[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Placed on Calendar Senate (PCS)]
Calendar No. 124
109th CONGRESS
1st Session
H. R. 6
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 26, 2005
Received
June 9, 2005
Read twice and placed on the calendar
_______________________________________________________________________
AN ACT
To ensure jobs for our future with secure, affordable, and reliable
energy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Policy Act
of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy Savings Performance Contracts.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 111. Daylight savings.
Sec. 112. Enhancing energy efficiency in management of Federal lands.
Subtitle B--Energy Assistance and State Programs
Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
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.
Sec. 137. Intermittent escalators.
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. Biobased products.
Sec. 207. Renewable energy security.
Sec. 208. Installation of photovoltaic system.
Sec. 209. Sugar cane ethanol pilot program.
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.
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. 332. Natural gas market reform.
Sec. 333. Natural gas market transparency.
Sec. 334. Oil, gas, and mineral industry workers.
Subtitle C--Access to Federal Land
Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 346. Compliance with Executive Order No. 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.
Sec. 713. Efficient hybrid and advanced diesel vehicles.
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. 743A. Diesel truck retrofit and fleet modernization program.
Sec. 744. Fuel cell school buses.
Subtitle D--Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by bicycling program.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.
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.
Sec. 775. Update testing procedures.
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.
Sec. 811. Hydrogen fuel cell buses.
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.
Sec. 968A. Western michigan demonstration project.
Sec. 968B. Western hemisphere energy cooperation.
Sec. 968C. Arctic engineering research center.
Sec. 968D. Barrow geophysical research facility.
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.
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.
Sec. 1452. National priority project designation.
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. Conversion assitance for cellulosic biomass, waste-derived
ethanol, approved renewable fuels.
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.
Sec. 1614. Consolidation of gasoline industry.
Sec. 1615. Study of fuel savings from information technology for
transportation.
Sec. 1616. Feasibility study of mustard seed biodiesel.
TITLE XVII--RENEWABLE ENERGY--RESOURCES
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--RESOURCES
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. Pilot project to improve Federal permit coordination.
Sec. 2027. Deadline for consideration of applications for permits.
Sec. 2028. Clarification of fair market rental value determinations for
public land and Forest Service rights-of-
way.
Sec. 2029. Energy facility rights-of-way and corridors on Federal land.
Sec. 2030. Consultation regarding energy rights-of-way on public land.
Sec. 2031. Electricity transmission line right-of-way, Cleveland
National Forest and adjacent public land,
California.
Sec. 2032. Sense of Congress regarding development of minerals under
Padre Island National Seashore.
Sec. 2033. 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.
Sec. 2055. Limitation on required review under NEPA.
TITLE XXI--COAL--RESOURCES
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 XXIV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION
Sec. 2401. Short title.
Sec. 2402. Definitions.
Sec. 2403. Findings.
Sec. 2404. Research, development, and demonstration program.
Sec. 2405. Reports to Congress.
Sec. 2406. Authorization of appropriations.
TITLE XXV--ADDITIONAL PROVISIONS
Sec. 2501. Limitation on rent and other charges with respect to wind
energy development projects on public
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)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)) 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 and report to the Office of
Management and Budget to ensure that the limits specified in this
subparagraph on the number of contracts and the payments made for the
contracts are not exceeded. No Federal agency shall enter into a
contract under this title unless the Office of Management and Budget
has approved such contract.''.
(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
(c).
(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) 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.
SEC. 112. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of the Congress that
Federal agencies should enhance the use of energy efficient
technologies in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent practicable, the
Secretary of the Interior, the Secretary of Commerce, and the Secretary
of Agriculture shall seek to incorporate energy efficient technologies
in public and administrative buildings associated with management of
the National Park System, National Wildlife Refuge System, National
Forest System, National Marine Sanctuaries System, and other public
lands and resources managed by the Secretaries.
(c) Energy Efficient Vehicles.--To the extent practicable, the
Secretary of the Interior, the Secretary of Commerce, and the Secretary
of Agriculture shall seek to use energy efficient motor vehicles,
including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System, National
Wildlife Refuge System, National Forest System, National Marine
Sanctuaries System, and other public lands and resources managed by the
Secretaries.
Subtitle B--Energy Assistance and State Programs
SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.
(a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is
amended by striking ``and $2,000,000,000 for each of fiscal years 2002
through 2004'' and inserting ``and $5,100,000,000 for each of fiscal
years 2005 through 2007''.
(b) Renewable Fuels.--The Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.) is amended by adding at the end the
following new section:
``renewable fuels
``Sec. 2612. In providing assistance pursuant to this title, a
State, or any other person with which the State makes arrangements to
carry out the purposes of this title, may purchase renewable fuels,
including biomass.''.
(c) Report to Congress.--The Secretary 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 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.''.
(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) 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 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.
Effective 3 years after the date of enactment of this Act, 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:
``(i) 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, but has not been
established; and
``(2) before the date on which such Federal standard is
established or revised.''.
SEC. 137. INTERMITTENT ESCALATORS.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended by adding at the end the following new
subsection:
``(e) Intermittent Escalators.--
``(1) Requirement.--Except as provided in paragraph (2),
any escalator acquired for installation in a Federal building
shall be an intermittent escalator.
``(2) Exception.--Paragraph (1) shall not apply at a
location outside the United States where the Federal agency
determines that to acquire an intermittent escalator would
require substantially greater cost to the Government over the
life of the escalator.
``(3) Additional energy conservation measures.--In addition
to complying with paragraph (1), Federal agencies shall
incorporate other escalator energy conservation measures, as
appropriate.
``(4) Definition.--For purposes of this subsection, the
term `intermittent escalator' means an escalator that remains
in a stationary position until it automatically operates at the
approach of a passenger, returning to a stationary position
after the passenger completes passage.''.
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 inserting ``, and, with
respect to rehabilitation and new construction of
public and assisted housing funded by HOPE VI
revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'' after ``90.1-
1989')'';
(2) in subsection (b)--
(A) by striking ``within 1 year after the date of
the enactment of the Energy Policy Act of 1992'' and
inserting ``by September 30, 2006''; and
(B) by inserting ``, and, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v), the 2003 International
Energy Conservation Code'' before the period at the
end; and
(3) in subsection (c)--
(A) in the heading, by inserting ``and the
International Energy Conservation Code'' after ``Model
Energy Code''; and
(B) by inserting ``, or, with respect to
rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v), the 2003 International
Energy Conservation Code'' after ``1989''.
SEC. 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.--Subchapter VI of chapter 31 of title 40, United
States Code, is amended by adding at the end the following:
``Sec. 3177. Use of photovoltaic energy in public buildings
``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Administrator of General Services
may establish a photovoltaic energy commercialization program
for the procurement and installation of photovoltaic solar
electric systems for electric production in new and existing
public buildings.
``(2) Purposes.--The purposes of the program shall be to
accomplish the following:
``(A) To accelerate the growth of a commercially
viable photovoltaic industry to make this energy system
available to the general public as an option which can
reduce the national consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption and
costs of the Federal Government.
``(C) To attain the goal of installing solar energy
systems in 20,000 Federal buildings by 2010, as
contained in the Federal Government's Million Solar
Roof Initiative of 1997.
``(D) To stimulate the general use within the
Federal Government of life-cycle costing and innovative
procurement methods.
``(E) To develop program performance data to
support policy decisions on future incentive programs
with respect to energy.
``(3) Acquisition of photovoltaic solar electric systems.--
``(A) In general.--The program shall provide for
the acquisition of photovoltaic solar electric systems
and associated storage capability for use in public
buildings.
``(B) Acquisition levels.--The acquisition of
photovoltaic electric systems shall be at a level
substantial enough to allow use of low-cost production
techniques with at least 150 megawatts (peak)
cumulative acquired during the 5 years of the program.
