[Congressional Record Volume 148, Number 18 (Wednesday, February 27, 2002)]
[Senate]
[Pages S1262-S1320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      UNANIMOUS CONSENT AGREEMENT--AMENDMENT NO. 2917, AS MODIFIED

  Mr. REID. Mr. President, I ask unanimous consent that amendment No. 
2917 be modified with the changes at the desk, notwithstanding the 
pendency of S. 517; that upon modification, the amendment be printed as 
a Senate document.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment, as modified, is as follows:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Energy Policy Act of 2002''.

     SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.

   DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

                     TITLE I--REGIONAL COORDINATION

Sec. 101. Policy on regional coordination.
Sec. 102. Federal support for regional coordination.

                         TITLE II--ELECTRICITY

            Subtitle A--Amendments to the Federal Power Act

Sec. 201. Definitions.
Sec. 202. Electric utility mergers.
Sec. 203. Market-based rates.
Sec. 204. Refund effective date.
Sec. 205. Transmission interconnections.
Sec. 206. Open access transmission by certain utilities.
Sec. 207. Electric reliability standards.
Sec. 208. Market transparency rules.
Sec. 209. Access to transmission by intermittent generators.
Sec. 210. Enforcement.

    Subtitle B--Amendments to the Public Utility Holding Company Act

Sec. 221. Short title.
Sec. 222. Definitions.
Sec. 223. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 224. Federal access to books and records.
Sec. 225. State access to books and records.
Sec. 226. Exemption authority.
Sec. 227. Affiliate transactions.
Sec. 228. Applicability.
Sec. 229. Effect on other regulations.
Sec. 230. Enforcement.
Sec. 231. Savings provisions.
Sec. 232. Implementation.
Sec. 233. Transfer of resources.
Sec. 234. Inter-agency review of competition in the wholesale and 
              retail markets for electric energy.
Sec. 235. GAO study on implementation.
Sec. 236. Effective date.
Sec. 237. Authorization of appropriations.
Sec. 238. Conforming amendments to the Federal Power Act.

Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

Sec. 241. Real-time pricing standard.
Sec. 242. Adoption of additional standards.
Sec. 243. Technical assistance.
Sec. 244. Cogeneration and small power production purchase and sale 
              requirements.
Sec. 245. Net metering.

                    Subtitle D--Consumer Protections

Sec. 251. Information disclosure.
Sec. 252. Consumer privacy.
Sec. 253. Unfair trade practices.
Sec. 254. Applicable procedures.
Sec. 255. Federal Trade Commission enforcement.
Sec. 256. State authority.
Sec. 257. Application of subtitle.
Sec. 258. Definitions.

       Subtitle E--Renewable Energy and Rural Construction Grants

Sec. 261. Renewable energy production incentive.
Sec. 262. Assessment of renewable energy resources.
Sec. 263. Federal purchase requirement.
Sec. 264. Rural construction grants.
Sec. 265. Renewable portfolio standard.
Sec. 266. Renewable energy on Federal land.

                  TITLE III--HYDROELECTRIC RELICENSING

Sec. 301. Alternative mandatory conditions and fishways.
Sec. 302. Charges for tribal lands.
Sec. 303. Disposition of hydroelectric charges.
Sec. 304. Annual licenses.
Sec. 305. Enforcement.
Sec. 306. Establishment of hydroelectric relicensing procedures.
Sec. 307. Relicensing study.
Sec. 308. Data collection procedures.

                        TITLE IV--INDIAN ENERGY

Sec. 401. Comprehensive Indian energy program.
Sec. 402. Office of Indian Energy Policy and Programs.
Sec. 403. Conforming amendments.
Sec. 404. Siting energy facilities on tribal lands.
Sec. 405. Indian Mineral Development Act review.
Sec. 406. Renewable energy study.
Sec. 407. Federal Power Marketing Administrations.
Sec. 408. Feasibility study of combined wind and hydropower 
              demonstration project.

                         TITLE V--NUCLEAR POWER

             Subtitle A--Price-Anderson Act Reauthorization

Sec. 501. Short title.
Sec. 502. Extension of Department of Energy indemnification authority.
Sec. 503. Department of Energy liability limit.
Sec. 504. Incidents outside the United States.
Sec. 505. Reports.
Sec. 506. Inflation adjustment.
Sec. 507. Civil penalties.
Sec. 508. Effective date.

                  Subtitle B--Miscellaneous Provisions

Sec. 511. Uranium sales.

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Sec. 512. Reauthorization of thorium reimbursement.
Sec. 513. Fast Flux Test Facility.

     DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE VI--OIL AND GAS PRODUCTION

Sec. 601. Permanent authority to operate the Strategic Petroleum 
              Reserve.
Sec. 602. Federal onshore leasing programs for oil and gas.
Sec. 603. Oil and gas lease acreage limitations.
Sec. 604. Orphaned and abandoned wells on Federal lands.
Sec. 605. Orphaned and abandoned oil and gas well program.
Sec. 606. Offshore development.
Sec. 607. Coalbed methane study.
Sec. 608. Fiscal policies to maximize recovery of domestic oil and gas 
              resources.
Sec. 609. Strategic Petroleum Reserve.

                    TITLE VII--NATURAL GAS PIPELINES

                Subtitle A--Alaska Natural Gas Pipeline

Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purposes.
Sec. 704. Issuance of certificate of public convenience and necessity.
Sec. 705. Environmental reviews.
Sec. 706. Federal coordinator.
Sec. 707. Judicial review.
Sec. 708. Loan guarantee.
Sec. 709. Study of alternative means of construction.
Sec. 710. Savings clause.
Sec. 711. Clarification of authority to amend terms and conditions to 
              meet current project requirements.
Sec. 712. Definitions.
Sec. 713. Sense of the Senate.

                    Subtitle B--Operating Pipelines

Sec. 721. Application of the Historic Preservation Act to operating 
              pipelines.
Sec. 722. Environmental review and permitting of natural gas pipeline 
              projects.

    DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                     TITLE VIII--FUELS AND VEHICLES

             Subtitle A--CAFE Standards and Related Matters

Sec. 801. Average fuel economy standards for passenger automobiles and 
              light trucks.
Sec. 802. Fuel economy truth in testing.
Sec. 803. Ensuring safety of passenger automobiles and light trucks.
Sec. 804. High occupancy vehicle exception.
Sec. 805. Credit trading program.
Sec. 806. Green labels for fuel economy.
Sec. 807. Light truck challenge.
Sec. 808. Secretary of Transportation to certify benefits.
Sec. 809. Department of Transportation engineering award program.
Sec. 810. Cooperative technology agreements.

              Subtitle B--Alternative and Renewable Fuels

Sec. 811. Increased use of alternative fuels by federal fleets.
Sec. 812. Exception to HOV passenger requirements for alternative fuel 
              vehicles.
Sec. 813. Data collection.
Sec. 814. Green school bus pilot program.
Sec. 815. Fuel cell bus development and demonstration program.
Sec. 816. Authorization of appropriations.
Sec. 817. Biodiesel fuel use credits.
Sec. 818. Neighborhood electric vehciles.

            Subtitle C--Additional Fuel Efficiency Measures

Sec. 821. Fuel efficiency of the federal fleet of automobiles.
Sec. 822. Assistance for State programs to retire fuel-inefficient 
              motor vehicles.
Sec. 823. Idling reduction systems in heavy duty vehicles.

   TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

      Subtitle A--Low Income Assistance and State Energy Programs

Sec. 901. Increased funding for LIHEAP, weatherization assistance, and 
              State energy grants.
Sec. 902. State energy programs.
Sec. 903. Energy efficient schools.
Sec. 904. Low income community energy efficiency pilot program.

                 Subtitle B--Federal Energy Efficiency

Sec. 911. Energy management requirements.
Sec. 912. Energy use measurement and accountability.
Sec. 913. Federal building performance standards.
Sec. 914. Procurement of energy efficient products.
Sec. 915. Repeal of energy savings performance contract sunset.
Sec. 916. Energy savings performance contract definitions.
Sec. 917. Review of energy savings performance contract program.
Sec. 918. Federal Energy Bank.
Sec. 919. Energy and water saving measures in Congressional buildings.

        Subtitle C--Industrial Efficiency and Consumer Products

Sec. 921. Voluntary commitments to reduce industrial energy intensity.
Sec. 922. Authority to set standards for commercial products.
Sec. 923. Additional definitions.
Sec. 924. Additional test procedures.
Sec. 925. Energy labeling.
Sec. 926. Energy Star Program.
Sec. 927. Energy conservation standards for central air conditioners 
              and heat pumps.
Sec. 928. Energy conservation standards for additional consumer and 
              commercial products.
Sec. 929. Consumer education on energy efficiency benefits of air 
              conditioning, heating, and ventilation maintenance.

                     Subtitle D--Housing Efficiency

Sec. 931. Capacity building for energy efficient, affordable housing.
Sec. 932. Increase of CDBG public services cap for energy conservation 
              and efficiency activities.
Sec. 933. FHA mortgage insurance incentives for energy efficient 
              housing.
Sec. 934. Public housing capital fund.
Sec. 935. Grants for energy-conserving improvements for assisted 
              housing.
Sec. 936. North American Development Bank.

   DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

               TITLE X--CLIMATE CHANGE POLICY FORMULATION

                       Subtitle A--Global Warming

Sec. 1001. Sense of Congress on global warming.

                  Subtitle B--Climate Change Strategy

Sec. 1011. Short title.
Sec. 1012. Findings.
Sec. 1013. Purpose.
Sec. 1014. Definitions.
Sec. 1015. United States Climate Change Response Strategy.
Sec. 1016. National Office of Climate Change Response of the Executive 
              Office of the President.
Sec. 1017. Technology innovation program implemented through the Office 
              of Climate Change Technology of the Department of Energy.
Sec. 1018. Additional offices and activities.
Sec. 1019. United States Climate Change Response Strategy Review Board.
Sec. 1020. Authorization of appropriations.

               Subtitle C--Science and Technology Policy

Sec. 1031. Global climate change in the Office of Science and 
              Technology Policy.
Sec. 1032. Establishment of Associate Director for Global Climate 
              Change.

                  Subtitle D--Miscellaneous Provisions

Sec. 1041. Additional information for regulatory review.
Sec. 1042. Greenhouse gas emissions from federal facilities.

               TITLE XI--NATIONAL GREENHOUSE GAS DATABASE

Sec. 1101. Purpose.
Sec. 1102. Definitions.
Sec. 1103. Establishment of memorandum of agreement.
Sec. 1104. National Greenhouse Gas Database.
Sec. 1105. Report on statutory changes and harmonization.
Sec. 1106. Measurement and verification.
Sec. 1107. Independent review.
Sec. 1108. Authorization of appropriations.

       DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING

          TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

Sec. 1201. Short title.
Sec. 1202. Findings.
Sec. 1203. Definitions.
Sec. 1204. Construction with other laws.

                     Subtitle A--Energy Efficiency

Sec. 1211. Enhanced energy efficiency research and development.
Sec. 1212. Energy efficiency science initiative.
Sec. 1213. Next generation lighting initiative.
Sec. 1214. Railroad efficiency.

                      Subtitle B--Renewable Energy

Sec. 1221. Enhanced renewable energy research and development.
Sec. 1222. Bioenergy programs.
Sec. 1223. Hydrogen research and development.

                       Subtitle C--Fossil Energy

Sec. 1231. Enhanced fossil energy research and development.
Sec. 1232. Power plant improvement initiative.
Sec. 1233. Research and development for advanced safe and efficient 
              coal mining technologies.
Sec. 1234. Ultra-deepwater and unconventional resource exploration and 
              production technologies.
Sec. 1235. Research and development for new natural gas transportation 
              technologies.
Sec. 1236. Authorization of appropriations for Office of Arctic Energy.

                       Subtitle D--Nuclear Energy

Sec. 1241. Enhanced nuclear energy research and development.
Sec. 1242. University nuclear science and engineering support.
Sec. 1243. Nuclear energy research initiative.

[[Page S1264]]

Sec. 1244. Nuclear energy plant optimization program.
Sec. 1245. Nuclear energy technology development program.

                 Subtitle E--Fundamental Energy Science

Sec. 1251. Enhanced programs in fundamental energy science.
Sec. 1252. Nanoscale science and engineering research.
Sec. 1253. Advanced scientific computing for energy missions.
Sec. 1254. Fusion energy sciences program and planning.

        Subtitle F--Energy, Safety, and Environmental Protection

Sec. 1261. Critical energy infrastructure protection research and 
              development.
Sec. 1262. Pipeline integrity, safety, and reliability research and 
              development.
Sec. 1263. Research and demonstration for remediation of groundwater 
              from energy activities.--

          TITLE XIII--CLIMATE CHANGE RESEARCH AND DEVELOPMENT

               Subtitle A--Department of Energy Programs

Sec. 1301. Program goals.
Sec. 1302. Department of Energy global change science research.
Sec. 1303. Amendments to the Federal Nonnuclear Research and 
              Development Act of 1974.

             Subtitle B--Department of Agriculture Programs

Sec. 1311. Carbon sequestration basic and applied research.
Sec. 1312. Carbon sequestration demonstration projects and outreach.

          Subtitle C--Clean Energy Technology Exports Program

Sec. 1321. Clean energy technology exports program.
Sec. 1322. International energy technology deployment program.

           Subtitle D--Climate Change Science and Information

      PART I--AMENDMENTS TO THE GLOBAL CHANGE RESEARCH ACT OF 1990

Sec. 1331. Amendment of Global Change Research Act of 1990.
Sec. 1332. Changes in definitions.
Sec. 1333. Change in committee name.
Sec. 1334. Change in national global change research plan.
Sec. 1335. Integrated Program Office.

             PART II--NATIONAL CLIMATE SERVICES MONITORING

Sec. 1341. Amendment of National Climate Program Act.
Sec. 1342. Changes in findings.
Sec. 1343. Tools for regional planning.
Sec. 1344. Authorization of appropriations.
Sec. 1345. National Climate Service Plan.
Sec. 1346. International Pacific Research and Cooperation.
Sec. 1347. Reporting on trends.

              PART III--OCEAN AND COASTAL OBSERVING SYSTEM

Sec. 1351. Ocean and coastal observing system.
Sec. 1352. Authorization of appropriations.

                 Subtitle E--Climate Change Technology

Sec. 1361. NIST greenhouse gas functions.
Sec. 1362. Development of new measurement technologies.
Sec. 1363. Enhanced environmental measurements and standards.
Sec. 1364. Technology development and diffusion.
Sec. 1365. Authorization of appropriations.

         Subtitle F--Climate Adaptation and Hazards Prevention

                   PART I--ASSESSMENT AND ADAPTATION

Sec. 1371. Regional climate assessment and adaptation program.
Sec. 1372. Coastal vulnerability and adaptation.

            PART II--FORECASTING AND PLANNING PILOT PROGRAMS

Sec. 1381. Remote sensing pilot projects.
Sec. 1382. Database establishment.
Sec. 1383. Definitions.
Sec. 1384. Authorization of appropriations.

      TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

Sec. 1401. Definitions.
Sec. 1402. Availability of funds.
Sec. 1403. Cost sharing.
Sec. 1404. Merit review of proposals.
Sec. 1405. External technical review of departmental programs.
Sec. 1406. Improved coordination and management of civilian science and 
              technology programs.
Sec. 1407. Improved coordination of technology transfer activities.
Sec. 1408. Technology infrastructure program.
Sec. 1409. Small business advocacy and assistance.
Sec. 1410. Other transactions.
Sec. 1411. Mobility of scientific and technical personnel.
Sec. 1412. National Academy of Sciences report.
Sec. 1413. Report on technology readiness and barriers to technology 
              transfer.

                    TITLE XV--PERSONNEL AND TRAINING

Sec. 1501. Workforce trends and traineeship grants.
Sec. 1502. Postdoctoral and senior research fellowships in energy 
              research.
Sec. 1503. Training guidelines for electric energy industry personnel.
Sec. 1504. National Center on Energy Management and Building 
              Technologies.
Sec. 1505. Improved access to energy-related scientific and technical 
              careers.

             DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES

                    TITLE XVI--TECHNOLOGY ASSESSMENT

Sec. 1601. National Science and Technology Assessment Service.

                          TITLE XVII--STUDIES

Sec. 1701. Regulatory reviews.
Sec. 1702. Assessment of dependence of Hawaii on oil.
Sec. 1703. Study of siting an electric transmission system on Amtrak 
              right-of-way.

               DIVISION G--ENERGY INFRASTRUCTURE SECURITY

              TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE

               Subtitle A--Department of Energy Programs

Sec. 1801. Definitions.
Sec. 1802. Role of the Department of Energy.
Sec. 1803. Critical energy infrastructure programs.
Sec. 1804. Advisory Committee on Energy Infrastructure Security.
Sec. 1805. Best practices and standards for energy infrastructure 
              security.

            Subtitle B--Department of the Interior Programs

Sec. 1811. Outer Continental Shelf energy infrastructure security.

   DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

                     TITLE I--REGIONAL COORDINATION

     SEC. 101. POLICY ON REGIONAL COORDINATION.

       (a) Statement of Policy.--It is the policy of the Federal 
     Government to encourage States to coordinate, on a regional 
     basis, State energy policies to provide reliable and 
     affordable energy services to the public while minimizing the 
     impact of providing energy services on communities and the 
     environment.
       (b) Definition of Energy Services.--For purposes of this 
     section, the term ``energy services'' means--
       (1) the generation or transmission of electric energy,
       (2) the transportation, storage, and distribution of crude 
     oil, residual fuel oil, refined petroleum product, or natural 
     gas, or
       (3) the reduction in load through increased efficiency, 
     conservation, or load control measures.

     SEC. 102. FEDERAL SUPPORT FOR REGIONAL COORDINATION.

       (a) Technical Assistance.--The Secretary of Energy shall 
     provide technical assistance to States and regional 
     organizations formed by two or more States to assist them in 
     coordinating their energy policies on a regional basis. Such 
     technical assistance may include assistance in--
       (1) assessing future supply availability and demand 
     requirements,
       (2) planning and siting additional energy infrastructure, 
     including generating facilities, electric transmission 
     facilities, pipelines, refineries, and distributed generation 
     facilities to meet regional needs,
       (3) identifying and resolving problems in distribution 
     networks,
       (4) developing plans to respond to surge demand or 
     emergency needs, and
       (5) developing renewable energy, energy efficiency, 
     conservation, and load control programs.
       (b) Annual Conference on Regional Energy Coordination.--
       (1) Annual conference.--The Secretary of Energy shall 
     convene an annual conference to promote regional coordination 
     on energy policy and infrastructure issues.
       (2) Participation.-- The Secretary of Energy shall invite 
     appropriate representatives of federal, state, and regional 
     energy organizations, and other interested parties.
       (3) State and federal agency cooperation.--The Secretary of 
     Energy shall consult and cooperate with State and regional 
     energy organizations, the Secretary of the Interior, the 
     Secretary of Agriculture, the Secretary of Commerce, the 
     Secretary of the Treasury, the Chairman of the Federal Energy 
     Regulatory Commission, the Administrator of the Environmental 
     Protection Agency, and the Chairman of the Council on 
     Environmental Quality in the planning and conduct of the 
     conference.
       (4) Agenda.--The Secretary of Energy, in consultation with 
     the officials identified in paragraph (3) and participants 
     identified in paragraph (2), shall establish an agenda for 
     each conference that promotes regional coordination on energy 
     policy and infrastructure issues.
       (5) Recommendations.--Not later than 60 days after the 
     conclusion of each annual conference, the Secretary of Energy 
     shall report to the President and the Congress 
     recommendations arising out of the conference that may 
     improve--
       (A) regional coordination on energy policy and 
     infrastructure issues, and
       (B) federal support for regional coordination.

                         TITLE II--ELECTRICITY

            Subtitle A--Amendments to the Federal Power Act

     SEC. 201. DEFINITIONS.

       (a) Definition of Electric Utility.--Section 3(22) of the 
     Federal Power Act (16 U.S.C. 796(22)) is amended to read as 
     follows:
       ``(22) `electric utility' means any person or Federal or 
     State agency (including any municipality) that sells electric 
     energy; such

[[Page S1265]]

     term includes the Tennessee Valley Authority and each Federal 
     power marketing agency.
       (b) Definition of Transmitting Utility.--Section 3(23) of 
     the Federal Power Act (16 U.S.C. 796(23))is amended to read 
     as follows:
       ``(23) Transmitting utility.--The term `transmitting 
     utility' means an entity (including any entity described in 
     section 201(f)) that owns or operates facilities used for the 
     transmission of electric energy in--
       ``(A) interstate commerce; or
       ``(B) for the sale of electric energy at wholesale.''.

     SEC. 202. ELECTRIC UTILITY MERGERS.

       Section 203(a) of the Federal Power Act (16 U.S.C. 824b) is 
     amended to read as follows:
       (a)(1) No public utility shall, without first having 
     secured an order of the Commission authorizing it to do so--
       ``(A) sell, lease, or otherwise dispose of the whole of its 
     facilities subject to the jurisdiction of the Commission, or 
     any part thereof of a value in excess of $1,000,000,
       ``(B) merge or consolidate, directly or indirectly, such 
     facilities or any part thereof with the facilities of any 
     other person, by any means whatsoever,
       (C) purchase, acquire, or take any security of any other 
     public utility, or
       (D) purchase, lease, or otherwise acquire existing 
     facilities for the generation of electric energy or for the 
     production or transportation of natural gas.
       ``(2) No holding company in a holding company system that 
     includes a transmitting utility or an electric utility 
     company shall purchase, acquire, or take any security of, or, 
     by any means whatsoever, directly or indirectly, merge or 
     consolidate with a transmitting utility, an electric utility 
     company, a gas utility company, or a holding company in a 
     holding company system that includes a transmitting utility, 
     an electric utility company, or a gas utility company, 
     without first having secured an order of the Commission 
     authorizing it to do so.
       ``(3) Upon application for such approval the Commission 
     shall give reasonable notice in writing to the Governor and 
     State commission of each of the States in which the physical 
     property affected, or any part thereof, is situated, and to 
     such other persons as it may deem advisable.
       ``(4) After notice and opportunity for hearing, if the 
     Commission finds that the proposed disposition, 
     consolidation, acquisition, or control will be consistent 
     with the public interest, it shall approve the same.
       ``(5) For purposes of this subsection, the terms `electric 
     utility company', `gas utility company', `holding company', 
     and `holding company system' have the meaning given those 
     terms in the Public Utility Holding Company Act of 2002.
       ``(6) Notwithstanding section 201(b)(1), facilities used 
     for the generation of electric energy shall be subject to the 
     jurisdiction of the Commission for purposes of this 
     section.''.

     SEC. 203. MARKET-BASED RATES.

       (a) Approval of Market-Based Rates.--Section 205 of the 
     Federal Power Act (16 U.S.C. 824d) is amended by adding at 
     the end the following:
       ``(h) The Commission may determine whether a market-based 
     rate for the sale of electric energy subject to the 
     jurisdiction of the Commission is just and reasonable and not 
     unduly discriminatory or preferential. In making such 
     determination, the Commission shall consider--
       ``(1) whether the seller and its affiliates have, or have 
     adequately mitigated, market power in the generation and 
     transmission of electric energy;
       ``(2) whether the sale is made in a competitive market;
       ``(3) whether market mechanisms, such as power exchanges 
     and bid auctions, function adequately;
       ``(4) the effect of demand response mechanisms;
       ``(5) the effect of mechanisms or requirements intended to 
     ensure adequate reserve margins; and
       ``(6) other such considerations as the Commission may deem 
     to be appropriate and in the public interest.''.
       (b) Revocation of Market-Based Rates.--Section 206 of the 
     Federal Power Act (16 U.S.C. 824e) is amended by adding at 
     the end the following:
       ``(f) Whenever the Commission, after a hearing had upon its 
     own motion or upon complaint, finds that a rate charged by a 
     public utility authorized to charge a market-based rate under 
     section 205 is unjust, unreasonable, unduly discriminatory or 
     preferential, the Commission shall determine the just and 
     reasonable rate and fix the same by order in accordance with 
     this section, or order such other action as will, in the 
     judgment of the Commission, adequately ensure a just and 
     reasonable market-based rate.''.

     SEC. 204. REFUND EFFECTIVE DATE.

       Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) 
     is amended by--
       (1) striking ``60 days after the filing of such complaint 
     nor later than 5 months after the expiration of such 60-day 
     period'' in the second sentence and inserting ``on which the 
     complaint is filed''; and
       (2) striking ``60 days after the publication by the 
     Commission of notice of its intention to initiate such 
     proceeding nor later than 5 months after the expiration of 
     such 60-day period'' in the third sentence and inserting ``on 
     which the Commission publishes notice of its intention to 
     initiate such proceeding''.

     SEC. 205. TRANSMISSION INTERCONNECTIONS.

       Section 210 of the Federal Power Act (16 U.S.C. 824i) is 
     amended to read as follows:


                ``TRANSMISSION INTERCONNECTION AUTHORITY

       ``Sec. 210. (a)(1) The Commission shall, by rule, establish 
     technical standards and procedures for the interconnection of 
     facilities used for the generation of electric energy with 
     facilities used for the transmission of electric energy in 
     interstate commerce. The rule shall provide--
       ``(A) criteria to ensure that an interconnection will not 
     unreasonably impair the reliability of the transmission 
     system; and
       ``(B) criteria for the apportionment or reimbursement of 
     the costs of making the interconnection.
       ``(2) Notwithstanding section 201(f), a transmitting 
     utility shall interconnect its transmission facilities with 
     the generation facilities of a power producer upon the 
     application of the power producer if the power producer 
     complies with the requirements of the rule.
       ``(b) Upon the application of a power producer or its own 
     motion, the Commission may, after giving notice and an 
     opportunity for a hearing to any entity whose interest may be 
     affected, issue an order requiring--
       ``(1) the physical connection of facilities used for the 
     generation of electric energy with facilities used for the 
     transmission of electric energy in interstate commerce;
       ``(2) such action as may be necessary to make effective any 
     such physical connection;
       ``(3) such sale or exchange of electric energy or other 
     coordination, as may be necessary to carry out the purposes 
     of such order; or
       ``(4) such increase in transmission capacity as may be 
     necessary to carry out the purposes of such order.
       ``(c) As used in this section, the term `power producer' 
     means an entity that owns or operates a facility used for the 
     generation of electric energy.''.

     SEC. 206. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.

       Part II of the Federal Power Act is further amended by 
     inserting after section 211 the following:


          ``OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES

       ``Sec. 211A. (1) Subject to section 212(h), the Commission 
     may, by rule or order, require an unregulated transmitting 
     utility to provide transmission services--
       ``(A) at rates that are comparable to those that the 
     unregulated transmitting utility charges itself, and
       ``(B) on terms and conditions (not relating to rates) that 
     are comparable to those under Commission rules that require 
     public utilities to offer open access transmission services 
     and that are not unduly discriminatory or preferential.
       ``(2) The Commission shall exempt from any rule or order 
     under this subsection any unregulated transmitting utility 
     that--
       ``(A) sells no more than 4,000,000 megawatt hours of 
     electricity per year;
       ``(B) does not own or operate any transmission facilities 
     that are necessary for operating an interconnected 
     transmission system (or any portion thereof), or
       ``(C) meets other criteria the Commission determines to be 
     in the public interest.
       ``(3) The rate changing procedures applicable to public 
     utilities under subsections (c) and (d) of section 205 are 
     applicable to unregulated transmitting utilities for purposes 
     of this section.
       ``(4) In exercising its authority under paragraph (1), the 
     Commission may remand transmission rates to an unregulated 
     transmitting utility for review and revision where necessary 
     to meet the requirements of paragraph (1).
       ``(5) The provision of transmission services under 
     paragraph (1) does not preclude a request for transmission 
     services under section 211.
       ``(6) The Commission may not require a State or 
     municipality to take action under this section that 
     constitutes a private business use for purposes of section 
     141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
       ``(7) For purposes of this subsection, the term 
     `unregulated transmitting utility' means an entity that--
       ``(A) owns or operates facilities used for the transmission 
     of electric energy in interstate commerce, and
       ``(B) is either an entity described in section 201(f) or a 
     rural electric cooperative.''.

     SEC. 207. ELECTRIC RELIABILITY STANDARDS.

       Part II of the Federal Power Act is further amended by 
     adding at the end the following:

     ``SEC. 215. ELECTRIC RELIABILITY STANDARDS.

       ``(a) Duty of the Commission.--The Commission shall 
     establish and enforce one or more systems of mandatory 
     electric reliability standards to ensure the reliable 
     operation of the interstate transmission system, which shall 
     be applicable to--
       ``(1) any entity that sells, purchases, or transmits, 
     electric energy using the interstate transmission system, and
       ``(2) any entity that owns, operates, or maintains 
     facilities that are a part of the interstate transmission 
     system.
       ``(b) Standards.--In carrying out its responsibility under 
     subsection (a), the Commission may adopt and enforce, in 
     whole or in part, a reliability standard proposed or adopted 
     by the North American Electric Reliability Council, a 
     regional reliability council, a similar organization, or a 
     State regulatory authority.
       ``(c) Enforcement.--In carrying out its responsibility 
     under subsection (a), the Commission may certify one or more 
     self-regulating reliability organizations (which may

[[Page S1266]]

     include the North American Electric Reliability Council, one 
     or more regional reliability councils, one or more regional 
     transmission organizations, or any similar organization) to 
     ensure the reliable operation of the interstate transmission 
     system and to monitor and enforce compliance of their members 
     with electric reliability standards adopted under this 
     section.
       ``(d) Cooperation With Canada and Mexico.--The Commission 
     shall ensure that any self-regulating reliability 
     organization certified under this section, one or more of 
     whose members are interconnected with transmitting utilities 
     in Canada or the Republic of Mexico, provide for the 
     participation of such utilities in the governance of the 
     organization and the adoption of reliability standards. 
     Nothing in this section shall be construed to extend the 
     jurisdiction of the Commission outside of the United States.
       ``(e) Preservation of State Authority.--Nothing in this 
     section shall be construed to preempt the authority of any 
     State to take action to ensure the safety, adequacy, and 
     reliability of local distribution facilities service within 
     the State, except where the exercise of such authority 
     unreasonably impairs the reliability of the interstate 
     transmission system.
       ``(f) Definitions.--For purposes of this section:
       ``(1) The term `interstate transmission system' means the 
     network of facilities used for the transmission of electric 
     energy in interstate commerce.
       ``(2) The term `reliability' means the ability of the 
     interstate transmission system to transmit sufficient 
     electric energy to supply the aggregate electric demand and 
     energy requirements of electricity consumers at all times and 
     the ability of the system to withstand sudden 
     disturbances.''.

     SEC. 208. MARKET TRANSPARENCY RULES.

       Part II of the Federal Power Act is further amended by 
     adding at the end the following:

     ``SEC. 216. MARKET TRANSPARENCY RULES.

       ``(a) Commission Rules.--Not later than 180 days after the 
     date of enactment of this section, the Commission shall issue 
     rules establishing an electronic information system to 
     provide information about the availability and price of 
     wholesale electric energy and transmission services to the 
     Commission, state commissions, buyers and sellers of 
     wholesale electric energy, users of transmission services, 
     and the public on a timely basis.
       ``(b) Information Required.--The Commission shall require--
       ``(1) each regional transmission organization to provide 
     statistical information about the available capacity and 
     capacity constraints of transmission facilities operated by 
     the organization; and
       ``(2) each broker, exchange, or other market-making entity 
     that matches offers to sell and offers to buy wholesale 
     electric energy in interstate commerce to provide statistical 
     information about the amount and sale price of sales of 
     electric energy at wholesale in interstate commerce it 
     transacts.
       ``(c) Timely Basis.--The Commission shall require the 
     information required under subsection (b) to be posted on the 
     Internet as soon as practicable and updated as frequently as 
     practicable.
       ``(d) Protection of Sensitive Information.--The Commission 
     shall exempt from disclosure commercial or financial 
     information that the Commission, by rule or order, determines 
     to be privileged, confidential, or otherwise sensitive.''.

     SEC. 209. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

       Part II of the Federal Power Act is further amended by 
     adding at the end the following:

     ``SEC. 217. ACCESS TO TRANSMISSION BY INTERMITTENT 
                   GENERATORS.

       ``(a) Fair treatment of Intermittent Generators.--The 
     Commission shall ensure that all transmitting utilities 
     provide transmission service to intermittent generators in a 
     manner that does not penalize such generators, directly or 
     indirectly, for characteristics that are--
       ``(1) inherent to intermittent energy resources; and
       ``(2) are beyond the control of such generators.
       ``(b) Policies.--The Commission shall ensure that the 
     requirement in subsection (a) is met by adopting such 
     policies as it deems appropriate which shall include, but not 
     be limited to, the following:
       ``(1) Subject to the sole exception set forth in paragraph 
     (2), the Commission shall ensure that the rates transmitting 
     utilities charge intermittent generator customers for 
     transmission services do not directly or indirectly penalize 
     intermittent generator customers for scheduling deviations.
       ``(2) The Commission may exempt a transmitting utility from 
     the requirement set forth in subsection (b) if the 
     transmitting utility demonstrates that scheduling deviations 
     by its intermittent generator customers are likely to have a 
     substantial adverse impact on the reliability of the 
     transmitting utility's system. For purposes of administering 
     this exemption, there shall be a rebuttable presumption of no 
     adverse impact where intermittent generators collectively 
     constitute 20 percent or less of total generation 
     interconnected with transmitting utility's system and using 
     transmission services provided by transmitting utility.
       ``(3) The Commission shall ensure that to the extent any 
     transmission charges recovering the transmitting utility's 
     embedded costs are assessed to intermittent generators, they 
     are assessed to such generators on the basis of kilowatt-
     hours generated rather than the intermittent generator's 
     capacity.
       ``(4) The Commission shall require transmitting utilities 
     to offer to intermittent generators, and may require 
     transmitting utilities to offer to all transmission 
     customers, access to nonfirm transmission service pursuant to 
     long-term contracts of up to ten years duration under 
     reasonable terms and conditions.
       ``(c) Definitions.--As used in this section:
       ``(1) The term `intermittent generator' means a facility 
     that generates electricity using wind or solar energy and no 
     other energy source.
       ``(2) The term `nonfirm transmission service' means 
     transmission service provided on an `as available' basis.
       ``(3) The term `scheduling deviation' means delivery of 
     more or less energy than has previously been forecast in a 
     schedule submitted by an intermittent generator to a control 
     area operator or transmitting utility.''.

     SEC. 210. ENFORCEMENT.

       (a) Complaints.--Section 306 of the Federal Power Act (16 
     U.S.C. 825e) is amended by--
       (1) inserting ``electric utility,'' after ``Any person,''; 
     and
       (2) inserting ``transmitting utility,'' after ``licensee'' 
     each place it appears.
       (b) Investigations.--Section 307(a) of the Federal Power 
     Act (16 U.S.C. 825f(a)) is amended by inserting ``or 
     transmitting utility'' after ``any person'' in the first 
     sentence.
       (c) Review of Commission Orders.--Section 313(a) of the 
     Federal Power Act (16 U.S.C. 8251) is amended by inserting 
     ``electric utility,'' after ``Any person,'' in the first 
     sentence.
       (d) Criminal Penalties.--Section 316(c) of the Federal 
     Power Act (16 U.S.C. 825o(c)) is repealed.
       (e) Civil Penalties.--Section 316A of the Federal Power Act 
     (16 U.S.C. 825o-1) is amended by striking ``section 211, 212, 
     213, or 214'' each place it appears and inserting ``Part 
     II''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2002''.

     SEC. 222. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``affiliate'' of a company means any company, 
     5 percent or more of the outstanding voting securities of 
     which are owned, controlled, or held with power to vote, 
     directly or indirectly, by such company.
       (2) The term ``associate company'' of a company means any 
     company in the same holding company system with such company.
       (3) The term ``Commission'' means the Federal Energy 
     Regulatory Commission.
       (4) The term ``company'' means a corporation, partnership, 
     association, joint stock company, business trust, or any 
     organized group of persons, whether incorporated or not, or a 
     receiver, trustee, or other liquidating agent of any of the 
     foregoing.
       (5) The term ``electric utility company'' means any company 
     that owns or operates facilities used for the generation, 
     transmission, or distribution of electric energy for sale.
       (6) The terms ``exempt wholesale generator'' and ``foreign 
     utility company'' have the same meanings as in sections 32 
     and 33, respectively, of the Public Utility Holding Company 
     Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as those sections 
     existed on the day before the effective date of this 
     subtitle.
       (7) The term ``gas utility company'' means any company that 
     owns or operates facilities used for distribution at retail 
     (other than the distribution only in enclosed portable 
     containers or distribution to tenants or employees of the 
     company operating such facilities for their own use and not 
     for resale) of natural or manufactured gas for heat, light, 
     or power.
       (8) The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public utility company or 
     of a holding company of any public utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with one or more persons) such a controlling 
     influence over the management or policies of any public 
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) The term ``holding company system'' means a holding 
     company, together with its subsidiary companies.
       (10) The term ``jurisdictional rates'' means rates 
     established by the Commission for the transmission of 
     electric energy in interstate commerce, the sale of electric 
     energy at wholesale in interstate commerce, the 
     transportation of natural gas in interstate commerce, and the 
     sale in interstate commerce of natural gas for resale for 
     ultimate public consumption for domestic, commercial, 
     industrial, or any other use.
       (11) The term ``natural gas company'' means a person 
     engaged in the transportation of natural gas in interstate 
     commerce

[[Page S1267]]

     or the sale of such gas in interstate commerce for resale.
       (12) The term ``person'' means an individual or company.
       (13) The term ``public utility'' means any person who owns 
     or operates facilities used for transmission of electric 
     energy in interstate commerce or sales of electric energy at 
     wholesale in interstate commerce.
       (14) The term ``public utility company'' means an electric 
     utility company or a gas utility company.
       (15) The term ``State commission'' means any commission, 
     board, agency, or officer, by whatever name designated, of a 
     State, municipality, or other political subdivision of a 
     State that, under the laws of such State, has jurisdiction to 
     regulate public utility companies.
       (16) The term ``subsidiary company'' of a holding company 
     means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with one or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (17) The term ``voting security'' means any security 
     presently entitling the owner or holder thereof to vote in 
     the direction or management of the affairs of a company.

     SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 
                   1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 224. FEDERAL ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Each holding company and each associate 
     company thereof shall maintain, and shall make available to 
     the Commission, such books, accounts, memoranda, and other 
     records as the Commission deems to be relevant to costs 
     incurred by a public utility or natural gas company that is 
     an associate company of such holding company and necessary or 
     appropriate for the protection of utility customers with 
     respect to jurisdictional rates.
       (b) Affiliate Companies.--Each affiliate of a holding 
     company or of any subsidiary company of a holding company 
     shall maintain, and shall make available to the Commission, 
     such books, accounts, memoranda, and other records with 
     respect to any transaction with another affiliate, as the 
     Commission deems to be relevant to costs incurred by a public 
     utility or natural gas company that is an associate company 
     of such holding company and necessary or appropriate for the 
     protection of utility customers with respect to 
     jurisdictional rates.
       (c) Holding Company Systems.--The Commission may examine 
     the books, accounts, memoranda, and other records of any 
     company in a holding company system, or any affiliate 
     thereof, as the Commission deems to be relevant to costs 
     incurred by a public utility or natural gas company within 
     such holding company system and necessary or appropriate for 
     the protection of utility customers with respect to 
     jurisdictional rates.
       (d) Confidentiality.--No member, officer, or employee of 
     the Commission shall divulge any fact or information that may 
     come to his or her knowledge during the course of examination 
     of books, accounts, memoranda, or other records as provided 
     in this section, except as may be directed by the Commission 
     or by a court of competent jurisdiction.

     SEC. 225. STATE ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Upon the written request of a State 
     commission having jurisdiction to regulate a public utility 
     company in a holding company system, the holding company or 
     any associate company or affiliate thereof, other than such 
     public utility company, wherever located, shall produce for 
     inspection books, accounts, memoranda, and other records 
     that--
       (1) have been identified in reasonable detail by the State 
     commission;
       (2) the State commission deems are relevant to costs 
     incurred by such public utility company; and
       (3) are necessary for the effective discharge of the 
     responsibilities of the State commission with respect to such 
     proceeding.
       (b) Limitation.--Subsection (a) does not apply to any 
     person that is a holding company solely by reason of 
     ownership of one or more qualifying facilities under the 
     Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2601 et seq.).
       (c) Confidentiality of Information.--The production of 
     books, accounts, memoranda, and other records under 
     subsection (a) shall be subject to such terms and conditions 
     as may be necessary and appropriate to safeguard against 
     unwarranted disclosure to the public of any trade secrets or 
     sensitive commercial information.
       (d) Effect on State Law.--Nothing in this section shall 
     preempt applicable State law concerning the provision of 
     books, accounts, memoranda, and other records, or in any way 
     limit the rights of any State to obtain books, accounts, 
     memoranda, and other records under any other Federal law, 
     contract, or otherwise.
       (e) Court Jurisdiction.--Any United States district court 
     located in the State in which the State commission referred 
     to in subsection (a) is located shall have jurisdiction to 
     enforce compliance with this section.

     SEC. 226. EXEMPTION AUTHORITY.

       (a) Rulemaking.--Not later than 90 days after the effective 
     date of this subtitle, the Commission shall promulgate a 
     final rule to exempt from the requirements of section 224 any 
     person that is a holding company, solely with respect to one 
     or more--
       (1) qualifying facilities under the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
       (2) exempt wholesale generators; or
       (3) foreign utility companies.
       (b) Other Authority.--The Commission shall exempt a person 
     or transaction from the requirements of section 224, if, upon 
     application or upon the motion of the Commission--
       (1) the Commission finds that the books, accounts, 
     memoranda, and other records of any person are not relevant 
     to the jurisdictional rates of a public utility or natural 
     gas company; or
       (2) the Commission finds that any class of transactions is 
     not relevant to the jurisdictional rates of a public utility 
     or natural gas company.

     SEC. 227. AFFILIATE TRANSACTIONS.

       (a) Commission Authority Unaffected.--Nothing in this 
     subtitle shall limit the authority of the Commission under 
     the Federal Power Act (16 U.S.C. 791a et seq.) to require 
     that jurisdictional rates are just and reasonable, including 
     the ability to deny or approve the pass through of costs, the 
     prevention of cross-subsidization, and the promulgation of 
     such rules and regulations as are necessary or appropriate 
     for the protection of utility consumers.
       (b) Recovery of Costs.-- Nothing in this subtitle shall 
     preclude the Commission or a State commission from exercising 
     its jurisdiction under otherwise applicable law to determine 
     whether a public utility company, public utility, or natural 
     gas company may recover in rates any costs of an activity 
     performed by an associate company, or any costs of goods or 
     services acquired by such public utility company from an 
     associate company.

     SEC. 228. APPLICABILITY.

       Except as otherwise specifically provided in this subtitle, 
     no provision of this subtitle shall apply to, or be deemed to 
     include--
       (1) the United States;
       (2) a State or any political subdivision of a State;
       (3) any foreign governmental authority not operating in the 
     United States;
       (4) any agency, authority, or instrumentality of any entity 
     referred to in paragraph (1), (2), or (3); or
       (5) any officer, agent, or employee of any entity referred 
     to in paragraph (1), (2), or (3) acting as such in the course 
     of his or her official duty.

     SEC. 229. EFFECT ON OTHER REGULATIONS.

       Nothing in this subtitle precludes the Commission or a 
     State commission from exercising its jurisdiction under 
     otherwise applicable law to protect utility customers.

     SEC. 230. ENFORCEMENT.

       The Commission shall have the same powers as set forth in 
     sections 306 through 317 of the Federal Power Act (16 U.S.C. 
     825e-825p) to enforce the provisions of this subtitle.

     SEC. 231. SAVINGS PROVISIONS.

       (a) In General.--Nothing in this subtitle prohibits a 
     person from engaging in or continuing to engage in activities 
     or transactions in which it is legally engaged or authorized 
     to engage on the effective date of this subtitle.
       (b) Effect on Other Commission Authority.--Nothing in this 
     subtitle limits the authority of the Commission under the 
     Federal Power Act (16 U.S.C. 791a et seq.) (including section 
     301 of that Act) or the Natural Gas Act (15 U.S.C. 717 et 
     seq.) (including section 8 of that Act).

     SEC. 232. IMPLEMENTATION.

       Not later than 18 months after the date of enactment of 
     this subtitle, the Commission shall--
       (1) promulgate such regulations as may be necessary or 
     appropriate to implement this subtitle (other than section 
     225); and
       (2) submit to the Congress detailed recommendations on 
     technical and conforming amendments to Federal law necessary 
     to carry out this subtitle and the amendments made by this 
     subtitle.

     SEC. 233. TRANSFER OF RESOURCES.

       All books and records that relate primarily to the 
     functions transferred to the Commission under this subtitle 
     shall be transferred from the Securities and Exchange 
     Commission to the Commission.

     SEC. 234. INTER-AGENCY REVIEW OF COMPETITION IN THE WHOLESALE 
                   AND RETAIL MARKETS FOR ELECTRIC ENERGY.

       (a) Task Force.--There is established an inter-agency task 
     force, to be known as the ``Electric Energy Market 
     Competition Task Force'' (referred to in this section as the 
     ``task force''), which shall consist of--
       (1) 1 member each from--
       (A) the Department of Justice, to be appointed by the 
     Attorney General of the United States;
       (B) the Federal Energy Regulatory Commission, to be 
     appointed by the chairman of that Commission; and
       (C) the Federal Trade Commission, to be appointed by the 
     chairman of that Commission; and

[[Page S1268]]

       (2) 2 advisory members (who shall not vote), of whom--
       (A) 1 shall be appointed by the Secretary of Agriculture to 
     represent the Rural Utility Service; and
       (B) 1 shall be appointed by the Chairman of the Securities 
     and Exchange Commission to represent that Commission.
       (b) Study and Report.--
       (1) Study.--The task force shall perform a study and 
     analysis of the protection and promotion of competition 
     within the wholesale and retail market for electric energy in 
     the United States.
       (2) Report.--
       (A) Final report.--Not later than 1 year after the 
     effective date of this subtitle, the task force shall submit 
     a final report of its findings under paragraph (1) to the 
     Congress.
       (B) Public comment.--At least 60 days before submission of 
     a final report to the Congress under subparagraph (A), the 
     task force shall publish a draft report in the Federal 
     Register to provide for public comment.
       (c) Focus.--The study required by this section shall 
     examine--
       (1) the best means of protecting competition within the 
     wholesale and retail electric market;
       (2) activities within the wholesale and retail electric 
     market that may allow unfair and unjustified discriminatory 
     and deceptive practices;
       (3) activities within the wholesale and retail electric 
     market, including mergers and acquisitions, that deny market 
     access or suppress competition;
       (4) cross-subsidization that may occur between regulated 
     and nonregulated activities; and
       (5) the role of State public utility commissions in 
     regulating competition in the wholesale and retail electric 
     market.
       (d) Consultation.--In performing the study required by this 
     section, the task force shall consult with and solicit 
     comments from its advisory members, the States, 
     representatives of the electric power industry, and the 
     public.

     SEC. 235. GAO STUDY ON IMPLEMENTATION.

       (a) Study.--The Comptroller General shall conduct a study 
     of the success of the Federal Government and the States 
     during the 18-month period following the effective date of 
     this subtitle in--
       (1) the prevention of anticompetitive practices and other 
     abuses by public utility holding companies, including cross-
     subsidization and other market power abuses; and
       (2) the promotion of competition and efficient energy 
     markets to the benefit of consumers.
       (b) Report to Congress.--Not earlier than 18 months after 
     the effective date of this subtitle or later than 24 months 
     after that effective date, the Comptroller General shall 
     submit a report to the Congress on the results of the study 
     conducted under subsection (a), including probable causes of 
     its findings and recommendations to the Congress and the 
     States for any necessary legislative changes.

     SEC. 236. EFFECTIVE DATE.

       This subtitle shall take effect 18 months after the date of 
     enactment of this subtitle.

     SEC. 237. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such funds as may 
     be necessary to carry out this subtitle.

     SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

       (a) Conflict of Jurisdiction.--Section 318 of the Federal 
     Power Act (16 U.S.C. 825q) is repealed.
       (b) Definitions.--
       (1) Section 201(g) of the Federal Power Act (16 U.S.C. 
     824(g)) is amended by striking ``1935'' and inserting 
     ``2002''.
       (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) 
     is amended by striking ``1935'' and inserting ``2002''.

Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

     SEC. 241. REAL-TIME PRICING STANDARD.

       (a) Adoption of Standard.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     is amended by adding at the end the following:
       ``(11) Real-time pricing.--(A) Each electric utility shall, 
     at the request of an electric consumer, provide electric 
     service under a real-time rate schedule, under which the rate 
     charged by the electric utility varies by the hour (or 
     smaller time interval) according to changes in the electric 
     utility's wholesale power cost. The real-time pricing service 
     shall enable the electric consumer to manage energy use and 
     cost through real-time metering and communications 
     technology.
       ``(B) For purposes of implementing this paragraph, any 
     reference contained in this section to the date of enactment 
     of the Public Utility Regulatory Policies Act of 1978 shall 
     be deemed to be a reference to the date of enactment of this 
     paragraph.
       ``(C) Notwithstanding subsections (b) and (c) of section 
     112, each State regulatory authority shall consider and make 
     a determination concerning whether it is appropriate to 
     implement the standard set out in subparagraph (A) not later 
     than one year after the date of enactment of this 
     paragraph.''.
       ``(b) Special Rules for Real-Time Pricing Standard.--
     Section 115 of the Public Utility Regulatory Policies Act of 
     1978 (16 U.S.C. 2625) is amended by adding at the end the 
     following:
       ``(i) Real-Time Pricing.--In a state that permits third-
     party marketers to sell electric energy to retail electric 
     consumers, the electric consumer shall be entitled to receive 
     the same real-time metering and communication service as a 
     direct retail electric consumer of the electric utility.''.

     SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.

       (a) Adoption of Standards.--Section 113(b) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) 
     is amended by adding at the end the following:
       ``(6) Distributed generation.--Each electric utility shall 
     provide distributed generation, combined heat and power, and 
     district heating and cooling systems competitive access to 
     the local distribution grid and competitive pricing of 
     service, and shall use simplified standard contracts for the 
     interconnection of generating facilities that have a power 
     production capacity of 250 kilowatts or less.
       ``(7) Distribution interconnections.--No electric utility 
     may refuse to interconnect a generating facility with the 
     distribution facilities of the electric utility if the owner 
     or operator of the generating facility complies with 
     technical standards adopted by the State regulatory authority 
     and agrees to pay the costs established by such State 
     regulatory authority.
       ``(8) Minimum fuel and technology diversity standard.--Each 
     electric utility shall develop a plan to minimize dependence 
     on one fuel source and to ensure that the electric energy it 
     sells to consumers is generated using a diverse range of 
     fuels and technologies, including renewable technologies.
       ``(9) Fossil fuel efficiency.--Each electric utility shall 
     develop and implement a ten-year plan to increase the 
     efficiency of its fossil fuel generation and shall monitor 
     and report to its State regulatory authority excessive 
     greenhouse gas emissions resulting from the inefficient 
     operation of its fossil fuel generating plants.''.
       (c) Time for Adopting Standards.--Section 113 of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is 
     further amended by adding at the end the following:
       ``(d) Special Rule.--For purposes of implementing 
     paragraphs (6), (7), (8), and (9) of subsection (b), any 
     reference contained in this section to the date of enactment 
     of the Public Utility Regulatory Policies Act of 1978 shall 
     be deemed to be a reference to the date of enactment of this 
     subsection.''.

     SEC. 243. TECHNICAL ASSISTANCE.

       Section 132(c) of the Public Utility Regulatory Policies 
     Act of 1978 (16 U.S.C. 2642(c)) is amended to read as 
     follows:
       ``(c) Technical Assistance for Certain Responsibilities.--
     The Secretary may provide such technical assistance as he 
     determines appropriate to assist State regulatory authorities 
     and electric utilities in carrying out their responsibilities 
     under section 111(d)(11) and paragraphs (6), (7), (8), and 
     (9) of section 113(b).''.

     SEC. 244. COGENERATION AND SMALL POWER PRODUCTION PURCHASE 
                   AND SALE REQUIREMENTS.

