[Congressional Record Volume 147, Number 110 (Wednesday, August 1, 2001)]
[House]
[Pages H5008-H5122]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              SECURING AMERICA'S FUTURE ENERGY ACT OF 2001

  The SPEAKER pro tempore. Pursuant to House Resolution 216 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the bill, H.R. 4.

                              {time}  1235


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 4) to enhance energy conservation, research and development and 
to provide for security and diversity in the energy supply for the 
American people, and for other purposes, with Mr. Bonilla in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  The gentleman from Louisiana (Mr. Tauzin) and the gentleman from 
Michigan (Mr. Dingell) each will control 15 minutes.
  The gentleman from New York (Mr. Boehlert), the gentleman from Texas 
(Mr. Hall), the gentleman from California (Mr. Thomas), the gentlewoman 
from Florida (Mrs. Thurman), the gentleman from Utah (Mr. Hansen), and 
the gentleman from West Virginia (Mr. Rahall) each will control 10 
minutes.
  The Chair recognizes the gentleman from Louisiana (Mr. Tauzin).
  Mr. TAUZIN. Mr. Chairman, I yield myself such time as I may consume.
  Today we do something in this House we have not done in a decade. We 
enact a comprehensive energy policy for our country. After years of 
indifference toward America's energy future, we are about to take a 
giant leap forward.
  The bill we are considering today, the Securing America's Future 
Energy Act, the SAFE Act, will be the first major energy legislation of 
the 21st century, and it reflects 21st century values and ideas. It 
advances a balanced approach to energy production and use by 
encouraging a responsible, diverse mix of energy sources along with a 
significant investment in conservation and increased efficiency. The 
SAFE Act charts a path to increased energy security and a cleaner 
environment; secure, reliable, affordable energy for Americans.
  Americans last winter saw their natural gas heating bills rise in the 
Midwest 73 percent, saw the Northeast heating bills rise 27 percent, 
saw gasoline prices rise 40 and 50, in some cases 70 cents a gallon. 
Americans are pleased to know that today we begin a short-term and 
long-term permanent energy policy to correct those security 
deficiencies.
  I am proud of the bipartisan work our committee did. The core of the 
bill passed the Committee on Energy and Commerce. It passed 
subcommittee by a vote of 29 to 1 and the full committee by a vote of 
50 to 5. Big bipartisan support for the bulk of this bill.
  I owe a great deal of compliments and thanks to my subcommittee 
chairman, the gentleman from Texas (Mr. Barton), for helping to craft 
the legislation, and particularly to ranking members, the gentleman 
from Michigan (Mr. Dingell), and the subcommittee ranking member, the 
gentleman from Virginia (Mr. Boucher), for the extraordinary 
cooperation and assistance and hard work and the willingness to work 
together they exhibited.
  Today I hope this bipartisan spirit continues. This is not 
traditionally partisan legislation. This is about all Americans having 
affordable, reliable sources and supplies of energy, and all Americans 
believing enough in conservation and efficiency to play a role in 
making sure that our country is safe for the future.
  This bill does some amazing things in conservation. First of all, it 
does something we have not done literally in 17 years. It reduces light 
truck fuel consumption, the SUVs and minivans, by 5 billion gallons 
over the next 6 years. That is like parking 2 years' production of 
minivans and SUVs, for 2 years out of that 6-year period. This 
increases funding for programs to assist low-income families.
  I do not know if my colleagues realize it, but the number of families 
applying for LIHEAP help to pay their energy bills has been rising 
dramatically as the costs are going up, and

[[Page H5009]]

more and more families are having trouble meeting those costs.
  This bill will provide incentives for cleaner energy sources and 
alternatively fueled vehicles. This bill will promote clean coal 
technologies. Coal provides 52 percent of our electricity. We want to 
make it as clean as we can make it, not just for the sake of America's 
environment but for the global environment.
  This bill will set stricter standards on energy use in Federal 
buildings. We will make the Federal Government a leader by requiring by 
the year 2020 a 45 percent increase in efficiency in the use of energy 
in Federal buildings. And we will simplify and streamline the 
reauthorization, the relicensing of vital plants in the hydroelectric 
and nuclear area.
  This bill will stabilize energy for our country, stabilize supplies, 
stabilize prices, stabilize markets. This bill is the answer to what is 
becoming a growing crisis in supply and demand in America, and I am 
pleased to bring it to the House as the main core of this bill that has 
been produced with the cooperation of four different committees.
  I want to stress one thing more than anything else before I yield my 
time, and that is over half of our bill deals with conservation, 
efficiency, and alternative fuels. We lead with this effort because we 
believe logically Americans need first to control demand. We need to 
manage the demand of energy in this country first before we know how 
much more in supplies, how much more in deliverability we need to focus 
on in subsequent bills.
  Later on, we will charge the subcommittee on energy and clean air, 
led by the gentleman from Texas (Mr. Barton), to deliver on electricity 
and nuclear policy for this country. Today we build the broad policy, 
the permanent policy that stabilizes and protects America's energy 
future. I commend this bill to my colleagues' attention.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. The gentleman from Michigan (Mr. Dingell) is recognized 
for 15 minutes.
  Mr. DINGELL. Mr. Chairman, I yield myself 2 minutes.
  (Mr. DINGELL asked and was given permission to revise and extend his 
remarks.)
  Mr. DINGELL. Mr. Chairman, I rise to support those portions of H.R. 4 
reported by the Committee on Energy and Commerce. In that committee, we 
had a bipartisan process and a bipartisan vote for passage of 50 to 5.
  I want to specifically commend my good friend and colleague, the 
chairman of the committee, the gentleman from Louisiana (Mr. Tauzin), 
and the chairman of the subcommittee, the gentleman from Texas (Mr. 
Barton), for the way in which our committee addressed these issues. I 
also want to commend the distinguished ranking member, the gentleman 
from Virginia (Mr. Boucher), for his fine leadership and cooperation in 
this matter.
  It is regrettable that some other provisions from other committees 
have not met the same high standards of work and bipartisanship that 
were included in the efforts of the Committee on Energy and Commerce. 
The tight deadlines imposed by the leadership, when coupled with lack 
of specific statutory proposals by the administration, meant that it 
was much more difficult to accomplish this legislation and that our 
successes were more limited.
  Having said this, the Committee on Energy and Commerce has produced 
proposals well worthy of support in this body. Our bill provided for 
helpful conservation measures, balanced and targeted hydroelectric 
licensing reform, important protection of the nuclear waste fund, major 
incentives for the development and use of clean coal technology, and a 
needed analysis of the use of boutique fuels, a major problem.
  And as a result of the bipartisan amendment adopted in the 
subcommittee by a vote of 29 to 3, the legislation required significant 
but prudent savings for light trucks and SUVs. I note that this is a 
floor, leaving the Department of Transportation to determine if higher 
standards are needed, with the full ability to exercise these powers 
through proper and careful rulemaking.
  Virtually all of the committee's provisions in H.R. 4 are worthy of 
our support. I expect each Member will examine carefully other portions 
of this legislation, some of which are problematic, and see which 
amendments are to be adopted, if any, before rendering judgment on the 
entire matter.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TAUZIN. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas (Mr. Barton), the chairman of the Subcommittee on Energy and Air 
Quality of the Committee on Energy and Commerce.
  (Mr. BARTON of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. BARTON of Texas. Mr. Chairman, I wish to commend the full 
committee chairman, the gentleman from Louisiana (Mr. Tauzin); the full 
committee ranking member, the gentleman from Michigan (Mr. Dingell); 
and my ranking member, the gentleman from Virginia (Mr. Boucher). A 
fair amount of the bill before us came out of my subcommittee on a 
bipartisan basis. I believe that in subcommittee it passed 29 to 1, and 
in full committee, as amended, it passed 50 to 5.
  The bill before us is a balanced approach to our Nation's energy 
policy. On the supply side we have components of the bill that would 
address nuclear power in this country, the issue of boutique fuels, 
some hydroelectric licensing reforms, a significant title on clean coal 
technology, and obviously a major title on conservation.
  Bills that came out of other committees addressed the access issue, 
specifically the Alaska National Wildlife Reserve. The Committee on 
Ways and Means put together a tax provision. And I must say I am a 
little puzzled by some of the opposition to the tax title. Most of the 
tax extensions are just that, extensions of existing tax credits. To 
the extent they are new provisions in the tax title, they are for 
renewable and clean coal technology, which I think we have tremendous 
bipartisan support on.
  The bill that is before us is not the total answer to our Nation's 
energy policy. It is a good step in the right direction. I hope later 
in the fall to put together a comprehensive electricity restructuring 
bill that will come out of subcommittee and full committee and come to 
the floor on a bipartisan basis.
  We want to do something on the nuclear fuel cycle, including Price-
Anderson, the insurance fund. And once the President makes a decision 
on a repository for the high level nuclear waste, we want to put 
together a nuclear waste bill. We also want to reauthorize and improve 
and reform our pipeline safety bill.
  So the bill that is before us is simply a step in the right 
direction. This Congress has the opportunity, and I think the 
obligation, to be known as the energy Congress. We are going to start 
that today on a bipartisan basis. I urge Members to keep an open mind 
on the amendments, but on final passage I hope that we will vote in 
support of the bill.
  Mr. DINGELL. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Virginia (Mr. Boucher).
  (Mr. BOUCHER asked and was given permission to revise and extend his 
remarks.)

                              {time}  1245

  Mr. BOUCHER. Mr. Chairman, as ranking member on the Subcommittee on 
Energy and Air Quality of the Committee on Energy and Commerce, I have 
had the pleasure of participating actively with other subcommittee 
members and with the gentleman from Texas (Mr. Barton), the chairman of 
the subcommittee, the gentleman from Louisiana (Mr. Tauzin), chairman 
of the full committee, and the ranking member, the gentleman from 
Michigan (Mr. Dingell) in the construction of the Committee on Energy 
and Commerce titles in H.R. 4. It is my pleasure today to rise in 
support of the Committee on Energy and Commerce's provisions. They make 
a significant contribution to our Nation's energy policy.
  I want to commend the process that the Committee on Energy and 
Commerce employed in writing these titles. It was an open process. Both 
the gentleman from Texas (Mr. Barton) and the gentleman from Louisiana 
(Mr. Tauzin) welcomed the participation of Democratic members of the 
committee at every step, and I would note that the

[[Page H5010]]

 committee approved its titles by the broad bipartisan margin of 50-5.
  The Committee on Energy and Commerce usually works in a bipartisan 
fashion, and this legislation is very much in that tradition, and I 
want to extend my thanks to the gentleman from Texas (Mr. Barton) and 
the gentleman from Louisiana (Mr. Tauzin) for their cooperative work 
with us.
  The measure before us today does not address every energy-related 
concern. Some matters were not ripe for resolution given the rapid 
schedule set for completing work on H.R. 4. But this legislation does 
make a significant contribution to a strengthened national energy 
policy. It assures that the entire nuclear waste fund is expended for 
its intended purpose, the construction of a repository for the 
permanent storage of nuclear waste. While the Committee on Rules has 
removed that provision from this legislation, the provision in the 
original bill makes the important statement that this fund of ratepayer 
dollars should no longer be diverted to general government purposes.
  Another of our committee's titles makes major improvements in the 
process of relicensing hydroelectric facilities. Another provision 
embodies a carefully crafted bipartisan compromise on vehicle fuel 
efficiency standards, and the coal title will promote the introduction 
of a new generation of advanced clean coal technologies which electric 
utilities will be incented to use through a range of tax credits.
  While I have reservations about some titles in H.R. 4 that were added 
by other committees, I am pleased to commend the Committee on Energy 
and Commerce's work to the Members of this House and to urge support 
for these constructive contributions to a stronger national energy 
policy.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from Ohio 
(Mr. Oxley), the chairman of the Committee on Financial Services.
  Mr. OXLEY. Mr. Chairman, let me briefly explain the Committee on 
Financial Services' contribution to this legislation. Our committee has 
produced language which furthers an essential element of the 
President's energy plan, reducing energy consumption, and the idea is 
to get HUD to improve energy efficiency and conservation.
  This legislation will improve the community development block grants 
program to spur energy conservation, create incentives for energy-
efficient single- and multifamily homes, and aid Americans who purchase 
homes that are energy efficient.
  The Committee on Financial Services has worked hard to ensure that 
American families can live in cost-effective, energy-friendly homes 
that will both relieve the strain on their pocketbooks and the strain 
on our energy infrastructure.
  Mr. Chairman, H.R. 4 addresses the most critical elements of our 
energy difficulties. It promotes development of environmentally 
friendly technology through market competition and not through 
government mandates. It promotes the wise use of resources without 
threatening to cripple American businesses. H.R. 4 will lessen our 
dependence on foreign oil while at the same time leading to lower 
energy costs for all of us.
  Mr. Chairman, I congratulate all of my colleagues on the various 
committees who have worked on this historic legislation.
  Mr. DINGELL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Louisiana (Mr. John).
  Mr. JOHN. Mr. Chairman, I congratulate both the gentleman from 
Louisiana (Mr. Tauzin), chairman of the full committee, and the ranking 
member, the gentleman from Michigan (Mr. Dingell), and also the 
subcommittee chairman and ranking member, the gentleman from Texas (Mr. 
Barton) and the gentleman from Virginia (Mr. Boucher), for putting 
together what I think is one of the most important pieces of 
legislation that this Congress can handle this year.
  No economic prosperity can thrive and grow without an energy policy 
in place. I like to describe this situation that we have as Americans 
that when it deals with energy policy, we have attention deficit 
disorder. When oil was $10 a barrel and gasoline was 72 cents not very 
long ago, less than 2 years, energy was not on anyone's radar screen. 
But now when we have prices of oil that have risen to $30 a barrel, 
gasoline that reached $2, sometimes we make some hasty decisions.
  Mr. Chairman, I think that that in itself should underscore the 
importance of why we should finally implement a national energy policy. 
It is something I talked about for many, many years being from the 
great State of Louisiana, but it is troubling in the times of the peaks 
and the valleys.
  If we just look at USA Today, front page yesterday, it says, Energy 
Crisis: What Energy Crisis? Well, I can tell Members that my friends in 
the State of California and some of my friends in the Northeast will 
look at this a little differently. I believe if it is not a crisis 
today and we get lower prices in gasoline and natural gas, when is it 
going to be the next crisis? Next year, 2 years? But it is going to 
come, that is the history of this industry.
  Mr. Chairman, I think it is paramountly important to not just the 
jobs in my district, and that is something that is important and 
precious to me, but it is about national security. We must pass this 
energy policy. It is balanced, and I am very proud to be a cosponsor of 
it.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from Iowa 
(Mr. Ganske), a valuable member of the Committee on Energy and 
Commerce.
  (Mr. GANSKE asked and was given permission to revise and extend his 
remarks.)
  Mr. GANSKE. Mr. Chairman, number one, I think it would be unfortunate 
and misguided if we were to turn back the clock and grant an exemption 
from the oxygenate requirements of the Clean Air Act today. Such an 
amendment would inhibit the use of ethanol and decrease our use of 
renewable fuels.
  Number two, conservation is one of the first avenues we should 
examine in approaching our energy problems. I support efforts to 
increase the corporate average fuel economy standards.
  Number three, I believe we must have new sources of energy. Last 
winter, Iowans suffered when their natural gas heating bills spiked. We 
need to have new sources of natural gas. Therefore, I support 
provisions in this bill which anticipate drilling in ANWR. It should be 
done responsibly; and I will also support the Wilson amendments.
  Mr. Chairman, I speak in favor of a national energy plan for America. 
A comprehensive strategy has been decades overdue. I particularly 
commend those provisions which further our development of renewable 
fuels, such as the extension of the wind energy tax credit. I believe 
in the development of renewable fuels . . . such as biodiesel and 
ethanol. It would be unfortunate and misguided if we were to turn back 
the clock and grant an exemption from the oxygenate requirements of the 
Clean Air Act today. Such an amendment would actually inhibit the use 
ethanol and decrease our use renewable fuels. It would be a huge step 
backward, which would increase our dependence on foreign oil. I urge my 
colleagues to reject such an amendment.
  There are some advocates who believe energy conservation is not 
important to this debate. I strongly disagree. Conservation is one of 
the first avenues we should examine in approaching our energy problems. 
Therefore, it is my intention to support efforts today to increase the 
Corporate Average Fuel Economy Standards. I believe it is a responsible 
and appropriate step in increase our energy conservation efforts.
  There are others who argue that conservation efforts alone are not 
enough. I think they are also correct. I also believe we must have new 
sources of energy. Last winter lowans suffered when their natural gas 
heating bills spiked . . . we need to have new sources of natural gas. 
We could look on the coral reef off the coast of Florida, or under the 
Great Lakes, or under our national monuments . . . or we could depend 
on foreign sources to provide it to use . . . at whatever price they 
chose . . . but I don't believe those are the best options. Therefore, 
I support the provision in this bill which anticipates drilling in the 
ANWR. It should be done responsibly . . . and I support the Wilson 
amendments.
  Mr. DINGELL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Minnesota (Mr. Luther).
  Mr. LUTHER. Mr. Chairman, clearly, as in most bills that we have 
before us, there are some positive provisions. There are some positive 
provisions in this bill, but we should be very disappointed in the bill 
before the House today.
  Mr. Chairman, the administration has declared that there is an energy

[[Page H5011]]

crisis in America. If we are in a crisis, we need a far bolder approach 
than we are seeing today. This legislation is not an energy package for 
the 21st century. It focuses on the same old ideas that have led to 
many of our current problems. It is a plan for the previous century 
that perpetuates our reliance on dirty, inefficient energy sources 
while virtually ignoring the ideas of efficiency and renewable energy.
  Our country deserves a national energy strategy that promotes energy 
security by encouraging cleaner renewable sources and increasing energy 
efficiency. As members of the Committee on Energy and Commerce, many of 
us have fought for aggressive strategies such as increased air 
conditioner standards and standards for other appliances that account 
for a high percentage of energy use. It simply defies common sense not 
to make these appliances just as efficient as possible.
  By not even addressing this issue and many other issues, we are not 
even scratching the surface in terms of developing a comprehensive 
approach to our energy needs in this country.
  Congress needs to go back to the drawing board and develop a real 
policy that moves our country toward true energy independence for the 
future.
  Mr. TAUZIN. Mr. Chairman, I yield 30 seconds to myself to respond to 
the gentleman.
  Mr. Chairman, the bill does contain new rulemaking for appliance 
efficiency. In fact, it requires rulemaking stand-by power standards on 
a number of home appliances and other large appliances, and it does 
provide for all Federal agencies to buy a new 20 percent increase in 
efficiency air conditioner, the CR-12 standard, which was recommended 
not only by the Department of Justice, but by the DOE in the Clinton 
administration.
  So we have air conditioning efficiency standards, appliance 
standards, rulemaking for stand-by power to lower the energy use of 
many appliances. This is a comprehensive bill.
  Mr. Chairman, I yield 1 minute to the gentleman from Kentucky (Mr. 
Whitfield), another valuable member of the Committee on Energy and 
Commerce.
  Mr. WHITFIELD. Mr. Chairman, as a member of the Committee on Energy 
and Commerce, I was quite impressed with the way that the gentleman 
from Louisiana (Mr. Tauzin), the gentleman from Michigan (Mr. Dingell), 
the gentleman from Texas (Mr. Barton) and the gentleman from Virginia 
(Mr. Boucher) worked to put this bill together. It is an important 
piece of legislation because it sets out a national energy policy for 
America, something we have not had in a long time.
  It also pays some special attention to coal.
  Coal is our most abundant resource. We have 250 years of coal in the 
ground in America today. It provides 51 percent of all of the 
electricity produced in America, and it is one of the low-cost fuels 
which benefits the consumers throughout the country. Not only that, but 
it is one of the very few fuels that we do not have to import from 
other countries.
  Mr. Chairman, this bill is important because it authorizes $2 billion 
for research and development of clean coal technology. It provides tax 
credits for investment in clean coal technology, tax credits for 
production using clean coal technology, and I would urge everyone on 
this floor to support this legislation. I, for one, am particularly 
happy that it does place an emphasis on the importance of coal in 
America.

                              {time}  1300

  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Gekas).
  Mr. GEKAS. Mr. Chairman, I thank the gentleman for yielding me time.
  Mr. Chairman, I rise in support of the manager's amendment and the 
underlying bill. Is there anyone in the entire Nation who does not 
believe that the time has come for our Nation to declare independence, 
to declare independence on foreign oil, on foreign energy sources? 
Should we not be self-sufficient and independent in providing for the 
demands of our public, for the energy needs that are part of our 
everyday standard of living?
  That is what was the thrust of a bill that I introduced last term, to 
call for bringing about all the resources at our command, to focus on 
energy and to bring about independence of energy on foreign oil within 
10 years. We cannot do that unless we buckle down and begin the process 
of amassing those resources and focusing on these problems, starting 
with today's legislation. We should be ecstatic at the outset of this 
endeavor to recognize that whatever we do today is the giant first step 
towards that total independence that we all crave.
  Mr. TAUZIN. Mr. Chairman, I yield 3 minutes to the gentleman from the 
great State of Texas (Mr. DeLay), the majority whip, who makes almost 
as much of an energy contribution to America's future as does the great 
State of Louisiana.
  Mr. DeLAY. Mr. Chairman, I appreciate the kind words for Texas coming 
from the gentleman from Louisiana (Mr. Tauzin). I greatly appreciate 
it. It is probably the only time we have heard good words about Texas 
coming from Louisiana. We appreciate that very much, Mr. Chairman.
  I congratulate the chairman for bringing this bill to the floor and 
his participation in it.
  I ask the Members, Mr. Chairman, to support this bill because it 
makes substantial progress towards strengthening America's energy 
security.
  We find ourselves facing energy challenges that we simply cannot 
ignore any longer. Under the President and Vice President's leadership, 
the country has taken a hard look at both our short-term energy supply 
problems and the broader implications of long-term demands mandated by 
our expanding population and economy.
  I want to thank the chairmen of so many committees for doing 
outstanding jobs in putting together this very important package: the 
gentleman from New York (Mr. Boehlert) of the Committee on Science, the 
gentleman from Alaska (Mr. Young) of the Committee on Transportation 
and Infrastructure, the gentleman from California (Mr. Thomas) of the 
Committee on Ways and Means, the gentleman from Louisiana (Mr. Tauzin) 
of the Committee on Energy and Commerce. I also want to thank the 
ranking members, particularly the gentleman from Michigan (Mr. Dingell) 
from the Committee on Energy and Commerce.
  This is a very, very good package. This bill takes important steps to 
meet both those objectives that I was talking about. The SAFE Act, the 
Securing America's Future Energy Act, addresses our energy security 
with a thorough and comprehensive approach. It encourages conservation 
methods to enhance the dramatic improvements America has made over the 
past 20 years.
  Today we are much more efficient, a much more efficient society than 
we were only shortly ago. This bill will help us become even better, 
and it spurs progress by offering incentives that will put our 
ingenuity and technological prowess to work. We best meet a challenge 
in this country by identifying the problem and by liberating the 
American people to solve it with entrepreneurial know-how.
  New regulations and measures that deny choices to consumers are the 
wrong direction. This bill gets it right by offering incentives, not 
mandates.
  The SAFE Act targets a significant problem: our growing dependence on 
foreign sources of energy. America faces a serious degradation of our 
national security unless we move at once to reduce our dependence on 
foreign sources of energy.
  This bill takes important steps in that direction by promoting 
initiatives that will allow us to produce more energy at home. We need 
to take control of our own destiny, and this bill gives the American 
people much more control over their energy security.
  Members from both parties, I ask support for this bill.
  Mr. DINGELL. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Chairman, I appreciate the courtesy of the 
gentleman from Michigan (Mr. Dingell) in allowing me an opportunity to 
address this issue.
  I am concerned that a key component of any plan is to chart a course 
for the future. The energy plan we are debating today and voting on 
falls terribly short in preparing the United States for the future on a 
number of

[[Page H5012]]

issues: fiscal conservatism, environmental stewardship, and 
international relations.
  This bill costs $34 billion without any offsets to pay for it. Just 
like the general tax cut from President Bush which primarily benefits 
the people who need help the least and puts our economic future for the 
country in a precarious position, this energy bill puts Medicare and 
Social Security Trust Funds at further risk of being raided.
  We need to be focusing first and foremost on conservation and energy 
efficiency. With all due respect to the Vice President, energy 
conservation is more than a personal virtue. It should be the 
cornerstone of a long-term national energy policy. Nor does the bill 
that we are debating today provide adequate support for those families 
most in need to meet rising energy costs in the short term or provide 
incentives and funding for more long-term solutions such as investing 
in weatherization efforts, more energy-efficient appliances, and 
building design.
  For too many elderly and poor people, we are still asking them to 
choose between energy and food. With the hot spells we are looking at 
in the course of the summer, it could, in fact, be a life or death 
decision for some senior citizens.
  The energy bill is a direct assault on the environment by attempting 
to open up the Arctic Wildlife Refuge by drilling at a tremendous cost 
of 160 species of migratory birds, caribou, grizzlies, wolves and 
others that rely on the open space of the refuge.
  Finally, it is the slap in the face of our allies around the globe. 
Earlier this month in Bonn, the international community came to an 
agreement to address greenhouse gas emissions.
  I respect people who disagree, but this administration has been 
unable to formulate its own approach, leaving America out in the cold. 
America deserves a bill that balances economic and environmental 
considerations. I strongly urge a vote against this consideration.
  Mr. DINGELL. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from Utah (Mr. Matheson).
  Mr. MATHESON. I thank the gentleman from Michigan for yielding me 
this time.
  Mr. Chairman, I rise today to acknowledge the good work that took 
place on the committee that I am on. I recognize this is during the 
time of the Committee on Energy and Commerce, but I am on the Committee 
on Science. I just want to acknowledge that I think it fits well with 
this bill, a good bipartisan effort on that committee, an effort to 
focus a little bit more on the long-term objectives we are trying to do 
in this energy policy.
  In the long run I think technology is going to be a key component of 
how we address our energy situation, technology that finds better ways 
for us to make energy from existing sources, technology that finds ways 
to produce energy from new sources, and technology that helps us use 
energy more efficiently.
  I am particularly pleased in the research and development component. 
It incorporated a suggestion that I made to study ways to improve use 
of the electric transmission system to make it more efficient. However 
we want to produce energy, however we want to use energy, at the end if 
we can move it across those transmission lines on a more efficient 
basis, that helps us all.
  Mr. DINGELL. Mr. Chairman, I yield 1 minute to the gentleman from 
Colorado (Mr. Udall).
  (Mr. UDALL of Colorado asked and was given permission to revise and 
extend his remarks.)
  Mr. UDALL of Colorado. Mr. Chairman, I thank the distinguished 
ranking member for yielding time. I, too, like the previous speaker had 
scheduled to speak on behalf of the Committee on Science but want to 
take advantage of this opportunity.
  Mr. Chairman, I rise in opposition to this bill. As I look it over, I 
am reminded of the old Western movie ``The Good, the Bad and the 
Ugly.'' There are a few good things in the bill. For example, it 
includes the text of my three bills dealing with clean school buses, 
energy-efficient schools, and distributed energy. There are a few other 
good things as well, but the good things are far outweighed by the bad.
  The restrictive rule imposed by the leadership makes it impossible to 
remove or improve all those things that are bad for the environment, 
bad for taxpayers, bad for the economy and bad for the country. So even 
if the House adopts the amendments to protect the Arctic National 
Wildlife Refuge, as we should, the bill would still be so ugly that it 
should be rejected by the House.
  Let us reject this bill.
  Mr. TAUZIN. Mr. Chairman, I would ask the Chair, who has the right to 
close general debate.
  The CHAIRMAN. The gentleman from Louisiana has the right to close.
  Mr. DINGELL. Mr. Chairman, I yield 1 minute to the gentleman from 
Washington (Mr. Inslee).
  (Mr. INSLEE asked and was given permission to revise and extend his 
remarks.)
  Mr. INSLEE. Mr. Chairman, in the final analysis, this bill is less a 
real energy policy for the next century than it is a scandal. It is an 
environmental and fiscal Teapot Dome. It is the result of $33 million 
in campaign contributions by the oil and gas industry which has derived 
$21 billion in benefits from the Federal taxpayers. Where is that going 
to come from? It is going to come from the Medicare Trust Fund, because 
our friends across the aisle are refusing to hue to a policy of fiscal 
responsibility.
  It is also showing an amazing lack of vision. Forty years ago, 
President Kennedy stood right behind me and challenged Americans, said, 
this Nation is going to go to the Moon within the decade. President 
Bush's energy policy says, Let's not go anywhere. Let's rely on what we 
invented in the early 1900s, oil and gas. That is why 75 percent of all 
the fiscal benefits in this bill are for fossil fuels and only 17 
percent is for the new technology. It is a great energy policy for the 
last century.
  Mr. DINGELL. Mr. Chairman, I yield the balance of my time to the 
distinguished gentleman from Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Chairman, I thank my ranking member and good 
friend for allowing me to close on our side.
  I rise in support of H.R. 4 and want to commend the leaders on both 
sides, particularly in the Committee on Energy and Commerce that we 
worked on, what I consider a reasonable energy package. This 
legislation is long overdue and sorely needed because America has been 
wracked by unstable energy policies resulting from both internal and 
external pressures.
  The legislation before us today will help stabilize these prices 
through a combination of exploration and conservation. I am not 
standing here to pretend that we can drill our way out of our 
dependence on foreign oil, but we need to do better. However, by more 
utilization of our domestic energy sources, we can better absorb 
unexpected price shocks.
  In addition, the positive step this bill takes toward conservation 
will further stretch our energy supply. The bipartisan agreement in our 
committee between the gentleman from Michigan (Mr. Dingell) and the 
gentleman from Louisiana (Mr. Tauzin) has resulted in the first 
meaningful increase in the CAFE standard in over 2 decades.
  I understand this compromise may not go far enough for some folks, 
but it is an increase. I am concerned about American jobs. We need to 
make sure we have production, and exploration. I will have a discussion 
on this in later amendments.
  I am glad to support the bill and look forward to working with my 
colleagues.
  Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Ohio (Mr. Sawyer).
  (Mr. SAWYER asked and was given permission to revise and extend his 
remarks.)
  Mr. SAWYER. Mr. Chairman, I thank both the gentleman from Louisiana 
and the gentleman from Michigan for their courtesy.
  Mr. Chairman, the bill before us is a modest effort. It bears the 
earmarks of a rushed process. Energy policy is too important to the 
well-being of this country to be produced in impromptu committee 
sessions.
  I cannot emphasize strongly enough that no effort to solve this 
country's energy problems will be effective if we do not also tackle 
electricity issues. This bill almost entirely ignores the harder 
questions about electricity restructuring. It is bad enough that this 
bill turns its back on providing any help to the people of California. 
But it does nothing to demonstrate

[[Page H5013]]

to the American people that Congress is willing to take the steps 
necessary to provide the kind of Federal framework that will allow the 
developing electricity markets to work properly.
  How can we tell our constituents that we are solving America's energy 
problems if we do nothing about an electrical transmission system that 
was designed to meet the needs of America in the 1930's? Several of us 
will shortly be introducing legislation that will provide for a 
transmission system appropriate to our new century.
  Let us strive to achieve a truly comprehensive and effective solution 
to our energy problems. That solution is not before us today. Let us 
commit ourselves to the hard and deliberative work of addressing 
electrical transmission and generation.

                              {time}  1315

  Mr. TAUZIN. Mr. Chairman, I yield myself such time as I may consume 
in closing on our Committee on Energy and Commerce time on this bill.
  Mr. Chairman, much has been said in the last 30 minutes about this 
bill, some of it critical. I want to make a point here that I hope all 
Members will pay some attention to: this bill does not do everything 
that this Congress needs to do.
  We are going to take up an electricity bill in the fall, we are going 
to take up a nuclear policy bill in the fall, we will hopefully renew 
Price-Anderson. We are going to do a number of other things in the fall 
which may carry forward some of our conservation efforts in this bill. 
But this bill is a giant step forward to securing America's energy 
future. I want to focus on two parts of it that I hope Americans will 
really appreciate.
  The first is this awful problem that boutique fuels have caused in 
our gasoline markets. To all Americans who found themselves, 
particularly in Chicago and Milwaukee a few years ago, paying 
incredible prices for gasoline because there was such a shortage, look 
to the boutique fuel market for your enemy.
  The boutique fuel market, designed to help clean air, unfortunately 
ended up with over 50 different formulations of fuel. It is a 
dysfunctional market that has raised the price in the Midwest from 30 
to 35 cents a gallon. This bill begins to straighten out that 
dysfunction and sets in place a method to lower the numbers of those 
reformulations of gasoline, still keeping strict abidance with the 
clean air requirements of our great Nation.
  Secondly, I want to focus on the CAFE standards in this bill. The 
CAFE standards to be adopted in this bill will require for the first 
time in 17 years SUVs and minivans to begin saving fuel the way we 
require it to be saved in the car fleets of America. Today the SUVs and 
minivans consume about 2.4 billion gallons of gasoline a year.
  This bill will require a savings of 5 billion gallons over the next 6 
years. That is the equivalent of parking two production years of all 
the SUVs and minivans that we produce on our highways in America, 
parking them for 2 years out of that 6. That is a significant floor 
upon which NHTSA will build its new CAFE requirements.
  This is only a floor. This is the minimum NHTSA must do, our National 
Highway Traffic Safety Administration. They can and should do more. We 
will be faced with an amendment later by several of our friends to 
dramatically increase that number in the bill. Let me warn all 
Americans, all of us in this room, the numbers we have, the report from 
the NAS, tells us if you move those numbers too fast, just because you 
want to, if you push those numbers too high, too fast, you will produce 
lighter vehicles on the road. History tells us you will have more 
deaths and injury.
  The industry can do a great deal with technology to move fuel 
efficiency up. This bill pushes them hard and we will get new fuel 
efficiencies in SUVs and minivans. You go too far, and you end up 
compromising safety.
  This a good bill, a great step forward. I commend it to a favorable 
vote of this body.
  The CHAIRMAN. All debate time allotted to the Committee on Energy and 
Commerce has expired.
  The Chair will now recognize for 10 minutes of debate each the 
gentleman from New York (Mr. Boehlert) and the gentleman from Texas 
(Mr. Hall).
  The Chair recognizes the gentleman from New York (Mr. Boehlert).
  Mr. BOEHLERT. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I am pleased to bring before the House the Committee on 
Science portions of H.R. 4 which are primarily found in division B of 
the bill. These provisions were originally part of H.R. 2460, which our 
committee passed unanimously.
  I would like to submit for the Record at this point materials that 
were prepared for the report accompanying H.R. 2460, which describe in 
detail the nature of the provisions that are now in division B.

  1. Section-by-Section Analysis of H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


          division e: clean coal power initiative act of 2001

     Section 5000. Short Title
       Subsection 5000 cites the division as the ``Clean Coal 
     Power Initiative Act of 2001.''
     Sec. 5001. Findings
       Section 5001 contains the eight findings.
     Sec. 5002. Definitions
       Section 5003 defines the term ``cost and performance-based 
     goals'' to mean the cost and performance-based goals 
     established under section 5004, and the term ``Secretary'' to 
     mean the Secretary of Energy.
     Sec. 5003. Clean Coal Power Initiative
       Subsection 5003(a) requires the Secretary to carry out the 
     Clean Coal Power Initiative under: (1) this division; (2) the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C.5901 et seq.); (3) the Energy Reorganization 
     Act of 1974 (42 U.S.C.5801 et seq.); and (4) title XIII of 
     the Energy Policy Act of 1992 (42 U.S.C.13331 et seq.), to 
     achieve cost and performance goals established by the 
     Secretary under section 5004.
     Sec. 5004. Cost and Performance Goals
       Subsection 5004(a) requires the Secretary to perform an 
     assessment that establishes measurable cost and performance 
     goals for 2005, 2010, 2015, and 2020 for the programs 
     authorized by this division. Such assessment must be based on 
     the latest scientific, economic, and technical knowledge.
       In establishing the cost and performance goals, subsection 
     5004(b) requires the Secretary to consult with 
     representatives of: (1) the United States coal industry; (2) 
     State coal development agencies; (3) the electric utility 
     industry; (4) railroads and other transportation industries; 
     (5) manufacturers of advanced coal-based equipment; (6) 
     institutions of higher learning, national laboratories, and 
     professional and technical societies; (7) organizations 
     representing workers; (8) organizations formed to--(A) 
     promote the use of coal; (B) further the goals of 
     environmental protection; and (C) promote the production and 
     generation of coal-based power from advanced facilities; and 
     (9) other appropriate Federal and State agencies.
       Under subsection 5004(c), the Secretary shall: (1) not 
     later than 120 days after the date of enactment of this 
     division, issue a set of draft cost and performance goals for 
     public comment; and (2) not later than 180 days after the 
     date of enactment, after taking into consideration any public 
     comments received, submit to the Committee on Energy and 
     Commerce and the Committee on Science of the House of 
     Representatives, and to the Senate, the final cost and 
     performance goals.
     Sec. 5005. Authorization of Appropriations
       Except as provided in subsection 5005(c), subsection 
     5005(a) authorizes to be appropriated to the Secretary to 
     carry out the Clean Coal Power Initiative under section 5003 
     $200.0 million for each of the fiscal years 2002 through 
     2011, to remain available until expended.
       Notwithstanding subsection 5005(a), subsection 5005(b) 
     prohibits the use of funds to carry out the activities 
     authorized by this division after September 30, 2002, unless 
     the Secretary has transmitted to the Committee on Energy and 
     Commerce and the Committee on Science of the House of 
     Representatives, and to the Senate, the report required by 
     this subsection and one month has elapsed since that 
     transmission. The report shall include, with respect to 
     subsection 5005(a), a 10-year plan containing: (1) a detailed 
     assessment of whether the aggregate funding levels provided 
     under subsection 5005(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; (4) recommendations for a mechanism for 
     recoupment of Federal funding for successful commercial 
     projects; and (5) 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.
       Subsection 5005(c) provides that subsection 5005(b) shall 
     not apply to any project begun before September 30, 2002.
     Sec. 5006. Project Criteria
       Subsection 5006(a) prohibits the Secretary from providing 
     funding for project that does

[[Page H5014]]

     not advance efficiency, environmental performance, and cost 
     competitiveness well beyond the level of technologies that 
     are in operation or have been demonstrated as of the date of 
     the enactment of this division.
       Subsection 5006(b) contains the technical criteria for the 
     Clean Coal Power Initiative.
       Under subsection 5006(b)(1)(A), in allocating the funds 
     authorized under section 5005(a), the Secretary shall ensure 
     that at least 80 percent of the funds are used only for 
     projects on coalbased gasification technologies, including 
     gasification combined cycle, gasification fuel cells, 
     gasification coproduction and hybrid gasification/combustion.
       Subsection 5006(b)(1)(B) requires the Secretary to set 
     technical milestones specifying emissions levels that coal 
     gasification projects must be designed to and reasonably 
     expected to achieve. The milestones shall get more 
     restrictive through the life of the program, and such 
     milestones shall be designed to achieve by 2020 coal 
     gasification projects able to: (1) remove 99 percent of 
     sulfur dioxide; (2) emit no more than 0.05 pounds (lbs) of 
     nitrous oxides (NOx) per million British Thermal Unit (BTU); 
     (3) achieve substantial reductions in mercury emissions; and 
     (4) achieve a thermal efficiency of 60 percent (higher 
     heating value).
       For projects not described in subsection 5006(b)(1)(A) or 
     subsection 5006(b)(1)(B), subsection 5006(b)(2) requires the 
     Secretary to set technical milestones specifying emissions 
     levels that the projects must be designed to and reasonably 
     expected to achieve. The milestones shall get more 
     restrictive through the life of the program, and such 
     milestones shall be designed to achieve by 2010 projects able 
     to: (1) remove 97 percent of sulfur dioxide; (2) emit no 
     more than 0.08 lbs of NOX per million BTU; (3) 
     achieve substantial reductions in mercury emissions; and 
     (4) achieve a thermal efficiency of 45 percent (higher 
     heating value).
       Subsection 5006(c) prohibits the Secretary from providing a 
     funding award under this division unless the recipient of the 
     award has documented to the satisfaction of the Secretary 
     that: (1) the award recipient is financially viable without 
     the receipt of additional Federal funding; (2) the recipient 
     will provide sufficient information to the Secretary for the 
     Secretary to ensure that the award funds are spent 
     efficiently and effectively; and (3) a market exists for the 
     technology being demonstrated or applied, as evidenced by 
     statements of interest in writing from potential purchasers 
     of the technology.
       Subsection 5006(d) requires the Secretary to provide 
     financial assistance to projects that meet the requirements 
     of subsections 5006 (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 that use 
     coal as the primary feedstock as of the date of enactment of 
     this division.
       Subsection 5006(e) limits the Federal share of the cost of 
     a coal or related technology project funded by the Secretary 
     to not more than 50 percent.
       Subsection 5006(f) provides that neither the use of any 
     particular technology, nor the achievement of any emission 
     reduction, by any facility receiving assistance under this 
     division shall be taken into account for purposes of making 
     any determination under the Clean Air Act in applying the 
     provisions of that Act to a facility not receiving assistance 
     under this division, including any determination concerning 
     new source performance standards, lowest achievable emission 
     rate, best available control technology, or any other 
     standard, requirement, or limitation.
     Sec. 5007. Study
       Under subsection 5007(a), not later than one year after the 
     date of enactment of this division, and once every two years 
     thereafter through 2016, the Secretary, in cooperation with 
     other appropriate Federal agencies, must transmit to the 
     Committee on Energy and Commerce and the Committee on Science 
     of the House of Representatives, and to the Senate, a report 
     containing the results of a study to: (1) identify efforts 
     (and the costs and periods of time associated with those 
     efforts) that, by themselves or in combination with other 
     efforts, may be capable of achieving the cost and performance 
     goals; (2) develop recommendations for the Department of 
     Energy to promote the efforts identified under (1); and (3) 
     develop recommendations for additional authorities required 
     to achieve the cost and performance goals.
       In carrying out this section, subsection 5007(b) requires 
     the Secretary shall give due weight to the expert advice of 
     representatives of the entities described in subsection 
     5004(b).
     Sec. 5008. Clean Coal Centers of Excellence
       As part of the Clean Coal Power Initiative authorized in 
     section 5003, section 5008, which is included in the 
     manager's amendment, requires the Secretary to award 
     competitive, merit-based grants to universities for the 
     establishment of Centers of Excellence for Energy Systems of 
     the Future. Such centers shall be located at universities 
     with a proven record of conducting research on, developing, 
     or demonstrating clean coal technologies. The Secretary 
     shall provide grants to universities that can show the 
     greatest potential for demonstrating new clean coal 
     technologies.

  II. Committee on Science Views on H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


          DIVISION E: Clean Coal Power Initiative Act of 2001

       Division E of H.R. 4, the Clean Coal Power Initiative Act 
     of 2001, provides $2 billion over 10 years for the 
     Administration's Clean Coal Power Initiative. Like the 
     Administration, the Committee believes that coal is likely to 
     continue to be a significant source of electric power in the 
     U.S. for years to come, given its domestic abundance. 
     However, if that is to be the case, coal must become a far 
     more efficient and cleaner fuel. Such improvements will 
     require, among other actions, government investment in 
     research, development, demonstration and commercial 
     application of truly advanced coal technologies. Neither the 
     taxpayers nor the coal industry will be well served in the 
     long run if government investments are made in technologies 
     that do not ``push the envelope.'' Moreover, a concerted 
     effort will be needed to strengthen the management of clean 
     coal programs.
       With those concerns in mind, division E places a number of 
     requirements and restrictions on the Clean Coal Power 
     Initiative.
       First, the Committee is requiring a detailed report on how 
     the Initiative will be organized and implemented. The 
     Committee is disturbed that at Committee hearings, the 
     Administration could neither explain how the $2 billion 
     figure was arrived at nor how the money would be spent. Given 
     the priority the Administration has placed on the Initiative, 
     the Committee will allow the Initiative to begin. However, no 
     funds may be as of October 1, 2002, unless the Administration 
     has submitted the detailed report required by this division 
     and it has been before the Congress for 1 month.
       The report must be specific in explaining how the $2 
     billion figure was developed, the scope of the Initiative, 
     how the Initiative will operate, what technical milestones 
     will be established and how they will be achieved, and how 
     the Initiative can be guided or informed by the successes and 
     failures of past clean coal efforts. The report must also 
     include recommendations for recoupment of federal funds for 
     successful projects.
       The division also establishes strict, environmental 
     standards that projects must be designed to meet and 
     reasonably be expected to achieve in order to receive 
     funding. Moreover, at least 80 percent of the funding must be 
     devoted to projects related to gasification technologies that 
     are furthest from development and promise the greatest 
     environmental benefit among economically viable technologies, 
     and, therefore, the ones most deserving of government 
     support.
       The Committee intends that the Secretary set strict, 
     achievable, specific environmental milestones to ensure that 
     the projects comply with section 5006. The environmental 
     criteria in this division, which are taken from industry's 
     own technology roadmap, are not mere advisory guidelines. 
     They are precise requirements that the Initiative must be 
     designed to meet.
       The Committee intends that the efficiency requirements 
     refer to generation efficiency and that the efficiency 
     numbers apply to plants that are exclusively generating 
     power. The Secretary should issue equivalent efficiency 
     numbers for plants involved in the production of industrial 
     chemicals or other activities.
       The division also sets strict financial criteria for 
     participants in the Initiative. These criteria are absolutely 
     essential to the success of the program. The Committee 
     intends that the Secretary require specific, written 
     documentation and audits from the participants to meet the 
     requirements of subsection 5006(c). For example, a market 
     should exist for the technology being demonstrated or 
     applied, as evidenced by statements of interest in writing 
     from potential purchasers of technology.
       The Committee recommends that the Secretary consult with 
     objective, outside experts in developing the report, 
     including those from the National Academies of Science and 
     Engineering (who will eventually be reviewing the Initiative, 
     pursuant to section 2616 of H.R. 4) and the General 
     Accounting Office. The Committee also recommends that, in 
     writing the report and carrying out the program, the 
     Secretary consult with environmental groups and other 
     environmental experts (as a primary goal of the program is 
     making coal a more environmentally benign fuel), the coal 
     industry, the utility industry, and the coal equipment 
     manufacturing industry.
       The Committee is aware of a proposed dry coal cleaning 
     technology demonstration involving a pulverizer and dry 
     separator operating together to remove impurities from coal 
     and other minerals. The Committee encourages the Secretary to 
     provide assistance for demonstration of such innovative 
     magnetic separator technologies.
     Sec. 5008. Clean Coal Centers of Excellence
       Section 5008 directs the Secretary to provide grants to 
     universities for the establishment of clean coal centers of 
     excellence. Based on the Subcommittee on Energy's June 12, 
     2001 hearing on Clean Coal Technology and subsequent 
     discussions and materials, the Committee strongly encourages

[[Page H5015]]

     the Secretary to consider as potential recipients Southern 
     Illinois University, the University of Pittsburgh, Carnegie-
     Mellon University, and the Center for Electric Power at 
     Tennessee Technological University.

  I. Summary OF Major Provisions of H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


  division B: comprehensive energy research and technology act of 2001

       Division B of H.R. 4, the Comprehensive Energy Research and 
     Technology Act of 2001, authorizes a total of $16,802,153,000 
     for the period FY 2002-2009 in five titles for research, 
     development, demonstration, and commercial application 
     programs, projects, and activities of the Department of 
     Energy (DOE) and the Environmental Protection Agency (EPA) 
     Office of Air and Radiation (OAR).
       Title I (Energy Conservation and Energy Efficiency) 
     authorizes $3,025,542,000 for FY 2002-FY 2006 in six 
     subtitles, as follows:
       1. A--Alternative Fuel Vehicles: $200.0 million for FY 2002 
     for not more than 15 grants (with a maximum grant size of 
     $20.0 million) to State and local governments, or 
     metropolitan transit authorities for the demonstration and 
     commercial application of alternative fuel and ultra-low 
     sulfur diesel vehicles.
       2. B--Distributed Power Hybrid Energy Systems: Section 2125 
     authorizes $20.0 million for FY 2002 for competitive, merit-
     based grants for the development of micro-generation energy 
     technology.
       3. C--Secondary Electric Vehicle Battery Use: $1.0 million 
     for FY 2002, and $7.0 million for each of FY 2003 and FY 2004 
     for a research, development, and demonstration (RD&D) 
     program.
       4. D--Green School Buses: $40.0 million for FY 2002, $50.0 
     million for FY 2003, $60.0 million for FY 2004, $70.0 million 
     for FY 2005, and $70.0 million for FY 2006 for competitive 
     grants for the demonstration and commercial application of 
     alternative fuel and ultra-low sulfur diesel school buses.
       5. E--Next Generation Lighting Initiative: Authorizes the 
     Secretary of Energy (Secretary) to research, develop, and 
     conduct demonstration activities on advanced lighting 
     technologies, including white light emitting diodes.
       6. F--DOE Authorization of Appropriations: In addition to 
     the amounts authorized under subtitle A, section 2125 of 
     subtitle B, and subtitle D, authorizes $625.0 million for FY 
     2002, $700.0 million for FY 2003, and $800.0 million for FY 
     2004 for subtitles B, C, E, and for Energy Conservation 
     operation and maintenance (including Building Technology, 
     State and Community Sector (Nongrants), Industry Sector, 
     Transportation Sector, Power Technologies, and Policy and 
     Management).
       7. G--EPA OAR Authorization of Appropriations: $121.9 
     million for FY 2002, $126.8 million for FY 2003, and $131.8 
     million for FY 2004.
       In addition, subtitle H (National Building Performance 
     Initiative) requires the Director of the Office of Science 
     and Technology Policy (OSTP) to establish and Interagency 
     Group responsible for the development and implementation of a 
     National Building Performance Initiative to address energy 
     conservation research and development (R&D) and related 
     issues.
       Title II (Renewable Energy) authorizes $2,468,200,000 for 
     FY 2002-FY 2006 in four subtitles, as follows:
       1. A--Hydrogen: $60.0 million for FY 2002, $70.0 million 
     for FY 2003, $80.0 million for FY 2004, $90.0 million for FY 
     2005, and $100.0 million for FY 2006.
       2. B--Bioenergy: $148.2 million for FY 2002, $162.9 million 
     for FY 2003, $179.9 million for FY 2004, $199.4 million for 
     FY 2005, and $221.8 million for FY 2006.
       3. C--Transmission Infrastructure Systems: Directs the 
     Secretary to develop and implement a comprehensive RD&D and 
     commercial application program to ensure the reliability, 
     efficiency, and environmental integrity of electrical 
     transmission systems.
       4. D--DOE Authorization of Appropriations: $535.0 million 
     for FY 2002, $639.0 million for FY 2003, and $683.0 million 
     for FY 2004, $70.0 million for FY 2005, and $70.0 million for 
     FY 2006, including the amounts authorized under subtitle A 
     and subtitle B and for Renewable Energy operation and 
     maintenance, including subtitle C, Geothermal Technology 
     Development, Hydropower, Concentrating Solar Power, 
     Photovoltaic Energy Systems, Solar Building Technology 
     Research, Wind Energy Systems, High Temperature 
     Superconducting Research and Development, Energy Storage 
     Systems, Transmission Reliability, International Renewable 
     Energy Program, Renewable Energy Production Incentive 
     Program, Renewable Program Support, National Renewable Energy 
     Laboratory, and Program Direction.
       Title III (Nuclear Energy) authorizes $724,995,000 for FY 
     2002-FY 2006 in three subtitles, as follows:
       1. A--University Nuclear Science and Energy: $30.2 million 
     for FY 2002, $41.0 million for FY 2003), $47.9 million for FY 
     2004, $55.6 million for FY 2004, and $61.4 million for FY 
     2005.
       2. B--Advanced Fuel Recycling Technology R&D Program: $10.0 
     million for FY 2002, and such sums as are necessary for each 
     of FY 2003 and FY 2004.
       3. C--DOE Authorization of Appropriations: $191.2 million 
     for FY 2002, $199.0 million for FY 2003, and $207.0 million 
     for FY 2004 for nuclear energy operation and maintenance, 
     including subtitle A, the Nuclear Energy Research Initiative 
     ($60.0 million for FY 2002, and such sums as are necessary 
     for each of FY 2003 and FY 2004), the Nuclear Energy Plant 
     Optimization Program ($15.0 million for FY 2002, and such 
     sums as are necessary for each of FY 2003 and FY 2004), 
     Nuclear Energy Technologies ($20.0 million for FY 2002, and 
     such sums as are necessary for each of FY 2003 and FY 2004), 
     Advanced Radioisotope Power Systems, Test Reactor Landlord, 
     and Program Direction. In addition, funds are authorized to 
     complete two construction projects.
       Title IV (Fossil Energy) authorizes $5,933,000,000 for FY 
     2002-FY 2009 in five subtitles, as follows:
       1. A--Coal: $172.0 million for FY 2002, $179.0 million for 
     FY 2003, $186.0 million for FY 2005 for coal and related 
     technologies programs.
       2. B--Oil and Gas: Authorizes RD&D and commercial 
     application programs on petroleum-oil technology and natural 
     gas technologies.
       3. C--Ultra-Deepwater and Unconventional Drilling: $4,516.0 
     million for the period FY 2002-FY 2009 for RD&D of ultra-
     deepwater natural gas and other petroleum exploration and 
     production technologies.
       4. D--Fuel Cells: Authorizes an RD&D program on fuel cells, 
     including $28.0 million for each of FY 2002-FY 2004 for the 
     demonstration of manufacturing production and processes.
       5. E--DOE Authorization of Appropriations: $282.0 million 
     for FY 2002, $293.0 million for FY 2003, and $305.0 million 
     for subtitle B, subtitle D, and for Fossil Energy 
     R&D Headquarters Program Direction, Field Program 
     Direction, Plant and Capital Equipment, Cooperative 
     Research and Development, Import/Export Authorization, and 
     Advanced Metallurgical Processes.
       Title V (Science) authorizes $4,541,858,000 for FY 2002-FY 
     2006 in four subtitles, as follows:
       1. A--Fusion Energy Sciences: $320.0 million for FY 2002 
     and $335.0 million for FY 2003.
       2. B--Spallation Neutron Source (SNS): $276.3 million for 
     FY 2002, $201.571 million for FY 2003, $124.6 million for FY 
     2004, $79.8 million for FY 2005, and $41.1 million for FY 
     2006 for completion of construction, and $15.353 million for 
     FY 2002 and $103.279 million for FY 2003-FY 2006 for other 
     project costs. Caps the project at $1,192.7 million for costs 
     of construction, $219.0 million for other project costs, and 
     $1,411.7 million for total project cost.
       3. C--Facilities, Infrastructure, and User Facilities--
     Requires the Secretary to develop and implement a least-cost 
     nonmilitary energy laboratory facility and infrastructure 
     strategy, and requires full and open competition for 
     universities and other entities in the establishment or 
     operation of a DOE user facility.
       4. E--DOE Authorization of Appropriations: $3,299,558,000 
     for FY 2002 for Office of Science operation and maintenance 
     (also including Fusion Energy Sciences, SNS, subtitle C, High 
     Energy Physics, Nuclear Physics, Biological and Environmental 
     Research, Basic Energy Sciences (except for the Spallation 
     Neutron Source), Advanced Scientific Computing Research, 
     Energy Research Analysis, Multiprogram Energy Laboratories-
     Facilities Support, Facilities and Infrastructure, Safeguards 
     and Security, and Program Direction), and including $5.0 
     million for FY 2002 for research in the use of precious 
     metals in catalysts. Also authorizes funds to complete a 
     number of construction projects.
       In addition, subtitle D (Advisory Panel on Office of 
     Science) requires the Director of OSTP to establish an 
     Advisory Panel on the DOE Office of Science.
       Title VI (Miscellaneous) contains two subtitles. Subtitle A 
     (General Provisions for the Department of Energy), identifies 
     current statutes that should be used for procedures and 
     guidelines to carry out the Act, limits use of funds, and 
     establishes cost-sharing requirements and reprogramming 
     guidelines. Subtitle B (Other Miscellaneous Provisions) 
     establishes limits on general plant projects and construction 
     projects, provides authority for conceptual and construction 
     design activities, requires that certain reports prepared 
     pursuant to the National Energy Policy Development Group 
     recommendations be transmitted to specific congressional 
     committees, and requires periodic reviews and assessments of 
     the programs authorized by the Act.
       Table I summarizes the authorizations for the period FY 
     2002-2009 for programs, projects, and activities in five 
     titles in Division B. Table 2 summarizes and Table 3 details 
     the division's authorizations for FY 2002-FY 2004.

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 II. Section-by-Section Analysis of H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


  DIVISION B: Comprehensive Energy Research and Technology Act of 2001

     Section 2001. Short Title
       Subsection 2001 cites the division as the ``Comprehensive 
     Energy Research and Technology Act of 2001.''
     Sec. 2002. Findings
       Section 2003 contains the eight findings.
     Sec. 2003. Purposes
       Section 2003 contains the eight purposes of the Act.
     Sec. 2004. Goals
       Subsection 2004(a) states that, subject to subsection 
     2004(b), the Secretary should conduct a balanced energy RD&D 
     and commercial application portfolio of programs guided by 
     the specific goals listed for each of (1) Energy Conservation 
     and Energy Efficiency, (2) Renewable Energy, (3) Nuclear 
     Energy, (4) Fossil Energy and (5) Science.
       Subsection 2004(b) requires the Secretary of Energy, in 
     consultation with others, to perform an assessment that 
     establishes measurable cost and performance-based goals, or 
     that modifies the goals under subsection (a), for 2005, 2010, 
     2015, and 2020, for each of the programs authorized by this 
     Act, that would enable each such program to meet the purposes 
     under section 2003. The assessment is to be based on the 
     latest scientific and technical knowledge, and shall also 
     take into consideration, as appropriate, the comparative 
     environmental impacts (including emissions of greenhouse 
     gases) of the energy saved or produced by specific programs.
       In establishing the measurable cost and performance-based 
     goals under subsection 2004(b), subsection 2004(c) requires 
     the Secretary to consult with the private sector, 
     institutions of higher learning, national laboratories, 
     environmental organizations, professional and technical 
     societies, and any other persons the Secretary considers 
     appropriate.
       Subsection 2004(d) requires the Secretary, within 120 days 
     of the date of enactment of this Act, to issue and publish in 
     the Federal Register a set of draft measurable cost and 
     performance-based goals for public comment for those programs 
     established before the date of enactment of this Act. (In the 
     case of a program not established before the date of the 
     enactment of this Act, then not later than 120 days after the 
     date of establishment of the program). Not later than 60 days 
     after the date of publication, after taking into 
     consideration any public comments received, the Secretary is 
     to transmit to the Congress and publish in the Federal 
     Register the final measurable cost and performance-based 
     goals. Such goals must be updated on a biennial basis.
     Sec. 2005. Definitions
       Section 2005 defines the terms: (1) ``Administrator'' to 
     mean the Administrator of the Environmental Protection Agency 
     (EPA); (2) ``appropriate congressional committees'' to mean 
     (A) the Committee on Science and the Committee on 
     Appropriations of the House of Representatives; and (B) the 
     Committee on Energy and Natural Resources and the Committee 
     on Appropriations of the Senate; (3) the ``Department'' to 
     mean the Department of Energy; and (4) the ``Secretary'' to 
     mean the Secretary of Energy.
     Sec. 2006. Authorizations
       Section 2006 states that authorizations of appropriations 
     under this Act are for environmental R&D, scientific and 
     energy RD&D and commercial application of energy technology 
     programs, projects, and activities. This is consistent with 
     the Science Committee's jurisdiction under rule X, clause I 
     (n) of the Rules of the House.
     Sec. 2007. Balance of Funding Priorities
       Subsection 2007(a) expresses the sense of the Congress that 
     the funding of the various programs authorized by titles I 
     through IV of this Act should remain in the same proportion 
     to each other as provided in this Act, regardless of the 
     total amount of funding made available for those programs.
       If the amounts appropriated in general appropriations Acts 
     for FY 2002, FY 2003, or FY 2004 for the programs authorized 
     in titles I through IV of this Act are not in the same 
     proportion to one another as are the authorizations for such 
     programs in this Act, subsection 2207(b) requires the 
     Secretary and the Administrator, within 60 days after the 
     date of the enactment of the last general appropriations Act 
     appropriating amounts for such programs, to transmit to the 
     appropriate congressional committees a report describing the 
     programs, projects, and activities that would have been 
     funded if the proportions provided for in this Act had been 
     maintained in the appropriations. The amount appropriated for 
     the program receiving the highest percentage of its 
     authorized funding for a fiscal year shall be used as the 
     baseline for calculating the proportional deficiencies of 
     appropriations for other programs in that fiscal year.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

     Sec. 2101. Short Title
       Subsection 2101 cites the subtitle as the ``Alternative 
     Fuel Vehicle Acceleration Act of 2001.''
     Sec. 2102. Definitions
       Section 2102 defines the terms ``alternative fuel 
     vehicle,'' ``pilot program,'' and ``ultra-low sulfur diesel 
     vehicle.''
     Sec. 2103. Pilot Program
       Subsection 2103(a) directs the Secretary to establish an 
     alternative fuel and ultra-low sulfur diesel vehicle energy 
     demonstration and commercial application competitive grant 
     pilot program to provide not more than 15 grants to State 
     governments, local governments, or metropolitan 
     transportation authorities to carry out a project or projects 
     for the purposes described in subsection (b).
       Subsection 2103(b) defines the purposes for which the 
     grants may be used.
       Subsections 2103(c), (d), and (e) set out the grant 
     application requirements, selection criteria, and pilot 
     project requirements, respectively.
       Subsection 2103(e) limits: (1) the amount of an award to 
     any one applicant to not more than $20.0 million; (2) the 
     Federal cost share to not more than 50 percent; and (3) the 
     length of the funding period to not more than five years. It 
     also directs the Secretary to assure nationwide deployment of 
     alternative fuel vehicles through broad geographic 
     distribution of project sites; and to establish mechanisms 
     that ensure the dissemination of information gained by the 
     pilot program participants to all interested parties 
     including all other applicants.
       Subsection 2103(f) directs the Secretary to publish in the 
     Federal Register, Commerce Business Daily, and elsewhere 
     requests for project grant applications under the pilot 
     program, which shall be due within six months after the 
     notice publication. The Secretary shall select from among the 
     project grant applications by a competitive, peer review 
     process to award grants under the pilot program.
       Section 2103(g) mandates that the Secretary shall provide 
     not less than 20 percent and not more than 25 percent of the 
     grant funding for the acquisition of ultra-low sulfur diesel 
     vehicles.
     Sec. 2104. Reports to Congress
       Section 2104 requires the Secretary to transmit an initial 
     report to the appropriate congressional committees within two 
     months after the grants are awarded detailing the successful 
     applicants' projects, a listing of the applicants and a 
     description of the information dissemination mechanism under 
     2103(e)(5). Not later than three years after the date of 
     enactment, and annually thereafter until the program ends, 
     the Secretary is required to transmit a report containing an 
     evaluation of the pilot program's effectiveness to the same 
     committees. This evaluation report is to include an 
     assessment of the benefits to the environment derived from 
     the projects included in the pilot program as well as an 
     estimate of the potential benefits to the environment to be 
     derived from widespread application of alternative fuel 
     vehicles and ultralow sulfur diesel vehicles.
     Sec. 2105. Authorization of Appropriations
       Section 2105 authorizes $200.0 million for FY 2002 for the 
     pilot program, to remain available until expended.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

          Subtitle B--Distributed Power Hybrid Energy Systems

     Sec. 2121. Findings
       Section 2121 lists 4 findings.
     Sec. 2122. Definitions
       Section 2122 defines the terms ``distributed power hybrid 
     system'' and ``distributed power source.''
     Sec. 2123. Strategy
       Under subsection 2123(a), not later than one year after the 
     date of the enactment of this Act, the Secretary shall 
     develop and transmit to the Congress a distributed power 
     hybrid systems strategy showing: (1) needs best met with 
     distributed power hybrid systems configurations, especially 
     systems including one or more solar or renewable power 
     sources; and (2) technology gaps and barriers (including 
     barriers to efficient connection with the power grid) that 
     impede the use of distributed power hybrid systems.
       Subsection 2123(b) specifies five elements the strategy 
     should address, including a comprehensive RD&D and commercial 
     application program to ensure the reliability, efficiency, 
     and environmental integrity of distributed energy resources.
       Subsection 2123(c) requires the Secretary to implement the 
     strategy transmitted under subsection 2123(a) and the 
     research program under subsection 2123(b). Activities 
     pursuant to the strategy are to be integrated with other 
     activities of the DOE's Office of Power Technologies.
     Sec. 2124. High Power Density Industry Program
       Subsection 2124(a) requires the Secretary to develop and 
     implement a comprehensive RD&D and commercial application 
     program to improve energy efficiency, reliability, and 
     environmental responsibility in high power density 
     industries, such as data centers, server farms, 
     telecommunications facilities, and heavy industry.
       Subsection 2124(b) provides that in carrying out this 
     section, the Secretary shall consider technologies that 
     provide: (1) significant improvement in efficiency of high 
     power density facilities, and in data and telecommunications 
     centers, using advanced thermal control technologies; (2) 
     significant improvements in air-conditioning efficiency

[[Page H5029]]

     in facilities such as data centers and telecommunications 
     facilities; (3) significant advances in peak load reduction; 
     and (4) advanced real time metering and load management and 
     control devices.
       Subsection 2124(c) requires that activities pursuant to 
     this program be integrated with other activities of the DOE's 
     Office of Power Technologies.
     Sec. 2125. Micro-Cogeneration Energy Technology
       Section 2125 requires the Secretary to make competitive, 
     merit-based grants to consortia of private sector entities 
     for the development of micro-cogeneration energy technology. 
     The consortia shall explore the creation of small-scale 
     combined heat and power through the use of residential 
     heating appliances. The section also authorizes $20.0 
     million, to remain available until expended.
     Sec. 2126. Program Plan
       Section 2126 directs the Secretary to consult with 
     appropriate representatives of the distributed energy 
     resources, power transmission, and high power density 
     industries, other appropriate entities, and Federal, State 
     and local agencies, within four months of enactment, to 
     present to Congress a five-year program plan to guide 
     activities under this subtitle.
     Sec. 2127. Report
       Section 2127 instructs the Secretary, jointly with other 
     appropriate Federal agencies, to report to Congress within 
     two years of enactment and every two years thereafter for the 
     duration of the program on the program's progress made to 
     achieve the purposes of this subtitle.
     Sec. 2128. Voluntary Consensus Standards
       Under this section, not later than two years after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the NIST, sball work with the Institute of Electrical and 
     Electronic Engineers and other standards development 
     organizations toward the development of voluntary consensus 
     standards for distributed energy systems for use in 
     manufacturing and using equipment and systems for connection 
     with electric distribution systems, for obtaining electricity 
     from, or providing electricity to, such systems.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

           Subtitle C--Secondary Electric Vehicle Battery Use

     Sec. 2131. Definitions
       Section 2131 defines the terms ``battery'' and ``associated 
     equipment.''
     Sec. 2132. Establishment of Secondary Electric Vehicle 
         Battery Use Program
       Subsection 2132(a) directs the Secretary to establish and 
     carry out a RD&D program for the secondary use of batteries 
     originally used in transportation applications. The program 
     should demonstrate the use of batteries in secondary 
     application, including utility and commercial power storage 
     and power quality and should be structured to evaluate the 
     performance, including longevity of useful service life and 
     costs, of such batteries in field operations, and evaluate 
     the necessary supporting infrastructure, including disposal 
     and reuse of batteries. The Secretary is directed to 
     coordinate with ongoing secondary battery use programs 
     underway at the national laboratories and in industry.
       Subsection 2132(b) directs the Secretary, no later than six 
     months after the date of the enactment of this Act, to 
     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. 
     Proposals submitted in response to a solicitation under 
     this section shall include: (1) a description of the 
     project, including the batteries to be used in the 
     project; the proposed locations and applications for the 
     batteries; the number of batteries to be demonstrated; and 
     the type, characteristics, and estimated life-cycle costs 
     of the batteries compared to other energy storage devices 
     currently in use; (2) the contribution, if any, of State 
     or local governments and other persons to the 
     demonstration project; (3) the type of associated 
     equipment to be demonstrated and the type of supporting 
     infrastructure to be demonstrated; and (4) any other 
     information the Secretary considers appropriate. If the 
     proposal includes a lease arrangement, the proposal shall 
     indicate the terms of such lease arrangement for the 
     batteries and associated equipment.
       Subsection 2132(c) directs the Secretary, no later than 
     three months after the closing date established by the 
     Secretary for receipt of proposals under subsection 2132(b), 
     to select at least five proposals to receive financial 
     assistance under this subsection. No one project selected is 
     permitted to receive more than 25 percent of the funds 
     authorized under this section, and no more than three 
     projects selected under this section shall demonstrate the 
     same battery type.
       In selecting a proposal under subsection 2132(c), the 
     Secretary must consider:
       (1) the ability of the proposer to acquire the batteries 
     and associated equipment and to successfully manage and 
     conduct the demonstration project, including the reporting 
     requirements;
       (2) the geographic and climatic diversity of the projects 
     selected;
       (3) the long-term technical and competitive viability of 
     the batteries to be used in the project and of the original 
     manufacturer of such batteries;
       (4) the suitability of the batteries for their intended 
     uses;
       (5) the technical performance of the battery, including the 
     expected additional useful life and the battery's ability to 
     retain energy;
       (6) the environmental effects of the use of and disposal of 
     the batteries proposed to be used in the project selected;
       (7) the extent of involvement of State or local government 
     and other persons in the demonstration project and whether 
     such involvement will permit a reduction of the Federal cost 
     share per project or otherwise be used to allow the Federal 
     contribution to be provided to demonstrate a greater number 
     of batteries; and
       (8) such other criteria as the Secretary considers 
     appropriate.
       The Secretary must require that as a part of a 
     demonstration project, the users of the batteries provide to 
     the proposer information regarding the operation, 
     maintenance, performance, and use of the batteries, and the 
     proposer provide such information to the battery 
     manufacturer, for three years after the beginning of the 
     demonstration project. The Secretary must also require the 
     proposer to provide to the Secretary information regarding 
     the operation, maintenance, performance, and use of the 
     batteries that the Secretary may request during the period of 
     the demonstration project. The proposer must provide at least 
     50 percent of the costs associated with the proposal.
     Sec. 2133. Authorization of appropriations
       Section 2133 authorizes (from amounts authorized under 
     section 2161(a)) for purposes of this subtitle $1.0 million 
     for FY 2002, $7.0 million for FY 2003 and $7.0 million for FY 
     2004, to remain available until expended.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                     Subtitle D--Green School Buses

     Sec. 2141. Short Title
       Section 2141 cites the subtitle as the ``Clean Green School 
     Bus Act of 2001.''
     Sec. 2142. Establishment of Pilot
       Subsection 2142(a) directs the Secretary to establish a 
     pilot program for awarding grants on a competitive basis to 
     eligible entities for the demonstration and commercial 
     application of alternative fuel school buses and ultra-low 
     sulfur diesel school buses.
       Subsection 2142(b) requires the Secretary, no later than 
     three months after the date of enactment of this Act, to 
     establish and publish in the Federal Register grant 
     requirements on eligibility for assistance, and on 
     implementation of the program established under subsection 
     (a), including certification requirements to ensure 
     compliance with this subtitle.
       Subsection 2142(c) requires the Secretary, no later than 
     six months after the date of enactment of this Act, to 
     solicit proposals for grants under this section.
       Subsection 2142(d) requires that a grant be awarded, under 
     this section only, to a local governmental entity responsible 
     for providing school bus service for one or more public 
     school systems or, jointly with a contracting entity that 
     provides school bus service to the public school system or 
     systems.
       Subsection 2142(e) requires that grants under this section 
     shall be for the demonstration and commercial application of 
     technologies to facilitate the use of alternative fuel school 
     buses and ultra-low sulfur diesel school buses in lieu of 
     buses manufactured before model year 1977 and diesel-powered 
     buses manufactured before model year 1991. 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. When awarding grants, the 
     Secretary shall give priority to applicants who can 
     demonstrate the use of alternative fuel buses and ultra-low 
     sulfur diesel school buses in lieu of buses manufactured 
     before model year 1977.
       Subsection 2142(f) requires that a grant provided under 
     this section shall include the following conditions:
       (1) 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 five years;
       (2) funds provided under the grant may only be used to pay 
     the cost, except as provided in the following paragraph (3), 
     of new alternative fuel school buses or ultra-low sulfur 
     diesel school buses, including State taxes and contract fees 
     to provide-
       (i) up to 10 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 15 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) the grant recipient shall be required to provide at 
     least the lesser of 15 percent of the total cost of each bus 
     received or $15,000 per bus;
       (4) in the case of a grant recipient receiving a grant to 
     demonstrate ultra-low sulfur diesel school buses, the grant 
     recipient shall be required to provide documentation to the 
     satisfaction of the Secretary that diesel fuel containing 
     sulfur at not more than 15 parts

[[Page H5030]]

     per million (PPM) 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.
       Subsection 2142(g) requires that funding under a grant made 
     under this section may be used to demonstrate the use only of 
     new alternative fuel school buses or ultra-low sulfur diesel 
     school buses:
       (1) with a gross vehicle weight of greater than 14,000 
     pounds;
       (2) that are powered by a heavy duty engine;
       (3) that, in the case of alternative fuel school buses, 
     emit not more than--
       (A) 2.5 grains per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grains per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2001 and 2002; and
       (B) 1.8 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grains per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2003 through 2006; and
       (4) that, in the case of ultra-low sulfur diesel school 
     buses, emit not more than--
       (A) 3.0 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grams per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2001 through 2003; and
       (B) 2.5 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grams per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2004 through 2006, except that under no 
     circumstances shall buses be acquired under this section that 
     emit non-methane hydrocarbons, oxides of nitrogen, or 
     particulate matter at a rate greater than the best performing 
     technology of ultra-low sulfur diesel school buses 
     commercially available at the time the grant is made.
       Subsection 2142(h) requires the Secretary, to the maximum 
     extent practicable, to achieve nationwide deployment of 
     alternative fuel school buses through the program under this 
     section, and to 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.
       Subsection 2142(i) requires the Secretary to provide not 
     less than 20 percent and not more than 25 percent of the 
     grant funding made available under this section for any 
     fiscal year for the acquisition of ultra-low sulfur diesel 
     school buses.
       Subsection 2142(j) defines the term ``alternative fuel 
     school bus'' to mean a bus powered substantially by 
     electricity (including electricity supplied by a fuel cell), 
     or by liquefied natural gas, compressed natural gas, 
     liquefied petroleum gas, hydrogen, propane, or methanol or 
     ethanol at no less than 85 percent by volume. It also defines 
     the term ``Ultra-low sulfur diesel school bus'' to mean a 
     school bus powered by diesel fuel which contains not more 
     than 15 PPM sulfur.
     Sec. 2143. Fuel Cell Development and Demonstration Program
       Subsection 2143(a) requires the Secretary to establish a 
     program for entering into cooperative agreements with 
     private-sector fuel cell bus developers for the development 
     of fuel-cell-powered school buses, and subsequently with not 
     less than two 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.
       Subsection 2143(b) requires the non-Federal contribution 
     for activities funded under this section to be no less than 
     20 percent for fuel infrastructure development activities and 
     no less than 50 percent for demonstration activities and for 
     non-fuel infrastructure development activities.
       Subsection 2143(c) limits the amount authorized under 
     section 2144 that may be used for carrying out this section 
     for the period encompassing FY 2002 through FY 2006 to no 
     more than $25.0 million.
       Subsection 2143(d) requires the Secretary, no later than 
     three years after the date of enactment of this Act, and, 
     again, no later than October 1, 2006, to transmit to Congress 
     a report that evaluates the process of converting natural gas 
     infrastructure to accommodate fuel-cell-powered school buses 
     and assesses the results of the development and demonstration 
     program under this section.
     Sec. 2144. Authorization of Appropriations
       Section 2144 authorizes $40.0 million for FY 2002, $50.0 
     million for FY 2003, $60.0 million for FY 2004, $70.0 million 
     for FY 2005, and $80.0 million for FY 2006, to remain 
     available until expended, to carry out this subtitle.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                  Subtitle E--Next Generation Lighting

     Sec. 2151. Short Title
       Section 2151 cites the subtitle as ``Next Generation 
     Lighting Initiative Act.''
     Sec. 2152. Definition
       Section 2152 defines the term ``Lighting Initiative'' to 
     mean the ``Next Generation Lighting Initiative'' established 
     under subsection 2153(a).
     Sec. 2153. Next Generation Lighting Initiative
       Subsection 2153(a) authorizes the Secretary to establish a 
     Lighting Initiative to be known as the ``Next Generation 
     Lighting Initiative'' to research, develop, and conduct 
     demonstration activities on advanced lighting technologies, 
     including white light emitting diodes.
       Subsection 2153(b) states the research objectives of the 
     Lighting Initiative to develop, by 2011, advanced lighting 
     technologies that, compared to incandescent and fluorescent 
     lighting technologies as of the date of the enactment of this 
     Act, are longer lasting, more energy-efficient and cost-
     competitive.
     Sec. 2154. Study
       Subsection 2154(a) requires the Secretary, in consultation 
     with other Federal agencies, as appropriate, no later than 
     six months after the date of enactment of this Act, to 
     complete a study on strategies for the development and 
     commercial application of advanced lighting technologies. The 
     Secretary shall request a review by the National Academies of 
     Sciences and Engineering of the study under this subsection, 
     and shall transmit the results of the study to the 
     appropriate congressional committees.
       Subsection 2154(b) requires that the study include the 
     development of a comprehensive strategy to implement the 
     Lighting Initiative and identifying the research and 
     development, manufacturing, deployment, and marketing 
     barriers that must be overcome to achieve a goal of a 25 
     percent market penetration by advanced lighting technologies 
     into the incandescent and fluorescent lighting market by the 
     year 2012.
       Subsection 2154(c) requires the Secretary to modify the 
     implementation of the Lighting Initiative, if necessary, to 
     take into consideration the recommendations of the National 
     Academies of Sciences and Engineering, as soon as practicable 
     after the review of the study under subsection 2154(a) is 
     transmitted to the Secretary by the National Academies of 
     Sciences and Engineering.
     Sec. 2155. Grant Program
       Subsection 2155(a) permits the Secretary to make merit-
     based competitive grants to firms and research organizations 
     that conduct RD&D projects related to advanced lighting 
     technologies, subject to section 2603 of this Act.
       Subsection 2155(b) requires an annual independent review of 
     the grant-related activities of firms and research 
     organizations receiving a grant under this section to be 
     conducted by a committee appointed by the Secretary under the 
     Federal Advisory Committee Act (5 U.S.C. App.), or, at the 
     request of the Secretary, a committee appointed by the 
     National Academies of Sciences and Engineering. Using clearly 
     defined standards established by the Secretary, the review 
     shall assess technology advances and progress toward 
     commercialization of the grant-related activities of firms or 
     research organizations during each fiscal year of the grant 
     program.
       Subsection 2155(c) requires the national laboratories and 
     other Federal agencies, as appropriate, to cooperate with and 
     provide technical and financial assistance to firms and 
     research organizations.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

    Subtitle F--Department of Energy Authorization of Appropriations

     Sec. 2161. Authorization of Appropriations
       Subsection 2161 (a) authorizes $625.0 million for FY 2002, 
     $700.0 million for FY 2003; and (3) $800 million for FY 2004 
     for Energy Conservation operation and maintenance (including 
     Building Technology, State and Community Sector, Industry 
     Sector, Transportation Sector, Power Technologies, and Policy 
     and Management), to remain available until expended. These 
     amount are in addition to: (1) $200.0 million authorized 
     for FY 2002 under section 2105 for alternative fuel and 
     ultra-low sulfur diesel vehicles; (2) $20.0 million for FY 
     2002 authorized under section 2125 for micro-cogeneration 
     energy technology; and (3) $40.0 million for FY 2002, 
     $50.0 million for FY 2003, and $60.0 million for FY 2004 
     authorized under section 2144 for green school buses.
       Subsection 2161(b) provides that none of the funds 
     authorized to be appropriated in subsection 2131(a) may be 
     used for: ``(1) Building Technology, State and Community 
     Sector--(A) Residential Building Energy Codes; (B) Commercial 
     Building Energy Codes; (C) Lighting and Appliance Standards; 
     (D) Weatherization Assistance Program; (E) State Energy 
     Program; or (2) Federal Energy Management Program.'' These 
     limitations are included to preserve the Science Committee's 
     sole jurisdiction over the bill since the jurisdiction of 
     programs under this subsection 2131(b) either resides with 
     the Committee on Energy and Commerce or is shared with that 
     Committee.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

Subtitle G--Environmental Protection Agency Office of Air and Radiation 
                    Authorization of Appropriations

     Sec. 2171. Short Title
       Section 2171 cites the subtitle as the ``Environmental 
     Protection Agency Office of Air and Radiation Authorization 
     Act of 2001.''
     Sec. 2172. Authorization of Appropriations
       Section 2172 authorizes to be appropriated to the 
     Administrator for the Office of Air and Radiation Climate 
     Change Protection Programs $121.942 million for FY 2002, 
     $126.8 million for FY 2003, and $131.8 million for FY 2004, 
     to remain available until expended, of which:
       (1) $52.731 million for FY 2002, $54.8 million for FY 2003, 
     and $57.0 million for FY 2004 shall be for Buildings;
       (2) $32.441 million for FY 2002, $33.7 million for FY 2003, 
     and $35.0 million for FY 2004 shall be for Transportation;

[[Page H5031]]

       (3) $27.295 million FY 2002, $28.4 million for FY 2003, and 
     $29.5 million for FY 2004 shall be for Industry;
       (4) $1.7 million for FY 2002, $1.8 million FY 2003, and 
     $1.9 million for FY 2004 shall be for Carbon Removal;
       (5) $2.5 million for FY 2002, $2.6 million for FY 2003, and 
     $2.7 million for FY 2004 shall be for State and Local 
     Climate; and
       (6) $5.275 million for FY 2002, $5.5 million for FY 2003, 
     and $5.7 million for FY 2004 shall be for International 
     Capacity Building.
     Sec. 2173. Limits on Use of Funds
       Subsection 2173(a) prohibits EPA from using funds to 
     produce or provide articles or services for the purpose of 
     selling the articles or services to a person outside the 
     Federal Government,  unless the Administrator determines that 
     comparable articles or services are not available from a 
     commercial source in the United States.
       Subsection 2173(b) prohibits EPA from using funds to 
     prepare or initiate Requests for Proposals for a program if 
     Congress has not authorized the program.
     Sec. 2174. Cost Sharing
       Except as other-wise provided in this subtitle, subsection 
     2174(a) mandates that for R&D programs carried out under this 
     subtitle, the Administrator shall require a commitment from 
     non-Federal sources of at least 20 percent of the cost of the 
     project. The Administrator may reduce or eliminate the non-
     Federal requirement under this subsection if the 
     Administrator determines that the R&D is of a basic or 
     fundamental nature.
       Similarly, under subsection 2174(b) the Administrator shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this subtitle to be provided from 
     non-Federal sources. The Administrator may reduce the non-
     Federal requirement under this subsection if the 
     Administrator 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 
     subtitle.
       In calculating the amount of the non-Federal commitment 
     under subsection (a) or (b), subsection 2174(c) permits the 
     Administrator to include personnel, services, equipment, and 
     other resources.
     Sec. 2175. Limitations on Demonstrations and Commercial 
         Application of Energy Technology
       Section 2175 requires the Administrator to provide funding 
     only for scientific or energy demonstration or commercial 
     application programs, projects or activities for technologies 
     or processes that can reasonably be expected to yield new, 
     measurable benefits to the cost, efficiency, or performance 
     of the technology or process.
     Sec. 2176. Reprogramming
       Section 2176 prohibits the reprogramming of funds in excess 
     of 105 percent of the amount authorized for a program, 
     project, or activity, or in excess of $0.25 million above the 
     amount authorized for the program, program, project, or 
     activity until the Administrator submits a report to the 
     appropriate congressional committees and a period of 30 days 
     has elapsed after the date on which the report is received. 
     Such reprogramming of funds is limited to no more than the 
     total amount authorized to be appropriated by this subtitle 
     and such funds may not be reprogrammed or used for a program, 
     project, or activity for which Congress has not authorized 
     appropriation.
     Sec. 2177. Budget Request Format
       Section 2177 requires the Administrator to provide to the 
     appropriate congressional committees, to be transmitted at 
     the same time as the EPA's annual budget request submission, 
     a detailed justification for budget authorization for the 
     programs, projects, and activities for which funds are 
     authorized by this subtitle.
       Each such document shall include, for the fiscal year for 
     which funding is being requested and for the two previous 
     fiscal years: (1) a description of, and funding requested or 
     allocated for, each such program, project, or activity; (2) 
     an identification of all recipients of funds to conduct such 
     programs, projects, and activities; and (3) an estimate of 
     the amounts to be expended by each recipient of funds under 
     (2).
     Sec. 2178. Other Provisions
       Subsection 2178(a) requires the Administrator to provide 
     simultaneously to the Committee on Science: (1) any annual 
     operating plan or other operational funding document, 
     including any additions or amendments thereto; and (2) any 
     report relating to the environmental research or development, 
     scientific or energy research, development, or demonstration, 
     or commercial application of energy technology programs, 
     projects, or activities of the EPA, provided to any committee 
     of Congress.
       Subsection 2178(b) requires the Administrator to provide 
     notice to the appropriate congressional committees not later 
     than 15 days before any reorganization of any environmental 
     research or development, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity of the Office 
     of Air and Radiation.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

          Subtitle H--National Building Performance Initiative

       Not later than three months after the date of the enactment 
     of this Act, subsection 2181(a) requires the Director of the 
     OSTP to establish an Interagency Group responsible for the 
     development and implementation of a National Building 
     Performance Initiative to address energy conservation and R&D 
     and related issues. The NIST shall provide necessary 
     administrative support for the Interagency Group.
       Under subsection 2181(b), not later than nine months after 
     the date of the enactment of this Act, the Interagency Group 
     shall transmit to the Congress a multiyear implementation 
     plan describing the Federal role in reducing the costs, 
     including energy costs, of using, owning, and operating 
     commercial, institutional, residential, and industrial 
     buildings by 30 percent by 2020. The plan shall include: (1) 
     RD&D of systems and materials for new construction and 
     retrofit, on the building envelope and components; and (2) 
     the collection and dissemination, in a usable form, of 
     research results and other pertinent information to the 
     design and construction industry, government officials, and 
     the general public.
       Subsection 2181(c) requires the establishment of a National 
     Building Performance Advisory Committee to advise on creation 
     of the plan, review progress made under the plan, advise on 
     any improvements that should be made to the plan, and report 
     to the Congress on actions that have been taken to advance 
     the Nation's capability in furtherance of the plan. The 
     members shall include representatives of a broad cross-
     section of interests such as the research, technology 
     transfer, architectural, engineering, and financial 
     communities; materials and systems suppliers; State, county, 
     and local governments; the residential, multi-family, and 
     commercial sectors of the construction industry; and the 
     insurance industry.
       Subsection 2181(d) requires the Interagency Group, within 
     90 days after the end of each fiscal year, to transmit a 
     report to the Congress describing progress achieved during 
     the preceding fiscal year by goverranent at all levels and by 
     the private sector, toward implementing the plan developed 
     under subsection (b), and including any amendments to the 
     plan.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

     Sec. 2201. Short Title
       Section 2201 cites the subtitle as the ``Robert S. Walker 
     and George E. Brown, Jr. Hydrogen Energy Act of 2001.''
     Sec. 2202. Purposes
       Section 2202 amends section 102(b) the Spark M. Matsunaga 
     Hydrogen RD&D Act of 1990 (1990 Act) to include RD&D 
     activities leading to the use of hydrogen for commercial 
     applications, information dissemination and education, and 
     development of a hydrogen production methodology that 
     minimizes adverse environmental impacts, including efficient 
     and cost-effective production from renewable and nonrenewable 
     resources.
     Sec. 2203. Definitions
       Section 2203 amends section 102(c) of the 1990 Act to 
     include the definition of ``advisory committee.''
     Sec. 2204. Reports to Congress
       Section 2204 amends section 103 of the 1990 Act by 
     requiring the Secretary to submit to Congress a detailed 
     report on the status and progress of the programs and 
     activities authorized under the Act within one year of its 
     enactment, and biennially thereafter.
     Sec. 2205. Hydrogen Research and Development
       Section 2205 amends section 104 of the 1990 Act by 
     streamlining the text. Also, for R&D programs carried out 
     under this section, the Secretary shall require a commitment 
     from nonFederal 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 R&D is of a basic or fundamental nature.
     Sec. 2206. Demonstrations
       Section 2206 amends section 105 of the 1990 Act by 
     eliminating the requirement that demonstration of critical 
     technologies and small-scale demonstrations be conducted in 
     or at ``self-contained locations.'' In addition, the small-
     scale demonstrations are to include a fuel cell bus 
     demonstration program to address hydrogen production, 
     storage, and use in transit bus applications.
     Sec. 2207. Technology Transfer
       Section 2207 amends section 106 of the 1990 Act by 
     requiring the Secretary to conduct a hydrogen technology 
     transfer program designed to accelerate wider application of 
     hydrogen production, storage, transportation and use 
     technologies, including application in foreign countries to 
     increase the global market for hydrogen technologies and 
     foster global economic development without harmful 
     environmental effects.
     Sec. 2208. Coordination and Consultation
       Section 2208 amends section 107 of the 1990 Act by 
     requiring the Secretary to establish a central point for 
     coordination of all DOE hydrogen RD&D activities. It also 
     requires the Secretary to consult with other Federal 
     agencies, as appropriate, and the advisory committee 
     established under section 2209.
     Sec. 2209. Advisory Committee
       Section 2209 amends section 108 of the 1990 Act by 
     requiring the Secretary to enter into arrangements with the 
     National Academies of Sciences and Engineering to establish 
     an advisory committee to replace the current Hydrogen 
     Technical Advisory Panel.

[[Page H5032]]

     Sec. 2210. Authorization of Appropriations
       Subsection 2210 amends section 109 of the 1990 Act to 
     provide authorization of appropriations for the five-year 
     period, FY 2002 through FY 2006.
       Subsection 2210(a) authorizes $40.0 million for FY 2002, 
     $45.0 million for FY 2003, $50.0 million for FY 2004, $55.0 
     million for FY 2005, and $60.0 million for FY 2006 for 
     hydrogen R&D activities and the advisory committee.
       Subsection 2210(b) authorizes $20.0 million for FY 2002, 
     $25.0 million for FY 2003, $30.0 million for FY 2004, $35.0 
     million for FY 2005, and $40.0 million for FY 2006 for 
     hydrogen demonstration activities.
     Sec. 2211. Repeal
       Section 2211 amends the Hydrogen Future Act of 1996 to 
     repeal title 11 containing the program relating to the 
     integration of fuel cells with hydrogen production systems.

                       TITLE II--RENEWABLE ENERGY

                         Subtitle B--Bioenergy

     Sec. 2221. Short Title
       Section 2221 cites the subtitle as the ``Bioenergy Act of 
     2001.''
     Sec. 2222. Findings
       Section 2222 lists five findings.
     Sec. 2223. Definitions
       Section 2223 defines the terms ``bioenergy,'' ``biofuels,'' 
     ``biopower,'' and ``integrated bioenergy research and 
     development.''
     Sec. 2224. Authorizations
       Section 2224 authorizes the Secretary to conduct bioenergy-
     related RD&D and commercial application programs, projects, 
     and activities, including: (1) biopower energy systems, (2) 
     biofuels energy systems, and (3) integrated bioenergy R&D.
     Sec. 2225. Authorization of Appropriations
       As shown in the following table, subsections 2225(a), 
     2225(b), and 2225(c) authorize a total of $912.2 million for 
     Biopower Energy Systems, Biofuels Energy Systems, and 
     Integrated Bioenergy R&D for the five-year period, FY 2002 
     through FY 2006.

                                                  BIOENERGY ACT OF 2001 AUTHORIZATIONS: FY 2002-FY 2006
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Total  (FY
                  Program (subsection)                        FY 2002         FY 2003         FY 2004         FY 2005         FY 2006     2002- FY 2006)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Biopower (2225(a))......................................          45,700          52,500          60,300          69,300          79,600         307,400
Biofuels (2225(b))......................................          53,500          61,400          70,600          81,100          93,200         359,800
Integrated Bioenergy R&D (2225(c))......................          49,000          49,000          49,000          49,000          49,000         245,000
                                                         -----------------------------------------------------------------------------------------------
      Total.............................................         148,200         162,900         179,900         199,400         221,800         912,200
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Also, Integrated Bioenergy R&D activities funded under 
     subsection 2225(c) are to be coordinated with ongoing related 
     programs of other Federal agencies, including the NSF Plant 
     Genome Program.
       Subsection 2225(d) authorizes amounts under this subtitle 
     to be used to assist in the planning, design, and 
     implementation of projects to convert rice straw and barley 
     grain into biopower or biofuels.

                       TITLE II--RENEWABLE ENERGY

            Subtitle C--Transmission Infrastructure Systems

     Sec. 2241. Transmission Infrastructure Systems RD&D and 
         Commercial Application
       Subsection 2241(a) requires the Secretary to develop and 
     implement a comprehensive RD&D and commercial application 
     program to ensure the reliability, efficiency, 
     and environmental integrity of electrical transmission 
     systems. Such program shall include advanced energy 
     technologies and systems, high capacity superconducting 
     transmission lines and generators, advanced grid 
     reliability and efficiency technologies development, 
     technologies contributing to significant load reductions, 
     advanced metering, load management and control 
     technologies, and technology transfer and education.
       In carrying out this subtitle, subsection 2241(b) allows 
     the Secretary to include RD&D on and commercial application 
     of improved transmission technologies including the 
     integration of the following technologies into improved 
     transmission systems: (1) high temperature superconductivity; 
     (2) advanced transmission materials; (3) self-adjusting 
     equipment, processes, or software for survivability, 
     security, and failure containment; (4) enhancements of energy 
     transfer over existing lines; and (5) any other 
     infrastructure technologies, as appropriate.
     Sec. 2242. Program Plan
       Section 2242 requires the Secretary, within four months 
     after the date of the enactment of this Act and in 
     consultation with other appropriate Federal agencies, to 
     prepare and transmit to Congress a five-year program plan to 
     guide activities under this subtitle. In preparing the 
     program plan, the Secretary shall consult with appropriate 
     representatives of the transmission infrastructure systems 
     industry to select and prioritize appropriate program areas. 
     The Secretary shall also seek the advice of utilities, energy 
     services providers, manufacturers, institutions of higher 
     learning, other appropriate State and local agencies, 
     environmental organizations, professional and technical 
     societies, and any other persons as the Secretary considers 
     appropriate.
     Sec. 2243. Report
       Under section 2243, two years after the date of the 
     enactment of this Act, and at two year intervals thereafter, 
     the Secretary, in consultation with other appropriate Federal 
     agencies, shall transmit a report to Congress describing the 
     progress made to achieve the purposes of this subtitle and 
     identifying any additional resources needed to continue the 
     development and commercial application of transmission 
     infrastructure technologies.