``(4) Administration.--The Administrator shall administer
the program and shall--
``(A) issue such rules and regulations as may be
appropriate to monitor and assess the performance and
operation of photovoltaic solar electric systems
installed pursuant to this subsection;
``(B) develop innovative procurement strategies for
the acquisition of such systems; and
``(C) transmit to Congress an annual report on the
results of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Administrator shall establish a
photovoltaic solar energy systems evaluation program to
evaluate such photovoltaic solar energy systems as are required
in public buildings.
``(2) Program requirement.--In evaluating photovoltaic
solar energy systems under the program, the Administrator shall
ensure that such systems reflect the most advanced technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization program.--There
are authorized to be appropriated to carry out subsection (a)
$50,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.
``(2) Photovoltaic systems evaluation program.--There are
authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.''.
(b) Conforming Amendment.--The table of sections for the National
Energy Conservation Policy Act is amended by inserting after the item
relating to section 569 the following:
``Sec. 570. Use of photovoltaic energy in public buildings.''.
SEC. 206. 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. 207. 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
SEC. 208. INSTALLATION OF PHOTOVOLTAIC SYSTEM.
There is authorized to be appropriated to the General Services
Administration to install a photovoltaic system, as set forth in the
Sun Wall Design Project, for the headquarters building of the
Department of Energy located at 1000 Independence Avenue Southwest in
the District of Columbia, commonly know as the Forrestal Building,
$20,000,000 for fiscal year 2006. Such sums shall remain available
until expended.
SEC. 209. SUGAR CANE ETHANOL PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Sugar Cane
Ethanol Pilot Program established by subsection (b).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--There is established within the Department of
Energy a program to be known as the ``Sugar Cane Ethanol Pilot
Program''.
(c) Project.--
(1) In general.--In carrying out the program, the Secretary
shall establish a pilot project that is--
(A) located in the State of Hawaii; and
(B) designed to study the creation of ethanol from
cane sugar.
(2) Requirements.--A pilot project described in paragraph
(1) shall--
(A) be limited to the production of ethanol in
Hawaii in a way similar to the existing program for the
processing of corn for ethanol to show that the process
can be applicable to cane sugar;
(B) include information on how the scale of
projection can be replicated once the sugar cane
industry has site located and constructed ethanol
production facilities; and
(C) not last more than 3 years.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $8,000,000, to remain available
until expended.
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''.
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. 332. NATURAL GAS MARKET REFORM.
(a) Clarification of Existing CFTC Authority.--
(1) False reporting.--Section 9(a)(2) of the Commodity
Exchange Act (7 U.S.C. 13(a)(2)) is amended by striking ``false
or misleading or knowingly inaccurate reports'' and inserting
``knowingly false or knowingly misleading or knowingly
inaccurate reports''.
(2) Commission administrative and civil authority.--Section
9 of the Commodity Exchange Act (7 U.S.C. 13) is amended by
redesignating subsection (f) as subsection (e), and adding:
``(f) Commission Administrative and Civil Authority.--The
Commission may bring administrative or civil actions as provided in
this Act against any person for a violation of any provision of this
section including, but not limited to, false reporting under subsection
(a)(2).''.
(3) Effect of amendments.--The amendments made by
paragraphs (1) and (2) restate, without substantive change,
existing burden of proof provisions and existing Commission
civil enforcement authority, respectively. These clarifying
changes do not alter any existing burden of proof or grant any
new statutory authority. The provisions of this section, as
restated herein, continue to apply to any action pending on or
commenced after the date of enactment of this Act for any act,
omission, or violation occurring before, on, or after, such
date of enactment.
(b) Fraud Authority.--Section 4b of the Commodity Exchange Act (7
U.S.C. 6b) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking subsection (a) and inserting the following:
``(a) It shall be unlawful--
``(1) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery or in interstate commerce, that is made, or
to be made, on or subject to the rules of a designated contract
market, for or on behalf of any other person; or
``(2) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or
transaction subject to section 5a(g) (1) and (2) of this Act,
that is made, or to be made, for or on behalf of, or with, any
other person, other than on or subject to the rules of a
designated contract market--
``(A) to cheat or defraud or attempt to cheat or
defraud such other person;
``(B) willfully to make or cause to be made to such
other person any false report or statement or willfully
to enter or cause to be entered for such other person
any false record;
``(C) willfully to deceive or attempt to deceive
such other person by any means whatsoever in regard to
any order or contract or the disposition or execution
of any order or contract, or in regard to any act of
agency performed, with respect to any order or contract
for or, in the case of subsection (a)(2), with such
other person; or
``(D)(i) to bucket an order if such order is either
represented by such person as an order to be executed,
or required to be executed, on or subject to the rules
of a designated contract market; or
``(ii) to fill an order by offset against the order
or orders of any other person, or willfully and
knowingly and without the prior consent of such other
person to become the buyer in respect to any selling
order of such other person, or become the seller in
respect to any buying order of such other person, if
such order is either represented by such person as an
order to be executed, or required to be executed, on or
subject to the rules of a designated contract market.
``(b) Subsection (a)(2) shall not obligate any person, in
connection with a transaction in a contract of sale of a commodity for
future delivery, or other agreement, contract or transaction subject to
section 5a(g) (1) and (2) of this Act, with another person, to disclose
to such other person nonpublic information that may be material to the
market price of such commodity or transaction, except as necessary to
make any statement made to such other person in connection with such
transaction, not misleading in any material respect.''.
(c) Jurisdiction of the CFTC.--The Natural Gas Act (15 U.S.C. 717
et seq.) is amended by adding at the end:
``SEC. 26. JURISDICTION.
``This Act shall not affect the exclusive jurisdiction of the
Commodity Futures Trading Commission with respect to accounts,
agreements, contracts, or transactions in commodities under the
Commodity Exchange Act (7 U.S.C. 1 et seq.). Any request for
information by the Commission to a designated contract market,
registered derivatives transaction execution facility, board of trade,
exchange, or market involving accounts, agreements, contracts, or
transactions in commodities (including natural gas, electricity, and
other energy commodities) within the exclusive jurisdiction of the
Commodity Futures Trading Commission shall be directed to the Commodity
Futures Trading Commission, which shall cooperate in responding to any
information request by the Commission.''.
(d) Increased Penalties.--Section 21 of the Natural Gas Act (15
U.S.C. 717t) is amended--
(1) in subsection (a)--
(A) by striking ``$5,000'' and inserting
``$1,000,000''; and
(B) by striking ``two years'' and inserting ``5
years''; and
(2) in subsection (b), by striking ``$500'' and inserting
``$50,000''.
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.''.
SEC. 334. OIL, GAS, AND MINERAL INDUSTRY WORKERS.
Congress recognizes that a critical component in meeting expanded
domestic oil and gas supplies is the availability of adequate numbers
of trained and skilled workers who can undertake the difficult,
complex, and often hazardous tasks to bring new supplies into
production. Years of volatility in oil and gas prices, and uncertainty
over Federal policy on access to resources, has created a severe
shortage of skilled workers for the oil and gas industry. To address
this shortage, the Secretary of Energy, in consultation with the
Secretary of Labor, shall evaluate both the short term and longer term
availability of skilled workers to meet the energy security
requirements of the United States, addressing the availability of
skilled labor at both entry level and at more senior levels in the oil,
gas, and mineral industries. Within twelve months of the date of
enactment of this Act, the Secretary of Energy, the Secretary of Labor,
and the Secretary of the Interior shall submit to Congress a report
with recommendations as appropriate to meet the future labor
requirements for the domestic extraction industries.