       (a) Termination of Mandatory Purchase and Sale 
     Requirements.--Section 210 of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding 
     at the end the following:
       ``(m) Termination of Mandatory Purchase and Sale 
     Requirements.--
       ``(1) In general.--After the date of enactment of this 
     subsection, no electric utility shall be required to enter 
     into a new contract or obligation to purchase or sell 
     electric energy under this section.
       ``(2) No effect on existing rights and remedies.--Nothing 
     in this subsection affects the rights or remedies of any 
     party with respect to the purchase or sale of electric energy 
     or capacity from or to a facility under this section under 
     any contract or obligation to purchase or to sell electric 
     energy or capacity on the date of enactment of this 
     subsection, including--
       ``(A) the right to recover costs of purchasing such 
     electric energy or capacity; and
       ``(B) in States without competition for retail electric 
     supply, the obligation of a utility to provide, at just and 
     reasonable rates for consumption by a qualifying small power 
     production facility or a qualifying cogeneration facility, 
     backup, standby, and maintenance power.
       ``(3) Recovery of costs.--
       ``(A) Regulation.--To ensure recovery by an electric 
     utility that purchases electric energy or capacity from a 
     qualifying facility pursuant to any legally enforceable 
     obligation entered into or imposed under this section before 
     the date of enactment of this subsection, of all prudently 
     incurred costs associated with the purchases, the Commission 
     shall issue and enforce such regulations as may be required 
     to ensure that the electric utility shall collect the 
     prudently incurred costs associated with such purchases.
       ``(B) Enforcement.--A regulation under subparagraph (A) 
     shall be enforceable in accordance with the provisions of law 
     applicable to enforcement of regulations under the Federal 
     Power Act (16 U.S.C. 791a et seq.).''.
       (b) Elimination of Ownership Limitations.--
       (1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 
     796(17)(C)) is amended to read as follows:
       ``(C) `qualifying small power production facility' means a 
     small power production facility that the Commission 
     determines, by rule, meets such requirements (including 
     requirements respecting minimum size, fuel use, and fuel 
     efficiency) as the Commission may, by rule, prescribe.''.
       (2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 
     796(18)(B)) is amended to read as follows:

[[Page S1269]]

       ``(B) `qualifying cogeneration facility' means a 
     cogeneration facility that the Commission determines, by 
     rule, meets such requirements (including requirements 
     respecting minimum size, fuel use, and fuel efficiency) as 
     the Commission may, by rule, prescribe.''.

     SEC. 245. NET METERING.

       Title VI of the Public Utility Regulatory Policies Act of 
     1978 is amended by adding at the end the following:

     ``SEC. 605. NET METERING FOR RENEWABLE ENERGY AND FUEL CELLS.

       ``(a) Definitions.--For purposes of this section:
       ``(1) The term `eligible on-site generating facility' 
     means--
       ``(A) a facility on the site of a residential electric 
     consumer with a maximum generating capacity of 10 kilowatts 
     or less that is fueled by solar energy, wind energy, or fuel 
     cells; or
       ``(B) a facility on the site of a commercial electric 
     consumer with a maximum generating capacity of 500 kilowatts 
     or less that is fueled solely by a renewable energy resource, 
     landfill gas, or a high efficiency system.
       ``(2) The term `renewable energy resource' means solar, 
     wind, biomass, or geothermal energy.
       ``(3) The term `high efficiency system' means fuel cells or 
     combined heat and power.
       ``(4) The term `net metering service' means service to an 
     electric consumer under which electric energy generated by 
     that electric consumer from an eligible on-site generating 
     facility and delivered to the local distribution facilities 
     may be used to offset electric energy provided by the 
     electric utility to the electric consumer during the 
     applicable billing period.
       ``(b) Requirement To Provide Net Metering Service.--Each 
     electric utility shall make available upon request net 
     metering service to an electric consumer that the electric 
     utility serves.
       ``(c) Rates and Charges.--
       ``(1) Identical charges.--An electric utility--
       ``(A) shall charge the owner or operator of an on-site 
     generating facility rates and charges that are identical to 
     those that would be charged other electric consumers of the 
     electric utility in the same rate class; and
       ``(B) shall not charge the owner or operator of an on-site 
     generating facility any additional standby, capacity, 
     interconnection, or other rate or charge.
       ``(2) Measurement.--An electric utility that sells electric 
     energy to the owner or operator of an on-site generating 
     facility shall measure the quantity of electric energy 
     produced by the on-site facility and the quantity of electric 
     energy consumed by the owner or operator of an on-site 
     generating facility during a billing period in accordance 
     with normal metering practices.
       ``(3) Electric energy supplied exceeding electric energy 
     generated.--If the quantity of electric energy sold by the 
     electric utility to an on-site generating facility exceeds 
     the quantity of electric energy supplied by the on-site 
     generating facility to the electric utility during the 
     billing period, the electric utility may bill the owner or 
     operator for the net quantity of electric energy sold, in 
     accordance with normal metering practices.
       ``(4) Electric energy generated exceeding electric energy 
     supplied.--If the quantity of electric energy supplied by the 
     on-site generating facility to the electric utility exceeds 
     the quantity of electric energy sold by the electric utility 
     to the on-site generating facility during the billing 
     period--
       ``(A) the electric utility may bill the owner or operator 
     of the on-site generating facility for the appropriate 
     charges for the billing period in accordance with paragraph 
     (2); and
       ``(B) the owner or operator of the on-site generating 
     facility shall be credited for the excess kilowatt-hours 
     generated during the billing period, with the kilowatt-hour 
     credit appearing on the bill for the following billing 
     period.
       ``(d) Safety and Performance Standards.--
       ``(1) An eligible on-site generating facility and net 
     metering system used by an electric consumer shall meet all 
     applicable safety, performance, reliability, and 
     interconnection standards established by the National 
     Electrical Code, the Institute of Electrical and Electronics 
     Engineers, and Underwriters Laboratories.
       ``(2) The Commission, after consultation with State 
     regulatory authorities and nonregulated electric utilities 
     and after notice and opportunity for comment, may adopt, by 
     rule, additional control and testing requirements for on-site 
     generating facilities and net metering systems that the 
     Commission determines are necessary to protect public safety 
     and system reliability.
       ``(e) Application.--This section applies to each electric 
     utility during any calendar year in which the total sales of 
     electric energy by such utility for purposes other than 
     resale exceeded 1,000,000,000 kilowatt-hours during the 
     preceding calendar year.''.

                    Subtitle D--Consumer Protections

     SEC. 251. INFORMATION DISCLOSURE.

       (a) Offers and Solicitations.--The Federal Trade Commission 
     shall issue rules requiring each electric utility that makes 
     an offer to sell electric energy, or solicits electric 
     consumers to purchase electric energy to provide the electric 
     consumer a statement containing the following information--
       (1) the nature of the service being offered, including 
     information about interruptibility of service;
       (2) the price of the electric energy, including a 
     description of any variable charges;
       (3) a description of all other charges associated with the 
     service being offered, including access charges, exit 
     charges, back-up service charges, stranded cost recovery 
     charges, and customer service charges; and
       (4) information the Federal Trade Commission determines is 
     technologically and economically feasible to provide, is of 
     assistance to electric consumers in making purchasing 
     decisions, and concerns--
       (A) the product or its price;
       (B) the share of electric energy that is generated by each 
     fuel type; and
       (C) the environmental emissions produced in generating the 
     electric energy.
       (b) Periodic Billings.--The Federal Trade Commission shall 
     issue rules requiring any electric utility that sells 
     electric energy to transmit to each of its electric 
     consumers, in addition to the information transmitted 
     pursuant to section 115(f) of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2625(f)), a clear and concise 
     statement containing the information described in subsection 
     (a)(4) for each billing period (unless such information is 
     not reasonably ascertainable by the electric utility).

     SEC. 252. CONSUMER PRIVACY.

       (a) Prohibition.--The Federal Trade Commission shall issue 
     rules prohibiting any electric utility that obtains consumer 
     information in connection with the sale or delivery of 
     electric energy to an electric consumer from using, 
     disclosing, or permitting access to such information unless 
     the electric consumer to whom such information relates 
     provides prior written approval.
       (b) Permitted Use.--The rules issued under this section 
     shall not prohibit any electric utility from using, 
     disclosing, or permitting access to consumer information 
     referred to in subsection (a) for any of the following 
     purposes--
       (1) to facilitate an electric consumer's change in 
     selection of an electric utility under procedures approved by 
     the State or State regulatory authority;
       (2) to initiate, render, bill, or collect for the sale or 
     delivery of electric energy to electric consumers or for 
     related services;
       (3) to protect the rights or property of the person 
     obtaining such information;
       (4) to protect retail electric consumers from fraud, abuse, 
     and unlawful subscription in the sale or delivery of electric 
     energy to such consumers;
       (5) for law enforcement purposes; or
       (6) for purposes of compliance with any Federal, State, or 
     local law or regulation authorizing disclosure of information 
     to a Federal, State, or local agency.
       (c) Aggregate Consumer Information.--The rules issued under 
     this subsection may permit a person to use, disclose, and 
     permit access to aggregate consumer information and may 
     require an electric utility to make such information 
     available to other electric utilities upon request and 
     payment of a reasonable fee.
       (d) Definitions.--As used in this section:
       (1) The term ``aggregate consumer information'' means 
     collective data that relates to a group or category of retail 
     electric consumers, from which individual consumer identities 
     and characteristics have been removed.
       (2) The term ``consumer information'' means information 
     that relates to the quantity, technical configuration, type, 
     destination, or amount of use of electric energy delivered to 
     any retail electric consumer.

     SEC. 253. UNFAIR TRADE PRACTICES.

       (a) Slamming.--The Federal Trade Commission shall issue 
     rules prohibiting the change of selection of an electric 
     utility except with the informed consent of the electric 
     consumer.
       (b) Cramming.--The Federal Trade Commission shall issue 
     rules prohibiting the sale of goods and services to an 
     electric consumer unless expressly authorized by law or the 
     electric consumer.

     SEC. 254. APPLICABLE PROCEDURES.

       The Federal Trade Commission shall proceed in accordance 
     with section 553 of title 5, United States Code, when 
     prescribing a rule required by this subtitle.

     SEC. 255. FEDERAL TRADE COMMISSION ENFORCEMENT.

       Violation of a rule issued under this subtitle shall be 
     treated as a violation of a rule under section 18 of the 
     Federal Trade Commission Act (15 U.S.C. 57a) respecting 
     unfair or deceptive acts or practices. All functions and 
     powers of the Federal Trade Commission under such Act 
     are available to the Federal Trade Commission to enforce 
     compliance with this subtitle notwithstanding any 
     jurisdictional limits in such Act.

     SEC. 256. STATE AUTHORITY.

       Nothing in this subtitle shall be construed to preclude a 
     State or State regulatory authority from prescribing and 
     enforcing additional laws, rules, or procedures regarding the 
     practices which are the subject of this section, so long as 
     such laws, rules, or procedures are not inconsistent with the 
     provisions of this section or with any rule prescribed by the 
     Federal Trade Commission pursuant to it.

     SEC. 257. APPLICATION OF SUBTITLE.

       The provisions of this subtitle apply to each electric 
     utility if the total sales of electric energy by such utility 
     for purposes other than resale exceed 500 million kilowatt-
     hours per calendar year. The provisions of this subtitle do 
     not apply to the operations

[[Page S1270]]

     of an electric utility to the extent that such operations 
     relate to sales of electric energy for purposes of resale.

     SEC. 258. DEFINITIONS.

       As used in this subtitle:
       (1) The term ``aggregate consumer information'' means 
     collective data that relates to a group or category of 
     electric consumers, from which individual consumer identities 
     and identifying characteristics have been removed.
       (2) The term ``consumer information'' means information 
     that relates to the quantity, technical configuration, type, 
     destination, or amount of use of electric energy delivered to 
     an electric consumer.
       (3) The terms ``electric consumer'', ``electric utility'', 
     and ``State regulatory authority'' have the meanings given 
     such terms in section 3 of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2602).

       Subtitle E--Renewable Energy and Rural Construction Grants

     SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.

       (a) Incentive Payments.--Section 1212(a) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(a)) is amended by 
     striking ``and which satisfies'' and all that follows through 
     ``Secretary shall establish.'' and inserting the following: 
     ``. The Secretary shall establish other procedures necessary 
     for efficient administration of the program. The Secretary 
     shall not establish any criteria or procedures that have the 
     effect of assigning to proposals a higher or lower priority 
     for eligibility or allocation of appropriated funds on the 
     basis of the energy source proposed.''.
       (b) Qualified Renewable Energy Facility.--Section 1212(b) 
     of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is 
     amended--
       (1) by striking ``a State or any political'' and all that 
     follows through ``nonprofit electrical cooperative'' and 
     inserting the following: ``an electricity-generating 
     cooperative exempt from taxation under section 501(c)(12) or 
     section 1381(a)(2)(C) of the Internal Revenue Code of 1986, a 
     public utility described in section 115 of such Code, a 
     State, Commonwealth, territory, or possession of the United 
     States or the District of Columbia, or a political 
     subdivision thereof, or an Indian tribal government or 
     subdivision thereof,''; and
       (2) by inserting ``landfill gas, incremental hydropower, 
     ocean'' after ``wind, biomass,''.
       (c) Eligibility Window.--Section 1212(c) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by 
     striking ``during the 10-fiscal year period beginning with 
     the first full fiscal year occurring after the enactment of 
     this section'' and inserting ``before October 1, 2013''.
       (d) Payment Period.--Section 1212(d) of the Energy Policy 
     Act of 1992 (42 U.S.C. 13317(d)) is amended by inserting ``or 
     in which the Secretary finds that all necessary Federal and 
     State authorizations have been obtained to begin construction 
     of the facility'' after ``eligible for such payments''.
       (e) Amount of Payment.--Section 1212(e)(1) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended by 
     inserting ``landfill gas, incremental hydropower, ocean'' 
     after ``wind, biomass,''.
       (f) Sunset.--Section 1212(f) of the Energy Policy Act of 
     1992 (42 U.S.C. 13317(f)) is amended by striking ``the 
     expiration of'' and all that follows through ``of this 
     section'' and inserting ``September 30, 2023''.
       (g) Incremental Hydropower; Authorization of 
     Appropriations.--Section 1212 of the Energy Policy Act of 
     1992 (42 U.S.C. 13317) is further amended by striking 
     subsection (g) and inserting the following:
       ``(g) Incremental Hydropower.--
       ``(1) Programs.--Subject to subsection (h)(2), if an 
     incremental hydropower program meets the requirements of this 
     section, as determined by the Secretary, the incremental 
     hydropower program shall be eligible to receive incentive 
     payments under this section.
       ``(2) Definition of Incremental Hydropower.--In this 
     subsection, the term `incremental hydropower' means 
     additional generating capacity achieved from increased 
     efficiency or additions of new capacity at a hydroelectric 
     facility in existence on the date of enactment of this 
     paragraph.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), there are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section for fiscal years 2003 through 2023.
       ``(2) Limitation on funds used for incremental hydropower 
     programs.--Not more than 30 percent of the amounts made 
     available under paragraph (1) shall be used to carry out 
     programs described in subsection (g)(2).
       ``(3) Availability of funds.--Funds made available under 
     paragraph (1) shall remain available until expended.''.

     SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

       (a) Resource Assessment.--Not later than 3 months after the 
     date of enactment of this title, and each year thereafter, 
     the Secretary of Energy shall review the available 
     assessments of renewable energy resources available within 
     the United States, including solar, wind, biomass, ocean, 
     geothermal, and hydroelectric energy resources, and undertake 
     new assessments as necessary, taking into account changes in 
     market conditions, available technologies and other relevant 
     factors.
       (b) Contents of Reports.--Not later than one year after the 
     date of enactment of this title, and each year thereafter, 
     the Secretary shall publish a report based on the assessment 
     under subsection (a). The report shall contain--
       (1) a detailed inventory describing the available amount 
     and characteristics of the renewable energy resources, and
       (2) such other information as the Secretary of Energy 
     believes would be useful in developing such renewable energy 
     resources, including descriptions of surrounding terrain, 
     population and load centers, nearby energy infrastructure, 
     location of energy and water resources, and available 
     estimates of the costs needed to develop each resource.

     SEC. 263. FEDERAL PURCHASE REQUIREMENT.

       (a) Requirement.--The President shall ensure that, of the 
     total amount of electric energy the federal government 
     consumes during any fiscal year--
       (1) not less than 3 percent in fiscal years 2003 through 
     2004,
       (2) not less than 5 percent in fiscal years 2005 through 
     2009, and
       (3) not less than 7.5 percent in fiscal year 2010 and each 
     fiscal year thereafter--
     shall be renewable energy. The President shall encourage the 
     use of innovative purchasing practices, including aggregation 
     and the use of renewable energy derivatives, by federal 
     agencies.
       (b) Definition.--For purposes of this section, the term 
     ``renewable energy'' means electric energy generated from 
     solar, wind, biomass, geothermal, fuel cells, or additional 
     hydroelectric generation capacity achieved from increased 
     efficiency or additions of new capacity at an existing 
     hydroelectric dam.
       (c) Tribal Power Generation.--To the maximum extent 
     practicable, the President shall ensure that not less than 
     one-tenth of the amount specified in subsection (a) shall be 
     renewable energy that is generated by an Indian tribe or by a 
     corporation, partnership, or business association which is 
     wholly or majority owned, directly or indirectly, by an 
     Indian tribe. For purposes of this subsection, the term 
     ``Indian tribe'' means any Indian tribe, band, nation, or 
     other organized group or community, including any Alaska 
     Native village or regional or village corporation as defined 
     in or established pursuant to the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.), which is recognized 
     as eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.

     SEC. 264. RURAL CONSTRUCTION GRANTS.

       Section 313 of the Rural Electrification Act of 1936 (7 
     U.S.C. 940c) is amended by adding after subsection (b) the 
     following:
       ``(c) Rural and Remote Communities Electrification 
     Grants.--The Secretary of Agriculture, in consultation with 
     the Secretary of Energy and the Secretary of the Interior, 
     may provide grants to eligible borrowers under this Act for 
     the purpose of increasing energy efficiency, siting or 
     upgrading transmission and distribution lines, or providing 
     or modernizing electric facilities for--
       ``(1) a unit of local government of a State or territory; 
     or
       ``(2) an Indian tribe or Tribal College or University as 
     defined in section 316(b)(3) of the Higher Education Act (20 
     U.S.C. 1059c(b)(3)).
       ``(d) Grant Criteria.--The Secretary shall make grants 
     based on a determination of cost-effectiveness and most 
     effective use of the funds to achieve the stated purposes of 
     this section.
       ``(e) Preference.--In making grants under this section, the 
     Secretary shall give a preference to renewable energy 
     facilities.
       ``(f) Definition.--For purposes of this section, the term 
     `Indian tribe' means any Indian tribe, band, nation, or other 
     organized group or community, including any Alaska Native 
     village or regional or village corporation as defined in or 
     established pursuant to the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.), which is 
     recognized as eligible for the special programs and 
     services provided by the United States to Indians because 
     of their status as Indians;
       (e) Authorization.--For the purpose of carrying out 
     subsection (c), there are authorized to be appropriated to 
     the Secretary $20,000,000 for each of the seven fiscal years 
     following the date of enactment of this subsection.''.

     SEC. 265. RENEWABLE PORTFOLIO STANDARD.

       Title VI of the Public Utility Regulatory Policies Act of 
     1978 is further amended by adding at the end the following:

     SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Minimum Renewable Generation Requirement.--For each 
     calendar year beginning with 2003, each retail electric 
     supplier shall submit to the Secretary renewable energy 
     credits in an amount equal to the required annual percentage, 
     specified in subsection (b), of the total electric energy 
     sold by the retail electric supplier to electric consumers in 
     the calendar year. The retail electric supplier shall make 
     this submission before April 1 of the following calendar 
     year.
       ``(b) Required Annual Percentage.--
       ``(1) For calendar years 2003 and 2004, the required annual 
     percentage shall be determined by the Secretary in an amount 
     less than the amount in paragraph (2);
       ``(2) For calendar year 2005 the required annual percentage 
     shall be 2.5 percent of the retail electric supplier's base 
     amount; and
       ``(3) For each calendar year from 2006 through 2020, the 
     required annual percentage of the retail electric supplier's 
     base amount shall be .5 percent greater than the required 
     annual percentage for the calendar year immediately 
     preceding.

[[Page S1271]]

       ``(c) Submission of Credits.--(1) A retail electric 
     supplier may satisfy the requirements of subsection (a) 
     through the submission of--
       ``(A) renewable energy credits issued under subsection (d) 
     for renewable energy generated by the retail electric 
     supplier in the calendar year for which credits are being 
     submitted or any of the two previous calendar years;
       ``(B) renewable energy credits obtained by purchase or 
     exchange under subsection (e);
       ``(C) renewable energy credits borrowed against future 
     years under subsection (f); or
       ``(D) any combination of credits under subparagraphs (A), 
     (B), and (C).
       ``(2) A credit may be counted toward compliance with 
     subsection (a) only once.
       ``(d) Issuance of Credits.--(1) The Secretary shall 
     establish, not later than one year after the date of 
     enactment of this section, a program to issue, monitor the 
     sale or exchange of, and track renewable energy credits.
       ``(2) Under the program, an entity that generates electric 
     energy through the use of a renewable energy resource may 
     apply to the Secretary for the issuance of renewable energy 
     credits. The application shall indicate--
       ``(A) the type of renewable energy resource used to produce 
     the electricity,
       ``(B) the location where the electric energy was produced, 
     and
       ``(C) any other information the Secretary determines 
     appropriate.
       ``(3)(A) Except as provided in paragraphs (B) and (C), the 
     Secretary shall issue to an entity one renewable energy 
     credit for each kilowatt-hour of electric energy the entity 
     generates in calendar year 2002 and any succeeding year 
     through the use of a renewable energy resource at an eligible 
     facility.
       ``(B) For incremental hydropower the credits shall be 
     calculated based on a normalized annual capacity factor for 
     each facility, and not actual generation. The calculation of 
     the credits for incremental hydropower shall not be based on 
     any operational changes at the hydroelectric facility not 
     directly associated with the efficiency improvements or 
     capacity additions.
       ``(C) The Secretary shall issue two renewable energy 
     credits for each kilowatt-hour of electric energy generated 
     in calendar year 2002 and any succeeding year through the use 
     of a renewable energy resource at an eligible facility 
     located on Indian land. For purposes of this paragraph, 
     renewable energy generated by biomass cofired with other 
     fuels is eligible for two credits only if the biomass was 
     grown on the land eligible under this paragraph.
       ``(D) To be eligible for a renewable energy credit, the 
     unit of electric energy generated through the use of a 
     renewable energy resource may be sold or may be used by the 
     generator. If both a renewable energy resource and a non-
     renewable energy resource are used to generate the electric 
     energy, the Secretary shall issue credits based on the 
     proportion of the renewable energy resource used. The 
     Secretary shall identify renewable energy credits by type and 
     date of generation.
       ``(4) In order to receive a renewable energy credit, the 
     recipient of a renewable energy credit shall pay a fee, 
     calculated by the Secretary, in an amount that is equal to 
     the administrative costs of issuing, recording, monitoring 
     the sale or exchange of, and tracking the credit. 
     The Secretary shall retain the fee and use it to pay these 
     administrative costs.
       ``(5) When a generator sells electric energy generated 
     through the use of a renewable energy resource to a retail 
     electric supplier under a contract subject to section 210 of 
     this Act, the retail electric supplier is treated as the 
     generator of the electric energy for the purposes of this 
     section for the duration of the contract.
       ``(e) Credit Trading.--A renewable energy credit may be 
     sold or exchanged by the entity to whom issued or by any 
     other entity who acquires the credit. A renewable energy 
     credit for any year that is not used to satisfy the minimum 
     renewable generation requirement of subsection (a) for that 
     year may be carried forward for use in another year.
       ``(f) Credit Borrowing.--At any time before the end of 
     calendar year 2003, a retail electric supplier that has 
     reason to believe that it will not have sufficient renewable 
     energy credits to comply with subsection (a) may--
       ``(1) submit a plan to the Secretary demonstrating that the 
     retail electric supplier will earn sufficient credits within 
     the next 3 calendar years which, when taken into account, 
     will enable the retail electric supplier to meet the 
     requirements of subsection (a) for calendar year 2003 and the 
     calendar year involved; and
       (2) upon the approval of the plan by the Secretary, apply 
     credits that the plan demonstrates will be earned within the 
     next 3 calendar years to meet the requirements of subsection 
     (a) for each calendar year involved.
       ``(g) Enforcement.--The Secretary may bring an action in 
     the appropriate United States district court to impose a 
     civil penalty on a retail electric supplier that does not 
     comply with subsection (a). A retail electric supplier who 
     does not submit the required number of renewable energy 
     credits under subsection (a) is subject to a civil penalty of 
     not more than 3 cents each for the renewable energy credits 
     not submitted.
       ``(h) Information Collection.--The Secretary may collect 
     the information necessary to verify and audit--
       ``(1) the annual electric energy generation and renewable 
     energy generation of any entity applying for renewable energy 
     credits under this section,
       ``(2) the validity of renewable energy credits submitted by 
     a retail electric supplier to the Secretary, and
       ``(3) the quantity of electricity sales of all retail 
     electric suppliers.
       ``(i) Environmental Savings Clause.--Incremental hydropower 
     shall be subject to all applicable environmental laws and 
     licensing and regulatory requirements.
       ``(j) State Savings Clause.--This section does not preclude 
     a State from requiring additional renewable energy generation 
     in that State.
       ``(k) Definitions.--For purposes of this section--
       ``(1) The term `eligible facility' means--
       ``(A) a facility for the generation of electric energy from 
     a renewable energy resource that is placed in service on or 
     after January 1, 2002; or
       ``(B) a repowering or cofiring increment that is placed in 
     service on or after January 1, 2002 at a facility for the 
     generation of electric energy from a renewable energy 
     resource that was placed in service before January 1, 2002.
     An eligible facility does not have to be interconnected to 
     the transmission or distribution system facilities of an 
     electric utility.
       ``(2) The term `generation offset' means reduced 
     electricity usage metered at a site where a customer consumes 
     electricity from a renewable energy technology.
       ``(3) The term `incremental hydropower' means additional 
     generation capacity achieved from increased efficiency or 
     additions of capacity after January 1, 2002 at a 
     hydroelectric dam that was placed in service before January 
     1, 2002.
       ``(4) The term `Indian land' means--
       (A) any land within the limits of any Indian reservation, 
     pueblo or rancheria,
       ``(B) any land not within the limits of any Indian 
     reservation, pueblo or rancheria title to which was on the 
     date of enactment of this paragraph either held by the United 
     States for the benefit of any Indian tribe or individual or 
     held by any Indian tribe or individual subject to restriction 
     by the United States against alienation,
       ``(C) any dependent Indian community, and
       ``(D) any land conveyed to any Alaska Native corporation 
     under the Alaska Native Claims Settlement Act.
       ``(5) The term `Indian tribe' means any Indian tribe, band, 
     nation, or other organized group or community, including any 
     Alaska Native village or regional or village corporation as 
     defined in or established pursuant to the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
     recognized as eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians.
       ``(6) The term `renewable energy' means electric energy 
     generated by a renewable energy resource.
       ``(7) The term `renewable energy resource' means solar, 
     wind, biomass, ocean, or geothermal energy, a generation 
     offset, or incremental hydropower facility.
       ``(8) The term `repowering or cofiring increment' means the 
     additional generation from a modification that is placed in 
     service on or after January 1, 2002 to expand electricity 
     production at a facility used to generate electric energy 
     from a renewable energy resource or to cofire biomass that 
     was placed in service before January 1, 2002.
       ``(9) The term `retail electric supplier' means a person, 
     State agency, or Federal agency that sells electric energy to 
     electric consumers and sold not less than 500,000,000 
     kilowatt-hours of electric energy to electric consumers for 
     purposes other than resale during the preceding calendar 
     year.
       ``(10) The term `retail electric supplier's base amount' 
     means the total amount of electric energy sold by the retail 
     electric supplier to electric customers during the most 
     recent calendar year for which information is available, 
     excluding electric energy generated by a renewable energy 
     resource, landfill gas, or a hydroelectric facility.
       ``(l) Sunset.--Subsection (a) of this section expires 
     December 31, 2020.''.

     SEC. 266. RENEWABLE ENERGY ON FEDERAL LAND.

       (a) Cost-Share Demonstration Program.--Within 12 months 
     after the date of enactment of this section, the Secretaries 
     of the Interior, Agriculture, and Energy shall develop 
     guidelines for a cost-share demonstration program for the 
     development of wind and solar energy facilities on Federal 
     land.
       (b) Definition of Federal Land.--As used in this section, 
     the term ``Federal land'' means land owned by the United 
     States that is subject to the operation of the mineral 
     leasing laws; and is either:
       (1) public land as defined in section 103(e) of the Federal 
     Land Policy and Management Act of 1976 (42 U.S.C. 1702(e)); 
     or
       (2) a unit of the National Forest System as that term is 
     used in section 11(a) of the Forest and Rangeland Renewable 
     Resources Planning Act of 1974 (16 U.S.C. 1609(a)).
       (c) Rights-of-Ways.--The demonstration program shall 
     provide for the issuance of rights-of-way pursuant to the 
     provisions of title V of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1761 et seq.) by the 
     Secretary of the Interior with respect to Federal land under 
     the jurisdiction of the

[[Page S1272]]

     Department of the Interior, and by the Secretary of 
     Agriculture with respect to federal lands under the 
     jurisdiction of the Department of Agriculture.
       (d) Available Sites.--For purposes of this demonstration 
     program, the issuance of rights-of-way shall be limited to 
     areas:
       (1) of high energy potential for wind or solar development;
       (2) that have been identified by the wind or solar energy 
     industry, through a process of nomination, application, or 
     otherwise, as being of particular interest to one or both 
     industries;
       (3) that are not located within roadless areas;
       (4) where operation of wind or solar facilities would be 
     compatible with the scenic, recreational, environmental, 
     cultural, or historic values of the Federal land, and would 
     not require the construction of new roads for the siting of 
     lines or other transmission facilities; and
       (5) where issuance of the right-of-way is consistent with 
     the land and resource management plans of the relevant land 
     management agencies.
       (e) Cost-Share Payments by DOE.--The Secretary of Energy, 
     in cooperation with the Secretary of the Interior with 
     respect to Federal land under the jurisdiction of the 
     Department of the Interior, and the Secretary of Agriculture 
     with respect to Federal land under the jurisdiction of the 
     Department of Agriculture, shall determine if the portion of 
     a project on federal land is eligible for financial 
     assistance pursuant to this section. Only those projects that 
     are consistent with the requirements of this section and 
     further the purposes of this section shall be eligible. In 
     the event a project is selected for financial assistance, the 
     Secretary of Energy shall provide no more than 15 percent of 
     the costs of the project on the federal land, and the 
     remainder of the costs shall be paid by non-Federal sources.
       (f) Revision of Land Use Plans.--The Secretary of the 
     Interior shall consider development of wind and solar energy, 
     as appropriate, in revisions of land use plans under section 
     202 of the Federal Land Policy and Management Act of 1976 (42 
     U.S.C. 1712); and the Secretary of Agriculture shall consider 
     development of wind and solar energy, as appropriate, in 
     revisions of land and resource management plans under section 
     5 of the Forest and Rangeland Renewable Resources Planning 
     Act of 1974 (16 U.S.C. 1604). Nothing in this subsection 
     shall preclude the issuance of a right-of-way for the 
     development of a wind or solar energy project prior to the 
     revision of a land use plan by the appropriate land 
     management agency.
       (g) Report to Congress.--Within 24 months after the date of 
     enactment of this section, the Secretary of the Interior 
     shall develop and report to Congress recommendations on any 
     statutory or regulatory changes the Secretary believes would 
     assist in the development of renewable energy on Federal 
     land. The report shall include--
       (1) a five-year plan developed by the Secretary of the 
     Interior, in cooperation with the Secretary of Agriculture, 
     for encouraging the development of wind and solar energy on 
     Federal land in an environmentally sound manner; and
       (2) an analysis of--
       (A) whether the use of rights-of-ways is the best means of 
     authorizing use of Federal land for the development of wind 
     and solar energy, or whether such resources could be better 
     developed through a leasing system, or other method;
       (B) the desirability of grants, loans, tax credits or other 
     provisions to promote wind and solar energy development on 
     Federal land; and
       (C) any problems, including environmental concerns, which 
     the Secretary of the Interior or the Secretary of Agriculture 
     have encountered in managing wind or solar energy projects on 
     Federal land, or believe are likely to arise in relation to 
     the development of wind or solar energy on Federal land;
       (3) a list, developed in consultation with the Secretaries 
     of Energy and Defense, of lands under the jurisdiction of the 
     Departments of Energy and Defense that would be suitable for 
     development for wind or solar energy, and recommended 
     statutory and regulatory mechanisms for such development; and
       (4) an analysis, developed in consultation with the 
     Secretaries of Energy and Commerce, of the potential for 
     development of wind, solar, and ocean energy on the Outer 
     Continental Shelf, along with recommended statutory and 
     regulatory mechanisms for such development.

                  TITLE III--HYDROELECTRIC RELICENSING

     SEC. 301. ALTERNATIVE MANDATORY CONDITIONS AND FISHWAYS.

       (a) Alternative Mandatory Conditions.--Section 4 of the 
     Federal Power Act (16 U.S.C. 797) is amended by adding at the 
     end the following:
       ``(h)(1) Whenever any person applies for a license for any 
     project works within any reservation of the United States, 
     and the Secretary of the department under whose supervision 
     such reservation falls deems a condition to such license to 
     be necessary under the first proviso of subsection (e), the 
     license applicant or any other party to the licensing 
     proceeding may propose an alternative condition.
       ``(2) Notwithstanding the first proviso of subsection (e), 
     the Secretary of the department under whose supervision the 
     reservation falls shall accept the proposed alternative 
     condition referred to in paragraph (1), and the Commission 
     shall include in the license such alternative condition, if 
     the Secretary of the appropriate department determines, based 
     on substantial evidence provided by the party proposing such 
     alternative condition, that the alternative condition--
       ``(A) provides no less protection for the reservation than 
     provided by the condition deemed necessary by the Secretary; 
     and
       ``(B) will either--
       ``(i) cost less to implement, or
       ``(ii) result in improved operation of the project works 
     for electricity production,

     as compared to the condition deemed necessary by the 
     Secretary.
       ``(3) Within 1 year after the enactment of this subsection, 
     each Secretary concerned shall, by rule, establish a process 
     to expeditiously resolve conflicts arising under this 
     subsection.''.
       (b) Alternative Fishways.--Section 18 of the Federal Power 
     Act (16 U.S.C. 811) is amended by--
       ``(1) inserting `(a)' before the first sentence; and
       ``(2) adding at the end the following:
       ``(b)(1) Whenever the Commission shall require a licensee 
     to construct, maintain, or operate a fishway prescribed by 
     the Secretary of the Interior or the Secretary of Commerce 
     under this section, the licensee or any other party to the 
     proceeding may propose an alternative to such prescription to 
     construct, maintain, or operate a fishway.
       ``(2) Notwithstanding subsection (a), the Secretary of the 
     Interior or the Secretary of Commerce, as appropriate, shall 
     accept and prescribe, and the Commission shall require, the 
     proposed alternative referred to in paragraph (1), if the 
     Secretary of the appropriate department determines, based on 
     substantial evidence provided by the party proposing such 
     alternative, that the alternative--
       ``(A) will be no less effective than the fishway initially 
     prescribed by the Secretary, and
       ``(B) will either--
       ``(i) cost less to implement, or
       ``(ii) result in improved operation of the project works 
     for electricity production,

     as compared to the fishway initially prescribed by the 
     Secretary.
       ``(3) Within 1 year after the enactment of this subsection, 
     the Secretary of the Interior and the Secretary of Commerce 
     shall each, by rule, establish a process to expeditiously 
     resolve conflicts arising under this subsection.''.

     SEC. 302. CHARGES FOR TRIBAL LANDS.

       Section 10(e)(1) of the Federal Power Act (16 U.S.C. 
     803(e)(1)) is amended by inserting after the second proviso 
     the following: ``Provided further, That the Commission shall 
     not issue a new or original license for projects involving 
     tribal lands embraced within Indian reservations until annual 
     charges required under this section have been fixed.''.

     SEC. 303. DISPOSITION OF HYDROELECTRIC CHARGES.

       Section 17 of the Federal Power Act (16 U.S.C. 810) is 
     amended by striking ``to be expended under the direction of 
     the Secretary of the Army in the maintenance and operation of 
     dams and other navigation structures owned by the United 
     States or in the construction, maintenance, or operation of 
     headwater or other improvements of navigable waters of the 
     United States.'' and inserting the following: ``to be 
     expended in the following manner on an annual basis: (A) 
     fifty-percent of the funds shall be expended by the Secretary 
     of the Interior pursuant to a grant program to be established 
     by the Secretary to support collaborative watershed 
     restoration and education activities intended to promote the 
     recovery of candidate, threatened, and endangered species 
     under the Endangered Species Act of 1973; and (B) fifty-
     percent of the funds shall be expended by the Secretary of 
     Agriculture, acting through the Chief of the Forest Service, 
     for the Youth Conservation Corps program.''.

     SEC. 304. ANNUAL LICENSES.

       Section 15(a) of the Federal Power Act (16 U.S.C. 808(a)) 
     is amended by adding at the end the following:
       ``(4) Prior to issuing a fourth and subsequent annual 
     license under paragraph (1), the Commission shall first 
     consult with the Secretary of the Interior and the Secretary 
     of Commerce, and if the project is within any reservation, 
     with the Secretary under whose supervision such reservation 
     falls.
       ``(5) Prior to issuing a fourth and subsequent annual 
     license under paragraph (1), the Commission shall publish a 
     written statement setting forth the reasons why the annual 
     license is needed, and describing the results of consultation 
     with the Secretary of the Interior, the Secretary of 
     Commerce, and the Secretary under whose supervision the 
     reservation falls. Such explanation shall also contain the 
     best judgment of the Commission as to whether the Commission 
     anticipates issuing an additional annual license.
       ``(6) At least 60 days prior to expiration of the seventh 
     and subsequent annual licenses issued under paragraph (1), 
     the Commission shall submit to Congress the written statement 
     required in paragraph (5).''.

     SEC. 305. ENFORCEMENT.

       (a) Monitoring and Investigations of Mandatory Conditions 
     and Fishway Prescriptions.--The first sentence of section 
     31(a) of the Federal Power Act (16 U.S.C. 823b(a)) is amended 
     to read as follows:
     ``The Commission shall monitor and investigate compliance 
     with each license and permit issued under this Part, each 
     condition

[[Page S1273]]

     imposed under section 4(e) or 4(h), each fishway prescription 
     imposed under section 18, and each exemption granted from any 
     requirement of this Part.''
       (b) Compliance Orders.--The third sentence of section 31(a) 
     of the Federal Power Act (16 U.S.C. 823(a)) is amended to 
     read as follows:
     ``After notice and opportunity for public hearing, the 
     Commission may issue such orders as necessary to require 
     compliance with the terms and conditions of licenses and 
     permits issued under this Part, with conditions imposed under 
     section 4(e) or 4(h), with fishway prescriptions imposed 
     under section 18, and with the terms and conditions of 
     exemptions granted from any requirement of this Part.''

     SEC. 306. ESTABLISHMENT OF HYDROELECTRIC RELICENSING 
                   PROCEDURES.

       (a) Joint Procedures of the Commission and Resource 
     Agencies.--
       (1) Within 18 months after the date of enactment of this 
     section, the Commission, the Secretary of the Interior, the 
     Secretary of Commerce, and the Secretary of Agriculture, 
     shall, after consultation with the interested states and 
     public review and comment, issue coordinated regulations 
     governing the issuance of a license under section 15 of the 
     Federal Power Act (16 U.S.C. 808).
       (2) Such regulations shall provide for--
       (A) the participation of the Commission in the pre-
     application environmental scoping process conducted by the 
     resource agencies pursuant to section 15(b) of the Federal 
     Power Act (16 U.S.C. 808(b)), sufficient to allow the 
     Commission and the resource agencies to coordinate 
     environmental reviews and other regulatory procedures of the 
     Commission and the resource agencies under Part I of the 
     Federal Power Act, and under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       (B) issuance by the resource agencies of draft and final 
     mandatory conditions under section 4(e) of the Federal Power 
     Act (16 U.S.C. 797(e)), and draft and final fishway 
     prescriptions under section 18 of the Federal Power Act (16 
     U.S.C. 811);
       (C) to the maximum extent possible, identification by the 
     Commission staff in the draft analysis of the license 
     application conducted under the National Environmental Policy 
     Act, of all license articles and license conditions the 
     Commission is likely to include in the license;
       (D) coordination by the Commission and the resource 
     agencies of analysis under the National Environmental Policy 
     Act for final license articles and conditions recommended by 
     Commission staff, and the final mandatory conditions and 
     fishway prescriptions of the resource agencies;
       (E) procedures for ensuring coordination and sharing, to 
     the maximum extent possible, of information, studies, data 
     and analysis by the Commission and the resource agencies to 
     reduce the need for duplicative studies and analysis by 
     license applicants and other parties to the license 
     proceeding; and
       (F) procedures for ensuring resolution at an early stage of 
     the process of the scope and type of reasonable and necessary 
     information, studies, data, and analysis to be provided by 
     the license applicant
       (b) Procedures of the Commission.--Within 18 months after 
     the date of enactment of this section, the Commission shall, 
     after consultation with the interested federal agencies and 
     states and after public comment and review, issue additional 
     regulations governing the issuance of a license under section 
     15 of the Federal Power Act (16 U.S.C. 808). Such regulations 
     shall--
       (1) set a schedule for the Commission to issue--
       (A) a tendering notice indicating that an application has 
     been filed with the Commission;
       (B) advanced notice to resource agencies of the issuance of 
     the Ready for Environmental Analysis Notice requesting 
     submission of recommendations, conditions, prescriptions, and 
     comments;
       (C) a license decision after completion of environmental 
     assessments or environmental impact statements prepared 
     pursuant to the National Environmental Policy Act; and
       (D) responses to petitions, motions, complaints and 
     requests for rehearing;
       (2) set deadlines for an applicant to conduct all needed 
     resource studies in support of its license application;
       (3) ensure a coordinated schedule for all major actions by 
     the applicant, the Commission, affected Federal and State 
     agencies, Indian Tribes and other parties, through final 
     decision on the application; and
       (4) provide for the adjustment of schedules if unavoidable 
     delays occur.

     SEC. 307. RELICENSING STUDY.

       (a) In General.--The Federal Energy Regulatory Commission 
     shall, jointly with the Secretary of Commerce, the Secretary 
     of the Interior, and the Secretary of Agriculture, conduct a 
     study of all new licenses issued for existing projects under 
     section 15 of the Federal Power Act (16 U.S.C. 808) since 
     January 1, 1994.
       (b) Scope.--The study shall analyze:
       (1) the length of time the Commission has taken to issue 
     each new license for an existing project;
       (2) the additional cost to the licensee attributable to new 
     license conditions;
       (3) the change in generating capacity attributable to new 
     license conditions;
       (4) the environmental benefits achieved by new license 
     conditions;
       (5) significant unmitigated environmental damage of the 
     project and costs to mitigate such damage; and
       (6) litigation arising from the issuance or failure to 
     issue new licenses for existing projects under section 15 of 
     the Federal Power Act or the imposition or failure to impose 
     new license conditions.
       (c) Definition.--As used in this section, the term ``new 
     license condition'' means any condition imposed under--
       (1) section 4(e) of the Federal Power Act (16 U.S.C. 
     797(e)),
       (2) section 10(a) of the Federal Power Act (16 U.S.C. 
     803(a)),
       (3) section 10(e) of the Federal Power Act (16 U.S.C. 
     803(e)),
       (4) section 10(j) of the Federal Power Act (16 U.S.C. 
     803(j)),
       (5) section 18 of the Federal Power Act (16 U.S.C. 811), or
       (6) section 401(d) of the Clean Water Act (33 U.S.C. 
     1341(d)).
       (d) Consultation.--The Commission shall give interested 
     persons and licensees an opportunity to submit information 
     and views in writing.
       (e) Report.--The Commission shall report its findings to 
     the Committee on Energy and Natural Resources of the United 
     States Senate and the Committee on Energy and Commerce of the 
     House of Representatives not later than 24 months after the 
     date of enactment of this section.

     SEC. 308. DATA COLLECTION PROCEDURES.

       Within 24 months after the date of enactment of this 
     section, the Federal Energy Regulatory Commission, the 
     Secretary of the Interior, the Secretary of Commerce, and the 
     Secretary of Agriculture shall jointly develop procedures for 
     ensuring complete and accurate information concerning the 
     time and cost to parties in the hydroelectric licensing 
     process under part I of the Federal Power Act (16 U.S.C. 791 
     et seq.). Such data shall be published regularly, but no less 
     frequently than every three years.

                        TITLE IV--INDIAN ENERGY

     SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.

       Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 
     3501-3506) is amended by adding after section 2606 the 
     following:

     ``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.

       ``(a) Definitions.--For purposes of this section--
       ``(1) the term `Director' means the Director of the Office 
     of Indian Energy Policy and Programs established by section 
     217 of the Department of Energy Organization Act, and
       ``(2) the term `Indian land' means--
       ``(A) any land within the limits of an Indian reservation, 
     pueblo, or rancheria;
       ``(B) any land not within the limits of an Indian 
     reservation, pueblo, or rancheria whose title on the date of 
     enactment of this section was held--
       ``(i) in trust by the United States for the benefit of an 
     Indian tribe,
       ``(ii) by an Indian tribe subject to restriction by the 
     United States against alienation, or
       ``(iii) by a dependent Indian community; and
       ``(C) land conveyed to an Alaska Native Corporation under 
     the Alaska Native Claims Settlement Act.
       ``(b) Indian Energy Education Planning and Management 
     Assistance.--
       ``(1) The Director shall establish programs within the 
     Office of Indian Energy Policy and Programs to assist Indian 
     tribes in meeting their energy education, research and 
     development, planning, and management needs.
       ``(2) The Director may make grants, on a competitive basis, 
     to an Indian tribe for--
       ``(A) renewable energy, energy efficiency, and conservation 
     programs;
       ``(B) studies and other activities supporting tribal 
     acquisition of energy supplies, services, and facilities;
       ``(C) planning, constructing, developing, operating, 
     maintaining, and improving tribal electrical generation, 
     transmission, and distribution facilities; and
       ``(D) developing, constructing, and interconnecting 
     electric power transmission facilities with transmission 
     facilities owned and operated by a Federal power marketing 
     agency or an electric utility that provides open access 
     transmission service.
       ``(3) The Director may develop, in consultation with Indian 
     tribes, a formula for making grants under this section. The 
     formula may take into account the following--
       ``(A) the total number of acres of Indian land owned by an 
     Indian tribe;
       ``(B) the total number of households on the Indian tribe's 
     Indian land;
       ``(C) the total number of households on the Indian tribe's 
     Indian land that have no electricity service or are under-
     served; and
       ``(D) financial or other assets available to the Indian 
     tribe from any source.
       ``(4) In making a grant under paragraph (2), the Director 
     shall give priority to an application received from an Indian 
     tribe that is not served or is served inadequately by an 
     electric utility, as that term is defined in section 3(4) of 
     the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2602(4)), or by a person, State agency, or any other non-
     federal entity that owns or operates a local distribution 
     facility used for the sale of electric energy to an electric 
     consumer.
       ``(5) There are authorized to be appropriated to the 
     Department of Energy such sums as may be necessary to carry 
     out the purposes of this section.

[[Page S1274]]

       ``(6) The Secretary is authorized to promulgate such 
     regulations as the Secretary determines to be necessary to 
     carry out the provisions of this subsection.
       ``(c) Loan Guarantee Program.--
       ``(1) Authority.--The Secretary may guarantee not more than 
     90 percent of the unpaid principal and interest due on any 
     loan made to any Indian tribe for energy development, 
     including the planning, development, construction, and 
     maintenance of electrical generation plants, and for 
     transmission and delivery mechanisms for electricity produced 
     on Indian land. A loan guaranteed under this subsection shall 
     be made by--
       ``(A) a financial institution subject to the examination of 
     the Secretary; or
       ``(B) an Indian tribe, from funds of the Indian tribe, to 
     another Indian tribe.
       ``(2) Availability of appropriations.--Amounts appropriated 
     to cover the cost of loan guarantees shall be available 
     without fiscal year limitation to the Secretary to fulfill 
     obligations arising under this subsection.
       ``(3) Authorization of appropriations.--
       ``(A) There are authorized to be appropriated to the 
     Secretary such sums as may be necessary to cover the cost of 
     loan guarantees, as defined by section 502(5) of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a(5)).
       ``(B) There are authorized to be appropriated to the 
     Secretary such sums as may be necessary to cover the 
     administrative expenses related to carrying out the loan 
     guarantee program established by this subsection.
       ``(4) Limitation on amount.--The aggregate outstanding 
     amount guaranteed by the Secretary of Energy at any one time 
     under this subsection shall not exceed $2,000,000,000.
       ``(5) Regulations.--The Secretary is authorized to 
     promulgate such regulations as the Secretary determines to be 
     necessary to carry out the provisions of this subsection.
       ``(d) Indian Energy Preference.--(1) An agency or 
     department of the United States Government may give, in the 
     purchase of electricity, oil, gas, coal, or other energy 
     product or by-product, preference in such purchase to an 
     energy and resource production enterprise, partnership, 
     corporation, or other type of business organization majority 
     or wholly owned and controlled by a tribal government.
       ``(2) In implementing this subsection, an agency or 
     department shall pay no more than the prevailing market price 
     for the energy product or by-product and shall obtain no less 
     than existing market terms and conditions.
       ``(e) Effect on Other Laws.-- This section does not--
       ``(1) limit the discretion vested in an Administrator of a 
     Federal power marketing agency to market and allocate Federal 
     power, or
       ``(2) alter Federal laws under which a Federal power 
     marketing agency markets, allocates, or purchases power.''.

     SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

       Title II of the Department of Energy Organization Act is 
     amended by adding at the end the following:


             ``office of indian energy policy and programs.

       ``Sec. 217. (a) There is established within the Department 
     an Office of Indian Energy Policy and Programs. This Office 
     shall be headed by a Director, who shall be appointed by the 
     Secretary and compensated at the rate equal to that of level 
     IV of the Executive Schedule under section 5315 of Title 5, 
     United States Code.
       ``(b) The Director shall provide, direct, foster, 
     coordinate, and implement energy planning, education, 
     management, conservation, and delivery programs of the 
     Department that--
       ``(1) promote tribal energy efficiency and utilization;
       ``(2) modernize and develop, for the benefit of Indian 
     tribes, tribal energy and economic infrastructure related to 
     natural resource development and electrification;
       ``(3) preserve and promote tribal sovereignty and self 
     determination related to energy matters and energy 
     deregulation;
       ``(4) lower or stabilize energy costs; and
       ``(5) electrify tribal members' homes and tribal lands.
       ``(c) The Director shall carry out the duties assigned the 
     Secretary or the Director under title XXVI of the Energy 
     Policy Act of 1992 (25 U.S.C. 3501 et seq.).''.

     SEC. 403. CONFORMING AMENDMENTS.

       (a) Authorization of Appropriations.--Section 2603(c) of 
     the Energy Policy Act of 1992 (25 U.S.C. 3503(c)) is amended 
     to read as follows:
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out the purposes of this section.''.
       (b) Table of Contents.--The Table of Contents of the 
     Department of Energy Act is amended by inserting after the 
     item relating to section 216 the following new item:

``Sec. 217. Office of Indian Energy Policy and Programs.''.

       (c) Executive Schedule.--Section 5315 of title 5, United 
     States Code, is amended by inserting ``Director, Office of 
     Indian Energy Policy and Programs, Department of Energy.'' 
     after ``Inspector General, Department of Energy.''.

     SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.-

       (a) Definitions.--For purposes of this section:
       (1) Indian tribe.--The term ``Indian tribe'' means any 
     Indian tribe, band, nation, or other organized group or 
     community, which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians, except that such 
     term does not include any Regional Corporation as defined in 
     section 3(g) of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1602(g)).
       (2) Interested party.--The term ``interested party'' means 
     a person whose interests could be adversely affected by the 
     decision of an Indian tribe to grant a lease or right-of-way 
     pursuant to this section.
       (3) Petition.--The term ``petition'' means a written 
     request submitted to the Secretary for the review of an 
     action (or inaction) of the Indian tribe that is claimed to 
     be in violation of the approved tribal regulations;
       (4) Reservation.--The term ``reservation'' means--
       (A) with respect to a reservation in a State other than 
     Oklahoma, all land that has been set aside or that has been 
     acknowledged as having been set aside by the United States 
     for the use of an Indian tribe, the exterior boundaries of 
     which are more particularly defined in a final tribal treaty, 
     agreement, executive order, federal statute, secretarial 
     order, or judicial determination;
       (B) with respect to a reservation in the State of Oklahoma, 
     all land that is--
       (i) within the jurisdictional area of an Indian tribe, and
       (ii) within the boundaries of the last reservation of such 
     tribe that was established by treaty, executive order, or 
     secretarial order.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (6) Tribal lands.--The term ``tribal lands'' means any 
     tribal trust lands or other lands owned by an Indian tribe 
     that are within a reservation, or tribal trust lands located 
     contiguous thereto.
       (b) Leases Involving Generation, Transmission, Distribution 
     or Energy Processing Facilities.--An Indian tribe may grant a 
     lease of tribal land for electric generation, transmission, 
     or distribution facilities, or facilities to process or 
     refine renewable or nonrenewable energy resources developed 
     on tribal lands, and such leases shall not require the 
     approval of the Secretary if the lease is executed under 
     tribal regulations approved by the Secretary under this 
     subsection and the term of the lease does not exceed 30 
     years.
       (c) Rights-of-Way for Electric Generation, Transmission, 
     Distribution or Energy Processing Facilities.--An Indian 
     tribe may grant a right-of-way over tribal lands for a 
     pipeline or an electric transmission or distribution line 
     without separate approval by the Secretary, if--
       (1) the right-of-way is executed under and complies with 
     tribal regulations approved by the Secretary and the term of 
     the right-of-way does not exceed 30 years; and
       (2) the pipeline or electric transmission or distribution 
     line serves--
       (A) an electric generation, transmission or distribution 
     facility located on tribal land, or
       (B) a facility located on tribal land that processes or 
     refines renewable or nonrenewable energy resources developed 
     on tribal lands.
       (d) Renewals.--Leases or rights-of-way entered into under 
     this subsection may be renewed at the discretion of the 
     Indian tribe in accordance with the requirements of this 
     section.
       (e) Tribal Regulation Requirements.--
       (1) The Secretary shall have the authority to approve or 
     disapprove tribal regulations required under this subsection. 
     The Secretary shall approve such tribal regulations if they 
     are comprehensive in nature, including provisions that 
     address--
       (A) securing necessary information from the lessee or 
     right-of-way applicant;
       (B) term of the conveyance;
       (C) amendments and renewals;
       (D) consideration for the lease or right-of-way;
       (E) technical or other relevant requirements;
       (F) requirements for environmental review as set forth in 
     paragraph (3);
       (G) requirements for complying with all applicable 
     environmental laws; and
       (H) final approval authority.
       (2) No lease or right-of-way shall be valid unless 
     authorized in compliance with the approved tribal 
     regulations.
       (3) An Indian tribe, as a condition of securing Secretarial 
     approval as contemplated in paragraph (1), must establish an 
     environmental review process that includes the following--
       (A) an identification and evaluation of all significant 
     environmental impacts of the proposed action as compared to a 
     no action alternative;
       (B) identification of proposed mitigation;
       (C) a process for ensuring that the public is informed of 
     and has an opportunity to comment on the proposed action 
     prior to tribal approval of the lease or right-of-way; and
       (D) sufficient administrative support and technical 
     capability to carry out the environmental review process.
       (4) The Secretary shall review and approve or disapprove 
     the regulations of the Indian tribe within 180 days of the 
     submission of such regulations to the Secretary. Any 
     disapproval of such regulations by the Secretary shall be 
     accompanied by written documentation that sets forth the 
     basis for the

[[Page S1275]]

     disapproval. The 180-day period may be extended by the 
     Secretary after consultation with the Indian tribe.
       (5) If the Indian tribe executes a lease or right-of-way 
     pursuant to tribal regulations required under this 
     subsection, the Indian tribe shall provide the Secretary 
     with--
       (A) a copy of the lease or right-of-way document and all 
     amendments and renewals thereto; and
       (B) in the case of regulations or a lease or right-of-way 
     that permits payment to be made directly to the Indian tribe, 
     documentation of the payments sufficient to enable the 
     Secretary to discharge the trust responsibility of the United 
     States as appropriate under existing law.
       (6) The United States shall not be liable for losses 
     sustained by any party to a lease executed pursuant to tribal 
     regulations under this subsection, including the Indian 
     tribe.
       (7) (A) An interested party may, after exhaustion of tribal 
     remedies, submit, in a timely manner, a petition to the 
     Secretary to review the compliance of the Indian tribe with 
     any tribal regulations approved under this subsection. If 
     upon such review, the Secretary determines that the 
     regulations were violated, the Secretary may take such action 
     as may be necessary to remedy the violation, including 
     rescinding or holding the lease or right-of-way in abeyance 
     until the violation is cured. The Secretary may also rescind 
     the approval of the tribal regulations and reassume the 
     responsibility for approval of leases or rights-of-way 
     associated with the facilities addressed in this section.
       (B) If the Secretary seeks to remedy a violation described 
     in subparagraph (A), the Secretary shall--
       (i) make a written determination with respect to the 
     regulations that have been violated;
       (ii) provide the Indian tribe with a written notice of the 
     alleged violation together with such written determination; 
     and
       (iii) prior to the exercise of any remedy or the rescission 
     of the approval of the regulations involved and reassumption 
     of the lease or right-of-way approval responsibility, provide 
     the Indian tribe with a hearing and a reasonable opportunity 
     to cure the alleged violation.
       (C) The tribe shall retain all rights to appeal as provided 
     by regulations promulgated by the Secretary.
       (f) Agreements.--
       (1) Agreements between an Indian tribe and a business 
     entity that are directly associated with the development of 
     electric generation, transmission or distribution facilities, 
     or facilities to process or refine renewable or nonrenewable 
     energy resources developed on tribal lands, shall not 
     separately require the approval of the Secretary pursuant to 
     section 18 of title 25, United States Code, so long as the 
     activity that is the subject of the agreement has been the 
     subject of an environmental review process pursuant to 
     subsection (e) of this section.
       (2) The United States shall not be liable for any losses or 
     damages sustained by any party, including the Indian tribe, 
     that are associated with an agreement entered into under this 
     subsection.
       (g) Disclaimer.--Nothing in this section is intended to 
     modify or otherwise affect the applicability of any provision 
     of the Indian Mineral Leasing Act of 1938 (25 U.S.C. 396a-
     396g); Indian Mineral Development Act of 1982 (25 U.S.C. 
     2101-2108); Surface Mining Control and Reclamation Act of 
     1977 (30 U.S.C. 1201-1328); any amendments thereto; or any 
     other laws not specifically addressed in this section.

     SEC. 405. INDIAN MINERAL DEVELOPMENT ACT REVIEW.

       (a) In General.--The Secretary of the Interior shall 
     conduct a review of the activities that have been conducted 
     by the governments of Indian tribes under the authority of 
     the Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
     seq.).
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Indian Affairs and the Committee on Energy 
     and Natural Resources of the Senate a report containing:
       (1) the results of the review;
       (2) recommendations designed to help ensure that Indian 
     tribes have the opportunity to develop their nonrenewable 
     energy resources; and
       (3) an analysis of the barriers to the development of 
     energy resources on Indian land, including federal policies 
     and regulations, and make recommendations regarding the 
     removal of those barriers.
       (c) Consultation.--The Secretary shall consult with Indian 
     tribes on a government-to-government basis in developing the 
     report and recommendations as provided in this subsection.

     SEC. 406. RENEWABLE ENERGY STUDY.

       (a) In General.--Not later than 2 years after the date of 
     the enactment of this Act, and once every 2 years thereafter, 
     the Secretary of Energy shall transmit to the Committees on 
     Energy and Commerce and Resources of the House of 
     Representatives and the Committees on Energy and Natural 
     Resources and Indian Affairs of the Senate a report on energy 
     consumption and renewable energy development potential on 
     Indian land. The report shall identify barriers to the 
     development of renewable energy by Indian tribes, including 
     federal policies and regulations, and make recommendations 
     regarding the removal of such barriers.
       (b) Consultation.--The Secretary shall consult with Indian 
     tribes on a government-to-government basis in developing the 
     report and recommendations as provided in this section.

     SEC. 407. FEDERAL POWER MARKETING ADMINISTRATIONS.

       Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 
     3501) (as amended by section 201) is amended by adding the at 
     the end of the following:

     ``SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.

       ``(a) Definition of Administrator.--In this section, the 
     term `Administrator' means--
       ``(1) the Administrator of the Bonneville Power 
     Administration; or
       ``(2) the Administrator of the Western Area Power 
     Administration.
       ``(b) Assistance for Transmission Studies.--
       ``(1) Each Administrator may provide technical assistance 
     to Indian tribes seeking to use the high-voltage transmission 
     system for delivery of electric power. The costs of such 
     technical assistance shall be funded--
       ``(A) by the Administrator using non-reimbursable funds 
     appropriated for this purpose, or
       ``(B) by the Indian tribe.-
       ``(2) Priority for assistance for transmission studies.--In 
     providing discretionary assistance to Indian tribes under 
     paragraph (1), each Administrator shall give priority in 
     funding to Indian tribes that have limited financial 
     capability to conduct such studies.
       ``(c) Power Allocation Study.----
       ``(1) Not later than 2 years after the date of enactment of 
     this Act, the Secretary of Energy shall transmit to the 
     Committees on Energy and Commerce and Resources of the House 
     of Representatives and the Committees on Energy and Natural 
     Resources and Indian Affairs of the Senate a report on Indian 
     tribes' utilization of federal power allocations of the 
     Western Area Power Administration, or power sold by the 
     Southwestern Power Administration, and the Bonneville Power 
     Administration to or for the benefit of Indian tribes in 
     their service areas. The report shall identify--
       ``(A) the amount of power allocated to tribes by the 
     Western Area Power Administration, and how the benefit of 
     that power is utilized by the tribes;
       ``(B) the amount of power sold to tribes by other Power 
     Marketing Administrations; and
       ``(C) existing barriers that impede tribal access to and 
     utilization of federal power, and opportunities to remove 
     such barriers and improve the ability of the Power Marketing 
     Administration to facilitate the utilization of federal power 
     by Indian tribes.
       ``(2) The Power Marketing Administrations shall consult 
     with Indian tribes on a government-to-government basis in 
     developing the report provided in this section.
       ``(d) Authorization for Appropriation.--There are 
     authorized to be appropriated to the Secretary of Energy such 
     sums as may be necessary to carry out the purposes of this 
     section.''.

     SEC. 408. FEASIBILITY STUDY OF COMBINED WIND AND HYDROPOWER 
                   DEMONSTRATION PROJECT.

       (a) Study.--The Secretary of Energy, in coordination with 
     the Secretary of the Army and the Secretary of the Interior, 
     shall conduct a study of the cost and feasibility of 
     developing a demonstration project that would use wind energy 
     generated by Indian tribes and hydropower generated by the 
     Army Corps of Engineers on the Missouri River to supply 
     firming power to the Western Area Power Administration.
       (b) Scope of Study.--The study shall--
       (1) determine the feasibility of the blending of wind 
     energy and hydropower generated from the Missouri River dams 
     operated by the Army Corps of Engineers;
       (2) review historical purchase requirements and projected 
     purchase requirements for firming and the patterns of 
     availability and use of firming energy;
       (3) assess the wind energy resource potential on tribal 
     lands and projected cost savings through a blend of wind and 
     hydropower over a thirty-year period; and
       (4) include a preliminary interconnection study and a 
     determination of resource adequacy of the Upper Great Plains 
     Region of the Western Area Power Administration;
       (5) determine seasonal capacity needs and associated 
     transmission upgrades for integration of tribal wind 
     generation; and
       (6) include an independent tribal engineer as a study team 
     member.
       (c) Report.--The Secretary of Energy and Secretary of the 
     Army shall submit a report to Congress not later than one 
     year after the date of enactment of this title. The 
     Secretaries shall include in the report--
       (1) an analysis of the potential energy cost savings to the 
     customers of the Western Area Power Administration through 
     the blend of wind and hydropower;
       (2) an evaluation of whether a combined wind and hydropower 
     system can reduce reservoir fluctuation, enhance efficient 
     and reliable energy production and provide Missouri River 
     management flexibility;
       (3) recommendations for a demonstration project which the 
     Western Area Power Administration could carry out in 
     partnership with an Indian tribal government or tribal 
     government energy consortium to demonstrate the feasibility 
     and potential of using wind energy produced on Indian lands

[[Page S1276]]

     to supply firming energy to the Western Area Power 
     Administration or other Federal power marketing agency; and
       (4) an identification of the economic and environmental 
     benefits to be realized through such a federal-tribal 
     partnership and identification of how such a partnership 
     could contribute to the energy security of the United States.
       (d) Consultation.--The Secretary shall consult with Indian 
     tribes on a government-to-government basis in developing the 
     report and recommendations provided in this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated $500,000 to carry out this section, which 
     shall remain available until expended. All costs incurred by 
     the Western Area Power Administration associated with 
     performing the tasks required under this section shall be 
     non-reimbursable.

                         TITLE V--NUCLEAR POWER

             Subtitle A--Price-Anderson Act Reauthorization

     SEC. 501. SHORT TITLE.

       This subtitle may be cited as the ``Price-Anderson 
     Amendments Act of 2002''.

     SEC. 502. EXTENSION OF DEPARTMENT OF ENERGY INDEMNIFICATION 
                   AUTHORITY.

       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,''.

     SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.

       (a) Indemnification of Department of Energy Contractors.--
     Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) In 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 paragraph (3) and inserting the following:
       ``(3) All agreements of indemnification under which the 
     Department of Energy (or its predecessor agencies) may be 
     required to indemnify any person under this section shall be 
     deemed to be amended, on the date of the enactment of the 
     Price-Anderson Amendments Act of 2002, to reflect the amount 
     of indemnity for public liability and any applicable 
     financial protection required of the contractor under this 
     subsection.''.
       (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended by 
     striking ``paragraph (3)'' and inserting ``paragraph 
     (2)(B)''.

     SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.

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

     SEC. 505. 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. 506. INFLATION ADJUSTMENT.

       Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210 (t)) is amended--
       (1) by renumbering paragraph (2) as paragraph (3); and
       (2) by adding after paragraph (1) the following:
       ``(2) The Secretary shall adjust the amount of 
     indemnification provided under an agreement of 
     indemnification under subsection d. not less than once during 
     each 5-year period following July 1, 2002, 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 paragraph; or
       ``(B) the previous adjustment under this paragraph.''.

     SEC. 507. CIVIL PENALTIES.

       (a) Repeal of Automatic Remission.--Section 234A b.(2) of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282a (b)(2)) is 
     amended by striking the last sentence.
       (b) Limitation for Not-For-Profit Institutions.--Subsection 
     d. of section 234A of the Atomic Energy Act of 1954 (42 
     U.S.C. 2282a(d)) is amended to read as follows:
       ``d. (1) Notwithstanding subsection a., a civil penalty for 
     a violation under subsection a. shall not exceed the amount 
     of the fee paid under the contract under which such violation 
     occurs for any not-for-profit contractor, subcontractor, or 
     supplier.
       ``(2) For purposes of this section, the term `not-for-
     profit' means that no part of the net earnings of the 
     contractor, subcontractor, or supplier inures, or may 
     lawfully inure, to the benefit of any natural person or for-
     profit artificial person.''.
       (c) Effective Date.--The amendments made by this section 
     shall not apply to any violation of the Atomic Energy Act of 
     1954 occurring under a contract entered into before the date 
     of enactment of this section.

     SEC. 508. EFFECTIVE DATE.

       The amendments made by sections 503(a) and 504 shall not 
     apply to any nuclear incident that occurs before the date of 
     the enactment of this subtitle.

                  Subtitle B--Miscellaneous Provisions

     SEC. 511. URANIUM SALES.

       (a) Inventory Sales.--Section 3112(d) of the USEC 
     Privatization Act (42 U.S.C. 2297h-10(d)) is amended to read 
     as follows:
       ``(d) Inventory Sales.--(1) In addition to the transfers 
     authorized under subsections (b), (c), and (e), the Secretary 
     may, from time to time, sell or transfer uranium (including 
     natural uranium concentrates, natural uranium hexafluoride, 
     enriched uranium, and depleted uranium) from the Department 
     of Energy's stockpile.
       ``(2) Except as provided in subsections (b), (c), and (e), 
     the Secretary may not deliver uranium in any form for 
     consumption by end users in any year in excess of the 
     following amounts:

                ``Annual Maximum Deliveries to End Users

(million lbs. U3O8 equivalent)
    2003 through 2009-..............................................  3

    2010-...........................................................  5

    2011-...........................................................  5

    2012-...........................................................  7

    2013 and each year thereafter-..................................10.

       ``(3) Except as provided in subsections (b), (c), and (e), 
     no sale or transfer of uranium in any form shall be made 
     unless--
       ``(A) the President determines that the material is not 
     necessary for national security needs;
       ``(B) the Secretary determines, based on the written views 
     of the Secretary of State and the Assistant to the President 
     for National Security Affairs, that the sale or transfer will 
     not adversely affect the national security interests of the 
     United States;
       ``(C) the Secretary determines that the sale of the 
     material will not have an adverse material impact on the 
     domestic uranium mining, conversion, or enrichment industry, 
     taking into account the sales of uranium under the Russian 
     HEU Agreement and the Suspension Agreement; and
       ``(D) the price paid to the Secretary will not be less than 
     the fair market value of the material.''.
       (b) Exempt Transfers and Sales.--Section 3112(e) of the 
     USEC Privatization Act (42 U.S.C. 2297h-10(e)) is amended to 
     read as follows:
       ``(e) Exempt Sales or Transfers.--Notwithstanding 
     subsection (d)(2), the Secretary may transfer or sell 
     uranium--
       ``(1) to the Tennessee Valley Authority for use pursuant to 
     the Department of Energy's highly enriched uranium or tritium 
     program, to the extent provided by law;
       ``(2) to research and test reactors under the University 
     Reactor Fuel Assistance and Support Program or the Reduced 
     Enrichment for Research and Test Reactors Program;
       ``(3) to USEC Inc. to replace contaminated uranium received 
     from the Department of Energy when the United States 
     Enrichment Corporation was privatized;
       ``(4) to any person for emergency purposes in the event of 
     a disruption in supply to end users in the United States; and
       ``(5) to any person for national security purposes, as 
     determined by the Secretary.''.

     SEC. 512. REAUTHORIZATION OF THORIUM REIMBURSEMENT.

       (a) Reimbursement of Thorium Licensees.-- Section 
     1001(b)(2)(C) of the Energy Policy Act of 1992 (42 U.S.C. 
     2296a) is amended--
       (1) by striking ``$140,000,000'' and inserting 
     ``$365,000,000''; and
       (2) by adding at the end the following: ``Such payments 
     shall not exceed the following amounts:
       ``(i) $90,000,000 in fiscal year 2002.
       ``(ii) $55,000,000 in fiscal year 2003.
       ``(iii) $20,000,000 in fiscal year 2004.
       ``(iv) $20,000,000 in fiscal year 2005.
       ``(v) $20,000,000 in fiscal year 2006.
       ``(vi) $20,000,000 in fiscal year 2007.
     Any amounts authorized to be paid in a fiscal year under this 
     subparagraph that are not paid in that fiscal year may be 
     paid in subsequent fiscal years.''.
       (b) Authorization of Appropriations.--Section 1003(a) of 
     the Energy Policy Act of 1992 (42 U.S.C. 2296a-2) is amended 
     by striking ``$490,000,000'' and inserting ``$715,000,000''.
       (c) Decontamination and Decommissioning Fund.--Section 
     1802(a) of the Atomic Energy Act of 1954 (42 U.S.C. 2297g-
     1(a)) is amended--
       (1) by striking ``$488,333,333'' and inserting 
     ``$518,233,333 ''; and
       (2) by inserting after ``inflation'' the following: 
     ``beginning on the date of enactment of the Energy Policy Act 
     of 1992''.

     SEC. 513. FAST FLUX TEST FACILITY.

       The Secretary of Energy shall not reactivate the Fast Flux 
     Test Facility to conduct--
       (1) any atomic energy defense activity,
       (2) any space-related mission, or
       (3) any program for the production or utilization of 
     nuclear material if the Secretary has determined, in a record 
     of decision, that

[[Page S1277]]

     the program can be carried out at existing operating 
     facilities.

     DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE VI--OIL AND GAS PRODUCTION

     SEC. 601. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC 
                   PETROLEUM RESERVE.

       (a) Amendment to Title I of the Energy Policy and 
     Conservation Act.--Title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6211 et seq.) is amended--
       (1) by striking section 166 (42 U.S.C. 6246) and 
     inserting--
       ``Sec. 166. There are authorized to be appropriated to the 
     Secretary such sums as may be necessary to carry out this 
     part, to remain available until expended.''; and
       (2) by striking part E (42 U.S.C. 6251; relating to the 
     expiration of title I of the Act) and its heading.
       (b) Amendment to Title II of the Energy Policy and 
     Conservation Act.--Title II of the Energy Policy and 
     Conservation Act (42 U.S.C. 6271 et seq.) is amended--
       (1) by striking section 256(h) (42 U.S.C. 6276(h)) and 
     inserting--
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     may be necessary to carry out this part, to remain available 
     until expended.''.
       (2) by striking section 273(e) (42 U.S.C. 6283(e); relating 
     to the expiration of summer fill and fuel budgeting 
     programs); and
       (3) by striking part D (42 U.S.C. 6285; relating to the 
     expiration of title II of the Act) and its heading.
       (c) Technical Amendments.--The table of contents for the 
     Energy Policy and Conservation Act is amended by striking the 
     items relating to part D of title I and part D of title II.

     SEC. 602. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.

       (a) Timely Action on Leases and Permits.--To ensure timely 
     action on oil and gas leases and applications for permits to 
     drill on lands otherwise available for leasing, the Secretary 
     of the Interior shall--
       (1) ensure expeditious compliance with the requirements 
     section 102(2)(C) of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4332(2)(C));
       (2) improve consultation and coordination with the States;
       (3) improve the collection, storage, and retrieval of 
     information related to such leasing activities; and
       (4) improve inspection and enforcement activities related 
     to oil and gas leases.
       (b) Authorization of Appropriations.--For the purpose of 
     carrying out paragraphs (1) through (4) of subsection (a), 
     there are authorized to be appropriated to the Secretary of 
     the Interior $60,000,000 for each of the fiscal years 2003 
     through 2006, in addition to amounts otherwise authorized to 
     be appropriated for the purpose of carrying out section 17 of 
     the Mineral Leasing Act (30 U.S.C. 226).

     SEC. 603. OIL AND GAS LEASE ACREAGE LIMITATIONS.

       Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 
     184(d)(1)) is amended by inserting after ``acreage held in 
     special tar sand areas'' the following: ``as well as acreage 
     under any lease any portion of which has been committed to a 
     Federally approved unit or cooperative plan or 
     communitization agreement, or for which royalty, including 
     compensatory royalty or royalty in kind, was paid in the 
     preceding calendar year,''.

     SEC. 604. ORPHANED AND ABANDONED WELLS ON FEDERAL LAND.

       (a) Establishment.--(1) The Secretary of the Interior, in 
     cooperation with the Secretary of Agriculture, shall 
     establish a program to ensure within three years after the 
     date of enactment of this Act, remediation, reclamation, and 
     closure of orphaned oil and gas wells located on lands 
     administered by the land management agencies within the 
     Department of the Interior and the U.S. Forest Service that 
     are--
       (A) abandoned;
       (B) orphaned; or
       (C) idled for more than 5 years and having no beneficial 
     use.
       (2) The program shall include a means of ranking critical 
     sites for priority in remediation based on potential 
     environmental harm, other land use priorities, and public 
     health and safety.
       (3) The program shall provide that responsible parties be 
     identified wherever possible and that the costs of 
     remediation be recovered.
       (4) In carrying out the program, the Secretary of the 
     Interior shall work cooperatively with the Secretary of 
     Agriculture and the states within which the federal lands are 
     located, and shall consult with the Secretary of Energy, and 
     the Interstate Oil and Gas Compact Commission.
       (b) Plan.--Within six months from the date of enactment of 
     this section, the Secretary of the Interior, in cooperation 
     with the Secretary of Agriculture, shall prepare a plan for 
     carrying out the program established under subsection (a). 
     Copies of the plan shall be transmitted to the Committee on 
     Energy and Natural Resources of the Senate and the Committee 
     on Resources of the House of Representatives.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Interior 
     $5,000,000 for each of fiscal years 2003 through 2005 to 
     carry out the activities provided for in this section.

     SEC. 605. ORPHANED AND ABANDONED OIL AND GAS WELL PROGRAM.

       (a) Establishment.--The Secretary of Energy shall establish 
     a program to provide technical assistance to the various oil 
     and gas producing states to facilitate state efforts over a 
     ten-year period to ensure a practical and economical remedy 
     for environmental problems caused by orphaned and abandoned 
     exploration or production well sites on state and private 
     lands. The Secretary shall work with the states, through the 
     Interstate Oil and Gas Compact Commission, to assist the 
     states in quantifying and mitigating environmental risks of 
     onshore abandoned and orphaned wells on state and private 
     lands.
       (b) Program Elements.--The program should include--
       (1) mechanisms to facilitate identification of responsible 
     parties wherever possible;
       (2) criteria for ranking critical sites based on factors 
     such as other land use priorities, potential environmental 
     harm and public visibility; and
       (3) information and training programs on best practices for 
     remediation of different types of sites.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy for the 
     activities under this section $5,000,000 for each of fiscal 
     years 2003 through 2005 to carry out the provisions of this 
     section.

     SEC. 606. OFFSHORE DEVELOPMENT.

       Section 5 of the Outer Continental Shelf Lands Act of 1953 
     (43 U.S.C. 1334) is amended by adding at the end the 
     following:
       ``(k) Suspension of Operations for Subsalt Exploration.--
     Notwithstanding any other provision of law or regulation, the 
     Secretary may grant a request for a suspension of operations 
     under any lease to allow the lessee to reprocess or 
     reinterpret geologic or geophysical data beneath 
     allocthonous salt sheets, when in the Secretary's judgment 
     such suspension is necessary to prevent waste caused by 
     the drilling of unnecessary wells, and to maximize 
     ultimate recovery of hydrocarbon resources under the 
     lease. Such suspension shall be limited to the minimum 
     period of time the Secretary determines is necessary to 
     achieve the objectives of this subsection.''.

     SEC. 607. COALBED METHANE STUDY.

       (a) Study.--The National Academy of Sciences shall conduct 
     a study on the effects of coalbed methane production on 
     surface and water resources.
       (b) Data Analysis.--The study shall analyze available 
     hydrogeologic and water quality data, along with other 
     pertinent environmental or other information to determine--
       (1) adverse effects associated with surface or subsurface 
     disposal of waters produced during extraction of coalbed 
     methane;
       (2) depletion of groundwater aquifers or drinking water 
     sources associated with production of coalbed methane;
       (3) any other significant adverse impacts to surface or 
     water resources associated with production of coalbed 
     methane; and
       (4) production techniques or other factors that can 
     mitigate adverse impacts from coalbed methane development.
       (c) Recommendations.--The study shall analyze existing 
     Federal and State laws and regulations, and make 
     recommendations as to changes, if any, to Federal law 
     necessary to address adverse impacts to surface or water 
     resources attributable to coalbed methane development.
       (d) Completion of Study.--The National Academy of Sciences 
     shall submit the study to the Secretary of the Interior 
     within 18 months after the date of enactment of this Act, and 
     shall make the study available to the public at the same 
     time.
       (e) Report to Congress.--The Secretary of the Interior 
     shall report to Congress within 6 months of her receipt of 
     the study on--
       (1) the findings and recommendations of the study;
       (2) the Secretary's agreement or disagreement with each of 
     its findings and recommendations; and
       (3) any recommended changes in funding to address the 
     effects of coalbed methane production on surface and water 
     resources.

     SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOVERY OF DOMESTIC 
                   OIL AND GAS RESOURCES.

       (a) Evaluation.--The Secretary of Energy, in coordination 
     with the Secretaries of the Interior, Commerce, and Treasury, 
     Indian tribes and the Interstate Oil and Gas Compact 
     Commission, shall evaluate the impact of existing Federal and 
     State tax and royalty policies on the development of domestic 
     oil and gas resources and on revenues to Federal, State, 
     local and tribal governments.
       (b) Scope.--The evaluation under subsection (a) shall--
       (1) analyze the impact of fiscal policies on oil and 
     natural gas exploration, development drilling, and production 
     under different price scenarios, including the impact of the 
     individual and corporate Alternative Minimum Tax, state and 
     local production taxes and fixed royalty rates during low 
     price periods;
       (2) assess the effect of existing federal and state fiscal 
     policies on investment under different geological and 
     developmental circumstances, including but not limited to 
     deepwater environments, subsalt formations, deep and deviated 
     wells, coalbed methane and other unconventional oil and gas 
     formations;
       (3) assess the extent to which federal and state fiscal 
     policies negatively impact the

[[Page S1278]]

      ultimate recovery of resources from existing fields and 
     smaller accumulations in offshore waters, especially in water 
     depths less than 800 meters, of the Gulf of Mexico;
       (4) compare existing federal and state policies with tax 
     and royalty regimes in other countries with particular 
     emphasis on similar geological, developmental and 
     infrastructure conditions; and
       (5) evaluate how alternative tax and royalty policies, 
     including counter-cyclical measures, could increase recovery 
     of domestic oil and natural gas resources and revenues to 
     Federal, State, local and tribal governments.
       (c) Policy Recommendations.--Based upon the findings of the 
     evaluation under subsection (a), a report describing the 
     findings and recommendations for policy changes shall be 
     provided to the President, the Congress, the Governors of the 
     member states of the Interstate Oil and Gas Compact 
     Commission, and Indian tribes having an oil and gas lease 
     approved by the Secretary of the Interior. The 
     recommendations should ensure that the public interest in 
     receiving the economic benefits of tax and royalty revenues 
     is balanced with the broader national security and economic 
     interests in maximizing recovery of domestic resources. The 
     report should include recommendations regarding actions to--
       (1) ensure stable development drilling during periods of 
     low oil and/or natural gas prices to maintain reserve 
     replacement and deliverability;
       (2) minimize the negative impact of a volatile investment 
     climate on the oil and gas service industry and domestic oil 
     and gas exploration and production;
       (3) ensure a consistent level of domestic activity to 
     encourage the education and retention of a technical 
     workforce; and
       (4) maintain production capability during periods of low 
     oil and/or natural gas prices.
       (d) Royalty Guidelines.--The recommendations required under 
     (c) should include guidelines for private resource holders as 
     to the appropriate level of royalties given geology, 
     development cost, and the national interest in maximizing 
     recovery of oil and gas resources.
       (e) Report.--The study under subsection (a) shall be 
     completed not later than 18 months after the date of 
     enactment of this section. The report and recommendations 
     required in (c) shall be transmitted to the President, the 
     Congress, Indian tribes, and the Governors of the member 
     States of the Interstate Oil and Gas Compact Commission.

     SEC. 609. STRATEGIC PETROLEUM RESERVE.

       (a) Full Capacity.--The President shall--
       (1) fill the Strategic Petroleum Reserve established 
     pursuant to part B of title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6231 et seq.) to full capacity as 
     soon as practicable;
       (2) acquire petroleum for the Strategic Petroleum Reserve 
     by the most practicable and cost-effective means, including 
     the acquisition of crude oil the United States is entitled to 
     receive in kind as royalties from production on Federal 
     lands; and
       (3) ensure that the fill rate minimizes impacts on 
     petroleum markets.
       (b) Recommendations.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Energy shall 
     submit to Congress a plan toB
       (1) eliminate any infrastructure impediments that may limit 
     maximum drawdown capability; and
       (2) determine whether the capacity of the Strategic 
     Petroleum Reserve on the date of enactment of this section is 
     adequate in light of the increasing consumption of petroleum 
     and the reliance on imported petroleum.

                    TITLE VII--NATURAL GAS PIPELINES

                Subtitle A--Alaska Natural Gas Pipeline

     SEC. 701. SHORT TITLE.

       This subtitle may be cited as the ``Alaska Natural Gas 
     Pipeline Act of 2002''.

     SEC. 702. FINDINGS.

       The Congress finds that:
       (1) Construction of a natural gas pipeline system from the 
     Alaskan North Slope to United States markets is in the 
     national interest and will enhance national energy security 
     by providing access to the significant gas reserves in Alaska 
     needed to meet the anticipated demand for natural gas.
       (2) The Commission issued a certificate of public 
     convenience and necessity for the Alaska Natural Gas 
     Transportation System, which remains in effect.

     SEC. 703. PURPOSES.

       The purposes of this subtitle are--
       (1) to expedite the approval, construction, and initial 
     operation of one or more transportation systems for the 
     delivery of Alaska natural gas to the contiguous United 
     States;
       (2) to ensure access to such transportation systems on an 
     equal and nondiscriminatory basis and to promote competition 
     in the exploration, development and production of Alaska 
     natural gas; and
       (3) to provide federal financial assistance to any 
     transportation system for the transport of Alaska natural gas 
     to the contiguous United States, for which an application for 
     a certificate of public convenience and necessity is filed 
     with the Commission not later than 6 months after the date of 
     enactment of this subtitle.

     SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND 
                   NECESSITY.

       (a) Authority of the Commission.--Notwithstanding the 
     provisions of the Alaska Natural Gas Transportation Act of 
     1976 (15 U.S.C. 719-719o), the Commission may, pursuant to 
     section 7(c) of the Natural Gas Act (15 U.S.C. 717f(c)), 
     consider and act on an application for the issuance of a 
     certificate of public convenience and necessity authorizing 
     the construction and operation of an Alaska natural gas 
     transportation project other than the Alaska Natural Gas 
     Transportation System.
       (b) Issuance of Certificate.--
       (1) The Commission shall issue a certificate of public 
     convenience and necessity authorizing the construction and 
     operation of an Alaska natural gas transportation project 
     under this section if the applicant has--
       (A) entered into a contract to transport Alaska natural gas 
     through the proposed Alaska natural gas transportation 
     project for use in the contiguous United States; and
       (B) satisfied the requirements of section 7(e) of the 
     Natural Gas Act (15 U.S.C. 717f(e)).
       (2) In considering an application under this section, the 
     Commission shall presume that--
       (A) a public need exists to construct and operate the 
     proposed Alaska natural gas transportation project; and
       (B) sufficient downstream capacity will exist to transport 
     the Alaska natural gas moving through such project to markets 
     in the contiguous United States.
       (c) Expedited Approval Process.--The Commission shall issue 
     a final order granting or denying any application for a 
     certificate of public and convenience and necessity under 
     section 7(c) of the Natural Gas Act (15 U.S.C. 717f(c)) and 
     this section not more than 60 days after the issuance of the 
     final environmental impact statement for that project 
     pursuant to section 704.
       (d) Reviews and Actions of Other Federal Agencies.--All 
     reviews conducted and actions taken by any federal officer or 
     agency relating to an Alaska natural gas transportation 
     project authorized under this section shall be expedited, in 
     a manner consistent with completion of the necessary reviews 
     and approvals by the deadlines set forth in this subtitle.
       (e) Regulations.--The Commission may issue regulations to 
     carry out the provisions of this section.

     SEC. 705. ENVIRONMENTAL REVIEWS.

       (a) Compliance With NEPA.--The issuance of a certificate of 
     public convenience and necessity authorizing the construction 
     and operation of any Alaska natural gas transportation 
     project under section 704 shall be treated as a major federal 
     action significantly affecting the quality of the human 
     environment within the meaning of section 102(2)(C) of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (b) Designation of Lead Agency.--The Commission shall be 
     the lead agency for purposes of complying with the National 
     Environmental Policy Act of 1969, and shall be responsible 
     for preparing the statement required by section 102(2)(c) of 
     that Act (42 U.S.C. 4332(2)(c)) with respect to an Alaska 
     natural gas transportation project under section 704. The  
     Commission shall prepare a single environmental statement 
     under this section, which shall consolidate the 
     environmental reviews of all Federal agencies considering 
     any aspect of the project.
       (c) Other Agencies.--All Federal agencies considering 
     aspects of the construction and operation of an Alaska 
     natural gas transportation project section 704 shall 
     cooperate with the Commission, and shall comply with 
     deadlines established by the Commission in the preparation of 
     the statement under this section. The statement prepared 
     under this section shall be used by all such agencies to 
     satisfy their responsibilities under section 102(2)(C) of the 
     National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)) with respect to such project.
       (d) Expedited Process.--The Commission shall issue a draft 
     statement under this section not later than 12 months after 
     the Commission determines the application to be complete and 
     shall issue the final statement not later than 6 months after 
     the Commission issues the draft statement, unless the 
     Commission for good cause finds that additional time is 
     needed.
       (e) Updated Environmental Reviews Under ANGTA.--The 
     Secretary of Energy shall require the sponsor of the Alaska 
     Natural Gas Transportation System to submit such updated 
     environmental data, reports, permits, and impact analyses as 
     the Secretary determines are necessary to develop detailed 
     terms, conditions, and compliance plans required by section 5 
     of the President's Decision.

     SEC. 706. FEDERAL COORDINATOR.

       (a) Establishment.--There is established as an independent 
     establishment in the executive branch, the Office of the 
     Federal Coordinator for Alaska Natural Gas Transportation 
     Projects.
       (b) The Federal Coordinator.--The Office shall be headed by 
     a Federal Coordinator for Alaska Natural Gas Transportation 
     Projects, who shall--
       (1) be appointed by the President, by and with the advice 
     of the Senate,
       (2) hold office at the pleasure of the President, and
       (3) be compensated at the rate prescribed for level III of 
     the Executive Schedule (5 U.S.C. 5314).
       (c) Duties.--The Federal Coordinator shall be responsible 
     for--
       (1) coordinating the expeditious discharge of all 
     activities by federal agencies with respect to an Alaska 
     natural gas transportation project; and

[[Page S1279]]

       (2) ensuring the compliance of Federal agencies with the 
     provisions of this subtitle.

     SEC. 707. JUDICIAL REVIEW.

       (a) Exclusive Jurisdiction.--The United States Court of 
     Appeals for the District of Columbia Circuit shall have 
     exclusive jurisdiction to determine--
       (1) the validity of any final order or action (including a 
     failure to act) of the Commission under this subtitle;-
       (2) the constitutionality of any provision of this 
     subtitle, or any decision made or action taken thereunder; or
       (3) the adequacy of any environmental impact statement 
     prepared under the National Environmental Policy Act of 1969 
     with respect to any action under this subtitle.
       (b) Deadline for Filing Claim.--Claims arising under this 
     subtitle may be brought not later than 60 days after the date 
     of the decision or action giving rise to the claim.

     SEC. 708. LOAN GUARANTEE.

       (a) Authority.-- The Secretary of Energy may guarantee not 
     more than 80 percent of the principal of any loan made to the 
     holder of a certificate of public convenience and necessity 
     issued under section 704(b) of this Act or section 9 of the 
     Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 
     719g) for the purpose of constructing an Alaska natural gas 
     transportation project.
       (b) Conditions.--
       (1) The Secretary of Energy may not guarantee a loan under 
     this section unless the guarantee has filed an application 
     for a certificate of public convenience and necessity under 
     section 704(b) of this Act or for an amended certificate 
     under section 9 of the Alaska Natural Gas Transportation Act 
     of 1976 (15 U.S.C. 719g) with the Commission not later than 6 
     months after the date of enactment of this subtitle.
       (2) A loan guaranteed under this section shall be made by a 
     financial institution subject to the examination of the 
     Secretary.
       (3) Loan requirements, including term, maximum size, 
     collateral requirements and other features shall be 
     determined by the Secretary.
       (c) Limitation on Amount.--Commitments to guarantee loans 
     may be made by the Secretary of Energy only to the extent 
     that the total loan principal, any part of which is 
     guaranteed, will not exceed $10,000,000,000.
       (d) Regulations.--The Secretary of Energy may issue 
     regulations to carry out the provisions of this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to cover the cost of loan guarantees, as defined by 
     section 502(5) of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a(5)).

     SEC. 709. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

       (a) Requirement of Study.--If no application for the 
     issuance of a certificate of public convenience and necessity 
     authorizing the construction and operation of an Alaska 
     natural gas transportation project has been filed with the 
     Commission within 6 months after the date of enactment of 
     this title, the Secretary of Energy shall conduct a study of 
     alternative approaches to the construction and operation of 
     the project.
       (b) Scope of Study.--The study shall consider the 
     feasibility of establishing a government corporation to 
     construct an Alaska natural gas transportation project, and 
     alternative means of providing federal financing and 
     ownership (including alternative combinations of government 
     and private corporate ownership) of the project.
       (c) Consultation.--In conducting the study, the Secretary 
     of Energy shall consult with the Secretary of the Treasury 
     and the Secretary of the Army (acting through the Commanding 
     General of the Corps of Engineers).
       (d) Report.--If the Secretary of Energy is required to 
     conduct a study under subsection (a), he shall submit a 
     report containing the results of the study, his 
     recommendations, and any proposals for legislation to 
     implement his recommendations to the Congress within 6 months 
     after  the expiration of the Secretary of Energy's authority 
     to guarantee a loan under section 708.

     SEC. 710. SAVINGS CLAUSE.

       Nothing in this subtitle affects any decision, certificate, 
     permit, right-of-way, lease, or other authorization issued 
     under section 9 of the Alaska Natural Gas Transportation Act 
     of 1976 (15 U.S.C. 719g).

     SEC. 711. CLARIFICATION OF AUTHORITY TO AMEND TERMS AND 
                   CONDITIONS TO MEET CURRENT PROJECT 
                   REQUIREMENTS.

       Any Federal officer or agency responsible for granting or 
     issuing any certificate, permit, right-of-way, lease, or 
     other authorization under section 9 of the Alaska Natural Gas 
     Transportation Act of 1976 (15 U.S.C. 719g) may add to, 
     amend, or abrogate any term or condition included in such 
     certificate, permit, right-of-way, lease, or other 
     authorization to meet current project requirements (including 
     the physical design, facilities, and tariff specifications), 
     so long as such action does not compel a change in the basic 
     nature and general route of the Alaska Natural Gas 
     Transportation System as designated and described in section 
     2 of the President's Decision, or would otherwise prevent or 
     impair in any significant respect the expeditious 
     construction and initial operation of such transportation 
     system.

     SEC. 712. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``Alaska natural gas'' has the meaning given 
     such term by section 4(1) of the Alaska Natural Gas 
     Transportation Act of 1976 (15 U.S.C. 719b(1)).
       (2) The term ``Alaska natural gas transportation project'' 
     means any other natural gas pipeline system that carries 
     Alaska natural gas from the North Slope of Alaska to the 
     border between Alaska and Canada (including related 
     facilities subject to the jurisdiction of the Commission) 
     that is authorized under either--
       (A) the Alaska Natural Gas Transportation Act of 1976 (15 
     U.S.C. 719-719o); or
       (B) section 704 of this subtitle.
       (3) The term ``Alaska Natural Gas Transportation System'' 
     means the Alaska natural gas transportation project 
     authorized under the Alaska Natural Gas Transportation Act of 
     1976 and designated and described in section 2 of the 
     President's Decision.
       (4) The term ``Commission'' means the Federal Energy 
     Regulatory Commission.
       (5) The term ``natural gas company'' means a person engaged 
     in the transportation of natural gas in interstate commerce 
     or the sale in interstate commerce of such gas for resale; 
     and
       (6) The term ``President's Decision'' means the Decision 
     and Report to Congress on the Alaska Natural Gas 
     Transportation system issued by the President on September 
     22, 1977 pursuant to section 7 of the Alaska Natural Gas 
     Transportation Act of 1976 (15 U.S.C. 719c) and approved by 
     Public Law 95-158.

     SEC. 713. SENSE OF THE SENATE.

       It is the sense of the Senate that an Alaska natural gas 
     transportation project will provide significant economic 
     benefits to the United States and Canada. In order to 
     maximize those benefits, the Senate urges the sponsors of the 
     pipeline project to make every effort to use steel that is 
     manufactured or produced in North America and to negotiate a 
     project labor agreement to expedite construction of the 
     pipeline.

                    Subtitle B--Operating Pipelines

     SEC. 721. APPLICATION OF HISTORIC PRESERVATION ACT TO 
                   OPERATING PIPELINES.

       Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) is 
     amended by adding at the end the following:
       ``(i)(1) Notwithstanding the National Historic Preservation 
     Act (16 U.S.C. 470 et seq.), a transportation facility shall 
     not be eligible for inclusion on the National Register of 
     Historic Places unless--
       ``(A) the Commission has permitted the abandonment of the 
     transportation facility pursuant to subsection (b), or
       ``(B) the owner of the facility has given written consent 
     to such eligibility.
       ``(2) Any transportation facility considered eligible for 
     inclusion on the National Register of Historic Places prior 
     to the date of enactment of this subsection shall no longer 
     be eligible unless the owner of the facility gives written 
     consent to such eligibility.''.

     SEC. 722. ENVIRONMENTAL REVIEW AND PERMITTING OF NATURAL GAS 
                   PIPELINE PROJECTS.

       (a) Interagency Review.--The Chairman of the Council on 
     Environmental Quality, in coordination with the Federal 
     Energy Regulatory Commission, shall establish an interagency 
     task force to develop an interagency memorandum of 
     understanding to expedite the environmental review and 
     permitting of natural gas pipeline projects.
       (b) Membership of Interagency Task Force.--The task force 
     shall consist of--
       (1) the Chairman of the Council on Environmental Quality, 
     who shall serve as the Chairman of the interagency task 
     force,
       (2) the Chairman of the Federal Energy Regulatory 
     Commission,
       (3) the Director of the Bureau of Land Management,
       (4) the Director of the U.S. Fish and Wildlife Service,
       (5) the Commanding General, U.S. Army Corps of Engineers,
       (6) the Chief of the Forest Service,
       (7) the Administrator of the Environmental Protection 
     Agency,
       (8) the Chairman of the Advisory Council on Historic 
     Preservation, and
       (9) the heads of such other agencies as the Chairman of the 
     Council on Environmental Quality and the Chairman of the 
     Federal Energy Regulatory Commission deem appropriate.
       (c) Memorandum of Understanding.--The agencies represented 
     by the members of the interagency task force shall enter into 
     the memorandum of understanding not later than one year after 
     the date of the enactment of this section.

    DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                     TITLE VIII--FUELS AND VEHICLES

             Subtitle A--CAFE Standards and Related Matters

     SEC. 801. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

       (a) Increased Standards.--Section 32902 of title 49, United 
     States Code, is amended--
       (1) by striking ``Non-Passenger Automobiles.--'' in 
     subsection (a) and inserting ``Prescription of Standards by 
     Regulation.--''; and
       (2) by striking ``(except passenger automobiles)'' in 
     subsection (a) and inserting ``(except passenger automobiles 
     and light trucks)'';
       (3) by striking subsection (b) and inserting the following:
       ``(b) Standards for Passenger Automobiles and Light 
     Trucks.--

[[Page S1280]]

       ``(1) In general.--The Secretary of Transportation, after 
     consultation with the Administrator of the Environmental 
     Protection Agency, shall prescribe average fuel economy 
     standards for passenger automobiles and light trucks 
     manufactured by a manufacturer in each model year beginning 
     with model year 2005 in order to achieve a combined average 
     fuel economy standard for passenger automobiles and light 
     trucks for model year 2013 of at least 35 miles per gallon.
       ``(2) Annual progress toward standard required.--In 
     prescribing average fuel economy standards under paragraph 
     (1), the Secretary shall prescribe appropriate annual fuel 
     economy standard increases for passenger automobiles and 
     light trucks that--
       ``(A) increase the applicable average fuel economy standard 
     ratably over the 9 model-year period beginning with model 
     year 2005 and ending with model year 2013;
       ``(B) require that each manufacturer achieve--
       ``(i) a fuel economy standard for passenger automobiles 
     manufactured by that manufacturer of at least 33.2 miles per 
     gallon no later than model year 2010; and
       ``(ii) a fuel economy standard for light trucks 
     manufactured by that manufacturer of at least 26.3 miles per 
     gallon no later than model year 2010; and
       ``(C) for any model year within that 9 model-year period 
     does not result in an average fuel economy standard lower 
     than--
       ``(i) 27.5 miles per gallon for passenger automobiles; or
       ``(ii) 20.7 miles per gallon for light duty trucks.
       ``(3) Deadline for regulations.--The Secretary shall 
     promulgate the regulations required by paragraphs (1) and (2) 
     in final form no later than 18 months after the date of 
     enactment of the Energy Policy Act of 2002.
       ``(4) Default standards.--If the Secretary fails to meet 
     the requirement of paragraph (3), the average fuel economy 
     standard for passenger automobiles and light trucks 
     manufactured by a manufacturer in each model year beginning 
     with model year 2005 is the average fuel economy standard set 
     forth in the following tables:

The average fuel economy standard for passenger automobiles is:
28 miles per gallon....................................................
28.5 miles per gallon..................................................
30 miles per gallon....................................................
31 miles per gallon....................................................
32.5 miles per gallon..................................................
34 miles per gallon....................................................
35 miles per gallon....................................................
36.5 miles per gallon..................................................
38.3 miles per gallon -................................................

The average fuel economy standard for light trucks is:
21.5 miles per gallon..................................................
22.5 miles per gallon..................................................
23.5 miles per gallon..................................................
24.5 miles per gallon..................................................
26 miles per gallon....................................................
27.5 miles per gallon..................................................
29.5 miles per gallon..................................................
31 miles per gallon....................................................
32 miles per galloner -................................................

       ``(5) Combined standard for model years after model year 
     2010.--Unless the default standards under paragraph (4) are 
     in effect, for model years after model year 2010, the 
     Secretary may by rulemaking establish--
       ``(A) separate average fuel economy standards for passenger 
     automobiles and light trucks manufactured by a manufacturer; 
     or
       ``(B) a combined average fuel economy standard for 
     passenger automobiles and light trucks manufactured by a 
     manufacturer.'';
       (4) by striking ``the standard'' in subsection (c)(1) and 
     inserting ``a standard'';
       (5) by striking the first and last sentences of subsection 
     (c)(2); and
       (6) by striking ``(and submit the amendment to Congress 
     when required under subsection (c)(2) of this section)'' in 
     subsection (g).
       (b) Definition of Light Trucks.--
       (1) In general.--Section 32901(a) of title 49, United 
     States Code, is amended by adding at the end the following:
       ``(17) `light truck' means an automobile that the Secretary 
     decides by regulation--
       ``(A) is manufactured primarily for transporting not more 
     than 10 individuals;
       ``(B) is rated at not more than 10,000 pounds gross vehicle 
     weight;
       ``(C) is not a passenger automobile; and
       ``(D) does not fall within the exceptions from the 
     definition of `medium duty passenger vehicle' under section 
     86.1803-01 of title 40, Code of Federal Regulations.''.-
       ``(2) Deadline for regulations.--The Secretary of 
     Transportation--
       (A) shall issue proposed regulations implementing the 
     amendment made by paragraph (1) not later than 1 year after 
     the date of the enactment of this Act; and
       (B) shall issue final regulations implementing the 
     amendment not later than 18 months after the date of the 
     enactment of this Act.
       (3) Effective date.--Regulations prescribed under paragraph 
     (1) shall apply beginning with model year 2007.
       (c) Applicability of Existing Standards.--This section does 
     not affect the application of section 32902 of title 49, 
     United States Code, to passenger automobiles or non-passenger 
     automobiles manufactured before model year 2005.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation to 
     carry out the provisions of chapter 329 of title 49, United 
     States Code, $25,000,000 for each of fiscal years 2003 
     through 2015.

     SEC. 802. FUEL ECONOMY TRUTH IN TESTING.

       (a) In General.--Section 32907 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(c) Improved Testing Procedures.--
       ``(1) In general.--The Administrator of the Environmental 
     Protection Agency shall conduct--
       ``(A) an ongoing examination of the accuracy of fuel 
     economy testing of passenger automobiles and light trucks by 
     the Administrator performed in accordance with the procedures 
     in effect as of the date of enactment of the Energy Policy 
     Act of 2002 for the purpose of determining whether, and to 
     what extent, the fuel economy of passenger automobiles and 
     light trucks as tested by the Administrator differs from the 
     fuel economy reasonably to be expected from those automobiles 
     and trucks when driven by average drivers under average 
     driving conditions; and
       ``(B) an assessment of the extent to which fuel economy 
     changes during the life of passenger automobiles and light 
     trucks.''.
       ``(2) Report.--The Administrator of the Environmental 
     Protection Agency shall, within 12 months after the date of 
     enactment of the Energy Policy Act of 2002 and annually 
     thereafter, submit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Commerce of 
     the House of Representatives a report on the results of the 
     study required by paragraph (1). The report shall include--
       ``(A) a comparison between--
       ``(i) fuel economy measured, for each model in the 
     applicable model year, through testing procedures in effect 
     as of the date of enactment of the Energy Policy Act of 2002; 
     and
       ``(ii) fuel economy of such passenger automobiles and light 
     trucks during actual on-road performance, as determined under 
     that paragraph;
       ``(B) a statement of the percentage difference, if any, 
     between actual on-road fuel economy and fuel economy measured 
     by test procedures of the Environmental Protection 
     Administration; and
       ``(C) a plan to reduce, by model year 2015, the percentage 
     difference identified under subparagraph (B) by using uniform 
     test methods that reflect actual on-the-road fuel economy 
     consumers experience under normal driving conditions to no 
     greater than 5 percent.''.

     SEC. 803. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT 
                   TRUCKS.

