[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Enrolled Bill (ENR)]


        H.R.6

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
  To ensure jobs for our future with secure, affordable, and reliable 
                                 energy.

    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 Policy Act 
of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Low-income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.

                  Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised 
          energy 
          conservation standards.

                       Subtitle D--Public Housing

Sec. 151. Public housing capital fund.
Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for 
          electric energy, useful heat, transportation fuels, and other 
          commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity 
          from renewable energy resources on public lands.

                      Subtitle B--Geothermal Energy

Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal 
          lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions, 
          rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal 
          years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.

                        Subtitle C--Hydroelectric

Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.

                       Subtitle D--Insular Energy

Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve 
          and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.

                         Subtitle B--Natural Gas

Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.

                         Subtitle C--Production

Sec. 321. Outer Continental Shelf provisions.
Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.

                   Subtitle D--Naval Petroleum Reserve

Sec. 331. Transfer of administrative jurisdiction and environmental 
          remediation, Naval Petroleum Reserve Numbered 2, Kern County, 
          California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered 
          2, to City of Taft, California.
Sec. 334. Revocation of land withdrawal.

                    Subtitle E--Production Incentives

Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the 
          shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in 
          Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide 
          injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.

                   Subtitle F--Access to Federal Lands

Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal 
          land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way 
          across public lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional 
          fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under 
          Padre Island National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.

                        Subtitle G--Miscellaneous

Sec. 381. Deadline for decision on appeals of consistency determination 
          under the Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental 
          Shelf Lands Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.

                   Subtitle H--Refinery Revitalization

Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.

                             TITLE IV--COAL

                 Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.

                    Subtitle B--Clean Power Projects

Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in 
          service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin 
          coal.

                  Subtitle C--Coal and Related Programs

Sec. 421. Amendment of the Energy Policy Act of 1992.

                     Subtitle D--Federal Coal Leases

Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation 
          and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to 
          bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.

                         TITLE V--INDIAN ENERGY

Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project and electrification.
Sec. 506. Energy efficiency in federally assisted housing.

                        TITLE VI--NUCLEAR MATTERS

                Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.

                   Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship 
          program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal 
          retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor 
          terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power 
          plants.
Sec. 635. Prohibition on assumption by United States Government of 
          liability for certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other 
          arrangements.

            Subtitle C--Next Generation Nuclear Plant Project

Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.

                      Subtitle D--Nuclear Security

Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.

                      TITLE VII--VEHICLES AND FUELS

                      Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
          purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization 
          initiative.
Sec. 707. Emergency exemption.

   Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                         Part 1--Hybrid Vehicles

Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.

                        Part 2--Advanced Vehicles

Sec. 721. Pilot program.
Sec. 722. Reports to Congress.
Sec. 723. Authorization of appropriations.

                         Part 3--Fuel Cell Buses

Sec. 731. Fuel cell transit bus demonstration.

                     Subtitle C--Clean School Buses

Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.

                        Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.

                    Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and 
          enforcement of fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative 
          fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for 
          automobiles.
Sec. 774. Update testing procedures.

                Subtitle F--Federal and State Procurement

Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and 
          hydrogen energy systems.
Sec. 783. Federal procurement of stationary, portable, and micro fuel 
          cells.

                 Subtitle G--Diesel Emissions Reduction

Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.

                      Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.

       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration programs.
Sec. 925. Electric transmission and distribution programs.

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle 
          propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.

   Subtitle D--Agricultural Biomass Research and Development Programs

Sec. 941. Amendments to the Biomass Research and Development Act of 
          2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.

                       Subtitle E--Nuclear Energy

Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.
Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and 
          facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.

                        Subtitle F--Fossil Energy

Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.

                           Subtitle G--Science

Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.

                  Subtitle H--International Cooperation

Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.

           Subtitle I--Research Administration and Operations

Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and 
          infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.

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

Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and 
          other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.
Sec. 1006. Improved coordination and management of civilian science and 
          technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and 
          technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.

                    TITLE XI--PERSONNEL AND TRAINING

Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Educational programs in science and mathematics.
Sec. 1103. Training guidelines for nonnuclear electric energy industry 
          personnel.
Sec. 1104. National Center for Energy Management and Building 
          Technologies.
Sec. 1105. Improved access to energy-related scientific and technical 
          careers.
Sec. 1106. National Power Plant Operations Technology and Educational 
          Center.

                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.

                    Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

          Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.

             Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific 
          Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity 
          mechanism.

                  Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.

                     Subtitle E--Amendments to PURPA

Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale 
          requirements.
Sec. 1254. Interconnection.

                       Subtitle F--Repeal of PUHCA

Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.

  Subtitle G--Market Transparency, Enforcement, and Consumer Protection

Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.
Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as 
          officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.

                         Subtitle H--Definitions

Sec. 1291. Definitions.

             Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                      Subtitle J--Economic Dispatch

Sec. 1298. Economic dispatch.

                TITLE XIII--ENERGY POLICY TAX INCENTIVES

Sec. 1300. Short title; amendment to 1986 Code.

                 Subtitle A--Electricity Infrastructure

Sec. 1301. Extension and modification of renewable electricity 
          production credit.
Sec. 1302. Application of section 45 credit to agricultural 
          cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC 
          restructuring policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution 
          control facilities in connection with plants first placed in 
          service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning 
          costs.
Sec. 1311. Five-year net operating loss carryover for certain losses.

                Subtitle B--Domestic Fossil Fuel Security

Sec. 1321. Extension of credit for producing fuel from a nonconventional 
          source for facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a 
          nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid 
          fuels.
Sec. 1324. Pass through to owners of deduction for capital costs 
          incurred by small refiner cooperatives in complying with 
          Environmental Protection Agency sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion 
          deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.

        Subtitle C--Conservation and Energy Efficiency Provisions

Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and 
          stationary microturbine power plants.
Sec. 1337. Business solar investment tax credit.

       Subtitle D--Alternative Motor Vehicles and Fuels Incentives

Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel 
          fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for 
          biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain 
          refueling property.

              Subtitle E--Additional Energy Tax Incentives

Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.

                 Subtitle F--Revenue Raising Provisions

Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund 
          financing rate.
Sec. 1363. Modification of recapture rules for amortizable section 197 
          intangibles.
Sec. 1364. Clarification of tire excise tax.

                        TITLE XIV--MISCELLANEOUS

                         Subtitle A--In General

Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.

                      Subtitle B--Set America Free

Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.

                    TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated 
          gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel 
          additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and 
          cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived 
          ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.

             Subtitle B--Underground Storage Tank Compliance

Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.

                       Subtitle C--Boutique Fuels

Sec. 1541. Reducing the proliferation of boutique fuels.

                        TITLE XVI--CLIMATE CHANGE

        Subtitle A--National Climate Change Technology Deployment

Sec. 1601. Greenhouse gas intensity reducing technology strategies.

Subtitle B--Climate Change Technology Deployment in Developing Countries

Sec. 1611. Climate change technology deployment in developing countries.

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.

                          TITLE XVIII--STUDIES

Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail 
          markets for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and 
          development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy 
          production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in 
          vehicle miles traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore 
          liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal 
          facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development 
          practices.
Sec. 1836. Resolution of Federal resource development conflicts in the 
          Powder River Basin.
Sec. 1837. National security review of international energy 
          requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential 
          hydropower facilities.

SEC. 2. DEFINITIONS.

    Except as otherwise provided, in this Act:
        (1) Department.--The term ``Department'' means the Department 
    of Energy.
        (2) Institution of higher education.--
            (A) In general.--The term ``institution of higher 
        education'' has the meaning given the term in section 101(a) of 
        the Higher Education Act of 1065 (20 U.S.C. 1001(a)).
            (B) Inclusion.--The term ``institution of higher 
        education'' includes an organization that--
                (i) is organized, and at all times thereafter operated, 
            exclusively for the benefit of, to perform the functions 
            of, or to carry out the functions of one or more 
            organizations referred to in subparagraph (A); and
                (ii) is operated, supervised, or controlled by or in 
            connection with one or more of those organizations.
        (3) 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.
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Energy.
        (5) Small business concern.--The term ``small business 
    concern'' has the meaning given the term in section 3 of the Small 
    Business Act (15 U.S.C. 632).

                       TITLE I--ENERGY EFFICIENCY
                      Subtitle A--Federal Programs

SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by adding 
at the end the following:

``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

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

``Sec. 552. Energy and water savings measures in congressional 
          buildings.''.

    (c) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (2 U.S.C. 1815), is repealed.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--
        (1) Amendment.--Section 543(a)(1) of the National Energy 
    Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by 
    striking ``its Federal buildings so that'' and all that follows 
    through the end and inserting ``the Federal buildings of the agency 
    (including each industrial or laboratory facility) so that the 
    energy consumption per gross square foot of the Federal buildings 
    of the agency in fiscal years 2006 through 2015 is reduced, as 
    compared with the energy consumption per gross square foot of the 
    Federal buildings of the agency in fiscal year 2003, by the 
    percentage specified in the following table:

      ``Fiscal Year
                                                    Percentage reduction
            2006..............................................
                                                                     2  
            2007..............................................
                                                                     4  
            2008..............................................
                                                                     6  
            2009..............................................
                                                                     8  
            2010..............................................
                                                                    10  
            2011..............................................
                                                                    12  
            2012..............................................
                                                                    14  
            2013..............................................
                                                                    16  
            2014..............................................
                                                                    18  
            2015..............................................
                                                                  20.''.

        (2) Reporting baseline.--The energy reduction goals and 
    baseline established in paragraph (1) of section 543(a) of the 
    National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)), as 
    amended by this subsection, supersede all previous goals and 
    baselines under such paragraph, and related reporting requirements.
    (b) Review and Revision of Energy Performance Requirement.--Section 
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8253(a)) is further amended by adding at the end the following:
    ``(3) Not later than December 31, 2014, the Secretary shall review 
the results of the implementation of the energy performance requirement 
established under paragraph (1) and submit to Congress recommendations 
concerning energy performance requirements for fiscal years 2016 
through 2025.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking 
``An agency may exclude'' and all that follows through the end and 
inserting ``(A) An agency may exclude, from the energy performance 
requirement for a fiscal year established under subsection (a) and the 
energy management requirement established under subsection (b), any 
Federal building or collection of Federal buildings, if the head of the 
agency finds that--
        ``(i) compliance with those requirements would be 
    impracticable;
        ``(ii) the agency has completed and submitted all federally 
    required energy management reports;
        ``(iii) the agency has achieved compliance with the energy 
    efficiency requirements of this Act, the Energy Policy Act of 1992, 
    Executive orders, and other Federal law; and
        ``(iv) the agency has implemented all practicable, life cycle 
    cost-effective projects with respect to the Federal building or 
    collection of Federal buildings to be excluded.
    ``(B) A finding of impracticability under subparagraph (A)(i) shall 
be based on--
        ``(i) the energy intensiveness of activities carried out in the 
    Federal building or collection of Federal buildings; or
        ``(ii) the fact that the Federal building or collection of 
    Federal buildings is used in the performance of a national security 
    function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
        (1) by striking ``impracticability standards'' and inserting 
    ``standards for exclusion'';
        (2) by striking ``a finding of impracticability'' and inserting 
    ``the exclusion''; and
        (3) by striking ``energy consumption requirements'' and 
    inserting ``requirements of subsections (a) and (b)(1)''.
    (e) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
    ``(3) Not later than 180 days after the date of enactment of this 
paragraph, the Secretary shall issue guidelines that establish criteria 
for exclusions under paragraph (1).''.
    (f) Retention of Energy and Water Savings.--Section 546 of the 
National Energy Conservation Policy Act (42 U.S.C. 8256) is amended by 
adding at the end the following new subsection:
    ``(e) Retention of Energy and Water Savings.--An agency may retain 
any funds appropriated to that agency for energy expenditures, water 
expenditures, or wastewater treatment expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings or water savings. Except as otherwise 
provided by law, such funds may be used only for energy efficiency, 
water conservation, or unconventional and renewable energy resources 
projects. Such projects shall be subject to the requirements of section 
3307 of title 40, United States Code.''.
    (g) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
        (1) in the subsection heading, by inserting ``the President 
    and'' before ``Congress''; and
        (2) by inserting ``President and'' before ``Congress''.
    (h) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is further amended by adding at the end the following:
    ``(e) Metering of Energy Use.--
        ``(1) Deadline.--By October 1, 2012, in accordance with 
    guidelines established by the Secretary under paragraph (2), all 
    Federal buildings shall, for the purposes of efficient use of 
    energy and reduction in the cost of electricity used in such 
    buildings, be metered. Each agency shall use, to the maximum extent 
    practicable, advanced meters or advanced metering devices that 
    provide data at least daily and that measure at least hourly 
    consumption of electricity in the Federal buildings of the agency. 
    Such data shall be incorporated into existing Federal energy 
    tracking systems and made available to Federal facility managers.
        ``(2) Guidelines.--
            ``(A) In general.--Not later than 180 days after the date 
        of enactment of this subsection, the Secretary, in consultation 
        with the Department of Defense, the General Services 
        Administration, representatives from the metering industry, 
        utility industry, energy services industry, energy efficiency 
        industry, energy efficiency advocacy organizations, national 
        laboratories, universities, and Federal facility managers, 
        shall establish guidelines for agencies to carry out paragraph 
        (1).
            ``(B) Requirements for guidelines.--The guidelines shall--
                ``(i) take into consideration--

                    ``(I) the cost of metering and the reduced cost of 
                operation and maintenance expected to result from 
                metering;
                    ``(II) the extent to which metering is expected to 
                result in increased potential for energy management, 
                increased potential for energy savings and energy 
                efficiency improvement, and cost and energy savings due 
                to utility contract aggregation; and
                    ``(III) the measurement and verification protocols 
                of the Department of Energy;

                ``(ii) include recommendations concerning the amount of 
            funds and the number of trained personnel necessary to 
            gather and use the metering information to track and reduce 
            energy use;
                ``(iii) establish priorities for types and locations of 
            buildings to be metered based on cost-effectiveness and a 
            schedule of one or more dates, not later than 1 year after 
            the date of issuance of the guidelines, on which the 
            requirements specified in paragraph (1) shall take effect; 
            and
                ``(iv) establish exclusions from the requirements 
            specified in paragraph (1) based on the de minimis quantity 
            of energy use of a Federal building, industrial process, or 
            structure.
        ``(3) Plan.--Not later than 6 months after the date guidelines 
    are established under paragraph (2), in a report submitted by the 
    agency under section 548(a), each agency shall submit to the 
    Secretary a plan describing how the agency will implement the 
    requirements of paragraph (1), including (A) how the agency will 
    designate personnel primarily responsible for achieving the 
    requirements and (B) demonstration by the agency, complete with 
    documentation, of any finding that advanced meters or advanced 
    metering devices, as defined in paragraph (1), are not 
    practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Requirements.--Part 3 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended by section 
101, is amended by adding at the end the following:

``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
        ``(1) Agency.--The term `agency' has the meaning given that 
    term in section 7902(a) of title 5, United States Code.
        ``(2) Energy star product.--The term `Energy Star product' 
    means a product that is rated for energy efficiency under an Energy 
    Star program.
        ``(3) Energy star program.--The term `Energy Star program' 
    means the program established by section 324A of the Energy Policy 
    and Conservation Act.
        ``(4) FEMP designated product.--The term `FEMP designated 
    product' means a product that is designated under the Federal 
    Energy Management Program of the Department of Energy as being 
    among the highest 25 percent of equivalent products for energy 
    efficiency.
        ``(5) Product.--The term `product' does not include any energy 
    consuming product or system designed or procured for combat or 
    combat-related missions.
    ``(b) Procurement of Energy Efficient Products.--
        ``(1) Requirement.--To meet the requirements of an agency for 
    an energy consuming product, the head of the agency shall, except 
    as provided in paragraph (2), procure--
            ``(A) an Energy Star product; or
            ``(B) a FEMP designated product.
        ``(2) Exceptions.--The head of an agency is not required to 
    procure an Energy Star product or FEMP designated product under 
    paragraph (1) if the head of the agency finds in writing that--
            ``(A) an Energy Star product or FEMP designated product is 
        not cost-effective over the life of the product taking energy 
        cost savings into account; or
            ``(B) no Energy Star product or FEMP designated product is 
        reasonably available that meets the functional requirements of 
        the agency.
        ``(3) Procurement planning.--The head of an agency shall 
    incorporate into the specifications for all procurements involving 
    energy consuming products and systems, including guide 
    specifications, project specifications, and construction, 
    renovation, and services contracts that include provision of energy 
    consuming products and systems, and into the factors for the 
    evaluation of offers received for the procurement, criteria for 
    energy efficiency that are consistent with the criteria used for 
    rating Energy Star products and for rating FEMP designated 
    products.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star products and FEMP designated products shall be clearly 
identified and prominently displayed in any inventory or listing of 
products by the General Services Administration or the Defense 
Logistics Agency. The General Services Administration or the Defense 
Logistics Agency shall supply only Energy Star products or FEMP 
designated products for all product categories covered by the Energy 
Star program or the Federal Energy Management Program, except in cases 
where the agency ordering a product specifies in writing that no Energy 
Star product or FEMP designated product is available to meet the 
buyer's functional requirements, or that no Energy Star product or FEMP 
designated product is cost-effective for the intended application over 
the life of the product, taking energy cost savings into account.
    ``(d) Specific Products.--(1) In the case of electric motors of 1 
to 500 horsepower, agencies shall select only premium efficient motors 
that meet a standard designated by the Secretary. The Secretary shall 
designate such a standard not later than 120 days after the date of the 
enactment of this section, after considering the recommendations of 
associated electric motor manufacturers and energy efficiency groups.
    ``(2) All Federal agencies are encouraged to take actions to 
maximize the efficiency of air conditioning and refrigeration 
equipment, including appropriate cleaning and maintenance, including 
the use of any system treatment or additive that will reduce the 
electricity consumed by air conditioning and refrigeration equipment. 
Any such treatment or additive must be--
        ``(A) determined by the Secretary to be effective in increasing 
    the efficiency of air conditioning and refrigeration equipment 
    without having an adverse impact on air conditioning performance 
    (including cooling capacity) or equipment useful life;
        ``(B) determined by the Administrator of the Environmental 
    Protection Agency to be environmentally safe; and
        ``(C) shown to increase seasonal energy efficiency ratio (SEER) 
    or energy efficiency ratio (EER) when tested by the National 
    Institute of Standards and Technology according to Department of 
    Energy test procedures without causing any adverse impact on the 
    system, system components, the refrigerant or lubricant, or other 
    materials in the system.
    Results of testing described in subparagraph (C) shall be published 
    in the Federal Register for public review and comment. For purposes 
    of this section, a hardware device or primary refrigerant shall not 
    be considered an additive.
    ``(e) Regulations.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall issue guidelines to 
carry out this section.''.
    (b) Conforming Amendment.--The table of contents of the National 
Energy Conservation Policy Act is further amended by inserting after 
the item relating to section 552 the following new item:
``Sec. 553. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Extension.--Section 801(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(c)) is amended by striking ``2006'' and 
inserting ``2016''.
    (b) Extension of Authority.--Any energy savings performance 
contract entered into under section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003, and 
before the date of enactment of this Act, shall be considered to have 
been entered into under that section.

SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Definition of Energy Intensity.--In this section, the term 
``energy intensity'' means the primary energy consumed for each unit of 
physical output in an industrial process.
    (b) Voluntary Agreements.--The Secretary may enter into voluntary 
agreements with one or more persons in industrial sectors that consume 
significant quantities of primary energy for each unit of physical 
output to reduce the energy intensity of the production activities of 
the persons.
    (c) Goal.--Voluntary agreements under this section shall have as a 
goal the reduction of energy intensity by not less than 2.5 percent 
each year during the period of calendar years 2007 through 2016.
    (d) Recognition.--The Secretary, in cooperation with other 
appropriate Federal agencies, shall develop mechanisms to recognize and 
publicize the achievements of participants in voluntary agreements 
under this section.
    (e) Technical Assistance.--A person that enters into an agreement 
under this section and continues to make a good faith effort to achieve 
the energy efficiency goals specified in the agreement shall be 
eligible to receive from the Secretary a grant or technical assistance, 
as appropriate, to assist in the achievement of those goals.
    (f) Report.--Not later than each of June 30, 2012, and June 30, 
2017, the Secretary shall submit to Congress a report that--
        (1) evaluates the success of the voluntary agreements under 
    this section; and
        (2) provides independent verification of a sample of the energy 
    savings estimates provided by participating firms.

SEC. 107. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary, in consultation with the 
Administrator of General Services, shall establish an Advanced Building 
Efficiency Testbed program for the development, testing, and 
demonstration of advanced engineering systems, components, and 
materials to enable innovations in building technologies. The program 
shall evaluate efficiency concepts for government and industry 
buildings, and demonstrate the ability of next generation buildings to 
support individual and organizational productivity and health 
(including by improving indoor air quality) as well as flexibility and 
technological change to improve environmental sustainability. Such 
program shall complement and not duplicate existing national programs.
    (b) Participants.--The program established under subsection (a) 
shall be led by a university with the ability to combine the expertise 
from numerous academic fields including, at a minimum, intelligent 
workplaces and advanced building systems and engineering, electrical 
and computer engineering, computer science, architecture, urban design, 
and environmental and mechanical engineering. Such university shall 
partner with other universities and entities who have established 
programs and the capability of advancing innovative building efficiency 
technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $6,000,000 for 
each of the fiscal years 2006 through 2008, to remain available until 
expended. For any fiscal year in which funds are expended under this 
section, the Secretary shall provide one-third of the total amount to 
the lead university described in subsection (b), and provide the 
remaining two-thirds to the other participants referred to in 
subsection (b) on an equal basis.

SEC. 108. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
              FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
              CONCRETE.

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


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

    ``Sec. 6005. (a) Definitions.--In this section:
        ``(1) Agency head.--The term `agency head' means--
            ``(A) the Secretary of Transportation; and
            ``(B) the head of any other Federal agency that, on a 
        regular basis, procures, or provides Federal funds to pay or 
        assist in paying the cost of procuring, material for cement or 
        concrete projects.
        ``(2) Cement or concrete project.--The term `cement or concrete 
    project' means a project for the construction or maintenance of a 
    highway or other transportation facility or a Federal, State, or 
    local government building or other public facility that--
            ``(A) involves the procurement of cement or concrete; and
            ``(B) is carried out, in whole or in part, using Federal 
        funds.
        ``(3) Recovered mineral component.--The term `recovered mineral 
    component' means--
            ``(A) ground granulated blast furnace slag, excluding lead 
        slag;
            ``(B) coal combustion fly ash; and
            ``(C) any other waste material or byproduct recovered or 
        diverted from solid waste that the Administrator, in 
        consultation with an agency head, determines should be treated 
        as recovered mineral component under this section for use in 
        cement or concrete projects paid for, in whole or in part, by 
        the agency head.
    ``(b) Implementation of Requirements.--
        ``(1) In general.--Not later than 1 year after the date of 
    enactment of this section, the Administrator and each agency head 
    shall take such actions as are necessary to implement fully all 
    procurement requirements and incentives in effect as of the date of 
    enactment of this section (including guidelines under section 6002) 
    that provide for the use of cement and concrete incorporating 
    recovered mineral component in cement or concrete projects.
        ``(2) Priority.--In carrying out paragraph (1), an agency head 
    shall give priority to achieving greater use of recovered mineral 
    component in cement or concrete projects for which recovered 
    mineral components historically have not been used or have been 
    used only minimally.
        ``(3) Federal procurement requirements.--The Administrator and 
    each agency head shall carry out this subsection in accordance with 
    section 6002.
    ``(c) Full Implementation Study.--
        ``(1) In general.--The Administrator, in cooperation with the 
    Secretary of Transportation and the Secretary of Energy, shall 
    conduct a study to determine the extent to which procurement 
    requirements, when fully implemented in accordance with subsection 
    (b), may realize energy savings and environmental benefits 
    attainable with substitution of recovered mineral component in 
    cement used in cement or concrete projects.
        ``(2) Matters to be addressed.--The study shall--
            ``(A) quantify--
                ``(i) the extent to which recovered mineral components 
            are being substituted for Portland cement, particularly as 
            a result of procurement requirements; and
                ``(ii) the energy savings and environmental benefits 
            associated with the substitution;
            ``(B) identify all barriers in procurement requirements to 
        greater realization of energy savings and environmental 
        benefits, including barriers resulting from exceptions from the 
        law; and
            ``(C)(i) identify potential mechanisms to achieve greater 
        substitution of recovered mineral component in types of cement 
        or concrete projects for which recovered mineral components 
        historically have not been used or have been used only 
        minimally;
            ``(ii) evaluate the feasibility of establishing guidelines 
        or standards for optimized substitution rates of recovered 
        mineral component in those cement or concrete projects; and
            ``(iii) identify any potential environmental or economic 
        effects that may result from greater substitution of recovered 
        mineral component in those cement or concrete projects.
        ``(3) Report.--Not later than 30 months after the date of 
    enactment of this section, the Administrator shall submit to 
    Congress a report on the study.
    ``(d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other problems 
described in subsection (c)(2)(C)(iii) that warrant further review or 
delay, the Administrator and each agency head shall, not later than 1 
year after the date on which the report under subsection (c)(3) is 
submitted, take additional actions under this Act to establish 
procurement requirements and incentives that provide for the use of 
cement and concrete with increased substitution of recovered mineral 
component in the construction and maintenance of cement or concrete 
projects--
        ``(1) to realize more fully the energy savings and 
    environmental benefits associated with increased substitution; and
        ``(2) to eliminate barriers identified under subsection 
    (c)(2)(B).
    ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
    (b) Conforming Amendment.--The table of contents of the Solid Waste 
Disposal Act is amended by adding after the item relating to section 
6004 the following:
``Sec. 6005. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or 
          concrete.''.

SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production Act (42 
U.S.C. 6834(a)) is amended--
        (1) in paragraph (2)(A), by striking ``CABO Model Energy Code, 
    1992 (in the case of residential buildings) or ASHRAE Standard 
    90.1-1989'' and inserting ``the 2004 International Energy 
    Conservation Code (in the case of residential buildings) or ASHRAE 
    Standard 90.1-2004''; and
        (2) by adding at the end the following:
    ``(3)(A) Not later than 1 year after the date of enactment of this 
paragraph, the Secretary shall establish, by rule, revised Federal 
building energy efficiency performance standards that require that--
        ``(i) if life-cycle cost-effective for new Federal buildings--
            ``(I) the buildings be designed to achieve energy 
        consumption levels that are at least 30 percent below the 
        levels established in the version of the ASHRAE Standard or the 
        International Energy Conservation Code, as appropriate, that is 
        in effect as of the date of enactment of this paragraph; and
            ``(II) sustainable design principles are applied to the 
        siting, design, and construction of all new and replacement 
        buildings; and
        ``(ii) if water is used to achieve energy efficiency, water 
    conservation technologies shall be applied to the extent that the 
    technologies are life-cycle cost-effective.
    ``(B) Not later than 1 year after the date of approval of each 
subsequent revision of the ASHRAE Standard or the International Energy 
Conservation Code, as appropriate, the Secretary shall determine, based 
on the cost-effectiveness of the requirements under the amendment, 
whether the revised standards established under this paragraph should 
be updated to reflect the amendment.
    ``(C) In the budget request of the Federal agency for each fiscal 
year and each report submitted by the Federal agency under section 
548(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8258(a)), the head of each Federal agency shall include--
        ``(i) a list of all new Federal buildings owned, operated, or 
    controlled by the Federal agency; and
        ``(ii) a statement specifying whether the Federal buildings 
    meet or exceed the revised standards established under this 
    paragraph.''.

SEC. 110. DAYLIGHT SAVINGS.

    (a) Amendment.--Section 3(a) of the Uniform Time Act of 1966 (15 
U.S.C. 260a(a)) is amended--
        (1) by striking ``first Sunday of April'' and inserting 
    ``second Sunday of March''; and
        (2) by striking ``last Sunday of October'' and inserting 
    ``first Sunday of November''.
    (b) Effective Date.--Subsection (a) shall take effect 1 year after 
the date of enactment of this Act or March 1, 2007, whichever is later.
    (c) Report to Congress.--Not later than 9 months after the 
effective date stated in subsection (b), the Secretary shall report to 
Congress on the impact of this section on energy consumption in the 
United States.
    (d) Right to Revert.--Congress retains the right to revert the 
Daylight Saving Time back to the 2005 time schedules once the 
Department study is complete.

SEC. 111. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.

    (a) Sense of the Congress.--It is the sense of the Congress that 
Federal agencies should enhance the use of energy efficient 
technologies in the management of natural resources.
    (b) Energy Efficient Buildings.--To the extent practicable, the 
Secretary of the Interior, the Secretary of Commerce, and the Secretary 
of Agriculture shall seek to incorporate energy efficient technologies 
in public and administrative buildings associated with management of 
the National Park System, National Wildlife Refuge System, National 
Forest System, National Marine Sanctuaries System, and other public 
lands and resources managed by the Secretaries.
    (c) Energy Efficient Vehicles.--To the extent practicable, the 
Secretary of the Interior, the Secretary of Commerce, and the Secretary 
of Agriculture shall seek to use energy efficient motor vehicles, 
including vehicles equipped with biodiesel or hybrid engine 
technologies, in the management of the National Park System, National 
Wildlife Refuge System, National Forest System, National Marine 
Sanctuaries System, and other public lands and resources managed by the 
Secretaries.

            Subtitle B--Energy Assistance and State Programs

SEC. 121. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

    (a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is 
amended by striking ``and $2,000,000,000 for each of fiscal years 2002 
through 2004'' and inserting ``and $5,100,000,000 for each of fiscal 
years 2005 through 2007''.
    (b) Renewable Fuels.--The Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8621 et seq.) is amended by adding at the end the 
following new section:


                            ``RENEWABLE FUELS

    ``Sec. 2612. In providing assistance pursuant to this title, a 
State, or any other person with which the State makes arrangements to 
carry out the purposes of this title, may purchase renewable fuels, 
including biomass.''.
    (c) Report to Congress.--The Secretary shall report to Congress on 
the use of renewable fuels in providing assistance under the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

SEC. 122. WEATHERIZATION ASSISTANCE.

    (a) Authorization of Appropriations.--Section 422 of the Energy 
Conservation and Production Act (42 U.S.C. 6872) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$500,000,000 for fiscal year 2006, $600,000,000 for 
fiscal year 2007, and $700,000,000 for fiscal year 2008''.
    (b) Eligibility.--Section 412(7) of the Energy Conservation and 
Production Act (42 U.S.C. 6862(7)) is amended by striking ``125 
percent'' both places it appears and inserting ``150 percent''.

SEC. 123. STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at 
the end the following new subsection:
    ``(g) The Secretary shall, at least once every 3 years, invite the 
Governor of each State to review and, if necessary, revise the energy 
conservation plan of such State submitted under subsection (b) or (e). 
Such reviews should consider the energy conservation plans of other 
States within the region, and identify opportunities and actions 
carried out in pursuit of common energy conservation goals.''.
    (b) State Energy Efficiency Goals.--Section 364 of the Energy 
Policy and Conservation Act (42 U.S.C. 6324) is amended to read as 
follows:


                     ``STATE ENERGY EFFICIENCY GOALS

    ``Sec. 364. Each State energy conservation plan with respect to 
which assistance is made available under this part on or after the date 
of enactment of the Energy Policy Act of 2005 shall contain a goal, 
consisting of an improvement of 25 percent or more in the efficiency of 
use of energy in the State concerned in calendar year 2012 as compared 
to calendar year 1990, and may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$100,000,000 for each of the fiscal years 2006 and 2007 
and $125,000,000 for fiscal year 2008''.

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
        (1) Eligible state.--The term ``eligible State'' means a State 
    that meets the requirements of subsection (b).
        (2) Energy star program.--The term ``Energy Star program'' 
    means the program established by section 324A of the Energy Policy 
    and Conservation Act.
        (3) Residential energy star product.--The term ``residential 
    Energy Star product'' means a product for a residence that is rated 
    for energy efficiency under the Energy Star program.
        (4) State energy office.--The term ``State energy office'' 
    means the State agency responsible for developing State energy 
    conservation plans under section 362 of the Energy Policy and 
    Conservation Act (42 U.S.C. 6322).
        (5) State program.--The term ``State program'' means a State 
    energy efficient appliance rebate program described in subsection 
    (b)(1).
    (b) Eligible States.--A State shall be eligible to receive an 
allocation under subsection (c) if the State--
        (1) establishes (or has established) a State energy efficient 
    appliance rebate program to provide rebates to residential 
    consumers for the purchase of residential Energy Star products to 
    replace used appliances of the same type;
        (2) submits an application for the allocation at such time, in 
    such form, and containing such information as the Secretary may 
    require; and
        (3) provides assurances satisfactory to the Secretary that the 
    State will use the allocation to supplement, but not supplant, 
    funds made available to carry out the State program.
    (c) Amount of Allocations.--
        (1) In general.--Subject to paragraph (2), for each fiscal 
    year, the Secretary shall allocate to the State energy office of 
    each eligible State to carry out subsection (d) an amount equal to 
    the product obtained by multiplying the amount made available under 
    subsection (f) for the fiscal year by the ratio that the population 
    of the State in the most recent calendar year for which data are 
    available bears to the total population of all eligible States in 
    that calendar year.
        (2) Minimum allocations.--For each fiscal year, the amounts 
    allocated under this subsection shall be adjusted proportionately 
    so that no eligible State is allocated a sum that is less than an 
    amount determined by the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State energy 
office under subsection (c) may be used to pay up to 50 percent of the 
cost of establishing and carrying out a State program.
    (e) Issuance of Rebates.--Rebates may be provided to residential 
consumers that meet the requirements of the State program. The amount 
of a rebate shall be determined by the State energy office, taking into 
consideration--
        (1) the amount of the allocation to the State energy office 
    under subsection (c);
        (2) the amount of any Federal or State tax incentive available 
    for the purchase of the residential Energy Star product; and
        (3) the difference between the cost of the residential Energy 
    Star product and the cost of an appliance that is not a residential 
    Energy Star product, but is of the same type as, and is the nearest 
    capacity, performance, and other relevant characteristics (as 
    determined by the State energy office) to, the residential Energy 
    Star product.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of the fiscal years 2006 through 2010.

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary may make grants to the State agency 
responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or, if no such agency exists, a State agency designated by the Governor 
of the State, to assist units of local government in the State in 
improving the energy efficiency of public buildings and facilities--
        (1) through construction of new energy efficient public 
    buildings that use at least 30 percent less energy than a 
    comparable public building constructed in compliance with standards 
    prescribed in the most recent version of the International Energy 
    Conservation Code, or a similar State code intended to achieve 
    substantially equivalent efficiency levels; or
        (2) through renovation of existing public buildings to achieve 
    reductions in energy use of at least 30 percent as compared to the 
    baseline energy use in such buildings prior to renovation, assuming 
    a 3-year, weather-normalized average for calculating such baseline.
    (b) Administration.--State energy offices receiving grants under 
this section shall--
        (1) maintain such records and evidence of compliance as the 
    Secretary may require; and
        (2) develop and distribute information and materials and 
    conduct programs to provide technical services and assistance to 
    encourage planning, financing, and design of energy efficient 
    public buildings by units of local government.
    (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$30,000,000 for each of fiscal years 2006 through 2010. Not more than 
10 percent of appropriated funds shall be used for administration.

SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--The Secretary is authorized to make grants to units of 
local government, private, non-profit community development 
organizations, and Indian tribe economic development entities to 
improve energy efficiency; identify and develop alternative, renewable, 
and distributed energy supplies; and increase energy conservation in 
low income rural and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
        (1) investments that develop alternative, renewable, and 
    distributed energy supplies;
        (2) energy efficiency projects and energy conservation 
    programs;
        (3) studies and other activities that improve energy efficiency 
    in low income rural and urban communities;
        (4) planning and development assistance for increasing the 
    energy efficiency of buildings and facilities; and
        (5) technical and financial assistance to local government and 
    private entities on developing new renewable and distributed 
    sources of power or combined heat and power generation.
    (c) Definition.--For purposes of this section, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of this 
section there are authorized to be appropriated to the Secretary 
$20,000,000 for each of fiscal years 2006 through 2008.

SEC. 127. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

    (a) In General.--The Secretary, in cooperation with the States, 
shall establish a cooperative program for research, development, 
demonstration, and deployment of technologies in which there is a 
common Federal and State energy efficiency, renewable energy, and 
fossil energy interest, to be known as the ``State Technologies 
Advancement Collaborative'' (referred to in this section as the 
``Collaborative'').
    (b) Duties.--The Collaborative shall--
        (1) leverage Federal and State funding through cost-shared 
    activity;
        (2) reduce redundancies in Federal and State funding; and
        (3) create multistate projects to be awarded through a 
    competitive process.
    (c) Administration.--The Collaborative shall be administered 
through an agreement between the Department and appropriate State-based 
organizations.
    (d) Funding Sources.--Funding for the Collaborative may be provided 
from--
        (1) amounts specifically appropriated for the Collaborative; or
        (2) amounts that may be allocated from other appropriations 
    without changing the purpose for which the amounts are 
    appropriated.
    (e) Authorization of Appropriations.--There are authorized to carry 
out this section such sums as are necessary for each of fiscal years 
2006 through 2010.

SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.

    Section 304(e) of the Energy Conservation and Production Act (42 
U.S.C. 6833(e)) is amended--
        (1) in paragraph (1), by inserting before the period at the end 
    of the first sentence the following: ``, including increasing and 
    verifying compliance with such codes''; and
        (2) by striking paragraph (2) and inserting the following:
    ``(2) Additional funding shall be provided under this subsection 
for implementation of a plan to achieve and document at least a 90 
percent rate of compliance with residential and commercial building 
energy efficiency codes, based on energy performance--
        ``(A) to a State that has adopted and is implementing, on a 
    statewide basis--
            ``(i) a residential building energy efficiency code that 
        meets or exceeds the requirements of the 2004 International 
        Energy Conservation Code, or any succeeding version of that 
        code that has received an affirmative determination from the 
        Secretary under subsection (a)(5)(A); and
            ``(ii) a commercial building energy efficiency code that 
        meets or exceeds the requirements of the ASHRAE Standard 90.1-
        2004, or any succeeding version of that standard that has 
        received an affirmative determination from the Secretary under 
        subsection (b)(2)(A); or
        ``(B) in a State in which there is no statewide energy code 
    either for residential buildings or for commercial buildings, to a 
    local government that has adopted and is implementing residential 
    and commercial building energy efficiency codes, as described in 
    subparagraph (A).
    ``(3) Of the amounts made available under this subsection, the 
Secretary may use $500,000 for each fiscal year to train State and 
local officials to implement codes described in paragraph (2).
    ``(4)(A) There are authorized to be appropriated to carry out this 
subsection--
        ``(i) $25,000,000 for each of fiscal years 2006 through 2010; 
    and
        ``(ii) such sums as are necessary for fiscal year 2011 and each 
    fiscal year thereafter.
    ``(B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed one-half of the excess of funding under 
this subsection over $5,000,000 for the fiscal year.''.

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

    (a) In General.--The Energy Policy and Conservation Act is amended 
by inserting after section 324 (42 U.S.C. 6294) the following:


                          ``ENERGY STAR PROGRAM

    ``Sec. 324A. (a) In General.--There is established within the 
Department of Energy and the Environmental Protection Agency a 
voluntary program to identify and promote energy-efficient products and 
buildings in order to reduce energy consumption, improve energy 
security, and reduce pollution through voluntary labeling of, or other 
forms of communication about, products and buildings that meet the 
highest energy conservation standards.
    ``(b) Division of Responsibilities.--Responsibilities under the 
program shall be divided between the Department of Energy and the 
Environmental Protection Agency in accordance with the terms of 
applicable agreements between those agencies.
    ``(c) Duties.--The Administrator and the Secretary shall--
        ``(1) promote Energy Star compliant technologies as the 
    preferred technologies in the marketplace for--
            ``(A) achieving energy efficiency; and
            ``(B) reducing pollution;
        ``(2) work to enhance public awareness of the Energy Star 
    label, including by providing special outreach to small businesses;
        ``(3) preserve the integrity of the Energy Star label;
        ``(4) regularly update Energy Star product criteria for product 
    categories;
        ``(5) solicit comments from interested parties prior to 
    establishing or revising an Energy Star product category, 
    specification, or criterion (or prior to effective dates for any 
    such product category, specification, or criterion);
        ``(6) on adoption of a new or revised product category, 
    specification, or criterion, provide reasonable notice to 
    interested parties of any changes (including effective dates) in 
    product categories, specifications, or criteria, along with--
            ``(A) an explanation of the changes; and
            ``(B) as appropriate, responses to comments submitted by 
        interested parties; and
        ``(7) provide appropriate lead time (which shall be 270 days, 
    unless the Agency or Department specifies otherwise) prior to the 
    applicable effective date for a new or a significant revision to a 
    product category, specification, or criterion, taking into account 
    the timing requirements of the manufacturing, product marketing, 
    and distribution process for the specific product addressed.
    ``(d) Deadlines.--The Secretary shall establish new qualifying 
levels--
        ``(1) not later than January 1, 2006, for clothes washers and 
    dishwashers, effective beginning January 1, 2007; and
        ``(2) not later than January 1, 2008, for clothes washers, 
    effective beginning January 1, 2010.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by 
inserting after the item relating to section 324 the following:
``Sec. 324A. Energy Star program.''.

SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

    Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 
6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--(1) To ensure that installed air 
conditioning and heating systems operate at maximum rated efficiency 
levels, the Secretary shall, not later than 180 days after the date of 
enactment of this subsection, carry out a program to educate homeowners 
and small business owners concerning the energy savings from properly 
conducted maintenance of air conditioning, heating, and ventilating 
systems.
    ``(2) The Secretary shall carry out the program under paragraph 
(1), on a cost-shared basis, in cooperation with the Administrator of 
the Environmental Protection Agency and any other entities that the 
Secretary determines to be appropriate, including industry trade 
associations, industry members, and energy efficiency organizations.
    ``(d) Small Business Education and Assistance.--(1) The 
Administrator of the Small Business Administration, in consultation 
with the Secretary and the Administrator of the Environmental 
Protection Agency, shall develop and coordinate a Government-wide 
program, building on the Energy Star for Small Business Program, to 
assist small businesses in--
        ``(A) becoming more energy efficient;
        ``(B) understanding the cost savings from improved energy 
    efficiency;
        ``(C) understanding and accessing Federal procurement 
    opportunities with regard to Energy Star technologies and products; 
    and
        ``(D) identifying financing options for energy efficiency 
    upgrades.
    ``(2) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration shall--
        ``(A) make program information available to small business 
    concerns directly through the district offices and resource 
    partners of the Small Business Administration, including small 
    business development centers, women's business centers, and the 
    Service Corps of Retired Executives (SCORE), and through other 
    Federal agencies, including the Federal Emergency Management Agency 
    and the Department of Agriculture; and
        ``(B) coordinate assistance with the Secretary of Commerce for 
    manufacturing-related efforts, including the Manufacturing 
    Extension Partnership Program.
    ``(3) The Secretary, on a cost shared basis in cooperation with the 
Administrator of the Environmental Protection Agency, shall provide to 
the Small Business Administration all advertising, marketing, and other 
written materials necessary for the dissemination of information under 
paragraph (2).
    ``(4) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration, as part of the outreach to small business concerns 
under the Energy Star Program for Small Business Program, may enter 
into cooperative agreements with qualified resources partners 
(including the National Center for Appropriate Technology) to 
establish, maintain, and promote a Small Business Energy Clearinghouse 
(in this subsection referred to as the `Clearinghouse').
    ``(5) The Secretary, the Administrator of the Environmental 
Protection Agency, and the Administrator of the Small Business 
Administration shall ensure that the Clearinghouse provides a 
centralized resource where small business concerns may access, 
telephonically and electronically, technical information and advice to 
help increase energy efficiency and reduce energy costs.
    ``(6) There are authorized to be appropriated such sums as are 
necessary to carry out this subsection, to remain available until 
expended.''.

SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall convene an organizational 
conference for the purpose of establishing an ongoing, self-sustaining 
national public energy education program.
    (b) Participants.--The Secretary shall invite to participate in the 
conference individuals and entities representing all aspects of energy 
production and distribution, including--
        (1) industrial firms;
        (2) professional societies;
        (3) educational organizations;
        (4) trade associations; and
        (5) governmental agencies.
    (c) Purpose, Scope, and Structure.--
        (1) Purpose.--The purpose of the conference shall be to 
    establish an ongoing, self-sustaining national public energy 
    education program to examine and recognize interrelationships 
    between energy sources in all forms, including--
            (A) conservation and energy efficiency;
            (B) the role of energy use in the economy; and
            (C) the impact of energy use on the environment.
        (2) Scope and structure.--Taking into consideration the purpose 
    described in paragraph (1), the participants in the conference 
    invited under subsection (b) shall design the scope and structure 
    of the program described in subsection (a).
    (d) Technical Assistance.--The Secretary shall provide technical 
assistance and other guidance necessary to carry out the program 
described in subsection (a).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

    (a) In General.--The Secretary shall carry out a comprehensive 
national program, including advertising and media awareness, to inform 
consumers about--
        (1) the need to reduce energy consumption during the 4-year 
    period beginning on the date of enactment of this Act;
        (2) the benefits to consumers of reducing consumption of 
    electricity, natural gas, and petroleum, particularly during peak 
    use periods;
        (3) the importance of low energy costs to economic growth and 
    preserving manufacturing jobs in the United States; and
        (4) practical, cost-effective measures that consumers can take 
    to reduce consumption of electricity, natural gas, and gasoline, 
    including--
            (A) maintaining and repairing heating and cooling ducts and 
        equipment;
            (B) weatherizing homes and buildings;
            (C) purchasing energy efficient products; and
            (D) proper tire maintenance.
    (b) Cooperation.--The program carried out under subsection (a) 
shall--
        (1) include collaborative efforts with State and local 
    government officials and the private sector; and
        (2) incorporate, to the maximum extent practicable, successful 
    State and local public education programs.
    (c) Report.--Not later than July 1, 2009, the Secretary shall 
submit to Congress a report describing the effectiveness of the program 
under this section.
    (d) Termination of Authority.--The program carried out under this 
section shall terminate on December 31, 2010.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $90,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
        (1) in paragraph (29)--
            (A) in subparagraph (D)--
                (i) in clause (i), by striking ``C78.1-1978(R1984)'' 
            and inserting ``C78.81-2003 (Data Sheet 7881-ANSI-1010-
            1)'';
                (ii) in clause (ii), by striking ``C78.1-1978(R1984)'' 
            and inserting ``C78.81-2003 (Data Sheet 7881-ANSI-3007-
            1)''; and
                (iii) in clause (iii), by striking ``C78.1-
            1978(R1984)'' and inserting ``C78.81-2003 (Data Sheet 7881-
            ANSI-1019-1)''; and
            (B) by adding at the end the following:
        ``(M) The term `F34T12 lamp' (also known as a `F40T12/ES lamp') 
    means a nominal 34 watt tubular fluorescent lamp that is 48 inches 
    in length and 1\1/2\ inches in diameter, and conforms to ANSI 
    standard C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
        ``(N) The term `F96T12/ES lamp' means a nominal 60 watt tubular 
    fluorescent lamp that is 96 inches in length and 1\1/2\ inches in 
    diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 
    7881-ANSI-3006-1).
        ``(O) The term `F96T12HO/ES lamp' means a nominal 95 watt 
    tubular fluorescent lamp that is 96 inches in length and 1\1/2\ 
    inches in diameter, and conforms to ANSI standard C78.81-2003 (Data 
    Sheet 7881-ANSI-1017-1).
        ``(P) The term `replacement ballast' means a ballast that--
            ``(i) is designed for use to replace an existing ballast in 
        a previously installed luminaire;
            ``(ii) is marked `FOR REPLACEMENT USE ONLY';
            ``(iii) is shipped by the manufacturer in packages 
        containing not more than 10 ballasts; and
            ``(iv) has output leads that when fully extended are a 
        total length that is less than the length of the lamp with 
        which the ballast is intended to be operated.'';
        (2) in paragraph (30)(S)--
            (A) by inserting ``(i)'' before ``The term''; and
            (B) by adding at the end the following:
            ``(ii) The term `medium base compact fluorescent lamp' does 
        not include--
                ``(I) any lamp that is--

                    ``(aa) specifically designed to be used for special 
                purpose applications; and
                    ``(bb) unlikely to be used in general purpose 
                applications, such as the applications described in 
                subparagraph (D); or

                ``(II) any lamp not described in subparagraph (D) that 
            is excluded by the Secretary, by rule, because the lamp 
            is--

                    ``(aa) designed for special applications; and
                    ``(bb) unlikely to be used in general purpose 
                applications.''; and

        (3) by adding at the end the following:
        ``(32) The term `battery charger' means a device that charges 
    batteries for consumer products, including battery chargers 
    embedded in other consumer products.
        ``(33)(A) The term `commercial prerinse spray valve' means a 
    handheld device designed and marketed for use with commercial 
    dishwashing and ware washing equipment that sprays water on dishes, 
    flatware, and other food service items for the purpose of removing 
    food residue before cleaning the items.
        ``(B) The Secretary may modify the definition of `commercial 
    prerinse spray valve' by rule--
            ``(i) to include products--
                ``(I) that are extensively used in conjunction with 
            commercial dishwashing and ware washing equipment;
                ``(II) the application of standards to which would 
            result in significant energy savings; and
                ``(III) the application of standards to which would 
            meet the criteria specified in section 325(o)(4); and
            ``(ii) to exclude products--
                ``(I) that are used for special food service 
            applications;
                ``(II) that are unlikely to be widely used in 
            conjunction with commercial dishwashing and ware washing 
            equipment; and
                ``(III) the application of standards to which would not 
            result in significant energy savings.
        ``(34) The term `dehumidifier' means a self-contained, 
    electrically operated, and mechanically encased assembly consisting 
    of--
            ``(A) a refrigerated surface (evaporator) that condenses 
        moisture from the atmosphere;
            ``(B) a refrigerating system, including an electric motor;
            ``(C) an air-circulating fan; and
            ``(D) means for collecting or disposing of the condensate.
        ``(35)(A) The term `distribution transformer' means a 
    transformer that--
            ``(i) has an input voltage of 34.5 kilovolts or less;
            ``(ii) has an output voltage of 600 volts or less; and
            ``(iii) is rated for operation at a frequency of 60 Hertz.
        ``(B) The term `distribution transformer' does not include--
            ``(i) a transformer with multiple voltage taps, the highest 
        of which equals at least 20 percent more than the lowest;
            ``(ii) a transformer that is designed to be used in a 
        special purpose application and is unlikely to be used in 
        general purpose applications, such as a drive transformer, 
        rectifier transformer, auto-transformer, Uninterruptible Power 
        System transformer, impedance transformer, regulating 
        transformer, sealed and nonventilating transformer, machine 
        tool transformer, welding transformer, grounding transformer, 
        or testing transformer; or
            ``(iii) any transformer not listed in clause (ii) that is 
        excluded by the Secretary by rule because--
                ``(I) the transformer is designed for a special 
            application;
                ``(II) the transformer is unlikely to be used in 
            general purpose applications; and
                ``(III) the application of standards to the transformer 
            would not result in significant energy savings.
        ``(36) The term `external power supply' means an external power 
    supply circuit that is used to convert household electric current 
    into DC current or lower-voltage AC current to operate a consumer 
    product.
        ``(37) The term `illuminated exit sign' means a sign that--
            ``(A) is designed to be permanently fixed in place to 
        identify an exit; and
            ``(B) consists of an electrically powered integral light 
        source that--
                ``(i) illuminates the legend `EXIT' and any directional 
            indicators; and
                ``(ii) provides contrast between the legend, any 
            directional indicators, and the background.
        ``(38) The term `low-voltage dry-type distribution transformer' 
    means a distribution transformer that--
            ``(A) has an input voltage of 600 volts or less;
            ``(B) is air-cooled; and
            ``(C) does not use oil as a coolant.
        ``(39) The term `pedestrian module' means a light signal used 
    to convey movement information to pedestrians.
        ``(40) The term `refrigerated bottled or canned beverage 
    vending machine' means a commercial refrigerator that cools bottled 
    or canned beverages and dispenses the bottled or canned beverages 
    on payment.
        ``(41) The term `standby mode' means the lowest power 
    consumption mode, as established on an individual product basis by 
    the Secretary, that--
            ``(A) cannot be switched off or influenced by the user; and
            ``(B) may persist for an indefinite time when an appliance 
        is--
                ``(i) connected to the main electricity supply; and
                ``(ii) used in accordance with the instructions of the 
            manufacturer.
        ``(42) The term `torchiere' means a portable electric lamp with 
    a reflector bowl that directs light upward to give indirect 
    illumination.
        ``(43) The term `traffic signal module' means a standard 8-inch 
    (200mm) or 12-inch (300mm) traffic signal indication that--
            ``(A) consists of a light source, a lens, and all other 
        parts necessary for operation; and
            ``(B) communicates movement messages to drivers through 
        red, amber, and green colors.
        ``(44) The term `transformer' means a device consisting of 2 or 
    more coils of insulated wire that transfers alternating current by 
    electromagnetic induction from 1 coil to another to change the 
    original voltage or current value.
        ``(45)(A) The term `unit heater' means a self-contained fan-
    type heater designed to be installed within the heated space.
        ``(B) The term `unit heater' does not include a warm air 
    furnace.
        ``(46)(A) The term `high intensity discharge lamp' means an 
    electric-discharge lamp in which--
            ``(i) the light-producing arc is stabilized by bulb wall 
        temperature; and
            ``(ii) the arc tube has a bulb wall loading in excess of 3 
        Watts/cm<SUP>2</SUP>.
        ``(B) The term `high intensity discharge lamp' includes mercury 
    vapor, metal halide, and high-pressure sodium lamps described in 
    subparagraph (A).
        ``(47)(A) The term `mercury vapor lamp' means a high intensity 
    discharge lamp in which the major portion of the light is produced 
    by radiation from mercury operating at a partial pressure in excess 
    of 100,000 Pa (approximately 1 atm).
        ``(B) The term `mercury vapor lamp' includes clear, phosphor-
    coated, and self-ballasted lamps described in subparagraph (A).
        ``(48) The term `mercury vapor lamp ballast' means a device 
    that is designed and marketed to start and operate mercury vapor 
    lamps by providing the necessary voltage and current.
        ``(49) The term `ceiling fan' means a nonportable device that 
    is suspended from a ceiling for circulating air via the rotation of 
    fan blades.
        ``(50) The term `ceiling fan light kit' means equipment 
    designed to provide light from a ceiling fan that can be--
            ``(A) integral, such that the equipment is attached to the 
        ceiling fan prior to the time of retail sale; or
            ``(B) attachable, such that at the time of retail sale the 
        equipment is not physically attached to the ceiling fan, but 
        may be included inside the ceiling fan at the time of sale or 
        sold separately for subsequent attachment to the fan.
        ``(51) The term `medium screw base' means an Edison screw base 
    identified with the prefix E-26 in the `American National Standard 
    for Electric Lamp Bases', ANSI/IEC C81.61-2003, published by the 
    American National Standards Institute.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
        (1) in subsection (b), by adding at the end the following:
    ``(9) Test procedures for illuminated exit signs shall be based on 
the test method used under version 2.0 of the Energy Star program of 
the Environmental Protection Agency for illuminated exit signs.
    ``(10)(A) Test procedures for distribution transformers and low 
voltage dry-type distribution transformers shall be based on the 
`Standard Test Method for Measuring the Energy Consumption of 
Distribution Transformers' prescribed by the National Electrical 
Manufacturers Association (NEMA TP 2-1998).
    ``(B) The Secretary may review and revise the test procedures 
established under subparagraph (A).
    ``(C) For purposes of section 346(a), the test procedures 
established under subparagraph (A) shall be considered to be the 
testing requirements prescribed by the Secretary under section 
346(a)(1) for distribution transformers for which the Secretary makes a 
determination that energy conservation standards would--
        ``(i) be technologically feasible and economically justified; 
    and
        ``(ii) result in significant energy savings.
    ``(11) Test procedures for traffic signal modules and pedestrian 
modules shall be based on the test method used under the Energy Star 
program of the Environmental Protection Agency for traffic signal 
modules, as in effect on the date of enactment of this paragraph.
    ``(12)(A) Test procedures for medium base compact fluorescent lamps 
shall be based on the test methods for compact fluorescent lamps used 
under the August 9, 2001, version of the Energy Star program of the 
Environmental Protection Agency and the Department of Energy.
    ``(B) Except as provided in subparagraph (C), medium base compact 
fluorescent lamps shall meet all test requirements for regulated 
parameters of section 325(cc).
    ``(C) Notwithstanding subparagraph (B), if manufacturers document 
engineering predictions and analysis that support expected attainment 
of lumen maintenance at 40 percent rated life and lamp lifetime, medium 
base compact fluorescent lamps may be marketed before completion of the 
testing of lamp life and lumen maintenance at 40 percent of rated life.
    ``(13) Test procedures for dehumidifiers shall be based on the test 
criteria used under the Energy Star Program Requirements for 
Dehumidifiers developed by the Environmental Protection Agency, as in 
effect on the date of enactment of this paragraph unless revised by the 
Secretary pursuant to this section.
    ``(14) The test procedure for measuring flow rate for commercial 
prerinse spray valves shall be based on American Society for Testing 
and Materials Standard F2324, entitled `Standard Test Method for Pre-
Rinse Spray Valves'.
    ``(15) The test procedure for refrigerated bottled or canned 
beverage vending machines shall be based on American National Standards 
Institute/American Society of Heating, Refrigerating and Air-
Conditioning Engineers Standard 32.1-2004, entitled `Methods of Testing 
for Rating Vending Machines for Bottled, Canned or Other Sealed 
Beverages'.
    ``(16)(A)(i) Test procedures for ceiling fans shall be based on the 
`Energy Star Testing Facility Guidance Manual: Building a Testing 
Facility and Performing the Solid State Test Method for ENERGY STAR 
Qualified Ceiling Fans, Version 1.1' published by the Environmental 
Protection Agency.
    ``(ii) Test procedures for ceiling fan light kits shall be based on 
the test procedures referenced in the Energy Star specifications for 
Residential Light Fixtures and Compact Fluorescent Light Bulbs, as in 
effect on the date of enactment of this paragraph.
    ``(B) The Secretary may review and revise the test procedures 
established under subparagraph (A).''; and
        (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--(1) Not later 
than 2 years after the date of enactment of this subsection, the 
Secretary shall prescribe testing requirements for refrigerated bottled 
or canned beverage vending machines.
    ``(2) To the maximum extent practicable, the testing requirements 
prescribed under paragraph (1) shall be based on existing test 
procedures used in industry.''.
    (c) Standard Setting Authority.--Section 325 of the Energy Policy 
and Conservation Act (42 U.S.C. 6295) is amended--
        (1) in subsection (f)(3), by adding at the end the following:
    ``(D) Notwithstanding any other provision of this Act, if the 
requirements of subsection (o) are met, the Secretary may consider and 
prescribe energy conservation standards or energy use standards for 
electricity used for purposes of circulating air through duct work.'';
        (2) in subsection (g)--
            (A) in paragraph (6)(B), by inserting ``and labeled'' after 
        ``designed''; and
            (B) by adding at the end the following:
    ``(8)(A) Each fluorescent lamp ballast (other than replacement 
ballasts or ballasts described in subparagraph (C))--
        ``(i)(I) manufactured on or after July 1, 2009;
        ``(II) sold by the manufacturer on or after October 1, 2009; or
        ``(III) incorporated into a luminaire by a luminaire 
    manufacturer on or after July 1, 2010; and
        ``(ii) designed--
            ``(I) to operate at nominal input voltages of 120 or 277 
        volts;
            ``(II) to operate with an input current frequency of 60 
        Hertz; and
            ``(III) for use in connection with F34T12 lamps, F96T12/ES 
        lamps, or F96T12HO/ES lamps;
    shall have a power factor of 0.90 or greater and shall have a 
    ballast efficacy factor of not less than the following:

               ..................  Total             ...................
``Application  Ballast             nominal           Ballast
 for           input               lamp              efficacy
 operation of  voltage             watts             factor
One F34T12     120/277             34                2.61
 lamp
Two F34T12     120/277             68                1.35
 lamps
Two F96T12/ES  120/277             120               0.77
 lamps
Two F96T12HO/  120/277             190               0.42.
 ES lamps
 

    ``(B) The standards described in subparagraph (A) shall apply to 
all ballasts covered by subparagraph (A)(ii) that are manufactured on 
or after July 1, 2010, or sold by the manufacturer on or after October 
1, 2010.
    ``(C) The standards described in subparagraph (A) do not apply to--
        ``(i) a ballast that is designed for dimming to 50 percent or 
    less of the maximum output of the ballast;
        ``(ii) a ballast that is designed for use with 2 F96T12HO lamps 
    at ambient temperatures of 20F or less and for use in an outdoor 
    sign; or
        ``(iii) a ballast that has a power factor of less than 0.90 and 
    is designed and labeled for use only in residential 
    applications.'';
        (3) in subsection (o), by adding at the end the following:
    ``(5) The Secretary may set more than 1 energy conservation 
standard for products that serve more than 1 major function by setting 
1 energy conservation standard for each major function.''; and
        (4) by adding at the end the following:
    ``(u) Battery Charger and External Power Supply Electric Energy 
Consumption.--(1)(A) Not later than 18 months after the date of 
enactment of this subsection, the Secretary shall, after providing 
notice and an opportunity for comment, prescribe, by rule, definitions 
and test procedures for the power use of battery chargers and external 
power supplies.
    ``(B) In establishing the test procedures under subparagraph (A), 
the Secretary shall--
        ``(i) consider existing definitions and test procedures used 
    for measuring energy consumption in standby mode and other modes; 
    and
        ``(ii) assess the current and projected future market for 
    battery chargers and external power supplies.
    ``(C) The assessment under subparagraph (B)(ii) shall include--
        ``(i) estimates of the significance of potential energy savings 
    from technical improvements to battery chargers and external power 
    supplies; and
        ``(ii) suggested product classes for energy conservation 
    standards.
    ``(D) Not later than 18 months after the date of enactment of this 
subsection, the Secretary shall hold a scoping workshop to discuss and 
receive comments on plans for developing energy conservation standards 
for energy use for battery chargers and external power supplies.
    ``(E)(i) Not later than 3 years after the date of enactment of this 
subsection, the Secretary shall issue a final rule that determines 
whether energy conservation standards shall be issued for battery 
chargers and external power supplies or classes of battery chargers and 
external power supplies.
    ``(ii) For each product class, any energy conservation standards 
issued under clause (i) shall be set at the lowest level of energy use 
that--
        ``(I) meets the criteria and procedures of subsections (o), 
    (p), (q), (r), (s), and (t); and
        ``(II) would result in significant overall annual energy 
    savings, considering standby mode and other operating modes.
    ``(2) In determining under section 323 whether test procedures and 
energy conservation standards under this section should be revised with 
respect to covered products that are major sources of standby mode 
energy consumption, the Secretary shall consider whether to incorporate 
standby mode into the test procedures and energy conservation 
standards, taking into account standby mode power consumption compared 
to overall product energy consumption.
    ``(3) The Secretary shall not propose an energy conservation 
standard under this section, unless the Secretary has issued applicable 
test procedures for each product under section 323.
    ``(4) Any energy conservation standard issued under this subsection 
shall be applicable to products manufactured or imported beginning on 
the date that is 3 years after the date of issuance.
    ``(5) The Secretary and the Administrator shall collaborate and 
develop programs (including programs under section 324A and other 
voluntary industry agreements or codes of conduct) that are designed to 
reduce standby mode energy use.
    ``(v) Ceiling Fans and Refrigerated Beverage Vending Machines.--(1) 
Not later than 1 year after the date of enactment of this subsection, 
the Secretary shall prescribe, by rule, test procedures and energy 
conservation standards for ceiling fans and ceiling fan light kits. If 
the Secretary sets such standards, the Secretary shall consider 
exempting or setting different standards for certain product classes 
for which the primary standards are not technically feasible or 
economically justified, and establishing separate or exempted product 
classes for highly decorative fans for which air movement performance 
is a secondary design feature.
    ``(2) Not later than 4 years after the date of enactment of this 
subsection, the Secretary shall prescribe, by rule, energy conservation 
standards for refrigerated bottle or canned beverage vending machines.
    ``(3) In establishing energy conservation standards under this 
subsection, the Secretary shall use the criteria and procedures 
prescribed under subsections (o) and (p).
    ``(4) Any energy conservation standard prescribed under this 
subsection shall apply to products manufactured 3 years after the date 
of publication of a final rule establishing the energy conservation 
standard.
    ``(w) Illuminated Exit Signs.--An illuminated exit sign 
manufactured on or after January 1, 2006, shall meet the version 2.0 
Energy Star Program performance requirements for illuminated exit signs 
prescribed by the Environmental Protection Agency.
    ``(x) Torchieres.--A torchiere manufactured on or after January 1, 
2006--
        ``(1) shall consume not more than 190 watts of power; and
        ``(2) shall not be capable of operating with lamps that total 
    more than 190 watts.
    ``(y) Low Voltage Dry-Type Distribution Transformers.--The 
efficiency of a low voltage dry-type distribution transformer 
manufactured on or after January 1, 2007, shall be the Class I 
Efficiency Levels for distribution transformers specified in table 4-2 
of the `Guide for Determining Energy Efficiency for Distribution 
Transformers' published by the National Electrical Manufacturers 
Association (NEMA TP-1-2002).
    ``(z) Traffic Signal Modules and Pedestrian Modules.--Any traffic 
signal module or pedestrian module manufactured on or after January 1, 
2006, shall--
        ``(1) meet the performance requirements used under the Energy 
    Star program of the Environmental Protection Agency for traffic 
    signals, as in effect on the date of enactment of this subsection; 
    and
        ``(2) be installed with compatible, electrically connected 
    signal control interface devices and conflict monitoring systems.
    ``(aa) Unit Heaters.--A unit heater manufactured on or after the 
date that is 3 years after the date of enactment of this subsection 
shall--
        ``(1) be equipped with an intermittent ignition device; and
        ``(2) have power venting or an automatic flue damper.
    ``(bb) Medium Base Compact Fluorescent Lamps.--(1) A bare lamp and 
covered lamp (no reflector) medium base compact fluorescent lamp 
manufactured on or after January 1, 2006, shall meet the following 
requirements prescribed by the August 9, 2001, version of the Energy 
Star Program Requirements for Compact Fluorescent Lamps, Energy Star 
Eligibility Criteria, Energy-Efficiency Specification issued by the 
Environmental Protection Agency and Department of Energy:
        ``(A) Minimum initial efficacy.
        ``(B) Lumen maintenance at 1000 hours.
        ``(C) Lumen maintenance at 40 percent of rated life.
        ``(D) Rapid cycle stress test.
        ``(E) Lamp life.
    ``(2) The Secretary may, by rule, establish requirements for color 
quality (CRI), power factor, operating frequency, and maximum allowable 
start time based on the requirements prescribed by the August 9, 2001, 
version of the Energy Star Program Requirements for Compact Fluorescent 
Lamps.
    ``(3) The Secretary may, by rule--
        ``(A) revise the requirements established under paragraph (2); 
    or
        ``(B) establish other requirements, after considering energy 
    savings, cost effectiveness, and consumer satisfaction.
    ``(cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or after 
October 1, 2007, shall have an Energy Factor that meets or exceeds the 
following values:

``Product Capacity (pints/day):
                                      Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................


                                                                   1.00 

    25.01 - 35.00.............................................


                                                                   1.20 

    35.01 - 54.00.............................................


                                                                   1.30 

    54.01 - 74.99.............................................


                                                                   1.50 

    75.00 or more.............................................


                                                                   2.25.

    ``(2)(A) Not later than October 1, 2009, the Secretary shall 
publish a final rule in accordance with subsections (o) and (p), to 
determine whether the energy conservation standards established under 
paragraph (1) should be amended.
    ``(B) The final rule published under subparagraph (A) shall--
        ``(i) contain any amendment by the Secretary; and
        ``(ii) provide that the amendment applies to products 
    manufactured on or after October 1, 2012.
    ``(C) If the Secretary does not publish an amendment that takes 
effect by October 1, 2012, dehumidifiers manufactured on or after 
October 1, 2012, shall have an Energy Factor that meets or exceeds the 
following values:

``Product Capacity (pints/day):
                                      Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................


                                                                   1.20 

    25.01 - 35.00.............................................


                                                                   1.30 

    35.01 - 45.00.............................................


                                                                   1.40 

    45.01 - 54.00.............................................


                                                                   1.50 

    54.01 - 74.99.............................................


                                                                   1.60 

    75.00 or more.............................................


                                                                    2.5.

    ``(dd) Commercial Prerinse Spray Valves.--Commercial prerinse spray 
valves manufactured on or after January 1, 2006, shall have a flow rate 
of not more than 1.6 gallons per minute.
    ``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp ballasts 
shall not be manufactured or imported after January 1, 2008.
    ``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All ceiling 
fans manufactured on or after January 1, 2007, shall have the following 
features:
        ``(i) Fan speed controls separate from any lighting controls.
        ``(ii) Adjustable speed controls (either more than 1 speed or 
    variable speed).
        ``(iii) Adjustable speed controls (either more than 1 speed or 
    variable speed).
        ``(iv) The capability of reversible fan action, except for--
            ``(I) fans sold for industrial applications;
            ``(II) outdoor applications; and
            ``(III) cases in which safety standards would be violated 
        by the use of the reversible mode.
    ``(B) The Secretary may define the exceptions described in clause 
(iv) in greater detail, but shall not substantively expand the 
exceptions.
    ``(2)(A) Ceiling fan light kits with medium screw base sockets 
manufactured on or after January 1, 2007, shall be packaged with screw-
based lamps to fill all screw base sockets.
    ``(B) The screw-based lamps required under subparagraph (A) shall--
        ``(i) meet the Energy Star Program Requirements for Compact 
    Fluorescent Lamps, version 3.0, issued by the Department of Energy; 
    or
        ``(ii) use light sources other than compact fluorescent lamps 
    that have lumens per watt performance at least equivalent to 
    comparably configured compact fluorescent lamps meeting the Energy 
    Star Program Requirements described in clause (i).
    ``(3) Ceiling fan light kits with pin-based sockets for fluorescent 
lamps manufactured on or after January 1, 2007 shall--
        ``(A) meet the Energy Star Program Requirements for Residential 
    Light Fixtures version 4.0 issued by the Environmental Protection 
    Agency; and
        ``(B) be packaged with lamps to fill all sockets.
    ``(4)(A) By January 1, 2007, the Secretary shall consider and issue 
requirements for any ceiling fan lighting kits other than those covered 
in paragraphs (2) and (3), including candelabra screw base sockets.
    ``(B) The requirements issued under subparagraph (A) shall be 
effective for products manufactured 2 years after the date of the final 
rule.
    ``(C) If the Secretary fails to issue a final rule by the date 
specified in subparagraph (B), any type of ceiling fan lighting kit 
described in subparagraph (A) that is manufactured after January 1, 
2009--
        ``(i) shall not be capable of operating with lamps that total 
    more than 190 watts; and
        ``(ii) shall include the lamps described in clause (i) in the 
    ceiling fan lighting kits.
    ``(5)(A) After January 1, 2010, the Secretary may consider, and 
issue, if the requirements of subsections (o) and (p) are met, amended 
energy efficiency standards for ceiling fan light kits.
    ``(B) Any amended standards issued under subparagraph (A) shall 
apply to products manufactured not earlier than 2 years after the date 
of publication of the final rule establishing the amended standard.
    ``(6)(A) Notwithstanding any other provision of this Act, the 
Secretary may consider, and issue, if the requirements of subsections 
(o) and (p) are met, energy efficiency or energy use standards for 
electricity used by ceiling fans to circulate air in a room.
    ``(B) In issuing the standards under subparagraph (A), the 
Secretary shall consider--
        ``(C) exempting, or setting different standards for, certain 
    product classes for which the primary standards are not technically 
    feasible or economically justified; and
        ``(D) establishing separate exempted product classes for highly 
    decorative fans for which air movement performance is a secondary 
    design feature.
    ``(7) Section 327 shall apply to the products covered in paragraphs 
(1) through (4) beginning on the date of enactment of this subsection, 
except that any State or local labeling requirement for ceiling fans 
prescribed or enacted before the date of enactment of this subsection 
shall not be preempted until the labeling requirements applicable to 
ceiling fans established under section 327 take effect.
    ``(gg) Application Date.--Section 327 applies--
        ``(1) to products for which energy conservation standards are 
    to be established under subsection (l), (u), or (v) beginning on 
    the date on which a final rule is issued by the Secretary, except 
    that any State or local standard prescribed or enacted for the 
    product before the date on which the final rule is issued shall not 
    be preempted until the energy conservation standard established 
    under subsection (l), (u), or (v) for the product takes effect; and
        ``(2) to products for which energy conservation standards are 
    established under subsections (w) through (ff) on the date of 
    enactment of those subsections, except that any State or local 
    standard prescribed or enacted before the date of enactment of 
    those subsections shall not be preempted until the energy 
    conservation standards established under subsections (w) through 
    (ff) take effect.''.
    (d) General Rule of Preemption.--Section 327(c) of the Energy 
Policy and Conservation Act (42 U.S.C. 6297(c)) is amended--
        (1) in paragraph (5), by striking ``or'' at the end;
        (2) in paragraph (6), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(7)(A) is a regulation concerning standards for commercial 
    prerinse spray valves adopted by the California Energy Commission 
    before January 1, 2005; or
        ``(B) is an amendment to a regulation described in subparagraph 
    (A) that was developed to align California regulations with changes 
    in American Society for Testing and Materials Standard F2324;
        ``(8)(A) is a regulation concerning standards for pedestrian 
    modules adopted by the California Energy Commission before January 
    1, 2005; or
        ``(B) is an amendment to a regulation described in subparagraph 
    (A) that was developed to align California regulations to changes 
    in the Institute for Transportation Engineers standards, entitled 
    `Performance Specification: Pedestrian Traffic Control Signal 
    Indications'.''.

SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.

    (a) Definitions.--Section 340 of the Energy Policy and Conservation 
Act (42 U.S.C. 6311) is amended--
        (1) in paragraph (1)--
            (A) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (H) through (K), respectively; and
            (B) by inserting after subparagraph (C) the following:
            ``(D) Very large commercial package air conditioning and 
        heating equipment.
            ``(E) Commercial refrigerators, freezers, and refrigerator-
        freezers.
            ``(F) Automatic commercial ice makers.
            ``(G) Commercial clothes washers.'';
        (2) in paragraph (2)(B), by striking ``small and large 
    commercial package air conditioning and heating equipment'' and 
    inserting ``commercial package air conditioning and heating 
    equipment, commercial refrigerators, freezers, and refrigerator-
    freezers, automatic commercial ice makers, commercial clothes 
    washers'';
        (3) by striking paragraphs (8) and (9) and inserting the 
    following:
        ``(8)(A) The term `commercial package air conditioning and 
    heating equipment' means air-cooled, water-cooled, evaporatively-
    cooled, or water source (not including ground water source) 
    electrically operated, unitary central air conditioners and central 
    air conditioning heat pumps for commercial application.
        ``(B) The term `small commercial package air conditioning and 
    heating equipment' means commercial package air conditioning and 
    heating equipment that is rated below 135,000 Btu per hour (cooling 
    capacity).
        ``(C) The term `large commercial package air conditioning and 
    heating equipment' means commercial package air conditioning and 
    heating equipment that is rated--
            ``(i) at or above 135,000 Btu per hour; and
            ``(ii) below 240,000 Btu per hour (cooling capacity).
        ``(D) The term `very large commercial package air conditioning 
    and heating equipment' means commercial package air conditioning 
    and heating equipment that is rated--
            ``(i) at or above 240,000 Btu per hour; and
            ``(ii) below 760,000 Btu per hour (cooling capacity).
        ``(9)(A) The term `commercial refrigerator, freezer, and 
    refrigerator-freezer' means refrigeration equipment that--
            ``(i) is not a consumer product (as defined in section 
        321);
            ``(ii) is not designed and marketed exclusively for 
        medical, scientific, or research purposes;
            ``(iii) operates at a chilled, frozen, combination chilled 
        and frozen, or variable temperature;
            ``(iv) displays or stores merchandise and other perishable 
        materials horizontally, semivertically, or vertically;
            ``(v) has transparent or solid doors, sliding or hinged 
        doors, a combination of hinged, sliding, transparent, or solid 
        doors, or no doors;
            ``(vi) is designed for pull-down temperature applications 
        or holding temperature applications; and
            ``(vii) is connected to a self-contained condensing unit or 
        to a remote condensing unit.
        ``(B) The term `holding temperature application' means a use of 
    commercial refrigeration equipment other than a pull-down 
    temperature application, except a blast chiller or freezer.
        ``(C) The term `integrated average temperature' means the 
    average temperature of all test package measurements taken during 
    the test.
        ``(D) The term `pull-down temperature application' means a 
    commercial refrigerator with doors that, when fully loaded with 12 
    ounce beverage cans at 90 degrees F, can cool those beverages to an 
    average stable temperature of 38 degrees F in 12 hours or less.
        ``(E) The term `remote condensing unit' means a factory-made 
    assembly of refrigerating components designed to compress and 
    liquefy a specific refrigerant that is remotely located from the 
    refrigerated equipment and consists of one or more refrigerant 
    compressors, refrigerant condensers, condenser fans and motors, and 
    factory supplied accessories.
        ``(F) The term `self-contained condensing unit' means a 
    factory-made assembly of refrigerating components designed to 
    compress and liquefy a specific refrigerant that is an integral 
    part of the refrigerated equipment and consists of one or more 
    refrigerant compressors, refrigerant condensers, condenser fans and 
    motors, and factory supplied accessories.''; and
        (4) by adding at the end the following:
        ``(19) The term `automatic commercial ice maker' means a 
    factory-made assembly (not necessarily shipped in one package) 
    that--
            ``(A) consists of a condensing unit and ice-making section 
        operating as an integrated unit, with means for making and 
        harvesting ice; and
            ``(B) may include means for storing ice, dispensing ice, or 
        storing and dispensing ice.
        ``(20) The term `commercial clothes washer' means a soft-mount 
    front-loading or soft-mount top-loading clothes washer that--
            ``(A) has a clothes container compartment that--
                ``(i) for horizontal-axis clothes washers, is not more 
            than 3.5 cubic feet; and
                ``(ii) for vertical-axis clothes washers, is not more 
            than 4.0 cubic feet; and
            ``(B) is designed for use in--
                ``(i) applications in which the occupants of more than 
            one household will be using the clothes washer, such as 
            multi-family housing common areas and coin laundries; or
                ``(ii) other commercial applications.
        ``(21) The term `harvest rate' means the amount of ice (at 32 
    degrees F) in pounds produced per 24 hours.''.
    (b) Standards for Commercial Package Air Conditioning and Heating 
Equipment.--Section 342(a) of the Energy Policy and Conservation Act 
(42 U.S.C. 6313(a)) is amended--
        (1) in the subsection heading, by striking ``Small and Large'' 
    and inserting ``Small, Large, and Very Large'';
        (2) in paragraph (1), by inserting ``but before January 1, 
    2010,'' after ``January 1, 1994,'';
        (3) in paragraph (2), by inserting ``but before January 1, 
    2010,'' after ``January 1, 1995,''; and
        (4) in paragraph (6)--
            (A) in subparagraph (A)--
                (i) by inserting ``(i)'' after ``(A)'';
                (ii) by striking ``the date of enactment of the Energy 
            Policy Act of 1992'' and inserting ``January 1, 2010'';
                (iii) by inserting after ``large commercial package air 
            conditioning and heating equipment,'' the following: ``and 
            very large commercial package air conditioning and heating 
            equipment, or if ASHRAE/IES Standard 90.1, as in effect on 
            October 24, 1992, is amended with respect to any''; and
                (iv) by adding at the end the following:
    ``(ii) If ASHRAE/IES Standard 90.1 is not amended with respect to 
small commercial package air conditioning and heating equipment, large 
commercial package air conditioning and heating equipment, and very 
large commercial package air conditioning and heating equipment during 
the 5-year period beginning on the effective date of a standard, the 
Secretary may initiate a rulemaking to determine whether a more 
stringent standard--
        ``(I) would result in significant additional conservation of 
    energy; and
        ``(II) is technologically feasible and economically 
    justified.''; and
            (B) in subparagraph (C)(ii), by inserting ``and very large 
        commercial package air conditioning and heating equipment'' 
        after ``large commercial package air conditioning and heating 
        equipment''; and
        (5) by adding at the end the following:
    ``(7) Small commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
        ``(A) The minimum energy efficiency ratio of air-cooled central 
    air conditioners at or above 65,000 Btu per hour (cooling capacity) 
    and less than 135,000 Btu per hour (cooling capacity) shall be--
            ``(i) 11.2 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 11.0 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(B) The minimum energy efficiency ratio of air-cooled central 
    air conditioner heat pumps at or above 65,000 Btu per hour (cooling 
    capacity) and less than 135,000 Btu per hour (cooling capacity) 
    shall be--
            ``(i) 11.0 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 10.8 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(C) The minimum coefficient of performance in the heating 
    mode of air-cooled central air conditioning heat pumps at or above 
    65,000 Btu per hour (cooling capacity) and less than 135,000 Btu 
    per hour (cooling capacity) shall be 3.3 (at a high temperature 
    rating of 47 degrees F db).
    ``(8) Large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
        ``(A) The minimum energy efficiency ratio of air-cooled central 
    air conditioners at or above 135,000 Btu per hour (cooling 
    capacity) and less than 240,000 Btu per hour (cooling capacity) 
    shall be--
            ``(i) 11.0 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 10.8 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(B) The minimum energy efficiency ratio of air-cooled central 
    air conditioner heat pumps at or above 135,000 Btu per hour 
    (cooling capacity) and less than 240,000 Btu per hour (cooling 
    capacity) shall be--
            ``(i) 10.6 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 10.4 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(C) The minimum coefficient of performance in the heating 
    mode of air-cooled central air conditioning heat pumps at or above 
    135,000 Btu per hour (cooling capacity) and less than 240,000 Btu 
    per hour (cooling capacity) shall be 3.2 (at a high temperature 
    rating of 47 degrees F db).
    ``(9) Very large commercial package air conditioning and heating 
equipment manufactured on or after January 1, 2010, shall meet the 
following standards:
        ``(A) The minimum energy efficiency ratio of air-cooled central 
    air conditioners at or above 240,000 Btu per hour (cooling 
    capacity) and less than 760,000 Btu per hour (cooling capacity) 
    shall be--
            ``(i) 10.0 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 9.8 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(B) The minimum energy efficiency ratio of air-cooled central 
    air conditioner heat pumps at or above 240,000 Btu per hour 
    (cooling capacity) and less than 760,000 Btu per hour (cooling 
    capacity) shall be--
            ``(i) 9.5 for equipment with no heating or electric 
        resistance heating; and
            ``(ii) 9.3 for equipment with all other heating system 
        types that are integrated into the equipment (at a standard 
        rating of 95 degrees F db).
        ``(C) The minimum coefficient of performance in the heating 
    mode of air-cooled central air conditioning heat pumps at or above 
    240,000 Btu per hour (cooling capacity) and less than 760,000 Btu 
    per hour (cooling capacity) shall be 3.2 (at a high temperature 
    rating of 47 degrees F db).''.
    (c) Standards for Commercial Refrigerators, Freezers, and 
Refrigerator-Freezers.--Section 342 of the Energy Policy and 
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the 
following:
    ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
        ``(A) The term `AV' means the adjusted volume (ft<SUP>3</SUP>) 
    (defined as 1.63 x frozen temperature compartment volume 
    (ft<SUP>3</SUP>) + chilled temperature compartment volume 
    (ft<SUP>3</SUP>)) with compartment volumes measured in accordance 
    with the Association of Home Appliance Manufacturers Standard HRF1-
    1979.
        ``(B) The term `V' means the chilled or frozen compartment 
    volume (ft<SUP>3</SUP>) (as defined in the Association of Home 
    Appliance Manufacturers Standard HRF1-1979).
        ``(C) Other terms have such meanings as may be established by 
    the Secretary, based on industry-accepted definitions and practice.
    ``(2) Each commercial refrigerator, freezer, and refrigerator-
freezer with a self-contained condensing unit designed for holding 
temperature applications manufactured on or after January 1, 2010, 
shall have a daily energy consumption (in kilowatt hours per day) that 
does not exceed the following:

 
 
 
  Refrigerators with solid doors..  0.10 V + 2.04
  Refrigerators with transparent    0.12 V + 3.34
   doors.
  Freezers with solid doors.......  0.40 V + 1.38
  Freezers with transparent doors.  0.75 V + 4.10
  Refrigerators/freezers with       0.27 AV - 0.71 or 0.70.
   solid doors the greater of.


    ``(3) Each commercial refrigerator with a self-contained condensing 
unit designed for pull-down temperature applications and transparent 
doors manufactured on or after January 1, 2010, shall have a daily 
energy consumption (in kilowatt hours per day) of not more than 0.126 V 
+ 3.51.
    ``(4)(A) Not later than January 1, 2009, the Secretary shall issue, 
by rule, standard levels for ice-cream freezers, self-contained 
commercial refrigerators, freezers, and refrigerator-freezers without 
doors, and remote condensing commercial refrigerators, freezers, and 
refrigerator-freezers, with the standard levels effective for equipment 
manufactured on or after January 1, 2012.
    ``(B) The Secretary may issue, by rule, standard levels for other 
types of commercial refrigerators, freezers, and refrigerator-freezers 
not covered by paragraph (2)(A) with the standard levels effective for 
equipment manufactured 3 or more years after the date on which the 
final rule is published.
    ``(5)(A) Not later than January 1, 2013, the Secretary shall issue 
a final rule to determine whether the standards established under this 
subsection should be amended.
    ``(B) Not later than 3 years after the effective date of any 
amended standards under subparagraph (A) or the publication of a final 
rule determining that the standards should not be amended, the 
Secretary shall issue a final rule to determine whether the standards 
established under this subsection or the amended standards, as 
applicable, should be amended.
    ``(C) If the Secretary issues a final rule under subparagraph (A) 
or (B) establishing amended standards, the final rule shall provide 
that the amended standards apply to products manufactured on or after 
the date that is--
        ``(i) 3 years after the date on which the final amended 
    standard is published; or
        ``(ii) if the Secretary determines, by rule, that 3 years is 
    inadequate, not later than 5 years after the date on which the 
    final rule is published.''.
    (d) Standards for Automatic Commercial Ice Makers.--Section 342 of 
the Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by 
subsection (c)) is amended by adding at the end the following:
    ``(d) Automatic Commercial Ice Makers.--(1) Each automatic 
commercial ice maker that produces cube type ice with capacities 
between 50 and 2500 pounds per 24-hour period when tested according to 
the test standard established in section 343(a)(7) and is manufactured 
on or after January 1, 2010, shall meet the following standard levels:
---------------------------------------------------------------------------
  

------------------------------------------------------------------------
                                           Harvest   Maximum    Maximum
                                            Rate     Energy    Condenser
        Equipment Type           Type of  (lbs ice/ Use (kWh/  Water Use
                                 Cooling     24      100 lbs   (gal/100
                                           hours)     Ice)     lbs Ice)
------------------------------------------------------------------------
Ice Making Head                 Water     <500      7.80-0.0  200-0.022H
                                                     055H
                                         -------------------------------
                                          500 and   5.58-0.0  200-0.022H
                                           <1436     011H
                                         -------------------------------
                                          1436      4.0       200-0.022H
------------------------------------------------------------------------
Ice Making Head                 Air       <450      10.26-0.  Not
                                                     0086H     Applicabl
                                                               e
                                         -------------------------------
                                          450       6.89-0.0  Not
                                                     011H      Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <1000     8.85-0.0  Not
(but not remote                                      038H      Applicabl
compressor)                                                    e
                                         -------------------------------
                                          1000      5.10      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Remote Condensing               Air       <934      8.85-0.0  Not
and Remote                                           038H      Applicabl
Compressor                                                     e
                                         -------------------------------
                                          934       5.3       Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
Self Contained                  Water     <200      11.40-0.  191-0.0315
                                                     019H      H
                                         -------------------------------
                                          200       7.60      191-0.0315
                                                               H
------------------------------------------------------------------------
Self Contained                  Air       <175      18.0-0.0  Not
                                                     469H      Applicabl
                                                               e
                                         -------------------------------
                                          175       9.80      Not
                                                               Applicabl
                                                               e
------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water
  used to make ice.

    ``(2)(A) The Secretary may issue, by rule, standard levels for 
types of automatic commercial ice makers that are not covered by 
paragraph (1).
    ``(B) The standards established under subparagraph (A) shall apply 
to products manufactured on or after the date that is--
        ``(i) 3 years after the date on which the rule is published 
    under subparagraph (A); or
        ``(ii) if the Secretary determines, by rule, that 3 years is 
    inadequate, not later than 5 years after the date on which the 
    final rule is published.
    ``(3)(A) Not later than January 1, 2015, with respect to the 
standards established under paragraph (1), and, with respect to the 
standards established under paragraph (2), not later than 5 years after 
the date on which the standards take effect, the Secretary shall issue 
a final rule to determine whether amending the applicable standards is 
technologically feasible and economically justified.
    ``(B) Not later than 5 years after the effective date of any 
amended standards under subparagraph (A) or the publication of a final 
rule determining that amending the standards is not technologically 
feasible or economically justified, the Secretary shall issue a final 
rule to determine whether amending the standards established under 
paragraph (1) or the amended standards, as applicable, is 
technologically feasible or economically justified.
    ``(C) If the Secretary issues a final rule under subparagraph (A) 
or (B) establishing amended standards, the final rule shall provide 
that the amended standards apply to products manufactured on or after 
the date that is--
        ``(i) 3 years after the date on which the final amended 
    standard is published; or
        ``(ii) if the Secretary determines, by rule, that 3 years is 
    inadequate, not later than 5 years after the date on which the 
    final amended standard is published.
    ``(4) A final rule issued under paragraph (2) or (3) shall 
establish standards at the maximum level that is technically feasible 
and economically justified, as provided in subsections (o) and (p) of 
section 325.''.
    (e) Standards for Commercial Clothes Washers.--Section 342 of the 
Energy Policy and Conservation Act (42 U.S.C. 6313) (as amended by 
subsection (d)) is amended by adding at the end the following:
    ``(e) Commercial Clothes Washers.--(1) Each commercial clothes 
washer manufactured on or after January 1, 2007, shall have--
        ``(A) a Modified Energy Factor of at least 1.26; and
        ``(B) a Water Factor of not more than 9.5.
    ``(2)(A)(i) Not later than January 1, 2010, the Secretary shall 
publish a final rule to determine whether the standards established 
under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide that any 
amended standard shall apply to products manufactured 3 years after the 
date on which the final amended standard is published.
    ``(B)(i) Not later than January 1, 2015, the Secretary shall 
publish a final rule to determine whether the standards established 
under paragraph (1) should be amended.
    ``(ii) The rule published under clause (i) shall provide that any 
amended standard shall apply to products manufactured 3 years after the 
date on which the final amended standard is published.''.
    (f) Test Procedures.--Section 343 of the Energy Policy and 
Conservation Act (42 U.S.C. 6314) is amended--
        (1) in subsection (a)--
            (A) in paragraph (4)--
                (i) in subparagraph (A), by inserting ``very large 
            commercial package air conditioning and heating 
            equipment,'' after ``large commercial package air 
            conditioning and heating equipment,''; and
                (ii) in subparagraph (B), by inserting ``very large 
            commercial package air conditioning and heating 
            equipment,'' after ``large commercial package air 
            conditioning and heating equipment,''; and
            (B) by adding at the end the following:
    ``(6)(A)(i) In the case of commercial refrigerators, freezers, and 
refrigerator-freezers, the test procedures shall be--
        ``(I) the test procedures determined by the Secretary to be 
    generally accepted industry testing procedures; or
        ``(II) rating procedures developed or recognized by the ASHRAE 
    or by the American National Standards Institute.
    ``(ii) In the case of self-contained refrigerators, freezers, and 
refrigerator-freezers to which standards are applicable under 
paragraphs (2) and (3) of section 342(c), the initial test procedures 
shall be the ASHRAE 117 test procedure that is in effect on January 1, 
2005.
    ``(B)(i) In the case of commercial refrigerators, freezers, and 
refrigerator-freezers with doors covered by the standards adopted in 
February 2002, by the California Energy Commission, the rating 
temperatures shall be the integrated average temperature of 38 degrees 
F (<plus-minus> 2 degrees F) for refrigerator compartments and 0 
degrees F (<plus-minus> 2 degrees F) for freezer compartments.
    ``(C) The Secretary shall issue a rule in accordance with 
paragraphs (2) and (3) to establish the appropriate rating temperatures 
for the other products for which standards will be established under 
section 342(c)(4).
    ``(D) In establishing the appropriate test temperatures under this 
subparagraph, the Secretary shall follow the procedures and meet the 
requirements under section 323(e).
    ``(E)(i) Not later than 180 days after the publication of the new 
ASHRAE 117 test procedure, if the ASHRAE 117 test procedure for 
commercial refrigerators, freezers, and refrigerator-freezers is 
amended, the Secretary shall, by rule, amend the test procedure for the 
product as necessary to ensure that the test procedure is consistent 
with the amended ASHRAE 117 test procedure, unless the Secretary makes 
a determination, by rule, and supported by clear and convincing 
evidence, that to do so would not meet the requirements for test 
procedures under paragraphs (2) and (3).
    ``(ii) If the Secretary determines that 180 days is an insufficient 
period during which to review and adopt the amended test procedure or 
rating procedure under clause (i), the Secretary shall publish a notice 
in the Federal Register stating the intent of the Secretary to wait not 
longer than 1 additional year before putting into effect an amended 
test procedure or rating procedure.
    ``(F)(i) If a test procedure other than the ASHRAE 117 test 
procedure is approved by the American National Standards Institute, the 
Secretary shall, by rule--
        ``(I) review the relative strengths and weaknesses of the new 
    test procedure relative to the ASHRAE 117 test procedure; and
        ``(II) based on that review, adopt one new test procedure for 
    use in the standards program.
    ``(ii) If a new test procedure is adopted under clause (i)--
        ``(I) section 323(e) shall apply; and
        ``(II) subparagraph (B) shall apply to the adopted test 
    procedure.
    ``(7)(A) In the case of automatic commercial ice makers, the test 
procedures shall be the test procedures specified in Air-Conditioning 
and Refrigeration Institute Standard 810-2003, as in effect on January 
1, 2005.
    ``(B)(i) If Air-Conditioning and Refrigeration Institute Standard 
810-2003 is amended, the Secretary shall amend the test procedures 
established in subparagraph (A) as necessary to be consistent with the 
amended Air-Conditioning and Refrigeration Institute Standard, unless 
the Secretary determines, by rule, published in the Federal Register 
and supported by clear and convincing evidence, that to do so would not 
meet the requirements for test procedures under paragraphs (2) and (3).
    ``(ii) If the Secretary issues a rule under clause (i) containing a 
determination described in clause (ii), the rule may establish an 
amended test procedure for the product that meets the requirements of 
paragraphs (2) and (3).
    ``(C) The Secretary shall comply with section 323(e) in 
establishing any amended test procedure under this paragraph.
    ``(8) With respect to commercial clothes washers, the test 
procedures shall be the same as the test procedures established by the 
Secretary for residential clothes washers under section 325(g).''; and
        (2) in subsection (d)(1), by inserting ``very large commercial 
    package air conditioning and heating equipment, commercial 
    refrigerators, freezers, and refrigerator-freezers, automatic 
    commercial ice makers, commercial clothes washers,'' after ``large 
    commercial package air conditioning and heating equipment,''.
    (g) Labeling.--Section 344(e) of the Energy Policy and Conservation 
Act (42 U.S.C. 6315(e)) is amended by inserting ``very large commercial 
package air conditioning and heating equipment, commercial 
refrigerators, freezers, and refrigerator-freezers, automatic 
commercial ice makers, commercial clothes washers,'' after ``large 
commercial package air conditioning and heating equipment,'' each place 
it appears.
    (h) Administration, Penalties, Enforcement, and Preemption.--
Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 6316) 
is amended--
        (1) in subsection (a)--
            (A) in paragraph (7), by striking ``and'' at the end;
            (B) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(9) in the case of commercial clothes washers, section 
    327(b)(1) shall be applied as if the National Appliance Energy 
    Conservation Act of 1987 was the Energy Policy Act of 2005.'';
        (2) in the first sentence of subsection (b)(1), by striking 
    ``part B'' and inserting ``part A''; and
        (3) by adding at the end the following:
    ``(d)(1) Except as provided in paragraphs (2) and (3), section 327 
shall apply with respect to very large commercial package air 
conditioning and heating equipment to the same extent and in the same 
manner as section 327 applies under part A on the date of enactment of 
this subsection.
    ``(2) Any State or local standard issued before the date of 
enactment of this subsection shall not be preempted until the standards 
established under section 342(a)(9) take effect on January 1, 2010.
    ``(e)(1)(A) Subsections (a), (b), and (d) of section 326, 
subsections (m) through (s) of section 325, and sections 328 through 
336 shall apply with respect to commercial refrigerators, freezers, and 
refrigerator-freezers to the same extent and in the same manner as 
those provisions apply under part A.
    ``(B) In applying those provisions to commercial refrigerators, 
freezers, and refrigerator-freezers, paragraphs (1), (2), (3), and (4) 
of subsection (a) shall apply.
    ``(2)(A) Section 327 shall apply to commercial refrigerators, 
freezers, and refrigerator-freezers for which standards are established 
under paragraphs (2) and (3) of section 342(c) to the same extent and 
in the same manner as those provisions apply under part A on the date 
of enactment of this subsection, except that any State or local 
standard issued before the date of enactment of this subsection shall 
not be preempted until the standards established under paragraphs (2) 
and (3) of section 342(c) take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(3)(A) Section 327 shall apply to commercial refrigerators, 
freezers, and refrigerator-freezers for which standards are established 
under section 342(c)(4) to the same extent and in the same manner as 
the provisions apply under part A on the date of publication of the 
final rule by the Secretary, except that any State or local standard 
issued before the date of publication of the final rule by the 
Secretary shall not be preempted until the standards take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(4)(A) If the Secretary does not issue a final rule for a 
specific type of commercial refrigerator, freezer, or refrigerator-
freezer within the time frame specified in section 342(c)(5), 
subsections (b) and (c) of section 327 shall not apply to that specific 
type of refrigerator, freezer, or refrigerator-freezer for the period 
beginning on the date that is 2 years after the scheduled date for a 
final rule and ending on the date on which the Secretary publishes a 
final rule covering the specific type of refrigerator, freezer, or 
refrigerator-freezer.
    ``(B) Any State or local standard issued before the date of 
publication of the final rule shall not be preempted until the final 
rule takes effect.
    ``(5)(A) In the case of any commercial refrigerator, freezer, or 
refrigerator-freezer to which standards are applicable under paragraphs 
(2) and (3) of section 342(c), the Secretary shall require 
manufacturers to certify, through an independent, nationally recognized 
testing or certification program, that the commercial refrigerator, 
freezer, or refrigerator-freezer meets the applicable standard.
    ``(B) The Secretary shall, to the maximum extent practicable, 
encourage the establishment of at least 2 independent testing and 
certification programs.
    ``(C) As part of certification, information on equipment energy use 
and interior volume shall be made available to the Secretary.
    ``(f)(1)(A)(i) Except as provided in clause (ii), section 327 shall 
apply to automatic commercial ice makers for which standards have been 
established under section 342(d)(1) to the same extent and in the same 
manner as the section applies under part A on the date of enactment of 
this subsection.
    ``(ii) Any State standard issued before the date of enactment of 
this subsection shall not be preempted until the standards established 
under section 342(d)(1) take effect.
    ``(B) In applying section 327 to the equipment under subparagraph 
(A), paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(2)(A)(i) Except as provided in clause (ii), section 327 shall 
apply to automatic commercial ice makers for which standards have been 
established under section 342(d)(2) to the same extent and in the same 
manner as the section applies under part A on the date of publication 
of the final rule by the Secretary.
    ``(ii) Any State standard issued before the date of publication of 
the final rule by the Secretary shall not be preempted until the 
standards established under section 342(d)(2) take effect.
    ``(B) In applying section 327 in accordance with subparagraph (A), 
paragraphs (1), (2), and (3) of subsection (a) shall apply.
    ``(3)(A) If the Secretary does not issue a final rule for a 
specific type of automatic commercial ice maker within the time frame 
specified in section 342(d), subsections (b) and (c) of section 327 
shall no longer apply to the specific type of automatic commercial ice 
maker for the period beginning on the day after the scheduled date for 
a final rule and ending on the date on which the Secretary publishes a 
final rule covering the specific type of automatic commercial ice 
maker.
    ``(B) Any State standard issued before the publication of the final 
rule shall not be preempted until the standards established in the 
final rule take effect.
    ``(4)(A) The Secretary shall monitor whether manufacturers are 
reducing harvest rates below tested values for the purpose of bringing 
non-complying equipment into compliance.
    ``(B) If the Secretary finds that there has been a substantial 
amount of manipulation with respect to harvest rates under subparagraph 
(A), the Secretary shall take steps to minimize the manipulation, such 
as requiring harvest rates to be within 5 percent of tested values.
    ``(g)(1)(A) If the Secretary does not issue a final rule for 
commercial clothes washers within the timeframe specified in section 
342(e)(2), subsections (b) and (c) of section 327 shall not apply to 
commercial clothes washers for the period beginning on the day after 
the scheduled date for a final rule and ending on the date on which the 
Secretary publishes a final rule covering commercial clothes washers.
    ``(B) Any State or local standard issued before the date on which 
the Secretary publishes a final rule shall not be preempted until the 
standards established under section 342(e)(2) take effect.
    ``(2) The Secretary shall undertake an educational program to 
inform owners of laundromats, multifamily housing, and other sites 
where commercial clothes washers are located about the new standard, 
including impacts on washer purchase costs and options for recovering 
those costs through coin collection.''.

SEC. 137. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Section 324(a)(2) of the Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding at the end the following:
    ``(F)(i) Not later than 90 days after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to consider--
        ``(I) the effectiveness of the consumer products labeling 
    program in assisting consumers in making purchasing decisions and 
    improving energy efficiency; and
        ``(II) changes to the labeling rules (including categorical 
    labeling) that would improve the effectiveness of consumer product 
    labels.
    ``(ii) Not later than 2 years after the date of enactment of this 
subparagraph, the Commission shall complete the rulemaking initiated 
under clause (i).
    ``(G)(i) Not later than 18 months after the date of enactment of 
this subparagraph, the Commission shall issue by rule, in accordance 
with this section, labeling requirements for the electricity used by 
ceiling fans to circulate air in a room.
    ``(ii) The rule issued under clause (i) shall apply to products 
manufactured after the later of--
        ``(I) January 1, 2009; or
        ``(II) the date that is 60 days after the final rule is 
    issued.''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
amended by adding at the end the following:
    ``(5)(A) For covered products described in subsections (u) through 
(ff) of section 325, after a test procedure has been prescribed under 
section 323, the Secretary or the Commission, as appropriate, may 
prescribe, by rule, under this section labeling requirements for the 
products.
    ``(B) In the case of products to which TP-1 standards under section 
325(y) apply, labeling requirements shall be based on the `Standard for 
the Labeling of Distribution Transformer Efficiency' prescribed by the 
National Electrical Manufacturers Association (NEMA TP-3) as in effect 
on the date of enactment of this paragraph.
    ``(C) In the case of dehumidifiers covered under section 325(dd), 
the Commission shall not require an `Energy Guide' label.''.

SEC. 138. INTERMITTENT ESCALATOR STUDY.

    (a) In General.--The Administrator of General Services shall 
conduct a study on the advantages and disadvantages of employing 
intermittent escalators in the United States.
    (b) Contents.--Such study shall include an analysis of--
        (1) the energy end-cost savings derived from the use of 
    intermittent escalators;
        (2) the cost savings derived from reduced maintenance 
    requirements; and
        (3) such other issues as the Administrator considers 
    appropriate.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall transmit to Congress a 
report on the results of the study.
    (d) Definition.--For purposes of this section, the term 
``intermittent escalator'' means an escalator that remains in a 
stationary position until it automatically operates at the approach of 
a passenger, returning to a stationary position after the passenger 
completes passage.

SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in consultation with the National 
Association of Regulatory Utility Commissioners and the National 
Association of State Energy Officials, shall conduct a study of State 
and regional policies that promote cost-effective programs to reduce 
energy consumption (including energy efficiency programs) that are 
carried out by--
        (1) utilities that are subject to State regulation; and
        (2) nonregulated utilities.
    (b) Consideration.--In conducting the study under subsection (a), 
the Secretary shall take into consideration--
        (1) performance standards for achieving energy use and demand 
    reduction targets;
        (2) funding sources, including rate surcharges;
        (3) infrastructure planning approaches (including energy 
    efficiency programs) and infrastructure improvements;
        (4) the costs and benefits of consumer education programs 
    conducted by State and local governments and local utilities to 
    increase consumer awareness of energy efficiency technologies and 
    measures; and
        (5) methods of--
            (A) removing disincentives for utilities to implement 
        energy efficiency programs;
            (B) encouraging utilities to undertake voluntary energy 
        efficiency programs; and
            (C) ensuring appropriate returns on energy efficiency 
        programs.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
includes--
        (1) the findings of the study; and
        (2) any recommendations of the Secretary, including 
    recommendations on model policies to promote energy efficiency 
    programs.

SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

    (a) In General.--The Secretary shall establish a pilot program 
under which the Secretary provides financial assistance to at least 3, 
but not more than 7, States to carry out pilot projects in the States 
for--
        (1) planning and adopting statewide programs that encourage, 
    for each year in which the pilot project is carried out--
            (A) energy efficiency; and
            (B) reduction of consumption of electricity or natural gas 
        in the State by at least 0.75 percent, as compared to a 
        baseline determined by the Secretary for the period preceding 
        the implementation of the program; or
        (2) for any State that has adopted a statewide program as of 
    the date of enactment of this Act, activities that reduce energy 
    consumption in the State by expanding and improving the program.
    (b) Verification.--A State that receives financial assistance under 
subsection (a)(1) shall submit to the Secretary independent 
verification of any energy savings achieved through the statewide 
program.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010, to remain available until expended.

SEC. 141. REPORT ON FAILURE TO COMPLY WITH DEADLINES FOR NEW OR REVISED 
              ENERGY CONSERVATION STANDARDS.

    (a) Initial Report.--The Secretary shall submit a report to 
Congress regarding each new or revised energy conservation or water use 
standard which the Secretary has failed to issue in conformance with 
the deadlines established in the Energy Policy and Conservation Act. 
Such report shall state the reasons why the Secretary has failed to 
comply with the deadline for issuances of the new or revised standard 
and set forth the Secretary's plan for expeditiously prescribing such 
new or revised standard. The Secretary's initial report shall be 
submitted not later than 6 months following enactment of this Act and 
subsequent reports shall be submitted whenever the Secretary determines 
that additional deadlines for issuance of new or revised standards have 
been missed.
    (b) Implementation Report.--Every 6 months following the submission 
of a report under subsection (a) until the adoption of a new or revised 
standard described in such report, the Secretary shall submit to the 
Congress an implementation report describing the Secretary's progress 
in implementing the Secretary's plan or the issuance of the new or 
revised standard.

                       Subtitle D--Public Housing

SEC. 151. PUBLIC HOUSING CAPITAL FUND.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) is amended--
        (1) in subsection (d)(1)--
            (A) in subparagraph (I), by striking ``and'' at the end;
            (B) in subparagraph (J), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following new subparagraphs:
            ``(K) improvement of energy and water-use efficiency by 
        installing fixtures and fittings that conform to the American 
        Society of Mechanical Engineers/American National Standards 
        Institute standards A112.19.2-1998 and A112.18.1-2000, or any 
        revision thereto, applicable at the time of installation, and 
        by increasing energy efficiency and water conservation by such 
        other means as the Secretary determines are appropriate; and
            ``(L) integrated utility management and capital planning to 
        maximize energy conservation and efficiency measures.''; and
        (2) in subsection (e)(2)(C)--
            (A) by striking ``The'' and inserting the following:
                ``(i) In general.--The''; and
            (B) by adding at the end the following:
                ``(ii) Third party contracts.--Contracts described in 
            clause (i) may include contracts for equipment conversions 
            to less costly utility sources, projects with resident-paid 
            utilities, and adjustments to frozen base year consumption, 
            including systems repaired to meet applicable building and 
            safety codes and adjustments for occupancy rates increased 
            by rehabilitation.
                ``(iii) Term of contract.--The total term of a contract 
            described in clause (i) shall not exceed 20 years to allow 
            longer payback periods for retrofits, including windows, 
            heating system replacements, wall insulation, site-based 
            generation, advanced energy savings technologies, including 
            renewable energy generation, and other such retrofits.''.

SEC. 152. ENERGY-EFFICIENT APPLIANCES.

    In purchasing appliances, a public housing agency shall purchase 
energy-efficient appliances that are Energy Star products or FEMP-
designated products, as such terms are defined in section 553 of the 
National Energy Conservation Policy Act, unless the purchase of energy-
efficient appliances is not cost-effective to the agency.

SEC. 153. ENERGY EFFICIENCY STANDARDS.

    Section 109 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12709) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)--
                (i) by striking ``1 year after the date of the 
            enactment of the Energy Policy Act of 1992'' and inserting 
            ``September 30, 2006'';
                (ii) in subparagraph (A), by striking ``and'' at the 
            end;
                (iii) in subparagraph (B), by striking the period at 
            the end and inserting ``; and''; and
                (iv) by adding at the end the following:
            ``(C) rehabilitation and new construction of public and 
        assisted housing funded by HOPE VI revitalization grants under 
        section 24 of the United States Housing Act of 1937 (42 U.S.C. 
        1437v), where such standards are determined to be cost 
        effective by the Secretary of Housing and Urban Development.''; 
        and
            (B) in paragraph (2), by inserting ``, and, with respect to 
        rehabilitation and new construction of public and assisted 
        housing funded by HOPE VI revitalization grants under section 
        24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), 
        the 2003 International Energy Conservation Code'' after ``90.1-
        1989')'';
        (2) in subsection (b)--
            (A) by striking ``within 1 year after the date of the 
        enactment of the Energy Policy Act of 1992'' and inserting ``by 
        September 30, 2006''; and
            (B) by inserting ``, and, with respect to rehabilitation 
        and new construction of public and assisted housing funded by 
        HOPE VI revitalization grants under section 24 of the United 
        States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
        International Energy Conservation Code'' before the period at 
        the end; and
        (3) in subsection (c)--
            (A) in the heading, by inserting ``and the International 
        Energy Conservation Code'' after ``Model Energy Code''; and
            (B) by inserting ``, or, with respect to rehabilitation and 
        new construction of public and assisted housing funded by HOPE 
        VI revitalization grants under section 24 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437v), the 2003 International 
        Energy Conservation Code'' after ``1989''.

SEC. 154. ENERGY STRATEGY FOR HUD.

    The Secretary of Housing and Urban Development shall develop and 
implement an integrated strategy to reduce utility expenses through 
cost-effective energy conservation and efficiency measures and energy 
efficient design and construction of public and assisted housing. The 
energy strategy shall include the development of energy reduction goals 
and incentives for public housing agencies. The Secretary shall submit 
a report to Congress, not later than 1 year after the date of the 
enactment of this Act, on the energy strategy and the actions taken by 
the Department of Housing and Urban Development to monitor the energy 
usage of public housing agencies and shall submit an update every 2 
years thereafter on progress in implementing the strategy.

                       TITLE II--RENEWABLE ENERGY
                     Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 6 months after the date of 
enactment of this Act, and each year thereafter, the Secretary shall 
review the available assessments of renewable energy resources within 
the United States, including solar, wind, biomass, ocean (including 
tidal, wave, current, and thermal), geothermal, and hydroelectric 
energy resources, and undertake new assessments as necessary, taking 
into account changes in market conditions, available technologies, and 
other relevant factors.
    (b) Contents of Reports.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter, the Secretary shall 
publish a report based on the assessment under subsection (a). The 
report shall contain--
        (1) a detailed inventory describing the available amount and 
    characteristics of the renewable energy resources; and
        (2) such other information as the Secretary believes would be 
    useful in developing such renewable energy resources, including 
    descriptions of surrounding terrain, population and load centers, 
    nearby energy infrastructure, location of energy and water 
    resources, and available estimates of the costs needed to develop 
    each resource, together with an identification of any barriers to 
    providing adequate transmission for remote sources of renewable 
    energy resources to current and emerging markets, recommendations 
    for removing or addressing such barriers, and ways to provide 
    access to the grid that do not unfairly disadvantage renewable or 
    other energy producers.
    (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$10,000,000 for each of fiscal years 2006 through 2010.

SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended--
        (1) by striking the last sentence;
        (2) by designating the first, second, and third sentences as 
    paragraphs (1), (2), and (3), respectively;
        (3) in paragraph (3) (as so designated), by striking ``and 
    which satisfies'' and all that follows through ``deems necessary''; 
    and
        (4) by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), if there are insufficient 
appropriations to make full payments for electric production from all 
qualified renewable energy facilities for a fiscal year, the Secretary 
shall assign--
        ``(i) 60 percent of appropriated funds for the fiscal year to 
    facilities that use solar, wind, ocean (including tidal, wave, 
    current, and thermal), geothermal, or closed-loop (dedicated energy 
    crops) biomass technologies to generate electricity; and
        ``(ii) 40 percent of appropriated funds for the fiscal year to 
    other projects.
    ``(B) After submitting to Congress an explanation of the reasons 
for the alteration, the Secretary may alter the percentage requirements 
of subparagraph (A).''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
        (1) by striking ``a State or any political'' and all that 
    follows through ``nonprofit electrical cooperative'' and inserting 
    ``a not-for-profit electric cooperative, a public utility described 
    in section 115 of the Internal Revenue Code of 1986, a State, 
    Commonwealth, territory, or possession of the United States, or the 
    District of Columbia, or a political subdivision thereof, an Indian 
    tribal government or subdivision thereof, or a Native Corporation 
    (as defined in section 3 of the Alaska Native Claims Settlement Act 
    (43 U.S.C. 1602)),''; and
        (2) by inserting ``landfill gas, livestock methane, ocean 
    (including tidal, wave, current, and thermal),'' after ``wind, 
    biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring 
after the enactment of this section'' and inserting ``before October 1, 
2016''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy Act of 
1992 (42 U.S.C. 13317(d)) is amended in the second sentence by 
inserting ``, or in which the Secretary determines that all necessary 
Federal and State authorizations have been obtained to begin 
construction of the facility'' after ``eligible for such payments''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first sentence by 
inserting ``landfill gas, livestock methane, ocean (including tidal, 
wave, current, and thermal),'' after ``wind, biomass,''.
    (f) Termination of Authority.--Section 1212(f) of the Energy Policy 
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking ``the 
expiration of'' and all that follows through ``of this section'' and 
inserting ``September 30, 2026''.
    (g) Authorization of Appropriations.--Section 1212 of the Energy 
Policy Act of 1992 (42 U.S.C. 13317) is amended by striking subsection 
(g) and inserting the following:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2006 through 2026, to remain available until 
expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the Secretary, 
shall seek to ensure that, to the extent economically feasible and 
technically practicable, of the total amount of electric energy the 
Federal Government consumes during any fiscal year, the following 
amounts shall be renewable energy:
        (1) Not less than 3 percent in fiscal years 2007 through 2009.
        (2) Not less than 5 percent in fiscal years 2010 through 2012.
        (3) Not less than 7.5 percent in fiscal year 2013 and each 
    fiscal year thereafter.
    (b) Definitions.--In this section:
        (1) Biomass.--The term ``biomass'' means any lignin waste 
    material that is segregated from other waste materials and is 
    determined to be nonhazardous by the Administrator of the 
    Environmental Protection Agency and any solid, nonhazardous, 
    cellulosic material that is derived from--
            (A) any of the following forest-related resources: mill 
        residues, precommercial thinnings, slash, and brush, or 
        nonmerchantable material;
            (B) solid wood waste materials, including waste pallets, 
        crates, dunnage, manufacturing and construction wood wastes 
        (other than pressure-treated, chemically-treated, or painted 
        wood wastes), and landscape or right-of-way tree trimmings, but 
        not including municipal solid waste (garbage), gas derived from 
        the biodegradation of solid waste, or paper that is commonly 
        recycled;
            (C) agriculture wastes, including orchard tree crops, 
        vineyard, grain, legumes, sugar, and other crop by-products or 
        residues, and livestock waste nutrients; or
            (D) a plant that is grown exclusively as a fuel for the 
        production of electricity.
        (2) Renewable energy.--The term ``renewable energy'' means 
    electric energy generated from solar, wind, biomass, landfill gas, 
    ocean (including tidal, wave, current, and thermal), geothermal, 
    municipal solid waste, or new hydroelectric generation capacity 
    achieved from increased efficiency or additions of new capacity at 
    an existing hydroelectric project.
    (c) Calculation.--For purposes of determining compliance with the 
requirement of this section, the amount of renewable energy shall be 
doubled if--
        (1) the renewable energy is produced and used on-site at a 
    Federal facility;
        (2) the renewable energy is produced on Federal lands and used 
    at a Federal facility; or
        (3) the renewable energy is produced on Indian land as defined 
    in title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et 
    seq.) and used at a Federal facility.
    (d) Report.--Not later than April 15, 2007, and every 2 years 
thereafter, the Secretary shall provide a report to Congress on the 
progress of the Federal Government in meeting the goals established by 
this section.

SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Subchapter VI of chapter 31 of title 40, United 
States Code, is amended by adding at the end the following:

``Sec. 3177. Use of photovoltaic energy in public buildings

    ``(a) Photovoltaic Energy Commercialization Program.--
        ``(1) In general.--The Administrator of General Services may 
    establish a photovoltaic energy commercialization program for the 
    procurement and installation of photovoltaic solar electric systems 
    for electric production in new and existing public buildings.
        ``(2) Purposes.--The purposes of the program shall be to 
    accomplish the following:
            ``(A) To accelerate the growth of a commercially viable 
        photovoltaic industry to make this energy system available to 
        the general public as an option which can reduce the national 
        consumption of fossil fuel.
            ``(B) To reduce the fossil fuel consumption and costs of 
        the Federal Government.
            ``(C) To attain the goal of installing solar energy systems 
        in 20,000 Federal buildings by 2010, as contained in the 
        Federal Government's Million Solar Roof Initiative of 1997.
            ``(D) To stimulate the general use within the Federal 
        Government of life-cycle costing and innovative procurement 
        methods.
            ``(E) To develop program performance data to support policy 
        decisions on future incentive programs with respect to energy.
        ``(3) Acquisition of photovoltaic solar electric systems.--
            ``(A) In general.--The program shall provide for the 
        acquisition of photovoltaic solar electric systems and 
        associated storage capability for use in public buildings.
            ``(B) Acquisition levels.--The acquisition of photovoltaic 
        electric systems shall be at a level substantial enough to 
        allow use of low-cost production techniques with at least 150 
        megawatts (peak) cumulative acquired during the 5 years of the 
        program.
        ``(4) Administration.--The Administrator shall administer the 
    program and shall--
            ``(A) issue such rules and regulations as may be 
        appropriate to monitor and assess the performance and operation 
        of photovoltaic solar electric systems installed pursuant to 
        this subsection;
            ``(B) develop innovative procurement strategies for the 
        acquisition of such systems; and
            ``(C) transmit to Congress an annual report on the results 
        of the program.
    ``(b) Photovoltaic Systems Evaluation Program.--
        ``(1) In general.--Not later than 60 days after the date of 
    enactment of this section, the Administrator shall establish a 
    photovoltaic solar energy systems evaluation program to evaluate 
    such photovoltaic solar energy systems as are required in public 
    buildings.
        ``(2) Program requirement.--In evaluating photovoltaic solar 
    energy systems under the program, the Administrator shall ensure 
    that such systems reflect the most advanced technology.
    ``(c) Authorization of Appropriations.--
        ``(1) Photovoltaic energy commercialization program.--There are 
    authorized to be appropriated to carry out subsection (a) 
    $50,000,000 for each of fiscal years 2006 through 2010. Such sums 
    shall remain available until expended.
        ``(2) Photovoltaic systems evaluation program.--There are 
    authorized to be appropriated to carry out subsection (b) 
    $10,000,000 for each of fiscal years 2006 through 2010. Such sums 
    shall remain available until expended.''.
    (b) Conforming Amendment.--The table of sections for the National 
Energy Conservation Policy Act is amended by inserting after the item 
relating to section 569 the following:

``Sec. 570. Use of photovoltaic energy in public buildings.''.

SEC. 205. BIOBASED PRODUCTS.

    Section 9002(c)(1) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8102(c)(1)) is amended by inserting ``or such items that 
comply with the regulations issued under section 103 of Public Law 100-
556 (42 U.S.C. 6914b-1)'' after ``practicable''.

SEC. 206. RENEWABLE ENERGY SECURITY.

    (a) Weatherization Assistance.--Section 415(c) of the Energy 
Conservation and Production Act (42 U.S.C. 6865(c)) is amended--
        (1) in paragraph (1), by striking ``in paragraph (3)'' and 
    inserting ``in paragraphs (3) and (4)'';
        (2) in paragraph (3), by striking ``$2,500 per dwelling unit 
    average provided in paragraph (1)'' and inserting ``dwelling unit 
    averages provided in paragraphs (1) and (4)''; and
        (3) by adding at the end the following new paragraphs:
    ``(4) The expenditure of financial assistance provided under this 
part for labor, weatherization materials, and related matters for a 
renewable energy system shall not exceed an average of $3,000 per 
dwelling unit.
    ``(5)(A) The Secretary shall by regulations--
        ``(i) establish the criteria which are to be used in 
    prescribing performance and quality standards under paragraph 
    (6)(A)(ii) or in specifying any form of renewable energy under 
    paragraph (6)(A)(i)(I); and
        ``(ii) establish a procedure under which a manufacturer of an 
    item may request the Secretary to certify that the item will be 
    treated, for purposes of this paragraph, as a renewable energy 
    system.
    ``(B) The Secretary shall make a final determination with respect 
to any request filed under subparagraph (A)(ii) within 1 year after the 
filing of the request, together with any information required to be 
filed with such request under subparagraph (A)(ii).
    ``(C) Each month the Secretary shall publish a report of any 
request under subparagraph (A)(ii) which has been denied during the 
preceding month and the reasons for the denial.
    ``(D) The Secretary shall not specify any form of renewable energy 
under paragraph (6)(A)(i)(I) unless the Secretary determines that--
        ``(i) there will be a reduction in oil or natural gas 
    consumption as a result of such specification;
        ``(ii) such specification will not result in an increased use 
    of any item which is known to be, or reasonably suspected to be, 
    environmentally hazardous or a threat to public health or safety; 
    and
        ``(iii) available Federal subsidies do not make such 
    specification unnecessary or inappropriate (in the light of the 
    most advantageous allocation of economic resources).
    ``(6) In this subsection--
        ``(A) the term `renewable energy system' means a system which--
            ``(i) when installed in connection with a dwelling, 
        transmits or uses--
                ``(I) solar energy, energy derived from the geothermal 
            deposits, energy derived from biomass, or any other form of 
            renewable energy which the Secretary specifies by 
            regulations, for the purpose of heating or cooling such 
            dwelling or providing hot water or electricity for use 
            within such dwelling; or
                ``(II) wind energy for nonbusiness residential 
            purposes;
            ``(ii) meets the performance and quality standards (if any) 
        which have been prescribed by the Secretary by regulations;
            ``(iii) in the case of a combustion rated system, has a 
        thermal efficiency rating of at least 75 percent; and
            ``(iv) in the case of a solar system, has a thermal 
        efficiency rating of at least 15 percent; and
        ``(B) the term `biomass' means any organic matter that is 
    available on a renewable or recurring basis, including agricultural 
    crops and trees, wood and wood wastes and residues, plants 
    (including aquatic plants), grasses, residues, fibers, and animal 
    wastes, municipal wastes, and other waste materials.''.
    (b) District Heating and Cooling Programs.--Section 172 of the 
Energy Policy Act of 1992 (42 U.S.C. 13451 note) is amended--
        (1) in subsection (a)--
            (A) by striking ``and'' at the end of paragraph (3);
            (B) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (C) by adding at the end the following new paragraph:
        ``(5) evaluate the use of renewable energy systems (as such 
    term is defined in section 415(c) of the Energy Conservation and 
    Production Act (42 U.S.C. 6865(c))) in residential buildings.''; 
    and
        (2) in subsection (b), by striking ``this Act'' and inserting 
    ``the Energy Policy Act of 2005''.
    (c) Rebate Program.--
        (1) Establishment.--The Secretary shall establish a program 
    providing rebates for consumers for expenditures made for the 
    installation of a renewable energy system in connection with a 
    dwelling unit or small business.
        (2) Amount of rebate.--Rebates provided under the program 
    established under paragraph (1) shall be in an amount not to exceed 
    the lesser of--
            (A) 25 percent of the expenditures described in paragraph 
        (1) made by the consumer; or
            (B) $3,000.
        (3) Definition.--For purposes of this subsection, the term 
    ``renewable energy system'' has the meaning given that term in 
    section 415(c)(6)(A) of the Energy Conservation and Production Act 
    (42 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) of this 
    section.
        (4) Authorization of appropriations.--There are authorized to 
    be appropriated to the Secretary for carrying out this subsection, 
    to remain available until expended--
            (A) $150,000,000 for fiscal year 2006;
            (B) $150,000,000 for fiscal year 2007;
            (C) $200,000,000 for fiscal year 2008;
            (D) $250,000,000 for fiscal year 2009; and
            (E) $250,000,000 for fiscal year 2010.
    (d) Renewable Fuel Inventory.--Not later than 180 days after the 
date of enactment of this Act, the Secretary shall transmit to Congress 
a report containing--
        (1) an inventory of renewable fuels available for consumers; 
    and
        (2) a projection of future inventories of renewable fuels based 
    on the incentives provided in this section.

SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.

    There is authorized to be appropriated to the General Services 
Administration to install a photovoltaic system, as set forth in the 
Sun Wall Design Project, for the headquarters building of the 
Department of Energy located at 1000 Independence Avenue Southwest in 
the District of Columbia, commonly know as the Forrestal Building, 
$20,000,000 for fiscal year 2006. Such sums shall remain available 
until expended.

SEC. 208. SUGAR CANE ETHANOL PROGRAM.

    (a) Definition of Program.--In this section, the term ``program'' 
means the Sugar Cane Ethanol Program established by subsection (b).
    (b) Establishment.--There is established within the Environmental 
Protection Agency a program to be known as the ``Sugar Cane Ethanol 
Program''.
    (c) Project.--
        (1) In general.--Subject to the availability of appropriations 
    under subsection (d), in carrying out the program, the 
    Administrator of the Environmental Protection Agency shall 
    establish a project that is--
            (A) carried out in multiple States--
                (i) in each of which is produced cane sugar that is 
            eligible for loans under section 156 of the Federal 
            Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
            7272), or a similar subsequent authority; and
                (ii) at the option of each such State, that have an 
            incentive program that requires the use of ethanol in the 
            State; and
            (B) designed to study the production of ethanol from cane 
        sugar, sugarcane, and sugarcane byproducts.
        (2) Requirements.--A project described in paragraph (1) shall--
            (A) be limited to sugar producers and the production of 
        ethanol in the States of Florida, Louisiana, Texas, and Hawaii, 
        divided equally among the States, to demonstrate that the 
        process may be applicable to cane sugar, sugarcane, and 
        sugarcane byproducts;
            (B) include information on the ways in which the scale of 
        production may be replicated once the sugar cane industry has 
        located sites for, and constructed, ethanol production 
        facilities; and
            (C) not last more than 3 years.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $36,000,000, to remain available 
until expended.

SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

    The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 
et seq.) is amended in title VI by adding at the end the following:

``SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.

    ``(a) Definitions.--In this section:
        ``(1) The term `eligible grantee' means a local government or 
    municipality, peoples' utility district, irrigation district, and 
    cooperative, nonprofit, or limited-dividend association in a rural 
    area.
        ``(2) The term `incremental hydropower' means additional 
    generation achieved from increased efficiency after January 1, 
    2005, at a hydroelectric dam that was placed in service before 
    January 1, 2005.
        ``(3) The term `renewable energy' means electricity generated 
    from--
            ``(A) a renewable energy source; or
            ``(B) hydrogen, other than hydrogen produced from a fossil 
        fuel, that is produced from a renewable energy source.
        ``(4) The term `renewable energy source' means--
            ``(A) wind;
            ``(B) ocean waves;
            ``(C) biomass;
            ``(D) solar;
            ``(E) landfill gas;
            ``(F) incremental hydropower;
            ``(G) livestock methane; or
            ``(H) geothermal energy.
        ``(5) The term `rural area' means a city, town, or 
    unincorporated area that has a population of not more than 10,000 
    inhabitants.
    ``(b) Grants.--The Secretary, in consultation with the Secretary of 
Agriculture and the Secretary of the Interior, may provide grants under 
this section to eligible grantees for the purpose of--
        ``(1) increasing energy efficiency, siting or upgrading 
    transmission and distribution lines serving rural areas; or
        ``(2) providing or modernizing electric generation facilities 
    that serve rural areas.
    ``(c) Grant Administration.--(1) The Secretary shall make grants 
under this section based on a determination of cost-effectiveness and 
the most effective use of the funds to achieve the purposes described 
in subsection (b).
    ``(2) For each fiscal year, the Secretary shall allocate grant 
funds under this section equally between the purposes described in 
paragraphs (1) and (2) of subsection (b).
    ``(3) In making grants for the purposes described in subsection 
(b)(2), the Secretary shall give preference to renewable energy 
facilities.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $20,000,000 for 
each of fiscal years 2006 through 2012.''.

SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
              ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, AND 
              OTHER COMMERCIAL PURPOSES.

    (a) Definitions.--In this section:
        (1) Biomass.--The term ``biomass'' means nonmerchantable 
    materials or precommercial thinnings that are byproducts of 
    preventive treatments, such as trees, wood, brush, thinnings, 
    chips, and slash, that are removed--
            (A) to reduce hazardous fuels;
            (B) to reduce or contain disease or insect infestation; or
            (C) to restore forest health.
        (2) Indian tribe.--The term ``Indian tribe'' has the meaning 
    given the term in section 4(e) of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 450b(e)).
        (3) Nonmerchantable.--For purposes of subsection (b), the term 
    ``nonmerchantable'' means that portion of the byproducts of 
    preventive treatments that would not otherwise be used for higher 
    value products.
        (4) Person.--The term ``person'' includes--
            (A) an individual;
            (B) a community (as determined by the Secretary concerned);
            (C) an Indian tribe;
            (D) a small business or a corporation that is incorporated 
        in the United States; and
            (E) a nonprofit organization.
        (5) Preferred community.--The term ``preferred community'' 
    means--
            (A) any Indian tribe;
            (B) any town, township, municipality, or other similar unit 
        of local government (as determined by the Secretary concerned) 
        that--
                (i) has a population of not more than 50,000 
            individuals; and
                (ii) the Secretary concerned, in the sole discretion of 
            the Secretary concerned, determines contains or is located 
            near Federal or Indian land, the condition of which is at 
            significant risk of catastrophic wildfire, disease, or 
            insect infestation or which suffers from disease or insect 
            infestation; or
            (C) any county that--
                (i) is not contained within a metropolitan statistical 
            area; and
                (ii) the Secretary concerned, in the sole discretion of 
            the Secretary concerned, determines contains or is located 
            near Federal or Indian land, the condition of which is at 
            significant risk of catastrophic wildfire, disease, or 
            insect infestation or which suffers from disease or insect 
            infestation.
        (6) Secretary concerned.--The term ``Secretary concerned'' 
    means the Secretary of Agriculture or the Secretary of the 
    Interior.
    (b) Biomass Commercial Use Grant Program.--
        (1) In general.--The Secretary concerned may make grants to any 
    person in a preferred community that owns or operates a facility 
    that uses biomass as a raw material to produce electric energy, 
    sensible heat, or transportation fuels to offset the costs incurred 
    to purchase biomass for use by such facility.
        (2) Grant amounts.--A grant under this subsection may not 
    exceed $20 per green ton of biomass delivered.
        (3) Monitoring of grant recipient activities.--As a condition 
    of a grant under this subsection, the grant recipient shall keep 
    such records as the Secretary concerned may require to fully and 
    correctly disclose the use of the grant funds and all transactions 
    involved in the purchase of biomass. Upon notice by a 
    representative of the Secretary concerned, the grant recipient 
    shall afford the representative reasonable access to the facility 
    that purchases or uses biomass and an opportunity to examine the 
    inventory and records of the facility.
    (c) Improved Biomass Use Grant Program.--
        (1) In general.--The Secretary concerned may make grants to 
    persons to offset the cost of projects to develop or research 
    opportunities to improve the use of, or add value to, biomass. In 
    making such grants, the Secretary concerned shall give preference 
    to persons in preferred communities.
        (2) Selection.--The Secretary concerned shall select a grant 
    recipient under paragraph (1) after giving consideration to--
            (A) the anticipated public benefits of the project, 
        including the potential to develop thermal or electric energy 
        resources or affordable energy;
            (B) opportunities for the creation or expansion of small 
        businesses and micro-businesses;
            (C) the potential for new job creation;
            (D) the potential for the project to improve efficiency or 
        develop cleaner technologies for biomass utilization; and
            (E) the potential for the project to reduce the hazardous 
        fuels from the areas in greatest need of treatment.
        (3) Grant amount.--A grant under this subsection may not exceed 
    $500,000.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated $50,000,000 for each of the fiscal years 2006 through 2016 
to carry out this section.
    (e) Report.--Not later than October 1, 2010, the Secretary of 
Agriculture, in consultation with the Secretary of the Interior, shall 
submit to the Committee on Energy and Natural Resources and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate, and 
the Committee on Resources, the Committee on Energy and Commerce, and 
the Committee on Agriculture of the House of Representatives, a report 
describing the results of the grant programs authorized by this 
section. The report shall include the following:
        (1) An identification of the size, type, and use of biomass by 
    persons that receive grants under this section.
        (2) The distance between the land from which the biomass was 
    removed and the facility that used the biomass.
        (3) The economic impacts, particularly new job creation, 
    resulting from the grants to and operation of the eligible 
    operations.

SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF 
              ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON PUBLIC 
              LANDS.

    It is the sense of the Congress that the Secretary of the Interior 
should, before the end of the 10-year period beginning on the date of 
enactment of this Act, seek to have approved non-hydropower renewable 
energy projects located on the public lands with a generation capacity 
of at least 10,000 megawatts of electricity.

                     Subtitle B--Geothermal Energy

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``John Rishel Geothermal Steam 
Act Amendments of 2005''.

SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.

    Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is 
amended to read as follows:

``SEC. 4. LEASING PROCEDURES.

    ``(a) Nominations.--The Secretary shall accept nominations of land 
to be leased at any time from qualified companies and individuals under 
this Act.
    ``(b) Competitive Lease Sale Required.--
        ``(1) In general.--Except as otherwise specifically provided by 
    this Act, all land to be leased that is not subject to leasing 
    under subsection (c) shall be leased as provided in this subsection 
    to the highest responsible qualified bidder, as determined by the 
    Secretary.
        ``(2) Competitive lease sales.--The Secretary shall hold a 
    competitive lease sale at least once every 2 years for land in a 
    State that has nominations pending under subsection (a) if the land 
    is otherwise available for leasing.
        ``(3) Lands subject to mining claims.--Lands that are subject 
    to a mining claim for which a plan of operations has been approved 
    by the relevant Federal land management agency may be available for 
    noncompetitive leasing under this section to the mining claim 
    holder.
    ``(c) Noncompetitive Leasing.--The Secretary shall make available 
for a period of 2 years for noncompetitive leasing any tract for which 
a competitive lease sale is held, but for which the Secretary does not 
receive any bids in a competitive lease sale.
    ``(d) Pending Lease Applications.--
        ``(1) In general.--It shall be a priority for the Secretary, 
    and for the Secretary of Agriculture with respect to National 
    Forest Systems land, to ensure timely completion of administrative 
    actions, including amendments to applicable forest plans and 
    resource management plans, necessary to process applications for 
    geothermal leasing pending on the date of enactment of this 
    subsection. All future forest plans and resource management plans 
    for areas with high geothermal resource potential shall consider 
    geothermal leasing and development.
        ``(2) Administration.--An application described in paragraph 
    (1) and any lease issued pursuant to the application--
            ``(A) except as provided in subparagraph (B), shall be 
        subject to this section as in effect on the day before the date 
        of enactment of this paragraph; or
            ``(B) at the election of the applicant, shall be subject to 
        this section as in effect on the effective date of this 
        paragraph.
    ``(e) Leases Sold as a Block.--If information is available to the 
Secretary indicating a geothermal resource that could be produced as 1 
unit can reasonably be expected to underlie more than 1 parcel to be 
offered in a competitive lease sale, the parcels for such a resource 
may be offered for bidding as a block in the competitive lease sale.''.

SEC. 223. DIRECT USE.

    (a) Fees for Direct Use.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) is amended--
        (1) in subsection (c), by redesignating paragraphs (1) and (2) 
    as subparagraphs (A) and (B), respectively;
        (2) by redesignating subsections (a) through (d) as paragraphs 
    (1) through (4), respectively;
        (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; and
        (4) by adding at the end the following:
    ``(b) Direct Use.--
        ``(1) In general.--Notwithstanding subsection (a)(1), the 
    Secretary shall establish a schedule of fees, in lieu of royalties 
    for geothermal resources, that a lessee or its affiliate--
            ``(A) uses for a purpose other than the commercial 
        generation of electricity; and
            ``(B) does not sell.
        ``(2) Schedule of fees.--The schedule of fees--
            ``(A) may be based on the quantity or thermal content, or 
        both, of geothermal resources used;
            ``(B) shall ensure a fair return to the United States for 
        use of the resource; and
            ``(C) shall encourage development of the resource.
        ``(3) State, tribal, or local governments.--If a State, tribal, 
    or local government is the lessee and uses geothermal resources 
    without sale and for public purposes other than commercial 
    generation of electricity, the Secretary shall charge only a 
    nominal fee for use of the resource.
        ``(4) Final regulation.--In issuing any final regulation 
    establishing a schedule of fees under this subsection, the 
    Secretary shall seek--
            ``(A) to provide lessees with a simplified administrative 
        system;
            ``(B) to facilitate development of direct use of geothermal 
        resources; and
            ``(C) to contribute to sustainable economic development 
        opportunities in the area.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1003) (as amended by section 222) is further amended 
by adding at the end the following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify areas in 
which the land to be leased under this Act exclusively for direct use 
of geothermal resources, without sale for purposes other than 
commercial generation of electricity, may be leased to any qualified 
applicant that first applies for such a lease under regulations issued 
by the Secretary, if the Secretary--
        ``(1) publishes a notice of the land proposed for leasing not 
    later than 90 days before the date of the issuance of the lease;
        ``(2) does not receive during the 90-day period beginning on 
    the date of the publication any nomination to include the land 
    concerned in the next competitive lease sale; and
        ``(3) determines there is no competitive interest in the 
    geothermal resources in the land to be leased.
    ``(g) Area Subject to Lease for Direct Use.--
        ``(1) In general.--Subject to paragraph (2), a geothermal lease 
    for the direct use of geothermal resources shall cover not more 
    than the quantity of acreage determined by the Secretary to be 
    reasonably necessary for the proposed use.
        ``(2) Limitations.--The quantity of acreage covered by the 
    lease shall not exceed the limitations established under section 
    7.''.
    (c) Application of New Lease Terms.--The schedule of fees 
established under the amendment made by subsection (a)(4) shall apply 
with respect to payments under a lease converted under this subsection 
that are due and owing, and have been paid, on or after July 16, 2003. 
This subsection shall not require the refund of royalties paid to a 
State under section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1019) prior to the date of enactment of this Act.

SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

    (a) Royalty.--Section 5 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1004) is further amended--
        (1) in subsection (a) by striking paragraph (1) and inserting 
    the following:
        ``(1) a royalty on electricity produced using geothermal 
    resources, other than direct use of geothermal resources, that 
    shall be--
            ``(A) not less than 1 percent and not more than 2.5 percent 
        of the gross proceeds from the sale of electricity produced 
        from such resources during the first 10 years of production 
        under the lease; and
            ``(B) not less than 2 and not more than 5 percent of the 
        gross proceeds from the sale of electricity produced from such 
        resources during each year after such 10-year period;''; and
        (2) by adding at the end the following:
    ``(c) Final Regulation Establishing Royalty Rates.--In issuing any 
final regulation establishing royalty rates under this section, the 
Secretary shall seek--
        ``(1) to provide lessees a simplified administrative system;
        ``(2) to encourage new development; and
        ``(3) to achieve the same level of royalty revenues over a 10-
    year period as the regulation in effect on the date of enactment of 
    this subsection.
    ``(d) Credits for In-Kind Payments of Electricity.--The Secretary 
may provide to a lessee a credit against royalties owed under this Act, 
in an amount equal to the value of electricity provided under contract 
to a State or county government that is entitled to a portion of such 
royalties under section 20 of this Act, section 35 of the Mineral 
Leasing Act (30 U.S.C. 191), except as otherwise provided by this 
section, or section 6 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 355), if--
        ``(1) the Secretary has approved in advance the contract 
    between the lessee and the State or county government for such in-
    kind payments;
        ``(2) the contract establishes a specific methodology to 
    determine the value of such credits; and
        ``(3) the maximum credit will be equal to the royalty value 
    owed to the State or county that is a party to the contract and the 
    electricity received will serve as the royalty payment from the 
    Federal Government to that entity.''.
    (b) Disposal of Moneys From Sales, Bonuses, Royalties, and Rents.--
Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is 
amended to read as follows:

``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND 
              ROYALTIES.

    ``(a) In General.--Except with respect to lands in the State of 
Alaska, all monies received by the United States from sales, bonuses, 
rentals, and royalties under this Act shall be paid into the Treasury 
of the United States. Of amounts deposited under this subsection, 
subject to the provisions of subsection (b) of section 35 of the 
Mineral Leasing Act (30 U.S.C. 191(b)) and section 5(a)(2) of this 
Act--
        ``(1) 50 percent shall be paid to the State within the 
    boundaries of which the leased lands or geothermal resources are or 
    were located; and
        ``(2) 25 percent shall be paid to the county within the 
    boundaries of which the leased lands or geothermal resources are or 
    were located.
    ``(b) Use of Payments.--Amounts paid to a State or county under 
subsection (a) shall be used consistent with the terms of section 35 of 
the Mineral Leasing Act (30 U.S.C. 191).''.
    (c) Near-Term Production Incentive for Existing Leases.--
        (1) In general.--Notwithstanding section 5(a) of the Geothermal 
    Steam Act of 1970, the royalty required to be paid shall be 50 
    percent of the amount of the royalty otherwise required, on any 
    lease issued before the date of enactment of this Act that does not 
    convert to new royalty terms under subsection (e)--
            (A) with respect to commercial production of energy from a 
        facility that begins such production in the 6-year period 
        beginning on the date of enactment of this Act; or
            (B) on qualified expansion geothermal energy.
        (2) 4-year application.--Paragraph (1) applies only to new 
    commercial production of energy from a facility in the first 4 
    years of such production.
    (d) Definition of Qualified Expansion Geothermal Energy.--In this 
section, the term ``qualified expansion geothermal energy'' means 
geothermal energy produced from a generation facility for which--
        (1) the production is increased by more than 10 percent as a 
    result of expansion of the facility carried out in the 6-year 
    period beginning on the date of enactment of this Act; and
        (2) such production increase is greater than 10 percent of the 
    average production by the facility during the 5-year period 
    preceding the expansion of the facility (as such average is 
    adjusted to reflect any trend in changes in production during that 
    period).
    (e) Royalty Under Existing Leases.--
        (1) In general.--Any lessee under a lease issued under the 
    Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before the 
    date of enactment of this Act may, within the time period specified 
    in paragraph (2), submit to the Secretary of the Interior a request 
    to modify the terms of the lease relating to payment of royalties 
    to provide--
            (A) in the case of a lease that meets the requirements of 
        subsection (b) of section 5 of the Geothermal Steam Act of 1970 
        (30 U.S.C. 1004) (as amended by section 223), that royalties be 
        based on the schedule of fees established under that section; 
        and
            (B) in the case of any other lease, that royalties be 
        computed on a percentage of the gross proceeds from the sale of 
        electricity, at a royalty rate that is expected to yield total 
        royalty payments equivalent to payments that would have been 
        received for comparable production under the royalty rate in 
        effect for the lease before the date of enactment of this 
        subsection.
        (2) Timing.--A request for a modification under paragraph (1) 
    shall be submitted to the Secretary of the Interior by the date 
    that is not later than--
            (A) in the case of a lease for direct use, 18 months after 
        the effective date of the schedule of fees established by the 
        Secretary of the Interior under section 5 of the Geothermal 
        Steam Act of 1970 (30 U.S.C. 1004); or
            (B) in the case of any other lease, 18 months after the 
        effective date of the final regulation issued under subsection 
        (a).
        (3) Application of modification.--If the lessee requests 
    modification of a lease under paragraph (1)--
            (A) the Secretary of the Interior shall, within 180 days 
        after the receipt of the request for modification, modify the 
        lease to comply with--
                (i) in the case of a lease for direct use, the schedule 
            of fees established by the Secretary under section 5 of the 
            Geothermal Steam Act of 1970 (30 U.S.C. 1004); or
                (ii) in the case of any other lease, the royalty for 
            the lease established under paragraph (1)(B); and
            (B) the modification shall apply to any use of geothermal 
        resources to which subsection (a) applies that occurs after the 
        date of the modification.
        (4) Consultation.--The Secretary of the Interior shall consult 
    with the State and local governments affected by any proposed 
    changes in lease royalty terms under this subsection.

SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL 
              LANDS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of the Interior and the 
Secretary of Agriculture shall enter into and submit to Congress a 
memorandum of understanding in accordance with this section, the 
Geothermal Steam Act of 1970 (as amended by this Act), and other 
applicable laws, regarding coordination of leasing and permitting for 
geothermal development of public lands and National Forest System lands 
under their respective jurisdictions.
    (b) Lease and Permit Applications.--The memorandum of understanding 
shall--
        (1) establish an administrative procedure for processing 
    geothermal lease applications, including lines of authority, steps 
    in application processing, and time limits for application 
    procession;
        (2) establish a 5-year program for geothermal leasing of lands 
    in the National Forest System, and a process for updating that 
    program every 5 years; and
        (3) establish a program for reducing the backlog of geothermal 
    lease application pending on January 1, 2005, by 90 percent within 
    the 5-year period beginning on the date of enactment of this Act, 
    including, as necessary, by issuing leases, rejecting lease 
    applications for failure to comply with the provisions of the 
    regulations under which they were filed, or determining that an 
    original applicant (or the applicant's assigns, heirs, or estate) 
    is no longer interested in pursuing the lease application.
    (c) Data Retrieval System.--The memorandum of understanding shall 
establish a joint data retrieval system that is capable of tracking 
lease and permit applications and providing to the applicant 
information as to their status within the Departments of the Interior 
and Agriculture, including an estimate of the time required for 
administrative action.

SEC. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

    Not later than 3 years after the date of enactment of this Act and 
thereafter as the availability of data and developments in technology 
warrants, the Secretary of the Interior, acting through the Director of 
the United States Geological Survey and in cooperation with the States, 
shall--
        (1) update the Assessment of Geothermal Resources made during 
    1978; and
        (2) submit to Congress the updated assessment.

SEC. 227. COOPERATIVE OR UNIT PLANS.

    Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 1017) is 
amended to read as follows:

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

    ``(a) Adoption of Units by Lessees.--
        ``(1) In general.--For the purpose of more properly conserving 
    the natural resources of any geothermal reservoir, field, or like 
    area, or any part thereof (whether or not any part of the 
    geothermal reservoir, field, or like area, is subject to any 
    cooperative plan of development or operation (referred to in this 
    section as a `unit agreement')), lessees thereof and their 
    representatives may unite with each other, or jointly or separately 
    with others, in collectively adopting and operating under a unit 
    agreement for the reservoir, field, or like area, or any part 
    thereof, including direct use resources, if determined and 
    certified by the Secretary to be necessary or advisable in the 
    public interest.
        ``(2) Majority interest of single leases.--A majority interest 
    of owners of any single lease shall have the authority to commit 
    the lease to a unit agreement.
        ``(3) Initiative of secretary.--The Secretary may also initiate 
    the formation of a unit agreement, or require an existing Federal 
    lease to commit to a unit agreement, if in the public interest.
        ``(4) Modification of lease requirements by secretary.--
            ``(A) In general.--The Secretary may, in the discretion of 
        the Secretary and with the consent of the holders of leases 
        involved, establish, alter, change, or revoke rates of 
        operations (including drilling, operations, production, and 
        other requirements) of the leases and make conditions with 
        respect to the leases, with the consent of the lessees, in 
        connection with the creation and operation of any such unit 
        agreement as the Secretary may consider necessary or advisable 
        to secure the protection of the public interest.
            ``(B) Unlike terms or rates.--Leases with unlike lease 
        terms or royalty rates shall not be required to be modified to 
        be in the same unit.
    ``(b) Requirement of Plans Under New Leases.--The Secretary may--
        ``(1) provide that geothermal leases issued under this Act 
    shall contain a provision requiring the lessee to operate under a 
    unit agreement; and
        ``(2) prescribe the unit agreement under which the lessee shall 
    operate, which shall adequately protect the rights of all parties 
    in interest, including the United States.
    ``(c) Modification of Rate of Prospecting, Development, and 
Production.--The Secretary may require that any unit agreement 
authorized by this section that applies to land owned by the United 
States contain a provision under which authority is vested in the 
Secretary, or any person, committee, or State or Federal officer or 
agency as may be designated in the unit agreement to alter or modify, 
from time to time, the rate of prospecting and development and the 
quantity and rate of production under the unit agreement.
    ``(d) Exclusion From Determination of Holding or Control.--Any land 
that is subject to a unit agreement approved or prescribed by the 
Secretary under this section shall not be considered in determining 
holdings or control under section 7.
    ``(e) Pooling of Certain Land.--If separate tracts of land cannot 
be independently developed and operated to use geothermal resources 
pursuant to any section of this Act--
        ``(1) the land, or a portion of the land, may be pooled with 
    other land, whether or not owned by the United States, for purposes 
    of development and operation under a communitization agreement 
    providing for an apportionment of production or royalties among the 
    separate tracts of land comprising the production unit, if the 
    pooling is determined by the Secretary to be in the public 
    interest; and
        ``(2) operation or production pursuant to the communitization 
    agreement shall be treated as operation or production with respect 
    to each tract of land that is subject to the communitization 
    agreement.
    ``(f) Unit Agreement Review.--
        ``(1) In general.--Not later than 5 years after the date of 
    approval of any unit agreement and at least every 5 years 
    thereafter, the Secretary shall--
            ``(A) review each unit agreement; and
            ``(B) after notice and opportunity for comment, eliminate 
        from inclusion in the unit agreement any land that the 
        Secretary determines is not reasonably necessary for unit 
        operations under the unit agreement.
        ``(2) Basis for elimination.--The elimination shall--
            ``(A) be based on scientific evidence; and
            ``(B) occur only if the elimination is determined by the 
        Secretary to be for the purpose of conserving and properly 
        managing the geothermal resource.
        ``(3) Extension.--Any land eliminated under this subsection 
    shall be eligible for an extension under section 6(g) if the land 
    meets the requirements for the extension.
    ``(g) Drilling or Development Contracts.--
        ``(1) In general.--The Secretary may, on such conditions as the 
    Secretary may prescribe, approve drilling or development contracts 
    made by one or more lessees of geothermal leases, with one or more 
    persons, associations, or corporations if, in the discretion of the 
    Secretary, the conservation of natural resources or the public 
    convenience or necessity may require or the interests of the United 
    States may be best served by the approval.
        ``(2) Holdings or control.--Each lease operated under an 
    approved drilling or development contract, and interest under the 
    contract, shall be excepted in determining holdings or control 
    under section 7.
    ``(h) Coordination With State Governments.--The Secretary shall 
coordinate unitization and pooling activities with appropriate State 
agencies.''.