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 NO. 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 or equal to 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(a) of the USEC Privatization Act (42 U.S.C. 2297h-
8(a)) is amended by adding at the end the following new paragraph:
``(8) Continuity of Benefits.--To the extent appropriations are
provided in advance for this purpose or are otherwise available, not
later than 30 days after the date of enactment of this paragraph, the
Secretary shall implement such actions as are necessary to ensure that
any employee who--
``(A) is involved in providing infrastructure or
environmental remediation services at the Portsmouth, Ohio, or
the Paducah, Kentucky, Gaseous Diffusion Plant;
``(B) has been an employee of the Department of Energy's
predecessor management and integrating contractor (or its first
or second tier subcontractors), or of the Corporation, at the
Portsmouth, Ohio, or the Paducah, Kentucky, facility; and
``(C) was eligible as of April 1, 2005, to participate in
or transfer into the Multiple Employer Pension Plan or the
associated multiple employer retiree health care benefit plans,
as defined in those plans,
shall continue to be eligible to participate in or transfer into such
pension or health care benefit plans.''.
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(a)(4) and (o) 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) and (o);
``(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.
SEC. 713. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.
(a) Program.--The Administrator of the Environmental Protection
Agency shall establish a program to encourage domestic production and
sales of efficient hybrid and advanced diesel vehicles. The program
shall include grants to domestic automobile manufacturers to--
(1) encourage production of efficient hybrid and advanced
diesel vehicles; and
(2) provide consumer incentives, including discounts and
rebates, for the purchase of efficient hybrid and advanced
diesel vehicles.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator of the Environmental Protection
Agency for carrying out this section $300,000,000 for each of the
fiscal years 2006 through 2015.
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 30 geographically
dispersed project grants to State governments, local governments, or
metropolitan transportation authorities to carry out a project or
projects for the purposes described in subsection (b).
(b) Grant Purposes.--A grant under this section may be used for the
following purposes:
(1) The acquisition of alternative fueled vehicles or fuel
cell vehicles, including--
(A) passenger vehicles (including neighborhood
electric vehicles); and
(B) motorized 2-wheel bicycles or other vehicles
for use by law enforcement personnel or other State or
local government or metropolitan transportation
authority employees.
(2) The acquisition of alternative fueled vehicles, hybrid
vehicles, or fuel cell vehicles, including--
(A) buses used for public transportation or
transportation to and from schools;
(B) delivery vehicles for goods or services; and
(C) ground support vehicles at public airports
(including vehicles to carry baggage or push or pull
airplanes toward or away from terminal gates).
(3) The acquisition of ultra-low sulfur diesel vehicles.
(4) Installation or acquisition of infrastructure necessary
to directly support an alternative fueled vehicle, fuel cell
vehicle, or hybrid vehicle project funded by the grant,
including fueling and other support equipment.
(5) Operation and maintenance of vehicles, infrastructure,
and equipment acquired as part of a project funded by the
grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--The Secretary shall issue
requirements for applying for grants under the pilot
program.
(B) Minimum requirements.--At a minimum, the
Secretary shall require that an application for a
grant--
(i) be submitted by the head of a State or
local government or a metropolitan
transportation authority, or any combination
thereof, and a registered participant in the
Clean Cities Program of the Department 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 $15,000,000 in Federal assistance under the pilot program
to any applicant.
(2) Cost sharing.--The Secretary shall not provide more
than 50 percent of the cost, incurred during the period of the
grant, of any project under the pilot program.
(3) Maximum period of grants.--The Secretary shall not fund
any applicant under the pilot program for more than 5 years.
(4) Deployment and distribution.--The Secretary shall seek
to the maximum extent practicable to ensure a broad geographic
distribution of project sites.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Publication.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and elsewhere as
appropriate, a request for applications to undertake projects
under the pilot program. Applications shall be due not later
than 180 days after the date of publication of the notice.
(2) Selection.--Not later than 180 days after the date by
which applications for grants are due, the Secretary shall
select by competitive, peer reviewed proposal, all applications
for projects to be awarded a grant under the pilot program.
(g) 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. 743A. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.
(a) Establishment.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of Energy, shall
establish a program for awarding grants on a competitive basis to
public agencies and entities for fleet modernization programs including
installation of retrofit technologies for diesel trucks.
(b) Eligible Recipients.--A grant shall be awarded under this
section only to a State or local government or an agency or
instrumentality of a State or local government or of two or more State
or local governments who will allocate funds, with preference to ports
and other major hauling operations.
(c) Awards.--
(1) In general.--The Administrator shall seek, to the
maximum extent practicable, to ensure a broad geographic
distribution of grants under this section.
(2) Preferences.--In making awards of grants under this
section, the Administrator shall give preference to proposals
that--
(A) will achieve the greatest reductions in
emissions of nonmethane hydrocarbons, oxides of
nitrogen, and/or particulate matter per proposal or per
truck; or
(B) involve the use of Environmental Protection
Agency or California Air Resources Board verified
emissions control retrofit technology on diesel trucks
that operate solely on ultra-low sulfur diesel fuel
after September 2006.
(d) Conditions of Grant.--A grant shall be provided under this
section on the conditions that--
(1) trucks which are replacing scrapped trucks and on which
retrofit emissions-control technology are to be demonstrated--
(A) will operate on ultra-low sulfur diesel fuel
where such fuel is reasonably available or required for
sale by State or local law or regulation;
(B) were manufactured in model year 1998 and
before; and
(C) will be used for the transportation of cargo
goods especially in port areas or used in goods
movement and major hauling operations;
(2) grant funds will be used for the purchase of emission
control retrofit technology, including State taxes and contract
fees; and
(3) grant recipients will provide at least 5 percent of the
total cost of the retrofit, including the purchase of emission
control retrofit technology and all necessary labor for
installation of the retrofit, from any source other than this
section.
(e) Verification.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish in the Federal
Register procedures to--
(1) make grants pursuant to this section;
(2) verify that trucks powered by ultra-low sulfur diesel
fuel on which retrofit emissions-control technology are to be
demonstrated will operate on diesel fuel containing not more
than 15 parts per million of sulfur after September 2006; and
(3) verify that grants are administered in accordance with
this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator to carry out this section, to remain
available until expended the following sums:
(1) $20,000,000 for fiscal year 2005.
(2) $35,000,000 for fiscal year 2006.
(3) $45,000,000 for fiscal year 2007.
(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;
(2) ways to promote fuel conservation measures for aviation
to enhance fuel efficiency and reduce emissions; and
(3) opportunities to reduce air traffic inefficiencies that
increase fuel burn and emissions.
(b) Focus.--The study under subsection (a) shall focus on how air
traffic management inefficiencies, such as aircraft idling at airports,
result in unnecessary fuel burn and air emissions.
(c) Report.--Not later than 1 year after the date of the initiation
of the study under subsection (a), the Administrator of the Federal
Aviation Administration and the Administrator of the Environmental
Protection Agency shall jointly submit to the Committee on Energy and
Commerce and the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Environment and Public
Works and the Committee on Commerce, Science, and Transportation of the
Senate a report that--
(1) describes the results of the study; and
(2) includes any recommendations on ways in which
unnecessary fuel use and emissions affecting air quality may be
reduced--
(A) without adversely affecting safety and security
and increasing individual aircraft noise; and
(B) while taking into account all aircraft
emissions and the impact of those emissions on the
human health.
(d) Risk Assessments.--Any assessment of risk to human health and
the environment prepared by the Administrator of the Federal Aviation
Administration or the Administrator of the Environmental Protection
Agency to support the report in this section shall be based on sound
and objective scientific practices, shall consider the best available
science, and shall present the weight of the scientific evidence
concerning such risks.
SEC. 754. DIESEL FUELED VEHICLES.
(a) Definition of Tier 2 Emission Standards.--In this section, the
term ``tier 2 emission standards'' means the motor vehicle emission
standards that apply to passenger cars, light trucks, and larger
passenger vehicles manufactured after the 2003 model year, as issued on
February 10, 2000, by the Administrator of the Environmental Protection
Agency under sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521,
7545).
(b) Diesel Combustion and After-Treatment Technologies.--The
Secretary 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. 755. CONSERVE BY BICYCLING PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Conserve by
Bicycling Program established by subsection (b).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(b) Establishment.--There is established within the Department of
Transportation a program to be known as the ``Conserve by Bicycling
Program''.