                       TITLE II--RENEWABLE ENERGY

              Subtitle D--Authorization of Appropriations

     Sec. 2261. Authorization of Appropriations
       Including the amounts authorized for hydrogen R&D under 
     section 2210 and for bioenergy R&D under section 2225, 
     subsection 261(a) authorizes $535.0 million for FY 2002, 
     $639.0 million for FY 2003, and $683.0 million for FY 2004 
     for Renewable Energy operation and maintenance, including 
     subtitle C (Transmission Infrastructure Systems), Geothermal 
     Technology Development, Hydropower, Concentrating Solar 
     Power, Photovoltaic Energy Systems, Solar Building Technology 
     Research, Wind Energy Systems, High Temperature 
     Superconducting Research and Development, Energy Storage 
     Systems, Transmission Reliability, International Renewable 
     Energy Program, Renewable Energy Production Incentive 
     Program, Renewable Program Support, National Renewable Energy 
     Laboratory, and Program Direction, to remain available 
     until expended.
       Subsection 2281(b) requires the Secretary to carry out a 
     research program, in conjunction with other appropriate 
     Federal agencies, on wave powered electric generation within 
     the amounts authorized under subsection 2281(a).
       Using funds authorized in subsection 2281(a), subsection 
     2281(c) requires the Secretary to transmit to the Congress, 
     within one year after the date of the enactment of this Act, 
     an assessment of all renewable energy resources available 
     within the United States. The report shall include a detailed 
     inventory describing the available amount and characteristics 
     of solar, wind, biomass, geothermal, hydroelectric, and other 
     renewable energy sources, and an estimate of the costs needed 
     to develop each resource. The report shall also include such 
     other information as the Secretary believes would be useful 
     in siting renewable energy generation, such as appropriate 
     terrain, population and load centers, nearby energy 
     infrastructure, and location of energy resources. The 
     information and cost estimates in this report shall be 
     updated annually and made available to the public, along with 
     the data used to create the report. This subsection shall 
     expire at the end of FY 2004.
       Subsection 2261(d) provides that none of the funds 
     authorized to be appropriated in subsection 2241(a) may be 
     used for: ``(1) Departmental Energy Management Program; or 
     (2) Renewable Indian Energy Resources.'' These limitations 
     are included to preserve the Science Committee's sole 
     jurisdiction over the bill, since the jurisdiction of these 
     programs either resides with the Committee on Energy and 
     Commerce, or is shared with that Committee.

                       TITLE III--NUCLEAR ENERGY

        Subtitle A--University, Nuclear Science and Engineering

     Sec. 2301. Short Title
       Section 2301 cites the subtitle as the ``Department of 
     Energy University Nuclear Science and Engineering Act.''
     Sec. 2302. Findings
       Section 2302 lists three findings.
     Sec. 2303. Department of Energy Program
       Subsection 2303(a) directs the Secretary, through the 
     Office of Nuclear Energy, Science and Technology (Office) to 
     maintain the Nation's human resource investment and 
     infrastructure related to civilian nuclear R&D.
       Subsection 2303(b) requires the Director of the Office to: 
     (1) develop a robust graduate and undergraduate program to 
     attract new students; (2) develop a Junior Faculty Research 
     Initiation Grant to recruit and maintain new faculty; (3) 
     maintain investment in the Nuclear Engineering Education 
     Research Program; (4) encourage collaborative nuclear 
     research between industry, national labs and universities 
     through Nuclear Energy Research Initiative (NERI); (5) 
     support public outreach regarding nuclear science and 
     engineering; and (6) support communication and outreach 
     related to nuclear science and engineering.
       Subsection 2303(c) directs the Office to provide for: (1) 
     university research reactor refueling with low enriched 
     fuels, operational

[[Page H5033]]

     instrumentation upgrading, and reactor sharing among 
     universities; (2) assistance in relicensing and upgrading 
     university training reactors as part of a student training 
     program in collaboration with the U.S. nuclear industry; and 
     (3) awards for reactor improvements for research, training 
     and education.
       Subsection 2303(d) directs the Secretary to develop a 
     program in the Office for: nuclear science and technology 
     sabbatical fellowships for university professors at the 
     Department labs and for student fellowships at Department 
     labs; and a visiting scientist program for Department lab 
     staff to visit universities' nuclear science programs to work 
     with faculty and staff.
       Subsection 2303(e) requires the host institution to provide 
     at least 50 percent of the cost of a university research 
     reactor's operation when funds authorized under this subtitle 
     are used to supplement operation of such research reactor.
       Subsection 2303(f) requires that all grants, contracts, 
     cooperative agreements or other financial assistance awards 
     under this Act be made based on independent merit review.
       Subsection 2303(g) requires the Secretary to prepare a 
     report within six months of enactment of this Act, laying out 
     a five-year plan on the programs authorized in this section. 
     This report is to be delivered to the appropriate 
     congressional committees.
     Sec. 2304. Authorization of Appropriations
       Subsection 2304(a) authorizes total appropriation of funds 
     to carry out the purposes of this subtitle and for all funds 
     to remain available until expended: $30.2 million for FY 
     2002; $41.0 million for FY 2003; $47.9 million for FY 2004; 
     $55.6 million for FY 2005; and $64.1 million for FY 2006.
       For the Graduate and Undergraduate Fellowships to carry out 
     subsection 2303(b)(1) from the funds authorized in subsection 
     2304(a), subsection 2304(b) authorizes $3.0 million for FY 
     2002, $3.1 million for FY 2003, $3.2 million for FY 2004, 
     $3.2 million for FY 2005, and $3.2 million for FY 2006.
       For the Junior Faculty Research Initiation Grant Program to 
     carry out subsection 2303(b)(2) from the funds authorized in 
     subsection 2304(a), subsection 2304(c) authorizes $5.0 
     million for FY 2002, $7.0 million for FY 2003, $8.0 million 
     for FY 2004, $9.0 million for FY 2005, and $10.0 million for 
     FY 2006.
       For the Nuclear Engineering and Education Research Program 
     to carry out subsection 2303(b)(3) from the funds authorized 
     in subsection 2304(a), subsection 2304(d) authorizes $8.0 
     million for FY 2002, $12.0 million for FY 2003, $13.0 million 
     for FY 2004, $15.0 million for FY 2005, and $20.0 million for 
     FY 2006.
       For Communication and Outreach Related to Nuclear Science 
     and Engineering to carry out subsection 2303(b)(5) from the 
     funds authorized in subsection 2304(a), subsection 2304(e) 
     authorizes $0.2 million for each of FY 2002 and FY 2003, and 
     $0.3 million for each of FY 2004 through FY 2006.
       For Refueling of Research Reactors and Instrumentation 
     Upgrades to carry out subsection 2303(c)(1) from the funds 
     authorized in subsection 2304(a), subsection 2304(f) 
     authorizes $6.0 million for FY 2002, $6.5 million for FY 
     2003, $7.0 million for FY 2004, $7.5 million for FY 2005, and 
     $8.0 million for FY 2006.
       For Relicensing Assistance to carry out subsection 
     2303(c)(2) from the funds authorized in subsection 2304(a), 
     subsection 2304(g) authorizes $1.0 million for FY 2002, $1.1 
     million for FY 2003, $1.2 million for FY 2004, and $1.3 
     million for each of FY 2005 and FY 2006.
       For the Reactor Research and Training Award Program to 
     carry out subsection 2303(c)(3) from the funds authorized in 
     subsection 2304(a), subsection 2304(h) authorizes $6.0 
     million for FY 2002, $10.0 million for FY 2003, $14.0 million 
     for FY 2004, $18.0 million for FY 2005, and $20.0 million for 
     FY 2006.
       For University-Department Laboratory Interactions to carry 
     out subsection 2303(d) from the funds authorized in 
     subsection 2304(a), subsection 2304(i) authorizes $1.0 
     million for FY 2002, $1.1 million for FY 2003, $1.2 million 
     for FY 2004, and $1.3 million for each of FY 2005 and FY 
     2006.

                       TITLE III--NUCLEAR ENERGY

Subtitle B--Advanced Fuel Recycling Technology Research and Development 
                                Program

     Sec. 2321. Program
       Section 2321(a) requires the Secretary, through the 
     Director of the Office, to conduct an advanced fuel recycling 
     technology R&D program to further the availability of 
     proliferation resistant fuel recycling technologies as an 
     alternative to aqueous reprocessing in support of evaluation 
     of alternative national strategies for spent nuclear fuel and 
     the Generation IV advanced reactor concepts, subject to 
     annual review by the Secretary's Nuclear Energy Research 
     Advisory Committee or other independent entity, as 
     appropriate.
       Section 2321(b) requires the Secretary to report on the 
     activities of the advanced fuel recycling technology R&D 
     program as part of the Department's annual budget submission.
       Section 2321(c) authorizes: (1) $10.0 million for FY 2002, 
     and (2) such sums as are necessary for FY 2003 and FY 2004.

                       TITLE III--NUCLEAR ENERGY

    Subtitle C--Department of Energy Authorization of Appropriations

     Sec. 2341. Nuclear Energy Research Initiative
       Subsection 2341(a) requires the Secretary, through the 
     Office, to conduct a Nuclear Energy Research Initiative for 
     grants to be competitively awarded and subject to peer review 
     for research relating to nuclear energy.
       Subsection 2341(b) mandates that the program be directed 
     toward accomplishing the objectives of: (1) developing 
     advanced concepts and scientific breakthroughs in nuclear 
     fission and reactor technology to address and overcome the 
     principal technical and scientific obstacles to the expanded 
     use of nuclear energy in the United States; (2) advancing the 
     state of nuclear technology to maintain a competitive 
     position in foreign markets and a future domestic market; (3) 
     promoting and maintaining a United States nuclear science and 
     engineering infrastructure to meet future technical 
     challenges; (4) providing an effective means to collaborate 
     on a cost-shared basis with international agencies and 
     research organizations to address and influence nuclear 
     technology development worldwide; and (5) promoting United 
     States leadership and partnerships in bilateral and 
     multilateral nuclear energy research.
       Subsection 2341(c) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $60.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2342. Nuclear Energy Plant Optimization Program
       Subsection 2342(a) requires the Secretary to conduct a 
     Nuclear Energy Plant Optimization R&D program jointly with 
     industry and cost-shared by industry by at least 50 percent 
     and subject to annual review by the Secretary's Nuclear 
     Energy Research Advisory Committee or other independent 
     entity, as appropriate.
       Subsection 2342(b) states the program shall be directed 
     toward accomplishing the following technical objectives: (1) 
     managing long-term effects of component aging; and (2) 
     improving efficiency and productivity of existing nuclear 
     power stations.
       Subsection 2342(c) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $15.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2343. Nuclear Energy Technologies
       Subsection 2343(a) requires the Secretary to conduct a 
     study of Generation IV nuclear energy systems, including 
     development of a technology roadmap and performance of R&D 
     necessary to make an informed technical decision regarding 
     the most promising candidates for commercial application.
       Under subsection 2343(b), to the extent practicable, in 
     conducting the study under subsection 2343(a), the Secretary 
     shall study nuclear energy systems that offer the highest 
     probability of achieving the goals for Generation IV nuclear 
     energy systems, including: (1) economics competitive with any 
     other generators; (2) enhanced safety features, including 
     passive safety features; (3) substantially reduced production 
     of high-level waste, as compared with the quantity of waste 
     produced by reactors in operation on the date of enactment of 
     this Act; (4) highly proliferation-resistant fuel and waste; 
     (5) sustainable energy generation including optimized fuel 
     utilization; and (6) substantially improved thermal 
     efficiency, as compared with the thermal efficiency of 
     reactors in operation on the date of enactment of this Act.
       In preparing the study under subsection 2343(b), subsection 
     2343(c) requires the Secretary to consult with appropriate 
     representatives of industry, institutions of higher 
     education, Federal agencies, and international, professional 
     and technical organizations.
       Subsection 2343(d) requires that, not later than December 
     31, 2002, the Secretary shall transmit to the appropriate 
     congressional committees a report describing the activities 
     of the Secretary under this section, and plans for R&D 
     leading to a public/private cooperative demonstration of one 
     or more Generation IV nuclear energy systems. The report 
     shall contain: (A) an assessment of all available 
     technologies; (B) a summary of actions needed for the most 
     promising candidates to be considered as viable commercial 
     options within the five to ten years after the date of the 
     report, with consideration of regulatory, economic, and 
     technical issues; (C) a recommendation of not more than three 
     promising Generation IV nuclear energy system concepts for 
     further development; (D) an evaluation of opportunities for 
     public/private partnerships; (E) a recommendation for the 
     structure of a public/private partnership to share in 
     development and construction costs; (F) a plan leading to the 
     selection and conceptual design, by September 30, 2004, of at 
     least one Generation IV nuclear energy system concept 
     recommended under subparagraph (C) for demonstration through 
     a public/private partnership; (G) an evaluation of 
     opportunities for siting demonstration facilities on DOE 
     land; and (H) a recommendation for appropriate involvement 
     of other Federal agencies.
       Subsection 2343(e) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $20.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2344. Authorization of Appropriations
       Subsection 2344(a) authorizes activities under this title 
     for nuclear energy operation

[[Page H5034]]

     and maintenance, including amounts authorized under sections 
     2304(a) (University Nuclear Science and Engineering), 2321(c) 
     (Advanced Fuel Recycling Technology R&D Program), 2341(c) 
     (Nuclear Energy Research Initiative), 2342(c) (Nuclear Energy 
     Plant Optimization Program), and 2343(e) (Nuclear Energy 
     Technologies), and including Advanced Radioisotope Power 
     Systems, Test Reactor Landlord, and Program Direction, $191.2 
     million for FY 2002, $199.0 million for FY 2003, and $207.0 
     million for FY 2004, to remain available until expended.
       Subsection 2344(b) authorizes:
       (1) $0.95 million for FY 2002, $2.2 million for FY 2003, 
     $1.246 million for FY 2004, and $1.699 million for FY 2005 
     for completion of construction of Project 99-E-200, Test 
     Reactor Area (TRA) Electric Utility Upgrade, Idaho National 
     Engineering and Environmental Laboratory (INEEL); and
       (2) $0.5 million for each of FY 2002 through FY 2005 for 
     completion of construction of Project 95-E-201, TRA Fire and 
     Life Safety Improvements, INEEL.
       Subsection 2344(c) provides that none of the funds 
     authorized to be appropriated in subsection 2481(a) may be 
     used for: ``(1) Nuclear Energy Isotope Support and 
     Production; (2) Argonne National Laboratory-West Operations; 
     (3) Fast Flux Test Facility; or (4) Nuclear Facilities 
     Management.'' These limitations are included to preserve the 
     Science Committee's sole jurisdiction over the bill since the 
     jurisdiction of programs under this subsection either resides 
     with the Committee on Energy and Commerce or is shared with 
     that Committee.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

     Sec. 2401. Coal and Related Technologies Programs
       Subsection 2401(a) authorizes to be appropriated to the 
     Secretary $172.0 million for FY 2002, $179.0 million for FY 
     2003, and $186.0 million for FY 2004, to remain available 
     until expended, for other coal and related technologies 
     programs, which shall include: (1) Innovations for Existing 
     Plants; (2) Integrated Gasification Combined Cycle; (3) 
     advanced combustion systems; (4) Turbines; (5) Sequestration 
     Research and Development; (6) innovative technologies for 
     demonstration; (7) Transportation Fuels and Chemicals; (8) 
     Solid Fuels and Feedstocks; (9) Advanced Fuels Research; and 
     (10) Advanced Research.
       Notwithstanding subsection 2401(a), subsection 2405(b) 
     prohibits the use of funds to carry out the activities 
     authorized by this subtitle after September 30, 2002, unless 
     the Secretary has transmitted to the appropriate 
     congressional committees the report required by this 
     subsection and one month have elapsed since that 
     transmission. The report must include a plan containing: (1) 
     a detailed description of how proposals will be solicited and 
     evaluated, including a list of all activities expected to be 
     undertaken; (2) a detailed list of technical milestones for 
     each coal and related technology that will be pursued; and 
     (3) a description of how the programs authorized in this 
     section will be carried out so as to complement and not 
     duplicate activities authorized under division E (Clean 
     Coal Power Initiative).

                        TITLE IV--FOSSIL ENERGY

                        Subtitle B--Oil and Gas

     Sec. 2421. Petroleum-Oil Technology
       Section 2421 directs the Secretary to conduct a RD&D and 
     commercial application program on petroleum-oil technology. 
     The programs shall address: (1) Exploration and Production 
     Supporting Research; (2) Oil Technology Reservoir Management/
     Extension; and (3) Effective Environmental Protection.
     Sec. 2422. Gas
       Section 2422 directs the Secretary to conduct a program of 
     RD&D and commercial application on natural gas technologies. 
     The program shall address: (1) Exploration and Production; 
     (2) Infrastructure; and (3) Effective Environmental 
     Protection.

                        TITLE IV--FOSSIL ENERGY

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

     Sec. 2441. Short Title
       Section 2441 cites the subtitle as the ``Natural Gas and 
     Other Petroleum Research, Development, and Demonstration Act 
     of 2001.''
     Sec. 2442. Definitions
       Section 2442 defines six terms, including the terms 
     ``deepwater'' to mean water depths greater than 200 meters 
     but less than 1,500 meters, ``ultra-deepwater'' to mean water 
     depths greater than 1,500 meters, and ``unconventional'' to 
     mean located in heretofore inaccessible or uneconomic 
     formations on land.
     Sec. 2443. Ultra-Deepwater Program
       Section 2443 requires the Secretary to establish a program 
     of RD&D of ultra-deepwater natural gas and other petroleum 
     exploration and production technologies, in areas currently 
     available for Outer Continental Shelf leasing. The program 
     shall be carried out by the Research Organization as provided 
     in this subtitle.
     Sec. 2444. National Energy Technology Laboratory
       The National Energy Technology Laboratory (NETL) and the 
     U.S. Geological Survey (USGS), when appropriate, shall carry 
     out programs of long-term research into new natural gas and 
     other petroleum exploration and production technologies 
     and environmental mitigation technologies for production 
     from unconventional and ultra-deepwater resources, 
     including methane hydrates. NETL shall conduct a program 
     of RD&D of new technologies for the reduction of 
     greenhouse gas emissions from unconventional and ultra-
     deepwater natural gas or other petroleum exploration and 
     production activities, including sub-sea floor carbon 
     sequestration technologies.
     Sec. 2445. Advisory Committee
       Within six months after the date of the enactment of this 
     Act, subsection 2445(a) requires the Secretary to establish 
     an Advisory Committee consisting of seven members, each 
     having extensive operational knowledge of and experience in 
     the natural gas and other petroleum exploration and 
     production industry who are not Federal Government employees 
     or contractors. A minimum of four members shall have 
     extensive knowledge of ultra-deepwater natural gas or other 
     petroleum exploration and production technologies, a minimum 
     of two members shall have extensive knowledge of 
     unconventional natural gas or other petroleum exploration and 
     production technologies, and at least one member shall have 
     extensive knowledge of greenhouse gas emission reduction 
     technologies, including carbon sequestration.
       Subsection 2445(b) defines the function of the Advisory 
     Committee to be to advise the Secretary on the selection of 
     an organization to create the Research Organization and on 
     the implementation of this subtitle.
       Under subsection 2445(c), members of the Advisory Committee 
     shall serve without compensation but shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with applicable provisions under subchapter I of 
     chapter 57 of title 5, United States Code.
       Subsection 2445(d) provides that the costs of activities 
     carried out by the Secretary and the Advisory Committee under 
     this subtitle shall be paid or reimbursed from the Fund 
     established in section 2450.
       Under subsection 2455(e), Section 14 of the Federal 
     Advisory Committee Act shall not apply to the Advisory 
     Committee.
     See. 2446. Research Organization
       Subsection 2446(a) requires the Secretary, within six 
     months after the date of the enactment of this Act, to 
     solicit proposals from eligible entities for the creation of 
     the Research Organization, and within three months after such 
     solicitation, to select an entity to create the Research 
     Organization.
       Under subsection 2446(b), entities eligible to create the 
     Research Organization shall: (1) have been in existence as of 
     the date of the enactment of this Act; (2) be entities exempt 
     from tax under section 501(c)(3) of the Internal Revenue Code 
     of 1986; and (3) be experienced in planning and managing 
     programs in natural gas or other petroleum exploration and 
     production RD&D.
       Subsection 24246(c) requires that a proposal from an entity 
     seeking to create the Research Organization shall include a 
     detailed description of the proposed membership and structure 
     of the Research Organization.
       The functions of the Research Organization, as defined in 
     subsection 2446(c) are to: (1) award grants on a competitive 
     basis to qualified research institutions, institutions of 
     higher education, companies, and consortia of same for the 
     purpose of conducting RD&D of unconventional and ultra-
     deepwater natural gas or other petroleum exploration and 
     production technologies; and (2) review activities under 
     those grants to ensure that they comply with the requirements 
     of this subtitle and serve the purposes for which the grants 
     were made.
     Sec. 2447. Grants
       Subsection 2447(a) provides for three types of grants: (1) 
     unconventional, for RD&D of technologies aimed at 
     unconventional reservoirs; (2) ultra-deepwater, for R&D of 
     technologies aimed at ultra-deepwater areas; and (3) ultra-
     deepwater architecture. In the case of ultradeepwater 
     architecture, the Research Organization shall award a grant 
     to one or more consortia for the purpose of developing and 
     demonstrating the next generation architecture for 
     ultradeepwater production of natural gas and other petroleum.
       Subsection 2447(b) provides that grants under this section 
     shall contain seven specific conditions:
       1. If the grant recipient consists of more than one entity, 
     the recipient shall provide a signed contract agreed to by 
     all participating members clearly defining all rights to 
     intellectual property for existing technology and for future 
     inventions conceived and developed using funds provided under 
     the grant, in a manner that is consistent with applicable 
     laws.
       2. There shall be a repayment schedule for Federal dollars 
     provided for demonstration projects under the grant in the 
     event of a successful commercialization of the demonstrated 
     technology. Such repayment schedule shall provide that the 
     payments are made to the Secretary with the express intent 
     that these payments not impede the adoption of the 
     demonstrated technology in the marketplace. In the event that 
     such impedance occurs due to market forces or other factors, 
     the Research Organization shall renegotiate the grant 
     agreement so that the acceptance of the technology in the 
     marketplace is enabled.
       3. Applications for grants for demonstration projects shall 
     clearly state the intended commercial applications of the 
     technology demonstrated.
       4. The total amount of funds made available under a grant 
     provided under subsection

[[Page H5035]]

     2447(a)(3) for ultra-deepwater architecture shall not exceed 
     50 percent of the total cost of the activities for which the 
     grant is provided.
       5. The total amount of funds made available under a grant 
     provided either under subsection 2447(a)(1) for 
     unconventional reservoirs or under subsection 2447(a)(2) for 
     ultradeepwater areas shall not exceed 50 percent of the total 
     cost of the activities covered by the grant, except that the 
     Research Organization may elect to provide grants covering a 
     higher percentage, not to exceed 90 percent, of total project 
     costs in the case of grants made solely to independent 
     producers.
       6. An appropriate amount of funds provided under a grant 
     shall be used for the broad dissemination of technologies 
     developed under the grant to interested institutions of 
     higher education, industry, and appropriate Federal and State 
     technology entities to ensure the greatest possible benefits 
     for the public and use of government resources.
       7. Demonstrations of ultra-deepwater technologies for which 
     funds are provided under a grant may be conducted in ultra-
     deepwater or deepwater locations.
       Subsection 2447(c) requires that funds available for grants 
     under this subtitle be allocated as follows: (1) 15 percent 
     shall be for grants under subsection 2447(a)(1) for 
     unconventional reservoirs; (2) 15 percent shall be for grants 
     under subsection 2447(a)(2) for ultra-deepwater areas; (3) 60 
     percent shall be for grants under subsection 2447(a)(3) for 
     ultra-deepwater architecture; and (4) 10 percent shall be for 
     the NETL and the USGS, when appropriate, for carrying out 
     section 2444.
     Sec. 2448. Plan and Funding
       Subsection 2448(a) requires the Research Organization to 
     transmit to the Secretary an annual plan proposing projects 
     and funding of activities under each paragraph of section 
     2447(a).
       Under subsection 2448(b), the Secretary shall have one 
     month to review the annual plan, and shall approve the plan, 
     if it is consistent with this subtitle. If the Secretary 
     approves the plan, the Secretary shall provide funding as 
     proposed in the plan. If the Secretary does not approve the 
     plan, subsection 2448(c) provides that the Secretary shall 
     notify the Research Organization of the reasons for 
     disapproval and shall withhold funding until a new plan is 
     submitted which the Secretary approves, Within one month 
     after notifying the Research Organization of a disapproval, 
     the Secretary shall notify the appropriate congressional 
     committees of the disapproval.
     Sec. 2449. Audit
       Section 2449 requires the Secretary to retain an 
     independent, commercial auditor to determine the extent to 
     which the funds authorized by this subtitle have been 
     expended in a manner consistent with the purposes of this 
     subtitle. The auditor must transmit a report annually to the 
     Secretary, who shall transmit the report to the appropriate 
     congressional committees, along with a plan to remedy any 
     deficiencies cited in the report.
     Sec. 2450. Fund
       Subsection 2450(a) establishes a fund to be known as the 
     ``Ultra-Deepwater and Unconventional Gas Research Fund'' 
     (Fund) in the United States Treasury (Treasury), which shall 
     be available for obligation to the extent provided in advance 
     in appropriations Acts for allocation under section 2447(c) 
     above.
       Subsection 2450(b) specifies the Fund's three funding 
     sources:
       1 . Loans from the Treasury--Subsection 2450(b)(1) 
     authorizes to be appropriated to the Secretary $900.0 million 
     for the period encompassing FY 2002 through FY 2009. Such 
     amounts shall be deposited by the Secretary in the Fund, and 
     shall be considered loans from the Treasury. Income received 
     by the United States in connection with any ultra-deepwater 
     oil and gas leases shall be deposited in the Treasury and 
     considered as repayment for the loans under this paragraph.
       2. Additional Appropriations--Subsection 2450(b)(2) 
     authorizes to be appropriated to the Secretary such sums as 
     may be necessary for FY 2002 through FY 2009, to be deposited 
     in the Fund.
       3. Oil and Gas Lease Income--To the extent provided in 
     advance in appropriations Acts, not more than 7.5 percent of 
     the income of the United States from Federal oil and 
     gas leases may be deposited in the Fund for FY 2002 
     through FY 2009. The Congressional Budget Office estimates 
     these amounts to total $3.616 billion.
     Sec. 2451. Sunset
       Under section 2451, no funds are authorized to be 
     appropriated for carrying out this subtitle after FY 2009, 
     and the Research Organization is terminated when it has 
     expended all funds made available pursuant to this subtitle.

                        TITLE IV--FOSSIL ENERGY

                         Subtitle D--Fuel Cells

     Sec. 2461. Fuel Cells
       Section 2461(a) requires the Secretary to conduct a program 
     of research, development, RD&D and commercial application on 
     fuel cells. The program shall address: (1) Advanced Research; 
     (2) Systems Development; (3) Vision 21-Hybrids; and (4) 
     Innovative Concepts.
       In addition to the program under subsection 2461(a), 
     subsection 2461(b) requires the Secretary, in consultation 
     other Federal agencies, as appropriate, to establish a 
     program for the demonstration of fuel cell technologies, 
     including fuel cell proton exchange membrane technology, for 
     commercial, residential, and transportation applications. The 
     program shall specifically focus on promoting the application 
     of and improved manufacturing production and processes for 
     fuel cell technologies.
       Under subsection 2461(c), within the amounts authorized to 
     be appropriated under subsection 2481(a), there are 
     authorized to be appropriated to the Secretary for the 
     purpose of carrying out subsection 2461 (b) $28.0 million for 
     each of FY 2002, 2003, and 2004.

                        TITLE IV--FOSSIL ENERGY

            Subtitle E--DOE Authorization of Appropriations

     Sec. 2481. Authorization of appropriations
       Subsection 2481 (a) authorizes appropriations for subtitle 
     B (Oil and Gas) and subtitle D (Fuel Cells), and for Fossil 
     Energy Research and Development Headquarters Program 
     Direction, Field Program Direction, Plant and Capital 
     Equipment, Cooperative Research and Development, Import/
     Export Authorization, and Advanced Metallurgical Processes 
     $282.0 million for FY 2002, $293.0 million for FY 2003, and 
     $305.0 million for FY 2004.
       Subsection 2481(b) provides that none of the funds 
     authorized to be appropriated in subsection 2481(a) may be 
     used for: ``(1) Gas Hydrates; (2) Fossil Energy Environmental 
     Restoration; or (3) RD&D and commercial application on coal 
     and related technologies, including activities under subtitle 
     A.'' The first limitation is imposed because the Methane 
     Hydrate Act of 2000 has been recently enacted and has its own 
     separate authorization. The second limitation is included to 
     preserve the Science Committee's sole jurisdiction over the 
     bill, since the jurisdiction of Fossil Energy Environmental 
     Restoration is shared with the Committee on Energy and 
     Commerce. The third limitation is imposed to limit the amount 
     of coal funding to that contained in subtitle A.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

     Sec. 2501. Short Title
       Section 2501 cites the subtitle as the ``Fusion Energy 
     Sciences Act of 2001.''
     Sec. 2502. Findings
       Section 2502 lists nine findings.
     Sec. 2503. Plan for Fusion Experiment
       Subsection 2503(a) requires the Secretary, in full 
     consultation with the Fusion Energy Sciences Advisory 
     Committee and the Secretary of Energy Advisory Board as 
     appropriate, to develop a plan for construction in the United 
     States of a magnetic fusion burning plasma experiment for the 
     purpose of accelerating scientific understanding of fusion 
     plasmas. The Secretary shall request a review of the plan by 
     the National Academy of Sciences (NAS), and shall transmit 
     the Department plan and the NAS review to the Congress by 
     July 1, 2004.
       Subsection 2503(b) requires the plan to: (1) address key 
     burning plasma physics issues; and (2) include specific 
     information on the scientific capabilities of the proposed 
     experiment, the relevance of these capabilities to the goal 
     of practical fusion energy, and the overall design of the 
     experiment including its estimated cost and identifying 
     potential construction sites.
       Subsection 2503(c) authorizes the Secretary, in full 
     consultation with the Fusion Energy Sciences Advisory 
     Committee and the Secretary of Energy Advisory Board as 
     appropriate, to develop a plan for the United States 
     participation in an international burning plasma experiment 
     for the purpose of accelerating scientific understanding of 
     fusion plasmas, whose construction is found by the Secretary 
     to be highly likely and where the United States participation 
     is cost effective relative to the cost and scientific 
     benefits of a domestic experiment described in subsection 
     2503(a). If the Secretary elects to develop a plan under this 
     subsection, the Secretary shall include the information 
     described in subsection 2503(b), and an estimate of the cost 
     of United States participation in such an international 
     experiment. The Secretary shall request a review by the NAS 
     of any such plan, shall transmit the plan and the review to 
     the Congress by July 1, 2004.
       Subsection 2503(d) authorizes the Secretary, through the 
     Department's Fusion Energy Sciences Program, to conduct any 
     R&D necessary to fully develop the plans described in this 
     section.
     Sec. 2504. Plan for Fusion Energy Sciences Program
       Section 2504 requires that within six months after the 
     enactment of this Act, the Secretary, in full consultation 
     with the Fusion Energy Sciences Advisory Committee, to 
     develop and transmit to the Congress a plan for the purpose 
     of ensuring a strong scientific base for the Fusion Energy 
     Sciences Program and to enable the burning plasma experiment 
     described in section 2503. Such plan shall ensure: (1) that 
     existing fusion research facilities and equipment are more 
     fully utilized with appropriate measurements and control 
     tools; (2) a strengthened fusion science theory and 
     computational base; (3) that the selection of and funding 
     for new magnetic and inertial fusion research facilities 
     is based on scientific innovation and cost effectiveness; 
     (4) improvement in the communication of scientific results 
     and methods between the fusion science community and the 
     wider scientific community; (5)

[[Page H5036]]

     that adequate support is provided to optimize the design 
     of the magnetic fusion burning plasma experiment referred 
     to in section 2503; (6) that inertial confinement fusion 
     facilities are utilized to the extent practicable for the 
     purpose of inertial fusion energy R&D (7) the development 
     of a roadmap for a fusion-based energy source that shows 
     the important scientific questions, the evolution of 
     confinement configurations, the relation between these two 
     features, and their relation to the fusion energy goal; 
     (8) the establishment of several new centers of 
     excellence, selected through a competitive peer-review 
     process and devoted to exploring the frontiers of fusion 
     science; (9) that the NSF, and other agencies, as 
     appropriate, play a role in extending the reach of fusion 
     science and in sponsoring general plasma science; and (10) 
     that there be continuing broad assessments of the outlook 
     for fusion energy and periodic external reviews of fusion 
     energy sciences.
     Sec. 2505. Authorization of Appropriations
       Section 2505 authorizes--for ongoing activities in 
     Department's Fusion Energy Sciences Program and for the 
     purpose of planning activities under section 2503, but not 
     for implementation of such plans--$320.0 million for FY 2002 
     and $335.0 million for FY 2003 of which up to $15 million for 
     each of FY 2002 and FY 2003 may be used to establish several 
     new centers of excellence under section 2504(8).

                            TITLE V--SCIENCE

                 Subtitle B--Spallation Neutron Source

     Sec. 2521. Definition
       Section 2521 defines the term ``Spallation Neutron Source'' 
     to mean Department Project 99E-334, Oak Ridge National 
     Laboratory, Oak Ridge, Tennessee.
     Sec. 2522. Authorization of Appropriations
       Subsection 2522(a) authorizes to be appropriated to the 
     Secretary for construction of the Spallation Neutron Source 
     (SNS): (1) $276.3 million for FY 2002, (2) $210.571 million 
     for FY 2003, (3) S 124.6 million for FY 2004, (4) $79.8 
     million for FY 2005, and (5) $41.1 million for FY 2006 for 
     completion of construction.
       Subsection 2522(b) authorizes appropriation for other SNS 
     project costs (including R&D necessary to complete the 
     project, preoperations costs, and capital equipment not 
     related to construction) $15.353 million for FY 2002 and 
     $103.279 million for FY 2003 through 2006, to remain 
     available until expended through September 30, 2006.
     Sec. 2523. Report
       Section 2523 requires the Secretary to report on the SNS as 
     part of Department's annual budget submission, including a 
     description of the achievement of milestones, a comparison of 
     actual costs to estimated costs, and any changes in estimated 
     project costs or schedule.
     Sec. 2524. Limitations
       Section 2524 limits the total amount obligated for the SNS 
     by the Department, including prior year appropriations, to 
     not more than: (1) S1,192.7 million for costs of 
     construction; (2) $219.0 million for other project costs; and 
     (3) $1,411.7 million for total project cost.

                            TITLE V--SCIENCE

      Subtitle C--Facilities, Infrastructure, and User Facilities

     Sec. 2541. Definition
       Subsection 2541(l) defines the term ``nonmilitary energy 
     laboratory'' to mean: (A) Ames Laboratory; (B) Argonne 
     National Laboratory; (C) Brookhaven National Laboratory; (D) 
     Fermi National Accelerator Laboratory; (E) Lawrence Berkeley 
     National Laboratory; (F) Oak Ridge National Laboratory; (G) 
     Pacific Northwest National Laboratory; (H) Princeton Plasma 
     Physics Laboratory; (1) Stanford Linear Accelerator Center; 
     (J) Thomas Jefferson National Accelerator Facility; or (K) 
     any other facility of the Department that the Secretary, in 
     consultation with the Director, Office of Science and the 
     appropriate congressional committees, determines to be 
     consistent with the mission of the Office of Science.
       Subsection 2541(2) defines the term ``user facility'' to 
     mean: (A) an Office of Science facility at a non-military 
     energy laboratory that provides special scientific and 
     research capabilities, including technical expertise and 
     support as appropriate, to serve the research needs of the 
     Nation's universities, industry, private laboratories, 
     Federal laboratories, and others, including research 
     institutions or individuals from other nations where 
     reciprocal accommodations are provided to United States 
     research institutions and individuals or where the Secretary 
     considers such accommodation to be in the national interest; 
     and (B) any other Office of Science funded facility 
     designated by the Secretary as a user facility.
     Sec. 2542. Facility and Infrastructure Support for 
         Nonmilitary Energy Laboratories
       Subsection 2542(a) requires the Secretary to develop and 
     implement a least-cost nonmilitary energy laboratory facility 
     and infrastructure strategy for: (1) maintaining existing 
     facilities and infrastructure, as needed; (2) closing 
     unneeded facilities; (3) making facility modifications; and 
     (4) building new facilities.
       Subsection 2542(b) requires the Secretary to prepare a 
     comprehensive ten-year plan for conducting future facility 
     maintenance, making repairs, modifications, and new 
     additions, and constructing new facilities at each 
     nonmilitary energy laboratory. Such plan is to provide for 
     facilities work in accordance with the following priorities: 
     (1) providing for the safety and health of employees, 
     visitors, and the general public with regard to correcting 
     existing structural, mechanical, electrical, and 
     environmental deficiencies; (2) providing for the repair 
     and rehabilitation of existing facilities to keep them in 
     use and prevent deterioration, if feasible; and (3) 
     providing engineering design and construction services for 
     those facilities that require modification or additions in 
     order to meet the needs of new or expanded programs.
       Subsection 2542(c) requires the Secretary to prepare and 
     transmit to the appropriate congressional committees a report 
     containing the plan prepared under subsection 2542(b) within 
     one year after the date of the enactment of this Act. For 
     each nonmilitary energy laboratory, the report is to contain: 
     (1) the current priority list of proposed facilities and 
     infrastructure projects, including cost and schedule 
     requirements; (2) a current ten-year plan that demonstrates 
     the reconfiguration of its facilities and infrastructure to 
     meet its missions and to address its long-term operational 
     costs and return on investment; (3) the total current budget 
     for all facilities and infrastructure funding; and (4) the 
     current status of each facilities and infrastructure project 
     compared to the original baseline cost, schedule, and scope.
       The report shall also: (1) include a plan for new 
     facilities and facility modifications at each nonmilitary 
     energy laboratory that will be required to meet the 
     Department's changing missions for the twenty-first century, 
     including schedules and estimates for implementation, and 
     including a section outlining long-term funding requirements 
     consistent with anticipated budgets and annual authorization 
     of appropriations; (2) address the coordination of 
     modernization and consolidation of facilities among the 
     nonmilitary energy laboratories in order to meet changing 
     mission requirements; and (3) provide for annual reports to 
     the appropriate congressional committees on accomplishments, 
     conformance to schedules, commitments, and expenditures.
     Sec. 2543. User Facilities
       Under subsection 2543(a), when the Department makes a user 
     facility available to universities and other potential users, 
     or seeks input from universities and other potential users 
     regarding significant characteristics or equipment in a user 
     facility or a proposed user facility, the Department shall 
     ensure broad public notice of such availability or such need 
     for input to universities and other potential users.
       Subsection 2543(b) requires the Department to employ full 
     and open competition in selecting participants when the 
     Department considers the participation of a university or 
     other potential user in the establishment or operation of a 
     user facility.
       Section 2543(c) prohibits the Department from redesignating 
     a user facility, as defined by section 2541 (b) as something 
     other than a user facility to avoid the requirements of 
     subsections (a) and (b).

                            TITLE V--SCIENCE

            Subtitle D--Advisory Panel on Office of Science

     Sec. 2561. Establishment
       Section 2561 requires the Director of the Office of Science 
     and Technology Policy, in consultation with the Secretary, to 
     establish an Advisory Panel on the Office of Science 
     comprised of knowledgeable individuals to: (1) address 
     concerns about the current status and the future of 
     scientific research supported by the Office; (2) examine 
     alternatives to the current organizational structure of the 
     Office within the Department, taking into consideration 
     existing structures for the support of scientific research in 
     other Federal agencies and the private sector; and (3) 
     suggest actions to strengthen the scientific research 
     supported by the Office that might be taken jointly by the 
     Department and Congress.
     Sec. 2562. Report
       Under section 2562, within six months after the date of the 
     enactment of this Act, the Advisory Panel shall transmit its 
     findings and recommendations in a report to the Director of 
     the Office of Science and Technology Policy and the 
     Secretary. The Director and the Secretary shall jointly: (1) 
     consider each of the Panel's findings and recommendations, 
     and comment on each as they consider appropriate; and (2) 
     transmit the Panel's report and the comments of the Director 
     and the Secretary on the report to the appropriate 
     congressional committees within nine months after the date of 
     the enactment of this Act.

                            TITLE V--SCIENCE

    Suhtitle E--Department of Energy Authorization of Appropriations

     Sec. 2581. Authorization of appropriations
       Including the amounts authorized to be appropriated for FY 
     2002 under section 2505 for Fusion Energy Sciences and under 
     subsection 2522(b) for the SNS, subsection 2581(a) authorizes 
     to be appropriated to the Secretary for the Office of Science 
     (also including subtitle C--Facilities, Infrastructure, and 
     User Facilities, High Energy Physics, Nuclear Physics, 
     Biological and Environmental Research, Basic Energy Sciences 
     (except for the SNS authorization under subsection 2522(b)), 
     Advanced Scientific Computing Research, Energy Research 
     Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Facilities and Infrastructure, Safeguards and 
     Security, and Program Direction) operation and maintenance 
     $3,299.558

[[Page H5037]]

     million for FY year 2002, to remain available until expended.
       Subsection 2581(b) provides that within the amounts 
     authorized under subsection (a), $5.0 million for FY 2002 may 
     be used to carry out research in the use of precious metals 
     (excluding platinum, palladium, and rhodium) in catalysis, 
     either directly though national laboratories, or through the 
     award of grants, cooperative agreements, or contracts with 
     public or nonprofit entities.
       Subsection 2581(c) provides that in addition to the amounts 
     authorized under subsection 2522(a) for SNS construction, 
     subsection 2581 (b) authorizes:
       (1) $11.4 million for FY 2002 for completion of 
     construction of Project 98-G-304, Neutrinos at the Main 
     Injector, Fermi National Accelerator Laboratory;
       (2) $11.405 million for FY 2002 for completion of 
     construction of Project 01-E-300, Laboratory for Comparative 
     and Functional Genomics, Oak Ridge National Laboratory;
       (3) $4.0 million for FY 2002, $8.0 million for FY 2003, and 
     $2.0 million for FY 2004 for completion of construction of 
     Project 02-SC-002, Project Engineering Design (PED), Various 
     Locations;
       (4) $3.183 million for FY 2002 for completion of 
     construction of Project 02-SC-002, Multiprogram Energy 
     Laboratories Infrastructure Project Engineer-ing Design 
     (PED), Various Locations; and
       (5) $18.633 million for FY 2002 and $13.029 million for FY 
     2003 for completion of construction of Project MEL-001, 
     Multiprogram Energy Laboratories, Infrastructure, Various 
     Locations.
       Subsection 2581(d) provides that none of the funds 
     authorized to be appropriated in subsection 2581(b) may be 
     used for construction at any national security laboratory as 
     defined in section 3281(l) of the National Defense 
     Authorization Act for Fiscal Year 2000 (50 U.S.C. 2471(l)) or 
     at any nuclear weapons production facility as defined in 
     section 3281(2) of the National Defense Authorization Act for 
     2000 (50 U.S.C. 2471(2)). This limitation is included to 
     preserve the Science Committee's sole jurisdiction over the 
     bill, since the jurisdiction of these laboratories and 
     facilities reside with the Committee on Armed Services.

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

     Sec. 2601. Research, Development, Demonstration and 
         Commercial Application of Energy Technology Programs, 
         Projects, and Activities
       Subsection 2601(a) requires that RD&D and commercial 
     application programs, projects, and activities authorized 
     under this Act be carried out under the procedures of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5901 et seq.), the Atomic Energy Act of 1954 
     (42 U.S.C. 2011 et seq.), or any other Act under which the 
     Secretary is authorized to carry out such programs, projects, 
     and activities, only to the extent the Secretary is 
     authorized to carry out such activities under each Act and 
     except as otherwise provided in this Act.
       Subsection 2601(b) authorizes the Secretary to use grants, 
     joint ventures, and any other form of agreement available to 
     the Secretary to the extent authorized under applicable 
     provisions of law, contracts, cooperative agreements, 
     cooperative R&D agreements under the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.), 
     except as otherwise provided in this Act, to carry out RD&D 
     and commercial application programs, projects, and 
     activities.
       Subsection 2601(c) defines the term ``joint venture'' for 
     the purpose of this section to have the meaning given that 
     term under section 2 of the National Cooperative Research and 
     Production Act of 1993 (15 U.S.C. 4301), except that such 
     term applies to RD&D and commercial application of energy 
     technology joint ventures.
       Subsection 2601(d) requires that section 12(c)(7) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(c)(7)), relating to the protection of information, will 
     apply to RD&D and commercial application of energy technology 
     programs, projects, and activities under this Act.
       Under subsection 2601(e), an invention conceived and 
     developed by any person using funds provided through a grant 
     under this Act shall be considered a subject invention for 
     the purposes of chapter 18 of title 35, United States Code 
     (commonly referred to as the Bayh-Dole Act).
       Subsection 2601(f) requires the Secretary to ensure that 
     each program authorized by this Act includes an outreach 
     component to provide information, as appropriate, to 
     manufacturers, consumers, engineers, architects, builders, 
     energy service companies, universities, facility planners and 
     managers, State and local governments, and other entities.
       Subsection 2601(g) requires the Secretary to provide 
     guidelines and procedures for the transition of energy 
     technologies from research through development and 
     demonstration to commercial application of energy technology 
     where appropriate. Nothing in this section precludes the 
     Secretary from: (1) entering into a contract, cooperative 
     agreement, cooperative R&D agreement under the Stevenson-
     Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et 
     seq.), grant, joint venture, or any other form of agreement 
     available to the Secretary under this section that relates to 
     RD&D and commercial application of energy technology; or (2) 
     extending a contract, cooperative agreement, cooperative R&D 
     agreement under the Stevenson-Wydler Technology Innovation 
     Act of 1980, grant, joint venture, or any other form of 
     agreement available to the Secretary that relates to RD&D to 
     cover commercial application of energy technology.
       Subsection 2601(h) states that this section shall not apply 
     to any contract, cooperative agreement, cooperative R&D 
     agreement under the Stevenson-Wydler Technology Innovation 
     Act of 1980 (15 U.S.C. 3701 et seq.), grant, joint venture, 
     or any other form of agreement available to the Secretary 
     that is in effect as of the date of enactment of this Act.
     Sec. 2602. Limits on Use of Funds
       Subsection 2602(a) prohibits the use of funds authorized by 
     this Act to award a management and operating contract for a 
     federally owned or operated nonmilitary energy laboratory of 
     the Department unless such contract is awarded using 
     competitive procedures or the Secretary grants, on a case-by-
     cease basis, a waiver to allow for such a deviation. The 
     Secretary may not delegate the authority to grant such a 
     waiver. At least 60 days before a contract award, amendment, 
     or modification for which the Secretary intends to grant such 
     a waiver, the Secretary shall submit to the appropriate 
     congressional committees a report notifying the committees of 
     the waiver and setting forth the reasons for the waiver.
       Subsection 2602(b) prohibits the Secretary from using funds 
     to produce or provide articles or services for the purpose of 
     selling the articles or services to a person outside the 
     Federal Government, unless the Secretary determines that 
     comparable articles or services are not available from a 
     commercial source in the United States.
       Subsection 2602(c) prohibits the Secretary from using funds 
     to prepare or initiate Requests for Proposals for a program 
     if Congress has not authorized the program.
     Sec. 2603. Cost Sharing
       Except as otherwise provided in this subtitle, subsection 
     2603(a) mandates that for R&D programs carried out under this 
     subtitle, 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 R&D is of a basic or fundamental nature.
       Similarly, under subsection 2603(b) the Secretary shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this subtitle to be provided from 
     non-Federal sources. The Secretary may reduce the non-Federal 
     requirement under this subsection if the Secretary determines 
     that the reduction is necessary and appropriate considering 
     the technological risks involved in the project and is 
     necessary to meet the objectives of this subtitle.
       In calculating the amount of the non-Federal commitment 
     under subsection (a) or (b), the Secretary may include 
     personnel, services, equipment, and other resources.
     Sec. 2604. Limitations on Demonstrations and Commercial 
         Application of Energy Technology
       Section 2604 requires the Secretary to provide funding only 
     for scientific or energy demonstration and commercial 
     application of energy technology programs, projects or 
     activities for technologies or processes that can reasonably 
     be expected to yield new, measurable benefits to the cost, 
     efficiency, or performance of the technology or process.
     Sec. 2605. Reprogramming
       Section 2605 prohibits the reprogramming of funds in excess 
     of 105 percent of the amount authorized for a program, 
     project, or activity, or in excess of $0.25 million above the 
     amount authorized for the program, program, project, or 
     activity until the Secretary submits a report to the 
     appropriate congressional committees and a period of 30 days 
     has elapsed after the date on which the report is received. 
     The report shall be a full and complete statement of the 
     proposed reprogramming and the facts and circumstances in 
     support of the proposed reprogramming. This section prohibits 
     the Secretary from obligating funds in excess of the total 
     amount authorized to be appropriated to the Secretary by this 
     Act and prohibits the Secretary from using funds for any use 
     for which Congress has declined to authorize funds.

                        TITLE VI--MISCELLANEOUS

               Suhtitle B--Other Miscellaneous Provisions

     Sec. 2611. Notice of Reorganization
       Section 2611 requires the Secretary to provide notice to 
     the appropriate congressional committees not later than 15 
     days before any reorganization of environmental research or 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     program, project, or activity of the Department.
     Sec. 2612. Limits on General Plant Projects
       Section 2612 requires the Secretary to halt the 
     construction of a civilian environmental research, 
     development, or demonstration, or commercial application of 
     energy technology ``general plant project'' if the estimated 
     cost of the project (including any revisions) exceeds $5.0 
     million unless the Secretary has famished a complete report 
     to the appropriate congressional committees explaining the 
     project and the reasons for the estimate or revision.

[[Page H5038]]

     Sec. 2613. Limits on Construction Projects
       Section 2613 prohibits construction on a civilian 
     environmental R&D, scientific or energy RD&D, or commercial 
     application of energy technology project for which funding 
     has been specifically authorized by law to be initiated and 
     continued if the estimated cost for the project exceeds 110 
     percent of the higher of: (1) the amount authorized for the 
     project; or (2) the most recent total estimated cost 
     presented to Congress as budget justification for such 
     project. To exceed such limits, the Secretary must report 
     in detail to the appropriate congressional committees on 
     the related circumstances and the report must be before 
     the appropriate congressional committees for 30 
     legislative days (excluding any day on which either House 
     of Congress is not in session because of an adjournment of 
     more than three days to a day certain). This section shall 
     not apply to any construction project that has a current 
     estimated cost of less than $5.0 million.
     Sec. 2614. Authority for Conceptual and Construction Design
       Section 2614 limits the Secretary's authority to request 
     construction funding in excess of $5.0 million for a civilian 
     environmental R&D, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity until the 
     Secretary has completed a conceptual design for that project. 
     Furthermore, if the estimated cost of completing a conceptual 
     design for the construction project exceeds $0.75 million, 
     the Secretary must submit a request to Congress for funds for 
     the conceptual design before submitting a request for the 
     construction project. In addition, the subsection allows the 
     Secretary to carry out construction design (including 
     architectural and engineering services) in connection with 
     any proposed construction project that is in support of a 
     civilian environmental R&D, scientific or energy research, 
     development, and demonstration, or commercial application of 
     energy technology program, project, or activity of the 
     Department if the total estimated cost for such design does 
     not exceed $0.25 million; if the total estimated cost for 
     construction design exceeds $0.25 million, funds for such 
     design must be specifically authorized by law.
     Sec. 2615. National Energy Policy Group Mandated Reports
       Subsection 2615(a) requires that upon completion of the 
     Secretary's review of current funding and historic 
     performance of the Department's energy efficiency, renewable 
     energy, and alternative energy R&D programs in response to 
     the recommendations of the May 16, 2001, Report of the 
     National Energy Policy Development Group, the Secretary shall 
     transmit a report containing the results of such review to 
     the appropriate congressional committees.
       Subsection 2615(b) requires that upon completion of the 
     Office of Science and Technology Policy and the President's 
     Council of Advisors on Science and Technology reviewing and 
     making recommendations on using the Nation's energy resources 
     more efficiently, in response to the recommendations of the 
     May 16, 2001, Report of the National Energy Policy 
     Development Group, the Director of the Office of Science and 
     Technology Policy shall transmit a report containing the 
     results of such review and recommendations to the appropriate 
     congressional committees.
     Sec. 2616. Independent Reviews and Assessments
       Section 2616 requires the Secretary to enter into 
     appropriate arrangements with the National Academies of 
     Sciences and Engineering to ensure that there be periodic 
     reviews and assessments of the programs authorized by this 
     Act, as well as the goals for such programs as established 
     under section 2004. Such reviews and assessments shall be 
     conducted at least every five years, and the Secretary shall 
     transmit to the appropriate congressional committees 
     reports containing the results of these reviews and 
     assessments.

 III. Committee on Science Views on H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


  Division B: Comprehensive Energy Research and Technology Act of 2001

     Sec. 2004. Goals
       The cost and performance-based goals in section 2004 guide 
     and unify the RD&D and commercial applications programs 
     authorized in this Act. The Secretary must refine and update 
     measurable cost and performance-based goals in furtherance of 
     the Act's purposes in section 2003 on a biennial basis. As 
     provided in section 2616, the Secretary must enter into 
     arrangements with the National Academies of Sciences and 
     Engineering for periodic reviews and assessments of the 
     programs in the Act and the goals established under section 
     2004.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

       In selecting applicants and project sites, the Secretary 
     should, consistent with subsection 2103(d)(1), give special 
     consideration to proposals that address environmental needs 
     in actual and potential Clean Air Act nonattainment areas 
     like the Washington, DC metropolitan region and in 
     communities seeking to meet zero air emissions goals, like 
     Santa Clara County, California.
       The Committee considers the United States Postal Service 
     (USPS) a ``partner'' or entity eligible for funding under the 
     alternative fuel vehicle program, The Committee commends the 
     USPS for taking a leadership role in the conversion of its 
     aging fleet to more environmentally sound electric vehicles. 
     Over the next five years, some 6,000 Long-Life Vehicles will 
     replace an aging fleet of trucks in southern California, New 
     York, and the Washington, DC metropolitan area. It is 
     estimated that over three million gallons of fuel will be 
     saved, and 170,000 tons of carbon dioxide will be removed 
     from the environment as a result of the effort. The Committee 
     encourages the USPS to continue this important procurement 
     and, in doing so, show leadership to other governmental 
     entities considering the advancement and deployment of 
     alternative fuel vehicles.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

          Subtitle B--Distributed Power Hybrid Energy Systems

       The Committee notes that the National Renewable Energy 
     Laboratory (NREL) currently performs certain duties of this 
     subtitle, especially with regard to performing and 
     integrating RD&D activities related to distributed power 
     hybrid systems, and expects NREL to continue and expand these 
     activities.
       The Committee encourages the Secretary to solicit proposals 
     from institutions of higher education for sharing costs of 
     acquisitions, installation, instrumentation, data 
     acquisition, and data analysis and reporting for building 
     cooling/heating and power systems, district energy systems, 
     and other distributed energy resources. In this regard, the 
     Secretary should consider, proposals emphasizing 
     installations using emerging technologies, developed with 
     the support of the Department, that offer energy 
     efficiency and/or environmental benefits. The Committee 
     also encourages the Department to require performance 
     reports back from recipients of these awards detailing 
     steps taken, efficiency gains achieved, and educational 
     benefits realized. These reports would constitute ``case 
     studies'' demonstrating the viability of these systems. 
     Should the Secretary require such reports, funding for the 
     reporting should be included in the grant or contract.
     Sec. 2123. Strategy, Sec. 2124. High Power Density Industry 
         Program
       Subsection 2123(b)(5) describes a RD&D and commercial 
     application program to be implemented as part of the 
     Distributed Power Hybrid Systems Strategy. Subsection 2124(b) 
     identifies areas that should be considered in carrying out 
     the program to improve energy efficiency, reliability, and 
     environmental responsibility in high power density 
     industries. Existing programs are already researching real-
     time performance monitoring, conserving and optimizing energy 
     systems, simulation and analysis of power systems, and 
     utilization of power generation byproducts in an 
     environmentally friendly manner. This work can become a base 
     for implementing the Distributed Power Hybrid Systems 
     Strategy and the High Power Density Industry Program. The 
     Secretary should rely on research and technology development 
     work already begun at State Centers of Excellence such as the 
     Center for Electric Power at Tennessee Technological 
     University to accelerate implementation of sections 2123 and 
     2124.
     See. 2125. Micro-Cogeneration Energy Technology
       Section 2125 is intended to help realize the potential of 
     cogeneration technology as a clean source of energy for a 
     variety of applications. Many believe the space heating 
     industry is often overlooked in the development of such 
     distributed cogeneration systems. The Committee believes 
     that, with further research and development, cogeneration of 
     electric power as a byproduct of building heating system 
     operation could provide significant environmental benefits at 
     low cost and high reliability and that the heating appliance 
     industry is uniquely positioned to provide reliable 
     electricity using environmentally friendly cogeneration power 
     with practical technology.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                     Subtitle D--Green School Buses

       The Committee directs the Secretary to ensure that grants 
     under this subtitle will demonstrate the use of alternative 
     fuel school buses and, as a result, lead to the replacement 
     of pre-1977 (model year) diesel and gas buses and pre-1991 
     (model year) diesel buses and, in limited situations (such as 
     in low income areas), the expansion of existing fleets using 
     conventional fuel buses with new, alternative fuel buses. In 
     providing grants under this subtitle, the Secretary shall 
     ensure that recipients of assistance certify that replaced 
     buses are crushed or otherwise appropriately disposed of in 
     accordance with law.

             Coordination of Alternative Fuel Bus Programs

       Division B contains various authorities relating to 
     alternative fuel buses, such as title I, subtitle A 
     (Alternative Fuel Vehicles), title I, subtitle D (Green 
     School Buses), section 2206(2) (fuel cell bus demonstrations 
     under the Spark M. Matsunaga Hydrogen RD&D Act of 1990), and 
     relating to transportation applications for fuel cells 
     (subsection 2461 (b)). The Committee intends that the 
     Secretary will coordinate implementation of the various 
     provisions to maximize their integration and effectiveness.

[[Page H5039]]

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

            Suhtitle F--DOE Authorization of Appropriations

       The Committee directs the Department to continue RD&D on 
     Smart Window technologies including electro-chromics and 
     other advanced technologies in energy-efficient windows, 
     doors, and skylights.
       The Committee is aware of the potential of optical/
     graphical programming for driving, controlling, and improving 
     virtually all types of electric motors. Successful 
     development of a simple, low cost, and generic solution for 
     the intelligent control of electric motors could 
     significantly improve the energy efficiency of electric 
     motors. Such technology could have tremendous impact on the 
     heating, ventilation, and air conditioning industry, among 
     others. In FY 2001, the DOE, through the Office of Industrial 
     Technologies, invested in several promising energy efficient 
     technologies, including the development of an optical 
     programming system for intelligent control of electric air 
     conditioning motors. The Committee strongly encourages the 
     Department to further increase its investment in optical/
     graphical programming technologies.
       The Committee is aware of various engine technologies, 
     including an axial piston OX2 engine, which have numerous 
     potential advantages over the design of conventional internal 
     combustion engines. The Secretary should, where appropriate, 
     support efforts by universities and the private sector to 
     continue, and expand, development and testing of technologies 
     that provide environmental advantages over current 
     conventional engines, such as improved power-to-weight 
     ratios, improved fuel efficiencies, and reduced air 
     emissions.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

     Subtitle G--EPA Office of Air and Radiation Authorization of 
                             Appropriations

     Sec. 2175. Limitation on Demonstration and Commercial 
         Applications of Energy Technology
       The phrase ``measurable benefits to the cost, efficiency, 
     or performance of the technology or process'' in section 2175 
     includes environmental considerations. The Committee does not 
     intend for this provision to curtail the demonstration or 
     commercial application of energy technologies that are 
     efficient, effective, and environmentally beneficial. The 
     Committee believes this interpretation regarding EPA 
     technologies should also apply to section 2604, relating to 
     DOE technologies.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

       Section 2206 amends the Spark M. Matsunaga Hydrogen RD&D 
     Act of 1990 to establish a fuel cell bus demonstration 
     program to address hydrogen production, storage, and use in 
     transit bus applications. The Committee recognizes that fuel 
     cell technology could significantly contribute to improving 
     the cost effectiveness and environmental impact of mass 
     transit options, particularly in municipal buses and in 
     shuttle buses such as those operating at large airports. 
     However, more research needs to be done to address a number 
     of issues related to this technology. This demonstration 
     program should specifically address all aspects of the 
     introduction of this new technology, including the following 
     components:
       (1) Development, installation, and operation of a hydrogen 
     delivery system located on-site at transit bus terminals.
       (2) Development, installation, and operation of on-site 
     storage associated with the hydrogen delivery systems as well 
     as storage tank systems incorporated into the bus itself.
       (3) Demonstration of use of hydrogen as a practical, safe, 
     renewable energy source in a highly efficient, zero-emission 
     power system for buses.
       (4) Development of a hydrogen proton exchange membrane fuel 
     cell power system that is confirmed and verified as being 
     compatible with transit bus application requirements.
       (5) Durability testing of the fuel cell bus.
       (6) Identification and implementation of necessary codes 
     and standards for the safe use of hydrogen as a fuel suitable 
     for bus application, including the fuel cell power system and 
     related operational facilities.
       (7) Identification and implementation of maintenance and 
     overhaul requirements for hydrogen proton exchange membrane 
     fuel cell transit buses.
       (8) Completion of fleet vehicle evaluation program by bus 
     operators along normal transit routes, providing equipment 
     manufacturers and transit operators with the necessary 
     analyses to enable operation of the hydrogen proton exchange 
     membrane fuel cell bus under a range of operating 
     environments.
       The Committee is aware that the Department of 
     Transportation is currently developing and funding a number 
     of Bus Rapid Transit (BRT) demonstration programs around the 
     country. The Committee believes that the BRT program is 
     structured in a way that would facilitate the execution of 
     this fuel cell bus demonstration program, as well as reducing 
     redundancy in interagency research, and recommends the 
     Secretary consider integrating this fuel cell demonstration 
     with existing BRT initiatives where there is local support to 
     do so.

                       TITLE II--RENEWABLE ENERGY

                         Subtitle B--Bioenergy

     Sec. 2225. Authorization of Appropriations
       Subsection 2225(b) authorizes funds for biofuels energy 
     systems. The Committee is aware of a proposal to establish a 
     biofuels processing facility in New York to convert cellulose 
     materials into levulinic acid for multiple applications. As 
     part of the proposal, the State University of New York 
     College of Environmental Science and Forestry would also 
     develop a Bioenergy and Bioproducts Technology Center, 
     focusing on biofuels from lignocellulosic biomaterial. The 
     Committee strongly encourages the Secretary to consider 
     providing substantial financial assistance for this 
     biofuels proposal.
       Subsection 2225(d) authorizes the Secretary to provide 
     assistance for an integrated rice straw project in Gridley, 
     California, to convert rice straw into ethanol, electric 
     power, and silica, and an ethanol production facility in 
     Maryland to convert barley grain into ethanol for use in 
     motor vehicles or other uses.

                       TITLE II--RENEWABLE ENERGY

            Subtitle D--DOE Authorization of Appropriations

     Sec. 2261. Authorization of Appropriations
       As pointed out in a recent National Research Council 
     review, geothermal energy research at the DOE may be 
     undervalued in light of the significant U.S. and 
     international resource base.
       DOE should consider establishing a national geothermal 
     research center with the resources necessary to lead an 
     expanded multi-laboratory geothermal research effort in the 
     years ahead. DOE should also continue to build upon its past 
     efforts to involve industry, university researchers and the 
     national laboratories in strategic planning for the 
     geothermal energy program as it moves this program forward.
       The Committee is aware of the promise of emerging 
     geothermal energy systems. Within the Department's budget for 
     geothermal research, the committee urges on-going support for 
     university research on enhanced geothermal systems. 
     University research programs, such as the Energy & Geoscience 
     Institute (EGI) at the University of Utah and the 
     ``Geothermal of the West'' program, offer the promise of 
     tapping into under-utilized geothermal resources. This 
     program has specific relevance for electrical power in the 
     West, including the Great Basin, Northern California Coast 
     and Cascade Range. Continued investment by DOE in the 
     research into these promising geothermal systems may 
     dramatically reduce dependence on other energy sources, and 
     improve the sustainability of existing geothermal energy 
     systems.
       The Committee is aware of the capabilities of Texas 
     Southern University's (TSU) Photovoltaic Laboratory, which 
     has experience in demonstrating the potential of using 
     commercially available photovoltaic equipment to generate 
     electric power for electrically isolated applications in the 
     small commercial sector. The Committee urges the Department 
     to consider using the capabilities of the TSU laboratory in 
     testing and demonstrating components in the R&D phase as well 
     as those already commercialized.
       Subsection 2261(b) directs the Secretary to carry out a 
     research program, in conjunction with ``other appropriate 
     Federal agencies'' on wave powered electric generation. The 
     Committee intends the term ``other appropriate Federal 
     agencies'' to mean the Office of Naval Research.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

     Sec. 2303. Department of Energy Program
       The Committee is aware of concerns within the university 
     nuclear research reactor community that DOE may be 
     considering downscaling its support for numerous university 
     reactors. The Committee's authorization of Nuclear Education 
     Programs stands as a strong signal of our desire to see the 
     Department continue to maintain, and even expand, its 
     support of the existing research reactor infrastructure. 
     Institutions such as the University of Utah Nuclear 
     Engineering Program run robust nuclear research reactor 
     centers. Without their involvement, and the maintenance of 
     their reactor infrastructure, necessary expertise on 
     nuclear safety and storage would be lost to the Western 
     region, at the exact time that nuclear waste products may 
     arrive within the region. The Committee believes that a 
     balanced approach to nuclear power must include on-going 
     support for nuclear research reactors throughout the 
     various regions of the United States.

                        TITLE IV--FOSSIL ENERGY

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

       Subtitle C of title IV, the Natural Gas and Other Petroleum 
     Research, Development, and Demonstration Act of 2001, 
     authorizes a new, ten-year program at the Department for 
     research, development and demonstration of ultra-deepwater 
     natural gas and other petroleum exploration technologies. For 
     purposes of this program, ultra-deepwater is defined to be in 
     excess of 1,500 meters, or approximately 5,000 feet, below 
     the surface of the ocean. The Committee is hopeful that this 
     technology will enable the U.S. to increase the supplies of 
     oil and gas from the middle and western Gulf of Mexico and 
     other areas already open to drilling.
       The Department is to carry out the program through a non-
     profit Research Organization. The Committee based this model 
     on the highly successful example of

[[Page H5040]]

     SEMATECH, which guided jointly-funded efforts of the 
     Department of Defense and the semiconductor industry.
       The Committee intends that the Secretary exercise 
     continuing oversight over the Research Organization. It is 
     the Secretary's responsibility to ensure that the public 
     interest is being served by the Research Organization's 
     projects, that the projects are making the desired technical 
     progress, and that the public's money is being properly 
     spent. The Act requires that the Secretary receive and review 
     a specific research plan from the Research Organization each 
     year, and allows the Secretary to withhold the Research 
     Organization's funding for the year until the research plan 
     is satisfactory. The Act also requires annual audits by an 
     independent, outside auditing firm. Such audits were also 
     required of SEMATECH.
       The Act provides specific allocations for each of the types 
     of activities enumerated. However, in running the program, 
     the Secretary may find that these allocations are preventing 
     the most efficient and effective expenditure of funds. The 
     Secretary should notify the Committee if the allocations 
     prove problematic.
       The Act requires that all the projects undertaken under 
     this program have among their major goals the improvement of 
     safety and the limiting of environmental impacts. The 
     Committee expects the Secretary to carefully monitor the 
     program to ensure that safety and environmental impacts are 
     specifically addressed in the projects funded through the 
     Research Organization.
       This program of RD&D would only be applicable in certain 
     areas. Section 2443 prohibits activities through the RD&D 
     provisions of this Act or through any new technologies 
     developed under this section (or any other part of subtitle 
     C) in any offshore areas that are currently under federal 
     moratoria, such as areas off the coasts of California or 
     North Carolina.

                        TITLE IV--FOSSIL ENERGY

                         Subtitle D--Fuel Cells

       The Committee notes that three separate sections of the 
     bill authorize fuel cell RD&D and commercial application: 
     section 2143(c) pertaining to fuel-cell school buses, section 
     2206(2) pertaining to fuel cell bus demonstration programs, 
     and section 2461 pertaining to fuel cells. The Committee 
     intends that the Secretary will coordinate implementation of 
     these three provisions to maximize their integration and 
     effectiveness.
       The Committee also recognizes that local organizations, 
     such as the Houston-Galveston Area Council, are well equipped 
     to assist the Federal government in demonstrating the 
     benefits from research on fuel cell technologies used for 
     low-emission mass transit vehicles.

                            TITLE V--SCIENCE

            Subtitle E--DOE Authorization of Appropriations

       The Committee is concerned about practices employed by the 
     Department to enforce security at DOE scientific laboratories 
     funded under this section. The Committee notes that the 
     perception of racial profiling may have fostered a hostile 
     work environment and may be discouraging certain employees 
     and potential employees from working at DOE facilities. The 
     Committee is concerned that such loss of talent at DOE would 
     endanger DOE's missions to remain technologically competitive 
     and to protect national security.
  Mr. Chairman, these provisions reflect a balanced, bipartisan 
comprehensive approach to energy policy. They significantly increase 
the Nation's investments in R&D, on conservation and renewable energy 
sources, two fundamental public needs that are unlikely to be 
adequately addressed by market forces alone. At the same time, we 
continue and enhance our investment in research in oil, gas, coal, and 
nuclear power. We do so in a responsible way.
  I am pleased that the bill includes two measures I introduced, one to 
promote the use of alternative vehicles in general, and the other to 
promote the use of alternative fuel school buses in particular. These 
programs will both demonstrate the viability of hybrid electric, 
natural gas, and ultra-clean diesel technologies and help lower their 
cost in the marketplace.
  Many other Members of Congress on our committee on both sides of the 
aisle have contributed to portions of the bill, but I want to 
especially draw attention to the ultra-deep oil drilling research 
supported by our ranking member, the gentleman from Texas (Mr. Hall), 
the biofuels section introduced by our Subcommittee on Energy chairman, 
the gentleman from Maryland (Mr. Bartlett), numerous sections promoting 
clean energy supported by our Subcommittee on Energy ranking member, 
the gentlewoman from California (Ms. Woolsey), nuclear science 
provisions brought to us by the gentlewoman from Illinois (Mrs. 
Biggert), and the hydrogen provision sponsored by the gentleman from 
California (Mr. Calvert). That is just the beginning of a long list of 
contributors. This is a bipartisan team effort.
  I also want to draw attention to division E, which includes clean 
coal provisions worked out in arduous negotiations with the Committee 
on Energy and Commerce. I want to thank the gentleman from Louisiana 
(Chairman Tauzin) and the gentleman from Texas (Mr. Barton) and the 
ranking members, the gentleman from Michigan (Mr. Dingell) and the 
gentleman from Virginia (Mr. Boucher), and their staffs for their 
cooperation in reaching these agreements. We all agreed to put 
jurisdictional claims aside for the moment to have the tough decisions 
and discussions necessary to come up with a good program.
  I have to say though that those discussions were made more difficult 
by the behavior of the coal industry, which continues to display the 
same sort of sense of entitlement that has made past clean coal 
programs questionably productive. That is why in this program we have 
strict environmental and financial standards, to ensure that the 
projects we fund truly need a taxpayer subsidy; that they will result 
in marketable advances in technology; and that those technologies will 
result in real improvements in efficiency and emissions.
  Most importantly, we require that at least 80 percent of the money be 
spent on gasification technology, which, among its other attributes, 
provides the best chance of preventing carbon dioxide, the leading man-
made greenhouse gas, from escaping into the atmosphere.
  In fact, throughout the Committee on Science portions of the bill, we 
are cognizant of the very real threat of global climate change, and we 
worked to ensure that our Nation's energy policy takes climate change 
and other environmental issues into account.
  I wish that were true of every portion of H.R. 4, but it is not. That 
is why I oppose the bill in its current form, and I will vote against 
it if it is not amended. I will be supporting two key amendments. Let 
me just speak about them for a moment.
  If we are serious about reducing our dependence on foreign-source 
oil, and we have to be serious about that, if we are serious about 
protecting our environment, and that is of the highest priority, if we 
are serious about conserving energy, and if we are serious about 
helping the consumer, then we must pass the Boehlert-Markey amendment 
to raise corporate average fuel economy standards.
  H.R. 4 takes the smallest of steps in the direction of raising CAFE 
standards, far smaller steps than the National Academy of Sciences says 
are possible. We do not need a fig leaf CAFE provision that will still 
leave us exposed to oil shortages, high gas prices and environmental 
degradation. We need a real, feasible moderate CAFE increase, and that 
is what the Boehlert-Markey amendment would provide.
  Let me point out that the previous speaker said if we go too fast, 
too far, too soon, we will, and then he outlined some concerns. We are 
not going too fast, we are not going too far, we are not going too 
soon. We have come up with a reasonable standard, supported by the 
documentation of the National Academy of Sciences.
  Mr. Chairman, I urge the passage when we get to those amendments.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HALL of Texas. Mr. Chairman, I yield myself such time as I may 
consume.
  (Mr. HALL of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. HALL of Texas. Mr. Chairman, I rise, of course, in support of 
H.R. 4, aptly termed the Securing America's Future Energy Act of 2001.
  The Committee on Science has worked hard and in a very highly 
cooperative fashion, I think, to report a comprehensive bill that 
authorizes existing energy research and development programs of the 
Department of Energy and authorizes new programs to meet the 
challenging research needs of this Nation.
  I think the committee has done a good job. They certainly have 
recognized that we cannot put all of our eggs in one basket. We need to 
pursue research and development activities in energy conservation and 
energy efficiency and renewable energy technologies, as well as in 
fossil fuel energy and nuclear energy programs. We need

[[Page H5041]]

them all. In short, we need to support these applied research programs, 
which we know are the basic energy research programs of the office of 
science.
  I think we have been generous in funding the program at the National 
Laboratories and colleges and universities throughout the Nation that 
are engaged in energy research.
  Before yielding time to others, I want to take the opportunity to 
thank this good chairman, the gentleman from New York (Mr. Boehlert), 
for his interest in working with us to craft a bill that is supported 
by all the members of the committee. I think that is very unusual for a 
chairman. That does not happen very often here, but it has happened in 
our committee. We have worked together.
  I thank also the staff of the committee for their tireless efforts in 
putting together the kind of bill from the Committee on Science that we 
should all feel very proud to support.
  Finally, thanks also to the members of the committee for their 
suggestions and their contributions and their willingness to work on 
the committee's bill.
  Mr. Chairman, I yield 2 minutes to the gentlewoman from California 
(Ms. Woolsey), the ranking member of the Subcommittee on Energy, Ms. 
Woolsey.
  Ms. WOOLSEY. Mr. Chairman, I thank the gentleman for yielding me 
time, and I thank the gentleman for getting the pronunciation of my 
name right.
  As the ranking member on the Committee on Science's Subcommittee on 
Energy, I was pleased that the gentleman from Texas (Mr. Hall) and the 
gentleman from New York (Mr. Boehlert) led the way so that the 
Committee on Science was able to report out a bill that accomplishes 
much of what I consider important to bring our country's energy policy 
into the 21st century. In fact, the Committee on Science bill reflects 
my push for aggressive R&D goals and funding levels for all renewable 
energy sources. I appreciate the chairman working with me on this 
shared priority. Unfortunately, this bipartisan model did not take root 
in the final bill.
  It is no surprise to me that in this Chamber we have a variety of 
visions on what our energy future should look like, but there are 
points where the people of this country know what is best. And we ought 
to look at them to be our leaders. For example, many in my district 
share in the Nation's opposition to drilling for oil in ANWR. They 
consider it outrageous that drilling in this area is even included in 
this legislation.
  Americans around the country also cringe when they learn that this 
bill lines the pockets of the fossil fuel and nuclear industries, 
making these industries, as this bill reflects, our number one 
priority. It is not appropriate that these industries should be our 
number one priority, when we know that our focus must be to reduce 
reliance on fossil fuels and expensive, dangerous nuclear energy. 
Instead, we should be investing in renewable, safe, and efficient 
energy sources.
  Despite massive financial and scientific investments--not to mention 
a new PR campaign--the facts about nuclear power are unchanged. It's 
dangerous, expensive and has not delivered on decades-old promises of 
energy security and independence.
  While the nuclear industry claims that nuclear power is safe, the 
fact remains that people are skeptical--especially if a plant or 
disposal site is in their backyard, or nuclear waste is transported 
through their community.
  Americans want, need and deserve a smart energy policy that will take 
us into the 21st century--not a bill that continues down the path we've 
traveled for the last 100 years--a path that has led to global warming 
because of our overdependence on fossil fuels. That's why I can't vote 
for this energy bill.

                              {time}  1330

  Mr. BOEHLERT. Mr. Chairman, I proudly yield 1 minute to the 
gentlewoman from Illinois (Mrs. Biggert), a valuable member of the 
committee.
  Mrs. BIGGERT. Mr. Chairman, I rise today to commend all who have 
worked on H.R. 4, the Securing America's Future Energy Act. A national 
energy policy is long overdue; and this bill is a step in the right 
direction, and we need to include all sources of energy in this bill.
  As a Member of the Committee on Science, I was very pleased that the 
bill our committee reported included provisions to strengthen nuclear 
research and nuclear science and engineering programs at America's 
universities and colleges. Fewer Americans are entering this field and 
even fewer institutions are left with the capability to train them. 
Current projections are that 25 to 30 percent of the nuclear industry's 
workforce and 76 percent of the nuclear workforce at our national 
laboratories will begin to retire in the next 5 years.
  Nuclear science and energy engineering in the United States is a 50-
year success story that has been written by some of the brightest minds 
the world has ever known. America has truly been blessed as the world 
leader in this area, and this bill assures we maintain our leadership.
  Mr. Chairman, I urge my colleagues to support this bill.
  Mr. HALL of Texas. Mr. Chairman, I yield 1 minute to the gentlewoman 
from California (Ms. Lofgren).
  (Ms. LOFGREN asked and was given permission to revise and extend her 
remarks.)
  Ms. LOFGREN. Mr. Chairman, I want to salute the chairman and the 
ranking member of the committee for working together as a bipartisan 
team. The portion of this bill that came out of the Committee on 
Science is pretty darn good. It has a balance of conservation and 
renewable energies, and I am very proud and satisfied with it. The 
Fusion Energy Sciences Act was also included and, for our planet, it is 
going to be key in the long run.
  The problem in the bill is the things that did not come from the 
Committee on Science. Here is what is wrong: It provides no help for 
California to collect the $9 billion that we are owed by out-of-state 
energy providers; it lacks protection for oil drilling in the Arctic 
National Wildlife Refuge; it does not increase the CAFE standards for 
motor vehicles.
  The bill that did not go through the Committee on Science is short on 
vision and long on special interests. With over $36 billion in tax 
breaks to fat cats, the United States is going to have to borrow the 
money to give these tax breaks. So if there is a Texas equivalent to a 
Bronx cheer, that is what the President is giving to California once 
again.
  Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Rohrabacher).
  Mr. ROHRABACHER. Mr. Chairman, I rise in strong support of President 
Bush's comprehensive energy legislation. In California, we are on the 
edge of an economic disaster because for decades our State has turned 
down every effort to develop oil and natural gas resources, not to 
mention nuclear power, of course.
  The President's bill is a positive bill. It has provisions in it for 
conservation and, yes, my colleague is right, we in the Committee on 
Science have participated in this process, because this bill also 
contains provisions for developing alternative energy resources.
  But most important, this bill enables us to increase the supply of 
oil and natural gas in the United States of America. We have no reason 
to be ashamed of that. Of course, there will never be an energy bill 
that is good enough for the fanatic environmentalists who oppose us 
every time we try to increase our Nation's oil and natural gas 
supplies.
  This bill will help us have more oil and natural gas, take us off of 
foreign dependency and ensure American prosperity.
  Mr. Chairman, I support the President's comprehensive bill.
  Mr. HALL of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the 
gentleman from Pennsylvania (Mr. Hoeffel).
  Mr. HOEFFEL. Mr. Chairman, I thank the gentleman for yielding time.
  Mr. Chairman, for 25 years, this country has not permitted the 
commercial reprocessing of spent nuclear fuel. We have said that the 
reactor waste generated around this country at reactors shall not be 
reprocessed, for the very sound reason that the reprocessing of this 
reactor waste generates plutonium, and plutonium is the key ingredient 
in nuclear weapons. And if we are generating plutonium through 
reprocessing, that is going to threaten our efforts to stop the 
proliferation of weapons around the world and to keep the supply of 
plutonium away from rogue nations and dictators.
  Now, this bill very quietly reverses that 25-year policy. It says 
that we

[[Page H5042]]

shall now have research and development spending on what they call 
advanced fuel recycling technology. That is reprocessing. That is 
taking spent reactor waste and reprocessing it, creating plutonium, 
which threatens our nonproliferation regime around the world.
  There was very little debate on this in the Committee on Science, and 
no consideration on the floor. The rule did not permit an amendment by 
the gentlewoman from California (Ms. Woolsey) that would have allowed a 
straight up-or-down vote.
  Mr. Chairman, this is not just an issue for our national energy 
policy; it affects our international relations as well. And there is no 
way, with so little debate and so little public notice and no hearings, 
that we should be approving this. Vote no.
  Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan (Mr. Smith).
  (Mr. SMITH of Michigan asked and was given permission to revise and 
extend his remarks.)
  Mr. SMITH of Michigan. Mr. Chairman, as a former member of the 
Presidential Oil Policy Commission, I have seen how energy policy 
mistakes can contribute to supply disruptions and high prices.
  This legislation supports my vision for a broad portfolio of energy 
options by making traditional sources of energy cleaner, by researching 
and making alternative and renewable sources of energy more available, 
and by educating the next generation of scientists.
  The Committee on Science has contributed to this legislation by 
authorizing the research and development programs that will help 
increase supplies of clean, renewable, and affordable energy. Coal is 
an abundant domestic source of power that plays a truly critical role 
in electricity generation in States like Michigan. However, we do need 
to make it cleaner and more efficient, and this legislation's 
provisions for clean coal technology point us in that direction.
  Nuclear power, which accounts now for 28 percent of the Nation's 
electricity, is a critical energy source that produces nearly zero 
greenhouse gas emissions. However, we are in danger of losing 
international leadership in nuclear technologies, and that is why I 
support the nuclear R&D provisions in this bill.
  Mr. Chairman, this is a good bill that will ensure that we have the 
energy needed to power the economic growth of the future.
  Mr. HALL of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the 
gentleman from California (Mr. Farr).
  Mr. FARR of California. Mr. Chairman, I thank the gentleman for 
yielding time.
  I rise today to compliment the committee that is before the floor 
today. The Committee on Science in this House did a tremendous job of 
designing a bill that really meets the science needs of America on 
energy. This bill is being used as the carrot tied to a stick, which is 
tied to a very ugly vehicle behind. I want to compliment the members of 
the Committee on Science on both sides of the aisle for producing a 
real substantive bill. Unfortunately, the rest of the bill that is 
incorporated with is one that we cannot support.
  I look at this bill and what I see in it is whoever wrote the whole 
big package had one thing in mind, and that is that they were looking 
at the price, without understanding the value. So this bill addresses 
the price of everything and the value of nothing.
  The bill knows the price of rewards for special interests. They put 
those special interests in perspective by giving them a $36.4 billion 
tax break in this bill. That is equivalent to what 9.7 million 
Americans in 1998 paid in taxes.
  The cost of this bill is in the value to the environment. This bill 
says drill, drill, drill wherever oil may be. If we had oil under this 
Capitol, I am sure there would be proposals to drill for oil under the 
Capitol and under the Supreme Court and under the Library of Congress. 
This bill costs California ratepayers, who are not allowed to debate on 
the issue of rebates from obscene costs. This bill, in totality, is a 
bad bill.
  Mr. BOEHLERT. May I ask the Chair how much time is remaining?
  The CHAIRMAN pro tempore (Mr. Linder). The gentleman from New York 
(Mr. Boehlert) has 1\1/2\ minutes remaining.
  Mr. BOEHLERT. Mr. Chairman, I do not mean to challenge the umpire's 
call, that is cause for automatic ejection in baseball, but our 
scorecard says 2 minutes. Can the Chair look at those numbers again?
  The CHAIRMAN pro tempore. Our scorecard does not. Ours says the 
gentleman from New York has 1\1/2\ minutes remaining, and the gentleman 
from Texas has 2 minutes remaining.
  Mr. BOEHLERT. Mr. Chairman, I do not want to be ejected, but does the 
gentleman from Texas have 30 seconds he could yield to me?
  Mr. HALL of Texas. Mr. Chairman, I yield 30 seconds to the gentleman 
from New York (Mr. Boehlert).
  The CHAIRMAN pro tempore. The gentleman is willing to do that.
  Mr. BOEHLERT. So now I can say on my scorecard we have 2 minutes?
  The CHAIRMAN pro tempore. The gentleman can do that.
  Mr. BOEHLERT. And we still have an affection for the umpire. I thank 
the Chair.
  Mr. Chairman, I yield 1 minute to the gentleman from Kansas (Mr. 
Akin).
  Mr. AKIN. Mr. Chairman, I rise to support the clean coal power 
initiative in division E of H.R. 4. It is an effective and important 
initiative because it is going to give us environmentally friendly 
electricity at a reasonable cost and for decades to come.
  Coal comprises 85 percent of our fossil fuel resources. We have 
enough coal for 250 years of additional use. More than 50 percent of 
our current electricity comes from coal.
  Burning coal is our chief source of electricity, but by making it 
more efficient and by making it cleaner, we can improve the air 
quality. That is important to me, because we have air quality problems 
in the St. Louis area. This bill will do that.
  Already, we have made investments in coal technology over the last 30 
years that have reduced pollutants by 21 percent even though coal 
generation has tripled. Coal provides a clean, affordable and domestic 
energy source for us. This bill is very positive in cleaning that up 
and making it more reasonable.
  Mr. HALL of Texas. Mr. Chairman, I yield 1 minute to the gentleman 
from Guam (Mr. Underwood), the very capable delegate.
  Mr. UNDERWOOD. Mr. Chairman, I thank the gentleman from Texas for 
yielding.
  I want to draw attention to one part of this very large energy bill 
which draws attention to the insular areas and allows them to develop 
alternative sources and gives that additional emphasis.
  However, I am concerned about, under section 701, assessment of 
renewable energy resources, and section 702, renewable energy 
production incentives. There is a lot of attention drawn to solar 
power, there is attention drawn to geothermal, but there is no 
attention drawn to ocean thermal energy, which is a distinct 
possibility, particularly for those areas that are in the tropical 
zones.
  So I would like to ask the chairman of the Committee on Science to 
enter into a brief colloquy.
  Would the chairman be willing to work with us to consider inserting 
some language about ocean thermal energy into the assessment of 
renewable energy resources?
  Mr. BOEHLERT. Mr. Chairman, will the gentleman yield?
  Mr. UNDERWOOD. I yield to the gentleman from New York.
  Mr. BOEHLERT. Mr. Chairman, as my distinguished colleague knows, we 
are always very enthusiastic in our committee about alternative sources 
of energy, so the gentleman can be assured that both the gentleman from 
Texas (Mr. Hall) and I will work closely with the gentleman to address 
this.
  Mr. Chairman, I am pleased to yield 1 minute to the gentlewoman from 
Pennsylvania (Ms. Hart), a new but very valued member of the committee.
  Ms. HART. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  It is with pleasure that I stand up to support this energy bill. It 
contains a lot of different things; it is broad, it is all-
encompassing.
  The problems that we are looking to solve are not new ones. In fact, 
people in my constituency and probably all over the country have been 
calling

[[Page H5043]]

their congressional Members about these for a number of years.
  But the problem of high gas prices, high electrical prices, high 
gasoline prices at the pump cannot be solved unless we have a 
comprehensive energy policy. That is what this bill does.
  Vice President Cheney came to my district to launch the discussion 
nationwide. It was very well received. People are very happy to hear 
that we finally are going to have a comprehensive plan. Advancements in 
technology are included in here: clean coal technologies, nuclear 
advancements, fuel cells, investigation of renewable energy sources 
such as biomass, wind energy, hydro energy. But conservation is a very 
large part of this, and it is very important that we all understand 
that it is everyone's responsibility to be part of that conservation.
  We all intend to work hard to get this passed. I am a big supporter 
of this, and I want to commend everyone who has been a part of making 
it happen.
  Mr. HALL of Texas. Mr. Chairman, I will close by thanking the 
committee. I would just like to go on record, though, as saying we do 
need to drill ANWR. It makes sense to drill ANWR. It does not make 
sense not to drill ANWR, because if we do not find the resources we 
have here in this country, we have to send our kids overseas to fight 
for energy when we have it right here.
  Japan was forced out into Malaysia by Franklin Roosevelt in 1939. We 
sent 450,000 kids to Kuwait. That was for energy. We did not need to do 
that. We need to take care of our children, and this is a bill that 
takes care of them and takes care of the country's energy needs for 
this Nation.
  Mr. Chairman, the U.S. will likely need to produce 45% more natural 
gas to meet growing demand and environmental goals in the next decade. 
A new, industry-led research, development and demonstration program is 
being established in this legislation to enhance and extend the natural 
gas and other petroleum resource base in areas where production is 
currently allowed by law and reserves are most prolific. These areas 
are largely in unconventional onshore gas fields, primarily in the 
Rocky Mountains and Southwestern United States, and the ultra-deepwater 
in the central and western Gulf of Mexico. Research, development and 
demonstration of technological capabilities in these provinces will 
improve the nation's capacity to meet incremental natural gas demand 
over the next twenty years in an economic, safe and environmentally 
responsible manner.
  Section 2441 of the ``Securing of America's Future Act of 2001'' 
(H.R. 4), ordered reported from the Committee on July 19, directs DOE 
to conduct long-term supply research and to establish a new industry-
led research, development and demonstration program. The Department 
will utilize the expertise of our nation's energy industry, 
institutions of higher education, public and private research 
institutions, large and small businesses and federal agencies to lower 
the cost, improve the efficiency and production of natural gas and 
other petroleum resources while improving safety and minimizing 
environmental impacts of this activity.
  The industry-led activities authorized by this legislation will be 
managed by an established 501(c)(3), tax-exempt research organization 
experienced in planning and managing programs in natural gas or other 
petroleum research, development and demonstration. The program is 
designed to ensure that the requirements of meeting near-term demand 
for natural gas supply will be conducted in the most efficient and 
cost-effective manner possible. This will require flexibility, 
unprecedented focus and input from industry, academia, and our national 
laboratories, and an acceleration of R&D activities. These goals can be 
best accomplished through an industry-driven effort, with key oversight 
provided by the Department of Energy, consistent with its stewardship 
role in energy policy and the use of public funds.
  The Department is directed to focus the industry-led activities 
authorized by this legislation on unconventional onshore natural gas 
and other petroleum resource research and development projects, 
individual deepwater research and development projects, and the 
development of new ultra-deepwater natural gas and other petroleum 
architectures. it will carry out programs of long-term research into 
new natural gas and other petroleum exploration and production 
technologies, such as methane hydrates; and environmental mitigation 
technologies for production from unconventional and ultra-deepwater 
resources, including carbon sequestration.

  All research, development and demonstration activities authorized by 
this legislation will be cost-shared by participants in the program. 
The deepwater and ultra-deepwater research, development and 
demonstration provisions of this bill shall be exercised only in the 
central and western Gulf of Mexico in areas that are already leased or 
are available for leasing. No offshore areas that are currently covered 
under federal leasing moratoria will be affected.
  This program will be funded from loans from the Treasury to be repaid 
from revenues from ultra-deepwater natural gas and other petroleum 
leases currently available for lease that would otherwise not be sold, 
additional appropriations and 7.5% of federal natural gas and other 
petroleum lease income.
  I believe that a concentrated industry effort with support from the 
government will enable us to produce the tremendous natural gas 
resources that exist in the Gulf of Mexico sooner and at lower cost 
than a traditional government R&D program. The model for this program 
is SEMATECH, the government-industry consortium that was established 
for the semiconductor industry in the 1980s. By combining industry R&D 
efforts, the semiconductor industry was able to remain competitive with 
the Japanese--a competitive advantage that the U.S. has maintained. 
This has been responsible, at least in part, for the enormous 
technology-drive growth that the U.S. enjoyed through the nineties--and 
even at a lower growth rate today.
  These R&D models work and we should not be reluctant to employ them 
as needed. The government's interests are protected thorough recoupment 
provision in the legislation. These provisions provide for the 
repayment of government funds used to develop and demonstrate the 
successful technologies that emerge from this program. The recoupment 
provisions in the bill, combined with the additional royalties that 
will be collected on the natural gas production from these ultradeep 
structures will recoup the government's investment in this program many 
times over.
  It's a win-win for the government and the taxpayers: The government 
funding up front makes it possible for this high-risk research to be 
undertaken by industry, which will generally be matching the government 
outlays on a dollar for dollar basis. The needed gas supplies will be 
produced sooner and at a time when domestic natural gas production is 
declining and demand is rapidly increasing.

