[Congressional Record Volume 147, Number 165 (Monday, December 3, 2001)]
[Senate]
[Pages S12315-S12329]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2214. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 2171 submitted by Mr. Lott and intended to be proposed to 
the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) to 
provide for pension reform, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

         TITLE ____--ELECTRIC POWER INDUSTRY TAX MODERNIZATION

     SEC. ____01. TAX-EXEMPT BOND FINANCING OF CERTAIN ELECTRIC 
                   FACILITIES.

       (a) Rules Applicable to Electric Output Facilities.--
     Subpart A of part IV of subchapter B of chapter 1 of the 
     Internal Revenue Code of 1986 (relating to tax exemption 
     requirements for State and local bonds) is amended by adding 
     after section 141 the following new section:

     ``SEC. 141A. ELECTRIC OUTPUT FACILITIES.

       ``(a) Election To Terminate Tax-Exempt Bond Financing for 
     Certain Electric Output Facilities.--
       ``(1) In general.--A governmental unit may make an 
     irrevocable election under this paragraph to terminate the 
     issuance of certain obligations described in section 103(a) 
     for electric output facilities. If the governmental unit 
     makes such election, then--
       ``(A) except as provided in paragraph (2), on or after the 
     date of such election the governmental unit may not issue 
     with respect to any electric output facility any bond the 
     interest on which is excluded from gross income under section 
     103, and
       ``(B) notwithstanding paragraph (1) or (2) of section 
     141(a) or paragraph (4) or (5) of section 141(b), no bond--
       ``(i) which was issued by such unit with respect to an 
     electric output facility before the date of enactment of this 
     subsection, the interest on which was exempt from tax on such 
     date,
       ``(ii) which is an eligible refunding bond that directly or 
     indirectly refunds a bond issued prior to the date of 
     enactment of this section, or
       ``(iii) which is described in paragraph (2)(D), (E), or 
     (F),

     shall be treated as a private activity bond.
       ``(2) Exceptions.--If an election is made under paragraph 
     (1), paragraph (1)(A) does not apply to any of the following 
     bonds:
       ``(A) Any qualified bond (as defined in section 141(e)).
       ``(B) Any eligible refunding bond (as defined in subsection 
     (d)(6)).
       ``(C) Any bond issued to finance a qualifying transmission 
     facility or a qualifying distribution facility owned by the 
     governmental unit.
       ``(D) Any bond issued to finance equipment or facilities 
     necessary to meet Federal or State environmental requirements 
     applicable to an existing generation facility owned by the 
     governmental unit.
       ``(E) Any bond issued to finance repair of any existing 
     generation facility owned by the governmental unit. Repairs 
     of facilities may not increase the generation capacity of the 
     facility by more than 3 percent above the greater of its 
     nameplate or rated capacity as of the date of enactment of 
     this section.
       ``(F) Any bond issued to acquire or construct--
       ``(i) a qualified facility (as defined in section 45(c)(3)) 
     if such facility is owned by the governmental unit and is 
     placed in service during a period in which a qualified 
     facility may be placed in service under such section, or
       ``(ii) any energy property (as defined in section 48(a)(3)) 
     that is owned by the governmental unit.

     This subparagraph shall not apply to any facility or property 
     that is constructed, acquired or financed for the principal 
     purpose of providing the facility (or the output thereof) to 
     nongovernmental persons.
       ``(3) Form and effect of election.--
       ``(A) In general.--An election under paragraph (1) shall be 
     made in such a manner as the Secretary prescribes and 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.
       ``(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 
     which is not a governmental unit and 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 such election, if such purchase is under a 
     contract executed after such election.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) Existing generation facility.--The term `existing 
     generation facility' means an electric generation facility 
     owned by the governmental unit on the date of enactment of 
     this subsection and either in service on such date or the 
     construction of which commenced prior to June 1, 2000.
       ``(B) Qualifying distribution facility.--The term 
     `qualifying distribution facility' means a distribution 
     facility over which open access distribution services 
     described in subsection (b)(2)(C) are available.
       ``(C) Qualifying transmission facility.--The term 
     `qualifying transmission facility' means a local transmission 
     facility (as described in subsection (c)(3)(A)) over which 
     open access transmission services described in subparagraph 
     (A) or (B) of subsection (b)(2) are available.
       ``(b) Permitted Open Access Activities and Sales 
     Transactions Not a Private Business Use for Bonds That Remain 
     Subject to Private Use Rules.--
       ``(1) General rule.--For purposes of this section and 
     section 141, the term `private business use' shall not 
     include a permitted open access activity or a permitted sales 
     transaction.
       ``(2) Permitted open access activities.--For purposes of 
     this section, the term `permitted open access activity' means 
     any of

[[Page S12316]]

     the following transactions or activities with respect to an 
     electric output facility owned by a governmental unit:
       ``(A) Providing nondiscriminatory open access transmission 
     service and ancillary services--
       ``(i) pursuant to an open access transmission tariff filed 
     with and approved by FERC, including an acceptable 
     reciprocity tariff but, in the case of a voluntarily filed 
     tariff, only if the governmental unit voluntarily files a 
     report with the FERC within 90 days of the date of enactment 
     of this section relating to whether or not the issuer will 
     join a regional transmission organization,
       ``(ii) under an independent system operator or regional 
     transmission organization agreement approved by FERC, or
       ``(iii) in the case of an ERCOT utility (as defined in 
     section 212(k)(2)(B) of the Federal Power Act (16 U.S.C. 
     824k(k)(2)(B))), pursuant to a tariff approved by the Public 
     Utility Commission of Texas.
       ``(B) Participation in--
       ``(i) an independent system operator agreement, or
       ``(ii) a regional transmission organization agreement,

     which has been approved by FERC, or by the Public Utility 
     Commission of Texas in the case of an ERCOT utility (as so 
     defined). Such participation may include transfer of control 
     of transmission facilities to an organization described in 
     clause (i) or (ii).
       ``(C) Delivery on a nondiscriminatory open access basis of 
     electric energy sold to end-users served by distribution 
     facilities owned by such governmental unit.
       ``(D) Delivery on a nondiscriminatory open access basis of 
     electric energy generated by generation facilities connected 
     to distribution facilities owned by such governmental unit.
       ``(3) Permitted sales transaction.--For purposes of this 
     subsection, the term `permitted sales transaction' means any 
     of the following sales of electric energy from existing 
     generation facilities (as defined in subsection (a)(4)(A)):
       ``(A) The sale of electricity to an on-system purchaser, if 
     the seller makes available open access distribution service 
     under paragraph (2)(C) and, in the case of a seller that owns 
     or operates transmission facilities, if such seller makes 
     available open access transmission under subparagraph (A) or 
     (B) of paragraph (2).
       ``(B) The sale of electricity to a wholesale native load 
     purchaser or in a wholesale stranded cost mitigation sale--
       ``(i) if the seller makes available open access 
     transmission service described in subparagraph (A) or (B) of 
     paragraph (2), or
       ``(ii) if the seller owns or operates no transmission 
     facilities and transmission providers to the seller's 
     wholesale native load purchasers make available open access 
     transmission service described in subparagraph (A) or (B) of 
     paragraph (2).
       ``(4) Definitions and special rules.--For purposes of this 
     subsection:
       ``(A) On-system purchaser.--The term `on-system purchaser' 
     means a person whose electric facilities or equipment are 
     directly connected with transmission or distribution 
     facilities which are owned by such governmental unit, and 
     such person--
       ``(i) purchases electric energy from such governmental unit 
     at retail and either was within such unit's distribution area 
     in the base year or is a person as to whom the governmental 
     unit has a service obligation, or
       ``(ii) is a wholesale native load purchaser from such 
     governmental unit.
       ``(B) Wholesale native load purchaser.--The term `wholesale 
     native load purchaser' means a wholesale purchaser as to whom 
     the governmental unit had--
       ``(i) a service obligation at wholesale in the base year, 
     or
       ``(ii) an obligation in the base year under a requirements 
     contract, or under a firm sales contract that has been in 
     effect for (or has an initial term of) at least 10 years,

     but only to the extent that in either case such purchaser 
     resells the electricity (I) directly at retail to persons 
     within the purchaser's distribution area or (II) indirectly 
     through one or more intermediate wholesale purchasers (each 
     of whom as of June 30, 2000, was a party to a requirements 
     contract or a firm power contract described in clause (ii)) 
     to retail purchasers in the ultimate wholesale purchaser's 
     distribution area.
       ``(C) Wholesale stranded cost mitigation sale.--The term 
     `wholesale stranded cost mitigation sale' means one or more 
     wholesale sales made in accordance with the following 
     requirements:
       ``(i) A governmental unit's allowable sales under this 
     subparagraph during the recovery period may not exceed the 
     sum of its annual load losses for each year of the recovery 
     period.
       ``(ii) The governmental unit's annual load loss for each 
     year of the recovery period is the amount (if any) by which--

       ``(I) sales in the base year to wholesale native load 
     purchasers which do not constitute a private business use, 
     exceed
       ``(II) sales during that year of the recovery period to 
     wholesale native load purchasers which do not constitute a 
     private business use.

       ``(iii) If actual sales under this subparagraph during the 
     recovery period are less than allowable sales under clause 
     (i), the amount not sold (but not more than 10 percent of the 
     aggregate allowable sales under clause (i)) may be carried 
     over and sold as wholesale stranded cost mitigation sales in 
     the calendar year following the recovery period.
       ``(D) Recovery period.--The recovery period is the 7-year 
     period beginning with the start-up year.
       ``(E) Start-up year.--The start-up year is whichever of the 
     following calendar years the governmental unit elects:
       ``(i) The year the governmental unit first offers open 
     transmission access.
       ``(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.
       ``(iii) The calendar year which includes the date of the 
     enactment of this section, if later than the year described 
     in clause (i) or (ii).
       ``(F) Permitted sales transactions under existing 
     contracts.--A sale to a wholesale native load purchaser 
     (other than a person to whom the governmental unit had a 
     service obligation) under a contract which resulted in 
     private business use in the base year shall be treated as a 
     permitted sales transaction only to the extent that sales 
     under the contract exceed the lesser of--
       ``(i) in any year the private business use that resulted 
     from the contract during the base year, or
       ``(ii) the maximum amount of private business use which 
     could occur (absent the enactment of this section) 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 prior to the date of 
     enactment of this section (or bonds issued to refund such 
     bonds).
       ``(G) Time of sale rule.--For purposes of paragraphs 
     (C)(ii) and (F), private business use shall be determined 
     under the law in effect in the year of the sale.
       ``(H) Joint action agencies.--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.
       ``(c) Certain Bonds for Transmission and Distribution 
     Facilities Not Tax Exempt.--
       ``(1) General rule.--For purposes of this title, no bond 
     the interest on which is exempt from taxation under section 
     103 may be issued on or after the date of enactment of this 
     subsection if any of the proceeds of such issue are used to 
     finance--
       ``(A) any transmission facility which is not a local 
     transmission facility, or
       ``(B) a start-up utility distribution facility.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) any qualified bond (as defined in section 141(e)),
       ``(B) any eligible refunding bond (as defined in subsection 
     (d)(6)), or
       ``(C) any bond issued to finance--
       ``(i) any repair of a transmission facility in service on 
     the date of the enactment of this section, so long as the 
     repair does not increase the voltage level over its level in 
     the base year or increase the thermal load limit of the 
     transmission facility by more than 3 percent over such limit 
     in the base year,
       ``(ii) any qualifying upgrade of a transmission facility in 
     service on the date of the enactment of this section, or
       ``(iii) a transmission facility necessary to comply with an 
     obligation under a shared or reciprocal transmission 
     agreement in effect on the date of enactment of this section.
       ``(3) Local transmission facility definitions.--For 
     purposes of this subsection--
       ``(A) Local transmission facility.--The term `local 
     transmission facility' means a transmission facility which is 
     located within the governmental unit's distribution area or 
     which is, or will be, necessary to supply electricity to 
     serve retail native load or wholesale native load of 1 or 
     more governmental units. For purposes of this subparagraph, 
     the distribution area of a public power authority which was 
     created in 1931 by a State statute and which, as of January 
     1, 1999, owned at least one-third of the transmission circuit 
     miles rated at 230 kV or higher in the State, shall be 
     determined under regulations of the Secretary.
       ``(B) Retail native load.--The term `retail native load' 
     with respect to a governmental unit (or an entity other than 
     a governmental unit that operates an electric utility) is the 
     electric load of end-users in the distribution area of the 
     governmental unit or entity.
       ``(C) Wholesale native load.--The term `wholesale native 
     load' is--
       ``(i) the retail native load of such unit's wholesale 
     native load purchasers (or of an ultimate wholesale purchaser 
     described in subsection (b)(4)(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 under the 
     rules in effect absent this subsection, and
       ``(II) were in effect in the base year.