       (a) In General.--The Secretary of Transportation shall 
     exercise such authority under Federal law as the Secretary 
     may have to ensure that--
       (1) passenger automobiles and light trucks (as those terms 
     are defined in section 32901 of title 49, United States Code) 
     are safe;
       (2) progress is made in improving the overall safety of 
     passenger automobiles and light trucks; and
       (3) progress is made in maximizing United States 
     employment.
       (b) Improved Crashworthiness.--Subchapter II of chapter 301 
     of title 49, United States Code, is amended by adding at the 
     end the following:

     ``Sec. 30128. Improved crashworthiness

       ``(a) Rollovers.--Within 3 years after the date of 
     enactment of the Energy Policy Act of 2002, the Secretary of 
     Transportation, through the National Highway Traffic Safety 
     Administration, shall prescribe a motor vehicle safety 
     standard under this chapter for rollover crashworthiness 
     standards that includes--
       ``(1) dynamic roof crush standards;
       ``(2) improved seat structure and safety belt design;
       ``(3) side impact head protection airbags; and
       ``(4) roof injury protection measures.
       ``(b) Heavy Vehicle Harm Reduction Compatibility 
     Standard.--
       ``(1) Within 3 years after the date of enactment of the 
     Energy Policy Act of 2002, the Secretary, through the 
     National Highway Traffic Safety Administration, shall 
     prescribe a federal motor vehicle safety standard under this 
     chapter that will reduce the aggressivity of light trucks by 
     30 percent, using a baseline of model year 2002, and will 
     improve vehicle compatibility in collisions between light 
     trucks and cars, in order to protect against unnecessary 
     death and injury.
       ``(2) The Secretary should review the effectiveness of this 
     standard every five years following final issuance of the 
     standard and shall issue, through the National Highway 
     Traffic Safety Administration, upgrades to the standard to 
     reduce fatalities and injuries related to vehicle 
     compatibility and light truck aggressivity.''.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     301 of title 49, United States Code, is amended by inserting 
     after the item relating to section 30127 the following: 
     ``30128. Improved crashworthiness''.

     SEC. 804. HIGH OCCUPANCY VEHICLE EXCEPTION.

       (a) In General.--Notwithstanding section 102(a)(1) of title 
     23, United States Code, a State may, for the purpose of 
     promoting energy conservation, permit a vehicle with fewer 
     than 2 occupants to operate in high occupancy vehicle lanes 
     if it is a hybrid vehicle or is certified by the Secretary of 
     Transportation, after consultation with the Administrator of 
     the Environmental Protection Agency, to be a vehicle that 
     runs only on an alternative fuel.

[[Page S1281]]

       (b) Hybrid Vehicle Defined.--In this section, the term 
     ``hybrid vehicle'' means a motor vehicle--
       (1) which--
       (A) draws propulsion energy from onboard sources of stored 
     energy which are both--
       (i) an internal combustion or heat engine using combustible 
     fuel; and
       (ii) a rechargeable energy storage system; or
       (B) recovers kinetic energy through regenerative braking 
     and provides at least 13 percent maximum power from the 
     electrical storage device;
       (2) which, in the case of a passenger automobile or light 
     truck--
       (A) for 2002 and later model vehicles, has received a 
     certificate of conformity under section 206 of the Clean Air 
     Act (42 U.S.C. 7525) and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) 
     for that make and model year; and
       (B) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets the Tier II emission 
     level established in regulations prescribed by the 
     Administrator of the Environmental Protection Agency under 
     section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for 
     that make and model year vehicle; and
       (3) which is made by a manufacturer.
       (c) Alternative Fuel Defined.--In this section, the term 
     ``alternative fuel'' has the meaning such term has under 
     section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(2)).

     SEC. 805. CREDIT TRADING PROGRAM.

       (a) In General.--Section 32903 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(g) Vehicle Credit Trading System.--
       ``(1) In general.--The Secretary of Transportation, with 
     technical assistance from the Administrator of the 
     Environmental Protection Agency, may establish a system under 
     which manufacturers with credits under this section may sell 
     those credits to other manufacturers or transfer them among a 
     manufacturer's fleets.
       ``(2) Purposes.--The purposes of the system are:
       ``(A) Reducing the adverse effects of inefficient 
     consumption of fuel by passenger automobiles and light 
     trucks.
       ``(B) Accelerating introduction of advanced technology 
     vehicles into use in the United States.
       ``(C) Encouraging manufacturers to exceed the average fuel 
     economy standards established by section 32902.
       ``(D) Reducing emissions of carbon dioxide by passenger 
     automobiles and light trucks.
       ``(E) Decreasing the United States' consumption of oil as 
     vehicular fuel.
       ``(F) Providing manufacturers flexibility in meeting the 
     average fuel economy standards established by section 32902.
       ``(G) Increasing consumer choice.
       ``(3) Program requirements.--The system established under 
     paragraph (1) shall--
       ``(A) make only credits accrued after the date of enactment 
     of the Energy Policy Act of 2002 eligible for transfer or 
     sale;
       ``(B) use techniques and methods that minimize reporting 
     costs for manufacturers;
       ``(C) provide for monitoring and verification of credit 
     purchases;
       ``(D) require participating manufacturers to report monthly 
     sales of vehicles to the Administrator of the Environmental 
     Protection Agency; and
       ``(E) make manufacturer-specific credit, transfer, sale, 
     and purchase information publicly available through annual 
     reports and monthly posting of transactions on the Internet.
       ``(4) Credits may be traded between passenger automobiles 
     and light trucks and between domestic and import fleets.--The 
     system shall provide that credits earned under this section--
       ``(A) with respect to passenger automobiles may be applied 
     with respect to light trucks;
       ``(B) with respect to light trucks may be applied with 
     respect to passenger automobiles;
       ``(C) with respect to passenger automobiles manufactured 
     domestically may be applied with respect to passenger 
     automobiles not manufactured domestically; and
       ``(D) with respect to passenger automobiles not 
     manufactured domestically may be applied with respect to 
     passenger automobiles manufactured domestically.
       ``(5) Report.--The Secretary and the Administrator shall 
     jointly submit an annual report to the Congress--
       ``(A) describing the effectiveness of the credits provided 
     by this subsection achieving the purposes described in 
     paragraph (2); and
       ``(B) setting forth a full accounting of all credits, 
     transfers, sales, and purchases for the most recent model 
     year for which data is available.''.
       (b) No Carryback of Credits.--Section 32903(a) of title 49, 
     United States Code, is amended--
       (1) by striking ``applied to--'' and inserting ``applied--
     '';
       (2) by inserting ``for model years before model year 2006, 
     to'' in paragraph (1) before ``any'';
       (3) by striking ``and'' after the semicolon in paragraph 
     (1);
       (4) by striking ``earned.'' in paragraph (2) and inserting 
     ``earned; and''; and
       (5) by adding at the end the following:
       ``(3) for model years after 2001, in accordance with the 
     vehicle credit trading system established under subsection 
     (g), to any of the 3 consecutive model years immediately 
     after the model year for which the credit was earned.''.
       (c) Use of Credit Value To Calculate Civil Penalty.--
     Section 32912(b) of title 49, United States Code, is 
     amended--
       (1) by inserting ``and is unable to purchase sufficient 
     credits under section 32903(g) to comply with the standard'' 
     after ``title'' the first place it appears; and
       (2) by striking all after ``penalty'' and inserting ``of 
     the greater of--
       ``(1) an amount determined by multiplying--
       ``(A) the number of credits necessary to enable the 
     manufacturer to meet that standard; by
       ``(B) 1.5 times the previous year's weighted average open 
     market price of a credit under section 32903(g); or
       ``(2) $5 multiplied by each 0.1 of a mile a gallon by which 
     the applicable average fuel economy standard under section 
     32902 exceeds the average fuel economy--
       ``(A) calculated under section 32904(a)(1)(A) or (B) for 
     automobiles to which the standard applied manufactured by the 
     manufacturer during the model year;
       ``(B) multiplied by the number of those automobiles; and
       ``(C) reduced by the credits available to the manufacturer 
     under section 32903 for the model year.''.
       (d) Conforming Amendments.--Section 32903 of title 49, 
     United States Code, is amended--
       (1) by inserting ``or light trucks'' after ``passenger 
     automobiles'' each place it appears in subsection (c);
       (2) by inserting after ``manufacturer.'' in subsection (d) 
     ``Credits earned with respect to passenger automobiles may be 
     used with respect to nonpassenger automobiles and light duty 
     trucks.''; and
       (3) by inserting after ``manufacturer.'' in subsection (e) 
     ``Credits earned with respect to non-passenger automobiles or 
     light trucks may be used with respect to passenger 
     automobiles.''.

     SEC. 806. GREEN LABELS FOR FUEL ECONOMY.

       Section 32908 of title 49, United States Code, is amended--
       (1) by striking ``title.'' in subsection (a)(1) and 
     inserting ``title, and a light truck (as defined in section 
     32901(17) after model year 2005; and'';
       (2) by redesignating subparagraph (F) of subsection (b)(1) 
     as subparagraph (H), and inserting after subparagraph (E) the 
     following:
       ``(F) a label (or a logo imprinted on a label required by 
     this paragraph) that--
       ``(i) reflects an automobile's performance on the basis of 
     criteria developed by the Administrator to reflect the fuel 
     economy and greenhouse gas and other emissions consequences 
     of operating the automobile over its likely useful life;
       ``(ii) permits consumers to compare performance results 
     under clause (i) among all passenger automobiles and light 
     duty trucks (as defined in section 32901) and with vehicles 
     in the vehicle class to which it belongs; and
       ``(iii) is designed to encourage the manufacture and sale 
     of passenger automobiles and light trucks that meet or exceed 
     applicable fuel economy standards under section 32902; and
       ``(G) a fuelstar under paragraph (5).''; and
       (3) by adding at the end of subsection (b) the following:
       ``(4) Green label program.--
       ``(A) Marketing analysis.--Within 2 years after the date of 
     enactment of the Energy Policy Act of 2002, the Administrator 
     shall complete a study of social marketing strategies with 
     the goal of maximizing consumer understanding of point-of-
     sale labels or logos described in paragraph (1)(F).
       ``(B) Criteria.--In developing criteria for the label or 
     logo, the Administrator shall also consider, among others as 
     appropriate, the following factors:
       ``(i) The amount of greenhouse gases that will be emitted 
     over the life-cycle of the automobile.
       ``(ii) The fuel economy of the automobile.
       ``(iii) The recyclability of the automobile.
       ``(iv) Any other pollutants or harmful byproducts related 
     to the automobile, which may include those generated during 
     manufacture of the automobile, those issued during use of the 
     automobile, or those generated after the automobile ceases to 
     be operated.
       ``(5) Fuelstar program.--The Secretary, in consultation 
     with the Administrator, shall establish a program, to be 
     known as the `fuelstar' program, under which stars shall be 
     imprinted on or attached to the label required by paragraph 
     (1) that will, consistent with the findings of the marketing 
     analysis required under subsection 4(A), provide consumer 
     incentives to purchase vehicles that exceed the applicable 
     fuel economy standard.

     SEC. 807. LIGHT TRUCK CHALLENGE.

       (a) In General.--The Secretary of Transportation shall 
     conduct an open competition for a project to demonstrate the 
     feasibility of multiple fuel hybrid electric vehicle 
     powertrains in sport utility vehicles and light trucks. The 
     Secretary shall execute a contract with the entity determined 
     by the Secretary to be the winner of the competition under 
     which the Secretary will provide $10,000,000 to that entity 
     in each of fiscal years 2003 and 2004 to carry out the 
     project.
       (b) Project Requirements.--Under the contract, the 
     Secretary shall require the entity to which the contract is 
     awarded to--
       (1) select a current model year production vehicle;

[[Page S1282]]

       (2) modify that vehicle so that it--
       (A) meets all existing vehicle performance characteristics 
     of the sport utility vehicle or light truck selected for the 
     project;
       (B) improves the vehicle's fuel economy rating by 50 
     percent or more (as measured by gasoline consumption); and
       (3) meet the requirements of paragraph (2) in such a way 
     that incorporation of the modification in the manufacturer's 
     production process would not increase the vehicle's 
     incremental production costs by more than 10 percent.
       (c) Eligible Entrants.--The competition conducted by the 
     Secretary shall be open to any entity, or consortium of 
     nongovernmental entities, educational institutions, and not-
     for-profit organizations, that--
       (1) has the technical capability and resources needed to 
     complete the project successfully; and
       (2) has sufficient financial resources in addition to the 
     contract amount, if necessary, to complete the contract 
     successfully.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $10,000,000 for each of fiscal years 2003 and 2004 to carry 
     out this section.

     SEC. 808. SECRETARY OF TRANSPORTATION TO CERTIFY BENEFITS.

       Beginning with model year 2005, the Secretary of 
     Transportation, in consultation with the Administrator of the 
     Environmental Protection Agency, shall determine and certify 
     annually to the Congress--
       (1) the annual reduction in United States consumption of 
     petroleum used for vehicle fuel, and
       (2) the annual reduction in greenhouse gas 
     emissions, properly attributable to the implementation of 
     the average fuel economy standards imposed under section 
     32902 of title 49, United States Code, as a result of the 
     amendments made by this Act.

     SEC. 809. DEPARTMENT OF TRANSPORTATION ENGINEERING AWARD 
                   PROGRAM.

       (a) Engineering Team Awards.--The Secretary of 
     Transportation shall establish an engineering award program 
     to recognize the engineering team of any manufacturer of 
     passenger automobiles or light trucks (as such terms are 
     defined in section 32901 of title 49, United States Code) 
     whose work directly results in production models of--
       (1) the first large sport utility vehicle, van, or light 
     truck to achieve a fuel economy rating of 30 miles per gallon 
     under section 32902 of such title;
       (2) the first mid-sized sport utility vehicle, van, or 
     light truck to achieve a fuel economy rating of 35 miles per 
     gallon under section 32902 of such title; and
       (3) the first small sport utility vehicle, van, or light 
     truck to achieve a fuel economy rating of 40 miles per gallon 
     under section 32902 of such title.
       (b) Manufacturer's Award.--The Secretary of Transportation 
     shall establish an Oil Independence Award to recognize the 
     first manufacturer of domestically-manufactured (within the 
     meaning of section 32903 of title 49, United States Code) 
     passenger automobiles and light trucks to achieve a combined 
     fuel economy rating of 37 miles per gallon under section 
     32902 of such title.
       (c) Requirements for Participation in Engineering Team 
     Awards Program.--In establishing the engineering team awards 
     program under subsection (a), the Secretary shall establish 
     eligibility requirements that include--
       (1) a requirement that the vehicle, van, or truck be 
     domestically-manufactured or manufacturable (if a prototype) 
     within the meaning of section 32903 of title 49, United 
     States Code;
       (2) a requirement that the vehicle, van, or truck meet all 
     applicable Federal standards for emissions and safety (except 
     that crash testing shall not be required for a prototype); 
     and
       (3) such additional requirements as the Secretary may 
     require in order to carry out the program.
       (d) Amount of Prize.--The Secretary shall award a prize of 
     not less than $10,000 to each engineering team determined by 
     the Secretary to have successfully met the requirements of 
     subsection (a)(1), (2), or (3). The Secretary shall provide 
     for recognition of any manufacturer to have met the 
     requirements of subsection (b) with appropriate ceremonies 
     and activities, and may provide a monetary award in an amount 
     determined by the Secretary to be appropriate.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation such 
     sums as may be necessary to carry out this section.

     SEC. 810. COOPERATIVE TECHNOLOGY AGREEMENTS.

       (a) In General.--The Secretary of Transportation, in 
     cooperation with the Administrator of the Environmental 
     Protection Agency, may execute a cooperative research and 
     development agreement with any manufacturer of passenger 
     automobiles or light trucks (as those terms are defined in 
     section 32901 of title 49, United States Code) to implement, 
     utilize, and incorporate in production government-developed 
     or jointly-developed fuel economy technology that will result 
     in improvements in the average fuel economy of any class of 
     vehicles produced by that manufacturer of at least 55 percent 
     greater than the average fuel economy of that class of 
     vehicles for model year 2000.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation and the 
     Administrator of the Environmental Protection Agency such 
     sums as may be necessary to carry out this section.

              Subtitle B--Alternative and Renewable Fuels

     SEC. 811. INCREASED USE OF ALTERNATIVE FUELS BY FEDERAL 
                   FLEETS.

       (a) Requirement To Use Alternative Fuels.--Section 
     400AA(a)(3)(E) of the Energy Policy and Conservation Act (42 
     U.S.C. 6374(a)(3)(E)) is amended to read as follows:
       ``(E) Dual fueled vehicles acquired pursuant to this 
     section shall be operated on alternative fuels. If the 
     Secretary determines that all dual fueled vehicles acquired 
     pursuant to this section cannot operate on alternative fuels 
     at all times, he may waive the requirement in part, but only 
     to the extent that:
       ``(i) not later than September 30, 2003, not less than 50 
     percent of the total annual volume of fuel used in such dual 
     fueled vehicles shall be from alternative fuels; and
       ``(ii) not later than September 30, 2005, not less than 75 
     percent of the total annual volume of fuel used in such dual 
     fueled vehicles shall be from alternative fuels.''.
       (b) Definition of ``Dedicated Vehicle''.--Section 
     400AA(g)(4)(B) of the Energy Policy and Conservation Act (42 
     U.S.C. 6374(g)(4)(B)) is amended by inserting after ``solely 
     on alternative fuel'' the following: ``, including a three-
     wheeled enclosed electric vehicle having a vehicle 
     identification number''.

     SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR 
                   ALTERNATIVE FUEL VEHICLES.

       Section 102(a)(1) of title 23, United States Code, is 
     amended by inserting after ``required'' the following: 
     ``(unless, in the discretion of the State transportation 
     department, the vehicle is being operated on, or is being 
     fueled by, an alternative fuel (as defined in section 301(2) 
     of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)))''.

     SEC. 813. DATA COLLECTION.

       Section 205 of the Department of Energy Organization Act 
     (42 U.S.C. 7135) is amended by adding at the end the 
     following:
       ``(m) In order to improve the ability to evaluate the 
     effectiveness of the Nation's renewable fuels mandate, the 
     Administrator shall conduct and publish the results of a 
     survey of renewable fuels consumption in the motor vehicle 
     fuels market in the United States monthly, and in a manner 
     designed to protect the confidentiality of individual 
     responses. In conducting the survey, the Administrator shall 
     collect information both on a national basis and a regional 
     basis, including--
       (1) the quantity of renewable fuels produced;
       (2) the cost of production;
       (3) the cost of blending and marketing;
       (4) the quantity of renewable fuels consumed;
       (5) the quantity of renewable fuels imported; and
       (6) market price data.

     SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.

       (a) Establishment.--The Secretary of Energy and the 
     Secretary of Transportation shall jointly establish a pilot 
     program for awarding grants on a competitive basis to 
     eligible entities for the demonstration and commercial 
     application of alternative fuel school buses and ultra-low 
     sulfur diesel school buses.
       (b) Requirements.--Not later than 3 months after the date 
     of the enactment of this Act, the Secretary shall establish 
     and publish in the Federal Register grant requirements on 
     eligibility for assistance, and on implementation of the 
     program established under subsection (a), including 
     certification requirements to ensure compliance with this 
     subtitle.
       (c) Solicitation.--Not later than 6 months after the date 
     of the enactment of this Act, the Secretary shall solicit 
     proposals for grants under this section.
       (d) Eligible Recipients.--A grant shall be awarded under 
     this section only--
       (1) to a local governmental entity responsible for 
     providing school bus service for one or more public school 
     systems; or
       (2) jointly to an entity described in paragraph (1) and a 
     contracting entity that provides school bus service to the 
     public school system or systems.
       (e) Types of Grants.--
       (1) In general.--Grants under this section shall be for the 
     demonstration and commercial application of technologies to 
     facilitate the use of alternative fuel school buses and 
     ultra-low sulfur diesel school buses instead of buses 
     manufactured before model year 1977 and diesel-powered buses 
     manufactured before model year 1991.
       (2) No economic benefit.--Other than the receipt of the 
     grant, a recipient of a grant under this section may not 
     receive any economic benefit in connection with the receipt 
     of the grant.
       (3) Priority of grant applications.--The Secretary shall 
     give priority to awarding grants to applicants who can 
     demonstrate the use of alternative fuel buses and ultra-low 
     sulfur diesel school buses instead of buses manufactured 
     before model year 1977.
       (f) Conditions of Grant.--A grant provided under this 
     section shall include the following conditions:
       (1) All buses acquired with funds provided under the grant 
     shall be operated as part of the school bus fleet for which 
     the grant was made for a minimum of 5 years.
       (2) Funds provided under the grant may only be used--

[[Page S1283]]

       (A) to pay the cost, except as provided in paragraph (3), 
     of new alternative fuel school buses or ultra-low sulfur 
     diesel school buses, including State taxes and contract fees; 
     and
       (B) to provide--
       (i) up to 10 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will only be available to the grant 
     recipient; and
       (ii) up to 15 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will be available to the grant 
     recipient and to other bus fleets.
       (3) The grant recipient shall be required to provide at 
     least the lesser of 15 percent of the total cost of each bus 
     received or $15,000 per bus.
       (4) In the case of a grant recipient receiving a grant to 
     demonstrate ultra-low sulfur diesel school buses, the grant 
     recipient shall be required to provide documentation to the 
     satisfaction of the Secretary that diesel fuel containing 
     sulfur at not more than 15 parts per million is available for 
     carrying out the purposes of the grant, and a commitment by 
     the applicant to use such fuel in carrying out the purposes 
     of the grant.
       (g) Buses.--Funding under a grant made under this section 
     may only be used to demonstrate the use of new alternative 
     fuel school buses or ultra-low sulfur diesel school buses 
     that--
       (1) have a gross vehicle weight greater than 14,000 pounds;
       (2) are powered by a heavy duty engine;
       (3) in the case of alternative fuel school buses, emit not 
     more than--
       (A) for buses manufactured in model year 2002, 2.5 grams 
     per brake horsepower-hour of nonmethane hydrocarbons and 
     oxides of nitrogen and .01 grams per brake horsepower-hour of 
     particulate matter; and
       (B) for buses manufactured in model years 2003 through 
     2006, 1.8 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (4) in the case of ultra-low sulfur diesel school buses, 
     emit not more than the lesser of--
       (A) the emissions of nonmethane hydrocarbons, oxides of 
     nitrogen, and particulate matter of the best performing 
     technology of the same class of ultra-low sulfur diesel 
     school buses commercially available at the time the grant is 
     made; or
       (B) the applicable following amounts--
       (i) for buses manufactured in model year 2002 or 2003, 3.0 
     grams per brake horsepower-hour of oxides of nitrogen and .01 
     grams per brake horsepower-hour of particulate matter; and
       (ii) for buses manufactured in model years 2004 through 
     2006, 2.5 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter.
       (h) Deployment and Distribution.--The Secretary shall seek 
     to the maximum extent practicable to achieve nationwide 
     deployment of alternative fuel school buses through the 
     program under this section, and shall ensure a broad 
     geographic distribution of grant awards, with a goal of no 
     State receiving more than 10 percent of the grant funding 
     made available under this section for a fiscal year.
       (i) Limit on Funding.--The Secretary shall provide not less 
     than 20 percent and not more than 25 percent of the grant 
     funding made available under this section for any fiscal year 
     for the acquisition of ultra-low sulfur diesel school buses.
       (j) Definitions.--For purposes of this section--
       (1) the term ``alternative fuel school bus'' means a bus 
     powered substantially by electricity (including electricity 
     supplied by a fuel cell), or by liquefied natural gas, 
     compressed natural gas, liquefied petroleum gas, hydrogen, 
     propane, or methanol or ethanol at no less than 85 percent by 
     volume; and
       (2) the term ``ultra-low sulfur diesel school bus'' means a 
     school bus powered by diesel fuel which contains sulfur at 
     not more than 15 parts per million.

     SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION 
                   PROGRAM.

       (a) Establishment of Program.--The Secretary shall 
     establish a program for entering into cooperative agreements 
     with private sector fuel cell bus developers for the 
     development of fuel cell-powered school buses, and 
     subsequently with not less than 2 units of local government 
     using natural gas-powered school buses and such private 
     sector fuel cell bus developers to demonstrate the use of 
     fuel cell-powered school buses.
       (b) Cost Sharing.--The non-Federal contribution for 
     activities funded under this section shall be not less than--
       (1) 20 percent for fuel infrastructure development 
     activities; and
       (2) 50 percent for demonstration activities and for 
     development activities not described in paragraph (1).
       (c) Funding.--No more than $25,000,000 of the amounts 
     authorized under section 815 may be used for carrying out 
     this section for the period encompassing fiscal years 2003 
     through 2006.
       (d) Reports to Congress.--Not later than 3 years after the 
     date of the enactment of this Act, and not later than October 
     1, 2006, the Secretary shall transmit to the appropriate 
     congressional committees a report that--
       (1) evaluates the process of converting natural gas 
     infrastructure to accommodate fuel cell-powered school buses; 
     and
       (2) assesses the results of the development and 
     demonstration program under this section.

     SEC. 816. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Energy for carrying out sections 814 and 815, to remain 
     available until expended--
       (1) $50,000,000 for fiscal year 2003;
       (2) $60,000,000 for fiscal year 2004;
       (3) $70,000,000 for fiscal year 2005; and
       (4) $80,000,000 for fiscal year 2006.

     SEC. 817. BIODIESEL FUEL USE CREDIT.

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

     SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.

       Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211) is amended--
       (1) by striking ``or a dual fueled vehicle'' and inserting 
     ``, a dual fueled vehicle, or a neighborhood electric 
     vehicle'';
       (2) by striking ``and'' at the end of paragraph (13);
       (3) by striking the period at the end of subparagraph (14) 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(15) the term `neighborhood electric vehicle' means a 
     motor vehicle that qualifies as both--
       ``(A) a low-speed vehicle, as such term is defined in 
     section 571.3(b) of title 49, Code of Federal Regulations; 
     and
       ``(B) a zero-emission vehicle, as such term is defined in 
     section 86.1703-99 of title 40, Code of Federal 
     Regulations.''.

            Subtitle C--Additional Fuel Efficiency Measures

     SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF 
                   AUTOMOBILES.

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

     ``Sec. 32917. Standards for executive agency automobiles

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

     SEC. 822. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-
                   INEFFICIENT MOTOR VEHICLES.

       (a) Establishment.--The Secretary shall establish a 
     program, to be known as the ``National Motor Vehicle 
     Efficiency Improvement Program.'' Under this program, the 
     Secretary shall provide grants to States to operate programs 
     to offer owners of passenger automobiles and light-duty 
     trucks manufactured in model years more than 15 years prior 
     to the fiscal year in which appropriations are made under 
     subsection (d) financial incentives to voluntarily--
       (1) scrap such automobiles and to replace them with 
     automobiles with higher fuel efficiency; or
       (2) repair such vehicles to improve their fuel economy.
       (b) State Plan.--Not later than 180 days after the date of 
     enactment of an appropriations act containing funds 
     authorized under subsection (d), to be eligible to receive 
     funds under the program, the Governor of a State shall submit 
     to the Secretary a plan to carry out a program under this 
     subtitle in that State.
       (c) Eligibility Criteria.--The Secretary shall approve a 
     State plan and provide the funds under subsection (d), if the 
     State plan--
       (1) for voluntary vehicle scrappage programs--

[[Page S1284]]

       (A) requires that all passenger automobiles and light-duty 
     trucks turned in be scrapped;
       (B) requires that prior to scrapping a vehicle, the state 
     provide public notification of the intent to scrap and allow 
     for the salvage of valuable parts from the vehicle;
       (C) requires that all passenger automobiles and light-duty 
     trucks turned in be currently registered in the State in 
     order to be eligible;
       (D) requires that all passenger automobiles and light-duty 
     trucks turned in be operational at the time that they are 
     turned in;
       (E) restricts automobile owners (except not-for-profit 
     organizations) from turning in more than one passenger 
     automobile and one light-duty truck in a 12-month period;
       (F) provides an appropriate payment to the person recycling 
     the scrapped passenger automobile or light-duty truck for 
     each turned-in passenger automobile or light-duty truck;
       (G) provides a minimum payment to the automobile owner for 
     each passenger automobile and light-duty truck turned in;
       (H) provides, in addition to the payment under subparagraph 
     (G), an additional credit that may be redeemed by the owner 
     of the turned-in passenger automobile or light-duty truck at 
     the time of purchase of new fuel-efficient automobile; and
       (I) estimates the fuel efficiency benefits of the program, 
     and reports the estimated results to the Secretary annually; 
     and
       (2) for voluntary vehicle repair programs--
       (A) requires the vehicle owner contribute at least 20 
     percent of the cost of the repairs;
       (B) sets a ceiling beyond which the vehicle owner is 
     responsible for the cost of repairs;
       (C) allows the vehicle owner to opt out of the program if 
     the cost of the repairs is considered to be too great; and
       (D) estimates the fuel economy benefits of the program and 
     reports the estimated results to the Secretary annually.
       (d) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated to the Secretary to carry out 
     this section such sums as may be necessary, to remain 
     available until expended.
       (e) Allocation Formula.--The amounts appropriated pursuant 
     to subsection (d) shall be allocated among the States on the 
     basis of the population of the States as contained in the 
     most recent reliable census data available from the Bureau of 
     the Census, Department of Commerce, for all States at the 
     time that the Secretary needs to compute shares under this 
     subsection.
       (f) Definitions.--In this section:
       (1) Automobile.--The term ``automobile'' has the meaning 
     given such term in section 32901(3) of title 49, United 
     States Code.
       (2) Fuel-efficient automobile.--
       (A) The term ``fuel-efficient automobile'' means a 
     passenger automobile or a light-duty truck that has an 
     average fuel economy greater than the average fuel economy 
     standard prescribed pursuant to section 32902 of title 49, 
     United States Code, or other law, applicable to such 
     passenger automobile or light-duty truck.
       (B) The term ``average fuel economy'' has the meaning given 
     such term in section 32901(5) of title 49, United States 
     Code.
       (C) The term ``average fuel economy standard'' has the 
     meaning given such term in section 32901(6) of title 49, 
     United States Code.
       (D) The term ``fuel economy'' has the meaning given such 
     term in section 32901(10) of title 49, United States Code.
       (3) Light-duty truck.--The term ``light-duty truck'' means 
     an automobile that is not a passenger automobile. Such term 
     shall include a pickup truck, a van, or a four-wheel-drive 
     general utility vehicle, as those terms are defined in 
     section 600.002-85 of title 40, Code of Federal Regulations.
       (4) Passenger automobile.--The term ``passenger 
     automobile'' has the meaning given such term by section 
     32901(16) of title 49, United States Code.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (6) State.--The term ``State'' means any of the several 
     States and the District of Columbia.

     SEC. 823. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VEHICLES.

       Title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6291 et seq.) is amended by adding at the end the 
     following:


                    ``PART K--REDUCING TRUCK IDLING

     ``SEC. 400AAA. REDUCING TRUCK IDLING.

       ``(a) Study.--Not later than 18 months after the date of 
     enactment of this section, the Secretary shall, in 
     consultation with the Secretary of Transportation, commence a 
     study to analyze the potential fuel savings resulting from 
     long duration idling of main drive engines in heavy-duty 
     vehicles.
       ``(b) Regulations.--Upon completion of the study under 
     subsection (a), the Secretary may issue regulations requiring 
     the installation of idling reduction systems on all newly 
     manufactured heavy duty vehicles.
       ``(c) Definitions.--As used in this section:
       ``(1) The term `heavy-duty vehicle' means a vehicle that 
     has a gross vehicle weight rating greater than 8,500 pounds 
     and is powered by a diesel engine.
       ``(2) The term `idling reduction system' means a device or 
     system of devices used to reduce long duration idling of a 
     diesel engine in a vehicle.
       ``(3) The term `long duration idling' means the operation 
     of a main drive engine of a heavy-duty vehicle for a period 
     of more than 15 consecutive minutes when the main drive 
     engine is not engaged in gear, except that such term does not 
     include idling as a result of traffic congestion or other 
     impediments to the movement of a heavy-duty vehicle.
       ``(4) The term `vehicle' has the meaning given such term in 
     section 4 of title 1, United States Code.''.

   TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

      Subtitle A--Low Income Assistance and State Energy Programs

     SEC. 901. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION 
                   ASSISTANCE, AND STATE ENERGY GRANTS.

       ``(a) LIHEAP.--(1) Section 2602(b) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 
     by striking the first sentence and inserting the following: 
     ``There are authorized to be appropriated to carry out the 
     provisions of this title (other than section 2607A), 
     $3,400,000,000 for each of fiscal years 2003 through 2005.''.
       (2) Section 2602(e) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621(e)) is amended by 
     striking ``$600,000,000'' and inserting ``$1,000,000,000''.
       (3) Section 2609A(a) of the Low-Income Energy Assistance 
     Act of 1981 (42 U.S.C. 8628a(a)) is amended by striking ``not 
     more than $300,000'' and inserting: ``not more than 
     $750,000''.
       (b) Weatherization Assistance.--Section 422 of the Energy 
     Conservation and Production Act (42 U.S.C. 6872) is amended 
     by striking ``for fiscal years 1999 through 2003 such sums as 
     may be necessary.'' and inserting: ``$325,000,000 for fiscal 
     year 2003, $400,000,000 for fiscal year 2004, and 
     $500,000,000 for fiscal year 2005.''.

     SEC. 902. STATE ENERGY PROGRAMS.

       (a) State Energy Conservation Plans.--Section 362 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6322)) is 
     amended by adding at the end the following:
       ``(g) The Secretary shall, at least once every three years, 
     invite the Governor of each State to review and, if 
     necessary, revise the energy conservation plan of the State 
     submitted under subsection (b) or (e). Such reviews should 
     consider the energy conservation plans of other States within 
     the region, and identify opportunities and actions that may 
     be carried out in pursuit of common energy conservation 
     goals.''.
       (b) State Energy Conservation Goals.--Section 364 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6324) is 
     amended to read as follows:
       ``Sec. 364. Each State energy conservation plan with 
     respect to which assistance is made available under this part 
     on or after the date of enactment of the Energy Policy Act of 
     2002 shall contain a goal, consisting of an improvement of 25 
     percent or more in the efficiency of use of energy in the 
     State concerned in calendar year 2010 as compared to calendar 
     year 1990, and may contain interim goals.''.
       (c) State Energy Conservation Grants.--Section 365(f) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
     amended by striking ``for fiscal years 1999 through 2003 such 
     sums as may be necessary.'' and inserting: ``$100,000,000 for 
     each of fiscal years 2003 and 2004; $125,000,000 for fiscal 
     year 2005; and such sums as may be necessary for each fiscal 
     year thereafter.''.

     SEC. 903. ENERGY EFFICIENT SCHOOLS.

       (a) Establishment.--There is established in the Department 
     of Energy the High Performance Schools Program (in this 
     section referred to as the ``Program'').
       (b) Grants.--The Secretary of Energy may make grants to a 
     State energy office--
       (1) to assist school districts in the State to improve the 
     energy efficiency of school buildings;
       (2) to administer the Program; and
       (3) to promote participation in the Program.
       (c) Grants To Assist School Districts.--The Secretary shall 
     condition grants under subsection (b)(1) on the State energy 
     office using the grants to assist school districts that have 
     demonstrated--
       (1) a need for the grants to build additional school 
     buildings to meet increasing elementary or secondary 
     enrollments or to renovate existing school buildings; and
       (2) a commitment to use the grant funds to develop high 
     performance school buildings in accordance with a plan that 
     the State energy office, in consultation with the State 
     educational agency, has determined is feasible and 
     appropriate to achieve the purposes for which the grant is 
     made.
       (d) Grants for Administration.--Grants under subsection 
     (b)(2) shall be used to--
       (1) evaluate compliance by school districts with 
     requirements of this section;
       (2) distribute information and materials to clearly define 
     and promote the development of high performance school 
     buildings for both new and existing facilities;
       (3) organize and conduct programs for school board members, 
     school personnel, architects, engineers, and others to 
     advance the concepts of high performance school buildings;
       (4) obtain technical services and assistance in planning 
     and designing high performance school buildings; or
       (5) collect and monitor data and information pertaining to 
     the high performance school building projects.
       (e) Grants to Promote Participation.--Grants under 
     subsection (b)(3) shall be used for promotional and marketing 
     activities, including facilitating private and public 
     financing, promoting the use of energy savings performance 
     contracts, working with school administrations, students, and 
     communities, and coordinating public benefit programs.

[[Page S1285]]

       (f) Supplementing Grant Funds.--The State energy office 
     shall encourage qualifying school districts to supplement 
     funds awarded pursuant to this section with funds from other 
     sources in the implementation of their plans.
       (g) Allocations.--Except as provided in subsection (h), 
     funds appropriated to carry out this section shall be 
     allocated as follows:
       (1) 70 percent shall be used to make grants under 
     subsection (b)(1);
       (2) 15 percent shall be used to make grants under 
     subsection (b)(2); and
       (3) 15 percent shall be used to make grants under 
     subsection (b)(3).
       (h) Other Funds.--The Secretary of Energy may retain an 
     amount, not to exceed $300,000 per year, to assist State 
     energy offices in coordinating and implementing the Program. 
     Such funds may be used to develop reference materials to 
     further define the principles and criteria to achieve high 
     performance school buildings.
       (i) Authorization of Appropriations.--For grants under 
     subsection (b) there are authorized to be appropriated--
       (1) $200,000,000 for fiscal year 2003;
       (2) $210,000,000 for fiscal year 2004;
       (3) $220,000,000 for fiscal year 2005;
       (4) $230,000,000 for fiscal year 2006; and
       (5) such sums as may be necessary for fiscal year 2007 and 
     each fiscal year thereafter through fiscal year 2012.
       (j) Definitions.--For purposes of this section:
       (1) High performance school building.--The term ``high 
     performance school building'' means a school building that, 
     in its design, construction, operation, and maintenance--
       (A) maximizes use of renewable energy and energy-efficient 
     technologies and systems;
       (B) is cost-effective on a life-cycle basis;
       (C) achieves either--
       (i) the applicable Energy Star building energy performance 
     ratings, or
       (ii) energy consumption levels at least 30 percent below 
     those of the most recent version of ASHRAE Standard 90.1;
       (D) uses affordable, environmentally preferable, and 
     durable materials;
       (E) enhances indoor environmental quality;
       (F) protects and conserves water; and
       (G) optimizes site potential.
       (2) Renewable energy.--The term ``renewable energy'' means 
     energy produced by solar, wind, biomass, ocean, geothermal, 
     or hydroelectric power.
       (3) School.--The term ``school'' means--
       (A) an ``elementary school'' as that term is defined in 
     section 14101(14) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 8801(14)),
       (B) a ``secondary school'' as that term is defined in 
     section 14101(25) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 8801(25)), or
       (C) an elementary or secondary Indian school funded by the 
     Bureau of Indian Affairs.
       (4) State educational agency.--The term ``State educational 
     agency'' has the same meaning given such term in section 
     14101(28) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 8801(28)).
       (5) State energy office.--The term ``State energy office'' 
     means the State agency responsible for developing State 
     energy conservation plans under section 362 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6322), or, if no such 
     agency exists, a State agency designated by the Governor of 
     the State.

     SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT 
                   PROGRAM.

       (a) Grants.--The Secretary of Energy is authorized to make 
     grants to private, non-profit community development 
     organizations and Indian tribe economic development entities 
     to improve energy efficiency, identify and develop 
     alternative renewable and distributed energy supplies, and 
     increase energy conservation in low income rural and urban 
     communities.
       (b) Purpose of Grants.--The Secretary may make grants on a 
     competitive basis to a community development organization 
     for--
       (1) investments that develop alternative renewable and 
     distributed energy supplies;
       (2) energy efficiency projects and energy conservation 
     programs;
       (3) studies and other activities that improve energy 
     efficiency in low income rural and urban communities;
       (4) planning and development assistance for increasing the 
     energy efficiency of buildings and facilities; and
       (5) technical and financial assistance to local government 
     and private entities on developing new renewable and 
     distributed sources of power or combined heat and power 
     generation.
       (c) Definition.--For purposes of this section, the term 
     ``Indian tribe'' means any Indian tribe, band, nation, or 
     other organized group or community, including any Alaskan 
     Native Village or regional or village corporation as defined 
     in or established pursuant to the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.), which is recognized 
     as eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.
       (d) Authorization of Appropriations.--For the purposes of 
     this section there are authorized to be appropriated to the 
     Secretary of Energy an amount not to exceed $10 million for 
     fiscal year 2003 and each fiscal year thereafter through 
     fiscal year 2005.

                 Subtitle B--Federal Energy Efficiency

     SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.

       (a) Energy Reduction Goals.--Section 543(a)(1) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8253(a)(1)) is amended to read as follows:
       ``(1) Subject to paragraph (2), each agency shall apply 
     energy conservation measures to, and shall improve the design 
     for the construction of, the Federal buildings of the agency 
     (including each industrial or laboratory facility) so that 
     the energy consumption per gross square foot of the Federal 
     buildings of the agency in fiscal years 2002 through 2011 is 
     reduced, as compared with the energy consumption per gross 
     square foot of the Federal buildings of the agency in fiscal 
     year 2000, by the percentage specified in the following 
     table:
``Fiscal Year                                      Percentage reduction

0002-

                                                                      2
    2003-...........................................................  4
    2004............................................................  6
    2005............................................................  8
    2006-........................................................... 10
    2007-........................................................... 12
    2008-........................................................... 14
    2009-........................................................... 16
    2010-........................................................... 18
    2011.........................................................20.''.

       (b) Review and Revision of Energy Performance 
     Requirement.--Section 543(a) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253(a)) is further 
     amended by adding at the end the following:
       ``(3) Not later than December 31, 2010, the Secretary shall 
     review the results of the implementation of the energy 
     performance requirement established under paragraph (1) and 
     submit to Congress recommendations concerning energy 
     performance requirements for calendar years 2012 through 
     2021.''.
       (c) Exclusions.--Section 543(c)(1) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended to 
     read as follows:
       ``(1)(A) An agency may exclude, from the energy performance 
     requirement for a calendar year established under subsection 
     (a) and the energy management requirement established under 
     subsection (b), any Federal building or collection of Federal 
     buildings, if the head of the agency finds that--
       ``(i) compliance with those requirements would be 
     impracticable;
       ``(ii) the agency has completed and submitted all federally 
     required energy management reports;
       ``(iii) the agency has achieved compliance with the energy 
     efficiency requirements of this Act, the Energy Policy Act of 
     1992, Executives Orders, and other federal law; and
       ``(iv) the agency has implemented all practicable, life-
     cycle cost-effective projects with respect to the Federal 
     building or collection of Federal buildings to be excluded.
       ``(B) A finding of impracticability under subparagraph 
     (A)(i) shall be based on--
       ``(i) the energy intensiveness of activities carried out in 
     the Federal building or collection of Federal buildings; or
       ``(ii) the fact that the Federal building or collection of 
     Federal buildings is used in the performance of a national 
     security function.''.
       (d) Review by Secretary.--Section 543(c)(2) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is 
     amended--
       (1) by striking ``impracticability standards'' and 
     inserting ``standards for exclusion''; and
       (2) by striking ``a finding of impracticability'' and 
     inserting ``the exclusion''.
       (e) Criteria.--Section 543(c) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253(c)) is further 
     amended by adding at the end the following:
       ``(3) Not later than 180 days after the date of enactment 
     of this paragraph, the Secretary shall issue guidelines that 
     establish criteria for exclusions under paragraph (1).''.
       (f) Reports.--Section 548(b) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
       (1) in the subsection heading, by inserting ``The President 
     and'' before ``Congress''; and
       (2) by inserting ``President and'' before ``Congress''.
       (g) Conforming Amendment.--Section 550(d) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is 
     amended in the second sentence by striking ``the 20 percent 
     reduction goal established under section 543(a) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8253(a)).'' and inserting ``each of the energy reduction 
     goals established under section 543(a).''.

     SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is further amended by adding at the end the 
     following:
       ``(e) Metering of Energy Use.--
       ``(1) Deadline.--By October 1, 2004, all Federal buildings 
     shall be metered or submetered in accordance with guidelines 
     established by the Secretary under paragraph (2).
       ``(2) Guidelines.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary, in 
     consultation with the Department of Defense, the General 
     Service Administration and representatives from the metering 
     industry, energy services industry, national laboratories, 
     universities and federal facility energy managers, shall 
     establish guidelines for agencies to carry out paragraph (1).
       ``(B) Requirements for guidelines.--The guidelines shall--

[[Page S1286]]

       ``(i) take into consideration--

       ``(I) the cost of metering and submetering and the reduced 
     cost of operation and maintenance expected to result from 
     metering and submetering;
       ``(II) the extent to which metering and submetering are 
     expected to result in increased potential for energy 
     management, increased potential for energy savings and energy 
     efficiency improvement, and cost and energy savings due to 
     utility contract aggregation; and
       ``(III) the measurement and verification protocols of the 
     Department of Energy;

       ``(ii) include recommendations concerning the amount of 
     funds and the number of trained personnel necessary to gather 
     and use the metering information to track and reduce energy 
     use;
       ``(iii) establish 1 or more dates, not later than 1 year 
     after the date of issuance of the guidelines, on which the 
     requirement specified in paragraph (1) shall take effect; and
       ``(iv) establish exclusions from the requirement specified 
     in paragraph (1) based on the de minimus quantity of energy 
     use of a Federal building, industrial process, or structure.
       ``(f) Use of Energy Consumption Data in Federal 
     Buildings.--
       ``(1) In general.--Beginning not later than January 1, 
     2003, each agency shall use, to the maximum extent 
     practicable, for the purposes of efficient use of energy and 
     reduction in the cost of electricity used in the Federal 
     buildings of the agency, interval consumption data that 
     measure on a real-time or daily basis consumption of 
     electricity in the Federal buildings of the agency.
       ``(2) Plan.--As soon as practicable after the date of 
     enactment of this subsection, in a report submitted by the 
     agency under section 548(a), each agency shall submit to the 
     Secretary a plan describing how the agency will implement the 
     requirement of paragraph (1), including how the agency will 
     designate personnel primarily responsible for achieving the 
     requirement.''.

     SEC. 913. FEDERAL BUILDING PERFORMANCE STANDARDS.

       (a) Revised Standards.--Section 305(a) of the Energy 
     Conservation and Production Act (42 U.S.C. 6834(a)) is 
     amended--
       (1) in paragraph (2)(A), by striking ``CABO Model Energy 
     Code, 1992'' and inserting ``the 2000 International Energy 
     Conservation Code''; and
       (2) by adding at the end the following:
       (3) Revised federal building energy efficiency performance 
     standards.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Secretary of Energy shall 
     establish, by rule, revised Federal building energy 
     efficiency performance standards that require that, if cost-
     effective--
       ``(i) new commercial buildings and multifamily high rise 
     residential buildings be constructed so as to achieve the 
     applicable Energy Star building energy performance ratings or 
     energy consumption levels at least 30 percent below those of 
     the most recent ASHRAE Standard 90.1, whichever results in 
     the greater increase in energy efficiency;
       ``(ii) new residential buildings (other than those 
     described in clause (i)) be constructed so as to achieve the 
     applicable Energy Star building energy performance ratings or 
     achieve energy consumption levels at least 30 percent below 
     the requirements of the most recent version of the 
     International Energy Conservation Code, whichever results in 
     the greater increase in energy efficiency; and
       ``(iii) sustainable design principles are applied to the 
     siting, design, and construction of all new and replacement 
     buildings.
       ``(B) Additional revisions.--Not later than 1 year after 
     the date of approval of amendments to ASHRAE Standard 90.1 or 
     the 2000 International Energy Conservation Code, the 
     Secretary of Energy shall determine, based on the cost-
     effectiveness of the requirements under the amendments, 
     whether the revised standards established under this 
     paragraph should be updated to reflect the amendments.
       ``(C) Statement on compliance of new buildings.--In the 
     budget request of the Federal agency for each fiscal year and 
     each report submitted by the Federal agency under section 
     548(a) of the National Energy Conservation Policy Act (42 
     U.S.C. 8258(a)), the head of each Federal agency shall 
     include--
       ``(i) a list of all new Federal buildings of the Federal 
     agency; and
       ``(ii) a statement concerning whether the Federal buildings 
     meet or exceed the revised standards established under this 
     paragraph, including a monitoring and commissioning report 
     that is in compliance with the measurement and verification 
     protocols of the Department of Energy.
       ``(D) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this paragraph and to implement the revised 
     standards established under this paragraph.''.
       (b) Energy Labeling Program.--Section 305(a) of the Energy 
     Conservation and Production Act (42 U.S.C. 6834(a)) is 
     further amended by adding at the end the following:
       ``(e) Energy Labeling Program.--The Secretary of Energy, in 
     cooperation with the Administrator of the Environmental 
     Protection Agency, shall develop an energy labeling program 
     for new Federal buildings that exceed the revised standards 
     established under subsection (a)(3) by 15 percent or more.''.

     SEC. 914. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

       (a) Requirements.--Part 3 of title V of the National Energy 
     Conservation Policy Act is amended by adding at the end the 
     following:

     ``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

       ``(a) Definitions.--In this section:
       ``(1) Energy star product.--The term `Energy Star product' 
     means a product that is rated for energy efficiency under an 
     Energy Star program.
       ``(2) Energy star program.--The term `Energy Star program' 
     means the program established by section 324A of the Energy 
     Policy and Conservation Act.
       ``(3) Executive agency.--The term `executive agency' has 
     the meaning given the term in section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403).
       ``(4) FEMP designated product.--The term `FEMP designated 
     product' means a product that is designated under the Federal 
     Energy Management Program of the Department of Energy as 
     being among the highest 25 percent of equivalent products for 
     energy efficiency.
       ``(b) Procurement of Energy Efficient Products.--
       ``(1) Requirement.--To meet the requirements of an 
     executive agency for an energy consuming product, the head of 
     the executive agency shall, except as provided in paragraph 
     (2), procure--
       ``(A) an Energy Star product; or
       ``(B) a FEMP designated product.
       ``(2) Exceptions.--The head of an executive agency is not 
     required to procure an Energy Star product or FEMP designated 
     product under paragraph (1) if--
       ``(A) an Energy Star product or FEMP designated product is 
     not cost effective over the life cycle of the product; or
       ``(B) no Energy Star product or FEMP designated product is 
     reasonably available that meets the requirements of the 
     executive agency.
       ``(3) Procurement planning.--The head of an executive 
     agency shall incorporate into the specifications for all 
     procurements involving energy consuming products and systems, 
     and into the factors for the evaluation of offers received 
     for the procurement, criteria for energy efficiency that are 
     consistent with the criteria used for rating Energy Star 
     products and for rating FEMP designated products.
       ``(c) Listing of Energy Efficient Products in Federal 
     Catalogs.--Energy Star and FEMP designated products shall be 
     clearly identified and prominently displayed in any inventory 
     or listing of products by the General Services Administration 
     or the Defense Logistics Agency.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the National Energy Conservation Policy Act (42 
     U.S.C. 8201 note) is amended by inserting after the item 
     relating to section 551 the following:

``Sec. 552. Federal Government procurement of energy efficient 
              products.''

       (c) Regulations.--Not later than 180 days after the 
     effective date specified in subsection (f), the Secretary of 
     Energy shall issue guidelines to carry out section 552 of the 
     National Energy Conservation Policy Act (as added by 
     subsection (a)).
       (d) Designation of Energy Star Products.--The Administrator 
     of the Environmental Protection Agency and the Secretary of 
     Energy shall expedite the process of designating products as 
     Energy Star products (as defined in section 552 of the 
     National Energy Conservation Policy Act (as added by 
     subsection (a)).
       (e) Designation of Electric Motors.--In the case of 
     electric motors of 1 to 500 horsepower, agencies shall select 
     only premium efficient motors that meet a standard designated 
     by the Secretary. The Secretary shall designate such a 
     standard within 120 days of the enactment of this paragraph, 
     after considering the recommendations of associated electric 
     motor manufacturers and energy efficiency groups.
       (f) Effective Date.--Subsection (a) and the amendment made 
     by that subsection take effect on the date that is 180 days 
     after the date of enactment of this Act.

     SEC. 915. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT 
                   SUNSET.

       Section 801(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8287(c)) is repealed.

     SEC. 916. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.

       (a) Energy Savings.--Section 804(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to 
     read as follows:
       ``(2) The term `energy savings' means a reduction in the 
     cost of energy or water, from a base cost established through 
     a methodology set forth in the contract, used in an existing 
     federally owned building or buildings or other federally 
     owned facilities as a result of--
       ``(A) the lease or purchase of operating equipment, 
     improvements, altered operation and maintenance, or technical 
     services;
       ``(B) the increased efficient use of existing energy 
     sources by cogeneration or heat recovery, excluding any 
     cogeneration process for other than a federally owned 
     building or buildings or other federally owned facilities; or
       ``(C) the increased efficient use of existing water 
     sources.''.
       (b) Energy Savings Contract.--Section 804(3) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) 
     is amended to read as follows:
       ``(3) The terms `energy savings contract' and `energy 
     savings performance contract' mean a contract which provides 
     for the performance of services for the design, acquisition, 
     installation, testing, operation, and,

[[Page S1287]]

     where appropriate, maintenance and repair, of an identified 
     energy or water conservation measure or series of measures at 
     one or more locations.''.
       (c) Energy or Water Conservation Measure.--Section 804(4) 
     of the National Energy Conservation Policy Act (42 U.S.C. 
     8287c(4)) is amended to read as follows:
       ``(4) The term `energy or water conservation measure' 
     means--
       ``(A) an energy conservation measure, as defined in section 
     551(4) (42 U.S.C. 8259(4)); or
       ``(B) a water conservation measure that improves water 
     efficiency, is life cycle cost effective, and involves water 
     conservation, water recycling or reuse, more efficient 
     treatment of wastewater or stormwater, improvements in 
     operation or maintenance efficiencies, retrofit activities or 
     other related activities, not at a Federal hydroelectric 
     facility.''.