                              {time}  1345

  The CHAIRMAN. All time for the Committee on Science has expired.
  It is now in order under the rule for the Committee on Ways and 
Means, represented by the gentleman from California (Mr. Thomas) and 
the gentlewoman from Florida (Mrs. Thurman). Each will control 10 
minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, as we look at this tax component, it has been 
characterized today in a number of different ways.
  Our friends on the other side of the aisle like to talk about the 
enormous giveaway to special interests. I would like to point out that 
the special interests in the bill who get the major-appliance 
reductions for energy efficiency are the American taxpayers. Those who 
invest in their home in energy-efficient ways are also the special 
interests involved in this bill. If they buy a more fuel-efficient car, 
they get significant tax credits.
  I think Members will find that throughout this tax provision, 
individuals who seek conservation and alternate energy get rewarded for 
that behavior. That is one of the major special interests.
  The other area that I think needs to be emphasized that people do not 
talk about is under the heading of reliability. That actually gets the 
largest percentage of money, almost 39 percent in this tax structure, 
because we frankly need to deal with electric transmission lines. We 
need to deal with natural gas transmission lines. Then, once we develop 
the natural gas transmission lines for clean-burning natural gas, we 
need distribution lines.
  One of the difficulties, I think, that we forget about is that it is 
not just the switch on the wall. Our ability to function in a post-
industrial energy-efficient world requires significant investment in 
infrastructure. Even a transition from the highly regulated one that we 
are in in the area of electricity to a more deregulated one requires 
attention in the Tax Code.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. THURMAN. Mr. Chairman, I yield myself 4 minutes.
  Mr. Chairman, the chairman talked about some very wonderful things 
that

[[Page H5044]]

are in this piece of legislation, but I have to say that the problem 
and regret is that earlier this year the congressional Republican 
leadership decided to enact a large tax reduction and did not reserve 
the resources for these other priorities. I believe they are important 
priorities.
  But as a result of that decision, and because this bill contains no 
revenue offsets, I believe that there is a substantial certainty that 
the tax reductions contained in the energy bill will be funded, at 
least in part, by raiding the Medicare and possibly the Social Security 
Trust Funds. Therefore, I cannot support this bill, and I would oppose 
it.
  Mr. Chairman, we are not the only ones saying this. Even a recent 
Republican memo on the surplus states that we are possibly already into 
the Medicare Trust Fund, and we are very close to touching the Social 
Security surplus in fiscal year 2003.
  When we did the markup of the charitable tax incentive bill the week 
before the Committee on Ways and Means approved an energy tax cut bill, 
the Committee on the Budget chairman, the gentleman from Iowa (Mr. 
Nussle), produced a letter that said that using economic projections 
from earlier in the year, there was enough of a surplus to support the 
charitable tax bill if no further tax or spending bills were ever 
enacted.
  When the committee considered the energy tax bill, no security letter 
from the Committee on the Budget was ever produced. Does this mean that 
there will not be sufficient surpluses to support the energy bill? I 
think we all know the answer is yes.
  Further, during the committee debate on the energy tax bill, when I 
asked how it is going to be paid for, I was told that there is a slush 
fund in the fiscal year 2002 budget resolution that is available on a 
first-come, first-served basis.
  Well, which one of the following priorities, then, will not be funded 
if they succeed in their current strategy of being first in line? I 
might add, many of these have been promised and debated.
  What about the $300 billion for a Medicare prescription drug benefit; 
the $134 billion from the Secretary of Defense, who states it is 
necessary just to maintain our current level of defense; the $200 
billion or $300 billion for defense modernization; $73 billion for 
agriculture; $6 billion for higher veterans benefits; the $14 billion 
that we did in reduction in the SEC fees; the $50 billion for promised 
health insurance; the $82 billion to fully fund the new educational 
bill, to all of which we have agreed; and $122 billion to extend 
expiring tax benefits; $119 billion for President Bush's remaining tax 
cuts in health insurance, long-term care, and housing; and $200 billion 
to $400 billion to address the AMT issue? There is $138 billion to end 
the tax cut sunsets in the last bill, and $13 billion for the 
charitable tax incentives just passed by this House.
  Mr. Chairman, we could have done something differently. We heard 
about this in the rules debate; but the fact of the matter is, there 
was a Democratic amendment that could have been brought to this floor 
that could have in fact taken care of both of these priorities which 
would have been offered by the gentleman from Massachusetts (Mr. 
Markey).
  He requested, but was denied by the Committee on Rules, this 
amendment, which would have paid for the energy tax provisions provided 
by the amendment and made the tax benefits contingent on a surplus 
outside of the Social Security and Medicare Trust Fund. By the way, 
that would not be the first time that we have voted on this floor to, 
in fact, make benefits contingent on surpluses outside of the Social 
Security and Medicare Trust Fund.
  So what might we do today? Instead of passing a fairly good energy 
package, one of many things that I believe and agree with, we are going 
to in fact allow the use of payroll taxes to pay for corporate tax 
relief.
  Mr. Chairman, I reserve the balance of my time.
  Mr. THOMAS. Mr. Chairman, it is my privilege to yield 1 minute to the 
gentleman from Oklahoma (Mr. Watkins), a member of the Committee on 
Ways and Means.
  Mr. WATKINS of Oklahoma. Mr. Chairman, I want to thank the gentleman 
from California (Chairman Thomas) and the gentleman from Louisiana 
(Chairman McCrery) for putting together the most balanced and 
comprehensive energy legislation that has been here in 3 decades, and I 
speak from experience; and this has more conservation and reliability 
in this bill, and some production, but the emphasis is on conservation 
and reliability.
  I was here in 1997 when President Jimmy Carter said we had an energy 
crisis of the moral equivalent to war. Some of us might remember that. 
There was a lot of conservation and also some renewable energy 
activity. It helped. But let me say, from that standpoint, we cannot 
conserve and we cannot just count on foreign sources to help us have a 
reliable source.
  This bill today does move us in a direction in the short term and in 
the long term in trying to have a reliable source of energy for this 
country. We need this bill. We must have this bill. If not, we are 
doing a disservice to our children and our grandchildren.
  Mrs. THURMAN. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Michigan (Mr. Levin).
  (Mr. LEVIN asked and was given permission to revise and extend his 
remarks.)
  Mr. LEVIN. Mr. Chairman, I thank the gentlewoman for yielding time to 
me.
  Mr. Chairman, when one adds to the oversized tax cut the slowing 
economy and the billions of dollars of unbudgeted spending for defense, 
education, and other priorities, this $33 billion grab bag of energy 
tax provisions, with no offsets to pay for them, four times more than 
the administration requested, is fiscally irresponsible.
  The Bureau of National Affairs reports today, this from an internal 
GOP memo, ``We are possibly already into the Medicare trust fund this 
year and every year through FY 05. We are very close to touching the 
Social Security surplus in FY 03.'' The Republicans believe that they 
can pull a Houdini trick, taking trust fund monies out of the lockbox 
without anybody seeing or catching them at the raid.
  I also want to urge the House to reject the Boehlert amendment on 
CAFE later today. The cure would be worse than the disease. That 
amendment is based on a very selective reading of an NAS report which 
particularly warns against forcing through a CAFE increase too quickly, 
saying, ``Technology changes require very long lead times to be 
introduced into the manufacturer's product line. Any policy that is 
implemented too aggressively has the potential to adversely affect 
manufacturers, their suppliers, their employees, their consumers.''
  This amendment of the gentleman from New York (Mr. Boehlert) is 
fundamentally flawed. It does not give the industry enough time to 
comply. The only way to meet the CAFE requirements of the Boehlert 
amendment would be for the manufacturers to close down entire vehicle 
lines. The Boehlert amendment would force the dislocation of American 
workers and job loss.
  Vote ``no'' on the Boehlert amendment. Because of what I have said, 
and others, regarding the tax provisions. Vote ``no'' on final passage 
of H.R. 4.
  Mr. THOMAS. Mr. Chairman, it is my privilege to yield 1 minute to the 
gentleman from Arizona (Mr. Hayworth), a member of the Committee on 
Ways and Means.
  Mr. HAYWORTH. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  Mr. Chairman, it is rather curious to note that if we could have 
converted into energy some of the fear and smear being employed here, 
we would have enough energy for the entire next century and well 
beyond.
  Mr. Chairman, every dollar that comes in for Medicare is going to be 
used for Medicare. What we have here is a comprehensive energy bill. We 
concentrate here on tax relief and tax incentives to make sure we work 
on new technologies, on conservation, and on exploring for the energy 
we need.
  While others want to play a game of wolf and fear, we have a 
comprehensive, reasonable, rational response. It is easy to be on all 
sides of the issue, as we often hear from our friends in the 
opposition.
  But still, we have the invitation: join us and work together, because 
the

[[Page H5045]]

stakes are too high to bury our heads in the sand or pull the fire 
alarm falsely.
  Mrs. THURMAN. Mr. Chairman, I yield 2 minutes to the gentleman from 
Washington (Mr. McDermott).
  Mr. McDERMOTT. Mr. Chairman, in January when George II was appointed 
by the Supreme Court, the oil dynasty took this country over again. The 
real issue of the tax cut, that was a minor issue, but today is a big 
deal. We have had five sets of elves working in five different places, 
never talking to each other, with half-day notice when they are going 
to have a bill, who put together something which we gave to the 
Committee on Rules, and last night, in the middle of the night, they 
put it out here on the floor.
  They were offered 143 amendments. They chose 16, of which three were 
from the Democrats, as though the Democrats had nothing to say about 
this whole thing.
  Mr. Chairman, we have had an interesting crisis created in this 
country in energy, so we have to have an energy policy. So we have an 
energy policy in process, but then the prices go down.
  The Wall Street Journal yesterday told the truth: ``Major oil 
companies struggle to spend huge hoards of cash. Shell oil is sitting 
on $11 billion they do not know what to do with. Yet, in this bill, we 
have to give them $12 billion more.''
  Bad enough as that is, we are not even paying for it. This is not a 
real bill; this is a PR piece for Republicans going home to their 
districts to say, We passed a comprehensive energy bill in the House of 
Representatives. They will all do it; they will each pick a piece they 
like. The folks back home should understand, none of this is paid for. 
It is all smoke and mirrors.
  When we come back in the fall, I do not know what they are planning 
to knock out to come up with $33 billion more. They threw a few things 
in for solar and a few things here and there, and they are going to 
stand up and tell us all about the electric cars and all this stuff. 
But the bulk of it, $20 billion out of the $33 billion, goes to the 
guys who have hordes of cash they do not know what to do with, and they 
are driving our electric prices on the west coast out of sight.
  Mr. Chairman, when are we really going to have a discussion? Maybe we 
will have to get a new President who is not appointed.
  Mr. THOMAS. Mr. Chairman, it is my pleasure to yield 1 minute to the 
gentlewoman from Washington (Ms. Dunn), a member of the Committee on 
Ways and Means, so we can get a slightly different perspective on this 
issue.
  Ms. DUNN. Mr. Chairman, I am very happy that the bill we are debating 
today promotes energy conservation and efficiency. These elements are 
critical, especially in my home State of Washington, where many 
continue to suffer from the high cost of utility bills.
  In times of energy supply shortages that result in retail rate 
increases, it is the role of the Government to empower families and 
businesses around America with the information that they need to make 
choices regarding their power usage.

                              {time}  1400

  As public servants, we can encourage efficiency by providing 
incentives for the use of ``smart meters,'' in this case for the use of 
smart meters installed at the cost to the company in many homes 
throughout my district. These are high-tech devices that tell consumers 
what time of day is most cost effective to flip on the switch to run 
their washers, their dryers, their sprinkler systems.
  Smart meters serve as evidence that conservation does not need to be 
dictated by the Federal Government, but rather can be learned, and with 
the right motivation and structure, conservation can work. I want to 
thank the chairman, the gentleman from California (Mr. Thomas), for 
including the smart meter provision I offered as part of this 
comprehensive bill and urge its passage.
  Mrs. THURMAN. Mr. Chairman, may I inquire as to how much time remains 
on each side?
  The CHAIRMAN pro tempore Mr. Linder). The gentlewoman from Florida 
(Mrs. Thurman) has 2 minutes remaining and the gentleman from 
California (Mr. Thomas) has 5\1/2\ minutes remaining.
  Mr. THOMAS. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan Mr. Camp), a member of the Committee on Ways and Means.
  Mr. CAMP. Mr. Chairman, I thank the chairman for yielding me this 
time, and I rise in support of H.R. 4 because this is a balanced and 
comprehensive energy strategy for our Nation.
  I would just like to point out two important initiatives in this 
bill. The first is an initiative that would help to encourage the 
collection and utilization of landfill gases and energy resource. A 
medium-sized landfill can produce enough energy to meet the annual 
electrical needs of 3,000 homes. I believe our Nation should harness 
the energy resources that are sitting in the backyards of most of our 
communities rather than allow them to be wasted.
  The second proposal is the CLEAR Act, which would help provide 
consumers tax incentives for the purchasing of advanced technology and 
alternative fuel vehicles. These incentives are positive steps that can 
be taken today to increase fuel economy of new vehicles. What is 
important about this provision is that it will allow the consumer to be 
part of the decision.
  All major auto makers that sell cars in the United States have 
alternative and hybrid fuel vehicles available. This will make our 
country the winner by providing the opportunity to pull these new 
exciting technologies into the marketplace, and I urge support for this 
legislation.
  Mr. THOMAS. Mr. Chairman, I yield such time as she may consume to the 
gentlewoman from Connecticut (Mrs. Johnson).
  (Mrs. JOHNSON of Connecticut asked and was given permission to revise 
and extend her remarks.)
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I support this bill; and I 
particularly want to recognize its understanding of the importance of 
renewable, clean sources of energy for the future.
  I firmly believe that a national energy policy must include promotion 
of alternatives to traditional energy sources. Doing so will reduce our 
reliance on imported oil, give consumers greater choice, stabilize 
energy prices, and benefit the environment at the same time. The reason 
our constituents find themselves faced with out-of-control heating oil 
and fuel prices is because our nation has no long-term energy policy.
  I am pleased that the tax portion of this package includes my 
legislation to promote the use of fuel cells which remove the hydrogen 
from fossil fuels to create energy with virtually no pollutants. They 
function must like a battery except fuel cells do not require 
recharging and are far more efficient than a combustion engine or power 
plant.
  H.R. 4 proposes a fuel cell tax credit for five years to create a 
market incentive for this revolutionary technology, which is reliable 
and will provide economic and environmental advantages to traditional 
fuel sources. The bill will accelerate commercialization of this 
technology by providing a $1,000 per kilowatt credit for efficient, 
stationary fuel cell systems.
  Stationary fuel cells capable of running 24 hours a day, seven days a 
week for five years with only routine maintenance are currently in 
operation today. As a distributed generation technology, fuel cells 
address the immediate need for secure, efficient, clean energy 
supplies, while reducing grid demand and increasing grid flexibility.
  First used by NASA in the space program, they are now in hospitals, 
schools, military installations, and manufacturing facilities and may 
be available for homeowners by the end of this year. Although these 
early products have proven energy efficiency and environmental 
advantages, help in accelerating volume production is essential in 
realizing lower prices for consumers and the full benefits of fuel 
cells.
  I am also a strong supporter of another provision included in this 
energy package to encourage the development of projects that capture 
landfill gas (LFG) and use it as an alternative energy source. LFG is 
produced as waste decomposes in landfills that serve our communities. 
LFG projects capture and use the gas to generate electricity or 
directly as an alternative fuel.
  H.R. 4 would extend the Section 45 tax credit for wind energy, 
closed-loop biomass, and poultry waste to LFG projects. It is estimated 
that an additional 700 landfill gas-to-energy projects could be made 
economically feasible with such an incentive. Helping to bring these 
projects online would help the nation save more than 40 million barrels 
of oil annually. With that kind of potential, we must ensure that we 
are tapping into LFG, which is

[[Page H5046]]

available in nearly every community in America.
  It is technologies like fuel cells and landfill gas projects that 
will help us decrease our dependence on foreign oil, conserve existing 
oil supplies, and reduce air pollution.
  Mr. THOMAS. Mr. Chairman, I yield 3 minutes to the gentleman from 
Louisiana (Mr. McCrery), the chairman of the Subcommittee on Select 
Revenue Measures, one of the significant hands and minds that allowed 
us to put this package together.
  Mr. McCRERY. Mr. Chairman, I thank the chairman for yielding me this 
time and for the role he played in putting this excellent package 
together.
  Mr. Chairman, first of all, let me just say that any speaker here on 
the floor today who says that this bill or any other bill that the 
Congress passes raids the Social Security trust fund is either 
intentionally misleading the public or is exhibiting a lack of 
understanding of the Social Security trust fund, the Medicare trust 
fund. The fact is that is not true, and I hope that we will get off of 
that.
  But with respect to the bill before us, Mr. Chairman, it is clear 
that our country continues to struggle with the fact that our domestic 
energy production does not meet our demand. The time is now for 
Congress to pass an energy policy that will address present needs and 
secure a stable supply of power for the future, and this bill 
accomplishes those goals.
  As chairman of the House Committee on Ways and Means Subcommittee on 
Select Revenue Measures, I had the opportunity to help find energy 
solutions through our Tax Code. My subcommittee held three hearings on 
the issue, giving us an opportunity to hear from the administration, 
Members of Congress, and many other interested parties.
  At our second hearing, I outlined several principles which should be 
adhered to in formulating a national energy tax policy. First and 
foremost, our complex problems require a balanced solution. We have 
heard that here today: we need balance. We have it in this bill, in the 
tax portion of the bill. Conservation, renewable, and alternative 
fuels, and expanded production of traditional fuels, such as oil and 
gas and coal, must all be part of the solution. The portion of the 
energy bill passed through the Committee on Ways and Means is faithful 
to that goal of a balanced solution.
  Conservation plays a key role, with expanded incentives for solar 
power, fuel cells and clean cars. Alternative fuels receive a boost, 
with new incentives to produce electricity from biomass and landfill 
gases. This legislation also encourages production through 
modifications to the existing section 29 program, which has been very 
successful in stimulating the production of oil and gas from tight 
sands and other difficult areas of production.
  At our hearings, the committee heard how bottlenecks in distribution 
were a significant problem. A stable supply of energy is only of use if 
we can get it to where it is needed when it is needed. Accordingly, the 
bill before us today helps utilities spin off their transmission assets 
to ensure they are used as efficiently as possible. In addition, we 
provide faster depreciation for oil refining properties and for gas 
distribution lines. Commonsense things to get the power to the people.
  Our energy tax policy should be sensitive to the environment also. 
Several provisions of the Ways and Means energy legislation reflect 
that. It assists refiners in coping with the cost of producing low-
sulfur fuel. It reduces taxes on diesel water emulsions, which have 
substantially lowered emissions than traditional diesel fuel. And it 
helps cover the cost of installing new technologies which will 
dramatically reduce the emissions from coal-fired plans.
  For too long Congress has viewed energy policy as a dilemma: produce 
or conserve; the economy or the environment. We do not have to have it 
one way or the other. We can do both. This bill does that. Vote for it.
  Mrs. THURMAN. Mr. Chairman, I yield the balance of my time to the 
gentleman from Texas (Mr. Doggett).
  Mr. DOGGETT. Mr. Chairman, this bill represents another partisan 
Republican failure. It offers no balance either for our energy policy 
or our federal budget. The only balance involved in this plan is the 
balance sheets of big oil, dirty coal, and dangerous nuclear 
industries. They receive substantial boons and largesse from the bounty 
of this bill.
  The balance here is the balance of sweet words about conservation and 
the environment, like those we just heard, with the harsh reality of 
huge subsidies for these industries at the expense of all the rest of 
us.
  Yesterday, we learned that the Treasury is having to borrow more 
money, incurring more public debt, increasing the amount of red ink in 
order to fund the already unwieldy tax cut upon which the President has 
insisted. What solution do the Republicans offer us today? Well, they 
are going to increase the flow of red ink. Today, they are drilling. 
They are drilling for red ink.
  And as we would say in Texas, they have hit a real ``gusher'' of red 
ink in this bill, because they have over $30 billion of mostly special 
interest tax breaks to be paid for directly out of the Medicare trust 
fund. And it is not my word, but a recent Republican memo, as reported 
in the July 27th BNA Daily Tax Report, that says they are already into 
the Medicare trust fund, and the Social Security trust fund is next. 
Those hard-earned payroll taxes going right back to these special 
interests that have been so generous with their campaign money and 
their special interest lobbying.
  This is not an energy policy, it is a collection of unjustified tax 
breaks, loopholes, and dodges masquerading as an energy policy. The 
only energy it reflects is the energy of campaign fund-raising and 
high-powered lobbying. Little wonder this plan was concocted in secret 
by Vice President Cheney and that he is afraid to disclose the 
participants and contents of his various conclaves with special 
interests, even to the nonpartisan General Accounting Office.
  Each year, Taxpayers for Common Sense, Friends of the Earth, and the 
U.S. Public Interest Research Group, identify subsidies that both waste 
taxpayer money and harm the environment. It is called the ``Green 
Scissors Report.'' And if this hodgepodge of a bill is approved, there 
will be plenty more to cut. Indeed it is the American people that are 
really getting cut by this bad bill, which should be rejected.
  We need a conservative national energy policy that emphasizes 
conserving our precious natural resources, increasing energy 
efficiency, and providing reasonable production incentives. This bill 
fails to achieve any of these goals.
  Mr. THOMAS. Mr. Chairman, I yield myself the remainder of my time.
  Volume will not stop the truth from getting out. At my request, the 
Democrats wrote me letters indicating what they would like to see in 
this energy package. In fact, the ranking member of the committee, the 
gentleman from New York (Mr. Rangel), wrote me a letter indicating 
there were 17 provisions that they requested. Twelve of them were 
included in their entirety and several in part.
  I found it ironic that the gentleman from Michigan took the very 
scant few minutes the Committee on Ways and Means has to talk about the 
tax package to, in fact, urge people to vote against an amendment to be 
offered by the chairman of the Committee on Science. So much for the 
real concern about this tax provision.
  Now, I am not going to answer in kind the comments that were made in 
terms of who is getting the money, except to say I cannot believe 
anyone out there listening really believes that the $12 billion 
identified by the gentleman from Washington was going to big oil. As a 
matter of fact, the largest energy production structure in the United 
States gets the smallest amount in this bill.
  It is a balanced bill. It contains many of the provisions the 
Democrats wanted. And if we will listen to their rhetoric, take a look 
at their vote, I think we will find a significant difference between 
what they are saying and how they are voting.
  The CHAIRMAN. All time for the Committee on Ways and Means portion 
has expired.
  It is now in order under the rule to provide time for the Committee 
on Resources. The gentleman from Utah (Mr. Hansen) and the gentleman 
from West Virginia (Mr. Rahall) each will control 10 minutes.
  The Chair recognizes the gentleman from Utah (Mr. Hansen).

[[Page H5047]]

  Mr. HANSEN. Mr. Chairman, I yield myself 4 minutes.
  Mr. Chairman, America needs more energy. During months of national 
discussion over energy, I have not heard anyone challenge the fact that 
our Nation needs more energy. Our Nation's demand for natural gas alone 
has risen by 45 percent over the past 15 years, 45 percent. Our 
National need for ore oil is on the rise. Our need for electricity has 
jumped sharply since the advent of the high-tech age and continues to 
rise. Most of the electricity in this country still comes from coal. 
That means our Nation's need for coal is rising.
  These are indisputable facts. What is in dispute is what we do about 
it. I say let us use a little common sense. We need a little old-
fashioned American integrity. We look for ways to curb our energy 
appetite. We look for ways to increase our production. We look for ways 
to be more efficient in the way we use energy, and we invent new 
technology and new kinds of energy.
  This bill, the Securing America's Future Energy Act of 2001, does 
every one of those things. It follows the dictates of reason and common 
sense. With this bill, we get by with less, we produce more, and we 
figure out ways to do things better.
  If we take out any part of this equation, we invite failure. If we 
take out increased production, we fail faster and faster. We cannot 
conserve our way out of the energy challenge that faces us today. We 
cannot research or design our way out of it. We cannot get through this 
with windmills and solar panels. Increased production has to be a part 
of our national energy policy. Without increased production, this 
entire Nation will be the next California.
  California is the Nation's leader in conservation, and we compliment 
them for that.

                              {time}  1415

  California is also the Nation's leader in the use of alternative 
fuels. Almost all of our best alternative fuel projects, solar, wind 
turbine farms, biomass plants, are in California.
  Where did California go wrong? California refused to increase 
production. California looked at its rising energy demands and said, We 
can conserve our way out of this. Apparently they cannot. They were 
wrong. I could have told them that. Whoever drives up to a pump that is 
marked alternative energy sources? There is not such a thing.
  As for conservation, may I just observe, when it comes to oil, at 
least Americans do not seem to have jumped on the conservation 
bandwagon. Look at what people are driving today here, both here within 
the Beltway and outside of the Beltway. Conservation is something that 
does not come to mind.
  The problem we have now with the bill that will be very controversial 
is going to be ANWR. But what people do not realize is that section 
1002 is one very small, small part and was never in the Arctic Refuge. 
This was left out when Congress did it with the idea that basically we 
someday can come and drill with the new technology we have in this 
particular area. So on the coastal plains it makes a lot of sense to 
look at it.
  This big, huge area, the size of South Carolina, 19 million acres, 
and we are using an infinitesimal fraction of it. I am amazed the 
people opposed to it have not taken the time to go and look at it.
  We are talking about a Congress and President who have come through 
the energy crisis of 1977. Look what happened then. We made a few 
mistakes. We were not ready to go. We cannot get behind the power curve 
of this particular issue.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I am among these who believe this country does need a 
new national energy policy, and we need to stick to it through times of 
energy scarcity as well as abundance. But not this energy policy, not 
what is in the pending legislation.
  The bill has nothing to do with providing Americans with energy 
security. Instead, it is a multibillion dollar giveaway of America's 
resources and America's taxpayer dollars to big oil, already awash in 
record profits. The headline, as we see here and has already been 
referred to in today's debate, from a Wall Street Journal article of 
this week: Major Oil Companies Struggle to Spend Huge Hoards of Cash.
  Imagine that. They have profited so mightily from the American public 
that they now cannot figure out what to do with all of their hoards of 
cash. Yet the Republican leadership of this body wants to reward big 
oil even further. Tax credits and tax cuts with no offsets. At least we 
have paid for ours in our version of an energy bill. Relief from 
compensating the American public from drilling on our Federal lands and 
waters.
  Make no mistake about it, these giveaways will come at the expense of 
our elderly. There are no more surpluses. There is no reserve into 
which we can dip. The $33.5 billion tax cuts in this bill, largely for 
energy companies, will come out of Medicare.
  Rob the elderly to pay Exxon, Shell and the rest of them? This is an 
energy policy? I think not.
  The Committee on Resources provision in this bill, in particular, 
provides unnecessary, uncalled for and unjust giveaways that are part 
and parcel of this legislation. One of these provisions, for example, 
would provide companies that want to drill for oil and gas in the Gulf 
of Mexico relief from having to pay royalties to the American people, a 
royalty holiday.
  Under this bill, a company drilling in Federal waters between 400 and 
800 meters deep can receive, for free, 5 million barrels of oil or gas 
equivalent. The owners of these resources are the American people. The 
American people get nothing, zero, zilch.
  Wait a minute, it gets even sweeter.
  Nine million barrels of oil or gas equivalent for drilling in waters 
between 800 to 1,600 meters for free, and if they drill deeper, a 
whopping 23 million barrels of oil or gas equivalent for free. This 
stuff is the makings of Ripley's ``Believe It or Not.''
  At a time when there is widespread public concern that collusion of 
gasoline price fixing has taken place, when there is widespread 
concern, such as in the Wall Street Journal, that these companies are 
already awash in cash, we are providing a royalty holiday in this 
legislation and that is a message that is simply wrong, plain wrong.
  Even Secretary Norton has expressed concern with the extent of the 
generosity to the gas companies offered by the royalty holiday 
language. When I brought the issue up with the President personally at 
the White House, the Vice President chipped in, We are not going to be 
offering these royalties to oil companies.
  The same goes to the royalty in-kind proposal which is nothing more 
than a thinly disguised ruse to reduce royalty payments. This bill 
would have the Federal Government receive oil and gas royalties, not in 
cash but in the form of actual crude oil and natural gas. Federal 
bureaucrats would then be in the business of marketing oil and gas, 
joining the ranks of Exxon, the Shells and the rest of them. It does 
not make any sense.
  I have never heard of it. This surprises me when it comes from the 
majority that rules this body. At a time when Russia and China are 
shedding themselves of state-run industries, why is the effort being 
made by this body to toss the Communist Manifesto into our national 
energy policy?
  To be clear, in their effort to award big oil, Republican leadership 
has not forgotten about big coal as well, certain coal, that is, coal 
produced on Federal lands, mostly in the West.
  The pending legislation would eliminate current law requirements 
providing for the diligent development of Federal coal leases. What 
does this do for America's energy security? Again, absolutely nothing, 
zero, zilch. But it will give rise to the rank speculation in Federal 
coal leasing to the detriment of consumers and coal field jobs. Members 
need to be aware of this provision, not considered by our committee, 
but slipped into this massive bill without even being publicly reviewed 
or debated after full committee action.
  Mr. Chairman, Democrats do not believe we have to shortchange the 
American taxpayer and short shrift the economy and the environment by 
doling out a royalty holiday to big oil. We do not believe we should be 
providing this unfettered access to drilling rigs into environmentally 
sensitive lands.

[[Page H5048]]

  We recognize the contributions certain Federal lands can make to our 
Nation's energy mix, already one-quarter of America's oil consumption 
and over one-third of our natural gas and coal use. But at the same 
time we recognize, as responsible public stewards of our land, that 
there are environmental and social costs to energy development which 
also need to be addressed in any national energy policy. This concern 
and this public responsibility is noticeably absent in this 
legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HANSEN. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Wyoming (Mrs. Cubin), chairman of the Subcommittee on Energy and 
Mineral Resources of the Committee on Resources.
  Mrs. CUBIN. Mr. Chairman, I rise in strong support of H.R. 4. 
Division F of this bill is a product of the Committee on Resources. The 
previous speaker should know very well that he has spent his precious 
time misleading Members and misrepresenting what is actually in this 
bill. He should be ashamed.
  We have held many hearings on issues involving the role of the public 
lands on our domestic energy supplies. Our work has led us to include 
provisions in H.R. 4 which require studies and analyses of impediments 
to environmentally sound development of potential energy resources on 
and under public lands. Section 6102 requires an inventory of public 
lands for solar, wind and geothermal energy potential and for coal 
resources. The SAFE Act expands current law to cover renewable energy 
supplies and coal resources. We need to know exactly what is in our 
energy bank, what energy is available to us as a country.
  Subtitle A of title II mandates a 2-year extension of the Deep Water 
Royalty Relief Act of 1995, which has been extremely successful. The 
previous speaker said, What does the United States get out of this, 
zero, zilch, nada, when the gentleman knows from just the Deep Water 
Royalty Relief Act of 1995, we have over $5 billion in the bank as a 
result of only bonuses that were bid in the Gulf of Mexico. That does 
not count any royalties. $5 billion is far from zero, nada, zilch.
  If we continue the program started by President Clinton, which is a 
much smaller program than was signed into law by President Clinton, we 
will get $5, $10, $15, $20 billion in bonuses that we otherwise will 
not get because it is simply too expensive to risk that kind of money 
to drill in the deep water.
  This is a good bill. I will refer to the other complaints about the 
bill later.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Oregon (Mr. DeFazio), a valuable member of the Committee on Resources.
  Mr. DeFAZIO. Mr. Chairman, gouge them at the gas pump, and stick it 
to them in their home heating or cooling bill. Seniors have been 
particularly hard hit, but that is not enough for the energy 
conglomerates in this country. Now they want to dip into the taxpayers' 
pockets.
  The same group that yesterday in the Wall Street Journal was revealed 
to have tens of billions of dollars sitting around that they cannot 
figure out what to do with because of the obscene profits they made in 
the last year by manipulating the West Coast electricity markets, the 
gas market, and the gasoline market, they need more. They want more. 
They want it all. And the Republican Party and the President want to 
deliver because they helped them get elected.
  Royalty exemption, $7 billion, right from the taxpayers to the oil 
and gas companies. Tax deductions for nonproducing wells, $1.2 billion, 
right from the taxpayers to the oil and gas companies.
  Income averaging. Average Americans, salespersons, people who sell 
cars for a living, for instance, they cannot do income averaging 
because that would cost the Treasury too much money. But guess what, 
this bill provides income averaging for the oil and gas industry. Since 
they made a $10 or $12 billion profit last year, maybe next year they 
will only make $6 billion, they should be able to average, unlike 
normal Americans.
  Guess what, they cannot afford to pay for the environmental analyses 
for the drilling that they want to do on our sensitive lands. The 
taxpayers should pay for that analysis. Absolutely unprecedented.
  Mr. Chairman, we are opening the Medicare lockbox, and we are taking 
the trust funds out and we are handing them to the oil and gas 
industry. They already have billions that they cannot spend. This is 
not going to get us one more well, one more gallon, one more cubic foot 
of gas, but it is going to enrich the coffers of these obscenely 
wealthy companies that are ripping off Americans.
  Mr. Chairman, we should be ashamed of the thrust of this bill. This 
is a 1950s energy policy. The only thing that is worthwhile to produce 
energy here is to send every American a copy and let them burn it in 
their fireplace next winter because they will not be able to afford 
their home heating bill.
  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from New 
York (Mr. Gilman).
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Chairman, a comprehensive national energy policy is 
in our Nation's best interest, and I am gratified that the President 
and the Congress are making our Nation's energy needs a national 
priority. There are many provisions of H.R. 4, Securing America's 
Future Energy Act of 2001, that I support.
  However, I have some reservations about allowing drilling in the 
Arctic, as well as the need to fully address a meaningful increase in 
the corporate average fuel economy, CAFE, standards.
  Mr. Chairman, as we consider this measure, let us bear in mind that 
we cannot drill our way to energy security, and we cannot out-pump 
OPEC. OPEC has cut production this year by 13 percent, some 3.5 million 
barrels a day. For every barrel we pump, OPEC cuts its production 
further to maintain their high prices of oil.
  Mr. Chairman, by approving the CAFE standards, we would be conserving 
some 40 percent of the consumption of oil used in our cars and light 
trucks by some 8 million barrels a day. I hope we can do that. Our 
advanced technology for meeting CAFE standards has lagged behind.
  I urge my colleagues to support this measure. It is a sound measure.

                              {time}  1430

  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from 
Oklahoma (Mr. Carson).
  Mr. CARSON of Oklahoma. Mr. Chairman, I rise today in strong support 
of legislation that would establish a national energy policy and to 
suggest as a Democrat that populist rhetoric against energy 
conglomerates is in fact not only misconceived but entirely 
counterproductive.
  America's economic prosperity and national security depend on the 
availability of reliable, affordable energy. The United States has an 
overwhelming demand for energy which is ever increasing due to our 
population growth. Fortunately, we have an incredible wealth of varied 
energy resources. Conservation and production, far from being competing 
policies, are in fact complementary solutions to our Nation's problems.
  Today this energy legislation has a tax credit for oil and gas 
production for marginal wells that will provide an incentive to keep 
them producing when oil prices drop and provide economic stability to 
States such as Oklahoma which have many marginal wells. It has royalty 
relief to encourage energy companies to go and invest in the deepwater 
drilling that is so essential if we are going to have more production 
in this country to meet our energy needs.
  Mr. Chairman, for these and many other reasons, I strongly encourage 
my colleagues to support this bill and to vote ``aye'' on final 
passage.
  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from 
Louisiana (Mr. John).
  Mr. JOHN. Mr. Chairman, I rise today in support of H.R. 4. Our 
Nation's future economic prosperity, our national security and our 
quality of life is all in the hands of what we do today in Congress as 
it relates to an energy policy.
  Americans have been on a roller coaster ride for the last 2 years 
with historically low prices for oil and natural gas being followed up 
with price spikes all over the country. We should

[[Page H5049]]

not have to wait until the next crisis to put a long-term energy policy 
in place.
  H.R. 4 is a good starting point to start this debate. It represents a 
balanced effort of expanding our energy supplies while creating 
incentives to reduce our reliance on fossil fuels. I personally would 
support a stronger production side in this piece of legislation because 
it troubles me that over 60 percent of our oil is imported from foreign 
countries. But I understand and I expect lively debate on some of the 
issues that we have to deal with.
  I will oppose efforts at striking the language dealing with ANWR. I 
have visited ANWR. I believe we can develop ANWR with the technology 
that leaves just a small, temporary footprint on the Alaskan north 
slope.
  For the sake of our national economy and security, we cannot continue 
to deny access to oil exploration on Federal lands.
  Mr. RAHALL. Mr. Chairman, I yield the balance of my time to the 
gentleman from California (Mr. George Miller), the former chairman of 
the Committee on Resources, now the Democratic leader on the Committee 
on Education and the Workforce.
  (Mr. GEORGE MILLER of California asked and was given permission to 
revise and extend his remarks.)
  Mr. GEORGE MILLER of California. Mr. Chairman, I rise in opposition 
to this legislation.
  Mr. Chairman, this legislation is really not about increasing 
America's energy independence. This legislation is about whether or not 
the automobile companies can continue to fail to meet their obligations 
to American society to improve the mileage standards in our 
automobiles. It is about whether or not the oil companies can find more 
money by drilling the American Treasury than they can find for drilling 
oil.
  This legislation in the heart of it has a terrible trade-off. It 
suggests that we go to the Arctic and that we drill in ANWR, in the 
Arctic National Wildlife Refuge, and then we take that oil and we put 
it into automobiles in this country to continue to waste it. Seventy 
percent of our energy in this country, our oil in this country, is used 
for transportation. Yet the Republicans have continued to put riders on 
appropriations bills so that we can continue to refuse to improve those 
automobile CAFE standards, the mileage per gallon standards that can 
save the American consumer, the American family billions of dollars 
over the coming years.
  Yet at the same time this bill is a raid on the Treasury. We are 
going to have a royalty holiday for those who drill in the deepwater on 
the theory that this will get them to drill. Ladies and gentlemen, read 
the oil and gas journals, read Forbes, read Fortune magazine, read the 
business journals, read the Wall Street Journal. The Gulf of Mexico is 
the hottest oil play in the world today. Yet you are going to give them 
an incentive to go there. You are going to give them an incentive to go 
there. And you are going to rave about the $5 billion in bonus 
royalties and bonus bids that you got as a result of this. Yet CBO 
tells us it is going to cost us $7 billion to get $5 billion. And the 
losses continue over time.
  Keep doing that and you end up with a deficit. Keep doing that and 
you end up socializing an industry from doing what it is already 
supposed to be doing and what it is already doing in the marketplace.
  This is a very bad bill.
  Mr. HANSEN. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, it is time to take a long, hard look at what must be 
done to help our Nation meet its energy needs. It is time to look past 
the special interest groups, the people who feel they run this Nation, 
their letter campaigns and political partisanship. This bill is right 
for the country. ANWR is right for the country. Producing more energy 
on existing energy sites is right for the country. It is right for 
American workers who look forward to 735,000 new, high-paying jobs.
  Why are these people against American workers? American workers are 
the greatest people on earth. They work hard, they get their money, 
they are patriotic Americans. Yet we hear from the other side that they 
are against these workers. I would hope that every person who looks at 
this takes care of the American workers.
  It is right for American consumers discouraged by wildly fluctuating 
prices. Look what they paid in their energy bills this year. Every time 
they drive up to the gas pump, they do not know whether it is 15 cents 
higher or lower. That should not happen.
  It is right for the national security of America because we cannot 
rely on those we can hardly rely on. That is what we are doing now.
  This bill is a bill whose time has come. This is a bill that is 
necessary for America, so we can stabilize the prices that we have, we 
can take care of our energy needs, we can take care of our elderly 
people, and we can take care of the American workers.
  That is the point I want to make. What do those folks voting against 
this have against the American workers? That to me is a critical issue. 
I would hope they would take that into consideration.
  The CHAIRMAN pro tempore (Mr. Linder). All time for general debate 
has expired.
  Pursuant to the rule, the amendment printed in part A of House Report 
107-178 is adopted and the bill, as amended, is considered as the 
original bill for the purpose of further amendment under the 5-minute 
rule and is considered read.
  The text of H.R. 4, as amended, is as follows:

                                 H.R. 4

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Securing 
     America's Future Energy Act of 2001'' or the ``SAFE Act of 
     2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                               DIVISION A

Sec. 100. Short title.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

Sec. 101. Authorization of appropriations.

         Subtitle B--Federal Leadership in Energy Conservation

Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal 
              energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility 
              incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Advanced building efficiency testbed.
Sec. 126. Use of interval data in Federal buildings.
Sec. 127. Review of Energy Savings Performance Contract program.
Sec. 128. Capitol complex.

                       Subtitle C--State Programs

Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools 
              and hospitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 134. LIHEAP.
Sec. 135. High performance public buildings.

          Subtitle D--Energy Efficiency for Consumer Products

Sec. 141. Energy Star program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.

                 Subtitle E--Energy Efficient Vehicles

Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.

                      Subtitle F--Other Provisions

Sec. 161. Review of regulations to eliminate barriers to emerging 
              energy technology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration 
              technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

Sec. 201. Average fuel economy standards for nonpassenger automobiles.
Sec. 202. Consideration of prescribing different average fuel economy 
              standards for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for 
              automobiles.

[[Page H5050]]

                       TITLE III--NUCLEAR ENERGY

Sec. 301. License period.
Sec. 302. Cost recovery from Government agencies.
Sec. 303. Depleted uranium hexafluoride.
Sec. 304. Nuclear Regulatory Commission meetings.
Sec. 305. Cooperative research and development and special 
              demonstration projects for the uranium mining industry.
Sec. 306. Maintenance of a viable domestic uranium conversion industry.
Sec. 307. Paducah decontamination and decommissioning plan.

                     TITLE IV--HYDROELECTRIC ENERGY

Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.

                             TITLE V--FUELS

Sec. 601. Tank draining during transition to summertime RFG.
Sec. 602. Gasoline blendstock requirements.
Sec. 603. Boutique fuels.
Sec. 604. Funding for MTBE contamination.

                       TITLE VI--RENEWABLE ENERGY

Sec. 701. Assessment of renewable energy resources.
Sec. 702. Renewable energy production incentive.

                          TITLE VII--PIPELINES

Sec. 801. Prohibition on certain pipeline route.
Sec. 802. Historic pipelines.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 901. Waste reduction and use of alternatives.
Sec. 902. Annual report on United States energy independence.
Sec. 903. Study of aircraft emissions.

                               DIVISION B

Sec. 2001. Short title.
Sec. 2002. Findings.
Sec. 2003. Purposes.
Sec. 2004. Goals.
Sec. 2005. Definitions.
Sec. 2006. Authorizations.
Sec. 2007. Balance of funding priorities.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

Sec. 2101. Short title.
Sec. 2102. Definitions.
Sec. 2103. Pilot program.
Sec. 2104. Reports to Congress.
Sec. 2105. Authorization of appropriations.

          Subtitle B--Distributed Power Hybrid Energy Systems

Sec. 2121. Findings.
Sec. 2122. Definitions.
Sec. 2123. Strategy.
Sec. 2124. High power density industry program.
Sec. 2125. Micro-cogeneration energy technology.
Sec. 2126. Program plan.
Sec. 2127. Report.
Sec. 2128. Voluntary consensus standards.

           Subtitle C--Secondary Electric Vehicle Battery Use

Sec. 2131. Definitions.
Sec. 2132. Establishment of secondary electric vehicle battery use 
              program.
Sec. 2133. Authorization of appropriations.

                     Subtitle D--Green School Buses

Sec. 2141. Short title.
Sec. 2142. Establishment of pilot program.
Sec. 2143. Fuel cell bus development and demonstration program.
Sec. 2144. Authorization of appropriations.

            Subtitle E--Next Generation Lighting Initiative

Sec. 2151. Short title.
Sec. 2152. Definition.
Sec. 2153. Next Generation Lighting Initiative.
Sec. 2154. Study.
Sec. 2155. Grant program.

    Subtitle F--Department of Energy Authorization of Appropriations

Sec. 2161. Authorization of appropriations.

Subtitle G--Environmental Protection Agency Office of Air and Radiation 
                    Authorization of Appropriations

Sec. 2171. Short title.
Sec. 2172. Authorization of appropriations.
Sec. 2173. Limits on use of funds.
Sec. 2174. Cost sharing.
Sec. 2175. Limitation on demonstration and commercial applications of 
              energy technology.
Sec. 2176. Reprogramming.
Sec. 2177. Budget request format.
Sec. 2178. Other provisions.

          Subtitle H--National Building Performance Initiative

Sec. 2181. National Building Performance Initiative.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

Sec. 2201. Short title.
Sec. 2202. Purposes.
Sec. 2203. Definitions.
Sec. 2204. Reports to Congress.
Sec. 2205. Hydrogen research and development.
Sec. 2206. Demonstrations.
Sec. 2207. Technology transfer.
Sec. 2208. Coordination and consultation.
Sec. 2209. Advisory Committee.
Sec. 2210. Authorization of appropriations.
Sec. 2211. Repeal.

                         Subtitle B--Bioenergy

Sec. 2221. Short title.
Sec. 2222. Findings.
Sec. 2223. Definitions.
Sec. 2224. Authorization.
Sec. 2225. Authorization of appropriations.

            Subtitle C--Transmission Infrastructure Systems

Sec. 2241. Transmission infrastructure systems research, development, 
              demonstration, and commercial application.
Sec. 2242. Program plan.
Sec. 2243. Report.

    Subtitle D--Department of Energy Authorization of Appropriations

Sec. 2261. Authorization of appropriations.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

Sec. 2301. Short title.
Sec. 2302. Findings.
Sec. 2303. Department of Energy program.
Sec. 2304. Authorization of appropriations.

Subtitle B--Advanced Fuel Recycling Technology Research and Development 
                                Program

Sec. 2321. Program.

    Subtitle C--Department of Energy Authorization of Appropriations

Sec. 2341. Nuclear Energy Research Initiative.
Sec. 2342. Nuclear Energy Plant Optimization program.
Sec. 2343. Nuclear energy technologies.
Sec. 2344. Authorization of appropriations.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

Sec. 2401. Coal and related technologies programs.

                        Subtitle B--Oil and Gas

Sec. 2421. Petroleum-oil technology.
Sec. 2422. Gas.

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

Sec. 2441. Short title.
Sec. 2442. Definitions.
Sec. 2443. Ultra-deepwater program.
Sec. 2444. National Energy Technology Laboratory.
Sec. 2445. Advisory Committee.
Sec. 2446. Research Organization.
Sec. 2447. Grants.
Sec. 2448. Plan and funding.
Sec. 2449. Audit.
Sec. 2450. Fund.
Sec. 2451. Sunset.

                         Subtitle D--Fuel Cells

Sec. 2461. Fuel cells.

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2481. Authorization of appropriations.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

Sec. 2501. Short title.
Sec. 2502. Findings.
Sec. 2503. Plan for fusion experiment.
Sec. 2504. Plan for fusion energy sciences program.
Sec. 2505. Authorization of appropriations.

                 Subtitle B--Spallation Neutron Source

Sec. 2521. Definition.
Sec. 2522. Authorization of appropriations.
Sec. 2523. Report.
Sec. 2524. Limitations.

      Subtitle C--Facilities, Infrastructure, and User Facilities

Sec. 2541. Definition.
Sec. 2542. Facility and infrastructure support for nonmilitary energy 
              laboratories.
Sec. 2543. User facilities.

            Subtitle D--Advisory Panel on Office of Science

Sec. 2561. Establishment.
Sec. 2562. Report.

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2581. Authorization of appropriations.

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

Sec. 2601. Research, development, demonstration, and commercial 
              application of energy technology programs, projects, and 
              activities.
Sec. 2602. Limits on use of funds.
Sec. 2603. Cost sharing.
Sec. 2604. Limitation on demonstration and commercial application of 
              energy technology.
Sec. 2605. Reprogramming.

               Subtitle B--Other Miscellaneous Provisions

Sec. 2611. Notice of reorganization.
Sec. 2612. Limits on general plant projects.
Sec. 2613. Limits on construction projects.
Sec. 2614. Authority for conceptual and construction design.
Sec. 2615. National Energy Policy Development Group mandated reports.
Sec. 2616. Periodic reviews and assessments.

                               DIVISION C

Sec. 3001. Short title.

                         TITLE I--CONSERVATION

Sec. 3101. Credit for residential solar energy property.
Sec. 3102. Extension and expansion of credit for electricity produced 
              from renewable resources.
Sec. 3103. Credit for qualified stationary fuel cell powerplants.

[[Page H5051]]

Sec. 3104. Alternative motor vehicle credit.
Sec. 3105. Extension of deduction for certain refueling property.
Sec. 3106. Modification of credit for qualified electric vehicles.
Sec. 3107. Tax credit for energy efficient appliances.
Sec. 3108. Credit for energy efficiency improvements to existing homes.
Sec. 3109. Business credit for construction of new energy efficient 
              home.
Sec. 3110. Allowance of deduction for energy efficient commercial 
              building property.
Sec. 3111. Allowance of deduction for qualified energy management 
              devices and retrofitted qualified meters.
Sec. 3112. 3-year applicable recovery period for depreciation of 
              qualified energy management devices.
Sec. 3113. Energy credit for combined heat and power system property.
Sec. 3114. New nonrefundable personal credits allowed against regular 
              and minimum taxes.
Sec. 3115. Phaseout of 4.3-cent motor fuel excise taxes on railroads 
              and inland waterway transportation which remain in 
              general fund.
Sec. 3116. Reduced motor fuel excise tax on certain mixtures of diesel 
              fuel.
Sec. 3117. Credit for investment in qualifying advanced clean coal 
              technology.
Sec. 3118. Credit for production from qualifying advanced clean coal 
              technology.

                         TITLE II--RELIABILITY

Sec. 3201. Natural gas gathering lines treated as 7-year property.
Sec. 3202. Natural gas distribution lines treated as 10-year property.
Sec. 3203. Petroleum refining property treated as 7-year property.
Sec. 3204. Expensing of capital costs incurred in complying with 
              environmental protection agency sulfur regulations.
Sec. 3205. Environmental tax credit.
Sec. 3206. Determination of small refiner exception to oil depletion 
              deduction.
Sec. 3207. Tax-exempt bond financing of certain electric facilities.
Sec. 3208. Sales or dispositions to implement Federal Energy Regulatory 
              Commission or State electric restructuring policy.
Sec. 3209. Distributions of stock to implement Federal Energy 
              Regulatory Commission or State electric restructuring 
              policy.
Sec. 3210. Modifications to special rules for nuclear decommissioning 
              costs.
Sec. 3211. Treatment of certain income of cooperatives.
Sec. 3212. Repeal of requirement of certain approved terminals to offer 
              dyed diesel fuel and kerosene for nontaxable purposes.
Sec. 3213. Arbitrage rules not to apply to prepayments for natural gas.

                         TITLE III--PRODUCTION

Sec. 3301. Oil and gas from marginal wells.
Sec. 3302. Temporary suspension of limitation based on 65 percent of 
              taxable income and extension of suspension of taxable 
              income limit with respect to marginal production.
Sec. 3303. Deduction for delay rental payments.
Sec. 3304. Election to expense geological and geophysical expenditures.
Sec. 3305. 5-year net operating loss carryback for losses attributable 
              to operating mineral interests of oil and gas producers.
Sec. 3306. Extension and modification of credit for producing fuel from 
              a nonconventional source.
Sec. 3307. Business related energy credits allowed against regular and 
              minimum tax.
Sec. 3308. Temporary repeal of alternative minimum tax preference for 
              intangible drilling costs.
Sec. 3309. Allowance of enhanced recovery credit against the 
              alternative minimum tax.
Sec. 3310. Extension of certain benefits for energy-related businesses 
              on Indian reservations.

                               DIVISION D

Sec. 4101. Capacity building for energy-efficient, affordable housing.
Sec. 4102. Increase of CDBG public services cap for energy conservation 
              and efficiency activities.
Sec. 4103. FHA mortgage insurance incentives for energy efficient 
              housing.
Sec. 4104. Public housing capital fund.
Sec. 4105. Grants for energy-conserving improvements for assisted 
              housing.
Sec. 4106. North American Development Bank.

                               DIVISION E

Sec. 5000. Short title.
Sec. 5001. Findings.
Sec. 5002. Definitions.
Sec. 5003. Clean coal power initiative.
Sec. 5004. Cost and performance goals.
Sec. 5005. Authorization of appropriations.
Sec. 5006. Project criteria.
Sec. 5007. Study.

                               DIVISION F

Sec. 6000. Short title.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

Sec. 6101. Study of existing rights-of-way on Federal lands to 
              determine capability to support new pipelines or other 
              transmission facilities.
Sec. 6102. Inventory of energy production potential of all Federal 
              public lands.
Sec. 6103. Review of regulations to eliminate barriers to emerging 
              energy technology.
Sec. 6104. Interagency agreement on environmental review of interstate 
              natural gas pipeline projects.
Sec. 6105. Enhancing energy efficiency in management of Federal lands.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

Sec. 6201. Short title.
Sec. 6202. Lease sales in Western and Central Planning Area of the Gulf 
              of Mexico.
Sec. 6203. Savings clause.
Sec. 6204. Analysis of Gulf of Mexico field size distribution, 
              international competitiveness, and incentives for 
              development.

       Subtitle B--Improvements to Federal Oil and Gas Management

Sec. 6221. Short title.
Sec. 6222. Study of impediments to efficient lease operations.
Sec. 6223. Elimination of unwarranted denials and stays.
Sec. 6224. Limitations on cost recovery for applications.
Sec. 6225. Consultation with Secretary of Agriculture.

                       Subtitle C--Miscellaneous

Sec. 6231. Offshore subsalt development.
Sec. 6232. Program on oil and gas royalties in kind.
Sec. 6233. Marginal well production incentives.
Sec. 6234. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

Sec. 6301. Royalty reduction and relief.
Sec. 6302. Exemption from royalties for direct use of low temperature 
              geothermal energy resources.
Sec. 6303. Amendments relating to leasing on Forest Service lands.
Sec. 6304. Deadline for determination on pending noncompetitive lease 
              applications.
Sec. 6305. Opening of public lands under military jurisdiction.
Sec. 6306. Application of amendments.
Sec. 6307. Review and report to Congress.
Sec. 6308. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.

                          TITLE IV--HYDROPOWER

Sec. 6401. Study and report on increasing electric power production 
              capability of existing facilities.
Sec. 6402. Installation of powerformer at Folsom power plant, 
              California.
Sec. 6403. Study and implementation of increased operational 
              efficiencies in hydroelectric power projects.
Sec. 6404. Shift of project loads to off-peak periods.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Leasing program for lands within the Coastal Plain.
Sec. 6504. Lease sales.
Sec. 6505. Grant of leases by the Secretary.
Sec. 6506. Lease terms and conditions.
Sec. 6507. Coastal Plain environmental protection.
Sec. 6508. Expedited judicial review.
Sec. 6509. Rights-of-way across the Coastal Plain.
Sec. 6510. Conveyance.
Sec. 6511. Local government impact aid and community service 
              assistance.
Sec. 6512. Revenue allocation.

   TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR

Sec. 6601. Energy conservation by the Department of the Interior.

                            TITLE VII--COAL

Sec. 6701. Limitation on fees with respect to coal lease applications 
              and documents.
Sec. 6702. Mining plans.
Sec. 6703. Payment of advance royalties under coal leases.
Sec. 6704. Elimination of deadline for submission of coal lease 
              operation and reclamation plan.

               TITLE VIII--INSULAR AREAS ENERGY SECURITY

Sec. 6801. Insular areas energy security.

                               DIVISION A

     SEC. 100. SHORT TITLE.

       This division may be cited as the ``Energy Advancement and 
     Conservation Act of 2001''.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Section 660 of the Department of Energy Organization Act 
     (42 U.S.C. 7270) is amended as follows:
       (1) By inserting ``(a)'' before ``Appropriations''.
       (2) By inserting at the end the following new subsection:

[[Page H5052]]

       ``(b) There are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002, $950,000,000; for 
     fiscal year 2003, $1,000,000,000; for fiscal year 2004, 
     $1,050,000,000; for fiscal year 2005, $1,100,000,000; and for 
     fiscal year 2006, $1,150,000,000, to carry out energy 
     efficiency activities under the following laws, such sums to 
     remain available until expended:
       ``(1) Energy Policy and Conservation Act, including section 
     256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient 
     products), sections 321 through 346 (42 U.S.C. 6291-6317) 
     (appliances program).
       ``(2) Energy Conservation and Production Act, including 
     sections 301 through 308 (42 U.S.C. 6831-6837) (energy 
     conservation standards for new buildings).
       ``(3) National Energy Conservation Policy Act, including 
     sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy 
     Management Program).
       ``(4) Energy Policy Act of 1992, including sections 103 (42 
     U.S.C. 13458) (energy efficient lighting and building 
     centers), 121 (42 U.S.C. 6292 note) (energy efficiency 
     labeling for windows and window systems), 125 (42 U.S.C. 6292 
     note) (energy efficiency information for commercial office 
     equipment), 126 (42 U.S.C. 6292 note) (energy efficiency 
     information for luminaires), 131 (42 U.S.C. 6348) (energy 
     efficiency in industrial facilities), and 132 (42 U.S.C. 
     6349) (process-oriented industrial energy efficiency).''.

         Subtitle B--Federal Leadership in Energy Conservation

     SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

       (a) Purpose.--Section 542 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8252) is amended by 
     inserting ``, and generally to promote the production, 
     supply, and marketing of energy efficiency products and 
     services and the production, supply, and marketing of 
     unconventional and renewable energy resources'' after ``by 
     the Federal Government''.
       (b) Energy Management Requirements.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended as follows:
       (1) In subsection (a)(1), by striking ``during the fiscal 
     year 1995'' and all that follows through the end and 
     inserting ``during--
       ``(1) fiscal year 1995 is at least 10 percent;
       ``(2) fiscal year 2000 is at least 20 percent;
       ``(3) fiscal year 2005 is at least 30 percent;
       ``(4) fiscal year 2010 is at least 35 percent;
       ``(5) fiscal year 2015 is at least 40 percent; and
       ``(6) fiscal year 2020 is at least 45 percent,

     less than the energy consumption per gross square foot of its 
     Federal buildings in use during fiscal year 1985. To achieve 
     the reductions required by this paragraph, an agency shall 
     make maximum practicable use of energy efficiency products 
     and services and unconventional and renewable energy 
     resources, using guidelines issued by the Secretary under 
     subsection (d) of this section.''.
       (2) In subsection (d), by inserting ``Such guidelines shall 
     include appropriate model technical standards for energy 
     efficiency and unconventional and renewable energy resources 
     products and services. Such standards shall reflect, to the 
     extent practicable, evaluation of both currently marketed and 
     potentially marketable products and services that could be 
     used by agencies to improve energy efficiency and increase 
     unconventional and renewable energy resources.'' after 
     ``implementation of this part.''.
       (3) By adding at the end the following new subsection:
       ``(e) Studies.--To assist in developing the guidelines 
     issued by the Secretary under subsection (d) and in 
     furtherance of the purposes of this section, the Secretary 
     shall conduct studies to identify and encourage the 
     production and marketing of energy efficiency products and 
     services and unconventional and renewable energy resources. 
     To conduct such studies, and to provide grants to accelerate 
     the use of unconventional and renewable energy, there are 
     authorized to be appropriated to the Secretary $20,000,000 
     for each of the fiscal years 2003 through 2010.''.
       (c) Definition.--Section 551 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8259) is amended as 
     follows:
       (1) By striking ``and'' at the end of paragraph (8).
       (2) By striking the period at the end of paragraph (9) and 
     inserting ``; and''.
       (3) By adding at the end the following new paragraph:
       ``(10) the term `unconventional and renewable energy 
     resources' includes renewable energy sources, hydrogen, fuel 
     cells, cogeneration, combined heat and power, heat recovery 
     (including by use of a Stirling heat engine), and distributed 
     generation.''.
       (d) Exclusions From Requirement.--The National Energy 
     Conservation Policy Act (42 U.S.C. 7201 and following) is 
     amended as follows:
       (1) In section 543(a)--
       (A) by striking ``(1) Subject to paragraph (2)'' and 
     inserting ``Subject to subsection (c)''; and
       (B) by striking ``(2) An agency'' and all that follows 
     through ``such exclusion.''.
       (2) By amending subsection (c) of such section 543 to read 
     as follows:
       ``(c) Exclusions.--(1) A Federal building may be excluded 
     from the requirements of subsections (a) and (b) only if--
       ``(A) the President declares the building to require 
     exclusion for national security reasons; and
       ``(B) the agency responsible for the building has--
       ``(i) completed and submitted all federally required energy 
     management reports; and
       ``(ii) achieved compliance with the energy efficiency 
     requirements of this Act, the Energy Policy Act of 1992, 
     Executive Orders, and other Federal law;
       ``(iii) implemented all practical, life cycle cost-
     effective projects in the excluded building.
       ``(2) The President shall only declare buildings described 
     in paragraph (1)(A) to be excluded, not ancillary or nearby 
     facilities that are not in themselves national security 
     facilities.''.
       (3) In section 548(b)(1)(A)--
       (A) by striking ``copy of the''; and
       (B) by striking ``sections 543(a)(2) and 543(c)(3)'' and 
     inserting ``section 543(c)''.
       (e) Acquisition Requirement.--Section 543(b) of such Act is 
     amended--
       (1) in paragraph (1), by striking ``(1) Not'' and inserting 
     ``(1) Except as provided in paragraph (5), not''; and
       (2) by adding at the end the following new paragraph:
       ``(5)(A)(i) Agencies shall select only Energy Star products 
     when available when acquiring energy-using products. For 
     product groups where Energy Star labels are not yet 
     available, agencies shall select products that are in the 
     upper 25 percent of energy efficiency as designated by FEMP. 
     In the case of electric motors of 1 to 500 horsepower, 
     agencies shall select only premium efficiency motors that 
     meet a standard designated by the Secretary, and shall 
     replace (not rewind) failed motors with motors meeting such 
     standard. The Secretary shall designate such standard within 
     90 days of enactment of paragraph, after considering 
     recommendations by the National Electrical Manufacturers 
     Association. The Secretary of Energy shall develop guidelines 
     within 180 days after the enactment of this paragraph for 
     exemptions to this section when equivalent products do not 
     exist, are impractical, or do not meet the agency mission 
     requirements.
       ``(ii) The Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency), with assistance from the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Energy, shall create clear catalogue listings 
     that designate Energy Star products in both print and 
     electronic formats. After any existing federal inventories 
     are exhausted, Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency) shall only replace inventories 
     with energy-using products that are Energy Star, products 
     that are rated in the top 25 percent of energy efficiency, or 
     products that are exempted as designated by FEMP and defined 
     in clause (i).
       ``(iii) Agencies shall incorporate energy-efficient 
     criteria consistent with Energy Star and other FEMP 
     designated energy efficiency levels into all guide 
     specifications and project specifications developed for new 
     construction and renovation, as well as into product 
     specification language developed for Basic Ordering 
     Agreements, Blanket Purchasing Agreements, Government Wide 
     Acquisition Contracts, and all other purchasing procedures.
       ``(iv) The legislative branch shall be subject to this 
     subparagraph to the same extent and in the same manner as are 
     the Federal agencies referred to in section 521(1).
       ``(B) Not later than 6 months after the date of the 
     enactment of this paragraph, the Secretary of Energy shall 
     establish guidelines defining the circumstances under which 
     an agency shall not be required to comply with subparagraph 
     (A). Such circumstances may include the absence of Energy 
     Star products, systems, or designs that serve the purpose of 
     the agency, issues relating to the compatibility of a 
     product, system, or design with existing buildings or 
     equipment, and excessive cost compared to other available and 
     appropriate products, systems, or designs.
       ``(C) Subparagraph (A) shall apply to agency acquisitions 
     occurring on or after October 1, 2002.''.
       (f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is 
     amended by adding at the end the following new subsection:
       ``(f) Metering.--(1) By October 1, 2004, all Federal 
     buildings including buildings owned by the legislative branch 
     and the Federal court system and other energy-using 
     structures shall be metered or submetered in accordance with 
     guidelines established by the Secretary under paragraph (2).
       ``(2) Not later than 6 months after the date of the 
     enactment of this subsection, the Secretary, in consultation 
     with the General Services Administration and representatives 
     from the metering industry, energy services industry, 
     national laboratories, colleges of higher education, and 
     federal facilities energy managers, shall establish 
     guidelines for agencies to carry out paragraph (1). Such 
     guidelines shall take into consideration each of the 
     following:
       ``(A) Cost.
       ``(B) Resources, including personnel, required to maintain, 
     interpret, and report on data so that the meters are 
     continually reviewed.
       ``(C) Energy management potential.
       ``(D) Energy savings.
       ``(E) Utility contract aggregation.
       ``(F) Savings from operations and maintenance.
       ``(3) A building shall be exempt from the requirement of 
     this section to the extent that compliance is deemed 
     impractical by the Secretary. A finding of impracticability

[[Page H5053]]

     shall be based on the same factors as identified in 
     subsection (c) of this section.''.
       (g) Retention of Energy Savings.--Section 546 of such Act 
     (42 U.S.C. 8256) is amended by adding at the end the 
     following new subsection:
       ``(e) Retention of Energy Savings.--An agency may retain 
     any funds appropriated to that agency for energy 
     expenditures, at buildings subject to the requirements of 
     section 543(a) and (b), that are not made because of energy 
     savings. Except as otherwise provided by law, such funds may 
     be used only for energy efficiency or unconventional and 
     renewable energy resources projects.''.
       (h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is 
     amended as follows:
       (1) In subsection (a)--
       (A) by inserting ``in accordance with guidelines 
     established by and'' after ``to the Secretary,'';
       (B) by striking ``and'' at the end of paragraph (1);
       (C) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (D) by adding at the end the following new paragraph:
       ``(3) an energy emergency response plan developed by the 
     agency.''.
       (2) In subsection (b)--
       (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) all information transmitted to the Secretary under 
     subsection (a).''.
       (3) By amending subsection (c) to read as follows:
       ``(c) Agency Reports to Congress.--Each agency shall 
     annually report to the Congress, as part of the agency's 
     annual budget request, on all of the agency's activities 
     implementing any Federal energy management requirement.''.
       (i) Inspector General Energy Audits.--Section 160(c) of the 
     Energy Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by 
     striking ``is encouraged to conduct periodic'' and inserting 
     ``shall conduct periodic''.
       (j) Federal Energy Management Reviews.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended by adding at the end the following:
       ``(g) Priority Response Reviews.--Each agency shall--
       ``(1) not later than 9 months after the date of the 
     enactment of this subsection, undertake a comprehensive 
     review of all practicable measures for--
       ``(A) increasing energy and water conservation, and
       ``(B) using renewable energy sources; and
       ``(2) not later than 180 days after completing the review, 
     develop plans to achieve not less than 50 percent of the 
     potential efficiency and renewable savings identified in the 
     review.

     The agency shall implement such measures as soon thereafter 
     as is practicable, consistent with compliance with the 
     requirements of this section.''.

     SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO 
                   FEDERAL ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Cost Savings From Operation and Maintenance 
     Efficiencies in Replacement Facilities.--Section 801(a) of 
     the National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)) is amended by adding at the end the following new 
     paragraph:
       ``(3)(A) In the case of an energy savings contract or 
     energy savings performance contract providing for energy 
     savings through the construction and operation of one or more 
     buildings or facilities to replace one or more existing 
     buildings or facilities, benefits ancillary to the purpose of 
     such contract under paragraph (1) may include savings 
     resulting from reduced costs of operation and maintenance at 
     such replacement buildings or facilities when compared with 
     costs of operation and maintenance at the buildings or 
     facilities being replaced, established through a methodology 
     set forth in the contract.
       ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
     payments by an agency under an energy savings contract or 
     energy savings performance contract referred to in 
     subparagraph (A) may take into account (through the 
     procedures developed pursuant to this section) savings 
     resulting from reduced costs of operation and maintenance as 
     described in that subparagraph.''.
       (b) Expansion of Definition of Energy Savings to Include 
     Water and Replacement Facilities.--
       (1) Energy savings.--Section 804(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to 
     read as follows:
       ``(2)(A) The term `energy savings' means a reduction in the 
     cost of energy or water, from a base cost established through 
     a methodology set forth in the contract, used in an existing 
     federally owned building or buildings or other federally 
     owned facilities as a result of--
       ``(i) the lease or purchase of operating equipment, 
     improvements, altered operation and maintenance, or technical 
     services;
       ``(ii) the increased efficient use of existing energy 
     sources by solar and ground source geothermal resources, 
     cogeneration or heat recovery (including by the use of a 
     Stirling heat engine), excluding any cogeneration process for 
     other than a federally owned building or buildings or other 
     federally owned facilities; or
       ``(iii) the increased efficient use of existing water 
     sources.
       ``(B) The term `energy savings' also means, in the case of 
     a replacement building or facility described in section 
     801(a)(3), a reduction in the cost of energy, from a base 
     cost established through a methodology set forth in the 
     contract, that would otherwise be utilized in one or more 
     existing federally owned buildings or other federally owned 
     facilities by reason of the construction and operation of the 
     replacement building or facility.''.
       (2) Energy savings contract.--Section 804(3) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) 
     is amended to read as follows:
       ``(3) The terms `energy savings contract' and `energy 
     savings performance contract' mean a contract which provides 
     for--
       ``(A) the performance of services for the design, 
     acquisition, installation, testing, operation, and, where 
     appropriate, maintenance and repair, of an identified energy 
     or water conservation measure or series of measures at one or 
     more locations; or
       ``(B) energy savings through the construction and operation 
     of one or more buildings or facilities to replace one or more 
     existing buildings or facilities.''.
       (3) Energy or water conservation measure.--Section 804(4) 
     of the National Energy Conservation Policy Act (42 U.S.C. 
     8287c(4)) is amended to read as follows:
       ``(4) The term `energy or water conservation measure' 
     means--
       ``(A) an energy conservation measure, as defined in section 
     551(4) (42 U.S.C. 8259(4)); or
       ``(B) a water conservation measure that improves water 
     efficiency, is life cycle cost effective, and involves water 
     conservation, water recycling or reuse, improvements in 
     operation or maintenance efficiencies, retrofit activities, 
     or other related activities, not at a Federal hydroelectric 
     facility.''.
       (4) Conforming amendment.--Section 801(a)(2)(C) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)(C)) is amended by inserting ``or water'' after 
     ``financing energy''.
       (c) Extension of Authority.--Section 801(c) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8287(c)) is 
     repealed.
       (d) Contracting and Auditing.--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 new 
     subparagraph:
       ``(E) A Federal agency shall engage in contracting and 
     auditing to implement energy savings performance contracts as 
     necessary and appropriate to ensure compliance with the 
     requirements of this Act, particularly the energy efficiency 
     requirements of section 543.''.

     SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHORITY TO ENTER 
                   UTILITY INCENTIVE PROGRAMS FOR ENERGY SAVINGS.

       Section 546(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8256(c)) is amended as follows:
       (1) In paragraph (3) by adding at the end the following: 
     ``Such a utility incentive program may include a contract or 
     contract term designed to provide for cost-effective 
     electricity demand management, energy efficiency, or water 
     conservation.''.
       (2) By adding at the end of the following new paragraphs:
       ``(6) A utility incentive program may include a contract or 
     contract term for a reduction in the energy, from a base cost 
     established through a methodology set forth in such a 
     contract, that would otherwise be utilized in one or more 
     federally owned buildings or other federally owned facilities 
     by reason of the construction or operation of one or more 
     replacement buildings or facilities, as well as benefits 
     ancillary to the purpose of such contract or contract term, 
     including savings resulting from reduced costs of operation 
     and maintenance at new or additional buildings or facilities 
     when compared with the costs of operation and maintenance at 
     existing buildings or facilities.
       ``(7) Federal agencies are encouraged to participate in 
     State or regional demand side reduction programs, including 
     those operated by wholesale market institutions such as 
     independent system operators, regional transmission 
     organizations and other entities. The availability of such 
     programs, and the savings resulting from such participation, 
     should be included in the evaluation of energy options for 
     Federal facilities.''.

     SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT PUMP 
                   EFFICIENCY.

       (a) Requirement.--Federal agencies shall be required to 
     acquire central air conditioners and heat pumps that meet or 
     exceed the standards established under subsection (b) or (c) 
     in the case of all central air conditioners and heat pumps 
     acquired after the date of enactment of this Act.
       (b) Standards.--The standards referred to in subsection (a) 
     are the following:
       (1) For air-cooled air conditioners with cooling capacities 
     of less than 65,000 Btu/hour, a Seasonal Energy Efficiency 
     Ratio of 12.0.
       (2) For air-source heat pumps with cooling capacities less 
     than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 
     12 SEER, and a Heating Seasonal Performance Factor of 7.4.
       (c) Modified Standards.--The Secretary of Energy may 
     establish, after appropriate notice and comment, revised 
     standards providing for reduced energy consumption or 
     increased energy efficiency of central air conditioners and 
     heat pumps acquired by the Federal Government, but may not 
     establish standards less rigorous than those established by 
     subsection (b).

[[Page H5054]]

       (d) Definitions.--For purposes of this section, the terms 
     ``Energy Efficiency Ratio'', ``Seasonal Energy Efficiency 
     Ratio'', ``Heating Seasonal Performance Factor'', and 
     ``Coefficient of Performance'' have the meanings used for 
     those terms in Appendix M to Subpart B of Part 430 of title 
     10 of the Code of Federal Regulations, as in effect on May 
     24, 2001.
       (e) Exemptions.--An agency shall be exempt from the 
     requirements of this section with respect to air conditioner 
     or heat pump purchases for particular uses where the agency 
     head determines that purchase of a air conditioner or heat 
     pump for such use would be impractical. A finding of 
     impracticability shall be based on whether--
       (1) the energy savings pay-back period for such purchase 
     would be less than 10 years;
       (2) space constraints or other technical factors would make 
     compliance with this section cost-prohibitive; or
       (3) in the case of the Departments of Defense and Energy, 
     compliance with this section would be inconsistent with the 
     proper discharge of national security functions.

     SEC. 125. ADVANCED BUILDING EFFICIENCY TESTBED.

       (a) Establishment.--The Secretary of Energy 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 government and industry building efficiency 
     concepts, and demonstrate the ability of next generation 
     buildings to support individual and organizational 
     productivity and health as well as flexibility and 
     technological change to improve environmental sustainability.
       (b) Participants.--The program established under subsection 
     (a) shall be led by a university having demonstrated 
     experience with the application of intelligent workplaces and 
     advanced building systems in improving the quality of built 
     environments. Such university shall also have the ability to 
     combine the expertise from more than 12 academic fields, 
     including 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 $18,000,000 for fiscal year 2002, to remain 
     available until expended, of which $6,000,000 shall be 
     provided to the lead university described in subsection (b), 
     and the remainder shall be provided equally to each of the 
     other participants referred to in subsection (b).

     SEC. 126. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.

       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:
       ``(h) Use of Interval Data in Federal Buildings.--Not later 
     than January 1, 2003, each agency shall utilize, to the 
     maximum extent practicable, for the purposes of efficient use 
     of energy and reduction in the cost of electricity consumed 
     in its Federal buildings, interval consumption data that 
     measure on a real time or daily basis consumption of 
     electricity in its Federal buildings. To meet the 
     requirements of this subsection each agency shall prepare and 
     submit at the earliest opportunity pursuant to section 548(a) 
     to the Secretary, a plan describing how the agency intends to 
     meet such requirements, including how it will designate 
     personnel primarily responsible for achieving such 
     requirements, and otherwise implement this subsection.''.

     SEC. 127. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT 
                   PROGRAM.

       Within 180 days after the date of the enactment of this 
     Act, the Secretary of Energy shall complete a review of the 
     Energy Savings Performance Contract program to identify 
     statutory, regulatory, and administrative obstacles that 
     prevent Federal agencies from fully utilizing the program. In 
     addition, this review shall identify all areas for increasing 
     program flexibility and effectiveness, including audit and 
     measurement verification requirements, accounting for energy 
     use in determining savings, contracting requirements, and 
     energy efficiency services covered. The Secretary shall 
     report these findings to the Committee on Energy and Commerce 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate, and shall implement 
     identified administrative and regulatory changes to increase 
     program flexibility and effectiveness to the extent that such 
     changes are consistent with statutory authority.

     SEC. 128. CAPITOL COMPLEX.

       (a) 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.
       (b) Authorization.--There is authorized to be appropriated 
     to the Architect of the Capitol to carry out this section, 
     not more than $2,000,000 for fiscal years after the enactment 
     of this Act.

                       Subtitle C--State Programs

     SEC. 131. AMENDMENTS TO 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 three 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 by inserting ``Each State energy conservation plan 
     with respect to which assistance is made available under this 
     part on or after the date of the enactment of Energy 
     Advancement and Conservation Act of 2001, 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 the 
     calendar year 2010 as compared to the calendar year 1990, and 
     may contain interim goals.'' after ``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 ``$75,000,000 for 
     fiscal year 2002, $100,000,000 for fiscal years 2003 and 
     2004, $125,000,000 for fiscal year 2005''.

     SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION PROGRAM FOR 
                   SCHOOLS AND HOSPITALS.

       Section 397 of the Energy Policy and Conservation Act (42 
     U.S.C. 6371f) is amended by striking ``2003'' and inserting 
     ``2010''.

     SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

       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 ``$273,000,000 for fiscal year 2002, $325,000,000 
     for fiscal year 2003, $400,000,000 for fiscal year 2004, and 
     $500,000,000 for fiscal year 2005''.

     SEC. 134. LIHEAP.

       (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 the first sentence and 
     inserting the following: ``There are authorized to be 
     appropriated to carry out the provisions of this title (other 
     than section 2607A), $3,400,000,000 for each of fiscal years 
     2001 through 2005.''.
       (b) GAO Study.--The Comptroller General of the United 
     States shall conduct a study to determine--
       (1) the extent to which Low-Income Home Energy Assistance 
     (LIHEAP) and other government energy subsidies paid to 
     consumers discourage energy conservation and energy 
     efficiency investments; and
       (2) the extent to which the goals of conservation and 
     assistance for low income households could be simultaneously 
     achieved through cash income supplements that do not 
     specifically target energy, thereby maintaining incentives 
     for wise use of expensive forms of energy, or through other 
     means.

     SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.

       (a) Program Establishment and Administration.--
       (1) Establishment.--There is established in the Department 
     of Energy the High Performance Public Buildings Program (in 
     this section referred to as the ``Program'').
       (2) In general.--The Secretary of Energy may, through the 
     Program, make grants--
       (A) to assist units of local government in the production, 
     through construction or renovation of buildings and 
     facilities they own and operate, of high performance public 
     buildings and facilities that are healthful, productive, 
     energy efficient, and environmentally sound;
       (B) to State energy offices to administer the program of 
     assistance to units of local government pursuant to this 
     section; and
       (C) to State energy offices to promote participation by 
     units of local government in the Program.
       (3) Grants to assist units of local government.--Grants 
     under paragraph (2)(A) for new public buildings shall be used 
     to achieve energy efficiency performance that reduces energy 
     use at least 30 percent below that of a public building 
     constructed in compliance with standards prescribed in 
     Chapter 8 of the 2000 International Energy Conservation Code, 
     or a similar State code intended to achieve substantially 
     equivalent results. Grants under paragraph (2)(A) for 
     existing public buildings shall be used to achieve energy 
     efficiency performance that reduces energy use below the 
     public building baseline consumption, assuming a 3-year, 
     weather-normalized average for calculating such baseline. 
     Grants under paragraph (2)(A) shall be made to units of local 
     government that have--
       (A) demonstrated a need for such grants in order to respond 
     appropriately to increasing

[[Page H5055]]

     population or to make major investments in renovation of 
     public buildings; and
       (B) made a commitment to use the grant funds to develop 
     high performance public buildings in accordance with a plan 
     developed and approved pursuant to paragraph (5)(A).
       (4) Other grants.--
       (A) Grants for administration.--Grants under paragraph 
     (2)(B) shall be used to evaluate compliance by units of local 
     government with the requirements of this section, and in 
     addition may be used for--
       (i) distributing information and materials to clearly 
     define and promote the development of high performance public 
     buildings for both new and existing facilities;
       (ii) organizing and conducting programs for local 
     government personnel, architects, engineers, and others to 
     advance the concepts of high performance public buildings;
       (iii) obtaining technical services and assistance in 
     planning and designing high performance public buildings; and
       (iv) collecting and monitoring data and information 
     pertaining to the high performance public building projects.
       (B) Grants to promote participation.--Grants under 
     paragraph (2)(C) may be used for promotional and marketing 
     activities, including facilitating private and public 
     financing, promoting the use of energy service companies, 
     working with public building users, and communities, and 
     coordinating public benefit programs.
       (5) Implementation.--
       (A) Plans.--A grant under paragraph (2)(A) shall be 
     provided only to a unit of local government that, in 
     consultation with its State office of energy, has developed a 
     plan that the State energy office determines to be feasible 
     and appropriate in order to achieve the purposes for which 
     such grants are made.
       (B) Supplementing grant funds.--State energy offices shall 
     encourage qualifying units of local government to supplement 
     their grant funds with funds from other sources in the 
     implementation of their plans.
       (b) Allocation of Funds.--
       (1) In general.--Except as provided in paragraph (3), funds 
     appropriated to carry out this section shall be provided to 
     State energy offices.
       (2) Purposes.--Except as provided in paragraph (3), funds 
     appropriated to carry out this section shall be allocated as 
     follows:
       (A) Seventy percent shall be used to make grants under 
     subsection (a)(2)(A).
       (B) Fifteen percent shall be used to make grants under 
     subsection (a)(2)(B).
       (C) Fifteen percent shall be used to make grants under 
     subsection (a)(2)(C).
       (3) Other funds.--The Secretary of Energy may retain not to 
     exceed $300,000 per year from amounts appropriated under 
     subsection (c) to assist State energy offices in coordinating 
     and implementing the Program. Such funds may be used to 
     develop reference materials to further define the principles 
     and criteria to achieve high performance public buildings.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy to carry out 
     this section such sums as may be necessary for each of the 
     fiscal years 2002 through 2010.
       (d) Report to Congress.--The Secretary of Energy shall 
     conduct a biennial review of State actions implementing this 
     section, and the Secretary shall report to Congress on the 
     results of such reviews. In conducting such reviews, the 
     Secretary shall assess the effectiveness of the calculation 
     procedures used by the States in establishing eligibility of 
     units of local government for funding under this section, and 
     may assess other aspects of the State program to determine 
     whether they have been effectively implemented.
       (e) Definitions.--For purposes of this section:
       (1) High performance public building.--The term ``high 
     performance public building'' means a public building which, 
     in its design, construction, operation, and maintenance, 
     maximizes use of unconventional and renewable energy 
     resources and energy efficiency practices, is cost-effective 
     on a life cycle basis, uses affordable, environmentally 
     preferable, durable materials, enhances indoor environmental 
     quality, protects and conserves water, and optimizes site 
     potential.
       (2) Renewable energy.--The term ``renewable energy'' means 
     energy produced by solar, wind, geothermal, hydroelectric, or 
     biomass power.
       (3) Unconventional and renewable energy resources.--The 
     term ``unconventional and renewable energy resources'' means 
     renewable energy, hydrogen, fuel cells, cogeneration, 
     combined heat and power, heat recovery (including by use of a 
     Stirling heat engine), and distributed generation.

          Subtitle D--Energy Efficiency for Consumer Products

     SEC. 141. ENERGY STAR PROGRAM.

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

     ``SEC. 324A. ENERGY STAR PROGRAM.

       ``(a) In General.--There is established at the Department 
     of Energy and the Environmental Protection Agency a program 
     to identify and promote energy-efficient products and 
     buildings in order to reduce energy consumption, improve 
     energy security, and reduce pollution through labeling of 
     products and buildings that meet the highest energy 
     efficiency standards. Responsibilities under the program 
     shall be divided between the Department of Energy and the 
     Environmental Protection Agency consistent with the terms of 
     agreements between the two agencies. The Administrator and 
     the Secretary shall--
       ``(1) promote Energy Star compliant technologies as the 
     preferred technologies in the marketplace for achieving 
     energy efficiency and to reduce pollution;
       ``(2) work to enhance public awareness of the Energy Star 
     label; and
       ``(3) preserve the integrity of the Energy Star label.

     For the purposes of carrying out this section, there is 
     authorized to be appropriated for fiscal years 2002 through 
     2006 such sums as may be necessary, to remain available until 
     expended.
       ``(b) Study of Certain Products and Buildings.--Within 180 
     days after the date of enactment of this section, the 
     Secretary and the Administrator, consistent with the terms of 
     agreements between the two agencies (including existing 
     agreements with respect to which agency shall handle a 
     particular product or building), shall determine whether the 
     Energy Star label should be extended to additional products 
     and buildings, including the following:
       ``(1) Air cleaners.
       ``(2) Ceiling fans.
       ``(3) Light commercial heating and cooling products.
       ``(4) Reach-in refrigerators and freezers.
       ``(5) Telephony.
       ``(6) Vending machines.
       ``(7) Residential water heaters.
       ``(8) Refrigerated beverage merchandisers.
       ``(9) Commercial ice makers.
       ``(10) School buildings.
       ``(11) Retail buildings.
       ``(12) Health care facilities.
       ``(13) Homes.
       ``(14) Hotels and other commercial lodging facilities.
       ``(15) Restaurants and other food service facilities.
       ``(16) Solar water heaters.
       ``(17) Building-integrated photovoltaic systems.
       ``(18) Reflective pigment coatings.
       ``(19) Windows.
       ``(20) Boilers.
       ``(21) Devices to extend the life of motor vehicle oil.
       ``(c) Cool Roofing.--In determining whether the Energy Star 
     label should be extended to roofing products, the Secretary 
     and the Administrator shall work with the roofing products 
     industry to determine the appropriate solar reflective index 
     of roofing products.''.
       (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. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.

       (a) Study.--Section 324(e) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(e)) is amended as follows:
       (1) By inserting ``(1)'' before ``The Secretary, in 
     consultation''.
       (2) By redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively.
       (3) By adding the following new paragraph at the end:
       ``(2) The Secretary shall make recommendations to the 
     Commission within 180 days of the date of enactment of this 
     paragraph regarding labeling of consumer products that are 
     not covered products in accordance with this section, where 
     such labeling is likely to assist consumers in making 
     purchasing decisions and is technologically and economically 
     feasible.''.
       (b) Noncovered Products.--Section 324(a)(2) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended 
     by adding the following at the end:
       ``(F) Not later than one year after the date of enactment 
     of this subparagraph, the Commission shall initiate a 
     rulemaking to prescribe labeling rules under this section 
     applicable to consumer products that are not covered products 
     if it determines that labeling of such products is likely to 
     assist consumers in making purchasing decisions and is 
     technologically and economically feasible.
       ``(G) Not later than three 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 label that would improve the 
     effectiveness of the label. Such rulemaking shall be 
     completed within 15 months of the date of enactment of this 
     subparagraph.''.

     SEC. 143. APPLIANCE STANDARDS.

       (a) Standards for Household Appliances in Standby Mode.--
     (1) Section 325 of the Energy Policy and Conservation Act (42 
     U.S.C. 6295) is amended by adding at the end the following:
       ``(u) Standby Mode Electric Energy Consumption by Household 
     Appliances.--(1) In this subsection:
       ``(A) The term `household appliance' means any device that 
     uses household electric current, operates in a standby mode, 
     and is identified by the Secretary as a major consumer of 
     electricity in standby mode, except digital televisions, 
     digital set top boxes, digital video recorders, any product 
     recognized under the Energy Star program, any product

[[Page H5056]]

     that was on the date of enactment of this Act subject to an 
     energy conservation standard under this section, and any 
     product regarding which the Secretary finds that the expected 
     additional cost to the consumer of purchasing such product as 
     a result of complying with a standard established under this 
     section is not economically justified within the meaning of 
     subsection (o).
       ``(B) The term `standby mode' means a mode in which a 
     household appliance consumes the least amount of electric 
     energy that the household appliance is capable of consuming 
     without being completely switched off (provided that, the 
     amount of electric energy consumed in such mode is 
     substantially less than the amount the household appliance 
     would consume in its normal operational mode).
       ``(C) The term `major consumer of electricity in standby 
     mode' means a product for which a standard prescribed under 
     this section would result in substantial energy savings as 
     compared to energy savings achieved or expected to be 
     achieved by standards established by the Secretary under 
     subsections (o) and (p) of this section for products that 
     were, at the time of enactment of this subsection, covered 
     products under this section.
       ``(2)(A) Except as provided in subparagraph (B), a 
     household appliance that is manufactured in, or imported for 
     sale in, the United States on or after the date that is 2 
     years after the date of enactment of this subsection shall 
     not consume in standby mode more than 1 watt.
       ``(B) In the case of analog televisions, the Secretary 
     shall prescribe, on or after the date that is 2 years after 
     the date of enactment of this subsection, in accordance with 
     subsections (o) and (p) of section 325, an energy 
     conservation standard that is technologically feasible and 
     economically justified under section 325(o)(2)(A) (in lieu of 
     the 1 watt standard under subparagraph (A)).
       ``(3)(A) A manufacturer or importer of a household 
     appliance may submit to the Secretary an application for an 
     exemption of the household appliance from the standard under 
     paragraph (2).
       ``(B) The Secretary shall grant an exemption for a 
     household appliance for which an application is made under 
     subparagraph (A) if the applicant provides evidence showing 
     that, and the Secretary determines that--
       ``(i) it is not technically feasible to modify the 
     household appliance to enable the household appliance to meet 
     the standard;
       ``(ii) the standard is incompatible with an energy 
     efficiency standard applicable to the household appliance 
     under another subsection; or
       ``(iii) the cost of electricity that a typical consumer 
     would save in operating the household appliance meeting the 
     standard would not equal the increase in the price of the 
     household appliance that would be attributable to the 
     modifications that would be necessary to enable the household 
     appliance to meet the standard by the earlier of--
       ``(I) the date that is 7 years after the date of purchase 
     of the household appliance; or
       ``(II) the end of the useful life of the household 
     appliance.
       ``(C) If the Secretary determines that it is not 
     technically feasible to modify a household appliance to meet 
     the standard under paragraph (2), the Secretary shall 
     establish a different standard for the household appliance in 
     accordance with the criteria under subsection (l).
       ``(4)(A) Not later than 1 year after the date of enactment 
     of this subsection, the Secretary shall establish a test 
     procedure for determining the amount of consumption of power 
     by a household appliance operating in standby mode.
       ``(B) In establishing the test procedure, the Secretary 
     shall consider--
       ``(i) international test procedures under development;
       ``(ii) test procedures used in connection with the Energy 
     Star program; and
       ``(iii) test procedures used for measuring power 
     consumption in standby mode in other countries.
       ``(5) Further reduction of standby power consumption.--The 
     Secretary shall provide technical assistance to manufacturers 
     in achieving further reductions in standby mode electric 
     energy consumption by household appliances.
       ``(v) Standby Mode Electric Energy Consumption by Digital 
     Televisions, Digital Set Top Boxes, and Digital Video 
     Recorders.--The Secretary shall initiate on January 1, 2007 a 
     rulemaking to prescribe, in accordance with subsections (o) 
     and (p), an energy conservation standard of standby mode 
     electric energy consumption by digital television sets, 
     digital set top boxes, and digital video recorders. The 
     Secretary shall issue a final rule prescribing such standards 
     not later than 18 months thereafter. In determining whether a 
     standard under this section is technologically feasible and 
     economically justified under section 325(o)(2)(A), the 
     Secretary shall consider the potential effects on market 
     penetration by digital products covered under this section, 
     and shall consider any recommendations by the FCC regarding 
     such effects.''.
       (2) Section 325(o)(3) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6295(n)(1)) is amended by inserting at the end 
     of the paragraph the following: ``Notwithstanding any 
     provision of this part, the Secretary shall not amend a 
     standard established under subsection (u) or (v) of this 
     section.''.
       (b) Standards for Noncovered Products.--Section 325(m) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6295(m)) is 
     amended as follows:
       (1) Inserting ``(1)'' before ``After''.
       (2) Inserting the following at the end:
       (2) ``Not later than one year after the date of enactment 
     of the Energy Advancement and Conservation Act of 2001, the 
     Secretary shall conduct a rulemaking to determine whether 
     consumer products not classified as a covered product under 
     section 322(a)(1) through (18) meet the criteria of section 
     322(b)(1) and is a major consumer of electricity. If the 
     Secretary finds that a consumer product not classified as a 
     covered product meets the criteria of section 322(b)(1), he 
     shall prescribe, in accordance with subsections (o) and (p), 
     an energy conservation standard for such consumer product, if 
     such standard is reasonably probable to be technologically 
     feasible and economically justified within the meaning of 
     subsection (o)(2)(A). As used in this paragraph, the term 
     `major consumer of electricity' means a product for which a 
     standard prescribed under this section would result in 
     substantial aggregate energy savings as compared to energy 
     savings achieved or expected to be achieved by standards 
     established by the Secretary under paragraphs (o) and (p) of 
     this section for products that were, at the time of enactment 
     of this paragraph, covered products under this section.''.
       (c) Consumer Education on Energy Efficiency Benefits of Air 
     Conditioning, Heating and Ventilation Maintenance.--Section 
     337 of the Energy Policy and Conservation Act (42 U.S.C. 
     6307) is amended by adding the following new subsection after 
     subsection (b):
       ``(c) HVAC Maintenance.--For the purpose of ensuring that 
     installed air conditioning and heating systems operate at 
     their maximum rated efficiency levels, the Secretary shall, 
     within 180 days of the date of enactment of this subsection, 
     develop and implement a public education campaign to educate 
     homeowners and small business owners concerning the energy 
     savings resulting from regularly scheduled maintenance of air 
     conditioning, heating, and ventilating systems. In developing 
     and implementing this campaign, the Secretary shall consider 
     support by the Department of public education programs 
     sponsored by trade and professional and energy efficiency 
     organizations. The public service information shall provide 
     sufficient information to allow consumers to make informed 
     choices from among professional, licensed (where State or 
     local licensing is required) contractors. There are 
     authorized to be appropriated to carry out this subsection 
     $5,000,000 for fiscal years 2002 and 2003 in addition to 
     amounts otherwise appropriated in this part.''.
       (d) Efficiency Standards for Furnace Fans, Ceiling Fans, 
     and Cold Drink Vending Machines..--
       (1) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) is amended by adding the 
     following at the end thereof:
       ``(32) The term `residential furnace fan' means an electric 
     fan installed as part of a furnace for purposes of 
     circulating air through the system air filters, the heat 
     exchangers or heating elements of the furnace, and the duct 
     work.
       ``(33) The terms `residential central air conditioner fan' 
     and `heat pump circulation fan' mean an electric fan 
     installed as part of a central air conditioner or heat pump 
     for purposes of circulating air through the system air 
     filters, the heat exchangers of the air conditioner or heat 
     pump, and the duct work.
       ``(34) The term `suspended ceiling fan' means a fan 
     intended to be mounted to a ceiling outlet box, ceiling 
     building structure, or to a vertical rod suspended from the 
     ceiling, and which as blades which rotate below the ceiling 
     and consists of an electric motor, fan blades (which rotate 
     in a direction parallel to the floor), an optional lighting 
     kit, and one or more electrical controls (integral or remote) 
     governing fan speed and lighting operation.
       ``(35) The term `refrigerated bottled or canned beverage 
     vending machine' means a machine that cools bottled or canned 
     beverages and dispenses them upon payment.''.
       (2) Testing Requirements.--Section 323 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293) is amended by adding 
     the following at the end thereof:
       ``(f) Additional Consumer Products.--The Secretary shall 
     within 18 months after the date of enactment of this 
     subsection prescribe testing requirements for residential 
     furnace fans, residential central air conditioner fans, heat 
     pump circulation fans, suspended ceiling fans, and 
     refrigerated bottled or canned beverage vending machines. 
     Such testing requirements shall be based on existing test 
     procedures used in industry to the extent practical and 
     reasonable. In the case of residential furnace fans, 
     residential central air conditioner fans, heat pump 
     circulation fans, and suspended ceiling fans, such test 
     procedures shall include efficiency at both maximum output 
     and at an output no more than 50 percent of the maximum 
     output.''.
       (3) Standards for Additional Consumer Products.--Section 
     325 of the Energy Policy and Conservation Act (42 U.S.C. 
     6295) is amended by adding the following at the end thereof:
       ``(w) Residential Furnace Fans, Central Air and Heat Pump 
     Circulation Fans, Suspended Ceiling Fans, and Vending 
     Machines.--(1) The Secretary shall, within 18 months after 
     the date of enactment of this subsection, assess the current 
     and projected future market for residential furnace fans,

[[Page H5057]]

     residential central air conditioner and heat pump circulation 
     fans, suspended ceiling fans, and refrigerated bottled or 
     canned beverage vending machines. This assessment shall 
     include an examination of the types of products sold, the 
     number of products in use, annual sales of these products, 
     energy used by these products sold, the number of products in 
     use, annual sales of these products, energy used by these 
     products, estimates of the potential energy savings from 
     specific technical improvements to these products, and an 
     examination of the cost-effectiveness of these improvements. 
     Prior to the end of this time period, the Secretary shall 
     hold an initial scoping workshop to discuss and receive input 
     to plans for developing minimum efficiency standards for 
     these products.
       ``(2) The Secretary shall within 24 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 residential furnace fans, 
     residential central air conditioner and heat pump circulation 
     fans, suspended ceiling fans, and refrigerated bottled or 
     canned beverage vending machines. In establishing these 
     standards, the Secretary shall use the criteria and 
     procedures contained in subsections (l) and (m). Any standard 
     prescribed under this section shall apply to products 
     manufactured 36 months after the date such rule is 
     published.''.
       (4) Labeling.--Section 324(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)) is amended by adding the 
     following at the end thereof:
       ``(5) The Secretary shall within 6 months after the date on 
     which energy conservation standards are prescribed by the 
     Secretary for covered products referred to in section 325(w), 
     prescribe, by rule, labeling requirements for such products. 
     These requirements shall take effect on the same date as the 
     standards prescribed pursuant to section 325(w).''.
       (5) Covered Products.--Section 322(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6292(a)) is amended by 
     redesignating paragraph (19) as paragraph (20) and by 
     inserting after paragraph (18) the following:
       ``(19) Beginning on the effective date for standards 
     established pursuant to subsection (v) of section 325, each 
     product referred to in such subsection (v).''.

