[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Introduced in House (IH)]

  1st Session
                                 H. R. 6

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 18, 2005

Mr. Barton of Texas (for himself, Mr. Pombo, and Mr. Thomas) introduced 
 the following bill; which was referred to the Committee on Energy and 
   Commerce, and in addition to the Committees on Education and the 
 Workforce, Financial Services, Agriculture, Resources, Science, Ways 
 and Means, and Transportation and Infrastructure, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To 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 the bill 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. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 111. Daylight savings.
            Subtitle B--Energy Assistance and State Programs

Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
                 Subtitle C--Energy Efficient Products

Sec. 131. Energy Star Program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.
Sec. 135. Preemption.
Sec. 136. State consumer product energy efficiency standards.
                       Subtitle D--Public Housing

Sec. 141. Capacity building for energy-efficient, affordable housing.
Sec. 142. Increase of cdbg public services cap for energy conservation 
                            and efficiency activities.
Sec. 143. FHA mortgage insurance incentives for energy efficient 
                            housing.
Sec. 144. Public housing capital fund.
Sec. 145. Grants for energy-conserving improvements for assisted 
                            housing.
Sec. 147. Energy-efficient appliances.
Sec. 148. Energy efficiency standards.
Sec. 149. Energy strategy for HUD.
                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for 
                            electric energy, useful heat, 
                            transportation fuels, petroleum-based 
                            product substitutes, and other commercial 
                            purposes.
Sec. 207. Biobased products.
Sec. 208. Renewable energy security.
                       Subtitle C--Hydroelectric

                     Part I--Alternative conditions

Sec. 231. Alternative conditions and fishways.
                     Part II--Additional hydropower

Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal 
                            facilities.
Sec. 245. Shift of project loads to off-peak periods.
                    TITLE III--OIL AND GAS--COMMERCE

           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.
Sec. 304. Suspension of Strategic Petroleum Reserve deliveries.
                   Subtitle B--Production Incentives

Sec. 320. Liquefaction or gasification natural gas terminals.
Sec. 327. Hydraulic fracturing.
Sec. 328. Oil and gas exploration and production defined.
Sec. 329. Outer Continental Shelf provisions.
Sec. 330. Appeals relating to pipeline construction or offshore mineral 
                            development projects.
Sec. 333. Natural gas market transparency.
                   Subtitle C--Access to Federal Land

Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 346. Compliance with executive order 13211; actions concerning 
                            regulations that significantly affect 
                            energy supply, distribution, or use.
Sec. 355. Encouraging Great Lakes oil and gas drilling ban.
Sec. 358. Federal coalbed methane regulation.
                  Subtitle D--Refining Revitalization

Sec. 371. Short title.
Sec. 372. Findings.
Sec. 373. Purpose.
Sec. 374. Designation of Refinery Revitalization Zones.
Sec. 375. Memorandum of understanding.
Sec. 376. State environmental permitting assistance.
Sec. 377. Coordination and expeditious review of permitting process.
Sec. 378. Compliance with all environmental regulations required.
Sec. 379. Definitions.
                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean Coal Centers of Excellence.
                    Subtitle B--Clean Power Projects

Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 414. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
                 Subtitle D--Coal and Related Programs

Sec. 441. Clean air coal program.
                         TITLE V--INDIAN ENERGY

Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project.
                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of 
                            liability for certain foreign incidents.
Sec. 611. Civil penalties.
Sec. 612. Financial accountability.
                  Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 629. Report on feasibility of developing commercial nuclear energy 
                            generation facilities at existing 
                            Department of Energy sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special 
                            demonstration projects for the uranium 
                            mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class c radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor 
                            terrorism.
Sec. 638. National uranium stockpile.
Sec. 639. Nuclear Regulatory Commission meetings.
Sec. 640. Employee benefits.
         Subtitle C--Additional Hydrogen Production Provisions

Sec. 651. Hydrogen production programs.
Sec. 652. Definitions.
                      Subtitle D--Nuclear Security

Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and 
                            certificate holders of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.
                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Lease condensates.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle 
                            purchasing requirements.
  Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

                        Part 1--Hybrid vehicles

Sec. 711. Hybrid vehicles.
Sec. 712. Hybrid retrofit and electric conversion program.
                       Part 2--Advanced vehicles

Sec. 721. Definitions.
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.
                        Part 3--Fuel cell buses

Sec. 731. Fuel cell transit bus demonstration.
                     Subtitle C--Clean School Buses

Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean 
                            school buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.
                       Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.
Sec. 759. Ultra-efficient engine technology for aircraft.
                   Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and 
                            enforcement of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible 
                            average fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative 
                            fueled vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for 
                            automobiles.
                          TITLE VIII--HYDROGEN

Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.
Sec. 810. Solar and wind technologies.
                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 900. Short title; definitions.
                      Subtitle A--Science Programs

Sec. 901. Office of Science programs.
Sec. 902. Systems biology program.
Sec. 903. Catalysis Research and Development Program.
Sec. 904. Hydrogen.
Sec. 905. Advanced scientific computing research.
Sec. 906.  Fusion Energy Sciences program.
Sec. 907. Science and Technology Scholarship Program.
Sec. 908. Office of Scientific and Technical Information.
Sec. 909. Science and engineering pilot program.
Sec. 910. Authorization of appropriations.
           Subtitle B--Research Administration and Operations

Sec. 911. Cost Sharing.
Sec. 912. Reprogramming.
Sec. 913. Merit-based competition.
Sec. 914. External technical review of departmental programs.
Sec. 915. Competitive award of management contracts.
Sec. 916. National Laboratory designation.
Sec. 917. Report on equal employment opportunity practices.
Sec. 918. User facility best practices plan.
Sec. 919. Support for science and energy infrastructure and facilities.
Sec. 920. Coordination plan.
Sec. 921. Availability of funds.
                     Subtitle C--Energy Efficiency

             Chapter 1--Vehicles, Buildings, and Industries

Sec. 922. Programs.
Sec. 923. Vehicles.
Sec. 924. Buildings.
Sec. 925. Industries.
Sec. 926. Demonstration and commercial application.
Sec. 927. Secondary electric vehicle battery use program.
Sec. 928. Next generation lighting initiative.
Sec. 929. Definitions.
Sec. 930. Authorization of appropriations.
Sec. 931. Limitation on use of funds.
       Chapter 2--Distributed Energy and Electric Energy Systems

Sec. 932. Distributed energy.
Sec. 933. Electricity transmission and distribution and energy 
                            assurance.
Sec. 933A. Advanced portable power devices.
Sec. 934. Authorization of appropriations.
                      Subtitle D--Renewable energy

Sec. 935. Findings.
Sec. 936. Definitions.
Sec. 937. Programs.
Sec. 938. Solar.
Sec. 939. Bioenergy programs.
Sec. 940. Wind.
Sec. 941. Geothermal.
Sec. 942. Photovoltaic demonstration program.
Sec. 943. Additional programs.
Sec. 944. Analysis and evaluation.
Sec. 945. Authorization of appropriations.
                  Subtitle E--Nuclear Energy Programs

Sec. 946. Definition.
Sec. 947. Programs.
              Chapter 1--Nuclear Energy Research Programs

Sec. 948. Advanced fuel recycling program.
Sec. 949. University nuclear science and engineering support.
Sec. 950. University-National Laboratory interactions.
Sec. 951. Nuclear Power 2010 Program.
Sec. 952. Generation IV Nuclear Energy Systems Initiative.
Sec. 953. Civilian infrastructure and facilities.
Sec. 954. Nuclear energy research and development infrastructure plan.
Sec. 955. Idaho National Laboratory facilities plan.
Sec. 956. Authorization of appropriations.
            Chapter 2--Next Generation Nuclear Plant Program

Sec. 957. Definitions.
Sec. 958. Next generation nuclear power plant.
Sec. 959. Advisory committee.
Sec. 960. Program requirements.
Sec. 961. Authorization of appropriations.
                       Subtitle F--Fossil Energy

                      Chapter 1--Research Programs

Sec. 962. Enhanced fossil energy research and development programs.
Sec. 963. Fossil research and development.
Sec. 964. Oil and gas research and development.
Sec. 965. Transportation fuels.
Sec. 966. Fuel cells.
Sec. 967. Carbon dioxide capture research and development.
Sec. 968. Authorization of appropriations.
  Chapter 2--Ultra-Deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources

Sec. 969. Program authority.
Sec. 970. Ultra-deepwater and unconventional onshore natural gas and 
                            other petroleum research and development 
                            program.
Sec. 971. Additional requirements for awards.
Sec. 972. Advisory committees.
Sec. 973. Limits on participation.
Sec. 974. Sunset.
Sec. 975. Definitions.
Sec. 976. Funding.
 Subtitle G--Improved coordination and management of civilian science 
                        and technology programs

Sec. 978. Improved coordination and management of civilian science and 
                            technology programs.
                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1002. Other transactions authority.
Sec. 1003. University collaboration.
Sec. 1004. Sense of Congress.
                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.
                   Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.
         Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.
            Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of Congress on Regional Transmission Organizations.
Sec. 1233. Regional Transmission Organization applications progress 
                            report.
Sec. 1234. Federal utility participation in Regional Transmission 
                            Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.
                  Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.
                    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. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.
                       Subtitle H--Merger Reform

Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.
                        Subtitle I--Definitions

Sec. 1295. Definitions.
            Subtitle J--Technical and Conforming Amendments

Sec. 1297. Conforming amendments.
                     Subtitle K--Economic Dispatch

Sec. 1298. Economic dispatch.
                   TITLE XIII--ENERGY TAX INCENTIVES

Sec. 1300. Short title; etc.
            Subtitle A--Energy Infrastructure Tax Incentives

Sec. 1301. Natural gas gathering lines treated as 7-year property.
Sec. 1302. Natural gas distribution lines treated as 15-year property.
Sec. 1303. Electric transmission property treated as 15-year property.
Sec. 1304. Expansion of amortization for certain atmospheric pollution 
                            control facilities in connection with 
                            plants first placed in service after 1975.
Sec. 1305. Modification of credit for producing fuel from a 
                            nonconventional source.
Sec. 1306. Modifications to special rules for nuclear decommissioning 
                            costs.
Sec. 1307. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1308. Determination of small refiner exception to oil depletion 
                            deduction.
            Subtitle B--Miscellaneous Energy Tax Incentives

Sec. 1311. Credit for residential energy efficient property.
Sec. 1312. Credit for business installation of qualified fuel cells.
Sec. 1313. Reduced motor fuel excise tax on certain mixtures of diesel 
                            fuel.
Sec. 1314. Amortization of delay rental payments.
Sec. 1315. Amortization of geological and geophysical expenditures.
Sec. 1316. Advanced lean burn technology motor vehicle credit.
Sec. 1317. Credit for energy efficiency improvements to existing homes.
               Subtitle C--Alternative minimum tax relief

Sec. 1321. New nonrefundable personal credits allowed against regular 
                            and minimum taxes.
Sec. 1322. Certain business energy credits allowed against regular and 
                            minimum taxes.
                        TITLE XIV--MISCELLANEOUS

                      Subtitle C--Other Provisions

Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives.
Sec. 1446. Regulation of certain oil used in transformers.
Sec. 1447. Risk assessments.
Sec. 1448. Oxygen-fuel.
Sec. 1449. Petrochemical and oil refinery facility health assessment.
Sec. 1450. United States-Israel cooperation.
Sec. 1451. Carbon-based fuel cell development.
                   TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential 
                            determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and 
                            cellulosic biomass loan guarantee program.
Sec. 1512. Cellulosic biomass and waste-derived ethanol conversion 
                            assistance.
Sec. 1513. Blending of compliant reformulated gasolines.
            Subtitle B--Underground Storage Tank Compliance

Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on Tribal lands.
Sec. 1530. 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--STUDIES

Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.
Sec. 1612. Report on energy integration with Latin America.
Sec. 1613. Low-volume gas reservoir study.
                      TITLE XVII--RENEWABLE ENERGY

Sec. 1701. Grants to improve the commercial value of forest biomass for 
                            electric energy, useful heat, 
                            transportation fuels, petroleum-based 
                            product substitutes, and other commercial 
                            purposes.
Sec. 1702. Environmental review for renewable energy projects.
Sec. 1703. Sense of Congress regarding generation capacity of 
                            electricity from renewable energy resources 
                            on public lands.
                     TITLE XVIII--GEOTHERMAL ENERGY

Sec. 1801. Short title.
Sec. 1802. Competitive lease sale requirements.
Sec. 1803. Direct use.
Sec. 1804. Royalties and near-term production incentives.
Sec. 1805. Expediting administrative action for geothermal leasing.
Sec. 1806. Coordination of geothermal leasing and permitting on Federal 
                            lands.
Sec. 1807. Review and report to Congress.
Sec. 1808. Reimbursement for costs of NEPA analyses, documentation, and 
                            studies.
Sec. 1809. Assessment of geothermal energy potential.
Sec. 1810. Cooperative or unit plans.
Sec. 1811. Royalty on byproducts.
Sec. 1812. Repeal of authorities of Secretary to readjust terms, 
                            conditions, rentals, and royalties.
Sec. 1813. Crediting of rental toward royalty.
Sec. 1814. Lease duration and work commitment requirements.
Sec. 1815. Advanced royalties required for suspension of production.
Sec. 1816. Annual rental.
Sec. 1817. Deposit and use of geothermal lease revenues for 5 fiscal 
                            years.
Sec. 1818. Repeal of acreage limitations.
Sec. 1819. Technical amendments.
Sec. 1820. Intermountain West Geothermal Consortium.
                         TITLE XIX--HYDROPOWER

Sec. 1901. Increased hydroelectric generation at existing Federal 
                            facilities.
Sec. 1902. Shift of project loads to off-peak periods.
Sec. 1903. Report identifying and describing the status of potential 
                            hydropower facilities.
                    TITLE XX--OIL AND GAS--RESOURCES

                   Subtitle A--Production incentives

Sec. 2001. Definition of Secretary.
Sec. 2002. Program on oil and gas royalties in-kind.
Sec. 2003. Marginal property production incentives.
Sec. 2004. Incentives for natural gas production from deep wells in the 
                            shallow waters of the Gulf of Mexico.
Sec. 2005. Royalty relief for deep water production.
Sec. 2006. Alaska offshore royalty suspension.
Sec. 2007. Oil and gas leasing in the National Petroleum Reserve in 
                            Alaska.
Sec. 2008. Orphaned, abandoned, or idled wells on Federal land.
Sec. 2009. Combined hydrocarbon leasing.
Sec. 2010. Alternate energy-related uses on the outer Continental 
                            Shelf.
Sec. 2011. Preservation of geological and geophysical data.
Sec. 2012. Oil and gas lease acreage limitations.
Sec. 2013. Deadline for decision on appeals of consistency 
                            determination under the Coastal Zone 
                            Management Act of 1972.
Sec. 2014. Reimbursement for costs of NEPA analyses, documentation, and 
                            studies.
Sec. 2015. Gas hydrate production incentive.
Sec. 2016. Onshore deep gas production incentive.
Sec. 2017. Enhanced oil and natural gas production incentive.
Sec. 2018. Oil shale.
Sec. 2019. Use of information about oil and gas public challenges.
                   Subtitle B--Access to Federal land

Sec. 2021. Office of Federal Energy Project Coordination.
Sec. 2022. Federal onshore oil and gas leasing and permitting 
                            practices.
Sec. 2023. Management of Federal oil and gas leasing programs.
Sec. 2024. Consultation regarding oil and gas leasing on public land.
Sec. 2025. Estimates of oil and gas resources underlying onshore 
                            Federal land.
Sec. 2026. Compliance with executive order 13211; actions concerning 
                            regulations that significantly affect 
                            energy supply, distribution, or use.
Sec. 2027. Pilot project to improve Federal permit coordination.
Sec. 2028. Deadline for consideration of applications for permits.
Sec. 2029. Clarification of fair market rental value determinations for 
                            public land and Forest Service rights-of-
                            way.
Sec. 2030. Energy facility rights-of-way and corridors on Federal land.
Sec. 2031. Consultation regarding energy rights-of-way on public land.
Sec. 2032. Electricity transmission line right-of-way, Cleveland 
                            National Forest and adjacent public land, 
                            California.
Sec. 2033. Sense of Congress regarding development of minerals under 
                            Padre Island National Seashore.
Sec. 2034. Livingston Parish mineral rights transfer.
                  Subtitle C--Naval Petroleum Reserves

Sec. 2041. Transfer of administrative jurisdiction and environmental 
                            remediation, Naval Petroleum Reserve 
                            Numbered 2, Kern County, California.
Sec. 2042. Land conveyance, portion of Naval Petroleum Reserve Numbered 
                            2, to City of Taft, California.
Sec. 2043. Revocation of land withdrawal.
Sec. 2044. Effect of transfer and conveyance.
                  Subtitle D--Miscellaneous Provisions

Sec. 2051. Split-estate Federal oil and gas leasing and development 
                            practices.
Sec. 2052. Royalty payments under leases under the Outer Continental 
                            Shelf Lands Act.
Sec. 2053. Domestic offshore energy reinvestment.
Sec. 2054. Repurchase of leases that are not allowed to be explored or 
                            developed.
                            TITLE XXI--COAL

Sec. 2101. Short title.
Sec. 2102. Lease modifications for contiguous coal lands or coal 
                            deposits.
Sec. 2103. Approval of logical mining units.
Sec. 2104. Payment of advance royalties under coal leases.
Sec. 2105. Elimination of deadline for submission of coal lease 
                            operation and reclamation plan.
Sec. 2106. Amendment relating to financial assurances with respect to 
                            bonus bids.
Sec. 2107. Inventory requirement.
Sec. 2108. Application of amendments.
Sec. 2109. Resolution of Federal resource development conflicts in the 
                            Powder River Basin.
            TITLE XXII--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 2201. Short title.
Sec. 2202. Definitions.
Sec. 2203. Leasing program for lands within the coastal plain.
Sec. 2204. Lease sales.
Sec. 2205. Grant of leases by the Secretary.
Sec. 2206. Lease terms and conditions.
Sec. 2207. Coastal Plain environmental protection.
Sec. 2208. Expedited judicial review.
Sec. 2209. Federal and State distribution of revenues.
Sec. 2210. Rights-of-way across the Coastal Plain.
Sec. 2211. Conveyance.
Sec. 2212. Local government impact aid and community service 
                            assistance.
                  TITLE XXIII--SET AMERICA FREE (SAFE)

Sec. 2301. Short title.
Sec. 2302. Findings.
Sec. 2303. Purpose.
Sec. 2304. United States Commission on North American Energy Freedom.
Sec. 2305. North American energy freedom policy.
 TITLE XXV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION

Sec. 2501. Short title.
Sec. 2502. Definitions.
Sec. 2503. Findings.
Sec. 2504. Research, development, and demonstration program.
Sec. 2505. Reports to Congress.
Sec. 2506. Authorization of appropriations.
                   TITLE XXVI--ADDITIONAL PROVISIONS

Sec. 2601. Limitation on required review under NEPA.
Sec. 2602. Enhancing energy efficiency in management of Federal lands.

                       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.
    (d) Energy Infrastructure.--The Architect of the Capitol, building 
on the Master Plan Study completed in July 2000, shall commission a 
study to evaluate the energy infrastructure of the Capital Complex to 
determine how the infrastructure could be augmented to become more 
energy efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility service 
in the event of power fluctuations, shortages, or outages.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Architect of the Capitol to carry out subsection 
(d), $2,000,000 for each of fiscal years 2006 through 2010.

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.''.
    (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 or submetered. Each agency shall use, to 
        the maximum extent practicable, advanced meters or advanced 
        metering devices that provide data at least daily and that 
        measure at least hourly consumption of electricity in the 
        Federal buildings of the agency. Such data shall be 
        incorporated into existing Federal energy tracking systems and 
        made available to Federal facility energy managers.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Secretary, in consultation with the Department of 
                Defense, the General Services Administration, 
                representatives from the metering industry, utility 
                industry, energy services industry, energy efficiency 
                industry, energy efficiency advocacy organizations, 
                national laboratories, universities, and Federal 
                facility energy managers, shall establish guidelines 
                for agencies to carry out paragraph (1).
                    ``(B) Requirements for guidelines.--The guidelines 
                shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                    ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in increased potential for energy 
                                management, increased potential for 
                                energy savings and energy efficiency 
                                improvement, and cost and energy 
                                savings due to utility contract 
                                aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations concerning 
                        the amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for types and 
                        locations of buildings to be metered and 
                        submetered based on cost-effectiveness and a 
                        schedule of 1 or more dates, not later than 1 
                        year after the date of issuance of the 
                        guidelines, on which the requirements specified 
                        in paragraph (1) shall take effect; and
                            ``(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.
    ``(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) Limitations.--
            (1) In general.--Section 801(a) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8287(a)) is amended by 
        adding at the end the following subparagraph:
    ``(E) All Federal agencies combined may not, after the date of 
enactment of the Energy Policy Act of 2005, enter into more than a 
total of 100 contracts under this title. Payments made by the Federal 
Government under all contracts permitted by this subparagraph combined 
shall not exceed a total of $500,000,000. Each Federal agency shall 
appoint a coordinator for Energy Savings Performance Contracts with the 
responsibility to monitor the number of such contracts for that Federal 
agency and the investment value of each contract. The coordinators for 
each Federal agency shall meet monthly to ensure that the limits 
specified in this subparagraph on the number of contracts and the 
payments made for the contracts are not exceeded.''.
            (2) Definition.--Section 804(1) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8287c(1)) is amended to read 
        as follows:
            ``(1) The term `Federal agency' means the Department of 
        Defense, the Department of Veterans Affairs, and the Department 
        of Energy. ''.
            (3) Validity of contracts.--The amendments made by this 
        subsection shall not affect the validity of contracts entered 
        into under title VIII of the National Energy Conservation 
        Policy Act (42 U.S.C. 8287 et seq.) before the date of 
        enactment of this Act, or of contracts described in subsection 
        (h).
    (b) Permanent Extension.--Effective October 1, 2006, section 801(c) 
of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is 
repealed.
    (c) Payment of Costs.--Section 802 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287a) is amended by inserting ``, 
water, or wastewater treatment'' after ``payment of energy''.
    (d) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
            ``(2) The term `energy savings' means a reduction in the 
        cost of energy, water, or wastewater treatment, from a base 
        cost established through a methodology set forth in the 
        contract, used in an existing federally owned building or 
        buildings or other federally owned facilities as a result of--
                    ``(A) the lease or purchase of operating equipment, 
                improvements, altered operation and maintenance, or 
                technical services;
                    ``(B) the increased efficient use of existing 
                energy sources by cogeneration or heat recovery, 
                excluding any cogeneration process for other than a 
                federally owned building or buildings or other 
                federally owned facilities; or
                    ``(C) the increased efficient use of existing water 
                sources in either interior or exterior applications.''.
    (e) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract that provides for 
        the performance of services for the design, acquisition, 
        installation, testing, and, where appropriate, operation, 
        maintenance, and repair, of an identified energy or water 
        conservation measure or series of measures at 1 or more 
        locations. Such contracts shall, with respect to an agency 
        facility that is a public building (as such term is defined in 
        section 3301 of title 40, United States Code), be in compliance 
        with the prospectus requirements and procedures of section 3307 
        of title 40, United States Code.''.
    (f) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--
                    ``(A) an energy conservation measure, as defined in 
                section 551; or
                    ``(B) a water conservation measure that improves 
                the efficiency of water use, is life-cycle cost-
                effective, and involves water conservation, water 
                recycling or reuse, more efficient treatment of 
                wastewater or stormwater, improvements in operation or 
                maintenance efficiencies, retrofit activities, or other 
                related activities, not at a Federal hydroelectric 
                facility.''.
    (g) Review.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Energy shall complete a review 
of the Energy Savings Performance Contract program to identify 
statutory, regulatory, and administrative obstacles that prevent 
Federal agencies from fully utilizing the program. In addition, this 
review shall identify all areas for increasing program flexibility and 
effectiveness, including audit and measurement verification 
requirements, accounting for energy use in determining savings, 
contracting requirements, including the identification of additional 
qualified contractors, and energy efficiency services covered. The 
Secretary shall report these findings to Congress and shall implement 
identified administrative and regulatory changes to increase program 
flexibility and effectiveness to the extent that such changes are 
consistent with statutory authority.
    (h) 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, 2006, and 
before the date of enactment of this Act, shall be deemed to have been 
entered into pursuant to such section 801 as amended by subsection (a) 
of this section.

SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Voluntary Agreements.--The Secretary of Energy is authorized to 
enter into voluntary agreements with 1 or more persons in industrial 
sectors that consume significant amounts of primary energy per unit of 
physical output to reduce the energy intensity of their production 
activities by a significant amount relative to improvements in each 
sector in recent years.
    (b) Recognition.--The Secretary of Energy, in cooperation with the 
Administrator of the Environmental Protection Agency and other 
appropriate Federal agencies, shall recognize and publicize the 
achievements of participants in voluntary agreements under this 
section.
    (c) Definition.--In this section, the term ``energy intensity'' 
means the primary energy consumed per unit of physical output in an 
industrial process.

SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary of Energy, in consultation with 
the Administrator of General Services, shall establish an Advanced 
Building Efficiency Testbed program for the development, testing, and 
demonstration of advanced engineering systems, components, and 
materials to enable innovations in building technologies. The program 
shall evaluate efficiency concepts for government and industry 
buildings, and demonstrate the ability of next generation buildings to 
support individual and organizational productivity and health 
(including by improving indoor air quality) as well as flexibility and 
technological change to improve environmental sustainability. Such 
program shall complement and not duplicate existing national programs.
    (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 of Energy 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 \1/3\ of the 
total amount to the lead university described in subsection (b), and 
provide the remaining \2/3\ to the other participants referred to in 
subsection (b) on an equal basis.

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'' and inserting ``the 2003 International Energy 
        Conservation Code''; and
            (2) by adding at the end the following:
    ``(3) Revised Federal Building Energy Efficiency Performance 
Standards.--
            ``(A) In general.--Not later than 1 year after the date of 
        enactment of this paragraph, the Secretary of Energy shall 
        establish, by rule, revised Federal building energy efficiency 
        performance standards that require that--
                    ``(i) if life-cycle cost-effective, for new Federal 
                buildings--
                            ``(I) such buildings be designed so as to 
                        achieve energy consumption levels at least 30 
                        percent below those of the version current as 
                        of the date of enactment of this paragraph of 
                        the ASHRAE Standard or the International Energy 
                        Conservation Code, as appropriate; and
                            ``(II) sustainable design principles are 
                        applied to the siting, design, and construction 
                        of all new and replacement buildings; and
                    ``(ii) where water is used to achieve energy 
                efficiency, water conservation technologies shall be 
                applied to the extent they are life-cycle cost 
                effective.
            ``(B) Additional revisions.--Not later than 1 year after 
        the date of approval of each subsequent revision of the ASHRAE 
        Standard or the International Energy Conservation Code, as 
        appropriate, the Secretary of Energy shall determine, based on 
        the cost-effectiveness of the requirements under the 
        amendments, whether the revised standards established under 
        this paragraph should be updated to reflect the amendments.
            ``(C) Statement on compliance of new buildings.--In the 
        budget request of the Federal agency for each fiscal year and 
        each report submitted by the Federal agency under section 
        548(a) of the National Energy Conservation Policy Act (42 
        U.S.C. 8258(a)), the head of each Federal agency shall 
        include--
                    ``(i) a list of all new Federal buildings owned, 
                operated, or controlled by the Federal agency; and
                    ``(ii) a statement concerning whether the Federal 
                buildings meet or exceed the revised standards 
                established under this paragraph.''.

SEC. 111. DAYLIGHT SAVINGS.

    (a) Repeal.--Section 3(a) of the Uniform Time Act of 1966 (15 
U.S.C. 260a(a)) is amended--
            (1) by striking ``April'' and inserting ``March''; and
            (2) by striking ``October'' and inserting ``November''.
    (b) Report to Congress.--Not later than 9 months after the date of 
enactment of this Act, the Secretary of Energy shall report to Congress 
on the impact this section on energy consumption in the United States.

            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 of Energy 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) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) 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).
            (6) 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 of Energy may make grants to the State 
agency responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or, if no such agency exists, a State agency designated by the Governor 
of the State, to assist units of local government in the State in 
improving the energy efficiency of public buildings and facilities--
            (1) through construction of new energy efficient public 
        buildings that use at least 30 percent less energy than a 
        comparable public building constructed in compliance with 
        standards prescribed in 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 of 
Energy $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 of Energy is authorized to make grants 
to units of local government, private, non-profit community development 
organizations, and Indian tribe economic development entities to 
improve energy efficiency; identify and develop alternative, renewable, 
and distributed energy supplies; and increase energy conservation in 
low income rural and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative, renewable, and 
        distributed energy supplies;
            (2) energy efficiency projects and energy conservation 
        programs;
            (3) studies and other activities that improve energy 
        efficiency in low income rural and urban communities;
            (4) planning and development assistance for increasing the 
        energy efficiency of buildings and facilities; and
            (5) technical and financial assistance to local government 
        and private entities on developing new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (c) Definition.--For purposes of this section, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 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 of 
Energy $20,000,000 for each of fiscal years 2006 through 2008.

                 Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

    ``There is established at the Department of Energy and the 
Environmental Protection Agency a voluntary program to identify and 
promote energy-efficient products and buildings in order to reduce 
energy consumption, improve energy security, and reduce pollution 
through voluntary labeling of or other forms of communication about 
products and buildings that meet the highest energy efficiency 
standards. Responsibilities under the program shall be divided between 
the Department of Energy and the Environmental Protection Agency 
consistent with the terms of agreements between the 2 agencies. The 
Administrator and the Secretary shall--
            ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
            ``(2) work to enhance public awareness of the Energy Star 
        label, including special outreach to small businesses;
            ``(3) preserve the integrity of the Energy Star label;
            ``(4) solicit comments from interested parties prior to 
        establishing or revising an Energy Star product category, 
        specification, or criterion (or effective dates for any of the 
        foregoing);
            ``(5) upon adoption of a new or revised product category, 
        specification, or criterion, provide reasonable notice to 
        interested parties of any changes (including effective dates) 
        in product categories, specifications, or criteria along with 
        an explanation of such changes and, where appropriate, 
        responses to comments submitted by interested parties; and
            ``(6) provide appropriate lead time (which shall be 9 
        months, unless the Agency or Department determines otherwise) 
        prior to the effective date for a new or a significant revision 
        to a product category, specification, or criterion, taking into 
        account the timing requirements of the manufacturing, product 
        marketing, and distribution process for the specific product 
        addressed.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act is amended by inserting after the 
item relating to section 324 the following new item:

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

SEC. 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.--For the purpose of ensuring that installed 
air conditioning and heating systems operate at their maximum rated 
efficiency levels, the Secretary shall, not later than 180 days after 
the date of enactment of this subsection, carry out a program to 
educate homeowners and small business owners concerning the energy 
savings resulting from properly conducted maintenance of air 
conditioning, heating, and ventilating systems. The Secretary shall 
carry out the program in a cost-shared manner in cooperation with the 
Administrator of the Environmental Protection Agency and such other 
entities as the Secretary considers appropriate, including industry 
trade associations, industry members, and energy efficiency 
organizations.
    ``(d) Small Business Education and Assistance.--The Administrator 
of the Small Business Administration, in consultation with the 
Secretary of Energy and the Administrator of the Environmental 
Protection Agency, shall develop and coordinate a Government-wide 
program, building on the existing Energy Star for Small Business 
Program, to assist small businesses to become more energy efficient, 
understand the cost savings obtainable through efficiencies, and 
identify financing options for energy efficiency upgrades. The 
Secretary and the Administrator of the Small Business Administration 
shall make the program information available directly to small 
businesses and through other Federal agencies, including the Federal 
Emergency Management Program and the Department of Agriculture.''.

SEC. 133. 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 (30)(S), by striking the period and adding 
        at the end the following: ``but does not include any lamp 
        specifically designed to be used for special purpose 
        applications and that is unlikely to be used in general purpose 
        applications such as those described in subparagraph (D), and 
        also does not include any lamp not described in subparagraph 
        (D) that is excluded by the Secretary, by rule, because the 
        lamp is designed for special applications and is unlikely to be 
        used in general purpose applications.''; and
            (2) by adding at the end the following:
            ``(32) The term `battery charger' means a device that 
        charges batteries for consumer products and includes battery 
        chargers embedded in other consumer products.
            ``(33) The term `commercial refrigerators, freezers, and 
        refrigerator-freezers' means refrigerators, freezers, or 
        refrigerator-freezers that--
                    ``(A) are not consumer products regulated under 
                this Act; and
                    ``(B) incorporate most components involved in the 
                vapor-compression cycle and the refrigerated 
                compartment in a single package.
            ``(34) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into either DC current or lower-voltage AC current to 
        operate a consumer product.
            ``(35) The term `illuminated exit sign' means a sign that--
                    ``(A) is designed to be permanently fixed in place 
                to identify an exit; and
                    ``(B) consists of an electrically powered integral 
                light source that illuminates the legend `EXIT' and any 
                directional indicators and provides contrast between 
                the legend, any directional indicators, and the 
                background.
            ``(36)(A) Except as provided in subparagraph (B), the term 
        `distribution transformer' means a transformer that--
                    ``(i) has an input voltage of 34.5 kilovolts or 
                less;
                    ``(ii) has an output voltage of 600 volts or less; 
                and
                    ``(iii) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 20 percent 
                more than the lowest voltage tap;
                    ``(ii) transformers, such as those commonly known 
                as drive transformers, rectifier transformers, auto-
                transformers, Uninterruptible Power System 
                transformers, impedance transformers, regulating 
                transformers, sealed and nonventilating transformers, 
                machine tool transformers, welding transformers, 
                grounding transformers, or testing transformers, that 
                are designed to be used in a special purpose 
                application and are unlikely to be used in general 
                purpose applications; or
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because--
                            ``(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.
            ``(37) 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.
            ``(38) The term `standby mode' means the lowest power 
        consumption mode that--
                    ``(A) cannot be switched off or influenced by the 
                user; and
                    ``(B) may persist for an indefinite time when an 
                appliance is connected to the main electricity supply 
                and used in accordance with the manufacturer's 
                instructions,
        as defined on an individual product basis by the Secretary.
            ``(39) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward so as to give 
        indirect illumination.
            ``(40) The term `traffic signal module' means a standard 8-
        inch (200mm) or 12-inch (300mm) traffic signal indication, 
        consisting of a light source, a lens, and all other parts 
        necessary for operation, that communicates movement messages to 
        drivers through red, amber, and green colors.
            ``(41) 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.
            ``(42) The term `unit heater' means a self-contained fan-
        type heater designed to be installed within the heated space, 
        except that such term does not include a warm air furnace.
            ``(43) The term `ceiling fan' means a non-portable device 
        that is suspended from a ceiling for circulating air via the 
        rotation of fan blades.
            ``(44) The term `ceiling fan light kit' means equipment 
        designed to provide light from a ceiling fan which 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 
                package at the time of sale or sold separately for 
                subsequent attachment to the fan.''.
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the following:
    ``(9) Test procedures for illuminated exit signs shall be based on 
the test method used under Version 2.0 of the Energy Star program of 
the Environmental Protection Agency for illuminated exit signs.
    ``(10) Test procedures for 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). The Secretary may review 
and revise this test procedure. For purposes of section 346(a), this 
test procedure shall be deemed to be testing requirements prescribed by 
the Secretary under section 346(a)(1) for distribution transformers for 
which the Secretary makes a determination that energy conservation 
standards would be technologically feasible and economically justified, 
and would result in significant energy savings.
    ``(11) Test procedures for traffic signal modules shall be based on 
the test method used under the Energy Star program of the Environmental 
Protection Agency for traffic signal modules, as in effect on the date 
of enactment of this paragraph.
    ``(12) Test procedures for medium base compact fluorescent lamps 
shall be based on the test methods used under the August 9, 2001, 
version of the Energy Star program of the Environmental Protection 
Agency and Department of Energy for compact fluorescent lamps. Covered 
products shall meet all test requirements for regulated parameters in 
section 325(bb). However, covered products may be marketed prior to 
completion of lamp life and lumen maintenance at 40 percent of rated 
life testing provided manufacturers document engineering predictions 
and analysis that support expected attainment of lumen maintenance at 
40 percent rated life and lamp life time.
    ``(13) The Secretary shall, not later than 18 months after the date 
of enactment of this paragraph, prescribe testing requirements for 
ceiling fans and ceiling fan light kits.''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--The Secretary 
shall, not later than 24 months after the date of enactment of this 
subsection, prescribe testing requirements for suspended ceiling fans, 
refrigerated bottled or canned beverage vending machines, and 
commercial refrigerators, freezers, and refrigerator-freezers. Such 
testing requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
suspended ceiling fans, such test procedures shall include efficiency 
at both maximum output and at an output no more than 50 percent of the 
maximum output.''.
    (c) New Standards.--Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) is amended by adding at the end the 
following:
    ``(u) Battery Charger and External Power Supply Electric Energy 
Consumption.--
            ``(1) Initial rulemaking.--(A) The Secretary shall, within 
        18 months after the date of enactment of this subsection, 
        prescribe by notice and comment, definitions and test 
        procedures for the power use of battery chargers and external 
        power supplies. In establishing these test procedures, the 
        Secretary shall consider, among other factors, existing 
        definitions and test procedures used for measuring energy 
        consumption in standby mode and other modes and assess the 
        current and projected future market for battery chargers and 
        external power supplies. This assessment shall include 
        estimates of the significance of potential energy savings from 
        technical improvements to these products and suggested product 
        classes for standards. Prior to the end of this time period, 
        the Secretary shall hold a scoping workshop to discuss and 
        receive comments on plans for developing energy conservation 
        standards for energy use for these products.
            ``(B) The Secretary shall, within 3 years after the date of 
        enactment of this subsection, issue a final rule that 
        determines whether energy conservation standards shall be 
        issued for battery chargers and external power supplies or 
        classes thereof. For each product class, any such standards 
        shall be set at the lowest level of energy use that--
                    ``(i) meets the criteria and procedures of 
                subsections (o), (p), (q), (r), (s), and (t); and
                    ``(ii) will result in significant overall annual 
                energy savings, considering both standby mode and other 
                operating modes.
            ``(2) Review of standby energy use in covered products.--In 
        determining pursuant to section 323 whether test procedures and 
        energy conservation standards pursuant to this section should 
        be revised, the Secretary shall consider, for covered products 
        that are major sources of standby mode energy consumption, 
        whether to incorporate standby mode into such test procedures 
        and energy conservation standards, taking into account, among 
        other relevant factors, standby mode power consumption compared 
        to overall product energy consumption.
            ``(3) Rulemaking.--The Secretary shall not propose a 
        standard under this section unless the Secretary has issued 
        applicable test procedures for each product pursuant to section 
        323.
            ``(4) Effective date.--Any standard issued under this 
        subsection shall be applicable to products manufactured or 
        imported 3 years after the date of issuance.
            ``(5) Voluntary programs.--The Secretary and the 
        Administrator shall collaborate and develop programs, including 
        programs pursuant to section 324A (relating to Energy Star 
        Programs) and other voluntary industry agreements or codes of 
        conduct, that are designed to reduce standby mode energy use.
    ``(v) Suspended Ceiling Fans, Vending Machines, and Commercial 
Refrigerators, Freezers, and Refrigerator-Freezers.--The Secretary 
shall not later than 36 months after the date on which testing 
requirements are prescribed by the Secretary pursuant to section 
323(f), prescribe, by rule, energy conservation standards for suspended 
ceiling fans, refrigerated bottled or canned beverage vending machines, 
and commercial refrigerators, freezers, and refrigerator-freezers. In 
establishing standards under this subsection, the Secretary shall use 
the criteria and procedures contained in subsections (o) and (p). Any 
standard prescribed under this subsection shall apply to products 
manufactured 3 years after the date of publication of a final rule 
establishing such standard.
    ``(w) Illuminated Exit Signs.--Illuminated exit signs 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.--Torchieres 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 low voltage dry-type distribution transformers 
manufactured on or after January 1, 2006, shall be the Class I 
Efficiency Levels for distribution transformers specified in Table 4-2 
of the `Guide for Determining Energy Efficiency for Distribution 
Transformers' published by the National Electrical Manufacturers 
Association (NEMA TP-1-2002).
    ``(z) Traffic Signal Modules.--Traffic signal modules manufactured 
on or after January 1, 2006, shall meet the performance requirements 
used under the Energy Star program of the Environmental Protection 
Agency for traffic signals, as in effect on the date of enactment of 
this subsection, and shall be installed with compatible, electrically 
connected signal control interface devices and conflict monitoring 
systems.
    ``(aa) Unit Heaters.--Unit heaters manufactured on or after the 
date that is 3 years after the date of enactment of this subsection 
shall be equipped with an intermittent ignition device and shall have 
either power venting or an automatic flue damper.
    ``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and 
covered lamp (no reflector) medium base compact fluorescent lamps 
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: minimum 
initial efficacy; lumen maintenance at 1000 hours; lumen maintenance at 
40 percent of rated life; rapid cycle stress test; and lamp life. The 
Secretary may, by rule, establish requirements for color quality (CRI); 
power factor; operating frequency; and maximum allowable start time 
based on the requirements prescribed by the August 9, 2001, version of 
the Energy Star Program Requirements for Compact Fluorescent Lamps. The 
Secretary may, by rule, revise these requirements or establish other 
requirements considering energy savings, cost effectiveness, and 
consumer satisfaction.
    ``(cc) Effective Date.--Section 327 shall apply--
            ``(1) to products for which standards are to be established 
        under subsections (u) and (v) on the date on which a final rule 
        is issued by the Department of Energy, except that any State or 
        local standards prescribed or enacted for any such product 
        prior to the date on which such final rule is issued shall not 
        be preempted until the standard established under subsection 
        (u) or (v) for that product takes effect; and
            ``(2) to products for which standards are established under 
        subsections (w) through (bb) on the date of enactment of those 
        subsections, except that any State or local standards 
        prescribed or enacted prior to the date of enactment of those 
        subsections shall not be preempted until the standards 
        established under subsections (w) through (bb) take effect.
    ``(dd) Ceiling Fans.--
            ``(1) Features.--All ceiling fans manufactured on or after 
        January 1, 2006, shall have the following features:
                    ``(A) Lighting controls operate independently from 
                fan speed controls.
                    ``(B) Adjustable speed controls (either more than 1 
                speed or variable speed).
                    ``(C) The capability of reversible fan action, 
                except for fans sold for industrial applications, 
                outdoor applications, and where safety standards would 
                be violated by the use of the reversible mode. The 
                Secretary may promulgate regulations to define in 
                greater detail the exceptions provided under this 
                subparagraph but may not substantively expand the 
                exceptions.
            ``(2) Revised standards.--
                    ``(A) In general.--Notwithstanding any provision of 
                this Act, if the requirements of subsections (o) and 
                (p) are met, the Secretary may consider and prescribe 
                energy efficiency or energy use standards for 
                electricity used by ceiling fans to circulate air in a 
                room.
                    ``(B) Special consideration.--If the Secretary sets 
                such standards, the Secretary shall consider--
                            ``(i) exempting or setting different 
                        standards for certain product classes for which 
                        the primary standards are not technically 
                        feasible or economically justified; and
                            ``(ii) establishing separate exempted 
                        product classes for highly decorative fans for 
                        which air movement performance is a secondary 
                        design feature.
                    ``(C) Application.--Any air movement standard 
                prescribed under this subsection shall apply to 
                products manufactured on or after the date that is 3 
                years after the date of publication of a final rule 
                establishing the standard.''.
    (d) Residential Furnace Fans.--Section 325(f)(3) of the Energy 
Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is amended by adding 
the following new subparagraph at the end:
    ``(D) Notwithstanding any provision of this Act, the Secretary may 
consider, and prescribe, if the requirements of subsection (o) of this 
section are met, energy efficiency or energy use standards for 
electricity used for purposes of circulating air through duct work.''.

SEC. 134. 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) Not later than 3 months after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to consider 
the effectiveness of the current consumer products labeling program in 
assisting consumers in making purchasing decisions and improving energy 
efficiency and to consider changes to the labeling rules that would 
improve the effectiveness of consumer product labels. Such rulemaking 
shall be completed not later than 2 years after the date of enactment 
of this subparagraph.
    ``(G)(i) Not later than 18 months after date of enactment of this 
subparagraph, the Commission shall prescribe by rule, pursuant to this 
section, labeling requirements for the electricity used by ceiling fans 
to circulate air in a room.
    ``(ii) The rule prescribed 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 
        prescribed.''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
further amended by adding at the end the following:
    ``(5) The Secretary or the Commission, as appropriate, may, for 
covered products referred to in subsections (u) through (aa) of section 
325, prescribe, by rule, pursuant to this section, labeling 
requirements for such products after a test procedure has been set 
pursuant to section 323. In the case of products to which TP-1 
standards under section 325(y) apply, labeling requirements shall be 
based on the `Standard for the Labeling of Distribution Transformer 
Efficiency' prescribed by the National Electrical Manufacturers 
Association (NEMA TP-3) as in effect upon the date of enactment of this 
paragraph.''.

SEC. 135. PREEMPTION.

    Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 
6297) is amended by adding at the end the following:
    ``(h) Ceiling Fans.--Effective on January 1, 2006, this section 
shall apply to and supersede all State and local standards prescribed 
or enacted for ceiling fans and ceiling fan light kits.''.

SEC. 136. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.

    Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 
6297) is amended by adding at the end the following new subsection:
    ``(h) Limitation on Preemption.--Subsections (a) and (b) shall not 
apply with respect to State regulation of energy consumption or water 
use of any covered product during any period of time--
            ``(1) after the date which is 3 years after a Federal 
        standard is required by law to be established or revised, but 
        has not been established or revised; and
            ``(2) before the date on which such Federal standard is 
        established or revised.''.

                       Subtitle D--Public Housing

SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.

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

SEC. 142. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION 
              AND EFFICIENCY ACTIVITIES.

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

SEC. 143. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT 
              HOUSING.

    (a) Single Family Housing Mortgage Insurance.--Section 203(b)(2) of 
the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the 
first undesignated paragraph beginning after subparagraph (B)(ii)(IV) 
(relating to solar energy systems), by striking ``20 percent'' and 
inserting ``30 percent''.
    (b) Multifamily Housing Mortgage Insurance.--Section 207(c) of the 
National Housing Act (12 U.S.C. 1713(c)) is amended, in the last 
undesignated paragraph beginning after paragraph (3) (relating to solar 
energy systems and residential energy conservation measures), by 
striking ``20 percent'' and inserting ``30 percent''.
    (c) Cooperative Housing Mortgage Insurance.--Section 213(p) of the 
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.
    (d) Rehabilitation and Neighborhood Conservation Housing Mortgage 
Insurance.--Section 220(d)(3)(B)(iii)(IV) of the National Housing Act 
(12 U.S.C. 1715k(d)(3)(B)(iii)(IV)) is amended--
            (1) by striking ``with respect to rehabilitation projects 
        involving not more than five family units,''; and
            (2) by striking ``20 per centum'' and inserting ``30 
        percent''.
    (e) Low-Income Multifamily Housing Mortgage Insurance.--Section 
221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.
    (f) Elderly Housing Mortgage Insurance.--Section 231(c)(2)(C) of 
the National Housing Act (12 U.S.C. 1715v(c)(2)(C)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.
    (g) Condominium Housing Mortgage Insurance.--Section 234(j) of the 
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.

SEC. 144. 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. 145. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED 
              HOUSING.

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

SEC. 147. 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 (as amended by this title), 
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.

SEC. 148. 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 striking ``Council of 
                American'' and all that follows through ``90.1-1989')'' 
                and inserting ``2003 International Energy Conservation 
                Code'';
            (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 striking ``CABO'' and all that follows 
                through ``1989'' and inserting ``the 2003 International 
                Energy Conservation Code''; and
            (3) in subsection (c)--
                    (A) in the heading, by striking ``Model Energy 
                Code'' and inserting ``The International Energy 
                Conservation Code''; and
                    (B) by striking ``CABO'' and all that follows 
                through ``1989'' and inserting ``the 2003 International 
                Energy Conservation Code''.

SEC. 149. 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 of 
Energy shall review the available assessments of renewable energy 
resources within the United States, including solar, wind, biomass, 
ocean (tidal, wave, current, and thermal), geothermal, and 
hydroelectric energy resources, and undertake new assessments as 
necessary, taking into account changes in market conditions, available 
technologies, and other relevant factors.
    (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 of 
Energy $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 by striking ``and which 
satisfies'' and all that follows through ``Secretary shall establish.'' 
and inserting ``. If there are insufficient appropriations to make full 
payments for electric production from all qualified renewable energy 
facilities in any given year, the Secretary shall assign 60 percent of 
appropriated funds for that year to facilities that use solar, wind, 
geothermal, or closed-loop (dedicated energy crops) biomass 
technologies to generate electricity, and assign the remaining 40 
percent to other projects. The Secretary may, after transmitting to 
Congress an explanation of the reasons therefor, alter the percentage 
requirements of the preceding sentence.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting ``a not-for-profit electric cooperative, a public 
        utility described in section 115 of the Internal Revenue Code 
        of 1986, a State, Commonwealth, territory, or possession of the 
        United States or the District of Columbia, or a political 
        subdivision thereof, or an Indian tribal government or 
        subdivision thereof,''; and
            (2) by inserting ``landfill gas, livestock methane, ocean 
        (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 ``after October 1, 
2005, and before October 1, 2015''.
    (d) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill gas, 
livestock methane, ocean (tidal, wave, current, and thermal),'' after 
``wind, biomass,''.
    (e) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42 
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all 
that follows through ``of this section'' and inserting ``September 30, 
2025''.
    (f) Authorization of Appropriations.--Section 1212(g) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as may be necessary to 
        carry out this section for fiscal years 2005 through 2025.
            ``(2) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the Secretary of 
Energy, shall seek to ensure that, to the extent economically feasible 
and technically practicable, of the total amount of electric energy the 
Federal Government consumes during any fiscal year, the following 
amounts shall be renewable energy:
            (1) Not less than 3 percent in fiscal years 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 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 (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 of Energy shall provide a report to Congress 
on the progress of the Federal Government in meeting the goals 
established by this section.

SEC. 204. 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) Not later than December 31, 2006, the Secretary of the 
Interior shall submit to Congress 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 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 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 $5,000,000 for each fiscal year beginning 
                after the date of the enactment of this paragraph.''.

SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    (a) In General.--Part 4 of title V of the National Energy 
Conservation Policy Act (42 U.S.C. 8271 et seq.) is amended by adding 
at the end the following:

``SEC. 570. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

    ``(a) Photovoltaic Energy Commercialization Program.--
            ``(1) In general.--The Secretary 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 Secretary 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 Secretary 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 Secretary 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. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
              ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
              PETROLEUM-BASED PRODUCT SUBSTITUTES, AND OTHER COMMERCIAL 
              PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Thousands of communities in the United States, many 
        located near Federal lands, are at risk to wildfire. 
        Approximately 190,000,000 acres of land managed by the 
        Secretary of Agriculture and the Secretary of the Interior are 
        at risk of catastrophic fire in the near future. The 
        accumulation of heavy forest fuel loads continues to increase 
        as a result of disease, insect infestations, and drought, 
        further raising the risk of fire each year.
            (2) In addition, more than 70,000,000 acres across all land 
        ownerships are at risk to higher than normal mortality over the 
        next 15 years from insect infestation and disease. High levels 
        of tree mortality from insects and disease result in increased 
        fire risk, loss of old growth, degraded watershed conditions, 
        and changes in species diversity and productivity, as well as 
        diminished fish and wildlife habitat and decreased timber 
        values.
            (3) Preventive treatments such as removing fuel loading, 
        ladder fuels, and hazard trees, planting proper species mix and 
        restoring and protecting early successional habitat, and other 
        specific restoration treatments designed to reduce the 
        susceptibility of forest land, woodland, and rangeland to 
        insect outbreaks, disease, and catastrophic fire present the 
        greatest opportunity for long-term forest health by creating a 
        mosaic of species-mix and age distribution. Such prevention 
        treatments are widely acknowledged to be more successful and 
        cost effective than suppression treatments in the case of 
        insects, disease, and fire.
            (4) The byproducts of preventive treatment (wood, brush, 
        thinnings, chips, slash, and other hazardous fuels) removed 
        from forest lands, woodlands and rangelands represent an 
        abundant supply of biomass for biomass-to-energy facilities and 
        raw material for business. There are currently few markets for 
        the extraordinary volumes of byproducts being generated as a 
        result of the necessary large-scale preventive treatment 
        activities.
            (5) The United States should--
                    (A) promote economic and entrepreneurial 
                opportunities in using byproducts removed through 
                preventive treatment activities related to hazardous 
                fuels reduction, disease, and insect infestation; and
                    (B) develop and expand markets for traditionally 
                underused wood and biomass as an outlet for byproducts 
                of preventive treatment activities.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means trees and woody 
        plants, including limbs, tops, needles, and other woody parts, 
        and byproducts of preventive treatment, such as wood, brush, 
        thinnings, chips, and slash, that are removed--
                    (A) to reduce hazardous fuels; or
                    (B) to reduce the risk of or to contain disease or 
                insect infestation.
            (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) 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, micro-business, or a 
                corporation that is incorporated in the United States; 
                and
                    (E) a nonprofit organization.
            (4) Preferred community.--The term ``preferred community'' 
        means--
                    (A) 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 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
                    (B) 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 land, 
                        the condition of which is at significant risk 
                        of catastrophic wildfire, disease, or insect 
                        infestation or which suffers from disease or 
                        insect infestation.
            (5) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                    (A) the Secretary of Agriculture with respect to 
                National Forest System lands; and
                    (B) the Secretary of the Interior with respect to 
                Federal lands under the jurisdiction of the Secretary 
                of the Interior and Indian lands.
    (c) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make grants to 
        any person that owns or operates a facility that uses biomass 
        as a raw material to produce electric energy, sensible heat, 
        transportation fuels, or substitutes for petroleum-based 
        products to offset the costs incurred to purchase biomass for 
        use by such facility.
            (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.
    (d) 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 the anticipated public benefits of the project, including 
        the potential to develop thermal or electric energy resources 
        or affordable energy, opportunities for the creation or 
        expansion of small businesses and micro-businesses, and the 
        potential for new job creation.
            (3) Grant amount.--A grant under this subsection may not 
        exceed $500,000.
    (e) 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.
    (f) Report.--Not later than October 1, 2012, 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 the 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. 207. 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. 208. 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) Definition of Biomass.--Section 203(2) of the Biomass Energy 
and Alcohol Fuels Act of 1980 (42 U.S.C. 8802(2)) is amended to read as 
follows:
            ``(2) 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.''.
    (d) Rebate Program.--
            (1) Establishment.--The Secretary of Energy 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 of Energy 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.
    (e) Renewable Fuel Inventory.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Energy 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

                       Subtitle C--Hydroelectric

                     PART I--ALTERNATIVE CONDITIONS

SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS.

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

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ``(a) Alternative Conditions.--(1) Whenever any person applies for 
a license for any project works within any reservation of the United 
States, and the Secretary of the department under whose supervision 
such reservation falls (referred to in this subsection as `the 
Secretary') deems a condition to such license to be necessary under the 
first proviso of section 4(e), the license applicant may propose an 
alternative condition.
    ``(2) Notwithstanding the first proviso of section 4(e), the 
Secretary shall accept the proposed alternative condition referred to 
in paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary determines, based on 
substantial evidence provided by the license applicant or otherwise 
available to the Secretary, that such alternative condition--
            ``(A) provides for the adequate protection and utilization 
        of the reservation; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production,
        as compared to the condition initially deemed necessary by the 
        Secretary.
    ``(3) The Secretary shall submit into the public record of the 
Commission proceeding with any condition under section 4(e) or 
alternative condition it accepts under this section, a written 
statement explaining the basis for such condition, and reason for not 
accepting any alternative condition under this section. The written 
statement must demonstrate that the Secretary gave equal consideration 
to the effects of the condition adopted and alternatives not accepted 
on energy supply, distribution, cost, and use; flood control; 
navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other interested 
parties from proposing alternative conditions.
    ``(5) If the Secretary does not accept an applicant's alternative 
condition under this section, and the Commission finds that the 
Secretary's condition would be inconsistent with the purposes of this 
part, or other applicable law, the Commission may refer the dispute to 
the Commission's Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and issue a 
non-binding advisory within 90 days. The Secretary may accept the 
Dispute Resolution Service advisory unless the Secretary finds that the 
recommendation will not provide for the adequate protection and 
utilization of the reservation. The Secretary shall submit the advisory 
and the Secretary's final written determination into the record of the 
Commission's proceeding.
    ``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the 
Interior or the Secretary of Commerce prescribes a fishway under 
section 18, the license applicant or licensee may propose an 
alternative to such prescription to construct, maintain, or operate a 
fishway.
    ``(2) Notwithstanding section 18, the Secretary of the Interior or 
the Secretary of Commerce, as appropriate, shall accept and prescribe, 
and the Commission shall require, the proposed alternative referred to 
in paragraph (1), if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the licensee or 
otherwise available to the Secretary, that such alternative--
            ``(A) will be no less protective than the fishway initially 
        prescribed by the Secretary; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production,
        as compared to the fishway initially deemed necessary by the 
        Secretary.
    ``(3) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any prescription under section 18 or 
alternative prescription it accepts under this section, a written 
statement explaining the basis for such prescription, and reason for 
not accepting any alternative prescription under this section. The 
written statement must demonstrate that the Secretary gave equal 
consideration to the effects of the condition adopted and alternatives 
not accepted on energy supply, distribution, cost, and use; flood 
control; navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other interested 
parties from proposing alternative prescriptions.
    ``(5) If the Secretary concerned does not accept an applicant's 
alternative prescription under this section, and the Commission finds 
that the Secretary's prescription would be inconsistent with the 
purposes of this part, or other applicable law, the Commission may 
refer the dispute to the Commission's Dispute Resolution Service. The 
Dispute Resolution Service shall consult with the Secretary and the 
Commission and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advisory unless the 
Secretary finds that the recommendation will be less protective than 
the fishway initially prescribed by the Secretary. The Secretary shall 
submit the advisory and the Secretary's final written determination 
into the record of the Commission's proceeding.''.

                     PART II--ADDITIONAL HYDROPOWER

SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and sold by 
a qualified hydroelectric facility during the incentive period, the 
Secretary of Energy (referred to in this section as the ``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. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary of Energy shall make 
incentive payments to the owners or operators of hydroelectric 
facilities at existing dams to be used to make capital improvements in 
the facilities that are directly related to improving the efficiency of 
such facilities by at least 3 percent.
    (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. 243. 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 ``March 4, 2003''.

SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
              FACILITIES.

    (a) In General.--The Secretary of the Interior and the Secretary of 
Energy, in consultation with the Secretary of the Army, shall jointly 
conduct a study of the potential for increasing electric power 
production capability at federally owned or operated water regulation, 
storage, and conveyance facilities.
    (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, 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. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

    (a) In General.--The Secretary of the Interior shall--
            (1) review electric power consumption by Bureau of 
        Reclamation facilities for water pumping purposes; and
            (2) make such adjustments in such pumping as possible to 
        minimize the amount of electric power consumed for such pumping 
        during periods of peak electric power consumption, including by 
        performing as much of such pumping as possible during off-peak 
        hours at night.
    (b) Consent of Affected Irrigation Customers Required.--The 
Secretary may not under this section make any adjustment in pumping at 
a facility without the consent of each person that has contracted with 
the United States for delivery of water from the facility for use for 
irrigation and that would be affected by such adjustment.
    (c) Existing Obligations not Affected.--This section shall not be 
construed to affect any existing obligation of the Secretary to provide 
electric power, water, or other benefits from Bureau of Reclamation 
facilities, including recreational releases.