     SEC. 917. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT 
                   PROGRAM.

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

     SEC. 918. FEDERAL ENERGY BANK.

       Part 3 of title V of the National Energy Conservation 
     Policy Act is amended by adding at the end the following:

     ``SEC. 553. FEDERAL ENERGY BANK.

       ``(a) Definitions.--In this section:
       ``(1) Bank.--The term `Bank' means the Federal Energy Bank 
     established by subsection (b).
       ``(2) Energy or water efficiency project.--The term `energy 
     or water efficiency project' means a project that assists a 
     Federal agency in meeting or exceeding the energy or water 
     efficiency requirements of--
       ``(A) this part;
       ``(B) title VIII;
       ``(C) subtitle F of title I of the Energy Policy Act of 
     1992 (42 U.S.C. 8262 et seq.); or
       ``(D) any applicable Executive order, including Executive 
     Order No. 13123.
       ``(3) Federal agency.--The term `Federal agency' means--
       ``(A) an Executive agency (as defined in section 105 of 
     title 5, United States Code);
       ``(B) the United States Postal Service;
       ``(C) Congress and any other entity in the legislative 
     branch; and
       ``(D) a Federal court and any other entity in the judicial 
     branch.
       ``(b) Establishment of Bank.--
       ``(1) In general.--There is established in the Treasury of 
     the United States a fund to be known as the `Federal Energy 
     Bank', consisting of--
       ``(A) such amounts as are deposited in the Bank under 
     paragraph (2);
       ``(B) such amounts as are repaid to the Bank under 
     subsection (c)(2)(D); and
       ``(C) any interest earned on investment of amounts in the 
     Bank under paragraph (3).
       ``(2) Deposits in bank.--
       ``(A) In general.--Subject to the availability of 
     appropriations and to subparagraph (B), the Secretary of the 
     Treasury shall deposit in the Bank an amount equal to 
     $250,000,000 in fiscal year 2003 and in each fiscal year 
     thereafter.
       ``(B) Maximum amount in bank.--Deposits under subparagraph 
     (A) shall cease beginning with the fiscal year following the 
     fiscal year in which the amounts in the Bank (including 
     amounts on loan from the Bank) become equal to or exceed 
     $1,000,000,000.
       ``(3) Investment of amounts.--The Secretary of the Treasury 
     shall invest such portion of the Bank as is not, in the 
     judgment of the Secretary, required to meet current 
     withdrawals. Investments may be made only in interest-bearing 
     obligations of the United States.
       ``(c) Loans From the Bank.--
       ``(1) In general.--The Secretary of the Treasury shall 
     transfer from the Bank to the Secretary such amounts as are 
     appropriated to carry out the loan program under paragraph 
     (2).
       ``(2) Loan program.--
       ``(A) Establishment.--
       ``(i) In general.--In accordance with subsection (d), the 
     Secretary, in consultation with the Secretary of Defense, the 
     Administrator of General Services, and the Director of the 
     Office of Management and Budget, shall establish a program to 
     make loans of amounts in the Bank to any Federal agency that 
     submits an application satisfactory to the Secretary in order 
     to pay the costs of a project described in subparagraph (C).
       ``(ii) Commencement of operations.--The Secretary may 
     begin--

       ``(I) accepting applications for loans from the Bank in 
     fiscal year 2002; and
       ``(II) making loans from the Bank in fiscal year 2003.

       ``(B) Energy savings performance contracting funding.--To 
     the extent practicable, an agency shall not submit a project 
     for which energy performance contracting funding is available 
     and is acceptable to the Federal agency under title VIII.
       ``(C) Purposes of Loan.--
       ``(i) In general.--A loan from the Bank may be used to 
     pay--

       ``(I) the costs of an energy or water efficiency project, 
     or a renewable or alternative energy project, for a new or 
     existing Federal building (including selection and design of 
     the project);
       ``(II) the costs of an energy metering plan and metering 
     equipment installed pursuant to section 543(e) or for the 
     purpose of verification of the energy savings under an energy 
     savings performance contract under title VIII; or
       ``(III) at the time of contracting, the costs of cofunding 
     of an energy savings performance contract (including a 
     utility energy service agreement) in order to shorten the 
     payback period of the project that is the subject of the 
     energy savings performance contract.

       ``(ii) Limitation.--A Federal agency may use not more than 
     10 percent of the amount of a loan under subclause (I) or 
     (II) of clause (i) to pay the costs of administration and 
     proposal development (including data collection and energy 
     surveys).
       ``(iii) Renewable and alternative energy projects.--Not 
     more than 25 percent of the amount on loan from the Bank at 
     any time may be loaned for renewable energy and alternative 
     energy projects (as defined by the Secretary in accordance 
     with applicable law (including Executive Orders)).
       ``(D) Repayments.--
       ``(i) In general.--Subject to clauses (ii) through (iv), a 
     Federal agency shall repay to the Bank the principal amount 
     of a loan plus interest at a rate determined by the 
     President, in consultation with the Secretary and the 
     Secretary of the Treasury.
       ``(ii) Waiver or Reduction of Interest.--The Secretary may 
     waive or reduce the rate of interest required to be paid 
     under clause (i) if the Secretary determines that payment of 
     interest by a Federal agency at the rate determined under 
     that clause is not required to fund the operations of the 
     Bank.
       ``(iii) Determination of interest rate.--The interest rate 
     determined under clause (i) shall be at a rate that is 
     sufficient to ensure that, beginning not later than October 
     1, 2007, interest payments will be sufficient to fully fund 
     the operations of the Bank.
       ``(iv) Insufficiency of appropriations.--

       ``(I) Request for appropriations.--As part of the budget 
     request of the Federal agency for each fiscal year, the head 
     of each Federal agency shall submit to the President a 
     request for such amounts as are necessary to make such 
     repayments as are expected to become due in the fiscal year 
     under this subparagraph.
       ``(II) Suspension of repayment requirement.--If, for any 
     fiscal year, sufficient appropriations are not made available 
     to a Federal agency to make repayments under this 
     subparagraph, the Bank shall suspend the requirement of 
     repayment under this subparagraph until such appropriations 
     are made available.

       ``(E) Federal agency energy budgets.--Until a loan is 
     repaid, a Federal agency budget submitted by the President to 
     Congress for a fiscal year shall not be reduced by the value 
     of energy savings accrued as a result of any energy 
     conservation measure implemented using amounts from the Bank.
       ``(F) No rescission or reprogramming.--A Federal agency 
     shall not rescind or reprogram loan amounts made available 
     from the Bank except as permitted under guidelines issued 
     under subparagraph (G).
       ``(G) Guidelines.--The Secretary shall issue guidelines for 
     implementation of the loan program under this paragraph, 
     including selection criteria, maximum loan amounts, and loan 
     repayment terms.
       ``(d) Selection Criteria.--
       ``(1) In general.--The Secretary shall establish criteria 
     for the selection of projects to be awarded loans in 
     accordance with paragraph (2).
       ``(2) Selection criteria.--
       ``(A) In general.--The Secretary may make loans from the 
     Bank only for a project that--
       ``(i) is technically feasible;
       ``(ii) is determined to be cost-effective using life cycle 
     cost methods established by the Secretary;
       ``(iii) includes a measurement and management component, 
     based on the measurement and verification protocols of the 
     Department of Energy, to--

       ``(I) commission energy savings for new and existing 
     Federal facilities;
       ``(II) monitor and improve energy efficiency management at 
     existing Federal facilities; and

       ``(III) verify the energy savings under an energy savings 
     performance contract under title VIII;

     and
       ``(iv)(I) in the case of renewable energy or alternative 
     energy project, has a simple payback period of not more than 
     15 years; and
       ``(II) in the case of any other project, has a simple 
     payback period of not more than 10 years.
       ``(B) Priority.--In selecting projects, the Secretary shall 
     give priority to projects that--
       ``(i) are a component of a comprehensive energy management 
     project for a Federal facility; and

[[Page S1288]]

       ``(ii) are designed to significantly reduce the energy use 
     of the Federal facility.
       ``(e) Reports and Audits.--
       ``(1) Reports to the secretary.--Not later than 1 year 
     after the completion of installation of a project that has a 
     cost of more than $1,000,000, and annually thereafter, a 
     Federal agency shall submit to the Secretary a report that--
       ``(A) states whether the project meets or fails to meet the 
     energy savings projections for the project; and
       ``(B) for each project that fails to meet the energy 
     savings projections, states the reasons for the failure and 
     describes proposed remedies.
       ``(2) Audits.--The Secretary may audit, or require a 
     Federal agency that receives a loan from the Bank to audit, 
     any project financed with amounts from the Bank to assess the 
     performance of the project.
       ``(3) Reports to congress.--At the end of each fiscal year, 
     the Secretary shall submit to Congress a report on the 
     operations of the Bank, including a statement of--
       ``(A) the total receipts by the Bank;
       ``(B) the total amount of loans from the Bank to each 
     Federal agency; and
       ``(C) the estimated cost and energy savings resulting from 
     projects funded with loans from the Bank.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to such sums as are necessary 
     to carry out this section.''

     SEC. 919. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL 
                   BUILDINGS.

       (a) In General.--Part 3 of title V of the National Energy 
     Conservation Policy Act is amended by adding at the end:

     ``SEC. 554. ENERGY AND WATER SAVINGS MEASURES IN 
                   CONGRESSIONAL BUILDINGS.

       ``(a) In General.--The Architect of the Capitol--
       ``(1) shall develop, update, and implement a cost-effective 
     energy conservation and management plan (referred to in this 
     section as the ``plan'') for all facilities administered by 
     the Congress (referred to in this section as `congressional 
     buildings') to meet the energy performance requirements for 
     Federal buildings established under section 543(a)(1).
       ``(2) shall submit the plan to Congress, not later than 180 
     days after the date of enactment of this section.
       ``(b) Plan Requirements.--The plan shall include--
       ``(1) a description of the life-cycle cost analysis used to 
     determine the cost-effectiveness of proposed energy 
     efficiency projects;
       ``(2) a schedule of energy surveys to ensure complete 
     surveys of all congressional buildings every five years to 
     determine the cost and payback period of energy and water 
     conservation measures;
       ``(3) a strategy for installation of life cycle cost 
     effective energy and water conservation measures;
       ``(4) the results of a study of the costs and benefits of 
     installation of submetering in congressional buildings; and
       ``(5) information packages and ``how-to'' guides for each 
     Member and employing authority of Congress that detail 
     simple, cost-effective methods to save energy and taxpayer 
     dollars in the workplace.
       ``(c) Contracting Authority.--The Architect--
       ``(1) may contract with nongovernmental entities and use 
     private sector capital to finance energy conservation 
     projects and meet energy performance requirements; and
       ``(2) may use innovative contracting methods that will 
     attract private sector funding for the installation of energy 
     efficient and renewable energy technology, such as energy 
     savings performance contracts described in title VIII.
       ``(d) Capitol Visitor Center.--The Architect--
       ``(1) shall ensure that state-of-the-art energy efficiency 
     and renewable energy technologies are used in the 
     construction and design of the Visitor Center; and
       ``(2) shall include in the Visitor Center an exhibit on the 
     energy efficiency and renewable energy measures used in 
     congressional buildings.
       ``(e) Annual Report.--The Architect shall submit to 
     Congress annually a report on congressional energy management 
     and conservation programs required under this section that 
     describes in detail--
       ``(1) energy expenditures and savings estimates for each 
     facility;---
       ``(2) energy management and conservation projects; and
       ``(3) future priorities to ensure compliance with this 
     section.''.
       (b) Repeal.--Section 310 of the Legislative Branch 
     Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.

        Subtitle C--Industrial Efficiency and Consumer Products

     SEC. 921. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY 
                   INTENSITY.

       (a) Voluntary Agreements.--The Secretary of Energy shall 
     enter into voluntary agreements with one or more persons in 
     industrial sectors that consume significant amounts of 
     primary energy per unit of physical output to reduce the 
     energy intensity of their production activities.
       (b) Goal.--Voluntary agreements under this section shall 
     have a goal of reducing energy intensity by not less than 2.5 
     percent each year from 2002 through 2012.
       (c) Recognition.--The Secretary of Energy, in cooperation 
     with the Administrator of the Environmental Protection Agency 
     and other appropriate federal agencies, shall develop 
     mechanisms to recognize and publicize the achievements of 
     participants in voluntary agreements under this section.
       (d) Definition.--In this section, the term ``energy 
     intensity'' means the primary energy consumed per unit of 
     physical output in an industrial process.
       (e) Technical Assistance.--An entity that enters into an 
     agreement under this section and continues to make a good 
     faith effort to achieve the energy efficiency goals specified 
     in the agreement shall be eligible to receive from the 
     Secretary a grant or technical assistance as appropriate to 
     assist in the achievement of those goals.
       (f) Report.--Not later than June 30, 2008 and June 30, 
     2012, the Secretary shall submit to Congress a report that 
     evaluates the success of the voluntary agreements, with 
     independent verification of a sample of the energy savings 
     estimates provided by participating firms.

     SEC. 922. AUTHORITY TO SET STANDARDS FOR COMMERCIAL PRODUCTS.

       Part B of title III of the Energy Policy and Conservation 
     Act (42 U.S.C. 6291 et seq.) is amended as follows:
       (1) In the heading for such part, by inserting ``AND 
     COMMERCIAL'' after ``CONSUMER''.
       (2) In section 321(2), by inserting ``or commercial'' after 
     ``consumer''.
       (3) In paragraphs (4), (5), and (15) of section 321, by 
     striking ``consumer'' each place it appears and inserting 
     ``covered''.
       (4) In section 322(a), by inserting ``or commercial'' after 
     ``consumer'' the first place it appears in the material 
     preceding paragraph (1).
       (5) In section 322(b), by inserting ``or commercial'' after 
     ``consumer'' each place it appears.
       (6) In section 322 (b)(1)(B) and (b)(2)(A), by inserting 
     ``or per business in the case of a commercial product'' after 
     ``per-household'' each place it appears.
       (7) In section 322 (b)(2)(A), by inserting ``or businesses 
     in the case of commercial products'' after `households'' each 
     place it appears.
       (8) In section 322 (B)(2)(C)--
       (A) by striking ``term'' and inserting ``terms''; and
       (B) by inserting ``and `business' '' after ``household''.
       (9) In section 323 (b)(1) (B) by inserting ``or 
     commercial'' after ``consumer''.

     SEC. 923. ADDITIONAL DEFINITIONS.

       Section 321 of the Energy Policy and Conservation Act (42 
     U.S.C. 6291) is amended by adding at the end the following:
       ``(32) The term `battery charger' means a device that 
     charges batteries for consumer products.
       ``(33) The term `commercial refrigerator, freezer and 
     refrigerator-freezer' means a refrigerator, freezer or 
     refrigerator-freezer that--
       ``(A) is not a consumer product regulated under this Act; 
     and
       ``(B) incorporates most components involved in the vapor-
     compression cycle and the refrigerated compartment in a 
     single package.
       ``(34) The term `external power supply' means an external 
     power supply circuit that is used to convert household 
     electric current into either DC current or lower-voltage AC 
     current to operate a consumer product.
       ``(35) The term `illuminated exit sign' means a sign that--
       ``(A) is designed to be permanently fixed in place to 
     identify an exit; and
       ``(B) consists of--
       ``(i) an electrically powered integral light source that 
     illuminates the legend `EXIT' and any directional indicators; 
     and
       ``(ii) provides contrast between the legend, any 
     directional indicators, and the background.
       ``(36)(A) Except as provided in subsection (B), the term 
     `low-voltage dry-type transformer' means a transformer that--
       ``(i) has an input voltage of 600 volts or less;
       ``(ii) is air-cooled;
       ``(iii) does not use oil as a coolant; and
       ``(iv) is rated for operation at a frequency of 60 Hertz.
       ``(B) The term `low-voltage dry-type transformer' does not 
     include--
       ``(i) transformers with multiple voltage taps, with the 
     highest voltage tap equaling at least 20 percent more than 
     the lowest voltage tap;
       ``(ii) transformers that are designed to be used in a 
     special purpose application, such as transformers commonly 
     known as drive transformers, rectifier transformers, 
     autotransformers, Uninterruptible Power System transformers, 
     impedance transformers, harmonic transformers, regulating 
     transformers, sealed and nonventilating transformers, machine 
     tool transformers, welding transformers, grounding 
     transformers, or testing transformers; or
       ``(iii) any transformer not listed in clause (ii) that is 
     excluded by the Secretary by rule because the transformer is 
     designed for a special application and the application of 
     standards to the transformer would not result in significant 
     energy savings.
       ``(37) The term ``standby mode'' means the lowest amount of 
     electric power used by a household appliance when not 
     performing its active functions, as defined on an individual 
     product basis by the Secretary.

[[Page S1289]]

       ``(38) The term `torchiere' means a portable electric lamp 
     with a reflector bowl that directs light upward so as to give 
     indirect illumination.
       ``(39) The term `transformer' means a device consisting of 
     2 or more coils of insulated wire that transfers alternating 
     current by electromagnetic induction from one coil to another 
     to change the original voltage or current value.
       ``(40) The term `unit heater' means a self-contained fan-
     type heater designed to be installed within the heated space, 
     except that such term does not include a warm air furnace.

     SEC. 924. ADDITIONAL TEST PROCEDURES.

       (a) Exit Signs.--Section 323(b) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6293) is amended by adding at the 
     end the following:
       ``(9) Test procedures for illuminated exit signs shall be 
     based on the test method used under the Energy Star program 
     of the Environmental Protection Agency for illuminated exit 
     signs, as in effect on the date of enactment of this 
     paragraph.
       ``(10) Test procedures for low voltage dry-type 
     distribution transformers shall be based on the `Standard 
     Test Method for Measuring the Energy Consumption of 
     Distribution Transformers' prescribed by the National 
     Electrical Manufacturers Association (NEMA TP 2-1998). The 
     Secretary may review and revise this test procedure based on 
     future revisions to such standard test method.
       (b) Additional Consumer and Commercial Products.--Section 
     323 of the Energy Policy and Conservation Act (42 U.S.C. 
     6293) is further amended by adding at the end the following:
       ``(f) Additional Consumer and Commercial Products.--The 
     Secretary shall within 24 months after the date of enactment 
     of this subsection prescribe testing requirements for 
     suspended ceiling fans, refrigerated bottled or canned 
     beverage vending machines, commercial unit heaters, and 
     commercial refrigerators, freezers and refrigerator-freezers. 
     Such testing requirements shall be based on existing test 
     procedures used in industry to the extent practical and 
     reasonable. In the case of suspended ceiling fans, such test 
     procedures shall include efficiency at both maximum output 
     and at an output no more than 50 percent of the maximum 
     output.''.

     SEC. 925. ENERGY LABELING.

       (a) Rulemaking on Effectiveness of Consumer Product 
     Labeling.--Paragraph (2) of section 324(a) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended 
     by adding at the end the following:
       ``(F) Not later than three months after the date of 
     enactment of this subparagraph, the Commission shall initiate 
     a rulemaking to consider the effectiveness of the current 
     consumer products labeling program in assisting consumers in 
     making purchasing decisions and improving energy efficiency 
     and to consider changes to the labeling rules that would 
     improve the effectiveness of consumer product labels. Such 
     rulemaking shall be completed within 15 months of the date of 
     enactment of this subparagraph.''.
       (b) Rulemaking on Labeling for Additional Products.--
     Section 324(a) of the Energy Policy and Conservation Act (42 
     U.S.C. 6294(a)) is further amended by adding at the end the 
     following:
       ``(5) The Secretary shall within 6 months after the date on 
     which energy conservation standards are prescribed by the 
     Secretary for covered products referred to in subsections (u) 
     and (v) of section 325, and within 18 months of enactment of 
     this paragraph for products referred to in subsections (w) 
     through (y) of section 325, prescribe, by rule, labeling 
     requirements for such products. Labeling requirements adopted 
     under this paragraph shall take effect on the same date as 
     the standards set pursuant to sections 325(v) through (y).

     SEC. 926. ENERGY STAR PROGRAM.

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


                         ``ENERGY STAR PROGRAM.

       ``Sec. 324A. (a) In General.--There is established at the 
     Department of Energy and the Environmental Protection Agency 
     a program to identify and promote energy-efficient products 
     and buildings in order to reduce energy consumption, improve 
     energy security, and reduce pollution through labeling of 
     products and buildings that meet the highest energy 
     efficiency standards. Responsibilities under the program 
     shall be divided between the Department of Energy and the 
     Environmental Protection Agency consistent with the terms of 
     agreements between the two agencies. The Administrator and 
     the Secretary shall--
       ``(1) promote Energy Star compliant technologies as the 
     preferred technologies in the marketplace for achieving 
     energy efficiency and to reduce pollution;
       (2) work to enhance public awareness of the Energy Star 
     label;
       (3) preserve the integrity of the Energy Star label; and
       (4) solicit the comments of interested parties in 
     establishing a new Energy Star product category or in 
     revising a product category, and upon adoption of a new or 
     revised product category provide an explanation of the 
     decision that responds to significant public comments.''.

     SEC. 927. ENERGY CONSERVATION STANDARDS FOR CENTRAL AIR-
                   CONDITIONERS AND HEAT PUMPS.

       Section 325(d) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6295(d)) is amended to read as follows:
       ``(1) Except as provided in paragraph (3), the seasonal 
     energy efficiency ratio of central air conditioners and 
     central air conditioning heat pumps manufactured on or after 
     January 23, 2006 shall be no less than 13.0.
       ``(2) Except as provided in paragraph (4), the heating 
     seasonal performance factor of central air conditioning heat 
     pumps manufactured on or after January 23, 2006 shall be no 
     less than 7.7.
       ``(3) The seasonal energy efficiency ratio of central air 
     conditioners or central air conditioning heat pumps 
     manufactured on or after January 23, 2006 shall be no less 
     than 12.0 for products that--
       ``(A) have a rated cooling capacity equal to or less than 
     30,000 Btu per hour;
       ``(B) have an outdoor or indoor unit having at least two 
     overall exterior dimensions or an overall displacement that--
       ``(i) is substantially smaller than those of other units 
     that are currently installed in site-built single family 
     homes, and of a similar cooling or heating capacity, and
       ``(ii) if increased would result in a significant increase 
     in the cost of installation or would result in a significant 
     loss in the utility of the product to the consumer; and
       ``(C) were available for purchase in the United States as 
     of December 1, 2000.
       ``(4) The heating seasonal performance factor of central 
     air conditioning heat pumps manufactured on or after January 
     25, 2006 shall not be less 7.4 for products that meet the 
     criteria in paragraph (3).
       ``(5) The Secretary may postpone the requirements of 
     paragraphs (3) and (4) for specific product types until a 
     date no later than January 23, 2010, if he determines that 
     compliance is either--
       ``(A) not technologically feasible, or
       ``(B) not economically justifiable.
       ``(6) The Secretary shall publish a final rule not later 
     than January 1, 2006 to determine whether the standards in 
     effect for central air conditioners and central air 
     conditioning heat pumps should be amended. Such rule shall 
     provide that any amendment shall apply to products 
     manufactured on or after January 1, 2011.''.-

     SEC. 928. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL 
                   CONSUMER AND COMMERCIAL PRODUCTS.

       Section 325 of the Energy Policy and Conservation Act (42 
     U.S.C. 6295) is amended by adding at the end the following:
       ``(u) Standby Mode Electric Energy Consumption.--
       ``(1) Initial rulemaking.--
       ``(A) The Secretary shall, within 18 months after the date 
     of enactment of this subsection, prescribe by notice and 
     comment, definitions of standby mode and test procedures for 
     the standby mode power use of battery chargers and external 
     power supplies. In establishing these test procedures, the 
     Secretary shall consider, among other factors, existing test 
     procedures used for measuring energy consumption in standby 
     mode and assess the current and projected future market for 
     battery chargers and external power supplies. This assessment 
     shall include estimates of the significance of potential 
     energy savings from technical improvements to these products 
     and suggested product classes for standards. Prior to the end 
     of this time period, the Secretary shall hold a scoping 
     workshop to discuss and receive comments on plans for 
     developing energy conservation standards for standby mode 
     energy use for these products.
       ``(B) The Secretary shall, within 3 years after the date of 
     enactment of this subsection, issue a final rule that 
     determines whether energy conservation standards shall be 
     promulgated for battery chargers and external power supplies 
     or classes thereof. For each product class, any such 
     standards shall be set at the lowest level of standby energy 
     use that--
       (i) meets the criteria of subsections (o), (p), (q), (r), 
     (s) and (t); and
       (ii) will result in significant overall annual energy 
     savings, considering both standby mode and other operating 
     modes.
       ``(2) Designation of additional covered products.--
       ``(A) Not later than 180 days after the date of enactment 
     of this subsection, the Secretary shall publish for public 
     comment and public hearing a notice to determine whether any 
     noncovered products should be designated as covered products 
     for the purpose of instituting a rulemaking under this 
     section to determine whether an energy conservation standard 
     restricting standby mode energy consumption, should be 
     promulgated; providing that any restriction on standby mode 
     energy consumption shall be limited to major sources of such 
     consumption.
       ``(B) In making the determinations pursuant to subparagraph 
     (A) of whether to designate new covered products and 
     institute rulemakings, the Secretary shall, among other 
     relevant factors and in addition to the criteria in section 
     322(b), consider--
       ``(i) standby mode power consumption compared to overall 
     product energy consumption; and
       ``(ii) the priority and energy savings potential of 
     standards which may be promulgated under this subsection 
     compared to other required rulemakings under this section and 
     the available resources of the Department to conduct such 
     rulemakings.
       ``(C) Not later than one year after the date of enactment 
     of this subsection, the Secretary shall issue a determination 
     of any new covered products for which he intends to

[[Page S1290]]

     institute rulemakings on standby mode pursuant to this 
     section and he shall state the dates by which he intends to 
     initiate those rulemakings.
       ``(3) Review of standby energy use in covered products.--In 
     determining pursuant to section 323 whether test procedures 
     and energy conservation standards pursuant to section 325 
     should be revised, the Secretary shall consider for covered 
     products which are major sources of standby mode energy 
     consumption whether to incorporate standby mode into such 
     test procedures and energy conservation standards, taking 
     into account, among other relevant factors, the criteria for 
     non-covered products in subparagraph (B) of this subsection.
       ``(4) Rulemaking for standby mode.--
       ``(A) Any rulemaking instituted under this subsection or 
     for covered products under this section which restricts 
     standby mode power consumption shall be subject to the 
     criteria and procedures for issuing energy conservation 
     standards set forth in section 325 and the criteria set forth 
     in paragraph 2(B) of this subsection.
       ``(B) No standard can be proposed for new covered products 
     or covered products in a standby mode unless the Secretary 
     has promulgated applicable test procedures for each product 
     pursuant to section 323.
       ``(C) The provisions of section 327 shall apply to new 
     covered products which are subject to the rulemakings for 
     standby mode after a final rule has been issued.
       (5) Effective date.--Any standard promulgated under this 
     subsection shall be applicable to products manufactured or 
     imported three years after the date of promulgation.
       (6) Voluntary programs to reduce standby mode energy use.--
     The Secretary and the Administrator shall collaborate and 
     develop programs, including programs pursuant to section 324A 
     and other voluntary industry agreements or codes of conduct, 
     which are designed to reduce standby mode energy use.
       ``(v) Suspended Ceiling Fans, Vending Machines, Unit 
     Heaters, and Commercial Refrigerators, Freezers and 
     Refrigerator-Freezers.--The Secretary shall within 24 months 
     after the date on which testing requirements are prescribed 
     by the Secretary pursuant to section 323(f), prescribe, by 
     rule, energy conservation standards for suspended ceiling 
     fans, refrigerated bottled or canned beverage vending 
     machines, unit heaters, and commercial refrigerators, 
     freezers and refrigerator-freezers. In establishing standards 
     under this subsection, the Secretary shall use the criteria 
     and procedures contained in subsections (l) and (m). Any 
     standard prescribed under this subsection shall apply to 
     products manufactured 3 years after the date of publication 
     of a final rule establishing such standard.
       ``(w) Illuminated Exit Signs.--Illuminated exit signs 
     manufactured on or after January 1, 2005 shall meet the 
     Energy Star Program performance requirements for illuminated 
     exit signs prescribed by the Environmental Protection Agency 
     as in effect on the date of enactment of this subsection.
       ``(x) Torchieres.--Torchieres manufactured on or after 
     January 1, 2005--
       ``(1) shall consume not more than 190 watts of power; and
       ``(2) shall not be capable of operating with lamps that 
     total more than 190 watts.
       ``(y) Low Voltage Dry-Type Transformers.--
       ``The efficiency of low voltage dry-type transformers 
     manufactured on or after January 1, 2005 shall be the Class I 
     Efficiency Levels for low voltage dry-type transformers 
     specified in Table 4-2 of the `Guide for Determining Energy 
     Efficiency for Distribution Transformers' published by the 
     National Electrical Manufacturers Association (NEMA TP-1-
     1996).''.

     SEC. 929. CONSUMER EDUCATION ON ENERGY EFFICIENCY BENEFITS OF 
                   AIR CONDITIONING, HEATING, AND VENTILATION 
                   MAINTENANCE.

       Section 337 of the Energy Policy and Conservation Act (42 
     U.S.C. 6307) is amended by adding at the end the following:
       ``(c) HVAC Maintenance.--(1) For the purpose of ensuring 
     that installed air conditioning and heating systems operate 
     at their maximum rated efficiency levels, the Secretary 
     shall, within 180 days of the date of enactment of this 
     subsection, carry out a program to educate homeowners and 
     small business owners concerning the energy savings resulting 
     from properly conducted maintenance of air conditioning, 
     heating, and ventilating systems.
       ``(2) The Secretary may carry out the program in 
     cooperation with industry trade associations, industry 
     members, and energy efficiency organizations.''.

                     Subtitle D--Housing Efficiency

     SEC. 931. CAPACITY BUILDING FOR ENERGY EFFICIENT, AFFORDABLE 
                   HOUSING.

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

     SEC. 932. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY 
                   CONSERVATION AND EFFICIENCY ACTIVITIES.

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

     SEC. 933. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY 
                   EFFICIENT HOUSING.

       (a) Single Family Housing Mortgage Insurance.--Section 
     203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) 
     is amended, in the first undesignated paragraph beginning 
     after subparagraph (B)(iii) (relating to solar energy 
     systems)--
       (1) by inserting ``or paragraph (10)''; and
       (2) by striking ``20 percent'' and inserting ``30 
     percent''.
       (b) Multifamily Housing Mortgage Insurance.--Section 207(c) 
     of the National Housing Act (12 U.S.C. 1713(c)) is amended, 
     in the second undesignated paragraph beginning after 
     paragraph (3) (relating to solar energy systems and 
     residential energy conservation measures), by striking ``20 
     percent'' and inserting ``30 percent''.
       (c) Cooperative Housing Mortgage Insurance.--Section 213(p) 
     of the National Housing Act (12 U.S.C. 1715e(p)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.
       (d) Rehabilitation and Neighborhood Conservation Housing 
     Mortgage Insurance.--Section 220(d)(3)(B)(iii) of the 
     National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is 
     amended by striking ``20 per centum'' and inserting ``30 
     percent''.
       (e) Low-Income Multifamily Housing Mortgage Insurance.--
     Section 221(k) of the National Housing Act (12 U.S.C. 
     1715l(k)) is amended by striking ``20 per centum'' and 
     inserting ``30 percent''.
       (f) Elderly Housing Mortgage Insurance.--The proviso at the 
     end of section 213(c)(2) of the National Housing Act (12 
     U.S.C. 1715v(c)(2)) is amended by striking ``20 per centum'' 
     and inserting ``30 percent''.
       (g) Condominium Housing Mortgage Insurance.--Section 234(j) 
     of the National Housing Act (12 U.S.C. 1715y(j)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.

     SEC. 934. PUBLIC HOUSING CAPITAL FUND.

       Section 9(d)(1) of the United States Housing Act of 1937 
     (42 U.S.C. 1437g(d)(1)) is amended--
       (1) in subparagraph (I), by striking ``and'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(L) improvement of energy and water-use efficiency by 
     installing fixtures and fittings that conform to the American 
     Society of Mechanical Engineers/American National Standards 
     Institute standards A112.19.2-1998 and 112.18.1-2000, or any 
     revision thereto, applicable at the time of installation, and 
     by increasing energy efficiency and water conservation by 
     such other means as the Secretary determines are 
     appropriate.''.

     SEC. 935. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR 
                   ASSISTED HOUSING.

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

     SEC. 936. NORTH AMERICAN DEVELOPMENT BANK.

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

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

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

[[Page S1291]]

   DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

     TITLE X--CLIMATE CHANGE POLICY FORMULATION

                       Subtitle A--Global Warming

     SEC. 1001. SENSE OF CONGRESS ON GLOBAL WARMING.

       (a) Findings.--The Congress makes the following findings:
       (1) Evidence continues to build that increases in 
     atmospheric concentrations of man-made greenhouse gases are 
     contributing to global climate change.
       (2) The Intergovernmental Panel on Climate Change (IPCC) 
     has concluded that ``there is new and stronger evidence that 
     most of the warming observed over the last 50 years is 
     attributable to human activities'' and that the Earth's 
     average temperature can be expected to rise between 2.5 and 
     10.4 degrees Fahrenheit in this century.
       (3) The National Academy of Sciences confirmed the findings 
     of the IPCC, stating that ``the IPCC's conclusion that most 
     of the observed warming of the last 50 years is likely to 
     have been due to the increase of greenhouse gas 
     concentrations accurately reflects the current thinking of 
     the scientific community on this issue'' and that ``there is 
     general agreement that the observed warming is real and 
     particularly strong within the past twenty years''.
       (4) The IPCC has stated that in the last 40 years, the 
     global average sea level has risen, ocean heat content has 
     increased, and snow cover and ice extent have decreased, 
     which threatens to inundate low-lying island nations and 
     coastal regions throughout the world.
       (5) The Environmental Protection Agency has found that 
     global warming may harm the United States by altering crop 
     yields, accelerating sea level rise, and increasing the 
     spread of tropical infectious diseases.
       (6) In 1992, the United States ratified the United Nations 
     Framework Convention of Climate Change, done at New York on 
     May 9, 1992, the ultimate objective of which is the 
     ``stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system'', and 
     which stated in part ``the Parties to the Convention are to 
     implement policies with the aim of returning . . . to their 
     1990 levels anthropogenic emissions of carbon dioxide and 
     other greenhouse gases.''
       (7) There is a shared international responsibility to 
     address this problem, as industrial nations are the largest 
     historic and current emitters of greenhouse gases and 
     developing nations' emissions will significantly increase in 
     the future.
       (8) The United Nations Framework Convention on Climate 
     Change further states that ``developed country Parties should 
     take the lead in combating climate change and the adverse 
     effects thereof'', as these nations are the largest historic 
     and current emitters of greenhouse gases.
       (9) Senate Resolution 98 of July 1997, which expressed that 
     developing nations, especially the largest emitters, must 
     also be included in any future, binding climate change treaty 
     and such a treaty must not result in serious harm to the 
     United States economy, should not cause the United States to 
     abandon its shared responsibility to help find a solution to 
     the global climate change dilemma.
       (10) American businesses need to know how governments 
     worldwide will respond to the threat of global warming.
       (11) The United States has benefitted and will continue to 
     benefit from investments in the research, development and 
     deployment of a range of clean energy and efficiency 
     technologies that can mitigate global warming and that can 
     make the United States economy more productive, bolster 
     energy security, create jobs, and protect the environment.
       (b) Sense of Congress.--It is the sense of the United 
     States Congress that the United States should demonstrate 
     international leadership and responsibility in mitigating the 
     health, environmental, and economic threats posed by global 
     warming by--
       (1) taking responsible action to ensure significant and 
     meaningful reductions in emissions of greenhouse gases from 
     all sectors;
       (2) creating flexible international and domestic 
     mechanisms, including joint implementation, technology 
     deployment, emissions trading and carbon sequestration 
     projects that will reduce, avoid, and sequester greenhouse 
     gas emissions; and
       (3) participating in international negotiations, including 
     putting forth a proposal at the next meeting of the 
     Conference of the Parties, with the objective of securing 
     United States' participation in a revised Kyoto Protocol or 
     other future binding climate change agreements in a manner 
     that is consistent with the environmental objectives of the 
     Framework Convention on Climate Change, that protects the 
     economic interests of the United States, and recognizes the 
     shared international responsibility for addressing climate 
     change, including developing country participation.

                  Subtitle B--Climate Change Strategy

     SEC. 1011. SHORT TITLE.

       This title may be cited as the ``Climate Change Strategy 
     and Technology Innovation Act of 2002''.

     SEC. 1012. FINDINGS.

       Congress finds that--
       (1) evidence continues to build that increases in 
     atmospheric concentrations of greenhouse gases are 
     contributing to global climate change;
       (2) in 1992, the Senate ratified the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992, the ultimate objective of which is the 
     ``stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system'';
       (3) although science currently cannot determine precisely 
     what atmospheric concentrations are ``dangerous'', the 
     current trajectory of greenhouse gas emissions will lead to a 
     continued rise in greenhouse gas concentrations in the 
     atmosphere, not stabilization;
       (4) the remaining scientific uncertainties call for 
     temperance of human actions, but not inaction;
       (5) greenhouse gases are associated with a wide range of 
     human activities, including energy production, 
     transportation, agriculture, forestry, manufacturing, 
     buildings, and other activities;
       (6) the economic consequences of poorly designed climate 
     change response strategies, or of inaction, may cost the 
     global economy trillions of dollars;
       (7) a large share of this economic burden would be borne by 
     the United States;
       (8) stabilization of greenhouse gas concentrations in the 
     atmosphere will require transformational change in the global 
     energy system and other emitting sectors at an almost 
     unimaginable level--a veritable industrial revolution is 
     required;
       (9) such a revolution can occur only if the revolution is 
     preceded by research and development that leads to bold 
     technological breakthroughs;
       (10) over the decade preceding the date of enactment of 
     this Act--
       (A) energy research and development budgets in the public 
     and private sectors have declined precipitously and have not 
     been focused on the climate change response challenge; and
       (B) the investments that have been made have not been 
     guided by a comprehensive strategy;
       (11) the negative trends in research and development 
     funding described in paragraph (10) must be reversed with a 
     focus on not only traditional energy research and 
     development, but also bolder, breakthrough research;
       (12) much more progress could be made on the issue of 
     climate change if the United States were to adopt a new 
     approach for addressing climate change that included, as an 
     ultimate long-term goal--
       (A) stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system; and
       (B) a response strategy with 4 key elements consisting of--
       (i) definition of interim emission mitigation levels, that, 
     coupled with specific mitigation approaches and after taking 
     into account actions by other nations (if any), would result 
     in stabilization of greenhouse gas concentrations;
       (ii) technology development, including--

       (I) a national commitment to double energy research and 
     development by the United States public and private sectors; 
     and
       (II) in carrying out such research and development, a 
     national commitment to provide a high degree of emphasis on 
     bold, breakthrough technologies that will make possible a 
     profound transformation of the energy, transportation, 
     industrial, agricultural, and building sectors of the United 
     States;

       (iii) climate adaptation research that--

       (I) focuses on response actions necessary to adapt to 
     climate change that may have already occurred; and
       (II) focuses on response actions necessary to adapt to 
     climate change that may occur under any future climate change 
     scenario; and

       (iv) climate science research that--

       (I) builds on the substantial scientific understanding of 
     climate change that exists as of the date of enactment of 
     this Act; and
       (II) focuses on resolving the remaining scientific, 
     technical, and economic uncertainties to aid in the 
     development of sound response strategies; and

       (13) inherent in each of the 4 key elements of the response 
     strategy is consideration of the international nature of the 
     challenge, which will require--
       (A) establishment of joint climate response strategies and 
     joint research programs;
       (B) assistance to developing countries and countries in 
     transition for building technical and institutional 
     capacities and incentives for addressing the challenge; and
       (C) promotion of public awareness of the issue.

     SEC. 1013. PURPOSE.

       The purpose of this title is to implement the new approach 
     described in section 1012(12) by developing a national focal 
     point for climate change response through--
       (1) the establishment of the National Office of Climate 
     Change Response within the Executive Office of the President 
     to develop the United States Climate Change Response Strategy 
     that--
       (A) incorporates the 4 key elements of that new approach;
       (B) is supportive of and integrated in the overall energy, 
     transportation, industrial, agricultural, forestry, and 
     environmental policies of the United States;
       (C) takes into account--
       (i) the diversity of energy sources and technologies;

[[Page S1292]]

       (ii) supply-side and demand-side solutions; and
       (iii) national infrastructure, energy distribution, and 
     transportation systems;
       (D) provides for the inclusion and equitable participation 
     of Federal, State, tribal, and local government agencies, 
     nongovernmental organizations, academia, scientific bodies, 
     industry, the public, and other interested parties;
       (E) incorporates new models of Federal-State cooperation;
       (F) defines a comprehensive energy technology research and 
     development program that--
       (i) recognizes the important contributions that research 
     and development programs in existence on the date of 
     enactment of this title make toward addressing the climate 
     change response challenge; and
       (ii) includes an additional research and development agenda 
     that focuses on the bold, breakthrough technologies that are 
     critical to the long-term stabilization of greenhouse gas 
     concentrations in the atmosphere;
       (G) includes consideration of other efforts to address 
     critical environmental and health concerns, including clean 
     air, clean water, and responsible land use policies; and
       (H) incorporates initiatives to promote the deployment of 
     clean energy technologies developed in the United States and 
     abroad;
       (2) the establishment of the Interagency Task Force, 
     chaired by the Director of the White House Office, to serve 
     as the primary mechanism through which the heads of Federal 
     agencies work together to develop and implement the Strategy;
       (3) the establishment of the Office of Climate Change 
     Technology within the Department of Energy--
       (A) to manage, as its primary responsibility, an innovative 
     research and development program that focuses on the bold, 
     breakthrough technologies that are critical to the long-term 
     stabilization of greenhouse gas concentrations in the 
     atmosphere; and
       (B) to provide analytical support and data to the White 
     House Office, other agencies, and the public;
       (4) the establishment of an independent review board--
       (A) to review the Strategy and annually assess United 
     States and international progress toward the goal of 
     stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system; and
       (B) to assess--
       (i) the performance of each Federal agency that has 
     responsibilities under the Strategy; and
       (ii) the adequacy of the budget of each such Federal agency 
     to fulfill the responsibilities of the Federal agency under 
     the Strategy; and
       (5) the establishment of offices in, or the carrying out of 
     activities by, the Department of Agriculture, the Department 
     of Transportation, the Department of Commerce, the 
     Environmental Protection Agency, and other Federal agencies 
     as necessary to carry out this title.

     SEC. 1014. DEFINITIONS.

       In this title:
       (1) Climate-friendly technology.--The term ``climate-
     friendly technology'' means any energy supply or end-use 
     technology that, over the life of the technology and compared 
     to similar technology in commercial use as of the date of 
     enactment of this Act--
       (A) results in reduced emissions of greenhouse gases;
       (B) may substantially lower emissions of other pollutants; 
     and
       (C) may generate substantially smaller or less hazardous 
     quantities of solid or liquid waste.
       (2) Department.--The term ``Department'' means the 
     Department of Energy.
       (3) Department office.--The term ``Department Office'' 
     means the Office of Climate Change Technology of the 
     Department established by section 1017(a).
       (4) Federal agency.--The term ``Federal agency'' has the 
     meaning given the term ``agency'' in section 551 of title 5, 
     United States Code.
       (5) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) an anthropogenic gaseous constituent of the atmosphere 
     (including carbon dioxide, methane, nitrous oxide, 
     chlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, 
     sulfur hexafluoride, and tropospheric ozone) that absorbs and 
     re-emits infrared radiation and influences climate; and
       (B) an anthropogenic aerosol (such as black soot) that 
     absorbs solar radiation and influences climate.
       (6) Interagency task force.--The term ``Interagency Task 
     Force'' means the United States Climate Change Response 
     Interagency Task Force established under section 1016(d).
       (7) Key element.--The term ``key element'', with respect to 
     the Strategy, means--
       (A) definition of interim emission mitigation levels, that, 
     coupled with specific mitigation approaches and after taking 
     into account actions by other nations (if any), would result 
     in stabilization of greenhouse gas concentrations;
       (B) technology development, including--
       (i) a national commitment to double energy research and 
     development by the United States public and private sectors; 
     and
       (ii) in carrying out such research and development, a 
     national commitment to provide a high degree of emphasis on 
     bold, breakthrough technologies that will make possible a 
     profound transformation of the energy, transportation, 
     industrial, agricultural, and building sectors of the United 
     States;
       (C) climate adaptation research that--
       (i) focuses on response actions necessary to adapt to 
     climate change that may have already occurred; and
       (ii) focuses on response actions necessary to adapt to 
     climate change that may occur under any future climate change 
     scenario; and
       (D) climate science research that--
       (i) builds on the substantial scientific understanding of 
     climate change that exists as of the date of enactment of 
     this Act; and
       (ii) focuses on resolving the remaining scientific, 
     technical, and economic uncertainties to aid in the 
     development of sound response strategies.
       (8) Qualified individual.--
       (A) In general.--The term ``qualified individual'' means an 
     individual who has demonstrated expertise and leadership 
     skills to draw on other experts in diverse fields of 
     knowledge that are relevant to addressing the climate change 
     response challenge.
       (B) Fields of knowledge.--The fields of knowledge referred 
     to in subparagraph (A) are--
       (i) the science of primary and secondary climate change 
     impacts;
       (ii) energy and environmental economics;
       (iii) technology transfer and diffusion;
       (iv) the social dimensions of climate change;
       (v) climate change adaptation strategies;
       (vi) fossil, nuclear, and renewable energy technology;
       (vii) energy efficiency and energy conservation;
       (viii) energy systems integration;
       (ix) engineered and terrestrial carbon sequestration;
       (x) transportation, industrial, and building sector 
     concerns;
       (xi) regulatory and market-based mechanisms for addressing 
     climate change;
       (xii) risk and decision analysis;
       (xiii) strategic planning; and
       (xiv) the international implications of climate change 
     response strategies.
       (9) Review board.--The term ``Review Board'' means the 
     United States Climate Change Response Strategy Review Board 
     established by section 1019.
       (10) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (11) Stabilization of greenhouse gas concentrations.--The 
     term ``stabilization of greenhouse gas concentrations'' means 
     the stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system, 
     recognizing that such a level should be achieved within a 
     time frame sufficient to allow ecosystems to adapt naturally 
     to climate change, to ensure that food production is not 
     threatened and to enable economic development to proceed in a 
     sustainable manner, as contemplated by the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.
       (12) Strategy.--The term ``Strategy'' means the United 
     States Climate Change Response Strategy developed under 
     section 1015.
       (13) White house office.--The term ``White House Office'' 
     means the National Office of Climate Change Response of the 
     Executive Office of the President established by section 
     1016(a).

     SEC. 1015. UNITED STATES CLIMATE CHANGE RESPONSE STRATEGY.

       (a) In General.--The Director of the White House Office 
     shall develop the United States Climate Change Response 
     Strategy, which shall--
       (1) have the long-term goal of stabilization of greenhouse 
     gas concentrations through actions taken by the United States 
     and other nations;
       (2) recognize that accomplishing the long-term goal of 
     stabilization will take from many decades to more than a 
     century, but acknowledging that significant actions must 
     begin in the near term;
       (3) build on the 4 key elements;
       (4) be developed on the basis of an examination of a broad 
     range of emissions levels and dates for achievement of those 
     levels (including those evaluated by the Intergovernmental 
     Panel on Climate Change and those consistent with U.S. treaty 
     commitments) that, after taking into account by actions other 
     nations (if any), would culminate in the stabilization of 
     greenhouse gas concentrations;
       (5) consider the broad range of activities and actions that 
     can be taken by United States entities to reduce, avoid, or 
     sequester greenhouse gas emissions both within the United 
     States and in other nations through the use of market 
     mechanisms, which may include but not limited to mitigation 
     activities, terrestrial sequestration, earning offsets 
     through carbon capture or project-based activities, trading 
     of emissions credits in domestic and international markets, 
     and the application of the resulting credits from any of the 
     above within the United States;
       (6) minimize any adverse short-term and long-term social, 
     economic, national security, and environmental impacts, 
     including ensuring that the strategy is developed in an 
     economically and environmentally sound manner;

[[Page S1293]]

       (7) incorporate mitigation approaches leading to the 
     development and deployment of advanced technologies and 
     practices that will reduce, avoid, or sequester greenhouse 
     gas emissions;
       (8) recognize that the climate change response strategy is 
     intended to guide the nation's effort to address climate 
     change, but it shall not create a legal obligation on the 
     part of any person or entity other than the duties of the 
     Director of the White House Office and Interagency Task Force 
     in the development of the strategy;
       (9) be consistent with the goals of energy, transportation, 
     industrial, agricultural, forestry, environmental, economic, 
     and other relevant policies of the United States;
       (10) be consistent with the goals of energy, 
     transportation, industrial, agricultural, forestry, 
     environmental, and other relevant policies of the United 
     States;
       (11) have a scope that considers the totality of United 
     States public, private, and public-private sector actions 
     that bear on the long-term goal;
       (12) be based on an evaluation of a wide range of 
     approaches for achieving the long-term goal, including 
     evaluation of--
       (A) a variety of cost-effective Federal and State policies, 
     programs, standards, and incentives;
       (B) policies that integrate and promote innovative, market-
     based solutions in the United States and in foreign 
     countries; and
       (C) participation in other international institutions, or 
     in the support of international activities, that are 
     established or conducted to facilitate stabilization of 
     greenhouse gas concentrations;
       (13) in the final recommendations of the Strategy, 
     emphasize response strategies that achieve the long-term goal 
     and provide specific recommendations concerning--
       (A) measures determined to be appropriate for short-term 
     implementation, giving preference to cost-effective and 
     technologically feasible measures that will--
       (i) produce measurable net reductions in United States 
     emissions that lead toward achievement of the long-term goal; 
     and
       (ii) minimize any adverse short-term and long-term 
     economic, environmental, national security, and social 
     impacts on the United States;
       (B) the development of technologies that have the potential 
     for long-term implementation--
       (i) giving preference to technologies that have the 
     potential to reduce significantly the overall cost of 
     stabilization of greenhouse gas concentrations; and
       (ii) considering a full range of energy sources, energy 
     conversion and use technologies, and efficiency options;
       (C) such changes in institutional and technology systems as 
     are necessary to adapt to climate change in the short-term 
     and the long-term;
       (D) such review, modification, and enhancement of the 
     scientific, technical, and economic research efforts of the 
     United States, and improvements to the data resulting from 
     research, as are appropriate to improve the accuracy of 
     predictions concerning climate change and the economic and 
     social costs and opportunities relating to climate change; 
     and
       (E) changes that should be made to project and grant 
     evaluation criteria under other Federal research and 
     development programs so that those criteria do not inhibit 
     development of climate-friendly technologies;
       (14) be developed in a manner that provides for meaningful 
     participation by, and consultation among, Federal, State, 
     tribal, and local government agencies, nongovernmental 
     organizations, academia, scientific bodies, industry, the 
     public, and other interested parties in accordance with 
     subsections (b)(4)(C)(iv)(II) and (d)(3)(B)(iii) of section 
     1016;
       (15) address how the United States should engage State, 
     tribal, and local governments in developing and carrying out 
     a response to climate change;
       (16) promote, to the maximum extent practicable, public 
     awareness, outreach, and information-sharing to further the 
     understanding of the full range of climate change-related 
     issues;
       (17) provide a detailed explanation of how the measures 
     recommended by the Strategy will ensure that they do not 
     result in serious harm to the economy of the United States;
       (18) provide a detailed explanation of how the measures 
     recommended by the Strategy will achieve the long-term goal 
     of stabilization of greenhouse gas concentrations;
       (19) include any recommendations for legislative and 
     administrative actions necessary to implement the Strategy;
       (20) serve as a framework for climate change response 
     actions by all Federal agencies;
       (21) recommend which Federal agencies are, or should be, 
     responsible for the various aspects of implementation of the 
     Strategy and any budgetary implications;
       (22) address how the United States should engage foreign 
     governments in developing an international response to 
     climate change; and
       (23) be subject to review by an independent review board in 
     accordance with section 1019.
       (b) Submission to Congress.--Not later than 1 year after 
     the date of enactment of this title, the President shall 
     submit to Congress the Strategy.
       (c) Updating.--Not later than 2 years after the date of 
     submission of the Strategy to Congress under subsection (b), 
     and at the end of each 2-year period thereafter, the 
     President shall submit to Congress an updated version of the 
     Strategy.
       (d) Progress Reports.--Not later than 1 year after the date 
     of submission of the Strategy to Congress under subsection 
     (b), and at the end of each 1-year period thereafter, the 
     President shall submit to Congress a report that--
       (1) describes the progress on implementation of the 
     Strategy; and
       (2) provides recommendations for improvement of the 
     Strategy and the implementation of the Strategy.
       (e) Alignment With Energy, Transportation, Industrial, 
     Agricultural, Forestry, and Other Policies.--The President, 
     the Director of the White House Office, the Secretary, and 
     the other members of the Interagency Task Force shall work 
     together to align the actions carried out under the Strategy 
     and actions associated with the energy, transportation, 
     industrial, agricultural, forestry, and other relevant 
     policies of the United States so that the objectives of both 
     the Strategy and the policies are met without compromising 
     the climate change-related goals of the Strategy or the goals 
     of the policies.