       ``(D) Necessary to serve load.--For purposes of determining 
     whether a transmission or distribution 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

[[Page S12317]]

     Council of Texas shall be taken into account, and
       ``(iii) transmission, siting and construction decisions of 
     regional transmission organizations or independent system 
     operators 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 enactment 
     of this section which is ordered or approved by a regional 
     transmission organization, by an independent system operator, 
     or by a State regulatory or siting agency, after a proceeding 
     that provides for public input.
       ``(4) Start-up utility distribution facility defined.--For 
     purposes of this subsection, the term `start-up utility 
     distribution facility' means any distribution facility to 
     provide electric service to the public that 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 ten 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 operated by 
     another governmental unit to provide electric service to the 
     public on such date.
       ``(d) Definitions; Special Rules.--For purposes of this 
     section--
       ``(1) Base year.--The term `base year' means the calendar 
     year which includes the date of the enactment of this section 
     or, at the election of the governmental unit, either of the 2 
     immediately preceding calendar years.
       ``(2) Distribution area.--The term `distribution area' 
     means the area in which a governmental unit (or an entity 
     other than a governmental unit that operates an electric 
     utility) 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, except that the owner of the facility may 
     elect to treat any output facility that the FERC determines 
     is a transmission facility under standards applied by FERC 
     under the Federal Power Act as a transmission facility for 
     purposes of this section.
       ``(6) Eligible refunding bond.--The term `eligible 
     refunding bond' means any State or local bond issued after an 
     election described in subsection (a) that directly or 
     indirectly refunds any bond described in section 103(a) 
     (other than a qualified bond) issued before such election, if 
     the weighted average maturity of the issue of which the 
     refunding bond is a part does not exceed the remaining 
     weighted average maturity of the bonds issued before the 
     election. In applying such term for purposes of subsection 
     (c)(2)(B), the date of election shall be deemed to be the 
     date of the enactment of this section.
       ``(7) FERC.--The term `FERC' means the Federal Energy 
     Regulatory Commission.
       ``(8) Government-owned facility.--An electric output 
     facility shall be treated as `owned by a governmental unit' 
     if it is an electric output facility that either is--
       ``(A) owned or leased by such governmental unit, or
       ``(B) a transmission facility in which the governmental 
     unit acquired before the base year long-term firm capacity 
     for the purposes of serving customers to which the unit had 
     at that time either--
       ``(i) a service obligation, or
       ``(ii) an obligation under a requirements contract.
       ``(9) Repair.--The term `repair' shall include replacement 
     of components of an electric output facility, but shall not 
     include replacement of the facility either at one time or 
     incrementally.
       ``(10) Service obligation.--The term `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 service, as provided in such law.
       ``(11) Contract modifications.--A contract is treated as a 
     new contract if it is substantially modified.
       ``(e) Savings Clause.--Subsection (b) does not affect the 
     applicability of section 141 to (or the Secretary's authority 
     to prescribe, amend or rescind regulations respecting) (1) 
     any transaction that is not a permitted open access 
     transaction or permitted sales transaction, or (2) any 
     facilities other than electric output facilities.''.
       (b) Repeal of Exception for Certain Nongovernmental 
     Electric Output Facilities.--Section 141(d)(5) of the 
     Internal Revenue Code of 1986 is amended by inserting 
     ``(except in the case of an electric output facility that is 
     a distribution facility),'' after ``this subsection''.
       (c) Conforming Amendment.--The table of sections for 
     subpart A of part IV of subchapter B of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     the item relating to section 141 the following new item:

``Sec. 141A. Electric output facilities.''
       (d) Effective Date; Applicability.--
       (1) Effective date.--The amendments made by this section 
     take effect on the date of enactment of this Act, except that 
     a governmental unit may elect to apply paragraphs (1) and (2) 
     of section 141A(b), as added by subsection (a), with respect 
     to permitted open access activities entered into on or after 
     April 14, 1996.
       (2) Certain existing agreements.--The amendment made by 
     subsection (b) (relating to repeal of the exception for 
     certain nongovernmental output facilities) does not apply to 
     any acquisition of facilities made pursuant to an agreement 
     that was entered into before the date of the enactment of 
     this Act.
       (3) Applicability.--References in 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. ____02. INDEPENDENT TRANSMISSION COMPANIES.

       (a) Sales or Dispositions To Implement Federal Energy 
     Regulatory Commission or State Electric Restructuring 
     Policy.--
       (1) In general.--Section 1033 of the Internal Revenue Code 
     of 1986 (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 and the proceeds 
     received from such transaction are invested in exempt utility 
     property, such transaction shall be treated as an involuntary 
     conversion to which this section applies. The part of the 
     gain, if any, on a sale or exchange to which section 1033 is 
     not applied by reason of section 1245 shall nevertheless not 
     be recognized, if the taxpayer so elects, to the extent that 
     it is applied to reduce the basis for determining gain or 
     loss on sale or exchange of property, of a character subject 
     to the allowance for depreciation under section 167, 
     remaining in the hands of the taxpayer immediately after the 
     sale or exchange, or acquired in the same taxable year. The 
     manner and amount of such reduction shall be determined under 
     regulations prescribed by the Secretary. Any election made by 
     the taxpayer under this section shall be made by a statement 
     to that effect in his return for the taxable year in which 
     the sale or exchange takes place, and such election shall be 
     binding for the taxable year and all subsequent taxable 
     years.
       ``(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 
     of property used in the trade or business of electric 
     transmission, or an ownership interest in a person whose 
     primary trade or business consists of providing electric 
     transmission services, to another person that is 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
       ``(ii) whose transmission facilities to which the election 
     under this subsection applies are placed under the 
     operational control of a Federal Energy Regulatory 
     Commission-approved regional transmission organization within 
     the period specified in such order, but not later than the 
     close of the replacement period, 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, the term `exempt utility property' means--
       ``(A) property used in the trade or business of generating, 
     transmitting, distributing, or selling electricity or 
     producing, transmitting, distributing, or selling natural 
     gas, or
       ``(B) stock acquired in the acquisition of control of a 
     corporation whose primary trade or business consists of 
     generating, transmitting, distributing, or selling 
     electricity or producing, transmitting, distributing, or 
     selling natural gas.
       ``(6) Special rules for consolidated groups.--
       ``(A) Investment by qualifying group members.--

[[Page S12318]]

       ``(i) In general.--This subsection shall apply to a 
     qualifying electric transmission transaction engaged in by a 
     taxpayer if the proceeds are invested in exempt utility 
     property by a qualifying group member.
       ``(ii) Qualifying group member.--For purposes of this 
     subparagraph, the term `qualifying group member' means any 
     member of a consolidated group within the meaning of section 
     1502 and the regulations promulgated thereunder of which the 
     taxpayer is also a member.
       ``(B) Coordination with consolidated return provisions.--A 
     sale or other disposition of electric transmission property 
     or an ownership interest in a qualifying electric 
     transmission transaction, where an election is made under 
     this subsection, shall not result in the recognition of 
     income or gain under the consolidated return provisions of 
     subchapter A of chapter 6. The Secretary shall prescribe such 
     regulations as may be necessary to provide for the treatment 
     of any exempt utility property received in a qualifying 
     electric transmission transaction as successor assets subject 
     to the application of such consolidated return provisions.
       ``(7) Election.--Any election made by a taxpayer under this 
     subsection shall be made by a statement to that effect in the 
     return for the taxable year in which the qualifying electric 
     transmission transaction takes place in such form and manner 
     as the Secretary shall prescribe, and such election shall be 
     binding for that taxable year and all subsequent taxable 
     years.''
       (2) Savings clause.--Nothing in section 1033(k) of the 
     Internal Revenue Code of 1986, as added by subsection (a), 
     shall affect Federal or State regulatory policy respecting 
     the extent to which any acquisition premium paid in 
     connection with the purchase of an asset in a qualifying 
     electric transmission transaction can be recovered in rates.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to transactions occurring after the date of the 
     enactment of this Act.
       (b) Distributions of Stock To Implement Federal Energy 
     Regulatory Commission or State Electric Restructuring 
     Policy.--
       (1) In general.--Section 355(e)(4) of the Internal Revenue 
     Code of 1986 is amended by redesignating subparagraphs (C), 
     (D), and (E) as subparagraphs (D), (E), and (F), 
     respectively, and by inserting after subparagraph (B) the 
     following new subparagraph:
       ``(C) Distributions of stock to implement federal energy 
     regulatory commission or state electric restructuring 
     policy.--
       ``(i) In general.--Paragraph (1) shall not apply to any 
     distribution that is a qualifying electric transmission 
     transaction. For purposes of this subparagraph, a `qualifying 
     electric transmission transaction' means any distribution of 
     stock in a corporation whose primary trade or business 
     consists of providing electric transmission services, where 
     such stock is later acquired (or where the assets of such 
     corporation are later acquired) by another person that is an 
     independent transmission company.
       ``(ii) Independent transmission company.--For purposes of 
     this subsection, the term `independent transmission company' 
     means--

       ``(I) a regional transmission organization approved by the 
     Federal Energy Regulatory Commission,
       ``(II) a person 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. 824b) 
     is not a market participant within the meaning of such 
     Commission's rules applicable to regional transmission 
     organizations, and whose transmission facilities transferred 
     as a part of such qualifying electric transmission 
     transaction are placed under the operational control of a 
     Federal Energy Regulatory Commission-approved regional 
     transmission organization within the period specified in such 
     order, but not later than the close of the replacement period 
     (as defined in section 1033(k)(2)), or
       ``(III) in the case of facilities subject to the exclusive 
     jurisdiction of the Public Utility Commission of Texas, a 
     person that is approved by that Commission as consistent with 
     Texas State law regarding an independent transmission 
     organization.''

       (2) Effective date.--The amendments made by this subsection 
     shall apply to distributions occurring after the date of the 
     enactment of this Act.

     SEC. ____03. CERTAIN AMOUNTS RECEIVED BY ELECTRIC UTILITIES 
                   EXCLUDED FROM GROSS INCOME AS CONTRIBUTIONS TO 
                   CAPITAL.

       (a) In General.--Subsection (c) of section 118 of the 
     Internal Revenue Code of 1986 (relating to contributions to 
     the capital of a corporation) is amended--
       (1) by striking ``Water and Sewage Disposal'' in the 
     heading, and inserting ``Certain'',
       (2) by striking ``water or,'' in the matter preceding 
     subparagraph (A) of paragraph (1) and inserting ``electric 
     energy, water, or'',
       (3) by striking ``water or'' in paragraph (1)(B)and 
     inserting ``electric energy (but not including assets used in 
     the generation of electricity), water, or'',
       (4) by striking ``water or'' in paragraph (2)(A)(ii) and 
     inserting ``electric energy (but not including assets used in 
     the generation of electricity), water, or'',
       (5) by inserting ``such term shall include amounts paid as 
     customer connection fees (including amounts paid to connect 
     the customer's line to an electric line or a main water or 
     sewer line) and'' after ``except that'' in paragraph (3)(A), 
     and
       (6) by striking ``water or'' in paragraph (3)(C) and 
     inserting ``electric energy, water, or''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts received after the date of the 
     enactment of this Act.

     SEC. ____04. TAX TREATMENT OF NUCLEAR DECOMMISSIONING FUNDS.

       (a) Increase in Amount Permitted To Be Paid Into Nuclear 
     Decommissioning Reserve Fund.--Subsection (b) of section 468A 
     of the Internal Revenue Code of 1986 (relating to special 
     rules for nuclear decommissioning costs) 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 during the funding period shall 
     not exceed the level funding amount determined pursuant to 
     subsection (d), except--
       ``(A) where the taxpayer is permitted by Federal or State 
     law or regulation (including authorization by a public 
     service commission) to charge customers a greater amount for 
     nuclear decommissioning costs, in which case the taxpayer may 
     pay into the Fund such greater amount, or
       ``(B) in connection with the transfer of a nuclear 
     powerplant, where the transferor or transferee (or both) is 
     required pursuant to the terms of the transfer to contribute 
     a greater amount for nuclear decommissioning costs, in which 
     case the transferor or transferee (or both) may pay into the 
     Fund such greater amount.
       ``(2) Contributions after funding period.--Notwithstanding 
     any other provision of this section, a taxpayer may make 
     deductible payments to the Fund in any taxable year between 
     the end of the funding period and the termination of the 
     license issued by the Nuclear Regulatory Commission for the 
     nuclear powerplant to which the Fund relates provided such 
     payments do not 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 foregoing limitation shall be applied 
     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) Deduction for Nuclear Decommissioning Costs When 
     Paid.--Paragraph (2) of section 468A(c) of the Internal 
     Revenue Code of 1986 (relating to income and deductions of 
     the taxpayer) 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.''
       (c) Level Funding Amounts.--Subsection (d) of section 468A 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(d) Level Funding Amounts.--
       ``(1) Annual amounts.--For purposes of this section, the 
     level funding amount for any taxable year shall equal the 
     annual amount required to be contributed to the Fund in each 
     year remaining in the funding period in order for the Fund to 
     accumulate the nuclear decommissioning costs allocable to the 
     taxpayer's current or former interest in the nuclear 
     powerplant to which the Fund relates. The annual amount 
     described in the foregoing sentence shall be calculated 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.
       ``(2) Funding period.--The funding period for a Fund shall 
     end on the last day of the last taxable year of the expected 
     operating life of the nuclear powerplant.
       ``(3) Nuclear decommissioning costs.--For purposes of this 
     section--
       ``(A) In general.--The term `nuclear decommissioning costs' 
     means all costs to be incurred in connection with entombing, 
     decontaminating, dismantling, removing, and disposing of a 
     nuclear powerplant, and shall include all associated 
     preparation, security, fuel storage, and radiation monitoring 
     costs. Such term shall include all such costs which, outside 
     of the decommissioning context, might otherwise be capital 
     expenditures.
       ``(B) Identification of costs.--The taxpayer may identify 
     nuclear decommissioning costs by reference either to a site-
     specific engineering study or to the financial assurance 
     amount calculated pursuant to section 50.75 of title 10 of 
     the Code of Federal Regulations.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid after June 30, 2000, in taxable 
     years ending after such date.
                                  ____

  SA 2215. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill H.R. 10, to provide for pension reform, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC.  . EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this Act 
     and the amendments made by this Act shall take effect on 
     October 1, 2004.

[[Page S12319]]

     
                                  ____
  SA 2216. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill H.R. 10, to provide for pension reform, and for 
other purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC.  . EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this Act 
     and the amendments made by this Act shall take effect on 
     October 1, 2004.
                                  ____

  SA 2217. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill H.R. 10, to provide for pension reform, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.   . EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this Act 
     and the amendments made by this Act shall take effect on 
     October 1, 2003.
                                  ____

  SA 2218. Mr. DOMENICI submitted an amendment intended to be proposed 
by him to the bill H.R. 10, to provide for pension reform, and for 
other purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC.   . EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this Act 
     and the amendments made by this Act shall take effect on 
     October 1, 2003.
                                  ____

  SA 2219. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed by her to the bill H.R. 10, to provide for pension reform, and 
for other purposes; which was ordered to lie on the table; as follows:

       Beginning on page ____ of the amendment, strike line ____ 
     and all that follows through line ____ on page ____, and 
     insert the following:

                 TITLE ____--HUMAN CLONING PROHIBITION

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Human Cloning Prohibition 
     Act of 2001''.

     SEC. ____02. FINDINGS.

       Congress finds that--
       (1) the National Bioethics Advisory Commission (referred to 
     in this title as the ``NBAC'') has reviewed the scientific 
     and ethical implications of human cloning and has determined 
     that the cloning of human beings is morally unacceptable;
       (2) the NBAC recommended that Federal legislation be 
     enacted to prohibit anyone from conducting or attempting 
     human cloning, whether using Federal or non-Federal funds;
       (3) the NBAC also recommended that the United States 
     cooperate with other countries to enforce mutually supported 
     prohibitions on human cloning;
       (4) the NBAC found that somatic cell nuclear transfer (also 
     known as nuclear transplantation) may have many important 
     applications in medical research;
       (5) the Institute of Medicine has found that nuclear 
     transplantation may enable stem cells to be developed in a 
     manner that will permit such cells to be transplanted into a 
     patient without being rejected;
       (6) the NBAC concluded that any regulatory or legislative 
     actions undertaken to prohibit human cloning should be 
     carefully written so as not to interfere with other important 
     areas of research, such as stem cell research; and
       (7)(A) biomedical research and clinical facilities engage 
     in and affect interstate commerce;
       (B) the services provided by clinical facilities move in 
     interstate commerce;
       (C) patients travel regularly across State lines in order 
     to access clinical facilities; and
       (D) biomedical research and clinical facilities engage 
     scientists, doctors, and other staff in an interstate market, 
     and contract for research and purchase medical and other 
     supplies in an interstate market.