                 Subtitle E--Energy Efficient Vehicles

     SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.

       (a) In General.--Notwithstanding section 102(a)(1) of title 
     23, United States Code, a State may, for the purpose of 
     promoting energy conservation, permit a vehicle with fewer 
     than 2 occupants to operate in high occupancy vehicle lanes 
     if such vehicle is a hybrid vehicle or is fueled by an 
     alternative fuel.
       (b) Hybrid Vehicle Defined.--In this section, the term 
     ``hybrid vehicle'' means a motor vehicle--
       (1) which draws propulsion energy from onboard sources of 
     stored energy which are both--
       (A) an internal combustion or heat engine using combustible 
     fuel; and
       (B) a rechargeable energy storage system;
       (2) which, in the case of a passenger automobile or light 
     truck--
       (A) for 2002 and later model vehicles, has received a 
     certificate of conformity under section 206 of the Clean Air 
     Act (42 U.S.C. 7525) and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) 
     for that make and model year; and
       (B) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets the 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 (42 U.S.C. 7521(i)) for 
     that make and model year vehicle; and
       (3) which is made by a manufacturer.
       (c) Alternative Fuel Defined.--In this section, the term 
     ``alternative fuel'' has the meaning such term has under 
     section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(2)).

     SEC. 152. RAILROAD EFFICIENCY.

       (a) Locomotive Technology Demonstration.--The Secretary of 
     Energy shall establish a public-private research partnership 
     with railroad carriers, locomotive manufacturers, and a 
     world-class research and test center dedicated to the 
     advancement of railroad technology, efficiency, and safety 
     that is owned by the Federal Railroad Administration and 
     operated in the private sector, for the development and 
     demonstration of locomotive technologies that increase fuel 
     economy and reduce emissions.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy $25,000,000 for 
     fiscal year 2002, $30,000,000 for fiscal year 2003, and 
     $35,000,000 for fiscal year 2004 for carrying out this 
     section.

     SEC. 153. BIODIESEL FUEL USE CREDITS.

       Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 
     13220(c)) is amended--
       (1) by striking ``Not'' in the subsection heading; and
       (2) by striking ``not''.

     SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.

       Within 90 days after the enactment of this section, the 
     Administrator of the Environmental Protection Agency is 
     directed to commence a review of the Agency's policies 
     regarding the use of mobile to stationary source trading of 
     emission credits under the Clean Air Act to determine whether 
     such trading can provide both nonattainment and attainment 
     areas with additional flexibility in achieving and 
     maintaining healthy air quality and increasing use of 
     alternative fuel and advanced technology vehicles, thereby 
     reducing United States dependence on foreign oil.

                      Subtitle F--Other Provisions

     SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO 
                   EMERGING ENERGY TECHNOLOGY.

       (a) In General.--Each Federal agency shall carry out a 
     review of its regulations and standards to determine those 
     that act as a barrier to market entry for emerging energy-
     efficient technologies, including, but not limited to, fuel 
     cells, combined heat and power, and distributed generation 
     (including small-scale renewable energy).
       (b) Report to Congress.--No later than 18 months after the 
     date of enactment of this section, each agency shall provide 
     a report to Congress and the President detailing all 
     regulatory barriers to emerging energy-efficient 
     technologies, along with actions the agency intends to take, 
     or has taken, to remove such barriers.
       (c) Periodic Review.--Each agency shall subsequently review 
     its regulations and standards in the manner specified in this 
     section no less frequently than every 5 years, and report 
     their findings to Congress and the President. Such reviews 
     shall include a detailed analysis of all agency actions taken 
     to remove existing barriers to emerging energy technologies.

     SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.

       (a) Definitions.--
       (1) Advanced idle elimination system.--The term ``advanced 
     idle elimination system'' means a device or system of devices 
     that is installed at a truck stop or other location (for 
     example, a loading, unloading, or transfer facility) where 
     vehicles (such as trucks, trains, buses, boats, automobiles, 
     and recreational vehicles) are parked and that is designed to 
     provide to the vehicle the services (such as heat, air 
     conditioning, and electricity) that would otherwise require 
     the operation of the auxiliary or drive train engine or both 
     while the vehicle is stationary and parked.
       (2) Extended idling.--The term ``extended idling'' means 
     the idling of a motor vehicle for a period greater than 60 
     minutes.
       (b) Recognition of Benefits of Advanced Idle Elimination 
     Systems.--Within 90 days after the date of enactment of this 
     subsection, the Administrator of the Environmental Protection 
     Agency is directed to commence a review of the Agency's 
     mobile source air emissions models used under the Clean Air 
     Act to determine whether such models accurately reflect the 
     emissions resulting from extended idling of heavy-duty trucks 
     and other vehicles and engines, and shall update those models 
     as the Administrator deems appropriate. Additionally, within 
     90-days after the date of enactment of this subsection, the 
     Administrator shall commence a review as to the appropriate 
     emissions reductions credit that should be allotted under the 
     Clean Air Act for the use of advanced idle elimination 
     systems, and whether such credits should be subject to an 
     emissions trading system, and shall revise Agency regulations 
     and guidance as the Administrator deems appropriate.

     SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BYPASS 
                   FILTRATION TECHNOLOGY.

       (a) Study.--The Secretary of Energy and the Administrator 
     of the Environmental Protection Agency shall jointly conduct 
     a study of oil bypass filtration technology in motor vehicle 
     engines. The study shall analyze and quantify the potential 
     benefits of such technology in terms of reduced demand for 
     oil and the potential environmental benefits of the 
     technology in terms of reduced waste and air pollution. The 
     Secretary and the Administrator shall also examine the 
     feasibility of using such technology in the Federal motor 
     vehicle fleet.
       (b) Report.--Not later than 6 months after the enactment of 
     this Act, the Secretary of Energy and the Administrator of 
     the Environmental Protection Agency shall jointly submit a 
     report containing the results of the study conducted under 
     subsection (a) 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.

     SEC. 164. GAS FLARE STUDY.

       (a) Study.--The Secretary of Energy shall conduct a study 
     of the economic feasibility of installing small cogeneration 
     facilities utilizing excess gas flares at petrochemical 
     facilities to provide reduced electricity costs to customers 
     living within 3 miles of the petrochemical facilities. The 
     Secretary shall solicit public comment to assist in preparing 
     the report required under subsection (b).
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Secretary of Energy shall transmit 
     a report to the Congress on the results of the study 
     conducted under subsection (a).

     SEC. 165. TELECOMMUTING STUDY.

       (a) Study Required.--The Secretary, in consultation with 
     Commission, and the NTIA, shall conduct a study of the energy 
     conservation implications of the widespread adoption of 
     telecommuting in the United States.

[[Page H5058]]

       (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:
       (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 the 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.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

     SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NONPASSENGER 
                   AUTOMOBILES.

       Section 32902(a) of title 49, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``Nonpassenger 
     Automobiles.--''; and
       (2) by adding at the end the following:
       ``(2) The Secretary shall prescribe under paragraph (1) 
     average fuel economy standards for automobiles (except 
     passenger automobiles) manufactured in model years 2004 
     through 2010 that are calculated to ensure that the aggregate 
     amount of gasoline projected to be used in those model years 
     by automobiles to which the standards apply is at least 5 
     billion gallons less than the aggregate amount of gasoline 
     that would be used in those model years by such automobiles 
     if they achieved only the fuel economy required under the 
     average fuel economy standard that applies under this 
     subsection to automobiles (except passenger automobiles) 
     manufactured in model year 2002.''.

     SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT AVERAGE FUEL 
                   ECONOMY STANDARDS FOR NONPASSENGER AUTOMOBILES.

       (a) In General.--The Secretary of Transportation shall, in 
     prescribing average fuel economy standards under section 
     32902(a) of title 49, United States Code, for automobiles 
     (except passenger automobiles) manufactured in model year 
     2004, consider the potential benefits of--
       (1) establishing a weight-based system for automobiles, 
     that is based on the inertia weight, curb weight, gross 
     vehicle weight rating, or another appropriate measure of such 
     automobiles; and
       (2) prescribing different fuel economy standards for 
     automobiles that are subject to the weight-based system.
       (b) Specific Considerations.--In implementing this section 
     the Secretary--
       (1) shall consider any recommendations made in the National 
     Academy of Sciences study completed pursuant to the 
     Department of Transportation and Related Agencies 
     Appropriations Act, 2000 (Public Law 106-346; 114 Stat. 2763 
     et seq.); and
       (2) shall evaluate the merits of any weight-based system in 
     terms of motor vehicle safety, energy conservation, and 
     competitiveness of and employment in the United States 
     automotive sector, and if a weight-based system is 
     established by the Secretary a manufacturer may trade credits 
     between or among the automobiles (except passenger 
     automobiles) manufactured by the manufacturer.

     SEC. 203. DUAL FUELED AUTOMOBILES.

       (a) Purposes.--The purposes of this section are--
       (1) to extend the manufacturing incentives for dual fueled 
     automobiles, as set forth in subsections (b) and (d) of 
     section 32905 of title 49, United States Code, through the 
     2008 model year; and
       (2) to similarly extend the limitation on the maximum 
     average fuel economy increase for such automobiles, as set 
     forth in subsection (a)(1) of section 32906 of title 49, 
     United States Code.
       (b) Amendments.--
       (1) Manufacturing incentives.--Section 32905 of title 49, 
     United States Code, is amended as follows:
       (A) Subsections (b) and (d) are each amended by striking 
     ``model years 1993-2004'' and inserting ``model years 1993-
     2008''.
       (B) Subsection (f) is amended by striking ``Not later than 
     December 31, 2001, the Secretary'' and inserting ``Not later 
     than December 31, 2005, the Secretary''.
       (C) Subsection (f)(1) is amended by striking ``model year 
     2004'' and inserting ``model year 2008''.
       (D) Subsection (g) is amended by striking ``Not later than 
     September 30, 2000'' and inserting ``Not later than September 
     30, 2004''.
       (2) Maximum fuel economy increase.--Subsection (a)(1) of 
     section 32906 of title 49, United States Code, is amended as 
     follows:
       (A) Subparagraph (A) is amended by striking ``the model 
     years 1993-2004'' and inserting ``model years 1993-2008''.
       (B) Subparagraph (B) is amended by striking ``the model 
     years 2005-2008'' and inserting ``model years 2009-2012''.

     SEC. 204. FUEL ECONOMY OF THE FEDERAL FLEET OF AUTOMOBILES.

       Section 32917 of title 49, United States Code, is amended 
     to read as follows:

     ``Sec. 32917. Standards for executive agency automobiles

       ``(a) Baseline Average Fuel Economy.--The head of each 
     executive agency shall determine, for all automobiles in the 
     agency's fleet of automobiles that were leased or bought as a 
     new vehicle in fiscal year 1999, the average fuel economy for 
     such automobiles. For the purposes of this section, the 
     average fuel economy so determined shall be the baseline 
     average fuel economy for the agency's fleet of automobiles.
       ``(b) Increase of Average Fuel Economy.--The head of an 
     executive agency shall manage the procurement of automobiles 
     for that agency in such a manner that--
       ``(1) not later than September 30, 2003, the average fuel 
     economy of the new automobiles in the agency's fleet of 
     automobiles is not less than 1 mile per gallon higher than 
     the baseline average fuel economy determined under subsection 
     (a) for that fleet; and
       ``(2) not later than September 30, 2005, the average fuel 
     economy of the new automobiles in the agency's fleet of 
     automobiles is not less than 3 miles per gallon higher than 
     the baseline average fuel economy determined under subsection 
     (a) for that fleet.
       ``(c) Calculation of Average Fuel Economy.--Average fuel 
     economy shall be calculated for the purposes of this section 
     in accordance with guidance which the Secretary of 
     Transportation shall prescribe for the implementation of this 
     section.
       ``(d) Definitions.--In this section:
       ``(1) The term `automobile' does not include any vehicle 
     designed for combat-related missions, law enforcement work, 
     or emergency rescue work.
       ``(2) The term `executive agency' has the meaning given 
     that term in section 105 of title 5.
       ``(3) The term `new automobile', with respect to the fleet 
     of automobiles of an executive agency, means an automobile 
     that is leased for at least 60 consecutive days or bought, by 
     or for the agency, after September 30, 1999.''.

     SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.

       (a) In General.--Section 303(b)(1) of the Energy Policy Act 
     of 1992 is amended by adding the following at the end: ``Of 
     the total number of vehicles acquired by a Federal fleet in 
     fiscal years 2004 and 2005, at least 5 percent of the 
     vehicles in addition to those covered by the preceding 
     sentence shall be alternative fueled vehicles or hybrid 
     vehicles and in fiscal year 2006 and thereafter at least 10 
     percent of the vehicles in addition to those covered by the 
     preceding sentence shall be alternative fueled vehicles or 
     hybrid vehicles.''.
       (b) Definition.--Section 301 of such Act is amended by 
     striking ``and'' at the end of paragraph (13), by striking 
     the period at the end of paragraph (14) and inserting ``; 
     and'' and by adding at the end the following:
       ``(15) The term `hybrid vehicle' means a motor vehicle 
     which draws propulsion energy from onboard sources of stored 
     energy which are both--
       ``(A) an internal combustion or heat engine using 
     combustible fuel; and
       ``(B) a rechargeable energy storage system.''.

     SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTERNATIVE FUELS.

       (a) In General.--Title III of the Energy Policy Act of 1992 
     (42 U.S.C. 13212 et seq.) is amended as follows:
       (1) By adding at the end thereof the following:

     ``SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE 
                   FEDERAL GOVERNMENT FOR LIGHT-DUTY MOTOR 
                   VEHICLES.

       ``(a) Purposes.--The purposes of this section are to 
     complement and supplement the requirements of section 303 of 
     this Act that Federal fleets, as that term is defined in 
     section 303(b)(3), acquire in the aggregate a minimum 
     percentage of alternative fuel vehicles, to encourage the 
     manufacture and sale or lease of such vehicles nationwide, 
     and to achieve, in the aggregate, a reduction in the amount 
     of the petroleum-based fuels (other than the alternative 
     fuels defined in this title) used by new light-duty motor 
     vehicles acquired by the Federal Government in model years 
     2004 through 2010 and thereafter.
       ``(b) Implementation.--In furtherance of such purposes, 
     such Federal fleets in the aggregate shall reduce the 
     purchase of petroleum-based nonalternative fuels for such 
     fleets beginning October 1, 2003, through September 30, 2009, 
     from the amount purchased for such fleets over a comparable 
     period since enactment of this Act, as determined by the 
     Secretary, through the annual purchase, in accordance with 
     section 304, and the use of alternative fuels for the light-
     duty motor vehicles of such Federal fleets, so as to achieve 
     levels which reflect total reliance

[[Page H5059]]

     by such fleets on the consumptive use of alternative fuels 
     consistent with the provisions of section 303(b) of this Act. 
     The Secretary shall, within 120 days after the enactment of 
     this section, promulgate, in consultation with the 
     Administrator of the General Services Administration and the 
     Director of the Office of Management and Budget and such 
     other heads of entities referenced in section 303 within the 
     executive branch as such Director may designate, standards 
     for the full and prompt implementation of this section by 
     such entities. The Secretary shall monitor compliance with 
     this section and such standards by all such fleets and shall 
     report annually to the Congress, based on reports by the 
     heads of such fleets, on the extent to which the requirements 
     of this section and such standards are being achieved. The 
     report shall include information on annual reductions 
     achieved of petroleum-based fuels and the problems, if any, 
     encountered in acquiring alternative fuels and in requiring 
     their use.''.
       (2) By amending section 304(b) of such Act to read as 
     follows:
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary or, as 
     appropriate, the head of each Federal fleet subject to the 
     provisions of this section and section 313 of this Act, such 
     sums as may be necessary to achieve the purposes of section 
     313(a) and the provisions of this section. Such sums shall 
     remain available until expended.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by adding at the end of the items 
     relating to title III the following:

``Sec. 313. Conservation of petroleum-based fuels by the Federal 
              Government for light-duty motor vehicles.''.

     SEC. 207. 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 Secretary of Transportation 
     shall enter into an arrangement with the National Academy of 
     Sciences under which the Academy shall study the feasibility 
     and effects of reducing by model year 2010, by a significant 
     percentage, the use of fuel for 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 Secretary shall require the National 
     Academy of Sciences to submit to the Secretary and the 
     Congress a report on the findings, conclusion, and 
     recommendations of the study under this section by not later 
     than 1 year after the date of the enactment of this Act.

                       TITLE III--NUCLEAR ENERGY

     SEC. 301. LICENSE PERIOD.

       Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2133(c)) is amended--
       (1) by striking ``c. Each such'' and inserting the 
     following:
       ``c. License Period.--
       ``(1) In general.--Each such''; and
       (2) by adding at the end the following:
       ``(2) Combined licenses.--In the case of a combined 
     construction and operating license issued under section 185 
     b., the initial duration of the license may not exceed 40 
     years from the date on which the Commission finds, before 
     operation of the facility, that the acceptance criteria 
     required by section 185 b. are met.''.

     SEC. 302. 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. 303. DEPLETED URANIUM HEXAFLUORIDE.

       Section 1(b) of Public Law 105-204 is amended by striking 
     ``fiscal year 2002'' and inserting ``fiscal year 2005''.

     SEC. 304. 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. 305. 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 $10,000,000 for each of 
     fiscal years 2002, 2003, and 2004 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.

     SEC. 306. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION 
                   INDUSTRY.

       There are authorized to be appropriated to the Secretary 
     $800,000 for contracting with the Nation's sole remaining 
     uranium converter for the purpose of performing research and 
     development to improve the environmental and economic 
     performance of United States uranium conversion operations.

     SEC. 307. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.

       The Secretary of Energy shall prepare and submit a plan to 
     Congress within 180 days after the date of the enactment of 
     this Act that establishes scope, cost, schedule, sequence of 
     activities, and contracting strategy for--
       (1) the decontamination and decommissioning of the 
     Department of Energy's surplus buildings and facilities at 
     the Paducah Gaseous Diffusion Plant that have no future 
     anticipated reuse; and
       (2) the remediation of Department of Energy Material 
     Storage Areas at the Paducah Gaseous Diffusion Plant.

     Such plan shall inventory all surplus facilities and 
     buildings, and identify and rank health and safety risks 
     associated with such facilities and buildings. Such plan 
     shall inventory all Department of Energy Material Storage 
     Areas, and identify and rank health and safety risks 
     associated with such Department of Energy Material Storage 
     Areas. The Department of Energy shall incorporate these risk 
     factors in designing the sequence and schedule for the plan. 
     Such plan shall identify funding requirements that are in 
     addition to the expected outlays included in the Department 
     of Energy's Environmental Management Plan for the Paducah 
     Gaseous Diffusion Plan.

                     TITLE IV--HYDROELECTRIC ENERGY

     SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.

       (a) Alternative Mandatory Conditions.--Section 4 of the 
     Federal Power Act (16 U.S.C. 797) is amended by adding at the 
     end the following:
       ``(h)(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 deems a condition to such license to 
     be necessary under the first proviso of subsection (e), the 
     license applicant or any other party to the licensing 
     proceeding may propose an alternative condition.
       ``(2) Notwithstanding the first proviso of subsection (e), 
     the Secretary of the department under whose supervision the 
     reservation falls 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 of the appropriate department determines, based 
     on substantial evidence provided by the party proposing such 
     alternative condition, that the alternative condition--
       ``(A) provides no less protection for the reservation than 
     provided by the condition deemed necessary 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 condition deemed necessary by the 
     Secretary.
       ``(3) Within one year after the enactment of this 
     subsection, each Secretary concerned shall, by rule, 
     establish a process to expeditiously resolve conflicts 
     arising under this subsection.''.
       (b) Alternative Fishways.--Section 18 of the Federal Power 
     Act (16 U.S.C. 811) is amended by--
       (1) inserting ``(a)'' before the first sentence; and
       (2) adding at the end the following:
       ``(b)(1) Whenever the Commission shall require a licensee 
     to construct, maintain, or operate a fishway prescribed by 
     the Secretary of the Interior or the Secretary of

[[Page H5060]]

     Commerce under this section, the licensee or any other party 
     to the proceeding may propose an alternative to such 
     prescription to construct, maintain, or operate a fishway.
       ``(2) Notwithstanding subsection (a), 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 party proposing such 
     alternative, that the alternative--
       ``(A) will be no less effective 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 prescribed by the 
     Secretary.
       ``(3) Within one year after the enactment of this 
     subsection, the Secretary of the Interior and the Secretary 
     of Commerce shall each, by rule, establish a process to 
     expeditiously resolve conflicts arising under this 
     subsection.''

     SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.

       (a) Data Collection Procedures.--The Federal Energy 
     Regulatory Commission shall revise its procedures regarding 
     the collection of data in connection with the Commission's 
     consideration of hydroelectric licenses under the Federal 
     Power Act. Such revised data collection procedures shall be 
     designed to provide the Commission with complete and accurate 
     information concerning the time and costs to parties involved 
     in the licensing process. Such data shall be available for 
     each significant stage in the licensing process and shall be 
     designed to identify projects with similar characteristics so 
     that analyses can be made of the time and costs involved in 
     licensing proceedings based upon the different 
     characteristics of those proceedings.
       (b) Reports.--Within 6 months after the date of enactment 
     of this Act, the Commission shall notify the Committee on 
     Energy and Commerce of the United States House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the United States Senate of the progress made by 
     the Commission under subsection (a), and within one year 
     after such date of enactment, the Commission shall submit a 
     report to such Committees specifying the measures taken by 
     the Commission pursuant to subsection (a).

                             TITLE V--FUELS

     SEC. 601. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.

       Not later than 60 days after the enactment of the Act, the 
     Administrator of the Environmental Protection Agency shall 
     commence a rulemaking to determine whether modifications to 
     the regulations set forth in 40 C.F.R. Section 80.78 and any 
     associated regulations regarding the transition to high ozone 
     season reformulated gasoline are necessary to ensure that the 
     transition to high ozone season reformulated gasoline is 
     conducted in a manner that minimizes disruptions to the 
     general availability and affordability of gasoline, and 
     maximizes flexibility with regard to the draining and 
     inventory management of gasoline storage tanks located at 
     refineries, terminals, wholesale and retail outlets, 
     consistent with the goals of the Clean Air Act. The 
     Administrator shall propose and take final action in such 
     rulemaking to ensure that any modifications are effective and 
     implemented at least 60 days prior to the beginning of the 
     high ozone season for the year 2002.

     SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.

       Not later than 60 days after the enactment of this Act, the 
     Administrator of the Environmental Protection Agency shall 
     commence a rulemaking to determine whether modifications to 
     product transfer documentation, accounting, compliance 
     calculation, and other requirements contained in the 
     regulations of the Administrator set forth in section 80.102 
     of title 40 of the Code of Federal Regulations relating to 
     gasoline blendstocks are necessary to facilitate the movement 
     of gasoline and gasoline feedstocks among different regions 
     throughout the country and to improve the ability of 
     petroleum refiners and importers to respond to regional 
     gasoline shortages and prevent unreasonable short-term price 
     increases. The Administrator shall take into consideration 
     the extent to which such requirements have been, or will be, 
     rendered unnecessary or inefficient by reason of subsequent 
     environmental safeguards that were not in effect at the time 
     the regulations in section 80.102 of title 40 of the Code of 
     Federal Regulations were promulgated. The Administrator shall 
     propose and take final action in such rulemaking to ensure 
     that any modifications are effective and implemented at least 
     60 days prior to the beginning of the high ozone season for 
     the year 2002.

     SEC. 603. BOUTIQUE FUELS.

       (a) Joint Study.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Energy shall jointly 
     conduct a study of all Federal, State, and local requirements 
     regarding motor vehicle fuels, including requirements 
     relating to reformulated gasoline, volatility (Reid Vapor 
     Pressure), oxygenated fuel, diesel fuel and other 
     requirements that vary from State to State, region to region, 
     or locality to locality. The study shall analyze--
       (1) the effect of the variety of such requirements on the 
     price of motor vehicle fuels to the consumer;
       (2) the availability and affordability of motor vehicle 
     fuels in different States and localities;
       (3) the effect of Federal, State, and local regulations, 
     including multiple fuel requirements, on domestic refineries 
     and the fuel distribution system;
       (4) the effect of such requirements on local, regional, and 
     national air quality requirements and goals;
       (5) the effect of such requirements on vehicle emissions;
       (6) the feasibility of developing national or regional fuel 
     specifications for the contiguous United States that would--
       (A) enhance flexibility in the fuel distribution 
     infrastructure and improve fuel fungibility;
       (B) reduce price volatility and costs to consumers and 
     producers;
       (C) meet local, regional, and national air quality 
     requirements and goals; and
       (D) provide increased gasoline market liquidity; and
       (7) the extent to which the Environmental Protection 
     Agency's Tier II requirements for conventional gasoline may 
     achieve in future years the same or similar air quality 
     results as State reformulated gasoline programs and State 
     programs regarding gasoline volatility (RVP).
       (b) Report.--By December 31, 2001, the Administrator of the 
     Environmental Protection Agency and the Secretary of Energy 
     shall submit a report to the Congress containing the results 
     of the study conducted under subsection (a). Such report 
     shall contain recommendations for legislative and 
     administrative actions that may be taken to simplify the 
     national distribution system for motor vehicle fuel, make 
     such system more cost-effective, and reduce the costs and 
     increase the availability of motor vehicle fuel to the end 
     user while meeting the requirements of the Clean Air Act. 
     Such recommendations shall take into account the need to 
     provide lead time for refinery and fuel distribution system 
     modifications necessary to assure adequate fuel supply for 
     all States.

     SEC. 604. FUNDING FOR MTBE CONTAMINATION.

       Notwithstanding any other provision of law, there is 
     authorized to be appropriated to the Administrator of the 
     Environmental Protection Agency from the Leaking Underground 
     Storage Trust Fund not more than $200,000,000 to be used for 
     taking such action, limited to assessment, corrective action, 
     inspection of underground storage tank systems, and 
     groundwater monitoring in connection with MTBE contamination, 
     as the Administrator deems necessary to protect human health 
     and the environment from releases of methyl tertiary butyl 
     ether (MTBE) from underground storage tanks.

                       TITLE VI--RENEWABLE ENERGY

     SEC. 701. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

       (a) Resource Assessment.--Not later than one year after the 
     date of enactment of this Act, and each year thereafter, the 
     Secretary of Energy shall publish an assessment by the 
     National Laboratories of all renewable energy resources 
     available within the United States.
       (b) Contents of Report.--The report published under 
     subsection (a) shall contain each of the following:
       (1) A detailed inventory describing the available amount 
     and characteristics of solar, wind, biomass, geothermal, 
     hydroelectric and other renewable energy sources.
       (2) Such other information as the Secretary of Energy 
     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.

     SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.

       Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 
     13317) is amended as follows:
       (1) In subsection (a) by striking ``and which satisfies'' 
     and all that follows through ``Secretary shall establish.'' 
     and inserting ``. The Secretary shall establish other 
     procedures necessary for efficient administration of the 
     program. The Secretary shall not establish any criteria or 
     procedures that have the effect of assigning to proposals a 
     higher or lower priority for eligibility or allocation of 
     appropriated funds on the basis of the energy source 
     proposed.''.
       (2) In subsection (b)--
       (A) by striking ``a State or any political'' and all that 
     follows through ``nonprofit electrical cooperative'' and 
     inserting ``an electricity-generating cooperative exempt from 
     taxation under section 501(c)(12) or section 1381(a)(2)(C) of 
     the Internal Revenue Code of 1986, a public utility described 
     in section 115 of such Code, 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
       (B) By inserting ``landfill gas,'' after ``wind, 
     biomass,''.
       (3) In subsection (c) by striking ``during the 10-fiscal 
     year period beginning with the first full fiscal year 
     occurring after the enactment of this section'' and inserting 
     ``before October 1, 2013''.
       (4) In subsection (d) by inserting ``or in which the 
     Secretary finds that all necessary Federal and State 
     authorizations have been

[[Page H5061]]

     obtained to begin construction of the facility'' after 
     ``eligible for such payments''.
       (5) In subsection (e)(1) by inserting ``landfill gas,'' 
     after ``wind, biomass,''.
       (6) In subsection (f) by striking ``the expiration of'' and 
     all that follows through ``of this section'' and inserting 
     ``September 30, 2023''.
       (7) In subsection (g)--
       (A) by striking ``1993, 1994, and 1995'' and inserting 
     ``2003 through 2023''; and
       (B) by inserting ``Funds may be appropriated pursuant to 
     this subsection to remain available until expended.'' after 
     ``purposes of this section.''.

                          TITLE VII--PIPELINES

     SEC. 801. PROHIBITION ON CERTAIN PIPELINE ROUTE.

       No license, permit, lease, right-of-way, authorization or 
     other approval required under Federal law for the 
     construction of any pipeline to transport natural gas from 
     lands within the Prudhoe Bay oil and gas lease area may be 
     granted for any pipeline that follows a route that 
     traverses--
       (1) the submerged lands (as defined by the Submerged Lands 
     Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
     and
       (2) enters Canada at any point north of 68 degrees North 
     latitude.

     SEC. 802. HISTORIC PIPELINES.

       Section 7 of the Natural Gas Act (15 U.S.C. 717f) is 
     amended by adding at the end the following new subsection:
       ``(i) Notwithstanding the National Historic Preservation 
     Act, a transportation facility shall not be eligible for 
     inclusion on the National Register of Historic Places until 
     the Commission has permitted the abandonment of the 
     transportation facility pursuant to subsection (b) of this 
     section.''.

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.

       (a) Grant Authority.--The Secretary of Energy is authorized 
     to make a single grant to a qualified institution to examine 
     and develop the feasibility of burning post-consumer carpet 
     in cement kilns as an alternative energy source. The purposes 
     of the grant shall include determining--
       (1) how post-consumer carpet can be burned without 
     disrupting kiln operations;
       (2) the extent to which overall kiln emissions may be 
     reduced; and
       (3) how this process provides benefits to both cement kiln 
     operations and carpet suppliers.
       (b) Qualified Institution.--For the purposes of subsection 
     (a), a qualified institution is a research-intensive 
     institution of higher learning with demonstrated expertise in 
     the fields of fiber recycling and logistical modeling of 
     carpet waste collection and preparation.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy for carrying 
     out this section $275,000 for fiscal year 2002, to remain 
     available until expended.

     SEC. 902. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.

       (a) Report.--The Secretary of Energy, in consultation with 
     the heads of other relevant Federal agencies, shall include 
     in each report under section 801(c) of the Department of 
     Energy Organization Act a section which evaluates the 
     progress the United States has made toward obtaining the goal 
     of not more than 50 percent dependence on foreign oil sources 
     by 2010.
       (b) Alternatives.--The information required under this 
     section to be included in the reports under section 801(c) of 
     the Department of Energy Organization Act shall include a 
     specification of what legislative or administrative actions 
     must be implemented to meet this goal and set forth a range 
     of options and alternatives with a cost/benefit analysis for 
     each option or alternative together with an estimate of the 
     contribution each option or alternative could make to reduce 
     foreign oil imports. The Secretary shall solicit information 
     from the public and request information from the Energy 
     Information Agency and other agencies to develop the 
     information required under this section. The information 
     shall indicate, in detail, options and alternatives to--
       (1) increase the use of renewable domestic energy sources, 
     including conventional and nonconventional sources;
       (2) conserve energy resources, including improving 
     efficiencies and decreasing consumption; and
       (3) increase domestic production and use of oil, natural 
     gas, nuclear, and coal, including any actions necessary to 
     provide access to, and transportation of, these energy 
     resources.

     SEC. 903. STUDY OF AIRCRAFT EMISSIONS.

       The Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency shall jointly commence a 
     study within 60 days after the enactment of this Act to 
     investigate the impact of aircraft emissions on air quality 
     in areas that are considered to be in nonattainment for the 
     national ambient air quality standard for ozone. As part of 
     this study, the Secretary and the Administrator shall focus 
     on the impact of emissions by aircraft idling at airports and 
     on the contribution of such emissions as a percentage of 
     total emissions in the nonattainment area. Within 180 days of 
     the commencement of the study, the Secretary and the 
     Administrator shall submit a report to the Committees on 
     Energy and Commerce and Transportation and Infrastructure of 
     the United States House of Representatives and to the 
     Committees on Environment and Public Works and Commerce, 
     Science, and Transportation of the United States Senate 
     containing the results of the study and recommendations with 
     respect to a plan to maintain comprehensive data on aircraft 
     emissions and methods by which such emissions may be reduced, 
     without increasing individual aircraft noise, in order to 
     assist in the attainment of the national ambient air quality 
     standards.

                               DIVISION B

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Comprehensive Energy 
     Research and Technology Act of 2001''.

     SEC. 2002. FINDINGS.

       The Congress finds that--
       (1) the Nation's prosperity and way of life are sustained 
     by energy use;
       (2) the growing imbalance between domestic energy 
     production and consumption means that the Nation is becoming 
     increasingly reliant on imported energy, which has the 
     potential to undermine the Nation's economy, standard of 
     living, and national security;
       (3) energy conservation and energy efficiency help maximize 
     the use of available energy resources, reduce energy 
     shortages, lower the Nation's reliance on energy imports, 
     mitigate the impacts of high energy prices, and help protect 
     the environment and public health;
       (4) development of a balanced portfolio of domestic energy 
     supplies will ensure that future generations of Americans 
     will have access to the energy they need;
       (5) energy efficiency technologies, renewable and 
     alternative energy technologies, and advanced energy systems 
     technologies will help diversify the Nation's energy 
     portfolio with few adverse environmental impacts and are 
     vital to delivering clean energy to fuel the Nation's 
     economic growth;
       (6) development of reliable, affordable, and 
     environmentally sound energy efficiency technologies, 
     renewable and alternative energy technologies, and advanced 
     energy systems technologies will require maintenance of a 
     vibrant fundamental scientific knowledge base and continued 
     scientific and technological innovations that can be 
     accelerated by Federal funding, whereas commercial deployment 
     of such systems and technologies are the responsibility of 
     the private sector;
       (7) Federal funding should focus on those programs, 
     projects, and activities that are long-term, high-risk, 
     noncommercial, and well-managed, and that provide the 
     potential for scientific and technological advances; and
       (8) public-private partnerships should be encouraged to 
     leverage scarce taxpayer dollars.

     SEC. 2003. PURPOSES.

       The purposes of this division are to--
       (1) protect and strengthen the Nation's economy, standard 
     of living, and national security by reducing dependence on 
     imported energy;
       (2) meet future needs for energy services at the lowest 
     total cost to the Nation, including environmental costs, 
     giving balanced and comprehensive consideration to 
     technologies that improve the efficiency of energy end uses 
     and that enhance energy supply;
       (3) reduce the air, water, and other environmental impacts 
     (including emissions of greenhouse gases) of energy 
     production, distribution, transportation, and use through the 
     development of environmentally sustainable energy systems;
       (4) consider the comparative environmental impacts of the 
     energy saved or produced by specific programs, projects, or 
     activities;
       (5) maintain the technological competitiveness of the 
     United States and stimulate economic growth through the 
     development of advanced energy systems and technologies;
       (6) foster international cooperation by developing 
     international markets for domestically produced sustainable 
     energy technologies, and by transferring environmentally 
     sound, advanced energy systems and technologies to developing 
     countries to promote sustainable development;
       (7) provide sufficient funding of programs, projects, and 
     activities that are performance-based and modeled as public-
     private partnerships, as appropriate; and
       (8) enhance the contribution of a given program, project, 
     or activity to fundamental scientific knowledge.

     SEC. 2004. GOALS.

       (a) In General.--Subject to subsection (b), in order to 
     achieve the purposes of this division under section 2003, the 
     Secretary should conduct a balanced energy research, 
     development, demonstration, and commercial application 
     portfolio of programs guided by the following goals to meet 
     the purposes of this division under section 2003.
       (1) Energy conservation and energy efficiency.--
       (A) For the Building Technology, State and Community 
     Sector, the program should develop technologies, housing 
     components, designs, and production methods that will, by 
     2010--
       (i) reduce the monthly energy cost of new housing by 20 
     percent, compared to the cost as of the date of the enactment 
     of this Act;
       (ii) cut the environmental impact and energy use of new 
     housing by 50 percent, compared to the impact and use as of 
     the date of the enactment of this Act; and

[[Page H5062]]

       (iii) improve durability and reduce maintenance costs by 50 
     percent compared to the durability and costs as of the date 
     of the enactment of this Act.
       (B) For the Industry Sector, the program should, in 
     cooperation with the affected industries, improve the energy 
     intensity of the major energy-consuming industries by at 
     least 25 percent by 2010, compared to the energy intensity as 
     of the date of the enactment of this Act.
       (C) For Power Technologies, the program should, in 
     cooperation with the affected industries--
       (i) develop a microturbine (40 to 300 kilowatt) that is 
     more than 40 percent more efficient by 2006, and more than 50 
     percent more efficient by 2010, compared to the efficiency as 
     of the date of the enactment of this Act; and
       (ii) develop advanced materials for combustion systems that 
     reduce emissions of nitrogen oxides by 30 to 50 percent while 
     increasing efficiency 5 to 10 percent by 2007, compared to 
     such emissions as of the date of the enactment of this Act.
       (D) For the Transportation Sector, the program should, in 
     cooperation with affected industries--
       (i) develop a production prototype passenger automobile 
     that has fuel economy equivalent to 80 miles per gallon of 
     gasoline by 2004;
       (ii) develop class 7 and 8 heavy duty trucks and buses with 
     ultra low emissions and the ability to use an alternative 
     fuel that has an average fuel economy equivalent to--

       (I) 10 miles per gallon of gasoline by 2007; and
       (II) 13 miles per gallon of gasoline by 2010;

       (iii) develop a production prototype of a passenger 
     automobile with zero equivalent emissions that has an average 
     fuel economy of 100 miles per gallon of gasoline by 2010; and
       (iv) improve, by 2010, the average fuel economy of trucks--

       (I) in classes 1 and 2 by 300 percent; and
       (II) in classes 3 through 6 by 200 percent,

     compared to the fuel economy as of the date of the enactment 
     of this Act.
       (2) Renewable energy.--
       (A) For Hydrogen Research, to carry out the Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990, as amended by subtitle A of title II of this 
     division.
       (B) For bioenergy:
       (i) The program should reduce the cost of bioenergy 
     relative to other energy sources to enable the United States 
     to triple bioenergy use by 2010.
       (ii) For biopower systems, the program should reduce the 
     cost of such systems to enable commercialization of 
     integrated power-generating technologies that employ gas 
     turbines and fuel cells integrated with bioenergy gasifiers 
     within five years after the date of the enactment of this 
     Act.
       (iii) For biofuels, the program should accelerate research, 
     development, and demonstration on advanced enzymatic 
     hydrolysis technology for making ethanol from cellulosic 
     feedstock, with the goal that between 2010 and 2015 ethanol 
     produced from energy crops would be fully competitive in 
     terms of price with gasoline as a neat fuel, in either 
     internal combustion engines or fuel cell vehicles.
       (C) For Geothermal Technology Development, the program 
     should focus on advanced concepts for the long term. The 
     first priority should be high-grade enhanced geothermal 
     systems; the second priority should be lower grade, hot dry 
     rock, and geopressured systems; and the third priority should 
     be support of field demonstrations of enhanced geothermal 
     systems technology, including sites in lower grade areas to 
     demonstrate the benefits of reservoir concepts to different 
     conditions.
       (D) For Hydropower, the program should provide a new 
     generation of turbine technologies that will increase 
     generating capacity and will be less damaging to fish and 
     aquatic ecosystems.
       (E) For Concentrating Solar Power, the program should 
     strengthen ongoing research, development, and demonstration 
     combining high-efficiency and high-temperature receivers with 
     advanced thermal storage and power cycles, with the goal of 
     making solar-only power (including baseload solar power) 
     widely competitive with fossil fuel power by 2015. The 
     program should limit or halt its research and development on 
     power-tower and power-trough technologies because further 
     refinements to these concepts will not further their 
     deployment, and should assess the market prospects for solar 
     dish/engine technologies to determine whether continued 
     research and development is warranted.
       (F) For Photovoltaic Energy Systems, the program should 
     pursue research, development, and demonstration that will, by 
     2005, increase the efficiency of thin film modules from the 
     current 7 percent to 11 percent in multi-million watt 
     production; reduce the direct manufacturing cost of 
     photovoltaic modules by 30 percent from the current $2.50 per 
     watt to $1.75 per watt by 2005; and establish greater than a 
     20-year lifetime of photovoltaic systems by improving the 
     reliability and lifetime of balance-of-system components and 
     reducing recurring cost by 40 percent. The program's top 
     priority should be the development of sound manufacturing 
     technologies for thin-film modules, and the program should 
     make a concerted effort to integrate fundamental research and 
     basic engineering research.
       (G) For Solar Building Technology Research, the program 
     should complete research and development on new polymers and 
     manufacturing processes to reduce the cost of solar water 
     heating by 50 percent by 2004, compared to the cost as of the 
     date of enactment of this Act.
       (H) For Wind Energy Systems, the program should reduce the 
     cost of wind energy to three cents per kilowatt-hour at Class 
     6 (15 miles-per-hour annual average) wind sites by 2004, and 
     4 cents per kilowatt-hour in Class 4 (13 miles-per-hour 
     annual average) wind sites by 2015, and further if required 
     so that wind power can be widely competitive with fossil-
     fuel-based electricity in a restructured electric industry. 
     Program research on advanced wind turbine technology should 
     focus on turbulent flow studies, durable materials to extend 
     turbine life, blade efficiency, and higher efficiency 
     operation in low quality wind regimes.
       (I) For Electric Energy Systems and Storage, including High 
     Temperature Superconducting Research and Development, Energy 
     Storage Systems, and Transmission Reliability, the program 
     should develop high capacity superconducting transmission 
     lines and generators, highly reliable energy storage systems, 
     and distributed generating systems to accommodate multiple 
     types of energy sources under common interconnect standards.
       (J) For the International Renewable Energy and Renewable 
     Energy Production Incentive programs, and Renewable Program 
     Support, the program should encourage the commercial 
     application of renewable energy technologies by developed and 
     developing countries, State and local governmental entities 
     and nonprofit electric cooperatives, and by the competitive 
     domestic market.
       (3) Nuclear energy.--
       (A) For university nuclear science and engineering, the 
     program should carry out the provisions of subtitle A of 
     title III of this division.
       (B) For fuel cycle research, development, and 
     demonstration, the program should carry out the provisions of 
     subtitle B of title III of this division.
       (C) For the Nuclear Energy Research Initiative, the program 
     should accomplish the objectives of section 2341(b) of this 
     Act.
       (D) For the Nuclear Energy Plant Optimization Program, the 
     program should accomplish the objectives of section 2342(b) 
     of this Act.
       (E) For Nuclear Energy Technologies, the program should 
     carry out the provisions of section 2343 of this Act.
       (F) For Advanced Radioisotope Power Systems, the program 
     should ensure that the United States has adequate capability 
     to power future satellite and space missions.
       (4) Fossil energy.--
       (A) For core fossil energy research and development, the 
     program should achieve the goals outlined by the Department's 
     Vision 21 Program. This research should address fuel-flexible 
     gasification and turbines, fuel cells, advanced-combustion 
     systems, advanced fuels and chemicals, advanced modeling and 
     systems analysis, materials and heat exchangers, 
     environmental control technologies, gas-stream purification, 
     gas-separation technology, and sequestration research and 
     development focused on cost-effective novel concepts for 
     capturing, reusing or storing, or otherwise mitigating carbon 
     and other greenhouse gas emissions.
       (B) For offshore oil and natural gas resources, the program 
     should investigate and develop technologies to--
       (i) extract methane hydrates in coastal waters of the 
     United States, in accordance with the provisions of the 
     Methane Hydrate Research and Development Act of 2000; and
       (ii) develop natural gas and oil reserves in the ultra-
     deepwater of the Central and Western Gulf of Mexico. Research 
     and development on ultra-deepwater resource recovery shall 
     focus on improving the safety and efficiency of such recovery 
     and of sub-sea production technology used for such recovery, 
     while lowering costs.
       (C) For transportation fuels, the program should support a 
     comprehensive transportation fuels strategy to increase the 
     price elasticity of oil supply and demand by focusing 
     research on reducing the cost of producing transportation 
     fuels from natural gas and indirect liquefaction of coal.
       (5) Science.--The Secretary, through the Office of Science, 
     should--
       (A) develop and maintain a robust portfolio of fundamental 
     scientific and energy research, including High Energy and 
     Nuclear Physics, Biological and Environmental Research, Basic 
     Energy Sciences (including Materials Sciences, Chemical 
     Sciences, Engineering and Geosciences, and Energy 
     Biosciences), Advanced Scientific Computing, Energy Research 
     and Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Fusion Energy Sciences, and Facilities and 
     Infrastructure;
       (B) maintain, upgrade, and expand, as appropriate, and in 
     accordance with the provisions of this division, the 
     scientific user facilities maintained by the Office of 
     Science, and ensure that they are an integral part of the 
     Department's mission for exploring the frontiers of 
     fundamental energy sciences; and
       (C) ensure that its fundamental energy sciences programs, 
     where appropriate, help inform the applied research and 
     development programs of the Department.
       (b) Review and Assessment.--The Secretary shall perform an 
     assessment that establishes measurable cost and performance-
     based goals, or that modifies the goals under

[[Page H5063]]

     subsection (a), as appropriate, for 2005, 2010, 2015, and 
     2020 for each of the programs authorized by this division 
     that would enable each such program to meet the purposes of 
     this division under section 2003. Such assessment shall be 
     based on the latest scientific and technical knowledge, and 
     shall also take into consideration, as appropriate, the 
     comparative environmental impacts (including emissions of 
     greenhouse gases) of the energy saved or produced by specific 
     programs.
       (c) Consultation.--In establishing the measurable cost and 
     performance-based goals under subsection (b), the Secretary 
     shall consult with the private sector, institutions of higher 
     learning, national laboratories, environmental organizations, 
     professional and technical societies, and any other persons 
     as the Secretary considers appropriate.
       (d) Schedule.--The Secretary shall--
       (1) issue and publish in the Federal Register a set of 
     draft measurable cost and performance-based goals for the 
     programs authorized by this division for public comment--
       (A) in the case of a program established before the date of 
     the enactment of this Act, not later than 120 days after the 
     date of the enactment of this Act; and
       (B) in the case of a program not established before the 
     date of the enactment of this Act, not later than 120 days 
     after the date of establishment of the program;
       (2) not later than 60 days after the date of publication 
     under paragraph (1), after taking into consideration any 
     public comments received, transmit to the Congress and 
     publish in the Federal Register the final measurable cost and 
     performance-based goals; and
       (3) update all such cost and performance-based goals on a 
     biennial basis.

     SEC. 2005. DEFINITIONS.

       For purposes of this division, except as otherwise 
     provided--
       (1) the term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency;
       (2) the term ``appropriate congressional committees'' 
     means--
       (A) the Committee on Science and the Committee on 
     Appropriations of the House of Representatives; and
       (B) the Committee on Energy and Natural Resources and the 
     Committee on Appropriations of the Senate;
       (3) the term ``Department'' means the Department of Energy; 
     and
       (4) the term ``Secretary'' means the Secretary of Energy.

     SEC. 2006. AUTHORIZATIONS.

       Authorizations of appropriations under this division are 
     for environmental research and development, scientific and 
     energy research, development, and demonstration, and 
     commercial application of energy technology programs, 
     projects, and activities.

     SEC. 2007. BALANCE OF FUNDING PRIORITIES.

       (a) Sense of Congress.--It is the sense of the Congress 
     that the funding of the various programs authorized by titles 
     I through IV of this division should remain in the same 
     proportion to each other as provided in this division, 
     regardless of the total amount of funding made available for 
     those programs.
       (b) Report to Congress.--If for fiscal year 2002, 2003, or 
     2004 the amounts appropriated in general appropriations Acts 
     for the programs authorized in titles I through IV of this 
     division are not in the same proportion to one another as are 
     the authorizations for such programs in this division, the 
     Secretary and the Administrator shall, within 60 days after 
     the date of the enactment of the last general appropriations 
     Act appropriating amounts for such programs, transmit to the 
     appropriate congressional committees a report describing the 
     programs, projects, and activities that would have been 
     funded if the proportions provided for in this division had 
     been maintained in the appropriations. The amount 
     appropriated for the program receiving the highest percentage 
     of its authorized funding for a fiscal year shall be used as 
     the baseline for calculating the proportional deficiencies of 
     appropriations for other programs in that fiscal year.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

     SEC. 2101. SHORT TITLE.

       This subtitle may be cited as the ``Alternative Fuel 
     Vehicle Acceleration Act of 2001''.

     SEC. 2102. DEFINITIONS.

       For the purposes of this subtitle, the following 
     definitions apply:
       (1) Alternative fuel vehicle.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``alternative fuel vehicle'' means a motor vehicle 
     that is powered--
       (i) in whole or in part by electricity, including 
     electricity supplied by a fuel cell;
       (ii) by liquefied natural gas;
       (iii) by compressed natural gas;
       (iv) by liquefied petroleum gas;
       (v) by hydrogen;
       (vi) by methanol or ethanol at no less than 85 percent by 
     volume; or
       (vii) by propane.
       (B) Exclusions.--The term ``alternative fuel vehicle'' does 
     not include--
       (i) any vehicle designed to operate solely on gasoline or 
     diesel derived from fossil fuels, regardless of whether it 
     can also be operated on an alternative fuel; or
       (ii) any vehicle that the Secretary determines, by rule, 
     does not yield substantial environmental benefits over a 
     vehicle operating solely on gasoline or diesel derived from 
     fossil fuels.
       (2) Pilot program.--The term ``pilot program'' means the 
     competitive grant program established under section 2103.
       (3) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
     sulfur diesel vehicle'' means a vehicle powered by a heavy-
     duty diesel engine that--
       (A) is fueled by diesel fuel which contains sulfur at not 
     more than 15 parts per million; and
       (B) emits not more than the lesser of--
       (i) for vehicles manufactured in--

       (I) model years 2001 through 2003, 3.0 grams per brake 
     horsepower-hour of nonmethane hydrocarbons and oxides of 
     nitrogen and .01 grams per brake horsepower-hour of 
     particulate matter; and
       (II) 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 emissions of nonmethane hydrocarbons, oxides of 
     nitrogen, and particulate matter of the best performing 
     technology of ultra-low sulfur diesel vehicles of the same 
     type that are commercially available.

     SEC. 2103. PILOT PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     competitive grant pilot program to provide not more than 15 
     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.--Grants under this section may be used 
     for the following purposes:
       (1) The acquisition of alternative fuel vehicles, 
     including--
       (A) passenger vehicles;
       (B) buses used for public transportation or transportation 
     to and from schools;
       (C) delivery vehicles for goods or services;
       (D) ground support vehicles at public airports, including 
     vehicles to carry baggage or push airplanes away from 
     terminal gates; and
       (E) motorized two-wheel bicycles, scooters, or other 
     vehicles for use by law enforcement personnel or other State 
     or local government or metropolitan transportation authority 
     employees.
       (2) The acquisition of ultra-low sulfur diesel vehicles.
       (3) Infrastructure necessary to directly support an 
     alternative fuel vehicle project funded by the grant, 
     including fueling and other support equipment.
       (4) Operation and maintenance of vehicles, infrastructure, 
     and equipment acquired as part of a project funded by the 
     grant.
       (c) Applications.--
       (1) Requirements.--The Secretary shall issue requirements 
     for applying for grants under the pilot program. At a 
     minimum, the Secretary shall require that applications be 
     submitted by the head of a State or local government or a 
     metropolitan transportation authority, or any combination 
     thereof, and shall include--
       (A) at least one project to enable passengers or goods to 
     be transferred directly from one alternative fuel vehicle or 
     ultra-low sulfur diesel vehicle to another in a linked 
     transportation system;
       (B) a description of the projects proposed in the 
     application, including how they meet the requirements of this 
     subtitle;
       (C) an estimate of the ridership or degree of use of the 
     projects proposed in the application;
       (D) an estimate of the air pollution emissions reduced and 
     fossil fuel displaced as a result of the projects proposed in 
     the application, and a plan to collect and disseminate 
     environmental data, related to the projects to be funded 
     under the grant, over the life of the projects;
       (E) a description of how the projects proposed in the 
     application will be sustainable without Federal assistance 
     after the completion of the term of the grant;
       (F) a complete description of the costs of each project 
     proposed in the application, including acquisition, 
     construction, operation, and maintenance costs over the 
     expected life of the project;
       (G) a description of which costs of the projects proposed 
     in the application will be supported by Federal assistance 
     under this subtitle; and
       (H) 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 projects, and a 
     commitment by the applicant to use such fuel in carrying out 
     the projects.
       (2) Partners.--An applicant under paragraph (1) may carry 
     out projects under the pilot program in partnership with 
     public and private entities.
       (d) Selection Criteria.--In evaluating applications under 
     the pilot program, the Secretary shall consider each 
     applicant's previous experience with similar projects and 
     shall give priority consideration to applications that--
       (1) are most likely to maximize protection of the 
     environment;
       (2) demonstrate the greatest commitment on the part of the 
     applicant to ensure funding for the proposed projects and the 
     greatest likelihood that each project proposed in the 
     application will be maintained or expanded after Federal 
     assistance under this subtitle is completed; and
       (3) exceed the minimum requirements of subsection 
     (c)(1)(A).

[[Page H5064]]

       (e) Pilot Project Requirements.--
       (1) Maximum amount.--The Secretary shall not provide more 
     than $20,000,000 in Federal assistance under the pilot 
     program to any applicant.
       (2) Cost sharing.--The Secretary shall not provide more 
     than 50 percent of the cost, incurred during the period of 
     the grant, of any project under the pilot program.
       (3) Maximum period of grants.--The Secretary shall not fund 
     any applicant under the pilot program for more than 5 years.
       (4) Deployment and distribution.--The Secretary shall seek 
     to the maximum extent practicable to achieve nationwide 
     deployment of alternative fuel vehicles through the pilot 
     program, and shall 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 3 months 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 within 6 
     months of the publication of the notice.
       (2) Selection.--Not later than 6 months after the date by 
     which applications for grants are due, the Secretary shall 
     select by competitive, peer review 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 percent and not more than 25 percent of the grant 
     funding made available under this section for the acquisition 
     of ultra-low sulfur diesel vehicles.

     SEC. 2104. REPORTS TO CONGRESS.

       (a) Initial Report.--Not later than 2 months after the date 
     grants are awarded under this subtitle, the Secretary shall 
     transmit to the appropriate congressional committees 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 transmit to the 
     appropriate congressional committees a report containing an 
     evaluation of the effectiveness of the pilot program, 
     including an assessment of the benefits to the environment 
     derived from the projects included in the pilot program as 
     well as an estimate of the potential benefits to the 
     environment to be derived from widespread application of 
     alternative fuel vehicles and ultra-low sulfur diesel 
     vehicles.

     SEC. 2105. AUTHORIZATION OF APPROPRIATIONS.

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

          Subtitle B--Distributed Power Hybrid Energy Systems

     SEC. 2121. FINDINGS.

       The Congress makes the following findings:
       (1) Our ability to take advantage of our renewable, 
     indigenous resources in a cost-effective manner can be 
     greatly advanced through systems that compensate for the 
     intermittent nature of these resources through distributed 
     power hybrid systems.
       (2) Distributed power hybrid systems can--
       (A) shelter consumers from temporary energy price 
     volatility created by supply and demand mismatches;
       (B) increase the reliability of energy supply; and
       (C) address significant local differences in power and 
     economic development needs and resource availability that 
     exist throughout the United States.
       (3) Realizing these benefits will require a concerted and 
     integrated effort to remove market barriers to adopting 
     distributed power hybrid systems by--
       (A) developing the technological foundation that enables 
     designing, testing, certifying, and operating distributed 
     power hybrid systems; and
       (B) providing the policy framework that reduces such 
     barriers.
       (4) While many of the individual distributed power hybrid 
     systems components are either available or under development 
     in existing private and public sector programs, the 
     capabilities to integrate these components into workable 
     distributed power hybrid systems that maximize benefits to 
     consumers in a safe manner often are not coherently being 
     addressed.

     SEC. 2122. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``distributed power hybrid system'' means a 
     system using 2 or more distributed power sources, operated 
     together with associated supporting equipment, including 
     storage equipment, and software necessary to provide electric 
     power onsite and to an electric distribution system; and
       (2) the term ``distributed power source'' means an 
     independent electric energy source of usually 10 megawatts or 
     less located close to a residential, commercial, or 
     industrial load center, including--
       (A) reciprocating engines;
       (B) turbines;
       (C) microturbines;
       (D) fuel cells;
       (E) solar electric systems;
       (F) wind energy systems;
       (G) biopower systems;
       (H) geothermal power systems; or
       (I) combined heat and power systems.

     SEC. 2123. STRATEGY.

       (a) Requirement.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary shall develop and 
     transmit to the Congress a distributed power hybrid systems 
     strategy showing--
       (1) needs best met with distributed power hybrid systems 
     configurations, especially systems including one or more 
     solar or renewable power sources; and
       (2) technology gaps and barriers (including barriers to 
     efficient connection with the power grid) that hamper the use 
     of distributed power hybrid systems.
       (b) Elements.--The strategy shall provide for development 
     of--
       (1) system integration tools (including databases, computer 
     models, software, sensors, and controls) needed to plan, 
     design, build, and operate distributed power hybrid systems 
     for maximum benefits;
       (2) tests of distributed power hybrid systems, power parks, 
     and microgrids, including field tests and cost-shared 
     demonstrations with industry;
       (3) design tools to characterize the benefits of 
     distributed power hybrid systems for consumers, to reduce 
     testing needs, to speed commercialization, and to generate 
     data characterizing grid operations, including 
     interconnection requirements;
       (4) precise resource assessment tools to map local 
     resources for distributed power hybrid systems; and
       (5) a comprehensive research, development, demonstration, 
     and commercial application program to ensure the reliability, 
     efficiency, and environmental integrity of distributed energy 
     resources, focused on filling gaps in distributed power 
     hybrid systems technologies identified under subsection 
     (a)(2), which may include--
       (A) integration of a wide variety of advanced technologies 
     into distributed power hybrid systems;
       (B) energy storage devices;
       (C) environmental control technologies;
       (D) interconnection standards, protocols, and equipment; 
     and
       (E) ancillary equipment for dispatch and control.
       (c) Implementation and Integration.--The Secretary shall 
     implement the strategy transmitted under subsection (a) and 
     the research program under subsection (b)(5). Activities 
     pursuant to the strategy shall be integrated with other 
     activities of the Department's Office of Power Technologies.

     SEC. 2124. HIGH POWER DENSITY INDUSTRY PROGRAM.

       (a) In General.--The Secretary shall develop and implement 
     a comprehensive research, development, demonstration, and 
     commercial application program to improve energy efficiency, 
     reliability, and environmental responsibility in high power 
     density industries, such as data centers, server farms, 
     telecommunications facilities, and heavy industry.
       (b) Areas.--In carrying out this section, the Secretary 
     shall consider technologies that provide--
       (1) significant improvement in efficiency of high power 
     density facilities, and in data and telecommunications 
     centers, using advanced thermal control technologies;
       (2) significant improvements in air-conditioning efficiency 
     in facilities such as data centers and telecommunications 
     facilities;
       (3) significant advances in peak load reduction; and
       (4) advanced real time metering and load management and 
     control devices.
       (c) Implementation and Integration.--Activities pursuant to 
     this program shall be integrated with other activities of the 
     Department's Office of Power Technologies.

     SEC. 2125. MICRO-COGENERATION ENERGY TECHNOLOGY.

       The Secretary shall make competitive, merit-based grants to 
     consortia of private sector entities for the development of 
     micro-cogeneration energy technology. The consortia shall 
     explore the creation of small-scale combined heat and power 
     through the use of residential heating appliances. There are 
     authorized to be appropriated to the Secretary $20,000,000 to 
     carry out this section, to remain available until expended.

     SEC. 2126. PROGRAM PLAN.

       Within 4 months after the date of enactment of this Act, 
     the Secretary, in consultation with other appropriate Federal 
     agencies, shall prepare and transmit to the Congress a 5-year 
     program plan to guide activities under this subtitle. In 
     preparing the program plan, the Secretary shall consult with 
     appropriate representatives of the distributed energy 
     resources, power transmission, and high power density 
     industries to prioritize appropriate program areas. The 
     Secretary shall also seek the advice of utilities, energy 
     services providers, manufacturers, institutions of higher 
     learning, other appropriate State and local agencies, 
     environmental organizations, professional and technical 
     societies, and any other persons the Secretary considers 
     appropriate.

[[Page H5065]]

     SEC. 2127. REPORT.

       Two years after date of enactment of this Act and at two 
     year intervals thereafter, the Secretary, jointly with other 
     appropriate Federal agencies, shall transmit a report to 
     Congress describing the progress made to achieve the purposes 
     of this subtitle.

     SEC. 2128. VOLUNTARY CONSENSUS STANDARDS.

       Not later than 2 years after the date of enactment of this 
     Act, the Secretary, in consultation with the National 
     Institute of Standards and Technology, shall work with the 
     Institute of Electrical and Electronic Engineers and other 
     standards development organizations toward the development of 
     voluntary consensus standards for distributed energy systems 
     for use in manufacturing and using equipment and systems for 
     connection with electric distribution systems, for obtaining 
     electricity from, or providing electricity to, such systems.

           Subtitle C--Secondary Electric Vehicle Battery Use

     SEC. 2131. DEFINITIONS.

       For purposes of this subtitle, the term--
       (1) ``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; and
       (2) ``associated equipment'' means equipment located at the 
     location where the batteries will be used that is necessary 
     to enable the use of the energy stored in the batteries.

     SEC. 2132. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE 
                   BATTERY USE PROGRAM.

       (a) Program.--The Secretary shall establish and conduct a 
     research, development, and demonstration program for the 
     secondary use of batteries where the original use of such 
     batteries was in transportation applications. Such program 
     shall be--
       (1) designed to demonstrate the use of batteries in 
     secondary application, including utility and commercial power 
     storage and power quality;
       (2) structured to evaluate the performance, including 
     longevity of useful service life and costs, of such batteries 
     in field operations, and evaluate the necessary supporting 
     infrastructure, including disposal and reuse of batteries; 
     and
       (3) coordinated with ongoing secondary battery use programs 
     underway at the national laboratories and in industry.
       (b) Solicitation.--(1) Not later than 6 months after the 
     date of the enactment of this Act, the Secretary shall 
     solicit proposals to demonstrate the secondary use of 
     batteries and associated equipment and supporting 
     infrastructure in geographic locations throughout the United 
     States. The Secretary may make additional solicitations for 
     proposals if the Secretary determines that such solicitations 
     are necessary to carry out this section.
       (2)(A) Proposals submitted in response to a solicitation 
     under this section shall include--
       (i) a description of the project, including the batteries 
     to be used in the project, the proposed locations and 
     applications for the batteries, the number of batteries to be 
     demonstrated, and the type, characteristics, and estimated 
     life-cycle costs of the batteries compared to other energy 
     storage devices currently used;
       (ii) the contribution, if any, of State or local 
     governments and other persons to the demonstration project;
       (iii) the type of associated equipment to be demonstrated 
     and the type of supporting infrastructure to be demonstrated; 
     and
       (iv) any other information the Secretary considers 
     appropriate.
       (B) If the proposal includes a lease arrangement, the 
     proposal shall indicate the terms of such lease arrangement 
     for the batteries and associated equipment.
       (c) Selection of Proposals.--(1)(A) The Secretary shall, 
     not later than 3 months after the closing date established by 
     the Secretary for receipt of proposals under subsection (b), 
     select at least 5 proposals to receive financial assistance 
     under this section.
       (B) No one project selected under this section shall 
     receive more than 25 percent of the funds authorized under 
     this section. No more than 3 projects selected under this 
     section shall demonstrate the same battery type.
       (2) In selecting a proposal under this section, the 
     Secretary shall consider--
       (A) the ability of the proposer to acquire the batteries 
     and associated equipment and to successfully manage and 
     conduct the demonstration project, including the reporting 
     requirements set forth in paragraph (3)(B);
       (B) the geographic and climatic diversity of the projects 
     selected;
       (C) the long-term technical and competitive viability of 
     the batteries to be used in the project and of the original 
     manufacturer of such batteries;
       (D) the suitability of the batteries for their intended 
     uses;
       (E) the technical performance of the battery, including the 
     expected additional useful life and the battery's ability to 
     retain energy;
       (F) the environmental effects of the use of and disposal of 
     the batteries proposed to be used in the project selected;
       (G) the extent of involvement of State or local government 
     and other persons in the demonstration project and whether 
     such involvement will--
       (i) permit a reduction of the Federal cost share per 
     project; or
       (ii) otherwise be used to allow the Federal contribution to 
     be provided to demonstrate a greater number of batteries; and
       (H) such other criteria as the Secretary considers 
     appropriate.
       (3) Conditions.--The Secretary shall require that--
       (A) as a part of a demonstration project, the users of the 
     batteries provide to the proposer information regarding the 
     operation, maintenance, performance, and use of the 
     batteries, and the proposer provide such information to the 
     battery manufacturer, for 3 years after the beginning of the 
     demonstration project;
       (B) the proposer provide to the Secretary such information 
     regarding the operation, maintenance, performance, and use of 
     the batteries as the Secretary may request during the period 
     of the demonstration project; and
       (C) the proposer provide at least 50 percent of the costs 
     associated with the proposal.

     SEC. 2133. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary, 
     from amounts authorized under section 2161(a), for purposes 
     of this subtitle--
       (1) $1,000,000 for fiscal year 2002;
       (2) $7,000,000 for fiscal year 2003; and
       (3) $7,000,000 for fiscal year 2004.
     Such appropriations may remain available until expended.

                     Subtitle D--Green School Buses

     SEC. 2141. SHORT TITLE.

       This subtitle may be cited as the ``Clean Green School Bus 
     Act of 2001''.

     SEC. 2142. ESTABLISHMENT OF PILOT PROGRAM.

       (a) Establishment.--The Secretary shall establish a pilot 
     program for awarding grants on a competitive basis to 
     eligible entities for the demonstration and commercial 
     application of alternative fuel school buses and ultra-low 
     sulfur diesel school buses.
       (b) Requirements.--Not later than 3 months after the date 
     of the enactment of this Act, the Secretary 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 
     certification requirements to ensure compliance with this 
     subtitle.
       (c) Solicitation.--Not later than 6 months after the date 
     of the enactment of this Act, the Secretary shall solicit 
     proposals for grants under this section.
       (d) Eligible Recipients.--A grant shall be awarded under 
     this section only--
       (1) to a local governmental entity responsible for 
     providing school bus service for one or more public school 
     systems; or
       (2) jointly to an entity described in paragraph (1) and a 
     contracting entity that provides school bus service to the 
     public school system or systems.
       (e) Types of Grants.--
       (1) In general.--Grants under this section shall be for the 
     demonstration and commercial application of technologies to 
     facilitate the use of alternative fuel school buses and 
     ultra-low sulfur diesel school buses in lieu of buses 
     manufactured before model year 1977 and diesel-powered buses 
     manufactured before model year 1991.
       (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 Secretary shall 
     give priority to awarding grants to applicants who can 
     demonstrate the use of alternative fuel buses and ultra-low 
     sulfur diesel school buses in lieu of buses manufactured 
     before model year 1977.
       (f) Conditions of Grant.--A grant provided under this 
     section shall include the following conditions:
       (1) 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) 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 school buses, including State taxes and contract fees; 
     and
       (B) to provide--
       (i) up to 10 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will only be available to the grant 
     recipient; and
       (ii) up to 15 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will be available to the grant 
     recipient and to other bus fleets.
       (3) The grant recipient shall be required to provide at 
     least the lesser of 15 percent of the total cost of each bus 
     received or $15,000 per bus.
       (4) In the case of a grant recipient receiving a grant to 
     demonstrate ultra-low sulfur diesel school buses, the grant 
     recipient shall be required to provide 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 purposes of the grant, and a commitment by 
     the applicant to use such fuel in carrying out the purposes 
     of the grant.
       (g) Buses.--Funding under a grant made under this section 
     may be used to demonstrate the use only of new alternative 
     fuel school buses or ultra-low sulfur diesel school buses--
       (1) with a gross vehicle weight of greater than 14,000 
     pounds;
       (2) that are powered by a heavy duty engine;

[[Page H5066]]

       (3) that, in the case of alternative fuel school buses, 
     emit not more than--
       (A) for buses manufactured in model years 2001 and 2002, 
     2.5 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (B) for buses manufactured in model years 2003 through 
     2006, 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
       (4) that, in the case of ultra-low sulfur diesel school 
     buses, emit not more than--
       (A) for buses manufactured in model years 2001 through 
     2003, 3.0 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (B) for buses 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,
     except that under no circumstances shall buses be acquired 
     under this section that emit nonmethane hydrocarbons, oxides 
     of nitrogen, or particulate matter at a rate greater than the 
     best performing technology of ultra-low sulfur diesel school 
     buses commercially available at the time the grant is made.
       (h) Deployment and Distribution.--The Secretary shall seek 
     to the maximum extent practicable to achieve nationwide 
     deployment of alternative fuel school buses through the 
     program under this section, and shall 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) Limit on Funding.--The Secretary shall provide not less 
     than 20 percent and not more than 25 percent of the grant 
     funding made available under this section for any fiscal year 
     for the acquisition of ultra-low sulfur diesel school buses.
       (j) Definitions.--For purposes of this section--
       (1) the term ``alternative fuel school bus'' means a bus 
     powered substantially by electricity (including electricity 
     supplied by a fuel cell), or by liquefied natural gas, 
     compressed natural gas, liquefied petroleum gas, hydrogen, 
     propane, or methanol or ethanol at no less than 85 percent by 
     volume; and
       (2) the term ``ultra-low sulfur diesel school bus'' means a 
     school bus powered by diesel fuel which contains sulfur at 
     not more than 15 parts per million.

     SEC. 2143. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION 
                   PROGRAM.

       (a) Establishment of Program.--The Secretary shall 
     establish a program for entering into cooperative agreements 
     with private sector fuel cell bus developers for the 
     development of fuel cell-powered school buses, and 
     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) Funding.--No more than $25,000,000 of the amounts 
     authorized under section 2144 may be used for carrying out 
     this section for the period encompassing fiscal years 2002 
     through 2006.
       (d) Reports to Congress.--Not later than 3 years after the 
     date of the enactment of this Act, and not later than October 
     1, 2006, the Secretary shall transmit to the appropriate 
     congressional committees 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.

     SEC. 2144. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     for carrying out this subtitle, to remain available until 
     expended--
       (1) $40,000,000 for fiscal year 2002;
       (2) $50,000,000 for fiscal year 2003;
       (3) $60,000,000 for fiscal year 2004;
       (4) $70,000,000 for fiscal year 2005; and
       (5) $80,000,000 for fiscal year 2006.

            Subtitle E--Next Generation Lighting Initiative

     SEC. 2151. SHORT TITLE.

       This subtitle may be cited as ``Next Generation Lighting 
     Initiative Act''.

     SEC. 2152. DEFINITION.

       In this subtitle, the term ``Lighting Initiative'' means 
     the ``Next Generation Lighting Initiative'' established under 
     section 2153(a).

     SEC. 2153. NEXT GENERATION LIGHTING INITIATIVE.

       (a) Establishment.--The Secretary is authorized to 
     establish a lighting initiative to be known as the ``Next 
     Generation Lighting Initiative'' to research, develop, and 
     conduct demonstration activities on advanced lighting 
     technologies, including white light emitting diodes.
       (b) Research Objectives.--The research objectives of the 
     Lighting Initiative shall be to develop, by 2011, advanced 
     lighting technologies that, compared to incandescent and 
     fluorescent lighting technologies as of the date of the 
     enactment of this Act, are--
       (1) longer lasting;
       (2) more energy-efficient; and
       (3) cost-competitive.

     SEC. 2154. STUDY.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary, in consultation with 
     other Federal agencies, as appropriate, shall complete a 
     study on strategies for the development and commercial 
     application of advanced lighting technologies. The Secretary 
     shall request a review by the National Academies of Sciences 
     and Engineering of the study under this subsection, and shall 
     transmit the results of the study to the appropriate 
     congressional committees.
       (b) Requirements.--The study shall--
       (1) develop a comprehensive strategy to implement the 
     Lighting Initiative; and
       (2) identify the research and development, manufacturing, 
     deployment, and marketing barriers that must be overcome to 
     achieve a goal of a 25 percent market penetration by advanced 
     lighting technologies into the incandescent and fluorescent 
     lighting market by the year 2012.
       (c) Implementation.--As soon as practicable after the 
     review of the study under subsection (a) is transmitted to 
     the Secretary by the National Academies of Sciences and 
     Engineering, the Secretary shall adapt the implementation of 
     the Lighting Initiative taking into consideration the 
     recommendations of the National Academies of Sciences and 
     Engineering.

     SEC. 2155. GRANT PROGRAM.

       (a) In General.--Subject to section 2603 of this Act, the 
     Secretary may make merit-based competitive grants to firms 
     and research organizations that conduct research, 
     development, and demonstration projects related to advanced 
     lighting technologies.
       (b) Annual Review.--
       (1) In general.--An annual independent review of the grant-
     related activities of firms and research organizations 
     receiving a grant under this section shall be conducted by a 
     committee appointed by the Secretary under the Federal 
     Advisory Committee Act (5 U.S.C. App.), or, at the request of 
     the Secretary, a committee appointed by the National 
     Academies of Sciences and Engineering.
       (2) Requirements.--Using clearly defined standards 
     established by the Secretary, the review shall assess 
     technology advances and progress toward commercialization of 
     the grant-related activities of firms or research 
     organizations during each fiscal year of the grant program.
       (c) Technical and Financial Assistance.--The national 
     laboratories and other Federal agencies, as appropriate, 
     shall cooperate with and provide technical and financial 
     assistance to firms and research organizations conducting 
     research, development, and demonstration projects carried out 
     under this subtitle.

    Subtitle F--Department of Energy Authorization of Appropriations

     SEC. 2161. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--In addition to amounts 
     authorized to be appropriated under section 2105, section 
     2125, and section 2144, there are authorized to be 
     appropriated to the Secretary for subtitle B, subtitle C, 
     subtitle E, and for Energy Conservation operation and 
     maintenance (including Building Technology, State and 
     Community Sector (Nongrants), Industry Sector, Transportation 
     Sector, Power Technologies, and Policy and Management) 
     $625,000,000 for fiscal year 2002, $700,000,000 for fiscal 
     year 2003, and $800,000,000 for fiscal year 2004, to remain 
     available until expended.
       (b) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Building Technology, State and Community Sector--
       (A) Residential Building Energy Codes;
       (B) Commercial Building Energy Codes;
       (C) Lighting and Appliance Standards;
       (D) Weatherization Assistance Program; or
       (E) State Energy Program; or
       (2) Federal Energy Management Program.

Subtitle G--Environmental Protection Agency Office of Air and Radiation 
                    Authorization of Appropriations

     SEC. 2171. SHORT TITLE.

       This subtitle may be cited as the ``Environmental 
     Protection Agency Office of Air and Radiation Authorization 
     Act of 2001''.

     SEC. 2172. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the 
     Administrator for Office of Air and Radiation Climate Change 
     Protection Programs $121,942,000 for fiscal year 2002, 
     $126,800,000 for fiscal year 2003, and $131,800,000 for 
     fiscal year 2004 to remain available until expended, of 
     which--
       (1) $52,731,000 for fiscal year 2002, $54,800,000 for 
     fiscal year 2003, and $57,000,000 for fiscal year 2004 shall 
     be for Buildings;
       (2) $32,441,000 for fiscal year 2002, $33,700,000 for 
     fiscal year 2003, and $35,000,000 for fiscal year 2004 shall 
     be for Transportation;
       (3) $27,295,000 for fiscal year 2002, $28,400,000 for 
     fiscal year 2003, and $29,500,000 for fiscal year 2004 shall 
     be for Industry;
       (4) $1,700,000 for fiscal year 2002, $1,800,000 for fiscal 
     year 2003, and $1,900,000 for fiscal year 2004 shall be for 
     Carbon Removal;
       (5) $2,500,000 for fiscal year 2002, $2,600,000 for fiscal 
     year 2003, and $2,700,000 for fiscal year 2004 shall be for 
     State and Local Climate; and
       (6) $5,275,000 for fiscal year 2002, $5,500,000 for fiscal 
     year 2003, and $5,700,000 for fiscal

[[Page H5067]]

     year 2004 shall be for International Capacity Building.

     SEC. 2173. LIMITS ON USE OF FUNDS.

       (a) Production or Provision of Articles or Services.--None 
     of the funds authorized to be appropriated by this subtitle 
     may be used to produce or provide articles or services for 
     the purpose of selling the articles or services to a person 
     outside the Federal Government, unless the Administrator 
     determines that comparable articles or services are not 
     available from a commercial source in the United States.
       (b) Requests for Proposals.--None of the funds authorized 
     to be appropriated by this subtitle may be used by the 
     Environmental Protection Agency to prepare or initiate 
     Requests for Proposals for a program if the program has not 
     been authorized by Congress.

     SEC. 2174. COST SHARING.

       (a) Research and Development.--Except as otherwise provided 
     in this subtitle, for research and development programs 
     carried out under this subtitle, the Administrator shall 
     require a commitment from non-Federal sources of at least 20 
     percent of the cost of the project. The Administrator may 
     reduce or eliminate the non-Federal requirement under this 
     subsection if the Administrator determines that the research 
     and development is of a basic or fundamental nature.
       (b) Demonstration and Commercial Application.--Except as 
     otherwise provided in this subtitle, the Administrator shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this subtitle to be provided from 
     non-Federal sources. The Administrator may reduce the non-
     Federal requirement under this subsection if the 
     Administrator 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 
     subtitle.
       (c) Calculation of Amount.--In calculating the amount of 
     the non-Federal commitment under subsection (a) or (b), the 
     Administrator may include personnel, services, equipment, and 
     other resources.

     SEC. 2175. LIMITATION ON DEMONSTRATION AND COMMERCIAL 
                   APPLICATIONS OF ENERGY TECHNOLOGY.

       The Administrator shall provide funding for scientific or 
     energy demonstration or commercial application of energy 
     technology programs, projects, or activities of the Office of 
     Air and Radiation only for technologies or processes that can 
     be reasonably expected to yield new, measurable benefits to 
     the cost, efficiency, or performance of the technology or 
     process.

     SEC. 2176. REPROGRAMMING.

       (a) Authority.--The Administrator may use amounts 
     appropriated under this subtitle for a program, project, or 
     activity other than the program, project, or activity for 
     which such amounts were appropriated only if--
       (1) the Administrator has transmitted to the appropriate 
     congressional committees a report described in subsection (b) 
     and a period of 30 days has elapsed after such committees 
     receive the report;
       (2) amounts used for the program, project, or activity do 
     not exceed--
       (A) 105 percent of the amount authorized for the program, 
     project, or activity; or
       (B) $250,000 more than the amount authorized for the 
     program, project, or activity,
     whichever is less; and
       (3) the program, project, or activity has been presented 
     to, or requested of, the Congress by the Administrator.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this subtitle exceed the total 
     amount authorized to be appropriated by this subtitle.
       (2) Funds appropriated pursuant to this subtitle may not be 
     used for an item for which Congress has declined to authorize 
     funds.

     SEC. 2177. BUDGET REQUEST FORMAT.

       The Administrator shall provide to the appropriate 
     congressional committees, to be transmitted at the same time 
     as the Environmental Protection Agency's annual budget 
     request submission, a detailed justification for budget 
     authorization for the programs, projects, and activities for 
     which funds are authorized by this subtitle. Each such 
     document shall include, for the fiscal year for which funding 
     is being requested and for the 2 previous fiscal years--
       (1) a description of, and funding requested or allocated 
     for, each such program, project, or activity;
       (2) an identification of all recipients of funds to conduct 
     such programs, projects, and activities; and
       (3) an estimate of the amounts to be expended by each 
     recipient of funds identified under paragraph (2).

     SEC. 2178. OTHER PROVISIONS.

       (a) Annual Operating Plan and Reports.--The Administrator 
     shall provide simultaneously to the Committee on Science of 
     the House of Representatives--
       (1) any annual operating plan or other operational funding 
     document, including any additions or amendments thereto; and
       (2) any report relating to the environmental research or 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     programs, projects, or activities of the Environmental 
     Protection Agency,
     provided to any committee of Congress.
       (b) Notice of Reorganization.--The Administrator shall 
     provide notice to the appropriate congressional committees 
     not later than 15 days before any reorganization of any 
     environmental research or development, scientific or energy 
     research, development, or demonstration, or commercial 
     application of energy technology program, project, or 
     activity of the Office of Air and Radiation.

          Subtitle H--National Building Performance Initiative

     SEC. 2181. NATIONAL BUILDING PERFORMANCE INITIATIVE.

       (a) Interagency Group.--Not later than 3 months after the 
     date of the enactment of this Act, the Director of the Office 
     of Science and Technology Policy shall establish an 
     Interagency Group responsible for the development and 
     implementation of a National Building Performance Initiative 
     to address energy conservation and research and development 
     and related issues. The National Institute of Standards and 
     Technology shall provide necessary administrative support for 
     the Interagency Group.
       (b) Plan.--Not later than 9 months after the date of the 
     enactment of this Act, the Interagency Group shall transmit 
     to the Congress a multiyear implementation plan describing 
     the Federal role in reducing the costs, including energy 
     costs, of using, owning, and operating commercial, 
     institutional, residential, and industrial buildings by 30 
     percent by 2020. The plan shall include--
       (1) research, development, and demonstration of systems and 
     materials for new construction and retrofit, on the building 
     envelope and components; and
       (2) the collection and dissemination in a usable form of 
     research results and other pertinent information to the 
     design and construction industry, government officials, and 
     the general public.
       (c) National Building Performance Advisory Committee.--A 
     National Building Performance Advisory Committee shall be 
     established to advise on creation of the plan, review 
     progress made under the plan, advise on any improvements that 
     should be made to the plan, and report to the Congress on 
     actions that have been taken to advance the Nation's 
     capability in furtherance of the plan. The members shall 
     include representatives of a broad cross-section of interests 
     such as the research, technology transfer, architectural, 
     engineering, and financial communities; materials and systems 
     suppliers; State, county, and local governments; the 
     residential, multifamily, and commercial sectors of the 
     construction industry; and the insurance industry.
       (d) Report.--The Interagency Group shall, within 90 days 
     after the end of each fiscal year, transmit a report to the 
     Congress describing progress achieved during the preceding 
     fiscal year by government at all levels and by the private 
     sector, toward implementing the plan developed under 
     subsection (b), and including any amendments to the plan.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

     SEC. 2201. SHORT TITLE.

       This subtitle may be cited as the ``Robert S. Walker and 
     George E. Brown, Jr. Hydrogen Energy Act of 2001''.

     SEC. 2202. PURPOSES.

       Section 102(b) of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:
       ``(b) Purposes.--The purposes of this Act are--
       ``(1) to direct the Secretary to conduct research, 
     development, and demonstration activities leading to the 
     production, storage, transportation, and use of hydrogen for 
     industrial, commercial, residential, transportation, and 
     utility applications;
       ``(2) to direct the Secretary to develop a program of 
     technology assessment, information dissemination, and 
     education in which Federal, State, and local agencies, 
     members of the energy, transportation, and other industries, 
     and other entities may participate; and
       ``(3) to develop methods of hydrogen production that 
     minimize adverse environmental impacts, with emphasis on 
     efficient and cost-effective production from renewable energy 
     resources.''.

     SEC. 2203. DEFINITIONS.

       Section 102(c) of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     paragraphs (2) through (4), respectively; and
       (2) by inserting before paragraph (2), as so redesignated 
     by paragraph (1) of this section, the following new 
     paragraph:
       ``(1) `advisory committee' means the advisory committee 
     established under section 108;''.

     SEC. 2204. REPORTS TO CONGRESS.

       Section 103 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

[[Page H5068]]

     ``SEC. 103. REPORTS TO CONGRESS.

       ``(a) Requirement.--Not later than 1 year after the date of 
     the enactment of the Robert S. Walker and George E. Brown, 
     Jr. Hydrogen Energy Act of 2001, and biennially thereafter, 
     the Secretary shall transmit to Congress a detailed report on 
     the status and progress of the programs and activities 
     authorized under this Act.
       ``(b) Contents.--A report under subsection (a) shall 
     include, in addition to any views and recommendations of the 
     Secretary--
       ``(1) an assessment of the extent to which the program is 
     meeting the purposes specified in section 102(b);
       ``(2) a determination of the effectiveness of the 
     technology assessment, information dissemination, and 
     education program established under section 106;
       ``(3) an analysis of Federal, State, local, and private 
     sector hydrogen-related research, development, and 
     demonstration activities to identify productive areas for 
     increased intergovernmental and private-public sector 
     collaboration; and
       ``(4) recommendations of the advisory committee for any 
     improvements needed in the programs and activities authorized 
     by this Act.''.

     SEC. 2205. HYDROGEN RESEARCH AND DEVELOPMENT.

       Section 104 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.

       ``(a) Establishment of Program.--The Secretary shall 
     conduct a hydrogen research and development program relating 
     to production, storage, transportation, and use of hydrogen, 
     with the goal of enabling the private sector to demonstrate 
     the technical feasibility of using hydrogen for industrial, 
     commercial, residential, transportation, and utility 
     applications.
       ``(b) Elements.--In conducting the program authorized by 
     this section, the Secretary shall--
       ``(1) give particular attention to developing an 
     understanding and resolution of critical technical issues 
     preventing the introduction of hydrogen as an energy carrier 
     into the marketplace;
       ``(2) initiate or accelerate existing research and 
     development in critical technical issues that will contribute 
     to the development of more economical hydrogen production, 
     storage, transportation, and use, including critical 
     technical issues with respect to production (giving priority 
     to those production techniques that use renewable energy 
     resources as their primary source of energy for hydrogen 
     production), liquefaction, transmission, distribution, 
     storage, and use (including use of hydrogen in surface 
     transportation); and
       ``(3) survey private sector and public sector hydrogen 
     research and development activities worldwide, and take steps 
     to ensure that research and development activities under this 
     section do not--
       ``(A) duplicate any available research and development 
     results; or
       ``(B) displace or compete with the privately funded 
     hydrogen research and development activities of United States 
     industry.
       ``(c) Evaluation of Technologies.--The Secretary shall 
     evaluate, for the purpose of determining whether to undertake 
     or fund research and development activities under this 
     section, any reasonable new or improved technology that could 
     lead or contribute to the development of economical hydrogen 
     production, storage, transportation, and use.
       ``(d) Research and Development Support.--The Secretary is 
     authorized to arrange for tests and demonstrations and to 
     disseminate to researchers and developers information, data, 
     and other materials necessary to support the research and 
     development activities authorized under this section and 
     other efforts authorized under this Act, consistent with 
     section 106 of this Act.
       ``(e) Competitive Peer Review.--The Secretary shall carry 
     out or fund research and development activities under this 
     section only on a competitive basis using peer review.
       ``(f) Cost Sharing.--For research and development programs 
     carried out under this section, 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.''.

     SEC. 2206. DEMONSTRATIONS.

       Section 105 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) in subsection (a), by striking ``, preferably in self-
     contained locations,'';
       (2) in subsection (b), by striking ``at self-contained 
     sites'' and inserting ``, which shall include a fuel cell bus 
     demonstration program to address hydrogen production, 
     storage, and use in transit bus applications''; and
       (3) in subsection (c), by inserting ``Non-Federal Funding 
     Requirement.--'' after ``(c)''.

     SEC. 2207. TECHNOLOGY TRANSFER.

       Section 106 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 106. TECHNOLOGY ASSESSMENT, INFORMATION DISSEMINATION, 
                   AND EDUCATION PROGRAM.

       ``(a) Program.--The Secretary shall, in consultation with 
     the advisory committee, conduct a program designed to 
     accelerate wider application of hydrogen production, storage, 
     transportation, and use technologies, including application 
     in foreign countries to increase the global market for the 
     technologies and foster global economic development without 
     harmful environmental effects.
       ``(b) Information.--The Secretary, in carrying out the 
     program authorized by subsection (a), shall--
       ``(1) undertake an update of the inventory and assessment, 
     required under section 106(b)(1) of this Act as in effect 
     before the date of the enactment of the Robert S. Walker and 
     George E. Brown, Jr. Hydrogen Energy Act of 2001, of hydrogen 
     technologies and their commercial capability to economically 
     produce, store, transport, or use hydrogen in industrial, 
     commercial, residential, transportation, and utility sector; 
     and
       ``(2) develop, with other Federal agencies as appropriate 
     and industry, an information exchange program to improve 
     technology transfer for hydrogen production, storage, 
     transportation, and use, which may consist of workshops, 
     publications, conferences, and a database for the use by the 
     public and private sectors.''.

     SEC. 2208. COORDINATION AND CONSULTATION.

       Section 107 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) by amending paragraph (1) of subsection (a) to read as 
     follows:
       ``(1) shall establish a central point for the coordination 
     of all hydrogen research, development, and demonstration 
     activities of the Department; and''; and
       (2) by amending subsection (c) to read as follows:
       ``(c) Consultation.--The Secretary shall consult with other 
     Federal agencies as appropriate, and the advisory committee, 
     in carrying out the Secretary's authorities pursuant to this 
     Act.''.

     SEC. 2209. ADVISORY COMMITTEE.

       Section 108 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 108. ADVISORY COMMITTEE.

       ``(a) Establishment.--The Secretary shall enter into 
     appropriate arrangements with the National Academies of 
     Sciences and Engineering to establish an advisory committee 
     consisting of experts drawn from domestic industry, academia, 
     Governmental laboratories, and financial, environmental, and 
     other organizations, as appropriate, to review and advise on 
     the progress made through the programs and activities 
     authorized under this Act.
       ``(b) Cooperation.--The heads of Federal agencies shall 
     cooperate with the advisory committee in carrying out this 
     section and shall furnish to the advisory committee such 
     information as the advisory committee reasonably deems 
     necessary to carry out this section.
       ``(c) Review.--The advisory committee shall review and make 
     any necessary recommendations to the Secretary on--
       ``(1) the implementation and conduct of programs and 
     activities authorized under this Act; and
       ``(2) the economic, technological, and environmental 
     consequences of the deployment of hydrogen production, 
     storage, transportation, and use systems.
       ``(d) Responsibilities of the Secretary.--The Secretary 
     shall consider, but need not adopt, any recommendations of 
     the advisory committee under subsection (c). The Secretary 
     shall provide an explanation of the reasons that any such 
     recommendations will not be implemented and include such 
     explanation in the report to Congress under section 103(a) of 
     this Act.''.

     SEC. 2210. AUTHORIZATION OF APPROPRIATIONS.