SEC. 228. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
amended by section 223(a)) is further amended in subsection (a) by 
striking paragraph (2) and inserting the following:
        ``(2) a royalty on any byproduct that is a mineral specified in 
    the first section of the Mineral Leasing Act (30 U.S.C. 181), and 
    that is derived from production under the lease, at the rate of the 
    royalty that applies under that Act to production of the mineral 
    under a lease under that Act;''.

SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS, 
              RENTALS, AND ROYALTIES.

    Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) 
is amended in the second sentence by striking ``period, and in no 
event'' and all that follows through the end of the sentence and 
inserting ``period''.

SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
amended by sections 223 and 224) is further amended--
        (1) in subsection (a)(2) by inserting ``and'' after the 
    semicolon at the end;
        (2) in subsection (a)(3) by striking ``; and'' and inserting a 
    period;
        (3) by striking paragraph (4) of subsection (a); and
        (4) by adding at the end the following:
    ``(e) Crediting of Rental Toward Royalty.--Any annual rental under 
this section that is paid with respect to a lease before the first day 
of the year for which the annual rental is owed shall be credited to 
the amount of royalty that is required to be paid under the lease for 
that year.''.

SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

    Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is 
amended--
        (1) by striking so much as precedes subsection (c), and 
    striking subsections (e), (g), (h), (i), and (j);
        (2) by redesignating subsections (c), (d), and (f) in order as 
    subsections (g), (h), and (i); and
        (3) by inserting before subsection (g), as so redesignated, the 
    following:

``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

    ``(a) In General.--
        ``(1) Primary term.--A geothermal lease shall be for a primary 
    term of 10 years.
        ``(2) Initial extension.--The Secretary shall extend the 
    primary term of a geothermal lease for 5 years if, for each year 
    after the 10th year of the lease--
            ``(A) the Secretary determined under subsection (b) that 
        the lessee satisfied the work commitment requirements that 
        applied to the lease for that year; or
            ``(B) the lessee paid in annual payments accordance with 
        subsection (c).
        ``(3) Additional extension.--The Secretary shall extend the 
    primary term of a geothermal lease (after an initial extension 
    under paragraph (2)) for an additional 5 years if, for each year of 
    the initial extension under paragraph (2), the Secretary determined 
    under subsection (b) that the lessee satisfied the minimum work 
    requirements that applied to the lease for that year.
    ``(b) Requirement to Satisfy Annual Minimum Work Requirement.--
        ``(1) In general.--The lessee for a geothermal lease shall, for 
    each year after the 10th year of the lease, satisfy minimum work 
    requirements prescribed by the Secretary that apply to the lease 
    for that year.
        ``(2) Prescription of minimum work requirements.--The Secretary 
    shall issue regulations prescribing minimum work requirements for 
    geothermal leases, that--
            ``(A) establish a geothermal potential; and
            ``(B) if a geothermal potential has been established, 
        confirm the existence of producible geothermal resources.
    ``(c) Payments in Lieu of Minimum Work Requirements.--In lieu of 
the minimum work requirements set forth in subsection (b)(2), the 
Secretary shall by regulation establish minimum annual payments which 
may be made by the lessee for a limited number of years that the 
Secretary determines will not impair achieving diligent development of 
the geothermal resource, but in no event shall the number of years 
exceed the duration of the extension period provided in subsection (a).
    ``(d) Transition Rules for Leases Issued Prior to Enactment of 
Energy Policy Act of 2005.--The Secretary shall by regulation establish 
transition rules for leases issued before the date of the enactment of 
this subsection, including terms under which a lease that is near the 
end of its term on the date of enactment of this subsection may be 
extended for up to 2 years--
        ``(1) to allow achievement of production under the lease; or
        ``(2) to allow the lease to be included in a producing unit.
    ``(e) Geothermal Lease Overlying Mining Claim.--
        ``(1) Exemption.--The lessee for a geothermal lease of an area 
    overlying an area subject to a mining claim for which a plan of 
    operations has been approved by the relevant Federal land 
    management agency is exempt from annual work requirements 
    established under this Act, if development of the geothermal 
    resource subject to the lease would interfere with the mining 
    operations under such claim.
        ``(2) Termination of exemption.--An exemption under this 
    paragraph expires upon the termination of the mining operations.
    ``(f) Termination of Application of Requirements.--Minimum work 
requirements prescribed under this section shall not apply to a 
geothermal lease after the date on which the geothermal resource is 
utilized under the lease in commercial quantities.''.

SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as 
amended by sections 223, 224, and 230) is further amended by adding at 
the end the following:
    ``(f) Advanced Royalties Required for Cessation of Production.--
        ``(1) In general.--Subject to paragraphs (2) and (3), if, at 
    any time after commercial production under a lease is achieved, 
    production ceases for any reason, the lease shall remain in full 
    force and effect for a period of not more than an aggregate number 
    of 10 years beginning on the date production ceases, if, during the 
    period in which production is ceased, the lessee pays royalties in 
    advance at the monthly average rate at which the royalty was paid 
    during the period of production.
        ``(2) Reduction.--The amount of any production royalty paid for 
    any year shall be reduced (but not below 0) by the amount of any 
    advanced royalties paid under the lease to the extent that the 
    advance royalties have not been used to reduce production royalties 
    for a prior year.
        ``(3) Exceptions.--Paragraph (1) shall not apply if the 
    cessation in production is required or otherwise caused by--
            ``(A) the Secretary;
            ``(B) the Secretary of the Air Force;
            ``(C) the Secretary of the Army;
            ``(D) the Secretary of the Navy;
            ``(E) a State or a political subdivision of a State; or
            ``(F) a force majeure.''.

SEC. 233. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) (as amended by section 223(a)) is further amended 
in subsection (a) by striking paragraph (3) and inserting the 
following:
        ``(3) payment in advance of an annual rental of not less than--
            ``(A) for each of the 1st through 10th years of the lease--
                ``(i) in the case of a lease awarded in a 
            noncompetitive lease sale, $1 per acre or fraction thereof; 
            or
                ``(ii) in the case of a lease awarded in a competitive 
            lease sale, $2 per acre or fraction thereof for the 1st 
            year and $3 per acre or fraction thereof for each of the 
            2nd through 10th years; and
            ``(B) for each year after the 10th year of the lease, $5 
        per acre or fraction thereof;''.
    (b) Termination of Lease for Failure to Pay Rental.--Section 5 of 
the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by 
sections 223, 224, 230, and 232) is further amended by adding at the 
end the following:
    ``(g) Termination of Lease for Failure to Pay Rental.--
        ``(1) In general.--The Secretary shall terminate any lease with 
    respect to which rental is not paid in accordance with this Act and 
    the terms of the lease under which the rental is required, on the 
    expiration of the 45-day period beginning on the date of the 
    failure to pay the rental.
        ``(2) Notification.--The Secretary shall promptly notify a 
    lessee that has not paid rental required under the lease that the 
    lease will be terminated at the end of the period referred to in 
    paragraph (1).
        ``(3) Reinstatement.--A lease that would otherwise terminate 
    under paragraph (1) shall not terminate under that paragraph if the 
    lessee pays to the Secretary, before the end of the period referred 
    to in paragraph (1), the amount of rental due plus a late fee equal 
    to 10 percent of the amount.''.

SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5 FISCAL 
              YEARS.

    (a) Deposit of Geothermal Resources Leases.--Notwithstanding any 
other provision of law, amounts received by the United States in the 
first 5 fiscal years beginning after the date of enactment of this Act 
as rentals, royalties, and other payments required under leases under 
the Geothermal Steam Act of 1970, excluding funds required to be paid 
to State and county governments, shall be deposited into a separate 
account in the Treasury.
    (b) Use of Deposits.--Amounts deposited under subsection (a) shall 
be available to the Secretary of the Interior for expenditure, without 
further appropriation and without fiscal year limitation, to implement 
the Geothermal Steam Act of 1970 and this Act.
    (c) Transfer of Funds.--For the purposes of coordination and 
processing of geothermal leases and geothermal use authorizations on 
Federal land the Secretary of the Interior may authorize the 
expenditure or transfer of such funds as are necessary to the Forest 
Service.

SEC. 235. ACREAGE LIMITATIONS.

    Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is 
amended--
        (1) by striking ``sec. 7.'', and by inserting immediately 
    before and above the first paragraph the following:

``SEC. 7. ACREAGE LIMITATIONS.'';

        (2) in the first paragraph--
            (A) by striking ``two thousand five hundred and sixty 
        acres'' and inserting ``5,120 acres''; and
            (B) by striking ``twenty thousand four hundred and eighty 
        acres'' and inserting ``51,200 acres''; and
        (3) by striking the second paragraph.

SEC. 236. TECHNICAL AMENDMENTS.

    The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is 
further amended as follows:
        (1) By striking ``geothermal steam and associated geothermal 
    resources'' each place it appears and inserting ``geothermal 
    resources''.
        (2) Section 2 (30 U.S.C. 1001) is amended by adding at the end 
    the following:
        ``(g) `direct use' means utilization of geothermal resources 
    for commercial, residential, agricultural, public facilities, or 
    other energy needs other than the commercial production of 
    electricity; and''.
        (3) Section 21 (30 U.S.C. 1020) is amended by striking ``(a) 
    Within one hundred'' and all that follows through ``(b) 
    Geothermal'' and inserting ``Geothermal''.
        (4) The first section (30 U.S.C. 1001 note) is amended by 
    striking ``That this'' and inserting the following:

``SEC. 1. SHORT TITLE.

    ``This''.
        (5) Section 2 (30 U.S.C. 1001) is amended by striking ``sec. 2. 
     As'' and inserting the following:

``SEC. 2. DEFINITIONS.

    ``As''.
        (6) Section 3 (30 U.S.C. 1002) is amended by striking ``sec. 3. 
    Subject'' and inserting the following:

``SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.

    ``Subject''.
        (7) Section 5 (30 U.S.C. 1004) is further amended by striking 
    ``sec. 5.'', and by inserting immediately before and above 
    subsection (a) the following:

``SEC. 5. RENTS AND ROYALTIES.''.

        (8) Section 8 (30 U.S.C. 1007) is amended by striking ``sec. 8. 
    (a) The'' and inserting the following:

``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

    ``(a) The''.
        (9) Section 9 (30 U.S.C. 1008) is amended by striking ``sec. 9. 
    If'' and inserting the following:

``SEC. 9. BYPRODUCTS.

    ``If''.
        (10) Section 10 (30 U.S.C. 1009) is amended by striking ``sec. 
    10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    ``The''.
        (11) Section 11 (30 U.S.C. 1010) is amended by striking ``sec. 
    11. The'' and inserting the following:

``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

    ``The''.
        (12) Section 12 (30 U.S.C. 1011) is amended by striking ``sec. 
    12. Leases'' and inserting the following:

``SEC. 12. TERMINATION OF LEASES.

    ``Leases''.
        (13) Section 13 (30 U.S.C. 1012) is amended by striking ``sec. 
    13. The'' and inserting the following:

``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.

    ``The''.
        (14) Section 14 (30 U.S.C. 1013) is amended by striking ``sec. 
    14. Subject'' and inserting the following:

``SEC. 14. SURFACE LAND USE.

    ``Subject''.
        (15) Section 15 (30 U.S.C. 1014) is amended by striking ``sec. 
    15. (a) Geothermal'' and inserting the following:

``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

    ``(a) Geothermal''.
        (16) Section 16 (30 U.S.C. 1015) is amended by striking ``sec. 
    16. Leases'' and inserting the following:

``SEC. 16. REQUIREMENT FOR LESSEES.

    ``Leases''.
        (17) Section 17 (30 U.S.C. 1016) is amended by striking ``sec. 
    17. Administration'' and inserting the following:

``SEC. 17. ADMINISTRATION.

    ``Administration''.
        (18) Section 19 (30 U.S.C. 1018) is amended by striking ``sec. 
    19. Upon'' and inserting the following:

``SEC. 19. DATA FROM FEDERAL AGENCIES.

    ``Upon''.
        (19) Section 21 (30 U.S.C. 1020) is further amended by striking 
    ``sec. 21.'', and by inserting immediately before and above the 
    remainder of that section the following:

``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL 
              RIGHTS.''.

        (20) Section 22 (30 U.S.C. 1021) is amended by striking ``sec. 
    22. Nothing'' and inserting the following:

``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

    ``Nothing''.
        (21) Section 23 (30 U.S.C. 1022) is amended by striking ``sec. 
    23. (a) All'' and inserting the following:

``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

    ``(a) All''.
        (22) Section 24 (30 U.S.C. 1023) is amended by striking ``sec. 
    24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

    ``The''.
        (23) Section 25 (30 U.S.C. 1024) is amended by striking ``sec. 
    25. As'' and inserting the following:

``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.

    ``As''.
        (24) Section 26 is amended by striking ``sec. 26. The'' and 
    inserting the following:

``SEC. 26. AMENDMENT.

    ``The''.
        (25) Section 27 (30 U.S.C. 1025) is amended by striking ``sec. 
    27. The'' and inserting the following:

``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

    ``The''.
        (26) Section 28 (30 U.S.C. 1026) is amended by striking ``sec. 
    28. (a)(1) The'' and inserting the following:

``SEC. 28. SIGNIFICANT THERMAL FEATURES.

    ``(a)(1) The''.
        (27) Section 29 (30 U.S.C. 1027) is amended by striking ``sec. 
    29. The'' and inserting the following:

``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

    ``The''.

SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

    (a) Participation Authorized.--The Secretary, acting through the 
Idaho National Laboratory, may participate in a consortium described in 
subsection (b) to address science and science policy issues surrounding 
the expanded discovery and use of geothermal energy, including from 
geothermal resources on public lands.
    (b) Members.--The consortium referred to in subsection (a) shall--
        (1) be known as the ``Intermountain West Geothermal 
    Consortium'';
        (2) be a regional consortium of institutions and government 
    agencies that focuses on building collaborative efforts among the 
    universities in the State of Idaho, other regional universities, 
    State agencies, and the Idaho National Laboratory;
        (3) include Boise State University, the University of Idaho 
    (including the Idaho Water Resources Research Institute), the 
    Oregon Institute of Technology, the Desert Research Institute with 
    the University and Community College System of Nevada, and the 
    Energy and Geoscience Institute at the University of Utah;
        (4) be hosted and managed by Boise State University; and
        (5) have a director appointed by Boise State University, and 
    associate directors appointed by each participating institution.
    (c) Financial Assistance.--The Secretary, acting through the Idaho 
National Laboratory and subject to the availability of appropriations, 
will provide financial assistance to Boise State University for 
expenditure under contracts with members of the consortium to carry out 
the activities of the consortium.

                       Subtitle C--Hydroelectric

SEC. 241. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal Power Act 
(16 U.S.C. 797(e)) is amended by inserting after ``adequate protection 
and utilization of such reservation.'' at the end of the first proviso 
the following: ``The license applicant and any party to the proceeding 
shall be entitled to a determination on the record, after opportunity 
for an agency trial-type hearing of no more than 90 days, on any 
disputed issues of material fact with respect to such conditions. All 
disputed issues of material fact raised by any party shall be 
determined in a single trial-type hearing to be conducted by the 
relevant resource agency in accordance with the regulations promulgated 
under this subsection and within the time frame established by the 
Commission for each license proceeding. Within 90 days of the date of 
enactment of the Energy Policy Act of 2005, the Secretaries of the 
Interior, Commerce, and Agriculture shall establish jointly, by rule, 
the procedures for such expedited trial-type hearing, including the 
opportunity to undertake discovery and cross-examine witnesses, in 
consultation with the Federal Energy Regulatory Commission.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811) 
is amended by inserting after ``and such fishways as may be prescribed 
by the Secretary of Commerce.'' the following: ``The license applicant 
and any party to the proceeding shall be entitled to a determination on 
the record, after opportunity for an agency trial-type hearing of no 
more than 90 days, on any disputed issues of material fact with respect 
to such fishways. All disputed issues of material fact raised by any 
party shall be determined in a single trial-type hearing to be 
conducted by the relevant resource agency in accordance with the 
regulations promulgated under this subsection and within the time frame 
established by the Commission for each license proceeding. Within 90 
days of the date of enactment of the Energy Policy Act of 2005, the 
Secretaries of the Interior, Commerce, and Agriculture shall establish 
jointly, by rule, the procedures for such expedited trial-type hearing, 
including the opportunity to undertake discovery and cross-examine 
witnesses, in consultation with the Federal Energy Regulatory 
Commission.''.
    (c) Alternative Conditions and Prescriptions.--Part I of the 
Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the 
following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ``(a) Alternative Conditions.--(1) Whenever any person applies for 
a license for any project works within any reservation of the United 
States, and the Secretary of the department under whose supervision 
such reservation falls (referred to in this subsection as the 
`Secretary') deems a condition to such license to be necessary under 
the first proviso of section 4(e), the license applicant or any other 
party to the license proceeding may propose an alternative condition.
    ``(2) Notwithstanding the first proviso of section 4(e), the 
Secretary shall accept the proposed alternative condition referred to 
in paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary determines, based on 
substantial evidence provided by the license applicant, any other party 
to the proceeding, or otherwise available to the Secretary, that such 
alternative condition--
        ``(A) provides for the adequate protection and utilization of 
    the reservation; and
        ``(B) will either, as compared to the condition initially by 
    the Secretary--
            ``(i) cost significantly less to implement; or
            ``(ii) result in improved operation of the project works 
        for electricity production.
    ``(3) In making a determination under paragraph (2), the Secretary 
shall consider evidence provided for the record by any party to a 
licensing proceeding, or otherwise available to the Secretary, 
including any evidence provided by the Commission, on the 
implementation costs or operational impacts for electricity production 
of a proposed alternative.
    ``(4) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any condition under section 4(e) or 
alternative condition it accepts under this section, a written 
statement explaining the basis for such condition, and reason for not 
accepting any alternative condition under this section. The written 
statement must demonstrate that the Secretary gave equal consideration 
to the effects of the condition adopted and alternatives not accepted 
on energy supply, distribution, cost, and use; flood control; 
navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(5) If the Commission finds that the Secretary's final condition 
would be inconsistent with the purposes of this part, or other 
applicable law, the Commission may refer the dispute to the 
Commission's Dispute Resolution Service. The Dispute Resolution Service 
shall consult with the Secretary and the Commission and issue a non-
binding advisory within 90 days. The Secretary may accept the Dispute 
Resolution Service advisory unless the Secretary finds that the 
recommendation will not adequately protect the reservation. The 
Secretary shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.
    ``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the 
Interior or the Secretary of Commerce prescribes a fishway under 
section 18, the license applicant or any other party to the license 
proceeding may propose an alternative to such prescription to 
construct, maintain, or operate a fishway.
    ``(2) Notwithstanding section 18, the Secretary of the Interior or 
the Secretary of Commerce, as appropriate, shall accept and prescribe, 
and the Commission shall require, the proposed alternative referred to 
in paragraph (1), if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the license 
applicant, any other party to the proceeding, or otherwise available to 
the Secretary, that such alternative--
        ``(A) will be no less protective than the fishway initially 
    prescribed by the Secretary; and
        ``(B) will either, as compared to the fishway initially 
    prescribed by the Secretary--
            ``(i) cost significantly less to implement; or
            ``(ii) result in improved operation of the project works 
        for electricity production.
    ``(3) In making a determination under paragraph (2), the Secretary 
shall consider evidence provided for the record by any party to a 
licensing proceeding, or otherwise available to the Secretary, 
including any evidence provided by the Commission, on the 
implementation costs or operational impacts for electricity production 
of a proposed alternative.
    ``(4) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any prescription under section 18 or 
alternative prescription it accepts under this section, a written 
statement explaining the basis for such prescription, and reason for 
not accepting any alternative prescription under this section. The 
written statement must demonstrate that the Secretary gave equal 
consideration to the effects of the prescription adopted and 
alternatives not accepted on energy supply, distribution, cost, and 
use; flood control; navigation; water supply; and air quality (in 
addition to the preservation of other aspects of environmental 
quality); based on such information as may be available to the 
Secretary, including information voluntarily provided in a timely 
manner by the applicant and others. The Secretary shall also submit, 
together with the aforementioned written statement, all studies, data, 
and other factual information available to the Secretary and relevant 
to the Secretary's decision.
    ``(5) If the Commission finds that the Secretary's final 
prescription would be inconsistent with the purposes of this part, or 
other applicable law, the Commission may refer the dispute to the 
Commission's Dispute Resolution Service. The Dispute Resolution Service 
shall consult with the Secretary and the Commission and issue a non-
binding advisory within 90 days. The Secretary may accept the Dispute 
Resolution Service advisory unless the Secretary finds that the 
recommendation will not adequately protect the fish resources. The 
Secretary shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.''.

SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and sold by 
a qualified hydroelectric facility during the incentive period, the 
Secretary shall make, subject to the availability of appropriations, 
incentive payments to the owner or operator of such facility. The 
amount of such payment made to any such owner or operator shall be as 
determined under subsection (e) of this section. Payments under this 
section may only be made upon receipt by the Secretary of an incentive 
payment application which establishes that the applicant is eligible to 
receive such payment and which satisfies such other requirements as the 
Secretary deems necessary. Such application shall be in such form, and 
shall be submitted at such time, as the Secretary shall establish.
    (b) Definitions.--For purposes of this section:
        (1) Qualified hydroelectric facility.--The term ``qualified 
    hydroelectric facility'' means a turbine or other generating device 
    owned or solely operated by a non-Federal entity which generates 
    hydroelectric energy for sale and which is added to an existing dam 
    or conduit.
        (2) Existing dam or conduit.--The term ``existing dam or 
    conduit'' means any dam or conduit the construction of which was 
    completed before the date of the enactment of this section and 
    which does not require any construction or enlargement of 
    impoundment or diversion structures (other than repair or 
    reconstruction) in connection with the installation of a turbine or 
    other generating device.
        (3) Conduit.--The term ``conduit'' has the same meaning as when 
    used in section 30(a)(2) of the Federal Power Act (16 U.S.C. 
    823a(a)(2)).
The terms defined in this subsection shall apply without regard to the 
hydroelectric kilowatt capacity of the facility concerned, without 
regard to whether the facility uses a dam owned by a governmental or 
nongovernmental entity, and without regard to whether the facility 
begins operation on or after the date of the enactment of this section.
    (c) Eligibility Window.--Payments may be made under this section 
only for electric energy generated from a qualified hydroelectric 
facility which begins operation during the period of 10 fiscal years 
beginning with the first full fiscal year occurring after the date of 
enactment of this subtitle.
    (d) Incentive Period.--A qualified hydroelectric facility may 
receive payments under this section for a period of 10 fiscal years 
(referred to in this section as the ``incentive period''). Such period 
shall begin with the fiscal year in which electric energy generated 
from the facility is first eligible for such payments.
    (e) Amount of Payment.--
        (1) In general.--Payments made by the Secretary under this 
    section to the owner or operator of a qualified hydroelectric 
    facility shall be based on the number of kilowatt hours of 
    hydroelectric energy generated by the facility during the incentive 
    period. For any such facility, the amount of such payment shall be 
    1.8 cents per kilowatt hour (adjusted as provided in paragraph 
    (2)), subject to the availability of appropriations under 
    subsection (g), except that no facility may receive more than 
    $750,000 in 1 calendar year.
        (2) Adjustments.--The amount of the payment made to any person 
    under this section as provided in paragraph (1) shall be adjusted 
    for inflation for each fiscal year beginning after calendar year 
    2005 in the same manner as provided in the provisions of section 
    29(d)(2)(B) of the Internal Revenue Code of 1986, except that in 
    applying such provisions the calendar year 2005 shall be 
    substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to any 
qualified hydroelectric facility after the expiration of the period of 
20 fiscal years beginning with the first full fiscal year occurring 
after the date of enactment of this subtitle, and no payment may be 
made under this section to any such facility after a payment has been 
made with respect to such facility for a period of 10 fiscal years.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out the purposes of this section 
$10,000,000 for each of the fiscal years 2006 through 2015.

SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary shall make incentive 
payments to the owners or operators of hydroelectric facilities at 
existing dams to be used to make capital improvements in the facilities 
that are directly related to improving the efficiency of such 
facilities by at least 3 percent.
    (b) Limitations.--Incentive payments under this section shall not 
exceed 10 percent of the costs of the capital improvement concerned and 
not more than 1 payment may be made with respect to improvements at a 
single facility. No payment in excess of $750,000 may be made with 
respect to improvements at a single facility.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section not more than $10,000,000 for 
each of the fiscal years 2006 through 2015.

SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    Section 32 of the Federal Power Act (16 U.S.C. 823c) is amended--
        (1) in subsection (a)(3)(C), by inserting ``except as provided 
    in subsection (j),'' before ``conditions''; and
        (2) by adding at the end the following:
    ``(j) Fish and Wildlife.--If the State of Alaska determines that a 
recommendation under subsection (a)(3)(C) is inconsistent with 
paragraphs (1) and (2) of subsection (a), the State of Alaska may 
decline to adopt all or part of the recommendations in accordance with 
the procedures established under section 10(j)(2).''.

SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT.

    (a) Extension of Time.--Notwithstanding the time period specified 
in section 5 of the Federal Power Act (16 U.S.C. 798) that would 
otherwise apply to the Federal Energy Regulatory Commission (referred 
to in this section as the ``Commission'') project numbered 12107, the 
Commission shall--
        (1) if the preliminary permit is in effect on the date of 
    enactment of this Act, extend the preliminary permit for a period 
    of 3 years beginning on the date on which the preliminary permit 
    expires; or
        (2) if the preliminary permit expired before the date of 
    enactment of this Act, on request of the permittee, reinstate the 
    preliminary permit for an additional 3-year period beginning on the 
    date of enactment of this Act.
    (b) Limitation on Certain Fees.--Notwithstanding section 10(e)(1) 
of the Federal Power Act (16 U.S.C. 803(e)(1)) or any other provision 
of Federal law providing for the payment to the United States of 
charges for the use of Federal land for the purposes of operating and 
maintaining a hydroelectric development licensed by the Commission, any 
political subdivision of the State of Montana that holds a Commission 
license for the Commission project numbered 12107 in Granite and Deer 
Lodge Counties, Montana, shall be required to pay to the United States 
for the use of that land for each year during which the political 
subdivision continues to hold the license for the project, the lesser 
of--
        (1) $25,000; or
        (2) such annual charge as the Commission or any other 
    department or agency of the Federal Government may assess.

SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2708(a)(6)) is amended by striking ``April 20, 1977'' 
and inserting ``July 22, 2005''.

                       Subtitle D--Insular Energy

SEC. 251. INSULAR AREAS ENERGY SECURITY.

    Section 604 of the Act entitled ``An Act to authorize 
appropriations for certain insular areas of the United States, and for 
other purposes'', approved December 24, 1980 (48 U.S.C. 1492), is 
amended--
        (1) in subsection (a)(4) by striking the period and inserting a 
    semicolon;
        (2) by adding at the end of subsection (a) the following new 
    paragraphs:
        ``(5) electric power transmission and distribution lines in 
    insular areas are inadequate to withstand damage caused by the 
    hurricanes and typhoons which frequently occur in insular areas and 
    such damage often costs millions of dollars to repair; and
        ``(6) the refinement of renewable energy technologies since the 
    publication of the 1982 Territorial Energy Assessment prepared 
    pursuant to subsection (c) reveals the need to reassess the state 
    of energy production, consumption, infrastructure, reliance on 
    imported energy, opportunities for energy conservation and 
    increased energy efficiency, and indigenous sources in regard to 
    the insular areas.'';
        (3) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary of the Interior, in consultation with the 
Secretary of Energy and the head of government of each insular area, 
shall update the plans required under subsection (c) by--
        ``(A) updating the contents required by subsection (c);
        ``(B) drafting long-term energy plans for such insular areas 
    with the objective of reducing, to the extent feasible, their 
    reliance on energy imports by the year 2012, increasing energy 
    conservation and energy efficiency, and maximizing, to the extent 
    feasible, use of indigenous energy sources; and
        ``(C) drafting long-term energy transmission line plans for 
    such insular areas with the objective that the maximum percentage 
    feasible of electric power transmission and distribution lines in 
    each insular area be protected from damage caused by hurricanes and 
    typhoons.
    ``(2) In carrying out this subsection, the Secretary of Energy 
shall identify and evaluate the strategies or projects with the 
greatest potential for reducing the dependence on imported fossil fuels 
as used for the generation of electricity, including strategies and 
projects for--
        ``(A) improved supply-side efficiency of centralized electrical 
    generation, transmission, and distribution systems;
        ``(B) improved demand-side management through--
            ``(i) the application of established standards for energy 
        efficiency for appliances;
            ``(ii) the conduct of energy audits for business and 
        industrial customers; and
            ``(iii) the use of energy savings performance contracts;
        ``(C) increased use of renewable energy, including--
            ``(i) solar thermal energy for electric generation;
            ``(ii) solar thermal energy for water heating in large 
        buildings, such as hotels, hospitals, government buildings, and 
        residences;
            ``(iii) photovoltaic energy;
            ``(iv) wind energy;
            ``(v) hydroelectric energy;
            ``(vi) wave energy;
            ``(vii) energy from ocean thermal resources, including 
        ocean thermal-cooling for community air conditioning;
            ``(viii) water vapor condensation for the production of 
        potable water;
            ``(ix) fossil fuel and renewable hybrid electrical 
        generation systems; and
            ``(x) other strategies or projects that the Secretary may 
        identify as having significant potential; and
        ``(D) fuel substitution and minimization with indigenous 
    biofuels, such as coconut oil.
    ``(3) In carrying out this subsection, for each insular area with a 
significant need for distributed generation, the Secretary of Energy 
shall identify and evaluate the most promising strategies and projects 
described in subparagraphs (C) and (D) of paragraph (2) for meeting 
that need.
    ``(4) In assessing the potential of any strategy or project under 
paragraphs (2) and (3), the Secretary of Energy shall consider--
        ``(A) the estimated cost of the power or energy to be produced, 
    including--
            ``(i) any additional costs associated with the distribution 
        of the generation; and
            ``(ii) the long-term availability of the generation source;
        ``(B) the capacity of the local electrical utility to manage, 
    operate, and maintain any project that may be undertaken; and
        ``(C) other factors the Secretary of Energy considers to be 
    appropriate.
    ``(5) Not later than 1 year after the date of enactment of this 
subsection, the Secretary of the Interior shall submit to the Committee 
on Energy and Natural Resources of the Senate, the Committee on 
Resources of the House of Representatives, and the Committee on Energy 
and Commerce of the House of Representatives, the updated plans for 
each insular area required by this subsection.''; and
        (4) by amending subsection (g)(4) to read as follows:
        ``(4) Power line grants for insular areas.--
            ``(A) In general.--The Secretary of the Interior is 
        authorized to make grants to governments of insular areas of 
        the United States to carry out eligible projects to protect 
        electric power transmission and distribution lines in such 
        insular areas from damage caused by hurricanes and typhoons.
            ``(B) Eligible projects.--The Secretary of the Interior may 
        award grants under subparagraph (A) only to governments of 
        insular areas of the United States that submit written project 
        plans to the Secretary for projects that meet the following 
        criteria:
                ``(i) The project is designed to protect electric power 
            transmission and distribution lines located in 1 or more of 
            the insular areas of the United States from damage caused 
            by hurricanes and typhoons.
                ``(ii) The project is likely to substantially reduce 
            the risk of future damage, hardship, loss, or suffering.
                ``(iii) The project addresses 1 or more problems that 
            have been repetitive or that pose a significant risk to 
            public health and safety.
                ``(iv) The project is not likely to cost more than the 
            value of the reduction in direct damage and other negative 
            impacts that the project is designed to prevent or 
            mitigate. The cost benefit analysis required by this 
            criterion shall be computed on a net present value basis.
                ``(v) The project design has taken into consideration 
            long-term changes to the areas and persons it is designed 
            to protect and has manageable future maintenance and 
            modification requirements.
                ``(vi) The project plan includes an analysis of a range 
            of options to address the problem it is designed to prevent 
            or mitigate and a justification for the selection of the 
            project in light of that analysis.
                ``(vii) The applicant has demonstrated to the Secretary 
            that the matching funds required by subparagraph (D) are 
            available.
            ``(C) Priority.--When making grants under this paragraph, 
        the Secretary of the Interior shall give priority to grants for 
        projects which are likely to--
                ``(i) have the greatest impact on reducing future 
            disaster losses; and
                ``(ii) best conform with plans that have been approved 
            by the Federal Government or the government of the insular 
            area where the project is to be carried out for development 
            or hazard mitigation for that insular area.
            ``(D) Matching requirement.--The Federal share of the cost 
        for a project for which a grant is provided under this 
        paragraph shall not exceed 75 percent of the total cost of that 
        project. The non-Federal share of the cost may be provided in 
        the form of cash or services.
            ``(E) Treatment of funds for certain purposes.--Grants 
        provided under this paragraph shall not be considered as 
        income, a resource, or a duplicative program when determining 
        eligibility or benefit levels for Federal major disaster and 
        emergency assistance.
            ``(F) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this paragraph 
        $6,000,000 for each fiscal year beginning after the date of the 
        enactment of this paragraph.''.

SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE.

    (a) Project Feasibilty Studies.--
        (1) In general.--On a request described in paragraph (2), the 
    Secretary shall conduct a feasibility study of a project to 
    implement a strategy or project identified in the plans submitted 
    to Congress pursuant to section 604 of the Act entitled ``An Act to 
    authorize appropriations for certain insular areas of the United 
    States, and for other purposes'', approved December 24, 1980 (48 
    U.S.C. 1492), as having the potential to--
            (A) significantly reduce the dependence of an insular area 
        on imported fossil fuels; or
            (B) provide needed distributed generation to an insular 
        area.
        (2) Request.--The Secretary shall conduct a feasibility study 
    under paragraph (1) on--
            (A) the request of an electric utility located in an 
        insular area that commits to fund at least 10 percent of the 
        cost of the study; and
            (B) if the electric utility is located in the Federated 
        States of Micronesia, the Republic of the Marshall Islands, or 
        the Republic of Palau, written support for that request by the 
        President or the Ambassador of the affected freely associated 
        state.
        (3) Consultation.--The Secretary shall consult with regional 
    utility organizations in--
            (A) conducting feasibility studies under paragraph (1); and
            (B) determining the feasibility of potential projects.
        (4) Feasibility.--For the purpose of a feasibility study under 
    paragraph (1), a project shall be determined to be feasible if the 
    project would significantly reduce the dependence of an insular 
    area on imported fossil fuels, or provide needed distributed 
    generation to an insular area, at a reasonable cost.
    (b) Implementation.--
        (1) In general.--On a determination by the Secretary (in 
    consultation with the Secretary of the Interior) that a project is 
    feasible under subsection (a) and a commitment by an electric 
    utility to operate and maintain the project, the Secretary may 
    provide such technical and financial assistance as the Secretary 
    determines is appropriate for the implementation of the project.
        (2) Regional utility organizations.--In providing assistance 
    under paragraph (1), the Secretary shall consider providing the 
    assistance through regional utility organizations.
    (c) Authorization of Appropriations.--
        (1) In general.--There are authorized to be appropriated to the 
    Secretary--
            (A) $500,000 for each fiscal year for project feasibility 
        studies under subsection (a); and
            (B) $4,000,000 for each fiscal year for project 
        implementation under subsection (b).
        (2) Limitation of funds received by insular areas.--No insular 
    area may receive, during any 3-year period, more than 20 percent of 
    the total funds made available during that 3-year period under 
    subparagraphs (A) and (B) of paragraph (1) unless the Secretary 
    determines that providing funding in excess of that percentage best 
    advances existing opportunities to meet the objectives of this 
    section.

                         TITLE III--OIL AND GAS
           Subtitle A--Petroleum Reserve and Home Heating Oil

SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
              RESERVE AND OTHER ENERGY PROGRAMS.

    (a) Amendment to Title I of the Energy Policy and Conservation 
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6212 
et seq.) is amended--
        (1) by striking section 166 (42 U.S.C. 6246) and inserting the 
    following:


                    ``AUTHORIZATION OF APPROPRIATIONS

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

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

        (2) by striking section 273(e) (42 U.S.C. 6283(e)); and
        (3) by striking part D (42 U.S.C. 6285).
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended--
        (1) by inserting after the items relating to part C of title I 
    the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';

        (2) by amending the items relating to part C of title II to 
    read as follows:

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

``Sec. 273. Summer fill and fuel budgeting programs.'';

    and
        (3) by striking the items relating to part D of title II.
    (d) Amendment to the Energy Policy and Conservation Act.--Section 
183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 
6250b(b)(1)) is amended by striking ``by more'' and all that follows 
through ``mid-October through March'' and inserting ``by more than 60 
percent over its 5-year rolling average for the months of mid-October 
through March (considered as a heating season average)''.
    (e) Fill Strategic Petroleum Reserve to Capacity.--
        (1) In general.--The Secretary shall, as expeditiously as 
    practicable, without incurring excessive cost or appreciably 
    affecting the price of petroleum products to consumers, acquire 
    petroleum in quantities sufficient to fill the Strategic Petroleum 
    Reserve to the 1,000,000,000-barrel capacity authorized under 
    section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 
    6234(a)), in accordance with the sections 159 and 160 of that Act 
    (42 U.S.C. 6239, 6240).
        (2) Procedures.--
            (A) Amendment.--Section 160 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6240) is amended by inserting after 
        subsection (b) the following new subsection:
    ``(c) Procedures.--The Secretary shall develop, with public notice 
and opportunity for comment, procedures consistent with the objectives 
of this section to acquire petroleum for the Reserve. Such procedures 
shall take into account the need to--
        ``(1) maximize overall domestic supply of crude oil (including 
    quantities stored in private sector inventories);
        ``(2) avoid incurring excessive cost or appreciably affecting 
    the price of petroleum products to consumers;
        ``(3) minimize the costs to the Department of the Interior and 
    the Department of Energy in acquiring such petroleum products 
    (including foregone revenues to the Treasury when petroleum 
    products for the Reserve are obtained through the royalty-in-kind 
    program);
        ``(4) protect national security;
        ``(5) avoid adversely affecting current and futures prices, 
    supplies, and inventories of oil; and
        ``(6) address other factors that the Secretary determines to be 
    appropriate.''.
            (B) Review of requests for deferrals of scheduled 
        deliveries.--The procedures developed under section 160(c) of 
        the Energy Policy and Conservation Act, as added by 
        subparagraph (A), shall include procedures and criteria for the 
        review of requests for the deferrals of scheduled deliveries.
            (C) Deadlines.--The Secretary shall--
                (i) propose the procedures required under the amendment 
            made by subparagraph (A) not later than 120 days after the 
            date of enactment of this Act;
                (ii) promulgate the procedures not later than 180 days 
            after the date of enactment of this Act; and
                (iii) comply with the procedures in acquiring petroleum 
            for the Reserve effective beginning on the date that is 180 
            days after the date of enactment of this Act.

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

    Section 713 of the Energy Act of 2000 (Public Law 106-469; 42 
U.S.C. 6201 note) is amended by striking ``4'' and inserting ``9''.

SEC. 303. SITE SELECTION.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall complete a proceeding to select, from sites that the 
Secretary has previously studied, sites necessary to enable acquisition 
by the Secretary of the full authorized volume of the Strategic 
Petroleum Reserve. In such proceeding, the Secretary shall first 
consider and give preference to the five sites which the Secretary 
previously assessed in the Draft Environmental Impact Statement, DOE/
EIS-0165-D. However, the Secretary in his discretion may select other 
sites as proposed by a State where a site has been previously studied 
by the Secretary to meet the full authorized volume of the Strategic 
Petroleum Reserve.

                        Subtitle B--Natural Gas

SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.

    (a) Scope of Natural Gas Act.--Section 1(b) of the Natural Gas Act 
(15 U.S.C. 717(b)) is amended by inserting ``and to the importation or 
exportation of natural gas in foreign commerce and to persons engaged 
in such importation or exportation,'' after ``such transportation or 
sale,''.
    (b) Definition.--Section 2 of the Natural Gas Act (15 U.S.C. 717a) 
is amended by adding at the end the following new paragraph:
        ``(11) `LNG terminal' includes all natural gas facilities 
    located onshore or in State waters that are used to receive, 
    unload, load, store, transport, gasify, liquefy, or process natural 
    gas that is imported to the United States from a foreign country, 
    exported to a foreign country from the United States, or 
    transported in interstate commerce by waterborne vessel, but does 
    not include--
            ``(A) waterborne vessels used to deliver natural gas to or 
        from any such facility; or
            ``(B) any pipeline or storage facility subject to the 
        jurisdiction of the Commission under section 7.''.
    (c) Authorization for Siting, Construction, Expansion, or Operation 
of LNG Terminals.--(1) The title for section 3 of the Natural Gas Act 
(15 U.S.C. 717b) is amended by inserting ``; lng terminals'' after 
``exportation or importation of natural gas''.
    (2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
adding at the end the following:
    ``(d) Except as specifically provided in this Act, nothing in this 
Act affects the rights of States under--
        ``(1) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
    et seq.);
        ``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
        ``(3) the Federal Water Pollution Control Act (33 U.S.C. 1251 
    et seq.).
    ``(e)(1) The Commission shall have the exclusive authority to 
approve or deny an application for the siting, construction, expansion, 
or operation of an LNG terminal. Except as specifically provided in 
this Act, nothing in this Act is intended to affect otherwise 
applicable law related to any Federal agency's authorities or 
responsibilities related to LNG terminals.
    ``(2) Upon the filing of any application to site, construct, 
expand, or operate an LNG terminal, the Commission shall--
        ``(A) set the matter for hearing;
        ``(B) give reasonable notice of the hearing to all interested 
    persons, including the State commission of the State in which the 
    LNG terminal is located and, if not the same, the Governor-
    appointed State agency described in section 3A;
        ``(C) decide the matter in accordance with this subsection; and
        ``(D) issue or deny the appropriate order accordingly.
    ``(3)(A) Except as provided in subparagraph (B), the Commission may 
approve an application described in paragraph (2), in whole or part, 
with such modifications and upon such terms and conditions as the 
Commission find necessary or appropriate.
    ``(B) Before January 1, 2015, the Commission shall not--
        ``(i) deny an application solely on the basis that the 
    applicant proposes to use the LNG terminal exclusively or partially 
    for gas that the applicant or an affiliate of the applicant will 
    supply to the facility; or
        ``(ii) condition an order on--
            ``(I) a requirement that the LNG terminal offer service to 
        customers other than the applicant, or any affiliate of the 
        applicant, securing the order;
            ``(II) any regulation of the rates, charges, terms, or 
        conditions of service of the LNG terminal; or
            ``(III) a requirement to file with the Commission schedules 
        or contracts related to the rates, charges, terms, or 
        conditions of service of the LNG terminal.
    ``(C) Subparagraph (B) shall cease to have effect on January 1, 
2030.
    ``(4) An order issued for an LNG terminal that also offers service 
to customers on an open access basis shall not result in subsidization 
of expansion capacity by existing customers, degradation of service to 
existing customers, or undue discrimination against existing customers 
as to their terms or conditions of service at the facility, as all of 
those terms are defined by the Commission.
    ``(f)(1) In this subsection, the term `military installation'--
        ``(A) means a base, camp, post, range, station, yard, center, 
    or homeport facility for any ship or other activity under the 
    jurisdiction of the Department of Defense, including any leased 
    facility, that is located within a State, the District of Columbia, 
    or any territory of the United States; and
        ``(B) does not include any facility used primarily for civil 
    works, rivers and harbors projects, or flood control projects, as 
    determined by the Secretary of Defense.
    ``(2) The Commission shall enter into a memorandum of understanding 
with the Secretary of Defense for the purpose of ensuring that the 
Commission coordinate and consult with the Secretary of Defense on the 
siting, construction, expansion, or operation of liquefied natural gas 
facilities that may affect an active military installation.
    ``(3) The Commission shall obtain the concurrence of the Secretary 
of Defense before authorizing the siting, construction, expansion, or 
operation of liquefied natural gas facilities affecting the training or 
activities of an active military installation.''.
    (d) LNG Terminal State and Local Safety Concerns.--After section 3 
of the Natural Gas Act (15 U.S.C. 717b) insert the following:


                 ``STATE AND LOCAL SAFETY CONSIDERATIONS

    ``Sec. 3A. (a) The Commission shall promulgate regulations on the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) pre-
filing process within 60 days after the date of enactment of this 
section. An applicant shall comply with pre-filing process required 
under the National Environmental Policy Act of 1969 prior to filing an 
application with the Commission. The regulations shall require that the 
pre-filing process commence at least 6 months prior to the filing of an 
application for authorization to construct an LNG terminal and 
encourage applicants to cooperate with State and local officials.
    ``(b) The Governor of a State in which an LNG terminal is proposed 
to be located shall designate the appropriate State agency for the 
purposes of consulting with the Commission regarding an application 
under section 3. The Commission shall consult with such State agency 
regarding State and local safety considerations prior to issuing an 
order pursuant to section 3. For the purposes of this section, State 
and local safety considerations include--
        ``(1) the kind and use of the facility;
        ``(2) the existing and projected population and demographic 
    characteristics of the location;
        ``(3) the existing and proposed land use near the location;
        ``(4) the natural and physical aspects of the location;
        ``(5) the emergency response capabilities near the facility 
    location; and
        ``(6) the need to encourage remote siting.
    ``(c) The State agency may furnish an advisory report on State and 
local safety considerations to the Commission with respect to an 
application no later than 30 days after the application was filed with 
the Commission. Before issuing an order authorizing an applicant to 
site, construct, expand, or operate an LNG terminal, the Commission 
shall review and respond specifically to the issues raised by the State 
agency described in subsection (b) in the advisory report. This 
subsection shall apply to any application filed after the date of 
enactment of the Energy Policy Act of 2005. A State agency has 30 days 
after such date of enactment to file an advisory report related to any 
applications pending at the Commission as of such date of enactment.
    ``(d) The State commission of the State in which an LNG terminal is 
located may, after the terminal is operational, conduct safety 
inspections in conformance with Federal regulations and guidelines with 
respect to the LNG terminal upon written notice to the Commission. The 
State commission may notify the Commission of any alleged safety 
violations. The Commission shall transmit information regarding such 
allegations to the appropriate Federal agency, which shall take 
appropriate action and notify the State commission.
    ``(e)(1) In any order authorizing an LNG terminal the Commission 
shall require the LNG terminal operator to develop an Emergency 
Response Plan. The Emergency Response Plan shall be prepared in 
consultation with the United States Coast Guard and State and local 
agencies and be approved by the Commission prior to any final approval 
to begin construction. The Plan shall include a cost-sharing plan.
    ``(2) A cost-sharing plan developed under paragraph (1) shall 
include a description of any direct cost reimbursements that the 
applicant agrees to provide to any State and local agencies with 
responsibility for security and safety--
        ``(A) at the LNG terminal; and
        ``(B) in proximity to vessels that serve the facility.''.

SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.

    Section 4 of the Natural Gas Act (15 U.S.C. 717c) is amended by 
adding at the end the following:
    ``(f)(1) In exercising its authority under this Act or the Natural 
Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may 
authorize a natural gas company (or any person that will be a natural 
gas company on completion of any proposed construction) to provide 
storage and storage-related services at market-based rates for new 
storage capacity related to a specific facility placed in service after 
the date of enactment of the Energy Policy Act of 2005, notwithstanding 
the fact that the company is unable to demonstrate that the company 
lacks market power, if the Commission determines that--
        ``(A) market-based rates are in the public interest and 
    necessary to encourage the construction of the storage capacity in 
    the area needing storage services; and
        ``(B) customers are adequately protected.
    ``(2) The Commission shall ensure that reasonable terms and 
conditions are in place to protect consumers.
    ``(3) If the Commission authorizes a natural gas company to charge 
market-based rates under this subsection, the Commission shall review 
periodically whether the market-based rate is just, reasonable, and not 
unduly discriminatory or preferential.''.

SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.

    (a) In General.--Section 15 of the Natural Gas Act (15 U.S.C. 717n) 
is amended--
        (1) by striking the section heading and inserting ``process 
    coordination; hearings; rules of procedure'';
        (2) by redesignating subsections (a) and (b) as subsections (e) 
    and (f), respectively; and
        (3) by striking ``sec. 15.'' and inserting the following:
    ``Sec. 15.(a) In this section, the term `Federal authorization'--
        ``(1) means any authorization required under Federal law with 
    respect to an application for authorization under section 3 or a 
    certificate of public convenience and necessity under section 7; 
    and
        ``(2) includes any permits, special use authorizations, 
    certifications, opinions, or other approvals as may be required 
    under Federal law with respect to an application for authorization 
    under section 3 or a certificate of public convenience and 
    necessity under section 7.
    ``(b) Designation as Lead Agency.--
        ``(1) In general.--The Commission shall act as the lead agency 
    for the purposes of coordinating all applicable Federal 
    authorizations and for the purposes of complying with the National 
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
        ``(2) Other agencies.--Each Federal and State agency 
    considering an aspect of an application for Federal authorization 
    shall cooperate with the Commission and comply with the deadlines 
    established by the Commission.
    ``(c) Schedule.--
        ``(1) Commission authority to set schedule.--The Commission 
    shall establish a schedule for all Federal authorizations. In 
    establishing the schedule, the Commission shall--
            ``(A) ensure expeditious completion of all such 
        proceedings; and
            ``(B) comply with applicable schedules established by 
        Federal law.
        ``(2) Failure to meet schedule.--If a Federal or State 
    administrative agency does not complete a proceeding for an 
    approval that is required for a Federal authorization in accordance 
    with the schedule established by the Commission, the applicant may 
    pursue remedies under section 19(d).
    ``(d) Consolidated Record.--The Commission shall, with the 
cooperation of Federal and State administrative agencies and officials, 
maintain a complete consolidated record of all decisions made or 
actions taken by the Commission or by a Federal administrative agency 
or officer (or State administrative agency or officer acting under 
delegated Federal authority) with respect to any Federal authorization. 
Such record shall be the record for--
        ``(1) appeals or reviews under the Coastal Zone Management Act 
    of 1972 (16 U.S.C. 1451 et seq.), provided that the record may be 
    supplemented as expressly provided pursuant to section 319 of that 
    Act; or
        ``(2) judicial review under section 19(d) of decisions made or 
    actions taken of Federal and State administrative agencies and 
    officials, provided that, if the Court determines that the record 
    does not contain sufficient information, the Court may remand the 
    proceeding to the Commission for further development of the 
    consolidated record.''.
    (b) Judicial Review.--Section 19 of the Natural Gas Act (15 U.S.C. 
717r) is amended by adding at the end the following:
    ``(d) Judicial Review.--
        ``(1) In general.--The United States Court of Appeals for the 
    circuit in which a facility subject to section 3 or section 7 is 
    proposed to be constructed, expanded, or operated shall have 
    original and exclusive jurisdiction over any civil action for the 
    review of an order or action of a Federal agency (other than the 
    Commission) or State administrative agency acting pursuant to 
    Federal law to issue, condition, or deny any permit, license, 
    concurrence, or approval (hereinafter collectively referred to as 
    `permit') required under Federal law, other than the Coastal Zone 
    Management Act of 1972 (16 U.S.C. 1451 et seq.).
        ``(2) Agency delay.--The United States Court of Appeals for the 
    District of Columbia shall have original and exclusive jurisdiction 
    over any civil action for the review of an alleged failure to act 
    by a Federal agency (other than the Commission) or State 
    administrative agency acting pursuant to Federal law to issue, 
    condition, or deny any permit required under Federal law, other 
    than the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
    seq.), for a facility subject to section 3 or section 7. The 
    failure of an agency to take action on a permit required under 
    Federal law, other than the Coastal Zone Management Act of 1972, in 
    accordance with the Commission schedule established pursuant to 
    section 15(c) shall be considered inconsistent with Federal law for 
    the purposes of paragraph (3).
        ``(3) Court action.--If the Court finds that such order or 
    action is inconsistent with the Federal law governing such permit 
    and would prevent the construction, expansion, or operation of the 
    facility subject to section 3 or section 7, the Court shall remand 
    the proceeding to the agency to take appropriate action consistent 
    with the order of the Court. If the Court remands the order or 
    action to the Federal or State agency, the Court shall set a 
    reasonable schedule and deadline for the agency to act on remand.
        ``(4) Commission action.--For any action described in this 
    subsection, the Commission shall file with the Court the 
    consolidated record of such order or action to which the appeal 
    hereunder relates.
        ``(5) Expedited review.--The Court shall set any action brought 
    under this subsection for expedited consideration.''.

SEC. 314. PENALTIES.

    (a) Criminal Penalties.--
        (1) Natural gas act.--Section 21 of the Natural Gas Act (15 
    U.S.C. 717t) is amended--
            (A) in subsection (a)--
                (i) by striking ``$5,000'' and inserting 
            ``$1,000,000''; and
                (ii) by striking ``two years'' and inserting ``5 
            years''; and
            (B) in subsection (b), by striking ``$500'' and inserting 
        ``$50,000''.
        (2) Natural gas policy act of 1978.--Section 504(c) of the 
    Natural Gas Policy Act of 1978 (15 U.S.C. 3414(c)) is amended--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by striking ``$5,000'' and 
            inserting ``$1,000,000''; and
                (ii) in subparagraph (B), by striking ``two years'' and 
            inserting ``5 years''; and
            (B) in paragraph (2), by striking ``$500 for each 
        violation'' and inserting ``$50,000 for each day on which the 
        offense occurs''.
    (b) Civil Penalties.--
        (1) Natural gas act.--The Natural Gas Act (15 U.S.C. 717 et 
    seq.) is amended--
            (A) by redesignating sections 22 through 24 as sections 24 
        through 26, respectively; and
            (B) by inserting after section 21 (15 U.S.C. 717t) the 
        following:


                        ``CIVIL PENALTY AUTHORITY

    ``Sec. 22. (a) Any person that violates this Act, or any rule, 
regulation, restriction, condition, or order made or imposed by the 
Commission under authority of this Act, shall be subject to a civil 
penalty of not more than $1,000,000 per day per violation for as long 
as the violation continues.
    ``(b) The penalty shall be assessed by the Commission after notice 
and opportunity for public hearing.
    ``(c) In determining the amount of a proposed penalty, the 
Commission shall take into consideration the nature and seriousness of 
the violation and the efforts to remedy the violation.''.
        (2) Natural gas policy act of 1978.--Section 504(b)(6)(A) of 
    the Natural Gas Policy Act of 1978 (15 U.S.C. 3414(b)(6)(A)) is 
    amended--
            (A) in clause (i), by striking ``$5,000'' and inserting 
        ``$1,000,000''; and
            (B) in clause (ii), by striking ``$25,000'' and inserting 
        ``$1,000,000''.

SEC. 315. MARKET MANIPULATION.

    The Natural Gas Act is amended by inserting after section 4 (15 
U.S.C. 717c) the following:


                   ``PROHIBITION ON MARKET MANIPULATION

    ``Sec. 4A. It shall be unlawful for any entity, directly or 
indirectly, to use or employ, in connection with the purchase or sale 
of natural gas or the purchase or sale of transportation services 
subject to the jurisdiction of the Commission, any manipulative or 
deceptive device or contrivance (as those terms are used in section 
10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b))) in 
contravention of such rules and regulations as the Commission may 
prescribe as necessary in the public interest or for the protection of 
natural gas ratepayers. Nothing in this section shall be construed to 
create a private right of action.''.

SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.

    The Natural Gas Act (15 U.S.C. 717 et seq.) is amended by inserting 
after section 22 the following:


                 ``NATURAL GAS MARKET TRANSPARENCY RULES

    ``Sec. 23. (a)(1) The Commission is directed to facilitate price 
transparency in markets for the sale or transportation of physical 
natural gas in interstate commerce, having due regard for the public 
interest, the integrity of those markets, fair competition, and the 
protection of consumers.
    ``(2) The Commission may prescribe such rules as the Commission 
determines necessary and appropriate to carry out the purposes of this 
section. The rules shall provide for the dissemination, on a timely 
basis, of information about the availability and prices of natural gas 
sold at wholesale and in interstate commerce to the Commission, State 
commissions, buyers and sellers of wholesale natural gas, and the 
public.
    ``(3) The Commission may--
        ``(A) obtain the information described in paragraph (2) from 
    any market participant; and
        ``(B) rely on entities other than the Commission to receive and 
    make public the information, subject to the disclosure rules in 
    subsection (b).
    ``(4) In carrying out this section, the Commission shall consider 
the degree of price transparency provided by existing price publishers 
and providers of trade processing services, and shall rely on such 
publishers and services to the maximum extent possible. The Commission 
may establish an electronic information system if it determines that 
existing price publications are not adequately providing price 
discovery or market transparency.
    ``(b)(1) Rules described in subsection (a)(2), if adopted, shall 
exempt from disclosure information the Commission determines would, if 
disclosed, be detrimental to the operation of an effective market or 
jeopardize system security.
    ``(2) In determining the information to be made available under 
this section and the time to make the information available, the 
Commission shall seek to ensure that consumers and competitive markets 
are protected from the adverse effects of potential collusion or other 
anticompetitive behaviors that can be facilitated by untimely public 
disclosure of transaction-specific information.
    ``(c)(1) Within 180 days of enactment of this section, the 
Commission shall conclude a memorandum of understanding with the 
Commodity Futures Trading Commission relating to information sharing, 
which shall include, among other things, provisions ensuring that 
information requests to markets within the respective jurisdiction of 
each agency are properly coordinated to minimize duplicative 
information requests, and provisions regarding the treatment of 
proprietary trading information.
    ``(2) Nothing in this section may be construed to limit or affect 
the exclusive jurisdiction of the Commodity Futures Trading Commission 
under the Commodity Exchange Act (7 U.S.C. 1 et seq.).
    ``(d)(1) The Commission shall not condition access to interstate 
pipeline transportation on the reporting requirements of this section.
    ``(2) The Commission shall not require natural gas producers, 
processors, or users who have a de minimis market presence to comply 
with the reporting requirements of this section.
    ``(e)(1) Except as provided in paragraph (2), no person shall be 
subject to any civil penalty under this section with respect to any 
violation occurring more than 3 years before the date on which the 
person is provided notice of the proposed penalty under section 22(b).
    ``(2) Paragraph (1) shall not apply in any case in which the 
Commission finds that a seller that has entered into a contract for the 
transportation or sale of natural gas subject to the jurisdiction of 
the Commission has engaged in fraudulent market manipulation activities 
materially affecting the contract in violation of section 4A.''.

SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation and consultation with the 
Secretary of Transportation, the Secretary of Homeland Security, the 
Federal Energy Regulatory Commission, and the Governors of the Coastal 
States, shall convene not less than 3 forums on liquefied natural gas.
    (b) Requirements.--The forums shall--
        (1) be located in areas where liquefied natural gas facilities 
    are under consideration;
        (2) be designed to foster dialogue among Federal officials, 
    State and local officials, the general public, independent experts, 
    and industry representatives; and
        (3) at a minimum, provide an opportunity for public education 
    and dialogue on--
            (A) the role of liquefied natural gas in meeting current 
        and future United States energy supply requirements and demand, 
        in the context of the full range of energy supply options;
            (B) the Federal and State siting and permitting processes;
            (C) the potential risks and rewards associated with 
        importing liquefied natural gas;
            (D) the Federal safety and environmental requirements 
        (including regulations) applicable to liquefied natural gas;
            (E) prevention, mitigation, and response strategies for 
        liquefied natural gas hazards; and
            (F) additional issues as appropriate.
    (c) Purpose.--The purpose of the forums shall be to identify and 
develop best practices for addressing the issues and challenges 
associated with liquefied natural gas imports, building on existing 
cooperative efforts.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN INDIVIDUALS.

    Section 20 of the Natural Gas Act (15 U.S.C. 717s) is amended by 
adding at the end the following:
    ``(d) In any proceedings under subsection (a), the court may 
prohibit, conditionally or unconditionally, and permanently or for such 
period of time as the court determines, any individual who is engaged 
or has engaged in practices constituting a violation of section 4A 
(including related rules and regulations) from--
        ``(1) acting as an officer or director of a natural gas 
    company; or
        ``(2) engaging in the business of--
            ``(A) the purchasing or selling of natural gas; or
            ``(B) the purchasing or selling of transmission services 
        subject to the jurisdiction of the Commission.''.

                         Subtitle C--Production

SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.

    (a) Storage on the Outer Continental Shelf.--Section 5(a)(5) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1334(a)(5)) is amended by 
inserting ``from any source'' after ``oil and gas''.
    (b) Natural Gas Defined.--Section 3(13) of the Deepwater Port Act 
of 1974 (33 U.S.C. 1502(13)) is amended by adding at the end before the 
semicolon the following: ``, natural gas liquids, liquefied petroleum 
gas, and condensate recovered from natural gas''.

SEC. 322. HYDRAULIC FRACTURING.

    Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (42 
U.S.C. 300h(d)) is amended to read as follows:
        ``(1) Underground injection.--The term `underground 
    injection'--
            ``(A) means the subsurface emplacement of fluids by well 
        injection; and
            ``(B) excludes--
                ``(i) the underground injection of natural gas for 
            purposes of storage; and
                ``(ii) the underground injection of fluids or propping 
            agents (other than diesel fuels) pursuant to hydraulic 
            fracturing operations related to oil, gas, or geothermal 
            production activities.''.

SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

    Section 502 of the Federal Water Pollution Control Act (33 U.S.C. 
1362) is amended by adding at the end the following:
        ``(24) Oil and gas exploration and production.--The term `oil 
    and gas exploration, production, processing, or treatment 
    operations or transmission facilities' means all field activities 
    or operations associated with exploration, production, processing, 
    or treatment operations, or transmission facilities, including 
    activities necessary to prepare a site for drilling and for the 
    movement and placement of drilling equipment, whether or not such 
    field activities or operations may be considered to be construction 
    activities.''.

                  Subtitle D--Naval Petroleum Reserve

SEC. 331. TRANSFER OF ADMINISTRATIVE JURISDICTION AND ENVIRONMENTAL 
              REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, KERN 
              COUNTY, CALIFORNIA.

    (a) Administration Jurisdiction Transfer to Secretary of the 
Interior.--Effective on the date of the enactment of this Act, 
administrative jurisdiction and control over all public domain lands 
included within Naval Petroleum Reserve Numbered 2 located in Kern 
County, California (other than the lands specified in subsection (b)), 
are transferred from the Secretary to the Secretary of the Interior for 
management, subject to subsection (c), in accordance with the laws 
governing management of the public lands, and the regulations 
promulgated under such laws, including the Mineral Leasing Act (30 
U.S.C. 181 et seq.) and the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.).
    (b) Exclusion of Certain Reserve Lands.--The transfer of 
administrative jurisdiction made by subsection (a) does not include the 
following lands:
        (1) That portion of Naval Petroleum Reserve Numbered 2 
    authorized for disposal under section 3403(a) of the Strom Thurmond 
    National Defense Authorization Act for Fiscal Year 1999 (Public Law 
    105-261; 10 U.S.C. 7420 note).
        (2) That portion of the surface estate of Naval Petroleum 
    Reserve Numbered 2 conveyed to the City of Taft, California, by 
    section 333.
    (c) Purpose of Transfer.--
        (1) Production of hydrocarbon resources.--Notwithstanding any 
    other provision of law, the principal purpose of the lands subject 
    to transfer under subsection (a) is the production of hydrocarbon 
    resources, and the Secretary of the Interior shall manage the lands 
    in a fashion consistent with this purpose. In managing the lands, 
    the Secretary of the Interior shall regulate operations to prevent 
    unnecessary degradation and to provide for ultimate economic 
    recovery of the resources.
        (2) Disposal authority and surface use.--The Secretary of the 
    Interior may make disposals of lands subject to transfer under 
    subsection (a), or allow commercial or non-profit surface use of 
    such lands, not to exceed 10 acres each, so long as the disposals 
    or surface uses do not materially interfere with the ultimate 
    economic recovery of the hydrocarbon resources of such lands. All 
    revenues received from the disposal of lands under this paragraph 
    or from allowing the surface use of such lands shall be deposited 
    in the Naval Petroleum Reserve Numbered 2 Lease Revenue Account 
    established by section 332.
    (d) Conforming Amendment.--Section 3403 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (Public Law 
105-261; 10 U.S.C. 7420 note) is amended by striking subsection (b).

SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE ACCOUNT.

    (a) Establishment.--There is established in the Treasury a special 
deposit account to be known as the ``Naval Petroleum Reserve Numbered 2 
Lease Revenue Account'' (in this section referred to as the ``lease 
revenue account''). The lease revenue account is a revolving account, 
and amounts in the lease revenue account shall be available to the 
Secretary of the Interior, without further appropriation, for the 
purposes specified in subsection (b).
    (b) Purposes of Account.--
        (1) Environmental-related costs.--The lease revenue account 
    shall be the sole and exclusive source of funds to pay for any and 
    all costs and expenses incurred by the United States for--
            (A) environmental investigations (other than any 
        environmental investigations that were conducted by the 
        Secretary before the transfer of the Naval Petroleum Reserve 
        Numbered 2 lands under section 331), remediation, compliance 
        actions, response, waste management, impediments, fines or 
        penalties, or any other costs or expenses of any kind arising 
        from, or relating to, conditions existing on or below the Naval 
        Petroleum Reserve Numbered 2 lands, or activities occurring or 
        having occurred on such lands, on or before the date of the 
        transfer of such lands; and
            (B) any future remediation necessitated as a result of pre-
        transfer and leasing activities on such lands.
        (2) Transition costs.--The lease revenue account shall also be 
    available for use by the Secretary of the Interior to pay for 
    transition costs incurred by the Department of the Interior 
    associated with the transfer and leasing of the Naval Petroleum 
    Reserve Numbered 2 lands.
    (c) Funding.--The lease revenue account shall consist of the 
following:
        (1) Notwithstanding any other provision of law, for a period of 
    three years after the date of the transfer of the Naval Petroleum 
    Reserve Numbered 2 lands under section 331, the sum of $500,000 per 
    year of revenue from leases entered into before that date, 
    including bonuses, rents, royalties, and interest charges collected 
    pursuant to the Federal Oil and Gas Royalty Management Act of 1982 
    (30 U.S.C. 1701 et. seq.), derived from the Naval Petroleum Reserve 
    Numbered 2 lands, shall be deposited into the lease revenue 
    account.
        (2) Subject to subsection (d), all revenues derived from leases 
    on Naval Petroleum Reserve Numbered 2 lands issued on or after the 
    date of the transfer of such lands, including bonuses, rents, 
    royalties, and interest charges collected pursuant to the Federal 
    Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et 
    seq.), shall be deposited into the lease revenue account.
    (d) Limitation.--Funds in the lease revenue account shall not 
exceed $3,000,000 at any one time. Whenever funds in the lease revenue 
account are obligated or expended so that the balance in the account 
falls below that amount, lease revenues referred to in subsection 
(c)(2) shall be deposited in the account to maintain a balance of 
$3,000,000.
    (e) Termination of Account.--At such time as the Secretary of the 
Interior certifies that remediation of all environmental contamination 
of Naval Petroleum Reserve Numbered 2 lands in existence as of the date 
of the transfer of such lands under section 331 has been successfully 
completed, that all costs and expenses of investigation, remediation, 
compliance actions, response, waste management, impediments, fines, or 
penalties associated with environmental contamination of such lands in 
existence as of the date of the transfer have been paid in full, and 
that the transition costs of the Department of the Interior referred to 
in subsection (b)(2) have been paid in full, the lease revenue account 
shall be terminated and any remaining funds shall be distributed in 
accordance with subsection (f).
    (f) Distribution of Remaining Funds.--Section 35 of the Mineral 
Leasing Act (30 U.S.C. 191) shall apply to the payment and distribution 
of all funds remaining in the lease revenue account upon its 
termination under subsection (e).

SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED 
              2, TO CITY OF TAFT, CALIFORNIA.

    (a) Conveyance.--Effective on the date of the enactment of this 
Act, there is conveyed to the City of Taft, California (in this section 
referred to as the ``City''), all surface right, title, and interest of 
the United States in and to a parcel of real property consisting of 
approximately 220 acres located in the NE\1/4\, the NE\1/4\ of the 
NW\1/4\, and the N\1/2\ of the SE\1/4\ of the NW\1/4\ of section 18, 
township 32 south, range 24 east, Mount Diablo meridian, Kern County, 
California.
    (b) Consideration.--The conveyance under subsection (a) is made 
without the payment of consideration by the City.
    (c) Treatment of Existing Rights.--The conveyance under subsection 
(a) is subject to valid existing rights, including Federal oil and gas 
lease SAC-019577.
    (d) Treatment of Minerals.--All coal, oil, gas, and other minerals 
within the lands conveyed under subsection (a) are reserved to the 
United States, except that the United States and its lessees, 
licensees, permittees, or assignees shall have no right of surface use 
or occupancy of the lands. Nothing in this subsection shall be 
construed to require the United States or its lessees, licensees, 
permittees, or assignees to support the surface of the conveyed lands.
    (e) Indemnify and Hold Harmless.--The City shall indemnify, defend, 
and hold harmless the United States for, from, and against, and the 
City shall assume all responsibility for, any and all liability of any 
kind or nature, including all loss, cost, expense, or damage, arising 
from the City's use or occupancy of, or operations on, the land 
conveyed under subsection (a), whether such use or occupancy of, or 
operations on, occurred before or occur after the date of the enactment 
of this Act.
    (f) Instrument of Conveyance.--Not later than 1 year after the date 
of the enactment of this Act, the Secretary shall execute, file, and 
cause to be recorded in the appropriate office a deed or other 
appropriate instrument documenting the conveyance made by this section.

SEC. 334. REVOCATION OF LAND WITHDRAWAL.

    Effective on the date of the enactment of this Act, the Executive 
Order of December 13, 1912, which created Naval Petroleum Reserve 
Numbered 2, is revoked in its entirety.

                   Subtitle E--Production Incentives

SEC. 341. DEFINITION OF SECRETARY.

    In this subtitle, the term ``Secretary'' means the Secretary of the 
Interior.

SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

    (a) Applicability of Section.--Notwithstanding any other provision 
of law, this section applies to all royalty in-kind accepted by the 
Secretary on or after the date of enactment of this Act under any 
Federal oil or gas lease or permit under--
        (1) section 36 of the Mineral Leasing Act (30 U.S.C. 192);
        (2) section 27 of the Outer Continental Shelf Lands Act (43 
    U.S.C. 1353); or
        (3) any other Federal law governing leasing of Federal land for 
    oil and gas development.
    (b) Terms and Conditions.--All royalty accruing to the United 
States shall, on the demand of the Secretary, be paid in-kind. If the 
Secretary makes such a demand, the following provisions apply to the 
payment:
        (1) Satisfaction of royalty obligation.--Delivery by, or on 
    behalf of, the lessee of the royalty amount and quality due under 
    the lease satisfies royalty obligation of the lessee for the amount 
    delivered, except that transportation and processing reimbursements 
    paid to, or deductions claimed by, the lessee shall be subject to 
    review and audit.
        (2) Marketable condition.--
            (A) Definition of marketable condition.--In this paragraph, 
        the term ``in marketable condition'' means sufficiently free 
        from impurities and otherwise in a condition that the royalty 
        production will be accepted by a purchaser under a sales 
        contract typical of the field or area in which the royalty 
        production was produced.
            (B) Requirement.--Royalty production shall be placed in 
        marketable condition by the lessee at no cost to the United 
        States.
        (3) Disposition by the secretary.--The Secretary may--
            (A) sell or otherwise dispose of any royalty production 
        taken in-kind (other than oil or gas transferred under section 
        27(a)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1353(a)(3)) for not less than the market price; and
            (B) transport or process (or both) any royalty production 
        taken in-kind.
        (4) Retention by the secretary.--The Secretary may, 
    notwithstanding section 3302 of title 31, United States Code, 
    retain and use a portion of the revenues from the sale of oil and 
    gas taken in-kind that otherwise would be deposited to 
    miscellaneous receipts, without regard to fiscal year limitation, 
    or may use oil or gas received as royalty taken in-kind (referred 
    to in this paragraph as ``royalty production'') to pay the cost 
    of--
            (A) transporting the royalty production;
            (B) processing the royalty production;
            (C) disposing of the royalty production; or
            (D) any combination of transporting, processing, and 
        disposing of the royalty production.
        (5) Limitation.--
            (A) In general.--Except as provided in subparagraph (B), 
        the Secretary may not use revenues from the sale of oil and gas 
        taken in-kind to pay for personnel, travel, or other 
        administrative costs of the Federal Government.
            (B) Exception.--Notwithstanding subparagraph (A), the 
        Secretary may use a portion of the revenues from royalty in-
        kind sales, without fiscal year limitation, to pay salaries and 
        other administrative costs directly related to the royalty in-
        kind program.
    (c) Reimbursement of Cost.--If the lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary shall--
        (1) reimburse the lessee for the reasonable costs of 
    transportation (not including gathering) from the lease to the 
    point of delivery or for processing costs; or
        (2) allow the lessee to deduct the transportation or processing 
    costs in reporting and paying royalties in-value for other Federal 
    oil and gas leases.
    (d) Benefit to the United States Required.--The Secretary may 
receive oil or gas royalties in-kind only if the Secretary determines 
that receiving royalties in-kind provides benefits to the United States 
that are greater than or equal to the benefits that are likely to have 
been received had royalties been taken in-value.
    (e) Reports.--
        (1) In general.--Not later than September 30, 2006, the 
    Secretary shall submit to Congress a report that addresses--
            (A) actions taken to develop business processes and 
        automated systems to fully support the royalty-in-kind 
        capability to be used in tandem with the royalty-in-value 
        approach in managing Federal oil and gas revenue; and
            (B) future royalty-in-kind businesses operation plans and 
        objectives.
        (2) Reports on oil or gas royalties taken in-kind.--For each of 
    fiscal years 2006 through 2015 in which the United States takes oil 
    or gas royalties in-kind from production in any State or from the 
    outer Continental Shelf, excluding royalties taken in-kind and sold 
    to refineries under subsection (h), the Secretary shall submit to 
    Congress a report that describes--
            (A) the 1 or more methodologies used by the Secretary to 
        determine compliance with subsection (d), including the 
        performance standard for comparing amounts received by the 
        United States derived from royalties in-kind to amounts likely 
        to have been received had royalties been taken in-value;
            (B) an explanation of the evaluation that led the Secretary 
        to take royalties in-kind from a lease or group of leases, 
        including the expected revenue effect of taking royalties in-
        kind;
            (C) actual amounts received by the United States derived 
        from taking royalties in-kind and costs and savings incurred by 
        the United States associated with taking royalties in-kind, 
        including administrative savings and any new or increased 
        administrative costs; and
            (D) an evaluation of other relevant public benefits or 
        detriments associated with taking royalties in-kind.
    (f) Deduction of Expenses.--
        (1) In general.--Before making payments under section 35 of the 
    Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the Outer 
    Continental Shelf Lands Act (43 U.S.C. 1337(g)) of revenues derived 
    from the sale of royalty production taken in-kind from a lease, the 
    Secretary shall deduct amounts paid or deducted under subsections 
    (b)(4) and (c) and deposit the amount of the deductions in the 
    miscellaneous receipts of the Treasury.
        (2) Accounting for deductions.--When the Secretary allows the 
    lessee to deduct transportation or processing costs under 
    subsection (c), the Secretary may not reduce any payments to 
    recipients of revenues derived from any other Federal oil and gas 
    lease as a consequence of that deduction.
    (g) Consultation With States.--The Secretary--
        (1) shall consult with a State before conducting a royalty in-
    kind program under this subtitle within the State;
        (2) may delegate management of any portion of the Federal 
    royalty in-kind program to the State except as otherwise prohibited 
    by Federal law; and
        (3) shall consult annually with any State from which Federal 
    oil or gas royalty is being taken in-kind to ensure, to the maximum 
    extent practicable, that the royalty in-kind program provides 
    revenues to the State greater than or equal to the revenues likely 
    to have been received had royalties been taken in-value.
    (h) Small Refineries.--
        (1) Preference.--If the Secretary finds that sufficient 
    supplies of crude oil are not available in the open market to 
    refineries that do not have their own source of supply for crude 
    oil, the Secretary may grant preference to those refineries in the 
    sale of any royalty oil accruing or reserved to the United States 
    under Federal oil and gas leases issued under any mineral leasing 
    law, for processing or use in those refineries at private sale at 
    not less than the market price.
        (2) Proration among refineries in production area.--In 
    disposing of oil under this subsection, the Secretary may, at the 
    discretion of the Secretary, prorate the oil among refineries 
    described in paragraph (1) in the area in which the oil is 
    produced.
    (i) Disposition to Federal Agencies.--
        (1) Onshore royalty.--Any royalty oil or gas taken by the 
    Secretary in-kind from onshore oil and gas leases may be sold at 
    not less than the market price to any Federal agency.
        (2) Offshore royalty.--Any royalty oil or gas taken in-kind 
    from a Federal oil or gas lease on the outer Continental Shelf may 
    be disposed of only under section 27 of the Outer Continental Shelf 
    Lands Act (43 U.S.C. 1353).
    (j) Federal Low-Income Energy Assistance Programs.--
        (1) Preference.--In disposing of royalty oil or gas taken in-
    kind under this section, the Secretary may grant a preference to 
    any person, including any Federal or State agency, for the purpose 
    of providing additional resources to any Federal low-income energy 
    assistance program.
        (2) Report.--Not later than 3 years after the date of enactment 
    of this Act, the Secretary shall submit a report to Congress--
            (A) assessing the effectiveness of granting preferences 
        specified in paragraph (1); and
            (B) providing a specific recommendation on the continuation 
        of authority to grant preferences.

SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.

    (a) Definition of Marginal Property.--Until such time as the 
Secretary issues regulations under subsection (e) that prescribe a 
different definition, in this section, the term ``marginal property'' 
means an onshore unit, communitization agreement, or lease not within a 
unit or communitization agreement, that produces on average the 
combined equivalent of less than 15 barrels of oil per well per day or 
90,000,000 British thermal units of gas per well per day calculated 
based on the average over the 3 most recent production months, 
including only wells that produce on more than half of the days during 
those 3 production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such time as 
the Secretary issues regulations under subsection (e) that prescribe 
different standards or requirements, the Secretary shall reduce the 
royalty rate on--
        (1) oil production from marginal properties as prescribed in 
    subsection (c) if the spot price of West Texas Intermediate crude 
    oil at Cushing, Oklahoma, is, on average, less than $15 per barrel 
    (adjusted in accordance with the Consumer Price Index for all-urban 
    consumers, United States city average, as published by the Bureau 
    of Labor Statistics) for 90 consecutive trading days; and
        (2) gas production from marginal properties as prescribed in 
    subsection (c) if the spot price of natural gas delivered at Henry 
    Hub, Louisiana, is, on average, less than $2.00 per million British 
    thermal units (adjusted in accordance with the Consumer Price Index 
    for all-urban consumers, United States city average, as published 
    by the Bureau of Labor Statistics) for 90 consecutive trading days.
    (c) Reduced Royalty Rate.--
        (1) In general.--When a marginal property meets the conditions 
    specified in subsection (b), the royalty rate shall be the lesser 
    of--
            (A) 5 percent; or
            (B) the applicable rate under any other statutory or 
        regulatory royalty relief provision that applies to the 
        affected production.
        (2) Period of effectiveness.--The reduced royalty rate under 
    this subsection shall be effective beginning on the first day of 
    the production month following the date on which the applicable 
    condition specified in subsection (b) is met.
    (d) Termination of Reduced Royalty Rate.--A royalty rate prescribed 
in subsection (c)(1) shall terminate--
        (1) with respect to oil production from a marginal property, on 
    the first day of the production month following the date on which--
            (A) the spot price of West Texas Intermediate crude oil at 
        Cushing, Oklahoma, on average, exceeds $15 per barrel (adjusted 
        in accordance with the Consumer Price Index for all-urban 
        consumers, United States city average, as published by the 
        Bureau of Labor Statistics) for 90 consecutive trading days; or
            (B) the property no longer qualifies as a marginal 
        property; and
        (2) with respect to gas production from a marginal property, on 
    the first day of the production month following the date on which--
            (A) the spot price of natural gas delivered at Henry Hub, 
        Louisiana, on average, exceeds $2.00 per million British 
        thermal units (adjusted in accordance with the Consumer Price 
        Index for all-urban consumers, United States city average, as 
        published by the Bureau of Labor Statistics) for 90 consecutive 
        trading days; or
            (B) the property no longer qualifies as a marginal 
        property.
    (e) Regulations Prescribing Different Relief.--
        (1) Discretionary regulations.--The Secretary may by regulation 
    prescribe different parameters, standards, and requirements for, 
    and a different degree or extent of, royalty relief for marginal 
    properties in lieu of those prescribed in subsections (a) through 
    (d).
        (2) Mandatory regulations.--Unless a determination is made 
    under paragraph (3), not later than 18 months after the date of 
    enactment of this Act, the Secretary shall by regulation--
            (A) prescribe standards and requirements for, and the 
        extent of royalty relief for, marginal properties for oil and 
        gas leases on the outer Continental Shelf; and
            (B) define what constitutes a marginal property on the 
        outer Continental Shelf for purposes of this section.
        (3) Report.--To the extent the Secretary determines that it is 
    not practicable to issue the regulations referred to in paragraph 
    (2), the Secretary shall provide a report to Congress explaining 
    such determination by not later than 18 months after the date of 
    enactment of this Act.
        (4) Considerations.--In issuing regulations under this 
    subsection, the Secretary may consider--
            (A) oil and gas prices and market trends;
            (B) production costs;
            (C) abandonment costs;
            (D) Federal and State tax provisions and the effects of 
        those provisions on production economics;
            (E) other royalty relief programs;
            (F) regional differences in average wellhead prices;
            (G) national energy security issues; and
            (H) other relevant matters, as determined by the Secretary.
    (f) Savings Provision.--Nothing in this section prevents a lessee 
from receiving royalty relief or a royalty reduction pursuant to any 
other law (including a regulation) that provides more relief than the 
amounts provided by this section.

SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
              SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Royalty Incentive Regulations for Ultra Deep Gas Wells.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, in addition to any other regulations that 
    may provide royalty incentives for natural gas produced from deep 
    wells on oil and gas leases issued pursuant to the Outer 
    Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), the Secretary 
    shall issue regulations granting royalty relief suspension volumes 
    of not less than 35 billion cubic feet with respect to the 
    production of natural gas from ultra deep wells on leases issued in 
    shallow waters less than 400 meters deep located in the Gulf of 
    Mexico wholly west of 87 degrees, 30 minutes west longitude. 
    Regulations issued under this subsection shall be retroactive to 
    the date that the notice of proposed rulemaking is published in the 
    Federal Register.
        (2) Suspension volumes.--The Secretary may grant suspension 
    volumes of not less than 35 billion cubic feet in any case in 
    which--
            (A) the ultra deep well is a sidetrack; or
            (B) the lease has previously produced from wells with a 
        perforated interval the top of which is at least 15,000 feet 
        true vertical depth below the datum at mean sea level.
        (3) Definitions.--In this subsection:
            (A) Ultra deep well.--The term ``ultra deep well'' means a 
        well drilled with a perforated interval, the top of which is at 
        least 20,000 true vertical depth below the datum at mean sea 
        level.
            (B) Sidetrack.--
                (i) In general.--The term ``sidetrack'' means a well 
            resulting from drilling an additional hole to a new 
            objective bottom-hole location by leaving a previously 
            drilled hole.
                (ii) Inclusion.--The term ``sidetrack'' includes--

                    (I) drilling a well from a platform slot reclaimed 
                from a previously drilled well;
                    (II) re-entering and deepening a previously drilled 
                well; and
                    (III) a bypass from a sidetrack, including drilling 
                around material blocking a hole or drilling to 
                straighten a crooked hole.

    (b) Royalty Incentive Regulations for Deep Gas Wells.--Not later 
than 180 days after the date of enactment of this Act, in addition to 
any other regulations that may provide royalty incentives for natural 
gas produced from deep wells on oil and gas leases issued pursuant to 
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), the 
Secretary shall issue regulations granting royalty relief suspension 
volumes with respect to production of natural gas from deep wells on 
leases issued in waters more than 200 meters but less than 400 meters 
deep located in the Gulf of Mexico wholly west of 87 degrees, 30 
minutes west longitude. The suspension volumes for deep wells within 
200 to 400 meters of water depth shall be calculated using the same 
methodology used to calculate the suspension volumes for deep wells in 
the shallower waters of the Gulf of Mexico, and in no case shall the 
suspension volumes for deep wells within 200 to 400 meters of water 
depth be lower than those for deep wells in shallower waters. 
Regulations issued under this subsection shall be retroactive to the 
date that the notice of proposed rulemaking is published in the Federal 
Register.
    (c) Limitations.--The Secretary may place limitations on the 
royalty relief granted under this section based on market price. The 
royalty relief granted under this section shall not apply to a lease 
for which deep water royalty relief is available.

SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--Subject to subsections (b) and (c), for each tract 
located in water depths of greater than 400 meters in the Western and 
Central Planning Area of the Gulf of Mexico (including the portion of 
the Eastern Planning Area of the Gulf of Mexico encompassing whole 
lease blocks lying west of 87 degrees, 30 minutes West longitude), any 
oil or gas lease sale under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) occurring during the 5-year period beginning on 
the date of enactment of this Act shall use the bidding system 
authorized under section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)).
    (b) Suspension of Royalties.--The suspension of royalties under 
subsection (a) shall be established at a volume of not less than--
        (1) 5,000,000 barrels of oil equivalent for each lease in water 
    depths of 400 to 800 meters;
        (2) 9,000,000 barrels of oil equivalent for each lease in water 
    depths of 800 to 1,600 meters;
        (3) 12,000,000 barrels of oil equivalent for each lease in 
    water depths of 1,600 to 2,000 meters; and
        (4) 16,000,000 barrels of oil equivalent for each lease in 
    water depths greater than 2,000 meters.
    (c) Limitation.--The Secretary may place limitations on royalty 
relief granted under this section based on market price.

SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.

    Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in the Planning 
Areas offshore Alaska'' after ``West longitude''.

SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN 
              ALASKA.

    (a) Transfer of Authority.--
        (1) Redesignation.--The Naval Petroleum Reserves Production Act 
    of 1976 (42 U.S.C. 6501 et seq.) is amended by redesignating 
    section 107 (42 U.S.C. 6507) as section 108.
        (2) Transfer.--The matter under the heading ``exploration of 
    national petroleum reserve in alaska'' under the heading ``energy 
    and minerals'' of title I of Public Law 96-514 (42 U.S.C. 6508) 
    is--
            (A) transferred to the Naval Petroleum Reserves Production 
        Act of 1976 (42 U.S.C. 6501 et seq.);
            (B) redesignated as section 107 of that Act; and
            (C) moved so as to appear after section 106 of that Act (42 
        U.S.C. 6506).
    (b) Competitive Leasing.--Section 107 of the Naval Petroleum 
Reserves Production Act of 1976 (as amended by subsection (a)(2)) is 
amended--
        (1) by striking the heading and all that follows through 
    ``Provided, That (1) activities'' and inserting the following:

``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

    ``(a) In General.--The Secretary shall conduct an expeditious 
program of competitive leasing of oil and gas in the Reserve in 
accordance with this Act.
    ``(b) Mitigation of Adverse Effects.--Activities'';
        (2) by striking ``Alaska (the Reserve); (2) the'' and inserting 
    ``Alaska''.
    ``(c) Land Use Planning; BLM Wilderness Study.--The'';
        (3) by striking ``Reserve; (3) the'' and inserting ``Reserve''.
    ``(d) First Lease Sale.--The;'';
        (4) by striking ``4332); (4) the'' and inserting ``4321 et 
    seq.)''.
    ``(e) Withdrawals.--The'';
        (5) by striking ``herein; (5) bidding'' and inserting ``under 
    this section''.
    ``(f) Bidding Systems.--Bidding'';
        (6) by striking ``629); (6) lease'' and inserting ``629)''.
    ``(g) Geological Structures.--Lease'';
        (7) by striking ``structures; (7) the'' and inserting 
    ``structures''.
    ``(h) Size of Lease Tracts.--The'';
        (8) by striking ``Secretary; (8)'' and all that follows through 
    ``Drilling, production,'' and inserting ``Secretary''.
    ``(i) Terms.--
        ``(1) In general.--Each lease shall be issued for an initial 
    period of not more than 10 years, and shall be extended for so long 
    thereafter as oil or gas is produced from the lease in paying 
    quantities, oil or gas is capable of being produced in paying 
    quantities, or drilling or reworking operations, as approved by the 
    Secretary, are conducted on the leased land.
        ``(2) Renewal of leases with discoveries.--At the end of the 
    primary term of a lease the Secretary shall renew for an additional 
    10-year term a lease that does not meet the requirements of 
    paragraph (1) if the lessee submits to the Secretary an application 
    for renewal not later than 60 days before the expiration of the 
    primary lease and the lessee certifies, and the Secretary agrees, 
    that hydrocarbon resources were discovered on one or more wells 
    drilled on the leased land in such quantities that a prudent 
    operator would hold the lease for potential future development.
        ``(3) Renewal of leases without discoveries.--At the end of the 
    primary term of a lease the Secretary shall renew for an additional 
    10-year term a lease that does not meet the requirements of 
    paragraph (1) if the lessee submits to the Secretary an application 
    for renewal not later than 60 days before the expiration of the 
    primary lease and pays the Secretary a renewal fee of $100 per acre 
    of leased land, and--
            ``(A) the lessee provides evidence, and the Secretary 
        agrees that, the lessee has diligently pursued exploration that 
        warrants continuation with the intent of continued exploration 
        or future potential development of the leased land; or
            ``(B) all or part of the lease--
                ``(i) is part of a unit agreement covering a lease 
            described in subparagraph (A); and
                ``(ii) has not been previously contracted out of the 
            unit.
        ``(4) Applicability.--This subsection applies to a lease that 
    is in effect on or after the date of enactment of the Energy Policy 
    Act of 2005.
        ``(5) Expiration for failure to produce.--Notwithstanding any 
    other provision of this Act, if no oil or gas is produced from a 
    lease within 30 years after the date of the issuance of the lease 
    the lease shall expire.
        ``(6) Termination.--No lease issued under this section covering 
    lands capable of producing oil or gas in paying quantities shall 
    expire because the lessee fails to produce the same due to 
    circumstances beyond the control of the lessee.
    ``(j) Unit Agreements.--
        ``(1) In general.--For the purpose of conservation of the 
    natural resources of all or part of any oil or gas pool, field, 
    reservoir, or like area, lessees (including representatives) of the 
    pool, field, reservoir, or like area may unite with each other, or 
    jointly or separately with others, in collectively adopting and 
    operating under a unit agreement for all or part of the pool, 
    field, reservoir, or like area (whether or not any other part of 
    the oil or gas pool, field, reservoir, or like area is already 
    subject to any cooperative or unit plan of development or 
    operation), if the Secretary determines the action to be necessary 
    or advisable in the public interest. In determining the public 
    interest, the Secretary should consider, among other things, the 
    extent to which the unit agreement will minimize the impact to 
    surface resources of the leases and will facilitate consolidation 
    of facilities.
        ``(2) Consultation.--In making a determination under paragraph 
    (1), the Secretary shall consult with and provide opportunities for 
    participation by the State of Alaska or a Regional Corporation (as 
    defined in section 3 of the Alaska Native Claims Settlement Act (43 
    U.S.C. 1602)) with respect to the creation or expansion of units 
    that include acreage in which the State of Alaska or the Regional 
    Corporation has an interest in the mineral estate.
        ``(3) Production allocation methodology.--(A) The Secretary may 
    use a production allocation methodology for each participating area 
    within a unit that includes solely Federal land in the Reserve.
        ``(B) The Secretary shall use a production allocation 
    methodology for each participating area within a unit that includes 
    Federal land in the Reserve and non-Federal land based on the 
    characteristics of each specific oil or gas pool, field, reservoir, 
    or like area to take into account reservoir heterogeneity and area 
    variation in reservoir producibility across diverse leasehold 
    interests. The implementation of the foregoing production 
    allocation methodology shall be controlled by agreement among the 
    affected lessors and lessees.
        ``(4) Benefit of operations.--Drilling, production,'';
        (9) by striking ``When separate'' and inserting the following:
        ``(5) Pooling.--If separate'';
        (10) by inserting ``(in consultation with the owners of the 
    other land)'' after ``determined by the Secretary of the 
    Interior'';
        (11) by striking ``thereto; (10) to'' and all that follows 
    through ``the terms provided therein'' and inserting ``to the 
    agreement.
    ``(k) Exploration Incentives.--
        ``(1) In general.--
            ``(A) Waiver, suspension, or reduction.--To encourage the 
        greatest ultimate recovery of oil or gas or in the interest of 
        conservation, the Secretary may waive, suspend, or reduce the 
        rental fees or minimum royalty, or reduce the royalty on an 
        entire leasehold (including on any lease operated pursuant to a 
        unit agreement), whenever (after consultation with the State of 
        Alaska and the North Slope Borough of Alaska and the 
        concurrence of any Regional Corporation for leases that include 
        land that was made available for acquisition by the Regional 
        Corporation under the provisions of section 1431(o) of the 
        Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 
        et seq.)) in the judgment of the Secretary it is necessary to 
        do so to promote development, or whenever in the judgment of 
        the Secretary the leases cannot be successfully operated under 
        the terms provided therein.
            ``(B) Applicability.--This paragraph applies to a lease 
        that is in effect on or after the date of enactment of the 
        Energy Policy Act of 2005.'';
        (12) by striking ``The Secretary is authorized to'' and 
    inserting the following:
        ``(2) Suspension of operations and production.--The Secretary 
    may'';
        (13) by striking ``In the event'' and inserting the following:
        ``(3) Suspension of payments.--If'';
        (14) by striking ``thereto; and (11) all'' and inserting ``to 
    the lease.
    ``(l) Receipts.--All'';
        (15) by redesignating subparagraphs (A), (B), and (C) as 
    paragraphs (1), (2), and (3), respectively;
        (16) by striking ``Any agency'' and inserting the following:
    ``(m) Explorations.--Any agency'';
        (17) by striking ``Any action'' and inserting the following:
    ``(n) Environmental Impact Statements.--
        ``(1) Judicial review.--Any action'';
        (18) by striking ``The detailed'' and inserting the following:
        ``(2) Initial lease sales.--The detailed'';
        (19) by striking ``section 104(b) of the Naval Petroleum 
    Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)'' 
    and inserting ``section 104(a)''; and
        (20) by adding at the end the following:
    ``(o) Regulations.--As soon as practicable after the date of 
enactment of the Energy Policy Act of 2005, the Secretary shall issue 
regulations to implement this section.
    ``(p) Waiver of Administration for Conveyed Lands.--
        ``(1) In general.--Notwithstanding section 14(g) of the Alaska 
    Native Claims Settlement Act (43 U.S.C. 1613(g))--
            ``(A) the Secretary of the Interior shall waive 
        administration of any oil and gas lease to the extent that the 
        lease covers any land in the Reserve in which all of the 
        subsurface estate is conveyed to the Arctic Slope Regional 
        Corporation (referred to in this subsection as the 
        `Corporation');
            ``(B)(i) in a case in which a conveyance of a subsurface 
        estate described in subparagraph (A) does not include all of 
        the land covered by the oil and gas lease, the person that owns 
        the subsurface estate in any particular portion of the land 
        covered by the lease shall be entitled to all of the revenues 
        reserved under the lease as to that portion, including, without 
        limitation, all the royalty payable with respect to oil or gas 
        produced from or allocated to that portion;
                ``(ii) in a case described in clause (i), the Secretary 
            of the Interior shall--

                    ``(I) segregate the lease into 2 leases, 1 of which 
                shall cover only the subsurface estate conveyed to the 
                Corporation; and
                    ``(II) waive administration of the lease that 
                covers the subsurface estate conveyed to the 
                Corporation; and

                ``(iii) the segregation of the lease described in 
            clause (ii)(I) has no effect on the obligations of the 
            lessee under either of the resulting leases, including 
            obligations relating to operations, production, or other 
            circumstances (other than payment of rentals or royalties); 
            and
            ``(C) nothing in this subsection limits the authority of 
        the Secretary of the Interior to manage the federally-owned 
        surface estate within the Reserve.''.
    (c) Conforming Amendments.--Section 104 of the Naval Petroleum 
Reserves Production Act of 1976 (42 U.S.C. 6504) is amended--
        (1) by striking subsection (a); and
        (2) by redesignating subsections (b) through (d) as subsections 
    (a) through (c), respectively.

SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.

    (a) Establishment.--
        (1) In general.--The Secretary of the Interior shall establish 
    a long-term initiative to be known as the ``North Slope Science 
    Initiative'' (referred to in this section as the ``Initiative'').
        (2) Purpose.--The purpose of the Initiative shall be to 
    implement efforts to coordinate collection of scientific data that 
    will provide a better understanding of the terrestrial, aquatic, 
    and marine ecosystems of the North Slope of Alaska.
    (b) Objectives.--To ensure that the Initiative is conducted through 
a comprehensive science strategy and implementation plan, the 
Initiative shall, at a minimum--
        (1) identify and prioritize information needs for inventory, 
    monitoring, and research activities to address the individual and 
    cumulative effects of past, ongoing, and anticipated development 
    activities and environmental change on the North Slope;
        (2) develop an understanding of information needs for 
    regulatory and land management agencies, local governments, and the 
    public;
        (3) focus on prioritization of pressing natural resource 
    management and ecosystem information needs, coordination, and 
    cooperation among agencies and organizations;
        (4) coordinate ongoing and future inventory, monitoring, and 
    research activities to minimize duplication of effort, share 
    financial resources and expertise, and assure the collection of 
    quality information;
        (5) identify priority needs not addressed by agency science 
    programs in effect on the date of enactment of this Act and develop 
    a funding strategy to meet those needs;
        (6) provide a consistent approach to high caliber science, 
    including inventory, monitoring, and research;
        (7) maintain and improve public and agency access to--
            (A) accumulated and ongoing research; and
            (B) contemporary and traditional local knowledge; and
        (8) ensure through appropriate peer review that the science 
    conducted by participating agencies and organizations is of the 
    highest technical quality.
    (c) Membership.--
        (1) In general.--To ensure comprehensive collection of 
    scientific data, in carrying out the Initiative, the Secretary 
    shall consult and coordinate with Federal, State, and local 
    agencies that have responsibilities for land and resource 
    management across the North Slope.
        (2) Cooperative agreements.--The Secretary shall enter into 
    cooperative agreements with the State of Alaska, the North Slope 
    Borough, the Arctic Slope Regional Corporation, and other Federal 
    agencies as appropriate to coordinate efforts, share resources, and 
    fund projects under this section.
    (d) Science Technical Advisory Panel.--
        (1) In general.--The Initiative shall include a panel to 
    provide advice on proposed inventory, monitoring, and research 
    functions.
        (2) Membership.--The panel described in paragraph (1) shall 
    consist of a representative group of not more than 15 scientists 
    and technical experts from diverse professions and interests, 
    including the oil and gas industry, subsistence users, Native 
    Alaskan entities, conservation organizations, wildlife management 
    organizations, and academia, as determined by the Secretary.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this section and each year thereafter, the Secretary shall publish a 
report that describes the studies and findings of the Initiative.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

    (a) In General.--The Secretary, in cooperation with the Secretary 
of Agriculture, shall establish a program not later than 1 year after 
the date of enactment of this Act to remediate, reclaim, and close 
orphaned, abandoned, or idled oil and gas wells located on land 
administered by the land management agencies within the Department of 
the Interior and the Department of Agriculture.
    (b) Activities.--The program under subsection (a) shall--
        (1) include a means of ranking orphaned, abandoned, or idled 
    wells sites for priority in remediation, reclamation, and closure, 
    based on public health and safety, potential environmental harm, 
    and other land use priorities;
        (2) provide for identification and recovery of the costs of 
    remediation, reclamation, and closure from persons or other 
    entities currently providing a bond or other financial assurance 
    required under State or Federal law for an oil or gas well that is 
    orphaned, abandoned, or idled; and
        (3) provide for recovery from the persons or entities 
    identified under paragraph (2), or their sureties or guarantors, of 
    the costs of remediation, reclamation, and closure of such wells.
    (c) Cooperation and Consultations.--In carrying out the program 
under subsection (a), the Secretary shall--
        (1) work cooperatively with the Secretary of Agriculture and 
    the States within which Federal land is located; and
        (2) consult with the Secretary of Energy and the Interstate Oil 
    and Gas Compact Commission.
    (d) Plan.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, in cooperation with the Secretary of 
Agriculture, shall submit to Congress a plan for carrying out the 
program under subsection (a).
    (e) Idled Well.--For the purposes of this section, a well is idled 
if--
        (1) the well has been nonoperational for at least 7 years; and
        (2) there is no anticipated beneficial use for the well.
    (f) Federal Reimbursement for Orphaned Well Reclamation Pilot 
Program.--
        (1) Reimbursement for remediating, reclaiming, and closing 
    wells on land subject to a new lease.--The Secretary shall carry 
    out a pilot program under which, in issuing a new oil and gas lease 
    on federally owned land on which 1 or more orphaned wells are 
    located, the Secretary--
            (A) may require, other than as a condition of the lease, 
        that the lessee remediate, reclaim, and close in accordance 
        with standards established by the Secretary, all orphaned wells 
        on the land leased; and
            (B) shall develop a program to reimburse a lessee, through 
        a royalty credit against the Federal share of royalties owed or 
        other means, for the reasonable actual costs of remediating, 
        reclaiming, and closing the orphaned wells pursuant to that 
        requirement.
        (2) Reimbursement for reclaiming orphaned wells on other 
    land.--In carrying out this subsection, the Secretary--
            (A) may authorize any lessee under an oil and gas lease on 
        federally owned land to reclaim in accordance with the 
        Secretary's standards--
                (i) an orphaned well on unleased federally owned land; 
            or
                (ii) an orphaned well located on an existing lease on 
            federally owned land for the reclamation of which the 
            lessee is not legally responsible; and
            (B) shall develop a program to provide reimbursement of 100 
        percent of the reasonable actual costs of remediating, 
        reclaiming, and closing the orphaned well, through credits 
        against the Federal share of royalties or other means.
        (3) Regulations.--The Secretary may issue such regulations as 
    are appropriate to carry out this subsection.
    (g) Technical Assistance Program for Non-Federal Land.--
        (1) In general.--The Secretary of Energy shall establish a 
    program to provide technical and financial assistance to oil and 
    gas producing States to facilitate State efforts over a 10-year 
    period to ensure a practical and economical remedy for 
    environmental problems caused by orphaned or abandoned oil and gas 
    exploration or production well sites on State or private land.
        (2) Assistance.--The Secretary of Energy shall work with the 
    States, through the Interstate Oil and Gas Compact Commission, to 
    assist the States in quantifying and mitigating environmental risks 
    of onshore orphaned or abandoned oil or gas wells on State and 
    private land.
        (3) Activities.--The program under paragraph (1) shall 
    include--
            (A) mechanisms to facilitate identification, if feasible, 
        of the persons currently providing a bond or other form of 
        financial assurance required under State or Federal law for an 
        oil or gas well that is orphaned or abandoned;
            (B) criteria for ranking orphaned or abandoned well sites 
        based on factors such as public health and safety, potential 
        environmental harm, and other land use priorities;
            (C) information and training programs on best practices for 
        remediation of different types of sites; and
            (D) funding of State mitigation efforts on a cost-shared 
        basis.
    (h) Authorization of Appropriations.--
        (1) In general.--There are authorized to be appropriated to 
    carry out this section $25,000,000 for each of fiscal years 2006 
    through 2010.
        (2) Use.--Of the amounts authorized under paragraph (1), 
    $5,000,000 are authorized for each fiscal year for activities under 
    subsection (f).

SEC. 350. COMBINED HYDROCARBON LEASING.

    (a) Special Provisions Regarding Leasing.--Section 17(b)(2) of the 
Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
        (1) by inserting ``(A)'' after ``(2)''; and
        (2) by adding at the end the following:
    ``(B) For any area that contains any combination of tar sand and 
oil or gas (or both), the Secretary may issue under this Act, 
separately--
        ``(i) a lease for exploration for and extraction of tar sand; 
    and
        ``(ii) a lease for exploration for and development of oil and 
    gas.
    ``(C) A lease issued for tar sand shall be issued using the same 
bidding process, annual rental, and posting period as a lease issued 
for oil and gas, except that the minimum acceptable bid required for a 
lease issued for tar sand shall be $2 per acre.
    ``(D) The Secretary may waive, suspend, or alter any requirement 
under section 26 that a permittee under a permit authorizing 
prospecting for tar sand must exercise due diligence, to promote any 
resource covered by a combined hydrocarbon lease.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B) of the Mineral 
Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the second sentence 
by inserting ``, subject to paragraph (2)(B),'' after ``Secretary''.
    (c) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary shall issue final regulations to 
implement this section.

SEC. 351. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

    (a) Short Title.--This section may be cited as the ``National 
Geological and Geophysical Data Preservation Program Act of 2005''.
    (b) Program.--The Secretary shall carry out a National Geological 
and Geophysical Data Preservation Program in accordance with this 
section--
        (1) to archive geologic, geophysical, and engineering data, 
    maps, well logs, and samples;
        (2) to provide a national catalog of such archival material; 
    and
        (3) to provide technical and financial assistance related to 
    the archival material.
    (c) Plan.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a plan for the 
implementation of the Program.
    (d) Data Archive System.--
        (1) Establishment.--The Secretary shall establish, as a 
    component of the Program, a data archive system to provide for the 
    storage, preservation, and archiving of subsurface, surface, 
    geological, geophysical, and engineering data and samples. The 
    Secretary, in consultation with the Advisory Committee, shall 
    develop guidelines relating to the data archive system, including 
    the types of data and samples to be preserved.
        (2) System components.--The system shall be comprised of State 
    agencies that elect to be part of the system and agencies within 
    the Department of the Interior that maintain geological and 
    geophysical data and samples that are designated by the Secretary 
    in accordance with this subsection. The Program shall provide for 
    the storage of data and samples through data repositories operated 
    by such agencies.
        (3) Limitation of designation.--The Secretary may not designate 
    a State agency as a component of the data archive system unless 
    that agency is the agency that acts as the geological survey in the 
    State.
        (4) Data from federal land.--The data archive system shall 
    provide for the archiving of relevant subsurface data and samples 
    obtained from Federal land--
            (A) in the most appropriate repository designated under 
        paragraph (2), with preference being given to archiving data in 
        the State in which the data were collected; and
            (B) consistent with all applicable law and requirements 
        relating to confidentiality and proprietary data.
    (e) National Catalog.--
        (1) In general.--As soon as practicable after the date of 
    enactment of this Act, the Secretary shall develop and maintain, as 
    a component of the Program, a national catalog that identifies--
            (A) data and samples available in the data archive system 
        established under subsection (d);
            (B) the repository for particular material in the system; 
        and
            (C) the means of accessing the material.
        (2) Availability.--The Secretary shall make the national 
    catalog accessible to the public on the site of the Survey on the 
    Internet, consistent with all applicable requirements related to 
    confidentiality and proprietary data.
    (f) Advisory Committee.--
        (1) In general.--The Advisory Committee shall advise the 
    Secretary on planning and implementation of the Program.
        (2) New duties.--In addition to its duties under the National 
    Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.), the Advisory 
    Committee shall perform the following duties:
            (A) Advise the Secretary on developing guidelines and 
        procedures for providing assistance for facilities under 
        subsection (g)(1).
            (B) Review and critique the draft implementation plan 
        prepared by the Secretary under subsection (c).
            (C) Identify useful studies of data archived under the 
        Program that will advance understanding of the Nation's energy 
        and mineral resources, geologic hazards, and engineering 
        geology.
            (D) Review the progress of the Program in archiving 
        significant data and preventing the loss of such data, and the 
        scientific progress of the studies funded under the Program.
            (E) Include in the annual report to the Secretary required 
        under section 5(b)(3) of the National Geologic Mapping Act of 
        1992 (43 U.S.C. 31d(b)(3)) an evaluation of the progress of the 
        Program toward fulfilling the purposes of the Program under 
        subsection (b).
    (g) Financial Assistance.--
        (1) Archive facilities.--Subject to the availability of 
    appropriations, the Secretary shall provide financial assistance to 
    a State agency that is designated under subsection (d)(2) for 
    providing facilities to archive energy material.
        (2) Studies.--Subject to the availability of appropriations, 
    the Secretary shall provide financial assistance to any State 
    agency designated under subsection (d)(2) for studies and technical 
    assistance activities that enhance understanding, interpretation, 
    and use of materials archived in the data archive system 
    established under subsection (d).
        (3) Federal share.--The Federal share of the cost of an 
    activity carried out with assistance under this subsection shall be 
    not more than 50 percent of the total cost of the activity.
        (4) Private contributions.--The Secretary shall apply to the 
    non-Federal share of the cost of an activity carried out with 
    assistance under this subsection the value of private contributions 
    of property and services used for that activity.
    (h) Report.--The Secretary shall include in each report under 
section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C. 
31g)--
        (1) a description of the status of the Program;
        (2) an evaluation of the progress achieved in developing the 
    Program during the period covered by the report; and
        (3) any recommendations for legislative or other action the 
    Secretary considers necessary and appropriate to fulfill the 
    purposes of the Program under subsection (b).
    (i) Maintenance of State Effort.--It is the intent of Congress that 
the States not use this section as an opportunity to reduce State 
resources applied to the activities that are the subject of the 
Program.
    (j) Definitions.--In this section:
        (1) Advisory committee.--The term ``Advisory Committee'' means 
    the advisory committee established under section 5 of the National 
    Geologic Mapping Act of 1992 (43 U.S.C. 31d).
        (2) Program.--The term ``Program'' means the National 
    Geological and Geophysical Data Preservation Program carried out 
    under this section.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    the Interior, acting through the Director of the United States 
    Geological Survey.
        (4) Survey.--The term ``Survey'' means the United States 
    Geological Survey.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $30,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.

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

SEC. 353. GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote natural gas 
production from the natural gas hydrate resources on the outer 
Continental Shelf and Federal lands in Alaska by providing royalty 
incentives.
    (b) Suspension of Royalties.--
        (1) In general.--The Secretary may grant royalty relief in 
    accordance with this section for natural gas produced from gas 
    hydrate resources under an eligible lease.
        (2) Eligible leases.--A lease shall be an eligible lease for 
    purposes of this section if--
            (A) it is issued under the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.), or is an oil and gas lease issued 
        for onshore Federal lands in Alaska;
            (B) it is issued prior to January 1, 2016; and
            (C) production under the lease of natural gas from gas 
        hydrate resources commences prior to January 1, 2018.
        (3) Amount of relief.--The Secretary shall conduct a rulemaking 
    and grant royalty relief under this section as a suspension volume 
    if the Secretary determines that such royalty relief would 
    encourage production of natural gas from gas hydrate resources from 
    an eligible lease. The maximum suspension volume shall be 30 
    billion cubic feet of natural gas per lease. Such relief shall be 
    in addition to any other royalty relief under any other provision 
    applicable to the lease that does not specifically grant a gas 
    hydrate production incentive. Such royalty suspension volume shall 
    be applied to any eligible production occurring on or after the 
    date of publication of the advanced notice of proposed rulemaking.
        (4) Limitation.--The Secretary may place limitations on royalty 
    relief granted under this section based on market price.
    (c) Application.--This section shall apply to any eligible lease 
issued before, on, or after the date of enactment of this Act.
    (d) Rulemakings.--
        (1) Requirement.--The Secretary shall publish the advanced 
    notice of proposed rulemaking within 180 days after the date of 
    enactment of this Act and complete the rulemaking implementing this 
    section within 365 days after the date of enactment of this Act.
        (2) Gas hydrate resources defined.--Such regulations shall 
    define the term ``gas hydrate resources'' to include both the 
    natural gas content of gas hydrates within the hydrate stability 
    zone and free natural gas trapped by and beneath the hydrate 
    stability zone.
    (e) Review.--Not later than 365 days after the date of enactment of 
this Act, the Secretary, in consultation with the Secretary of Energy, 
shall carry out a review of, and submit to Congress a report on, 
further opportunities to enhance production of natural gas from gas 
hydrate resources on the outer Continental Shelf and on Federal lands 
in Alaska through the provision of other production incentives or 
through technical or financial assistance.

SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON 
              DIOXIDE INJECTION.

    (a) Production Incentive.--
        (1) Findings.--Congress finds the following:
            (A) Approximately two-thirds of the original oil in place 
        in the United States remains unproduced.
            (B) Enhanced oil and natural gas production from the 
        sequestering of carbon dioxide and other appropriate gases has 
        the potential to increase oil and natural gas production.
            (C) Capturing and productively using carbon dioxide would 
        help reduce the carbon intensity of the economy.
        (2) Purpose.--The purpose of this section is--
            (A) to promote the capturing, transportation, and injection 
        of produced carbon dioxide, natural carbon dioxide, and other 
        appropriate gases or other matter for sequestration into oil 
        and gas fields; and
            (B) to promote oil and natural gas production from the 
        outer Continental Shelf and onshore Federal lands under lease 
        by providing royalty incentives to use enhanced recovery 
        techniques using injection of the substances referred to in 
        subparagraph (A).
    (b) Suspension of Royalties.--
        (1) In general.--If the Secretary determines that reduction of 
    the royalty under a Federal oil and gas lease that is an eligible 
    lease is in the public interest and promotes the purposes of this 
    section, the Secretary shall undertake a rulemaking to provide for 
    such reduction for an eligible lease.
        (2) Rulemakings.--The Secretary shall publish the advanced 
    notice of proposed rulemaking within 180 days after the date of 
    enactment of this Act and complete the rulemaking implementing this 
    section within 365 days after the date of enactment of this Act.
        (3) Eligible leases.--A lease shall be an eligible lease for 
    purposes of this section if--
            (A) it is a lease for production of oil and gas from the 
        outer Continental Shelf or Federal onshore lands;
            (B) the injection of the substances referred to in 
        subsection (a)(2)(A) will be used as an enhanced recovery 
        technique on such lease; and
            (C) the Secretary determines that the lease contains oil or 
        gas that would not likely be produced without the royalty 
        reduction provided under this section.
        (4) Amount of relief.--The rulemaking shall provide for a 
    suspension volume, which shall not exceed 5,000,000 barrels of oil 
    equivalent for each eligible lease. Such suspension volume shall be 
    applied to any production from an eligible lease occurring on or 
    after the date of publication of any advanced notice of proposed 
    rulemaking under this subsection.
        (5) Limitation.--The Secretary may place limitations on the 
    royalty reduction granted under this section based on market price.
        (6) Application.--This section shall apply to any eligible 
    lease issued before, on, or after the date of enactment of this 
    Act.
    (c) Demonstration Program.--
        (1) Establishment.--
            (A) In general.--The Secretary of Energy shall establish a 
        competitive grant program to provide grants to producers of oil 
        and gas to carry out projects to inject carbon dioxide for the 
        purpose of enhancing recovery of oil or natural gas while 
        increasing the sequestration of carbon dioxide.
            (B) Projects.--The demonstration program shall provide 
        for--
                (i) not more than 10 projects in the Willistin Basin in 
            North Dakota and Montana; and
                (ii) 1 project in the Cook Inlet Basin in Alaska.
        (2) Requirements.--
            (A) In general.--The Secretary of Energy shall issue 
        requirements relating to applications for grants under 
        paragraph (1).
            (B) Rulemaking.--The issuance of requirements under 
        subparagraph (A) shall not require a rulemaking.
            (C) Minimum requirements.--At a minimum, the Secretary 
        shall require under subparagraph (A) that an application for a 
        grant include--
                (i) a description of the project proposed in the 
            application;
                (ii) an estimate of the production increase and the 
            duration of the production increase from the project, as 
            compared to conventional recovery techniques, including 
            water flooding;
                (iii) an estimate of the carbon dioxide sequestered by 
            project, over the life of the project;
                (iv) a plan to collect and disseminate data relating to 
            each project to be funded by the grant;
                (v) a description of the means by which the project 
            will be sustainable without Federal assistance after the 
            completion of the term of the grant;
                (vi) a complete description of the costs of the 
            project, including acquisition, construction, operation, 
            and maintenance costs over the expected life of the 
            project;
                (vii) a description of which costs of the project will 
            be supported by Federal assistance under this section; and
                (viii) a description of any secondary or tertiary 
            recovery efforts in the field and the efficacy of water 
            flood recovery techniques used.
        (3) Partners.--An applicant for a grant under paragraph (1) may 
    carry out a project under a pilot program in partnership with 1 or 
    more other public or private entities.
        (4) Selection criteria.--In evaluating applications under this 
    subsection, the Secretary of Energy shall--
            (A) consider the previous experience with similar projects 
        of each applicant; and
            (B) give priority consideration to applications that--
                (i) are most likely to maximize production of oil and 
            gas in a cost-effective manner;
                (ii) sequester significant quantities of carbon dioxide 
            from anthropogenic sources;
                (iii) 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 
            section is completed; and
                (iv) minimize any adverse environmental effects from 
            the project.
        (5) Demonstration program requirements.--
            (A) Maximum amount.--The Secretary of Energy shall not 
        provide more than $3,000,000 in Federal assistance under this 
        subsection to any applicant.
            (B) Cost sharing.--The Secretary of Energy shall require 
        cost-sharing under this subsection in accordance with section 
        988.
            (C) Period of grants.--
                (i) In general.--A project funded by a grant under this 
            subsection shall begin construction not later than 2 years 
            after the date of provision of the grant, but in any case 
            not later than December 31, 2010.
                (ii) Term.--The Secretary shall not provide grant funds 
            to any applicant under this subsection for a period of more 
            than 5 years.
        (6) Transfer of information and knowledge.--The Secretary of 
    Energy shall establish mechanisms to ensure that the information 
    and knowledge gained by participants in the program under this 
    subsection are transferred among other participants and interested 
    persons, including other applicants that submitted applications for 
    a grant under this subsection.
        (7) Schedule.--
            (A) Publication.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Energy shall publish in 
        the Federal Register, and elsewhere, as appropriate, a request 
        for applications to carry out projects under this subsection.
            (B) Date for applications.--An application for a grant 
        under this subsection shall be submitted not later than 180 
        days after the date of publication of the request under 
        subparagraph (A).
            (C) Selection.--After the date by which applications for 
        grants are required to be submitted under subparagraph (B), the 
        Secretary of Energy, in a timely manner, shall select, after 
        peer review and based on the criteria under paragraph (4), 
        those projects to be awarded a grant under this subsection.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

    (a) Assessment.--The Secretary of Energy shall assess the economic 
implications of the dependence of the State of Hawaii on oil as the 
principal source of energy for the State, including--
        (1) the short- and long-term prospects for crude oil supply 
    disruption and price volatility and potential impacts on the 
    economy of Hawaii;
        (2) the economic relationship between oil-fired generation of 
    electricity from residual fuel and refined petroleum products 
    consumed for ground, marine, and air transportation;
        (3) the technical and economic feasibility of increasing the 
    contribution of renewable energy resources for generation of 
    electricity, on an island-by-island basis, including--
            (A) siting and facility configuration;
            (B) environmental, operational, and safety considerations;
            (C) the availability of technology;
            (D) the effects on the utility system, including 
        reliability;
            (E) infrastructure and transport requirements;
            (F) community support; and
            (G) other factors affecting the economic impact of such an 
        increase and any effect on the economic relationship described 
        in paragraph (2);
        (4) the technical and economic feasibility of using liquefied 
    natural gas to displace residual fuel oil for electric generation, 
    including neighbor island opportunities, and the effect of the 
    displacement on the economic relationship described in paragraph 
    (2), including--
            (A) the availability of supply;
            (B) siting and facility configuration for onshore and 
        offshore liquefied natural gas receiving terminals;
            (C) the factors described in subparagraphs (B) through (F) 
        of paragraph (3); and
            (D) other economic factors;
        (5) the technical and economic feasibility of using renewable 
    energy sources (including hydrogen) for ground, marine, and air 
    transportation energy applications to displace the use of refined 
    petroleum products, on an island-by-island basis, and the economic 
    impact of the displacement on the relationship described in 
    paragraph (2); and
        (6) an island-by-island approach to--
            (A) the development of hydrogen from renewable resources; 
        and
            (B) the application of hydrogen to the energy needs of 
        Hawaii.
    (b) Contracting Authority.--The Secretary of Energy may carry out 
the assessment under subsection (a) directly or, in whole or in part, 
through 1 or more contracts with qualified public or private entities.
    (c) Report.--Not later than 300 days after the date of enactment of 
this Act, the Secretary of Energy shall prepare (in consultation with 
agencies of the State of Hawaii and other stakeholders, as 
appropriate), and submit to Congress, a report describing the findings, 
conclusions, and recommendations resulting from the assessment.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 356. DENALI COMMISSION.

    (a) Definition of Commission.--In this section, the term 
``Commission'' means the Denali Commission established by the Denali 
Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105-277).
    (b) Energy Programs.--The Commission shall use amounts made 
available under subsection (d) to carry out energy programs, 
including--
        (1) energy generation and development, including--
            (A) fuel cells, hydroelectric, solar, wind, wave, and tidal 
        energy; and
            (B) alternative energy sources;
        (2) the construction of energy transmission, including 
    interties;
        (3) the replacement and cleanup of fuel tanks;
        (4) the construction of fuel transportation networks and 
    related facilities;
        (5) power cost equalization programs; and
        (6) projects using coal as a fuel, including coal gasification 
    projects.
    (c) Open Meetings.--
        (1) In general.--Except as provided in paragraph (2), a meeting 
    of the Commission shall be open to the public if--
            (A) the Commission members take action on behalf of the 
        Commission; or
            (B) the deliberations of the Commission determine, or 
        result in the joint conduct or disposition of, official 
        Commission business.
        (2) Exceptions.--Paragraph (1) shall not apply to any portion 
    of a Commission meeting for which the Commission, in public 
    session, votes to close the meeting for the reasons described in 
    paragraph (2), (4), (5), or (6) of subsection (c) of section 552b 
    of title 5, United States Code.
        (3) Public notice.--
            (A) In general.--At least 1 week before a meeting of the 
        Commission, the Commission shall make a public announcement of 
        the meeting that describes--
                (i) the time, place, and subject matter of the meeting;
                (ii) whether the meeting is to be open or closed to the 
            public; and
                (iii) the name and telephone number of an appropriate 
            person to respond to requests for information about the 
            meeting.
            (B) Additional notice.--The Commission shall make a public 
        announcement of any change to the information made available 
        under subparagraph (A) at the earliest practicable time.
        (4) Minutes.--The Commission shall keep, and make available to 
    the public, a transcript, electronic recording, or minutes from 
    each Commission meeting, except for portions of the meeting closed 
    under paragraph (2).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission not more than $55,000,000 for each of 
fiscal years 2006 through 2015 to carry out subsection (b).

SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

    (a) In General.--The Secretary shall conduct an inventory and 
analysis of oil and natural gas resources beneath all of the waters of 
the United States Outer Continental Shelf (``OCS''). The inventory and 
analysis shall--
        (1) use available data on oil and gas resources in areas 
    offshore of Mexico and Canada that will provide information on 
    trends of oil and gas accumulation in areas of the OCS;
        (2) use any available technology, except drilling, but 
    including 3-D seismic technology to obtain accurate resource 
    estimates;
        (3) analyze how resource estimates in OCS areas have changed 
    over time in regards to gathering geological and geophysical data, 
    initial exploration, or full field development, including areas 
    such as the deepwater and subsalt areas in the Gulf of Mexico;
        (4) estimate the effect that understated oil and gas resource 
    inventories have on domestic energy investments; and
        (5) identify and explain how legislative, regulatory, and 
    administrative programs or processes restrict or impede the 
    development of identified resources and the extent that they affect 
    domestic supply, such as moratoria, lease terms and conditions, 
    operational stipulations and requirements, approval delays by the 
    Federal Government and coastal States, and local zoning 
    restrictions for onshore processing facilities and pipeline 
    landings.
    (b) Reports.--The Secretary shall submit a report to Congress on 
the inventory of estimates and the analysis of restrictions or 
impediments, together with any recommendations, within 6 months of the 
date of enactment of the section. The report shall be publicly 
available and updated at least every 5 years.

                  Subtitle F--Access to Federal Lands

SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--
        (1) In general.--The Secretary of the Interior, in consultation 
    with the Secretary of Agriculture with respect to National Forest 
    System lands under the jurisdiction of the Department of 
    Agriculture, shall perform an internal review of current Federal 
    onshore oil and gas leasing and permitting practices.
        (2) Inclusions.--The review shall include the process for--
            (A) accepting or rejecting offers to lease;
            (B) administrative appeals of decisions or orders of 
        officers or employees of the Bureau of Land Management with 
        respect to a Federal oil or gas lease;
            (C) considering surface use plans of operation, including 
        the timeframes in which the plans are considered, and any 
        recommendations for improving and expediting the process; and
            (D) identifying stipulations to address site-specific 
        concerns and conditions, including those stipulations relating 
        to the environment and resource use conflicts.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of the Interior and the Secretary of 
Agriculture shall transmit a report to Congress that describes--
        (1) actions taken under section 3 of Executive Order No. 13212 
    (42 U.S.C. 13201 note); and
        (2) actions taken or any plans to improve the Federal onshore 
    oil and gas leasing program.

SEC. 362. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--
        (1) Secretary of the interior.--To ensure timely action on oil 
    and gas leases and applications for permits to drill on land 
    otherwise available for leasing, the Secretary of the Interior 
    (referred to in this section as the ``Secretary'') shall--
            (A) ensure expeditious compliance with section 102(2)(C) of 
        the National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)) and any other applicable environmental and cultural 
        resources laws;
            (B) improve consultation and coordination with the States 
        and the public; and
            (C) improve the collection, storage, and retrieval of 
        information relating to the oil and gas leasing activities.
        (2) Secretary of agriculture.--To ensure timely action on oil 
    and gas lease applications for permits to drill on land otherwise 
    available for leasing, the Secretary of Agriculture shall--
            (A) ensure expeditious compliance with all applicable 
        environmental and cultural resources laws; and
            (B) improve the collection, storage, and retrieval of 
        information relating to the oil and gas leasing activities.
    (b) Best Management Practices.--
        (1) In general.--Not later than 18 months after the date of 
    enactment of this Act, the Secretary shall develop and implement 
    best management practices to--
            (A) improve the administration of the onshore oil and gas 
        leasing program under the Mineral Leasing Act (30 U.S.C. 181 et 
        seq.); and
            (B) ensure timely action on oil and gas leases and 
        applications for permits to drill on land otherwise available 
        for leasing.
        (2) Considerations.--In developing the best management 
    practices under paragraph (1), the Secretary shall consider any 
    recommendations from the review under section 361.
        (3) Regulations.--Not later than 180 days after the development 
    of the best management practices under paragraph (1), the Secretary 
    shall publish, for public comment, proposed regulations that set 
    forth specific timeframes for processing leases and applications in 
    accordance with the best management practices, including deadlines 
    for--
            (A) approving or disapproving--
                (i) resource management plans and related documents;
                (ii) lease applications;
                (iii) applications for permits to drill; and
                (iv) surface use plans; and
            (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary and the Secretary of 
Agriculture shall improve inspection and enforcement of oil and gas 
activities, including enforcement of terms and conditions in permits to 
drill on land under the jurisdiction of the Secretary and the Secretary 
of Agriculture, respectively.
    (d) Authorization of Appropriations.--In addition to amounts made 
available to carry out activities relating to oil and gas leasing on 
public land administered by the Secretary and National Forest System 
land administered by the Secretary of Agriculture, there are authorized 
to be appropriated for each of fiscal years 2006 through 2010--
        (1) to the Secretary, acting through the Director of the Bureau 
    of Land Management--
            (A) $40,000,000 to carry out subsections (a)(1) and (b); 
        and
            (B) $20,000,000 to carry out subsection (c);
        (2) to the Secretary, acting through the Director of the United 
    States Fish and Wildlife Service, $5,000,000 to carry out 
    subsection (a)(1); and
        (3) to the Secretary of Agriculture, acting through the Chief 
    of the Forest Service, $5,000,000 to carry out subsections (a)(2) 
    and (c).

SEC. 363. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior and the Secretary 
of Agriculture shall enter into a memorandum of understanding regarding 
oil and gas leasing on--
        (1) public land under the jurisdiction of the Secretary of the 
    Interior; and
        (2) National Forest System land under the jurisdiction of the 
    Secretary of Agriculture.
    (b) Contents.--The memorandum of understanding shall include 
provisions that--
        (1) establish administrative procedures and lines of authority 
    that ensure timely processing of--
            (A) oil and gas lease applications;
            (B) surface use plans of operation, including steps for 
        processing surface use plans; and
            (C) applications for permits to drill consistent with 
        applicable timelines;
        (2) eliminate duplication of effort by providing for 
    coordination of planning and environmental compliance efforts;
        (3) ensure that lease stipulations are--
            (A) applied consistently;
            (B) coordinated between agencies; and
            (C) only as restrictive as necessary to protect the 
        resource for which the stipulations are applied;
        (4) establish a joint data retrieval system that is capable 
    of--
            (A) tracking applications and formal requests made in 
        accordance with procedures of the Federal onshore oil and gas 
        leasing program; and
            (B) providing information regarding the status of the 
        applications and requests within the Department of the Interior 
        and the Department of Agriculture; and
        (5) establish a joint geographic information system mapping 
    system for use in--
            (A) tracking surface resource values to aid in resource 
        management; and
            (B) processing surface use plans of operation and 
        applications for permits to drill.

SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
              LAND.

    (a) Assessment.--Section 604 of the Energy Act of 2000 (42 U.S.C. 
6217) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)--
                (i) by striking ``reserve''; and
                (ii) by striking ``and'' after the semicolon; and
            (B) by striking paragraph (2) and inserting the following:
        ``(2) the extent and nature of any restrictions or impediments 
    to the development of the resources, including--
            ``(A) impediments to the timely granting of leases;
            ``(B) post-lease restrictions, impediments, or delays on 
        development for conditions of approval, applications for 
        permits to drill, or processing of environmental permits; and
            ``(C) permits or restrictions associated with transporting 
        the resources for entry into commerce; and
        ``(3) the quantity of resources not produced or introduced into 
    commerce because of the restrictions.'';
        (2) in subsection (b)--
            (A) by striking ``reserve'' and inserting ``resource''; and
            (B) by striking ``publically'' and inserting ``publicly''; 
        and
        (3) by striking subsection (d) and inserting the following:
    ``(d) Assessments.--Using the inventory, the Secretary of Energy 
shall make periodic assessments of economically recoverable resources 
accounting for a range of parameters such as current costs, commodity 
prices, technology, and regulations.''.
    (b) Methodology.--The Secretary of the Interior shall use the same 
assessment methodology across all geological provinces, areas, and 
regions in preparing and issuing national geological assessments to 
ensure accurate comparisons of geological resources.

SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (referred to in 
this section as the ``Secretary'') shall establish a Federal Permit 
Streamlining Pilot Project (referred to in this section as the ``Pilot 
Project'').
    (b) Memorandum of Understanding.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Secretary shall enter into a memorandum 
    of understanding for purposes of this section with--
            (A) the Secretary of Agriculture;
            (B) the Administrator of the Environmental Protection 
        Agency; and
            (C) the Chief of Engineers.
        (2) State participation.--The Secretary may request that the 
    Governors of Wyoming, Montana, Colorado, Utah, and New Mexico be 
    signatories to the memorandum of understanding.
    (c) Designation of Qualified Staff.--
        (1) In general.--Not later than 30 days after the date of the 
    signing of the memorandum of understanding under subsection (b), 
    all Federal signatory parties shall, if appropriate, assign to each 
    of the field offices identified in subsection (d) an employee who 
    has expertise in the regulatory issues relating to the office in 
    which the employee is employed, including, as applicable, 
    particular expertise in--
            (A) the consultations and the preparation of biological 
        opinions under section 7 of the Endangered Species Act of 1973 
        (16 U.S.C. 1536);
            (B) permits under section 404 of Federal Water Pollution 
        Control Act (33 U.S.C. 1344);
            (C) regulatory matters under the Clean Air Act (42 U.S.C. 
        7401 et seq.);
            (D) planning under the National Forest Management Act of 
        1976 (16 U.S.C. 472a et seq.); and
            (E) the preparation of analyses under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
        (2) Duties.--Each employee assigned under paragraph (1) shall--
            (A) not later than 90 days after the date of assignment, 
        report to the Bureau of Land Management Field Managers in the 
        office to which the employee is assigned;
            (B) be responsible for all issues relating to the 
        jurisdiction of the home office or agency of the employee; and
            (C) participate as part of the team of personnel working on 
        proposed energy projects, planning, and environmental analyses.
    (d) Field Offices.--The following Bureau of Land Management Field 
Offices shall serve as the Pilot Project offices:
        (1) Rawlins, Wyoming.
        (2) Buffalo, Wyoming.
        (3) Miles City, Montana.
        (4) Farmington, New Mexico.
        (5) Carlsbad, New Mexico.
        (6) Grand Junction/Glenwood Springs, Colorado.
        (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that--
        (1) outlines the results of the Pilot Project to date; and
        (2) makes a recommendation to the President regarding whether 
    the Pilot Project should be implemented throughout the United 
    States.
    (f) Additional Personnel.--The Secretary shall assign to each field 
office identified in subsection (d) any additional personnel that are 
necessary to ensure the effective implementation of--
        (1) the Pilot Project; and
        (2) other programs administered by the field offices, including 
    inspection and enforcement relating to energy development on 
    Federal land, in accordance with the multiple use mandate of the 
    Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et 
    seq.).
    (g) Permit Processing Improvement Fund.--Section 35 of the Mineral 
Leasing Act (30 U.S.C. 191) is amended by adding at the end the 
following:
    ``(c)(1) Notwithstanding the first sentence of subsection (a), any 
rentals received from leases in any State (other than the State of 
Alaska) on or after the date of enactment of this subsection shall be 
deposited in the Treasury, to be allocated in accordance with paragraph 
(2).
    ``(2) Of the amounts deposited in the Treasury under paragraph 
(1)--
        ``(A) 50 percent shall be paid by the Secretary of the Treasury 
    to the State within the boundaries of which the leased land is 
    located or the deposits were derived; and
        ``(B) 50 percent shall be deposited in a special fund in the 
    Treasury, to be known as the `BLM Permit Processing Improvement 
    Fund' (referred to in this subsection as the `Fund').
    ``(3) For each of fiscal years 2006 through 2015, the Fund shall be 
available to the Secretary of the Interior for expenditure, without 
further appropriation and without fiscal year limitation, for the 
coordination and processing of oil and gas use authorizations on 
onshore Federal land under the jurisdiction of the Pilot Project 
offices identified in section 365(d) of the Energy Policy Act of 
2005.''.
    (h) Transfer of Funds.--For the purposes of coordination and 
processing of oil and gas use authorizations on Federal land under the 
administration of the Pilot Project offices identified in subsection 
(d), the Secretary may authorize the expenditure or transfer of such 
funds as are necessary to--
        (1) the United States Fish and Wildlife Service;
        (2) the Bureau of Indian Affairs;
        (3) the Forest Service;
        (4) the Environmental Protection Agency;
        (5) the Corps of Engineers; and
        (6) the States of Wyoming, Montana, Colorado, Utah, and New 
    Mexico.
    (i) Fees.--During the period in which the Pilot Project is 
authorized, the Secretary shall not implement a rulemaking that would 
enable an increase in fees to recover additional costs related to 
processing drilling-related permit applications and use authorizations.
    (j) Savings Provision.--Nothing in this section affects--
        (1) the operation of any Federal or State law; or
        (2) any delegation of authority made by the head of a Federal 
    agency whose employees are participating in the Pilot Project.

SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by 
adding at the end the following:
    ``(p) Deadlines for Consideration of Applications for Permits.--
        ``(1) In general.--Not later than 10 days after the date on 
    which the Secretary receives an application for any permit to 
    drill, the Secretary shall--
            ``(A) notify the applicant that the application is 
        complete; or
            ``(B) notify the applicant that information is missing and 
        specify any information that is required to be submitted for 
        the application to be complete.
        ``(2) Issuance or deferral.--Not later than 30 days after the 
    applicant for a permit has submitted a complete application, the 
    Secretary shall--
            ``(A) issue the permit, if the requirements under the 
        National Environmental Policy Act of 1969 and other applicable 
        law have been completed within such timeframe; or
            ``(B) defer the decision on the permit and provide to the 
        applicant a notice--
                ``(i) that specifies any steps that the applicant could 
            take for the permit to be issued; and
                ``(ii) a list of actions that need to be taken by the 
            agency to complete compliance with applicable law together 
            with timelines and deadlines for completing such actions.
        ``(3) Requirements for deferred applications.--
            ``(A) In general.--If the Secretary provides notice under 
        paragraph (2)(B), the applicant shall have a period of 2 years 
        from the date of receipt of the notice in which to complete all 
        requirements specified by the Secretary, including providing 
        information needed for compliance with the National 
        Environmental Policy Act of 1969.
            ``(B) Issuance of decision on permit.--If the applicant 
        completes the requirements within the period specified in 
        subparagraph (A), the Secretary shall issue a decision on the 
        permit not later than 10 days after the date of completion of 
        the requirements described in subparagraph (A), unless 
        compliance with the National Environmental Policy Act of 1969 
        and other applicable law has not been completed within such 
        timeframe.
            ``(C) Denial of permit.--If the applicant does not complete 
        the requirements within the period specified in subparagraph 
        (A) or if the applicant does not comply with applicable law, 
        the Secretary shall deny the permit.''.

SEC. 367. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR RIGHTS-OF-WAY 
              ACROSS PUBLIC LANDS AND NATIONAL FORESTS.

    (a) Update of Fee Schedule.--Not later than 1 year after the date 
of enactment of this section--
        (1) the Secretary of the Interior shall update section 2806.20 
    of title 43, Code of Federal Regulations, as in effect on the date 
    of enactment of this section, to revise the per acre rental fee 
    zone value schedule by State, county, and type of linear right-of-
    way use to reflect current values of land in each zone; and
        (2) the Secretary of Agriculture shall make the same revision 
    for linear rights-of-way granted, issued, or renewed under title V 
    of the Federal Lands Policy and Management Act of 1976 (43 U.S.C. 
    1761 et seq.) on National Forest System land.
    (b) Fair Market Value Rental Determination for Linear Rights-of-
way.--The fair market value rent of a linear right-of-way across public 
lands or National Forest System lands issued under section 504 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764) or 
section 28 of the Mineral Leasing Act (30 U.S.C. 185) shall be 
determined in accordance with subpart 2806 of title 43, Code of Federal 
Regulations, as in effect on the date of enactment of this section 
(including the annual or periodic updates specified in the regulations) 
and as updated in accordance with subsection (a).

SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.

    (a) Western States.--Not later than 2 years after the date of 
enactment of this Act, the Secretary of Agriculture, the Secretary of 
Commerce, the Secretary of Defense, the Secretary of Energy, and the 
Secretary of the Interior (in this section referred to collectively as 
``the Secretaries''), in consultation with the Federal Energy 
Regulatory Commission, States, tribal or local units of governments as 
appropriate, affected utility industries, and other interested persons, 
shall consult with each other and shall--
        (1) designate, under their respective authorities, corridors 
    for oil, gas, and hydrogen pipelines and electricity transmission 
    and distribution facilities on Federal land in the eleven 
    contiguous Western States (as defined in section 103(o) of the 
    Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702(o));
        (2) perform any environmental reviews that may be required to 
    complete the designation of such corridors; and
        (3) incorporate the designated corridors into the relevant 
    agency land use and resource management plans or equivalent plans.
    (b) Other States.--Not later than 4 years after the date of 
enactment of this Act, the Secretaries, in consultation with the 
Federal Energy Regulatory Commission, affected utility industries, and 
other interested persons, shall jointly--
        (1) identify corridors for oil, gas, and hydrogen pipelines and 
    electricity transmission and distribution facilities on Federal 
    land in States other than those described in subsection (a); and
        (2) schedule prompt action to identify, designate, and 
    incorporate the corridors into the applicable land use plans.
    (c) Ongoing Responsibilities.--The Secretaries, in consultation 
with the Federal Energy Regulatory Commission, affected utility 
industries, and other interested parties, shall establish procedures 
under their respective authorities that--
        (1) ensure that additional corridors for oil, gas, and hydrogen 
    pipelines and electricity transmission and distribution facilities 
    on Federal land are promptly identified and designated as 
    necessary; and
        (2) expedite applications to construct or modify oil, gas, and 
    hydrogen pipelines and electricity transmission and distribution 
    facilities within such corridors, taking into account prior 
    analyses and environmental reviews undertaken during the 
    designation of such corridors.
    (d) Considerations.--In carrying out this section, the Secretaries 
shall take into account the need for upgraded and new electricity 
transmission and distribution facilities to--
        (1) improve reliability;
        (2) relieve congestion; and
        (3) enhance the capability of the national grid to deliver 
    electricity.
    (e) Specifications of Corridor.--A corridor designated under this 
section shall, at a minimum, specify the centerline, width, and 
compatible uses of the corridor.

SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL 
              FUELS.

    (a) Short Title.--This section may be cited as the ``Oil Shale, Tar 
Sands, and Other Strategic Unconventional Fuels Act of 2005''.
    (b) Declaration of Policy.--Congress declares that it is the policy 
of the United States that--
        (1) United States oil shale, tar sands, and other 
    unconventional fuels are strategically important domestic resources 
    that should be developed to reduce the growing dependence of the 
    United States on politically and economically unstable sources of 
    foreign oil imports;
        (2) the development of oil shale, tar sands, and other 
    strategic unconventional fuels, for research and commercial 
    development, should be conducted in an environmentally sound 
    manner, using practices that minimize impacts; and
        (3) development of those strategic unconventional fuels should 
    occur, with an emphasis on sustainability, to benefit the United 
    States while taking into account affected States and communities.
    (c) Leasing Program for Research and Development of Oil Shale and 
Tar Sands.--In accordance with section 21 of the Mineral Leasing Act 
(30 U.S.C. 241) and any other applicable law, except as provided in 
this section, not later than 180 days after the date of enactment of 
this Act, from land otherwise available for leasing, the Secretary of 
the Interior (referred to in this section as the ``Secretary'') shall 
make available for leasing such land as the Secretary considers to be 
necessary to conduct research and development activities with respect 
to technologies for the recovery of liquid fuels from oil shale and tar 
sands resources on public lands. Prospective public lands within each 
of the States of Colorado, Utah, and Wyoming shall be made available 
for such research and development leasing.
    (d) Programmatic Environmental Impact Statement and Commercial 
Leasing Program for Oil Shale and Tar Sands.--
        (1) Programmatic environmental impact statement.--Not later 
    than 18 months after the date of enactment of this Act, in 
    accordance with section 102(2)(C) of the National Environmental 
    Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the Secretary shall 
    complete a programmatic environmental impact statement for a 
    commercial leasing program for oil shale and tar sands resources on 
    public lands, with an emphasis on the most geologically prospective 
    lands within each of the States of Colorado, Utah, and Wyoming.
        (2) Final regulation.--Not later than 6 months after the 
    completion of the programmatic environmental impact statement under 
    this subsection, the Secretary shall publish a final regulation 
    establishing such program.
    (e) Commencement of Commercial Leasing of Oil Shale and Tar 
Sands.--Not later than 180 days after publication of the final 
regulation required by subsection (d), the Secretary shall consult with 
the Governors of States with significant oil shale and tar sands 
resources on public lands, representatives of local governments in such 
States, interested Indian tribes, and other interested persons, to 
determine the level of support and interest in the States in the 
development of tar sands and oil shale resources. If the Secretary 
finds sufficient support and interest exists in a State, the Secretary 
may conduct a lease sale in that State under the commercial leasing 
program regulations. Evidence of interest in a lease sale under this 
subsection shall include, but not be limited to, appropriate areas 
nominated for leasing by potential lessees and other interested 
parties.
    (f) Diligent Development Requirements.--The Secretary shall, by 
regulation, designate work requirements and milestones to ensure the 
diligent development of the lease.
    (g) Initial Report by the Secretary of the Interior.--Within 90 
days after the date of enactment of this Act, the Secretary of the 
Interior shall report to the Committee on Resources of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate on--
        (1) the interim actions necessary to--
            (A) develop the program, complete the programmatic 
        environmental impact statement, and promulgate the final 
        regulation as required by subsection (d); and
            (B) conduct the first lease sales under the program as 
        required by subsection (e); and
        (2) a schedule to complete such actions within the time limits 
    mandated by this section.
    (h) Task Force.--
        (1) Establishment.--The Secretary of Energy, in cooperation 
    with the Secretary of the Interior and the Secretary of Defense, 
    shall establish a task force to develop a program to coordinate and 
    accelerate the commercial development of strategic unconventional 
    fuels, including but not limited to oil shale and tar sands 
    resources within the United States, in an integrated manner.
        (2) Composition.--The Task Force shall be composed of--
            (A) the Secretary of Energy (or the designee of the 
        Secretary);
            (B) the Secretary of the Interior (or the designee of the 
        Secretary of the Interior);
            (C) the Secretary of Defense (or the designee of the 
        Secretary of Defense);
            (D) the Governors of affected States; and
            (E) representatives of local governments in affected areas.
        (3) Recommendations.--The Task Force shall make such 
    recommendations regarding promoting the development of the 
    strategic unconventional fuels resources within the United States 
    as it may deem appropriate.
        (4) Partnerships.--The Task Force shall make recommendations 
    with respect to initiating a partnership with the Province of 
    Alberta, Canada, for purposes of sharing information relating to 
    the development and production of oil from tar sands, and similar 
    partnerships with other nations that contain significant oil shale 
    resources.
        (5) Reports.--
            (A) Initial report.--Not later than 180 days after the date 
        of enactment of this Act, the Task Force shall submit to the 
        President and Congress a report that describes the analysis and 
        recommendations of the Task Force.
            (B) Subsequent reports.--The Secretary shall provide an 
        annual report describing the progress in developing the 
        strategic unconventional fuels resources within the United 
        States for each of the 5 years following submission of the 
        report provided for in subparagraph (A).
    (i) Office of Petroleum Reserves.--
        (1) In general.--The Office of Petroleum Reserves of the 
    Department of Energy shall--
            (A) coordinate the creation and implementation of a 
        commercial strategic fuel development program for the United 
        States;
            (B) evaluate the strategic importance of unconventional 
        sources of strategic fuels to the security of the United 
        States;
            (C) promote and coordinate Federal Government actions that 
        facilitate the development of strategic fuels in order to 
        effectively address the energy supply needs of the United 
        States;
            (D) identify, assess, and recommend appropriate actions of 
        the Federal Government required to assist in the development 
        and manufacturing of strategic fuels; and
            (E) coordinate and facilitate appropriate relationships 
        between private industry and the Federal Government to promote 
        sufficient and timely private investment to commercialize 
        strategic fuels for domestic and military use.
        (2) Consultation and coordination.--The Office of Petroleum 
    Reserves shall work closely with the Task Force and coordinate its 
    staff support.
        (3) Annual reports.--Not later than 180 days after the date of 
    enactment of this Act and annually thereafter, the Secretary shall 
    submit to Congress a report that describes the activities of the 
    Office of Petroleum Reserves carried out under this subsection.
    (j) Mineral Leasing Act Amendments.--
        (1) Section 17.--Section 17(b)(2) of the Mineral Leasing Act 
    (30 U.S.C. 226(b)(2)), as amended by section 350, is further 
    amended--
            (A) in subparagraph (A) (as designated by the amendment 
        made by subsection (a)(1) of that section) by designating the 
        first, second, and third sentences as clauses (i), (ii), and 
        (iii), respectively;
            (B) by moving clause (ii), as so designated, so as to begin 
        immediately after and below clause (i);
            (C) by moving clause (iii), as so designated, so as to 
        begin immediately after and below clause (ii);
            (D) in clause (i) of subparagraph (A) (as designated by 
        subparagraph (A) of this paragraph) by striking ``five thousand 
        one hundred and twenty'' and inserting ``5,760''; and
            (E) by adding at the end the following:
        ``(iv) No lease issued under this paragraph shall be included 
    in any chargeability limitation associated with oil and gas 
    leases.''.
        (2) Section 21.--Section 21(a) of the Mineral Leasing Act (30 
    U.S.C. 241(a)) is amended--
            (A) by striking ``(a) That the Secretary'' and inserting 
        the following:
    ``(a)(1) The Secretary'';
            (B) by striking ``; that no lease'' and inserting a period, 
        followed by the following:
        ``(2) No lease'';
            (C) by striking ``Leases may be for'' and inserting the 
        following:
        ``(3) Leases may be for'';
            (D) by striking ``For the privilege'' and inserting the 
        following:
        ``(4) For the privilege'';
            (E) in paragraph (2) (as designated by subparagraph (B) of 
        this paragraph) by striking ``five thousand one hundred and 
        twenty'' and inserting ``5,760'';
            (F) in paragraph (4) (as designated by subparagraph (D) of 
        this paragraph) by striking ``rate of 50 cents per acre'' and 
        inserting ``rate of $2.00 per acre'';
            (G)(i) by striking ``: Provided further, That not more than 
        one lease shall be granted under this section to any'' and 
        inserting ``: Provided further, That no''; and
            (ii) by striking ``except that with respect to leases for'' 
        and inserting ``shall acquire or hold more than 50,000 acres of 
        oil shale leases in any one State. For''; and
            (H) by adding at the end the following:
        ``(5) No lease issued under this section shall be included in 
    any chargeability limitation associated with oil and gas leases.''.
    (k) Interagency Coordination and Expeditious Review of Permitting 
Process.--
        (1) Department of the interior as lead agency.--Upon written 
    request of a prospective applicant for Federal authorization to 
    develop a proposed oil shale or tar sands project, the Department 
    of the Interior shall act as the lead Federal agency for the 
    purposes of coordinating all applicable Federal authorizations and 
    environmental reviews. To the maximum extent practicable under 
    applicable Federal law, the Secretary shall coordinate this Federal 
    authorization and review process with any Indian tribes and State 
    and local agencies responsible for conducting any separate 
    permitting and environmental reviews.
        (2) Implementing regulations.--Not later than 6 months after 
    the date of enactment of this Act, the Secretary shall issue any 
    regulations necessary to implement this subsection.
    (l) Cost-shared Demonstration Technologies.--
        (1) Identification.--The Secretary of Energy shall identify 
    technologies for the development of oil shale and tar sands that--
            (A) are ready for demonstration at a commercially-
        representative scale; and
            (B) have a high probability of leading to commercial 
        production.
        (2) Assistance.--For each technology identified under paragraph 
    (1), the Secretary of Energy may provide--
            (A) technical assistance;
            (B) assistance in meeting environmental and regulatory 
        requirements; and
            (C) cost-sharing assistance.
    (m) National Oil Shale and Tar Sands Assessment.--
        (1) Assessment.--
            (A) In general.--The Secretary shall carry out a national 
        assessment of oil shale and tar sands resources for the 
        purposes of evaluating and mapping oil shale and tar sands 
        deposits, in the geographic areas described in subparagraph 
        (B). In conducting such an assessment, the Secretary shall make 
        use of the extensive geological assessment work for oil shale 
        and tar sands already conducted by the United States Geological 
        Survey.
            (B) Geographic areas.--The geographic areas referred to in 
        subparagraph (A), listed in the order in which the Secretary 
        shall assign priority, are--
                (i) the Green River Region of the States of Colorado, 
            Utah, and Wyoming;
                (ii) the Devonian oil shales and other hydrocarbon-
            bearing rocks having the nomenclature of ``shale'' located 
            east of the Mississippi River; and
                (iii) any remaining area in the central and western 
            United States (including the State of Alaska) that contains 
            oil shale and tar sands, as determined by the Secretary.
        (2) Use of state surveys and universities.--In carrying out the 
    assessment under paragraph (1), the Secretary may request 
    assistance from any State-administered geological survey or 
    university.
    (n) Land Exchanges.--
        (1) In general.--To facilitate the recovery of oil shale and 
    tar sands, especially in areas where Federal, State, and private 
    lands are intermingled, the Secretary shall consider the use of 
    land exchanges where appropriate and feasible to consolidate land 
    ownership and mineral interests into manageable areas.
        (2) Identification and priority of public lands.--The Secretary 
    shall identify public lands containing deposits of oil shale or tar 
    sands within the Green River, Piceance Creek, Uintah, and Washakie 
    geologic basins, and shall give priority to implementing land 
    exchanges within those basins. The Secretary shall consider the 
    geology of the respective basin in determining the optimum size of 
    the lands to be consolidated.
        (3) Compliance with section 206 of flpma.--A land exchange 
    undertaken in furtherance of this subsection shall be implemented 
    in accordance with section 206 of the Federal Land Policy and 
    Management Act of 1976 (43 U.S.C. 1716).
    (o) Royalty Rates for Leases.--The Secretary shall establish 
royalties, fees, rentals, bonus, or other payments for leases under 
this section that shall--
        (1) encourage development of the oil shale and tar sands 
    resource; and
        (2) ensure a fair return to the United States.
    (p) Heavy Oil Technical and Economic Assessment.--The Secretary of 
Energy shall update the 1987 technical and economic assessment of 
domestic heavy oil resources that was prepared by the Interstate Oil 
and Gas Compact Commission. Such an update should include all of North 
America and cover all unconventional oil, including heavy oil, tar 
sands (oil sands), and oil shale.
    (q) Procurement of Unconventional Fuels by the Department of 
Defense.--
        (1) In general.--Chapter 141 of title 10, United States Code, 
    is amended by inserting after section 2398 the following:

``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar 
            sands

    ``(a) Use of Fuel to Meet Department of Defense Needs.--The 
Secretary of Defense shall develop a strategy to use fuel produced, in 
whole or in part, from coal, oil shale, and tar sands (referred to in 
this section as a `covered fuel') that are extracted by either mining 
or in-situ methods and refined or otherwise processed in the United 
States in order to assist in meeting the fuel requirements of the 
Department of Defense when the Secretary determines that it is in the 
national interest.
    ``(b) Authority to Procure.--The Secretary of Defense may enter 
into 1 or more contracts or other agreements (that meet the 
requirements of this section) to procure a covered fuel to meet 1 or 
more fuel requirements of the Department of Defense.
    ``(c) Clean Fuel Requirements.--A covered fuel may be procured 
under subsection (b) only if the covered fuel meets such standards for 
clean fuel produced from domestic sources as the Secretary of Defense 
shall establish for purposes of this section in consultation with the 
Department of Energy.
    ``(d) Multiyear Contract Authority.--Subject to applicable 
provisions of law, any contract or other agreement for the procurement 
of covered fuel under subsection (b) may be for 1 or more years at the 
election of the Secretary of Defense.
    ``(e) Fuel Source Analysis.--In order to facilitate the procurement 
by the Department of Defense of covered fuel under subsection (b), the 
Secretary of Defense may carry out a comprehensive assessment of 
current and potential locations in the United States for the supply of 
covered fuel to the Department.''.
        (2) Clerical amendment.--The table of sections for chapter 141 
    of title 10, United States Code, is amended by inserting after the 
    item relating to section 2398 the following:

``2398a. Procurement of fuel derived from coal, oil shale, and tar 
          sands.''.