     SEC. ____03. PURPOSES.

       It is the purpose of this title to prohibit any attempt to 
     clone a human being while protecting important areas of 
     medical research, including stem cell research.

     SEC. ____04. PROHIBITION ON HUMAN CLONING.

       (a) In General.--Title 18, United States Code, is amended 
     by inserting after chapter 15, the following:

               ``CHAPTER 16--PROHIBITION ON HUMAN CLONING

``Sec.
``301. Prohibition on human cloning.

     ``Sec. 301. Prohibition on human cloning

       ``(a) Definitions.--In this section:
       ``(1) Human cloning.--The term `human cloning' means 
     asexual reproduction by implanting or attempting to implant 
     the product of nuclear transplantation into a uterus.
       ``(2) Human somatic cell.--The term `human somatic cell' 
     means a mature, diploid cell that is obtained or derived from 
     a living or deceased human being at any stage of development.
       ``(3) Nuclear transplantation.--The term `nuclear 
     transplantation' means transferring the nucleus of a human 
     somatic cell into an oocyte from which the nucleus or all 
     chromosomes have been or will be removed or rendered inert.
       ``(4) Nucleus.--The term `nucleus' means the cell structure 
     that houses the chromosomes, and thus the genes.
       ``(5) Oocyte.--The term `oocyte' means the female germ 
     cell, the egg.
       ``(b) Prohibitions on Human Cloning.--It shall be unlawful 
     for any person or other legal entity, public or private--
       ``(1) to conduct or attempt to conduct human cloning;
       ``(2) to ship the product of nuclear transplantation in 
     interstate or foreign commerce for the purpose of human 
     cloning in the United States or elsewhere; or
       ``(3) to use funds made available under any provision of 
     Federal law for an activity prohibited under paragraph (1) or 
     (2).
       ``(c) Protection of Medical Research.--Nothing in this 
     section shall be construed to restrict areas of biomedical 
     and agricultural research or practices not expressly 
     prohibited in this section, including research or practices 
     that involve the use of--
       ``(1) nuclear transplantation to produce human stem cells;
       ``(2) techniques to create exact duplicates of molecules, 
     DNA, cells, and tissues;
       ``(3) mitochondrial, cytoplasmic or gene therapy; or
       ``(4) nuclear transplantation techniques to create nonhuman 
     animals.
       ``(d) Penalties.--
       ``(1) In general.--Whoever intentionally violates any 
     provision of subsection (b) shall be fined under this title 
     and imprisoned not more than 10 years.
       ``(2) Civil penalties.--Whoever intentionally violates 
     paragraph (1), (2), or (3) of subsection (b) shall be subject 
     to a civil penalty of $1,000,000 or three times the gross 
     pecuniary gain resulting from the violation, whichever is 
     greater.
       ``(3) Civil actions.--If a person is violating or about to 
     violate the provisions of subsection (b), the Attorney 
     General may commence a civil action in an appropriate Federal 
     district court to enjoin such violation.
       ``(4) Forfeiture.--Any property, real or personal, derived 
     from or used to commit a violation or attempted violation of 
     the provisions of subsection (b), or any property traceable 
     to such property, shall be subject to forfeiture to the 
     United States in accordance with the procedures set forth in 
     chapter 46 of title 18, United States Code.
       ``(5) Advisory opinions.--The Attorney General shall, upon 
     request, render binding advisory opinions regarding the 
     scope, applicability, interpretation, and enforcement of this 
     section with regard to specific research projects or 
     practices.
       ``(e) Cooperation With Foreign Countries.--It is the sense 
     of Congress that the President should cooperate with foreign 
     countries to enforce mutually supported restrictions on the 
     activities prohibited under subsection (b).
       ``(f) Right of Action.--Nothing in this section shall be 
     construed to give any individual or person a private right of 
     action.
       ``(g) Preemption of State Law.--The provisions of this 
     section shall preempt any State or local law that prohibits 
     or restricts research regarding, or practices constituting, 
     nuclear transplantation, mitochondrial or cytoplasmic 
     therapy, or the cloning of molecules, DNA, cells, tissues, 
     organs, plants, animals, or humans.''.
       (b) Ethical Requirements for Nuclear Transplantation 
     Research.--Part H of title IV of the Public Health Service 
     Act (42 U.S.C. 289 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 498C. ETHICAL REQUIREMENTS FOR NUCLEAR TRANSPLANTATION 
                   RESEARCH.

       ``(a) Definitions.--In this section:
       ``(1) Human somatic cell.--The term `human somatic cell' 
     means a mature, diploid cell that is obtained or derived from 
     a living or deceased human being at any stage of development.
       ``(2) Nuclear transplantation.--The term `nuclear 
     transplantation' means transferring the nucleus of a human 
     somatic cell into an oocyte from which the nucleus or all 
     chromosomes have been or will be removed or rendered inert.
       ``(3) Nucleus.--The term `nucleus' means the cell structure 
     that houses the chromosomes, and thus the genes.
       ``(4) Oocyte.--The term `oocyte' means the female germ 
     cell, the egg.
       ``(b) Applicability of Federal Ethical Standards to Nuclear 
     Transplantation Research.--Research involving nuclear 
     transplantation shall be conducted in accordance with the 
     applicable provisions of part 46 of title 45, Code of Federal 
     Regulations (as in effect on the date of enactment of the 
     Human Cloning Prohibition Act of 2001).
       ``(c) Civil Penalties.--Whoever intentionally violates 
     subsection (b) shall be subject to a civil penalty of not 
     more than $250,000.
       ``(d) Enforcement.--The Secretary of Health and Human 
     Services shall have the exclusive authority to enforce this 
     section.''.
                                  ____

  SA 2220. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:


[[Page S12320]]


       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     the $15,000,000,000 transfer authorized under section 107(a) 
     shall not take effect unless the Secretary of the Treasury 
     finds that no portion of the transferred funds are 
     attributable to the surplus in Social Security.''.
                                  ____

  SA 2221. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     the $15,000,000,000 transfer authorized under section 107(a) 
     shall not take effect unless the Secretary of the Treasury 
     finds that no portion of the transferred funds are 
     attributable to the surplus in Social Security or in 
     Medicare.''.
                                  ____

  SA 2222. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     the reduction in the retirement age authorized by section 102 
     shall not take effect until the Secretary of the Treasury 
     finds that there has been a comparable reduction in the 
     Social Security retirement age.''.
                                  ____

  SA 2223. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of Act, the 
     Board of Trustees created under section 105 shall invest the 
     funds of the Trust only in a manner that maximizes return on 
     investment, consistent with prudent risk management. Any 
     railroad employee, retiree, survivor, or company may bring a 
     civil action to enforce this section.''.
                                  ____

  SA 2224. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of Act, in 
     the table in Section 3241(b) of the Internal Revenue Code of 
     1986 (as added by this Act) strike 22.1 and insert `such 
     percentage as the Secretary determines necessary to restore 
     the average account benefit ratio to 2.5'.''.
                                  ____

  SA 2225. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     the Secretary of the Treasury shall not make the transfers 
     authorized under Sec. 107(c)(1).''.
                                  ____

  SA 2226. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.  . Notwithstanding any other provision of this Act, 
     any reduction in tax or increase in benefits shall take 
     effect only to the degree that the Secretary of the Treasury 
     finds that the actual earnings of the Railroad Retirement 
     Investment Trust Fund are sufficient to fund them.''.
                                  ____

  SA 2227. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At end end of the amendment, insert the following:
       ``Sec.  . Notwithstanding any other provision of this Act, 
     section 105(c) shall not apply.''.
                                  ____

  SA 2228. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the of the amendment, insert the following:
       ``Sec.  . Notwithstanding any other provision of this Act, 
     any reduction in tax under section 204 shall be null and void 
     in any year that the combined balances of the Railroad 
     Retirement trust funds have been depleted by more than 10 
     percent as compared to the combined balances of the Railroad 
     Retirement trust funds projected by the Railroad Retirement 
     Board under employment assumption II as of the day before the 
     date of enactment of this Act, and the Secretary of the 
     Treasury shall apply the rate of tax necessary to restore the 
     depleted funds.''.
                                  ____

  SA 2229. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     any reduction in tax under section 204 shall be null and void 
     in any year that the combined balances of the Railroad 
     Retirement trust funds have been depleted by more than 20 
     percent as compared to the combined balances of the Railroad 
     Retirement trust funds projected by the Railroad Retirement 
     Board under employment assumption II as of the day before the 
     date of enactment of this Act, and the Secretary of the 
     Treasury shall apply the rate of tax necessary to restore the 
     depleted funds.''.
                                  ____

  SA 2230. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     any reduction in tax under section 204 shall be null and void 
     in any year that the combined balances of the Railroad 
     Retirement trust funds have been depleted by more than 40 
     percent as compared to the combined balances of the Railroad 
     Retirement trust funds projected by the Railroad Retirement 
     Board under employment assumption II as of the day before the 
     date of enactment of this Act, and the Secretary of the 
     Treasury shall apply the rate of tax necessary to restore the 
     depleted funds.''.
                                  ____

  SA 2231. Mr. GRAMM submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       ``Sec.   . Notwithstanding any other provision of this Act, 
     any reduction in tax under section 204 shall be null and void 
     in any year that the combined balances of the Railroad 
     Retirement trust funds have been depleted by more than 75 
     percent as compared to the combined balances of the Railroad 
     Retirement trust funds projected by the Railroad Retirement 
     Board under employment assumption II as of the day before the 
     date of enactment of this Act, and the Secretary of the 
     Treasury shall apply the rate of tax necessary to restore the 
     depleted funds.''.
                                  ____

  SA 2232. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed to amendment SA 2171 submitted by Mr. Lott and intended 
to be proposed to the amendment SA 2170 proposed by Mr. Daschle to the 
bill (H.R. 10), to provide for pension reform, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

                TITLE ____--METHYL TERTIARY BUTYL ETHER

     SEC. ____1. SHORT TITLE.

       This title may be cited as the ``Federal Reformulated Fuels 
     Act of 2001''.

     SEC. ____2. LEAKING UNDERGROUND STORAGE TANKS.

       (a) Use of LUST Funds for Remediation of MTBE 
     Contamination.--Section 9003(h) of the Solid Waste Disposal 
     Act (42 U.S.C. 6991b(h)) is amended--
       (1) in paragraph (7)(A)--
       (A) by striking ``paragraphs (1) and (2) of this 
     subsection'' and inserting ``paragraphs (1), (2), and (12)''; 
     and
       (B) by inserting ``and section 9010'' before ``if''; and
       (2) by adding at the end the following:
       ``(12) Remediation of mtbe contamination.--
       ``(A) In general.--The Administrator and the States may use 
     funds made available under section 9011(1) to carry out 
     corrective actions with respect to a release of methyl 
     tertiary butyl ether that presents a threat to human health, 
     welfare, or the environment.
       ``(B) Applicable authority.--Subparagraph (A) shall be 
     carried out--
       ``(i) in accordance with paragraph (2); and
       ``(ii) in the case of a State, in accordance with a 
     cooperative agreement entered into by the Administrator and 
     the State under paragraph (7).''.
       (b) Release Prevention and Compliance.--Subtitle I of the 
     Solid Waste Disposal

[[Page S12321]]

     Act (42 U.S.C. 6991 et seq.) is amended by striking section 
     9010 and inserting the following:

     ``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

       ``Funds made available under section 9011(2) from the 
     Leaking Underground Storage Tank Trust Fund may be used for 
     conducting inspections, or for issuing orders or bringing 
     actions under this subtitle--
       ``(1) by a State (pursuant to section 9003(h)(7)) acting 
     under--
       ``(A) a program approved under section 9004; or
       ``(B) State requirements regulating underground storage 
     tanks that are similar or identical to this subtitle; and
       ``(2) by the Administrator, acting under this subtitle or a 
     State program approved under section 9004.

     ``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

       ``In addition to amounts made available under section 
     2007(f), there are authorized to be appropriated from the 
     Leaking Underground Storage Tank Trust Fund--
       ``(1) to carry out section 9003(h)(12), $200,000,000 for 
     fiscal year 2002, to remain available until expended; and
       ``(2) to carry out section 9010--
       ``(A) $50,000,000 for fiscal year 2002; and
       ``(B) $30,000,000 for each of fiscal years 2003 through 
     2007.''.
       (c) Technical Amendments.--
       (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
     prec. 6901) is amended by striking the item relating to 
     section 9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''

     .  (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
     U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
     inserting ``substances''.
       (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
     U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) 
     and (d) of this section'' and inserting ``subsections (c) and 
     (d)''.
       (4) Section 9004(a) of the Solid Waste Disposal Act (42 
     U.S.C. 6991c(a)) is amended in the second sentence by 
     striking ``referred to'' and all that follows and inserting 
     ``referred to in subparagraph (A) or (B), or both, of section 
     9001(2).''.
       (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
     6991d) is amended--
       (A) in subsection (a), by striking ``study taking'' and 
     inserting ``study, taking'';
       (B) in subsection (b)(1), by striking ``relevent'' and 
     inserting ``relevant''; and
       (C) in subsection (b)(4), by striking ``Evironmental'' and 
     inserting ``Environmental''.

     SEC. ____3. AUTHORITY FOR WATER QUALITY PROTECTION FROM 
                   FUELS.

       (a) In General.--Section 211(c) of the Clean Air Act (42 
     U.S.C. 7545(c)) is amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``fuel or fuel additive or'' after 
     ``Administrator any''; and
       (B) by striking ``air pollution which'' and inserting ``air 
     pollution, or water pollution, that'';
       (2) in paragraph (4)(B), by inserting ``or water quality 
     protection,'' after ``emission control,''; and
       (3) by adding at the end the following:
       ``(5) Ban on the use of mtbe.--Not later than 4 years after 
     the date of enactment of this paragraph, the Administrator 
     shall ban use of methyl tertiary butyl ether in motor vehicle 
     fuel.''.
       (b) No Effect on Law Regarding State Authority.--The 
     amendments made by subsection (a) have no effect on the law 
     in effect on the day before the date of enactment of this Act 
     regarding the authority of States to limit the use of 
     methyl tertiary butyl ether in gasoline.

     SEC. ____4. WAIVER OF OXYGEN CONTENT REQUIREMENT FOR 
                   REFORMULATED GASOLINE.