                    TITLE III--OIL AND GAS--COMMERCE

           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. 6211 
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 may be necessary to carry out this part and part 
D, to remain available until expended.'';
            (2) by striking section 186 (42 U.S.C. 6250e); and
            (3) by striking part E (42 U.S.C. 6251; relating to the 
        expiration of title I of the Act).
    (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
            (1) by 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); relating 
        to the expiration of summer fill and fuel budgeting programs); 
        and
            (3) by striking part D (42 U.S.C. 6285; relating to the 
        expiration of title II of the Act).
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended--
            (1) by 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. 
6250(b)(1)) is amended by striking all after ``increases'' through to 
``mid-October through March'' and inserting ``by more than 60 percent 
over its 5-year rolling average for the months of mid-October through 
March (considered as a heating season average)''.
    (e) Fill Strategic Petroleum Reserve to Capacity.--The Secretary of 
Energy shall, as expeditiously as practicable, acquire petroleum in 
amounts sufficient to fill the Strategic Petroleum Reserve to the 
1,000,000,000 barrel capacity authorized under section 154(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6234(a)), consistent with 
the provisions of sections 159 and 160 of such Act (42 U.S.C. 6239, 
6240).

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

    Section 713 of the Energy Act of 2000 (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 of Energy 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.

SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RESERVE DELIVERIES.

    The Secretary of Energy shall suspend deliveries of royalty-in-kind 
oil to the Strategic Petroleum Reserve until the price of oil falls 
below $40 per barrel for 2 consecutive weeks on the New York Mercantile 
Exchange.

                   Subtitle B--Production Incentives

SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS TERMINALS.

    (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) `Liquefaction or gasification natural gas terminal' 
        includes all 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 tanker, but does not include--
                    ``(A) waterborne tankers 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 Construction, Expansion, or Operation of 
Liquefaction or Gasification Natural Gas Terminals.--(1) The title for 
section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
inserting ``; liquefaction or gasification natural gas 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) Authorization for Construction, Expansion, or Operation of 
Liquefaction or Gasification Natural Gas Terminals.--
            ``(1) Commission authorization required.--No person shall 
        construct, expand, or operate a liquefaction or gasification 
        natural gas terminal without an order from the Commission 
        authorizing such person to do so.
            ``(2) Authorization procedures.--
                    ``(A) Notice and hearing.--Upon the filing of any 
                application to construct, expand, or operate a 
                liquefaction or gasification natural gas terminal, the 
                Commission shall--
                            ``(i) set the matter for hearing;
                            ``(ii) give reasonable notice of the 
                        hearing to all interested persons, including 
                        the State commission of the State in which the 
                        liquefaction or gasification natural gas 
                        terminal is located;
                            ``(iii) decide the matter in accordance 
                        with this subsection; and
                            ``(iv) issue or deny the appropriate order 
                        accordingly.
                    ``(B) Designation as lead agency.--
                            ``(i) 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. 4312 et seq.) for 
                        a liquefaction or gasification natural gas 
                        terminal.
                            ``(ii) Other agencies.--Each Federal agency 
                        considering an aspect of the construction, 
                        expansion, or operation of a liquefaction or 
                        gasification natural gas terminal shall 
                        cooperate with the Commission and comply with 
                        the deadlines established by the Commission.
                    ``(C) Schedule.--
                            ``(i) Commission authority to set 
                        schedule.--The Commission shall establish a 
                        schedule for all Federal and State 
                        administrative proceedings required under 
                        authority of Federal law to construct, expand, 
                        or operate a liquefaction or gasification 
                        natural gas terminal. In establishing the 
                        schedule, the Commission shall--
                                    ``(I) ensure expeditious completion 
                                of all such proceedings; and
                                    ``(II) accommodate the applicable 
                                schedules established by Federal law 
                                for such proceedings.
                            ``(ii) Failure to meet schedule.--If a 
                        Federal or State administrative agency does not 
                        complete a proceeding for an approval that is 
                        required before a person may construct, expand, 
                        or operate the liquefaction or gasification 
                        natural gas terminal, in accordance with the 
                        schedule established by the Commission under 
                        this subparagraph, and if--
                                    ``(I) a determination has been made 
                                by the Court pursuant to section 19(d) 
                                that such delay is unreasonable; and
                                    ``(II) the agency has failed to act 
                                on any remand by the Court within the 
                                deadline set by the Court,
                        that approval may be conclusively presumed by 
                        the Commission.
                    ``(D) Exclusive 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 the construction, expansion, or operation of 
                a liquefaction or gasification natural gas terminal. 
                Such record shall be the exclusive record for any 
                Federal administrative proceeding that is an appeal or 
                review of any such decision made or action taken.
                    ``(E) State and local safety considerations.--
                            ``(i) In general.--The Commission shall 
                        consult with the State commission of the State 
                        in which the liquefaction or gasification 
                        natural gas terminal is located regarding State 
                        and local safety considerations prior to 
                        issuing an order pursuant to this subsection 
                        and consistent with the schedule established 
                        under subparagraph (C).
                            ``(ii) State safety inspections.--The State 
                        commission of the State in which a liquefaction 
                        or gasification natural gas terminal is located 
                        may, after the terminal is operational, conduct 
                        safety inspections with respect to the 
                        liquefaction or gasification natural gas 
                        terminal if--
                                    ``(I) the State commission provides 
                                written notice to the Commission of its 
                                intention to do so; and
                                    ``(II) the inspections will be 
                                carried out in conformance with Federal 
                                regulations and guidelines.
                        Enforcement of any safety violation discovered 
                        by a State commission pursuant to this clause 
                        shall be carried out by Federal officials. The 
                        Commission shall take appropriate action in 
                        response to a report of a violation not later 
                        that 90 days after receiving such report.
                            ``(iii) State and local safety 
                        considerations.--For the purposes of this 
                        subparagraph, State and local safety 
                        considerations include--
                                    ``(I) the kind and use of the 
                                facility;
                                    ``(II) the existing and projected 
                                population and demographic 
                                characteristics of the location;
                                    ``(III) the existing and proposed 
                                land use near the location;
                                    ``(IV) the natural and physical 
                                aspects of the location;
                                    ``(V) the medical, law enforcement, 
                                and fire prevention capabilities near 
                                the location that can respond at the 
                                facility; and
                                    ``(VI) the feasibility of remote 
                                siting.
                    ``(F) Limitation.--Subparagraph (C)(ii) shall not 
                apply to any approval required to protect navigation, 
                maritime safety, or maritime security.
            ``(3) Issuance of commission order.--
                    ``(A) In general.--The Commission shall issue an 
                order authorizing, in whole or in part, the 
                construction, expansion, or operation covered by the 
                application to any qualified applicant--
                            ``(i) unless the Commission finds such 
                        actions or operations will not be consistent 
                        with the public interest; and
                            ``(ii) if the Commission has found that the 
                        applicant is--
                                    ``(I) able and willing to carry out 
                                the actions and operations proposed; 
                                and
                                    ``(II) willing to conform to the 
                                provisions of this Act and any 
                                requirements, rules, and regulations of 
                                the Commission set forth under this 
                                Act.
                    ``(B) Terms and conditions.--The Commission may by 
                its order grant an application, in whole or in part, 
                with such modification and upon such terms and 
                conditions as the Commission may find necessary or 
                appropriate.
                    ``(C) Limitations on terms and conditions to 
                commission order.--
                            ``(i) In general.--Any Commission order 
                        issued pursuant to this subsection before 
                        January 1, 2011, shall not be conditioned on--
                                    ``(I) a requirement that the 
                                liquefaction or gasification natural 
                                gas terminal offer service to persons 
                                other than the person, or any affiliate 
                                thereof, securing the order; or
                                    ``(II) any regulation of the 
                                liquefaction or gasification natural 
                                gas terminal's rates, charges, terms, 
                                or conditions of service.
                            ``(ii) Inapplicable to terminal exit 
                        pipeline.--Clause (i) shall not apply to any 
                        pipeline subject to the jurisdiction of the 
                        Commission under section 7 exiting a 
                        liquefaction or gasification natural gas 
                        terminal.
                            ``(iii) Expansion of regulated terminal.--
                        An order issued under this paragraph that 
                        relates to an expansion of an existing 
                        liquefaction or gasification natural gas 
                        terminal, where any portion of the existing 
                        terminal continues to be subject to Commission 
                        regulation of rates, charges, terms, or 
                        conditions of service, may not result in--
                                    ``(I) subsidization of the 
                                expansion by regulated terminal users;
                                    ``(II) degradation of service to 
                                the regulated terminal users; or
                                    ``(III) undue discrimination 
                                against the regulated terminal users.
                            ``(iv) Expiration.--This subparagraph shall 
                        cease to have effect on January 1, 2021.
            ``(4) Definition.--For the purposes of this subsection, the 
        term `Federal authorization' means any authorization required 
        under Federal law in order to construct, expand, or operate a 
        liquefaction or gasification natural gas terminal, including 
        such permits, special use authorizations, certifications, 
        opinions, or other approvals as may be required, whether issued 
        by a Federal or State agency.''.
    (d) 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 District of Columbia Circuit shall have original and 
        exclusive jurisdiction over any civil action--
                    ``(A) for review of any order, action, or failure 
                to act of any Federal or State administrative agency to 
                issue, condition, or deny any permit, license, 
                concurrence, or approval required under Federal law for 
                the construction, expansion, or operation of a 
                liquefaction or gasification natural gas terminal;
                    ``(B) alleging unreasonable delay, in meeting a 
                schedule established under section 3(d)(2)(C) or 
                otherwise, by any Federal or State administrative 
                agency in entering an order or taking other action 
                described in subparagraph (A); or
                    ``(C) challenging any decision made or action taken 
                by the Commission under section 3(d).
            ``(2) Commission action.--For any action described in this 
        subsection, the Commission shall file with the Court the 
        consolidated record maintained under section 3(d)(2)(D).
            ``(3) Court action.--If the Court finds under paragraph 
        (1)(A) or (B) that an order, action, failure to act, or delay 
        is inconsistent with applicable Federal law, and would prevent 
        the construction, expansion, or operation of a liquefaction or 
        gasification natural gas terminal, the order or action shall be 
        deemed to have been issued or taken, subject to any conditions 
        established by the Federal or State administrative agency upon 
        remand from the Court, such conditions to be 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 deadline for the agency to act on remand.
            ``(4) Unreasonable delay.--For the purposes of paragraph 
        (1)(B), the failure of an agency to issue a permit, license, 
        concurrence, or approval within the later of--
                    ``(A) 1 year after the date of filing of an 
                application for the permit, license, concurrence, or 
                approval; or
                    ``(B) 60 days after the date of issuance of the 
                order under section 3(d),
        shall be considered unreasonable delay unless the Court, for 
        good cause shown, determines otherwise.
            ``(5) Expedited review.--The Court shall set any action 
        brought under this subsection for expedited consideration.''.

SEC. 327. 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 pursuant to hydraulic 
                        fracturing operations related to oil or gas 
                        production activities.''.

SEC. 328. 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.''.

SEC. 329. 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) Deepwater Projects.--Section 6 of the Deepwater Port Act of 
1974 (33 U.S.C. 1505) is amended by adding at the end the following:
    ``(d) Reliance on Activities of Other Agencies.--In fulfilling the 
requirements of section 5(f)--
            ``(1) to the extent that other Federal agencies have 
        prepared environmental impact statements, are conducting 
        studies, or are monitoring the affected human, marine, or 
        coastal environment, the Secretary may use the information 
        derived from those activities in lieu of directly conducting 
        such activities; and
            ``(2) the Secretary may use information obtained from any 
        State or local government or from any person.''.
    (c) Natural Gas Defined.--Section 3(13) of the Deepwater Port Act 
of 1974 (33 U.S.C. 1502(13)) is amended to read as follows:
            ``(13) natural gas means--
                    ``(A) natural gas unmixed; or
                    ``(B) any mixture of natural or artificial gas, 
                including compressed or liquefied natural gas, natural 
                gas liquids, liquefied petroleum gas, and condensate 
                recovered from natural gas;''.

SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION OR OFFSHORE MINERAL 
              DEVELOPMENT PROJECTS.

    (a) Agency of Record, Pipeline Construction Projects.--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 Federal authority for an 
interstate natural gas pipeline construction project, including 
construction of natural gas storage and liquefied natural gas 
facilities, shall use as its exclusive record for all purposes the 
record compiled by the Federal Energy Regulatory Commission pursuant to 
the Commission's proceeding under sections 3 and 7 of the Natural Gas 
Act (15 U.S.C. 717b, 717f).
    (b) Sense of Congress.--It is the sense of Congress that all 
Federal and State agencies with jurisdiction over interstate natural 
gas pipeline construction activities should coordinate their 
proceedings within the timeframes established by the Federal Energy 
Regulatory Commission when the Commission is acting under sections 3 
and 7 of the Natural Gas Act (15 U.S.C. 717b, 717f) to determine 
whether a certificate of public convenience and necessity should be 
issued for a proposed interstate natural gas pipeline.
    (c) Agency of Record, Offshore Mineral Development Projects.--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 Federal authority for the 
permitting, approval, or other authorization of energy projects, 
including projects to explore, develop, or produce mineral resources in 
or underlying the outer Continental Shelf shall use as its exclusive 
record for all purposes (except for the filing of pleadings) the record 
compiled by the relevant Federal permitting agency.

SEC. 333. NATURAL GAS MARKET TRANSPARENCY.

    The Natural Gas Act (15 U.S.C 717 et seq.) is amended--
            (1) by redesignating section 24 as section 25; and
            (2) by inserting after section 23 the following:

``SEC. 24. NATURAL GAS MARKET TRANSPARENCY.

    ``(a) Authorization.--(1) Not later than 180 days after the date of 
enactment of the Energy Policy Act of 2005, the Federal Energy 
Regulatory Commission shall issue rules directing all entities subject 
to the Commission's jurisdiction as provided under this Act to timely 
report information about the availability and prices of natural gas 
sold at wholesale in interstate commerce to the Commission and price 
publishers.
    ``(2) The Commission shall evaluate the data for adequate price 
transparency and accuracy.
    ``(3) Rules issued under this subsection requiring the reporting of 
information to the Commission that may become publicly available shall 
be limited to aggregate data and transaction-specific data that are 
otherwise required by the Commission to be made public.
    ``(4) In exercising its authority under this section, the 
Commission shall not--
            ``(A) compete with, or displace from the market place, any 
        price publisher; or
            ``(B) regulate price publishers or impose any requirements 
        on the publication of information.
    ``(b) Timely Enforcement.--No person shall be subject to any 
penalty under this section with respect to a violation occurring more 
than 3 years before the date on which the Federal Energy Regulatory 
Commission seeks to assess a penalty.
    ``(c) Limitation on Commission Authority.--(1) The Commission shall 
not condition access to interstate pipeline transportation upon the 
reporting requirements authorized under this section.
    ``(2) Natural gas sales by a producer that are attributable to 
volumes of natural gas produced by such producer shall not be subject 
to the rules issued pursuant to this section.
    ``(3) The Commission shall not require natural gas producers, 
processors, or users who have a de minimis market presence to 
participate in the reporting requirements provided in this section.''.

                   Subtitle C--Access to Federal Land

SEC. 344. 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 lands under the jurisdiction of the Secretary of 
        the Interior; and
            (2) National Forest System lands 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 oil and gas lease 
        applications, surface use plans of operation, and applications 
        for permits to drill, including steps for processing surface 
        use plans and applications for permits to drill consistent with 
        the timelines established by the amendment made by section 348;
            (2) eliminate duplication of effort by providing for 
        coordination of planning and environmental compliance efforts; 
        and
            (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.
    (c) Data Retrieval System.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Interior and the 
        Secretary of Agriculture shall establish a joint data retrieval 
        system that is capable of--
                    (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.
            (2) Resource mapping.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary of the Interior 
        and the Secretary of Agriculture shall establish a joint 
        Geographic Information System mapping system for use in--
                    (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. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS CONCERNING 
              REGULATIONS THAT SIGNIFICANTLY AFFECT ENERGY SUPPLY, 
              DISTRIBUTION, OR USE.

    (a) Requirement.--The head of each Federal agency shall require 
that before the Federal agency takes any action that could have a 
significant adverse effect on the supply of domestic energy resources 
from Federal public land, the Federal agency taking the action shall 
comply with Executive Order No. 13211 (42 U.S.C. 13201 note).
    (b) Guidance.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Energy shall publish guidance for 
purposes of this section describing what constitutes a significant 
adverse effect on the supply of domestic energy resources under 
Executive Order No. 13211 (42 U.S.C. 13201 note).
    (c) Memorandum of Understanding.--The Secretary of the Interior and 
the Secretary of Agriculture shall include in the memorandum of 
understanding under section 344 provisions for implementing subsection 
(a) of this section.

SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS DRILLING BAN.

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

SEC. 358. 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).

                  Subtitle D--Refining Revitalization

SEC. 371. SHORT TITLE.

    This subtitle may be cited as the ``United States Refinery 
Revitalization Act of 2005''.

SEC. 372. FINDINGS.

    Congress finds the following:
            (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 use by the American people. Nearly 50 percent of the 
        petroleum in the United States is used for the production of 
        gasoline. Refined petroleum products have a significant impact 
        on interstate commerce.
            (2) United States demand for refined petroleum products 
        currently exceeds the country's petroleum refining capacity to 
        produce such products. By 2025, United States gasoline 
        consumption is projected to rise from 8,900,000 barrels per day 
        to 12,900,000 barrels per day. Diesel fuel and home heating oil 
        are becoming larger components of an increasing demand for 
        refined petroleum supply. With the increase in air travel, jet 
        fuel consumption is projected to be 789,000 barrels per day 
        higher in 2025 than today.
            (3) The petroleum refining industry is operating at 95 
        percent of capacity. The United States is currently importing 5 
        percent of its refined petroleum products and because of the 
        stringent United States gasoline and diesel fuel 
        specifications, few foreign refiners can produce the clean 
        fuels required in the United States and the number of foreign 
        suppliers that can produce United States quality gasoline is 
        decreasing.
            (4) Refiners are subject to significant environmental and 
        other regulations and face several new Clean Air Act 
        requirements over the next decade. New Clean Air Act 
        requirements will benefit the environment but will also require 
        substantial capital investment and additional government 
        permits.
            (5) No new refinery has been built in the United States 
        since 1976 and many smaller domestic refineries have become 
        idle since the removal of the Domestic Crude Oil Allocation 
        Program and because of regulatory uncertainty and generally low 
        returns on capital employed. Today, the United States has 149 
        refineries, down from 324 in 1981. Restoration of recently 
        idled refineries alone would amount to 483,570 barrels a day in 
        additional capacity, or approximately 3.3 percent of the total 
        operating capacity.
            (6) Refiners have met growing demand by increasing the use 
        of existing equipment and increasing the efficiency and 
        capacity of existing plants. But refining capacity has begun to 
        lag behind peak summer demand.
            (7) Heavy industry and manufacturing jobs have closed or 
        relocated due to barriers to investment, burdensome regulation, 
        and high costs of operation, among other reasons.
            (8) Because the production and disruption in supply of 
        refined petroleum products has a significant impact on 
        interstate commerce, it serves the national interest to 
        increase the domestic refining operating capacity.
            (10) More regulatory certainty for refinery owners is 
        needed to stimulate investment in increased refinery capacity 
        and required procedures for Federal, State, and local 
        regulatory approvals need to be streamlined to ensure that 
        increased refinery capacity can be developed and operated in a 
        safe, timely, and cost-effective manner.
            (11) The proposed Yuma Arizona Refinery, a grassroots 
        refinery facility, which only recently received its Federal air 
        quality permit after 5 years under the current regulatory 
        process, and is just now beginning its environmental impact 
        statement and local permitting process, serves as an example of 
        the obstacles a refiner would have to overcome to reopen an 
        idle refinery.

SEC. 373. PURPOSE.

    The purpose of this subtitle is to encourage the expansion of the 
United States refining capacity by providing an accelerated review and 
approval process of all regulatory approvals for certain idle 
refineries and lending corresponding legal and technical assistance to 
States with resources that may be inadequate to meet such permit review 
demands.

SEC. 374. DESIGNATION OF REFINERY REVITALIZATION ZONES.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall designate as a Refinery Revitalization Zone any area--
            (1) that--
                    (A) has experienced mass layoffs at manufacturing 
                facilities, as determined by the Secretary of Labor; or
                    (B) contains an idle refinery; and
            (2) that has an unemployment rate that exceeds the national 
        average by at least 10 percent of the national average, as set 
        by the Department of Labor, Bureau of Labor Statistics, at the 
        time of the designation as a Refinery Revitalization Zone.

SEC. 375. MEMORANDUM OF UNDERSTANDING.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall enter into a memorandum of 
understanding with the Administrator for the purposes of this subtitle. 
The Secretary and the Administrator shall each designate a senior 
official responsible for, and dedicate sufficient other staff and 
resources to ensure, full implementation of the purposes of this 
subtitle and any regulations enacted pursuant to this subtitle.
    (b) Additional Signatories.--The Governor of any State, and the 
appropriate representative of any Indian Tribe, with jurisdiction over 
a Refinery Revitalization Zone, as designated by the Secretary pursuant 
to section 374, may be signatories to the memorandum of understanding 
under this section.

SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSISTANCE.

    Not later than 30 days after a Revitalization Program Qualifying 
State becomes a signatory to the memorandum of understanding under 
section 375(b)--
            (1) the Secretary shall designate one or more employees of 
        the Department with expertise relating to the siting and 
        operation of refineries to provide legal and technical 
        assistance to that Revitalization Program Qualifying State; and
            (2) the Administrator shall designate, to provide legal and 
        technical assistance for that Revitalization Program Qualifying 
        State, one or more employees of the Environmental Protection 
        Agency with expertise on regulatory issues, relating to the 
        siting and operation of refineries, with respect to each of--
                    (A) the Clean Air Act (42 U.S.C. 7401 et seq.);
                    (B) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    (C) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.);
                    (D) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.);
                    (E) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
                seq.);
                    (F) the Toxic Substances Control Act (15 U.S.C. 
                2601 et seq.);
                    (G) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.); and
                    (H) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.).

SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF PERMITTING PROCESS.

    (a) Department of Energy as Lead Agency.--Upon written request of a 
prospective applicant for Federal authorization for a refinery facility 
in a Refinery Revitalization Zone, the Department shall act as the lead 
Federal agency for the purposes of coordinating all applicable Federal 
authorizations and environmental reviews of the refining facility. 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 of the 
refining facility.
    (b) Schedule.--
            (1) In general.--The Secretary, in coordination with the 
        agencies with authority over Federal authorizations and, as 
        appropriate, with Indian Tribes and State and local agencies 
        that are willing to coordinate their separate permitting and 
        environmental reviews with the Federal authorizations and 
        environmental reviews, shall establish a schedule with prompt 
        and binding intermediate and ultimate deadlines for the review 
        of, and Federal authorization decisions relating to, refinery 
        facility siting and operation.
            (2) Preapplication process.--Prior to establishing the 
        schedule, the Secretary shall provide an expeditious 
        preapplication mechanism for applicants to confer with the 
        agencies involved and to have each agency communicate to the 
        prospective applicant within 60 days concerning--
                    (A) the likelihood of approval for a potential 
                refinery facility; and
                    (B) key issues of concern to the agencies and local 
                community.
            (3) Schedule.--The Secretary shall consider the 
        preapplication findings under paragraph (2) in setting the 
        schedule and shall ensure that once an application has been 
        submitted with such information as the Secretary considers 
        necessary, all permit decisions and related environmental 
        reviews under all applicable Federal laws shall be completed 
        within 6 months or, where circumstances require otherwise, as 
        soon as thereafter practicable.
    (c) Consolidated Environmental Review.--
            (1) Lead agency.--In carrying out its role as the lead 
        Federal agency for environmental review, the Department shall 
        coordinate all applicable Federal actions for complying with 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) and shall be responsible for preparing any 
        environmental impact statement required by section 102(2)(C) of 
        that Act (42 U.S.C. 4332(2)(C)) or such other form of 
        environmental review as is required.
            (2) Consolidation of statements.--In carrying out paragraph 
        (1), if the Department determines an environmental impact 
        statement is required, the Department shall prepare a single 
        environmental impact statement, which shall consolidate the 
        environmental reviews of all Federal agencies considering any 
        aspect of the project covered by the environmental impact 
        statement.
    (d) Other Agencies.--Each Federal agency considering an aspect of 
the siting or operation of a refinery facility in a Refinery 
Revitalization Zone shall cooperate with the Department and comply with 
the deadlines established by the Department in the preparation of any 
environmental impact statement or such other form of review as is 
required.
    (e) Exclusive Record.--The Department 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 Department or by a Federal administrative agency or officer (or 
State administrative agency or officer acting under delegated Federal 
authority) with respect to the siting or operation of a refinery 
facility in a Refinery Revitalization Zone. Such record shall be the 
exclusive record for any Federal administrative proceeding that is an 
appeal or review of any such decision made or action taken.
    (f) Appeals.--In the event any agency has denied a Federal 
authorization required for a refinery facility in a Refinery 
Revitalization Zone, or has failed to act by a deadline established by 
the Secretary pursuant to subsection (b) for deciding whether to issue 
the Federal authorization, the applicant or any State in which the 
refinery facility would be located may file an appeal with the 
Secretary. Based on the record maintained under subsection (e), and in 
consultation with the affected agency, the Secretary may then either 
issue the necessary Federal authorization with appropriate conditions, 
or deny the appeal. The Secretary shall issue a decision within 60 days 
after the filing of the appeal. In making a decision under this 
subsection, the Secretary shall comply with applicable requirements of 
Federal law, including each of the laws referred to in section 
376(2)(A) through (H). Any judicial appeal of the Secretary's decision 
shall be to the United States Court of Appeals for the District of 
Columbia.
    (g) Conforming Regulations.--Not later than 6 months after the date 
of enactment of this Act, the Secretary shall issue any regulations 
necessary to implement this subtitle.

SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGULATIONS REQUIRED.

    Nothing in this subtitle shall be construed to waive the 
applicability of environmental laws and regulations to any refinery 
facility.

SEC. 379. DEFINITIONS.

    For the purposes of this subtitle, the term--
            (1) ``Administrator'' means the Administrator of the 
        Environmental Protection Agency;
            (2) ``Department'' means the Department of Energy;
            (3) ``Federal authorization'' means any authorization 
        required under Federal law (including the Clean Air Act, the 
        Federal Water Pollution Control Act, the Safe Drinking Water 
        Act, the Comprehensive Environmental Response, Compensation, 
        and Liability Act of 1980, the Solid Waste Disposal Act, the 
        Toxic Substances Control Act, the National Historic 
        Preservation Act, and the National Environmental Policy Act of 
        1969) in order to site, construct, upgrade, or operate a 
        refinery facility within a Refinery Revitalization Zone, 
        including such permits, special use authorizations, 
        certifications, opinions, or other approvals as may be 
        required, whether issued by a Federal, State, or local agency;
            (4) ``idle refinery'' means any real property site that has 
        been used at any time for a refinery facility since December 
        31, 1979, that has not been in operation after April 1, 2005;
            (5) ``refinery facility'' means any facility designed and 
        operated to receive, unload, store, process and refine raw 
        crude oil by any chemical or physical process, including 
        distillation, fluid catalytic cracking, hydrocracking, coking, 
        alkylation, etherification, polymerization, catalytic 
        reforming, isomerization, hydrotreating, blending, and any 
        combination thereof;
            (6) ``Revitalization Program Qualifying State'' means a 
        State or Indian Tribe that--
                    (A) has entered into the memorandum of 
                understanding pursuant to section 375(b); and
                    (B) has established a refining infrastructure 
                coordination office that the Secretary finds will 
                facilitate Federal-State cooperation for the purposes 
                of this subtitle; and
            (7) ``Secretary'' means the Secretary of Energy.

                             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 of Energy (referred to in this title as 
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 10-year plan 
containing--
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; and
            (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.

SEC. 402. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding under this 
subtitle for any project that does not advance efficiency, 
environmental performance, and cost competitiveness well beyond the 
level of technologies that are in 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 60 percent of the funds are used 
                only for projects on coal-based gasification 
                technologies, including gasification combined cycle, 
                gasification fuel cells, gasification coproduction, and 
                hybrid gasification/combustion.
                    (B) Technical milestones.--The Secretary shall 
                periodically set technical milestones specifying the 
                emission and thermal efficiency levels that coal 
                gasification projects under this subtitle shall be 
                designed, and reasonably expected, to achieve. The 
                technical milestones shall become more restrictive 
                during the life of the program. The Secretary shall set 
                the periodic milestones so as to achieve by 2020 coal 
                gasification projects able--
                            (i) to remove 99 percent of sulfur dioxide;
                            (ii) to emit not more than .05 lbs of 
                        NO<INF>x</INF> per million Btu;
                            (iii) to achieve substantial reductions in 
                        mercury emissions; and
                            (iv) to achieve a thermal efficiency of--
                                    (I) 60 percent for coal of more 
                                than 9,000 Btu;
                                    (II) 59 percent for coal of 7,000 
                                to 9,000 Btu; and
                                    (III) 50 percent for coal of less 
                                than 7,000 Btu.
            (2) Other projects.--The Secretary shall periodically set 
        technical milestones and ensure that up to 40 percent of the 
        funds appropriated pursuant to section 401(a) are used for 
        projects not described in paragraph (1). The milestones shall 
        specify the emission and thermal efficiency levels that 
        projects funded under this paragraph shall be designed to and 
        reasonably expected to achieve. The technical milestones shall 
        become more restrictive during the life of the program. The 
        Secretary shall set the periodic milestones so as to achieve by 
        2010 projects able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NO<INF>x</INF> 
                per million Btu;
                    (C) to achieve substantial reductions in mercury 
                emissions; and
                    (D) to achieve a thermal efficiency of--
                            (i) 45 percent for coal of more than 9,000 
                        Btu;
                            (ii) 44 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (iii) 40 percent for coal of less than 
                        7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2), the Secretary shall consult 
        with the Administrator of the Environmental Protection Agency 
        and interested entities, including coal producers, industries 
        using coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and organizations 
        representing workers.
            (4) Existing units.--In the case of projects at units in 
        existence on the date of enactment of this Act, in lieu of the 
        thermal efficiency requirements set forth in paragraph 
        (1)(B)(iv) and (2)(D), the milestones shall be designed to 
        achieve an overall thermal design efficiency improvement, 
        compared to the efficiency of the unit as operated, of not less 
        than--
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
            (5) Permitted uses.--In carrying out this subtitle, the 
        Secretary may fund projects that include, as part of the 
        project, the separation and capture of carbon dioxide. The 
        thermal efficiency goals of paragraphs (1), (2), and (4) shall 
        not apply for projects that separate and capture at least 50 
        percent of the facility's potential emissions of carbon 
        dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this subtitle unless the recipient documents to the 
satisfaction of the Secretary that--
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary to enable the Secretary to ensure that the award 
        funds are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities, using 
        various types of coal, that use coal as the primary feedstock 
        as of the date of enactment of this Act.
    (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary under this subtitle 
shall not exceed 50 percent.
    (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of 
section 169 of that Act (42 U.S.C. 7479), or achievable in practice for 
purposes of section 171 of that Act (42 U.S.C. 7501) solely by reason 
of the use of such technology, or the achievement of such emission 
reduction, by 1 or more facilities receiving assistance under this 
subtitle.

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.

    As part of the program authorized in section 401, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that show 
the greatest potential for advancing new clean coal technologies.

                    Subtitle B--Clean Power Projects

SEC. 411. COAL TECHNOLOGY LOAN.

    There are authorized to be appropriated to the Secretary 
$125,000,000 to provide a loan to the owner of the experimental plant 
constructed under United States Department of Energy cooperative 
agreement number DE-FC-22-91PC90544 on such terms and conditions as the 
Secretary determines, including interest rates and upfront payments.

SEC. 412. 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. 414. 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.

                 Subtitle D--Coal and Related Programs

SEC. 441. CLEAN AIR COAL PROGRAM.

    (a) Amendment.--The Energy Policy Act of 1992 is amended by adding 
the following new title at the end thereof:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.

    ``(a) Findings.--The Congress finds that--
            ``(1) new environmental regulations present additional 
        challenges for coal-fired electrical generation in the private 
        marketplace; and
            ``(2) the Department of Energy, in cooperation with 
        industry, has already fully developed and commercialized 
        several new clean-coal technologies that will allow the clean 
        use of coal.
    ``(b) 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, and 
        increase the marketplace acceptance of the new clean coal 
        technologies; and
            ``(3) advance the deployment of pollution control equipment 
        to meet the current and future obligations of coal-fired 
        generation units regulated under the Clean Air Act (42 U.S.C. 
        7402 and following).

``SEC. 3102. AUTHORIZATION OF PROGRAM.

    ``The Secretary shall carry out a program to facilitate production 
and generation of coal-based power and the installation of pollution 
control equipment.

``SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Pollution Control Projects.--There are authorized to be 
appropriated to the Secretary $300,000,000 for fiscal year 2006, 
$100,000,000 for fiscal year 2007, $40,000,000 for fiscal year 2008, 
$30,000,000 for fiscal year 2009, and $30,000,000 for fiscal year 2010, 
to remain available until expended, for carrying out the program for 
pollution control projects, which may include--
            ``(1) pollution control equipment and processes for the 
        control of mercury air emissions;
            ``(2) pollution control equipment and processes for the 
        control of nitrogen dioxide air emissions or sulfur dioxide 
        emissions;
            ``(3) pollution control equipment and processes for the 
        mitigation or collection of more than one pollutant;
            ``(4) advanced combustion technology for the control of at 
        least two pollutants, including mercury, particulate matter, 
        nitrogen oxides, and sulfur dioxide, which may also be designed 
        to improve the energy efficiency of the unit; and
            ``(5) advanced pollution control equipment and processes 
        designed to allow use of the waste byproducts or other 
        byproducts of the equipment or an electrical generation unit 
        designed to allow the use of byproducts.
Funds appropriated under this subsection which are not awarded before 
fiscal year 2012 may be applied to projects under subsection (b), in 
addition to amounts authorized under subsection (b).
    ``(b) Generation Projects.--There are authorized to be appropriated 
to the Secretary $250,000,000 for fiscal year 2007, $350,000,000 for 
fiscal year 2008, $400,000,000 for fiscal year 2009, $400,000,000 for 
fiscal year 2010, $400,000,000 for fiscal year 2011, $400,000,000 for 
fiscal year 2012, and $300,000,000 for fiscal year 2013, to remain 
available until expended, for generation projects and air pollution 
control projects. Such projects may include--
            ``(1) coal-based electrical generation equipment and 
        processes, including gasification combined cycle or other coal-
        based generation equipment and processes;
            ``(2) associated environmental control equipment, that will 
        be cost-effective and that is designed to meet anticipated 
        regulatory requirements;
            ``(3) coal-based electrical generation equipment and 
        processes, including gasification fuel cells, gasification 
        coproduction, and hybrid gasification/combustion projects; and
            ``(4) advanced coal-based electrical generation equipment 
        and processes, including oxidation combustion techniques, 
        ultra-supercritical boilers, and chemical looping, which the 
        Secretary determines will be cost-effective and could 
        substantially contribute to meeting anticipated environmental 
        or energy needs.
    ``(c) Limitation.--Funds placed at risk during any fiscal year for 
Federal loans or loan guarantees pursuant to this title may not exceed 
30 percent of the total funds obligated under this title.

``SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.

    ``The Secretary shall pursuant to authorizations contained in 
section 3103 provide funding for air pollution control projects 
designed to facilitate compliance with Federal and State environmental 
regulations, including any regulation that may be established with 
respect to mercury.

``SEC. 3105. CRITERIA FOR GENERATION PROJECTS.

    ``(a) Criteria.--The Secretary shall establish criteria on which 
selection of individual projects described in section 3103(b) should be 
based. The Secretary may modify the criteria as appropriate to reflect 
improvements in equipment, except that the criteria shall not be 
modified to be less stringent. These selection criteria shall include--
            ``(1) prioritization of projects whose installation is 
        likely to result in significant air quality improvements in 
        nonattainment air quality areas;
            ``(2) prioritization of projects that result in the 
        repowering or replacement of older, less efficient units;
            ``(3) documented broad interest in the procurement of the 
        equipment and utilization of the processes used in the projects 
        by electrical generator owners or operators;
            ``(4) equipment and processes beginning in 2006 through 
        2011 that are projected to achieve an 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 based 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
            ``(5) equipment and processes beginning in 2012 and 2013 
        that are projected to achieve an 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 based 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.
    ``(b) Selection.--(1) In selecting the projects, up to 25 percent 
of the projects selected may be either coproduction or cogeneration or 
other gasification projects, but at least 25 percent of the projects 
shall be for the sole purpose of electrical generation, and priority 
should be given to equipment and projects less than 600 MW to foster 
and promote standard designs.
    ``(2) The Secretary shall give priority to projects that have been 
developed and demonstrated that are not yet cost competitive, and for 
coal energy generation projects that advance efficiency, environmental 
performance, or cost competitiveness significantly beyond the level of 
pollution control equipment that is in operation on a full scale.

``SEC. 3106. FINANCIAL CRITERIA.

    ``(a) In General.--The Secretary shall only provide financial 
assistance to projects that meet the requirements of sections 3103 and 
3104 and are likely to--
            ``(1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy; and
            ``(2) improve the competitiveness of coal in order to 
        maintain a diversity of domestic fuel choices in the United 
        States to meet electricity generation requirements.
    ``(b) Conditions.--The Secretary shall not provide a funding award 
under this title unless--
            ``(1) the award recipient is financially viable without the 
        receipt of additional Federal funding; and
            ``(2) the recipient provides sufficient information to the 
        Secretary for the Secretary to ensure that the award funds are 
        spent efficiently and effectively.
    ``(c) Equal Access.--The Secretary shall, to the extent practical, 
utilize cooperative agreement, loan guarantee, and direct Federal loan 
mechanisms designed to ensure that all electrical generation owners 
have equal access to these technology deployment incentives. The 
Secretary shall develop and direct a competitive solicitation process 
for the selection of technologies and projects under this title.

``SEC. 3107. FEDERAL SHARE.

    ``The Federal share of the cost of a coal or related technology 
project funded by the Secretary under this title shall not exceed 50 
percent. For purposes of this title, Federal funding includes only 
appropriated funds.

``SEC. 3108. APPLICABILITY.

    ``No technology, or level of emission reduction, shall be treated 
as adequately demonstrated for purposes of section 111 of the Clean Air 
Act (42 U.S.C. 7411), achievable for purposes of section 169 of the 
Clean Air Act (42 U.S.C. 7479), or achievable in practice for purposes 
of section 171 of the Clean Air 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 this 
title.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 is amended by adding at the end the 
following:

                  ``TITLE XXXI--CLEAN AIR COAL PROGRAM

``Sec. 3101. Findings; purposes; definitions.
``Sec. 3102. Authorization of program.
``Sec. 3103. Authorization of appropriations.
``Sec. 3104. Air pollution control project criteria.
``Sec. 3105. Criteria for generation projects.
``Sec. 3106. Financial criteria.
``Sec. 3107. Federal share.
``Sec. 3108. Applicability.''.

                         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 RESOURCES

``SEC. 2601. DEFINITIONS.

    ``For purposes of 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; and
                    ``(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.
            ``(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 particular State.
            ``(4) The term `Indian tribe' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b), except that the term 
        `Indian tribe', for the purpose of paragraph (11) and sections 
        2603(b)(3) and 2604, shall 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 `tribal energy resource development 
        organization' means an organization of 2 or more entities, at 
        least 1 of which is an Indian tribe, that has the written 
        consent of the governing bodies of all Indian tribes 
        participating in the organization to apply for a grant, loan, 
        or other assistance authorized by section 2602.
            ``(11) 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 which 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; and
                    ``(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.
            ``(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;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of tribal 
                electrical generation, transmission, and distribution 
                facilities located on Indian land; and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other electric 
                transmission facilities.
            ``(3)(A) The Director may develop, in consultation with 
        Indian tribes, a formula for providing grants under this 
        subsection.
            ``(B) In providing a grant under this subsection, the 
        Director shall give priority to an application received from an 
        Indian tribe with inadequate electric service (as determined by 
        the Director).
            ``(4) The Secretary of Energy may issue such regulations as 
        necessary to carry out this subsection.
            ``(5) There are authorized to be appropriated to carry out 
        this subsection such sums as are necessary for each of fiscal 
        years 2006 through 2016.
    ``(c) Department of Energy Loan Guarantee Program.--
            ``(1) Subject to paragraph (3), 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 not more 
        than 90 percent of the unpaid principal and interest due on any 
        loan made to any Indian tribe for energy development.
            ``(2) A loan 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.
            ``(3) The aggregate outstanding amount guaranteed by the 
        Secretary of Energy at any time under this subsection shall not 
        exceed $2,000,000,000.
            ``(4) The Secretary of Energy may issue such regulations as 
        the Secretary of Energy determines are necessary to carry out 
        this subsection.
            ``(5) There are authorized to be appropriated such sums as 
        are necessary to carry out this subsection, to remain available 
        until expended.
            ``(6) Not later than 1 year from the date of enactment of 
        this section, the Secretary of Energy shall report to Congress 
        on the financing requirements of Indian tribes for energy 
        development on Indian land.
    ``(d) Federal Agencies-Indian Energy Preference.--
            ``(1) In purchasing electricity or any other energy product 
        or by-product, 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 by-product; 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) by an Indian tribe for the development of a tribal 
        energy resource inventory or tribal energy resource on Indian 
        land;
            ``(2) by an Indian tribe for the development of a 
        feasibility study or other report necessary to the development 
        of energy resources on Indian land;
            ``(3) by an Indian tribe (other than an Indian Tribe in 
        Alaska except the Metlakatla Indian Community) for the 
        development and enforcement of tribal laws (including 
        regulations) relating to tribal energy resource development and 
        the development of technical infrastructure to protect the 
        environment under applicable law;
            ``(4) by a Native Corporation for the development and 
        implementation of corporate policies and the development of 
        technical infrastructure related to energy development and 
        environmental protection under applicable law; and
            ``(5) 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.--In carrying out the obligations of the 
United States under this title, the Secretary shall ensure, to the 
maximum extent practicable and to the extent of available resources, 
that upon the request of an Indian tribe, the Indian tribe shall have 
available scientific and technical information and expertise, for use 
in the Indian tribe's regulation, development, and management of energy 
resources on Indian land. The Secretary may fulfill this responsibility 
either directly, through the use of Federal officials, or indirectly, 
by providing financial assistance to the Indian tribe to secure 
independent assistance.

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

    ``(a) Leases and Business Agreements.--Subject to the provisions of 
this section--
            ``(1) an Indian tribe may, at its discretion, enter into a 
        lease or business agreement for the purpose of energy resource 
        development on tribal land, including a lease or business 
        agreement for--
                    ``(A) exploration for, extraction of, processing 
                of, or other development of the Indian tribe's energy 
                mineral resources located on tribal land; and
                    ``(B) construction or operation of an electric 
                generation, transmission, or distribution facility 
                located on tribal land or a facility to process or 
                refine energy resources developed on tribal land; and
            ``(2) such lease or business agreement described in 
        paragraph (1) shall not require the approval of the Secretary 
        under section 2103 of the Revised Statutes (25 U.S.C. 81) or 
        any other provision of law, if--
                    ``(A) the lease or business agreement is executed 
                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 the provisions required by 
                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 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 Indian tribe's activities under such 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 pursuant to the 
provisions of this section shall be valid unless the lease, business 
agreement, or right-of-way is authorized by the provisions of a tribal 
energy resource agreement approved by the Secretary under subsection 
(e)(2).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On issuance of regulations under paragraph (8), an 
        Indian tribe may submit to the Secretary for approval a tribal 
        energy resource agreement governing leases, business 
        agreements, and rights-of-way under this section.
            ``(2)(A) Not later than 180 days after the date on which 
        the Secretary receives a tribal energy resource agreement 
        submitted by an Indian tribe under paragraph (1), or not later 
        than 60 days after the Secretary receives a revised tribal 
        energy resource agreement submitted by an Indian tribe under 
        paragraph (4)(C), (or such later date as may be agreed to by 
        the Secretary and the Indian tribe), the Secretary shall 
        approve or disapprove the tribal energy resource agreement.
            ``(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;
                            ``(VIII) identify final approval authority;
                            ``(IX) provide for public notification of 
                        final approvals;
                            ``(X) establish a process for consultation 
                        with any affected States concerning off-
                        reservation impacts, if any, identified 
                        pursuant to the provisions required under 
                        subparagraph (C)(i);
                            ``(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, in the event that any of its 
                        provisions violates an express term or 
                        requirement set forth in the tribal energy 
                        resource agreement pursuant to which it was 
                        executed--
                                    ``(aa) such provision shall be null 
                                and void; and
                                    ``(bb) if the Secretary determines 
                                such provision to be material, the 
                                Secretary shall have the authority to 
                                suspend or rescind the lease, business 
                                agreement, or right-of-way or take 
                                other appropriate action that the 
                                Secretary determines to be in the best 
                                interest of the Indian tribe;
                            ``(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 adopted pursuant 
                        to this subsection; and
                            ``(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 pursuant to paragraph (7)(B).
            ``(C) Tribal energy resource agreements submitted under 
        paragraph (1) shall establish, and include provisions to ensure 
        compliance with, an environmental review process that, with 
        respect to a lease, business agreement, or right-of-way under 
        this section, provides for--
                    ``(i) the identification and evaluation of all 
                significant environmental impacts (as compared with a 
                no-action alternative), including effects on cultural 
                resources;
                    ``(ii) the identification of proposed mitigation;
                    ``(iii) a process for ensuring that the public is 
                informed of and has an opportunity to comment on the 
                environmental impacts of the proposed action before 
                tribal approval of the lease, business agreement, or 
                right-of-way; and
                    ``(iv) sufficient administrative support and 
                technical capability to carry out the environmental 
                review process.
            ``(D) A tribal energy resource agreement negotiated between 
        the Secretary and an Indian tribe in accordance with this 
        subsection shall include--
                    ``(i) provisions requiring the Secretary to conduct 
                a periodic review and evaluation to monitor the 
                performance of the Indian tribe's activities associated 
                with the development of energy resources under the 
                tribal energy resource agreement; and
                    ``(ii) when such review and evaluation result in a 
                finding by the Secretary of imminent jeopardy to a 
                physical trust asset arising from a violation of the 
                tribal energy resource agreement or applicable Federal 
                laws, provisions authorizing the Secretary to take 
                appropriate actions determined by the Secretary to be 
                necessary to protect such asset, which actions may 
                include reassumption of responsibility for activities 
                associated with the development of energy resources on 
                tribal land until the violation and conditions that 
                gave rise to such jeopardy have been corrected.
            ``(E) The periodic review and evaluation described in 
        subparagraph (D) shall be conducted on an annual basis, except 
        that, after the third such annual review and evaluation, the 
        Secretary and the Indian tribe may mutually agree to amend the 
        tribal energy resource agreement to authorize the review and 
        evaluation required by subparagraph (D) to be conducted once 
        every 2 years.
            ``(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 under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall 
        be limited to the direct effects of that approval.
            ``(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 set forth in the Secretary's regulations adopted 
        pursuant to 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 Indian tribe's 
                rights under, the lease, business agreement, or right-
                of-way.
            ``(6)(A) For purposes of the activities to be undertaken by 
        the Secretary pursuant to this section, the Secretary shall--
                    ``(i) carry out such activities in a manner 
                consistent 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 have a trust 
        obligation to ensure that the rights and interests of an Indian 
        tribe are protected in the event that--
                    ``(i) any other party to any such lease, business 
                agreement, or right-of-way violates any applicable 
                provision of Federal law or the terms of any lease, 
                business agreement, or right-of-way under this section; 
                or
                    ``(ii) any provision in such lease, business 
                agreement, or right-of-way violates any express 
                provision or requirement set forth in the tribal energy 
                resource agreement pursuant to which the lease, 
                business agreement, or right-of-way was executed.
            ``(D) Notwithstanding subparagraph (B), the United States 
        shall not be liable to any party (including any Indian tribe) 
        for any of the negotiated terms of, or any losses resulting 
        from the negotiated terms of, a lease, business agreement, or 
        right-of-way executed pursuant to and in accordance with a 
        tribal energy resource agreement approved by the Secretary 
        under paragraph (2). For the purpose of this subparagraph, the 
        term `negotiated terms' means any terms or provisions that are 
        negotiated by an Indian tribe and any other party or parties to 
        a lease, business agreement, or right-of-way entered into 
        pursuant to an approved tribal energy resource agreement.
            ``(7)(A) In this paragraph, the term `interested party' 
        means any person or entity the interests of which have 
        sustained or will sustain a significant adverse 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 tribal remedies, and in 
        accordance with the process and requirements set forth in 
        regulations adopted by the Secretary pursuant to paragraph (8), 
        an interested party may submit to the Secretary a petition to 
        review compliance of an Indian tribe with a tribal energy 
        resource agreement of the Indian tribe approved by the 
        Secretary under paragraph (2).
            ``(C)(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, as 
        alleged in the petition.
            ``(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 (D), if the Secretary 
        determines that the Indian tribe is not in compliance with the 
        tribal energy resource agreement as alleged in the petition, 
        the Secretary shall take such action as is necessary to ensure 
        compliance with the provisions of the tribal energy resource 
        agreement, which action may include--
                    ``(I) temporarily suspending some or all activities 
                under a lease, business agreement, or right-of-way 
                under this section until the Indian tribe or such 
                activities are in compliance with the provisions of the 
                approved tribal energy resource agreement; or
                    ``(II) rescinding approval of all or part of the 
                tribal energy resource agreement, and if all of such 
                agreement is rescinded, reassuming the responsibility 
                for approval of any future leases, business agreements, 
                or rights-of-way described in subsections (a) and (b).
            ``(D) Prior to seeking to ensure compliance with the 
        provisions of the tribal energy resource agreement of an Indian 
        tribe under subparagraph (C)(iii), the Secretary shall--
                    ``(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 (C)(iii) or seeking any other remedy, 
                provide the Indian tribe with a hearing and a 
                reasonable opportunity to attain compliance with the 
                tribal energy resource agreement.
            ``(E) An Indian tribe described in subparagraph (D) shall 
        retain all rights to appeal as provided in regulations issued 
        by the Secretary.
            ``(8) Not later than 1 year after the date of enactment of 
        the Indian Tribal Energy Development and Self-Determination Act 
        of 2005, the Secretary shall issue regulations that implement 
        the provisions of this subsection, including--
                    ``(A) criteria to be used in determining the 
                capacity of an Indian tribe described in paragraph 
                (2)(B)(i), including the experience of the Indian tribe 
                in managing natural resources and financial and 
                administrative resources available for use by the 
                Indian tribe in implementing the approved tribal energy 
                resource agreement of the Indian tribe;
                    ``(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 leases, 
                        business agreements, and rights-of-way 
                        described in this subsection;
                    ``(C) provisions setting forth the scope of, and 
                procedures for, the periodic review and evaluation 
                described in subparagraphs (D) and (E) of paragraph 
                (2), including provisions for review of transactions, 
                reports, site inspections, and any other review 
                activities the Secretary determines to be appropriate; 
                and
                    ``(D) provisions defining 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 environment 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.) 
        and the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 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 implement the provisions of this 
section and to make grants or provide other appropriate assistance to 
Indian tribes to assist the Indian tribes in developing and 
implementing tribal energy resource agreements in accordance with the 
provisions of this section.

``SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW.

    ``(a) In General.--The Secretary shall conduct a review of all 
activities being conducted under the Indian Mineral Development Act of 
1982 (25 U.S.C. 2101 et seq.) as of that date.
    ``(b) Report.--Not later than 1 year after the date of enactment of 
the Indian Tribal Energy Development and Self-Determination Act of 
2005, the Secretary shall submit to Congress a report that includes--
            ``(1) the results of the review;
            ``(2) recommendations to ensure that Indian tribes have the 
        opportunity to develop Indian energy resources; and
            ``(3) an analysis of the barriers to the development of 
        energy resources on Indian land (including legal, fiscal, 
        market, and other barriers), along with recommendations for the 
        removal of those barriers.

``SEC. 2606. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
            ``(1) The term `Administrator' means the Administrator of 
        the Bonneville Power Administration and the Administrator of 
        the Western Area Power Administration.
            ``(2) The term `power marketing administration' means--
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Western Area Power Administration; and
                    ``(C) any other power administration the power 
                allocation of which is used by or for the benefit of an 
                Indian tribe located in the service area of the 
                administration.
    ``(b) Encouragement of Indian Tribal Energy Development.--Each 
Administrator shall encourage Indian tribal energy development by 
taking such actions as are appropriate, including administration of 
programs of the Bonneville Power Administration and the Western Area 
Power Administration, in accordance with this section.
    ``(c) Action by the Administrator.--In carrying out this section, 
and in accordance with existing law--
            ``(1) each Administrator shall consider the unique 
        relationship that exists between the United States and Indian 
        tribes;
            ``(2) power allocations from the Western Area Power 
        Administration to Indian tribes may be used to meet firming and 
        reserve needs of Indian-owned energy projects on Indian land;
            ``(3) the Administrator of the Western Area Power 
        Administration may purchase 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 pay more than the 
        prevailing market price for an energy product nor obtain less 
        than prevailing market terms and conditions.
    ``(d) Assistance for Transmission System Use.--(1) An Administrator 
may provide technical assistance to Indian tribes seeking to use the 
high-voltage transmission system for delivery of electric power.
    ``(2) The costs of technical assistance provided under paragraph 
(1) shall be funded by the Secretary of Energy using nonreimbursable 
funds appropriated for that purpose, or by the applicable Indian 
tribes.
    ``(e) Power Allocation Study.--Not later than 2 years after the 
date of enactment of the Indian Tribal Energy Development and Self-
Determination Act of 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 Western Area Power Administration (or power 
        sold by the Southwestern Power Administration) and the 
        Bonneville Power Administration to or for the benefit of Indian 
        tribes in service areas of those administrations; and
            ``(2) identifies--
                    ``(A) the quantity of power allocated to, or used 
                for the benefit of, Indian tribes by the Western Area 
                Power Administration;
                    ``(B) the quantity of power sold to Indian tribes 
                by other power marketing administrations; and
                    ``(C) barriers that impede tribal access to and use 
                of Federal power, including an assessment of 
                opportunities to remove those barriers and improve the 
                ability of power marketing administrations to deliver 
                Federal power.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $750,000, which shall remain 
available until expended and shall not be reimbursable.''.
    (b) Conforming Amendment.--The table of contents for the Energy 
Policy Act of 1992 is amended by striking the items relating to title 
XXVI (other than the title heading) and inserting the following:

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

SEC. 504. CONSULTATION WITH INDIAN TRIBES.

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

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT.

    The Dine Power Authority, an enterprise of the Navajo Nation, shall 
be eligible to receive grants and other assistance as authorized by 
section 217 of the Department of Energy Organization Act, as added by 
section 502 of this title, and section 2602 of the Energy Policy Act of 
1992, as amended by this title, for activities associated with the 
development of a transmission line from the Four Corners Area to 
southern Nevada, including related power generation opportunities.

                       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 of Energy 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 OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy 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 2 or more facilities located at a single site, each of which has a 
rated capacity of 100,000 electrical kilowatts or more but not more 
than 300,000 electrical kilowatts, with a combined rated capacity of 
not more than 1,300,000 electrical kilowatts.''.

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

     Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended by adding at the end the following new subsection:
    ``u. Prohibition on Assumption of Liability for Certain Foreign 
Incidents.--Notwithstanding this section or any other provision of law, 
no officer of the United States or of any department, agency, or 
instrumentality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or modification of 
a contract or other arrangement, the purpose or effect of which would 
be to directly or indirectly impose liability on the United States 
Government, or any department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear incidents 
occurring in connection with the design, construction, or operation of 
a production facility or utilization facility in any country whose 
government has been identified by the Secretary of State as engaged in 
state sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had been 
determined by the Secretary of State under section 620A(a) of the 
Foreign Assistance Act of 1961 (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 subsection shall not apply to nuclear incidents occurring as a 
result of missions, carried out under the direction of the Secretary of 
Energy, the Secretary of Defense, or the Secretary of State, that are 
necessary to safely secure, store, transport, or remove nuclear 
materials for nuclear safety or nonproliferation purposes.''.

SEC. 611. 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.

SEC. 612. FINANCIAL ACCOUNTABILITY.

    (a) Amendment.--Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the following new 
subsection:
    ``v. Financial Accountability.--(1) Notwithstanding subsection d., 
the Attorney General may bring an action in the appropriate United 
States district court to recover from a contractor of the Secretary (or 
subcontractor or supplier of such contractor) amounts paid by the 
Federal Government under an agreement of indemnification under 
subsection d. for public liability resulting from conduct which 
constitutes intentional misconduct of any corporate officer, manager, 
or superintendent of such contractor (or subcontractor or supplier of 
such contractor).
            ``(2) The Attorney General may recover under paragraph (1) 
        an amount not to exceed the amount of the profit derived by the 
        defendant from the contract.
            ``(3) No amount recovered from any contractor (or 
        subcontractor or supplier of such contractor) under paragraph 
        (1) may be reimbursed directly or indirectly by the Department 
        of Energy.
            ``(4) Paragraph (1) shall not apply to any nonprofit entity 
        conducting activities under contract for the Secretary.
            ``(5) No waiver of a defense required under this section 
        shall prevent a defendant from asserting such defense in an 
        action brought under this subsection.
            ``(6) The Secretary shall, by rule, define the terms 
        `profit' and `nonprofit entity' for purposes of this 
        subsection. Such rulemaking shall be completed not later than 
        180 days after the date of the enactment of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall not 
apply to any agreement of indemnification entered into under section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) before the 
date of the enactment of this Act.

                  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. NRC TRAINING PROGRAM.

    (a) In General.--In order to maintain the human resource investment 
and infrastructure of the United States in the nuclear sciences, health 
physics, and engineering fields, in accordance with the statutory 
authorities of the Nuclear Regulatory Commission relating to the 
civilian nuclear energy program, the Nuclear Regulatory Commission 
shall carry out a training and fellowship program to address shortages 
of individuals with critical nuclear safety regulatory skills.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Nuclear Regulatory Commission to carry out this section 
        $1,000,000 for each of fiscal years 2005 through 2009.
            (2) Availability.--Funds made available under paragraph (1) 
        shall remain available until expended.

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.

     Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is 
amended by adding at the end the following:
    ``y. Exempt from the application of sections 8344 and 8468 of title 
5, United States Code, an annuitant who was formerly an employee of the 
Commission who is hired by the Commission as a consultant, if the 
Commission finds that the annuitant has a skill that is critical to the 
performance of the duties of the Commission.''.

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. 629. REPORT ON FEASIBILITY OF DEVELOPING COMMERCIAL NUCLEAR ENERGY 
              GENERATION FACILITIES AT EXISTING DEPARTMENT OF ENERGY 
              SITES.

     Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Energy shall submit to Congress a report on the 
feasibility of developing commercial nuclear energy generation 
facilities at Department of Energy sites in existence on the date of 
enactment of this Act.