    (r) State Water Rights.--Nothing in this section preempts or 
affects any State water law or interstate compact relating to water.
    (s) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 370. FINGER LAKES WITHDRAWAL.

    All Federal land within the boundary of Finger Lakes National 
Forest in the State of New York is withdrawn from--
        (1) all forms of entry, appropriation, or disposal under the 
    public land laws; and
        (2) disposition under all laws relating to oil and gas leasing.

SEC. 371. REINSTATEMENT OF LEASES.

    (a) Leases Terminated for Certain Failure to Pay Rental.--
Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act (30 
U.S.C. 188(d)(2)(B)) as in effect before the effective date of this 
section, and notwithstanding the amendment made by subsection (b) of 
this section, the Secretary of the Interior may reinstate any oil and 
gas lease issued under that Act that was terminated for failure of a 
lessee to pay the full amount of rental on or before the anniversary 
date of the lease, during the period beginning on September 1, 2001, 
and ending on June 30, 2004, if--
        (1) not later than 120 days after the date of enactment of this 
    Act, the lessee--
            (A) files a petition for reinstatement of the lease;
            (B) complies with the conditions of section 31(e) of the 
        Mineral Leasing Act (30 U.S.C. 188(e)); and
            (C) certifies that the lessee did not receive a notice of 
        termination by the date that was 13 months before the date of 
        termination; and
        (2) the land is available for leasing.
    (b) Deadline for Petitions, Generally.--Section 31(d)(2) of the 
Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by striking 
subparagraphs (A) and (B) and inserting the following:
            ``(A) with respect to any lease that terminated under 
        subsection (b) on or before the date of the enactment of the 
        Energy Policy Act of 2005, a petition for reinstatement 
        (together with the required back rental and royalty accruing 
        after the date of termination) is filed on or before the 
        earlier of--
                ``(i) 60 days after the lessee receives from the 
            Secretary notice of termination, whether by return of check 
            or by any other form of actual notice; or
                ``(ii) 15 months after the termination of the lease; or
            ``(B) with respect to any lease that terminates under 
        subsection (b) after the date of the enactment of the Energy 
        Policy Act of 2005, a petition for reinstatement (together with 
        the required back rental and royalty accruing after the date of 
        termination) is filed on or before the earlier of--
                ``(i) 60 days after receipt of the notice of 
            termination sent by the Secretary by certified mail to all 
            lessees of record; or
                ``(ii) 24 months after the termination of the lease.''.

SEC. 372. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.

    (a) Memorandum of Understanding.--
        (1) In general.--Not later than 6 months after the date of 
    enactment of this Act, the Secretary of Energy, in consultation 
    with the Secretary of the Interior, the Secretary of Agriculture, 
    and the Secretary of Defense with respect to lands under their 
    respective jurisdictions, shall enter into a memorandum of 
    understanding to coordinate all applicable Federal authorizations 
    and environmental reviews relating to a proposed or existing 
    utility facility. To the maximum extent practicable under 
    applicable law, the Secretary of Energy shall, to ensure timely 
    review and permit decisions, coordinate such authorizations and 
    reviews with any Indian tribes, multi-State entities, and State 
    agencies that are responsible for conducting any separate 
    permitting and environmental reviews of the affected utility 
    facility.
        (2) Contents.--The memorandum of understanding shall include 
    provisions that--
            (A) establish--
                (i) a unified right-of-way application form; and
                (ii) an administrative procedure for processing right-
            of-way applications, including lines of authority, steps in 
            application processing, and timeframes for application 
            processing;
            (B) provide for coordination of planning relating to the 
        granting of the rights-of-way;
            (C) provide for an agreement among the affected Federal 
        agencies to prepare a single environmental review document to 
        be used as the basis for all Federal authorization decisions; 
        and
            (D) provide for coordination of use of right-of-way 
        stipulations to achieve consistency.
    (b) Natural Gas Pipelines.--
        (1) In general.--With respect to permitting activities for 
    interstate natural gas pipelines, the May 2002 document entitled 
    ``Interagency Agreement On Early Coordination Of Required 
    Environmental And Historic Preservation Reviews Conducted In 
    Conjunction With The Issuance Of Authorizations To Construct And 
    Operate Interstate Natural Gas Pipelines Certificated By The 
    Federal Energy Regulatory Commission'' shall constitute compliance 
    with subsection (a).
        (2) Report.--
            (A) In general.--Not later than 1 year after the date of 
        enactment of this Act, and every 2 years thereafter, agencies 
        that are signatories to the document referred to in paragraph 
        (1) shall transmit to Congress a report on how the agencies 
        under the jurisdiction of the Secretaries are incorporating and 
        implementing the provisions of the document referred to in 
        paragraph (1).
            (B) Contents.--The report shall address--
                (i) efforts to implement the provisions of the document 
            referred to in paragraph (1);
                (ii) whether the efforts have had a streamlining 
            effect;
                (iii) further improvements to the permitting process of 
            the agency; and
                (iv) recommendations for inclusion of State and tribal 
            governments in a coordinated permitting process.
    (c) Definition of Utility Facility.--In this section, the term 
``utility facility'' means any privately, publicly, or cooperatively 
owned line, facility, or system--
        (1) for the transportation of--
            (A) oil, natural gas, synthetic liquid fuel, or gaseous 
        fuel;
            (B) any refined product produced from oil, natural gas, 
        synthetic liquid fuel, or gaseous fuel; or
            (C) products in support of the production of material 
        referred to in subparagraph (A) or (B);
        (2) for storage and terminal facilities in connection with the 
    production of material referred to in paragraph (1); or
        (3) for the generation, transmission, and distribution of 
    electric energy.

SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER 
              PADRE ISLAND NATIONAL SEASHORE.

    (a) Findings.--Congress finds the following:
        (1) Pursuant to Public Law 87-712 (16 U.S.C. 459d et seq.; 
    popularly known as the ``Federal Enabling Act'') and various deeds 
    and actions under that Act, the United States is the owner of only 
    the surface estate of certain lands constituting the Padre Island 
    National Seashore.
        (2) Ownership of the oil, gas, and other minerals in the 
    subsurface estate of the lands constituting the Padre Island 
    National Seashore was never acquired by the United States, and 
    ownership of those interests is held by the State of Texas and 
    private parties.
        (3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
            (A) expressly contemplated that the United States would 
        recognize the ownership and future development of the oil, gas, 
        and other minerals in the subsurface estate of the lands 
        constituting the Padre Island National Seashore by the owners 
        and their mineral lessees; and
            (B) recognized that approval of the State of Texas was 
        required to create Padre Island National Seashore.
        (4) Approval was given for the creation of Padre Island 
    National Seashore by the State of Texas through Tex. Rev. Civ. 
    Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly recognized 
    that development of the oil, gas, and other minerals in the 
    subsurface of the lands constituting Padre Island National Seashore 
    would be conducted with full rights of ingress and egress under the 
    laws of the State of Texas.
    (b) Sense of Congress.--It is the sense of Congress that with 
regard to Federal law, any regulation of the development of oil, gas, 
or other minerals in the subsurface of the lands constituting Padre 
Island National Seashore should be made as if those lands retained the 
status that the lands had on September 27, 1962.

SEC. 374. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

    Section 102 of Public Law 102-562 (106 Stat. 4234) is amended by 
striking subsection (b) and inserting the following:
    ``(b) Reservation of Oil and Gas Rights and Conveyance of Remaining 
Mineral Rights.--Subject to the limitations set forth in subsection 
(c), the United States hereby excepts and reserves from the provisions 
of subsection (a), all rights to oil and gas underlying such lands, 
along with the right to explore for, and produce the oil and gas under 
applicable law and such regulations as the Secretary of the Interior 
may prescribe. Not later than 180 days after the date of enactment of 
the Energy Policy Act of 2005, the Secretary of the Interior shall 
convey the remaining mineral rights to the parties who as of the date 
of enactment of the Energy Policy Act of 2005 would be recognized as 
holders of a right, title, or interest to any portion of such minerals 
under the laws of the State of Louisiana, but for the interest of the 
United States in such minerals.
    ``(c) Oil and Gas Resource Assessment and Report.--The United 
States Geological Survey shall conduct a resource assessment and 
publish a report of the findings of such resource assessment (`USGS 
Assessment and Report') within 1 year of the date of enactment of the 
Energy Policy Act of 2005. The USGS Assessment and Report shall provide 
an assessment of all oil and gas resources underlying the certain lands 
in Livingston Parish, Louisiana, as described in section 103 (the 
`Livingston Parish lands'). Upon a finding by the Secretary of the 
Interior based upon the USGS Assessment and Report that it is unlikely 
that economically recoverable oil and gas resources are present, the 
Secretary shall convey all rights to oil and gas underlying such lands 
to the recipients, or their successors, heirs, or assigns, of the 
conveyances under subsection (b). Such further conveyances shall be 
made within 180 days after a finding by the Secretary that it is 
unlikely that economically recoverable oil and gas resources are 
present.''.

                       Subtitle G--Miscellaneous

SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION 
              UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

    Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1465) is amended to read as follows:


                        ``APPEALS TO THE SECRETARY

    ``Sec. 319. (a) Notice.--Not later than 30 days after the date of 
the filing of an appeal to the Secretary of a consistency determination 
under section 307, the Secretary shall publish an initial notice in the 
Federal Register.
    ``(b) Closure of Record.--
        ``(1) In general.--Not later than the end of the 160-day period 
    beginning on the date of publication of an initial notice under 
    subsection (a), except as provided in paragraph (3), the Secretary 
    shall immediately close the decision record and receive no more 
    filings on the appeal.
        ``(2) Notice.--After closing the administrative record, the 
    Secretary shall immediately publish a notice in the Federal 
    Register that the administrative record has been closed.
        ``(3) Exception.--
            ``(A) In general.--Subject to subparagraph (B), during the 
        160-day period described in paragraph (1), the Secretary may 
        stay the closing of the decision record--
                ``(i) for a specific period mutually agreed to in 
            writing by the appellant and the State agency; or
                ``(ii) as the Secretary determines necessary to 
            receive, on an expedited basis--

                    ``(I) any supplemental information specifically 
                requested by the Secretary to complete a consistency 
                review under this Act; or
                    ``(II) any clarifying information submitted by a 
                party to the proceeding related to information in the 
                consolidated record compiled by the lead Federal 
                permitting agency.

            ``(B) Applicability.--The Secretary may only stay the 160-
        day period described in paragraph (1) for a period not to 
        exceed 60 days.
    ``(c) Deadline for Decision.--
        ``(1) In general.--Not later than 60 days after the date of 
    publication of a Federal Register notice stating when the decision 
    record for an appeal has been closed, the Secretary shall issue a 
    decision or publish a notice in the Federal Register explaining why 
    a decision cannot be issued at that time.
        ``(2) Subsequent decision.--Not later than 15 days after the 
    date of publication of a Federal Register notice explaining why a 
    decision cannot be issued within the 60-day period, the Secretary 
    shall issue a decision.''.

SEC. 382. APPEALS RELATING TO OFFSHORE MINERAL DEVELOPMENT.

    For any Federal administrative agency proceeding that is an appeal 
or review under section 319 of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1465), as amended by this Act, related to any Federal 
authorization for the permitting, approval, or other authorization of 
an energy project, the lead Federal permitting agency for the project 
shall, with the cooperation of Federal and State administrative 
agencies, maintain a consolidated record of all decisions made or 
actions taken by the lead agency or by another Federal or State 
administrative agency or officer. Such record shall be the initial 
record for appeals or reviews under that Act, provided that the record 
may be supplemented as expressly provided pursuant to section 319 of 
that Act.

SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL 
              SHELF LANDS ACT.

    (a) Royalty Relief.--
        (1) In general.--For purposes of providing compensation for 
    lessees and a State for which amounts are authorized by section 
    6004(c) of the Oil Pollution Act of 1990 (Public Law 101-380), a 
    lessee may withhold from payment any royalty due and owing to the 
    United States under any leases under the Outer Continental Shelf 
    Lands Act (43 U.S.C. 1301 et seq.) for offshore oil or gas 
    production from a covered lease tract if, on or before the date 
    that the payment is due and payable to the United States, the 
    lessee makes a payment to the State of 44 cents for every $1 of 
    royalty withheld.
        (2) Treatment of amounts.--Any royalty withheld by a lessee in 
    accordance with this section (including any portion thereof that is 
    paid to the State under paragraph (1)) shall be treated as paid for 
    purposes of satisfaction of the royalty obligations of the lessee 
    to the United States.
        (3) Certification of withheld amounts.--The Secretary of the 
    Treasury shall--
            (A) determine the amount of royalty withheld by a lessee 
        under this section; and
            (B) promptly publish a certification when the total amount 
        of royalty withheld by the lessee under this section is equal 
        to--
                (i) the dollar amount stated at page 47 of Senate 
            Report number 101-534, which is designated therein as the 
            total drainage claim for the West Delta field; plus
                (ii) interest as described at page 47 of that Report.
    (b) Period of Royalty Relief.--Subsection (a) shall apply to 
royalty amounts that are due and payable in the period beginning on 
October 1, 2006, and ending on the date on which the Secretary of the 
Treasury publishes a certification under subsection (a)(3)(B).
    (c) Definitions.--As used in this section:
        (1) Covered lease tract.--The term ``covered lease tract'' 
    means a leased tract (or portion of a leased tract)--
            (A) lying seaward of the zone defined and governed by 
        section 8(g) of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1337(g)); or
            (B) lying within such zone but to which such section does 
        not apply.
        (2) Lessee.--The term ``lessee''--
            (A) means a person or entity that, on the date of the 
        enactment of the Oil Pollution Act of 1990, was a lessee 
        referred to in section 6004(c) of that Act (as in effect on 
        that date of the enactment), but did not hold lease rights in 
        Federal offshore lease OCS-G-5669; and
            (B) includes successors and affiliates of a person or 
        entity described in subparagraph (A).

SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is amended to read as follows:

``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
        ``(1) Coastal political subdivision.--The term `coastal 
    political subdivision' means a political subdivision of a coastal 
    State any part of which political subdivision is--
            ``(A) within the coastal zone (as defined in section 304 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
        the coastal State as of the date of enactment of the Energy 
        Policy Act of 2005; and
            ``(B) not more than 200 nautical miles from the geographic 
        center of any leased tract.
        ``(2) Coastal population.--The term `coastal population' means 
    the population, as determined by the most recent official data of 
    the Census Bureau, of each political subdivision any part of which 
    lies within the designated coastal boundary of a State (as defined 
    in a State's coastal zone management program under the Coastal Zone 
    Management Act of 1972 (16 U.S.C. 1451 et seq.)).
        ``(3) Coastal state.--The term `coastal State' has the meaning 
    given the term in section 304 of the Coastal Zone Management Act of 
    1972 (16 U.S.C. 1453).
        ``(4) Coastline.--The term `coastline' has the meaning given 
    the term `coast line' in section 2 of the Submerged Lands Act (43 
    U.S.C. 1301).
        ``(5) Distance.--The term `distance' means the minimum great 
    circle distance, measured in statute miles.
        ``(6) Leased tract.--The term `leased tract' means a tract that 
    is subject to a lease under section 6 or 8 for the purpose of 
    drilling for, developing, and producing oil or natural gas 
    resources.
        ``(7) Leasing moratoria.--The term `leasing moratoria' means 
    the prohibitions on preleasing, leasing, and related activities on 
    any geographic area of the outer Continental Shelf as contained in 
    sections 107 through 109 of division E of the Consolidated 
    Appropriations Act, 2005 (Public Law 108-447; 118 Stat. 3063).
        ``(8) Political subdivision.--The term `political subdivision' 
    means the local political jurisdiction immediately below the level 
    of State government, including counties, parishes, and boroughs.
        ``(9) Producing state.--
            ``(A) In general.--The term `producing State' means a 
        coastal State that has a coastal seaward boundary within 200 
        nautical miles of the geographic center of a leased tract 
        within any area of the outer Continental Shelf.
            ``(B) Exclusion.--The term `producing State' does not 
        include a producing State, a majority of the coastline of which 
        is subject to leasing moratoria, unless production was 
        occurring on January 1, 2005, from a lease within 10 nautical 
        miles of the coastline of that State.
        ``(10) Qualified outer continental shelf revenues.--
            ``(A) In general.--The term `qualified Outer Continental 
        Shelf revenues' means all amounts received by the United States 
        from each leased tract or portion of a leased tract--
                ``(i) lying--

                    ``(I) seaward of the zone covered by section 8(g); 
                or
                    ``(II) within that zone, but to which section 8(g) 
                does not apply; and

                ``(ii) the geographic center of which lies within a 
            distance of 200 nautical miles from any part of the 
            coastline of any coastal State.
            ``(B) Inclusions.--The term `qualified Outer Continental 
        Shelf revenues' includes bonus bids, rents, royalties 
        (including payments for royalty taken in kind and sold), net 
        profit share payments, and related late-payment interest from 
        natural gas and oil leases issued under this Act.
            ``(C) Exclusion.--The term `qualified Outer Continental 
        Shelf revenues' does not include any revenues from a leased 
        tract or portion of a leased tract that is located in a 
        geographic area subject to a leasing moratorium on January 1, 
        2005, unless the lease was in production on January 1, 2005.
    ``(b) Payments to Producing States and Coastal Political 
Subdivisions.--
        ``(1) In general.--The Secretary shall, without further 
    appropriation, disburse to producing States and coastal political 
    subdivisions in accordance with this section $250,000,000 for each 
    of fiscal years 2007 through 2010.
        ``(2) Disbursement.--In each fiscal year, the Secretary shall 
    disburse to each producing State for which the Secretary has 
    approved a plan under subsection (c), and to coastal political 
    subdivisions under paragraph (4), such funds as are allocated to 
    the producing State or coastal political subdivision, respectively, 
    under this section for the fiscal year.
        ``(3) Allocation among producing states.--
            ``(A) In general.--Except as provided in subparagraph (C) 
        and subject to subparagraph (D), the amounts available under 
        paragraph (1) shall be allocated to each producing State based 
        on the ratio that--
                ``(i) the amount of qualified outer Continental Shelf 
            revenues generated off the coastline of the producing 
            State; bears to
                ``(ii) the amount of qualified outer Continental Shelf 
            revenues generated off the coastline of all producing 
            States.
            ``(B) Amount of outer continental shelf revenues.--For 
        purposes of subparagraph (A)--
                ``(i) the amount of qualified outer Continental Shelf 
            revenues for each of fiscal years 2007 and 2008 shall be 
            determined using qualified outer Continental Shelf revenues 
            received for fiscal year 2006; and
                ``(ii) the amount of qualified outer Continental Shelf 
            revenues for each of fiscal years 2009 and 2010 shall be 
            determined using qualified outer Continental Shelf revenues 
            received for fiscal year 2008.
            ``(C) Multiple producing states.--In a case in which more 
        than one producing State is located within 200 nautical miles 
        of any portion of a leased tract, the amount allocated to each 
        producing State for the leased tract shall be inversely 
        proportional to the distance between--
                ``(i) the nearest point on the coastline of the 
            producing State; and
                ``(ii) the geographic center of the leased tract.
            ``(D) Minimum allocation.--The amount allocated to a 
        producing State under subparagraph (A) shall be at least 1 
        percent of the amounts available under paragraph (1).
        ``(4) Payments to coastal political subdivisions.--
            ``(A) In general.--The Secretary shall pay 35 percent of 
        the allocable share of each producing State, as determined 
        under paragraph (3) to the coastal political subdivisions in 
        the producing State.
            ``(B) Formula.--Of the amount paid by the Secretary to 
        coastal political subdivisions under subparagraph (A)--
                ``(i) 25 percent shall be allocated to each coastal 
            political subdivision in the proportion that--

                    ``(I) the coastal population of the coastal 
                political subdivision; bears to
                    ``(II) the coastal population of all coastal 
                political subdivisions in the producing State;

                ``(ii) 25 percent shall be allocated to each coastal 
            political subdivision in the proportion that--

                    ``(I) the number of miles of coastline of the 
                coastal political subdivision; bears to
                    ``(II) the number of miles of coastline of all 
                coastal political subdivisions in the producing State; 
                and

                ``(iii) 50 percent shall be allocated in amounts that 
            are inversely proportional to the respective distances 
            between the points in each coastal political subdivision 
            that are closest to the geographic center of each leased 
            tract, as determined by the Secretary.
            ``(C) Exception for the state of louisiana.--For the 
        purposes of subparagraph (B)(ii), the coastline for coastal 
        political subdivisions in the State of Louisiana without a 
        coastline shall be considered to be \1/3\ the average length of 
        the coastline of all coastal political subdivisions with a 
        coastline in the State of Louisiana.
            ``(D) Exception for the state of alaska.--For the purposes 
        of carrying out subparagraph (B)(iii) in the State of Alaska, 
        the amounts allocated shall be divided equally among the two 
        coastal political subdivisions that are closest to the 
        geographic center of a leased tract.
            ``(E) Exclusion of certain leased tracts.--For purposes of 
        subparagraph (B)(iii), a leased tract or portion of a leased 
        tract shall be excluded if the tract or portion of a leased 
        tract is located in a geographic area subject to a leasing 
        moratorium on January 1, 2005, unless the lease was in 
        production on that date.
        ``(5) No approved plan.--
            ``(A) In general.--Subject to subparagraph (B) and except 
        as provided in subparagraph (C), in a case in which any amount 
        allocated to a producing State or coastal political subdivision 
        under paragraph (4) or (5) is not disbursed because the 
        producing State does not have in effect a plan that has been 
        approved by the Secretary under subsection (c), the Secretary 
        shall allocate the undisbursed amount equally among all other 
        producing States.
            ``(B) Retention of allocation.--The Secretary shall hold in 
        escrow an undisbursed amount described in subparagraph (A) 
        until such date as the final appeal regarding the disapproval 
        of a plan submitted under subsection (c) is decided.
            ``(C) Waiver.--The Secretary may waive subparagraph (A) 
        with respect to an allocated share of a producing State and 
        hold the allocable share in escrow if the Secretary determines 
        that the producing State is making a good faith effort to 
        develop and submit, or update, a plan in accordance with 
        subsection (c).
    ``(c) Coastal Impact Assistance Plan.--
        ``(1) Submission of state plans.--
            ``(A) In general.--Not later than July 1, 2008, the 
        Governor of a producing State shall submit to the Secretary a 
        coastal impact assistance plan.
            ``(B) Public participation.--In carrying out subparagraph 
        (A), the Governor shall solicit local input and provide for 
        public participation in the development of the plan.
        ``(2) Approval.--
            ``(A) In general.--The Secretary shall approve a plan of a 
        producing State submitted under paragraph (1) before disbursing 
        any amount to the producing State, or to a coastal political 
        subdivision located in the producing State, under this section.
            ``(B) Components.--The Secretary shall approve a plan 
        submitted under paragraph (1) if--
                ``(i) the Secretary determines that the plan is 
            consistent with the uses described in subsection (d); and
                ``(ii) the plan contains--

                    ``(I) the name of the State agency that will have 
                the authority to represent and act on behalf of the 
                producing State in dealing with the Secretary for 
                purposes of this section;
                    ``(II) a program for the implementation of the plan 
                that describes how the amounts provided under this 
                section to the producing State will be used;
                    ``(III) for each coastal political subdivision that 
                receives an amount under this section--

                        ``(aa) the name of a contact person; and
                        ``(bb) a description of how the coastal 
                    political subdivision will use amounts provided 
                    under this section;

                    ``(IV) a certification by the Governor that ample 
                opportunity has been provided for public participation 
                in the development and revision of the plan; and
                    ``(V) a description of measures that will be taken 
                to determine the availability of assistance from other 
                relevant Federal resources and programs.

        ``(3) Amendment.--Any amendment to a plan submitted under 
    paragraph (1) shall be--
            ``(A) developed in accordance with this subsection; and
            ``(B) submitted to the Secretary for approval or 
        disapproval under paragraph (4).
        ``(4) Procedure.--Not later than 90 days after the date on 
    which a plan or amendment to a plan is submitted under paragraph 
    (1) or (3), the Secretary shall approve or disapprove the plan or 
    amendment.
    ``(d) Authorized Uses.--
        ``(1) In general.--A producing State or coastal political 
    subdivision shall use all amounts received under this section, 
    including any amount deposited in a trust fund that is administered 
    by the State or coastal political subdivision and dedicated to uses 
    consistent with this section, in accordance with all applicable 
    Federal and State laws, only for one or more of the following 
    purposes:
            ``(A) Projects and activities for the conservation, 
        protection, or restoration of coastal areas, including wetland.
            ``(B) Mitigation of damage to fish, wildlife, or natural 
        resources.
            ``(C) Planning assistance and the administrative costs of 
        complying with this section.
            ``(D) Implementation of a federally-approved marine, 
        coastal, or comprehensive conservation management plan.
            ``(E) Mitigation of the impact of outer Continental Shelf 
        activities through funding of onshore infrastructure projects 
        and public service needs.
        ``(2) Compliance with authorized uses.--If the Secretary 
    determines that any expenditure made by a producing State or 
    coastal political subdivision is not consistent with this 
    subsection, the Secretary shall not disburse any additional amount 
    under this section to the producing State or the coastal political 
    subdivision until such time as all amounts obligated for 
    unauthorized uses have been repaid or reobligated for authorized 
    uses.
        ``(3) Limitation.--Not more than 23 percent of amounts received 
    by a producing State or coastal political subdivision for any 1 
    fiscal year shall be used for the purposes described in 
    subparagraphs (C) and (E) of paragraph (1).''.

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences under which the National Academy of 
Sciences shall conduct a study of the short-term and long-term 
availability of skilled workers to meet the energy and mineral security 
requirements of the United States.
    (b) Inclusions.--The study shall include an analysis of--
        (1) the need for and availability of workers for the oil, gas, 
    and mineral industries;
        (2) the availability of skilled labor at both entry level and 
    more senior levels; and
        (3) recommendations for future actions needed to meet future 
    labor requirements.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the study.

SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.

    No Federal or State permit or lease shall be issued for new oil and 
gas slant, directional, or offshore drilling in or under one or more of 
the Great Lakes.

SEC. 387. FEDERAL COALBED METHANE REGULATION.

    Any State currently on the list of Affected States established 
under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13368(b)) shall be removed from the list if, not later than 3 years 
after the date of enactment of this Act, the State takes, or prior to 
the date of enactment has taken, any of the actions required for 
removal from the list under such section 1339(b).

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
adding at the end the following:
    ``(p) Leases, Easements, or Rights-of-way for Energy and Related 
Purposes.--
        ``(1) In general.--The Secretary, in consultation with the 
    Secretary of the Department in which the Coast Guard is operating 
    and other relevant departments and agencies of the Federal 
    Government, may grant a lease, easement, or right-of-way on the 
    outer Continental Shelf for activities not otherwise authorized in 
    this Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.), 
    the Ocean Thermal Energy Conversion Act of 1980 (42 U.S.C. 9101 et 
    seq.), or other applicable law, if those activities--
            ``(A) support exploration, development, production, or 
        storage of oil or natural gas, except that a lease, easement, 
        or right-of-way shall not be granted in an area in which oil 
        and gas preleasing, leasing, and related activities are 
        prohibited by a moratorium;
            ``(B) support transportation of oil or natural gas, 
        excluding shipping activities;
            ``(C) produce or support production, transportation, or 
        transmission of energy from sources other than oil and gas; or
            ``(D) use, for energy-related purposes or for other 
        authorized marine-related purposes, facilities currently or 
        previously used for activities authorized under this Act, 
        except that any oil and gas energy-related uses shall not be 
        authorized in areas in which oil and gas preleasing, leasing, 
        and related activities are prohibited by a moratorium.
        ``(2) Payments and revenues.--(A) The Secretary shall establish 
    royalties, fees, rentals, bonuses, or other payments to ensure a 
    fair return to the United States for any lease, easement, or right-
    of-way granted under this subsection.
        ``(B) The Secretary shall provide for the payment of 27 percent 
    of the revenues received by the Federal Government as a result of 
    payments under this section from projects that are located wholly 
    or partially within the area extending three nautical miles seaward 
    of State submerged lands. Payments shall be made based on a formula 
    established by the Secretary by rulemaking no later than 180 days 
    after the date of enactment of this section that provides for 
    equitable distribution, based on proximity to the project, among 
    coastal states that have a coastline that is located within 15 
    miles of the geographic center of the project.
        ``(3) Competitive or noncompetitive basis.--Except with respect 
    to projects that meet the criteria established under section 388(d) 
    of the Energy Policy Act of 2005, the Secretary shall issue a 
    lease, easement, or right-of-way under paragraph (1) on a 
    competitive basis unless the Secretary determines after public 
    notice of a proposed lease, easement, or right-of-way that there is 
    no competitive interest.
        ``(4) Requirements.--The Secretary shall ensure that any 
    activity under this subsection is carried out in a manner that 
    provides for--
            ``(A) safety;
            ``(B) protection of the environment;
            ``(C) prevention of waste;
            ``(D) conservation of the natural resources of the outer 
        Continental Shelf;
            ``(E) coordination with relevant Federal agencies;
            ``(F) protection of national security interests of the 
        United States;
            ``(G) protection of correlative rights in the outer 
        Continental Shelf;
            ``(H) a fair return to the United States for any lease, 
        easement, or right-of-way under this subsection;
            ``(I) prevention of interference with reasonable uses (as 
        determined by the Secretary) of the exclusive economic zone, 
        the high seas, and the territorial seas;
            ``(J) consideration of--
                ``(i) the location of, and any schedule relating to, a 
            lease, easement, or right-of-way for an area of the outer 
            Continental Shelf; and
                ``(ii) any other use of the sea or seabed, including 
            use for a fishery, a sealane, a potential site of a 
            deepwater port, or navigation;
            ``(K) public notice and comment on any proposal submitted 
        for a lease, easement, or right-of-way under this subsection; 
        and
            ``(L) oversight, inspection, research, monitoring, and 
        enforcement relating to a lease, easement, or right-of-way 
        under this subsection.
        ``(5) Lease duration, suspension, and cancellation.--The 
    Secretary shall provide for the duration, issuance, transfer, 
    renewal, suspension, and cancellation of a lease, easement, or 
    right-of-way under this subsection.
        ``(6) Security.--The Secretary shall require the holder of a 
    lease, easement, or right-of-way granted under this subsection to--
            ``(A) furnish a surety bond or other form of security, as 
        prescribed by the Secretary;
            ``(B) comply with such other requirements as the Secretary 
        considers necessary to protect the interests of the public and 
        the United States; and
            ``(C) provide for the restoration of the lease, easement, 
        or right-of-way.
        ``(7) Coordination and consultation with affected state and 
    local governments.--The Secretary shall provide for coordination 
    and consultation with the Governor of any State or the executive of 
    any local government that may be affected by a lease, easement, or 
    right-of-way under this subsection.
        ``(8) Regulations.--Not later than 270 days after the date of 
    enactment of the Energy Policy Act of 2005, the Secretary, in 
    consultation with the Secretary of Defense, the Secretary of the 
    Department in which the Coast Guard is operating, the Secretary of 
    Commerce, heads of other relevant departments and agencies of the 
    Federal Government, and the Governor of any affected State, shall 
    issue any necessary regulations to carry out this subsection.
        ``(9) Effect of subsection.--Nothing in this subsection 
    displaces, supersedes, limits, or modifies the jurisdiction, 
    responsibility, or authority of any Federal or State agency under 
    any other Federal law.
        ``(10) Applicability.--This subsection does not apply to any 
    area on the outer Continental Shelf within the exterior boundaries 
    of any unit of the National Park System, National Wildlife Refuge 
    System, or National Marine Sanctuary System, or any National 
    Monument.''.
    (b) Coordinated OCS Mapping Initiative.--
        (1) In general.--The Secretary of the Interior, in cooperation 
    with the Secretary of Commerce, the Commandant of the Coast Guard, 
    and the Secretary of Defense, shall establish an interagency 
    comprehensive digital mapping initiative for the outer Continental 
    Shelf to assist in decisionmaking relating to the siting of 
    activities under subsection (p) of section 8 of the Outer 
    Continental Shelf Lands Act (43 U.S.C. 1337) (as added by 
    subsection (a)).
        (2) Use of data.--The mapping initiative shall use, and develop 
    procedures for accessing, data collected before the date on which 
    the mapping initiative is established, to the maximum extent 
    practicable.
        (3) Inclusions.--Mapping carried out under the mapping 
    initiative shall include an indication of the locations on the 
    outer Continental Shelf of--
            (A) Federally-permitted activities;
            (B) obstructions to navigation;
            (C) submerged cultural resources;
            (D) undersea cables;
            (E) offshore aquaculture projects; and
            (F) any area designated for the purpose of safety, national 
        security, environmental protection, or conservation and 
        management of living marine resources.
    (c) Conforming Amendment.--Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by striking the section heading 
and inserting the following: ``Leases, Easements, and Rights-of-way on 
the Outer Continental 
Shelf.--''.
    (d) Savings Provision.--Nothing in the amendment made by subsection 
(a) requires the resubmittal of any document that was previously 
submitted or the reauthorization of any action that was previously 
authorized with respect to a project for which, before the date of 
enactment of this Act--
        (1) an offshore test facility has been constructed; or
        (2) a request for a proposal has been issued by a public 
    authority.
    (e) State Claims to Jurisdiction Over Submerged Lands.--Nothing in 
this section shall be construed to alter, limit, or modify any claim of 
any State to any jurisdiction over, or any right, title, or interest 
in, any submerged lands.

SEC. 389. OIL SPILL RECOVERY INSTITUTE.

    Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et seq.) 
is amended--
        (1) in section 5001(i), by striking ``September 30, 2012'' and 
    inserting ``1 year after the date on which the Secretary, in 
    consultation with the Secretary of the Interior, determines that 
    oil and gas exploration, development, and production in the State 
    of Alaska have ceased''; and
        (2) in section 5006(c), by striking ``October 1, 2012'' and 
    inserting ``1 year after the date on which the Secretary, in 
    consultation with the Secretary of the Interior, determines that 
    oil and gas exploration, development, and production in the State 
    of Alaska have ceased,''.

SEC. 390. NEPA REVIEW.

    (a) NEPA Review.--Action by the Secretary of the Interior in 
managing the public lands, or the Secretary of Agriculture in managing 
National Forest System Lands, with respect to any of the activities 
described in subsection (b) shall be subject to a rebuttable 
presumption that the use of a categorical exclusion under the National 
Environmental Policy Act of 1969 (NEPA) would apply if the activity is 
conducted pursuant to the Mineral Leasing Act for the purpose of 
exploration or development of oil or gas.
    (b) Activities Described.--The activities referred to in subsection 
(a) are the following:
        (1) Individual surface disturbances of less than 5 acres so 
    long as the total surface disturbance on the lease is not greater 
    than 150 acres and site-specific analysis in a document prepared 
    pursuant to NEPA has been previously completed.
        (2) Drilling an oil or gas well at a location or well pad site 
    at which drilling has occurred previously within 5 years prior to 
    the date of spudding the well.
        (3) Drilling an oil or gas well within a developed field for 
    which an approved land use plan or any environmental document 
    prepared pursuant to NEPA analyzed such drilling as a reasonably 
    foreseeable activity, so long as such plan or document was approved 
    within 5 years prior to the date of spudding the well.
        (4) Placement of a pipeline in an approved right-of-way 
    corridor, so long as the corridor was approved within 5 years prior 
    to the date of placement of the pipeline.
        (5) Maintenance of a minor activity, other than any 
    construction or major renovation or a building or facility.

                  Subtitle H--Refinery Revitalization

SEC. 391. FINDINGS AND DEFINITIONS.

    (a) Findings.--Congress finds that--
        (1) it serves the national interest to increase petroleum 
    refining capacity for gasoline, heating oil, diesel fuel, jet fuel, 
    kerosene, and petrochemical feedstocks wherever located within the 
    United States, to bring more supply to the markets for the use of 
    the American people;
        (2) United States demand for refined petroleum products 
    currently exceeds the country's petroleum refining capacity to 
    produce such products;
        (3) this excess demand has been met with increased imports;
        (4) due to lack of capacity, refined petroleum product imports 
    are expected to grow from 7.9 percent to 10.7 percent of total 
    refined product by 2025;
        (5) refiners are still subject to significant environmental and 
    other regulations and face several new requirements under the Clean 
    Air Act (42 U.S.C. 7401 et seq.) over the next decade; and
        (6) better coordination of Federal and State regulatory reviews 
    may help facilitate siting and construction of new refineries to 
    meet the demand in the United States for refined products.
    (b) Definitions.--In this subtitle:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) State.--The term ``State'' means--
            (A) a State;
            (B) the Commonwealth of Puerto Rico; and
            (C) any other territory or possession of the United States.

SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.

    (a) In General.--At the request of the Governor of a State, the 
Administrator may enter into a refinery permitting cooperative 
agreement with the State, under which each party to the agreement 
identifies steps, including timelines, that it will take to streamline 
the consideration of Federal and State environmental permits for a new 
refinery.
    (b) Authority Under Agreement.--The Administrator shall be 
authorized to--
        (1) accept from a refiner a consolidated application for all 
    permits required from the Environmental Protection Agency, to the 
    extent consistent with other applicable law;
        (2) enter into memoranda of agreement with other Federal 
    agencies to coordinate consideration of refinery applications and 
    permits among Federal agencies; and
        (3) enter into memoranda of agreement with a State, under which 
    Federal and State review of refinery permit applications will be 
    coordinated and concurrently considered, to the extent practicable.
    (c) State Assistance.--The Administrator is authorized to provide 
financial assistance to State governments to facilitate the hiring of 
additional personnel with expertise in fields relevant to consideration 
of refinery permits.
    (d) Other Assistance.--The Administrator is authorized to provide 
technical, legal, or other assistance to State governments to 
facilitate their review of applications to build new refineries.

                             TITLE IV--COAL
                Subtitle A--Clean Coal Power Initiative

SEC. 401. 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 subtitle $200,000,000 for each of fiscal years 2006 through 2014, 
to remain available until expended.
    (b) Report.--The Secretary shall submit to Congress the report 
required by this subsection not later than March 31, 2007. The report 
shall include, with respect to subsection (a), a 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 Government Accountability 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. 402. PROJECT CRITERIA.

    (a) In General.--To be eligible to receive assistance under this 
subtitle, a project shall 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 401(a), the Secretary shall ensure that at least 
        70 percent of the funds are used only to fund projects on coal-
        based gasification technologies, including--
                (i) gasification combined cycle;
                (ii) gasification fuel cells and turbine combined 
            cycle;
                (iii) gasification coproduction;
                (iv) hybrid gasification and combustion; and
                (v) other advanced coal based technologies capable of 
            producing a concentrated stream of carbon dioxide.
            (B) Technical milestones.--
                (i) Periodic determination.--

                    (I) In general.--The Secretary shall periodically 
                set technical milestones specifying the emission and 
                thermal efficiency levels that coal gasification 
                projects under this subtitle shall be designed, and 
                reasonably expected, to achieve.
                    (II) Prescriptive milestones.--The technical 
                milestones shall become more prescriptive during the 
                period of the clean coal power initiative.

                (ii) 2020 goals.--The Secretary shall establish the 
            periodic milestones so as to achieve by the year 2020 coal 
            gasification projects able--

                    (I) to remove at least 99 percent of sulfur 
                dioxide;
                    (II) to emit not more than .05 lbs of 
                NO<INF>x</INF> per million Btu;
                    (III) to achieve at least 95 percent reductions in 
                mercury emissions; and
                    (IV) to achieve a thermal efficiency of at least--

                        (aa) 50 percent for coal of more than 9,000 
                    Btu;
                        (bb) 48 percent for coal of 7,000 to 9,000 Btu; 
                    and
                        (cc) 46 percent for coal of less than 7,000 
                    Btu.
        (2) Other projects.--
            (A) Allocation of funds.--The Secretary shall ensure that 
        up to 30 percent of the funds made available under section 
        401(a) are used to fund projects other than those described in 
        paragraph (1).
            (B) Technical milestones.--
                (i) Periodic determination.--

                    (I) In general.--The Secretary shall periodically 
                establish technical milestones specifying the emission 
                and thermal efficiency levels that projects funded 
                under this paragraph shall be designed, and reasonably 
                expected, to achieve.
                    (II) Prescriptive milestones.--The technical 
                milestones shall become more prescriptive during the 
                period of the clean coal power initiative.

                (ii) 2020 goals.--The Secretary shall set the periodic 
            milestones so as to achieve by the year 2020 projects 
            able--

                    (I) to remove at least 97 percent of sulfur 
                dioxide;
                    (II) to emit no more than .08 lbs of NO<INF>x</INF> 
                per million Btu;
                    (III) to achieve at least 90 percent reductions in 
                mercury emissions; and
                    (IV) to achieve a thermal efficiency of at least--

                        (aa) 43 percent for coal of more than 9,000 
                    Btu;
                        (bb) 41 percent for coal of 7,000 to 9,000 Btu; 
                    and
                        (cc) 39 percent for coal of less than 7,000 
                    Btu.
        (3) Consultation.--Before setting the technical milestones 
    under paragraphs (1)(B) and (2)(B), the Secretary shall consult 
    with--
            (A) the Administrator of the Environmental Protection 
        Agency; and
            (B) interested entities, including--
                (i) coal producers;
                (ii) industries using coal;
                (iii) organizations that promote coal or advanced coal 
            technologies;
                (iv) environmental organizations;
                (v) organizations representing workers; and
                (vi) organizations representing consumers.
        (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 described in paragraphs 
    (1)(B)(ii)(IV) and (2)(B)(ii)(IV), 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) Administration.--
            (A) Elevation of site.--In evaluating project proposals to 
        achieve thermal efficiency levels established under paragraphs 
        (1)(B)(i) and (2)(B)(i) and in determining progress towards 
        thermal efficiency milestones under paragraphs (1)(B)(ii)(IV), 
        (2)(B)(ii)(IV), and (4), the Secretary shall take into account 
        and make adjustments for the elevation of the site at which a 
        project is proposed to be constructed.
            (B) Applicability of milestones.--In applying the thermal 
        efficiency milestones under paragraphs (1)(B)(ii)(IV), 
        (2)(B)(ii)(IV), and (4) to projects that separate and capture 
        at least 50 percent of the potential emissions of carbon 
        dioxide by a facility, the energy used for separation and 
        capture of carbon dioxide shall not be counted in calculating 
        the thermal efficiency.
            (C) Permitted uses.--In carrying out this section, the 
        Secretary may give priority to projects that include, as part 
        of the project--
                (i) the separation or capture of carbon dioxide; or
                (ii) the reduction of the demand for natural gas if 
            deployed.
    (c) Financial Criteria.--The Secretary shall not provide financial 
assistance under this subtitle for a project unless the recipient 
documents to the satisfaction of the Secretary that--
        (1) the recipient is financially responsible;
        (2) the recipient will provide sufficient information to the 
    Secretary to enable the Secretary to ensure that the 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, as determined by the Secretary--
        (1) meet the requirements of subsections (a), (b), and (c); and
        (2) are likely--
            (A) to achieve overall cost reductions in the use of coal 
        to generate useful forms of energy or chemical feedstocks;
            (B) to 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
            (C) to 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) Cost-Sharing.--In carrying out this subtitle, the Secretary 
shall require cost sharing in accordance with section 988.
    (f) Scheduled Completion of Selected Projects.--
        (1) In general.--In selecting a project for financial 
    assistance under this section, the Secretary shall establish a 
    reasonable period of time during which the owner or operator of the 
    project shall complete the construction or demonstration phase of 
    the project, as the Secretary determines to be appropriate.
        (2) Condition of financial assistance.--The Secretary shall 
    require as a condition of receipt of any financial assistance under 
    this subtitle that the recipient of the assistance enter into an 
    agreement with the Secretary not to request an extension of the 
    time period established for the project by the Secretary under 
    paragraph (1).
        (3) Extension of time period.--
            (A) In general.--Subject to subparagraph (B), the Secretary 
        may extend the time period established under paragraph (1) if 
        the Secretary determines, in the sole discretion of the 
        Secretary, that the owner or operator of the project cannot 
        complete the construction or demonstration phase of the project 
        within the time period due to circumstances beyond the control 
        of the owner or operator.
            (B) Limitation.--The Secretary shall not extend a time 
        period under subparagraph (A) by more than 4 years.
    (g) Fee Title.--The Secretary may vest fee title or other property 
interests acquired under cost-share clean coal power initiative 
agreements under this subtitle in any entity, including the United 
States.
    (h) Data Protection.--For a period not exceeding 5 years after 
completion of the operations phase of a cooperative agreement, the 
Secretary may provide appropriate protections (including exemptions 
from subchapter II of chapter 5 of title 5, United States Code) against 
the dissemination of information that--
        (1) results from demonstration activities carried out under the 
    clean coal power initiative program; and
        (2) would be a trade secret or commercial or financial 
    information that is privileged or confidential if the information 
    had been obtained from and first produced by a non-Federal party 
    participating in a clean coal power initiative project.
    (i) Applicability.--No technology, or level of emission reduction, 
solely by reason of the use of the technology, or the achievement of 
the emission reduction, by 1 or more facilities receiving assistance 
under this Act, shall be considered to be--
        (1) adequately demonstrated for purposes of section 111 of the 
    Clean Air Act (42 U.S.C. 7411);
        (2) achievable for purposes of section 169 of that Act (42 
    U.S.C. 7479); or
        (3) achievable in practice for purposes of section 171 of that 
    Act (42 U.S.C. 7501).

SEC. 403. REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
once every 2 years thereafter through 2014, the Secretary, in 
consultation with other appropriate Federal agencies, shall submit to 
Congress a report describing--
        (1) the technical milestones set forth in section 402 and how 
    those milestones ensure progress toward meeting the requirements of 
    subsections (b)(1)(B) and (b)(2) of section 402; and
        (2) the status of projects funded under this subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

    (a) In General.--As part of the clean coal power initiative, the 
Secretary shall award competitive, merit-based grants to institutions 
of higher education for the establishment of centers of excellence for 
energy systems of the future.
    (b) Basis for Grants.--The Secretary shall award grants under this 
section to institutions of higher education that show the greatest 
potential for advancing new clean coal technologies.

                    Subtitle B--Clean Power Projects

SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary may provide loan guarantees for a project to produce energy 
from coal of less than 7,000 Btu/lb. using appropriate advanced 
integrated gasification combined cycle technology, including repowering 
of existing facilities, that--
        (1) is combined with wind and other renewable sources;
        (2) minimizes and offers the potential to sequester carbon 
    dioxide emissions; and
        (3) provides a ready source of hydrogen for near-site fuel cell 
    demonstrations.
    (b) Requirements.--The facility--
        (1) may be built in stages;
        (2) shall have a combined output of at least 200 megawatts at 
    successively more competitive rates; and
        (3) shall be located in the Upper Great Plains.
    (c) Technical Criteria.--Technical criteria described in section 
402(b) shall apply to the facility.
    (d) Investment Tax Credits.--
        (1) In general.--The loan guarantees provided under this 
    section do not preclude the facility from receiving an allocation 
    for investment tax credits under section 48A of the Internal 
    Revenue Code of 1986.
        (2) Other funding.--Use of the investment tax credit described 
    in paragraph (1) does not prohibit the use of other clean coal 
    program funding.

SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN 
              SERVICE.

    (a) Definitions.--In this section:
        (1) Borrower.--The term ``borrower'' means the owner of the 
    clean coal technology plant.
        (2) Clean coal technology plant.--The term ``clean coal 
    technology plant'' means the plant located near Healy, Alaska, 
    constructed under Department cooperative agreement number DE-FC-22-
    91PC90544.
        (3) Cost of a direct loan.--The term ``cost of a direct loan'' 
    has the meaning given the term in section 502(5)(B) of the Federal 
    Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).
    (b) Authorization.--Subject to subsection (c), the Secretary shall 
use amounts made available under subsection (e) to provide the cost of 
a direct loan to the borrower for purposes of placing the clean coal 
technology plant into reliable operation for the generation of 
electricity.
    (c) Requirements.--
        (1) Maximum loan amount.--The amount of the direct loan 
    provided under subsection (b) shall not exceed $80,000,000.
        (2) Determinations by secretary.--Before providing the direct 
    loan to the borrower under subsection (b), the Secretary shall 
    determine that--
            (A) the plan of the borrower for placing the clean coal 
        technology plant in reliable operation has a reasonable 
        prospect of success;
            (B) the amount of the loan (when combined with amounts 
        available to the borrower from other sources) will be 
        sufficient to carry out the project; and
            (C) there is a reasonable prospect that the borrower will 
        repay the principal and interest on the loan.
        (3) Interest; term.--The direct loan provided under subsection 
    (b) shall bear interest at a rate and for a term that the Secretary 
    determines appropriate, after consultation with the Secretary of 
    the Treasury, taking into account the needs and capacities of the 
    borrower and the prevailing rate of interest for similar loans made 
    by public and private lenders.
        (4) Additional terms and conditions.--The Secretary may require 
    any other terms and conditions that the Secretary determines to be 
    appropriate.
    (d) Use of Payments.--The Secretary shall retain any payments of 
principal and interest on the direct loan provided under subsection (b) 
to support energy research and development activities, to remain 
available until expended, subject to any other conditions in an 
applicable appropriations Act.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to provide the cost of a direct 
loan under subsection (b).

SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary shall carry out a project to demonstrate production of energy 
from coal mined in the western United States using integrated 
gasification combined cycle technology (referred to in this section as 
the ``demonstration project'').
    (b) Components.--The demonstration project--
        (1) may include repowering of existing facilities;
        (2) shall be designed to demonstrate the ability to use coal 
    with an energy content of not more than 9,000 Btu/lb.; and
        (3) shall be capable of removing and sequestering carbon 
    dioxide emissions.
    (c) All Types of Western Coals.--Notwithstanding the foregoing, and 
to the extent economically feasible, the demonstration project shall 
also be designed to demonstrate the ability to use a variety of types 
of coal (including subbituminous and bituminous coal with an energy 
content of up to 13,000 Btu/lb.) mined in the western United States.
    (d) Location.--The demonstration project shall be located in a 
western State at an altitude of greater than 4,000 feet above sea 
level.
    (e) Cost Sharing.--The Federal share of the cost of the 
demonstration project shall be determined in accordance with section 
988.
    (f) Loan Guarantees.--Notwithstanding title XIV, the demonstration 
project shall not be eligible for Federal loan guarantees.

SEC. 414. COAL GASIFICATION.

    The Secretary is authorized to provide loan guarantees for a 
project to produce energy from a plant using integrated gasification 
combined cycle technology of at least 400 megawatts in capacity that 
produces power at competitive rates in deregulated energy generation 
markets and that does not receive any subsidy (direct or indirect) from 
ratepayers.

SEC. 415. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for at least 
5 petroleum coke gasification projects.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

    The Secretary shall use $5,000,000 from amounts appropriated to 
initiate, through the Chicago Operations Office, a project to 
demonstrate the viability of high-energy electron scrubbing technology 
on commercial-scale electrical generation using high-sulfur coal.

SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN 
              COAL.

    (a) In General.--The Secretary shall carry out a program to 
evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch transportation 
fuels, and other transportation fuels, manufactured from Illinois basin 
coal, including the capital modification of existing facilities and the 
construction of testing facilities under subsection (b).
    (b) Facilities.--For the purpose of evaluating the commercial and 
technical viability of different processes for producing Fischer-
Tropsch transportation fuels, and other transportation fuels, from 
Illinois basin coal, the Secretary shall support the use and capital 
modification of existing facilities and the construction of new 
facilities at--
        (1) Southern Illinois University Coal Research Center;
        (2) University of Kentucky Center for Applied Energy Research; 
    and
        (3) Energy Center at Purdue University.
    (c) Gasification Products Test Center.--In conjunction with the 
activities described in subsections (a) and (b), the Secretary shall 
construct a test center to evaluate and confirm liquid and gas products 
from syngas catalysis in order that the system has an output of at 
least 500 gallons of Fischer-Tropsch transportation fuel per day in a 
24-hour operation.
    (d) Milestones.--
        (1) Selection of processes.--Not later than 180 days after the 
    date of enactment of this Act, the Secretary shall select processes 
    for evaluating the commercial and technical viability of different 
    processes of producing Fischer-Tropsch transportation fuels, and 
    other transportation fuels, from Illinois basin coal.
        (2) Agreements.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary shall offer to enter into 
    agreements--
            (A) to carry out the activities described in this section, 
        at the facilities described in subsection (b); and
            (B) for the capital modifications or construction of the 
        facilities at the locations described in subsection (b).
        (3) Evaluations.--Not later than 3 years after the date of 
    enactment of the Act, the Secretary shall begin, at the facilities 
    described in subsection (b), evaluation of the technical and 
    commercial viability of different processes of producing Fischer-
    Tropsch transportation fuels, and other transportation fuels, from 
    Illinois basin coal.
        (4) Construction of facilities.--
            (A) In general.--The Secretary shall construct the 
        facilities described in subsection (b) at the lowest cost 
        practicable.
            (B) Grants or agreements.--The Secretary may make grants or 
        enter into agreements or contracts with the institutions of 
        higher education described in subsection (b).
    (e) Cost Sharing.--The cost of making grants under this section 
shall be shared in accordance with section 988.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $85,000,000 for the period of 
fiscal years 2006 through 2010.

                 Subtitle C--Coal and Related Programs

SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.

    (a) Amendment.--The Energy Policy Act of 1992 (42 U.S.C. 13201 et 
seq.) is amended by adding at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. PURPOSES.

    ``The purposes of this title are to--
        ``(1) promote national energy policy and energy security, 
    diversity, and economic competitiveness benefits that result from 
    the increased use of coal;
        ``(2) mitigate financial risks, reduce the cost of clean coal 
    generation, and increase the marketplace acceptance of clean coal 
    generation and pollution control equipment and processes; and
        ``(3) facilitate the environmental performance of clean coal 
    generation.

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program of 
financial assistance to--
        ``(1) facilitate the production and generation of coal-based 
    power, through the deployment of clean coal electric generating 
    equipment and processes that, compared to equipment or processes 
    that are in operation on a full scale--
            ``(A) improve--
                ``(i) energy efficiency; or
                ``(ii) environmental performance consistent with 
            relevant Federal and State clean air requirements, 
            including those promulgated under the Clean Air Act (42 
            U.S.C. 7401 et seq.); and
            ``(B) are not yet cost competitive; and
        ``(2) facilitate the utilization of existing coal-based 
    electricity generation plants through projects that--
            ``(A) deploy advanced air pollution control equipment and 
        processes; and
            ``(B) are designed to voluntarily enhance environmental 
        performance above current applicable obligations under the 
        Clean Air Act and State implementation efforts pursuant to such 
        Act.
    ``(b) Financial Criteria.--As determined by the Secretary for a 
particular project, financial assistance under this title shall be in 
the form of--
        ``(1) cost-sharing of an appropriate percentage of the total 
    project cost, not to exceed 50 percent as calculated under section 
    988 of the Energy Policy Act of 2005; or
        ``(2) financial assistance, including grants, cooperative 
    agreements, or loans as authorized under this Act or other 
    statutory authority of the Secretary.

``SEC. 3103. GENERATION PROJECTS.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(1) may include--
        ``(1) equipment or processes previously supported by a 
    Department of Energy program;
        ``(2) advanced combustion equipment and processes that the 
    Secretary determines will be cost-effective and could substantially 
    contribute to meeting environmental or energy needs, including 
    gasification, gasification fuel cells, gasification coproduction, 
    oxidation combustion techniques, ultra-supercritical boilers, and 
    chemical looping; and
        ``(3) hybrid gasification/combustion systems, including systems 
    integrating fuel cells with gasification or combustion units.
    ``(b) Criteria.--The Secretary shall establish criteria for the 
selection of generation projects under section 3102(a)(1). The 
Secretary may modify the criteria as appropriate to reflect 
improvements in equipment, except that the criteria shall not be 
modified to be less stringent. The selection criteria shall include--
        ``(1) prioritization of projects whose installation is likely 
    to result in significant air quality improvements in nonattainment 
    air quality areas;
        ``(2) prioritization of projects whose installation is likely 
    to result in lower emission rates of pollution;
        ``(3) prioritization of projects that result in the repowering 
    or replacement of older, less efficient units;
        ``(4) documented broad interest in the procurement of the 
    equipment and utilization of the processes used in the projects by 
    owners or operators of facilities for electricity generation;
        ``(5) equipment and processes beginning in 2006 through 2011 
    that are projected to achieve a thermal efficiency of--
            ``(A) 40 percent for coal of more than 9,000 Btu per pound 
        based on higher heating values;
            ``(B) 38 percent for coal of 7,000 to 9,000 Btu per pound 
        passed on higher heating values; and
            ``(C) 36 percent for coal of less than 7,000 Btu per pound 
        based on higher heating values;
    except that energy used for coproduction or cogeneration shall not 
    be counted in calculating the thermal efficiency under this 
    paragraph; and
        ``(6) equipment and processes beginning in 2012 and 2013 that 
    are projected to achieve a thermal efficiency of--
            ``(A) 45 percent for coal of more than 9,000 Btu per pound 
        based on higher heating values;
            ``(B) 44 percent for coal of 7,000 to 9,000 Btu per pound 
        passed on higher heating values; and
            ``(C) 40 percent for coal of less than 7,000 Btu per pound 
        based on higher heating values;
    except that energy used for coproduction or cogeneration shall not 
    be counted in calculating the thermal efficiency under this 
    paragraph.
    ``(c) Program Balance and Priority.--In carrying out the program 
under section 3102(a)(1), the Secretary shall ensure, to the extent 
practicable, that--
        ``(1) between 25 percent and 75 percent of the projects 
    supported are for the sole purpose of electrical generation; and
        ``(2) priority is given to projects that use electrical 
    generation equipment and processes that have been developed and 
    demonstrated and applied in actual production of electricity, but 
    are not yet cost-competitive, and that achieve greater efficiency 
    and environmental performance.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out section 3102(a)(1)--
        ``(1) $250,000,000 for fiscal year 2007;
        ``(2) $350,000,000 for fiscal year 2008;
        ``(3) $400,000,000 for each of fiscal years 2009 through 2012; 
    and
        ``(4) $300,000,000 for fiscal year 2013.
    ``(e) Applicability.--No technology, or level of emission 
reduction, shall be treated as adequately demonstrated for purpose 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 one or more facilities receiving assistance 
under section 3102(a)(1).

``SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.

    ``(a) Eligible Projects.--Projects supported under section 
3102(a)(2) shall--
        ``(1) utilize technologies that meet relevant Federal and State 
    clean air requirements applicable to the unit or facility, 
    including being 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); or
        ``(2) utilize equipment or processes that exceed relevant 
    Federal or State clean air requirements applicable to the unit or 
    facilities included in the projects by achieving greater efficiency 
    or environmental performance.
    ``(b) Priority in Project Selection.--In making an award under 
section 3102(a)(2), the Secretary shall give priority to--
        ``(1) projects whose installation is likely to result in 
    significant air quality improvements in nonattainment air quality 
    areas or substantially reduce the emission level of criteria 
    pollutants and mercury air emissions;
        ``(2) projects for pollution control that result in the 
    mitigation or collection of more than 1 pollutant; and
        ``(3) projects designed to allow the use of the waste 
    byproducts or other byproducts of the equipment.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out section 3102(a)(2)--
        ``(1) $300,000,000 for fiscal year 2007;
        ``(2) $100,000,000 for fiscal year 2008;
        ``(3) $40,000,000 for fiscal year 2009;
        ``(4) $30,000,000 for fiscal year 2010; and
        ``(5) $30,000,000 for fiscal year 2011.
    ``(d) Applicability.--No technology, or level of emission reduction 
under subsection (a)(2) shall be treated as adequately demonstrated for 
purpose 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 one or more facilities 
receiving assistance under section 3102(a)(2).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding 
at the end the following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

    ``Sec. 3101. Purposes.
    ``Sec. 3102. Authorization of program.
    ``Sec. 3103. Generation projects.
    ``Sec. 3104. Air quality enhancement program.''.

                    Subtitle D--Federal Coal Leases

SEC. 431. SHORT TITLE.

    This subtitle may be cited as the ``Coal Leasing Amendments Act of 
2005''.

SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended--
        (1) in the first sentence, by striking ``Any person'' and 
    inserting the following: ``(a)(1) Except as provided in paragraph 
    (3), on a finding by the Secretary under paragraph (2), any 
    person'';
        (2) in the second sentence, by striking ``The Secretary'' and 
    inserting the following:
    ``(b) The Secretary'';
        (3) in the third sentence, by striking ``The minimum'' and 
    inserting the following:
    ``(c) The minimum'';
        (4) in subsection (a) (as designated by paragraph (1))--
            (A) by striking ``upon'' and all that follows and inserting 
        the following: ``secure modifications of the original coal 
        lease by including additional coal lands or coal deposits 
        contiguous or cornering to those embraced in the lease.''; and
            (B) by adding at the end the following:
    ``(2) A finding referred to in paragraph (1) is a finding by the 
Secretary that the modifications--
        ``(A) would be in the interest of the United States;
        ``(B) would not displace a competitive interest in the lands; 
    and
        ``(C) would not include lands or deposits that can be developed 
    as part of another potential or existing operation.
    ``(3) In no case shall the total area added by modifications to an 
existing coal lease under paragraph (1)--
        ``(A) exceed 960 acres; or
        ``(B) add acreage larger than that in the original lease.''.

SEC. 433. APPROVAL OF LOGICAL MINING UNITS.

    Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is 
amended--
        (1) by inserting ``(A)'' after ``(2)''; and
        (2) by adding at the end the following:
    ``(B) The Secretary may establish a period of more than 40 years if 
the Secretary determines that the longer period--
        ``(i) will ensure the maximum economic recovery of a coal 
    deposit; or
        ``(ii) the longer period is in the interest of the orderly, 
    efficient, or economic development of a coal resource.''.

SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) is 
amended--
        (1) in the first sentence, by striking ``Each lease'' and 
    inserting the following: ``(1) Each lease'';
        (2) in the second sentence, by striking ``The Secretary'' and 
    inserting the following:
    ``(2) The Secretary'';
        (3) in the third sentence, by striking ``Such advance 
    royalties'' and inserting the following:
    ``(3) Advance royalties described in paragraph (2)'';
        (4) in the seventh sentence, by striking ``The Secretary'' and 
    inserting the following:
    ``(6) The Secretary'';
        (5) in the last sentence, by striking ``Nothing'' and inserting 
    the following:
    ``(7) Nothing'';
        (6) by striking the fourth, fifth, and sixth sentences; and
        (7) by inserting after paragraph (3) (as designated by 
    paragraph (3)) the following:
    ``(4) Advance royalties described in paragraph (2) shall be 
computed--
        ``(A) based on--
            ``(i) the average price in the spot market for sales of 
        comparable coal from the same region during the last month of 
        each applicable continued operation year; or
            ``(ii) in the absence of a spot market for comparable coal 
        from the same region, by using a comparable method established 
        by the Secretary of the Interior to capture the commercial 
        value of coal; and
        ``(B) based on commercial quantities, as defined by regulation 
    by the Secretary of the Interior.
    ``(5) The aggregate number of years during the period of any lease 
for which advance royalties may be accepted in lieu of the condition of 
continued operation shall not exceed 20 years.
    ``(6) The amount of any production royalty paid for any year shall 
be reduced (but not below 0) by the amount of any advance royalties 
paid under a lease described in paragraph (5) to the extent that the 
advance royalties have not been used to reduce production royalties for 
a prior year.''.

SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
              OPERATION AND RECLAMATION PLAN.

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

SEC. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO 
              BONUS BIDS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) is 
amended by adding at the end the following:
    ``(4)(A) The Secretary shall not require a surety bond or any other 
financial assurance to guarantee payment of deferred bonus bid 
installments with respect to any coal lease issued on a cash bonus bid 
to a lessee or successor in interest having a history of a timely 
payment of noncontested coal royalties and advanced coal royalties in 
lieu of production (where applicable) and bonus bid installment 
payments.
    ``(B) The Secretary may waive any requirement that a lessee provide 
a surety bond or other financial assurance to guarantee payment of 
deferred bonus bid installment with respect to any coal lease issued 
before the date of the enactment of the Energy Policy Act of 2005 only 
if the Secretary determines that the lessee has a history of making 
timely payments referred to in subparagraph (A).
    ``(5) Notwithstanding any other provision of law, if the lessee 
under a coal lease fails to pay any installment of a deferred cash 
bonus bid within 10 days after the Secretary provides written notice 
that payment of the installment is past due--
        ``(A) the lease shall automatically terminate; and
        ``(B) any bonus payments already made to the United States with 
    respect to the lease shall not be returned to the lessee or 
    credited in any future lease sale.''.

SEC. 437. INVENTORY REQUIREMENT.

    (a) Review of Assessments.--
        (1) In general.--The Secretary of the Interior, in consultation 
    with the Secretary of Agriculture and the Secretary, shall review 
    coal assessments and other available data to identify--
            (A) Federal lands with coal resources that are available 
        for development;
            (B) the extent and nature of any restrictions on the 
        development of coal resources on Federal lands identified under 
        paragraph (1); and
            (C) with respect to areas of such lands for which 
        sufficient data exists, resources of compliant coal and 
        supercompliant coal.
        (2) Definitions.--For purposes of this subsection--
            (A) the term ``compliant coal'' means coal that contains 
        not less than 1.0 and not more than 1.2 pounds of sulfur 
        dioxide per million Btu; and
            (B) the term ``supercompliant coal'' means coal that 
        contains less than 1.0 pounds of sulfur dioxide per million 
        Btu.
    (b) Completion and Updating of the Inventory.--The Secretary--
        (1) shall complete the inventory under subsection (a) by not 
    later than 2 years after the date of enactment of this Act; and
        (2) shall update the inventory as the availability of data and 
    developments in technology warrant.
    (c) Report.--The Secretary shall submit to the Committee on 
Resources of the House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate and make publicly 
available--
        (1) a report containing the inventory under this section, by 
    not later than 2 years after the effective date of this section; 
    and
        (2) each update of such inventory.

SEC. 438. APPLICATION OF AMENDMENTS.

    The amendments made by this subtitle apply with respect to any coal 
lease issued before, on, or after the date of the enactment of this 
Act.

                         TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Indian Tribal Energy Development 
and Self-Determination Act of 2005''.

SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

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


              ``OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

    ``Sec. 217. (a) Establishment.--There is established within the 
Department an Office of Indian Energy Policy and Programs (referred to 
in this section as the `Office'). The Office shall be headed by a 
Director, who shall be appointed by the Secretary and compensated at a 
rate equal to that of level IV of the Executive Schedule under section 
5315 of title 5, United States Code.
    ``(b) Duties of Director.--The Director, in accordance with Federal 
policies promoting Indian self-determination and the purposes of this 
Act, shall provide, direct, foster, coordinate, and implement energy 
planning, education, management, conservation, and delivery programs of 
the Department that--
        ``(1) promote Indian tribal energy development, efficiency, and 
    use;
        ``(2) reduce or stabilize energy costs;
        ``(3) enhance and strengthen Indian tribal energy and economic 
    infrastructure relating to natural resource development and 
    electrification; and
        ``(4) bring electrical power and service to Indian land and the 
    homes of tribal members located on Indian lands or acquired, 
    constructed, or improved (in whole or in part) with Federal 
    funds.''.
    (b) Conforming Amendments.--
        (1) The table of contents of the Department of Energy 
    Organization Act (42 U.S.C. prec. 7101) is amended--
            (A) in the item relating to section 209, by striking 
        ``Section'' and inserting ``Sec.''; and
            (B) by striking the items relating to sections 213 through 
        216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security 
          Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.

        (2) Section 5315 of title 5, United States Code, is amended by 
    inserting after the item related to the Inspector General, 
    Department of Energy the following new item:
        ``Director, Office of Indian Energy Policy and Programs, 
    Department of Energy.''.

SEC. 503. INDIAN ENERGY.

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

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

    ``In this title:
        ``(1) The term `Director' means the Director of the Office of 
    Indian Energy Policy and Programs, Department of Energy.
        ``(2) The term `Indian land' means--
            ``(A) any land located within the boundaries of an Indian 
        reservation, pueblo, or rancheria;
            ``(B) any land not located within the boundaries of an 
        Indian reservation, pueblo, or rancheria, the title to which is 
        held--
                ``(i) in trust by the United States for the benefit of 
            an Indian tribe or an individual Indian;
                ``(ii) by an Indian tribe or an individual Indian, 
            subject to restriction against alienation under laws of the 
            United States; or
                ``(iii) by a dependent Indian community; and
            ``(C) land that is owned by an Indian tribe and was 
        conveyed by the United States to a Native Corporation pursuant 
        to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), or that was conveyed by the United States to a Native 
        Corporation in exchange for such land.
        ``(3) The term `Indian reservation' includes--
            ``(A) an Indian reservation in existence in any State or 
        States as of the date of enactment of this paragraph;
            ``(B) a public domain Indian allotment; and
            ``(C) a dependent Indian community located within the 
        borders of the United States, regardless of whether the 
        community is located--
                ``(i) on original or acquired territory of the 
            community; or
                ``(ii) within or outside the boundaries of any State or 
            States.
        ``(4)(A) The term `Indian tribe' has the meaning given the term 
    in section 4 of the Indian Self-Determination and Education 
    Assistance Act (25 U.S.C. 450b).
        ``(B) For the purpose of paragraph (12) and sections 
    2603(b)(1)(C) and 2604, the term `Indian tribe' does not include 
    any Native Corporation.
        ``(5) The term `integration of energy resources' means any 
    project or activity that promotes the location and operation of a 
    facility (including any pipeline, gathering system, transportation 
    system or facility, or electric transmission or distribution 
    facility) on or near Indian land to process, refine, generate 
    electricity from, or otherwise develop energy resources on, Indian 
    land.
        ``(6) The term `Native Corporation' has the meaning given the 
    term in section 3 of the Alaska Native Claims Settlement Act (43 
    U.S.C. 1602).
        ``(7) The term `organization' means a partnership, joint 
    venture, limited liability company, or other unincorporated 
    association or entity that is established to develop Indian energy 
    resources.
        ``(8) The term `Program' means the Indian energy resource 
    development program established under section 2602(a).
        ``(9) The term `Secretary' means the Secretary of the Interior.
        ``(10) The term `sequestration' means the long-term separation, 
    isolation, or removal of greenhouse gases from the atmosphere, 
    including through a biological or geologic method such as 
    reforestation or an underground reservoir.
        ``(11) The term `tribal energy resource development 
    organization' means an organization of two or more entities, at 
    least one of which is an Indian tribe, that has the written consent 
    of the governing bodies of all Indian tribes participating in the 
    organization to apply for a grant, loan, or other assistance under 
    section 2602.
        ``(12) The term `tribal land' means any land or interests in 
    land owned by any Indian tribe, title to which is held in trust by 
    the United States, or is subject to a restriction against 
    alienation under laws of the United States.

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

    ``(a) Department of the Interior Program.--
        ``(1) To assist Indian tribes in the development of energy 
    resources and further the goal of Indian self-determination, the 
    Secretary shall establish and implement an Indian energy resource 
    development program to assist consenting Indian tribes and tribal 
    energy resource development organizations in achieving the purposes 
    of this title.
        ``(2) In carrying out the Program, the Secretary shall--
            ``(A) provide development grants to Indian tribes and 
        tribal energy resource development organizations for use in 
        developing or obtaining the managerial and technical capacity 
        needed to develop energy resources on Indian land, and to 
        properly account for resulting energy production and revenues;
            ``(B) provide grants to Indian tribes and tribal energy 
        resource development organizations for use in carrying out 
        projects to promote the integration of energy resources, and to 
        process, use, or develop those energy resources, on Indian 
        land;
            ``(C) provide low-interest loans to Indian tribes and 
        tribal energy resource development organizations for use in the 
        promotion of energy resource development on Indian land and 
        integration of energy resources; and
            ``(D) provide grants and technical assistance to an 
        appropriate tribal environmental organization, as determined by 
        the Secretary, that represents multiple Indian tribes to 
        establish a national resource center to develop tribal capacity 
        to establish and carry out tribal environmental programs in 
        support of energy-related programs and activities under this 
        title, including--
                ``(i) training programs for tribal environmental 
            officials, program managers, and other governmental 
            representatives;
                ``(ii) the development of model environmental policies 
            and tribal laws, including tribal environmental review 
            codes, and the creation and maintenance of a clearinghouse 
            of best environmental management practices; and
                ``(iii) recommended standards for reviewing the 
            implementation of tribal environmental laws and policies 
            within tribal judicial or other tribal appeals systems.
        ``(3) There are authorized to be appropriated to carry out this 
    subsection such sums as are necessary for each of fiscal years 2006 
    through 2016.
    ``(b) Department of Energy Indian Energy Education Planning and 
Management Assistance Program.--
        ``(1) The Director shall establish programs to assist 
    consenting Indian tribes in meeting energy education, research and 
    development, planning, and management needs.
        ``(2) In carrying out this subsection, the Director may provide 
    grants, on a competitive basis, to an Indian tribe or tribal energy 
    resource development organization for use in carrying out--
            ``(A) energy, energy efficiency, and energy conservation 
        programs;
            ``(B) studies and other activities supporting tribal 
        acquisitions of energy supplies, services, and facilities, 
        including the creation of tribal utilities to assist in 
        securing electricity to promote electrification of homes and 
        businesses on Indian land;
            ``(C) planning, construction, development, operation, 
        maintenance, and improvement of tribal electrical generation, 
        transmission, and distribution facilities located on Indian 
        land; and
            ``(D) development, construction, and interconnection of 
        electric power transmission facilities located on Indian land 
        with other electric transmission facilities.
        ``(3)(A) The Director shall develop a program to support and 
    implement research projects that provide Indian tribes with 
    opportunities to participate in carbon sequestration practices on 
    Indian land, including--
            ``(i) geologic sequestration;
            ``(ii) forest sequestration;
            ``(iii) agricultural sequestration; and
            ``(iv) any other sequestration opportunities the Director 
        considers to be appropriate.
        ``(B) The activities carried out under subparagraph (A) shall 
    be--
            ``(i) coordinated with other carbon sequestration research 
        and development programs conducted by the Secretary of Energy;
            ``(ii) conducted to determine methods consistent with 
        existing standardized measurement protocols to account and 
        report the quantity of carbon dioxide or other greenhouse gases 
        sequestered in projects that may be implemented on Indian land; 
        and
            ``(iii) reviewed periodically to collect and distribute to 
        Indian tribes information on carbon sequestration practices 
        that will increase the sequestration of carbon without 
        threatening the social and economic well-being of Indian 
        tribes.
        ``(4)(A) The Director, in consultation with Indian tribes, may 
    develop a formula for providing grants under this subsection.
        ``(B) In providing a grant under this subsection, the Director 
    shall give priority to any application received from an Indian 
    tribe with inadequate electric service (as determined by the 
    Director).
        ``(C) In providing a grant under this subsection for an 
    activity to provide, or expand the provision of, electricity on 
    Indian land, the Director shall encourage cooperative arrangements 
    between Indian tribes and utilities that provide service to Indian 
    tribes, as the Director determines to be appropriate.
        ``(5) The Secretary of Energy may issue such regulations as the 
    Secretary determines to be necessary to carry out this subsection.
        ``(6) There is authorized to be appropriated to carry out this 
    subsection $20,000,000 for each of fiscal years 2006 through 2016.
    ``(c) Department of Energy Loan Guarantee Program.--
        ``(1) Subject to paragraphs (2) and (4), the Secretary of 
    Energy may provide loan guarantees (as defined in section 502 of 
    the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for an 
    amount equal to not more than 90 percent of the unpaid principal 
    and interest due on any loan made to an Indian tribe for energy 
    development.
        ``(2) In providing a loan guarantee under this subsection for 
    an activity to provide, or expand the provision of, electricity on 
    Indian land, the Secretary of Energy shall encourage cooperative 
    arrangements between Indian tribes and utilities that provide 
    service to Indian tribes, as the Secretary determines to be 
    appropriate.
        ``(3) A loan guarantee under this subsection shall be made by--
            ``(A) a financial institution subject to examination by the 
        Secretary of Energy; or
            ``(B) an Indian tribe, from funds of the Indian tribe.
        ``(4) The aggregate outstanding amount guaranteed by the 
    Secretary of Energy at any time under this subsection shall not 
    exceed $2,000,000,000.
        ``(5) The Secretary of Energy may issue such regulations as the 
    Secretary of Energy determines are necessary to carry out this 
    subsection.
        ``(6) There are authorized to be appropriated such sums as are 
    necessary to carry out this subsection, to remain available until 
    expended.
        ``(7) Not later than 1 year after the date of enactment of this 
    section, the Secretary of Energy shall submit to Congress a report 
    on the financing requirements of Indian tribes for energy 
    development on Indian land.
    ``(d) Preference.--
        ``(1) In purchasing electricity or any other energy product or 
    byproduct, a Federal agency or department may give preference to an 
    energy and resource production enterprise, partnership, consortium, 
    corporation, or other type of business organization the majority of 
    the interest in which is owned and controlled by 1 or more Indian 
    tribes.
        ``(2) In carrying out this subsection, a Federal agency or 
    department shall not--
            ``(A) pay more than the prevailing market price for an 
        energy product or byproduct; or
            ``(B) obtain less than prevailing market terms and 
        conditions.

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

    ``(a) Grants.--The Secretary may provide to Indian tribes, on an 
annual basis, grants for use in accordance with subsection (b).
    ``(b) Use of Funds.--Funds from a grant provided under this section 
may be used--
        ``(1)(A) by an Indian tribe for the development of a tribal 
    energy resource inventory or tribal energy resource on Indian land;
        ``(B) by an Indian tribe for the development of a feasibility 
    study or other report necessary to the development of energy 
    resources on Indian land;
        ``(C) by an Indian tribe (other than an Indian Tribe in the 
    State of Alaska, except the Metlakatla Indian Community) for--
            ``(i) the development and enforcement of tribal laws 
        (including regulations) relating to tribal energy resource 
        development; and
            ``(ii) the development of technical infrastructure to 
        protect the environment under applicable law; or
        ``(D) by a Native Corporation for the development and 
    implementation of corporate policies and the development of 
    technical infrastructure to protect the environment under 
    applicable law; and
        ``(2) by an Indian tribe for the training of employees that--
            ``(A) are engaged in the development of energy resources on 
        Indian land; or
            ``(B) are responsible for protecting the environment.
    ``(c) Other Assistance.--
        ``(1) In carrying out the obligations of the United States 
    under this title, the Secretary shall ensure, to the maximum extent 
    practicable and to the extent of available resources, that on the 
    request of an Indian tribe, the Indian tribe shall have available 
    scientific and technical information and expertise, for use in the 
    regulation, development, and management of energy resources of the 
    Indian tribe on Indian land.
        ``(2) The Secretary may carry out paragraph (1)--
            ``(A) directly, through the use of Federal officials; or
            ``(B) indirectly, by providing financial assistance to an 
        Indian tribe to secure independent assistance.

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

    ``(a) Leases and Business Agreements.--In accordance with this 
section--
        ``(1) an Indian tribe may, at the discretion of the Indian 
    tribe, enter into a lease or business agreement for the purpose of 
    energy resource development on tribal land, including a lease or 
    business agreement for--
            ``(A) exploration for, extraction of, processing of, or 
        other development of the energy mineral resources of the Indian 
        tribe located on tribal land; or
            ``(B) construction or operation of--
                ``(i) an electric generation, transmission, or 
            distribution facility located on tribal land; or
                ``(ii) a facility to process or refine energy resources 
            developed on tribal land; and
        ``(2) a lease or business agreement described in paragraph (1) 
    shall not require review by or the approval of the Secretary under 
    section 2103 of the Revised Statutes (25 U.S.C. 81), or any other 
    provision of law, if--
            ``(A) the lease or business agreement is executed pursuant 
        to a tribal energy resource agreement approved by the Secretary 
        under subsection (e);
            ``(B) the term of the lease or business agreement does not 
        exceed--
                ``(i) 30 years; or
                ``(ii) in the case of a lease for the production of oil 
            resources, gas resources, or both, 10 years and as long 
            thereafter as oil or gas is produced in paying quantities; 
            and
            ``(C) the Indian tribe has entered into a tribal energy 
        resource agreement with the Secretary, as described in 
        subsection (e), relating to the development of energy resources 
        on tribal land (including the periodic review and evaluation of 
        the activities of the Indian tribe under the agreement, to be 
        conducted pursuant to subsection (e)(2)(D)(i)).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission or 
Distribution Lines.--An Indian tribe may grant a right-of-way over 
tribal land for a pipeline or an electric transmission or distribution 
line without review or approval by the Secretary if--
        ``(1) the right-of-way is executed in accordance with a tribal 
    energy resource agreement approved by the Secretary under 
    subsection (e);
        ``(2) the term of the right-of-way does not exceed 30 years;
        ``(3) the pipeline or electric transmission or distribution 
    line serves--
            ``(A) an electric generation, transmission, or distribution 
        facility located on tribal land; or
            ``(B) a facility located on tribal land that processes or 
        refines energy resources developed on tribal land; and
        ``(4) the Indian tribe has entered into a tribal energy 
    resource agreement with the Secretary, as described in subsection 
    (e), relating to the development of energy resources on tribal land 
    (including the periodic review and evaluation of the activities of 
    the Indian tribe under an agreement described in subparagraphs (D) 
    and (E) of subsection (e)(2)).
    ``(c) Renewals.--A lease or business agreement entered into, or a 
right-of-way granted, by an Indian tribe under this section may be 
renewed at the discretion of the Indian tribe in accordance with this 
section.
    ``(d) Validity.--No lease, business agreement, or right-of-way 
relating to the development of tribal energy resources under this 
section shall be valid unless the lease, business agreement, or right-
of-way is authorized by a tribal energy resource agreement approved by 
the Secretary under subsection (e)(2).
    ``(e) Tribal Energy Resource Agreements.--
        ``(1) On the date on which regulations are promulgated under 
    paragraph (8), an Indian tribe may submit to the Secretary for 
    approval a tribal energy resource agreement governing leases, 
    business agreements, and rights-of-way under this section.
        ``(2)(A) Not later than 270 days after the date on which the 
    Secretary receives a tribal energy resource agreement from an 
    Indian tribe under paragraph (1), or not later than 60 days after 
    the Secretary receives a revised tribal energy resource agreement 
    from an Indian tribe under paragraph (4)(C) (or a later date, as 
    agreed to by the Secretary and the Indian tribe), the Secretary 
    shall approve or disapprove the tribal energy resource agreement.
        ``(B) The Secretary shall approve a tribal energy resource 
    agreement submitted under paragraph (1) if--
            ``(i) the Secretary determines that the Indian tribe has 
        demonstrated that the Indian tribe has sufficient capacity to 
        regulate the development of energy resources of the Indian 
        tribe;
            ``(ii) the tribal energy resource agreement includes 
        provisions required under subparagraph (D); and
            ``(iii) the tribal energy resource agreement includes 
        provisions that, with respect to a lease, business agreement, 
        or right-of-way under this section--
                ``(I) ensure the acquisition of necessary information 
            from the applicant for the lease, business agreement, or 
            right-of-way;
                ``(II) address the term of the lease or business 
            agreement or the term of conveyance of the right-of-way;
                ``(III) address amendments and renewals;
                ``(IV) address the economic return to the Indian tribe 
            under leases, business agreements, and rights-of-way;
                ``(V) address technical or other relevant requirements;
                ``(VI) establish requirements for environmental review 
            in accordance with subparagraph (C);
                ``(VII) ensure compliance with all applicable 
            environmental laws, including a requirement that each 
            lease, business agreement, and right-of-way state that the 
            lessee, operator, or right-of-way grantee shall comply with 
            all such laws;
                ``(VIII) identify final approval authority;
                ``(IX) provide for public notification of final 
            approvals;
                ``(X) establish a process for consultation with any 
            affected States regarding off-reservation impacts, if any, 
            identified under subparagraph (C)(i);
                ``(XI) describe the remedies for breach of the lease, 
            business agreement, or right-of-way;
                ``(XII) require each lease, business agreement, and 
            right-of-way to include a statement that, if any of its 
            provisions violates an express term or requirement of the 
            tribal energy resource agreement pursuant to which the 
            lease, business agreement, or right-of-way was executed--

                    ``(aa) the provision shall be null and void; and
                    ``(bb) if the Secretary determines the provision to 
                be material, the Secretary may suspend or rescind the 
                lease, business agreement, or right-of-way or take 
                other appropriate action that the Secretary determines 
                to be in the best interest of the Indian tribe;

                ``(XIII) require each lease, business agreement, and 
            right-of-way to provide that it will become effective on 
            the date on which a copy of the executed lease, business 
            agreement, or right-of-way is delivered to the Secretary in 
            accordance with regulations promulgated under paragraph 
            (8);
                ``(XIV) include citations to tribal laws, regulations, 
            or procedures, if any, that set out tribal remedies that 
            must be exhausted before a petition may be submitted to the 
            Secretary under paragraph (7)(B);
                ``(XV) specify the financial assistance, if any, to be 
            provided by the Secretary to the Indian tribe to assist in 
            implementation of the tribal energy resource agreement, 
            including environmental review of individual projects; and
                ``(XVI) in accordance with the regulations promulgated 
            by the Secretary under paragraph (8), require that the 
            Indian tribe, as soon as practicable after receipt of a 
            notice by the Indian tribe, give written notice to the 
            Secretary of--

                    ``(aa) any breach or other violation by another 
                party of any provision in a lease, business agreement, 
                or right-of-way entered into under the tribal energy 
                resource agreement; and
                    ``(bb) any activity or occurrence under a lease, 
                business agreement, or right-of-way that constitutes a 
                violation of Federal or tribal environmental laws.

            ``(C) Tribal energy resource agreements submitted under 
        paragraph (1) shall establish, and include provisions to ensure 
        compliance with, an environmental review process that, with 
        respect to a lease, business agreement, or right-of-way under 
        this section, provides for, at a minimum--
                ``(i) the identification and evaluation of all 
            significant environmental effects (as compared to a no-
            action alternative), including effects on cultural 
            resources;
                ``(ii) the identification of proposed mitigation 
            measures, if any, and incorporation of appropriate 
            mitigation measures into the lease, business agreement, or 
            right-of-way;
                ``(iii) a process for ensuring that--

                    ``(I) the public is informed of, and has an 
                opportunity to comment on, the environmental impacts of 
                the proposed action; and
                    ``(II) responses to relevant and substantive 
                comments are provided, before tribal approval of the 
                lease, business agreement, or right-of-way;

                ``(iv) sufficient administrative support and technical 
            capability to carry out the environmental review process; 
            and
                ``(v) oversight by the Indian tribe of energy 
            development activities by any other party under any lease, 
            business agreement, or right-of-way entered into pursuant 
            to the tribal energy resource agreement, to determine 
            whether the activities are in compliance with the tribal 
            energy resource agreement and applicable Federal 
            environmental laws.
            ``(D) A tribal energy resource agreement between the 
        Secretary and an Indian tribe under this subsection shall 
        include--
                ``(i) provisions requiring the Secretary to conduct a 
            periodic review and evaluation to monitor the performance 
            of the activities of the Indian tribe associated with the 
            development of energy resources under the tribal energy 
            resource agreement; and
                ``(ii) if a periodic review and evaluation, or an 
            investigation, by the Secretary of any breach or violation 
            described in a notice provided by the Indian tribe to the 
            Secretary in accordance with subparagraph (B)(iii)(XVI), 
            results in a finding by the Secretary of imminent jeopardy 
            to a physical trust asset arising from a violation of the 
            tribal energy resource agreement or applicable Federal 
            laws, provisions authorizing the Secretary to take actions 
            determined by the Secretary to be necessary to protect the 
            asset, including reassumption of responsibility for 
            activities associated with the development of energy 
            resources on tribal land until the violation and any 
            condition that caused the jeopardy are corrected.
            ``(E) Periodic review and evaluation under subparagraph (D) 
        shall be conducted on an annual basis, except that, after the 
        third annual review and evaluation, the Secretary and the 
        Indian tribe may mutually agree to amend the tribal energy 
        resource agreement to authorize the review and evaluation under 
        subparagraph (D) to be conducted once every 2 years.
        ``(3) The Secretary shall provide notice and opportunity for 
    public comment on tribal energy resource agreements submitted for 
    approval under paragraph (1). The Secretary's review of a tribal 
    energy resource agreement shall be limited to activities specified 
    by the provisions of the tribal energy resource agreement.
        ``(4) If the Secretary disapproves a tribal energy resource 
    agreement submitted by an Indian tribe under paragraph (1), the 
    Secretary shall, not later than 10 days after the date of 
    disapproval--
            ``(A) notify the Indian tribe in writing of the basis for 
        the disapproval;
            ``(B) identify what changes or other actions are required 
        to address the concerns of the Secretary; and
            ``(C) provide the Indian tribe with an opportunity to 
        revise and resubmit the tribal energy resource agreement.
        ``(5) If an Indian tribe executes a lease or business 
    agreement, or grants a right-of-way, in accordance with a tribal 
    energy resource agreement approved under this subsection, the 
    Indian tribe shall, in accordance with the process and requirements 
    under regulations promulgated under paragraph (8), provide to the 
    Secretary--
            ``(A) a copy of the lease, business agreement, or right-of-
        way document (including all amendments to and renewals of the 
        document); and
            ``(B) in the case of a tribal energy resource agreement or 
        a lease, business agreement, or right-of-way that permits 
        payments to be made directly to the Indian tribe, information 
        and documentation of those payments sufficient to enable the 
        Secretary to discharge the trust responsibility of the United 
        States to enforce the terms of, and protect the rights of the 
        Indian tribe under, the lease, business agreement, or right-of-
        way.
        ``(6)(A) In carrying out this section, the Secretary shall--
            ``(i) act in accordance with the trust responsibility of 
        the United States relating to mineral and other trust 
        resources; and
            ``(ii) act in good faith and in the best interests of the 
        Indian tribes.
        ``(B) Subject to the provisions of subsections (a)(2), (b), and 
    (c) waiving the requirement of Secretarial approval of leases, 
    business agreements, and rights-of-way executed pursuant to tribal 
    energy resource agreements approved under this section, and the 
    provisions of subparagraph (D), nothing in this section shall 
    absolve the United States from any responsibility to Indians or 
    Indian tribes, including, but not limited to, those which derive 
    from the trust relationship or from any treaties, statutes, and 
    other laws of the United States, Executive orders, or agreements 
    between the United States and any Indian tribe.
        ``(C) The Secretary shall continue to fulfill the trust 
    obligation of the United States to ensure that the rights and 
    interests of an Indian tribe are protected if--
            ``(i) any other party to a lease, business agreement, or 
        right-of-way violates any applicable Federal law or the terms 
        of any lease, business agreement, or right-of-way under this 
        section; or
            ``(ii) any provision in a lease, business agreement, or 
        right-of-way violates the tribal energy resource agreement 
        pursuant to which the lease, business agreement, or right-of-
        way was executed.
        ``(D)(i) In this subparagraph, the term `negotiated term' means 
    any term or provision that is negotiated by an Indian tribe and any 
    other party to a lease, business agreement, or right-of-way entered 
    into pursuant to an approved tribal energy resource agreement.
        ``(ii) Notwithstanding subparagraph (B), the United States 
    shall not be liable to any party (including any Indian tribe) for 
    any negotiated term of, or any loss resulting from the negotiated 
    terms of, a lease, business agreement, or right-of-way executed 
    pursuant to and in accordance with a tribal energy resource 
    agreement approved by the Secretary under paragraph (2).
        ``(7)(A) In this paragraph, the term `interested party' means 
    any person (including an entity) that has demonstrated that an 
    interest of the person has sustained, or will sustain, an adverse 
    environmental impact as a result of the failure of an Indian tribe 
    to comply with a tribal energy resource agreement of the Indian 
    tribe approved by the Secretary under paragraph (2).
        ``(B) After exhaustion of any tribal remedy, and in accordance 
    with regulations promulgated by the Secretary under paragraph (8), 
    an interested party may submit to the Secretary a petition to 
    review the compliance by an Indian tribe with a tribal energy 
    resource agreement of the Indian tribe approved by the Secretary 
    under paragraph (2).
        ``(C)(i) Not later than 20 days after the date on which the 
    Secretary receives a petition under subparagraph (B), the Secretary 
    shall--
            ``(I) provide to the Indian tribe a copy of the petition; 
        and
            ``(II) consult with the Indian tribe regarding any 
        noncompliance alleged in the petition.
        ``(ii) Not later than 45 days after the date on which a 
    consultation under clause (i)(II) takes place, the Indian tribe 
    shall respond to any claim made in a petition under subparagraph 
    (B).
        ``(iii) The Secretary shall act in accordance with 
    subparagraphs (D) and (E) only if the Indian tribe--
            ``(I) denies, or fails to respond to, each claim made in 
        the petition within the period described in clause (ii); or
            ``(II) fails, refuses, or is unable to cure or otherwise 
        resolve each claim made in the petition within a reasonable 
        period, as determined by the Secretary, after the expiration of 
        the period described in clause (ii).
        ``(D)(i) Not later than 120 days after the date on which the 
    Secretary receives a petition under subparagraph (B), the Secretary 
    shall determine whether the Indian tribe is not in compliance with 
    the tribal energy resource agreement.
        ``(ii) The Secretary may adopt procedures under paragraph (8) 
    authorizing an extension of time, not to exceed 120 days, for 
    making the determination under clause (i) in any case in which the 
    Secretary determines that additional time is necessary to evaluate 
    the allegations of the petition.
        ``(iii) Subject to subparagraph (E), if the Secretary 
    determines that the Indian tribe is not in compliance with the 
    tribal energy resource agreement, the Secretary shall take such 
    action as the Secretary determines to be necessary to ensure 
    compliance with the tribal energy resource agreement, including--
            ``(I) temporarily suspending any activity under a lease, 
        business agreement, or right-of-way under this section until 
        the Indian tribe is in compliance with the approved tribal 
        energy resource agreement; or
            ``(II) rescinding approval of all or part of the tribal 
        energy resource agreement, and if all of the agreement is 
        rescinded, reassuming the responsibility for approval of any 
        future leases, business agreements, or rights-of-way described 
        in subsection (a) or (b).
        ``(E) Before taking an action described in subparagraph 
    (D)(iii), the Secretary shall--
            ``(i) make a written determination that describes the 
        manner in which the tribal energy resource agreement has been 
        violated;
            ``(ii) provide the Indian tribe with a written notice of 
        the violations together with the written determination; and
            ``(iii) before taking any action described in subparagraph 
        (D)(iii) or seeking any other remedy, provide the Indian tribe 
        with a hearing and a reasonable opportunity to attain 
        compliance with the tribal energy resource agreement.
        ``(F) An Indian tribe described in subparagraph (E) shall 
    retain all rights to appeal under any regulation promulgated by the 
    Secretary.
        ``(8) Not later than 1 year after the date of enactment of the 
    Energy Policy Act of 2005, the Secretary shall promulgate 
    regulations that implement this subsection, including--
            ``(A) criteria to be used in determining the capacity of an 
        Indian tribe under paragraph (2)(B)(i), including the 
        experience of the Indian tribe in managing natural resources 
        and financial and administrative resources available for use by 
        the Indian tribe in implementing the approved tribal energy 
        resource agreement of the Indian tribe;
            ``(B) a process and requirements in accordance with which 
        an Indian tribe may--
                ``(i) voluntarily rescind a tribal energy resource 
            agreement approved by the Secretary under this subsection; 
            and
                ``(ii) return to the Secretary the responsibility to 
            approve any future lease, business agreement, or right-of-
            way under this subsection;
            ``(C) provisions establishing the scope of, and procedures 
        for, the periodic review and evaluation described in 
        subparagraphs (D) and (E) of paragraph (2), including 
        provisions for review of transactions, reports, site 
        inspections, and any other review activities the Secretary 
        determines to be appropriate; and
            ``(D) provisions describing final agency actions after 
        exhaustion of administrative appeals from determinations of the 
        Secretary under paragraph (7).
    ``(f) No Effect on Other Law.--Nothing in this section affects the 
application of--
        ``(1) any Federal environmental law;
        ``(2) the Surface Mining Control and Reclamation Act of 1977 
    (30 U.S.C. 1201 et seq.); or
        ``(3) except as otherwise provided in this title, the Indian 
    Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary for each of 
fiscal years 2006 through 2016 to carry out this section and to make 
grants or provide other appropriate assistance to Indian tribes to 
assist the Indian tribes in developing and implementing tribal energy 
resource agreements in accordance with this section.

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
        ``(1) The term `Administrator' means the Administrator of the 
    Bonneville Power Administration and the Administrator of the 
    Western Area Power Administration.
        ``(2) The term `power marketing administration' means--
            ``(A) the Bonneville Power Administration;
            ``(B) the Western Area Power Administration; and
            ``(C) any other power administration the power allocation 
        of which is used by or for the benefit of an Indian tribe 
        located in the service area of the administration.
    ``(b) Encouragement of Indian Tribal Energy Development.--Each 
Administrator shall encourage Indian tribal energy development by 
taking such actions as the Administrators determine to be appropriate, 
including administration of programs of the power marketing 
administration, in accordance with this section.
    ``(c) Action by Administrators.--In carrying out this section, in 
accordance with laws in existence on the date of enactment of the 
Energy Policy Act of 2005--
        ``(1) each Administrator shall consider the unique relationship 
    that exists between the United States and Indian tribes;
        ``(2) power allocations from the Western Area Power 
    Administration to Indian tribes may be used to meet firming and 
    reserve needs of Indian-owned energy projects on Indian land;
        ``(3) the Administrator of the Western Area Power 
    Administration may purchase non-federally generated power from 
    Indian tribes to meet the firming and reserve requirements of the 
    Western Area Power Administration; and
        ``(4) each Administrator shall not--
            ``(A) pay more than the prevailing market price for an 
        energy product; or
            ``(B) obtain less than prevailing market terms and 
        conditions.
    ``(d) Assistance for Transmission System Use.--
        ``(1) An Administrator may provide technical assistance to 
    Indian tribes seeking to use the high-voltage transmission system 
    for delivery of electric power.
        ``(2) The costs of technical assistance provided under 
    paragraph (1) shall be funded--
            ``(A) by the Secretary of Energy using nonreimbursable 
        funds appropriated for that purpose; or
            ``(B) by any appropriate Indian tribe.
    ``(e) Power Allocation Study.--Not later than 2 years after the 
date of enactment of the Energy Policy Act of 2005, the Secretary of 
Energy shall submit to Congress a report that--
        ``(1) describes the use by Indian tribes of Federal power 
    allocations of the power marketing administration (or power sold by 
    the Southwestern Power Administration) to or for the benefit of 
    Indian tribes in a service area of the power marketing 
    administration; and
        ``(2) identifies--
            ``(A) the quantity of power allocated to, or used for the 
        benefit of, Indian tribes by the Western Area Power 
        Administration;
            ``(B) the quantity of power sold to Indian tribes by any 
        other power marketing administration; and
            ``(C) barriers that impede tribal access to and use of 
        Federal power, including an assessment of opportunities to 
        remove those barriers and improve the ability of power 
        marketing administrations to deliver Federal power.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $750,000, non-reimbursable, to 
remain available until expended.

``SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY.

    ``(a) Study.--The Secretary of Energy, in coordination with the 
Secretary of the Army and the Secretary, shall conduct a study of the 
cost and feasibility of developing a demonstration project that uses 
wind energy generated by Indian tribes and hydropower generated by the 
Army Corps of Engineers on the Missouri River to supply firming power 
to the Western Area Power Administration.
    ``(b) Scope of Study.--The study shall--
        ``(1) determine the economic and engineering feasibility of 
    blending wind energy and hydropower generated from the Missouri 
    River dams operated by the Army Corps of Engineers, including an 
    assessment of the costs and benefits of blending wind energy and 
    hydropower compared to current sources used for firming power to 
    the Western Area Power Administration;
        ``(2) review historical and projected requirements for, 
    patterns of availability and use of, and reasons for historical 
    patterns concerning the availability of firming power;
        ``(3) assess the wind energy resource potential on tribal land 
    and projected cost savings through a blend of wind and hydropower 
    over a 30-year period;
        ``(4) determine seasonal capacity needs and associated 
    transmission upgrades for integration of tribal wind generation and 
    identify costs associated with these activities;
        ``(5) include an independent tribal engineer and a Western Area 
    Power Administration customer representative as study team members; 
    and
        ``(6) incorporate, to the extent appropriate, the results of 
    the Dakotas Wind Transmission study prepared by the Western Area 
    Power Administration.
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Energy Policy Act of 2005, the Secretary of Energy, the Secretary, 
and the Secretary of the Army shall submit to Congress a report that 
describes the results of the study, including--
        ``(1) an analysis and comparison of the potential energy cost 
    or benefits to the customers of the Western Area Power 
    Administration through the use of combined wind and hydropower;
        ``(2) an economic and engineering evaluation of whether a 
    combined wind and hydropower system can reduce reservoir 
    fluctuation, enhance efficient and reliable energy production, and 
    provide Missouri River management flexibility;
        ``(3) if found feasible, recommendations for a demonstration 
    project to be carried out by the Western Area Power Administration, 
    in partnership with an Indian tribal government or tribal energy 
    resource development organization, and Western Area Power 
    Administration customers to demonstrate the feasibility and 
    potential of using wind energy produced on Indian land to supply 
    firming energy to the Western Area Power Administration; and
        ``(4) an identification of--
            ``(A) the economic and environmental costs of, or benefits 
        to be realized through, a Federal-tribal-customer partnership; 
        and
            ``(B) the manner in which a Federal-tribal-customer 
        partnership could contribute to the energy security of the 
        United States.
    ``(d) Funding.--
        ``(1) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this section $1,000,000, to remain 
    available until expended.
        ``(2) Nonreimbursability.--Costs incurred by the Secretary in 
    carrying out this section shall be nonreimbursable.''.
    (b) Conforming Amendments.--The table of contents for the Energy 
Policy Act of 1992 is amended by striking the items relating to title 
XXVI and inserting the following:

``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving 
          energy development or transmission.
``Sec. 2605. Federal Power Marketing Administrations.
``Sec. 2606. Wind and hydropower feasibility study.''.

SEC. 504. CONSULTATION WITH INDIAN TRIBES.

    In carrying out this title and the amendments made by this title, 
the Secretary and the Secretary of the Interior shall, as appropriate 
and to the maximum extent practicable, involve and consult with Indian 
tribes.

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.

    (a) Transmission Line Project.--The Dine Power Authority, an 
enterprise of the Navajo Nation, shall be eligible to receive grants 
and other assistance under section 217 of the Department of Energy 
Organization Act, as added by section 502, and section 2602 of the 
Energy Policy Act of 1992, as amended by this Act, for activities 
associated with the development of a transmission line from the Four 
Corners Area to southern Nevada, including related power generation 
opportunities.
    (b) Navajo Electrification.--Section 602 of Public Law 106-511 (114 
Stat. 2376) is amended--
        (1) in subsection (a)--
            (A) in the first sentence, by striking ``5-year'' and 
        inserting ``10-year''; and
            (B) in the third sentence, by striking ``2006'' and 
        inserting ``2011''; and
        (2) in the first sentence of subsection (e) by striking 
    ``2006'' and inserting ``2011''.

SEC. 506. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

    (a) In General.--The Secretary of Housing and Urban Development 
shall promote energy conservation in housing that is located on Indian 
land and assisted with Federal resources through--
        (1) the use of energy-efficient technologies and innovations 
    (including the procurement of energy-efficient refrigerators and 
    other appliances);
        (2) the promotion of shared savings contracts; and
        (3) the use and implementation of such other similar 
    technologies and innovations as the Secretary of Housing and Urban 
    Development considers to be appropriate.
    (b) Amendment.--Section 202(2) of the Native American Housing and 
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by 
inserting ``improvement to achieve greater energy efficiency,'' after 
``planning,''.

                       TITLE VI--NUCLEAR MATTERS
               Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act 
of 2005''.

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
        (1) in the subsection heading, by striking ``Licenses'' and 
    inserting ``Licensees''; and
        (2) by striking ``December 31, 2003'' each place it appears and 
    inserting ``December 31, 2025''.
    (b) Indemnification of Department Contractors.--Section 170 
d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2025''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended 
by striking ``August 1, 2002'' each place it appears and inserting 
``December 31, 2025''.

SEC. 603. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended--
        (1) in the second proviso of the third sentence of subsection 
    b.(1)--
            (A) by striking ``$63,000,000'' and inserting 
        ``$95,800,000''; and
            (B) by striking ``$10,000,000 in any 1 year'' and inserting 
        ``$15,000,000 in any 1 year (subject to adjustment for 
        inflation under subsection t.)''; and
        (2) in subsection t.(1)--
            (A) by inserting ``total and annual'' after ``amount of the 
        maximum'';
            (B) by striking ``the date of the enactment of the Price-
        Anderson Amendments Act of 1988'' and inserting ``August 20, 
        2003''; and
            (C) in subparagraph (A), by striking ``such date of 
        enactment'' and inserting ``August 20, 2003''.

SEC. 604. DEPARTMENT LIABILITY LIMIT.

    (a) Indemnification of Department Contractors.--Section 170 d. of 
the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by 
striking paragraph (2) and inserting the following:
    ``(2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
        ``(A) may require the contractor to provide and maintain 
    financial protection of such a type and in such amounts as the 
    Secretary shall determine to be appropriate to cover public 
    liability arising out of or in connection with the contractual 
    activity; and
        ``(B) shall indemnify the persons indemnified against such 
    liability above the amount of the financial protection required, in 
    the amount of $10,000,000,000 (subject to adjustment for inflation 
    under subsection t.), in the aggregate, for all persons indemnified 
    in connection with the contract and for each nuclear incident, 
    including such legal costs of the contractor as are approved by the 
    Secretary.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph 
(3) and inserting the following--
    ``(3) All agreements of indemnification under which the Department 
of Energy (or its predecessor agencies) may be required to indemnify 
any person under this section shall be deemed to be amended, on the 
date of enactment of the Price-Anderson Amendments Act of 2005, to 
reflect the amount of indemnity for public liability and any applicable 
financial protection required of the contractor under this 
subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
        (1) by striking ``the maximum amount of financial protection 
    required under subsection b. or''; and
        (2) by striking ``paragraph (3) of subsection d., whichever 
    amount is more'' and inserting ``paragraph (2) of subsection d.''.

SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.

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

SEC. 606. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``December 31, 
2021''.

SEC. 607. INFLATION ADJUSTMENT.

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

SEC. 608. TREATMENT OF MODULAR REACTORS.

    Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) 
is amended by adding at the end the following:
    ``(5)(A) For purposes of this section only, the Commission shall 
consider a combination of facilities described in subparagraph (B) to 
be a single facility having a rated capacity of 100,000 electrical 
kilowatts or more.
    ``(B) A combination of facilities referred to in subparagraph (A) 
is two or more facilities located at a single site, each of which has a 
rated capacity of 100,000 electrical kilowatts or more but not more 
than 300,000 electrical kilowatts, with a combined rated capacity of 
not more than 1,300,000 electrical kilowatts.''.

SEC. 609. APPLICABILITY.

    The amendments made by sections 603, 604, and 605 do not apply to a 
nuclear incident that occurs before the date of the enactment of this 
Act.

SEC. 610. CIVIL PENALTIES.

    (a) Repeal of Automatic Remission.--Section 234A b.(2) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by 
striking the last sentence.
    (b) Limitation for Not-for-Profit Institutions.--Subsection d. of 
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is 
amended to read as follows:
    ``d.(1) Notwithstanding subsection a., in the case of any not-for-
profit contractor, subcontractor, or supplier, the total amount of 
civil penalties paid under subsection a. may not exceed the total 
amount of fees paid within any 1-year period (as determined by the 
Secretary) under the contract under which the violation occurs.
    ``(2) For purposes of this section, the term `not-for-profit' means 
that no part of the net earnings of the contractor, subcontractor, or 
supplier inures to the benefit of any natural person or for-profit 
artificial person.''.
    (c) Effective Date.--The amendments made by this section shall not 
apply to any violation of the Atomic Energy Act of 1954 (42 U.S.C. 2011 
et seq.) occurring under a contract entered into before the date of 
enactment of this section.

                  Subtitle B--General Nuclear Matters

SEC. 621. LICENSES.

    Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) 
is amended by inserting ``from the authorization to commence 
operations'' after ``forty years''.

SEC. 622. NUCLEAR REGULATORY COMMISSION SCHOLARSHIP AND FELLOWSHIP 
              PROGRAM.

    (a) In General.--Chapter 19 of the Atomic Energy Act of 1954 is 
amended by inserting after section 242 (42 U.S.C. 2015a) the following:

``SEC. 243. SCHOLARSHIP AND FELLOWSHIP PROGRAM.

    ``a. Scholarship Program.--To enable students to study, for at 
least 1 academic semester or equivalent term, science, engineering, or 
another field of study that the Commission determines is in a critical 
skill area related to the regulatory mission of the Commission, the 
Commission may carry out a program to--
        ``(1) award scholarships to undergraduate students who--
            ``(A) are United States citizens; and
            ``(B) enter into an agreement under subsection c. to be 
        employed by the Commission in the area of study for which the 
        scholarship is awarded.
    ``b. Fellowship Program.--To enable students to pursue education in 
science, engineering, or another field of study that the Commission 
determines is in a critical skill area related to its regulatory 
mission, in a graduate or professional degree program offered by an 
institution of higher education in the United States, the Commission 
may carry out a program to--
        ``(1) award fellowships to graduate students who--
            ``(A) are United States citizens; and
            ``(B) enter into an agreement under subsection c. to be 
        employed by the Commission in the area of study for which the 
        fellowship is awarded.
    ``c. Requirements.--
        ``(1) In general.--As a condition of receiving a scholarship or 
    fellowship under subsection a. or b., a recipient of the 
    scholarship or fellowship shall enter into an agreement with the 
    Commission under which, in return for the assistance, the recipient 
    shall--
            ``(A) maintain satisfactory academic progress in the 
        studies of the recipient, as determined by criteria established 
        by the Commission;
            ``(B) agree that failure to maintain satisfactory academic 
        progress shall constitute grounds on which the Commission may 
        terminate the assistance;
            ``(C) on completion of the academic course of study in 
        connection with which the assistance was provided, and in 
        accordance with criteria established by the Commission, engage 
        in employment by the Commission for a period specified by the 
        Commission, that shall be not less than 1 time and not more 
        than 3 times the period for which the assistance was provided; 
        and
            ``(D) if the recipient fails to meet the requirements of 
        subparagraph (A), (B), or (C), reimburse the United States 
        Government for--
                ``(i) the entire amount of the assistance provided the 
            recipient under the scholarship or fellowship; and
                ``(ii) interest at a rate determined by the Commission.
        ``(2) Waiver or suspension.--The Commission may establish 
    criteria for the partial or total waiver or suspension of any 
    obligation of service or payment incurred by a recipient of a 
    scholarship or fellowship under this section.
    ``d. Competitive Process.--Recipients of scholarships or 
fellowships under this section shall be selected through a competitive 
process primarily on the basis of academic merit and such other 
criteria as the Commission may establish, 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, 1885b).
    ``e. Direct Appointment.--The Commission may appoint directly, with 
no further competition, public notice, or consideration of any other 
potential candidate, an individual who has--
        ``(1) received a scholarship or fellowship awarded by the 
    Commission under this section; and
        ``(2) completed the academic program for which the scholarship 
    or fellowship was awarded.''.
    (b) Conforming Amendment.--The table of sections of the Atomic 
Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by adding after 
the item relating to section 242 the following:

``Sec. 243. Scholarship and fellowship program.''.

SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.

    Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) 
is amended--
        (1) by striking ``for or is issued'' and all that follows 
    through ``1702'' and inserting ``to the Commission for, or is 
    issued by the Commission, a license or certificate'';
        (2) by striking ``483a'' and inserting ``9701''; and
        (3) by striking ``, of applicants for, or holders of, such 
    licenses or certificates''.

SEC. 624. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
              RETIREES.

    (a) In General.--Chapter 14 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201 et seq.) is amended by adding at the end the following:

``SEC. 170C. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL 
              RETIREES.

    ``a. In General.--The Commission may waive the application of 
section 8344 or 8468 of title 5, United States Code, on a case-by-case 
basis for employment of an annuitant--
        ``(1) in a position of the Commission for which there is 
    exceptional difficulty in recruiting or retaining a qualified 
    employee; or
        ``(2) when a temporary emergency hiring need exists.
    ``b. Procedures.--The Commission shall prescribe procedures for the 
exercise of authority under this section, including--
        ``(1) criteria for any exercise of authority; and
        ``(2) procedures for a delegation of authority.
    ``c. Effect of Waiver.--An employee as to whom a waiver under this 
section is in effect shall not be considered an employee for purposes 
of subchapter II of chapter 83, or chapter 84, of title 5, United 
States Code.''.
    (b) Conforming Amendment.--The table of sections of the Atomic 
Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by adding at the 
end of the items relating to chapter 14 the following:

``Sec. 170C. Elimination of pension offset for certain rehired Federal 
          retirees.''.

SEC. 625. ANTITRUST REVIEW.

    Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2135(c)) 
is amended by adding at the end the following:
    ``(9) Applicability.--This subsection does not apply to an 
application for a license to construct or operate a utilization 
facility or production facility under section 103 or 104 b. that is 
filed on or after the date of enactment of this paragraph.''.

SEC. 626. DECOMMISSIONING.

    Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(i)) 
is amended--
        (1) by striking ``and (3)'' and inserting ``(3)''; and
        (2) by inserting before the semicolon at the end the following: 
    ``, and (4) to ensure that sufficient funds will be available for 
    the decommissioning of any production or utilization facility 
    licensed under section 103 or 104 b., including standards and 
    restrictions governing the control, maintenance, use, and 
    disbursement by any former licensee under this Act that has control 
    over any fund for the decommissioning of the facility''.

SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    Title II of the Energy Reorganization Act of 1974 (42 U.S.C. 5841 
et seq.) is amended by adding at the end the following new section:


                 ``LIMITATION ON LEGAL FEE REIMBURSEMENT

    ``Sec. 212. The Department of Energy shall not, except as required 
under a contract entered into before the date of enactment of this 
section, reimburse any contractor or subcontractor of the Department 
for any legal fees or expenses incurred with respect to a complaint 
subsequent to--
        ``(1) an adverse determination on the merits with respect to 
    such complaint against the contractor or subcontractor by the 
    Director of the Department of Energy's Office of Hearings and 
    Appeals pursuant to part 708 of title 10, Code of Federal 
    Regulations, or by a Department of Labor Administrative Law Judge 
    pursuant to section 211 of this Act; or
        ``(2) an adverse final judgment by any State or Federal court 
    with respect to such complaint against the contractor or 
    subcontractor for wrongful termination or retaliation due to the 
    making of disclosures protected under chapter 12 of title 5, United 
    States Code, section 211 of this Act, or any comparable State law,
unless the adverse determination or final judgment is reversed upon 
further administrative or judicial review.''.

SEC. 628. DECOMMISSIONING PILOT PROGRAM.

    (a) Pilot Program.--The Secretary shall establish a decommissioning 
pilot program under which the Secretary shall decommission and 
decontaminate the sodium-cooled fast breeder experimental test-site 
reactor located in northwest Arkansas, in accordance with the 
decommissioning activities contained in the report of the Department 
relating to the reactor, dated August 31, 1998.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $16,000,000.

SEC. 629. WHISTLEBLOWER PROTECTION.

    (a) Definition of Employer.--Section 211(a)(2) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is amended--
        (1) in subparagraph (C), by striking ``and'' at the end;
        (2) in subparagraph (D), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
            ``(E) a contractor or subcontractor of the Commission;
            ``(F) the Commission; and
            ``(G) the Department of Energy.''.
    (b) De Novo Review.--Subsection (b) of such section 211 is amended 
by adding at the end the following new paragraph:
        ``(4) If the Secretary has not issued a final decision within 1 
    year after the filing of a complaint under paragraph (1), and there 
    is no showing that such delay is due to the bad faith of the person 
    seeking relief under this paragraph, such person may bring an 
    action at law or equity for de novo review in the appropriate 
    district court of the United States, which shall have jurisdiction 
    over such an action without regard to the amount in controversy.''.

SEC. 630. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) is 
amended--
        (1) in subsection a., by striking ``a. The Commission'' and 
    inserting ``a. In General.--Except as provided in subsection b., 
    the Commission'';
        (2) by redesignating subsection b. as subsection c.; and
        (3) by inserting after subsection a. the following:
    ``b. Medical Isotope Production.--
        ``(1) Definitions.--In this subsection:
            ``(A) Highly enriched uranium.--The term `highly enriched 
        uranium' means uranium enriched to include concentration of U-
        235 above 20 percent.
            ``(B) Medical isotope.--The term `medical isotope' includes 
        Molybdenum 99, Iodine 131, Xenon 133, and other radioactive 
        materials used to produce a radiopharmaceutical for diagnostic, 
        therapeutic procedures or for research and development.
            ``(C) Radiopharmaceutical.--The term `radiopharmaceutical' 
        means a radioactive isotope that--
                ``(i) contains byproduct material combined with 
            chemical or biological material; and
                ``(ii) is designed to accumulate temporarily in a part 
            of the body for therapeutic purposes or for enabling the 
            production of a useful image for use in a diagnosis of a 
            medical condition.
            ``(D) Recipient country.--The term `recipient country' 
        means Canada, Belgium, France, Germany, and the Netherlands.
        ``(2) Licenses.--The Commission may issue a license authorizing 
    the export (including shipment to and use at intermediate and 
    ultimate consignees specified in the license) to a recipient 
    country of highly enriched uranium for medical isotope production 
    if, in addition to any other requirements of this Act (except 
    subsection a.), the Commission determines that--
            ``(A) a recipient country that supplies an assurance letter 
        to the United States Government in connection with the 
        consideration by the Commission of the export license 
        application has informed the United States Government that any 
        intermediate consignees and the ultimate consignee specified in 
        the application are required to use the highly enriched uranium 
        solely to produce medical isotopes; and
            ``(B) the highly enriched uranium for medical isotope 
        production will be irradiated only in a reactor in a recipient 
        country that--
                ``(i) uses an alternative nuclear reactor fuel; or
                ``(ii) is the subject of an agreement with the United 
            States Government to convert to an alternative nuclear 
            reactor fuel when alternative nuclear reactor fuel can be 
            used in the reactor.
        ``(3) Review of physical protection requirements.--
            ``(A) In general.--The Commission shall review the adequacy 
        of physical protection requirements that, as of the date of an 
        application under paragraph (2), are applicable to the 
        transportation and storage of highly enriched uranium for 
        medical isotope production or control of residual material 
        after irradiation and extraction of medical isotopes.
            ``(B) Imposition of additional requirements.--If the 
        Commission determines that additional physical protection 
        requirements are necessary (including a limit on the quantity 
        of highly enriched uranium that may be contained in a single 
        shipment), the Commission shall impose such requirements as 
        license conditions or through other appropriate means.
        ``(4) First report to congress.--
            ``(A) NAS study.--The Secretary shall enter into an 
        arrangement with the National Academy of Sciences to conduct a 
        study to determine--
                ``(i) the feasibility of procuring supplies of medical 
            isotopes from commercial sources that do not use highly 
            enriched uranium;
                ``(ii) the current and projected demand and 
            availability of medical isotopes in regular current 
            domestic use;
                ``(iii) the progress that is being made by the 
            Department of Energy and others to eliminate all use of 
            highly enriched uranium in reactor fuel, reactor targets, 
            and medical isotope production facilities; and
                ``(iv) the potential cost differential in medical 
            isotope production in the reactors and target processing 
            facilities if the products were derived from production 
            systems that do not involve fuels and targets with highly 
            enriched uranium.
            ``(B) Feasibility.--For the purpose of this subsection, the 
        use of low enriched uranium to produce medical isotopes shall 
        be determined to be feasible if--
                ``(i) low enriched uranium targets have been developed 
            and demonstrated for use in the reactors and target 
            processing facilities that produce significant quantities 
            of medical isotopes to serve United States needs for such 
            isotopes;
                ``(ii) sufficient quantities of medical isotopes are 
            available from low enriched uranium targets and fuel to 
            meet United States domestic needs; and
                ``(iii) the average anticipated total cost increase 
            from production of medical isotopes in such facilities 
            without use of highly enriched uranium is less than 10 
            percent.
            ``(C) Report by the secretary.--Not later than 5 years 
        after the date of enactment of the Energy Policy Act of 2005, 
        the Secretary shall submit to Congress a report that--
                ``(i) contains the findings of the National Academy of 
            Sciences made in the study under subparagraph (A); and
                ``(ii) discloses the existence of any commitments from 
            commercial producers to provide domestic requirements for 
            medical isotopes without use of highly enriched uranium 
            consistent with the feasibility criteria described in 
            subparagraph (B) not later than the date that is 4 years 
            after the date of submission of the report.
        ``(5) Second report to congress.--If the study of the National 
    Academy of Sciences determines under paragraph (4)(A)(i) that the 
    procurement of supplies of medical isotopes from commercial sources 
    that do not use highly enriched uranium is feasible, but the 
    Secretary is unable to report the existence of commitments under 
    paragraph (4)(C)(ii), not later than the date that is 6 years after 
    the date of enactment of the Energy Policy Act of 2005, the 
    Secretary shall submit to Congress a report that describes options 
    for developing domestic supplies of medical isotopes in quantities 
    that are adequate to meet domestic demand without the use of highly 
    enriched uranium consistent with the cost increase described in 
    paragraph (4)(B)(iii).
        ``(6) Certification.--At such time as commercial facilities 
    that do not use highly enriched uranium are capable of meeting 
    domestic requirements for medical isotopes, within the cost 
    increase described in paragraph (4)(B)(iii) and without impairing 
    the reliable supply of medical isotopes for domestic utilization, 
    the Secretary shall submit to Congress a certification to that 
    effect.
        ``(7) Sunset provision.--After the Secretary submits a 
    certification under paragraph (6), the Commission shall, by rule, 
    terminate its review of export license applications under this 
    subsection.''.

SEC. 631. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

    (a) Responsibility for Activities To Provide Storage Facility.--The 
Secretary shall provide to Congress official notification of the final 
designation of an entity within the Department to have the 
responsibility of completing activities needed to provide a facility 
for safely disposing of all greater-than-Class C low-level radioactive 
waste.
    (b) Reports and Plans.--
        (1) Report on permanent disposal facility.--
            (A) Plan regarding cost and schedule for completion of eis 
        and rod.--Not later than 1 year after the date of enactment of 
        this Act, the Secretary, in consultation with Congress, shall 
        submit to Congress a report containing an estimate of the cost 
        and a proposed schedule to complete an environmental impact 
        statement and record of decision for a permanent disposal 
        facility for greater-than-Class C radioactive waste.
            (B) Analysis of alternatives.--Before the Secretary makes a 
        final decision on the disposal alternative or alternatives to 
        be implemented, the Secretary shall--
                (i) submit to Congress a report that describes all 
            alternatives under consideration, including all information 
            required in the comprehensive report making recommendations 
            for ensuring the safe disposal of all greater-than-Class C 
            low-level radioactive waste that was submitted by the 
            Secretary to Congress in February 1987; and
                (ii) await action by Congress.
        (2) Short-term plan for recovery and storage.--
            (A) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        plan to ensure the continued recovery and storage of greater-
        than-Class C low-level radioactive sealed sources that pose a 
        security threat until a permanent disposal facility is 
        available.
            (B) Contents.--The plan shall address estimated cost, 
        resource, and facility needs.

SEC. 632. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR 
              TERRORISM.

    (a) In General.--Section 129 of the Atomic Energy Act of 1954 (42 
U.S.C. 2158) is amended--
        (1) by inserting ``a.'' before ``No nuclear materials and 
    equipment''; and
        (2) by adding at the end the following new subsection:
    ``b.(1) Notwithstanding any other provision of law, including 
specifically section 121 of this Act, and except as provided in 
paragraphs (2) and (3), no nuclear materials and equipment or sensitive 
nuclear technology, including items and assistance authorized by 
section 57 b. of this Act and regulated under part 810 of title 10, 
Code of Federal Regulations, and nuclear-related items on the Commerce 
Control List maintained under part 774 of title 15 of the Code of 
Federal Regulations, shall be exported or reexported, or transferred or 
retransferred whether directly or indirectly, and no Federal agency 
shall issue any license, approval, or authorization for the export or 
reexport, or transfer, or retransfer, whether directly or indirectly, 
of these items or assistance (as defined in this paragraph) to any 
country whose government has been identified by the Secretary of State 
as engaged in state sponsorship of terrorist activities (specifically 
including any country the government of which has been determined by 
the Secretary of State under section 620A(a) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or section 
40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) to have 
repeatedly provided support for acts of international terrorism).
    ``(2) This subsection shall not apply to exports, reexports, 
transfers, or retransfers of radiation monitoring technologies, 
surveillance equipment, seals, cameras, tamper-indication devices, 
nuclear detectors, monitoring systems, or equipment necessary to safely 
store, transport, or remove hazardous materials, whether such items, 
services, or information are regulated by the Department of Energy, the 
Department of Commerce, or the Commission, except to the extent that 
such technologies, equipment, seals, cameras, devices, detectors, or 
systems are available for use in the design or construction of nuclear 
reactors or nuclear weapons.
    ``(3) The President may waive the application of paragraph (1) to a 
country if the President determines and certifies to Congress that the 
waiver will not result in any increased risk that the country receiving 
the waiver will acquire nuclear weapons, nuclear reactors, or any 
materials or components of nuclear weapons and--
        ``(A) the government of such country has not within the 
    preceding 12-month period willfully aided or abetted the 
    international proliferation of nuclear explosive devices to 
    individuals or groups or willfully aided and abetted an individual 
    or groups in acquiring unsafeguarded nuclear materials;
        ``(B) in the judgment of the President, the government of such 
    country has provided adequate, verifiable assurances that it will 
    cease its support for acts of international terrorism;
        ``(C) the waiver of that paragraph is in the vital national 
    security interest of the United States; or
        ``(D) such a waiver is essential to prevent or respond to a 
    serious radiological hazard in the country receiving the waiver 
    that may or does threaten public health and safety.''.
    (b) Applicability to Exports Approved for Transfer but Not 
Transferred.--Subsection b. of section 129 of Atomic Energy Act of 
1954, as added by subsection (a) of this section, shall apply with 
respect to exports that have been approved for transfer as of the date 
of the enactment of this Act but have not yet been transferred as of 
that date.

SEC. 633. EMPLOYEE BENEFITS.

    Section 3110(a) of the USEC Privatization Act (42 U.S.C. 2297h-
8(a)) is amended by adding at the end the following new paragraph:
    ``(8) Continuity of benefits.--To the extent appropriations are 
provided in advance for this purpose or are otherwise available, not 
later than 30 days after the date of enactment of this paragraph, the 
Secretary shall implement such actions as are necessary to ensure that 
any employee who--
        ``(A) is involved in providing infrastructure or environmental 
    remediation services at the Portsmouth, Ohio, or the Paducah, 
    Kentucky, Gaseous Diffusion Plant;
        ``(B) has been an employee of the Department of Energy's 
    predecessor management and integrating contractor (or its first or 
    second tier subcontractors), or of the Corporation, at the 
    Portsmouth, Ohio, or the Paducah, Kentucky, facility; and
        ``(C) was eligible as of April 1, 2005, to participate in or 
    transfer into the Multiple Employer Pension Plan or the associated 
    multiple employer retiree health care benefit plans, as defined in 
    those plans,
shall continue to be eligible to participate in or transfer into such 
pension or health care benefit plans.''.

SEC. 634. DEMONSTRATION HYDROGEN PRODUCTION AT EXISTING NUCLEAR POWER 
              PLANTS.

    (a) Demonstration Projects.--The Secretary shall provide for the 
establishment of 2 projects in geographic areas that are regionally and 
climatically diverse to demonstrate the commercial production of 
hydrogen at existing nuclear power plants.
    (b) Economic Analysis.--Prior to making an award under subsection 
(a), the Secretary shall determine whether the use of existing nuclear 
power plants is a cost-effective means of producing hydrogen.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
section not more than $100,000,000.

SEC. 635. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
              LIABILITY FOR CERTAIN FOREIGN INCIDENTS.

    (a) In General.--Notwithstanding any other provision of law, no 
officer of the United States or of any department, agency, or 
instrumentality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or modification of 
a contract or other arrangement, the purpose or effect of which would 
be to directly or indirectly impose liability on the United States 
Government, or any department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear incidents 
occurring in connection with the design, construction, or operation of 
a production facility or utilization facility in any country whose 
government has been identified by the Secretary of State as engaged in 
state sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had been 
determined by the Secretary of State under section 620A(a) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of 
the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or 
section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) to 
have repeatedly provided support for acts of international terrorism). 
This section shall not apply to nuclear incidents occurring as a result 
of missions, carried out under the direction of the Secretary, the 
Secretary of Defense, or the Secretary of State, that are necessary to 
safely secure, store, transport, or remove nuclear materials for 
nuclear safety or nonproliferation purposes.
    (b) Definitions.--The terms used in this section shall have the 
same meaning as those terms have under section 11 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2014), unless otherwise expressly provided in 
this section.

SEC. 636. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this subtitle and the amendments made by this subtitle.

SEC. 637. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES.

    (a) In General.--Section 6101 of the Omnibus Budget Reconciliation 
Act of 1990 (42 U.S.C. 2214) is amended--
        (1) in subsection (a)--
            (A) by striking ``Except as provided in paragraph (3), 
        the'' and inserting ``The'' in paragraph (1); and
            (B) by striking paragraph (3); and
        (2) in subsection (c)--
            (A) by striking ``and'' at the end of paragraph (2)(A)(i);
            (B) by striking the period at the end of paragraph 
        (2)(A)(ii) and inserting a semicolon;
            (C) by adding at the end of paragraph (2)(A) the following 
        new clauses:
                ``(iii) amounts appropriated to the Commission for the 
            fiscal year for implementation of section 3116 of the 
            Ronald W. Reagan National Defense Authorization Act for 
            Fiscal Year 2005; and
                ``(iv) amounts appropriated to the Commission for 
            homeland security activities of the Commission for the 
            fiscal year, except for the costs of fingerprinting and 
            background checks required by section 149 of the Atomic 
            Energy Act of 1954 (42 U.S.C. 2169) and the costs of 
            conducting security inspections.''; and
            (D) by amending paragraph (2)(B)(v) to read as follows:
                ``(v) 90 percent for fiscal year 2005 and each fiscal 
            year thereafter.''.
    (b) Repeal.--Section 7601 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2006.

SEC. 638. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

    (a) Definitions.--In this section:
        (1) Advanced nuclear facility.--The term ``advanced nuclear 
    facility'' means any nuclear facility the reactor design for which 
    is approved after December 31, 1993, by the Commission (and such 
    design or a substantially similar design of comparable capacity was 
    not approved on or before that date).
        (2) Combined license.--The term ``combined license'' means a 
    combined construction and operating license for an advanced nuclear 
    facility issued by the Commission.
        (3) Commission.--The term ``Commission'' means the Nuclear 
    Regulatory Commission.
        (4) Sponsor.--The term ``sponsor'' means a person who has 
    applied for or been granted a combined license.
    (b) Contract Authority.--
        (1) In general.--The Secretary may enter into contracts under 
    this section with sponsors of an advanced nuclear facility that 
    cover a total of 6 reactors, with the 6 reactors consisting of not 
    more than 3 different reactor designs, in accordance with paragraph 
    (2).
        (2) Requirement for contracts.--
            (A) Definition of loan cost.--In this paragraph, the term 
        ``loan cost'' has the meaning given the term ``cost of a loan 
        guarantee'' under section 502(5)(C) of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
            (B) Establishment of accounts.--There is established in the 
        Department 2 separate accounts, which shall be known as the--
                (i) ``Standby Support Program Account''; and
                (ii) ``Standby Support Grant Account''.
            (C) Requirement.--The Secretary shall not enter into a 
        contract under this section unless the Secretary deposits--
                (i) in the Standby Support Program Account established 
            under subparagraph (B), funds appropriated to the Secretary 
            in advance of the contract or a combination of appropriated 
            funds and loan guarantee fees that are in an amount 
            sufficient to cover the loan costs described in subsection 
            (d)(5)(A); and
                (ii) in the Standby Support Grant Account established 
            under subparagraph (B), funds appropriated to the Secretary 
            in advance of the contract, paid to the Secretary by the 
            sponsor of the advanced nuclear facility, or a combination 
            of appropriations and payments that are in an amount 
            sufficient cover the costs described in subparagraphs (B), 
            (C), and (D) of subsection (d)(5).
    (c) Covered Delays.--
        (1) Inclusions.--Under each contract authorized by this 
    section, the Secretary shall pay the costs specified in subsection 
    (d), using funds appropriated or collected for the covered costs, 
    if full power operation of the advanced nuclear facility is delayed 
    by--
            (A) the failure of the Commission to comply with schedules 
        for review and approval of inspections, tests, analyses, and 
        acceptance criteria established under the combined license or 
        the conduct of preoperational hearings by the Commission for 
        the advanced nuclear facility; or
            (B) litigation that delays the commencement of full-power 
        operations of the advanced nuclear facility.
        (2) Exclusions.--The Secretary may not enter into any contract 
    under this section that would obligate the Secretary to pay any 
    costs resulting from--
            (A) the failure of the sponsor to take any action required 
        by law or regulation;
            (B) events within the control of the sponsor; or
            (C) normal business risks.
    (d) Covered Costs.--
        (1) In general.--Subject to paragraphs (2), (3), and (4), the 
    costs that shall be paid by the Secretary pursuant to a contract 
    entered into under this section are the costs that result from a 
    delay covered by the contract.
        (2) Initial 2 reactors.--In the case of the first 2 reactors 
    that receive combined licenses and on which construction is 
    commenced, the Secretary shall pay--
            (A) 100 percent of the covered costs of delay; but
            (B) not more than $500,000,000 per contract.
        (3) Subsequent 4 reactors.--In the case of the next 4 reactors 
    that receive a combined license and on which construction is 
    commenced, the Secretary shall pay--
            (A) 50 percent of the covered costs of delay that occur 
        after the initial 180-day period of covered delay; but
            (B) not more than $250,000,000 per contract.
        (4) Conditions on payment of certain covered costs.--
            (A) In general.--The obligation of the Secretary to pay the 
        covered costs described in subparagraph (B) of paragraph (5) is 
        subject to the Secretary receiving from appropriations or 
        payments from other non-Federal sources amounts sufficient to 
        pay the covered costs.
            (B) Non-federal sources.--The Secretary may receive and 
        accept payments from any non-Federal source, which shall be 
        made available without further appropriation for the payment of 
        the covered costs.
        (5) Types of covered costs.--Subject to paragraphs (2), (3), 
    and (4), the contract entered into under this section for an 
    advanced nuclear facility shall include as covered costs those 
    costs that result from a delay during construction and in gaining 
    approval for fuel loading and full-power operation, including--
            (A) principal or interest on any debt obligation of an 
        advanced nuclear facility owned by a non-Federal entity; and
            (B) the incremental difference between--
                (i) the fair market price of power purchased to meet 
            the contractual supply agreements that would have been met 
            by the advanced nuclear facility but for the delay; and
                (ii) the contractual price of power from the advanced 
            nuclear facility subject to the delay.
    (e) Requirements.--Any contract between a sponsor and the Secretary 
covering an advanced nuclear facility under this section shall require 
the sponsor to use due diligence to shorten, and to end, the delay 
covered by the contract.
    (f) Reports.--For each advanced nuclear facility that is covered by 
a contract under this section, the Commission shall submit to Congress 
and the Secretary quarterly reports summarizing the status of licensing 
actions associated with the advanced nuclear facility.
    (g) Regulations.--
        (1) In general.--Subject to paragraphs (2) and (3), the 
    Secretary shall issue such regulations as are necessary to carry 
    out this section.
        (2) Interim final rulemaking.--Not later than 270 days after 
    the date of enactment of this Act, the Secretary shall issue for 
    public comment an interim final rule regulating contracts 
    authorized by this section.
        (3) Notice of final rulemaking.--Not later than 1 year after 
    the date of enactment of this Act, the Secretary shall issue a 
    notice of final rulemaking regulating the contracts.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 639. CONFLICTS OF INTEREST RELATING TO CONTRACTS AND OTHER 
              ARRANGEMENTS.

    Section 170A b. of the Atomic Energy Act of 1954 (42 U.S.C. 
2210a(b)) is amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively, and indenting appropriately;
        (2) by striking ``b. The Commission'' and inserting the 
    following:
    ``b. Evaluation.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Nuclear Regulatory Commission''; and
        (3) by adding at the end the following:
        ``(2) Nuclear regulatory commission.--Notwithstanding any 
    conflict of interest, the Nuclear Regulatory Commission may enter 
    into a contract, agreement, or arrangement with the Department of 
    Energy or the operator of a Department of Energy facility, if the 
    Nuclear Regulatory Commission determines that--
            ``(A) the conflict of interest cannot be mitigated; and
            ``(B) adequate justification exists to proceed without 
        mitigation of the conflict of interest.''.

           Subtitle C--Next Generation Nuclear Plant Project

SEC. 641. PROJECT ESTABLISHMENT.

    (a) Establishment.--The Secretary shall establish a project to be 
known as the ``Next Generation Nuclear Plant Project'' (referred to in 
this subtitle as the ``Project'').
    (b) Content.--The Project shall consist of the research, 
development, design, construction, and operation of a prototype plant, 
including a nuclear reactor that--
        (1) is based on research and development activities supported 
    by the Generation IV Nuclear Energy Systems Initiative under 
    section 942(d); and
        (2) shall be used--
            (A) to generate electricity;
            (B) to produce hydrogen; or
            (C) both to generate electricity and to produce hydrogen.

SEC. 642. PROJECT MANAGEMENT.

    (a) Departmental Management.--
        (1) In general.--The Project shall be managed in the Department 
    by the Office of Nuclear Energy, Science, and Technology.
        (2) Generation iv nuclear energy systems program.--The 
    Secretary may combine the Project with the Generation IV Nuclear 
    Energy Systems Initiative.
        (3) Existing doe project management expertise.--The Secretary 
    may utilize capabilities for review of construction projects for 
    advanced scientific facilities within the Office of Science to 
    track the progress of the Project.
    (b) Laboratory Management.--
        (1) Lead laboratory.--The Idaho National Laboratory shall be 
    the lead National Laboratory for the Project and shall collaborate 
    with other National Laboratories, institutions of higher education, 
    other research institutes, industrial researchers, and 
    international researchers to carry out the Project.
        (2) Industrial partnerships.--
            (A) In general.--The Idaho National Laboratory shall 
        organize a consortium of appropriate industrial partners that 
        will carry out cost-shared research, development, design, and 
        construction activities, and operate research facilities, on 
        behalf of the Project.
            (B) Cost-sharing.--Activities of industrial partners funded 
        by the Project shall be cost-shared in accordance with section 
        988.
            (C) Preference.--Preference in determining the final 
        structure of the consortium or any partnerships under this 
        subtitle shall be given to a structure (including designating 
        as a lead industrial partner an entity incorporated in the 
        United States) that retains United States technological 
        leadership in the Project while maximizing cost sharing 
        opportunities and minimizing Federal funding responsibilities.
        (3) Prototype plant siting.--The prototype nuclear reactor and 
    associated plant shall be sited at the Idaho National Laboratory in 
    Idaho.
        (4) Reactor test capabilities.--The Project shall use, if 
    appropriate, reactor test capabilities at the Idaho National 
    Laboratory.
        (5) Other laboratory capabilities.--The Project may use, if 
    appropriate, facilities at other National Laboratories.

SEC. 643. PROJECT ORGANIZATION.

    (a) Major Project Elements.--The Project shall consist of the 
following major program elements:
        (1) High-temperature hydrogen production technology development 
    and validation.
        (2) Energy conversion technology development and validation.
        (3) Nuclear fuel development, characterization, and 
    qualification.
        (4) Materials selection, development, testing, and 
    qualification.
        (5) Reactor and balance-of-plant design, engineering, safety 
    analysis, and qualification.
    (b) Project Phases.--The Project shall be conducted in the 
following phases:
        (1) First project phase.--A first project phase shall be 
    conducted to--
            (A) select and validate the appropriate technology under 
        subsection (a)(1);
            (B) carry out enabling research, development, and 
        demonstration activities on technologies and components under 
        paragraphs (2) through (4) of subsection (a);
            (C) determine whether it is appropriate to combine 
        electricity generation and hydrogen production in a single 
        prototype nuclear reactor and plant; and
            (D) carry out initial design activities for a prototype 
        nuclear reactor and plant, including development of design 
        methods and safety analytical methods and studies under 
        subsection (a)(5).
        (2) Second project phase.--A second project phase shall be 
    conducted to--
            (A) continue appropriate activities under paragraphs (1) 
        through (5) of subsection (a);
            (B) develop, through a competitive process, a final design 
        for the prototype nuclear reactor and plant;
            (C) apply for licenses to construct and operate the 
        prototype nuclear reactor from the Nuclear Regulatory 
        Commission; and
            (D) construct and start up operations of the prototype 
        nuclear reactor and its associated hydrogen or electricity 
        production facilities.
    (c) Project Requirements.--
        (1) In general.--The Secretary shall ensure that the Project is 
    structured so as to maximize the technical interchange and transfer 
    of technologies and ideas into the Project from other sources of 
    relevant expertise, including--
            (A) the nuclear power industry, including nuclear 
        powerplant construction firms, particularly with respect to 
        issues associated with plant design, construction, and 
        operational and safety issues;
            (B) the chemical processing industry, particularly with 
        respect to issues relating to--
                (i) the use of process energy for production of 
            hydrogen; and
                (ii) the integration of technologies developed by the 
            Project into chemical processing environments; and
            (C) international efforts in areas related to the Project, 
        particularly with respect to hydrogen production technologies.
        (2) International collaboration.--
            (A) In general.--The Secretary shall seek international 
        cooperation, participation, and financial contributions for the 
        Project.
            (B) Assistance from international partners.--The Secretary, 
        through the Idaho National Laboratory, may contract for 
        assistance from specialists or facilities from member countries 
        of the Generation IV International Forum, the Russian 
        Federation, or other international partners if the specialists 
        or facilities provide access to cost-effective and relevant 
        skills or test capabilities.
            (C) Partner nations.--The Project may involve demonstration 
        of selected project objectives in a partner country.
            (D) Generation iv international forum.--The Secretary shall 
        ensure that international activities of the Project are 
        coordinated with the Generation IV International Forum.
        (3) Review by nuclear energy research advisory committee.--
            (A) In general.--The Nuclear Energy Research Advisory 
        Committee of the Department (referred to in this paragraph as 
        the ``NERAC'') shall--
                (i) review all program plans for the Project and all 
            progress under the Project on an ongoing basis; and
                (ii) ensure that important scientific, technical, 
            safety, and program management issues receive attention in 
            the Project and by the Secretary.
            (B) Additional expertise.--The NERAC shall supplement the 
        expertise of the NERAC or appoint subpanels to incorporate into 
        the review by the NERAC the relevant sources of expertise 
        described under paragraph (1).
            (C) Initial review.--Not later than 180 days after the date 
        of enactment of this Act, the NERAC shall--
                (i) review existing program plans for the Project in 
            light of the recommendations of the document entitled 
            ``Design Features and Technology Uncertainties for the Next 
            Generation Nuclear Plant,'' dated June 30, 2004; and
                (ii) address any recommendations of the document not 
            incorporated in program plans for the Project.
            (D) First project phase review.--On a determination by the 
        Secretary that the appropriate activities under the first 
        project phase under subsection (b)(1) are nearly complete, the 
        Secretary shall request the NERAC to conduct a comprehensive 
        review of the Project and to report to the Secretary the 
        recommendation of the NERAC concerning whether the Project is 
        ready to proceed to the second project phase under subsection 
        (b)(2).
            (E) Transmittal of reports to congress.--Not later than 60 
        days after receiving any report from the NERAC related to the 
        Project, the Secretary shall submit to the appropriate 
        committees of the Senate and the House of Representatives a 
        copy of the report, along with any additional views of the 
        Secretary that the Secretary may consider appropriate.

SEC. 644. NUCLEAR REGULATORY COMMISSION.

    (a) In General.--In accordance with section 202 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5842), the Nuclear Regulatory 
Commission shall have licensing and regulatory authority for any 
reactor authorized under this subtitle.
    (b) Licensing Strategy.--Not later than 3 years after the date of 
enactment of this Act, the Secretary and the Chairman of the Nuclear 
Regulatory Commission shall jointly submit to the appropriate 
committees of the Senate and the House of Representatives a licensing 
strategy for the prototype nuclear reactor, including--
        (1) a description of ways in which current licensing 
    requirements relating to light-water reactors need to be adapted 
    for the types of prototype nuclear reactor being considered by the 
    Project;
        (2) a description of analytical tools that the Nuclear 
    Regulatory Commission will have to develop to independently verify 
    designs and performance characteristics of components, equipment, 
    systems, or structures associated with the prototype nuclear 
    reactor;
        (3) other research or development activities that may be 
    required on the part of the Nuclear Regulatory Commission in order 
    to review a license application for the prototype nuclear reactor; 
    and
        (4) an estimate of the budgetary requirements associated with 
    the licensing strategy.
    (c) Ongoing Interaction.--The Secretary shall seek the active 
participation of the Nuclear Regulatory Commission throughout the 
duration of the Project to--
        (1) avoid design decisions that will compromise adequate safety 
    margins in the design of the reactor or impair the accessibility of 
    nuclear safety-related components of the prototype reactor for 
    inspection and maintenance;
        (2) develop tools to facilitate inspection and maintenance 
    needed for safety purposes; and
        (3) develop risk-based criteria for any future commercial 
    development of a similar reactor architectures.