       Section 211(k)(1) of the Clean Air Act (42 U.S.C. 
     7545(k)(1)) is amended--
       (1) by striking ``Within 1 year after the enactment of the 
     Clean Air Act Amendments of 1990,'' and inserting the 
     following:
       ``(A) In general.--Not later than November 15, 1991,''; and
       (2) by adding at the end the following:
       ``(B) Waiver of oxygen content requirement.--
       ``(i) Authority of the governor.--

       ``(I) In general.--Notwithstanding any other provision of 
     this subsection, a Governor of a State, upon notification by 
     the Governor to the Administrator during the 90-day period 
     beginning on the date of enactment of this subparagraph, or 
     during the 90-day period beginning on the date on which an 
     area in the State becomes a covered area by operation of the 
     second sentence of paragraph (10)(D), may waive the 
     application of paragraphs (2)(B) and (3)(A)(v) to gasoline 
     sold or dispensed in the State.
       ``(II) Opt-in areas.--A Governor of a State that submits an 
     application under paragraph (6) may, as part of that 
     application, waive the application of paragraphs (2)(B) and 
     (3)(A)(v) to gasoline sold or dispensed in the State.

       ``(ii) Treatment as reformulated gasoline.--In the case of 
     a State for which the Governor invokes the waiver described 
     in clause (i), gasoline that complies with all provisions of 
     this subsection other than paragraphs (2)(B) and (3)(A)(v) 
     shall be considered to be reformulated gasoline for the 
     purposes of this subsection.
       ``(iii) Effective date of waiver.--A waiver under clause 
     (i) shall take effect on the earlier of--

       ``(I) the date on which the performance standards under 
     subparagraph (C) take effect; or
       ``(II) the date that is 270 days after the date of 
     enactment of this subparagraph.

       ``(C) Maintenance of toxic air pollutant emission 
     reductions.--
       ``(i) In general.--As soon as practicable after the date of 
     enactment of this subparagraph, the Administrator shall--

       ``(I) promulgate regulations consistent with subparagraph 
     (A) and paragraph (3)(B)(ii) to ensure that reductions of 
     toxic air pollutant emissions achieved under the reformulated 
     gasoline program under this section before the date of 
     enactment of this subparagraph are maintained in States for 
     which the Governor waives the oxygenate requirement under 
     subparagraph (B)(i); or
       ``(II) determine that the requirement described in clause 
     (iv)--

       ``(aa) is consistent with the bases for performance 
     standards described in clause (ii); and
       ``(bb) shall be deemed to be the performance standards 
     under clause (ii) and shall be applied in accordance with 
     clause (iii).
       ``(ii) PADD performance standards.--The Administrator, in 
     regulations promulgated under clause (i)(I), shall establish 
     annual average performance standards for each Petroleum 
     Administration for Defense District (referred to in this 
     subparagraph as a `PADD') based on--

       ``(I) the average of the annual aggregate reductions in 
     emissions of toxic air pollutants achieved under the 
     reformulated gasoline program in each PADD during calendar 
     years 1999 and 2000, determined on the basis of the 1999 and 
     2000 Reformulated Gasoline Survey Data, as collected by the 
     Administrator; and
       ``(II) such other information as the Administrator 
     determines to be appropriate.

       ``(iii) Applicability.--

       ``(I) In general.--The performance standards under this 
     subparagraph shall be applied on an annual average importer 
     or refinery-by-refinery basis to reformulated gasoline that 
     is sold or introduced into commerce in a State for which the 
     Governor waives the oxygenate requirement under subparagraph 
     (B)(i).
       ``(II) More stringent requirements.--The performance 
     standards under this subparagraph shall not apply to the 
     extent that any requirement under section 202(l) is more 
     stringent than the performance standards.
       ``(III) State standards.--The performance standards under 
     this subparagraph shall not apply in any State that has 
     received a waiver under section 209(b).

       ``(IV) Credit program.--The Administrator shall provide for 
     the granting of credits for exceeding the performance 
     standards under this subparagraph in the same manner as 
     provided in paragraph (7).

       ``(iv) Statutory performance standards.--

       ``(I) In general.--Subject to subclause (IV), if the 
     regulations under clause (i)(I) have not been promulgated by 
     the date that is 270 days after the date of enactment of this 
     subparagraph, the requirement described in subclause (III) 
     shall be deemed to be the performance standards under clause 
     (ii) and shall be applied in accordance with clause (iii).
       ``(II) Publication in federal register.--Not later than 30 
     days after the date of enactment of this subparagraph, the 
     Administrator shall publish in the Federal Register, for each 
     PADD, the percentage equal to the average of the annual 
     aggregate reductions in the PADD described in clause (ii)(I).
       ``(III) Toxic air pollutant emissions.--The annual 
     aggregate emissions of toxic air pollutants from baseline 
     vehicles when using reformulated gasoline in each PADD shall 
     be not greater than--

       ``(aa) the aggregate emissions of toxic air pollutants from 
     baseline vehicles when using baseline gasoline in the PADD; 
     reduced by
       ``(bb) the quantity obtained by multiplying the aggregate 
     emissions described in item (aa) for the PADD by the 
     percentage published under subclause (II) for the PADD.

       ``(IV) Subsequent regulations.--Through promulgation of 
     regulations under clause (i)(I), the Administrator may modify 
     the performance standards established under subclause (I) to 
     require each PADD to achieve a greater percentage reduction 
     than the percentage published under subclause (II) for the 
     PADD.''.

     SEC. ____5. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS 
                   AND FUEL ADDITIVES.

       Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
     amended--
       (1) in paragraph (2)--
       (A) by striking ``may also'' and inserting ``shall, on a 
     regular basis,''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) to conduct tests to determine potential public health 
     and environmental effects of the fuel or additive (including 
     carcinogenic, teratogenic, or mutagenic effects); and''; and
       (2) by adding at the end the following:
       ``(4) Ethyl tertiary butyl ether.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of this paragraph, the Administrator shall--
       ``(i) conduct a study on the effects on public health, air 
     quality, and water resources of increased use of, and the 
     feasibility of using

[[Page S12322]]

     as substitutes for methyl tertiary butyl ether in gasoline--

       ``(I) ethyl tertiary butyl ether; and
       ``(II) other ethers, as determined by the Administrator; 
     and

       ``(ii) submit to the Committee on Energy and Commerce of 
     the House of Representatives and the Committee on Environment 
     and Public Works of the Senate a report describing the 
     results of the study.
       ``(B) Contracts for study.--In carrying out this paragraph, 
     the Administrator may enter into 1 or more contracts with 
     nongovernmental entities.''.

     SEC. ____6. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended--
       (1) by redesignating subsection (o) as subsection (p); and
       (2) by inserting after subsection (n) the following:
       ``(o) Analyses of Motor Vehicle Fuel Changes and Emissions 
     Model.--
       ``(1) Anti-backsliding analysis.--
       ``(A) Draft analysis.--Not later than 4 years after the 
     date of enactment of this subsection, the Administrator shall 
     publish for public comment a draft analysis of the changes in 
     emissions of air pollutants and air quality due to the use of 
     motor vehicle fuel and fuel additives resulting from 
     implementation of the amendments made by the Federal 
     Reformulated Fuels Act of 2001.
       ``(B) Final analysis.--After providing a reasonable 
     opportunity for comment but not later than 5 years after the 
     date of enactment of this subsection, the Administrator shall 
     publish the analysis in final form.
       ``(2) Emissions model.--For the purposes of this 
     subsection, as soon as the necessary data are available, the 
     Administrator shall develop and finalize an emissions model 
     that reasonably reflects the effects of fuel characteristics 
     or components on emissions from vehicles in the motor vehicle 
     fleet during calendar year 2005.''.

     SEC. ____7. ELIMINATION OF ETHANOL WAIVER.

       Section 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is 
     amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraph (5) as paragraph (4).

     SEC. ____8. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED 
                   GASOLINE PROGRAM.

       Section 211(k)(6) of the Clean Air Act (42 U.S.C. 
     7545(k)(6)) is amended--
       (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
     inserting the following:
       ``(6) Opt-in areas.--
       ``(A) Classified areas.--
       ``(i) In general.--Upon'';
       (2) in subparagraph (B), by striking ``(B) If'' and 
     inserting the following:
       ``(ii) Effect of insufficient domestic capacity to produce 
     reformulated gasoline.--If'';
       (3) in subparagraph (A)(ii) (as so redesignated)--
       (A) in the first sentence, by striking ``subparagraph (A)'' 
     and inserting ``clause (i)''; and
       (B) in the second sentence, by striking ``this paragraph'' 
     and inserting ``this subparagraph''; and
       (4) by adding at the end the following:
       ``(B) Nonclassified areas.--
       ``(i) In general.--In accordance with section 110, a State 
     may submit to the Administrator, and the Administrator may 
     approve, a State implementation plan revision that provides 
     for application of the prohibition specified in paragraph (5) 
     in any portion of the State that is not a covered area or an 
     area referred to in subparagraph (A)(i).
       ``(ii) Period of effectiveness.--Under clause (i), the 
     State implementation plan shall establish a period of 
     effectiveness for applying the prohibition specified in 
     paragraph (5) to a portion of a State that--

       ``(I) commences not later than 1 year after the date of 
     approval by the Administrator of the State implementation 
     plan; and
       ``(II) ends not earlier than 4 years after the date of 
     commencement under subclause (I).''.

     SEC. ____9. MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE.

       Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) (as 
     amended by section ____3(a)(3)) is amended by adding at the 
     end the following:
       ``(6) MTBE merchant producer conversion assistance.--
       ``(A) In general.--The Administrator may make grants to 
     merchant producers of methyl tertiary butyl ether in the 
     United States to assist the producers in the conversion of 
     eligible production facilities described in subparagraph (B) 
     to the production of other fuel additives that--
       ``(i) will be consumed in nonattainment areas;
       ``(ii) will assist the nonattainment areas in achieving 
     attainment with a national primary ambient air quality 
     standard;
       ``(iii) will not degrade air quality or surface or ground 
     water quality or resources; and
       ``(iv) have been registered and tested in accordance with 
     the requirements of this section.
       ``(B) Eligible production facilities.--A production 
     facility shall be eligible to receive a grant under this 
     paragraph if the production facility--
       ``(i) is located in the United States; and
       ``(ii) produced methyl tertiary butyl ether for consumption 
     in nonattainment areas during the period--

       ``(I) beginning on the date of enactment of this paragraph; 
     and
       ``(II) ending on the effective date of the ban on the use 
     of methyl tertiary butyl ether under paragraph (5).

       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $250,000,000 
     for each of fiscal years 2002 through 2004.''.
                                  ____

  SA 2233. Mr. VOINOVICH submitted an amendment intended to be proposed 
to amendment SA 2170 submitted by Mr. Daschle and intended to be 
proposed to the bill (H.R. 10) to provide for pension reform, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 51, insert the following after Section 301 and 
     redesignate accordingly:

     SEC.  . PRICE-ANDERSON REAUTHORIZATION.

       (a) Indemnification of Licensees.--Section 170c. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is amended--
       (1) in the subsection heading, by striking ``LICENSES'' and 
     inserting ``LICENSEES''; and
       (2) in the first sentence, by striking ``August 1, 2001'' 
     and inserting ``August 1, 2012''.
       (b) Reports to Congress.--Section 170p. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(p)) is amended by striking 
     ``August 1, 1998'' and inserting ``August 1, 2008''.
       (c) Applicability.--The amendments made by this section 
     apply with respect to nuclear incidents occurring on or after 
     the date of enactment of this Act.

     SEC.  . ELIMINATION OF FOREIGN OWNERSHIP RESTRICTIONS.

       (a) Commercial Licenses.--Section 103d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2133(d)) is amended by striking 
     the second sentence.
       (b) Medical Therapy and Research and Development.--Section 
     104d. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(d)) is 
     amended by striking the second sentence.

     SEC.  . SCOPE OF ENVIRONMENT REVIEW.

       (a) In General.--Chapter 10 of title I of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2131 et seq.) is amended--
       (1) by redesignating sections 110 and 111 as sections 111 
     and 112, respectively; and
       (2) by inserting after section 109 the following:

     SEC. 110. SCOPE OF ENVIRONMENTAL REVIEW.

       ``In conducting any environmental review (including any 
     activity conducted under section 102 of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332)) in 
     connection with an application for a license or a renewed 
     license under this chapter, the Commission shall not give any 
     consideration to the need for, or any alternative to, the 
     facility to be licensed.''.
       (b) Conforming Amendments.--
       (1) The Atomic Energy Act of 1954 is amended--
       (A) in the table of contents (42 U.S.C. prec. 2011), by 
     striking the items relating to section 110 and inserting the 
     following:

``Sec. 110. Scope of environmental review.
``Sec. 111. Exclusions.

     ``SEC. 112. LICENSING BY NUCLEAR REGULATORY COMMISSION OF 
                   DISTRIBUTION OF CERTAIN MATERIALS BY DEPARTMENT 
                   OF ENERGY.'';

       (B) in the last sentence of section 57b. (42 U.S.C. 
     2077(b)), by striking ``section 111 b.'' and inserting 
     ``section 112b.''; and
       (C) in section 131a.(2)(C), by striking ``section 111 b.'' 
     and inserting ``section 112b.''.
       (2) Section 202 of the Energy Reorganization Act of 1974 
     (42 U.S.C. 5842) is amended--
       (A) by striking ``section 110 a.'' and inserting ``section 
     111a.''; and
       (B) by striking ``section 110 b.'' and inserting ``section 
     111b.''.

     SEC.  . ELIMINATION OF DUPLICATIVE ANTITRUST REVIEW.

       Section 105 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2135) is amended by striking subsection c. and inserting the 
     following:
       ``(c.) Conditions.--
       ``(1) In general.--A condition for a grant of a license 
     imposed by the Commission under this section shall remain in 
     effect until the condition is modified or removed by the 
     Commission.
       ``(2) Modification.--If a person that is licensed to 
     construct or operate a utilization or production facility 
     applies for reconsideration under this section of a 
     condition imposed in the person's license, the Commission 
     shall conduct a proceeding, on an expedited basis, to 
     determine whether the license condition--
       ``(A) is necessary to ensure compliance with subsection a.; 
     or
       ``(B) should be modified or removed.''.
       On page 52, insert the following after Section 304 and 
     redesignate accordingly:

     SEC.   . HEARING PROCEDURES.

       Section 189a.(1) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2239(a)(1)) is amended by adding at the end the 
     following:
       ``(C) Hearings.--A hearing under this section shall be 
     conducted using informal adjudicatory procedures unless the 
     Commission determines that formal adjudicatory procedures are 
     necessary--
       ``(i) to develop a sufficient record; or
       ``(ii) to achieve fairness.''.

     SEC.   . AUTHORITY OVER FORMER LICENSEES FOR DECOMMISSIONING 
                   FUNDING.