(c) Projects.--
(1) In general.--In carrying out the program, the Secretary
shall establish not more than 10 pilot projects that are--
(A) dispersed geographically throughout the United
States; and
(B) designed to conserve energy resources by
encouraging the use of bicycles in place of motor
vehicles.
(2) Requirements.--A pilot project described in paragraph
(1) shall--
(A) use education and marketing to convert motor
vehicle trips to bicycle trips;
(B) document project results and energy savings (in
estimated units of energy conserved);
(C) facilitate partnerships among interested
parties in at least 2 of the fields of--
(i) transportation;
(ii) law enforcement;
(iii) education;
(iv) public health;
(v) environment; and
(vi) energy;
(D) maximize bicycle facility investments;
(E) demonstrate methods that may be used in other
regions of the United States; and
(F) facilitate the continuation of ongoing programs
that are sustained by local resources.
(3) Cost sharing.--At least 20 percent of the cost of each
pilot project described in paragraph (1) shall be provided from
State or local sources.
(d) Energy and Bicycling Research Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall enter into a
contract with the National Academy of Sciences for, and the
National Academy of Sciences shall conduct and submit to
Congress a report on, a study on the feasibility of converting
motor vehicle trips to bicycle trips.
(2) Components.--The study shall--
(A) document the results or progress of the pilot
projects under subsection (c);
(B) determine the type and duration of motor
vehicle trips that people in the United States may
feasibly make by bicycle, taking into consideration
factors such as--
(i) weather;
(ii) land use and traffic patterns;
(iii) the carrying capacity of bicycles;
and
(iv) bicycle infrastructure;
(C) determine any energy savings that would result
from the conversion of motor vehicle trips to bicycle
trips;
(D) include a cost-benefit analysis of bicycle
infrastructure investments; and
(E) include a description of any factors that would
encourage more motor vehicle trips to be replaced with
bicycle trips.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $6,200,000, to remain available
until expended, of which--
(1) $5,150,000 shall be used to carry out pilot projects
described in subsection (c);
(2) $300,000 shall be used by the Secretary to coordinate,
publicize, and disseminate the results of the program; and
(3) $750,000 shall be used to carry out subsection (d).
SEC. 756. REDUCTION OF ENGINE IDLING 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, or communications, and is capable of providing
verifiable and auditable evidence of use of those services, to
a heavy-duty vehicle and any occupants of the heavy-duty
vehicle with or without relying on components mounted onboard
the heavy-duty vehicle for delivery of those services.
(3) Auxiliary power unit.--The term ``auxiliary power
unit'' means an integrated system that--
(A) provides heat, air conditioning, engine
warming, or electricity to components on a heavy-duty
vehicle; and
(B) is certified by the Administrator under part 89
of title 40, Code of Federal Regulations (or any
successor regulation), as meeting applicable emission
standards.
(4) Heavy-duty vehicle.--The term ``heavy-duty vehicle''
means a vehicle that--
(A) has a gross vehicle weight rating greater than
8,500 pounds; and
(B) is powered by a diesel engine.
(5) Idle reduction technology.--The term ``idle reduction
technology'' means an advanced truck stop electrification
system, auxiliary power unit, or other 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) Energy conservation technology.--the term ``energy
conservation technology'' means any device, system of devices,
or equipment that improves the fuel economy of a heavy-duty
vehicle.
(7) 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 and energy conservation deployment
program.--
(A) Establishment.--
(i) In general.--Not later than 90 days
after the date of enactment of this Act, the
Administrator, in consultation with the
Secretary of Transportation shall, through the
Environmental Protection Agency's SmartWay
Transport Partnership, establish a program to
support deployment of idle reduction and energy
conservation technologies .
(ii) Priority.--The Administrator shall
give priority to the deployment of idle
reduction and energy conservation technologies
based on the costs and beneficial effects on
air quality and ability to lessen the emission
of criteria air pollutants.
(B) Funding.--
(i) Authorization of appropriations.--There
are authorized to be appropriated to the
Administrator to carry out subparagraph (A)
$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 400
pounds.
``(C) Proof.--On request by a regulatory agency or
law enforcement agency, the vehicle operator shall
provide proof (through demonstration or certification)
that--
``(i) the idle reduction technology is
fully functional at all times; and
``(ii) the 400-pound gross weight increase
is not used for any purpose other than the use
of idle reduction technology described in
subparagraph (A).''.
(d) Report.--Not later than 60 days after the date on which funds
are initially awarded under this section, and on an annual basis
thereafter, the Administrator shall submit to Congress a report
containing--
(1) an identification of the grant recipients, a
description of the projects to be funded and the amount of
funding provided; and
(2) an identification of all other applicants that
submitted applications under the program.
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.
(a) In General.--Not later that 180 days after the date of
enactment of this Act, the Secretary shall initiate a partnership with
diesel engine, diesel fuel injection system, and diesel vehicle
manufacturers and diesel and biodiesel fuel providers, to include
biodiesel testing in advanced diesel engine and fuel system technology.
(b) Scope.--The program shall provide for testing to determine the
impact of biodiesel from different sources on current and future
emission control technologies, with emphasis on--
(1) the impact of biodiesel on emissions warranty, in-use
liability, and antitampering provisions;
(2) the impact of long-term use of biodiesel on engine
operations;
(3) the options for optimizing these technologies for both
emissions and performance when switching between biodiesel and
diesel fuel; and
(4) the impact of using biodiesel in these fueling systems
and engines when used as a blend with 2006 Environmental
Protection Agency-mandated diesel fuel containing a maximum of
15-parts-per-million sulfur content.
(c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall provide an interim report to Congress on
the findings of the program, including a comprehensive analysis of
impacts from biodiesel on engine operation for both existing and
expected future diesel technologies, and recommendations for ensuring
optimal emissions reductions and engine performance with biodiesel.
(d) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of fiscal years 2006 through 2010 to
carry out this section.
(e) Definition.--For purposes of this section, the term
``biodiesel'' means a diesel fuel substitute produced from nonpetroleum
renewable resources that meets the registration requirements for fuels
and fuel additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets
the American Society for Testing and Materials D6751-02a Standard
Specification for Biodiesel Fuel (B100) Blend Stock for Distillate
Fuels.
SEC. 758. 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.
SEC. 775. UPDATE TESTING PROCEDURES.
The Administrator of the Environmental Protection Agency shall
update or revise the adjustment factors in sections 600.209-85 and
600.209-95, of the Code of Federal Regulations, CFR Part 600 (1995)
Fuel Economy Regulations for 1977 and Later Model Year Automobiles to
take into consideration higher speed limits, faster acceleration rates,
variations in temperature, use of air conditioning, shorter city test
cycle lengths, current reference fuels, and the use of other fuel
depleting features.
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.
SEC. 811. HYDROGEN FUEL CELL BUSES.
The Secretary of Energy, through the advanced vehicle technologies
program, in coordination with the Secretary of Transportation, shall
advance the development of fuel cell bus technologies by providing
funding for 4 demonstration sites that--
(1) have or will soon have hydrogen infrastructure for fuel
cell bus operation; and
(2) are operated by entities with experience in the
development of fuel cell bus technologies, to enable the
widespread utilization of fuel cell buses.
Such demonstrations shall address the reliability of fuel cell heavy-
duty vehicles, expense, infrastructure, containment, storage, safety,
training, and other issues.
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).
(h) Integrated Bioenergy Research and Development.--In addition to
amounts otherwise authorized by this section, there are authorized to
be appropriated to the Secretary for integrated bioenergy research and
development programs, projects, and activities, $49,000,000 for each of
the fiscal years 2005 through 2009. Activities funded under this
subsection shall be coordinated with ongoing related programs of other
Federal agencies, including the Plant Genome Program of the National
Science Foundation. Of the funds authorized under this subsection, at
least $5,000,000 for each fiscal year shall be for training and
education targeted to minority and social disadvantaged farmers and
ranchers.