SEC. 645. PROJECT TIMELINES AND AUTHORIZATION OF APPROPRIATIONS.

    (a) Target Date to Complete the First Project Phase.--Not later 
than September 30, 2011, the Secretary shall--
        (1) select the technology to be used by the Project for high-
    temperature hydrogen production and the initial design parameters 
    for the prototype nuclear plant; or
        (2) submit to Congress a report establishing an alternative 
    date for making the selection.
    (b) Design Competition for Second Project Phase.--
        (1) In general.--The Secretary, acting through the Idaho 
    National Laboratory, shall fund not more than 4 teams for not more 
    than 2 years to develop detailed proposals for competitive 
    evaluation and selection of a single proposal for a final design of 
    the prototype nuclear reactor.
        (2) Systems integration.--The Secretary may structure Project 
    activities in the second project phase to use the lead industrial 
    partner of the competitively selected design under paragraph (1) in 
    a systems integration role for final design and construction of the 
    Project.
    (c) Target Date to Complete Project Construction.--Not later than 
September 30, 2021, the Secretary shall--
        (1) complete construction and begin operations of the prototype 
    nuclear reactor and associated energy or hydrogen facilities; or
        (2) submit to Congress a report establishing an alternative 
    date for completion.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for research and construction activities 
under this subtitle (including for transfer to the Nuclear Regulatory 
Commission for activities under section 644 as appropriate)--
        (1) $1,250,000,000 for the period of fiscal years 2006 through 
    2015; and
        (2) such sums as are necessary for each of fiscal years 2016 
    through 2021.

                      Subtitle D--Nuclear Security

SEC. 651. NUCLEAR FACILITY AND MATERIALS SECURITY.

    (a) Security Evaluations; Design Basis Threat Rulemaking.--
        (1) In general.--Chapter 14 of the Atomic Energy Act of 1954 
    (42 U.S.C. 2201 et seq.) (as amended by section 624(a)) is amended 
    by adding at the end the following:

``SEC. 170D. SECURITY EVALUATIONS.

    ``a. Security Response Evaluations.--Not less often than once every 
3 years, the Commission shall conduct security evaluations at each 
licensed facility that is part of a class of licensed facilities, as 
the Commission considers to be appropriate, to assess the ability of a 
private security force of a licensed facility to defend against any 
applicable design basis threat.
    ``b. Force-on-Force Exercises.--(1) The security evaluations shall 
include force-on-force exercises.
    ``(2) The force-on-force exercises shall, to the maximum extent 
practicable, simulate security threats in accordance with any design 
basis threat applicable to a facility.
    ``(3) In conducting a security evaluation, the Commission shall 
mitigate any potential conflict of interest that could influence the 
results of a force-on-force exercise, as the Commission determines to 
be necessary and appropriate.
    ``c. Action by Licensees.--The Commission shall ensure that an 
affected licensee corrects those material defects in performance that 
adversely affect the ability of a private security force at that 
facility to defend against any applicable design basis threat.
    ``d. Facilities Under Heightened Threat Levels.--The Commission may 
suspend a security evaluation under this section if the Commission 
determines that the evaluation would compromise security at a nuclear 
facility under a heightened threat level.
    ``e. Report.--Not less often than once each year, the Commission 
shall submit to the Committee on Environment and Public Works of the 
Senate and the Committee on Energy and Commerce of the House of 
Representatives a report, in classified form and unclassified form, 
that describes the results of each security response evaluation 
conducted and any relevant corrective action taken by a licensee during 
the previous year.

``SEC. 170E. DESIGN BASIS THREAT RULEMAKING.

    ``a. Rulemaking.--The Commission shall--
        ``(1) not later than 90 days after the date of enactment of 
    this section, initiate a rulemaking proceeding, including notice 
    and opportunity for public comment, to be completed not later than 
    18 months after that date, to revise the design basis threats of 
    the Commission; or
        ``(2) not later than 18 months after the date of enactment of 
    this section, complete any ongoing rulemaking to revise the design 
    basis threats.
    ``b. Factors.--When conducting its rulemaking, the Commission shall 
consider the following, but not be limited to--
        ``(1) the events of September 11, 2001;
        ``(2) an assessment of physical, cyber, biochemical, and other 
    terrorist threats;
        ``(3) the potential for attack on facilities by multiple 
    coordinated teams of a large number of individuals;
        ``(4) the potential for assistance in an attack from several 
    persons employed at the facility;
        ``(5) the potential for suicide attacks;
        ``(6) the potential for water-based and air-based threats;
        ``(7) the potential use of explosive devices of considerable 
    size and other modern weaponry;
        ``(8) the potential for attacks by persons with a sophisticated 
    knowledge of facility operations;
        ``(9) the potential for fires, especially fires of long 
    duration;
        ``(10) the potential for attacks on spent fuel shipments by 
    multiple coordinated teams of a large number of individuals;
        ``(11) the adequacy of planning to protect the public health 
    and safety at and around nuclear facilities, as appropriate, in the 
    event of a terrorist attack against a nuclear facility; and
        ``(12) the potential for theft and diversion of nuclear 
    materials from such facilities.''.
        (2) Conforming amendment.--The table of sections of the Atomic 
    Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by section 
    624(b)) is amended by adding at the end of the items relating to 
    chapter 14 the following:

``Sec. 170D. Security evaluations.
``Sec. 170E. Design basis threat rulemaking.''.

        (3) Federal security coordinators.--
            (A) Regional offices.--Not later than 18 months after the 
        date of enactment of this Act, the Nuclear Regulatory 
        Commission (referred to in this section as the ``Commission'') 
        shall assign a Federal security coordinator, under the 
        employment of the Commission, to each region of the Commission.
            (B) Responsibilities.--The Federal security coordinator 
        shall be responsible for--
                (i) communicating with the Commission and other 
            Federal, State, and local authorities concerning threats, 
            including threats against such classes of facilities as the 
            Commission determines to be appropriate;
                (ii) monitoring such classes of facilities as the 
            Commission determines to be appropriate to ensure that they 
            maintain security consistent with the security plan in 
            accordance with the appropriate threat level; and
                (iii) assisting in the coordination of security 
            measures among the private security forces at such classes 
            of facilities as the Commission determines to be 
            appropriate and Federal, State, and local authorities, as 
            appropriate.
    (b) Backup Power for Certain Emergency Notification Systems.--For 
any licensed nuclear power plants located where there is a permanent 
population, as determined by the 2000 decennial census, in excess of 
15,000,000 within a 50-mile radius of the power plant, not later than 
18 months after enactment of this Act, the Commission shall require 
that backup power to be available for the emergency notification system 
of the power plant, including the emergency siren warning system, if 
the alternating current supply within the 10-mile emergency planning 
zone of the power plant is lost.
    (c) Additional Provisions.--
        (1) Provision of support to university nuclear safety, 
    security, and environmental protection programs.--Section 31 b. of 
    the Atomic Energy Act of 1954 (42 U.S.C. 2051(b)) is amended--
            (A) by striking ``b. The Commission is further authorized 
        to make'' and inserting the following:
    ``b. Grants and Contributions.--The Commission is authorized--
        ``(1) to make'';
            (B) in paragraph (1) (as designated by subparagraph (A)) by 
        striking the period at the end and inserting ``; and''; and
            (C) by adding at the end the following:
        ``(2) to provide grants, loans, cooperative agreements, 
    contracts, and equipment to institutions of higher education (as 
    defined in section 102 of the Higher Education Act of 1965 (20 
    U.S.C. 1002)) to support courses, studies, training, curricula, and 
    disciplines pertaining to nuclear safety, security, or 
    environmental protection, or any other field that the Commission 
    determines to be critical to the regulatory mission of the 
    Commission.''.
        (2) Recruitment tools.--Chapter 14 of the Atomic Energy Act of 
    1954 (42 U.S.C. 2201 et seq.) (as amended by subsection (a)(1)) is 
    amended by adding at the end the following:

``SEC. 170F. RECRUITMENT TOOLS.

    ``The Commission may purchase promotional items of nominal value 
for use in the recruitment of individuals for employment.''.
        (3) Expenses authorized to be paid by the commission.--Chapter 
    14 of the Atomic Energy Act of 1954 (42 U.S.C. 2201 et seq.) (as 
    amended by paragraph (2)) is amended by adding at the end the 
    following:

``SEC. 170G. EXPENSES AUTHORIZED TO BE PAID BY THE COMMISSION.

    ``The Commission may--
        ``(1) pay transportation, lodging, and subsistence expenses of 
    employees who--
            ``(A) assist scientific, professional, administrative, or 
        technical employees of the Commission; and
            ``(B) are students in good standing at an institution of 
        higher education (as defined in section 102 of the Higher 
        Education Act of 1965 (20 U.S.C. 1002)) pursuing courses 
        related to the field in which the students are employed by the 
        Commission; and
        ``(2) pay the costs of health and medical services furnished, 
    pursuant to an agreement between the Commission and the Department 
    of State, to employees of the Commission and dependents of the 
    employees serving in foreign countries.''.
        (4) Partnership program with institutions of higher 
    education.--
            (A) In general.--Chapter 19 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2015 et seq.) (as amended by section 622(a)) is 
        amended by inserting after section 243 the following:

``SEC. 244. PARTNERSHIP PROGRAM WITH INSTITUTIONS OF HIGHER EDUCATION.

    ``a. Definitions.--In this section:
        ``(1) Hispanic-serving institution.--The term `Hispanic-serving 
    institution' has the meaning given the term in section 502(a) of 
    the Higher Education Act of 1965 (20 U.S.C. 1101a(a)).
        ``(2) Historically black college and university.--The term 
    `historically Black college or university' has the meaning given 
    the term `part B institution' in section 322 of the Higher 
    Education Act of 1965 (20 U.S.C. 1061).
        ``(3) Tribal college.--The term `Tribal college' has the 
    meaning given the term `tribally controlled college or university' 
    in section 2(a) of the Tribally Controlled College or University 
    Assistance Act of 1978 (25 U.S.C. 1801(a)).
    ``b. Partnership Program.--The Commission may establish and 
participate in activities relating to research, mentoring, instruction, 
and training with institutions of higher education, including Hispanic-
serving institutions, historically Black colleges or universities, and 
Tribal colleges, to strengthen the capacity of the institutions--
        ``(1) to educate and train students (including present or 
    potential employees of the Commission); and
        ``(2) to conduct research in the field of science, engineering, 
    or law, or any other field that the Commission determines is 
    important to the work of the Commission.''.
        (5) Conforming amendments.--The table of sections of the Atomic 
    Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by subsection 
    (a)(2)) is amended--
            (A) by adding at the end of the items relating to chapter 
        14 the following:

``Sec. 170F. Recruitment tools.
``Sec. 170G. Expenses authorized to be paid by the Commission.'';

        and
            (B) by inserting after the item relating to section 243 the 
        following:

``Sec. 244. Partnership program with institutions of higher 
          education.''.

    (d) Radiation Source Protection.--
        (1) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42 
    U.S.C. 2201 et seq.) (as amended by subsection (c)(3)) is amended 
    by adding at the end the following:

``SEC. 170H. RADIATION SOURCE PROTECTION.

    ``a. Definitions.--In this section:
        ``(1) Code of conduct.--The term `Code of Conduct' means the 
    code entitled the `Code of Conduct on the Safety and Security of 
    Radioactive Sources', approved by the Board of Governors of the 
    International Atomic Energy Agency and dated September 8, 2003.
        ``(2) Radiation source.--The term `radiation source' means--
            ``(A) a Category 1 Source or a Category 2 Source, as 
        defined in the Code of Conduct; and
            ``(B) any other material that poses a threat such that the 
        material is subject to this section, as determined by the 
        Commission, by regulation, other than spent nuclear fuel and 
        special nuclear materials.
    ``b. Commission Approval.--Not later than 180 days after the date 
of enactment of this section, the Commission shall issue regulations 
prohibiting a person from--
        ``(1) exporting a radiation source, unless the Commission has 
    specifically determined under section 57 or 82, consistent with the 
    Code of Conduct, with respect to the exportation, that--
            ``(A) the recipient of the radiation source may receive and 
        possess the radiation source under the laws and regulations of 
        the country of the recipient;
            ``(B) the recipient country has the appropriate technical 
        and administrative capability, resources, and regulatory 
        structure to ensure that the radiation source will be managed 
        in a safe and secure manner; and
            ``(C) before the date on which the radiation source is 
        shipped--
                ``(i) a notification has been provided to the recipient 
            country; and
                ``(ii) a notification has been received from the 
            recipient country;
        as the Commission determines to be appropriate;
        ``(2) importing a radiation source, unless the Commission has 
    determined, with respect to the importation, that--
            ``(A) the proposed recipient is authorized by law to 
        receive the radiation source; and
            ``(B) the shipment will be made in accordance with any 
        applicable Federal or State law or regulation; and
        ``(3) selling or otherwise transferring ownership of a 
    radiation source, unless the Commission--
            ``(A) has determined that the licensee has verified that 
        the proposed recipient is authorized under law to receive the 
        radiation source; and
            ``(B) has required that the transfer shall be made in 
        accordance with any applicable Federal or State law or 
        regulation.
    ``c. Tracking System.--(1)(A) Not later than 1 year after the date 
of enactment of this section, the Commission shall issue regulations 
establishing a mandatory tracking system for radiation sources in the 
United States.
    ``(B) In establishing the tracking system under subparagraph (A), 
the Commission shall coordinate with the Secretary of Transportation to 
ensure compatibility, to the maximum extent practicable, between the 
tracking system and any system established by the Secretary of 
Transportation to track the shipment of radiation sources.
    ``(2) The tracking system under paragraph (1) shall--
        ``(A) enable the identification of each radiation source by 
    serial number or other unique identifier;
        ``(B) require reporting within 7 days of any change of 
    possession of a radiation source;
        ``(C) require reporting within 24 hours of any loss of control 
    of, or accountability for, a radiation source; and
        ``(D) provide for reporting under subparagraphs (B) and (C) 
    through a secure Internet connection.
    ``d. Penalty.--A violation of a regulation issued under subsection 
a. or b. shall be punishable by a civil penalty not to exceed 
$1,000,000.
    ``e. National Academy of Sciences Study.--(1) Not later than 60 
days after the date of enactment of this section, the Commission shall 
enter into an arrangement with the National Academy of Sciences under 
which the National Academy of Sciences shall conduct a study of 
industrial, research, and commercial uses for radiation sources.
    ``(2) The study under paragraph (1) shall include a review of uses 
of radiation sources in existence on the date on which the study is 
conducted, including an identification of any industrial or other 
process that--
        ``(A) uses a radiation source that could be replaced with an 
    economically and technically equivalent (or improved) process that 
    does not require the use of a radiation source; or
        ``(B) may be used with a radiation source that would pose a 
    lower risk to public health and safety in the event of an accident 
    or attack involving the radiation source.
    ``(3) Not later than 2 years after the date of enactment of this 
section, the Commission shall submit to Congress the results of the 
study under paragraph (1).
    ``f. Task Force on Radiation Source Protection and Security.--(1) 
There is established a task force on radiation source protection and 
security (referred to in this section as the `task force').
    ``(2)(A) The chairperson of the task force shall be the Chairperson 
of the Commission (or a designee).
    ``(B) The membership of the task force shall consist of the 
following:
        ``(i) The Secretary of Homeland Security (or a designee).
        ``(ii) The Secretary of Defense (or a designee).
        ``(iii) The Secretary of Energy (or a designee).
        ``(iv) The Secretary of Transportation (or a designee).
        ``(v) The Attorney General (or a designee).
        ``(vi) The Secretary of State (or a designee).
        ``(vii) The Director of National Intelligence (or a designee).
        ``(viii) The Director of the Central Intelligence Agency (or a 
    designee).
        ``(ix) The Director of the Federal Emergency Management Agency 
    (or a designee).
        ``(x) The Director of the Federal Bureau of Investigation (or a 
    designee).
        ``(xi) The Administrator of the Environmental Protection Agency 
    (or a designee).
    ``(3)(A) The task force, in consultation with Federal, State, and 
local agencies, the Conference of Radiation Control Program Directors, 
and the Organization of Agreement States, and after public notice and 
an opportunity for comment, shall evaluate, and provide recommendations 
relating to, the security of radiation sources in the United States 
from potential terrorist threats, including acts of sabotage, theft, or 
use of a radiation source in a radiological dispersal device.
    ``(B) Not later than 1 year after the date of enactment of this 
section, and not less than once every 4 years thereafter, the task 
force shall submit to Congress and the President a report, in 
unclassified form with a classified annex if necessary, providing 
recommendations, including recommendations for appropriate regulatory 
and legislative changes, for--
        ``(i) a list of additional radiation sources that should be 
    required to be secured under this Act, based on the potential 
    attractiveness of the sources to terrorists and the extent of the 
    threat to public health and safety of the sources, taking into 
    consideration--
            ``(I) radiation source radioactivity levels;
            ``(II) radioactive half-life of a radiation source;
            ``(III) dispersability;
            ``(IV) chemical and material form;
            ``(V) for radioactive materials with a medical use, the 
        availability of the sources to physicians and patients for 
        medical treatment; and
            ``(VI) any other factor that the Chairperson of the 
        Commission determines to be appropriate;
        ``(ii) the establishment of, or modifications to, a national 
    system for recovery of lost or stolen radiation sources;
        ``(iii) the storage of radiation sources that are not used in a 
    safe and secure manner as of the date on which the report is 
    submitted;
        ``(iv) modifications to the national tracking system for 
    radiation sources;
        ``(v) the establishment of, or modifications to, a national 
    system (including user fees and other methods) to provide for the 
    proper disposal of radiation sources secured under this Act;
        ``(vi) modifications to export controls on radiation sources to 
    ensure that foreign recipients of radiation sources are able and 
    willing to adequately control radiation sources from the United 
    States;
        ``(vii)(I) any alternative technologies available as of the 
    date on which the report is submitted that may perform some or all 
    of the functions performed by devices or processes that employ 
    radiation sources; and
        ``(II) the establishment of appropriate regulations and 
    incentives for the replacement of the devices and processes 
    described in subclause (I)--
            ``(aa) with alternative technologies in order to reduce the 
        number of radiation sources in the United States; or
            ``(bb) with radiation sources that would pose a lower risk 
        to public health and safety in the event of an accident or 
        attack involving the radiation source; and
        ``(viii) the creation of, or modifications to, procedures for 
    improving the security of use, transportation, and storage of 
    radiation sources, including--
            ``(I) periodic audits or inspections by the Commission to 
        ensure that radiation sources are properly secured and can be 
        fully accounted for;
            ``(II) evaluation of the security measures by the 
        Commission;
            ``(III) increased fines for violations of Commission 
        regulations relating to security and safety measures applicable 
        to licensees that possess radiation sources;
            ``(IV) criminal and security background checks for certain 
        individuals with access to radiation sources (including 
        individuals involved with transporting radiation sources);
            ``(V) requirements for effective and timely exchanges of 
        information relating to the results of criminal and security 
        background checks between the Commission and any State with 
        which the Commission has entered into an agreement under 
        section 274 b.;
            ``(VI) assurances of the physical security of facilities 
        that contain radiation sources (including facilities used to 
        temporarily store radiation sources being transported); and
            ``(VII) the screening of shipments to facilities that the 
        Commission determines to be particularly at risk for sabotage 
        of radiation sources to ensure that the shipments do not 
        contain explosives.
    ``g. Action by Commission.--Not later than 60 days after the date 
of receipt by Congress and the President of a report under subsection 
f.(3)(B), the Commission, in accordance with the recommendations of the 
task force, shall--
        ``(1) take any action the Commission determines to be 
    appropriate, including revising the system of the Commission for 
    licensing radiation sources; and
        ``(2) ensure that States that have entered into agreements with 
    the Commission under section 274 b. take similar action in a timely 
    manner.''.
        (2) Conforming amendment.--The table of sections of the Atomic 
    Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by subsection 
    (c)(5)(A)) is amended by adding at the end of the items relating to 
    chapter 14 the following:

``Sec. 170H. Radiation source protection.''.

    (e) Treatment of Accelerator-produced and Other Radioactive 
Material as Byproduct Material.--
        (1) Definition of byproduct material.--Section 11 e. of the 
    Atomic Energy Act of 1954 (42 U.S.C. 2014(e)) is amended--
            (A) by striking ``means (1) any radioactive'' and inserting 
        the following: ``means--
        ``(1) any radioactive''.
            (B) by striking ``material, and (2) the tailings'' and 
        inserting the following: ``material;
        ``(2) the tailings''.
            (C) by striking ``content.'' and inserting the following: 
        ``content;
        ``(3)(A) any discrete source of radium-226 that is produced, 
    extracted, or converted after extraction, before, on, or after the 
    date of enactment of this paragraph for use for a commercial, 
    medical, or research activity; or
        ``(B) any material that--
            ``(i) has been made radioactive by use of a particle 
        accelerator; and
            ``(ii) is produced, extracted, or converted after 
        extraction, before, on, or after the date of enactment of this 
        paragraph for use for a commercial, medical, or research 
        activity; and
        ``(4) any discrete source of naturally occurring radioactive 
    material, other than source material, that--
            ``(A) the Commission, in consultation with the 
        Administrator of the Environmental Protection Agency, the 
        Secretary of Energy, the Secretary of Homeland Security, and 
        the head of any other appropriate Federal agency, determines 
        would pose a threat similar to the threat posed by a discrete 
        source of radium-226 to the public health and safety or the 
        common defense and security; and
            ``(B) before, on, or after the date of enactment of this 
        paragraph is extracted or converted after extraction for use in 
        a commercial, medical, or research activity.''.
        (2) Agreements with governors.--Section 274 b. of the Atomic 
    Energy Act of 1954 (42 U.S.C. 2021(b)) is amended by striking 
    ``State--'' and all that follows through paragraph (4) and 
    inserting the following: ``State:
        ``(1) Byproduct materials (as defined in section 11 e.).
        ``(2) Source materials.
        ``(3) Special nuclear materials in quantities not sufficient to 
    form a critical mass.''.
        (3) Waste disposal.--
            (A) Domestic distribution.--Section 81 of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2111) is amended--
                (i) by striking ``No person may'' and inserting the 
            following:
    ``a. In General.--No person may''.
                (ii) by adding at the end the following:
    ``b. Requirements.--
        ``(1) In general.--Except as provided in paragraph (2), 
    byproduct material, as defined in paragraphs (3) and (4) of section 
    11 e., may only be transferred to and disposed of in a disposal 
    facility that--
            ``(A) is adequate to protect public health and safety; and
            ``(B)(i) is licensed by the Commission; or
            ``(ii) is licensed by a State that has entered into an 
        agreement with the Commission under section 274 b., if the 
        licensing requirements of the State are compatible with the 
        licensing requirements of the Commission.
        ``(2) Effect of subsection.--Nothing in this subsection affects 
    the authority of any entity to dispose of byproduct material, as 
    defined in paragraphs (3) and (4) of section 11 e., at a disposal 
    facility in accordance with any Federal or State solid or hazardous 
    waste law, including the Solid Waste Disposal Act (42 U.S.C. 6901 
    et seq.).
    ``c. Treatment as Low-level Radioactive Waste.--Byproduct material, 
as defined in paragraphs (3) and (4) of section 11 e., disposed of 
under this section shall not be considered to be low-level radioactive 
waste for the purposes of--
        ``(1) section 2 of the Low-Level Radioactive Waste Policy Act 
    (42 U.S.C. 2021b); or
        ``(2) carrying out a compact that is--
            ``(A) entered into in accordance with that Act (42 U.S.C. 
        2021b et seq.); and
            ``(B) approved by Congress.''.
            (B) Definition of low-level radioactive waste.--Section 
        2(9) of the Low-Level Radioactive Waste Policy Act (42 U.S.C. 
        2021b(9)) is amended--
                (i) by redesignating subparagraphs (A) and (B) as 
            clauses (i) and (ii), respectively, and indenting the 
            clauses appropriately;
                (ii) in the matter preceding clause (i) (as 
            redesignated by subparagraph (A)) by striking ``The term'' 
            and inserting the following:
            ``(A) In general.--The term''; and
                (iii) by adding at the end the following:
            ``(B) Exclusion.--The term `low-level radioactive waste' 
        does not include byproduct material (as defined in paragraphs 
        (3) and (4) of section 11 e. of the Atomic Energy Act of 1954 
        (42 U.S.C. 2014(e)).''.
        (4) Final regulations.--
            (A) Regulations.--
                (i) In general.--Not later than 18 months after the 
            date of enactment of this Act, the Commission, after 
            consultation with States and other stakeholders, shall 
            issue final regulations establishing such requirements as 
            the Commission determines to be necessary to carry out this 
            section and the amendments made by this section.
                (ii) Inclusions.--The regulations shall include a 
            definition of the term ``discrete source'' for purposes of 
            paragraphs (3) and (4) of section 11 e. of the Atomic 
            Energy Act of 1954 (42 U.S.C. 2014(e)) (as amended by 
            paragraph (1)).
            (B) Cooperation.--In promulgating regulations under 
        paragraph (1), the Commission shall, to the maximum extent 
        practicable--
                (i) cooperate with States; and
                (ii) use model State standards in existence on the date 
            of enactment of this Act.
            (C) Transition plan.--
                (i) Definition of byproduct material.--In this 
            paragraph, the term ``byproduct material'' has the meaning 
            given the term in paragraphs (3) and (4) of section 11 e. 
            of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)) (as 
            amended by paragraph (1)).
                (ii) Preparation and publication.--To facilitate an 
            orderly transition of regulatory authority with respect to 
            byproduct material, the Commission, in issuing regulations 
            under subparagraph (A), shall prepare and publish a 
            transition plan for--

                    (I) States that have not, before the date on which 
                the plan is published, entered into an agreement with 
                the Commission under section 274 b. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2021(b)); and
                    (II) States that have entered into an agreement 
                with the Commission under that section before the date 
                on which the plan is published.

                (iii) Inclusions.--The transition plan under clause 
            (ii) shall include--

                    (I) a description of the conditions under which a 
                State may exercise authority over byproduct material; 
                and
                    (II) a statement of the Commission that any 
                agreement covering byproduct material, as defined in 
                paragraph (1) or (2) of section 11e. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2014(e)), entered into 
                between the Commission and a State under section 274 b. 
                of that Act (42 U.S.C. 2021(b)) before the date of 
                publication of the transition plan shall be considered 
                to include byproduct material, as defined in paragraph 
                (3) or (4) of section 11e. of that Act (42 U.S.C. 
                2014(e)) (as amended by paragraph (1)), if the Governor 
                of the State certifies to the Commission on the date of 
                publication of the transition plan that--

                        (aa) the State has a program for licensing 
                    byproduct material, as defined in paragraph (3) or 
                    (4) of section 11e. of the Atomic Energy Act of 
                    1954, that is adequate to protect the public health 
                    and safety, as determined by the Commission; and
                        (bb) the State intends to continue to implement 
                    the regulatory responsibility of the State with 
                    respect to the byproduct material.
            (D) Availability of radiopharmaceuticals.--In promulgating 
        regulations under subparagraph (A), the Commission shall 
        consider the impact on the availability of radiopharmaceuticals 
        to--
                (i) physicians; and
                (ii) patients the medical treatment of which relies on 
            radiopharmaceuticals.
        (5) Waivers.--
            (A) In general.--Except as provided in subparagraph (B), 
        the Commission may grant a waiver to any entity of any 
        requirement under this section or an amendment made by this 
        section with respect to a matter relating to byproduct material 
        (as defined in paragraphs (3) and (4) of section 11 e. of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2014(e)) (as amended by 
        paragraph (1))) if the Commission determines that the waiver is 
        in accordance with the protection of the public health and 
        safety and the promotion of the common defense and security.
            (B) Exceptions.--
                (i) In general.--The Commission may not grant a waiver 
            under subparagraph (A) with respect to--

                    (I) any requirement under the amendments made by 
                subsection (c)(1);
                    (II) a matter relating to an importation into, or 
                exportation from, the United States for a period ending 
                after the date that is 1 year after the date of 
                enactment of this Act; or
                    (III) any other matter for a period ending after 
                the date that is 4 years after the date of enactment of 
                this Act.

                (ii) Waivers to states.--The Commission shall terminate 
            any waiver granted to a State under subparagraph (A) if the 
            Commission determines that--

                    (I) the State has entered into an agreement with 
                the Commission under section 274 b. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2021(b));
                    (II) the agreement described in subclause (I) 
                covers byproduct material (as described in paragraph 
                (3) or (4) of section 11 e. of the Atomic Energy Act of 
                1954 (42 U.S.C. 2014(e)) (as amended by paragraph 
                (1))); and
                    (III) the program of the State for licensing such 
                byproduct material is adequate to protect the public 
                health and safety.

            (C) Publication.--The Commission shall publish in the 
        Federal Register a notice of any waiver granted under this 
        subsection.

SEC. 652. FINGERPRINTING AND CRIMINAL HISTORY RECORD CHECKS.

    Section 149 of the Atomic Energy Act of 1954 (42 U.S.C. 2169) is 
amended--
        (1) in subsection a.--
            (A) by striking ``a. The Nuclear'' and all that follows 
        through ``section 147.'' and inserting the following:
    ``a.(1)(A)(i) The Commission shall require each individual or 
entity described in clause (ii) to fingerprint each individual 
described in subparagraph (B) before the individual described in 
subparagraph (B) is permitted access under subparagraph (B).
    ``(ii) The individuals and entities referred to in clause (i) are 
individuals and entities that, on or before the date on which an 
individual is permitted access under subparagraph (B)--
        ``(I) are licensed or certified to engage in an activity 
    subject to regulation by the Commission;
        ``(II) have filed an application for a license or certificate 
    to engage in an activity subject to regulation by the Commission; 
    or
        ``(III) have notified the Commission in writing of an intent to 
    file an application for licensing, certification, permitting, or 
    approval of a product or activity subject to regulation by the 
    Commission.
    ``(B) The Commission shall require to be fingerprinted any 
individual who--
        ``(i) is permitted unescorted access to--
            ``(I) a utilization facility; or
            ``(II) radioactive material or other property subject to 
        regulation by the Commission that the Commission determines to 
        be of such significance to the public health and safety or the 
        common defense and security as to warrant fingerprinting and 
        background checks; or
        ``(ii) is permitted access to safeguards information under 
    section 147.'';
            (B) by striking ``All fingerprints obtained by a licensee 
        or applicant as required in the preceding sentence'' and 
        inserting the following:
    ``(2) All fingerprints obtained by an individual or entity as 
required in paragraph (1)'';
            (C) by striking ``The costs of any identification and 
        records check conducted pursuant to the preceding sentence 
        shall be paid by the licensee or applicant.'' and inserting the 
        following:
    ``(3) The costs of an identification or records check under 
paragraph (2) shall be paid by the individual or entity required to 
conduct the fingerprinting under paragraph (1)(A).''; and
            (D) by striking ``Notwithstanding any other provision of 
        law, the Attorney General may provide all the results of the 
        search to the Commission, and, in accordance with regulations 
        prescribed under this section, the Commission may provide such 
        results to licensee or applicant submitting such 
        fingerprints.'' and inserting the following:
    ``(4) Notwithstanding any other provision of law--
        ``(A) the Attorney General may provide any result of an 
    identification or records check under paragraph (2) to the 
    Commission; and
        ``(B) the Commission, in accordance with regulations prescribed 
    under this section, may provide the results to the individual or 
    entity required to conduct the fingerprinting under paragraph 
    (1)(A).'';
        (2) in subsection c.--
            (A) by striking ``, subject to public notice and comment, 
        regulations--'' and inserting ``requirements--''; and
            (B) in paragraph (2)(B), by striking ``unescorted access to 
        the facility of a licensee or applicant'' and inserting 
        ``unescorted access to a utilization facility, radioactive 
        material, or other property described in subsection a.(1)(B)'';
        (3) by redesignating subsection d. as subsection e.; and
        (4) by inserting after subsection c. the following:
    ``d. The Commission may require a person or individual to conduct 
fingerprinting under subsection a.(1) by authorizing or requiring the 
use of any alternative biometric method for identification that has 
been approved by--
        ``(1) the Attorney General; and
        ``(2) the Commission, by regulation.''.

SEC. 653. USE OF FIREARMS BY SECURITY PERSONNEL.

    The Atomic Energy Act of 1954 is amended by inserting after section 
161 (42 U.S.C. 2201) the following:

``SEC. 161A. USE OF FIREARMS BY SECURITY PERSONNEL.

    ``a. Definitions.--In this section, the terms `handgun', `rifle', 
`shotgun', `firearm', `ammunition', `machinegun', `short-barreled 
shotgun', and `short-barreled rifle' have the meanings given the terms 
in section 921(a) of title 18, United States Code.
    ``b. Authorization.--Notwithstanding subsections (a)(4), (a)(5), 
(b)(2), (b)(4), and (o) of section 922 of title 18, United States Code, 
section 925(d)(3) of title 18, United States Code, section 5844 of the 
Internal Revenue Code of 1986, and any law (including regulations) of a 
State or a political subdivision of a State that prohibits the 
transfer, receipt, possession, transportation, importation, or use of a 
handgun, a rifle, a shotgun, a short-barreled shotgun, a short-barreled 
rifle, a machinegun, a semiautomatic assault weapon, ammunition for any 
such gun or weapon, or a large capacity ammunition feeding device, in 
carrying out the duties of the Commission, the Commission may authorize 
the security personnel of any licensee or certificate holder of the 
Commission (including an employee of a contractor of such a licensee or 
certificate holder) to transfer, receive, possess, transport, import, 
and use 1 or more such guns, weapons, ammunition, or devices, if the 
Commission determines that--
        ``(1) the authorization is necessary to the discharge of the 
    official duties of the security personnel; and
        ``(2) the security personnel--
            ``(A) are not otherwise prohibited from possessing or 
        receiving a firearm under Federal or State laws relating to 
        possession of firearms by a certain category of persons;
            ``(B) have successfully completed any requirement under 
        this section for training in the use of firearms and tactical 
        maneuvers;
            ``(C) are engaged in the protection of--
                ``(i) a facility owned or operated by a licensee or 
            certificate holder of the Commission that is designated by 
            the Commission; or
                ``(ii) radioactive material or other property owned or 
            possessed by a licensee or certificate holder of the 
            Commission, or that is being transported to or from a 
            facility owned or operated by such a licensee or 
            certificate holder, and that has been determined by the 
            Commission to be of significance to the common defense and 
            security or public health and safety; and
            ``(D) are discharging the official duties of the security 
        personnel in transferring, receiving, possessing, transporting, 
        or importing the weapons, ammunition, or devices.
    ``c. Background Checks.--A person that receives, possesses, 
transports, imports, or uses a weapon, ammunition, or a device under 
subsection (b) shall be subject to a background check by the Attorney 
General, based on fingerprints and including a background check under 
section 103(b) of the Brady Handgun Violence Prevention Act (Public Law 
103-159; 18 U.S.C. 922 note) to determine whether the person is 
prohibited from possessing or receiving a firearm under Federal or 
State law.
    ``d. Effective Date.--This section takes effect on the date on 
which guidelines are issued by the Commission, with the approval of the 
Attorney General, to carry out this section.''.

SEC. 654. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 of the Atomic Energy Act of 1954 (42 U.S.C. 2278a) is 
amended--
        (1) by striking ``Sec. 229, Trespass Upon Commission 
    Installations.--'' and inserting the following:

``SEC. 229. TRESPASS ON COMMISSION INSTALLATIONS.'';

        (2) by adjusting the indentations of subsections a., b., and c. 
    so as to reflect proper subsection indentations; and
        (3) in subsection a.--
            (A) in the first sentence, by striking ``a. The'' and 
        inserting the following:
    ``a.(1) The'';
            (B) in the second sentence, by striking ``Every'' and 
        inserting the following:
    ``(2) Every''; and
            (C) in paragraph (1) (as designated by subparagraph (A))--
                (i) by striking ``or in the custody'' and inserting 
            ``in the custody''; and
                (ii) by inserting ``, or subject to the licensing 
            authority of the Commission or certification by the 
            Commission under this Act or any other Act'' before the 
            period.

SEC. 655. SABOTAGE OF NUCLEAR FACILITIES, FUEL, OR DESIGNATED MATERIAL.

    (a) In General.--Section 236a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2284(a)) is amended--
        (1) in paragraph (2), by striking ``storage facility'' and 
    inserting ``treatment, storage, or disposal facility'';
        (2) in paragraph (3)--
            (A) by striking ``such a utilization facility'' and 
        inserting ``a utilization facility licensed under this Act''; 
        and
            (B) by striking ``or'' at the end;
        (3) in paragraph (4)--
            (A) by striking ``facility licensed'' and inserting ``, 
        uranium conversion, or nuclear fuel fabrication facility 
        licensed or certified''; and
            (B) by striking the comma at the end and inserting a 
        semicolon; and
        (4) by inserting after paragraph (4) the following:
        ``(5) any production, utilization, waste storage, waste 
    treatment, waste disposal, uranium enrichment, uranium conversion, 
    or nuclear fuel fabrication facility subject to licensing or 
    certification under this Act during construction of the facility, 
    if the destruction or damage caused or attempted to be caused could 
    adversely affect public health and safety during the operation of 
    the facility;
        ``(6) any primary facility or backup facility from which a 
    radiological emergency preparedness alert and warning system is 
    activated; or
        ``(7) any radioactive material or other property subject to 
    regulation by the Commission that, before the date of the offense, 
    the Commission determines, by order or regulation published in the 
    Federal Register, is of significance to the public health and 
    safety or to common defense and security;''.
    (b) Conforming Amendment.--Section 236 of the Atomic Energy Act of 
1954 (42 U.S.C. 2284) is amended by striking ``intentionally and 
willfully'' each place it appears and inserting ``knowingly''.

SEC. 656. SECURE TRANSFER OF NUCLEAR MATERIALS.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201-2210b) (as amended by section 651(d)(1)) is amended by 
adding at the end the following new section:

``SEC. 170I. SECURE TRANSFER OF NUCLEAR MATERIALS.

    ``a. The Commission shall establish a system to ensure that 
materials described in subsection b., when transferred or received in 
the United States by any party pursuant to an import or export license 
issued pursuant to this Act, are accompanied by a manifest describing 
the type and amount of materials being transferred or received. Each 
individual receiving or accompanying the transfer of such materials 
shall be subject to a security background check conducted by 
appropriate Federal entities.
    ``b. Except as otherwise provided by the Commission by regulation, 
the materials referred to in subsection a. are byproduct materials, 
source materials, special nuclear materials, high-level radioactive 
waste, spent nuclear fuel, transuranic waste, and low-level radioactive 
waste (as defined in section 2(16) of the Nuclear Waste Policy Act of 
1982 (42 U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, and from time to time thereafter as it considers 
necessary, the Nuclear Regulatory Commission shall issue regulations 
identifying radioactive materials or classes of individuals that, 
consistent with the protection of public health and safety and the 
common defense and security, are appropriate exceptions to the 
requirements of section 170D of the Atomic Energy Act of 1954, as added 
by subsection (a) of this section.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the issuance of regulations under subsection (b), 
except that the background check requirement shall become effective on 
a date established by the Commission.
    (d) Effect on Other Law.--Nothing in this section or the amendment 
made by this section shall waive, modify, or affect the application of 
chapter 51 of title 49, United States Code, part A of subtitle V of 
title 49, United States Code, part B of subtitle VI of title 49, United 
States Code, and title 23, United States Code.
    (e) Conforming Amendment.--The table of sections of the Atomic 
Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by subsection 
(a)) is amended by adding at the end of the items relating to chapter 
14 the following:

``Sec. 170I. Secure transfer of nuclear materials.''.

SEC. 657. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.

    Before issuing a license for a utilization facility, the Nuclear 
Regulatory Commission shall consult with the Department of Homeland 
Security concerning the potential vulnerabilities of the location of 
the proposed facility to terrorist attack.

                     TITLE VII--VEHICLES AND FUELS
                     Subtitle A--Existing Programs

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

    Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act 
(42 U.S.C. 6374(a)(3)(E)) is amended to read as follows:
    ``(E)(i) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary determines 
that an agency qualifies for a waiver of such requirement for vehicles 
operated by the agency in a particular geographic area in which--
        ``(I) the alternative fuel otherwise required to be used in the 
    vehicle is not reasonably available to retail purchasers of the 
    fuel, as certified to the Secretary by the head of the agency; or
        ``(II) the cost of the alternative fuel otherwise required to 
    be used in the vehicle is unreasonably more expensive compared to 
    gasoline, as certified to the Secretary by the head of the agency.
    ``(ii) The Secretary shall monitor compliance with this 
subparagraph by all such fleets and shall report annually to Congress 
on the extent to which the requirements of this subparagraph are being 
achieved. The report shall include information on annual reductions 
achieved from the use of petroleum-based fuels and the problems, if 
any, encountered in acquiring alternative fuels.''.

SEC. 702. INCREMENTAL COST ALLOCATION.

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

SEC. 703. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

    (a) Alternative Compliance.--Title V of the Energy Policy Act of 
1992 (42 U.S.C. 13251 et seq.) is amended--
        (1) by redesignating section 514 (42 U.S.C. 13264) as section 
    515; and
        (2) by inserting after section 513 (42 U.S.C. 13263) the 
    following:

``SEC. 514. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any covered person subject to 
section 501 and any State subject to section 507(o) may petition the 
Secretary for a waiver of the applicable requirements of section 501 or 
507(o).
    ``(b) Grant of Waiver.--The Secretary shall grant a waiver of the 
requirements of section 501 or 507(o) on a showing that the fleet 
owned, operated, leased, or otherwise controlled by the State or 
covered person--
        ``(1) will achieve a reduction in the annual consumption of 
    petroleum fuels by the fleet equal to--
            ``(A) the reduction in consumption of petroleum that would 
        result from 100 percent cumulative compliance with the fuel use 
        requirements of section 501; or
            ``(B) in the case of an entity covered under section 
        507(o), a reduction equal to the annual consumption by the 
        State entity of alternative fuels if all of the cumulative 
        alternative fuel vehicles of the State entity given credit 
        under section 508 were to use alternative fuel 100 percent of 
        the time; and
        ``(2) is in compliance with all applicable vehicle emission 
    standards established by the Administrator of the Environmental 
    Protection Agency under the Clean Air Act (42 U.S.C. 7401 et seq.).
    ``(c) Reporting Requirement.--Not later than December 31 of a model 
year, any State or covered person granted a waiver under this section 
for the preceding model year shall submit to the Secretary an annual 
report that--
        ``(1) certifies the quantity of the petroleum motor fuel 
    reduction of the State or covered person during the preceding model 
    year; and
        ``(2) projects the baseline quantity of the petroleum motor 
    fuel reduction of the State or covered person during the following 
    model year.
    ``(d) Revocation of Waiver.--If a State or covered person that 
receives a waiver under this section fails to comply with this section, 
the Secretary--
        ``(1) shall revoke the waiver; and
        ``(2) may impose on the State or covered person a penalty under 
    section 512.''.
    (b) Conforming Amendment.--Section 511 of the Energy Policy Act of 
1992 (42 U.S.C. 13261) is amended by striking ``or 507'' and inserting 
``507, or 514''.
    (c) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by 
striking the item relating to section 514 and inserting the following:

``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.''.

SEC. 704. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall complete a study to 
determine the effect that titles III, IV, and V of the Energy Policy 
Act of 1992 (42 U.S.C. 13211 et seq.) have had on--
        (1) the development of alternative fueled vehicle technology;
        (2) the availability of that technology in the market; and
        (3) the cost of alternative fueled vehicles.
    (b) Topics.--As part of the study under subsection (a), the 
Secretary shall specifically identify--
        (1) the number of alternative fueled vehicles acquired by 
    fleets or covered persons required to acquire alternative fueled 
    vehicles;
        (2) the quantity, by type, of alternative fuel actually used in 
    alternative fueled vehicles acquired by fleets or covered persons;
        (3) the quantity of petroleum displaced by the use of 
    alternative fuels in alternative fueled vehicles acquired by fleets 
    or covered persons;
        (4) the direct and indirect costs of compliance with 
    requirements under titles III, IV, and V of the Energy Policy Act 
    of 1992 (42 U.S.C. 13211 et seq.), including--
            (A) vehicle acquisition requirements imposed on fleets or 
        covered persons;
            (B) administrative and recordkeeping expenses;
            (C) fuel and fuel infrastructure costs;
            (D) associated training and employee expenses; and
            (E) any other factors or expenses the Secretary determines 
        to be necessary to compile reliable estimates of the overall 
        costs and benefits of complying with programs under those 
        titles for fleets, covered persons, and the national economy;
        (5) the existence of obstacles preventing compliance with 
    vehicle acquisition requirements and increased use of alternative 
    fuel in alternative fueled vehicles acquired by fleets or covered 
    persons; and
        (6) the projected impact of amendments to the Energy Policy Act 
    of 1992 made by this title.
    (c) Report.--Upon completion of the study under this section, the 
Secretary shall submit to Congress a report that describes the results 
of the study and includes any recommendations of the Secretary for 
legislative or administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV, and V of the Energy Policy 
Act of 1992 (42 U.S.C. 13211 et seq.).

SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUELED VEHICLE 
              PURCHASING REQUIREMENTS.

    Section 310(b)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13218(b)(1)) is amended by striking ``1 year after the date of 
enactment of this subsection'' and inserting ``February 15, 2006''.

SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION 
              INITIATIVE.

    (a) Definitions.--In this section:
        (1) Eligible entity.--The term ``eligible entity'' means--
            (A) a for-profit corporation;
            (B) a nonprofit corporation; or
            (C) an institution of higher education.
        (2) Program.--The term ``program'' means a program established 
    under subsection (b).
    (b) Establishment.--The Secretary shall establish a program to 
improve technologies for the commercialization of--
        (1) a combination hybrid/flexible fuel vehicle; or
        (2) a plug-in hybrid/flexible fuel vehicle.
    (c) Grants.--In carrying out the program, the Secretary shall 
provide grants that give preference to proposals that--
        (1) achieve the greatest reduction in miles per gallon of 
    petroleum fuel consumption;
        (2) achieve not less than 250 miles per gallon of petroleum 
    fuel consumption; and
        (3) have the greatest potential of commercialization to the 
    general public within 5 years.
    (d) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall publish in the Federal 
Register procedures to verify--
        (1) the hybrid/flexible fuel vehicle technologies to be 
    demonstrated; and
        (2) that grants are administered in accordance with this 
    section.
    (e) Report.--Not later than 260 days after the date of enactment of 
this Act, and annually thereafter, the Secretary shall submit to 
Congress a report that--
        (1) identifies the grant recipients;
        (2) describes the technologies to be funded under the program;
        (3) assesses the feasibility of the technologies described in 
    paragraph (2) in meeting the goals described in subsection (c);
        (4) identifies applications submitted for the program that were 
    not funded; and
        (5) makes recommendations for Federal legislation to achieve 
    commercialization of the technology demonstrated.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, to remain available until 
expended--
        (1) $3,000,000 for fiscal year 2006;
        (2) $7,000,000 for fiscal year 2007;
        (3) $10,000,000 for fiscal year 2008; and
        (4) $20,000,000 for fiscal year 2009.

SEC. 707. EMERGENCY EXEMPTION.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended in paragraph (9)(E) by inserting before the semicolon at the 
end ``, including vehicles directly used in the emergency repair of 
transmission lines and in the restoration of electricity service 
following power outages, as determined by the Secretary''.

  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

    The Secretary shall accelerate efforts directed toward the 
improvement of batteries and other rechargeable energy storage systems, 
power electronics, hybrid systems integration, and other technologies 
for use in hybrid vehicles.

SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.

    (a) Program.--The Secretary shall establish a program to encourage 
domestic production and sales of efficient hybrid and advanced diesel 
vehicles. The program shall include grants to automobile manufacturers 
to encourage domestic production of efficient hybrid and advanced 
diesel vehicles.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section such sums 
as may be necessary for each of the fiscal years 2006 through 2015.

                       PART 2--ADVANCED VEHICLES

SEC. 721. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive grant pilot 
program (referred to in this part as the ``pilot program''), to be 
administered through the Clean Cities Program of the Department, to 
provide not more than 30 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 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; and
                (ii) include--

                    (I) a description of the project proposed in the 
                application, including how the project meets the 
                requirements of this part;
                    (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 
                part; 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 part 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 
    $15,000,000 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) Definitions.--For purposes of carrying out the pilot program, 
the Secretary shall issue regulations defining any term, as the 
Secretary determines to be necessary.

SEC. 722. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 60 days after the date on which 
grants are awarded under this part, the Secretary shall submit to 
Congress a report containing--
        (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. 723. AUTHORIZATION OF APPROPRIATIONS.

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

                        PART 3--FUEL CELL BUSES

SEC. 731. 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.

                     Subtitle C--Clean School Buses

SEC. 741. CLEAN SCHOOL BUS PROGRAM.

    (a) Definitions.--In this section:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) Alternative fuel.--The term ``alternative fuel'' means--
            (A) liquefied natural gas, compressed natural gas, 
        liquefied petroleum gas, hydrogen, or propane;
            (B) methanol or ethanol at no less than 85 percent by 
        volume; or
            (C) biodiesel conforming with standards published by the 
        American Society for Testing and Materials as of the date of 
        enactment of this Act.
        (3) Clean school bus.--The term ``clean school bus'' means a 
    school bus with a gross vehicle weight of greater than 14,000 
    pounds that--
            (A) is powered by a heavy duty engine; and
            (B) is operated solely on an alternative fuel or ultra-low 
        sulfur diesel fuel.
        (4) Eligible recipient.--
            (A) In general.--Subject to subparagraph (B), the term 
        ``eligible recipient'' means--
                (i) 1 or more local or State governmental entities 
            responsible for--

                    (I) providing school bus service to 1 or more 
                public school systems; or
                    (II) the purchase of school buses;

                (ii) 1 or more contracting entities that provide school 
            bus service to 1 or more public school systems; or
                (iii) a nonprofit school transportation association.
            (B) Special requirements.--In the case of eligible 
        recipients identified under clauses (ii) and (iii), the 
        Administrator shall establish timely and appropriate 
        requirements for notice and may establish timely and 
        appropriate requirements for approval by the public school 
        systems that would be served by buses purchased or retrofit 
        using grant funds made available under this section.
        (5) Retrofit technology.--The term ``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.
        (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.
    (b) Program for Retrofit or Replacement of Certain Existing School 
Buses With Clean School Buses.--
        (1) Establishment.--
            (A) In general.--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 recipients for the replacement, 
        or retrofit (including repowering, aftertreatment, and 
        remanufactured engines) of, certain existing school buses.
            (B) Balancing.--In awarding grants under this section, the 
        Administrator shall, to the maximum extent practicable, achieve 
        an appropriate balance between awarding grants--
                (i) to replace school buses; and
                (ii) to install retrofit technologies.
        (2) Priority of grant applications.--
            (A) Replacement.--In the case of grant applications to 
        replace school buses, the Administrator shall give priority to 
        applicants that propose to replace school buses manufactured 
        before model year 1977.
            (B) Retrofitting.--In the case of grant applications to 
        retrofit school buses, the Administrator shall give priority to 
        applicants that propose to retrofit school buses manufactured 
        in or after model year 1991.
        (3) Use of school bus fleet.--
            (A) In general.--All school buses acquired or retrofitted 
        with funds provided under this section shall be operated as 
        part of the school bus fleet for which the grant was made for 
        not less than 5 years.
            (B) Maintenance, operation, and fueling.--New school buses 
        and retrofit technology shall be maintained, operated, and 
        fueled according to manufacturer recommendations or State 
        requirements.
        (4) Retrofit grants.--The Administrator may award grants for up 
    to 100 percent of the retrofit technologies and installation costs.
        (5) Replacement grants.--
            (A) Eligibility for 50 percent grants.--The Administrator 
        may award grants for replacement of school buses in the amount 
        of up to one-half of the acquisition costs (including fueling 
        infrastructure) for--
                (i) clean school buses with engines manufactured in 
            model year 2005 or 2006 that emit not more than--

                    (I) 1.8 grams per brake horsepower-hour of non-
                methane hydrocarbons and oxides of nitrogen; and
                    (II) .01 grams per brake horsepower-hour of 
                particulate matter; or

                (ii) clean school buses with engines manufactured in 
            model year 2007, 2008, or 2009 that satisfy regulatory 
            requirements established by the Administrator for emissions 
            of oxides of nitrogen and particulate matter to be 
            applicable for school buses manufactured in model year 
            2010.
            (B) Eligibility for 25 percent grants.--The Administrator 
        may award grants for replacement of school buses in the amount 
        of up to one-fourth of the acquisition costs (including fueling 
        infrastructure) for--
                (i) clean school buses with engines manufactured in 
            model year 2005 or 2006 that emit not more than--

                    (I) 2.5 grams per brake horsepower-hour of non-
                methane hydrocarbons and oxides of nitrogen; and
                    (II) .01 grams per brake horsepower-hour of 
                particulate matter; or

                (ii) clean school buses with engines manufactured in 
            model year 2007 or thereafter that satisfy regulatory 
            requirements established by the Administrator for emissions 
            of oxides of nitrogen and particulate matter from school 
            buses manufactured in that model year.
        (6) Ultra-low sulfur diesel fuel.--
            (A) In general.--In the case of a grant recipient receiving 
        a grant for the acquisition of ultra-low sulfur diesel fuel 
        school buses with engines manufactured in model year 2005 or 
        2006, the grant recipient shall provide, to the satisfaction of 
        the Administrator--
                (i) documentation that diesel fuel containing sulfur at 
            not more than 15 parts per million is available for 
            carrying out the purposes of the grant; and
                (ii) a commitment by the applicant to use that fuel in 
            carrying out the purposes of the grant.
        (7) Deployment and distribution.--The Administrator shall, to 
    the maximum extent practicable--
            (A) achieve nationwide deployment of clean school buses 
        through the program under this section; and
            (B) ensure a broad geographic distribution of grant awards, 
        with no State receiving more than 10 percent of the grant 
        funding made available under this section during a fiscal year.
        (8) Annual report.--
            (A) In general.--Not later than January 31 of each year, 
        the Administrator shall submit to Congress a report that--
                (i) evaluates the implementation of this section; and
                (ii) describes--

                    (I) the total number of grant applications 
                received;
                    (II) the number and types of alternative fuel 
                school buses, ultra-low sulfur diesel fuel school 
                buses, and retrofitted buses requested in grant 
                applications;
                    (III) grants awarded and the criteria used to 
                select the grant recipients;
                    (IV) certified engine emission levels of all buses 
                purchased or retrofitted under this section;
                    (V) an evaluation of the in-use emission level of 
                buses purchased or retrofitted under this section; and
                    (VI) any other information the Administrator 
                considers appropriate.

    (c) Education.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Administrator shall develop an education 
    outreach program to promote and explain the grant program.
        (2) Coordination with stakeholders.--The outreach program shall 
    be designed and conducted in conjunction with national school bus 
    transportation associations and other stakeholders.
        (3) Components.--The outreach program shall--
            (A) inform potential grant recipients on the process of 
        applying for grants;
            (B) describe the available technologies and the benefits of 
        the technologies;
            (C) explain the benefits of participating in the grant 
        program; and
            (D) include, as appropriate, information from the annual 
        report required under subsection (b)(8).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section, to remain 
available until expended--
        (1) $55,000,000 for each of fiscal years 2006 and 2007; and
        (2) such sums as are necessary for each of fiscal years 2008, 
    2009, and 2010.

SEC. 742. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.

    (a) Establishment.--The Administrator, in consultation with the 
Secretary, shall establish a program for awarding grants on a 
competitive basis to public agencies and entities for fleet 
modernization programs including installation of retrofit technologies 
for diesel trucks.
    (b) Eligible Recipients.--A grant shall be awarded under this 
section only to a State or local government or an agency or 
instrumentality of a State or local government or of two or more State 
or local governments who will allocate funds, with preference to ports 
and other major hauling operations.
    (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, and/or particulate 
        matter per proposal or per truck; or
            (B) involve the use of Environmental Protection Agency or 
        California Air Resources Board verified emissions control 
        retrofit technology on diesel trucks that operate solely on 
        ultra-low sulfur diesel fuel after September 2006.
    (d) Conditions of Grant.--A grant shall be provided under this 
section on the conditions that--
        (1) trucks which are replacing scrapped trucks and 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 1998 and before; and
            (C) will be used for the transportation of cargo goods 
        especially in port areas or used in goods movement and major 
        hauling operations;
        (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 50 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, from any source other than this 
    section.
    (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--
        (1) make grants pursuant to this section;
        (2) verify that trucks 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 after September 2006; and
        (3) verify 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, to remain 
available until expended the following sums:
        (1) $20,000,000 for fiscal year 2006.
        (2) $35,000,000 for fiscal year 2007.
        (3) $45,000,000 for fiscal year 2008.
        (4) Such sums as are necessary for each of fiscal years 2009 
    and 2010.

SEC. 743. 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 2009.

                       Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall (in cooperation with the 
Secretary of Transportation and the Administrator of the Environmental 
Protection Agency) establish a cost-shared, public-private research 
partnership involving the Federal Government, railroad carriers, 
locomotive manufacturers and equipment suppliers, and the Association 
of American Railroads, to develop and demonstrate railroad locomotive 
technologies that increase fuel economy, reduce emissions, and lower 
costs of operation.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
        (1) $15,000,000 for fiscal year 2006;
        (2) $20,000,000 for fiscal year 2007; and
        (3) $30,000,000 for fiscal year 2008.

SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall submit to Congress a report on the experience 
of the Administrator with the trading of mobile source emission 
reduction credits for use by owners and operators of stationary source 
emission sources to meet emission offset requirements within a 
nonattainment area.
    (b) Contents.--The report shall describe--
        (1) projects approved by the Administrator that include the 
    trading of mobile source emission reduction credits for use by 
    stationary sources in complying with offset requirements, including 
    a description of--
            (A) project and stationary sources location;
            (B) volumes of emissions offset and traded;
            (C) the sources of mobile emission reduction credits; and
            (D) if available, the cost of the credits;
        (2) the significant issues identified by the Administrator in 
    consideration and approval of trading in the projects;
        (3) the requirements for monitoring and assessing the air 
    quality benefits of any approved project;
        (4) the statutory authority on which the Administrator has 
    based approval of the projects;
        (5) an evaluation of how the resolution of issues in approved 
    projects could be used in other projects and whether the emission 
    reduction credits may be considered to be additional in relation to 
    other requirements;
        (6) the potential, for attainment purposes, of emission 
    reduction credits relating to transit and land use policies; and
        (7) any other issues that the Administrator considers relevant 
    to the trading and generation of mobile source emission reduction 
    credits for use by stationary sources or for other purposes.

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

    (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
and the Administrator of the Environmental Protection Agency shall 
jointly initiate a study to identify--
        (1) the impact of aircraft emissions on air quality in 
    nonattainment areas;
        (2) ways to promote fuel conservation measures for aviation to 
    enhance fuel efficiency and reduce emissions; and
        (3) opportunities to reduce air traffic inefficiencies that 
    increase fuel burn and emissions.
    (b) Focus.--The study under subsection (a) shall focus on how air 
traffic management inefficiencies, such as aircraft idling at airports, 
result in unnecessary fuel burn and air emissions.
    (c) Report.--Not later than 1 year after the date of the initiation 
of the study under subsection (a), the Administrator of the Federal 
Aviation Administration and the Administrator of the Environmental 
Protection Agency shall jointly submit to the Committee on Energy and 
Commerce and the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Environment and Public 
Works and the Committee on Commerce, Science, and Transportation of the 
Senate a report that--
        (1) describes the results of the study; and
        (2) includes any recommendations on ways in which unnecessary 
    fuel use and emissions affecting air quality may be reduced--
            (A) without adversely affecting safety and security and 
        increasing individual aircraft noise; and
            (B) while taking into account all aircraft emissions and 
        the impact of those emissions on the human health.
    (d) Risk Assessments.--Any assessment of risk to human health and 
the environment prepared by the Administrator of the Federal Aviation 
Administration or the Administrator of the Environmental Protection 
Agency to support the report in this section shall be based on sound 
and objective scientific practices, shall consider the best available 
science, and shall present the weight of the scientific evidence 
concerning such risks.

SEC. 754. DIESEL FUELED VEHICLES.

    (a) Definition of Tier 2 Emission Standards.--In this section, the 
term ``tier 2 emission standards'' means the motor vehicle emission 
standards that apply to passenger cars, light trucks, and larger 
passenger vehicles manufactured after the 2003 model year, as issued on 
February 10, 2000, by the Administrator of the Environmental Protection 
Agency under sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521, 
7545).
    (b) Diesel Combustion and After-Treatment Technologies.--The 
Secretary shall accelerate efforts to improve diesel combustion and 
after-treatment technologies for use in diesel fueled motor vehicles.
    (c) Goals.--The Secretary shall carry out subsection (b) with a 
view toward achieving the following goals:
        (1) Developing and demonstrating diesel technologies that, not 
    later than 2010, meet the following standards:
            (A) Tier 2 emission standards.
            (B) The heavy-duty emissions standards of 2007 that are 
        applicable to heavy-duty vehicles under regulations issued by 
        the Administrator of the Environmental Protection Agency as of 
        the date of enactment of this Act.
        (2) Developing the next generation of low-emission, high 
    efficiency diesel engine technologies, including homogeneous charge 
    compression ignition technology.

SEC. 755. CONSERVE BY BICYCLING PROGRAM.

    (a) Definitions.--In this section:
        (1) Program.--The term ``program'' means the Conserve by 
    Bicycling Program established by subsection (b).
        (2) Secretary.--The term ``Secretary'' means the Secretary of 
    Transportation.
    (b) Establishment.--There is established within the Department of 
Transportation a program to be known as the ``Conserve by Bicycling 
Program''.
    (c) Projects.--
        (1) In general.--In carrying out the program, the Secretary 
    shall establish not more than 10 pilot projects that are--
            (A) dispersed geographically throughout the United States; 
        and
            (B) designed to conserve energy resources by encouraging 
        the use of bicycles in place of motor vehicles.
        (2) Requirements.--A pilot project described in paragraph (1) 
    shall--
            (A) use education and marketing to convert motor vehicle 
        trips to bicycle trips;
            (B) document project results and energy savings (in 
        estimated units of energy conserved);
            (C) facilitate partnerships among interested parties in at 
        least 2 of the fields of--
                (i) transportation;
                (ii) law enforcement;
                (iii) education;
                (iv) public health;
                (v) environment; and
                (vi) energy;
            (D) maximize bicycle facility investments;
            (E) demonstrate methods that may be used in other regions 
        of the United States; and
            (F) facilitate the continuation of ongoing programs that 
        are sustained by local resources.
        (3) Cost sharing.--At least 20 percent of the cost of each 
    pilot project described in paragraph (1) shall be provided from 
    non-Federal sources.
    (d) Energy and Bicycling Research Study.--
        (1) In general.--Not later than 2 years after the date of 
    enactment of this Act, the Secretary shall enter into a contract 
    with the National Academy of Sciences for, and the National Academy 
    of Sciences shall conduct and submit to Congress a report on, a 
    study on the feasibility of converting motor vehicle trips to 
    bicycle trips.
        (2) Components.--The study shall--
            (A) document the results or progress of the pilot projects 
        under subsection (c);
            (B) determine the type and duration of motor vehicle trips 
        that people in the United States may feasibly make by bicycle, 
        taking into consideration factors such as--
                (i) weather;
                (ii) land use and traffic patterns;
                (iii) the carrying capacity of bicycles; and
                (iv) bicycle infrastructure;
            (C) determine any energy savings that would result from the 
        conversion of motor vehicle trips to bicycle trips;
            (D) include a cost-benefit analysis of bicycle 
        infrastructure investments; and
            (E) include a description of any factors that would 
        encourage more motor vehicle trips to be replaced with bicycle 
        trips.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $6,200,000, to 
remain available until expended, of which--
        (1) $5,150,000 shall be used to carry out pilot projects 
    described in subsection (c);
        (2) $300,000 shall be used by the Secretary to coordinate, 
    publicize, and disseminate the results of the program; and
        (3) $750,000 shall be used to carry out subsection (d).

SEC. 756. REDUCTION OF ENGINE IDLING.

    (a) Definitions.--In this section:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) Advanced truck stop electrification system.--The term 
    ``advanced truck stop electrification system'' means a stationary 
    system that delivers heat, air conditioning, electricity, or 
    communications, and is capable of providing verifiable and 
    auditable evidence of use of those services, to a heavy-duty 
    vehicle and any occupants of the heavy-duty vehicle with or without 
    relying on components mounted onboard the heavy-duty vehicle for 
    delivery of those services.
        (3) Auxiliary power unit.--The term ``auxiliary power unit'' 
    means an integrated system that--
            (A) provides heat, air conditioning, engine warming, or 
        electricity to components on a heavy-duty vehicle; and
            (B) is certified by the Administrator under part 89 of 
        title 40, Code of Federal Regulations (or any successor 
        regulation), as meeting applicable emission standards.
        (4) Heavy-duty vehicle.--The term ``heavy-duty vehicle'' means 
    a vehicle that--
            (A) has a gross vehicle weight rating greater than 8,500 
        pounds; and
            (B) is powered by a diesel engine.
        (5) Idle reduction technology.--The term ``idle reduction 
    technology'' means an advanced truck stop electrification system, 
    auxiliary power unit, or other technology that--
            (A) is used to reduce long-duration idling; and
            (B) allows for the main drive engine or auxiliary 
        refrigeration engine to be shut down.
        (6) Energy conservation technology.--the term ``energy 
    conservation technology'' means any device, system of devices, or 
    equipment that improves the fuel economy.
        (7) Long-duration idling.--
            (A) In general.--The term ``long-duration idling'' means 
        the operation of a main drive engine or auxiliary refrigeration 
        engine, for a period greater than 15 consecutive minutes, at a 
        time at which the main drive engine is not engaged in gear.
            (B) Exclusions.--The term ``long-duration idling'' does not 
        include the operation of a main drive engine or auxiliary 
        refrigeration engine during a routine stoppage associated with 
        traffic movement or congestion.
    (b) Idle Reduction Technology Benefits, Programs, and Studies.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Administrator shall--
            (A)(i) commence a review of the mobile source air emission 
        models of the Environmental Protection Agency used under the 
        Clean Air Act (42 U.S.C. 7401 et seq.) to determine whether the 
        models accurately reflect the emissions resulting from long-
        duration idling of heavy-duty vehicles and other vehicles and 
        engines; and
            (ii) update those models as the Administrator determines to 
        be appropriate; and
            (B)(i) commence a review of the emission reductions 
        achieved by the use of idle reduction technology; and
            (ii) complete such revisions of the regulations and 
        guidance of the Environmental Protection Agency as the 
        Administrator determines to be appropriate.
        (2) Deadline for completion.--Not later than 180 days after the 
    date of enactment of this Act, the Administrator shall--
            (A) complete the reviews under subparagraphs (A)(i) and 
        (B)(i) of paragraph (1); and
            (B) prepare and make publicly available one or more reports 
        on the results of the reviews.
        (3) Discretionary inclusions.--The reviews under subparagraphs 
    (A)(i) and (B)(i) of paragraph (1) and the reports under paragraph 
    (2)(B) may address the potential fuel savings resulting from use of 
    idle reduction technology.
        (4) Idle reduction and energy conservation deployment 
    program.--
            (A) Establishment.--
                (i) In general.--Not later than 90 days after the date 
            of enactment of this Act, the Administrator, in 
            consultation with the Secretary of Transportation shall, 
            through the Environmental Protection Agency's SmartWay 
            Transport Partnership, establish a program to support 
            deployment of idle reduction and energy conservation 
            technologies.
                (ii) Priority.--The Administrator shall give priority 
            to the deployment of idle reduction and energy conservation 
            technologies based on the costs and beneficial effects on 
            air quality and ability to lessen the emission of criteria 
            air pollutants.
            (B) Funding.--
                (i) Authorization of appropriations.--There are 
            authorized to be appropriated to the Administrator to carry 
            out subparagraph (A) for the purpose of reducing extended 
            idling from heavy-duty vehicles $19,500,000 for fiscal year 
            2006, $30,000,000 for fiscal year 2007, and $45,000,000 for 
            fiscal year 2008.
                (ii) Locomotives.--There are authorized to be 
            appropriated to the administrator to carry out subparagraph 
            (A) for the purpose of reducing extended idling from 
            locomotives $10,000,000 for fiscal year 2006, $15,000,000 
            for fiscal year 2007, and $20,000,000 for fiscal year 2008.
                (iii) Cost sharing.--Subject to clause (iv), the 
            Administrator shall require at least 50 percent of the 
            costs directly and specifically related to any project 
            under this section to be provided from non-Federal sources.
                (iv) Necessary and appropriate reductions.--The 
            Administrator may reduce the non-Federal requirement under 
            clause (iii) if the Administrator determines that the 
            reduction is necessary and appropriate to meet the 
            objectives of this section.
        (5) Idling location study.--
            (A) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator, in consultation with 
        the Secretary of Transportation, shall commence a study to 
        analyze all locations at which heavy-duty vehicles stop for 
        long-duration idling, including--
                (i) truck stops;
                (ii) rest areas;
                (iii) border crossings;
                (iv) ports;
                (v) transfer facilities; and
                (vi) private terminals.
            (B) Deadline for completion.--Not later than 180 days after 
        the date of enactment of this Act, the Administrator shall--
                (i) complete the study under subparagraph (A); and
                (ii) prepare and make publicly available one or more 
            reports of the results of the study.
    (c) Vehicle Weight Exemption.--Section 127(a) of title 23, United 
States Code, is amended--
        (1) by designating the first through eleventh sentences as 
    paragraphs (1) through (11), respectively; and
        (2) by adding at the end the following:
        ``(12) Heavy duty vehicles.--
            ``(A) In general.--Subject to subparagraphs (B) and (C), in 
        order to promote reduction of fuel use and emissions because of 
        engine idling, the maximum gross vehicle weight limit and the 
        axle weight limit for any heavy-duty vehicle equipped with an 
        idle reduction technology shall be increased by a quantity 
        necessary to compensate for the additional weight of the idle 
        reduction system.
            ``(B) Maximum weight increase.--The weight increase under 
        subparagraph (A) shall be not greater than 400 pounds.
            ``(C) Proof.--On request by a regulatory agency or law 
        enforcement agency, the vehicle operator shall provide proof 
        (through demonstration or certification) that--
                ``(i) the idle reduction technology is fully functional 
            at all times; and
                ``(ii) the 400-pound gross weight increase is not used 
            for any purpose other than the use of idle reduction 
            technology described in subparagraph (A).''.
    (d) Report.--Not later than 60 days after the date on which funds 
are initially awarded under this section, and on an annual basis 
thereafter, the Administrator shall submit to Congress a report 
containing--
        (1) an identification of the grant recipients, a description of 
    the projects to be funded and the amount of funding provided; and
        (2) an identification of all other applicants that submitted 
    applications under the program.

SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.

    (a) In General.--Not later that 180 days after the date of 
enactment of this Act, the Secretary shall initiate a partnership with 
diesel engine, diesel fuel injection system, and diesel vehicle 
manufacturers and diesel and biodiesel fuel providers, to include 
biodiesel testing in advanced diesel engine and fuel system technology.
    (b) Scope.--The program shall provide for testing to determine the 
impact of biodiesel from different sources on current and future 
emission control technologies, with emphasis on--
        (1) the impact of biodiesel on emissions warranty, in-use 
    liability, and antitampering provisions;
        (2) the impact of long-term use of biodiesel on engine 
    operations;
        (3) the options for optimizing these technologies for both 
    emissions and performance when switching between biodiesel and 
    diesel fuel; and
        (4) the impact of using biodiesel in these fueling systems and 
    engines when used as a blend with 2006 Environmental Protection 
    Agency-mandated diesel fuel containing a maximum of 15-parts-per-
    million sulfur content.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall provide an interim report to Congress on 
the findings of the program, including a comprehensive analysis of 
impacts from biodiesel on engine operation for both existing and 
expected future diesel technologies, and recommendations for ensuring 
optimal emissions reductions and engine performance with biodiesel.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of fiscal years 2006 through 2010 to 
carry out this section.
    (e) Definition.--For purposes of this section, the term 
``biodiesel'' means a diesel fuel substitute produced from nonpetroleum 
renewable resources that meets the registration requirements for fuels 
and fuel additives established by the Environmental Protection Agency 
under section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets 
the American Society for Testing and Materials D6751-02a Standard 
Specification for Biodiesel Fuel (B100) Blend Stock for Distillate 
Fuels.

SEC. 758. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) Ultra-Efficient Engine Technology Partnership.--The Secretary 
shall enter into a cooperative agreement with the National Aeronautics 
and Space Administration for the development of ultra-efficient engine 
technology for aircraft.
    (b) Performance Objective.--The Secretary shall establish the 
following performance objectives for the program set forth in 
subsection (a):
        (1) A fuel efficiency increase of at least 10 percent.
        (2) A reduction in the impact of landing and takeoff nitrogen 
    oxides emissions on local air quality of 70 percent.
        (3) Exploring advanced concepts, alternate propulsion, and 
    power configurations, including hybrid fuel cell powered systems.
        (4) Exploring the use of alternate fuel in conventional or 
    nonconventional turbine-based systems.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $50,000,000 
for each of the fiscal years 2006, 2007, 2008, 2009, and 2010.

SEC. 759. FUEL ECONOMY INCENTIVE REQUIREMENTS.

    Section 32905 of title 49, United States Code, is amended by adding 
the following new subsection at the end thereof:
    ``(h) Fuel Economy Incentive Requirements.--In order for any model 
of dual fueled automobile to be eligible to receive the fuel economy 
incentives included in section 32906(a) and (b), a label shall be 
attached to the fuel compartment of each dual fueled automobile of that 
model, notifying that the vehicle can be operated on an alternative 
fuel and on gasoline or diesel, with the form of alternative fuel 
stated on the notice. This requirement applies to dual fueled 
automobiles manufactured on or after September 1, 2006.''.

                   Subtitle E--Automobile Efficiency

SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND 
              ENFORCEMENT OF FUEL ECONOMY STANDARDS.

    In addition to any other funds authorized by law, there are 
authorized to be appropriated to the National Highway Traffic Safety 
Administration to carry out its obligations with respect to average 
fuel economy standards $3,500,000 for each of the fiscal years 2006 
through 2010.

SEC. 772. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE 
              FUELED VEHICLES.

    (a) Manufacturing Incentives.--Section 32905 of title 49, United 
States Code, is amended--
        (1) in each of subsections (b) and (d), by striking ``1993-
    2004'' and inserting ``1993-2010'';
        (2) in subsection (f), by striking ``2001'' and inserting 
    ``2007''; and
        (3) in subsection (f)(1), by striking ``2004'' and inserting 
    ``2010''.
    (b) Maximum Fuel Economy Increase.--Subsection (a)(1) of section 
32906 of title 49, United States Code, is amended--
        (1) in subparagraph (A), by striking ``the model years 1993-
    2004'' and inserting ``model years 1993-2010''; and
        (2) in subparagraph (B), by striking ``the model years 2005-
    2008'' and inserting ``model years 2011-2014''.

SEC. 773. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR 
              AUTOMOBILES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Administrator of the National Highway 
Traffic Safety Administration shall initiate a study of the feasibility 
and effects of reducing by model year 2014, by a significant 
percentage, the amount of fuel consumed by automobiles.
    (b) Subjects of Study.--The study under this section shall 
include--
        (1) examination of, and recommendation of alternatives to, the 
    policy under current Federal law of establishing average fuel 
    economy standards for automobiles and requiring each automobile 
    manufacturer to comply with average fuel economy standards that 
    apply to the automobiles it manufactures;
        (2) examination of how automobile manufacturers could 
    contribute toward achieving the reduction referred to in subsection 
    (a);
        (3) examination of the potential of fuel cell technology in 
    motor vehicles in order to determine the extent to which such 
    technology may contribute to achieving the reduction referred to in 
    subsection (a); and
        (4) examination of the effects of the reduction referred to in 
    subsection (a) on--
            (A) gasoline supplies;
            (B) the automobile industry, including sales of automobiles 
        manufactured in the United States;
            (C) motor vehicle safety; and
            (D) air quality.
    (c) Report.--The Administrator shall submit to Congress a report on 
the findings, conclusion, and recommendations of the study under this 
section by not later than 1 year after the date of the enactment of 
this Act.

SEC. 774. UPDATE TESTING PROCEDURES.

    The Administrator of the Environmental Protection Agency shall 
update or revise the adjustment factors in sections 600.209-85 and 
600.209-95, of the Code of Federal Regulations, CFR Part 600 (1995) 
Fuel Economy Regulations for 1977 and Later Model Year Automobiles to 
take into consideration higher speed limits, faster acceleration rates, 
variations in temperature, use of air conditioning, shorter city test 
cycle lengths, current reference fuels, and the use of other fuel 
depleting features.

               Subtitle F--Federal and State Procurement

SEC. 781. DEFINITIONS.

    In this subtitle:
        (1) Fuel cell.--The term ``fuel cell'' means a device that 
    directly converts the chemical energy of a fuel and an oxidant into 
    electricity by electrochemical processes occurring at separate 
    electrodes in the device.
        (2) Light-duty or heavy-duty vehicle fleet.--The term ``light-
    duty or heavy-duty vehicle fleet'' does not include any vehicle 
    designed or procured for combat or combat-related missions.
        (3) Stationary; portable.--The terms ``stationary'' and 
    ``portable'', when used in reference to a fuel cell, include--
            (A) continuous electric power; and
            (B) backup electric power.
        (4) Task force.--The term ``Task Force'' means the Hydrogen and 
    Fuel Cell Technical Task Force established under section 806 of 
    this Act.
        (5) Technical advisory committee.--The term ``Technical 
    Advisory Committee'' means the independent Technical Advisory 
    Committee selected under section 807 of this Act.

SEC. 782. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES AND 
              HYDROGEN ENERGY SYSTEMS.

    (a) Purposes.--The purposes of this section are--
        (1) to stimulate acceptance by the market of fuel cell vehicles 
    and hydrogen energy systems;
        (2) to support development of technologies relating to fuel 
    cell vehicles, public refueling stations, and hydrogen energy 
    systems; and
        (3) to require the Federal government, which is the largest 
    single user of energy in the United States, to adopt those 
    technologies as soon as practicable after the technologies are 
    developed, in conjunction with private industry partners.
    (b) Federal Leases and Purchases.--
        (1) Requirement.--
            (A) In general.--Not later than January 1, 2010, the head 
        of any Federal agency that uses a light-duty or heavy-duty 
        vehicle fleet shall lease or purchase fuel cell vehicles and 
        hydrogen energy systems to meet any applicable energy savings 
        goal described in subsection (c).
            (B) Learning demonstration vehicles.--The Secretary may 
        lease or purchase appropriate vehicles developed under 
        subsections (a)(10) and (b)(1)(A) of section 808 to meet the 
        requirement in subparagraph (A).
        (2) Costs of leases and purchases.--
            (A) In general.--The Secretary, in cooperation with the 
        Task Force and the Technical Advisory Committee, shall pay to 
        Federal agencies (or share the cost under interagency 
        agreements) the difference in cost between--
                (i) the cost to the agencies of leasing or purchasing 
            fuel cell vehicles and hydrogen energy systems under 
            paragraph (1); and
                (ii) the cost to the agencies of a feasible alternative 
            to leasing or purchasing fuel cell vehicles and hydrogen 
            energy systems, as determined by the Secretary.
            (B) Competitive costs and management structures.--In 
        carrying out subparagraph (A), the Secretary, in consultation 
        with the agency, may use the General Services Administration or 
        any commercial vendor to ensure--
                (i) a cost-effective purchase of a fuel cell vehicle or 
            hydrogen energy system; or
                (ii) a cost-effective management structure of the lease 
            of a fuel cell vehicle or hydrogen energy system.
        (3) Exception.--
            (A) In general.--If the Secretary determines that the head 
        of an agency described in paragraph (1) cannot find an 
        appropriately efficient and reliable fuel cell vehicle or 
        hydrogen energy system in accordance with paragraph (1), that 
        agency shall be excepted from compliance with paragraph (1).
            (B) Consideration.--In making a determination under 
        subparagraph (A), the Secretary shall consider--
                (i) the needs of the agency; and
                (ii) an evaluation performed by--

                    (I) the Task Force; or
                    (II) the Technical Advisory Committee.

    (c) Energy Savings Goals.--
        (1) In general.--
            (A) Regulations.--Not later than December 31, 2006, the 
        Secretary shall--
                (i) in cooperation with the Task Force, promulgate 
            regulations for the period of 2008 through 2010 that extend 
            and augment energy savings goals for each Federal agency, 
            in accordance with any Executive order issued after March 
            2000; and
                (ii) promulgate regulations to expand the minimum 
            Federal fleet requirement and credit allowances for fuel 
            cell vehicle systems under section 303 of the Energy Policy 
            Act of 1992 (42 U.S.C. 13212).
            (B) Review, evaluation, and new regulations.--Not later 
        than December 31, 2010, the Secretary shall--
                (i) review the regulations promulgated under 
            subparagraph (A);
                (ii) evaluate any progress made toward achieving energy 
            savings by Federal agencies; and
                (iii) promulgate new regulations for the period of 2011 
            through 2015 to achieve additional energy savings by 
            Federal agencies relating to technical and cost-performance 
            standards.
        (2) Offsetting energy savings goals.--An agency that leases or 
    purchases a fuel cell vehicle or hydrogen energy system in 
    accordance with subsection (b)(1) may use that lease or purchase to 
    count toward an energy savings goal of the agency.
    (d) Cooperative Program With State Agencies.--
        (1) In general.--The Secretary may establish a cooperative 
    program with State agencies managing motor vehicle fleets to 
    encourage purchase of fuel cell vehicles by the agencies.
        (2) Incentives.--In carrying out the cooperative program, the 
    Secretary may offer incentive payments to a State agency to assist 
    with the cost of planning, differential purchases, and 
    administration.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
        (1) $15,000,000 for fiscal year 2008;
        (2) $25,000,000 for fiscal year 2009;
        (3) $65,000,000 for fiscal year 2010; and
        (4) such sums as are necessary for each of fiscal years 2011 
    through 2015.

SEC. 783. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND MICRO FUEL 
              CELLS.

    (a) Purposes.--The purposes of this section are--
        (1) to stimulate acceptance by the market of stationary, 
    portable, and micro fuel cells; and
        (2) to support development of technologies relating to 
    stationary, portable, and micro fuel cells.
    (b) Federal Leases and Purchases.--
        (1) In general.--Not later than January 1, 2006, the head of 
    any Federal agency that uses electrical power from stationary, 
    portable, or microportable devices shall lease or purchase a 
    stationary, portable, or micro fuel cell to meet any applicable 
    energy savings goal described in subsection (c).
        (2) Costs of leases and purchases.--
            (A) In general.--The Secretary, in cooperation with the 
        Task Force and the Technical Advisory Committee, shall pay the 
        cost to Federal agencies (or share the cost under interagency 
        agreements) of leasing or purchasing stationary, portable, and 
        micro fuel cells under paragraph (1).
            (B) Competitive costs and management structures.--In 
        carrying out subparagraph (A), the Secretary, in consultation 
        with the agency, may use the General Services Administration or 
        any commercial vendor to ensure--
                (i) a cost-effective purchase of a stationary, 
            portable, or micro fuel cell; or
                (ii) a cost-effective management structure of the lease 
            of a stationary, portable, or micro fuel cell.
        (3) Exception.--
            (A) In general.--If the Secretary determines that the head 
        of an agency described in paragraph (1) cannot find an 
        appropriately efficient and reliable stationary, portable, or 
        micro fuel cell in accordance with paragraph (1), that agency 
        shall be excepted from compliance with paragraph (1).
            (B) Consideration.--In making a determination under 
        subparagraph (A), the Secretary shall consider--
                (i) the needs of the agency; and
                (ii) an evaluation performed by--

                    (I) the Task Force; or
                    (II) the Technical Advisory Committee of the Task 
                Force.

    (c) Energy Savings Goals.--An agency that leases or purchases a 
stationary, portable, or micro fuel cell in accordance with subsection 
(b)(1) may use that lease or purchase to count toward an energy savings 
goal described in section 808 of this Act that is applicable to the 
agency.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
        (1) $20,000,000 for fiscal year 2006;
        (2) $50,000,000 for fiscal year 2007;
        (3) $75,000,000 for fiscal year 2008;
        (4) $100,000,000 for fiscal year 2009;
        (5) $100,000,000 for fiscal year 2010; and
        (6) such sums as are necessary for each of fiscal years 2011 
    through 2015.

                 Subtitle G--Diesel Emissions Reduction

SEC. 791. DEFINITIONS.

    In this subtitle:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Environmental Protection Agency.
        (2) Certified engine configuration.--The term ``certified 
    engine configuration'' means a new, rebuilt, or remanufactured 
    engine configuration--
            (A) that has been certified or verified by--
                (i) the Administrator; or
                (ii) the California Air Resources Board;
            (B) that meets or is rebuilt or remanufactured to a more 
        stringent set of engine emission standards, as determined by 
        the Administrator; and
            (C) in the case of a certified engine configuration 
        involving the replacement of an existing engine or vehicle, an 
        engine configuration that replaced an engine that was--
                (i) removed from the vehicle; and
                (ii) returned to the supplier for remanufacturing to a 
            more stringent set of engine emissions standards or for 
            scrappage.
        (3) Eligible entity.--The term ``eligible entity'' means--
            (A) a regional, State, local, or tribal agency or port 
        authority with jurisdiction over transportation or air quality; 
        and
            (B) a nonprofit organization or institution that--
                (i) represents or provides pollution reduction or 
            educational services to persons or organizations that own 
            or operate diesel fleets; or
                (ii) has, as its principal purpose, the promotion of 
            transportation or air quality.
        (4) Emerging technology.--The term ``emerging technology'' 
    means a technology that is not certified or verified by the 
    Administrator or the California Air Resources Board but for which 
    an approvable application and test plan has been submitted for 
    verification to the Administrator or the California Air Resources 
    Board.
        (5) Fleet.--The term ``fleet'' means one or more diesel 
    vehicles or mobile or stationary diesel engines.
        (6) Heavy-duty truck.--The term ``heavy-duty truck'' has the 
    meaning given the term ``heavy duty vehicle'' in section 202 of the 
    Clean Air Act (42 U.S.C. 7521).
        (7) Medium-duty truck.--The term ``medium-duty truck'' has such 
    meaning as shall be determined by the Administrator, by regulation.
        (8) Verified technology.--The term ``verified technology'' 
    means a pollution control technology, including a retrofit 
    technology, advanced truckstop electrification system, or auxiliary 
    power unit, that has been verified by--
            (A) the Administrator; or
            (B) the California Air Resources Board.

SEC. 792. NATIONAL GRANT AND LOAN PROGRAMS.

    (a) In General.--The Administrator shall use 70 percent of the 
funds made available to carry out this subtitle for each fiscal year to 
provide grants and low-cost revolving loans, as determined by the 
Administrator, on a competitive basis, to eligible entities to achieve 
significant reductions in diesel emissions in terms of--
        (1) tons of pollution produced; and
        (2) diesel emissions exposure, particularly from fleets 
    operating in areas designated by the Administrator as poor air 
    quality areas.
    (b) Distribution.--
        (1) In general.--The Administrator shall distribute funds made 
    available for a fiscal year under this subtitle in accordance with 
    this section.
        (2) Fleets.--The Administrator shall provide not less than 50 
    percent of funds available for a fiscal year under this section to 
    eligible entities for the benefit of public fleets.
        (3) Engine configurations and technologies.--
            (A) Certified engine configurations and verified 
        technologies.--The Administrator shall provide not less than 90 
        percent of funds available for a fiscal year under this section 
        to eligible entities for projects using--
                (i) a certified engine configuration; or
                (ii) a verified technology.
            (B) Emerging technologies.--
                (i) In general.--The Administrator shall provide not 
            more than 10 percent of funds available for a fiscal year 
            under this section to eligible entities for the development 
            and commercialization of emerging technologies.
                (ii) Application and test plan.--To receive funds under 
            clause (i), a manufacturer, in consultation with an 
            eligible entity, shall submit for verification to the 
            Administrator or the California Air Resources Board a test 
            plan for the emerging technology, together with the 
            application under subsection (c).
    (c) Applications.--
        (1) In general.--To receive a grant or loan under this section, 
    an eligible entity shall submit to the Administrator an application 
    at a time, in a manner, and including such information as the 
    Administrator may require.
        (2) Inclusions.--An application under this subsection shall 
    include--
            (A) a description of the air quality of the area served by 
        the eligible entity;
            (B) the quantity of air pollution produced by the diesel 
        fleets in the area served by the eligible entity;
            (C) a description of the project proposed by the eligible 
        entity, including--
                (i) any certified engine configuration, verified 
            technology, or emerging technology to be used or funded by 
            the eligible entity; and
                (ii) the means by which the project will achieve a 
            significant reduction in diesel emissions;
            (D) an evaluation (using methodology approved by the 
        Administrator or the National Academy of Sciences) of the 
        quantifiable and unquantifiable benefits of the emissions 
        reductions of the proposed project;
            (E) an estimate of the cost of the proposed project;
            (F) a description of the age and expected lifetime control 
        of the equipment used or funded by the eligible entity;
            (G) a description of the diesel fuel available in the areas 
        to be served by the eligible entity, including the sulfur 
        content of the fuel; and
            (H) provisions for the monitoring and verification of the 
        project.
        (3) Priority.--In providing a grant or loan under this section, 
    the Administrator shall give priority to proposed projects that, as 
    determined by the Administrator--
            (A) maximize public health benefits;
            (B) are the most cost-effective;
            (C) serve areas--
                (i) with the highest population density;
                (ii) that are poor air quality areas, including areas 
            identified by the Administrator as--

                    (I) in nonattainment or maintenance of national 
                ambient air quality standards for a criteria pollutant;
                    (II) Federal Class I areas; or
                    (III) areas with toxic air pollutant concerns;

                (iii) that receive a disproportionate quantity of air 
            pollution from a diesel fleets, including truckstops, 
            ports, rail yards, terminals, and distribution centers; or
                (iv) that use a community-based multistakeholder 
            collaborative process to reduce toxic emissions;
            (D) include a certified engine configuration, verified 
        technology, or emerging technology that has a long expected 
        useful life;
            (E) will maximize the useful life of any certified engine 
        configuration, verified technology, or emerging technology used 
        or funded by the eligible entity;
            (F) conserve diesel fuel; and
            (G) use diesel fuel with a sulfur content of less than or 
        equal to 15 parts per million, as the Administrator determines 
        to be appropriate.
    (d) Use of Funds.--
        (1) In general.--An eligible entity may use a grant or loan 
    provided under this section to fund the costs of--
            (A) a retrofit technology (including any incremental costs 
        of a repowered or new diesel engine) that significantly reduces 
        emissions through development and implementation of a certified 
        engine configuration, verified technology, or emerging 
        technology for--
                (i) a bus;
                (ii) a medium-duty truck or a heavy-duty truck;
                (iii) a marine engine;
                (iv) a locomotive; or
                (v) a nonroad engine or vehicle used in--

                    (I) construction;
                    (II) handling of cargo (including at a port or 
                airport);
                    (III) agriculture;
                    (IV) mining; or
                    (V) energy production; or

            (B) programs or projects to reduce long-duration idling 
        using verified technology involving a vehicle or equipment 
        described in subparagraph (A).
        (2) Regulatory programs.--
            (A) In general.--Notwithstanding paragraph (1), no grant or 
        loan provided under this section shall be used to fund the 
        costs of emissions reductions that are mandated under Federal, 
        State or local law.
            (B) Mandated.--For purposes of subparagraph (A), voluntary 
        or elective emission reduction measures shall not be considered 
        ``mandated'', regardless of whether the reductions are included 
        in the State implementation plan of a State.

SEC. 793. STATE GRANT AND LOAN PROGRAMS.

    (a) In General.--Subject to the availability of adequate 
appropriations, the Administrator shall use 30 percent of the funds 
made available for a fiscal year under this subtitle to support grant 
and loan programs administered by States that are designed to achieve 
significant reductions in diesel emissions.
    (b) Applications.--The Administrator shall--
        (1) provide to States guidance for use in applying for grant or 
    loan funds under this section, including information regarding--
            (A) the process and forms for applications;
            (B) permissible uses of funds received; and
            (C) the cost-effectiveness of various emission reduction 
        technologies eligible to be carried out using funds provided 
        under this section; and
        (2) establish, for applications described in paragraph (1)--
            (A) an annual deadline for submission of the applications;
            (B) a process by which the Administrator shall approve or 
        disapprove each application; and
            (C) a streamlined process by which a State may renew an 
        application described in paragraph (1) for subsequent fiscal 
        years.
    (c) Allocation of Funds.--
        (1) In general.--For each fiscal year, the Administrator shall 
    allocate among States for which applications are approved by the 
    Administrator under subsection (b)(2)(B) funds made available to 
    carry out this section for the fiscal year.
        (2) Allocation.--Using not more than 20 percent of the funds 
    made available to carry out this subtitle for a fiscal year, the 
    Administrator shall provide to each State described in paragraph 
    (1) for the fiscal year an allocation of funds that is equal to--
            (A) if each of the 50 States qualifies for an allocation, 
        an amount equal to 2 percent of the funds made available to 
        carry out this section; or
            (B) if fewer than 50 States qualifies for an allocation, an 
        amount equal to the amount described in subparagraph (A), plus 
        an additional amount equal to the product obtained by 
        multiplying--
                (i) the proportion that--

                    (I) the population of the State; bears to
                    (II) the population of all States described in 
                paragraph (1); by

                (ii) the amount of funds remaining after each State 
            described in paragraph (1) receives the 2-percent 
            allocation under this paragraph.
        (3) State matching incentive.--
            (A) In general.--If a State agrees to match the allocation 
        provided to the State under paragraph (2) for a fiscal year, 
        the Administrator shall provide to the State for the fiscal 
        year an additional amount equal to 50 percent of the allocation 
        of the State under paragraph (2).
            (B) Requirements.--A State--
                (i) may not use funds received under this subtitle to 
            pay a matching share required under this subsection; and
                (ii) shall not be required to provide a matching share 
            for any additional amount received under subparagraph (A).
        (4) Unclaimed funds.--Any funds that are not claimed by a State 
    for a fiscal year under this subsection shall be used to carry out 
    section 792.
    (d) Administration.--
        (1) In general.--Subject to paragraphs (2) and (3) and, to the 
    extent practicable, the priority areas listed in section 792(c)(3), 
    a State shall use any funds provided under this section to develop 
    and implement such grant and low-cost revolving loan programs in 
    the State as are appropriate to meet State needs and goals relating 
    to the reduction of diesel emissions.
        (2) Apportionment of funds.--The Governor of a State that 
    receives funding under this section may determine the portion of 
    funds to be provided as grants or loans.
        (3) Use of funds.--A grant or loan provided under this section 
    may be used for a project relating to--
            (A) a certified engine configuration; or
            (B) a verified technology.

SEC. 794. EVALUATION AND REPORT.

    (a) In General.--Not later than 1 year after the date on which 
funds are made available under this subtitle, and biennially 
thereafter, the Administrator shall submit to Congress a report 
evaluating the implementation of the programs under this subtitle.
    (b) Inclusions.--The report shall include a description of--
        (1) the total number of grant applications received;
        (2) each grant or loan made under this subtitle, including the 
    amount of the grant or loan;
        (3) each project for which a grant or loan is provided under 
    this subtitle, including the criteria used to select the grant or 
    loan recipients;
        (4) the actual and estimated air quality and diesel fuel 
    conservation benefits, cost-effectiveness, and cost-benefits of the 
    grant and loan programs under this subtitle;
        (5) the problems encountered by projects for which a grant or 
    loan is provided under this subtitle; and
        (6) any other information the Administrator considers to be 
    appropriate.

SEC. 795. OUTREACH AND INCENTIVES.

    (a) Definition of Eligible Technology.--In this section, the term 
``eligible technology'' means--
        (1) a verified technology; or
        (2) an emerging technology.
    (b) Technology Transfer Program.--
        (1) In general.--The Administrator shall establish a program 
    under which the Administrator--
            (A) informs stakeholders of the benefits of eligible 
        technologies; and
            (B) develops nonfinancial incentives to promote the use of 
        eligible technologies.
        (2) Eligible stakeholders.--Eligible stakeholders under this 
    section include--
            (A) equipment owners and operators;
            (B) emission and pollution control technology 
        manufacturers;
            (C) engine and equipment manufacturers;
            (D) State and local officials responsible for air quality 
        management;
            (E) community organizations; and
            (F) public health, educational, and environmental 
        organizations.
    (c) State Implementation Plans.--The Administrator shall develop 
appropriate guidance to provide credit to a State for emission 
reductions in the State created by the use of eligible technologies 
through a State implementation plan under section 110 of the Clean Air 
Act (42 U.S.C. 7410).
    (d) International Markets.--The Administrator, in coordination with 
the Department of Commerce and industry stakeholders, shall inform 
foreign countries with air quality problems of the potential of 
technology developed or used in the United States to provide emission 
reductions in those countries.

SEC. 796. EFFECT OF SUBTITLE.

    Nothing in this subtitle affects any authority under the Clean Air 
Act (42 U.S.C. 7401 et seq.) in existence on the day before the date of 
enactment of this Act.

SEC. 797. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$200,000,000 for each of fiscal years 2007 through 2011, to remain 
available until expended.

                          TITLE VIII--HYDROGEN

SEC. 801. HYDROGEN AND FUEL CELL PROGRAM.

    This title may be cited as the ``Spark M. Matsunaga Hydrogen Act of 
2005''.

SEC. 802. PURPOSES.

    The purposes of this title are--
        (1) to enable and promote comprehensive development, 
    demonstration, and commercialization of hydrogen and fuel cell 
    technology in partnership with industry;
        (2) to make critical public investments in building strong 
    links to private industry, institutions of higher education, 
    National Laboratories, and research institutions to expand 
    innovation and industrial growth;
        (3) to build a mature hydrogen economy that creates fuel 
    diversity in the massive transportation sector of the United 
    States;
        (4) to sharply decrease the dependency of the United States on 
    imported oil, eliminate most emissions from the transportation 
    sector, and greatly enhance our energy security; and
        (5) to create, strengthen, and protect a sustainable national 
    energy economy.

SEC. 803. DEFINITIONS.

    In this title:
        (1) Fuel cell.--The term ``fuel cell'' means a device that 
    directly converts the chemical energy of a fuel, which is supplied 
    from an external source, and an oxidant into electricity by 
    electrochemical processes occurring at separate electrodes in the 
    device.
        (2) Heavy-duty vehicle.--The term ``heavy-duty vehicle'' means 
    a motor vehicle that--
            (A) is rated at more than 8,500 pounds gross vehicle 
        weight;
            (B) has a curb weight of more than 6,000 pounds; or
            (C) has a basic vehicle frontal area in excess of 45 square 
        feet.
        (3) Infrastructure.--The term ``infrastructure'' means the 
    equipment, systems, or facilities used to produce, distribute, 
    deliver, or store hydrogen (except for onboard storage).
        (4) Light-duty vehicle.--The term ``light-duty vehicle'' means 
    a motor vehicle that is rated at 8,500 or less pounds gross vehicle 
    weight.
        (5) Stationary; portable.--The terms ``stationary'' and 
    ``portable'', when used in reference to a fuel cell, include--
            (A) continuous electric power; and
            (B) backup electric power.
        (6) Task force.--The term ``Task Force'' means the Hydrogen and 
    Fuel Cell Technical Task Force established under section 806.
        (7) Technical advisory committee.--The term ``Technical 
    Advisory Committee'' means the independent Technical Advisory 
    Committee established under section 807.

SEC. 804. 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 805(e);
        (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 
    805, 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. 805. PROGRAMS.

    (a) In General.--The Secretary, in consultation with other Federal 
agencies and the private sector, shall conduct a research and 
development program on technologies relating to the production, 
purification, distribution, storage, and use of hydrogen energy, fuel 
cells, and related infrastructure.
    (b) Goal.--The goal of the program shall be to demonstrate and 
commercialize the use of hydrogen for transportation (in light-duty 
vehicles and heavy-duty vehicles), utility, industrial, commercial, and 
residential applications.
    (c) Focus.--In carrying out activities under this section, the 
Secretary shall focus on factors that are common to the development of 
hydrogen infrastructure and the supply of vehicle and electric power 
for critical consumer and commercial applications, and that achieve 
continuous technical evolution and cost reduction, particularly for 
hydrogen production, the supply of hydrogen, storage of hydrogen, and 
end uses of hydrogen that--
        (1) steadily increase production, distribution, and end use 
    efficiency and reduce life-cycle emissions;
        (2) resolve critical problems relating to catalysts, membranes, 
    storage, lightweight materials, electronic controls, 
    manufacturability, and other problems that emerge from the program;
        (3) enhance sources of renewable fuels and biofuels for 
    hydrogen production; and
        (4) enable widespread use of distributed electricity generation 
    and storage.
    (d) Public Education and Research.--In carrying out this section, 
the Secretary shall support enhanced public education and research 
conducted at institutions of higher education in fundamental sciences, 
application design, and systems concepts (including education and 
research relating to materials, subsystems, manufacturability, 
maintenance, and safety) relating to hydrogen and fuel cells.
    (e) 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 onsite 
        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; and
        (7) the ability of domestic automobile manufacturers to 
    manufacture commercially available competitive hybrid vehicle 
    technologies in the United States.
    (f) 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, when compared to 
        light duty vehicles in model year 2005--
                (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, 
        micro, critical needs facilities, 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.
    (g) 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.
    (h) Hydrogen Supply.--There are authorized to be appropriated to 
carry out projects and activities relating to hydrogen production, 
storage, distribution and dispensing, transport, education and 
coordination, and technology transfer under this section--
        (1) $160,000,000 for fiscal year 2006;
        (2) $200,000,000 for fiscal year 2007;
        (3) $220,000,000 for fiscal year 2008;
        (4) $230,000,000 for fiscal year 2009;
        (5) $250,000,000 for fiscal year 2010; and
        (6) such sums as are necessary for each of fiscal years 2011 
    through 2020.
    (i) Fuel Cell Technologies.--There are authorized to be 
appropriated to carry out projects and activities relating to fuel cell 
technologies under this section--
        (1) $150,000,000 for fiscal year 2006;
        (2) $160,000,000 for fiscal year 2007;
        (3) $170,000,000 for fiscal year 2008;
        (4) $180,000,000 for fiscal year 2009;
        (5) $200,000,000 for fiscal year 2010; and
        (6) such sums as are necessary for each of fiscal years 2011 
    through 2020.

SEC. 806. HYDROGEN AND FUEL CELL TECHNICAL 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 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 Task Force may organize workshops and 
    conferences, may issue publications, and may create databases to 
    carry out its duties. The 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 Task Force, shall cooperate 
with and furnish information to the Task Force, the Technical Advisory 
Committee, and the Department.

SEC. 807. TECHNICAL 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 Technical 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 Technical Advisory Committee members and the needs of the 
    Technical Advisory Committee.
        (2) Terms.--The term of a member of the Technical Advisory 
    Committee shall not be more than 3 years. The Secretary may appoint 
    members of the Technical 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 
    Technical Advisory Committee. A member of the Technical Advisory 
    Committee whose term is expiring may be reappointed.
        (3) Chairperson.--The Technical Advisory Committee shall have a 
    chairperson, who shall be elected by the members from among their 
    number.
    (c) Review.--The Technical 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 804.
    (d) Response.--
        (1) Consideration of recommendations.--The Secretary shall 
    consider, but need not adopt, any recommendations of the Technical 
    Advisory Committee under subsection (c).
        (2) Biennial report.--The Secretary shall transmit a biennial 
    report to Congress describing any recommendations made by the 
    Technical 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 Technical Advisory Committee to 
carry out its responsibilities under this title.

SEC. 808. DEMONSTRATION.

    (a) In General.--In carrying out the programs under this section, 
the Secretary shall fund a limited number of demonstration projects, 
consistent with this title and 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;
        (9) carry out demonstrations of evolving hydrogen and fuel cell 
    technologies in national parks, remote island areas, and on Indian 
    tribal land, as selected by the Secretary;
        (10) carry out a program to demonstrate developmental hydrogen 
    and fuel cell systems for mobile, portable, and stationary uses, 
    using improved versions of the learning demonstrations program 
    concept of the Department including demonstrations involving--
            (A) light-duty vehicles;
            (B) heavy-duty vehicles;
            (C) fleet vehicles;
            (D) specialty industrial and farm vehicles; and
            (E) commercial and residential portable, continuous, and 
        backup electric power generation;
        (11) in accordance with any code or standards developed in a 
    region, fund prototype, pilot fleet, and infrastructure regional 
    hydrogen supply corridors along the interstate highway system in 
    varied climates across the United States; and
        (12) fund demonstration programs that explore the use of 
    hydrogen blends, hybrid hydrogen, and hydrogen reformed from 
    renewable agricultural fuels, including the use of hydrogen in 
    hybrid electric, heavier duty, and advanced internal combustion-
    powered vehicles.
The Secretary shall give preference to projects which address multiple 
elements contained in paragraphs (1) through (12).
    (b) System Demonstrations.--
        (1) In general.--As a component of the demonstration program 
    under this section, the Secretary shall provide grants, on a cost 
    share basis as appropriate, to eligible entities (as determined by 
    the Secretary) for use in--
            (A) devising system design concepts that provide for the 
        use of advanced composite vehicles in programs under section 
        782 that--
                (i) have as a primary goal the reduction of drive 
            energy requirements;
                (ii) after 2010, add another research and development 
            phase, as defined in subsection (c), including the vehicle 
            and infrastructure partnerships developed under the 
            learning demonstrations program concept of the Department; 
            and
                (iii) are managed through an enhanced FreedomCAR 
            program within the Department that encourages involvement 
            in cost-shared projects by manufacturers and governments; 
            and
            (B) designing a local distributed energy system that--
                (i) incorporates renewable hydrogen production, off-
            grid electricity production, and fleet applications in 
            industrial or commercial service;
                (ii) integrates energy or applications described in 
            clause (i), such as stationary, portable, micro, and mobile 
            fuel cells, into a high-density commercial or residential 
            building complex or agricultural community; and
                (iii) is managed in cooperation with industry, State, 
            tribal, and local governments, agricultural organizations, 
            and nonprofit generators and distributors of electricity.
    (c) Identification of New Program Requirements.--In carrying out 
the demonstrations under subsection (a), the Secretary, in consultation 
with the Task Force and the Technical Advisory Committee, shall--
        (1) after 2008 for stationary and portable applications, and 
    after 2010 for vehicles, identify new requirements that refine 
    technological concepts, planning, and applications; and
        (2) during the second phase of the learning demonstrations 
    under subsection (b)(1)(A)(ii), redesign subsequent program work to 
    incorporate those requirements.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
        (1) $185,000,000 for fiscal year 2006;
        (2) $200,000,000 for fiscal year 2007;
        (3) $250,000,000 for fiscal year 2008;
        (4) $300,000,000 for fiscal year 2009;
        (5) $375,000,000 for fiscal year 2010; and
        (6) such sums as are necessary for each of fiscal years 2011 
    through 2020.

SEC. 809. CODES AND STANDARDS.

    (a) In General.--The Secretary, in cooperation with the Task Force, 
shall provide grants to, or offer to enter into contracts with, such 
professional organizations, public service organizations, and 
government agencies as the Secretary determines appropriate to support 
timely and extensive development of safety codes and standards relating 
to fuel cell vehicles, hydrogen energy systems, and stationary, 
portable, and micro fuel cells.
    (b) Educational Efforts.--The Secretary shall support educational 
efforts by organizations and agencies described in subsection (a) to 
share information, including information relating to best practices, 
among those organizations and agencies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
        (1) $4,000,000 for fiscal year 2006;
        (2) $7,000,000 for fiscal year 2007;
        (3) $8,000,000 for fiscal year 2008;
        (4) $10,000,000 for fiscal year 2009;
        (5) $9,000,000 for fiscal year 2010; and
        (6) such sums as are necessary for each of fiscal years 2011 
    through 2020.

SEC. 810. DISCLOSURE.

    Section 623 of the Energy Policy Act of 1992 (42 U.S.C. 13293) 
shall apply to any project carried out through a grant, cooperative 
agreement, or contract under this title.

SEC. 811. REPORTS.

    (a) Secretary.--Subject to subsection (c), not later than 2 years 
after the date of enactment of this Act, and triennially thereafter, 
the Secretary shall submit to Congress a report describing--
        (1) activities carried out by the Department under this title, 
    for hydrogen and fuel cell technology;
        (2) measures the Secretary has taken during the preceding 3 
    years to support the transition of primary industry (or a related 
    industry) to a fully commercialized hydrogen economy;
        (3) any change made to the strategy relating to hydrogen and 
    fuel cell technology to reflect the results of a learning 
    demonstrations;
        (4) progress, including progress in infrastructure, made toward 
    achieving the goal of producing and deploying not less than--
            (A) 100,000 hydrogen-fueled vehicles in the United States 
        by 2010; and
            (B) 2,500,000 hydrogen-fueled vehicles in the United States 
        by 2020;
        (5) progress made toward achieving the goal of supplying 
    hydrogen at a sufficient number of fueling stations in the United 
    States by 2010 including by integrating--
            (A) hydrogen activities; and
            (B) associated targets and timetables for the development 
        of hydrogen technologies;
        (6) any problem relating to the design, execution, or funding 
    of a program under this title;
        (7) progress made toward and goals achieved in carrying out 
    this title and updates to the developmental roadmap, including the 
    results of the reviews conducted by the National Academy of 
    Sciences under subsection (b) for the fiscal years covered by the 
    report; and
        (8) any updates to strategic plans that are necessary to meet 
    the goals described in paragraph (4).
    (b) External Review.--The Secretary shall enter into an arrangement 
with the National Academy of Sciences under which the Academy will 
review the programs under sections 805 and 808 every fourth year 
following the date of enactment of this Act. The Academy's review shall 
include the program priorities and technical milestones, and evaluate 
the progress toward achieving them. The first 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.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,500,000 for each of fiscal 
years 2006 through 2020.

SEC. 812. SOLAR AND WIND TECHNOLOGIES.

    (a) Solar Energy Technologies.--The Secretary shall--
        (1) prepare a detailed roadmap for carrying out the provisions 
    in this title related to solar energy technologies and for 
    implementing the recommendations related to solar energy 
    technologies that are included in the report transmitted under 
    subsection (e);
        (2) provide for the establishment of 5 projects in geographic 
    areas that are regionally and climatically diverse to demonstrate 
    the production of hydrogen at solar energy facilities, including 
    one demonstration project at a National Laboratory or institution 
    of higher education;
        (3) establish a program--
            (A) to develop optimized concentrating solar power devices 
        that may be used for the production of both electricity and 
        hydrogen; and
            (B) to evaluate the use of thermochemical cycles for 
        hydrogen production at the temperatures attainable with 
        concentrating solar power devices;
        (4) coordinate with activities sponsored by the Department's 
    Office of Nuclear Energy, Science, and Technology on high-
    temperature materials, thermochemical cycles, and economic issues 
    related to solar energy;
        (5) provide for the construction and operation of new 
    concentrating solar power devices or solar power cogeneration 
    facilities that produce hydrogen either concurrently with, or 
    independently of, the production of electricity;
        (6) support existing facilities and programs of study related 
    to concentrating solar power devices; and
        (7) establish a program--
            (A) to develop methods that use electricity from 
        photovoltaic devices for the onsite production of hydrogen, 
        such that no intermediate transmission or distribution 
        infrastructure is required or used and future demand growth may 
        be accommodated;
            (B) to evaluate the economics of small-scale electrolysis 
        for hydrogen production; and
            (C) to study the potential of modular photovoltaic devices 
        for the development of a hydrogen infrastructure, the security 
        implications of a hydrogen infrastructure, and the benefits 
        potentially derived from a hydrogen infrastructure.
    (b) Wind Energy Technologies.--The Secretary shall--
        (1) prepare a detailed roadmap for carrying out the provisions 
    in this title related to wind energy technologies and for 
    implementing the recommendations related to wind energy 
    technologies that are included in the report transmitted under 
    subsection (e); and
        (2) provide for the establishment of 5 projects in geographic 
    areas that are regionally and climatically diverse to demonstrate 
    the production of hydrogen at existing wind energy facilities, 
    including one demonstration project at a National Laboratory or 
    institution of higher education.
    (c) Program Support.--The Secretary shall support programs at 
institutions of higher education for the development of solar energy 
technologies and wind energy technologies for the production of 
hydrogen. The programs supported under this subsection shall--
        (1) enhance fellowship and faculty assistance programs;
        (2) provide support for fundamental research;
        (3) encourage collaborative research among industry, National 
    Laboratories, and institutions of higher education;
        (4) support communication and outreach; and
        (5) to the greatest extent possible--
            (A) be located in geographic areas that are regionally and 
        climatically diverse; and
            (B) be located at part B institutions, minority 
        institutions, and institutions of higher education located in 
        States participating in the Experimental Program to Stimulate 
        Competitive Research of the Department.
    (d) Institutions of Higher Education and National Laboratory 
Interactions.--In conjunction with the programs supported under this 
section, the Secretary shall develop sabbatical, fellowship, and 
visiting scientist programs to encourage National Laboratories and 
institutions of higher education to share and exchange personnel.
    (e) Report.--The Secretary shall transmit to the Congress not later 
than 120 days after the date of enactment of this Act a report 
containing detailed summaries of the roadmaps prepared under 
subsections (a)(1) and (b)(1), descriptions of the Secretary's progress 
in establishing the projects and other programs required under this 
section, and recommendations for promoting the availability of advanced 
solar and wind energy technologies for the production of hydrogen.
    (f) Definitions.--For purposes of this section--
        (1) the term ``concentrating solar power devices'' means 
    devices that concentrate the power of the sun by reflection or 
    refraction to improve the efficiency of a photovoltaic or thermal 
    generation process;
        (2) the term ``minority institution'' has the meaning given to 
    that term in section 365 of the Higher Education Act of 1965 (20 
    U.S.C. 1067k);
        (3) the term ``part B institution'' has the meaning given to 
    that term in section 322 of the Higher Education Act of 1965 (20 
    U.S.C. 1061); and
        (4) the term ``photovoltaic devices'' means devices that 
    convert light directly into electricity through a solid-state, 
    semiconductor process.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary for carrying out the activities 
under this section for each of fiscal years 2006 through 2020.

SEC. 813. TECHNOLOGY TRANSFER.

    In carrying out this title, the Secretary shall carry out programs 
that--
        (1) provide for the transfer of critical hydrogen and fuel cell 
    technologies to the private sector;
        (2) accelerate wider application of those technologies in the 
    global market;
        (3) foster the exchange of generic, nonproprietary information; 
    and
        (4) assess technical and commercial viability of technologies 
    relating to the production, distribution, storage, and use of 
    hydrogen energy and fuel cells.

SEC. 814. 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. 815. COST SHARING.

    The costs of carrying out projects and activities under this title 
shall be shared in accordance with section 988.

SEC. 816. 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.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2005''.

SEC. 902. GOALS.

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

SEC. 903. DEFINITIONS.

    In this title:
        (1) Departmental mission.--The term ``departmental mission'' 
    means any of the functions vested in the Secretary by the 
    Department of Energy Organization Act (42 U.S.C. 7101 et seq.) or 
    other law.
        (2) Hispanic-serving institution.--The term ``Hispanic-serving 
    institution'' has the meaning given the term in section 502(a) of 
    the Higher Education Act of 1965 (20 U.S.C. 1101a(a)).
        (3) Nonmilitary energy laboratory.--The term ``nonmilitary 
    energy laboratory'' means a National Laboratory other than a 
    National Laboratory listed in subparagraph (G), (H), or (N) of 
    section 2(3).
        (4) Part b institution.--The term ``part B institution'' has 
    the meaning given the term in section 322 of the Higher Education 
    Act of 1965 (20 U.S.C. 1061).
        (5) Single-purpose research facility.--The term ``single-
    purpose research facility'' means--
            (A) any of the primarily single-purpose entities owned by 
        the Department; or
            (B) any other organization of the Department designated by 
        the Secretary.
        (6) 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).

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--
        (1) Objectives.--The Secretary shall conduct programs of energy 
    efficiency research, development, demonstration, and commercial 
    application, including activities described in this subtitle. Such 
    programs shall take into consideration the following objectives:
            (A) Increasing the energy efficiency of vehicles, 
        buildings, and industrial processes.
            (B) Reducing the demand of the United States for energy, 
        especially energy from foreign sources.
            (C) Reducing the cost of energy and making the economy more 
        efficient and competitive.
            (D) Improving the energy security of the United States.
            (E) Reducing the environmental impact of energy-related 
        activities.
        (2) Programs.--Programs under this subtitle shall include 
    research, development, demonstration, and commercial application 
    of--
            (A) advanced, cost-effective technologies to improve the 
        energy efficiency and environmental performance of vehicles, 
        including--
                (i) hybrid and electric propulsion systems;
                (ii) plug-in hybrid systems;
                (iii) advanced combustion engines;
                (iv) weight and drag reduction technologies;
                (v) whole-vehicle design optimization; and
                (vi) advanced drive trains;
            (B) cost-effective technologies, for new construction and 
        retrofit, to improve the energy efficiency and environmental 
        performance of buildings, using a whole-buildings approach, 
        including onsite renewable energy generation;
            (C) advanced technologies to improve the energy efficiency, 
        environmental performance, and process efficiency of energy-
        intensive and waste-intensive industries; and
            (D) advanced control devices to improve the energy 
        efficiency of electric motors, including those used in 
        industrial processes, heating, ventilation, and cooling.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out energy efficiency and 
conservation research, development, demonstration, and commercial 
application activities, including activities authorized under this 
subtitle--
        (1) $783,000,000 for fiscal year 2007;
        (2) $865,000,000 for fiscal year 2008; and
        (3) $952,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection (b), the 
following sums are authorized:
        (1) For activities under section 912, $50,000,000 for each of 
    fiscal years 2007 through 2009.
        (2) For activities under section 915, $7,000,000 for each of 
    fiscal years 2007 through 2009.
        (3) For activities under subsection (a)(2)(A)--
            (A) $200,000,000 for fiscal year 2007;
            (B) $270,000,000 for fiscal year 2008; and
            (C) $310,000,000 for fiscal year 2009.
        (4) For activities under subsection (a)(2)(D), $2,000,000 for 
    each of fiscal years 2007 and 2008.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary to carry out section 912 $50,000,000 for 
each of fiscal years 2010 through 2013.
    (e) Limitations.--None of the funds authorized to be appropriated 
under this section may be used for--
        (1) the issuance or implementation of energy efficiency 
    regulations;
        (2) the weatherization program established under part A of 
    title IV of the Energy Conservation and Production Act (42 U.S.C. 
    6861 et seq.);
        (3) a State energy conservation plan established under part D 
    of title III of the Energy Policy and Conservation Act (42 U.S.C. 
    6321 et seq.); or
        (4) a Federal energy management measure carried out under part 
    3 of title V of the National Energy Conservation Policy Act (42 
    U.S.C. 8251 et seq.).

SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

    (a) Definitions.--In this section:
        (1) Advanced solid-state lighting.--The term ``advanced solid-
    state lighting'' means a semiconducting device package and delivery 
    system that produces white light using externally applied voltage.
        (2) Industry alliance.--The term ``Industry Alliance'' means an 
    entity selected by the Secretary under subsection (d).
        (3) Initiative.--The term ``Initiative'' means the Next 
    Generation Lighting Initiative carried out under this section.
        (4) Research.--The term ``research'' includes research on the 
    technologies, materials, and manufacturing processes required for 
    white light emitting diodes.
        (5) White light emitting diode.--The term ``white light 
    emitting diode'' means a semiconducting package, using either 
    organic or inorganic materials, that produces white light using 
    externally applied voltage.
    (b) Initiative.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
research, development, demonstration, and commercial application 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
    (c) Objectives.--The objectives of the Initiative shall be to 
develop advanced solid-state organic and inorganic lighting 
technologies based on white light emitting diodes that, compared to 
incandescent and fluorescent lighting technologies, are longer lasting, 
are more energy-efficient and cost-competitive, and have less 
environmental impact.
    (d) Industry Alliance.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall competitively select an 
Industry Alliance to represent participants who are private, for-profit 
firms, open to large and small businesses, that, as a group, are 
broadly representative of United States solid-state lighting research, 
development, infrastructure, and manufacturing expertise as a whole.
    (e) Research.--
        (1) Grants.--The Secretary shall carry out the research 
    activities of the Initiative through competitively awarded grants 
    to--
            (A) researchers, including Industry Alliance participants;
            (B) small businesses;
            (C) National Laboratories; and
            (D) institutions of higher education.
        (2) Industry alliance.--The Secretary shall annually solicit 
    from the Industry Alliance--
            (A) comments to identify solid-state lighting technology 
        needs;
            (B) an assessment of the progress of the research 
        activities of the Initiative; and
            (C) assistance in annually updating solid-state lighting 
        technology roadmaps.
        (3) Availability to public.--The information and roadmaps under 
    paragraph (2) shall be available to the public.
    (f) Development, Demonstration, and Commercial Application.--
        (1) In general.--The Secretary shall carry out a development, 
    demonstration, and commercial application program for the 
    Initiative through competitively selected awards.
        (2) Preference.--In making the awards, the Secretary may give 
    preference to participants in the Industry Alliance.
    (g) Cost Sharing.--In carrying out this section, the Secretary 
shall require cost sharing in accordance with section 988.
    (h) Intellectual Property.--The Secretary may require (in 
accordance with section 202(a)(ii) of title 35, United States Code, 
section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 
section 9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908)) that for any new invention developed under 
subsection (e)--
        (1) that the Industry Alliance participants who are active 
    participants in research, development, and demonstration activities 
    related to the advanced solid-state lighting technologies that are 
    covered by this section shall be granted the first option to 
    negotiate with the invention owner, at least in the field of solid-
    state lighting, nonexclusive licenses and royalties on terms that 
    are reasonable under the circumstances;
        (2)(A) that, for 1 year after a United States patent is issued 
    for the invention, the patent holder shall not negotiate any 
    license or royalty with any entity that is not a participant in the 
    Industry Alliance described in paragraph (1); and
        (B) that, during the year described in subparagraph (A), the 
    patent holder shall negotiate nonexclusive licenses and royalties 
    in good faith with any interested participant in the Industry 
    Alliance described in paragraph (1); and
        (3) such other terms as the Secretary determines are required 
    to promote accelerated commercialization of inventions made under 
    the Initiative.
    (i) National Academy Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct periodic 
reviews of the Initiative.

SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Director of the Office of Science and 
    Technology Policy shall establish an interagency group to develop, 
    in coordination with the advisory committee established under 
    subsection (e), a National Building Performance Initiative 
    (referred to in this section as the ``Initiative'').
        (2) Cochairs.--The interagency group shall be co-chaired by 
    appropriate officials of the Department and the Department of 
    Commerce, who shall jointly arrange for the provision of necessary 
    administrative support to the group.
    (b) Integration of Efforts.--The Initiative shall integrate 
Federal, State, and voluntary private sector efforts to reduce the 
costs of construction, operation, maintenance, and renovation of 
commercial, industrial, institutional, and residential buildings.
    (c) Plan.--
        (1) In general.--Not later than 1 year after the date of 
    enactment of this Act, the interagency group shall submit to 
    Congress a plan for carrying out the appropriate Federal role in 
    the Initiative.
        (2) Inclusions.--The plan shall include--
            (A) research, development, demonstration, and commercial 
        application of energy technology systems and materials for new 
        construction and retrofit relating to the building envelope and 
        building system components;
            (B) research, development, demonstration, and commercial 
        application of energy technology and infrastructure enabling 
        the energy efficient, automated operation of buildings and 
        building equipment; and
            (C) the collection, analysis, and dissemination of research 
        results and other pertinent information on enhancing building 
        performance to industry, government entities, and the public.
    (d) Department of Energy Role.--Within the Federal portion of the 
Initiative, the Department shall be the lead agency for all aspects of 
building performance related to use and conservation of energy.
    (e) Advisory Committee.--The Director of the Office of Science and 
Technology Policy shall establish an advisory committee to--
        (1) analyze and provide recommendations on potential private 
    sector roles and participation in the Initiative; and
        (2) review and provide recommendations on the plan described in 
    subsection (c).
    (f) Administration.--Nothing in this section provides any Federal 
agency with new authority to regulate building performance.

SEC. 914. BUILDING STANDARDS.

    (a) Definition of High Performance Building.--In this section, the 
term ``high performance building'' means a building that integrates and 
optimizes all major high-performance building attributes, including 
energy efficiency, durability, life-cycle performance, and occupant 
productivity.
    (b) Assessment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall enter into an agreement with 
the National Institute of Building Sciences to--
        (1) conduct an assessment (in cooperation with industry, 
    standards development organizations, and other entities, as 
    appropriate) of whether the current voluntary consensus standards 
    and rating systems for high performance buildings are consistent 
    with the current technological state of the art, including relevant 
    results from the research, development and demonstration activities 
    of the Department;
        (2) determine if additional research is required, based on the 
    findings of the assessment; and
        (3) recommend steps for the Secretary to accelerate the 
    development of voluntary consensus-based standards for high 
    performance buildings that are based on the findings of the 
    assessment.
    (c) Grant and Technical Assistance Program.--Consistent with 
subsection (b) and section 12(d) of the National Technology Transfer 
and Advancement Act of 1995 (15 U.S.C. 272 note), the Secretary shall 
establish a grant and technical assistance program to support the 
development of voluntary consensus-based standards for high performance 
buildings.

SEC. 915. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--In this section:
        (1) 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.
        (2) 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.
    (b) Program.--
        (1) In general.--The Secretary shall establish and conduct a 
    program of research, development, demonstration, and commercial 
    application of energy technology for the secondary use of 
    batteries, if the Secretary finds that there are sufficient numbers 
    of batteries to support the program.
        (2) Administration.--The program shall be--
            (A) designed to demonstrate the use of batteries in 
        secondary applications, including utility and commercial power 
        storage and power quality;
            (B) 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
            (C) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (c) Solicitation.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary shall solicit proposals to 
    demonstrate the secondary use of batteries and associated equipment 
    and supporting infrastructure in geographic locations throughout 
    the United States.
        (2) Additional solicitations.--The Secretary may make 
    additional solicitations for proposals if the Secretary determines 
    that the solicitations are necessary to carry out this section.
    (d) Selection of Proposals.--
        (1) In general.--Not later than 90 days after the closing date 
    established by the Secretary for receipt of proposals under 
    subsection (c), the Secretary shall select up to five proposals 
    that may receive financial assistance under this section once the 
    Department receives appropriated funds to carry out this section.
        (2) Factors.--In selecting proposals, the Secretary shall 
    consider--
            (A) the diversity of battery type;
            (B) geographic and climatic diversity; and
            (C) life-cycle environmental effects of the approaches.
        (3) Limitation.--No one project selected under this section 
    shall receive more than 25 percent of the funds made available to 
    carry out the program under this section.
        (4) Non-federal involvement.--In selecting proposals, 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.--In selecting proposals, the Secretary may 
    consider such other criteria as the Secretary considers 
    appropriate.
    (e) Conditions.--In carrying out this section, the Secretary shall 
require that--
        (1) relevant information be provided to--
            (A) the Department;
            (B) the users of the batteries;
            (C) the proposers of a project under this section; and
            (D) the battery manufacturers; and
        (2) the costs of carrying out projects and activities under 
    this section are shared in accordance with section 988.

SEC. 916. ENERGY EFFICIENCY SCIENCE INITIATIVE.

    (a) Establishment.--The Secretary shall establish an Energy 
Efficiency Science Initiative to be managed by the Assistant Secretary 
in the Department with responsibility for energy conservation under 
section 203(a)(9) of the Department of Energy Organization Act (42 
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of 
Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
    (b) Report.--The Secretary shall submit to Congress, along with the 
annual budget request of the President submitted to Congress, a report 
on the activities of the Energy Efficiency Science Initiative, 
including a description of the process used to award the funds and an 
explanation of how the research relates to energy efficiency.

SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.

    (a) 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 
Efficiency Technology Transfer Centers, to be located in areas the 
Secretary determines have the greatest need of the services of such 
Centers. In establishing the network, the Secretary shall consider the 
special needs and opportunities for increased energy efficiency for 
manufactured and site-built housing.
    (b) Activities.--
        (1) 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.
        (2) Advisory panel.--Each Center shall establish an advisory 
    panel to advise the Center on how best to accomplish the activities 
    under paragraph (1).
    (c) Application.--A person seeking a grant under this section shall 
submit to the Secretary an application in such form and containing such 
information as the Secretary may require. The Secretary may award a 
grant under this section to an entity already in existence if the 
entity is otherwise eligible under this section.
    (d) Selection Criteria.--The Secretary shall award grants under 
this section on the basis of the following criteria, at a minimum:
        (1) The ability of the applicant to carry out the activities 
    described in subsection (b)(1).
        (2) 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.
    (e) Cost-Sharing.--In carrying out this section, the Secretary 
shall require cost-sharing in accordance with the requirements of 
section 988 for commercial application activities.
    (f) Advisory Committee.--The Secretary shall establish an advisory 
committee to advise the Secretary on the establishment of Centers under 
this section. The advisory committee shall be composed of individuals 
with expertise in the area of advanced energy methods and technologies, 
including at least one representative from--
        (1) State or local energy offices;
        (2) energy professionals;
        (3) trade or professional associations;
        (4) architects, engineers, or construction professionals;
        (5) manufacturers;
        (6) the research community; and
        (7) nonprofit energy or environmental organizations.
    (g) Definitions.--For purposes of this section:
        (1) 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.
        (2) Center.--The term ``Center'' means an Advanced Energy 
    Technology Transfer Center established pursuant to this section.
        (3) 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.
    (h) Authorization of Appropriations.--In addition to amounts 
otherwise authorized to be appropriated in section 911, there are 
authorized to be appropriated for the program under this section such 
sums as may be appropriated.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--The Secretary shall carry out programs of 
research, development, demonstration, and commercial application on 
distributed energy resources and systems reliability and efficiency, to 
improve the reliability and efficiency of distributed energy resources 
and systems, integrating advanced energy technologies with grid 
connectivity, including activities described in this subtitle. The 
programs shall address advanced energy technologies and systems and 
advanced grid reliability technologies.
    (b) Authorization of Appropriations.--
        (1) Distributed energy and electric energy systems 
    activities.--There are authorized to be appropriated to the 
    Secretary to carry out distributed energy and electric energy 
    systems activities, including activities authorized under this 
    subtitle--
            (A) $240,000,000 for fiscal year 2007;
            (B) $255,000,000 for fiscal year 2008; and
            (C) $273,000,000 for fiscal year 2009.
        (2) Power delivery research initiative.--There are authorized 
    to be appropriated to the Secretary to carry out the Power Delivery 
    Research Initiative under subsection 925(e) such sums as may be 
    necessary for each of fiscal years 2007 through 2009.
    (c) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (b), $20,000,000 for each of fiscal years 2007 and 
2008 shall be available to carry out activities under section 923.
    (d) High-Voltage Transmission Lines.--From amounts authorized under 
subsection (b), $2,000,000 for fiscal year 2007 shall be available to 
carry out activities under section 925(g).

SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM.

    (a) In General.--The Secretary shall establish a comprehensive 
research, development, demonstration, and commercial application to 
improve the energy efficiency of high power density facilities, 
including data centers, server farms, and telecommunications 
facilities.
    (b) Technologies.--The program shall consider technologies that 
provide significant improvement in thermal controls, metering, load 
management, peak load reduction, or the efficient cooling of 
electronics.

SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY.

    (a) In General.--The Secretary shall make competitive, merit-based 
grants to consortia for the development of micro-cogeneration energy 
technology.
    (b) Uses.--The consortia shall explore--
        (1) the use of small-scale combined heat and power in 
    residential heating appliances;
        (2) the use of excess power to operate other appliances within 
    the residence; and
        (3) the supply of excess generated power to the power grid.

SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAMS.

    (a) Coordinating Consortia Program.--The Secretary may provide 
financial assistance to coordinating consortia of interdisciplinary 
participants for demonstrations designed to accelerate the use of 
distributed energy technologies (such as fuel cells, microturbines, 
reciprocating engines, thermally activated technologies, and combined 
heat and power systems) in high-energy intensive commercial 
applications.
    (b) Small-Scale Portable Power Program.--
        (1) In general.--The Secretary shall--
            (A) establish a research, development, and demonstration 
        program to develop working models of small scale portable power 
        devices; and
            (B) to the fullest extent practicable, identify and utilize 
        the resources of universities that have shown expertise with 
        respect to advanced portable power devices for either civilian 
        or military use.
        (2) Organization.--The universities identified and utilized 
    under paragraph (1)(B) are authorized to establish an organization 
    to promote small scale portable power devices.
        (3) Definition.--For purposes of this subsection, the term 
    ``small scale portable power device'' means a field-deployable 
    portable mechanical or electromechanical device that can be used 
    for applications such as communications, computation, mobility 
    enhancement, weapons systems, optical devices, cooling, sensors, 
    medical devices, and active biological agent detection systems.

SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

    (a) Program.--The Secretary shall establish a comprehensive 
research, development, and demonstration program to ensure the 
reliability, efficiency, and environmental integrity of electrical 
transmission and distribution systems, which shall include--
        (1) advanced energy delivery technologies, energy storage 
    technologies, materials, and systems, giving priority to new 
    transmission technologies, including composite conductor materials 
    and other technologies that enhance reliability, operational 
    flexibility, or power-carrying capability;
        (2) advanced grid reliability and efficiency technology 
    development;
        (3) technologies contributing to significant load reductions;
        (4) advanced metering, load management, and control 
    technologies;
        (5) technologies to enhance existing grid components;
        (6) the development and use of high-temperature superconductors 
    to--
            (A) enhance the reliability, operational flexibility, or 
        power-carrying capability of electric transmission or 
        distribution systems; or
            (B) increase the efficiency of electric energy generation, 
        transmission, distribution, or storage systems;
        (7) integration of power systems, including systems to deliver 
    high-quality electric power, electric power reliability, and 
    combined heat and power;
        (8) supply of electricity to the power grid by small scale, 
    distributed and residential-based power generators;
        (9) the development and use of advanced grid design, operation, 
    and planning tools;
        (10) any other infrastructure technologies, as appropriate; and
        (11) technology transfer and education.
    (b) Program Plan.--
        (1) In general.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary, in consultation with other 
    appropriate Federal agencies, shall prepare and submit to Congress 
    a 5-year program plan to guide activities under this section.
        (2) Consultation.--In preparing the program plan, the Secretary 
    shall consult with--
            (A) utilities;
            (B) energy service providers;
            (C) manufacturers;
            (D) institutions of higher education;
            (E) other appropriate State and local agencies;
            (F) environmental organizations;
            (G) professional and technical societies; and
            (H) any other persons the Secretary considers appropriate.
    (c) Implementation.--The Secretary shall consider implementing the 
program under this section using a consortium of participants from 
industry, institutions of higher education, and National Laboratories.
    (d) Report.--Not later than 2 years after the submission of the 
plan under subsection (b), the Secretary shall submit to Congress a 
report--
        (1) describing the progress made under this section; and
        (2) identifying any additional resources needed to continue the 
    development and commercial application of transmission and 
    distribution of infrastructure technologies.
    (e) Power Delivery Research Initiative.--
        (1) In general.--The Secretary shall establish a research, 
    development, and demonstration initiative specifically focused on 
    power delivery using components incorporating high temperature 
    superconductivity.
        (2) Goals.--The goals of the Initiative shall be--
            (A) to establish world-class facilities to develop high 
        temperature superconductivity power applications in partnership 
        with manufacturers and utilities;
            (B) to provide technical leadership for establishing 
        reliability for high temperature superconductivity power 
        applications, including suitable modeling and analysis;
            (C) to facilitate the commercial transition toward direct 
        current power transmission, storage, and use for high power 
        systems using high temperature superconductivity; and
            (D) to facilitate the integration of very low impedance 
        high temperature superconducting wires and cables in existing 
        electric networks to improve system performance, power flow 
        control, and reliability.
        (3) Inclusions.--The Initiative shall include--
            (A) feasibility analysis, planning, research, and design to 
        construct demonstrations of superconducting links in high 
        power, direct current, and controllable alternating current 
        transmission systems;
            (B) public-private partnerships to demonstrate deployment 
        of high temperature superconducting cable into testbeds 
        simulating a realistic transmission grid and under varying 
        transmission conditions, including actual grid insertions; and
            (C) testbeds developed in cooperation with National 
        Laboratories, industries, and institutions of higher education 
        to--
                (i) demonstrate those technologies;
                (ii) prepare the technologies for commercial 
            introduction; and
                (iii) address cost or performance roadblocks to 
            successful commercial use.
    (f) Transmission and Distribution Grid Planning and Operations 
Initiative.--
        (1) In general.--The Secretary shall establish a research, 
    development, and demonstration initiative specifically focused on 
    tools needed to plan, operate, and expand the transmission and 
    distribution grids in the presence of competitive market mechanisms 
    for energy, load demand, customer response, and ancillary services.
        (2) Goals.--The goals of the Initiative shall be--
            (A)(i) to develop and use a geographically distributed 
        center, consisting of institutions of higher education, and 
        National Laboratories, with expertise and facilities to develop 
        the underlying theory and software for power system 
        application; and
            (ii) to ensure commercial development in partnership with 
        software vendors and utilities;
            (B) to provide technical leadership in engineering and 
        economic analysis for the reliability and efficiency of power 
        systems planning and operations in the presence of competitive 
        markets for electricity;
            (C) to model, simulate, and experiment with new market 
        mechanisms and operating practices to understand and optimize 
        those new methods before actual use; and
            (D) to provide technical support and technology transfer to 
        electric utilities and other participants in the domestic 
        electric industry and marketplace.
    (g) High-voltage Transmission Lines.--As part of the program 
described in subsection (a), the Secretary shall award a grant to a 
university research program to design and test, in consultation with 
the Tennessee Valley Authority, state-of-the-art optimization 
techniques for power flow through existing high voltage transmission 
lines.

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

    (a) In General.--
        (1) Objectives.--The Secretary shall conduct programs of 
    renewable energy research, development, demonstration, and 
    commercial application, including activities described in this 
    subtitle. Such programs shall take into consideration the following 
    objectives:
            (A) Increasing the conversion efficiency of all forms of 
        renewable energy through improved technologies.
            (B) Decreasing the cost of renewable energy generation and 
        delivery.
            (C) Promoting the diversity of the energy supply.
            (D) Decreasing the dependence of the United States on 
        foreign energy supplies.
            (E) Improving United States energy security.
            (F) Decreasing the environmental impact of energy-related 
        activities.
            (G) Increasing the export of renewable generation equipment 
        from the United States.
        (2) Programs.--
            (A) Solar energy.--The Secretary shall conduct a program of 
        research, development, demonstration, and commercial 
        application for solar energy, including--
                (i) photovoltaics;
                (ii) solar hot water and solar space heating;
                (iii) concentrating solar power;
                (iv) lighting systems that integrate sunlight and 
            electrical lighting in complement to each other in common 
            lighting fixtures for the purpose of improving energy 
            efficiency;
                (v) manufacturability of low cost, high quality solar 
            systems; and
                (vi) development of products that can be easily 
            integrated into new and existing buildings.
            (B) Wind energy.--The Secretary shall conduct a program of 
        research, development, demonstration, and commercial 
        application for wind energy, including--
                (i) low speed wind energy;
                (ii) offshore wind energy;
                (iii) testing and verification (including construction 
            and operation of a research and testing facility capable of 
            testing wind turbines); and
                (iv) distributed wind energy generation.
            (C) 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--
                (i) improving detection of geothermal resources;
                (ii) decreasing drilling costs;
                (iii) decreasing maintenance costs through improved 
            materials;
                (iv) increasing the potential for other revenue 
            sources, such as mineral production; and
                (v) increasing the understanding of reservoir life 
            cycle and management.
            (D) Hydropower.--The Secretary shall conduct a program of 
        research, development, demonstration, and commercial 
        application for cost competitive technologies that enable the 
        development of new and incremental hydropower capacity, adding 
        to the diversity of the energy supply of the United States, 
        including:
                (i) Fish-friendly large turbines.
                (ii) Advanced technologies to enhance environmental 
            performance and yield greater energy efficiencies.
            (E) Miscellaneous projects.--The Secretary shall conduct 
        research, development, demonstration, and commercial 
        application programs for--
                (i) ocean energy, including wave energy;
                (ii) the combined use of renewable energy technologies 
            with one another and with other energy technologies, 
            including the combined use of wind power and coal 
            gasification technologies;
                (iii) renewable energy technologies for cogeneration of 
            hydrogen and electricity; and
                (iv) kinetic hydro turbines.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out renewable energy research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle--
        (1) $632,000,000 for fiscal year 2007;
        (2) $743,000,000 for fiscal year 2008; and
        (3) $852,000,000 for fiscal year 2009.
    (c) Bioenergy.--From the amounts authorized under subsection (b), 
there are authorized to be appropriated to carry out section 932--
        (1) $213,000,000 for fiscal year 2007, of which $100,000,000 
    shall be for section 932(d);
        (2) $251,000,000 for fiscal year 2008, of which $125,000,000 
    shall be for section 932(d); and
        (3) $274,000,000 for fiscal year 2009, of which $150,000,000 
    shall be for section 932(d).
    (d) Solar Power.--From amounts authorized under subsection (b), 
there is authorized to be appropriated to carry out activities under 
subsection (a)(2)(A)--
        (1) $140,000,000 for fiscal year 2007, of which $40,000,000 
    shall be for activities under section 935;
        (2) $200,000,000 for fiscal year 2008, of which $50,000,000 
    shall be for activities under section 935; and
        (3) $250,000,000 for fiscal year 2009, of which $50,000,000 
    shall be for activities under section 935.
    (e) Administration.--Of the funds authorized under subsection (c), 
not less than $5,000,000 for each fiscal year shall be made available 
for grants to--
        (1) part B institutions;
        (2) Tribal Colleges or Universities (as defined in section 
    316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b))); 
    and
        (3) Hispanic-serving institutions.
    (f) Rural Demonstration Projects.--In carrying out this section, 
the Secretary, in consultation with the Secretary of Agriculture, shall 
demonstrate the use of renewable energy technologies to assist in 
delivering electricity to rural and remote locations including --
        (1) advanced wind power technology, including combined use with 
    coal gasification;
        (2) biomass; and
        (3) geothermal energy systems.
    (g) Analysis and Evaluation.--
        (1) In general.--The Secretary shall conduct analysis and 
    evaluation in support of the renewable energy programs under this 
    subtitle. These activities shall be used to guide budget and 
    program decisions, and shall include--
            (A) economic and technical analysis of renewable energy 
        potential, including resource assessment;
            (B) analysis of past program performance, both in terms of 
        technical advances and in market introduction of renewable 
        energy; and
            (C) any other analysis or evaluation that the Secretary 
        considers appropriate.
        (2) Funding.--The Secretary may designate up to 1 percent of 
    the funds appropriated for carrying out this subtitle for analysis 
    and evaluation activities under this subsection.

SEC. 932. BIOENERGY PROGRAM.

    (a) Definitions.--In this section:
        (1) 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.
        (2) Lignocellulosic feedstock.--The term ``lignocellulosic 
    feedstock'' means any portion of a plant or coproduct from 
    conversion, including crops, trees, forest residues, and 
    agricultural residues not specifically grown for food, including 
    from barley grain, grapeseed, rice bran, rice hulls, rice straw, 
    soybean matter, and sugarcane bagasse.
    (b) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for bioenergy, 
including--
        (1) biopower energy systems;
        (2) biofuels;
        (3) bioproducts;
        (4) integrated biorefineries that may produce biopower, 
    biofuels, and bioproducts;
        (5) cross-cutting research and development in feedstocks; and
        (6) economic analysis.
    (c) Biofuels and Bioproducts.--The goals of the biofuels and 
bioproducts programs shall be to develop, in partnership with industry 
and institutions of higher education--
        (1) advanced biochemical and thermochemical conversion 
    technologies capable of making fuels from lignocellulosic 
    feedstocks that are price-competitive with gasoline or diesel in 
    either internal combustion engines or fuel cell-powered vehicles;
        (2) advanced biotechnology processes capable of making biofuels 
    and bioproducts with emphasis on development of biorefinery 
    technologies using enzyme-based processing systems;
        (3) advanced biotechnology processes capable of increasing 
    energy production from lignocellulosic feedstocks, with emphasis on 
    reducing the dependence of industry on fossil fuels in 
    manufacturing facilities; and
        (4) other advanced processes that will enable the development 
    of cost-effective bioproducts, including biofuels.
    (d) Integrated Biorefinery Demonstration Projects.--
        (1) In general.--The Secretary shall carry out a program to 
    demonstrate the commercial application of 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. In making awards under this subsection, 
    the Secretary shall encourage--
            (A) the demonstration of a wide variety of lignocellulosic 
        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.
    (e) University Biodiesel Program.--The Secretary shall establish a 
demonstration program to determine the feasibility of the operation of 
diesel electric power generators, using biodiesel fuels with ratings as 
high as B100, at electric generation facilities owned by institutions 
of higher education. The program shall examine--
        (1) heat rates of diesel fuels with large quantities of 
    cellulosic content;
        (2) the reliability of operation of various fuel blends;
        (3) performance in cold or freezing weather;
        (4) stability of fuel after extended storage; and
        (5) other criteria, as determined by the Secretary.

SEC. 933. LOW-COST RENEWABLE HYDROGEN AND INFRASTRUCTURE FOR VEHICLE 
              PROPULSION.

    The Secretary shall--
        (1) establish a research, development, and demonstration 
    program to determine the feasibility of using hydrogen propulsion 
    in light-weight vehicles and the integration of the associated 
    hydrogen production infrastructure using off-the-shelf components; 
    and
        (2) identify universities and institutions that--
            (A) have expertise in researching and testing vehicles 
        fueled by hydrogen, methane, and other fuels;
            (B) have expertise in integrating off-the-shelf components 
        to minimize cost; and
            (C) within 2 years can test a vehicle based on an existing 
        commercially available platform with a curb weight of not less 
        than 2,000 pounds before modifications, that--
                (i) operates solely on hydrogen;
                (ii) qualifies as a light-duty passenger vehicle; and
                (iii) uses hydrogen produced from water using only 
            solar energy.

SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

    (a) In General.--The Secretary shall conduct a program of research 
and development to evaluate the potential for concentrating solar power 
for hydrogen production, including cogeneration approaches for both 
hydrogen and electricity.
    (b) Administration.--The program shall take advantage of existing 
facilities to the extent practicable and shall include--
        (1) development of optimized technologies that are common to 
    both electricity and hydrogen production;
        (2) evaluation of thermochemical cycles for hydrogen production 
    at the temperatures attainable with concentrating solar power;
        (3) evaluation of materials issues for the thermochemical 
    cycles described in paragraph (2);
        (4) cogeneration of solar thermal electric power and photo-
    synthetic-based hydrogen production;
        (5) system architectures and economics studies; and
        (6) coordination with activities under the Next Generation 
    Nuclear Plant Project established under subtitle C of title VI on 
    high temperature materials, thermochemical cycles, and economic 
    issues.
    (c) Assessment.--In carrying out the program under this section, 
the Secretary shall--
        (1) assess conflicting guidance on the economic potential of 
    concentrating solar power for electricity production received from 
    the National Research Council in the report entitled ``Renewable 
    Power Pathways: A Review of the U.S. Department of Energy's 
    Renewable Energy Programs'' and dated 2000 and subsequent reviews 
    of that report funded by the Department; and
        (2) provide an assessment of the potential impact of technology 
    used to concentrate solar power for electricity before, or 
    concurrent with, submission of the budget for fiscal year 2008.
    (d) Report.--Not later than 5 years after the date of enactment of 
this Act, the Secretary shall provide to Congress a report on the 
economic and technical potential for electricity or hydrogen 
production, with or without cogeneration, with concentrating solar 
power, including the economic and technical feasibility of potential 
construction of a pilot demonstration facility suitable for commercial 
production of electricity or hydrogen from concentrating solar power.

SEC. 935. RENEWABLE ENERGY IN PUBLIC BUILDINGS.

    (a) Demonstration and Technology Transfer Program.--The Secretary 
shall establish a program for the demonstration of innovative 
technologies for solar and other renewable energy sources in buildings 
owned or operated by a State or local government, and for the 
dissemination of information resulting from such demonstration to 
interested parties.
    (b) Limit on Federal Funding.--Notwithstanding section 988, the 
Secretary shall provide under this section no more than 40 percent of 
the incremental costs of the solar or other renewable energy source 
project funded.
    (c) Requirements.--As part of the application for awards under this 
section, the Secretary shall require all applicants---
        (1) to demonstrate a continuing commitment to the use of solar 
    and other renewable energy sources in buildings they own or 
    operate; and
        (2) to state how they expect any award to further their 
    transition to the significant use of renewable energy.

   Subtitle D--Agricultural Biomass Research and Development Programs

SEC. 941. AMENDMENTS TO THE BIOMASS RESEARCH AND DEVELOPMENT ACT OF 
              2000.