       Section 161i. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2201(i)) is amended--
       (1) by striking ``and (3)'' and inserting ``(3)''; and
       (2) by inserting before the semicolon at the end the 
     following: '', and (4) to ensure that sufficient funds will 
     be available for the decommissioning of any production or 
     utilization facility licensed under section 103 or

[[Page S12323]]

     104b., including standards and restrictions governing the 
     control, maintenance, use, and disbursement by any former 
     licensee under this Act that has control over any fund for 
     the decommissioning of the facility''.

     SEC.   . ELIMINATION OF PENSION OFFSET.

       Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2201) is amended by adding at the end the following:
       ``(y)'' exempt from the application of sections 8344 and 
     8468 of title 5, United States Code, an annuitant who was 
     formerly an employee of the Commission who is hired by the 
     Commission as a consultant, if the Commission finds that the 
     annuitant has a skill that is critical to the performance of 
     the duties of the Commission.''.
       On page 53, insert the following after Section 308 and 
     redesignate accordingly

     SEC.   . CONTRACTS WITH THE NATIONAL LABORATORIES.

       Section 170A of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210a) is amended by striking subsection c. and inserting the 
     following:
       ``(c) Contracts, Agreements, and Other Arrangements With 
     the National Laboratories.--Notwithstanding subsection b. and 
     notwithstanding the potential for a conflict of interest that 
     cannot be avoided, the Commission may enter into a contract, 
     agreement, or other arrangement with a national laboratory if 
     the Commission takes reasonable steps to mitigate the effect 
     of the conflict of interest.''.
       On page 108, insert the following after Section 2302 and 
     redesignate accordingly:

     SEC.   . NRC TRAINING PROGRAM.

       (a) In General.--In order to maintain the human resources 
     investment and infrastructure of the United States in the 
     nuclear sciences, health physics, and engineering fields, in 
     accordance with the statutory authorities of the Commission 
     relating to the civilian nuclear energy program, the Nuclear 
     Regulatory Commission shall carry out a training and 
     fellowship program to address shortages of individuals with 
     critical safety skills.
       (b) Authorization of Appropriations--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section $1,000,000 for each of fiscal years 
     2002 through 2005.
       (2) Availability.--Funds made available under paragraph (1) 
     shall remain available until expended.
                                  ____

  SA 2234. Mr. CRAIG submitted an amendment intended to be proposed to 
amendment SA 2171 submitted by Mr. Lott and intended to be proposed to 
the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) to 
provide for pension reform, and for other purposes; which was ordered 
to lie on the table; as follows:

       Strike sections 401 and 402 and insert the following:

     SEC. 401. ALTERNATIVE CONDITIONS.

       (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 
     under subsection (e), and the Secretary of the department 
     under whose supervision such reservation falls (in this 
     subsection referred to as the `Secretary') shall deem a 
     condition to such license to be necessary under the first 
     proviso of such section, the license applicant may propose an 
     alternative condition that will either--
       ``(A) cost less to implement, or
       ``(B) result in improved operation of the project works for 
     electricity production.
       ``(2) Notwithstanding the first proviso of subsection (e), 
     the Secretary shall accept the alternative condition proposed 
     by the license applicant, and the Commission shall include in 
     the license such alternative condition, if the Secretary 
     determines that the alternative condition provides for the 
     adequate protection and utilization of the reservation.
       ``(3) In making the determination set forth in subsection 
     (2), the Secretary shall consult with and obtain the view of 
     the Commission.
       ``(4) The Secretary shall submit to the Commission with any 
     condition under subsection (e) or alternative condition it 
     accepts under paragraph (2) a written statement explaining 
     the basis for such condition and, if he determines not to 
     accept an alternative condition proposed by the license 
     applicant under paragraph (1), the basis for not accepting 
     such alternative condition, along with all studies, data, and 
     other information on which the Secretary based his decision.
       ``(5) The Commission shall place any statement, study, 
     data, or other information received from the Secretary under 
     paragraph (4) on the public record of the licensing 
     proceeding.
       ``(6) The Secretary shall establish schedules for the 
     submission of proposed conditions under paragraph (1) and the 
     expedited review of the acceptance or rejection of proposed 
     conditions under paragraph (2) that will enable the Secretary 
     to submit conditions to the Commission in accordance with the 
     Commission's license application review schedule.''.
       (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 Commerce 
     under this section, the licensee may propose an alternative 
     that will either--
       ``(A) cost less to implement, or
       ``(B) result in improved operation of the project works for 
     electricity production.
       ``(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 
     alternative proposed by the licensee, if the Secretary of the 
     appropriate department determines that the alternative will 
     be no less effective than the fishway initially prescribed by 
     the Secretary.
       ``(3) In making the determination set forth in subsection 
     (2), the Secretary shall consult with and obtain the view of 
     the Commission.
       ``(4) The Secretary of the appropriate department shall 
     submit to the Commission with any fishway prescription under 
     subsection (a) or alternative prescription it accepts under 
     paragraph (2) a written statement explaining the basis of 
     such prescription and, if it determines not to accept an 
     alternative prescription proposed by the licensee under 
     paragraph (1), the basis for not accepting such alternative 
     prescription, along with all studies, data, and other 
     information on which the Secretary based his decision.
       ``(5) The Commission shall place any statement, study, data 
     or other information received from the Secretary under 
     paragraph (3) on the public record of the licensing 
     proceeding.
       ``(6) The Secretary of the appropriate department shall 
     establish schedules for the submission of proposed conditions 
     under paragraph (1) and the expedited review of the 
     acceptance or rejection of proposed conditions under 
     paragraph (2) that will enable the Secretary to submit 
     conditions in accordance with the Commission's license 
     application review schedule.''.
                                  ____

  SA 2235. Mr. CRAIG submitted an amendment intended to be proposed to 
amendment SA 2171 submitted by Mr. Lott and intended to be proposed to 
the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) to 
provide for pension reform, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following and 
     redesignate accordingly:

     SEC. 1. SHORT TITLE.

       This Act may be cited as the ``Climate Change Risk 
     Management Act of 2001''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) human activities, namely energy production and use, 
     contribute to increasing concentrations of greenhouse gases 
     in the atmosphere, which may ultimately contribute to global 
     climate change beyond that resulting from natural 
     variability;
       (2) although the science of global climate change has been 
     advanced in the past ten years, the timing and magnitude of 
     climate change-related impacts on the United States cannot 
     currently be predicted with any reasonable certainty;
       (3) furthermore, a recent National Research Council review 
     of climate change science suggests that without an 
     understanding of the sources and degree of uncertainty 
     regarding climate change and its impacts, decision-makers 
     could fail to define the best ways to manage the risk of 
     climate change;
       (4) despite this uncertainty, the potential impacts from 
     human-induced climate change pose a substantial risk that 
     should be managed in a responsible manner;
       (5) given that the bulk of greenhouse gas emissions from 
     human activities result from energy production and use, 
     national and international energy policy decisions made now 
     and in the longer-term future will influence the extent and 
     timing of any climate change and resultant impacts from 
     climate change later this century;
       (6) the characteristics of greenhouse gases and the 
     physical nature of the climate system require that 
     stabilization of atmospheric greenhouse gas concentrations at 
     any future level must be a long-term effort undertaken on a 
     global basis;
       (7) the characteristics of existing energy-related 
     infrastructure and capital suggest that effective greenhouse 
     gas management efforts will depend on the development of 
     long-term, cost-effective technologies and practices that can 
     be demonstrated and deployed commercially in the United 
     States and around the world;
       (8) environmental progress, energy security, economic 
     prosperity, and satisfaction of basic human needs are 
     interrelated, particularly in developing countries;
       (9) developing countries will constitute the major source 
     of greenhouse gas emissions in the 21st century and the major 
     source of increases in such emissions;
       (10) any program to address the risks of climate change 
     that does not fully include developing nations as integral 
     participants will be ineffective;
       (11) a new long-term, technology-based, cost-effective, 
     flexible, and global strategy to ensure long-term energy 
     security and manage the risk of climate change is needed, and 
     should be promoted by the United States in its domestic and 
     international activities in this regard.

     SEC. 3. DEFINITIONS

       Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 
     13381, et seq.) is amended by inserting before section 1601 
     the following:

[[Page S12324]]

     ``SEC. 1600. DEFINITIONS.

       (1) Agricultural activity.--The term ``agricultural 
     activity'' means livestock production, cropland cultivation, 
     biogas and other waste material recovery and nutrient 
     management.
       (2) Climate system.--The term ``climate system'' means the 
     totality of the atmosphere, hydrosphere, biosphere and 
     geosphere and their interactions.
       (3) Climate change.--The term ``climate change'' means a 
     change in the state of the climate system attributed directly 
     or indirectly to human activity which is in addition to 
     natural climate variability observed over comparable time 
     periods.
       (4) Emissions.--The term ``emissions'' means the net 
     release of greenhouse gases and/or their precursors into the 
     atmosphere over a specified area and period of time, after 
     taking into account any reductions due to greenhouse gas 
     sequestration.
       (5) Greenhouse gases.--The term ``greenhouse gases'' means 
     those gaseous and aerosol constituents of the atmosphere, 
     both natural and anthropogenic, that absorb and re-emit 
     infrared radiation.
       (6) Sequestration.--The term ``sequestration'' means any 
     process, activity or mechanism which removes a greenhouse gas 
     or its precursor from the atmosphere or from emissions 
     streams.
       (7) Forest products.--The term ``forest products'' means 
     all products or goods manufactured from trees.
       (8) Forestry activity.--
       (A) In general.--The term ``forestry activity means any 
     ownership or management action that has a discernible impact 
     on the use and productivity of forests.
       (B) Inclusions.--Forestry activities include, but are not 
     limited to, the establishment of trees on an area not 
     previously forested, the establishment of trees on an area 
     previously forested if a net carbon benefit can be 
     demonstrated, enhanced forest management (including thinning, 
     stand improvement, fire protection, weed control, nutrient 
     application, pest management, and other silvicultural 
     practices), forest protection or conservation if a net 
     carbon benefit can be demonstrated, and production or use 
     of biomass energy (including the use of wood, grass or 
     other biomass in lieu of fossil fuel).
       (C) Exclusions.--The term ``forest activity'' does not 
     include a land use change associated with--
       (i) an act of war; or
       (ii) an act of nature, including floods, storms, 
     earthquakes, fires, hurricanes, and tornadoes.''.

     SEC. 4. NATIONAL CLIMATE CHANGE STRATEGY.

       (a) In General.--Section 1601 of the Energy Policy Act of 
     1992 (42 U.S.C. 13381) is amended to read as follows:

     ``SEC. 1601. NATIONAL CLIMATE CHANGE STRATEGY.

       (a) In General.--The President, in consultation with 
     appropriate Federal agencies and the Congress, shall develop 
     and implement a national strategy to manage the risks posed 
     by potential climate change.
       (b) Goal.--The strategy shall be consistent with the United 
     Nations Framework Convention on Climate Change, done at New 
     York on May 9, 1992, in a manner that--
       (1) does not result in serious harm to the U.S. economy;
       (2) adequately provides for the energy security of the 
     U.S.;
       (3) establishes and maintains U.S. leadership with respect 
     to climate change-related scientific research, development 
     and deployment of advanced energy technology; and
       (4) will result in a reduction in the ratio that the net 
     U.S. greenhouse gas emissions bears to the U.S. gross 
     domestic production.
       (c) Elements.--The strategy shall include short-term and 
     long-term strategies, programs and policies that--
       (1) enhance the scientific knowledge base for understanding 
     and evaluation of natural and human-induced climate change, 
     including the role of climate feedbacks and all climate 
     forcing agents;
       (2) improve scientific observation, modeling, analysis and 
     prediction of climate change and its impacts, and the 
     economic, social and environmental risks posed by such 
     impacts;
       (3) assess the economic, social, and environmental costs 
     and benefits of current and potential options to reduce, 
     avoid, or sequester greenhouse gas emissions.
       (4) develop and implement market-directed policies that 
     reduce, avoid or sequester greenhouse gas emissions, 
     including
       (i) cost-effective Federal, State, tribal, and local 
     policies, programs, standards and incentives;
       (ii) policies and incentives to speed development, 
     deployment and consumer adoption of advanced energy 
     technologies in the U.S. and throughout the world; and
       (iii) removal of regulatory barriers that impede the 
     development, deployment and consumer adoption of advanced 
     energy technologies in the U.S. and throughout the world; and
       (iv) participation in international institutions, or the 
     support of international activities, that are established or 
     conducted to facilitate effective measures to implement the 
     United Nations Framework Convention on Climate Change.
       (5) advance areas where bilateral or multilateral 
     cooperation and investment would lead to adoption of advanced 
     technologies for use within developing countries to reduce, 
     avoid or sequester greenhouse gas emissions;
       (6) identify activities and policies that provide for 
     adaptation to natural and human-induced climate change;
       (7) recommend specific legislative or administrative 
     activities, giving preference to cost-effective and 
     technologically feasible measures that will--
       (A) result in a reduction in the ratio that the net U.S. 
     greenhouse gas emissions bears to the U.S. gross domestic 
     product;
       (B) avoid adverse short-term and long-term economic and 
     social impacts on the United States; and
       (C) foster such changes in institutional and technology 
     systems as are necessary to mitigate or adapt to climate 
     change and its impacts in the short-term and the long-term;
       (8) designate federal, state, tribal or local agencies 
     responsible for carrying out recommended activities and 
     programs, and identify interagency entities or activities 
     that may be needed to coordinate actions carried out 
     consistent with this strategy.
       (d) Consultation.--This strategy shall be developed in a 
     manner that provides for meaningful participation by, and 
     consultation among, Federal, State, tribal, and local 
     government agencies, non-governmental organizations, 
     academia, scientific bodies, industry, the public, and other 
     interested parties.
       (e) Biannual Report.--No later than one year after the date 
     of enactment of this section, and at the end of each second 
     year thereafter, the President shall submit to Congress a 
     report that includes--
       (1) a description of the national climate change strategy 
     and its goals and Federal programs and activities intended to 
     carry out this strategy through mitigation, adaptation, and 
     scientific research activities;
       (2) an evaluation of Federal programs and activities 
     implemented as part of this strategy against the goals and 
     implementation dates outlined in the strategy;
       (3) a description of changes to Federal programs or 
     activities implemented to carry out this strategy, in light 
     of new knowledge of climate change and its impacts and costs 
     or benefits, or technological capacity to improve mitigation 
     or adaptation activities;
       (4) a description of all Federal spending on climate change 
     for the current fiscal year and each of the five years 
     previous, categorized by Federal agency and program function 
     (including scientific research, energy research and 
     development, regulation, education and other activities);
       (5) an estimate of the budgetary impact for the current 
     fiscal year and each of the five years previous of any 
     Federal tax credits, tax deductions or other incentives 
     claimed by taxpayers that are directly or indirectly 
     attributable to greenhouse gas emissions reduction 
     activities; and
       (6) an estimate of the amount, in metric tons, of 
     greenhouse gas emissions reduced, avoided or sequestered 
     directly or indirectly as a result of each spending program 
     or tax credit, deduction or other incentive for the current 
     fiscal year and each of the five years previous.
       (f) Review by National Academies.--
       (1) In general.--Not later than 90 days after the date of 
     publication of the each biannual report as directed by this 
     section, the President shall commission the National 
     Academies to conduct a review of the national climate change 
     strategy and implementation plan required by this section.
       (2) Criteria.--The National Academies' review shall 
     evaluate the goals and recommendations contained in the 
     national climate change strategy report in light of--
       (A) new or improved scientific knowledge regarding climate 
     change and its impacts;
       (B) new understanding of human social and economic 
     responses to climate change, and responses of natural 
     ecosystems to climate change;
       (C) advancements in energy technologies that reduce, avoid, 
     or sequester greenhouse gases or otherwise mitigate the risks 
     of climate change;
       (D) new or revised understanding of economic costs and 
     benefits of mitigation or adaptation activities; and
       (E) the existence of alternative policy options that could 
     achieve the strategy goals at lower economic, environmental, 
     or social cost.
       (3) Report.--The National Academies shall prepare and 
     submit to Congress and the President a report concerning the 
     results of such review, along with any recommendations as 
     appropriate. Such report shall also be made available to the 
     public.
       (4) Definition.--For the purposes of this Section, the term 
     ``National Academies'' means the National Research Council, 
     the National Academy of Sciences, the National Academy of 
     Engineering, and the Institute of Medicine.''
       (b) Conforming Amendment.--Section 1103(b) of the Global 
     Climate Protection Act of 1987 (15 U.S.C. 2901) is amended by 
     inserting ``, the Department of Energy, and other Federal 
     agencies as appropriate'' after ``Environmental Protection 
     Agency''.