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.
SEC. 968A. WESTERN MICHIGAN DEMONSTRATION PROJECT.
The Administrator of the Environmental Protection Agency, in
consultation with the State of Michigan and affected local officials,
shall conduct a demonstration project to address the effect of
transported ozone and ozone precursors in Southwestern Michigan. The
demonstration program shall address projected nonattainment areas in
Southwestern Michigan that include counties with design values for
ozone of less than .095 based on years 2000 to 2002 or the most current
3-year period of air quality data. The Administrator shall assess any
difficulties such areas may experience in meeting the 8 hour national
ambient air quality standard for ozone due to the effect of transported
ozone or ozone precursors into the areas. The Administrator shall work
with State and local officials to determine the extent of ozone and
ozone precursor transport, to assess alternatives to achieve compliance
with the 8 hour standard apart from local controls, and to determine
the timeframe in which such compliance could take place. The
Administrator shall complete this demonstration project no later than 2
years after the date of enactment of this section and shall not impose
any requirement or sanction that might otherwise apply during the
pendency of the demonstration project.
SEC. 968B. WESTERN HEMISPHERE ENERGY COOPERATION.
(a) Program.--The Secretary shall carry out a program to promote
cooperation on energy issues with Western Hemisphere countries.
(b) Activities.--Under the program, the Secretary shall fund
activities to work with Western Hemisphere countries to--
(1) assist the countries in formulating and adopting
changes in economic policies and other policies to--
(A) increase the production of energy supplies; and
(B) improve energy efficiency; and
(2) assist in the development and transfer of energy supply
and efficiency technologies that would have a beneficial impact
on world energy markets.
(c) University Participation.--To the extent practicable, the
Secretary shall carry out the program under this section with the
participation of universities so as to take advantage of the acceptance
of universities by Western Hemisphere countries as sources of unbiased
technical and policy expertise when assisting the Secretary in--
(1) evaluating new technologies;
(2) resolving technical issues;
(3) working with those countries in the development of new
policies; and
(4) training policymakers, particularly in the case of
universities that involve the participation of minority
students, such as Hispanic-serving institutions and
Historically Black Colleges and Universities.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $8,000,000 for fiscal year 2006;
(2) $10,000,000 for fiscal year 2007;
(3) $13,000,000 for fiscal year 2008;
(4) $16,000,000 for fiscal year 2009; and
(5) $19,000,000 for fiscal year 2010.
SEC. 968C. ARCTIC ENGINEERING RESEARCH CENTER.
(a) In General.--The Secretary of Energy (referred to in this
section as the ``Secretary'') in consultation with the Secretary of
Transportation and the United States Arctic Research Commission shall
provide annual grants to a university located adjacent to the Arctic
Energy Office of the Department of Energy, to establish and operate a
university research center to be headquartered in Fairbanks and to be
known as the ``Arctic Engineering Research Center'' (referred to in
this section as the ``Center'').
(b) Purpose.--The purpose of the Center shall be to conduct
research on, and develop improved methods of, construction and use of
materials to improve the overall performance of roads, bridges,
residential, commercial, and industrial structures, and other
infrastructure in the Arctic region, with an emphasis on developing--
(1) new construction techniques for roads, bridges, rail,
and related transportation infrastructure and residential,
commercial, and industrial infrastructure that are capable of
withstanding the Arctic environment and using limited energy
resources as efficiently as possible;
(2) technologies and procedures for increasing road,
bridge, rail, and related transportation infrastructure and
residential, commercial, and industrial infrastructure safety,
reliability, and integrity in the Arctic region;
(3) new materials and improving the performance and energy
efficiency of existing materials for the construction of roads,
bridges, rail, and related transportation infrastructure and
residential, commercial, and industrial infrastructure in the
Arctic region; and
(4) recommendations for new local, regional, and State
permitting and building codes to ensure transportation and
building safety and efficient energy use when constructing,
using, and occupying such infrastructure in the Arctic region.
(c) Objectives.--The Center shall carry out--
(1) basic and applied research in the subjects described in
subsection (b), the products of which shall be judged by peers
or other experts in the field to advance the body of knowledge
in road, bridge, rail, and infrastructure engineering in the
Arctic region; and
(2) an ongoing program of technology transfer that makes
research results available to potential users in a form that
can be implemented.
(d) Amount of Grant.--For each of fiscal years 2006 through 2011,
the Secretary shall provide a grant in the amount of $3,000,000 to the
institution specified in subsection (a) to carry out this section.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $3,000,000 for each of fiscal
years 2006 through 2011.
SEC. 968D. BARROW GEOPHYSICAL RESEARCH FACILITY.
(a) Establishment.--The Secretary of Commerce, in consultation with
the Secretaries of Energy and the Interior, the Director of the
National Science Foundation, and the Administrator of the Environmental
Protection Agency, shall establish a joint research facility in Barrow,
Alaska, to be known as the ``Barrow Geophysical Research Facility'', to
support scientific research activities in the Arctic.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretaries of Commerce, Energy, and the Interior,
the Director of the National Science Foundation, and the Administrator
of the Environmental Protection Agency for the planning, design,
construction, and support of the Barrow Geophysical Research Facility
$61,000,000.
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) Requirement of section 501(c)(3) status.--The Secretary
shall not select a consortium under this section unless such
consortium is an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from tax under
such section 501(a) of such Code.
(4) Schedule.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall solicit proposals
from eligible consortia to perform the duties in subsection
(c)(1), which shall be submitted not later than 180 days after
the date of enactment of this Act. The Secretary shall select
the program consortium not later than 270 days after such date
of enactment.
(5) Application.--Applicants shall submit a proposal
including such information as the Secretary may require. At a
minimum, each proposal shall--
(A) list all members of the consortium;
(B) fully describe the structure of the consortium,
including any provisions relating to intellectual
property; and
(C) describe how the applicant would carry out the
activities of the program consortium under this
section.
(6) Eligibility.--To be eligible to be selected as the
program consortium, an applicant must be an entity whose
members have collectively demonstrated capabilities and
experience in planning and managing research, development,
demonstration, and commercial application programs for ultra-
deepwater and unconventional natural gas or other petroleum
exploration or production.
(7) Focus areas for awards.--
(A) Ultra-deepwater resources.--Awards from
allocations under section 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''.
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 Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(14) Time-based metering and communications.--
``(A) Not later than 18 months after the date of
enactment of this paragraph, each electric utility
shall offer each of its customer classes, and provide
individual customers upon customer request, a time-
based rate schedule under which the rate charged by the
electric utility varies during different time periods
and reflects the variance, if any, in the utility's
costs of generating and purchasing electricity at the
wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and
cost through advanced metering and communications
technology.
``(B) The types of time-based rate schedules that
may be offered under the schedule referred to in
subparagraph (A) include, among others--
``(i) time-of-use pricing whereby
electricity prices are set for a specific time
period on an advance or forward basis,
typically not changing more often than twice a
year, based on the utility's cost of generating
and/or purchasing such electricity at the
wholesale level for the benefit of the
consumer. Prices paid for energy consumed
during these periods shall be pre-established
and known to consumers in advance of such
consumption, allowing them to vary their demand
and usage in response to such prices and manage
their energy costs by shifting usage to a lower
cost period or reducing their consumption
overall;
``(ii) critical peak pricing whereby time-
of-use prices are in effect except for certain
peak days, when prices may reflect the costs of
generating and/or purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption;
``(iii) real-time pricing whereby
electricity prices are set for a specific time
period on an advanced or forward basis,
reflecting the utility's cost of generating
and/or purchasing electricity at the wholesale
level, and may change as often as hourly; and
``(iv) credits for consumers with large
loads who enter into pre-established peak load
reduction agreements that reduce a utility's
planned capacity obligations.