SEC. 630. URANIUM SALES.

    (a) Sales, Transfers, and Services.--Section 3112 of the USEC 
Privatization Act (42 U.S.C. 2297h-10) is amended by striking 
subsections (d), (e), and (f) and inserting the following:
    ``(3) The Secretary may transfer to the Corporation, 
notwithstanding subsections (b)(2) and (d), natural uranium in amounts 
sufficient to fulfill the Department of Energy's commitments under 
Article 4(B) of the Agreement between the Department and the 
Corporation dated June 17, 2002.
    ``(d) Inventory Sales.--(1) In addition to the transfers and sales 
authorized under subsections (b) and (c) and under paragraph (5) of 
this subsection, the United States Government may transfer or sell 
uranium in any form subject to paragraphs (2), (3), and (4).
    ``(2) Except as provided in subsections (b) and (c) and paragraph 
(5) of this subsection, no sale or transfer of uranium shall be made 
under this subsection by the United States Government unless--
            ``(A) the President determines that the material is not 
        necessary for national security needs and the sale or transfer 
        has no adverse impact on implementation of existing government-
        to-government agreements;
            ``(B) the price paid to the appropriate Federal agency, if 
        the transaction is a sale, will not be less than the fair 
        market value of the material; and
            ``(C) the sale or transfer to commercial nuclear power end 
        users is made pursuant to a contract of at least 3 years' 
        duration.
    ``(3) Except as provided in paragraph (5), the United States 
Government shall not make any transfer or sale of uranium in any form 
under this subsection that would cause the total amount of uranium 
transferred or sold pursuant to this subsection that is delivered for 
consumption by commercial nuclear power end users to exceed--
            ``(A) 3,000,000 pounds of U<INF>3</INF> O<INF>8</INF> 
        equivalent in fiscal year 2005, 2006, 2007, 2008, or 2009;
            ``(B) 5,000,000 pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2010 or 2011;
            ``(C) 7,000,000 pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2012; and
            ``(D) 10,000,000 pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2013 or any fiscal year thereafter.
    ``(4) Except for sales or transfers under paragraph (5), for the 
purposes of this subsection, the recovery of uranium from uranium 
bearing materials transferred or sold by the United States Government 
to the domestic uranium industry shall be the preferred method of 
making uranium available. The recovered uranium shall be counted 
against the annual maximum deliveries set forth in this section, when 
such uranium is sold to end users.
    ``(5) The United States Government may make the following sales and 
transfers:
            ``(A) Sales or transfers to a Federal agency if the 
        material is transferred for the use of the receiving agency 
        without any resale or transfer to another entity and the 
        material does not meet commercial specifications.
            ``(B) Sales or transfers to any person for national 
        security purposes, as determined by the Secretary.
            ``(C) Sales or transfers to any State or local agency or 
        nonprofit, charitable, or educational institution for use other 
        than the generation of electricity for commercial use.
            ``(D) Sales or transfers to the Department of Energy 
        research reactor sales program.
            ``(E) Sales or transfers, at fair market value, for 
        emergency purposes in the event of a disruption in supply to 
        commercial nuclear power end users in the United States.
            ``(F) Sales or transfers, at fair market value, for use in 
        a commercial reactor in the United States with nonstandard fuel 
        requirements.
            ``(G) Sales or transfers provided for under law for use by 
        the Tennessee Valley Authority in relation to the Department of 
        Energy's highly enriched uranium or tritium programs.
    ``(6) For purposes of this subsection, the term `United States 
Government' does not include the Tennessee Valley Authority.
    ``(e) Savings Provision.--Nothing in this subchapter modifies the 
terms of the Russian HEU Agreement.
    ``(f) Services.--Notwithstanding any other provision of this 
section, if the Secretary determines that the Corporation has failed, 
or may fail, to perform any obligation under the Agreement between the 
Department of Energy and the Corporation dated June 17, 2002, and as 
amended thereafter, which failure could result in termination of the 
Agreement, the Secretary shall notify Congress, in such a manner that 
affords Congress an opportunity to comment, prior to a determination by 
the Secretary whether termination, waiver, or modification of the 
Agreement is required. The Secretary is authorized to take such action 
as he determines necessary under the Agreement to terminate, waive, or 
modify provisions of the Agreement to achieve its purposes.''.
    (b) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary of Energy shall report to Congress on the 
implementation of this section. The report shall include a discussion 
of available excess uranium inventories; all sales or transfers made by 
the United States Government; the impact of such sales or transfers on 
the domestic uranium industry, the spot market uranium price, and the 
national security interests of the United States; and any steps taken 
to remediate any adverse impacts of such sales or transfers.

SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
              DEMONSTRATION PROJECTS FOR THE URANIUM MINING INDUSTRY.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $10,000,000 for each of fiscal 
years 2006, 2007, and 2008 for--
            (1) cooperative, cost-shared agreements between the 
        Department of Energy and domestic uranium producers to 
        identify, test, and develop improved in situ leaching mining 
        technologies, including low-cost environmental restoration 
        technologies that may be applied to sites after completion of 
        in situ leaching operations; and
            (2) funding for competitively selected demonstration 
        projects with domestic uranium producers relating to--
                    (A) enhanced production with minimal environmental 
                impacts;
                    (B) restoration of well fields; and
                    (C) decommissioning and decontamination activities.
    (b) Domestic Uranium Producer.--For purposes of this section, the 
term ``domestic uranium producer'' has the meaning given that term in 
section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-
7(4)), except that the term shall not include any producer that has not 
produced uranium from domestic reserves on or after July 30, 1998.
    (c) Limitation.--No activities funded under this section may be 
carried out in the State of New Mexico.

SEC. 632. 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 ``; and'' and
            (3) by adding at the end the following:
                    ``(E) a contractor or subcontractor of the 
                Commission.''.
    (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 540 days after the filing of a complaint under paragraph 
        (1), and there is no showing that such delay is due to the bad 
        faith of the person seeking relief under this paragraph, such 
        person may bring an action at law or equity for de novo review 
        in the appropriate district court of the United States, which 
        shall have jurisdiction over such an action without regard to 
        the amount in controversy.''.

SEC. 633. 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. 634. FERNALD BYPRODUCT MATERIAL.

     Title III of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10221 
et seq.) is amended by adding at the end the following new section:

                      ``fernald byproduct material

    ``Sec. 307. Notwithstanding any other law, the material in the 
concrete silos at the Fernald uranium processing facility managed on 
the date of enactment of this section by the Department shall be 
considered byproduct material (as defined by section 11 e.(2) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014(e)(2))). The Department may 
dispose of the material in a facility regulated by the Commission or by 
an Agreement State. If the Department disposes of the material in such 
a facility, the Commission or the Agreement State shall regulate the 
material as byproduct material under that Act. This material shall 
remain subject to the jurisdiction of the Department until it is 
received at a commercial, Commission-licensed, or Agreement State-
licensed facility, at which time the material shall be subject to the 
health and safety requirements of the Commission or the Agreement State 
with jurisdiction over the disposal site.''.

SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.

     Subtitle D of title I of the Nuclear Waste Policy Act of 1982 (42 
U.S.C. 10171) is amended by adding at the end the following new 
section:

       ``safe disposal of greater-than-class c radioactive waste

    ``Sec. 152. (a) Designation of Responsibility.--The Secretary shall 
designate an Office within the Department to have the responsibility 
for activities needed to develop a new, or use an existing, facility 
for safely disposing of all low-level radioactive waste with 
concentrations of radionuclides that exceed the limits established by 
the Commission for Class C radioactive waste (referred to in this 
section as `GTCC waste').
    ``(b) Comprehensive Plan.--The Secretary shall develop a 
comprehensive plan for permanent disposal of GTCC waste which includes 
plans for a disposal facility. This plan shall be transmitted to 
Congress in a series of reports, including the following:
            ``(1) Report on short-term plan.--Not later than 180 days 
        after the date of enactment of this section, the Secretary 
        shall submit to Congress a plan describing the Secretary's 
        operational strategy for continued recovery and storage of GTCC 
        waste until a permanent disposal facility is available.
            ``(2) Update of 1987 report.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Secretary shall 
                submit to Congress an update of the Secretary's 
                February 1987 report submitted to Congress that made 
                comprehensive recommendations for the disposal of GTCC 
                waste.
                    ``(B) Contents.--The update under this paragraph 
                shall contain--
                            ``(i) a detailed description and 
                        identification of the GTCC waste that is to be 
                        disposed;
                            ``(ii) a description of current domestic 
                        and international programs, both Federal and 
                        commercial, for management and disposition of 
                        GTCC waste;
                            ``(iii) an identification of the Federal 
                        and private options and costs for the safe 
                        disposal of GTCC waste;
                            ``(iv) an identification of the options for 
                        ensuring that, wherever possible, generators 
                        and users of GTCC waste bear all reasonable 
                        costs of waste disposal;
                            ``(v) an identification of any new 
                        statutory authority required for disposal of 
                        GTCC waste; and
                            ``(vi) in coordination with the 
                        Environmental Protection Agency and the 
                        Commission, an identification of any new 
                        regulatory guidance needed for the disposal of 
                        GTCC waste.
            ``(3) Report on cost and schedule for completion of 
        environmental impact statement and record of decision.--Not 
        later than 180 days after the date of submission of the update 
        required under paragraph (2), the Secretary shall submit to 
        Congress a report containing an estimate of the cost and 
        schedule to complete a draft and final environmental impact 
        statement and to issue a record of decision for a permanent 
        disposal facility, utilizing either a new or existing facility, 
        for GTCC waste.''.

SEC. 636. 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 Nuclear Regulatory Commission, except to 
the extent that such technologies, equipment, seals, cameras, devices, 
detectors, or systems are available for use in the design or 
construction of nuclear reactors or nuclear weapons.
    ``(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. 638. NATIONAL URANIUM STOCKPILE.

    The USEC Privatization Act (42 U.S.C. 2297h et seq.) is amended by 
adding at the end the following new section:

``SEC. 3118. NATIONAL URANIUM STOCKPILE.

    ``(a) Stockpile Creation.--The Secretary of Energy may create a 
national low-enriched uranium stockpile with the goals to--
            ``(1) enhance national energy security; and
            ``(2) reduce global proliferation threats.
    ``(b) Source of Material.--The Secretary shall obtain material for 
the stockpile from--
            ``(1) material derived from blend-down of Russian highly 
        enriched uranium derived from weapons materials; and
            ``(2) domestically mined and enriched uranium.
    ``(c) Limitation on Sales or Transfers.--Sales or transfer of 
materials in the stockpile shall occur pursuant to section 3112.''.

SEC. 639. NUCLEAR REGULATORY COMMISSION MEETINGS.

    If a quorum of the Nuclear Regulatory Commission gathers to discuss 
official Commission business the discussions shall be recorded, and the 
Commission shall notify the public of such discussions within 15 days 
after they occur. The Commission shall promptly make a transcript of 
the recording available to the public on request, except to the extent 
that public disclosure is exempted or prohibited by law. This section 
shall not apply to a meeting, within the meaning of that term under 
section 552b(a)(2) of title 5, United States Code.

SEC. 640. EMPLOYEE BENEFITS.

    Section 3110 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.--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.''.

         Subtitle C--Additional Hydrogen Production Provisions

SEC. 651. HYDROGEN PRODUCTION PROGRAMS.

    (a) Advanced Reactor Hydrogen Cogeneration Project.--
            (1) Project establishment.-- The Secretary is directed to 
        establish an Advanced Reactor Hydrogen Cogeneration Project.
            (2) Project definition.-- The project shall consist of the 
        research, development, design, construction, and operation of a 
        hydrogen production cogeneration research facility that, 
        relative to the current commercial reactors, enhances safety 
        features, reduces waste production, enhances thermal 
        efficiencies, increases proliferation resistance, and has the 
        potential for improved economics and physical security in 
        reactor siting. This facility shall be constructed so as to 
        enable research and development on advanced reactors of the 
        type selected and on alternative approaches for reactor-based 
        production of hydrogen.
            (3) Project management.--
                    (A) Management.--The project shall be managed 
                within the Department by the Office of Nuclear Energy, 
                Science, and Technology.
                    (B) Lead laboratory.--The lead laboratory for the 
                project, providing the site for the reactor 
                construction, shall be the Idaho National Laboratory 
                (in this subsection referred to as ``INL'').
                    (C) Steering committee.--The Secretary shall 
                establish a national steering committee with membership 
                from the national laboratories, universities, and 
                industry to provide advice to the Secretary and the 
                Director of the Office of Nuclear Energy, Science, and 
                Technology on technical and program management aspects 
                of the project.
                    (D) Collaboration.--Project activities shall be 
                conducted at INL, other national laboratories, 
                universities, domestic industry, and international 
                partners.
            (4) Project requirements.--
                    (A) Research and development.--
                            (i) In general.--The project shall include 
                        planning, research and development, design, and 
                        construction of an advanced, next-generation, 
                        nuclear energy system suitable for enabling 
                        further research and development on advanced 
                        reactor technologies and alternative approaches 
                        for reactor-based generation of hydrogen.
                            (ii) Reactor test capabilities at inl.--The 
                        project shall utilize, where appropriate, 
                        extensive reactor test capabilities resident at 
                        INL.
                            (iii) Alternatives.--The project shall be 
                        designed to explore technical, environmental, 
                        and economic feasibility of alternative 
                        approaches for reactor-based hydrogen 
                        production.
                            (iv) Industrial lead.--The industrial lead 
                        for the project shall be a company incorporated 
                        in the United States.
                    (B) International collaboration.--
                            (i) In general.--The Secretary shall seek 
                        international cooperation, participation, and 
                        financial contribution in this project.
                            (ii) Assistance from international 
                        partners.--The Secretary may contract for 
                        assistance from specialists or facilities from 
                        member countries of the Generation IV 
                        International Forum, the Russian Federation, or 
                        other international partners where such 
                        specialists or facilities provide access to 
                        cost-effective and relevant skills or test 
                        capabilities.
                            (iii) Generation iv international forum.--
                        International activities shall be coordinated 
                        with the Generation IV International Forum.
                            (iv) Generation iv nuclear energy systems 
                        program.--The Secretary may combine this 
                        project with the Generation IV Nuclear Energy 
                        Systems Program.
                    (C) Demonstration.--The overall project, which may 
                involve demonstration of selected project objectives in 
                a partner nation, must demonstrate both electricity and 
                hydrogen production and may provide flexibility, where 
                technically and economically feasible in the design and 
                construction, to enable tests of alternative reactor 
                core and cooling configurations.
                    (D) Partnerships.--The Secretary shall establish 
                cost-shared partnerships with domestic industry or 
                international participants for the research, 
                development, design, construction, and operation of the 
                research facility, and preference in determining the 
                final project structure shall be given to an overall 
                project which retains United States leadership while 
                maximizing cost sharing opportunities and minimizing 
                Federal funding responsibilities.
                    (E) Target date.--The Secretary shall select 
                technologies and develop the project to provide initial 
                testing of either hydrogen production or electricity 
                generation by 2011, or provide a report to Congress 
                explaining why this date is not feasible.
                    (F) Waiver of construction timelines.--The 
                Secretary is authorized to conduct the Advanced Reactor 
                Hydrogen Cogeneration Project without the constraints 
                of DOE Order 413.3, relating to program and project 
                management for the acquisition of capital assets, as 
                necessary to meet the specified operational date.
                    (G) Competition.--The Secretary may fund up to 2 
                teams for up to 1 year to develop detailed proposals 
                for competitive evaluation and selection of a single 
                proposal and concept for further progress. The 
                Secretary shall define the format of the competitive 
                evaluation of proposals.
                    (H) Use of facilities.--Research facilities in 
                industry, national laboratories, or universities either 
                within the United States or with cooperating 
                international partners may be used to develop the 
                enabling technologies for the research facility. 
                Utilization of domestic university-based facilities 
                shall be encouraged to provide educational 
                opportunities for student development.
                    (I) Role of nuclear regulatory commission.--
                            (i) In general.--The Nuclear Regulatory 
                        Commission shall have licensing and regulatory 
                        authority for any reactor authorized under this 
                        subsection, pursuant to section 202 of the 
                        Energy Reorganization Act of 1974 (42 U.S.C. 
                        5842).
                            (ii) Risk-based criteria.--The Secretary 
                        shall seek active participation of the Nuclear 
                        Regulatory Commission throughout the project to 
                        develop risk-based criteria for any future 
                        commercial development of a similar reactor 
                        architecture.
                    (J) Report.--The Secretary shall develop and 
                transmit to Congress a comprehensive project plan not 
                later than 3 months after the date of enactment of this 
                Act. The project plan shall be updated annually with 
                each annual budget submission.
    (b) Advanced Nuclear Reactor Technologies.--The Secretary shall--
            (1) prepare a detailed roadmap for carrying out the 
        provisions in this subtitle related to advanced nuclear reactor 
        technologies and for implementing the recommendations related 
        to advanced nuclear reactor technologies that are included in 
        the report transmitted under subsection (d); and
            (2) provide for the establishment of 5 projects in 
        geographic areas that are regionally and climatically diverse 
        to demonstrate the commercial production of hydrogen at 
        existing nuclear power plants, including one demonstration 
        project at a national laboratory or institution of higher 
        education using an advanced gas-cooled reactor.
    (c) Collocation With Hydrogen Production Facility.--Section 103 of 
the Atomic Energy Act of 1954 (42 U.S.C. 2011) is amended by adding at 
the end the following new subsection:
    ``g. The Commission shall give priority to the licensing of a 
utilization facility that is collocated with a hydrogen production 
facility. The Commission shall issue a final decision approving or 
disapproving the issuance of a license to construct and operate a 
utilization facility not later than the expiration of 3 years after the 
date of the submission of such application, if the application 
references a Commission-certified design and an early site permit, 
unless the Commission determines that the applicant has proposed 
material and substantial changes to the design or the site design 
parameters.''.
    (d) 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 subsection 
(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 nuclear 
reactor energy technologies for the production of hydrogen.
    (e) Authorization of Appropriations.--For the purpose of supporting 
research programs related to the development of advanced nuclear 
reactor technologies under this section, there are authorized to be 
appropriated to the Secretary--
            (1) $65,000,000 for fiscal year 2006;
            (2) $74,750,000 for fiscal year 2007;
            (3) $85,962,500 for fiscal year 2008;
            (4) $98,856,875 for fiscal year 2009;
            (5) $113,685,406 for fiscal year 2010;
            (6) $130,738,217 for fiscal year 2011;
            (7) $150,348,950 for fiscal year 2012;
            (8) $172,901,292 for fiscal year 2013;
            (9) $198,836,486 for fiscal year 2014; and
            (10) $228,661,959 for fiscal year 2015.

SEC. 652. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``advanced nuclear reactor technologies'' 
        means--
                    (A) technologies related to advanced light water 
                reactors that may be commercially available in the 
                near-term, including mid-sized reactors with passive 
                safety features, for the generation of electric power 
                from nuclear fission and the production of hydrogen; 
                and
                    (B) technologies related to other nuclear reactors 
                that may require prototype demonstration prior to 
                availability in the mid-term or long-term, including 
                high-temperature, gas-cooled reactors and liquid metal 
                reactors, for the generation of electric power from 
                nuclear fission and the production of hydrogen;
            (2) the term ``institution of higher education'' has the 
        meaning given to that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)); and
            (3) the term ``Secretary'' means the Secretary of Energy.

                      Subtitle D--Nuclear Security

SEC. 661. NUCLEAR FACILITY THREATS.

    (a) Study.--The President, in consultation with the Nuclear 
Regulatory Commission (referred to in this subtitle as the 
``Commission'') and other appropriate Federal, State, and local 
agencies and private entities, shall conduct a study to identify the 
types of threats that pose an appreciable risk to the security of the 
various classes of facilities licensed by the Commission under the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study shall 
take into account, 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.
    (b) Summary and Classification Report.--Not later than 180 days 
after the date of the enactment of this Act, the President shall 
transmit to Congress and the Commission a report--
            (1) summarizing the types of threats identified under 
        subsection (a); and
            (2) classifying each type of threat identified under 
        subsection (a), in accordance with existing laws and 
        regulations, as either--
                    (A) involving attacks and destructive acts, 
                including sabotage, directed against the facility by an 
                enemy of the United States, whether a foreign 
                government or other person, or otherwise falling under 
                the responsibilities of the Federal Government; or
                    (B) involving the type of risks that Commission 
                licensees should be responsible for guarding against.
    (c) Federal Action Report.--Not later than 90 days after the date 
on which a report is transmitted under subsection (b), the President 
shall transmit to Congress a report on actions taken, or to be taken, 
to address the types of threats identified under subsection (b)(2)(A), 
including identification of the Federal, State, and local agencies 
responsible for carrying out the obligations and authorities of the 
United States. Such report may include a classified annex, as 
appropriate.
    (d) Regulations.--Not later than 180 days after the date on which a 
report is transmitted under subsection (b), the Commission may revise, 
by rule, the design basis threats issued before the date of enactment 
of this section as the Commission considers appropriate based on the 
summary and classification report.
    (e) Physical Security Program.--The Commission shall establish an 
operational safeguards response evaluation program that ensures that 
the physical protection capability and operational safeguards response 
for sensitive nuclear facilities, as determined by the Commission 
consistent with the protection of public health and the common defense 
and security, shall be tested periodically through Commission approved 
or designed, observed, and evaluated force-on-force exercises to 
determine whether the ability to defeat the design basis threat is 
being maintained. For purposes of this subsection, the term ``sensitive 
nuclear facilities'' includes at a minimum commercial nuclear power 
plants and category I fuel cycle facilities.
    (f) Control of Information.--Notwithstanding any other provision of 
law, the Commission may undertake any rulemaking under this subtitle in 
a manner that will fully protect safeguards and classified national 
security information.
    (g) Federal Security Coordinators.--
            (1) Regional offices.--Not later than 18 months after the 
        date of enactment of this Act, the Commission shall assign a 
        Federal security coordinator, under the employment of the 
        Commission, to each region of the Commission.
            (2) Responsibilities.--The Federal security coordinator 
        shall be responsible for--
                    (A) 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;
                    (B) ensuring that such classes of facilities as the 
                Commission determines to be appropriate maintain 
                security consistent with the security plan in 
                accordance with the appropriate threat level; and
                    (C) 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.
    (h) Training Program.--The President shall establish a program to 
provide technical assistance and training to Federal agencies, the 
National Guard, and State and local law enforcement and emergency 
response agencies in responding to threats against a designated nuclear 
facility.

SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY RECORD CHECKS.

    (a) In General.--Subsection a. of section 149 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2169(a)) is amended--
            (1) by striking ``a. The Nuclear'' and all that follows 
        through ``section 147.'' and inserting the following:
    ``a. In General.--
            ``(1) Requirements.--
                    ``(A) In general.--The Commission shall require 
                each individual or entity--
                            ``(i) that is licensed or certified to 
                        engage in an activity subject to regulation by 
                        the Commission;
                            ``(ii) that has filed an application for a 
                        license or certificate to engage in an activity 
                        subject to regulation by the Commission; or
                            ``(iii) that has notified the Commission, 
                        in writing, of an intent to file an application 
                        for licensing, certification, permitting, or 
                        approval of a product or activity subject to 
                        regulation by the Commission,
                to fingerprint each individual described in 
                subparagraph (B) before the individual is permitted 
                unescorted access or access, whichever is applicable, 
                as described in subparagraph (B).
                    ``(B) Individuals required to be fingerprinted.--
                The Commission shall require to be fingerprinted each 
                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.'';
            (2) by striking ``All fingerprints obtained by a licensee 
        or applicant as required in the preceding sentence'' and 
        inserting the following:
            ``(2) Submission to the attorney general.--All fingerprints 
        obtained by an individual or entity as required in paragraph 
        (1)'';
            (3) 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) Costs.--The costs of any identification and records 
        check conducted pursuant to paragraph (1) shall be paid by the 
        individual or entity required to conduct the fingerprinting 
        under paragraph (1)(A).''; and
            (4) 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) Provision to individual or entity required to conduct 
        fingerprinting.--Notwithstanding any other provision of law, 
        the Attorney General may provide all the results of the search 
        to the Commission, and, in accordance with regulations 
        prescribed under this section, the Commission may provide such 
        results to the individual or entity required to conduct the 
        fingerprinting under paragraph (1)(A).''.
    (b) Administration.--Subsection c. of section 149 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2169(c)) is amended--
            (1) by striking ``, subject to public notice and comment, 
        regulations--'' and inserting ``requirements--''; and
            (2) by striking, in paragraph (2)(B), ``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)''.
    (c) Biometric Methods.--Subsection d. of section 149 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2169(d)) is redesignated as subsection 
e., and the following is inserted after subsection c.:
    ``d. Use of Other Biometric Methods.--The Commission may satisfy 
any requirement for a person to conduct fingerprinting under this 
section using any other biometric method for identification approved 
for use by the Attorney General, after the Commission has approved the 
alternative method by rule.''.

SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF LICENSEES AND 
              CERTIFICATE HOLDERS OF THE COMMISSION.

     Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is 
amended by adding at the end the following subsection:
            ``(z)(1) notwithstanding section 922(o), (v), and (w) of 
        title 18, United States Code, or any similar provision of any 
        State law or any similar rule or regulation of a State or any 
        political subdivision of a State prohibiting the transfer or 
        possession of a handgun, a rifle or shotgun, a short-barreled 
        shotgun, a short-barreled rifle, a machinegun, a semiautomatic 
        assault weapon, ammunition for the foregoing, or a large 
        capacity ammunition feeding device, authorize security 
        personnel of licensees and certificate holders of the 
        Commission (including employees of contractors of licensees and 
        certificate holders) to receive, possess, transport, import, 
        and use 1 or more of those weapons, ammunition, or devices, if 
        the Commission determines that--
                    ``(A) such authorization is necessary to the 
                discharge of the security personnel's official duties; 
                and
                    ``(B) the security personnel--
                            ``(i) are not otherwise prohibited from 
                        possessing or receiving a firearm under Federal 
                        or State laws pertaining to possession of 
                        firearms by certain categories of persons;
                            ``(ii) have successfully completed 
                        requirements established through guidelines 
                        implementing this subsection for training in 
                        use of firearms and tactical maneuvers;
                            ``(iii) are engaged in the protection of--
                                    ``(I) facilities owned or operated 
                                by a Commission licensee or certificate 
                                holder that are designated by the 
                                Commission; or
                                    ``(II) radioactive material or 
                                other property owned or possessed by a 
                                person that is a licensee or 
                                certificate holder of the Commission, 
                                or that is being transported to or from 
                                a facility owned or operated by such a 
                                licensee or certificate holder, and 
                                that has been determined by the 
                                Commission to be of significance to the 
                                common defense and security or public 
                                health and safety; and
                            ``(iv) are discharging their official 
                        duties.
            ``(2) Such receipt, possession, transportation, 
        importation, or use shall be subject to--
                    ``(A) chapter 44 of title 18, United States Code, 
                except for section 922(a)(4), (o), (v), and (w);
                    ``(B) chapter 53 of title 26, United States Code, 
                except for section 5844; and
                    ``(C) a background check by the Attorney General, 
                based on fingerprints and including a check of the 
                system established under section 103(b) of the Brady 
                Handgun Violence Prevention Act (18 U.S.C. 922 note) to 
                determine whether the person applying for the authority 
                is prohibited from possessing or receiving a firearm 
                under Federal or State law.
            ``(3) This subsection shall become effective upon the 
        issuance of guidelines by the Commission, with the approval of 
        the Attorney General, to govern the implementation of this 
        subsection.
            ``(4) In this subsection, the terms `handgun', `rifle', 
        `shotgun', `firearm', `ammunition', `machinegun', 
        `semiautomatic assault weapon', `large capacity ammunition 
        feeding device', `short-barreled shotgun', and `short-barreled 
        rifle' shall have the meanings given those terms in section 
        921(a) of title 18, United States Code.''.

SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

     Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
2278a(a)) is amended in the first sentence by inserting ``or subject to 
the licensing authority of the Commission or to certification by the 
Commission under this Act or any other Act'' before the period at the 
end.

SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

    (a) In General.--Section 236 a. 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 ``storage, treatment, 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 Nuclear Regulatory Commission that, before 
        the date of the offense, the Nuclear Regulatory Commission 
        determines, by order or regulation published in the Federal 
        Register, is of significance to the public health and safety or 
        to common defense and security,''.
    (b) Penalties.--Section 236 of the Atomic Energy Act of 1954 (42 
U.S.C. 2284) is amended by striking ``$10,000 or imprisoned for not 
more than 20 years, or both, and, if death results to any person, shall 
be imprisoned for any term of years or for life'' both places it 
appears and inserting ``$1,000,000 or imprisoned for up to life without 
parole''.

SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.

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

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

    ``a. The Nuclear Regulatory Commission shall establish a system to 
ensure that materials described in subsection b., when transferred or 
received in the United States by any party pursuant to an import or 
export license issued pursuant to this Act, are accompanied by a 
manifest describing the type and amount of materials being transferred 
or received. Each individual receiving or accompanying the transfer of 
such materials shall be subject to a security background check 
conducted by appropriate Federal entities.
    ``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 170C 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) Table of Sections Amendment.--The table of sections for chapter 
14 of the Atomic Energy Act of 1954 is amended by adding at the end the 
following new item:

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

SEC. 667. 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.

SEC. 668. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary to carry out this subtitle and the amendments made by 
this subtitle.
    (b) Nuclear Regulatory Commission User Fees and Annual Charges.--
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.''.
    (c) Repeal.--Section 7601 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.

                     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. 704. 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. 705. LEASE CONDENSATES.

    (a) Lease Condensate Fuels.--Section 301 of the Energy Policy Act 
of 1992 (42 U.S.C. 13211) is amended--
            (1) in paragraph (2), by inserting ``mixtures containing 50 
        percent or more by volume of lease condensate or fuels 
        extracted from lease condensate;'' after ``liquefied petroleum 
        gas;'';
            (2) in paragraph (13), by striking ``and'' at the end;
            (3) in paragraph (14)--
                    (A) by inserting ``mixtures containing 50 percent 
                or more by volume of lease condensate or fuels 
                extracted from lease condensate,'' after ``liquefied 
                petroleum gas,''; and
                    (B) by striking the period and inserting ``; and'';
            (4) by adding at the end the following:
            ``(15) the term `lease condensate' means a mixture, 
        primarily of pentanes and heavier hydrocarbons, that is 
        recovered as a liquid from natural gas in lease separation 
        facilities.''.
    (b) Lease Condensate Use Credits.--
            (1) In general.--Title III of the Energy Policy Act of 1992 
        (42 U.S.C. 13211 et seq.) is amended by adding at the end the 
        following:

``SEC. 313. LEASE CONDENSATE USE CREDITS.

    ``(a) In General.--Subject to subsection (d), the Secretary shall 
allocate 1 credit under this section to a fleet or covered person for 
each qualifying volume of the lease condensate component of fuel 
containing at least 50 percent lease condensate, or fuels extracted 
from lease condensate, after the date of enactment of this section for 
use by the fleet or covered person in vehicles owned or operated by the 
fleet or covered person that weigh more than 8,500 pounds gross vehicle 
weight rating.
    ``(b) Requirements.--A credit allocated under this section--
            ``(1) shall be subject to the same exceptions, authority, 
        documentation, and use of credits that are specified for 
        qualifying volumes of biodiesel in section 312; and
            ``(2) shall not be considered a credit under section 508.
    ``(c) Regulation.--
            ``(1) In general.--Subject to subsection (d), not later 
        than January 1, 2006, after the collection of appropriate 
        information and data that consider usage options, uses in other 
        industries, products, or processes, potential volume 
        capacities, costs, air emissions, and fuel efficiencies, the 
        Secretary shall issue a regulation establishing requirements 
        and procedures for the implementation of this section.
            ``(2) Qualifying volume.--The regulation shall include a 
        determination of an appropriate qualifying volume for lease 
        condensate, except that in no case shall the Secretary 
        determine that the qualifying volume for lease condensate is 
        less than 1,125 gallons.
    ``(d) Applicability.--This section applies unless the Secretary 
finds that the use of lease condensate as an alternative fuel would 
adversely affect public health or safety or ambient air quality or the 
environment.''.
            (2) 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 of the items relating to title III 
        the following:

``Sec. 313. Lease condensate use credits.''.
    (c) 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''.

SEC. 706. 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 of Energy 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. 707. 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''.

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

                        PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

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

SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION PROGRAM.

    (a) Establishment.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary, shall establish 
a program for awarding grants on a competitive basis to entities for 
the installation of hybrid retrofit and electric conversion 
technologies for combustion engine vehicles.
    (b) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to a local or State governmental entity;
            (2) to a for-profit or nonprofit corporation or other 
        person; or
            (3) to 1 or more contracting entities that service 
        combustion engine vehicles for an entity described in paragraph 
        (1) or (2).
    (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 per proposal or per vehicle; or
                    (B) involve the use of emissions control retrofit 
                or conversion technology.
    (d) Conditions of Grant.--A grant shall be provided under this 
section on the conditions that--
            (1) combustion engine vehicles on which hybrid retrofit or 
        conversion technology are to be demonstrated--
                    (A) with the retrofit or conversion technology 
                applied will achieve low-emission standards consistent 
                with the Voluntary National Low Emission Vehicle 
                Program for Light-Duty Vehicles and Light-Duty Trucks 
                (40 CFR Part 86) without model year restrictions; and
                    (B) will be used for a minimum of 3 years;
            (2) grant funds will be used for the purchase of hybrid 
        retrofit or conversion technology, including State taxes and 
        contract fees; and
            (3) grant recipients will provide at least 15 percent of 
        the total cost of the retrofit or conversion, including the 
        purchase of hybrid retrofit or conversion technology and all 
        necessary labor for installation of the retrofit or conversion.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the Federal 
Register procedures to verify--
            (1) the hybrid retrofit or conversion technology to be 
        demonstrated; and
            (2) 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--
            (1) $20,000,000 for fiscal year 2005;
            (2) $35,000,000 for fiscal year 2006;
            (3) $45,000,000 for fiscal year 2007; and
            (4) such sums as are necessary for each of fiscal years 
        2008 and 2009.

                       PART 2--ADVANCED VEHICLES

SEC. 721. DEFINITIONS.

    In this part:
            (1) Alternative fueled vehicle.--
                    (A) In general.--The term ``alternative fueled 
                vehicle'' means a vehicle propelled solely on an 
                alternative fuel (as defined in section 301 of the 
                Energy Policy Act of 1992 (42 U.S.C. 13211)).
                    (B) Exclusion.--The term ``alternative fueled 
                vehicle'' does not include a vehicle that the Secretary 
                determines, by regulation, does not yield substantial 
                environmental benefits over a vehicle operating solely 
                on gasoline or diesel derived from fossil fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means a vehicle propelled by an electric motor powered by a 
        fuel cell system that converts chemical energy into electricity 
        by combining oxygen (from air) with hydrogen fuel that is 
        stored on the vehicle or is produced onboard by reformation of 
        a hydrocarbon fuel. Such fuel cell system may or may not 
        include the use of auxiliary energy storage systems to enhance 
        vehicle performance.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means a 
        medium or heavy duty vehicle propelled by an internal 
        combustion engine or heat engine using any combustible fuel and 
        an onboard rechargeable energy storage device.
            (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle that--
                    (A) meets the definition of a low-speed vehicle (as 
                defined in part 571 of title 49, Code of Federal 
                Regulations);
                    (B) meets the definition of a zero-emission vehicle 
                (as defined in section 86.1702-99 of title 40, Code of 
                Federal Regulations);
                    (C) meets the requirements of Federal Motor Vehicle 
                Safety Standard No. 500; and
                    (D) has a maximum speed of not greater than 25 
                miles per hour.
            (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 722.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (7) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in any of 
        model years 2004 through 2006 powered by a heavy-duty diesel 
        engine that--
                    (A) is fueled by diesel fuel that contains sulfur 
                at not more than 15 parts per million; and
                    (B) emits not more than the lesser of--
                            (i) for vehicles manufactured in model 
                        years 2004 through 2006, 2.5 grams per brake 
                        horsepower-hour of nonmethane hydrocarbons and 
                        oxides of nitrogen and .01 grams per brake 
                        horsepower-hour of particulate matter; or
                            (ii) the quantity of emissions of 
                        nonmethane hydrocarbons, oxides of nitrogen, 
                        and particulate matter of the best-performing 
                        technology of ultra-low sulfur diesel vehicles 
                        of the same class and application that are 
                        commercially available.

SEC. 722. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive grant pilot 
program, to be administered through the Clean Cities Program of the 
Department of Energy, to provide not more than 15 geographically 
dispersed project grants to State governments, local governments, or 
metropolitan transportation authorities to carry out a project or 
projects for the purposes described in subsection (b).
    (b) Grant Purposes.--A grant under this section may be used for the 
following purposes:
            (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including--
                    (A) passenger vehicles (including neighborhood 
                electric vehicles); and
                    (B) motorized 2-wheel bicycles, scooters, or other 
                vehicles for use by law enforcement personnel or other 
                State or local government or metropolitan 
                transportation authority employees.
            (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or services; and
                    (C) ground support vehicles at public airports 
                (including vehicles to carry baggage or push or pull 
                airplanes toward or away from terminal gates).
            (3) The acquisition of ultra-low sulfur diesel vehicles.
            (4) Installation or acquisition of infrastructure necessary 
        to directly support an alternative fueled vehicle, fuel cell 
        vehicle, or hybrid vehicle project funded by the grant, 
        including fueling and other support equipment.
            (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
    (c) Applications.--
            (1) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements for applying for grants under the pilot 
                program.
                    (B) Minimum requirements.--At a minimum, the 
                Secretary shall require that an application for a 
                grant--
                            (i) be submitted by the head of a State or 
                        local government or a metropolitan 
                        transportation authority, or any combination 
                        thereof, and a registered participant in the 
                        Clean Cities Program of the Department of 
                        Energy; and
                            (ii) include--
                                    (I) a description of the project 
                                proposed in the application, including 
                                how the project meets the requirements 
                                of this 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 $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
            (2) Cost sharing.--The Secretary shall not provide more 
        than 50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
            (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
            (4) Deployment and distribution.--The Secretary shall seek 
        to the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
            (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
        interested parties, including other applicants that submitted 
        applications.
    (f) Schedule.--
            (1) Publication.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due not later 
        than 180 days after the date of publication of the notice.
            (2) Selection.--Not later than 180 days after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer reviewed proposal, all applications 
        for projects to be awarded a grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less than 20 
nor more than 25 percent of the grant funding made available under this 
section for the acquisition of ultra-low sulfur diesel vehicles.

SEC. 723. 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. 724. 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 of Energy, in consultation with the 
Secretary of Transportation, shall establish a transit bus 
demonstration program to make competitive, merit-based awards for 5-
year projects to demonstrate not more than 25 fuel cell transit buses 
(and necessary infrastructure) in 5 geographically dispersed 
localities.
    (b) Preference.--In selecting projects under this section, the 
Secretary of Energy shall give preference to projects that are most 
likely to mitigate congestion and improve air quality.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$10,000,000 for each of fiscal years 2006 through 2010.

                     Subtitle C--Clean School Buses

SEC. 741. DEFINITIONS.

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

SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES WITH CLEAN 
              SCHOOL BUSES.

    (a) Establishment.--The Administrator, in consultation with the 
Secretary and other appropriate Federal departments and agencies, shall 
establish a program for awarding grants on a competitive basis to 
eligible entities for the replacement of existing school buses 
manufactured before model year 1991 with alternative fuel school buses 
and ultra-low sulfur diesel fuel school buses.
    (b) Requirements.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall establish and 
        publish in the Federal Register grant requirements on 
        eligibility for assistance, and on implementation of the 
        program established under subsection (a), including 
        instructions for the submission of grant applications and 
        certification requirements to ensure compliance with this 
        subtitle.
            (2) Application deadlines.--The requirements established 
        under paragraph (1) shall require submission of grant 
        applications not later than--
                    (A) in the case of the first year of program 
                implementation, the date that is 180 days after the 
                publication of the requirements in the Federal 
                Register; and
                    (B) in the case of each subsequent year, June 1 of 
                the year.
    (c) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to 1 or more local or State governmental entities 
        responsible for providing school bus service to 1 or more 
        public school systems or responsible for the purchase of school 
        buses;
            (2) to 1 or more contracting entities that provide school 
        bus service to 1 or more public school systems, if the grant 
        application is submitted jointly with the 1 or more school 
        systems to be served by the buses, except that the application 
        may provide that buses purchased using funds awarded shall be 
        owned, operated, and maintained exclusively by the 1 or more 
        contracting entities; or
            (3) to a nonprofit school transportation association 
        representing private contracting entities, if the association 
        has notified and received approval from the 1 or more school 
        systems to be served by the buses.
    (d) Award Deadlines.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator shall award a grant made to a qualified applicant 
        for a fiscal year--
                    (A) in the case of the first fiscal year of program 
                implementation, not later than the date that is 90 days 
                after the application deadline established under 
                subsection (b)(2); and
                    (B) in the case of each subsequent fiscal year, not 
                later than August 1 of the fiscal year.
            (2) Insufficient number of qualified grant applications.--
        If the Administrator does not receive a sufficient number of 
        qualified grant applications to meet the requirements of 
        subsection (i)(1) for a fiscal year, the Administrator shall 
        award a grant made to a qualified applicant under subsection 
        (i)(2) not later than September 30 of the fiscal year.
    (e) Types of Grants.--
            (1) In general.--A grant under this section shall be used 
        for the replacement of school buses manufactured before model 
        year 1991 with alternative fuel school buses and ultra-low 
        sulfur diesel fuel school buses.
            (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
            (3) Priority of grant applications.--The Administrator 
        shall give priority to applicants that propose to replace 
        school buses manufactured before model year 1977.
    (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
            (1) School bus fleet.--All buses acquired with funds 
        provided under the grant shall be operated as part of the 
        school bus fleet for which the grant was made for a minimum of 
        5 years.
            (2) Use of funds.--Funds provided under the grant may only 
        be used--
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school buses or 
                ultra-low sulfur diesel fuel school buses, including 
                State taxes and contract fees associated with the 
                acquisition of such buses; and
                    (B) to provide--
                            (i) up to 20 percent of the price of the 
                        alternative fuel school buses acquired, for 
                        necessary alternative fuel infrastructure if 
                        the infrastructure will only be available to 
                        the grant recipient; and
                            (ii) up to 25 percent of the price of the 
                        alternative fuel school buses acquired, for 
                        necessary alternative fuel infrastructure if 
                        the infrastructure will be available to the 
                        grant recipient and to other bus fleets.
            (3) Grant recipient funds.--The grant recipient shall be 
        required to provide at least--
                    (A) in the case of a grant recipient described in 
                paragraph (1) or (3) of subsection (c), the lesser of--
                            (i) an amount equal to 15 percent of the 
                        total cost of each bus received; or
                            (ii) $15,000 per bus; and
                    (B) in the case of a grant recipient described in 
                subsection (c)(2), the lesser of--
                            (i) an amount equal to 20 percent of the 
                        total cost of each bus received; or
                            (ii) $20,000 per bus.
            (4) Ultra-low sulfur diesel fuel.--In the case of a grant 
        recipient receiving a grant for ultra-low sulfur diesel fuel 
        school buses, the grant recipient shall be required to provide 
        documentation to the satisfaction of the Administrator that 
        diesel fuel containing sulfur at not more than 15 parts per 
        million is available for carrying out the purposes of the 
        grant, and a commitment by the applicant to use such fuel in 
        carrying out the purposes of the grant.
            (5) Timing.--All alternative fuel school buses, ultra-low 
        sulfur diesel fuel school buses, or alternative fuel 
        infrastructure acquired under a grant awarded under this 
        section shall be purchased and placed in service as soon as 
        practicable.
    (g) Buses.--
            (1) In general.--Except as provided in paragraph (2), 
        funding under a grant made under this section for the 
        acquisition of new alternative fuel school buses or ultra-low 
        sulfur diesel fuel school buses shall only be used to acquire 
        school buses--
                    (A) with a gross vehicle weight of greater than 
                14,000 pounds;
                    (B) that are powered by a heavy duty engine;
                    (C) in the case of alternative fuel school buses 
                manufactured in model years 2004 through 2006, that 
                emit not more than 1.8 grams per brake horsepower-hour 
                of nonmethane hydrocarbons and oxides of nitrogen and 
                .01 grams per brake horsepower-hour of particulate 
                matter; and
                    (D) in the case of ultra-low sulfur diesel fuel 
                school buses manufactured in model years 2004 through 
                2006, that emit not more than 2.5 grams per brake 
                horsepower-hour of nonmethane hydrocarbons and oxides 
                of nitrogen and .01 grams per brake horsepower-hour of 
                particulate matter.
            (2) Limitations.--A bus shall not be acquired under this 
        section that emits nonmethane hydrocarbons, oxides of nitrogen, 
        or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel fuel school buses commercially available at the time the 
        grant is made.
    (h) Deployment and Distribution.--The Administrator shall--
            (1) seek, to the maximum extent practicable, to achieve 
        nationwide deployment of alternative fuel school buses and 
        ultra-low sulfur diesel fuel school buses through the program 
        under this section; and
            (2) ensure a broad geographic distribution of grant awards, 
        with a goal of no State receiving more than 10 percent of the 
        grant funding made available under this section for a fiscal 
        year.
    (i) Allocation of Funds.--
            (1) In general.--Subject to paragraph (2), of the amount of 
        grant funding made available to carry out this section for any 
        fiscal year, the Administrator shall use--
                    (A) 70 percent for the acquisition of alternative 
                fuel school buses or supporting infrastructure; and
                    (B) 30 percent for the acquisition of ultra-low 
                sulfur diesel fuel school buses.
            (2) Insufficient number of qualified grant applications.--
        After the first fiscal year in which this program is in effect, 
        if the Administrator does not receive a sufficient number of 
        qualified grant applications to meet the requirements of 
        subparagraph (A) or (B) of paragraph (1) for a fiscal year, 
        effective beginning on August 1 of the fiscal year, the 
        Administrator shall make the remaining funds available to other 
        qualified grant applicants under this section.
    (j) Reduction of School Bus Idling.--Each local educational agency 
(as defined in section 9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
is encouraged to develop a policy, consistent with the health, safety, 
and welfare of students and the proper operation and maintenance of 
school buses, to reduce the incidence of unnecessary school bus idling 
at schools when picking up and unloading students.
    (k) Annual Report.--
            (1) In general.--Not later than January 31 of each year, 
        the Administrator shall transmit to Congress a report 
        evaluating implementation of the programs under this section 
        and section 743.
            (2) Components.--The reports shall include a description 
        of--
                    (A) the total number of grant applications 
                received;
                    (B) the number and types of alternative fuel school 
                buses, ultra-low sulfur diesel fuel school buses, and 
                retrofitted buses requested in grant applications;
                    (C) grants awarded and the criteria used to select 
                the grant recipients;
                    (D) certified engine emission levels of all buses 
                purchased or retrofitted under the programs under this 
                section and section 743;
                    (E) an evaluation of the in-use emission level of 
                buses purchased or retrofitted under the programs under 
                this section and section 743; and
                    (F) any other information the Administrator 
                considers appropriate.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section, to remain 
available until expended--
            (1) $45,000,000 for fiscal year 2005;
            (2) $65,000,000 for fiscal year 2006;
            (3) $90,000,000 for fiscal year 2007; and
            (4) such sums as are necessary for each of fiscal years 
        2008 and 2009.

SEC. 743. DIESEL RETROFIT PROGRAM.

    (a) Establishment.--The Administrator, in consultation with the 
Secretary, shall establish a program for awarding grants on a 
competitive basis to entities for the installation of retrofit 
technologies for diesel school buses.
    (b) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to a local or State governmental entity responsible for 
        providing school bus service to 1 or more public school 
        systems;
            (2) to 1 or more contracting entities that provide school 
        bus service to 1 or more public school systems, if the grant 
        application is submitted jointly with the 1 or more school 
        systems that the buses will serve, except that the application 
        may provide that buses purchased using funds awarded shall be 
        owned, operated, and maintained exclusively by the 1 or more 
        contracting entities; or
            (3) to a nonprofit school transportation association 
        representing private contracting entities, if the association 
        has notified and received approval from the 1 or more school 
        systems to be served by the buses.
    (c) Awards.--
            (1) In general.--The Administrator shall seek, to the 
        maximum extent practicable, to ensure a broad geographic 
        distribution of grants under this section.
            (2) Preferences.--In making awards of grants under this 
        section, the Administrator shall give preference to proposals 
        that--
                    (A) will achieve the greatest reductions in 
                emissions of nonmethane hydrocarbons, oxides of 
                nitrogen, or particulate matter per proposal or per 
                bus; or
                    (B) involve the use of emissions control retrofit 
                technology on diesel school buses that operate solely 
                on ultra-low sulfur diesel fuel.
    (d) Conditions of Grant.--A grant shall be provided under this 
section on the conditions that--
            (1) buses on which retrofit emissions-control technology 
        are to be demonstrated--
                    (A) will operate on ultra-low sulfur diesel fuel 
                where such fuel is reasonably available or required for 
                sale by State or local law or regulation;
                    (B) were manufactured in model year 1991 or later; 
                and
                    (C) will be used for the transportation of school 
                children to and from school for a minimum of 5 years;
            (2) grant funds will be used for the purchase of emission 
        control retrofit technology, including State taxes and contract 
        fees; and
            (3) grant recipients will provide at least 15 percent of 
        the total cost of the retrofit, including the purchase of 
        emission control retrofit technology and all necessary labor 
        for installation of the retrofit.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the Federal 
Register procedures to verify--
            (1) the retrofit emissions-control technology to be 
        demonstrated;
            (2) that buses powered by ultra-low sulfur diesel fuel on 
        which retrofit emissions-control technology are to be 
        demonstrated will operate on diesel fuel containing not more 
        than 15 parts per million of sulfur; and
            (3) that grants are administered in accordance with this 
        section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section, to remain 
available until expended--
            (1) $20,000,000 for fiscal year 2005;
            (2) $35,000,000 for fiscal year 2006;
            (3) $45,000,000 for fiscal year 2007; and
            (4) such sums as are necessary for each of fiscal years 
        2008 and 2009.

SEC. 744. 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 2005 through 2007.

                       Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary of Energy shall, in cooperation 
with the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency, establish a cost-shared, public-
private research partnership involving the Federal Government, railroad 
carriers, locomotive manufacturers and equipment suppliers, and the 
Association of American Railroads, to develop and demonstrate railroad 
locomotive technologies that increase fuel economy, reduce emissions, 
and lower costs of operation.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section--
            (1) $25,000,000 for fiscal year 2006;
            (2) $35,000,000 for fiscal year 2007; and
            (3) $50,000,000 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
            (6) 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; and
            (2) ways to promote fuel conservation measures for aviation 
        to--
                    (A) enhance fuel efficiency; and
                    (B) reduce 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 the emissions on human 
                health.

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 of Energy 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. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

    (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, and communications, and is capable of providing 
        verifiable and auditable evidence of use of those services, to 
        a heavy-duty vehicle and any occupants of the heavy-duty 
        vehicle without relying on components mounted onboard the 
        heavy-duty vehicle for delivery of those services.
            (3) Auxiliary power unit.--The term ``auxiliary power 
        unit'' means an integrated system that--
                    (A) provides heat, air conditioning, engine 
                warming, and electricity to the factory-installed 
                components on a heavy-duty vehicle as if the main drive 
                engine of the heavy-duty vehicle were running; and
                    (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 
                12,500 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 device or system of 
        devices that--
                    (A) is used to reduce long-duration idling of a 
                heavy-duty vehicle; and
                    (B) allows for the main drive engine or auxiliary 
                refrigeration engine of a heavy-duty vehicle to be shut 
                down.
            (6) Long-duration idling.--
                    (A) In general.--The term ``long-duration idling'' 
                means the operation of a main drive engine or auxiliary 
                refrigeration engine of a heavy-duty vehicle, for a 
                period greater than 15 consecutive minutes, at a time 
                at which the main drive engine is not engaged in gear.
                    (B) Exclusions.--The term ``long-duration idling'' 
                does not include the operation of a main drive engine 
                or auxiliary refrigeration engine of a heavy-duty 
                vehicle during a routine stoppage associated with 
                traffic movement or congestion.
    (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 1 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 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 establish a 
                        program to support deployment of idle reduction 
                        technology.
                            (ii) Priority.--The Administrator shall 
                        give priority to the deployment of idle 
                        reduction technology based on beneficial 
                        effects on air quality and ability to lessen 
                        the emission of criteria air pollutants.
                    (B) Funding.--
                            (i) Authorization of appropriations.--There 
                        are authorized to be appropriated to the 
                        Administrator to carry out subparagraph (A) 
                        $19,500,000 for fiscal year 2006, $30,000,000 
                        for fiscal year 2007, and $45,000,000 for 
                        fiscal year 2008.
                            (ii) Cost sharing.--Subject to clause 
                        (iii), the Administrator shall require at least 
                        50 percent of the costs directly and 
                        specifically related to any project under this 
                        section to be provided from non-Federal 
                        sources.
                            (iii) Necessary and appropriate 
                        reductions.--The Administrator may reduce the 
                        non-Federal requirement under clause (ii) if 
                        the Administrator determines that the reduction 
                        is necessary and appropriate to meet the 
                        objectives of this section.
            (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 1 
                        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 250 
                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 250-pound gross weight increase 
                        is not used for any purpose other than the use 
                        of idle reduction technology described in 
                        subparagraph (A).''.

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. HIGH OCCUPANCY VEHICLE EXCEPTION.

    Notwithstanding section 102(a) of title 23, United States Code, a 
State may permit a vehicle with fewer than 2 occupants to operate in 
high occupancy vehicle lanes if the vehicle--
            (1) is a dedicated vehicle (as defined in section 301 of 
        the Energy Policy Act of 1992 (42 U.S. 13211)); or
            (2) is a hybrid vehicle (as defined by the State for the 
        purpose of this section).

SEC. 759. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

    (a) Ultra-Efficient Engine Technology Partnership.--The Secretary 
of Energy 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 of Energy shall establish 
the following performance objectives for the program set forth in 
subsection (a):
            (1) A fuel efficiency increase of 10 percent.
            (2) A reduction in the impact of landing and takeoff 
        nitrogen oxides emissions on local air quality of 70 percent.
    (c) Authorization of Appropriations .--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$45,000,000 for each of the fiscal years 2006, 2007, 2008, 2009, and 
2010.

                   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 $2,000,000 for each of fiscal years 2006 through 
2010.

SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM FEASIBLE 
              AVERAGE FUEL ECONOMY.

    Section 32902(f) of title 49, United States Code, is amended to 
read as follows:
    ``(f) Considerations for Decisions on Maximum Feasible Average Fuel 
Economy.--When deciding maximum feasible average fuel economy under 
this section, the Secretary of Transportation shall consider the 
following matters:
            ``(1) Technological feasibility.
            ``(2) Economic practicability.
            ``(3) The effect of other motor vehicle standards of the 
        Government on fuel economy.
            ``(4) The need of the United States to conserve energy.
            ``(5) The effects of fuel economy standards on passenger 
        automobiles, nonpassenger automobiles, and occupant safety.
            ``(6) The effects of compliance with average fuel economy 
        standards on levels of automobile industry employment in the 
        United States.''.

SEC. 773. 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. 774. 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.

                          TITLE VIII--HYDROGEN

SEC. 801. DEFINITIONS.

    In this title:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Hydrogen Technical and Fuel Cell Advisory Committee 
        established under section 805.
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Fuel cell.--The term ``fuel cell'' means a device that 
        directly converts the chemical energy of a fuel and an oxidant 
        into electricity by an electrochemical process taking place at 
        separate electrodes in the device.
            (4) Infrastructure.--The term ``infrastructure'' means the 
        equipment, systems, or facilities used to produce, distribute, 
        deliver, or store hydrogen.
            (5) Light duty vehicle.--The term ``light duty vehicle'' 
        means a car or truck classified by the Department of 
        Transportation as a Class I or IIA vehicle.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 802. 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 803(a);
            (2) the types of entities that will carry out the 
        activities under this title and what role each entity is 
        expected to play;
            (3) the milestones that will be used to evaluate the 
        programs for the next 5 years;
            (4) the most significant technical and nontechnical hurdles 
        that stand in the way of achieving the goals described in 
        section 803(b), and how the programs will address those 
        hurdles; and
            (5) the policy assumptions that are implicit in the plan, 
        including any assumptions that would affect the sources of 
        hydrogen or the marketability of hydrogen-related products.

SEC. 803. PROGRAMS.