    (a) Definitions.--Section 303 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is 
amended--
        (1) by striking paragraphs (2), (9), and (10);
        (2) by redesignating paragraphs (3), (4), (5), (6), (7), and 
    (8) as paragraphs (4), (5), (7), (8), (9), and (10), respectively;
        (3) by inserting after paragraph (1) the following:
        ``(2) Biobased fuel.--The term `biobased fuel' means any 
    transportation fuel produced from biomass.
        ``(3) Biobased product.--The term `biobased product' means an 
    industrial product (including chemicals, materials, and polymers) 
    produced from biomass, or a commercial or industrial product 
    (including animal feed and electric power) derived in connection 
    with the conversion of biomass to fuel.'';
        (4) by inserting after paragraph (5) (as redesignated by 
    paragraph (2)) the following:
        ``(6) Demonstration.--The term `demonstration' means 
    demonstration of technology in a pilot plant or semi-works scale 
    facility.''; and
        (5) by striking paragraph (9) (as redesignated by paragraph 
    (2)) and inserting the following:
        ``(9) National laboratory.--The term `National Laboratory' has 
    the meaning given that term in section 2 of the Energy Policy Act 
    of 2005.''
    (b) Cooperation and Coordination in Biomass Research and 
Development.--Section 304 of the Biomass Research and Development Act 
of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
        (1) in subsections (a) and (d), by striking ``industrial 
    products'' each place it appears and inserting ``fuels and biobased 
    products'';
        (2) by striking subsections (b) and (c); and
        (3) by redesignating subsection (d) as subsection (b).
    (c) Biomass Research and Development Board.--Section 305 of the 
Biomass Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is amended--
        (1) in subsections (a) and (c), by striking ``industrial 
    products'' each place it appears and inserting ``fuels and biobased 
    products'';
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``304(d)(1)(B)'' and 
        inserting ``304(b)(1)(B)''; and
            (B) in paragraph (2), by striking ``304(d)(1)(A)'' and 
        inserting ``304(b)(1)(A)''; and
        (3) in subsection (c)--
            (A) in paragraph (1)(B), by striking ``and'' at the end;
            (B) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (C) by adding at the end the following:
        ``(3) ensure that--
            ``(A) solicitations are open and competitive with awards 
        made annually; and
            ``(B) objectives and evaluation criteria of the 
        solicitations are clearly stated and minimally prescriptive, 
        with no areas of special interest; and
        ``(4) ensure that the panel of scientific and technical peers 
    assembled under section 307(g)(1)(C) to review proposals is 
    composed predominantly of independent experts selected from outside 
    the Departments of Agriculture and Energy.''.
    (d) Biomass Research and Development Technical Advisory 
Committee.--Section 306 of the Biomass Research and Development Act of 
2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
        (1) in subsection (b)(1)--
            (A) in subparagraph (A), by striking ``biobased industrial 
        products'' and inserting ``biofuels'';
            (B) by redesignating subparagraphs (B) through (J) as 
        subparagraphs (C) through (K), respectively;
            (C) by inserting after subparagraph (A) the following:
            ``(B) an individual affiliated with the biobased industrial 
        and commercial products industry;'';
            (D) in subparagraph (F) (as redesignated by subparagraph 
        (B)) by striking ``an individual has'' and inserting ``2 
        individuals have'';
            (E) in subparagraphs (C), (D), (G), and (I) (as 
        redesignated by subparagraph (B)) by striking ``industrial 
        products'' each place it appears and inserting ``fuels and 
        biobased products''; and
            (F) in subparagraph (H) (as redesignated by subparagraph 
        (B)), by inserting ``and environmental'' before ``analysis'';
        (2) in subsection (c)(2)--
            (A) in subparagraph (A), by striking ``goals'' and 
        inserting ``objectives, purposes, and considerations'';
            (B) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively;
            (C) by inserting after subparagraph (A) the following:
            ``(B) solicitations are open and competitive with awards 
        made annually and that objectives and evaluation criteria of 
        the solicitations are clearly stated and minimally 
        prescriptive, with no areas of special interest;''; and
            (D) in subparagraph (C) (as redesignated by subparagraph 
        (B)) by inserting ``predominantly from outside the Departments 
        of Agriculture and Energy'' after ``technical peers''.
    (e) Biomass Research and Development Initiative.--Section 307 of 
the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is amended--
        (1) in subsection (a), by striking ``research on biobased 
    industrial products'' and inserting ``research on, and development 
    and demonstration of, biobased fuels and biobased products, and the 
    methods, practices and technologies, for their production''; and
        (2) by striking subsections (b) through (e) and inserting the 
    following:
    ``(b) Objectives.--The objectives of the Initiative are to 
develop--
        ``(1) technologies and processes necessary for abundant 
    commercial production of biobased fuels at prices competitive with 
    fossil fuels;
        ``(2) high-value biobased products--
            ``(A) to enhance the economic viability of biobased fuels 
        and power; and
            ``(B) as substitutes for petroleum-based feedstocks and 
        products; and
        ``(3) a diversity of sustainable domestic sources of biomass 
    for conversion to biobased fuels and biobased products.
    ``(c) Purposes.--The purposes of the Initiative are--
        ``(1) to increase the energy security of the United States;
        ``(2) to create jobs and enhance the economic development of 
    the rural economy;
        ``(3) to enhance the environment and public health; and
        ``(4) to diversify markets for raw agricultural and forestry 
    products.
    ``(d) Technical Areas.--To advance the objectives and purposes of 
the Initiative, the Secretary of Agriculture and the Secretary of 
Energy, in consultation with the Administrator of the Environmental 
Protection Agency and heads of other appropriate departments and 
agencies (referred to in this section as the `Secretaries'), shall 
direct research and development toward--
        ``(1) feedstock production through the development of crops and 
    cropping systems relevant to production of raw materials for 
    conversion to biobased fuels and biobased products, including--
            ``(A) development of advanced and dedicated crops with 
        desired features, including enhanced productivity, broader site 
        range, low requirements for chemical inputs, and enhanced 
        processing;
            ``(B) advanced crop production methods to achieve the 
        features described in subparagraph (A);
            ``(C) feedstock harvest, handling, transport, and storage; 
        and
            ``(D) strategies for integrating feedstock production into 
        existing managed land;
        ``(2) overcoming recalcitrance of cellulosic biomass through 
    developing technologies for converting cellulosic biomass into 
    intermediates that can subsequently be converted into biobased 
    fuels and biobased products, including--
            ``(A) pretreatment in combination with enzymatic or 
        microbial hydrolysis; and
            ``(B) thermochemical approaches, including gasification and 
        pyrolysis;
        ``(3) product diversification through technologies relevant to 
    production of a range of biobased products (including chemicals, 
    animal feeds, and cogenerated power) that eventually can increase 
    the feasibility of fuel production in a biorefinery, including--
            ``(A) catalytic processing, including thermochemical fuel 
        production;
            ``(B) metabolic engineering, enzyme engineering, and 
        fermentation systems for biological production of desired 
        products or cogeneration of power;
            ``(C) product recovery;
            ``(D) power production technologies; and
            ``(E) integration into existing biomass processing 
        facilities, including starch ethanol plants, paper mills, and 
        power plants; and
        ``(4) analysis that provides strategic guidance for the 
    application of biomass technologies in accordance with realization 
    of improved sustainability and environmental quality, cost 
    effectiveness, security, and rural economic development, usually 
    featuring system-wide approaches.
    ``(e) Additional Considerations.--Within the technical areas 
described in subsection (d), and in addition to advancing the purposes 
described in subsection (c) and the objectives described in subsection 
(b), the Secretaries shall support research and development--
        ``(1) to create continuously expanding opportunities for 
    participants in existing biofuels production by seeking synergies 
    and continuity with current technologies and practices, such as the 
    use of dried distillers grains as a bridge feedstock;
        ``(2) to maximize the environmental, economic, and social 
    benefits of production of biobased fuels and biobased products on a 
    large scale through life-cycle economic and environmental analysis 
    and other means; and
        ``(3) to assess the potential of Federal land and land 
    management programs as feedstock resources for biobased fuels and 
    biobased products, consistent with the integrity of soil and water 
    resources and with other environmental considerations.
    ``(f) Eligible Entities.--To be eligible for a grant, contract, or 
assistance under this section, an applicant shall be--
        ``(1) an institution of higher education;
        ``(2) a National Laboratory;
        ``(3) a Federal research agency;
        ``(4) a State research agency;
        ``(5) a private sector entity;
        ``(6) a nonprofit organization; or
        ``(7) a consortium of two or more entities described in 
    paragraphs (1) through (6).
    ``(g) Administration.--
        ``(1) In general.--After consultation with the Board, the 
    points of contact shall--
            ``(A) publish annually one or more joint requests for 
        proposals for grants, contracts, and assistance under this 
        section;
            ``(B) require that grants, contracts, and assistance under 
        this section be awarded competitively, on the basis of merit, 
        after the establishment of procedures that provide for 
        scientific peer review by an independent panel of scientific 
        and technical peers; and
            ``(C) give some preference to applications that--
                ``(i) involve a consortia of experts from multiple 
            institutions;
                ``(ii) encourage the integration of disciplines and 
            application of the best technical resources; and
                ``(iii) increase the geographic diversity of 
            demonstration projects.
        ``(2) Distribution of funding by technical area.--Of the funds 
    authorized to be appropriated for activities described in this 
    section, funds shall be distributed for each of fiscal years 2007 
    through 2010 so as to achieve an approximate distribution of--
            ``(A) 20 percent of the funds to carry out activities for 
        feedstock production under subsection (d)(1);
            ``(B) 45 percent of the funds to carry out activities for 
        overcoming recalcitrance of cellulosic biomass under subsection 
        (d)(2);
            ``(C) 30 percent of the funds to carry out activities for 
        product diversification under subsection (d)(3); and
            ``(D) 5 percent of the funds to carry out activities for 
        strategic guidance under subsection (d)(4).
        ``(3) Distribution of funding within each technical area.--
    Within each technical area described in paragraphs (1) through (3) 
    of subsection (d), funds shall be distributed for each of fiscal 
    years 2007 through 2010 so as to achieve an approximate 
    distribution of--
            ``(A) 15 percent of the funds for applied fundamentals;
            ``(B) 35 percent of the funds for innovation; and
            ``(C) 50 percent of the funds for demonstration.
        ``(4) Matching funds.--
            ``(A) In general.--A minimum 20 percent funding match shall 
        be required for demonstration projects under this title.
            ``(B) Commercial applications.--A minimum of 50 percent 
        funding match shall be required for commercial application 
        projects under this title.
        ``(5) Technology and information transfer to agricultural 
    users.--The Administrator of the Cooperative State Research, 
    Education, and Extension Service and the Chief of the Natural 
    Resources Conservation Service shall ensure that applicable 
    research results and technologies from the Initiative are adapted, 
    made available, and disseminated through those services, as 
    appropriate.''.
    (f) Annual Reports.--Section 309 of the Biomass Research and 
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by striking ``purposes 
            described in section 307(b)'' and inserting ``objectives, 
            purposes, and additional considerations described in 
            subsections (b) through (e) of section 307'';
                (ii) in subparagraph (B), by striking ``and'' at the 
            end;
                (iii) by redesignating subparagraph (C) as subparagraph 
            (D); and
                (iv) by inserting after subparagraph (B) the following:
            ``(C) achieves the distribution of funds described in 
        paragraphs (2) and (3) of section 307(g); and''; and
            (B) in paragraph (2), by striking ``industrial products'' 
        and inserting ``fuels and biobased products''; and
        (2) by adding at the end the following:
    ``(c) Updates.--The Secretary and the Secretary of Energy shall 
update the Vision and Roadmap documents prepared for Federal biomass 
research and development activities.''.
    (g) Authorization of Appropriations.--Section 310(b) of the Biomass 
Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is amended by striking ``title $54,000,000 for each of fiscal 
years 2002 through 2007'' and inserting ``title $200,000,000 for each 
of fiscal years 2006 through 2015''.
    (h) Repeal of Sunset Provision.--Section 311 of the Biomass 
Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
note) is repealed.

SEC. 942. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

    (a) Purpose.--The purpose of this section is to--
        (1) accelerate deployment and commercialization of biofuels;
        (2) deliver the first 1,000,000,000 gallons in annual 
    cellulosic biofuels production by 2015;
        (3) ensure biofuels produced after 2015 are cost competitive 
    with gasoline and diesel; and
        (4) ensure that small feedstock producers and rural small 
    businesses are full participants in the development of the 
    cellulosic biofuels industry.
    (b) Definitions.--In this section:
        (1) Cellulosic biofuels.--The term ``cellulosic biofuels'' 
    means any fuel that is produced from cellulosic feedstocks.
        (2) Eligible entity.--The term ``eligible entity'' means a 
    producer of fuel from cellulosic biofuels the production facility 
    of which--
            (A) is located in the United States;
            (B) meets all applicable Federal and State permitting 
        requirements; and
            (C) meets any financial criteria established by the 
        Secretary.
    (c) Program.--
        (1) Establishment.--The Secretary, in consultation with the 
    Secretary of Agriculture, the Secretary of Defense, and the 
    Administrator of the Environmental Protection Agency, shall 
    establish an incentive program for the production of cellulosic 
    biofuels.
        (2) Basis of incentives.--Under the program, the Secretary 
    shall award production incentives on a per gallon basis of 
    cellulosic biofuels from eligible entities, through--
            (A) set payments per gallon of cellulosic biofuels produced 
        in an amount determined by the Secretary, until initiation of 
        the first reverse auction; and
            (B) reverse auction thereafter.
        (3) First reverse auction.--The first reverse auction shall be 
    held on the earlier of--
            (A) not later than 1 year after the first year of annual 
        production in the United States of 100,000,000 gallons of 
        cellulosic biofuels, as determined by the Secretary; or
            (B) not later than 3 years after the date of enactment of 
        this Act.
        (4) Reverse auction procedure.--
            (A) In general.--On initiation of the first reverse 
        auction, and each year thereafter until the earlier of the 
        first year of annual production in the United States of 
        1,000,000,000 gallons of cellulosic biofuels, as determined by 
        the Secretary, or 10 years after the date of enactment of this 
        Act, the Secretary shall conduct a reverse auction at which--
                (i) the Secretary shall solicit bids from eligible 
            entities;
                (ii) eligible entities shall submit--

                    (I) a desired level of production incentive on a 
                per gallon basis; and
                    (II) an estimated annual production amount in 
                gallons; and

                (iii) the Secretary shall issue awards for the 
            production amount submitted, beginning with the eligible 
            entity submitting the bid for the lowest level of 
            production incentive on a per gallon basis and meeting such 
            other criteria as are established by the Secretary, until 
            the amount of funds available for the reverse auction is 
            committed.
            (B) Amount of incentive received.--An eligible entity 
        selected by the Secretary through a reverse auction shall 
        receive the amount of performance incentive requested in the 
        auction for each gallon produced and sold by the entity during 
        the first 6 years of operation.
            (C) Commencement of production of cellulosic biofuels.--As 
        a condition of the receipt of an award under this section, an 
        eligible entity shall enter into an agreement with the 
        Secretary under which the eligible entity agrees to begin 
        production of cellulosic biofuels not later than 3 years after 
        the date of the reverse auction in which the eligible entity 
        participates.
    (d) Limitations.--Awards under this section shall be limited to--
        (1) a per gallon amount determined by the Secretary during the 
    first 4 years of the program;
        (2) a declining per gallon cap over the remaining lifetime of 
    the program, to be established by the Secretary so that cellulosic 
    biofuels produced after the first year of annual cellulosic 
    biofuels production in the United States in excess of 1,000,000,000 
    gallons are cost competitive with gasoline and diesel;
        (3) not more than 25 percent of the funds committed within each 
    reverse auction to any 1 project;
        (4) not more than $100,000,000 in any 1 year; and
        (5) not more than $1,000,000,000 over the lifetime of the 
    program.
    (e) Priority.--In selecting a project under the program, the 
Secretary shall give priority to projects that--
        (1) demonstrate outstanding potential for local and regional 
    economic development;
        (2) include agricultural producers or cooperatives of 
    agricultural producers as equity partners in the ventures; and
        (3) have a strategic agreement in place to fairly reward 
    feedstock suppliers.
    (f) Authorizations of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000.

SEC. 943. PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Federal Procurement.--
        (1) Definition of procuring agency.--Section 9001 of the Farm 
    Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is 
    amended--
            (A) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively; and
            (B) by inserting after paragraph (3) the following:
        ``(4) Procuring agency.--The term `procuring agency' means--
            ``(A) any Federal agency that is using Federal funds for 
        procurement; or
            ``(B) any person contracting with any Federal agency with 
        respect to work performed under the contract.''.
        (2) Procurement.--Section 9002 of the Farm Security and Rural 
    Investment Act of 2002 (7 U.S.C. 8102) is amended--
            (A) by striking ``Federal agency'' each place it appears 
        (other than in subsections (f) and (g)) and inserting 
        ``procuring agency'';
            (B) in subsection (c)(2)--
                (i) by striking ``(2)'' and all that follows through 
            ``Notwithstanding'' and inserting the following:
        ``(2) Flexibility.--Notwithstanding'';
                (ii) by striking ``an agency'' and inserting ``a 
            procuring agency''; and
                (iii) by striking ``the agency'' and inserting ``the 
            procuring agency'';
            (C) in subsection (d), by striking ``procured by Federal 
        agencies'' and inserting ``procured by procuring agencies''; 
        and
            (D) in subsection (f), by striking ``Federal agencies'' and 
        inserting ``procuring agencies''.
    (b) Capitol Complex Procurement.--Section 9002 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 8102) (as amended by 
subsection (a)(2)) is amended--
        (1) by redesignating subsection (j) as subsection (k); and
        (2) by inserting after subsection (i) the following:
    ``(j) Inclusion.--Not later than 90 days after the date of 
enactment of the Energy Policy Act of 2005, the Architect of the 
Capitol, the Sergeant at Arms of the Senate, and the Chief 
Administrative Officer of the House of Representatives shall establish 
procedures that apply the requirements of this section to procurement 
for the Capitol Complex.''.
    (c) Education.--
        (1) In general.--The Architect of the Capitol shall establish 
    in the Capitol Complex a program of public education regarding use 
    by the Architect of the Capitol of biobased products.
        (2) Purposes.--The purposes of the program shall be--
            (A) to establish the Capitol Complex as a showcase for the 
        existence and benefits of biobased products; and
            (B) to provide access to further information on biobased 
        products to occupants and visitors.
    (d) Procedure.--Requirements issued under the amendments made by 
subsection (b) shall be made in accordance with directives issued by 
the Committee on Rules and Administration of the Senate and the 
Committee on House Administration of the House of Representatives.

SEC. 944. SMALL BUSINESS BIOPRODUCT MARKETING AND CERTIFICATION GRANTS.

    (a) In General.--Using amounts made available under subsection (g), 
the Secretary of Agriculture (referred to in this section as the 
``Secretary'') shall make available on a competitive basis grants to 
eligible entities described in subsection (b) for the biobased product 
marketing and certification purposes described in subsection (c).
    (b) Eligible Entities.--
        (1) In general.--An entity eligible for a grant under this 
    section is any manufacturer of biobased products that--
            (A) proposes to use the grant for the biobased product 
        marketing and certification purposes described in subsection 
        (c); and
            (B) has not previously received a grant under this section.
        (2) Preference.--In making grants under this section, the 
    Secretary shall provide a preference to an eligible entity that has 
    fewer than 50 employees.
    (c) Biobased Product Marketing and Certification Grant Purposes.--A 
grant made under this section shall be used--
        (1) to provide working capital for marketing of biobased 
    products; and
        (2) to provide for the certification of biobased products to--
            (A) qualify for the label described in section 9002(h)(1) 
        of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8102(h)(1)); or
            (B) meet other biobased standards determined appropriate by 
        the Secretary.
    (d) Matching Funds.--
        (1) In general.--Grant recipients shall provide matching non-
    Federal funds equal to the amount of the grant received.
        (2) Expenditure.--Matching funds shall be expended in advance 
    of grant funding, so that for every dollar of grant that is 
    advanced, an equal amount of matching funds shall have been funded 
    prior to submitting the request for reimbursement.
    (e) Amount.--A grant made under this section shall not exceed 
$100,000.
    (f) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, including 
requirements for applications for the grants, as the Secretary 
considers appropriate.
    (g) Authorizations of Appropriations.--There are authorized to be 
appropriated to make grants under this section--
        (1) $1,000,000 for fiscal year 2006; and
        (2) such sums as are necessary for each of fiscal years 2007 
    through 2015.

SEC. 945. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

    (a) In General.--Using amounts made available under subsection (g), 
the Secretary of Agriculture (referred to in this section as the 
``Secretary'') shall make available on a competitive basis grants to 
eligible entities described in subsection (b) for the purposes 
described in subsection (c).
    (b) Eligible Entities.--An entity eligible for a grant under this 
section is any regional bioeconomy development association, 
agricultural or energy trade association, or Land Grant institution 
that--
        (1) proposes to use the grant for the purposes described in 
    subsection (c); and
        (2) has not previously received a grant under this section.
    (c) Regional Bioeconomy Development Association Grant Purposes.--A 
grant made under this section shall be used to support and promote the 
growth and development of the bioeconomy within the region served by 
the eligible entity, through coordination, education, outreach, and 
other endeavors by the eligible entity.
    (d) Matching Funds.--
        (1) In general.--Grant recipients shall provide matching non-
    Federal funds equal to the amount of the grant received.
        (2) Expenditure.--Matching funds shall be expended in advance 
    of grant funding, so that for every dollar of grant that is 
    advanced, an equal amount of matching funds shall have been funded 
    prior to submitting the request for reimbursement.
    (e) Administration.--The Secretary shall establish such 
administrative requirements for grants under this section, including 
requirements for applications for the grants, as the Secretary 
considers appropriate.
    (f) Amount.--A grant made under this section shall not exceed 
$500,000.
    (g) Authorizations of Appropriations.--There are authorized to be 
appropriated to make grants under this section--
        (1) $1,000,000 for fiscal year 2006; and
        (2) such sums as are necessary for each of fiscal years 2007 
    through 2015.

SEC. 946. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

    (a) In General.--The Secretary of Agriculture (referred to in this 
section as the ``Secretary'') shall make grants available on a 
competitive basis to enterprises owned by agricultural producers, for 
the purposes of demonstrating cost-effective, cellulosic biomass 
innovations in--
        (1) preprocessing of feedstocks, including cleaning, separating 
    and sorting, mixing or blending, and chemical or biochemical 
    treatments, to add value and lower the cost of feedstock processing 
    at a biorefinery; or
        (2) 1-pass or other efficient, multiple crop harvesting 
    techniques.
    (b) Limitations on Grants.--
        (1) Number of grants.--Not more than 5 demonstration projects 
    per fiscal year shall be funded under this section.
        (2) Non-federal cost share.--The non-Federal cost share of a 
    project under this section shall be not less than 20 percent, as 
    determined by the Secretary.
    (c) Condition of Grant.--To be eligible for a grant for a project 
under this section, a recipient of a grant or a participating entity 
shall agree to use the material harvested under the project--
        (1) to produce ethanol; or
        (2) for another energy purpose, such as the generation of heat 
    or electricity.
    (d) Authorization for Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 947. EDUCATION AND OUTREACH.

    (a) In General.--The Secretary of Agriculture shall establish, 
within the Department of Agriculture or through an independent 
contracting entity, a program of education and outreach on biobased 
fuels and biobased products consisting of--
        (1) training and technical assistance programs for feedstock 
    producers to promote producer ownership, investment, and 
    participation in the operation of processing facilities; and
        (2) public education and outreach to familiarize consumers with 
    the biobased fuels and biobased products.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2006 through 2010.

SEC. 948. REPORTS.

    (a) Biobased Product Potential.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Agriculture (referred 
to in this section as the ``Secretary'') shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
        (1) describes the economic potential for the United States of 
    the widespread production and use of commercial and industrial 
    biobased products through calendar year 2025; and
        (2) as the maximum extent practicable, identifies the economic 
    potential by product area.
    (b) Analysis of Economic Indicators.--Not later than 2 years after 
the date of enactment of this Act, the Secretary shall submit to 
Congress an analysis of economic indicators of the biobased economy.

                       Subtitle E--Nuclear Energy

SEC. 951. NUCLEAR ENERGY.

    (a) In General.--The Secretary shall conduct programs of civilian 
nuclear energy research, development, demonstration, and commercial 
application, including activities described in this subtitle. Programs 
under this subtitle shall take into consideration the following 
objectives:
        (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.
        (8) Reducing the environmental impact of nuclear energy-related 
    activities.
    (b) Authorization of Appropriations for Core Programs.--There are 
authorized to be appropriated to the Secretary to carry out nuclear 
energy research, development, demonstration, and commercial application 
activities, including activities authorized under this subtitle, other 
than those described in subsection (c)--
        (1) $330,000,000 for fiscal year 2007;
        (2) $355,000,000 for fiscal year 2008; and
        (3) $495,000,000 for fiscal year 2009.
    (c) Nuclear Infrastructure and Facilities.--There are authorized to 
be appropriated to the Secretary to carry out activities under section 
955--
        (1) $135,000,000 for fiscal year 2007;
        (2) $140,000,000 for fiscal year 2008; and
        (3) $145,000,000 for fiscal year 2009.
    (d) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
        (1) For activities under section 953--
            (A) $150,000,000 for fiscal year 2007;
            (B) $155,000,000 for fiscal year 2008; and
            (C) $275,000,000 for fiscal year 2009.
        (2) For activities under section 954--
            (A) $43,600,000 for fiscal year 2007;
            (B) $50,100,000 for fiscal year 2008; and
            (C) $56,000,000 for fiscal year 2009.
        (3) For activities under section 957, $6,000,000 for each of 
    fiscal years 2007 through 2009.
    (e) Limitation.--None of the funds authorized under this section 
may be used to decommission the Fast Flux Test Facility.

SEC. 952. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Systems Support Program.--The Secretary shall 
carry out a Nuclear Energy Systems Support Program to support research 
and development activities addressing reliability, availability, 
productivity, component aging, safety, and security of existing nuclear 
power plants.
    (c) Nuclear Power 2010 Program.--
        (1) In general.--The Secretary shall carry out a Nuclear Power 
    2010 Program, consistent with recommendations of the Nuclear Energy 
    Research Advisory Committee of the Department in the report 
    entitled ``A Roadmap to Deploy New Nuclear Power Plants in the 
    United States by 2010'' and dated October 2001.
        (2) Administration.--The Program shall include--
            (A) use of the expertise and capabilities of industry, 
        institutions of higher education, and National Laboratories in 
        evaluation of advanced nuclear fuel cycles and fuels testing;
            (B) consideration of a variety of reactor designs suitable 
        for both developed and developing nations;
            (C) participation of international collaborators in 
        research, development, and design efforts, as appropriate; and
            (D) encouragement for participation by institutions of 
        higher education and industry.
    (d) Generation IV Nuclear Energy Systems Initiative.--
        (1) In general.--The Secretary shall carry out a Generation IV 
    Nuclear Energy Systems Initiative to develop an overall technology 
    plan for and to support research and development necessary to make 
    an informed technical decision about the most promising candidates 
    for eventual commercial application.
        (2) Administration.--In conducting the Initiative, the 
    Secretary shall examine advanced proliferation-resistant and 
    passively safe reactor designs, including designs that--
            (A) are economically competitive with other electric power 
        generation plants;
            (B) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (C) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (D) use improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen.

SEC. 953. ADVANCED FUEL CYCLE INITIATIVE.

    (a) In General.--The Secretary, acting through the Director of the 
Office of Nuclear Energy, Science and Technology, shall conduct an 
advanced fuel recycling technology research, development, and 
demonstration program (referred to in this section as the ``program'') 
to evaluate proliferation-resistant fuel recycling and transmutation 
technologies that 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 the 
Generation IV advanced reactor concepts.
    (b) Annual Review.--The program shall be subject to annual review 
by the Nuclear Energy Research Advisory Committee of the Department or 
other independent entity, as appropriate.
    (c) International Cooperation.--In carrying out the program, the 
Secretary is encouraged to seek opportunities to enhance the progress 
of the program through international cooperation.
    (d) Reports.--The Secretary shall submit, as part of the annual 
budget submission of the Department, a report on the activities of the 
program.

SEC. 954. 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 missions of the Department 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) 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.
    (d) 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 taking into consideration 
    effort that emphasizes research, training, and education, including 
    through the Innovations in Nuclear Infrastructure and Education 
    Program or any similar program.
    (e) 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.
    (f) Definition.--In this section, 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 subsection 
(b)(2).

SEC. 955. DEPARTMENT OF ENERGY CIVILIAN NUCLEAR INFRASTRUCTURE AND 
              FACILITIES.

    (a) In General.--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.
    (b) Duties.--In carrying out this section, 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 subtitle will be 
    generally recognized to be among the best in the world.
    (c) 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.
    (d) Transmittal to Congress.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall transmit the plan under 
subsection (c) to Congress.

SEC. 956. SECURITY OF NUCLEAR FACILITIES.

    The Secretary, acting through the Director of the Office of Nuclear 
Energy, Science and Technology, shall conduct a research and 
development program on cost-effective technologies for increasing--
        (1) the safety of nuclear facilities from natural phenomena; 
    and
        (2) the security of nuclear facilities from deliberate attacks.

SEC. 957. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

    (a) Survey.--
        (1) In general.--Not later than August 1, 2006, the Secretary 
    shall submit to Congress the results of a survey of industrial 
    applications of large radioactive sources.
        (2) Administration.--The survey shall--
            (A) consider well-logging sources as one class of 
        industrial sources;
            (B) include information on current domestic and 
        international Department, Department of Defense, State 
        Department, and commercial programs to manage and dispose of 
        radioactive sources; and
            (C) analyze available disposal options for currently 
        deployed or future sources and, if deficiencies are noted for 
        either deployed or future sources, recommend legislative 
        options that Congress may consider to remedy identified 
        deficiencies.
    (b) Plan.--
        (1) In general.--In conjunction with the survey conducted under 
    subsection (a), the Secretary shall establish a research and 
    development program to develop alternatives to sources described in 
    subsection (a) that reduce safety, environmental, or proliferation 
    risks to either workers using the sources or the public.
        (2) Accelerators.--Miniaturized particle accelerators for well-
    logging or other industrial applications and portable accelerators 
    for production of short-lived radioactive materials at an 
    industrial site shall be considered as part of the research and 
    development efforts.
        (3) Report.--Not later than August 1, 2006, the Secretary shall 
    submit to Congress a report describing the details of the program 
    plan.

                       Subtitle F--Fossil Energy

SEC. 961. FOSSIL ENERGY.

    (a) In General.--The Secretary shall carry out research, 
development, demonstration, and commercial application programs in 
fossil energy, 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 take into consideration the following 
objectives:
        (1) Increasing the energy 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 dependence of the United States on foreign 
    energy supplies.
        (5) Improving United States energy security.
        (6) Decreasing the environmental impact of energy-related 
    activities.
        (7) Increasing the export of fossil energy-related equipment, 
    technology, and services from the United States.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out fossil energy research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle--
        (1) $611,000,000 for fiscal year 2007;
        (2) $626,000,000 for fiscal year 2008; and
        (3) $641,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
        (1) For activities under section 962--
            (A) $367,000,000 for fiscal year 2007;
            (B) $376,000,000 for fiscal year 2008; and
            (C) $394,000,000 for fiscal year 2009.
        (2) For activities under section 964--
            (A) $20,000,000 for fiscal year 2007;
            (B) $25,000,000 for fiscal year 2008; and
            (C) $30,000,000 for fiscal year 2009.
        (3) For activities under section 966--
            (A) $1,500,000 for fiscal year 2007; and
            (B) $450,000 for each of fiscal years 2008 and 2009.
        (4) For the Office of Arctic Energy under section 3197 of the 
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 
    2001 (42 U.S.C. 7144d) $25,000,000 for each of fiscal years 2007 
    through 2009.
    (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
established under section 3197 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (42 U.S.C. 7144d) $25,000,000 
for each of fiscal years 2010 through 2012.
    (e) Limitations.--
        (1) Uses.--None of the funds authorized under this section may 
    be used for Fossil Energy Environmental Restoration or Import/
    Export Authorization.
        (2) Institutions of higher education.--Of the funds authorized 
    under subsection (c)(2), not less than 20 percent of the funds 
    appropriated for each fiscal year shall be dedicated to research 
    and development carried out at institutions of higher education.

SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.

    (a) In General.--In addition to the programs authorized under title 
IV, the Secretary shall conduct a program of technology research, 
development, demonstration, and commercial application for coal and 
power systems, including programs to facilitate production and 
generation of coal-based power through--
        (1) innovations for existing plants (including mercury 
    removal);
        (2) gasification systems;
        (3) advanced combustion systems;
        (4) turbines for synthesis gas derived from coal;
        (5) carbon capture and sequestration research and development;
        (6) coal-derived chemicals and transportation fuels;
        (7) liquid fuels derived from low rank coal water slurry;
        (8) solid fuels and feedstocks;
        (9) advanced coal-related research;
        (10) advanced separation technologies; and
        (11) fuel cells for the operation of synthesis gas derived from 
    coal.
    (b) Cost and Performance Goals.--
        (1) In general.--In carrying out programs authorized by this 
    section, during each of calendar years 2008, 2010, 2012, and 2016, 
    and during each fiscal year beginning after September 30, 2021, the 
    Secretary shall identify cost and performance goals for coal-based 
    technologies that would permit the continued cost-competitive use 
    of coal for the production of electricity, chemical feedstocks, and 
    transportation fuels.
        (2) Administration.--In establishing the cost and performance 
    goals, the Secretary shall--
            (A) consider activities and studies undertaken as of the 
        date of enactment of this Act by industry in cooperation with 
        the Department in support of the identification of the goals;
            (B) consult with interested entities, including--
                (i) coal producers;
                (ii) industries using coal;
                (iii) organizations that promote coal and advanced coal 
            technologies;
                (iv) environmental organizations;
                (v) organizations representing workers; and
                (vi) organizations representing consumers;
            (C) not later than 120 days after the date of enactment of 
        this Act, publish in the Federal Register proposed draft cost 
        and performance goals for public comments; and
            (D) not later than 180 days after the date of enactment of 
        this Act and every 4 years thereafter, submit to Congress a 
        report describing the final cost and performance goals for the 
        technologies that includes--
                (i) a list of technical milestones; and
                (ii) an explanation of how programs authorized in this 
            section will not duplicate the activities authorized under 
            the Clean Coal Power Initiative authorized under title IV.
    (c) Powder River Basin and Fort Union Lignite Coal Mercury 
Removal.--
        (1) In general.--In addition to the programs authorized by 
    subsection (a), the Secretary shall establish a program to test and 
    develop technologies to control and remove mercury emissions from 
    subbituminous coal mined in the Powder River Basin, and Fort Union 
    lignite coals, that are used for the generation of electricity.
        (2) Efficacy of mercury removal technology.--In carrying out 
    the program under paragraph (1), the Secretary shall examine the 
    efficacy of mercury removal technologies on coals described in that 
    paragraph that are blended with other types of coal.
    (d) Fuel Cells.--
        (1) In general.--The Secretary shall conduct a program of 
    research, development, demonstration, and commercial application on 
    fuel cells for low-cost, high-efficiency, fuel-flexible, modular 
    power systems.
        (2) Demonstrations.--The demonstrations referred to in 
    paragraph (1) shall include solid oxide fuel cell technology for 
    commercial, residential, and transportation applications, and 
    distributed generation systems, using improved manufacturing 
    production and processes.

SEC. 963. CARBON CAPTURE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a 10-year carbon 
capture research and development program to develop carbon dioxide 
capture technologies on combustion-based systems for use--
        (1) in new coal utilization facilities; and
        (2) on the fleet of coal-based units in existence on the date 
    of enactment of this Act.
    (b) Objectives.--The objectives of the program under subsection (a) 
shall be--
        (1) to develop carbon dioxide capture technologies, including 
    adsorption and absorption techniques and chemical processes, to 
    remove the carbon dioxide from gas streams containing carbon 
    dioxide potentially amenable to sequestration;
        (2) to develop technologies that would directly produce 
    concentrated streams of carbon dioxide potentially amenable to 
    sequestration;
        (3) to increase the efficiency of the overall system to reduce 
    the quantity of carbon dioxide emissions released from the system 
    per megawatt generated; and
        (4) in accordance with the carbon dioxide capture program, to 
    promote a robust carbon sequestration program and continue the work 
    of the Department, in conjunction with the private sector, through 
    regional carbon sequestration partnerships.
    (c) Authorization of Appropriations.--From amounts authorized under 
section 961(b), the following sums are authorized for activities 
described in subsection (a)(2):
        (1) $25,000,000 for fiscal year 2006;
        (2) $30,000,000 for fiscal year 2007; and
        (3) $35,000,000 for fiscal year 2008.

SEC. 964. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary shall carry out a program for 
research and development on coal mining technologies.
    (b) Cooperation.--In carrying out the program, the Secretary shall 
cooperate with appropriate Federal agencies, coal producers, trade 
associations, equipment manufacturers, institutions of higher education 
with mining engineering departments, and other relevant entities.
    (c) Program.--The research and development activities carried out 
under this section shall--
        (1) be guided by the mining research and development priorities 
    identified by the Mining Industry of the Future Program and in the 
    recommendations from relevant reports of the National Academy of 
    Sciences on mining technologies;
        (2) include activities exploring minimization of contaminants 
    in mined coal that contribute to environmental concerns including 
    development and demonstration of electromagnetic wave imaging ahead 
    of mining operations;
        (3) develop and demonstrate coal bed electromagnetic wave 
    imaging, spectroscopic reservoir analysis technology, and 
    techniques for horizontal drilling in order to--
            (A) identify areas of high coal gas content;
            (B) increase methane recovery efficiency;
            (C) prevent spoilage of domestic coal reserves; and
            (D) minimize water disposal associated with methane 
        extraction; and
        (4) expand mining research capabilities at institutions of 
    higher education.

SEC. 965. OIL AND GAS RESEARCH PROGRAMS.

    (a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of oil and gas, 
including--
        (1) exploration and production;
        (2) gas hydrates;
        (3) reservoir life and extension;
        (4) transportation and distribution infrastructure;
        (5) ultraclean fuels;
        (6) heavy oil, oil shale, and tar sands; and
        (7) related environmental research.
    (b) Objectives.--The objectives of this program shall include 
advancing 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.
    (c) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of enactment of this Act and every 2 years thereafter, 
the Secretary of the Interior, in consultation with other appropriate 
Federal agencies, shall submit to Congress a report on the latest 
estimates of natural gas and oil reserves, reserves growth, and 
undiscovered resources in Federal and State waters off the coast of 
Louisiana, Texas, Alabama, and Mississippi.
    (d) Integrated Clean Power and Energy Research.--
        (1) Establishment of center.--The Secretary shall establish a 
    national center or consortium of excellence in clean energy and 
    power generation, using the resources of the Clean Power and Energy 
    Research Consortium in existence on the date of enactment of this 
    Act, to address the critical dependence of the United States on 
    energy and the need to reduce emissions.
        (2) Focus areas.--The center or consortium shall conduct a 
    program of research, development, demonstration, and commercial 
    application on integrating the following 6 focus areas:
            (A) Efficiency and reliability of gas turbines for power 
        generation.
            (B) Reduction in emissions from power generation.
            (C) Promotion of energy conservation issues.
            (D) Effectively using alternative fuels and renewable 
        energy.
            (E) Development of advanced materials technology for oil 
        and gas exploration and use in harsh environments.
            (F) Education on energy and power generation issues.

SEC. 966. LOW-VOLUME OIL AND GAS RESERVOIR RESEARCH PROGRAM.

    (a) Definition of GIS.--In this section, the term ``GIS'' means 
geographic information systems technology that facilitates the 
organization and management of data with a geographic component.
    (b) Program.--The Secretary shall establish a program of research, 
development, demonstration, and commercial application to maximize the 
productive capacity of marginal wells and reservoirs.
    (c) Data Collection.--Under the program, the Secretary shall 
collect data on--
        (1) the status and location of marginal wells and oil and gas 
    reservoirs;
        (2) the production capacity of marginal wells and oil and gas 
    reservoirs;
        (3) the location of low-pressure gathering facilities and 
    pipelines; and
        (4) the quantity of natural gas vented or flared in association 
    with crude oil production.
    (d) Analysis.--Under the program, the Secretary shall--
        (1) estimate the remaining producible reserves based on 
    variable pipeline pressures; and
        (2) recommend measures that will enable the continued 
    production of those resources.
    (e) Study.--
        (1) In general.--The Secretary may award a grant to an 
    organization of States that contain significant numbers of marginal 
    oil and natural gas wells to conduct an annual study of low-volume 
    natural gas reservoirs.
        (2) Organization with no gis capabilities.--If an organization 
    receiving a grant under paragraph (1) does not have GIS 
    capabilities, the organization shall contract with an institution 
    of higher education with GIS capabilities.
        (3) State geologists.--The organization receiving a grant under 
    paragraph (1) shall collaborate with the State geologist of each 
    State being studied.
    (f) Public Information.--The Secretary may use the data collected 
and analyzed under this section to produce maps and literature to 
disseminate to States to promote conservation of natural gas reserves.

SEC. 967. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

    The Secretary, in coordination with industry leaders in extended 
research drilling technology, shall establish a Complex Well Technology 
Testing Facility at the Rocky Mountain Oilfield Testing Center to 
increase the range of extended drilling technologies.

SEC. 968. METHANE HYDRATE RESEARCH.

    (a) In General.--The Methane Hydrate Research and Development Act 
of 2000 (30 U.S.C. 1902 note; Public Law 106-193) is amended to read as 
follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Methane Hydrate Research and 
Development Act of 2000'.

``SEC. 2. FINDINGS.

    ``Congress finds that--
        ``(1) in order to promote energy independence and meet the 
    increasing demand for energy, the United States will require a 
    diversified portfolio of substantially increased quantities of 
    electricity, natural gas, and transportation fuels;
        ``(2) according to the report submitted to Congress by the 
    National Research Council entitled `Charting the Future of Methane 
    Hydrate Research in the United States', the total United States 
    resources of gas hydrates have been estimated to be on the order of 
    200,000 trillion cubic feet;
        ``(3) according to the report of the National Commission on 
    Energy Policy entitled `Ending the Energy Stalemate--A Bipartisan 
    Strategy to Meet America's Energy Challenge', and dated December 
    2004, the United States may be endowed with over one-fourth of the 
    methane hydrate deposits in the world;
        ``(4) according to the Energy Information Administration, a 
    shortfall in natural gas supply from conventional and 
    unconventional sources is expected to occur in or about 2020; and
        ``(5) the National Academy of Sciences states that methane 
    hydrate may have the potential to alleviate the projected shortfall 
    in the natural gas supply.

``SEC. 3. DEFINITIONS.

    ``In this Act:
        ``(1) Contract.--The term `contract' means a procurement 
    contract within the meaning of section 6303 of title 31, United 
    States Code.
        ``(2) Cooperative agreement.--The term `cooperative agreement' 
    means a cooperative agreement within the meaning of section 6305 of 
    title 31, United States Code.
        ``(3) Director.--The term `Director' means the Director of the 
    National Science Foundation.
        ``(4) Grant.--The term `grant' means a grant awarded under a 
    grant agreement (within the meaning of section 6304 of title 31, 
    United States Code).
        ``(5) Industrial enterprise.--The term `industrial enterprise' 
    means a private, nongovernmental enterprise that has an expertise 
    or capability that relates to methane hydrate research and 
    development.
        ``(6) Institution of higher education.--The term `institution 
    of higher education' means an institution of higher education (as 
    defined in section 102 of the Higher Education Act of 1965 (20 
    U.S.C. 1002)).
        ``(7) Secretary.--The term `Secretary' means the Secretary of 
    Energy, acting through the Assistant Secretary for Fossil Energy.
        ``(8) Secretary of commerce.--The term `Secretary of Commerce' 
    means the Secretary of Commerce, acting through the Administrator 
    of the National Oceanic and Atmospheric Administration.
        ``(9) Secretary of defense.--The term `Secretary of Defense' 
    means the Secretary of Defense, acting through the Secretary of the 
    Navy.
        ``(10) Secretary of the interior.--The term `Secretary of the 
    Interior' means the Secretary of the Interior, acting through the 
    Director of the United States Geological Survey, the Director of 
    the Bureau of Land Management, and the Director of the Minerals 
    Management Service.

``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

    ``(a) In General.--
        ``(1) Commencement of program.--Not later than 90 days after 
    the date of enactment of the Energy Research, Development, 
    Demonstration, and Commercial Application Act of 2005, the 
    Secretary, in consultation with the Secretary of Commerce, the 
    Secretary of Defense, the Secretary of the Interior, and the 
    Director, shall commence a program of methane hydrate research and 
    development in accordance with this section.
        ``(2) Designations.--The Secretary, the Secretary of Commerce, 
    the Secretary of Defense, the Secretary of the Interior, and the 
    Director shall designate individuals to carry out this section.
        ``(3) Coordination.--The individual designated by the Secretary 
    shall coordinate all activities within the Department of Energy 
    relating to methane hydrate research and development.
        ``(4) Meetings.--The individuals designated under paragraph (2) 
    shall meet not later than 180 days after the date of enactment of 
    the Energy Research, Development, Demonstration, and Commercial 
    Application Act of 2005 and not less frequently than every 180 days 
    thereafter to--
            ``(A) review the progress of the program under paragraph 
        (1); and
            ``(B) coordinate interagency research and partnership 
        efforts in carrying out the program.
    ``(b) Grants, Contracts, Cooperative Agreements, Interagency Funds 
Transfer Agreements, and Field Work Proposals.--
        ``(1) Assistance and coordination.--In carrying out the program 
    of methane hydrate research and development authorized by this 
    section, the Secretary may award grants to, or enter into contracts 
    or cooperative agreements with, institutions of higher education, 
    oceanographic institutions, and industrial enterprises to--
            ``(A) conduct basic and applied research to identify, 
        explore, assess, and develop methane hydrate as a commercially 
        viable source of energy;
            ``(B) identify methane hydrate resources through remote 
        sensing;
            ``(C) acquire and reprocess seismic data suitable for 
        characterizing methane hydrate accumulations;
            ``(D) assist in developing technologies required for 
        efficient and environmentally sound development of methane 
        hydrate resources;
            ``(E) promote education and training in methane hydrate 
        resource research and resource development through fellowships 
        or other means for graduate education and training;
            ``(F) conduct basic and applied research to assess and 
        mitigate the environmental impact of hydrate degassing 
        (including both natural degassing and degassing associated with 
        commercial development);
            ``(G) develop technologies to reduce the risks of drilling 
        through methane hydrates; and
            ``(H) conduct exploratory drilling, well testing, and 
        production testing operations on permafrost and non-permafrost 
        gas hydrates in support of the activities authorized by this 
        paragraph, including drilling of one or more full-scale 
        production test wells.
        ``(2) Competitive peer review.--Funds made available under 
    paragraph (1) shall be made available based on a competitive 
    process using external scientific peer review of proposed research.
    ``(c) Methane Hydrates Advisory Panel.--
        ``(1) In general.--The Secretary shall establish an advisory 
    panel (including the hiring of appropriate staff) consisting of 
    representatives of industrial enterprises, institutions of higher 
    education, oceanographic institutions, State agencies, and 
    environmental organizations with knowledge and expertise in the 
    natural gas hydrates field, to--
            ``(A) assist in developing recommendations and broad 
        programmatic priorities for the methane hydrate research and 
        development program carried out under subsection (a)(1);
            ``(B) provide scientific oversight for the methane hydrates 
        program, including assessing progress toward program goals, 
        evaluating program balance, and providing recommendations to 
        enhance the quality of the program over time; and
            ``(C) not later than 2 years after the date of enactment of 
        the Energy Research, Development, Demonstration, and Commercial 
        Application Act of 2005, and at such later dates as the panel 
        considers advisable, submit to Congress--
                ``(i) an assessment of the methane hydrate research 
            program; and
                ``(ii) an assessment of the 5-year research plan of the 
            Department of Energy.
        ``(2) Conflicts of interest.--In appointing each member of the 
    advisory panel established under paragraph (1), the Secretary shall 
    ensure, to the maximum extent practicable, that the appointment of 
    the member does not pose a conflict of interest with respect to the 
    duties of the member under this Act.
        ``(3) Meetings.--The advisory panel shall--
            ``(A) hold the initial meeting of the advisory panel not 
        later than 180 days after the date of establishment of the 
        advisory panel; and
            ``(B) meet biennially thereafter.
        ``(4) Coordination.--The advisory panel shall coordinate 
    activities of the advisory panel with program managers of the 
    Department of Energy at appropriate National Laboratories.
    ``(d) Construction Costs.--None of the funds made available to 
carry out this section may be used for the construction of a new 
building or the acquisition, expansion, remodeling, or alteration of an 
existing building (including site grading and improvement and architect 
fees).
    ``(e) Responsibilities of the Secretary.--In carrying out 
subsection (b)(1), the Secretary shall--
        ``(1) facilitate and develop partnerships among government, 
    industrial enterprises, and institutions of higher education to 
    research, identify, assess, and explore methane hydrate resources;
        ``(2) undertake programs to develop basic information necessary 
    for promoting long-term interest in methane hydrate resources as an 
    energy source;
        ``(3) ensure that the data and information developed through 
    the program are accessible and widely disseminated as needed and 
    appropriate;
        ``(4) promote cooperation among agencies that are developing 
    technologies that may hold promise for methane hydrate resource 
    development;
        ``(5) report annually to Congress on the results of actions 
    taken to carry out this Act; and
        ``(6) ensure, to the maximum extent practicable, greater 
    participation by the Department of Energy in international 
    cooperative efforts.

``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

    ``(a) Agreement for Study.--The Secretary shall offer to enter into 
an agreement with the National Research Council under which the 
National Research Council shall--
        ``(1) conduct a study of the progress made under the methane 
    hydrate research and development program implemented under this 
    Act; and
        ``(2) make recommendations for future methane hydrate research 
    and development needs.
    ``(b) Report.--Not later than September 30, 2009, the Secretary 
shall submit to Congress a report containing the findings and 
recommendations of the National Research Council under this section.

``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.

    ``The Secretary shall provide to the Committee on Science of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate copies of any report or study that the 
Department of Energy prepares at the direction of any committee of 
Congress relating to the methane hydrate research and development 
program implemented under this Act.

``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this Act, to remain available until expended--
        ``(1) $15,000,000 for fiscal year 2006;
        ``(2) $20,000,000 for fiscal year 2007;
        ``(3) $30,000,000 for fiscal year 2008;
        ``(4) $40,000,000 for fiscal year 2009; and
        ``(5) $50,000,000 for fiscal year 2010.''.
    (b) Reclassification.--The Law Revision Counsel shall reclassify 
the Methane Hydrate Research and Development Act of 2000 (30 U.S.C. 
1902 note; Public Law 106-193) to a new chapter at the end of title 30, 
United States Code.

                          Subtitle G--Science

SEC. 971. SCIENCE.

    (a) In General.--The Secretary shall conduct, through the Office of 
Science, programs of research, development, demonstration, and 
commercial application in high energy physics, nuclear physics, 
biological and environmental research, basic energy sciences, advanced 
scientific computing research, and fusion energy sciences, including 
activities described in this subtitle. The programs shall include 
support for facilities and infrastructure, education, outreach, 
information, analysis, and coordination activities.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out research, development, 
demonstration, and commercial application activities of the Office of 
Science, including activities authorized under this subtitle (including 
the amounts authorized under the amendment made by section 976(b) and 
including basic energy sciences, advanced scientific and computing 
research, biological and environmental research, fusion energy 
sciences, high energy physics, nuclear physics, research analysis, and 
infrastructure support)--
        (1) $4,153,000,000 for fiscal year 2007;
        (2) $4,586,000,000 for fiscal year 2008; and
        (3) $5,200,000,000 for fiscal year 2009.
    (c) Allocations.--From amounts authorized under subsection (b), the 
following sums are authorized:
        (1) For activities under the Fusion Energy Sciences program 
    (including activities under section 972)--
            (A) $355,500,000 for fiscal year 2007;
            (B) $369,500,000 for fiscal year 2008;
            (C) $384,800,000 for fiscal year 2009; and
            (D) in addition to the amounts authorized under 
        subparagraphs (A), (B), and (C), such sums as may be necessary 
        for ITER construction, consistent with the limitations of 
        section 972(c)(5).
        (2) For activities under the catalysis research program under 
    section 973--
            (A) $36,500,000 for fiscal year 2007;
            (B) $38,200,000 for fiscal year 2008; and
            (C) such sums as may be necessary for fiscal year 2009.
        (3) For activities under the Systems Biology Program under 
    section 977 such sums as may be necessary for each of fiscal years 
    2007 through 2009.
        (4) For activities under the Energy and Water Supplies program 
    under section 979, $30,000,000 for each of fiscal years 2007 
    through 2009.
        (5) For the energy research fellowships programs under section 
    984, $40,000,000 for each of fiscal years 2007 through 2009.
        (6) For the advanced scientific computing activities under 
    section 976--
            (A) $270,000,000 for fiscal year 2007;
            (B) $350,000,000 for fiscal year 2008; and
            (C) $375,000,000 for fiscal year 2009.
        (7) For the science and engineering education pilot program 
    under section 983--
            (A) $4,000,000 for each of fiscal years 2007 and 2008; and
            (B) $8,000,000 for fiscal year 2009.
    (d) Integrated Bioenergy Research and Development.--In addition to 
amounts otherwise authorized by this section, there are authorized to 
be appropriated to the Secretary for integrated bioenergy research and 
development programs, projects, and activities, $49,000,000 for each of 
the fiscal years 2005 through 2009. Activities funded under this 
subsection shall be coordinated with ongoing related programs of other 
Federal agencies, including the Plant Genome Program of the National 
Science Foundation. Of the funds authorized under this subsection, at 
least $5,000,000 for each fiscal year shall be for training and 
education targeted to minority and socially disadvantaged farmers and 
ranchers.

SEC. 972. FUSION ENERGY SCIENCES PROGRAM.

    (a) Declaration of Policy.--It shall be the policy of the United 
States to conduct research, development, demonstration, and commercial 
applications to provide for the scientific, engineering, and commercial 
infrastructure necessary to ensure that the United States is 
competitive with other countries in providing fusion energy for its own 
needs and the needs of other countries, including by demonstrating 
electric power or hydrogen production for the United States energy grid 
using fusion energy at the earliest date.
    (b) Planning.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary shall submit 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) in a manner that ensures that--
            (A) existing fusion research facilities are more fully 
        used;
            (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 and cost effectiveness, and the potential of the 
        facilities to advance the goal of practical fusion energy at 
        the earliest date practicable;
            (D) facilities that are selected are funded at a cost-
        effective rate;
            (E) communication of scientific results and methods between 
        the fusion energy science community and the broader scientific 
        and technology communities is improved;
            (F) inertial confinement fusion facilities are used to the 
        extent practicable for the purpose of inertial fusion energy 
        research and development;
            (G) attractive alternative inertial and magnetic fusion 
        energy approaches are more fully explored; and
            (H) to the extent practicable, the recommendations of the 
        Fusion Energy Sciences Advisory Committee in the report on 
        workforce planning, dated March 2004, are carried out, 
        including periodic reassessment of program needs.
        (2) Costs and schedules.--The plan shall also address the 
    status of and, to the extent practicable, 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) Definitions.--In this subsection:
            (A) Construction.--
                (i) In general.--The term ``construction'' means--

                    (I) the physical construction of the ITER facility; 
                and
                    (II) the physical construction, purchase, or 
                manufacture of equipment or components that are 
                specifically designed for the ITER facility.

                (ii) Exclusions.--The term ``construction'' does not 
            include 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.
        (2) Participation.--The United States may participate in the 
    ITER only in accordance with this subsection.
        (3) Agreement.--
            (A) In general.--The Secretary may negotiate an agreement 
        for United States participation in the ITER.
            (B) Contents.--Any agreement for United States 
        participation in the 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 a project;
                (ii) ensure that the share of high-technology 
            components of the ITER manufactured in the United States is 
            at least proportionate to the United States financial 
            contribution to the 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 the ITER;
                (v) enable United States researchers to propose and 
            carry out an equitable share of the experiments at the 
            ITER;
                (vi) provide the United States with a role in all 
            collective decisionmaking related to the ITER; and
                (vii) describe the process for discontinuing or 
            decommissioning the ITER and any United States role in that 
            process.
        (4) Plan.--
            (A) Development.--The Secretary, in consultation with the 
        Fusion Energy Sciences Advisory Committee, shall develop a plan 
        for the participation of United States scientists in the ITER 
        that shall include--
                (i) the United States research agenda for the ITER;
                (ii) methods to evaluate whether the ITER is promoting 
            progress toward making fusion a reliable and affordable 
            source of power; and
                (iii) a description of how work at the ITER will relate 
            to other elements of the United States fusion program.
            (B) Review.--The Secretary shall request a review of the 
        plan by the National Academy of Sciences.
        (5) Limitation.--No Federal funds shall be expended for the 
    construction of the ITER until the Secretary has submitted to 
    Congress--
            (A) the agreement negotiated in accordance with paragraph 
        (3) and 120 days have elapsed since that submission;
            (B) a report describing the management structure of the 
        ITER and providing a fixed dollar estimate of the cost of 
        United States participation in the construction of the ITER, 
        and 120 days have elapsed since that submission;
            (C) a report describing how United States participation in 
        the 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 submission; and
            (D) the plan required by paragraph (4) (but not the 
        National Academy of Sciences review of that plan), and 60 days 
        have elapsed since that submission.
        (6) Alternative to iter.--
            (A) In general.--If at any time during the negotiations on 
        the ITER, the Secretary determines that construction and 
        operation of the ITER is unlikely or infeasible, the Secretary 
        shall submit to Congress, along with the budget request of the 
        President submitted to Congress for the following fiscal year, 
        a plan for implementing a domestic burning plasma experiment 
        such as the Fusion Ignition Research Experiment, including 
        costs and schedules for the plan.
            (B) Administration.--The Secretary shall--
                (i) refine the plan in full consultation with the 
            Fusion Energy Sciences Advisory Committee; and
                (ii) transmit the plan to the National Academy of 
            Sciences for review.

SEC. 973. CATALYSIS RESEARCH PROGRAM.

    (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program of research and development in 
catalysis science consistent with the statutory authorities of the 
Department related to research and development.
    (b) Components.--The program shall include efforts to--
        (1) enable catalyst design using combinations of experimental 
    and mechanistic methodologies coupled with computational modeling 
    of catalytic reactions at the molecular level;
        (2) develop techniques for high throughput synthesis, assay, 
    and characterization at nanometer and subnanometer scales in-situ 
    under actual operating conditions;
        (3) synthesize catalysts with specific site architectures;
        (4) conduct research on the use of precious metals for 
    catalysis; and
        (5) translate molecular understanding to the design of 
    catalytic compounds.
    (c) Duties of the Office of Science.--In carrying out the program, 
the Director of the Office of Science shall--
        (1) support both individual investigators and multidisciplinary 
    teams of investigators to pioneer new approaches in catalytic 
    design;
        (2) develop, plan, construct, acquire, share, or operate 
    special equipment or facilities for the use of investigators in 
    collaboration with national user facilities, such as nanoscience 
    and engineering centers;
        (3) support technology transfer activities to benefit industry 
    and other users of catalysis science and engineering; and
        (4) coordinate research and development activities with 
    industry and other Federal agencies.
    (d) Assessment.--Not later than 3 years after the date of enactment 
of this Act, the Secretary shall enter into an arrangement with the 
National Academy of Sciences to--
        (1) review the catalysis program to measure--
            (A) gains made in the fundamental science of catalysis; and
            (B) progress towards developing new fuels for energy 
        production and material fabrication processes; and
        (2) submit to Congress a report describing the results of the 
    review.

SEC. 974. HYDROGEN.

    (a) In General.--The Secretary shall conduct a program of 
fundamental research and development in support of programs authorized 
under title VIII.
    (b) Methods.--The program shall include support for methods of 
generating hydrogen without the use of natural gas.

SEC. 975. SOLID STATE LIGHTING.

    The Secretary shall conduct a program of fundamental research on 
solid state lighting in support of the Next Generation Lighting 
Initiative carried out under section 912.

SEC. 976. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) Program.--
        (1) In general.--The Secretary shall conduct an advanced 
    scientific computing research and development program that includes 
    activities related to applied mathematics and activities authorized 
    by the Department of Energy High-End Computing Revitalization Act 
    of 2004 (15 U.S.C. 5541 et seq.).
        (2) Goal.--The Secretary shall carry out the program with the 
    goal of supporting departmental missions, and providing the high-
    performance computational, networking, advanced visualization 
    technologies, and workforce resources, that are required for world 
    leadership in science.
    (b) High-Performance Computing.--Section 203 of the High-
Performance Computing Act of 1991 (15 U.S.C. 5523) is amended to read 
as follows:

``SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

    ``(a) General Responsibilities.--As part of the Program described 
in title I, the Secretary of Energy shall--
        ``(1) conduct and support basic and applied research in high-
    performance computing and networking to support fundamental 
    research in science and engineering disciplines related to energy 
    applications; and
        ``(2) provide computing and networking infrastructure support, 
    including--
            ``(A) the provision of high-performance computing systems 
        that are among the most advanced in the world in terms of 
        performance in solving scientific and engineering problems; and
            ``(B) support for advanced software and applications 
        development for science and engineering disciplines related to 
        energy applications.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as are necessary to 
carry out this section.''.

SEC. 977. SYSTEMS BIOLOGY PROGRAM.

    (a) Program.--
        (1) Establishment.--The Secretary shall establish a research, 
    development, and demonstration program in microbial and plant 
    systems biology, 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 facilities of the 
    Department, 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 subtitle, amounts shall 
be available for projects to develop, plan, construct, acquire, or 
operate special equipment, instrumentation, or facilities, including 
user facilities at National Laboratories, 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. 978. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

    (a) In General.--Along with the budget request of the President 
submitted to Congress for fiscal year 2007, the Secretary shall 
establish a research and development program on material science issues 
presented by advanced fission reactors and the fusion energy program of 
the Department.
    (b) Administration.--In carrying out the program, the Secretary 
shall develop--
        (1) a catalog of material properties required for applications 
    described in subsection (a);
        (2) theoretical models for materials possessing the required 
    properties;
        (3) benchmark models against existing data; and
        (4) a roadmap to guide further research and development in the 
    area covered by the program.

SEC. 979. ENERGY AND WATER SUPPLIES.

    (a) In General.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application to--
        (1) address energy-related issues associated with provision of 
    adequate water supplies, optimal management, and efficient use of 
    water;
        (2) address water-related issues associated with the provision 
    of adequate supplies, optimal management, and efficient use of 
    energy; and
        (3) assess the effectiveness of existing programs within the 
    Department and other Federal agencies to address these energy and 
    water related issues.
    (b) Program Elements.--The program under this section shall 
include--
        (1) arsenic treatment;
        (2) desalination; and
        (3) planning, analysis, and modeling of energy and water supply 
    and demand.
    (c) Collaboration.--In carrying out this section, the Secretary 
shall consult with the Administrator of the Environmental Protection 
Agency, the Secretary of the Interior, the Chief Engineer of the Army 
Corps of Engineers, the Secretary of Commerce, the Secretary of 
Defense, and other Federal agencies as appropriate.
    (d) Facilities.--The Secretary may utilize all existing facilities 
within the Department and may design and construct additional 
facilities as needed to carry out the purposes of this program.
    (e) Advisory Committee.--The Secretary shall establish or utilize 
an advisory committee to provide independent advice and review of the 
program.
    (f) Reports.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the 
assessment described in subsection (b) and recommendations for future 
actions.

SEC. 980. SPALLATION NEUTRON SOURCE.

    (a) Definitions.--In this section:
        (1) SING.--The term ``SING'' means the Spallation Neutron 
    Source Instruments Next Generation major item of equipment.
        (2) SNS power upgrade.--The term ``SNS power upgrade'' means 
    the Spallation Neutron Source power upgrade described in the 20-
    year facilities plan of the Office of Science of the Department.
        (3) SNS second target station.--The term ``SNS second target 
    station'' means the Spallation Neutron Source second target station 
    described in the 20-year facilities plan of the Office of Science 
    of the Department.
        (4) Spallation neutron source facility.--The terms ``Spallation 
    Neutron Source Facility'' and ``Facility'' mean the completed 
    Spallation Neutron Source scientific user facility located at Oak 
    Ridge National Laboratory, Oak Ridge, Tennessee.
        (5) Spallation neutron source project.--The terms ``Spallation 
    Neutron Source Project'' and ``Project'' means Department Project 
    99-E-334, Oak Ridge National Laboratory, Oak Ridge, Tennessee.
    (b) Spallation Neutron Source Project.--
        (1) In general.--The Secretary shall submit to Congress, as 
    part of the annual budget request of the President submitted to 
    Congress, a report on progress on the Spallation Neutron Source 
    Project.
        (2) Contents.--The report shall include for the Project--
            (A) a description of the achievement of milestones;
            (B) a comparison of actual costs to estimated costs; and
            (C) any changes in estimated Project costs or schedule.
    (c) Spallation Neutron Source Facility Plan.--
        (1) In general.--The Secretary shall develop an operational 
    plan for the Spallation Neutron Source Facility that ensures that 
    the Facility is employed to the full capability of the Facility in 
    support of the study of advanced materials, nanoscience, and other 
    missions of the Office of Science of the Department.
        (2) Plan.--The operational plan shall--
            (A) include a plan for the operation of an effective 
        scientific user program that--
                (i) is based on peer review of proposals submitted for 
            use of the Facility;
                (ii) includes scientific and technical support to 
            ensure that external users, including researchers based at 
            institutions of higher education, are able to make full use 
            of a variety of high quality scientific instruments; and
                (iii) phases in systems upgrades to ensure that the 
            Facility remains at the forefront of international 
            scientific endeavors in the field of the Facility 
            throughout the operating life of the Facility;
            (B) include an ongoing program to develop new instruments 
        that builds on the high performance neutron source and that 
        allows neutron scattering techniques to be applied to a growing 
        range of scientific problems and disciplines; and
            (C) address the status of and, to the maximum extent 
        practicable, costs and schedules for--
                (i) full user mode operations of the Facility;
                (ii) instrumentation built at the Facility during the 
            operating phase through full use of the experimental hall, 
            including the SING;
                (iii) the SNS power upgrade; and
                (iv) the SNS second target station.
    (d) Authorization of Appropriations.--
        (1) Spallation neutron source project.--There is authorized to 
    be appropriated to carry out the Spallation Neutron Source Project 
    for the lifetime of the Project $1,411,700,000 for total project 
    costs, of which--
            (A) $1,192,700,000 shall be used for the costs of 
        construction; and
            (B) $219,000,000 shall be used for other Project costs.
        (2) Spallation neutron source facility.--
            (A) In general.--Except as provided in subparagraph (B), 
        there is authorized to be appropriated for the Spallation 
        Neutron Source Facility for--
                (i) the SING, $75,000,000 for each of fiscal year 2007 
            through 2009; and
                (ii) the SNS power upgrade, $160,000,000, to remain 
            available until expended.
            (B) Insufficient stockpiles of heavy water.--If stockpiles 
        of heavy water of the Department are insufficient to meet the 
        needs of the Facility, there is authorized to be appropriated 
        for the Facility $12,000,000 for fiscal year 2007.

SEC. 981. RARE ISOTOPE ACCELERATOR.

    (a) Establishment.--The Secretary shall construct and operate a 
Rare Isotope Accelerator. The Secretary shall commence construction no 
later than September 30, 2008.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section. The Secretary shall not spend more than 
$1,100,000,000 in Federal funds for all activities associated with the 
Rare Isotope Accelerator, prior to operation of the Accelerator.

SEC. 982. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.

    The Secretary, through the Office of Scientific and Technical 
Information, shall maintain within the Department publicly available 
collections of scientific and technical information resulting from 
research, development, demonstration, and commercial applications 
activities supported by the Department.

SEC. 983. SCIENCE AND ENGINEERING EDUCATION PILOT PROGRAM.

    (a) Establishment of Pilot Program.--The Secretary shall award a 
grant to a Southeastern United States consortium of major research 
universities that currently advances science and education by 
partnering with National Laboratories, to establish a regional pilot 
program of its SEEK-16 program for enhancing scientific, technological, 
engineering, and mathematical literacy, creativity, and decision-
making. The consortium shall include leading research universities, one 
or more universities that train substantial numbers of elementary and 
secondary school teachers, and (where appropriate) National 
Laboratories.
    (b) Program Elements.--The regional pilot program shall include--
        (1) expanding strategic, formal partnerships among universities 
    with strength in research, universities that train substantial 
    numbers of elementary and secondary school teachers, and the 
    private sector;
        (2) combining Department expertise with one or more National 
    Aeronautics and Space Administration Educator Resource Centers;
        (3) developing programs to permit current and future teachers 
    to participate in ongoing research projects at National 
    Laboratories and research universities and to adapt lessons learned 
    to the classroom;
        (4) designing and implementing course work;
        (5) designing and implementing a strategy for measuring and 
    assessing progress under the program; and
        (6) developing models for transferring knowledge gained under 
    the pilot program to other institutions and areas of the United 
    States.
    (c) Categorization.--A grant under this section shall be considered 
an authorized activity under section 3165 of the Department of Energy 
Science Education Enhancement Act (42 U.S.C. 7381b).
    (d) Report.--No later than 2 years after the award of the grant, 
the Secretary shall transmit to Congress a report outlining lessons 
learned and, if determined appropriate by the Secretary, containing a 
plan for expanding the program throughout the United States.

SEC. 984. ENERGY RESEARCH FELLOWSHIPS.

    (a) Postdoctoral Fellowship Program.--The Secretary shall establish 
a program under which the Secretary provides fellowships to encourage 
outstanding young scientists and engineers to pursue postdoctoral 
research appointments in energy research and development at 
institutions of higher education of their choice.
    (b) Senior Research Fellowships.--
        (1) In general.--The Secretary shall establish a program under 
    which the Secretary provides fellowships to allow outstanding 
    senior researchers and their research groups in energy research and 
    development to explore research and development topics of their 
    choosing for a period of not less than 3 years, to be determined by 
    the Secretary.
        (2) Consideration.--In providing a fellowship under the program 
    described in paragraph (1), the Secretary shall consider--
            (A) the past scientific or technical accomplishment of a 
        senior researcher; and
            (B) the potential for continued accomplishment by the 
        researcher during the period of the fellowship.

SEC. 984A. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a) 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 and National Laboratories.
    (b) Service Requirement.--The Secretary may require that an 
individual receiving a scholarship under this section serve as a full-
time employee of the Department or a National Laboratory for a fixed 
period in return for receiving the scholarship.

                 Subtitle H--International Cooperation

SEC. 985. WESTERN HEMISPHERE ENERGY COOPERATION.

    (a) Program.--The Secretary shall carry out a program to promote 
cooperation on energy issues with countries of the Western Hemisphere.
    (b) Activities.--Under the program, the Secretary shall fund 
activities to work with countries of the Western Hemisphere to--
        (1) increase the production of energy supplies;
        (2) improve energy efficiency; and
        (3) assist in the development and transfer of energy supply and 
    efficiency technologies that would have a beneficial impact on 
    world energy markets.
    (c) Participation by Institutions of Higher Education.--To the 
extent practicable, the Secretary shall carry out the program under 
this section with the participation of institutions of higher education 
so as to take advantage of the acceptance of institutions of higher 
education by countries of the Western Hemisphere as sources of unbiased 
technical and policy expertise when assisting the Secretary in--
        (1) evaluating new technologies;
        (2) resolving technical issues;
        (3) working with those countries in the development of new 
    policies; and
        (4) training policymakers, particularly in the case of 
    institutions of higher education that involve the participation of 
    minority students, such as--
            (A) Hispanic-serving institutions; and
            (B) part B institutions.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
        (1) $10,000,000 for fiscal year 2007;
        (2) $13,000,000 for fiscal year 2008; and
        (3) $16,000,000 for fiscal year 2009.

SEC. 986. COOPERATION BETWEEN UNITED STATES AND ISRAEL.

    (a) Findings.--Congress finds that--
        (1) on February 1, 1996, the United States and Israel signed 
    the agreement entitled ``Agreement between the Department of Energy 
    of the United States of America and the Ministry of Energy and 
    Infrastructure of Israel Concerning Energy Cooperation'' (referred 
    to in this section as the ``Agreement''), to establish a framework 
    for collaboration between the United States and Israel in energy 
    research and development activities;
        (2) the Agreement entered into force in February 2000;
        (3) in February 2005, the Agreement was automatically renewed 
    for 1 additional 5-year period pursuant to Article X of the 
    Agreement; and
        (4) under the Agreement, the United States and Israel may 
    cooperate in energy research and development in a variety of 
    alternative and advanced energy sectors.
    (b) Report to Congress.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Energy and Natural Resources and the Committee on Foreign Relations of 
the Senate and the Committee on Energy and Commerce and the Committee 
on International Relations of the House of Representatives a report 
that describes--
        (1) the ways in which the United States and Israel have 
    cooperated on energy research and development activities under the 
    Agreement;
        (2) projects initiated pursuant to the Agreement; and
        (3) plans for future cooperation and joint projects under the 
    Agreement.
    (c) Sense of Congress.--It is the sense of Congress that energy 
cooperation between the Governments of the United States and Israel is 
mutually beneficial in the development of energy technology.

SEC. 986A. INTERNATIONAL ENERGY TRAINING.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Commerce, the Secretary of the Interior, and Secretary of State, and 
the Federal Energy Regulatory Commission, shall coordinate training and 
outreach efforts for international commercial energy markets in 
countries with developing and restructuring economies.
    (b) Components.--The training and outreach efforts referred to in 
subsection (a) may include--
        (1) production-related fiscal regimes;
        (2) grid and network issues;
        (3) energy user and demand side response;
        (4) international trade of energy; and
        (5) international transportation of energy.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,500,000 for each of fiscal 
years 2007 through 2010.

           Subtitle I--Research Administration and Operations

SEC. 987. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department under this 
Act or an amendment made by this Act shall remain available until 
expended.

SEC. 988. COST SHARING.

    (a) Applicability.--Notwithstanding any other provision of law, in 
carrying out a research, development, demonstration, or commercial 
application program or activity that is initiated after the date of 
enactment of this section, the Secretary shall require cost-sharing in 
accordance with this section.
    (b) Research and Development.--
        (1) In general.--Except as provided in paragraphs (2) and (3) 
    and subsection (f), the Secretary shall require not less than 20 
    percent of the cost of a research or development activity described 
    in subsection (a) to be provided by a non-Federal source.
        (2) Exclusion.--Paragraph (1) shall not apply to a research or 
    development activity described in subsection (a) that is of a basic 
    or fundamental nature, as determined by the appropriate officer of 
    the Department.
        (3) Reduction.--The Secretary may reduce or eliminate the 
    requirement of paragraph (1) for a research and development 
    activity of an applied nature if the Secretary determines that the 
    reduction is necessary and appropriate.
    (c) Demonstration and Commercial Application.--
        (1) In general.--Except as provided in paragraph (2) and 
    subsection (f), the Secretary shall require that not less than 50 
    percent of the cost of a demonstration or commercial application 
    activity described in subsection (a) to be provided by a non-
    Federal source.
        (2) Reduction of non-federal share.--The Secretary may reduce 
    the non-Federal share required under paragraph (1) if the Secretary 
    determines the reduction to be necessary and appropriate, taking 
    into consideration any technological risk relating to the activity.
    (d) Calculation of Amount.--In calculating the amount of a non-
Federal contribution under this section, the Secretary--
        (1) may include allowable costs in accordance with the 
    applicable cost principles, including--
            (A) cash;
            (B) personnel costs;
            (C) the value of a service, other resource, or third party 
        in-kind contribution determined in accordance with the 
        applicable circular of the Office of Management and Budget;
            (D) indirect costs or facilities and administrative costs; 
        or
            (E) any funds received under the power program of the 
        Tennessee Valley Authority (except to the extent that such 
        funds are made available under an annual appropriation Act); 
        and
        (2) shall not include--
            (A) revenues or royalties from the prospective operation of 
        an activity beyond the time considered in the award;
            (B) proceeds from the prospective sale of an asset of an 
        activity; or
            (C) other appropriated Federal funds.
    (e) Repayment of Federal Share.--The Secretary shall not require 
repayment of the Federal share of a cost-shared activity under this 
section as a condition of making an award.
    (f) Exclusions.--This section shall not apply to--
        (1) a cooperative research and development agreement under the 
    Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 
    et seq.);
        (2) a fee charged for the use of a Department facility; or
        (3) an award under--
            (A) the small business innovation research program under 
        section 9 of the Small Business Act (15 U.S.C. 638); or
            (B) the small business technology transfer program under 
        that section.

SEC. 989. MERIT REVIEW OF PROPOSALS.

    (a) Awards.--Awards of funds authorized under this Act or an 
amendment made by this Act shall be made only after an impartial review 
of the scientific and technical merit of the proposals for the awards 
has been carried out by or for the Department.
    (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) Sense of Congress.--It is the sense of Congress that research, 
development, demonstration, and commercial application activities 
carried out by the Department should be awarded using competitive 
procedures, to the maximum extent practicable.

SEC. 990. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--
        (1) Establishment.--The Secretary shall establish one or more 
    advisory boards to review research, development, demonstration, and 
    commercial application programs of the Department in energy 
    efficiency, renewable energy, nuclear energy, and fossil energy.
        (2) Alternatives.--The Secretary may--
            (A) designate an existing advisory board within the 
        Department to fulfill the responsibilities of an advisory board 
        under this section; and
            (B) enter into appropriate arrangements with the National 
        Academy of Sciences to establish such an advisory board.
    (b) Use of Existing Committees.--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.
    (c) Membership.--Each advisory board under this section shall 
consist of persons with appropriate expertise representing a diverse 
range of interests.
    (d) Meetings and Goals.--
        (1) Meetings.--Each advisory board under this section shall 
    meet at least semiannually to review and advise on the progress 
    made by the respective one or more research, development, 
    demonstration, and commercial application programs.
        (2) Goals.--The advisory board shall review the measurable cost 
    and performance-based goals for the programs as established under 
    section 902, and the progress on meeting the goals.
    (e) Periodic Reviews and Assessments.--
        (1) In general.--The Secretary shall enter into appropriate 
    arrangements with the National Academy of Sciences to conduct 
    periodic reviews and assessments of--
            (A) the research, development, demonstration, and 
        commercial application programs authorized by this Act and 
        amendments made by this Act;
            (B) the measurable cost and performance-based goals for the 
        programs as established under section 902, if any; and
            (C) the progress on meeting the goals.
        (2) Timing.--The reviews and assessments shall be conducted 
    every 5 years or more often as the Secretary considers necessary.
        (3) Reports.--The Secretary shall submit to Congress reports 
    describing the results of all the reviews and assessments.

SEC. 991. NATIONAL LABORATORY DESIGNATION.

    After the date of enactment of this Act, the Secretary shall not 
designate a facility that is not listed in section 2(3) as a National 
Laboratory.

SEC. 992. 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 National 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 National Laboratories;
        (3) a description of how equal employment opportunity practices 
    at the National 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 National 
    Laboratory;
        (5) a summary of outreach efforts to attract women and 
    minorities to the National Laboratories;
        (6) a summary of efforts to retain women and minorities in the 
    National Laboratories; and
        (7) a summary of collaboration efforts with the Office of 
    Federal Contract Compliance Programs to improve equal employment 
    opportunity practices at the National Laboratories.

SEC. 993. STRATEGY AND PLAN FOR SCIENCE AND ENERGY FACILITIES AND 
              INFRASTRUCTURE.

    (a) Facility and Infrastructure Policy.--
        (1) In general.--The Secretary shall develop and implement a 
    strategy for facilities and infrastructure supported primarily from 
    the Office of Science, the Office of Energy Efficiency and 
    Renewable Energy, the Office of Fossil Energy, or the Office of 
    Nuclear Energy, Science and Technology Programs at all National 
    Laboratories and single-purpose research facilities.
        (2) Strategy.--The strategy shall provide cost-effective means 
    for--
            (A) maintaining existing facilities and infrastructure;
            (B) closing unneeded facilities;
            (C) making facility modifications; and
            (D) building new facilities.
    (b) Report.--
        (1) In general.--The Secretary shall prepare and submit, along 
    with the budget request of the President submitted to Congress for 
    fiscal year 2008, a report describing the strategy developed under 
    subsection (a).
        (2) Contents.--For each National Laboratory and single-purpose 
    research facility that is primarily used for science and energy 
    research, the 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. 994. STRATEGIC RESEARCH PORTFOLIO ANALYSIS AND COORDINATION PLAN.

    (a) In General.--The Secretary shall periodically review all of the 
science and technology activities of the Department in a strategic 
framework that takes into account both the frontiers of science to 
which the Department can contribute and the national needs relevant to 
the Department's statutory missions.
    (b) Coordination Analysis and Plan.--As part of the review under 
subsection (a), the Secretary shall develop a coordination plan to 
improve coordination and collaboration in research, development, 
demonstration, and commercial application activities across Department 
organizational boundaries.
    (c) Plan Contents.--The plan shall describe--
        (1) cross-cutting scientific and technical issues and research 
    questions that span more than one program or major office of the 
    Department;
        (2) how the applied technology programs of the Department are 
    coordinating their activities, and addressing those questions;
        (3) ways in which the technical interchange within the 
    Department, particularly between the Office of Science and the 
    applied technology programs, can be enhanced, including ways in 
    which the research agendas of the Office of Science and the applied 
    programs can interact and assist each other;
        (4) a description of how the Secretary will ensure that the 
    Department's overall research agenda include, in addition to 
    fundamental, curiosity-driven research, fundamental research 
    related to topics of concern to the applied programs, and 
    applications in Departmental technology programs of research 
    results generated by fundamental, curiosity-driven research.
    (d) Plan Transmittal.--Not later than 12 months after the date of 
enactment of this Act, and every 4 years thereafter, the Secretary 
shall transmit to Congress the results of the review under subsection 
(a) and the coordination plan under subsection (b).

SEC. 995. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

    None of the funds authorized to be appropriated to the Secretary by 
this title may be used to award a management and operating contract for 
a National Laboratory (excluding those named in subparagraphs (G), (H), 
(N), and (O) of section 2 (3)), 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 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. 996. WESTERN MICHIGAN DEMONSTRATION PROJECT.

    The Administrator of the Environmental Protection Agency, in 
consultation with the State of Michigan and affected local officials, 
shall conduct a demonstration project to address the effect of 
transported ozone and ozone precursors in Southwestern Michigan. The 
demonstration program shall address projected nonattainment areas in 
Southwestern Michigan that include counties with design values for 
ozone of less than .095 based on years 2000 to 2002 or the most current 
3-year period of air quality data. The Administrator shall assess any 
difficulties such areas may experience in meeting the 8-hour national 
ambient air quality standard for ozone due to the effect of transported 
ozone or ozone precursors into the areas. The Administrator shall work 
with State and local officials to determine the extent of ozone and 
ozone precursor transport, to assess alternatives to achieve compliance 
with the 8-hour standard apart from local controls, and to determine 
the timeframe in which such compliance could take place. The 
Administrator shall complete this demonstration project no later than 2 
years after the date of enactment of this section and shall not impose 
any requirement or sanction under the Clean Air Act (42 U.S.C. 7401 et 
seq.) that might otherwise apply during the pendency of the 
demonstration project.

SEC. 997. ARCTIC ENGINEERING RESEARCH CENTER.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Secretary and the United States Arctic Research Commission, 
shall provide annual grants to a university located adjacent to the 
Arctic Energy Office of the Department of Energy, to establish and 
operate a university research center to be headquartered in Fairbanks 
and to be known as the ``Arctic Engineering Research Center'' (referred 
to in this section as the ``Center'').
    (b) Purpose.--The purpose of the Center shall be to conduct 
research on, and develop improved methods of, construction and use of 
materials to improve the overall performance of roads, bridges, 
residential, commercial, and industrial structures, and other 
infrastructure in the Arctic region, with an emphasis on developing--
        (1) new construction techniques for roads, bridges, rail, and 
    related transportation infrastructure and residential, commercial, 
    and industrial infrastructure that are capable of withstanding the 
    Arctic environment and using limited energy resources as 
    efficiently as practicable;
        (2) technologies and procedures for increasing road, bridge, 
    rail, and related transportation infrastructure and residential, 
    commercial, and industrial infrastructure safety, reliability, and 
    integrity in the Arctic region;
        (3) new materials and improving the performance and energy 
    efficiency of existing materials for the construction of roads, 
    bridges, rail, and related transportation infrastructure and 
    residential, commercial, and industrial infrastructure in the 
    Arctic region; and
        (4) recommendations for new local, regional, and State 
    permitting and building codes to ensure transportation and building 
    safety and efficient energy use when constructing, using, and 
    occupying such infrastructure in the Arctic region.
    (c) Objectives.--The Center shall carry out--
        (1) basic and applied research in the subjects described in 
    subsection (b), the products of which shall be judged by peers or 
    other experts in the field to advance the body of knowledge in 
    road, bridge, rail, and infrastructure engineering in the Arctic 
    region; and
        (2) an ongoing program of technology transfer that makes 
    research results available to potential users in a form that can be 
    implemented.
    (d) Amount of Grant.--For each of fiscal years 2006 through 2011, 
the Secretary shall provide a grant in the amount of $3,000,000 to the 
institution specified in subsection (a) to carry out this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $3,000,000 for each of fiscal 
years 2006 through 2011.

SEC. 998. BARROW GEOPHYSICAL RESEARCH FACILITY.

    (a) Establishment.--The Secretary of Commerce, in consultation with 
the Secretaries of Energy and the Interior, the Director of the 
National Science Foundation, and the Administrator of the Environmental 
Protection Agency, shall establish a joint research facility in Barrow, 
Alaska, to be known as the ``Barrow Geophysical Research Facility'', to 
support scientific research activities in the Arctic.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretaries of Commerce, Energy, and the Interior, 
the Director of the National Science Foundation, and the Administrator 
of the Environmental Protection Agency for the planning, design, 
construction, and support of the Barrow Geophysical Research Facility, 
$61,000,000.

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

SEC. 999A. 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) 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 architecture and technology, including 
    drilling to formations in the Outer Continental Shelf to depths 
    greater than 15,000 feet.
        (2) Unconventional natural gas and other petroleum resource 
    exploration and production technology.
        (3) The technology challenges of small producers.
        (4) Complementary research performed by the National Energy 
    Technology Laboratory for the Department.
    (c) 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.
    (d) Activities at the National Energy Technology Laboratory.--The 
Secretary, through the National Energy Technology Laboratory, shall 
carry out a program of research and other activities complementary to 
and supportive of the research programs under subsection (b).
    (e) Consultation With Secretary of the Interior.--In carrying out 
this subtitle, the Secretary shall consult regularly with the Secretary 
of the Interior.

SEC. 999B. ULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND 
              OTHER PETROLEUM RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out the activities under 
section 999A, to maximize the value of 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 shall contract with a 
    corporation that is structured as a consortium to administer the 
    programmatic activities outlined in this chapter. The program 
    consortium shall--
            (A) administer the program pursuant to subsection (f)(3), 
        utilizing program administration funds only;
            (B) issue research project solicitations upon approval of 
        the Secretary or the Secretary's designee;
            (C) make project awards to research performers upon 
        approval of the Secretary or the Secretary's designee;
            (D) disburse research funds to research performers awarded 
        under subsection (f) as directed by the Secretary in accordance 
        with the annual plan under subsection (e); and
            (E) 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 
            decisionmaking capacity under subsection (f)(3) 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 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) Requirement of section 501(c)(3) status.--The Secretary 
    shall not select a consortium under this section unless such 
    consortium is an organization described in section 501(c)(3) of the 
    Internal Revenue Code of 1986 and exempt from tax under such 
    section 501(a) of such Code.
        (4) Schedule.--Not later than 90 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 180 days after the date of 
    enactment of this Act. The Secretary shall select the program 
    consortium not later than 270 days 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 have 
    collectively demonstrated capabilities and experience in planning 
    and managing research, development, demonstration, and commercial 
    application programs for ultra-deepwater and unconventional natural 
    gas or other petroleum exploration or production.
        (7) Focus areas for awards.--
            (A) Ultra-deepwater resources.--Awards from allocations 
        under section 999H(d)(1) shall focus on the development and 
        demonstration of individual exploration and production 
        technologies as well as integrated systems technologies 
        including new architectures for production in ultra-deepwater.
            (B) Unconventional resources.--Awards from allocations 
        under section 999H(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.
            (C) Small producers.--Awards from allocations under section 
        999H(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) 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 program consortium shall 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 999D(a) and to the 
        Unconventional Resources Technology Advisory Committee 
        established under section 999D(b), and such Advisory Committees 
        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 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)(3).
        (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.--Upon approval of the Secretary the program 
    consortium shall make awards to research performers 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 
    provided that conflict of interest procedures in section 999B(c)(3) 
    are followed, entities who are members of the program consortium 
    are not precluded from receiving research awards as either 
    individual research performers or as research performers who are 
    members of a research collaboration.
        (2) Proposals.--Upon approval of the Secretary the program 
    consortium 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) 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.
    (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 auditor, 
which shall include a review by the General Accountability Office, 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 (including any 
review by the General Accountability Office) annually to the Secretary, 
who shall transmit the report to Congress, along with a plan to remedy 
any deficiencies cited in the report.
    (i) 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.
    (j) Program Review and Oversight.--The National Energy Technology 
Laboratory, on behalf of the Secretary, shall (1) issue a competitive 
solicitation for the program consortium, (2) evaluate, select, and 
award a contract or other agreement to a qualified program consortium, 
and (3) have primary review and oversight responsibility for the 
program consortium, including review and approval of research awards 
proposed to be made by the program consortium, to ensure that its 
activities are consistent with the purposes and requirements described 
in this subtitle. Up to 5 percent of program funds allocated under 
paragraphs (1) through (3) of section 999H(d) may be used for this 
purpose, including program direction and the establishment of a site 
office if determined to be necessary to carry out the purposes of this 
subsection.

SEC. 999C. 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 999A(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.--Two and one-half 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 988 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.
    (f) Information Sharing.--All results of the research administered 
by the program consortium shall be made available to the public 
consistent with Department policy and practice on information sharing 
and intellectual property agreements.

SEC. 999D. 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 999B(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 Secretary shall endeavor to have a 
    balanced representation of members on the Advisory Committee to 
    reflect the breadth of geographic areas of potential gas supply. 
    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;
            (D) individuals with expertise in the various geographic 
        areas of potential supply of unconventional onshore natural gas 
        and other petroleum in the United States;
            (E) no individuals who are Federal employees; and
            (F) 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 activities under this subtitle related to 
        unconventional natural gas and other petroleum resources; and
            (B) carry out section 999B(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.
    (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. 999E. 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. 999F. SUNSET.

    The authority provided by this subtitle shall terminate on 
September 30, 2014.

SEC. 999G. 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 administration funds.--The term ``program 
    administration funds'' means funds used by the program consortium 
    to administer the program under this subtitle, but not to exceed 10 
    percent of the total funds allocated under paragraphs (1) through 
    (3) of section 999H(d).
        (4) Program consortium.--The term ``program consortium'' means 
    the consortium selected under section 999B(d).
        (5) Program research funds.--The term ``program research 
    funds'' means funds awarded to research performers by the program 
    consortium consistent with the annual plan.
        (6) 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.
        (7) 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.
        (8) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
    water depth that is equal to or greater than 1,500 meters.
        (9) Ultra-deepwater architecture.--The term ``ultra-deepwater 
    architecture'' means the integration of technologies for the 
    exploration for, or production of, natural gas or other petroleum 
    resources located at ultra-deepwater depths.
        (10) Ultra-deepwater technology.--The term ``ultra-deepwater 
    technology'' means a discrete technology that is specially suited 
    to address one or more challenges associated with the exploration 
    for, or production of, natural gas or other petroleum resources 
    located at ultra-deepwater depths.
        (11) 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. 999H. FUNDING.

    (a) Oil and Gas Lease Income.--For each of fiscal years 2007 
through 2017, 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 (43 U.S.C. 1331 et seq.) and the 
Mineral Leasing Act (30 U.S.C. 181 et seq.) which are deposited in the 
Treasury, and after distribution of any such funds as described in 
subsection (c), $50,000,000 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)).
    (b) Obligational Authority.--Monies in the Fund shall be available 
to the Secretary for obligation under this part 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 coastal impact assistance program established under 
        section 31 of the Outer Continental Shelf Lands Act (as amended 
        by section 384).
    (d) Allocation.--Amounts obligated from the Fund under subsection 
(a)(1) in each fiscal year shall be allocated as follows:
        (1) 35 percent shall be for activities under section 
    999A(b)(1).
        (2) 32.5 percent shall be for activities under section 
    999A(b)(2).
        (3) 7.5 percent shall be for activities under section 
    999A(b)(3).
        (4) 25 percent shall be for complementary research under 
    section 999A(b)(4) and other activities under section 999A(b) to 
    include program direction funds, overall program oversight, 
    contract management, and the establishment and operation of a 
    technical committee to ensure that in-house research activities 
    funded under section 999A(b)(4) are technically complementary to, 
    and not duplicative of, research conducted under paragraphs (1), 
    (2), and (3) of section 999A(b).
    (e) Authorization of Appropriations.--In addition to other amounts 
that are made available to carry out this section, there is authorized 
to be appropriated to carry out this section $100,000,000 for each of 
fiscal years 2007 through 2016.
    (f) 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 X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1001. IMPROVED TECHNOLOGY TRANSFER OF ENERGY TECHNOLOGIES.

    (a) Technology Transfer Coordinator.--The Secretary shall appoint a 
Technology Transfer Coordinator to be the principal advisor to the 
Secretary on all matters relating to technology transfer and 
commercialization.
    (b) Qualifications.--The Coordinator shall be an individual who, by 
reason of professional background and experience, is specially 
qualified to advise the Secretary on matters pertaining to technology 
transfer at the Department.
    (c) Duties of the Coordinator.--The Coordinator shall oversee--
        (1) the activities of the Technology Transfer Working Group 
    established under subsection (d);
        (2) the expenditure of funds allocated for technology transfer 
    within the Department;
        (3) the activities of each technology partnership ombudsman 
    appointed under section 11 of the Technology Transfer 
    Commercialization Act of 2000 (42 U.S.C. 7261c); and
        (4) efforts to engage private sector entities, including 
    venture capital companies.
    (d) Technology Transfer Working Group.--The Secretary shall 
establish a Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities, to--
        (1) coordinate technology transfer activities occurring at 
    National Laboratories and single-purpose research facilities;
        (2) exchange information about technology transfer practices, 
    including alternative approaches to resolution of disputes 
    involving intellectual property rights and other technology 
    transfer matters; and
        (3) develop and disseminate to the public and prospective 
    technology partners information about opportunities and procedures 
    for technology transfer with the Department, including 
    opportunities and procedures related to alternative approaches to 
    resolution of disputes involving intellectual property rights and 
    other technology transfer matters.
    (e) Technology Commercialization Fund.--The Secretary shall 
establish an Energy Technology Commercialization Fund, using 0.9 
percent of the amount made available to the Department for applied 
energy research, development, demonstration, and commercial application 
for each fiscal year, to be used to provide matching funds with private 
partners to promote promising energy technologies for commercial 
purposes.
    (f) Technology Transfer Responsibility.--Nothing in this section 
affects the technology transfer responsibilities of Federal employees 
under the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3701 et seq.).
    (g) Planning and Reporting.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary shall submit to Congress a 
    technology transfer execution plan.
        (2) Updates.--Each year after the submission of the plan under 
    paragraph (1), the Secretary shall submit to Congress an updated 
    execution plan and reports that describe progress toward meeting 
    goals set forth in the execution plan and the funds expended under 
    subsection (e).

SEC. 1002. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Definitions.--In this section:
        (1) Program.--The term ``Program'' means the Technology 
    Infrastructure Program established under subsection (b).
        (2) Technology cluster.--The term ``technology cluster'' means 
    a concentration of technology-related business concerns, 
    institutions of higher education, or nonprofit institutions, that 
    reinforce each other's performance in the areas of technology 
    development through formal or informal relationships.
        (3) Technology-related business concern.--The term 
    ``technology-related business concern'' means a for-profit 
    corporation, company, association, firm, partnership, or small 
    business concern that--
            (A) conducts scientific or engineering research;
            (B) develops new technologies;
            (C) manufactures products based on new technologies; or
            (D) performs technological services.
    (b) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
    (c) Purpose.--The purpose of the Program shall be to improve the 
ability of National Laboratories and single-purpose research facilities 
to support departmental missions by--
        (1) stimulating the development of technology clusters that can 
    support departmental missions at the National Laboratories or 
    single-purpose research facilities;
        (2) improving the ability of National Laboratories and single-
    purpose research facilities to leverage and benefit from commercial 
    research, technology, products, processes, and services; and
        (3) encouraging the exchange of scientific and technological 
    expertise between--
            (A) National Laboratories or single-purpose research 
        facilities; and
            (B) entities that can support departmental missions at the 
        National Laboratories or single-purpose research facilities, 
        such as--
                (i) institutions of higher education;
                (ii) technology-related business concerns;
                (iii) nonprofit institutions; and
                (iv) agencies of State, tribal, or local governments.
    (d) Projects.--The Secretary shall authorize the director of each 
National Laboratory or single-purpose research facility to implement 
the Program at the National Laboratory or facility through one or more 
projects that meet the requirements of subsections (e) and (f).
    (e) Program Requirements.--
        (1) In general.--Each project funded under this section shall 
    meet the requirements of this subsection.
        (2) Entities.--Each project shall include at least one of each 
    of the following entities:
            (A) A business.
            (B) An institution of higher education.
            (C) A nonprofit institution.
            (D) An agency of a State, local, or tribal government.
        (3) Cost-sharing.--
            (A) In general.--The costs of carrying out projects under 
        this section shall be shared in accordance with section 988.
            (B) Sources.--The calculation of costs paid by the non-
        Federal sources for a project shall include cash, personnel, 
        services, equipment, and other resources expended on the 
        project after the commencement of the project.
            (C) Research and development expenses.--Independent 
        research and development expenses of Government contractors 
        that qualify for reimbursement under section 31.205-18(e) of 
        title 48, Code of Federal Regulations, issued pursuant to 
        section 25(c)(1) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421(c)(1)), may be credited towards costs paid 
        by non-Federal sources to a project, if the expenses meet the 
        other requirements of this section.
        (4) Competitive selection.--A project under this section shall 
    be competitively selected using procedures determined by the 
    Secretary.
        (5) Accounting.--Any participant that receives funds under this 
    section may use generally accepted accounting principles for 
    maintaining accounts, books, and records relating to the project.
        (6) Duration.--No Federal funds shall be made available under 
    this section for a construction project or for any project with a 
    duration of more than 5 years.
    (f) Selection Criteria.--
        (1) Departmental missions.--The Secretary shall allocate funds 
    under this section only if the Director of the National Laboratory 
    or single-purpose research facility managing the project determines 
    that the project is likely to improve the ability of the National 
    Laboratory or single-purpose research facility to achieve technical 
    success in meeting departmental missions.
        (2) Other criteria.--In selecting a project to receive Federal 
    funds, the Secretary shall consider--
            (A) the potential of the project to promote the development 
        of a commercially sustainable technology cluster following the 
        period of investment by the Department, which will derive most 
        of the demand for its products or services from the private 
        sector, and which will support departmental missions at the 
        participating National Laboratory or single-purpose research 
        facility;
            (B) the potential of the project to promote the use of 
        commercial research, technology, products, processes, and 
        services by the participating National Laboratory or single-
        purpose research facility to achieve its mission or the 
        commercial development of technological innovations made at the 
        participating National Laboratory or single-purpose research 
        facility;
            (C) the extent to which the project involves a wide variety 
        and number of institutions of higher education, nonprofit 
        institutions, and technology-related business concerns that can 
        support the missions of the participating National Laboratory 
        or single-purpose research facility and that will make 
        substantive contributions to achieving the goals of the 
        project;
            (D) the extent to which the project focuses on promoting 
        the development of technology-related business concerns that 
        are small businesses or involves such small businesses 
        substantively in the project; and
            (E) such other criteria as the Secretary determines to be 
        appropriate.
    (g) Allocation.--In allocating funds for projects approved under 
this section, the Secretary shall provide--
        (1) the Federal share of the project costs; and
        (2) additional funds to the National Laboratory or single-
    purpose research facility managing the project to permit the 
    National Laboratory or single-purpose research facility to carry 
    out activities relating to the project, and to coordinate the 
    activities with the project.
    (h) Report to Congress.--Not later than July 1, 2008, the Secretary 
shall submit to Congress a report on whether the Program should be 
continued and, if so, how the program should be managed.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2006 through 2008.

SEC. 1003. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to designate a small business 
advocate to--
        (1) increase the participation of small business concerns, 
    including socially and economically disadvantaged small business 
    concerns (as defined in section 8(a)(4) of the Small Business Act 
    (15 U.S.C. 637(a)(4))), in procurement, collaborative research, 
    technology licensing, and technology transfer activities conducted 
    by the National Laboratory or single-purpose research facility;
        (2) report to the Director of the National Laboratory or 
    single-purpose research facility on the actual participation of 
    small business concerns in procurement and collaborative research 
    along with recommendations, if appropriate, on how to improve 
    participation;
        (3) make available to small business concerns training, 
    mentoring, and information on how to participate in procurement and 
    collaborative research activities;
        (4) increase the awareness inside the National Laboratory or 
    single-purpose research facility of the capabilities and 
    opportunities presented by small business concerns; and
        (5) establish guidelines for the program under subsection (b) 
    and report on the effectiveness of the program to the Director of 
    the National Laboratory or single-purpose research facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the Director of a single-purpose research facility, to 
establish a program to provide small business concerns with--
        (1) assistance directed at making the small business concerns 
    more effective and efficient subcontractors or suppliers to the 
    National Laboratory or single-purpose research facilities; or
        (2) general technical assistance, the cost of which shall not 
    exceed $10,000 per instance of assistance, to improve the products 
    or services of the small business concern.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to small business concerns.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for activities under this section 
$5,000,000 for each of fiscal years 2006 through 2008.

SEC. 1004. OUTREACH.

    The Secretary shall ensure that each program authorized by this Act 
or an amendment made by this Act includes an outreach component to 
provide information, as appropriate, to manufacturers, consumers, 
engineers, architects, builders, energy service companies, institutions 
of higher education, facility planners and managers, State and local 
governments, and other entities.

SEC. 1005. RELATIONSHIP TO OTHER LAWS.

    Except as otherwise provided in this Act or an amendment made by 
this Act, the Secretary shall carry out the research, development, 
demonstration, and commercial application programs, projects, and 
activities authorized by this Act or an amendment made by this Act in 
accordance with the applicable provisions of--
        (1) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.);
        (2) the Federal Nonnuclear Energy Research and Development Act 
    of 1974 (42 U.S.C. 5901 et seq.);
        (3) the Energy Policy Act of 1992 (42 U.S.C. 13201 et seq.);
        (4) the Stevenson-Wydler Technology Innovation Act of 1980 (15 
    U.S.C. 3701 et seq.);
        (5) chapter 18 of title 35, United States Code (commonly known 
    as the ``Bayh-Dole Act''); and
        (6) any other Act under which the Secretary is authorized to 
    carry out the programs, projects, and activities.

SEC. 1006. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Effective Top-Level Coordination of Research and Development 
Programs.--Section 202 of the Department of Energy Organization Act (42 
U.S.C. 7132) is amended by striking subsection (b) and inserting the 
following:
    ``(b)(1) There shall be in the Department an Under Secretary for 
Science, who shall be appointed by the President, by and with the 
advice and consent of the Senate.
    ``(2) The Under Secretary shall be compensated at the rate provided 
for level III of the Executive Schedule under section 5314 of title 5, 
United States Code.
    ``(3) The Under Secretary for Science shall be appointed from among 
persons who--
        ``(A) have extensive background in scientific or engineering 
    fields; and
        ``(B) are well qualified to manage the civilian research and 
    development programs of the Department.
    ``(4) The Under Secretary for Science shall--
        ``(A) serve as the Science and Technology Advisor to the 
    Secretary;
        ``(B) monitor the research and development programs of the 
    Department in order to advise the Secretary with respect to any 
    undesirable duplication or gaps in the programs;
        ``(C) advise the Secretary with respect to the well-being and 
    management of the multipurpose laboratories under the jurisdiction 
    of the Department;
        ``(D) advise the Secretary with respect to education and 
    training activities required for effective short- and long-term 
    basic and applied research activities of the Department;
        ``(E) advise the Secretary with respect to grants and other 
    forms of financial assistance required for effective short- and 
    long-term basic and applied research activities of the Department;
        ``(F) advise the Secretary with respect to long-term planning, 
    coordination, and development of a strategic framework for 
    Department research and development activities; and
        ``(G) carry out such additional duties assigned to the Under 
    Secretary by the Secretary relating to basic and applied research, 
    including supervision or support of research activities carried out 
    by any of the Assistant Secretaries designated by section 203 of 
    this Act, as the Secretary considers advantageous.''.
    (b) Additional Assistant Secretary Position.--
        (1) In general.--Section 203(a) of the Department of Energy 
    Organization Act (42 U.S.C. 7133(a)) is amended in the first 
    sentence by striking ``six Assistant Secretaries'' and inserting 
    ``7 Assistant Secretaries''.
        (2) Assistant secretary level.--It is the sense of Congress 
    that the leadership for departmental missions in nuclear energy 
    should be at the Assistant Secretary level.
    (c) Technical and Conforming Amendments.--
        (1) Section 202 of the Department of Energy Organization Act 
    (42 U.S.C. 7132) is amended by adding at the end the following:
    ``(d)(1) There shall be in the Department an Under Secretary, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe, consistent with this section.
    ``(2) The Under Secretary shall be compensated at the rate provided 
for level III of the Executive Schedule under section 5314 of title 5, 
United States Code.
    ``(e)(1) There shall be in the Department a General Counsel, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe.
    ``(2) The General Counsel shall be compensated at the rate provided 
for level IV of the Executive Schedule under section 5315 of title 5, 
United States Code.''.
        (2) Section 5314 of title 5, United States Code, is amended by 
    striking ``Under Secretaries of Energy (2)'' and inserting ``Under 
    Secretaries of Energy (3)''.
        (3) Section 5315 of title 5, United States Code, is amended by 
    striking ``Assistant Secretaries of Energy (6)'' and inserting 
    ``Assistant Secretaries of Energy (7)''.
        (4) Section 209(b) of the Department of Energy Organization Act 
    (42 U.S.C. 7139(b)) is amended by striking paragraph (6) and 
    inserting the following:
        ``(6) to carry out such additional duties assigned to the 
    Office by the Secretary.''.

SEC. 1007. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act (42 U.S.C. 
7256) is amended by adding at the end the following:
    ``(g)(1) In addition to authority granted to the Secretary under 
any other provision of law, the Secretary may exercise the same 
authority to enter into transactions (other than contracts, cooperative 
agreements, and grants), subject to the same terms and conditions as 
the Secretary of Defense under section 2371 of title 10, United States 
Code (other than subsections (b) and (f) of that section).
    ``(2) In applying section 2371 of title 10, United States Code, to 
the Secretary under paragraph (1)--
        ``(A) the term `basic' shall be replaced by the term 
    `research';
        ``(B) the term `applied' shall be replaced by the term 
    `development'; and
        ``(C) the terms `advanced research projects' and `advanced 
    research' shall be replaced by the term `demonstration projects'.
    ``(3) The authority of the Secretary under paragraph (1) shall not 
be subject to--
        ``(A) section 9 of the Federal Nonnuclear Energy Research and 
    Development Act of 1974 (42 U.S.C. 5908); or
        ``(B) section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 
    2182).
    ``(4)(A) The Secretary shall use such competitive, merit-based 
selection procedures in entering into transactions under paragraph (1), 
as the Secretary determines in writing to be practicable.
    ``(B) A transaction under paragraph (1) shall relate to a research, 
development, or demonstration project only if the Secretary determines 
in writing that the use of a standard contract, grant, or cooperative 
agreement for the project is not feasible or appropriate.
    ``(5) The Secretary may protect from disclosure, for up to 5 years 
after the date on which the information is developed, any information 
developed pursuant to a transaction under paragraph (1) that would be 
protected from disclosure under section 552(b)(4) of title 5, United 
States Code, if obtained from a person other than a Federal agency.
    ``(6)(A) Not later than 90 days after the date of enactment of this 
subsection, the Secretary shall issue guidelines for transactions under 
paragraph (1).
    ``(B) The guidelines shall be published in the Federal Register for 
public comment in accordance with rulemaking procedures of the 
Department.
    ``(C) The Secretary shall not have authority to carry out 
transactions under paragraph (1) until the guidelines for transactions 
required under subparagraph (A) are final.
    ``(7) The annual report of the head of an executive agency under 
section 2371(h) of title 10, United States Code, shall be submitted to 
Congress.
    ``(8)(A) In this paragraph, the term `nontraditional Government 
contractor' has the meaning given the term `nontraditional defense 
contractor' in section 845(f) of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note).
    ``(B) Not later than 1 year after the date on which the final 
guidelines are published under paragraph (6), the Comptroller General 
of the United States shall submit to Congress a report describing--
        ``(i) the use by the Department of authorities under this 
    section, including the ability to attract nontraditional Government 
    contractors; and
        ``(ii) whether additional safeguards are necessary to carry out 
    the authorities.
    ``(9) The authority of the Secretary under this subsection may be 
delegated only to an officer of the Department who is appointed by the 
President by and with the advice and consent of the Senate.
    ``(10) Notwithstanding any other provision of law, the authority to 
enter into transactions under paragraph (1) shall terminate on 
September 30, 2010.''.

SEC. 1008. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF SCIENCE AND 
              TECHNOLOGY.

    (a) Authority.--The Secretary may carry out a program to award cash 
prizes in recognition of breakthrough achievements in research, 
development, demonstration, and commercial application that have the 
potential for application to the performance of the mission of the 
Department.
    (b) Competition Requirements.--The program under subsection (a) may 
include prizes for the achievement of goals articulated by the 
Secretary in a specific area through a widely advertised solicitation 
of submission of results for research, development, demonstration, or 
commercial application projects.
    (c) Prizes for Processes and Technologies to Reduce Dependence on 
Imported Oil.--The Secretary, in cooperation with the Freedom Prize 
Foundation, shall support a program of awarding prizes, to be known as 
Freedom Prizes, to encourage and recognize the development and 
deployment of processes and technologies that serve to reduce the 
dependence of the United States on imported oil.
    (d) Relationship to Other Authority.--The program under subsection 
(a) may be carried out in conjunction with or in addition to the 
exercise of any other authority of the Secretary to acquire, support, 
or stimulate research, development, demonstration, or commercial 
application projects.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated--
        (1) $10,000,000 to carry out the program under subsection (a); 
    and
        (2) $5,000,000 to carry out the program under subsection (c).

SEC. 1009. TECHNICAL CORRECTIONS.

    (a) Coal Research and Development.--
        (1) In general.--Public Law 86-599 (30 U.S.C. 661 et seq.) is 
    amended--
            (A) by striking the first section (30 U.S.C. 661) and 
        inserting the following:
    ``Sec. 1. (a) This Act may be cited as the `Coal Research and 
Development Act of 1960'.
    ``(b) In this Act:
        ``(1) The term `research' means scientific, technical, and 
    economic research and the practical application of that research.
        ``(2) The term `Secretary' means the Secretary of Energy.'';
            (B) in section 2 (30 U.S.C. 662), by striking ``shall 
        establish within'' and all that follows through ``such 
        Office'';
            (C) by striking sections 3, 4, and 7 (30 U.S.C. 663, 664, 
        667); and
            (D) by redesignating sections 5, 6, and 8 (30 U.S.C. 665, 
        666, 668) as sections 3, 4, and 5, respectively.
        (2) Patents.--Section 210(a)(8) of title 35, United States 
    Code, is amended by striking ``Coal Research Development Act of 
    1960'' and inserting ``Coal Research and Development Act of 1960''.
    (b) Nonnuclear Energy Research and Development.--
        (1) Short title; definitions.--Section 1 of the Federal 
    Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 
    5902) is amended to read as follows:


                      ``SHORT TITLE AND DEFINITIONS

    ``Sec. 1. (a) This Act may be cited as the `Federal Nonnuclear 
Energy Research and Development Act of 1974'.
    ``(b) In this Act:
        ``(1) The term `Department' means the Department of Energy.
        ``(2) The term `Secretary' means the Secretary of Energy.''.
        (2) Statement of policy.--Section 3(b) of the Federal 
    Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 
    5902(b)) is amended--
            (A) in paragraph (1), by striking ``Energy Research and 
        Development Administration'' and inserting ``Department'';
            (B) in paragraph (2), by striking ``Administrator of the 
        Energy Research and Development Administration (hereinafter in 
        this Act referred to as the `Administrator')'' and inserting 
        ``Secretary''; and
            (C) in paragraph (3)--
                (i) by striking ``Administrator'' and inserting 
            ``Secretary''; and
                (ii) by inserting ``Demonstration'' after ``Cooling''.
        (3) Duties and authorities.--Section 4 of the Federal 
    Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 
    5903) is amended--
            (A) by striking the section heading and inserting the 
        following: ``duties and authorities of the secretary''; and
            (B) in the matter preceding subsection (a), by striking 
        ``Administrator'' and inserting ``Secretary''.
        (4) Comprehensive planning and programming.--Section 6 of the 
    Federal Nonnuclear Energy Research and Development Act of 1974 (42 
    U.S.C. 5905) is amended--
            (A) by striking ``Administrator'' each place it appears and 
        inserting ``Secretary''; and
            (B) in subsection (b)(3)--
                (i) in subparagraph (I), by inserting ``Demonstration'' 
            after ``Cooling''; and
                (ii) in subparagraph (L), by inserting ``Energy'' after 
            ``Solar''.
        (5) Forms of federal assistance.--Section 7 of the Federal 
    Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 
    5906) is amended--
            (A) by striking ``Administrator'' each place it appears and 
        inserting ``Secretary''; and
            (B) in subsection (a)(4), by striking ``of the section''.
        (6) Demonstrations.--Section 8 of the Federal Nonnuclear Energy 
    Research and Development Act of 1974 (42 U.S.C. 5907) is amended--
            (A) in subsections (a) through (c), by striking 
        ``Administrator'' each place it appears and inserting 
        ``Secretary'';
            (B) in subsection (d)--
                (i) in the first sentence of paragraph (1), by 
            inserting ``of the Energy Research and Development 
            Administration'' after ``Administrator''; and
                (ii) in paragraph (3), by striking ``Administrator'' 
            and inserting ``Secretary''; and
            (C) in subsection (f)--
                (i) by striking ``Administrator'' each place it appears 
            and inserting ``Secretary''; and
                (ii) in the proviso of the first sentence, by striking 
            ``Administrator's'' and inserting ``Secretary's''.
        (7) Patent policy.--Section 9 of the Federal Nonnuclear Energy 
    Research and Development Act of 1974 (42 U.S.C. 5908) is amended--
            (A) by striking ``Administration'' each place it appears 
        and inserting ``Department'';
            (B) by striking ``Administrator'' each place it appears and 
        inserting ``Secretary''; and
            (C) in subsection (c)(3), by striking ``Administration's'' 
        and inserting ``Department's''.
        (8) Acquisition of essential materials.--Section 12 of the 
    Federal Nonnuclear Energy Research and Development Act of 1974 (42 
    U.S.C. 5911) is amended by striking subsection (b) and inserting 
    the following:
    ``(b) A rule or order under subsection (a) shall be considered to 
be a major rule subject to chapter 8 of title 5, United States Code.''.
        (9) Water resource evaluation.--Section 13 of the Federal 
    Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 
    5912) is amended by striking ``Administrator'' each place it 
    appears and inserting ``Secretary''.
        (10) Authorization of appropriations.--Section 16 of the 
    Federal Nonnuclear Energy Research and Development Act of 1974 (42 
    U.S.C. 5915) is amended--
            (A) by striking the section heading and inserting the 
        following: ``authorization of appropriations'';
            (B) by striking ``(a) There may be appropriated to the 
        Administrator'' and inserting ``There may be appropriated to 
        the Secretary''; and
            (C) by striking subsections (b) and (c).
        (11) Central source of nonnuclear energy information.--Section 
    17 of the Federal Nonnuclear Energy Research and Development Act of 
    1974 (42 U.S.C. 5916) is amended--
            (A) by striking ``Administrator'' each place it appears and 
        inserting ``Secretary'';
            (B) in the first sentence, by striking ``Administrator's'';
            (C) in the second sentence, by striking ``he'' and 
        inserting ``the Secretary'';
            (D) in the third sentence--
                (i) in paragraph (2) of the first proviso, by striking 
            ``section 1905 or title 18'' and inserting ``section 1905 
            of title 18''; and
                (ii) in subparagraph (B) of the second proviso--

                    (I) by striking ``the Federal Energy 
                Administration,'';
                    (II) by striking ``the Federal Power Commission,'' 
                and inserting ``the Federal Energy Regulatory 
                Commission''; and
                    (III) by striking ``General Accounting Office'' and 
                inserting ``Government Accountability Office''; and

            (E) in the last sentence, by inserting ``or ranking 
        minority member'' after ``chairman''.
        (12) Energy information, loan guarantees, and financial 
    support.--Sections 18 through 20 of the Federal Nonnuclear Energy 
    Research and Development Act of 1974 (42 U.S.C. 5917 through 5920) 
    are repealed.
    (c) Stevenson-Wydler Technology Innovation Act of 1980.--Section 20 
of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3712) is amended by striking ``and the National Science Foundation'' 
and inserting ``, the Secretary of Energy, and the Director of the 
National Science Foundation''.

SEC. 1010. UNIVERSITY COLLABORATION.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary shall transmit to the Congress a report that examines the 
feasibility of promoting collaborations between major universities and 
other colleges and universities in grants, contracts, and cooperative 
agreements made by the Secretary for energy projects. For purposes of 
this section, major universities are schools listed by the Carnegie 
Foundation as Doctoral Research Extensive Universities. The Secretary 
shall also consider providing incentives to increase the inclusion of 
small institutions of higher education, including minority-serving 
institutions, in energy grants, contracts, and cooperative agreements.

SEC. 1011. SENSE OF CONGRESS.

    It is the sense of Congress that--
        (1) the Secretary should develop and implement more stringent 
    procurement and inventory controls, including controls on the 
    purchase card program, to prevent waste, fraud, and abuse of 
    taxpayer funds by employees and contractors of the Department; and
        (2) the Department's Inspector General should continue to 
    closely review purchase card purchases and other procurement and 
    inventory practices at the Department.

                    TITLE XI--PERSONNEL AND TRAINING

SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Definitions.--In this section:
        (1) Energy technology industry.--The term ``energy technology 
    industry'' includes--
            (A) a renewable energy industry;
            (B) a company that develops or commercializes a device to 
        increase energy efficiency;
            (C) the oil and gas industry;
            (D) the nuclear power industry;
            (E) the coal industry;
            (F) the electric utility industry; and
            (G) any other industrial sector, as the Secretary 
        determines to be appropriate.
        (2) Skilled technical personnel.--The term ``skilled technical 
    personnel'' means--
            (A) journey- and apprentice-level workers who are enrolled 
        in, or have completed, a federally-recognized or State-
        recognized apprenticeship program; and
            (B) other skilled workers in energy technology industries, 
        as determined by the Secretary.
    (b) Workforce Trends.--
        (1) Monitoring.--The Secretary, in consultation with, and using 
    data collected by, the Secretary of Labor, shall monitor trends in 
    the workforce of--
            (A) skilled technical personnel that support energy 
        technology industries; and
            (B) electric power and transmission engineers.
        (2) Report on trends.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary shall submit to Congress a 
    report on current trends under paragraph (1), with recommendations 
    (as appropriate) to meet the future labor requirements for the 
    energy technology industries.
        (3) Report on shortage.--As soon as practicable after the date 
    on which the Secretary identifies or predicts a significant 
    national shortage of skilled technical personnel in one or more 
    energy technology industries, the Secretary shall submit to 
    Congress a report describing the shortage.
    (c) Traineeship Grants for Skilled Technical Personnel.--The 
Secretary, in consultation with the Secretary of Labor, may establish 
programs in the appropriate offices of the Department under which the 
Secretary provides grants to enhance training (including distance 
learning) for any workforce category for which a shortage is identified 
or predicted under subsection (b)(2).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2006 through 2008.

SEC. 1102. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

    (a) Science Education Enhancement Fund.--Section 3164 of the 
Department of Energy Science Education Enhancement Act (42 U.S.C. 
7381a) is amended by adding at the end:
    ``(c) Science Education Enhancement Fund.--The Secretary shall use 
not less than 0.3 percent of the amount made available to the 
Department for research, development, demonstration, and commercial 
application for fiscal year 2006 and each fiscal year thereafter to 
carry out activities authorized by this part.''.
    (b) Authorized Education Activities.--Section 3165 of the 
Department of Energy Science Education Enhancement Act (42 U.S.C. 
7381b) is amended by adding at the end the following:
        ``(14) Support competitive events for students under the 
    supervision of teachers, designed to encourage student interest and 
    knowledge in science and mathematics.
        ``(15) Support competitively-awarded, peer-reviewed programs to 
    promote professional development for mathematics teachers and 
    science teachers who teach in grades from kindergarten through 
    grade 12 at Department research and development facilities.
        ``(16) Support summer internships at Department research and 
    development facilities, for mathematics teachers and science 
    teachers who teach in grades from kindergarten through grade 12.
        ``(17) Sponsor and assist in educational and training 
    activities identified as critical skills needs for future workforce 
    development at Department research and development facilities.''.
    (c) Educational Partnerships.--Section 3166(b) of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381c(b)) is 
amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) loaning or transferring equipment to the institution;'';
        (2) in paragraph (5), by striking ``and'' at the end;
        (3) in paragraph (6), by striking the period at the end and 
    inserting ``; and''; and
        (4) by adding at the end the following:
        ``(7) providing funds to educational institutions to hire 
    personnel to facilitate interactions between local school systems, 
    Department research and development facilities, and corporate and 
    governmental entities.''.
    (d) Definition of Department Research and Development Facilities.--
Section 3167(3) of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381d(3)) is amended by striking ``from the 
Office of Science of the Department of Energy'' and inserting ``by the 
Department of Energy''.
    (e) Study.--
        (1) In general.--The Secretary, in consultation with the 
    Secretary of Education, shall enter into an arrangement with the 
    National Academy of Public Administration to conduct a study of the 
    priorities, quality, local and regional flexibility, and plans for 
    educational programs at Department research and development 
    facilities.
        (2) Inclusion.--The study shall recommend measures that the 
    Secretary may take to improve Department-wide coordination of 
    educational, workforce development, and critical skills development 
    activities.
        (3) Report.--Not later than 2 years after the date of enactment 
    of this Act, the Secretary shall submit to Congress a report on the 
    results of the study conducted under this subsection.

SEC. 1103. TRAINING GUIDELINES FOR NONNUCLEAR ELECTRIC ENERGY INDUSTRY 
              PERSONNEL.

    (a) In General.--The Secretary of Labor, in consultation with the 
Secretary and in conjunction with the electric industry and recognized 
employee representatives, shall develop model personnel training 
guidelines to support the reliability and safety of the nonnuclear 
electric system.
    (b) Requirements.--The training guidelines under subsection (a) 
shall, at a minimum--
        (1) include training requirements for workers engaged in the 
    construction, operation, inspection, or maintenance of nonnuclear 
    electric generation, transmission, or distribution systems, 
    including requirements relating to--
            (A) competency;
            (B) certification; and
            (C) assessment, including--
                (i) initial and continuous evaluation of workers;
                (ii) recertification procedures; and
                (iii) methods for examining or testing the 
            qualification of an individual who performs a covered task; 
            and
        (2) consolidate training guidelines in existence on the date on 
    which the guidelines under subsection (a) are developed relating to 
    the construction, operation, maintenance, and inspection of 
    nonnuclear electric generation, transmission, and distribution 
    facilities, such as guidelines established by the National Electric 
    Safety Code and other industry consensus standards.

SEC. 1104. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING 
              TECHNOLOGIES.

    The Secretary shall support the ongoing activities of and explore 
opportunities for expansion of the National Center for Energy 
Management and Building Technologies to carry out research, education, 
and training activities to facilitate the improvement of energy 
efficiency, indoor environmental quality, and security of industrial, 
commercial, residential, and public buildings.

SEC. 1105. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
              CAREERS.

    (a) Science Education Programs.--Section 3164 of the Department of 
Energy Science Education Enhancement Act (42 U.S.C. 7381a) (as amended 
by section 1102(a)) is amended by adding at the end the following:
    ``(d) Programs for Students From Under-Represented Groups.--In 
carrying out a program under subsection (a), the Secretary shall give 
priority to activities that are designed to encourage students from 
under-represented groups to pursue scientific and technical careers.''.
    (b) Partnerships With Historically Black Colleges and Universities, 
Hispanic-Servicing Institutions, and Tribal Colleges.--The Department 
of Energy Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is 
amended--
        (1) by redesignating sections 3167 and 3168 as sections 3168 
    and 3169, respectively; and
        (2) by inserting after section 3166 the following:

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

    ``(a) Definitions.--In this section:
        ``(1) Hispanic-serving institution.--The term `Hispanic-serving 
    institution' has the meaning given the term in section 502(a) of 
    the Higher Education Act of 1965 (20 U.S.C. 1101a(a)).
        ``(2) Historically black college or university.--The term 
    `historically Black college or university' has the meaning given 
    the term `part B institution' in section 322 of the Higher 
    Education Act of 1965 (20 U.S.C. 1061).
        ``(3) National laboratory.--The term `National Laboratory' has 
    the meaning given the term in section 2 of the Energy Policy Act of 
    2005.
        ``(4) Science facility.--The term `science facility' has the 
    meaning given the term `single-purpose research facility' in 
    section 903 of the Energy Policy Act of 2005.
        ``(5) Tribal college.--The term `tribal college' has the 
    meaning given the term `tribally controlled college or university' 
    in section 2(a) of the Tribally Controlled College Assistance Act 
    of 1978 (25 U.S.C. 1801(a)).
    ``(b) Education Partnership.--The Secretary shall require the 
director of each National Laboratory, and may require the head of any 
science facility, to increase the participation of historically Black 
colleges or universities, Hispanic-serving institutions, or tribal 
colleges in any activity that increases the capacity of the 
historically Black colleges or universities, Hispanic-serving 
institutions, or tribal colleges to train personnel in science or 
engineering.
    ``(c) Activities.--An activity described in subsection (b) 
includes--
        ``(1) collaborative research;
        ``(2) equipment transfer;
        ``(3) training activities carried out at a National Laboratory 
    or science facility; and
        ``(4) mentoring activities carried out at a National Laboratory 
    or science facility.
    ``(d) Report.--Not later than 2 years after the date of enactment 
of this subsection, the Secretary shall submit to Congress a report 
describing the activities carried out under this section.''.

SEC. 1106. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATIONAL 
              CENTER.

    (a) Establishment.--The Secretary shall support the establishment 
of a National Power Plant Operations Technology and Education Center 
(referred to in this section as the ``Center''), to address the need 
for training and educating certified operators and technicians for the 
electric power industry.
    (b) Location of Center.--The Secretary shall support the 
establishment of the Center at an institution of higher education that 
has--
        (1) expertise in providing degree programs in electric power 
    generation, transmission, and distribution technologies;
        (2) expertise in providing onsite and Internet-based training; 
    and
        (3) demonstrated responsiveness to workforce and training 
    requirements in the electric power industry.
    (c) Training and Continuing Education.--
        (1) In general.--The Center shall provide training and 
    continuing education in electric power generation, transmission, 
    and distribution technologies and operations.
        (2) Location.--The Center shall carry out training and 
    education activities under paragraph (1)--
            (A) at the Center; and
            (B) through Internet-based information technologies that 
        allow for learning at remote sites.

                         TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Electricity Modernization Act of 
2005''.

                   Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

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

``SEC. 215. ELECTRIC RELIABILITY.

    ``(a) Definitions.--For purposes of this section:
        ``(1) The term `bulk-power system' means--
            ``(A) facilities and control systems necessary for 
        operating an interconnected electric energy transmission 
        network (or any portion thereof); and
            ``(B) electric energy from generation facilities needed to 
        maintain transmission system reliability.
    The term does not include facilities used in the local distribution 
    of electric energy.
        ``(2) The terms `Electric Reliability Organization' and `ERO' 
    mean the organization certified by the Commission under subsection 
    (c) the purpose of which is to establish and enforce reliability 
    standards for the bulk-power system, subject to Commission review.
        ``(3) The term `reliability standard' means a requirement, 
    approved by the Commission under this section, to provide for 
    reliable operation of the bulk-power system. The term includes 
    requirements for the operation of existing bulk-power system 
    facilities, including cybersecurity protection, and the design of 
    planned additions or modifications to such facilities to the extent 
    necessary to provide for reliable operation of the bulk-power 
    system, but the term does not include any requirement to enlarge 
    such facilities or to construct new transmission capacity or 
    generation capacity.
        ``(4) The term `reliable operation' means operating the 
    elements of the bulk-power system within equipment and electric 
    system thermal, voltage, and stability limits so that instability, 
    uncontrolled separation, or cascading failures of such system will 
    not occur as a result of a sudden disturbance, including a 
    cybersecurity incident, or unanticipated failure of system 
    elements.
        ``(5) The term `Interconnection' means a geographic area in 
    which the operation of bulk-power system components is synchronized 
    such that the failure of one or more of such components may 
    adversely affect the ability of the operators of other components 
    within the system to maintain reliable operation of the facilities 
    within their control.
        ``(6) The term `transmission organization' means a Regional 
    Transmission Organization, Independent System Operator, independent 
    transmission provider, or other transmission organization finally 
    approved by the Commission for the operation of transmission 
    facilities.
        ``(7) The term `regional entity' means an entity having 
    enforcement authority pursuant to subsection (e)(4).
        ``(8) The term `cybersecurity incident' means a malicious act 
    or suspicious event that disrupts, or was an attempt to disrupt, 
    the operation of those programmable electronic devices and 
    communication networks including hardware, software and data that 
    are essential to the reliable operation of the bulk power system.
    ``(b) Jurisdiction and Applicability.--(1) The Commission shall 
have jurisdiction, within the United States, over the ERO certified by 
the Commission under subsection (c), any regional entities, and all 
users, owners and operators of the bulk-power system, including but not 
limited to the entities described in section 201(f), for purposes of 
approving reliability standards established under this section and 
enforcing compliance with this section. All users, owners and operators 
of the bulk-power system shall comply with reliability standards that 
take effect under this section.
    ``(2) The Commission shall issue a final rule to implement the 
requirements of this section not later than 180 days after the date of 
enactment of this section.
    ``(c) Certification.--Following the issuance of a Commission rule 
under subsection (b)(2), any person may submit an application to the 
Commission for certification as the Electric Reliability Organization. 
The Commission may certify one such ERO if the Commission determines 
that such ERO--
        ``(1) has the ability to develop and enforce, subject to 
    subsection (e)(2), reliability standards that provide for an 
    adequate level of reliability of the bulk-power system; and
        ``(2) has established rules that--
            ``(A) assure its independence of the users and owners and 
        operators of the bulk-power system, while assuring fair 
        stakeholder representation in the selection of its directors 
        and balanced decisionmaking in any ERO committee or subordinate 
        organizational structure;
            ``(B) allocate equitably reasonable dues, fees, and other 
        charges among end users for all activities under this section;
            ``(C) provide fair and impartial procedures for enforcement 
        of reliability standards through the imposition of penalties in 
        accordance with subsection (e) (including limitations on 
        activities, functions, or operations, or other appropriate 
        sanctions);
            ``(D) provide for reasonable notice and opportunity for 
        public comment, due process, openness, and balance of interests 
        in developing reliability standards and otherwise exercising 
        its duties; and
            ``(E) provide for taking, after certification, appropriate 
        steps to gain recognition in Canada and Mexico.
    ``(d) Reliability Standards.--(1) The Electric Reliability 
Organization shall file each reliability standard or modification to a 
reliability standard that it proposes to be made effective under this 
section with the Commission.
    ``(2) The Commission may approve, by rule or order, a proposed 
reliability standard or modification to a reliability standard if it 
determines that the standard is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest. The 
Commission shall give due weight to the technical expertise of the 
Electric Reliability Organization with respect to the content of a 
proposed standard or modification to a reliability standard and to the 
technical expertise of a regional entity organized on an 
Interconnection-wide basis with respect to a reliability standard to be 
applicable within that Interconnection, but shall not defer with 
respect to the effect of a standard on competition. A proposed standard 
or modification shall take effect upon approval by the Commission.
    ``(3) The Electric Reliability Organization shall rebuttably 
presume that a proposal from a regional entity organized on an 
Interconnection-wide basis for a reliability standard or modification 
to a reliability standard to be applicable on an Interconnection-wide 
basis is just, reasonable, and not unduly discriminatory or 
preferential, and in the public interest.
    ``(4) The Commission shall remand to the Electric Reliability 
Organization for further consideration a proposed reliability standard 
or a modification to a reliability standard that the Commission 
disapproves in whole or in part.
    ``(5) The Commission, upon its own motion or upon complaint, may 
order the Electric Reliability Organization to submit to the Commission 
a proposed reliability standard or a modification to a reliability 
standard that addresses a specific matter if the Commission considers 
such a new or modified reliability standard appropriate to carry out 
this section.
    ``(6) The final rule adopted under subsection (b)(2) shall include 
fair processes for the identification and timely resolution of any 
conflict between a reliability standard and any function, rule, order, 
tariff, rate schedule, or agreement accepted, approved, or ordered by 
the Commission applicable to a transmission organization. Such 
transmission organization shall continue to comply with such function, 
rule, order, tariff, rate schedule or agreement accepted, approved, or 
ordered by the Commission until--
        ``(A) the Commission finds a conflict exists between a 
    reliability standard and any such provision;
        ``(B) the Commission orders a change to such provision pursuant 
    to section 206 of this part; and
        ``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be 
changed as a result of such a conflict, it shall order the ERO to 
develop and file with the Commission a modified reliability standard 
under paragraph (4) or (5) of this subsection.
    ``(e) Enforcement.--(1) The ERO may impose, subject to paragraph 
(2), a penalty on a user or owner or operator of the bulk-power system 
for a violation of a reliability standard approved by the Commission 
under subsection (d) if the ERO, after notice and an opportunity for a 
hearing--
        ``(A) finds that the user or owner or operator has violated a 
    reliability standard approved by the Commission under subsection 
    (d); and
        ``(B) files notice and the record of the proceeding with the 
    Commission.
    ``(2) A penalty imposed under paragraph (1) may take effect not 
earlier than the 31st day after the ERO files with the Commission 
notice of the penalty and the record of proceedings. Such penalty shall 
be subject to review by the Commission, on its own motion or upon 
application by the user, owner or operator that is the subject of the 
penalty filed within 30 days after the date such notice is filed with 
the Commission. Application to the Commission for review, or the 
initiation of review by the Commission on its own motion, shall not 
operate as a stay of such penalty unless the Commission otherwise 
orders upon its own motion or upon application by the user, owner or 
operator that is the subject of such penalty. In any proceeding to 
review a penalty imposed under paragraph (1), the Commission, after 
notice and opportunity for hearing (which hearing may consist solely of 
the record before the ERO and opportunity for the presentation of 
supporting reasons to affirm, modify, or set aside the penalty), shall 
by order affirm, set aside, reinstate, or modify the penalty, and, if 
appropriate, remand to the ERO for further proceedings. The Commission 
shall implement expedited procedures for such hearings.
    ``(3) On its own motion or upon complaint, the Commission may order 
compliance with a reliability standard and may impose a penalty against 
a user or owner or operator of the bulk-power system if the Commission 
finds, after notice and opportunity for a hearing, that the user or 
owner or operator of the bulk-power system has engaged or is about to 
engage in any acts or practices that constitute or will constitute a 
violation of a reliability standard.
    ``(4) The Commission shall issue regulations authorizing the ERO to 
enter into an agreement to delegate authority to a regional entity for 
the purpose of proposing reliability standards to the ERO and enforcing 
reliability standards under paragraph (1) if--
        ``(A) the regional entity is governed by--
            ``(i) an independent board;
            ``(ii) a balanced stakeholder board; or
            ``(iii) a combination independent and balanced stakeholder 
        board.
        ``(B) the regional entity otherwise satisfies the provisions of 
    subsection (c)(1) and (2); and
        ``(C) the agreement promotes effective and efficient 
    administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the Commission 
shall rebuttably presume that a proposal for delegation to a regional 
entity organized on an Interconnection-wide basis promotes effective 
and efficient administration of bulk-power system reliability and 
should be approved. Such regulation may provide that the Commission may 
assign the ERO's authority to enforce reliability standards under 
paragraph (1) directly to a regional entity consistent with the 
requirements of this paragraph.
    ``(5) The Commission may take such action as is necessary or 
appropriate against the ERO or a regional entity to ensure compliance 
with a reliability standard or any Commission order affecting the ERO 
or a regional entity.
    ``(6) Any penalty imposed under this section shall bear a 
reasonable relation to the seriousness of the violation and shall take 
into consideration the efforts of such user, owner, or operator to 
remedy the violation in a timely manner.
    ``(f) Changes in Electric Reliability Organization Rules.--The 
Electric Reliability Organization shall file with the Commission for 
approval any proposed rule or proposed rule change, accompanied by an 
explanation of its basis and purpose. The Commission, upon its own 
motion or complaint, may propose a change to the rules of the ERO. A 
proposed rule or proposed rule change shall take effect upon a finding 
by the Commission, after notice and opportunity for comment, that the 
change is just, reasonable, not unduly discriminatory or preferential, 
is in the public interest, and satisfies the requirements of subsection 
(c).
    ``(g) Reliability Reports.--The ERO shall conduct periodic 
assessments of the reliability and adequacy of the bulk-power system in 
North America.
    ``(h) Coordination With Canada and Mexico.--The President is urged 
to negotiate international agreements with the governments of Canada 
and Mexico to provide for effective compliance with reliability 
standards and the effectiveness of the ERO in the United States and 
Canada or Mexico.
    ``(i) Savings Provisions.--(1) The ERO shall have authority to 
develop and enforce compliance with reliability standards for only the 
bulk-power system.
    ``(2) This section does not authorize the ERO or the Commission to 
order the construction of additional generation or transmission 
capacity or to set and enforce compliance with standards for adequacy 
or safety of electric facilities or services.
    ``(3) Nothing in this section shall be construed to preempt any 
authority of any State to take action to ensure the safety, adequacy, 
and reliability of electric service within that State, as long as such 
action is not inconsistent with any reliability standard, except that 
the State of New York may establish rules that result in greater 
reliability within that State, as long as such action does not result 
in lesser reliability outside the State than that provided by the 
reliability standards.
    ``(4) Within 90 days of the application of the Electric Reliability 
Organization or other affected party, and after notice and opportunity 
for comment, the Commission shall issue a final order determining 
whether a State action is inconsistent with a reliability standard, 
taking into consideration any recommendation of the ERO.
    ``(5) The Commission, after consultation with the ERO and the State 
taking action, may stay the effectiveness of any State action, pending 
the Commission's issuance of a final order.
    ``(j) Regional Advisory Bodies.--The Commission shall establish a 
regional advisory body on the petition of at least two-thirds of the 
States within a region that have more than one-half of their electric 
load served within the region. A regional advisory body shall be 
composed of one member from each participating State in the region, 
appointed by the Governor of each State, and may include 
representatives of agencies, States, and provinces outside the United 
States. A regional advisory body may provide advice to the Electric 
Reliability Organization, a regional entity, or the Commission 
regarding the governance of an existing or proposed regional entity 
within the same region, whether a standard proposed to apply within the 
region is just, reasonable, not unduly discriminatory or preferential, 
and in the public interest, whether fees proposed to be assessed within 
the region are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference to the 
advice of any such regional advisory body if that body is organized on 
an Interconnection-wide basis.
    ``(k) Alaska and Hawaii.--The provisions of this section do not 
apply to Alaska or Hawaii.''.
    (b) Status of ERO.--The Electric Reliability Organization certified 
by the Federal Energy Regulatory Commission under section 215(c) of the 
Federal Power Act and any regional entity delegated enforcement 
authority pursuant to section 215(e)(4) of that Act are not 
departments, agencies, or instrumentalities of the United States 
Government.
    (c) Access Approvals by Federal Agencies.--Federal agencies 
responsible for approving access to electric transmission or 
distribution facilities located on lands within the United States 
shall, in accordance with applicable law, expedite any Federal agency 
approvals that are necessary to allow the owners or operators of such 
facilities to comply with any reliability standard, approved by the 
Commission under section 215 of the Federal Power Act, that pertains to 
vegetation management, electric service restoration, or resolution of 
situations that imminently endanger the reliability or safety of the 
facilities.

         Subtitle B--Transmission Infrastructure Modernization

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

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

``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    ``(a) Designation of National Interest Electric Transmission 
Corridors.--(1) Not later than 1 year after the date of enactment of 
this section and every 3 years thereafter, the Secretary of Energy 
(referred to in this section as the `Secretary'), in consultation with 
affected States, shall conduct a study of electric transmission 
congestion.
    ``(2) After considering alternatives and recommendations from 
interested parties (including an opportunity for comment from affected 
States), the Secretary shall issue a report, based on the study, which 
may designate any geographic area experiencing electric energy 
transmission capacity constraints or congestion that adversely affects 
consumers as a national interest electric transmission corridor.
    ``(3) The Secretary shall conduct the study and issue the report in 
consultation with any appropriate regional entity referred to in 
section 215.
    ``(4) In determining whether to designate a national interest 
electric transmission corridor under paragraph (2), the Secretary may 
consider whether--
        ``(A) the economic vitality and development of the corridor, or 
    the end markets served by the corridor, may be constrained by lack 
    of adequate or reasonably priced electricity;
        ``(B)(i) economic growth in the corridor, or the end markets 
    served by the corridor, may be jeopardized by reliance on limited 
    sources of energy; and
        ``(ii) a diversification of supply is warranted;
        ``(C) the energy independence of the United States would be 
    served by the designation;
        ``(D) the designation would be in the interest of national 
    energy policy; and
        ``(E) the designation would enhance national defense and 
    homeland security.
    ``(b) Construction Permit.--Except as provided in subsection (i), 
the Commission may, after notice and an opportunity for hearing, issue 
one or more permits for the construction or modification of electric 
transmission facilities in a national interest electric transmission 
corridor designated by the Secretary under subsection (a) if the 
Commission finds that--
        ``(1)(A) a State in which the transmission facilities are to be 
    constructed or modified does not have authority to--
            ``(i) approve the siting of the facilities; or
            ``(ii) consider the interstate benefits expected to be 
        achieved by the proposed construction or modification of 
        transmission facilities in the State;
        ``(B) the applicant for a permit is a transmitting utility 
    under this Act but does not qualify to apply for a permit or siting 
    approval for the proposed project in a State because the applicant 
    does not serve end-use customers in the State; or
        ``(C) a State commission or other entity that has authority to 
    approve the siting of the facilities has--
            ``(i) withheld approval for more than 1 year after the 
        filing of an application seeking approval pursuant to 
        applicable law or 1 year after the designation of the relevant 
        national interest electric transmission corridor, whichever is 
        later; or
            ``(ii) conditioned its approval in such a manner that the 
        proposed construction or modification will not significantly 
        reduce transmission congestion in interstate commerce or is not 
        economically feasible;
        ``(2) the facilities to be authorized by the permit will be 
    used for the transmission of electric energy in interstate 
    commerce;
        ``(3) the proposed construction or modification is consistent 
    with the public interest;
        ``(4) the proposed construction or modification will 
    significantly reduce transmission congestion in interstate commerce 
    and protects or benefits consumers;
        ``(5) the proposed construction or modification is consistent 
    with sound national energy policy and will enhance energy 
    independence; and
        ``(6) the proposed modification will maximize, to the extent 
    reasonable and economical, the transmission capabilities of 
    existing towers or structures.
    ``(c) Permit Applications.--(1) Permit applications under 
subsection (b) shall be made in writing to the Commission.
    ``(2) The Commission shall issue rules specifying--
        ``(A) the form of the application;
        ``(B) the information to be contained in the application; and
        ``(C) the manner of service of notice of the permit application 
    on interested persons.
    ``(d) Comments.--In any proceeding before the Commission under 
subsection (b), the Commission shall afford each State in which a 
transmission facility covered by the permit is or will be located, each 
affected Federal agency and Indian tribe, private property owners, and 
other interested persons, a reasonable opportunity to present their 
views and recommendations with respect to the need for and impact of a 
facility covered by the permit.
    ``(e) Rights-of-Way.--(1) In the case of a permit under subsection 
(b) for electric transmission facilities to be located on property 
other than property owned by the United States or a State, if the 
permit holder cannot acquire by contract, or is unable to agree with 
the owner of the property to the compensation to be paid for, the 
necessary right-of-way to construct or modify the transmission 
facilities, the permit holder may acquire the right-of-way by the 
exercise of the right of eminent domain in the district court of the 
United States for the district in which the property concerned is 
located, or in the appropriate court of the State in which the property 
is located.
    ``(2) Any right-of-way acquired under paragraph (1) shall be used 
exclusively for the construction or modification of electric 
transmission facilities within a reasonable period of time after the 
acquisition.
    ``(3) The practice and procedure in any action or proceeding under 
this subsection in the district court of the United States shall 
conform as nearly as practicable to the practice and procedure in a 
similar action or proceeding in the courts of the State in which the 
property is located.
    ``(4) Nothing in this subsection shall be construed to authorize 
the use of eminent domain to acquire a right-of-way for any purpose 
other than the construction, modification, operation, or maintenance of 
electric transmission facilities and related facilities. The right-of-
way cannot be used for any other purpose, and the right-of-way shall 
terminate upon the termination of the use for which the right-of-way 
was acquired.
    ``(f) Compensation.--(1) Any right-of-way acquired pursuant to 
subsection (e) shall be considered a taking of private property for 
which just compensation is due.
    ``(2) Just compensation shall be an amount equal to the fair market 
value (including applicable severance damages) of the property taken on 
the date of the exercise of eminent domain authority.
    ``(g) State Law.--Nothing in this section precludes any person from 
constructing or modifying any transmission facility in accordance with 
State law.
    ``(h) Coordination of Federal Authorizations for Transmission 
Facilities.--(1) In this subsection:
        ``(A) The term `Federal authorization' means any authorization 
    required under Federal law in order to site a transmission 
    facility.
        ``(B) The term `Federal authorization' includes such permits, 
    special use authorizations, certifications, opinions, or other 
    approvals as may be required under Federal law in order to site a 
    transmission facility.
    ``(2) The Department of Energy shall act as the lead agency for 
purposes of coordinating all applicable Federal authorizations and 
related environmental reviews of the facility.
    ``(3) To the maximum extent practicable under applicable Federal 
law, the Secretary shall coordinate the Federal authorization and 
review process under this subsection with any Indian tribes, multistate 
entities, and State agencies that are responsible for conducting any 
separate permitting and environmental reviews of the facility, to 
ensure timely and efficient review and permit decisions.
    ``(4)(A) As head of the lead agency, the Secretary, in consultation 
with agencies responsible for Federal authorizations and, as 
appropriate, with Indian tribes, multistate entities, and State 
agencies that are willing to coordinate their own separate permitting 
and environmental reviews with the Federal authorization and 
environmental reviews, shall establish prompt and binding intermediate 
milestones and ultimate deadlines for the review of, and Federal 
authorization decisions relating to, the proposed facility.
    ``(B) The Secretary shall ensure that, once an application has been 
submitted with such data as the Secretary considers necessary, all 
permit decisions and related environmental reviews under all applicable 
Federal laws shall be completed--
        ``(i) within 1 year; or
        ``(ii) if a requirement of another provision of Federal law 
    does not permit compliance with clause (i), as soon thereafter as 
    is practicable.
    ``(C) The Secretary shall provide an expeditious pre-application 
mechanism for prospective applicants to confer with the agencies 
involved to have each such agency determine and communicate to the 
prospective applicant not later than 60 days after the prospective 
applicant submits a request for such information concerning--
        ``(i) the likelihood of approval for a potential facility; and
        ``(ii) key issues of concern to the agencies and public.
    ``(5)(A) As lead agency head, the Secretary, in consultation with 
the affected agencies, shall prepare a single environmental review 
document, which shall be used as the basis for all decisions on the 
proposed project under Federal law.
    ``(B) The Secretary and the heads of other agencies shall 
streamline the review and permitting of transmission within corridors 
designated under section 503 of the Federal Land Policy and Management 
Act (43 U.S.C. 1763) by fully taking into account prior analyses and 
decisions relating to the corridors.
    ``(C) The document shall include consideration by the relevant 
agencies of any applicable criteria or other matters as required under 
applicable law.
    ``(6)(A) If any agency has denied a Federal authorization required 
for a transmission facility, or has failed to act by the deadline 
established by the Secretary pursuant to this section for deciding 
whether to issue the authorization, the applicant or any State in which 
the facility would be located may file an appeal with the President, 
who shall, in consultation with the affected agency, review the denial 
or failure to take action on the pending application.
    ``(B) Based on the overall record and in consultation with the 
affected agency, the President may--
        ``(i) issue the necessary authorization with any appropriate 
    conditions; or
        ``(ii) deny the application.
    ``(C) The President shall issue a decision not later than 90 days 
after the date of the filing of the appeal.
    ``(D) In making a decision under this paragraph, the President 
shall comply with applicable requirements of Federal law, including any 
requirements of--
        ``(i) the National Forest Management Act of 1976 (16 U.S.C. 
    472a et seq.);
        ``(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
    seq.);
        ``(iii) the Federal Water Pollution Control Act (33 U.S.C. 1251 
    et seq.);
        ``(iv) the National Environmental Policy Act of 1969 (42 U.S.C. 
    4321 et seq.); and
        ``(v) the Federal Land Policy and Management Act of 1976 (43 
    U.S.C. 1701 et seq.).
    ``(7)(A) Not later than 18 months after the date of enactment of 
this section, the Secretary shall issue any regulations necessary to 
implement this subsection.
    ``(B)(i) Not later than 1 year after the date of enactment of this 
section, the Secretary and the heads of all Federal agencies with 
authority to issue Federal authorizations shall enter into a memorandum 
of understanding to ensure the timely and coordinated review and 
permitting of electricity transmission facilities.
    ``(ii) Interested Indian tribes, multistate entities, and State 
agencies may enter the memorandum of understanding.
    ``(C) The head of each Federal agency with authority to issue a 
Federal authorization shall designate a senior official responsible 
for, and dedicate sufficient other staff and resources to ensure, full 
implementation of the regulations and memorandum required under this 
paragraph.
    ``(8)(A) Each Federal land use authorization for an electricity 
transmission facility shall be issued--
        ``(i) for a duration, as determined by the Secretary, 
    commensurate with the anticipated use of the facility; and
        ``(ii) with appropriate authority to manage the right-of-way 
    for reliability and environmental protection.
    ``(B) On the expiration of the authorization (including an 
authorization issued before the date of enactment of this section), the 
authorization shall be reviewed for renewal taking fully into account 
reliance on such electricity infrastructure, recognizing the importance 
of the authorization for public health, safety, and economic welfare 
and as a legitimate use of Federal land.
    ``(9) In exercising the responsibilities under this section, the 
Secretary shall consult regularly with--
        ``(A) the Federal Energy Regulatory Commission;
        ``(B) electric reliability organizations (including related 
    regional entities) approved by the Commission; and
        ``(C) Transmission Organizations approved by the Commission.
    ``(i) Interstate Compacts.--(1) The consent of Congress is given 
for three or more contiguous States to enter into an interstate 
compact, subject to approval by Congress, establishing regional 
transmission siting agencies to--
        ``(A) facilitate siting of future electric energy transmission 
    facilities within those States; and
        ``(B) carry out the electric energy transmission siting 
    responsibilities of those States.
    ``(2) The Secretary may provide technical assistance to regional 
transmission siting agencies established under this subsection.
    ``(3) The regional transmission siting agencies shall have the 
authority to review, certify, and permit siting of transmission 
facilities, including facilities in national interest electric 
transmission corridors (other than facilities on property owned by the 
United States).
    ``(4) The Commission shall have no authority to issue a permit for 
the construction or modification of an electric transmission facility 
within a State that is a party to a compact, unless the members of the 
compact are in disagreement and the Secretary makes, after notice and 
an opportunity for a hearing, the finding described in subsection 
(b)(1)(C).
    ``(j) Relationship to Other Laws.--(1) Except as specifically 
provided, nothing in this section affects any requirement of an 
environmental law of the United States, including the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(2) Subsection (h)(6) shall not apply to any unit of the National 
Park System, the National Wildlife Refuge System, the National Wild and 
Scenic Rivers System, the National Trails System, the National 
Wilderness Preservation System, or a National Monument.
    ``(k) ERCOT.--This section shall not apply within the area referred 
to in section 212(k)(2)(A).''.
    (b) Reports to Congress on Corridors and Rights-of-Way on Federal 
Lands.--Not later than 90 days after the date of enactment of this Act, 
the Secretary of the Interior, the Secretary, the Secretary of 
Agriculture, and the Chairman of the Council on Environmental Quality 
shall submit to Congress a joint report identifying--
        (1)(A) all existing designated transmission and distribution 
    corridors on Federal land and the status of work related to 
    proposed transmission and distribution corridor designations under 
    title V of the Federal Land Policy and Management Act of 1976 (43 
    U.S.C. 1761 et seq.);
        (B) the schedule for completing the work;
        (C) any impediments to completing the work; and
        (D) steps that Congress could take to expedite the process;
        (2)(A) the number of pending applications to locate 
    transmission facilities on Federal land;
        (B) key information relating to each such facility;
        (C) how long each application has been pending;
        (D) the schedule for issuing a timely decision as to each 
    facility; and
        (E) progress in incorporating existing and new such rights-of-
    way into relevant land use and resource management plans or the 
    equivalent of those plans; and
        (3)(A) the number of existing transmission and distribution 
    rights-of-way on Federal land that will come up for renewal within 
    the following 5-, 10-, and 15-year periods; and
        (B) a description of how the Secretaries plan to manage the 
    renewals.