       Section 109 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Research and Development; Advisory Committee.--There 
     are authorized to be appropriated to the Secretary to carry 
     out sections 104 and 108--
       ``(1) $40,000,000 for fiscal year 2002;
       ``(2) $45,000,000 for fiscal year 2003;
       ``(3) $50,000,000 for fiscal year 2004;
       ``(4) $55,000,000 for fiscal year 2005; and
       ``(5) $60,000,000 for fiscal year 2006.
       ``(b) Demonstration.--There are authorized to be 
     appropriated to the Secretary to carry out section 105--
       ``(1) $20,000,000 for fiscal year 2002;
       ``(2) $25,000,000 for fiscal year 2003;
       ``(3) $30,000,000 for fiscal year 2004;
       ``(4) $35,000,000 for fiscal year 2005; and
       ``(5) $40,000,000 for fiscal year 2006.''.

     SEC. 2211. REPEAL.

       (a) Repeal.--Title II of the Hydrogen Future Act of 1996 is 
     repealed.
       (b) Conforming Amendment.--Section 2 of the Hydrogen Future 
     Act of 1996 is amended by striking ``titles II and III'' and 
     inserting ``title III''.

                         Subtitle B--Bioenergy

     SEC. 2221. SHORT TITLE.

       This subtitle may be cited as the ``Bioenergy Act of 
     2001''.

     SEC. 2222. FINDINGS.

       Congress finds that bioenergy has potential to help--
       (1) meet the Nation's energy needs;

[[Page H5069]]

       (2) reduce reliance on imported fuels;
       (3) promote rural economic development;
       (4) provide for productive utilization of agricultural 
     residues and waste materials, and forestry residues and 
     byproducts; and
       (5) protect the environment.

     SEC. 2223. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``bioenergy'' means energy derived from 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 and other organic 
     wastes;
       (2) the term ``biofuels'' includes liquid or gaseous fuels, 
     industrial chemicals, or both;
       (3) the term ``biopower'' includes the generation of 
     electricity or process steam or both; and
       (4) the term ``integrated bioenergy research and 
     development'' includes biopower and biofuels applications.

     SEC. 2224. AUTHORIZATION.

       The Secretary is authorized to conduct environmental 
     research and development, scientific and energy research, 
     development, and demonstration, and commercial application of 
     energy technology programs, projects, and activities related 
     to bioenergy, including biopower energy systems, biofuels 
     energy systems, and integrated bioenergy research and 
     development.

     SEC. 2225. AUTHORIZATION OF APPROPRIATIONS.

       (a) Biopower Energy Systems.--There are authorized to be 
     appropriated to the Secretary for Biopower Energy Systems 
     programs, projects, and activities--
       (1) $45,700,000 for fiscal year 2002;
       (2) $52,500,000 for fiscal year 2003;
       (3) $60,300,000 for fiscal year 2004;
       (4) $69,300,000 for fiscal year 2005; and
       (5) $79,600,000 for fiscal year 2006.
       (b) Biofuels Energy Systems.--There are authorized to be 
     appropriated to the Secretary for biofuels energy systems 
     programs, projects, and activities--
       (1) $53,500,000 for fiscal year 2002;
       (2) $61,400,000 for fiscal year 2003;
       (3) $70,600,000 for fiscal year 2004;
       (4) $81,100,000 for fiscal year 2005; and
       (5) $93,200,000 for fiscal year 2006.
       (c) Integrated Bioenergy Research and Development.--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 2002 through 2006. 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.
       (d) Integrated Applications.--Amounts authorized to be 
     appropriated under this subtitle may be used to assist in the 
     planning, design, and implementation of projects to convert 
     rice straw and barley grain into biopower or biofuels.

            Subtitle C--Transmission Infrastructure Systems

     SEC. 2241. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, 
                   DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL 
                   APPLICATION.

       (a) In General.--The Secretary shall develop and implement 
     a comprehensive research, development, demonstration, and 
     commercial application program to ensure the reliability, 
     efficiency, and environmental integrity of electrical 
     transmission systems. Such program shall include advanced 
     energy technologies and systems, high capacity 
     superconducting transmission lines and generators, advanced 
     grid reliability and efficiency technologies development, 
     technologies contributing to significant load reductions, 
     advanced metering, load management and control technologies, 
     and technology transfer and education.
       (b) Technology.--In carrying out this subtitle, the 
     Secretary may include research, development, and 
     demonstration on and commercial application of improved 
     transmission technologies including the integration of the 
     following technologies into improved transmission systems:
       (1) High temperature superconductivity.
       (2) Advanced transmission materials.
       (3) Self-adjusting equipment, processes, or software for 
     survivability, security, and failure containment.
       (4) Enhancements of energy transfer over existing lines.
       (5) Any other infrastructure technologies, as appropriate.

     SEC. 2242. PROGRAM PLAN.

       Within 4 months after the date of the enactment of this 
     Act, 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 subtitle. In 
     preparing the program plan, the Secretary shall consult with 
     appropriate representatives of the transmission 
     infrastructure systems industry to select and prioritize 
     appropriate program areas. The Secretary shall also seek the 
     advice of utilities, energy services providers, 
     manufacturers, institutions of higher learning, other 
     appropriate State and local agencies, environmental 
     organizations, professional and technical societies, and any 
     other persons as the Secretary considers appropriate.

     SEC. 2243. REPORT.

       Two years after the date of the enactment of this Act, and 
     at two year intervals thereafter, the Secretary, in 
     consultation with other appropriate Federal agencies, shall 
     transmit a report to Congress describing the progress made to 
     achieve the purposes of this subtitle and identifying any 
     additional resources needed to continue the development and 
     commercial application of transmission infrastructure 
     technologies.

    Subtitle D--Department of Energy Authorization of Appropriations

     SEC. 2261. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary for Renewable Energy operation 
     and maintenance, including activities under subtitle C, 
     Geothermal Technology Development, Hydropower, Concentrating 
     Solar Power, Photovoltaic Energy Systems, Solar Building 
     Technology Research, Wind Energy Systems, High Temperature 
     Superconducting Research and Development, Energy Storage 
     Systems, Transmission Reliability, International Renewable 
     Energy Program, Renewable Energy Production Incentive 
     Program, Renewable Program Support, National Renewable Energy 
     Laboratory, and Program Direction, and including amounts 
     authorized under the amendment made by section 2210 and 
     amounts authorized under section 2225, $535,000,000 for 
     fiscal year 2002, $639,000,000 for fiscal year 2003, and 
     $683,000,000 for fiscal year 2004, to remain available until 
     expended.
       (b) Wave Powered Electric Generation.--Within the amounts 
     authorized to be appropriated to the Secretary under 
     subsection (a), the Secretary shall carry out a research 
     program, in conjunction with other appropriate Federal 
     agencies, on wave powered electric generation.
       (c) Assessment of Renewable Energy Resources.--
       (1) In general.--Using funds authorized in subsection (a), 
     of this section, the Secretary shall transmit to the 
     Congress, within one year after the date of the enactment of 
     this Act, an assessment of all renewable energy resources 
     available within the United States.
       (2) Resource assessment.--Such report shall include a 
     detailed inventory describing the available amount and 
     characteristics of solar, wind, biomass, geothermal, 
     hydroelectric, and other renewable energy sources, and an 
     estimate of the costs needed to develop each resource. The 
     report shall also include such other information as the 
     Secretary believes would be useful in siting renewable energy 
     generation, such as appropriate terrain, population and load 
     centers, nearby energy infrastructure, and location of energy 
     resources.
       (3) Availability.--The information and cost estimates in 
     this report shall be updated annually and made available to 
     the public, along with the data used to create the report.
       (4) Sunset.--This subsection shall expire at the end of 
     fiscal year 2004.
       (d) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Departmental Energy Management Program; or
       (2) Renewable Indian Energy Resources.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

     SEC. 2301. SHORT TITLE.

       This subtitle may be cited as ``Department of Energy 
     University Nuclear Science and Engineering Act''.

     SEC. 2302. FINDINGS.

       The Congress finds the following:
       (1) United States university nuclear science and 
     engineering programs are in a state of serious decline, with 
     nuclear engineering enrollment at a 35-year low. Since 1980, 
     the number of nuclear engineering university programs has 
     declined nearly 40 percent, and over two-thirds of the 
     faculty in these programs are 45 years of age or older. Also, 
     since 1980, the number of university research and training 
     reactors in the United States has declined by over 50 
     percent. Most of these reactors were built in the late 1950s 
     and 1960s with 30-year to 40-year operating licenses, and 
     many will require relicensing in the next several years.
       (2) A decline in a competent nuclear workforce, and the 
     lack of adequately trained nuclear scientists and engineers, 
     will affect the ability of the United States to solve future 
     nuclear waste storage issues, operate existing and design 
     future fission reactors in the United States, respond to 
     future nuclear events worldwide, help stem the proliferation 
     of nuclear weapons, and design and operate naval nuclear 
     reactors.
       (3) The Department of Energy's Office of Nuclear Energy, 
     Science and Technology, a principal Federal agency for 
     civilian research in nuclear science and engineering, is well 
     suited to help maintain tomorrow's human resource and 
     training investment in the nuclear sciences and engineering.

     SEC. 2303. DEPARTMENT OF ENERGY PROGRAM.

       (a) Establishment.--The Secretary, through the Office of 
     Nuclear Energy, Science and Technology, shall support a 
     program to maintain the Nation's human resource investment 
     and infrastructure in the nuclear sciences and engineering 
     consistent with the Department's statutory authorities 
     related to civilian nuclear research, development, and 
     demonstration and commercial application of energy 
     technology.
       (b) Duties of the Office of Nuclear Energy, Science and 
     Technology.--In carrying out the program under this subtitle, 
     the Director of the Office of Nuclear Energy, Science and 
     Technology shall--
       (1) develop a robust graduate and undergraduate fellowship 
     program to attract new and talented students;

[[Page H5070]]

       (2) assist universities in recruiting and retaining new 
     faculty in the nuclear sciences and engineering through a 
     Junior Faculty Research Initiation Grant Program;
       (3) maintain a robust investment in the fundamental nuclear 
     sciences and engineering through the Nuclear Engineering 
     Education Research Program;
       (4) encourage collaborative nuclear research among 
     industry, national laboratories, and universities through the 
     Nuclear Energy Research Initiative;
       (5) assist universities in maintaining reactor 
     infrastructure; and
       (6) support communication and outreach related to nuclear 
     science and engineering.
       (c) Maintaining University Research and Training Reactors 
     and Associated Infrastructure.--The Secretary, through the 
     Office of Nuclear Energy, Science and Technology, shall 
     provide for the following university research and training 
     reactor infrastructure maintenance and research activities:
       (1) Refueling of university research reactors with low 
     enriched fuels, upgrade of operational instrumentation, and 
     sharing of reactors among universities.
       (2) In collaboration with the United States nuclear 
     industry, assistance, where necessary, in relicensing and 
     upgrading university training reactors as part of a student 
     training program.
       (3) A university reactor research and training award 
     program that provides for reactor improvements as part of a 
     focused effort that emphasizes research, training, and 
     education.
       (d) University-DOE Laboratory Interactions.--The Secretary, 
     through the Office of Nuclear Energy, Science and Technology, 
     shall develop--
       (1) a sabbatical fellowship program for university faculty 
     to spend extended periods of time at Department of Energy 
     laboratories in the areas of nuclear science and technology; 
     and
       (2) a visiting scientist program in which laboratory staff 
     can spend time in academic nuclear science and engineering 
     departments.
     The Secretary may under subsection (b)(1) provide for 
     fellowships for students to spend time at Department of 
     Energy laboratories in the areas of nuclear science and 
     technology under the mentorship of laboratory staff.
       (e) Operations and Maintenance.--To the extent that the use 
     of a university research reactor is funded under this 
     subtitle, funds authorized under this subtitle may be used to 
     supplement operation of the research reactor during the 
     investigator's proposed effort. The host institution shall 
     provide at least 50 percent of the cost of the reactor's 
     operation.
       (f) Merit Review Required.--All grants, contracts, 
     cooperative agreements, or other financial assistance awards 
     under this subtitle shall be made only after independent 
     merit review.
       (g) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary shall prepare and 
     transmit to the appropriate congressional committees a 5-year 
     plan on how the programs authorized in this subtitle will be 
     implemented. The plan shall include a review of the projected 
     personnel needs in the fields of nuclear science and 
     engineering and of the scope of nuclear science and 
     engineering education programs at the Department and other 
     Federal agencies.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS.

       (a) Total Authorization.--The following sums are authorized 
     to be appropriated to the Secretary, to remain available 
     until expended, for the purposes of carrying out this 
     subtitle:
       (1) $30,200,000 for fiscal year 2002.
       (2) $41,000,000 for fiscal year 2003.
       (3) $47,900,000 for fiscal year 2004.
       (4) $55,600,000 for fiscal year 2005.
       (5) $64,100,000 for fiscal year 2006.
       (b) Graduate and Undergraduate Fellowships.--Of the funds 
     authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(b)(1):
       (1) $3,000,000 for fiscal year 2002.
       (2) $3,100,000 for fiscal year 2003.
       (3) $3,200,000 for fiscal year 2004.
       (4) $3,200,000 for fiscal year 2005.
       (5) $3,200,000 for fiscal year 2006.
       (c) Junior Faculty Research Initiation Grant Program.--Of 
     the funds authorized by subsection (a), the following sums 
     are authorized to be appropriated to carry out section 
     2303(b)(2):
       (1) $5,000,000 for fiscal year 2002.
       (2) $7,000,000 for fiscal year 2003.
       (3) $8,000,000 for fiscal year 2004.
       (4) $9,000,000 for fiscal year 2005.
       (5) $10,000,000 for fiscal year 2006.
       (d) Nuclear Engineering Education Research Program.--Of the 
     funds authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(b)(3):
       (1) $8,000,000 for fiscal year 2002.
       (2) $12,000,000 for fiscal year 2003.
       (3) $13,000,000 for fiscal year 2004.
       (4) $15,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (e) Communication and Outreach Related to Nuclear Science 
     and Engineering.--Of the funds authorized by subsection (a), 
     the following sums are authorized to be appropriated to carry 
     out section 2303(b)(5):
       (1) $200,000 for fiscal year 2002.
       (2) $200,000 for fiscal year 2003.
       (3) $300,000 for fiscal year 2004.
       (4) $300,000 for fiscal year 2005.
       (5) $300,000 for fiscal year 2006.
       (f) Refueling of University Research Reactors and 
     Instrumentation Upgrades.--Of the funds authorized by 
     subsection (a), the following sums are authorized to be 
     appropriated to carry out section 2303(c)(1):
       (1) $6,000,000 for fiscal year 2002.
       (2) $6,500,000 for fiscal year 2003.
       (3) $7,000,000 for fiscal year 2004.
       (4) $7,500,000 for fiscal year 2005.
       (5) $8,000,000 for fiscal year 2006.
       (g) Relicensing Assistance.--Of the funds authorized by 
     subsection (a), the following sums are authorized to be 
     appropriated to carry out section 2303(c)(2):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.
       (h) Reactor Research and Training Award Program.--Of the 
     funds authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(c)(3):
       (1) $6,000,000 for fiscal year 2002.
       (2) $10,000,000 for fiscal year 2003.
       (3) $14,000,000 for fiscal year 2004.
       (4) $18,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (i) University-DOE Laboratory Interactions.--Of the funds 
     authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 2303(d):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.

Subtitle B--Advanced Fuel Recycling Technology Research and Development 
                                Program

     SEC. 2321. PROGRAM.

       (a) In General.--The Secretary, through the Director of the 
     Office of Nuclear Energy, Science and Technology, shall 
     conduct an advanced fuel recycling technology research and 
     development program to further the availability of 
     proliferation-resistant fuel recycling technologies as an 
     alternative to aqueous reprocessing in support of evaluation 
     of alternative national strategies for spent nuclear fuel and 
     the Generation IV advanced reactor concepts, subject to 
     annual review by the Secretary's Nuclear Energy Research 
     Advisory Committee or other independent entity, as 
     appropriate.
       (b) Reports.--The Secretary shall report on the activities 
     of the advanced fuel recycling technology research and 
     development program, as part of the Department's annual 
     budget submission.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $10,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

    Subtitle C--Department of Energy Authorization of Appropriations

     SEC. 2341. NUCLEAR ENERGY RESEARCH INITIATIVE.

       (a) Program.--The Secretary, through the Office of Nuclear 
     Energy, Science and Technology, shall conduct a Nuclear 
     Energy Research Initiative for grants to be competitively 
     awarded and subject to peer review for research relating to 
     nuclear energy.
       (b) Objectives.--The program shall be directed toward 
     accomplishing the objectives of--
       (1) developing advanced concepts and scientific 
     breakthroughs in nuclear fission and reactor technology to 
     address and overcome the principal technical and scientific 
     obstacles to the expanded use of nuclear energy in the United 
     States;
       (2) advancing the state of nuclear technology to maintain a 
     competitive position in foreign markets and a future domestic 
     market;
       (3) promoting and maintaining a United States nuclear 
     science and engineering infrastructure to meet future 
     technical challenges;
       (4) providing an effective means to collaborate on a cost-
     shared basis with international agencies and research 
     organizations to address and influence nuclear technology 
     development worldwide; and
       (5) promoting United States leadership and partnerships in 
     bilateral and multilateral nuclear energy research.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $60,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

     SEC. 2342. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.

       (a) Program.--The Secretary, through the Office of Nuclear 
     Energy, Science and Technology, shall conduct a Nuclear 
     Energy Plant Optimization research and development program 
     jointly with industry and cost-shared by industry by at least 
     50 percent and subject to annual review by the Secretary's 
     Nuclear Energy Research Advisory Committee or other 
     independent entity, as appropriate.
       (b) Objectives.--The program shall be directed toward 
     accomplishing the objectives of--
       (1) managing long-term effects of component aging; and

[[Page H5071]]

       (2) improving the efficiency and productivity of existing 
     nuclear power stations.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $15,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal years 2003 and 
     2004.

     SEC. 2343. NUCLEAR ENERGY TECHNOLOGIES.

       (a) In General.--The Secretary, through the Office of 
     Nuclear Energy, Science and Technology, shall conduct a study 
     of Generation IV nuclear energy systems, including 
     development of a technology roadmap and performance of 
     research and development necessary to make an informed 
     technical decision regarding the most promising candidates 
     for commercial application.
       (b) Reactor Characteristics.--To the extent practicable, in 
     conducting the study under subsection (a), the Secretary 
     shall study nuclear energy systems that offer the highest 
     probability of achieving the goals for Generation IV nuclear 
     energy systems, including--
       (1) economics competitive with any other generators;
       (2) enhanced safety features, including passive safety 
     features;
       (3) substantially reduced production of high-level waste, 
     as compared with the quantity of waste produced by reactors 
     in operation on the date of enactment of this Act;
       (4) highly proliferation-resistant fuel and waste;
       (5) sustainable energy generation including optimized fuel 
     utilization; and
       (6) substantially improved thermal efficiency, as compared 
     with the thermal efficiency of reactors in operation on the 
     date of enactment of this Act.
       (c) Consultation.--In conducting the study under subsection 
     (a), the Secretary shall consult with appropriate 
     representatives of industry, institutions of higher 
     education, Federal agencies, and international, professional, 
     and technical organizations.
       (d) Report.--
       (1) In general.--Not later than December 31, 2002, the 
     Secretary shall transmit to the appropriate congressional 
     committees a report describing the activities of the 
     Secretary under this section, and plans for research and 
     development leading to a public/private cooperative 
     demonstration of one or more Generation IV nuclear energy 
     systems.
       (2) Contents.--The report shall contain--
       (A) an assessment of all available technologies;
       (B) a summary of actions needed for the most promising 
     candidates to be considered as viable commercial options 
     within the five to ten years after the date of the report, 
     with consideration of regulatory, economic, and technical 
     issues;
       (C) a recommendation of not more than three promising 
     Generation IV nuclear energy system concepts for further 
     development;
       (D) an evaluation of opportunities for public/private 
     partnerships;
       (E) a recommendation for structure of a public/private 
     partnership to share in development and construction costs;
       (F) a plan leading to the selection and conceptual design, 
     by September 30, 2004, of at least one Generation IV nuclear 
     energy system concept recommended under subparagraph (C) for 
     demonstration through a public/private partnership;
       (G) an evaluation of opportunities for siting demonstration 
     facilities on Department of Energy land; and
       (H) a recommendation for appropriate involvement of other 
     Federal agencies.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     and to carry out the recommendations in the report 
     transmitted under subsection (d)--
       (1) $20,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

     SEC. 2344. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary to carry out activities 
     authorized under this title for nuclear energy operation and 
     maintenance, including amounts authorized under sections 
     2304(a), 2321(c), 2341(c), 2342(c), and 2343(e), and 
     including Advanced Radioisotope Power Systems, Test Reactor 
     Landlord, and Program Direction, $191,200,000 for fiscal year 
     2002, $199,000,000 for fiscal year 2003, and $207,000,000 for 
     fiscal year 2004, to remain available until expended.
       (b) Construction.--There are authorized to be appropriated 
     to the Secretary--
       (1) $950,000 for fiscal year 2002, $2,200,000 for fiscal 
     year 2003, $1,246,000 for fiscal year 2004, and $1,699,000 
     for fiscal year 2005 for completion of construction of 
     Project 99-E-200, Test Reactor Area Electric Utility Upgrade, 
     Idaho National Engineering and Environmental Laboratory; and
       (2) $500,000 for fiscal year 2002, $500,000 for fiscal year 
     2003, $500,000 for fiscal year 2004, and $500,000 for fiscal 
     year 2005, for completion of construction of Project 95-E-
     201, Test Reactor Area Fire and Life Safety Improvements, 
     Idaho National Engineering and Environmental Laboratory.
       (c) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Nuclear Energy Isotope Support and Production;
       (2) Argonne National Laboratory-West Operations;
       (3) Fast Flux Test Facility; or
       (4) Nuclear Facilities Management.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

     SEC. 2401. COAL AND RELATED TECHNOLOGIES PROGRAMS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $172,000,000 for fiscal 
     year 2002, $179,000,000 for fiscal year 2003, and 
     $186,000,000 for fiscal year 2004, to remain available until 
     expended, for other coal and related technologies research 
     and development programs, which shall include--
       (1) Innovations for Existing Plants;
       (2) Integrated Gasification Combined Cycle;
       (3) advanced combustion systems;
       (4) Turbines;
       (5) Sequestration Research and Development;
       (6) innovative technologies for demonstration;
       (7) Transportation Fuels and Chemicals;
       (8) Solid Fuels and Feedstocks;
       (9) Advanced Fuels Research; and
       (10) Advanced Research.
       (b) Limit on use of Funds.--Notwithstanding subsection (a), 
     no funds may be used to carry out the activities authorized 
     by this section after September 30, 2002, unless the 
     Secretary has transmitted to the Congress the report required 
     by this subsection and 1 month has elapsed since that 
     transmission. The report shall include a plan containing--
       (1) a detailed description of how proposals will be 
     solicited and evaluated, including a list of all activities 
     expected to be undertaken;
       (2) a detailed list of technical milestones for each coal 
     and related technology that will be pursued;
       (3) a description of how the programs authorized in this 
     subsection will be carried out so as to complement and not 
     duplicate activities authorized under division E.

                        Subtitle B--Oil and Gas

     SEC. 2421. PETROLEUM-OIL TECHNOLOGY.

       The Secretary shall conduct a program of research, 
     development, demonstration, and commercial application on 
     petroleum-oil technology. The program shall address--
       (1) Exploration and Production Supporting Research;
       (2) Oil Technology Reservoir Management/Extension; and
       (3) Effective Environmental Protection.

     SEC. 2422. GAS.

       The Secretary shall conduct a program of research, 
     development, demonstration, and commercial application on 
     natural gas technologies. The program shall address--
       (1) Exploration and Production;
       (2) Infrastructure; and
       (3) Effective Environmental Protection.

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

     SEC. 2441. SHORT TITLE.

       This subtitle may be cited as the ``Natural Gas and Other 
     Petroleum Research, Development, and Demonstration Act of 
     2001''.

     SEC. 2442. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``deepwater'' means water depths greater than 
     200 meters but less than 1,500 meters;
       (2) the term ``Fund'' means the Ultra-Deepwater and 
     Unconventional Gas Research Fund established under section 
     2450;
       (3) the term ``institution of higher education'' has the 
     meaning given that term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001);
       (4) the term ``Research Organization'' means the Research 
     Organization created pursuant to section 2446(a);
       (5) the term ``ultra-deepwater'' means water depths greater 
     than 1,500 meters; and
       (6) the term ``unconventional'' means located in heretofore 
     inaccessible or uneconomic formations on land.

     SEC. 2443. ULTRA-DEEPWATER PROGRAM.

       The Secretary shall establish a program of research, 
     development, and demonstration of ultra-deepwater natural gas 
     and other petroleum exploration and production technologies, 
     in areas currently available for Outer Continental Shelf 
     leasing. The program shall be carried out by the Research 
     Organization as provided in this subtitle.

     SEC. 2444. NATIONAL ENERGY TECHNOLOGY LABORATORY.

       The National Energy Technology Laboratory and the United 
     States Geological Survey, when appropriate, shall carry out 
     programs of long-term research into new natural gas and other 
     petroleum exploration and production technologies and 
     environmental mitigation technologies for production from 
     unconventional and ultra-deepwater resources, including 
     methane hydrates. Such Laboratory shall also conduct a 
     program of research, development, and demonstration of new 
     technologies for the reduction of greenhouse gas emissions 
     from unconventional and ultra-deepwater natural gas or other 
     petroleum exploration and production activities, including 
     sub-sea floor carbon sequestration technologies.

     SEC. 2445. ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary shall, within 3 months 
     after the date of the enactment of this Act, establish an 
     Advisory Committee consisting of 7 members, each having 
     extensive operational knowledge of and experience in the 
     natural gas and other petroleum exploration and production 
     industry who are not Federal Government employees or 
     contractors. A minimum of 4 members

[[Page H5072]]

     shall have extensive knowledge of ultra-deepwater natural gas 
     or other petroleum exploration and production technologies, a 
     minimum of 2 members shall have extensive knowledge of 
     unconventional natural gas or other petroleum exploration and 
     production technologies, and at least 1 member shall have 
     extensive knowledge of greenhouse gas emission reduction 
     technologies, including carbon sequestration.
       (b) Function.--The Advisory Committee shall advise the 
     Secretary on the selection of an organization to create the 
     Research Organization and on the implementation of this 
     subtitle.
       (c) Compensation.--Members of the Advisory Committee shall 
     serve without compensation but shall receive travel expenses, 
     including per diem in lieu of subsistence, in accordance with 
     applicable provisions under subchapter I of chapter 57 of 
     title 5, United States Code.
       (d) Administrative Costs.--The costs of activities carried 
     out by the Secretary and the Advisory Committee under this 
     subtitle shall be paid or reimbursed from the Fund.
       (e) Duration of Advisory Committee.--Section 14 of the 
     Federal Advisory Committee Act shall not apply to the 
     Advisory Committee.

     SEC. 2446. RESEARCH ORGANIZATION.

       (a) Selection of Research Organization.--The Secretary, 
     within 6 months after the date of the enactment of this Act, 
     shall solicit proposals from eligible entities for the 
     creation of the Research Organization, and within 3 months 
     after such solicitation, shall select an entity to create the 
     Research Organization.
       (b) Eligible Entities.--Entities eligible to create the 
     Research Organization shall--
       (1) have been in existence as of the date of the enactment 
     of this Act;
       (2) be entities exempt from tax under section 501(c)(3) of 
     the Internal Revenue Code of 1986; and
       (3) be experienced in planning and managing programs in 
     natural gas or other petroleum exploration and production 
     research, development, and demonstration.
       (c) Proposals.--A proposal from an entity seeking to create 
     the Research Organization shall include a detailed 
     description of the proposed membership and structure of the 
     Research Organization.
       (d) Functions.--The Research Organization shall--
       (1) award grants on a competitive basis to qualified--
       (A) research institutions;
       (B) institutions of higher education;
       (C) companies; and
       (D) consortia formed among institutions and companies 
     described in subparagraphs (A) through (C) for the purpose of 
     conducting research, development, and demonstration of 
     unconventional and ultra-deepwater natural gas or other 
     petroleum exploration and production technologies; and
       (2) review activities under those grants to ensure that 
     they comply with the requirements of this subtitle and serve 
     the purposes for which the grant was made.

     SEC. 2447. GRANTS.

       (a) Types of Grants.--
       (1) Unconventional.--The Research Organization shall award 
     grants for research, development, and demonstration of 
     technologies to maximize the value of the Government's 
     natural gas and other petroleum resources in unconventional 
     reservoirs, and to develop technologies to increase the 
     supply of natural gas and other petroleum resources by 
     lowering the cost and improving the efficiency of exploration 
     and production of unconventional reservoirs, while improving 
     safety and minimizing environmental impacts.
       (2) Ultra-deepwater.--The Research Organization shall award 
     grants for research, development, and demonstration of 
     natural gas or other petroleum exploration and production 
     technologies to--
       (A) maximize the value of the Federal Government's natural 
     gas and other petroleum resources in the ultra-deepwater 
     areas;
       (B) increase the supply of natural gas and other petroleum 
     resources by lowering the cost and improving the efficiency 
     of exploration and production of ultra-deepwater reservoirs; 
     and
       (C) improve safety and minimize the environmental impacts 
     of ultra-deepwater developments.
       (3) Ultra-deepwater architecture.--The Research 
     Organization shall award a grant to one or more consortia 
     described in section 2446(d)(1)(D) for the purpose of 
     developing and demonstrating the next generation architecture 
     for ultra-deepwater production of natural gas and other 
     petroleum in furtherance of the purposes stated in paragraph 
     (2)(A) through (C).
       (b) Conditions for Grants.--Grants provided under this 
     section shall contain the following conditions:
       (1) If the grant recipient consists of more than one 
     entity, the recipient shall provide a signed contract agreed 
     to by all participating members clearly defining all rights 
     to intellectual property for existing technology and for 
     future inventions conceived and developed using funds 
     provided under the grant, in a manner that is consistent with 
     applicable laws.
       (2) There shall be a repayment schedule for Federal dollars 
     provided for demonstration projects under the grant in the 
     event of a successful commercialization of the demonstrated 
     technology. Such repayment schedule shall provide that the 
     payments are made to the Secretary with the express intent 
     that these payments not impede the adoption of the 
     demonstrated technology in the marketplace. In the event that 
     such impedance occurs due to market forces or other factors, 
     the Research Organization shall renegotiate the grant 
     agreement so that the acceptance of the technology in the 
     marketplace is enabled.
       (3) Applications for grants for demonstration projects 
     shall clearly state the intended commercial applications of 
     the technology demonstrated.
       (4) The total amount of funds made available under a grant 
     provided under subsection (a)(3) shall not exceed 50 percent 
     of the total cost of the activities for which the grant is 
     provided.
       (5) The total amount of funds made available under a grant 
     provided under subsection (a)(1) or (2) shall not exceed 50 
     percent of the total cost of the activities covered by the 
     grant, except that the Research Organization may elect to 
     provide grants covering a higher percentage, not to exceed 90 
     percent, of total project costs in the case of grants made 
     solely to independent producers.
       (6) An appropriate amount of funds provided under a grant 
     shall be used for the broad dissemination of technologies 
     developed under the grant to interested institutions of 
     higher education, industry, and appropriate Federal and State 
     technology entities to ensure the greatest possible benefits 
     for the public and use of government resources.
       (7) Demonstrations of ultra-deepwater technologies for 
     which funds are provided under a grant may be conducted in 
     ultra-deepwater or deepwater locations.
       (c) Allocation of Funds.--Funds available for grants under 
     this subtitle shall be allocated as follows:
       (1) 15 percent shall be for grants under subsection (a)(1).
       (2) 15 percent shall be for grants under subsection (a)(2).
       (3) 60 percent shall be for grants under subsection (a)(3).
       (4) 10 percent shall be for carrying out section 2444.

     SEC. 2448. PLAN AND FUNDING.

       (a) Transmittal to Secretary.--The Research Organization 
     shall transmit to the Secretary an annual plan proposing 
     projects and funding of activities under each paragraph of 
     section 2447(a).
       (b) Review.--The Secretary shall have 1 month to review the 
     annual plan, and shall approve the plan, if it is consistent 
     with this subtitle. If the Secretary approves the plan, the 
     Secretary shall provide funding as proposed in the plan.
       (c) Disapproval.--If the Secretary does not approve the 
     plan, the Secretary shall notify the Research Organization of 
     the reasons for disapproval and shall withhold funding until 
     a new plan is submitted which the Secretary approves. Within 
     1 month after notifying the Research Organization of a 
     disapproval, the Secretary shall notify the appropriate 
     congressional committees of the disapproval.

     SEC. 2449. AUDIT.

       The Secretary shall retain an independent, commercial 
     auditor to determine the extent to which the funds authorized 
     by this subtitle have been expended in a manner consistent 
     with the purposes of this subtitle. The auditor shall 
     transmit a report annually to the Secretary, who shall 
     transmit the report to the appropriate congressional 
     committees, along with a plan to remedy any deficiencies 
     cited in the report.

     SEC. 2450. FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Ultra-Deepwater 
     and Unconventional Gas Research Fund'' which shall be 
     available for obligation to the extent provided in advance in 
     appropriations Acts for allocation under section 2447(c).
       (b) Funding Sources.--
       (1) Loans from treasury.--There are authorized to be 
     appropriated to the Secretary $900,000,000 for the period 
     encompassing fiscal years 2002 through 2009. Such amounts 
     shall be deposited by the Secretary in the Fund, and shall be 
     considered loans from the Treasury. Income received by the 
     United States in connection with any ultra-deepwater oil and 
     gas leases shall be deposited in the Treasury and considered 
     as repayment for the loans under this paragraph.
       (2) Additional appropriations.--There are authorized to be 
     appropriated to the Secretary such sums as may be necessary 
     for the fiscal years 2002 through 2009, to be deposited in 
     the Fund.
       (3) Oil and gas lease income.--To the extent provided in 
     advance in appropriations Acts, not more than 7.5 percent of 
     the income of the United States from Federal oil and gas 
     leases may be deposited in the Fund for fiscal years 2002 
     through 2009.

     SEC. 2451. SUNSET.

       No funds are authorized to be appropriated for carrying out 
     this subtitle after fiscal year 2009. The Research 
     Organization shall be terminated when it has expended all 
     funds made available pursuant to this subtitle.

                         Subtitle D--Fuel Cells

     SEC. 2461. FUEL CELLS.

       (a) In General.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application on fuel cells. The program shall address--
       (1) Advanced Research;
       (2) Systems Development;
       (3) Vision 21-Hybrids; and
       (4) Innovative Concepts.

[[Page H5073]]

       (b) Manufacturing Production and Processes.--In addition to 
     the program under subsection (a), the Secretary, in 
     consultation other Federal agencies, as appropriate, shall 
     establish a program for the demonstration of fuel cell 
     technologies, including fuel cell proton exchange membrane 
     technology, for commercial, residential, and transportation 
     applications. The program shall specifically focus on 
     promoting the application of and improved manufacturing 
     production and processes for fuel cell technologies.
       (c) Authorization of Appropriations.--Within the amounts 
     authorized to be appropriated under section 2481(a), there 
     are authorized to be appropriated to the Secretary for the 
     purpose of carrying out subsection (b), $28,000,000 for each 
     of fiscal years 2002 through 2004.

    Subtitle E--Department of Energy Authorization of Appropriations

     SEC. 2481. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary for operation and maintenance 
     for subtitle B and subtitle D, and for Fossil Energy Research 
     and Development Headquarters Program Direction, Field Program 
     Direction, Plant and Capital Equipment, Cooperative Research 
     and Development, Import/Export Authorization, and Advanced 
     Metallurgical Processes $282,000,000 for fiscal year 2002, 
     $293,000,000 for fiscal year 2003, and $305,000,000 for 
     fiscal year 2004, to remain available until expended.
       (b) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Gas Hydrates.
       (2) Fossil Energy Environmental Restoration; or
       (3) research, development, demonstration, and commercial 
     application on coal and related technologies, including 
     activities under subtitle A.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

     SEC. 2501. SHORT TITLE.

       This subtitle may be cited as the ``Fusion Energy Sciences 
     Act of 2001''.

     SEC. 2502. FINDINGS.

       The Congress finds that--
       (1) economic prosperity is closely linked to an affordable 
     and ample energy supply;
       (2) environmental quality is closely linked to energy 
     production and use;
       (3) population, worldwide economic development, energy 
     consumption, and stress on the environment are all expected 
     to increase substantially in the coming decades;
       (4) the few energy options with the potential to meet 
     economic and environmental needs for the long-term future 
     should be pursued as part of a balanced national energy plan;
       (5) fusion energy is an attractive long-term energy source 
     because of the virtually inexhaustible supply of fuel, and 
     the promise of minimal adverse environmental impact and 
     inherent safety;
       (6) the National Research Council, the President's 
     Committee of Advisers on Science and Technology, and the 
     Secretary of Energy Advisory Board have each recently 
     reviewed the Fusion Energy Sciences Program and each strongly 
     supports the fundamental science and creative innovation of 
     the program, and has confirmed that progress toward the goal 
     of producing practical fusion energy has been excellent, 
     although much scientific and engineering work remains to be 
     done;
       (7) each of these reviews stressed the need for a magnetic 
     fusion burning plasma experiment to address key scientific 
     issues and as a necessary step in the development of fusion 
     energy;
       (8) the National Research Council has also called for a 
     broadening of the Fusion Energy Sciences Program research 
     base as a means to more fully integrate the fusion science 
     community into the broader scientific community; and
       (9) the Fusion Energy Sciences Program budget is inadequate 
     to support the necessary science and innovation for the 
     present generation of experiments, and cannot accommodate the 
     cost of a burning plasma experiment constructed by the United 
     States, or even the cost of key participation by the United 
     States in an international effort.

     SEC. 2503. PLAN FOR FUSION EXPERIMENT.

       (a) Plan for United States Fusion Experiment.--The 
     Secretary, on the basis of full consultation with the Fusion 
     Energy Sciences Advisory Committee and the Secretary of 
     Energy Advisory Board, as appropriate, shall develop a plan 
     for United States construction of a magnetic fusion burning 
     plasma experiment for the purpose of accelerating scientific 
     understanding of fusion plasmas. The Secretary shall request 
     a review of the plan by the National Academy of Sciences, and 
     shall transmit the plan and the review to the Congress by 
     July 1, 2004.
       (b) Requirements of Plan.--The plan described in subsection 
     (a) shall--
       (1) address key burning plasma physics issues; and
       (2) include specific information on the scientific 
     capabilities of the proposed experiment, the relevance of 
     these capabilities to the goal of practical fusion energy, 
     and the overall design of the experiment including its 
     estimated cost and potential construction sites.
       (c) United States Participation in an International 
     Experiment.--In addition to the plan described in subsection 
     (a), the Secretary, on the basis of full consultation with 
     the Fusion Energy Sciences Advisory Committee and the 
     Secretary of Energy Advisory Board, as appropriate, may also 
     develop a plan for United States participation in an 
     international burning plasma experiment for the same purpose, 
     whose construction is found by the Secretary to be highly 
     likely and where United States participation is cost 
     effective relative to the cost and scientific benefits of a 
     domestic experiment described in subsection (a). If the 
     Secretary elects to develop a plan under this subsection, he 
     shall include the information described in subsection (b), 
     and an estimate of the cost of United States participation in 
     such an international experiment. The Secretary shall request 
     a review by the National Academies of Sciences and 
     Engineering of a plan developed under this subsection, and 
     shall transmit the plan and the review to the Congress not 
     later than July 1, 2004.
       (d) Authorization of Research and Development.--The 
     Secretary, through the Fusion Energy Sciences Program, may 
     conduct any research and development necessary to fully 
     develop the plans described in this section.

     SEC. 2504. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.

       Not later than 6 months after the date of the enactment of 
     this Act, the Secretary, in full consultation with FESAC, 
     shall develop and transmit to the Congress a plan for the 
     purpose of ensuring a strong scientific base for the Fusion 
     Energy Sciences Program and to enable the experiments 
     described in section 2503. Such plan shall include as its 
     objectives--
       (1) to ensure that existing fusion research facilities and 
     equipment are more fully utilized with appropriate 
     measurements and control tools;
       (2) to ensure a strengthened fusion science theory and 
     computational base;
       (3) to ensure that the selection of and funding for new 
     magnetic and inertial fusion research facilities is based on 
     scientific innovation and cost effectiveness;
       (4) to improve the communication of scientific results and 
     methods between the fusion science community and the wider 
     scientific community;
       (5) to ensure that adequate support is provided to optimize 
     the design of the magnetic fusion burning plasma experiments 
     referred to in section 2503;
       (6) to ensure that inertial confinement fusion facilities 
     are utilized to the extent practicable for the purpose of 
     inertial fusion energy research and development;
       (7) to develop a roadmap for a fusion-based energy source 
     that shows the important scientific questions, the evolution 
     of confinement configurations, the relation between these two 
     features, and their relation to the fusion energy goal;
       (8) to establish several new centers of excellence, 
     selected through a competitive peer-review process and 
     devoted to exploring the frontiers of fusion science;
       (9) to ensure that the National Science Foundation, and 
     other agencies, as appropriate, play a role in extending the 
     reach of fusion science and in sponsoring general plasma 
     science; and
       (10) to ensure that there be continuing broad assessments 
     of the outlook for fusion energy and periodic external 
     reviews of fusion energy sciences.

     SEC. 2505. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     for the development and review, but not for implementation, 
     of the plans described in this subtitle and for activities of 
     the Fusion Energy Sciences Program $320,000,000 for fiscal 
     year 2002 and $335,000,000 for fiscal year 2003, of which up 
     to $15,000,000 for each of fiscal year 2002 and fiscal year 
     2003 may be used to establish several new centers of 
     excellence, selected through a competitive peer-review 
     process and devoted to exploring the frontiers of fusion 
     science.

                 Subtitle B--Spallation Neutron Source

     SEC. 2521. DEFINITION.

       For the purposes of this subtitle, the term ``Spallation 
     Neutron Source'' means Department Project 99-E-334, Oak Ridge 
     National Laboratory, Oak Ridge, Tennessee.

     SEC. 2522. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Construction Funding.--There are 
     authorized to be appropriated to the Secretary for 
     construction of the Spallation Neutron Source--
       (1) $276,300,000 for fiscal year 2002;
       (2) $210,571,000 for fiscal year 2003;
       (3) $124,600,000 for fiscal year 2004;
       (4) $79,800,000 for fiscal year 2005; and
       (5) $41,100,000 for fiscal year 2006 for completion of 
     construction.
       (b) Authorization of Other Project Funding.--There are 
     authorized to be appropriated to the Secretary for other 
     project costs (including research and development necessary 
     to complete the project, preoperations costs, and capital 
     equipment not related to construction) of the Spallation 
     Neutron Source $15,353,000 for fiscal year 2002 and 
     $103,279,000 for the period encompassing fiscal years 2003 
     through 2006, to remain available until expended through 
     September 30, 2006.

     SEC. 2523. REPORT.

       The Secretary shall report on the Spallation Neutron Source 
     as part of the Department's annual budget submission, 
     including a description of the achievement of milestones, a 
     comparison of actual costs to estimated costs, and any 
     changes in estimated project costs or schedule.

     SEC. 2524. LIMITATIONS.

       The total amount obligated by the Department, including 
     prior year appropriations,

[[Page H5074]]

     for the Spallation Neutron Source may not exceed--
       (1) $1,192,700,000 for costs of construction;
       (2) $219,000,000 for other project costs; and
       (3) $1,411,700,000 for total project cost.

      Subtitle C--Facilities, Infrastructure, and User Facilities

     SEC. 2541. DEFINITION.

       For purposes of this subtitle--
       (1) the term ``nonmilitary energy laboratory'' means--
       (A) Ames Laboratory;
       (B) Argonne National Laboratory;
       (C) Brookhaven National Laboratory;
       (D) Fermi National Accelerator Laboratory;
       (E) Lawrence Berkeley National Laboratory;
       (F) Oak Ridge National Laboratory;
       (G) Pacific Northwest National Laboratory;
       (H) Princeton Plasma Physics Laboratory;
       (I) Stanford Linear Accelerator Center;
       (J) Thomas Jefferson National Accelerator Facility; or
       (K) any other facility of the Department that the 
     Secretary, in consultation with the Director, Office of 
     Science and the appropriate congressional committees, 
     determines to be consistent with the mission of the Office of 
     Science; and
       (2) the term ``user facility'' means--
       (A) an Office of Science facility at a nonmilitary energy 
     laboratory that provides special scientific and research 
     capabilities, including technical expertise and support as 
     appropriate, to serve the research needs of the Nation's 
     universities, industry, private laboratories, Federal 
     laboratories, and others, including research institutions or 
     individuals from other nations where reciprocal 
     accommodations are provided to United States research 
     institutions and individuals or where the Secretary considers 
     such accommodation to be in the national interest; and
       (B) any other Office of Science funded facility designated 
     by the Secretary as a user facility.

     SEC. 2542. FACILITY AND INFRASTRUCTURE SUPPORT FOR 
                   NONMILITARY ENERGY LABORATORIES.

       (a) Facility Policy.--The Secretary shall develop and 
     implement a least-cost nonmilitary energy laboratory facility 
     and infrastructure strategy for--
       (1) maintaining existing facilities and infrastructure, as 
     needed;
       (2) closing unneeded facilities;
       (3) making facility modifications; and
       (4) building new facilities.
       (b) Plan.--The Secretary shall prepare a comprehensive 10-
     year plan for conducting future facility maintenance, making 
     repairs, modifications, and new additions, and constructing 
     new facilities at each nonmilitary energy laboratory. Such 
     plan shall provide for facilities work in accordance with the 
     following priorities:
       (1) Providing for the safety and health of employees, 
     visitors, and the general public with regard to correcting 
     existing structural, mechanical, electrical, and 
     environmental deficiencies.
       (2) Providing for the repair and rehabilitation of existing 
     facilities to keep them in use and prevent deterioration, if 
     feasible.
       (3) Providing engineering design and construction services 
     for those facilities that require modification or additions 
     in order to meet the needs of new or expanded programs.
       (c) Report.--
       (1) Transmittal.--Within 1 year after the date of the 
     enactment of this Act, the Secretary shall prepare and 
     transmit to the appropriate congressional committees a report 
     containing the plan prepared under subsection (b).
       (2) Contents.--For each nonmilitary energy laboratory, such 
     report shall contain--
       (A) the current priority list of proposed facilities and 
     infrastructure projects, including cost and schedule 
     requirements;
       (B) a current ten-year plan that demonstrates the 
     reconfiguration of its facilities and infrastructure to meet 
     its missions and to address its long-term operational costs 
     and return on investment;
       (C) the total current budget for all facilities and 
     infrastructure funding; and
       (D) the current status of each facilities and 
     infrastructure project compared to the original baseline 
     cost, schedule, and scope.
       (3) Additional elements.--The report shall also--
       (A) include a plan for new facilities and facility 
     modifications at each nonmilitary energy laboratory that will 
     be required to meet the Department's changing missions of the 
     twenty-first century, including schedules and estimates for 
     implementation, and including a section outlining long-term 
     funding requirements consistent with anticipated budgets and 
     annual authorization of appropriations;
       (B) address the coordination of modernization and 
     consolidation of facilities among the nonmilitary energy 
     laboratories in order to meet changing mission requirements; 
     and
       (C) provide for annual reports to the appropriate 
     congressional committees on accomplishments, conformance to 
     schedules, commitments, and expenditures.

     SEC. 2543. USER FACILITIES.

       (a) Notice Requirement.--When the Department makes a user 
     facility available to universities and other potential users, 
     or seeks input from universities and other potential users 
     regarding significant characteristics or equipment in a user 
     facility or a proposed user facility, the Department shall 
     ensure broad public notice of such availability or such need 
     for input to universities and other potential users.
       (b) Competition Requirement.--When the Department considers 
     the participation of a university or other potential user in 
     the establishment or operation of a user facility, the 
     Department shall employ full and open competition in 
     selecting such a participant.
       (c) Prohibition.--The Department may not redesignate a user 
     facility, as defined by section 2541(b) as something other 
     than a user facility for avoid the requirements of 
     subsections (a) and (b).

            Subtitle D--Advisory Panel on Office of Science

     SEC. 2561. ESTABLISHMENT.

       The Director of the Office of Science and Technology 
     Policy, in consultation with the Secretary, shall establish 
     an Advisory Panel on the Office of Science comprised of 
     knowledgeable individuals to--
       (1) address concerns about the current status and the 
     future of scientific research supported by the Office;
       (2) examine alternatives to the current organizational 
     structure of the Office within the Department, taking into 
     consideration existing structures for the support of 
     scientific research in other Federal agencies and the private 
     sector; and
       (3) suggest actions to strengthen the scientific research 
     supported by the Office that might be taken jointly by the 
     Department and Congress.

     SEC. 2562. REPORT.

       Within 6 months after the date of the enactment of this 
     Act, the Advisory Panel shall transmit its findings and 
     recommendations in a report to the Director of the Office of 
     Science and Technology Policy and the Secretary. The Director 
     and the Secretary shall jointly--
       (1) consider each of the Panel's findings and 
     recommendations, and comment on each as they consider 
     appropriate; and
       (2) transmit the Panel's report and the comments of the 
     Director and the Secretary on the report to the appropriate 
     congressional committees within 9 months after the date of 
     the enactment of this Act.

    Subtitle E--Department of Energy Authorization of Appropriations

     SEC. 2581. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and maintenance.--Including the amounts 
     authorized to be appropriated for fiscal year 2002 under 
     section 2505 for Fusion Energy Sciences and under section 
     2522(b) for the Spallation Neutron Source, there are 
     authorized to be appropriated to the Secretary for the Office 
     of Science (also including subtitle C, High Energy Physics, 
     Nuclear Physics, Biological and Environmental Research, Basic 
     Energy Sciences (except for the Spallation Neutron Source), 
     Advanced Scientific Computing Research, Energy Research 
     Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Facilities and Infrastructure, Safeguards and 
     Security, and Program Direction) operation and maintenance 
     $3,299,558,000 for fiscal year 2002, to remain available 
     until expended.
       (b) Research Regarding Precious Metal Catalysis.--Within 
     the amounts authorized to be appropriated to the Secretary 
     under subsection (a), $5,000,000 for fiscal year 2002 may be 
     used to carry out research in the use of precious metals 
     (excluding platinum, palladium, and rhodium) in catalysis, 
     either directly though national laboratories, or through the 
     award of grants, cooperative agreements, or contracts with 
     public or nonprofit entities.
       (c) Construction.--In addition to the amounts authorized to 
     be appropriated under section 2522(a) for construction of the 
     Spallation Neutron Source, there are authorized to be 
     appropriated to the Secretary for Science--
       (1) $11,400,000 for fiscal year 2002 for completion of 
     construction of Project 98-G-304, Neutrinos at the Main 
     Injector, Fermi National Accelerator Laboratory;
       (2) $11,405,000 for fiscal year 2002 for completion of 
     construction of Project 01-E-300, Laboratory for Comparative 
     and Functional Genomics, Oak Ridge National Laboratory;
       (3) $4,000,000 for fiscal year 2002, $8,000,000 for fiscal 
     year 2003, and $2,000,000 for fiscal year 2004 for completion 
     of construction of Project 02-SC-002, Project Engineering 
     Design (PED), Various Locations;
       (4) $3,183,000 for fiscal year 2002 for completion of 
     construction of Project 02-SC-002, Multiprogram Energy 
     Laboratories Infrastructure Project Engineering Design (PED), 
     Various Locations; and
       (5) $18,633,000 for fiscal year 2002 and $13,029,000 for 
     fiscal year 2003 for completion of construction of Project 
     MEL-001, Multiprogram Energy Laboratories, Infrastructure, 
     Various Locations.
       (d) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (c) may be used for 
     construction at any national security laboratory as defined 
     in section 3281(1) of the National Defense Authorization Act 
     for Fiscal Year 2000 (50 U.S.C. 2471(1)) or at any nuclear 
     weapons production facility as defined in section 3281(2) of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (50 U.S.C. 2471(2)).

[[Page H5075]]

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

     SEC. 2601. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
                   COMMERCIAL APPLICATION OF ENERGY TECHNOLOGY 
                   PROGRAMS, PROJECTS, AND ACTIVITIES.

       (a) Authorized Activities.--Except as otherwise provided in 
     this division, research, development, demonstration, and 
     commercial application programs, projects, and activities for 
     which appropriations are authorized under this division may 
     be carried out under the procedures of the Federal Nonnuclear 
     Energy Research and Development Act of 1974 (42 U.S.C. 5901 
     et seq.), the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
     seq.), or any other Act under which the Secretary is 
     authorized to carry out such programs, projects, and 
     activities, but only to the extent the Secretary is 
     authorized to carry out such activities under each such Act.
       (b) Authorized Agreements.--Except as otherwise provided in 
     this division, in carrying out research, development, 
     demonstration, and commercial application programs, projects, 
     and activities for which appropriations are authorized under 
     this division, the Secretary may use, to the extent 
     authorized under applicable provisions of law, contracts, 
     cooperative agreements, cooperative research and development 
     agreements under the Stevenson-Wydler Technology Innovation 
     Act of 1980 (15 U.S.C. 3701 et seq.), grants, joint ventures, 
     and any other form of agreement available to the Secretary.
       (c) Definition.--For purposes of this section, the term 
     ``joint venture'' has the meaning given that term under 
     section 2 of the National Cooperative Research and Production 
     Act of 1993 (15 U.S.C. 4301), except that such term may apply 
     under this section to research, development, demonstration, 
     and commercial application of energy technology joint 
     ventures.
       (d) Protection of Information.--Section 12(c)(7) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(c)(7)), relating to the protection of information, 
     shall apply to research, development, demonstration, and 
     commercial application of energy technology programs, 
     projects, and activities for which appropriations are 
     authorized under this division.
       (e) Inventions.--An invention conceived and developed by 
     any person using funds provided through a grant under this 
     division shall be considered a subject invention for the 
     purposes of chapter 18 of title 35, United States Code 
     (commonly referred to as the Bayh-Dole Act).
       (f) Outreach.--The Secretary shall ensure that each program 
     authorized by this division includes an outreach component to 
     provide information, as appropriate, to manufacturers, 
     consumers, engineers, architects, builders, energy service 
     companies, universities, facility planners and managers, 
     State and local governments, and other entities.
       (g) Guidelines and Procedures.--The Secretary shall provide 
     guidelines and procedures for the transition, where 
     appropriate, of energy technologies from research through 
     development and demonstration to commercial application of 
     energy technology. Nothing in this section shall preclude the 
     Secretary from--
       (1) entering into a contract, cooperative agreement, 
     cooperative research and development agreement under the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3701 et seq.), grant, joint venture, or any other form of 
     agreement available to the Secretary under this section that 
     relates to research, development, demonstration, and 
     commercial application of energy technology; or
       (2) extending a contract, cooperative agreement, 
     cooperative research and development agreement under the 
     Stevenson-Wydler Technology Innovation Act of 1980, grant, 
     joint venture, or any other form of agreement available to 
     the Secretary that relates to research, development, and 
     demonstration to cover commercial application of energy 
     technology.
       (h) Application of Section.--This section shall not apply 
     to any contract, cooperative agreement, cooperative research 
     and development agreement under the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.), 
     grant, joint venture, or any other form of agreement 
     available to the Secretary that is in effect as of the date 
     of enactment of this Act.

     SEC. 2602. LIMITS ON USE OF FUNDS.

       (a) Management and Operating Contracts.--
       (1) Competitive procedure requirement.--None of the funds 
     authorized to be appropriated to the Secretary by this 
     division may be used to award a management and operating 
     contract for a federally owned or operated nonmilitary energy 
     laboratory of the Department unless such contract is awarded 
     using competitive procedures or the Secretary grants, on a 
     case-by-case basis, a waiver to allow for such a deviation. 
     The Secretary may not delegate the authority to grant such a 
     waiver.
       (2) Congressional notice.--At least 2 months before a 
     contract award, amendment, or modification for which the 
     Secretary intends to grant such a waiver, the Secretary shall 
     submit to the appropriate congressional committees a report 
     notifying the committees of the waiver and setting forth the 
     reasons for the waiver.
       (b) Production or Provision of Articles or Services.--None 
     of the funds authorized to be appropriated to the Secretary 
     by this division may be used to produce or provide articles 
     or services for the purpose of selling the articles or 
     services to a person outside the Federal Government, unless 
     the Secretary determines that comparable articles or services 
     are not available from a commercial source in the United 
     States.
       (c) Requests for Proposals.--None of the funds authorized 
     to be appropriated to the Secretary by this division may be 
     used by the Department to prepare or initiate Requests for 
     Proposals for a program if the program has not been 
     authorized by Congress.

     SEC. 2603. COST SHARING.

       (a) Research and Development.--Except as otherwise provided 
     in this division, for research and development programs 
     carried out under this division, 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 division, the Secretary shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this division 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 division.
       (c) Calculation of Amount.--In calculating the amount of 
     the non-Federal commitment under subsection (a) or (b), the 
     Secretary may include personnel, services, equipment, and 
     other resources.

     SEC. 2604. LIMITATION ON DEMONSTRATION AND COMMERCIAL 
                   APPLICATION OF ENERGY TECHNOLOGY.

       Except as otherwise provided in this division, the 
     Secretary shall provide funding for scientific or energy 
     demonstration and commercial application of energy technology 
     programs, projects, or activities only for technologies or 
     processes that can be reasonably expected to yield new, 
     measurable benefits to the cost, efficiency, or performance 
     of the technology or process.

     SEC. 2605. REPROGRAMMING.

       (a) Authority.--The Secretary may use amounts appropriated 
     under this division for a program, project, or activity other 
     than the program, project, or activity for which such amounts 
     were appropriated only if--
       (1) the Secretary has transmitted to the appropriate 
     congressional committees a report described in subsection (b) 
     and a period of 30 days has elapsed after such committees 
     receive the report;
       (2) amounts used for the program, project, or activity do 
     not exceed--
       (A) 105 percent of the amount authorized for the program, 
     project, or activity; or
       (B) $250,000 more than the amount authorized for the 
     program, project, or activity,
     whichever is less; and
       (3) the program, project, or activity has been presented 
     to, or requested of, the Congress by the Secretary.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated by the Secretary pursuant to this division 
     exceed the total amount authorized to be appropriated to the 
     Secretary by this division.
       (2) Funds appropriated to the Secretary pursuant to this 
     division may not be used for an item for which Congress has 
     declined to authorize funds.

               Subtitle B--Other Miscellaneous Provisions

     SEC. 2611. NOTICE OF REORGANIZATION.

       The Secretary shall provide notice to the appropriate 
     congressional committees not later than 15 days before any 
     reorganization of any environmental research or development, 
     scientific or energy research, development, or demonstration, 
     or commercial application of energy technology program, 
     project, or activity of the Department.

     SEC. 2612. LIMITS ON GENERAL PLANT PROJECTS.

       If, at any time during the construction of a civilian 
     environmental research and development, scientific or energy 
     research, development, or demonstration, or commercial 
     application of energy technology project of the Department 
     for which no specific funding level is provided by law, the 
     estimated cost (including any revision thereof) of the 
     project exceeds $5,000,000, the Secretary may not continue 
     such construction unless the Secretary has furnished a 
     complete report to the appropriate congressional committees 
     explaining the project and the reasons for the estimate or 
     revision.

     SEC. 2613. LIMITS ON CONSTRUCTION PROJECTS.

       (a) Limitation.--Except as provided in subsection (b), 
     construction on a civilian environmental research and 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     project of the Department for which funding has been 
     specifically provided by law may not be started, and 
     additional obligations may not be incurred in

[[Page H5076]]

     connection with the project above the authorized funding 
     amount, whenever the current estimated cost of the 
     construction project exceeds by more than 10 percent the 
     higher of--
       (1) the amount authorized for the project, if the entire 
     project has been funded by the Congress; or
       (2) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (b) Notice.--An action described in subsection (a) may be 
     taken if--
       (1) the Secretary has submitted to the appropriate 
     congressional committees a report on the proposed actions and 
     the circumstances making such actions necessary; and
       (2) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (c) Exclusion.--In the computation of the 30-day period 
     described in subsection (b)(2), there shall be excluded any 
     day on which either House of Congress is not in session 
     because of an adjournment of more than 3 days to a day 
     certain.
       (d) Exception.--Subsections (a) and (b) shall not apply to 
     any construction project that has a current estimated cost of 
     less than $5,000,000.

     SEC. 2614. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a civilian environmental 
     research and development, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity of the 
     Department, the Secretary shall complete a conceptual design 
     for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $750,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds for a construction project, the total 
     estimated cost of which is less than $5,000,000.
       (b) Authority for Construction Design.--(1) The Secretary 
     may carry out construction design (including architectural 
     and engineering services) in connection with any proposed 
     construction project that is in support of a civilian 
     environmental research and development, scientific or energy 
     research, development, and demonstration, or commercial 
     application of energy technology program, project, or 
     activity of the Department if the total estimated cost for 
     such design does not exceed $250,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project described in 
     paragraph (1) exceeds $250,000, funds for such design must be 
     specifically authorized by law.

     SEC. 2615. NATIONAL ENERGY POLICY DEVELOPMENT GROUP MANDATED 
                   REPORTS.

       (a) The Secretary's Review of Energy Efficiency Renewable 
     Energy, and Alternative Energy Research and Development.--
     Upon completion of the Secretary's review of current funding 
     and historic performance of the Department's energy 
     efficiency, renewable energy, and alternative energy research 
     and development programs in response to the recommendations 
     of the May 16, 2001, Report of the National Energy Policy 
     Development Group, the Secretary shall transmit a report 
     containing the results of such review to the appropriate 
     congressional committees.
       (b) Review and Recommendations on Using the Nation's Energy 
     Resources More Efficiently.--Upon completion of the Office of 
     Science and Technology Policy and the President's Council of 
     Advisors on Science and Technology reviewing and making 
     recommendations on using the Nation's energy resources more 
     efficiently, in response to the recommendation of the May 16, 
     2001, Report of the National Energy Policy Development Group, 
     the Director of the Office of Science and Technology Policy 
     shall transmit a report containing the results of such review 
     and recommendations to the appropriate congressional 
     committees.

     SEC. 2616. PERIODIC REVIEWS AND ASSESSMENTS.

       The Secretary shall enter into appropriate arrangements 
     with the National Academies of Sciences and Engineering to 
     ensure that there be periodic reviews and assessments of the 
     programs authorized by this division, as well as the 
     measurable cost and performance-based goals for such programs 
     as established under section 2004, and the progress on 
     meeting such goals. Such reviews and assessments shall be 
     conducted at least every 5 years, or more often as the 
     Secretary considers necessary, and the Secretary shall 
     transmit to the appropriate congressional committees reports 
     containing the results of such reviews and assessments.

                               DIVISION C

     SEC. 3001. SHORT TITLE.

       (a) Short Title.--This division may be cited as the 
     ``Energy Tax Policy Act of 2001''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this division 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.

                         TITLE I--CONSERVATION

     SEC. 3101. CREDIT FOR RESIDENTIAL SOLAR ENERGY PROPERTY.

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

     ``SEC. 25C. RESIDENTIAL SOLAR ENERGY PROPERTY.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the sum 
     of--
       ``(1) 15 percent of the qualified photovoltaic property 
     expenditures made by the taxpayer during such year, and
       ``(2) 15 percent of the qualified solar water heating 
     property expenditures made by the taxpayer during the taxable 
     year.
       ``(b) Limitations.--
       ``(1) Maximum credit.--The credit allowed under subsection 
     (a) shall not exceed--
       ``(A) $2,000 for each system of property described in 
     subsection (c)(1), and
       ``(B) $2,000 for each system of property described in 
     subsection (c)(2).
       ``(2) Safety certifications.--No credit shall be allowed 
     under this section for an item of property unless--
       ``(A) in the case of solar water heating equipment, such 
     equipment is certified for performance and safety by the non-
     profit Solar Rating Certification Corporation or a comparable 
     entity endorsed by the government of the State in which such 
     property is installed, and
       ``(B) in the case of a photovoltaic system, such system 
     meets appropriate fire and electric code requirements.
       ``(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 sections 23, 25D, and 25E) and 
     section 27 for the taxable year.
       ``(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 to heat water for use in a 
     dwelling unit located in the United States and used as a 
     residence if at least half of the energy used by such 
     property for such purpose is derived from the sun.
       ``(2) Qualified photovoltaic property expenditure.--The 
     term `qualified photovoltaic property expenditure' means an 
     expenditure for property that uses solar energy to generate 
     electricity for use in a dwelling unit.
       ``(3) 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) solely because it constitutes a 
     structural component of the structure on which it is 
     installed.
       ``(4) Labor costs.--Expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the property described in paragraph (1) or 
     (2) and for piping or wiring to interconnect such property to 
     the dwelling unit shall be taken into account for purposes of 
     this section.
       ``(5) 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.
       ``(d) Special Rules.--
       ``(1) 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 shall apply:
       ``(A) The amount of the credit allowable under subsection 
     (a) by reason of expenditures (as the case may be) made 
     during such calendar year by any of such individuals with 
     respect to such dwelling unit shall be determined by treating 
     all of such individuals as 1 taxpayer whose taxable year is 
     such calendar year.
       ``(B) There shall be allowable with respect to such 
     expenditures to each of such individuals, a credit under 
     subsection (a) for the taxable year in which such calendar 
     year ends in an amount which bears the same ratio to the 
     amount determined under subparagraph (A) as the amount of 
     such expenditures made by such individual during such 
     calendar year bears to the aggregate of such expenditures 
     made by all of such individuals during such calendar year.
       ``(2) Tenant-stockholder in cooperative housing 
     corporation.--In the case of an individual who is a tenant-
     stockholder (as defined in section 216) in a cooperative 
     housing corporation (as defined in such section), such 
     individual shall be treated as having made his tenant-
     stockholder's proportionate share (as defined in section 
     216(b)(3)) of any expenditures of such corporation.
       ``(3) 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 he owns, such individual

[[Page H5077]]

     shall be treated as having made his 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.
       ``(4) 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.
       ``(5) 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.
       ``(6) 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 in to account expenditures which are made 
     from subsidized energy financing (as defined in section 
     48(a)(4)(A)).
       ``(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, 
     2006 (December 31, 2008, with respect to qualified 
     photovoltaic property expenditures).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (27), by striking the period 
     at the end of paragraph (28) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(29) 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 solar energy property.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2001.

     SEC. 3102. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY 
                   PRODUCED FROM RENEWABLE RESOURCES.

       (a) Extension of Credit for Wind and Closed-Loop Biomass 
     Facilities.--Subparagraphs (A) and (B) of section 45(c)(3) 
     are each amended by striking ``2002'' and inserting ``2007''.
       (b) Expansion of Credit for Open-loop biomass and landfill 
     gas facilities.--Paragraph (3) of section 45(c) is amended by 
     adding at the end the following new subparagraphs:
       ``(D) Open-loop biomass facilities.--In the case of a 
     facility using open-loop biomass to produce electricity, the 
     term `qualified facility' means any facility owned by the 
     taxpayer which is originally placed in service before January 
     1, 2007.
       ``(E) Landfill gas facilities.--In the case of a facility 
     producing electricity from gas derived from the 
     biodegradation of municipal solid waste, the term `qualified 
     facility' means any facility owned by the taxpayer which is 
     originally placed in service before January 1, 2007.''.
       (c) Definition and Special Rules.--Subsection (c) of 
     section 45 is amended by adding at the end the following new 
     paragraphs:
       ``(5) Open-loop biomass.--The term `open-loop biomass' 
     means any solid, nonhazardous, cellulosic waste material 
     which is segregated from other waste materials and which is 
     derived from--
       ``(A) any of the following forest-related resources: mill 
     residues, precommercial thinnings, slash, and brush, but not 
     including old-growth timber,
       ``(B) solid wood waste materials, including waste pallets, 
     crates, dunnage, manufacturing and construction wood wastes 
     (other than pressure-treated, chemically-treated, or painted 
     wood wastes), and landscape or right-of-way tree trimmings, 
     but not including municipal solid waste (garbage), gas 
     derived from the biodegradation of solid waste, or paper that 
     is commonly recycled, or
       ``(C) agriculture sources, including orchard tree crops, 
     vineyard, grain, legumes, sugar, and other crop by-products 
     or residues.
     Such term shall not include closed-loop biomass.
       ``(6) Reduced credit for certain preeffective date 
     facilities.--In the case of any facility described in 
     subparagraph (D) or (E) of paragraph (3) which is placed in 
     service before the date of the enactment of this 
     subparagraph--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `1.0 cents' for `1.5 cents', and
       ``(B) the 5-year period beginning on the date of the 
     enactment of this paragraph shall be substituted in lieu of 
     the 10-year period in subsection (a)(2)(A)(ii).
       ``(7) Limit on reductions for grants, etc., for open-loop 
     biomass facilities.--If the amount of the credit determined 
     under subsection (a) with respect to any open-loop biomass 
     facility is required to be reduced under paragraph (3) of 
     subsection (b), the fraction under such paragraph shall in no 
     event be greater than \4/5\.
       ``(8) Coordination with section 29.--The term `qualified 
     facility' shall not include any facility the production from 
     which is allowed as a credit under section 29 for the taxable 
     year or any prior taxable year.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to electricity sold after the date of the 
     enactment of this Act.

     SEC. 3103. CREDIT FOR QUALIFIED STATIONARY FUEL CELL 
                   POWERPLANTS.

       (a) Business Property.--
       (1) In general.--Subparagraph (A) of section 48(a)(3) 
     (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) equipment which is part of a qualified stationary 
     fuel cell powerplant,''.
       (2) Qualified stationary fuel cell powerplant.--Subsection 
     (a) of section 48 is amended by redesignating paragraphs (4) 
     and (5) as paragraphs (5) and (6), respectively, and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) Qualified stationary fuel cell powerplant.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified stationary fuel cell 
     powerplant' means a stationary fuel cell power plant that has 
     an electricity-only generation efficiency greater than 30 
     percent.
       ``(B) Limitation.--In the case of qualified stationary fuel 
     cell powerplant placed in service during the taxable year, 
     the credit under subsection (a) for such year may not exceed 
     $1,000 for each kilowatt of capacity.
       ``(C) Stationary fuel cell power plant.--The term 
     `stationary fuel cell power plant' means an integrated system 
     comprised of a fuel cell stack assembly and associated 
     balance of plant components that converts a fuel into 
     electricity using electrochemical means.
       ``(D) Termination.--Such term shall not include any 
     property placed in service after December 31, 2006.''
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2001, 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).
       (b) Nonbusiness Property.--
       (1) In general.--Subpart A of part IV of subchapter A of 
     chapter 1 (relating to nonrefundable personal credits) is 
     amended by inserting after section 25C the following new 
     section:

     ``SEC. 25D. NONBUSINESS QUALIFIED STATIONARY FUEL CELL 
                   POWERPLANT.

       ``(a) In General.--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 10 percent of 
     the qualified stationary fuel cell powerplant expenditures 
     which are paid or incurred during such year.
       ``(b) Limitations.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for the taxable year and all prior taxable years shall not 
     exceed $1,000 for each kilowatt of capacity.
       ``(2) 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 sections 23 and 25E) and section 
     27 for the taxable year.
       ``(c) Qualified Stationary Fuel Cell Powerplant 
     Expenditures.--For purposes of this section, the term 
     `qualified stationary fuel cell powerplant expenditures' 
     means expenditures by the taxpayer for any qualified 
     stationary fuel cell powerplant (as defined in section 
     48(a)(4))--
       ``(1) which meets the requirements of subparagraphs (B) and 
     (D) of section 48(a)(3), and
       ``(2) which is installed on or in connection with a 
     dwelling unit--
       ``(A) which is located in the United States, and
       ``(B) which is used by the taxpayer as a residence.
     Such term includes expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the property.
       ``(d) Special Rules.--For purposes of this section, rules 
     similar to the rules of section 25C(d) shall apply.
       ``(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.

[[Page H5078]]

       ``(f) Termination.--This section shall not apply to any 
     expenditure made after December 31, 2006.''.
       (2) Conforming Amendments.--
       (A) Subsection (a) of section 1016 is amended by striking 
     ``and'' at the end of paragraph (28), by striking the period 
     at the end of paragraph (29) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(30) to the extent provided in section 25D(e), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 25D.''.
       (B) 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 25C the following new item:

``Sec. 25D. Nonbusiness qualified stationary fuel cell powerplant.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to expenditures paid or incurred after December 
     31, 2001.

     SEC. 3104. ALTERNATIVE MOTOR VEHICLE CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.) is amended 
     by adding at the end the following:

     ``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of--
       ``(1) the new qualified fuel cell motor vehicle credit 
     determined under subsection (b),
       ``(2) the new qualified hybrid motor vehicle credit 
     determined under subsection (c),
       ``(3) the new qualified alternative fuel motor vehicle 
     credit determined under subsection (d), and
       ``(4) the advanced lean burn technology motor vehicle 
     credit determined under subsection (e).
       ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified fuel cell motor vehicle credit determined under 
     this subsection with respect to a new qualified fuel cell 
     motor vehicle placed in service by the taxpayer during the 
     taxable year is--
       ``(A) $4,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds,
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds,
       ``(C) $20,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.
       ``(2) Increase for fuel efficiency.--
       ``(A) In general.--The amount determined under paragraph 
     (1)(A) with respect to a new qualified fuel cell motor 
     vehicle which is a passenger automobile or light truck shall 
     be increased by--
       ``(i) $1,000, if such vehicle achieves at least 150 percent 
     but less than 175 percent of the 2000 model year city fuel 
     economy,
       ``(ii) $1,500, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2000 model year city 
     fuel economy,
       ``(iii) $2,000, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2000 model year city 
     fuel economy,
       ``(iv) $2,500, if such vehicle achieves at least 225 
     percent but less than 250 percent of the 2000 model year city 
     fuel economy,
       ``(v) $3,000, if such vehicle achieves at least 250 percent 
     but less than 275 percent of the 2000 model year city fuel 
     economy,
       ``(vi) $3,500, if such vehicle achieves at least 275 
     percent but less than 300 percent of the 2000 model year city 
     fuel economy, and
       ``(vii) $4,000, if such vehicle achieves at least 300 
     percent of the 2000 model year city fuel economy.
       ``(B) 2000 model year city fuel economy.--For purposes of 
     subparagraph (A), the 2000 model year city fuel economy with 
     respect to a vehicle shall be determined in accordance with 
     the following tables:
       ``(i) In the case of a passenger automobile:

``If vehicle inertia weight clThe 2000 model year city fuel 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.....

       ``(ii) In the case of a light truck:

``If vehicle inertia weight clThe 2000 model year city fuel 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.....

       ``(C) Vehicle inertia weight class.--For purposes of 
     subparagraph (B), the term `vehicle inertia weight class' has 
     the same meaning as when defined in regulations prescribed by 
     the Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(3) New qualified fuel cell motor vehicle.--For purposes 
     of this subsection, the term `new qualified fuel cell motor 
     vehicle' means a motor vehicle--
       ``(A) which is propelled by power derived from one or more 
     cells which convert chemical energy directly into electricity 
     by combining oxygen with hydrogen fuel which is stored on 
     board the vehicle in any form and may or may not require 
     reformation prior to use,
       ``(B) which, in the case of a passenger automobile or light 
     truck--
       ``(i) for 2002 and later model vehicles, has received a 
     certificate of conformity under the Clean Air Act and meets 
     or exceeds the equivalent qualifying California low emission 
     vehicle standard under section 243(e)(2) of the Clean Air Act 
     for that make and model year, and
       ``(ii) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Tier II 
     emission level established in regulations prescribed by the 
     Administrator of the Environmental Protection Agency under 
     section 202(i) of the Clean Air Act for that make and model 
     year vehicle,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(c) New Qualified Hybrid Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified hybrid motor vehicle credit determined under this 
     subsection with respect to a new qualified hybrid motor 
     vehicle placed in service by the taxpayer during the taxable 
     year is the credit amount determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) In general.--The credit amount determined under this 
     paragraph shall be determined in accordance with the 
     following tables:
       ``(i) In the case of a new qualified hybrid motor vehicle 
     which is a passenger automobile or light truck and which 
     provides the following percentage of the maximum available 
     power:

``If percentage of the maximum available power is:The credit amount is:
  At least 2.5 percent but less than 10 percent...............$250 ....

  At least 10 percent but less than 20 percent................$500 ....

  At least 20 percent but less than 30 percent................$750 ....

  At least 30 percent.......................................$1,000.....

       ``(ii) In the case of a new qualified hybrid motor vehicle 
     which is a heavy duty hybrid motor vehicle and which provides 
     the following percentage of the maximum available power:

       ``(I) If such vehicle has a gross vehicle weight rating of 
     not more than 14,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$1,500 ....

  At least 30 percent but less than 40 percent..............$1,750 ....

  At least 40 percent but less than 50 percent..............$2,000 ....

  At least 50 percent but less than 60 percent..............$2,250 ....

  At least 60 percent.......................................$2,500.....

       ``(II) If such vehicle has a gross vehicle weight rating of 
     more than 14,000 but not more than 26,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$4,000 ....

  At least 30 percent but less than 40 percent..............$4,500 ....

[[Page H5079]]

  At least 40 percent but less than 50 percent..............$5,000 ....

  At least 50 percent but less than 60 percent..............$5,500 ....

  At least 60 percent.......................................$6,000.....

       ``(III) If such vehicle has a gross vehicle weight rating 
     of more than 26,000 pounds:

``If percentage of the maximum available power is:The credit amount is:
  At least 20 percent but less than 30 percent..............$6,000 ....

  At least 30 percent but less than 40 percent..............$7,000 ....

  At least 40 percent but less than 50 percent..............$8,000 ....

  At least 50 percent but less than 60 percent..............$9,000 ....

  At least 60 percent......................................$10,000.....

       ``(B) Increase for fuel efficiency.--
       ``(i) Amount.--The amount determined under subparagraph 
     (A)(i) with respect to a passenger automobile or light truck 
     shall be increased by--

       ``(I) $1,000, if such vehicle achieves at least 125 percent 
     but less than 150 percent of the 2000 model year city fuel 
     economy,
       ``(II) $1,500, if such vehicle achieves at least 150 
     percent but less than 175 percent of the 2000 model year city 
     fuel economy,

       ``(III) $2,000, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2000 model year city 
     fuel economy,
       ``(IV) $2,500, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2000 model year city 
     fuel economy,
       ``(V) $3,000, if such vehicle achieves at least 225 percent 
     but less than 250 percent of the 2000 model year city fuel 
     economy, and
       ``(VI) $3,500, if such vehicle achieves at least 250 
     percent of the 2000 model year city fuel economy.

       ``(ii) 2000 model year city fuel economy.--For purposes of 
     clause (i), the 2000 model year city fuel economy with 
     respect to a vehicle shall be determined using the tables 
     provided in subsection (b)(2)(B) with respect to such 
     vehicle.
       ``(iii) Option to use like vehicle.--For purposes of clause 
     (i), at the option of the vehicle manufacturer, the increase 
     for fuel efficiency may be calculated by comparing the new 
     qualified hybrid motor vehicle to a `like vehicle'.
       ``(C) Increase for accelerated emissions performance.--The 
     amount determined under subparagraph (A)(ii) with respect to 
     an applicable heavy duty hybrid motor vehicle shall be 
     increased by the increase credit amount determined in 
     accordance with the following tables:
       ``(i) In the case of a vehicle which has a gross vehicle 
     weight rating of not more than 14,000 pounds:

``If the model year is:                  The increase credit amount is:
  2002......................................................$3,500 ....

  2003......................................................$3,000 ....

  2004......................................................$2,500 ....

  2005......................................................$2,000 ....

  2006......................................................$1,500.....

       ``(ii) In the case of a vehicle which has a gross vehicle 
     weight rating of more than 14,000 pounds but not more than 
     26,000 pounds:

``If the model year is:                  The increase credit amount is:
  2002......................................................$9,000 ....

  2003......................................................$7,750 ....

  2004......................................................$6,500 ....

  2005......................................................$5,250 ....

  2006......................................................$4,000.....

       ``(iii) In the case of a vehicle which has a gross vehicle 
     weight rating of more than 26,000 pounds:
``If the model year is:                  The increase credit amount is:
  2002.....................................................$14,000 ....

  2003.....................................................$12,000 ....

  2004.....................................................$10,000 ....

  2005......................................................$8,000 ....

  2006......................................................$6,000.....

       ``(D) Conservation credit.--
       ``(i) Amount.--The amount determined under subparagraph 
     (A)(i) with respect to a passenger automobile or light truck 
     shall be increased by--

       ``(I) $250, if such vehicle achieves a lifetime fuel 
     savings of at least 1,500 gallons of gasoline, and
       ``(II) $500, if such vehicle achieves a lifetime fuel 
     savings of at least 2,500 gallons of gasoline.

       ``(ii) Lifetime fuel savings for like vehicle.--For 
     purposes of clause (i), at the option of the vehicle 
     manufacturer, the lifetime fuel savings fuel may be 
     calculated by comparing the new qualified hybrid motor 
     vehicle to a `like vehicle'.
       ``(E) Definitions.--
       ``(i) Applicable heavy duty hybrid motor vehicle.--For 
     purposes of subparagraph (C), the term `applicable heavy duty 
     hybrid motor vehicle' means a heavy duty hybrid motor vehicle 
     which is powered by an internal combustion or heat engine 
     which is certified as meeting the emission standards set in 
     the regulations prescribed by the Administrator of the 
     Environmental Protection Agency for 2007 and later model year 
     diesel heavy duty engines or 2008 and later model year 
     ottocycle heavy duty engines, as applicable.
       ``(ii) Heavy duty hybrid motor vehicle.--For purposes of 
     this paragraph, the term `heavy duty hybrid motor vehicle' 
     means a new qualified hybrid motor vehicle which has a gross 
     vehicle weight rating of more than 10,000 pounds and draws 
     propulsion energy from both of the following onboard sources 
     of stored energy:

       ``(I) An internal combustion or heat engine using 
     consumable fuel which, for 2002 and later model vehicles, has 
     received a certificate of conformity under the Clean Air Act 
     and meets or exceeds a level of not greater than 3.0 grams 
     per brake horsepower-hour of oxides of nitrogen and 0.01 per 
     brake horsepower-hour of particulate matter.
       ``(II) A rechargeable energy storage system.

       ``(iii) Maximum available power.--

       ``(I) Passenger automobile or light truck.--For purposes of 
     subparagraph (A)(i), the term `maximum available power' means 
     the maximum power available from the battery or other 
     electrical storage device, during a standard 10 second pulse 
     power test, divided by the sum of the battery or other 
     electrical storage device and the SAE net power of the heat 
     engine.
       ``(II) Heavy duty hybrid motor vehicle.--For purposes of 
     subparagraph (A)(ii), the term `maximum available power' 
     means the maximum power available from the battery or other 
     electrical storage device, during a standard 10 second pulse 
     power test, divided by the vehicle's total traction power. 
     The term `total traction power' means the sum of the electric 
     motor peak power and the heat engine peak power of the 
     vehicle, except that if the electric motor is the sole means 
     by which the vehicle can be driven, the total traction power 
     is the peak electric motor power.

       ``(iv) Like vehicle.--For purposes of subparagraph 
     (B)(iii), the term `like vehicle' for a new qualified hybrid 
     motor vehicle derived from a conventional production vehicle 
     produced in the same model year means a model that is 
     equivalent in the following areas:

       ``(I) Body style (2-door or 4-door).
       ``(II) Transmission (automatic or manual).
       ``(III) Acceleration performance ( 0.05 seconds).

       ``(IV) Drivetrain (2-wheel drive or 4-wheel drive).
       ``(V) Certification by the Administrator of the 
     Environmental Protection Agency.

       ``(v) Lifetime fuel savings.--For purposes of subsection 
     (c)(2)(D), the term `lifetime fuel savings' shall be 
     calculated by dividing 120,000 by the difference between the 
     2000 model year city fuel economy for the vehicle inertia 
     weight class and the city fuel economy for the new qualified 
     hybrid motor vehicle.
       ``(3) New qualified hybrid motor vehicle.--For purposes of 
     this subsection, the term `new qualified hybrid motor 
     vehicle' means a motor vehicle--
       ``(A) which draws propulsion energy from onboard sources of 
     stored energy which are both--
       ``(i) an internal combustion or heat engine using 
     combustible fuel, and
       ``(ii) a rechargeable energy storage system,
       ``(B) which, in the case of a passenger automobile or light 
     truck, for 2002 and later model vehicles, has received a 
     certificate of conformity under the Clean Air Act and meets 
     or exceeds the equivalent qualifying California low emission 
     vehicle standard under section 243(e)(2) of the Clean Air Act 
     for that make and model year,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(d) New Qualified Alternative Fuel Motor Vehicle 
     Credit.--
       ``(1) Allowance of credit.--Except as provided in paragraph 
     (5), the credit determined under this subsection is an amount 
     equal to the applicable percentage of the incremental cost of 
     any new qualified alternative fuel motor vehicle placed in 
     service by the taxpayer during the taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage with respect to any new 
     qualified alternative fuel motor vehicle is--
       ``(A) 50 percent, plus
       ``(B) 30 percent, if such vehicle--
       ``(i) has received a certificate of conformity under the 
     Clean Air Act and meets or exceeds the most stringent 
     standard available for certification under the Clean Air Act 
     for that make and model year vehicle (other than a zero 
     emission standard), or
       ``(ii) has received an order from an applicable State 
     certifying the vehicle for sale or lease in California and 
     meets or exceeds the most stringent standard available for 
     certification under the State laws of California (enacted in 
     accordance with a waiver granted under section 209(b) of the 
     Clean Air Act) for that make and model year vehicle (other 
     than a zero emission standard).
       ``(3) Incremental cost.--For purposes of this subsection, 
     the incremental cost of any new qualified alternative fuel 
     motor vehicle is equal to the amount of the excess of the 
     manufacturer's suggested retail price for such vehicle over 
     such price for a gasoline or diesel fuel motor vehicle of the 
     same model, to the extent such amount does not exceed--
       ``(A) $5,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds,
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds,
       ``(C) $25,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.
       ``(4) Qualified alternative fuel motor vehicle defined.--
     For purposes of this subsection--

[[Page H5080]]

       ``(A) In general.--The term `qualified alternative fuel 
     motor vehicle' means any motor vehicle--
       ``(i) which is only capable of operating on an alternative 
     fuel,
       ``(ii) the original use of which commences with the 
     taxpayer,
       ``(iii) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(iv) which is made by a manufacturer.
       ``(B) Alternative fuel.--The term `alternative fuel' means 
     compressed natural gas, liquefied natural gas, liquefied 
     petroleum gas, hydrogen, and any liquid at least 85 percent 
     of the volume of which consists of methanol.
       ``(5) Credit for mixed-fuel vehicles.--
       ``(A) In general.--In the case of a mixed-fuel vehicle 
     placed in service by the taxpayer during the taxable year, 
     the credit determined under this subsection is an amount 
     equal to--
       ``(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent 
     of the credit which would have been allowed under this 
     subsection if such vehicle was a qualified alternative fuel 
     motor vehicle, and
       ``(ii) in the case of a 95/5 mixed-fuel vehicle, 95 percent 
     of the credit which would have been allowed under this 
     subsection if such vehicle was a qualified alternative fuel 
     motor vehicle.
       ``(B) Mixed-fuel vehicle.--For purposes of this subsection, 
     the term `mixed-fuel vehicle' means any motor vehicle 
     described in subparagraph (C) or (D) of paragraph (3), 
     which--
       ``(i) is certified by the manufacturer as being able to 
     perform efficiently in normal operation on a combination of 
     an alternative fuel and a petroleum-based fuel,
       ``(ii) either--

       ``(I) has received a certificate of conformity under the 
     Clean Air Act, or
       ``(II) has received an order from an applicable State 
     certifying the vehicle for sale or lease in California and 
     meets or exceeds the low emission vehicle standard under 
     section 88.105-94 of title 40, Code of Federal Regulations, 
     for that make and model year vehicle,

       ``(iii) the original use of which commences with the 
     taxpayer,
       ``(iv) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(v) which is made by a manufacturer.
       ``(C) 75/25 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `75/25 mixed-fuel vehicle' means a 
     mixed-fuel vehicle which operates using at least 75 percent 
     alternative fuel and not more than 25 percent petroleum-based 
     fuel.
       ``(D) 95/5 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `95/5 mixed-fuel vehicle' means a mixed-
     fuel vehicle which operates using at least 95 percent 
     alternative fuel and not more than 5 percent petroleum-based 
     fuel.
       ``(e) Advanced Lean Burn Technology Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the 
     advanced lean burn technology motor vehicle credit determined 
     under this subsection with respect to a new qualified 
     advanced lean burn technology motor vehicle placed in service 
     by the taxpayer during the taxable year is the credit amount 
     determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) Increase for fuel efficiency.--The credit amount 
     determined under this paragraph shall be--
       ``(i) $1,000, if such vehicle achieves at least 125 percent 
     but less than 150 percent of the 2000 model year city fuel 
     economy,
       ``(ii) $1,500, if such vehicle achieves at least 150 
     percent but less than 175 percent of the 2000 model year city 
     fuel economy,
       ``(iii) $2,000, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2000 model year city 
     fuel economy,
       ``(iv) $2,500, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2000 model year city 
     fuel economy,
       ``(v) $3,000, if such vehicle achieves at least 225 percent 
     but less than 250 percent of the 2000 model year city fuel 
     economy, and
       ``(vi) $3,500, if such vehicle achieves at least 250 
     percent of the 2000 model year city fuel economy.
     For purposes of clause (i), the 2000 model year city fuel 
     economy with respect to a vehicle shall be determined using 
     the tables provided in subsection (b)(2)(B) with respect to 
     such vehicle.
       ``(B) Conservation credit.--The amount determined under 
     subparagraph (A) with respect to an advanced lean burn 
     technology motor vehicle shall be increased by--
       ``(i) $250, if such vehicle achieves a lifetime fuel 
     savings of at least 1,500 gallons of gasoline, and
       ``(ii) $500, if such vehicle achieves a lifetime fuel 
     savings of at least 2,500 gallons of gasoline.
       ``(C) Option to use like vehicle.--At the option of the 
     vehicle manufacturer, the increase for fuel efficiency and 
     conservation credit may be calculated by comparing the new 
     advanced lean-burn technology motor vehicle to a like 
     vehicle.
       ``(3) Definitions.--For purposes of this subsection.--
       ``(A) Advanced lean burn technology motor vehicle.--The 
     term `advanced lean burn technology motor vehicle' means a 
     motor vehicle with an internal combustion engine that--
       ``(i) is designed to operate primarily using more air than 
     is necessary for complete combustion of the fuel,
       ``(ii) incorporates direct injection,
       ``(iii) achieves at least 125 percent of the 2000 model 
     year city fuel economy, and
       ``(iv) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5, 
     Tier 2 emission levels (for passenger vehicles) or Bin 8, 
     Tier 2 emission levels (for light trucks) established in 
     regulations prescribed by the Administrator of the 
     Environmental Protection Agency under section 202(i) of the 
     Clean Air Act for that make and model year vehicle.
       ``(B) Like vehicle.--The term `like vehicle' for an 
     advanced lean burn technology motor vehicle derived from a 
     conventional production vehicle produced in the same model 
     year means a model that is equivalent in the following areas:
       ``(i) Body style (2-door or 4-door),
       ``(ii) Transmission (automatic or manual),
       ``(iii) Acceleration performance ( 0.05 seconds).
       ``(iv) Drivetrain (2-wheel drive or 4-wheel drive).
       ``(v) Certification by the Administrator of the 
     Environmental Protection Agency.
       ``(C) Lifetime fuel savings.--The term `lifetime fuel 
     savings' shall be calculated by dividing 120,000 by the 
     difference between the 2000 model year city fuel economy for 
     the vehicle inertia weight class and the city fuel economy 
     for the new qualified hybrid motor vehicle.
       ``(f) 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, 29, and 30A for the taxable year.
       ``(g) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Consumable fuel.--The term `consumable fuel' means 
     any solid, liquid, or gaseous matter which releases energy 
     when consumed by an auxiliary power unit.
       ``(2) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(3) 2000 model year city fuel economy.--The 2000 model 
     year city fuel economy with respect to any vehicle shall be 
     measured under rules similar to the rules under section 
     4064(c).
       ``(4) Other terms.--The terms `automobile', `passenger 
     automobile', `light truck', and `manufacturer' have the 
     meanings given such terms in regulations prescribed by the 
     Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(5)  Reduction in basis.--For purposes of this subtitle, 
     the basis of any property for which a credit is allowable 
     under subsection (a) shall be reduced by the amount of such 
     credit so allowed.
       ``(6) No double benefit.--The amount of any deduction or 
     credit allowable under this chapter (other than the credit 
     allowable under this section)--
       ``(A) for any incremental cost taken into account in 
     computing the amount of the credit determined under 
     subsection (d) shall be reduced by the amount of such credit 
     attributable to such cost, and
       ``(B) with respect to a vehicle described under subsection 
     (b) or (c), shall be reduced by the amount of credit allowed 
     under subsection (a) for such vehicle for the taxable year.
       ``(7) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to a motor 
     vehicle which is acquired by an entity exempt from tax under 
     this chapter, the person which sells or leases such vehicle 
     to the entity shall be treated as the taxpayer with respect 
     to the vehicle for purposes of this section and the credit 
     shall be allowed to such person, but only if the person 
     clearly discloses to the entity in any sale or lease document 
     the specific amount of any credit otherwise allowable to the 
     entity under this section and reduces the sale or lease price 
     of such vehicle by an equivalent amount of such credit.
       ``(8) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of a vehicle).
       ``(9) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b) or 
     with respect to the portion of the cost of any property taken 
     into account under section 179.
       ``(10) Election to not take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(11) Carryforward allowed.--
       ``(A) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (f) 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.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     subparagraph (A).
       ``(12) Interaction with air quality and motor vehicle 
     safety standards.--Unless

[[Page H5081]]

     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.
       ``(h) Regulations.--
       ``(1) In general.--The Secretary shall promulgate such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(2) Administrator of environmental protection agency.--
     The Administrator of the Environmental Protection Agency, in 
     coordination with the Secretary of Transportation and the 
     Secretary of the Treasury, shall prescribe such regulations 
     as necessary to determine whether a motor vehicle meets the 
     requirements to be eligible for a credit under this section.
       ``(i) Termination.--This section shall not apply to any 
     property placed in service after--
       ``(1) in the case of a new qualified fuel cell motor 
     vehicle (as described in subsection (b)), December 31, 2011, 
     and
       ``(2) in the case of any other property, December 31, 
     2007.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (29), by striking the period at the end of 
     paragraph (30) and inserting ``, and'', and by adding at the 
     end the following:
       ``(31) to the extent provided in section 30B(g)(5).''.
       (2) Section 6501(m) is amended by inserting ``30B(g)(10),'' 
     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. Alternative motor vehicle credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001, in taxable years ending after such date.