     SEC. 1016. NATIONAL OFFICE OF CLIMATE CHANGE RESPONSE OF THE 
                   EXECUTIVE OFFICE OF THE PRESIDENT.

       (a) Establishment.--
       (1) In general.--There is established, within the Executive 
     Office of the President, the National Office of Climate 
     Change Response.
       (2) Focus.--The White House Office shall have the focus of 
     achieving the long-term goal of stabilization of greenhouse 
     gas concentrations while minimizing adverse short-term and 
     long-term economic and social impacts.
       (3) Duties.--Consistent with paragraph (2), the White House 
     Office shall--
       (A) establish policies, objectives, and priorities for the 
     Strategy;
       (B) in accordance with subsection (d), establish the 
     Interagency Task Force to serve as the primary mechanism 
     through which the heads of Federal agencies shall assist the 
     Director of the White House Office in developing and 
     implementing the Strategy;
       (C) to the maximum extent practicable, ensure that the 
     Strategy is based on objective, quantitative analysis, 
     drawing on the analytical capabilities of Federal and State 
     agencies, especially the Department Office;
       (D) advise the President concerning necessary changes in 
     organization, management, budgeting, and personnel allocation 
     of Federal agencies involved in climate change response 
     activities; and
       (E) advise the President and notify a Federal agency if the 
     policies and discretionary programs of the agency are not 
     well aligned with, or are not contributing effectively to, 
     the long-term goal of stabilization of greenhouse gas 
     concentrations.
       (b) Director of the White House Office.--
       (1) In general.--The White House Office shall be headed by 
     a Director, who shall report directly to the President.
       (2) Appointment.--The Director of the White House Office 
     shall be a qualified individual appointed by the President, 
     by and with the advice and consent of the Senate.
       (3) Duties of the director of the white house office.--
       (A) Strategy.--In accordance with section 1015, the 
     Director of the White House Office shall coordinate the 
     development and updating of the Strategy.
       (B) Interagency task force.--The Director of the White 
     House Office shall serve as Chairperson of the Interagency 
     Task Force.
       (C) Advisory duties.--
       (i) Climate, energy, transportation, industrial, 
     agricultural, building, forestry, and other programs.--The 
     Director of the White House Office, using an integrated 
     perspective considering the totality of actions in the United 
     States, shall advise the President and the heads of Federal 
     agencies on--

       (I) the extent to which United States energy, 
     transportation, industrial, agricultural, forestry, building, 
     and other relevant programs are capable of producing progress 
     on the long-term goal of stabilization of greenhouse gas 
     concentrations; and
       (II) the extent to which proposed or newly created energy, 
     transportation, industrial, agricultural, forestry, building, 
     and other relevant programs positively or negatively affect 
     the ability of the United States to achieve the long-term 
     goal of stabilization of greenhouse gas concentrations.

       (ii) Tax, trade, and foreign policies.--The Director of the 
     White House Office, using an integrated perspective 
     considering the totality of actions in the United States, 
     shall advise the President and the heads of Federal agencies 
     on--

       (I) the extent to which the United States tax policy, trade 
     policy, and foreign policy are capable of producing progress 
     on the long-term goal of stabilization of greenhouse gas 
     concentrations; and
       (II) the extent to which proposed or newly created tax 
     policy, trade policy, and foreign policy positively or 
     negatively affect the ability of the United States to achieve 
     the long-term goal of stabilization of greenhouse gas 
     concentrations.

       (iii) International treaties.--The Secretary of State, 
     acting in conjunction with the Interagency Task Force and 
     using the analytical tools available to the White House 
     Office, shall provide to the Director of the White House 
     Office an opinion that--

       (I) specifies, to the maximum extent practicable, the 
     economic and environmental

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     costs and benefits of any proposed international treaties or 
     components of treaties that have an influence on greenhouse 
     gas management; and
       (II) assesses the extent to which the treaties advance the 
     long-term goal of stabilization of greenhouse gas 
     concentrations, while minimizing adverse short-term and long-
     term economic and social impacts and considering other 
     impacts.

       (iv) Consultation.--

       (I) With members of interagency task force.--To the extent 
     practicable and appropriate, the Director of the White House 
     Office shall consult with all members of the Interagency Task 
     Force and other interested parties before providing advice to 
     the President.
       (II) With other interested parties.--The Director of the 
     White House Office shall establish a process for obtaining 
     the meaningful participation of Federal, State, tribal, and 
     local government agencies, nongovernmental organizations, 
     academia, scientific bodies, industry, the public, and other 
     interested parties in the formulation of advice to be 
     provided to the President.

       (D) Public education, awareness, outreach, and information-
     sharing.--The Director of the White House Office, to the 
     maximum extent practicable, shall promote public awareness, 
     outreach, and information-sharing to further the 
     understanding of the full range of climate change-related 
     issues.
       (4) Annual reports.--The Director of the White House 
     Office, in consultation with the Interagency Task Force and 
     other interested parties, shall prepare an annual report for 
     submission by the President to Congress that--
       (A) assesses progress in implementation of the Strategy;
       (B) assesses progress, in the United States and in foreign 
     countries, toward the long-term goal of stabilization of 
     greenhouse gas concentrations;
       (C) assesses progress toward meeting climate change-related 
     international obligations;
       (D) makes recommendations for actions by the Federal 
     Government designed to close any gap between progress-to-date 
     and the measures that are necessary to achieve the long-term 
     goal of stabilization of greenhouse gas concentrations; and
       (E) addresses the totality of actions in the United States 
     that relate to the 4 key elements.
       (5) Analysis.--During development of the Strategy, 
     preparation of the annual reports submitted under paragraph 
     (5), and provision of advice to the President and the heads 
     of Federal agencies, the Director of the White House Office 
     shall place significant emphasis on the use of objective, 
     quantitative analysis, taking into consideration any 
     uncertainties associated with the analysis.
       (c) Staff.--
       (1) In general.--The Director of the White House Office 
     shall employ a professional staff of not more than 25 
     individuals to carry out the duties of the White House 
     Office.
       (2) Intergovernmental personnel and fellowships.--The 
     Director of the White House Office may use the authority 
     provided by the Intergovernmental Personnel Act of 1970 (42 
     U.S.C. 4701 et seq.) and subchapter VI of chapter 33 of title 
     5, United States Code, and fellowships, to obtain staff from 
     academia, scientific bodies, nonprofit organizations, and 
     national laboratories, for appointments of a limited term.
       (d) Interagency task force.--
       (1) In general.--The Director of the White House Office 
     shall establish the United States Climate Change Response 
     Interagency Task Force.
       (2) Composition.--The Interagency Task Force shall be 
     composed of--
       (A) the Director of the White House Office, who shall serve 
     as Chairperson;
       (B) the Secretary of State;
       (C) the Secretary;
       (D) the Secretary of Commerce;
       (E) the Secretary of the Treasury;
       (F) the Secretary of Transportation;
       (G) the Secretary of Agriculture;
       (H) the Administrator of the Environmental Protection 
     Agency;
       (I) the Administrator of the Agency for International 
     Development;
       (J) the United States Trade Representative;
       (K) the National Security Advisor;
       (L) the Chairman of the Council of Economic Advisers;
       (M) the Chairman of the Council on Environmental Quality;
       (N) the Director of the Office of Science and Technology 
     Policy;
       (O) the Chairperson of the Subcommittee on Global Change 
     Research (which performs the functions of the Committee on 
     Earth and Environmental Sciences established by section 102 
     of the Global Change Research Act of 1990 (15 U.S.C. 2932)); 
     and
       (P) the heads of such other Federal agencies as the 
     Chairperson determines should be members of the Interagency 
     Task Force.
       (3) Strategy.--
       (A) In general.--The Interagency Task Force shall serve as 
     the primary forum through which the Federal agencies 
     represented on the Interagency Task Force jointly--
       (i) assist the Director of the White House Office in 
     developing and updating the Strategy; and
       (ii) assist the Director of the White House Office in 
     preparing annual reports under subsection (b)(5).
       (B) Required elements.--In carrying out subparagraph (A), 
     the Interagency Task Force shall--
       (i) take into account the long-term goal and other 
     requirements of the Strategy specified in section 1015(a);
       (ii) consult with State, tribal, and local government 
     agencies, nongovernmental organizations, academia, scientific 
     bodies, industry, the public, and other interested parties; 
     and
       (iii) build consensus around a Strategy that is based on 
     strong scientific, technical, and economic analyses.
       (4) Working groups.--The Chairperson of the Interagency 
     Task Force may establish such topical working groups as are 
     necessary to carry out the duties of the Interagency Task 
     Force.
       (e) Provision of Support Staff.--In accordance with 
     procedures established by the Chairperson of the Interagency 
     Task Force, the Federal agencies represented on the 
     Interagency Task Force shall provide staff from the agencies 
     to support information, data collection, and analyses 
     required by the Interagency Task Force.
       (f) Hearings.--On request of the Chairperson, the 
     Interagency Task Force may hold such hearings, meet and act 
     at such times and places, take such testimony, and receive 
     such evidence as the Interagency Task Force considers to be 
     appropriate.

     SEC. 1017. TECHNOLOGY INNOVATION PROGRAM IMPLEMENTED THROUGH 
                   THE OFFICE OF CLIMATE CHANGE TECHNOLOGY OF THE 
                   DEPARTMENT OF ENERGY.

       (a) Establishment of Office of Climate Change Technology of 
     the Department of Energy.--
       (1) In general.--There is established, within the 
     Department, the Office of Climate Change Technology.
       (2) Duties.--The Department Office shall--
       (A) manage an energy technology research and development 
     program that directly supports the Strategy by--
       (i) focusing on high-risk, bold, breakthrough technologies 
     that--

       (I) have significant promise of contributing to the 
     national climate change policy of long-term stabilization of 
     greenhouse gas concentrations by--

       (aa) mitigating the emissions of greenhouse gases;
       (bb) removing and sequestering greenhouse gases from 
     emission streams; or
       (cc) removing and sequestering greenhouse gases from the 
     atmosphere;

       (II) are not being addressed significantly by other Federal 
     programs; and
       (III) would represent a substantial advance beyond 
     technology available on the date of enactment of this title;

       (ii) forging fundamentally new research and development 
     partnerships among various Department, other Federal, and 
     State programs, particularly between basic science and energy 
     technology programs, in cases in which such partnerships have 
     significant potential to affect the ability of the United 
     States to achieve stabilization of greenhouse gas 
     concentrations at the lowest possible cost;
       (iii) forging international research and development 
     partnerships that are in the interests of the United States 
     and make progress on stabilization of greenhouse gas 
     concentrations;
       (iv) making available, through monitoring, experimentation, 
     and analysis, data that are essential to proving the 
     technical and economic viability of technology central to 
     addressing climate change; and
       (v) transitioning research and development programs to 
     other program offices of the Department once such a research 
     and development program crosses the threshold of high-risk 
     research and moves into the realm of more conventional 
     technology development;
       (B) prepare annual reports in accordance with subsection 
     (b)(6);
       (C) identify the total contribution of all Department 
     programs to climate change response;
       (D) provide substantial analytical support to the White 
     House Office, particularly support in the development of the 
     Strategy and associated progress reporting; and
       (E) advise the Secretary on climate change-related issues, 
     including necessary changes in Department organization, 
     management, budgeting, and personnel allocation in the 
     programs involved in climate change response-related 
     activities.
       (b) Director of the Department Office.--
       (1) In general.--The Department Office shall be headed by a 
     Director, who shall report directly to the Secretary.
       (2) Appointment.--The Director of the Department Office 
     shall be an employee of the Federal Government who is a 
     qualified individual appointed by the President.
       (3) Term.--The Director of the Department Office shall be 
     appointed for a term of 4 years.
       (4) Vacancies.--A vacancy in the position of the Director 
     of the Department Office shall be filled in the same manner 
     as the original appointment was made.
       (5) Duties of the director of the department office.--
       (A) Technology development.--The Director of the Department 
     Office shall manage the energy technology research and 
     development program described in subsection (a)(2)(A).
       (B) Strategy.--The Director of the Department Office shall 
     support development of the Strategy through the provision of 
     staff and analytical support.

[[Page S1295]]

       (C) Interagency task force.--Through active participation 
     in the Interagency Task Force, the Director of the Department 
     Office shall--
       (i) based on the analytical capabilities of the Department 
     Office, share analyses of alternative climate change response 
     strategies with other members of the Interagency Task Force 
     to assist all members in understanding--

       (I) the scale of the climate change response challenge; and
       (II) how the actions of the Federal agencies of the members 
     positively or negatively contribute to climate change 
     solutions; and

       (ii) determine how the energy technology research and 
     development program described in subsection (a)(2)(A) can be 
     designed for maximum impact on the long-term goal of 
     stabilization of greenhouse gas concentrations.
       (D) Tools, data, and capabilities.--The Director of the 
     Department Office shall foster the development of tools, 
     data, and capabilities to ensure that--
       (i) the United States has a robust capability for 
     evaluating alternative climate change response scenarios; and
       (ii) the Department Office provides long-term analytical 
     continuity during the terms of service of successive 
     Presidents.
       (E) Advisory duties.--The Director of the Department Office 
     shall advise the Secretary on all aspects of climate change 
     response.
       (6) Annual reports.--The Director of the Department Office 
     shall prepare an annual report for submission by the 
     Secretary to Congress and the White House Office that--
       (A) assesses progress toward meeting the goals of the 
     energy technology research and development program described 
     in subsection (a)(2)(A);
       (B) assesses the activities of the Department Office;
       (C) assesses the contributions of all energy technology 
     research and development programs of the Department 
     (including science programs) to the long-term goal and other 
     requirements of the Strategy specified in section 1015(a); 
     and
       (D) makes recommendations for actions by the Department and 
     other Federal agencies to address the components of 
     technology development that are necessary to support the 
     Strategy.
       (7) Analysis.--During development of the Strategy, annual 
     reports submitted under paragraph (6), and advice to the 
     Secretary, the Director of the Department Office shall place 
     significant emphasis on the use of objective, quantitative 
     analysis, taking into consideration any associated 
     uncertainties.
       (c) Staff.--The Director of the Department Office shall 
     employ a professional staff of not more than 25 individuals 
     to carry out the duties of the Department Office.
       (d) Intergovernmental Personnel and Fellowships.--The 
     Department Office may use the authority provided by the 
     Intergovernmental Personnel Act of 1970 (42 U.S.C. 4701 et 
     seq.), subchapter VI of chapter 33 of title 5, United States 
     Code, and other Departmental personnel authorities, to obtain 
     staff from academia, scientific bodies, nonprofit 
     organizations, industry, and national laboratories, for 
     appointments of a limited term.
       (e) Relationship to Other Department Programs.--Each 
     project carried out by the Department Office shall be--
       (1) initiated only after consultation with 1 or more other 
     appropriate program offices of the Department that support 
     research and development in areas relating to the project;
       (2) managed by the Department Office; and
       (3) in the case of a project that reaches a sufficient 
     level of maturity, with the concurrence of the Department 
     Office and an appropriate office described in paragraph (1), 
     transferred to the appropriate office, along with the funds 
     necessary to continue the project to the point at which non-
     Federal funding can provide substantial support for the 
     project.
       (f) Analysis of Strategic Climate Change Response.--
       (1) In general.--
       (A) Goal.--The Department Office shall foster the 
     development and application of advanced computational tools, 
     data, and capabilities that, together with the capabilities 
     of other federal agencies, support integrated assessment of 
     alternative climate change response scenarios and 
     implementation of the Strategy.
       (B) Participation and support.--Projects supported by the 
     Department Office may include participation of, and be 
     supported by, other Federal agencies that have a role in the 
     development, commercialization, or transfer of energy, 
     transportation, industrial, agricultural, forestry, or other 
     climate change-related technology.
       (2) Programs.--
       (A) In general.--The Department Office shall--
       (i) develop and maintain core analytical competencies and 
     complex, integrated computational modeling capabilities that, 
     together with the capabilities of other federal agencies, are 
     necessary to support the design and implementation of the 
     Strategy; and
       (ii) track United States and international progress toward 
     the long-term goal of stabilization of greenhouse gas 
     concentrations.
       (B) International carbon dioxide sequestration monitoring 
     and data program.--In consultation with Federal, State, 
     academic, scientific, private sector, nongovernmental, 
     tribal, and international carbon capture and sequestration 
     technology programs, the Department Office shall design and 
     carry out an international carbon dioxide sequestration 
     monitoring and data program to collect, analyze, and make 
     available the technical and economic data to ascertain--
       (i) whether engineered sequestration and terrestrial 
     sequestration will be acceptable technologies from 
     regulatory, economic, and international perspectives;
       (ii) whether carbon dioxide sequestered in geological 
     formations or ocean systems is stable and has inconsequential 
     leakage rates on a geologic time-scale; and
       (iii) the extent to which forest, agricultural, and other 
     terrestrial systems are suitable carbon sinks.
       (3) Areas of expertise.--
       (A) In general.--The Department Office shall develop and 
     maintain expertise in integrated assessment, modeling, and 
     related capabilities necessary--
       (i) to understand the relationship between natural, 
     agricultural, industrial, energy, and economic systems;
       (ii) to design effective research and development programs; 
     and
       (iii) to develop and implement the Strategy.
       (B) Technology transfer and diffusion.--The expertise 
     described in clause (i) shall include knowledge of technology 
     transfer and technology diffusion in United States markets 
     and foreign markets.
       (4) Dissemination of information.--The Department Office 
     shall ensure, to the maximum extent practicable, that 
     technical and scientific knowledge relating to greenhouse gas 
     emission reduction, avoidance, and sequestration is broadly 
     disseminated through publications, fellowships, and training 
     programs.
       (5) Assessments.--In a manner consistent with the Strategy, 
     the Department shall conduct assessments of deployment of 
     climate-friendly technology.
       (6) Use of private sector funding.--
       (A) In general.--The Department Office shall create an 
     operating model that allows for collaboration, division of 
     effort, and cost sharing with industry on individual climate 
     change response projects.
       (B) Requirements.--Although cost sharing in some cases may 
     be appropriate, the Department Office shall focus on long-
     term high-risk research and development and should not make 
     industrial partnerships or cost sharing a requirement, if 
     such a requirement would bias the activities of the 
     Department Office toward incremental innovations.
       (C) Reevaluation on transition.--At such time as any bold, 
     breakthrough research and development program reaches a 
     sufficient level of technological maturity such that the 
     program is transitioned to a program office of the Department 
     other than the Department Office, the cost-sharing 
     requirements and criteria applicable to the program should be 
     reevaluated.
       (D) Publication in federal register.--Each cost-sharing 
     agreement entered into under this subparagraph shall be 
     published in the Federal Register.

     SEC. 1018. ADDITIONAL OFFICES AND ACTIVITIES.

       The Secretary of Agriculture, the Secretary of 
     Transportation, the Secretary of Commerce, the Administrator 
     of the Environmental Protection Agency, and the heads of 
     other Federal agencies may establish such offices and carry 
     out such activities, in addition to those established or 
     authorized by this Act, as are necessary to carry out this 
     Act.

     SEC. 1019. UNITED STATES CLIMATE CHANGE RESPONSE STRATEGY 
                   REVIEW BOARD.

       (a) Establishment.--There is established as an independent 
     establishment within the executive branch the United States 
     Climate Change Response Strategy Review Board.
       (b) Membership.--
       (1) Composition.--The Review Board shall consist of 11 
     members who shall be appointed, not later than 90 days after 
     the date of enactment of this Act, by the President by and 
     with the advice and consent of the Senate, from among 
     qualified individuals nominated by the National Academy of 
     Sciences in accordance with paragraph (2).
       (2) Nominations.--Not later than 60 days after the date of 
     enactment of this Act, after taking into strong consideration 
     the guidance and recommendations of a broad range of 
     scientific and technical societies that have the capability 
     of recommending qualified individuals, the National Academy 
     of Sciences shall nominate for appointment to the Review 
     Board not fewer than 22 individuals who--
       (A) are--
       (i) qualified individuals; or
       (ii) experts in a field of knowledge specified in section 
     1014(9)(B); and
       (B) as a group represent broad, balanced expertise.
       (3) Prohibition on federal government employment.--A member 
     of the Review Board shall not be an employee of the Federal 
     Government.
       (4) Terms; vacancies.--
       (A) Terms.--
       (i) In general.--Subject to clause (ii), each member of the 
     Review Board shall be appointed for a term of 4 years.
       (ii) Initial Terms.--

       (I) Commencement date.--The term of each member initially 
     appointed to the Review Board shall commence 120 days after 
     the date of enactment of this title.
       (II) Termination date.--Of the 11 members initially 
     appointed to the Review Board, 5 members shall be appointed 
     for a term of 2 years and 6 members shall be appointed for a

[[Page S1296]]

     term of 4 years, to be designated by the President at the 
     time of appointment.

       (B) Vacancies.--
       (i) In general.--A vacancy on the Review Board shall be 
     filled in the manner described in this subparagraph.
       (ii) Nominations by the national academy of sciences.--Not 
     later than 60 days after the date on which a vacancy 
     commences, the National Academy of Sciences shall--

       (I) after taking into strong consideration the guidance and 
     recommendations of a broad range of scientific and technical 
     societies that have the capability of recommending qualified 
     individuals, nominate, from among qualified individuals, not 
     fewer than 2 individuals to fill the vacancy; and
       (II) submit the names of the nominees to the President.

       (iii) Selection.--Not later than 30 days after the date on 
     which the nominations under clause (ii) are submitted to the 
     President, the President shall select from among the nominees 
     an individual to fill the vacancy.
       (iv) Senate confirmation.--An individual appointed to fill 
     a vacancy on the Review Board shall be appointed by and with 
     the advice and consent of the Senate.
       (5) Applicability of ethics in government act of 1978.--A 
     member of the Review Board shall be deemed to be an 
     individual subject to the Ethics in Government Act of 1978 (5 
     U.S.C. App.).
       (6) Chairperson; vice chairperson.--The members of the 
     Review Board shall select a Chairperson and a Vice 
     Chairperson of the Review Board from among the members of the 
     Review Board.
       (c) Duties.--
       (1) In general.--Not later than 180 days after the date of 
     submission of the initial Strategy under section 1015(b), 
     each updated version of the Strategy under section 1015(c), 
     and each progress report under section 1015(d), the Review 
     Board shall submit to the President, Congress, and the heads 
     of Federal agencies as appropriate a report assessing the 
     adequacy of the Strategy or report.
       (2) Comments.--In reviewing the Strategy or a report under 
     paragraph (1), the Review Board shall consider and comment 
     on--
       (A) the adequacy of effort and the appropriateness of focus 
     of the totality of all public, private, and public-private 
     sector actions of the United States with respect to the 4 key 
     elements;
       (B) the extent to which actions of the United States, with 
     respect to climate change, complement or leverage 
     international research and other efforts designed to manage 
     global emissions of greenhouse gases, to further the long-
     term goal of stabilization of greenhouse gas concentrations;
       (C) the funding implications of any recommendations made by 
     the Review Board; and
       (D)(i) the effectiveness with which each Federal agency is 
     carrying out the responsibilities of the Federal agency with 
     respect to the short-term and long-term greenhouse gas 
     management goals; and
       (ii) the adequacy of the budget of each such Federal agency 
     to carry out those responsibilities.
       (3) Additional recommendations.--
       (A) In general.--Subject to subparagraph (B), the Review 
     Board, at the request of the President or Congress, may 
     provide recommendations on additional climate change-related 
     topics.
       (B) Secondary duty.--The provision of recommendations under 
     subparagraph (A) shall be a secondary duty to the primary 
     duty of the Review Board of providing independent review of 
     the Strategy and the reports under paragraphs (1) and (2).
       (d) Powers.--
       (1) Hearings.--
       (A) In general.--On request of the Chairperson or a 
     majority of the members of the Review Board, the Review Board 
     may hold such hearings, meet and act at such times and 
     places, take such testimony, and receive such evidence as the 
     Review Board considers to be appropriate.
       (B) Administration of oaths.--Any member of the Review 
     Board may administer an oath or affirmation to any witness 
     that appears before the Review Board.
       (2) Production of documents.--
       (A) In general.--On request of the Chairperson or a 
     majority of the members of the Review Board, and subject to 
     applicable law, the Secretary or head of a Federal agency 
     represented on the Interagency Task Force, or a contractor of 
     such an agency, shall provide the Review Board with such 
     records, files, papers, data, and information as are 
     necessary to respond to any inquiry of the Review Board under 
     this Act.
       (B) Inclusion of work in progress.--Subject to applicable 
     law, information obtainable under subparagraph (A)--
       (i) shall not be limited to final work products; but
       (ii) shall include draft work products and documentation of 
     work in progress.
       (3) Postal services.--The Review Board may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (e) Compensation of Members.--A member of the Review Board 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Review Board.
       (f) Travel Expenses.--A member of the Review Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the Review 
     Board.
       (g) Staff.--
       (1) In general.--The Chairperson of the Review Board may, 
     without regard to the provisions of title 5, United States 
     Code, regarding appointments in the competitive service, 
     appoint and terminate an executive director and such other 
     additional personnel as are necessary to enable the Review 
     Board to perform the duties of the Review Board.
       (2) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Review Board.
       (3) Compensation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Chairperson of the Review Board may fix the compensation 
     of the executive director and other personnel without regard 
     to the provisions of chapter 51 and subchapter III of chapter 
     53 of title 5, United States Code, relating to classification 
     of positions and General Schedule pay rates.
       (B) Maximum rate of pay.--The rate of pay for the executive 
     director and other personnel shall not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       (h) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Review Board may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.

     SEC. 1020. AUTHORIZATION OF APPROPRIATIONS.

       (a) White House Office.--
       (1) Use of available appropriations.--From funds made 
     available to Federal agencies for the fiscal year in which 
     this Title is enacted, the President shall provide such sums 
     as are necessary to carry out the duties of the White House 
     Office under this title until the date on which funds are 
     made available under paragraph (2).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the White House Office to carry out the 
     duties of the White House Office under this Title $5,000,000 
     for each of fiscal years 2003 through 2011, to remain 
     available through September 30, 2011.
       (b) Department Office.--
       (1) Use of available appropriations.--From funds made 
     available to Federal agencies for the fiscal year in which 
     this title is enacted, the President shall provide such sums 
     as are necessary to carry out the duties of the Department 
     Office under this Title until the date on which funds are 
     made available under paragraph (2).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Department Office to carry out the 
     duties of the Department Office under this title 
     $4,750,000,000 for the period of fiscal years 2003 through 
     2011, to remain available through September 30, 2011.
       (c) Review Board.--
       (1) Use of available appropriations.--From funds made 
     available to Federal agencies for the fiscal year in which 
     this title is enacted, the President shall provide such sums 
     as are necessary to carry out the duties of the Review Board 
     under this title until the date on which funds are made 
     available under paragraph (2).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Review Board to carry out the 
     duties of the Review Board under this title $3,000,000 for 
     each of fiscal years 2003 through 2011, to remain available 
     until expended.
       (d) Additional Amounts.--Amounts authorized to be 
     appropriated under this section shall be in addition to--
       (1) amounts made available to carry out the United States 
     Global Change Research Program under the Global Change 
     Research Act of 1990 (15 U.S.C. 2921 et seq.); and
       (2) amounts made available under other provisions of law 
     for energy research and development.

               Subtitle C--Science and Technology Policy

     SEC. 1031. GLOBAL CLIMATE CHANGE IN THE OFFICE OF SCIENCE AND 
                   TECHNOLOGY POLICY.

       Section 101(b) of the National Science and Technology 
     Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
     6601(b)) is amended--
       (1) by redesignating paragraphs (7) through (13) as 
     paragraphs (8) through (14), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) improving efforts to understand, assess, predict, 
     mitigate, and respond to global climate change;''.

     SEC. 1032. ESTABLISHMENT OF ASSOCIATE DIRECTOR FOR GLOBAL 
                   CLIMATE CHANGE.

       Section 203 of the National Science and Technology Policy, 
     Organization, and Priorities Act of 1976 (42 U.S.C. 6612) is 
     amended--
       (1) by striking ``four'' in the second sentence and 
     inserting ``five''; and
       (2) by striking ``title.'' in the second sentence and 
     inserting ``title, one of whom shall be responsible for 
     global climate change science and technology under the Office 
     of Science and Technology Policy.''.

[[Page S1297]]

                  Subtitle D--Miscellaneous Provisions

     SEC. 1041. ADDITIONAL INFORMATION FOR REGULATORY REVIEW.

       In each case that an agency prepares and submits a 
     Statement of Energy Effects pursuant to Executive Order 13211 
     of May 18, 2001 (relating to actions concerning regulations 
     that significantly affect energy supply, distribution, or 
     use), or as part of compliance with Executive Order 12866 of 
     September 30, 1993 (relating to regulatory planning and 
     review) or its successor, the agency shall also submit an 
     estimate of the change in net annual greenhouse gas emissions 
     resulting from the proposed significant energy action. In the 
     case in which there is an increase in net annual greenhouse 
     gas emissions as a result of the proposed significant energy 
     action, the agency shall indicate what policies or measures 
     will be undertaken to mitigate or offset the increased 
     emissions.

     SEC. 1042. GREENHOUSE GAS EMISSIONS FROM FEDERAL FACILITIES.

       (a) Methodology.--
       (1) In general.--Not later than one year after the date of 
     enactment of this section, the Secretary of Energy, Secretary 
     of Agriculture, Secretary of Commerce, and Administrator of 
     the Environmental Protection Agency shall publish a jointly 
     developed methodology for preparing estimates of annual net 
     greenhouse gas emissions from all Federally owned, leased, or 
     operated facilities and emission sources, including mobile 
     sources.
       (2) Indirect and other emissions.--The methodology under 
     paragraph (1) shall include emissions resulting from any 
     Federal procurement action with an annual Federal expenditure 
     of greater than $100 million, indirect emissions associated 
     with Federal electricity consumption, and other emissions 
     resulting from Federal actions that the heads of the agencies 
     under paragraph (1) may jointly decide to include in the 
     estimates.
       (b) Publication.--Not later than 18 months after the date 
     of enactment of this section, and annually thereafter, the 
     Secretary of Energy shall publish an estimate of annual net 
     greenhouse gas emissions from all Federally owned, leased, or 
     operated facilities and emission sources, using the 
     methodology published under subsection (a).-

              TITLE1 XI--NATIONAL GREENHOUSE GAS DATABASE

     SEC. 1101. PURPOSE.

       The purpose of this title is to establish a greenhouse gas 
     inventory, reductions registry, and information system that--
       (1) is complete, consistent, transparent, and accurate;
       (2) will create reliable and accurate data that can be used 
     by public and private entities to design efficient and 
     effective greenhouse gas emission reduction strategies; and,
       (3) will encourage and acknowledge greenhouse gas emissions 
     reductions.

     SEC. 1102. DEFINITIONS.

       In this title--
       (1) Database.--The term ``database'' means the National 
     Greenhouse Gas Database established under section 1104.
       (2) Designated agency or agencies.-- The term ``Designated 
     Agency or Agencies'' means the Department or Departments and/
     or Agency or Agencies given the responsibility for a function 
     or program under the Memorandum of Agreement entered into 
     pursuant to Section 1103.
       (3) Direct emissions.--The term ``direct emissions'' means 
     greenhouse gas emissions by an entity from a facility that is 
     owned or controlled by that entity.-
       (4) Entity.--The term ``entity'' means--
       (A) a person located in the United States; or
       (B) a public or private entity, to the extent that the 
     entity operates in the United States.
       (5) Facility.--The term ``facility'' means all buildings, 
     structures, or installations located on any one or more of 
     contiguous or adjacent property or properties, or a fleet of 
     20 or more transportation vehicles, under common control of 
     the same entity.
       (6) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluororcarbons;
       (E) perfluorocarbons; and
       (F) sulfur hexafluoride.
       (7) Indirect emissions.--The term `indirect emissions' 
     means greenhouse gas emissions that are a consequence of the 
     activities of an entity but that are emitted from a facility 
     owned or controlled by another entity and are not already 
     reported as direct emissions by a covered entity.
       (8) Sequestration.--The term `sequestration' means the 
     capture, long-term separation, isolation, or removal of 
     greenhouse gases from the atmosphere, including through a 
     biological or geologic method such as reforestation or an 
     underground reservoir.

     SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.

       (a) Not later than one year after the date of enactment of 
     this title, the President, acting through the Chairman of the 
     Council on Environmental Quality, shall direct the Department 
     of Energy, the Department of Commerce, the Department of 
     Agriculture, the Department of Transportation and the 
     Environmental Protection Agency, to enter into a Memorandum 
     of Agreement that will--
       (1) recognize and maintain existing statutory and 
     regulatory authorities, functions and programs that collect 
     data on greenhouse gas emissions and effects and that are 
     necessary for the operation of the National Greenhouse Gas 
     Database;
       (2) distribute additional responsibilities and activities 
     identified by this title to Federal departments or agencies 
     according to their mission and expertise and to maximize the 
     use of existing resources; and
       (3) provide for the comprehensive collection and analysis 
     of data on the emissions related to product use, including 
     fossil fuel and energy consuming appliances and vehicles.
       (b) The Memorandum of Agreement entered into under 
     subsection (a) shall, at a minimum, retain the following 
     functions for the respective Departments and agencies:
       (1) The Department of Energy shall be primarily responsible 
     for developing, maintaining, and verifying the emissions 
     reduction registry, under both this title and its authority 
     under section 1605(b) of the Energy Policy Act of 1992 (42 
     U.S.C. 13385(b)).
       (2) The Department of Commerce shall be primarily 
     responsible for the development of measurement standards for 
     emissions monitoring and verification technologies and 
     methods to ensure that there is a consistent and technically 
     accurate record of emissions, reductions and atmospheric 
     concentrations of greenhouse gases for the database under 
     this title.
       (3) The Environmental Protection Agency shall be primarily 
     responsible for emissions monitoring, measurement, 
     verification and data collection, pursuant to this title and 
     existing authority under Titles IV and VIII of the Clean Air 
     Act, and including mobile source emissions information from 
     implementation of the Corporate Average Fuel Economy program 
     (49 U.S.C. Chapter 329), and the Agency's role in completing 
     the national inventory for compliance with the United Nations 
     Framework Convention on Climate Change.
       (c) The Chairman shall publish a draft version of the 
     Memorandum of Agreement in the Federal Register and solicit 
     comments on it as soon as practicable and publish the final 
     Memorandum of Agreement in the Federal Register not later 
     than 15 months after the date of enactment of this title.
       (d) The final Memorandum of Agreement shall not be subject 
     to judicial review.

     SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.

       (a) Establishment.--The Designated Agency or Agencies, 
     working in consultation with the private sector and 
     nongovernmental organizations, shall establish, operate and 
     maintain a database to be known as the National Greenhouse 
     Gas Database to collect, verify, and analyze information on--
       (1) greenhouse gas emissions by entities located in the 
     United States; and
       (2) greenhouse gas emission reductions by entities based in 
     the United States.
       (b) National Greenhouse Gas Database Components.--The 
     database shall consist of an inventory of greenhouse gas 
     emissions and a registry of greenhouse gas emissions 
     reductions.
       (c) Deadline.--Not later than 2 years after the date of 
     enactment of this title, the Designated Agency or Agencies 
     shall promulgate a rule to implement a comprehensive system 
     for greenhouse gas emissions reporting, inventorying and 
     reductions registration. The Designated Agency or Agencies 
     shall ensure that the system is designed to maximize 
     completeness, transparency, and accuracy and to minimize 
     measurement and reporting costs for covered entities.
       (d) Required Elements of Database Reporting System.--
       (1) Mandatory reporting.--
       (A) Beginning one year after promulgation of the final rule 
     issued under subsection (c), each entity that exceeds the 
     greenhouse gas emissions threshold in paragraph (2) shall 
     report annually to the Designated Agency or Agencies, for 
     inclusion in the National Greenhouse Gas Database, the 
     entity-wide emissions of greenhouse gases in the previous 
     calendar year. Such reports are due annually to the 
     Designated Agency or Agencies, but must be submitted no later 
     than April 30 of each calendar year in support of the 
     previous years' emission reporting requirements.
       (B) Each report submitted shall include:
       (i) direct emissions from stationary sources;
       (ii) direct emissions from vehicles owned or controlled by 
     a covered entity;
       (iii) direct emissions from any land use activities that 
     release significant quantities of greenhouse gases;
       (iv) indirect emissions from all outsourced activities, 
     contract manufacturing, wastes transferred from the control 
     of an entity, and other relevant instances, as determined to 
     be practicable under the rule;
       (v) indirect emissions from electricity, heat, and steam 
     imported from another entity, as determined to be practicable 
     under the rule;
       (vi) the production, distribution or import of greenhouse 
     gases listed under section 1102 by an entity; and
       (vii) such other categories, which the designated Agency or 
     Agencies determine by rule, after public notice and comment, 
     should be included to accomplish the purposes of this title.
       (C) Each report shall include total mass quantities for 
     each greenhouse gas emitted, and in terms of carbon dioxide 
     equivalent.
       (D) Each report shall include the greenhouse gas emissions 
     per unit of output by an entity, such as tons of carbon 
     dioxide per kilowatt-hour or a similar metric.

[[Page S1298]]

       (E) The first report shall be required to be submitted not 
     later than April 30 of the fourth year after the date of 
     enactment of this title.
       (2) Threshold for reporting.--
       (A) An entity shall not be required to make a report under 
     paragraph (1) unless:
       (i) the total greenhouse gas emissions of at least one 
     facility owned by an entity in the calendar year for 
     reporting exceeds 10,000 metric tons of carbon dioxide 
     equivalent, or a greater level as determined by rule; or,
       (ii) the total quantity of greenhouse gases produced, 
     distributed or imported by the entity exceeds 10,000 metric 
     tons of carbon dioxide equivalent, or a greater level as 
     determined by rule.
       (B) the final rule promulgated under section 1104(c) and 
     subsequent revisions to that rule with respect to the 
     threshold for reporting in subparagraph (A) shall capture 
     information on no less than 75 percent of anthropogenic 
     greenhouse gas emissions from entities.
       (3) Method of reporting.--Entity-wide emissions shall be 
     reported at the facility level.
       (4) Additional voluntary reporting.--An entity may 
     voluntarily report to the Designated Agency or Agencies, for 
     inclusion in the registry portion of the national database--
       (A) with respect to the preceding calendar year and any 
     greenhouse gas emitted by the entity--
       (i) project reductions from facilities owned or controlled 
     by the reporting entity in the United States;
       (ii) transfers of project reductions to and from any other 
     entity;
       (iii) project reductions and transfers of project 
     reductions outside the United States;
       (iv) other indirect emissions that are not required to be 
     reported under subsection (d); and
       (v) product use phase emissions; and
       (B) with respect to greenhouse gas emissions reductions 
     activities carried out since 1990 and verified according to 
     rules implementing subparagraphs (6) and (8) of this 
     subsection and submitted to the Designated Agency or Agencies 
     before the date that is three years after the date of 
     enactment of this title, those reductions that have been 
     reported or submitted by an entity under section 1605(b) of 
     the Energy Policy Act of 1992 (42 U.S.C. 13385(b)) or under 
     other Federal or State voluntary greenhouse gas reduction 
     programs.
       (5) Types of activities.--Under paragraph (4), an entity 
     may report projects that reduce greenhouse gas emissions or 
     sequester a greenhouse gas, including--
       (A) fuel switching;
       (B) energy efficiency improvements;
       (C) use of renewable energy;
       (D) use of combined heat and power systems;
       (E) management of cropland, grassland, and grazing land;
       (F) forestry activities that increase forest carbon stocks 
     or reduce forest carbon emissions;
       (G) carbon capture and storage;
       (H) methane recovery; and
       (I) greenhouse gas offset investments.
       (6) Provision of verification information by reporting 
     entities.--Each reporting entity shall provide information 
     sufficient for the Designated Agency or Agencies to verify, 
     in accordance with measurement and verification criteria 
     developed under Section 1106, that the greenhouse gas report 
     of the reporting entity--
       (A) has been accurately reported; and
       (B) in the case of each additional voluntary report, 
     represents--
       (i) actual reductions in direct greenhouse gas emissions 
     relative to historic emission levels and net of any increases 
     in direct emissions and indirect emissions described in 
     clauses (iv) and (v) of paragraph (1)(B), or
       (ii) actual increases in net sequestration.
       (7) Independent third-party verification.--A reporting 
     entity may--
       (A) obtain independent third-party verification; and
       (B) present the results of the third-party verification to 
     the Designated Agency or Agencies for consideration by the 
     Designated Agency or Agencies in carrying out paragraph (1).
       (8) Data quality.--The rule under subsection (c)shall 
     establish procedures and protocols needed to--
       (A) prevent the reporting of some or all of the same 
     greenhouse gas emissions or emission reductions by more than 
     one reporting entity;
       (B) provide for corrections to errors in data submitted to 
     the database;
       (C) provide for adjustment to data by reporting entities 
     that have had a significant organizational change (including 
     mergers, acquisitions, and divestiture), in order to maintain 
     comparability among data in the database over time;
       (D) provide for adjustments to reflect new technologies or 
     methods for measuring or calculating greenhouse gas 
     emissions; and,
       (E) account for changes in registration of ownership of 
     emissions reductions resulting from a voluntary private 
     transaction between reporting entities.
       (9) Availability of data.--The Designated Agency or 
     Agencies shall ensure that information in the database is 
     published, accessible to the public, and made available in 
     electronic format on the Internet, except in cases where the 
     Designated Agency or Agencies determine that publishing or 
     making available the information would disclose information 
     vital to national security.
       (10) Data infrastructure.--The Designated Agency or 
     Agencies shall ensure that the database established by this 
     Act shall utilize and is integrated with existing Federal, 
     regional, and state greenhouse gas data collection and 
     reporting systems to the maximum extent possible and avoid 
     duplication of such systems.
       (11) Additional issues to be considered.--In promulgating 
     the rules for and implementing the Database, the Designated 
     Agency or Agencies shall consider a broad range of issues 
     involved in establishing an effective database, including the 
     following:
       (A) Units for reporting.--The appropriate units for 
     reporting each greenhouse gas, and whether to require 
     reporting of emission efficiency rates (including emissions 
     per kilowatt-hour for electricity generators) in addition to 
     mass emissions of greenhouse gases,
       (B) International consistency.--The greenhouse gas 
     reduction and sequestration methods and standards applied in 
     other countries, as applicable or relevant; and
       (C) Data sufficiency.--The extent to which available fossil 
     fuels, greenhouse gas emissions, and greenhouse gas 
     production and importation data are adequate to implement a 
     comprehensive National Greenhouse Gas Database.
       (e) Enforcement.--The Attorney General may, at the request 
     of the Designated Agency or Agencies, bring a civil action in 
     United States District Court against an entity that fails to 
     comply with reporting requirements under this section, to 
     impose a civil penalty of not more than $25,000 for each day 
     that the failure to comply continues.
       (f) Annual Report.--The Designated Agency or Agencies shall 
     publish an annual report that--
       (1) describes the total greenhouse gas emissions and 
     emission reductions reported to the database;
       (2) provides entity-by-entity and sector-by-sector analyses 
     of the emissions and emission reductions reported, and
       (3) describes the atmospheric concentrations of greenhouse 
     gases and tracks such information over time.

     SEC. 1105. REPORT ON STATUTORY CHANGES AND HARMONIZATION.

       Not later than 3 years after the date of enactment of this 
     title, the President shall submit to Congress a report 
     identifying any changes needed to this title or to other 
     provisions of law to improve the accuracy or operation of the 
     Greenhouse Gas Database and related programs under this 
     title.

     SEC. 1106. MEASUREMENT AND VERIFICATION.

       The Designated Agency or Agencies shall, not later than 1 
     year after the date of enactment of this title, design and 
     develop comprehensive measurement and verification methods 
     and standards to ensure a consistent and technically accurate 
     record of greenhouse gas emissions, reductions, and 
     atmospheric concentrations for use in the national greenhouse 
     gas database. The Agency or Agencies shall periodically 
     review and revise these methods and standards as necessary.

     SEC. 1107. INDEPENDENT REVIEW.

       (a) The General Accounting Office shall submit a report to 
     Congress five years after the date of enactment of this 
     title, and every three years thereafter, providing a review 
     of the efficacy of the implementation and operation of the 
     National Greenhouse Gas Database established in section 1104 
     and making recommendations for improvements to the programs 
     created pursuant to this title and changes to the law that 
     will achieve a consistent and technically accurate record of 
     greenhouse gas emissions, reductions, and atmospheric 
     concentrations and the other purposes of this title.
       (b) The Designated Agency or Agencies shall enter into an 
     agreement with the National Academy of Sciences to review the 
     scientific methods, assumptions and standards used by the 
     Agency or Agencies implementing this title, and to report to 
     Congress not later than four years after the date of 
     enactment of this title with recommendations for improving 
     those methods and standards or related elements of the 
     programs or structure of the reporting and registry system 
     established by this title.

     SEC. 1108. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as are 
     necessary to carry out the activities and programs included 
     in this title.

       DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING

          TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

     SEC. 1201. SHORT TITLE.

       This division may be cited as the ``Energy Science and 
     Technology Enhancement Act of 2002''.

     SEC. 1202. FINDINGS.

       The Congress finds the following:
       (1) A coherent national energy strategy requires an energy 
     research and development program that supports basic energy 
     research and provides mechanisms to develop, demonstrate, and 
     deploy new energy technologies in partnership with industry.
       (2) An aggressive national energy research, development, 
     demonstration, and technology deployment program is an 
     integral part of a national climate change strategy, because 
     it can reduce--
       (A) United States energy intensity by 1.9 percent per year 
     from 1999 to 2020;

[[Page S1299]]

       (B) United States energy consumption in 2020 by 8 
     quadrillion Btu from otherwise expected levels; and
       (C) United States carbon dioxide emissions from expected 
     levels by 166 million metric tons in carbon equivalent in 
     2020.
       (3) An aggressive national energy research, development, 
     demonstration, and technology deployment program can help 
     maintain domestic United States production of energy, 
     increase United States hydrocarbon reserves by 14 percent, 
     and lower natural gas prices by 20 percent, compared to 
     estimates for 2020.
       (4) An aggressive national energy research, development, 
     demonstration, and technology deployment program is needed if 
     United States suppliers and manufacturers are to compete in 
     future markets for advanced energy technologies.

     SEC. 1203. DEFINITIONS.

       In this title:
       (1) Department.--The term ``Department'' means the 
     Department of Energy.
       (2) Departmental mission.--The term ``departmental 
     mission'' means any of the functions vested in the Secretary 
     of Energy by the Department of Energy Organization Act (42 
     U.S.C. 7101 et seq.) or other law.
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     that term in section 1201(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1141(a));
       (4) National laboratory.--The term ``National Laboratory'' 
     means any of the following multi-purpose laboratories owned 
     by the Department of Energy--
       (A) Argonne National Laboratory;
       (B) Brookhaven National Laboratory;
       (C) Idaho National Engineering and Environmental 
     Laboratory;
       (D) Lawrence Berkeley National Laboratory;
       (E) Lawrence Livermore National Laboratory;
       (F) Los Alamos National Laboratory;
       (G) National Energy Technology Laboratory;
       (H) National Renewable Energy Laboratory;
       (I) Oak Ridge National Laboratory;
       (J) Pacific Northwest National Laboratory; or
       (K) Sandia National Laboratory.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (6) Technology deployment.--The term ``technology 
     deployment'' means activities to promote acceptance and 
     utilization of technologies in commercial application, 
     including activities undertaken pursuant to section 7 of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5906) or section 6 of the Renewable Energy 
     and Energy Efficiency Technology Competitiveness Act of 1989 
     (42 U.S.C. 12007).

     SEC. 1204. CONSTRUCTION WITH OTHER LAWS.

       Except as otherwise provided in this title and title XIV, 
     the Secretary shall carry out the research, development, 
     demonstration, and technology deployment programs authorized 
     by this title in accordance with the Atomic Energy Act of 
     1954 (42 U.S.C. 2011 et seq.), the Federal Nonnuclear 
     Research and Development Act of 1974 (42 U.S.C. 5901 et 
     seq.), the Energy Policy Act of 1992 (42 U.S.C.13201 et 
     seq.), or any other Act under which the Secretary is 
     authorized to carry out such activities.

                     Subtitle A--Energy Efficiency

     SEC. 1211. ENHANCED ENERGY EFFICIENCY RESEARCH AND 
                   DEVELOPMENT.

       (a) Program direction.--The Secretary shall conduct 
     balanced energy research, development, demonstration, and 
     technology deployment programs to enhance energy efficiency 
     in buildings, industry, power technologies, and 
     transportation.
       (b) Program goals.--
       (1) Energy-efficient housing.--The goal of the energy-
     efficient housing program shall be to develop, in partnership 
     with industry, enabling technologies (including lighting 
     technologies), designs, production methods, and supporting 
     activities that will, by 2010--
       (A) cut the energy use of new housing by 50 percent, and
       (B) reduce energy use in existing homes by 30 percent.
       (2) Industrial energy efficiency.--The goal of the 
     industrial energy efficiency program shall be to develop, in 
     partnership with industry, enabling technologies, designs, 
     production methods, and supporting activities that will, by 
     2010, enable energy-intensive industries such as the 
     following industries to reduce their energy intensity by at 
     least 25 percent--
       (A) the wood product manufacturing industry;
       (B) the pulp and paper industry;
       (C) the petroleum and coal products manufacturing industry;
       (D) the mining industry;
       (E) the chemical manufacturing industry;
       (F) the glass and glass product manufacturing industry;
       (G) the iron and steel mills and ferroalloy manufacturing 
     industry;
       (H) the primary aluminum production industry;
       (I) the foundries industry; and
       (J) U.S. agriculture.
       (3) Transportation energy efficiency.--The goal of the 
     transportation energy efficiency program shall be to develop, 
     in partnership with industry, technologies that will enable 
     the achievement--
       (A) by 2010, passenger automobiles with a fuel economy of 
     80 miles per gallon;
       (B) by 2010, light trucks (classes 1 and 2a) with a fuel 
     economy of 60 miles per gallon;
       (C) by 2010, medium trucks and buses (classes 2b through 6 
     and class 8 transit buses) with a fuel economy, in ton-miles 
     per gallon, that is three times that of year 2000 equivalent 
     vehicles;
       (D) by 2010, heavy trucks (classes 7 and 8) with a fuel 
     economy, in ton-miles per gallon, that is two times that of 
     year 2000 equivalent vehicles; and
       (E) by 2015, the production of fuel-cell powered passenger 
     vehicles with a fuel economy of 110 miles per gallon.
       (4) Energy efficient distributed generation--The goals of 
     the energy efficient on-site generation program shall be to 
     help remove environmental and regulatory barriers to on-site, 
     or distributed, generation and combined heat and power by 
     developing technologies by 2015 that achieve--
       (A) electricity generating efficiencies greater than 40 
     percent for on-site generation technologies based upon 
     natural gas, including fuel cells, microturbines, 
     reciprocating engines and industrial gas turbines;
       (B) combined heat and power total (electric and thermal) 
     efficiencies of more than 85 percent;
       (C) fuel flexibility to include hydrogen, biofuels and 
     natural gas;
       (D) near zero emissions of pollutants that form smog and 
     acid rain;
       (E) reduction of carbon dioxide emissions by at least 40 
     percent;
       (F) packaged system integration at end user facilities 
     providing complete services in heating, cooling, electricity 
     and air quality; and
       (G) increased reliability for the consumer and greater 
     stability for the national electricity grid.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out 
     research, development, demonstration, and technology 
     deployment activities under this subtitle--
       (1)$700,000,000 for fiscal year 2003;
       (2) $784,000,000 for fiscal year 2004;
       (3) $878,000,000 for fiscal year 2005; and
       (4) $983,000,000 for fiscal year 2006.
       (d) Limitation On Use Of Funds.--None of the funds 
     authorized to be appropriated in subsection (c) may be used 
     for the following programs of the Department--
       (1) Weatherization Assistance Program;
       (2) State Energy Program; or
       (3) Federal Energy Management Program.

     SEC. 1212. ENERGY EFFICIENCY SCIENCE INITIATIVE.

       (a) Establishment and Authorization of Appropriations.--
     From amounts authorized under section 1211(c), there are 
     authorized to be appropriated not more than $50,000,000 in 
     any fiscal year, for an Energy Efficiency Science Initiative 
     to be managed by the Assistant Secretary in the Department 
     with responsibility for energy conservation under section 
     203(a)(9) of the Department of Energy Organization Act (42 
     U.S.C. 7133(a)(9)), in consultation with the Director of the 
     Office of Science, for grants to be competitively awarded and 
     subject to peer review for research relating to energy 
     efficiency.
       (b) Report.--The Secretary of Energy shall submit to the 
     Committee on Science and the Committee on Appropriations of 
     the United States House of Representatives, and to the 
     Committee on Energy and Natural Resources and the Committee 
     on Appropriations of the United States Senate, an annual 
     report on the activities of the Energy Efficiency Science 
     Initiative, including a description of the process used to 
     award the funds and an explanation of how the research 
     relates to energy efficiency.