     SEC. 5. CLIMATE TECHNOLOGY RESEARCH, DEVELOPMENT, 
                   DEMONSTRATION AND DEPLOYMENT PROGRAM.

       (a) In General.--Section 1604 of the Energy Policy Act of 
     1992 (42 U.S.C. 13384) is amended to read as follows:

     ``SEC. 1604. CLIMATE TECHNOLOGY RESEARCH, DEVELOPMENT, 
                   DEMONSTRATION AND DEPLOYMENT PROGRAM.

       (a) In General.--The Secretary, in consultation with the 
     Advisory Board established under section 2302, shall 
     establish a long-term Climate Technology Research, 
     Development, Demonstration, and Deployment

[[Page S12325]]

     Program, in accordance with sections 3001 and 3002.
       (b) Program Objectives.--The program shall conduct a long-
     term research, development, demonstration and deployment 
     program to foster technologies and practices that--
       (1) reduce or avoid anthropogenic emissions of greenhouse 
     gases;
       (2) remove and sequester greenhouse gases from emissions 
     streams; and
       (3) remove and sequester greenhouse gases from the 
     atmosphere.
       (c) Program Plan.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall prepare and submit 
     to the Congress a 10-year program plan to guide activities 
     under this section. Thereafter, the Secretary shall 
     biennially update and resubmit the program plan to the 
     Congress. In preparing the program plan, the Secretary shall:
       (1) include quantitative technology performance and carbon 
     emissions reduction goals, schedule milestones, technology 
     approaches, Federal funding requirements, and non-Federal 
     cost sharing requirements;
       (2) consult with appropriate representatives of industry, 
     institutions of higher education, Department of Energy 
     national laboratories, and professional, scientific and 
     technical societies;
       (3) take into consideration how the Federal Government, 
     acting through the Secretary, can be effective in ensuring 
     the availability of such technologies when they are needed 
     and how the Federal Government can most effectively cooperate 
     with the private sector in the accomplishment of the goals 
     set forth in subsection (b); and
       (4) consider how activities funded under the program can be 
     complementary to, and not duplicative of, existing research 
     and development activities within the Department.
       (d) Solicitation.--Not later than 1 year after the date of 
     submission of the 10-year program plan, the Secretary shall 
     solicit proposals for conducting activities consistent with 
     the 10-year plan and select one or more proposals not later 
     than 180 days after such solicitations.
       (e) Proposals.--Proposals may be submitted by applicants or 
     consortia from industry, institutions of higher education, or 
     Department of Energy national laboratories. At minimum, each 
     proposal shall also include the following:
       (1) a multi-year management plan that outlines how the 
     proposed research, development, demonstration and deployment 
     activities will be carried out;
       (2) quantitative technology goals and greenhouse gas 
     emission reduction targets that can be used to measure 
     performance against program objectives;
       (3) the total cost of the proposal for each year in which 
     funding is requested, and a breakdown of those costs by 
     category;
       (4) evidence that the applicant has in existence or has 
     access to--
       (i) the technical capability to enable it to make use of 
     existing research support and facilities in carrying out the 
     research objectives of the proposal;
       (ii) a multi-disciplinary research staff experienced in 
     technologies or practices able to sequester, avoid, or 
     capture greenhouse gas emissions;
       (iii) access to facilities and equipment to enable the 
     conduct of laboratory-scale testing or demonstration of 
     technologies or related processes undertaken through the 
     program; and
       (iv) commitment for matching funds and other resources from 
     non-Federal sources, including cash, equipment, services, 
     materials, appropriate technology transfer activities, and 
     other assets directly related to the cost of the proposal;
       (5) evidence that the proposed activities are supplemental 
     to, and not duplicative of, existing research and development 
     activities carried out, funded, or otherwise supported by the 
     Department;
       (6) a description of the technology transfer mechanisms and 
     industry partnerships that the applicant will use to make 
     available research results to industry and to other 
     researchers;
       (7) a statement whether the unique capabilities of 
     Department of Energy national laboratories warrant 
     collaboration with those laboratories, and the extent of any 
     such collaboration proposed; and
       (8) demonstrated evidence of the ability of the applicant 
     to undertake and complete the proposed project, including the 
     successful introduction of the technology into commerce.
       (f) Selection of Proposals.--From the proposals submitted, 
     the Secretary shall select for funding one or more proposals 
     that will best accomplish the program objectives outlined in 
     this section.
       (g) Annual Report.--The Secretary shall prepare and submit 
     an annual report to Congress that--
       (1) demonstrates that the program objectives are adequately 
     focused, peer-reviewed for merit, and not unnecessarily 
     duplicative of the science and technology research being 
     conducted by other Federal agencies and programs,
       (2) states whether the program as conducted in the prior 
     year addresses an adequate breadth and range of technologies 
     and solutions to address anthropogenic climate change; and
       (3) evaluates the quantitative progress of funded proposals 
     towards the program objectives outlined in this section, and 
     the technology and greenhouse gas emission reduction, 
     avoidance or sequestration goals as described in their 
     respective proposals.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subtitle $200,000,000 
     for each of fiscal years 2002 through 2011, to remain 
     available until expended.''.
       (b) Conforming Amendments.--Section 6 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5905) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3) by striking the period at the end and 
     inserting ``, and''; and
       (C) by adding at the end of the following:
       ``(4) solutions to the effective management of greenhouse 
     gas emissions in the long term by the development of 
     technologies and practices designed to--
       (A) reduce or avoid anthropogenic emissions of greenhouse 
     gases;
       (B) remove and sequester greenhouse gases from emissions 
     streams; and
       (C) remove and sequester greenhouse gases from the 
     atmosphere.''; and
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``subsection (a)(1) 
     through (3)'' and inserting ``paragraphs (1) through (4) of 
     subsection (a)''; and
       (B) in paragraph (3)--
       (i) in subparagraph (R), by striking ``and'' at the end;
       (ii) in subparagraph (S), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(T) to pursue a long-term climate technology strategy 
     designed to demonstrate a variety of technologies by which 
     stabilization of greenhouse gases might be best 
     achieved, including accelerated research, development, 
     demonstration and deployment of--
       (i) renewable energy systems;
       (ii) advanced fossil energy technology;
       (iii) advanced nuclear power plant design;
       (iv) fuel cell technology for residential; industrial and 
     transportation applications:
       (v) carbon sequestration practices and technologies, 
     including agricultural and forestry practices that store and 
     sequester carbon;
       (vi) efficient electrical generation, transmission and 
     distribution technologies; and
       (vii) efficient end use energy technologies.''.

     SEC. 6. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT PROGRAM.

       Section 1608 of the Energy Policy Act of 1992 (42 U.S.C. 
     13387) is amended by striking subsection (l) and inserting 
     the following:
       ``(l) International Energy Technology Deployment Program.--
       (l) Definitions.--In this subsection:
       (A) International energy deployment project.--The term 
     ``international energy deployment project'' means a project 
     to construct an energy production facility outside the United 
     States--
       (i) the output of which will be consumed outside the United 
     States; and
       (ii) the deployment of which will result in a greenhouse 
     gas reduction per unit of energy produced when compared to 
     the technology that would otherwise be implemented of--
       (I) 10 percentage points or more, in the case of a unit 
     placed in service before January 1, 2010;
       (II) 20 percentage points or more, in the case of a unit 
     placed in service after December 31, 2009, and before January 
     1, 2020; or
       (III) 30 percentage points or more, in the case of a unit 
     placed in service after December 31, 2019, and before January 
     1, 2030.
       (C) Qualifying international energy deployment project.--
     The term ``qualifying international energy deployment 
     project'' means an international energy deployment project 
     that--
       (i) is submitted by a United States firm to the Secretary 
     in accordance with procedures established by the Secretary by 
     regulation;
       (ii) uses technology that has been successfully developed 
     or deployed in the United States, or in another country as a 
     result of a partnership with a company based in the United 
     States;
       (iii) meets the criteria of subsection (k);
       (iv) is approved by the Secretary, with notice of the 
     approval being published in the Federal Register; and
       (v) complies with such terms and conditions as the 
     Secretary establishes by regulation.
       (D) United States.--The term ``United States'', when used 
     in a geographical sense, means the 50 States, the District of 
     Columbia, Puerto Rico, Guam, the Virgin Islands, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands.
       (2) Pilot program for financial assistance.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall, by regulation, 
     provide for a pilot program for financial assistance for 
     qualifying international energy deployment projects.
       (B) Selection criteria.--After consultation with the 
     Secretary of State, the Secretary of Commerce, and the United 
     States Trade Representative, the Secretary shall select 
     projects for participation in the program based solely on the 
     criteria under this title and without regard to the country 
     in which the project is located.
       (C) Financial assistance.--
       (i) In general.--A United States firm that undertakes a 
     qualifying international energy deployment project that is 
     selected to participate in the pilot program shall be 
     eligible

[[Page S12326]]

     to receive a loan or a loan guarantee from the Secretary.
       (ii) Rate of interest.--The rate of interest of any loan 
     made under clause (i) shall be equal to the rate for Treasury 
     obligations then issued for periods of comparable maturities.
       (iii) Amount.--The amount of a loan or loan guarantee under 
     clause (i) shall not exceed 50 percent of the total cost of 
     the qualified international energy deployment project.
       (iv) Developed countries.--Loans or loan guarantees made 
     for projects to be located in a developed country, as listed 
     in Annex I of the United Nations Framework Convention on 
     Climate Change, shall require at least a 50% contribution 
     towards the total cost of the loan or loan guarantee by the 
     host country.
       (v) Developing countries.--Loans or loan guarantees made 
     for projects to be located in a developed country (those 
     countries not listed in Annex I of the United Nations 
     Framework Convention on Climate Change) shall require at 
     least a 10% contribution towards the total cost of the loan 
     or loan guarantee by the host country.
       (vi) Capacity building research.--Proposals made for 
     projects to be located in a developing country may include a 
     research component intended to build technological capacity 
     within the host country. Such research must be related to the 
     technologies being deployed and must involve both an 
     institution in the host country and an industry, 
     university or national laboratory participant from the 
     United States. The host institution must contribute at 
     least 50% of funds provided for the capacity building 
     research.
       (D) Coordination with other programs.--A qualifying 
     international energy deployment project funded under this 
     section shall not be eligible as a qualifying clean coal 
     technology under section 415 of the Clean Air Act (42 U.S.C. 
     7651n).
       (E) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall submit to the 
     President and the Congress a report on the results of the 
     pilot projects.
       (F) Recommendations.--Not later than 60 days after 
     receiving the report under subparagraph (E), the Secretary 
     shall submit to Congress a recommendation concerning whether 
     the financial assistance program under this section should be 
     continued, expanded, reduced, or eliminated.
       (G) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of fiscal years 2002 through 2011, to remain available 
     until expended.''.

     SEC. 7. NATIONAL GREENHOUSE GAS EMISSIONS REGISTRY.