     SEC. 3105. EXTENSION OF DEDUCTION FOR CERTAIN REFUELING 
                   PROPERTY.

       (a) In General.--Section 179A(f) (relating to termination) 
     is amended by striking ``2004'' and inserting ``2007''.
       (b) Modification of Phaseout.--Subparagraph (B) of section 
     179A(b)(1) is amended--
       (1) in clause (i), by striking ``2002'' and inserting 
     ``2005'',
       (2) in clause (ii), by striking ``2003'' and inserting 
     ``2006'', and
       (3) in clause (iii), by striking ``2004'' and inserting 
     ``2007''.

     SEC. 3106. MODIFICATION OF CREDIT FOR QUALIFIED ELECTRIC 
                   VEHICLES.

       (a) Amount of Credit.--
       (1) In general.--Section 30(a) (relating to allowance of 
     credit) is amended by striking ``10 percent of''.
       (2) Limitation of credit according to type of vehicle.--
     Section 30(b) (relating to limitations) is amended--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Limitation according to type of vehicle.--The amount 
     of the credit allowed under subsection (a) for any vehicle 
     shall not exceed the greatest of the following amounts 
     applicable to such vehicle:
       ``(A) In the case of a vehicle which conforms to the Motor 
     Vehicle Safety Standard 500 prescribed by the Secretary of 
     Transportation, the lesser of--
       ``(i) 10 percent of the manufacturer's suggested retail 
     price of the vehicle, or
       ``(ii) $4,000.
       ``(B) In the case of a vehicle not described in 
     subparagraph (A) with a gross vehicle weight rating not 
     exceeding 8,500 pounds--
       ``(i) $4,000, or
       ``(ii) $5,000, if such vehicle is--

       ``(I) capable of a driving range of at least 70 miles on a 
     single charge of the vehicle's rechargeable batteries and 
     measured pursuant to the urban dynamometer schedules under 
     appendix I to part 86 of title 40, Code of Federal 
     Regulations, or
       ``(II) capable of a payload capacity of at least 1,000 
     pounds.

       ``(C) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 8,500 pounds but not exceeding 14,000 
     pounds, $10,000.
       ``(D) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 14,000 pounds but not exceeding 26,000 
     pounds, $20,000.
       ``(E) In the case of a vehicle with a gross vehicle weight 
     rating exceeding 26,000 pounds, $40,000.'', and
       (B) by redesignating paragraph (3) as paragraph (2).
       (3) Conforming amendments.--
       (A) Section 53(d)(1)(B)(iii) is amended by striking 
     ``section 30(b)(3)(B)'' and inserting ``section 
     30(b)(2)(B)''.
       (B) Section 55(c)(2) is amended by striking ``30(b)(3)'' 
     and inserting ``30(b)(2)''.
       (b) Qualified Battery Electric Vehicle.--
       (1) In general.--Section 30(c)(1)(A) (defining qualified 
     electric vehicle) is amended to read as follows:
       ``(A) which is--
       ``(i) operated solely by use of a battery or battery pack, 
     or
       ``(ii) powered primarily through the use of an electric 
     battery or battery pack using a flywheel or capacitor which 
     stores energy produced by an electric motor through 
     regenerative braking to assist in vehicle operation,''.
       (2) Leased vehicles.--Section 30(c)(1)(C) is amended by 
     inserting ``or lease'' after ``use''.
       (3) Conforming amendments.--
       (A) Subsections (a), and (c) of section 30 are each amended 
     by inserting ``battery'' after ``qualified'' each place it 
     appears.
       (B) The heading of subsection (c) of section 30 is amended 
     by inserting ``Battery'' after ``Qualified''.
       (C) The heading of section 30 is amended by inserting 
     ``battery'' after ``qualified''.
       (D) The item relating to section 30 in the table of 
     sections for subpart B of part IV of subchapter A of chapter 
     1 is amended by inserting ``battery'' after ``qualified''.
       (E) Section 179A(c)(3) is amended by inserting ``battery'' 
     before ``electric''.
       (F) The heading of paragraph (3) of section 179A(c) is 
     amended by inserting ``battery'' before ``electric''.
       (c) Additional Special Rules.--Section 30(d) (relating to 
     special rules) is amended by adding at the end the following:
       ``(5) No double benefit.--The amount of any deduction or 
     credit allowable under this chapter for any cost taken into 
     account in computing the amount of the credit determined 
     under subsection (a) shall be reduced by the amount of such 
     credit attributable to such cost.
       ``(6) Property used by tax-exempt entities.--In the case of 
     a credit amount which is allowable with respect to a vehicle 
     which is acquired by an entity exempt from tax under this 
     chapter, the person which sells or leases such vehicle to the 
     entity shall be treated as the taxpayer with respect to the 
     vehicle for purposes of this section and the credit shall be 
     allowed to such person, but only if the person clearly 
     discloses to the entity in any sale or lease contract the 
     specific amount of any credit otherwise allowable to the 
     entity under this section and reduces the sale or lease price 
     of such vehicle by an equivalent amount of such credit.
       ``(7) Carryforward allowed.--
       ``(A) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (b)(3) for such taxable year, 
     such excess shall be allowed as a credit carryforward for 
     each of the 20 taxable years following such taxable year.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     subparagraph (A).''
       (d) Extension.--Section 30(e) (relating to termination) is 
     amended by striking ``2004'' and inserting ``2007''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001, in taxable years ending after such date.

     SEC. 3107. TAX CREDIT FOR ENERGY EFFICIENT APPLIANCES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45G. ENERGY EFFICIENT APPLIANCE CREDIT.

       ``(a) General Rule.--For purposes of section 38, the energy 
     efficient appliance credit determined under this section for 
     the taxable year is an amount equal to the applicable amount 
     determined under subsection (b) with respect to the eligible 
     production of qualified energy efficient appliances produced 
     by the taxpayer during the calendar year ending with or 
     within the taxable year.
       ``(b) Applicable Amount; Eligible Production.--For purposes 
     of subsection (a)--
       ``(1) Applicable amount.--The applicable amount is--
       ``(A) $50 in the case of an energy efficient clothes washer 
     described in subsection (d)(2)(A) or an energy efficient 
     refrigerator described in subsection (d)(3)(B)(i), and
       ``(B) $100 in the case of any other energy efficient 
     clothes washer or energy efficient refrigerator.
       ``(2) Eligible production.--
       ``(A) In general.--The eligible production of each category 
     of qualified energy efficient appliances is the excess of--
       ``(i) the number of appliances in such category which are 
     produced by the taxpayer during such calendar year, over
       ``(ii) the average number of appliances in such category 
     which were produced by the taxpayer during calendar years 
     1998, 1999, and 2000.
       ``(B) Categories.--For purposes of subparagraph (A), the 
     categories are--
       ``(i) energy efficient clothes washers described in 
     subsection (d)(2)(A),
       ``(ii) energy efficient clothes washers described in 
     subsection (d)(2)(B),
       ``(iii) energy efficient refrigerators described in 
     subsection (d)(3)(B)(i), and
       ``(iv) energy efficient refrigerators described in 
     subsection (d)(3)(B)(ii).
       ``(C) Special rule for 2001 production.--For purposes of 
     determining eligible production for calendar year 2001--
       ``(i) only production after the date of the enactment of 
     this section shall be taken into account under subparagraph 
     (A)(i), and
       ``(ii) the amount taken into account under subparagraph 
     (A)(ii) shall be an amount which bears the same ratio to the 
     amount which would (but for this subparagraph) be taken into 
     account under subparagraph (A)(ii) as--

       ``(I) the number of days in calendar year 2001 after the 
     date of the enactment of this section, bears to

[[Page H5082]]

       ``(II) 365.

       ``(c) Limitation on Maximum Credit.--
       ``(1) In general.--The maximum amount of credit allowed 
     under subsection (a) with respect to a taxpayer for all 
     taxable years shall be--
       ``(A) $30,000,000 with respect to the credit determined 
     under subsection (b)(1)(A), and
       ``(B) $30,000,000 with respect to the credit determined 
     under subsection (b)(1)(B).
       ``(2) Limitation based on gross receipts.--The credit 
     allowed under subsection (a) with respect to a taxpayer for 
     the taxable year shall not exceed an amount equal to 2 
     percent of the average annual gross receipts of the taxpayer 
     for the 3 taxable years preceding the taxable year in which 
     the credit is determined.
       ``(3) Gross receipts.--For purposes of this subsection, the 
     rules of paragraphs (2) and (3) of section 448(c) shall 
     apply.
       ``(d) Qualified Energy Efficient Appliance.--For purposes 
     of this section:
       ``(1) In general.--The term `qualified energy efficient 
     appliance' means--
       ``(A) an energy efficient clothes washer, or
       ``(B) an energy efficient refrigerator.
       ``(2) Energy efficient clothes washer.--The term `energy 
     efficient clothes washer' means a residential clothes washer, 
     including a residential style coin operated washer, which is 
     manufactured with--
       ``(A) a 1.26 MEF or greater, or
       ``(B) a 1.42 MEF (1.5 MEF for washers produced after 2004) 
     or greater.
       ``(3) Energy efficient refrigerator.--The term `energy 
     efficient refrigerator' means an automatic defrost 
     refrigerator-freezer which--
       ``(A) has an internal volume of at least 16.5 cubic feet, 
     and
       ``(B) consumes--
       ``(i) 10 percent less kw/hr/yr than the energy conservation 
     standards promulgated by the Department of Energy for 
     refrigerators produced during 2001, and
       ``(ii) 15 percent less kw/hr/yr than such energy 
     conservation standards for refrigerators produced after 2001.
       ``(4) MEF.--The term `MEF' means Modified Energy Factor (as 
     determined by the Secretary of Energy).
       ``(e) Special Rules.--
       ``(1) In general.--Rules similar to the rules of 
     subsections (c), (d), and (e) of section 52 shall apply for 
     purposes of this section.
       ``(2) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 or 
     subsection (m) or (o) of section 414 shall be treated as 1 
     person for purposes of subsection (a).
       ``(f) Verification.--The taxpayer shall submit such 
     information or certification as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     necessary to claim the credit amount under subsection (a).
       ``(g) Termination.--This section shall not apply--
       ``(1) with respect to energy efficient refrigerators 
     described in subsection (d)(3)(B)(i) produced after 2004, and
       ``(2) with respect to all other qualified energy efficient 
     appliances produced after 2006.''.
       (b) Limitation on Carryback.--Section 39(d) (relating to 
     transition rules) is amended by adding at the end the 
     following new paragraph:
       ``(11) No carryback of energy efficient appliance credit 
     before effective date.--No portion of the unused business 
     credit for any taxable year which is attributable to the 
     energy efficient appliance credit determined under section 
     45G may be carried to a taxable year ending before the date 
     of the enactment of section 45G.''.
       (c) Conforming Amendment.--Section 38(b) (relating to 
     general business credit) is amended by striking ``plus'' at 
     the end of paragraph (14), by striking the period at the end 
     of paragraph (15) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(16) the energy efficient appliance credit determined 
     under section 45G(a).''.
       (d) Clerical Amendment.--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 45F the 
     following new item:

``Sec. 45G. Energy efficient appliance credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 3108. 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) is 
     amended by inserting after section 25D the following new 
     section:

     ``SEC. 25E. 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 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 in 1 or more 
     prior taxable years, the amount of the credit otherwise 
     allowable for the taxable year with respect to that dwelling 
     shall not exceed the amount of $2,000 reduced by the sum of 
     the credits allowed under subsection (a) to the taxpayer with 
     respect to the dwelling for all prior taxable years.
       ``(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 23) and section 27 for 
     the taxable year.
       ``(c) Carryforward of Unused Credit.--If the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by subsection (b)(3) for such taxable year, such excess shall 
     be carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such succeeding 
     taxable year.
       ``(d) 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 1998 International Energy 
     Conservation Code, if--
       ``(1) such component is installed in or on a dwelling--
       ``(A) located in the United States, and
       ``(B) 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 exceeds $1,000, such components shall be treated as 
     qualified energy efficiency improvements only if such 
     components are also certified in accordance with subsection 
     (e) as meeting such criteria.
       ``(e) Certification.--The certification described in 
     subsection (d) 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 
     Home Energy Ratings Systems Council or the National 
     Association of State Energy Officials, and
       ``(3) made in writing in a manner that specifies in readily 
     verifiable fashion the energy efficient building envelope 
     components installed and their respective energy efficiency 
     levels.
       ``(f) Definitions and Special Rules.--
       ``(1) 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 paid his tenant-
     stockholder's proportionate share (as defined in section 
     216(b)(3)) of the cost of qualified energy efficiency 
     improvements made by such corporation.
       ``(2) 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 he owns, such individual shall be 
     treated as having paid his proportionate share of the cost of 
     qualified energy efficiency improvements made by 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.
       ``(3) Building envelope component.--The term `building 
     envelope component' means insulation material or system which 
     is specifically and primarily designed to reduce the heat 
     loss or gain of a dwelling when installed in or on such 
     dwelling, exterior windows (including skylights) and doors, 
     and metal roofs with appropriate pigmented coatings which are 
     specifically and primarily designed to reduce the heat gain 
     of a dwelling when installed in or on such dwelling.
       ``(4) Manufactured homes included.--For purposes of this 
     section, the term `dwelling' includes a manufactured home 
     which conforms to Federal Manufactured Home Construction and 
     Safety Standards (24 C.F.R. 3280).
       ``(g) 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.
       ``(h) Application of Section.--This section shall apply to 
     qualified energy efficiency improvements installed after 
     December 31, 2001 and before January 1, 2007.''.
       (b) Conforming Amendments.--

[[Page H5083]]

       (1) Subsection (a) of section 1016 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 25E(g), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 25E.''.
       (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 25D the following new item:

``Sec. 25E. Energy efficiency improvements to existing homes.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2001.

     SEC. 3109. BUSINESS CREDIT FOR CONSTRUCTION OF NEW ENERGY 
                   EFFICIENT HOME.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by inserting after section 45G the following new section:

     ``SEC. 45H. NEW ENERGY EFFICIENT HOME CREDIT.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible contractor, the credit determined under this 
     section for the taxable year is an amount equal to the 
     aggregate adjusted bases of all energy efficient property 
     installed in a qualified new energy efficient home during 
     construction of such home.
       ``(b) Limitations.--
       ``(1) Maximum credit.--
       ``(A) In general.--The credit allowed by this section with 
     respect to a dwelling shall not exceed $2,000.
       ``(B) Prior credit amounts on same dwelling taken into 
     account.--If a credit was allowed under subsection (a) with 
     respect to a dwelling in 1 or more prior taxable years, the 
     amount of the credit otherwise allowable for the taxable year 
     with respect to that dwelling shall not exceed the amount of 
     $2,000 reduced by the sum of the credits allowed under 
     subsection (a) with respect to the dwelling for all prior 
     taxable years.
       ``(2) Coordination with rehabilitation and energy 
     credits.--For purposes of this section--
       ``(A) the basis of any property referred to in subsection 
     (a) shall be reduced by that portion of the basis of any 
     property which is attributable to qualified rehabilitation 
     expenditures (as defined in section 47(c)(2)) or to the 
     energy percentage of energy property (as determined under 
     section 48(a)), and
       ``(B) expenditures taken into account under either section 
     47 or 48(a) shall not be taken into account under this 
     section.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Eligible contractor.--The term `eligible contractor' 
     means the person who constructed the new energy efficient 
     home, or in the case of a manufactured home which conforms to 
     Federal Manufactured Home Construction and Safety Standards 
     (24 C.F.R. 3280), the manufactured home producer of such 
     home.
       ``(2) Energy efficient property.--The term `energy 
     efficient property' means any energy efficient building 
     envelope component, and any energy efficient heating or 
     cooling appliance.
       ``(3) Qualified new energy efficient home.--The term 
     `qualified new energy efficient home' means a dwelling--
       ``(A) located in the United States,
       ``(B) the construction of which is substantially completed 
     after December 31, 2001,
       ``(C) the original use of which is as a principal residence 
     (within the meaning of section 121) which commences with the 
     person who acquires such dwelling from the eligible 
     contractor, and
       ``(D) which is certified to have a level of annual heating 
     and cooling energy consumption that is at least 30 percent 
     below the annual level of heating and cooling energy 
     consumption of a comparable dwelling constructed in 
     accordance with the standards of the 1998 International 
     Energy Conservation Code.
       ``(4) Construction.--The term `construction' includes 
     reconstruction and rehabilitation.
       ``(5) Acquire.--The term `acquire' includes purchase and, 
     in the case of reconstruction and rehabilitation, such term 
     includes a binding written contract for such reconstruction 
     or rehabilitation.
       ``(6) Building envelope component.--The term `building 
     envelope component' means insulation material or system which 
     is specifically and primarily designed to reduce the heat 
     loss or gain of a dwelling when installed in or on such 
     dwelling, exterior windows (including skylights) and doors, 
     and metal roofs with appropriate pigmented coatings which are 
     specifically and primarily designed to reduce the heat gain 
     of a dwelling when installed in or on such dwelling.
       ``(7) Manufactured home included.--The term `dwelling' 
     includes a manufactured home conforming to Federal 
     Manufactured Home Construction and Safety Standards (24 
     C.F.R. 3280).
       ``(d) Certification.--
       ``(1) Method.--A certification described in subsection 
     (c)(3)(D) shall be determined on the basis of one of the 
     following methods:
       ``(A) The technical specifications or applicable ratings 
     (including product labeling requirements) for the measurement 
     of energy efficiency for the energy efficient building 
     envelope component or energy efficient heating or cooling 
     appliance, based upon energy use or building envelope 
     component performance.
       ``(B) An energy performance measurement method that 
     utilizes computer software approved by organizations 
     designated by the Secretary.
       ``(2) Provider.--Such certification shall be provided by--
       ``(A) in the case of a method described in paragraph 
     (1)(A), a local building regulatory authority, a utility, a 
     manufactured home production inspection primary inspection 
     agency (IPIA), or an accredited home energy rating systems 
     provider who is accredited by, or otherwise authorized to 
     use, approved energy performance measurement methods by the 
     Home Energy Ratings Systems Council or the National 
     Association of State Energy Officials, or
       ``(B) in the case of a method described in paragraph 
     (1)(B), an individual recognized by an organization 
     designated by the Secretary for such purposes.
       ``(3) Form.--Such certification shall be made in writing in 
     a manner that specifies in readily verifiable fashion the 
     energy efficient building envelope components and energy 
     efficient heating or cooling appliances installed and their 
     respective energy efficiency levels, and in the case of a 
     method described in subparagraph (B) of paragraph (1), 
     accompanied by written analysis documenting the proper 
     application of a permissible energy performance measurement 
     method to the specific circumstances of such dwelling.
       ``(4) Regulations.--
       ``(A) In general.--In prescribing regulations under this 
     subsection for energy performance measurement methods, the 
     Secretary shall prescribe procedures for calculating annual 
     energy costs for heating and cooling and cost savings and for 
     the reporting of the results. Such regulations shall--
       ``(i) be based on the National Home Energy Rating Technical 
     Guidelines of the National Association of State Energy 
     Officials, the Home Energy Rating Guidelines of the Home 
     Energy Rating Systems Council, or the modified 1998 
     California Residential ACM manual,
       ``(ii) provide that any calculation procedures be developed 
     such that the same energy efficiency measures allow a home to 
     qualify for the credit under this section regardless of 
     whether the house uses a gas or oil furnace or boiler or an 
     electric heat pump, and
       ``(iii) require that any computer software allow for the 
     printing of the Federal tax forms necessary for the credit 
     under this section and explanations for the homebuyer of the 
     energy efficient features that were used to comply with the 
     requirements of this section.
       ``(B) Providers.--For purposes of paragraph (2)(B), the 
     Secretary shall establish requirements for the designation of 
     individuals based on the requirements for energy consultants 
     and home energy raters specified by the National Association 
     of State Energy Officials.
       ``(e) 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.
       ``(f) Application of Section.--Subsection (a) shall apply 
     to dwellings purchased during the period beginning on January 
     1, 2002, and ending on December 31, 2006.''.
       (b) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38 (relating to current year 
     business credit) is amended by striking ``plus'' at the end 
     of paragraph (15), by striking the period at the end of 
     paragraph (16) and inserting ``, plus'', and by adding at the 
     end thereof the following new paragraph:
       ``(17) the new energy efficient home credit determined 
     under section 45H.''.
       (c) Denial of Double Benefit.--Section 280C (relating to 
     certain expenses for which credits are allowable) is amended 
     by adding at the end thereof the following new subsection:
       ``(d) New Energy Efficient Home Expenses.--No deduction 
     shall be allowed for that portion of expenses for a new 
     energy efficient home otherwise allowable as a deduction for 
     the taxable year which is equal to the amount of the credit 
     determined for such taxable year under section 45H.''.
       (d) Limitation on Carryback.--Subsection (d) of section 39 
     is amended by adding at the end the following new paragraph:
       ``(12) No carryback of new energy efficient home credit 
     before effective date.--No portion of the unused business 
     credit for any taxable year which is attributable to the 
     credit determined under section 45H may be carried back to 
     any taxable year ending before January 1, 2002.''.
       (e) Deduction for Certain Unused Business Credits.--
     Subsection (c) of section 196 is amended by striking ``and'' 
     at the end of paragraph (9), by striking the period at the 
     end of paragraph (10) and inserting ``, and'', and by adding 
     after paragraph (10) the following new paragraph:
       ``(11) the new energy efficient home credit determined 
     under section 45H.''.
       (f) Clerical Amendment.--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 45G the 
     following new item:


[[Page H5084]]


``Sec. 45H. New energy efficient home credit.''.

       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2001.

     SEC. 3110. ALLOWANCE OF DEDUCTION FOR ENERGY EFFICIENT 
                   COMMERCIAL BUILDING PROPERTY.

       (a) In General.--Part VI of subchapter B of chapter 1 
     (relating to itemized deductions for individuals and 
     corporations) is amended by inserting after section 179A the 
     following new section:

     ``SEC. 179B. DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL 
                   BUILDING PROPERTY.

       ``(a) Allowance of Deduction.--
       ``(1) In general.--There shall be allowed as a deduction an 
     amount equal to energy efficient commercial building property 
     expenditures made by a taxpayer for the taxable year.
       ``(2) Maximum amount of deduction.--The amount of energy 
     efficient commercial building property expenditures taken 
     into account under paragraph (1) shall not exceed an amount 
     equal to the product of--
       ``(A) $2.25, and
       ``(B) the square footage of the building with respect to 
     which the expenditures are made.
       ``(3) Year deduction allowed.--The deduction under 
     paragraph (1) shall be allowed for the taxable year in which 
     the building is placed in service.
       ``(b) Energy Efficient Commercial Building Property 
     Expenditures.--For purposes of this section, the term `energy 
     efficient commercial building property expenditures' means an 
     amount paid or incurred for energy efficient commercial 
     building property installed on or in connection with new 
     construction or reconstruction of property--
       ``(1) for which depreciation is allowable under section 
     167,
       ``(2) which is located in the United States, and
       ``(3) the construction or erection of which is completed by 
     the taxpayer.
     Such property includes all residential rental property, 
     including low-rise multifamily structures and single family 
     housing property which is not within the scope of Standard 
     90.1-1999 (described in subsection (c)). Such term includes 
     expenditures for labor costs properly allocable to the onsite 
     preparation, assembly, or original installation of the 
     property.
       ``(c) Energy Efficient Commercial Building Property.--For 
     purposes of subsection (b)--
       ``(1) In general.--The term `energy efficient commercial 
     building property' means any property which reduces total 
     annual energy and power costs with respect to the lighting, 
     heating, cooling, ventilation, and hot water supply systems 
     of the building by 50 percent or more in comparison to a 
     reference building which meets the requirements of Standard 
     90.1-1999 of the American Society of Heating, Refrigerating, 
     and Air Conditioning Engineers and the Illuminating 
     Engineering Society of North America using methods of 
     calculation under paragraph (2) and certified by qualified 
     professionals as provided under subsection (f).
       ``(2) Methods of calculation.--The Secretary, in 
     consultation with the Secretary of Energy, shall promulgate 
     regulations which describe in detail methods for calculating 
     and verifying energy and power consumption and cost, taking 
     into consideration the provisions of the 1998 California 
     Nonresidential ACM Manual. These procedures shall meet the 
     following requirements:
       ``(A) In calculating tradeoffs and energy performance, the 
     regulations shall prescribe the costs per unit of energy and 
     power, such as kilowatt hour, kilowatt, gallon of fuel oil, 
     and cubic foot or Btu of natural gas, which may be dependent 
     on time of usage.
       ``(B) The calculational methodology shall require that 
     compliance be demonstrated for a whole building. If some 
     systems of the building, such as lighting, are designed later 
     than other systems of the building, the method shall provide 
     that either--
       ``(i) the expenses taken into account under subsection (a) 
     shall not occur until the date designs for all energy-using 
     systems of the building are completed,
       ``(ii) the energy performance of all systems and components 
     not yet designed shall be assumed to comply minimally with 
     the requirements of such Standard 90.1-1999, or
       ``(iii) the expenses taken into account under subsection 
     (a) shall be a fraction of such expenses based on the 
     performance of less than all energy-using systems in 
     accordance with subparagraph (C).
       ``(C) The expenditures in connection with the design of 
     subsystems in the building, such as the envelope, the 
     heating, ventilation, air conditioning and water heating 
     system, and the lighting system shall be allocated to the 
     appropriate building subsystem based on system-specific 
     energy cost savings targets in regulations promulgated by the 
     Secretary of Energy which are equivalent, using the 
     calculation methodology, to the whole building requirement of 
     50 percent savings.
       ``(D) The calculational methods under this subparagraph 
     need not comply fully with section 11 of such Standard 90.1-
     1999.
       ``(E) The calculational methods shall be fuel neutral, such 
     that the same energy efficiency features shall qualify a 
     building for the deduction under this subsection regardless 
     of whether the heating source is a gas or oil furnace or an 
     electric heat pump.
       ``(F) The calculational methods shall provide appropriate 
     calculated energy savings for design methods and technologies 
     not otherwise credited in either such Standard 90.1-1999 or 
     in the 1998 California Nonresidential ACM Manual, including 
     the following:
       ``(i) Natural ventilation.
       ``(ii) Evaporative cooling.
       ``(iii) Automatic lighting controls such as occupancy 
     sensors, photocells, and timeclocks.
       ``(iv) Daylighting.
       ``(v) Designs utilizing semi-conditioned spaces that 
     maintain adequate comfort conditions without air conditioning 
     or without heating.
       ``(vi) Improved fan system efficiency, including reductions 
     in static pressure.
       ``(vii) Advanced unloading mechanisms for mechanical 
     cooling, such as multiple or variable speed compressors.
       ``(viii) The calculational methods may take into account 
     the extent of commissioning in the building, and allow the 
     taxpayer to take into account measured performance that 
     exceeds typical performance.
       ``(3) Computer software.--
       ``(A) In general.--Any calculation under this subsection 
     shall be prepared by qualified computer software.
       ``(B) Qualified computer software.--For purposes of this 
     paragraph, the term `qualified computer software' means 
     software--
       ``(i) for which the software designer has certified that 
     the software meets all procedures and detailed methods for 
     calculating energy and power consumption and costs as 
     required by the Secretary,
       ``(ii) which provides such forms as required to be filed by 
     the Secretary in connection with energy efficiency of 
     property and the deduction allowed under this section, and
       ``(iii) which provides a notice form which summarizes the 
     energy efficiency features of the building and its projected 
     annual energy costs.
       ``(d) Allocation of Deduction for Public Property.--In the 
     case of energy efficient commercial building property 
     installed on or in public property, the Secretary shall 
     promulgate a regulation to allow the allocation of the 
     deduction to the person primarily responsible for designing 
     the property in lieu of the public entity which is the owner 
     of such property. Such person shall be treated as the 
     taxpayer for purposes of this section.
       ``(e) Notice to Owner.--The qualified individual shall 
     provide an explanation to the owner of the building regarding 
     the energy efficiency features of the building and its 
     projected annual energy costs as provided in the notice under 
     subsection (c)(3)(B)(iii).
       ``(f) Certification.--The Secretary, in consultation with 
     the Secretary of Energy, shall establish requirements for 
     certification and compliance procedures similar to the 
     procedures under section 45H(d).
       ``(g) Basis Reduction.--For purposes of this title, the 
     basis of any property shall be reduced by the amount of the 
     deduction with respect to such property which is allowed by 
     subsection (a).
       ``(h) Termination.--This section shall not apply to 
     property placed in service after December 31, 2006.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) 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 inserting the 
     following new paragraph:
       ``(33) to the extent provided in section 179B(g).''.
       (2) Section 1245(a) is amended by inserting ``179B,'' after 
     ``179A,'' both places it appears in paragraphs (2)(C) and 
     (3)(C).
       (3) Section 1250(b)(3) is amended by inserting before the 
     period at the end of the first sentence ``or by section 
     179B''.
       (4) Section 263(a)(1) is amended by striking ``or'' at the 
     end of subparagraph (G), by striking the period at the end of 
     subparagraph (H) and inserting ``, or'', and by inserting 
     after subparagraph (H) the following new subparagraph:
       ``(I) expenditures for which a deduction is allowed under 
     section 179B.''.
       (5) Section 312(k)(3)(B) is amended by striking ``or 179A'' 
     each place it appears in the heading and text and inserting 
     ``, 179A, or 179B''.
       (c) Clerical Amendment.--The table of sections for part VI 
     of subchapter B of chapter 1 is amended by adding after 
     section 179A the following new item:

``Sec. 179B. Deduction for energy efficient commercial building 
              property.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3111. ALLOWANCE OF DEDUCTION FOR QUALIFIED ENERGY 
                   MANAGEMENT DEVICES AND RETROFITTED QUALIFIED 
                   METERS.

       (a) In General.--Part VI of subchapter B of chapter 1 
     (relating to itemized deductions for individuals and 
     corporations) is amended by inserting after section 179B the 
     following new section:

     ``SEC. 179C. DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT 
                   DEVICES AND RETROFITTED METERS.

       ``(a) Allowance of Deduction.--In the case of a taxpayer 
     who is a supplier of electric energy or natural gas or a 
     provider of electric energy or natural gas services, there 
     shall be allowed as a deduction an amount equal to the cost 
     of each qualified energy management device placed in service 
     during the taxable year.

[[Page H5085]]

       ``(b) Maximum Deduction.--The deduction allowed by this 
     section with respect to each qualified energy management 
     device shall not exceed $30.
       ``(c) Qualified Energy Management Device.--The term 
     `qualified energy management device' means any tangible 
     property to which section 168 applies if such property is a 
     meter or metering device--
       ``(1) which is acquired and used by the taxpayer to enable 
     consumers to manage their purchase or use of electricity or 
     natural gas in response to energy price and usage signals, 
     and
       ``(2) which permits reading of energy price and usage 
     signals on at least a daily basis.
       ``(d) Property Used Outside the United States Not 
     Qualified.--No deduction shall be allowed under subsection 
     (a) with respect to property which is used predominantly 
     outside the United States or with respect to the portion of 
     the cost of any property taken into account under section 
     179.
       ``(e) Basis Reduction.--
       ``(1) In general.--For purposes of this title, the basis of 
     any property shall be reduced by the amount of the deduction 
     with respect to such property which is allowed by subsection 
     (a).
       ``(2) Ordinary income recapture.--For purposes of section 
     1245, the amount of the deduction allowable under subsection 
     (a) with respect to any property that is of a character 
     subject to the allowance for depreciation shall be treated as 
     a deduction allowed for depreciation under section 167.''.
       (b) Conforming Amendments.--
       (1) Section 263(a)(1) is amended by striking ``or'' at the 
     end of subparagraph (H), by striking the period at the end of 
     subparagraph (I) and inserting ``, or'', and by inserting 
     after subparagraph (I) the following new subparagraph:
       ``(J) expenditures for which a deduction is allowed under 
     section 179C.''.
       (2) Section 312(k)(3)(B) is amended by striking ``or 179B'' 
     each place it appears in the heading and text and inserting 
     ``, 179B, or 179C''.
       (3) Section 1016(a) 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 inserting 
     after paragraph (33) the following new paragraph:
       ``(34) to the extent provided in section 179C(e)(1).''.
       (4) Section 1245(a) is amended by inserting ``179C,'' after 
     ``179B,'' both places it appears in paragraphs (2)(C) and 
     (3)(C).
       (5) The table of contents for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 179B the following new item:

``Sec. 179C. Deduction for qualified energy management devices and 
              retrofitted meters.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to qualified energy management devices placed in 
     service after the date of the enactment of this Act.

     SEC. 3112. 3-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION 
                   OF QUALIFIED ENERGY MANAGEMENT DEVICES.

       (a) In General.--Subparagraph (A) of section 168(e)(3) 
     (relating to classification of property) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iv) any qualified energy management device.''.
       (b) Definition of Qualified Energy Management Device.--
     Section 168(i) (relating to definitions and special rules) is 
     amended by inserting at the end the following new paragraph:
       ``(15) Qualified energy management device.--The term 
     `qualified energy management device' means any qualified 
     energy management device as defined in section 179C(c) which 
     is placed in service by a taxpayer who is a supplier of 
     electric energy or natural gas or a provider of electric 
     energy or natural gas services.''.
       (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.

     SEC. 3113. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
                   PROPERTY.

       (a) In General.--Subparagraph (A) of section 48(a)(3) 
     (defining energy property) is amended by striking ``or'' at 
     the end of clause (ii), by adding ``or'' at the end of clause 
     (iii), and by inserting after clause (iii) the following new 
     clause:
       ``(iv) combined heat and power system property,''.
       (b) Combined Heat and Power System Property.--Subsection 
     (a) of section 48 is amended by redesignating paragraphs (5) 
     and (6) as paragraphs (6) and (7), respectively, and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Combined heat and power system property.--For 
     purposes of this subsection--
       ``(A) Combined heat and power system property.--The term 
     `combined heat and power system property' means property 
     comprising a system--
       ``(i) which uses the same energy source for the 
     simultaneous or sequential generation of electrical power, 
     mechanical shaft power, or both, in combination with the 
     generation of steam or other forms of useful thermal energy 
     (including heating and cooling applications),
       ``(ii) which has an electrical capacity of more than 50 
     kilowatts or a mechanical energy capacity of more than 67 
     horsepower or an equivalent combination of electrical and 
     mechanical energy capacities,
       ``(iii) which produces--

       ``(I) at least 20 percent of its total useful energy in the 
     form of thermal energy, and
       ``(II) at least 20 percent of its total useful energy in 
     the form of electrical or mechanical power (or combination 
     thereof),

       ``(iv) the energy efficiency percentage of which exceeds 60 
     percent (70 percent in the case of a system with an 
     electrical capacity in excess of 50 megawatts or a mechanical 
     energy capacity in excess of 67,000 horsepower, or an 
     equivalent combination of electrical and mechanical energy 
     capacities), and
       ``(v) which is placed in service after December 31, 2001, 
     and before January 1, 2007.
       ``(B) Special rules.--
       ``(i) Energy efficiency percentage.--For purposes of 
     subparagraph (A)(iv), the energy efficiency percentage of a 
     system is the fraction--

       ``(I) the numerator of which is the total useful 
     electrical, thermal, and mechanical power produced by the 
     system at normal operating rates, and
       ``(II) the denominator of which is the lower heating value 
     of the primary fuel source for the system.

       ``(ii) Determinations made on btu basis.--The energy 
     efficiency percentage and the percentages under subparagraph 
     (A)(iii) shall be determined on a Btu basis.
       ``(iii) Input and output property not included.--The term 
     `combined heat and power system property' does not include 
     property used to transport the energy source to the facility 
     or to distribute energy produced by the facility.
       ``(iv) Public utility property.--

       ``(I) Accounting rule for public utility property.--If the 
     combined heat and power system property is public utility 
     property (as defined in section 168(i)(1)), the taxpayer may 
     only claim the credit under the subsection if, with respect 
     to such property, the taxpayer uses a normalization method of 
     accounting.
       ``(II) Certain exception not to apply.--The matter in 
     paragraph (3) which follows subparagraph (D) shall not apply 
     to combined heat and power system property.

       ``(C) Extension of depreciation recovery period.--If a 
     taxpayer is allowed credit under this section for combined 
     heat and power system property and such property would (but 
     for this subparagraph) have a class life of 15 years or less 
     under section 168, such property shall be treated as having a 
     22-year class life for purposes of section 168.''.
       (c) No Carryback of Energy Credit Before Effective Date.--
     Subsection (d) of section 39 is amended by adding at the end 
     the following new paragraph:
       ``(13) No carryback of energy credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the energy credit with 
     respect to property described in section 48(a)(5) may be 
     carried back to a taxable year ending before January 1, 
     2002.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001.

     SEC. 3114. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST 
                   REGULAR AND MINIMUM TAXES.

       (a) In General.--Paragraph (1) of section 26(a) is amended 
     by striking ``and 25B'' and inserting ``25B, 25C, 25D, and 
     25E''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) is amended by striking ``and 25B'' 
     and inserting ``, 25B, 25C, 25D, and 25E''.
       (2) Section 25(e)(1)(C) is amended by inserting ``25C, 25D, 
     and 25E'' after ``25B,''.
       (3) Section 25B(g)(2) is amended by striking ``section 23'' 
     and inserting ``sections 23, 25C, 25D, and 25E''.
       (4) Section 904(h) is amended by striking ``and 25B'' and 
     inserting ``25B, 25C, 25D, and 25E''.
       (5) Section 1400C(d) is amended by striking ``and 25B'' and 
     inserting ``25B, 25C, 25D, and 25E''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3115. PHASEOUT OF 4.3-CENT MOTOR FUEL EXCISE TAXES ON 
                   RAILROADS AND INLAND WATERWAY TRANSPORTATION 
                   WHICH REMAIN IN GENERAL FUND.

       (a) Taxes on Trains.--
       (1) In general.--Clause (ii) of section 4041(a)(1)(C) is 
     amended by striking subclauses (I), (II), and (III) and 
     inserting the following new subclauses:

       ``(I) 3.3 cents per gallon after September 30, 2001, and 
     before January 1, 2005,
       ``(II) 2.3 cents per gallon after December 31, 2004, and 
     before January 1, 2007,
       ``(III) 1.3 cents per gallon after December 31, 2006, and 
     before January 1, 2009,
       ``(IV) 0.3 cent per gallon after December 31, 2008, and 
     before January 1, 2010, and
       ``(V) 0 after December 31, 2009.''.

       (2) Conforming amendments.--
       (A) Subsection (d) of section 4041 is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Diesel fuel used in trains.--In the case of any sale 
     for use (or use) after September 30, 2010, there is hereby 
     imposed a tax of 0.1 cent per gallon on any liquid other than 
     gasoline (as defined in section 4083)--
       ``(A) sold by any person to an owner, lessee, or other 
     operator of a diesel-powered train for use as a fuel in such 
     train, or

[[Page H5086]]

       ``(B) used by any person as a fuel in a diesel-powered 
     train unless there was a taxable sale of such fuel under 
     subparagraph (A).

     No tax shall be imposed by this paragraph on the sale or use 
     of any liquid if tax was imposed on such liquid under section 
     4081.''
       (B) Subsection (f) of section 4082 is amended by striking 
     ``section 4041(a)(1)'' and inserting ``subsections (a)(1) and 
     (d)(3) of section 4041''.
       (C) Subparagraph (B) of section 6421(f)(3) is amended to 
     read as follows:
       ``(B) so much of the rate specified in section 
     4081(a)(2)(A) as does not exceed the rate applicable under 
     section 4041(a)(1)(C)(ii).''.
       (D) Subparagraph (B) of section 6427(l)(3) is amended to 
     read as follows:
       ``(B) so much of the rate specified in section 
     4081(a)(2)(A) as does not exceed the rate applicable under 
     section 4041(a)(1)(C)(ii).''.
       (b) Fuel Used on Inland Waterways.--Subparagraph (C) of 
     section 4042(b)(2) is amended to read as follows:
       ``(C) The deficit reduction rate is--
       ``(i) 3.3 cents per gallon after September 30, 2001, and 
     before January 1, 2005,
       ``(ii) 2.3 cents per gallon after December 31, 2004, and 
     before January 1, 2007,
       ``(iii) 1.3 cents per gallon after December 31, 2006, and 
     before January 1, 2009,
       ``(iv) 0.3 cent per gallon after December 31, 2008, and 
     before January 1, 2010, and
       ``(v) 0 after December 31, 2009.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2001.

     SEC. 3116. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES 
                   OF DIESEL FUEL.

       (a) In General.--Clause (iii) of section 4081(a)(2)(A) is 
     amended by inserting before the period ``(19.7 cents per 
     gallon in the case of a diesel-water fuel emulsion at least 
     14 percent of which is water)''.
       (b) Refunds for Tax-Paid Purchases.--
       (1) In general.--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)(A) 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 the parenthetical in section 4081(a)(2)(A).
       ``(B) Incentive tax rate.--The term `incentive tax rate' 
     means the aggregate rate of tax imposed by section 4081 
     determined with regard to the parenthetical in section 
     4081(a)(2)(A).''
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2001.

     SEC. 3117. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN 
                   COAL TECHNOLOGY.

       (a) Allowance of Qualifying Advanced Clean Coal Technology 
     Facility Credit.--Section 46 (relating to amount of credit) 
     is amended by striking ``and'' at the end of paragraph (2), 
     by striking the period at the end of paragraph (3) and 
     inserting ``, and'', and by adding at the end the following:
       ``(4) the qualifying advanced clean coal technology 
     facility credit.''.
       (b) Amount of Qualifying Advanced Clean Coal Technology 
     Facility Credit.--Subpart E of part IV of subchapter A of 
     chapter 1 (relating to rules for computing investment credit) 
     is amended by inserting after section 48 the following:

     ``SEC. 48A. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY 
                   FACILITY CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     qualifying advanced clean coal technology facility credit for 
     any taxable year is an amount equal to 10 percent of the 
     qualified investment in a qualifying advanced clean coal 
     technology facility for such taxable year.
       ``(b) Qualifying Advanced Clean Coal Technology Facility.--
       ``(1) In general.--For purposes of subsection (a), the term 
     `qualifying advanced clean coal technology facility' means a 
     facility of the taxpayer which--
       ``(A)(i)(I) original use of which commences with the 
     taxpayer, or
       ``(II) is a retrofitted or repowered conventional 
     technology facility, the retrofitting or repowering of which 
     is completed by the taxpayer (but only with respect to that 
     portion of the basis which is properly attributable to such 
     retrofitting or repowering), or
       ``(ii) is acquired through purchase (as defined by section 
     179(d)(2)),
       ``(B) is depreciable under section 167,
       ``(C) has a useful life of not less than 4 years,
       ``(D) is located in the United States, and
       ``(E) uses qualifying advanced clean coal technology.
       ``(2) Special rule for sale-leasebacks.--For purposes of 
     subparagraph (A) of paragraph (1), in the case of a facility 
     which--
       ``(A) is originally placed in service by a person, and
       ``(B) is sold and leased back by such person, or is leased 
     to such person, within 3 months after the date such facility 
     was originally placed in service, for a period of not less 
     than 12 years,
     such facility shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback (or lease) referred to in 
     subparagraph (B). The preceding sentence shall not apply to 
     any property if the lessee and lessor of such property make 
     an election under this sentence. Such an election, once made, 
     may be revoked only with the consent of the Secretary.
       ``(c) Qualifying Advanced Clean Coal Technology.--For 
     purposes of this section--
       ``(1) In general.--The term `qualifying advanced clean coal 
     technology' means, with respect to clean coal technology--
       ``(A) which has--
       ``(i) multiple applications, with a combined capacity of 
     not more than 5,000 megawatts (4,000 megawatts before 2009), 
     of advanced pulverized coal or atmospheric fluidized bed 
     combustion technology--

       ``(I) installed as a new, retrofit, or repowering 
     application,
       ``(II) operated between 2000 and 2012, and
       ``(III) having a design net heat rate of not more than 
     9,500 Btu per kilowatt hour when the design coal has a heat 
     content of more than 9,000 Btu per pound, or a design net 
     heat rate of not more than 9,900 Btu per kilowatt hour when 
     the design coal has a heat content of 9,000 Btu per pound or 
     less,

       ``(ii) multiple applications, with a combined capacity of 
     not more than 1,000 megawatts (500 megawatts before 2009 and 
     750 megawatts before 2013), of pressurized fluidized bed 
     combustion technology--

       ``(I) installed as a new, retrofit, or repowering 
     application,
       ``(II) operated between 2000 and 2016, and
       ``(III) having a design net heat rate of not more than 
     8,400 Btu per kilowatt hour when the design coal has a heat 
     content of more than 9,000 Btu per pound, or a design net 
     heat rate of not more than 9,900 Btu's per kilowatt hour when 
     the design coal has a heat content of 9,000 Btu per pound or 
     less, and

       ``(iii) multiple applications, with a combined capacity of 
     not more than 2,000 megawatts (1,000 megawatts before 2009 
     and 1,500 megawatts before 2013), of integrated gasification 
     combined cycle technology, with or without fuel or chemical 
     co-production--

       ``(I) installed as a new, retrofit, or repowering 
     application,
       ``(II) operated between 2000 and 2016,
       ``(III) having a design net heat rate of not more than 
     8,550 Btu per kilowatt hour when the design coal has a heat 
     content of more than 9,000 Btu per pound, or a design net 
     heat rate of not more than 9,900 Btu per kilowatt hour when 
     the design coal has a heat content of 9,000 Btu per pound or 
     less, and
       ``(IV) having a net thermal efficiency on any fuel or 
     chemical co-production of not less than 39 percent (higher 
     heating value), or

       ``(iv) multiple applications, with a combined capacity of 
     not more than 2,000 megawatts (1,000 megawatts before 2009 
     and 1,500 megawatts before 2013) of technology for the 
     production of electricity--

       ``(I) installed as a new, retrofit, or repowering 
     application,
       ``(II) operated between 2000 and 2016, and
       ``(III) having a carbon emission rate which is not more 
     than 85 percent of conventional technology, and

       ``(B) which reduces the discharge into the atmosphere of 1 
     or more of the following pollutants to not more than--
       ``(i) 5 percent of the potential combustion concentration 
     sulfur dioxide emissions for a coal with a potential 
     combustion concentration sulfur emission of 1.2 lb/million 
     btu of heat input or greater,
       ``(ii) 15 percent of the potential combustion concentration 
     sulfur dioxide emissions for a coal with a potential 
     combustion concentration sulfur emission of less than 1.2 lb/
     million btu of heat input,
       ``(iii) nitrogen oxide emissions of 0.1 lb per million btu 
     of heat input from other than cyclone-fired boilers,
       ``(iv) 15 percent of the uncontrolled nitrogen oxide 
     emissions from cyclone-fired boilers,
       ``(v) particulate emissions of 0.02 lb per million btu of 
     heat input, and
       ``(vi) the emission levels specified in the new source 
     performance standards of the Clean Air Act (42 U.S.C. 7411) 
     in effect at the time of retrofitting, repowering, or 
     replacement of the qualifying clean coal technology unit for 
     the category of source if such level is lower than the levels 
     specified in clause (i), (ii), (iii), (iv), or (v).
       ``(2) Exceptions.--Such term shall not include any projects 
     receiving or scheduled to receive funding under the Clean 
     Coal Technology Program, or the Power Plant Improvement 
     administered by the Secretary of the Department of Energy.
       ``(d) Clean Coal Technology.--For purposes of this section, 
     the term `clean coal technology' means advanced technology 
     which uses coal to produce 75 percent or more of its thermal 
     output as electricity including advanced pulverized coal or 
     atmospheric fluidized bed combustion, pressurized fluidized 
     bed combustion, integrated gasification combined cycle with 
     or without fuel or chemical co-production, and any other 
     technology for the production of electricity which exceeds 
     the performance of conventional technology.

[[Page H5087]]

       ``(e) Conventional Technology.--The term `conventional 
     technology' means--
       ``(1) coal-fired combustion technology with a design net 
     heat rate of not less than 9,500 Btu per kilowatt hour (HHV) 
     and a carbon equivalents emission rate of not more than 0.54 
     pounds of carbon per kilowatt hour when the design coal has a 
     heat content of more than 9,000 Btu per pound,
       ``(2) coal-fired combustion technology with a design net 
     heat rate of not less than 10,500 Btu per kilowatt hour (HHV) 
     and a carbon equivalents emission rate of not more than 0.60 
     pounds of carbon per kilowatt hour when the design coal has a 
     heat content of 9,000 Btu per pound or less, or
       ``(3) natural gas-fired combustion technology with a design 
     net heat rate of not less than 7,500 Btu per kilowatt hour 
     (HHV) and a carbon equivalents emission rate of not more than 
     0.24 pounds of carbon per kilowatt hour.
       ``(f) Design Net Heat Rate.--The design net heat rate shall 
     be based on the design annual heat input to and the design 
     annual net electrical output from the qualifying advanced 
     clean coal technology (determined without regard to such 
     technology's co-generation of steam).
       ``(g) Selection Criteria.--Selection criteria for 
     qualifying advanced clean coal technology facilities--
       ``(1) shall be established by the Secretary of Energy as 
     part of a competitive solicitation,
       ``(2) shall include primary criteria of minimum design net 
     heat rate, maximum design thermal efficiency, environmental 
     performance, and lowest cost to the government, and
       ``(3) shall include supplemental criteria as determined 
     appropriate by the Secretary of Energy.
       ``(h) Qualified Investment.--For purposes of subsection 
     (a), the term `qualified investment' means, with respect to 
     any taxable year, the basis of a qualifying advanced clean 
     coal technology facility placed in service by the taxpayer 
     during such taxable year.
       ``(i) Qualified Progress Expenditures.--
       ``(1) Increase in qualified investment.--In the case of a 
     taxpayer who has made an election under paragraph (5), the 
     amount of the qualified investment of such taxpayer for the 
     taxable year (determined under subsection (c) without regard 
     to this section) shall be increased by an amount equal to the 
     aggregate of each qualified progress expenditure for the 
     taxable year with respect to progress expenditure property.
       ``(2) Progress expenditure property defined.--For purposes 
     of this subsection, the term `progress expenditure property' 
     means any property being constructed by or for the taxpayer 
     and which it is reasonable to believe will qualify as a 
     qualifying advanced clean coal technology facility which is 
     being constructed by or for the taxpayer when it is placed in 
     service.
       ``(3) Qualified progress expenditures defined.--For 
     purposes of this subsection--
       ``(A) Self-constructed property.--In the case of any self-
     constructed property, the term `qualified progress 
     expenditures' means the amount which, for purposes of this 
     subpart, is properly chargeable (during such taxable year) to 
     capital account with respect to such property.
       ``(B) Nonself-constructed property.--In the case of 
     nonself-constructed property, the term `qualified progress 
     expenditures' means the amount paid during the taxable year 
     to another person for the construction of such property.
       ``(4) Other definitions.--For purposes of this subsection--
       ``(A) Self-constructed property.--The term `self-
     constructed property' means property for which it is 
     reasonable to believe that more than half of the construction 
     expenditures will be made directly by the taxpayer.
       ``(B) Nonself-constructed property.--The term `nonself-
     constructed property' means property which is not self-
     constructed property.
       ``(C) Construction, etc.--The term `construction' includes 
     reconstruction and erection, and the term `constructed' 
     includes reconstructed and erected.
       ``(D) Only construction of qualifying advanced clean coal 
     technology facility to be taken into account.--Construction 
     shall be taken into account only if, for purposes of this 
     subpart, expenditures therefor are properly chargeable to 
     capital account with respect to the property.
       ``(5) Election.--An election under this subsection may be 
     made at such time and in such manner as the Secretary may by 
     regulations prescribe. Such an election shall apply to the 
     taxable year for which made and to all subsequent taxable 
     years. Such an election, once made, may not be revoked except 
     with the consent of the Secretary.
       ``(j) Coordination With Other Credits.--This section shall 
     not apply to any property with respect to which the 
     rehabilitation credit under section 47 or the energy credit 
     under section 48 is allowed unless the taxpayer elects to 
     waive the application of such credit to such property.
       ``(k) Termination.--This section shall not apply with 
     respect to any qualified investment made after December 31, 
     2011.
       ``(l) National Limitation.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the term `qualifying advanced clean coal 
     technology facility' shall include such a facility only to 
     the extent that such facility is allocated a portion of the 
     national megawatt limitation under this subsection.
       ``(2) National megawatt limitation.--The national megawatt 
     limitation under this subsection is 7,500 megawatts.
       ``(3) Allocation of limitation.--The national megawatt 
     limitation shall be allocated by the Secretary under rules 
     prescribed by the Secretary. Not later than 6 months after 
     the date of enactment of this subsection, the Secretary shall 
     prescribe such regulations as may be necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations--
       ``(A) to limit which facility qualifies as `qualified 
     advanced clean coal technology' in subsection (c) to 
     particular facilities, a portion of particular facilities, or 
     a portion of the production from particular facilities, so 
     that when all such facilities (or portions thereof) are 
     placed in service over the ten year period in section (k), 
     the combination of facilities approved for tax credits (and/
     or portions of facilities approved for tax credits) will not 
     exceed a combined capacity of 7,500 megawatts;
       ``(B) to provide a certification process in consultation 
     with the Secretary of Energy under subsection (g) that will 
     approve and allocate the 7,500 megawatts of available tax 
     credits authority--
       ``(i) to encourage that facilities with the highest thermal 
     efficiencies and environmental performance be placed in 
     service as soon as possible;
       ``(ii) to allocate credits to taxpayers that have a 
     definite and credible plan for placing into commercial 
     operation a qualifying advanced clean coal technology 
     facility, including--

       ``(I) a site,
       ``(II) contractual commitments for procurement and 
     construction,
       ``(III) filings for all necessary preconstruction 
     approvals,
       ``(IV) a demonstrated record of having successfully 
     completed comparable projects on a timely basis, and
       ``(V) such other factors that the Secretary shall determine 
     are appropriate;

       ``(iii) to allocate credits to a portion of a facility (or 
     a portion of the production from a facility) if the Secretary 
     determines that such an allocation should maximize the amount 
     of efficient production encouraged with the available tax 
     credits;
       ``(C) to set progress requirements and conditional 
     approvals so that credits for approved projects that become 
     unlikely to meet the necessary conditions that can be 
     reallocated by the Secretary to other projects;
       ``(D) to reallocate credits that are not allocated to 1 
     technology described in clauses (i) through (iv) of 
     subsection (c)(1)(A) because an insufficient number of 
     qualifying facilities requested credits for one technology, 
     to another technology described in another subparagraph of 
     subsection (c) in order to maximize the amount of energy 
     efficient production encouraged with the available tax 
     credits; and
       ``(E) to provide taxpayers with opportunities to correct 
     administrative errors and omissions with respect to 
     allocations and recordkeeping within a reasonable period 
     after their discovery, taking into account the availability 
     of regulations and other administrative guidance from the 
     Secretary.''.
       (c) Recapture.--Section 50(a) (relating to other special 
     rules) is amended by adding at the end the following:
       ``(6) Special rules relating to qualifying advanced clean 
     coal technology facility.--For purposes of applying this 
     subsection in the case of any credit allowable by reason of 
     section 48A, the following shall apply:
       ``(A) General rule.--In lieu of the amount of the increase 
     in tax under paragraph (1), the increase in tax shall be an 
     amount equal to the investment tax credit allowed under 
     section 38 for all prior taxable years with respect to a 
     qualifying advanced clean coal technology facility (as 
     defined by section 48A(b)(1)) multiplied by a fraction whose 
     numerator is the number of years remaining to fully 
     depreciate under this title the qualifying advanced clean 
     coal technology facility disposed of, and whose denominator 
     is the total number of years over which such facility would 
     otherwise have been subject to depreciation. For purposes of 
     the preceding sentence, the year of disposition of the 
     qualifying advanced clean coal technology facility property 
     shall be treated as a year of remaining depreciation.
       ``(B) Property ceases to qualify for progress 
     expenditures.--Rules similar to the rules of paragraph (2) 
     shall apply in the case of qualified progress expenditures 
     for a qualifying advanced clean coal technology facility 
     under section 48A, except that the amount of the increase in 
     tax under subparagraph (A) of this paragraph shall be 
     substituted in lieu of the amount described in such paragraph 
     (2).
       ``(C) Application of paragraph.--This paragraph shall be 
     applied separately with respect to the credit allowed under 
     section 38 regarding a qualifying advanced clean coal 
     technology facility.''.
       (d) Transitional Rule.--Section 39(d) (relating to 
     transitional rules) is amended by adding at the end the 
     following:
       ``(14) No carryback of section 48a credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the qualifying advanced 
     clean coal technology facility credit determined under 
     section 48A may be carried back to a taxable year ending 
     before January 1, 2002.''.

[[Page H5088]]

       (e) Technical Amendments.--
       (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
     the end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, and'', and by adding at the 
     end the following:
       ``(iv) the portion of the basis of any qualifying advanced 
     clean coal technology facility attributable to any qualified 
     investment (as defined by section 48A(c)).''
       (2) Section 50(a)(4) is amended by striking ``and (2)'' and 
     inserting ``, (2), and (6)''.
       (3) Section 50(c) is amended by adding at the end the 
     following new paragraph:
       ``(6) Special rule for qualifying advanced clean coal 
     technology facilities.--Paragraphs (1) and (2) shall not 
     apply to any property with respect to the credit determined 
     under section 48A.''
       (4) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48 the following:

``Sec. 48A. Qualifying advanced clean coal technology facility 
              credit.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2001, 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 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 3118. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED 
                   CLEAN COAL TECHNOLOGY.

       (a) Credit for Production From Qualifying Advanced Clean 
     Coal Technology.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding after section 45J the following:

     ``SEC. 45K. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED 
                   CLEAN COAL TECHNOLOGY.

       ``(a) General Rule.--For purposes of section 38, the 
     qualifying advanced clean coal technology production credit 
     of any taxpayer for any taxable year is equal to--
       ``(1) the applicable amount of advanced clean coal 
     technology production credit, multiplied by
       ``(2) the sum of--
       ``(A) the kilowatt hours of electricity, plus
       ``(B) each 3,413 Btu of fuels or chemicals,
     produced by the taxpayer during such taxable year at a 
     qualifying advanced clean coal technology facility during the 
     10-year period beginning on the date the facility was 
     originally placed in service.
       ``(b) Applicable Amount.--For purposes of this section, the 
     applicable amount of advanced clean coal technology 
     production credit with respect to production from a 
     qualifying advanced clean coal technology facility shall be 
     determined as follows:
       ``(1) Where the design coal has a heat content of more than 
     9,000 Btu per pound:
       ``(A) In the case of a facility originally placed in 
     service before 2009, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,400.........         $.0060                $.0038
More than 8,400 but not more         $.0025                $.0010
 than 8,550.
More than 8,550 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

       ``(B) In the case of a facility originally placed in 
     service after 2008 and before 2013, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,770.........         $.0105                $.0090
More than 7,770 but not more         $.0085                $.0068
 than 8,125.
More than 8,125 but not more         $.0075                $.0055.
 than 8,350.
------------------------------------------------------------------------

       ``(C) In the case of a facility originally placed in 
     service after 2012 and before 2017, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,380.........         $.0140                 $.01
More than 7,380 but not more         $.0120                $.0090.
 than 7,720.
------------------------------------------------------------------------

       ``(2) Where the design coal has a heat content of not more 
     than 9,000 Btu per pound:
       ``(A) In the case of a facility originally placed in 
     service before 2009, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,500.........         $.0060                $.0038
More than 8,500 but not more         $.0025                $.0010
 than 8,650.
More than 8,650 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

       ``(B) In the case of a facility originally placed in 
     service after 2008 and before 2013, if--
       

[[Page H5089]]



------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,000.........         $.0105                 $.009
More than 8,000 but not more         $.0085                $.0068
 than 8,250.
More than 8,250 but not more         $.0075                $.0055.
 than 8,400.
------------------------------------------------------------------------

       ``(C) In the case of a facility originally placed in 
     service after 2012 and before 2017, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,800.........         $.0140                $.0115
More than 7,800 but not more         $.0120                $.0090.
 than 7,950.
------------------------------------------------------------------------

       ``(3) Where the clean coal technology facility is producing 
     fuel or chemicals:
       ``(A) In the case of a facility originally placed in 
     service before 2009, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 40.6 percent..         $.0060                $.0038
Less than 40.6 but not less          $.0025                $.0010
 than 40 percent.
Less than 40 but not less            $.0010                $.0010.
 than 39 percent.
------------------------------------------------------------------------

       ``(B) In the case of a facility originally placed in 
     service after 2008 and before 2013, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 43.9 percent..         $.0105                 $.009
Less than 43.9 but not less          $.0085                $.0068
 than 42 percent.
Less than 42 but not less            $.0075                $.0055.
 than 40.9 percent.
------------------------------------------------------------------------

       ``(C) In the case of a facility originally placed in 
     service after 2012 and before 2017, if--
       

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 44.2 percent..         $.0140                $.0115
Less than 44.2 but not less          $.0120                $.0090.
 than 43.6 percent.
------------------------------------------------------------------------

       ``(c) Inflation Adjustment Factor.--For calendar years 
     after 2001, each amount in paragraphs (1), (2), and (3) shall 
     be adjusted by multiplying such amount by the inflation 
     adjustment factor for the calendar year in which the amount 
     is applied. If any amount as increased under the preceding 
     sentence is not a multiple of 0.01 cent, such amount shall be 
     rounded to the nearest multiple of 0.01 cent.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) In general.--Any term used in this section which is 
     also used in section 48A shall have the meaning given such 
     term in section 48A.
       ``(2) Applicable rules.--The rules of paragraphs (3), (4), 
     and (5) of section 45 shall apply.
       ``(3) Inflation adjustment factor.--The term `inflation 
     adjustment factor' means, with respect to a calendar year, a 
     fraction the numerator of which is the GDP implicit price 
     deflator for the preceding calendar year and the denominator 
     of which is the GDP implicit price deflator for the calendar 
     year 2001.
       ``(4) GDP implicit price deflator.--The term `GDP implicit 
     price deflator' means the most recent revision of the 
     implicit price deflator for the gross domestic product as 
     computed by the Department of Commerce before March 15 of the 
     calendar year.''.
       (b) 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 qualifying advanced clean coal technology 
     production credit determined under section 45K(a).''.
       (c) Transitional Rule.--Section 39(d) (relating to 
     transitional rules) is amended by adding after paragraph (14) 
     the following:
       ``(15) No carryback of section 45k credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the qualifying advanced 
     clean coal technology production

[[Page H5090]]

     credit determined under section 45K may be carried back to a 
     taxable year ending before the date of enactment of section 
     45K.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following:

``Sec. 45K. Credit for production from qualifying advanced clean coal 
              technology.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to production after the date of enactment of this 
     Act.

                         TITLE II--RELIABILITY

     SEC. 3201. 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 (i), by 
     redesignating clause (ii) as clause (iii), and by inserting 
     after clause (i) the following new clause:
       ``(ii) any natural gas gathering line, and''.
       (b) Natural Gas Gathering Line.--Subsection (i) of section 
     168 is amended by adding after paragraph (15) the following 
     new paragraph:
       ``(16) 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, or
       ``(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 
     certificated by the Federal Energy Regulatory Commission as 
     an interstate transmission pipeline,
       ``(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)(i) the following:

``(C)(ii).........................................................10''.
       (d) Alternative Minimum Tax Exception.--Subparagraph (B) of 
     section 56(a)(1) is amended by inserting before the period 
     the following: ``or in clause (ii) of section 168(e)(3)(C)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 3202. NATURAL GAS DISTRIBUTION LINES TREATED AS 10-YEAR 
                   PROPERTY.

       (a) In General.--Subparagraph (D) of section 168(e)(3) 
     (relating to classification of certain property) is amended 
     by striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and by inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iii) 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 (D)(ii) the following:

``(D)(iii)........................................................20''.
       (c) Alternative Minimum Tax Exception.--Subparagraph (B) of 
     section 56(a)(1) is amended by inserting before the period 
     the following: ``or in clause (iii) of section 
     168(e)(3)(D)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 3203. PETROLEUM REFINING PROPERTY TREATED AS 7-YEAR 
                   PROPERTY.

       (a) In General.--Subparagraph (C) of section 168(e)(3) 
     (relating to classification of certain property), as amended 
     by section 3201, is amended by striking ``and'' at the end of 
     clause (ii), by redesignating clause (iii) as clause (iv), 
     and by inserting after clause (ii) the following new clause:
       ``(iii) any property used for the distillation, 
     fractionation, and catalytic cracking of crude petroleum into 
     gasoline and its other components, and''.
       (b) Alternative System.--The table contained in section 
     168(g)(3)(B), as amended by section 3201, is amended by 
     inserting after the item relating to subparagraph (C)(ii) the 
     following:

``(C)(iii)........................................................10''.
       (c) Alternative Minimum Tax Exception.--Subparagraph (B) of 
     section 56(a)(1), as amended by section 3201, is amended by 
     inserting ``or (iii)'' after ``clause (ii)''.
       (d) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 3204. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING 
                   WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR 
                   REGULATIONS.

       (a) In General.--Section 179(b) (relating to election to 
     expense certain depreciable business assets) is amended by 
     adding at the end the following new paragraph:
       ``(5) Limitation for small business refiners.--
       ``(A) In general.--In the case of a small business refiner 
     electing to expense qualified costs, in lieu of the dollar 
     limitations in paragraph (1), the limitation on the aggregate 
     costs which may be taken into account under subsection (a) 
     for any taxable year shall not exceed 75 percent of the 
     qualified costs.
       ``(B) Qualified costs.--For purposes of this paragraph, the 
     term `qualified costs' means costs paid or incurred by a 
     small business refiner for the purpose of complying with the 
     Highway Diesel Fuel Sulfur Control Requirements of the 
     Environmental Protection Agency.
       ``(C) Small business refiner.--For purposes of this 
     paragraph, the term `small business refiner' means, with 
     respect to any taxable year, a refiner which, within the 
     refining operations of the business, employs not more than 
     1,500 employees on business days during such taxable year 
     performing services in the refining operations of such 
     businesses and has an average total capacity of 155,000 
     barrels per day or less.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after the date of 
     the enactment of this Act.

     SEC. 3205. ENVIRONMENTAL TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45I. ENVIRONMENTAL TAX CREDIT.

       ``(a) In General.--For purposes of section 38, the amount 
     of the environmental tax credit determined under this section 
     with respect to any small business refiner for any taxable 
     year is an amount equal to 5 cents for every gallon of 15 
     parts per million or less sulfur diesel produced at a 
     facility by such small business refiner.
       ``(b) Maximum Credit.--For any small business refiner, the 
     aggregate amount allowable as a credit under subsection (a) 
     for any taxable year with respect to any facility shall not 
     exceed 25 percent of the qualified capital costs incurred by 
     such small business refiner with respect to such facility not 
     taken into account in determining the credit under subsection 
     (a) for any preceding taxable year.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Small business refiner.--The term `small business 
     refiner' means, with respect to any taxable year, a refiner 
     which, within the refining operations of the business, 
     employs not more than 1,500 employees on business days during 
     such taxable year performing services in the refining 
     operations of such businesses and has an average total 
     capacity of 155,000 barrels per day or less.
       ``(2) Qualified capital costs.--The term `qualified capital 
     costs' means, with respect to any facility, those costs paid 
     or incurred during the applicable period for compliance with 
     the applicable EPA regulations with respect to such facility, 
     including expenditures for the construction of new process 
     operation units or the dismantling and reconstruction of 
     existing process units to be used in the production of 15 
     parts per million or less sulfur diesel fuel, associated 
     adjacent or offsite equipment (including tankage, catalyst, 
     and power supply), engineering, construction period interest, 
     and sitework.
       ``(3) Applicable epa regulations.--The term `applicable EPA 
     regulations' means the Highway Diesel Fuel Sulfur Control 
     Requirements of the Environmental Protection Agency.
       ``(4) Applicable period.--The term `applicable period' 
     means, with respect to any facility, the period beginning on 
     the day after the date of the enactment of this section and 
     ending with the date which is one year after the date on 
     which the taxpayer must comply with the applicable EPA 
     regulations with respect to such facility.
       ``(d) Reduction in Basis.--For purposes of this subtitle, 
     if a credit is determined under this section with respect to 
     any property by reason of qualified capital costs, the basis 
     of such property shall be reduced by the amount of the credit 
     so determined.
       ``(e) Certification.--
       ``(1) Required.--Not later than the date which is 30 months 
     after the first day of the first taxable year in which the 
     environmental tax credit is allowed with respect to a 
     facility, the small business refiner must obtain 
     certification from the Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, that 
     the taxpayer's qualified capital costs with respect to such 
     facility will result in compliance with the applicable EPA 
     regulations.
       ``(2) Contents of application.--An application for 
     certification shall include relevant information regarding 
     unit capacities and operating characteristics sufficient for 
     the Secretary, in consultation with the Administrator of the 
     Environmental Protection Agency, to determine that such 
     qualified capital costs are necessary for compliance with the 
     applicable EPA regulations.
       ``(3) Review period.--Any application shall be reviewed and 
     notice of certification, if applicable, shall be made within 
     60 days of receipt of such application.
       ``(4) Recapture.--Notwithstanding subsection (f), failure 
     to obtain certification under paragraph (1) constitutes a 
     recapture event under subsection (f) with an applicable 
     percentage of 100 percent.
       ``(f) Recapture of Environmental Tax Credit.--
       ``(1) In general.--Except as provided in subsection (e), 
     if, as of the close of any taxable year, there is a recapture 
     event with respect to any facility of the small business 
     refiner, then the tax of such refiner under this chapter for 
     such taxable year shall be increased by an amount equal to 
     the product of--

[[Page H5091]]

       ``(A) the applicable recapture percentage, and
       ``(B) the aggregate decrease in the credits allowed under 
     section 38 for all prior taxable years which would have 
     resulted if the qualified capital costs of the taxpayer 
     described in subsection (c)(2) with respect to such facility 
     had been zero.
       ``(2) Applicable recapture percentage.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable recapture percentage shall be determined from the 
     following table:

                                                         The applicable
                                                              recapture
                                    ``If the recapture evpercentage is:
    Year 1.......................................................100   
    Year 2........................................................80   
    Year 3........................................................60   
    Year 4........................................................40   
    Year 5........................................................20   
    Years 6 and thereafter.........................................0.  
       ``(B) Years.--For purposes of subparagraph (A), year 1 
     shall begin on the first day of the taxable year in which the 
     qualified capital costs with respect to a facility described 
     in subsection (c)(2) are paid or incurred by the taxpayer.
       ``(3) Recapture event defined.--For purposes of this 
     subsection, the term `recapture event' means--
       ``(A) Failure to comply.--The failure by the small business 
     refiner to meet the applicable EPA regulations within the 
     applicable period with respect to the facility.
       ``(B) Cessation of operation.--The cessation of the 
     operation of the facility as a facility which produces 15 
     parts per million or less sulfur diesel after the applicable 
     period.
       ``(C) Change in ownership.--
       ``(i) In general.--Except as provided in clause (ii), the 
     disposition of a small business refiner's interest in the 
     facility with respect to which the credit described in 
     subsection (a) was allowable.
       ``(ii) Agreement to assume recapture liability.--Clause (i) 
     shall not apply if the person acquiring such interest in the 
     facility agrees in writing to assume the recapture liability 
     of the person disposing of such interest in effect 
     immediately before such disposition. In the event of such an 
     assumption, the person acquiring the interest in the facility 
     shall be treated as the taxpayer for purposes of assessing 
     any recapture liability (computed as if there had been no 
     change in ownership).
       ``(4) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under this chapter or for purposes of section 55.
       ``(C) No recapture by reason of casualty loss.--The 
     increase in tax under this subsection shall not apply to a 
     cessation of operation of the facility by reason of a 
     casualty loss to the extent such loss is restored by 
     reconstruction or replacement within a reasonable period 
     established by the Secretary.
       ``(g) Controlled Groups.--For purposes of this section, all 
     persons treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 shall be treated as a single 
     employer.''.
       (b) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38 (relating to general business 
     credit) is amended by striking ``plus'' at the end of 
     paragraph (16), by striking the period at the end of 
     paragraph (17) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(18) in the case of a small business refiner, the 
     environmental tax credit determined under section 45I(a).''.
       (c) Denial of Double Benefit.--Section 280C (relating to 
     certain expenses for which credits are allowable) is amended 
     by adding after subsection (d) the following new subsection:
       ``(e) Environmental Tax Credit.--No deduction shall be 
     allowed for that portion of the expenses otherwise allowable 
     as a deduction for the taxable year which is equal to the 
     amount of the credit determined for the taxable year under 
     section 45I(a).''.
       (d) Basis Adjustment.--Section 1016(a) (relating to 
     adjustments to basis) is amended by striking ``and'' at the 
     end of paragraph (33), by striking the period at the end of 
     paragraph (34) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(35) in the case of a facility with respect to which a 
     credit was allowed under section 45I, to the extent provided 
     in section 45I(d).''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45I. Environmental tax credit.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred after the date of 
     the enactment of this Act.

     SEC. 3206. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL 
                   DEPLETION DEDUCTION.

       (a) In General.--Paragraph (4) of section 613A(d) (relating 
     to certain refiners excluded) is amended to read as follows:
       ``(4) Certain refiners excluded.--If the taxpayer or a 
     related person 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 
     the related person 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 beginning after December 31, 
     2001.

     SEC. 3207. TAX-EXEMPT BOND FINANCING OF CERTAIN ELECTRIC 
                   FACILITIES.

       (a) In General.--Subpart A of part IV of subchapter B of 
     chapter 1 (relating to tax exemption requirements for State 
     and local bonds) is amended by inserting after section 141 
     the following new section:

     ``SEC. 141A. TREATMENT OF GOVERNMENT-OWNED ELECTRIC OUTPUT 
                   FACILITIES.

       ``(a) Exceptions From Private Business Use Limitations 
     Where Open Access Requirements Met.--
       ``(1) General rule.--For purposes of this part, the term 
     `private business use' shall not include--
       ``(A) any permitted open access activity by a governmental 
     unit with respect to an electric output facility owned by 
     such unit, or
       ``(B) any permitted sale of electricity by a governmental 
     unit which is generated at an existing generation facility 
     owned by such unit.
       ``(2) Permitted open access activity.--For purposes of this 
     section--
       ``(A) In general.--The term `permitted open access 
     activity' means any activity meeting the open access 
     requirements of any of the following clauses with respect to 
     such electric output facility:
       ``(i) Transmission and ancillary facility.--In the case of 
     a transmission facility or a facility providing ancillary 
     services, the provision of transmission service and ancillary 
     services meets the open access requirements of this clause 
     only if such services are provided on a nondiscriminatory 
     open access basis--

       ``(I) pursuant to an open access transmission tariff filed 
     with and approved by FERC, including an acceptable 
     reciprocity tariff, or
       ``(II) under a regional transmission organization agreement 
     approved by FERC.

       ``(ii) Distribution facilities.--In the case of a 
     distribution facility, the delivery of electric energy meets 
     the open access requirements of this clause only if such 
     delivery is made on a nondiscriminatory open access basis.
       ``(iii) Generation facilities.--In the case of a generation 
     facility, the delivery of electric energy generated by such 
     facility meets the open access requirements of this clause 
     only if--

       ``(I) such facility is directly connected to distribution 
     facilities owned by the governmental unit which owns the 
     generation facility, and
       ``(II) such distribution facilities meet the open access 
     requirements of clause (ii).

       ``(B) Special rules.--
       ``(i) Voluntarily filed tariffs.--Subparagraph (A)(i)(I) 
     shall apply in the case of a voluntarily filed tariff only if 
     the governmental unit files a report with FERC within 90 days 
     after the date of the enactment of this section relating to 
     whether or not such governmental unit will join a regional 
     transmission organization.
       ``(ii) Control of transmission facilities by regional 
     transmission organization.--A governmental unit shall be 
     treated as meeting the open access requirements of 
     subparagraph (A)(i) if a regional transmission organization 
     controls the transmission facilities.
       ``(iii) ERCOT utility.--References to FERC in subparagraph 
     (A) shall be treated as references to the Public Utility 
     Commission of Texas with respect to any ERCOT utility (as 
     defined in section 212(k)(2)(B) of the Federal Power Act (16 
     U.S.C. 824k(k)(2)(B))).
       ``(3) Permitted sale.--For purposes of this subsection--
       ``(A) In general.--The term `permitted sale' means--
       ``(i) any sale of electricity to an on-system purchaser if 
     the seller meets the open access requirements of paragraph 
     (2) with respect to all distribution and transmission 
     facilities (if any) owned by such seller, and
       ``(ii) subject to subparagraphs (B) and (C), any sale of 
     electricity to a wholesale native load purchaser, and any 
     load loss sale, if--

       ``(I) the seller meets the open access requirements of 
     paragraph (2) with respect to all transmission facilities (if 
     any) owned by such seller, or
       ``(II) in any case in which the seller does not own any 
     transmission facilities, all persons providing transmission 
     services to the seller's wholesale native load purchasers 
     meet the open access requirements of paragraph (2) with 
     respect to all transmission facilities owned by such persons.

       ``(B) Limitation on sales to wholesale native load 
     purchasers.--A sale to a wholesale native load purchaser 
     shall be treated as a permitted sale only to the extent 
     that--
       ``(i) such purchaser resells the electricity directly at 
     retail to persons within the purchaser's distribution area, 
     or
       ``(ii) such electricity is resold by such purchaser through 
     one or more wholesale purchasers (each of whom as of June 30, 
     2000,

[[Page H5092]]

     was a party to a requirements contract or a firm power 
     contract described in paragraph (5)(B)(ii)) to retail 
     purchasers in the ultimate wholesale purchaser's distribution 
     area.
       ``(C) Load loss sales.--
       ``(i) In general.--The term `load loss sale' means any sale 
     at wholesale to the extent that--

       ``(I) the aggregate sales at wholesale during the recovery 
     period does not exceed the load loss mitigation sales limit 
     for such period, and
       ``(II) the aggregate sales at wholesale during the first 
     calendar year after the recovery period does not exceed the 
     excess carried under clause (iv) to such year.

       ``(ii) Load loss mitigation sales limit.--For purposes of 
     clause (i), the load loss mitigation sales limit for the 
     recovery period is the sum of the annual load losses for each 
     year of such period.
       ``(iii) Annual load loss.--A governmental unit's annual 
     load loss for each year of the recovery period is the amount 
     (if any) by which--

       ``(I) the megawatt hours of electric energy sold during 
     such year to wholesale native load purchasers which do not 
     constitute private business use are less than
       ``(III) the megawatt hours of electric energy sold during 
     the base year to wholesale native load purchasers which do 
     not constitute private business use.

     The annual load loss for any year shall not exceed the 
     portion of the amount determined under the preceding sentence 
     which is attributable to open access requirements.
       ``(iv) Carryovers.--If the limitation under clause (i) for 
     the recovery period exceeds the aggregate sales during such 
     period which are taken into account under clause (i), such 
     excess (but not more than 10 percent of such limitation) may 
     be carried over to the first calendar year following the 
     recovery period.
       ``(v) Recovery period.--The recovery period is the 7-year 
     period beginning with the start-up year.
       ``(vi) Start-up year.--The start-up year is the calendar 
     year which includes the date of the enactment of this section 
     or, if later, at the election of the governmental unit--

       ``(I) the first year that the governmental unit offers 
     nondiscriminatory open transmission access, or
       ``(II) the first year in which at least 10 percent of the 
     governmental unit's wholesale customers' aggregate retail 
     native load is open to retail competition.

       ``(4) On-system purchaser.--For purposes of this section, 
     the term `on-system purchaser' means any person whose 
     electric equipment is directly connected with any 
     transmission or distribution facility owned by the 
     governmental unit owning the existing generation facility 
     if--
       ``(A) such person--
       ``(i) purchases electric energy from such governmental unit 
     at retail, and
       ``(ii)(I) was within such unit's distribution area at the 
     close of the base year or
       ``(II) is a person as to whom the governmental unit has a 
     statutory service obligation, or
       ``(B) is a wholesale native load purchaser from such 
     governmental unit.
       ``(5) Wholesale native load purchaser.--For purposes of 
     this section--
       ``(A) In general.--The term `wholesale native load 
     purchaser' means a wholesale purchaser as to whom the 
     governmental unit had--
       ``(i) a statutory service obligation at wholesale at the 
     close of the base year, or
       ``(ii) an obligation at the close of the base year under a 
     requirements or firm sales contract if, as of June 30, 2000, 
     such contract had been in effect for (or had an initial term 
     of) at least 10 years.
       ``(B) Permitted sales under existing contracts.--A private 
     business use sale during any year to a wholesale native load 
     purchaser (other than a person to whom the governmental unit 
     had a statutory service obligation) under a contract shall be 
     treated as a permitted sale by reason of being a load loss 
     sale only to the extent that the private business use sales 
     under the contract during such year exceed the lesser of--
       ``(i) the private business use sales under the contract 
     during the base year, or
       ``(ii) the maximum private business use sales which would 
     (but for this section) be permitted without causing the bonds 
     to be private activity bonds.

     This subparagraph shall only apply to the extent that the 
     sale is allocable to bonds issued before the date of the 
     enactment of this section (or bonds issued to refund such 
     bonds).
       ``(6) Special rules.--
       ``(A) Time of sale rule.--For purposes of paragraphs 
     (3)(C)(iii) and (5)(B), the determination of whether a sale 
     after the date of the enactment of this section is a private 
     business use shall be made with regard to this section.
       ``(B) Joint action agencies.--To the extent provided in 
     regulations, a joint action agency, or a member of (or a 
     wholesale native load purchaser from) a joint action agency, 
     which is entitled to make a sale described in subparagraph 
     (A) or (B) in a year, may transfer the entitlement to make 
     that sale to the member (or purchaser), or the joint action 
     agency, respectively.
       ``(b) Certain Bonds for Transmission and Distribution 
     Facilities Not Tax Exempt.--
       ``(1) In general.--Section 103 shall not apply to any bond 
     issued on or after the date of the enactment of this section 
     if any portion of the proceeds of the issue of which such 
     bond is a part is used (directly or indirectly) to finance--
       ``(A) any electric transmission facility, or
       ``(B) any start-up electric utility distribution facility.
       ``(2) Exceptions relating to transmission facilities.--
     Paragraph (1)(A) shall not apply to any bond issued to 
     finance--
       ``(A) any repair of a transmission facility in service on 
     the date of the enactment of this section, so long as the 
     repair does not--
       ``(i) increase the voltage level of such facility over its 
     level at the close of the base year, or
       ``(ii) increase the thermal load limit of such facility by 
     more than 3 percent over such limit at the close of the base 
     year,
       ``(B) any qualifying upgrade of an electric transmission 
     facility in service on the date of the enactment of this 
     section, or
       ``(C) any transmission facility necessary to comply with an 
     obligation under a shared or reciprocal transmission 
     agreement in effect on such date.
       ``(3) Exception for local electric transmission facility.--
     For purposes of this subsection--
       ``(A) In general.--In the case of a governmental unit which 
     owns distribution facilities, paragraph (1)(A) shall not 
     apply to any bond issued to finance an electric transmission 
     facility owned by such governmental unit and located within 
     such governmental unit's distribution area, but only to the 
     extent such facility is, or will be, necessary to supply 
     electricity to serve the retail native load, or wholesale 
     native load, of such governmental unit or of 1 or more other 
     governmental units owning distribution facilities which are 
     directly connected to such electric transmission facility.
       ``(B) Retail load.--The term `retail load' means, with 
     respect to a governmental unit, the electric load of end-
     users in the distribution area of the governmental unit.
       ``(C) Wholesale native load.--The term `wholesale native 
     load' means--
       ``(i) the retail load of such unit's wholesale native load 
     purchasers (or of an ultimate wholesale purchaser described 
     in subsection (a)(3)(B)(ii)), and
       ``(ii) the electric load of purchasers (not described in 
     clause (i)) under wholesale requirements contracts which--

       ``(I) do not constitute private business use (determined 
     without regard to this section), and
       ``(II) were in effect in the base year.

       ``(D) Necessary to serve load.--For purposes of determining 
     whether a transmission facility is, or will be, necessary to 
     supply electricity to retail native load or wholesale native 
     load--
       ``(i) the governmental unit's available transmission rights 
     shall be taken into account,
       ``(ii) electric reliability standards or requirements of 
     national or regional reliability organizations, regional 
     transmission organizations and the Electric Reliability 
     Council of Texas shall be taken into account, and
       ``(iii) transmission, siting and construction decisions of 
     regional transmission organizations and State and Federal 
     regulatory and siting agencies, after a proceeding that 
     provides for public input, shall be presumptive evidence 
     regarding whether transmission facilities are necessary to 
     serve native load.
       ``(E) Qualifying upgrade.--The term `qualifying upgrade' 
     means an improvement or addition to transmission facilities 
     of the governmental unit in service on the date of the 
     enactment of this section which--
       ``(i) is ordered or approved by a regional transmission 
     organization or by a State regulatory or siting agency, after 
     a proceeding that provides for public input, and
       ``(ii) is, or will be, necessary to supply electricity to 
     serve the retail native load, or wholesale native load, of 
     such governmental unit or of one or more governmental units 
     owning distribution facilities which are directly connected 
     to such transmission facility.
       ``(4) Start-up electric utility distribution facility 
     defined.--For purposes of this subsection, the term `start-up 
     electric utility distribution facility' means any 
     distribution facility to provide electric service for sale to 
     the public if such facility is placed in service--
       ``(A) by a governmental unit that did not operate an 
     electric utility on the date of the enactment of this 
     section, and
       ``(B) during the first 10 years after the date such 
     governmental unit begins operating an electric utility.

     A governmental unit is treated as having operated an electric 
     utility on the date of the enactment of this section if it 
     operates electric output facilities which were (on such date) 
     operated by another governmental unit to provide electric 
     service for sale to the public.
       ``(5) Exception for refunding bonds.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     eligible refunding bond.
       ``(B) Eligible refunding bond.--For purposes of 
     subparagraph (A), the term `eligible refunding bond' means 
     any bond (or series of bonds) issued to refund any bond 
     issued before the date of the enactment of this section if 
     the average maturity date of the issue of which the refunding 
     bond is a part is not later than the average maturity date of 
     the bonds to be refunded by such issue.
       ``(c) Definitions; Special Rules.--For purposes of this 
     section--
       ``(1) Base year.--The term `base year' means--

[[Page H5093]]

       ``(A) the calendar year preceding the start-up year, or
       ``(B) at the election of the governmental unit, the second 
     or third calendar years preceding the start-up year.
       ``(2) Distribution area.--The term `distribution area' 
     means the area in which a governmental unit owns distribution 
     facilities.
       ``(3) Electric output facility.--The term `electric output 
     facility' means an output facility that is an electric 
     generation, transmission, or distribution facility.
       ``(4) Distribution facility.--The term `distribution 
     facility' means an electric output facility that is not a 
     generation or transmission facility.
       ``(5) Transmission facility.--The term `transmission 
     facility' means an electric output facility (other than a 
     generation facility) that operates at an electric voltage of 
     69 kV or greater. To the extent provided in regulations, such 
     term includes any output facility that FERC determines is a 
     transmission facility under standards applied by FERC under 
     the Federal Power Act (as in effect on the date of the 
     enactment of this section).
       ``(6) Existing generation facility.--
       ``(A) In general.--The term `existing generation facility' 
     means any electric generation facility if--
       ``(i) such facility is originally placed in service on or 
     before the date of enactment of this Act and is owned by any 
     governmental unit on such date, or
       ``(ii) such facility is originally placed in service after 
     such date if the construction of the facility commenced 
     before June 1, 2000, and such facility is owned by any 
     governmental unit when it is placed in service.
       ``(B) Denial of treatment to expansions.--Such term shall 
     not include any facility to the extent the generating 
     capacity of such facility as of any date is 3 percent above 
     the greater of its nameplate or rated capacity as of the date 
     of the enactment of this section (or, in the case of a 
     facility described in subparagraph (A)(ii), the date that the 
     facility is placed in service).
       ``(7) Regional transmission organization.--The term 
     `regional transmission organization' includes an independent 
     system operator.
       ``(8) FERC.--The term `FERC' means the Federal Energy 
     Regulatory Commission.
       ``(9) Government-owned facility.--An electric transmission 
     facility shall be treated as owned by a governmental unit as 
     of any date to the extent that--
       ``(A) such unit acquired (before the base year) long-term 
     firm transmission capacity (as determined under regulations) 
     of such facility for the purposes of serving customers to 
     which such unit had at the close of the base year--
       ``(i) a statutory service obligation, or
       ``(ii) an obligation under a requirements contract, and
       ``(B) such unit holds such capacity as of such date.
       ``(10) Statutory service obligation.--The term `statutory 
     service obligation' means an obligation under State or 
     Federal law (exclusive of an obligation arising solely under 
     a contract entered into with a person) to provide electric 
     distribution services or electric sales services, as provided 
     in such law.
       ``(11) Contract modifications.--A material modification of 
     a contract shall be treated as a new contract.
       ``(d) Election To Terminate Tax-Exempt Bond Financing for 
     Certain Electric Output Facilities.--
       ``(1) In general.--At the election of a governmental unit, 
     section 103(a) shall not apply to any bond issued by or on 
     behalf of such unit after the date of such election if any 
     portion of the proceeds of the issue of which such bond is a 
     part are used to provide any electric output facilities. Such 
     an election, once made, shall be irrevocable.
       ``(2) Other effects of election.--During the period that 
     the election under paragraph (1) is in effect with respect to 
     a governmental unit, the term `private activity bond' shall 
     not include--
       ``(A) any bond issued by such unit before the date of the 
     enactment of this section to provide an electric output 
     facility if, as of the date of the election, such bond was 
     not a private activity bond, and
       ``(B) any bond to which paragraph (1) does not apply by 
     reason of paragraph (3).
       ``(3) Exceptions for certain property.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     bond issued to provide property owned by a governmental unit 
     if such property is--
       ``(i) any qualifying transmission facility,
       ``(ii) any qualifying distribution facility,
       ``(iii) any facility necessary to meet Federal or State 
     environmental requirements applicable to an existing 
     generation facility owned by the governmental unit as of the 
     date of the election,
       ``(iv) any property to repair any existing generation 
     facility owned by the governmental unit as of the date of the 
     election,
       ``(v) any qualified facility (as defined in section 
     45(c)(3)) producing electricity from any qualified energy 
     resource (as defined in section 45(c)(1)), and
       ``(vi) any energy property (as defined in section 48(a)(3)) 
     placed in service during a period that the energy percentage 
     under section 48(a) is greater than zero.
       ``(B) Limitation on use by nongovernmental persons.--
     Subparagraph (A) shall not apply to any property constructed, 
     acquired or financed for a principal purpose of providing the 
     facility (or the output thereof) to nongovernmental persons.
       ``(4) Definitions.--For purposes of this subsection--
       ``(A) Qualifying distribution facility.--The term 
     `qualifying distribution facility' means a distribution 
     facility meeting the open access requirements of subsection 
     (a)(2)(A)(ii).
       ``(B) Qualifying transmission facility.--The term 
     `qualifying transmission facility' means a local transmission 
     facility (as defined in subsection (b)(3)) meeting the open 
     access requirements of subsection (a)(2)(A)(i).
       ``(5) Effect of election.--
       ``(A) In general.--An election under paragraph (1) shall be 
     binding on any successor in interest to, or any related party 
     with respect to, the electing governmental unit. For purposes 
     of this paragraph, a governmental unit shall be treated as 
     related to another governmental unit if it is a member of the 
     same controlled group (as determined under regulations).
       ``(B) Treatment of electing governmental unit.--A 
     governmental unit which makes an election under paragraph (1) 
     shall be treated for purposes of section 141 as a person--
       ``(i) which is not a governmental unit, and
       ``(ii) which is engaged in a trade or business,
     with respect to its purchase of electricity generated by an 
     electric output facility placed in service after the date of 
     such election if such purchase is under a contract executed 
     after such date.''
       (b) Waiver of Certain Limitations Not To Apply to 
     Distribution Facilities.--Section 141(d)(5) is amended by 
     inserting ``(except in the case of an electric output 
     facility that is a distribution facility)'' after ``this 
     subsection''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter B of chapter 1 is amended by 
     inserting after the item relating to section 141 the 
     following new item:

``Sec. 141A. Treatment of government-owned electric output 
              facilities.''
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act, except 
     that a governmental unit may elect to have section 141A(a)(1) 
     of the Internal Revenue Code of 1986, as added by subsection 
     (a), take effect on April 14, 1996.
       (2) Binding contracts.--The amendment made by subsection 
     (b) (relating to waiver of certain limitations not to apply 
     to distribution facilities) shall not apply to facilities 
     acquired pursuant to a contract which was entered into before 
     the date of the enactment of this Act and which was binding 
     on such date and at all times thereafter before such 
     acquisition.
       (3) Comparable treatment to bonds under 1954 code rules.--
     References in the amendments made by this Act to sections of 
     the Internal Revenue Code of 1986 shall be deemed to include 
     references to comparable sections of the Internal Revenue 
     Code of 1954.

     SEC. 3208. SALES OR DISPOSITIONS TO IMPLEMENT FEDERAL ENERGY 
                   REGULATORY COMMISSION OR STATE ELECTRIC 
                   RESTRUCTURING POLICY.