     SEC. 1213. NEXT GENERATION LIGHTING INITIATIVE.

       (a) Establishment.--There is established in the Department 
     a Next Generation Lighting Initiative to research, develop, 
     and conduct demonstration activities on advanced solid-state 
     lighting technologies based on white light emitting diodes.
       (b) Objectives.--
       (1) In general.--The objectives of the initiative shall be 
     to develop, by 2011, advanced solid-state lighting 
     technologies based on white light emitting diodes that, 
     compared to incandescent and fluorescent lighting 
     technologies, are--
       (A) longer lasting;
       (B) more energy-efficient; and
       (C) cost-competitive.
       (2) Inorganic white light emitting diode.--The objective of 
     the initiative with respect to inorganic white light emitting 
     diodes shall be to develop an inorganic white light emitting 
     diode that has an efficiency of 160 lumens per watt and a 10-
     year lifetime.
       (3) Organic white light emitting diode.--The objective of 
     the initiative with respect to organic white light emitting 
     diodes shall be to develop an organic white light emitting 
     diode with an efficiency of 100 lumens per watt with a 5-year 
     lifetime that--
       (A) illuminates over a full color spectrum;
       (B) covers large areas over flexible surfaces; and
       (C) does not contain harmful pollutants typical of 
     fluorescent lamps such as mercury.
       (c) Consortium.--
       (1) In general.--The Secretary shall initiate and manage 
     basic and manufacturing-related research on advanced solid-
     state lighting technologies based on white light emitting 
     diodes for the initiative, in cooperation with the Next 
     Generation Lighting Initiative Consortium.
       (2) Composition.--The consortium shall be composed of 
     firms, national laboratories,

[[Page S1300]]

     and other entities so that the consortium is representative 
     of the United States solid state lighting research, 
     development, and manufacturing expertise as a whole.
       (3) Funding.--The consortium shall be funded by--
       (A) participation fees; and
       (B) grants provided under subsection (e)(1).
       (4) Eligibility.--To be eligible to receive a grant under 
     subsection (e)(1), the consortium shall--
       (A) enter into a consortium participation agreement that--
       (i) is agreed to by all participants; and
       (ii) describes the responsibilities of participants, 
     participation fees, and the scope of research activities; and
       (B) develop an annual program plan.
       (5) Intellectual property.--Participants in the consortium 
     shall have royalty-free nonexclusive rights to use 
     intellectual property derived from consortium research 
     conducted under subsection (e)(1).
       (d) Planning Board.--
       (1) In general.--Not later than 90 days after the 
     establishment of the consortium, the Secretary shall 
     establish and appoint the members of a planning board, to be 
     known as the ``Next Generation Lighting Initiative Planning 
     Board'', to assist the Secretary in carrying out this 
     section.
       (2) Composition.--The planning board shall be composed of--
       (A) 4 members from universities, national laboratories, and 
     other individuals with expertise in advanced solid-state 
     lighting and technologies based on white light emitting 
     diodes; and
       (B) 3 members from a list of not less than 6 nominees from 
     industry submitted by the consortium.
       (3) Study.-- 
       (A) In general.--Not later than 90 days after the date on 
     which the Secretary appoints members to the planning board, 
     the planning board shall complete a study on strategies for 
     the development and implementation of advanced solid-state 
     lighting technologies based on white light emitting diodes.
       (B) Requirements.--The study shall develop a comprehensive 
     strategy to implement, through the initiative, the use of 
     white light emitting diodes to increase energy efficiency and 
     enhance United States competitiveness.
       (C) Implementation.--As soon as practicable after the study 
     is submitted to the Secretary, the Secretary shall implement 
     the initiative in accordance with the recommendations of the 
     planning board.
       (4) Termination.--The planning board shall terminate upon 
     completion of the study under paragraph (3).
       (e) Grants.--
       (1) Fundamental research.--The Secretary, through the 
     consortium, shall make grants to conduct basic and 
     manufacturing-related research related to advanced solid-
     state lighting technologies based on white light emitting 
     diode technologies.
       (2) Technology development and demonstration.--The 
     Secretary shall enter into grants, contracts, and cooperative 
     agreements to conduct or promote technology research, 
     development, or demonstration activities. In providing 
     funding under this paragraph, the Secretary shall give 
     preference to participants in the consortium.
       (3) Continuing assessment.--The consortium, in 
     collaboration with the Secretary, shall formulate annual 
     operating and performance objectives, develop technology 
     roadmaps, and recommend research and development priorities 
     for the initiative. The Secretary may also establish or 
     utilize advisory committees, or enter into appropriate 
     arrangements with the National Academy of Sciences, to 
     conduct periodic reviews of the initiative. The Secretary 
     shall consider the results of such assessment and review 
     activities in making funding decisions under paragraphs (1) 
     and (2) of this subsection.
       (4) Technical assistance.--The National Laboratories shall 
     cooperate with and provide technical assistance to persons 
     carrying out projects under the initiative.
       (5) Audits.--
       (A) In general.--The Secretary shall retain an independent, 
     commercial auditor to determine the extent to which funds 
     made available under this section have been expended in a 
     manner that is consistent with the objectives under 
     subsection (b) and, in the case of funds made available to 
     the consortium, the annual program plan of the consortium 
     under subsection (c)(4)(B).
       (B) Reports.--The auditor shall submit to Congress, the 
     Secretary, and the Comptroller General of the United States 
     an annual report containing the results of the audit.
       (6) Applicable law.--Grants, contracts, and cooperative 
     agreements under this section shall not be subject to the 
     Federal Acquisition Regulation.
       (f) Protection of Information.--Information obtained by the 
     Federal Government on a confidential basis under this section 
     shall be considered to constitute trade secrets and 
     commercial or financial information obtained from a person 
     and privileged or confidential under section 552(b)(4) of 
     title 5, United States Code.
       (g) Authorization of Appropriations.--In addition to 
     amounts authorized under section 1211(c), there are 
     authorized to be appropriated for activities under this 
     section $50,000,000 for each of fiscal years 2003 through 
     2011.
       (h) Definitions.--In this section:
       (1) Advanced solid-state lighting.--The term ``advanced 
     solid-state lighting'' means a semiconducting device package 
     and delivery system that produces white light using 
     externally applied voltage.
       (2) Consortium.--The term ``consortium'' means the Next 
     Generation Lighting Initiative Consortium under subsection 
     (c).
       (3) Initiative.--The term ``initiative'' means the Next 
     Generation Lighting Initiative established under subsection 
     (a).
       (4) inorganic white light emitting diode.--The term 
     ``inorganic white light emitting diode'' means an inorganic 
     semiconducting package that produces white light using 
     externally applied voltage.
       (5) Organic white light emitting diode.--The term ``organic 
     white light emitting diode'' means an organic semiconducting 
     compound that produces white light using externally applied 
     voltage.
       (6) White light emitting diode.--The term ``white light 
     emitting diode'' means--
       (A) an inorganic white light emitting diode; or
       (B) an organic white light emitting diode.

     SEC. 1214. RAILROAD EFFICIENCY.

       (a) Establishment.--The Secretary shall, in cooperation 
     with the Secretaries of Transportation and Defense, and the 
     Administrator of the Environmental Protection Agency, 
     establish a public-private research partnership involving the 
     federal government, railroad carriers, locomotive 
     manufacturers, and the Association of American Railroads. The 
     goal of the initiative shall include developing and 
     demonstrating locomotive technologies that increase fuel 
     economy, reduce emissions, improve safety, and lower costs.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out the requirements of this 
     section $60,000,000 for fiscal year 2003 and $70,000,000 for 
     fiscal year 2004.
                      Subtitle B--Renewable Energy

     SEC. 1221. ENHANCED RENEWABLE ENERGY RESEARCH AND 
                   DEVELOPMENT.

       (a) Program Direction.--The Secretary shall conduct 
     balanced energy research, development, demonstration, and 
     technology deployment programs to enhance the use of 
     renewable energy.
       (b) Program Goals.--
       (1) Wind power.--The goals of the wind power program shall 
     be to develop, in partnership with industry, a variety of 
     advanced wind turbine designs and manufacturing technologies 
     that are cost-competitive with fossil-fuel generated 
     electricity, with a focus on developing advanced low wind 
     speed technologies that, by 2007, will enable the expanding 
     utilization of widespread class 3 and 4 winds.
       (2) Photovoltaics.--The goal of the photovoltaic program 
     shall be to develop, in partnership with industry, total 
     photovoltaic systems with installed costs of $4000 per peak 
     kilowatt by 2005 and $2000 per peak kilowatt by 2015.
       (3) Solar thermal electric systems.--The goal of the solar 
     thermal electric systems program shall be to develop, in 
     partnership with industry, solar power technologies 
     (including baseload solar power) that are competitive with 
     fossil-fuel generated electricity by 2015, by combining high-
     efficiency and high-temperature receivers with advanced 
     thermal storage and power cycles.
       (4) Biomass-based power systems.--The goal of the biomass 
     program shall be to develop, in partnership with industry, 
     integrated power-generating systems, advanced conversion, and 
     feedstock technologies capable of producing electric power 
     that is cost-competitive with fossil-fuel generated 
     electricity by 2010, together with the production of fuels, 
     chemicals, and other products under paragraph (6).
       (5) Geothermal energy.--The goal of the geothermal program 
     shall be to develop, in partnership with industry, 
     technologies and processes based on advanced hydrothermal 
     systems and advanced heat and power systems, including 
     geothermal heat pump technology, with a specific focus on--
       (A) improving exploration and characterization technology 
     to increase the probability of drilling successful wells from 
     20 percent to 40 percent by 2006;
       (B) reducing the cost of drilling by 2008 to an average 
     cost of $150 per foot; and
       (C) developing enhanced geothermal systems technology with 
     the potential to double the useable geothermal resource base.
       (6) Biofuels.--The goal of the biofuels program shall be to 
     develop, in partnership with industry, advanced biochemical 
     and thermochemical conversion technologies capable of making 
     liquid and gaseous fuels from cellulosic feedstocks, that are 
     price-competitive with gasoline or diesel, in either internal 
     combustion engines or fuel cell vehicles, by 2010.
       (7) Hydrogen-based energy systems.--The goals of the 
     hydrogen program shall be to support research and development 
     on technologies for production, storage, and use of hydrogen, 
     including fuel cells and, specifically, fuel-cell vehicle 
     development activities under section 1211.
       (8) Hydropower.--The goal of the hydropower program shall 
     be to develop, in partnership with industry, a new generation 
     of turbine technologies that are less damaging to fish and 
     aquatic ecosystems.
       (9) Electric energy systems and storage.--The goals of the 
     electric energy and storage program shall be to develop, in 
     partnership with industry--
       (A) generators and transmission, distribution, and storage 
     systems that combine high capacity with high efficiency;

[[Page S1301]]

       (B) technologies to interconnect distributed energy 
     resources with electric power systems, comply with any 
     national interconnection standards, have a minimum 10-year 
     useful life;
       (C) advanced technologies to increase the average 
     efficiency of electric transmission facilities in rural and 
     remote areas, giving priority for demonstrations to advanced 
     transmission technologies that are being or have been field 
     tested;
       (D) the use of new transmission technologies, including 
     composite conductor materials, advanced protection devices, 
     controllers, and other cost-effective methods and 
     technologies;
       (E) the use of superconducting materials in power delivery 
     equipment such as transmission and distribution cables, 
     transformers, and generators;
       (F) energy management technologies for enterprises with 
     aggregated loads and distributed generation, such as power 
     parks;
       (G) economic and system models to measure the costs and 
     benefits of improved system performance;
       (H) hybrid distributed energy systems to optimize two or 
     more distributed or on-site generation technologies; and
       (I) real-time transmission and distribution system control 
     technologies that provide for continual exchange of 
     information between generation, transmission, distribution, 
     and end-user facilities.
       (c) Special Projects.--In carrying out this section, the 
     Secretary shall demonstrate--
       (1) the use of advanced wind power technology, biomass, 
     geothermal energy systems, and other renewable energy 
     technologies to assist in delivering electricity to rural and 
     remote locations; and
       (2) the combined use of wind power and coal gasification 
     technologies.
       (d) Financial Assistance to Rural Areas.--In carrying out 
     special projects under subsection (c), the Secretary may 
     provide financial assistance to rural electric cooperatives 
     and other rural entities.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out 
     research, development, demonstration, and technology 
     deployment activities under this subtitle--
       (1) $500,000,000 for fiscal year 2003;
       (2) $595,000,000 for fiscal year 2004;
       (3) $683,000,000 for fiscal year 2005; and
       (4) $733,000,000 for fiscal year 2006.

     SEC. 1222. BIOENERGY PROGRAMS.

       (a) Program Direction.--The Secretary shall carry out 
     research, development, demonstration, and technology 
     development activities related to bioenergy, including 
     programs under paragraphs (4) and (6) of section 1221(b).
       (b) Authorization of Appropriations.--
       (1) Biopower energy systems.--From amounts authorized under 
     section 1221(e), there are authorized to be appropriated to 
     the Secretary for biopower energy systems--
       (A) $60,300,000 for fiscal year 2003;
       (B) $69,300,000 for fiscal year 2004;
       (C) $79,600,000 for fiscal year 2005; and
       (D) $86,250,000 for fiscal year 2006.
       (2) Biofuels energy systems.--From amounts authorized under 
     section 1221(e), there are authorized to be appropriated to 
     the Secretary for biofuels energy systems--
       (A) $57,500,000 for fiscal year 2003;
       (B) $66,125,000 for fiscal year 2004;
       (C) $76,000,000 for fiscal year 2005; and
       (D) $81,400,000 for fiscal year 2006.
       (3) Integrated bioenergy research and development.--The 
     Secretary may use funds authorized under paragraph (1) or (2) 
     for programs, projects, or activities that integrate 
     applications for both biopower and biofuels, including cross-
     cutting research and development in feedstocks and economic 
     analysis.

     SEC. 1223. HYDROGEN RESEARCH AND DEVELOPMENT.

       (a) Short Title.--This section may be cited as the 
     ``Hydrogen Future Act of 2002''.
       (b) Purposes.--Section 102(b) of the Spark M. Matsunaga 
     Hydrogen Research, Development, and Demonstration Act of 1990 
     (42 U.S.C. 12401(b)) is amended by striking paragraphs (2) 
     and (3) and inserting the following:
       ``(2) to direct the Secretary to develop a program of 
     technology assessment, information transfer, and education in 
     which Federal agencies, members of the transportation, 
     energy, and other industries, and other entities may 
     participate;
       ``(3) to develop methods of hydrogen production that 
     minimize production of greenhouse gases, including 
     developing--
       ``(A) efficient production from non-renewable resources; 
     and
       ``(B) cost-effective production from renewable resources 
     such as biomass, geothermal, wind, and solar energy; and
       ``(4) to foster the use of hydrogen as a major energy 
     source, including developing the use of hydrogen in--
       ``(A) isolated villages, islands, and communities in which 
     other energy sources are not available or are very expensive; 
     and
       ``(B) foreign economic development, to avoid environmental 
     damage from increased fossil fuel use.''.
       (c) Report to Congress.--Section 103 of the Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990 (42 U.S.C. 12402) is amended--
       (1) in subsection (a), by striking ``January 1, 1999,'' and 
     inserting ``1 year after the date of enactment of the 
     Hydrogen Future Act of 2002, and biennially thereafter,'';
       (2) in subsection (b), by striking paragraphs (1) and (2) 
     and inserting the following:
       ``(1) an analysis of hydrogen-related activities throughout 
     the United States Government to identify productive areas for 
     increased intragovernmental collaboration;
       ``(2) recommendations of the Hydrogen Technical Advisory 
     Panel established by section 108 for any improvements in the 
     program that are needed, including recommendations for 
     additional legislation; and
       ``(3) to the extent practicable, an analysis of State and 
     local hydrogen-related activities.''; and
       (3) by adding at the end the following:
       ``(c) Coordination Plan.--The report under subsection (a) 
     shall be based on a comprehensive coordination plan for 
     hydrogen energy prepared by the Secretary in consultation 
     with other Federal agencies.''.
       (d) Hydrogen Research and Development.--Section 104 of the 
     Spark M. Matsunaga Hydrogen Research, Development, and 
     Demonstration Act of 1990 (42 U.S.C. 12403) is amended--
       (1) in subsection (b)(1), by striking ``marketplace;'' and 
     inserting ``marketplace, including foreign markets, 
     particularly where an energy infrastructure is not well 
     developed;'';
       (2) in subsection (e), by striking ``this chapter'' and 
     inserting ``this Act'';
       (3) by striking subsection (g) and inserting the following:
       ``(g) Cost sharing.--
       ``(1) Inability To Fund Entire Cost.--The Secretary shall 
     not consider a proposal submitted by a person from industry 
     unless the proposal contains a certification that--
       ``(A) reasonable efforts to obtain non-Federal funding in 
     the amount necessary to pay 100 percent of the cost of the 
     project have been made; and
       ``(B) non-Federal funding in that amount could not 
     reasonably be obtained.
       ``(2) Non-federal share.--
       ``(A) In general.--The Secretary shall require a commitment 
     from non-Federal sources of at least 25 percent of the cost 
     of the project.
       ``(B) Reduction or elimination.--The Secretary may reduce 
     or eliminate the cost-sharing requirement under subparagraph 
     (A) for the proposed research and development project, 
     including for technical analyses, economic analyses, outreach 
     activities, and educational programs, if the Secretary 
     determines that reduction or elimination is necessary to 
     achieve the objectives of this Act.
       (4) in subsection (i), by striking ``this chapter'' and 
     inserting ``this Act''.
       (e) Demonstrations.--Section 105 of the Spark M. Matsunaga 
     Hydrogen Research, Development, and Demonstration Act of 1990 
     (42 U.S.C. 12404) is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Non-Federal Share.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall require a commitment from non-Federal sources 
     of at least 50 percent of the costs directly relating to a 
     demonstration project under this section.
       ``(2) Reduction.--The Secretary may reduce the non-Federal 
     requirement under paragraph (1) if the Secretary determines 
     that the reduction is appropriate considering the 
     technological risks involved in the project and is necessary 
     to meet the objectives of this Act.''.
       (f) Technology Transfer.--Section 106 of the Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990 (42 U.S.C. 12405) is amended--
       (1) in subsection (a)--
       (A) in the first sentence--
       (i) by striking ``The Secretary shall conduct a program 
     designed to accelerate wider application'' and inserting the 
     following:
       ``(1) In general.--The Secretary shall conduct a program 
     designed to--
       ``(A) accelerate wider application''; and
       (ii) by striking ``private sector'' and inserting ``private 
     sector; and
       ``(B) accelerate wider application of hydrogen technologies 
     in foreign countries to increase the global market for the 
     technologies and foster global economic development without 
     harmful environmental effects.''; and
       (B) in the second sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(2) Advice and assistance.--The Secretary''; and
       (2) in subsection (b)--
       (A) in paragraph (2), by redesignating subparagraphs (A) 
     through (D) as clauses (i) through (iv), respectively, and 
     indenting appropriately;
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (C) by striking ``The Secretary, in'' and inserting the 
     following:
       ``(1) In general.--The Secretary, in'';
       (D) by striking ``The information'' and inserting the 
     following:
       ``(2) Activities.--The information''; and
       (E) in paragraph (1) (as designated by subparagraph (C))--
       (i) in subparagraph (A) (as redesignated by subparagraph 
     (B)), by striking ``an inventory'' and inserting ``an update 
     of the inventory''; and
       (ii) in subparagraph (B) (as redesignated by subparagraph 
     (B)), by striking ``develop'' and all that follows through 
     ``to improve'' and inserting ``develop with the National 
     Aeronautics and Space Administration, the Department of 
     Energy, other Federal agencies as appropriate, and industry, 
     an information exchange program to improve''.
       (g) Technical Panel Review.--

[[Page S1302]]

       (1) In general.--Section 108 of the Spark M. Matsunaga 
     Hydrogen Research, Development, and Demonstration Act of 1990 
     (42 U.S.C. 12407) is amended--
       (A) in subsection (b)--
       (i) by striking ``(b) Membership.--The technical panel 
     shall be appointed'' and inserting the following:
       ``(b) Membership.--
       ``(1) In general.--The technical panel shall be comprised 
     of not fewer than 9 nor more than 15 members appointed'';
       (ii) by striking the second sentence and inserting the 
     following:
       ``(2) Terms.--
       ``(A) In general.--The term of a member of the technical 
     panel shall be not more than 3 years.
       ``(B) Staggered terms.--The Secretary may appoint members 
     of the technical panel in a manner that allows the terms of 
     the members serving at any time to expire at spaced intervals 
     so as to ensure continuity in the functioning of the 
     technical panel.
       ``(C) Reappointment.--A member of the technical panel whose 
     term expires may be reappointed.''; and
       (iii) by striking ``The technical panel shall have a 
     chairman,'' and inserting the following:
       ``(3) Chairperson.--The technical panel shall have a 
     chairperson,''; and
       (B) in subsection (d)--
       (i) in the matter preceding paragraph (1), by striking 
     ``the following items'';
       (ii) in paragraph (1), by striking ``and'' at the end;
       (iii) in paragraph (2), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(3) the plan developed by the interagency task force 
     under section 202(b) of the Hydrogen Future Act of 1996.''.
       (2) New appointments.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary--
       (A) shall review the membership composition of the Hydrogen 
     Technical Advisory Panel; and
       (B) may appoint new members consistent with the amendments 
     made by subsection (a).
       (h) Authorization of Appropriations.--Section 109 of the 
     Spark M. Matsunaga Hydrogen Research, Development, and 
     Demonstration Act of 1990 (42 U.S.C. 12408) is amended--
       (1) in paragraph (8), by striking ``and'';
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(10) $65,000,000 for fiscal year 2003;
       ``(11) $70,000,000 for fiscal year 2004;
       ``(12) $75,000,000 for fiscal year 2005; and
       ``(13) $80,000,000 for fiscal year 2006.''.
       (i) Fuel Cells.--
       (1) Integration of fuel cells with hydrogen production 
     systems.--Section 201 of the Hydrogen Future Act of 1996 is 
     amended--
       (A) in subsection (a)--
       (i) by striking ``(a) Not later than 180 days after the 
     date of enactment of this section, and subject'' and 
     inserting ``(a) In General.--Subject''; and
       (B) by striking ``with''-- and all that follows and 
     inserting ``into Federal, State, and local government 
     facilities for stationary and transportation applications.'';
       (2) in subsection (b), by striking ``gas is'' and inserting 
     ``basis'';
       (3) in subsection (c)(2), by striking ``systems described 
     in subsections (a)(1) and (a)(2)'' and inserting ``projects 
     proposed''; and
       (4) by striking subsection (d) and inserting the following:
       ``(d) Non-Federal Share.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall require a commitment from non-Federal sources 
     of at least 50 percent of the costs directly relating to a 
     demonstration project under this section.
       ``(2) Reduction.--The Secretary may reduce the non-Federal 
     requirement under paragraph (1) if the Secretary determines 
     that the reduction is appropriate considering the 
     technological risks involved in the project and is necessary 
     to meet the objectives of this Act.''.
       (2) Cooperative and cost-sharing agreements; integration of 
     technical information.--Title II of the Hydrogen Future Act 
     of 1996 (42 U.S.C. 12403 note; Public Law 104-271) is amended 
     by striking section 202 and inserting the following:

     ``SEC. 202. INTERAGENCY TASK FORCE.

       ``(a) Establishment.--Not later than 120 days after the 
     date of enactment of this section, the Secretary shall 
     establish an interagency task force led by a Deputy Assistant 
     Secretary of the Department of Energy and comprised of 
     representatives of--
       ``(1) the Office of Science and Technology Policy;
       ``(2) the Department of Transportation;
       ``(3) the Department of Defense;
       ``(4) the Department of Commerce (including the National 
     Institute for Standards and Technology);
       ``(5) the Environmental Protection Agency;
       ``(6) the National Aeronautics and Space Administration; 
     and
       ``(7) other agencies as appropriate.
       ``(b) Duties.--
       ``(1) In general.--The task force shall develop a plan for 
     carrying out this title.
       ``(2) Focus of plan.--The plan shall focus on development 
     and demonstration of integrated systems and components for--
       ``(A) hydrogen production, storage, and use in Federal, 
     State, and local government buildings and vehicles;
       ``(B) hydrogen-based infrastructure for buses and other 
     fleet transportation systems that include zero-emission 
     vehicles; and
       ``(C) hydrogen-based distributed power generation, 
     including the generation of combined heat, power, and 
     hydrogen.

     ``SEC. 203. COOPERATIVE AND COST-SHARING AGREEMENTS.

       ``The Secretary shall enter into cooperative and cost-
     sharing agreements with Federal, State, and local agencies 
     for participation by the agencies in demonstrations at 
     facilities administered by the agencies, with the aim of 
     integrating high efficiency hydrogen systems using fuel cells 
     into the facilities to provide immediate benefits and promote 
     a smooth transition to hydrogen as an energy source.

     ``SEC. 204. INTEGRATION AND DISSEMINATION OF TECHNICAL 
                   INFORMATION.

       ``The Secretary shall--
       ``(1) integrate all the technical information that becomes 
     available as a result of development and demonstration 
     projects under this title;
       ``(2) make the information available to all Federal and 
     State agencies for dissemination to all interested persons; 
     and
       ``(3) foster the exchange of generic, nonproprietary 
     information and technology developed under this title among 
     industry, academia, and Federal, State, and local 
     governments, to help the United States economy attain the 
     economic benefits of the information and technology.

     SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated, for activities 
     under this title--
       ``(1) $25,000,000 for fiscal year 2003;
       ``(2) $30,000,000 for fiscal year 2004;
       ``(3) $35,000,000 for fiscal year 2005; and
       ``(4) $40,000,000 for fiscal year 2006.''.

                       Subtitle C--Fossil Energy

     SEC. 1231. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT.

       (a) Program Direction.--The Secretary shall conduct a 
     balanced energy research, development, demonstration, and 
     technology deployment program to enhance fossil energy.
       (b) Program Goals.--
       (1) Core fossil research and development.--The goals of the 
     core fossil research and development program shall be to 
     reduce emissions from fossil fuel use by developing 
     technologies, including precombustion technologies, by 2015 
     with the capability of realizing--
       (A) electricity generating efficiencies of 60 percent for 
     coal and 75 percent for natural gas;
       (B) combined heat and power thermal efficiencies of more 
     than 85 percent;
       (C) fuels utilization efficiency of 75 percent for the 
     production of liquid transportation fuels from coal;
       (D) near zero emissions of mercury and of emissions that 
     form fine particles, smog, and acid rain;
       (E) reduction of carbon dioxide emissions by at least 40 
     percent through efficiency improvements and 100 percent with 
     sequestration; and
       (F) improved reliability, efficiency, reductions of air 
     pollutant emissions, or reductions in solid waste disposal 
     requirements.
       (2) Offshore oil and natural gas resources.--The goal of 
     the offshore oil and natural gas resources program shall be 
     to develop technologies to--
       (A) extract methane hydrates in coastal waters of the 
     United States, and
       (B) develop natural gas and oil reserves in the ultra-
     deepwater of the Central and Western Gulf of Mexico.
       (3) Onshore oil and natural gas resources.--The goal of the 
     onshore oil and natural gas resources program shall be to 
     advance the science and technology available to domestic 
     onshore petroleum producers, particularly independent 
     operators, through--
       (A) advances in technology for exploration and production 
     of domestic petroleum resources, particularly those not 
     accessible with current technology;
       (B) improvement in the ability to extract hydrocarbons from 
     known reservoirs and classes of reservoirs; and
       (C) development of technologies and practices that reduce 
     the threat to the environment from petroleum exploration and 
     production and decrease the cost of effective environmental 
     compliance.
       (4) Transportation fuels.--The goals of the transportation 
     fuels program shall be to increase the price elasticity of 
     oil supply and demand by focusing research on--
       (A) reducing the cost of producing transportation fuels 
     from coal and natural gas; and
       (B) indirect liquefaction of coal and biomass.
       (c) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary for carrying out research, development, 
     demonstration, and technology deployment activities under 
     this section--
       (1) $485,000,000 for fiscal year 2003;
       (2) $508,000,000 for fiscal year 2004;
       (3) $532,000,000 for fiscal year 2005; and
       (4) $558,000,000 for fiscal year 2006.
       (2) Limits on use of funds.--
       (A) None of the funds authorized in paragraph (1) may be 
     used for--
       (i) Fossil energy environmental restoration;

[[Page S1303]]

       (ii) Import/export authorization;
       (iii) Program direction; or
       (iv) General plant projects.
       (B) Coal-based projects.--The coal-based projects funded 
     under this section shall be consistent with the goals in 
     subsection (b). The program shall emphasize carbon capture 
     and sequestration technologies and gasification technologies, 
     including gasification combined cycle, gasification fuel 
     cells, gasification co-production, hybrid gasification/
     combustion, or other technology with the potential to address 
     the goals in subparagraphs (D) or (E) of subsection (b)(1).

     SEC. 1232. POWER PLANT IMPROVEMENT INITIATIVE.

       (a) Program Direction.--The Secretary shall conduct a 
     balanced energy research, development, demonstration, and 
     technology deployment program to demonstrate commercial 
     applications of advanced lignite and coal-based technologies 
     applicable to new or existing power plants (including co-
     production plants) that advance the efficiency, environmental 
     performance, and cost-competitiveness substantially beyond 
     technologies that are in operation or have been demonstrated 
     by the date of enactment of this subtitle.
       (b) Technical Milestones.--
       (1) In general.--The Secretary shall set technical 
     milestones specifying efficiency and emissions levels that 
     projects shall be designed to achieve. The milestones shall 
     become more restrictive over the life of the program.
       (2) 2010 efficiency milestones.--The milestones shall be 
     designed to achieve by 2010 interim thermal efficiency of--
       (A) 45 percent for coal of more than 9,000 Btu;
       (B) 44 percent for coal of 7,000 to 9,000 Btu; and
       (C) 42 percent for coal of less than 7,000 Btu.
       (3) 2020 efficiency milestones.--The milestones shall be 
     designed to achieve by 2020 thermal efficiency of--
       (A) 60 percent for coal of more than 9,000 Btu;
       (B) 59 percent for coal of 7,000 to 9,000 Btu; and
       (C) 57 percent for coal of less than 7,000 Btu.
       (4) Emissions milestones.--The milestones shall include 
     near zero emissions of mercury and greenhouse gases and of 
     emissions that form fine particles, smog, and acid rain.
       (4) Regional and quality differences.--The Secretary may 
     consider regional and quality differences in developing the 
     efficiency milestones.
       (c) Project Criteria.--The demonstration activities 
     proposed to be conducted at a new or existing coal-based 
     electric generation unit having a nameplate rating of not 
     less than 100 megawatts, excluding a co-production plant, 
     shall include at least one of the following--
       (1) a means of recycling or reusing a significant portion 
     of coal combustion wastes produced by coal-based generating 
     units, excluding practices that are commercially available by 
     the date of enactment of this subtitle;
       (2) a means of capture and sequestering emissions, 
     including greenhouse gases, in a manner that is more 
     effective and substantially below the cost of technologies 
     that are in operation or that have been demonstrated by the 
     date of enactment of this subtitle;
       (3) a means of controlling sulfur dioxide and nitrogen 
     oxide or mercury in a manner that improves environmental 
     performance beyond technologies that are in operation or that 
     have been demonstrated by the date of enactment of this 
     subtitle, and
       (A) in the case of an existing unit, achieve an overall 
     thermal design efficiency improvement compared to the 
     efficiency of the unit as operated, of not less than--
       (i) 7 percent for coal of more than 9,000 Btu;
       (ii) 6 percent for coal of 7,000 to 9,000 Btu; or
       (iii) 4 percent for coal of less than 7,000 Btu; or
       (B) in the case of a new unit, achieve the efficiency 
     milestones set for in subsection (b) compared to the 
     efficiency of a typical unit as operated on the date of 
     enactment of this subtitle, before any retrofit, repowering, 
     replacement, or installation.
       (d) Study.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, the 
     Secretary of the Interior, and interested entities (including 
     coal producers, industries using coal, organizations to 
     promote coal or advanced coal technologies, environmental 
     organizations, and organizations representing workers), shall 
     conduct an assessment that identifies performance criteria 
     that would be necessary for coal-based technologies to meet, 
     to enable future reliance on coal in an environmentally 
     sustainable manner for electricity generation, use as a 
     chemical feedstock, and use as a transportation fuel.
       (e) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary for carrying out activities under this section 
     $200,000,000 for each of fiscal years 2003 through 2011.
       (2) Limitation on funding of projects.--Eighty percent of 
     the funding under this section shall be limited to--
       (A) carbon capture and sequestration technologies; or
       (B) gasification technologies, including gasification 
     combined cycle, gasification fuel cells, gasification co-
     production, or hybrid gasification/combustion, or
       (C) or other technology either by itself or in conjunction 
     with other technologies has the potential to achieve near 
     zero emissions.

     SEC. 1233. RESEARCH AND DEVELOPMENT FOR ADVANCED SAFE AND 
                   EFFICIENT COAL MINING TECHNOLOGIES.

       (a) Establishment.--The Secretary of Energy shall establish 
     a cooperative research partnership involving appropriate 
     Federal agencies, coal producers, including associations, 
     equipment manufacturers, universities with mining engineering 
     departments, and other relevant entities to--
       (1) develop mining research priorities identified by the 
     Mining Industry of the Future Program and in the 
     recommendations from relevant reports of the National Academy 
     of Sciences on mining technologies;
       (2) establish a process for conducting joint industry-
     government research and development; and
       (3) expand mining research capabilities at institutions of 
     higher education.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out activities under this section, $12,000,000 in 
     fiscal year 2003 and $15,000,000 in fiscal year 2004.
       (2) Limit on use of funds.--Not less than 20 percent of any 
     funds appropriated in a given fiscal year under this 
     subsection shall be dedicated to research carried out at 
     institutions of higher education.

     SEC. 1234. ULTRA-DEEPWATER AND UNCONVENTIONAL RESOURCE 
                   EXPLORATION AND PRODUCTION TECHNOLOGIES.

       (a) Definitions.--In this section:
       (1) Advisory committee.--The term ``Advisory Committee'' 
     means the Ultra-Deepwater and Unconventional Resource 
     Technology Advisory Committee established under subsection 
     (c).
       (2) Award.--The term ``award'' means a cooperative 
     agreement, contract, award or other types of agreement as 
     appropriate.
       (3) Deepwater.--The term ``deepwater'' means a water depth 
     that is greater than 200 but less than 1,500 meters.
       (4) Eligible award recipient.--The term ``eligible award 
     recipient'' includes--
       (A) a research institution;
       (B) an institution of higher education;
       (C) a corporation; and
       (D) a managing consortium formed among entities described 
     in subparagraphs (A) through (C).
       (5) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001).
       (6) Managing consortium.--The term ``managing consortium'' 
     means an entity that--
       (A) exists as of the date of enactment of this section;
       (B)(i) is an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986; and
       (ii) is exempt from taxation under section 501(a) of that 
     Code;
       (C) is experienced in planning and managing programs in 
     natural gas or other petroleum exploration and production 
     research, development, and demonstration; and
       (D) has demonstrated capabilities and experience in 
     representing the views and priorities of industry, 
     institutions of higher education and other research 
     institutions in formulating comprehensive research and 
     development plans and programs.
       (7) Program.--The term ``program'' means the program of 
     research, development, and demonstration established under 
     subsection (b)(1)(A).
       (8) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
     water depth that is equal to or greater than 1,500 meters.
       (9) Ultra-deepwater architecture.--The term ``ultra-
     deepwater architecture'' means the integration of 
     technologies to explore and produce natural gas or petroleum 
     products located at ultra-deepwater depths.
       (10) Ultra-deepwater resource.--The term ``ultra-deepwater 
     resource'' means natural gas or any other petroleum resource 
     (including methane hydrate) located in an ultra-deepwater 
     area.
       (11) Unconventional resource.--The term ``unconventional 
     resource'' means natural gas or any other petroleum resource 
     located in a formation on physically or economically 
     inaccessible land currently available for lease for purposes 
     of natural gas or other petroleum exploration or production.
       (b) Ultra-Deepwater and Unconventional Exploration and 
     Production Program.--
       (1) Establishment.--
       (A) In general.--The Secretary shall establish a program of 
     research into, and development and demonstration of, ultra-
     deepwater resource and unconventional resource exploration 
     and production technologies.
       (B) Location; implementation.--The program under this 
     subsection shall be carried out--
       (i) in areas on the outer Continental Shelf that, as of the 
     date of enactment of this section, are available for leasing; 
     and
       (ii) on unconventional resources.
       (2) Components.--The program shall include one or more 
     programs for long-term research into--
       (A) new deepwater ultra-deepwater resource and 
     unconventional resource exploration and production 
     technologies; or
       (B) environmental mitigation technologies for production of 
     ultra-deepwater resource and unconventional resource.

[[Page S1304]]

       (c) Advisory Committee.--
       (1) Establishment.--Not later than 30 days after the date 
     of enactment of this section, the Secretary shall establish 
     an advisory committee to be known as the ``Ultra-Deepwater 
     and Unconventional Resource Technology Advisory Committee''.
       (2) Membership.--
       (A) Composition.--Subject to subparagraph (B), the advisory 
     committee shall be composed of 7 members appointed by the 
     Secretary that--
       (i) have extensive operational knowledge of and experience 
     in the natural gas and other petroleum exploration and 
     production industry; and
       (ii) are not Federal employees or employees of contractors 
     to a federal agency.
       (B) Expertise.--Of the members of the advisory committee 
     appointed under subparagraph (A)--
       (i) at least 4 members shall have extensive knowledge of 
     ultra-deepwater resource exploration and production 
     technologies;
       (ii) at least 3 members shall have extensive knowledge of 
     unconventional resource exploration and production 
     technologies.
       (3) Duties.--The advisory committee shall advise the 
     Secretary in the implementation of this section.
       (4) Compensation.--A member of the advisory committee shall 
     serve without compensation but shall receive travel expenses, 
     including per diem in lieu of subsistence, in accordance with 
     applicable provisions under subchapter I of chapter 57 of 
     title 5, United States Code.
       (d) Awards.--
       (1) Types of awards.--
       (A) Ultra-deepwater resources.--
       (i) In general.--The Secretary shall make awards for 
     research into, and development and demonstration of, ultra-
     deepwater resource exploration and production technologies--

       (I) to maximize the value of the ultra-deepwater resources 
     of the United States;
       (II) to increase the supply of ultra-deepwater resources by 
     lowering the cost and improving the efficiency of exploration 
     and production of such resources; and
       (III) to improve safety and minimize negative environmental 
     impacts of that exploration and production.

       (ii) Ultra-deepwater architecture.--In furtherance of the 
     purposes described in clause (i), the Secretary shall, where 
     appropriate, solicit proposals from a managing consortium to 
     develop and demonstrate next-generation architecture for 
     ultra-deepwater resource production.
       (B) Unconventional resources.--The Secretary shall make 
     awards--
       (i) to carry out research into, and development and 
     demonstration of, technologies to maximize the value of 
     unconventional resources; and
       (ii) to develop technologies to simultaneously--

       (I) increase the supply of unconventional resources by 
     lowering the cost and improving the efficiency of exploration 
     and production of unconventional resources; and
       (II) improve safety and minimize negative environmental 
     impacts of that exploration and production.

       (2) Conditions.--An award made under this subsection shall 
     be subject to the following conditions:
       (A) Multiple entities.--If an award recipient is composed 
     of more than one eligible organization, the recipient shall 
     provide a signed contract, agreed to by all eligible 
     organizations comprising the award recipient, that defines, 
     in a manner that is consistent with all applicable law in 
     effect as of the date of the contract, all rights to 
     intellectual property for--
       (i) technology in existence as of that date; and
       (ii) future inventions conceived and developed using funds 
     provided under the award.
       (B) Components of application.--An application for an award 
     for a demonstration project shall describe with specificity 
     any intended commercial applications of the technology to be 
     demonstrated.
       (C) Cost sharing.--Non-federal cost sharing shall be in 
     accordance with section 1403.
       (e) Plan and funding.--
       (1) In general.--The Secretary, and where appropriate, a 
     managing consortium under subsection (d)(1)(A)(ii), shall 
     formulate annual operating and performance objectives, 
     develop multi-year technology roadmaps, and establish 
     research and development priorities for the funding of 
     activities under this section which will serve as guidelines 
     for making awards including cost-matching objectives.
       (2) Industry input.--In carrying out this program, the 
     Secretary shall promote maximum industry input through the 
     use of managing consortia or other organizations in planning 
     and executing the research areas and conducting workshops or 
     reviews to ensure that this program focuses on industry 
     problems and needs.
       (f) Auditing.--
       (1) In general.--The Secretary shall retain an independent, 
     commercial auditor to determine the extent to which funds 
     authorized by this section, provided through a managing 
     consortium, are expended in a manner consistent with the 
     purposes of this section.
       (2) Reports.--The auditor retained under paragraph (1) 
     shall submit to the Secretary, and the Secretary shall 
     transmit to the appropriate congressional committees, an 
     annual report that describes--
       (A) the findings of the auditor under paragraph (1); and
       (B) a plan under which the Secretary may remedy any 
     deficiencies identified by the auditor.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section.
       (h) Termination of Authority.--The authority provided by 
     this section shall terminate on September 30, 2009.
       (i) Savings Provision.--Nothing in this section is intended 
     to displace, duplicate or diminish any previously authorized 
     research activities of the Department of Energy.

     SEC. 1235. RESEARCH AND DEVELOPMENT FOR NEW NATURAL GAS 
                   TRANSPORTATION TECHNOLOGIES.

       The Secretary of Energy shall conduct a comprehensive five-
     year program for research, development and demonstration to 
     improve the reliability, efficiency, safety and integrity of 
     the natural gas transportation and distribution 
     infrastructure and for distributed energy resources 
     (including microturbines, fuel cells, advanced engine-
     generators, gas turbines, reciprocating engines, hybrid power 
     generation systems, and all ancillary equipment for dispatch, 
     control and maintenance).

     SEC. 1236. AUTHORIZATION OF APPROPRIATIONS FOR OFFICE OF 
                   ARCTIC ENERGY.

       There are authorized to be appropriated to the Secretary 
     for the Office of Arctic Energy under section 3197 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (Public Law 106-398) such sums as may be necessary, 
     but not to exceed $25,000,000 for each of fiscal years 2003 
     through 2011.

                       Subtitle D--Nuclear Energy

     SEC. 1241. ENHANCED NUCLEAR ENERGY RESEARCH AND DEVELOPMENT.

       (a) Program Direction.--The Secretary shall conduct an 
     energy research, development, demonstration, and technology 
     deployment program to enhance nuclear energy.
       (b) Program Goals.--The program shall--
       (1) support research related to existing United States 
     nuclear power reactors to extend their lifetimes and increase 
     their reliability while optimizing their current operations 
     for greater efficiencies;
       (2) examine advanced proliferation-resistant and passively 
     safe reactor designs, new reactor designs with higher 
     efficiency, lower cost, and improved safety, proliferation-
     resistant and high burn-up nuclear fuels, minimization of 
     generation of radioactive materials, improved nuclear waste 
     management technologies, and improved instrumentation 
     science;
       (3) attract new students and faculty to the nuclear 
     sciences and nuclear engineering and related fields 
     (including health physics and nuclear and radiochemistry) 
     through--
       (A) university-based fundamental research for existing 
     faculty and new junior faculty;
       (B) support for the re-licensing of existing training 
     reactors at universities in conjunction with industry; and
       (C) completing the conversion of existing training reactors 
     with proliferation resistant fuels that are low enriched and 
     to adapt those reactors to new investigative uses;
       (4) maintain a national capability and infrastructure to 
     produce medical isotopes and ensure a well trained cadre of 
     nuclear medicine specialists in partnership with industry;
       (5) ensure that our nation has adequate capability to power 
     future satellite and space missions; and
       (6) maintain, where appropriate through a prioritization 
     process, a balanced research infrastructure so that future 
     research programs can use these facilities.
       (c) Authorization of Appropriations.--
       (1) Core nuclear research programs.--There are authorized 
     to be appropriated to the Secretary for carrying out 
     research, development, demonstration, and technology 
     deployment activities under subsection (b)(1) through (3)--
       (A) $100,000,000 for fiscal year 2003;
       (B) $110,000,000 for fiscal year 2004;
       (C) $120,000,000 for fiscal year 2005; and
       (D) $130,000,000 for fiscal year 2006.
       (2) Supporting nuclear activities.--There are authorized to 
     be appropriated to the Secretary for carrying out activities 
     under subsection (b)(4) through (6), as well as nuclear 
     facilities management and program direction--
       (A) $200,000,000 for fiscal year 2003;
       (B) $202,000,000 for fiscal year 2004;
       (C) $207,000,000 for fiscal year 2005; and
       (D) $212,000,000 for fiscal year 2006.

     SEC. 1242. 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;

[[Page S1305]]

       (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 re-licensing 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 1241(c)(1), the following amounts 
     are authorized for activities under this section--
       (1) $33,000,000 for fiscal year 2003;
       (2) $37,900,000 for fiscal year 2004;
       (3) $43,600,000 for fiscal year 2005; and
       (4) $50,100,000 for fiscal year 2006.

     SEC. 1243. NUCLEAR ENERGY RESEARCH INITIATIVE.

       (a) Establishment.--The Secretary shall support a Nuclear 
     Energy Research Initiative for grants for research relating 
     to nuclear energy.
       (b) Authorization of Appropriations.--From amounts 
     authorized under section 1241(c), there are authorized to be 
     appropriated to the Secretary for activities under this 
     section such sums as are necessary for each fiscal year.

     SEC. 1244. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.

       (a) Establishment.--The Secretary shall support a Nuclear 
     Energy Plant Optimization Program for grants to improve 
     nuclear energy plant reliability, availability, and 
     productivity. Notwithstanding section 1403, the program shall 
     require industry cost-sharing of at least 50 percent and be 
     subject to annual review by the Nuclear Energy Research 
     Advisory Committee of the Department.
       (b) Authorization of Appropriations.--From amounts 
     authorized under section 1241(c), there are authorized to be 
     appropriated to the Secretary for activities under this 
     section such sums as are necessary for each fiscal year.

     SEC. 1245. NUCLEAR ENERGY TECHNOLOGY DEVELOPMENT PROGRAM.

       (a) Establishment.--The Secretary shall support a Nuclear 
     Energy Technology Development Program to develop a technology 
     roadmap to design and develop new nuclear energy powerplants 
     in the United States.
       (b) Generation IV Reactor Study.--The Secretary shall, as 
     part of the program under subsection (a), also conduct a 
     study of Generation IV nuclear energy systems, including 
     development of a technology roadmap and performance of 
     research and development necessary to make an informed 
     technical decision regarding the most promising candidates 
     for commercial deployment. The study shall examine advanced 
     proliferation-resistant and passively safe reactor designs, 
     new reactor designs with higher efficiency, lower cost and 
     improved safety, proliferation-resistant and high burn-up 
     fuels, minimization of generation of radioactive materials, 
     improved nuclear waste management technologies, and improved 
     instrumentation science. Not later than December 31, 2002, 
     the Secretary shall submit to Congress a report describing 
     the results of the study.
       (c) Authorization of Appropriations.--From amounts 
     authorized to be appropriated under section 1241(c), there 
     are authorized to be appropriated to the Secretary for 
     activities under this section such sums as are necessary for 
     each fiscal year.

                 Subtitle E--Fundamental Energy Science

     SEC. 1251. ENHANCED PROGRAMS IN FUNDAMENTAL ENERGY SCIENCE.

       (a) Program Direction.--The Secretary, acting through the 
     Office of Science, shall--
       (1) conduct a comprehensive program of fundamental 
     research, including research on chemical sciences, physics, 
     materials sciences, biological and environmental 
     sciences, geosciences, engineering sciences, plasma 
     sciences, mathematics, and advanced scientific computing;
       (2) maintain, upgrade and expand the scientific user 
     facilities maintained by the Office of Science and ensure 
     that they are an integral part of the departmental mission 
     for exploring the frontiers of fundamental science;
       (3) maintain a leading-edge research capability in the 
     energy-related aspects of nanoscience and nanotechnology, 
     advanced scientific computing and genome research; and
       (4) ensure that its fundamental science programs, where 
     appropriate, help inform the applied research and development 
     programs of the Department.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out 
     research, development, demonstration, and technology 
     deployment activities under this subtitle--
       (1) $3,785,000,000 for fiscal year 2003;
       (2) $4,153,000,000 for fiscal year 2004;
       (3) $4,586,000,000 for fiscal year 2005; and
       (4) $5,000,000,000 for fiscal year 2006.

     SEC. 1252. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

       (a) Establishment.--The Secretary, acting through the 
     Office of Science, shall support a program of research and 
     development in nanoscience and nanoengineering consistent 
     with the Department's statutory authorities related to 
     research and development. The program shall include efforts 
     to further the understanding of the chemistry, physics, 
     materials science and engineering of phenomena on the scale 
     of 1 to 100 nanometers.
       (b) Duties of the Office of Science.--In carrying out the 
     program under this section, the Office of Science shall--
       (1) support both individual investigators and 
     multidisciplinary teams of investigators;
       (2) pursuant to subsection (c), develop, plan, construct, 
     acquire, or operate special equipment or facilities for the 
     use of investigators conducting research and development in 
     nanoscience and nanoengineering;
       (3) support technology transfer activities to benefit 
     industry and other users of nanoscience and nanoengineering; 
     and
       (4) coordinate research and development activities with 
     industry and other federal agencies.
       (c) Nanoscience and Nanoengineering Research Centers and 
     Major Instrumentation.--
       (1) Authorization.--From amounts authorized to be 
     appropriated under section 1251(b), the amounts specified 
     under subsection (d)(2) shall, subject to appropriations, be 
     available for projects to develop, plan, construct, acquire, 
     or operate special equipment, instrumentation, or facilities 
     for investigators conducting research and development in 
     nanoscience and nanoengineering.
       (2) Projects.--Projects under paragraph (1) may include the 
     measurement of properties at the scale of 1 to 100 
     nanometers, manipulation at such scales, and the integration 
     of technologies based on nanoscience or nanoengineering into 
     bulk materials or other technologies.
       (3) Facilities.--Facilities under paragraph (1) may include 
     electron microcharacterization facilities, microlithography 
     facilities, scanning probe facilities and related 
     instrumentation science.
       (4) Collaboration.--The Secretary shall encourage 
     collaborations among universities, laboratories and industry 
     at facilities under this subsection. At least one facility 
     under this subsection shall have a specific mission of 
     technology transfer to other institutions and to industry.
       (d) Authorization of Appropriations.--
       (1) Total authorization.--From amounts authorized to be 
     appropriated under section 1251(b), the following amounts are 
     authorized for activities under this section--
       (A) $270,000,000 for fiscal year 2003;
       (B) $290,000,000 for fiscal year 2004;
       (C) $310,000,000 for fiscal year 2005; and
       (D) $330,000,000 for fiscal year 2006.
       (2) Nanoscience and nanoengineering research centers and 
     major instrumentation.--Of the amounts under paragraph (1), 
     the following amounts are authorized to carry out subsection 
     (c)--
       (A) $135,000,000 for fiscal year 2003;
       (B) $150,000,000 for fiscal year 2004;
       (C) $120,000,000 for fiscal year 2005; and
       (D) $100,000,000 for fiscal year 2006.

     SEC. 1253. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

       (a) Establishment.--The Secretary, acting through the 
     Office of Science, shall support a program to advance the 
     Nation's computing capability across a diverse set of grand 
     challenge computationally based science problems related to 
     departmental missions.
       (b) Duties of the Office of Science.--In carrying out the 
     program under this section, the Office of Science shall--
       (1) advance basic science through computation by developing 
     software to solve grand challenge science problems on new 
     generations of computing platforms,
       (2) enhance the foundations for scientific computing by 
     developing the basic mathematical and computing systems 
     software needed to take full advantage of the computing 
     capabilities of computers with peak speeds of 100 teraflops 
     or more, some of which may be unique to the scientific 
     problem of interest,
       (3) enhance national collaboratory and networking 
     capabilities by developing software to integrate 
     geographically separated researchers into effective research 
     teams and to facilitate access to and movement and analysis 
     of large (petabyte) data sets, and
       (4) maintain a robust scientific computing hardware 
     infrastructure to ensure that the computing resources needed 
     to address DOE missions are available; explore new computing 
     approaches and technologies that promise to advance 
     scientific computing.