SEC. 1222. THIRD-PARTY FINANCE.

    (a) Existing Facilities.--The Secretary, acting through the 
Administrator of the Western Area Power Administration (hereinafter in 
this section referred to as ``WAPA''), or through the Administrator of 
the Southwestern Power Administration (hereinafter in this section 
referred to as ``SWPA''), or both, may design, develop, construct, 
operate, maintain, or own, or participate with other entities in 
designing, developing, constructing, operating, maintaining, or owning, 
an electric power transmission facility and related facilities 
(``Project'') needed to upgrade existing transmission facilities owned 
by SWPA or WAPA if the Secretary, in consultation with the applicable 
Administrator, determines that the proposed Project--
        (1)(A) is located in a national interest electric transmission 
    corridor designated under section 216(a) of the Federal Power Act 
    and will reduce congestion of electric transmission in interstate 
    commerce; or
        (B) is necessary to accommodate an actual or projected increase 
    in demand for electric transmission capacity;
        (2) is consistent with--
            (A) transmission needs identified, in a transmission 
        expansion plan or otherwise, by the appropriate Transmission 
        Organization (as defined in the Federal Power Act), if any, or 
        approved regional reliability organization; and
            (B) efficient and reliable operation of the transmission 
        grid; and
        (3) would be operated in conformance with prudent utility 
    practice.
    (b) New Facilities.--The Secretary, acting through WAPA or SWPA, or 
both, may design, develop, construct, operate, maintain, or own, or 
participate with other entities in designing, developing, constructing, 
operating, maintaining, or owning, a new electric power transmission 
facility and related facilities (``Project'') located within any State 
in which WAPA or SWPA operates if the Secretary, in consultation with 
the applicable Administrator, determines that the proposed Project--
        (1)(A) is located in an area designated under section 216(a) of 
    the Federal Power Act and will reduce congestion of electric 
    transmission in interstate commerce; or
        (B) is necessary to accommodate an actual or projected increase 
    in demand for electric transmission capacity;
        (2) is consistent with--
            (A) transmission needs identified, in a transmission 
        expansion plan or otherwise, by the appropriate Transmission 
        Organization (as defined in the Federal Power Act) if any, or 
        approved regional reliability organization; and
            (B) efficient and reliable operation of the transmission 
        grid;
        (3) will be operated in conformance with prudent utility 
    practice;
        (4) will be operated by, or in conformance with the rules of, 
    the appropriate (A) Transmission Organization, if any, or (B) if 
    such an organization does not exist, regional reliability 
    organization; and
        (5) will not duplicate the functions of existing transmission 
    facilities or proposed facilities which are the subject of ongoing 
    or approved siting and related permitting proceedings.
    (c) Other Funds.--
        (1) In general.--In carrying out a Project under subsection (a) 
    or (b), the Secretary may accept and use funds contributed by 
    another entity for the purpose of carrying out the Project.
        (2) Availability.--The contributed funds shall be available for 
    expenditure for the purpose of carrying out the Project--
            (A) without fiscal year limitation; and
            (B) as if the funds had been appropriated specifically for 
        that Project.
        (3) Allocation of costs.--In carrying out a Project under 
    subsection (a) or (b), any costs of the Project not paid for by 
    contributions from another entity shall be collected through rates 
    charged to customers using the new transmission capability provided 
    by the Project and allocated equitably among these project 
    beneficiaries using the new transmission capability.
    (d) Relationship to Other Laws.--Nothing in this section affects 
any requirement of--
        (1) any Federal environmental law, including the National 
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
        (2) any Federal or State law relating to the siting of energy 
    facilities; or
        (3) any existing authorizing statutes.
    (e) Savings Clause.--Nothing in this section shall constrain or 
restrict an Administrator in the utilization of other authority 
delegated to the Administrator of WAPA or SWPA.
    (f) Secretarial Determinations.--Any determination made pursuant to 
subsections (a) or (b) shall be based on findings by the Secretary 
using the best available data.
    (g) Maximum Funding Amount.--The Secretary shall not accept and use 
more than $100,000,000 under subsection (c)(1) for the period 
encompassing fiscal years 2006 through 2015.

SEC. 1223. ADVANCED TRANSMISSION TECHNOLOGIES.

    (a) Definition of Advanced Transmission Technology.--In this 
section, the term ``advanced transmission technology'' means a 
technology that increases the capacity, efficiency, or reliability of 
an existing or new transmission facility, including--
        (1) high-temperature lines (including superconducting cables);
        (2) underground cables;
        (3) advanced conductor technology (including advanced composite 
    conductors, high-temperature low-sag conductors, and fiber optic 
    temperature sensing conductors);
        (4) high-capacity ceramic electric wire, connectors, and 
    insulators;
        (5) optimized transmission line configurations (including 
    multiple phased transmission lines);
        (6) modular equipment;
        (7) wireless power transmission;
        (8) ultra-high voltage lines;
        (9) high-voltage DC technology;
        (10) flexible AC transmission systems;
        (11) energy storage devices (including pumped hydro, compressed 
    air, superconducting magnetic energy storage, flywheels, and 
    batteries);
        (12) controllable load;
        (13) distributed generation (including PV, fuel cells, and 
    microturbines);
        (14) enhanced power device monitoring;
        (15) direct system state sensors;
        (16) fiber optic technologies;
        (17) power electronics and related software (including real 
    time monitoring and analytical software);
        (18) mobile transformers and mobile substations; and
        (19) any other technologies the Commission considers 
    appropriate.
    (b) Authority.--In carrying out the Federal Power Act (16 U.S.C. 
791a et seq.) and the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2601 et seq.), the Commission shall encourage, as 
appropriate, the deployment of advanced transmission technologies.

SEC. 1224. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

    (a) Program.--The Secretary is authorized to establish an Advanced 
Power System Technology Incentive Program to support the deployment of 
certain advanced power system technologies and to improve and protect 
certain critical governmental, industrial, and commercial processes. 
Funds provided under this section shall be used by the Secretary to 
make incentive payments to eligible owners or operators of advanced 
power system technologies to increase power generation through enhanced 
operational, economic, and environmental performance. Payments under 
this section may only be made upon receipt by the Secretary of an 
incentive payment application establishing an applicant as either--
        (1) a qualifying advanced power system technology facility; or
        (2) a qualifying security and assured power facility.
    (b) Incentives.--Subject to availability of funds, a payment of 1.8 
cents per kilowatt-hour shall be paid to the owner or operator of a 
qualifying advanced power system technology facility under this section 
for electricity generated at such facility. An additional 0.7 cents per 
kilowatt-hour shall be paid to the owner or operator of a qualifying 
security and assured power facility for electricity generated at such 
facility. Any facility qualifying under this section shall be eligible 
for an incentive payment for up to, but not more than, the first 
10,000,000 kilowatt-hours produced in any fiscal year.
    (c) Eligibility.--For purposes of this section:
        (1) Qualifying advanced power system technology facility.--The 
    term ``qualifying advanced power system technology facility'' means 
    a facility using an advanced fuel cell, turbine, or hybrid power 
    system or power storage system to generate or store electric 
    energy.
        (2) Qualifying security and assured power facility.--The term 
    ``qualifying security and assured power facility'' means a 
    qualifying advanced power system technology facility determined by 
    the Secretary, in consultation with the Secretary of Homeland 
    Security, to be in critical need of secure, reliable, rapidly 
    available, high-quality power for critical governmental, 
    industrial, or commercial applications.
    (d) Authorization.--There are authorized to be appropriated to the 
Secretary for the purposes of this section, $10,000,000 for each of the 
fiscal years 2006 through 2012.

            Subtitle C--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

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

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES.

    ``(a) Definition of Unregulated Transmitting Utility.--In this 
section, the term `unregulated transmitting utility' means an entity 
that--
        ``(1) owns or operates facilities used for the transmission of 
    electric energy in interstate commerce; and
        ``(2) is an entity described in section 201(f).
    ``(b) Transmission Operation Services.--Subject to section 212(h), 
the Commission may, by rule or order, require an unregulated 
transmitting utility to provide transmission services--
        ``(1) at rates that are comparable to those that the 
    unregulated transmitting utility charges itself; and
        ``(2) on terms and conditions (not relating to rates) that are 
    comparable to those under which the unregulated transmitting 
    utility provides transmission services to itself and that are not 
    unduly discriminatory or preferential.
    ``(c) Exemption.--The Commission shall exempt from any rule or 
order under this section any unregulated transmitting utility that--
        ``(1) sells not more than 4,000,000 megawatt hours of 
    electricity per year;
        ``(2) does not own or operate any transmission facilities that 
    are necessary for operating an interconnected transmission system 
    (or any portion of the system); or
        ``(3) meets other criteria the Commission determines to be in 
    the public interest.
    ``(d) Local Distribution Facilities.--The requirements of 
subsection (b) shall not apply to facilities used in local 
distribution.
    ``(e) Exemption Termination.--If the Commission, after an 
evidentiary hearing held on a complaint and after giving consideration 
to reliability standards established under section 215, finds on the 
basis of a preponderance of the evidence that any exemption granted 
pursuant to subsection (c) unreasonably impairs the continued 
reliability of an interconnected transmission system, the Commission 
shall revoke the exemption granted to the transmitting utility.
    ``(f) Application to Unregulated Transmitting Utilities.--The rate 
changing procedures applicable to public utilities under subsections 
(c) and (d) of section 205 are applicable to unregulated transmitting 
utilities for purposes of this section.
    ``(g) Remand.--In exercising authority under subsection (b)(1), the 
Commission may remand transmission rates to an unregulated transmitting 
utility for review and revision if necessary to meet the requirements 
of subsection (b).
    ``(h) Other Requests.--The provision of transmission services under 
subsection (b) does not preclude a request for transmission services 
under section 211.
    ``(i) Limitation.--The Commission may not require a State or 
municipality to take action under this section that would violate a 
private activity bond rule for purposes of section 141 of the Internal 
Revenue Code of 1986.
    ``(j) Transfer of Control of Transmitting Facilities.--Nothing in 
this section authorizes the Commission to require an unregulated 
transmitting utility to transfer control or operational control of its 
transmitting facilities to a Transmission Organization that is 
designated to provide nondiscriminatory transmission access.''.

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN TRANSMISSION ORGANIZATIONS.

    (a) Definitions.--In this section:
        (1) Appropriate federal regulatory authority.--The term 
    ``appropriate Federal regulatory authority'' means--
            (A) in the case of a Federal power marketing agency, the 
        Secretary, except that the Secretary may designate the 
        Administrator of a Federal power marketing agency to act as the 
        appropriate Federal regulatory authority with respect to the 
        transmission system of the Federal power marketing agency; and
            (B) in the case of the Tennessee Valley Authority, the 
        Board of Directors of the Tennessee Valley Authority.
        (2) Federal power marketing agency.--The term ``Federal power 
    marketing agency'' has the meaning given the term in section 3 of 
    the Federal Power Act (16 U.S.C. 796).
        (3) Federal utility.--The term ``Federal utility'' means--
            (A) a Federal power marketing agency; or
            (B) the Tennessee Valley Authority.
        (4) Transmission organization.--The term ``Transmission 
    Organization'' has the meaning given the term in section 3 of the 
    Federal Power Act (16 U.S.C. 796).
        (5) Transmission system.--The term ``transmission system'' 
    means an electric transmission facility owned, leased, or 
    contracted for by the United States and operated by a Federal 
    utility.
    (b) Transfer.--The appropriate Federal regulatory authority may 
enter into a contract, agreement, or other arrangement transferring 
control and use of all or part of the transmission system of a Federal 
utility to a Transmission Organization.
    (c) Contents.--The contract, agreement, or arrangement shall 
include--
        (1) performance standards for operation and use of the 
    transmission system that the head of the Federal utility determines 
    are necessary or appropriate, including standards that ensure--
            (A) recovery of all of the costs and expenses of the 
        Federal utility related to the transmission facilities that are 
        the subject of the contract, agreement, or other arrangement;
            (B) consistency with existing contracts and third-party 
        financing arrangements; and
            (C) consistency with the statutory authorities, 
        obligations, and limitations of the Federal utility;
        (2) provisions for monitoring and oversight by the Federal 
    utility of the Transmission Organization's terms and conditions of 
    the contract, agreement, or other arrangement, including a 
    provision for the resolution of disputes through arbitration or 
    other means with the Transmission Organization or with other 
    participants, notwithstanding the obligations and limitations of 
    any other law regarding arbitration; and
        (3) a provision that allows the Federal utility to withdraw 
    from the Transmission Organization and terminate the contract, 
    agreement, or other arrangement in accordance with its terms.
    (d) Commission.--Neither this section, actions taken pursuant to 
this section, nor any other transaction of a Federal utility 
participating in a Transmission Organization shall confer on the 
Commission jurisdiction or authority over--
        (1) the electric generation assets, electric capacity, or 
    energy of the Federal utility that the Federal utility is 
    authorized by law to market; or
        (2) the power sales activities of the Federal utility.
    (e) Existing Statutory and Other Obligations.--
        (1) System operation requirements.--No statutory provision 
    requiring or authorizing a Federal utility to transmit electric 
    power or to construct, operate, or maintain the transmission system 
    of the Federal utility prohibits a transfer of control and use of 
    the transmission system pursuant to, and subject to, the 
    requirements of this section.
        (2) Other obligations.--This subsection does not--
            (A) suspend, or exempt any Federal utility from, any 
        provision of Federal law in effect on the date of enactment of 
        this Act, including any requirement or direction relating to 
        the use of the transmission system of the Federal utility, 
        environmental protection, fish and wildlife protection, flood 
        control, navigation, water delivery, or recreation; or
            (B) authorize abrogation of any contract or treaty 
        obligation.
        (3) Conforming amendment.--Section 311 of the Energy and Water 
    Development Appropriations Act, 2001 (16 U.S.C. 824n) is repealed.

SEC. 1233. NATIVE LOAD SERVICE OBLIGATION.

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

``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

    ``(a) Definitions.--In this section:
        ``(1) The term `distribution utility' means an electric utility 
    that has a service obligation to end-users or to a State utility or 
    electric cooperative that, directly or indirectly, through one or 
    more additional State utilities or electric cooperatives, provides 
    electric service to end-users.
        ``(2) The term `load-serving entity' means a distribution 
    utility or an electric utility that has a service obligation.
        ``(3) The term `service obligation' means a requirement 
    applicable to, or the exercise of authority granted to, an electric 
    utility under Federal, State, or local law or under long-term 
    contracts to provide electric service to end-users or to a 
    distribution utility.
        ``(4) The term `State utility' means a State or any political 
    subdivision of a State, or any agency, authority, or 
    instrumentality of any one or more of the foregoing, or a 
    corporation that is wholly owned, directly or indirectly, by any 
    one or more of the foregoing, competent to carry on the business of 
    developing, transmitting, utilizing, or distributing power.
    ``(b) Meeting Service Obligations.--(1) Paragraph (2) applies to 
any load-serving entity that, as of the date of enactment of this 
section--
        ``(A) owns generation facilities, markets the output of Federal 
    generation facilities, or holds rights under one or more wholesale 
    contracts to purchase electric energy, for the purpose of meeting a 
    service obligation; and
        ``(B) by reason of ownership of transmission facilities, or one 
    or more contracts or service agreements for firm transmission 
    service, holds firm transmission rights for delivery of the output 
    of the generation facilities or the purchased energy to meet the 
    service obligation.
    ``(2) Any load-serving entity described in paragraph (1) is 
entitled to use the firm transmission rights, or, equivalent tradable 
or financial transmission rights, in order to deliver the output or 
purchased energy, or the output of other generating facilities or 
purchased energy to the extent deliverable using the rights, to the 
extent required to meet the service obligation of the load-serving 
entity.
    ``(3)(A) To the extent that all or a portion of the service 
obligation covered by the firm transmission rights or equivalent 
tradable or financial transmission rights is transferred to another 
load-serving entity, the successor load-serving entity shall be 
entitled to use the firm transmission rights or equivalent tradable or 
financial transmission rights associated with the transferred service 
obligation.
    ``(B) Subsequent transfers to another load-serving entity, or back 
to the original load-serving entity, shall be entitled to the same 
rights.
    ``(4) The Commission shall exercise the authority of the Commission 
under this Act in a manner that facilitates the planning and expansion 
of transmission facilities to meet the reasonable needs of load-serving 
entities to satisfy the service obligations of the load-serving 
entities, and enables load-serving entities to secure firm transmission 
rights (or equivalent tradable or financial rights) on a long-term 
basis for long-term power supply arrangements made, or planned, to meet 
such needs.
    ``(c) Allocation of Transmission Rights.--Nothing in subsections 
(b)(1), (b)(2), and (b)(3) of this section shall affect any existing or 
future methodology employed by a Transmission Organization for 
allocating or auctioning transmission rights if such Transmission 
Organization was authorized by the Commission to allocate or auction 
financial transmission rights on its system as of January 1, 2005, and 
the Commission determines that any future allocation or auction is 
just, reasonable and not unduly discriminatory or preferential, 
provided, however, that if such a Transmission Organization never 
allocated financial transmission rights on its system that pertained to 
a period before January 1, 2005, with respect to any application by 
such Transmission Organization that would change its methodology the 
Commission shall exercise its authority in a manner consistent with the 
Act and that takes into account the policies expressed in subsections 
(b)(1), (b)(2), and (b)(3) as applied to firm transmission rights held 
by a load-serving entity as of January 1, 2005, to the extent the 
associated generation ownership or power purchase arrangements remain 
in effect.
    ``(d) Certain Transmission Rights.--The Commission may exercise 
authority under this Act to make transmission rights not used to meet 
an obligation covered by subsection (b) available to other entities in 
a manner determined by the Commission to be just, reasonable, and not 
unduly discriminatory or preferential.
    ``(e) Obligation to Build.--Nothing in this Act relieves a load-
serving entity from any obligation under State or local law to build 
transmission or distribution facilities adequate to meet the service 
obligations of the load-serving entity.
    ``(f) Contracts.--Nothing in this section shall provide a basis for 
abrogating any contract or service agreement for firm transmission 
service or rights in effect as of the date of the enactment of this 
subsection. If an ISO in the Western Interconnection had allocated 
financial transmission rights prior to the date of enactment of this 
section but had not done so with respect to one or more load-serving 
entities' firm transmission rights held under contracts to which the 
preceding sentence applies (or held by reason of ownership or future 
ownership of transmission facilities), such load-serving entities may 
not be required, without their consent, to convert such firm 
transmission rights to tradable or financial rights, except where the 
load-serving entity has voluntarily joined the ISO as a participating 
transmission owner (or its successor) in accordance with the ISO 
tariff.
    ``(g) Water Pumping Facilities.--The Commission shall ensure that 
any entity described in section 201(f) that owns transmission 
facilities used predominately to support its own water pumping 
facilities shall have, with respect to the facilities, protections for 
transmission service comparable to those provided to load-serving 
entities pursuant to this section.
    ``(h) ERCOT.--This section shall not apply within the area referred 
to in section 212(k)(2)(A).
    ``(i) Jurisdiction.--This section does not authorize the Commission 
to take any action not otherwise within the jurisdiction of the 
Commission.
    ``(j) TVA Area.--(1) Subject to paragraphs (2) and (3), for 
purposes of subsection (b)(1)(B), a load-serving entity that is located 
within the service area of the Tennessee Valley Authority and that has 
a firm wholesale power supply contract with the Tennessee Valley 
Authority shall be considered to hold firm transmission rights for the 
transmission of the power provided.
    ``(2) Nothing in this subsection affects the requirements of 
section 212(j).
    ``(3) The Commission shall not issue an order on the basis of this 
subsection that is contrary to the purposes of section 212(j).
    ``(k) Effect of Exercising Rights.--An entity that to the extent 
required to meet its service obligations exercises rights described in 
subsection (b) shall not be considered by such action as engaging in 
undue discrimination or preference under this Act.''.
    (b) FERC Rulemaking on Long-Term Transmission Rights in Organized 
Markets.--Within 1 year after the date of enactment of this section and 
after notice and an opportunity for comment, the Commission shall by 
rule or order, implement section 217(b)(4) of the Federal Power Act in 
Transmission Organizations, as defined by that Act with organized 
electricity markets.

SEC. 1234. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary, in coordination and consultation with 
the States, shall conduct a study on--
        (1) the procedures currently used by electric utilities to 
    perform economic dispatch;
        (2) identifying possible revisions to those procedures to 
    improve the ability of nonutility generation resources to offer 
    their output for sale for the purpose of inclusion in economic 
    dispatch; and
        (3) the potential benefits to residential, commercial, and 
    industrial electricity consumers nationally and in each State if 
    economic dispatch procedures were revised to improve the ability of 
    nonutility generation resources to offer their output for inclusion 
    in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used in this 
section means the operation of generation facilities to produce energy 
at the lowest cost to reliably serve consumers, recognizing any 
operational limits of generation and transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 days 
after the date of enactment of this Act, and on a yearly basis 
following, the Secretary shall submit a report to Congress and the 
States on the results of the study conducted under subsection (a), 
including recommendations to Congress and the States for any suggested 
legislative or regulatory changes.

SEC. 1235. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC 
              NORTHWEST.

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

``SEC. 218. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC 
              NORTHWEST.

    ``(a) Definition of Electric Utility or Person.--In this section, 
the term `electric utility or person' means an electric utility or 
person that--
        ``(1) as of the date of enactment of the Energy Policy Act of 
    2005 holds firm transmission rights pursuant to contract or by 
    reason of ownership of transmission facilities; and
        ``(2) is located--
            ``(A) in the Pacific Northwest, as that region is defined 
        in section 3 of the Pacific Northwest Electric Power Planning 
        and Conservation Act (16 U.S.C. 839a); or
            ``(B) in that portion of a State included in the geographic 
        area proposed for a regional transmission organization in 
        Commission Docket Number RT01-35 on the date on which that 
        docket was opened.
    ``(b) Protection of Transmission Contracts.--Nothing in this Act 
confers on the Commission the authority to require an electric utility 
or person to convert to tradable or financial rights--
        ``(1) firm transmission rights described in subsection (a); or
        ``(2) firm transmission rights obtained by exercising contract 
    or tariff rights associated with the firm transmission rights 
    described in subsection (a).''.

SEC. 1236. SENSE OF CONGRESS REGARDING LOCATIONAL INSTALLED CAPACITY 
              MECHANISM.

    (a) Findings.--Congress finds that--
        (1) in regard to a proposal to develop and implement a specific 
    type of locational installed capacity mechanism in New England 
    pending before the Federal Energy Regulatory Commission; and
        (2) the Governors of the States have objected to the proposed 
    mechanism, arguing that the mechanism--
            (A) would not provide adequate assurance that necessary 
        electric generation capacity or reliability will be provided; 
        and
            (B) would impose a high cost on consumers and have a 
        significant negative economic impact.
    (b) Sense of Congress.--Congress--
        (1) notes the concerns of the New England States to the 
    proposed mechanism; and
        (2) declares that it is the sense of Congress that the Federal 
    Energy Regulatory Commission should carefully consider the States' 
    objections.

                  Subtitle D--Transmission Rate Reform

SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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

``SEC. 219. TRANSMISSION INFRASTRUCTURE INVESTMENT.

    ``(a) Rulemaking Requirement.--Not later than 1 year after the date 
of enactment of this section, the Commission shall establish, by rule, 
incentive-based (including performance-based) rate treatments for the 
transmission of electric energy in interstate commerce by public 
utilities for the purpose of benefitting consumers by ensuring 
reliability and reducing the cost of delivered power by reducing 
transmission congestion.
    ``(b) Contents.--The rule shall--
        ``(1) promote reliable and economically efficient transmission 
    and generation of electricity by promoting capital investment in 
    the enlargement, improvement, maintenance, and operation of all 
    facilities for the transmission of electric energy in interstate 
    commerce, regardless of the ownership of the facilities;
        ``(2) provide a return on equity that attracts new investment 
    in transmission facilities (including related transmission 
    technologies);
        ``(3) encourage deployment of transmission technologies and 
    other measures to increase the capacity and efficiency of existing 
    transmission facilities and improve the operation of the 
    facilities; and
        ``(4) allow recovery of--
            ``(A) all prudently incurred costs necessary to comply with 
        mandatory reliability standards issued pursuant to section 215; 
        and
            ``(B) all prudently incurred costs related to transmission 
        infrastructure development pursuant to section 216.
    ``(c) Incentives.--In the rule issued under this section, the 
Commission shall, to the extent within its jurisdiction, provide for 
incentives to each transmitting utility or electric utility that joins 
a Transmission Organization. The Commission shall ensure that any costs 
recoverable pursuant to this subsection may be recovered by such 
utility through the transmission rates charged by such utility or 
through the transmission rates charged by the Transmission Organization 
that provides transmission service to such utility.
    ``(d) Just and Reasonable Rates.--All rates approved under the 
rules adopted pursuant to this section, including any revisions to the 
rules, are subject to the requirements of sections 205 and 206 that all 
rates, charges, terms, and conditions be just and reasonable and not 
unduly discriminatory or preferential.''.

SEC. 1242. FUNDING NEW INTERCONNECTION AND TRANSMISSION UPGRADES.

    The Commission may approve a participant funding plan that 
allocates costs related to transmission upgrades or new generator 
interconnection, without regard to whether an applicant is a member of 
a Commission-approved Transmission Organization, if the plan results in 
rates that--
        (1) are just and reasonable;
        (2) are not unduly discriminatory or preferential; and
        (3) are otherwise consistent with sections 205 and 206 of the 
    Federal Power Act (16 U.S.C. 824d, 824e).

                    Subtitle E--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

    (a) Adoption of Standards.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
        ``(11) Net metering.--Each electric utility shall make 
    available upon request net metering service to any electric 
    consumer that the electric utility serves. For purposes of this 
    paragraph, the term `net metering service' means service to an 
    electric consumer under which electric energy generated by that 
    electric consumer from an eligible on-site generating facility and 
    delivered to the local distribution facilities may be used to 
    offset electric energy provided by the electric utility to the 
    electric consumer during the applicable billing period.
        ``(12) Fuel sources.--Each electric utility shall develop a 
    plan to minimize dependence on 1 fuel source and to ensure that the 
    electric energy it sells to consumers is generated using a diverse 
    range of fuels and technologies, including renewable technologies.
        ``(13) Fossil fuel generation efficiency.--Each electric 
    utility shall develop and implement a 10-year plan to increase the 
    efficiency of its fossil fuel generation.''.
    (b) Compliance.--
        (1) Time limitations.--Section 112(b) of the Public Utility 
    Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by 
    adding at the end the following:
    ``(3)(A) Not later than 2 years after the enactment of this 
paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) and each 
nonregulated electric utility shall commence the consideration referred 
to in section 111, or set a hearing date for such consideration, with 
respect to each standard established by paragraphs (11) through (13) of 
section 111(d).
    ``(B) Not later than 3 years after the date of the enactment of 
this paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the consideration, and 
shall make the determination, referred to in section 111 with respect 
to each standard established by paragraphs (11) through (13) of section 
111(d).''.
        (2) Failure to comply.--Section 112(c) of the Public Utility 
    Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by 
    adding at the end the following: ``In the case of each standard 
    established by paragraphs (11) through (13) of section 111(d), the 
    reference contained in this subsection to the date of enactment of 
    this Act shall be deemed to be a reference to the date of enactment 
    of such paragraphs (11) through (13).''.
        (3) Prior state actions.--
            (A) In general.--Section 112 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by 
        adding at the end the following:
    ``(d) Prior State Actions.--Subsections (b) and (c) of this section 
shall not apply to the standards established by paragraphs (11) through 
(13) of section 111(d) in the case of any electric utility in a State 
if, before the enactment of this subsection--
        ``(1) the State has implemented for such utility the standard 
    concerned (or a comparable standard);
        ``(2) the State regulatory authority for such State or relevant 
    nonregulated electric utility has conducted a proceeding to 
    consider implementation of the standard concerned (or a comparable 
    standard) for such utility; or
        ``(3) the State legislature has voted on the implementation of 
    such standard (or a comparable standard) for such utility.''.
            (B) Cross reference.--Section 124 of such Act (16 U.S.C. 
        2634) is amended by adding the following at the end thereof: 
        ``In the case of each standard established by paragraphs (11) 
        through (13) of section 111(d), the reference contained in this 
        subsection to the date of enactment of this Act shall be deemed 
        to be a reference to the date of enactment of such paragraphs 
        (11) through (13).''.

SEC. 1252. SMART METERING.

    (a) In General.--Section 111(d) of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following:
        ``(14) Time-based metering and communications.--(A) Not later 
    than 18 months after the date of enactment of this paragraph, each 
    electric utility shall offer each of its customer classes, and 
    provide individual customers upon customer request, a time-based 
    rate schedule under which the rate charged by the electric utility 
    varies during different time periods and reflects the variance, if 
    any, in the utility's costs of generating and purchasing 
    electricity at the wholesale level. The time-based rate schedule 
    shall enable the electric consumer to manage energy use and cost 
    through advanced metering and communications technology.
        ``(B) The types of time-based rate schedules that may be 
    offered under the schedule referred to in subparagraph (A) include, 
    among others--
            ``(i) time-of-use pricing whereby electricity prices are 
        set for a specific time period on an advance or forward basis, 
        typically not changing more often than twice a year, based on 
        the utility's cost of generating and/or purchasing such 
        electricity at the wholesale level for the benefit of the 
        consumer. Prices paid for energy consumed during these periods 
        shall be pre-established and known to consumers in advance of 
        such consumption, allowing them to vary their demand and usage 
        in response to such prices and manage their energy costs by 
        shifting usage to a lower cost period or reducing their 
        consumption overall;
            ``(ii) critical peak pricing whereby time-of-use prices are 
        in effect except for certain peak days, when prices may reflect 
        the costs of generating and/or purchasing electricity at the 
        wholesale level and when consumers may receive additional 
        discounts for reducing peak period energy consumption;
            ``(iii) real-time pricing whereby electricity prices are 
        set for a specific time period on an advanced or forward basis, 
        reflecting the utility's cost of generating and/or purchasing 
        electricity at the wholesale level, and may change as often as 
        hourly; and
            ``(iv) credits for consumers with large loads who enter 
        into pre-established peak load reduction agreements that reduce 
        a utility's planned capacity obligations.
        ``(C) Each electric utility subject to subparagraph (A) shall 
    provide each customer requesting a time-based rate with a time-
    based meter capable of enabling the utility and customer to offer 
    and receive such rate, respectively.
        ``(D) For purposes of implementing this paragraph, any 
    reference contained in this section to the date of enactment of the 
    Public Utility Regulatory Policies Act of 1978 shall be deemed to 
    be a reference to the date of enactment of this paragraph.
        ``(E) In a State that permits third-party marketers to sell 
    electric energy to retail electric consumers, such consumers shall 
    be entitled to receive the same time-based metering and 
    communications device and service as a retail electric consumer of 
    the electric utility.
        ``(F) Notwithstanding subsections (b) and (c) of section 112, 
    each State regulatory authority shall, not later than 18 months 
    after the date of enactment of this paragraph conduct an 
    investigation in accordance with section 115(i) and issue a 
    decision whether it is appropriate to implement the standards set 
    out in subparagraphs (A) and (C).''.
    (b) State Investigation of Demand Response and Time-Based 
Metering.--Section 115 of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2625) is amended as follows:
        (1) By inserting in subsection (b) after the phrase ``the 
    standard for time-of-day rates established by section 111(d)(3)'' 
    the following: ``and the standard for time-based metering and 
    communications established by section 111(d)(14)''.
        (2) By inserting in subsection (b) after the phrase ``are 
    likely to exceed the metering'' the following: ``and 
    communications''.
        (3) By adding at the end the following:
    ``(i) Time-Based Metering and Communications.--In making a 
determination with respect to the standard established by section 
111(d)(14), the investigation requirement of section 111(d)(14)(F) 
shall be as follows: Each State regulatory authority shall conduct an 
investigation and issue a decision whether or not it is appropriate for 
electric utilities to provide and install time-based meters and 
communications devices for each of their customers which enable such 
customers to participate in time-based pricing rate schedules and other 
demand response programs.''.
    (c) Federal Assistance on Demand Response.--Section 132(a) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642(a)) is 
amended by striking ``and'' at the end of paragraph (3), striking the 
period at the end of paragraph (4) and inserting ``; and'', and by 
adding the following at the end thereof:
        ``(5) technologies, techniques, and rate-making methods related 
    to advanced metering and communications and the use of these 
    technologies, techniques and methods in demand response 
    programs.''.
    (d) Federal Guidance.--Section 132 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2642) is amended by adding the 
following at the end thereof:
    ``(d) Demand Response.--The Secretary shall be responsible for--
        ``(1) educating consumers on the availability, advantages, and 
    benefits of advanced metering and communications technologies, 
    including the funding of demonstration or pilot projects;
        ``(2) working with States, utilities, other energy providers 
    and advanced metering and communications experts to identify and 
    address barriers to the adoption of demand response programs; and
        ``(3) not later than 180 days after the date of enactment of 
    the Energy Policy Act of 2005, providing Congress with a report 
    that identifies and quantifies the national benefits of demand 
    response and makes a recommendation on achieving specific levels of 
    such benefits by January 1, 2007.''.
    (e) Demand Response and Regional Coordination.--
        (1) In general.--It is the policy of the United States to 
    encourage States to coordinate, on a regional basis, State energy 
    policies to provide reliable and affordable demand response 
    services to the public.
        (2) Technical assistance.--The Secretary shall provide 
    technical assistance to States and regional organizations formed by 
    two or more States to assist them in--
            (A) identifying the areas with the greatest demand response 
        potential;
            (B) identifying and resolving problems in transmission and 
        distribution networks, including through the use of demand 
        response;
            (C) developing plans and programs to use demand response to 
        respond to peak demand or emergency needs; and
            (D) identifying specific measures consumers can take to 
        participate in these demand response programs.
        (3) Report.--Not later than 1 year after the date of enactment 
    of the Energy Policy Act of 2005, the Commission shall prepare and 
    publish an annual report, by appropriate region, that assesses 
    demand response resources, including those available from all 
    consumer classes, and which identifies and reviews--
            (A) saturation and penetration rate of advanced meters and 
        communications technologies, devices and systems;
            (B) existing demand response programs and time-based rate 
        programs;
            (C) the annual resource contribution of demand resources;
            (D) the potential for demand response as a quantifiable, 
        reliable resource for regional planning purposes;
            (E) steps taken to ensure that, in regional transmission 
        planning and operations, demand resources are provided 
        equitable treatment as a quantifiable, reliable resource 
        relative to the resource obligations of any load-serving 
        entity, transmission provider, or transmitting party; and
            (F) regulatory barriers to improve customer participation 
        in demand response, peak reduction and critical period pricing 
        programs.
    (f) Federal Encouragement of Demand Response Devices.--It is the 
policy of the United States that time-based pricing and other forms of 
demand response, whereby electricity customers are provided with 
electricity price signals and the ability to benefit by responding to 
them, shall be encouraged, the deployment of such technology and 
devices that enable electricity customers to participate in such 
pricing and demand response systems shall be facilitated, and 
unnecessary barriers to demand response participation in energy, 
capacity and ancillary service markets shall be eliminated. It is 
further the policy of the United States that the benefits of such 
demand response that accrue to those not deploying such technology and 
devices, but who are part of the same regional electricity entity, 
shall be recognized.
    (g) Time Limitations.--Section 112(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by 
adding at the end the following:
        ``(4)(A) Not later than 1 year after the enactment of this 
    paragraph, each State regulatory authority (with respect to each 
    electric utility for which it has ratemaking authority) and each 
    nonregulated electric utility shall commence the consideration 
    referred to in section 111, or set a hearing date for such 
    consideration, with respect to the standard established by 
    paragraph (14) of section 111(d).
        ``(B) Not later than 2 years after the date of the enactment of 
    this paragraph, each State regulatory authority (with respect to 
    each electric utility for which it has ratemaking authority), and 
    each nonregulated electric utility, shall complete the 
    consideration, and shall make the determination, referred to in 
    section 111 with respect to the standard established by paragraph 
    (14) of section 111(d).''.
    (h) Failure to Comply.--Section 112(c) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by 
adding at the end the following:
    ``In the case of the standard established by paragraph (14) of 
section 111(d), the reference contained in this subsection to the date 
of enactment of this Act shall be deemed to be a reference to the date 
of enactment of such paragraph (14).''.
    (i) Prior State Actions Regarding Smart Metering Standards.--
        (1) In general.--Section 112 of the Public Utility Regulatory 
    Policies Act of 1978 (16 U.S.C. 2622) is amended by adding at the 
    end the following:
    ``(e) Prior State Actions.--Subsections (b) and (c) of this section 
shall not apply to the standard established by paragraph (14) of 
section 111(d) in the case of any electric utility in a State if, 
before the enactment of this subsection--
        ``(1) the State has implemented for such utility the standard 
    concerned (or a comparable standard);
        ``(2) the State regulatory authority for such State or relevant 
    nonregulated electric utility has conducted a proceeding to 
    consider implementation of the standard concerned (or a comparable 
    standard) for such utility within the previous 3 years; or
        ``(3) the State legislature has voted on the implementation of 
    such standard (or a comparable standard) for such utility within 
    the previous 3 years.''.
        (2) Cross reference.--Section 124 of such Act (16 U.S.C. 2634) 
    is amended by adding the following at the end thereof: ``In the 
    case of the standard established by paragraph (14) of section 
    111(d), the reference contained in this subsection to the date of 
    enactment of this Act shall be deemed to be a reference to the date 
    of enactment of such paragraph (14).''.

SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
              REQUIREMENTS.

    (a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) is amended by adding at the end the following:
    ``(m) Termination of Mandatory Purchase and Sale Requirements.--
        ``(1) Obligation to purchase.--After the date of enactment of 
    this subsection, no electric utility shall be required to enter 
    into a new contract or obligation to purchase electric energy from 
    a qualifying cogeneration facility or a qualifying small power 
    production facility under this section if the Commission finds that 
    the qualifying cogeneration facility or qualifying small power 
    production facility has nondiscriminatory access to--
            ``(A)(i) independently administered, auction-based day 
        ahead and real time wholesale markets for the sale of electric 
        energy; and (ii) wholesale markets for long-term sales of 
        capacity and electric energy; or
            ``(B)(i) transmission and interconnection services that are 
        provided by a Commission-approved regional transmission entity 
        and administered pursuant to an open access transmission tariff 
        that affords nondiscriminatory treatment to all customers; and 
        (ii) competitive wholesale markets that provide a meaningful 
        opportunity to sell capacity, including long-term and short-
        term sales, and electric energy, including long-term, short-
        term and real-time sales, to buyers other than the utility to 
        which the qualifying facility is interconnected. In determining 
        whether a meaningful opportunity to sell exists, the Commission 
        shall consider, among other factors, evidence of transactions 
        within the relevant market; or
            ``(C) wholesale markets for the sale of capacity and 
        electric energy that are, at a minimum, of comparable 
        competitive quality as markets described in subparagraphs (A) 
        and (B).
        ``(2) Revised purchase and sale obligation for new 
    facilities.--(A) After the date of enactment of this subsection, no 
    electric utility shall be required pursuant to this section to 
    enter into a new contract or obligation to purchase from or sell 
    electric energy to a facility that is not an existing qualifying 
    cogeneration facility unless the facility meets the criteria for 
    qualifying cogeneration facilities established by the Commission 
    pursuant to the rulemaking required by subsection (n).
        ``(B) For the purposes of this paragraph, the term `existing 
    qualifying cogeneration facility' means a facility that--
            ``(i) was a qualifying cogeneration facility on the date of 
        enactment of subsection (m); or
            ``(ii) had filed with the Commission a notice of self-
        certification, self recertification or an application for 
        Commission certification under 18 CFR 292.207 prior to the date 
        on which the Commission issues the final rule required by 
        subsection (n).
        ``(3) Commission review.--Any electric utility may file an 
    application with the Commission for relief from the mandatory 
    purchase obligation pursuant to this subsection on a service 
    territory-wide basis. Such application shall set forth the factual 
    basis upon which relief is requested and describe why the 
    conditions set forth in subparagraph (A), (B), or (C) of paragraph 
    (1) of this subsection have been met. After notice, including 
    sufficient notice to potentially affected qualifying cogeneration 
    facilities and qualifying small power production facilities, and an 
    opportunity for comment, the Commission shall make a final 
    determination within 90 days of such application regarding whether 
    the conditions set forth in subparagraph (A), (B), or (C) of 
    paragraph (1) have been met.
        ``(4) Reinstatement of obligation to purchase.--At any time 
    after the Commission makes a finding under paragraph (3) relieving 
    an electric utility of its obligation to purchase electric energy, 
    a qualifying cogeneration facility, a qualifying small power 
    production facility, a State agency, or any other affected person 
    may apply to the Commission for an order reinstating the electric 
    utility's obligation to purchase electric energy under this 
    section. Such application shall set forth the factual basis upon 
    which the application is based and describe why the conditions set 
    forth in subparagraph (A), (B), or (C) of paragraph (1) of this 
    subsection are no longer met. After notice, including sufficient 
    notice to potentially affected utilities, and opportunity for 
    comment, the Commission shall issue an order within 90 days of such 
    application reinstating the electric utility's obligation to 
    purchase electric energy under this section if the Commission finds 
    that the conditions set forth in subparagraphs (A), (B) or (C) of 
    paragraph (1) which relieved the obligation to purchase, are no 
    longer met.
        ``(5) Obligation to sell.--After the date of enactment of this 
    subsection, no electric utility shall be required to enter into a 
    new contract or obligation to sell electric energy to a qualifying 
    cogeneration facility or a qualifying small power production 
    facility under this section if the Commission finds that--
            ``(A) competing retail electric suppliers are willing and 
        able to sell and deliver electric energy to the qualifying 
        cogeneration facility or qualifying small power production 
        facility; and
            ``(B) the electric utility is not required by State law to 
        sell electric energy in its service territory.
        ``(6) No effect on existing rights and remedies.--Nothing in 
    this subsection affects the rights or remedies of any party under 
    any contract or obligation, in effect or pending approval before 
    the appropriate State regulatory authority or non-regulated 
    electric utility on the date of enactment of this subsection, to 
    purchase electric energy or capacity from or to sell electric 
    energy or capacity to a qualifying cogeneration facility or 
    qualifying small power production facility under this Act 
    (including the right to recover costs of purchasing electric energy 
    or capacity).
        ``(7) Recovery of costs.--(A) The Commission shall issue and 
    enforce such regulations as are necessary to ensure that an 
    electric utility that purchases electric energy or capacity from a 
    qualifying cogeneration facility or qualifying small power 
    production facility in accordance with any legally enforceable 
    obligation entered into or imposed under this section recovers all 
    prudently incurred costs associated with the purchase.
        ``(B) A regulation under subparagraph (A) shall be enforceable 
    in accordance with the provisions of law applicable to enforcement 
    of regulations under the Federal Power Act (16 U.S.C. 791a et 
    seq.).
    ``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not later 
than 180 days after the date of enactment of this section, the 
Commission shall issue a rule revising the criteria in 18 CFR 292.205 
for new qualifying cogeneration facilities seeking to sell electric 
energy pursuant to section 210 of this Act to ensure--
        ``(i) that the thermal energy output of a new qualifying 
    cogeneration facility is used in a productive and beneficial 
    manner;
        ``(ii) the electrical, thermal, and chemical output of the 
    cogeneration facility is used fundamentally for industrial, 
    commercial, or institutional purposes and is not intended 
    fundamentally for sale to an electric utility, taking into account 
    technological, efficiency, economic, and variable thermal energy 
    requirements, as well as State laws applicable to sales of electric 
    energy from a qualifying facility to its host facility; and
        ``(iii) continuing progress in the development of efficient 
    electric energy generating technology.
    ``(B) The rule issued pursuant to paragraph (1)(A) of this 
subsection shall be applicable only to facilities that seek to sell 
electric energy pursuant to section 210 of this Act. For all other 
purposes, except as specifically provided in subsection (m)(2)(A), 
qualifying facility status shall be determined in accordance with the 
rules and regulations of this Act.
    ``(2) Notwithstanding rule revisions under paragraph (1), the 
Commission's criteria for qualifying cogeneration facilities in effect 
prior to the date on which the Commission issues the final rule 
required by paragraph (1) shall continue to apply to any cogeneration 
facility that--
        ``(A) was a qualifying cogeneration facility on the date of 
    enactment of subsection (m), or
        ``(B) had filed with the Commission a notice of self-
    certification, self-recertification or an application for 
    Commission certification under 18 CFR 292.207 prior to the date on 
    which the Commission issues the final rule required by paragraph 
    (1).''.
    (b) Elimination of Ownership Limitations.--
        (1) Qualifying small power production facility.--Section 
    3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is amended 
    to read as follows:
            ``(C) `qualifying small power production facility' means a 
        small power production facility that the Commission determines, 
        by rule, meets such requirements (including requirements 
        respecting fuel use, fuel efficiency, and reliability) as the 
        Commission may, by rule, prescribe;''.
        (2) Qualifying cogeneration facility.--Section 3(18)(B) of the 
    Federal Power Act (16 U.S.C. 796(18)(B)) is amended to read as 
    follows:
            ``(B) `qualifying cogeneration facility' means a 
        cogeneration facility that the Commission determines, by rule, 
        meets such requirements (including requirements respecting 
        minimum size, fuel use, and fuel efficiency) as the Commission 
        may, by rule, prescribe;''.

SEC. 1254. INTERCONNECTION.

    (a) Adoption of Standards.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
        ``(15) Interconnection.--Each electric utility shall make 
    available, upon request, interconnection service to any electric 
    consumer that the electric utility serves. For purposes of this 
    paragraph, the term `interconnection service' means service to an 
    electric consumer under which an on-site generating facility on the 
    consumer's premises shall be connected to the local distribution 
    facilities. Interconnection services shall be offered based upon 
    the standards developed by the Institute of Electrical and 
    Electronics Engineers: IEEE Standard 1547 for Interconnecting 
    Distributed Resources with Electric Power Systems, as they may be 
    amended from time to time. In addition, agreements and procedures 
    shall be established whereby the services are offered shall promote 
    current best practices of interconnection for distributed 
    generation, including but not limited to practices stipulated in 
    model codes adopted by associations of state regulatory agencies. 
    All such agreements and procedures shall be just and reasonable, 
    and not unduly discriminatory or preferential.''.
    (b) Compliance.--
        (1) Time limitations.--Section 112(b) of the Public Utility 
    Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by 
    adding at the end the following:
        ``(5)(A) Not later than 1 year after the enactment of this 
    paragraph, each State regulatory authority (with respect to each 
    electric utility for which it has ratemaking authority) and each 
    nonregulated utility shall commence the consideration referred to 
    in section 111, or set a hearing date for consideration, with 
    respect to the standard established by paragraph (15) of section 
    111(d).
        ``(B) Not later than two years after the date of the enactment 
    of the this paragraph, each State regulatory authority (with 
    respect to each electric utility for which it has ratemaking 
    authority), and each nonregulated electric utility, shall complete 
    the consideration, and shall make the determination, referred to in 
    section 111 with respect to each standard established by paragraph 
    (15) of section 111(d).''.
        (2) Failure to comply.--Section 112(d) of the Public Utility 
    Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by 
    adding at the end the following: ``In the case of the standard 
    established by paragraph (15), the reference contained in this 
    subsection to the date of enactment of this Act shall be deemed to 
    be a reference to the date of enactment of paragraph (15).''.
        (3) Prior state actions.--
            (A) In general.--Section 112 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by 
        adding at the end the following:
    ``(f) Prior State Actions.--Subsections (b) and (c) of this section 
shall not apply to the standard established by paragraph (15) of 
section 111(d) in the case of any electric utility in a State if, 
before the enactment of this subsection--
        ``(1) the State has implemented for such utility the standard 
    concerned (or a comparable standard);
        ``(2) the State regulatory authority for such State or relevant 
    nonregulated electric utility has conducted a proceeding to 
    consider implementation of the standard concerned (or a comparable 
    standard) for such utility; or
        ``(3) the State legislature has voted on the implementation of 
    such standard (or a comparable standard) for such utility.''.
            (B) Cross reference.--Section 124 of such Act (16 U.S.C. 
        2634) is amended by adding the following at the end thereof: 
        ``In the case of each standard established by paragraph (15) of 
        section 111(d), the reference contained in this subsection to 
        the date of enactment of the Act shall be deemed to be a 
        reference to the date of enactment of paragraph (15).''.

                      Subtitle F--Repeal of PUHCA

SEC. 1261. SHORT TITLE.

    This subtitle may be cited as the ``Public Utility Holding Company 
Act of 2005''.

SEC. 1262. DEFINITIONS.

    For purposes of this subtitle:
        (1) Affiliate.--The term ``affiliate'' of a company means any 
    company, 5 percent or more of the outstanding voting securities of 
    which are owned, controlled, or held with power to vote, directly 
    or indirectly, by such company.
        (2) Associate company.--The term ``associate company'' of a 
    company means any company in the same holding company system with 
    such company.
        (3) Commission.--The term ``Commission'' means the Federal 
    Energy Regulatory Commission.
        (4) Company.--The term ``company'' means a corporation, 
    partnership, association, joint stock company, business trust, or 
    any organized group of persons, whether incorporated or not, or a 
    receiver, trustee, or other liquidating agent of any of the 
    foregoing.
        (5) Electric utility company.--The term ``electric utility 
    company'' means any company that owns or operates facilities used 
    for the generation, transmission, or distribution of electric 
    energy for sale.
        (6) Exempt wholesale generator and foreign utility company.--
    The terms ``exempt wholesale generator'' and ``foreign utility 
    company'' have the same meanings as in sections 32 and 33, 
    respectively, of the Public Utility Holding Company Act of 1935 (15 
    U.S.C. 79z-5a, 79z-5b), as those sections existed on the day before 
    the effective date of this subtitle.
        (7) Gas utility company.--The term ``gas utility company'' 
    means any company that owns or operates facilities used for 
    distribution at retail (other than the distribution only in 
    enclosed portable containers or distribution to tenants or 
    employees of the company operating such facilities for their own 
    use and not for resale) of natural or manufactured gas for heat, 
    light, or power.
        (8) Holding company.--
            (A) In general.--The term ``holding company'' means--
                (i) any company that directly or indirectly owns, 
            controls, or holds, with power to vote, 10 percent or more 
            of the outstanding voting securities of a public-utility 
            company or of a holding company of any public-utility 
            company; and
                (ii) any person, determined by the Commission, after 
            notice and opportunity for hearing, to exercise directly or 
            indirectly (either alone or pursuant to an arrangement or 
            understanding with one or more persons) such a controlling 
            influence over the management or policies of any public-
            utility company or holding company as to make it necessary 
            or appropriate for the rate protection of utility customers 
            with respect to rates that such person be subject to the 
            obligations, duties, and liabilities imposed by this 
            subtitle upon holding companies.
            (B) Exclusions.--The term ``holding company'' shall not 
        include--
                (i) a bank, savings association, or trust company, or 
            their operating subsidiaries that own, control, or hold, 
            with the power to vote, public utility or public utility 
            holding company securities so long as the securities are--

                    (I) held as collateral for a loan;
                    (II) held in the ordinary course of business as a 
                fiduciary; or
                    (III) acquired solely for purposes of liquidation 
                and in connection with a loan previously contracted for 
                and owned beneficially for a period of not more than 
                two years; or

                (ii) a broker or dealer that owns, controls, or holds 
            with the power to vote public utility or public utility 
            holding company securities so long as the securities are--

                    (I) not beneficially owned by the broker or dealer 
                and are subject to any voting instructions which may be 
                given by customers or their assigns; or
                    (II) acquired within 12 months in the ordinary 
                course of business as a broker, dealer, or underwriter 
                with the bona fide intention of effecting distribution 
                of the specific securities so acquired.

        (9) Holding company system.--The term ``holding company 
    system'' means a holding company, together with its subsidiary 
    companies.
        (10) Jurisdictional rates.--The term ``jurisdictional rates'' 
    means rates accepted or established by the Commission for the 
    transmission of electric energy in interstate commerce, the sale of 
    electric energy at wholesale in interstate commerce, the 
    transportation of natural gas in interstate commerce, and the sale 
    in interstate commerce of natural gas for resale for ultimate 
    public consumption for domestic, commercial, industrial, or any 
    other use.
        (11) Natural gas company.--The term ``natural gas company'' 
    means a person engaged in the transportation of natural gas in 
    interstate commerce or the sale of such gas in interstate commerce 
    for resale.
        (12) Person.--The term ``person'' means an individual or 
    company.
        (13) Public utility.--The term ``public utility'' means any 
    person who owns or operates facilities used for transmission of 
    electric energy in interstate commerce or sales of electric energy 
    at wholesale in interstate commerce.
        (14) Public-utility company.--The term ``public-utility 
    company'' means an electric utility company or a gas utility 
    company.
        (15) State commission.--The term ``State commission'' means any 
    commission, board, agency, or officer, by whatever name designated, 
    of a State, municipality, or other political subdivision of a State 
    that, under the laws of such State, has jurisdiction to regulate 
    public utility companies.
        (16) Subsidiary company.--The term ``subsidiary company'' of a 
    holding company means--
            (A) any company, 10 percent or more of the outstanding 
        voting securities of which are directly or indirectly owned, 
        controlled, or held with power to vote, by such holding 
        company; and
            (B) any person, the management or policies of which the 
        Commission, after notice and opportunity for hearing, 
        determines to be subject to a controlling influence, directly 
        or indirectly, by such holding company (either alone or 
        pursuant to an arrangement or understanding with one or more 
        other persons) so as to make it necessary for the rate 
        protection of utility customers with respect to rates that such 
        person be subject to the obligations, duties, and liabilities 
        imposed by this subtitle upon subsidiary companies of holding 
        companies.
        (17) Voting security.--The term ``voting security'' means any 
    security presently entitling the owner or holder thereof to vote in 
    the direction or management of the affairs of a company.

SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

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

SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.

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

SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS.

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

SEC. 1266. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective date of 
this subtitle, the Commission shall issue a final rule to exempt from 
the requirements of section 1264 (relating to Federal access to books 
and records) any person that is a holding company, solely with respect 
to one or more--
        (1) qualifying facilities under the Public Utility Regulatory 
    Policies Act of 1978 (16 U.S.C. 2601 et seq.);
        (2) exempt wholesale generators; or
        (3) foreign utility companies.
    (b) Other Authority.--The Commission shall exempt a person or 
transaction from the requirements of section 1264 (relating to Federal 
access to books and records) if, upon application or upon the motion of 
the Commission--
        (1) the Commission finds that the books, accounts, memoranda, 
    and other records of any person are not relevant to the 
    jurisdictional rates of a public utility or natural gas company; or
        (2) the Commission finds that any class of transactions is not 
    relevant to the jurisdictional rates of a public utility or natural 
    gas company.

SEC. 1267. AFFILIATE TRANSACTIONS.

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

SEC. 1268. APPLICABILITY.

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

SEC. 1269. EFFECT ON OTHER REGULATIONS.

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

SEC. 1270. ENFORCEMENT.

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

SEC. 1271. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle, or otherwise in the 
Public Utility Holding Company Act of 1935, or rules, regulations, or 
orders thereunder, prohibits a person from engaging in or continuing to 
engage in activities or transactions in which it is legally engaged or 
authorized to engage on the date of enactment of this Act, if that 
person continues to comply with the terms (other than an expiration 
date or termination date) of any such authorization, whether by rule or 
by order.
    (b) Effect on Other Commission Authority.--Nothing in this subtitle 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a et seq.) or the Natural Gas Act (15 U.S.C. 717 et seq.).
    (c) Tax Treatment.--Tax treatment under section 1081 of the 
Internal Revenue Code of 1986 as a result of transactions ordered in 
compliance with the Public Utility Holding Company Act of 1935 (15 
U.S.C. 79 et seq.) shall not be affected in any manner due to the 
repeal of that Act and the enactment of the Public Utility Holding 
Company Act of 2005.

SEC. 1272. IMPLEMENTATION.

    Not later than 4 months after the date of enactment of this 
subtitle, the Commission shall--
        (1) issue such regulations as may be necessary or appropriate 
    to implement this subtitle (other than section 1265, relating to 
    State access to books and records); and
        (2) submit to Congress detailed recommendations on technical 
    and conforming amendments to Federal law necessary to carry out 
    this subtitle and the amendments made by this subtitle.

SEC. 1273. TRANSFER OF RESOURCES.

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

SEC. 1274. EFFECTIVE DATE.

    (a) In General.--Except for section 1272 (relating to 
implementation), this subtitle shall take effect 6 months after the 
date of enactment of this subtitle.
    (b) Compliance With Certain Rules.--If the Commission approves and 
makes effective any final rulemaking modifying the standards of conduct 
governing entities that own, operate, or control facilities for 
transmission of electricity in interstate commerce or transportation of 
natural gas in interstate commerce prior to the effective date of this 
subtitle, any action taken by a public-utility company or utility 
holding company to comply with the requirements of such rulemaking 
shall not subject such public-utility company or utility holding 
company to any regulatory requirement applicable to a holding company 
under the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et 
seq.).

SEC. 1275. SERVICE ALLOCATION.

    (a) Definition of Public Utility.--In this section, the term 
``public utility'' has the meaning given the term in section 201(e) of 
the Federal Power Act (16 U.S.C. 824(e)).
    (b) FERC Review.--In the case of non-power goods or administrative 
or management services provided by an associate company organized 
specifically for the purpose of providing such goods or services to any 
public utility in the same holding company system, at the election of 
the system or a State commission having jurisdiction over the public 
utility, the Commission, after the effective date of this subtitle, 
shall review and authorize the allocation of the costs for such goods 
or services to the extent relevant to that associate company.
    (c) Effect on Federal and State Law.--Nothing in this section shall 
affect the authority of the Commission or a State commission under 
other applicable law.
    (d) Rules.--Not later than 4 months after the date of enactment of 
this Act, the Commission shall issue rules (which rules shall be 
effective no earlier than the effective date of this subtitle) to 
exempt from the requirements of this section any company in a holding 
company system whose public utility operations are confined 
substantially to a single State and any other class of transactions 
that the Commission finds is not relevant to the jurisdictional rates 
of a public utility.

SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Conflict of Jurisdiction.--Section 318 of the Federal Power Act 
(16 U.S.C. 825q) is repealed.
    (b) Definitions.--(1) Section 201(g)(5) of the Federal Power Act 
(16 U.S.C. 824(g)(5)) is amended by striking ``1935'' and inserting 
``2005''.
    (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is 
amended by striking ``1935'' and inserting ``2005''.

 Subtitle G--Market Transparency, Enforcement, and Consumer Protection

SEC. 1281. ELECTRICITY MARKET TRANSPARENCY.

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

``SEC. 220. ELECTRICITY MARKET TRANSPARENCY RULES.

    ``(a)(1) The Commission is directed to facilitate price 
transparency in markets for the sale and transmission of electric 
energy in interstate commerce, having due regard for the public 
interest, the integrity of those markets, fair competition, and the 
protection of consumers.
    ``(2) The Commission may prescribe such rules as the Commission 
determines necessary and appropriate to carry out the purposes of this 
section. The rules shall provide for the dissemination, on a timely 
basis, of information about the availability and prices of wholesale 
electric energy and transmission service to the Commission, State 
commissions, buyers and sellers of wholesale electric energy, users of 
transmission services, and the public.
    ``(3) The Commission may--
        ``(A) obtain the information described in paragraph (2) from 
    any market participant; and
        ``(B) rely on entities other than the Commission to receive and 
    make public the information, subject to the disclosure rules in 
    subsection (b).
    ``(4) In carrying out this section, the Commission shall consider 
the degree of price transparency provided by existing price publishers 
and providers of trade processing services, and shall rely on such 
publishers and services to the maximum extent possible. The Commission 
may establish an electronic information system if it determines that 
existing price publications are not adequately providing price 
discovery or market transparency. Nothing in this section, however, 
shall affect any electronic information filing requirements in effect 
under this Act as of the date of enactment of this section.
    ``(b)(1) Rules described in subsection (a)(2), if adopted, shall 
exempt from disclosure information the Commission determines would, if 
disclosed, be detrimental to the operation of an effective market or 
jeopardize system security.
    ``(2) In determining the information to be made available under 
this section and time to make the information available, the Commission 
shall seek to ensure that consumers and competitive markets are 
protected from the adverse effects of potential collusion or other 
anticompetitive behaviors that can be facilitated by untimely public 
disclosure of transaction-specific information.
    ``(c)(1) Within 180 days of enactment of this section, the 
Commission shall conclude a memorandum of understanding with the 
Commodity Futures Trading Commission relating to information sharing, 
which shall include, among other things, provisions ensuring that 
information requests to markets within the respective jurisdiction of 
each agency are properly coordinated to minimize duplicative 
information requests, and provisions regarding the treatment of 
proprietary trading information.
    ``(2) Nothing in this section may be construed to limit or affect 
the exclusive jurisdiction of the Commodity Futures Trading Commission 
under the Commodity Exchange Act (7 U.S.C. 1 et seq.).
    ``(d) The Commission shall not require entities who have a de 
minimis market presence to comply with the reporting requirements of 
this section.
    ``(e)(1) Except as provided in paragraph (2), no person shall be 
subject to any civil penalty under this section with respect to any 
violation occurring more than 3 years before the date on which the 
person is provided notice of the proposed penalty under section 316A.
    ``(2) Paragraph (1) shall not apply in any case in which the 
Commission finds that a seller that has entered into a contract for the 
sale of electric energy at wholesale or transmission service subject to 
the jurisdiction of the Commission has engaged in fraudulent market 
manipulation activities materially affecting the contract in violation 
of section 222.
    ``(f) This section shall not apply to a transaction for the 
purchase or sale of wholesale electric energy or transmission services 
within the area described in section 212(k)(2)(A).''.

SEC. 1282. FALSE STATEMENTS.

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

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

    ``No entity (including an entity described in section 201(f)) shall 
willfully and knowingly report any information relating to the price of 
electricity sold at wholesale or the availability of transmission 
capacity, which information the person or any other entity knew to be 
false at the time of the reporting, to a Federal agency with intent to 
fraudulently affect the data being compiled by the Federal agency.''.

SEC. 1283. MARKET MANIPULATION.

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

``SEC. 222. PROHIBITION OF ENERGY MARKET MANIPULATION.

    ``(a) In General.--It shall be unlawful for any entity (including 
an entity described in section 201(f)), directly or indirectly, to use 
or employ, in connection with the purchase or sale of electric energy 
or the purchase or sale of transmission services subject to the 
jurisdiction of the Commission, any manipulative or deceptive device or 
contrivance (as those terms are used in section 10(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78j(b))), in contravention of such 
rules and regulations as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protection of electric 
ratepayers.
    ``(b) No Private Right of Action.--Nothing in this section shall be 
construed to create a private right of action.''.

SEC. 1284. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended--
        (1) by inserting ``electric utility,'' after ``Any person,''; 
    and
        (2) by inserting ``, transmitting utility,'' after ``licensee'' 
    each place it appears.
    (b) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended--
        (1) by inserting ``, electric utility, transmitting utility, or 
    other entity'' after ``person'' each place it appears; and
        (2) in the first sentence, by inserting before the period at 
    the end the following: ``, or in obtaining information about the 
    sale of electric energy at wholesale in interstate commerce and the 
    transmission of electric energy in interstate commerce''.
    (c) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 825l) is amended by inserting ``electric 
utility,'' after ``person,'' in the first 2 places it appears and by 
striking ``any person unless such person'' and inserting ``any entity 
unless such entity''.
    (d) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
        (1) in subsection (a)--
            (A) by striking ``$5,000'' and inserting ``$1,000,000''; 
        and
            (B) by striking ``two years'' and inserting ``5 years'';
        (2) in subsection (b), by striking ``$500'' and inserting 
    ``$25,000''; and
        (3) by striking subsection (c).
    (e) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825o-1) is amended--
        (1) by striking ``section 211, 212, 213, or 214'' each place it 
    appears and inserting ``part II''; and
        (2) in subsection (b), by striking ``$10,000'' and inserting 
    ``$1,000,000''.

SEC. 1285. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended as follows:
        (1) By striking ``the date 60 days after the filing of such 
    complaint nor later than 5 months after the expiration of such 60-
    day period'' in the second sentence and inserting ``the date of the 
    filing of such complaint nor later than 5 months after the filing 
    of such complaint''.
        (2) By striking ``60 days after'' in the third sentence and 
    inserting ``of''.
        (3) By striking ``expiration of such 60-day period'' in the 
    third sentence and inserting ``publication date''.
        (4) By striking the fifth sentence and inserting the following: 
    ``If no final decision is rendered by the conclusion of the 180-day 
    period commencing upon initiation of a proceeding pursuant to this 
    section, the Commission shall state the reasons why it has failed 
    to do so and shall state its best estimate as to when it reasonably 
    expects to make such decision.''.

SEC. 1286. REFUND AUTHORITY.

    Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by 
adding at the end the following:
    ``(e)(1) In this subsection:
        ``(A) The term `short-term sale' means an agreement for the 
    sale of electric energy at wholesale in interstate commerce that is 
    for a period of 31 days or less (excluding monthly contracts 
    subject to automatic renewal).
        ``(B) The term `applicable Commission rule' means a Commission 
    rule applicable to sales at wholesale by public utilities that the 
    Commission determines after notice and comment should also be 
    applicable to entities subject to this subsection.
    ``(2) If an entity described in section 201(f) voluntarily makes a 
short-term sale of electric energy through an organized market in which 
the rates for the sale are established by Commission-approved tariff 
(rather than by contract) and the sale violates the terms of the tariff 
or applicable Commission rules in effect at the time of the sale, the 
entity shall be subject to the refund authority of the Commission under 
this section with respect to the violation.
    ``(3) This section shall not apply to--
        ``(A) any entity that sells in total (including affiliates of 
    the entity) less than 8,000,000 megawatt hours of electricity per 
    year; or
        ``(B) an electric cooperative.
    ``(4)(A) The Commission shall have refund authority under paragraph 
(2) with respect to a voluntary short term sale of electric energy by 
the Bonneville Power Administration only if the sale is at an unjust 
and unreasonable rate.
    ``(B) The Commission may order a refund under subparagraph (A) only 
for short-term sales made by the Bonneville Power Administration at 
rates that are higher than the highest just and reasonable rate charged 
by any other entity for a short-term sale of electric energy in the 
same geographic market for the same, or most nearly comparable, period 
as the sale by the Bonneville Power Administration.
    ``(C) In the case of any Federal power marketing agency or the 
Tennessee Valley Authority, the Commission shall not assert or exercise 
any regulatory authority or power under paragraph (2) other than the 
ordering of refunds to achieve a just and reasonable rate.''.

SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

    (a) Privacy.--The Federal Trade Commission may issue rules 
protecting the privacy of electric consumers from the disclosure of 
consumer information obtained in connection with the sale or delivery 
of electric energy to electric consumers.
    (b) Slamming.--The Federal Trade Commission may issue rules 
prohibiting the change of selection of an electric utility except with 
the informed consent of the electric consumer or if approved by the 
appropriate State regulatory authority.
    (c) Cramming.--The Federal Trade Commission may issue rules 
prohibiting the sale of goods and services to an electric consumer 
unless expressly authorized by law or the electric consumer.
    (d) Rulemaking.--The Federal Trade Commission shall proceed in 
accordance with section 553 of title 5, United States Code, when 
prescribing a rule under this section.
    (e) State Authority.--If the Federal Trade Commission determines 
that a State's regulations provide equivalent or greater protection 
than the provisions of this section, such State regulations shall apply 
in that State in lieu of the regulations issued by the Commission under 
this section.
    (f) Definitions.--For purposes of this section:
        (1) State regulatory authority.--The term ``State regulatory 
    authority'' has the meaning given that term in section 3(21) of the 
    Federal Power Act (16 U.S.C. 796(21)).
        (2) Electric consumer and electric utility.--The terms 
    ``electric consumer'' and ``electric utility'' have the meanings 
    given those terms in section 3 of the Public Utility Regulatory 
    Policies Act of 1978 (16 U.S.C. 2602).

SEC. 1288. AUTHORITY OF COURT TO PROHIBIT INDIVIDUALS FROM SERVING AS 
              OFFICERS, DIRECTORS, AND ENERGY TRADERS.

    Section 314 of the Federal Power Act (16 U.S.C. 825m) is amended by 
adding at the end the following:
    ``(d) In any proceedings under subsection (a), the court may 
prohibit, conditionally or unconditionally, and permanently or for such 
period of time as the court determines, any individual who is engaged 
or has engaged in practices constituting a violation of section 221 
(and related rules and regulations) from--
        ``(1) acting as an officer or director of an electric utility; 
    or
        ``(2) engaging in the business of purchasing or selling--
            ``(A) electric energy; or
            ``(B) transmission services subject to the jurisdiction of 
        the Commission.''.

SEC. 1289. MERGER REVIEW REFORM.

    (a) In General.--Section 203(a) of the Federal Power Act (16 U.S.C. 
824b(a)) is amended to read as follows:
    ``(a)(1) No public utility shall, without first having secured an 
order of the Commission authorizing it to do so--
            ``(A) sell, lease, or otherwise dispose of the whole of its 
        facilities subject to the jurisdiction of the Commission, or 
        any part thereof of a value in excess of $10,000,000;
            ``(B) merge or consolidate, directly or indirectly, such 
        facilities or any part thereof with those of any other person, 
        by any means whatsoever;
            ``(C) purchase, acquire, or take any security with a value 
        in excess of $10,000,000 of any other public utility; or
            ``(D) purchase, lease, or otherwise acquire an existing 
        generation facility--
                ``(i) that has a value in excess of $10,000,000; and
                ``(ii) that is used for interstate wholesale sales and 
            over which the Commission has jurisdiction for ratemaking 
            purposes.
        ``(2) No holding company in a holding company system that 
    includes a transmitting utility or an electric utility shall 
    purchase, acquire, or take any security with a value in excess of 
    $10,000,000 of, or, by any means whatsoever, directly or 
    indirectly, merge or consolidate with, a transmitting utility, an 
    electric utility company, or a holding company in a holding company 
    system that includes a transmitting utility, or an electric utility 
    company, with a value in excess of $10,000,000 without first having 
    secured an order of the Commission authorizing it to do so.
        ``(3) Upon receipt of an application for such approval the 
    Commission shall give reasonable notice in writing to the Governor 
    and State commission of each of the States in which the physical 
    property affected, or any part thereof, is situated, and to such 
    other persons as it may deem advisable.
        ``(4) After notice and opportunity for hearing, the Commission 
    shall approve the proposed disposition, consolidation, acquisition, 
    or change in control, if it finds that the proposed transaction 
    will be consistent with the public interest, and will not result in 
    cross-subsidization of a non-utility associate company or the 
    pledge or encumbrance of utility assets for the benefit of an 
    associate company, unless the Commission determines that the cross-
    subsidization, pledge, or encumbrance will be consistent with the 
    public interest.
        ``(5) The Commission shall, by rule, adopt procedures for the 
    expeditious consideration of applications for the approval of 
    dispositions, consolidations, or acquisitions, under this section. 
    Such rules shall identify classes of transactions, or specify 
    criteria for transactions, that normally meet the standards 
    established in paragraph (4). The Commission shall provide 
    expedited review for such transactions. The Commission shall grant 
    or deny any other application for approval of a transaction not 
    later than 180 days after the application is filed. If the 
    Commission does not act within 180 days, such application shall be 
    deemed granted unless the Commission finds, based on good cause, 
    that further consideration is required to determine whether the 
    proposed transaction meets the standards of paragraph (4) and 
    issues an order tolling the time for acting on the application for 
    not more than 180 days, at the end of which additional period the 
    Commission shall grant or deny the application.
        ``(6) For purposes of this subsection, the terms `associate 
    company', `holding company', and `holding company system' have the 
    meaning given those terms in the Public Utility Holding Company Act 
    of 2005.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect 6 months after the date of enactment of this Act.
    (c) Transition Provision.--The amendments made by subsection (a) 
shall not apply to any application under section 203 of the Federal 
Power Act (16 U.S.C. 824b) that was filed on or before the date of 
enactment of this Act.

SEC. 1290. RELIEF FOR EXTRAORDINARY VIOLATIONS.

    (a) Application.--This section applies to any contract entered into 
the Western Interconnection prior to June 20, 2001, with a seller of 
wholesale electricity that the Commission has--
        (1) found to have manipulated the electricity market resulting 
    in unjust and unreasonable rates; and
        (2) revoked the seller's authority to sell any electricity at 
    market-based rates.
    (b) Relief.--Notwithstanding section 222 of the Federal Power Act 
(as added by section 1262), any provision of title 11, United States 
Code, or any other provision of law, in the case of a contract 
described in subsection (a), the Commission shall have exclusive 
jurisdiction under the Federal Power Act (16 U.S.C. 791a et seq.) to 
determine whether a requirement to make termination payments for power 
not delivered by the seller, or any successor in interest of the 
seller, is not permitted under a rate schedule (or contract under such 
a schedule) or is otherwise unlawful on the grounds that the contract 
is unjust and unreasonable or contrary to the public interest.
    (c) Applicability.--This section applies to any proceeding pending 
on the date of enactment of this section involving a seller described 
in subsection (a) in which there is not a final, nonappealable order by 
the Commission or any other jurisdiction determining the respective 
rights of the seller.

                        Subtitle H--Definitions

SEC. 1291. DEFINITIONS.

    (a) Commission.--In this title, the term ``Commission'' means the 
Federal Energy Regulatory Commission.
    (b) Amendment.--Section 3 of the Federal Power Act (16 U.S.C. 796) 
is amended--
        (1) by striking paragraphs (22) and (23) and inserting the 
    following:
        ``(22) Electric utility.--(A) The term `electric utility' means 
    a person or Federal or State agency (including an entity described 
    in section 201(f)) that sells electric energy.
        ``(B) The term `electric utility' includes the Tennessee Valley 
    Authority and each Federal power marketing administration.
        ``(23) Transmitting utility.--The term `transmitting utility' 
    means an entity (including an entity described in section 201(f)) 
    that owns, operates, or controls facilities used for the 
    transmission of electric energy--
            ``(A) in interstate commerce;
            ``(B) for the sale of electric energy at wholesale.''; and
        (2) by adding at the end the following:
        ``(26) Electric cooperative.--The term `electric cooperative' 
    means a cooperatively owned electric utility.
        ``(27) RTO.--The term `Regional Transmission Organization' or 
    `RTO' means an entity of sufficient regional scope approved by the 
    Commission--
            ``(A) to exercise operational or functional control of 
        facilities used for the transmission of electric energy in 
        interstate commerce; and
            ``(B) to ensure nondiscriminatory access to the facilities.
        ``(28) ISO.--The term `Independent System Operator' or `ISO' 
    means an entity approved by the Commission--
            ``(A) to exercise operational or functional control of 
        facilities used for the transmission of electric energy in 
        interstate commerce; and
            ``(B) to ensure nondiscriminatory access to the facilities.
        ``(29) Transmission organization.--The term `Transmission 
    Organization' means a Regional Transmission Organization, 
    Independent System Operator, independent transmission provider, or 
    other transmission organization finally approved by the Commission 
    for the operation of transmission facilities.''.
    (c) Applicability.--Section 201(f) of the Federal Power Act (16 
U.S.C. 824(f)) is amended by striking ``political subdivision of a 
state,'' and inserting ``political subdivision of a State, an electric 
cooperative that receives financing under the Rural Electrification Act 
of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 
megawatt hours of electricity per year,''.

            Subtitle I--Technical and Conforming Amendments

SEC. 1295. CONFORMING AMENDMENTS.

    (a) Section 201 of the Federal Power Act (16 U.S.C. 824) is 
amended--
        (1) in subsection (b)(2)--
            (A) in the first sentence--
                (i) by striking ``The'' and inserting ``Notwithstanding 
            section 201(f), the''; and
                (ii) by striking ``210, 211, and 212'' and inserting 
            ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 217, 
            218, 219, 220, 221, and 222''; and
            (B) in the second sentence--
                (i) by inserting ``or rule'' after ``any order''; and
                (ii) by striking ``210 or 211'' and inserting 
            ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 217, 
            218, 219, 220, 221, or 222''; and
        (2) in subsection (e), by striking ``210, 211, or 212'' and 
    inserting ``206(e), 206(f), 210, 211, 211A, 212, 215, 216, 217, 
    218, 219, 220, 221, or 222''.
    (b) Section 206 of the Federal Power Act (16 U.S.C. 824e) is 
amended--
        (1) in the first sentence of subsection (a), by striking 
    ``hearing had'' and inserting ``hearing held''; and
        (2) in the seventh sentence of subsection (b), by striking 
    ``the public utility to make''.
    (c) Section 211 of the Federal Power Act (16 U.S.C. 824j) is 
amended--
        (1) in subsection (c)--
            (A) by striking ``(2)'';
            (B) by striking ``(A)'' and inserting ``(1)''
            (C) by striking ``(B)'' and inserting ``(2)''; and
            (D) by striking ``termination of modification'' and 
        inserting ``termination or modification''; and
        (2) in the second sentence of subsection (d)(1), by striking 
    ``electric utility'' the second place it appears and inserting 
    ``transmitting utility''.
    (d) Section 315(c) of the Federal Power Act (16 U.S.C. 825n(c)) is 
amended by striking ``subsection'' and inserting ``section''.

                     Subtitle J--Economic Dispatch

SEC. 1298. ECONOMIC DISPATCH.

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

``SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH.

    ``(a) In General.--The Commission shall convene joint boards on a 
regional basis pursuant to section 209 of this Act to study the issue 
of security constrained economic dispatch for the various market 
regions. The Commission shall designate the appropriate regions to be 
covered by each such joint board for purposes of this section.
    ``(b) Membership.--The Commission shall request each State to 
nominate a representative for the appropriate regional joint board, and 
shall designate a member of the Commission to chair and participate as 
a member of each such board.
    ``(c) Powers.--The sole authority of each joint board convened 
under this section shall be to consider issues relevant to what 
constitutes `security constrained economic dispatch' and how such a 
mode of operating an electric energy system affects or enhances the 
reliability and affordability of service to customers in the region 
concerned and to make recommendations to the Commission regarding such 
issues.
    ``(d) Report to the Congress.--Within 1 year after enactment of 
this section, the Commission shall issue a report and submit such 
report to the Congress regarding the recommendations of the joint 
boards under this section and the Commission may consolidate the 
recommendations of more than one such regional joint board, including 
any consensus recommendations for statutory or regulatory reform.''.

                TITLE XIII--ENERGY POLICY TAX INCENTIVES

SEC. 1300. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ``Energy Tax 
Incentives Act of 2005''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

                 Subtitle A--Electricity Infrastructure

SEC. 1301. EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY 
              PRODUCTION CREDIT.

    (a) 2-Year Extension for Certain Facilities.--Section 45(d) 
(relating to qualified facilities) is amended--
        (1) by striking ``January 1, 2006'' each place it appears in 
    paragraphs (1), (2), (3), (5), (6), and (7) and inserting ``January 
    1, 2008'', and
        (2) by striking ``January 1, 2006'' in paragraph (4) and 
    inserting ``January 1, 2008 (January 1, 2006, in the case of a 
    facility using solar energy)''.
    (b) Increase in Credit Period.--Section 45(b)(4)(B) (relating to 
credit period) is amended--
        (1) by inserting ``or clause (iii)'' after ``clause (ii)'' in 
    clause (i), and
        (2) by adding at the end the following:
                ``(iii) Termination.--Clause (i) shall not apply to any 
            facility placed in service after the date of the enactment 
            of this clause.''.
    (c) Expansion of Qualified Resources to Certain Hydropower.--
        (1) In general.--Section 45(c)(1) (defining qualified energy 
    resources) is amended by striking ``and'' at the end of 
    subparagraph (F), by striking the period at the end of subparagraph 
    (G) and inserting ``, and'', and by adding at the end the following 
    new subparagraph:
            ``(H) qualified hydropower production.''.
        (2) Credit rate.--Section 45(b)(4)(A) (relating to credit rate) 
    is amended by striking ``or (7)'' and inserting ``(7), or (9)''.
        (3) Definition of resources.--Section 45(c) (relating to 
    qualified energy resources and refined coal) is amended by adding 
    at the end the following new paragraph:
        ``(8) Qualified hydropower production.--
            ``(A) In general.--The term `qualified hydropower 
        production' means--
                ``(i) in the case of any hydroelectric dam which was 
            placed in service on or before the date of the enactment of 
            this paragraph, the incremental hydropower production for 
            the taxable year, and
                ``(ii) in the case of any nonhydroelectric dam 
            described in subparagraph (C), the hydropower production 
            from the facility for the taxable year.
            ``(B) Determination of incremental hydropower production.--
                ``(i) In general.--For purposes of subparagraph (A), 
            incremental hydropower production for any taxable year 
            shall be equal to the percentage of average annual 
            hydropower production at the facility attributable to the 
            efficiency improvements or additions of capacity placed in 
            service after the date of the enactment of this paragraph, 
            determined by using the same water flow information used to 
            determine an historic average annual hydropower production 
            baseline for such facility. Such percentage and baseline 
            shall be certified by the Federal Energy Regulatory 
            Commission.
                ``(ii) Operational changes disregarded.--For purposes 
            of clause (i), the determination of incremental hydropower 
            production shall not be based on any operational changes at 
            such facility not directly associated with the efficiency 
            improvements or additions of capacity.
            ``(C) Nonhydroelectric dam.--For purposes of subparagraph 
        (A), a facility is described in this subparagraph if--
                ``(i) the facility is licensed by the Federal Energy 
            Regulatory Commission and meets all other applicable 
            environmental, licensing, and regulatory requirements,
                ``(ii) the facility was placed in service before the 
            date of the enactment of this paragraph and did not produce 
            hydroelectric power on the date of the enactment of this 
            paragraph, and
                ``(iii) turbines or other generating devices are to be 
            added to the facility after such date to produce 
            hydroelectric power, but only if there is not any 
            enlargement of the diversion structure, or construction or 
            enlargement of a bypass channel, or the impoundment or any 
            withholding of any additional water from the natural stream 
            channel.''.
        (4) Facilities.--Section 45(d) (relating to qualified 
    facilities) is amended by adding at the end the following new 
    paragraph:
        ``(9) Qualified hydropower facility.--In the case of a facility 
    producing qualified hydroelectric production described in 
    subsection (c)(8), the term `qualified facility' means--
            ``(A) in the case of any facility producing incremental 
        hydropower production, such facility but only to the extent of 
        its incremental hydropower production attributable to 
        efficiency improvements or additions to capacity described in 
        subsection (c)(8)(B) placed in service after the date of the 
        enactment of this paragraph and before January 1, 2008, and
            ``(B) any other facility placed in service after the date 
        of the enactment of this paragraph and before January 1, 2008.
            ``(C) Credit period.--In the case of a qualified facility 
        described in subparagraph (A), the 10-year period referred to 
        in subsection (a) shall be treated as beginning on the date the 
        efficiency improvements or additions to capacity are placed in 
        service.''.
    (d) Indian Coal.--
        (1) Production facilities.--Subsection (e) of section 45 
    (relating to definitions and special rules) is amended by adding at 
    the end the following new paragraph:
        ``(10) Indian coal production facilities.--
            ``(A) Determination of credit amount.--In the case of a 
        producer of Indian coal, the credit determined under this 
        section (without regard to this paragraph) for any taxable year 
        shall be increased by an amount equal to the applicable dollar 
        amount per ton of Indian coal--
                ``(i) produced by the taxpayer at an Indian coal 
            production facility during the 7-year period beginning on 
            January 1, 2006, and
                ``(ii) sold by the taxpayer--

                    ``(I) to an unrelated person, and
                    ``(II) during such 7-year period and such taxable 
                year.

            ``(B) Applicable dollar amount.--
                ``(i) In general.--The term `applicable dollar amount' 
            for any taxable year beginning in a calendar year means--

                    ``(I) $1.50 in the case of calendar years 2006 
                through 2009, and
                    ``(II) $2.00 in the case of calendar years 
                beginning after 2009.

                ``(ii) Inflation adjustment.--In the case of any 
            calendar year after 2006, each of the dollar amounts under 
            clause (i) shall be equal to the product of such dollar 
            amount and the inflation adjustment factor determined under 
            paragraph (2)(B) for the calendar year, except that such 
            paragraph shall be applied by substituting `2005' for 
            `1992'.
            ``(C) Application of rules.--Rules similar to the rules of 
        the subsection (b)(3) and paragraphs (1), (3), (4), and (5) of 
        this subsection shall apply for purposes of determining the 
        amount of any increase under this paragraph.
            ``(D) Treatment as specified credit.--The increase in the 
        credit determined under subsection (a) by reason of this 
        paragraph with respect to any facility shall be treated as a 
        specified credit for purposes of section 38(c)(4)(A) during the 
        4-year period beginning on the later of January 1, 2006, or the 
        date on which such facility is placed in service by the 
        taxpayer.''.
        (2) Resource.--Subsection (c) of section 45 (relating to 
    qualified energy resources and refined coal), as amended by this 
    Act, is amended by adding at the end the following new paragraph:
        ``(9) Indian coal.--
            ``(A) In general.--The term `Indian coal' means coal which 
        is produced from coal reserves which, on June 14, 2005--
                ``(i) were owned by an Indian tribe, or
                ``(ii) were held in trust by the United States for the 
            benefit of an Indian tribe or its members.
            ``(B) Indian tribe.--For purposes of this paragraph, the 
        term `Indian tribe' has the meaning given such term by section 
        7871(c)(3)(E)(ii).''.
        (3) Indian coal production facility.--Subsection (d) of section 
    45, as amended by this Act, is amended by adding at the end the 
    following new paragraph:
        ``(10) Indian coal production facility.--The term `Indian coal 
    production facility' means a facility which is placed in service 
    before January 1, 2009.''.
        (4) Conforming amendment.--The heading for section 45(c) is 
    amended by striking ``Qualified Energy Resources and Refined Coal'' 
    and inserting ``Resources''.
    (e) Technical Amendment Related to Trash Combustion Facilities.--
Section 45(d)(7) (relating to trash combustion facilities) is amended 
by adding at the end the following: ``Such term shall include a new 
unit placed in service in connection with a facility placed in service 
on or before the date of the enactment of this paragraph, but only to 
the extent of the increased amount of electricity produced at the 
facility by reason of such new unit.''.
    (f) Additional Technical Amendments Related to Section 710 of the 
American Jobs Creation Act of 2004.--
        (1) Clause (ii) of section 45(b)(4)(B) is amended by striking 
    ``the date of the enactment of this Act'' and inserting ``January 
    1, 2005,''.
        (2) Clause (ii) of section 45(c)(3)(A) is amended by inserting 
    ``or any nonhazardous lignin waste material'' after ``cellulosic 
    waste material''.
        (3) Subsection (e) of section 45 is amended by striking 
    paragraph (6).
        (4)(A) Paragraph (9) of section 45(e) is amended to read as 
    follows:
        ``(9) Coordination with credit for producing fuel from a 
    nonconventional source.--
            ``(A) In general.--The term `qualified facility' shall not 
        include any facility which produces electricity from gas 
        derived from the biodegradation of municipal solid waste if 
        such biodegradation occurred in a facility (within the meaning 
        of section 29) the production from which is allowed as a credit 
        under section 29 for the taxable year or any prior taxable 
        year.
            ``(B) Refined coal facilities.--The term `refined coal 
        production facility' shall not include any facility the 
        production from which is allowed as a credit under section 29 
        for the taxable year or any prior taxable year.''.
        (B) Subparagraph (C) of section 45(e)(8) is amended by striking 
    ``and (9)''.
        (5) Subclause (I) of section 168(e)(3)(B)(vi) is amended to 
    read as follows:

                    ``(I) is described in subparagraph (A) of section 
                48(a)(3) (or would be so described if `solar and wind' 
                were substituted for `solar' in clause (i) thereof and 
                the last sentence of such section did not apply to such 
                subparagraph),''.

        (6) Paragraph (4) of section 710(g) of the American Jobs 
    Creation Act of 2004 is amended by striking ``January 1, 2004'' and 
    inserting ``January 1, 2005''.
    (g) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall take effect of the date of 
    the enactment of this Act.
        (2) Technical amendments.--The amendments made by subsections 
    (e) and (f) shall take effect as if included in the amendments made 
    by section 710 of the American Jobs Creation Act of 2004.

SEC. 1302. APPLICATION OF SECTION 45 CREDIT TO AGRICULTURAL 
              COOPERATIVES.

    (a) In General.--Section 45(e) (relating to definitions and special 
rules), as amended by this Act, is amended by adding at the end the 
following:
        ``(11) Allocation of credit to patrons of agricultural 
    cooperative.--
            ``(A) Election to allocate.--
                ``(i) In general.--In the case of an eligible 
            cooperative organization, any portion of the credit 
            determined under subsection (a) for the taxable year may, 
            at the election of the organization, be apportioned among 
            patrons of the organization on the basis of the amount of 
            business done by the patrons during the taxable year.
                ``(ii) Form and effect of election.--An election under 
            clause (i) for any taxable year shall be made on a timely 
            filed return for such year. Such election, once made, shall 
            be irrevocable for such taxable year. Such election shall 
            not take effect unless the organization designates the 
            apportionment as such in a written notice mailed to its 
            patrons during the payment period described in section 
            1382(d).
            ``(B) Treatment of organizations and patrons.--The amount 
        of the credit apportioned to any patrons under subparagraph 
        (A)--
                ``(i) shall not be included in the amount determined 
            under subsection (a) with respect to the organization for 
            the taxable year, and
                ``(ii) shall be included in the amount determined under 
            subsection (a) for the first taxable year of each patron 
            ending on or after the last day of the payment period (as 
            defined in section 1382(d)) for the taxable year of the 
            organization or, if earlier, for the taxable year of each 
            patron ending on or after the date on which the patron 
            receives notice from the cooperative of the apportionment.
            ``(C) Special rules for decrease in credits for taxable 
        year.--If the amount of the credit of a cooperative 
        organization determined under subsection (a) for a taxable year 
        is less than the amount of such credit shown on the return of 
        the cooperative organization for such year, an amount equal to 
        the excess of--
                ``(i) such reduction, over
                ``(ii) the amount not apportioned to such patrons under 
            subparagraph (A) for the taxable year,
        shall be treated as an increase in tax imposed by this chapter 
        on the organization. Such increase shall not be treated as tax 
        imposed by this chapter for purposes of determining the amount 
        of any credit under this chapter.
            ``(D) Eligible cooperative defined.--For purposes of this 
        section the term `eligible cooperative' means a cooperative 
        organization described in section 1381(a) which is owned more 
        than 50 percent by agricultural producers or by entities owned 
        by agricultural producers. For this purpose an entity owned by 
        an agricultural producer is one that is more than 50 percent 
        owned by agricultural producers.''.
    (b) Conforming Amendment.--The last sentence of section 55(c)(1) is 
amended by inserting ``45(e)(11)(C),'' after ``section''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of cooperative organizations ending after the 
date of the enactment of this Act.

SEC. 1303. CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

     ``Subpart H--Nonrefundable Credit to Holders of Certain Bonds

``Sec. 54. Credit to holders of clean renewable energy bonds.

``SEC. 54. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a clean renewable 
energy bond on one or more credit allowance dates of the bond occurring 
during any taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
sum of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
        ``(1) In general.--The amount of the credit determined under 
    this subsection with respect to any credit allowance date for a 
    clean renewable energy bond is 25 percent of the annual credit 
    determined with respect to such bond.
        ``(2) Annual credit.--The annual credit determined with respect 
    to any clean renewable energy bond is the product of--
            ``(A) the credit rate determined by the Secretary under 
        paragraph (3) for the day on which such bond was sold, 
        multiplied by
            ``(B) the outstanding face amount of the bond.
        ``(3) Determination.--For purposes of paragraph (2), with 
    respect to any clean renewable energy bond, the Secretary shall 
    determine daily or cause to be determined daily a credit rate which 
    shall apply to the first day on which there is a binding, written 
    contract for the sale or exchange of the bond. The credit rate for 
    any day is the credit rate which the Secretary or the Secretary's 
    designee estimates will permit the issuance of clean renewable 
    energy bonds with a specified maturity or redemption date without 
    discount and without interest cost to the qualified issuer.
        ``(4) Credit allowance date.--For purposes of this section, the 
    term `credit allowance date' means--
            ``(A) March 15,
            ``(B) June 15,
            ``(C) September 15, and
            ``(D) December 15.
    Such term also includes the last day on which the bond is 
    outstanding.
        ``(5) Special rule for issuance and redemption.--In the case of 
    a bond which is issued during the 3-month period ending on a credit 
    allowance date, the amount of the credit determined under this 
    subsection with respect to such credit allowance date shall be a 
    ratable portion of the credit otherwise determined based on the 
    portion of the 3-month period during which the bond is outstanding. 
    A similar rule shall apply when the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
        ``(1) the sum of the regular tax liability (as defined in 
    section 26(b)) plus the tax imposed by section 55, over
        ``(2) the sum of the credits allowable under this part (other 
    than subpart C and this section).
    ``(d) Clean Renewable Energy Bond.--For purposes of this section--
        ``(1) In general.--The term `clean renewable energy bond' means 
    any bond issued as part of an issue if--
            ``(A) the bond is issued by a qualified issuer pursuant to 
        an allocation by the Secretary to such issuer of a portion of 
        the national clean renewable energy bond limitation under 
        subsection (f)(2),
            ``(B) 95 percent or more of the proceeds of such issue are 
        to be used for capital expenditures incurred by qualified 
        borrowers for one or more qualified projects,
            ``(C) the qualified issuer designates such bond for 
        purposes of this section and the bond is in registered form, 
        and
            ``(D) the issue meets the requirements of subsection (h).
        ``(2) Qualified project; special use rules.--
            ``(A) In general.--The term `qualified project' means any 
        qualified facility (as determined under section 45(d) without 
        regard to paragraph (10) and to any placed in service date) 
        owned by a qualified borrower.
            ``(B) Refinancing rules.--For purposes of paragraph (1)(B), 
        a qualified project may be refinanced with proceeds of a clean 
        renewable energy bond only if the indebtedness being refinanced 
        (including any obligation directly or indirectly refinanced by 
        such indebtedness) was originally incurred by a qualified 
        borrower after the date of the enactment of this section.
            ``(C) Reimbursement.--For purposes of paragraph (1)(B), a 
        clean renewable energy bond may be issued to reimburse a 
        qualified borrower for amounts paid after the date of the 
        enactment of this section with respect to a qualified project, 
        but only if--
                ``(i) prior to the payment of the original expenditure, 
            the qualified borrower declared its intent to reimburse 
            such expenditure with the proceeds of a clean renewable 
            energy bond,
                ``(ii) not later than 60 days after payment of the 
            original expenditure, the qualified issuer adopts an 
            official intent to reimburse the original expenditure with 
            such proceeds, and
                ``(iii) the reimbursement is made not later than 18 
            months after the date the original expenditure is paid.
            ``(D) Treatment of changes in use.--For purposes of 
        paragraph (1)(B), the proceeds of an issue shall not be treated 
        as used for a qualified project to the extent that a qualified 
        borrower or qualified issuer takes any action within its 
        control which causes such proceeds not to be used for a 
        qualified project. The Secretary shall prescribe regulations 
        specifying remedial actions that may be taken (including 
        conditions to taking such remedial actions) to prevent an 
        action described in the preceding sentence from causing a bond 
        to fail to be a clean renewable energy bond.
    ``(e) Maturity Limitations.--
        ``(1) Duration of term.--A bond shall not be treated as a clean 
    renewable energy bond if the maturity of such bond exceeds the 
    maximum term determined by the Secretary under paragraph (2) with 
    respect to such bond.
        ``(2) Maximum term.--During each calendar month, the Secretary 
    shall determine the maximum term permitted under this paragraph for 
    bonds issued during the following calendar month. Such maximum term 
    shall be the term which the Secretary estimates will result in the 
    present value of the obligation to repay the principal on the bond 
    being equal to 50 percent of the face amount of such bond. Such 
    present value shall be determined without regard to the 
    requirements of subsection (l)(6) and using as a discount rate the 
    average annual interest rate of tax-exempt obligations having a 
    term of 10 years or more which are issued during the month. If the 
    term as so determined is not a multiple of a whole year, such term 
    shall be rounded to the next highest whole year.
    ``(f) Limitation on Amount of Bonds Designated.--
        ``(1) National limitation.--There is a national clean renewable 
    energy bond limitation of $800,000,000.
        ``(2) Allocation by secretary.--The Secretary shall allocate 
    the amount described in paragraph (1) among qualified projects in 
    such manner as the Secretary determines appropriate, except that 
    the Secretary may not allocate more than $500,000,000 of the 
    national clean renewable energy bond limitation to finance 
    qualified projects of qualified borrowers which are governmental 
    bodies.
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Special Rules Relating to Expenditures.--
        ``(1) In general.--An issue shall be treated as meeting the 
    requirements of this subsection if, as of the date of issuance, the 
    qualified issuer reasonably expects--
            ``(A) at least 95 percent of the proceeds of such issue are 
        to be spent for one or more qualified projects within the 5-
        year period beginning on the date of issuance of the clean 
        energy bond,
            ``(B) a binding commitment with a third party to spend at 
        least 10 percent of the proceeds of such issue will be incurred 
        within the 6-month period beginning on the date of issuance of 
        the clean energy bond or, in the case of a clean energy bond 
        the proceeds of which are to be loaned to two or more qualified 
        borrowers, such binding commitment will be incurred within the 
        6-month period beginning on the date of the loan of such 
        proceeds to a qualified borrower, and
            ``(C) such projects will be completed with due diligence 
        and the proceeds of such issue will be spent with due 
        diligence.
        ``(2) Extension of period.--Upon submission of a request prior 
    to the expiration of the period described in paragraph (1)(A), the 
    Secretary may extend such period if the qualified issuer 
    establishes that the failure to satisfy the 5-year requirement is 
    due to reasonable cause and the related projects will continue to 
    proceed with due diligence.
        ``(3) Failure to spend required amount of bond proceeds within 
    5 years.--To the extent that less than 95 percent of the proceeds 
    of such issue are expended by the close of the 5-year period 
    beginning on the date of issuance (or if an extension has been 
    obtained under paragraph (2), by the close of the extended period), 
    the qualified issuer shall redeem all of the nonqualified bonds 
    within 90 days after the end of such period. For purposes of this 
    paragraph, the amount of the nonqualified bonds required to be 
    redeemed shall be determined in the same manner as under section 
    142.
    ``(i) Special Rules Relating to Arbitrage.--A bond which is part of 
an issue shall not be treated as a clean renewable energy bond unless, 
with respect to the issue of which the bond is a part, the qualified 
issuer satisfies the arbitrage requirements of section 148 with respect 
to proceeds of the issue.
    ``(j) Cooperative Electric Company; Qualified Energy Tax Credit 
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of 
this section--
        ``(1) Cooperative electric company.--The term `cooperative 
    electric company' means a mutual or cooperative electric company 
    described in section 501(c)(12) or section 1381(a)(2)(C), or a not-
    for-profit electric utility which has received a loan or loan 
    guarantee under the Rural Electrification Act.
        ``(2) Clean renewable energy bond lender.--The term `clean 
    renewable energy bond lender' means a lender which is a cooperative 
    which is owned by, or has outstanding loans to, 100 or more 
    cooperative electric companies and is in existence on February 1, 
    2002, and shall include any affiliated entity which is controlled 
    by such lender.
        ``(3) Governmental body.--The term `governmental body' means 
    any State, territory, possession of the United States, the District 
    of Columbia, Indian tribal government, and any political 
    subdivision thereof.
        ``(4) Qualified issuer.--The term `qualified issuer' means--
            ``(A) a clean renewable energy bond lender,
            ``(B) a cooperative electric company, or
            ``(C) a governmental body.
        ``(5) Qualified borrower.--The term `qualified borrower' 
    means--
            ``(A) a mutual or cooperative electric company described in 
        section 501(c)(12) or 1381(a)(2)(C), or
            ``(B) a governmental body.
    ``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to any loan unless the borrower has 
entered into a written loan commitment for such portion prior to the 
issue date of such issue.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
        ``(1) Bond.--The term `bond' includes any obligation.
        ``(2) Pooled financing bond.--The term `pooled financing bond' 
    shall have the meaning given such term by section 149(f)(4)(A).
        ``(3) Partnership; s corporation; and other pass-thru 
    entities.--
            ``(A) In general.--Under regulations prescribed by the 
        Secretary, in the case of a partnership, trust, S corporation, 
        or other pass-thru entity, rules similar to the rules of 
        section 41(g) shall apply with respect to the credit allowable 
        under subsection (a).
            ``(B) No basis adjustment.--In the case of a bond held by a 
        partnership or an S corporation, rules similar to the rules 
        under section 1397E(i) shall apply.
        ``(4) Bonds held by regulated investment companies.--If any 
    clean renewable energy bond is held by a regulated investment 
    company, the credit determined under subsection (a) shall be 
    allowed to shareholders of such company under procedures prescribed 
    by the Secretary.
        ``(5) Treatment for estimated tax purposes.--Solely for 
    purposes of sections 6654 and 6655, the credit allowed by this 
    section (determined without regard to subsection (c)) to a taxpayer 
    by reason of holding a clean renewable energy bond on a credit 
    allowance date shall be treated as if it were a payment of 
    estimated tax made by the taxpayer on such date.
        ``(6) Ratable principal amortization required.--A bond shall 
    not be treated as a clean renewable energy bond unless it is part 
    of an issue which provides for an equal amount of principal to be 
    paid by the qualified issuer during each calendar year that the 
    issue is outstanding.
        ``(7) Reporting.--Issuers of clean renewable energy bonds shall 
    submit reports similar to the reports required under section 
    149(e).
    ``(m) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2007.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest) is amended by adding at the end the 
following new paragraph:
        ``(8) Reporting of credit on clean renewable energy bonds.--
            ``(A) In general.--For purposes of subsection (a), the term 
        `interest' includes amounts includible in gross income under 
        section 54(g) and such amounts shall be treated as paid on the 
        credit allowance date (as defined in section 54(b)(4)).
            ``(B) Reporting to corporations, etc.--Except as otherwise 
        provided in regulations, in the case of any interest described 
        in subparagraph (A), subsection (b)(4) shall be applied without 
        regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of 
        such subsection.
            ``(C) Regulatory authority.--The Secretary may prescribe 
        such regulations as are necessary or appropriate to carry out 
        the purposes of this paragraph, including regulations which 
        require more frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
        (1) The table of subparts for part IV of subchapter A of 
    chapter 1 is amended by adding at the end the following new item:


    ``Subpart H. Nonrefundable Credit to Holders of Certain Bonds.''.

        (2) Section 1397E(c)(2) is amended by inserting ``, and subpart 
    H thereof'' after ``refundable credits''.
        (3) Subsection (h) of section 1397E is amended to read as 
    follows:
    ``(h) Credit Treated as Nonrefundable Bondholder Credit.--For 
purposes of this title, the credit allowed by this section shall be 
treated as a credit allowable under subpart H of part IV of subchapter 
A of this chapter.''.
        (4) Section 6401(b)(1) is amended by striking ``and G'' and 
    inserting ``G, and H''.
    (d) Issuance of Regulations.--The Secretary of the Treasury shall 
issue regulations required under section 54 of the Internal Revenue 
Code of 1986 (as added by this section) not later than 120 days after 
the date of the enactment of this Act.
    (e) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2005.

SEC. 1304. TREATMENT OF INCOME OF CERTAIN ELECTRIC COOPERATIVES.

    (a) Elimination of Sunset on Treatment of Income From Open Access 
and Nuclear Decommissioning Transactions.--Section 501(c)(12)(C) is 
amended by striking the last sentence.
    (b) Elimination of Sunset on Treatment of Income From Load Loss 
Transactions.--Section 501(c)(12)(H) is amended by striking clause (x).
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1305. DISPOSITIONS OF TRANSMISSION PROPERTY TO IMPLEMENT FERC 
              RESTRUCTURING POLICY.

    (a) In General.--Section 451(i)(3) (defining qualifying electric 
transmission transaction) is amended by striking ``2007'' and inserting 
``2008''.
    (b) Technical Amendment Related to Section 909 of the American Jobs 
Creation Act of 2004.--Clause (ii) of section 451(i)(4)(B) is amended 
by striking ``the close of the period applicable under subsection 
(a)(2)(B) as extended under paragraph (2)'' and inserting ``December 
31, 2007''.
    (c) Effective Dates.--
        (1) In general.--The amendment made by subsection (a) shall 
    apply to transactions occurring after the date of the enactment of 
    this Act.
        (2) Technical amendment.--The amendment made by subsection (b) 
    shall take effect as if included in the amendments made by section 
    909 of the American Jobs Creation Act of 2004.

SEC. 1306. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER 
              FACILITIES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by adding after 
section 45I the following new section:

``SEC. 45J. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER 
              FACILITIES.

    ``(a) General Rule.--For purposes of section 38, the advanced 
nuclear power facility production credit of any taxpayer for any 
taxable year is equal to the product of--
        ``(1) 1.8 cents, multiplied by
        ``(2) the kilowatt hours of electricity--
            ``(A) produced by the taxpayer at an advanced nuclear power 
        facility during the 8-year period beginning on the date the 
        facility was originally placed in service, and
            ``(B) sold by the taxpayer to an unrelated person during 
        the taxable year.
    ``(b) National Limitation.--
        ``(1) In general.--The amount of credit which would (but for 
    this subsection and subsection (c)) be allowed with respect to any 
    facility for any taxable year shall not exceed the amount which 
    bears the same ratio to such amount of credit as--
            ``(A) the national megawatt capacity limitation allocated 
        to the facility, bears to
            ``(B) the total megawatt nameplate capacity of such 
        facility.
        ``(2) Amount of national limitation.--The national megawatt 
    capacity limitation shall be 6,000 megawatts.
        ``(3) Allocation of limitation.--The Secretary shall allocate 
    the national megawatt capacity limitation in such manner as the 
    Secretary may prescribe.
        ``(4) Regulations.--Not later than 6 months after the date of 
    the enactment of this section, the Secretary shall prescribe such 
    regulations as may be necessary or appropriate to carry out the 
    purposes of this subsection. Such regulations shall provide a 
    certification process under which the Secretary, after consultation 
    with the Secretary of Energy, shall approve and allocate the 
    national megawatt capacity limitation.
    ``(c) Other Limitations.--
        ``(1) Annual limitation.--The amount of the credit allowable 
    under subsection (a) (after the application of subsection (b)) for 
    any taxable year with respect to any facility shall not exceed an 
    amount which bears the same ratio to $125,000,000 as--
            ``(A) the national megawatt capacity limitation allocated 
        under subsection (b) to the facility, bears to
            ``(B) 1,000.
        ``(2) Other limitations.--Rules similar to the rules of section 
    45(b)(1) shall apply for purposes of this section.
    ``(d) Advanced Nuclear Power Facility.--For purposes of this 
section--
        ``(1) In general.--The term `advanced nuclear power facility' 
    means any advanced nuclear facility--
            ``(A) which is owned by the taxpayer and which uses nuclear 
        energy to produce electricity, and
            ``(B) which is placed in service after the date of the 
        enactment of this paragraph and before January 1, 2021.
        ``(2) Advanced nuclear facility.--For purposes of paragraph 
    (1), the term `advanced nuclear facility' means any nuclear 
    facility the reactor design for which is approved after December 
    31, 1993, by the Nuclear Regulatory Commission (and such design or 
    a substantially similar design of comparable capacity was not 
    approved on or before such date).
    ``(e) Other Rules To Apply.--Rules similar to the rules of 
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall apply for 
purposes of this section.''.
    (b) Credit Treated as Business Credit.--Section 38(b), as amended 
by the Transportation Equity Act: A Legacy for Users, is amended by 
striking ``plus'' at the end of paragraph (19), by striking the period 
at the end of paragraph (20) and inserting ``, plus'', and by adding at 
the end the following:
        ``(21) the advanced nuclear power facility production credit 
    determined under section 45J(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following:

``Sec. 45J. Credit for production from advanced nuclear power 
          facilities.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to production in taxable years beginning after the date of the 
enactment of this Act.

SEC. 1307. CREDIT FOR INVESTMENT IN CLEAN COAL FACILITIES.

    (a) In General.--Section 46 (relating to amount of credit) is 
amended by striking ``and'' at the end of paragraph (1), by striking 
the period at the end of paragraph (2), and by adding at the end the 
following new paragraphs:
        ``(3) the qualifying advanced coal project credit, and
        ``(4) the qualifying gasification project credit.''.
    (b) Amount of Credits.--Subpart E of part IV of subchapter A of 
chapter 1 (relating to rules for computing investment credit) is 
amended by inserting after section 48 the following new sections:

``SEC. 48A. QUALIFYING ADVANCED COAL PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
advanced coal project credit for any taxable year is an amount equal 
to--
        ``(1) 20 percent of the qualified investment for such taxable 
    year in the case of projects described in subsection (d)(3)(B)(i), 
    and
        ``(2) 15 percent of the qualified investment for such taxable 
    year in the case of projects described in subsection (d)(3)(B)(ii).
    ``(b) Qualified Investment.--
        ``(1) In general.--For purposes of subsection (a), the 
    qualified investment for any taxable year is the basis of eligible 
    property placed in service by the taxpayer during such taxable year 
    which is part of a qualifying advanced coal project--
            ``(A)(i) the construction, reconstruction, or erection of 
        which is completed by the taxpayer, or
            ``(ii) which is acquired by the taxpayer if the original 
        use of such property commences with the taxpayer, and
            ``(B) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable.
        ``(2) Special rule for certain subsidized property.--Rules 
    similar to section 48(a)(4) shall apply for purposes of this 
    section.
        ``(3) Certain qualified progress expenditures rules made 
    applicable.--Rules similar to the rules of subsections (c)(4) and 
    (d) of section 46 (as in effect on the day before the enactment of 
    the Revenue Reconciliation Act of 1990) shall apply for purposes of 
    this section.
    ``(c) Definitions.--For purposes of this section--
        ``(1) Qualifying advanced coal project.--The term `qualifying 
    advanced coal project' means a project which meets the requirements 
    of subsection (e).
        ``(2) Advanced coal-based generation technology.--The term 
    `advanced coal-based generation technology' means a technology 
    which meets the requirements of subsection (f).
        ``(3) Eligible property.--The term `eligible property' means--
            ``(A) in the case of any qualifying advanced coal project 
        using an integrated gasification combined cycle, any property 
        which is a part of such project and is necessary for the 
        gasification of coal, including any coal handling and gas 
        separation equipment, and
            ``(B) in the case of any other qualifying advanced coal 
        project, any property which is a part of such project.
        ``(4) Coal.--The term `coal' means anthracite, bituminous coal, 
    subbituminous coal, lignite, and peat.
        ``(5) Greenhouse gas capture capability.--The term `greenhouse 
    gas capture capability' means an integrated gasification combined 
    cycle technology facility capable of adding components which can 
    capture, separate on a long-term basis, isolate, remove, and 
    sequester greenhouse gases which result from the generation of 
    electricity.
        ``(6) Electric generation unit.--The term `electric generation 
    unit' means any facility at least 50 percent of the total annual 
    net output of which is electrical power, including an otherwise 
    eligible facility which is used in an industrial application.
        ``(7) Integrated gasification combined cycle.--The term 
    `integrated gasification combined cycle' means an electric 
    generation unit which produces electricity by converting coal to 
    synthesis gas which is used to fuel a combined-cycle plant which 
    produces electricity from both a combustion turbine (including a 
    combustion turbine/fuel cell hybrid) and a steam turbine.
    ``(d) Qualifying Advanced Coal Project Program.--
        ``(1) Establishment.--Not later than 180 days after the date of 
    enactment of this section, the Secretary, in consultation with the 
    Secretary of Energy, shall establish a qualifying advanced coal 
    project program for the deployment of advanced coal-based 
    generation technologies.
        ``(2) Certification.--
            ``(A) Application period.--Each applicant for certification 
        under this paragraph shall submit an application meeting the 
        requirements of subparagraph (B). An applicant may only submit 
        an application during the 3-year period beginning on the date 
        the Secretary establishes the program under paragraph (1).
            ``(B) Requirements for applications for certification.--An 
        application under subparagraph (A) shall contain such 
        information as the Secretary may require in order to make a 
        determination to accept or reject an application for 
        certification as meeting the requirements under subsection 
        (e)(1). Any information contained in the application shall be 
        protected as provided in section 552(b)(4) of title 5, United 
        States Code.
            ``(C) Time to act upon applications for certification.--The 
        Secretary shall issue a determination as to whether an 
        applicant has met the requirements under subsection (e)(1) 
        within 60 days following the date of submittal of the 
        application for certification.
            ``(D) Time to meet criteria for certification.--Each 
        applicant for certification shall have 2 years from the date of 
        acceptance by the Secretary of the application during which to 
        provide to the Secretary evidence that the criteria set forth 
        in subsection (e)(2) have been met.
            ``(E) Period of issuance.--An applicant which receives a 
        certification shall have 5 years from the date of issuance of 
        the certification in order to place the project in service and 
        if such project is not placed in service by that time period 
        then the certification shall no longer be valid.
        ``(3) Aggregate credits.--
            ``(A) In general.--The aggregate credits allowed under 
        subsection (a) for projects certified by the Secretary under 
        paragraph (2) may not exceed $1,300,000,000.
            ``(B) Particular projects.--Of the dollar amount in 
        subparagraph (A), the Secretary is authorized to certify--
                ``(i) $800,000,000 for integrated gasification combined 
            cycle projects, and
                ``(ii) $500,000,000 for projects which use other 
            advanced coal-based generation technologies.
        ``(4) Review and redistribution.--
            ``(A) Review.--Not later than 6 years after the date of 
        enactment of this section, the Secretary shall review the 
        credits allocated under this section as of the date which is 6 
        years after the date of enactment of this section.
            ``(B) Redistribution.--The Secretary may reallocate credits 
        available under clauses (i) and (ii) of paragraph (3)(B) if the 
        Secretary determines that--
                ``(i) there is an insufficient quantity of qualifying 
            applications for certification pending at the time of the 
            review, or
                ``(ii) any certification made pursuant to subsection 
            paragraph (2) has been revoked pursuant to subsection 
            paragraph (2)(D) because the project subject to the 
            certification has been delayed as a result of third party 
            opposition or litigation to the proposed project.
            ``(C) Reallocation.--If the Secretary determines that 
        credits under clause (i) or (ii) of paragraph (3)(B) are 
        available for reallocation pursuant to the requirements set 
        forth in paragraph (2), the Secretary is authorized to conduct 
        an additional program for applications for certification.
    ``(e) Qualifying Advanced Coal Projects.--
        ``(1) Requirements.--For purposes of subsection (c)(1), a 
    project shall be considered a qualifying advanced coal project that 
    the Secretary may certify under subsection (d)(2) if the Secretary 
    determines that, at a minimum--
            ``(A) the project uses an advanced coal-based generation 
        technology--
                ``(i) to power a new electric generation unit; or
                ``(ii) to retrofit or repower an existing electric 
            generation unit (including an existing natural gas-fired 
            combined cycle unit);
            ``(B) the fuel input for the project, when completed, is at 
        least 75 percent coal;
            ``(C) the project, consisting of one or more electric 
        generation units at one site, will have a total nameplate 
        generating capacity of at least 400 megawatts;
            ``(D) the applicant provides evidence that a majority of 
        the output of the project is reasonably expected to be acquired 
        or utilized;
            ``(E) the applicant provides evidence of ownership or 
        control of a site of sufficient size to allow the proposed 
        project to be constructed and to operate on a long-term basis; 
        and
            ``(F) the project will be located in the United States.
        ``(2) Requirements for certification.--For the purpose of 
    subsection (d)(2)(D), a project shall be eligible for certification 
    only if the Secretary determines that--
            ``(A) the applicant for certification has received all 
        Federal and State environmental authorizations or reviews 
        necessary to commence construction of the project; and
            ``(B) the applicant for certification, except in the case 
        of a retrofit or repower of an existing electric generation 
        unit, has purchased or entered into a binding contract for the 
        purchase of the main steam turbine or turbines for the project, 
        except that such contract may be contingent upon receipt of a 
        certification under subsection (d)(2).
        ``(3) Priority for integrated gasification combined cycle 
    projects.--In determining which qualifying advanced coal projects 
    to certify under subsection (d)(2), the Secretary shall--
            ``(A) certify capacity, in accordance with the procedures 
        set forth in subsection (d), in relatively equal amounts to--
                ``(i) projects using bituminous coal as a primary 
            feedstock,
                ``(ii) projects using subbituminous coal as a primary 
            feedstock, and
                ``(iii) projects using lignite as a primary feedstock, 
            and
            ``(B) give high priority to projects which include, as 
        determined by the Secretary--
                ``(i) greenhouse gas capture capability,
                ``(ii) increased by-product utilization, and
                ``(iii) other benefits.
    ``(f) Advanced Coal-Based Generation Technology.--
        ``(1) In general.--For the purpose of this section, an electric 
    generation unit uses advanced coal-based generation technology if--
            ``(A) the unit--
                ``(i) uses integrated gasification combined cycle 
            technology, or
                ``(ii) except as provided in paragraph (3), has a 
            design net heat rate of 8530 Btu/kWh (40 percent 
            efficiency), and
            ``(B) the unit is designed to meet the performance 
        requirements in the following table:

 
 
 
Performance characteristic:         Design level for project:
  SO2 (percent removal)...........  99 percent
  NOx (emissions).................  0.07 lbs/MMBTU
  PM* (emissions).................  0.015 lbs/MMBTU
  Hg (percent removal)............  90 percent


        ``(2) Design net heat rate.--For purposes of this subsection, 
    design net heat rate with respect to an electric generation unit 
    shall--
            ``(A) be measured in Btu per kilowatt hour (higher heating 
        value),
            ``(B) be based on the design annual heat input to the unit 
        and the rated net electrical power, fuels, and chemicals output 
        of the unit (determined without regard to the cogeneration of 
        steam by the unit),
            ``(C) be adjusted for the heat content of the design coal 
        to be used by the unit--
                ``(i) if the heat content is less than 13,500 Btu per 
            pound, but greater than 7,000 Btu per pound, according to 
            the following formula: design net heat rate = unit net heat 
            rate x [1-[((13,500-design coal heat content, Btu per 
            pound)/1,000)* 0.013]], and
                ``(ii) if the heat content is less than or equal to 
            7,000 Btu per pound, according to the following formula: 
            design net heat rate = unit net heat rate x [1-[((13,500-
            design coal heat content, Btu per pound)/1,000)* 0.018]], 
            and
            ``(D) be corrected for the site reference conditions of--
                ``(i) elevation above sea level of 500 feet,
                ``(ii) air pressure of 14.4 pounds per square inch 
            absolute,
                ``(iii) temperature, dry bulb of 63F,
                ``(iv) temperature, wet bulb of 54F, and
                ``(v) relative humidity of 55 percent.
        ``(3) Existing units.--In the case of any electric generation 
    unit in existence on the date of the enactment of this section, 
    such unit uses advanced coal-based generation technology if, in 
    lieu of the requirements under paragraph (1)(A)(ii), such unit 
    achieves a minimum efficiency of 35 percent and an overall thermal 
    design efficiency improvement, compared to the efficiency of the 
    unit as operated, of not less than--
            ``(A) 7 percentage points for coal of more than 9,000 Btu,
            ``(B) 6 percentage points for coal of 7,000 to 9,000 Btu, 
        or
            ``(C) 4 percentage points for coal of less than 7,000 Btu.
    ``(g) Applicability.--No use of technology (or level of emission 
reduction solely by reason of the use of the technology), and no 
achievement of any emission reduction by the demonstration of any 
technology or performance level, by or at one or more facilities with 
respect to which a credit is allowed under this section, shall be 
considered to indicate that the technology or performance level is--
        ``(1) adequately demonstrated for purposes of section 111 of 
    the Clean Air Act (42 U.S.C. 7411);
        ``(2) achievable for purposes of section 169 of that Act (42 
    U.S.C. 7479); or
        ``(3) achievable in practice for purposes of section 171 of 
    such Act (42 U.S.C. 7501).

``SEC. 48B. QUALIFYING GASIFICATION PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
gasification project credit for any taxable year is an amount equal to 
20 percent of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
        ``(1) In general.--For purposes of subsection (a), the 
    qualified investment for any taxable year is the basis of eligible 
    property placed in service by the taxpayer during such taxable year 
    which is part of a qualifying gasification project--
            ``(A)(i) the construction, reconstruction, or erection of 
        which is completed by the taxpayer, or
            ``(ii) which is acquired by the taxpayer if the original 
        use of such property commences with the taxpayer, and
            ``(B) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable.
        ``(2) Special rule for certain subsidized property.--Rules 
    similar to section 48(a)(4) shall apply for purposes of this 
    section.
        ``(3) Certain qualified progress expenditures rules made 
    applicable.--Rules similar to the rules of subsections (c)(4) and 
    (d) of section 46 (as in effect on the day before the enactment of 
    the Revenue Reconciliation Act of 1990) shall apply for purposes of 
    this section.
    ``(c) Definitions.--For purposes of this section--
        ``(1) Qualifying gasification project.--The term `qualifying 
    gasification project' means any project which--
            ``(A) employs gasification technology,
            ``(B) will be carried out by an eligible entity, and
            ``(C) any portion of the qualified investment of which is 
        certified under the qualifying gasification program as eligible 
        for credit under this section in an amount (not to exceed 
        $650,000,000) determined by the Secretary.
        ``(2) Gasification technology.--The term `gasification 
    technology' means any process which converts a solid or liquid 
    product from coal, petroleum residue, biomass, or other materials 
    which are recovered for their energy or feedstock value into a 
    synthesis gas composed primarily of carbon monoxide and hydrogen 
    for direct use or subsequent chemical or physical conversion.
        ``(3) Eligible property.--The term `eligible property' means 
    any property which is a part of a qualifying gasification project 
    and is necessary for the gasification technology of such project.
        ``(4) Biomass.--
            ``(A) In general.--The term `biomass' means any--
                ``(i) agricultural or plant waste,
                ``(ii) byproduct of wood or paper mill operations, 
            including lignin in spent pulping liquors, and
                ``(iii) other products of forestry maintenance.
            ``(B) Exclusion.--The term `biomass' does not include paper 
        which is commonly recycled.
        ``(5) Carbon capture capability.--The term `carbon capture 
    capability' means a gasification plant design which is determined 
    by the Secretary to reflect reasonable consideration for, and be 
    capable of, accommodating the equipment likely to be necessary to 
    capture carbon dioxide from the gaseous stream, for later use or 
    sequestration, which would otherwise be emitted in the flue gas 
    from a project which uses a nonrenewable fuel.
        ``(6) Coal.--The term `coal' means anthracite, bituminous coal, 
    subbituminous coal, lignite, and peat.
        ``(7) Eligible entity.--The term `eligible entity' means any 
    person whose application for certification is principally intended 
    for use in a domestic project which employs domestic gasification 
    applications related to--
            ``(A) chemicals,
            ``(B) fertilizers,
            ``(C) glass,
            ``(D) steel,
            ``(E) petroleum residues,
            ``(F) forest products, and
            ``(G) agriculture, including feedlots and dairy operations.
        ``(8) Petroleum residue.--The term `petroleum residue' means 
    the carbonized product of high-boiling hydrocarbon fractions 
    obtained in petroleum processing.
    ``(d) Qualifying Gasification Project Program.--
        ``(1) In general.--Not later than 180 days after the date of 
    the enactment of this section, the Secretary, in consultation with 
    the Secretary of Energy, shall establish a qualifying gasification 
    project program to consider and award certifications for qualified 
    investment eligible for credits under this section to qualifying 
    gasification project sponsors under this section. The total amounts 
    of credit that may be allocated under the program shall not exceed 
    $350,000,000 under rules similar to the rules of section 48A(d)(4).
        ``(2) Period of issuance.--A certificate of eligibility under 
    paragraph (1) may be issued only during the 10-fiscal year period 
    beginning on October 1, 2005.
        ``(3) Selection criteria.--The Secretary shall not make a 
    competitive certification award for qualified investment for credit 
    eligibility under this section unless the recipient has documented 
    to the satisfaction of the Secretary that--
            ``(A) the award recipient is financially viable without the 
        receipt of additional Federal funding associated with the 
        proposed project,
            ``(B) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the qualified 
        investment is spent efficiently and effectively,
            ``(C) a market exists for the products of the proposed 
        project as evidenced by contracts or written statements of 
        intent from potential customers,
            ``(D) the fuels identified with respect to the gasification 
        technology for such project will comprise at least 90 percent 
        of the fuels required by the project for the production of 
        chemical feedstocks, liquid transportation fuels, or 
        coproduction of electricity,
            ``(E) the award recipient's project team is competent in 
        the construction and operation of the gasification technology 
        proposed, with preference given to those recipients with 
        experience which demonstrates successful and reliable 
        operations of the technology on domestic fuels so identified, 
        and
            ``(F) the award recipient has met other criteria 
        established and published by the Secretary.
    ``(e) Denial of Double Benefit.--A credit shall not be allowed 
under this section for any qualified investment for which a credit is 
allowed under section 48A.''.
    (c) Conforming Amendments.--
        (1) Section 49(a)(1)(C) is amended by striking ``and'' at the 
    end of clause (ii), by striking clause (iii), and by adding after 
    clause (ii) the following new clauses:
                ``(iii) the basis of any property which is part of a 
            qualifying advanced coal project under section 48A, and
                ``(iv) the basis of any property which is part of a 
            qualifying gasification project under section 48B.''.
        (2) The table of sections for subpart E of part IV of 
    subchapter A of chapter 1 is amended by inserting after the item 
    relating to section 48 the following new items:

``Sec. 48A. Qualifying advanced coal project credit.
``Sec. 48B. Qualifying gasification project credit.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 1308. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Subparagraph (E) of section 168(e)(3) (relating to 
classification of certain property) is amended by striking ``and'' at 
the end of clause (v), by striking the period at the end of clause (vi) 
and inserting ``, and'', and by adding at the end the following new 
clause:
                ``(vii) any section 1245 property (as defined in 
            section 1245(a)(3)) used in the transmission at 69 or more 
            kilovolts of electricity for sale and the original use of 
            which commences with the taxpayer after April 11, 2005.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property assigned to 
classes) is amended by inserting after the item relating to 
subparagraph (E)(vi) the following new item:

 
 
 
``(E)(vii).................................................        30''.
 


    (c) Effective Date.--
        (1) In general.--The amendments made by this section shall 
    apply to property placed in service after April 11, 2005.
        (2) Exception.--The amendments made by this section shall not 
    apply to any property with respect to which the taxpayer or a 
    related party has entered into a binding contract for the 
    construction thereof on or before April 11, 2005, or, in the case 
    of self-constructed property, has started construction on or before 
    such date.

SEC. 1309. EXPANSION OF AMORTIZATION FOR CERTAIN ATMOSPHERIC POLLUTION 
              CONTROL FACILITIES IN CONNECTION WITH PLANTS FIRST PLACED 
              IN SERVICE AFTER 1975.

    (a) Eligibility of Post-1975 Pollution Control Facilities.--
Subsection (d) of section 169 (relating to definitions) is amended by 
adding at the end the following:
        ``(5) Special rule relating to certain atmospheric pollution 
    control facilities.--In the case of any atmospheric pollution 
    control facility which is placed in service after April 11, 2005, 
    and used in connection with an electric generation plant or other 
    property which is primarily coal fired--
            ``(A) paragraph (1) shall be applied without regard to the 
        phrase `in operation before January 1, 1976', and
            ``(B) this section shall be applied by substituting `84' 
        for `60' each place it appears in subsections (a) and (b).''.
    (b) Treatment as New Identifiable Treatment Facility.--Subparagraph 
(B) of section 169(d)(4) is amended to read as follows:
            ``(B) Certain facilities placed in operation after april 
        11, 2005.--In the case of any facility described in paragraph 
        (1) solely by reason of paragraph (5), subparagraph (A) shall 
        be applied by substituting `April 11, 2005' for `December 31, 
        1968' each place it appears therein.''.
    (c) Conforming Amendment.--The heading for section 169(d) is 
amended by inserting ``and Special Rules'' after ``Definitions''.
    (d) Technical Amendment.--Section 169(d)(3) is amended by striking 
``Health, Education, and Welfare'' and inserting ``Health and Human 
Services''.
    (e) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after April 11, 2005.

SEC. 1310. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR DECOMMISSIONING 
              COSTS.

    (a) Repeal of Limitation on Deposits Into Fund Based on Cost of 
Service; Contributions After Funding Period.--Subsection (b) of section 
468A (relating to special rules for nuclear decommissioning costs) is 
amended to read as follows:
    ``(b) Limitation on Amounts Paid Into Fund.--The amount which a 
taxpayer may pay into the Fund for any taxable year shall not exceed 
the ruling amount applicable to such taxable year.''.
    (b) Treatment of Certain Decommissioning Costs.--
        (1) In general.--Section 468A is amended by redesignating 
    subsections (f) and (g) as subsections (g) and (h), respectively, 
    and by inserting after subsection (e) the following new subsection:
    ``(f) Transfers Into Qualified Funds.--
        ``(1) In general.--Notwithstanding subsection (b), any taxpayer 
    maintaining a Fund to which this section applies with respect to a 
    nuclear power plant may transfer into such Fund not more than an 
    amount equal to the present value of the portion of the total 
    nuclear decommissioning costs with respect to such nuclear power 
    plant previously excluded for such nuclear power plant under 
    subsection (d)(2)(A) as in effect immediately before the date of 
    the enactment of this subsection.
        ``(2) Deduction for amounts transferred.--
            ``(A) In general.--Except as provided in subparagraph (C), 
        the deduction allowed by subsection (a) for any transfer 
        permitted by this subsection shall be allowed ratably over the 
        remaining estimated useful life (within the meaning of 
        subsection (d)(2)(A)) of the nuclear power plant beginning with 
        the taxable year during which the transfer is made.
            ``(B) Denial of deduction for previously deducted 
        amounts.--No deduction shall be allowed for any transfer under 
        this subsection of an amount for which a deduction was 
        previously allowed to the taxpayer (or a predecessor) or a 
        corresponding amount was not included in gross income of the 
        taxpayer (or a predecessor). For purposes of the preceding 
        sentence, a ratable portion of each transfer shall be treated 
        as being from previously deducted or excluded amounts to the 
        extent thereof.
            ``(C) Transfers of qualified funds.--If--
                ``(i) any transfer permitted by this subsection is made 
            to any Fund to which this section applies, and
                ``(ii) such Fund is transferred thereafter,
        any deduction under this subsection for taxable years ending 
        after the date that such Fund is transferred shall be allowed 
        to the transferor for the taxable year which includes such 
        date.
            ``(D) Special rules.--
                ``(i) Gain or loss not recognized on transfers to 
            fund.--No gain or loss shall be recognized on any transfer 
            described in paragraph (1).
                ``(ii) Transfers of appreciated property to fund.--If 
            appreciated property is transferred in a transfer described 
            in paragraph (1), the amount of the deduction shall not 
            exceed the adjusted basis of such property.
        ``(3) New ruling amount required.--Paragraph (1) shall not 
    apply to any transfer unless the taxpayer requests from the 
    Secretary a new schedule of ruling amounts in connection with such 
    transfer.
        ``(4) No basis in qualified funds.--Notwithstanding any other 
    provision of law, the taxpayer's basis in any Fund to which this 
    section applies shall not be increased by reason of any transfer 
    permitted by this subsection.''.
        (2) New ruling amount to take into account total costs.--
    Subparagraph (A) of section 468A(d)(2) (defining ruling amount) is 
    amended to read as follows:
            ``(A) fund the total nuclear decommissioning costs with 
        respect to such power plant over the estimated useful life of 
        such power plant, and''.
    (c) New Ruling Amount Required Upon License Renewal.--Paragraph (1) 
of section 468A(d) (relating to request required) is amended by adding 
at the end the following new sentence: ``For purposes of the preceding 
sentence, the taxpayer shall request a schedule of ruling amounts upon 
each renewal of the operating license of the nuclear powerplant.''.
    (d) Conforming Amendment.--Section 468A(e)(3) (relating to review 
of amount) is amended by striking ``The Fund'' and inserting ``Except 
as provided in subsection (f), the Fund''.
    (e) Technical Amendments.--Section 468A(e)(2) (relating to taxation 
of Fund) is amended--
        (1) by striking ``rate set forth in subparagraph (B)'' in 
    subparagraph (A) and inserting ``rate of 20 percent'',
        (2) by striking subparagraph (B), and
        (3) by redesignating subparagraphs (C) and (D) as subparagraphs 
    (B) and (C), respectively.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 1311. FIVE-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES.

    Paragraph (1) of section 172(b) (relating to net operating loss 
carrybacks and carryovers) is amended by adding at the end the 
following new subparagraph:
            ``(I) Transmission property and pollution control 
        investment.--
                ``(i) In general.--At the election of the taxpayer in 
            any taxable year ending after December 31, 2005, and before 
            January 1, 2009, in the case of a net operating loss in a 
            taxable year ending after December 31, 2002, and before 
            January 1, 2006, there shall be a net operating loss 
            carryback to each of the 5 years preceding the taxable year 
            of such loss to the extent that such loss does not exceed 
            20 percent of the sum of electric transmission property 
            capital expenditures and pollution control facility capital 
            expenditures of the taxpayer for the taxable year preceding 
            the taxable year in which such election is made.
                ``(ii) Limitations.--For purposes of this subsection--

                    ``(I) not more than one election may be made under 
                clause (i) with respect to any net operating loss in a 
                taxable year, and
                    ``(II) an election may not be made under clause (i) 
                for more than 1 taxable year beginning in any calendar 
                year.

                ``(iii) Coordination with ordering rule.--For purposes 
            of applying subsection (b)(2), the portion of any loss 
            which is carried back 5 years by reason of clause (i) shall 
            be treated in a manner similar to the manner in which a 
            specified liability loss is treated.
                ``(iv) Application for adjustment.--In the case of any 
            portion of a net operating loss to which an election under 
            clause (i) applies, an application under section 6411(a) 
            with respect to such loss shall not fail to be treated as 
            timely filed if filed within 24 months after the due date 
            specified under such section.
                ``(v) Special rules relating to refund.--For purposes 
            of a net operating loss to which an election under clause 
            (i) applies, references in sections 6501(h), 6511(d)(2)(A), 
            and 6611(f)(1) to the taxable year in which such net 
            operating loss arises or result in a net loss carryback 
            shall be treated as references to the taxable year in which 
            such election occurs.
                ``(vi) Definitions.--For purposes of this 
            subparagraph--

                    ``(I) Electric transmission property capital 
                expenditures.--The term `electric transmission property 
                capital expenditures' means any expenditure, chargeable 
                to capital account, made by the taxpayer which is 
                attributable to electric transmission property used by 
                the taxpayer in the transmission at 69 or more 
                kilovolts of electricity for sale. Such term shall not 
                include any expenditure which may be refunded or the 
                purpose of which may be modified at the option of the 
                taxpayer so as to cease to be treated as an expenditure 
                within the meaning of such term.
                    ``(II) Pollution control facility capital 
                expenditures.--The term `pollution control facility 
                capital expenditures' means any expenditure, chargeable 
                to capital account, made by an electric utility company 
                (as defined in section 2(3) of the Public Utility 
                Holding Company Act (15 U.S.C. 79b(3)), as in effect on 
                the day before the date of the enactment of the Energy 
                Tax Incentives Act of 2005) which is attributable to a 
                facility which will qualify as a certified pollution 
                control facility as determined under section 169(d)(1) 
                by striking `before January 1, 1976,' and by 
                substituting `an identifiable' for `a new 
                identifiable'. Such term shall not include any 
                expenditure which may be refunded or the purpose of 
                which may be modified at the option of the taxpayer so 
                as to cease to be treated as an expenditure within the 
                meaning of such term.''.

               Subtitle B--Domestic Fossil Fuel Security

SEC. 1321. EXTENSION OF CREDIT FOR PRODUCING FUEL FROM A 
              NONCONVENTIONAL SOURCE FOR FACILITIES PRODUCING COKE OR 
              COKE GAS.

    (a) In General.--Section 29 (relating to credit for producing fuel 
from a nonconventional source) is amended by adding at the end the 
following new subsection:
    ``(h) Extension for Facilities Producing Coke or Coke Gas.--
Notwithstanding subsection (f)--
        ``(1) In general.--In the case of a facility for producing coke 
    or coke gas which was placed in service before January 1, 1993, or 
    after June 30, 1998, and before January 1, 2010, this section shall 
    apply with respect to coke and coke gas produced in such facility 
    and sold during the period--
            ``(A) beginning on the later of January 1, 2006, or the 
        date that such facility is placed in service, and
            ``(B) ending on the date which is 4 years after the date 
        such period began.
        ``(2) Special rules.--In determining the amount of credit 
    allowable under this section solely by reason of this subsection--
            ``(A) Daily limit.--The amount of qualified fuels sold 
        during any taxable year which may be taken into account by 
        reason of this subsection with respect to any facility shall 
        not exceed an average barrel-of-oil equivalent of 4,000 barrels 
        per day. Days before the date the facility is placed in service 
        shall not be taken into account in determining such average.
            ``(B) Extension period to commence with unadjusted credit 
        amount.--For purposes of applying subsection (b)(2) to the $3 
        amount in subsection (a), in the case of fuels sold after 2005, 
        subsection (d)(2)(B) shall be applied by substituting `2004' 
        for `1979'.
            ``(C) Denial of double benefit.--This subsection shall not 
        apply to any facility producing qualified fuels for which a 
        credit was allowed under this section for the taxable year or 
        any preceding taxable year by reason of subsection (g).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel produced and sold after December 31, 2005, in taxable years 
ending after such date.

SEC. 1322. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A 
              NONCONVENTIONAL SOURCE.

    (a) Treatment as Business Credit.--
        (1) Credit moved to subpart relating to business related 
    credits.--The Internal Revenue Code of 1986 is amended by 
    redesignating section 29 as section 45K and by moving section 45K 
    (as so redesignated) from subpart B of part IV of subchapter A of 
    chapter 1 to the end of subpart D of part IV of subchapter A of 
    chapter 1.
        (2) Credit treated as business credit.--Section 38(b), as 
    amended by this Act, is amended by striking ``plus'' at the end of 
    paragraph (20), by striking the period at the end of paragraph (21) 
    and inserting ``, plus'', and by adding at the end the following:
        ``(22) the nonconventional source production credit determined 
    under section 45K(a).''.
        (3) Conforming amendments.--
            (A) Section 30(b)(3)(A) is amended by striking ``sections 
        27 and 29'' and inserting ``section 27''.
            (B) Sections 43(b)(2), 45I(b)(2)(C)(i), and 613A(c)(6)(C) 
        are each amended by striking ``section 29(d)(2)(C)'' and 
        inserting ``section 45K(d)(2)(C)''.
            (C) Section 45(e)(9), as added by this Act, is amended--
                (i) by striking ``section 29'' each place it appears 
            and inserting ``section 45K'', and
                (ii) by inserting ``(or under section 29, as in effect 
            on the day before the date of enactment of the Energy Tax 
            Incentives Act of 2005, for any prior taxable year)'' 
            before the period at the end thereof.
            (D) Section 45I is amended--
                (i) in subsection (c)(2)(A) by striking ``section 
            29(d)(5))'' and inserting ``section 45K(d)(5))'', and
                (ii) in subsection (d)(3) by striking ``section 29'' 
            both places it appears and inserting ``section 45K''.
            (E) Section 45K(a), as redesignated by paragraph (1), is 
        amended by striking ``There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year'' 
        and inserting ``For purposes of section 38, if the taxpayer 
        elects to have this section apply, the nonconventional source 
        production credit determined under this section for the taxable 
        year is''.
            (F) Section 45K(b), as so redesignated, is amended by 
        striking paragraph (6).
            (G) Section 53(d)(1)(B)(iii) is amended by striking ``under 
        section 29'' and all that follows through ``or not allowed''.
            (H) Section 55(c)(3) is amended by striking ``29(b)(6),''.
            (I) Subsection (a) of section 772 is amended by inserting 
        ``and'' at the end of paragraph (9), by striking paragraph 
        (10), and by redesignating paragraph (11) as paragraph (10).
            (J) Paragraph (5) of section 772(d) is amended by striking 
        ``the foreign tax credit, and the credit allowable under 
        section 29'' and inserting ``and the foreign tax credit''.
            (K) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by striking the item 
        relating to section 29.
            (L) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 45I the following new item:

``Sec. 45K. Credit for producing fuel from a nonconventional source.''.

    (b) Amendments Conforming to the Repeal of the Natural Gas Policy 
Act of 1978.--
        (1) In general.--Section 29(c)(2)(A) (before redesignation 
    under subsection (a) and as amended by section 1321) is amended--
            (A) by inserting ``(as in effect before the repeal of such 
        section)'' after ``1978'', and
            (B) by striking subsection (e) and redesignating 
        subsections (f), (g), and (h) as subsections (e), (f), and (g), 
        respectively.
        (2) Conforming amendments.--Section 29(g)(1) (before 
    redesignation under subsection (a) and paragraph (1) of this 
    subsection) is amended--
            (A) in subparagraph (A) by striking ``subsection 
        (f)(1)(B)'' and inserting ``subsection (e)(1)(B)'', and
            (B) in subparagraph (B) by striking ``subsection (f)'' and 
        inserting ``subsection (e)''.
    (c) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to credits determined 
    under the Internal Revenue Code of 1986 for taxable years ending 
    after December 31, 2005.
        (2) Subsection (b).--The amendments made by subsection (b) 
    shall take effect on the date of the enactment of this Act.

SEC. 1323. TEMPORARY EXPENSING FOR EQUIPMENT USED IN REFINING OF LIQUID 
              FUELS.

    (a) In General.--Part VI of subchapter B of chapter 1 is amended by 
inserting after section 179B the following new section:

``SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat 50 
percent of the cost of any qualified refinery property as an expense 
which is not chargeable to capital account. Any cost so treated shall 
be allowed as a deduction for the taxable year in which the qualified 
refinery property is placed in service.
    ``(b) Election.--
        ``(1) In general.--An election under this section for any 
    taxable year shall be made on the taxpayer's return of the tax 
    imposed by this chapter for the taxable year. Such election shall 
    be made in such manner as the Secretary may by regulations 
    prescribe.
        ``(2) Election irrevocable.--Any election made under this 
    section may not be revoked except with the consent of the 
    Secretary.
    ``(c) Qualified Refinery Property.--
        ``(1) In general.--The term `qualified refinery property' means 
    any portion of a qualified refinery--
            ``(A) the original use of which commences with the 
        taxpayer,
            ``(B) which is placed in service by the taxpayer after the 
        date of the enactment of this section and before January 1, 
        2012,
            ``(C) in the case any portion of a qualified refinery 
        (other than a qualified refinery which is separate from any 
        existing refinery), which meets the requirements of subsection 
        (e),
            ``(D) which meets all applicable environmental laws in 
        effect on the date such portion was placed in service,
            ``(E) no written binding contract for the construction of 
        which was in effect on or before June 14, 2005, and
            ``(F)(i) the construction of which is subject to a written 
        binding construction contract entered into before January 1, 
        2008,
            ``(ii) which is placed in service before January 1, 2008, 
        or
            ``(iii) in the case of self-constructed property, the 
        construction of which began after June 14, 2005, and before 
        January 1, 2008.
        ``(2) Special rule for sale-leasebacks.--For purposes of 
    paragraph (1)(A), if property is--
            ``(A) originally placed in service after the date of the 
        enactment of this section by a person, and
            ``(B) sold and leased back by such person within 3 months 
        after the date such property was originally placed in service,
    such property shall be treated as originally placed in service not 
    earlier than the date on which such property is used under the 
    leaseback referred to in subparagraph (B).
        ``(3) Effect of waiver under clean air act.--A waiver under the 
    Clean Air Act shall not be taken into account in determining 
    whether the requirements of paragraph (1)(D) are met.
    ``(d) Qualified Refinery.--For purposes of this section, the term 
`qualified refinery' means any refinery located in the United States 
which is designed to serve the primary purpose of processing liquid 
fuel from crude oil or qualified fuels (as defined in section 45K(c)).
    ``(e) Production Capacity.--The requirements of this subsection are 
met if the portion of the qualified refinery--
        ``(1) enables the existing qualified refinery to increase total 
    volume output (determined without regard to asphalt or lube oil) by 
    5 percent or more on an average daily basis, or
        ``(2) enables the existing qualified refinery to process 
    qualified fuels (as defined in section 45K(c)) at a rate which is 
    equal to or greater than 25 percent of the total throughput of such 
    qualified refinery on an average daily basis.
    ``(f) Ineligible Refinery Property.--No deduction shall be allowed 
under subsection (a) for any qualified refinery property--
        ``(1) the primary purpose of which is for use as a topping 
    plant, asphalt plant, lube oil facility, crude or product terminal, 
    or blending facility, or
        ``(2) which is built solely to comply with consent decrees or 
    projects mandated by Federal, State, or local governments.
    ``(g) Election to Allocate Deduction to Cooperative Owner.--
        ``(1) In general.--If--
            ``(A) a taxpayer to which subsection (a) applies is an 
        organization to which part I of subchapter T applies, and
            ``(B) one or more persons directly holding an ownership 
        interest in the taxpayer are organizations to which part I of 
        subchapter T apply,
    the taxpayer may elect to allocate all or a portion of the 
    deduction allowable under subsection (a) to such persons. Such 
    allocation shall be equal to the person's ratable share of the 
    total amount allocated, determined on the basis of the person's 
    ownership interest in the taxpayer. The taxable income of the 
    taxpayer shall not be reduced under section 1382 by reason of any 
    amount to which the preceding sentence applies.
        ``(2) Form and effect of election.--An election under paragraph 
    (1) for any taxable year shall be made on a timely filed return for 
    such year. Such election, once made, shall be irrevocable for such 
    taxable year.
        ``(3) Written notice to owners.--If any portion of the 
    deduction available under subsection (a) is allocated to owners 
    under paragraph (1), the cooperative shall provide any owner 
    receiving an allocation written notice of the amount of the 
    allocation. Such notice shall be provided before the date on which 
    the return described in paragraph (2) is due.
    ``(h) Reporting.--No deduction shall be allowed under subsection 
(a) to any taxpayer for any taxable year unless such taxpayer files 
with the Secretary a report containing such information with respect to 
the operation of the refineries of the taxpayer as the Secretary shall 
require.''.
    (b) Conforming Amendments.--
        (1) Section 1245(a) is amended by inserting ``179C,'' after 
    ``179B,'' both places it appears in paragraphs (2)(C) and (3)(C).
        (2) Section 263(a)(1) is amended by striking ``or'' at the end 
    of subparagraph (H), by striking the period at the end of 
    subparagraph (I) and inserting ``, or'', and by inserting after 
    subparagraph (I) the following new subparagraph:
            ``(J) expenditures for which a deduction is allowed under 
        section 179C.''.
        (3) Section 312(k)(3)(B) is amended by striking ``179 179A, or 
    179B'' each place it appears in the heading and text and inserting 
    ``179, 179A, 179B, or 179C''.
        (4) The table of sections for part VI of subchapter B of 
    chapter 1 is amended by inserting after the item relating to 
    section 179B the following new item:

``Sec. 179C. Election to expense certain refineries.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to properties placed in service after the date of the enactment 
of this Act.

SEC. 1324. PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS 
              INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING WITH 
              ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.

    (a) In General.--Section 179B (relating to deduction for capital 
costs incurred in complying with Environmental Protection Agency sulfur 
regulations) is amended by adding at the end the following new 
subsection:
    ``(e) Election to Allocate Deduction to Cooperative Owner.--
        ``(1) In general.--If--
            ``(A) a small business refiner to which subsection (a) 
        applies is an organization to which part I of subchapter T 
        applies, and
            ``(B) one or more persons directly holding an ownership 
        interest in the refiner are organizations to which part I of 
        subchapter T apply,
    the refiner may elect to allocate all or a portion of the deduction 
    allowable under subsection (a) to such persons. Such allocation 
    shall be equal to the person's ratable share of the total amount 
    allocated, determined on the basis of the person's ownership 
    interest in the taxpayer. The taxable income of the refiner shall 
    not be reduced under section 1382 by reason of any amount to which 
    the preceding sentence applies.
        ``(2) Form and effect of election.--An election under paragraph 
    (1) for any taxable year shall be made on a timely filed return for 
    such year. Such election, once made, shall be irrevocable for such 
    taxable year.
        ``(3) Written notice to owners.--If any portion of the 
    deduction available under subsection (a) is allocated to owners 
    under paragraph (1), the cooperative shall provide any owner 
    receiving an allocation written notice of the amount of the 
    allocation. Such notice shall be provided before the date on which 
    the return described in paragraph (2) is due.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendment made by section 338(a) of the 
American Jobs Creation Act of 2004.