    (a) Activities.--The Secretary, in partnership with the private 
sector, shall conduct programs to address--
            (1) production of hydrogen from diverse energy sources, 
        including--
                    (A) fossil fuels, which may include carbon capture 
                and sequestration;
                    (B) hydrogen-carrier fuels (including ethanol and 
                methanol);
                    (C) renewable energy resources, including biomass; 
                and
                    (D) nuclear energy;
            (2) use of hydrogen for commercial, industrial, and 
        residential electric power generation;
            (3) safe delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                    (A) transmission by pipeline and other distribution 
                methods; and
                    (B) convenient and economic refueling of vehicles 
                either at central refueling stations or through 
                distributed on-site generation;
            (4) advanced vehicle technologies, including--
                    (A) engine and emission control systems;
                    (B) energy storage, electric propulsion, and hybrid 
                systems;
                    (C) automotive materials; and
                    (D) other advanced vehicle technologies;
            (5) storage of hydrogen or hydrogen-carrier fuels, 
        including development of materials for safe and economic 
        storage in gaseous, liquid, or solid form at refueling 
        facilities and onboard vehicles;
            (6) development of safe, durable, affordable, and efficient 
        fuel cells, including fuel-flexible fuel cell power systems, 
        improved manufacturing processes, high-temperature membranes, 
        cost-effective fuel processing for natural gas, fuel cell stack 
        and system reliability, low temperature operation, and cold 
        start capability;
            (7) development, after consultation with the private 
        sector, of necessary codes and standards (including 
        international codes and standards and voluntary consensus 
        standards adopted in accordance with OMB Circular A-119) and 
        safety practices for the production, distribution, storage, and 
        use of hydrogen, hydrogen-carrier fuels, and related products;
            (8) a public education program to develop improved 
        knowledge and acceptability of hydrogen-based systems; and
            (9) the ability of domestic automobile manufacturers to 
        manufacture commercially available competitive hybrid vehicle 
        technologies in the United States.
    (b) Program Goals.--
            (1) Vehicles.--For vehicles, the goals of the program are--
                    (A) to enable a commitment by automakers no later 
                than year 2015 to offer safe, affordable, and 
                technically viable hydrogen fuel cell vehicles in the 
                mass consumer market; and
                    (B) to enable production, delivery, and acceptance 
                by consumers of model year 2020 hydrogen fuel cell and 
                other hydrogen-powered vehicles that will have--
                            (i) a range of at least 300 miles;
                            (ii) improved performance and ease of 
                        driving;
                            (iii) safety and performance comparable to 
                        vehicle technologies in the market; and
                            (iv) when compared to light duty vehicles 
                        in model year 2003--
                                    (I) fuel economy that is 
                                substantially higher;
                                    (II) substantially lower emissions 
                                of air pollutants; and
                                    (III) equivalent or improved 
                                vehicle fuel system crash integrity and 
                                occupant protection.
            (2) Hydrogen energy and energy infrastructure.--For 
        hydrogen energy and energy infrastructure, the goals of the 
        program are to enable a commitment not later than 2015 that 
        will lead to infrastructure by 2020 that will provide--
                    (A) safe and convenient refueling;
                    (B) improved overall efficiency;
                    (C) widespread availability of hydrogen from 
                domestic energy sources through--
                            (i) production, with consideration of 
                        emissions levels;
                            (ii) delivery, including transmission by 
                        pipeline and other distribution methods for 
                        hydrogen; and
                            (iii) storage, including storage in surface 
                        transportation vehicles;
                    (D) hydrogen for fuel cells, internal combustion 
                engines, and other energy conversion devices for 
                portable, stationary, and transportation applications; 
                and
                    (E) other technologies consistent with the 
                Department's plan.
            (3) Fuel cells.--The goals for fuel cells and their 
        portable, stationary, and transportation applications are to 
        enable--
                    (A) safe, economical, and environmentally sound 
                hydrogen fuel cells;
                    (B) fuel cells for light duty and other vehicles; 
                and
                    (C) other technologies consistent with the 
                Department's plan.
    (c) Demonstration.--In carrying out the programs under this 
section, the Secretary shall fund a limited number of demonstration 
projects, consistent with a determination of the maturity, cost-
effectiveness, and environmental impacts of technologies supporting 
each project. In selecting projects under this subsection, the 
Secretary shall, to the extent practicable and in the public interest, 
select projects that--
            (1) involve using hydrogen and related products at existing 
        facilities or installations, such as existing office buildings, 
        military bases, vehicle fleet centers, transit bus authorities, 
        or units of the National Park System;
            (2) depend on reliable power from hydrogen to carry out 
        essential activities;
            (3) lead to the replication of hydrogen technologies and 
        draw such technologies into the marketplace;
            (4) include vehicle, portable, and stationary 
        demonstrations of fuel cell and hydrogen-based energy 
        technologies;
            (5) address the interdependency of demand for hydrogen fuel 
        cell applications and hydrogen fuel infrastructure;
            (6) raise awareness of hydrogen technology among the 
        public;
            (7) facilitate identification of an optimum technology 
        among competing alternatives;
            (8) address distributed generation using renewable sources; 
        and
            (9) address applications specific to rural or remote 
        locations, including isolated villages and islands, the 
        National Park System, and tribal entities.
The Secretary shall give preference to projects which address multiple 
elements contained in paragraphs (1) through (9).
    (d) Deployment.--In carrying out the programs under this section, 
the Secretary shall, in partnership with the private sector, conduct 
activities to facilitate the deployment of hydrogen energy and energy 
infrastructure, fuel cells, and advanced vehicle technologies.
    (e) Funding.--
            (1) In general.--The Secretary shall carry out the programs 
        under this section using a competitive, merit-based review 
        process and consistent with the generally applicable Federal 
        laws and regulations governing awards of financial assistance, 
        contracts, or other agreements.
            (2) Research centers.--Activities under this section may be 
        carried out by funding nationally recognized university-based 
        or Federal laboratory research centers.
    (f) Cost Sharing.--
            (1) Research and development.--Except as otherwise provided 
        in this title, for research and development programs carried 
        out under this title the Secretary shall require a commitment 
        from non-Federal sources of at least 20 percent of the cost of 
        the project. The Secretary may reduce or eliminate the non-
        Federal requirement under this paragraph if the Secretary 
        determines that the research and development is of a basic or 
        fundamental nature or involves technical analyses or 
        educational activities.
            (2) Demonstration and commercial application.--Except as 
        otherwise provided in this title, the Secretary shall require 
        at least 50 percent of the costs directly and specifically 
        related to any demonstration or commercial application project 
        under this title to be provided from non-Federal sources. The 
        Secretary may reduce the non-Federal requirement under this 
        paragraph if the Secretary determines that the reduction is 
        necessary and appropriate considering the technological risks 
        involved in the project and is necessary to meet the objectives 
        of this title.
            (3) Calculation of amount.--In calculating the amount of 
        the non-Federal commitment under paragraph (1) or (2), the 
        Secretary may include personnel, services, equipment, and other 
        resources.
            (4) Size of non-federal share.--The Secretary may consider 
        the size of the non-Federal share in selecting projects.
    (g) Disclosure.--Section 623 of the Energy Policy Act of 1992 (42 
U.S.C. 13293) relating to the protection of information shall apply to 
projects carried out through grants, cooperative agreements, or 
contracts under this title.

SEC. 804. INTERAGENCY TASK FORCE.

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

SEC. 805. ADVISORY COMMITTEE.

    (a) Establishment.--The Hydrogen Technical and Fuel Cell Advisory 
Committee is established to advise the Secretary on the programs and 
activities under this title.
    (b) Membership.--
            (1) Members.--The Advisory Committee shall be comprised of 
        not fewer than 12 nor more than 25 members. The members shall 
        be appointed by the Secretary to represent domestic industry, 
        academia, professional societies, government agencies, Federal 
        laboratories, previous advisory panels, and financial, 
        environmental, and other appropriate organizations based on the 
        Department's assessment of the technical and other 
        qualifications of committee members and the needs of the 
        Advisory Committee.
            (2) Terms.--The term of a member of the Advisory Committee 
        shall not be more than 3 years. The Secretary may appoint 
        members of the Advisory Committee in a manner that allows the 
        terms of the members serving at any time to expire at spaced 
        intervals so as to ensure continuity in the functioning of the 
        Advisory Committee. A member of the Advisory Committee whose 
        term is expiring may be reappointed.
            (3) Chairperson.--The Advisory Committee shall have a 
        chairperson, who is elected by the members from among their 
        number.
    (c) Review.--The Advisory Committee shall review and make 
recommendations to the Secretary on--
            (1) the implementation of programs and activities under 
        this title;
            (2) the safety, economical, and environmental consequences 
        of technologies for the production, distribution, delivery, 
        storage, or use of hydrogen energy and fuel cells; and
            (3) the plan under section 802.
    (d) Response.--
            (1) Consideration of recommendations.--The Secretary shall 
        consider, but need not adopt, any recommendations of the 
        Advisory Committee under subsection (c).
            (2) Biennial report.--The Secretary shall transmit a 
        biennial report to Congress describing any recommendations made 
        by the Advisory Committee since the previous report. The report 
        shall include a description of how the Secretary has 
        implemented or plans to implement the recommendations, or an 
        explanation of the reasons that a recommendation will not be 
        implemented. The report shall be transmitted along with the 
        President's budget proposal.
    (e) Support.--The Secretary shall provide resources necessary in 
the judgment of the Secretary for the Advisory Committee to carry out 
its responsibilities under this title.

SEC. 806. EXTERNAL REVIEW.

    (a) Plan.--The Secretary shall enter into an arrangement with the 
National Academy of Sciences to review the plan prepared under section 
802, which shall be completed not later than 6 months after the Academy 
receives the plan. Not later than 45 days after receiving the review, 
the Secretary shall transmit the review to Congress along with a plan 
to implement the review's recommendations or an explanation of the 
reasons that a recommendation will not be implemented.
    (b) Additional Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which the 
Academy will review the programs under section 803 during the fourth 
year following the date of enactment of this Act. The Academy's review 
shall include the research priorities and technical milestones, and 
evaluate the progress toward achieving them. The review shall be 
completed not later than 5 years after the date of enactment of this 
Act. Not later than 45 days after receiving the review, the Secretary 
shall transmit the review to Congress along with a plan to implement 
the review's recommendations or an explanation for the reasons that a 
recommendation will not be implemented.

SEC. 807. 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. 808. SAVINGS CLAUSE.

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

SEC. 809. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this title, in addition to any amounts made available for these 
purposes under other Acts--
            (1) $546,000,000 for fiscal year 2006;
            (2) $750,000,000 for fiscal year 2007;
            (3) $850,000,000 for fiscal year 2008;
            (4) $900,000,000 for fiscal year 2009; and
            (5) $1,000,000,000 for fiscal year 2010.

SEC. 810. SOLAR AND WIND TECHNOLOGIES.

    (a) Solar Energy Technologies.--The Secretary shall--
            (1) prepare a detailed roadmap for carrying out the 
        provisions in this subtitle related to solar energy 
        technologies and for implementing the recommendations related 
        to solar energy technologies that are included in the report 
        transmitted under subsection (c);
            (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 research and development 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 
        of Energy'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 research programs 
        dedicated to the development and advancement of concentrating 
        solar power devices; and
            (7) establish a program--
                    (A) to research and 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 research 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 subtitle related to wind energy technologies 
        and for implementing the recommendations related to wind energy 
        technologies that are included in the report transmitted under 
        subsection (c); 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 research programs 
at institutions of higher education for the development of solar energy 
technologies and wind energy technologies for the production of 
hydrogen. The research 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 of Energy.
    (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) 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 ``institution of higher education'' has the 
        meaning given to that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a));
            (3) 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);
            (4) 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
            (5) the term ``photovoltaic devices'' means devices that 
        convert light directly into electricity through a solid-state, 
        semiconductor process.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 900. SHORT TITLE; DEFINITIONS.

    (a) Short Title.--This title may be cited as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 2005''.
    (b) Definitions.--For purposes of this title:
            (1) Applied programs.--The term ``applied programs'' means 
        the research, development, demonstration, and commercial 
        application programs of the Department concerning energy 
        efficiency, renewable energy, nuclear energy, fossil energy, 
        and electricity transmission and distribution.
            (2) Biomass.--The term ``biomass'' means--
                    (A) any organic material grown for the purpose of 
                being converted to energy;
                    (B) any organic byproduct of agriculture (including 
                wastes from food production and processing) that can be 
                converted into energy; or
                    (C) any waste material that can be converted to 
                energy, is segregated from other waste materials, and 
                is derived from--
                            (i) any of the following forest-related 
                        resources: mill residues, precommercial 
                        thinnings, slash, brush, or otherwise 
                        nonmerchantable material; or
                            (ii) wood waste materials, including waste 
                        pallets, crates, dunnage, manufacturing and 
                        construction wood wastes (other than pressure-
                        treated, chemically-treated, or painted wood 
                        wastes), and landscape or right-of-way tree 
                        trimmings, but not including municipal solid 
                        waste, gas derived from the biodegradation of 
                        municipal solid waste, or paper that is 
                        commonly recycled.
            (3) Department.--The term ``Department'' means the 
        Department of Energy.
            (4) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary of 
        Energy by the Department of Energy Organization Act (42 U.S.C. 
        7101 et seq.) or other law.
            (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (6) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                    (A) Ames Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Accelerator Laboratory.
                    (E) Idaho National Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Savannah River National Laboratory.
                    (P) Stanford Linear Accelerator Center.
                    (Q) Thomas Jefferson National Accelerator Facility.
            (7) Renewable energy.--The term ``renewable energy'' means 
        energy from wind, sunlight, the flow of water, heat from the 
        Earth, or biomass that can be converted into a usable form such 
        as process heat, electricity, fuel, or space heat.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Northern Mariana Islands, and any other commonwealth, 
        territory, or possession of the United States.
            (10) University.--The term ``university'' has the meaning 
        given the term ``institution of higher education'' in section 
        101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
            (11) User facility.--The term ``user facility'' means a 
        research and development facility supported, in whole or in 
        part, by Departmental funds that is open, at a minimum, to all 
        qualified United States researchers.

                      Subtitle A--Science Programs

SEC. 901. OFFICE OF SCIENCE PROGRAMS.

    (a) In General.--The Secretary shall conduct, through the Office of 
Science, programs of research, development, demonstration, and 
commercial application in high energy physics, 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) Rare Isotope Accelerator.--
            (1) Establishment.--The Secretary shall construct and 
        operate a Rare Isotope Accelerator. The Secretary shall 
        commence construction no later than September 30, 2008.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary such sums as may be 
        necessary to carry out this subsection. The Secretary shall not 
        spend more than $1,100,000,000 in Federal funds for all 
        activities associated with the Rare Isotope Accelerator prior 
        to operation.

SEC. 902. SYSTEMS BIOLOGY PROGRAM.

    (a) Program.--
            (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in genetics, 
        protein science, and computational biology to support the 
        energy, national security, and environmental missions of the 
        Department.
            (2) Grants.--The program shall support individual 
        researchers and multidisciplinary teams of researchers through 
        competitive, merit-reviewed grants.
            (3) Consultation.--In carrying out the program, the 
        Secretary shall consult with other Federal agencies that 
        conduct genetic and protein research.
    (b) Goals.--The program shall have the goal of developing 
technologies and methods based on the biological functions of genomes, 
microbes, and plants that--
            (1) can facilitate the production of fuels, including 
        hydrogen;
            (2) convert carbon dioxide to organic carbon;
            (3) detoxify soils and water, including at Departmental 
        facilities, contaminated with heavy metals and radiological 
        materials; and
            (4) address other Department missions as identified by the 
        Secretary.
    (c) Plan.--
            (1) Development of plan.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary shall prepare and 
        transmit to Congress a research plan describing how the program 
        authorized pursuant to this section will be undertaken to 
        accomplish the program goals established in subsection (b).
            (2) Review of plan.--The Secretary shall contract with the 
        National Academy of Sciences to review the research plan 
        developed under this subsection. The Secretary shall transmit 
        the review to Congress not later than 18 months after 
        transmittal of the research plan under paragraph (1), along 
        with the Secretary's response to the recommendations contained 
        in the review.
    (d) User Facilities and Ancillary Equipment.--Within the funds 
authorized to be appropriated pursuant to this subtitle, the amounts 
specified under section 910(b)(1), (c)(1), (d)(1), (e)(1), and (f)(1) 
shall be available for projects to develop, plan, construct, acquire, 
or operate special equipment, instrumentation, or facilities, including 
user facilities, for researchers conducting research, development, 
demonstration, and commercial application in systems biology and 
proteomics and associated biological disciplines.
    (e) Prohibition on Biomedical and Human Cell and Human Subject 
Research.--
            (1) No biomedical research.--In carrying out the program 
        under this section, the Secretary shall not conduct biomedical 
        research.
            (2) Limitations.--Nothing in this section shall authorize 
        the Secretary to conduct any research or demonstrations--
                    (A) on human cells or human subjects; or
                    (B) designed to have direct application with 
                respect to human cells or human subjects.

SEC. 903. CATALYSIS RESEARCH AND DEVELOPMENT PROGRAM.

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

SEC. 904. HYDROGEN.

    The Secretary shall conduct a program of fundamental research and 
development in support of programs authorized in titleVIII.

SEC. 905. ADVANCED SCIENTIFIC COMPUTING RESEARCH.

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

SEC. 906. FUSION ENERGY SCIENCES PROGRAM.

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

SEC. 907. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

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

SEC. 908. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.

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

SEC. 909. SCIENCE AND ENGINEERING PILOT PROGRAM.

    (a) Establishment of Consortium.--Notwithstanding section 913, the 
Secretary shall award a grant to Oak Ridge Associated Universities to 
establish a university consortium to carry out a regional pilot program 
for enhancing scientific, technological, engineering, and mathematical 
literacy, creativity, and decisionmaking. 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 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 
        country.
    (c) Report.--Not later than 2 years after appropriations are first 
available for the program, the Secretary shall transmit to Congress a 
report outlining lessons learned and containing a plan for expanding 
the program nationwide. The Secretary may begin implementation of such 
plan for expansion of the program on October 1, 2008. The expansion of 
the program shall be subject to section 913.

SEC. 910. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--In addition to amounts authorized to be 
appropriated under the 21st Century Nanotechnology Research and 
Development Act (15 U.S.C. 7501 et seq.) and the Department of Energy 
High-End Computing Revitalization Act of 2004 (15 U.S.C. 5541 et seq.), 
the following sums are authorized to be appropriated to the Secretary 
for the purposes of carrying out this subtitle:
            (1) For fiscal year 2006, $3,785,000,000.
            (2) For fiscal year 2007, $4,153,000,000.
            (3) For fiscal year 2008, $4,628,000,000.
            (4) For fiscal year 2009, $5,300,000,000.
            (5) For fiscal year 2010, $5,800,000,000.
    (b) 2006 Allocations.--From amounts authorized under subsection 
(a)(1), the following sums are authorized for fiscal year 2006:
            (1) Systems biology.--For activities under section 902, 
        $100,000,000.
            (2) Scientific computing.--For activities under section 
        905, $252,000,000.
            (3) Fusion energy sciences.--For activities under section 
        906, excluding activities under subsection (c) of that section, 
        $335,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 907, $800,000.
            (5) Office of scientific and technical information.--For 
        activities under section 908, $7,000,000.
            (6) Pilot program.--For activities under section 909, 
        $4,000,000.
    (c) 2007 Allocations.--From amounts authorized under subsection 
(a)(2), the following sums are authorized for fiscal year 2007:
            (1) Systems biology.--For activities under section 902, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        905, $270,000,000.
            (3) Fusion energy sciences.--For activities under section 
        906, excluding activities under subsection (c) of that section, 
        $349,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 907, $1,600,000.
            (5) Office of scientific and technical information.--For 
        activities under section 908, $7,500,000.
            (6) Pilot program.--For activities under section 909, 
        $4,000,000.
    (d) 2008 Allocations.--From amounts authorized under subsection 
(a)(3), the following sums are authorized for fiscal year 2008:
            (1) Systems biology.--For activities under section 902, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        905, $350,000,000.
            (3) Fusion energy sciences.--For activities under section 
        906, excluding activities under subsection (c) of that section, 
        $362,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 907, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 908, $8,000,000.
            (6) Pilot program.--For activities under section 909, 
        $4,000,000.
    (e) 2009 Allocations.--From amounts authorized under subsection 
(a)(4), the following sums are authorized for fiscal year 2009:
            (1) Systems biology.--For activities under section 902, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        905, $375,000,000.
            (3) Fusion energy sciences.--For activities under section 
        906, excluding activities under subsection (c) of that section, 
        $377,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 907, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 908, $8,000,000.
            (6) Pilot program.--For activities under section 909, 
        $8,000,000.
    (f) 2010 Allocations.--From amounts authorized under subsection 
(a)(5), the following sums are authorized for fiscal year 2010:
            (1) Systems biology.--For activities under section 902, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        905, $400,000,000.
            (3) Fusion energy sciences.--For activities under section 
        906, excluding activities under subsection (c) of that section, 
        $393,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 907, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 908, $8,500,000.
            (6) Pilot program.--For activities under section 909, 
        $8,000,000.
    (g) ITER Construction.--From amounts authorized under subsection 
(a) and in addition to amounts authorized under subsections (b)(3), 
(c)(3), (d)(3), (e)(3), and (f)(3), there are authorized to be 
appropriated to the Secretary such sums as may be necessary for ITER 
construction, consistent with the limitations of section 906(c).

           Subtitle B--Research Administration and Operations

SEC. 911. COST SHARING.

    (a) Research and Development.--Except as otherwise provided in this 
title, for research and development programs carried out under this 
title, the Secretary shall require a commitment from non-Federal 
sources of at least 20 percent of the cost of the project. The 
Secretary may reduce or eliminate the non-Federal requirement under 
this subsection if the Secretary determines that the research and 
development is of a basic or fundamental nature.
    (b) Demonstration and Commercial Application.--Except as otherwise 
provided in this title, the Secretary shall require at least 50 percent 
of the costs related to any demonstration or commercial application 
activities under this title to be provided from non-Federal sources. 
The Secretary may reduce the non-Federal requirement under this 
subsection if the Secretary determines that the reduction is necessary 
and appropriate considering the technological risks involved in the 
project and is necessary to meet the objectives of this title.
    (c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may 
include personnel, services, equipment, and other resources.
    (d) Size of Non-Federal Share.--The Secretary may consider the 
amount of the non-Federal share in selecting projects under this title.

SEC. 912. REPROGRAMMING.

    (a) Distribution Report.--Not later than 60 days after the date of 
enactment of an Act appropriating amounts authorized under this title, 
the Secretary shall transmit to Congress a report explaining how such 
amounts will be distributed among the activities authorized by this 
title.
    (b) Reprogramming Letter.--No amount authorized by this title shall 
be obligated or expended for a purpose inconsistent with the 
appropriations Act appropriating such amount, the report accompanying 
such appropriations Act, or a distribution report transmitted under 
subsection (a) if such obligation or expenditure would change an 
individual amount, as represented in such an Act, report, or 
distribution report, by more than 2 percent or $2,000,000, whichever is 
smaller, unless the Secretary has transmitted to Congress a letter of 
explanation and a period of 30 days has elapsed after Congress receives 
the letter.
    (c) Computation.--The computation of the 30-day period described in 
subsection (b) shall exclude any day on which either House of Congress 
is not in session because of an adjournment of more than 3 days to a 
day certain.

SEC. 913. MERIT-BASED COMPETITION.

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

SEC. 914. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

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

SEC. 915. 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), (O) of section 900(b)(6)), unless such contract is competitively 
awarded, or the Secretary grants, on a case-by-case basis, a waiver. 
The Secretary may not delegate the authority to grant such a waiver and 
shall submit to the Congress a report notifying it of the waiver, and 
setting forth the reasons for the waiver, at least 60 days prior to the 
date of the award of such contract.

SEC. 916. NATIONAL LABORATORY DESIGNATION.

    After the date of enactment of this Act the Secretary shall not 
designate a facility that is not referred to in section 900(b)(6) as a 
National Laboratory.

SEC. 917. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

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

SEC. 918. USER FACILITY BEST PRACTICES PLAN.

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

SEC. 919. SUPPORT FOR SCIENCE AND ENERGY INFRASTRUCTURE AND FACILITIES.

    (a) Strategy.--The Secretary shall develop and implement a strategy 
for infrastructure and facilities supported primarily from the Office 
of Science and the applied programs at each National Laboratory and 
Department research facility. Such strategy shall provide cost-
effective means for--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility modifications; and
            (4) building new facilities.
    (b) Report.--
            (1) Requirement.--The Secretary shall prepare and transmit 
        to the Congress not later than June 1, 2007, a report 
        summarizing the strategies developed under subsection (a).
            (2) Contents.--For each National Laboratory and Department 
        research facility, for the facilities primarily used for 
        science and energy research, such report shall contain--
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, including cost 
                and schedule requirements;
                    (B) a current 10-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                    (C) the total current budget for all facilities and 
                infrastructure funding; and
                    (D) the current status of each facility and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 920. COORDINATION PLAN.

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

SEC. 921. AVAILABILITY OF FUNDS.

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

                     Subtitle C--Energy Efficiency

             CHAPTER 1--VEHICLES, BUILDINGS, AND INDUSTRIES

SEC. 922. PROGRAMS.

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

SEC. 923. VEHICLES.

    (a) Advanced, Cost-Effective Technologies.-- The Secretary shall 
conduct a program of research, development, demonstration, and 
commercial application of advanced, cost-effective technologies to 
improve the energy efficiency and environmental performance of light-
duty and heavy-duty vehicles, including--
            (1) hybrid and electric propulsion systems, including plug-
        in hybrid systems;
            (2) advanced engines, including combustion engines;
            (3) advanced materials, including high strength, 
        lightweight materials, such as nanostructured materials, 
        composites, multimaterial parts, carbon fibers, and materials 
        with high thermal conductivity;
            (4) technologies for reduced drag and rolling resistance;
            (5) whole-vehicle design optimization to reduce the weight 
        of component parts and thus increase the fuel economy of the 
        vehicle, including fiber optics to replace traditional wiring;
            (6) thermoelectric devices that capture waste heat and 
        convert thermal energy into electricity; and
            (7) advanced drivetrains.
    (b) Low-Cost Hydrogen Propulsion and Infrastructure.--The Secretary 
of Energy 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 two 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 gas;
                            (ii) can travel a minimum of 300 miles 
                        under normal road conditions; and
                            (iii) uses hydrogen produced from water 
                        using only solar energy.

SEC. 924. BUILDINGS.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of cost-
effective technologies, for new construction and retrofit, to improve 
the energy efficiency and environmental performance of commercial, 
industrial, institutional, and residential buildings. The program shall 
use a whole-buildings approach, integrating work on elements 
including--
            (1) advanced controls, including occupancy sensors, 
        daylighting controls, wireless technologies, automated 
        responses to changes in the internal and external environment, 
        and real time delivery of information on building system and 
        component performance;
            (2) building envelope, including windows, roofing systems 
        and materials, and building-integrated photovoltaics;
            (3) building systems components, including--
                    (A) lighting;
                    (B) appliances, including advanced technologies, 
                such as stand-by load technologies, for office 
                equipment, food service equipment, and laundry 
                equipment; and
                    (C) heating, ventilation, and cooling systems, 
                including ground-source heat pumps and radiant heating; 
                and
            (4) onsite renewable energy generation.
    (b) Energy Efficient Building Pilot Grant Program.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary shall establish a pilot 
        program to award grants to businesses and organizations for new 
        construction of energy efficient buildings, or major 
        renovations of buildings that will result in energy efficient 
        buildings, to demonstrate innovative energy efficiency 
        technologies, especially those sponsored by the Department.
            (2) Awards.--The Secretary shall award grants under this 
        subsection competitively to those applicants whose proposals--
                    (A) best demonstrate--
                            (i) likelihood to meet or exceed the design 
                        standards referred to in paragraph (7);
                            (ii) likelihood to maximize cost-effective 
                        energy efficiency opportunities; and
                            (iii) advanced energy efficiency 
                        technologies; and
                    (B) are least likely to be realized without Federal 
                assistance.
            (3) Amount of grants.--Grants under this subsection shall 
        be for up to 50 percent of design and energy modeling costs, 
        not to exceed $50,000 per building. No single grantee may be 
        eligible for more than 3 grants per year under this program.
            (4) Grant payments.--
                    (A) Initial payment.--The Secretary shall pay 50 
                percent of the total amount of the grant to grant 
                recipients upon selection.
                    (B) Remainder of payment.--The Secretary shall pay 
                the remaining 50 percent of the grant only after 
                independent certification of operational buildings for 
                compliance with the standards for energy efficient 
                buildings described in paragraph (7).
                    (C) Failure to comply.--The Secretary shall not 
                provide the remainder of the payment unless the 
                building is certified within 6 months after operation 
                of the completed building to meet the requirements 
                described in subparagraph (B), or in the case of major 
                renovations the building is certified within 6 months 
                of the completion of the renovations.
            (5) Report to congress.--Not later than 3 years after 
        awarding the first grant under this subsection, the Secretary 
        shall transmit to Congress a report containing--
                    (A) the total number and dollar amount of grants 
                awarded under this subsection; and
                    (B) an estimate of aggregate cost and energy 
                savings enabled by the pilot program under this 
                subsection.
            (6) Administrative expenses.--Administrative expenses for 
        the program under this subsection shall not exceed 10 percent 
        of appropriated funds.
            (7) Definition of energy efficient building.--For purposes 
        of this subsection, the term ``energy efficient building'' 
        means a building that is independently certified--
                    (A) to meet or exceed the applicable United States 
                Green Building Council's Leadership in Energy and 
                Environmental Design standards for a silver, gold, or 
                platinum rating; and
                    (B) to achieve a reduction in energy consumption 
                of--
                            (i) at least 25 percent for new 
                        construction, compared to the energy standards 
                        set by the Federal Building Code (10 CFR part 
                        434); and
                            (ii) at least 20 percent for major 
                        renovations, compared to energy consumption 
                        before renovations are begun.
    (c) Standardization Report and Program.--
            (1) Report.--The Secretary shall enter into an arrangement 
        with the National Institute of Building Sciences to--
                    (A) conduct a comprehensive assessment of how well 
                current voluntary consensus standards related to 
                buildings match state-of-the-art knowledge on the 
                design, construction, operation, repair, and renovation 
                of high-performance buildings; and
                    (B) recommend steps for the Secretary to take to 
                accelerate the development and promulgation of 
                voluntary consensus standards for high-performance 
                buildings that would address all major high-performance 
                building attributes, including energy efficiency, 
                sustainability, safety and security, life-cycle cost, 
                and productivity.
            (2) Program.--After receiving the report under paragraph 
        (1), the Secretary shall establish a program of technical 
        assistance and grants to support standards development 
        organizations in--
                    (A) the revision of existing standards, to reflect 
                current knowledge of high-performance buildings; and
                    (B) the development and promulgation of new 
                standards in areas important to high-performance 
                buildings where there is no existing standard or where 
                an existing standard cannot easily be modified.

SEC. 925. INDUSTRIES.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of advanced 
technologies to improve the energy efficiency, environmental 
performance, and process efficiency of energy-intensive and waste-
intensive industries. Such program shall be focused on industries whose 
total annual energy consumption amounts to more than 1.0 percent of the 
total nationwide annual energy consumption, according to the most 
recent data available to the Department. Research and development 
efforts under this section shall give a higher priority to broad-
benefit efficiency technologies that have practical application across 
industry sectors.
    (b) Electric Motor Control Technology.--The program conducted under 
subsection (a) shall include research on, and development, 
demonstration, and commercial application of, advanced control devices 
to improve the energy efficiency of electric motors, including those 
used in industrial processes, heating, ventilation, and cooling.

SEC. 926. DEMONSTRATION AND COMMERCIAL APPLICATION.

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

SEC. 927. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Associated equipment.--The term ``associated 
        equipment'' means equipment located where the batteries will be 
        used that is necessary to enable the use of the energy stored 
        in the batteries.
            (2) Battery.--The term ``battery'' means an energy storage 
        device that previously has been used to provide motive power in 
        a vehicle powered in whole or in part by electricity.
    (b) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries if the Secretary finds that there are 
sufficient numbers of such batteries to support the program. The 
program shall be--
            (1) designed to demonstrate the use of batteries in 
        secondary applications, including utility and commercial power 
        storage and power quality;
            (2) structured to evaluate the performance, including 
        useful service life and costs, of such batteries in field 
        operations, and the necessary supporting infrastructure, 
        including reuse and disposal of batteries; and
            (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (c) Solicitation.--Not later than 180 days after the date of 
enactment of this Act, if the Secretary finds under subsection (b) that 
there are sufficient numbers of batteries to support the program, the 
Secretary shall solicit proposals to demonstrate the secondary use of 
batteries and associated equipment and supporting infrastructure in 
geographic locations throughout the United States. The Secretary may 
make additional solicitations for proposals if the Secretary determines 
that such solicitations are necessary to carry out this section.
    (d) Selection of Proposals.--
            (1) In general.--The Secretary shall, not later than 90 
        days after the closing date established by the Secretary for 
        receipt of proposals under subsection (c), select up to 5 
        proposals which may receive financial assistance under this 
        section, subject to the availability of appropriations.
            (2) Diversity; environmental effect.--In selecting 
        proposals, the Secretary shall consider diversity of battery 
        type, geographic and climatic diversity, and life-cycle 
        environmental effects of the approaches.
            (3) Limitation.--No 1 project selected under this section 
        shall receive more than 25 percent of the funds authorized for 
        the program under this section.
            (4) Optimization of federal resources.--The Secretary shall 
        consider the extent of involvement of State or local government 
        and other persons in each demonstration project to optimize use 
        of Federal resources.
            (5) Other criteria.--The Secretary may consider such other 
        criteria as the Secretary considers appropriate.
    (e) Conditions.--The Secretary shall require that--
            (1) relevant information be provided to the Department, the 
        users of the batteries, the proposers, and the battery 
        manufacturers;
            (2) the proposer provide at least 50 percent of the costs 
        associated with the proposal; and
            (3) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law.

SEC. 928. NEXT GENERATION LIGHTING INITIATIVE.

    (a) In General.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
research, development, demonstration, and commercial application 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
    (b) Objectives.--The objectives of the initiative shall be to 
develop advanced solid-state organic and inorganic lighting 
technologies based on white light emitting diodes that, compared to 
incandescent and fluorescent lighting technologies, are longer lasting; 
more energy-efficient; and cost-competitive, and have less 
environmental impact.
    (c) Industry Alliance.--The Secretary shall, not later than 3 
months after the date of enactment of this section, competitively 
select an Industry Alliance to represent participants that are private, 
for-profit firms which, as a group, are broadly representative of 
United States solid state lighting research, development, 
infrastructure, and manufacturing expertise as a whole.
    (d) Research.--
            (1) In general.--The Secretary shall carry out the research 
        activities of the Next Generation Lighting Initiative through 
        competitively awarded grants to researchers, including Industry 
        Alliance participants, National Laboratories, and institutions 
        of higher education.
            (2) Assistance from the industry alliance.--The Secretary 
        shall annually solicit from the Industry Alliance--
                    (A) comments to identify solid-state lighting 
                technology needs;
                    (B) assessment of the progress of the Initiative's 
                research activities; and
                    (C) assistance in annually updating solid-state 
                lighting technology roadmaps.
            (3) Availability of information and roadmaps.--The 
        information and roadmaps under paragraph (2) shall be available 
        to the public and public response shall be solicited by the 
        Secretary.
    (e) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out a development, demonstration, and commercial 
application program for the Next Generation Lighting Initiative through 
competitively selected awards. The Secretary may give preference to 
participants of the Industry Alliance selected pursuant to subsection 
(c).
    (f) Intellectual Property.--The Secretary may require, in 
accordance with the authorities provided in 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--
            (1) for any new invention resulting from activities under 
        subsection (d)--
                    (A) the Industry Alliance members that are active 
                participants in research, development, and 
                demonstration activities related to the advanced solid-
                state lighting technologies that are the subject of 
                this section shall be granted first option to negotiate 
                with the invention owner nonexclusive licenses and 
                royalties for uses of the invention related to solid-
                state lighting on terms that are reasonable under the 
                circumstances; and
                    (B)(i) for 1 year after a United States patent is 
                issued for the invention, the patent holder shall not 
                negotiate any license or royalty with any entity that 
                is not a participant in the Industry Alliance described 
                in subparagraph (A); and
                    (ii) during the year described in clause (i), the 
                invention owner shall negotiate nonexclusive licenses 
                and royalties in good faith with any interested 
                participant in the Industry Alliance described in 
                subparagraph (A); and
            (2) such other terms as the Secretary determines are 
        required to promote accelerated commercialization of inventions 
        made under the Initiative.
    (g) National Academy Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct periodic 
reviews of the Next Generation Lighting Initiative. The Academy shall 
review the research priorities, technical milestones, and plans for 
technology transfer and progress towards achieving them. The Secretary 
shall consider the results of such reviews in evaluating the 
information obtained under subsection (d)(2).
    (h) Definitions.--As used 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) Research.--The term ``research'' includes research on 
        the technologies, materials, and manufacturing processes 
        required for white light emitting diodes.
            (3) Industry alliance.--The term ``Industry Alliance'' 
        means an entity selected by the Secretary under subsection (c).
            (4) White light emitting diode.--The term ``white light 
        emitting diode'' means a semiconducting package, utilizing 
        either organic or inorganic materials, that produces white 
        light using externally applied voltage.

SEC. 929. DEFINITIONS.

    For the purposes of this chapter--
            (1) the term ``cost-effective'' means resulting in a simple 
        payback of costs in 10 years or less; and
            (2) the term ``whole-buildings approach'' includes, on a 
        life-cycle basis, the energy use, cost of operations, and ease 
        of repair or upgrade of a building.

SEC. 930. AUTHORIZATION OF APPROPRIATIONS.

    The following sums are authorized to be appropriated to the 
Secretary for the purposes of carrying out this chapter:
            (1) For fiscal year 2006, $620,000,000, including--
                    (A) $200,000,000 for carrying out the vehicles 
                program under section 923;
                    (B) $100,000,000 for carrying out the buildings 
                program under section 924, of which $10,000,000 shall 
                be for the grant program under section 924(b);
                    (C) $100,000,000 for carrying out the industries 
                program under section 925(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 925(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 926;
                    (F) $4,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 927; 
                and
                    (G) $20,000,000 for carrying out the Next 
                Generation Lighting Initiative under section 928.
            (2) For fiscal year 2007, $700,000,000, including--
                    (A) $240,000,000 for carrying out the vehicles 
                program under section 923;
                    (B) $130,000,000 for carrying out the buildings 
                program under section 924, of which $10,000,000 shall 
                be for the grant program under section 924(b);
                    (C) $115,000,000 for carrying out the industries 
                program under section 925(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 925(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 926;
                    (F) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 927; 
                and
                    (G) $30,000,000 for carrying out the Next 
                Generation Lighting Initiative under section 928.
            (3) For fiscal year 2008, $800,000,000, including--
                    (A) $270,000,000 for carrying out the vehicles 
                program under section 923;
                    (B) $160,000,000 for carrying out the buildings 
                program under section 924, of which $10,000,000 shall 
                be for the grant program under section 924(b);
                    (C) $140,000,000 for carrying out the industries 
                program under section 925(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 925(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 926;
                    (F) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 927; 
                and
                    (G) $50,000,000 for carrying out the Next 
                Generation Lighting Initiative under section 928.
            (4) For fiscal year 2009, $925,000,000, including--
                    (A) $310,000,000 for carrying out the vehicles 
                program under section 923;
                    (B) $200,000,000 for carrying out the buildings 
                program under section 924, of which $10,000,000 shall 
                be for the grant program under section 924(b);
                    (C) $170,000,000 for carrying out the industries 
                program under section 925(a);
                    (D) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 926;
                    (E) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 927; 
                and
                    (F) $50,000,000 for carrying out the Next 
                Generation Lighting Initiative under section 928.
            (5) For fiscal year 2010, $1,000,000,000, including--
                    (A) $340,000,000 for carrying out the vehicles 
                program under section 923;
                    (B) $240,000,000 for carrying out the buildings 
                program under section 924, of which $10,000,000 shall 
                be for the grant program under section 924(b);
                    (C) $190,000,000 for carrying out the industries 
                program under section 925(a);
                    (D) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 926;
                    (E) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 927; 
                and
                    (F) $50,000,000 for carrying out the Next 
                Generation Lighting Initiative under section 928.

SEC. 931. LIMITATION ON USE OF FUNDS.

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

       CHAPTER 2--DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS

SEC. 932. DISTRIBUTED ENERGY.

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

SEC. 933. ELECTRICITY TRANSMISSION AND DISTRIBUTION AND ENERGY 
              ASSURANCE.

    (a) Program.--The Secretary shall conduct a research, development, 
demonstration, and commercial application program on advanced control 
devices to improve the energy efficiency and reliability of the 
electric transmission and distribution systems and to protect the 
Nation against severe energy supply disruptions. This program shall 
address, at a minimum--
            (1) advanced energy delivery and storage technologies, 
        materials, and systems, including new transmission 
        technologies, such as flexible alternating current transmission 
        systems, composite conductor materials, and other technologies 
        that enhance reliability, operational flexibility, or power-
        carrying capability;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) supply of electricity to the power grid by small-scale, 
        distributed, and residential-based power generators;
            (9) the development and use of advanced grid design, 
        operation, and planning tools;
            (10) any other infrastructure technologies, as appropriate; 
        and
            (11) technology transfer and education.
    (b) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify performance goals, with quantifiable 
        5-year cost and energy savings target levels, for electricity 
        transmission and distribution and energy assurance, and any 
        other such goals the Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.
    (c) 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.

SEC. 933A. ADVANCED PORTABLE POWER DEVICES.

    (a) Program.--The Secretary shall--
            (1) establish a research, development, and demonstration 
        program to develop working models of small scale portable power 
        devices; and
            (2) 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.
    (b) Organization.--The universities identified and utilized under 
subsection (a)(2) are authorized to establish an organization to 
promote small scale portable power devices.
    (c) Definition.--For purposes of this section, 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. 934. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
chapter:
            (1) For fiscal year 2006, $220,000,000.
            (2) For fiscal year 2007, $240,000,000.
            (3) For fiscal year 2008, $250,000,000.
            (4) For fiscal year 2009, $265,000,000.
            (5) For fiscal year 2010, $275,000,000.
    (b) Micro-Cogeneration Energy Technology.--From the amounts 
authorized under subsection (a), $20,000,000 for each of fiscal years 
2006 and 2007 are authorized for activities under section 932(b).
    (c) Electricity Transmission and Distribution and Energy 
Assurance.--From the amounts authorized under subsection (a), the 
following sums are authorized for activities under section 933:
            (1) For fiscal year 2006, $130,000,000, of which $2,000,000 
        shall be for the program under section 933(c).
            (2) For fiscal year 2007, $140,000,000.
            (3) For fiscal year 2008, $150,000,000.
            (4) For fiscal year 2009, $160,000,000.
            (5) For fiscal year 2010, $165,000,000.

                      Subtitle D--Renewable Energy

SEC. 935. FINDINGS.

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

SEC. 936. DEFINITIONS.

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

SEC. 937. PROGRAMS.

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

SEC. 938. SOLAR.

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

SEC. 939. BIOENERGY PROGRAMS.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for cellulosic 
biomass, including--
            (1) biomass conversion to heat and electricity;
            (2) biomass conversion to liquid fuels;
            (3) biobased products;
            (4) integrated biorefineries that may produce heat, 
        electricity, liquid fuels, and biobased products;
            (5) cross-cutting activities on feedstocks and enzymes; and
            (6) life-cycle economic analysis.
    (b) Biofuels and Biobased Products.--The objectives of the biofuels 
and biobased products programs under paragraphs (2), (3), and (4) of 
subsection (a), and of the biorefinery demonstration program under 
subsection (c), shall be to develop, in partnership with industry--
            (1) advanced biochemical and thermochemical conversion 
        technologies capable of making high-value biobased chemical 
        feedstocks and products, to substitute for petroleum-based 
        feedstocks and products, biofuels that are price-competitive 
        with gasoline or diesel in either internal combustion engines 
        or fuel cell-powered vehicles, and biobased products from a 
        variety of feedstocks, including grains, cellulosic biomass, 
        and agricultural byproducts; and
            (2) advanced biotechnology processes capable of making 
        biofuels and biobased products, with emphasis on development of 
        biorefinery technologies, including enzyme-based processing 
        technologies.
    (c) Biomass Integrated Refinery Demonstration.--
            (1) In general.--The Secretary shall conduct a program to 
        demonstrate the commercial application of at least 5 integrated 
        biorefineries. The Secretary shall ensure geographical 
        distribution of biorefinery demonstrations under this 
        subsection. The Secretary shall not provide more than 
        $100,000,000 under this subsection for any single biorefinery 
        demonstration. The Secretary shall award the biorefinery 
        demonstrations so as to encourage--
                    (A) the demonstration of a wide variety of 
                cellulosic biomass feedstocks;
                    (B) the commercial application of biomass 
                technologies for a variety of uses, including--
                            (i) liquid transportation fuels;
                            (ii) high-value biobased chemicals;
                            (iii) substitutes for petroleum-based 
                        feedstocks and products; and
                            (iv) energy in the form of electricity or 
                        useful heat; and
                    (C) the demonstration of the collection and 
                treatment of a variety of biomass feedstocks.
            (2) Proposals.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for demonstration of advanced biorefineries. The Secretary 
        shall select only proposals that--
                    (A) demonstrate that the project will be able to 
                operate profitably without direct Federal subsidy after 
                initial construction costs are paid; and
                    (B) enable the biorefinery to be easily replicated.
    (d) University Biodiesel Program.--The Secretary shall establish a 
demonstraton program to determine the feasibility of the operation of 
diesel electric power generators, using biodiesel fuels, with ratings 
as high as B100 at a university electric generation facility. 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.
    (e) Grants.--Of the funds authorized to be appropriated for 
activities authorized under this section, not less than $5,000,000 for 
each fiscal year shall be made available for grants to Historically 
Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving 
Institutions.

SEC. 940. WIND.

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

SEC. 941. GEOTHERMAL.

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

SEC. 942. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

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

SEC. 943. ADDITIONAL PROGRAMS.

    (a) In General.--The Secretary may conduct research, development, 
demonstration, and commercial application programs of--
            (1) ocean energy, including wave energy;
            (2) kinetic hydro turbines; and
            (3) the combined use of renewable energy technologies with 
        one another and with other energy technologies.
    (b) Marine Renewable Energy Study.--
            (1) Study.--The Secretary shall enter into an arrangement 
        with the National Academy of Sciences to conduct a study on--
                    (A) the feasibility of various methods of renewable 
                generation of energy from the ocean, including energy 
                from waves, tides, currents, and thermal gradients; and
                    (B) the research, development, demonstration, and 
                commercial application activities required to make 
                marine renewable energy generation competitive with 
                other forms of electricity generation.
            (2) Transmittal.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall transmit the study 
        to Congress along with the Secretary's recommendations for 
        implementing the results of the study.
    (c) Renewable Energy in Public Buildings.--
            (1) 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.
            (2) Limit on federal funding.--The Secretary shall provide 
        under this subsection no more than 40 percent of the 
        incremental costs of the solar or other renewable energy source 
        project funded.
            (3) Requirement.--As part of the application for awards 
        under this subsection, the Secretary shall require all 
        applicants--
                    (A) to demonstrate a continuing commitment to the 
                use of solar and other renewable energy sources in 
                buildings they own or operate; and
                    (B) to state how they expect any award to further 
                their transition to the significant use of renewable 
                energy.

SEC. 944. ANALYSIS AND EVALUATION.

    (a) 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--
            (1) economic and technical analysis of renewable energy 
        potential, including resource assessment;
            (2) analysis of past program performance, both in terms of 
        technical advances and in market introduction of renewable 
        energy; and
            (3) any other analysis or evaluation that the Secretary 
        considers appropriate.
    (b) Funding.--The Secretary may designate up to 1 percent of the 
funds appropriated for carrying out this subtitle for analysis and 
evaluation activities under this section.

SEC. 945. AUTHORIZATION OF APPROPRIATIONS.

    The following sums are authorized to be appropriated to the 
Secretary for the purposes of carrying out this subtitle:
            (1) For fiscal year 2006, $465,000,000, of which--
                    (A) $100,000,000 shall be for carrying out the 
                solar program under section 938;
                    (B) $200,000,000 shall be for carrying out the 
                bioenergy program under section 939, including 
                $100,000,000 for the biorefinery demonstration program 
                under section 939(c);
                    (C) $55,000,000 shall be for carrying out the wind 
                program under section 940, including $10,000,000 for 
                the facility described in section 940(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 941; and
                    (E) $50,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 942.
            (2) For fiscal year 2007, $605,000,000, of which--
                    (A) $140,000,000 shall be for carrying out the 
                solar program under section 938;
                    (B) $245,000,000 shall be for carrying out the 
                bioenergy program under section 939, including 
                $125,000,000 for the biorefinery demonstration program 
                under section 939(c);
                    (C) $60,000,000 shall be for carrying out the wind 
                program under section 940, including $15,000,000 for 
                the facility described in section 940(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 941; and
                    (E) $100,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 942.
            (3) For fiscal year 2008, $775,000,000, of which--
                    (A) $200,000,000 shall be for carrying out the 
                solar program under section 938;
                    (B) $310,000,000 shall be for carrying out the 
                bioenergy program under section 939, including 
                $150,000,000 for the biorefinery demonstration program 
                under section 939(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 940, including $10,000,000 for 
                the facility described in section 940(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 941; and
                    (E) $150,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 942.
            (4) For fiscal year 2009, $940,000,000, of which--
                    (A) $250,000,000 shall be for carrying out the 
                solar program under section 938;
                    (B) $355,000,000 shall be for carrying out the 
                bioenergy program under section 939, including 
                $175,000,000 for the biorefinery demonstration program 
                under section 939(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 940, including $5,000,000 for the 
                facility described in section 940(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 941; and
                    (E) $200,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 942.
            (5) For fiscal year 2010, $1,125,000,000, of which--
                    (A) $300,000,000 shall be for carrying out the 
                solar program under section 938;
                    (B) $400,000,000 shall be for carrying out the 
                bioenergy program under section 939, including 
                $200,000,000 for the biorefinery demonstration program 
                under section 939(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 940, including $1,000,000 for the 
                facility described in section 940(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 941; and
                    (E) $300,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 942.

                  Subtitle E--Nuclear Energy Programs

SEC. 946. DEFINITION.

    In this subtitle, the term ``junior faculty'' means a faculty 
member who was awarded a doctorate less than 10 years before receipt of 
an award from the grant program described in section 949(b)(2).

SEC. 947. PROGRAMS.

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

              CHAPTER 1--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 948. ADVANCED FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary shall conduct an advanced fuel 
recycling technology research, development, demonstration, and 
commercial application program to evaluate fuel recycling or 
transmutation technologies which are proliferation-resistant and 
minimize environmental and public health and safety impacts, as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act, in support of evaluation of alternative 
national strategies for spent nuclear fuel and advanced reactor 
concepts. The program shall be subject to annual review by the 
Secretary's Nuclear Energy Research Advisory Committee or other 
independent entity, as appropriate.
    (b) International Cooperation.--The Secretary shall seek 
opportunities to engage international partners with expertise in 
advanced fuel recycling technologies where such partnerships may help 
achieve program goals.

SEC. 949. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

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

SEC. 950. UNIVERSITY-NATIONAL LABORATORY INTERACTIONS.

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

SEC. 951. NUCLEAR POWER 2010 PROGRAM.

    The Secretary shall carry out a Nuclear Power 2010 Program, 
consistent with recommendations in the October 2001 report entitled ``A 
Roadmap to Deploy New Nuclear Power Plants in the United States by 
2010'' issued by the Nuclear Energy Research Advisory Committee of the 
Department. The Program shall include--
            (1) the expertise and capabilities of industry, 
        universities, and National Laboratories in evaluation of 
        advanced nuclear fuel cycles and fuels testing;
            (2) a variety of reactor designs suitable for both 
        developed and developing nations;
            (3) participation of international collaborators in 
        research, development, and design efforts as appropriate; and
            (4) university and industry participation.

SEC. 952. GENERATION IV NUCLEAR ENERGY SYSTEMS INITIATIVE.

    The Secretary shall carry out a Generation IV Nuclear Energy 
Systems Initiative to develop an overall technology plan and to support 
research, development, demonstration, and commercial application 
necessary to make an informed technical decision about the most 
promising candidates for the eventual commercial application of 
advanced fission reactor technology for the generation of electricity. 
The Initiative shall examine advanced proliferation-resistant and 
passively safe reactor designs, including designs that--
            (1) are economically competitive with other electric power 
        generation plants;
            (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (3) use fuels that are proliferation-resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (4) use improved instrumentation.

SEC. 953. CIVILIAN INFRASTRUCTURE AND FACILITIES.

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

SEC. 954. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT INFRASTRUCTURE PLAN.

    In carrying out section 919, 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.

SEC. 955. IDAHO NATIONAL LABORATORY FACILITIES PLAN.

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

SEC. 956. AUTHORIZATION OF APPROPRIATIONS.

    (a) Program Authorization.--The following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
chapter:
            (1) $407,000,000 for fiscal year 2006.
            (2) $427,000,000 for fiscal year 2007.
            (3) $449,000,000 for fiscal year 2008.
            (4) $471,000,000 for fiscal year 2009.
            (5) $495,000,000 for fiscal year 2010.
    (b) University Support.--Of the funds authorized under subsection 
(a), the following sums are authorized to be appropriated to carry out 
section 949:
            (1) $35,200,000 for fiscal year 2006.
            (2) $44,350,000 for fiscal year 2007.
            (3) $49,200,000 for fiscal year 2008.
            (4) $55,000,000 for fiscal year 2009.
            (5) $60,000,000 for fiscal year 2010.

            CHAPTER 2--NEXT GENERATION NUCLEAR PLANT PROGRAM

SEC. 957. DEFINITIONS.

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

SEC. 958. NEXT GENERATION NUCLEAR POWER PLANT.

    (a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of advanced 
nuclear fission reactor technology. The objective of this program shall 
be to demonstrate the technical and economic feasibility of an advanced 
nuclear fission reactor power plant design for the commercial 
production of electricity.
    (b) Research and Development.--The program shall include research, 
development, design, planning, and all other necessary activities to 
support the construction and operation of the demonstration plant.
    (c) Subsystem Demonstrations.--The Secretary shall support 
demonstration of enabling technologies and subsystems and other 
research, development, demonstration, and commercial application 
activities necessary to support the activities in this chapter.
    (d) Construction and Operation.--The program shall culminate in the 
construction and operation of the demonstration plant based on a design 
selected by the Secretary in accordance with procedures described in 
the plan required by section 960(c). The demonstration plant shall be 
located and constructed within the United States and shall be 
operational, and capable of demonstrating the commercial production of 
electricity, by December 31, 2015.
    (e) Limitation.--No funds shall be expended for the construction or 
operation of the demonstration plant until 90 days have elapsed after 
the transmission of the plan described in section 960(c).

SEC. 959. ADVISORY COMMITTEE.

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

SEC. 960. PROGRAM REQUIREMENTS.

    (a) Partnerships.--In carrying out the program under this chapter, 
the Secretary shall make use of partnerships with industry for the 
research, development, design, construction, and operation of the 
demonstration plant. In establishing such partnerships, the Secretary 
shall give preference to companies for which the principal base of 
operations is located in the United States.
    (b) International Collaboration.--(1) The Secretary shall seek 
international cooperation, participation, and financial contribution in 
this program, including assistance from specialists or facilities from 
member countries of the Generation IV International Forum, the Russian 
Federation, or other international partners where such specialists or 
facilities provide access to cost-effective and relevant skills or test 
capabilities.
    (2) International activities shall be carried out in consultation 
with the Generation IV International Forum.
    (3) The program may include demonstration of selected program 
objectives in a partner nation.
    (c) Program Plan.--Not later than one year after the date of 
enactment of this Act, the Secretary shall transmit to Congress a 
comprehensive program plan. The program plan shall--
            (1) describe the plan for development, selection, 
        management, ownership, operation, and decommissioning of the 
        demonstration plant;
            (2) identify program milestones and a timeline for 
        achieving these milestones;
            (3) provide for development of risk-based criteria for any 
        future commercial development of a reactor architecture based 
        on that of the demonstration plant;
            (4) include a projected budget required to meet the 
        milestones; and
            (5) include an explanation of any major program decisions 
        that deviate from program advice given to the Secretary by the 
        advisory committee established under section 959.

SEC. 961. AUTHORIZATION OF APPROPRIATIONS.

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

                       Subtitle F--Fossil Energy

                      CHAPTER 1--RESEARCH PROGRAMS

SEC. 962. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT PROGRAMS.

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

SEC. 963. FOSSIL RESEARCH AND DEVELOPMENT.

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

SEC. 964. OIL AND GAS RESEARCH AND DEVELOPMENT.

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

SEC. 965. TRANSPORTATION FUELS.

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

SEC. 966. FUEL CELLS.

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

SEC. 967. CARBON DIOXIDE CAPTURE RESEARCH AND DEVELOPMENT.

    (a) Program.--The Secretary of Energy shall support a 10-year 
program of research and development aimed at developing carbon dioxide 
capture technologies for pulverized coal combustion units. The program 
shall focus on--
            (1) developing add-on carbon dioxide capture technologies, 
        such as adsorption and absorption techniques and chemical 
        processes, to remove carbon dioxide from flue gas, producing 
        concentrated streams of carbon dioxide potentially amenable to 
        sequestration;
            (2) combustion technologies that would directly produce 
        concentrated streams of carbon dioxide potentially amenable to 
        sequestration; and
            (3) increasing the efficiency of the overall combustion 
        system in order to reduce the amount of carbon dioxide 
        emissions released from the system per megawatt generated.
    (b) Carbon Sequestration.--In conjunction with the program under 
subsection (a), the Secretary shall continue pursuing a robust carbon 
sequestration program with the private sector, through regional carbon 
sequestration partnerships.

SEC. 968. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
chapter:
            (1) For fiscal year 2006, $583,000,000.
            (2) For fiscal year 2007, $611,000,000.
            (3) For fiscal year 2008, $626,000,000.
            (4) For fiscal year 2009, $641,000,000.
            (5) For fiscal year 2010, $657,000,000.
    (b) Allocation.--From amounts authorized under subsection (a), 
there are authorized to be appropriated for carrying out the program 
under section 967--
            (1) $20,000,000 for fiscal year 2006;
            (2) $25,000,000 for fiscal year 2007;
            (3) $30,000,000 for fiscal year 2008;
            (4) $35,000,000 for fiscal year 2009; and
            (5) $40,000,000 for fiscal year 2010.

  CHAPTER 2--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 969. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program under this 
chapter 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 chapter 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 United States Department of 
        Energy.
    (c) Limitation on Location of Field Activities.--Field activities 
under the program under this chapter 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 part, the Secretary shall consult regularly with the Secretary of 
the Interior.

SEC. 970. 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 969, 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 
        consortium to--
                    (A) manage awards pursuant to subsection (f)(3);
                    (B) issue project solicitations upon approval of 
                the Secretary;
                    (C) make project awards upon approval of the 
                Secretary;
                    (D) disburse funds 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) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986 on the date of enactment of this Act.
            (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 976(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 976(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 976(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.
            (8) Criterion.--The Secretary shall consider the amount of 
        the fee an applicant proposes to receive under subsection (g) 
        in selecting a consortium under this section.
    (e) Annual Plan.--
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--
                    (A) Solicitation of recommendations.--Before 
                drafting an annual plan under this subsection, the 
                Secretary shall solicit specific written 
                recommendations from the program consortium for each 
                element to be addressed in the plan, including those 
                described in paragraph (4). The 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 
                972(a) and to the Unconventional Resources Technology 
                Advisory Committee established under section 972(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 
        part. The initial report under this paragraph shall be 
        submitted in the first President's budget following the 
        completion of the first annual plan required under this 
        subsection.
    (f) Awards.--
            (1) In general.--Upon approval of the Secretary the program 
        consortium shall make awards to carry out research, 
        development, demonstration, and commercial application 
        activities under the program under this section. The program 
        consortium shall not be eligible to receive such awards, but 
        members of the program consortium may receive such awards.
            (2) Proposals.--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, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report annually 
to the Secretary, who shall transmit the report to Congress, along with 
a plan to remedy any deficiencies cited in the report.
    (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.

SEC. 971. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award under this 
chapter 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 969(c), a demonstration project under this 
chapter 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 
chapter is made to a consortium (other than the program consortium), 
the consortium shall provide to the Secretary a signed contract agreed 
to by all members of the consortium describing the rights of each 
member to intellectual property used or developed under the award.
    (d) Technology Transfer.--2.5 percent of the amount of each award 
made under this chapter shall be designated for technology transfer and 
outreach activities under this chapter.
    (e) Cost Sharing Reduction for Independent Producers.--In applying 
the cost sharing requirements under section 911 to an award under this 
chapter the Secretary may reduce or eliminate the non-Federal 
requirement if the Secretary determines that the reduction is necessary 
and appropriate considering the technological risks involved in the 
project.

SEC. 972. 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 chapter related 
                to ultra-deepwater natural gas and other petroleum 
                resources; and
                    (B) carry out section 970(e)(2)(B).
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses in accordance with applicable 
        provisions under subchapter I of chapter 57 of title 5, United 
        States Code.
    (b) Unconventional Resources Technology Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this Act, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary including--
                    (A) a majority of members who are employees or 
                representatives of independent producers of natural gas 
                and other petroleum, including small producers;
                    (B) individuals with extensive research experience 
                or operational knowledge of unconventional natural gas 
                and other petroleum resource exploration and 
                production;
                    (C) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations;
                    (D) no individuals who are Federal employees; and
                    (E) 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 chapter related 
                to unconventional natural gas and other petroleum 
                resources; and
                    (B) carry out section 970(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. 973. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this chapter 
only if the Secretary finds--
            (1) that the entity's participation in the program under 
        this chapter 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 part;
                            (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. 974. SUNSET.

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

SEC. 975. DEFINITIONS.