``(C) Each electric utility subject to subparagraph
(A) shall provide each customer requesting a time-based
rate with a time-based meter capable of enabling the
utility and customer to offer and receive such rate,
respectively.
``(D) For purposes of implementing this paragraph,
any reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
``(E) In a State that permits third-party marketers
to sell electric energy to retail electric consumers,
such consumers shall be entitled to receive the same
time-based metering and communications device and
service as a retail electric consumer of the electric
utility.
``(F) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall, not
later than 18 months after the date of enactment of
this paragraph conduct an investigation in accordance
with section 115(i) and issue a decision whether it is
appropriate to implement the standards set out in
subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2625) is amended as follows:
(1) By inserting in subsection (b) after the phrase ``the
standard for time-of-day rates established by section
111(d)(3)'' the following: ``and the standard for time-based
metering and communications established by section
111(d)(14)''.
(2) By inserting in subsection (b) after the phrase ``are
likely to exceed the metering'' the following: ``and
communications''.
(3) By adding 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:
``(5)(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) 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 (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 sections 1269 (relating to effect on
other regulations), 1270 (relating to enforcement), 1271 (relating to
savings provisions), and 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 BOARDS ON ECONOMIC DISPATCH.
``(a) In General.--The Commission shall convene joint boards on a
regional basis pursuant to section 209 of this Act to study the issue
of security constrained economic dispatch for the various market
regions. The Commission shall designate the appropriate regions to be
covered by each such joint board for purposes of this section.
``(b) Membership.--The Commission shall request each State to
nominate a representative for the appropriate regional joint board, and
shall designate a member of the Commission to chair and participate as
a member of each such board.
``(c) Powers.--The sole authority of each joint board convened
under this section shall be to consider issues relevant to what
constitutes `security constrained economic dispatch' and how such a
mode of operating an electric energy system affects or enhances the
reliability and affordability of service to customers in the region
concerned and to make recommendations to the Commission regarding such
issues.
``(d) Report to the Congress.--Within one year after enactment of
this section, the Commission shall issue a report and submit such
report to the Congress regarding the recommendations of the joint
boards under this section and the Commission may consolidate the
recommendations of more than one such regional joint board, including
any consensus recommendations for statutory or regulatory reform.''.
TITLE XIII--ENERGY 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, after
April 1, 2003, 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, 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 identified under section 2(a)(1)(B) of the Edible
Oil Regulatory Reform Act (33 U.S.C. 2720(a)(1)(B)).
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.
SEC. 1452. NATIONAL PRIORITY PROJECT DESIGNATION.
(a) Definitions.--For purposes of this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(2) Department.--The term ``Department'' means the
Department of Energy.
(b) Designation of National Priority Projects.--
(1) In general.--There is hereby established the National
Priority Project designation, which shall be evidenced by a
medal bearing the inscription ``National Priority Project''.
The medal shall be of such design and materials and bear such
additional inscriptions as the President may prescribe.
(2) Making and presentation of designation.--
(A) In general.--The President, on the basis of
recommendations made by the Secretary, shall annually
designate organizations, if any, that have--
(i) advanced the field of renewable energy
technology and contribute to North American
energy independence; and
(ii) a project that has been certified by
the Secretary under subsection (c).
(B) Presentation.--The President shall designate
projects with such ceremonies as the President may
prescribe.
(C) Use of designation.--An organization that
receives a designation under this section may publicize
its designation as a National Priority Project in its
advertising.
(D) Categories in which the designation may be
given.--Separate designations shall be made to
qualifying projects in each of the following
categories:
(i) Renewable energy generation projects.
(ii) Energy efficient and renewable energy
building projects.
(c) Application and Certification.--
(1) Selection criteria.--Certification and selection of the
projects to receive the designation shall be based on the
following criteria:
(A) For all projects.--The project demonstrates
that it will install no less than 30 megawatts of
renewable energy generation capacity.
(B) For energy efficient building and renewable
energy projects.--In addition to meeting the criteria
established in subparagraph (A), building projects
shall--
(i) comply with nationally recognized
standards for high-performance, sustainable
buildings;
(ii) utilize whole-building integration of
energy efficiency and environmental performance
design and technology, including advanced
building controls;
(iii) utilize renewable energy for at least
50 percent of its energy consumption;
(iv) comply with applicable Energy Star
standards; and
(v) include at least 5,000,000 square feet
of enclosed space.
(2) Application.--
(A) Initial applications.--No later than 4 months
after the date of enactment of this Act, and annually
thereafter, the Secretary shall publish in the Federal
Register an invitation and guidelines for submitting
applications, consistent with the provisions of this
section.
(B) Contents.--The application shall describe the
project, or planned project, and its plans to meet the
criteria listed in paragraph (1).
(3) Certification.--Not later than 60 days after the
application period described in paragraph (2), the Secretary
shall certify projects that are reasonably expected to meet the
criteria described in paragraph (1).
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 commence after May 31, 2013, and shall be
completed no later than May 31, 2014.
(b) Presidential Determination.--After completion of the review
under subsection (a) and 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, on-
road and off-road diesel rules, the reformulated
gasoline program, the renewable content requirements
established by this subtitle, State programs regarding
gasoline volatility, and any other requirements imposed
by the Federal Government, States or localities
affecting the composition of motor fuel.
(b) Report.--
(1) In general.--Not later than December 31, 2009, 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. CONVERSION ASSITANCE FOR CELLULOSIC BIOMASS, WASTE-DERIVED
ETHANOL, APPROVED RENEWABLE FUELS.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(r) Conversion Assistance for Cellulosic Biomass, Waste-Derived
Ethanol, Approved Renewable Fuels.--
``(1) In general.--The Secretary of Energy may provide
grants to merchant producers of cellulosic biomass ethanol,
waste-derived ethanol, and approved renewable fules in the
United States to assist the producers in building eligible
production facilities described in paragraph (2) for the
production of ethanol or approved renewable fuels.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic or renewable biomass or
waste-derived feedstocks derived from agricultural
residues, wood residues, municipal solid waste, or
agricultural byproducts 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.
``(4) Definitions.--For the purposes of this subsection:
``(A) The term `approved renewable fuels' are fuels
and components of fuels that have been approved by the
Department of Energy, as defined in section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211)), which
have been made from renewable biomass.
``(B) The term `renewable biomass' is, as defined
in Presidential Executive Order 13134, published in the
Federal Register on August 16, 1999, any organic matter
that is available on a renewable or recurring basis
(excluding old-growth timber), including dedicated
energy crops and trees, agricultural food and feed crop
residues, acquatic plants, animal wastes, wood and wood
residues, paper and paper residues, and other
vegetative waste materials. Old-growth timber means
timber of a forest from the late successional stage of
forest development.''.
SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by
adding at the end the following:
``(s) Blending of Compliant Reformulated Gasolines.--
``(1) In general.--Notwithstanding subsections (h) and (k)
and subject to the limitations in paragraph (2) of this
subsection, it shall not be a violation of this subtitle for a
gasoline retailer, during any month of the year, to blend at a
retail location batches of ethanol-blended and non-ethanol-
blended reformulated gasoline, provided that--
``(A) each batch of gasoline to be blended has been
individually certified as in compliance with
subsections (h) and (k) prior to being blended;
``(B) the retailer notifies the Administrator prior
to such blending, and identifies the exact location of
the retail station and the specific tank in which such
blending will take place;
``(C) the retailer retains and, as requested by the
Administrator or the Administrator's designee, makes
available for inspection such certifications accounting
for all gasoline at the retail outlet; and
``(D) the retailer does not, between June 1 and
September 15 of each year, blend a batch of VOC-
controlled, or `summer', gasoline with a batch of non-
VOC-controlled, or `winter', gasoline (as these terms
are defined under subsections (h) and (k)).
``(2) Limitations.--
``(A) Frequency limitation.--A retailer shall only be
permitted to blend batches of compliant reformulated gasoline
under this subsection a maximum of two blending periods between
May 1 and September 15 of each calendar year.