       Section 1605 of the Energy Policy Act of 1992 (42 U.S.C. 
     13385) is amended--
       (1) by amending the second sentence of subsection (a) to 
     read as follows:
       ``The Secretary shall annually update and analyze such 
     inventory using available data, including, beginning in 
     calendar year 2001, information collected as a result of 
     voluntary reporting under subsection (b). The inventory shall 
     identify for calendar year 2001 and thereafter the amount of 
     emissions reductions attributed to those reported under 
     subsection (b)'';
       (2) by amending subsection (b)(1)(B) and (C) to read as 
     follows--
       ``(B) annual reductions or avoidance of greenhouse gas 
     emissions and carbon sequestration achieved through any 
     measures, including agricultural activities, co-generation, 
     appliance efficiency, energy efficiency, forestry activities 
     that increase carbon sequestration stocks (including the use 
     of forest products), fuel switching, management of crop 
     lands, grazing lands, grasslands and drylands, manufacture or 
     use of vehicles with reduced greenhouse gas emissions, 
     methane recovery, ocean seeding, use of renewable energy, 
     chlorofluorocarbon capture and replacement, and power plant 
     heat rate improvement; and
       (C) reductions in, or avoidance of, greenhouse gas 
     emissions achieved as a result of voluntary activities 
     domestically, or internationally, plant or facility closings, 
     and State or Federal requirements.''.
       (3) by striking in the first sentence of subsection (b)(2) 
     the word ``entities'' and inserting ``persons or entities'' 
     and in the second sentence of such subsection, by inserting 
     after ``Persons'' the words ``or entities'';
       (4) by inserting in the second sentence of subsection 
     (b)(4) the words ``persons or'' before ``entity'';
       (5) by adding after subsection (b)(4) the following new 
     paragraphs--
       ''(5) Recognition of voluntary greenhouse gas emissions 
     reduction, avoidance, or sequestration.--To encourage new and 
     increased voluntary efforts to reduce, avoid, or sequester 
     emissions of greenhouse gases, the Secretary shall develop 
     and establish a program of giving annual public recognition 
     to all reporting persons and entities demonstrating 
     voluntarily achieved greenhouse gases reduction, avoidance, 
     or sequestration, pursuant to the voluntary collections and 
     reporting guidelines issued under this section. Such 
     recognition shall be based on the information certified, 
     subject to section 1001 of title 18, United States Code, by 
     such persons or entities for accuracy as provided in 
     paragraph 2 of this subsection, and shall include such 
     information reported prior to the enactment of this 
     paragraph. At a minimum such recognition shall annually be 
     published in the Federal Register.
       (6) Review and revision of guidelines.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this subparagraph, the Secretary of Energy, 
     acting through the Administrator of the Energy Information 
     Administration, shall conduct a review of guidelines 
     established under this section regarding the accuracy and 
     reliability of reports of greenhouse gas reductions and 
     related information.
       (B) Contents.--The review shall include the consideration 
     of the need for any amendments to such guidelines, 
     including--
       (i) a random or other verification process using the 
     authorities available to the Secretary under other provisions 
     of law;
       (ii) a range of reference cases for reporting of project-
     based activities in sectors, including the measures specified 
     in subparagraph (1)(B) of this subsection, and the inclusion 
     of benchmark and default methodologies and best practices for 
     use as reference cases for eligible projects;
       (iii) issues, such as comparability, that are associated 
     with the option of reporting on an entity-wide basis or on an 
     activity or project basis; and
       (iv) safeguards to address the possibility of reporting, 
     inadvertently or otherwise, of some of all of the same 
     greenhouse gas emissions reductions by more than one 
     reporting entity or person and to make corrections where 
     necessary;
       (v) provisions that encourage entities or persons to 
     register their certified, by appropriate and credible means, 
     baseline emissions levels on an annual basis, taking into 
     consideration all of their reports made under this section 
     prior to the enactment of this paragraph;
       (vi) procedures and criteria for the review and 
     registration of ownership of all or part of any reported and 
     verified emissions reductions relative to a reported 
     baseline emissions level under this section; and
       (vii) accounting provisions needed to allow for changes in 
     registration of ownership of emissions reductions resulting 
     from a voluntary private transaction between reporting 
     entities or persons.

     For the purposes of this paragraph, the term ``reductions'' 
     means any and all activities taken by a reporting entity or 
     person that reduce, avoid or sequester greenhouse gas 
     emissions, or sequester greenhouse gases from the atmosphere.
       (C) Economic analysis.--The review should consider the 
     costs and benefits of any such amendments, the effect of such 
     amendments on participation in this program, including by 
     farmers and small businesses, and the need to avoid creating 
     undue economic advantages or disadvantages for persons or 
     entities in the private sector. The review should provide, 
     where appropriate, a range of reasonable options that are 
     consistent with the voluntary nature of this section and that 
     will help further the purposes of this section.
       (D) Public comment and submission of report.--The findings 
     of the review shall be made available in draft form for 
     public comment for at least 45 days, and a report containing 
     the findings of the review shall be submitted to Congress and 
     the President no later than one year after date of enactment 
     of this section.
       (E) Revision of guidelines.--If the Secretary, after 
     consultation with the Administrator, finds, based on the 
     study results, that changes to the program are likely to be 
     beneficial and cost effective in improving the accuracy and 
     reliability of reported greenhouse gas reductions and related 
     information, are consistent with the voluntary nature of this 
     section, and further the purposes of this section, the 
     Secretary shall propose and promulgate changes to program 
     guidelines based with such findings. In carrying out the 
     provisions of this paragraph, the Secretary shall consult 
     with the Secretary of Agriculture and the Administrator of 
     the Small Business Administration to encourage greater 
     participation by small business and farmers in addressing 
     greenhouse gas emission reductions and reporting such 
     reductions.
       (F) Periodic review and revision of guidelines.--The 
     Secretary shall thereafter review and revise these guidelines 
     at least once every 5 years, following the provisions for 
     economic analysis, public review, and revision set forth in 
     subsections (C) through (E) of this section.''
       (6) in subsection (c), by inserting ``the Secretary of the 
     Department of Agriculture, the Secretary of the Department of 
     Commerce, the Administrator of the Energy Information 
     Administration, and'' before ``the Administrator''; and
       (7) by adding at the end the following:
       ``(d) Public Awareness Program.--
       (1) In general.--The Secretary shall create and implement a 
     public awareness program to educate all persons in the United 
     States of--
       (A) the direct benefits of engaging in voluntary greenhouse 
     gas emissions reduction measures and having the emissions 
     reductions certified under this section and available for use 
     therein; and
       (B) the case of use of the forms and procedures for having 
     emissions reductions certified under this section.
       (2) Agricultural and small business outreach.--The 
     Secretary of Agriculture and the Administrator of the Small 
     Business Administration shall assist the Secretary in 
     creating and implementing a targeted public awareness program 
     to encourage voluntary participation by small businesses and 
     farmers.''

[[Page S12327]]

     SEC. 8. REVIEW OF FEDERALLY FUNDED ENERGY TECHNOLOGY RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--Title XVI of the Energy Policy Act of 1992 
     (42 U.S.C. 13381 et seq.) is amended by adding the following 
     new section:

     ``SEC. 1610. REVIEW OF FEDERALLY FUNDED ENERGY TECHNOLOGY 
                   RESEARCH AND DEVELOPMENT.

       (a) Department of Energy Review.--
       (1) In general.--The Secretary shall review annually all 
     federally funded research and development activities carried 
     out with respect to energy technology; and submit to a report 
     to Congress by October 15 of each year.
       (2) Assessment of technology readiness and barriers to 
     deployment.--As part of this review, the Secretary shall--
       (A) assess the status and readiness (including the 
     potential commercialization) of each energy technology and 
     any regulatory or market barriers to deployment;
       (B) consider--
       (i) the length of time it will take for deployment and use 
     of the energy technology and for the technology to have a 
     meaningful impact on emission reductions;
       (ii) the cost of deploying the energy technology; and
       (iii) the safety of the energy technology;
       (C) assess the available resource base for any energy 
     resources used by the energy technology, and the potential 
     for expanded sustainable use of the resource base; and
       (D) recommend to Congress any changes in law or regulation 
     deemed appropriate by the Secretary to hasten deployment and 
     use of the energy technology.
       (b) energy Technology Research and Development 
     Clearinghouse.--The Secretary shall establish an information 
     clearinghouse to facilitate the transfer and dissemination of 
     the results of federally funded research and development 
     activities being carried out on energy technology subject 
     to any restrictions or safeguards established for national 
     security or the protection of intellectual property rights 
     (including trade secrets and confidential business 
     information protected under section 552(b)(4) of title 5, 
     United States Code).''
       (c) Technical Amendment.--The table of contents of the 
     Energy Policy Act of 1992 (106 Stat. 2776) is amended by 
     inserting after the item relating to section 1609 the 
     following:

``Sec. 1610. Review of federally funded energy technology research and 
              development.''.

     SEC. 9. OFFICE OF APPLIED ENERGY TECHNOLOGY AND GREENHOUSE 
                   GAS MANAGEMENT.

       Section 1603 of the Energy Policy Act of 1992 (42 U.S.C. 
     13383) is amended to read as follows:

     ``SEC. 1603. OFFICE OF APPLIED ENERGY TECHNOLOGY AND 
                   GREENHOUSE GAS MANAGEMENT.

       (a) Establishment.--There is established by this section in 
     the Department of Energy an Office of Applied Energy 
     Technology and Greenhouse Gas Management.
       (b) Function.--The Office shall--
       (1) establish appropriate quantitative performance and 
     deployment goals for energy technologies that reduce, avoid, 
     or sequester emissions of greenhouse gases, provided that 
     such goals are consistent with any national climate change 
     strategy;
       (2) manage domestic and international energy technology 
     demonstration and deployment programs for energy technologies 
     that reduce, avoid or sequester emissions of greenhouse 
     gases, including those authorized under this title; provided 
     that such programs supplement and do not replace existing 
     energy research and development activities within the 
     Department;
       (3) facilitate the development of domestic and 
     international cooperative research and development agreements 
     (as that term is defined in section 12(d)(1) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(d)(1))), or similar cooperative, cost-shared 
     partnerships with non-Federal organizations to accelerate the 
     rate of domestic and international demonstration and 
     deployment of energy technologies that reduce, avoid or 
     sequester emissions of greenhouse gases;
       (4) conduct necessary programs of monitoring, 
     experimentation, and analysis of the technological, 
     scientific, and economic viability of energy technologies 
     that reduce, avoid, or sequester greenhouse gas emissions; 
     and
       (5) coordinate issues, policies, and activities for the 
     Department regarding climate change and related energy 
     matters pursuant to this title, and coordinate the issuance 
     of such reports as may be required under this title.
       (c) Director.--The Secretary shall appoint a director of 
     the Office, who--
       (1) shall report to the Secretary;
       (2) shall be compensated at no less than level IV of the 
     Executive Schedule; and
       (3) at the request of the Committees of the Senate and 
     House of Representatives with appropriation and legislative 
     jurisdiction over programs and activities of the Department 
     of Energy, shall report to Congress on the activities of the 
     Office.
       (d) Duties.--The Director shall, in addition to performing 
     all functions necessary to carry out the functions of the 
     Office--
       (1) in the absence of the Secretary, serve as the 
     Secretary's representative for interagency and multilateral 
     policy discussions of global climate change, including the 
     activities of the Committee on Earth and Environmental 
     Sciences as established by the Global Change Research Act of 
     1990 (15 U.S.C. 2921 et seq.);
       (2) participate, in cooperation with other federal 
     agencies, in the development and monitoring of domestic and 
     international policies for their effects on any kind of 
     climate change globally and domestically and on the 
     generation, reduction, avoidance, and sequestration of 
     greenhouse gases;
       (3) develop and implement a balanced, scientific, non-
     advocacy educational and informational public awareness 
     program on--
       (A) potential climate change, including any known adverse 
     and beneficial effects on the United States and the economy 
     of the United States and the world economy, taking into 
     consideration whether those effects are known or expected to 
     be temporary, long-term, or permanent;
       (B) the role of national energy policy in the determination 
     of current and future emissions of greenhouse gases, 
     particularly measures that develop advanced energy 
     technologies, improve energy efficiency, or expand the use of 
     renewable energy or alternative fuels; and
       (C) the development of voluntary means and measures to 
     mitigate or minimize significant adverse effects of climate 
     change and, where appropriate, to adapt, to the greatest 
     extent practicable, to climate change.
       (4) provide, consistent with applicable provisions of law, 
     public access to all information on climate change, effects 
     of climate change, and adaptation to climate change; and
       (5) in accordance with all law administered by the 
     Secretary and other applicable Federal law and contracts, 
     including patent and intellectual property laws, and in 
     furtherance of the United Nations Framework Convention on 
     Climate Change--
       (i) identify for, and transfer, deploy, diffuse, and apply 
     to, Parties to such Convention, including the United States, 
     any technologies, practices, or processes which reduce, 
     avoid, or sequester emissions of greenhouse gases if such 
     technologies, practices or processes have been developed with 
     funding from the Department of Energy or any of its 
     facilities or laboratories; and
       (ii) support reasonable efforts by the Parties to such 
     convention, including the United States, to identify and 
     remove legal, trade, financial, and other barriers to the use 
     and application of any technologies, practices, or processes 
     which reduce, avoid, or sequester emissions of greenhouse 
     gases.''.

     SEC. 10. COORDINATION OF GLOBAL CHANGE RESEARCH.

       (A) Definitions.-- As used in this Section, the term--
       (1) ``Committee'' means the Committee on Earth and 
     Environmental Sciences established under Section 102 of the 
     Global Change Research Act of 1990 (15 U.S.C. 2933).
       (2) ``Program'' means the United States Global Change 
     Research Program established under Section 103 of the Global 
     Change Research Act of 1990 (15 U.S.C. 2933).
       (b) Coordination of Climate Observation Activities.--At the 
     direction of the Committee, the Director of the Program shall 
     develop and implement activities within the Program that--
       (1) coordinate system design and implementation and 
     operation of a multi-user, multi-purpose long-term climate 
     observing system for the measurement and monitoring of 
     relevant climatic variables;
       (2) carry out basic research, development and deployment of 
     innovative scientific techniques and instruments (both in-
     situ and space-based) for measurement and monitoring of 
     relevant climatic variables;
       (3) coordinate Program activities to ensure the integrity 
     and continuity of data records; including--
       (i) calibration and inter-comparison of multiple 
     instruments that measure the same climatic variable or set of 
     variables;
       (ii) backup instruments to ensure data record continuity; 
     and
       (iii) documentation of changes in instruments, observing 
     practices, observing locations, sampling rates, processing 
     algorithms and other changes;
       (4) establish ongoing activities for the development, 
     implementation, operation and management of climate-specific 
     observational programs with special emphasis on activities 
     that seek the most efficient and reliable means of observing 
     the climate system;
       (5) coordinate activities of the Program that contribute to 
     the design, implementation, operation, and data management 
     activities of international climate system observation 
     networks; and
       (6) establish and maintain a free and openly accessible 
     national data management system for the storage, maintenance, 
     and archival of climate observation data, with an emphasis on 
     facilitating access to, use of and interpretation of such 
     data by the scientific research community and the public.
       (c) Coordination of Climate Modeling Activities.--At the 
     direction of the Committee, the Director of the Program shall 
     develop and implement activities within the Program that--
       (1) establish and periodically revise a national climate 
     system modeling strategy designed to position the United 
     States as a world leader in all aspects of climate system 
     modeling;
       (2) coordinate Program activities designed to carry out 
     such a national climate system modeling strategy;
       (3) carry out basic research, development and deployment of 
     innovative computational techniques for climate system 
     modeling;
       (4) develop the intellectual and computational capacity to 
     carry out climate system

[[Page S12328]]

     modeling activities to assess the potential consequences of 
     climate change on the United States;
       (5) carry out the continued development and inter-
     comparison of United States climate models with special 
     emphasis on activities that--
       (i) establish the ability of United States climate models 
     to successfully reproduce the historical climate 
     observational record;
       (ii) incorporate new climate system processes or improve 
     spatial temporal resolution of climate model simulations;
       (iii) develop standardized tools and structures for climate 
     model output, evaluation and programming design;
       (iv) improve the accuracy and completeness of supporting 
     data sets used to drive climate models; and
       (v) reduce uncertainty in assessments of climate change and 
     its impacts on the United States.
       (6) coordinate activities of the Program that contribute to 
     the design, implementation, operation, and data analysis 
     activities of international climate system modeling inter-
     comparisons and assessments; and
       (7) establish and maintain a free and openly accessible 
     national data management system for the storage, maintenance, 
     and archival of climate model code, auxiliary data, and 
     results, with an emphasis on facilitating access to, use of 
     and interpretation of such data by the scientific research 
     community and the public.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2002 through 2004, to remain available 
     until expended, and thereafter such sums as are necessary.
       (e) Use of Existing Infrastructure.--In carry out new 
     activities under subsections (b) and (c) of this section, the 
     Program shall, where possible, use and incorporate existing 
     Program activities and resources, such as Program Working 
     Groups.
                                  ____

  SA 2236. Mr. DOMENICI submitted an amendment intended to be proposed 
to amendment SA 2171 submitted by Mr. Lott and intended to be proposed 
to the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) 
to provide for pension reform, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert the 
     following:

             Subtitle  --Price-Anderson Act Reauthorization

     SEC.    101. SHORT TITLE.