    In this part:
            (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (2) Independent producer of oil or gas.--
                    (A) In general.--The term ``independent producer of 
                oil or gas'' means any person that produces oil or gas 
                other than a person to whom subsection (c) of section 
                613A of the Internal Revenue Code of 1986 does not 
                apply by reason of paragraph (2) (relating to certain 
                retailers) or paragraph (4) (relating to certain 
                refiners) of section 613A(d) of such Code.
                    (B) Rules for applying paragraphs (2) and (4) of 
                section 613a(d).--For purposes of subparagraph (A), 
                paragraphs (2) and (4) of section 613A(d) of the 
                Internal Revenue Code of 1986 shall be applied by 
                substituting ``calendar year'' for ``taxable year'' 
                each place it appears in such paragraphs.
            (3) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 970(d).
            (4) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
            (5) Small producer.--The term ``small producer'' means an 
        entity organized under the laws of the United States with 
        production levels of less than 1,000 barrels per day of oil 
        equivalent.
            (6) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (7) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        for the exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (8) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address 1 or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (9) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation, including resources of small producers.

SEC. 976. FUNDING.

    (a) In General.--
            (1) Oil and gas lease income.--For each of fiscal years 
        2005 through 2014, from any excess Federal royalties derived 
        from Federal onshore and offshore oil and gas leases issued 
        under the Outer Continental Shelf Lands Act and the Mineral 
        Leasing Act which are deposited in the Treasury, and after 
        prior distributions as described in subsection (c) have been 
        made, all excess Federal royalties up to $200,000,000 shall be 
        deposited into the Ultra-Deepwater and Unconventional Natural 
        Gas and Other Petroleum Research Fund (in this section referred 
        to as the Fund).
            (2) Definitions.--For purposes of paragraph (1)--
                    (A) excess Federal royalty receipts are the amount 
                calculated on the basis of the difference between the 
                prevailing market prices upon which the royalty payment 
                was made and 110 percent of the projected market prices 
                for that fiscal year, as contained in the economic 
                assumptions underlying the Concurrent Resolution on the 
                Budget, under section 301 of the Congressional Budget 
                and Impoundment Control Act or 1974; and
                    (B) 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 chapter without fiscal year 
limitation, to remain available until expended.
    (c) Prior Distributions.--The distributions described in subsection 
(a) are those required by law--
            (1) to States and to the Reclamation Fund under the Mineral 
        Leasing Act (30 U.S.C. 191(a)); and
            (2) to other funds receiving monies from Federal oil and 
        gas leasing programs, including--
                    (A) any recipients pursuant to section 8(g) of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1337(g));
                    (B) the Land and Water Conservation Fund, pursuant 
                to section 2(c) of the Land and Water Conservation Fund 
                Act of 1965 (16 U.S.C. 4601-5(c));
                    (C) the Historic Preservation Fund, pursuant to 
                section 108 of the National Historic Preservation Act 
                (16 U.S.C. 470h); and
                    (D) the Secure Energy Reinvestment Fund.
    (d) Allocation.--Amounts obligated from the Fund under subsection 
(a)(1) in each fiscal year shall be allocated as follows:
            (1) 35 percent shall be for activities under section 
        969(b)(1).
            (2) 32.5 percent shall be for activities under section 
        969(b)(2).
            (3) 7.5 percent shall be for activities under section 
        969(b)(3).
            (4) 25 percent shall be for complementary research under 
        section 969(b)(4) and other activities under section 969(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 subsection 969(b)(4) are technically complementary 
        to, and not duplicative of, research conducted under section 
        969(b)(1), (2), and (3).
    (e) Fund.--There is hereby established in the Treasury of the 
United States a separate fund to be known as the ``Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Research Fund''.

 Subtitle G--Improved Coordination and Management of Civilian Science 
                        and Technology Programs

SEC. 978. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (42 
U.S.C. 7139) is amended to read as follows:

                          ``office of science

    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary of Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary of Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
    (b) Additional Assistant Secretary Position to Enable Improved 
Management of Nuclear Energy Issues.--(1) Section 203(a) of the 
Department of Energy Organization Act (42 U.S.C. 7133(a)) is amended by 
striking ``There shall be in the Department six Assistant Secretaries'' 
and inserting ``Except as provided in section 209, there shall be in 
the Department seven Assistant Secretaries''.
    (2) It is the sense of the Congress that the leadership for 
departmental missions in nuclear energy should be at the Assistant 
Secretary level.
    (c) Technical and Conforming Amendments.--(1) Section 5315 of title 
5, United States Code, is amended by--
            (A) striking ``Director, Office of Science, Department of 
        Energy.''; and
            (B) striking ``Assistant Secretaries of Energy (6)'' and 
        inserting ``Assistant Secretaries of Energy (8)''.
    (2) The table of contents for the Department of Energy Organization 
Act (42 U.S.C. 7101 note) is amended--
            (A) by striking ``Section 209'' and inserting ``Sec. 209'';
            (B) by striking ``213.'' and inserting ``Sec. 213.'';
            (C) by striking ``214.'' and inserting ``Sec. 214.'';
            (D) by striking ``215.'' and inserting ``Sec. 215.''; and
            (E) by striking ``216.'' and inserting ``Sec. 216.''.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1002. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act (42 U.S.C. 
7256) is amended by adding at the end the following:
    ``(g)(1) In addition to other authorities granted to the Secretary 
under law, the Secretary may exercise the same authority (subject to 
the same restrictions and conditions) with respect to such research and 
projects as the Secretary of Defense may exercise under section 2371 of 
title 10, United States Code, except for subsections (b) and (f) of 
such section 2371. Such other transactions shall not be subject to the 
provisions of section 9 of the Federal Nonnuclear Energy Research and 
Development Act of 1974 (42 U.S.C. 5908) or section 152 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2182).
    ``(2)(A) The Secretary may, under the authority of paragraph (1), 
carry out prototype projects in accordance with the requirements and 
conditions provided for carrying out prototype projects under section 
845 of the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160; 10 U.S.C. 2371 note), including that, to the 
maximum extent practicable, competitive procedures shall be used when 
entering into agreements to carry out projects under subsection (a) of 
that section and that the period of authority to carry out projects 
under such subsection (a) terminates as provided in subsection (g) of 
that section.
    ``(B) In applying the requirements and conditions of section 845 of 
the National Defense Authorization Act for Fiscal Year 1994 under this 
subsection--
            ``(i) subsection (c) of that section shall apply with 
        respect to prototype projects carried out under this paragraph; 
        and
            ``(ii) the Director of the Office of Management and Budget 
        shall perform the functions of the Secretary of Defense under 
        subsection (d) of that section.
    ``(C) The Secretary may exercise authority under this subsection 
for a project only if authorized by the Director of the Office of 
Management and Budget to use the authority for such project.
    ``(D) The annual report of the head of an executive agency that is 
required under subsection (h) of section 2371 of title 10, United 
States Code, as applied to the head of the executive agency by 
subsection (a), shall be submitted to Congress.
    ``(3) Not later than 90 days after the date of enactment of this 
subsection, the Secretary, in consultation with the Director of the 
Office of Management and Budget, shall prescribe guidelines for using 
other transactions authorized by paragraph (1). Such guidelines shall 
be published in the Federal Register for public comment under 
rulemaking procedures of the Department.
    ``(4) The authority of the Secretary under this subsection may be 
delegated only to an officer of the Department who is appointed by the 
President by and with the advice and consent of the Senate and may not 
be delegated to any other person.
    ``(5)(A) Not later than September 31, 2006, the Comptroller General 
of the United States shall report to Congress on the Department's use 
of the authorities granted under this section, including the ability to 
attract nontraditional government contractors and whether additional 
safeguards are needed with respect to the use of such authorities.
    ``(B) In this section, the term `nontraditional Government 
contractor' has the same meaning as the term `nontraditional defense 
contractor' as defined in section 845(e) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 
2371 note).''.

SEC. 1003. UNIVERSITY COLLABORATION.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary of Energy 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. 1004. SENSE OF CONGRESS.

     It is the sense of the Congress that--
            (1) the Secretary of Energy 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 of Energy; 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 XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Electric Reliability 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 1 or more of such 
        components may adversely affect the ability of the operators of 
        other components within the system to maintain reliable 
        operation of the facilities within their control.
            ``(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 1 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.
        The total amount of all dues, fees, and other charges collected 
        by the ERO in each of the fiscal years 2006 through 2015 and 
        allocated under subparagraph (B) shall not exceed $50,000,000.
    ``(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 \2/3\ of the States 
within a region that have more than \1/2\ of their electric load served 
within the region. A regional advisory body shall be composed of 1 
member from each participating State in the region, appointed by the 
Governor of each State, and may include representatives of agencies, 
States, and provinces outside the United States. A regional advisory 
body may provide advice to the Electric Reliability Organization, a 
regional entity, or the Commission regarding the governance of an 
existing or proposed regional entity within the same region, whether a 
standard proposed to apply within the region is just, reasonable, not 
unduly discriminatory or preferential, and in the public interest, 
whether fees proposed to be assessed within the region are just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest and any other responsibilities requested by the 
Commission. The Commission may give deference to the advice of any such 
regional advisory body if that body is organized on an Interconnection-
wide basis.
    ``(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) Limitation on Annual Appropriations.--There is authorized to be 
appropriated not more than $50,000,000 per year for fiscal years 2006 
through 2015 for all activities under the amendment made by subsection 
(a).

         Subtitle B--Transmission Infrastructure Modernization

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    (a) Amendment of Federal Power Act.--Part II of the Federal Power 
Act 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) Transmission congestion study.--Within 1 year after 
        the enactment of this section, and every 3 years thereafter, 
        the Secretary of Energy, in consultation with affected States, 
        shall conduct a study of electric transmission congestion. 
        After considering alternatives and recommendations from 
        interested parties, including an opportunity for comment from 
        affected States, the Secretary shall issue a report, based on 
        such study, which may designate any geographic area 
        experiencing electric energy transmission capacity constraints 
        or congestion that adversely affects consumers as a national 
        interest electric transmission corridor. The Secretary shall 
        conduct the study and issue the report in consultation with any 
        appropriate regional entity referenced in section 215 of this 
        Act.
            ``(2) Considerations.--In determining whether to designate 
        a national interest electric transmission corridor referred to 
        in paragraph (1) under this section, 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 is authorized, after notice and an opportunity for 
hearing, to issue a permit or permits for the construction or 
modification of electric transmission facilities in a national interest 
electric transmission corridor designated by the Secretary under 
subsection (a) if the Commission finds that--
            ``(1)(A) a State in which the transmission facilities are 
        to be constructed or modified is without 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 pursuant to applicable law 
                seeking approval 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; and
            ``(5) the proposed construction or modification is 
        consistent with sound national energy policy and will enhance 
        energy independence.
    ``(c) Permit Applications.--Permit applications under subsection 
(b) shall be made in writing to the Commission. The Commission shall 
issue rules setting forth the form of the application, the information 
to be contained in the application, and the manner of service of notice 
of the permit application upon interested persons.
    ``(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.--In the case of a permit under subsection (b) 
for electric transmission facilities to be located on property other 
than property owned by the United States or a State, if the permit 
holder cannot acquire by contract, or is unable to agree with the owner 
of the property to the compensation to be paid for, the necessary 
right-of-way to construct or modify such transmission facilities, the 
permit holder may acquire the right-of-way by the exercise of the right 
of eminent domain in the district court of the United States for the 
district in which the property concerned is located, or in the 
appropriate court of the State in which the property is located. The 
practice and procedure in any action or proceeding for that purpose in 
the district court of the United States shall conform as nearly as may 
be with the practice and procedure in similar action or proceeding in 
the courts of the State where the property is situated.
    ``(f) State Law.--Nothing in this section shall preclude any person 
from constructing or modifying any transmission facility pursuant to 
State law.
    ``(g) Compensation.--Any exercise of eminent domain authority 
pursuant to this section shall be considered a taking of private 
property for which just compensation is due. Just compensation shall be 
an amount equal to the full fair market value of the property taken on 
the date of the exercise of eminent domain authority, except that the 
compensation shall exceed fair market value if necessary to make the 
landowner whole for decreases in the value of any portion of the land 
not subject to eminent domain. Any parcel of land acquired by eminent 
domain under this subsection shall be transferred back to the owner 
from whom it was acquired (or his heirs or assigns) if the land is not 
used for the construction or modification of electric transmission 
facilities within a reasonable period of time after the acquisition. 
Other than construction, modification, operation, or maintenance of 
electric transmission facilities and related facilities, property 
acquired under subsection (e) may not be used for any purpose 
(including use for any heritage area, recreational trail, or park) 
without the consent of the owner of the parcel from whom the property 
was acquired (or the owner's heirs or assigns).
    ``(h) Coordination of Federal Authorizations for Transmission and 
Distribution Facilities.--
            ``(1) Lead agency.--If an applicant, or prospective 
        applicant, for a Federal authorization related to an electric 
        transmission or distribution facility so requests, the 
        Department of Energy (DOE) shall act as the lead agency for 
        purposes of coordinating all applicable Federal authorizations 
        and related environmental reviews of the facility. For purposes 
        of this subsection, the term `Federal authorization' means any 
        authorization required under Federal law in order to site a 
        transmission or distribution facility, including but not 
        limited to such permits, special use authorizations, 
        certifications, opinions, or other approvals as may be 
        required, whether issued by a Federal or a State agency. To the 
        maximum extent practicable under applicable Federal law, the 
        Secretary of Energy shall coordinate this Federal authorization 
        and review process with any Indian tribes, multi-State 
        entities, and State agencies that are responsible for 
        conducting any separate permitting and environmental reviews of 
        the facility, to ensure timely and efficient review and permit 
        decisions.
            ``(2) Authority to set deadlines.--As lead agency, the 
        Department of Energy, in consultation with agencies responsible 
        for Federal authorizations and, as appropriate, with Indian 
        tribes, multi-State entities, and State agencies that are 
        willing to coordinate their own separate permitting and 
        environmental reviews with the Federal authorization and 
        environmental reviews, shall establish prompt and binding 
        intermediate milestones and ultimate deadlines for the review 
        of, and Federal authorization decisions relating to, the 
        proposed facility. The Secretary of Energy shall ensure that 
        once an application has been submitted with such data as the 
        Secretary considers necessary, all permit decisions and related 
        environmental reviews under all applicable Federal laws shall 
        be completed within 1 year or, if a requirement of another 
        provision of Federal law makes this impossible, as soon 
        thereafter as is practicable. The Secretary of Energy also 
        shall provide an expeditious pre-application mechanism for 
        prospective applicants to confer with the agencies involved to 
        have each such agency determine and communicate to the 
        prospective applicant within 60 days of when the prospective 
        applicant submits a request for such information concerning--
                    ``(A) the likelihood of approval for a potential 
                facility; and
                    ``(B) key issues of concern to the agencies and 
                public.
            ``(3) Consolidated environmental review and record of 
        decision.--As lead agency head, the Secretary of Energy, in 
        consultation with the affected agencies, shall prepare a single 
        environmental review document, which shall be used as the basis 
        for all decisions on the proposed project under Federal law. 
        The document may be an environmental assessment or 
        environmental impact statement under the National Environmental 
        Policy Act of 1969 if warranted, or such other form of analysis 
        as may be warranted. The Secretary of Energy and the heads of 
        other agencies shall streamline the review and permitting of 
        transmission and distribution facilities within corridors 
        designated under section 503 of the Federal Land Policy and 
        Management Act (43 U.S.C. 1763) by fully taking into account 
        prior analyses and decisions relating to the corridors. Such 
        document shall include consideration by the relevant agencies 
        of any applicable criteria or other matters as required under 
        applicable laws.
            ``(4) Appeals.--In the event that any agency has denied a 
        Federal authorization required for a transmission or 
        distribution facility, or has failed to act by the deadline 
        established by the Secretary pursuant to this section for 
        deciding whether to issue the authorization, the applicant or 
        any State in which the facility would be located may file an 
        appeal with the Secretary, who shall, in consultation with the 
        affected agency, review the denial or take action on the 
        pending application. Based on the overall record and in 
        consultation with the affected agency, the Secretary may then 
        either issue the necessary authorization with any appropriate 
        conditions, or deny the application. The Secretary shall issue 
        a decision within 90 days of the filing of the appeal. In 
        making a decision under this paragraph, the Secretary shall 
        comply with applicable requirements of Federal law, including 
        any requirements of the Endangered Species Act, the Clean Water 
        Act, the National Forest Management Act, the National 
        Environmental Policy Act of 1969, and the Federal Land Policy 
        and Management Act.
            ``(5) Conforming regulations and memoranda of 
        understanding.--Not later than 18 months after the date of 
        enactment of this section, the Secretary of Energy shall issue 
        any regulations necessary to implement this subsection. Not 
        later than 1 year after the date of enactment of this section, 
        the Secretary and the heads of all Federal agencies with 
        authority to issue Federal authorizations shall enter into 
        Memoranda of Understanding to ensure the timely and coordinated 
        review and permitting of electricity transmission and 
        distribution facilities. The head of each Federal agency with 
        authority to issue a Federal authorization shall designate a 
        senior official responsible for, and dedicate sufficient other 
        staff and resources to ensure, full implementation of the DOE 
        regulations and any Memoranda. Interested Indian tribes, multi-
        State entities, and State agencies may enter such Memoranda of 
        Understanding.
            ``(6) Duration and renewal.--Each Federal land use 
        authorization for an electricity transmission or distribution 
        facility shall be issued--
                    ``(A) for a duration, as determined by the 
                Secretary of Energy, commensurate with the anticipated 
                use of the facility, and
                    ``(B) with appropriate authority to manage the 
                right-of-way for reliability and environmental 
                protection.
        Upon the expiration of any such authorization (including an 
        authorization issued prior to enactment of this section), the 
        authorization shall be reviewed for renewal taking fully into 
        account reliance on such electricity infrastructure, 
        recognizing its importance for public health, safety and 
        economic welfare and as a legitimate use of Federal lands.
            ``(7) Maintaining and enhancing the transmission 
        infrastructure.--In exercising the responsibilities under this 
        section, the Secretary of Energy shall consult regularly with 
        the Federal Energy Regulatory Commission (FERC), FERC-approved 
        electric reliability organizations (including related regional 
        entities), and FERC-approved Regional Transmission 
        Organizations and Independent System Operators.
    ``(i) Interstate Compacts.--The consent of Congress is hereby given 
for 3 or more contiguous States to enter into an interstate compact, 
subject to approval by Congress, establishing regional transmission 
siting agencies to facilitate siting of future electric energy 
transmission facilities within such States and to carry out the 
electric energy transmission siting responsibilities of such States. 
The Secretary of Energy may provide technical assistance to regional 
transmission siting agencies established under this subsection. Such 
regional transmission siting agencies shall have the authority to 
review, certify, and permit siting of transmission facilities, 
including facilities in national interest electric transmission 
corridors (other than facilities on property owned by the United 
States). The Commission shall have no authority to issue a permit for 
the construction or modification of electric transmission facilities 
within a State that is a party to a compact, unless the members of a 
compact are in disagreement and the Secretary makes, after notice and 
an opportunity for a hearing, the finding described in subsection 
(b)(1)(C).
    ``(j) Savings Clause.--Nothing in this section shall be construed 
to affect any requirement of the environmental laws of the United 
States, including, but not limited to, the National Environmental 
Policy Act of 1969. Subsection (h)(4) of this section shall not apply 
to any Congressionally-designated components of the National Wilderness 
Preservation System, the National Wild and Scenic Rivers System, or the 
National Park system (including National Monuments therein).
    ``(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.--The Secretary of the Interior, the Secretary of Energy, the 
Secretary of Agriculture, and the Chairman of the Council on 
Environmental Quality shall, within 90 days of the date of enactment of 
this subsection, submit a joint report to Congress identifying each of 
the following:
            (1) All existing designated transmission and distribution 
        corridors on Federal land and the status of work related to 
        proposed transmission and distribution corridor designations 
        under Title V of the Federal Land Policy and Management Act (43 
        U.S.C. 1761 et seq.), the schedule for completing such work, 
        any impediments to completing the work, and steps that Congress 
        could take to expedite the process.
            (2) The number of pending applications to locate 
        transmission and distribution facilities on Federal lands, key 
        information relating to each such facility, how long each 
        application has been pending, the schedule for issuing a timely 
        decision as to each facility, and progress in incorporating 
        existing and new such rights-of-way into relevant land use and 
        resource management plans or their equivalent.
            (3) The number of existing transmission and distribution 
        rights-of-way on Federal lands that will come up for renewal 
        within the following 5, 10, and 15 year periods, and a 
        description of how the Secretaries plan to manage such 
        renewals.

SEC. 1222. THIRD-PARTY FINANCE.

    (a) Existing Facilities.--The Secretary of Energy (hereinafter in 
this section referred to as 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 of Energy, 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 Regional Transmission Organization or 
                Independent System Operator (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 Regional Transmission Organization or 
                Independent System Operator, 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) Regional Transmission Organization or 
        Independent System Operator, 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. TRANSMISSION SYSTEM MONITORING.

    Within 6 months after the date of enactment of this Act, the 
Secretary of Energy and the Federal Energy Regulatory Commission shall 
study and report to Congress on the steps which must be taken to 
establish a system to make available to all transmission system owners 
and Regional Transmission Organizations (as defined in the Federal 
Power Act) within the Eastern and Western Interconnections real-time 
information on the functional status of all transmission lines within 
such Interconnections. In such study, the Commission shall assess 
technical means for implementing such transmission information system 
and identify the steps the Commission or Congress must take to require 
the implementation of such system.

SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES.

    (a) Authority.--The Federal Energy Regulatory Commission, in the 
exercise of its authorities under the Federal Power Act and the Public 
Utility Regulatory Policies Act of 1978, shall encourage the deployment 
of advanced transmission technologies.
    (b) Definition.--For the purposes of this section, the term 
``advanced transmission technologies'' means technologies that increase 
the capacity, efficiency, or reliability of existing or new 
transmission facilities, including, but not limited to--
            (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, 
        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); and
            (18) any other technologies the Commission considers 
        appropriate.
    (c) Obsolete or Impracticable Technologies.--The Commission is 
authorized to cease encouraging the deployment of any technology 
described in this section on a finding that such technology has been 
rendered obsolete or otherwise impracticable to deploy.

SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

    (a) Electric Transmission and Distribution Program.--The Secretary 
of Energy (hereinafter in this section referred to as the 
``Secretary'') acting through the Director of the Office of Electric 
Transmission and Distribution shall establish a comprehensive research, 
development, demonstration and commercial application program to 
promote improved reliability and efficiency of electrical transmission 
and distribution systems. This program shall include--
            (1) advanced energy delivery and storage technologies, 
        materials, and systems, including new transmission 
        technologies, such as flexible alternating current transmission 
        systems, composite conductor materials and other technologies 
        that enhance reliability, operational flexibility, or power-
        carrying capability;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) supply of electricity to the power grid by small scale, 
        distributed and residential-based power generators;
            (9) the development and use of advanced grid design, 
        operation and planning tools;
            (10) any other infrastructure technologies, as appropriate; 
        and
            (11) technology transfer and education.
    (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this legislation, the Secretary, in consultation with 
other appropriate Federal agencies, shall prepare and transmit to 
Congress a 5-year program plan to guide activities under this section. 
In preparing the program plan, the Secretary may consult with 
utilities, energy services providers, manufacturers, institutions of 
higher education, other appropriate State and local agencies, 
environmental organizations, professional and technical societies, and 
any other persons the Secretary considers appropriate.
    (c) Implementation.--The Secretary shall consider implementing this 
program using a consortium of industry, university and national 
laboratory participants.
    (d) Report.--Not later than 2 years after the transmittal of the 
plan under subsection (b), the Secretary shall transmit a report to 
Congress describing the progress made under this section and 
identifying any additional resources needed to continue the development 
and commercial application of transmission and distribution 
infrastructure technologies.
    (e) Power Delivery Research Initiative.--
            (1) In general.--The Secretary shall establish a research, 
        development, demonstration, and commercial application 
        initiative specifically focused on power delivery utilizing 
        components incorporating high temperature superconductivity.
            (2) Goals.--The goals of this initiative shall be to--
                    (A) establish facilities to develop high 
                temperature superconductivity power applications in 
                partnership with manufacturers and utilities;
                    (B) provide technical leadership for establishing 
                reliability for high temperature superconductivity 
                power applications including suitable modeling and 
                analysis;
                    (C) facilitate commercial transition toward direct 
                current power transmission, storage, and use for high 
                power systems utilizing high temperature 
                superconductivity; and
                    (D) facilitate the integration of very low 
                impedance high temperature superconducting wires and 
                cables in existing electric networks to improve system 
                performance, power flow control and reliability.
            (3) Requirements.--The initiative shall include--
                    (A) feasibility analysis, planning, research, and 
                design to construct demonstrations of superconducting 
                links in high power, direct current and controllable 
                alternating current transmission systems;
                    (B) public-private partnerships to demonstrate 
                deployment of high temperature superconducting cable 
                into testbeds simulating a realistic transmission grid 
                and under varying transmission conditions, including 
                actual grid insertions; and
                    (C) testbeds developed in cooperation with national 
                laboratories, industries, and universities to 
                demonstrate these technologies, prepare the 
                technologies for commercial introduction, and address 
                cost or performance roadblocks to successful commercial 
                use.
            (4) Authorization of appropriations.--For purposes of 
        carrying out this subsection, there are authorized to be 
        appropriated--
                    (A) for fiscal year 2006, $15,000,000;
                    (B) for fiscal year 2007, $20,000,000;
                    (C) for fiscal year 2008, $30,000,000;
                    (D) for fiscal year 2009, $35,000,000; and
                    (E) for fiscal year 2010, $40,000,000.

SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

    (a) Program.--The Secretary of Energy is authorized to establish an 
Advanced Power System Technology Incentive Program to support the 
deployment of certain advanced power system technologies and to improve 
and protect certain critical governmental, industrial, and commercial 
processes. Funds provided under this section shall be used by the 
Secretary to make incentive payments to eligible owners or operators of 
advanced power system technologies to increase power generation through 
enhanced operational, economic, and environmental performance. Payments 
under this section may only be made upon receipt by the Secretary of an 
incentive payment application establishing an applicant as either--
            (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 of Energy, in consultation with the Secretary 
        of Homeland Security, to be in critical need of secure, 
        reliable, rapidly available, high-quality power for critical 
        governmental, industrial, or commercial applications.
    (d) Authorization.--There are authorized to be appropriated to the 
Secretary of Energy for the purposes of this section, $10,000,000 for 
each of the fiscal years 2006 through 2012.

SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    (a) Creation of an Office of Electric Transmission and 
Distribution.--Title II of the Department of Energy Organization Act 
(42 U.S.C. 7131 et seq.) (as amended by section 502(a) of this Act) is 
amended by inserting the following after section 217, as added by title 
V of this Act:

``SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    ``(a) Establishment.--There is established within the Department an 
Office of Electric Transmission and Distribution. This Office shall be 
headed by a Director, subject to the authority of the Secretary. The 
Director shall be appointed by the Secretary. The Director shall be 
compensated at the annual rate prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code.
    ``(b) Director.--The Director shall--
            ``(1) coordinate and develop a comprehensive, multi-year 
        strategy to improve the Nation's electricity transmission and 
        distribution;
            ``(2) implement or, where appropriate, coordinate the 
        implementation of, the recommendations made in the Secretary's 
        May 2002 National Transmission Grid Study;
            ``(3) oversee research, development, and demonstration to 
        support Federal energy policy related to electricity 
        transmission and distribution;
            ``(4) grant authorizations for electricity import and 
        export pursuant to section 202(c), (d), (e), and (f) of the 
        Federal Power Act (16 U.S.C. 824a);
            ``(5) perform other functions, assigned by the Secretary, 
        related to electricity transmission and distribution; and
            ``(6) develop programs for workforce training in power and 
        transmission engineering.''.
    (b) Conforming Amendments.--(1) The table of contents of the 
Department of Energy Organization Act (42 U.S.C. 7101 note) is amended 
by inserting after the item relating to section 217 the following new 
item:

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

            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 the following new section:

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

    ``(a) Transmission 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 such unregulated 
        transmitting utility provides transmission services to itself 
        and that are not unduly discriminatory or preferential.
    ``(b) Exemption.--The Commission shall exempt from any rule or 
order under this section any unregulated transmitting utility that--
            ``(1) sells no more than 4,000,000 megawatt hours of 
        electricity per year; or
            ``(2) does not own or operate any transmission facilities 
        that are necessary for operating an interconnected transmission 
        system (or any portion thereof); or
            ``(3) meets other criteria the Commission determines to be 
        in the public interest.
    ``(c) Local Distribution Facilities.--The requirements of 
subsection (a) shall not apply to facilities used in local 
distribution.
    ``(d) Exemption Termination.--Whenever the Commission, after an 
evidentiary hearing held upon a complaint and after giving 
consideration to reliability standards established under section 215, 
finds on the basis of a preponderance of the evidence that any 
exemption granted pursuant to subsection (b) unreasonably impairs the 
continued reliability of an interconnected transmission system, it 
shall revoke the exemption granted to that transmitting utility.
    ``(e) 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.
    ``(f) Remand.--In exercising its authority under paragraph (1) of 
subsection (a), the Commission may remand transmission rates to an 
unregulated transmitting utility for review and revision where 
necessary to meet the requirements of subsection (a).
    ``(g) Other Requests.--The provision of transmission services under 
subsection (a) does not preclude a request for transmission services 
under section 211.
    ``(h) 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 (26 U.S.C. 141).
    ``(i) 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 an RTO or any other Commission-approved 
independent transmission organization designated to provide 
nondiscriminatory transmission access.
    ``(j) Definition.--For purposes of 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).''.

SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANSMISSION ORGANIZATIONS.

    It is the sense of Congress that, in order to promote fair, open 
access to electric transmission service, benefit retail consumers, 
facilitate wholesale competition, improve efficiencies in transmission 
grid management, promote grid reliability, remove opportunities for 
unduly discriminatory or preferential transmission practices, and 
provide for the efficient development of transmission infrastructure 
needed to meet the growing demands of competitive wholesale power 
markets, all transmitting utilities in interstate commerce should 
voluntarily become members of Regional Transmission Organizations as 
defined in section 3 of the Federal Power Act.

SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION APPLICATIONS PROGRESS 
              REPORT.

    Not later than 120 days after the date of enactment of this 
section, the Federal Energy Regulatory Commission shall submit to 
Congress a report containing each of the following:
            (1) A list of all regional transmission organization 
        applications filed at the Commission pursuant to subpart F of 
        part 35 of title 18, Code of Federal Regulations (in this 
        section referred to as ``Order No. 2000''), including an 
        identification of each public utility and other entity included 
        within the proposed membership of the regional transmission 
        organization.
            (2) A brief description of the status of each pending 
        regional transmission organization application, including a 
        precise explanation of how each fails to comply with the 
        minimal requirements of Order No. 2000 and what steps need to 
        be taken to bring each application into such compliance.
            (3) For any application that has not been finally approved 
        by the Commission, a detailed description of every aspect of 
        the application that the Commission has determined does not 
        conform to the requirements of Order No. 2000.
            (4) For any application that has not been finally approved 
        by the Commission, an explanation by the Commission of why the 
        items described pursuant to paragraph (3) constitute material 
        noncompliance with the requirements of the Commission's Order 
        No. 2000 sufficient to justify denial of approval by the 
        Commission.
            (5) For all regional transmission organization applications 
        filed pursuant to the Commission's Order No. 2000, whether 
        finally approved or not--
                    (A) a discussion of that regional transmission 
                organization's efforts to minimize rate seams between 
                itself and--
                            (i) other regional transmission 
                        organizations; and
                            (ii) entities not participating in a 
                        regional transmission organization;
                    (B) a discussion of the impact of such seams on 
                consumers and wholesale competition; and
                    (C) a discussion of minimizing cost-shifting on 
                consumers.

SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
              ORGANIZATIONS.

    (a) Definitions.--For purposes of this section--
            (1) Appropriate federal regulatory authority.--The term 
        ``appropriate Federal regulatory authority'' means--
                    (A) with respect to a Federal power marketing 
                agency (as defined in the Federal Power Act), the 
                Secretary of Energy, except that the Secretary may 
                designate the Administrator of a Federal power 
                marketing agency to act as the appropriate Federal 
                regulatory authority with respect to the transmission 
                system of that Federal power marketing agency; and
                    (B) with respect to the Tennessee Valley Authority, 
                the Board of Directors of the Tennessee Valley 
                Authority.
            (2) Federal utility.--The term ``Federal utility'' means a 
        Federal power marketing agency or the Tennessee Valley 
        Authority.
            (3) Transmission system.--The term ``transmission system'' 
        means electric transmission facilities owned, leased, or 
        contracted for by the United States and operated by a Federal 
        utility.
    (b) Transfer.--The appropriate Federal regulatory authority is 
authorized to enter into a contract, agreement or other arrangement 
transferring control and use of all or part of the Federal utility's 
transmission system to an RTO or ISO (as defined in the Federal Power 
Act), approved by the Federal Energy Regulatory Commission. Such 
contract, agreement or arrangement shall include--
            (1) performance standards for operation and use of the 
        transmission system that the head of the Federal utility 
        determines necessary or appropriate, including standards that 
        assure recovery of all the Federal utility's costs and expenses 
        related to the transmission facilities that are the subject of 
        the contract, agreement or other arrangement; consistency with 
        existing contracts and third-party financing arrangements; and 
        consistency with said Federal utility's statutory authorities, 
        obligations, and limitations;
            (2) provisions for monitoring and oversight by the Federal 
        utility of the RTO's or ISO's fulfillment of the terms and 
        conditions of the contract, agreement or other arrangement, 
        including a provision for the resolution of disputes through 
        arbitration or other means with the regional transmission 
        organization or with other participants, notwithstanding the 
        obligations and limitations of any other law regarding 
        arbitration; and
            (3) a provision that allows the Federal utility to withdraw 
        from the RTO or ISO and terminate the contract, agreement or 
        other arrangement in accordance with its terms.
Neither this section, actions taken pursuant to it, nor any other 
transaction of a Federal utility using an RTO or ISO shall confer upon 
the Federal Energy Regulatory Commission jurisdiction or authority over 
the Federal utility's electric generation assets, electric capacity or 
energy that the Federal utility is authorized by law to market, or the 
Federal utility's power sales activities.
    (c) 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 its transmission 
        system shall be construed to prohibit a transfer of control and 
        use of its transmission system pursuant to, and subject to all 
        requirements of subsection (b).
            (2) Other obligations.--This subsection shall not be 
        construed to--
                    (A) suspend, or exempt any Federal utility from, 
                any provision of existing Federal law, including but 
                not limited to any requirement or direction relating to 
                the use of the Federal utility's transmission system, 
                environmental protection, fish and wildlife protection, 
                flood control, navigation, water delivery, or 
                recreation; or
                    (B) authorize abrogation of any contract or treaty 
                obligation.
            (3) Repeal.--Section 311 of title III of Appendix B of the 
        Act of October 27, 2000 (P.L. 106-377, section 1(a)(2); 114 
        Stat. 1441, 1441A-80; 16 U.S.C. 824n) is repealed.

SEC. 1235. STANDARD MARKET DESIGN.

    (a) Remand.--The Commission's proposed rulemaking entitled 
``Remedying Undue Discrimination through Open Access Transmission 
Service and Standard Electricity Market Design'' (Docket No. RM01-12-
000) (``SMD NOPR'') is remanded to the Commission for reconsideration. 
No final rule mandating a standard electricity market design pursuant 
to the proposed rulemaking, including any rule or order of general 
applicability within the scope of the proposed rulemaking, may be 
issued before October 31, 2006, or take effect before December 31, 
2006. Any final rule issued by the Commission pursuant to the proposed 
rulemaking shall be preceded by a second notice of proposed rulemaking 
issued after the date of enactment of this Act and an opportunity for 
public comment.
    (b) Savings Clause.--This section shall not be construed to modify 
or diminish any authority or obligation the Commission has under this 
Act, the Federal Power Act, or other applicable law, including, but not 
limited to, any authority to--
            (1) issue any rule or order (of general or particular 
        applicability) pursuant to any such authority or obligation; or
            (2) act on a filing or filings by 1 or more transmitting 
        utilities for the voluntary formation of a Regional 
        Transmission Organization or Independent System Operator (as 
        defined in the Federal Power Act) (and related market 
        structures or rules) or voluntary modification of an existing 
        Regional Transmission Organization or Independent System 
        Operator (and related market structures or rules).

SEC. 1236. NATIVE LOAD SERVICE OBLIGATION.

    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) Meeting Service Obligations.--(1) 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 1 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 
        1 or more contracts or service agreements for firm transmission 
        service, holds firm transmission rights for delivery of the 
        output of such generation facilities or such purchased energy 
        to meet such service obligation,
is entitled to use such firm transmission rights, or, equivalent 
tradable or financial transmission rights, in order to deliver such 
output or purchased energy, or the output of other generating 
facilities or purchased energy to the extent deliverable using such 
rights, to the extent required to meet its service obligation.
    ``(2) To the extent that all or a portion of the service obligation 
covered by such firm transmission rights or equivalent tradable or 
financial transmission rights is transferred to another load-serving 
entity, the successor load-serving entity shall be entitled to use the 
firm transmission rights or equivalent tradable or financial 
transmission rights associated with the transferred service obligation. 
Subsequent transfers to another load-serving entity, or back to the 
original load-serving entity, shall be entitled to the same rights.
    ``(3) The Commission shall exercise its authority under this Act in 
a manner that facilitates the planning and expansion of transmission 
facilities to meet the reasonable needs of load-serving entities to 
satisfy their service obligations, 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.
    ``(b) Allocation of Transmission Rights.--Nothing in subsections 
(a)(1) and (a) (2) of this section shall affect any existing or future 
methodology employed by an RTO or ISO for allocating or auctioning 
transmission rights if such RTO or ISO 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 an RTO or ISO never 
allocated financial transmission rights on its system that pertained to 
a period before January 1, 2005, with respect to any application by 
such RTO or ISO that would change its methodology the Commission shall 
exercise its authority in a manner consistent with the Act and the 
policies expressed in subsections (a)(1) and (a)(2) 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.
    ``(c) Certain Transmission Rights.--The Commission may exercise 
authority under this Act to make transmission rights not used to meet 
an obligation covered by subsection (a) available to other entities in 
a manner determined by the Commission to be just, reasonable, and not 
unduly discriminatory or preferential.
    ``(d) Obligation to Build.--Nothing in this Act shall relieve a 
load-serving entity from any obligation under State or local law to 
build transmission or distribution facilities adequate to meet its 
service obligations.
    ``(e) 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 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.
    ``(f) 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 such facilities, protections for 
transmission service comparable to those provided to load-serving 
entities pursuant to this section.
    ``(g) FERC Rulemaking on Long-Term Transmission Rights in Organized 
Markets.--Within one 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 subsection (a)(3) in Commission-approved 
RTOs and ISOs with organized electricity markets.
    ``(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 its jurisdiction.
    ``(j) Effect of Exercising Rights.--An entity that lawfully 
exercises rights granted under subsection (a) shall not be considered 
by such action as engaging in undue discrimination or preference under 
this Act.
    ``(k) TVA Area.--For purposes of subsection (a)(1)(B), a load-
serving entity that is located within the service area of the Tennessee 
Valley Authority and that has a firm wholesale power supply contract 
with the Tennessee Valley Authority shall be deemed to hold firm 
transmission rights for the transmission of such power.
    ``(l) Definitions.--For purposes of 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 1 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 1 or more of the foregoing, or a 
        corporation which is wholly owned, directly or indirectly, by 
        any 1 or more of the foregoing, competent to carry on the 
        business of developing, transmitting, utilizing or distributing 
        power''.

SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary of Energy, 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 of Energy shall submit a report to Congress 
and the States on the results of the study conducted under subsection 
(a), including recommendations to Congress and the States for any 
suggested legislative or regulatory changes.

                  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. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT.

    ``(a) Rulemaking Requirement.--Within 1 year after the enactment of 
this section, the Commission shall establish, by rule, incentive-based 
(including, but not limited to performance-based) rate treatments for 
the transmission of electric energy in interstate commerce by public 
utilities for the purpose of benefiting consumers by ensuring 
reliability and reducing the cost of delivered power by reducing 
transmission congestion. Such rule shall--
            ``(1) promote reliable and economically efficient 
        transmission and generation of electricity by promoting capital 
        investment in the enlargement, improvement, maintenance and 
        operation of facilities for the transmission of electric energy 
        in interstate commerce;
            ``(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 
        such facilities; and
            ``(4) allow recovery of all prudently incurred costs 
        necessary to comply with mandatory reliability standards issued 
        pursuant to section 215 of this Act.
The Commission may, from time to time, revise such rule.
    ``(b) Additional Incentives for RTO Participation.--In the rule 
issued under this section, the Commission shall, to the extent within 
its jurisdiction, provide for incentives to each transmitting utility 
or electric utility that joins a Regional Transmission Organization or 
Independent System Operator. Incentives provided by the Commission 
pursuant to such rule shall include--
            ``(1) recovery of all prudently incurred costs to develop 
        and participate in any proposed or approved RTO, ISO, or 
        independent transmission company;
            ``(2) recovery of all costs previously approved by a State 
        commission which exercised jurisdiction over the transmission 
        facilities prior to the utility's participation in the RTO or 
        ISO, including costs necessary to honor preexisting 
        transmission service contracts, in a manner which does not 
        reduce the revenues the utility receives for transmission 
        services for a reasonable transition period after the utility 
        joins the RTO or ISO;
            ``(3) recovery as an expense in rates of the costs 
        prudently incurred to conduct transmission planning and 
        reliability activities, including the costs of participating in 
        RTO, ISO and other regional planning activities and design, 
        study and other precertification costs involved in seeking 
        permits and approvals for proposed transmission facilities;
            ``(4) a current return in rates for construction work in 
        progress for transmission facilities and full recovery of 
        prudently incurred costs for constructing transmission 
        facilities;
            ``(5) formula transmission rates; and
            ``(6) a maximum 15 year accelerated depreciation on new 
        transmission facilities for rate treatment purposes.
The Commission shall ensure that any costs recoverable pursuant to this 
subsection may be recovered by such utility through the transmission 
rates charged by such utility or through the transmission rates charged 
by the RTO or ISO that provides transmission service to such utility.
    ``(c) Just and Reasonable Rates.--All rates approved under the 
rules adopted pursuant to this section, including any revisions to such 
rules, are subject to the requirement of sections 205 and 206 that all 
rates, charges, terms, and conditions be just and reasonable and not 
unduly discriminatory or preferential.''.

                    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 Utilities 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 Utilities 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 the 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 of Energy shall 
        provide technical assistance to States and regional 
        organizations formed by 2 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 improved 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 
                C.F.R. 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 subparagraphs (A), (B) or (C) of 
        paragraph (1) of this subsection have been met. After notice, 
        including sufficient notice to potentially affected qualifying 
        cogeneration facilities and qualifying small power production 
        facilities, and an opportunity for comment, the Commission 
        shall make a final determination within 90 days of such 
        application regarding whether the conditions set forth in 
        subparagraphs (A), (B) or (C) of paragraph (1) have been met.
            ``(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 subparagraphs (A), (B) 
        or (C) of paragraph (1) of this subsection are no longer met. 
        After notice, including sufficient notice to potentially 
        affected utilities, and opportunity for comment, the Commission 
        shall issue an order within 90 days of such application 
        reinstating the electric utility's obligation to purchase 
        electric energy under this section if the Commission finds that 
        the conditions set forth in subparagraphs (A), (B) or (C) of 
        paragraph (1) which relieved the obligation to purchase, are no 
        longer met.
            ``(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 C.F.R. 
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 C.F.R. 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:
            ``(16) 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:
            ``(3)(A) Not later than one 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 (16) 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 (16) of section 111(d).''.
            (2) Failure to comply.--Section 112 (d) f 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 (16), 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 (16).''.
            (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 (16) 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 (16) 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 (16).''.

                      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.--The term ``holding company'' means--
                    (A) any company that directly or indirectly owns, 
                controls, or holds, with power to vote, 10 percent or 
                more of the outstanding voting securities of a public-
                utility company or of a holding company of any public-
                utility company; and
                    (B) any person, determined by the Commission, after 
                notice and opportunity for hearing, to exercise 
                directly or indirectly (either alone or pursuant to an 
                arrangement or understanding with 1 or more persons) 
                such a controlling influence over the management or 
                policies of any public-utility company or holding 
                company as to make it necessary or appropriate for the 
                rate protection of utility customers with respect to 
                rates that such person be subject to the obligations, 
                duties, and liabilities imposed by this subtitle upon 
                holding companies.
            (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 1 or more other persons) so as to 
                make it necessary for the rate protection of utility 
                customers with respect to rates that such person be 
                subject to the obligations, duties, and liabilities 
                imposed by this subtitle upon subsidiary companies of 
                holding companies.
            (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 1 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 1 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.).

SEC. 1272. IMPLEMENTATION.

    Not later than 12 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 12 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) 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 in order 
to assure that each allocation is appropriate for the protection of 
investors and consumers of such public utility.
    (b) Cost Allocation.--Nothing in this section shall preclude the 
Commission or a State commission from exercising its jurisdiction under 
other applicable law with respect to the review or authorization of any 
costs allocated to a public utility in a holding company system located 
in the affected State as a result of the acquisition of non-power goods 
or administrative and management services by such public utility from 
an associate company organized specifically for that purpose.
    (c) Rules.--Not later than 6 months after the date of enactment of 
this Act, the Commission shall issue rules (which rules shall be 
effective no earlier than the effective date of this subtitle) to 
exempt from the requirements of this section any company in a holding 
company system whose public utility operations are confined 
substantially to a single State and any other class of transactions 
that the Commission finds is not relevant to the jurisdictional rates 
of a public utility.
    (d) Public Utility.--As used in this section, the term ``public 
utility'' has the meaning given that term in section 201(e) of the 
Federal Power Act.

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. MARKET TRANSPARENCY RULES.

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

``SEC. 220. MARKET TRANSPARENCY RULES.

    ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide the Commission 
and the public with access to such information as is necessary or 
appropriate to facilitate price transparency and participation in 
markets subject to the Commission's jurisdiction under this Act. Such 
systems shall provide information about the availability and market 
price of wholesale electric energy and transmission services to the 
Commission, State commissions, buyers and sellers of wholesale electric 
energy, users of transmission services, and the public on a timely 
basis. The Commission shall have authority to obtain such information 
from any electric utility or transmitting utility, including any entity 
described in section 201(f).
    ``(b) Exemptions.--The Commission shall exempt from disclosure 
information it determines would, if disclosed, be detrimental to the 
operation of an effective market or jeopardize system security. This 
section shall not apply to transactions for the purchase or sale of 
wholesale electric energy or transmission services within the area 
described in section 212(k)(2)(A). In determining the information to be 
made available under this section and time to make such information 
available, the Commission shall seek to ensure that consumers and 
competitive markets are protected from the adverse effects of potential 
collusion or other anti-competitive behaviors that can be facilitated 
by untimely public disclosure of transaction-specific information.
    ``(c) Commodity Futures Trading Commission.--This section shall not 
affect the exclusive jurisdiction of the Commodity Futures Trading 
Commission with respect to accounts, agreements, contracts, or 
transactions in commodities under the Commodity Exchange Act (7 U.S.C. 
1 et seq.).
    ``(d) Savings Provision.--In exercising its authority under this 
section, the Commission shall not--
            ``(1) compete with, or displace from the market place, any 
        price publisher; or
            ``(2) regulate price publishers or impose any requirements 
        on the publication of information.''.

SEC. 1282. 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. 221. PROHIBITION ON FILING FALSE INFORMATION.

    ``No person or other entity (including an entity described in 
section 201(f)) shall willfully and knowingly report any information 
relating to the price of electricity sold at wholesale or availability 
of transmission capacity, which information the person or any other 
entity knew to be false at the time of the reporting, to a Federal 
agency with intent to fraudulently affect the data being compiled by 
such Federal agency.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

    ``(a) Prohibition.--No person or other entity (including an entity 
described in section 201(f)) shall willfully and knowingly enter into 
any contract or other arrangement to execute a `round trip trade' for 
the purchase or sale of electric energy at wholesale.
    ``(b) Definition.--For the purposes of this section, the term 
`round trip trade' means a transaction, or combination of transactions, 
in which a person or any other entity--
            ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other entity 
        electric energy at wholesale;
            ``(2) simultaneously with entering into the contract or 
        arrangement described in paragraph (1), arranges a financially 
        offsetting trade with such other person or entity for the same 
        such electric energy, at the same location, price, quantity and 
        terms so that, collectively, the purchase and sale transactions 
        in themselves result in no financial gain or loss; and
            ``(3) enters into the contract or arrangement with a 
        specific intent to fraudulently affect reported revenues, 
        trading volumes, or prices.''.

SEC. 1283. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended as follows:
            (1) By inserting ``electric utility,'' after ``Any 
        person,''.
            (2) By inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
    (b) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 8251) 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''.
    (c) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended as follows:
            (1) By inserting ``, electric utility, transmitting 
        utility, or other entity'' after ``person'' each time it 
        appears.
            (2) By striking the period at the end of the first sentence 
        and inserting 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.''.
    (d) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting ``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 as follows:
            (1) In subsections (a) and (b), by striking ``section 211, 
        212, 213, or 214'' each place it appears and inserting ``Part 
        II''.
            (2) In subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.

SEC. 1284. 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. 1285. REFUND AUTHORITY.

    Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by 
adding the following new subsection at the end thereof:
    ``(e)(1) Except as provided in paragraph (2), if an entity 
described in section 201(f) voluntarily makes a short-term sale of 
electric energy and the sale violates Commission rules in effect at the 
time of the sale, such entity shall be subject to the Commission's 
refund authority under this section with respect to such violation.
    ``(2) This section shall not apply to--
            ``(A) any entity that sells less than 8,000,000 megawatt 
        hours of electricity per year; or
            ``(B) any electric cooperative.
    ``(3) For purposes of this subsection, 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).
    ``(4) The Commission shall have refund authority under subsection 
(e)(1) with respect to a voluntary short-term sale of electric energy 
by the Bonneville Power Administration (in this section `Bonneville') 
only if the sale is at an unjust and unreasonable rate and, in that 
event, may order a refund only for short-term sales made by Bonneville 
at rates that are higher than the highest just and reasonable rate 
charged by any other entity for a short-term sale of electric energy in 
the same geographic market for the same, or most nearly comparable, 
period as the sale by Bonneville.
    ``(5) With respect to any Federal power marketing agency or the 
Tennessee Valley Authority, the Commission shall not assert or exercise 
any regulatory authority or powers under subsection (e)(1) other than 
the ordering of refunds to achieve a just and reasonable rate.''.

SEC. 1286. SANCTITY OF CONTRACT.

    (a) In General.--The Federal Energy Regulatory Commission (in this 
section, ``the Commission'') shall have no authority to abrogate or 
modify any provision of an executed contract or executed contract 
amendment described in subsection (b) that has been entered into or 
taken effect, except upon a finding that failure to take such action 
would be contrary to the public interest.
    (b) Limitation.--Except as provided in subsection (c), this section 
shall apply only to a contract or contract amendment--
            (1) executed on or after the date of enactment of this Act; 
        and
            (2) entered into--
                    (A) for the purchase or sale of electric energy 
                under section 205 of the Federal Power Act (16 U.S.C. 
                824d) where the seller has been authorized by the 
                Commission to charge market-based rates; or
                    (B) under section 4 of the Natural Gas Act (15 
                U.S.C. 717c) where the natural gas company has been 
                authorized by the Commission to charge market-based 
                rates for the service described in the contract.
    (c) Exclusion.--This section shall not apply to an executed 
contract or executed contract amendment that expressly provides for a 
standard of review other than the public interest standard.
    (d) Savings Provision.--With respect to contracts to which this 
section does not apply, nothing in this section alters existing law 
regarding the applicable standard of review for a contract subject to 
the jurisdiction of the Commission.

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).

                       Subtitle H--Merger Reform

SEC. 1291. MERGER REVIEW REFORM AND ACCOUNTABILITY.

    (a) Merger Review Reform.--Within 180 days after the date of 
enactment of this Act, the Secretary of Energy, in consultation with 
the Federal Energy Regulatory Commission and the Attorney General of 
the United States, shall prepare, and transmit to Congress each of the 
following:
            (1) A study of the extent to which the authorities vested 
        in the Federal Energy Regulatory Commission under section 203 
        of the Federal Power Act are duplicative of authorities vested 
        in--
                    (A) other agencies of Federal and State Government; 
                and
                    (B) the Federal Energy Regulatory Commission, 
                including under sections 205 and 206 of the Federal 
                Power Act.
            (2) Recommendations on reforms to the Federal Power Act 
        that would eliminate any unnecessary duplication in the 
        exercise of regulatory authority or unnecessary delays in the 
        approval (or disapproval) of applications for the sale, lease, 
        or other disposition of public utility facilities.
    (b) Merger Review Accountability.--Not later than 1 year after the 
date of enactment of this Act and annually thereafter, with respect to 
all orders issued within the preceding year that impose a condition on 
a sale, lease, or other disposition of public utility facilities under 
section 203(b) of the Federal Power Act, the Federal Energy Regulatory 
Commission shall transmit a report to Congress explaining each of the 
following:
            (1) The condition imposed.
            (2) Whether the Commission could have imposed such 
        condition by exercising its authority under any provision of 
        the Federal Power Act other than under section 203(b).
            (3) If the Commission could not have imposed such condition 
        other than under section 203(b), why the Commission determined 
        that such condition was consistent with the public interest.

SEC. 1292. ELECTRIC UTILITY MERGERS.

    (a) Amendment.--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; or
            ``(C) purchase, acquire, or take any security with a value 
        in excess of $10,000,000 of any other public utility.
    ``(2) No holding company in a holding company system that includes 
a public utility shall purchase, acquire, or take any security with a 
value in excess of $10,000,000 of, or, by any means whatsoever, 
directly or indirectly, merge or consolidate with, a public utility or 
a holding company in a holding company system that includes a public 
utility with a value in excess of $10,000,000 without first having 
secured an order of the Commission authorizing it to do so.
    ``(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. In evaluating whether a 
transaction will be consistent with the public interest, the Commission 
shall consider whether the proposed transaction--
            ``(A) will adequately protect consumer interests;
            ``(B) will be consistent with competitive wholesale 
        markets;
            ``(C) will impair the financial integrity of any public 
        utility that is a party to the transaction or an associate 
        company of any party to the transaction; and
            ``(D) satisfies such other criteria as the Commission 
        considers 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 12 months after the date of enactment of this section.

                        Subtitle I--Definitions

SEC. 1295. DEFINITIONS.

    (a) Electric Utility.--Section 3(22) of the Federal Power Act (16 
U.S.C. 796(22)) is amended to read as follows:
            ``(22) Electric utility.--The term `electric utility' means 
        any person or Federal or State agency (including any entity 
        described in section 201(f)) that sells electric energy; such 
        term includes the Tennessee Valley Authority and each Federal 
        power marketing administration.''.
    (b) Transmitting Utility.--Section 3(23) of the Federal Power Act 
(16 U.S.C. 796(23)) is amended to read as follows:
            ``(23) Transmitting utility.--The term `transmitting 
        utility' means an entity, including any entity described in 
        section 201(f), that owns, operates, or controls facilities 
        used for the transmission of electric energy--
                    ``(A) in interstate commerce; or
                    ``(B) for the sale of electric energy at 
                wholesale.''.
    (c) Additional Definitions.--Section 3 of the Federal Power Act (16 
U.S.C. 796) is amended 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 to exercise operational or functional control 
        of facilities used for the transmission of electric energy in 
        interstate commerce and to ensure nondiscriminatory access to 
        such facilities.
            ``(28) ISO.--The term `Independent System Operator' or 
        `ISO' means an entity approved by the Commission to exercise 
        operational or functional control of facilities used for the 
        transmission of electric energy in interstate commerce and to 
        ensure nondiscriminatory access to such facilities.''.
    (d) Commission.--For the purposes of this title, the term 
``Commission'' means the Federal Energy Regulatory Commission.
    (e) Applicability.--Section 201(f) of the Federal Power Act (16 
U.S.C. 824(f)) is amended by adding after ``political subdivision of a 
state,'' the following: ``an electric cooperative that has 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 J--Technical and Conforming Amendments

SEC. 1297. CONFORMING AMENDMENTS.

    The Federal Power Act is amended as follows:
            (1) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is 
        amended as follows:
                    (A) In the first sentence 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''.
                    (B) In the second sentence by striking ``210 or 
                211'' and inserting ``203(a)(2), 206(e), 210, 211, 
                211A, 212, 215, 216, 217, 218, 219, 220, 221, and 
                222''.
                    (C) Section 201(b)(2) of such Act is amended by 
                striking ``The'' in the first place it appears and 
                inserting ``Notwithstanding section 201(f), the'' and 
                in the second sentence after ``any order'' by inserting 
                ``or rule''.
            (2) Section 201(e) of such Act is amended by striking 
        ``210, 211, or 212'' and inserting ``206(e), 206(f), 210, 211, 
        211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222''.
            (3) Section 206 of such Act (16 U.S.C. 824e) is amended as 
        follows:
                    (A) In subsection (b), in the seventh sentence, by 
                striking ``the public utility to make''.
                    (B) In the first sentence of subsection (a), by 
                striking ``hearing had'' and inserting ``hearing 
                held''.
            (4) Section 211(c) of such Act (16 U.S.C. 824j(c)) is 
        amended by--
                    (A) striking ``(2)'';
                    (B) striking ``(A)'' and inserting ``(1)''
                    (C) striking ``(B)'' and inserting ``(2)''; and
                    (D) striking ``termination of modification'' and 
                inserting ``termination or modification''.
            (5) Section 211(d)(1) of such Act (16 U.S.C. 824j(d)(1)) is 
        amended by striking ``electric utility'' the second time it 
        appears and inserting ``transmitting utility''.
            (6) Section 315 (c) of such Act (16 U.S.C. 825n(c)) is 
        amended by striking ``subsection'' and inserting ``section''.

                     Subtitle K--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 BOARD ON ECONOMIC DISPATCH.

    ``(a) In General.--The Commission shall convene a joint board 
pursuant to section 209 of this Act to study the issue of security 
constrained economic dispatch for a market region.
    ``(b) Membership.--The Commission shall request each State to 
nominate a representative for such joint board.
    ``(c) Powers.--The board's sole authority 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.
    ``(d) Report to the Congress.--The board shall issue a report on 
these matters within one year of enactment of this section, including 
any consensus recommendations for statutory or regulatory reform.''.

                   TITLE XIII--ENERGY TAX INCENTIVES

SEC. 1300. SHORT TITLE; ETC.

    (a) Short Title.--This title may be cited as the ``Enhanced Energy 
Infrastructure and Technology Tax 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--Energy Infrastructure Tax Incentives

SEC. 1301. 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, 
                        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) is amended by inserting after the item relating to 
subparagraph (C)(iii) the following:

``(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.--The amendments made by this section shall 
apply to property placed in service after April 11, 2005.

SEC. 1302. NATURAL GAS DISTRIBUTION LINES 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 natural gas distribution 
                        line.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) is amended by inserting after the item relating to 
subparagraph (E)(vi) the following:

``(E) (vii).................................................      35''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after April 11, 2005.