       (a) In General.--Section 1033 (relating to involuntary 
     conversions) is amended by redesignating subsection (k) as 
     subsection (l) and by inserting after subsection (j) the 
     following new subsection:
       ``(k) Sales or Dispositions To Implement Federal Energy 
     Regulatory Commission or State Electric Restructuring 
     Policy.--
       ``(1) In general.--For purposes of this subtitle, if a 
     taxpayer elects the application of this subsection to a 
     qualifying electric transmission transaction--
       ``(A) such transaction shall be treated as an involuntary 
     conversion to which this section applies, and
       ``(B) exempt utility property shall be treated as property 
     which is similar or related in service or use to the property 
     disposed of in such transaction.
       ``(2) Extension of replacement period.--In the case of any 
     involuntary conversion described in paragraph (1), subsection 
     (a)(2)(B) shall be applied by substituting `4 years' for `2 
     years' in clause (i) thereof.
       ``(3) Qualifying electric transmission transaction.--For 
     purposes of this subsection, the term `qualifying electric 
     transmission transaction' means any sale or other disposition 
     before January 1, 2009, of--
       ``(A) property used in the trade or business of providing 
     electric transmission services, or
       ``(B) any stock or partnership interest in a corporation or 
     partnership, as the case may be, whose principal trade or 
     business consists of providing electric transmission 
     services,
     but only if such sale or disposition is to an independent 
     transmission company.
       ``(4) Independent transmission company.--For purposes of 
     this subsection, the term `independent transmission company' 
     means--
       ``(A) a regional transmission organization approved by the 
     Federal Energy Regulatory Commission,
       ``(B) a person--
       ``(i) who the Federal Energy Regulatory Commission 
     determines in its authorization of the transaction under 
     section 203 of the Federal Power Act (16 U.S.C. 823b) is not 
     a market participant within the meaning of such Commission's 
     rules applicable to regional transmission organizations, and

[[Page H5094]]

       ``(ii) whose transmission facilities to which the election 
     under this subsection applies are under the operational 
     control of a Federal Energy Regulatory Commission-approved 
     regional transmission organization before the close of the 
     period specified in such authorization, but not later than 
     the close of the period applicable under subsection (a)(2)(B) 
     as extended under paragraph (2), or
       ``(C) in the case of facilities subject to the exclusive 
     jurisdiction of the Public Utility Commission of Texas, a 
     person which is approved by that Commission as consistent 
     with Texas State law regarding an independent transmission 
     organization.
       ``(5) Exempt utility property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `exempt utility property' means 
     property used in the trade or business of--
       ``(i) generating, transmitting, distributing, or selling 
     electricity, or
       ``(ii) producing, transmitting, distributing, or selling 
     natural gas.
       ``(B) Nonrecognition of gain by reason of acquisition of 
     stock.--Acquisition of control of a corporation shall be 
     taken into account under this section with respect to a 
     qualifying electric transmission transaction only if the 
     principal trade or business of such corporation is a trade or 
     business referred to in subparagraph (A).
       ``(6) Special rule for consolidated groups.--In the case of 
     a corporation which is a member of an affiliated group filing 
     a consolidated return, such corporation shall be treated as 
     satisfying the purchase requirement of subsection (a)(2) with 
     respect to any qualifying electric transmission transaction 
     engaged in by such corporation to the extent such requirement 
     is satisfied by another member of such group.
       ``(7) Election.--An election under paragraph (1), once 
     made, shall be irrevocable.''
       (b) Exception From Gain Recognition under Section 1245.--
     Subsection (b) of section 1245 is amended by adding at the 
     end the following new paragraph:
       ``(9) Dispositions to implement federal energy regulatory 
     commission or state electric restructuring policy.--At the 
     election of the taxpayer, the amount of gain which would (but 
     for this paragraph) be recognized under this section on any 
     qualified electric transmission transaction (as defined in 
     section 1033(k)) for which an election under section 1033 is 
     made shall be reduced by the aggregate reduction in the basis 
     of section 1245 property held by the taxpayer or, if 
     insufficient, by a member of an affiliated group which 
     includes the taxpayer at any time during the taxable year in 
     which such transaction occurred. The manner and amount of 
     such reduction shall be determined under regulations 
     prescribed by the Secretary.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to transactions occurring after the date of the 
     enactment of this Act.

     SEC. 3209. DISTRIBUTIONS OF STOCK TO IMPLEMENT FEDERAL ENERGY 
                   REGULATORY COMMISSION OR STATE ELECTRIC 
                   RESTRUCTURING POLICY.

       (a) In General.--Subparagraph (A) of section 355(e)(3) 
     (relating to special rules relating to acquisitions) is 
     amended by inserting after clause (iv) the following new 
     clause:
       ``(v) The acquisition of stock in any controlled 
     corporation in a qualifying electric transmission transaction 
     (as defined in section 1033(k)).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to distributions after the date of the enactment 
     of this Act.

     SEC. 3210. 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 is amended to read as follows:
       ``(b) Limitation on Amounts Paid Into Fund.--
       ``(1) In general.--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.
       ``(2) Contributions after funding period.--Notwithstanding 
     any other provision of this section, a taxpayer may pay into 
     the Fund in any taxable year after the last taxable year to 
     which the ruling amount applies. Payments may not be made 
     under the preceding sentence to the extent such payments 
     would cause the assets of the Fund to exceed the nuclear 
     decommissioning costs allocable to the taxpayer's current or 
     former interest in the nuclear powerplant to which the Fund 
     relates. The limitation under the preceding sentence shall be 
     determined by taking into account a reasonable rate of 
     inflation for the nuclear decommissioning costs and a 
     reasonable after-tax rate of return on the assets of the Fund 
     until such assets are anticipated to be expended.''.
       (b) Clarification of Treatment of Fund Transfers.--
     Subsection (e) of section 468A is amended by adding at the 
     end the following new paragraph:
       ``(8) Treatment of fund transfers.--If, in connection with 
     the transfer of the taxpayer's interest in a nuclear 
     powerplant, the taxpayer transfers the Fund with respect to 
     such powerplant to the transferee of such interest and the 
     transferee elects to continue the application of this section 
     to such Fund--
       ``(A) the transfer of such Fund shall not cause such Fund 
     to be disqualified from the application of this section, and
       ``(B) no amount shall be treated as distributed from such 
     Fund, or be includible in gross income, by reason of such 
     transfer.''.
       (c) 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 powerplant may transfer into such 
     Fund up to an amount equal to the excess of the total nuclear 
     decommissioning costs with respect to such nuclear powerplant 
     over the portion of such costs taken into account in 
     determining the ruling amount in effect immediately before 
     the transfer.
       ``(2) Deduction for amounts transferred.--
       ``(A) In general.--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 
     powerplant 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 or a corresponding amount was not included 
     in gross income. 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 transferee and not to the transferor. The preceding 
     sentence shall not apply if the transferor is an organization 
     exempt from tax imposed by this chapter.
       ``(D) Special rules.--
       ``(i) Gain or loss not recognized.--No gain or loss shall 
     be recognized on any transfer permitted by this subsection.
       ``(ii) Transfers of appreciated property.--If appreciated 
     property is transferred in a transfer permitted by this 
     subsection, the amount of the deduction shall be 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) is amended to read as 
     follows:
       ``(A) fund the total nuclear decommissioning costs with 
     respect to such powerplant over the estimated useful life of 
     such powerplant, and''.
       (d) Deduction for Nuclear Decommissioning Costs When 
     Paid.--Paragraph (2) of section 468A(c) is amended to read as 
     follows:
       ``(2) Deduction of nuclear decommissioning costs.--In 
     addition to any deduction under subsection (a), nuclear 
     decommissioning costs paid or incurred by the taxpayer during 
     any taxable year shall constitute ordinary and necessary 
     expenses in carrying on a trade or business under section 
     162.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3211. TREATMENT OF CERTAIN INCOME OF COOPERATIVES.

       (a) Income From Open Access and Nuclear Decommissioning 
     Transactions.--
       (1) In general.--Subparagraph (C) of section 501(c)(12) is 
     amended by striking ``or'' at the end of clause (i), by 
     striking the period at the end of clause (ii) and inserting a 
     comma, and by adding at the end the following new clauses:
       ``(iii) from any open access transaction (other than income 
     received or accrued directly or indirectly from a member), or
       ``(iv) from any nuclear decommissioning transaction.''
       (2) Definitions.--Paragraph (12) of section 501(c) is 
     amended by adding at the end the following new subparagraph:
       ``(E) For purposes of subparagraph (C)--
       ``(i) The term `open access transaction' means any activity 
     which would be a permitted open access activity (as defined 
     in section 141A(a)(2)) if the cooperative were a governmental 
     unit.
       ``(ii) The term `nuclear decommissioning transaction' 
     means--

       ``(I) any transfer into a trust, fund, or instrument 
     established to pay any nuclear decommissioning costs if the 
     transfer is in connection with the transfer of the 
     cooperative's interest in a nuclear powerplant or nuclear 
     powerplant unit,
       ``(II) any distribution from such a trust, fund, or 
     instrument, or

[[Page H5095]]

       ``(III) any earnings from such a trust, fund, or 
     instrument.''

       (b) Income From Load Loss Transactions Treated as Member 
     Income.--Paragraph (12) of section 501(c) is amended by 
     adding after subparagraph (E) the following new subparagraph:
       ``(F)(i) In the case of a mutual or cooperative electric 
     company, income received or accrued from a load loss 
     transaction shall be treated as an amount collected from 
     members for the sole purpose of meeting losses and expenses.
       ``(ii) For purposes of clause (i), the term `load loss 
     transaction' means any sale (whether at wholesale or at 
     retail) which would be a load loss sale under rules similar 
     to the rules of section 141A(a)(3)(C).
       ``(iii) A company shall not fail to be treated as a mutual 
     cooperative company for purposes of this paragraph by reason 
     of the treatment under clause (i).
       ``(iv) A rule similar to the rule of this subparagraph 
     shall apply to an organization to which section 1381 does not 
     apply by reason of section 1381(a)(2)(C).''
       (c) Exception From Unrelated Business Taxable Income.--
     Subsection (b) of section 512 (relating to modifications) is 
     amended by adding at the end the following new paragraph:
       ``(18) Treatment of load loss sales of mutual or 
     cooperative electric companies.--In the case of a mutual or 
     cooperative electric company described in section 501(c)(12), 
     there shall be excluded income which is treated as member 
     income under subparagraph (F) thereof.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 3212. REPEAL OF REQUIREMENT OF CERTAIN APPROVED 
                   TERMINALS TO OFFER DYED DIESEL FUEL AND 
                   KEROSENE FOR NONTAXABLE PURPOSES.

       Section 4101 (relating to certain approved terminals of 
     registered persons required to offer dyed diesel fuel and 
     kerosene for nontaxable purposes) is amended by striking 
     subsection (e).

     SEC. 3213. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR 
                   NATURAL GAS.

       (a) In General.--Subsection (b) of section 148 (defining 
     higher yielding investments) is amended by adding at the end 
     the following new paragraph:
       ``(4) Exception for certain prepayments to ensure natural 
     gas supply.--The term `investment property' shall not include 
     any prepayment for the purpose of obtaining a supply of a 
     natural gas--
       ``(A) at least 85 percent of which is to be used in the 
     State in which the issuer is located, and
       ``(B) which is to be used in a business of one or more 
     utilities each of which is owned and operated by a State or 
     local government, any political subdivision or 
     instrumentality thereof, or any governmental unit acting for 
     or on behalf of such a utility.''.
       (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) arises from a transaction described in section 
     148(b)(4).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after October 22, 1986; 
     except that section 148(b)(4)(A) of the Internal Revenue Code 
     of 1986, as added by this section, shall apply only to 
     obligations issued after the date of the enactment of this 
     Act.

                         TITLE III--PRODUCTION

     SEC. 3301. OIL AND GAS FROM MARGINAL WELLS.

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

     ``SEC. 45J. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL 
                   WELLS.

       ``(a) General Rule.--For purposes of section 38, the 
     marginal well production credit for any taxable year is an 
     amount equal to the product of--
       ``(1) the credit amount, and
       ``(2) the qualified credit oil production and the qualified 
     natural gas production which is attributable to the taxpayer.
       ``(b) Credit Amount.--For purposes of this section--
       ``(1) In general.--The credit amount is--
       ``(A) $3 per barrel of qualified crude oil production, and
       ``(B) 50 cents per 1,000 cubic feet of qualified natural 
     gas production.
       ``(2) Reduction as oil and gas prices increase.--
       ``(A) In general.--The $3 and 50 cents amounts under 
     paragraph (1) shall each be reduced (but not below zero) by 
     an amount which bears the same ratio to such amount 
     (determined without regard to this paragraph) as--
       ``(i) the excess (if any) of the applicable reference price 
     over $15 ($1.67 for qualified natural gas production), bears 
     to
       ``(ii) $3 ($0.33 for qualified natural gas production).
     The applicable reference price for a taxable year is the 
     reference price of the calendar year preceding the calendar 
     year in which the taxable year begins.
       ``(B) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2001, each of the 
     dollar amounts contained in subparagraph (A) shall be 
     increased to an amount equal to such dollar amount multiplied 
     by the inflation adjustment factor for such calendar year 
     (determined under section 43(b)(3)(B) by substituting `2000' 
     for `1990').
       ``(C) Reference price.--For purposes of this paragraph, the 
     term `reference price' means, with respect to any calendar 
     year--
       ``(i) in the case of qualified crude oil production, the 
     reference price determined under section 29(d)(2)(C), and
       ``(ii) in the case of qualified natural gas production, the 
     Secretary's estimate of the annual average wellhead price per 
     1,000 cubic feet for all domestic natural gas.
       ``(c) Qualified Crude Oil and Natural Gas Production.--For 
     purposes of this section--
       ``(1) In general.--The terms `qualified crude oil 
     production' and `qualified natural gas production' mean 
     domestic crude oil or natural gas which is produced from a 
     qualified marginal well.
       ``(2) Limitation on amount of production which may 
     qualify.--
       ``(A) In general.--Crude oil or natural gas produced during 
     any taxable year from any well shall not be treated or 
     qualified crude oil production or qualified natural gas 
     production to the extent production from the well during the 
     taxable year exceeds 1,095 barrels or barrel equivalents.
       ``(B) Proportionate reductions.--
       ``(i) Short taxable years.--In the case of a short taxable 
     year, the limitations under this paragraph shall be 
     proportionately reduced to reflect the ratio which the number 
     of days in such taxable year bears to 365.
       ``(ii) Wells not in production entire year.--In the case of 
     a well which is not capable of production during each day of 
     a taxable year, the limitations under this paragraph 
     applicable to the well shall be proportionately reduced to 
     reflect the ratio which the number of days of production 
     bears to the total number of days in the taxable year.
       ``(3) Definitions.--
       ``(A) Qualified marginal well.--The term `qualified 
     marginal well' means a domestic well--
       ``(i) the production from which during the taxable year is 
     treated as marginal production under section 613A(c)(6), or
       ``(ii) which, during the taxable year--

       ``(I) has average daily production of not more than 25 
     barrel equivalents, and
       ``(II) produces water at a rate not less than 95 percent of 
     total well effluent.

       ``(B) Crude oil, etc.--The terms `crude oil', `natural 
     gas', `domestic', and `barrel' have the meanings given such 
     terms by section 613A(e).
       ``(C) Barrel equivalent.--The term `barrel equivalent' 
     means, with respect to natural gas, a conversation ratio of 
     6,000 cubic feet of natural gas to 1 barrel of crude oil.
       ``(d) Other Rules.--
       ``(1) Production attributable to the taxpayer.--In the case 
     of a qualified marginal well in which there is more than one 
     owner of operating interests in the well and the crude oil or 
     natural gas production exceeds the limitation under 
     subsection (c)(2), qualifying crude oil production or 
     qualifying natural gas production attributable to the 
     taxpayer shall be determined on the basis of the ratio which 
     taxpayer's revenue interest in the production bears to the 
     aggregate of the revenue interests of all operating interest 
     owners in the production.
       ``(2) Operating interest required.--Any credit under this 
     section may be claimed only on production which is 
     attributable to the holder of an operating interest.
       ``(3) Production from nonconventional sources excluded.--In 
     the case of production from a qualified marginal well which 
     is eligible for the credit allowed under section 29 for the 
     taxable year, no credit shall be allowable under this section 
     unless the taxpayer elects not to claim the credit under 
     section 29 with respect to the well.
       ``(4) Noncompliance with pollution laws.--For purposes of 
     subsection (c)(3)(A), a marginal well which is not in 
     compliance with the applicable State and Federal pollution 
     prevention, control, and permit requirements for any period 
     of time shall not be considered to be a qualified marginal 
     well during such period.''.
       (b) Credit Treated as Business Credit.--Section 38(b) is 
     amended by striking ``plus'' at the end of paragraph (17), by 
     striking the period at the end of paragraph (18) and 
     inserting ``, plus'', and by adding at the end the following:
       ``(19) the marginal oil and gas well production credit 
     determined under section 45J(a).''.
       (c) Carryback.--Subsection (a) of section 39 (relating to 
     carryback and carryforward of unused credits generally) is 
     amended by adding at the end the following:
       ``(3) 10-year carryback for marginal oil and gas well 
     production credit.--In the case of the marginal oil and gas 
     well production credit--
       ``(A) this section shall be applied separately from the 
     business credit (other than the marginal oil and gas well 
     production credit),
       ``(B) paragraph (1) shall be applied by substituting `10 
     taxable years' for `1 taxable years' in subparagraph (A) 
     thereof, and
       ``(C) paragraph (2) shall be applied--
       ``(i) by substituting `31 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and

[[Page H5096]]

       ``(ii) by substituting `30 taxable years' for `20 taxable 
     years' in subparagraph (A) thereof.''.
       (d) Coordination With Section 29.--Section 29(a) is amended 
     by striking ``There'' and inserting ``At the election of the 
     taxpayer, there''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter I is amended by 
     adding at the end the following:

``Sec. 45J. Credit for producing oil and gas from marginal wells.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to production in taxable years beginning after 
     December 31, 2001.

     SEC. 3302. TEMPORARY SUSPENSION OF LIMITATION BASED ON 65 
                   PERCENT OF TAXABLE INCOME AND EXTENSION OF 
                   SUSPENSION OF TAXABLE INCOME LIMIT WITH RESPECT 
                   TO MARGINAL PRODUCTION.

       (a) Limitation Based on 65 Percent of Taxable Income.--
     Subsection (d) of section 613A (relating to limitation on 
     percentage depletion in case of oil and gas wells) is amended 
     by adding at the end the following new paragraph:
       ``(6) Temporary suspension of taxable income limit.--
     Paragraph (1) shall not apply to taxable years beginning 
     after December 31, 2001, and before January 1, 2007, 
     including with respect to amounts carried under the second 
     sentence of paragraph (1) to such taxable years.''.
       (b) Extension of Suspension of Taxable Income Limit With 
     Respect to Marginal Production.--Subparagraph (H) of section 
     613A(c)(6) (relating to temporary suspension of taxable 
     income limit with respect to marginal production) is amended 
     by striking ``2002'' and inserting ``2007''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3303. DEDUCTION FOR DELAY RENTAL PAYMENTS.

       (a) In General.--Section 263 (relating to capital 
     expenditures) is amended by adding after subsection (i) the 
     following:
       ``(j) Delay Rental Payments for Domestic Oil and Gas 
     Wells.--
       ``(1) In general.--Notwithstanding subsection (a), a 
     taxpayer may elect to treat delay rental payments incurred in 
     connection with the development of oil or gas within the 
     United States (as defined in section 638) as payments which 
     are not chargeable to capital account. Any payments so 
     treated shall be allowed as a deduction in the taxable year 
     in which paid or incurred.
       ``(2) Delay rental payments.--For purposes of paragraph 
     (1), 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) Conforming Amendment.--Section 263A(c)(3) is amended by 
     inserting ``263(j),'' after `263(i),'.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2001.

     SEC. 3304. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES.

       (a) In General.--Section 263 (relating to capital 
     expenditures) is amended by adding after subsection (j) the 
     following:
       ``(k) Geological and Geophysical Expenditures for Domestic 
     Oil and Gas Wells.--Notwithstanding subsection (a), a 
     taxpayer may elect to treat geological and geophysical 
     expenses incurred in connection with the exploration for, or 
     development of, oil or gas within the United States (as 
     defined in section 638) as expenses which are not chargeable 
     to capital account. Any expenses so treated shall be allowed 
     as a deduction in the taxable year in which paid or 
     incurred.''.
       (b) Conforming Amendment.--Section 263A(c)(3), as amended 
     by section 3303(b), is amended by inserting ``263(k),'' after 
     ``263(j),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred in taxable years 
     beginning after December 31, 2001.

     SEC. 3305. 5-YEAR NET OPERATING LOSS CARRYBACK FOR LOSSES 
                   ATTRIBUTABLE TO OPERATING MINERAL INTERESTS OF 
                   OIL AND GAS PRODUCERS.

       (a) In General.--Paragraph (1) of section 172(b) (relating 
     to years to which loss may be carried) is amended by adding 
     at the end the following new subparagraph:
       ``(H) Losses on operating mineral interests of oil and gas 
     producers.--In the case of a taxpayer which has an eligible 
     oil and gas loss (as defined in subsection (j)) for a taxable 
     year, such eligible oil and gas loss shall be a net operating 
     loss carryback to each of the 5 taxable years preceding the 
     taxable year of such loss.''.
       (b) Eligible Oil and Gas Loss.--Section 172 is amended by 
     redesignating subsection (j) as subsection (k) and by 
     inserting after subsection (i) the following new subsection:
       ``(j) Eligible Oil and Gas Loss.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible oil and gas loss' 
     means the lesser of--
       ``(A) the amount which would be the net operating loss for 
     the taxable year if only income and deductions attributable 
     to operating mineral interests (as defined in section 614(d)) 
     in oil and gas wells are taken into account, or
       ``(B) the amount of the net operating loss for such taxable 
     year.
       ``(2) Coordination with subsection (b)(2).--For purposes of 
     applying subsection (b)(2), an eligible oil and gas loss for 
     any taxable year shall be treated in a manner similar to the 
     manner in which a specified liability loss is treated.
       ``(3) Election.--Any taxpayer entitled to a 5-year 
     carryback under subsection (b)(1)(H) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year determined without regard to subsection (b)(1)(H).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to net operating losses for taxable years 
     beginning after December 31, 2001.

     SEC. 3306. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING 
                   FUEL FROM A NONCONVENTIONAL SOURCE.

       (a) In General.--Section 29 is amended by adding at the end 
     the following new subsection:
       ``(h) Extension for Other Facilities.--
       ``(1) Extension for oil and certain gas.--In the case of a 
     well for producing qualified fuels described in subparagraph 
     (A) or (B)(i) of subsection (c)(1)--
       ``(A) Application of credit for new wells.--Notwithstanding 
     subsection (f), this section shall apply with respect to such 
     fuels--
       ``(i) which are produced from a well drilled after the date 
     of the enactment of this subsection and before January 1, 
     2007, and
       ``(ii) which are sold not later than the close of the 4-
     year period beginning on the date that such well is drilled, 
     or, if earlier, January 1, 2010.
       ``(B) Extension of credit for old wells.--Subsection (f)(2) 
     shall be applied by substituting `2007' for `2003' with 
     respect to wells described in subsection (f)(1)(A) with 
     respect to such fuels.
       ``(2) Extension for facilities producing qualified fuel 
     from landfill gas.--
       ``(A) In general.--In the case of a facility for producing 
     qualified fuel from landfill gas which was placed in service 
     after June 30, 1998, and before January 1, 2007, this section 
     shall apply to fuel produced at such facility during the 5-
     year period beginning on the later of--
       ``(i) the date such facility was placed in service, or
       ``(ii) the date of the enactment of this subsection.
       ``(B) Reduction of credit for certain landfill 
     facilities.--In the case of a facility to which paragraph (1) 
     applies and which is subject to the 1996 New Source 
     Performance Standards/Emmissions Guidelines of the 
     Environmental Protection Agency, subsection (a)(1) shall be 
     applied by substituting `$2' for `$3'.
       ``(3) Special rules.--In determining the amount of credit 
     allowable under this section solely by reason of this 
     subsection--
       ``(A) Daily limit.--The amount of qualified fuels sold 
     during any taxable year which may be taken into account by 
     reason of this subsection with respect to any project shall 
     not exceed an average barrel-of-oil equivalent of 200,000 
     cubic feet of natural gas per day. Days before the date the 
     project is placed in service shall not be taken into account 
     in determining such average.
       ``(B) Extension period to commence with unadjusted credit 
     amount.--In the case of fuels sold during 2001 and 2002, the 
     dollar amount applicable under subsection (a)(1) shall be $3 
     (without regard to subsection (b)(2)). In the case of fuels 
     sold after 2002, subparagraph (B) of subsection (d)(2) shall 
     be applied by substituting `2002' for `1979'.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to fuel sold after the date of the enactment of 
     this Act.

     SEC. 3307. BUSINESS RELATED ENERGY CREDITS ALLOWED AGAINST 
                   REGULAR AND MINIMUM TAX.

       (a) In General.--Subsection (c) of section 38 (relating to 
     limitation based on amount of tax) is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Special rules for specified energy credits.--
       ``(A) In general.--In the case of specified energy 
     credits--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the specified 
     energy credits).

       ``(B) Specified energy credits.--For purposes of this 
     subsection, the term `specified energy credits' means the 
     credits determined under sections 45G, 45H, 45I, 45J, and 
     45K.''.
       (b) Conforming Amendment.--Subclause (II) of section 
     38(c)(2)(A)(ii) is amended by inserting ``or the specified 
     energy credits'' after ``employment credit''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of 
     enactment of this Act.

     SEC. 3308. TEMPORARY REPEAL OF ALTERNATIVE MINIMUM TAX 
                   PREFERENCE FOR INTANGIBLE DRILLING COSTS.

       (a) In General.--Clause (ii) of section 57(a)(2)(E) is 
     amended by adding at the end the following new sentence: 
     ``The preceding sentence shall not apply to taxable years 
     beginning after December 31, 2001, and before January 1, 
     2005.''.

[[Page H5097]]

       (b) Effective Dates.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3309. ALLOWANCE OF ENHANCED RECOVERY CREDIT AGAINST THE 
                   ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subparagraph (B) of section 38(c)(3), as 
     amended by section 3307, is amended by adding at the end the 
     following new sentence: ``For taxable years beginning before 
     January 1, 2005, such term includes the credit determined 
     under section 43.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 3310. EXTENSION OF CERTAIN BENEFITS FOR ENERGY-RELATED 
                   BUSINESSES ON INDIAN RESERVATIONS.

       (a) Depreciation for Property on Indian Reservations.--
     Paragraph (8) of section 168(j) (relating to termination) is 
     amended by adding at the end the following new sentence: 
     ``The preceding sentence shall be applied by substituting 
     `December 31, 2006' for `December 31, 2003' in the case of 
     property placed in service as part of a facility for--
       ``(A) the generation or transmission of electricity 
     (including from any qualified energy resource, as defined in 
     section 45(c)),
       ``(B) an oil or gas well,
       ``(C) the transmission or refining of oil or gas, or
       ``(D) the production of any qualified fuel (as defined in 
     section 29(c)).''
       (b) Employment of Indians.--Subsection (f) of section 45A 
     (relating to termination) is amended by adding at the end the 
     following new sentence: ``The preceding sentence shall be 
     applied by substituting `December 31, 2006' for `December 31, 
     2003' in the case of wages paid for services performed at a 
     facility described in section 168(j)(8).''

                               DIVISION D

     SEC. 4101. 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. 4102. 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 period 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. 4103. 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)(iii) (relating to solar energy 
     systems)--
       (1) by inserting ``or paragraph (10)''; and
       (2) by striking ``20 percent'' and inserting ``30 
     percent''.
       (b) Multifamily Housing Mortgage Insurance.--Section 207(c) 
     of the National Housing Act (12 U.S.C. 1713(c)) is amended, 
     in the second undesignated paragraph beginning after 
     paragraph (3) (relating to solar energy systems and 
     residential energy conservation measures), by striking ``20 
     percent'' and inserting ``30 percent''.
       (c) Cooperative Housing Mortgage Insurance.--Section 213(p) 
     of the National Housing Act (12 U.S.C. 1715e(p)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.
       (d) Rehabilitation and Neighborhood Conservation Housing 
     Mortgage Insurance.--Section 220(d)(3)(B)(iii) of the 
     National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is 
     amended by striking ``20 per centum'' and inserting ``30 
     percent''.
       (e) Low-Income Multifamily Housing Mortgage Insurance.--
     Section 221(k) of the National Housing Act (12 U.S.C. 
     1715l(k)) is amended by striking ``20 per centum'' and 
     inserting ``30 percent''.
       (f) Elderly Housing Mortgage Insurance.--The proviso at the 
     end of section 213(c)(2) of the National Housing Act (12 
     U.S.C. 1715v(c)(2)) is amended by striking ``20 per centum'' 
     and inserting ``30 percent''.
       (g) Condominium Housing Mortgage Insurance.--Section 234(j) 
     of the National Housing Act (12 U.S.C. 1715y(j)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.

     SEC. 4104. PUBLIC HOUSING CAPITAL FUND.

       Section 9(d)(1) of the United States Housing Act of 1937 
     (42 U.S.C. 1437g(d)(1)) is amended--
       (1) in subparagraph (I), by striking ``and'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(L) 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.''.

     SEC. 4105. 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 a 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. 4106. NORTH AMERICAN DEVELOPMENT BANK.

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

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

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

                               DIVISION E

     SEC. 5000. SHORT TITLE.

       This division may be cited as the ``Clean Coal Power 
     Initiative Act of 2001''.

     SEC. 5001. FINDINGS.

       Congress finds that--
       (1) reliable, affordable, increasingly clean electricity 
     will continue to power the growing United States economy;
       (2) an increasing use of electrotechnologies, the desire 
     for continuous environmental improvement, a more competitive 
     electricity market, and concerns about rising energy prices 
     add importance to the need for reliable, affordable, 
     increasingly clean electricity;
       (3) coal, which, as of the date of enactment of this Act, 
     accounts for more than \1/2\ of all electricity generated in 
     the United States, is the most abundant fossil energy 
     resource of the United States;
       (4) coal comprises more than 85 percent of all fossil 
     resources in the United States and exists in quantities 
     sufficient to supply the United States for 250 years at 
     current usage rates;
       (5) investments in electricity generating facility 
     emissions control technology over the past 30 years have 
     reduced the aggregate emissions of pollutants from coal-based 
     generating facilities by 21 percent, even as coal use for 
     electricity generation has nearly tripled;
       (6) continuous improvement in efficiency and environmental 
     performance from electricity generating facilities would 
     allow continued use of coal and preserve less abundant energy 
     resources for other energy uses;
       (7) new ways to convert coal into electricity can 
     effectively eliminate health-threatening emissions and 
     improve efficiency by as much as 50 percent, but initial 
     deployment of new coal generation methods and equipment 
     entails significant risk that generators may be unable to 
     accept in a newly competitive electricity market; and
       (8) continued environmental improvement in coal-based 
     generation and increasing the production and supply of power 
     generation facilities with less air emissions, with the 
     ultimate goal of near-zero emissions, is important and 
     desirable.

     SEC. 5002. DEFINITIONS.

       In this division:
       (1) Cost and performance goals.--The term ``cost and 
     performance goals'' means the cost and performance goals 
     established under section 5004.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 5003. CLEAN COAL POWER INITIATIVE.

       (a) In General.--The Secretary shall carry out a program 
     under--
       (1) this division;
       (2) the Federal Nonnuclear Energy Research and Development 
     Act of 1974 (42 U.S.C. 5901 et seq.);
       (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 
     et seq.); and
       (4) title XIII of the Energy Policy Act of 1992 (42 U.S.C. 
     13331 et seq.),
     to achieve cost and performance goals established by the 
     Secretary under section 5004.

[[Page H5098]]

     SEC. 5004. COST AND PERFORMANCE GOALS.

       (a) Review and Assessment.--The Secretary shall perform an 
     assessment that establishes measurable cost and performance 
     goals for 2005, 2010, 2015, and 2020 for the programs 
     authorized by this division. Such assessment shall be based 
     on the latest scientific, economic, and technical knowledge.
       (b) Consultation.--In establishing the cost and performance 
     goals, the Secretary shall consult with representatives of--
       (1) the United States coal industry;
       (2) State coal development agencies;
       (3) the electric utility industry;
       (4) railroads and other transportation industries;
       (5) manufacturers of advanced coal-based equipment;
       (6) institutions of higher learning, national laboratories, 
     and professional and technical societies;
       (7) organizations representing workers;
       (8) organizations formed to--
       (A) promote the use of coal;
       (B) further the goals of environmental protection; and
       (C) promote the production and generation of coal-based 
     power from advanced facilities; and
       (9) other appropriate Federal and State agencies.
       (c) Timing.--The Secretary shall--
       (1) not later than 120 days after the date of enactment of 
     this Act, issue a set of draft cost and performance goals for 
     public comment; and
       (2) not later than 180 days after the date of enactment of 
     this Act, after taking into consideration any public comments 
     received, submit to the Committee on Energy and Commerce and 
     the Committee on Science of the House of Representatives, and 
     to the Senate, the final cost and performance goals.

     SEC. 5005. AUTHORIZATION OF APPROPRIATIONS.

       (a) Clean Coal Power Initiative.--Except as provided in 
     subsection (c), there are authorized to be appropriated to 
     the Secretary to carry out the Clean Coal Power Initiative 
     under section 5003 $200,000,000 for each of the fiscal years 
     2002 through 2011, to remain available until expended.
       (b) Limit on use of Funds.--Notwithstanding subsection (a), 
     no funds may be used to carry out the activities authorized 
     by this Act after September 30, 2002, unless the Secretary 
     has transmitted to the Committee on Energy and Commerce and 
     the Committee on Science of the House of Representatives, and 
     to the Senate, the report required by this subsection and 1 
     month has elapsed since that transmission. 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;
       (4) recommendations for a mechanism for recoupment of 
     Federal funding for successful commercial projects; and
       (5) 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.
       (c) Applicability.--Subsection (b) shall not apply to any 
     project begun before September 30, 2002.

     SEC. 5006. PROJECT CRITERIA.

       (a) In General.--The Secretary shall not provide funding 
     under this division for any project that does not advance 
     efficiency, environmental performance, and cost 
     competitiveness well beyond the level of technologies that 
     are in operation or have been demonstrated as of the date of 
     the enactment of this Act.
       (b) Technical Criteria for Clean Coal Power Initiative.--
       (1) Gasification.--(A) In allocating the funds authorized 
     under section 5005(a), the Secretary shall ensure that at 
     least 80 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) The Secretary shall set technical milestones specifying 
     emissions levels that coal gasification projects must be 
     designed to and reasonably expected to achieve. The 
     milestones shall get more restrictive through the life of the 
     program. The milestones shall be designed to achieve by 2020 
     coal gasification projects able--
       (i) to remove 99 percent of sulfur dioxide;
       (ii) to emit no more than .05 lbs of NOx per million BTU;
       (iii) to achieve substantial reductions in mercury 
     emissions; and
       (iv) to achieve a thermal efficiency of 60 percent (higher 
     heating value).
       (2) Other projects.--For projects not described in 
     paragraph (1), the Secretary shall set technical milestones 
     specifying emissions levels that the projects must be 
     designed to and reasonably expected to achieve. The 
     milestones shall get more restrictive through the life of the 
     program. The milestones shall be designed to achieve by 2010 
     projects able--
       (A) to remove 97 percent of sulfur dioxide;
       (B) to emit no more than .08 lbs of NOx per million BTU;
       (C) to achieve substantial reductions in mercury emissions; 
     and
       (D) to achieve a thermal efficiency of 45 percent (higher 
     heating value).
       (c) Financial Criteria.--The Secretary shall not provide a 
     funding award under this division unless the recipient has 
     documented to the satisfaction of the Secretary that--
       (1) the award recipient is financially viable without the 
     receipt of additional Federal funding;
       (2) the recipient will provide sufficient information to 
     the Secretary for the Secretary to ensure that the award 
     funds are spent efficiently and effectively; and
       (3) a market exists for the technology being demonstrated 
     or applied, as evidenced by statements of interest in writing 
     from potential purchasers of the technology.
       (d) Federal Share.--The Federal share of the cost of a coal 
     or related technology project funded by the Secretary shall 
     not exceed 50 percent.
       (e) Applicability.--Neither the use of any particular 
     technology, nor the achievement of any emission reduction, by 
     any facility receiving assistance under this title shall be 
     taken into account for purposes of making any determination 
     under the Clean Air Act in applying the provisions of that 
     Act to a facility not receiving assistance under this title, 
     including any determination concerning new source performance 
     standards, lowest achievable emission rate, best available 
     control technology, or any other standard, requirement, or 
     limitation.

     SEC. 5007. STUDY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, and once every 2 years thereafter 
     through 2016, the Secretary, in cooperation with other 
     appropriate Federal agencies, shall transmit to the Committee 
     on Energy and Commerce and the Committee on Science of the 
     House of Representatives, and to the Senate, a report 
     containing the results of a study to--
       (1) identify efforts (and the costs and periods of time 
     associated with those efforts) that, by themselves or in 
     combination with other efforts, may be capable of achieving 
     the cost and performance goals;
       (2) develop recommendations for the Department of Energy to 
     promote the efforts identified under paragraph (1); and
       (3) develop recommendations for additional authorities 
     required to achieve the cost and performance goals.
       (b) Expert Advice.--In carrying out this section, the 
     Secretary shall give due weight to the expert advice of 
     representatives of the entities described in section 5004(b).

                               DIVISION F

     SEC. 6001. SHORT TITLE.

       This division may be cited as the ``Energy Security Act''.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

     SEC. 6101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS 
                   TO DETERMINE CAPABILITY TO SUPPORT NEW 
                   PIPELINES OR OTHER TRANSMISSION FACILITIES.

       (a) In General.--Within one year after the date of 
     enactment of this Act, the head of each Federal agency that 
     has authorized a right-of-way across Federal lands for 
     transportation of energy supplies or transmission of 
     electricity shall review each such right-of-way and submit a 
     report to the Secretary of Energy and the Chairman of the 
     Federal Energy Regulatory Commission regarding--
       (1) whether the right-of-way can be used to support new or 
     additional capacity; and
       (2) what modifications or other changes, if any, would be 
     necessary to accommodate such additional capacity.
       (b) Consultations and Considerations.--In performing the 
     review, the head of each agency shall--
       (1) consult with agencies of State, tribal, or local units 
     of government as appropriate; and
       (2) consider whether safety or other concerns related to 
     current uses might preclude the availability of a right-of-
     way for additional or new transportation or transmission 
     facilities, and set forth those considerations in the report.

     SEC. 6102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL 
                   FEDERAL PUBLIC LANDS.

       (a) Inventory Requirement.--The Secretary of the Interior, 
     in consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall conduct an inventory of the energy 
     production potential of all Federal public lands other than 
     national park lands and lands in any wilderness area, with 
     respect to wind, solar, coal, and geothermal power 
     production.
       (b) Limitations.--
       (1) In general.--The Secretary shall not include in the 
     inventory under this section the matters to be identified in 
     the inventory under section 604 of the Energy Act of 2000 (42 
     U.S.C. 6217).
       (2) Wind and solar power.--The inventory under this 
     section--
       (A) with respect to wind power production shall be limited 
     to sites having a mean average wind speed--
       (i) exceeding 12.5 miles per hour at a height of 33 feet; 
     and
       (ii) exceeding 15.7 miles per hour at a height of 164 feet; 
     and
       (B) with respect to solar power production shall be limited 
     to areas rated as receiving 450 watts per square meter or 
     greater.

[[Page H5099]]

       (c) Examination of Restrictions and Impediments.--The 
     inventory shall identify the extent and nature of any 
     restrictions or impediments to the development of such energy 
     production potential.
       (d) Geothermal Power.--The inventory shall include an 
     update of the 1978 Assessment of Geothermal Resources by the 
     United States Geological Survey.
       (e) Completion and Updating.--The Secretary--
       (1) shall complete the inventory by not later than 2 years 
     after the date of the enactment of this Act; and
       (2) shall update the inventory regularly thereafter.
       (f) Reports.--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. 6103. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO 
                   EMERGING ENERGY TECHNOLOGY.

       (a) In General.--Each Federal agency shall carry out a 
     review of its regulations and standards to determine those 
     that act as a barrier to market entry for emerging energy-
     efficient technologies, including fuel cells, combined heat 
     and power, and distributed generation (including small-scale 
     renewable energy).
       (b) Report to Congress.--No later than 18 months after date 
     of enactment of this Act, each agency shall provide a report 
     to the Congress and the President detailing all regulatory 
     barriers to emerging energy-efficient technologies, along 
     with actions the agency intends to take, or has taken, to 
     remove such barriers.
       (c) Periodic Review.--Each agency shall subsequently review 
     its regulations and standards in this manner no less 
     frequently than every 5 years, and report their findings to 
     the Congress and the President. Such reviews shall include a 
     detailed analysis of all agency actions taken to remove 
     existing barriers to emerging energy technologies.

     SEC. 6104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF 
                   INTERSTATE NATURAL GAS PIPELINE PROJECTS.

       (a) In General.--The Secretary of Energy, in coordination 
     with the Federal Energy Regulatory Commission, shall 
     establish an administrative interagency task force to develop 
     an interagency agreement to expedite and facilitate the 
     environmental review and permitting of interstate natural gas 
     pipeline projects.
       (b) Task Force Members.--The task force shall include a 
     representative of each of the Bureau of Land Management, the 
     United States Fish and Wildlife Service, the Army Corps of 
     Engineers, the Forest Service, the Environmental Protection 
     Agency, the Advisory Council on Historic Preservation, and 
     such other agencies as the Secretary of Energy and the 
     Federal Energy Regulatory Commission consider appropriate.
       (c) Terms of Agreement.--The interagency agreement shall 
     require that agencies complete their review of interstate 
     pipeline projects within a specific period of time after 
     referral of the matter by the Federal Energy Regulatory 
     Commission.
       (d) Submittal of Agreement.--The Secretary of Energy shall 
     submit a final interagency agreement under this section to 
     the Congress by not later than 6 months after the effective 
     date of this section.

     SEC. 6105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF 
                   FEDERAL LANDS.

       (a) Sense of the Congress.--It is the sense of Congress 
     that Federal land managing agencies should enhance the use of 
     energy efficient technologies in the management of natural 
     resources.
       (b) Energy Efficient Buildings.--To the extent economically 
     practicable, the Secretary of the Interior 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, and 
     other public lands and resources managed by such Secretaries.
       (c) Energy Efficient Vehicles.--To the extent economically 
     practicable, the Secretary of the Interior 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, and other 
     public lands and managed by the Secretaries.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

     SEC. 6201. SHORT TITLE.

       This subtitle may be referred to as the ``Royalty Relief 
     Extension Act of 2001''.

     SEC. 6202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA 
                   OF THE GULF OF MEXICO.

       (a) In General.--For all tracts located in water depths of 
     greater than 200 meters in the Western and Central Planning 
     Area of the Gulf of Mexico, including that portion of the 
     Eastern Planning Area of the Gulf of Mexico encompassing 
     whole lease blocks lying west of 87 degrees, 30 minutes West 
     longitude, any oil or gas lease sale under the Outer 
     Continental Shelf Lands Act occurring within 2 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 (30 U.S.C. 1337(a)(1)(H)), except 
     that the suspension of royalties shall be set at a volume of 
     not less than the following:
       (1) 5 million barrels of oil equivalent for each lease in 
     water depths of 400 to 800 meters.
       (2) 9 million barrels of oil equivalent for each lease in 
     water depths of 800 to 1,600 meters.
       (3) 12 million barrels of oil equivalent for each lease in 
     water depths greater than 1,600 meters.
       (b) Relationship to Existing Authority.--Except as 
     expressly provided in this section, nothing in this section 
     is intended to limit the authority of the Secretary of the 
     Interior under the Outer Continental Shelf Lands Act (43 
     U.S.C. 1301 et seq.) to provide royalty suspension.

     SEC. 6203. SAVINGS CLAUSE.

       Nothing in this subtitle shall be construed to affect any 
     offshore pre-leasing, leasing, or development moratorium, 
     including any moratorium applicable to the Eastern Planning 
     Area of the Gulf of Mexico located off the Gulf Coast of 
     Florida.

     SEC. 6204. ANALYSIS OF GULF OF MEXICO FIELD SIZE 
                   DISTRIBUTION, INTERNATIONAL COMPETITIVENESS, 
                   AND INCENTIVES FOR DEVELOPMENT.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Energy shall enter into appropriate arrangements 
     with the National Academy of Sciences to commission the 
     Academy to perform the following:
       (1) Conduct an analysis and review of existing Gulf of 
     Mexico oil and natural gas resource assessments, including--
       (A) analysis and review of assessments recently performed 
     by the Minerals Management Service, the 1999 National 
     Petroleum Council Gas Study, the Department of Energy's 
     Offshore Marginal Property Study, and the Advanced Resources 
     International, Inc. Deepwater Gulf of Mexico model; and
       (B) evaluation and comparison of the accuracy of 
     assumptions of the existing assessments with respect to 
     resource field size distribution, hydrocarbon potential, and 
     scenarios for leasing, exploration, and development.
       (2) Evaluate the lease terms and conditions offered by the 
     Minerals Management Service for Lease Sale 178, and compare 
     the financial incentives offered by such terms and conditions 
     to financial incentives offered by the terms and conditions 
     that apply under leases for other offshore areas that are 
     competing for the same limited offshore oil and gas 
     exploration and development capital, including offshore areas 
     of West Africa and Brazil.
       (3) Recommend what level of incentives for all water depths 
     are appropriate in order to ensure that the United States 
     optimizes the domestic supply of oil and natural gas from the 
     offshore areas of the Gulf of Mexico that are not subject to 
     current leasing moratoria. Recommendations under this 
     paragraph should be made in the context of the importance of 
     the oil and natural gas resources of the Gulf of Mexico to 
     the future energy and economic needs of the United States.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     submit a report to the Committee on Resources in the House of 
     Representatives and the Committee on Energy and Natural 
     Resources in the Senate, summarizing the findings of the 
     National Academy of Sciences pursuant to subsection (a) and 
     providing recommendations of the Secretary for new policies 
     or other actions that could help to further increase oil and 
     natural gas production from the Gulf of Mexico.

       Subtitle B--Improvements to Federal Oil and Gas Management

     SEC. 6221. SHORT TITLE.

       This subtitle may be cited as the ``Federal Oil and Gas 
     Lease Management Improvement Demonstration Program Act of 
     2001''.

     SEC. 6222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE 
                   OPERATIONS.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Agriculture shall jointly undertake a study of 
     the impediments to efficient oil and gas leasing and 
     operations on Federal onshore lands in order to identify 
     means by which unnecessary impediments to the expeditious 
     exploration and production of oil and natural gas on such 
     lands can be removed.
       (b) Contents.--The study under subsection (a) shall include 
     the following:
       (1) A review of the process by which Federal land managers 
     accept or reject an offer to lease, including the timeframes 
     in which such offers are acted upon, the reasons for any 
     delays in acting upon such offers, and any recommendations 
     for expediting the response to such offers.
       (2) A review of the approval process for applications for 
     permits to drill, including the timeframes in which such 
     applications are approved, the impact of compliance with 
     other Federal laws on such timeframes, any other reasons for 
     delays in making such approvals, and any recommendations for 
     expediting such approvals.
       (3) A review of the approval process for surface use plans 
     of operation, including the timeframes in which such 
     applications are approved, the impact of compliance with 
     other Federal laws on such timeframes, any other reasons for 
     delays in making such approvals, and any recommendations for 
     expediting such approvals.
       (4) A review of the process for administrative appeal of 
     decisions or orders of officers

[[Page H5100]]

     or employees of the Bureau of Land Management with respect to 
     a Federal oil or gas lease, including the timeframes in which 
     such appeals are heard and decided, any reasons for delays in 
     hearing or deciding such appeals, and any recommendations for 
     expediting the appeals process.
       (c) Report.--The Secretaries shall report the findings and 
     recommendations resulting from the study required by this 
     section to the Committee on Resources of the House of 
     Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act.

     SEC. 6223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

       (a) In General.--The Secretary shall ensure that 
     unwarranted denials and stays of lease issuance and 
     unwarranted restrictions on lease operations are eliminated 
     from the administration of oil and natural gas leasing on 
     Federal land.
       (b) Land Designated for Multiple Use.--Federal land 
     available for oil and natural gas leasing under any Bureau of 
     Land Management resource management plan or Forest Service 
     leasing analysis shall be available without lease 
     stipulations more stringent than restrictions on surface use 
     and operations imposed under the laws (including regulations) 
     of the oil and natural gas conservation authority of the 
     State in which the lands are located, unless the Secretary 
     includes in the decision approving the management plan or 
     leasing analysis or in the Secretary's acceptance of an offer 
     to lease a written explanation why more stringent 
     stipulations are warranted.
       (c) Rejection of Offer To Lease.--
       (1) In general.--If the Secretary rejects an offer to lease 
     Federal lands for oil or natural gas development on the 
     ground that the land is unavailable for oil and natural gas 
     leasing, the Secretary shall provide a written, detailed 
     explanation of the reasons the land is unavailable for 
     leasing.
       (2) Previous resource management decision.--If the 
     determination of unavailability is based on a previous 
     resource management decision, the explanation shall include a 
     careful assessment of whether the reasons underlying the 
     previous decision are still persuasive.
       (3) Segregation of available land from unavailable land.--
     The Secretary may not reject an offer to lease Federal land 
     for oil and natural gas development that is available for 
     such leasing on the ground that the offer includes land 
     unavailable for leasing. The Secretary shall segregate 
     available land from unavailable land, on the offeror's 
     request following notice by the Secretary, before acting on 
     the offer to lease.
       (d) Disapproval or Required Modification of Surface Use 
     Plans of Operations and Application for Permit To Drill.--The 
     Secretary shall provide a written, detailed explanation of 
     the reasons for disapproving or requiring modifications of 
     any surface use plan of operations or application for permit 
     to drill with respect to oil or natural gas development on 
     Federal lands.

     SEC. 6224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.

       Notwithstanding sections 304 and 504 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1734, 1764) and 
     section 9701 of title 31, United States Code, the Secretary 
     shall not recover the Secretary's costs with respect to 
     applications and other documents relating to oil and gas 
     leases.

     SEC. 6225. CONSULTATION WITH SECRETARY OF AGRICULTURE.

       Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) 
     is amended to read as follows:
       ``(h)(1) In issuing any lease on National Forest System 
     lands reserved from the public domain, the Secretary of the 
     Interior shall consult with the Secretary of Agriculture in 
     determining stipulations on surface use under the lease.
       ``(2)(A) A lease on lands referred to in paragraph (1) may 
     not be issued if the Secretary of Agriculture determines, 
     after consultation under paragraph (1), that the terms and 
     conditions of the lease, including any prohibition on surface 
     occupancy for lease operations, will not be sufficient to 
     adequately protect such lands under the National Forest 
     Management Act of 1976 (16 U.S.C. 1600 et seq.).
       ``(B) The authority of the Secretary of Agriculture under 
     this paragraph may be delegated only to the Undersecretary of 
     Agriculture for Natural Resources and Environment.''.

                       Subtitle C--Miscellaneous

     SEC. 6231. OFFSHORE SUBSALT DEVELOPMENT.

       Section 5 of the Outer Continental Shelf Lands Act of 1953 
     (43 U.S.C. 1334) is amended by adding at the end the 
     following:
       ``(k) Suspension of Operations for Subsalt Exploration.--
     Notwithstanding any other provision of law or regulation, to 
     prevent waste caused by the drilling of unnecessary wells and 
     to facilitate the discovery of additional hydrocarbon 
     reserves, the Secretary may grant a request for a suspension 
     of operations under any lease to allow the reprocessing and 
     reinterpretation of geophysical data to identify and define 
     drilling objectives beneath allocthonus salt sheets.''.

     SEC. 6232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.

       (a) Applicability of Section.--Notwithstanding any other 
     provision of law, the provisions of this section shall apply 
     to all royalty in kind accepted by the Secretary of the 
     Interior under any Federal oil or gas lease or permit under 
     section 36 of the Mineral Leasing Act (30 U.S.C. 192), 
     section 27 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1353), or any other mineral leasing law, in the period 
     beginning on the date of enactment of this Act through 
     September 30, 2006.
       (b) Terms and Conditions.--All royalty accruing to the 
     United States under any Federal oil or gas lease or permit 
     under the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
     shall, on the demand of the Secretary of the Interior, be 
     paid in oil or gas. If the Secretary of the Interior makes 
     such a demand, the following provisions apply to such 
     payment:
       (1) Delivery by, or on behalf of, the lessee of the royalty 
     amount and quality due under the lease satisfies the lessee's 
     royalty obligation for the amount delivered, except that 
     transportation and processing reimbursements paid to, or 
     deductions claimed by, the lessee shall be subject to review 
     and audit.
       (2) Royalty production shall be placed in marketable 
     condition by the lessee at no cost to the United States.
       (3) The Secretary of the Interior may--
       (A) sell or otherwise dispose of any royalty oil or gas 
     taken in kind (other than oil or gas taken under section 
     27(a)(3) of the Outer Continental Shlef Lands Act (43 U.S.C. 
     1353(a)(3)) for not less than the market price; and
       (B) transport or process any oil or gas royalty taken in 
     kind.
       (4) The Secretary of the Interior may, notwithstanding 
     section 3302 of title 31, United States Code, retain and use 
     a portion of the revenues from the sale of oil and gas 
     royalties taken in kind that otherwise would be deposited to 
     miscellaneous receipts, without regard to fiscal year 
     limitation, or may use royalty production, to pay the cost 
     of--
       (A) transporting the oil or gas,
       (B) processing the gas, or
       (C) disposing of the oil or gas.
       (5) The Secretary may not use revenues from the sale of oil 
     and gas royalties taken in kind to pay for personnel, travel, 
     or other administrative costs of the Federal Government.
       (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 of the Interior 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) at the discretion of the Secretary of the Interior, 
     allow the lessee to deduct such transportation or processing 
     costs in reporting and paying royalties in value for other 
     Federal oil and gas leases.
       (d) Benefit to the United States Required.--The Secretary 
     may receive oil or gas royalties in kind only if the 
     Secretary determines that receiving such royalties provides 
     benefits to the United States greater than or equal to those 
     that would be realized under a comparable royalty in value 
     program.
       (e) Report to Congress.--For each of the fiscal years 2002 
     through 2006 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 of 
     the Interior shall provide a report to the Congress 
     describing--
       (1) the methodology or methodologies used by the Secretary 
     to determine compliance with subsection (d), including 
     performance standards for comparing amounts received by the 
     United States derived from such royalties in kind to amounts 
     likely to have been received had royalties been taken in 
     value;
       (2) 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;
       (3) 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; and
       (4) 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 (30 U.S.C. 1337(g)) of 
     revenues derived from the sale of royalty production taken in 
     kind from a lease, the Secretary of the Interior shall deduct 
     amounts paid or deducted under subsections (b)(4) and (c), 
     and shall deposit such amounts to miscellaneous receipts.
       (2) Accounting for deductions.--If the Secretary of the 
     Interior 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 of the 
     Interior--
       (1) shall consult with a State before conducting a royalty 
     in kind program under this title within the State, and may 
     delegate management of any portion of the Federal royalty in 
     kind program to such State except as otherwise prohibited by 
     Federal law; and
       (2) shall consult annually with any State from which 
     Federal oil or gas royalty is

[[Page H5101]]

     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 which 
     would be realized under a comparable royalty in value 
     program.
       (h) Provisions for Small Refineries.--
       (1) Preference.--If the Secretary of the Interior 
     determines that sufficient supplies of crude oil are not 
     available in the open market to refineries not having their 
     own source of supply for crude oil, the Secretary may grant 
     preference to such refineries in the sale of any royalty oil 
     accruing or reserved to the United States under Federal oil 
     and gas leases issued under any mineral leasing law, for 
     processing or use in such refineries at private sale at not 
     less than the market price.
       (2) Proration among refineries in production area.--In 
     disposing of oil under this subsection, the Secretary of the 
     Interior may, at the discretion of the Secretary, prorate 
     such oil among such refineries 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 department or agency 
     of the United States.
       (2) Offshore royalty.--Any royalty oil or gas taken in kind 
     from Federal oil and gas leases on the Outer Continental 
     Shelf may be disposed of only under section 27 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1353).
       (j) Preference for Federal Low-Income Energy Assistance 
     Programs.--In disposing of royalty oil or gas taken in kind 
     under this section, the Secretary may grant a preference to 
     any person, including any State or Federal agency, for the 
     purpose of providing additional resources to any Federal low-
     income energy assistance program.

     SEC. 6233. MARGINAL WELL PRODUCTION INCENTIVES.

       To enhance the economics of marginal oil and gas production 
     by increasing the ultimate recovery from marginal wells when 
     the cash price of West Texas Intermediate crude oil, as 
     posted on the Dow Jones Commodities Index chart, is less than 
     $15 per barrel for 180 consecutive pricing days or when the 
     price of natural gas delivered at Henry Hub, Louisiana, is 
     less than $2.00 per million British thermal units for 180 
     consecutive days, the Secretary shall reduce the royalty rate 
     as production declines for--
       (1) onshore oil wells producing less than 30 barrels per 
     day;
       (2) onshore gas wells producing less than 120 million 
     British thermal units per day;
       (3) offshore oil wells producing less than 300 barrels of 
     oil per day; and
       (4) offshore gas wells producing less than 1,200 million 
     British thermal units per day.

     SEC. 6234. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, 
                   DOCUMENTATION, AND STUDIES.

       The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended 
     by inserting after section 37 the following:


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

       ``Sec. 38. (a) In General.--The Secretary of the Interior 
     may reimburse a person who is a lessee, operator, operating 
     rights owner, or applicant for an oil or gas lease under this 
     Act for costs incurred by the person in preparing any 
     project-level analysis, documentation, or related study 
     required under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) with respect to the lease, through 
     royalty credits attributable to the lease, unit agreement, or 
     project area for which the analysis, documentation, or 
     related study is prepared.
       ``(b) Conditions.--The Secretary may provide reimbursement 
     under subsection (b) 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; and
       ``(3) the person maintains records of its costs in 
     accordance with regulations prescribed by the Secretary.''.
       (c) Application.--The amendments made by this section shall 
     apply with respect to any lease entered into before, on, or 
     after the date of the enactment of this Act.
       (d) Deadline for Regulations.--The Secretary shall issue 
     regulations implementing the amendments made by this section 
     by not later than 90 days after the date of the enactment of 
     this Act.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

     SEC. 6301. ROYALTY REDUCTION AND RELIEF.

       (a) Royalty Reduction.--Section 5(a) of the Geothermal 
     Steam Act of 1970 (30 U.S.C. 1004(a)) is amended by striking 
     ``not less than 10 per centum or more than 15 per centum'' 
     and inserting ``not more than 8 per centum''.
       (b) Royalty Relief.--
       (1) In general.--Notwithstanding section 5 of the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1004(a)) and any 
     provision of any lease under that Act, no royalty is required 
     to be paid--
       (A) under any qualified geothermal energy lease with 
     respect to commercial production of heat or energy from a 
     facility that begins such production in the 5-year period 
     beginning on the date of the enactment of this Act; or
       (B) on qualified expansion geothermal energy.
       (2) 3-year application.--Paragraph (1) applies only to 
     commercial production of heat or energy from a facility in 
     the first 3 years of such production.
       (c) Definitions.--In this section:
       (1) Qualified expansion geothermal energy.--The term 
     ``qualified expansion geothermal energy''--
       (A) subject to subparagraph (B), means geothermal energy 
     produced from a generation facility for which the rated 
     capacity is increased by more than 10 percent as a result of 
     expansion of the facility carried out in the 5-year period 
     beginning on the date of enactment of this Act; and
       (B) does not include the rated capacity of the generation 
     facility on the date of enactment of this Act.
       (2) Qualified geothermal energy lease.--The term 
     ``qualified geothermal energy lease'' means a lease under the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
       (A) that was executed before the end of the 5-year period 
     beginning on the date of the enactment of this Act; and
       (B) under which no commercial production of any form of 
     heat or energy occurred before the date of the enactment of 
     this Act.

     SEC. 6302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW 
                   TEMPERATURE GEOTHERMAL ENERGY RESOURCES.

       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 new subsection:
       ``(b) Exemption for Use of Low Temperature Resources.--
       ``(1) In general.--In lieu of any royalty or rental under 
     subsection (a), a lease for qualified development and direct 
     utilization of low temperature geothermal resources shall 
     provide for payment by the lessee of an annual fee of not 
     less than $100, and not more than $1,000, in accordance with 
     the schedule issued under paragraph (2).
       ``(2) Schedule.--The Secretary shall issue a schedule of 
     fees under this section under which a fee is based on the 
     scale of development and utilization to which the fee 
     applies.
       ``(3) Definitions.--In this subsection:
       ``(A) Low temperature geothermal resources.--The term `low 
     temperature geothermal resources' means geothermal steam and 
     associated geothermal resources having a temperature of less 
     than 195 degrees Fahrenheit.
       ``(B) Qualified development and direct utilization.--The 
     term `qualified development and direct utilization' means 
     development and utilization in which all products of 
     geothermal resources, other than any heat utilized, are 
     returned to the geothermal formation from which they are 
     produced.''.

     SEC. 6303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE 
                   LANDS.

       The Geothermal Steam Act of 1970 is amended--
       (1) in section 15(b) (30 U.S.C. 1014(b))--
       (A) by inserting ``(1)'' after ``(b)''; and
       (B) in paragraph (1) (as designated by subparagraph (A) of 
     this paragraph) in the first sentence--
       (i) by striking ``with the consent of, and'' and inserting 
     ``after consultation with the Secretary of Agriculture and''; 
     and
       (ii) by striking ``the head of that Department'' and 
     inserting ``the Secretary of Agriculture''; and
       (2) by adding at the end the following:
       ``(2)(A) A geothermal lease for lands withdrawn or acquired 
     in aid of functions of the Department of Agriculture may not 
     be issued if the Secretary of Agriculture, after the 
     consultation required by paragraph (1), determines that no 
     terms or conditions, including a prohibition on surface 
     occupancy for lease operations, would be sufficient to 
     adequately protect such lands under the National Forest 
     Management Act of 1976 (16 U.S.C. 1600 et seq.).
       ``(B) The authority of the Secretary of Agriculture under 
     this paragraph may be delegated only to the Undersecretary of 
     Agriculture for Natural Resources and Environment.''.

     SEC. 6304. DEADLINE FOR DETERMINATION ON PENDING 
                   NONCOMPETITIVE LEASE APPLICATIONS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of the Interior shall, with respect 
     to each application pending on the date of the enactment of 
     this Act for a lease under the Geothermal Steam Act of 1970 
     (30 U.S.C. 1001 et seq.), issue a final determination of--
       (1) whether or not to conduct a lease sale by competitive 
     bidding; and
       (2) whether or not to award a lease without competitive 
     bidding.

     SEC. 6305. OPENING OF PUBLIC LANDS UNDER MILITARY 
                   JURISDICTION.

       (a) In General.--Except as otherwise provided in the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) and 
     other provisions of Federal law applicable to development of 
     geothermal energy resources within public lands, all public 
     lands under the jurisdiction of a Secretary of a military 
     department shall be open to the operation of such laws and 
     development and utilization of geothermal steam and 
     associated geothermal resources, as that term is defined in 
     section 2 of the Geothermal Steam Act of 1970 (30 U.S.C.

[[Page H5102]]

     1001), without the necessity for further action by the 
     Secretary or the Congress.
       (b) Conforming Amendment.--Section 2689 of title 10, United 
     States Code, is amended by striking ``including public 
     lands,'' and inserting ``other than public lands,''.
       (c) Treatment of Existing Leases.--Upon the expiration of 
     any lease in effect on the date of the enactment of this Act 
     of public lands under the jurisdiction of a military 
     department for the development of any geothermal resource, 
     such lease may, at the option of the lessee--
       (1) be treated as a lease under the Geothermal Steam Act of 
     1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance 
     with such Act; or
       (2) be renewed in accordance with the terms of the lease, 
     if such renewal is authorized by such terms.
       (d) Regulations.--The Secretary of the Interior, with the 
     advice and concurrence of the Secretary of the military 
     department concerned, shall prescribe such regulations to 
     carry out this section as may be necessary. Such regulations 
     shall contain guidelines to assist in determining how much, 
     if any, of the surface of any lands opened pursuant to this 
     section may be used for purposes incident to geothermal 
     energy resources development and utilization.
       (e) Closure for Purposes of National Defense or Security.--
     In the event of a national emergency or for purposes of 
     national defense or security, the Secretary of the Interior, 
     at the request of the Secretary of the military department 
     concerned, shall close any lands that have been opened to 
     geothermal energy resources leasing pursuant to this section.

     SEC. 6306. APPLICATION OF AMENDMENTS.

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

     SEC. 6307. REVIEW AND REPORT TO CONGRESS.

       The Secretary of the Interior shall promptly review and 
     report to the Congress regarding the status of all moratoria 
     on and withdrawals from leasing under the Geothermal Steam 
     Act of 1970 (30 U.S.C. 1001 et seq.) of known geothermal 
     resources areas (as that term is defined in section 2 of that 
     Act (30 U.S.C. 1001), specifying for each such area whether 
     the basis for such moratoria or withdrawal still applies.

     SEC. 6308. 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:


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

       ``Sec. 30. (a) In General.--The Secretary of the Interior 
     may reimburse a person who is a lessee, operator, operating 
     rights owner, or applicant for a lease under this Act for 
     costs incurred by the person in preparing any project-level 
     analysis, documentation, or related study required under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the lease, through royalty credits 
     attributable to the lease, unit agreement, or project area 
     for which the analysis, documentation, or related study is 
     prepared.
       ``(b) Conditions.--The Secretary shall 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; and
       ``(3) the person maintains records of its costs in 
     accordance with regulations prescribed by the Secretary.''.
       (b) Application.--The amendments made by this section shall 
     apply with respect to any lease entered into before, on, or 
     after the date of the enactment of this Act.
       (c) Deadline for Regulations.--The Secretary shall issue 
     regulations implementing the amendments made by this section 
     by not later than 90 days after the date of the enactment of 
     this Act.

                          TITLE IV--HYDROPOWER

     SEC. 6401. STUDY AND REPORT ON INCREASING ELECTRIC POWER 
                   PRODUCTION CAPABILITY OF EXISTING FACILITIES.

       (a) In General.--The Secretary of the Interior shall 
     conduct a study of the potential for increasing electric 
     power production capability at existing facilities under the 
     administrative jurisdiction of the Secretary.
       (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 Secretary shall submit to the Congress a 
     report on the findings, conclusions, and recommendations of 
     the study under this section by not later than 12 months 
     after the date of enactment of this Act. The Secretary shall 
     include in the report the following:
       (1) The identifications, descriptions, and estimations 
     referred to in subsection (b).
       (2) A description of activities the Secretary is currently 
     conducting or considering, or that could be considered, to 
     produce additional hydroelectric power from each identified 
     facility.
       (3) A summary of action that has already been taken by the 
     Secretary 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.
       (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.
       (7) A description of actions that are planned, underway, or 
     might reasonably be considered to increase hydroelectric 
     power production by performing generator uprates and rewinds.
       (8) The impact of increased hydroelectric power production 
     on irrigation, fish, wildlife, Indian tribes, river health, 
     water quality, navigation, recreation, fishing, and flood 
     control.
       (9) Any additional recommendations the Secretary considers 
     advisable to increase hydroelectric power production from, 
     and reduce costs and improve efficiency at, facilities under 
     the jurisdiction of the Secretary.

     SEC. 6402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT, 
                   CALIFORNIA.

       (a) In General.--The Secretary of the Interior may install 
     a powerformer at the Bureau of Reclamation Folsom power plant 
     in Folsom, California, to replace a generator and transformer 
     that are due for replacement due to age.
       (b) Reimbursable Costs.--Costs incurred by the United 
     States for installation of a powerformer under this section 
     shall be treated as reimbursable costs and shall bear 
     interest at current long-term borrowing rates of the United 
     States Treasury at the time of acquisition.
       (c) Local Cost Sharing.--In addition to reimbursable costs 
     under subsection (b), the Secretary shall seek contributions 
     from power users toward the costs of the powerformer and its 
     installation.

     SEC. 6403. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL 
                   EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.

       (a) In General.--The Secretary of Interior shall conduct a 
     study of operational methods and water scheduling techniques 
     at all hydroelectric power plants under the administrative 
     jurisdiction of the Secretary that have an electric power 
     production capacity greater than 50 megawatts, to--
       (1) determine whether such power plants and associated 
     river systems are operated so as to maximize energy and 
     capacity capabilities; and
       (2) identify measures that can be taken to improve 
     operational flexibility at such plants to achieve such 
     maximization.
       (b) Report.--The Secretary shall submit 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, including a summary of the 
     determinations and identifications under paragraphs (1) and 
     (2) of subsection (a).
       (c) Cooperation by Federal Power Marketing 
     Administrations.--The Secretary shall coordinate with the 
     Administrator of each Federal power marketing administration 
     in--
       (1) determining how the value of electric power produced by 
     each hydroelectric power facility that produces power 
     marketed by the administration can be maximized; and
       (2) implementing measures identified under subsection 
     (a)(2).
       (d) Limitation on Implementation of Measures.--
     Implementation under subsections (a)(2) and (b)(2) shall be 
     limited to those measures that can be implemented within the 
     constraints imposed on Department of the Interior facilities 
     by other uses required by law.

     SEC. 6404. 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.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

     SEC. 6501. SHORT TITLE.

       This title may be cited as the ``Arctic Coastal Plain 
     Domestic Energy Security Act of 2001''.

     SEC. 6502. DEFINITIONS.

       In this title:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as such in the map entitled ``Arctic National 
     Wildlife

[[Page H5103]]

     Refuge'', dated August 1980, as referenced in section 1002(b) 
     of the Alaska National Interest Lands Conservation Act of 
     1980 (16 U.S.C. 3142(b)(1)), comprising approximately 
     1,549,000 acres.
       (2) Secretary.--The term ``Secretary'', except as otherwise 
     provided, means the Secretary of the Interior or the 
     Secretary's designee.

     SEC. 6503. 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 
     title 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.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (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 of 1980 (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 
     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 
     6502(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. 6504. 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 enactment of this title; 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. 6505. 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 6504 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. 6506. 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 6503(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;

[[Page H5104]]

       (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. 6507. 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 6503, 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; and
       (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.
       (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 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--
       (A) the Secretary determines, after affording an 
     opportunity for public comment and review, that special 
     circumstances exist necessitating that exploration activities 
     be conducted at other times of the year; and
       (B) 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 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.

     SEC. 6508. 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 division 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 
     division 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.

[[Page H5105]]

     SEC. 6509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) Exemption.--Title XI of the Alaska National Interest 
     Lands Conservation Act of 1980 (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 6503(g) provisions granting rights-
     of-way and easements described in subsection (a) of this 
     section.

     SEC. 6510. 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 2 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); and
       (2) to the Arctic Slope Regional Corporation the subsurface 
     estate beneath such surface estate pursuant to the August 9, 
     1983, agreement between the Arctic Slope Regional Corporation 
     and the United States of America.

     SEC. 6511. 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; and
       (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.
       (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 $10,000,000.
       (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.

     SEC. 6512. REVENUE ALLOCATION.

       (a) In General.--Notwithstanding section 6504, the Mineral 
     Leasing Act (30 U.S.C. 181 et seq.), or any other law--
       (1) 50 percent of the adjusted bonus, rental, and royalty 
     revenues from oil and gas leasing and operations authorized 
     under this title shall be paid to the State of Alaska; and
       (2) the balance of such revenues shall be deposited into 
     the Treasury as miscellaneous receipts.
       (b) Adjustments.--Adjustments to bonus, rental, and royalty 
     amounts from oil and gas leasing and operations authorized 
     under this title shall be made as necessary for overpayments 
     and refunds from lease revenues received in current or 
     subsequent periods, prior to distribution of such revenues 
     pursuant to this section.
       (c) Payments to State.--Payments to the State of Alaska 
     under this section shall be made quarterly.

   TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR

     SEC. 6601. ENERGY CONSERVATION BY THE DEPARTMENT OF THE 
                   INTERIOR.

       (a) In General.--The Secretary of the Interior shall--
       (1) conduct a study to identify, evaluate, and recommend 
     opportunities for conserving energy by reducing the amount of 
     energy used by facilities of the Department of the Interior; 
     and
       (2) wherever feasible and appropriate, reduce the use of 
     energy from traditional sources by encouraging use of 
     alternative energy sources, including solar power and power 
     from fuel cells, throughout such facilities and the public 
     lands of the United States.
       (b) Reports.--The Secretary shall submit to the Congress--
       (1) by not later than 90 days after the date of the 
     enactment of this Act, a report containing the findings, 
     conclusions, and recommendations of the study under 
     subsection (a)(1); and
       (2) by not later than December 31 each year, an annual 
     report describing progress made in--
       (A) conserving energy through opportunities recommended in 
     the report under paragraph (1); and
       (B) encouraging use of alternative energy sources under 
     subsection (a)(2).

                            TITLE VII--COAL

     SEC. 6701. LIMITATION ON FEES WITH RESPECT TO COAL LEASE 
                   APPLICATIONS AND DOCUMENTS.

       Notwithstanding sections 304 and 504 of the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1734, 1764) and 
     section 9701 of title 31, United States Code, the Secretary 
     shall not recover the Secretary's costs with respect to 
     applications and other documents relating coal leases.

     SEC. 6702. MINING PLANS.

       Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 
     202a(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) The Secretary may establish a period of more than 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 resources.''.

     SEC. 6703. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

       (a) In General.--Section 7(b) of the Mineral Leasing Act of 
     1920 (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 based on the 
     average price for coal sold in the spot market from the same 
     region during the last month of each applicable continued 
     operation year.
       ``(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. 6704. 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,''.

[[Page H5106]]

               TITLE VIII--INSULAR AREAS ENERGY SECURITY

     SEC. 6801. 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 
     (Public Law 96-597; 94 Stat. 3480-3481), 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, 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 chief executive officer 
     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 2010 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 May 31, 2003, 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 territories.--
       ``(A) In general.--The Secretary of the Interior is 
     authorized to make grants to governments of territories of 
     the United States to carry out eligible projects to protect 
     electric power transmission and distribution lines in such 
     territories from damage caused by hurricanes and typhoons.
       ``(B) Eligible projects.--The Secretary may award grants 
     under subparagraph (A) only to governments of territories 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 one or more of 
     the territories 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 one 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 territory 
     where the project is to be carried out for development or 
     hazard mitigation for that territory.
       ``(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 is 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.''.

  The CHAIRMAN pro tempore. No further amendment is in order except 
those printed in part B of the report. Each amendment may be offered 
only in the order printed, may be offered only by a Member designated 
in the report, shall be considered read, debatable for the time 
specified in the report, equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question.
  It is now in order to consider amendment No. 1 printed in part B of 
House Report 107-178.


                 Amendment No. 1 Offered by Mr. Tauzin

  Mr. TAUZIN. Mr. Chairman, I offer an amendment.
  The CHAIRMAN pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. Tauzin:
       Page 10, after the table of contents, insert the following 
     and make the necessary conforming changes in the table of 
     contents:

     SEC. 2. ENERGY POLICY.

       It shall be the sense of the Congress that the United 
     States should take all actions necessary in the areas of 
     conservation, efficiency, alternative source, technology 
     development, and domestic production to reduce the United 
     States dependence on foreign energy sources from 56 percent 
     to 45 percent by January 1, 2012, and to reduce United States 
     dependence on Iraqi energy sources from 700,000 barrels per 
     day to 250,000 barrels per day by January 1, 2012.
       Page 36, line 15, insert ``or encourage'' after 
     ``discourage''.
       Page 36, lines 16 and 17, strike ``; and'' and insert 
     ``when compared to structures of the same physical 
     description and occupancy in compatible geographic 
     locations;''.
       Page 36, lines 18 through 23, strike paragraph (2) and 
     insert the following:
       (2) the extent to which education could increase the 
     conservation of low-income households who opt to receive 
     supplemental income instead of Low-Income Home Energy 
     Assistance funds;
       (3) the benefit in energy efficiency and energy savings 
     that can be achieved through the annual maintenance of 
     heating and cooling appliances in the homes of those 
     receiving Low-Income Home Energy Assistance funds; and
       (4) the loss of energy conservation that results from 
     structural inadequacies in a structure that is unhealthy, not 
     energy efficient, and environmentally unsound and that 
     receives Low-Income Home Energy Assistance funds for 
     weatherization.
       Page 81, after line 12, insert the following new section, 
     and make the necessary change to the table of contents:

     SEC. 309. STUDY TO DETERMINE FEASIBILITY OF DEVELOPING 
                   COMMERCIAL NUCLEAR ENERGY PRODUCTION FACILITIES 
                   AT EXISTING DEPARTMENT OF ENERGY SITES.

       (a) In General.--The Secretary of Energy shall conduct a 
     study to determine the feasibility of developing commercial 
     nuclear energy production facilities at Department of Energy 
     sites in existence on the date of enactment of this Act, 
     including--
       (1) options for how and where nuclear power plants can be 
     developed on existing Department of Energy sites;
       (2) estimates on cost savings to the Federal Government 
     that may be realized by locating new nuclear power plants on 
     Federal sites;
       (3) the feasibility of incorporating new technology into 
     nuclear power plants located on Federal sites;
       (4) potential improvements in the licensing and safety 
     oversight procedures of the effects of nuclear waste 
     management policies and projects as a result of locating 
     nuclear power plants located on Federal sites; and
       (6) any other factors that the Secretary believes would be 
     relevant in making the determination.
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study under subsection 
     (a).
       In section 603 of title V of division A, on page 88, line 
     11, strike ``; and'' and insert a semicolon.
       Page 88, line 17, strike the period and insert ``; and''.
       Page 88, after line 17, insert the following new paragraph:
       (8) the feasibility of providing incentives to promote 
     cleaner burning fuel.
       Page 92, after line 14, insert the following new sections, 
     and make the necessary changes to the table of contents:

     SEC. 603. STUDY OF ETHANOL FROM SOLID WASTE LOAN GUARANTEE 
                   PROGRAM.

       The Secretary of Energy shall conduct a study of the 
     feasibility of providing guarantees for loans by private 
     banking and investment institutions for facilities for the 
     processing and conversion of municipal solid waste and sewage 
     sludge into fuel ethanol and other commercial byproducts, and 
     not later than 90 days after the date of the enactment of 
     this Act shall transmit to the Congress a report on the 
     results of the study.

     SEC. 604. STUDY OF RENEWABLE FUEL CONTENT.

       (a) Study.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Energy shall jointly 
     conduct a

[[Page H5107]]

     study of the feasibility of developing a requirement that 
     motor vehicle fuel sold or introduced into commerce in the 
     United States in calendar year 2002 or any calendar year 
     thereafter by a refiner, blender, or importer shall, on a 6-
     month average basis, be comprised of a quantity of renewable 
     fuel, measured in gasoline-equivalent gallons. As part of 
     this study, the Administrator and Secretary shall evaluate 
     the use of a banking and trading credit system and the 
     feasibility and desirability of requiring an increasing 
     percentage of renewable fuel to be phased in over a 15-year 
     period.
       (b) Report to Congress.--Not later than 6 months after the 
     date of the enactment of this Act, the Administrator and the 
     Secretary shall transmit to the Congress a report on the 
     results of the study conducted under this section.
       Page 93, strike lines 3 through 12 and insert:

     SEC. 802. HISTORIC PIPELINES.

       Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) is 
     amended by adding at the end the following new subsection:
       ``(i) Notwithstanding the National Historic Preservation 
     Act, a transportation facility shall not be eligible for 
     inclusion on the National Register of Historic Places 
     unless--
       ``(1) the Commission has permitted the abandonment of the 
     transportation facility pursuant to subsection (b) of this 
     section, or
       ``(2) the owner of the facility has given written consent 
     to such eligibility.

     Any transportation facility deemed eligible for inclusion on 
     the National Register of Historic Places prior to the date of 
     enactment of this subsection shall no longer be eligible 
     unless the owner of the facility gives warrant consent to 
     such eligibility.''.
       Page 190, line 23, strike ``subsection'' and insert 
     ``section''.
       Page 220, lines 1 through 4, amend paragraph (1) to read as 
     follows:
       (1) $19,400,000 for fiscal year 2002, $14,800,000 for 
     fiscal year 2003, and $8,900,000 for fiscal year 2004 for 
     completion of construction of Project 98-G-304, Neutrinos at 
     the Main Injector, Fermi National Accelerator Laboratory;
       In section 6102(b)(1), strike ``42 U.S.C.'' and insert ``43 
     U.S.C.''.
       Page 437, after line 6, (in section 5006 of Division E 
     after subsection (c)) insert:
       (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 that 
     use coal as the primary feedstock as of the date of enactment 
     of this Act.
       Page 437, line 7, (in section 5006 of Division E) strike 
     ``(d)'' and insert ``(e)''.
       Page 437, line 10, (in section 5006 of Division E) strike 
     ``(e)'' and insert ``(f)''
       Page 438, after line 17, (after section 5007 of Division E) 
     insert the following new section and make the necessary 
     change to the table of contents:

     SEC. 5008. CLEAN COAL CENTERS OF EXCELLENCE.

       As part of the program authorized in section 5003, the 
     Secretary shall award competitive, merit-based grants to 
     universities for the establishment of Centers of Excellence 
     for Energy Systems of the Future. The Secretary shall provide 
     grants to universities that can slow the greatest potential 
     for advancing new clean coal technologies.
       Page 3, in the table of contents for Division A, 
     redesignate title VII relating to miscellaneous provisions as 
     title VIII.
       Page 93, line 13, (at the end of division A) strike ``VII'' 
     relating to miscellaneous provisions and insert ``VIII''.
       In Division A and in the table of contents for Division A, 
     renumber sections 601 through 604 as 501 through 504 
     respectively, renumber sections 701 and 702 as 601 and 602 
     respectively, renumber sections 801 and 802 as 701 and 702 
     respectively, and renumber sections 901 through 903 as 801 
     through 803 respectively.
       Page 433, line 13, strike ``(c)'' and insert ``(b)''.
       Page 444, after line 22, insert the following new section:

     SEC. 6106. EFFICIENT INFRASTRUCTURE DEVELOPMENT.

       (a) In General.--The Secretary of Energy and the Chairman 
     of the Federal Energy Regulatory Commission shall jointly 
     undertake a study of the location and extent of anticipated 
     demand growth for natural gas consumption in the Western 
     States, herein defined as the area covered by the Western 
     System Coordinating Council.
       (b) Contents.--The study under subsection (a) shall include 
     the following:
       (1) A review of natural gas demand forecasts by Western 
     State officials, such as the California Energy Commission and 
     the California Public Utilities Commission, which indicate 
     the forecasted levels of demand.
       (2) A review of the locations of proposed new natural gas-
     fired electric generation facilities currently in the 
     approval process in the Western States, and their forecasted 
     impact on natural gas demand.
       (3) A review of the locations of existing interstate 
     natural gas transmission pipelines, and interstate natural 
     gas pipelines currently in the planning stage or approval 
     process, throughout the Western States.
       (4) A review of the locations and capacity of intrastate 
     natural gas pipelines in the Western States.
       (5) Recommendations for the coordination of the development 
     of the natural gas infrastructure indicated in paragraphs (1) 
     through (4).
       (c) Report.--The Secretary shall report the findings and 
     recommendations resulting from the study required by this 
     section to the Committee on Energy and Commerce of the House 
     of Representatives and to the Committee of the House of 
     Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act. The Chairman of the Federal 
     Energy Regulatory Commission shall report on how the 
     Commission will factor these results into its review of 
     applications of interstate pipelines within the Western 
     States to the Committee on Energy and Commerce of the House 
     of Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act.
       In section 6223, amend subsection (b) to read as follows:
       (b) Preparation of Leasing Plan or Analysis.--In preparing 
     a management plan or leasing analysis for oil or natural gas 
     leasing on Federal lands administered by the Bureau of Land 
     Management or the Forest Service, the Secretary concerned 
     shall--
       (1) identify and review the restrictions on surface use and 
     operations imposed under the laws (including regulations) of 
     the State in which the lands are located;
       (2) consult with the appropriate State agency regarding the 
     reasons for the State restrictions identified under paragraph 
     (1);
       (3) identify any differences between the State restrictions 
     identified under paragraph (1) and any restrictions on 
     surface use and operations that would apply under the lease; 
     and
       (4) prepare and provide upon request a written explanation 
     of such differences.
       At the end of section 6223 add the following:
       (e) Preservation of Federal Authority.--Nothing in this 
     section or in any identification, review, or explanation 
     prepared under this section shall be construed--
       (1) to limit the authority of the Federal Government to 
     impose lease stipulations, restrictions, requirements, or 
     other terms that are different than those that apply under 
     State law; or
       (2) to affect the procedures that apply to judicial review 
     of actions taken under this subsection.
       In section 6225, in the quoted material--
       (1) in paragraph (2)(A), insert ``and consultation with the 
     Regional Forester having administrative jurisdiction over the 
     National Forest System lands concerned'' after ``under 
     paragraph (1)''; and
       (2) add at the end the following:
       ``(3) The Secretary of Agriculture shall include in the 
     record of decision for a determination under paragraph 
     (2)(A)--
       ``(A) any written statement regarding the determination 
     that is prepared by a Regional Forester consulted by the 
     Secretary under paragraph (2)(A) regarding the determination; 
     or
       ``(B) an explanation why such a statement by the Regional 
     Forester is not included.
       In Section 6303(2), in the quoted material--
       (1) in paragraph (2)(A), insert ``and consultation with any 
     Regional Forester having administrative jurisdiction over the 
     lands concerned'' after ``under paragraph (1)''; and
       (2) add at the end the following:
       ``(3) The Secretary of Agriculture shall include in the 
     record of decision for a determination under paragraph 
     (2)(A)--
       ``(A) any written statement regarding the determination 
     that is prepared by a Regional Forester consulted by the 
     Secretary under paragraph (2)(A) regarding the determination; 
     or
       ``(B) an explanation why such a statement by the Regional 
     Forester is not included.
       In section 6234--
       (1) insert ``(a) In General.--'' before the first sentence;
       (2) redesignate subsections (c) and (d) as subsections (b) 
     and (c); and
       (3) in the quoted material, strike the material preceding 
     subsection (b) and insert the following:


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

       ``Sec. 38. (a) In General.--The Secretary of the Interior 
     may, through royalty credits, reimburse a person who is a 
     lessee, operator, operating rights owner, or applicant for an 
     oil or gas lease under this Act for amounts paid by the 
     person for preparation by the Secretary (or a contractor or 
     other person selected by the Secretary) of any project-level; 
     analysis, documentation, or related study required under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the lease.
       In section 6308(a), in the quoted material, strike the 
     material preceding subsection (b) and insert the following:


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

       ``Sec. 38. (a) In General.--The Secretary of the Interior 
     may, through royalty credits, reimburse a person who is a 
     lessee, operator, operating rights owner, or applicant for a 
     lease under this Act for amounts paid by the person for 
     preparation by the Secretary (or a

[[Page H5108]]

     contractor or other person selected by the Secretary) of any 
     project-level analysis, documentation, or related study 
     required under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) with respect to the lease.
       Page 510, after line 8, insert the following new division, 
     and make the necessary changes to the table of contents:
                               DIVISION G

     SEC. 7101. BUY AMERICAN.

       No funds authorized under this Act shall be available to 
     any person or entity that has been convicted of violating the 
     Buy American Act (41 U.S.C. 10a-10c).

  The CHAIRMAN pro tempore. Pursuant to House Resolution 216, the 
gentleman from Louisiana (Mr. Tauzin) and the gentleman from West 
Virginia (Mr. Rahall) each will control 10 minutes.
  The Chair recognizes the gentleman from Louisiana (Mr. Tauzin).
  Mr. TAUZIN. Mr. Chairman, I yield myself such time as I may consume.
  The manager's amendment before us does two basic things: first, it 
makes a number of technical changes in H.R. 4 that the committees of 
jurisdiction have agreed upon. Secondly, it incorporates a number of 
the amendments to H.R. 4 that were originally filed with the Committee 
on Rules and we thought were deserving of inclusion in the base bill 
going forward.
  Most of these amendments are amendments that call for studies and for 
expanded research and for expanded scope of existing studies, many of 
them designed to examine the feasibility of new efficiencies and new 
energy savings that are critical to managing demand in our country.
  With respect to this latter category, I want to commend in particular 
the gentleman from Arizona (Mr. Shadegg) and the gentleman from 
Maryland (Mr. Wynn) of our committee, who worked in a bipartisan 
fashion to draft an amendment on historic pipelines. As you know, the 
National Historic Preservation Act was being interpreted to cover 
pipelines. This bill fixes that, but nevertheless incorporates those 
that wanted that designation and in fact have it.
  The bottom line is this amendment is primarily technical with the 
study amendments added. I would hope that we could have an easy 
approval of this amendment. I understand we have some objection to it.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Wisconsin (Mr. Kind), ranking member of the Subcommittee 
on Energy and Mineral Resources.
  Mr. KIND. Mr. Chairman, I thank the gentleman for yielding time.
  Mr. Chairman, as ranking member of the Subcommittee on Energy and 
Mineral Resources of the Committee on Resources, I reluctantly rise in 
opposition to the base bill.
  The American people know we have a long-term energy crisis and that 
we need to develop a comprehensive and balanced plan. A plan that finds 
21st century slolutions to deal with our 21st century energy needs. 
They were hoping we could work in a bipartisan fashion to accomplish 
it, but unfortunately this bill does not get us there.
  I am glad, however, that there were a couple of amendments made in 
order. We are going to have an honest debate on whether or not it makes 
sense to go into the Arctic National Wildlife Refuge to explore and 
drill for more oil. I am glad we are going to have an honest debate on 
increasing the fuel efficiency standards of our cars and our trucks in 
this country.
  But there were other important amendments, Mr. Chairman, that were 
not made in order that also deserve serious discussion. I, along with 
the ranking member on the Committee on Resources, the gentleman from 
West Virginia (Mr. Rahall), and the gentleman from Wisconsin (Mr. 
Petri), tried introducing an amendment talking about the oil royalty 
giveback provision of this bill, a multibillion-dollar giveback 
provision that we are about to give the oil industry to do what they 
are already doing. I do not know how many of my colleagues saw the 
front-page story in the Wall Street Journal on Tuesday which is titled: 
``Pumping Money, Major Oil Companies Struggle to Spend Huge Hoards of 
Cash.'' What the report indicates is that there is over $40 billion of 
cash reserves that the oil industry is sitting on right now trying to 
figure out a way of investing it and using it. That number is going to 
explode to multibillion dollars more accordingly to industry analysts. 
Yet we are on the verge with this energy plan of giving them back 
billions of dollars in oil royalty relief that even the Bush 
administration is not asking for.
  I think we also need to address some of the short-term energy 
problems that we have. I tried offering an amendment with the gentleman 
from California (Mr. George Miller) that would allow the Department of 
Interior to recover its costs associated with oil and gas leasing on 
the 95 percent of the public lands that are currently accessible and 
available for oil and gas drilling. If we want to deal with the backlog 
of leasing that is existing in the Department of Interior, let us allow 
them to recover the costs in order to expedite that process to deal 
with our short-term energy needs. But that amendment was not made in 
order.
  Unfortunately this bill is not balanced. I urge a ``no'' vote.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 2 minutes to my 
colleague and dear friend, the gentleman from Louisiana (Mr. Vitter).
  Mr. VITTER. Mr. Chairman, I am pleased to rise in support of this 
bill and in support of the manager's amendment, because it is not just 
about energy security which is crucial, it is not just about economic 
security which is crucial. It is also about national security.
  That is exactly why I proposed an amendment that was included in the 
manager's amendment to mandate us to take all action necessary to 
decrease our reliance on foreign sources of oil. Specifically, it says 
that we are going to take every action necessary in the areas of 
conservation, efficiency, alternative source development, technology 
development, and domestic production to reduce U.S. dependence on 
foreign energy sources from 56 percent, where we are today and rising, 
to 45 percent by January 1, 2012, and to reduce U.S. dependence on 
Iraqi energy sources in particular from 700,000 barrels per day, where 
we are now, to 250,000 barrels per day by that same date, January 1, 
2012.
  We need to take a balanced approach that this bill demonstrates and 
involves if we are going to take the right step forward for national 
security as well as energy and economic security. Every day we wait, 
every day we do not act in all areas like conservation and alternative 
source and domestic production, Saddam Hussein sits back and laughs and 
collects more money and collects more leverage on our economy. We need 
to turn that tide around. This bill and this manager's amendment is a 
crucial and important first step in doing that.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Massachusetts (Mr. Markey), a valued member of the 
Committee on Resources.