``(B) Duration of blending period.--Each blending period
authorized under subparagraph (A) shall extend for a period of
no more than 10 consecutive calendar days.
``(3) Surveys.--A sample of gasoline taken from a retail
location that has blended gasoline within the past 30 days and
is in compliance with subparagraphs (A), (B), (C), and (D) of
paragraph (1) shall not be used in a VOC survey mandated by 40
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.
``(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 9003(i), 9004(f), and
9005(c) $100,000,000 for each of fiscal years 2005
through 2009; and
``(D) to carry out sections 9010, 9011, 9012, and
9013 $55,000,000 for each of fiscal years 2005 through
2009.''.
(b) Table of Contents.--The table of contents for such subtitle I
is amended by adding the following new item at the end thereof:
``Sec. 9014. Authorization of appropriations.''.
SEC. 1532. CONFORMING AMENDMENTS.
(a) In General.--Section 9001 of the Solid Waste Disposal Act (42
U.S.C. 6991) is amended as follows:
(1) By striking ``For the purposes of this subtitle--'' and
inserting ``In this subtitle:''.
(2) By redesignating paragraphs (1), (2), (3), (4), (5),
(6), (7), and (8) as paragraphs (10), (7), (4), (3), (8), (5),
(2), and (6), respectively.
(3) By inserting before paragraph (2) (as redesignated by
paragraph (2) of this subsection) the following:
``(1) Indian tribe.--
``(A) In general.--The term `Indian tribe' means
any Indian tribe, band, nation, or other organized
group or community that is recognized as being eligible
for special programs and services provided by the
United States to Indians because of their status as
Indians.
``(B) Inclusions.--The term `Indian tribe' includes
an Alaska Native village, as defined in or established
under the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.); and''.
(4) By inserting after paragraph (8) (as redesignated by
paragraph (2) of this subsection) the following:
``(9) Trust fund.--The term `Trust Fund' means the Leaking
Underground Storage Tank Trust Fund established by section 9508
of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--The Solid Waste Disposal Act (42 U.S.C.
6901 and following) is amended as follows:
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is amended--
(A) in paragraph (1), by striking ``9001(2)(B)''
and inserting ``9001(7)(B)''; and
(B) in paragraphs (2) and (3), by striking
``9001(2)(A)'' each place it appears and inserting
``9001(7)(A)''.
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended in
paragraphs (1), (2)(C), (7)(A), and (11) by striking ``Leaking
Underground Storage Tank Trust Fund'' each place it appears and
inserting ``Trust Fund''.
(3) Section 9009 (42 U.S.C. 6991h) is amended--
(A) in subsection (a), by striking ``9001(2)(B)''
and inserting ``9001(7)(B)''; and
(B) in subsection (d), by striking ``section
9001(1) (A) and (B)'' and inserting ``subparagraphs (A)
and (B) of section 9001(10)''.
SEC. 1533. TECHNICAL AMENDMENTS.
The Solid Waste Disposal Act is amended as follows:
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is amended by
striking ``sustances'' and inserting ``substances''.
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended
by striking ``subsection (c) and (d) of this section'' and
inserting ``subsections (c) and (d)''.
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by
striking ``in 9001(2) (A) or (B) or both'' and inserting ``in
subparagraph (A) or (B) of section 9001(7)''.
(4) Section 9005 (42 U.S.C. 6991d) is amended--
(A) in subsection (a), by striking ``study taking''
and inserting ``study, taking'';
(B) in subsection (b)(1), by striking ``relevent''
and inserting ``relevant''; and
(C) in subsection (b)(4), by striking
``Evironmental'' and inserting ``Environmental''.
Subtitle C--Boutique Fuels
SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.
(a) Temporary Waivers During Supply Emergencies.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended
by inserting ``(i)'' after ``(C)'' and by adding the following new
clauses at the end thereof:
``(ii) The Administrator may temporarily waive a control or
prohibition respecting the use of a fuel or fuel additive required or
regulated by the Administrator pursuant to subsection (c), (h), (i),
(k), or (m) of this section or prescribed in an applicable
implementation plan under section 110 approved by the Administrator
under clause (i) of this subparagraph if, after consultation with, and
concurrence by, the Secretary of Energy, the Administrator determines
that--
``(I) extreme and unusual fuel or fuel additive supply
circumstances exist in a State or region of the Nation which
prevent the distribution of an adequate supply of the fuel or
fuel additive to consumers;
``(II) such extreme and unusual fuel and fuel additive
supply circumstances are the result of a natural disaster, an
Act of God, a pipeline or refinery equipment failure, or
another event that could not reasonably have been foreseen or
prevented and not the lack of prudent planning on the part of
the suppliers of the fuel or fuel additive to such State or
region; and
``(III) it is in the public interest to grant the waiver
(for example, when a waiver is necessary to meet projected
temporary shortfalls in the supply of the fuel or fuel additive
in a State or region of the Nation which cannot otherwise be
compensated for).
``(iii) If the Administrator makes the determinations required
under clause (ii), such a temporary extreme and unusual fuel and fuel
additive supply circumstances waiver shall be permitted only if--
``(I) the waiver applies to the smallest geographic area
necessary to address the extreme and unusual fuel and fuel
additive supply circumstances;
``(II) the waiver is effective for a period of 20 calendar
days or, if the Administrator determines that a shorter waiver
period is adequate, for the shortest practicable time period
necessary to permit the correction of the extreme and unusual
fuel and fuel additive supply circumstances and to mitigate
impact on air quality;
``(III) the waiver permits a transitional period, the exact
duration of which shall be determined by the Administrator,
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, addresses air quality requirements, and
reduces motor fuel price volatility including that which has
resulted from the proliferation of boutique fuels, and to
recommend to Congress such legislative changes as are necessary
to implement such a system. The study should include the
impacts on overall energy supply, distribution, and use as a
result of the legislative changes recommended.
(3) Conduct of study.--In carrying out their joint duties
under this section, the Administrator and the Secretary shall
use sound science and objective science practices, shall
consider the best available science, shall use data collected
by accepted means and shall consider and include a description
of the weight of the scientific evidence. The Administrator and
the Secretary shall coordinate the study required by this
section with other studies required by the act and shall
endeavor to avoid duplication of effort with regard to such
studies.
(4) Responsibility of administrator.--In carrying out the
study required by this section, the Administrator shall
coordinate obtaining comments from affected parties interested
in the air quality impact assessment portion of the study.
(5) Responsibility of secretary.--In carrying out the study
required by this section, the Secretary shall coordinate
obtaining comments from affected parties interested in the fuel
availability, number of fuel blends, fuel fungibility and fuel
costs portion of the study.
(6) Report to congress.--The Administrator and the
Secretary jointly shall submit the results of the study
required by this section in a report to the Congress not later
than 12 months after the date of the enactment of this Act,
together with any recommended regulatory and legislative
changes. Such report shall be submitted to the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Environment and Public Works of the Senate.
(7) Authorization of appropriations.--There is authorized
to be appropriated jointly to the Administrator and the
Secretary $500,000 for the completion of the study required
under this subsection.
(d) Definitions.--In this section:
(1) The term ``Administrator'' means the Administrator of
the Environmental Protection Agency.
(2) The term ``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.
SEC. 1614. CONSOLIDATION OF GASOLINE INDUSTRY.
(a) In General.--The Comptroller General of the United States shall
conduct a study of the consolidation of the refiners, importers,
producers, and wholesalers of gasoline with the sellers of such
gasoline at retail. The study shall include an analysis of the impact
of such consolidation on--
(1) the retail price of gasoline,
(2) small business ownership,
(3) other corollary effects on the market economy of fuel
distribution,
(4) local communities, and
(5) other market impacts of such consolidation.
(b) Submission to Congress.--The Comptroller General shall submit
such study to the Congress not later than one year after the date of
the enactment of this Act.