SEC. 1325. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(E) (defining 15-year property), 
as amended by this Act, is amended by striking ``and'' at the end of 
clause (vi), by striking the period at the end of clause (vii) and by 
inserting ``, and'', and by adding at the end the following new clause:
                ``(viii) any natural gas distribution line the original 
            use of which commences with the taxpayer after April 11, 
            2005, and which is placed in service before January 1, 
            2011.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property assigned to 
classes), as amended by this Act, is amended by inserting after the 
item relating to subparagraph (E)(vii) the following new item:

 
 
 
``(E)(viii)................................................        35''.
 


    (c) Effective Date.--
        (1) In general.--The amendments made by this section shall 
    apply to property placed in service after April 11, 2005.
        (2) Exception.--The amendments made by this section shall not 
    apply to any property with respect to which the taxpayer or a 
    related party has entered into a binding contract for the 
    construction thereof on or before April 11, 2005, or, in the case 
    of self-constructed property, has started construction on or before 
    such date.

SEC. 1326. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) (relating to 
classification of certain property) is amended by striking ``and'' at 
the end of clause (iii), by redesignating clause (iv) as clause (v), 
and by inserting after clause (iii) the following new clause:
                ``(iv) any natural gas gathering line the original use 
            of which commences with the taxpayer after April 11, 2005, 
            and''.
    (b) Natural Gas Gathering Line.--Subsection (i) of section 168 is 
amended by inserting after paragraph (16) the following new paragraph:
        ``(17) Natural gas gathering line.--The term `natural gas 
    gathering line' means--
            ``(A) the pipe, equipment, and appurtenances determined to 
        be a gathering line by the Federal Energy Regulatory 
        Commission, and
            ``(B) the pipe, equipment, and appurtenances used to 
        deliver natural gas from the wellhead or a commonpoint to the 
        point at which such gas first reaches--
                ``(i) a gas processing plant,
                ``(ii) an interconnection with a transmission pipeline 
            for which a certificate as an interstate transmission 
            pipeline has been issued by the Federal Energy Regulatory 
            Commission,
                ``(iii) an interconnection with an intrastate 
            transmission pipeline, or
                ``(iv) a direct interconnection with a local 
            distribution company, a gas storage facility, or an 
            industrial consumer.''.
    (c) Alternative System.--The table contained in section 
168(g)(3)(B) (relating to special rule for certain property assigned to 
classes), as amended by this Act, is amended by inserting after the 
item relating to subparagraph (C)(iii) the following new item:

 
 
 
``(C)(iv)..................................................        14''.
 


    (d) Alternative Minimum Tax Exception.--Subparagraph (B) of section 
56(a)(1) is amended by inserting before the period the following: ``, 
or in section 168(e)(3)(C)(iv)''.
    (e) Effective Date.--
        (1) In general.--The amendments made by this section shall 
    apply to property placed in service after April 11, 2005.
        (2) Exception.--The amendments made by this section shall not 
    apply to any property with respect to which the taxpayer or a 
    related party has entered into a binding contract for the 
    construction thereof on or before April 11, 2005, or, in the case 
    of self-constructed property, has started construction on or before 
    such date.

SEC. 1327. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.

    (a) In General.--Subsection (b) of section 148 (relating to higher 
yielding investments) is amended by adding at the end the following new 
paragraph:
        ``(4) Safe harbor for prepaid natural gas.--
            ``(A) In general.--The term `investment-type property' does 
        not include a prepayment under a qualified natural gas supply 
        contract.
            ``(B) Qualified natural gas supply contract.--For purposes 
        of this paragraph, the term `qualified natural gas supply 
        contract' means any contract to acquire natural gas for resale 
        by a utility owned by a governmental unit if the amount of gas 
        permitted to be acquired under the contract by the utility 
        during any year does not exceed the sum of--
                ``(i) the annual average amount during the testing 
            period of natural gas purchased (other than for resale) by 
            customers of such utility who are located within the 
            service area of such utility, and
                ``(ii) the amount of natural gas to be used to 
            transport the prepaid natural gas to the utility during 
            such year.
            ``(C) Natural gas used to generate electricity.--Natural 
        gas used to generate electricity shall be taken into account in 
        determining the average under subparagraph (B)(i)--
                ``(i) only if the electricity is generated by a utility 
            owned by a governmental unit, and
                ``(ii) only to the extent that the electricity is sold 
            (other than for resale) to customers of such utility who 
            are located within the service area of such utility.
            ``(D) Adjustments for changes in customer base.--
                ``(i) New business customers.--If--

                    ``(I) after the close of the testing period and 
                before the date of issuance of the issue, the utility 
                owned by a governmental unit enters into a contract to 
                supply natural gas (other than for resale) for a 
                business use at a property within the service area of 
                such utility, and
                    ``(II) the utility did not supply natural gas to 
                such property during the testing period or the ratable 
                amount of natural gas to be supplied under the contract 
                is significantly greater than the ratable amount of gas 
                supplied to such property during the testing period,

            then a contract shall not fail to be treated as a qualified 
            natural gas supply contract by reason of supplying the 
            additional natural gas under the contract referred to in 
            subclause (I).
                ``(ii) Lost customers.--The average under subparagraph 
            (B)(i) shall not exceed the annual amount of natural gas 
            reasonably expected to be purchased (other than for resale) 
            by persons who are located within the service area of such 
            utility and who, as of the date of issuance of the issue, 
            are customers of such utility.
            ``(E) Ruling requests.--The Secretary may increase the 
        average under subparagraph (B)(i) for any period if the utility 
        owned by the governmental unit establishes to the satisfaction 
        of the Secretary that, based on objective evidence of growth in 
        natural gas consumption or population, such average would 
        otherwise be insufficient for such period.
            ``(F) Adjustment for natural gas otherwise on hand.--
                ``(i) In general.--The amount otherwise permitted to be 
            acquired under the contract for any period shall be reduced 
            by--

                    ``(I) the applicable share of natural gas held by 
                the utility on the date of issuance of the issue, and
                    ``(II) the natural gas (not taken into account 
                under subclause (I)) which the utility has a right to 
                acquire during such period (determined as of the date 
                of issuance of the issue).

                ``(ii) Applicable share.--For purposes of the clause 
            (i), the term `applicable share' means, with respect to any 
            period, the natural gas allocable to such period if the gas 
            were allocated ratably over the period to which the 
            prepayment relates.
            ``(G) Intentional acts.--Subparagraph (A) shall cease to 
        apply to any issue if the utility owned by the governmental 
        unit engages in any intentional act to render the volume of 
        natural gas acquired by such prepayment to be in excess of the 
        sum of--
                ``(i) the amount of natural gas needed (other than for 
            resale) by customers of such utility who are located within 
            the service area of such utility, and
                ``(ii) the amount of natural gas used to transport such 
            natural gas to the utility.
            ``(H) Testing period.--For purposes of this paragraph, the 
        term `testing period' means, with respect to an issue, the most 
        recent 5 calendar years ending before the date of issuance of 
        the issue.
            ``(I) Service area.--For purposes of this paragraph, the 
        service area of a utility owned by a governmental unit shall be 
        comprised of--
                ``(i) any area throughout which such utility provided 
            at all times during the testing period--

                    ``(I) in the case of a natural gas utility, natural 
                gas transmission or distribution services, and
                    ``(II) in the case of an electric utility, 
                electricity distribution services,

                ``(ii) any area within a county contiguous to the area 
            described in clause (i) in which retail customers of such 
            utility are located if such area is not also served by 
            another utility providing natural gas or electricity 
            services, as the case may be, and
                ``(iii) any area recognized as the service area of such 
            utility under State or Federal law.''.
    (b) Private Loan Financing Test Not to Apply to Prepayments for 
Natural Gas.--Paragraph (2) of section 141(c) (providing exceptions to 
the private loan financing test) is amended by striking ``or'' at the 
end of subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, or'', and by adding at the end the 
following new subparagraph:
            ``(C) is a qualified natural gas supply contract (as 
        defined in section 148(b)(4)).''.
    (c) Exception for Qualified Electric and Natural Gas Supply 
Contracts.--Section 141(d) is amended by adding at the end the 
following new paragraph:
        ``(7) Exception for qualified electric and natural gas supply 
    contracts.--The term `nongovernmental output property' shall not 
    include any contract for the prepayment of electricity or natural 
    gas which is not investment property under section 148(b)(2).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 1328. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION 
              DEDUCTION.

    (a) In General.--Paragraph (4) of section 613A(d) (relating to 
limitations on application of subsection (c)) is amended to read as 
follows:
        ``(4) Certain refiners excluded.--If the taxpayer or one or 
    more related persons engages in the refining of crude oil, 
    subsection (c) shall not apply to the taxpayer for a taxable year 
    if the average daily refinery runs of the taxpayer and such persons 
    for the taxable year exceed 75,000 barrels. For purposes of this 
    paragraph, the average daily refinery runs for any taxable year 
    shall be determined by dividing the aggregate refinery runs for the 
    taxable year by the number of days in the taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

SEC. 1329. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 167 (relating to depreciation) is amended 
by redesignating subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection:
    ``(h) Amortization of Geological and Geophysical Expenditures.--
        ``(1) In general.--Any geological and geophysical expenses paid 
    or incurred in connection with the exploration for, or development 
    of, oil or gas within the United States (as defined in section 638) 
    shall be allowed as a deduction ratably over the 24-month period 
    beginning on the date that such expense was paid or incurred.
        ``(2) Half-year convention.--For purposes of paragraph (1), any 
    payment paid or incurred during the taxable year shall be treated 
    as paid or incurred on the mid-point of such taxable year.
        ``(3) Exclusive method.--Except as provided in this subsection, 
    no depreciation or amortization deduction shall be allowed with 
    respect to such payments.
        ``(4) Treatment upon abandonment.--If any property with respect 
    to which geological and geophysical expenses are paid or incurred 
    is retired or abandoned during the 24-month period described in 
    paragraph (1), no deduction shall be allowed on account of such 
    retirement or abandonment and the amortization deduction under this 
    subsection shall continue with respect to such payment.''.
    (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
inserting ``167(h),'' after ``under section''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

       Subtitle C--Conservation and Energy Efficiency Provisions

SEC. 1331. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--Part VI of subchapter B of chapter 1 (relating to 
itemized deductions for individuals and corporations), as amended by 
this Act, is amended by inserting after section 179C the following new 
section:

``SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to the cost of energy efficient commercial building property 
placed in service during the taxable year.
    ``(b) Maximum Amount of Deduction.--The deduction under subsection 
(a) with respect to any building for any taxable year shall not exceed 
the excess (if any) of--
        ``(1) the product of--
            ``(A) $1.80, and
            ``(B) the square footage of the building, over
        ``(2) the aggregate amount of the deductions under subsection 
    (a) with respect to the building for all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
        ``(1) Energy efficient commercial building property.--The term 
    `energy efficient commercial building property' means property--
            ``(A) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable,
            ``(B) which is installed on or in any building which is--
                ``(i) located in the United States, and
                ``(ii) within the scope of Standard 90.1-2001,
            ``(C) which is installed as part of--
                ``(i) the interior lighting systems,
                ``(ii) the heating, cooling, ventilation, and hot water 
            systems, or
                ``(iii) the building envelope, and
            ``(D) which is certified in accordance with subsection 
        (d)(6) as being installed as part of a plan designed to reduce 
        the total annual energy and power costs with respect to the 
        interior lighting systems, heating, cooling, ventilation, and 
        hot water systems of the building by 50 percent or more in 
        comparison to a reference building which meets the minimum 
        requirements of Standard 90.1-2001 using methods of calculation 
        under subsection (d)(2).
        ``(2) Standard 90.1-2001.--The term `Standard 90.1-2001' means 
    Standard 90.1-2001 of the American Society of Heating, 
    Refrigerating, and Air Conditioning Engineers and the Illuminating 
    Engineering Society of North America (as in effect on April 2, 
    2003).
    ``(d) Special Rules.--
        ``(1) Partial allowance.--
            ``(A) In general.--Except as provided in subsection (f), 
        if--
                ``(i) the requirement of subsection (c)(1)(D) is not 
            met, but
                ``(ii) there is a certification in accordance with 
            paragraph (6) that any system referred to in subsection 
            (c)(1)(C) satisfies the energy-savings targets established 
            by the Secretary under subparagraph (B) with respect to 
            such system,
        then the requirement of subsection (c)(1)(D) shall be treated 
        as met with respect to such system, and the deduction under 
        subsection (a) shall be allowed with respect to energy 
        efficient commercial building property installed as part of 
        such system and as part of a plan to meet such targets, except 
        that subsection (b) shall be applied to such property by 
        substituting `$.60' for `$1.80'.
            ``(B) Regulations.--The Secretary, after consultation with 
        the Secretary of Energy, shall establish a target for each 
        system described in subsection (c)(1)(C) which, if such targets 
        were met for all such systems, the building would meet the 
        requirements of subsection (c)(1)(D).
        ``(2) Methods of calculation.--The Secretary, after 
    consultation with the Secretary of Energy, shall promulgate 
    regulations which describe in detail methods for calculating and 
    verifying energy and power consumption and cost, based on the 
    provisions of the 2005 California Nonresidential Alternative 
    Calculation Method Approval Manual.
        ``(3) Computer software.--
            ``(A) In general.--Any calculation under paragraph (2) 
        shall be prepared by qualified computer software.
            ``(B) Qualified computer software.--For purposes of this 
        paragraph, the term `qualified computer software' means 
        software--
                ``(i) for which the software designer has certified 
            that the software meets all procedures and detailed methods 
            for calculating energy and power consumption and costs as 
            required by the Secretary,
                ``(ii) which provides such forms as required to be 
            filed by the Secretary in connection with energy efficiency 
            of property and the deduction allowed under this section, 
            and
                ``(iii) which provides a notice form which documents 
            the energy efficiency features of the building and its 
            projected annual energy costs.
        ``(4) Allocation of deduction for public property.--In the case 
    of energy efficient commercial building property installed on or in 
    property owned by a Federal, State, or local government or a 
    political subdivision thereof, the Secretary shall promulgate a 
    regulation to allow the allocation of the deduction to the person 
    primarily responsible for designing the property in lieu of the 
    owner of such property. Such person shall be treated as the 
    taxpayer for purposes of this section.
        ``(5) Notice to owner.--Each certification required under this 
    section shall include an explanation to the building owner 
    regarding the energy efficiency features of the building and its 
    projected annual energy costs as provided in the notice under 
    paragraph (3)(B)(iii).
        ``(6) Certification.--
            ``(A) In general.--The Secretary shall prescribe the manner 
        and method for the making of certifications under this section.
            ``(B) Procedures.--The Secretary shall include as part of 
        the certification process procedures for inspection and testing 
        by qualified individuals described in subparagraph (C) to 
        ensure compliance of buildings with energy-savings plans and 
        targets. Such procedures shall be comparable, given the 
        difference between commercial and residential buildings, to the 
        requirements in the Mortgage Industry National Accreditation 
        Procedures for Home Energy Rating Systems.
            ``(C) Qualified individuals.--Individuals qualified to 
        determine compliance shall be only those individuals who are 
        recognized by an organization certified by the Secretary for 
        such purposes.
    ``(e) Basis Reduction.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to any energy 
efficient commercial building property, the basis of such property 
shall be reduced by the amount of the deduction so allowed.
    ``(f) Interim Rules for Lighting Systems.--Until such time as the 
Secretary issues final regulations under subsection (d)(1)(B) with 
respect to property which is part of a lighting system--
        ``(1) In general.--The lighting system target under subsection 
    (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 
    percent (50 percent in the case of a warehouse) of the minimum 
    requirements in Table 9.3.1.1 or Table 9.3.1.2 (not including 
    additional interior lighting power allowances) of Standard 90.1-
    2001.
        ``(2) Reduction in deduction if reduction less than 40 
    percent.--
            ``(A) In general.--If, with respect to the lighting system 
        of any building other than a warehouse, the reduction in 
        lighting power density of the lighting system is not at least 
        40 percent, only the applicable percentage of the amount of 
        deduction otherwise allowable under this section with respect 
        to such property shall be allowed.
            ``(B) Applicable percentage.--For purposes of subparagraph 
        (A), the applicable percentage is the number of percentage 
        points (not greater than 100) equal to the sum of--
                ``(i) 50, and
                ``(ii) the amount which bears the same ratio to 50 as 
            the excess of the reduction of lighting power density of 
            the lighting system over 25 percentage points bears to 15.
            ``(C) Exceptions.--This subsection shall not apply to any 
        system--
                ``(i) the controls and circuiting of which do not 
            comply fully with the mandatory and prescriptive 
            requirements of Standard 90.1-2001 and which do not include 
            provision for bilevel switching in all occupancies except 
            hotel and motel guest rooms, store rooms, restrooms, and 
            public lobbies, or
                ``(ii) which does not meet the minimum requirements for 
            calculated lighting levels as set forth in the Illuminating 
            Engineering Society of North America Lighting Handbook, 
            Performance and Application, Ninth Edition, 2000.
    ``(g) Regulations.--The Secretary shall promulgate such regulations 
as necessary--
        ``(1) to take into account new technologies regarding energy 
    efficiency and renewable energy for purposes of determining energy 
    efficiency and savings under this section, and
        ``(2) to provide for a recapture of the deduction allowed under 
    this section if the plan described in subsection (c)(1)(D) or 
    (d)(1)(A) is not fully implemented.
    ``(h) Termination.--This section shall not apply with respect to 
property placed in service after December 31, 2007.''.
    (b) Conforming Amendments.--
        (1) Section 1016(a) is amended by striking ``and'' at the end 
    of paragraph (30), by striking the period at the end of paragraph 
    (31) and inserting ``, and'', and by adding at the end the 
    following new paragraph:
        ``(32) to the extent provided in section 179D(e).''.
        (2) Section 1245(a), as amended by this Act, is amended by 
    inserting ``179D,'' after ``179C,'' both places it appears in 
    paragraphs (2)(C) and (3)(C).
        (3) Section 1250(b)(3) is amended by inserting before the 
    period at the end of the first sentence ``or by section 179D''.
        (4) Section 263(a)(1), as amended by this Act, is amended by 
    striking ``or'' at the end of subparagraph (I), by striking the 
    period at the end of subparagraph (J) and inserting ``, or'', and 
    by inserting after subparagraph (J) the following new subparagraph:
            ``(K) expenditures for which a deduction is allowed under 
        section 179D.''.
        (5) Section 312(k)(3)(B), as amended by this Act, is amended by 
    striking ``179, 179A, 179B, or 179C'' each place it appears in the 
    heading and text and inserting ``179, 179A, 179B, 179C, or 179D''.
    (c) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1, as amended by this Act, is amended by 
inserting after section 179C the following new item:

    ``Sec. 179D. Energy efficient commercial buildings deduction.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005.

SEC. 1332. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT HOMES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits), as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.

    ``(a) Allowance of Credit.--
        ``(1) In general.--For purposes of section 38, in the case of 
    an eligible contractor, the new energy efficient home credit for 
    the taxable year is the applicable amount for each qualified new 
    energy efficient home which is--
            ``(A) constructed by the eligible contractor, and
            ``(B) acquired by a person from such eligible contractor 
        for use as a residence during the taxable year.
        ``(2) Applicable amount.--For purposes of paragraph (1), the 
    applicable amount is an amount equal to--
            ``(A) in the case of a dwelling unit described in paragraph 
        (1) or (2) of subsection (c), $2,000, and
            ``(B) in the case of a dwelling unit described in paragraph 
        (3) of subsection (c), $1,000.
    ``(b) Definitions.--For purposes of this section--
        ``(1) Eligible contractor.--The term `eligible contractor' 
    means--
            ``(A) the person who constructed the qualified new energy 
        efficient home, or
            ``(B) in the case of a qualified new energy efficient home 
        which is a manufactured home, the manufactured home producer of 
        such home.
        ``(2) Qualified new energy efficient home.--The term `qualified 
    new energy efficient home' means a dwelling unit--
            ``(A) located in the United States,
            ``(B) the construction of which is substantially completed 
        after the date of the enactment of this section, and
            ``(C) which meets the energy saving requirements of 
        subsection (c).
        ``(3) Construction.--The term `construction' includes 
    substantial reconstruction and rehabilitation.
        ``(4) Acquire.--The term `acquire' includes purchase.
    ``(c) Energy Saving Requirements.--A dwelling unit meets the energy 
saving requirements of this subsection if such unit is--
        ``(1) certified--
            ``(A) to have a level of annual heating and cooling energy 
        consumption which is at least 50 percent below the annual level 
        of heating and cooling energy consumption of a comparable 
        dwelling unit--
                ``(i) which is constructed in accordance with the 
            standards of chapter 4 of the 2003 International Energy 
            Conservation Code, as such Code (including supplements) is 
            in effect on the date of the enactment of this section, and
                ``(ii) for which the heating and cooling equipment 
            efficiencies correspond to the minimum allowed under the 
            regulations established by the Department of Energy 
            pursuant to the National Appliance Energy Conservation Act 
            of 1987 and in effect at the time of completion of 
            construction, and
            ``(B) to have building envelope component improvements 
        account for at least \1/5\ of such 50 percent,
        ``(2) a manufactured home which conforms to Federal 
    Manufactured Home Construction and Safety Standards (section 3280 
    of title 24, Code of Federal Regulations) and which meets the 
    requirements of paragraph (1), or
        ``(3) a manufactured home which conforms to Federal 
    Manufactured Home Construction and Safety Standards (section 3280 
    of title 24, Code of Federal Regulations) and which--
            ``(A) meets the requirements of paragraph (1) applied by 
        substituting `30 percent' for `50 percent' both places it 
        appears therein and by substituting `\1/3\' for `\1/5\' in 
        subparagraph (B) thereof, or
            ``(B) meets the requirements established by the 
        Administrator of the Environmental Protection Agency under the 
        Energy Star Labeled Homes program.
    ``(d) Certification.--
        ``(1) Method of certification.--A certification described in 
    subsection (c) shall be made in accordance with guidance prescribed 
    by the Secretary, after consultation with the Secretary of Energy. 
    Such guidance shall specify procedures and methods for calculating 
    energy and cost savings.
        ``(2) Form.--Any certification described in subsection (c) 
    shall be made in writing in a manner which specifies in readily 
    verifiable fashion the energy efficient building envelope 
    components and energy efficient heating or cooling equipment 
    installed and their respective rated energy efficiency performance.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section in connection with any expenditure for 
any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so determined.
    ``(f) Coordination With Investment Credit.--For purposes of this 
section, expenditures taken into account under section 47 or 48(a) 
shall not be taken into account under this section.
    ``(g) Termination.--This section shall not apply to any qualified 
new energy efficient home acquired after December 31, 2007.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) 
(relating to current year business credit), as amended by this Act, is 
amended by striking ``plus'' at the end of paragraph (21), by striking 
the period at the end of paragraph (22) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
        ``(23) the new energy efficient home credit determined under 
    section 45L(a).''.
    (c) Basis Adjustment.--Subsection (a) of section 1016, as amended 
by this Act, is amended by striking ``and'' at the end of paragraph 
(31), by striking the period at the end of paragraph (32) and inserting 
``, and'', and by adding at the end the following new paragraph:
        ``(33) to the extent provided in section 45L(e), in the case of 
    amounts with respect to which a credit has been allowed under 
    section 45L.''.
    (d) Deduction for Certain Unused Business Credits.--Section 196(c) 
(defining qualified business credits) is amended by striking ``and'' at 
the end of paragraph (11), by striking the period at the end of 
paragraph (12) and inserting ``, and'', and by adding after paragraph 
(12) the following new paragraph:
        ``(13) the new energy efficient home credit determined under 
    section 45L(a).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1, as amended by this Act, is 
amended by adding at the end the following new item:

    ``Sec. 45L. New energy efficient home credit.''.

    (f) Effective Date.--The amendments made by this section shall 
apply to qualified new energy efficient homes acquired after December 
31, 2005, in taxable years ending after such date.

SEC. 1333. CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
(relating to nonrefundable personal credits) is amended by inserting 
after section 25B the following new section:

``SEC. 25C. NONBUSINESS ENERGY PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of--
        ``(1) 10 percent of the amount paid or incurred by the taxpayer 
    for qualified energy efficiency improvements installed during such 
    taxable year, and
        ``(2) the amount of the residential energy property 
    expenditures paid or incurred by the taxpayer during such taxable 
    year.
    ``(b) Limitations.--
        ``(1) Lifetime limitation.--The credit allowed under this 
    section with respect to any taxpayer for any taxable year shall not 
    exceed the excess (if any) of $500 over the aggregate credits 
    allowed under this section with respect to such taxpayer for all 
    prior taxable years.
        ``(2) Windows.--In the case of amounts paid or incurred for 
    components described in subsection (c)(3)(B) by any taxpayer for 
    any taxable year, the credit allowed under this section with 
    respect to such amounts for such year shall not exceed the excess 
    (if any) of $200 over the aggregate credits allowed under this 
    section with respect to such amounts for all prior taxable years.
        ``(3) Limitation on residential energy property expenditures.--
    The amount of the credit allowed under this section by reason of 
    subsection (a)(2) shall not exceed--
            ``(A) $50 for any advanced main air circulating fan,
            ``(B) $150 for any qualified natural gas, propane, or oil 
        furnace or hot water boiler, and
            ``(C) $300 for any item of energy-efficient building 
        property.
    ``(c) Qualified Energy Efficiency Improvements.--For purposes of 
this section--
        ``(1) In general.--The term `qualified energy efficiency 
    improvements' means any energy efficient building envelope 
    component which meets the prescriptive criteria for such component 
    established by the 2000 International Energy Conservation Code, as 
    such Code (including supplements) is in effect on the date of the 
    enactment of this section (or, in the case of a metal roof with 
    appropriate pigmented coatings which meet the Energy Star program 
    requirements), if--
            ``(A) such component is installed in or on a dwelling unit 
        located in the United States and owned and used by the taxpayer 
        as the taxpayer's principal residence (within the meaning of 
        section 121),
            ``(B) the original use of such component commences with the 
        taxpayer, and
            ``(C) such component reasonably can be expected to remain 
        in use for at least 5 years.
        ``(2) Building envelope component.--The term `building envelope 
    component' means--
            ``(A) any insulation material or system which is 
        specifically and primarily designed to reduce the heat loss or 
        gain of a dwelling unit when installed in or on such dwelling 
        unit,
            ``(B) exterior windows (including skylights),
            ``(C) exterior doors, and
            ``(D) any metal roof installed on a dwelling unit, but only 
        if such roof has appropriate pigmented coatings which are 
        specifically and primarily designed to reduce the heat gain of 
        such dwelling unit.
        ``(3) Manufactured homes included.--The term `dwelling unit' 
    includes a manufactured home which conforms to Federal Manufactured 
    Home Construction and Safety Standards (section 3280 of title 24, 
    Code of Federal Regulations).
    ``(d) Residential Energy Property Expenditures.--For purposes of 
this section--
        ``(1) In general.--The term `residential energy property 
    expenditures' means expenditures made by the taxpayer for qualified 
    energy property which is--
            ``(A) installed on or in connection with a dwelling unit 
        located in the United States and owned and used by the taxpayer 
        as the taxpayer's principal residence (within the meaning of 
        section 121), and
            ``(B) originally placed in service by the taxpayer.
    Such term includes expenditures for labor costs properly allocable 
    to the onsite preparation, assembly, or original installation of 
    the property.
        ``(2) Qualified energy property.--
            ``(A) In general.--The term `qualified energy property' 
        means--
                ``(i) energy-efficient building property,
                ``(ii) a qualified natural gas, propane, or oil furnace 
            or hot water boiler, or
                ``(iii) an advanced main air circulating fan.
            ``(B) Performance and quality standards.--Property 
        described under subparagraph (A) shall meet the performance and 
        quality standards, and the certification requirements (if any), 
        which--
                ``(i) have been prescribed by the Secretary by 
            regulations (after consultation with the Secretary of 
            Energy or the Administrator of the Environmental Protection 
            Agency, as appropriate), and
                ``(ii) are in effect at the time of the acquisition of 
            the property, or at the time of the completion of the 
            construction, reconstruction, or erection of the property, 
            as the case may be.
            ``(C) Requirements for standards.--The standards and 
        requirements prescribed by the Secretary under subparagraph 
        (B)--
                ``(i) in the case of the energy efficiency ratio (EER) 
            for central air conditioners and electric heat pumps--

                    ``(I) shall require measurements to be based on 
                published data which is tested by manufacturers at 95 
                degrees Fahrenheit, and
                    ``(II) may be based on the certified data of the 
                Air Conditioning and Refrigeration Institute that are 
                prepared in partnership with the Consortium for Energy 
                Efficiency, and

                ``(ii) in the case of geothermal heat pumps--

                    ``(I) shall be based on testing under the 
                conditions of ARI/ISO Standard 13256-1 for Water Source 
                Heat Pumps or ARI 870 for Direct Expansion GeoExchange 
                Heat Pumps (DX), as appropriate, and
                    ``(II) shall include evidence that water heating 
                services have been provided through a desuperheater or 
                integrated water heating system connected to the 
                storage water heater tank.

        ``(3) Energy-efficient building property.--The term `energy-
    efficient building property' means--
            ``(A) an electric heat pump water heater which yields an 
        energy factor of at least 2.0 in the standard Department of 
        Energy test procedure,
            ``(B) an electric heat pump which has a heating seasonal 
        performance factor (HSPF) of at least 9, a seasonal energy 
        efficiency ratio (SEER) of at least 15, and an energy 
        efficiency ratio (EER) of at least 13,
            ``(C) a geothermal heat pump which--
                ``(i) in the case of a closed loop product, has an 
            energy efficiency ratio (EER) of at least 14.1 and a 
            heating coefficient of performance (COP) of at least 3.3,
                ``(ii) in the case of an open loop product, has an 
            energy efficiency ratio (EER) of at least 16.2 and a 
            heating coefficient of performance (COP) of at least 3.6, 
            and
                ``(iii) in the case of a direct expansion (DX) product, 
            has an energy efficiency ratio (EER) of at least 15 and a 
            heating coefficient of performance (COP) of at least 3.5,
            ``(D) a central air conditioner which achieves the highest 
        efficiency tier established by the Consortium for Energy 
        Efficiency, as in effect on January 1, 2006, and
            ``(E) a natural gas, propane, or oil water heater which has 
        an energy factor of at least 0.80.
        ``(4) Qualified natural gas, propane, or oil furnace or hot 
    water boiler.--The term `qualified natural gas, propane, or oil 
    furnace or hot water boiler' means a natural gas, propane, or oil 
    furnace or hot water boiler which achieves an annual fuel 
    utilization efficiency rate of not less than 95.
        ``(5) Advanced main air circulating fan.--The term `advanced 
    main air circulating fan' means a fan used in a natural gas, 
    propane, or oil furnace and which has an annual electricity use of 
    no more than 2 percent of the total annual energy use of the 
    furnace (as determined in the standard Department of Energy test 
    procedures).
    ``(e) Special Rules.--For purposes of this section--
        ``(1) Application of rules.--Rules similar to the rules under 
    paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) shall 
    apply.
        ``(2) Joint ownership of energy items.--
            ``(A) In general.--Any expenditure otherwise qualifying as 
        an expenditure under this section shall not be treated as 
        failing to so qualify merely because such expenditure was made 
        with respect to two or more dwelling units.
            ``(B) Limits applied separately.--In the case of any 
        expenditure described in subparagraph (A), the amount of the 
        credit allowable under subsection (a) shall (subject to 
        paragraph (1)) be computed separately with respect to the 
        amount of the expenditure made for each dwelling unit.
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(g) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2007.''.
    (b) Conforming Amendments.--
        (1) Subsection (a) of section 1016, as amended by this Act, is 
    amended by striking ``and'' at the end of paragraph (32), by 
    striking the period at the end of paragraph (33) and inserting ``, 
    and'', and by adding at the end the following new paragraph:
        ``(34) to the extent provided in section 25C(e), in the case of 
    amounts with respect to which a credit has been allowed under 
    section 25C.''.
        (2) The table of sections for subpart A of part IV of 
    subchapter A of chapter 1 is amended by inserting after the item 
    relating to section 25B the following new item:

    ``Sec. 25C. Nonbusiness energy property.''.

    (c) Effective Dates.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005.

SEC. 1334. CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business-related credits), as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--
        ``(1) In general.--For purposes of section 38, the energy 
    efficient appliance credit determined under this section for any 
    taxable year is an amount equal to the sum of the credit amounts 
    determined under paragraph (2) for each type of qualified energy 
    efficient appliance produced by the taxpayer during the calendar 
    year ending with or within the taxable year.
        ``(2) Credit amounts.--The credit amount determined for any 
    type of qualified energy efficient appliance is--
            ``(A) the applicable amount determined under subsection (b) 
        with respect to such type, multiplied by
            ``(B) the eligible production for such type.
    ``(b) Applicable Amount.--
        ``(1) In general.--For purposes of subsection (a)--
            ``(A) Dishwashers.--The applicable amount is the energy 
        savings amount in the case of a dishwasher which--
                ``(i) is manufactured in calendar year 2006 or 2007, 
            and
                ``(ii) meets the requirements of the Energy Star 
            program which are in effect for dishwashers in 2007.
            ``(B) Clothes washers.--The applicable amount is $100 in 
        the case of a clothes washer which--
                ``(i) is manufactured in calendar year 2006 or 2007, 
            and
                ``(ii) meets the requirements of the Energy Star 
            program which are in effect for clothes washers in 2007.
            ``(C) Refrigerators.--
                ``(i) 15 percent savings.--The applicable amount is $75 
            in the case of a refrigerator which--

                    ``(I) is manufactured in calendar year 2006, and
                    ``(II) consumes at least 15 percent but not more 
                than 20 percent less kilowatt hours per year than the 
                2001 energy conservation standards.

                ``(ii) 20 percent savings.--The applicable amount is 
            $125 in the case of a refrigerator which--

                    ``(I) is manufactured in calendar year 2006 or 
                2007, and
                    ``(II) consumes at least 20 percent but not more 
                than 25 percent less kilowatt hours per year than the 
                2001 energy conservation standards.

                ``(iii) 25 percent savings.--The applicable amount is 
            $175 in the case of a refrigerator which--

                    ``(I) is manufactured in calendar year 2006 or 
                2007, and
                    ``(II) consumes at least 25 percent less kilowatt 
                hours per year than the 2001 energy conservation 
                standards.

        ``(2) Energy savings amount.--For purposes of paragraph 
    (1)(A)--
            ``(A) In general.--The energy savings amount is the lesser 
        of--
                ``(i) the product of--

                    ``(I) $3, and
                    ``(II) 100 multiplied by the energy savings 
                percentage, or

                ``(ii) $100.
            ``(B) Energy savings percentage.--For purposes of 
        subparagraph (A), the energy savings percentage is the ratio 
        of--
                ``(i) the EF required by the Energy Star program for 
            dishwashers in 2007 minus the EF required by the Energy 
            Star program for dishwashers in 2005, to
                ``(ii) the EF required by the Energy Star program for 
            dishwashers in 2007.
    ``(c) Eligible Production.--
        ``(1) In general.--Except as provided in paragraphs (2), the 
    eligible production in a calendar year with respect to each type of 
    energy efficient appliance is the excess of--
            ``(A) the number of appliances of such type which are 
        produced by the taxpayer in the United States during such 
        calendar year, over
            ``(B) the average number of appliances of such type which 
        were produced by the taxpayer (or any predecessor) in the 
        United States during the preceding 3-calendar year period.
        ``(2) Special rule for refrigerators.--The eligible production 
    in a calendar year with respect to each type of refrigerator 
    described in subsection (b)(1)(C) is the excess of--
            ``(A) the number of appliances of such type which are 
        produced by the taxpayer in the United States during such 
        calendar year, over
            ``(B) 110 percent of the average number of appliances of 
        such type which were produced by the taxpayer (or any 
        predecessor) in the United States during the preceding 3-
        calendar year period.
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
        ``(1) dishwashers described in subsection (b)(1)(A),
        ``(2) clothes washers described in subsection (b)(1)(B),
        ``(3) refrigerators described in subsection (b)(1)(C)(i),
        ``(4) refrigerators described in subsection (b)(1)(C)(ii), and
        ``(5) refrigerators described in subsection (b)(1)(C)(iii).
    ``(e) Limitations.--
        ``(1) Aggregate credit amount allowed.--The aggregate amount of 
    credit allowed under subsection (a) with respect to a taxpayer for 
    any taxable year shall not exceed $75,000,000 reduced by the amount 
    of the credit allowed under subsection (a) to the taxpayer (or any 
    predecessor) for all prior taxable years.
        ``(2) Amount allowed for 15 percent savings refrigerators.--In 
    the case of refrigerators described in subsection (b)(1)(C)(i), the 
    aggregate amount of the credit allowed under subsection (a) with 
    respect to a taxpayer for any taxable year shall not exceed 
    $20,000,000.
        ``(3) Limitation based on gross receipts.--The credit allowed 
    under subsection (a) with respect to a taxpayer for the taxable 
    year shall not exceed an amount equal to 2 percent of the average 
    annual gross receipts of the taxpayer for the 3 taxable years 
    preceding the taxable year in which the credit is determined.
        ``(4) Gross receipts.--For purposes of this subsection, the 
    rules of paragraphs (2) and (3) of section 448(c) shall apply.
    ``(f) Definitions.--For purposes of this section--
        ``(1) Qualified energy efficient appliance.--The term 
    `qualified energy efficient appliance' means--
            ``(A) any dishwasher described in subsection (b)(1)(A),
            ``(B) any clothes washer described in subsection (b)(1)(B), 
        and
            ``(C) any refrigerator described in subsection (b)(1)(C).
        ``(2) Dishwasher.--The term `dishwasher' means a residential 
    dishwasher subject to the energy conservation standards established 
    by the Department of Energy.
        ``(3) Clothes washer.--The term `clothes washer' means a 
    residential model clothes washer, including a residential style 
    coin operated washer.
        ``(4) Refrigerator.--The term `refrigerator' means a 
    residential model automatic defrost refrigerator-freezer which has 
    an internal volume of at least 16.5 cubic feet.
        ``(5) EF.--The term `EF' means the energy factor established by 
    the Department of Energy for compliance with the Federal energy 
    conservation standards.
        ``(6) Produced.--The term `produced' includes manufactured.
        ``(7) 2001 energy conservation standard.--The term `2001 energy 
    conservation standard' means the energy conservation standards 
    promulgated by the Department of Energy and effective July 1, 2001.
    ``(g) Special Rules.--For purposes of this section--
        ``(1) In general.--Rules similar to the rules of subsections 
    (c), (d), and (e) of section 52 shall apply.
        ``(2) Controlled group.--
            ``(A) In general.--All persons treated as a single employer 
        under subsection (a) or (b) of section 52 or subsection (m) or 
        (o) of section 414 shall be treated as a single producer.
            ``(B) Inclusion of foreign corporations.--For purposes of 
        subparagraph (A), in applying subsections (a) and (b) of 
        section 52 to this section, section 1563 shall be applied 
        without regard to subsection (b)(2)(C) thereof.
        ``(3) Verification.--No amount shall be allowed as a credit 
    under subsection (a) with respect to which the taxpayer has not 
    submitted such information or certification as the Secretary, in 
    consultation with the Secretary of Energy, determines necessary.''.
    (b) Conforming Amendment.--Section 38(b) (relating to general 
business credit), as amended by this Act, is amended by striking 
``plus'' at the end of paragraph (22), by striking the period at the 
end of paragraph (23) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
        ``(24) the energy efficient appliance credit determined under 
    section 45M(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1, as amended by this Act, is 
amended by adding at the end the following new item:

    ``Sec. 45M. Energy efficient appliance credit.''.

    (d) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2005.

SEC. 1335. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
(relating to nonrefundable personal credits), as amended by this Act, 
is amended by inserting after section 25C the following new section:

``SEC. 25D. RESIDENTIAL ENERGY EFFICIENT PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of--
        ``(1) 30 percent of the qualified photovoltaic property 
    expenditures made by the taxpayer during such year,
        ``(2) 30 percent of the qualified solar water heating property 
    expenditures made by the taxpayer during such year, and
        ``(3) 30 percent of the qualified fuel cell property 
    expenditures made by the taxpayer during such year.
    ``(b) Limitations.--
        ``(1) Maximum credit.--The credit allowed under subsection (a) 
    for any taxable year shall not exceed--
            ``(A) $2,000 with respect to any qualified photovoltaic 
        property expenditures,
            ``(B) $2,000 with respect to any qualified solar water 
        heating property expenditures, and
            ``(C) $500 with respect to each half kilowatt of capacity 
        of qualified fuel cell property (as defined in section 
        48(c)(1)) for which qualified fuel cell property expenditures 
        are made.
        ``(2) Certification of solar water heating property.--No credit 
    shall be allowed under this section for an item of property 
    described in subsection (d)(1) unless such property is certified 
    for performance by the non-profit Solar Rating Certification 
    Corporation or a comparable entity endorsed by the government of 
    the State in which such property is installed.
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under this 
subpart (other than this section), such excess shall be carried to the 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.
    ``(d) Definitions.--For purposes of this section--
        ``(1) Qualified solar water heating property expenditure.--The 
    term `qualified solar water heating property expenditure' means an 
    expenditure for property to heat water for use in a dwelling unit 
    located in the United States and used as a residence by the 
    taxpayer if at least half of the energy used by such property for 
    such purpose is derived from the sun.
        ``(2) Qualified photovoltaic property expenditure.--The term 
    `qualified photovoltaic property expenditure' means an expenditure 
    for property which uses solar energy to generate electricity for 
    use in a dwelling unit located in the United States and used as a 
    residence by the taxpayer.
        ``(3) Qualified fuel cell property expenditure.--The term 
    `qualified fuel cell property expenditure' means an expenditure for 
    qualified fuel cell property (as defined in section 48(c)(1)) 
    installed on or in connection with a dwelling unit located in the 
    United States and used as a principal residence (within the meaning 
    of section 121) by the taxpayer.
    ``(e) Special Rules.--For purposes of this section--
        ``(1) Labor costs.--Expenditures for labor costs properly 
    allocable to the onsite preparation, assembly, or original 
    installation of the property described in subsection (d) and for 
    piping or wiring to interconnect such property to the dwelling unit 
    shall be taken into account for purposes of this section.
        ``(2) Solar panels.--No expenditure relating to a solar panel 
    or other property installed as a roof (or portion thereof) shall 
    fail to be treated as property described in paragraph (1) or (2) of 
    subsection (d) solely because it constitutes a structural component 
    of the structure on which it is installed.
        ``(3) Swimming pools, etc., used as storage medium.--
    Expenditures which are properly allocable to a swimming pool, hot 
    tub, or any other energy storage medium which has a function other 
    than the function of such storage shall not be taken into account 
    for purposes of this section.
        ``(4) Dollar amounts in case of joint occupancy.--In the case 
    of any dwelling unit which is jointly occupied and used during any 
    calendar year as a residence by two or more individuals the 
    following rules shall apply:
            ``(A) The amount of the credit allowable, under subsection 
        (a) by reason of expenditures (as the case may be) made during 
        such calendar year by any of such individuals with respect to 
        such dwelling unit shall be determined by treating all of such 
        individuals as 1 taxpayer whose taxable year is such calendar 
        year.
            ``(B) There shall be allowable, with respect to such 
        expenditures to each of such individuals, a credit under 
        subsection (a) for the taxable year in which such calendar year 
        ends in an amount which bears the same ratio to the amount 
        determined under subparagraph (A) as the amount of such 
        expenditures made by such individual during such calendar year 
        bears to the aggregate of such expenditures made by all of such 
        individuals during such calendar year.
            ``(C) Subparagraphs (A) and (B) shall be applied separately 
        with respect to expenditures described in paragraphs (1), (2), 
        and (3) of subsection (d).
        ``(5) Tenant-stockholder in cooperative housing corporation.--
    In the case of an individual who is a tenant-stockholder (as 
    defined in section 216) in a cooperative housing corporation (as 
    defined in such section), such individual shall be treated as 
    having made his tenant-stockholder's proportionate share (as 
    defined in section 216(b)(3)) of any expenditures of such 
    corporation.
        ``(6) Condominiums.--
            ``(A) In general.--In the case of an individual who is a 
        member of a condominium management association with respect to 
        a condominium which the individual owns, such individual shall 
        be treated as having made the individual's proportionate share 
        of any expenditures of such association.
            ``(B) Condominium management association.--For purposes of 
        this paragraph, the term `condominium management association' 
        means an organization which meets the requirements of paragraph 
        (1) of section 528(c) (other than subparagraph (E) thereof) 
        with respect to a condominium project substantially all of the 
        units of which are used as residences.
        ``(7) Allocation in certain cases.--If less than 80 percent of 
    the use of an item is for nonbusiness purposes, only that portion 
    of the expenditures for such item which is properly allocable to 
    use for nonbusiness purposes shall be taken into account.
        ``(8) When expenditure made; amount of expenditure.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        an expenditure with respect to an item shall be treated as made 
        when the original installation of the item is completed.
            ``(B) Expenditures part of building construction.--In the 
        case of an expenditure in connection with the construction or 
        reconstruction of a structure, such expenditure shall be 
        treated as made when the original use of the constructed or 
        reconstructed structure by the taxpayer begins.
        ``(9) Property financed by subsidized energy financing.--For 
    purposes of determining the amount of expenditures made by any 
    individual with respect to any dwelling unit, there shall not be 
    taken into account expenditures which are made from subsidized 
    energy financing (as defined in section 48(a)(4)(C)).
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(g) Termination.--The credit allowed under this section shall not 
apply to property placed in service after December 31, 2007.''.
    (b) Conforming Amendments.--
        (1) Section 23(c) is amended by striking ``this section and 
    section 1400C'' and inserting ``this section, section 25D, and 
    section 1400C''.
        (2) Section 25(e)(1)(C) is amended by striking ``this section 
    and sections 23 and 1400C'' and inserting ``other than this 
    section, section 23, section 25D, and section 1400C''.
        (3) Section 1400C(d) is amended by striking ``this section'' 
    and inserting ``this section and section 25D''.
        (4) Section 1016(a), as amended by this Act, is amended by 
    striking ``and'' at the end of paragraph (33), by striking the 
    period at the end of paragraph (34) and inserting ``, and'', and by 
    adding at the end the following new paragraph:
        ``(35) to the extent provided in section 25D(f), in the case of 
    amounts with respect to which a credit has been allowed under 
    section 25D.''.
        (5) The table of sections for subpart A of part IV of 
    subchapter A of chapter 1, as amended by this Act, is amended by 
    inserting after the item relating to section 25C the following new 
    item:

    ``Sec. 25D. Residential energy efficient property.''.

    (c) Effective Dates.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.

SEC. 1336. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS AND 
              STATIONARY MICROTURBINE POWER PLANTS.

    (a) In General.--Section 48(a)(3)(A) (defining energy property) is 
amended by striking ``or'' at the end of clause (i), by adding ``or'' 
at the end of clause (ii), and by inserting after clause (ii) the 
following new clause:
                ``(iii) qualified fuel cell property or qualified 
            microturbine property,''.
    (b) Qualified Fuel Cell Property; Qualified Microturbine 
Property.--Section 48 (relating to energy credit) is amended by adding 
at the end the following new subsection:
    ``(c) Qualified Fuel Cell Property; Qualified Microturbine 
Property.--For purposes of this subsection--
        ``(1) Qualified fuel cell property.--
            ``(A) In general.--The term `qualified fuel cell property' 
        means a fuel cell power plant which--
                ``(i) has a nameplate capacity of at least 0.5 kilowatt 
            of electricity using an electrochemical process, and
                ``(ii) has an electricity-only generation efficiency 
            greater than 30 percent.
            ``(B) Limitation.--In the case of qualified fuel cell 
        property placed in service during the taxable year, the credit 
        otherwise determined under paragraph (1) for such year with 
        respect to such property shall not exceed an amount equal to 
        $500 for each 0.5 kilowatt of capacity of such property.
            ``(C) Fuel cell power plant.--The term `fuel cell power 
        plant' means an integrated system comprised of a fuel cell 
        stack assembly and associated balance of plant components which 
        converts a fuel into electricity using electrochemical means.
            ``(D) Special rule.--The first sentence of the matter in 
        subsection (a)(3) which follows subparagraph (D) thereof shall 
        not apply to qualified fuel cell property which is used 
        predominantly in the trade or business of the furnishing or 
        sale of telephone service, telegraph service by means of 
        domestic telegraph operations, or other telegraph services 
        (other than international telegraph services).
            ``(E) Termination.--The term `qualified fuel cell property' 
        shall not include any property for any period after December 
        31, 2007.
        ``(2) Qualified microturbine property.--
            ``(A) In general.--The term `qualified microturbine 
        property' means a stationary microturbine power plant which--
                ``(i) has a nameplate capacity of less than 2,000 
            kilowatts, and
                ``(ii) has an electricity-only generation efficiency of 
            not less than 26 percent at International Standard 
            Organization conditions.
            ``(B) Limitation.--In the case of qualified microturbine 
        property placed in service during the taxable year, the credit 
        otherwise determined under paragraph (1) for such year with 
        respect to such property shall not exceed an amount equal $200 
        for each kilowatt of capacity of such property.
            ``(C) Stationary microturbine power plant.--The term 
        `stationary microturbine power plant' means an integrated 
        system comprised of a gas turbine engine, a combustor, a 
        recuperator or regenerator, a generator or alternator, and 
        associated balance of plant components which converts a fuel 
        into electricity and thermal energy. Such term also includes 
        all secondary components located between the existing 
        infrastructure for fuel delivery and the existing 
        infrastructure for power distribution, including equipment and 
        controls for meeting relevant power standards, such as voltage, 
        frequency, and power factors.
            ``(D) Special rule.--The first sentence of the matter in 
        subsection (a)(3) which follows subparagraph (D) thereof shall 
        not apply to qualified microturbine property which is used 
        predominantly in the trade or business of the furnishing or 
        sale of telephone service, telegraph service by means of 
        domestic telegraph operations, or other telegraph services 
        (other than international telegraph services).
            ``(E) Termination.--The term `qualified microturbine 
        property' shall not include any property for any period after 
        December 31, 2007.''.
    (c) Energy Percentage.--Section 48(a)(2)(A) (relating to energy 
percentage) is amended to read as follows:
            ``(A) In general.--The energy percentage is--
                ``(i) in the case of qualified fuel cell property, 30 
            percent, and
                ``(ii) in the case of any other energy property, 10 
            percent.''.
    (d) Conforming Amendment.--Section 48(a)(1) is amended by inserting 
``except as provided in paragraph (1)(B) or (2)(B) of subsection (d),'' 
before ``the energy''.
    (e) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2005, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

SEC. 1337. BUSINESS SOLAR INVESTMENT TAX CREDIT.

    (a) Increase in Energy Percentage.--Section 48(a)(2)(A) (relating 
to energy percentage), as amended by this Act, is amended to read as 
follows:
            ``(A) In general.--The energy percentage is--
                ``(i) 30 percent in the case of--

                    ``(I) qualified fuel cell property,
                    ``(II) energy property described in paragraph 
                (3)(A)(i) but only with respect to periods ending 
                before January 1, 2008, and
                    ``(III) energy property described in paragraph 
                (3)(A)(ii), and

                ``(ii) in the case of any energy property to which 
            clause (i) does not apply, 10 percent.''.
    (b) Hybrid Solar Lighting Systems.--Subparagraph (A) of section 
48(a)(3) is amended by striking ``or'' at the end of clause (i), by 
redesignating clause (ii) as clause (iii), and by inserting after 
clause (i) the following new clause:
                ``(ii) equipment which uses solar energy to illuminate 
            the inside of a structure using fiber-optic distributed 
            sunlight but only with respect to periods ending before 
            January 1, 2008, or''.
    (c) Limitation on Use of Solar Energy to Heat Swimming Pools.--
Clause (i) of section 48(a)(3)(A) is amended by inserting ``excepting 
property used to generate energy for the purposes of heating a swimming 
pool,'' after ``solar process heat,''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2005, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990).

      Subtitle D--Alternative Motor Vehicles and Fuels Incentives

SEC. 1341. ALTERNATIVE MOTOR VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.) is amended by adding at the end 
the following new section:

``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
        ``(1) the new qualified fuel cell motor vehicle credit 
    determined under subsection (b),
        ``(2) the new advanced lean burn technology motor vehicle 
    credit determined under subsection (c),
        ``(3) the new qualified hybrid motor vehicle credit determined 
    under subsection (d), and
        ``(4) the new qualified alternative fuel motor vehicle credit 
    determined under subsection (e).
    ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
        ``(1) In general.--For purposes of subsection (a), the new 
    qualified fuel cell motor vehicle credit determined under this 
    subsection with respect to a new qualified fuel cell motor vehicle 
    placed in service by the taxpayer during the taxable year is--
            ``(A) $8,000 ($4,000 in the case of a vehicle placed in 
        service after December 31, 2009), if such vehicle has a gross 
        vehicle weight rating of not more than 8,500 pounds,
            ``(B) $10,000, if such vehicle has a gross vehicle weight 
        rating of more than 8,500 pounds but not more than 14,000 
        pounds,
            ``(C) $20,000, if such vehicle has a gross vehicle weight 
        rating of more than 14,000 pounds but not more than 26,000 
        pounds, and
            ``(D) $40,000, if such vehicle has a gross vehicle weight 
        rating of more than 26,000 pounds.
        ``(2) Increase for fuel efficiency.--
            ``(A) In general.--The amount determined under paragraph 
        (1)(A) with respect to a new qualified fuel cell motor vehicle 
        which is a passenger automobile or light truck shall be 
        increased by--
                ``(i) $1,000, if such vehicle achieves at least 150 
            percent but less than 175 percent of the 2002 model year 
            city fuel economy,
                ``(ii) $1,500, if such vehicle achieves at least 175 
            percent but less than 200 percent of the 2002 model year 
            city fuel economy,
                ``(iii) $2,000, if such vehicle achieves at least 200 
            percent but less than 225 percent of the 2002 model year 
            city fuel economy,
                ``(iv) $2,500, if such vehicle achieves at least 225 
            percent but less than 250 percent of the 2002 model year 
            city fuel economy,
                ``(v) $3,000, if such vehicle achieves at least 250 
            percent but less than 275 percent of the 2002 model year 
            city fuel economy,
                ``(vi) $3,500, if such vehicle achieves at least 275 
            percent but less than 300 percent of the 2002 model year 
            city fuel economy, and
                ``(vii) $4,000, if such vehicle achieves at least 300 
            percent of the 2002 model year city fuel economy.
            ``(B) 2002 model year city fuel economy.--For purposes of 
        subparagraph (A), the 2002 model year city fuel economy with 
        respect to a vehicle shall be determined in accordance with the 
        following tables:
                ``(i) In the case of a passenger automobile:

                                                The 2002 model year city
          ``If vehicle inertia weight class is:
                                                        fuel economy is:
                  1,500 or 1,750 lbs..........................


                                                              45.2 mpg  

                  2,000 lbs...................................


                                                              39.6 mpg  

                  2,250 lbs...................................


                                                              35.2 mpg  

                  2,500 lbs...................................


                                                              31.7 mpg  

                  2,750 lbs...................................


                                                              28.8 mpg  

                  3,000 lbs...................................


                                                              26.4 mpg  

                  3,500 lbs...................................


                                                              22.6 mpg  

                  4,000 lbs...................................


                                                              19.8 mpg  

                  4,500 lbs...................................


                                                              17.6 mpg  

                  5,000 lbs...................................


                                                              15.9 mpg  

                  5,500 lbs...................................


                                                              14.4 mpg  

                  6,000 lbs...................................


                                                              13.2 mpg  

                  6,500 lbs...................................


                                                              12.2 mpg  

                  7,000 to 8,500 lbs..........................


                                                              11.3 mpg. 

                ``(ii) In the case of a light truck:

                                                The 2002 model year city
          ``If vehicle inertia weight class is:
                                                        fuel economy is:
                  1,500 or 1,750 lbs..........................


                                                              39.4 mpg  

                  2,000 lbs...................................


                                                              35.2 mpg  

                  2,250 lbs...................................


                                                              31.8 mpg  

                  2,500 lbs...................................


                                                              29.0 mpg  

                  2,750 lbs...................................


                                                              26.8 mpg  

                  3,000 lbs...................................


                                                              24.9 mpg  

                  3,500 lbs...................................


                                                              21.8 mpg  

                  4,000 lbs...................................


                                                              19.4 mpg  

                  4,500 lbs...................................


                                                              17.6 mpg  

                  5,000 lbs...................................


                                                              16.1 mpg  

                  5,500 lbs...................................


                                                              14.8 mpg  

                  6,000 lbs...................................


                                                              13.7 mpg  

                  6,500 lbs...................................


                                                              12.8 mpg  

                  7,000 to 8,500 lbs..........................


                                                              12.1 mpg. 

            ``(C) Vehicle inertia weight class.--For purposes of 
        subparagraph (B), the term `vehicle inertia weight class' has 
        the same meaning as when defined in regulations prescribed by 
        the Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
        ``(3) New qualified fuel cell motor vehicle.--For purposes of 
    this subsection, the term `new qualified fuel cell motor vehicle' 
    means a motor vehicle--
            ``(A) which is propelled by power derived from 1 or more 
        cells which convert chemical energy directly into electricity 
        by combining oxygen with hydrogen fuel which is stored on board 
        the vehicle in any form and may or may not require reformation 
        prior to use,
            ``(B) which, in the case of a passenger automobile or light 
        truck, has received on or after the date of the enactment of 
        this section a certificate that such vehicle meets or exceeds 
        the Bin 5 Tier II emission level established in regulations 
        prescribed by the Administrator of the Environmental Protection 
        Agency under section 202(i) of the Clean Air Act for that make 
        and model year vehicle,
            ``(C) the original use of which commences with the 
        taxpayer,
            ``(D) which is acquired for use or lease by the taxpayer 
        and not for resale, and
            ``(E) which is made by a manufacturer.
    ``(c) New Advanced Lean Burn Technology Motor Vehicle Credit.--
        ``(1) In general.--For purposes of subsection (a), the new 
    advanced lean burn technology motor vehicle credit determined under 
    this subsection for the taxable year is the credit amount 
    determined under paragraph (2) with respect to a new advanced lean 
    burn technology motor vehicle placed in service by the taxpayer 
    during the taxable year.
        ``(2) Credit amount.--
            ``(A) Fuel economy.--
                ``(i) In general.--The credit amount determined under 
            this paragraph shall be determined in accordance with the 
            following table:

``In the case of a vehicle which achieves a fuel economy (expressed as a 
  percentage of the 2002 model year city fuel economy) of--
                                                  The credit amount is--
    At least 125 percent but less than 150 percent............


                                                                    $400

    At least 150 percent but less than 175 percent............


                                                                    $800

    At least 175 percent but less than 200 percent............


                                                                  $1,200

    At least 200 percent but less than 225 percent............


                                                                  $1,600

    At least 225 percent but less than 250 percent............


                                                                  $2,000

    At least 250 percent......................................


                                                                 $2,400.

                ``(ii) 2002 model year city fuel economy.--For purposes 
            of clause (i), the 2002 model year city fuel economy with 
            respect to a vehicle shall be determined on a gasoline 
            gallon equivalent basis as determined by the Administrator 
            of the Environmental Protection Agency using the tables 
            provided in subsection (b)(2)(B) with respect to such 
            vehicle.
            ``(B) Conservation credit.--The amount determined under 
        subparagraph (A) with respect to a new advanced lean burn 
        technology motor vehicle shall be increased by the conservation 
        credit amount determined in accordance with the following 
        table:

``In the case of a vehicle which achieves a lifetime fuel savings 
  (expressed in gallons of gasoline) of--
                                     The conservation credit amount is--
    At least 1,200 but less than 1,800........................


                                                                    $250

    At least 1,800 but less than 2,400........................


                                                                    $500

    At least 2,400 but less than 3,000........................


                                                                    $750

    At least 3,000............................................


                                                                 $1,000.

        ``(3) New advanced lean burn technology motor vehicle.--For 
    purposes of this subsection, the term `new advanced lean burn 
    technology motor vehicle' means a passenger automobile or a light 
    truck--
            ``(A) with an internal combustion engine which--
                ``(i) is designed to operate primarily using more air 
            than is necessary for complete combustion of the fuel,
                ``(ii) incorporates direct injection,
                ``(iii) achieves at least 125 percent of the 2002 model 
            year city fuel economy,
                ``(iv) for 2004 and later model vehicles, has received 
            a certificate that such vehicle meets or exceeds--

                    ``(I) in the case of a vehicle having a gross 
                vehicle weight rating of 6,000 pounds or less, the Bin 
                5 Tier II emission standard established in regulations 
                prescribed by the Administrator of the Environmental 
                Protection Agency under section 202(i) of the Clean Air 
                Act for that make and model year vehicle, and
                    ``(II) in the case of a vehicle having a gross 
                vehicle weight rating of more than 6,000 pounds but not 
                more than 8,500 pounds, the Bin 8 Tier II emission 
                standard which is so established,

            ``(B) the original use of which commences with the 
        taxpayer,
            ``(C) which is acquired for use or lease by the taxpayer 
        and not for resale, and
            ``(D) which is made by a manufacturer.
        ``(4) Lifetime fuel savings.--For purposes of this subsection, 
    the term `lifetime fuel savings' means, in the case of any new 
    advanced lean burn technology motor vehicle, an amount equal to the 
    excess (if any) of--
            ``(A) 120,000 divided by the 2002 model year city fuel 
        economy for the vehicle inertia weight class, over
            ``(B) 120,000 divided by the city fuel economy for such 
        vehicle.
    ``(d) New Qualified Hybrid Motor Vehicle Credit.--
        ``(1) In general.--For purposes of subsection (a), the new 
    qualified hybrid motor vehicle credit determined under this 
    subsection for the taxable year is the credit amount determined 
    under paragraph (2) with respect to a new qualified hybrid motor 
    vehicle placed in service by the taxpayer during the taxable year.
        ``(2) Credit amount.--
            ``(A) Credit amount for passenger automobiles and light 
        trucks.--In the case of a new qualified hybrid motor vehicle 
        which is a passenger automobile or light truck and which has a 
        gross vehicle weight rating of not more than 8,500 pounds, the 
        amount determined under this paragraph is the sum of the 
        amounts determined under clauses (i) and (ii).
                ``(i) Fuel economy.--The amount determined under this 
            clause is the amount which would be determined under 
            subsection (c)(2)(A) if such vehicle were a vehicle 
            referred to in such subsection.
                ``(ii) Conservation credit.--The amount determined 
            under this clause is the amount which would be determined 
            under subsection (c)(2)(B) if such vehicle were a vehicle 
            referred to in such subsection.
            ``(B) Credit amount for other motor vehicles.--
                ``(i) In general.--In the case of any new qualified 
            hybrid motor vehicle to which subparagraph (A) does not 
            apply, the amount determined under this paragraph is the 
            amount equal to the applicable percentage of the qualified 
            incremental hybrid cost of the vehicle as certified under 
            clause (v).
                ``(ii) Applicable percentage.--For purposes of clause 
            (i), the applicable percentage is--

                    ``(I) 20 percent if the vehicle achieves an 
                increase in city fuel economy relative to a comparable 
                vehicle of at least 30 percent but less than 40 
                percent,
                    ``(II) 30 percent if the vehicle achieves such an 
                increase of at least 40 percent but less than 50 
                percent, and
                    ``(III) 40 percent if the vehicle achieves such an 
                increase of at least 50 percent.

                ``(iii) Qualified incremental hybrid cost.--For 
            purposes of this subparagraph, the qualified incremental 
            hybrid cost of any vehicle is equal to the amount of the 
            excess of the manufacturer's suggested retail price for 
            such vehicle over such price for a comparable vehicle, to 
            the extent such amount does not exceed--

                    ``(I) $7,500, if such vehicle has a gross vehicle 
                weight rating of not more than 14,000 pounds,
                    ``(II) $15,000, if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds, and
                    ``(III) $30,000, if such vehicle has a gross 
                vehicle weight rating of more than 26,000 pounds.

                ``(iv) Comparable vehicle.--For purposes of this 
            subparagraph, the term `comparable vehicle' means, with 
            respect to any new qualified hybrid motor vehicle, any 
            vehicle which is powered solely by a gasoline or diesel 
            internal combustion engine and which is comparable in 
            weight, size, and use to such vehicle.
                ``(v) Certification.--A certification described in 
            clause (i) shall be made by the manufacturer and shall be 
            determined in accordance with guidance prescribed by the 
            Secretary. Such guidance shall specify procedures and 
            methods for calculating fuel economy savings and 
            incremental hybrid costs.
        ``(3) New qualified hybrid motor vehicle.--For purposes of this 
    subsection--
            ``(A) In general.--The term `new qualified hybrid motor 
        vehicle' means a motor vehicle--
                ``(i) which draws propulsion energy from onboard 
            sources of stored energy which are both--

                    ``(I) an internal combustion or heat engine using 
                consumable fuel, and
                    ``(II) a rechargeable energy storage system,

                ``(ii) which, in the case of a vehicle to which 
            paragraph (2)(A) applies, has received a certificate of 
            conformity under the Clean Air Act and meets or exceeds the 
            equivalent qualifying California low emission vehicle 
            standard under section 243(e)(2) of the Clean Air Act for 
            that make and model year, and

                    ``(I) in the case of a vehicle having a gross 
                vehicle weight rating of 6,000 pounds or less, the Bin 
                5 Tier II emission standard established in regulations 
                prescribed by the Administrator of the Environmental 
                Protection Agency under section 202(i) of the Clean Air 
                Act for that make and model year vehicle, and
                    ``(II) in the case of a vehicle having a gross 
                vehicle weight rating of more than 6,000 pounds but not 
                more than 8,500 pounds, the Bin 8 Tier II emission 
                standard which is so established,

                ``(iii) which has a maximum available power of at 
            least--

                    ``(I) 4 percent in the case of a vehicle to which 
                paragraph (2)(A) applies,
                    ``(II) 10 percent in the case of a vehicle which 
                has a gross vehicle weight rating of more than 8,500 
                pounds and not more than 14,000 pounds, and
                    ``(III) 15 percent in the case of a vehicle in 
                excess of 14,000 pounds,

                ``(iv) which, in the case of a vehicle to which 
            paragraph (2)(B) applies, has an internal combustion or 
            heat engine which has received a certificate of conformity 
            under the Clean Air Act as meeting the emission standards 
            set in the regulations prescribed by the Administrator of 
            the Environmental Protection Agency for 2004 through 2007 
            model year diesel heavy duty engines or ottocycle heavy 
            duty engines, as applicable,
                ``(v) the original use of which commences with the 
            taxpayer,
                ``(vi) which is acquired for use or lease by the 
            taxpayer and not for resale, and
                ``(vii) which is made by a manufacturer.
        Such term shall not include any vehicle which is not a 
        passenger automobile or light truck if such vehicle has a gross 
        vehicle weight rating of less than 8,500 pounds.
            ``(B) Consumable fuel.--For purposes of subparagraph 
        (A)(i)(I), the term `consumable fuel' means any solid, liquid, 
        or gaseous matter which releases energy when consumed by an 
        auxiliary power unit.
            ``(C) Maximum available power.--
                ``(i) Certain passenger automobiles and light trucks.--
            In the case of a vehicle to which paragraph (2)(A) applies, 
            the term `maximum available power' means the maximum power 
            available from the rechargeable energy storage system, 
            during a standard 10 second pulse power or equivalent test, 
            divided by such maximum power and the SAE net power of the 
            heat engine.
                ``(ii) Other motor vehicles.--In the case of a vehicle 
            to which paragraph (2)(B) applies, the term `maximum 
            available power' means the maximum power available from the 
            rechargeable energy storage system, during a standard 10 
            second pulse power or equivalent test, divided by the 
            vehicle's total traction power. For purposes of the 
            preceding sentence, the term `total traction power' means 
            the sum of the peak power from the rechargeable energy 
            storage system and the heat engine peak power of the 
            vehicle, except that if such storage system is the sole 
            means by which the vehicle can be driven, the total 
            traction power is the peak power of such storage system.
    ``(e) New Qualified Alternative Fuel Motor Vehicle Credit.--
        ``(1) Allowance of credit.--Except as provided in paragraph 
    (5), the new qualified alternative fuel motor vehicle credit 
    determined under this subsection is an amount equal to the 
    applicable percentage of the incremental cost of any new qualified 
    alternative fuel motor vehicle placed in service by the taxpayer 
    during the taxable year.
        ``(2) Applicable percentage.--For purposes of paragraph (1), 
    the applicable percentage with respect to any new qualified 
    alternative fuel motor vehicle is--
            ``(A) 50 percent, plus
            ``(B) 30 percent, if such vehicle--
                ``(i) has received a certificate of conformity under 
            the Clean Air Act and meets or exceeds the most stringent 
            standard available for certification under the Clean Air 
            Act for that make and model year vehicle (other than a zero 
            emission standard), or
                ``(ii) has received an order certifying the vehicle as 
            meeting the same requirements as vehicles which may be sold 
            or leased in California and meets or exceeds the most 
            stringent standard available for certification under the 
            State laws of California (enacted in accordance with a 
            waiver granted under section 209(b) of the Clean Air Act) 
            for that make and model year vehicle (other than a zero 
            emission standard).
    For purposes of the preceding sentence, in the case of any new 
    qualified alternative fuel motor vehicle which weighs more than 
    14,000 pounds gross vehicle weight rating, the most stringent 
    standard available shall be such standard available for 
    certification on the date of the enactment of the Energy Tax 
    Incentives Act of 2005.
        ``(3) Incremental cost.--For purposes of this subsection, the 
    incremental cost of any new qualified alternative fuel motor 
    vehicle is equal to the amount of the excess of the manufacturer's 
    suggested retail price for such vehicle over such price for a 
    gasoline or diesel fuel motor vehicle of the same model, to the 
    extent such amount does not exceed--
            ``(A) $5,000, if such vehicle has a gross vehicle weight 
        rating of not more than 8,500 pounds,
            ``(B) $10,000, if such vehicle has a gross vehicle weight 
        rating of more than 8,500 pounds but not more than 14,000 
        pounds,
            ``(C) $25,000, if such vehicle has a gross vehicle weight 
        rating of more than 14,000 pounds but not more than 26,000 
        pounds, and
            ``(D) $40,000, if such vehicle has a gross vehicle weight 
        rating of more than 26,000 pounds.
        ``(4) New qualified alternative fuel motor vehicle.--For 
    purposes of this subsection--
            ``(A) In general.--The term `new qualified alternative fuel 
        motor vehicle' means any motor vehicle--
                ``(i) which is only capable of operating on an 
            alternative fuel,
                ``(ii) the original use of which commences with the 
            taxpayer,
                ``(iii) which is acquired by the taxpayer for use or 
            lease, but not for resale, and
                ``(iv) which is made by a manufacturer.
            ``(B) Alternative fuel.--The term `alternative fuel' means 
        compressed natural gas, liquefied natural gas, liquefied 
        petroleum gas, hydrogen, and any liquid at least 85 percent of 
        the volume of which consists of methanol.
        ``(5) Credit for mixed-fuel vehicles.--
            ``(A) In general.--In the case of a mixed-fuel vehicle 
        placed in service by the taxpayer during the taxable year, the 
        credit determined under this subsection is an amount equal to--
                ``(i) in the case of a 75/25 mixed-fuel vehicle, 70 
            percent of the credit which would have been allowed under 
            this subsection if such vehicle was a qualified alternative 
            fuel motor vehicle, and
                ``(ii) in the case of a 90/10 mixed-fuel vehicle, 90 
            percent of the credit which would have been allowed under 
            this subsection if such vehicle was a qualified alternative 
            fuel motor vehicle.
            ``(B) Mixed-fuel vehicle.--For purposes of this subsection, 
        the term `mixed-fuel vehicle' means any motor vehicle described 
        in subparagraph (C) or (D) of paragraph (3), which--
                ``(i) is certified by the manufacturer as being able to 
            perform efficiently in normal operation on a combination of 
            an alternative fuel and a petroleum-based fuel,
                ``(ii) either--

                    ``(I) has received a certificate of conformity 
                under the Clean Air Act, or
                    ``(II) has received an order certifying the vehicle 
                as meeting the same requirements as vehicles which may 
                be sold or leased in California and meets or exceeds 
                the low emission vehicle standard under section 88.105-
                94 of title 40, Code of Federal Regulations, for that 
                make and model year vehicle,

                ``(iii) the original use of which commences with the 
            taxpayer,
                ``(iv) which is acquired by the taxpayer for use or 
            lease, but not for resale, and
                ``(v) which is made by a manufacturer.
            ``(C) 75/25 mixed-fuel vehicle.--For purposes of this 
        subsection, the term `75/25 mixed-fuel vehicle' means a mixed-
        fuel vehicle which operates using at least 75 percent 
        alternative fuel and not more than 25 percent petroleum-based 
        fuel.
            ``(D) 90/10 mixed-fuel vehicle.--For purposes of this 
        subsection, the term `90/10 mixed-fuel vehicle' means a mixed-
        fuel vehicle which operates using at least 90 percent 
        alternative fuel and not more than 10 percent petroleum-based 
        fuel.
    ``(f) Limitation on Number of New Qualified Hybrid and Advanced 
Lean-Burn Technology Vehicles Eligible for Credit.--
        ``(1) In general.--In the case of a qualified vehicle sold 
    during the phaseout period, only the applicable percentage of the 
    credit otherwise allowable under subsection (c) or (d) shall be 
    allowed.
        ``(2) Phaseout period.--For purposes of this subsection, the 
    phaseout period is the period beginning with the second calendar 
    quarter following the calendar quarter which includes the first 
    date on which the number of qualified vehicles manufactured by the 
    manufacturer of the vehicle referred to in paragraph (1) sold for 
    use in the United States after December 31, 2005, is at least 
    60,000.
        ``(3) Applicable percentage.--For purposes of paragraph (1), 
    the applicable percentage is--
            ``(A) 50 percent for the first 2 calendar quarters of the 
        phaseout period,
            ``(B) 25 percent for the 3d and 4th calendar quarters of 
        the phaseout period, and
            ``(C) 0 percent for each calendar quarter thereafter.
        ``(4) Controlled groups.--
            ``(A) In general.--For purposes of this subsection, all 
        persons treated as a single employer under subsection (a) or 
        (b) of section 52 or subsection (m) or (o) of section 414 shall 
        be treated as a single manufacturer.
            ``(B) Inclusion of foreign corporations.--For purposes of 
        subparagraph (A), in applying subsections (a) and (b) of 
        section 52 to this section, section 1563 shall be applied 
        without regard to subsection (b)(2)(C) thereof.
        ``(5) Qualified vehicle.--For purposes of this subsection, the 
    term `qualified vehicle' means any new qualified hybrid motor 
    vehicle (described in subsection (d)(2)(A)) and any new advanced 
    lean burn technology motor vehicle.
    ``(g) Application With Other Credits.--
        ``(1) Business credit treated as part of general business 
    credit.--So much of the credit which would be allowed under 
    subsection (a) for any taxable year (determined without regard to 
    this subsection) that is attributable to property of a character 
    subject to an allowance for depreciation shall be treated as a 
    credit listed in section 38(b) for such taxable year (and not 
    allowed under subsection (a)).
        ``(2) Personal credit.--The credit allowed under subsection (a) 
    (after the application of paragraph (1)) for any taxable year shall 
    not exceed the excess (if any) of--
            ``(A) the regular tax reduced by the sum of the credits 
        allowable under subpart A and sections 27 and 30, over
            ``(B) the tentative minimum tax for the taxable year.
    ``(h) Other Definitions and Special Rules.--For purposes of this 
section--
        ``(1) Motor vehicle.--The term `motor vehicle' has the meaning 
    given such term by section 30(c)(2).
        ``(2) City fuel economy.--The city fuel economy with respect to 
    any vehicle shall be measured in a manner which is substantially 
    similar to the manner city fuel economy is measured in accordance 
    with procedures under part 600 of subchapter Q of chapter I of 
    title 40, Code of Federal Regulations, as in effect on the date of 
    the enactment of this section.
        ``(3) Other terms.--The terms `automobile', `passenger 
    automobile', `medium duty passenger vehicle', `light truck', and 
    `manufacturer' have the meanings given such terms in regulations 
    prescribed by the Administrator of the Environmental Protection 
    Agency for purposes of the administration of title II of the Clean 
    Air Act (42 U.S.C. 7521 et seq.).
        ``(4) Reduction in basis.--For purposes of this subtitle, the 
    basis of any property for which a credit is allowable under 
    subsection (a) shall be reduced by the amount of such credit so 
    allowed (determined without regard to subsection (g)).
        ``(5) No double benefit.--The amount of any deduction or other 
    credit allowable under this chapter--
            ``(A) for any incremental cost taken into account in 
        computing the amount of the credit determined under subsection 
        (e) shall be reduced by the amount of such credit attributable 
        to such cost, and
            ``(B) with respect to a vehicle described under subsection 
        (b) or (c), shall be reduced by the amount of credit allowed 
        under subsection (a) for such vehicle for the taxable year.
        ``(6) Property used by tax-exempt entity.--In the case of a 
    vehicle whose use is described in paragraph (3) or (4) of section 
    50(b) and which is not subject to a lease, the person who sold such 
    vehicle to the person or entity using such vehicle shall be treated 
    as the taxpayer that placed such vehicle in service, but only if 
    such person clearly discloses to such person or entity in a 
    document the amount of any credit allowable under subsection (a) 
    with respect to such vehicle (determined without regard to 
    subsection (g)).
        ``(7) Property used outside united states, etc., not 
    qualified.--No credit shall be allowable under subsection (a) with 
    respect to any property referred to in section 50(b)(1) or with 
    respect to the portion of the cost of any property taken into 
    account under section 179.
        ``(8) Recapture.--The Secretary shall, by regulations, provide 
    for recapturing the benefit of any credit allowable under 
    subsection (a) with respect to any property which ceases to be 
    property eligible for such credit (including recapture in the case 
    of a lease period of less than the economic life of a vehicle).
        ``(9) Election to not take credit.--No credit shall be allowed 
    under subsection (a) for any vehicle if the taxpayer elects to not 
    have this section apply to such vehicle.
        ``(10) Interaction with air quality and motor vehicle safety 
    standards.--Unless otherwise provided in this section, a motor 
    vehicle shall not be considered eligible for a credit under this 
    section unless such vehicle is in compliance with--
            ``(A) the applicable provisions of the Clean Air Act for 
        the applicable make and model year of the vehicle (or 
        applicable air quality provisions of State law in the case of a 
        State which has adopted such provision under a waiver under 
        section 209(b) of the Clean Air Act), and
            ``(B) the motor vehicle safety provisions of sections 30101 
        through 30169 of title 49, United States Code.
    ``(i) Regulations.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary shall promulgate such regulations as necessary to carry 
    out the provisions of this section.
        ``(2) Coordination in prescription of certain regulations.--The 
    Secretary of the Treasury, in coordination with the Secretary of 
    Transportation and the Administrator of the Environmental 
    Protection Agency, shall prescribe such regulations as necessary to 
    determine whether a motor vehicle meets the requirements to be 
    eligible for a credit under this section.
    ``(j) Termination.--This section shall not apply to any property 
purchased after--
        ``(1) in the case of a new qualified fuel cell motor vehicle 
    (as described in subsection (b)), December 31, 2014,
        ``(2) in the case of a new advanced lean burn technology motor 
    vehicle (as described in subsection (c)) or a new qualified hybrid 
    motor vehicle (as described in subsection (d)(2)(A)), December 31, 
    2010,
        ``(3) in the case of a new qualified hybrid motor vehicle (as 
    described in subsection (d)(2)(B)), December 31, 2009, and
        ``(4) in the case of a new qualified alternative fuel vehicle 
    (as described in subsection (e)), December 31, 2010.''.
    (b) Conforming Amendments.--
        (1) Section 38(b), as amended by this Act, is amended by 
    striking ``plus'' at the end of paragraph (23), by striking the 
    period at the end of paragraph (24) and inserting ``, and'', and by 
    adding at the end the following new paragraph:
        ``(25) the portion of the alternative motor vehicle credit to 
    which section 30B(g)(1) applies.''.
        (2) Section 1016(a), as amended by this Act, is amended by 
    striking ``and'' at the end of paragraph (34), by striking the 
    period at the end of paragraph (35) and inserting ``, and'', and by 
    adding at the end the following new paragraph:
        ``(36) to the extent provided in section 30B(h)(4).''.
        (3) Section 55(c)(2), as amended by this Act, is amended by 
    inserting ``30B(g)(2),'' after ``30(b)(2),''.
        (4) Section 6501(m) is amended by inserting ``30B(h)(9),'' 
    after ``30(d)(4),''.
        (5) The table of sections for subpart B of part IV of 
    subchapter A of chapter 1 is amended by inserting after the item 
    relating to section 30A the following new item:

``Sec. 30B. Alternative motor vehicle credit.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.

SEC. 1342. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING STATIONS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits), as amended by this Act, is amended by 
adding at the end the following new section:

``SEC. 30C. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
30 percent of the cost of any qualified alternative fuel vehicle 
refueling property placed in service by the taxpayer during the taxable 
year.
    ``(b) Limitation.--The credit allowed under subsection (a) with 
respect to any alternative fuel vehicle refueling property shall not 
exceed--
        ``(1) $30,000 in the case of a property of a character subject 
    to an allowance for depreciation, and
        ``(2) $1,000 in any other case.
    ``(c) Qualified Alternative Fuel Vehicle Refueling Property.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    term `qualified alternative fuel vehicle refueling property' has 
    the meaning given to such term by section 179A(d), but only with 
    respect to any fuel--
            ``(A) at least 85 percent of the volume of which consists 
        of one or more of the following: ethanol, natural gas, 
        compressed natural gas, liquefied natural gas, liquefied 
        petroleum gas, or hydrogen, or
            ``(B) any mixture of biodiesel (as defined in section 
        40A(d)(1)) and diesel fuel (as defined in section 4083(a)(3)), 
        determined without regard to any use of kerosene and containing 
        at least 20 percent biodiesel.
        ``(2) Residential property.--In the case of any property 
    installed on property which is used as the principal residence 
    (within the meaning of section 121) of the taxpayer, paragraph (1) 
    of section 179A(d) shall not apply.
    ``(d) Application With Other Credits.--
        ``(1) Business credit treated as part of general business 
    credit.--So much of the credit which would be allowed under 
    subsection (a) for any taxable year (determined without regard to 
    this subsection) that is attributable to property of a character 
    subject to an allowance for depreciation shall be treated as a 
    credit listed in section 38(b) for such taxable year (and not 
    allowed under subsection (a)).
        ``(2) Personal credit.--The credit allowed under subsection (a) 
    (after the application of paragraph (1)) for any taxable year shall 
    not exceed the excess (if any) of--
            ``(A) the regular tax reduced by the sum of the credits 
        allowable under subpart A and sections 27, 30, and 30B, over
            ``(B) the tentative minimum tax for the taxable year.
    ``(e) Special Rules.--For purposes of this section--
        ``(1) Basis reduction.--The basis of any property shall be 
    reduced by the portion of the cost of such property taken into 
    account under subsection (a).
        ``(2) Property used by tax-exempt entity.--In the case of any 
    qualified alternative fuel vehicle refueling property the use of 
    which is described in paragraph (3) or (4) of section 50(b) and 
    which is not subject to a lease, the person who sold such property 
    to the person or entity using such property shall be treated as the 
    taxpayer that placed such property in service, but only if such 
    person clearly discloses to such person or entity in a document the 
    amount of any credit allowable under subsection (a) with respect to 
    such property (determined without regard to subsection (d)).
        ``(3) Property used outside united states not qualified.--No 
    credit shall be allowable under subsection (a) with respect to any 
    property referred to in section 50(b)(1) or with respect to the 
    portion of the cost of any property taken into account under 
    section 179.
        ``(4) Election not to take credit.--No credit shall be allowed 
    under subsection (a) for any property if the taxpayer elects not to 
    have this section apply to such property.
        ``(5) Recapture rules.--Rules similar to the rules of section 
    179A(e)(4) shall apply.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(g) Termination.--This section shall not apply to any property 
placed in service--
        ``(1) in the case of property relating to hydrogen, after 
    December 31, 2014, and
        ``(2) in the case of any other property, after December 31, 
    2009.''.
    (b) Conforming Amendments.--
        (1) Section 38(b), as amended by this Act, is amended by 
    striking ``plus'' at the end of paragraph (24), by striking the 
    period at the end of paragraph (25) and inserting ``, and'', and by 
    adding at the end the following new paragraph:
        ``(26) the portion of the alternative fuel vehicle refueling 
    property credit to which section 30C(d)(1) applies.''.
        (2) Section 1016(a), as amended by this Act, is amended by 
    striking ``and'' at the end of paragraph (35), by striking the 
    period at the end of paragraph (36) and inserting ``, and'', and by 
    adding at the end the following new paragraph:
        ``(37) to the extent provided in section 30C(f).''.
        (3) Section 55(c)(2), as amended by this Act, is amended by 
    inserting ``30C(d)(2),'' after ``30B(g)(2),''.
        (4) Section 6501(m) is amended by inserting ``30C(e)(5),'' 
    after ``30B(h)(9),''.
        (5) The table of sections for subpart B of part IV of 
    subchapter A of chapter 1, as amended by this Act, is amended by 
    inserting after the item relating to section 30B the following new 
    item:

``Sec. 30C. Clean-fuel vehicle refueling property credit.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.

SEC. 1343. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL 
              FUEL.

    (a) In General.--Paragraph (2) of section 4081(a) is amended by 
adding at the end the following:
            ``(D) Diesel-water fuel emulsion.--In the case of diesel-
        water fuel emulsion at least 14 percent of which is water and 
        with respect to which the emulsion additive is registered by a 
        United States manufacturer with the Environmental Protection 
        Agency pursuant to section 211 of the Clean Air Act (as in 
        effect on March 31, 2003), subparagraph (A)(iii) shall be 
        applied by substituting `19.7 cents' for `24.3 cents'. The 
        preceding sentence shall not apply to the removal, sale, or use 
        of diesel-water fuel emulsion unless the person so removing, 
        selling, or using such fuel is registered under section 
        4101.''.
    (b) Special Rules for Diesel-Water Fuel Emulsions.--
        (1) Refunds for tax-paid purchases.--Section 6427 is amended by 
    redesignating subsections (m) through (p) as subsections (n) 
    through (q), respectively, and by inserting after subsection (l) 
    the following new subsection:
    ``(m) Diesel Fuel Used to Produce Emulsion.--
        ``(1) In general.--Except as provided in subsection (k), if any 
    diesel fuel on which tax was imposed by section 4081 at the regular 
    tax rate is used by any person in producing an emulsion described 
    in section 4081(a)(2)(D) which is sold or used in such person's 
    trade or business, the Secretary shall pay (without interest) to 
    such person an amount equal to the excess of the regular tax rate 
    over the incentive tax rate with respect to such fuel.
        ``(2) Definitions.--For purposes of paragraph (1)--
            ``(A) Regular tax rate.--The term `regular tax rate' means 
        the aggregate rate of tax imposed by section 4081 determined 
        without regard to section 4081(a)(2)(D).
            ``(B) Incentive tax rate.--The term `incentive tax rate' 
        means the aggregate rate of tax imposed by section 4081 
        determined with regard to section 4081(a)(2)(D).''.
        (2) Later separation of fuel.--Section 4081 (relating to 
    imposition of tax) is amended by inserting after subsection (b) the 
    following new subsection:
    ``(c) Later Separation of Fuel From Diesel-Water Fuel Emulsion.--If 
any person separates the taxable fuel from a diesel-water fuel emulsion 
on which tax was imposed under subsection (a) at a rate determined 
under subsection (a)(2)(D) (or with respect to which a credit or 
payment was allowed or made by reason of section 6427), such person 
shall be treated as the refiner of such taxable fuel. The amount of tax 
imposed on any removal of such fuel by such person shall be reduced by 
the amount of tax imposed (and not credited or refunded) on any prior 
removal or entry of such fuel.''.
        (3) Credit claims.--Paragraphs (1) and (2) of section 6427(i) 
    are both amended by inserting ``(m),'' after ``(l),''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2006.

SEC. 1344. EXTENSION OF EXCISE TAX PROVISIONS AND INCOME TAX CREDIT FOR 
              BIODIESEL.

    (a) In General.--Sections 40A(e), 6426(c)(6), and 6427(e)(4)(B) are 
each amended by striking ``2006'' and inserting ``2008''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1345. SMALL AGRI-BIODIESEL PRODUCER CREDIT.

    (a) In General.--Subsection (a) of section 40A (relating to 
biodiesel used as a fuel) is amended to read as follows:
    ``(a) General Rule.--For purposes of section 38, the biodiesel 
fuels credit determined under this section for the taxable year is an 
amount equal to the sum of--
        ``(1) the biodiesel mixture credit, plus
        ``(2) the biodiesel credit, plus
        ``(3) in the case of an eligible small agri-biodiesel producer, 
    the small agri-biodiesel producer credit.''.
    (b) Small Agri-Biodiesel Producer Credit Defined.--Section 40A(b) 
(relating to definition of biodiesel mixture credit and biodiesel 
credit) is amended by adding at the end the following new paragraph:
        ``(5) Small agri-biodiesel producer credit.--
            ``(A) In general.--The small agri-biodiesel producer credit 
        of any eligible small agri-biodiesel producer for any taxable 
        year is 10 cents for each gallon of qualified agri-biodiesel 
        production of such producer.
            ``(B) Qualified agri-biodiesel production.--For purposes of 
        this paragraph, the term `qualified agri-biodiesel production' 
        means any agri-biodiesel (determined without regard to the last 
        sentence of subsection (d)(2)) which is produced by an eligible 
        small agri-biodiesel producer, and which during the taxable 
        year--
                ``(i) is sold by such producer to another person--

                    ``(I) for use by such other person in the 
                production of a qualified biodiesel mixture in such 
                other person's trade or business (other than casual 
                off-farm production),
                    ``(II) for use by such other person as a fuel in a 
                trade or business, or
                    ``(III) who sells such agri-biodiesel at retail to 
                another person and places such agri-biodiesel in the 
                fuel tank of such other person, or

                ``(ii) is used or sold by such producer for any purpose 
            described in clause (i).
            ``(C) Limitation.--The qualified agri-biodiesel production 
        of any producer for any taxable year shall not exceed 
        15,000,000 gallons.''.
    (c) Definitions and Special Rules.--Section 40A is amended by 
redesignating subsection (e) as subsection (f) and by inserting after 
subsection (d) the following new subsection:
    ``(e) Definitions and Special Rules for Small Agri-Biodiesel 
Producer Credit.--For purposes of this section--
        ``(1) Eligible small agri-biodiesel producer.--The term 
    `eligible small agri-biodiesel producer' means a person who, at all 
    times during the taxable year, has a productive capacity for agri-
    biodiesel not in excess of 60,000,000 gallons.
        ``(2) Aggregation rule.--For purposes of the 15,000,000 gallon 
    limitation under subsection (b)(5)(C) and the 60,000,000 gallon 
    limitation under paragraph (1), all members of the same controlled 
    group of corporations (within the meaning of section 267(f)) and 
    all persons under common control (within the meaning of section 
    52(b) but determined by treating an interest of more than 50 
    percent as a controlling interest) shall be treated as 1 person.
        ``(3) Partnership, s corporation, and other pass-thru 
    entities.--In the case of a partnership, trust, S corporation, or 
    other pass-thru entity, the limitations contained in subsection 
    (b)(5)(C) and paragraph (1) shall be applied at the entity level 
    and at the partner or similar level.
        ``(4) Allocation.--For purposes of this subsection, in the case 
    of a facility in which more than 1 person has an interest, 
    productive capacity shall be allocated among such persons in such 
    manner as the Secretary may prescribe.
        ``(5) Regulations.--The Secretary may prescribe such 
    regulations as may be necessary--
            ``(A) to prevent the credit provided for in subsection 
        (a)(3) from directly or indirectly benefiting any person with a 
        direct or indirect productive capacity of more than 60,000,000 
        gallons of agri-biodiesel during the taxable year, or
            ``(B) to prevent any person from directly or indirectly 
        benefiting with respect to more than 15,000,000 gallons during 
        the taxable year.
        ``(6) Allocation of small agri-biodiesel credit to patrons of 
    cooperative.--
            ``(A) Election to allocate.--
                ``(i) In general.--In the case of a cooperative 
            organization described in section 1381(a), any portion of 
            the credit determined under subsection (a)(3) for the 
            taxable year may, at the election of the organization, be 
            apportioned pro rata among patrons of the organization on 
            the basis of the quantity or value of business done with or 
            for such patrons for the taxable year.
                ``(ii) Form and effect of election.--An election under 
            clause (i) for any taxable year shall be made on a timely 
            filed return for such year. Such election, once made, shall 
            be irrevocable for such taxable year. Such election shall 
            not take effect unless the organization designates the 
            apportionment as such in a written notice mailed to its 
            patrons during the payment period described in section 
            1382(d).
            ``(B) Treatment of organizations and patrons.--
                ``(i) Organizations.--The amount of the credit not 
            apportioned to patrons pursuant to subparagraph (A) shall 
            be included in the amount determined under subsection 
            (a)(3) for the taxable year of the organization.
                ``(ii) Patrons.--The amount of the credit apportioned 
            to patrons pursuant to subparagraph (A) shall be included 
            in the amount determined under such subsection for the 
            first taxable year of each patron ending on or after the 
            last day of the payment period (as defined in section 
            1382(d)) for the taxable year of the organization or, if 
            earlier, for the taxable year of each patron ending on or 
            after the date on which the patron receives notice from the 
            cooperative of the apportionment.
                ``(iii) Special rules for decrease in credits for 
            taxable year.--If the amount of the credit of the 
            organization determined under such subsection for a taxable 
            year is less than the amount of such credit shown on the 
            return of the organization for such year, an amount equal 
            to the excess of--

                    ``(I) such reduction, over
                    ``(II) the amount not apportioned to such patrons 
                under subparagraph (A) for the taxable year, shall be 
                treated as an increase in tax imposed by this chapter 
                on the organization. Such increase shall not be treated 
                as tax imposed by this chapter for purposes of 
                determining the amount of any credit under this chapter 
                or for purposes of section 55.''.

    (d) Conforming Amendments.--
        (1) Paragraph (4) of section 40A(b) is amended by striking 
    ``this section'' and inserting ``paragraph (1) or (2) of subsection 
    (a)''.
        (2) The heading of subsection (b) of section 40A is amended by 
    striking ``and Biodiesel Credit'' and inserting ``, Biodiesel 
    Credit, and Small Agri-biodiesel Producer Credit''.
        (3) Paragraph (3) of section 40A(d) is amended by redesignating 
    subparagraph (C) as subparagraph (D) and by inserting after 
    subparagraph (B) the following new subparagraph:
            ``(C) Producer credit.--If--
                ``(i) any credit was determined under subsection 
            (a)(3), and
                ``(ii) any person does not use such fuel for a purpose 
            described in subsection (b)(5)(B), then there is hereby 
            imposed on such person a tax equal to 10 cents a gallon for 
            each gallon of such agri-biodiesel.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 1346. RENEWABLE DIESEL.

    (a) In General.--Section 40A (relating to biodiesel used as fuel), 
as amended by this Act, is amended by redesignating subsection (f) as 
subsection (g) and by inserting after subsection (e) the following new 
subsection:
    ``(f) Renewable Diesel.--For purposes of this title--
        ``(1) Treatment in the same manner as biodiesel.--Except as 
    provided in paragraph (2), renewable diesel shall be treated in the 
    same manner as biodiesel.
        ``(2) Exceptions.--
            ``(A) Rate of credit.--Subsections (b)(1)(A) and (b)(2)(A) 
        shall be applied with respect to renewable diesel by 
        substituting `$1.00' for `50 cents'.
            ``(B) Nonapplication of certain credits.--Subsections 
        (b)(3) and (b)(5) shall not apply with respect to renewable 
        diesel.
        ``(3) Renewable diesel defined.--The term `renewable diesel' 
    means diesel fuel derived from biomass (as defined in section 
    45K(c)(3)) using a thermal depolymerization process which meets--
            ``(A) the registration requirements for fuels and fuel 
        additives established by the Environmental Protection Agency 
        under section 211 of the Clean Air Act (42 U.S.C. 7545), and
            ``(B) the requirements of the American Society of Testing 
        and Materials D975 or D396.''.
    (b) Clerical Amendments.--
        (1) The heading for section 40A is amended by inserting ``and 
    renewable diesel'' after ``biodiesel''.
        (2) The item in the table of contents for subpart D of part IV 
    of subchapter A of chapter 1 relating to section 40A is amended to 
    read as follows:

``Sec. 40A. Biodiesel and renewable diesel used as fuel.''.

    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fuel sold or used after December 31, 2005.

SEC. 1347. MODIFICATION OF SMALL ETHANOL PRODUCER CREDIT.

    (a) Definition of Small Ethanol Producer.--Section 40(g) (relating 
to definitions and special rules for eligible small ethanol producer 
credit) is amended by striking ``30,000,000'' each place it appears and 
inserting ``60,000,000''.
    (b) Written Notice of Election to Allocate Credit to Patrons.--
Section 40(g)(6)(A)(ii) (relating to form and effect of election) is 
amended by adding at the end the following new sentence: ``Such 
election shall not take effect unless the organization designates the 
apportionment as such in a written notice mailed to its patrons during 
the payment period described in section 1382(d).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 1348. SUNSET OF DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN 
              REFUELING PROPERTY.

    Subsection (f) of section 179A (relating to termination) is amended 
by striking ``December 31, 2006'' and inserting ``December 31, 2005''.

              Subtitle E--Additional Energy Tax Incentives

SEC. 1351. EXPANSION OF RESEARCH CREDIT.

    (a) Credit for Expenses Attributable to Certain Collaborative 
Energy Research Consortia.--
        (1) In general.--Section 41(a) (relating to credit for 
    increasing research activities) is amended by striking ``and'' at 
    the end of paragraph (1), by striking the period at the end of 
    paragraph (2) and inserting ``, and'', and by adding at the end the 
    following new paragraph:
        ``(3) 20 percent of the amounts paid or incurred by the 
    taxpayer in carrying on any trade or business of the taxpayer 
    during the taxable year (including as contributions) to an energy 
    research consortium.''.
        (2) Energy research consortium defined.--Section 41(f) 
    (relating to special rules) is amended by adding at the end the 
    following new paragraph:
        ``(6) Energy research consortium.--
            ``(A) In general.--The term `energy research consortium' 
        means any organization--
                ``(i) which is--

                    ``(I) described in section 501(c)(3) and is exempt 
                from tax under section 501(a) and is organized and 
                operated primarily to conduct energy research, or
                    ``(II) organized and operated primarily to conduct 
                energy research in the public interest (within the 
                meaning of section 501(c)(3)),

                ``(ii) which is not a private foundation,
                ``(iii) to which at least 5 unrelated persons paid or 
            incurred during the calendar year in which the taxable year 
            of the organization begins amounts (including as 
            contributions) to such organization for energy research, 
            and
                ``(iv) to which no single person paid or incurred 
            (including as contributions) during such calendar year an 
            amount equal to more than 50 percent of the total amounts 
            received by such organization during such calendar year for 
            energy research.
            ``(B) Treatment of persons.--All persons treated as a 
        single employer under subsection (a) or (b) of section 52 shall 
        be treated as related persons for purposes of subparagraph 
        (A)(iii) and as a single person for purposes of subparagraph 
        (A)(iv).''.
        (3) Conforming amendment.--Section 41(b)(3)(C) is amended by 
    inserting ``(other than an energy research consortium)'' after 
    ``organization''.
    (b) Repeal of Limitation on Contract Research Expenses Paid to 
Small Businesses, Universities, and Federal Laboratories.--Section 
41(b)(3) (relating to contract research expenses) is amended by adding 
at the end the following new subparagraph:
            ``(D) Amounts paid to eligible small businesses, 
        universities, and federal laboratories.--
                ``(i) In general.--In the case of amounts paid by the 
            taxpayer to--

                    ``(I) an eligible small business,
                    ``(II) an institution of higher education (as 
                defined in section 3304(f)), or
                    ``(III) an organization which is a Federal 
                laboratory,

            for qualified research which is energy research, 
            subparagraph (A) shall be applied by substituting `100 
            percent' for `65 percent'.
                ``(ii) Eligible small business.--For purposes of this 
            subparagraph, the term `eligible small business' means a 
            small business with respect to which the taxpayer does not 
            own (within the meaning of section 318) 50 percent or more 
            of--

                    ``(I) in the case of a corporation, the outstanding 
                stock of the corporation (either by vote or value), and
                    ``(II) in the case of a small business which is not 
                a corporation, the capital and profits interests of the 
                small business.

                ``(iii) Small business.--For purposes of this 
            subparagraph--

                    ``(I) In general.--The term `small business' means, 
                with respect to any calendar year, any person if the 
                annual average number of employees employed by such 
                person during either of the 2 preceding calendar years 
                was 500 or fewer. For purposes of the preceding 
                sentence, a preceding calendar year may be taken into 
                account only if the person was in existence throughout 
                the year.
                    ``(II) Startups, controlled groups, and 
                predecessors.--Rules similar to the rules of 
                subparagraphs (B) and (D) of section 220(c)(4) shall 
                apply for purposes of this clause.

                ``(iv) Federal laboratory.--For purposes of this 
            subparagraph, the term `Federal laboratory' has the meaning 
            given such term by section 4(6) of the Stevenson-Wydler 
            Technology Innovation Act of 1980 (15 U.S.C. 3703(6)), as 
            in effect on the date of the enactment of the Energy Tax 
            Incentives Act of 2005.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 1352. NATIONAL ACADEMY OF SCIENCES STUDY AND REPORT.

    (a) Study.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of the Treasury shall enter into an 
agreement with the National Academy of Sciences under which the 
National Academy of Sciences shall conduct a study to define and 
evaluate the health, environmental, security, and infrastructure 
external costs and benefits associated with the production and 
consumption of energy that are not or may not be fully incorporated 
into the market price of such energy, or into the Federal tax or fee or 
other applicable revenue measure related to such production or 
consumption.
    (b) Report.--Not later than 2 years after the date on which the 
agreement under subsection (a) is entered into, the National Academy of 
Sciences shall submit to Congress a report on the study conducted under 
subsection (a).

SEC. 1353. RECYCLING STUDY.

    (a) Study.--The Secretary of the Treasury, in consultation with the 
Secretary of Energy, shall conduct a study--
        (1) to determine and quantify the energy savings achieved 
    through the recycling of glass, paper, plastic, steel, aluminum, 
    and electronic devices, and
        (2) to identify tax incentives which would encourage recycling 
    of such material.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of the Treasury shall submit to Congress a 
report on the study conducted under subsection (a).

                 Subtitle F--Revenue Raising Provisions

SEC. 1361. OIL SPILL LIABILITY TRUST FUND FINANCING RATE.

    Section 4611(f) (relating to application of oil spill liability 
trust fund financing rate) is amended to read as follows:
    ``(f) Application of Oil Spill Liability Trust Fund Financing 
Rate.--
        ``(1) In general.--Except as provided in paragraphs (2) and 
    (3), the Oil Spill Liability Trust Fund financing rate under 
    subsection (c) shall apply on and after April 1, 2006, or if later, 
    the date which is 30 days after the last day of any calendar 
    quarter for which the Secretary estimates that, as of the close of 
    that quarter, the unobligated balance in the Oil Spill Liability 
    Trust Fund is less than $2,000,000,000.
        ``(2) Fund balance.--The Oil Spill Liability Trust Fund 
    financing rate shall not apply during a calendar quarter if the 
    Secretary estimates that, as of the close of the preceding calendar 
    quarter, the unobligated balance in the Oil Spill Liability Trust 
    Fund exceeds $2,700,000,000.
        ``(3) Termination.--The Oil Spill Liability Trust Fund 
    financing rate shall not apply after December 31, 2014.''.

SEC. 1362. EXTENSION OF LEAKING UNDERGROUND STORAGE TANK TRUST FUND 
              FINANCING RATE.

    (a) In General.--Paragraph (3) of section 4081(d) (relating to 
Leaking Underground Storage Tank Trust Fund financing rate) is amended 
by striking ``2005'' and inserting ``2011''.
    (b) No Exemptions From Tax Except for Exports.--
        (1) In general.--Section 4082(a) (relating to exemptions for 
    diesel fuel and kerosene) is amended by inserting ``(other than 
    such tax at the Leaking Underground Storage Tank Trust Fund 
    financing rate imposed in all cases other than for export)'' after 
    ``section 4081''.
        (2) Amendments relating to section 4041.--
            (A) Subsections (a)(1)(B), (a)(2)(A), and (c)(2) of section 
        4041 are each amended by inserting ``(other than such tax at 
        the Leaking Underground Storage Tank Trust Fund financing 
        rate)'' after ``section 4081''.
            (B) Section 4041(b)(1)(A) is amended by striking ``or 
        (d)(1))''.
            (C) Section 4041(d) is amended by adding at the end the 
        following new paragraph:
        ``(5) Nonapplication of exemptions other than for exports.--For 
    purposes of this section, the tax imposed under this subsection 
    shall be determined without regard to subsections (f), (g) (other 
    than with respect to any sale for export under paragraph (3) 
    thereof), (h), and (l).''.
        (3) No refund.--
            (A) In general.--Subchapter B of chapter 65 is amended by 
        adding at the end the following new section:

``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND STORAGE 
              TANK TRUST FUND FINANCING RATE.

    ``No refunds, credits, or payments shall be made under this 
subchapter for any tax imposed at the Leaking Underground Storage Tank 
Trust Fund financing rate, except in the case of fuels destined for 
export.''.
            (B) Clerical amendment.--The table of sections for 
        subchapter B of chapter 65 is amended by adding at the end the 
        following new item:

``Sec. 6430. Treatment of tax imposed at Leaking Underground Storage 
          Tank Trust Fund financing rate.''.

    (c) Certain Refunds and Credits Not Charged to LUST Trust Fund.--
Subsection (c) of section 9508 (relating to Leaking Underground Storage 
Tank Trust Fund) is amended to read as follows:
    ``(c) Expenditures.--Amounts in the Leaking Underground Storage 
Tank Trust Fund shall be available, as provided in appropriation Acts, 
only for purposes of making expenditures to carry out section 9003(h) 
of the Solid Waste Disposal Act as in effect on the date of the 
enactment of the Superfund Amendments and Reauthorization Act of 
1986.''.
    (d) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall take effect on October 1, 
    2005.
        (2) No exemption.--The amendments made by subsection (b) shall 
    apply to fuel entered, removed, or sold after September 30, 2005.

SEC. 1363. MODIFICATION OF RECAPTURE RULES FOR AMORTIZABLE SECTION 197 
              INTANGIBLES.

    (a) In General.--Subsection (b) of section 1245 (relating to gain 
from dispositions of certain depreciable property) is amended by adding 
at the end the following new paragraph:
        ``(9) Disposition of amortizable section 197 intangibles.--
            ``(A) In general.--If a taxpayer disposes of more than 1 
        amortizable section 197 intangible (as defined in section 
        197(c)) in a transaction or a series of related transactions, 
        all such amortizable 197 intangibles shall be treated as 1 
        section 1245 property for purposes of this section.
            ``(B) Exception.--Subparagraph (A) shall not apply to any 
        amortizable section 197 intangible (as so defined) with respect 
        to which the adjusted basis exceeds the fair market value.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions of property after the date of the enactment of this 
Act.

SEC. 1364. CLARIFICATION OF TIRE EXCISE TAX.

    (a) In General.--Section 4072(e) (defining super single tire) is 
amended by adding at the end the following: ``Such term shall not 
include any tire designed for steering.''
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 869 of the American Jobs Creation Act 
of 2004.
    (c) Study.--
        (1) In general.--With respect to the 1-year period beginning on 
    January 1, 2006, the Secretary of the Treasury shall conduct a 
    study to determine--
            (A) the amount of tax collected during such period under 
        section 4071 of the Internal Revenue Code of 1986 with respect 
        to each class of tire, and
            (B) the number of tires in each such class on which tax is 
        imposed under such section during such period.
        (2) Report.--Not later than July 1, 2007, the Secretary of the 
    Treasury shall submit to Congress a report on the study conducted 
    under paragraph (1).

                        TITLE XIV--MISCELLANEOUS
                         Subtitle A--In General

SEC. 1401. SENSE OF CONGRESS ON RISK ASSESSMENTS.

    Subtitle B of title XXX of the Energy Policy Act of 1992 is amended 
by adding at the end the following new section:

``SEC. 3022. SENSE OF CONGRESS ON RISK ASSESSMENTS.

    ``It is the sense of Congress that Federal agencies conducting 
assessments of risks to human health and the environment from energy 
technology, production, transport, transmission, distribution, storage, 
use, or conservation activities shall use sound and objective 
scientific practices in assessing such risks, shall consider the best 
available science (including peer reviewed studies), and shall include 
a description of the weight of the scientific evidence concerning such 
risks.''.

SEC. 1402. ENERGY PRODUCTION INCENTIVES.

    (a) In General.--A State may provide to any entity--
        (1) a credit against any tax or fee owed to the State under a 
    State law, or
        (2) any other tax incentive,
determined by the State to be appropriate, in the amount calculated 
under and in accordance with a formula determined by the State, for 
production described in subsection (b) in the State by the entity that 
receives such credit or such incentive.
    (b) Eligible Entities.--Subsection (a) shall apply with respect to 
the production in the State of electricity from coal mined in the State 
and used in a facility, if such production meets all applicable Federal 
and State laws and if such facility uses scrubbers or other forms of 
clean coal technology.
    (c) Effect on Interstate Commerce.--Any action taken by a State in 
accordance with this section with respect to a tax or fee payable, or 
incentive applicable, for any period beginning after the date of the 
enactment of this Act shall--
        (1) be considered to be a reasonable regulation of commerce; 
    and
        (2) not be considered to impose an undue burden on interstate 
    commerce or to otherwise impair, restrain, or discriminate, against 
    interstate commerce.

SEC. 1403. REGULATION OF CERTAIN OIL USED IN TRANSFORMERS.

    Notwithstanding any other provision of law, or rule promulgated by 
the Environmental Protection Agency, vegetable oil made from soybeans 
and used in electric transformers as thermal insulation shall not be 
regulated as an oil identified under section 2(a)(1)(B) of the Edible 
Oil Regulatory Reform Act (33 U.S.C. 2720(a)(1)(B)).

SEC. 1404. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH ASSESSMENT.

    (a) Establishment.--The Secretary shall conduct a study of direct 
and significant health impacts to persons resulting from living in 
proximity to petrochemical and oil refinery facilities. The Secretary 
shall consult with the Director of the National Cancer Institute and 
other Federal Government bodies with expertise in the field it deems 
appropriate in the design of such study. The study shall be conducted 
according to sound and objective scientific practices and present the 
weight of the scientific evidence. The Secretary shall obtain 
scientific peer review of the draft study.
    (b) Report to Congress.--The Secretary shall transmit the results 
of the study to Congress within 6 months of the enactment of this 
section.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section such 
sums as are necessary for the completion of the study.

SEC. 1405. NATIONAL PRIORITY PROJECT DESIGNATION.

    (a) Designation of National Priority Projects.--
        (1) In general.--There is established the National Priority 
    Project Designation (referred to in this section as the 
    ``Designation''), which shall be evidenced by a medal bearing the 
    inscription ``National Priority Project''.
        (2) Design and materials.--The medal shall be of such design 
    and materials and bear such additional inscriptions as the 
    President may prescribe.
    (b) Making and Presentation of Designation.--
        (1) In general.--The President, on the basis of recommendations 
    made by the Secretary, shall annually designate organizations that 
    have--
            (A) advanced the field of renewable energy technology and 
        contributed to North American energy independence; and
            (B) been certified by the Secretary under subsection (e).
        (2) Presentation.--The President shall designate projects with 
    such ceremonies as the President may prescribe.
        (3) Use of designation.--An organization that receives a 
    Designation under this section may publicize the Designation of the 
    organization as a National Priority Project in advertising.
        (4) Categories in which the designation may be given.--Separate 
    Designations shall be made to qualifying projects in each of the 
    following categories:
            (A) Wind and biomass energy generation projects.
            (B) Photovoltaic and fuel cell energy generation projects.
            (C) Energy efficient building and renewable energy 
        projects.
            (D) First-in-Class projects.
    (c) Selection Criteria.--
        (1) In general.--Certification and selection of the projects to 
    receive the Designation shall be based on criteria established 
    under this subsection.
        (2) Wind, biomass, and building projects.--In the case of a 
    wind, biomass, or building project, the project shall demonstrate 
    that the project will install not less than 30 megawatts of 
    renewable energy generation capacity.
        (3) Solar photovoltaic and fuel cell projects.--In the case of 
    a solar photovoltaic or fuel cell project, the project shall 
    demonstrate that the project will install not less than 3 megawatts 
    of renewable energy generation capacity.
        (4) Energy efficient building and renewable energy projects.--
    In the case of an energy efficient building or renewable energy 
    project, in addition to meeting the criteria established under 
    paragraph (2), each building project shall demonstrate that the 
    project will--
            (A) comply with third-party certification standards for 
        high-performance, sustainable buildings;
            (B) use whole-building integration of energy efficiency and 
        environmental performance design and technology, including 
        advanced building controls;
            (C) use renewable energy for at least 50 percent of the 
        energy consumption of the project;
            (D) comply with applicable Energy Star standards; and
            (E) include at least 5,000,000 square feet of enclosed 
        space.
        (5) First-in-class use.--Notwithstanding paragraphs (2) through 
    (4), a new building project may qualify under this section if the 
    Secretary determines that the project--
            (A) represents a First-In-Class use of renewable energy; or
            (B) otherwise establishes a new paradigm of building 
        integrated renewable energy use or energy efficiency.
    (d) Application.--
        (1) Initial applications.--No later than 120 days after the 
    date of enactment of this Act, and annually thereafter, the 
    Secretary shall publish in the Federal Register an invitation and 
    guidelines for submitting applications, consistent with this 
    section.
        (2) Contents.--The application shall describe the project, or 
    planned project, and the plans to meet the criteria established 
    under subsection (c).
    (e) Certification.--
        (1) In general.--Not later than 60 days after the application 
    period described in subsection (d), and annually thereafter, the 
    Secretary shall certify projects that are reasonably expected to 
    meet the criteria established under subsection (c).
        (2) Certified projects.--The Secretary shall designate 
    personnel of the Department to work with persons carrying out each 
    certified project and ensure that the personnel--
            (A) provide each certified project with guidance in meeting 
        the criteria established under subsection (c);
            (B) identify programs of the Department, including National 
        Laboratories and Technology Centers, that will assist each 
        project in meeting the criteria established under subsection 
        (c); and
            (C) ensure that knowledge and transfer of the most current 
        technology between the applicable resources of the Federal 
        Government (including the National Laboratories and Technology 
        Centers, the Department, and the Environmental Protection 
        Agency) and the certified projects is being facilitated to 
        accelerate commercialization of work developed through those 
        resources.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2006 through 2010.

SEC. 1406. COLD CRACKING.

    (a) Study.--The Secretary shall conduct a study of the application 
of radiation to petroleum at standard temperature and pressure to 
refine petroleum products, whose objective shall be to increase the 
economic yield from each barrel of oil.
    (b) Goals.--The goals of the study shall include--
        (1) increasing the value of our current oil supply;
        (2) reducing the capital investment cost for cracking oil;
        (3) reducing the operating energy cost for cracking oil; and
        (4) reducing sulfur content using an environmentally 
    responsible method.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $250,000 for fiscal year 2006.

SEC. 1407. OXYGEN-FUEL.

    (a) Program.--The Secretary shall establish a program on oxygen-
fuel systems. If feasible, the program shall include renovation of at 
least one existing large unit and one existing small unit, and 
construction of one new large unit and one new small unit.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section--
        (1) $100,000,000 for fiscal year 2006;
        (2) $100,000,000 for fiscal year 2007; and
        (3) $100,000,000 for fiscal year 2008.
    (c) Definitions.--For purposes of this section--
        (1) the term ``large unit'' means a unit with a generating 
    capacity of 100 megawatts or more;
        (2) the term ``oxygen-fuel systems'' means systems that utilize 
    fuel efficiency benefits of oil, gas, coal, and biomass combustion 
    using substantially pure oxygen, with high flame temperatures and 
    the exclusion of air from the boiler, in industrial or electric 
    utility steam generating units; and
        (3) the term ``small unit'' means a unit with a generating 
    capacity in the 10-50 megawatt range.

                      Subtitle B--Set America Free

SEC. 1421. SHORT TITLE.

    This subtitle may be cited as the ``Set America Free Act of 2005'' 
or the ``SAFE Act''.

SEC. 1422. PURPOSE.

    The purpose of this subtitle is to establish a United States 
commission to make recommendations for a coordinated and comprehensive 
North American energy policy that will achieve energy self-sufficiency 
by 2025 within the three contiguous North American nation area of 
Canada, Mexico, and the United States.

SEC. 1423. UNITED STATES COMMISSION ON NORTH AMERICAN ENERGY FREEDOM.

    (a) Establishment.--There is hereby established the United States 
Commission on North American Energy Freedom (in this subtitle referred 
to as the ``Commission''). The Federal Advisory Committee Act (5 U.S.C. 
App.), except sections 3, 7, and 12, does not apply to the Commission.
    (b) Membership.--
        (1) Appointment.--The Commission shall be composed of 16 
    members appointed by the President from among individuals described 
    in paragraph (2) who are knowledgeable on energy issues, including 
    oil and gas exploration and production, crude oil refining, oil and 
    gas pipelines, electricity production and transmission, coal, 
    unconventional hydrocarbon resources, fuel cells, motor vehicle 
    power systems, nuclear energy, renewable energy, biofuels, energy 
    efficiency, and energy conservation. The membership of the 
    Commission shall be balanced by area of expertise to the extent 
    consistent with maintaining the highest level of expertise on the 
    Commission. Members of the Commission may be citizens of Canada, 
    Mexico, or the United States, and the President shall ensure that 
    citizens of all three nations are appointed to the Commission.
        (2) Nominations.--The President shall appoint the members of 
    the Commission within 60 days after the effective date of this Act, 
    including individuals nominated as follows:
            (A) Four members shall be appointed from amongst 
        individuals independently determined by the President to be 
        qualified for appointment.
            (B) Four members shall be appointed from a list of eight 
        individuals who shall be nominated by the majority leader of 
        the Senate in consultation with the chairman of the Committee 
        on Energy and Natural Resources of the Senate.
            (C) Four members shall be appointed from a list of eight 
        individuals who shall be nominated by the Speaker of the House 
        of Representatives in consultation with the chairmen of the 
        Committees on Energy and Commerce and Resources of the House of 
        Representatives.
            (D) Two members shall be appointed from a list of four 
        individuals who shall be nominated by the minority leader of 
        the Senate in consultation with the ranking Member of the 
        Committee on Energy and Natural Resources of the Senate.
            (E) Two members shall be appointed from a list of four 
        individuals who shall be nominated by the minority leader of 
        the House in consultation with the ranking Members of the 
        Committees on Energy and Commerce and Resources of the House of 
        Representatives.
        (3) Chairman.--The chairman of the Commission shall be selected 
    by the President. The chairman of the Commission shall be 
    responsible for--
            (A) the assignment of duties and responsibilities among 
        staff personnel and their continuing supervision; and
            (B) the use and expenditure of funds available to the 
        Commission.
        (4) Vacancies.--Any vacancy on the Commission shall be filled 
    in the same manner as the original incumbent was appointed.
    (c) Resources.--In carrying out its functions under this section, 
the Commission--
        (1) is authorized to secure directly from any Federal agency or 
    department any information it deems necessary to carry out its 
    functions under this Act, and each such agency or department is 
    authorized to cooperate with the Commission and, to the extent 
    permitted by law, to furnish such information (other than 
    information described in section 552(b)(1)(A) of title 5, United 
    States Code) to the Commission, upon the request of the Commission;
        (2) may enter into contracts, subject to the availability of 
    appropriations for contracting, and employ such staff experts and 
    consultants as may be necessary to carry out the duties of the 
    Commission, as provided by section 3109 of title 5, United States 
    Code; and
        (3) shall establish a multidisciplinary science and technical 
    advisory panel of experts in the field of energy to assist the 
    Commission in preparing its report, including ensuring that the 
    scientific and technical information considered by the Commission 
    is based on the best scientific and technical information 
    available.
    (d) Staffing.--The chairman of the Commission may, without regard 
to the civil service laws and regulations, appoint and terminate an 
executive director and such other additional personnel as may be 
necessary for the Commission to perform its duties. The executive 
director shall be compensated at a rate not to exceed the rate payable 
for Level IV of the Executive Schedule under chapter 5136 of title 5, 
United States Code. The chairman shall select staff from among 
qualified citizens of Canada, Mexico, and the United States of America.
    (e) Meetings.--
        (1) Administration.--All meetings of the Commission shall be 
    open to the public, except that a meeting or any portion of it may 
    be closed to the public if it concerns matters or information 
    described in section 552b(c) of title 5, United States Code. 
    Interested persons shall be permitted to appear at open meetings 
    and present oral or written statements on the subject matter of the 
    meeting. The Commission may administer oaths or affirmations to any 
    person appearing before it.
        (2) Notice; minutes; public availability of documents.--
            (A) Notice.--All open meetings of the Commission shall be 
        preceded by timely public notice in the Federal Register of the 
        time, place, and subject of the meeting.
            (B) Minutes.--Minutes of each meeting shall be kept and 
        shall contain a record of the people present, a description of 
        the discussion that occurred, and copies of all statements 
        filed. Subject to section 552 of title 5, United States Code, 
        the minutes and records of all meetings and other documents 
        that were made available to or prepared for the Commission 
        shall be available for public inspection and copying at a 
        single location in the offices of the Commission.
        (3) Initial meeting.--The Commission shall hold its first 
    meeting within 30 days after all 16 members have been appointed.
    (f) Report.--Within 12 months after the effective date of this Act, 
the Commission shall submit to Congress and the President a final 
report of its findings and recommendations regarding North American 
energy freedom.
    (g) Administrative Procedure for Report and Review.--Chapter 5 and 
chapter 7 of title 5, United States Code, do not apply to the 
preparation, review, or submission of the report required by subsection 
(f).
    (h) Termination.--The Commission shall cease to exist 90 days after 
the date on which it submits its final report.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this chapter a total of $10,000,000 for the 2 
fiscal-year period beginning with fiscal year 2005, such sums to remain 
available until expended.

SEC. 1424. NORTH AMERICAN ENERGY FREEDOM POLICY.

    Within 90 days after receiving and considering the report and 
recommendations of the Commission under section 1423, the President 
shall submit to Congress a statement of proposals to implement or 
respond to the Commission's recommendations for a coordinated, 
comprehensive, and long-range national policy to achieve North American 
energy freedom by 2025.

                   TITLE XV--ETHANOL AND MOTOR FUELS
                     Subtitle A--General Provisions

SEC. 1501. RENEWABLE CONTENT OF GASOLINE.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
        (1) by redesignating subsection (o) as subsection (r); and
        (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
        ``(1) Definitions.--In this section:
            ``(A) Cellulosic biomass ethanol.--The term `cellulosic 
        biomass ethanol' means ethanol derived from any lignocellulosic 
        or hemicellulosic matter that is available on a renewable or 
        recurring basis, including--
                ``(i) dedicated energy crops and trees;
                ``(ii) wood and wood residues;
                ``(iii) plants;
                ``(iv) grasses;
                ``(v) agricultural residues;
                ``(vi) fibers;
                ``(vii) animal wastes and other waste materials; and
                ``(viii) municipal solid waste.
        The term also includes any ethanol produced in facilities where 
        animal wastes or other waste materials are digested or 
        otherwise used to displace 90 percent or more of the fossil 
        fuel normally used in the production of ethanol.
            ``(B) Waste derived ethanol.--The term `waste derived 
        ethanol' means ethanol derived from--
                ``(i) animal wastes, including poultry fats and poultry 
            wastes, and other waste materials; or
                ``(ii) municipal solid waste.
            ``(C) Renewable fuel.--
                ``(i) In general.--The term `renewable fuel' means 
            motor vehicle fuel that--

                    ``(I)(aa) is produced from grain, starch, oilseeds, 
                vegetable, animal, or fish materials including fats, 
                greases, and oils, sugarcane, sugar beets, sugar 
                components, tobacco, potatoes, or other biomass; or
                    ``(bb) is natural gas produced from a biogas 
                source, including a landfill, sewage waste treatment 
                plant, feedlot, or other place where decaying organic 
                material is found; and
                    ``(II) is used to replace or reduce the quantity of 
                fossil fuel present in a fuel mixture used to operate a 
                motor vehicle.

                ``(ii) Inclusion.--The term `renewable fuel' includes--

                    ``(I) cellulosic biomass ethanol and `waste derived 
                ethanol'; and
                    ``(II) biodiesel (as defined in section 312(f) of 
                the Energy Policy Act of 1992 (42 U.S.C. 13220(f))) and 
                any blending components derived from renewable fuel 
                (provided that only the renewable fuel portion of any 
                such blending component shall be considered part of the 
                applicable volume under the renewable fuel program 
                established by this subsection).

            ``(D) Small refinery.--The term `small refinery' means a 
        refinery for which the average aggregate daily crude oil 
        throughput for a calendar year (as determined by dividing the 
        aggregate throughput for the calendar year by the number of 
        days in the calendar year) does not exceed 75,000 barrels.
        ``(2) Renewable fuel program.--
            ``(A) Regulations.--
                ``(i) In general.--Not later than 1 year after the date 
            of enactment of this paragraph, the Administrator shall 
            promulgate regulations to ensure that gasoline sold or 
            introduced into commerce in the United States (except in 
            noncontiguous States or territories), on an annual average 
            basis, contains the applicable volume of renewable fuel 
            determined in accordance with subparagraph (B).
                ``(ii) Noncontiguous state opt-in.--

                    ``(I) In general.--On the petition of a 
                noncontiguous State or territory, the Administrator may 
                allow the renewable fuel program established under this 
                subsection to apply in the noncontiguous State or 
                territory at the same time or any time after the 
                Administrator promulgates regulations under this 
                subparagraph.
                    ``(II) Other actions.--In carrying out this clause, 
                the Administrator may--

                        ``(aa) issue or revise regulations under this 
                    paragraph;
                        ``(bb) establish applicable percentages under 
                    paragraph (3);
                        ``(cc) provide for the generation of credits 
                    under paragraph (5); and
                        ``(dd) take such other actions as are necessary 
                    to allow for the application of the renewable fuels 
                    program in a noncontiguous State or territory.
                ``(iii) Provisions of regulations.--Regardless of the 
            date of promulgation, the regulations promulgated under 
            clause (i)--

                    ``(I) shall contain compliance provisions 
                applicable to refineries, blenders, distributors, and 
                importers, as appropriate, to ensure that the 
                requirements of this paragraph are met; but
                    ``(II) shall not--

                        ``(aa) restrict geographic areas in which 
                    renewable fuel may be used; or
                        ``(bb) impose any per-gallon obligation for the 
                    use of renewable fuel.
                ``(iv) Requirement in case of failure to promulgate 
            regulations.--If the Administrator does not promulgate 
            regulations under clause (i), the percentage of renewable 
            fuel in gasoline sold or dispensed to consumers in the 
            United States, on a volume basis, shall be 2.78 percent for 
            calendar year 2006.
            ``(B) Applicable volume.--
                ``(i) Calendar years 2006 through 2012.--For the 
            purpose of subparagraph (A), the applicable volume for any 
            of calendar years 2006 through 2012 shall be determined in 
            accordance with the following table:

                                     Applicable volume of renewable fuel
                ``Calendar year:
                                               (in billions of gallons):
                    2006......................................


                                                                     4.0

                    2007......................................


                                                                     4.7

                    2008......................................


                                                                     5.4

                    2009......................................


                                                                     6.1

                    2010......................................


                                                                     6.8

                    2011......................................


                                                                     7.4

                    2012......................................


                                                                    7.5.

                ``(ii) Calendar year 2013 and thereafter.--Subject to 
            clauses (iii) and (iv), for the purposes of subparagraph 
            (A), the applicable volume for calendar year 2013 and each 
            calendar year thereafter shall be determined by the 
            Administrator, in coordination with the Secretary of 
            Agriculture and the Secretary of Energy, based on a review 
            of the implementation of the program during calendar years 
            2006 through 2012, including a review of--

                    ``(I) the impact of the use of renewable fuels on 
                the environment, air quality, energy security, job 
                creation, and rural economic development; and
                    ``(II) the expected annual rate of future 
                production of renewable fuels, including cellulosic 
                ethanol.

                ``(iii) Minimum quantity derived from cellulosic 
            biomass.--For calendar year 2013 and each calendar year 
            thereafter--

                    ``(I) the applicable volume referred to in clause 
                (ii) shall contain a minimum of 250,000,000 gallons 
                that are derived from cellulosic biomass; and
                    ``(II) the 2.5-to-1 ratio referred to in paragraph 
                (4) shall not apply.

                ``(iv) Minimum applicable volume.--For the purpose of 
            subparagraph (A), the applicable volume for calendar year 
            2013 and each calendar year thereafter shall be equal to 
            the product obtained by multiplying--

                    ``(I) the number of gallons of gasoline that the 
                Administrator estimates will be sold or introduced into 
                commerce in the calendar year; and
                    ``(II) the ratio that--

                        ``(aa) 7,500,000,000 gallons of renewable fuel; 
                    bears to
                        ``(bb) the number of gallons of gasoline sold 
                    or introduced into commerce in calendar year 2012.
        ``(3) Applicable percentages.--
            ``(A) Provision of estimate of volumes of gasoline sales.--
        Not later than October 31 of each of calendar years 2005 
        through 2011, the Administrator of the Energy Information 
        Administration shall provide to the Administrator of the 
        Environmental Protection Agency an estimate, with respect to 
        the following calendar year, of the volumes of gasoline 
        projected to be sold or introduced into commerce in the United 
        States.
            ``(B) Determination of applicable percentages.--
                ``(i) In general.--Not later than November 30 of each 
            of calendar years 2005 through 2012, based on the estimate 
            provided under subparagraph (A), the Administrator of the 
            Environmental Protection Agency shall determine and publish 
            in the Federal Register, with respect to the following 
            calendar year, the renewable fuel obligation that ensures 
            that the requirements of paragraph (2) are met.
                ``(ii) Required elements.--The renewable fuel 
            obligation determined for a calendar year under clause (i) 
            shall--

                    ``(I) be applicable to refineries, blenders, and 
                importers, as appropriate;
                    ``(II) be expressed in terms of a volume percentage 
                of gasoline sold or introduced into commerce in the 
                United States; and
                    ``(III) subject to subparagraph (C)(i), consist of 
                a single applicable percentage that applies to all 
                categories of persons specified in subclause (I).

            ``(C) Adjustments.--In determining the applicable 
        percentage for a calendar year, the Administrator shall make 
        adjustments--
                ``(i) to prevent the imposition of redundant 
            obligations on any person specified in subparagraph 
            (B)(ii)(I); and
                ``(ii) to account for the use of renewable fuel during 
            the previous calendar year by small refineries that are 
            exempt under paragraph (9).
        ``(4) Cellulosic biomass ethanol or waste derived ethanol.--For 
    the purpose of paragraph (2), 1 gallon of cellulosic biomass 
    ethanol or waste derived ethanol shall be considered to be the 
    equivalent of 2.5 gallons of renewable fuel.
        ``(5) Credit program.--
            ``(A) In general.--The regulations promulgated under 
        paragraph (2)(A) shall provide--
                ``(i) for the generation of an appropriate amount of 
            credits by any person that refines, blends, or imports 
            gasoline that contains a quantity of renewable fuel that is 
            greater than the quantity required under paragraph (2);
                ``(ii) for the generation of an appropriate amount of 
            credits for biodiesel; and
                ``(iii) for the generation of credits by small 
            refineries in accordance with paragraph (9)(C).
            ``(B) Use of credits.--A person that generates credits 
        under subparagraph (A) may use the credits, or transfer all or 
        a portion of the credits to another person, for the purpose of 
        complying with paragraph (2).
            ``(C) Duration of credits.--A credit generated under this 
        paragraph shall be valid to show compliance for the 12 months 
        as of the date of generation.
            ``(D) Inability to generate or purchase sufficient 
        credits.--The regulations promulgated under paragraph (2)(A) 
        shall include provisions allowing any person that is unable to 
        generate or purchase sufficient credits to meet the 
        requirements of paragraph (2) to carry forward a renewable fuel 
        deficit on condition that the person, in the calendar year 
        following the year in which the renewable fuel deficit is 
        created--
                ``(i) achieves compliance with the renewable fuel 
            requirement under paragraph (2); and
                ``(ii) generates or purchases additional renewable fuel 
            credits to offset the renewable fuel deficit of the 
            previous year.
        ``(6) Seasonal variations in renewable fuel use.--
            ``(A) Study.--For each of calendar years 2006 through 2012, 
        the Administrator of the Energy Information Administration 
        shall conduct a study of renewable fuel blending to determine 
        whether there are excessive seasonal variations in the use of 
        renewable fuel.
            ``(B) Regulation of excessive seasonal variations.--If, for 
        any calendar year, the Administrator of the Energy Information 
        Administration, based on the study under subparagraph (A), 
        makes the determinations specified in subparagraph (C), the 
        Administrator of the Environmental Protection Agency shall 
        promulgate regulations to ensure that 25 percent or more of the 
        quantity of renewable fuel necessary to meet the requirements 
        of paragraph (2) is used during each of the 2 periods specified 
        in subparagraph (D) of each subsequent calendar year.
            ``(C) Determinations.--The determinations referred to in 
        subparagraph (B) are that--
                ``(i) less than 25 percent of the quantity of renewable 
            fuel necessary to meet the requirements of paragraph (2) 
            has been used during 1 of the 2 periods specified in 
            subparagraph (D) of the calendar year;
                ``(ii) a pattern of excessive seasonal variation 
            described in clause (i) will continue in subsequent 
            calendar years; and
                ``(iii) promulgating regulations or other requirements 
            to impose a 25 percent or more seasonal use of renewable 
            fuels will not prevent or interfere with the attainment of 
            national ambient air quality standards or significantly 
            increase the price of motor fuels to the consumer.
            ``(D) Periods.--The 2 periods referred to in this paragraph 
        are--
                ``(i) April through September; and
                ``(ii) January through March and October through 
            December.
            ``(E) Exclusion.--Renewable fuel blended or consumed in 
        calendar year 2006 in a State that has received a waiver under 
        section 209(b) shall not be included in the study under 
        subparagraph (A).
            ``(F) State exemption from seasonality requirements.--
        Notwithstanding any other provision of law, the seasonality 
        requirement relating to renewable fuel use established by this 
        paragraph shall not apply to any State that has received a 
        waiver under section 209(b) or any State dependent on 
        refineries in such State for gasoline supplies.
        ``(7) Waivers.--
            ``(A) In general.--The Administrator, in consultation with 
        the Secretary of Agriculture and the Secretary of Energy, may 
        waive the requirements of paragraph (2) in whole or in part on 
        petition by one or more States by reducing the national 
        quantity of renewable fuel required under paragraph (2)--
                ``(i) based on a determination by the Administrator, 
            after public notice and opportunity for comment, that 
            implementation of the requirement would severely harm the 
            economy or environment of a State, a region, or the United 
            States; or
                ``(ii) based on a determination by the Administrator, 
            after public notice and opportunity for comment, that there 
            is an inadequate domestic supply.
            ``(B) Petitions for waivers.--The Administrator, in 
        consultation with the Secretary of Agriculture and the 
        Secretary of Energy, shall approve or disapprove a State 
        petition for a waiver of the requirements of paragraph (2) 
        within 90 days after the date on which the petition is received 
        by the Administrator.
            ``(C) Termination of waivers.--A waiver granted under 
        subparagraph (A) shall terminate after 1 year, but may be 
        renewed by the Administrator after consultation with the 
        Secretary of Agriculture and the Secretary of Energy.
        ``(8) Study and waiver for initial year of program.--
            ``(A) In general.--Not later than 180 days after the date 
        of enactment of this paragraph, the Secretary of Energy shall 
        conduct for the Administrator a study assessing whether the 
        renewable fuel requirement under paragraph (2) will likely 
        result in significant adverse impacts on consumers in 2006, on 
        a national, regional, or State basis.
            ``(B) Required evaluations.--The study shall evaluate 
        renewable fuel--
                ``(i) supplies and prices;
                ``(ii) blendstock supplies; and
                ``(iii) supply and distribution system capabilities.
            ``(C) Recommendations by the secretary.--Based on the 
        results of the study, the Secretary of Energy shall make 
        specific recommendations to the Administrator concerning waiver 
        of the requirements of paragraph (2), in whole or in part, to 
        prevent any adverse impacts described in subparagraph (A).
            ``(D) Waiver.--
                ``(i) In general.--Not later than 270 days after the 
            date of enactment of this paragraph, the Administrator 
            shall, if and to the extent recommended by the Secretary of 
            Energy under subparagraph (C), waive, in whole or in part, 
            the renewable fuel requirement under paragraph (2) by 
            reducing the national quantity of renewable fuel required 
            under paragraph (2) in calendar year 2006.
                ``(ii) No effect on waiver authority.--Clause (i) does 
            not limit the authority of the Administrator to waive the 
            requirements of paragraph (2) in whole, or in part, under 
            paragraph (7).
        ``(9) Small refineries.--
            ``(A) Temporary exemption.--
                ``(i) In general.--The requirements of paragraph (2) 
            shall not apply to small refineries until calendar year 
            2011.
                ``(ii) Extension of exemption.--

                    ``(I) Study by secretary of energy.--Not later than 
                December 31, 2008, the Secretary of Energy shall 
                conduct for the Administrator a study to determine 
                whether compliance with the requirements of paragraph 
                (2) would impose a disproportionate economic hardship 
                on small refineries.
                    ``(II) Extension of exemption.--In the case of a 
                small refinery that the Secretary of Energy determines 
                under subclause (I) would be subject to a 
                disproportionate economic hardship if required to 
                comply with paragraph (2), the Administrator shall 
                extend the exemption under clause (i) for the small 
                refinery for a period of not less than 2 additional 
                years.

            ``(B) Petitions based on disproportionate economic 
        hardship.--
                ``(i) Extension of exemption.--A small refinery may at 
            any time petition the Administrator for an extension of the 
            exemption under subparagraph (A) for the reason of 
            disproportionate economic hardship.
                ``(ii) Evaluation of petitions.--In evaluating a 
            petition under clause (i), the Administrator, in 
            consultation with the Secretary of Energy, shall consider 
            the findings of the study under subparagraph (A)(ii) and 
            other economic factors.
                ``(iii) Deadline for action on petitions.--The 
            Administrator shall act on any petition submitted by a 
            small refinery for a hardship exemption not later than 90 
            days after the date of receipt of the petition.
            ``(C) Credit program.--If a small refinery notifies the 
        Administrator that the small refinery waives the exemption 
        under subparagraph (A), the regulations promulgated under 
        paragraph (2)(A) shall provide for the generation of credits by 
        the small refinery under paragraph (5) beginning in the 
        calendar year following the date of notification.
            ``(D) Opt-in for small refineries.--A small refinery shall 
        be subject to the requirements of paragraph (2) if the small 
        refinery notifies the Administrator that the small refinery 
        waives the exemption under subparagraph (A).
        ``(10) Ethanol market concentration analysis.--
            ``(A) Analysis.--
                ``(i) In general.--Not later than 180 days after the 
            date of enactment of this paragraph, and annually 
            thereafter, the Federal Trade Commission shall perform a 
            market concentration analysis of the ethanol production 
            industry using the Herfindahl-Hirschman Index to determine 
            whether there is sufficient competition among industry 
            participants to avoid price-setting and other 
            anticompetitive behavior.
                ``(ii) Scoring.--For the purpose of scoring under 
            clause (i) using the Herfindahl-Hirschman Index, all 
            marketing arrangements among industry participants shall be 
            considered.
            ``(B) Report.--Not later than December 1, 2005, and 
        annually thereafter, the Federal Trade Commission shall submit 
        to Congress and the Administrator a report on the results of 
        the market concentration analysis performed under subparagraph 
        (A)(i).''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
        (1) in paragraph (1)--
            (A) in the first sentence, by striking ``or (n)'' each 
        place it appears and inserting ``(n), or (o)''; and
            (B) in the second sentence, by striking ``or (m)'' and 
        inserting ``(m), or (o)''; and
        (2) in the first sentence of paragraph (2), by striking ``and 
    (n)'' each place it appears and inserting ``(n), and (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
        (1) by redesignating paragraph (5) as paragraph (6); and
        (2) by inserting after paragraph (4) the following:
        ``(5) Exclusion from ethanol waiver.--
            ``(A) Promulgation of regulations.--Upon notification, 
        accompanied by supporting documentation, from the Governor of a 
        State that the Reid vapor pressure limitation established by 
        paragraph (4) will increase emissions that contribute to air 
        pollution in any area in the State, the Administrator shall, by 
        regulation, apply, in lieu of the Reid vapor pressure 
        limitation established by paragraph (4), the Reid vapor 
        pressure limitation established by paragraph (1) to all fuel 
        blends containing gasoline and 10 percent denatured anhydrous 
        ethanol that are sold, offered for sale, dispensed, supplied, 
        offered for supply, transported, or introduced into commerce in 
        the area during the high ozone season.
            ``(B) Deadline for promulgation.--The Administrator shall 
        promulgate regulations under subparagraph (A) not later than 90 
        days after the date of receipt of a notification from a 
        Governor under that subparagraph.
            ``(C) Effective date.--
                ``(i) In general.--With respect to an area in a State 
            for which the Governor submits a notification under 
            subparagraph (A), the regulations under that subparagraph 
            shall take effect on the later of--

                    ``(I) the first day of the first high ozone season 
                for the area that begins after the date of receipt of 
                the notification; or
                    ``(II) 1 year after the date of receipt of the 
                notification.

                ``(ii) Extension of effective date based on 
            determination of insufficient supply.--

                    ``(I) In general.--If, after receipt of a 
                notification with respect to an area from a Governor of 
                a State under subparagraph (A), the Administrator 
                determines, on the Administrator's own motion or on 
                petition of any person and after consultation with the 
                Secretary of Energy, that the promulgation of 
                regulations described in subparagraph (A) would result 
                in an insufficient supply of gasoline in the State, the 
                Administrator, by regulation--

                        ``(aa) shall extend the effective date of the 
                    regulations under clause (i) with respect to the 
                    area for not more than 1 year; and
                        ``(bb) may renew the extension under item (aa) 
                    for two additional periods, each of which shall not 
                    exceed 1 year.

                    ``(II) Deadline for action on petitions.--The 
                Administrator shall act on any petition submitted under 
                subclause (I) not later than 180 days after the date of 
                receipt of the petition.''.

    (d) Survey of Renewable Fuel Market.--
        (1) Survey and report.--Not later than December 1, 2006, and 
    annually thereafter, the Administrator of the Environmental 
    Protection Agency (in consultation with the Secretary acting 
    through the Administrator of the Energy Information Administration) 
    shall--
            (A) conduct, with respect to each conventional gasoline use 
        area and each reformulated gasoline use area in each State, a 
        survey to determine the market shares of--
                (i) conventional gasoline containing ethanol;
                (ii) reformulated gasoline containing ethanol;
                (iii) conventional gasoline containing renewable fuel; 
            and
                (iv) reformulated gasoline containing renewable fuel; 
            and
            (B) submit to Congress, and make publicly available, a 
        report on the results of the survey under subparagraph (A).
        (2) Recordkeeping and reporting requirements.--The 
    Administrator of the Environmental Protection Agency (hereinafter 
    in this subsection referred to as the ``Administrator'') may 
    require any refiner, blender, or importer to keep such records and 
    make such reports as are necessary to ensure that the survey 
    conducted under paragraph (1) is accurate. The Administrator, to 
    avoid duplicative requirements, shall rely, to the extent 
    practicable, on existing reporting and recordkeeping requirements 
    and other information available to the Administrator including 
    gasoline distribution patterns that include multistate use areas.
        (3) Applicable law.--Activities carried out under this 
    subsection shall be conducted in a manner designed to protect 
    confidentiality of individual responses.

SEC. 1502. FINDINGS.

    Congress finds that--
        (1) since 1979, methyl tertiary butyl ether (hereinafter in 
    this section referred to as ``MTBE'') has been used nationwide at 
    low levels in gasoline to replace lead as an octane booster or 
    anti-knocking agent;
        (2) Public Law 101-549 (commonly known as the ``Clean Air Act 
    Amendments of 1990'') (42 U.S.C. 7401 et seq.) established a fuel 
    oxygenate standard under which reformulated gasoline must contain 
    at least 2 percent oxygen by weight; and
        (3) the fuel industry responded to the fuel oxygenate standard 
    established by Public Law 101-549 by making substantial investments 
    in--
            (A) MTBE production capacity; and
            (B) systems to deliver MTBE-containing gasoline to the 
        marketplace.

SEC. 1503. CLAIMS FILED AFTER ENACTMENT.

    Claims and legal actions filed after the date of enactment of this 
Act related to allegations involving actual or threatened contamination 
of methyl tertiary butyl ether (MTBE) may be removed to the appropriate 
United States district court.

SEC. 1504. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
        (1) In general.--Section 211(k) of the Clean Air Act (42 U.S.C. 
    7545(k)) is amended--
            (A) in paragraph (2)--
                (i) in the second sentence of subparagraph (A), by 
            striking ``(including the oxygen content requirement 
            contained in subparagraph (B))'';
                (ii) by striking subparagraph (B); and
                (iii) by redesignating subparagraphs (C) and (D) as 
            subparagraphs (B) and (C), respectively;
            (B) in paragraph (3)(A), by striking clause (v); and
            (C) in paragraph (7)--
                (i) in subparagraph (A)--

                    (I) by striking clause (i); and
                    (II) by redesignating clauses (ii) and (iii) as 
                clauses (i) and (ii), respectively; and

                (ii) in subparagraph (C)--

                    (I) by striking clause (ii); and
                    (II) by redesignating clause (iii) as clause (ii).

        (2) Applicability.--The amendments made by paragraph (1) 
    apply--
            (A) in the case of a State that has received a waiver under 
        section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)), 
        beginning on the date of enactment of this Act; and
            (B) in the case of any other State, beginning 270 days 
        after the date of enactment of this Act.
    (b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
        (1) by striking ``Within 1 year after the enactment of the 
    Clean Air Act Amendments of 1990,'' and inserting the following:
            ``(A) In general.--Not later than November 15, 1991,''; and
        (2) by adding at the end the following:
            ``(B) Maintenance of toxic air pollutant emissions 
        reductions from reformulated gasoline.--
                ``(i) Definition of padd.--In this subparagraph the 
            term `PADD' means a Petroleum Administration for Defense 
            District.
                ``(ii) Regulations concerning emissions of toxic air 
            pollutants.--Not later than 270 days after the date of 
            enactment of this subparagraph, the Administrator shall 
            establish by regulation, for each refinery or importer 
            (other than a refiner or importer in a State that has 
            received a waiver under section 209(b) with respect to 
            gasoline produced for use in that State), standards for 
            toxic air pollutants from use of the reformulated gasoline 
            produced or distributed by the refiner or importer that 
            maintain the reduction of the average annual aggregate 
            emissions of toxic air pollutants for reformulated gasoline 
            produced or distributed by the refiner or importer during 
            calendar years 2001 and 2002 (as determined on the basis of 
            data collected by the Administrator with respect to the 
            refiner or importer).
                ``(iii) Standards applicable to specific refineries or 
            importers.--

                    ``(I) Applicability of standards.--For any calendar 
                year, the standards applicable to a refiner or importer 
                under clause (ii) shall apply to the quantity of 
                gasoline produced or distributed by the refiner or 
                importer in the calendar year only to the extent that 
                the quantity is less than or equal to the average 
                annual quantity of reformulated gasoline produced or 
                distributed by the refiner or importer during calendar 
                years 2001 and 2002.
                    ``(II) Applicability of other standards.--For any 
                calendar year, the quantity of gasoline produced or 
                distributed by a refiner or importer that is in excess 
                of the quantity subject to subclause (I) shall be 
                subject to standards for emissions of toxic air 
                pollutants promulgated under subparagraph (A) and 
                paragraph (3)(B).

                ``(iv) Credit program.--The Administrator shall provide 
            for the granting and use of credits for emissions of toxic 
            air pollutants in the same manner as provided in paragraph 
            (7).
                ``(v) Regional protection of toxics reduction 
            baselines.--

                    ``(I) In general.--Not later than 60 days after the 
                date of enactment of this subparagraph, and not later 
                than April 1 of each calendar year that begins after 
                that date of enactment, the Administrator shall publish 
                in the Federal Register a report that specifies, with 
                respect to the previous calendar year--

                        ``(aa) the quantity of reformulated gasoline 
                    produced that is in excess of the average annual 
                    quantity of reformulated gasoline produced in 2001 
                    and 2002; and
                        ``(bb) the reduction of the average annual 
                    aggregate emissions of toxic air pollutants in each 
                    PADD, based on retail survey data or data from 
                    other appropriate sources.

