Congressional Record, Volume 147 Issue 110 (Wednesday, August 1, 2001)

[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.''.

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.''.

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.

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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