SEC. 1615. STUDY OF FUEL SAVINGS FROM INFORMATION TECHNOLOGY FOR
TRANSPORTATION.
Not later than 2 years after the date of enactment of this Act, the
Secretary of Energy shall, in consultation with the Secretary of
Transportation, report to Congress on the potential fuel savings from
information technology systems that help businesses and consumers to
plan their travel and avoid delays. These systems may include web-based
real-time transit information systems, congestion information systems,
carpool information systems, parking information systems, freight route
management, and traffic management systems. The report shall include
analysis of fuel savings, analysis of system costs, assessment of
local, State, and regional differences in applicability, and evaluation
of case studies, best practices, and emerging technologies from both
the private and public sector.
SEC. 1616. FEASIBILITY STUDY OF MUSTARD SEED BIODIESEL.
(a) Study.--The Secretary of Energy shall enter into an arrangement
with the National Academy of Sciences for a study to determine the
feasibility of using of mustard seed as a feedstock for biodiesel.
(b) Contents.--The study shall include comparisons to other
biodiesel feedstocks using the following criteria:
(1) Economics from crop production to biodiesel in the
typical percentage blends.
(2) Adaptability to various geographic and agricultural
regions in the United States.
(3) Percentage and quality of oil content.
(4) Cetene ratings, viscosity ratings, emissions for the
typical percentage blends.
(5) Potential to enhance oil, pesticide and herbicide
qualities.
(6) Process technologies to convert into biodiesel.
(7) Usefulness of byproducts from the conversion process.
(8) Other criteria the National Academy of Sciences
considers pertinent.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the National Academy of Sciences shall transmit
results of the study to Congress, the Secretary of Energy, and the
Secretary of Agriculture, including any findings and recommendations.
TITLE XVII--RENEWABLE ENERGY --RESOURCES
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:
``SECTION 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--RESOURCES
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. 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. 2027. 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. 2028. 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. 2029. 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. 2030. 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. 2031. 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. 2032. 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. 2033. 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.
SEC. 2055. 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.
TITLE XXI--COAL--RESOURCES
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 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) Four members shall be appointed from amongst
individuals independently determined by the President
to be qualified for appointment.
(B) Four members shall be appointed from a list of
eight individuals who shall be nominated by the
majority leader of the Senate in consultation with the
chairman of the Committee on Energy and Natural
Resources of the Senate.
(C) Four members shall be appointed from a list of
eight individuals who shall be nominated by the Speaker
of the House of Representatives in consultation with
the chairmen of the Committees on Energy and Commerce
and Resources of the House of Representatives.
(D) Two members shall be appointed from a list of
four individuals who shall be nominated by the minority
leader of the Senate in consultation with the ranking
Member of the Committee on Energy and Natural Resources
of the Senate.
(E) Two members shall be appointed from a list of
four individuals who shall be nominated by the minority
leader of the House in consultation with the ranking
Members of the Committees on Energy and Commerce and
Resources of the House of Representatives.
(3) Chairman.--The chairman of the Commission shall be
selected by the President. The chairman of the Commission shall
be responsible for--
(A) the assignment of duties and responsibilities
among staff personnel and their continuing supervision;
and
(B) the use and expenditure of funds available to
the Commission.
(4) Vacancies.--Any vacancy on the Commission shall be
filled in the same manner as the original incumbent was
appointed.
(c) Resources.--In carrying out its functions under this section,
the Commission--
(1) is authorized to secure directly from any Federal
agency or department any information it deems necessary to
carry out its functions under this Act, and each such agency or
department is authorized to cooperate with the Commission and,
to the extent permitted by law, to furnish such information
(other than information described in section 552(b)(1)(A) of
title 5, United States Code) to the Commission, upon the
request of the Commission;
(2) may enter into contracts, subject to the availability
of appropriations for contracting, and employ such staff
experts and consultants as may be necessary to carry out the
duties of the Commission, as provided by section 3109 of title
5, United States Code; and
(3) shall establish a multidisciplinary science and
technical advisory panel of experts in the field of energy to
assist the Commission in preparing its report, including
ensuring that the scientific and technical information
considered by the Commission is based on the best scientific
and technical information available.
(d) Staffing.--The chairman of the Commission may, without regard
to the civil service laws and regulations, appoint and terminate an
executive director and such other additional personnel as may be
necessary for the Commission to perform its duties. The executive
director shall be compensated at a rate not to exceed the rate payable
for Level IV of the Executive Schedule under chapter 5136 of title 5,
United States Code. The chairman shall select staff from among
qualified citizens of Canada, Mexico, and the United States of America.
(e) Meetings.--
(1) Administration.--All meetings of the Commission shall
be open to the public, except that a meeting or any portion of
it may be closed to the public if it concerns matters or
information described in section 552b(c) of title 5, United
States Code. Interested persons shall be permitted to appear at
open meetings and present oral or written statements on the
subject matter of the meeting. The Commission may administer
oaths or affirmations to any person appearing before it.
(2) Notice; minutes; public availability of documents.--
(A) Notice.--All open meetings of the Commission
shall be preceded by timely public notice in the
Federal Register of the time, place, and subject of the
meeting.
(B) Minutes.--Minutes of each meeting shall be kept
and shall contain a record of the people present, a
description of the discussion that occurred, and copies
of all statements filed. Subject to section 552 of
title 5, United States Code, the minutes and records of
all meetings and other documents that were made
available to or prepared for the Commission shall be
available for public inspection and copying at a single
location in the offices of the Commission.
(3) Initial meeting.--The Commission shall hold its first
meeting within 30 days after all 16 members have been
appointed.
(f) Report.--Within 12 months after the effective date of this Act,
the Commission shall submit to Congress and the President a final
report of its findings and recommendations regarding North American
energy freedom.
(g) Administrative Procedure for Report and Review.--Chapter 5 and
chapter 7 of title 5, United States Code, do not apply to the
preparation, review, or submission of the report required by subsection
(f).
(h) Termination.--The Commission shall cease to exist 90 days after
the date on which it submits its final report.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this chapter a total of $10,000,000 for the 2
fiscal-year period beginning with fiscal year 2005, such sums to remain
available until expended.
SEC. 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 XXIV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION
SEC. 2401. SHORT TITLE.
This title may be cited as the ``Grand Canyon Hydrogen-Powered
Transportation Demonstration Act of 2005''.
SEC. 2402. 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. 2403. 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. 2404. 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. 2405. 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. 2406. 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 XXV--ADDITIONAL PROVISIONS
SEC. 2501. LIMITATION ON RENT AND OTHER CHARGES WITH RESPECT TO WIND
ENERGY DEVELOPMENT PROJECTS ON PUBLIC LANDS.
(a) In General.--The Secretary of the Interior may not impose rent
and other charges, excluding for the cost of processing rights-of-way,
with respect to any wind energy development project on public lands
that, in the aggregate, exceed 50 percent of the maximum amount of rent
that could be charged with respect to that project under the terms of
Bureau of Land Management Instruction Memorandum No. 2003-020, dated
October 16, 2002.
(b) Termination.--Subsection (a) shall not apply after the earlier
of--
(1) the date on which the Secretary of the Interior
determines there exists at least 10,000 megawatts of
electricity generating capacity from non-hydropower renewable
energy resources on public lands; or
(2) the end of the 10-year period beginning on the date of
the enactment of this Act.
(c) State Share not Affected.--This section shall not affect any
State share of rent and other charges with respect to any wind energy
development project on public lands.
Passed the House of Representatives April 21, 2005.
Attest:
JEFF TRANDAHL,
Clerk.
Calendar No. 124
109th CONGRESS
1st Session
H. R. 6
_______________________________________________________________________
AN ACT
To ensure jobs for our future with secure, affordable, and reliable
energy.
_______________________________________________________________________
June 9, 2005
Read twice and placed on the calendar