SEC. 1303. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Subparagraph (E) of section 168(e)(3) (relating to 
classification of certain property), as amended by section 1302 of this 
title, is amended by striking ``and'' at the end of clause (vi), by 
striking the period at the end of clause (vii) and inserting ``, and'', 
and by adding at the end the following new clause:
                            ``(viii) 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) is amended by inserting after the item relating to 
subparagraph (E)(vii) the following:

``(E) (viii)................................................      30''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after April 11, 2005.

SEC. 1304. 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, paragraph (1) shall be applied without regard to the 
        phrase `in operation before January 1, 1976'.''.
    (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) Technical Amendment.--Section 169(d)(3) is amended by striking 
``Health, Education, and Welfare'' and inserting ``Health and Human 
Services''.
    (d) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after April 11, 2005.

SEC. 1305. 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 45J and by moving section 
        45J (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) is 
        amended by striking ``plus'' at the end of paragraph (18), by 
        striking the period at the end of paragraph (19) and inserting 
        ``, plus'', and by adding at the end the following:
            ``(20) the nonconventional source production credit 
        determined under section 45J(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 45J(d)(2)(C)''.
                    (C) Section 45(e)(9) is amended--
                            (i) by striking ``section 29'' and 
                        inserting ``section 45J'', and
                            (ii) by inserting ``(or under section 29, 
                        as in effect on the day before the date of 
                        enactment of the Enhanced Energy Infrastructure 
                        and Technology Tax 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 
                        45J(d)(5))'', and
                            (ii) in subsection (d)(3) by striking 
                        ``section 29'' both places it appears and 
                        inserting ``section 45J''.
                    (E) Section 45J(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 45J(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. 45J. 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)) 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) and (g) as subsections (e) and (f), 
                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. 1306. 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 the Enhanced 
        Energy Infrastructure and Technology Tax Act of 2005.
            ``(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) 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.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 1307. 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. 1308. 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 1 or 
        more related persons engages in the refining of crude oil, 
        subsection (c) shall not apply to the taxpayer for a taxable 
        year if the average daily refinery runs of the taxpayer and 
        such persons for the taxable year exceed 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.

            Subtitle B--Miscellaneous Energy Tax Incentives

SEC. 1311. 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) is amended by inserting 
after section 25B the following new section:

``SEC. 25C. 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) 15 percent of the qualified solar water heating 
        property expenditures made by the taxpayer during such year,
            ``(2) 15 percent of the qualified photovoltaic property 
        expenditures made by the taxpayer during such year, and
            ``(3) 15 percent of the qualified fuel cell property 
        expenditures made by the taxpayer during such year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--
                    ``(A) In general.--The credit allowed under 
                subsection (a) shall not exceed--
                            ``(i) $2,000 for solar water heating 
                        property described in subsection (c)(1),
                            ``(ii) $2,000 for photovoltaic property 
                        described in subsection (c)(2), and
                            ``(iii) $500 for each 0.5 kilowatt of 
                        capacity of property described in subsection 
                        (c)(3).
                    ``(B) Prior expenditures by taxpayer on same 
                residence taken into account.--In determining the 
                amount of the credit allowed to a taxpayer with respect 
                to any dwelling unit under this section, the dollar 
                amounts under clauses (i) and (ii) of subparagraph (A) 
                with respect to each type of property described in such 
                clauses shall be reduced by the credit allowed to the 
                taxpayer under this section with respect to such type 
                of property for all preceding taxable years with 
                respect to such dwelling unit.
            ``(2) Property standards.--No credit shall be allowed under 
        this section for an item of property unless--
                    ``(A) the original use of such property commences 
                with the taxpayer,
                    ``(B) such property can be reasonably expected to 
                remain in use for at least 5 years,
                    ``(C) such property is installed on or in 
                connection with a dwelling unit located in the United 
                States and used as a residence by the taxpayer,
                    ``(D) in the case of solar water heating property, 
                such property is certified for performance by the non-
                profit Solar Rating and Certification Corporation or a 
                comparable entity endorsed by the government of the 
                State in which such property is installed, and
                    ``(E) in the case of fuel cell property, such 
                property meets the performance and quality standards 
                (if any) which have been prescribed by the Secretary by 
                regulations (after consultation with the Secretary of 
                Energy).
    ``(c) 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 which uses solar energy to 
        heat water for use in a dwelling unit.
            ``(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 and which is not 
        described in paragraph (1).
            ``(3) Qualified fuel cell property expenditure.--The term 
        `qualified fuel cell property expenditure' means an expenditure 
        for any qualified fuel cell property (as defined in section 
        48(b)(1)).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) 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 (c) solely because it 
        constitutes a structural component of the structure on which it 
        is installed.
            ``(2) 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.
            ``(3) 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 2 or more 
        individuals, the following rules shall apply:
                    ``(A) The amount of the credit allowable under 
                subsection (a) by reason of expenditures made during 
                such calendar year by any of such individuals with 
                respect to such dwelling unit shall be determined by 
                treating all of such individuals as 1 taxpayer whose 
                taxable year is such calendar year.
                    ``(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 (c).
            ``(4) 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 the individual's 
        tenant-stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(5) 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.
            ``(6) 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.
            ``(7) 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.
                    ``(C) Amount.--The amount of any expenditure shall 
                be the cost thereof.
            ``(8) 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)).
    ``(e) 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.
    ``(f) Termination.--The credit allowed under this section shall not 
apply to taxable years beginning 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 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. Residential energy efficient property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures made after the date of the enactment of this Act.

SEC. 1312. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.

    (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,''.
    (b) Energy Percentage.--Subparagraph (A) of section 48(a)(2) 
(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, 15 percent, and
                            ``(ii) in the case of any other energy 
                        property, 10 percent.''.
    (c) Qualified Fuel Cell Property.--Section 48 (relating to energy 
credit) is amended--
            (1) by redesignating subsection (b) as paragraph (5) of 
        subsection (a),
            (2) by striking ``subsection (a)'' in paragraph (5) of 
        subsection (a), as redesignated by paragraph (1), and inserting 
        ``this subsection'', and
            (3) by adding at the end the following new subsection:
    ``(b) Qualified Fuel Cell Property.--For purposes of subsection 
(a)(3)(A)(iii)--
            ``(1) In general.--The term `qualified fuel cell property' 
        means a fuel cell power plant which--
                    ``(A) generates at least 0.5 kilowatt of 
                electricity using an electrochemical process, and
                    ``(B) has an electricity-only generation efficiency 
                greater than 30 percent.
            ``(2) Limitation.--The energy credit with respect to any 
        qualified fuel cell property shall not exceed an amount equal 
        to $500 for each 0.5 kilowatt of capacity of such property.
            ``(3) 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.
            ``(4) Termination.--The term `qualified fuel cell property' 
        shall not include any property placed in service after December 
        31, 2007.''.
    (d) Conforming Amendment.--Section 48(a)(1) is amended by inserting 
``except as provided in subsection (b)(2),'' before ``the energy'' the 
first place it appears.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after April 11, 2005, 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. 1313. 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 16.9 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'.''.
    (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.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2006.

SEC. 1314. AMORTIZATION OF DELAY RENTAL PAYMENTS.

    (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 Delay Rental Payments for Domestic Oil and 
Gas Wells.--
            ``(1) In general.--Any delay rental payment paid or 
        incurred in connection with the development of oil or gas wells 
        within the United States (as defined in section 638) shall be 
        allowed as a deduction ratably over the 24-month period 
        beginning on the date that such payment was paid or incurred.
            ``(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 to which 
        a delay rental payment relates is retired or abandoned during 
        the 24-month period described in paragraph (1), no deduction 
        shall be allowed on account of such retirement or abandonment 
        and the amortization deduction under this subsection shall 
        continue with respect to such payment.
            ``(5) Delay rental payments.--For purposes of this 
        subsection, the term `delay rental payment' means an amount 
        paid for the privilege of deferring development of an oil or 
        gas well under an oil or gas lease.''.
    (b) 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.

SEC. 1315. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 167 (relating to depreciation), as amended 
by section 1314 of this title, is amended by redesignating subsection 
(i) as subsection (j) and by inserting after subsection (h) the 
following new subsection:
    ``(i) 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) Special rules.--For purposes of this subsection, 
        rules similar to the rules of paragraphs (2), (3), and (4) of 
        subsection (h) shall apply.''.
    (b) Conforming Amendment.--Section 263A(c)(3) is amended by 
inserting ``167(h), 167(i),'' 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.

SEC. 1316. ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to other credits) is amended by adding at the end the 
following:

``SEC. 30B. ADVANCED LEAN BURN TECHNOLOGY 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 the credit amounts determined under subsection (b) 
with respect to each qualified advanced lean burn technology motor 
vehicle placed in service by the taxpayer during the taxable year.
    ``(b) Credit Amount.--For purposes of subsection (a)--
            ``(1) Fuel efficiency.--The credit amount with respect to 
        any vehicle shall be--
                    ``(A) $500, if the city fuel economy of such 
                vehicle is at least 125 percent but less than 150 
                percent of the 2000 model year city fuel economy for a 
                vehicle in the same inertia weight class,
                    ``(B) $1,000, if the city fuel economy of such 
                vehicle is at least 150 percent but less than 175 
                percent of the 2000 model year city fuel economy for a 
                vehicle in the same inertia weight class,
                    ``(C) $1,500, if the city fuel economy of such 
                vehicle is at least 175 percent but less than 200 
                percent of the 2000 model year city fuel economy for a 
                vehicle in the same inertia weight class,
                    ``(D) $2,000, if the city fuel economy of such 
                vehicle is at least 200 percent but less than 225 
                percent of the 2000 model year city fuel economy for a 
                vehicle in the same inertia weight class,
                    ``(E) $2,500, if the city fuel economy of such 
                vehicle is at least 225 percent but less than 250 
                percent of the 2000 model year city fuel economy for a 
                vehicle in the same inertia weight class, and
                    ``(F) $3,000, if the city fuel economy of such 
                vehicle is at least 250 percent of the 2000 model year 
                city fuel economy for a vehicle in the same inertia 
                weight class.
            ``(2) Conservation.--The credit amount determined under 
        paragraph (1) with respect to any vehicle shall be increased 
        by--
                    ``(A) $250, if the lifetime fuel savings of such 
                vehicle is at least 1,500 gallons of motor fuel but 
                less than 2,500 gallons of motor fuel, and
                    ``(B) $500, if the lifetime fuel savings of such 
                vehicle is at least 2,500 gallons of motor fuel.
    ``(c) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the 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 subpart A and 
        sections 27 and 30A for the taxable year.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified advanced lean burn technology motor 
        vehicle.--The term `qualified advanced lean burn technology 
        motor vehicle' means a motor vehicle--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) powered by an internal combustion engine 
                that--
                            ``(i) is designed to operate primarily 
                        using more air than is necessary for complete 
                        combustion of the fuel, and
                            ``(ii) incorporates direct injection,
                    ``(C) that only uses diesel fuel (as defined in 
                section 4083(a)(3)),
                    ``(D) the city fuel economy of which is at least 
                125 percent of the 2000 model year city fuel economy 
                for a vehicle in the same inertia weight class, and
                    ``(E) that has received a certificate that such 
                vehicle meets or exceeds the Bin 8 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.
            ``(2) Lifetime fuel savings.--The term `lifetime fuel 
        savings' means, with respect to a qualified advanced lean burn 
        technology motor vehicle, an amount equal to the excess (if 
        any) of--
                    ``(A) 120,000 divided by the 2000 model year city 
                fuel economy for the vehicle inertia weight class, over
                    ``(B) 120,000 divided by the city fuel economy for 
                such vehicle.
            ``(3) 2000 model year city fuel economy.--The 2000 model 
        year city fuel economy with respect to a vehicle shall be 
        determined in accordance with the following tables:
                    ``(A) In the case of a passenger automobile:
``If vehicle inertia weight class   The 2000 model year city fuel 
        is:                                 economy is:
    1,500 or 1,750 lbs............................             43.7 mpg
    2,000 lbs.....................................             38.3 mpg
    2,250 lbs.....................................             34.1 mpg
    2,500 lbs.....................................             30.7 mpg
    2,750 lbs.....................................             27.9 mpg
    3,000 lbs.....................................             25.6 mpg
    3,500 lbs.....................................             22.0 mpg
    4,000 lbs.....................................             19.3 mpg
    4,500 lbs.....................................             17.2 mpg
    5,000 lbs.....................................             15.5 mpg
    5,500 lbs.....................................             14.1 mpg
    6,000 lbs.....................................             12.9 mpg
    6,500 lbs.....................................             11.9 mpg
    7,000 or 8,500 lbs............................            11.1 mpg.
                    ``(B) In the case of a light truck:
``If vehicle inertia weight class   The 2000 model year city fuel 
        is:                                 economy is:
    1,500 or 1,750 lbs............................             37.6 mpg
    2,000 lbs.....................................             33.7 mpg
    2,250 lbs.....................................             30.6 mpg
    2,500 lbs.....................................             28.0 mpg
    2,750 lbs.....................................             25.9 mpg
    3,000 lbs.....................................             24.1 mpg
    3,500 lbs.....................................             21.3 mpg
    4,000 lbs.....................................             19.0 mpg
    4,500 lbs.....................................             17.3 mpg
    5,000 lbs.....................................             15.8 mpg
    5,500 lbs.....................................             14.6 mpg
    6,000 lbs.....................................             13.6 mpg
    6,500 lbs.....................................             12.8 mpg
    7,000 or 8,500 lbs............................            12.0 mpg.
            ``(4) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(5) City fuel economy.--City fuel economy with respect to 
        any vehicle shall be measured in accordance with testing and 
        calculation procedures established by the Administrator of the 
        Environmental Protection Agency by regulations in effect on 
        April 11, 2005.
            ``(6) Other terms.--The terms `passenger automobile', 
        `light truck', and `manufacturer' shall 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.).
    ``(e) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (c) for such taxable year (referred 
        to as the `unused credit year' in this paragraph), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).
    ``(f) Special Rules.--For purposes of this section--
            ``(1) Reduction in basis.--The basis of any property for 
        which a credit is allowable under subsection (a) shall be 
        reduced by the amount of such credit (determined without regard 
        to subsection (c)).
            ``(2) No double benefit.--The amount of any deduction or 
        credit allowable under this chapter (other than the credit 
        allowable under subsection (a)), with respect to any vehicle 
        shall be reduced by the amount of credit allowed under 
        subsection (a) (determined without regard to subsection (c)) 
        for such vehicle for the taxable year.
            ``(3) 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 (c)).
            ``(4) 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.
            ``(5) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects not to have this section apply to such vehicle.
            ``(6) 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.
    ``(g) Regulations.--
            ``(1) In general.--The Secretary shall promulgate such 
        regulations as necessary to carry out this section, including 
        regulations to prevent the avoidance of the purposes of this 
        section through disposal of any motor vehicle or leasing of any 
        motor vehicle for a lease period of less than the economic life 
        of such vehicle.
            ``(2) Determination of motor vehicle eligibility.--The 
        Secretary, 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.
    ``(h) Termination.--This section shall not apply to any property 
placed in service after December 31, 2007.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a), as amended by section 1311 of this 
        title, 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:
            ``(33) to the extent provided in section 30B(f)(1).''.
            (2) Section 6501(m) is amended by inserting ``30B(f)(6),'' 
        after ``30(d)(4),''.
            (3) 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:

``Sec. 30B. Advanced lean burn technology motor vehicle credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act in taxable years ending after such date.

SEC. 1317. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
(relating to nonrefundable personal credits), as amended by section 
1311, is amended by inserting after section 25C the following new 
section:

``SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

    ``(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 20 percent of the amount paid 
or incurred by the taxpayer for qualified energy efficiency 
improvements installed during such taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by this section 
        with respect to a dwelling unit shall not exceed $2,000.
            ``(2) Prior credit amounts for taxpayer on same dwelling 
        taken into account.--If a credit was allowed to the taxpayer 
        under subsection (a) with respect to a dwelling unit in 1 or 
        more prior taxable years, the amount of the credit otherwise 
        allowable for the taxable year with respect to that dwelling 
        unit shall be reduced by the sum of the credits allowed under 
        subsection (a) to the taxpayer with respect to the dwelling 
        unit for all prior taxable years.
    ``(c) Qualified Energy Efficiency Improvements.--For purposes of 
this section, 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 the Enhanced 
Energy Infrastructure and Technology Tax Act of 2005 (or, in the case 
of a metal roof with appropriate pigmented coatings which meet the 
Energy Star program requirements), if--
            ``(1) 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),
            ``(2) the original use of such component commences with the 
        taxpayer, and
            ``(3) such component reasonably can be expected to remain 
        in use for at least 5 years.
If the aggregate cost of such components with respect to any dwelling 
unit exceeds $1,000, such components shall be treated as qualified 
energy efficiency improvements only if such components are also 
certified in accordance with subsection (d) as meeting such 
prescriptive criteria.
    ``(d) Certification.--The certification described in subsection (c) 
shall be--
            ``(1) determined on the basis of the technical 
        specifications or applicable ratings (including product 
        labeling requirements) for the measurement of energy efficiency 
        (based upon energy use or building envelope component 
        performance) for the energy efficient building envelope 
        component,
            ``(2) provided by a local building regulatory authority, a 
        utility, a manufactured home production inspection primary 
        inspection agency (IPIA), or an accredited home energy rating 
        system provider who is accredited by or otherwise authorized to 
        use approved energy performance measurement methods by the 
        Residential Energy Services Network (RESNET), and
            ``(3) made in writing in a manner which specifies in 
        readily verifiable fashion the energy efficient building 
        envelope components installed and their respective energy 
        efficiency levels.
    ``(e) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) 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.
            ``(2) 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).
            ``(3) Application of rules.--Rules similar to the rules 
        under paragraphs (3), (4), and (5) of section 25C(d) shall 
        apply.
    ``(f) Basis Adjustment.--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) Application of Section.--This section shall apply to 
qualified energy efficiency improvements installed after the date of 
the enactment of the Enhanced Energy Infrastructure and Technology Tax 
Act of 2005, and before January 1, 2008.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016, as amended by section 
        1316 of this title, 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 25D(f), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25D.''.
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1, as amended by section 1311, is 
        amended by inserting after the item relating to section 25C the 
        following new item:

``Sec. 25D. Energy efficiency improvements to existing homes.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to improvements installed after the date of the enactment of this 
Act in taxable years ending after such date.

               Subtitle C--Alternative Minimum Tax Relief

SEC. 1321. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST REGULAR 
              AND MINIMUM TAXES.

    (a) In General.--
            (1) Section 25c.--Section 25C(b), as added by section 1311 
        of this title, is amended by adding at the end the following 
        new paragraph:
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under subsection (a) for the taxable year shall not 
        exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.''.
            (2) Section 25d.--Section 25D(b), as added by section 1317 
        of this title, is amended by adding at the end the following 
        new paragraph:
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under subsection (a) for the taxable year shall not 
        exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 23(b)(4)(B) is amended by inserting ``and 
        sections 25C and 25D'' after ``this section''.
            (2) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
        and inserting ``, 25B, 25C, and 25D''.
            (3) Section 25(e)(1)(C) is amended by inserting ``25C, and 
        25D'' after ``25B,''.
            (4) Section 25B(g)(2) is amended by striking ``section 23'' 
        and inserting ``sections 23, 25C, and 25D''.
            (5) Section 26(a)(1) is amended by striking ``and 25B'' and 
        inserting ``25B, 25C, and 25D''.
            (6) Section 904(i) is amended by striking ``and 25B'' and 
        inserting ``25B, 25C, and 25D''.
            (7) Section 1400C(d) is amended by striking ``and 25B'' and 
        inserting ``25B, 25C, and 25D''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 1322. CERTAIN BUSINESS ENERGY CREDITS ALLOWED AGAINST REGULAR AND 
              MINIMUM TAXES.

    (a) In General.--Subparagraph (B) of section 38(c)(4) (relating to 
specified credits) is amended by redesignating clause (ii) as clause 
(iv) and by striking clause (i) and inserting the following new 
clauses:
                            ``(i) the credits determined under sections 
                        40, 45H, and 45I,
                            ``(ii) so much of the credit determined 
                        under section 46 as is attributable to section 
                        48(a)(3)(A)(iii),
                            ``(iii) for taxable years beginning after 
                        December 31, 2005, and before January 1, 2008, 
                        the credit determined under section 43, and''.
    (b) Effective Dates.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendment made by subsection (a) shall apply to credits 
        determined under the Internal Revenue Code of 1986 for taxable 
        years beginning after December 31, 2005.
            (2) Fuel cells.--Clause (ii) of section 38(c)(4)(B) of the 
        Internal Revenue Code of 1986, as amended by subsection (a) of 
        this section, shall apply to credits determined under the 
        Internal Revenue Code of 1986 for taxable years ending after 
        April 11, 2005.

                        TITLE XIV--MISCELLANEOUS

                      Subtitle C--Other Provisions

SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY ORDER.

    Department of Energy Order No. 202-03-2, issued by the Secretary of 
Energy on August 28, 2003, shall remain in effect unless rescinded by 
Federal statute.

SEC. 1442. REVIEW OF AGENCY DETERMINATIONS.

    Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by 
adding at the end the following:
    ``(i)(1) The United States Court of Appeals for the District of 
Columbia Circuit shall have original and exclusive jurisdiction over 
any civil action--
            ``(A) for review of any order or action of any Federal or 
        State administrative agency or officer to issue, condition, or 
        deny any permit, license, concurrence, or approval issued under 
        authority of any Federal law, other than the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.), required for 
        the construction of a natural gas pipeline for which a 
        certificate of public convenience and necessity is issued by 
        the Commission under this section;
            ``(B) alleging unreasonable delay by any Federal or State 
        administrative agency or officer in entering an order or taking 
        other action described in subparagraph (A); or
            ``(C) challenging any decision made or action taken under 
        this subsection.
    ``(2)(A) If the Court finds that the order, action, or failure to 
act is not consistent with the public convenience and necessity (as 
determined by the Commission under this section), or would prevent the 
construction and operation of natural gas facilities authorized by the 
certificate of public convenience and necessity, the permit, license, 
concurrence, or approval that is the subject of the order, action, or 
failure to act shall be deemed to have been issued subject to any 
conditions set forth in the reviewed order or action that the Court 
finds to be consistent with the public convenience and necessity.
    ``(B) For purposes of paragraph (1)(B), the failure of an agency or 
officer to issue any such permit, license, concurrence, or approval 
within the later of 1 year after the date of filing of an application 
for the permit, license, concurrence, or approval or 60 days after the 
date of issuance of the certificate of public convenience and necessity 
under this section, shall be considered to be unreasonable delay unless 
the Court, for good cause shown, determines otherwise.
    ``(C) The Court shall set any action brought under paragraph (1) 
for expedited consideration.''.

SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE NONATTAINMENT AREAS.

    Section 181 of the Clean Air Act (42 U.S.C.7511) is amended by 
adding the following new subsection at the end thereof:
    ``(d) Extended Attainment Date for Certain Downwind Areas.--
            ``(1) Definitions.--(A) The term `upwind area' means an 
        area that--
                    ``(i) significantly contributes to nonattainment in 
                another area, hereinafter referred to as a `downwind 
                area'; and
                    ``(ii) is either--
                            ``(I) a nonattainment area with a later 
                        attainment date than the downwind area, or
                            ``(II) an area in another State that the 
                        Administrator has found to be significantly 
                        contributing to nonattainment in the downwind 
                        area in violation of section 110(a)(2)(D) and 
                        for which the Administrator has established 
                        requirements through notice and comment 
                        rulemaking to eliminate the emissions causing 
                        such significant contribution.
            ``(B) The term `current classification' means the 
        classification of a downwind area under this section at the 
        time of the determination under paragraph (2).
            ``(2) Extension.--If the Administrator--
                    ``(A) determines that any area is a downwind area 
                with respect to a particular national ambient air 
                quality standard for ozone; and
                    ``(B) approves a plan revision for such area as 
                provided in paragraph (3) prior to a reclassification 
                under subsection (b)(2)(A),
        the Administrator, in lieu of such reclassification, shall 
        extend the attainment date for such downwind area for such 
        standard in accordance with paragraph (5).
            ``(3) Required approval.--In order to extend the attainment 
        date for a downwind area under this subsection, the 
        Administrator must approve a revision of the applicable 
        implementation plan for the downwind area for such standard 
        that--
                    ``(A) complies with all requirements of this Act 
                applicable under the current classification of the 
                downwind area, including any requirements applicable to 
                the area under section 172(c) for such standard; and
                    ``(B) includes any additional measures needed to 
                demonstrate attainment by the extended attainment date 
                provided under this subsection.
            ``(4) Prior reclassification determination.--If, no more 
        than 18 months prior to the date of enactment of this 
        subsection, the Administrator made a reclassification 
        determination under subsection (b)(2)(A) for any downwind area, 
        and the Administrator approves the plan revision referred to in 
        paragraph (3) for such area within 12 months after the date of 
        enactment of this subsection, the reclassification shall be 
        withdrawn and the attainment date extended in accordance with 
        paragraph (5) upon such approval. The Administrator shall also 
        withdraw a reclassification determination under subsection 
        (b)(2)(A) made after the date of enactment of this subsection 
        and extend the attainment date in accordance with paragraph (5) 
        if the Administrator approves the plan revision referred to in 
        paragraph (3) within 12 months of the date the reclassification 
        determination under subsection (b)(2)(A) is issued. In such 
        instances the `current classification' used for evaluating the 
        revision of the applicable implementation plan under paragraph 
        (3) shall be the classification of the downwind area under this 
        section immediately prior to such reclassification.
            ``(5) Extended date.--The attainment date extended under 
        this subsection shall provide for attainment of such national 
        ambient air quality standard for ozone in the downwind area as 
        expeditiously as practicable but no later than the date on 
        which the last reductions in pollution transport necessary for 
        attainment in the downwind area are required to be achieved by 
        the upwind area or areas.''.

SEC. 1444. 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--
            (1) 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,
            (2) electricity from a renewable source such as wind, 
        solar, or biomass, or
            (3) ethanol.
    (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. 1446. 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 as defined under section 2(a)(1)(A) of the Edible 
Oil Regulatory Reform Act (33 U.S.C. 2720(a)(1)(A)).

SEC. 1447. 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. RISK ASSESSMENT.

    ``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. 1448. OXYGEN-FUEL.

    (a) Program.--The Secretary of Energy 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. Cost sharing 
shall not be required.
    (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.

SEC. 1449. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH ASSESSMENT.

    (a) Establishment.--The Secretary of Energy 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. 1450. UNITED STATES-ISRAEL COOPERATION.

    (a) Findings.--The Congress finds that--
            (1) on February 1, 1996, United States Secretary of Energy 
        Hazel R. O'Leary and Israeli Minister of Energy and 
        Infrastructure Gonen Segev signed the Agreement between the 
        Department of Energy of the United States of America and the 
        Ministry of Energy and Infrastructure of Israel Concerning 
        Energy Cooperation, 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 one 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.--(1) The Secretary of Energy shall report 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate on--
            (A) how the United States and Israel have cooperated on 
        energy research and development activities under the Agreement;
            (B) projects initiated pursuant to the Agreement; and
            (C) plans for future cooperation and joint projects under 
        the Agreement.
    (2) The report shall be submitted no later than three months after 
the date of enactment of this Act.
    (c) Sense of Congress.--It is the sense of the Congress that energy 
cooperation between the Governments of the United States and Israel is 
mutually beneficial in the development of energy technology.

SEC. 1451. CARBON-BASED FUEL CELL DEVELOPMENT.

    (a) Grant Authority.--The Secretary of Energy is authorized to make 
a single grant to a qualified institution to design and fabricate a 5-
kilowatt prototype coal-based fuel cell with the following performance 
objectives:
            (1) A current density of 600 milliamps per square 
        centimeter at a cell voltage of 0.8 volts.
            (2) An operating temperature range not to exceed 900 
        degrees celsius.
    (b) Qualified Institution.--For the purposes of subsection (a), a 
qualified institution is a research-intensive institution of higher 
education with demonstrated expertise in the development of carbon-
based fuel cells allowing the direct use of high sulfur content coal as 
fuel, and which has produced a laboratory-scale carbon-based fuel cell 
with a proven current density of 100 milliamps per square centimeter at 
a voltage of 0.6 volts.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$850,000 for fiscal year 2006.

                   TITLE XV--ETHANOL AND MOTOR FUELS

                     Subtitle A--General Provisions

SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (q); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Ethanol.--(i) 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; and
                            ``(VI) fibers.
                    ``(ii) 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.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, 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 cellulosic biomass ethanol, 
                        waste derived ethanol, and 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).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which average aggregate daily 
                crude oil throughput for the calendar year (as 
                determined by dividing the aggregate throughput for the 
                calendar year by the number of days in the calendar 
                year) does not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) In general.--Not later than 1 year after the 
                enactment of this subsection, the Administrator shall 
                promulgate regulations ensuring that motor vehicle fuel 
                sold or dispensed to consumers in the contiguous United 
                States, on an annual average basis, contains the 
                applicable volume of renewable fuel as specified in 
                subparagraph (B). Regardless of the date of 
                promulgation, such regulations shall contain compliance 
                provisions for refiners, blenders, and importers, as 
                appropriate, to ensure that the requirements of this 
                section are met, but shall not restrict where renewable 
                fuel can be used, or impose any per-gallon obligation 
                for the use of renewable fuel. If the Administrator 
                does not promulgate such regulations, the applicable 
                percentage referred to in paragraph (4), on a volume 
                percentage of gasoline basis, shall be 2.2 in 2005.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2005 through 2012.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2005 through 2012 shall be determined in 
                        accordance with the following table:
                                    Applicable volume of renewable fuel
  ``Calendar year                              (in billions of gallons)
        2005...................................................     3.1
        2006...................................................     3.3
        2007...................................................     3.5
        2008...................................................     3.8
        2009...................................................     4.1
        2010...................................................     4.4
        2011...................................................     4.7
        2012...................................................     5.0
                            ``(ii) Calendar year 2013 and thereafter.--
                        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) 5.0 billion gallons 
                                        of renewable fuels; bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Non-contiguous state opt-in.--Upon the petition of a 
        non-contiguous State, the Administrator may allow the renewable 
        fuel program established by subtitle A of title XV of the 
        Energy Policy Act of 2005 to apply in such non-contiguous State 
        at the same time or any time after the Administrator 
        promulgates regulations under paragraph (2). The Administrator 
        may promulgate or revise regulations under paragraph (2), 
        establish applicable percentages under paragraph (4), provide 
        for the generation of credits under paragraph (6), and take 
        such other actions as may be necessary to allow for the 
        application of the renewable fuels program in a non-contiguous 
        State.
            ``(4) 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 of the volumes of gasoline that will be sold 
                or introduced into commerce in the United States during 
                the following calendar year.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each of the calendar years 2005 through 
                        2011, based on the estimate provided under 
                        subparagraph (A), the Administrator shall 
                        determine and publish in the Federal Register, 
                        with respect to the following calendar year, 
                        the renewable fuel obligation that ensures that 
                        the requirements of paragraph (2) are met.
                            ``(ii) Required elements.--The renewable 
                        fuel obligation determined for a calendar year 
                        under clause (i) shall--
                                    ``(I) be applicable to refiners, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of gasoline sold or 
                                introduced into commerce; 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 to 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 
                        (11).
            ``(5) Equivalency.--For the purpose of paragraph (2), 1 
        gallon of either cellulosic biomass ethanol or waste derived 
        ethanol--
                    ``(A) shall be considered to be the equivalent of 
                1.5 gallon of renewable fuel; or
                    ``(B) if the cellulostic biomass ethanol or waste 
                derived ethanol is derived from agricultural residue or 
                wood residue or is an agricultural byproduct (as that 
                term is used in section 919 of the Energy Policy Act of 
                2005), shall be considered to be the equivalent of 2.5 
                gallons of renewable fuel.
            ``(6) Credit program.--
                    ``(A) In general.--The regulations promulgated to 
                carry out this subsection shall provide for the 
                generation of an appropriate amount of credits by any 
                person that refines, blends, or imports gasoline that 
                contains a quantity of renewable fuel that is greater 
                than the quantity required under paragraph (2). Such 
                regulations shall provide for the generation of an 
                appropriate amount of credits for biodiesel fuel. If a 
                small refinery notifies the Administrator that it 
                waives the exemption provided paragraph (11), the 
                regulations shall provide for the generation of credits 
                by the small refinery beginning in the year following 
                such notification.
                    ``(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) Life of credits.--A credit generated under 
                this paragraph shall be valid to show compliance--
                            ``(i) in the calendar year in which the 
                        credit was generated or the next calendar year; 
                        or
                            ``(ii) in the calendar year in which the 
                        credit was generated or next two consecutive 
                        calendar years if the Administrator promulgates 
                        regulations under paragraph (7).
                    ``(D) Inability to purchase sufficient credits.--
                The regulations promulgated to carry out this 
                subsection shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements under paragraph (2) to 
                carry forward a renewable fuel deficit provided that, 
                in the calendar year following the year in which the 
                renewable fuel deficit is created, such person shall 
                achieve compliance with the renewable fuel requirement 
                under paragraph (2), and shall generate or purchase 
                additional renewable fuel credits to offset the 
                renewable fuel deficit of the previous year.
            ``(7) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of the calendar years 2005 
                through 2012, the Administrator of the Energy 
                Information Administration shall conduct a study of 
                renewable fuels blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuels.
                    ``(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 shall promulgate regulations to ensure 
                that 35 percent or more of the quantity of renewable 
                fuels necessary to meet the requirement of paragraph 
                (2) is used during each of the periods specified in 
                subparagraph (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuels necessary to meet the 
                        requirement of paragraph (2) has been used 
                        during one of the periods specified in 
                        subparagraph (D) of the calendar year;
                            ``(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 35 percent or more 
                        seasonal use of renewable fuels will not 
                        prevent or interfere with the attainment of 
                        national ambient air quality standards or 
                        significantly increase the price of motor fuels 
                        to the consumer.
                    ``(D) Periods.--The two periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusions.--Renewable fuels blended or 
                consumed in 2005 in a State which has received a waiver 
                under section 209(b) shall not be included in the study 
                in subparagraph (A).
            ``(8) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirement of 
                paragraph (2) in whole or in part on petition by one or 
                more States by reducing the national quantity of 
                renewable fuel required under this subsection--
                            ``(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 or distribution 
                        capacity to meet the requirement.
                    ``(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 requirement 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.
            ``(9) Study and waiver for initial year of program.--Not 
        later than 180 days after the enactment of this subsection, the 
        Secretary of Energy shall complete for the Administrator a 
        study assessing whether the renewable fuels requirement under 
        paragraph (2) will likely result in significant adverse 
        consumer impacts in 2005, on a national, regional, or State 
        basis. Such study shall evaluate renewable fuel supplies and 
        prices, blendstock supplies, and supply and distribution system 
        capabilities. Based on such study, the Secretary shall make 
        specific recommendations to the Administrator regarding waiver 
        of the requirements of paragraph (2), in whole or in part, to 
        avoid any such adverse impacts. Within 270 days after the 
        enactment of this subsection, the Administrator shall, 
        consistent with the recommendations of the Secretary, waive, in 
        whole or in part, the renewable fuels requirement under 
        paragraph (2) by reducing the national quantity of renewable 
        fuel required under this subsection in 2005. This paragraph 
        shall not be interpreted as limiting the Administrator's 
        authority to waive the requirements of paragraph (2) in whole, 
        or in part, under paragraph (8) or paragraph (10), pertaining 
        to waivers.
            ``(10) Assessment and waiver.--The Administrator, in 
        consultation with the Secretary of Energy and the Secretary of 
        Agriculture, shall evaluate the requirement of paragraph (2) 
        and determine, prior to January 1, 2007, and prior to January 1 
        of any subsequent year in which the applicable volume of 
        renewable fuel is increased under paragraph (2)(B), whether the 
        requirement of paragraph (2), including the applicable volume 
        of renewable fuel contained in paragraph (2)(B) should remain 
        in effect, in whole or in part, during 2007 or any year or 
        years subsequent to 2007. In evaluating the requirement of 
        paragraph (2) and in making any determination under this 
        section, the Administrator shall consider the best available 
        information and data collected by accepted methods or best 
        available means regarding--
                    ``(A) the capacity of renewable fuel producers to 
                supply an adequate amount of renewable fuel at 
                competitive prices to fulfill the requirement of 
                paragraph (2);
                    ``(B) the potential of the requirement of paragraph 
                (2) to significantly raise the price of gasoline, food 
                (excluding the net price impact on the requirement in 
                paragraph (2) on commodities used in the production of 
                ethanol), or heating oil for consumers in any 
                significant area or region of the country above the 
                price that would otherwise apply to such commodities in 
                the absence of such requirement;
                    ``(C) the potential of the requirement of paragraph 
                (2) to interfere with the supply of fuel in any 
                significant gasoline market or region of the country, 
                including interference with the efficient operation of 
                refiners, blenders, importers, wholesale suppliers, and 
                retail vendors of gasoline, and other motor fuels; and
                    ``(D) the potential of the requirement of paragraph 
                (2) to cause or promote exceedances of Federal, State, 
                or local air quality standards.
        If the Administrator determines, by clear and convincing 
        information, after public notice and the opportunity for 
        comment, that the requirement of paragraph (2) would have 
        significant and meaningful adverse impact on the supply of fuel 
        and related infrastructure or on the economy, public health, or 
        environment of any significant area or region of the country, 
        the Administrator may waive, in whole or in part, the 
        requirement of paragraph (2) in any one year for which the 
        determination is made for that area or region of the country, 
        except that any such waiver shall not have the effect of 
        reducing the applicable volume of renewable fuel specified in 
        paragraph (2)(B) with respect to any year for which the 
        determination is made. In determining economic impact under 
        this paragraph, the Administrator shall not consider the 
        reduced revenues available from the Highway Trust Fund (section 
        9503 of the Internal Revenue Code of 1986) as a result of the 
        use of ethanol.
            ``(11) Small refineries.--
                    ``(A) In general.--The requirement of paragraph (2) 
                shall not apply to small refineries until the first 
                calendar year beginning more than 5 years after the 
                first year set forth in the table in paragraph 
                (2)(B)(i). Not later than December 31, 2007, the 
                Secretary of Energy shall complete for the 
                Administrator a study to determine whether the 
                requirement of paragraph (2) would impose a 
                disproportionate economic hardship on small refineries. 
                For any small refinery that the Secretary of Energy 
                determines would experience a disproportionate economic 
                hardship, the Administrator shall extend the small 
                refinery exemption for such small refinery for no less 
                than two additional years.
                    ``(B) Economic hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        from the requirement of paragraph (2) for the 
                        reason of disproportionate economic hardship. 
                        In evaluating a hardship petition, the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study in addition to other 
                        economic factors.
                            ``(ii) 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 
                        receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that it waives the exemption provided 
                by this Act, the regulations shall provide for the 
                generation of credits by the small refinery beginning 
                in the year following such notification.
                    ``(D) Opt-in for small refiners.--A small refinery 
                shall be subject to the requirements of this section if 
                it notifies the Administrator that it waives the 
                exemption under subparagraph (A).
            ``(12) Ethanol market concentration analysis.--
                    ``(A) Analysis.--
                            ``(i) In general.--Not later than 180 days 
                        after the date of enactment of this subsection, 
                        and annually thereafter, the Federal Trade 
                        Commission shall perform a market concentration 
                        analysis of the ethanol production industry 
                        using the Herfindahl-Hirschman Index to 
                        determine whether there is sufficient 
                        competition among industry participants to 
                        avoid price setting and other anticompetitive 
                        behavior.
                            ``(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 as follows:
            (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)''.
            (2) In the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) 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 of Energy 
        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. FUELS SAFE HARBOR.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, no renewable fuel, as defined by section 211(o)(1) of the 
Clean Air Act, or methyl tertiary butyl ether (hereafter in this 
section referred to as ``MTBE''), used or intended to be used as a 
motor vehicle fuel, nor any motor vehicle fuel containing such 
renewable fuel or MTBE, shall be deemed a defective product by virtue 
of the fact that it is, or contains, such a renewable fuel or MTBE, if 
it does not violate a control or prohibition imposed by the 
Administrator of the Environmental Protection Agency (hereinafter in 
this section referred to as the ``Administrator'') under section 211 of 
such Act, and the manufacturer is in compliance with all requests for 
information under subsection (b) of such section 211 of such Act. If 
the safe harbor provided by this section does not apply, the existence 
of a claim of defective product shall be determined under otherwise 
applicable law. Nothing in this subsection shall be construed to affect 
the liability of any person for environmental remediation costs, 
drinking water contamination, negligence for spills or other reasonably 
foreseeable events, public or private nuisance, trespass, breach of 
warranty, breach of contract, or any other liability other than 
liability based upon a claim of defective product.
    (b) Effective Date.--This section shall be effective as of 
September 5, 2003, and shall apply with respect to all claims filed on 
or after that date.

SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE.

    (a) 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;
            (3) at the time of the adoption of the fuel oxygen 
        standard, Congress was aware that significant use of MTBE would 
        result from the adoption of that standard, and that the use of 
        MTBE would likely be important to the cost-effective 
        implementation of that program;
            (4) Congress was aware that gasoline and its component 
        additives can and do leak from storage tanks;
            (5) 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;
            (6) having previously required oxygenates like MTBE for air 
        quality purposes, Congress has--
                    (A) reconsidered the relative value of MTBE in 
                gasoline;
                    (B) decided to establish a date certain for action 
                by the Environmental Protection Agency to prohibit the 
                use of MTBE in gasoline; and
                    (C) decided to provide for the elimination of the 
                oxygenate requirement for reformulated gasoline and to 
                provide for a renewable fuels content requirement for 
                motor fuel; and
            (7) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act; and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from the elimination of the 
                oxygenate requirement for reformulated gasoline and 
                from the decision to establish a date certain for 
                action by the Environmental Protection Agency to 
                prohibit the use of MTBE in gasoline.
    (b) Purposes.--The purpose of this section is to provide assistance 
to merchant producers of MTBE in making the transition from producing 
MTBE to producing other fuel additives.
    (c) MTBE Merchant Producer Conversion Assistance.--Section 211(c) 
of the Clean Air Act (42 U.S.C. 7545(c)) is amended by adding at the 
end the following:
            ``(5) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with the Administrator, may make 
                        grants to merchant producers of methyl tertiary 
                        butyl ether (hereinafter in this subsection 
                        referred to as `MTBE') in the United States to 
                        assist the producers in the conversion of 
                        eligible production facilities described in 
                        subparagraph (C) to the production of iso-
                        octane, iso-octene, alkylates, or renewable 
                        fuels.
                            ``(ii) Determination.--The Administrator, 
                        in consultation with the Secretary of Energy, 
                        may determine that transition assistance for 
                        the production of iso-octane, iso-octene, 
                        alkylates, or renewable fuels is inconsistent 
                        with the provisions of subparagraph (B) and, on 
                        that basis, may deny applications for grants 
                        authorized by this paragraph.
                    ``(B) Further grants.--The Secretary of Energy, in 
                consultation with the Administrator, may also further 
                make grants to merchant producers of MTBE in the United 
                States to assist the producers in the conversion of 
                eligible production facilities described in 
                subparagraph (C) to the production of such other fuel 
                additives (unless the Administrator determines that 
                such fuel additives may reasonably be anticipated to 
                endanger public health or the environment) that, 
                consistent with this subsection--
                            ``(i) have been registered and have been 
                        tested or are being tested in accordance with 
                        the requirements of this section; and
                            ``(ii) will contribute to replacing 
                        gasoline volumes lost as a result of amendments 
                        made to subsection (k) of this section by 
                        section 1504(a) and 1506 of the Energy Policy 
                        Act of 2005.
                    ``(C) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced MTBE for consumption before 
                        April 1, 2003 and ceased production at any time 
                        after the date of enactment of this paragraph.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2005 
                through 2012, to remain available until expended.''.

SEC. 1504. USE OF MTBE.

    (a) In General.--Subject to subsections (e) and (f), not later than 
December 31, 2014, the use of methyl tertiary butyl ether (hereinafter 
in this section referred to as ``MTBE'') in motor vehicle fuel in any 
State other than a State described in subsection (c) is prohibited.
    (b) Regulations.--The Administrator of the Environmental Protection 
Agency (hereafter referred to in this section as the ``Administrator'') 
shall promulgate regulations to effect the prohibition in subsection 
(a).
    (c) States That Authorize Use.--A State described in this 
subsection is a State in which the Governor of the State submits a 
notification to the Administrator authorizing the use of MTBE in motor 
vehicle fuel sold or used in the State.
    (d) Publication of Notice.--The Administrator shall publish in the 
Federal Register each notice submitted by a State under subsection (c).
    (e) Trace Quantities.--In carrying out subsection (a), the 
Administrator may allow trace quantities of MTBE, not to exceed 0.5 
percent by volume, to be present in motor vehicle fuel in cases that 
the Administrator determines to be appropriate.
    (f) Limitation.--The Administrator, under authority of subsection 
(a), shall not prohibit or control the production of MTBE for export 
from the United States or for any other use other than for use in motor 
vehicle fuel.
    (g) Effect on State Law.--The amendments made by this title have no 
effect regarding any available authority of States to limit the use of 
methyl tertiary butyl ether in motor vehicle fuel.

SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND PRESIDENTIAL 
              DETERMINATION.

    (a) NAS Review.--Not later than May 31, 2013, the Secretary shall 
enter into an arrangement with the National Academy of Sciences to 
review the use of methyl tertiary butyl ether (hereafter referred to in 
this section as ``MTBE'') in fuel and fuel additives. The review shall 
only use the best available scientific information and data collected 
by accepted methods or the best available means. The review shall 
examine the use of MTBE in fuel and fuel additives, significant 
beneficial and detrimental effects of this use on environmental quality 
or public health or welfare including the costs and benefits of such 
effects, likely effects of controls or prohibitions on MTBE regarding 
fuel availability and price, and other appropriate and reasonable 
actions that are available to protect the environment or public health 
or welfare from any detrimental effects of the use of MTBE in fuel or 
fuel additives. The review shall be peer-reviewed prior to publication 
and all supporting data and analytical models shall be available to the 
public. The review shall be completed no later than May 31, 2014.
    (b) Presidential Determination.--No later than June 30, 2014, the 
President may make a determination that restrictions on the use of MTBE 
to be implemented pursuant to section 1504 shall not take place and 
that the legal authority contained in section 1504 to prohibit the use 
of MTBE in motor vehicle fuel shall become null and void.

SEC. 1506. 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 as follows:
                    (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).
                    (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).
                                    (II) by redesignating clause (iii) 
                                as clause (ii).
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect 270 days after the date of enactment of this Act, 
        except that such amendments shall take effect upon such date of 
        enactment in any State that has received a waiver under section 
        209(b) of the Clean Air 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 as follows:
            (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,''.
            (2) By adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated gasoline.--
                            ``(i) Definitions.--In this subparagraph 
                        the term `PADD' means a Petroleum 
                        Administration for Defense District.
                            ``(ii) Regulations regarding emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph the Administrator shall establish, 
                        for each refinery or importer, standards for 
                        toxic air pollutants from use of the 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer that maintain the 
                        reduction of the average annual aggregate 
                        emissions of toxic air pollutants for 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer during calendar 
                        years 1999 and 2000, determined on the basis of 
                        data collected by the Administrator with 
                        respect to the refinery or importer.
                            ``(iii) Standards applicable to specific 
                        refineries or importers.--
                                    ``(I) Applicability of standards.--
                                For any calendar year, the standards 
                                applicable to a refinery or importer 
                                under clause (ii) shall apply to the 
                                quantity of gasoline produced or 
                                distributed by the refinery or importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refinery or importer 
                                during calendar years 1999 and 2000.
                                    ``(II) Applicability of other 
                                standards.--For any calendar year, the 
                                quantity of gasoline produced or 
                                distributed by a refinery or importer 
                                that is in excess of the quantity 
                                subject to subclause (I) shall be 
                                subject to standards for toxic air 
                                pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(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 1999 and 2000; 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 1999 and 2000, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall--
                                            ``(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 refinery or 
                                        importer shall meet the 
                                        standards applicable under 
                                        clause (ii) not later than 
                                        April 1 of the year following 
                                        the report in subclause (II) 
                                        and for subsequent years.
                            ``(vi) Regulations to control hazardous air 
                        pollutants from motor vehicles and motor 
                        vehicle fuels.--Not later than July 1, 2005, 
                        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).''.
    (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.--Nothing in this section is intended to affect 
or prejudice either any legal claims or actions with respect to 
regulations promulgated by the Administrator of the Environmental 
Protection Agency (hereinafter in this subsection referred to as the 
``Administrator'') prior to the date of enactment of this Act regarding 
emissions of toxic air pollutants from motor vehicles or the adjustment 
of standards applicable to a specific refinery or importer made under 
such prior regulations and the Administrator may apply such adjustments 
to the standards applicable to such refinery or importer under clause 
(iii)(I) of section 211(k)(1)(B) of the Clean Air Act, except that--
            (1) the Administrator shall revise such adjustments to be 
        based only on calendar years 1999-2000; and
            (2) for adjustments based on toxic air pollutant emissions 
        from reformulated gasoline significantly below the national 
        annual average emissions of toxic air pollutants from all 
        reformulated gasoline, the Administrator may revise such 
        adjustments to take account of the scope of Federal or State 
        prohibitions on the use of methyl tertiary butyl ether imposed 
        after the date of the enactment of this paragraph, except that 
        any such adjustment shall require such refiner or importer, to 
        the greatest extent practicable, to maintain the reduction 
        achieved during calendar years 1999-2000 in the average annual 
        aggregate emissions of toxic air pollutants from reformulated 
        gasoline produced or distributed by the refinery or importer; 
        Provided, that any such adjustment shall not be made at a level 
        below the average percentage of reductions of emissions of 
        toxic air pollutants for reformulated gasoline supplied to PADD 
        I during calendar years 1999-2000.

SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
inserting after subsection (o) the following:
    ``(p) 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 subsection, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by subtitle A of title XV of the Energy 
                Policy Act of 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 
        subsection, as soon as the necessary data are available, the 
        Administrator shall develop and finalize an emissions model 
        that reasonably reflects the effects of gasoline 
        characteristics or components on emissions from vehicles in the 
        motor vehicle fleet during calendar year 2005.''.

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 is 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. REDUCING THE PROLIFERATION OF STATE FUEL CONTROLS.

    (a) EPA Approval of State Plans With Fuel Controls.--Section 
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended 
by adding at the end the following: ``The Administrator shall not 
approve a control or prohibition respecting the use of a fuel or fuel 
additive under this subparagraph unless the Administrator, after 
consultation with the Secretary of Energy, publishes in the Federal 
Register a finding that, in the Administrator's judgment, such control 
or prohibition will not cause fuel supply or distribution interruptions 
or have a significant adverse impact on fuel producibility in the 
affected area or contiguous areas.''.
    (b) Study.--The Administrator of the Environmental Protection 
Agency (hereinafter in this subsection referred to as the 
``Administrator''), in cooperation with the Secretary of Energy, shall 
undertake a study of the projected effects on air quality, the 
proliferation of fuel blends, fuel availability, and fuel costs of 
providing a preference for each of the following:
            (A) Reformulated gasoline referred to in subsection (k) of 
        section 211 of the Clean Air Act.
            (B) A low RVP gasoline blend that has been certified by the 
        Administrator as having a Reid Vapor Pressure of 7.0 pounds per 
        square inch (psi).
            (C) A low RVP gasoline blend that has been certified by the 
        Administrator as having a Reid Vapor Pressure of 7.8 pounds per 
        square inch (psi).
In carrying out such study, the Administrator shall obtain comments 
from affected parties. The Administrator shall submit the results of 
such study to the Congress not later than 18 months after the date of 
enactment of this Act, together with any recommended legislative 
changes.

SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency (hereinafter in this section referred to as 
        the ``Administrator'') and the Secretary of Energy 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 consumers in 
                various States and localities;
                    (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;
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refineries;
                            (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, refineries, 
                and fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while improving air quality at 
                the national, regional and local levels consistent with 
                the attainment of national ambient air quality 
                standards, could--
                            (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 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, the 
                reformulated gasoline program, the renewable content 
                requirements established by this subtitle, State 
                programs regarding gasoline volatility, and any other 
                requirements imposed by States or localities affecting 
                the composition of motor fuel.
    (b) Report.--
            (1) In general.--Not later than December 31, 2007, the 
        Administrator and the Secretary of Energy shall submit to 
        Congress a report on the results of the study conducted under 
        subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report under this subsection 
                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 under this 
        subsection, the Administrator and the Secretary of Energy shall 
        consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) motor vehicle fuel producers and distributors; 
                and
                    (D) the public.

SEC. 1511. 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 of Energy (hereinafter 
in this section referred to as 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. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED ETHANOL CONVERSION 
              ASSISTANCE.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
adding at the end the following:
    ``(r) Cellulosic Biomass and Waste-Derived Ethanol Conversion 
Assistance.--
            ``(1) In general.--The Secretary of Energy may provide 
        grants to merchant producers of cellulosic biomass ethanol and 
        waste-derived ethanol in the United States to assist the 
        producers in building eligible production facilities described 
        in paragraph (2) for the production of ethanol.
            ``(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 or waste-derived 
                feedstocks derived from agricultural residues, wood 
                residues, municipal solid waste, or agricultural 
                byproducts as that term is used in section 919 of the 
                Energy Policy Act of 2005.
            ``(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 2005.
                    ``(B) $250,000,000 for fiscal year 2006.
                    ``(C) $400,000,000 for fiscal year 2007.''.

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 
        C.F.R. 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 one 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.''.

            Subtitle B--Underground Storage Tank Compliance

SEC. 1521. SHORT TITLE.

    This subtitle may be cited as the ``Underground Storage Tank 
Compliance Act of 2005''.

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.
                            ``(iii) 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 C.F.R. 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 C.F.R. 280) or a 
        requirement or standard of a State program developed under 
        section 9004. The Administrator may extend for up to one 
        additional year the first 3-year inspection interval under this 
        paragraph if the State demonstrates that it has insufficient 
        resources to complete all such inspections within the first 3-
        year period.
            ``(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 of 
        2005, 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 of 2005;
                    ``(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 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 fuel delivery or 
        deposit.
            ``(2) Guidance.--Within 1 year after the date of enactment 
        of this section, the Administrator and States that receive 
        funding under this subtitle shall, in consultation with the 
        underground storage tank owner and product delivery industries, 
        for territory for which they are the primary implementing 
        agencies, publish guidelines detailing the specific processes 
        and procedures they will use to implement the provisions of 
        this section. The processes and procedures include, at a 
        minimum--
                    ``(A) the criteria for determining which 
                underground storage tank facilities are ineligible for 
                delivery or deposit;
                    ``(B) the mechanisms for identifying which 
                facilities are ineligible for delivery or deposit to 
                the underground storage tank owning and fuel delivery 
                industries;
                    ``(C) the process for reclassifying ineligible 
                facilities as eligible for delivery or deposit; and
                    ``(D) a delineation of, or a process for 
                determining, the specified geographic areas subject to 
                paragraph (4).
            ``(3) Delivery prohibition notice.--
                    ``(A) Roster.--The Administrator and each State 
                implementing agency that receives funding under this 
                subtitle shall establish within 24 months after the 
                date of enactment of this section a Delivery 
                Prohibition Roster listing underground storage tanks 
                under the Administrator's or the State's jurisdiction 
                that are determined to be ineligible for delivery or 
                deposit pursuant to paragraph (2).
                    ``(B) Notification.--The Administrator and each 
                State, as appropriate, shall make readily known, to 
                underground storage tank owners and operators and to 
                product delivery industries, the underground storage 
                tanks listed on a Delivery Prohibition Roster by:
                            ``(i) posting such Rosters, including the 
                        physical location and street address of each 
                        listed underground storage tank, on official 
                        web sites and, if the Administrator or the 
                        State so chooses, other electronic means;
                            ``(ii) updating these Rosters periodically; 
                        and
                            ``(iii) installing a tamper-proof tag, 
                        seal, or other device blocking the fill pipes 
                        of such underground storage tanks to prevent 
                        the delivery of product into such underground 
                        storage tanks.
                    ``(C) Roster updates.--The Administrator and the 
                State shall update the Delivery Prohibition Rosters as 
                appropriate, but not less than once a month on the 
                first day of the month.
                    ``(D) Tampering with device.--
                            ``(i) Prohibition.--It shall be unlawful 
                        for any person, other than an authorized 
                        representative of the Administrator or a State, 
                        as appropriate, to remove, tamper with, 
                        destroy, or damage a device installed by the 
                        Administrator or a State, as appropriate, under 
                        subparagraph (B)(iii) of this subsection.
                            ``(ii) Civil penalties.--Any person 
                        violating clause (i) of this subparagraph shall 
                        be subject to a civil penalty not to exceed 
                        $10,000 for each violation.
            ``(4) Limitation.--
                    ``(A) Rural and remote areas.--Subject to 
                subparagraph (B), the Administrator or a State shall 
                not include an underground storage tank on a Delivery 
                Prohibition Roster under paragraph (3) if an urgent 
                threat to public health, as determined by the 
                Administrator, does not exist and if such a delivery 
                prohibition would jeopardize the availability of, or 
                access to, fuel in any rural and remote areas.
                    ``(B) Applicability of limitation.--The limitation 
                under subparagraph (A) shall apply only during the 180-
                day period following the date of a determination by the 
                Administrator or the appropriate State that exercising 
                the authority of paragraph (3) is limited by 
                subparagraph (A).
    ``(b) Effect on State Authority.--Nothing in this section shall 
affect the authority of a State to prohibit the delivery 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 underground storage tank into which a 
regulated substance is delivered is not listed on the Administrator's 
or the appropriate State's Prohibited Delivery Roster 7 calendar days 
prior to the delivery being made.''.
    (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 one year, but additional exemptions may be granted for 
periods not to exceed one year upon the President's making a new 
determination. The President shall report each January to the Congress 
all exemptions from the requirements of this section granted during the 
preceding calendar year, together with his reason for granting each 
such exemption.
    ``(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 of 
        2005, each Federal agency that owns or operates 1 or more 
        underground storage tanks, or that manages land on which 1 or 
        more underground storage tanks are located, shall submit to the 
        Administrator, the Committee on Energy and Commerce of the 
        United States House of Representatives, and the Committee on 
        the Environment and Public Works of the United States Senate a 
        compliance strategy report that--
                    ``(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.
            ``(G) The Administrator may issue regulations or guidelines 
        implementing the requirements of this subsection.
            ``(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 manufacturers 
                        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.''.
    (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 9004(f) and 9005(c) 
                $100,000,000 for each of fiscal years 2005 through 
                2009; and
                    ``(D) to carry out sections 9011 and 9012 
                $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, 
        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)), 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 of Energy 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, preserves air quality standards, and 
        reduces motor fuel price volatility that results 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) 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. The 
        Administrator shall use sound and objective science practices, 
        shall consider the best available science, and shall consider 
        and include a description of the weight of the scientific 
        evidence.
            (4) 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.
            (5) 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 House of Representatives and the 
        Committee on Environment and Public Works of the Senate.
            (6) 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 ``Secretary'' means the Secretary of Energy.
            (3) 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.
            (4) 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--STUDIES

SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.