                              {time}  1445

  Mr. MARKEY. Mr. Chairman, the Republican bill will spend $34 billion, 
and these are huge breaks, a royalty holiday, meaning the oil and gas 
companies will not have to pay for going on public lands. Other huge 
breaks.
  Now, where are they going? They just had a huge tax break for the 
upper 1 percentile just 3 months ago. We have run out of the real 
surplus. Now people say well, you know what, we still have the Social 
Security, and we still have the Medicare surpluses.
  So here is what they are doing. They are about to build their oil 
rigs, their gas rigs, on top of the Social Security trust fund, on top 
of the Medicare trust fund, and they are about to begin to drill so 
they can pump it dry. They are going to build a pipeline, a pipeline 
into the pockets of the senior citizens in our country. That is where 
the money has to come from.
  Now, they did not allow the Democrats to make an amendment so that we 
could have the $34 billion come out of the tax break for the upper one-
half of one percent percentile, who, after all, is also going to get 
this $34 billion. It is going to be a rig that goes directly into 
Social Security and Medicare, and they are not allowing us to make an 
amendment to stop this, and that is wrong. That is what this whole 
debate is all about. It is about this mindless commitment to ensuring 
that Medicare and Social Security money is spent on things other than 
the senior citizens in

[[Page H5109]]

this country, and blocking the Democrats from protecting these trust 
funds which have been promised to our seniors. Please.
  Mr. TAUZIN. Mr. Chairman, I yield myself 30 seconds.
  Mr. Chairman, I do not know what kind of problems the gentleman that 
preceded me has with the Committee on Rules or the underlying bill, but 
the manager's amendment before us establishes, for example, studies on 
the feasibility of processing and converting municipal waste sewage to 
fuel, ethanol; to find ways to limit demand growth; to find a joint 
study on boutique fuels; to include using the excise tax program to 
help encourage new and alternative fuels in the marketplace. It is a 
good manager's amendment, whatever other problems you have with the 
bill.
  Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from Alabama 
(Mr. Bachus).
  Mr. BACHUS. Mr. Chairman, I could not agree with the gentleman from 
Louisiana more. This is about increasing our energy supply and doing it 
domestically and doing it in an environmentally friendly way. If you 
want to depend on OPEC, then Social Security is going to be threatened.
  Contained in the manager's amendment is a study by the Department of 
Energy on how to best promote turning municipal solid waste and sewer 
sludge into ethanol, or simply turning garbage into ethanol. Now, what 
do we do today? We bury our garbage, we spread it across the land, we 
spread our sewage across the land, we take it on barges and dump it in 
the ocean, we ship it 500 miles, resulting in air pollution, water 
pollution.
  There is a better way, and that is to take our garbage, convert it 
into ethanol, and burn it as a clean burning fuel to replace MTBE fuels 
which pollute the water. The one thing that this bill has that is a 
revolutionary step that will prove 10, 20, 30 years from now to be one 
of the best things we did, is to start turning a problem into a 
solution, and that is garbage into ethanol, something we have too much 
of, to something we do not have enough of.
  I commend the chairman for including this study. We will look back on 
this day and thank ourselves.
  Mr. RAHALL. Mr. Chairman, I yield 1 minute to the gentlewoman from 
the Virgin Islands (Mrs. Christensen), the distinguished ranking member 
of our Subcommittee on National Parks, Recreation, and Public Lands.
  (Mrs. CHRISTENSEN asked and was given permission to revise and extend 
her remarks.)
  Mrs. CHRISTENSEN. Mr. Chairman, I rise in opposition to the manager's 
amendment and H.R. 4, which really does not secure America's energy 
future. Instead, the bill threatens the future of Alaska's and one of 
the country's most pristine natural areas, cuts back on clean air 
standards, and opens up more of the public lands to mining and 
drilling, while relieving already rich oil companies of their 
responsibility for paying the American people for the right to drill on 
our lands.
  Ninety-five percent of the Alaska wilderness is available for 
drilling. Let us save the 5 percent in the fragile refuge and use the 
vast lands already available to develop the oil and gas supplies and 
still create the jobs our workers need.
  Let us reject this fig leaf amendment and H.R. 4.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 1\1/2\ minutes to the 
gentleman from Indiana (Mr. Pence).
  Mr. PENCE. Mr. Chairman, I thank the distinguished chairman for 
yielding me time, and I rise in support of the manager's amendment to 
the Securing America's Future Energy Act. I do so because I am very 
concerned, Mr. Chairman, with America's growing energy crisis.
  Fuel economy and fuel efficiency are important, but we cannot afford 
to tinker with regulations for political purposes when they have no 
meaningful effect.
  Some would like to see changes in the CAFE standards, and allege that 
such a change would actually help improve America's energy economy. I 
beg to differ, Mr. Chairman. The most likely response to higher CAFE 
standards is that safer cars will cost more and will be purchased less. 
Increasing those standards will undermine automobile safety, needlessly 
risking the lives of families and children who choose light trucks and 
other vehicles because they offer superior safety.
  In addition, Mr. Chairman, in my own district in Indiana, we are part 
of a network of automotive manufacturers who help consumers get these 
safer cars. Arbitrarily increasing CAFE standards will put families at 
risk on the road and hardworking automotive families at risk at work, 
who could well lose their jobs if we damage this vital part of our 
automotive economy.
  Say no to higher arbitrary CAFE standards, keep Americans safe on the 
road, Mr. Chairman, and keep auto workers safely employed.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in opposition to the manager's amendment and 
hope I may allay some of the concerns of the gentleman from Louisiana 
about where our remarks are addressed. There are many reasons to oppose 
this amendment. I will limit my comments to those provisions of this 
amendment that falls within the jurisdiction of the Committee on 
Resources.
  Under the pretence of improving several particularly egregious 
provisions of the bill as reported by the Committee on Resources, this 
manager's amendment does not, as the author suggests, perfect or 
correct these objectionable provisions.
  In fact, the amendment actually maintains the majority's misguided 
intentions to open the entire Federal estate to oil and gas leasing and 
to transfer costs now borne by the oil and gas industry to the American 
taxpayers.
  First, the amendment would add a misleading provision entitled 
``preservation of Federal authority'' to lull the unsuspecting into 
believing that oil and gas leasing decisions will be consistent with 
Federal environmental laws. However, closer reading of the provision 
clearly states that Federal lease stipulations cannot be more stringent 
than State oil and gas laws. This means that if a wildlife or hunting 
regulation would require exploration and development to occur in 
certain months to protect wildlife breeding habitat, that the Federal 
Government could not impose that requirement on the oil and gas 
activity. The Sportsmen's Caucus should be very concerned about this 
provision.
  Second, despite what its authors tell you, the manager's amendment 
maintains the flaw in H.R. 4 that takes Forest Service decision-making 
authority away from the Forest Service land manager and instead hauls 
it into Washington, D.C. It requires the Secretary of Agriculture not 
to force professionals in the field to decide where oil and gas leasing 
will occur in National Forest Service lands.
  Third, the manager's amendment maintains a nice little kickback for 
big oil for its costs in preparing environmental impact statements. CBO 
says this particular provision will cost the American taxpayers $370 
million, and, of that amount, the States, oil-producing States like 
Wyoming, Colorado, and Utah, will lose $185 million.
  Why should American taxpayers foot the bill for NEPA documents for 
the oil and gas industry, which, according to The Wall Street Journal 
again, is enjoying huge profits and does not know where to spend their 
hordes of cash?
  This amendment does precious little to improve a bad bill. It does 
not solve the environmental problems created by the Committee on 
Resources portion of the bill. I would urge my colleagues to vote 
against the manager's amendment.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 2 minutes to the 
gentleman from Oklahoma (Mr. Largent), a valued member of the Committee 
on Energy and Commerce. New.
  (Mr. LARGENT asked and was given permission to revise and extend his 
remarks.)
  Mr. LARGENT. Mr. Chairman, there is a Chinese proverb that says that 
the best time to plant a tree is 20 years ago, but the next best time 
to plant a tree is today.
  The same can be said for a national energy policy. The best time to 
have had a national energy policy in place would have been 20 years 
ago, because we would not be in the position we are in today had we 
done that. But the next best time is today.
  Great leaders have the uncanny ability to climb to the highest 
vantage point to see where we are and where we

[[Page H5110]]

want to be, and I want to commend and applaud the efforts of the 
President and Vice President for climbing to that vantage point and 
seeing the necessity of having a national energy policy and beginning 
to implement it today.
  Now, the key word in developing a national energy policy is the same 
key word in having a productive life, and that is balance. And this 
underlying bill and the manager's amendment, that I speak on behalf of 
at this time, strikes that balance.
  A national energy policy should be balanced. We should strike a 
balance between our efforts on conservation, which this bill does. We 
should strike a balance on our fossil fuel resources, between oil and 
gas and coal, and we do that. We should have a balance in terms of the 
emphasis on research, or renewable resources as well, and this bill 
does that.
  In the future, in the fall, we will be adding a complement bill to 
this that looks into how we can encourage and incentivize new 
additional nuclear power in this country, which is the right thing to 
do, and to continue to look at ways that we can clear up the 
electricity wholesale markets in this country, especially in terms of 
how we deliver electricity across State lines on the big bulk power 
grid. And that is going to be very important.
  But this bill is a good bill, it is a balanced bill, it is a 
commonsense bill, it is a responsible bill, and I urge my colleagues to 
support this bill, because today is the next best time to have a 
national energy policy in place.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
New York (Mrs. Maloney).
  Mrs. MALONEY of New York. I thank the gentleman for yielding me time 
and for his leadership.
  Mr. Chairman, I rise against the manager's amendment because it does 
nothing to correct the rip-off of corporate welfare in the royalty-in-
kind program. I also rise in opposition to the underlying bill, as it 
might as well have been written in 1901 instead of 2001. It spends 
billions of taxpayers' dollars on corporate welfare to help dirty, 
polluting oil energy sources, old energy sources, and it does little to 
encourage newer, cleaner fuels.
  I am particularly disturbed that an amendment was not accepted of 
mine to delete the royalty-in-kind program and that this manager's 
amendment does not delete it. The oil companies call it a new way to 
pay. I call it a new way to rip off America's taxpayers.
  Recently, because of work in this body and oversight, the oil 
companies were revealed that they were underpaying dramatically what 
was owed the Federal Government for oil extracted from federally owned 
lands. They settled over $5 billion to the Federal Government, 
admitting that they underpaid the Federal Government. Now that we have 
tied their payment to market price, they come up with a new idea, they 
are going to pay in oil.
  What are we going to do with this oil? We are going to probably take 
it and send it back to the very same companies who just sold it to us 
and who have been historically cheating us and let them determine what 
the price is. I ask, why are we letting the government get into the oil 
business? Since when did this Congress consider creating new massive 
Federal bureaucracies that we have no idea what they cost?
  There have been several GAO reports have pointed out that all of the 
royalty-in-kind programs have cost taxpayers money.

                              {time}  1500

  So why are we going to proceed with corporate welfare? What will this 
body do next? Will we allow bakers to pay their fees with pies? It is 
an outrage. It is wrong. Vote no.
  Contrary to the Department of Interior's claim that the Wyoming RIK 
pilot program was successful, an independent analysis determined that 
it actually LOST almost $3 million compared to what would have been 
paid by Big Oil if royalties had been paid based on market prices.

    Fact Sheet on Royalty-in-Kind in H.R. 4, the Energy Security Act

       New Oil Rule Collects $70 Million More Annually--Stops 
     Cheating. In June 2000 the Department of Interior implemented 
     a final rule that collects $70 million more annually from 
     companies drilling oil from federal and Indian lands. As a 
     result, the oil industry's decades-long practice of 
     shortchanging the taxpayers ended. The rule came after years 
     of public debate and litigation that forced the industry to 
     settle with the Justice Department for $425 million.
       Oil Industry Pushes Royalty-in-Kind (RIK). During the oil 
     rule battle, the industry promoted RIK--where companies pay 
     royalties in, for example, barrels of oil rather than 
     dollars--as their alternative to paying fair market value 
     under the proposed rule.
       RIK Pilot Programs Have LOST Money. Interior has completed 
     two royalty-in-kind pilot programs. Both failed, losing 
     significant revenues compared to dollars received from 
     programs collecting cash. According to Interior, the first 
     pilot program to collect gas royalties-in-kind lost $4.7 
     million. Earlier this year, a second pilot program to collect 
     oil royalties-in-kind lost $3 million, in spite of Interior's 
     claim that it made $800,000. An independent economist 
     discovered that Interior used old valuation standards in 
     estimating the profit.
       Expansion Of RIK Pilots Can Only Lead to Further Losses for 
     the Taxpayer. The two pilot programs failed despite the fact 
     that the Interior Department selected oil and gas leases most 
     likely to succeed in generating comparable income. Expansion 
     of royalty-in-kind programs to leases less likely to succeed 
     will only lead to additional revenue losses for the American 
     people.
       GAO Says RIK Won't Work For Federal Royalties. In 1998, the 
     General Accounting Office analyzed the prospect for a 
     successful federal RIK program and concluded: ``According to 
     information from studies and the programs themselves, 
     royalty-in-kind programs seem to be feasible if certain 
     conditions are present . . . However, these conditions do not 
     exist for the federal government or for most federal leases . 
     . .'' The report also notes that requiring RIK on all federal 
     leases will cost the government $140 million to $367 million 
     annually.
       There is no evidence that royalty-in-kind will end 
     litigation or disputes over how much oil and gas companies 
     should be paying. Pending lawsuits filed by whistleblowers 
     allege that companies manipulated the volume and heating 
     content of gas taken from public lands in order to avoid 
     paying royalties. The allegations call into question the 
     wisdom of accepting any payments in- kind--until the 
     allegations are fully investigated.

  Mr. TAUZIN. Mr. Chairman, I yield the remaining time to the gentleman 
from Virginia (Mr. Tom Davis) for a colloquy.
  (Mr. TOM DAVIS of Virginia asked and was given permission to revise 
and extend his remarks.)
  Mr. TOM DAVIS of Virginia. Mr. Chairman, H.R. 4 contains provisions 
that would impose mandatory standards on the high-tech sector, a 
community that for 10 years has worked voluntarily with the Federal 
Government through the Energy Star program to achieve approximately 
7,000 energy-efficient consumer products for more than 1,000 
manufacturers. By imposing mandatory standards, we risk quelling 
innovation and, as a result, hindering growth.
  I am concerned that inflexible, mandatory standards, as they exist 
now, could stunt the technology engines of our economy and compromise 
our competitiveness worldwide. For this reason, I would respectfully 
ask the chairman to work with me as we address some of these concerns 
as we prepare to go to conference on this measure.
  Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
  Mr. TOM DAVIS of Virginia. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. Mr. Chairman, I would be happy to work with the gentleman 
on those concerns, and hopefully, in the conference, we can alleviate 
those concerns.
  Mr. DREIER. Mr. Chairman, will the gentleman yield?
  Mr. TOM DAVIS of Virginia. I yield to the gentleman from California.
  Mr. DREIER. Mr. Chairman, I would simply like to say that this falls 
in line with the remarks that I made during consideration of the rule. 
I believe it is very important that we address the potential unintended 
consequences on this as we head into conference, so that we ensure that 
our very important friends in the technical industries that are 
creating 45 percent of the GDP growth in this country are not affected 
in a deleterious way on this issue.
  Mr. RAHALL. Mr. Chairman, I yield myself the remaining time.
  I think it is appropriate that that side had the chair of their 
Republican Campaign Committee as their cleanup hitter on this 
particular legislation.
  I guess the reason the majority decided to wait until August 1 to 
bring this bill up was so they could not be tagged with providing 
Christmas in July for the major oil companies. They brought the bill up 
on August 1 because it is a grab bag of goodies for the oil companies.
  The manager's amendment does nothing to eliminate any of these rip-

[[Page H5111]]

offs of the American taxpayer. The American taxpayers are still going 
to pick up the tab for many of the costs incurred by the major oil 
companies who are today reaping hoards of cash and do not know what to 
do with it.
  Mr. BROWN of South Carolina. Mr. Chairman, this provision for a 
feasibility study of commercially owned and operated nuclear power 
plants is intended to be simple and straight-forward. We know that the 
nuclear plants operating today are quickly approaching the end of their 
serviceable years. If nuclear power is going to continue to provide a 
significant source of this nation's electricity, this study by DOE will 
help the Congress determine if there are any unique advantages to 
having commercial nuclear power plants on existing DOE sites. The fact 
is that nuclear power is our cleanest source of energy and provides 
about 20 percent of U.S. electricity generation. That compares to 
almost 76 percent in France, 56 percent in Belgium, and 30 percent in 
Germany. In my state of South Carolina, nuclear power provides 55 
percent of our electricity. Demand for energy in the United States is 
rising and nuclear power can continue to help us meet this need. These 
DOE sites offer a potential solution to problems such as securing new 
land for the next generation of nuclear power plants, contentious 
licensing, absence of local community support, and investments in 
costly basic infrastructure.
  The CHAIRMAN pro tempore (Mr. Linder). All time has expired. The 
question is on the amendment offered by the gentleman from Louisiana 
(Mr. Tauzin).
  The question was taken; and the Chairman pro tempore announced that 
the ayes appeared to have it.
  Mr. TAUZIN. Mr. Chairman, I demand a recorded vote and, pending that, 
I make the point of order that a quorum is not present.
  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Louisiana 
(Mr. Tauzin) will be postponed.
  The point of no quorum is considered withdrawn.
  The CHAIRMAN pro tempore. It is now in order to consider Amendment 
No. 2 printed in part B of House report 107-178.


                  Amendment No. 2 Offered by Mrs. Bono

  Mrs. BONO. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mrs. Bono:
       After section 141, insert the following new section and 
     make the necessary conforming changes in the table of 
     contents:

     SEC. 141A. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY 
                   PROGRAM.

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

     ``SEC. 324B. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY 
                   PROGRAM.

       ``(a) Program.--There is established at the Environmental 
     Protection Agency and the Department of Energy a government-
     industry partnership program to identify and promote the 
     purchase of renewable and alternative energy products, to 
     recognize companies that purchase renewable and alternative 
     energy products for the environmental and energy security 
     benefits of such purchases, and to educate consumers about 
     the environmental and energy security benefits of renewable 
     and alternative energy. Responsibilities under the program 
     shall be divided between the Environmental Protection Agency 
     and the Department of Energy consistent with the terms of 
     agreements between the two agencies. The Administrator of the 
     Environmental Protection Agency and the Secretary of Energy--
       ``(1) establish an Energy Sun label for renewable and 
     alternative energy products and technologies that the 
     Administrator or the Secretary (consistent with the terms of 
     agreements between the two agencies regarding responsibility 
     for specific product categories) determine to have 
     substantial environmental and energy security benefits and 
     commercial marketability.
       ``(2) establish an Energy Sun Company program to recognize 
     private companies that draw a substantial portion of their 
     energy from renewable and alternative sources that provide 
     substantial environmental and energy security benefits, as 
     determined by the Administrator or the Secretary.
       ``(3) promote Energy Sun compliant products and 
     technologies as the preferred products and technologies in 
     the marketplace for reducing pollution and achieving energy 
     security; and
       ``(4) work to enhance public awareness and preserve the 
     integrity of the Energy Sun label.

     For the purposes of carrying out this section, there is 
     authorized to be appropriated $10,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(b) Study of Certain Products, Technologies, and 
     Buildings.--Within 18 months after the enactment of this 
     section, the Administrator and the Secretary, consistent with 
     the terms of agreements between the two agencies, shall 
     conduct a study to determine whether the Energy Sun label 
     should be authorized for products, technologies, and 
     buildings in the following categories:
       ``(1) Passive solar, solar thermal, concentrating solar 
     energy, solar water heating, and related solar products and 
     building technologies.
       ``(2) Solar photovoltaics and other solar electric power 
     generation technologies.
       ``(3) Wind.
       ``(4) Geothermal.
       ``(5) Biomass.
       ``(6) Distributed energy (including, but not limited to, 
     microturbines, combined heat and power, fuel cells, and 
     stirling heat engines).
       ``(7) Green power or other renewables and alternative based 
     electric power products (including green tag credit programs) 
     sold to retail consumers of electricity.
       ``(8) Homes.
       ``(9) School buildings.
       ``(10) Retail buildings.
       ``(11) Health care facilities.
       ``(12) Hotels and other commercial lodging facilities.
       ``(13) Restaurants and other food service facilities.
       ``(14) Rest area facilities along interstate highways.
       ``(15) Sports stadia, arenas, and concert facilities.
       ``(16) Any other product, technology or building category, 
     the accelerated recognition of which the Administrator or the 
     Secretary determines to be necessary or appropriate for the 
     achievement of the purposes of this section.

     Nothing in this subsection shall be construed to limit the 
     discretion of the Administrator or the Secretary under 
     subsection (a)(1) to include in the Energy Sun program 
     additional products, technologies, and buildings not listed 
     in this subsection. Participation by private-sector entities 
     in programs or studies authorized by this section shall be 
     (A) voluntary, and (B) by permission of the Administrator or 
     Secretary, on terms and conditions the Administrator or the 
     Secretary (consistent with agreements between the agencies) 
     deems necessary or appropriate to carry out the purposes and 
     requirements of this section.
       ``(c) Definition.--For the purposes of this section, the 
     term `renewable and alternative energy' shall have the same 
     meaning as the term `unconventional and renewable energy 
     resources' in Section 551 of the National Energy Conservation 
     Policy Act (42 U.S.C. 8259)''.''.
       (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 324A the 
     following new item:

``Sec. 324B. Energy Sun renewable and alternative energy program.''.

  The CHAIRMAN. Pursuant to House Resolution 216, the gentlewoman from 
California (Mrs. Bono) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from California (Mrs. Bono).
  Mrs. BONO. Mr. Chairman, I yield myself such time as I may consume.
  I would first like to commend the gentleman from Louisiana (Mr. 
Tauzin) and the gentleman from Michigan (Mr. Dingell), along with the 
gentleman from Texas (Mr. Barton) and the gentleman from Virginia (Mr. 
Boucher) for their hard work in putting together the part of H.R. 4 
provided by the Committee on Energy and Commerce. After years of 
neglecting to formulate a national energy policy, I am thankful that 
this administration and Congress have turned their attention towards 
this vital issue.
  A critical part of the diverse energy mix is renewable and 
alternative energy. This bill provides for more use of renewable energy 
by the Federal Government, alternative fuel vehicles, and a very 
aggressive program of research and development for renewables and 
alternative energy sources.
  But we can do more. California's 44th congressional district has been 
a leader in the development of green power. Solar, wind, distributed 
energy, and other developing technologies help protect the environment 
and save money on consumer energy bills. This amendment would promote 
these promising technologies through a government-industry partnership 
project sponsored by the EPA and the DOE.
  This initiative would be called the ``Energy Sun'' partnership 
program. It is modeled on the highly successful EPA-DOE program of a 
similar name, the Energy Star program, which focuses on promoting 
energy-efficient products. For the private sector, the Energy Sun 
program, like Energy Star, would be purely voluntary. It would promote 
renewable and alternative energy through consumer education and market 
forces, not mandates.

[[Page H5112]]

  EPA and DOE would recognize only the best products, those that 
promise substantial environmental and energy security benefits. It 
would also recognize companies that use those products, creating a 
marketing incentive for companies to use environmentally friendly, 
renewable and alternative energy.
  If adopted, I look forward to working on this program, not only with 
the Committee on Energy and Commerce, but also with the gentleman from 
New York (Mr. Boehlert) and the Committee on Science, who have also 
done a lot of work to promote the alternative forms of energy.
  I believe this program would help promote our Nation's energy 
security, reduce pollution, and make a clean, diverse energy supply 
more affordable for all Americans. I ask my colleagues to vote for this 
amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TAUZIN. Mr. Chairman, although I support the amendment, I claim 
the time in opposition, and I yield myself such time as I may consume.
  I rise in support of the amendment offered by the gentlewoman from 
California (Mrs. Bono) to establish the Energy Sun program, a 
government-industry partnership to recognize promising renewable and 
alternative energy products and technologies.
  Mr. Chairman, H.R. 4 already authorizes a very successful EPA and 
Department of Energy program called the Energy Star program. The point 
of Energy Star is to educate, not to mandate. It works because 
consumers want to save energy and they also want to save money on their 
energy bills. Energy Sun will do for renewable energy what Energy Star 
has done for efficiency.
  Many consumers have heard of energy solar panels or wind power, or 
maybe even a green power program through an electric utility company. 
But the average consumer has no way of knowing which renewable source 
or alternative technology is really available, which one is practicable 
for their own needs. Like Energy Star, Energy Sun program will enhance 
our country's energy security by educating consumers, and then 
harnessing the power of the marketplace.
  I would like to thank the gentlewoman from California (Mrs. Bono) for 
offering this amendment, and I encourage my colleagues to vote for it.
  Mr. Chairman, I yield such time as he may consume to the gentleman 
from Virginia (Mr. Boucher).
  Mr. BOUCHER. Mr. Chairman, I thank the gentleman from Louisiana for 
yielding, and I asked that he do so only for the purpose of saying that 
we have no objection to this provision on our side. I want to commend 
the gentlewoman from California (Mrs. Bono) for a constructive 
amendment. I am pleased to support it, and I encourage others to do so.
  Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New York (Mr. Boehlert).
  Mr. BOEHLERT. Mr. Chairman, I rise in support of the amendment 
offered by the gentlewoman from California (Mrs. Bono).
  The amendment amends division A, which is based on text reported by 
the Committee on Energy and Commerce. The amendment establishes a new 
program within EPA and the Department of Energy regarding certain 
renewable and alternative energy products and technologies, and I 
commend her for that approach.
  Under the Rules of the House, the Committee on Science has 
jurisdiction over all energy research development and demonstration, 
commercial application of energy technology, and environmental research 
and development.
  Am I correct that the committee does not intend for the placement of 
this amendment in division A of H.R. 4 and its revision of the Energy 
Policy and Conservation Act to diminish or otherwise affect the 
jurisdiction of the Committee on Science?
  Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
  Mr. BOEHLERT. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. Mr. Chairman, the gentleman is correct. Both the 
Committee on Energy and Commerce and the Committee on Science have 
jurisdiction over energy-related programs of the Environmental 
Protection Agency and the Department of Energy.
  Mr. BOEHLERT. Mr. Chairman, I thank the gentleman for his 
clarification and cooperation. I look forward to working with him and 
his committee and my colleagues on the Committee on Energy and Commerce 
on this provision, as well as other provisions of mutual interest.
  Mrs. BONO. Mr. Chairman, I yield 30 seconds to the gentleman from 
California (Mr. Dreier).
  Mr. DREIER. Mr. Chairman, I thank the gentlewoman for yielding.
  I rise to not only congratulate the distinguished chairman of the 
Committee on Energy and Commerce, but also to congratulate, from my 
perspective as a Californian, one of its three most important members, 
the gentlewoman from Palm Springs, California (Mrs. Bono). Focusing on 
the issue of renewable energy and conservation is a very important 
thing and pursuing this program, I believe, will go a long way towards 
doing just that.
  So I compliment her and thank her very much for the leadership that 
she has shown on this very important issue.
  Mrs. BONO. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Wyoming (Mrs. Cubin).
  Mrs. CUBIN. Mr. Chairman, I too rise in support of the Bono 
amendment.
  I want to speak, however, to the amendment that is coming up after 
this one, the Corporate Average Fuel Economy standard increase.
  Last year in my home State of Wyoming, registration of light trucks 
outnumbered passenger cars by about 2 to 1. While this statistic may be 
surprising to some of my colleagues, it is in no way surprising to me. 
Despite the many advantages that we enjoy living in Wyoming, its cold, 
harsh, long winters, long-distance traveling and often rugged terrain 
create additional safety and utility needs to such everyday events as 
traveling to a nearby town for business or for transporting one's 
children to soccer practice.
  SUVs, Suburbans and minivans have replaced the station wagon as the 
soccer mom's vehicle of choice, because these vehicles provide levels 
of safety, passenger room and utility that allow an active family to 
meet their needs.
  Wyoming's agriculture community also depends on light truck utility 
vehicles to accomplish the necessary work associated with farming and 
ranching. It should not take a farmer or a rancher to tell us we cannot 
haul a bail of hay in a Geo Metro. While that vehicle also has its 
place in the market, and I do not deny that, agriculture families 
simply have different needs.
  Thankfully, the auto industry constantly works to address these needs 
by building and marketing larger and safer and, yes, more fuel-
efficient vehicles. After all, these vehicles are what consumers want 
to buy, and it only makes sense for the market to respond to that 
consumer demand.
  Increasing CAFE standards today would put automobile manufacturers at 
odds with consumers by forcing the auto industry to produce smaller and 
lighter vehicles. Such a requirement would not only translate into 
reduction of consumer choice, but would sacrifice the safety benefits 
that go along with larger vehicles.
  The National Research Council's report on CAFE standards released 
only yesterday stated that without a thought for a restructuring of the 
program, additional traffic fatalities would be the trade-off that we 
must incur.
  Mr. Chairman, I urge my colleagues to support the Bono amendment and 
vote against the Boehlert amendment.
  Mrs. BONO. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New Hampshire (Mr. Bass).
  Mr. BASS. Mr. Chairman, I rise in support of the Bono amendment.
  Mr. Chairman, I rise in support of the Bono Amendment to H.R. 4. 
Today we have an opportunity to advance the use of renewable and 
alternative energy products. The Energy Sun program has significant 
environmental and energy security benefits. I support extending the 
Energy Sun label to renewable and alternative energy products including 
solar, wind, biomass, and distributed energy. Specifically, I believe 
new technologies, like that of the stirling heat engine, will go far to 
reduce pollution and our dependence on dangerously strained electric 
power grids. Now is the time to recognize and encourage the use of 
products and

[[Page H5113]]

technologies that will improve our homes, our communities, and our 
environment.
  Mr. TAUZIN. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman 
from South Dakota (Mr. Thune).
  Mr. THUNE. Mr. Chairman, I thank the gentleman for yielding time.
  I too want to commend the gentlewoman from California (Mrs. Bono) for 
her commitment to promoting renewables.
  Mr. Chairman, America needs a balanced energy policy. We need more 
renewables. We know ethanol cannot replace petroleum, at least not yet, 
but we think we can increase the market share for biofuels in this 
country and therefore lessen America's dependence upon foreign oil.
  So for that reason I want to thank the gentleman from Louisiana (Mr. 
Tauzin) for including in his manager's amendment a provision 
commissioning a study of administering a program to establish a 
renewable fuel standard for motor vehicle fuel sold in the United 
States. The provision, as offered, was based on a bill that I have 
cosponsored, or I should say, I sponsored, the Renewable Fuels for 
Energy Security Act of 2001.
  While I believe this Nation is ready for such a program, I am 
encouraged by the chairman's willingness to direct EPA and the 
Department of Energy to review this approach. That, I believe, is a 
step in the right direction.
  I look forward to working with the chairman and my colleagues in the 
House in ways that we can decrease our dependence upon foreign sources 
of energy and make renewable fuels, such as ethanol, biodiesel and 
biomass a significant part of the energy mix in this country.
  A 3 percent market share for ethanol and biodiesel will displace 
about 9 billion gallons of gasoline annually, or between 500,000 and 
600,000 barrels of crude oil a day, which is the amount that the U.S. 
now imports from Iraq.
  We need a balanced energy policy, Mr. Chairman. We need to support 
renewables. I commend the gentlewoman from California (Mrs. Bono) for 
her effort in that regard, and I thank the chairman for his efforts in 
trying to move this forward.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 30 seconds if the 
gentlewoman from California (Mrs. Bono) would yield 30 seconds to the 
gentleman from New York (Mr. Fossella).
  Mrs. BONO. Mr. Chairman, I also yield 30 seconds to the gentleman 
from New York (Mr. Fossella).

                              {time}  1515

  Mr. FOSSELLA. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  Mr. Chairman, I think it is easy to be against a lot of things, but 
the question is, what are we for as a Congress. We are for encouraging 
conservation. We are for encouraging energy efficiency. We are for the 
use of alternative sources of energy and renewables. That is what we 
are for.
  The great thing about this country, our country, is when the American 
people are given the truth, they can make the determinations that best 
suit their needs, their families, and their businesses.
  So what we are for are lower energy prices, lower electricity prices, 
lower gas prices, and at the same time, it strikes the balance by 
protecting our environment and providing safeguards so that the 
industries do not run wild. That is what the underlying bill does.
  I commend the gentlewoman for complementing that and doing what is 
right and responsible for now and for America's future.
  The CHAIRMAN pro tempore (Mr. Linder). All time on both sides has 
expired.
  The question is on the amendment offered by the gentlewoman from 
California (Mrs. Bono).
  The question was taken; and the Chairman pro tempore announced that 
the ayes appeared to have it.
  Mr. TAUZIN. Mr. Chairman, on that I demand a recorded vote.
  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentlewoman from California 
(Mrs. Bono) will be postponed.


        Sequential Votes Postponed in the Committee of the Whole

  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, 
proceedings will now resume on those amendments on which further 
proceedings were postponed in the following order: amendment No. 1 
offered by the gentleman from Louisiana (Mr. Tauzin); amendment No. 2 
offered by the gentlewoman from California (Mrs. Bono).
  The Chair will reduce to 5 minutes the time for the second electronic 
vote.


                 Amendment No. 1 Offered by Mr. Tauzin

  The CHAIRMAN pro tempore. The pending business is the demand for a 
recorded vote on amendment No. 1 offered by the gentleman from 
Louisiana (Mr. Tauzin) on which further proceedings were postponed and 
on which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 281, 
noes 148, not voting 4, as follows:

                             [Roll No. 309]

                               AYES--281

     Abercrombie
     Aderholt
     Akin
     Allen
     Armey
     Baca
     Bachus
     Baker
     Baldacci
     Ballenger
     Barcia
     Barr
     Bartlett
     Barton
     Bass
     Bentsen
     Bereuter
     Berry
     Biggert
     Bilirakis
     Bishop
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Boucher
     Boyd
     Brady (TX)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Cooksey
     Costello
     Cox
     Cramer
     Crane
     Crenshaw
     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (FL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeLay
     DeMint
     Diaz-Balart
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Everett
     Ferguson
     Flake
     Fletcher
     Foley
     Forbes
     Fossella
     Frelinghuysen
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grucci
     Gutknecht
     Hall (TX)
     Hansen
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinojosa
     Hobson
     Hoekstra
     Holden
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hyde
     Isakson
     Issa
     Istook
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     Kerns
     King (NY)
     Kingston
     Kirk
     Knollenberg
     Kolbe
     LaHood
     Lampson
     Largent
     Larsen (WA)
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lucas (KY)
     Lucas (OK)
     Manzullo
     Mascara
     McCarthy (NY)
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller (FL)
     Miller, Gary
     Mink
     Moore
     Moran (KS)
     Morella
     Myrick
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Ortiz
     Osborne
     Ose
     Otter
     Oxley
     Pascrell
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rodriguez
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Roukema
     Royce
     Ryan (WI)
     Ryun (KS)
     Sandlin
     Saxton
     Scarborough
     Schaffer
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Stearns
     Stenholm
     Stump
     Stupak
     Sununu
     Sweeney
     Tancredo
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (MS)
     Thornberry
     Thune
     Tiahrt
     Tiberi
     Toomey
     Traficant
     Turner
     Upton
     Vitter
     Walden
     Walsh
     Wamp
     Watkins (OK)
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson
     Wolf
     Wynn
     Young (AK)
     Young (FL)

                               NOES--148

     Ackerman
     Andrews
     Baird
     Baldwin
     Barrett
     Becerra
     Berkley
     Berman
     Blagojevich
     Blumenauer
     Bonior
     Borski
     Boswell
     Brady (PA)
     Brown (FL)
     Brown (OH)
     Capps
     Capuano
     Cardin
     Carson (IN)
     Clay
     Clayton
     Conyers
     Coyne
     Crowley
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Dingell
     Doggett
     Engel
     Eshoo
     Etheridge
     Evans

[[Page H5114]]


     Farr
     Fattah
     Filner
     Ford
     Frank
     Frost
     Gephardt
     Gutierrez
     Harman
     Hastings (FL)
     Hinchey
     Hoeffel
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind (WI)
     Kleczka
     Kucinich
     LaFalce
     Langevin
     Lantos
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lofgren
     Lowey
     Luther
     Maloney (CT)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (MO)
     McCollum
     McDermott
     McGovern
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Millender-McDonald
     Miller, George
     Mollohan
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Neal
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pastor
     Paul
     Payne
     Pelosi
     Price (NC)
     Rahall
     Rangel
     Rivers
     Roemer
     Rothman
     Roybal-Allard
     Rush
     Sabo
     Sanchez
     Sanders
     Sawyer
     Schakowsky
     Serrano
     Sherman
     Skelton
     Slaughter
     Solis
     Spratt
     Strickland
     Tanner
     Tauscher
     Thompson (CA)
     Thurman
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Velazquez
     Visclosky
     Waters
     Watson (CA)
     Watt (NC)
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu

                             NOT VOTING--4

     Hall (OH)
     Hutchinson
     Spence
     Stark

                              {time}  1537

  Ms. KILPATRICK, Messrs. OWENS, LANGEVIN, MORAN of Virginia, and Ms. 
McCOLLUM changed their vote from ``aye'' to ``no.''
  Mr. POMEROY changed his vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                Announcement by the Chairman Pro Tempore

  The CHAIRMAN pro tempore (Mr. Linder). Pursuant to clause 6 of rule 
XVIII, the Chair announces that he will reduce to a minimum of 5 
minutes the period of time within which a vote by electronic device 
will be taken on the next amendment.


                  Amendment No. 2 Offered by Mrs. Bono

  The CHAIRMAN pro tempore. The pending business is the demand for a 
recorded vote on amendment No. 2 offered by the gentlewoman from 
California (Mrs. Bono) on which further proceedings were postponed and 
on which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 411, 
noes 15, not voting 7, as follows:

                             [Roll No. 310]

                               AYES--411

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barrett
     Bartlett
     Barton
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chabot
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Combest
     Condit
     Conyers
     Cooksey
     Cox
     Coyne
     Cramer
     Crane
     Crenshaw
     Crowley
     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hansen
     Harman
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Horn
     Houghton
     Hulshof
     Hunter
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Markey
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller (FL)
     Miller, Gary
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Royce
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schakowsky
     Schiff
     Schrock
     Scott
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins (OK)
     Watson (CA)
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NOES--15

     Barr
     Coble
     Collins
     Costello
     Filner
     Flake
     Hostettler
     Johnson, Sam
     Jones (NC)
     Kerns
     Oberstar
     Otter
     Paul
     Pence
     Schaffer

                             NOT VOTING--7

     Grucci
     Hoyer
     Hutchinson
     Largent
     Oxley
     Spence
     Stark

                              {time}  1545

  Mr. WAXMAN changed his vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The CHAIRMAN pro tempore (Mr. Linder). It is now in order to consider 
Amendment No. 3 printed in part B of the House report 107-178.


                Amendment No. 3 Offered by Mr. Boehlert

  Mr. BOEHLERT. Mr. Chairman, I offer an amendment.
  The CHAIRMAN pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Boehlert:
       Page 66, beginning at line 11, strike sections 201, 202, 
     and 203 and insert the following:

     SEC. 201. INCREASED AVERAGE FUEL ECONOMY STANDARDS FOR 
                   PASSENGER AUTOMOBILES AND LIGHT TRUCKS.

       (a) Combined Standard.--Section 32902(b) of title 49, 
     United States Code, is amended to read as follows:
       ``(b) Standards for Passenger Automobiles and Light 
     Trucks.--(1) Except as provided in this section, the average 
     fuel economy standard for the combination of passenger 
     automobiles and light trucks manufactured by a manufacturer--
       ``(A) in each of model years 2005 and 2006 shall be 26.0 
     miles per gallon; and
       ``(B) in a model year after model year 2006 shall be 27.5 
     miles per gallon.
       ``(2) Except as provided in this section, and 
     notwithstanding paragraph (1), the average fuel economy 
     standard for passenger automobiles manufactured by a 
     manufacturer in

[[Page H5115]]

     model years 2005 and 2006 shall be 27.5 miles per gallon.''.
       (b) Amending Standards for Passenger Automobiles and Light 
     Trucks.--Section 32902(c) of title 49, United States Code, is 
     amended--
       (1) by amending so much as precedes the second sentence of 
     paragraph (1) to read as follows:
       ``(c) Amending Standard for Combination of Passenger 
     Automobiles and Light Trucks.--The Secretary of 
     Transportation shall prescribe regulations amending any of 
     the standards under subsection (b) of this section for a 
     model year to any higher level that the Secretary decides is 
     the maximum feasible average fuel economy level for that 
     model year.''; and
       (2) by striking paragraph (2).
       (c) Definition of Light Truck.--
       (1) In general.--Section 32901(a) of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(17) `light truck' means a 4-wheeled vehicle that is 
     propelled by fuel, or by alternative fuel, that is 
     manufactured primarily for use on public streets, roads, and 
     highways (except a vehicle operated only on a rail line), and 
     that the Secretary decides by regulation--
       ``(A) is rated--
       ``(i) at less than 8,500 pounds gross vehicle weight, in 
     the case of an automobile manufactured in model year 2005 or 
     2006; or
       ``(ii) at less than 10,000 pounds gross vehicle weight, in 
     the case of an automobile manufactured in a model year after 
     model year 2006;
       ``(B) is manufactured primarily for transporting not more 
     than 10 individuals; and
       ``(C) is not a passenger automobile.''.
       (2) Deadline for regulations.--The Secretary of 
     Transportation--
       (A) shall issue proposed regulations implementing the 
     amendment made by this subsection by not later than 6 months 
     after the date of the enactment of this Act; and
       (B) shall issue final regulations implementing such 
     amendment by not later than one year after the date of the 
     enactment of this Act.
       (c) Conforming Amendments.--
       (1) Section 32901(a)(3) of title 49, United States Code, is 
     amended by striking ``and rated at--'' and inserting ``and is 
     a light truck or is rated at--''.
       (2) Section 32902(a) of title 49, United States Code, is 
     amended--
       (A) by striking ``Non-Passenger Automobiles.--'' and 
     inserting ``Standards for Certain Automobiles.--''; and
       (B) by striking ``(except passenger automobiles)'' and 
     inserting ``(except passenger automobiles and light 
     trucks)''.
       (3) Section 32908(a)(1) of title 49, United States Code, is 
     amended by striking ``8,500'' and inserting ``10,000''.
       (d) Application.--The amendments made by this section shall 
     apply beginning on January 1, 2005.
       (e) Applicability of Existing Standards.--This section does 
     not affect the application of section 32902 of title 49, 
     United States Code, to passenger automobiles and light trucks 
     manufactured before model year 2005.

     SEC. 202. AMENDMENTS TO MANUFACTURING INCENTIVES FOR 
                   ALTERNATIVE FUEL AUTOMOBILES.

       Section 32905 of title 49, United States Code, is amended--
       (1) in subsection (b) by striking ``2004'' and inserting 
     ``2008'';
       (2) in subsection (b)(1) by striking ``.5 divided'' and 
     inserting ``the number determined by (A) subtracting from 1.0 
     the alternative fuel use factor for the model, and (B) 
     dividing the difference calculated under clause (A) by'';
       (3) in subsection (b)(2) by striking ``.5 divided'' and 
     inserting ``the number determined by dividing the alternative 
     fuel use factor for the model by'';
       (4) in subsection (d) by striking ``2004'' and inserting 
     ``2008'';
       (5) in subsection (d)(1) by striking ``.5 divided'' and 
     inserting ``the number determined by (A) subtracting from 1.0 
     the alternative fuel use factor for the model, and (B) 
     dividing the difference calculated under clause (A) by'';
       (6) in subsection (d)(2) by striking ``.5 divided'' and 
     inserting ``the number determined by dividing the alternative 
     fuel use factor for the model by''; and
       (7) by adding at the end the following:
       ``(h) Determination of Alternative Fuel Use Factor.--(1) 
     For purposes of subsections (b) and (d) of this section, the 
     term `alternative fuel use factor' means, for a model of 
     automobile, such factor determined by the Administrator under 
     this subsection.
       ``(2) At the beginning of each year, the Secretary of 
     Energy shall estimate the amount of fuel and the amount of 
     alternative fuel used to operate all models of dual fuel 
     automobiles during the most recent 12-month period.
       ``(3) The Administrator shall determine, by regulation, the 
     alternative fuel use factor for each model of dual fueled 
     automobile as the fraction that represents, on an energy 
     equivalent basis, the ratio that the amount of alternative 
     fuel determined under paragraph (1) bears to the amount of 
     fuel determined under paragraph (1).''.
       (c) Application.--The amendments made by this section shall 
     apply beginning on January 1, 2005.
       (d) Applicability of Existing Standards.--This section does 
     not affect the application of section 32901 of title 49, 
     United States Code, to automobiles manufactured before model 
     year 2005.

     SEC. 203. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT 
                   TRUCKS.

       The Secretary of Transportation shall exercise such 
     authority under Federal law as the Secretary may have to 
     ensure that passenger automobiles and light trucks (as those 
     terms are defined in section 32901 of title 49, United States 
     Code, as amended by this Act) are safe.
  The CHAIRMAN pro tempore. Pursuant to House Resolution 216, the 
gentleman from New York (Mr. Boehlert) and a Member opposed each will 
control 20 minutes.
  Mr. TAUZIN. Mr. Chairman, I claim the time in opposition and yield 9 
of those minutes to the gentleman from Michigan (Mr. Dingell) for the 
purposes of control.
  The CHAIRMAN pro tempore. Is there objection to the request of the 
gentleman from Louisiana?
  There was no objection.
  (Mr. BOEHLERT asked and was given permission to revise and extend his 
remarks.)
  Mr. BOEHLERT. Mr. Chairman, I yield myself 7 minutes.
  Mr. Chairman, I think virtually every Member of this body agrees that 
we need to raise the fuel economy of passenger vehicles. That is a no-
brainer. Raising fuel economy saves money, makes us less dependent on 
foreign oil sources and helps protect the environment without cramping 
our life-style one bit. That is why even this bill, which is so tepid 
about conservation, includes a small increase in fuel economy 
standards. There is just no persuasive argument against raising the 
standards. It is the simplest, most basic step available to us.
  The question, though, is whether we are going to just appear to take 
this step or whether we are going to do it for real. The language in 
this bill is about keeping up appearances. The Boehlert-Markey 
amendment is about actually saving oil. In fact, there is a chart 
before me which makes clear, our amendment would save more oil than 
would be produced from drilling in ANWR under even the most optimistic 
scenarios. Those figures come from the nonpartisan Congressional 
Research Service.
  The proponents of H.R. 4 will say they are not just keeping up 
appearances. They plan to save 5 billion gallons of oil over 5 years. 
That is a big number, but it is not a lot in a Nation that oil burns 
more than 350 million gallons of oil as gasoline on our highways each 
and every day. That is why we usually measure oil in barrels because 
gallons are too small a unit to bother contemplating.
  But the proponents will say, but 5 billion is a lot. It is like 
parking next year's production of SUVs for 2 years. But, guess what, 
during the second year, and the year after, and the year after that, ad 
infinitum, a whole new fleet of gas-guzzling SUVs will hit the highways 
and will not be metaphorically parked.
  The Nation is importing more than half its oil, but the proponents of 
H.R. 4 have done nothing more on CAFE than put a finger in the dike. 
The CAFE provision in the bill will have no long-range impact on the 
Nation's demand for oil. The CAFE language in the bill is a 
distraction, not a solution.
  Now, that might be okay if we did not have the technological 
wherewithal to build safe, affordable American cars and SUVs that meet 
a higher standard. But we do have that capability. In fact, we could 
reach CAFE standards far higher than the ones that we are proposing in 
this amendment, but we are taking a truly moderate approach.
  The Boehlert-Markey amendment would, after 5 years, include cars and 
SUVs and light trucks in a single fleet that would have to meet a 27.5 
mile per gallon average, the level cars must meet today. That gives the 
automobile manufacturers the flexibility, they get the flexibility to 
decide if they want to make cars more fuel efficient or SUVs more fuel 
efficient, or some combination of both.
  Our amendment creates new incentives for the ethanol industry because 
we would provide credits to cars that actually run on ethanol, not to 
cars that could use ethanol but do not. So we give automakers 
incentives to make sure that ethanol does become a commonly available 
fuel.
  In short, the standard we propose is flexible, fair, moderate and 
feasible. Members can tell that because our opponents have hit new 
rhetorical

[[Page H5116]]

heights in arguing against the amendment; but luckily, we have the 
latest science on our side. I refer Members to the report of the 
National Academy of Sciences that was released Monday. Here is what the 
Academy panel concluded:
  First, the National Academy of Sciences says having separate 
standards for cars and SUVs makes no sense. My colleagues can refer to 
pages ES-4 and 5-10 for confirmation.
  Second, the National Academy of Sciences says that raising fuel 
economy standards will be a net saver for consumers, and we want to 
help consumers save. Look at pages 4-7 to check that out.
  Third, the National Academy of Sciences says raising fuel economy 
standards will not hurt American workers, and they base this on the 
real experience of past decades. That is on pages 2-16.
  Fourth, the National Academy of Sciences says that raising fuel 
economy is perfectly feasible even with currently available technology, 
technology that is on the shelf, ready to be put into use, and even for 
higher standards than we are proposing. That is on page ES-5. And the 
front page of Automobile News that is on easel behind me illustrates 
the technology that auto companies already have to meet this new 
standard.
  Fifth, and most important of all, the Academy says fuel economy can 
be achieved ``without degradation of safety,'' again, without 
degradation of safety, so let us put that bogeyman to rest. That is on 
page 4-26.
  The opponents may say the automobile companies disagree. No surprise 
there. It is easier to keep making gas-guzzling cars, just like it was 
easier to keep making cars without seat belts and cars without air bags 
and cars without pollution control equipment, all advances that the 
auto industry now touts, even though it vehemently opposed each as they 
were initiated.

  This case is no different. Just look at the credibility of the auto 
industry. Here is what a top Ford executive said about safety standards 
in 1971. ``The shoulder harnesses, the headrests are a complete waste 
of money, and you can see that safety has really killed off our 
business.'' That is what the auto people said.
  Here is what GM said about pollution control in 1972. ``It is 
conceivable that complete stoppage of the entire production could occur 
with the obvious tremendous loss to the company,'' if we required 
pollution control equipment. Give me a break.
  I could go on and on with examples like this.
  Mr. Chairman, we should be used to these scare tactics by now and 
wise to them. Let us not believe the folks that said seat belts would 
destroy the auto industry when they say they fear for our safety if we 
raise CAFE standards.
  I am going to listen to the National Academy of Sciences. We have the 
evidence we need to raise CAFE standards, we just need the will, the 
will to give the public what it wants. The public wants better fuel 
economy if for no other reason than to save money. And what the 
National Academy of Sciences report demonstrates is that we can give 
them that fuel economy without depriving them, including me, of our 
SUVs, without compromising safety, without threatening jobs.
  Mr. Chairman, I urge support of the Boehlert-Markey-Shays-Waxman 
amendment.
  Mr. TAUZIN. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, for a year now I have been fighting tires that kill. I 
am on the floor today fighting an amendment that will kill. If the 
Boehlert amendment passes, the National Academy of Sciences says that 
this kind of an increase in CAFE too soon, too fast over a 4-year 
period, 46 percent increase, will force automakers to downsize and 
downweight automobiles, trucks, light trucks in particular, SUVs and 
minivans. They tell us, ``Additional traffic fatalities would be 
expected.'' That is the National Academy of Sciences.
  Now, the bill contains reasonable increases in fuel savings, 5 
billion gallons in this category of vehicles over the next 6 years. 
This is the language of the National Academy of Sciences warning us if 
my colleagues go further than the bill goes, my colleagues can expect 
fatalities.
  Mr. Chairman, I want to show Members the list of SUVs and vans 
regulated by the bill without this amendment. This is the list of all 
of the SUVs and vans that this amendment would literally replace in the 
law, sections that provide a 5-billion gallon savings in this list of 
vehicles.
  These vehicles alone consume 2.4 billion gallons a year. Our bill 
provides a savings of twice that, 5 billion.
  Keep to the bill. Do not kill Americans with this amendment.

                              {time}  1600

  Mr. BOEHLERT. Mr. Chairman, I ask unanimous consent that the total 
time in support of the Boehlert-Markey amendment be equally divided 
between the gentleman from Massachusetts (Mr. Markey) and the principal 
author.
  The CHAIRMAN pro tempore (Mr. Linder). Without objection, the 
gentleman from Massachusetts can control 10 minutes.
  There was no objection.
  Mr. MARKEY. Mr. Chairman, I yield 2 minutes to the gentleman from 
California (Mr. Waxman).
  Mr. WAXMAN. I thank the gentleman for yielding time to me.
  Mr. Chairman, I strongly support this CAFE amendment. It is urgently 
needed to restore some balance to this legislation. This is the most 
important conservation measure that we will have before us in the whole 
energy bill if this amendment is adopted. If this amendment is not 
adopted, I want Members to realize that the CAFE provisions in the bill 
itself are a mirage. The legislation claims to save 5 billion gallons 
of gasoline by 2010. This sounds like a lot of gasoline, but we are 
talking about a reduction of 5 billion gallons out of a pool of over 
2.5 trillion gallons. So even if the provisions worked as advertised, 
the 5 billion-gallon reduction translates into only a cut of two-tenths 
of 1 percent. But, in fact, this bill will not even achieve these 
minuscule savings. The fine print of the bill contains CAFE loopholes 
that will allow fuel consumption to increase by 9 billion gallons.
  Mr. Chairman, I include for the Record an analysis of the H.R. 4 
provisions which will explain why we will even go backwards if H.R. 4 
is adopted as it is written. It will allow under the Bush 
administration's analysis an increase of 9 million gallons. The 
loopholes make the CAFE provisions in this bill a step backward.
  Just this week, the National Academy of Sciences released a new study 
on CAFE that shows we can do much more. The Boehlert-Markey-Shays-
Waxman amendment will make reasonable, commonsense improvements in the 
fuel efficiency standards of our light trucks. And it will close the 
loopholes in the current law and in the bill before us.
  I urge support of the amendment.

  Analysis of the H.R. 4 Provisions Which Amend the Corporate Average 
                        Fuel Economy (CAFE) Law

       On Wednesday, August 1, 2001, the House of Representatives 
     is considering H.R. 4, the ``Securing America's Future Energy 
     Act of 2001.'' This legislation contains an amendment offered 
     by Rep. Richard Burr (R-NC) at Subcommittee which amends the 
     federal law governing automobile fuel economy. This amendment 
     was heralded by some as a significant increase in fuel 
     economy standards applicable to sport utility vehicles (SUVs) 
     and other light trucks. Upon analysis, this amendment appears 
     to be seriously flawed.


                             i. background

       Under current law, the Secretary of Transportation is 
     directed to prescribe by regulation average fuel economy 
     standards for light trucks 18 months prior to the beginning 
     of each model year. Sec. 32902(a). The standard is set at the 
     ``maximum feasible average fuel economy level'' that the 
     Secretary decides the manufacturers can achieve in that model 
     year. Id. In setting a standard, the Secretary is required to 
     consider technological feasibility, economic practicability, 
     the effect of other governmental motor vehicle standards on 
     fuel economy, and the need of the United States to conserve 
     energy. Sec. 32902(f). Under this approach, the maximum 
     feasible average fuel economy standard is determined on an 
     ongoing basis with new technology being recognized and 
     considered in the development of standards each and every 
     year.
       The current CAFE standard for light trucks is 20.7 miles 
     per gallon. Since 1995, the Secretary of Transportation has 
     not been permitted to revise this standard due to a 
     congressional prohibition on such action passed each year in 
     the appropriations process.


  ii. the improved fuel economy purported to be achieved by h.r. 4 is 
                             insignificant

       H.R. 4 purports to reduce the projected gasoline 
     consumption of light trucks manufactured between 2004 and 
     2010 by 5 billion

[[Page H5117]]

     gallons in the years 2004 through 2010. As discussed below, 
     the achievement of any improvement in fuel economy is in 
     doubt under this language. However, assuming that a 5 billion 
     gallon reduction in projected gasoline consumption is 
     achieved, this reduction is insignificant.
       Under this legislation, light trucks manufactured between 
     2004 and 2010 must reduce consumption by 5 billion gallons 
     over the years 2004 through 2010. During the period from 
     2004-2020, total consumption of petroleum is projected to be 
     2.27 trillion gallons of petroleum. Although 5 billion 
     gallons sounds like a lot of gasoline, it amounts to a mere 
     0.22% reduction in projected petroleum use. The Union of 
     Concerned Scientists has estimated that the fuel economy of 
     light trucks would only need to be improved by one mile per 
     gallon in model years 2004 through 2010 to achieve this goal.


                   iii. h.r. 4 undermines current law

       Proponents of H.R. 4 have stated that the 5 billion gallon 
     reduction in projected gasoline use is merely the floor for 
     increased fuel economy and that the integrity of the CAFE law 
     is preserved, allowing for any other appropriate improvements 
     in fuel economy to be made. Upon analysis, it appears that 
     H.R. 4 would actually encourage the consumption of more fuel 
     than it conserves, while substantially altering the way the 
     CAFE law functions and inhibiting further progress on fuel 
     economy.
     A. H.R. 4 wastes more gasoline than it would purport to save 
         by extending the flawed CAFE incentive for dual fueled 
         vehicles for an additional four years
       Even as H.R. 4 purports to save five billion gallons of 
     gasoline, it includes provisions that the Bush administration 
     has estimated would increase gasoline consumption by nine 
     billion gallons.
       H.R. 4 extends a flawed program which creates CAFE 
     incentives for dual fueled vehicles. Under current law, the 
     production of dual fueled automobiles earns significant CAFE 
     credits. As a result, manufactures produce many of these 
     vehicles. According to the New York Times, General Motors, 
     Ford Motor and the Chrysler unit of DaimlerChrysler have made 
     1.2 million dual-fuel vehicles, almost all of which are 
     designed to burn either ethanol or gasoline. These include 
     most Chrysler minivans and some Chevrolet S-10 pickups, Ford 
     Taurus sedans and Ford Windstar minivans. These vehicles 
     differ from other vehicles only in that they contain a $200 
     sensor for burning ethanol, which their owners are often not 
     even aware of.
       Dual fueled automobiles are manufactured to run on ethanol 
     yet virtually no vehicles actually do so. In fact, only 101 
     of the 176,000 services stations in the United States sell 
     nearly pure ethanol. Most of these service stations are in 
     the Midwest. There is not a single one on the West Coast and 
     there are only two on the East Coast--one in Virginia and one 
     in South Carolina.
       These credits have allowed the automakers to reduce the 
     average fuel economy of all vehicles they sell by five-tenths 
     to nine-tenths of a mile per gallon. Under current law these 
     credits are scheduled to sunset in 2004 unless the 
     Administration extends the programs for an additional four 
     years. H.R. 4 would statutorily extend the CAFE law until 
     2008, and allow for the credits to be extended until 2012.
       According to a draft report prepared by the Bush 
     Administration, continuing the program from 2005 to 2008 will 
     increase gasoline consumption by nine billion gallons. This 
     is almost twice as much fuels as H.R. 4 purports to save.
     B. H.R. 4 fundamentally alters the standard-setting process 
         for light trucks which may hinder incentives for advanced 
         technology vehicles
       H.R. 4 substitutes the yearly approach under current law 
     with an approach that will set standards from 2004 through 
     2010. This is a substantial weakening of current law. While 
     no one can definitively predict what the ``maximum feasible 
     average fuel economy level'' will be in the future, the 
     ``maximum feasible'' level is clearly higher than the 
     miniscule requirements of H.R. 4.
     C. H.R. 4 removes incentives for advanced weight reduction 
         technologies and materials
       Automakers have been learning that safer, more fuel 
     efficient vehicles can be manufactured using lighter weight 
     materials, such as aluminum, or through advanced engineering 
     approaches like unibody construction which can produce 
     lighter and structurally sound frames. Under the current 
     system, manufacturers have incentives to deploy these weight 
     reduction technologies and materials, because all light duty 
     trucks fall under a single CAFE standard.
       H.R. 4 promotes a weight-based system for establishing fuel 
     economy standards for light trucks. This approach could 
     eliminate the incentives for these advanced construction 
     technologies and materials by assuming that the weight of 
     light trucks cannot be reduced.
     D. H.R. 4 does not address passenger vehicles and requires no 
         improvements in the fuel economy of diesel vehicles
       H.R. 4 does not direct any increase in the CAFE standards 
     for passenger cars which make up about half of the new 
     vehicles sold in the United States.
       Similarly, H.R. 4 sets no targets for reducing the 
     consumption of diesel fuel. The auto manufacturing industry 
     has indicated that they intend to expand the use of diesel 
     engines in the coming years. In fact, as discussed below H.R. 
     4 gives manufacturers additional incentives to increase 
     diesel use as a means of meeting their obligations under H.R. 
     4.
     E. H.R. 4 creates incentives for greater reliance on diesel 
         vehicles
       H.R. 4 sets a goal for avoided gasoline consumption for 
     light trucks manufactured between 2004 and 2010. The way H.R. 
     4 is drafted this goal can be achieved by producing more 
     diesel-powered light trucks and fewer gasoline-powered light 
     trucks. Automakers could comply with the letter of the law by 
     merely increasing the portion of light trucks that are 
     diesel-powered.

  Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Michigan (Mr. Camp).
  (Mr. CAMP asked and was given permission to revise and extend his 
remarks.)
  Mr. CAMP. I thank the gentleman for yielding me this time.
  Mr. Chairman, I rise today in strong opposition to the amendment 
offered by my colleagues, Mr. Markey and Mr. Boehlert that would set a 
combined fleet standard of 27.5 miles per gallon for cars and trucks. 
This amendment will cost jobs, consumer choice and safety.
  This large increase in the light truck standard would have 
devastating impacts on light truck production from American automakers 
and threaten the jobs of over 1,000,000 auto workers in Michigan and 
many more around the country.
  This amendment would also substantially restrict the ability of 
American automakers to continue to provide the vehicles that American 
consumers are purchasing. The product changes needed to accomplish this 
level of increase would adversely affect the most popular light trucks 
on the road-including restrictions on the sale by American automakers 
on the large pick-up trucks and SUV's that represent 50 percent or more 
of light truck sales.
  Finally, raising CAFE standards would put Japanese automakers at a 
strategic advantage over U.S. automakers. The Japanese have an edge of 
a several miles per gallon because they have huge amounts of banked 
CAFE credits from the surpluses they have run in the past. This allows 
the Japanese to take advantage of selling larger vehicles in our market 
that do not meet the CAFE standards that U.S. automakers are expected 
to meet. Essentially, Japanese automakers have a credit cushion that 
would not require any product changes to meet CAFE for about two model 
years before it exhausts its banked CAFE credits. This disparity will 
cripple the U.S. auto industry. I encourage my colleagues to vote 
against this amendment.
  Mr. DINGELL. Mr. Chairman, I yield myself 1\1/2\ minutes.
  (Mr. DINGELL asked and was given permission to revise and extend his 
remarks.)
  Mr. DINGELL. Mr. Chairman, this amendment affords you a rare 
opportunity to cast a vote for more jobs, for fewer deaths and injuries 
on the highway and against sharp price increases in the most popular of 
our vehicles.
  All you have got to do is vote ``no'' on the amendment. I urge you to 
do so.
  Take a look at the jobs that are involved here. Those are where your 
constituents work in automobile plants. There is nothing in the base 
bill which would preclude the Secretary of Transportation from fixing 
the levels of CAFE at those which are fixed by the Markey amendment. 
All that they would have to do is to find that it is technologically 
feasible and economically desirable and possible to so do.
  The Secretary now can and will under the base bill save 5 billion 
gallons of gasoline. That is equivalent to taking off the road the 
production of 1999 pickups and SUVs for a period of 2 years. In a word, 
that ain't hay.
  I would tell you some other things about this. The UAW and the 
American autoworkers are going to be most hurt if this amendment is 
adopted. It will force the auto companies to eliminate 135,000 jobs now 
held by American working men and women. It will force GM to close 16 of 
its plants and DaimlerChrysler to close two plants. That is about as 
bad as it gets until you consider that each auto company job supports 
seven other supplier jobs throughout the American economy.
  What about safety? The National Academy of Sciences says that the 
higher CAFE standards contribute to more deaths and injuries by 
creating lighter and less safe vehicles.
  I urge my colleagues to vote ``no'' on this amendment.
  Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Indiana (Mr. Buyer).
  (Mr. BUYER asked and was given permission to revise and extend his 
remarks.)

[[Page H5118]]

  Mr. BUYER. Mr. Chairman, I rise in opposition to the Markey-Boehlert 
amendment.
  Mr. Chairman, I rise in opposition to further increases in CAFE 
standards, and in defense of the common sense compromise that the 
Energy and Commerce Committee has included in the energy bill.
  Like most everyone, I support fuel conservation. Conservation can 
reduce dependence on foreign oil and enhance environmental protection. 
That's why the Committee developed a compromise that sets an achievable 
conservation goal while protecting jobs and safety. The compromise 
would produce substantial fuel savings by setting a goal of saving 5 
billion gallons between 2004 and 2010. This is a good and balanced 
compromise.
  But some want to go beyond this compromise and set a new CAFE number. 
This would be a big mistake because this amendment will jeopardize jobs 
and public safety.
  Proponents of the amendment also seem to disregard these safety 
concerns. A strong and growing body of evidence indicates that 
increased CAFE standards result in increased traffic deaths. We 
shouldn't pass these kinds of huge increases without fully 
understanding or considering these safety concerns.
  Let's conserve fuel, but let's do it safely. Support the Committee's 
compromise, oppose further CAFE increases.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from New 
Hampshire (Mr. Bass), a valued member of the Committee on Energy and 
Commerce.
  Mr. BASS. Mr. Chairman, I rise in opposition to this amendment as one 
who believes that fuel efficiency in light trucks and SUVs should be 
improved. But this is not the time for this amendment. For the last 6 
years, DOT has been barred from examining the CAFE standards. Just 
yesterday, or the day before, the NAS released its report. Most of us 
have had almost no time to examine this report, and nowhere in this 
report am I under the impression that it recommends an approach similar 
to that envisioned by this amendment.
  This amendment could have detrimental effects on a very delicate 
economy in this country. It may impact safety, as we have already 
heard. I am assured by the chairman of the Committee on Energy and 
Commerce that we will have complete hearings on this whole issue of 
CAFE and where we should be headed and come up with a real plan and not 
a knee-jerk reaction to a problem that has come up in the last 6 
months.
  Mr. Chairman, this amendment is premature, it is potentially 
counterproductive, and I think we should step back, relax, and support 
the committee in its reasonable efforts. It is a good start on the 
process of improving fuel economy.
  Mr. BOEHLERT. Mr. Chairman, I yield 30 seconds to the gentlewoman 
from Maryland (Mrs. Morella).
  Mrs. MORELLA. Mr. Chairman, I urge this body to vote in support of 
the Boehlert-Markey amendment. We heard that earlier this week the 
National Academy of Sciences issued their long-awaited report which 
concluded that technologies currently exist which can help our Nation 
substantially increase fuel economy. This amendment simply moves this 
conclusion forward. By raising the average fuel economy standards for 
cars and light trucks, we will save more oil than the most generous 
estimates suggest that ANWR would provide.
  The NAS report also concludes that these improvements are both safe 
and economically affordable. The Boehlert-Markey amendment allows our 
Nation the opportunity to be a world leader in the development and 
advancement of new technologies to improve our environment.
  Vote ``yes.''
  Mr. MARKEY. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, in 1974, the average for automobiles and light trucks 
in the United States was 12.9 miles per gallon. There was an energy 
crisis. In 1975, Congress responded. And they increased to 26.2 miles 
per gallon the fleet average. But believe it or not by 1981 they had 
already reached 24.6 miles per gallon, almost a doubling. Today, it is 
back to 24.7 miles per gallon. Our amendment, the Boehlert-Markey-
Shays-Waxman amendment increases the average up to 27.5 miles per 
gallon, a 1.3-mile-per-gallon increase since 1987.
  We have deployed the Internet since then, the human genome project, 
the Soviet Union has collapsed. We are arguing for a 1.3-mile-per-
gallon increase since 1987, by the way, equal to how much oil is in the 
Arctic wilderness if you want to avoid having to vote to drill in that 
sacred land.
  Mr. TAUZIN. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman 
from New Mexico (Mrs. Wilson).
  Mrs. WILSON. Mr. Chairman, I think we need to keep in mind that the 
base bill we have been offered here saves 5 billion gallons of gasoline 
and does it flexibly, by giving some options to manufacturers to be 
able to do this safely. The National Academy of Sciences says that it 
may be possible to increase fuel economy for light trucks over the next 
10 to 15 years, but the sponsors of this amendment want to do it in 4 
years. The only way you can do that is to reduce the weight of these 
vehicles, which compromises safety.
  In February of 1998, I was driving down the road from Santa Fe to 
Albuquerque and a truck in front of me dropped something off the back 
end. I swerved to avoid it. I avoided it, but the car started to roll 
at 75 miles an hour. I walked away that day. I had a lot to be thankful 
for. But the thing I was most thankful for was that I was alone in the 
car.
  Mr. Chairman, women make most of the decisions in this country about 
what car to buy. It is the same in my family. I drive a Subaru Outback 
SUV because it is safe for my two little kids in the back seat. I want 
efficient vehicles in this country. This base bill gives it to us. But 
I am not willing to compromise their safety by an accelerated standard 
that is not technically possible.
  Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the 
distinguished gentleman from Pennsylvania (Mr. Doyle).
  (Mr. DOYLE asked and was given permission to revise and extend his 
remarks.)
  Mr. DOYLE. Mr. Chairman, I rise in opposition to the Boehlert-Markey 
amendment. Every American supports increasing the fuel efficiency of 
the vehicles that we drive, but the question that we are all faced with 
today is, what cost to our safety, our economy and our life-styles are 
we willing to accept to meet the unreasonable standards imposed by this 
amendment?
  The bill we are debating will significantly reduce fuel consumption 
while ensuring that consumer safety and American jobs are not 
compromised. This balance will be threatened by this amendment.
  The American auto and steel industries are working together to 
increase fuel economy through technologies such as zero emission fuel 
cells and lightweight steel. These technologies will decrease 
emissions, increase fuel economy, and preserve the high safety 
standards that protect each and every one of us. If this amendment 
passes, over 18 plants and 135,000 automotive jobs will be lost in 
addition to thousands of jobs in the American steel industry, an 
industry already facing high unemployment as a result of dumping of 
illegal steel into American markets.
  In addition to the steel and automotive industries, workers in the 
rubber, aluminum, plastics, electronics and textile industries will not 
escape the job cuts that will be forced on the American economy. 
Furthermore, the National Highway Traffic Safety Administration has 
confirmed that higher CAFE standards may result in the use of weaker 
materials in construction which will increase the likelihood of injury 
and death on our national roadways.
  For these reasons, for the loss of American jobs, the cost to the 
American economy and the safety of the American consumer, I ask that we 
defeat this amendment.
  Mr. BOEHLERT. Mr. Chairman, I yield 30 seconds to the gentleman from 
Maryland (Mr. Gilchrest).
  Mr. GILCHREST. Mr. Chairman, I thank the gentleman for yielding time.
  I guess the question here is, for those of us who want a vote on this 
increase in gas mileage is, is it technically feasible? Do we have the 
brains, the will, the initiative to increase gas mileage and improve 
safety of these vehicles? The answer is yes, we have the brains, the 
skill, the technology. We can increase gas mileage, improve the 
environment and provide safety for those Americans who choose to buy 
SUVs or light trucks.

[[Page H5119]]

  I urge support of the amendment.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 1 minute to the 
gentleman from Michigan (Mr. Upton), the chairman of the Subcommittee 
on Telecommunications and the Internet of the Committee on Energy and 
Commerce.
  Mr. UPTON. Mr. Chairman, I would like to support the Boehlert 
amendment, but I cannot. The technology just is not ready yet.
  One of the arguments presented here today is that the auto industry 
cried wolf in the 1970s on new CAFE standards and at the end of the day 
met the standards. But at what cost? More job loss and more market 
share loss. Can the auto industry meet this new standard called for in 
this amendment? Of course they can.

                              {time}  1615

  But at what expense? More market loss and more job loss.
  Last year, this year, next year the auto industry will be spending 
hundreds of millions of dollars each year on new technologies designed 
to improve efficiencies and reduce our dependence on foreign oil. One 
of them is the hydrogen fuel cell. Well, guess what? There is a limited 
supply of R&D dollars; and if they are forced to meet this new 
standard, there will not be the dollars to develop this new standard.
  It is hoped that those cars will be in the showrooms in the next 8 to 
10 years. If this amendment passes, it will not be 8 to 10 years; it 
will be more than 10 years away. Is that what we want? I do not think 
so.
  Please join me in voting no. We have the technology to make this 
thing work. This amendment takes those dollars away and will hurt all 
consumers, period.
  Mr. MARKEY. Mr. Chairman, I yield 1 minute to the gentlewoman from 
California (Ms. Eshoo).
  Ms. ESHOO. Mr. Chairman, I thank the gentleman from Massachusetts for 
yielding me time.
  I rise in support of the Markey-Boehlert amendment. Let me state why. 
In the voices of my children, who are 32 and 30 years old, this debate 
is really about yesterday. What this amendment represents is tomorrow, 
is the future. It is exactly why people are attracted to America. So 
what we are battling is yesterday with this amendment.
  The sham automobile efficiency provision in this bill is the 
proverbial drop in the oil bucket. They are talking 5 billion gallons 
of gasoline saved. We are talking 40 billion.
  How anyone can say this is about jobs and the American automobile 
industry, it is a joke. This is enough to say that the Edsel is making 
a comeback.
  The Congress can do better. The automobile industry is saying one 
thing. I understand that. We are not the automobile industry, we are 
the Congress of the United States. And when we vote this in, we are 
voting in less dependence on foreign oil, we are voting in high 
standards for our environment, we are saying you do not have to drill 
in ANWR, and we are saying that we have the technologies today to put 
into tomorrow's automobiles.
  Support this amendment. It is a step toward the future. We will be 
better off as a result of it.


                announcement by the chairman pro tempore

  The CHAIRMAN pro tempore (Mr. LaTourette). The Chair would ask that 
Members attempt to confine their remarks to the time yielded to them.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan (Mr. Knollenberg).
  Mr. KNOLLENBERG. Mr. Chairman, I thank the gentleman for yielding me 
time.
  Mr. Chairman, I strongly oppose this amendment. It does nothing more 
than punish the automobile industry for making cars that people want to 
buy.
  I am opposed for many reasons, but let me focus on three. This 
amendment will force Americans to drive smaller cars that are less safe 
than what we drive now. Smaller cars mean more traffic fatalities; a 
fact confirmed by the recent NAS report.
  This amendment will also have the devastating economic impact of 
affecting every worker in the auto industry whose job will be affected. 
There are seven others affected as a spin-off from the one worker in 
the factory.
  This amendment will also impose these new standards on an impossible 
timetable, which the NAS report explicitly argued against.
  Why should Congress adopt policies that cause economic hardship, 
reduce consumer choice and lessen auto safety? Obviously we should not.
  I urge my colleagues to oppose this harmful and dangerous amendment.
  Mr. BOEHLERT. Mr. Chairman, I yield such time as she may consume to 
the gentlewoman from Connecticut (Mrs. Johnson).
  (Mrs. JOHNSON of Connecticut asked and was given permission to revise 
and extend her remarks.)
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I rise in strong support 
of this amendment.
  Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the 
distinguished gentleman from Louisiana (Mr. John).
  (Mr. JOHN asked and was given permission to revise and extend his 
remarks.)
  Mr. JOHN. Mr. Chairman, I rise in opposition to the Boehlert-Markey 
amendment. I do not have any auto manufacturing plants in my district, 
so I am not opposing this amendment out of concerns for that industry. 
Representing the seventh district of Louisiana, which is very rural and 
agricultural and whose people's livelihood depends on light trucks and 
pickup trucks, I am concerned that this amendment would put unrealistic 
standards, given the time tables, on this class of vehicles. Even if 
these stringent standards, and I emphasize, even if these stringent 
standards can be met, it will certainly increase the cost of these 
vehicles, in some reports up to $7,000.
  My concern is that the manufacturers who make these vehicles, these 
light trucks and pickups, that this amendment will threaten their 
ability to continue making them. In fact, DaimlerChrysler says that 
they could not raise the fuel economy standards of their Dakota or 
Dodge Ram pickup trucks 50 percent in 5 years, as this amendment 
requires; and it would therefore possibly stop them from producing 
them.
  I am not sure if it was the intent of the authors of this amendment 
to unduly hurt the farmers, ranchers, contractors, electricians, 
plumbers, carpenters, construction workers, and many others who use 
pickups and light pickup trucks as their office on wheels. By forcing 
heavy commercial pickup trucks that weigh less than 10,000 pounds to 
achieve car CAFE standards, this amendment sets a standard that no one, 
and, I repeat, no one, has demonstrated achievable without compromising 
safety.
  I urge Members to vote no on this amendment.
  Mr. MARKEY. Mr. Chairman, I yield 1 minute to the gentleman from 
Massachusetts (Mr. Olver).
  Mr. OLVER. Mr. Chairman, the amendment before us requires only a 10 
percent increase in fleet fuel efficiency by model year 2007; but, by 
2010, it would save half a million barrels of oil a day, reduce our oil 
imports by 5 percent, and reduce carbon dioxide emissions by over 100 
million tons each year.
  But there is an even better reason to do this. Oil is the least 
abundant of all of our fossil fuels. All of it will be gone from this 
world before the end of this century if we and our fellow men continue 
to burn it at low efficiency. What then will we use for our industry, 
for the chemicals, clothing, construction materials, for every product 
used in our lives that is manufactured from polymers?
  It is in our national interests to reduce our dependence on foreign 
oil, but it is a matter of national security that we conserve our most 
important industrial feedstock. The National Academy of Sciences report 
released this week tells us the technology already exists to take this 
modest step.
  I urge my colleagues to support this bipartisan amendment.
  Mr. TAUZIN. Mr. Chairman, I yield 30 seconds to the distinguished 
gentleman from Michigan (Mr. Smith).
  (Mr. SMITH of Michigan asked and was given permission to revise and 
extend his remarks.)
  Mr. SMITH of Michigan. Mr. Chairman, I-94 runs east and west through 
my Congressional Michigan District

[[Page H5120]]

going into Detroit. This is the auto supply route. Many businesses in 
this area supply the auto industry. The estimate from General Motors is 
that we would lose with this amendment 65,000 jobs, Daimler-Chrysler 
estimates a $35,000 job loss, a total of 130,000. Let me tell you at 
least partially why this job loss happens. The way we calculate these 
averages of miles-per-gallon means that some auto imports, for example, 
have accumulated so many credits that they could actually continue to 
sell their less-miles-per-gallon trucks and displace our more gas 
efficient miles-per-gallon vehicles that we are not going to be able to 
sell because of this amendment. This means fewer sales and less 
employment.
  Mr. Chairman, I rise in opposition to this amendment.
  Since the CAFE standards were implemented in 1978, the market for 
passenger vehicles has been severely distorted. As a result, today, 
lights trucks account for over have of the new car market. The American 
people do not want small under-powered, and unsafe vehicles to 
transport their family. But under CAFE, there are fewer change cars 
available as alternatives.
  The recent report from the National Research Council report found 
that, ``CAFE standards, probably resulted in an additional 1,300 to 
2,600 traffic fatalities in 1993.'' Further, it noted that if the 
increase standards resulted in lighter or smaller vehicles, ``some 
additional traffic fatalities would be expected.''
  An earlier analysis reported in USA Today estimated that for each 
mile per gallon CAFE saved, 7,700 people lost their lives.
  There is another price we will pay with this amendment--lost jobs. 
GM, Ford, and Daimler-Chrysler say they would be forced to eliminate 
135,000 jobs. In my home state of Michigan, more than a million workers 
could be affected by this amendment.
  Mr. Chairman, this amendment would limit consumer choice, reduce 
vehicle safety, and throw people out of work. I urge my colleagues to 
vote ``no.''
  Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the 
distinguished gentleman from Michigan (Mr. Kildee).
  Mr. KILDEE. Mr. Chairman, I rise to oppose the Markey-Boehlert 
amendment to legislatively mandate increases in corporate average-fuel-
economy standards. While I support the goal of improved fuel economy, 
this mandate is not the answer.
  Despite proposing significant CAFE increases in the amendment, the 
phase-in time is a little more than 2 model years. Furthermore, it 
takes away flexibility mechanisms that allow auto makers to respond to 
unexpected changes in consumer behavior.
  The National Highway Traffic Safety Administration is the appropriate 
venue for CAFE review. NHTSA must consider the safety trade-offs, 
utility impacts, and economic feasibility of any CAFE increase.
  The National Academy of Sciences outlines these trade-offs in its 
report released this week. It warned of overly ambitious CAFE increases 
with short implementation periods. NAS stated that quick significant 
increases would have a detrimental effect on vehicle safety and the 
health of the auto industry.
  If we adopt the Markey-Boehlert amendment, tens of thousands of jobs 
will be jeopardized as production plans are significantly disrupted. By 
comparison, the current bill takes the right approach by allowing NHTSA 
to determine the appropriate timetable and the appropriate fuel economy 
standard.
  The auto industry is the largest manufacturing industry in the United 
States. We must be judicious in our approach and mindful of unintended 
consequences.
  Vote no on the amendment.
  Mr. MARKEY. Mr. Chairman, I yield 1 minute to the gentlewoman from 
California (Ms. Harman).
  (Ms. HARMAN asked and was given permission to revise and extend her 
remarks.)
  Ms. HARMAN. Mr. Chairman, this debate is not fundamentally about 
cars, tail pipes, or engine technology, it is about health and what 
policy gets our country to better air quality standards in the most 
cost-effective way.
  To be sure, CAFE standards are an imperfect tool. A fleet average has 
little bearing on what consumers are purchasing. Even though CAFE 
forces Detroit or Japan to manufacture a cleaner and more efficient 
vehicle, we see a proliferation of gas-guzzling SUVs, minivans, and 
trucks. They are what the consumer wants. If we are to increase fuel 
efficiency across the fleet of vehicles, we also need to change 
consumer behavior.
  In the Committee on Ways and Means title of this bill we begin to 
tackle the consumer side of the equation through tax incentives and 
credits for the purchase of electric, fuel cell, hybrid, alternative 
fuel, and advanced burn vehicles. Striking the right balance is hard.
  I opposed an earlier version of the Markey amendment in committee 
because I thought it imposed unreasonable burdens and unachievable 
goals. This amendment strikes a better balance. I believe industry can 
do this. I know that hybrid SUVs are close to production, and this 
amendment will push new technology solutions that are critical to 
increased fuel economy.
  I side with Markey-Boehlert, because it sets the direction in which 
we need to go.
  This debate is not about cars, tailpipes or engine technology. It's 
about health and what policy gets our country to better air quality 
standards in the most cost effective way.
  This most fundamental and basic element of the discussion is lost 
entirely when it hits Washington. We think of fuel efficiency as a 
technology issue, or a financial issue, or a complex policy issue. But 
Corporate Average Fuel Efficiency (CAFE) and other clean air act rules 
are fundamentally about protecting public health. Our children's health 
will be decided by the decisions we make today.
  We need nothing less than a massive shift of the tectonic plates of 
automobile tailpipe emissions policy and the standards used to promote 
efficiency and air quality improvement. Clearly the automakers have the 
resources to support further exploration of improved emissions 
reduction, but some of the onus must be placed on the consumer to buy 
the product and on the government to help consumers choose clean 
technology. Mandates should include a means of developing a consumer 
market for cleaner technology.
  That's why, in my view, the notion of average duel efficiency over a 
fleet of cars--the concept underlying CAFE standards--has not worked 
particularly well.
  A fleet average has little bearing on what consumers are purchasing. 
Even though CAFE forces Detroit to manufacture a cleaner and more fuel-
efficient vehicle, we see a proliferation of gas-guzzling SUVs, mini-
vans, and trucks. They are what the consumer wants and needs. As much 
as I love Toyota's Prius, it isn't a practical alternative for many 
families or workers in our society.
  If we are to increase fuel efficiencies across the fleet of vehicles, 
we also need to influence changes in consumer behavior. We need to work 
hand-in-glove to develop policies that make energy-efficient vehicles 
attractive purchasing options. Fortunately, in the Ways and Means title 
of this bill, we begin to tackle the consumer side of the equation 
through some tax incentives and credits for the purchase of electric, 
fuel-cell, hybrid, alternative fuel and advanced lean burn vehicles.
  Striking the right balance is hard. Both consumers and industry must 
be challenged. I opposed an earlier version of the Markey amendment in 
committee because I thought it imposed unreasonable burdens and 
unachievable goals. This amendment, co-authored by Messers. Markey and 
Boehlert, strikes a better balance. By moving SUVs and light trucks to 
the existing CAFE standards for cars--over five years--it closes the 
SUV loophole and challenges industry to clean up its most popular 
models.
  I believe industry can do this. The timetable for achieving the 
target miles-per-gallon may be aggressive given the kinds of 
investments that must be made in retooling a new car line. But I know 
that hybrid SUVs are close to production, and this amendment will push 
new technology solutions that are critical to increased fuel 
efficiency.
  This is a hard choice. But because we are in the business of making 
choices, I side with Markey-Boehlert as pointing in the direction we 
want to go. Combined with emerging technologies and tax incentives 
influencing consumer behavior, I think the goals are attainable.
  Support Markey-Boehlert.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan (Mr. Rogers), a leader in the construction of the reasonable 
provisions of the current bill.
  Mr. ROGERS of Michigan. Mr. Chairman, I am proud to hear the previous 
speaker talk about adverse health effects. You cannot get a more 
serious adverse health effect than death. The National Academy of 
Sciences report says one thing, if you arbitrarily, aggressively raise 
CAFE standards, more Americans will die.
  Do we want politicians on this floor setting a political number that 
really

[[Page H5121]]

is not based on science, or do we want engineers, scientists, and moms 
making the decision about what goes on the road and how we get to 
conservation?
  We chased moms out of station wagons in the seventies with CAFE 
increases, and they chose, for safety reasons for themselves and their 
families, minivans. We are fast approaching trying to chase moms out of 
minivans. Moms know best about safety for their family.
  There are two ways to get here, Mr. Chairman: the way that this 
chairman of the committee has engineered, that says we want scientists 
and engineers to, over time, develop conservation standards that we 
know allows these vehicles to be safe; or the political CAFE amendment 
increase that says we want smaller, shorter wheelbases, lighter cars, 
that we know will take the lives of Americans, independent review said 
as many as 7,000 per mile a gallon. That is 53,000 families.
  Mr. Chairman, make the choice today. Let scientists, engineers, and 
moms make the choice, not politicians on this floor.
  Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the 
distinguished gentleman from New York (Mr. Towns).
  Mr. TOWNS. Mr. Chairman, I have great respect for the authors of this 
amendment, the gentleman from Massachusetts (Mr. Markey) and the 
gentleman from New York (Mr. Boehlert), but this is a discriminatory 
amendment that is ill conceived and counterproductive. It would bring 
about a tremendous job loss, and that is the last thing we need at this 
particular time. I am talking about high-paying jobs, jobs where people 
are well paid and able to support their family and be able to live a 
strong and positive life.
  I understand what the drafters are trying to do with this amendment, 
but this is the wrong way to go about it. This is a dangerous 
amendment.

                              {time}  1630

  I ask my colleagues to vote no on this amendment. The timing could 
not be worse.
  I am hoping that my colleagues will recognize that fact and would 
even withdraw this amendment. But if they do not withdraw it, then I 
would ask my colleagues to vote no.
  Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentleman from 
Ohio (Mr. Sawyer).
  Mr. BOEHLERT. Mr. Chairman, I also yield 30 seconds to the gentleman 
from Ohio (Mr. Sawyer).
  (Mr. SAWYER asked and was given permission to revise and extend his 
remarks.)
  Mr. SAWYER. Mr. Chairman, I rise in support of the amendment. The 
Academy recommendation lays before us a framework for improving CAFE 
that is complex. It includes tradeable efficiency credits and weight-
based fuel economy targets. It is complex, but we need to do it. We 
should begin now and move forward with care.
  Do we have the technology to achieve it? Sure, we do. Improved 
aerodynamics, advances in engine management and combustion 
technologies, tire technology, advanced polymer materials that reduce 
weight and add strength, all of this is within our grasp. But 
production inertia and market acceptance rates may make the proposed 
time lines difficult, and perhaps impossible, so I have sympathy with 
the opponents of this amendment.
  But we need to move the debate forward. Neither the amendment nor the 
bill includes the underlying recommendations of the Academy, so they do 
not fix the embedded problems in CAFE. So I support this amendment in 
the hope that it will not end, but start, the serious discussion that 
we need to have to move this process forward.
  Mr. TAUZIN. Mr. Chairman, I am pleased to yield 1 minute to the 
gentleman from Wisconsin (Mr. Ryan).
  Mr. RYAN of Wisconsin. Mr. Chairman, I thank the gentleman for 
yielding time.
  Mr. Chairman, we all want higher fuel efficiency for cars. Everybody 
believes in that goal, but we do not want to accomplish this goal at 
the expense of vehicle safety and workers' jobs.
  This chart shows what the amendment is proposing. They are proposing 
a steep, steep increase in CAFE standards in an unworkable time line.
  One point that I have noticed that has not been shared on the floor 
today is this: The foreign automobile manufacturers have more CAFE 
credits than the American automobile manufacturers do. So when this 
amendment passes, what we will be accomplishing is a shift in market 
share. We will be compromising American jobs. That means less Tahoes, 
less Suburbans, less Cherokees, less Wranglers and more Land Cruisers, 
more Range Rovers. So we are not going to pull these big SUVs off the 
road because the market demand is still there.
  Mr. Chairman, this will put us at a competitive disadvantage. It will 
cost us jobs, thousands of jobs in America with no practical result, 
because the gap will be filled by the foreign competitors who will get 
an unfair competitive advantage over American auto producers if this 
amendment passes.
  Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentlewoman from 
California (Ms. Woolsey).
  Ms. WOOLSEY. Mr. Chairman, so here is the question for all of us: If, 
in fact, the U.S. auto industry suffers from increased CAFE standards, 
then what is the effect and how much does the industry suffer and how 
much does our economy suffer when Americans import fuel-efficient 
automobiles from other countries? Because with the high cost of fuel, 
the detrimental effect on our environment, and the interest of American 
consumers to be independent of foreign oil, we will be purchasing fuel-
efficient autos, domestic or foreign.
  Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentleman from 
Texas (Mr. Doggett).
  Mr. DOGGETT. Mr. Chairman, it is called CAFE, but unless this 
amendment is approved, special interests will enjoy another free lunch 
as they guzzle down plates piled high to satisfy a very hefty energy 
appetite. With 200 million tons of global-warming pollution pouring 
through this unwarranted loophole every year, all the rest of us are 
left choking on this all-you-can-pollute buffet, and billions of 
gallons of gasoline are wasted.
  Manufacturers have had 6 long years of Republican congressional 
dining at Cafe Delay to prepare for fuel economy. Now their allies 
combined some new ``do-little'' language with the same old doom-and-
gloom scenario they have previously relied upon to oppose everything 
from seat belts to rollover protection.
  Reject the excuses and enact genuine fuel economy.
  Mr. TAUZIN. Mr. Chairman, I yield 30 seconds to the gentlewoman from 
California (Mrs. Bono).
  Mrs. BONO. Mr. Chairman, I thank the gentleman for yielding time.
  Mr. Chairman, I am concerned that unrealistic CAFE standards will 
result in more highway deaths. In 1999, a USA Today article reported on 
a National Highway Traffic Safety Administration and insurance safety 
study which found that in the years since CAFE standards were mandated 
under the Energy Policy and Conservation Act of 1975, about 46,000 
people have died in crashes that they would have survived if they had 
been traveling in heavier cars.
  We increased fuel efficiency standards for SUVs in this bill, but we 
did it in a responsible manner which balances the needs of the 
environment with the critical need to maintain high safety standards. 
As a mother of two children, I value these safety concerns and cannot 
support a measure which would compromise the safety of our kids.
  Mr. BOEHLERT. Mr. Chairman, I yield 30 seconds to the gentleman from 
Connecticut (Mr. Shays).
  Mr. SHAYS. Mr. Chairman, we will not have a world to live in if we 
continue our neglectful ways. Apologists for the automobile industry 
are going to kill America if they keep it up.
  Two-thirds of all the oil used in the United States is consumed in 
the transportation sector. If SUVs and other light trucks were held to 
the same efficiency standards as today's cars, we would save more 
gasoline in just 3 years than is economically recoverable from ANWR, 
and these drivers would save $25 billion a year.
  Higher mileage standards promise cleaner air and water, less oil 
imports, and billions and billions of dollars saved to the consumer.
  Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentleman from 
Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Chairman, there is no longer a rational reason 
for

[[Page H5122]]

us to distinguish between SUVs and light trucks and other vehicles. 
They are mostly used as passenger cars in the first place.
  The base bill simply does not provide enough conservation: 
approximately 6 days of oil consumption over the next 9 years. There is 
a big difference between the average car and a 13-mile-per gallon SUV. 
It is the equivalent of leaving a refrigerator door open for 6 years 
for the average year.
  I would suggest that the opponents of this amendment are selling 
American industry short. There is no reason the American auto industry 
cannot keep pace with foreign competition. We should not drive 
Americans into their hands.
  Mr. TAUZIN. Mr. Chairman, I yield 1 minute to the gentleman from 
Nebraska (Mr. Terry), who deserves a great deal of credit for bringing 
the CAFE improvements in our bill forward.
  Mr. TERRY. Mr. Chairman, I rise in strong opposition to this 
amendment.
  This bill, our bill allows the Department of Transportation to 
explore many possible solutions for conservation, such as a weight-
based system so we do not treat a Ford pickup truck like a Ford Fiesta; 
so that our farmers can do their hard work and our contractors can 
store their equipment in a vehicle a bit more substantial than the 
standard hatch-back.
  By giving authority over fuel economy to the DOT, we allow more 
flexibility to deal with this complex issue with greater expertise.
  We have heard about the NAS study which reaches dozens of 
conclusions, but yet this amendment relies on only one. If we were to 
take this report in its totality, we find that we should implement a 
weight-based system, which this amendment forbids, and we must not 
downweight our vehicles which, in essence, this amendment demands, and 
that we must continue to develop technology, which this amendment does 
not encourage. And we must allow sufficient time for its 
implementation, which this amendment also does not do.
  Mr. Chairman, I urge my colleagues to support H.R. 4 and Buy 
American. Vote against this amendment.
  Mr. MARKEY. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, the fuel economy standards in the United States are 
going down. In 1986, we peaked at about 26\1/2\ miles per gallon, and 
we have been going backwards ever since.
  Now, if we have an energy crisis, should we not look at where we put 
two-thirds of all of the oil that we consume in the United States? It 
goes into gasoline tanks. If we want to do anything about an energy 
crisis, we have to look at gasoline tanks.
  Now, our amendment just takes America back pretty much to where it 
was in 1986. This is not rocket science. This is auto mechanics. Every 
high school in America has a course on this.
  Do not tell us this is going to cause some huge, unbearable burden to 
be imposed upon the auto industry. The burdens are upon the American 
people. We are importing too much oil.
  The environmental consequences? Well, the President says he cannot 
comply with the Kyoto Treaty. Well, if we do not do anything about 
automobiles, we are not going to do anything about Kyoto. The American 
Lung Association says that there is a dramatic increase in lung 
disease, in asthma, especially among young children in this country. If 
we do not do anything about automobile emissions into our atmosphere, 
we are not doing anything about the American Lung Association's top 
agenda item.
  So I say to my colleagues, we have a choice. All we are asking is 
that we improve by 1.3 miles per gallon the American auto fleet from 
where it was in 1986, and we give them until 2007, 21 years, to make 
that huge technological leap. We do not want to hear another word about 
the energy crisis, about how you cannot comply with Kyoto, about how 
you care about all the additional health care consequences in the 
country, if you cannot find some way of dealing with what is obviously 
the major cause of most of the problems in the environment in our 
country.
  Mr. DINGELL. Mr. Chairman, I yield the remainder of our time to the 
distinguished gentleman from Michigan (Mr. Bonior), the minority whip 
and my good friend.
  Mr. BONIOR. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  Mr. Chairman, the auto industry has helped build this Nation. It has 
provided economic opportunities for generations, including generations 
of my own family. I believe a strong, a vibrant, and a domestic auto 
industry will continue to be the key to our economic future.
  For our prosperity to continue, we need to lead the way in using new 
technologies that protect our environment. Hybrid and cell-fuel-powered 
vehicles are the future, and the future will soon be upon us. Our 
domestic auto companies are moving in that direction, and they are 
moving in that direction with speed. Forward. General Motors, Daimler 
Chrysler, they all recognize that consumers want safe, fuel-efficient 
vehicles. They have announced that they will increase the average fuel 
economy in the sports utility by up to 25 percent over the next 5 
years.
  In the future, we will be talking about ways to store hydrogen and 
natural gas in our fuel cells, not increasing CAFE. The CAFE debate 
that we are having on this floor may very well be one of the last that 
we will have. The future is in these new technologies, in hydrogen fuel 
cells, in hybrids that will be coming on line in some of our 
automobiles within a year.



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