       This subtitle may be cited as the ``Price-Anderson Act 
     Reauthorization Act of 2001''.

     SEC.  102. INDEMNIFICATION AUTHORITY.

       (a) Multiple Reactors.--Section 170 b. of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2210(b)(1)) is amended by adding after 
     the first proviso and before: ``Such primary financial 
     protection. . . .'': ``And provided further, That for 
     multiple modular reactors located at a single site, a 
     combination of such reactors (irrespective of whether they 
     are licensed jointly or singly) having a total rated capacity 
     between 100,000 and 950,000 electrical kilowatts shall, 
     exclusively and only for the purpose of this section, be 
     denominated a single facility having a rated capacity of 
     100,000 electrical kilowatts or more.''
       (b) Indemnification of NRC Licensees.--Section 170 c. of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is amended 
     by striking ``August 1, 2002'' each place it appears and 
     inserting ``August 1, 2012''.
       (c) Indemnification of DOE Contractors.--Section 170 
     d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d)(1)(A)) is amended by striking ``, until August 1, 
     2002,''.
       (d) Indemnification of Nonprofit Educational 
     Institutions.--Section 170 k. of the Atomic Energy Act of 
     1954 (42 U.S.C. 2210(k)) is amended by striking ``August 1, 
     2002'' each place it appears and inserting ``August 1, 
     2012''.

     SEC.  103. DOE LIABILITY LIMIT.

       (a) Aggregate Liability limit.--Section 170 d. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by 
     striking subsection (2) and inserting the following:
       ``(2) In agreements of indemnification entered into under 
     paragraph (1), the Secretary--
       ``(A) may require the contractor to provide and maintain 
     financial protection of such a type and in such amounts as 
     the Secretary shall determine to be appropriate to cover 
     public liability arising out of or in connection with the 
     contractual activity, and
       ``(B) shall indemnify the persons indemnified against such 
     claims above the amount of the financial protection required, 
     in the amount of $10,000,000,000 (subject to adjustment for 
     inflation under subsection t.), in the aggregate, for all 
     persons indemnified in connection with such contract and for 
     each nuclear incident, including such legal costs of the 
     contractor as are approved by the Secretary.''.
       (b) Contract Amendments.--Section 170 d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(d)) is further amended by 
     striking subsection (3) and inserting the following:
       ``(3) All agreements of indemnification under which the 
     Department of Energy (or its predecessor agencies) may be 
     required to indemnify any person, shall be deemed to be 
     amended, on the date of the enactment of the Price-Anderson 
     Amendments Act of 2001, to reflect the amount of indemnity 
     for public liability and any applicable financial protection 
     required of the contractor under this subsection on such 
     date.''.

     SEC.  104. INCIDENTS OUTSIDE THE UNITED STATES.

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

     SEC.  105. REPORTS.

       Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(p)) is amended by striking ``August 1, 1998'' and 
     inserting ``August 1, 2008''.

     SEC.  106. INFLATION ADJUSTMENT.

       Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(t)) is amended--
       (a) by renumbering paragraph (2) as paragraph (3); and
       (b) by adding after paragraph (1) the following new 
     paragraph:
       ``(2) The Secretary shall adjust the amount of 
     indemnification provided under an agreement of 
     indemnification under subsection d. not less than once during 
     each 5-year period following the date of the enactment of the 
     Price-Anderson Amendments Act of 2001, in accordance with the 
     aggregate percentage change in the Consumer Price Index 
     since--
       ``(A) such date of enactment in the case of the first 
     adjustment under this subsection; or
       ``(B) the previous adjustment under this subsection.''.

     SEC.  107. CIVIL PENALTIES

       (a) Repeal of Automatic Remission.--Section 234A b.(2) of 
     the Atomic Energy of 1954 (42 U.S.C. 2282a(b)(2)) is amended 
     by striking the last sentence.
       (b) Limitation for Nonprofit Institutions.--Section 234A of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282(a) is further 
     amended by striking subsection d. and inserting the 
     following:
       ``d. Notwithstanding subsection a., no contractor, 
     subcontractor, or supplier considered to be nonprofit under 
     the Internal Revenue Code of 1954 shall be subject to a civil 
     penalty under this section in excess of the amount of the 
     performance fee paid by the Secretary to such contractor, 
     subcontractor, or supplier under the contract in the fiscal 
     year under which the violation or violations occur.''.

     SEC.  108. EFFECTIVE DATE.

       (a) In General.--The amendments made by this subtitle shall 
     become effective on the date of the enactment of this 
     subtitle.
       (b) Indemnificaiton Provisions.--The amendments made by 
     sections 2103, 2104, and 2105 shall not apply to any nuclear 
     incident occurring before the date of the enactment of this 
     subtitle.
       (c) Civil Penalty Provisions.--The amendments made by 
     section 2108 to section 234A of the Atomic Energy Act of 1954 
     (42 U.S.C. 2281a(b)(2)) shall not apply to any violation 
     occurring under a contract entered into before the date of 
     the enactment of this subtitle.
                                  ____

  SA 2237. Mr. DOMENICI submitted an amendment intended to be proposed 
to amendment SA 2171 submitted by Mr. Lott and intended to be proposed 
to the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) 
to provide for pension reform, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place in the Amendment, insert the 
     following:

     SEC.   . OFFICE OF SPENT NUCLEAR FUEL RESEARCH.

       (a) Findings.--Congress finds that--
       (1) before the Federal Government takes any irreversible 
     action relating to the disposal of spent nuclear fuel, 
     Congress must determine whether the spent fuel in the 
     repository should be treated as waste subject to permanent 
     burial or should be considered an energy resource that is 
     needed to meet future energy requirements; and
       (2) national policy on spent nuclear fuel may evolve with 
     time as improved technologies for spent fuel are developed or 
     as national energy needs evolve.
       (b) Definitions.--In this section:
       (1) Associate Director.--The term ``Associate Director'' 
     means the Associate Director of the Office.
       (2) Office.--The term ``Office'' means the Office of Spent 
     Nuclear Fuel Research within the Office of Nuclear Energy 
     Science and Technology of the Department of Energy.
       (c) Establishment.--There is established an Office of Spent 
     Nuclear Fuel Research within the Office of Nuclear Energy 
     Science and Technology of the Department of Energy.
       (d) Head of Office.--The Office shall be headed by the 
     Associate Director, who shall be a member of the Senior 
     Executive Service appointed by the Director of the Office of 
     Nuclear Energy Science and Technology, and compensated at a 
     rate determined by applicable law.
       (e) Duties of the Associate Director.--
       (1) In general.--The Associate Director shall be 
     responsible for carrying out an integrated research, 
     development, and demonstration program on technologies for 
     treatment, recycling, and disposal of high-level nuclear 
     radioactive waste and spent nuclear fuel, subject to the 
     general supervision of the Secretary.

[[Page S12329]]

       (2) Participation.--The Associate Director shall coordinate 
     the participation of national laboratories, universities, the 
     commercial nuclear industry, and other organizations in the 
     investigation of technologies for the treatment, recycling, 
     and disposal of spent nuclear fuel and high-level radioactive 
     waste.
       (3) Activities.--The Associate Director shall--
       (A) develop a research plan to provide recommendations by 
     2015;
       (B) identify promising technologies for the treatment, 
     recycling, and disposal of spent nuclear fuel and high-level 
     radioactive waste;
       (C) conduct research and development activities for 
     promising technologies;
       (D) ensure that all activities include as key objectives 
     minimization of proliferation concerns and risk to the health 
     of the general public or site workers, as well as development 
     of cost-effective technologies;
       (E) require research on both reactor- and accelerator-based 
     transmutation systems;
       (F) require research on advanced processing and 
     separations;
       (G) include participation of international collaborators in 
     research efforts, and provide funding to a collaborator that 
     brings unique capabilities not available in the United States 
     if the country in which the collaborator is located is unable 
     to provide for their support; and
       (H) ensure that research efforts are coordinated with 
     research on advanced fuel cycles and reactors conducted by 
     the Office of Nuclear Energy Science and Technology.
       (f) Grant and Contract Authority.--The Secretary may make 
     grants, or enter into contracts, for the purposes of the 
     research projects and activities described in this section.
       (g) Report.--The Associate Director shall annually submit 
     to Congress a report on the activities and expenditures of 
     the Office that describes the progress being made in 
     achieving the objectives of this section.
                                  ____

  SA 2238.  Mr. DOMENICI submitted an amendment intended to be proposed 
to amendment SA 2171 submitted by Mr. Lott and intended to be proposed 
to the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) 
to provide for pension reform, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place in the Amendment, insert the 
     following:

     SEC. . UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

       (a) Establishment.--The Secretary shall support a program 
     to maintain the nation's human resource investment and 
     infrastructure in the nuclear sciences and engineering and 
     related fields (including health physics and nuclear and 
     radiochemistry), consistent with departmental missions 
     related to civilian nuclear research and development.
       (b) Duties.--In carrying out the program under this 
     section, the Secretary shall--
       (1) develop a graduate and undergraduate fellowship program 
     to attract new and talented students;
       (2) assist universities in recruiting and retaining new 
     faculty in the nuclear sciences and engineering through a 
     Junior Faculty Research Initiation Grant Program;
       (3) support fundamental nuclear sciences and engineering 
     research through the Nuclear Engineering Education Research 
     Program;
       (4) encourage collaborative nuclear research between 
     industry, national laboratories and universities through the 
     Nuclear Energy Research Initiative; and
       (5) support communication and outreach related to nuclear 
     science and engineering.
       (c) Maintaining University Research and Training Reactors 
     and Associated Infrastructure.--Activities under this section 
     may include:
       (1) converting research reactors to low-enrichment fuels, 
     upgrading operational instrumentation, and sharing of 
     reactors among universities;
       (2) providing technical assistance, in collaboration with 
     the U.S. nuclear industry, in relicensing and upgrading 
     training reactors as part of a student training program;
       (3) providing funding for reactor improvements as part of a 
     focused effort that emphasizes research, training, and 
     education.
       (d) University-National Laboratory Interactions.--The 
     Secretary shall develop--
       (1) a sabbatical fellowship program for university 
     professors to spend extended periods of time at National 
     Laboratories in the areas of nuclear science and technology; 
     and
       (2) a visiting scientist program in which National 
     Laboratory staff can spend time in academic nuclear science 
     and engineering departments. The Secretary may provide for 
     fellowships for students to spend time at National 
     Laboratories in the area of nuclear science with a member of 
     the Laboratory staff acting as a mentor.
       (e) Operating and Maintenance Costs.--Funding for a 
     research project provided under this section may be used to 
     offset a portion of the operating and maintenance costs of a 
     university research reactor used in the research project, on 
     a cost-shared basis with the university.
       (f) Authorization of Appropriations.--From amounts 
     authorized under section 4401, the following amounts are 
     authorized for activities under the section--
       (1) $19,000,000 for fiscal year 2002;
       (2) $33,000,000 for fiscal year 2003;
       (3) $37,900,000 for fiscal year 2004;
       (4) $43,600,000 for fiscal year 2005; and
       (5) $50,100,000 for fiscal year 2006.
                                  ____

  SA 2239. Mr. DOMENICI submitted an amendment intended to be proposed 
to amendment SA 2171 submitted by Mr. Lott and intended to be proposed 
to the amendment SA 2170 proposed by Mr. Daschle to the bill (H.R. 10) 
to provide for pension reform, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place in the Amendment, insert the 
     following:

     SEC.   . ADVANCED ACCELERATOR APPLICATIONS PROGRAM.

       (a) Establishment of Program.--The Secretary shall 
     establish a program to be known as the ``Advanced Accelerator 
     Applications Program''.
       (b) Mission.--The mission of the program is research, 
     development and demonstration of comprehensive spent fuel 
     management strategies, which emphasize avoidance of 
     proliferation issues and have minimal environmental impact, 
     along with reasonable economic prospects that include 
     efficient utilization of the energy resource of spent nuclear 
     fuel and of repositories for the final waste products.
       (c) Goals.--The Office of Nuclear Energy, Science, and 
     Technology of the Department of Energy, called the Office in 
     this section, shall develop goals for the overall program 
     that lead to final waste forms derived from spent nuclear 
     fuel that significantly decrease the long-term toxicity to 
     levels well below that of the original spent fuel. Secondary 
     goals may be developed by the Office to efficiently utilize 
     resources developed within this program, such as production 
     of radio isotopes for medical applications and production of 
     tritium for defense missions.
       (d) Administration.--The program shall be administered by 
     the Office--
       (1) in consultation with the Office of Civilian Radioactive 
     Waste Management, for all activities relating to the impact 
     of waste transmutation on repository requirements of 
     transmutation or reprocessing of spent fuel; and
       (2) in consultation with the National Nuclear Security 
     Administration, for any activities related to tritium 
     production.
       (e) Participation.--The Office shall encourage 
     participation of international collaborators, industrial 
     partners, national laboratories, and universities.
       (f) Program.--The Office shall pursue research, development 
     and demonstration programs consistent with the goals of the 
     program. The program shall include evaluation of strategies 
     that involve combinations of current or innovative reactor 
     designs and/or accelerator-driven facilities.
       (g) Facilities.--The Program shall utilize existing 
     facilities, either domestic or international, whenever 
     possible, and develop plans as required for new facilities 
     required to demonstrate key aspects of a final system.
       (h) Additional Goals.--The Secretary is empowered to add 
     additional goals to the program that increase the efficient 
     utilization of the resources required for the primary 
     mission. Production of tritium by accelerator-based systems 
     may be one of these additional goals.
       (i) Authorization of Appropriations.--From amounts 
     authorized under section 4401, there are authorized to be 
     appropriated $70,000,000 in fiscal year 2002 and such sums as 
     are required in subsequent years.

                          ____________________