    (a) Definition.--For purposes of this section ``petroleum'' means 
crude oil, motor gasoline, jet fuel, distillates, and propane.
    (b) Study.--The Secretary of Energy shall conduct a study on 
petroleum and natural gas storage capacity and operational inventory 
levels, nationwide and by major geographical regions.
    (c) Contents.--The study shall address--
            (1) historical normal ranges for petroleum and natural gas 
        inventory levels;
            (2) historical and projected storage capacity trends;
            (3) estimated operation inventory levels below which 
        outages, delivery slowdown, rationing, interruptions in 
        service, or other indicators of shortage begin to appear;
            (4) explanations for inventory levels dropping below normal 
        ranges; and
            (5) the ability of industry to meet 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 of Energy shall submit a report to 
Congress on the results of the study, including findings and any 
recommendations for preventing future supply shortages.

SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall contract with the National Academy of 
Sciences for a study, to be completed within 1 year after the date of 
enactment of this Act, to examine whether the goals of energy 
efficiency standards are best served by measurement of energy consumed, 
and efficiency improvements, at the actual site of energy consumption, 
or through the full fuel cycle, beginning at the source of energy 
production. The Secretary shall submit the report to Congress.

SEC. 1606. 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 subject described in subsection (b).
    (d) Definitions.--As used in this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration of the 
        Department of Commerce.
            (4) 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.
            (5) Federal employee.--The term ``Federal employee'' has 
        the meaning provided the term ``employee'' by section 2105 of 
        title 5, United States Code.

SEC. 1607. 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. 1608. OIL BYPASS FILTRATION TECHNOLOGY.

    The Secretary of Energy 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. 1609. TOTAL INTEGRATED THERMAL SYSTEMS.

    The Secretary of Energy 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. 1610. UNIVERSITY COLLABORATION.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary of Energy shall transmit to Congress a report that examines 
the feasibility of promoting collaborations between large institutions 
of higher education and small institutions of higher education through 
grants, contracts, and cooperative agreements made by the Secretary for 
energy projects. The Secretary shall also consider providing incentives 
for the inclusion of small institutions of higher education, including 
minority-serving institutions, in energy research grants, contracts, 
and cooperative agreements.

SEC. 1611. RELIABILITY AND CONSUMER PROTECTION ASSESSMENT.

    Not later than 5 years after the date of enactment of this Act, and 
each 5 years thereafter, the Federal Energy Regulatory Commission shall 
assess the effects of the exemption of electric cooperatives and 
government-owned utilities from Commission regulation under section 
201(f) of the Federal Power Act. The assessment shall include any 
effects on--
            (1) reliability of interstate electric transmission 
        networks;
            (2) benefit to consumers, and efficiency, of competitive 
        wholesale electricity markets;
            (3) just and reasonable rates for electricity consumers; 
        and
            (4) the ability of the Commission to protect electricity 
        consumers.
If the Commission finds that the 201(f) exemption results in adverse 
effects on consumers or electric reliability, the Commission shall make 
appropriate recommendations to Congress pursuant to section 311 of the 
Federal Power Act.

SEC. 1612. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.

    The Secretary of Energy 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 United States 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. 1613. LOW-VOLUME GAS RESERVOIR STUDY.

    (a) Study.--The Secretary of Energy 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 of Energy 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.

                      TITLE XVII--RENEWABLE ENERGY

SEC. 1701. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
              ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, 
              PETROLEUM-BASED PRODUCT SUBSTITUTES, AND OTHER COMMERCIAL 
              PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Thousands of communities in the United States, many 
        located near Federal lands, are at risk to wildfire. 
        Approximately 190,000,000 acres of land managed by the 
        Secretary of Agriculture and the Secretary of the Interior are 
        at risk of catastrophic fire in the near future. The 
        accumulation of heavy forest fuel loads continues to increase 
        as a result of disease, insect infestations, and drought, 
        further raising the risk of fire each year.
            (2) In addition, more than 70,000,000 acres across all land 
        ownerships are at risk to higher than normal mortality over the 
        next 15 years from insect infestation and disease. High levels 
        of tree mortality from insects and disease result in increased 
        fire risk, loss of old growth, degraded watershed conditions, 
        and changes in species diversity and productivity, as well as 
        diminished fish and wildlife habitat and decreased timber 
        values.
            (3) Preventive treatments such as removing fuel loading, 
        ladder fuels, and hazard trees, planting proper species mix and 
        restoring and protecting early successional habitat, and other 
        specific restoration treatments designed to reduce the 
        susceptibility of forest land, woodland, and rangeland to 
        insect outbreaks, disease, and catastrophic fire present the 
        greatest opportunity for long-term forest health by creating a 
        mosaic of species-mix and age distribution. Such prevention 
        treatments are widely acknowledged to be more successful and 
        cost effective than suppression treatments in the case of 
        insects, disease, and fire.
            (4) The byproducts of preventive treatment (wood, brush, 
        thinnings, chips, slash, and other hazardous fuels) removed 
        from forest lands, woodlands and rangelands represent an 
        abundant supply of biomass for biomass-to-energy facilities and 
        raw material for business. There are currently few markets for 
        the extraordinary volumes of byproducts being generated as a 
        result of the necessary large-scale preventive treatment 
        activities.
            (5) The United States should--
                    (A) promote economic and entrepreneurial 
                opportunities in using byproducts removed through 
                preventive treatment activities related to hazardous 
                fuels reduction, disease, and insect infestation; and
                    (B) develop and expand markets for traditionally 
                underused wood and biomass as an outlet for byproducts 
                of preventive treatment activities.
    (b) Definitions.--In this section:
            (1) Biomass.--The term ``biomass'' means trees and woody 
        plants, including limbs, tops, needles, and other woody parts, 
        and byproducts of preventive treatment, such as wood, brush, 
        thinnings, chips, and slash, that are removed--
                    (A) to reduce hazardous fuels; or
                    (B) to reduce the risk of or to contain disease or 
                insect infestation.
            (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) 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, micro-business, or a 
                corporation that is incorporated in the United States; 
                and
                    (E) a nonprofit organization.
            (4) Preferred community.--The term ``preferred community'' 
        means--
                    (A) 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 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
                    (B) 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 land, 
                        the condition of which is at significant risk 
                        of catastrophic wildfire, disease, or insect 
                        infestation or which suffers from disease or 
                        insect infestation.
            (5) Secretary concerned.--The term ``Secretary concerned'' 
        means the Secretary of Agriculture or the Secretary of the 
        Interior.
    (c) Biomass Commercial Use Grant Program.--
            (1) In general.--The Secretary concerned may make grants to 
        any person that owns or operates a facility that uses biomass 
        as a raw material to produce electric energy, sensible heat, 
        transportation fuels, or substitutes for petroleum-based 
        products to offset the costs incurred to purchase biomass for 
        use by such facility.
            (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.
    (d) 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 the anticipated public benefits of the project, including 
        the potential to develop thermal or electric energy resources 
        or affordable energy, opportunities for the creation or 
        expansion of small businesses and micro-businesses, and the 
        potential for new job creation.
            (3) Grant amount.--A grant under this subsection may not 
        exceed $500,000.
    (e) 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.
    (f) 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 the 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. 1702. ENVIRONMENTAL REVIEW FOR RENEWABLE ENERGY PROJECTS.

    (a) Compliance With NEPA for Renewable Energy Projects.--
Notwithstanding any other law, in preparing an environmental assessment 
or environmental impact statement required under section 102 of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332) with respect 
to any action authorizing a renewable energy project under the 
jurisdiction of a Federal agency--
            (1) no Federal agency is required to identify alternative 
        project locations or actions other than the proposed action and 
        the no action alternative; and
            (2) no Federal agency is required to analyze the 
        environmental effects of alternative locations or actions other 
        than those submitted by the project proponent.
    (b) Consideration of Alternatives.--In any environmental assessment 
or environmental impact statement referred to in subsection (a), the 
Federal agency shall only identify and analyze the environmental 
effects and potential mitigation measures of--
            (1) the proposed action; and
            (2) the no action alternative.
    (c) Public Comment.--In preparing an environmental assessment or 
environmental impact statement referred to in subsection (a), the 
Federal agency shall only consider public comments that specifically 
address the preferred action and that are filed within 20 days after 
publication of a draft environmental assessment or draft environmental 
impact statement. Notwithstanding any other law, compliance with this 
subsection is deemed to satisfy section 102(2) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable 
regulations and administrative guidelines with respect to proposed 
renewable energy projects.
    (d) Renewable Energy Project Defined.--For purposes of this 
section, the term ``renewable energy project''--
            (1) means any proposal to utilize an energy source other 
        than nuclear power, coal, oil, or natural gas; and
            (2) includes the use of wind, solar, geothermal, biomass, 
        or tidal forces to generate energy.

SEC. 1703. 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.

                     TITLE XVIII--GEOTHERMAL ENERGY

SEC. 1801. SHORT TITLE.

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

SEC. 1802. 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 lands 
available for leasing at any time from qualified companies and 
individuals under this Act.
    ``(b) Competitive Lease Sale Required.--The Secretary shall hold a 
competitive lease sale at least once every 2 years for lands in a State 
which has nominations pending under subsection (a) if such lands are 
otherwise available for leasing. Lands that are subject to a mining 
claim for which a plan of operations has been approved by the relevant 
Federal land management agency are not available for competitive 
leasing.
    ``(c) Noncompetitive Leasing.--
            ``(1) Requirement.--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.
            ``(2) States without nominations.--In any State for which 
        there are no nominations received under subsection (a) and 
        having a total acreage under lease or the subject of an 
        application for lease of less than 10,000 acres, the Secretary 
        may designate lands available for 2 years for noncompetitive 
        leasing.
    ``(d) 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.
    ``(e) Area Subject to Lease for Geothermal Resources.--A geothermal 
lease for the use of geothermal resources shall embrace not more than 
the amount of acreage determined by the Secretary to be appropriate.''.

SEC. 1803. 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 paragraph (c) by redesignating subparagraphs (1) and 
        (2) as subparagraphs (A) and (B);
            (2) by redesignating paragraphs (a) through (d) in order as 
        paragraphs (1) through (4);
            (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; 
        and
            (4) by adding at the end the following:
    ``(b) Fees for Direct Use.--
            ``(1) In general.--Notwithstanding subsection (a)(1), with 
        respect to the direct use of geothermal resources for purposes 
        other than the commercial generation of electricity, the 
        Secretary of the Interior shall establish a schedule of fees 
        and collect fees pursuant to such a schedule in lieu of 
        royalties. Notwithstanding section 102(a)(9) of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1701(a)(9)), 
        the schedule of fees shall be based upon comparable non-Federal 
        fees charged for direct use of geothermal resources within the 
        State concerned. For direct use by a State or local government 
        for public purposes, the fee charged shall be nominal. Leases 
        in existence on the date of enactment of this subsection shall 
        be modified in order to reflect the provisions of this 
        subsection.
            ``(2) 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 encourage development of this 
                underutilized energy resource on the Federal estate; 
                and
                    ``(C) to contribute to sustainable economic 
                development opportunities for host communities.''.
    (b) Leasing for Direct Use.--Section 4 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1003) is further amended by adding at the end the 
following:
    ``(f) Leasing for Direct Use of Geothermal Resources.--Lands leased 
under this Act exclusively for direct use of geothermal resources shall 
be leased to any qualified applicant who first applies for such a lease 
under regulations issued by the Secretary, if--
            ``(1) the Secretary publishes a notice of the lands 
        proposed for leasing 60 days before the date of the issuance of 
        the lease; and
            ``(2) the Secretary does not receive in the 60-day period 
        beginning on the date of such publication any nomination to 
        include the lands concerned in the next competitive lease sale.
    ``(g) Area Subject to Lease for Direct Use.--A geothermal lease for 
the direct use of geothermal resources shall embrace not more than the 
amount of acreage determined by the Secretary to be reasonably 
necessary for such proposed utilization.''.
    (c) Existing Leases With a Direct Use Facility.--
            (1) Application to convert.--Any lessee under a lease under 
        the Geothermal Steam Act of 1970 that was issued before the 
        date of enactment of this Act may apply to the Secretary of the 
        Interior, by not later than 18 months after the date of 
        enactment of this Act, to convert such lease to a lease for 
        direct utilization of geothermal resources in accordance with 
        the amendments made by this section.
            (2) Conversion.--The Secretary shall approve such an 
        application and convert such a lease to a lease in accordance 
        with the amendments by not later than 180 days after receipt of 
        such application, unless the Secretary determines that the 
        applicant is not a qualified applicant with respect to the 
        lease.
            (3) 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 to the United States on 
        or after July 16, 2003.

SEC. 1804. 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;
            ``(3) to achieve the same long-term level of royalty 
        revenues to States and counties as the regulation in effect on 
        the date of enactment of this subsection; and
            ``(4) to reflect any change in profitability of operations 
        for which royalties will be paid due to the requirements 
        imposed by Federal agencies, including delays.
    ``(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), 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 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 before the date of enactment of 
        this Act may modify the terms of the lease relating to payment 
        of royalties to comply with the amendment made by subsection 
        (a), by applying to the Secretary of the Interior by not later 
        than 18 months after the date of enactment of this Act.
            (2) Application of modification.--Such modification shall 
        apply to any use of geothermal resources to which the amendment 
        applies that occurs after the date of that application.
            (3) Consultation.--The Secretary--
                    (A) shall consult with the State and local 
                governments affected by any proposed changes in lease 
                royalty terms under this subsection; and
                    (B) may establish royalty based on a gross proceeds 
                percentage within the range specified in the amendment 
                made by subsection (a)(1) and with the concurrence of 
                the lessee and the State.

SEC. 1805. EXPEDITING ADMINISTRATIVE ACTION FOR GEOTHERMAL LEASING.

    (a) Treatment of Geothermal Leasing With Respect to Federal Land 
Management Plan Requirements.--Section 15 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1014) is amended by adding at the end the following:
    ``(d) Treatment of Geothermal Leasing Under Federal Land Management 
Plans.--Geothermal leasing and development of Federal lands in 
accordance with this Act is deemed to be consistent with the management 
of National Forest System lands under section 6 of the Forest and 
Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604) and 
public lands under section 202 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1712). Land and resource management 
plans and land use plans in effect under such sections on the date of 
the enactment of this subsection are deemed to be adequate to proceed 
with the issuance of leases under this Act.''.
    (b) Lease Applications Pending on January 1, 2005.--
            (1) Priority.--It shall be a priority for the Secretary of 
        the Interior, and for the Secretary of Agriculture with respect 
        to National Forest Systems lands, to ensure timely completion 
        of administrative actions necessary to process applications for 
        geothermal leasing pending on January 1, 2005.
            (2) Applicable law.--An application referred to in 
        paragraph (1), and any lease issued pursuant to such an 
        application--
                    (A) except as provided in subparagraph (B), shall 
                be subject to this section as in effect on January 1, 
                2005; or
                    (B) at the election of the applicant, shall be 
                subject to this section as in effect on the effective 
                date of this paragraph.

SEC. 1806. 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--
                    (A) 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;
                    (B) making diligent efforts to directly contact the 
                lease applicants (including their heirs, assigns, or 
                estates); and
                    (C) ensuring that no lease application is rejected 
                except in compliance with all requirements regarding 
                diligent direct contact.
    (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. 1807. REVIEW AND REPORT TO CONGRESS.

    The Secretary of the Interior shall promptly review and report to 
Congress not later than 3 years after the date of enactment of this Act 
regarding the status of all withdrawals from leasing under the 
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) of Federal lands, 
specifying for each such area whether the basis for such withdrawal 
still applies.

SEC. 1808. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
              STUDIES.

    (a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001 
et seq.) is amended by adding at the end the following:

``SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES, DOCUMENTATION, 
              AND STUDIES.

    ``(a) In General.--The Secretary of the Interior shall issue 
regulations under which the Secretary shall reimburse a person that is 
a lessee, operator, operating rights owner, or applicant for any lease 
under this Act for reasonable amounts paid by the person for 
preparation for the Secretary by a contractor or other person selected 
by the Secretary of any project-level analysis, documentation, or 
related study required pursuant to the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease.
    ``(b) Conditions.--The Secretary may provide reimbursement under 
subsection (a) only if--
            ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
            ``(2) the person paid the costs voluntarily;
            ``(3) the person maintains records of its costs in 
        accordance with regulations issued by the Secretary;
            ``(4) the reimbursement is in the form of a reduction in 
        the Federal share of the royalty required to be paid for the 
        lease for which the analysis, documentation, or related study 
        is conducted, and is agreed to by the Secretary and the person 
        reimbursed prior to commencing the analysis, documentation, or 
        related study; and
            ``(5) the agreement required under paragraph (4) contains 
        provisions--
                    ``(A) reducing royalties owed on lease production 
                based on market prices;
                    ``(B) stipulating an automatic termination of the 
                royalty reduction upon recovery of documented costs; 
                and
                    ``(C) providing a process by which the lessee may 
                seek reimbursement for circumstances in which 
                production from the specified lease is not possible.''.
    (b) Application.--The amendment made by this section shall apply 
with respect to an analysis, documentation, or a related study 
conducted on or after the date of enactment of this Act for any lease 
entered into before, on, or after the date of enactment of this Act.
    (c) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendment made by this section by not 
later than 1 year after the date of enactment of this Act.

SEC. 1809. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

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

SEC. 1810. 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 field, or like area, is then subject to 
        any Unit Agreement (cooperative plan of development or 
        operation)), lessees thereof and their representatives may 
        unite with each other, or jointly or separately with others, in 
        collectively adopting and operating under a Unit Agreement for 
        such field, or like area, or any part thereof including direct 
        use resources, if determined and certified by the Secretary to 
        be necessary or advisable in the public interest. A majority 
        interest of lessees under any single lease shall have the 
        authority to commit that lease to a Unit Agreement. The 
        Secretary of the Interior may also initiate the formation of a 
        Unit Agreement, if such action is in the public interest.
            ``(2) Modification of lease requirements by secretary.--The 
        Secretary may, in the discretion of the Secretary, and with the 
        consent of the holders of leases involved, establish, alter, 
        change, or revoke rates of operations (including drilling, 
        operations, production, and other requirements) of such leases 
        and make conditions with reference to such leases, with the 
        consent of the lessees, in connection with the creation and 
        operation of any such Unit Agreement as the Secretary may deem 
        necessary or proper to secure the proper protection of the 
        public interest. Leases with unlike lease terms or royalty 
        rates do not need to be modified to be in the same unit.
    ``(b) Requirement of Plans Under New Leases.--The Secretary--
            ``(1) may provide that geothermal leases issued under this 
        Act shall contain a provision requiring the lessee to operate 
        under such a reasonable Unit Agreement; and
            ``(2) may prescribe such an Agreement under which such 
        lessee shall operate, which shall adequately protect the rights 
        of all parties in interest, including the United States.
    ``(c) Modification of Rate of Prospecting, Development, and 
Production.--The Secretary may require that any Agreement authorized by 
this section that applies to lands owned by the United States contain a 
provision under which authority is vested in the Secretary, or any 
person, committee, or State or Federal officer or agency as may be 
designated in the Agreement to alter or modify from time to time the 
rate of prospecting and development and the quantity and rate of 
production under such an Agreement.
    ``(d) Exclusion From Determination of Holding or Control.--Any 
lands that are subject to any Agreement approved or prescribed by the 
Secretary under this section shall not be considered in determining 
holdings or control under any provision of this Act.
    ``(e) Pooling of Certain Lands.--If separate tracts of lands cannot 
be independently developed and operated to use geothermal resources 
pursuant to any section of this Act--
            ``(1) such lands, or a portion thereof, may be pooled with 
        other lands, whether or not owned by the United States, for 
        purposes of development and operation under a Communitization 
        Agreement providing for an apportionment of production or 
        royalties among the separate tracts of land comprising the 
        production unit, if such pooling is determined by the Secretary 
        to be in the public interest; and
            ``(2) operation or production pursuant to such an Agreement 
        shall be treated as operation or production with respect to 
        each tract of land that is subject to the agreement.
    ``(f) Unit Agreement Review.--No more than 5 years after approval 
of any cooperative or Unit Agreement and at least every 5 years 
thereafter, the Secretary shall review each such Agreement and, after 
notice and opportunity for comment, eliminate from inclusion in such 
Agreement any lands that the Secretary determines are not reasonably 
necessary for Unit operations under the Agreement. Such elimination 
shall be based on scientific evidence, and shall occur only if it is 
determined by the Secretary to be for the purpose of conserving and 
properly managing the geothermal resource. Any land so eliminated shall 
be eligible for an extension under subsection (g) of section 6 if it 
meets the requirements for such an extension.
    ``(g) Drilling or Development Contracts.--The Secretary may, on 
such conditions as the Secretary may prescribe, approve drilling or 
development contracts made by 1 or more lessees of geothermal leases, 
with 1 or more persons, associations, or corporations if, in the 
discretion of the Secretary, the conservation of natural resources or 
the public convenience or necessity may require or the interests of the 
United States may be best served thereby. All leases operated under 
such approved drilling or development contracts, and interests 
thereunder, shall be excepted in determining holdings or control under 
section 7.
    ``(h) Coordination With State Governments.--The Secretary shall 
coordinate unitization and pooling activities with the appropriate 
State agencies and shall ensure that State leases included in any 
unitization or pooling arrangement are treated equally with Federal 
leases.''.

SEC. 1811. ROYALTY ON BYPRODUCTS.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is 
further amended in subsection (a) by striking paragraph (2) and 
inserting the following:
            ``(2) a royalty on any byproduct that is a mineral named 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 such mineral under a lease under that Act;''.

SEC. 1812. REPEAL OF AUTHORITIES OF SECRETARY TO READJUST TERMS, 
              CONDITIONS, RENTALS, AND ROYALTIES.

    Section 8 of the Geothermal Steam Act of 1970 (30 U.S.C. 1007) is 
amended by repealing subsection (b), and by redesignating subsection 
(c) as subsection (b).

SEC. 1813. CREDITING OF RENTAL TOWARD ROYALTY.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 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. 1814. 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 fifth year of the lease--
                    ``(A) the Secretary determined under subsection (c) 
                that the lessee satisfied the work commitment 
                requirements that applied to the lease for that year; 
                or
                    ``(B) the lessee paid in accordance with subsection 
                (d) the value of any work that was not completed in 
                accordance with those requirements.
            ``(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 (c) that the lessee 
        satisfied the work commitment requirements that applied to the 
        lease for that year.
    ``(b) Requirement to Satisfy Annual Work Commitment Requirement.--
            ``(1) In general.--The lessee for a geothermal lease shall, 
        for each year after the fifth year of the lease, satisfy work 
        commitment requirements prescribed by the Secretary that apply 
        to the lease for that year.
            ``(2) Prescription of work commitment requirements.--The 
        Secretary shall issue regulations prescribing minimum 
        equivalent dollar value work commitment requirements for 
        geothermal leases, that--
                    ``(A) require that a lessee, in each year after the 
                fifth year of the primary term of a geothermal lease, 
                diligently work to achieve commercial utilization of 
                geothermal resources under the lease;
                    ``(B) describe work that qualifies to meet these 
                requirements and factors, such as force majeure events, 
                that suspend or modify the work commitment obligation;
                    ``(C) carry forward and apply to work commitment 
                requirements for a year, work completed in any year in 
                the preceding 3-year period that was in excess of the 
                work required to be performed in that preceding year;
                    ``(D) 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--
                            ``(i) to allow achievement of production 
                        under the lease; or
                            ``(ii) to allow the lease to be included in 
                        a producing unit; and
                    ``(E) establish an annual payment that, at the 
                option of the lessee, may be exercised in lieu of 
                meeting any work requirement for a limited number of 
                years that the Secretary determines will not impair 
                achieving diligent development of the geothermal 
                resource.
            ``(3) Geothermal lease overlying mining claim.--
                    ``(A) 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.
                    ``(B) Termination of exemption.--An exemption under 
                this paragraph expires upon the termination of the 
                mining operations.
            ``(4) Termination of application of requirements.--Work 
        commitment requirements prescribed under this subsection shall 
        not apply to a geothermal lease after the date on which the 
        geothermal resource is utilized under the lease in commercial 
        quantities.
    ``(c) Determination of Whether Requirements Satisfied.--The 
Secretary shall, by not later than 90 days after the end of each year 
for which work commitment requirements under subsection (b) apply to a 
geothermal lease--
            ``(1) determine whether the lessee has satisfied the 
        requirements that apply for that year;
            ``(2) notify the lessee of that determination; and
            ``(3) in the case of a notification that the lessee did not 
        satisfy work commitment requirements for the year, include in 
        the notification--
                    ``(A) a description of the specific work that was 
                not completed by the lessee in accordance with the 
                requirements; and
                    ``(B) the amount of the dollar value of such work 
                that was not completed, reduced by the amount of 
                expenditures made for work completed in a prior year 
                that is carried forward pursuant to subsection 
                (b)(2)(D).
    ``(d) Payment of Value of Uncompleted Work.--
            ``(1) In general.--If the Secretary notifies a lessee that 
        the lessee failed to satisfy work commitment requirements under 
        subsection (b), the lessee shall pay to the Secretary, by not 
        later than the end of the 60-day period beginning on the date 
        of the notification, the dollar value of work that was not 
        completed by the lessee, in the amount stated in the 
        notification (as reduced under subsection (c)(3)(B)).
            ``(2) Failure to pay value of uncompleted work.--If a 
        lessee fails to pay such amount to the Secretary before the end 
        of that period, the lease shall terminate upon the expiration 
        of the period.
    ``(e) Continuation During Commercial Utilization.--
            ``(1) In general.--If a geothermal resource that is subject 
        to a geothermal lease is utilized in commercial quantities 
        within the primary term of the lease under subsection (a) 
        (including any extension of the lease under subsection (a)), 
        such lease shall continue until the date on which the 
        geothermal resource is no longer utilized in commercial 
        quantities.
            ``(2) Continuation of associated leases.--If a geothermal 
        lease is for an area in which there is injected fluid or steam 
        from a nearby geothermal resource for the purpose of 
        maintaining commercial utilization of a geothermal resource, 
        such lease shall continue until such commercial utilization is 
        terminated.
    ``(f) Conversion of Geothermal Lease to Mineral Lease.--A lessee 
under a lease for a geothermal resource that has been utilized for 
commercial production of electricity, has been determined by the 
Secretary to be incapable of any further commercial utilization, and is 
producing any valuable byproduct in payable quantities may, within 6 
months after such determination--
            ``(1) convert the lease to a mineral lease under the 
        Mineral Leasing Act (30 U.S.C. 181 et seq.) or under the 
        Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), 
        if the lands that are subject to the lease can be leased under 
        that Act for the production of such byproduct; or
            ``(2) convert the lease to a mining claim under the general 
        mining laws, if the byproduct is a locatable mineral.''.

SEC. 1815. ADVANCED ROYALTIES REQUIRED FOR SUSPENSION OF PRODUCTION.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is 
further amended by adding at the end the following:
    ``(f) Advanced Royalties Required for Suspension of Production.--
            ``(1) Continuation of lease following cessation of 
        production.--If, at any time after commercial production under 
        a geothermal lease is achieved, production ceases for any cause 
        the lease shall remain in full force and effect--
                    ``(A) during the 1-year period beginning on the 
                date production ceases; and
                    ``(B) after such period if, and so long as, the 
                lessee commences and continues diligently and in good 
                faith until such production is resumed the steps, 
                operations, or procedures necessary to cause a 
                resumption of such production.
            ``(2) Advance royalties following suspension of 
        production.--If production of heat or energy under a geothermal 
        lease is suspended after the date of any such production for 
        which royalty is required under subsection (a) and the terms of 
        paragraph (1) are not met, the Secretary shall require the 
        lessee, until the end of such suspension, to pay royalty in 
        advance at the monthly pro rata rate of the average annual rate 
        at which such royalty was paid each year in the 5-year-period 
        preceding the date of suspension.
            ``(3) Limitation on application.--Paragraph (2) shall not 
        apply if the suspension is required or otherwise caused by the 
        Secretary, the Secretary of a military department, a State or 
        local government, or a force majeure.''.

SEC. 1816. ANNUAL RENTAL.

    (a) Annual Rental Rate.--Section 5 of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004) is further amended in subsection (a) in paragraph 
(3) by striking ``$1 per acre or fraction thereof for each year of the 
lease'' and all that follows through the end of the paragraph and 
inserting ``$1 per acre or fraction thereof for each year of the lease 
through the tenth year in the case of a lease awarded in a 
noncompetitive lease sale; or $2 per acre or fraction thereof for the 
first year, $3 per acre or fraction thereof for each of the second 
through tenth years, in the case of a lease awarded in a competitive 
lease sale; and $5 per acre or fraction thereof for each year after the 
10th year thereof for all leases.''.
    (b) Termination of Lease for Failure to Pay Rental.--Section 5 of 
the Geothermal Steam Act of 1970 (30 U.S.C. 1004) 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 
        geothermal lease with respect to which rental is not paid in 
        accordance with this Act and the terms of the lease under which 
        the rental is required, upon the expiration of the 45-day 
        period beginning on the date of the failure to pay such rental.
            ``(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 geothermal lease that would 
        otherwise terminate under paragraph (1) shall not terminate 
        under that paragraph if the lessee pays to the Secretary, 
        before the end of the period referred to in paragraph (1), the 
        amount of rental due plus a late fee equal to 10 percent of 
        such amount.''.

SEC. 1817. 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.--Subject to appropriations, the Secretary may 
use amounts deposited under subsection (a) to implement the Geothermal 
Steam Act of 1970 and this Act.

SEC. 1818. REPEAL OF ACREAGE LIMITATIONS.

    Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C. 1006) is 
repealed.

SEC. 1819. 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(e) (30 U.S.C. 1001(e)) is amended to read as 
        follows:
            ``(e) `direct use' means utilization of geothermal 
        resources for commercial, residential, agricultural, public 
        facilities, off-grid generation of electricity, 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. 1820. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

    (a) Participation Authorized.--The Secretary of Energy, 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 of Energy, 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.

                         TITLE XIX--HYDROPOWER

SEC. 1901. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
              FACILITIES.

    (a) In General.--The Secretary of the Interior, the Secretary of 
Energy, 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. 1902. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

    (a) In General.--The Secretary of the Interior shall--
            (1) review electric power consumption by Bureau of 
        Reclamation facilities for water pumping purposes; and
            (2) make such adjustments in such pumping as possible to 
        minimize the amount of electric power consumed for such pumping 
        during periods of peak electric power consumption, including by 
        performing as much of such pumping as possible during off-peak 
        hours at night.
    (b) Consent of Affected Irrigation Customers Required.--The 
Secretary may not under this section make any adjustment in pumping at 
a facility without the consent of each person that has contracted with 
the United States for delivery of water from the facility for use for 
irrigation and that would be affected by such adjustment.
    (c) Existing Obligations not Affected.--This section shall not be 
construed to affect any existing obligation of the Secretary to provide 
electric power, water, or other benefits from Bureau of Reclamation 
facilities, including recreational releases.

SEC. 1903. 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.

                    TITLE XX--OIL AND GAS--RESOURCES

                   Subtitle A--Production Incentives

SEC. 2001. DEFINITION OF SECRETARY.

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

SEC. 2002. 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 section 36 of the Mineral 
Leasing Act (30 U.S.C. 192), section 27 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1353), or any other 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 oil or gas. If 
the Secretary makes such a demand, the following provisions apply to 
such 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 the lessee's royalty obligation for 
        the amount delivered, except that transportation and processing 
        reimbursements paid to, or deductions claimed by, the lessee 
        shall be subject to review and audit.
            (2) Marketable condition.--
                    (A) In general.--Royalty production shall be placed 
                in marketable condition by the lessee at no cost to the 
                United States.
                    (B) 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.
            (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 (in this paragraph referred to 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 
                the sale of oil taken in-kind, 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, 2005, the 
        Secretary shall submit to Congress a report that addresses--
                    (A) actions taken to develop businesses processes 
                and automated systems to fully support the royalty-in-
                kind capability to be used in tandem with the royalty-
                in-value approach in managing Federal oil and gas 
                revenue; and
                    (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 2005 through 2014 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 methodology or methodologies used by the 
                Secretary to determine compliance with subsection (d), 
                including the performance standard for comparing 
                amounts received by the United States derived from 
                royalties in-kind to amounts likely to have been 
                received had royalties been taken in-value;
                    (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, but not limited 
                to, administrative savings and any new or increased 
                administrative costs; and
                    (D) an evaluation of other relevant public benefits 
                or detriments associated with taking royalties in-kind.
    (f) Deduction of Expenses.--
            (1) 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 
        United States 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, and may 
        delegate management of any portion of the Federal royalty in-
        kind program to the State except as otherwise prohibited by 
        Federal law; and
            (2) shall consult annually with any State from which 
        Federal oil or gas royalty is being taken in-kind to ensure, to 
        the maximum extent practicable, that the royalty in-kind 
        program provides revenues to the State greater than or equal to 
        those likely to have been received had royalties been taken in-
        value.
    (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 such 
        refineries in the sale of any royalty oil accruing or reserved 
        to the United States under Federal oil and gas leases issued 
        under any mineral leasing law, for processing or use in such 
        refineries at private sale at not less than the market price.
            (2) Proration among refineries in production area.--In 
        disposing of oil under this subsection, the Secretary of Energy 
        may, at the discretion of the Secretary, prorate the oil among 
        refineries described in paragraph (1) in the area in which the 
        oil is produced.
    (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 transmit a report to 
        Congress, assessing the effectiveness of granting preferences 
        specified in paragraph (1) and providing a specific 
        recommendation on the continuation of authority to grant 
        preferences.

SEC. 2003. 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 million British thermal units of gas per well per day calculated 
based on the average over the 3 most recent production months, 
including only wells that produce on more than half of the days during 
those 3 production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such time as 
the Secretary issues regulations under subsection (e) that prescribe 
different thresholds or standards, the Secretary shall reduce the 
royalty rate on--
            (1) oil production from marginal properties as prescribed 
        in subsection (c) when the spot price of West Texas 
        Intermediate crude oil at Cushing, Oklahoma, is, on average, 
        less than $15 per barrel for 90 consecutive trading days; and
            (2) gas production from marginal properties as prescribed 
        in subsection (c) when the spot price of natural gas delivered 
        at Henry Hub, Louisiana, is, on average, less than $2.00 per 
        million British thermal units for 90 consecutive trading days.
    (c) Reduced Royalty Rate.--
            (1) 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 (d)(1)(A) 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 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 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.--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) Considerations.--In promulgating 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.
    (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. 2004. 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 35,000,000,000 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) Definition of ultra deep well.--In this subsection, the 
        term ``ultra deep well'' means a well drilled with a perforated 
        interval, the top of which is at least 20,000 feet true 
        vertical depth below the datum at mean sea level.
    (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 the 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) Limitation.--The Secretary may place limitations on the 
suspension of royalty relief granted based on market price.

SEC. 2005. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--For all tracts located in water depths of greater 
than 400 meters in the Western and Central Planning Area of the Gulf of 
Mexico, including 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 within 5 
years after the date of enactment of this Act shall use the bidding 
system authorized in section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)), except that the suspension of 
royalties shall be set at a volume of not less than--
            (1) 5,000,000 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.
    (b) Limitation.--The Secretary may place limitations on the 
suspension of royalty relief granted based on market price.

SEC. 2006. 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. 2007. 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) designated 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) of this 
section) 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.--Notwithstanding any other provision of law and 
pursuant to regulations issued by the Secretary, the Secretary shall 
conduct an expeditious program of competitive leasing of oil and gas in 
the National Petroleum Reserve in Alaska (referred to in this section 
as the `Reserve').
    ``(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--
                    ``(A) issued for an initial period of not more than 
                10 years; and
                    ``(B) renewed for successive 10-year terms if--
                            ``(i) oil or gas is produced from the lease 
                        in paying quantities;
                            ``(ii) oil or gas is capable of being 
                        produced in paying quantities; or
                            ``(iii) drilling or reworking operations, 
                        as approved by the Secretary, are conducted on 
                        the leased land.
            ``(2) Renewal of nonproducing leases.--The Secretary shall 
        renew for an additional 10-year term a lease that does not meet 
        the requirements of paragraph (1)(B) if the lessee submits to 
        the Secretary an application for renewal not later than 60 days 
        before the expiration of the primary lease and--
                    ``(A) the lessee certifies, and the Secretary 
                agrees, that hydrocarbon resources were discovered on 1 
                or more wells drilled on the leased land in such 
                quantities that a prudent operator would hold the lease 
                for potential future development;
                    ``(B) the lessee--
                            ``(i) pays the Secretary a renewal fee of 
                        $100 per acre of leased land; and
                            ``(ii) provides evidence, and the Secretary 
                        agrees that, the lessee has diligently pursued 
                        exploration that warrants continuation with the 
                        intent of continued exploration or future 
                        development of the leased land; or
                    ``(C) all or part of the lease--
                            ``(i) is part of a unit agreement covering 
                        a lease described in subparagraph (A) or (B); 
                        and
                            ``(ii) has not been previously contracted 
                        out of the unit.
            ``(3) Applicability.--This subsection applies to a lease 
        that--
                    ``(A) is entered into before, on, or after the date 
                of enactment of the Energy Policy Act of 2005; and
                    ``(B) is effective on or after the date of 
                enactment of that Act.
    ``(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.
            ``(2) Participation by state of alaska.--The Secretary 
        shall ensure that the State of Alaska is provided the 
        opportunity for active participation concerning creation and 
        management of units formed or expanded under this subsection 
        that include acreage in which the State of Alaska has an 
        interest in the mineral estate.
            ``(3) Participation by regional corporations.--The 
        Secretary shall ensure that any Regional Corporation (as 
        defined in section 3 of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602)) is provided the opportunity for active 
        participation concerning creation and management of units that 
        include acreage in which the Regional Corporation has an 
        interest in the mineral estate.
            ``(4) Production allocation methodology.--The Secretary may 
        use a production allocation methodology for each participating 
        area within a unit created for land in the Reserve, State of 
        Alaska land, or Regional Corporation land shall, when 
        appropriate, be based on the characteristics of each specific 
        oil or gas pool, field, reservoir, or like area to take into 
        account reservoir heterogeneity and a real variation in 
        reservoir producibility across diverse leasehold interests.
            ``(5) Benefit of operations.--Drilling, production,'';
            (9) by striking ``When separate'' and inserting the 
        following:
            ``(6) 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), if (after consultation with the State of 
                Alaska and the North Slope Borough of Alaska and the 
                concurrence of any Regional Corporation for leases that 
                include lands available for acquisition by the Regional 
                Corporation under the provisions of section 1431(o) of 
                the Alaska National Interest Lands Conservation Act (16 
                U.S.C. 3101 et seq.)) the Secretary determines that the 
                waiver, suspension, or reduction is in the public 
                interest.
                    ``(B) Applicability.--This paragraph applies to a 
                lease that--
                            ``(i) is entered into before, on, or after 
                        the date of enactment of the Energy Policy Act 
                        of 2005; and
                            ``(ii) is effective on or after the date of 
                        enactment of that Act.'';
            (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 clauses (A), (B), and (C) as clauses 
        (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 ``of the Naval Petroleum Reserves 
        Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''; and
            (20) by adding at the end the following:
    ``(o) Waiver of Administration for Conveyed Lands.--Notwithstanding 
section 14(g) of the Alaska Native Claims Settlement Act (43 U.S.C. 
1613(g)) or any other provision of law--
            ``(1) the Secretary of the Interior shall waive 
        administration of any oil and gas lease insofar as such lease 
        covers any land in the National Petroleum Reserve in Alaska in 
        which the subsurface estate is conveyed to the Arctic Slope 
        Regional Corporation; and
            ``(2) if any such conveyance of such subsurface estate does 
        not cover all the land embraced within any such oil and gas 
        lease--
                    ``(A) the person who owns the subsurface estate in 
                any particular portion of the land covered by such 
                lease shall be entitled to all of the revenues reserved 
                under such lease as to such portion, including, without 
                limitation, all the royalty payable with respect to oil 
                or gas produced from or allocated to such particular 
                portion of the land covered by such lease; and
                    ``(B) the Secretary of the Interior shall segregate 
                such lease into 2 leases, 1 of which shall cover only 
                the subsurface estate conveyed to the Arctic Slope 
                Regional Corporation, and operations, production, or 
                other circumstances (other than payment of rentals or 
                royalties) that satisfy obligations of the lessee 
                under, or maintain, either of the segregated leases 
                shall likewise satisfy obligations of the lessee under, 
                or maintain, the other segregated lease to the same 
                extent as if such segregated leases remained a part of 
                the original unsegregated lease.''.

SEC. 2008. 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) 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.
    (g) 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, but not as a condition of the 
                lease, that the lessee remediate, reclaim, and close in 
                accordance with standards established by the Secretary, 
                all orphaned wells on the land leased; and
                    (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 well 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 115 percent of the reasonable actual 
                costs of remediating, reclaiming, and closing the 
                orphaned well, through credits against the Federal 
                share of royalties or other means.
            (3) Effect of remediation, reclamation, or closure of well 
        pursuant to an approved remediation plan.--
                    (A) Definition of remediating party.--In this 
                paragraph the term ``remediating party'' means a person 
                who remediates, reclaims, or closes an abandoned, 
                orphaned, or idled well pursuant to this subsection.
                    (B) General rule.--A remediating party who 
                remediates, reclaims, or closes an abandoned, orphaned, 
                or idled well in accordance with a detailed written 
                remediation plan approved by the Secretary under this 
                subsection, shall be immune from civil liability under 
                Federal environmental laws, for--
                            (i) pre-existing environmental conditions 
                        at or associated with the well, unless the 
                        remediating party owns or operates, in the past 
                        owned or operated, or is related to a person 
                        that owns or operates or in the past owned or 
                        operated, the well or the land on which the 
                        well is located; or
                            (ii) any remaining releases of pollutants 
                        from the well during or after completion of the 
                        remediation, reclamation, or closure of the 
                        well, unless the remediating party causes 
                        increased pollution as a result of activities 
                        that are not in accordance with the approved 
                        remediation plan.
                    (C) Limitations.--Nothing in this section shall 
                limit in any way the liability of a remediating party 
                for injury, damage, or pollution resulting from the 
                remediating party's acts or omissions that are not in 
                accordance with the approved remediation plan, are 
                reckless or willful, constitute gross negligence or 
                wanton misconduct, or are unlawful.
            (4) Regulations.--The Secretary may issue such regulations 
        as are appropriate to carry out this subsection.
    (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. 2009. 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. 2010. 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, 
                transportation, or storage of oil, natural gas, or 
                other minerals;
                    ``(B) produce or support production, 
                transportation, or transmission of energy from sources 
                other than oil and gas; or
                    ``(C) use, for energy-related or marine-related 
                purposes, facilities currently or previously used for 
                activities authorized under this Act.
            ``(2) Payments.--The Secretary shall establish reasonable 
        forms of payments for any easement or right-of-way granted 
        under this subsection. Such payments shall not be assessed on 
        the basis of throughput or production. The Secretary may 
        establish fees, rentals, bonus, or other payments by rule or by 
        agreement with the party to which the lease, easement, or 
        right-of-way is granted. If a lease, easement, right-of-way, 
        license, or permit under this subsection covers a specific 
        tract of, or regards a facility located on, the outer 
        Continental Shelf and is not an easement or right-of-way for 
        transmission or transportation of energy, minerals, or other 
        natural resources, the Secretary shall pay 50 percent of any 
        amount received from the holder of the lease, easement, right-
        of-way, license, or permit to the State off the shore of which 
        the geographic center of the area covered by the lease, 
        easement, right-of-way, license, permit, or facility is 
        located, in accordance with Federal law determining the seaward 
        lateral boundaries of the coastal States.
            ``(3) Consultation.--Before exercising authority under this 
        subsection, the Secretary shall consult with the Secretary of 
        Defense and other appropriate agencies concerning issues 
        related to national security and navigational obstruction.
            ``(4) Competitive or noncompetitive basis.--
                    ``(A) In general.--The Secretary may issue a lease, 
                easement, or right-of-way for energy and related 
                purposes as described in paragraph (1) on a competitive 
                or noncompetitive basis.
                    ``(B) Considerations.--In determining whether a 
                lease, easement, or right-of-way shall be granted 
                competitively or noncompetitively, the Secretary shall 
                consider such factors as--
                            ``(i) prevention of waste and conservation 
                        of natural resources;
                            ``(ii) the economic viability of an energy 
                        project;
                            ``(iii) protection of the environment;
                            ``(iv) the national interest and national 
                        security;
                            ``(v) human safety;
                            ``(vi) protection of correlative rights; 
                        and
                            ``(vii) potential return for the lease, 
                        easement, or right-of-way.
            ``(5) 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 the Department in which 
        the Coast Guard is operating and other relevant agencies of the 
        Federal Government and affected States, shall issue any 
        necessary regulations to ensure safety, protection of the 
        environment, prevention of waste, and conservation of the 
        natural resources of the outer Continental Shelf, protection of 
        national security interests, and protection of correlative 
        rights in the outer Continental Shelf.
            ``(6) Security.--The Secretary shall require the holder of 
        a lease, easement, or right-of-way granted under this 
        subsection to furnish a surety bond or other form of security, 
        as prescribed by the Secretary, and to comply with such other 
        requirements as the Secretary considers necessary to protect 
        the interests of the United States.
            ``(7) 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.
            ``(8) Applicability.--This subsection does not apply to any 
        area on the outer Continental Shelf designated as a National 
        Marine Sanctuary.''.
    (b) 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.--''.
    (c) Savings Provision.--Nothing in the amendment made by subsection 
(a) requires, with respect to any project--
            (1) for which offshore test facilities have been 
        constructed before the date of enactment of this Act; or
            (2) for which a request for proposals has been issued by a 
        public authority,
any resubmittal of documents previously submitted or any 
reauthorization of actions previously authorized.

SEC. 2011. 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. 2012. 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. 2013. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY 
              DETERMINATION UNDER THE COASTAL ZONE MANAGEMENT ACT OF 
              1972.

    (a) In General.--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.--The Secretary shall publish an initial 
notice in the Federal Register not later than 30 days after the date of 
the filing of any appeal to the Secretary of a consistency 
determination under section 307.
    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 120-day 
        period beginning on the date of publication of an initial 
        notice under subsection (a), the Secretary shall receive no 
        more filings on the appeal and the administrative record 
        regarding the appeal shall be closed.
            ``(2) Notice.--Upon the closure of the administrative 
        record, the Secretary shall immediately publish a notice that 
        the administrative record has been closed.
    ``(c) Deadline for Decision.--The Secretary shall issue a decision 
in any appeal filed under section 307 not later than 120 days after the 
closure of the administrative record.
    ``(d) Application.--This section applies to appeals initiated by 
the Secretary and appeals filed by an applicant.''.
    (b) Application.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        any appeal initiated or filed before, on, or after the date of 
        enactment of this Act.
            (2) Limitation.--Subsection (a) of section 319 of the 
        Coastal Zone Management Act of 1972 (as amended by subsection 
        (a)) shall not apply with respect to an appeal initiated or 
        filed before the date of enactment of this Act.
    (c) Closure of Record for Appeal Filed Before Date of Enactment.--
Notwithstanding section 319(b)(1) of the Coastal Zone Management Act of 
1972 (as amended by this section), in the case of an appeal of a 
consistency determination under section 307 of that Act initiated or 
filed before the date of enactment of this Act, the Secretary of 
Commerce shall receive no more filings on the appeal and the 
administrative record regarding the appeal shall be closed not later 
than 120 days after the date of enactment of this Act.

SEC. 2014. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
              STUDIES.

    (a) In General.--The Mineral Leasing Act is amended by inserting 
after section 37 (30 U.S.C. 193) the following:

   ``reimbursement for costs of certain analyses, documentation, and 
                                studies

    ``Sec. 38. (a) In General.--The Secretary of the Interior shall 
issue regulations under which the Secretary shall reimburse a person 
that is a lessee, operator, operating rights owner, or applicant for 
any lease under this Act for reasonable amounts paid by the person for 
preparation for the Secretary by a contractor or other person selected 
by the Secretary of any project-level analysis, documentation, or 
related study required pursuant to the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease.
    ``(b) Conditions.--The Secretary may provide reimbursement under 
subsection (a) only if--
            ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
            ``(2) the person paid the costs voluntarily;
            ``(3) the person maintains records of its costs in 
        accordance with regulations issued by the Secretary;
            ``(4) the reimbursement is in the form of a reduction in 
        the Federal share of the royalty required to be paid for the 
        lease for which the analysis, documentation, or related study 
        is conducted, and is agreed to by the Secretary and the person 
        reimbursed prior to commencing the analysis, documentation, or 
        related study; and
            ``(5) the agreement required under paragraph (4) contains 
        provisions--
                    ``(A) reducing royalties owed on lease production 
                based on market prices;
                    ``(B) stipulating an automatic termination of the 
                royalty reduction upon recovery of documented costs; 
                and
                    ``(C) providing a process by which the lessee may 
                seek reimbursement for circumstances in which 
                production from the specified lease is not possible.''.
    (b) Application.--The amendment made by this section shall apply 
with respect to an analysis, documentation, or a related study 
conducted on or after the date of enactment of this Act for any lease 
entered into before, on, or after the date of enactment of this Act.
    (c) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendment made by this section by not 
later than 1 year after the date of enactment of this Act.

SEC. 2015. GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote natural gas 
production from the abundant 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 of the Interior shall grant 
        royalty relief in accordance with this section for natural gas 
        produced from gas hydrate resources under any lease that is an 
        eligible lease under paragraph (2).
            (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 
                the gas hydrate resources commences prior to January 1, 
                2018.
            (3) Amount of relief.--The Secretary shall grant royalty 
        relief under this section as a suspension volume of at least 50 
        billion cubic feet of natural gas produced from gas hydrate 
        resources per 9 square mile leased tract. 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. The minimum 
        suspension volume under this section for leased tracts that are 
        smaller or larger than nine square miles shall be adjusted on a 
        proportional basis.
            (4) Limitation.--The Secretary may place limitations on the 
        suspension of royalty relief granted 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.--The Secretary shall complete any rulemakings 
implementing this section within 1 year after the date of enactment of 
this Act.
    (e) Gas Hydrate Resources Defined.--In this section, the term ``gas 
hydrate resources'' includes 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.

SEC. 2016. ONSHORE DEEP GAS PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote natural gas 
production from the abundant onshore deep gas resources on Federal 
lands by providing royalty incentives.
    (b) Suspension of Royalties.--
            (1) In general.--The Secretary shall grant royalty relief 
        in accordance with this section for natural gas produced from 
        deep wells spudded after the date of enactment of this Act 
        under any onshore Federal oil and gas lease.
            (2) Amount of relief.--The Secretary shall grant royalty 
        relief under this section as a suspension volume determined by 
        the Secretary in an amount necessary to maximize production of 
        natural gas volumes. The maximum suspension volume shall be 50 
        billion cubic feet of natural gas per lease. Such royalty 
        suspension volume shall be applied beginning with the first 
        dollar of royalty obligation for production on or after the 
        date of enactment of this Act.
            (3) Limitation.--The Secretary may place limitations on the 
        suspension of royalty relief granted based on market price.
    (c) Application.--This section shall apply to any onshore Federal 
oil and gas lease issued before, on, or after the date of enactment of 
this Act.
    (d) Rulemakings.--
            (1) Requirement.--The Secretary shall complete any 
        rulemakings implementing this section within 1 year after the 
        date of enactment of this Act.
            (2) Definition of deep well.--Such regulations shall 
        include a definition of the term ``deep well'' for purposes of 
        this section.

SEC. 2017. ENHANCED OIL AND NATURAL GAS PRODUCTION INCENTIVE.

    (a) Findings.--Congress finds the following:
            (1) Approximately two-thirds of the original oil in place 
        in the United States remains unproduced.
            (2) 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 in the 
        United States by 2 million barrels of oil equivalent per day, 
        or more.
            (3) Collection of carbon dioxide and other appropriate 
        gases from industrial facilities could provide a significant 
        source of these gases that could be permanently sequestered 
        into oil and natural gas fields.
            (4) Such collection could be made economic by providing 
        production incentives to oil and natural gas lessees.
            (5) Providing production incentives for enhanced oil and 
        natural gas production would promote significant advances in 
        emissions control and capture technology.
            (6) Capturing and productively using industrial emissions 
        of carbon dioxide would help reduce the carbon intensity of the 
        economy.
            (7) Enhanced production of oil and natural gas lessens the 
        potential for environmental impacts when compared with 
        development of new oil and natural gas fields because the 
        infrastructure, such as wells, pipelines, and platforms, is 
        generally already in place.
    (b) Purpose.--The purpose of this section is--
            (1) to promote the capturing, transportation, and injection 
        of produced carbon dioxide, natural carbon dioxide, and other 
        appropriate gases for sequestration into oil and gas fields; 
        and
            (2) to promote oil and natural gas production from the 
        abundant resources on the outer Continental Shelf and onshore 
        Federal lands by enhancing recovery of oil or natural gas (or 
        both).
    (c) Suspension of Royalties.--
            (1) In general.--The Secretary of the Interior shall grant 
        a royalty relief in accordance with this section for production 
        of oil or natural gas (or both) from lands subject to an 
        eligible lease into which the lessee injects carbon dioxide, or 
        other appropriate gas or other matter approved by the 
        Secretary, for the purpose of enhancing recovery of oil or 
        natural gas (or both) from the eligible lease.
            (2) Eligible leases.--A lease shall be an eligible lease 
        for purposes of this section if it is a lease for production of 
        oil or gas (or both) from Federal outer Continental Shelf or 
        onshore lands that the Secretary determines may contain a 
        volume of oil or natural gas that would not likely be produced 
        without royalty relief under this subsection.
            (3) Amount of relief.--The Secretary shall grant royalty 
        relief under this section as a suspension volume determined by 
        the Secretary in an amount necessary to maximize production of 
        oil and natural gas volumes. The maximum suspension volume 
        shall be 50 billion cubic feet of natural gas, or equivalent 
        oil volume on a Btu basis, or a combination thereof, per 
        eligible lease.
            (4) Limitation.--The Secretary may place limitations on the 
        suspension of royalty relief granted based on market price.
    (d) Application.--This section shall apply to any eligible lease 
issued before, on, or after the date of enactment of this Act.
    (e) Rulemakings.--The Secretary shall complete any rulemakings 
implementing this provision within 1 year after the date of enactment 
of this Act.

SEC. 2018. OIL SHALE.

    (a) Finding.--Congress finds that oil shale resources located 
within the United States--
            (1) total almost 2 trillion barrels of oil in place; and
            (2) are a strategically important domestic resource that 
        should be developed on an accelerated basis to reduce our 
        growing reliance on politically and economically unstable 
        sources of foreign oil imports.
    (b) Requirement to Develop Oil Shale Leasing Program.--The 
Secretary of the Interior shall develop a Federal commercial oil shale 
leasing program as soon as practicable and publish a final regulation 
implementing such program by not later than December 31, 2006.
    (c) Commencement of Lease Sales.--The Secretary shall hold the 
first oil shale lease sale under such program within 180 days after 
publishing the final regulation.
    (d) Report.--Within 90 days after the date of enactment of this 
Act, the Secretary 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 under subsection (b);
                    (B) promulgate the final regulation under 
                subsection (b); and
                    (C) conduct the first lease sale under the program 
                under subsection (b); and
            (2) a schedule for completing such actions.
    (e) Oil Shale Land Exchanges.--
            (1) Requirement.--The Secretary shall identify and pursue 
        to completion oil shale land exchanges, on a value-for-value 
        basis, that will allow qualified oil shale developers to have 
        early access to currently owned Federal oil shale lands and to 
        commence commercial oil shale development.
            (2) Applicable law.--The Secretary shall conduct land 
        exchanges under this subsection in accordance with the Federal 
        Land Policy Management Act of 1976 (43 U.S.C. 1701 et seq.) and 
        the Federal Land Exchange Facilitation Act of 1988 (43 U.S.C. 
        1701 note).

SEC. 2019. USE OF INFORMATION ABOUT OIL AND GAS PUBLIC CHALLENGES.

    (a) Findings.--Congress finds the following:
            (1) The Government Accountability Office (in this section 
        referred to as the ``GAO''), in report GAO-05-124, found that 
        the Bureau of Land Management does not systematically gather 
        and use nationwide information on public challenges to manage 
        its oil and gas program.
            (2) The GAO found that this failure prevents the Director 
        of the Bureau from assessing the impact of public challenges on 
        the workload of the Bureau of Land Management State offices and 
        eliminates the ability of the Director to make appropriate 
        staffing and funding resource allocation decisions.
    (b) Requirement.--The Secretary of the Interior and the Secretary 
of Agriculture shall systematically collect and use nationwide 
information on public challenges to manage the oil and gas programs of 
the bureaus within their departments. The Secretaries shall gather such 
information at the planning, leasing, exploration, and development 
stages, and shall maintain such information electronically with current 
data.

                   Subtitle B--Access to Federal Land

SEC. 2021. OFFICE OF FEDERAL ENERGY PROJECT COORDINATION.

    (a) Establishment.--The President shall establish the Office of 
Federal Energy Project Coordination (referred to in this section as the 
``Office'') within the Executive Office of the President in the same 
manner and with the same mission as the White House Energy Projects 
Task Force established by Executive Order No. 13212 (42 U.S.C. 13201 
note).
    (b) Staffing.--The Office shall be staffed by functional experts 
from relevant Federal agencies on a nonreimbursable basis to carry out 
the mission of the Office.
    (c) Report.--The Office shall transmit an annual report to Congress 
that describes the activities put in place to coordinate and expedite 
Federal decisions on energy projects. The report shall list 
accomplishments in improving the Federal decisionmaking process and 
shall include any additional recommendations or systemic changes needed 
to establish a more effective and efficient Federal permitting process.

SEC. 2022. 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. 2023. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--To ensure timely action 
on oil and gas leases and applications for permits to drill on land 
otherwise available for leasing, the Secretary of the Interior (in this 
section referred to as the ``Secretary'') shall--
            (1) ensure expeditious compliance with section 102(2)(C) of 
        the National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C));
            (2) improve consultation and coordination with the States 
        and the public; and
            (3) improve the collection, storage, and retrieval of 
        information relating to the 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 lands 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 2022.
            (3) Regulations.--Not later than 180 days after the 
        development of best management practices under paragraph (1), 
        the Secretary shall publish, for public comment, proposed 
        regulations that set forth specific timeframes for processing 
        leases and applications in accordance with the practices, 
        including deadlines for--
                    (A) approving or disapproving resource management 
                plans and related documents, lease applications, and 
                surface use plans; and
                    (B) related administrative appeals.
    (c) Improved Enforcement.--The Secretary shall improve inspection 
and enforcement of oil and gas activities, including enforcement of 
terms and conditions in permits to drill.
    (d) Authorization of Appropriations.--In addition to amounts 
authorized to be appropriated to carry out section 17 of the Mineral 
Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to 
the Secretary for each of fiscal years 2006 through 2009--
            (1) $40,000,000 to carry out subsections (a) and (b); and
            (2) $20,000,000 to carry out subsection (c).

SEC. 2024. 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 lands under the jurisdiction of the Secretary of 
        the Interior; and
            (2) National Forest System lands 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 oil and gas lease 
        applications, surface use plans of operation, and applications 
        for permits to drill, including steps for processing surface 
        use plans and applications for permits to drill consistent with 
        the timelines established by the amendment made by section 
        2028;
            (2) eliminate duplication of effort by providing for 
        coordination of planning and environmental compliance efforts; 
        and
            (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.
    (c) Data Retrieval System.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Interior and the 
        Secretary of Agriculture shall establish a joint data retrieval 
        system that is capable of--
                    (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.
            (2) Resource mapping.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary of the Interior 
        and the Secretary of Agriculture shall establish a joint 
        Geographic Information System mapping system for use in--
                    (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. 2025. 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. 2026. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS CONCERNING 
              REGULATIONS THAT SIGNIFICANTLY AFFECT ENERGY SUPPLY, 
              DISTRIBUTION, OR USE.