                    ``(II) Effect of failure to maintain aggregate 
                toxics reductions.--If, in any calendar year, the 
                reduction of the average annual aggregate emissions of 
                toxic air pollutants in a PADD fails to meet or exceed 
                the reduction of the average annual aggregate emissions 
                of toxic air pollutants in the PADD in calendar years 
                2001 and 2002, the Administrator, not later than 90 
                days after the date of publication of the report for 
                the calendar year under subclause (I), shall--

                        ``(aa) identify, to the maximum extent 
                    practicable, the reasons for the failure, including 
                    the sources, volumes, and characteristics of 
                    reformulated gasoline that contributed to the 
                    failure; and
                        ``(bb) promulgate revisions to the regulations 
                    promulgated under clause (ii), to take effect not 
                    earlier than 180 days but not later than 270 days 
                    after the date of promulgation, to provide that, 
                    notwithstanding clause (iii)(II), all reformulated 
                    gasoline produced or distributed at each refiner or 
                    importer shall meet the standards applicable under 
                    clause (iii)(I) beginning not later than April 1 of 
                    the calendar year following publication of the 
                    report under subclause (I) and in each calendar 
                    year thereafter.
                ``(vi) Not later than July 1, 2007, the Administrator 
            shall promulgate final regulations to control hazardous air 
            pollutants from motor vehicles and motor vehicle fuels, as 
            provided for in section 80.1045 of title 40, Code of 
            Federal Regulations (as in effect on the date of enactment 
            of this subparagraph), and as authorized under section 
            202(1) of the Clean Air Act. If the Administrator 
            promulgates by such date, final regulations to control 
            hazardous air pollutants from motor vehicles and motor 
            vehicle fuels that achieve and maintain greater overall 
            reductions in emissions of air toxics from reformulated 
            gasoline than the reductions that would be achieved under 
            section 211(k)(1)(B) of the Clean Air Act as amended by 
            this clause, then sections 211(k)(1)(B)(i) through 
            211(k)(1)(B)(v) shall be null and void and regulations 
            promulgated thereunder shall be rescinded and have no 
            further effect.''.
    (c) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall revise the 
reformulated gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations, to consolidate the regulations 
applicable to VOC-Control Regions 1 and 2 under section 80.41 of that 
title by eliminating the less stringent requirements applicable to 
gasoline designated for VOC-Control Region 2 and instead applying the 
more stringent requirements applicable to gasoline designated for VOC-
Control Region 1.
    (d) Savings Clause.--
        (1) In general.--Nothing in this section or any amendment made 
    by this section affects or prejudices any legal claim or action 
    with respect to regulations promulgated by the Administrator before 
    the date of enactment of this Act regarding--
            (A) emissions of toxic air pollutants from motor vehicles; 
        or
            (B) the adjustment of standards applicable to a specific 
        refinery or importer made under those regulations.
        (2) Adjustment of standards.--
            (A) Applicability.--The Administrator may apply any 
        adjustments to the standards applicable to a refinery or 
        importer under subparagraph (B)(iii)(I) of section 211(k)(1) of 
        the Clean Air Act (as added by subsection (b)(2)), except 
        that--
                (i) the Administrator shall revise the adjustments to 
            be based only on calendar years 1999 and 2000;
                (ii) any such adjustment shall not be made at a level 
            below the average percentage of reductions of emissions of 
            toxic air pollutants for reformulated gasoline supplied to 
            PADD I during calendar years 1999 and 2000; and
                (iii) in the case of an adjustment based on toxic air 
            pollutant emissions from reformulated gasoline 
            significantly below the national annual average emissions 
            of toxic air pollutants from all reformulated gasoline--

                    (I) the Administrator may revise the adjustment to 
                take account of the scope of the prohibition on methyl 
                tertiary butyl ether imposed by a State; and
                    (II) any such adjustment shall require the refiner 
                or importer, to the maximum extent practicable, to 
                maintain the reduction achieved during calendar years 
                1999 and 2000 in the average annual aggregate emissions 
                of toxic air pollutants from reformulated gasoline 
                produced or distributed by the refiner or importer.

SEC. 1505. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
        (1) in paragraph (2)--
            (A) by striking ``may also'' and inserting ``shall, on a 
        regular basis,''; and
            (B) by striking subparagraph (A) and inserting the 
        following:
            ``(A) to conduct tests to determine potential public health 
        and environmental effects of the fuel or additive (including 
        carcinogenic, teratogenic, or mutagenic effects); and''; and
        (2) by adding at the end the following:
        ``(4) Study on certain fuel additives and blendstocks.--
            ``(A) In general.--Not later than 2 years after the date of 
        enactment of this paragraph, the Administrator shall--
                ``(i) conduct a study on the effects on public health 
            (including the effects on children, pregnant women, 
            minority or low-income communities, and other sensitive 
            populations), air quality, and water resources of increased 
            use of, and the feasibility of using as substitutes for 
            methyl tertiary butyl ether in gasoline--

                    ``(I) ethyl tertiary butyl ether;
                    ``(II) tertiary amyl methyl ether;
                    ``(III) di-isopropyl ether;
                    ``(IV) tertiary butyl alcohol;
                    ``(V) other ethers and heavy alcohols, as 
                determined by then Administrator;
                    ``(VI) ethanol;
                    ``(VII) iso-octane; and
                    ``(VIII) alkylates; and

                ``(ii) conduct a study on the effects on public health 
            (including the effects on children, pregnant women, 
            minority or low-income communities, and other sensitive 
            populations), air quality, and water resources of the 
            adjustment for ethanol-blended reformulated gasoline to the 
            volatile organic compounds performance requirements that 
            are applicable under paragraphs (1) and (3) of section 
            211(k); and
                ``(iii) submit to the Committee on Environment and 
            Public Works of the Senate and the Committee on Energy and 
            Commerce of the House of Representatives a report 
            describing the results of the studies under clauses (i) and 
            (ii).
            ``(B) Contracts for study.--In carrying out this paragraph, 
        the Administrator may enter into one or more contracts with 
        nongovernmental entities such as--
                ``(i) the national energy laboratories; and
                ``(ii) institutions of higher education (as defined in 
            section 101 of the Higher Education Act of 1965 (20 U.S.C. 
            1001)).''.

SEC. 1506. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
inserting after subsection (p) the following:
    ``(q) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
        ``(1) Anti-backsliding analysis.--
            ``(A) Draft analysis.--Not later than 4 years after the 
        date of enactment of this paragraph, the Administrator shall 
        publish for public comment a draft analysis of the changes in 
        emissions of air pollutants and air quality due to the use of 
        motor vehicle fuel and fuel additives resulting from 
        implementation of the amendments made by the Energy Policy Act 
        of 2005.
            ``(B) Final analysis.--After providing a reasonable 
        opportunity for comment but not later than 5 years after the 
        date of enactment of this paragraph, the Administrator shall 
        publish the analysis in final form.
        ``(2) Emissions model.--For the purposes of this section, not 
    later than 4 years after the date of enactment of this paragraph, 
    the Administrator shall develop and finalize an emissions model 
    that reflects, to the maximum extent practicable, the effects of 
    gasoline characteristics or components on emissions from vehicles 
    in the motor vehicle fleet during calendar year 2007.
        ``(3) Permeation effects study.--
            ``(A) In general.--Not later than 1 year after the date of 
        enactment of this paragraph, the Administrator shall conduct a 
        study, and report to Congress the results of the study, on the 
        effects of ethanol content in gasoline on permeation, the 
        process by which fuel molecules migrate through the elastomeric 
        materials (rubber and plastic parts) that make up the fuel and 
        fuel vapor systems of a motor vehicle.
            ``(B) Evaporative emissions.--The study shall include 
        estimates of the increase in total evaporative emissions likely 
        to result from the use of gasoline with ethanol content in a 
        motor vehicle, and the fleet of motor vehicles, due to 
        permeation.''.

SEC. 1507. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
        (1) by striking ``(6) Opt-in areas.--(A) Upon'' and inserting 
    the following:
        ``(6) Opt-in areas.--
            ``(A) Classified areas.--
                ``(i) In general.--Upon'';
        (2) in subparagraph (B), by striking ``(B) If'' and inserting 
    the following:
                ``(ii) Effect of insufficient domestic capacity to 
            produce reformulated gasoline.--If'';
        (3) in subparagraph (A)(ii) (as redesignated by paragraph 
    (2))--
            (A) in the first sentence, by striking ``subparagraph (A)'' 
        and inserting ``clause (i)''; and
            (B) in the second sentence, by striking ``this paragraph'' 
        and inserting ``this subparagraph''; and
        (4) by adding at the end the following:
            ``(B) Ozone transport region.--
                ``(i) Application of prohibition.--

                    ``(I) In general.--On application of the Governor 
                of a State in the ozone transport region established by 
                section 184(a), the Administrator, not later than 180 
                days after the date of receipt of the application, 
                shall apply the prohibition specified in paragraph (5) 
                to any area in the State (other than an area classified 
                as a marginal, moderate, serious, or severe ozone 
                nonattainment area under subpart 2 of part D of title 
                I) unless the Administrator determines under clause 
                (iii) that there is insufficient capacity to supply 
                reformulated gasoline.
                    ``(II) Publication of application.--As soon as 
                practicable after the date of receipt of an application 
                under subclause (I), the Administrator shall publish 
                the application in the Federal Register.

                ``(ii) Period of applicability.--Under clause (i), the 
            prohibition specified in paragraph (5) shall apply in a 
            State--

                    ``(I) commencing as soon as practicable but not 
                later than 2 years after the date of approval by the 
                Administrator of the application of the Governor of the 
                State; and
                    ``(II) ending not earlier than 4 years after the 
                commencement date determined under subclause (I).

                ``(iii) Extension of commencement date based on 
            insufficient capacity.--

                    ``(I) In general.--If, after receipt of an 
                application from a Governor of a State under clause 
                (i), the Administrator determines, on the 
                Administrator's own motion or on petition of any 
                person, after consultation with the Secretary of 
                Energy, that there is insufficient capacity to supply 
                reformulated gasoline, the Administrator, by 
                regulation--

                        ``(aa) shall extend the commencement date with 
                    respect to the State under clause (ii)(I) for not 
                    more than 1 year; and
                        ``(bb) may renew the extension under item (aa) 
                    for 2 additional periods, each of which shall not 
                    exceed 1 year.

                    ``(II) Deadline for action on petitions.--The 
                Administrator shall act on any petition submitted under 
                subclause (I) not later than 180 days after the date of 
                receipt of the petition.''.

SEC. 1508. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) Renewable Fuels Survey.--(1) In order to improve the ability 
to evaluate the effectiveness of the Nation's renewable fuels mandate, 
the Administrator shall conduct and publish the results of a survey of 
renewable fuels demand in the motor vehicle fuels market in the United 
States monthly, and in a manner designed to protect the confidentiality 
of individual responses. In conducting the survey, the Administrator 
shall collect information both on a national and regional basis, 
including each of the following:
        ``(A) The quantity of renewable fuels produced.
        ``(B) The quantity of renewable fuels blended.
        ``(C) The quantity of renewable fuels imported.
        ``(D) The quantity of renewable fuels demanded.
        ``(E) Market price data.
        ``(F) Such other analyses or evaluations as the Administrator 
    finds are necessary to achieve the purposes of this section.
    ``(2) The Administrator shall also collect or estimate information 
both on a national and regional basis, pursuant to subparagraphs (A) 
through (F) of paragraph (1), for the 5 years prior to implementation 
of this subsection.
    ``(3) This subsection does not affect the authority of the 
Administrator to collect data under section 52 of the Federal Energy 
Administration Act of 1974 (15 U.S.C. 790a).''.

SEC. 1509. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
        (1) In general.--The Administrator of the Environmental 
    Protection Agency and the Secretary shall jointly conduct a study 
    of Federal, State, and local requirements concerning motor vehicle 
    fuels, including--
            (A) requirements relating to reformulated gasoline, 
        volatility (measured in Reid vapor pressure), oxygenated fuel, 
        and diesel fuel; and
            (B) other requirements that vary from State to State, 
        region to region, or locality to locality.
        (2) Required elements.--The study shall assess--
            (A) the effect of the variety of requirements described in 
        paragraph (1) on the supply, quality, and price of motor 
        vehicle fuels available to the consumer;
            (B) the effect of the requirements described in paragraph 
        (1) on achievement of--
                (i) national, regional, and local air quality standards 
            and goals; and
                (ii) related environmental and public health protection 
            standards and goals (including the protection of children, 
            pregnant women, minority or low-income communities, and 
            other sensitive populations);
            (C) the effect of Federal, State, and local motor vehicle 
        fuel regulations, including multiple motor vehicle fuel 
        requirements, on--
                (i) domestic refiners;
                (ii) the fuel distribution system; and
                (iii) industry investment in new capacity;
            (D) the effect of the requirements described in paragraph 
        (1) on emissions from vehicles, refiners, and fuel handling 
        facilities;
            (E) the feasibility of developing national or regional 
        motor vehicle fuel slates for the 48 contiguous States that, 
        while protecting and improving air quality at the national, 
        regional, and local levels, could--
                (i) enhance flexibility in the fuel distribution 
            infrastructure and improve fuel fungibility;
                (ii) reduce price volatility and costs to consumers and 
            producers;
                (iii) provide increased liquidity to the gasoline 
            market; and
                (iv) enhance fuel quality, consistency, and supply;
            (F) the feasibility of providing incentives, and the need 
        for the development of national standards necessary, to promote 
        cleaner burning motor vehicle fuel; and
            (G) the extent to which improvements in air quality and any 
        increases or decreases in the price of motor fuel can be 
        projected to result from the Environmental Protection Agency's 
        Tier II requirements for conventional gasoline and vehicle 
        emission systems, on-road and off-road diesel rules, the 
        reformulated gasoline program, the renewable content 
        requirements established by this subtitle, State programs 
        regarding gasoline volatility, and any other requirements 
        imposed by the Federal Government, States or localities 
        affecting the composition of motor fuel.
    (b) Report.--
        (1) In general.--Not later than June 1, 2008, the Administrator 
    of the Environmental Protection Agency and the Secretary shall 
    submit to Congress a report on the results of the study conducted 
    under subsection (a).
        (2) Recommendations.--
            (A) In general.--The report shall contain recommendations 
        for legislative and administrative actions that may be taken--
                (i) to improve air quality;
                (ii) to reduce costs to consumers and producers; and
                (iii) to increase supply liquidity.
            (B) Required considerations.--The recommendations under 
        subparagraph (A) shall take into account the need to provide 
        advance notice of required modifications to refinery and fuel 
        distribution systems in order to ensure an adequate supply of 
        motor vehicle fuel in all States.
        (3) Consultation.--In developing the report, the Administrator 
    of the Environmental Protection Agency and the Secretary shall 
    consult with--
            (A) the Governors of the States;
            (B) automobile manufacturers;
            (C) State and local air pollution control regulators;
            (D) public health experts;
            (E) motor vehicle fuel producers and distributors; and
            (F) the public.

SEC. 1510. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE AND 
              CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.

    (a) Definition of Municipal Solid Waste.--In this section, the term 
``municipal solid waste'' has the meaning given the term ``solid 
waste'' in section 1004 of the Solid Waste Disposal Act (42 U.S.C. 
6903).
    (b) Establishment of Program.--The Secretary shall establish a 
program to provide guarantees of loans by private institutions for the 
construction of facilities for the processing and conversion of 
municipal solid waste and cellulosic biomass into fuel ethanol and 
other commercial byproducts.
    (c) Requirements.--The Secretary may provide a loan guarantee under 
subsection (b) to an applicant if--
        (1) without a loan guarantee, credit is not available to the 
    applicant under reasonable terms or conditions sufficient to 
    finance the construction of a facility described in subsection (b);
        (2) the prospective earning power of the applicant and the 
    character and value of the security pledged provide a reasonable 
    assurance of repayment of the loan to be guaranteed in accordance 
    with the terms of the loan; and
        (3) the loan bears interest at a rate determined by the 
    Secretary to be reasonable, taking into account the current average 
    yield on outstanding obligations of the United States with 
    remaining periods of maturity comparable to the maturity of the 
    loan.
    (d) Criteria.--In selecting recipients of loan guarantees from 
among applicants, the Secretary shall give preference to proposals 
that--
        (1) meet all applicable Federal and State permitting 
    requirements;
        (2) are most likely to be successful; and
        (3) are located in local markets that have the greatest need 
    for the facility because of--
            (A) the limited availability of land for waste disposal;
            (B) the availability of sufficient quantities of cellulosic 
        biomass; or
            (C) a high level of demand for fuel ethanol or other 
        commercial byproducts of the facility.
    (e) Maturity.--A loan guaranteed under subsection (b) shall have a 
maturity of not more than 20 years.
    (f) Terms and Conditions.--The loan agreement for a loan guaranteed 
under subsection (b) shall provide that no provision of the loan 
agreement may be amended or waived without the consent of the 
Secretary.
    (g) Assurance of Repayment.--The Secretary shall require that an 
applicant for a loan guarantee under subsection (b) provide an 
assurance of repayment in the form of a performance bond, insurance, 
collateral, or other means acceptable to the Secretary in an amount 
equal to not less than 20 percent of the amount of the loan.
    (h) Guarantee Fee.--The recipient of a loan guarantee under 
subsection (b) shall pay the Secretary an amount determined by the 
Secretary to be sufficient to cover the administrative costs of the 
Secretary relating to the loan guarantee.
    (i) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
section. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee shall be 
incontestable in the hands of a holder of the guaranteed loan.
    (j) Reports.--Until each guaranteed loan under this section has 
been repaid in full, the Secretary shall annually submit to Congress a 
report on the activities of the Secretary under this section.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (l) Termination of Authority.--The authority of the Secretary to 
issue a loan guarantee under subsection (b) terminates on the date that 
is 10 years after the date of enactment of this Act.

SEC. 1511. RENEWABLE FUEL.

    The Clean Air Act is amended by inserting after section 211 (42 
U.S.C. 7411) the following:

``SEC. 212. RENEWABLE FUEL.

    ``(a) Definitions.--In this section:
        ``(1) Municipal solid waste.--The term `municipal solid waste' 
    has the meaning given the term `solid waste' in section 1004 of the 
    Solid Waste Disposal Act (42 U.S.C. 6903).
        ``(2) RFG state.--The term `RFG State' means a State in which 
    is located one or more covered areas (as defined in section 
    211(k)(10)(D)).
        ``(3) Secretary.--The term `Secretary' means the Secretary of 
    Energy.
    ``(b) Cellulosic Biomass Ethanol and Municipal Solid Waste Loan 
Guarantee Program.--
        ``(1) In general.--Funds may be provided for the cost (as 
    defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
    seq.)) of loan guarantees issued under title XIV of the Energy 
    Policy Act to carry out commercial demonstration projects for 
    celluosic biomass and sucrose-derived ethanol.
        ``(2) Demonstration projects.--
            ``(A) In general.--The Secretary shall issue loan 
        guarantees under this section to carry out not more than 4 
        projects to commercially demonstrate the feasibility and 
        viability of producing cellulosic biomass ethanol or sucrose-
        derived ethanol, including at least 1 project that uses cereal 
        straw as a feedstock and 1 project that uses municipal solid 
        waste as a feedstock.
            ``(B) Design capacity.--Each project shall have a design 
        capacity to produce at least 30,000,000 gallons of cellulosic 
        biomass ethanol each year.
        ``(3) Applicant assurances.--An applicant for a loan guarantee 
    under this section shall provide assurances, satisfactory to the 
    Secretary, that--
            ``(A) the project design has been validated through the 
        operation of a continuous process facility with a cumulative 
        output of at least 50,000 gallons of ethanol;
            ``(B) the project has been subject to a full technical 
        review;
            ``(C) the project is covered by adequate project 
        performance guarantees;
            ``(D) the project, with the loan guarantee, is economically 
        viable; and
            ``(E) there is a reasonable assurance of repayment of the 
        guaranteed loan.
        ``(4) Limitations.--
            ``(A) Maximum guarantee.--Except as provided in 
        subparagraph (B), a loan guarantee under this section may be 
        issued for up to 80 percent of the estimated cost of a project, 
        but may not exceed $250,000,000 for a project.
            ``(B) Additional guarantees.--
                ``(i) In general.--The Secretary may issue additional 
            loan guarantees for a project to cover up to 80 percent of 
            the excess of actual project cost over estimated project 
            cost but not to exceed 15 percent of the amount of the 
            original guarantee.
                ``(ii) Principal and interest.--Subject to subparagraph 
            (A), the Secretary shall guarantee 100 percent of the 
            principal and interest of a loan made under subparagraph 
            (A).
        ``(5) Equity contributions.--To be eligible for a loan 
    guarantee under this section, an applicant for the loan guarantee 
    shall have binding commitments from equity investors to provide an 
    initial equity contribution of at least 20 percent of the total 
    project cost.
        ``(6) Insufficient amounts.--If the amount made available to 
    carry out this section is insufficient to allow the Secretary to 
    make loan guarantees for 3 projects described in subsection (b), 
    the Secretary shall issue loan guarantees for one or more 
    qualifying projects under this section in the order in which the 
    applications for the projects are received by the Secretary.
        ``(7) Approval.--An application for a loan guarantee under this 
    section shall be approved or disapproved by the Secretary not later 
    than 90 days after the application is received by the Secretary.
    ``(c) Authorization of Appropriations for Resource Center.--There 
is authorized to be appropriated, for a resource center to further 
develop bioconversion technology using low-cost biomass for the 
production of ethanol at the Center for Biomass-Based Energy at the 
Mississippi State University and the Oklahoma State University, 
$4,000,000 for each of fiscal years 2005 through 2007.
    ``(d) Renewable Fuel Production Research and Development Grants.--
        ``(1) In general.--The Administrator shall provide grants for 
    the research into, and development and implementation of, renewable 
    fuel production technologies in RFG States with low rates of 
    ethanol production, including low rates of production of cellulosic 
    biomass ethanol.
        ``(2) Eligibility.--
            ``(A) In general.--The entities eligible to receive a grant 
        under this subsection are academic institutions in RFG States, 
        and consortia made up of combinations of academic institutions, 
        industry, State government agencies, or local government 
        agencies in RFG States, that have proven experience and 
        capabilities with relevant technologies.
            ``(B) Application.--To be eligible to receive a grant under 
        this subsection, an eligible entity shall submit to the 
        Administrator an application in such manner and form, and 
        accompanied by such information, as the Administrator may 
        specify.
        ``(3) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection $25,000,000 for each 
    of fiscal years 2006 through 2010.
    ``(e) Cellulosic Biomass Ethanol Conversion Assistance.--
        ``(1) In general.--The Secretary may provide grants to merchant 
    producers of cellulosic biomass ethanol in the United States to 
    assist the producers in building eligible production facilities 
    described in paragraph (2) for the production of cellulosic biomass 
    ethanol.
        ``(2) Eligible production facilities.--A production facility 
    shall be eligible to receive a grant under this subsection if the 
    production facility--
            ``(A) is located in the United States; and
            ``(B) uses cellulosic biomass feedstocks derived from 
        agricultural residues or municipal solid waste.
        ``(3) Authorization of appropriations.--There is authorized to 
    be appropriated to carry out this subsection--
            ``(A) $250,000,000 for fiscal year 2006; and
            ``(B) $400,000,000 for fiscal year 2007.''.

SEC. 1512. CONVERSION ASSISTANCE FOR CELLULOSIC BIOMASS, WASTE-DERIVED 
              ETHANOL, APPROVED RENEWABLE FUELS.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
adding at the end the following:
    ``(r) Conversion Assistance for Cellulosic Biomass, Waste-Derived 
Ethanol, Approved Renewable Fuels.--
        ``(1) In general.--The Secretary of Energy may provide grants 
    to merchant producers of cellulosic biomass ethanol, waste-derived 
    ethanol, and approved renewable fuels in the United States to 
    assist the producers in building eligible production facilities 
    described in paragraph (2) for the production of ethanol or 
    approved renewable fuels.
        ``(2) Eligible production facilities.--A production facility 
    shall be eligible to receive a grant under this subsection if the 
    production facility--
            ``(A) is located in the United States; and
            ``(B) uses cellulosic or renewable biomass or waste-derived 
        feedstocks derived from agricultural residues, wood residues, 
        municipal solid waste, or agricultural byproducts.
        ``(3) Authorization of appropriations.--There are authorized to 
    be appropriated the following amounts to carry out this subsection:
            ``(A) $100,000,000 for fiscal year 2006.
            ``(B) $250,000,000 for fiscal year 2007.
            ``(C) $400,000,000 for fiscal year 2008.
        ``(4) Definitions.--For the purposes of this subsection:
            ``(A) The term `approved renewable fuels' are fuels and 
        components of fuels that have been approved by the Department 
        of Energy, as defined in section 301 of the Energy Policy Act 
        of 1992 (42 U.S.C. 13211), which have been made from renewable 
        biomass.
            ``(B) The term `renewable biomass' is, as defined in 
        Presidential Executive Order 13134, published in the Federal 
        Register on August 16, 1999, any organic matter that is 
        available on a renewable or recurring basis (excluding old-
        growth timber), including dedicated energy crops and trees, 
        agricultural food and feed crop residues, aquatic plants, 
        animal wastes, wood and wood residues, paper and paper 
        residues, and other vegetative waste materials. Old-growth 
        timber means timber of a forest from the late successional 
        stage of forest development.''.

SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
adding at the end the following:
    ``(s) Blending of Compliant Reformulated Gasolines.--
        ``(1) In general.--Notwithstanding subsections (h) and (k) and 
    subject to the limitations in paragraph (2) of this subsection, it 
    shall not be a violation of this subtitle for a gasoline retailer, 
    during any month of the year, to blend at a retail location batches 
    of ethanol-blended and non-ethanol-blended reformulated gasoline, 
    provided that--
            ``(A) each batch of gasoline to be blended has been 
        individually certified as in compliance with subsections (h) 
        and (k) prior to being blended;
            ``(B) the retailer notifies the Administrator prior to such 
        blending, and identifies the exact location of the retail 
        station and the specific tank in which such blending will take 
        place;
            ``(C) the retailer retains and, as requested by the 
        Administrator or the Administrator's designee, makes available 
        for inspection such certifications accounting for all gasoline 
        at the retail outlet; and
            ``(D) the retailer does not, between June 1 and September 
        15 of each year, blend a batch of VOC-controlled, or `summer', 
        gasoline with a batch of non-VOC-controlled, or `winter', 
        gasoline (as these terms are defined under subsections (h) and 
        (k)).
        ``(2) Limitations.--
            ``(A) Frequency limitation.--A retailer shall only be 
        permitted to blend batches of compliant reformulated gasoline 
        under this subsection a maximum of two blending periods between 
        May 1 and September 15 of each calendar year.
            ``(B) Duration of blending period.--Each blending period 
        authorized under subparagraph (A) shall extend for a period of 
        no more than 10 consecutive calendar days.
        ``(3) Surveys.--A sample of gasoline taken from a retail 
    location that has blended gasoline within the past 30 days and is 
    in compliance with subparagraphs (A), (B), (C), and (D) of 
    paragraph (1) shall not be used in a VOC survey mandated by 40 CFR 
    Part 80.
        ``(4) State implementation plans.--A State shall be held 
    harmless and shall not be required to revise its State 
    implementation plan under section 110 to account for the emissions 
    from blended gasoline authorized under paragraph (1).
        ``(5) Preservation of state law.--Nothing in this subsection 
    shall--
            ``(A) preempt existing State laws or regulations regulating 
        the blending of compliant gasolines; or
            ``(B) prohibit a State from adopting such restrictions in 
        the future.
        ``(6) Regulations.--The Administrator shall promulgate, after 
    notice and comment, regulations implementing this subsection within 
    1 year after the date of enactment of this subsection.
        ``(7) Effective date.--This subsection shall become effective 
    15 months after the date of its enactment and shall apply to 
    blended batches of reformulated gasoline on or after that date, 
    regardless of whether the implementing regulations required by 
    paragraph (6) have been promulgated by the Administrator by that 
    date.
        ``(8) Liability.--No person other than the person responsible 
    for blending under this subsection shall be subject to an 
    enforcement action or penalties under subsection (d) solely arising 
    from the blending of compliant reformulated gasolines by the 
    retailers.
        ``(9) Formulation of gasoline.--This subsection does not grant 
    authority to the Administrator or any State (or any subdivision 
    thereof) to require reformulation of gasoline at the refinery to 
    adjust for potential or actual emissions increases due to the 
    blending authorized by this subsection.''.

SEC. 1514. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

    (a) In General.--Subject to the availability of appropriations 
under subsection (d), the Administrator of the Environmental Protection 
Agency shall, in consultation with the Secretary of Agriculture and the 
Biomass Research and Development Technical Advisory Committee 
established under section 306 of the Biomass Research and Development 
Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note), establish a 
program, to be known as the ``Advanced Biofuel Technologies Program'', 
to demonstrate advanced technologies for the production of alternative 
transportation fuels.
    (b) Priority.--In carrying out the program under subsection (a), 
the Administrator shall give priority to projects that enhance the 
geographical diversity of alternative fuels production and utilize 
feedstocks that represent 10 percent or less of ethanol or biodiesel 
fuel production in the United States during the previous fiscal year.
    (c) Demonstration Projects.--
        (1) In general.--As part of the program under subsection (a), 
    the Administrator shall fund demonstration projects--
            (A) to develop not less than 4 different conversion 
        technologies for producing cellulosic biomass ethanol; and
            (B) to develop not less than 5 technologies for coproducing 
        value-added bioproducts (such as fertilizers, herbicides, and 
        pesticides) resulting from the production of biodiesel fuel.
        (2) Administration.--Demonstration projects under this 
    subsection shall be--
            (A) conducted based on a merit-reviewed, competitive 
        process; and
            (B) subject to the cost-sharing requirements of section 
        988.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $110,000,000 for each of fiscal 
years 2005 through 2009.

SEC. 1515. WASTE-DERIVED ETHANOL AND BIODIESEL.

    Section 312(f)(1) of the Energy Policy Act of 1992 (42 U.S.C. 
13220(f)(1)) is amended--
        (1) by striking ```biodiesel' means'' and inserting the 
    following: ```biodiesel'--
            ``(A) means''; and
        (2) in subparagraph (A) (as designated by paragraph (1)) by 
    striking ``and'' at the end and inserting the following:
            ``(B) includes biodiesel derived from--
                ``(i) animal wastes, including poultry fats and poultry 
            wastes, and other waste materials; or
                ``(ii) municipal solid waste and sludges and oils 
            derived from wastewater and the treatment of wastewater; 
            and''.

SEC. 1516. SUGAR ETHANOL LOAN GUARANTEE PROGRAM.

    (a) In General.--Funds may be provided for the cost (as defined in 
section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
of loan guarantees issued under title XIV to carry out commercial 
demonstration projects for ethanol derived from sugarcane, bagasse, and 
other sugarcane byproducts.
    (b) Demonstration Projects.--The Secretary may issue loan 
guarantees under this section to projects to demonstrate commercially 
the feasibility and viability of producing ethanol using sugarcane, 
sugarcane bagasse, and other sugarcane byproducts as a feedstock.
    (c) Requirements.--An applicant for a loan guarantee under this 
section may provide assurances, satisfactory to the Secretary, that--
        (1) the project design has been validated through the operation 
    of a continuous process facility;
        (2) the project has been subject to a full technical review;
        (3) the project, with the loan guarantee, is economically 
    viable; and
        (4) there is a reasonable assurance of repayment of the 
    guaranteed loan.
    (d) Limitations.--
        (1) Maximum guarantee.--Except as provided in paragraph (2), a 
    loan guarantee under this section--
            (A) may be issued for up to 80 percent of the estimated 
        cost of a project; but
            (B) shall not exceed $50,000,000 for any 1 project.
        (2) Additional guarantees.--
            (A) In general.--The Secretary may issue additional loan 
        guarantees for a project to cover--
                (i) up to 80 percent of the excess of actual project 
            costs; but
                (ii) not to exceed 15 percent of the amount of the 
            original loan guarantee.
            (B) Principal and interest.--Subject to subparagraph (A), 
        the Secretary shall guarantee 100 percent of the principal and 
        interest of a loan guarantee made under subparagraph (A).

            Subtitle B--Underground Storage Tank Compliance

SEC. 1521. SHORT TITLE.

    This subtitle may be cited as the ``Underground Storage Tank 
Compliance Act''.

SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.

    (a) In General.--Section 9004 of the Solid Waste Disposal Act (42 
U.S.C. 6991c) is amended by adding at the end the following:
    ``(f) Trust Fund Distribution.--
        ``(1) In general.--
            ``(A) Amount and permitted uses of distribution.--The 
        Administrator shall distribute to States not less than 80 
        percent of the funds from the Trust Fund that are made 
        available to the Administrator under section 9014(2)(A) for 
        each fiscal year for use in paying the reasonable costs, 
        incurred under a cooperative agreement with any State for--
                ``(i) corrective actions taken by the State under 
            section 9003(h)(7)(A);
                ``(ii) necessary administrative expenses, as determined 
            by the Administrator, that are directly related to State 
            fund or State assurance programs under subsection (c)(1); 
            or
                ``(iii) enforcement, by a State or a local government, 
            of State or local regulations pertaining to underground 
            storage tanks regulated under this subtitle.
            ``(B) Use of funds for enforcement.--In addition to the 
        uses of funds authorized under subparagraph (A), the 
        Administrator may use funds from the Trust Fund that are not 
        distributed to States under subparagraph (A) for enforcement of 
        any regulation promulgated by the Administrator under this 
        subtitle.
            ``(C) Prohibited uses.--Funds provided to a State by the 
        Administrator under subparagraph (A) shall not be used by the 
        State to provide financial assistance to an owner or operator 
        to meet any requirement relating to underground storage tanks 
        under subparts B, C, D, H, and G of part 280 of title 40, Code 
        of Federal Regulations (as in effect on the date of enactment 
        of this subsection).
        ``(2) Allocation.--
            ``(A) Process.--Subject to subparagraphs (B) and (C), in 
        the case of a State with which the Administrator has entered 
        into a cooperative agreement under section 9003(h)(7)(A), the 
        Administrator shall distribute funds from the Trust Fund to the 
        State using an allocation process developed by the 
        Administrator.
            ``(B) Diversion of state funds.--The Administrator shall 
        not distribute funds under subparagraph (A)(iii) of subsection 
        (f)(1) to any State that has diverted funds from a State fund 
        or State assurance program for purposes other than those 
        related to the regulation of underground storage tanks covered 
        by this subtitle, with the exception of those transfers that 
        had been completed earlier than the date of enactment of this 
        subsection.
            ``(C) Revisions to process.--The Administrator may revise 
        the allocation process referred to in subparagraph (A) after--
                ``(i) consulting with State agencies responsible for 
            overseeing corrective action for releases from underground 
            storage tanks; and
                ``(ii) taking into consideration, at a minimum, each of 
            the following:

                    ``(I) The number of confirmed releases from 
                federally regulated leaking underground storage tanks 
                in the States.
                    ``(II) The number of federally regulated 
                underground storage tanks in the States.
                    ``(III) The performance of the States in 
                implementing and enforcing the program.
                    ``(IV) The financial needs of the States.
                    ``(V) The ability of the States to use the funds 
                referred to in subparagraph (A) in any year.

        ``(3) Distributions to state agencies.--Distributions from the 
    Trust Fund under this subsection shall be made directly to a State 
    agency that--
            ``(A) enters into a cooperative agreement referred to in 
        paragraph (2)(A); or
            ``(B) is enforcing a State program approved under this 
        section.''.
    (b) Withdrawal of Approval of State Funds.--Section 9004(c) of the 
Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is amended by inserting 
the following new paragraph at the end thereof:
        ``(6) Withdrawal of approval.--After an opportunity for good 
    faith, collaborative efforts to correct financial deficiencies with 
    a State fund, the Administrator may withdraw approval of any State 
    fund or State assurance program to be used as a financial 
    responsibility mechanism without withdrawing approval of a State 
    underground storage tank program under section 9004(a).''.
    (c) Ability to Pay.--Section 9003(h)(6) of the Solid Waste Disposal 
Act (42 U.S.C. 6591a(h)(6)) is amended by adding the following new 
subparagraph at the end thereof:
            ``(E) Inability or limited ability to pay.--
                ``(i) In general.--In determining the level of recovery 
            effort, or amount that should be recovered, the 
            Administrator (or the State pursuant to paragraph (7)) 
            shall consider the owner or operator's ability to pay. An 
            inability or limited ability to pay corrective action costs 
            must be demonstrated to the Administrator (or the State 
            pursuant to paragraph (7)) by the owner or operator.
                ``(ii) Considerations.--In determining whether or not a 
            demonstration is made under clause (i), the Administrator 
            (or the State pursuant to paragraph (7)) shall take into 
            consideration the ability of the owner or operator to pay 
            corrective action costs and still maintain its basic 
            business operations, including consideration of the overall 
            financial condition of the owner or operator and 
            demonstrable constraints on the ability of the owner or 
            operator to raise revenues.
                ``(iii) Information.--An owner or operator requesting 
            consideration under this subparagraph shall promptly 
            provide the Administrator (or the State pursuant to 
            paragraph (7)) with all relevant information needed to 
            determine the ability of the owner or operator to pay 
            corrective action costs.
                ``(iv) Alternative payment methods.--The Administrator 
            (or the State pursuant to paragraph (7)) shall consider 
            alternative payment methods as may be necessary or 
            appropriate if the Administrator (or the State pursuant to 
            paragraph (7)) determines that an owner or operator cannot 
            pay all or a portion of the costs in a lump sum payment.
                ``(v) Misrepresentation.--If an owner or operator 
            provides false information or otherwise misrepresents their 
            financial situation under clause (ii), the Administrator 
            (or the State pursuant to paragraph (7)) shall seek full 
            recovery of the costs of all such actions pursuant to the 
            provisions of subparagraph (A) without consideration of the 
            factors in subparagraph (B).''.

SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.

    (a) Inspection Requirements.--Section 9005 of the Solid Waste 
Disposal Act (42 U.S.C. 6991d) is amended by inserting the following 
new subsection at the end thereof:
    ``(c) Inspection Requirements.--
        ``(1) Uninspected tanks.--In the case of underground storage 
    tanks regulated under this subtitle that have not undergone an 
    inspection since December 22, 1998, not later than 2 years after 
    the date of enactment of this subsection, the Administrator or a 
    State that receives funding under this subtitle, as appropriate, 
    shall conduct on-site inspections of all such tanks to determine 
    compliance with this subtitle and the regulations under this 
    subtitle (40 CFR 280) or a requirement or standard of a State 
    program developed under section 9004.
        ``(2) Periodic inspections.--After completion of all 
    inspections required under paragraph (1), the Administrator or a 
    State that receives funding under this subtitle, as appropriate, 
    shall conduct on-site inspections of each underground storage tank 
    regulated under this subtitle at least once every 3 years to 
    determine compliance with this subtitle and the regulations under 
    this subtitle (40 CFR 280) or a requirement or standard of a State 
    program developed under section 9004. The Administrator may extend 
    for up to one additional year the first 3-year inspection interval 
    under this paragraph if the State demonstrates that it has 
    insufficient resources to complete all such inspections within the 
    first 3-year period.
        ``(3) Inspection authority.--Nothing in this section shall be 
    construed to diminish the Administrator's or a State's authorities 
    under section 9005(a).''.
    (b) Study of Alternative Inspection Programs.--The Administrator of 
the Environmental Protection Agency, in coordination with a State, 
shall gather information on compliance assurance programs that could 
serve as an alternative to the inspection programs under section 
9005(c) of the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and shall, 
within 4 years after the date of enactment of this Act, submit a report 
to the Congress containing the results of such study.

SEC. 1524. OPERATOR TRAINING.

    (a) In General.--Section 9010 of the Solid Waste Disposal Act (42 
U.S.C. 6991i) is amended to read as follows:

``SEC. 9010. OPERATOR TRAINING.

    ``(a) Guidelines.--
        ``(1) In general.--Not later than 2 years after the date of 
    enactment of the Underground Storage Tank Compliance Act, in 
    consultation and cooperation with States and after public notice 
    and opportunity for comment, the Administrator shall publish 
    guidelines that specify training requirements for--
            ``(A) persons having primary responsibility for on-site 
        operation and maintenance of underground storage tank systems;
            ``(B) persons having daily on-site responsibility for the 
        operation and maintenance of underground storage tanks systems; 
        and
            ``(C) daily, on-site employees having primary 
        responsibility for addressing emergencies presented by a spill 
        or release from an underground storage tank system.
        ``(2) Considerations.--The guidelines described in paragraph 
    (1) shall take into account--
            ``(A) State training programs in existence as of the date 
        of publication of the guidelines;
            ``(B) training programs that are being employed by tank 
        owners and tank operators as of the date of enactment of the 
        Underground Storage Tank Compliance Act;
            ``(C) the high turnover rate of tank operators and other 
        personnel;
            ``(D) the frequency of improvement in underground storage 
        tank equipment technology;
            ``(E) the nature of the businesses in which the tank 
        operators are engaged;
            ``(F) the substantial differences in the scope and length 
        of training needed for the different classes of persons 
        described in subparagraphs (A), (B), and (C) of paragraph (1); 
        and
            ``(G) such other factors as the Administrator determines to 
        be necessary to carry out this section.
    ``(b) State Programs.--
        ``(1) In general.--Not later than 2 years after the date on 
    which the Administrator publishes the guidelines under subsection 
    (a)(1), each State that receives funding under this subtitle shall 
    develop State-specific training requirements that are consistent 
    with the guidelines developed under subsection (a)(1).
        ``(2) Requirements.--State requirements described in paragraph 
    (1) shall--
            ``(A) be consistent with subsection (a);
            ``(B) be developed in cooperation with tank owners and tank 
        operators;
            ``(C) take into consideration training programs implemented 
        by tank owners and tank operators as of the date of enactment 
        of this section; and
            ``(D) be appropriately communicated to tank owners and 
        operators.
        ``(3) Financial incentive.--The Administrator may award to a 
    State that develops and implements requirements described in 
    paragraph (1), in addition to any funds that the State is entitled 
    to receive under this subtitle, not more than $200,000, to be used 
    to carry out the requirements.
    ``(c) Training.--All persons that are subject to the operator 
training requirements of subsection (a) shall--
        ``(1) meet the training requirements developed under subsection 
    (b); and
        ``(2) repeat the applicable requirements developed under 
    subsection (b), if the tank for which they have primary daily on-
    site management responsibilities is determined to be out of 
    compliance with--
            ``(A) a requirement or standard promulgated by the 
        Administrator under section 9003; or
            ``(B) a requirement or standard of a State program approved 
        under section 9004.''.
    (b) State Program Requirement.--Section 9004(a) of the Solid Waste 
Disposal Act (42 U.S.C. 6991c(a)) is amended by striking ``and'' at the 
end of paragraph (7), by striking the period at the end of paragraph 
(8) and inserting ``; and'', and by adding the following new paragraph 
at the end thereof:
        ``(9) State-specific training requirements as required by 
    section 9010.''.
    (c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C. 6991e) 
is amended as follows:
        (1) By striking ``or'' at the end of subparagraph (B).
        (2) By adding the following new subparagraph after subparagraph 
    (C):
        ``(D) the training requirements established by States pursuant 
    to section 9010 (relating to operator training); or''.
    (d) Table of Contents.--The item relating to section 9010 in the 
table of contents for the Solid Waste Disposal Act is amended to read 
as follows:

``Sec. 9010. Operator training.''.

SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.

    Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 
6991b(h)) is amended as follows:
        (1) In paragraph (7)(A)--
            (A) by striking ``paragraphs (1) and (2) of this 
        subsection'' and inserting ``paragraphs (1), (2), and (12)''; 
        and
            (B) by striking ``and including the authorities of 
        paragraphs (4), (6), and (8) of this subsection'' and inserting 
        ``and the authority under sections 9011 and 9012 and paragraphs 
        (4), (6), and (8),''.
        (2) By adding at the end the following:
        ``(12) Remediation of oxygenated fuel contamination.--
            ``(A) In general.--The Administrator and the States may use 
        funds made available under section 9014(2)(B) to carry out 
        corrective actions with respect to a release of a fuel 
        containing an oxygenated fuel additive that presents a threat 
        to human health or welfare or the environment.
            ``(B) Applicable authority.--The Administrator or a State 
        shall carry out subparagraph (A) in accordance with paragraph 
        (2), and in the case of a State, in accordance with a 
        cooperative agreement entered into by the Administrator and the 
        State under paragraph (7).''.

SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.

    (a) Release Prevention and Compliance.--Subtitle I of the Solid 
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by adding at the 
end the following:

``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9014(2)(D) from the Trust Fund 
may be used to conduct inspections, issue orders, or bring actions 
under this subtitle--
        ``(1) by a State, in accordance with a grant or cooperative 
    agreement with the Administrator, of State regulations pertaining 
    to underground storage tanks regulated under this subtitle; and
        ``(2) by the Administrator, for tanks regulated under this 
    subtitle (including under a State program approved under section 
    9004).''.
    (b) Government-Owned Tanks.--Section 9003 of the Solid Waste 
Disposal Act (42 U.S.C. 6991b) is amended by adding at the end the 
following:
    ``(i) Government-Owned Tanks.--
        ``(1) State compliance report.--(A) Not later than 2 years 
    after the date of enactment of this subsection, each State that 
    receives funding under this subtitle shall submit to the 
    Administrator a State compliance report that--
            ``(i) lists the location and owner of each underground 
        storage tank described in subparagraph (B) in the State that, 
        as of the date of submission of the report, is not in 
        compliance with section 9003; and
            ``(ii) specifies the date of the last inspection and 
        describes the actions that have been and will be taken to 
        ensure compliance of the underground storage tank listed under 
        clause (i) with this subtitle.
        ``(B) An underground storage tank described in this 
    subparagraph is an underground storage tank that is--
            ``(i) regulated under this subtitle; and
            ``(ii) owned or operated by the Federal, State, or local 
        government.
        ``(C) The Administrator shall make each report, received under 
    subparagraph (A), available to the public through an appropriate 
    media.
        ``(2) Financial incentive.--The Administrator may award to a 
    State that develops a report described in paragraph (1), in 
    addition to any other funds that the State is entitled to receive 
    under this subtitle, not more than $50,000, to be used to carry out 
    the report.
        ``(3) Not a safe harbor.--This subsection does not relieve any 
    person from any obligation or requirement under this subtitle.''.
    (c) Public Record.--Section 9002 of the Solid Waste Disposal Act 
(42 U.S.C. 6991a) is amended by adding at the end the following:
    ``(d) Public Record.--
        ``(1) In general.--The Administrator shall require each State 
    that receives Federal funds to carry out this subtitle to maintain, 
    update at least annually, and make available to the public, in such 
    manner and form as the Administrator shall prescribe (after 
    consultation with States), a record of underground storage tanks 
    regulated under this subtitle.
        ``(2) Considerations.--To the maximum extent practicable, the 
    public record of a State, respectively, shall include, for each 
    year--
            ``(A) the number, sources, and causes of underground 
        storage tank releases in the State;
            ``(B) the record of compliance by underground storage tanks 
        in the State with--
                ``(i) this subtitle; or
                ``(ii) an applicable State program approved under 
            section 9004; and
            ``(C) data on the number of underground storage tank 
        equipment failures in the State.''.
    (d) Incentive for Performance.--Section 9006 of the Solid Waste 
Disposal Act (42 U.S.C. 6991e) is amended by adding at the end the 
following:
    ``(e) Incentive for Performance.--Both of the following may be 
taken into account in determining the terms of a civil penalty under 
subsection (d):
        ``(1) The compliance history of an owner or operator in 
    accordance with this subtitle or a program approved under section 
    9004.
        ``(2) Any other factor the Administrator considers 
    appropriate.''.
    (e) Table of Contents.--The table of contents for such subtitle I 
is amended by adding the following new item at the end thereof:

``Sec. 9011. Use of funds for release prevention and compliance.''.

SEC. 1527. DELIVERY PROHIBITION.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act (42 
U.S.C. 6991 et seq.) is amended by adding at the end the following:

``SEC. 9012. DELIVERY PROHIBITION.

    ``(a) Requirements.--
        ``(1) Prohibition of delivery or deposit.--Beginning 2 years 
    after the date of enactment of this section, it shall be unlawful 
    to deliver to, deposit into, or accept a regulated substance into 
    an underground storage tank at a facility which has been identified 
    by the Administrator or a State implementing agency to be 
    ineligible for such delivery, deposit, or acceptance.
        ``(2) Guidance.--Within 1 year after the date of enactment of 
    this section, the Administrator shall, in consultation with the 
    States, underground storage tank owners, and product delivery 
    industries, publish guidelines detailing the specific processes and 
    procedures they will use to implement the provisions of this 
    section. The processes and procedures include, at a minimum--
            ``(A) the criteria for determining which underground 
        storage tank facilities are ineligible for delivery, deposit, 
        or acceptance of a regulated substance;
            ``(B) the mechanisms for identifying which facilities are 
        ineligible for delivery, deposit, or acceptance of a regulated 
        substance to the underground storage tank owning and fuel 
        delivery industries;
            ``(C) the process for reclassifying ineligible facilities 
        as eligible for delivery, deposit, or acceptance of a regulated 
        substance;
            ``(D) one or more processes for providing adequate notice 
        to underground storage tank owners and operators and supplier 
        industries that an underground storage tank has been determined 
        to be ineligible for delivery, deposit, or acceptance or a 
        regulated substance; and
            ``(E) a delineation of, or a process for determining, the 
        specified geographic areas subject to paragraph (4).
        ``(3) Compliance.--States that receive funding under this 
    subtitle shall, at a minimum, comply with the processes and 
    procedures published under paragraph (2).
        ``(4) Consideration.--
            ``(A) Rural and remote areas.--Subject to subparagraph (B), 
        the Administrator or a State may consider not treating an 
        underground storage tank as ineligible for delivery, deposit, 
        or acceptance of a regulated substance if such treatment would 
        jeopardize the availability of, or access to, fuel in any rural 
        and remote areas unless an urgent threat to public health, as 
        determined by the Administrator, exists.
            ``(B) Applicability.--Subparagraph (A) shall apply only 
        during the 180-day period following the date of a determination 
        by the Administrator or the appropriate State under 
        subparagraph (A).
    ``(b) Effect on State Authority.--Nothing in this section shall 
affect or preempt the authority of a State to prohibit the delivery, 
deposit, or acceptance of a regulated substance to an underground 
storage tank.
    ``(c) Defense to Violation.--A person shall not be in violation of 
subsection (a)(1) if the person has not been provided with notice 
pursuant to subsection (a)(2)(D) of the ineligibility of a facility for 
delivery, deposit, or acceptance of a regulated substance as determined 
by the Administrator or a State, as appropriate, under this section.''.
    (b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C. 
6991e(d)(2)) is amended as follows:
        (1) By adding the following new subparagraph after subparagraph 
    (D):
        ``(E) the delivery prohibition requirement established by 
    section 9012,''.
        (2) By adding the following new sentence at the end thereof: 
    ``Any person making or accepting a delivery or deposit of a 
    regulated substance to an underground storage tank at an ineligible 
    facility in violation of section 9012 shall also be subject to the 
    same civil penalty for each day of such violation.''.
    (c) Table of Contents.--The table of contents for such subtitle I 
is amended by adding the following new item at the end thereof:

``Sec. 9012. Delivery prohibition.''.

SEC. 1528. FEDERAL FACILITIES.

    Section 9007 of the Solid Waste Disposal Act (42 U.S.C. 6991f) is 
amended to read as follows:

``SEC. 9007. FEDERAL FACILITIES.

    ``(a) In General.--Each department, agency, and instrumentality of 
the executive, legislative, and judicial branches of the Federal 
Government (1) having jurisdiction over any underground storage tank or 
underground storage tank system, or (2) engaged in any activity 
resulting, or which may result, in the installation, operation, 
management, or closure of any underground storage tank, release 
response activities related thereto, or in the delivery, acceptance, or 
deposit of any regulated substance to an underground storage tank or 
underground storage tank system shall be subject to, and comply with, 
all Federal, State, interstate, and local requirements, both 
substantive and procedural (including any requirement for permits or 
reporting or any provisions for injunctive relief and such sanctions as 
may be imposed by a court to enforce such relief), respecting 
underground storage tanks in the same manner, and to the same extent, 
as any person is subject to such requirements, including the payment of 
reasonable service charges. The Federal, State, interstate, and local 
substantive and procedural requirements referred to in this subsection 
include, but are not limited to, all administrative orders and all 
civil and administrative penalties and fines, regardless of whether 
such penalties or fines are punitive or coercive in nature or are 
imposed for isolated, intermittent, or continuing violations. The 
United States hereby expressly waives any immunity otherwise applicable 
to the United States with respect to any such substantive or procedural 
requirement (including, but not limited to, any injunctive relief, 
administrative order or civil or administrative penalty or fine 
referred to in the preceding sentence, or reasonable service charge). 
The reasonable service charges referred to in this subsection include, 
but are not limited to, fees or charges assessed in connection with the 
processing and issuance of permits, renewal of permits, amendments to 
permits, review of plans, studies, and other documents, and inspection 
and monitoring of facilities, as well as any other nondiscriminatory 
charges that are assessed in connection with a Federal, State, 
interstate, or local underground storage tank regulatory program. 
Neither the United States, nor any agent, employee, or officer thereof, 
shall be immune or exempt from any process or sanction of any State or 
Federal Court with respect to the enforcement of any such injunctive 
relief. No agent, employee, or officer of the United States shall be 
personally liable for any civil penalty under any Federal, State, 
interstate, or local law concerning underground storage tanks with 
respect to any act or omission within the scope of the official duties 
of the agent, employee, or officer. An agent, employee, or officer of 
the United States shall be subject to any criminal sanction (including, 
but not limited to, any fine or imprisonment) under any Federal or 
State law concerning underground storage tanks, but no department, 
agency, or instrumentality of the executive, legislative, or judicial 
branch of the Federal Government shall be subject to any such sanction. 
The President may exempt any underground storage tank of any 
department, agency, or instrumentality in the executive branch from 
compliance with such a requirement if he determines it to be in the 
paramount interest of the United States to do so. No such exemption 
shall be granted due to lack of appropriation unless the President 
shall have specifically requested such appropriation as a part of the 
budgetary process and the Congress shall have failed to make available 
such requested appropriation. Any exemption shall be for a period not 
in excess of 1 year, but additional exemptions may be granted for 
periods not to exceed 1 year upon the President's making a new 
determination. The President shall report each January to the Congress 
all exemptions from the requirements of this section granted during the 
preceding calendar year, together with his reason for granting each 
such exemption.
    ``(b) Review of and Report on Federal Underground Storage Tanks.--
        ``(1) Review.--Not later than 12 months after the date of 
    enactment of the Underground Storage Tank Compliance Act, each 
    Federal agency that owns or operates one or more underground 
    storage tanks, or that manages land on which one or more 
    underground storage tanks are located, shall submit to the 
    Administrator, the Committee on Energy and Commerce of the United 
    States House of Representatives, and the Committee on the 
    Environment and Public Works of the Senate a compliance strategy 
    report that--
            ``(A) lists the location and owner of each underground 
        storage tank described in this paragraph;
            ``(B) lists all tanks that are not in compliance with this 
        subtitle that are owned or operated by the Federal agency;
            ``(C) specifies the date of the last inspection by a State 
        or Federal inspector of each underground storage tank owned or 
        operated by the agency;
            ``(D) lists each violation of this subtitle respecting any 
        underground storage tank owned or operated by the agency;
            ``(E) describes the operator training that has been 
        provided to the operator and other persons having primary daily 
        on-site management responsibility for the operation and 
        maintenance of underground storage tanks owned or operated by 
        the agency; and
            ``(F) describes the actions that have been and will be 
        taken to ensure compliance for each underground storage tank 
        identified under subparagraph (B).
        ``(2) Not a safe harbor.--This subsection does not relieve any 
    person from any obligation or requirement under this subtitle.''.

SEC. 1529. TANKS ON TRIBAL LANDS.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act (42 
U.S.C. 6991 et seq.) is amended by adding the following at the end 
thereof:

``SEC. 9013. TANKS ON TRIBAL LANDS.

    ``(a) Strategy.--The Administrator, in coordination with Indian 
tribes, shall, not later than 1 year after the date of enactment of 
this section, develop and implement a strategy--
        ``(1) giving priority to releases that present the greatest 
    threat to human health or the environment, to take necessary 
    corrective action in response to releases from leaking underground 
    storage tanks located wholly within the boundaries of--
            ``(A) an Indian reservation; or
            ``(B) any other area under the jurisdiction of an Indian 
        tribe; and
        ``(2) to implement and enforce requirements concerning 
    underground storage tanks located wholly within the boundaries of--
            ``(A) an Indian reservation; or
            ``(B) any other area under the jurisdiction of an Indian 
        tribe.
    ``(b) Report.--Not later than 2 years after the date of enactment 
of this section, the Administrator shall submit to Congress a report 
that summarizes the status of implementation and enforcement of this 
subtitle in areas located wholly within--
        ``(1) the boundaries of Indian reservations; and
        ``(2) any other areas under the jurisdiction of an Indian 
    tribe.
The Administrator shall make the report under this subsection available 
to the public.
    ``(c) Not a Safe Harbor.--This section does not relieve any person 
from any obligation or requirement under this subtitle.
    ``(d) State Authority.--Nothing in this section applies to any 
underground storage tank that is located in an area under the 
jurisdiction of a State, or that is subject to regulation by a State, 
as of the date of enactment of this section.''.
    (b) Table of Contents.--The table of contents for such subtitle I 
is amended by adding the following new item at the end thereof:

``Sec. 9013. Tanks on Tribal lands.''.

SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUNDWATER.

    (a) In General.--Section 9003 of the Solid Waste Disposal Act (42 
U.S.C. 6991b) is amended by adding the following new subsection at the 
end:
    ``(i) Additional Measures to Protect Groundwater From 
Contamination.--The Administrator shall require each State that 
receives funding under this subtitle to require one of the following:
        ``(1) Tank and piping secondary containment.--(A) Each new 
    underground storage tank, or piping connected to any such new tank, 
    installed after the effective date of this subsection, or any 
    existing underground storage tank, or existing piping connected to 
    such existing tank, that is replaced after the effective date of 
    this subsection, shall be secondarily contained and monitored for 
    leaks if the new or replaced underground storage tank or piping is 
    within 1,000 feet of any existing community water system or any 
    existing potable drinking water well.
        ``(B) In the case of a new underground storage tank system 
    consisting of one or more underground storage tanks and connected 
    by piping, subparagraph (A) shall apply to all underground storage 
    tanks and connected pipes comprising such system.
        ``(C) In the case of a replacement of an existing underground 
    storage tank or existing piping connected to the underground 
    storage tank, subparagraph (A) shall apply only to the specific 
    underground storage tank or piping being replaced, not to other 
    underground storage tanks and connected pipes comprising such 
    system.
        ``(D) Each installation of a new motor fuel dispenser system, 
    after the effective date of this subsection, shall include under-
    dispenser spill containment if the new dispenser is within 1,000 
    feet of any existing community water system or any existing potable 
    drinking water well.
        ``(E) This paragraph shall not apply to repairs to an 
    underground storage tank, piping, or dispenser that are meant to 
    restore a tank, pipe, or dispenser to operating condition.
        ``(F) As used in this subsection:
            ``(i) The term `secondarily contained' means a release 
        detection and prevention system that meets the requirements of 
        40 CFR 280.43(g), but shall not include under-dispenser spill 
        containment or control systems.
            ``(ii) The term `underground storage tank' has the meaning 
        given to it in section 9001, except that such term does not 
        include tank combinations or more than a single underground 
        pipe connected to a tank.
            ``(iii) The term `installation of a new motor fuel 
        dispenser system' means the installation of a new motor fuel 
        dispenser and the equipment necessary to connect the dispenser 
        to the underground storage tank system, but does not mean the 
        installation of a motor fuel dispenser installed separately 
        from the equipment need to connect the dispenser to the 
        underground storage tank system.
        ``(2) Evidence of financial responsibility and certification.--
            ``(A) Manufacturer and installer financial 
        responsibility.--A person that manufactures an underground 
        storage tank or piping for an underground storage tank system 
        or that installs an underground storage tank system is required 
        to maintain evidence of financial responsibility under section 
        9003(d) in order to provide for the costs of corrective actions 
        directly related to releases caused by improper manufacture or 
        installation unless the person can demonstrate themselves to be 
        already covered as an owner or operator of an underground 
        storage tank under section 9003.
            ``(B) Installer certification.--The Administrator and each 
        State that receives funding under this subtitle, as 
        appropriate, shall require that a person that installs an 
        underground storage tank system is--
                ``(i) certified or licensed by the tank and piping 
            manufacturer;
                ``(ii) certified or licensed by the Administrator or a 
            State, as appropriate;
                ``(iii) has their underground storage tank system 
            installation certified by a registered professional 
            engineer with education and experience in underground 
            storage tank system installation;
                ``(iv) has had their installation of the underground 
            storage tank inspected and approved by the Administrator or 
            the State, as appropriate;
                ``(v) compliant with a code of practice developed by a 
            nationally recognized association or independent testing 
            laboratory and in accordance with the manufacturer's 
            instructions; or
                ``(vi) compliant with another method that is determined 
            by the Administrator or a State, as appropriate, to be no 
            less protective of human health and the environment.
            ``(C) Savings clause.--Nothing in subparagraph (A) alters 
        or affects the liability of any owner or operator of an 
        underground storage tank.''.
    (b) Effective Date.--This subsection shall take effect 18 months 
after the date of enactment of this subsection.
    (c) Promulgation of Regulations or Guidelines.--The Administrator 
shall issue regulations or guidelines implementing the requirements of 
this subsection, including guidance to differentiate between the terms 
``repair'' and ``replace'' for the purposes of section 9003(i)(1) of 
the Solid Waste Disposal Act.
    (d) Penalties.--Section 9006(d)(2) of such Act (42 U.S.C. 
6991e(d)(2)) is amended as follows:
        (1) By striking ``or'' at the end of subparagraph (B).
        (2) By inserting ``; or'' at the end of subparagraph (C).
        (3) By adding the following new subparagraph after subparagraph 
    (C):
            ``(D) the requirements established in section 9003(i),''.

SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Subtitle I of the Solid Waste Disposal Act (42 
U.S.C. 6991 et seq.) is amended by adding at the end the following:

``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Administrator the 
following amounts:
        ``(1) To carry out subtitle I (except sections 9003(h), 
    9005(c), 9011, and 9012) $50,000,000 for each of fiscal years 2005 
    through 2009.
        ``(2) From the Trust Fund, notwithstanding section 9508(c)(1) 
    of the Internal Revenue Code of 1986--
            ``(A) to carry out section 9003(h) (except section 
        9003(h)(12)) $200,000,000 for each of fiscal years 2005 through 
        2009;
            ``(B) to carry out section 9003(h)(12), $200,000,000 for 
        each of fiscal years 2005 through 2009;
            ``(C) to carry out sections 9003(i), 9004(f), and 9005(c) 
        $100,000,000 for each of fiscal years 2005 through 2009; and
            ``(D) to carry out sections 9010, 9011, 9012, and 9013 
        $55,000,000 for each of fiscal years 2005 through 2009.''.
    (b) Table of Contents.--The table of contents for such subtitle I 
is amended by adding the following new item at the end thereof:

``Sec. 9014. Authorization of appropriations.''.

SEC. 1532. CONFORMING AMENDMENTS.

    (a) In General.--Section 9001 of the Solid Waste Disposal Act (42 
U.S.C. 6991) is amended as follows:
        (1) By striking ``For the purposes of this subtitle--'' and 
    inserting ``In this subtitle:''.
        (2) By redesignating paragraphs (1), (2), (3), (4), (5), (6), 
    (7), and (8) as paragraphs (10), (7), (4), (3), (8), (5), (2), and 
    (6), respectively.
        (3) By inserting before paragraph (2) (as redesignated by 
    paragraph (2) of this subsection) the following:
        ``(1) Indian tribe.--
            ``(A) In general.--The term `Indian tribe' means any Indian 
        tribe, band, nation, or other organized group or community that 
        is recognized as being eligible for special programs and 
        services provided by the United States to Indians because of 
        their status as Indians.
            ``(B) Inclusions.--The term `Indian tribe' includes an 
        Alaska Native village, as defined in or established under the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.); 
        and''.
        (4) By inserting after paragraph (8) (as redesignated by 
    paragraph (2) of this subsection) the following:
        ``(9) Trust fund.--The term `Trust Fund' means the Leaking 
    Underground Storage Tank Trust Fund established by section 9508 of 
    the Internal Revenue Code of 1986.''.
    (b) Conforming Amendments.--The Solid Waste Disposal Act (42 U.S.C. 
6901 and following) is amended as follows:
        (1) Section 9003(f) (42 U.S.C. 6991b(f)) is amended--
            (A) in paragraph (1), by striking ``9001(2)(B)'' and 
        inserting ``9001(7)(B)''; and
            (B) in paragraphs (2) and (3), by striking ``9001(2)(A)'' 
        each place it appears and inserting ``9001(7)(A)''.
        (2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended in 
    paragraphs (1), (2)(C), (7)(A), and (11) by striking ``Leaking 
    Underground Storage Tank Trust Fund'' each place it appears and 
    inserting ``Trust Fund''.
        (3) Section 9009 (42 U.S.C. 6991h) is amended--
            (A) in subsection (a), by striking ``9001(2)(B)'' and 
        inserting ``9001(7)(B)''; and
            (B) in subsection (d), by striking ``section 9001(1) (A) 
        and (B)'' and inserting ``subparagraphs (A) and (B) of section 
        9001(10)''.

SEC. 1533. TECHNICAL AMENDMENTS.

    The Solid Waste Disposal Act is amended as follows:
        (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is amended by 
    striking ``sustances'' and inserting ``substances''.
        (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended by 
    striking ``subsection (c) and (d) of this section'' and inserting 
    ``subsections (c) and (d)''.
        (3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by striking 
    ``in 9001(2) (A) or (B) or both'' and inserting ``in subparagraph 
    (A) or (B) of section 9001(7)''.
        (4) Section 9005 (42 U.S.C. 6991d) is amended--
            (A) in subsection (a), by striking ``study taking'' and 
        inserting ``study, taking'';
            (B) in subsection (b)(1), by striking ``relevent'' and 
        inserting ``relevant''; and
            (C) in subsection (b)(4), by striking ``Evironmental'' and 
        inserting ``Environmental''.

                       Subtitle C--Boutique Fuels

SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.

    (a) Temporary Waivers During Supply Emergencies.--Section 
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended 
by inserting ``(i)'' after ``(C)'' and by adding the following new 
clauses at the end thereof:
    ``(ii) The Administrator may temporarily waive a control or 
prohibition respecting the use of a fuel or fuel additive required or 
regulated by the Administrator pursuant to subsection (c), (h), (i), 
(k), or (m) of this section or prescribed in an applicable 
implementation plan under section 110 approved by the Administrator 
under clause (i) of this subparagraph if, after consultation with, and 
concurrence by, the Secretary of Energy, the Administrator determines 
that--
        ``(I) extreme and unusual fuel or fuel additive supply 
    circumstances exist in a State or region of the Nation which 
    prevent the distribution of an adequate supply of the fuel or fuel 
    additive to consumers;
        ``(II) such extreme and unusual fuel and fuel additive supply 
    circumstances are the result of a natural disaster, an Act of God, 
    a pipeline or refinery equipment failure, or another event that 
    could not reasonably have been foreseen or prevented and not the 
    lack of prudent planning on the part of the suppliers of the fuel 
    or fuel additive to such State or region; and
        ``(III) it is in the public interest to grant the waiver (for 
    example, when a waiver is necessary to meet projected temporary 
    shortfalls in the supply of the fuel or fuel additive in a State or 
    region of the Nation which cannot otherwise be compensated for).
    ``(iii) If the Administrator makes the determinations required 
under clause (ii), such a temporary extreme and unusual fuel and fuel 
additive supply circumstances waiver shall be permitted only if--
        ``(I) the waiver applies to the smallest geographic area 
    necessary to address the extreme and unusual fuel and fuel additive 
    supply circumstances;
        ``(II) the waiver is effective for a period of 20 calendar days 
    or, if the Administrator determines that a shorter waiver period is 
    adequate, for the shortest practicable time period necessary to 
    permit the correction of the extreme and unusual fuel and fuel 
    additive supply circumstances and to mitigate impact on air 
    quality;
        ``(III) the waiver permits a transitional period, the exact 
    duration of which shall be determined by the Administrator (but 
    which shall be for the shortest practicable period), after the 
    termination of the temporary waiver to permit wholesalers and 
    retailers to blend down their wholesale and retail inventory;
        ``(IV) the waiver applies to all persons in the motor fuel 
    distribution system; and
        ``(V) the Administrator has given public notice to all parties 
    in the motor fuel distribution system, and local and State 
    regulators, in the State or region to be covered by the waiver.
The term `motor fuel distribution system' as used in this clause shall 
be defined by the Administrator through rulemaking.
    ``(iv) Within 180 days of the date of enactment of this clause, the 
Administrator shall promulgate regulations to implement clauses (ii) 
and (iii).
    ``(v) Nothing in this subparagraph shall--
        ``(I) limit or otherwise affect the application of any other 
    waiver authority of the Administrator pursuant to this section or 
    pursuant to a regulation promulgated pursuant to this section; and
        ``(II) subject any State or person to an enforcement action, 
    penalties, or liability solely arising from actions taken pursuant 
    to the issuance of a waiver under this subparagraph.''.
    (b) Limit on Number of Boutique Fuels.--Section 211(c)(4)(C) of the 
Clean Air Act (42 U.S.C. 7545(c)(4)(C)), as amended by subsection (a), 
is further amended by adding at the end the following:
    ``(v)(I) The Administrator shall have no authority, when 
considering a State implementation plan or a State implementation plan 
revision, to approve under this paragraph any fuel included in such 
plan or revision if the effect of such approval increases the total 
number of fuels approved under this paragraph as of September 1, 2004, 
in all State implementation plans.
    ``(II) The Administrator, in consultation with the Secretary of 
Energy, shall determine the total number of fuels approved under this 
paragraph as of September 1, 2004, in all State implementation plans 
and shall publish a list of such fuels, including the States and 
Petroleum Administration for Defense District in which they are used, 
in the Federal Register for public review and comment no later than 90 
days after enactment.
    ``(III) The Administrator shall remove a fuel from the list 
published under subclause (II) if a fuel ceases to be included in a 
State implementation plan or if a fuel in a State implementation plan 
is identical to a Federal fuel formulation implemented by the 
Administrator, but the Administrator shall not reduce the total number 
of fuels authorized under the list published under subclause (II).
    ``(IV) Subclause (I) shall not limit the Administrator's authority 
to approve a control or prohibition respecting any new fuel under this 
paragraph in a State implementation plan or revision to a State 
implementation plan if such new fuel--
        ``(aa) completely replaces a fuel on the list published under 
    subclause (II); or
        ``(bb) does not increase the total number of fuels on the list 
    published under subclause (II) as of September 1, 2004.
In the event that the total number of fuels on the list published under 
subclause (II) at the time of the Administrator's consideration of a 
control or prohibition respecting a new fuel is lower than the total 
number of fuels on such list as of September 1, 2004, the Administrator 
may approve a control or prohibition respecting a new fuel under this 
subclause if the Administrator, after consultation with the Secretary 
of Energy, publishes in the Federal Register after notice and comment a 
finding that, in the Administrator's judgment, such control or 
prohibition respecting a new fuel will not cause fuel supply or 
distribution interruptions or have a significant adverse impact on fuel 
producibility in the affected area or contiguous areas.
    ``(V) The Administrator shall have no authority under this 
paragraph, when considering any particular State's implementation plan 
or a revision to that State's implementation plan, to approve any fuel 
unless that fuel was, as of the date of such consideration, approved in 
at least one State implementation plan in the applicable Petroleum 
Administration for Defense District. However, the Administrator may 
approve as part of a State implementation plan or State implementation 
plan revision a fuel with a summertime Reid Vapor Pressure of 7.0 psi. 
In no event shall such approval by the Administrator cause an increase 
in the total number of fuels on the list published under subclause 
(II).
    ``(VI) Nothing in this clause shall be construed to have any effect 
regarding any available authority of States to require the use of any 
fuel additive registered in accordance with subsection (b), including 
any fuel additive registered in accordance with subsection (b) after 
the enactment of this subclause.''.
    (c) Study and Report to Congress on Boutique Fuels.--
        (1) Joint study.--The Administrator of the Environmental 
    Protection Agency and the Secretary shall undertake a study of the 
    effects on air quality, on the number of fuel blends, on fuel 
    availability, on fuel fungibility, and on fuel costs of the State 
    plan provisions adopted pursuant to section 211(c)(4)(C) of the 
    Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
        (2) Focus of study.--The primary focus of the study required 
    under paragraph (1) shall be to determine how to develop a Federal 
    fuels system that maximizes motor fuel fungibility and supply, 
    addresses air quality requirements, and reduces motor fuel price 
    volatility including that which has resulted from the proliferation 
    of boutique fuels, and to recommend to Congress such legislative 
    changes as are necessary to implement such a system. The study 
    should include the impacts on overall energy supply, distribution, 
    and use as a result of the legislative changes recommended.
        (3) Conduct of study.--In carrying out their joint duties under 
    this section, the Administrator and the Secretary shall use sound 
    science and objective science practices, shall consider the best 
    available science, shall use data collected by accepted means and 
    shall consider and include a description of the weight of the 
    scientific evidence. The Administrator and the Secretary shall 
    coordinate the study required by this section with other studies 
    required by the Act.
        (4) Responsibility of administrator.--In carrying out the study 
    required by this section, the Administrator shall coordinate 
    obtaining comments from affected parties interested in the air 
    quality impact assessment portion of the study.
        (5) Responsibility of secretary.--In carrying out the study 
    required by this section, the Secretary shall coordinate obtaining 
    comments from affected parties interested in the fuel availability, 
    number of fuel blends, fuel fungibility, and fuel costs portion of 
    the study.
        (6) Report to congress.--The Administrator and the Secretary 
    jointly shall submit the results of the study required by this 
    section in a report to the Congress not later than 12 months after 
    the date of the enactment of this Act, together with any 
    recommended regulatory and legislative changes. Such report shall 
    be submitted to the Committee on Energy and Commerce of the United 
    States House of Representatives and the Committees on Energy and 
    Natural Resources and on Environment and Public Works of the 
    Senate.
        (7) Authorization of appropriations.--There is authorized to be 
    appropriated jointly to the Administrator and the Secretary 
    $500,000 for the completion of the study required under this 
    subsection.
    (d) Definitions.--In this section:
        (1) The term ``Administrator'' means the Administrator of the 
    Environmental Protection Agency.
        (2) The term ``fuel'' means gasoline, diesel fuel, and any 
    other liquid petroleum product commercially known as gasoline and 
    diesel fuel for use in highway and nonroad motor vehicles.
        (3) The term ``a control or prohibition respecting a new fuel'' 
    means a control or prohibition on the formulation, composition, or 
    emissions characteristics of a fuel that would require the increase 
    or decrease of a constituent in gasoline or diesel fuel.

                       TITLE XVI--CLIMATE CHANGE
       Subtitle A--National Climate Change Technology Deployment

SEC. 1601. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY STRATEGIES.

    Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381 et 
seq.) is amended by adding at the end the following:

``SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING STRATEGIES.

    ``(a) Definitions.--In this section:
        ``(1) Advisory committee.--The term `Advisory Committee' means 
    the Climate Change Technology Advisory Committee established under 
    subsection (f)(1).
        ``(2) Carbon sequestration.--The term `carbon sequestration' 
    means the capture of carbon dioxide through terrestrial, 
    geological, biological, or other means, which prevents the release 
    of carbon dioxide into the atmosphere.
        ``(3) Committee.--The term `Committee' means the Committee on 
    Climate Change Technology established under subsection (b)(1).
        ``(4) Developing country.--The term `developing country' has 
    the meaning given the term in section 1608(m).
        ``(5) Greenhouse gas.--The term `greenhouse gas' means--
            ``(A) carbon dioxide;
            ``(B) methane;
            ``(C) nitrous oxide;
            ``(D) hydrofluorocarbons;
            ``(E) perfluorocarbons; and
            ``(F) sulfur hexafluoride.
        ``(6) Greenhouse gas intensity.--The term `greenhouse gas 
    intensity' means the ratio of greenhouse gas emissions to economic 
    output.
        ``(7) National laboratory.--The term `National Laboratory' has 
    the meaning given the term in section 3(3) of the Energy Policy Act 
    of 2005.
    ``(b) Committee on Climate Change Technology.--
        ``(1) In general.--Not later than 180 days after the date of 
    enactment of this section, the President shall establish a 
    Committee on Climate Change Technology to--
            ``(A) integrate current Federal climate reports; and
            ``(B) coordinate Federal climate change technology 
        activities and programs carried out in furtherance of the 
        strategy developed under subsection (c)(1).
        ``(2) Membership.--The Committee shall be composed of at least 
    7 members, including--
            ``(A) the Secretary, who shall chair the Committee;
            ``(B) the Secretary of Commerce;
            ``(C) the Chairman of the Council on Environmental Quality;
            ``(D) the Secretary of Agriculture;
            ``(E) the Administrator of the Environmental Protection 
        Agency;
            ``(F) the Secretary of Transportation;
            ``(G) the Director of the Office of Science and Technology 
        Policy; and
            ``(H) other representatives as may be determined by the 
        President.
        ``(3) Staff.--The members of the Committee shall provide such 
    personnel as are necessary to enable the Committee to perform its 
    duties.
    ``(c) National Climate Change Technology Policy.--
        ``(1) In general.--Not later than 18 months after the date of 
    enactment of this section, the Committee shall, based on applicable 
    Federal climate reports, submit to the Secretary and the President 
    a national strategy to promote the deployment and commercialization 
    of greenhouse gas intensity reducing technologies and practices 
    developed through research and development programs conducted by 
    the National Laboratories, other Federal research facilities, 
    institutions of higher education, and the private sector.
        ``(2) Updates.--The Committee shall--
            ``(A) at the time of submission of the strategy to the 
        President under paragraph (1), also make the strategy available 
        to the public; and
            ``(B) update the strategy every 5 years, or more frequently 
        as the Committee determines to be necessary.
    ``(d) Climate Change Technology Program.--Not later than 180 days 
after the date on which the Committee is established under subsection 
(b)(1), the Secretary, in consultation with the Committee, shall 
establish within the Department of Energy the Climate Change Technology 
Program to--
        ``(1) assist the Committee in the interagency coordination of 
    climate change technology research, development, demonstration, and 
    deployment to reduce greenhouse gas intensity; and
        ``(2) carry out the programs authorized under this section.
    ``(e) Technology Inventory.--
        ``(1) In general.--The Secretary shall conduct and make public 
    an inventory and evaluation of greenhouse gas intensity reducing 
    technologies that have been developed, or are under development, by 
    the National Laboratories, other Federal research facilities, 
    institutions of higher education, and the private sector to 
    determine which technologies are suitable for commercialization and 
    deployment.
        ``(2) Report.--Not later than 180 days after the completion of 
    the inventory under paragraph (1), the Secretary shall submit to 
    Congress a report that includes the results of the completed 
    inventory and any recommendations of the Secretary.
        ``(3) Use.--The Secretary shall use the results of the 
    inventory as guidance in the commercialization and deployment of 
    greenhouse gas intensity reducing technologies.
        ``(4) Updated inventory.--The Secretary shall--
            ``(A) periodically update the inventory under paragraph 
        (1), including when determined necessary by the Committee; and
            ``(B) make the updated inventory available to the public.
    ``(f) Climate Change Technology Advisory Committee.--
        ``(1) In general.--The Secretary, in consultation with the 
    Committee, may establish under section 624 of the Department of 
    Energy Organization Act (42 U.S.C. 7234) a Climate Change 
    Technology Advisory Committee to identify statutory, regulatory, 
    economic, and other barriers to the commercialization and 
    deployment of greenhouse gas intensity reducing technologies and 
    practices in the United States.
        ``(2) Composition.--The Advisory Committee shall be composed of 
    the following members, to be appointed by the Secretary, in 
    consultation with the Committee:
            ``(A) 1 representative shall be appointed from each 
        National Laboratory.
            ``(B) 3 members shall be representatives of energy-
        producing trade organizations.
            ``(C) 3 members shall represent energy-intensive trade 
        organizations.
            ``(D) 3 members shall represent groups that represent end-
        use energy and other consumers.
            ``(E) 3 members shall be employees of the Federal 
        Government who are experts in energy technology, intellectual 
        property, and tax.
            ``(F) 3 members shall be representatives of institutions of 
        higher education with expertise in energy technology 
        development that are recommended by the National Academy of 
        Engineering.
        ``(3) Report.--Not later than 1 year after the date of 
    enactment of this section and annually thereafter, the Advisory 
    Committee shall submit to the Committee a report that describes--
            ``(A) the findings of the Advisory Committee; and
            ``(B) any recommendations of the Advisory Committee for the 
        removal or reduction of barriers to commercialization, 
        deployment, and increasing the use of greenhouse gas intensity 
        reducing technologies and practices.
    ``(g) Greenhouse Gas Intensity Reducing Technology Deployment.--
        ``(1) In general.--Based on the strategy developed under 
    subsection (c)(1), the technology inventory conducted under 
    subsection (e)(1), the greenhouse gas intensity reducing technology 
    study report submitted under subsection (e)(2), and reports under 
    subsection (f)(3), if any, the Committee shall develop 
    recommendations that would provide for the removal of domestic 
    barriers to the commercialization and deployment of greenhouse gas 
    intensity reducing technologies and practices.
        ``(2) Requirements.--In developing the recommendations under 
    paragraph (1), the Committee shall consider in the aggregate--
            ``(A) the cost-effectiveness of the technology;
            ``(B) fiscal and regulatory barriers;
            ``(C) statutory and other barriers; and
            ``(D) intellectual property issues.
        ``(3) Demonstration projects.--In developing recommendations 
    under paragraph (1), the Committee may identify the need for 
    climate change technology demonstration projects.
        ``(4) Report.--Not later than 18 months after the date of 
    enactment of this section, the Committee shall submit to the 
    President and Congress a report that--
            ``(A) identifies, based on the report submitted under 
        subsection (f)(3), any barriers to, and commercial risks 
        associated with, the deployment of greenhouse gas intensity 
        reducing technologies; and
            ``(B) includes a plan for carrying out demonstration 
        projects.
        ``(5) Updates.--The Committee shall--
            ``(A) at the time of submission of the report to Congress 
        under paragraph (4), also make the report available to the 
        public; and
            ``(B) update the report every 5 years, or more frequently 
        as the Committee determines to be necessary.
    ``(h) Procedures for Calculating, Monitoring, and Analyzing 
Greenhouse Gas Intensity.--The Secretary, in collaboration with the 
Committee and the National Institute of Standards and Technology, and 
after public notice and opportunity for comment, shall develop 
standards and best practices for calculating, monitoring, and analyzing 
greenhouse gas intensity.
    ``(i) Demonstration Projects.--
        ``(1) In general.--The Secretary shall, subject to the 
    availability of appropriations, support demonstration projects 
    that--
            ``(A) increase the reduction of the greenhouse gas 
        intensity to levels below that which would be achieved by 
        technologies being used in the United States as of the date of 
        enactment of this section;
            ``(B) maximize the potential return on Federal investment;
            ``(C) demonstrate distinct roles in public-private 
        partnerships;
            ``(D) produce a large-scale reduction of greenhouse gas 
        intensity if commercialization occurred; and
            ``(E) support a diversified portfolio to mitigate the 
        uncertainty associated with a single technology.
        ``(2) Cost sharing.--In supporting a demonstration project 
    under this subsection, the Secretary shall require cost-sharing in 
    accordance with section 988 of the Energy Policy Act of 2005.
        ``(3) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection.
    ``(j) Cooperative Research and Development Agreements.--In carrying 
out greenhouse gas intensity reduction research and technology 
deployment activities under this subtitle, the Secretary may enter into 
cooperative research and development agreements under section 12 of the 
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a).''.

    Subtitle B--Climate Change Technology Deployment in Developing 
                               Countries

SEC. 1611. CLIMATE CHANGE TECHNOLOGY DEPLOYMENT IN DEVELOPING 
              COUNTRIES.

    The Global Environmental Protection Assistance Act of 1989 (Public 
Law 101-240; 103 Stat. 2521) is amending by adding at the end the 
following:

        ``PART C--TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES

``SEC. 731. DEFINITIONS.

    ``In this part:
        ``(1) Carbon sequestration.--The term `carbon sequestration' 
    means the capture of carbon dioxide through terrestrial, 
    geological, biological, or other means, which prevents the release 
    of carbon dioxide into the atmosphere.
        ``(2) Greenhouse gas.--The term `greenhouse gas' means carbon 
    dioxide, methane, nitrous oxide, hydrofluorocarbons, 
    perfluorocarbons, and sulfur hexafluoride.
        ``(3) Greenhouse gas intensity.--The term `greenhouse gas 
    intensity' means the ratio of greenhouse gas emissions to economic 
    output.

``SEC. 732. REDUCTION OF GREENHOUSE GAS INTENSITY.

    ``(a) Lead Agency.--
        ``(1) In general.--The Department of State shall act as the 
    lead agency for integrating into United States foreign policy the 
    goal of reducing greenhouse gas intensity in developing countries.
        ``(2) Reports.--
            ``(A) Initial report.--Not later than 180 days after the 
        date of enactment of this part, the Secretary of State shall 
        submit to the appropriate authorizing and appropriating 
        committees of Congress an initial report, based on the most 
        recent information available to the Secretary from reliable 
        public sources, that identifies the 25 developing countries 
        that are the largest greenhouse gas emitters, including for 
        each country--
                ``(i) an estimate of the quantity and types of energy 
            used;
                ``(ii) an estimate of the greenhouse gas intensity of 
            the energy, manufacturing, agricultural, and transportation 
            sectors;
                ``(iii) a description the progress of any significant 
            projects undertaken to reduce greenhouse gas intensity;
                ``(iv) a description of the potential for undertaking 
            projects to reduce greenhouse gas intensity;
                ``(v) a description of any obstacles to the reduction 
            of greenhouse gas intensity; and
                ``(vi) a description of the best practices learned by 
            the Agency for International Development from conducting 
            previous pilot and demonstration projects to reduce 
            greenhouse gas intensity.
            ``(B) Update.--Not later than 18 months after the date on 
        which the initial report is submitted under subparagraph (A), 
        the Secretary shall submit to the appropriate authorizing and 
        appropriating committees of Congress, based on the best 
        information available to the Secretary, an update of the 
        information provided in the initial report.
            ``(C) Use.--
                ``(i) Initial report.--The Secretary of State shall use 
            the initial report submitted under subparagraph (A) to 
            establish baselines for the developing countries identified 
            in the report with respect to the information provided 
            under clauses (i) and (ii) of that subparagraph.
                ``(ii) Annual reports.--The Secretary of State shall 
            use the annual reports prepared under subparagraph (B) and 
            any other information available to the Secretary to track 
            the progress of the developing countries with respect to 
            reducing greenhouse gas intensity.
    ``(b) Projects.--The Secretary of State, in coordination with 
Administrator of the United States Agency for International 
Development, shall (directly or through agreements with the World Bank, 
the International Monetary Fund, the Overseas Private Investment 
Corporation, and other development institutions) provide assistance to 
developing countries specifically for projects to reduce greenhouse gas 
intensity, including projects to--
        ``(1) leverage, through bilateral agreements, funds for 
    reduction of greenhouse gas intensity;
        ``(2) increase private investment in projects and activities to 
    reduce greenhouse gas intensity; and
        ``(3) expedite the deployment of technology to reduce 
    greenhouse gas intensity.
    ``(c) Focus.--In providing assistance under subsection (b), the 
Secretary of State shall focus on--
        ``(1) promoting the rule of law, property rights, contract 
    protection, and economic freedom; and
        ``(2) increasing capacity, infrastructure, and training.
    ``(d) Priority.--In providing assistance under subsection (b), the 
Secretary of State shall give priority to projects in the 25 developing 
countries identified in the report submitted under subsection 
(a)(2)(A).

``SEC. 733. TECHNOLOGY INVENTORY FOR DEVELOPING COUNTRIES.

    ``(a) In General.--The Secretary of Energy, in coordination with 
the Secretary of State and the Secretary of Commerce, shall conduct an 
inventory of greenhouse gas intensity reducing technologies that are 
developed, or under development in the United States, to identify 
technologies that are suitable for transfer to, deployment in, and 
commercialization in the developing countries identified in the report 
submitted under section 732(a)(2)(A).
    ``(b) Report.--Not later than 180 days after the completion of the 
inventory under subsection (a), the Secretary of State and the 
Secretary of Energy shall jointly submit to Congress a report that--
        ``(1) includes the results of the completed inventory;
        ``(2) identifies obstacles to the transfer, deployment, and 
    commercialization of the inventoried technologies;
        ``(3) includes results from previous Federal reports related to 
    the inventoried technologies; and
        ``(4) includes an analysis of market forces related to the 
    inventoried technologies.

``SEC. 734. TRADE-RELATED BARRIERS TO EXPORT OF GREENHOUSE GAS 
              INTENSITY REDUCING TECHNOLOGIES.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this part, the United States Trade Representative shall 
(as appropriate and consistent with applicable bilateral, regional, and 
mutual trade agreements)--
        ``(1) identify trade-relations barriers maintained by foreign 
    countries to the export of greenhouse gas intensity reducing 
    technologies and practices from the United States to the developing 
    countries identified in the report submitted under section 
    732(a)(2)(A); and
        ``(2) negotiate with foreign countries for the removal of those 
    barriers.
    ``(b) Annual Report.--Not later than 1 year after the date on which 
a report is submitted under subsection (a)(1) and annually thereafter, 
the United States Trade Representative shall submit to Congress a 
report that describes any progress made with respect to removing the 
barriers identified by the United States Trade Representative under 
subsection (a)(1).

``SEC. 735. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY EXPORT 
              INITIATIVE.

    ``(a) In General.--There is established an interagency working 
group to carry out a Greenhouse Gas Intensity Reducing Technology 
Export Initiative to--
        ``(1) promote the export of greenhouse gas intensity reducing 
    technologies and practices from the United States;
        ``(2) identify developing countries that should be designated 
    as priority countries for the purpose of exporting greenhouse gas 
    intensity reducing technologies and practices, based on the report 
    submitted under section 732(a)(2)(A);
        ``(3) identify potential barriers to adoption of exported 
    greenhouse gas intensity reducing technologies and practices based 
    on the reports submitted under section 734; and
        ``(4) identify previous efforts to export energy technologies 
    to learn best practices.
    ``(b) Composition.--The working group shall be composed of--
        ``(1) the Secretary of State, who shall act as the head of the 
    working group;
        ``(2) the Administrator of the United States Agency for 
    International Development;
        ``(3) the United States Trade Representative;
        ``(4) a designee of the Secretary of Energy;
        ``(5) a designee of the Secretary of Commerce; and
        ``(6) a designee of the Administrator of the Environmental 
    Protection Agency.
    ``(c) Performance Reviews and Reports.--Not later than 180 days 
after the date of enactment of this part and each year thereafter, the 
interagency working group shall--
        ``(1) conduct a performance review of actions taken and results 
    achieved by the Federal Government (including each of the agencies 
    represented on the interagency working group) to promote the export 
    of greenhouse gas intensity reducing technologies and practices 
    from the United States; and
        ``(2) submit to the appropriate authorizing and appropriating 
    committees of Congress a report that describes the results of the 
    performance reviews and evaluates progress in promoting the export 
    of greenhouse gas intensity reducing technologies and practices 
    from the United States, including any recommendations for 
    increasing the export of the technologies and practices.

``SEC. 736. TECHNOLOGY DEMONSTRATION PROJECTS.

    ``(a) In General.--The Secretary of State, in coordination with the 
Secretary of Energy and the Administrator of the United States Agency 
for International Development, shall promote the adoption of 
technologies and practices that reduce greenhouse gas intensity in 
developing countries in accordance with this section.
    ``(b) Demonstration Projects.--
        ``(1) In general.--The Secretaries and the Administrator shall 
    plan, coordinate, and carry out, or provide assistance for the 
    planning, coordination, or carrying out of, demonstration projects 
    under this section in at least 10 eligible countries, as determined 
    by the Secretaries and the Administrator.
        ``(2) Eligibility.--A country shall be eligible for assistance 
    under this subsection if the Secretaries and the Administrator 
    determine that the country has demonstrated a commitment to--
            ``(A) just governance, including--
                ``(i) promoting the rule of law;
                ``(ii) respecting human and civil rights;
                ``(iii) protecting private property rights; and
                ``(iv) combating corruption; and
            ``(B) economic freedom, including economic policies that--
                ``(i) encourage citizens and firms to participate in 
            global trade and international capital markets;
                ``(ii) promote private sector growth and the 
            sustainable management of natural resources; and
                ``(iii) strengthen market forces in the economy.
        ``(3) Selection.--In determining which eligible countries to 
    provide assistance to under paragraph (1), the Secretaries and the 
    Administrator shall consider--
            ``(A) the opportunity to reduce greenhouse gas intensity in 
        the eligible country; and
            ``(B) the opportunity to generate economic growth in the 
        eligible country.
        ``(4) Types of projects.--Demonstration projects under this 
    section may include--
            ``(A) coal gasification, coal liquefaction, and clean coal 
        projects;
            ``(B) carbon sequestration projects;
            ``(C) cogeneration technology initiatives;
            ``(D) renewable projects; and
            ``(E) lower emission transportation.

``SEC. 737. FELLOWSHIP AND EXCHANGE PROGRAMS.

    ``The Secretary of State, in coordination with the Secretary of 
Energy, the Secretary of Commerce, and the Administrator of the 
Environmental Protection Agency, shall carry out fellowship and 
exchange programs under which officials from developing countries visit 
the United States to acquire expertise and knowledge of best practices 
to reduce greenhouse gas intensity in their countries.

``SEC. 738. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this part.

``SEC. 739. EFFECTIVE DATE.

    ``Except as otherwise provided in this part, this part takes effect 
on October 1, 2005.''.

           TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

SEC. 1701. DEFINITIONS.

    In this title:
        (1) Commercial technology.--
            (A) In general.--The term ``commercial technology'' means a 
        technology in general use in the commercial marketplace.
            (B) Inclusions.--The term ``commercial technology'' does 
        not include a technology solely by use of the technology in a 
        demonstration project funded by the Department.
        (2) Cost.--The term ``cost'' has the meaning given the term 
    ``cost of a loan guarantee'' within the meaning of section 
    502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
    661a(5)(C)).
        (3) Eligible project.--The term ``eligible project'' means a 
    project described in section 1703.
        (4) Guarantee.--
            (A) In general.--The term ``guarantee'' has the meaning 
        given the term ``loan guarantee'' in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a).
            (B) Inclusion.--The term ``guarantee'' includes a loan 
        guarantee commitment (as defined in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a)).
        (5) Obligation.--The term ``obligation'' means the loan or 
    other debt obligation that is guaranteed under this section.

SEC. 1702. TERMS AND CONDITIONS.

    (a) In General.--Except for division C of Public Law 108-324, the 
Secretary shall make guarantees under this or any other Act for 
projects on such terms and conditions as the Secretary determines, 
after consultation with the Secretary of the Treasury, only in 
accordance with this section.
    (b) Specific Appropriation or Contribution.--No guarantee shall be 
made unless--
        (1) an appropriation for the cost has been made; or
        (2) the Secretary has received from the borrower a payment in 
    full for the cost of the obligation and deposited the payment into 
    the Treasury.
    (c) Amount.--Unless otherwise provided by law, a guarantee by the 
Secretary shall not exceed an amount equal to 80 percent of the project 
cost of the facility that is the subject of the guarantee, as estimated 
at the time at which the guarantee is issued.
    (d) Repayment.--
        (1) In general.--No guarantee shall be made unless the 
    Secretary determines that there is reasonable prospect of repayment 
    of the principal and interest on the obligation by the borrower.
        (2) Amount.--No guarantee shall be made unless the Secretary 
    determines that the amount of the obligation (when combined with 
    amounts available to the borrower from other sources) will be 
    sufficient to carry out the project.
        (3) Subordination.--The obligation shall be subject to the 
    condition that the obligation is not subordinate to other 
    financing.
    (e) Interest Rate.--An obligation shall bear interest at a rate 
that does not exceed a level that the Secretary determines appropriate, 
taking into account the prevailing rate of interest in the private 
sector for similar loans and risks.
    (f) Term.--The term of an obligation shall require full repayment 
over a period not to exceed the lesser of--
        (1) 30 years; or
        (2) 90 percent of the projected useful life of the physical 
    asset to be financed by the obligation (as determined by the 
    Secretary).
    (g) Defaults.--
        (1) Payment by secretary.--
            (A) In general.--If a borrower defaults on the obligation 
        (as defined in regulations promulgated by the Secretary and 
        specified in the guarantee contract), the holder of the 
        guarantee shall have the right to demand payment of the unpaid 
        amount from the Secretary.
            (B) Payment required.--Within such period as may be 
        specified in the guarantee or related agreements, the Secretary 
        shall pay to the holder of the guarantee the unpaid interest 
        on, and unpaid principal of the obligation as to which the 
        borrower has defaulted, unless the Secretary finds that there 
        was no default by the borrower in the payment of interest or 
        principal or that the default has been remedied.
            (C) Forbearance.--Nothing in this subsection precludes any 
        forbearance by the holder of the obligation for the benefit of 
        the borrower which may be agreed upon by the parties to the 
        obligation and approved by the Secretary.
        (2) Subrogation.--
            (A) In general.--If the Secretary makes a payment under 
        paragraph (1), the Secretary shall be subrogated to the rights 
        of the recipient of the payment as specified in the guarantee 
        or related agreements including, where appropriate, the 
        authority (notwithstanding any other provision of law) to--
                (i) complete, maintain, operate, lease, or otherwise 
            dispose of any property acquired pursuant to such guarantee 
            or related agreements; or
                (ii) permit the borrower, pursuant to an agreement with 
            the Secretary, to continue to pursue the purposes of the 
            project if the Secretary determines this to be in the 
            public interest.
            (B) Superiority of rights.--The rights of the Secretary, 
        with respect to any property acquired pursuant to a guarantee 
        or related agreements, shall be superior to the rights of any 
        other person with respect to the property.
            (C) Terms and conditions.--A guarantee agreement shall 
        include such detailed terms and conditions as the Secretary 
        determines appropriate to--
                (i) protect the interests of the United States in the 
            case of default; and
                (ii) have available all the patents and technology 
            necessary for any person selected, including the Secretary, 
            to complete and operate the project.
        (3) Payment of principal and interest by secretary.--With 
    respect to any obligation guaranteed under this section, the 
    Secretary may enter into a contract to pay, and pay, holders of the 
    obligation, for and on behalf of the borrower, from funds 
    appropriated for that purpose, the principal and interest payments 
    which become due and payable on the unpaid balance of the 
    obligation if the Secretary finds that--
            (A)(i) the borrower is unable to meet the payments and is 
        not in default;
            (ii) it is in the public interest to permit the borrower to 
        continue to pursue the purposes of the project; and
            (iii) the probable net benefit to the Federal Government in 
        paying the principal and interest will be greater than that 
        which would result in the event of a default;
            (B) the amount of the payment that the Secretary is 
        authorized to pay shall be no greater than the amount of 
        principal and interest that the borrower is obligated to pay 
        under the agreement being guaranteed; and
            (C) the borrower agrees to reimburse the Secretary for the 
        payment (including interest) on terms and conditions that are 
        satisfactory to the Secretary.
        (4) Action by attorney general.--
            (A) Notification.--If the borrower defaults on an 
        obligation, the Secretary shall notify the Attorney General of 
        the default.
            (B) Recovery.--On notification, the Attorney General shall 
        take such action as is appropriate to recover the unpaid 
        principal and interest due from--
                (i) such assets of the defaulting borrower as are 
            associated with the obligation; or
                (ii) any other security pledged to secure the 
            obligation.
    (h) Fees.--
        (1) In general.--The Secretary shall charge and collect fees 
    for guarantees in amounts the Secretary determines are sufficient 
    to cover applicable administrative expenses.
        (2) Availability.--Fees collected under this subsection shall--
            (A) be deposited by the Secretary into the Treasury; and
            (B) remain available until expended, subject to such other 
        conditions as are contained in annual appropriations Acts.
    (i) Records; Audits.--
        (1) In general.--A recipient of a guarantee shall keep such 
    records and other pertinent documents as the Secretary shall 
    prescribe by regulation, including such records as the Secretary 
    may require to facilitate an effective audit.
        (2) Access.--The Secretary and the Comptroller General of the 
    United States, or their duly authorized representatives, shall have 
    access, for the purpose of audit, to the records and other 
    pertinent documents.
    (j) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees issued under this 
section with respect to principal and interest.

SEC. 1703. ELIGIBLE PROJECTS.

    (a) In General.--The Secretary may make guarantees under this 
section only for projects that--
        (1) avoid, reduce, or sequester air pollutants or anthropogenic 
    emissions of greenhouse gases; and
        (2) employ new or significantly improved technologies as 
    compared to commercial technologies in service in the United States 
    at the time the guarantee is issued.
    (b) Categories.--Projects from the following categories shall be 
eligible for a guarantee under this section:
        (1) Renewable energy systems.
        (2) Advanced fossil energy technology (including coal 
    gasification meeting the criteria in subsection (d)).
        (3) Hydrogen fuel cell technology for residential, industrial, 
    or transportation applications.
        (4) Advanced nuclear energy facilities.
        (5) Carbon capture and sequestration practices and 
    technologies, including agricultural and forestry practices that 
    store and sequester carbon.
        (6) Efficient electrical generation, transmission, and 
    distribution technologies.
        (7) Efficient end-use energy technologies.
        (8) Production facilities for fuel efficient vehicles, 
    including hybrid and advanced diesel vehicles.
        (9) Pollution control equipment.
        (10) Refineries, meaning facilities at which crude oil is 
    refined into gasoline.
    (c) Gasification Projects.--The Secretary may make guarantees for 
the following gasification projects:
        (1) Integrated gasification combined cycle projects.--
    Integrated gasification combined cycle plants meeting the emission 
    levels under subsection (d), including--
            (A) projects for the generation of electricity--
                (i) for which, during the term of the guarantee--

                    (I) coal, biomass, petroleum coke, or a combination 
                of coal, biomass, and petroleum coke will account for 
                at least 65 percent of annual heat input; and
                    (II) electricity will account for at least 65 
                percent of net useful annual energy output;

                (ii) that have a design that is determined by the 
            Secretary to be capable of accommodating the equipment 
            likely to be necessary to capture the carbon dioxide that 
            would otherwise be emitted in flue gas from the plant;
                (iii) that have an assured revenue stream that covers 
            project capital and operating costs (including servicing 
            all debt obligations covered by the guarantee) that is 
            approved by the Secretary and the relevant State public 
            utility commission; and
                (iv) on which construction commences not later than the 
            date that is 3 years after the date of the issuance of the 
            guarantee;
            (B) a project to produce energy from coal (of not more than 
        13,000 Btu/lb and mined in the western United States) using 
        appropriate advanced integrated gasification combined cycle 
        technology that minimizes and offers the potential to sequester 
        carbon dioxide emissions and that--
                (i) may include repowering of existing facilities;
                (ii) may be built in stages;
                (iii) shall have a combined output of at least 100 
            megawatts;
                (iv) shall be located in a western State at an altitude 
            greater than 4,000 feet; and
                (v) shall demonstrate the ability to use coal with an 
            energy content of not more than 9,000 Btu/lb;
            (C) a project located in a taconite-producing region of the 
        United States that is entitled under the law of the State in 
        which the plant is located to enter into a long-term contract 
        approved by a State public utility commission to sell at least 
        450 megawatts of output to a utility;
            (D) facilities that--
                (i) generate one or more hydrogen-rich and carbon 
            monoxide-rich product streams from the gasification of coal 
            or coal waste; and
                (ii) use those streams to facilitate the production of 
            ultra clean premium fuels through the Fischer-Tropsch 
            process; and
            (E) a project to produce energy and clean fuels, using 
        appropriate coal liquefaction technology, from Western 
        bituminous or subbituminous coal, that--
                (i) is owned by a State government; and
                (ii) may include tribal and private coal resources.
        (2) Industrial gasification projects.--Facilities that gasify 
    coal, biomass, or petroleum coke in any combination to produce 
    synthesis gas for use as a fuel or feedstock and for which 
    electricity accounts for less than 65 percent of the useful energy 
    output of the facility.
        (3) Petroleum coke gasification projects.--The Secretary is 
    encouraged to make loan guarantees under this title available for 
    petroleum coke gasification projects.
        (4) Liquefaction project.--Notwithstanding any other provision 
    of law, funds awarded under the clean coal power initiative under 
    subtitle A of title IV for coal-to-oil liquefaction projects may be 
    used to finance the cost of loan guarantees for projects awarded 
    such funds.
    (d) Emission Levels.--In addition to any other applicable Federal 
or State emission limitation requirements, a project shall attain at 
least--
        (1) total sulfur dioxide emissions in flue gas from the project 
    that do not exceed 0.05 lb/MMBtu;
        (2) a 90-percent removal rate (including any fuel pretreatment) 
    of mercury from the coal-derived gas, and any other fuel, combusted 
    by the project;
        (3) total nitrogen oxide emissions in the flue gas from the 
    project that do not exceed 0.08 lb/MMBtu; and
        (4) total particulate emissions in the flue gas from the 
    project that do not exceed 0.01 lb/MMBtu.
    (e) Qualification of Facilities Receiving Tax Credits.--A project 
that receives tax credits for clean coal technology shall not be 
disqualified from receiving a guarantee under this title.

SEC. 1704. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary to provide the cost of guarantees under this title.
    (b) Use of Other Appropriated Funds.--The Department may use 
amounts awarded under the clean coal power initiative under subtitle A 
of title IV to carry out the project described in section 
1703(c)(1)(C), on the request of the recipient of such award, for a 
loan guarantee, to the extent that the amounts have not yet been 
disbursed to, or have been repaid by, the recipient.

                          TITLE XVIII--STUDIES

SEC. 1801. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.

    (a) Definition.--For purposes of this section ``petroleum'' means 
crude oil, motor gasoline, jet fuel, distillates, and propane.
    (b) Study.--The Secretary shall conduct a study on petroleum and 
natural gas storage capacity and operational inventory levels, 
nationwide and by major geographical regions.
    (c) Contents.--The study shall address--
        (1) historical normal ranges for petroleum and natural gas 
    inventory levels;
        (2) historical and projected storage capacity trends;
        (3) estimated operation inventory levels below which outages, 
    delivery slowdown, rationing, interruptions in service, or other 
    indicators of shortage begin to appear;
        (4) explanations for inventory levels dropping below normal 
    ranges; and
        (5) the ability of industry to meet United States demand for 
    petroleum and natural gas without shortages or price spikes, when 
    inventory levels are below normal ranges.
    (d) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit a report to Congress 
on the results of the study, including findings and any recommendations 
for preventing future supply shortages.

SEC. 1802. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary shall contract with the National Academy of Sciences 
for a study, to be completed within 1 year after the date of enactment 
of this Act, to examine whether the goals of energy efficiency 
standards are best served by measurement of energy consumed, and 
efficiency improvements, at the actual site of energy consumption, or 
through the full fuel cycle, beginning at the source of energy 
production. The Secretary shall submit the report to Congress.

SEC. 1803. TELECOMMUTING STUDY.

    (a) Study Required.--The Secretary, in consultation with the 
Commission, the Director of the Office of Personnel Management, the 
Administrator of General Services, and the Administrator of NTIA, shall 
conduct a study of the energy conservation implications of the 
widespread adoption of telecommuting by Federal employees in the United 
States.
    (b) Required Subjects of Study.--The study required by subsection 
(a) shall analyze the following subjects in relation to the energy 
saving potential of telecommuting by Federal employees:
        (1) Reductions of energy use and energy costs in commuting and 
    regular office heating, cooling, and other operations.
        (2) Other energy reductions accomplished by telecommuting.
        (3) Existing regulatory barriers that hamper telecommuting, 
    including barriers to broadband telecommunications services 
    deployment.
        (4) Collateral benefits to the environment, family life, and 
    other values.
    (c) Report Required.--The Secretary shall submit to the President 
and Congress a report on the study required by this section not later 
than 6 months after the date of enactment of this Act. Such report 
shall include a description of the results of the analysis of each of 
the subjects described in subsection (b).
    (d) Definitions.--As used in this section:
        (1) Commission.--The term ``Commission'' means the Federal 
    Communications Commission.
        (2) NTIA.--The term ``NTIA'' means the National 
    Telecommunications and Information Administration of the Department 
    of Commerce.
        (3) Telecommuting.--The term ``telecommuting'' means the 
    performance of work functions using communications technologies, 
    thereby eliminating or substantially reducing the need to commute 
    to and from traditional worksites.
        (4) Federal employee.--The term ``Federal employee'' has the 
    meaning provided the term ``employee'' by section 2105 of title 5, 
    United States Code.

SEC. 1804. LIHEAP REPORT.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Health and Human Services shall transmit to Congress a 
report on how the Low-Income Home Energy Assistance Program could be 
used more effectively to prevent loss of life from extreme 
temperatures. In preparing such report, the Secretary shall consult 
with appropriate officials in all 50 States and the District of 
Columbia.

SEC. 1805. OIL BYPASS FILTRATION TECHNOLOGY.

    The Secretary and the Administrator of the Environmental Protection 
Agency shall--
        (1) conduct a joint study of the benefits of oil bypass 
    filtration technology in reducing demand for oil and protecting the 
    environment;
        (2) examine the feasibility of using oil bypass filtration 
    technology in Federal motor vehicle fleets; and
        (3) include in such study, prior to any determination of the 
    feasibility of using oil bypass filtration technology, the 
    evaluation of products and various manufacturers.

SEC. 1806. TOTAL INTEGRATED THERMAL SYSTEMS.

    The Secretary shall--
        (1) conduct a study of the benefits of total integrated thermal 
    systems in reducing demand for oil and protecting the environment; 
    and
        (2) examine the feasibility of using total integrated thermal 
    systems in Department of Defense and other Federal motor vehicle 
    fleets.

SEC. 1807. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.

    The Secretary shall submit an annual report to the Committee on 
Energy and Commerce of the United States House of Representatives and 
to the Committee on Energy and Natural Resources of the Senate 
concerning the status of energy export development in Latin America and 
efforts by the Secretary and other departments and agencies of the 
United States to promote energy integration with Latin America. The 
report shall contain a detailed analysis of the status of energy export 
development in Mexico and a description of all significant efforts by 
the Secretary and other departments and agencies to promote a 
constructive relationship with Mexico regarding the development of that 
nation's energy capacity. In particular this report shall outline 
efforts the Secretary and other departments and agencies have made to 
ensure that regulatory approval and oversight of United States/Mexico 
border projects that result in the expansion of Mexican energy capacity 
are effectively coordinated across departments and with the Mexican 
government.

SEC. 1808. LOW-VOLUME GAS RESERVOIR STUDY.

    (a) Study.--The Secretary shall make a grant to an organization of 
oil and gas producing States, specifically those containing significant 
numbers of marginal oil and natural gas wells, for conducting an annual 
study of low-volume natural gas reservoirs. Such organization shall 
work with the State geologist of each State being studied.
    (b) Contents.--The studies under this section shall--
        (1) determine the status and location of marginal wells and gas 
    reservoirs;
        (2) gather the production information of these marginal wells 
    and reservoirs;
        (3) estimate the remaining producible reserves based on 
    variable pipeline pressures;
        (4) locate low-pressure gathering facilities and pipelines;
        (5) recommend incentives which will enable the continued 
    production of these resources;
        (6) produce maps and literature to disseminate to States to 
    promote conservation of natural gas reserves; and
        (7) evaluate the amount of natural gas that is being wasted 
    through the practice of venting or flaring of natural gas produced 
    in association with crude oil well production.
    (c) Data Analysis.--Data development and analysis under this 
section shall be performed by an institution of higher education with 
GIS capabilities. If the organization receiving the grant under 
subsection (a) does not have GIS capabilities, such organization shall 
contract with one or more entities with--
        (1) technological capabilities and resources to perform 
    advanced image processing, GIS programming, and data analysis; and
        (2) the ability to--
            (A) process remotely sensed imagery with high spatial 
        resolution;
            (B) deploy global positioning systems;
            (C) process and synthesize existing, variable-format gas 
        well, pipeline, gathering facility, and reservoir data;
            (D) create and query GIS databases with infrastructure 
        location and attribute information;
            (E) write computer programs to customize relevant GIS 
        software;
            (F) generate maps, charts, and graphs which summarize 
        findings from data research for presentation to different 
        audiences; and
            (G) deliver data in a variety of formats, including 
        Internet Map Server for query and display, desktop computer 
        display, and access through handheld personal digital 
        assistants.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section--
        (1) $1,500,000 for fiscal year 2006; and
        (2) $450,000 for each of the fiscal years 2007 through 2010.
    (e) Definitions.--For purposes of this section, the term ``GIS'' 
means geographic information systems technology that facilitates the 
organization and management of data with a geographic component.

SEC. 1809. INVESTIGATION OF GASOLINE PRICES.

    (a) Investigation.--Not later than 90 days after the date of 
enactment of this Act, the Federal Trade Commission shall conduct an 
investigation to determine if the price of gasoline is being 
artificially manipulated by reducing refinery capacity or by any other 
form of market manipulation or price gouging practices.
    (b) Evaluation and Analysis.--The Secretary shall direct the 
National Petroleum Council to conduct an evaluation and analysis to 
determine whether, and to what extent, environmental and other 
regulations affect new domestic refinery construction and significant 
expansion of existing refinery capacity.
    (c) Reports to Congress.--
        (1) Investigation.--On completion of the investigation under 
    subsection (a), the Federal Trade Commission shall submit to 
    Congress a report that describes--
            (A) the results of the investigation; and
            (B) any recommendations of the Federal Trade Commission.
        (2) Evaluation and analysis.--On completion of the evaluation 
    and analysis under subsection (b), the Secretary shall submit to 
    Congress a report that describes--
            (A) the results of the evaluation and analysis; and
            (B) any recommendations of the National Petroleum Council.

SEC. 1810. ALASKA NATURAL GAS PIPELINE.

    Not later than 180 days after the date of enactment of this Act, 
and every 180 days thereafter until the Alaska natural gas pipeline 
commences operation, the Federal Energy Regulatory Commission shall 
submit to Congress a report describing--
        (1) the progress made in licensing and constructing the 
    pipeline; and
        (2) any issue impeding that progress.

SEC. 1811. COAL BED METHANE STUDY.

    (a) Study.--
        (1) In general.--The Secretary of the Interior, in consultation 
    with the Administrator of the Environmental Protection Agency, 
    shall enter into an arrangement under which the National Academy of 
    Sciences shall conduct a study on the effect of coal bed natural 
    gas production on surface and ground water resources, including 
    ground water aquifiers, in the States of Montana, Wyoming, 
    Colorado, New Mexico, North Dakota, and Utah.
        (2) Matters to be addressed.--The study shall address the 
    effectiveness of--
            (A) the management of coal bed methane produced water;
            (B) the use of best management practices; and
            (C) various production techniques for coal bed methane 
        natural gas in minimizing impacts on water resources.
    (b) Data Analysis.--The study shall analyze available hydrologic, 
geologic and water quality data, along with--
        (1) production techniques, produced water management 
    techniques, best management practices, and other factors that can 
    mitigate effects of coal bed methane development;
        (2) the costs associated with mitigation techniques;
        (3) effects on surface or ground water resources, including 
    drinking water, associated with surface or subsurface disposal of 
    waters produced during extraction of coal bed methane; and
        (4) any other significant effects on surface or ground water 
    resources associated with production of coal bed methane.
    (c) Recommendations.--The study shall analyze the effectiveness of 
current mitigation practices of coal bed methane produced water 
handling in relation to existing Federal and State laws and 
regulations, and make recommendations as to changes, if any, to Federal 
law necessary to address adverse impacts to surface or ground water 
resources associated with coal bed methane development.
    (d) Completion of Study.--The National Academy of Sciences shall 
submit the findings and recommendations of the study to the Secretary 
of the Interior and the Administrator of the Environmental Protection 
Agency within 12 months after the date of enactment of this Act, and 
shall upon completion make the results of the study available to the 
public.
    (e) Report to Congress.--The Secretary of the Interior and the 
Administrator of the Environmental Protection Agency, after consulting 
with States, shall report to the Congress within 6 months after 
receiving the results of the study on--
        (1) the findings and recommendations of the study;
        (2) the agreement or disagreement of the Secretary of the 
    Interior and the Administrator of the Environmental Protection 
    Agency with each of its findings and recommendations; and
        (3) any recommended changes in funding to address the effects 
    of coal bed methane production on surface and ground water 
    resources.

SEC. 1812. BACKUP FUEL CAPABILITY STUDY.

    (a) Study.--
        (1) In general.--The Secretary shall conduct a study of the 
    effect of obtaining and maintaining liquid and other fuel backup 
    capability at--
            (A) gas-fired power generation facilities; and
            (B) other gas-fired industrial facilities.
        (2) Contents.--The study under paragraph (1) shall address--
            (A) the costs and benefits of adding a different fuel 
        capability to a power gas-fired power generating or industrial 
        facility, taking into consideration regional differences;
            (B) methods of the Federal Government and State governments 
        to encourage gas-fired power generators and industries to 
        develop the capability to power the facilities using a backup 
        fuel;
            (C) the effect on the supply and cost of natural gas of--
                (i) a balanced portfolio of fuel choices in power 
            generation and industrial applications; and
                (ii) State regulations that permit agencies in the 
            State to carry out policies that encourage the use of other 
            backup fuels in gas-fired power generation; and
            (D) changes required in the Clean Air Act (42 U.S.C. 7401 
        et seq.) to allow natural gas generators to add clean backup 
        fuel capabilities.
    (b) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
on the results of the study under subsection (a), including 
recommendations regarding future activity of the Federal Government 
relating to backup fuel capability.

SEC. 1813. INDIAN LAND RIGHTS-OF-WAY.

    (a) Study.--
        (1) In general.--The Secretary and the Secretary of the 
    Interior (referred to in this section as the ``Secretaries'') shall 
    jointly conduct a study of issues regarding energy rights-of-way on 
    tribal land (as defined in section 2601 of the Energy Policy Act of 
    1992 (as amended by section 503)) (referred to in this section as 
    ``tribal land'').
        (2) Consultation.--In conducting the study under paragraph (1), 
    the Secretaries shall consult with Indian tribes, the energy 
    industry, appropriate governmental entities, and affected 
    businesses and consumers.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretaries shall submit to Congress a report on the 
findings of the study, including--
        (1) an analysis of historic rates of compensation paid for 
    energy rights-of-way on tribal land;
        (2) recommendations for appropriate standards and procedures 
    for determining fair and appropriate compensation to Indian tribes 
    for grants, expansions, and renewals of energy rights-of-way on 
    tribal land;
        (3) an assessment of the tribal self-determination and 
    sovereignty interests implicated by applications for the grant, 
    expansion, or renewal of energy rights-of-way on tribal land; and
        (4) an analysis of relevant national energy transportation 
    policies relating to grants, expansions, and renewals of energy 
    rights-of-way on tribal land.

SEC. 1814. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit to Congress a report that--
        (1) identifies any policies or procedures of a contractor 
    operating a National Laboratory or single-purpose research facility 
    that create disincentives to the temporary or permanent transfer of 
    scientific and technical personnel among the contractor-operated 
    National Laboratories or contractor-operated single-purpose 
    research facilities; and
        (2) provides recommendations for improving interlaboratory 
    exchange of scientific and technical personnel.

SEC. 1815. INTERAGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND 
              RETAIL MARKETS FOR ELECTRIC ENERGY.

    (a) Task Force.--There is established an inter-agency task force, 
to be known as the ``Electric Energy Market Competition Task Force'' 
(referred to in this section as the ``task force''), consisting of five 
members--
        (1) one of whom shall be an employee of the Department of 
    Justice, to be appointed by the Attorney General of the United 
    States;
        (2) one of whom shall be an employee of the Federal Energy 
    Regulatory Commission, to be appointed by the Chairperson of that 
    Commission;
        (3) one of whom shall be an employee of the Federal Trade 
    Commission, to be appointed by the Chairperson of that Commission;
        (4) one of whom shall be an employee of the Department, to be 
    appointed by the Secretary; and
        (5) one of whom shall be an employee of the Rural Utilities 
    Service, to be appointed by the Secretary of Agriculture.
    (b) Study and Report.--
        (1) Study.--The task force shall conduct a study and analysis 
    of competition within the wholesale and retail market for electric 
    energy in the United States.
        (2) Report.--
            (A) Final report.--Not later than 1 year after the date of 
        enactment of this Act, the task force shall submit to Congress 
        a final report on the findings of the task force under 
        paragraph (1).
            (B) Public comment.--Not later than the date that is 60 
        days before a final report is submitted to Congress under 
        subparagraph (A), the task force shall--
                (i) publish in the Federal Register a draft of the 
            report; and
                (ii) provide an opportunity for public comment on the 
            report.
    (c) Consultation.--In conducting the study under subsection (b), 
the task force shall consult with and solicit comments from any 
advisory entity of the task force, the States, representatives of the 
electric power industry, and the public.

SEC. 1816. STUDY OF RAPID ELECTRICAL GRID RESTORATION.

    (a) Study.--
        (1) In general.--The Secretary shall conduct a study of the 
    benefits of using mobile transformers and mobile substations to 
    rapidly restore electrical service to areas subjected to blackouts 
    as a result of--
            (A) equipment failure;
            (B) natural disasters;
            (C) acts of terrorism; or
            (D) war.
        (2) Contents.--The study under paragraph (1) shall contain an 
    analysis of--
            (A) the feasibility of using mobile transformers and mobile 
        substations to reduce dependence on foreign entities for key 
        elements of the electrical grid system of the United States;
            (B) the feasibility of using mobile transformers and mobile 
        substations to rapidly restore electrical power to--
                (i) military bases;
                (ii) the Federal Government;
                (iii) communications industries;
                (iv) first responders; and
                (v) other critical infrastructures, as determined by 
            the Secretary;
            (C) the quantity of mobile transformers and mobile 
        substations necessary--
                (i) to eliminate dependence on foreign sources for key 
            electrical grid components in the United States;
                (ii) to rapidly deploy technology to fully restore full 
            electrical service to prioritized Governmental functions; 
            and
                (iii) to identify manufacturing sources in existence on 
            the date of enactment of this Act that have previously 
            manufactured specialized mobile transformer or mobile 
            substation products for Federal agencies.
    (b) Report.--
        (1) In general.--Not later than 1 year after the date of 
    enactment of this Act, the Secretary shall submit to the President 
    and Congress a report on the study under subsection (a).
        (2) Inclusion.--The report shall include a description of the 
    results of the analysis under subsection (a)(2).

SEC. 1817. STUDY OF DISTRIBUTED GENERATION.

    (a) Study.--
        (1) In general.--
            (A) Potential benefits.--The Secretary, in consultation 
        with the Federal Energy Regulatory Commission, shall conduct a 
        study of the potential benefits of cogeneration and small power 
        production.
            (B) Recipients.--The benefits described in subparagraph (A) 
        include benefits that are received directly or indirectly by--
                (i) an electricity distribution or transmission service 
            provider;
                (ii) other customers served by an electricity 
            distribution or transmission service provider; and
                (iii) the general public in the area served by the 
            public utility in which the cogenerator or small power 
            producer is located.
        (2) Inclusions.--The study shall include an analysis of--
            (A) the potential benefits of--
                (i) increased system reliability;
                (ii) improved power quality;
                (iii) the provision of ancillary services;
                (iv) reduction of peak power requirements through 
            onsite generation;
                (v) the provision of reactive power or volt-ampere 
            reactives;
                (vi) an emergency supply of power;
                (vii) offsets to investments in generation, 
            transmission, or distribution facilities that would 
            otherwise be recovered through rates;
                (viii) diminished land use effects and right-of-way 
            acquisition costs; and
                (ix) reducing the vulnerability of a system to 
            terrorism; and
            (B) any rate-related issue that may impede or otherwise 
        discourage the expansion of cogeneration and small power 
        production facilities, including a review of whether rates, 
        rules, or other requirements imposed on the facilities are 
        comparable to rates imposed on customers of the same class that 
        do not have cogeneration or small power production.
        (3) Valuation of benefits.--In carrying out the study, the 
    Secretary shall determine an appropriate method of valuing 
    potential benefits under varying circumstances for individual 
    cogeneration or small power production units.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary shall--
        (1) complete the study;
        (2) provide an opportunity for public comment on the results of 
    the study; and
        (3) submit to the President and Congress a report describing--
            (A) the results of the study; and
            (B) information relating to the public comments received 
        under paragraph (2).
    (c) Publication.--After submission of the report under subsection 
(b) to the President and Congress, the Secretary shall publish the 
report.

SEC. 1818. NATURAL GAS SUPPLY SHORTAGE REPORT.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
on natural gas supplies and demand.
    (b) Purpose.--The purpose of the report under subsection (a) is to 
develop recommendations for achieving a balance between natural gas 
supply and demand in order to--
        (1) provide residential consumers with natural gas at 
    reasonable and stable prices;
        (2) accommodate long-term maintenance and growth of domestic 
    natural gas-dependent industrial, manufacturing, and commercial 
    enterprises;
        (3) facilitate the attainment of national ambient air quality 
    standards under the Clean Air Act (43 U.S.C. 7401 et seq.);
        (4) achieve continued progress in reducing the emissions 
    associated with electric power generation; and
        (5) support the development of the preliminary phases of 
    hydrogen-based energy technologies.
    (c) Comprehensive Analysis.--The report shall include a 
comprehensive analysis of, for the period beginning on January 1, 2004, 
and ending on December 31, 2015, natural gas supply and demand in the 
United States, including--
        (1) estimates of annual domestic demand for natural gas, taking 
    into consideration the effect of Federal policies and actions that 
    are likely to increase or decrease the demand for natural gas;
        (2) projections of annual natural gas supplies, from domestic 
    and foreign sources, under Federal policies in existence on the 
    date of enactment of this Act;
        (3) an identification of estimated natural gas supplies that 
    are not available under those Federal policies;
        (4) scenarios for decreasing natural gas demand and increasing 
    natural gas supplies that compare the relative economic and 
    environmental impacts of Federal policies that--
            (A) encourage or require the use of natural gas to meet air 
        quality, carbon dioxide emission reduction, or energy security 
        goals;
            (B) encourage or require the use of energy sources other 
        than natural gas, including coal, nuclear, and renewable 
        sources;
            (C) support technologies to develop alternative sources of 
        natural gas and synthetic gas, including coal gasification 
        technologies;
            (D) encourage or require the use of energy conservation and 
        demand side management practices; and
            (E) affect access to domestic natural gas supplies; and
        (5) recommendations for Federal actions to achieve the purposes 
    described in subsection (b), including recommendations that--
            (A) encourage or require the use of energy sources other 
        than natural gas, including coal, nuclear, and renewable 
        sources;
            (B) encourage or require the use of energy conservation or 
        demand side management practices;
            (C) support technologies for the development of alternative 
        sources of natural gas and synthetic gas, including coal 
        gasification technologies; and
            (D) would improve access to domestic natural gas supplies.
    (d) Consultation.--In preparing the report under subsection (a), 
the Secretary shall consult with--
        (1) experts in natural gas supply and demand; and
        (2) representatives of--
            (A) State and local governments;
            (B) tribal organizations; and
            (C) consumer and other organizations.
    (e) Hearings.--In preparing the report under subsection (a), the 
Secretary may hold public hearings and provide other opportunities for 
public comment, as the Secretary considers appropriate.

SEC. 1819. HYDROGEN PARTICIPATION STUDY.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall submit to Congress a report evaluating methodologies to 
ensure the widest participation practicable in setting goals and 
milestones under the hydrogen program of the Department, including 
international participants.

SEC. 1820. OVERALL EMPLOYMENT IN A HYDROGEN ECONOMY.

    (a) Study.--
        (1) In general.--The Secretary shall carry out a study of the 
    likely effects of a transition to a hydrogen economy on overall 
    employment in the United States.
        (2) Contents.--In completing the study, the Secretary shall 
    take into consideration--
            (A) the replacement effects of new goods and services;
            (B) international competition;
            (C) workforce training requirements;
            (D) multiple possible fuel cycles, including usage of raw 
        materials;
            (E) rates of market penetration of technologies; and
            (F) regional variations based on geography.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report describing 
the findings, conclusions, and recommendations of the study under 
subsection (a).

SEC. 1821. STUDY OF BEST MANAGEMENT PRACTICES FOR ENERGY RESEARCH AND 
              DEVELOPMENT PROGRAMS.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Public Administration under which the Academy 
shall conduct a study to assess management practices for research, 
development, and demonstration programs at the Department.
    (b) Scope of the Study.--The study shall consider--
        (1) management practices that act as barriers between the 
    Office of Science and offices conducting mission-oriented research;
        (2) recommendations for management practices that would improve 
    coordination and bridge the innovation gap between the Office of 
    Science and offices conducting mission-oriented research;
        (3) the applicability of the management practices used by the 
    Department of Defense Advanced Research Projects Agency to research 
    programs at the Department;
        (4) the advisability of creating an agency within the 
    Department modeled after the Department of Defense Advanced 
    Research Projects Agency;
        (5) recommendations for management practices that could best 
    encourage innovative research and efficiency at the Department; and
        (6) any other relevant considerations.
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report on the 
study conducted under this section.

SEC. 1822. EFFECT OF ELECTRICAL CONTAMINANTS ON RELIABILITY OF ENERGY 
              PRODUCTION SYSTEMS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall enter into a contract with the National Academy of 
Sciences under which the National Academy of Sciences shall determine 
the effect that electrical contaminants (such as tin whiskers) may have 
on the reliability of energy production systems, including nuclear 
energy.

SEC. 1823. ALTERNATIVE FUELS REPORTS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall submit to Congress reports on the 
potential for each of biodiesel and hythane to become major, 
sustainable, alternative fuels.
    (b) Biodiesel Report.--The report relating to biodiesel submitted 
under subsection (a) shall--
        (1) provide a detailed assessment of--
            (A) potential biodiesel markets and manufacturing capacity; 
        and
            (B) environmental and energy security benefits with respect 
        to the use of biodiesel;
        (2) identify any impediments, especially in infrastructure 
    needed for production, distribution, and storage, to biodiesel 
    becoming a substantial source of fuel for conventional diesel and 
    heating oil applications;
        (3) identify strategies to enhance the commercial deployment of 
    biodiesel; and
        (4) include an examination and recommendations, as appropriate, 
    of the ways in which biodiesel may be modified to be a cleaner-
    burning fuel.
    (c) Hythane Report.--The report relating to hythane submitted under 
subsection (a) shall--
        (1) provide a detailed assessment of potential hythane markets 
    and the research and development activities that are necessary to 
    facilitate the commercialization of hythane as a competitive, 
    environmentally friendly transportation fuel;
        (2) address--
            (A) the infrastructure necessary to produce, blend, 
        distribute, and store hythane for widespread commercial 
        purposes; and
            (B) other potential market barriers to the 
        commercialization of hythane;
        (3) examine the viability of producing hydrogen using energy-
    efficient, environmentally friendly methods so that the hydrogen 
    can be blended with natural gas to produce hythane; and
        (4) include an assessment of the modifications that would be 
    required to convert compressed natural gas vehicle engines to 
    engines that use hythane as fuel.
    (d) Grants for Report Completion.--The Secretary may use such sums 
as are available to the Secretary to provide, to one or more colleges 
or universities selected by the Secretary, grants for use in carrying 
out research to assist the Secretary in preparing the reports required 
to be submitted under subsection (a).

SEC. 1824. FINAL ACTION ON REFUNDS FOR EXCESSIVE CHARGES.

    The Federal Energy Regulatory Commission (FERC) shall--
        (1) seek to conclude its investigation into the unjust or 
    unreasonable charges incurred by California during the 2000-2001 
    electricity crisis as soon as possible;
        (2) seek to ensure that refunds the Commission determines are 
    owed to the State of California are paid to the State of 
    California; and
        (3) submit to Congress a report by December 31, 2005, 
    describing the actions taken by the Commission to date under this 
    section and timetables for further actions.

SEC. 1825. FUEL CELL AND HYDROGEN TECHNOLOGY STUDY.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall enter into a contract with the 
National Academy of Sciences and the National Research Council to carry 
out a study of fuel cell technologies that provides a budget roadmap 
for the development of fuel cell technologies and the transition from 
petroleum to hydrogen in a significant percentage of the vehicles sold 
by 2020.
    (b) Requirements.--In carrying out the study, the National Academy 
of Sciences and the National Research Council shall--
        (1) establish as a goal the maximum percentage practicable of 
    vehicles that the National Academy of Sciences and the National 
    Research Council determines can be fueled by hydrogen by 2020;
        (2) determine the amount of Federal and private funding 
    required to meet the goal established under paragraph (1);
        (3) determine what actions are required to meet the goal 
    established under paragraph (1);
        (4) examine the need for expanded and enhanced Federal research 
    and development programs, changes in regulations, grant programs, 
    partnerships between the Federal Government and industry, private 
    sector investments, infrastructure investments by the Federal 
    Government and industry, educational and public information 
    initiatives, and Federal and State tax incentives to meet the goal 
    established under paragraph (1);
        (5) consider whether other technologies would be less expensive 
    or could be more quickly implemented than fuel cell technologies to 
    achieve significant reductions in carbon dioxide emissions;
        (6) take into account any reports relating to fuel cell 
    technologies and hydrogen-fueled vehicles, including--
            (A) the report prepared by the National Academy of 
        Engineering and the National Research Council in 2004 entitled 
        ``Hydrogen Economy: Opportunities, Costs, Barriers, and R&D 
        Needs''; and
            (B) the report prepared by the U.S. Fuel Cell Council in 
        2003 entitled ``Fuel Cells and Hydrogen: The Path Forward'';
        (7) consider the challenges, difficulties, and potential 
    barriers to meeting the goal established under paragraph (1); and
        (8) with respect to the budget roadmap--
            (A) specify the amount of funding required on an annual 
        basis from the Federal Government and industry to carry out the 
        budget roadmap; and
            (B) specify the advantages and disadvantages to moving 
        toward the transition to hydrogen in vehicles in accordance 
        with the timeline established by the budget roadmap.

SEC. 1826. PASSIVE SOLAR TECHNOLOGIES.

    (a) Definition of Passive Solar Technology.--In this section, the 
term ``passive solar technology'' means a passive solar technology, 
including daylighting, that--
        (1) is used exclusively to avoid electricity use; and
        (2) can be metered to determine energy savings.
    (b) Study.--The Secretary shall conduct a study to determine--
        (1) the range of levelized costs of avoided electricity for 
    passive solar technologies;
        (2) the quantity of electricity displaced using passive solar 
    technologies in the United States as of the date of enactment of 
    this Act; and
        (3) the projected energy savings from passive solar 
    technologies in 5, 10, 15, 20, and 25 years after the date of 
    enactment of this Act if--
            (A) incentives comparable to the incentives provided for 
        electricity generation technologies were provided for passive 
        solar technologies; and
            (B) no new incentives for passive solar technologies were 
        provided.
    (c) Report.--Not later than 120 days after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the study under subsection (b).

SEC. 1827. STUDY OF LINK BETWEEN ENERGY SECURITY AND INCREASES IN 
              VEHICLE MILES TRAVELED.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences under which the Academy shall conduct 
a study to assess the implications on energy use and efficiency of land 
development patterns in the United States.
    (b) Scope.--The study shall consider--
        (1) the correlation, if any, between land development patterns 
    and increases in vehicle miles traveled;
        (2) whether petroleum use in the transportation sector can be 
    reduced through changes in the design of development patterns;
        (3) the potential benefits of--
            (A) information and education programs for State and local 
        officials (including planning officials) on the potential for 
        energy savings through planning, design, development, and 
        infrastructure decisions;
            (B) incorporation of location efficiency models in 
        transportation infrastructure planning and investments; and
            (C) transportation policies and strategies to help 
        transportation planners manage the demand for the number and 
        length of vehicle trips, including trips that increase the 
        viability of other means of travel; and
        (4) such other considerations relating to the study topic as 
    the National Academy of Sciences finds appropriate.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the National Academy of Sciences shall submit to the 
Secretary and Congress a report on the study conducted under this 
section.

SEC. 1828. SCIENCE STUDY ON CUMULATIVE IMPACTS OF MULTIPLE OFFSHORE 
              LIQUEFIED NATURAL GAS FACILITIES.

    (a) In General.--The Secretary (in consultation with the National 
Oceanic Atmospheric Administration, the Commandant of the Coast Guard, 
affected recreational and commercial fishing industries, and affected 
energy and transportation stakeholders) shall carry out a study and 
compile existing science (including studies and data) to determine the 
risks or benefits presented by cumulative impacts of multiple offshore 
liquefied natural gas facilities reasonably assumed to be constructed 
in an area of the Gulf of Mexico using the open-rack vaporization 
system.
    (b) Accuracy.--In carrying out subsection (a), the Secretary shall 
verify the accuracy of available science and develop a science-based 
evaluation of significant short-term and long-term cumulative impacts, 
both adverse and beneficial, of multiple offshore liquefied natural gas 
facilities reasonably assumed to be constructed in an area of the Gulf 
of Mexico using or proposing the open-rack vaporization system on the 
fisheries and marine populations in the vicinity of the facility.

SEC. 1829. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--The Architect of the Capitol, as part of the 
process of updating the Master Plan Study for the Capitol complex, 
shall--
        (1) carry out a study to evaluate the energy infrastructure of 
    the Capitol complex to determine how to augment the infrastructure 
    to become more energy efficient--
            (A) by using unconventional and renewable energy resources;
            (B) by--
                (i) incorporating new technologies to implement 
            effective green building solutions;
                (ii) adopting computer-based building management 
            systems; and
                (iii) recommending strategies based on end-user 
            behavioral changes to implement low-cost environmental 
            gains; and
            (C) in a manner that would enable the Capitol complex to 
        have reliable utility service in the event of power 
        fluctuations, shortages, or outages;
        (2) carry out a study to explore the feasibility of installing 
    energy and water conservation measures on the rooftop of the 
    Dirksen Senate Office Building, including the area directly above 
    the food service facilities in the center of the building, 
    including the installation of--
            (A) a vegetative covering area, using native species to the 
        maximum extent practicable, to--
                (i) insulate and increase the energy efficiency of the 
            building;
                (ii) reduce precipitation runoff and conserve water for 
            landscaping or other uses;
                (iii) increase, and provide more efficient use of, 
            available outdoor space through management of the rooftop 
            of the center of the building as a park or garden area for 
            occupants of the building; and
                (iv) improve the aesthetics of the building; and
            (B) onsite renewable energy and other state-of-the-art 
        technologies to--
                (i) improve the energy efficiency and energy security 
            of the building or the Capitol complex by providing 
            additional or backup sources of power in the event of a 
            power shortage or other emergency;
                (ii) reduce the use of resources by the building; or
                (iii) enhance worker productivity; and
            (C) not later than 180 days after the date of enactment of 
        this Act, submit to Congress a report describing the findings 
        and recommendations of the study under subparagraph (B).
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Architect of the Capitol to carry out this section 
$2,000,000 for each of fiscal years 2006 through 2010.

SEC. 1830. STUDY OF AVAILABILITY OF SKILLED WORKERS.

    (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences under which the National Academy of 
Sciences shall conduct a study of the short-term and long-term 
availability of skilled workers to meet the energy and mineral security 
requirements of the United States.
    (b) Inclusions.--The study shall include an analysis of--
        (1) the need for and availability of workers for the oil, gas, 
    and mineral industries;
        (2) the availability of skilled labor at both entry level and 
    more senior levels; and
        (3) recommendations for future actions needed to meet future 
    labor requirements.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes the results of the study.

SEC. 1831. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall complete a study to 
determine the effect that titles III, IV, and V of the Energy Policy 
Act of 1992 (42 U.S.C. 13211 et seq.) have had on--
        (1) the development of alternative fueled vehicle technology;
        (2) the availability of that technology in the market; and
        (3) the cost of alternative fueled vehicles.
    (b) Topics.--As part of the study under subsection (a), the 
Secretary shall specifically identify--
        (1) the number of alternative fueled vehicles acquired by 
    fleets or covered persons required to acquire alternative fueled 
    vehicles;
        (2) the quantity, by type, of alternative fuel actually used in 
    alternative fueled vehicles acquired by fleets or covered persons;
        (3) the quantity of petroleum displaced by the use of 
    alternative fuels in alternative fueled vehicles acquired by fleets 
    or covered persons;
        (4) the direct and indirect costs of compliance with 
    requirements under titles III, IV, and V of the Energy Policy Act 
    of 1992 (42 U.S.C. 13211 et seq.), including--
            (A) vehicle acquisition requirements imposed on fleets or 
        covered persons;
            (B) administrative and recordkeeping expenses;
            (C) fuel and fuel infrastructure costs;
            (D) associated training and employee expenses; and
            (E) any other factors or expenses the Secretary determines 
        to be necessary to compile reliable estimates of the overall 
        costs and benefits of complying with programs under those 
        titles for fleets, covered persons, and the national economy;
        (5) the existence of obstacles preventing compliance with 
    vehicle acquisition requirements and increased use of alternative 
    fuel in alternative fueled vehicles acquired by fleets or covered 
    persons; and
        (6) the projected impact of amendments to the Energy Policy Act 
    of 1992 made by this title.
    (c) Report.--Upon completion of the study under this section, the 
Secretary shall submit to Congress a report that describes the results 
of the study and includes any recommendations of the Secretary for 
legislative or administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the Energy Policy 
Act of 1992 (42 U.S.C. 13211 et seq.).

SEC. 1832. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary, in coordination and consultation with 
the States, shall conduct a study on--
        (1) the procedures currently used by electric utilities to 
    perform economic dispatch;
        (2) identifying possible revisions to those procedures to 
    improve the ability of nonutility generation resources to offer 
    their output for sale for the purpose of inclusion in economic 
    dispatch; and
        (3) the potential benefits to residential, commercial, and 
    industrial electricity consumers nationally and in each state if 
    economic dispatch procedures were revised to improve the ability of 
    nonutility generation resources to offer their output for inclusion 
    in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used in this 
section means the operation of generation facilities to produce energy 
at the lowest cost to reliably serve consumers, recognizing any 
operational limits of generation and transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 days 
after the date of enactment of this Act, and on a yearly basis 
following, the Secretary shall submit a report to Congress and the 
States on the results of the study conducted under subsection (a), 
including recommendations to Congress and the States for any suggested 
legislative or regulatory changes.

SEC. 1833. RENEWABLE ENERGY ON FEDERAL LAND.

    (a) National Academy of Sciences Study.--Not later than 90 days 
after the date of enactment of this Act, the Secretary of the Interior 
shall enter into a contract with the National Academy of Sciences under 
which the National Academy of Sciences shall--
        (1) study the potential of developing wind, solar, and ocean 
    energy resources (including tidal, wave, and thermal energy) on 
    Federal land available for those uses under current law and the 
    outer Continental Shelf;
        (2) assess any Federal law (including regulations) relating to 
    the development of those resources that is in existence on the date 
    of enactment of this Act; and
        (3) recommend statutory and regulatory mechanisms for 
    developing those resources.
    (b) Submission to Congress.--Not later than 2 years after the date 
of enactment of this Act, the Secretary of the Interior shall submit to 
Congress the results of the study under subsection (a).

SEC. 1834. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
              FACILITIES.

    (a) In General.--The Secretary of the Interior, the Secretary, and 
the Secretary of the Army shall jointly conduct a study of the 
potential for increasing electric power production capability at 
federally owned or operated water regulation, storage, and conveyance 
facilities.
    (b) Content.--The study under this section shall include 
identification and description in detail of each facility that is 
capable, with or without modification, of producing additional 
hydroelectric power, including estimation of the existing potential for 
the facility to generate hydroelectric power.
    (c) Report.--The Secretaries shall submit to the Committees on 
Energy and Commerce, Resources, and Transportation and Infrastructure 
of the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the findings, conclusions, and 
recommendations of the study under this section by not later than 18 
months after the date of the enactment of this Act. The report shall 
include each of the following:
        (1) The identifications, descriptions, and estimations referred 
    to in subsection (b).
        (2) A description of activities currently conducted or 
    considered, or that could be considered, to produce additional 
    hydroelectric power from each identified facility.
        (3) A summary of prior actions taken by the Secretaries to 
    produce additional hydroelectric power from each identified 
    facility.
        (4) The costs to install, upgrade, or modify equipment or take 
    other actions to produce additional hydroelectric power from each 
    identified facility and the level of Federal power customer 
    involvement in the determination of such costs.
        (5) The benefits that would be achieved by such installation, 
    upgrade, modification, or other action, including quantified 
    estimates of any additional energy or capacity from each facility 
    identified under subsection (b).
        (6) A description of actions that are planned, underway, or 
    might reasonably be considered to increase hydroelectric power 
    production by replacing turbine runners, by performing generator 
    upgrades or rewinds, or construction of pumped storage facilities.
        (7) The impact of increased hydroelectric power production on 
    irrigation, water supply, fish, wildlife, Indian tribes, river 
    health, water quality, navigation, recreation, fishing, and flood 
    control.
        (8) Any additional recommendations to increase hydroelectric 
    power production from, and reduce costs and improve efficiency at, 
    federally owned or operated water regulation, storage, and 
    conveyance facilities.

SEC. 1835. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND DEVELOPMENT 
              PRACTICES.

    (a) Review.--In consultation with affected private surface owners, 
oil and gas industry, and other interested parties, the Secretary of 
the Interior shall undertake a review of the current policies and 
practices with respect to management of Federal subsurface oil and gas 
development activities and their effects on the privately owned 
surface. This review shall include--
        (1) a comparison of the rights and responsibilities under 
    existing mineral and land law for the owner of a Federal mineral 
    lease, the private surface owners and the Department;
        (2) a comparison of the surface owner consent provisions in 
    section 714 of the Surface Mining Control and Reclamation Act of 
    1977 (30 U.S.C. 1304) concerning surface mining of Federal coal 
    deposits and the surface owner consent provisions for oil and gas 
    development, including coalbed methane production; and
        (3) recommendations for administrative or legislative action 
    necessary to facilitate reasonable access for Federal oil and gas 
    activities while addressing surface owner concerns and minimizing 
    impacts to private surface.
    (b) Report.--The Secretary of the Interior shall report the results 
of such review to Congress not later than 180 days after the date of 
enactment of this Act.

SEC. 1836. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE 
              POWDER RIVER BASIN.

    (a) Review.--The Secretary of the Interior shall review Federal and 
State laws in existence on the date of enactment of this Act in order 
to resolve any conflict relating to the Powder River Basin in Wyoming 
and Montana between--
        (1) the development of Federal coal; and
        (2) the development of Federal and non-Federal coalbed methane.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of the Interior shall submit to Congress a 
report that--
        (1) describes methods of resolving a conflict described in 
    subsection (a); and
        (2) identifies a method preferred by the Secretary of the 
    Interior, including proposed legislative language, if any, required 
    to implement the method.

SEC. 1837. NATIONAL SECURITY REVIEW OF INTERNATIONAL ENERGY 
              REQUIREMENTS.

    (a) Study.--The Secretary, in consultation with the Secretary of 
Defense and Secretary of Homeland Security, shall conduct a study of 
the growing energy requirements of the People's Republic of China and 
the implications of such growth on the political, strategic, economic, 
or national security interests of the United States, including--
        (1) an assessment of the type, nationality, and location of 
    energy assets that have been sought for investment by entities 
    located in the People's Republic of China;
        (2) an assessment of the extent to which investment in energy 
    assets by entities located in the People's Republic of China has 
    been on market-based terms and free from subsidies from the 
    People's Republic of China;
        (3) an assessment of the effect of investment in energy assets 
    by entities located in the People's Republic of China on the 
    control by the United States of dual-use and export-controlled 
    technologies, including the effect on current and future access to 
    foreign and domestic sources of rare earth elements used to produce 
    such technologies;
        (4) an assessment of the relationship between the Government of 
    the People's Republic of China and energy-related businesses 
    located in the People's Republic of China;
        (5) an assessment of the impact on the world energy market of 
    the common practice of entities located in the People's Republic of 
    China of removing the energy assets owned or controlled by such 
    entities from the competitive market, with emphasis on the effect 
    if such practice expands along with the growth in energy 
    consumption of the People's Republic of China;
        (6) an examination of the United States energy policy and 
    foreign policy as it relates to ensuring a competitive global 
    energy market;
        (7) an examination of the relationship between the United 
    States and the People's Republic of China as it relates to pursuing 
    energy interests in a manner that avoids conflicts; and
        (8) a comparison of the appropriate laws and regulations of 
    other nations to determine whether a United States company would be 
    permitted to purchase, acquire, merge, or otherwise establish a 
    joint relationship with an entity whose primary place of business 
    is in that other nation, including the laws and regulations of the 
    People's Republic of China.
    (b) Report and Recommendations.--Not later than 120 days after the 
date of the enactment of this Act, the Secretary, in consultation with 
the Secretary of Defense, shall report to the President and the 
Congress on the findings of the study described in subsection (a) and 
any recommendations the Secretaries consider appropriate.
    (c) Regulatory Effect.--Notwithstanding any other provision of law, 
any instrumentality of the United States vested with authority to 
review a transaction that includes an investment in a United States 
domestic corporation may not conclude a national security review 
related to an investment in the energy assets of a United States 
domestic corporation by an entity owned or controlled by the government 
of the People's Republic of China for 21 days after the report to the 
President and the Congress, and until the President certifies that he 
has received the report described in subsection (b).

SEC. 1838. USED OIL RE-REFINING STUDY.

    The Secretary, in consultation with the Administrator of the 
Environmental Protection Agency, shall undertake a study of the energy 
and environmental benefits of the re-refining of used lubricating oil 
and report to Congress within 90 days after enactment of this Act 
including recommendations of specific steps that can be taken to 
improve collections of used lubricating oil and increase re-refining 
and other beneficial re-use of such oil.

SEC. 1839. TRANSMISSION SYSTEM MONITORING.

    Within 6 months after the date of enactment of this Act, the 
Secretary and the Federal Energy Regulatory Commission shall study and 
report to Congress on the steps which must be taken to establish a 
system to make available to all transmission system owners and Regional 
Transmission Organizations (as defined in the Federal Power Act) within 
the Eastern and Western Interconnections real-time information on the 
functional status of all transmission lines within such 
Interconnections. In such study, the Commission shall assess technical 
means for implementing such transmission information system and 
identify the steps the Commission or Congress must take to require the 
implementation of such system.

SEC. 1840. REPORT IDENTIFYING AND DESCRIBING THE STATUS OF POTENTIAL 
              HYDROPOWER FACILITIES.

    (a) Report Requirement.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of the Interior, acting through 
the Bureau of Reclamation, shall submit to the Committee on Resources 
of the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report identifying and describing the status 
of potential hydropower facilities included in water surface storage 
studies undertaken by the Secretary for projects that have not been 
completed or authorized for construction.
    (b) Report Contents.--The report shall include the following:
        (1) Identification of all surface storage studies authorized by 
    Congress since the enactment of the Reclamation Project Act of 1939 
    (43 U.S.C. 485 et seq.).
        (2) The purposes of each project included within each study 
    identified under paragraph (1).
        (3) The status of each study identified under paragraph (1), 
    including for each study--
            (A) whether the study is completed or, if not completed, 
        still authorized;
            (B) the level of analyses conducted at the feasibility and 
        reconnaissance levels of review;
            (C) identifiable environmental impacts of each project 
        included in the study, including to fish and wildlife, water 
        quality, and recreation;
            (D) projected water yield from each such project;
            (E) beneficiaries of each such project;
            (F) the amount authorized and expended;
            (G) projected funding needs and timelines for completing 
        the study (if applicable);
            (H) anticipated costs of each such project; and
            (I) other factors that might interfere with construction of 
        any such project.
        (4) An identification of potential hydroelectric facilities 
    that might be developed pursuant to each study identified under 
    paragraph (1).
        (5) Applicable costs and benefits associated with potential 
    hydroelectric production pursuant to each study.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.