    (a) Requirement.--The head of each Federal agency shall require 
that before the Federal agency takes any action that could have a 
significant adverse effect on the supply of domestic energy resources 
from Federal public land, the Federal agency taking the action shall 
comply with Executive Order No. 13211 (42 U.S.C. 13201 note).
    (b) Guidance.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Energy shall publish guidance for 
purposes of this section describing what constitutes a significant 
adverse effect on the supply of domestic energy resources under 
Executive Order No. 13211 (42 U.S.C. 13201 note).
    (c) Memorandum of Understanding.--The Secretary of the Interior and 
the Secretary of Agriculture shall include in the memorandum of 
understanding under section 2024 provisions for implementing subsection 
(a) of this section.

SEC. 2027. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (in this section 
referred to as the ``Secretary'') shall establish a Federal Permit 
Streamlining Pilot Project (in this section referred to 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 with the Secretary of Agriculture, 
        the Administrator of the Environmental Protection Agency, and 
        the Chief of Engineers of the Army Corps of Engineers for 
        purposes of this section.
            (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 assign to each of the 
        field offices identified in subsection (d), on a 
        nonreimbursable basis, an employee who has expertise in the 
        regulatory issues relating to the office in which the employee 
        is employed, including, as applicable, particular expertise 
        in--
                    (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) Glenwood Springs, Colorado.
            (7) Vernal, Utah.
    (e) Reports.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall transmit 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) 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. 2028. 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; or
                    ``(B)(i) defer decision on the permit; and
                    ``(ii) provide to the applicant a notice that 
                specifies any steps that the applicant could take for 
                the permit to be issued.
            ``(3) Requirements for deferred applications.--
                    ``(A) In general.--If the Secretary provides notice 
                under paragraph (2)(B)(ii), the applicant shall have a 
                period of 2 years from the date of receipt of the 
                notice in which to complete all requirements specified 
                by the Secretary, including providing information 
                needed for compliance with the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.).
                    ``(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).
                    ``(C) Denial of permit.--If the applicant does not 
                complete the requirements within the period specified 
                in subparagraph (A), the Secretary shall deny the 
                permit.
    ``(q) Report.--On a quarterly basis, each field office of the 
Bureau of Land Management and the Forest Service shall transmit to the 
Secretary of the Interior or the Secretary of Agriculture, 
respectively, a report that--
            ``(1) specifies the number of applications for permits to 
        drill received by the field office in the period covered by the 
        report; and
            ``(2) describes how each of the applications was disposed 
        of by the field office in accordance with subsection (p).''.

SEC. 2029. CLARIFICATION OF FAIR MARKET RENTAL VALUE DETERMINATIONS FOR 
              PUBLIC LAND AND FOREST SERVICE RIGHTS-OF-WAY.

    (a) Linear Rights-of-Way Under Federal Land Policy and Management 
Act of 1976.--Section 504 of the Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1764) is amended by adding at the end the following:
    ``(k) Determination of Fair Market Value of Linear Rights-of-Way.--
            ``(1) In general.--Effective beginning on the date of the 
        issuance of the rules required by paragraph (2), for purposes 
        of subsection (g), the Secretary concerned shall determine the 
        fair market value for the use of land encumbered by a linear 
        right-of-way granted, issued, or renewed under this title using 
        the valuation method described in paragraphs (2), (3), and (4).
            ``(2) Revisions.--Not later than 1 year after the date of 
        enactment of this subsection--
                    ``(A) the Secretary of the Interior shall amend 
                section 2803.1-2 of title 43, Code of Federal 
                Regulations, as in effect on the date of enactment of 
                this subsection, to revise the per acre rental fee zone 
                value schedule by State, county, and type of linear 
                right-of-way use to reflect current values of land in 
                each zone; and
                    ``(B) the Secretary of Agriculture shall make the 
                same revision for linear rights-of-way granted, issued, 
                or renewed under this title on National Forest System 
                land.
            ``(3) Updates.--The Secretary concerned shall annually 
        update the schedule revised under paragraph (2) by multiplying 
        the current year's rental per acre by the annual change, second 
        quarter to second quarter (June 30 to June 30) in the Gross 
        National Product Implicit Price Deflator Index published in the 
        Survey of Current Business of the Department of Commerce, 
        Bureau of Economic Analysis.
            ``(4) Review.--If the cumulative change in the index 
        referred to in paragraph (3) exceeds 30 percent, or the change 
        in the 3-year average of the 1-year Treasury interest rate used 
        to determine per acre rental fee zone values exceeds plus or 
        minus 50 percent, the Secretary concerned shall conduct a 
        review of the zones and rental per acre figures to determine 
        whether the value of Federal land has differed sufficiently 
        from the index referred to in paragraph (3) to warrant a 
        revision in the base zones and rental per acre figures. If, as 
        a result of the review, the Secretary concerned determines that 
        such a revision is warranted, the Secretary concerned shall 
        revise the base zones and rental per acre figures accordingly. 
        Any revision of base zones and rental per acre figure shall 
        only affect lease rental rates at inception or renewal.''.
    (b) Rights-of-Way Under Mineral Leasing Act.--Section 28(l) of the 
Mineral Leasing Act (30 U.S.C. 185(l)) is amended by inserting before 
the period at the end the following: ``using the valuation method 
described in section 2803.1-2 of title 43, Code of Federal Regulations, 
as revised in accordance with section 504(k) of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1764(k))''.

SEC. 2030. ENERGY FACILITY RIGHTS-OF-WAY AND CORRIDORS ON FEDERAL LAND.

    (a) Report to Congress.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Agriculture and the 
        Secretary of the Interior, in consultation with the Secretary 
        of Commerce, the Secretary of Defense, the Secretary of Energy, 
        and the Federal Energy Regulatory Commission, shall submit to 
        Congress a joint report--
                    (A) that addresses--
                            (i) the location of existing rights-of-way 
                        and designated and de facto corridors for oil, 
                        gas, and hydrogen pipelines and electric 
                        transmission and distribution facilities on 
                        Federal land; and
                            (ii) opportunities for additional oil, gas, 
                        and hydrogen pipeline and electric transmission 
                        capacity within those rights-of-way and 
                        corridors; and
                    (B) that includes a plan for making available, on 
                request, to the appropriate Federal, State, and local 
                agencies, tribal governments, and other persons 
                involved in the siting of oil, gas, and hydrogen 
                pipelines and electricity transmission facilities 
                Geographic Information System-based information 
                regarding the location of the existing rights-of-way 
                and corridors and any planned rights-of-way and 
                corridors.
            (2) Consultations and considerations.--In preparing the 
        report, the Secretary of the Interior and the Secretary of 
        Agriculture shall consult with--
                    (A) other agencies of Federal, State, tribal, or 
                local units of government, as appropriate;
                    (B) persons involved in the siting of oil, gas, and 
                hydrogen pipelines and electric transmission 
                facilities; and
                    (C) other interested members of the public.
            (3) Limitation.--The Secretary of the Interior and the 
        Secretary of Agriculture shall limit the distribution of the 
        report and Geographic Information System-based information 
        referred to in paragraph (1) as necessary for national and 
        infrastructure security reasons, if either Secretary determines 
        that the information may be withheld from public disclosure 
        under a national security or other exception under section 
        552(b) of title 5, United States Code.
    (b) Corridor Designations.--
            (1) 11 contiguous 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 consultation with the Federal Energy Regulatory 
        Commission and the affected utility industries, shall jointly--
                    (A) designate, under title V of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1761 et 
                seq.) and other applicable Federal laws, corridors for 
                oil, gas, and hydrogen pipelines and electricity 
                transmission and facilities on Federal land in the 
                eleven contiguous Western States (as defined in section 
                103 of the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1702));
                    (B) perform any environmental reviews that may be 
                required to complete the designations of corridors for 
                the facilities on Federal land in the eleven contiguous 
                Western States; and
                    (C) incorporate the designated corridors into--
                            (i) the relevant departmental and agency 
                        land use and resource management plans; or
                            (ii) equivalent plans.
            (2) Other states.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary of Agriculture, the 
        Secretary of Commerce, the Secretary of Defense, the Secretary 
        of Energy, and the Secretary of the Interior, in consultation 
        with the Federal Energy Regulatory Commission and the affected 
        utility industries, shall jointly--
                    (A) identify corridors for oil, gas, and hydrogen 
                pipelines and electricity transmission and distribution 
                facilities on Federal land in the States other than 
                those described in paragraph (1); and
                    (B) schedule prompt action to identify, designate, 
                and incorporate the corridors into the land use plan.
            (3) Ongoing responsibilities.--The Secretary of 
        Agriculture, the Secretary of Commerce, the Secretary of 
        Defense, the Secretary of Energy, and the Secretary of the 
        Interior, with respect to lands under their respective 
        jurisdictions, in consultation with the Federal Energy 
        Regulatory Commission and the affected utility industries, 
        shall establish procedures that--
                    (A) ensure that additional corridors for oil, gas, 
                and hydrogen pipelines and electricity transmission and 
                distribution facilities on Federal land are promptly 
                identified and designated; and
                    (B) expedite applications to construct or modify 
                oil, gas, and hydrogen pipelines and electricity 
                transmission and distribution facilities within the 
                corridors, taking into account prior analyses and 
                environmental reviews undertaken during the designation 
                of corridors.
    (c) 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.
    (d) Definition of Corridor.--
            (1) In general.--In this section and title V of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1761 et 
        seq.), the term ``corridor'' means--
                    (A) a linear strip of land--
                            (i) with a width determined with 
                        consideration given to technological, 
                        environmental, and topographical factors; and
                            (ii) that contains, or may in the future 
                        contain, 1 or more utility, communication, or 
                        transportation facilities;
                    (B) a land use designation that is established--
                            (i) by law;
                            (ii) by Secretarial Order;
                            (iii) through the land use planning 
                        process; or
                            (iv) by other management decision; and
                    (C) a designation made for the purpose of 
                establishing the preferred location of compatible 
                linear facilities and land uses.
            (2) Specifications of corridor.--On designation of a 
        corridor under this section, the centerline, width, and 
        compatible uses of a corridor shall be specified.

SEC. 2031. 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. 2032. ELECTRICITY TRANSMISSION LINE RIGHT-OF-WAY, CLEVELAND 
              NATIONAL FOREST AND ADJACENT PUBLIC LAND, CALIFORNIA.

    (a) Issuance.--
            (1) In general.--Not later than 60 days after the 
        completion of the environmental reviews under subsection (c), 
        the Secretary of the Interior and the Secretary of Agriculture 
        shall issue all necessary grants, easements, permits, plan 
        amendments, and other approvals to allow for the siting and 
        construction of a high-voltage electricity transmission line 
        right-of-way running approximately north to south through the 
        Trabuco Ranger District of the Cleveland National Forest in the 
        State of California and adjacent lands under the jurisdiction 
        of the Bureau of Land Management and the Forest Service.
            (2) Inclusions.--The right-of-way approvals under paragraph 
        (1) shall provide all necessary Federal authorization from the 
        Secretary of the Interior and the Secretary of Agriculture for 
        the routing, construction, operation, and maintenance of a 500-
        kilovolt transmission line capable of meeting the long-term 
        electricity transmission needs of the region between the 
        existing Valley-Serrano transmission line to the north and the 
        Telega-Escondido transmission line to the south, and for 
        connecting to future generating capacity that may be developed 
        in the region.
    (b) Protection of Wilderness Areas.--The Secretary of the Interior 
and the Secretary of Agriculture shall not allow any portion of a 
transmission line right-of-way corridor identified in subsection (a) to 
enter any identified wilderness area in existence as of the date of 
enactment of this Act.
    (c) Environmental and Administrative Reviews.--
            (1) Department of interior or local agency.--The Secretary 
        of the Interior, acting through the Director of the Bureau of 
        Land Management, shall be the lead Federal agency with overall 
        responsibility to ensure completion of required environmental 
        and other reviews of the approvals to be issued under 
        subsection (a).
            (2) National forest system land.--For the portions of the 
        corridor on National Forest System lands, the Secretary of 
        Agriculture shall complete all required environmental reviews 
        and administrative actions in coordination with the Secretary 
        of the Interior.
            (3) Expeditious completion.--The reviews required for 
        issuance of the approvals under subsection (a) shall be 
        completed not later than 1 year after the date of enactment of 
        this Act.
    (d) Other Terms and Conditions.--The transmission line right-of-way 
shall be subject to such terms and conditions as the Secretary of the 
Interior and the Secretary of Agriculture consider necessary, based on 
the environmental reviews under subsection (c), to protect the value of 
historic, cultural, and natural resources under the jurisdiction of the 
Secretary of the Interior or the Secretary of Agriculture.
    (e) Preference Among Proposals.--The Secretary of the Interior and 
the Secretary of Agriculture shall give a preference to any application 
or preapplication proposal for a transmission line right-of-way 
referred to in subsection (a) that was submitted before December 31, 
2002, over all other applications and proposals for the same or a 
similar right-of-way submitted on or after that date.

SEC. 2033. 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. 2034. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

    (a) Amendments.--Section 102 of Public Law 102-562 (106 Stat. 4234) 
is amended--
            (1) by striking ``(a) In General.--'';
            (2) by striking ``and subject to the reservation in 
        subsection (b),''; and
            (3) by striking subsection (b).
    (b) Implementation of Amendment.--The Secretary of the Interior 
shall execute the legal instruments necessary to effectuate the 
amendment made by subsection (a)(3).

                  Subtitle C--Naval Petroleum Reserves

SEC. 2041. 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 of Energy to the Secretary of the 
Interior for management, subject to subsection (c), in accordance with 
the general land laws.
    (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 2042 of this Act.
    (c) Purpose of Transfer.--Notwithstanding any other provision of 
law, the principle 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 only to prevent unnecessary 
degradation and to provide for ultimate economic recovery of the 
resources.
    (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. 2042. 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 167 acres located in the N\1/2\ of section 18, township 
32 south, range 24 east, Mount Diablo meridian, more fully described as 
Parcels 1 and 2 according to the Record of Survey filed on July 1, 
1974, in Book 11 of Record Surveys at page 68, County of Kern, State of 
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 one year after the 
date of the enactment of this Act, the Secretary of Energy 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. 2043. 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.

SEC. 2044. EFFECT OF TRANSFER AND CONVEYANCE.

    Nothing in this Act shall be construed----
            (1) to impose on the Secretary of Energy any new liability 
        or responsibility that the Secretary of Energy did not bear 
        before the date of the enactment of this Act; or
            (2) to increase the level of responsibility of the 
        Secretary of Energy with respect to any responsibility borne by 
        the Secretary of Energy before that date.

                  Subtitle D--Miscellaneous Provisions

SEC. 2051. 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. 2052. 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 
January 1, 2006, and ending on the date on which the Secretary of the 
Treasury publishes a certification under subsection (a)(4)(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. 2053. DOMESTIC OFFSHORE ENERGY REINVESTMENT.

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

``SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Coastal energy state.--The term `Coastal Energy 
        State' means a Coastal State off the coastline of which, within 
        the seaward lateral boundary as determined under section 4, 
        outer Continental Shelf bonus bids or royalties are generated.
            ``(2) Coastal political subdivision.--The term `coastal 
        political subdivision' means a county, parish, or other 
        equivalent subdivision of a Coastal Energy State, all or part 
        of which lies within the boundaries of the coastal zone of the 
        State, as identified in the State's approved coastal zone 
        management program under the Coastal Zone Management Act of 
        1972 (16 U.S.C. 1451 et seq.) on the date of the enactment of 
        this section.
            ``(3) Coastal population.--The term `coastal population' 
        means the population of a coastal political subdivision, as 
        determined by the most recent official data of the Census 
        Bureau.
            ``(4) Coastline.--The term `coastline' has the same meaning 
        as the term `coast line' in subsection 2(c) of the Submerged 
        Lands Act (43 U.S.C. 1301(c)).
            ``(5) Fund.--The term `Fund' means the Secure Energy 
        Reinvestment Fund established by this section.
            ``(6) Leased tract.--The term `leased tract' means a tract 
        maintained under section 6 or leased under section 8 for the 
        purpose of drilling for, developing, and producing oil and 
        natural gas resources.
            ``(7) Qualified outer continental shelf revenues.--The term 
        `qualified outer Continental Shelf revenues' means all amounts 
        received by the United States on or after October 1, 2005, from 
        each leased tract or portion of a leased tract lying seaward of 
        the zone defined and governed by section 8(g), or lying within 
        such zone but to which section 8(g) does not apply, including 
        bonus bids, rents, royalties (including payments for royalties 
        taken in kind and sold), net profit share payments, and related 
        interest.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
    ``(b) Secure Energy Reinvestment Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a separate account which shall be known as 
        the `Secure Energy Reinvestment Fund'. The Fund shall consist 
        of amounts deposited under paragraph (2).
            ``(2) Deposits.--For each of fiscal years 2006 through 
        2015, the Secretary of the Treasury shall deposit into the 
        Fund, subject to appropriations, the following:
                    ``(A) Notwithstanding section 9, all qualified 
                outer Continental Shelf revenues attributable to 
                royalties received by the United States in the fiscal 
                year that are in excess of the following amount:
                            ``(i) $7,000,000,000 in the case of 
                        royalties received in fiscal year 2006.
                            ``(ii) $7,100,000,000 in the case of 
                        royalties received in fiscal year 2007.
                            ``(iii) $7,300,000,000 in the case of 
                        royalties received in fiscal year 2008.
                            ``(iv) $6,900,000,000 in the case of 
                        royalties received in fiscal year 2009.
                            ``(v) $7,200,000,000 in the case of 
                        royalties received in fiscal year 2010.
                            ``(vi) $7,250,000,000 in the case of 
                        royalties received in fiscal year 2011.
                            ``(vii) $8,125,000,000 in the case of 
                        royalties received in fiscal year 2012.
                            ``(viii) $8,100,000,000 in the case of 
                        royalties received in fiscal year 2013.
                            ``(ix) $9,000,000,000 in the case of 
                        royalties received in fiscal year 2014.
                            ``(x) $7,500,000,000 in the case of 
                        royalties received in fiscal year 2015.
                    ``(B) Notwithstanding section 9, all qualified 
                outer Continental shelf revenues attributable to bonus 
                bids received by the United States in each of the 
                fiscal years 2006 through 2015 that are in excess of 
                $880,000,000.
                    ``(C) Notwithstanding section 9, in addition to 
                amounts deposited under subparagraphs (A) and (B), 
                $35,000,000 of amounts received by the United States 
                each fiscal year as royalties for oil or gas production 
                on the outer Continental Shelf.
                    ``(D) All interest earned under paragraph (4).
        In no event shall deposits under subparagraphs (A) through (C) 
        total more than $50,000,000 per fiscal year.
            ``(3) Deposits after fiscal year 2015.--For each fiscal 
        year after fiscal year 2015, the Secretary of the Treasury 
        shall deposit into the Fund the following:
                    ``(A) 25 percent of qualified outer Continental 
                Shelf revenues received by the United States in the 
                preceding fiscal year.
                    ``(B) All interest earned under paragraph (4).
            ``(4) Investment.--The Secretary of the Treasury shall 
        invest moneys in the Fund (including interest) in public debt 
        securities with maturities suitable to the needs of the Fund, 
        as determined by the Secretary of the Treasury, and bearing 
        interest at rates determined by the Secretary of the Treasury, 
        taking into consideration current market yields on outstanding 
        marketable obligations of the United States of comparable 
        maturity. Such invested moneys shall remain invested until 
        needed to meet requirements for disbursement under this 
        section.
    ``(c) Use of Secure Energy Reinvestment Fund.--
            ``(1) In general.--(A) The Secretary shall use amounts in 
        the Fund remaining after the application of subsection (d) to 
        pay to each Coastal Energy State, and to coastal political 
        subdivisions of such State, the amount allocated to the State 
        or coastal political subdivision, respectively, under this 
        subsection.
            ``(B) The Secretary shall make payments under this 
        paragraph in December of 2006, and of each year thereafter, 
        from revenues received by the United States in the preceding 
        fiscal year.
            ``(2) Allocation.--The Secretary shall allocate amounts 
        deposited into the Fund in a fiscal year, and other amounts 
        determined by the Secretary to be available, among Coastal 
        Energy States, and to coastal political subdivisions of such 
        States, as follows:
                    ``(A)(i) The allocation for each Coastal Energy 
                State shall be calculated based on the ratio of 
                qualified outer Continental Shelf revenues generated 
                off the coastline of the Coastal Energy State to the 
                qualified outer Continental Shelf revenues generated 
                off the coastlines of all Coastal Energy States for the 
                preceding fiscal year.
                    ``(ii) For purposes of this subparagraph, qualified 
                outer Continental Shelf revenues shall be considered to 
                be generated off the coastline of a Coastal Energy 
                State if the geographic center of the lease tract from 
                which the revenues are generated is located within the 
                area formed by the extension of the State's seaward 
                lateral boundaries.
                    ``(B) 35 percent of each Coastal Energy State's 
                allocable share as determined under subparagraph (A) 
                shall be allocated among and paid directly to the 
                coastal political subdivisions of the State by the 
                Secretary based on the following formula:
                            ``(i) 25 percent shall be allocated based 
                        on the ratio of each coastal political 
                        subdivision's coastal population to the coastal 
                        population of all coastal political 
                        subdivisions of the Coastal Energy State.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio of each coastal political 
                        subdivision's coastline miles to the coastline 
                        miles of all coastal political subdivisions of 
                        the State. In the case of a coastal political 
                        subdivision without a coastline, the coastline 
                        of the political subdivision for purposes of 
                        this clause shall be one-third the average 
                        length of the coastline of the other coastal 
                        political subdivisions of the State.
                            ``(iii) 50 percent shall be allocated based 
                        on a formula that allocates 75 percent of the 
                        funds based on such coastal political 
                        subdivision's relative distance from any leased 
                        tract used to calculate that State's allocation 
                        and 25 percent of the funds based on the 
                        relative level of outer Continental Shelf oil 
                        and gas activities in a coastal political 
                        subdivision to the level of outer Continental 
                        Shelf oil and gas activities in all coastal 
                        political subdivisions in such State, as 
                        determined by the Secretary.
    ``(d) Administrative Expenses.--Of amounts in the Fund each fiscal 
year, the Secretary may use up to one-half of one percent for the 
administrative costs of implementing this section.
    ``(e) Disposition of Funds.--A Coastal Energy State or coastal 
political subdivision may use funds provided to such entity under this 
section for any payment that is eligible to be made with funds provided 
to States under section 35 of the Mineral Leasing Act (30 U.S.C. 
191).''.

SEC. 2054. REPURCHASE OF LEASES THAT ARE NOT ALLOWED TO BE EXPLORED OR 
              DEVELOPED.

    (a) Authority to Repurchase and Cancel Certain Leases.--
Notwithstanding any other provisions of law, any Federal oil and gas, 
geothermal, coal, oil shale, or tar sands lease, whether onshore or 
offshore, issued by the Secretary, or units of such leases if unitized, 
that by operation of law, including but not limited to denial of a 
permit request, (1) is not allowed to be explored in the lawful manner 
requested by the lessee, or (2) if explored resulting in a commercial 
discovery is not allowed to be developed or produced in the lawful 
manner requested by the lessee, shall, upon the written request of the 
lessee and a finding by the Secretary that such lease qualifies, be 
authorized for repurchase and cancelled by the Secretary. If a permit, 
approval, or appeal has been expressly denied and the proposal of the 
lessee is found by the Secretary not to have been in compliance with 
law, the lessee shall not be entitled to have the lease repurchased and 
cancelled. However, if the lessee alleges that the Government has 
failed to act on a proposal of the lessee within the applicable period 
of time, the Secretary shall make no inquiry or determination as to 
whether the contents of the request complied with the law, and the 
Secretary shall restrict the Secretary's findings to whether or not the 
Government failed to act within the applicable period of time. The 
Secretary shall make all decisions under this section within 180 days 
of request. The area covered by any repurchased and cancelled lease 
shall remain available for future leasing unless otherwise prohibited 
by law. For purposes of this section, failure to act within a 
regulatory or statutory time-frame, whether advisory or mandatory, or 
if none, within a reasonable period of time not to exceed 180 days, on 
a permit request, administrative appeal, or other request for approval, 
shall be considered to meet the operation of law requirements of this 
section. Further, conditions of approval attached to permit approvals 
shall meet the operation of law requirement of this section if such 
conditions are not mandated by statute or regulation and not agreed to 
by the lessee. A lessee shall not be required to exhaust administrative 
remedies regarding a permit request, administrative appeal, or other 
required request for approval for the purposes of this section.
    (b) Determination of a Commercial Discovery.--The Secretary shall 
make any required determination of the existence of a commercial 
resource discovery. For oil and gas, a commercial discovery is a 
discovery in paying quantities. The Secretary shall be guided in such a 
determination by precedent, and by written advice, including input from 
the lessee.
    (c) Compensation.--Upon authorization by the Secretary of the 
repurchase of a lease under this section, a lessee shall be compensated 
in the amount of the total of lease acquisition costs, rentals, seismic 
acquisition costs, archeological and environmental studies, drilling 
costs, and other reasonable expenses on the lease, including expenses 
incurred in the repurchase process, to the extent that the lessee has 
not previously been compensated by the United States for such expenses. 
The lessee shall not be compensated for general overhead expenses, 
employee salaries, or interest. If the lessee is an assignee, the 
lessee may not claim the expenses of his assignor. Compensation shall 
be in the form of a check or electronic transfer from the Department of 
the Treasury from funds deposited into miscellaneous receipts under the 
authority of the same Act that authorized the issuance of the lease 
being repurchased. If the Secretary fails to make the repurchase 
authorization decision under subsection (a) within the required 180 
days and the lease is ultimately repurchased, the compensation due to 
the lessee shall increase by 25 percent, plus 1 percent for every seven 
days that the decision is delayed beyond the required 180 days.
    (d) Delegation of Authority and Finality of Decisions.--The 
Secretary may delegate authority granted by this section only to 
individuals who have been appointed by the President, by and with the 
advice and consent of the Senate. A decision under this section by the 
Secretary, or delegated official, shall be considered the final agency 
decision.
    (e) Regulations.--The Secretary shall issue reasonable regulations 
implementing this section not later than 1 year after date of enactment 
of this Act.
    (f) Secretary.--For purposes of this section, the term 
``Secretary'' means the Secretary of the Interior.
    (g) No Prejudice.--This section shall not be interpreted to 
prejudice any other rights that the lessee would have in the absence of 
this section.

                            TITLE XXI--COAL

SEC. 2101. SHORT TITLE.

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

SEC. 2102. LEASE MODIFICATIONS FOR CONTIGUOUS COAL LANDS OR COAL 
              DEPOSITS.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended in 
the first sentence by striking ``such lease,'' and all that follows 
through the end of the sentence and inserting ``such lease.''.

SEC. 2103. 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. 2104. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    (a) In General.--Section 7(b) of the Mineral Leasing Act (30 U.S.C. 
207(b)) is amended to read as follows:
    ``(b)(1) Each lease shall be subjected to the condition of diligent 
development and continued operation of the mine or mines, except where 
operations under the lease are interrupted by strikes, the elements, or 
casualties not attributable to the lessee.
    ``(2)(A) The Secretary of the Interior, upon determining that the 
public interest will be served thereby, may suspend the condition of 
continued operation upon the payment of advance royalties.
    ``(B) Such advance royalties shall be computed--
            ``(i) 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
            ``(ii) based on commercial quantities, as defined by 
        regulation by the Secretary of the Interior.
    ``(C) The aggregate number of years during the initial and any 
extended term of any lease for which advance royalties may be accepted 
in lieu of the condition of continued operation shall not exceed 20.
    ``(3) The amount of any production royalty paid for any year shall 
be reduced (but not below zero) by the amount of any advance royalties 
paid under such lease to the extent that such advance royalties have 
not been used to reduce production royalties for a prior year.
    ``(4) This subsection shall be applicable to any lease or logical 
mining unit in existence on the date of the enactment of this paragraph 
or issued or approved after such date.
    ``(5) Nothing in this subsection shall be construed to affect the 
requirement contained in the second sentence of subsection (a) relating 
to commencement of production at the end of 10 years.''.
    (b) Authority to Waive, Suspend, or Reduce Advance Royalties.--
Section 39 of the Mineral Leasing Act (30 U.S.C. 209) is amended by 
striking the last sentence.

SEC. 2105. 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. 2106. 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 for a 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. 2107. INVENTORY REQUIREMENT.

    (a) Review of Assessments.--
            (1) In general.--The Secretary of the Interior, in 
        consultation with the Secretary of Agriculture and the 
        Secretary of Energy, shall review coal assessments and other 
        available data to identify--
                    (A) public lands with coal resources;
                    (B) the extent and nature of any restrictions or 
                impediments to the development of coal resources on 
                public 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. 2108. APPLICATION OF AMENDMENTS.

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

SEC. 2109. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE 
              POWDER RIVER BASIN.

    The Secretary of the Interior shall--
            (1) undertake a review of existing authorities to resolve 
        conflicts between the development of Federal coal and the 
        development of Federal and non-Federal coalbed methane in the 
        Powder River Basin in Wyoming and Montana; and
            (2) not later than 6 months after the date of enactment of 
        this Act, report to Congress on alternatives to resolve these 
        conflicts and an identification of a preferred alternative with 
        specific legislative language, if any, required to implement 
        the preferred alternative.

            TITLE XXII--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

SEC. 2201. SHORT TITLE.

    This title may be cited as the ``Arctic Coastal Plain Domestic 
Energy Security Act of 2005''.

SEC. 2202. DEFINITIONS.

    In this title:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as such in the map entitled ``Arctic National 
        Wildlife Refuge'', dated August 1980, as referenced in section 
        1002(b) of the Alaska National Interest Lands Conservation Act 
        (16 U.S.C. 3142(b)(1)), comprising approximately 1,549,000 
        acres, and as described in appendix I to part 37 of title 50, 
        Code of Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 2203. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement, in accordance with this Act 
        and acting through the Director of the Bureau of Land 
        Management in consultation with the Director of the United 
        States Fish and Wildlife Service, a competitive oil and gas 
        leasing program under the Mineral Leasing Act (30 U.S.C. 181 et 
        seq.) that will result in an environmentally sound program for 
        the exploration, development, and production of the oil and gas 
        resources of the Coastal Plain; and
            (2) to administer the provisions of this title through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, and including, in furtherance 
        of this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this title in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Clerical amendment.--The table of contents in section 1 
        of such Act is amended by striking the item relating to section 
        1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966, the oil and gas 
        leasing program and activities authorized by this section in 
        the Coastal Plain are deemed to be compatible with the purposes 
        for which the Arctic National Wildlife Refuge was established, 
        and that no further findings or decisions are required to 
        implement this determination.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The ``Final 
        Legislative Environmental Impact Statement'' (April 1987) on 
        the Coastal Plain prepared pursuant to section 1002 of the 
        Alaska National Interest Lands Conservation Act (16 U.S.C. 
        3142) and section 102(2)(C) of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy 
        the requirements under the National Environmental Policy Act of 
        1969 that apply with respect to prelease activities, including 
        actions authorized to be taken by the Secretary to develop and 
        promulgate the regulations for the establishment of a leasing 
        program authorized by this title before the conduct of the 
        first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this title, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this title that are not referred to in 
        paragraph (2). Notwithstanding any other law, the Secretary is 
        not required to identify nonleasing alternative courses of 
        action or to analyze the environmental effects of such courses 
        of action. The Secretary shall only identify a preferred action 
        for such leasing and a single leasing alternative, and analyze 
        the environmental effects and potential mitigation measures for 
        those two alternatives. The identification of the preferred 
        action and related analysis for the first lease sale under this 
        title shall be completed within 18 months after the date of 
        enactment of this Act. The Secretary shall only consider public 
        comments that specifically address the Secretary's preferred 
        action and that are filed within 20 days after publication of 
        an environmental analysis. Notwithstanding any other law, 
        compliance with this paragraph is deemed to satisfy all 
        requirements for the analysis and consideration of the 
        environmental effects of proposed leasing under this title.
    (d) Relationship to State and Local Authority.--Nothing in this 
title shall be considered to expand or limit State and local regulatory 
authority.
    (e) Special Areas.--
            (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres 
        as depicted on the map referred to in section 2202(1).
            (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
            (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
            (4) Directional drilling.--Notwithstanding the other 
        provisions of this subsection, the Secretary may lease all or a 
        portion of a Special Area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the area.
    (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
title.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this title, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 2204. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this title to any 
person qualified to obtain a lease for deposits of oil and gas under 
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after such nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this title shall be 
by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this title, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) conduct the first lease sale under this title within 22 
        months after the date of the enactment of this Act; and
            (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 2205. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 2204 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
    (b) Subsequent Transfers.--No lease issued under this title may be 
sold, exchanged, assigned, sublet, or otherwise transferred except with 
the approval of the Secretary. Prior to any such approval the Secretary 
shall consult with, and give due consideration to the views of, the 
Attorney General.

SEC. 2206. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this title 
shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
            (3) require that the lessee of lands within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of lands within the Coastal Plain and any other Federal lands 
        that are adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the Coastal Plain by the lessee or 
        by any of the subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this title shall be, as nearly 
        as practicable, a condition capable of supporting the uses 
        which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, and the environment as 
        required pursuant to section 2203(a)(2);
            (7) provide that the lessee, its agents, and its 
        contractors use best efforts to provide a fair share, as 
        determined by the level of obligation previously agreed to in 
        the 1974 agreement implementing section 29 of the Federal 
        Agreement and Grant of Right of Way for the Operation of the 
        Trans-Alaska Pipeline, of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State;
            (8) prohibit the export of oil produced under the lease; 
        and
            (9) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this title and the regulations issued under this title.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this title and in recognizing the 
Government's proprietary interest in labor stability and in the ability 
of construction labor and management to meet the particular needs and 
conditions of projects to be developed under the leases issued pursuant 
to this title and the special concerns of the parties to such leases, 
shall require that the lessee and its agents and contractors negotiate 
to obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 2207. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard to Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 2203, administer the provisions of this title 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
            (1) ensure the oil and gas exploration, development, and 
        production activities on the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, their habitat, 
        and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum amount of surface acreage 
        covered by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
also require, with respect to any proposed drilling and related 
activities, that--
            (1) a site-specific analysis be made of the probable 
        effects, if any, that the drilling or related activities will 
        have on fish and wildlife, their habitat, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations to Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this title, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this title are conducted in a manner consistent with the purposes and 
environmental requirements of this title.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this title shall require compliance with all applicable 
provisions of Federal and State environmental law and shall also 
require the following:
            (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
            (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
            (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported, if necessary, by ice 
        roads, winter trails with adequate snow cover, ice pads, ice 
        airstrips, and air transport methods, except that such 
        exploration activities may occur at other times, if the 
        Secretary finds that such exploration will have no significant 
        adverse effect on the fish and wildlife, their habitat, and the 
        environment of the Coastal Plain.
            (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                    (A) minimize, to the maximum extent possible, 
                adverse effects upon the passage of migratory species 
                such as caribou; and
                    (B) minimize adverse effects upon the flow of 
                surface water by requiring the use of culverts, 
                bridges, and other structural devices.
            (5) Prohibitions on general public access and use on all 
        pipeline access and service roads.
            (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this title, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (1) The stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
            (2) The environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in Appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 2208. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this title or any 
        action of the Secretary under this title shall be filed in any 
        appropriate district court of the United States--
                    (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                    (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
            (2) Venue.--Any complaint seeking judicial review of an 
        action of the Secretary under this title may be filed only in 
        the United States Court of Appeals for the District of 
        Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        title, including the environmental analysis thereof, shall be 
        limited to whether the Secretary has complied with the terms of 
        this title and shall be based upon the administrative record of 
        that decision. The Secretary's identification of a preferred 
        course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this title 
        shall be presumed to be correct unless shown otherwise by clear 
        and convincing evidence to the contrary.
    (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 2209. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from oil and gas 
leasing and operations authorized under this title--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 2212(d) the balance shall 
        be deposited into the Treasury as miscellaneous receipts.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.
    (c) Use of Bonus Payments for Low-Income Home Energy Assistance.--
Amounts that are received by the United States as bonuses for leases 
under this title and deposited into the Treasury under subsection 
(a)(2) may be appropriated to the Secretary of the Health and Human 
Services, in addition to amounts otherwise available, to provide 
assistance under the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.).

SEC. 2210. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) Exemption.--Title XI of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3161 et seq.) shall not apply to the 
issuance by the Secretary under section 28 of the Mineral Leasing Act 
(30 U.S.C. 185) of rights-of-way and easements across the Coastal Plain 
for the transportation of oil and gas.
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement referred to in subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 2203(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 2211. CONVEYANCE.

    In order to maximize Federal revenues by removing clouds on title 
to lands and clarifying land ownership patterns within the Coastal 
Plain, the Secretary, notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), shall convey--
            (1) to the Kaktovik Inupiat Corporation the surface estate 
        of the lands described in paragraph 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under section 12 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1611) in accordance with the terms 
        and conditions of the Agreement between the Department of the 
        Interior, the United States Fish and Wildlife Service, the 
        Bureau of Land Management, and the Kaktovik Inupiat Corporation 
        effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 2212. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
              ASSISTANCE.

    (a) Financial Assistance Authorized.--
            (1) In general.--The Secretary may use amounts available 
        from the Coastal Plain Local Government Impact Aid Assistance 
        Fund established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        title.
            (2) Eligible entities.--The North Slope Borough, Kaktovik, 
        and other boroughs, municipal subdivisions, villages, and any 
        other community organized under Alaska State law shall be 
        eligible for financial assistance under this section.
    (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
            (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational and subsistence values;
            (2) implementing mitigation plans and maintaining 
        mitigation projects;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including firefighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the North 
        Slope Borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Resources of the 
                Senate and the Committee on Energy and Resources of the 
                Senate an annual report on the status of coordination 
                between developers and the communities affected by 
                development.
    (c) Application.--
            (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
            (2) North slope borough communities.--A community located 
        in the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist the North Slope Borough and other 
        communities eligible for assistance under this section in 
        developing and submitting applications for assistance under 
        this section.
    (d) Establishment of Fund.--
            (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
            (2) Use.--Amounts in the fund may be used only for 
        providing financial assistance under this section.
            (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties under on 
        leases and lease sales authorized under this title.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest bearing government 
        securities.
    (e) Authorization of Appropriations.--To provide financial 
assistance under this section there is authorized to be appropriated to 
the Secretary from the Coastal Plain Local Government Impact Aid 
Assistance Fund $5,000,000 for each fiscal year.

                  TITLE XXIII--SET AMERICA FREE (SAFE)

SEC. 2301. SHORT TITLE.

    This title may be cited as the ``Set America Free Act of 2005'' or 
the ``SAFE Act''.

SEC. 2302. FINDINGS.

    Congress finds the following:
            (1) The three contiguous North American countries of 
        Canada, Mexico, and the United States share many economic, 
        environmental, and security interests, including being among 
        each others' largest trading partners, similar interests in 
        clean air and clean water, concern about infiltration of 
        terrorists from nations that host terrorist organizations, and 
        interdependent economic systems.
            (2) North American energy self-sufficiency is consistent 
        with the shared interests of the three contiguous North 
        American countries and should be achieved through methods that 
        recognize and respect the sovereignty of each of the three 
        contiguous North American countries.
            (3) The Energy Information Administration (EIA), in its 
        April 2004 International Energy Outlook, projects that world 
        energy consumption will increase by 54 percent from 2001 to 
        2025 and that world oil consumption will rise from 77 million 
        barrels per day (Mmbbl/d) in 2001 to 121 Mmbbl/d in 2025.
            (4) In the same report, EIA projects that, without a change 
        in governmental policy, the United States oil consumption will 
        rise by 44.4 percent from 19.6 Mmbbl/d (7.15 billion barrels 
        per year (Bbbl/y)) in 2001 to 28.3 Mmbbl/d (10.33 Bbbl/y) in 
        2025, and that the oil consumption of the three contiguous 
        North American countries of Canada, Mexico, and the United 
        States (in this title referred to as the ``three contiguous 
        North American countries'') will rise by 47.2 percent from 23.5 
        Mmbbl/d (8.58 Bbbl/y) in 2001 (30.5 percent of world 
        consumption) to 34.6 Mmbbl/d (12.6 Bbbl/y) in 2025 (28.6 
        percent of world consumption).
            (5) EIA projects that, without a change in governmental 
        policy, oil production in the three contiguous North American 
        countries will rise by 18.8 percent from 15.4 Mmbbl/d (5.6 
        Bbbl/y) in 2001 (19.4 percent of world production) to 18.3 
        Mmbbl/d (6.7 Bbbl/y) in 2025 (14.5 percent of world 
        production).
            (6) EIA projects that, without a change in governmental 
        policy, the three contiguous North American countries contain 
        492.7 Bbbls of oil resources (16.8 percent of total world oil 
        resources) (not including unconventional oil resources such as 
        United States oil shale or the overwhelming majority of 
        Canadian oil sands) at the base case oil price, which 
        represents sufficient oil to fully supply the needs of the 
        three contiguous North American countries for 57.4 years based 
        on 2001 oil consumption and 39.1 years based on projected 2025 
        oil consumption, resulting in an average of approximately 48 
        years of full supply.
            (7) In the same report, EIA projects that, without a change 
        in governmental policy, the United States natural gas 
        consumption will rise by 38.9 percent from 22.6 trillion cubic 
        feet per year (Tcf/y) in 2001 to 31.4 Tcf/y in 2025, and that 
        the natural gas consumption of the three contiguous North 
        American countries will rise by 48.0 percent from 26.9 Tcf/y in 
        2001 (29.3 percent of world consumption) to 39.8 Tcf/y in 2025 
        (26.3 percent of world consumption).
            (8) EIA projects that, without a change in governmental 
        policy, natural gas production in the three contiguous North 
        American countries will rise by 21.7 percent from 27.6 Tcf/y in 
        2001 (30.3 percent of world production) to 33.6 Tcf/y in 2025 
        (22.3 percent of world production), not including Alaskan gas 
        through the natural gas pipeline, gas from gas hydrates, nor 
        expanded coal gasification. The United States Geological Survey 
        estimates that natural gas hydrate resources in-place total 
        169,000 Tcf in Alaska and its surrounding waters, and 
        approximately 150,000 Tcf off the lower-48 Atlantic, Pacific, 
        and Gulf of Mexico coastlines.
            (9) The terrorist attacks in the United States on September 
        11, 2001, and the subsequent expansion of terrorist 
        organizations in regions outside of North America in areas that 
        are major suppliers of oil, and potential suppliers of 
        liquified natural gas, to the United States have significantly 
        increased the national security and homeland security risks to 
        the United States of relying upon oil and natural gas supply 
        sources located outside of the three contiguous North American 
        countries. The United States imports 60 percent of our oil 
        supplies-the highest in history. After Canada and Mexico, the 
        largest oil suppliers to the United States are Saudi Arabia, 
        Venezuela, Nigeria, Iraq, and Algeria all of which suffer from 
        significant instability.
            (10) According to published scientific, technical, and 
        economic reports, the three contiguous North American countries 
        have the resource base and technical ability to increase 
        production of oil by at least 15 Mmbbl/d by 2025 and 20 Mmbbl/d 
        by 2030 even before increases in coal liquifaction, biofuels, 
        gas-to-liquids, and other methods of creating liquid 
        substitutes for crude oil and crude oil products.
            (11) This increase in North American oil production would 
        be derived from a variety of resources including, among 
        others--
                    (A) the United States oil shale resource base (2 
                trillion barrels of oil in place out of 2.6 trillion in 
                the world) believed to be capable of eventually 
                producing 10 Mmbbl/d for more than 100 years;
                    (B) the Canadian Alberta oil sands resource base 
                (1.7 trillion barrels of oil in place), also believed 
                to be capable of eventually producing 10 Mmbbl/d for 
                more than 100 years;
                    (C) the United States heavy oil resource base (80 
                billion barrels of oil in place);
                    (D) the remaining 400 billion barrels of 
                conventional oil in place in the United States of which 
                60 billion barrels are potentially producible with 
                advanced CO2 enhanced oil recovery technology;
                    (E) the United States oil sands resource base of 54 
                billion barrels of oil in place;
                    (F) the Arctic National Wildlife Refuge Coastal 
                Plain area (ANWR) with a mean technically recoverable 
                resource of more than 10 billion barrels of oil;
                    (G) the National Petroleum Reserve-Alaska (NPR-A) 
                with a mean technically recoverable resource of 9.3 
                billion barrels of oil;
                    (H) the 12-18 billion barrels of oil likely to be 
                producible in the Canadian Atlantic offshore;
                    (I) the extensive resources of the Canadian Arctic 
                onshore and offshore;
                    (J) the extensive resources in the Alaskan Arctic 
                offshore and the outer Continental Shelf offshore the 
                lower-48 United States;
                    (K) other extensive oil resources in Canada and the 
                United States; and
                    (L) the extensive oil resources of Mexico.
            (12) In addition to being the ``Saudi Arabia'' of oil shale 
        with at least 75 percent of the world's oil shale resource 
        base, the United States is also the ``Saudi Arabia'' of coal. 
        The EIA estimates that total economically recoverable reserves 
        of coal around the world are 1,083 billion short tons-enough to 
        last approximately 210 years at current consumption levels. EIA 
        estimates that the economically recoverable coal reserves of 
        the United States, at 25 percent of total world reserves, are 
        the largest in the world. Total United States coal resources 
        are vastly larger than the 270 billion short tons of 
        economically recoverable reserves, and with new technology much 
        more could economically be made available to supply our energy 
        needs. World consumption of coal in 2001 was 5.26 billion short 
        tons and is projected to grow to 7.57 billion short tons in 
        2025. 70 percent of the increased world consumption is 
        projected to be attributable to China and India. United States 
        consumption of coal in 2001 was 1.06 billion short tons and is 
        projected to grow to 1.57 billion short tons in 2025.
            (13) Growth in world oil consumption has been outstripping 
        growth in world production of conventional oil resources for 
        several primary reasons, including that conventional oil 
        production in most oil producing countries has peaked and is 
        now declining, and developing nations such as China and India 
        are greatly accelerating their consumption of crude oil.
            (14) The recent increases in world oil prices are caused by 
        the faster growth in demand over supply and this trend is 
        likely to continue because the remaining conventional oil is 
        more difficult and expensive to find and produce, and 
        frequently not reasonably available.
            (15) The National Intelligence Council, an advisor to the 
        Central Intelligence Agency, found in its report, ``Mapping the 
        Global Future,'' NIC 2004-13, December 2004, that ``Continued 
        limited access of the international oil companies to major 
        fields could restrain this investment necessary for supply to 
        meet demand, however, and many of the areas--the Caspian Sea, 
        Venezuela, West Africa, and South China Sea--that are being 
        counted on to provide increased output involve substantial 
        political or economic risk. Traditional suppliers in the Middle 
        East are also increasingly unstable. Thus sharper demand-driven 
        competition for resources, perhaps accompanied by a major 
        disruption of oil supplies, is among the key uncertainties. 
        China and India, which lack adequate domestic energy resources, 
        will have to ensure continued access to outside suppliers; 
        thus, the need for energy will be a major factor in shaping 
        their foreign and defense policies, including expanding naval 
        power''.
            (16) Because the price of crude oil is set on a world 
        market basis, the excess of world demand over supply will 
        continue to drive up oil prices to levels potentially several 
        times those of today unless all nations capable of producing 
        significant quantities of incremental oil respond by ensuring 
        such production is developed and available for consumption on 
        an expedited basis.
            (17) The eventual, long-term solution is to drastically 
        reduce the world's reliance on oil as the primary fuel for 
        transportation (40 percent of the United States consumption of 
        oil is to power light motor vehicles).
            (18) North America, while maximizing the production of oil, 
        must use the next 40 years as a transition period to a more 
        sustainable energy model.
            (19) The United States also has large renewable energy 
        resource potential including wind, geothermal, solar, biomass, 
        ocean thermal, waves and currents, and hydroelectric. The EIA's 
        July 2004 report, ``Renewable Energy Trends 2003'', found that 
        renewable energy provided 6 percent of the Nation's energy 
        supply in 2003. The largest renewable energy source was biomass 
        with 47 percent of the renewables total energy output, followed 
        closely by hydroelectric with 45 percent, then geothermal with 
        5 percent, wind with 2 percent, and solar with 1 percent. 
        Technology is rapidly advancing, positioning renewable energy 
        to provide an increasing share of our energy supply in the 
        residential, commercial, industrial, transportation, and 
        electric power sectors. The United States public lands and 
        waters comprise 2.25 billion acres, large portions of which may 
        be available to rapidly expand this clean and renewable 
        alternative to fossil energy resources. These lands should be 
        reviewed for their potential contribution to our Nation's 
        domestic energy security.
            (20) The United States has the strongest environmental 
        safeguards in the world, and our standards, science, and 
        technology have proven that the United States can produce 
        energy in an environmentally benign manner, particularly when 
        compared with the lesser environmental standards in most 
        foreign oil producing countries.
            (21) The 1999 Clinton Administration report, 
        ``Environmental Benefits of Advanced Oil and Gas Exploration 
        and Production Technology,'' highlights the technological 
        achievements of the United States oil and gas industry. The 
        report noted, ``public awareness of the significant and 
        impressive environmental benefits from new exploration and 
        production (E&P) technology advances remains limited . . .. We 
        believe it is important to tell this remarkable story of 
        environmental progress in E&P technology. Greater awareness of 
        the industry's achievements in environmental protection will 
        provide the context for effective policy, and for informed 
        decision making by both the private and public sectors.''.
            (22) Many Americans believe the myth that spills from oil 
        and natural gas exploration and production are the leading 
        cause of oil pollution in the oceans and the Nation's rivers 
        and streams. The reality is that, to the contrary, in 2002 the 
        National Academy of Sciences found that offshore oil and 
        natural gas exploration and production account for a total of 
        only 2 percent of the oil in the North American marine 
        environment; natural sources such as oil seeps account for 63 
        percent of such oil; industrial and municipal discharges, 
        including urban runoff, account for 22 percent of such oil; 
        atmospheric pollution accounts for 8 percent of such oil; 
        marine transportation accounts for 3 percent of such oil; and 
        recreational vessels account for 2 percent of such oil.
            (23) Various national security organizations and experts 
        have warned the United States of the escalating risks to our 
        national security of relying on transoceanic oil imports from 
        unstable regions of the world for a significant part of our oil 
        supplies, and they have urged the Nation to reduce its 
        dependence on oil.
            (24) Polls consistently have found that a majority of 
        individuals in the United States strongly support reducing our 
        reliance on foreign energy sources.
            (25) A recent report on ``Energy and National Security'' 
        issued by Sandia National Laboratories, SAND2003-3287, 
        September 2003, found that our national security is threatened 
        by our continued reliance on vast quantities of oil from 
        unstable foreign sources. The report found that supply 
        disruptions, caused by terrorists or otherwise, could 
        immediately remove many millions of barrels of oil per day from 
        the world supply, and noted that the EIA has estimated that for 
        every one million bbl/d of oil supply disrupted, world oil 
        prices might increase $3-$5 per barrel. Sandia found six 
        solution options, including--
                    (A) maintenance of strategic reserves;
                    (B) support of foreign government regimes likely to 
                maintain production;
                    (C) military deterrence, protection, or 
                intervention to secure production sources and 
                facilities;
                    (D) diversification of production sources;
                    (E) reduction of oil intensity through conservation 
                or through more efficient energy use; and
                    (F) development and deployment of alternatives to 
                oil (or gas).
        Sandia noted ``that none of these measures seems likely to 
        emerge from business-as-usual market processes. Thus 
        implementation of these measures will usually require public 
        policy decisions. In the case of the first three, they would be 
        foreign and military policy decisions; in the case of the 
        latter three, they would be legal, regulatory, or governmental 
        subsidy decisions.'' Sandia mentioned oil shale and tar sands 
        as potential diversified sources of oil supplies, and hydrogen, 
        coal, renewables, nuclear fission, and methane hydrates as 
        alternatives to oil.
            (26) President Clinton concluded, on February 16, 1995, 
        under section 232 of the Trade Expansion Act of 1962, that ``. 
        . . the nation's growing reliance on imports of crude oil and 
        refined petroleum products threaten the nation's security 
        because they increase U.S. vulnerability to oil supply 
        interruptions.''. In 1994 crude oil imports were 7.051 million 
        barrels per day. On March 24, 2000, President Clinton, upon 
        further review under section 232, found, ``I have reviewed and 
        approved the findings of your investigative report . . . that 
        imports of crude oil threaten to impair the national 
        security.''. Between the two statements by President Clinton, 
        United States crude oil imports increased 21.6 percent to 8.581 
        million barrels per day in 1999.
            (27) Economists have found that while OPEC is an important 
        source of oil price increases, the United States government is 
        also partly to blame because overly burdensome government 
        regulations on domestic energy exploration, production, and 
        sales have supported OPEC's monopoly power and restricted 
        competition from American energy companies, in addition to 
        making expansive highly prospective areas off-limits to leasing 
        and production.
            (28) In addition to jeopardizing our national and energy 
        security, importing the majority of our oil also injures our 
        economic security. The United States imported approximately 4.7 
        billion barrels of oil in 2004, of which 1.4 billion barrels 
        were from Canada and Mexico. Imported energy creates very few 
        jobs in the United States and makes only a very minor 
        contribution to our Gross Domestic Product (GDP). If we 
        substitute North American production for the remaining 3.3 
        billion barrels of imports per year, at $40 per barrel the new 
        production would sell for $132 billion. A widely used 
        commercial economics model projects that GDP would increase by 
        $336 billion, creating 1,667,160 jobs, each with an average 
        total annual compensation of $50,356. Further, such activity is 
        projected to generate approximately $22 billion in indirect 
        business taxes, including sales, excise, and severance taxes. 
        At a one-eighth royalty, total royalty payments to mineral 
        rights owners would approximate $16.5 billion per year. 
        Further, our imported energy represents more than 25 percent of 
        our international trade deficit. American production could 
        eliminate two-thirds of the 25 percent, strengthening our 
        economy.

SEC. 2303. PURPOSE.

    The purpose of this title 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. 2304. 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 title 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) 4 members shall be appointed from amongst 
                individuals independently determined by the President 
                to be qualified for appointment.
                    (B) 4 members shall be appointed from a list of 8 
                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) 4 members shall be appointed from a list of 8 
                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) 2 members shall be appointed from a list of 4 
                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) 2 members shall be appointed from a list of 4 
                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. 2305. NORTH AMERICAN ENERGY FREEDOM POLICY.

    Within 90 days after receiving and considering the report and 
recommendations of the Commission under section 2304, 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 XXV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION

SEC. 2501. SHORT TITLE.

    This title may be cited as the ``Grand Canyon Hydrogen-Powered 
Transportation Demonstration Act of 2005''.

SEC. 2502. DEFINITIONS.

    For purposes of this title, the term--
            (1) ``Departments'' means the Department of Energy jointly 
        with the Department of the Interior; and
            (2) ``Secretaries'' means the Secretary of Energy jointly 
        with the Secretary of the Interior.

SEC. 2503. FINDINGS.

    The Congress finds that--
            (1) there is a need for a research and development program 
        to support and foster the development, demonstration, and 
        deployment of emerging hydrogen-based transportation 
        technologies suitable for use in sensitive resource areas;
            (2) partnerships between the Department of Energy, the 
        Department of the Interior, Native American Tribes, and United 
        States industry to develop hydrogen-based energy technologies 
        can provide significant benefits to our Nation, including 
        enhancing our environmental stewardship, reducing our 
        dependence on foreign oil, increasing our energy security, as 
        well as creating jobs for United States workers and improving 
        the competitive position of the United States in the global 
        economy; and
            (3) when technologically and economically feasible, the 
        implementation of clean, silent or nearly silent, hydrogen-
        based transportation technologies would further resource 
        stewardship and experiential goals in sensitive resource areas 
        including units of the National Park System, such as Grand 
        Canyon National Park.

SEC. 2504. RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.

    (a) In General.--The Secretaries shall jointly establish and carry 
out a research and development program, in partnership with the private 
sector, relating to hydrogen-based transportation technologies suitable 
for operations in sensitive resource areas such as national parks. The 
Secretaries, in partnership with the private sector, shall conduct a 
demonstration of hydrogen-based public transportation technology at 
Grand Canyon National Park within three years after the date of 
enactment of this Act. At his discretion, the Secretary of Energy may 
choose to extend existing Department of Energy hydrogen-related vehicle 
research and development programs in order to meet the objectives and 
requirements of this title. The Secretaries shall provide preference to 
tribal entities in the establishment of the research and development 
program.
    (b) Objective.--The objective of the program shall be to research, 
develop, and demonstrate, in cooperation with affected and related 
industries, a hydrogen-based alternative public transportation system 
suitable for operations within Grand Canyon National Park, that meets 
the following standards:
            (1) Silent or near-silent operation.
            (2) Low, ultra low, or zero emission of pollutants.
            (3) Reliability.
            (4) Safe conveyance of passengers and operator.
    (c) Partnership.--In order to accomplish the objective set forth in 
subsection (b), the Secretaries shall establish a partnership among the 
Departments, manufacturers, other affected or related industries, 
Native American Tribes, and the National Park Service shuttle operators 
and tour operators authorized to provide services in Grand Canyon 
National Park.

SEC. 2505. REPORTS TO CONGRESS.

    One year after the date of enactment of this Act, and annually 
thereafter for the duration of the program, the Secretaries shall 
submit a report to the Committees on Appropriations, Resources, and 
Energy and Commerce of the House of Representatives and the Committees 
on Appropriations and Energy and Natural Resources of the Senate 
describing the ongoing activities of the Secretaries and the 
Departments relating to the program authorized under this title and, to 
the extent practicable, the activities planned for the coming fiscal 
year.

SEC. 2506. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretaries to carry 
out this title, in addition to any amounts made available for these or 
related purposes under other Acts, $400,000 per year for three 
consecutive fiscal years beginning with the full fiscal year following 
the date of enactment of this Act.

                   TITLE XXVI--ADDITIONAL PROVISIONS

SEC. 2601. LIMITATION ON REQUIRED REVIEW UNDER NEPA.

    (a) Limitation on Review.--Action by the Secretary of the Interior 
in managing the public lands with respect to any of the activities 
described in subsection (b) shall not be subject to review under 
section 102(2)(C) the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)), if the activity is conducted for the purpose of 
exploration or development of a domestic Federal energy source.
    (b) Activities Described.--The activities referred to in subsection 
(a) are the following:
            (1) Geophysical exploration that does not require road 
        building.
            (2) Individual surface disturbances of less than 5 acres.
            (3) Drilling an oil or gas well at a location or well pad 
        site at which drilling has occurred previously.
            (4) Drilling an oil or gas well within a developed field 
        for which an approved land use plan or any environmental 
        document prepared pursuant to the National Environmental Policy 
        Act of 1969 analyzed such drilling as a reasonably foreseeable 
        activity.
            (5) Disposal of water produced from an oil or gas well, if 
        the disposal is in compliance with a permit issued under the 
        Federal Water Pollution Control Act.
            (6) Placement of a pipeline in an approved right-of-way 
        corridor.
            (7) Maintenance of a minor activity, other than any 
        construction or major renovation of a building or facility.

SEC. 2602. 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.
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