[[Page S1306]]

       (c) High-Performance Computing Act Program.--Section 203(a) 
     of the High-Performance Computing Act of 1991 (15 U.S.C. 
     5523(a)) is amended--
       (1) in paragraph (3), by striking ``and'';
       (2) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (3) by adding after paragraph (4) the following: ``(5) 
     conduct an integrated program of research, development, and 
     provision of facilities to develop and deploy to scientific 
     and technical users the high-performance computing and 
     collaboration tools needed to fulfill the statutory missions 
     of the Department of Energy in conducting basic and applied 
     energy research.''.
       (d) Coordination With the DOE National Nuclear Security 
     Agency Accelerated Strategic Computing Initiative and Other 
     National Computing Programs.--The Secretary shall ensure that 
     this program, to the extent feasible, is integrated and 
     consistent with--
       (1) the Accelerated Strategic Computing Initiative of the 
     National Nuclear Security Agency; and
       (2) other national efforts related to advanced scientific 
     computing for science and engineering.
       (e) Authorization of Appropriations.--From amounts 
     authorized under section 1251(b), the following amounts are 
     authorized for activities under this section--
       (1) $285,000,000 for fiscal year 2003;
       (2) $300,000,000 for fiscal year 2004;
       (3) $310,000,000 for fiscal year 2005; and
       (4) $320,000,000 for fiscal year 2006.

     SEC. 1254. FUSION ENERGY SCIENCES PROGRAM AND PLANNING.

       (a) Overall Plan for Fusion Energy Sciences Program.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this subtitle, the Secretary, after consultation 
     with the Fusion Energy Sciences Advisory Committee, shall 
     develop and transmit to the Congress a plan to ensure a 
     strong scientific base for the Fusion Energy Sciences Program 
     within the Office of Science and to enable the experiments 
     described in subsections (b) and (c).
       (2) Objectives of plan.--The plan under this subsection 
     shall include as its objectives--
       (A) to ensure that existing fusion research facilities and 
     equipment are more fully utilized with appropriate 
     measurements and control tools;
       (B) to ensure a strengthened fusion science theory and 
     computational base;
       (C) to encourage and ensure that the selection of and 
     funding for new magnetic and inertial fusion research 
     facilities is based on scientific innovation and cost 
     effectiveness;
       (D) to improve the communication of scientific results and 
     methods between the fusion science community and the wider 
     scientific community;
       (E) to ensure that adequate support is provided to optimize 
     the design of the magnetic fusion burning plasma experiments 
     referred to in subsections (b) and (c); and
       (F) to ensure that inertial confinement fusion facilities 
     are utilized to the extent practicable for the purpose of 
     inertial fusion energy research and development.
       (b) Plan for United States Fusion Experiment.--
       (1) In general.--The Secretary, after consultation with the 
     Fusion Energy Sciences Advisory Committee, shall develop a 
     plan for construction in the United States of a magnetic 
     fusion burning plasma experiment for the purpose of 
     accelerating scientific understanding of fusion plasmas. The 
     Secretary shall request a review of the plan by the National 
     Academy of Sciences and shall transmit the plan and the 
     review to the Congress by July 1, 2004.
       (2) Requirements of plan.--The plan described in paragraph 
     (1) shall--
       (A) address key burning plasma physics issues; and
       (B) include specific information on the scientific 
     capabilities of the proposed experiment, the relevance of 
     these capabilities to the goal of practical fusion energy, 
     and the overall design of the experiment including its 
     estimated cost and potential construction sites.
       (c) Plan for Participation in an International 
     Experiment.--In addition to the plan described in subsection 
     (b), the Secretary, after consultation with the Fusion Energy 
     Sciences Advisory Committee, may also develop a plan for 
     United States participation in an international burning 
     plasma experiment for the same purpose, whose construction is 
     found by the Secretary to be highly likely and where United 
     States participation is cost-effective relative to the cost 
     and scientific benefits of a domestic experiment described in 
     subsection (b). If the Secretary elects to develop a plan 
     under this subsection, he shall include the information 
     described in subsection (b)(2), and an estimate of the cost 
     of United States participation in such an international 
     experiment. The Secretary shall request a review by the 
     National Academy of Sciences of a plan developed under this 
     subsection, and shall transmit the plan and the review to the 
     Congress no later than July 1, 2004.
       (d) Authorization for Research and Development.--The 
     Secretary, through the Office of Science, may conduct any 
     research and development necessary to fully develop the plans 
     described in this section.
       (e) Authorization of Appropriations.--From amounts 
     authorized under section 1251(b) for fiscal year 2003, 
     $335,000,000 are authorized for fiscal year 2003 for 
     activities under this section and for activities of the 
     Fusion Energy Sciences Program.

        Subtitle F--Energy, Safety, and Environmental Protection

     SEC. 1261. CRITICAL ENERGY INFRASTRUCTURE PROTECTION RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--The Secretary shall carry out a research, 
     development, demonstration and technology deployment program, 
     in partnership with industry, on critical energy 
     infrastructure protection, consistent with the roles and 
     missions outlined for the Secretary in Presidential Decision 
     Directive 63, entitled ``Critical Infrastructure 
     Protection''. The program shall have the following goals:
       (1) Increase the understanding of physical and information 
     system disruptions to the energy infrastructure that could 
     result in cascading or widespread regional outages.
       (2) Develop energy infrastructure assurance ``best 
     practices'' through vulnerability and risk assessments.
       (3) Protect against, mitigate the effect of, and improve 
     the ability to recover from disruptive incidents within the 
     energy infrastructure.
       (b) Program Scope.--The program under subsection (a) shall 
     include research, development, deployment, technology 
     demonstration for----
       (1) analysis of energy infrastructure interdependencies to 
     quantify the impacts of system vulnerabilities in relation to 
     each other;
       (2) probabilistic risk assessment of the energy 
     infrastructure to account for unconventional and terrorist 
     threats;
       (3) incident tracking and trend analysis tools to assess 
     the severity of threats and reported incidents to the energy 
     infrastructure; and
       (4) integrated multi-sensor, warning and mitigation 
     technologies to detect, integrate, and localize events 
     affecting the energy infrastructure including real time 
     control to permit the reconfiguration of energy delivery 
     systems.
       (c) Regional Coordination.--The program under this section 
     shall cooperate with Departmental activities to promote 
     regional coordination under section 102 of this Act, to 
     ensure that the technologies and assessments developed by the 
     program are transferred in a timely manner to State and local 
     authorities, and to the energy industries.
       (d) Coordination With Industry Research Organizations.--The 
     Secretary may enter into grants, contracts, and cooperative 
     agreements with industry research organizations to facilitate 
     industry participation in research under this section and to 
     fulfill applicable cost-sharing requirements.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $25,000,000 for fiscal year 2003;
       (2) $26,000,000 for fiscal year 2004;
       (3) $27,000,000 for fiscal year 2005; and
       (4) $28,000,000 for fiscal year 2006.
       (f) Critical Energy Infrastructure Facility Defined.--For 
     purposes of this section, the term ``critical energy 
     infrastructure facility'' means a physical or cyber-based 
     system or service for the generation, transmission or 
     distribution of electrical energy, or the production, 
     refining, transportation, or storage of petroleum, natural 
     gas, or petroleum product, the incapacity or destruction of 
     which would have a debilitating impact on the defense or 
     economic security of the United States. The term shall not 
     include a facility that is licensed by the Nuclear Regulatory 
     Commission under section 103 or 104b of the Atomic Energy Act 
     of 1954 (42 U.S.C. 2133 and 2134(b)).

     SEC. 1262. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY 
                   RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary of Transportation, in 
     coordination with the Secretary of Energy, shall develop and 
     implement an accelerated cooperative program of research and 
     development to ensure the integrity of natural gas and 
     hazardous liquid pipelines. This research and development 
     program shall include materials inspection techniques, risk 
     assessment methodology, and information systems surety.
       (b) Purpose.--The purpose of the cooperative research 
     program shall be to promote research and development to--
       (1) ensure long-term safety, reliability and service life 
     for existing pipelines;
       (2) expand capabilities of internal inspection devices to 
     identify and accurately measure defects and anomalies;
       (3) develop inspection techniques for pipelines that cannot 
     accommodate the internal inspection devices available on the 
     date of enactment;
       (4) develop innovative techniques to measure the structural 
     integrity of pipelines to prevent pipeline failures;
       (5) develop improved materials and coatings for use in 
     pipelines;
       (6) improve the capability, reliability, and practicality 
     of external leak detection devices;
       (7) identify underground environments that might lead to 
     shortened service life;
       (8) enhance safety in pipeline siting and land use;
       (9) minimize the environmental impact of pipelines;
       (10) demonstrate technologies that improve pipeline safety, 
     reliability, and integrity;
       (11) provide risk assessment tools for optimizing risk 
     mitigation strategies; and
       (12) provide highly secure information systems for 
     controlling the operation of pipelines.

[[Page S1307]]

       (c) Areas.--In carrying out this section, the Secretary of 
     Transportation, in coordination with the Secretary of Energy, 
     shall consider research and development on natural gas, crude 
     oil, and petroleum product pipelines for--
       (1) early crack, defect, and damage detection, including 
     real-time damage monitoring;
       (2) automated internal pipeline inspection sensor systems;
       (3) land use guidance and set back management along 
     pipeline rights-of-way for communities;
       (4) internal corrosion control;
       (5) corrosion-resistant coatings;
       (6) improved cathodic protection;
       (7) inspection techniques where internal inspection is not 
     feasible, including measurement of structural integrity;
       (8) external leak detection, including portable real-time 
     video imaging technology, and the advancement of computerized 
     control center leak detection systems utilizing real-time 
     remote field data input;
       (9) longer life, high strength, non-corrosive pipeline 
     materials;
       (10) assessing the remaining strength of existing pipes;
       (11) risk and reliability analysis models, to be used to 
     identify safety improvements that could be realized in the 
     near term resulting from analysis of data obtained from a 
     pipeline performance tracking initiative;
       (12) identification, monitoring, and prevention of outside 
     force damage, including satellite surveillance; and
       (13) any other areas necessary to ensuring the public 
     safety and protecting the environment.
       (d) Research and Development Program Plan.--Within 240 days 
     after the date of enactment of this section, the Secretary of 
     Transportation, in coordination with the Secretary of Energy 
     and the Pipeline Integrity Technical Advisory Committee, 
     shall prepare and submit to the Congress a five-year program 
     plan to guide activities under this section. In preparing the 
     program plan, the Secretary shall consult with appropriate 
     representatives of the natural gas, crude oil, and petroleum 
     product pipeline industries to select and prioritize 
     appropriate project proposals. The Secretary may also seek 
     the advice of utilities, manufacturers, institutions of 
     higher learning, Federal agencies, the pipeline research 
     institutions, national laboratories, State pipeline safety 
     officials, environmental organizations, pipeline safety 
     advocates, and professional and technical societies.
       (e) Implementation.--The Secretary of Transportation shall 
     have primary responsibility for ensuring the five-year plan 
     provided for in subsection (d) is implemented as intended by 
     this section. In carrying out the research, development, and 
     demonstration activities under this section, the Secretary of 
     Transportation and the Secretary of Energy may use, to the 
     extent authorized under applicable provisions of law, 
     contracts, cooperative agreements, cooperative research and 
     development agreements under the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3701 et seq.), grants, 
     joint ventures, other transactions, and any other form of 
     agreement available to the Secretary consistent with the 
     recommendations of the Advisory Committee.
       (f) Reports to Congress.--The Secretary of Transportation 
     shall report to the Congress annually as to the status and 
     results to date of the implementation of the research and 
     development program plan. The report shall include the 
     activities of the Departments of Transportation and Energy, 
     the natural laboratories, universities, and any other 
     research organizations, including industry research 
     organizations.
       (g) Pipeline Integrity Technical Advisory Committee.--
       (1) Establishment.--The Secretary of Transportation shall 
     enter into appropriate arrangements with the National Academy 
     of Sciences to establish and manage the Pipeline Integrity 
     Technical Advisory Committee for the purpose of advising the 
     Secretary of Transportation and the Secretary of Energy on 
     the development and implementation of the research and 
     development program plan under subsection (d). The Advisory 
     Committee shall have an ongoing role in evaluating the 
     progress and results of the research, development, and 
     demonstration carried out under this section.
       (2) Membership.--The National Academy of Sciences shall 
     appoint the members of the Pipeline Integrity Technical 
     Advisory Committee after consultation with the Secretary of 
     Transportation and the Secretary of Energy. Members appointed 
     to the Advisory Committee should have the necessary 
     qualifications to provide technical contributions to the 
     purposes of the Advisory Committee.
       (h) Authorization of Appropriations.--
       (1) There are authorized to be appropriated to the 
     Secretary of Transportation for carrying out this section 
     $3,000,000, to be derived from user fees under section 60301 
     of title 49, United States Code, for each of the fiscal years 
     2003 through 2006.
       (2) Of the amounts available in the Oil Spill Liability 
     Trust Fund established by section 9509 of the Internal 
     Revenue Code of 1986 (26 U.S.C. 9509), $3,000,000 shall be 
     transferred to the Secretary of Transportation, as provided 
     in appropriation Acts, to carry out programs for detection, 
     prevention and mitigation of oil spills under this section 
     for each of the fiscal years 2003 through 2006.
       (3) There are authorized to be appropriated to the 
     Secretary of Energy for carrying out this section such sums 
     as may be necessary for each of the fiscal years 2003 through 
     2006.

     SEC. 1263. RESEARCH AND DEMONSTRATION FOR REMEDIATION OF 
                   GROUNDWATER FROM ENERGY ACTIVITIES.

       (a) In General.--The Secretary shall carry out a research, 
     development, demonstration, and technology deployment program 
     to improve methods for environmental restoration of 
     groundwater contaminated by energy activities, including oil 
     and gas production, surface and underground mining of coal, 
     and in-situ extraction of energy resources.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $10,000,000 for each of fiscal years 2003 through 2006.

      TITLE XIII--CLIMATE CHANGE-RELATED RESEARCH AND DEVELOPMENT

               Subtitle A--Department of Energy Programs

     SEC. 1301. PROGRAM GOALS.

       The goals of the research, development, demonstration, and 
     technology deployment programs under this subtitle shall be 
     to--
       (1) provide a sound scientific understanding of the human 
     and natural forces that influence the Earth's climate system, 
     particularly those forces related to energy production and 
     use;
       (2) help mitigate climate change from human activities 
     related to energy production and use; and
       (3) reduce, avoid, or sequester emissions of greenhouse 
     gases in furtherance of the goals of the United National 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992, in a manner that does not result in serious harm 
     to the U.S. economy.

     SEC. 1302. DEPARTMENT OF ENERGY GLOBAL CHANGE SCIENCE 
                   RESEARCH.

       (a) Program Direction.--The Secretary, acting through the 
     Office of Science, shall conduct a comprehensive research 
     program to understand and address the effects of energy 
     production and use on the global climate system.
       (b) Program Elements.--
       (1) Climate modeling.--The Secretary shall--
       (A) conduct observational and analytical research to 
     acquire and interpret the data needed to describe the 
     radiation balance from the surface of the Earth to the top of 
     the atmosphere;
       (B) determine the factors responsible for the Earth's 
     radiation balance and incorporate improved understanding of 
     such factors in climate models;
       (C) improve the treatment of aerosols and clouds in climate 
     models;
       (D) reduce the uncertainty in decade-to-century model-based 
     projections of climate change; and
       (E) increase the availability and utility of climate change 
     simulations to researchers and policy makers interested in 
     assessing the relationship between energy and climate change.
       (2) Carbon cycle.--The Secretary shall--
       (A) carry out field research and modeling activities--
       (i) to understand and document the net exchange of carbon 
     dioxide between major terrestrial ecosystems and the 
     atmosphere; or
       (ii) to evaluate the potential of proposed methods of 
     carbon sequestration;
       (B) develop and test carbon cycle models; and
       (C) acquire data and develop and test models to simulate 
     and predict the transport, transformation, and fate of 
     energy-related emissions in the atmosphere.
       (3) Ecological processes.--The Secretary shall carry out 
     long-term experiments of the response of intact terrestrial 
     ecosystems to--
       (A) alterations in climate and atmospheric composition; or
       (B) land-use changes that affect ecosystem extent and 
     function.
       (4) Integrated assessment.--The Secretary shall develop and 
     improve methods and tools for integrated analyses of the 
     climate change system from emissions of aerosols and 
     greenhouse gases to the consequences of these emissions on 
     climate and the resulting effects of human-induced climate 
     change on economic and social systems, with emphasis on 
     critical gaps in integrated assessment modeling, including 
     modeling of technology innovation and diffusion and the 
     development of metrics of economic costs of climate change 
     and policies for mitigating or adapting to climate change.
       (c) Authorization of Appropriations.--From amounts 
     authorized under section 1440(c), there are authorized to be 
     appropriated to the Secretary for carrying out activities 
     under this section--
       (1) $150,000,000 for fiscal year 2003;
       (2) $175,000,000 for fiscal year 2004;
       (3) $200,000,000 for fiscal year 2005; and
       (4) $230,000,000 for fiscal year 2006.-
       (d) Limitation on Funds.--Funds authorized to be 
     appropriated under this section shall not be used for the 
     development, demonstration, or deployment of technology to 
     reduce, avoid, or sequester greenhouse gas emissions.

     SEC. 1303. AMENDMENTS TO THE FEDERAL NONNUCLEAR RESEARCH AND 
                   DEVELOPMENT ACT OF 1974.

       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 the following:

[[Page S1308]]

       ``(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.''.

             Subtitle B--Department of Agriculture Programs

     SEC. 1311. CARBON SEQUESTRATION BASIC AND APPLIED RESEARCH.

       (a) Basic Research.--
       (1) In general.--The Secretary of Agriculture shall carry 
     out research in the areas of soil science that promote 
     understanding of--
       (A) the net sequestration of organic carbon in soil; and
       (B) net emissions of other greenhouse gases from 
     agriculture.
       (2) Agricultural research service.--The Secretary of 
     Agriculture, acting through the Agricultural Research 
     Service, shall collaborate with other Federal agencies in 
     developing data and carrying out research addressing soil 
     carbon fluxes (losses and gains) and net emissions of methane 
     and nitrous oxide from cultivation and animal management 
     activities.
       (3) Cooperative state research extension and education 
     service.--
       (A) In general.--The Secretary of Agriculture, acting 
     through the Cooperative State Research Extension and 
     Education Service, shall establish a competitive grant 
     program to carry out research on the matters described in 
     paragraph (1) in land grant universities and other research 
     institutions.
       (B) Consultation on research topics.-- Before issuing a 
     request for proposals for basic research under paragraph (1), 
     the Cooperative State Research, Education, and Extension 
     Service shall consult with the Agricultural Research Service 
     to ensure that proposed research areas are complementary with 
     and do not duplicate research projects underway at the 
     Agricultural Research Service or other Federal agencies.
       (b) Applied Research.--
       (1) In general.--The Secretary of Agriculture shall carry 
     out applied research in the areas of soil science, agronomy, 
     agricultural economics and other agricultural sciences to--
       (A) promote understanding of--
       (i) how agricultural and forestry practices affect the 
     sequestration of organic and inorganic carbon in soil and net 
     emissions of other greenhouse gases;
       (ii) how changes in soil carbon pools are cost-effectively 
     measured, monitored, and verified; and
       (iii) how public programs and private market approaches can 
     be devised to incorporate carbon sequestration in a broader 
     societal greenhouse gas emission reduction effort;
       (B) develop methods for establishing baselines for 
     measuring the quantities of carbon and other greenhouse gases 
     sequestered; and
       (C) evaluate leakage and performance issues.
       (2) Requirements.--To the maximum extent practicable, 
     applied research under paragraph (1) shall--
       (A) draw on existing technologies and methods; and
       (B) strive to provide methodologies that are accessible to 
     a nontechnical audience.
       (3) Minimization of adverse environmental impacts.--All 
     applied research under paragraph (1) shall be conducted with 
     an emphasis on minimizing adverse environmental impacts.
       (4) Natural resources conservation service.--The Secretary 
     of Agriculture, acting through the Natural Resources 
     Conservation Service, shall collaborate with other Federal 
     agencies, including the National Institute of Standards and 
     Technology, in developing new measuring techniques and 
     equipment or adapting existing techniques and equipment to 
     enable cost-effective and accurate monitoring and 
     verification, for a wide range of agricultural and forestry 
     practices, of--
       (A) changes in soil carbon content in agricultural soils, 
     plants, and trees; and
       (B) net emissions of other greenhouse gases.
       (5) Cooperative state research extension and education 
     service.--
       (A) In general.--The Secretary of Agriculture, acting 
     through the Cooperative State Research Extension and 
     Education Service, shall establish a competitive grant 
     program to encourage research on the matters described in 
     paragraph (1) by land grant universities and other research 
     institutions.
       (B) Consultation on research topics.--Before issuing a 
     request for proposals for applied research under paragraph 
     (1), the Cooperative State Research, Education, and Extension 
     Service shall consult with the National Resources 
     Conservation Service and the Agricultural Research Service to 
     ensure that proposed research areas are complementary with 
     and do not duplicate research projects underway at the 
     Agricultural Research Service or other Federal agencies.
       (c) Research Consortia.--
       (1) In general.--The Secretary of Agriculture may designate 
     not more than 2 research consortia to carry out research 
     projects under this section, with the requirement that the 
     consortia propose to conduct basic, research under subsection 
     (a) and applied research under subsection (b).
       (2) Selection.--The consortia shall be selected in a 
     competitive manner by the Cooperative State Research, 
     Education, and Extension Service.
       (3) Eligible consortium participants.--Entities eligible to 
     participate in a consortium include--
       (A) land grant colleges and universities;
       (B) private research institutions;
       (C) State geological surveys;
       (D) agencies of the Department of Agriculture;
       (E) research centers of the National Aeronautics and Space 
     Administration and the Department of Energy;
       (F) other Federal agencies;
       (G) representatives of agricultural businesses and 
     organizations with demonstrated expertise in these areas; and
       (H) representatives of the private sector with demonstrated 
     expertise in these areas.
       (4) Reservation of funding.--If the Secretary of 
     Agriculture designates 1 or 2 consortia, the Secretary of 
     Agriculture shall reserve for research projects carried out 
     by the consortium or consortia not more than 25 percent of 
     the amounts made available to carry out this section for a 
     fiscal year.
       (d) Standards of Precision.--
       (1) Conference.--Not later than 3 years after the date of 
     enactment of this subtitle, the Secretary of Agriculture, 
     acting through the Agricultural Research Service and in 
     consultation with the Natural Resources Conservation Service, 
     shall convene a conference of key scientific experts on 
     carbon sequestration and measurement techniques from various 
     sectors (including the government, academic, and private 
     sectors) to--
       (A) discuss benchmark standards of precision for measuring 
     soil carbon content and net emissions of other greenhouse 
     gases;
       (B) designate packages of measurement techniques and 
     modeling approaches to achieve a level of precision agreed on 
     by the participants in the conference; and
       (C) evaluate results of analyses on baseline, permanence, 
     and leakage issues.
       (2) Development of benchmark standards.--
       (A) In general.--The Secretary shall develop benchmark 
     standards for measuring the carbon content of soils and 
     plants (including trees) based on--
       (i) information from the conference under paragraph (1);
       (ii) research conducted under this section; and
       (iii) other information available to the Secretary.
       (B) Opportunity for public comment.--The Secretary shall 
     provide an opportunity for the public to comment on benchmark 
     standards developed under subparagraph (A).
       (3) Report.--Not later than 180 days after the conclusion 
     of the conference under paragraph (1), the Secretary of 
     Agriculture shall submit to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     on the results of the conference.
       (e) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section $25,000,000 for each of fiscal years 
     2003 through 2006.
       (2) Allocation.--Of the amounts made available to carry out 
     this section for a fiscal year, at least 50 percent shall be 
     allocated for competitive grants by the Cooperative State 
     Research, Education, and Extension Service.

     SEC. 1312. CARBON SEQUESTRATION DEMONSTRATION PROJECTS AND 
                   OUTREACH.

       (a) Demonstration Projects.--
       (1) Development of monitoring programs.--
       (A) In general.--The Secretary of Agriculture, acting 
     through the Natural Resources Conservation Service and in 
     cooperation with local extension agents, experts from land 
     grant universities, and other local agricultural or 
     conservation organizations, shall develop user-friendly, 
     programs that combine measurement tools and modeling 
     techniques into integrated packages to monitor the carbon 
     sequestering benefits of conservation practices and net 
     changes in greenhouse gas emissions.
       (B) Benchmark levels of precision.--The programs developed 
     under subparagraph (A)

[[Page S1309]]

     shall strive to achieve benchmark levels of precision in 
     measurement in a cost-effective manner.
       (2) Projects.--
       (A) In general.--The Secretary of Agriculture, acting 
     through the Farm Service Agency, shall establish a program 
     under which projects use the monitoring programs developed 
     under paragraph (1) to demonstrate the feasibility of methods 
     of measuring, verifying, and monitoring--
       (i) changes in organic carbon content and other carbon 
     pools in agricultural soils, plants, and trees; and
       (ii) net changes in emissions of other greenhouse gases.
       (B) Evaluation of implications.--The projects under 
     subparagraph (A) shall include evaluation of the implications 
     for reassessed baselines, carbon or other greenhouse gas 
     leakage, and permanence of sequestration.
       (C) Submission of proposals.--Proposals for projects under 
     subparagraph (A) shall be submitted by the appropriate agency 
     of each State, in cooperation with interested local 
     jurisdictions and State agricultural and conservation 
     organizations.
       (D) Limitation.--Not more than 10 projects under 
     subparagraph (A) may be approved in conjunction with applied 
     research projects under section 1331(b) until benchmark 
     measurement and assessment standards are established under 
     section 1331(d).
       (b) Outreach.--
       (1) In general.--The Cooperative State Research Extension 
     and Education Service shall widely disseminate information 
     about the economic and environmental benefits that can be 
     generated by adoption of conservation practices (including 
     benefits from increased sequestration of carbon and reduced 
     emission of other greenhouse gases).
       (2) Project results.--The Cooperative State Research 
     Extension and Education Service shall inform farmers, 
     ranchers, and State agricultural and energy offices in each 
     State of--
       (A) the results of demonstration projects under subsection 
     (a)(2) in the State; and
       (B) the ways in which the methods demonstrated in the 
     projects might be applicable to the operations of those 
     farmers and ranchers.
       (3) Policy outreach.--On a periodic basis, the Cooperative 
     State Research Extension and Education Service shall 
     disseminate information on the policy nexus between global 
     climate change mitigation strategies and agriculture, so that 
     farmers and ranchers may better understand the global 
     implications of the activities of farmers and ranchers.
       (c) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section $10,000,000 for each of fiscal years 
     2003 through 2006.
       (2) Allocation.--Of the amounts made available to carry out 
     this section for a fiscal year, at least 50 percent shall be 
     allocated for demonstration projects under subsection (a)(2).

          Subtitle C--Clean Energy Technology Exports Program

     SEC. 1321. CLEAN ENERGY TECHNOLOGY EXPORTS PROGRAM.

       (a) Definitions.--In this section:
       (1) Clean energy technology.--The term ``clean energy 
     technology'' means an energy supply or end-use technology 
     that, over its lifecycle and compared to a similar technology 
     already in commercial use in developing countries, countries 
     in transition, and other partner countries--
       (A) emits substantially lower levels of pollutants or 
     greenhouse gases; and
       (B) may generate substantially smaller or less toxic 
     volumes of solid or liquid waste.
       (2) Interagency working group.--The term ``interagency 
     working group'' means the Interagency Working Group on Clean 
     Energy Technology Exports established under subsection (b).
       (b) Interagency Working Group.--
       (1) Establishment.--Not later than 90 days after the date 
     of enactment of this section, the Secretary of Energy, the 
     Secretary of Commerce, and the Administrator of the U.S. 
     Agency for International Development shall jointly establish 
     a Interagency Working Group on Clean Energy Technology 
     Exports. The interagency working group will focus on opening 
     and expanding energy markets and transferring clean energy 
     technology to the developing countries, countries in 
     transition, and other partner countries that are expected to 
     experience, over the next 20 years, the most significant 
     growth in energy production and associated greenhouse gas 
     emissions, including through technology transfer programs 
     under the Framework Convention on Climate Change, other 
     international agreements, and relevant Federal efforts.
       (2) Membership.--The interagency working group shall be 
     jointly chaired by representatives appointed by the agency 
     heads under paragraph (1) and shall also include 
     representatives from the Department of State, the Department 
     of Treasury, the Environmental Protection Agency, the Export-
     Import Bank, the Overseas Private Investment Corporation, the 
     Trade and Development Agency, and other federal agencies as 
     deemed appropriate by all three agency heads under paragraph 
     (1).
       (3) Duties.--The interagency working group shall--
       (A) analyze technology, policy, and market opportunities 
     for international development, demonstration, and deployment 
     of clean energy technology;
       (B) investigate issues associated with building capacity to 
     deploy clean energy technology in developing countries, 
     countries in transition, and other partner countries, 
     including--
       (i) energy-sector reform;
       (ii) creation of open, transparent, and competitive markets 
     for energy technologies;
       (iii) availability of trained personnel to deploy and 
     maintain the technology; and
       (iv) demonstration and cost-buydown mechanisms to promote 
     first adoption of the technology;
       (C) examine relevant trade, tax, international, and other 
     policy issues to assess what policies would help open markets 
     and improve U.S. clean energy technology exports in support 
     of the following areas:
       (i) enhancing energy innovation and cooperation, including 
     energy sector and market reform, capacity building, and 
     financing measures;
       (ii) improving energy end-use efficiency technologies, 
     including buildings and facilities, vehicle, industrial, and 
     co-generation technology initiatives; and
       (iii) promoting energy supply technologies, including 
     fossil, nuclear, and renewable technology initiatives;
       (D) establish an advisory committee involving the private 
     sector and other interested groups on the export and 
     deployment of clean energy technology;
       (E) monitor each agency's progress towards meeting goals in 
     the 5-year strategic plan submitted to Congress pursuant to 
     the Energy and Water Development Appropriations Act, 2001, 
     and the Energy and Water Development Appropriations Act, 
     2002;
       (F) make recommendations to heads of appropriate Federal 
     agencies on ways to streamline federal programs and policies 
     to improve each agency's role in the international 
     development, demonstration, and deployment of clean energy 
     technology;
       (G) make assessments and recommendations regarding the 
     distinct technological, market, regional, and stakeholder 
     challenges necessary to carry out the program; and
       (H) recommend conditions and criteria that will help ensure 
     that United States funds promote sound energy policies in 
     participating countries while simultaneously opening their 
     markets and exporting United States energy technology.
       (c) Federal Support for Clean Energy Technology Transfer.--
     Notwithstanding any other provision of law, each federal 
     agency or government corporation carrying out an assistance 
     program in support of the activities of United States persons 
     in the environment or energy sector of a developing country, 
     country in transition, or other partner country shall 
     support, to the maximum extent practicable, the transfer of 
     United States clean energy technology as part of that 
     program.
       (d) Annual Report.--Not later than April 1, 2002, and each 
     year thereafter, the Interagency Working Group shall submit a 
     report to Congress on its activities during the preceding 
     calendar year. The report shall include a description of the 
     technology, policy, and market opportunities for 
     international development, demonstration, and deployment of 
     clean energy technology investigated by the Interagency 
     Working Group in that year, as well as any policy 
     recommendations to improve the expansion of clean energy 
     markets and U.S. clean energy technology exports.
       (e) Report on Use of Funds.--Not later than October 1, 
     2002, and each year thereafter, the Secretary of State, in 
     consultation with other federal agencies, shall submit a 
     report to Congress indicating how United States funds 
     appropriated for clean energy technology exports and other 
     relevant federal programs are being directed in a manner that 
     promotes sound energy policy commitments in developing 
     countries, countries in transition, and other partner 
     countries, including efforts pursuant to multi-lateral 
     environmental agreements.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the departments, agencies, and entities 
     of the United States described in subsection (b) such sums as 
     may be necessary to support the transfer of clean energy 
     technology, consistent with the subsidy codes of the World 
     Trade Organization, as part of assistance programs carried 
     out by those departments, agencies, and entities in support 
     of activities of United States persons in the energy sector 
     of a developing country, country in transition, or other 
     partner country.

     SEC. 1322. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT 
                   PROGRAM.

       (a) In General.--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--
       ``(1) 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--

       ``(I) 10 percentage points or more, in the case of a unit 
     placed in service before January 1, 2010;

[[Page S1310]]

       ``(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.

       ``(B) 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;
       ``(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.
       ``(C) United states.--For purposes of this paragraph, 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 subsection, 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 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 percent 
     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 developing country (those 
     countries not listed in Annex I of the United Nations 
     Framework Convention on Climate Change) shall require at 
     least a 10 percent 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 shall contribute at least 50 percent 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 subsection, the Secretary shall submit to 
     the President a report on the results of the pilot projects.
       ``(F) Recommendation.--Not later than 60 days after 
     receiving the report under subparagraph (E), the President 
     shall submit to Congress a recommendation, based on the 
     results of the pilot projects as reported by the Secretary of 
     Energy, concerning whether the financial assistance program 
     under this section should be continued, expanded, reduced, or 
     eliminated.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary carry out this 
     section $100,000,000 for each of fiscal years 2003 through 
     2011, to remain available until expended.''.
           Subtitle D--Climate Change Science and Information

      PART I--AMENDMENTS TO THE GLOBAL CHANGE RESEARCH ACT OF 1990

     SEC. 1331. AMENDMENT OF GLOBAL CHANGE RESEARCH ACT OF 1990.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Global Change Research Act of 1990 (15 
     U.S.C. 2921 et seq.).

     SEC. 1332. CHANGES IN DEFINITIONS.

       Paragraph (1) of section 2 (15 U.S.C. 2921) is amended by 
     striking ``Earth and'' inserting ``Climate and''.

     SEC. 1333. CHANGE IN COMMITTEE NAME.

       Section 102 (15 U.S.C. 2932) is amended--
       (1) by striking ``EARTH AND'' in the section heading and 
     inserting ``CLIMATE AND''; and
       (2) by striking ``Earth and'' in subsection (a) and 
     inserting ``Climate and''.

     SEC. 1334. CHANGE IN NATIONAL GLOBAL CHANGE RESEARCH PLAN.

       Section 104 (15 U.S.C. 2934) is amended--
       (1) by adding at the end of subsection (c) the following:
       ``(6) Methods for integrating information to provide 
     predictive tools for planning and decision making by 
     governments, communities and the private sector.'';
       (2) by inserting ``local, State, and Federal'' before 
     ``policy makers'' in subsection (d)(3);
       (3) by striking ``and'' in subsection (d)(2);
       (4) by striking ``change.'' in subsection (d)(3) and 
     inserting ``change; and'';
       (5) by adding at the end of subsection (d) the following:
       ``(4) establish a common assessment and modeling framework 
     that may be used in both research and operations to predict 
     and assess the vulnerability of natural and managed 
     ecosystems and of human society in the context of other 
     environmental and social changes.''; and
       (6) by adding at the end the following:
       ``(g) Strategic Plan; Revised Implementation Plan.--The 
     Chairman of the Council, through the Committee, shall develop 
     a strategic plan for the United States Global Climate Change 
     Research Program for the 10-year period beginning in 2002 and 
     submit the plan to the Congress within 180 days after the 
     date of enactment of the Global Climate Change Act of 2002. 
     The Chairman, through the Committee, shall also submit a 
     revised implementation plan under subsection (a).''.

     SEC. 1335. INTEGRATED PROGRAM OFFICE.

       Section 105 (15 U.S.C. 2935) is amended--
       (1) by redesignating subsections (a), (b), and (c) as 
     subsections (b), (c), and (d), respectively; and
       (2) inserting before subsection (b), as redesignated, the 
     following:
       ``(a) Integrated Program Office.--
       ``(1) Establishment.--There is established in the Office of 
     Science and Technology Policy an integrated program office 
     for the global change research program.
       ``(2) Organization.--The integrated program office 
     established under paragraph (1) shall be headed by the 
     associate director with responsibility for climate change 
     science and technology and shall include a representative 
     from each Federal agency participating in the global change 
     research program.
       ``(3) Function.--The integrated program office shall--
       ``(A) manage, working in conjunction with the Committee, 
     interagency coordination and program integration of global 
     change research activities and budget requests;
       ``(B) ensure that the activities and programs of each 
     Federal agency or department participating in the program 
     address the goals and objectives identified in the strategic 
     research plan and interagency implementation plans;
       ``(C) ensure program and budget recommendations of the 
     Committee are communicated to the President and are 
     integrated into the climate change action strategy;
       ``(D) review, solicit, and identify, and allocate funds 
     for, partnership projects that address critical research 
     objectives or operational goals of the program, including 
     projects that would fill research gaps identified by the 
     program, and for which project resources are shared among 
     at least 2 agencies participating in the program; and
       ``(E) review and provide recommendations on, in conjunction 
     with the Committee, all annual appropriations requests from 
     Federal agencies or departments participating in the program.
       ``(4) Grant authority.--The Integrated Program Office may 
     authorize 1 or more of the departments or agencies 
     participating in the program to enter into contracts and make 
     grants, using funds appropriated for use by the Office of 
     Science and Technology Policy for the purpose of carrying out 
     the responsibilities of that Office.
       ``(5) Funding.--For fiscal year 2003, and each fiscal year 
     thereafter, not less than $13,000,000 shall be made available 
     to the Integrated Program Office from amounts appropriated to 
     or for the use of the Office of Science and Technology 
     Policy.'';
       (3) by striking ``Committee.'' in paragraph (2) of 
     subsection (c), as redesignated, and inserting ``Committee 
     and the Integrated Program Office.''; and
       (4) by inserting ``and the Integrated Program Office'' 
     after ``Committee'' in paragraph (1) of subsection (d), as 
     redesignated.

           PART II--NATIONAL CLIMATE SERVICES AND MONITORING

     SEC. 1341. AMENDMENT OF NATIONAL CLIMATE PROGRAM ACT.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the National Climate Program Act (15 
     U.S.C. 2901 et seq.).

[[Page S1311]]

     SEC. 1342. CHANGES IN FINDINGS.

       Section 2 (15 U.S.C. 2901) is amended--
       (1) by striking ``Weather and climate change affect'' in 
     paragraph (1) and inserting ``Weather, climate change, and 
     climate variability affect public safety, environmental 
     security, human health,'';
       (2) by striking ``climate'' in paragraph (2) and inserting 
     ``climate, including seasonal and decadal fluctuations,'';
       (3) by striking ``changes.'' in paragraph (5) and inserting 
     ``changes and providing free exchange of meteorological 
     data.''; and
       (4) by adding at the end the following:
       ``(7) The present rate of advance in research and 
     development is inadequate and new developments must be 
     incorporated rapidly into services for the benefit of the 
     public.
       ``(8) The United States lacks adequate infrastructure and 
     research to meet national climate monitoring and prediction 
     needs.''.

     SEC. 1343. TOOLS FOR REGIONAL PLANNING.

       Section 5(d) (15 U.S.C. 2904(d)) is amended--
       (1) by redesignating paragraphs (4) through (9) as 
     paragraphs (5) through (10), respectively;
       (2) by inserting after paragraph (3) the following:
       ``(4) methods for improving modeling and predictive 
     capabilities and developing assessment methods to guide 
     national, regional, and local planning and decision-making on 
     land use, water hazards, and related issues;
       (3) by inserting ``sharing,'' after ``collection,'' in 
     paragraph (5), as redesignated;
       (4) by striking ``experimental'' each place it appears in 
     paragraph (9), as redesignated;
       (5) by striking ``preliminary'' in paragraph (10), as 
     redesignated;
       (6) by striking ``this Act,'' the first place it appears in 
     paragraph (10), as redesignated, and inserting ``the Global 
     Climate Change Act of 2002,''; and
       (7) by striking ``this Act,'' the second place it appears 
     in paragraph (10), as redesignated, and inserting ``that 
     Act,''.

     SEC. 1344. AUTHORIZATION OF APPROPRIATIONS.

       Section 9 (15 U.S.C. 2908) is amended--
       (1) by striking ``1979,'' and inserting ``2002,'';
       (2) by striking ``1980,'' and inserting ``2003,'';
       (3) by striking ``1981,'' and inserting ``2004,''; and
       (4) by striking ``$25,500,000'' and inserting 
     ``$75,500,000''.

     SEC. 1345. NATIONAL CLIMATE SERVICE PLAN.

       The Act (15 U.S.C. 2901 et seq.) is amended by inserting 
     after section 5 the following:

     ``SEC. 6. NATIONAL CLIMATE SERVICE PLAN.

       ``Within one year after the date of enactment of the Global 
     Climate Change Act of 2002, the Secretary of Commerce shall 
     submit to the Senate Committee on Commerce, Science, and 
     Transportation and the House Science Committee a plan of 
     action for a National Climate Service under the National 
     Climate Program. The plan shall set forth recommendations and 
     funding estimates for--
       ``(1) a national center for operational climate monitoring 
     and predicting with the functional capacity to monitor and 
     adjust observing systems as necessary to reduce bias;
       ``(2) the design, deployment, and operation of an adequate 
     national climate observing system that builds upon existing 
     environmental monitoring systems and closes gaps in coverage 
     by existing systems;
       ``(3) the establishment of a national coordinated modeling 
     strategy, including a national climate modeling center to 
     provide a dedicated capability for climate modeling and a 
     regular schedule of projections on a long and short term time 
     schedule and at a range of spatial scales;
       ``(4) improvements in modeling and assessment capabilities 
     needed to integrate information to predict regional and local 
     climate changes and impacts;
       ``(5) in coordination with the private sector, improving 
     the capacity to assess the impacts of predicted and projected 
     climate changes and variations;
       ``(6) a program for long term stewardship, quality control, 
     development of relevant climate products, and efficient 
     access to all relevant climate data, products, and critical 
     model simulations; and
       ``(7) mechanisms to coordinate among Federal agencies, 
     State, and local government entities and the academic 
     community to ensure timely and full sharing and dissemination 
     of climate information and services, both domestically and 
     internationally.''.

     SEC. 1346. INTERNATIONAL PACIFIC RESEARCH AND COOPERATION.

       The Secretary of Commerce, in cooperation with the 
     Administrator of the National Aeronautics and Space 
     Administration, shall conduct international research in the 
     Pacific region that will increase understanding of the nature 
     and predictability of climate variability in the Asia-Pacific 
     sector, including regional aspects of global environmental 
     change. Such research activities shall be conducted in 
     cooperation with other nations of the region. There are 
     authorized to be appropriated for purposes of this section 
     $1,500,000 to the National Oceanic and Atmospheric 
     Administration, $1,500,000 to the National Aeronautics and 
     Space Administration, and $500,000 for the Pacific ENSO 
     Applications Center.

     SEC. 1347. REPORTING ON TRENDS.

       (a) Atmospheric Monitoring and Verification Program.--The 
     Secretary of Commerce, in coordination with relevant Federal 
     agencies, shall, as part of the National Climate Service, 
     establish an atmospheric monitoring and verification program 
     utilizing aircraft, satellite, ground sensors, and modeling 
     capabilities to monitor, measure, and verify atmospheric 
     greenhouse gas levels, dates, and emissions. Where feasible, 
     the program shall measure emissions from identified sources 
     participating in the reporting system for verification 
     purposes. The program shall use measurements and standards 
     that are consistent with those utilized in the greenhouse gas 
     measurement and reporting system established under subsection 
     (a) and the registry established under section 1102.
       (b) Annual Reporting.--The Secretary of Commerce shall 
     issue an annual report that identifies greenhouse emissions 
     and trends on a local, regional, and national level. The 
     report shall also identify emissions or reductions 
     attributable to individual or multiple sources covered by the 
     greenhouse gas measurement and reporting system established 
     under section 1102.

              PART III--OCEAN AND COASTAL OBSERVING SYSTEM

     SEC. 1351. OCEAN AND COASTAL OBSERVING SYSTEM.

       (a) Establishment.--The President, through the National 
     Ocean Research Leadership Council, established by section 
     7902(a) of title 10, United States Code, shall establish and 
     maintain an integrated ocean and coastal observing system 
     that provides for long-term, continuous, and real-time 
     observations of the oceans and coasts for the purposes of--
       (1) understanding, assessing and responding to human-
     induced and natural processes of global change;
       (2) improving weather forecasts and public warnings;
       (3) strengthening national security and military 
     preparedness;
       (4) enhancing the safety and efficiency of marine 
     operations;
       (5) supporting efforts to restore the health of and manage 
     coastal and marine ecosystems and living resources;
       (6) monitoring and evaluating the effectiveness of ocean 
     and coastal environmental policies;
       (7) reducing and mitigating ocean and coastal pollution; 
     and
       (8) providing information that contributes to public 
     awareness of the state and importance of the oceans.
       (b) Council Functions.--In addition to its responsibilities 
     under section 7902(a) of such title, the Council shall be 
     responsible for planning and coordinating the observing 
     system and in carrying out this responsibility shall--
       (1) develop and submit to the Congress, within 6 months 
     after the date of enactment of this Act, a plan for 
     implementing a national ocean and coastal observing system 
     that--
       (A) uses an end-to-end engineering and development approach 
     to develop a system design and schedule for operational 
     implementation;
       (B) determines how current and planned observing activities 
     can be integrated in a cost-effective manner;
       (C) provides for regional and concept demonstration 
     projects;
       (D) describes the role and estimated budget of each Federal 
     agency in implementing the plan;
       (E) contributes, to the extent practicable, to the National 
     Global Change Research Plan under section 104 of the Global 
     Change Research Act of 1990 (15 U.S.C. 2934); and
       (F) makes recommendations for coordination of ocean 
     observing activities of the United States with those of other 
     nations and international organizations;
       (2) serve as the mechanism for coordinating Federal ocean 
     observing requirements and activities;
       (3) work with academic, State, industry and other actual 
     and potential users of the observing system to make effective 
     use of existing capabilities and incorporate new 
     technologies;
       (4) approve standards and protocols for the administration 
     of the system, including--
       (A) a common set of measurements to be collected and 
     distributed routinely and by uniform methods;
       (B) standards for quality control and assessment of data;
       (C) design, testing and employment of forecast models for 
     ocean conditions;
       (D) data management, including data transfer protocols and 
     archiving; and
       (E) designation of coastal ocean observing regions; and
       (5) in consultation with the Secretary of State, provide 
     representation at international meetings on ocean observing 
     programs and coordinate relevant Federal activities with 
     those of other nations.
       (c) System Elements.--The integrated ocean and coastal 
     observing system shall include the following elements:
       (1) A nationally coordinated network of regional coastal 
     ocean observing systems that measure and disseminate a common 
     set of ocean observations and related products in a uniform 
     manner and according to sound scientific practice, but that 
     are adapted to local and regional needs.
       (2) Ocean sensors for climate observations, including the 
     Arctic Ocean and sub-polar seas.
       (3) Coastal, relocatable, and cabled sea floor 
     observatories.
       (4) Broad bandwidth communications that are capable of 
     transmitting high volumes of

[[Page S1312]]

     data from open ocean locations at low cost and in real time.
       (5) Ocean data management and assimilation systems that 
     ensure full use of new sources of data from space-borne and 
     in situ sensors.
       (6) Focused research programs.
       (7) Technology development program to develop new observing 
     technologies and techniques, including data management and 
     dissemination.
       (8) Public outreach and education.

     SEC. 1352. AUTHORIZATION OF APPROPRIATIONS.

       For development and implementation of an integrated ocean 
     and coastal observation system under this title, including 
     financial assistance to regional coastal ocean observing 
     systems, there are authorized to be appropriated $235,000,000 
     in fiscal year 2003, $315,000,000 in fiscal year 2004, 
     $390,000,000 in fiscal year 2005, and $445,000,000 in fiscal 
     year 2006.

                 Subtitle E--Climate Change Technology

     SEC. 1361. NIST GREENHOUSE GAS FUNCTIONS.

       Section 2(c) of the National Institute of Standards and 
     Technology Act (15 U.S.C. 272(c)) is amended--
       (1) striking ``and'' after the semicolon in paragraph (21);
       (2) by redesignating paragraph (22) as paragraph (23); and
       (3) by inserting after paragraph (21) the following:
       ``(22) perform research to develop enhanced measurements, 
     calibrations, standards, and technologies which will enable 
     the reduced production in the United States of greenhouse 
     gases associated with global warming, including carbon 
     dioxide, methane, nitrous oxide, ozone, perfluorocarbons, 
     hydrofluorocarbons, and sulphur hexafluoride; and''.

     SEC. 1362. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.

       (a) In General.--The Secretary of Commerce shall initiate a 
     program to develop, with technical assistance from 
     appropriate Federal agencies, innovative standards and 
     measurement technologies (including technologies to measure 
     carbon changes due to changes in land use cover) to 
     calculate--
       (1) greenhouse gas emissions and reductions from 
     agriculture, forestry, and other land use practices;
       (2) non-carbon dioxide greenhouse gas emissions from 
     transportation;
       (3) greenhouse gas emissions from facilities or sources 
     using remote sensing technology; and
       (4) any other greenhouse gas emission or reductions for 
     which no accurate or reliable measurement technology exists.

     SEC. 1363. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.

       The National Institute of Standards and Technology Act (15 
     U.S.C. 271 et seq.) is amended--
       (1) by redesignating sections 17 through 32 as sections 18 
     through 33, respectively; and
       (2) by inserting after section 16 the following:

     ``SEC. 17. CLIMATE CHANGE STANDARDS AND PROCESSES.

       ``(a) In General.--The Director shall establish within the 
     Institute a program to perform and support research on global 
     climate change standards and processes, with the goal of 
     providing scientific and technical knowledge applicable to 
     the reduction of greenhouse gases (as defined in section 4 of 
     the Global Climate Change Act of 2002).
       ``(b) Research Program.--
       ``(1) In general.--The Director is authorized to conduct, 
     directly or through contracts or grants, a global climate 
     change standards and processes research program.
       ``(2) Research projects.--The specific contents and 
     priorities of the research program shall be determined in 
     consultation with appropriate Federal agencies, including the 
     Environmental Protection Agency, the National Oceanic and 
     Atmospheric Administration, and the National Aeronautics and 
     Space Administration. The program generally shall include 
     basic and applied research--
       ``(A) to develop and provide the enhanced measurements, 
     calibrations, data, models, and reference material standards 
     which will enable the monitoring of greenhouse gases;
       ``(B) to assist in establishing of a baseline reference 
     point for future trading in greenhouse gases and the 
     measurement of progress in emissions reduction;
       ``(C) that will be exchanged internationally as scientific 
     or technical information which has the stated purpose of 
     developing mutually recognized measurements, standards, and 
     procedures for reducing greenhouse gases; and
       ``(D) to assist in developing improved industrial processes 
     designed to reduce or eliminate greenhouse gases.
       ``(c) National Measurement Laboratories.--
       ``(1) In general.--In carrying out this section, the 
     Director shall utilize the collective skills of the National 
     Measurement Laboratories of the National Institute of 
     Standards and Technology to improve the accuracy of 
     measurements that will permit better understanding and 
     control of these industrial chemical processes and result in 
     the reduction or elimination of greenhouse gases.
       ``(2) Material, process, and building research.--The 
     National Measurement Laboratories shall conduct research 
     under this subsection that includes--
       ``(A) developing material and manufacturing processes which 
     are designed for energy efficiency and reduced greenhouse gas 
     emissions into the environment;
       ``(B) developing environmentally-friendly, `green' chemical 
     processes to be used by industry; and
       ``(C) enhancing building performance with a focus in 
     developing standards or tools which will help incorporate low 
     or no-emission technologies into building designs.
       ``(3) Standards and tools.--The National Measurement 
     Laboratories shall develop standards and tools under this 
     subsection that include software to assist designers in 
     selecting alternate building materials, performance data on 
     materials, artificial intelligence-aided design procedures 
     for building subsystems and `smart buildings', and improved 
     test methods and rating procedures for evaluating the energy 
     performance of residential and commercial appliances and 
     products.
       ``(d) National Voluntary Laboratory Accreditation 
     Program.--The Director shall utilize the National Voluntary 
     Laboratory Accreditation Program under this section to 
     establish a program to include specific calibration or test 
     standards and related methods and protocols assembled to 
     satisfy the unique needs for accreditation in measuring the 
     production of greenhouse gases. In carrying out this 
     subsection the Director may cooperate with other departments 
     and agencies of the Federal Government, State and local 
     governments, and private organizations.''.

     SEC. 1364. TECHNOLOGY DEVELOPMENT AND DIFFUSION.

       (a) Advanced Technology Program Competitions.--The Director 
     of the National Institute of Standards and Technology, 
     through the Advanced Technology Program, may hold a portion 
     of the Institute's competitions in thematic areas, selected 
     after consultation with industry, academics, and other 
     Federal Agencies, designed to develop and commercialize 
     enabling technologies to address global climate change by 
     significantly reducing greenhouse gas emissions and 
     concentrations in the atmosphere.
       (b) Manufacturing Extension Partnership Program for 
     ``Green'' Manufacturing.--The Director of the National 
     Institute of Standards and Technology, through the 
     Manufacturing Extension Partnership Program, may develop a 
     program to support the implementation of new ``green'' 
     manufacturing technologies and techniques by the more than 
     380,000 small manufacturers.

     SEC. 1365. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Director to 
     carry out functions pursuant to sections 1345, 1351, and 1361 
     through 1363, $10,000,000 for fiscal years 2002 through 2006.

         Subtitle F--Climate Adaptation and Hazards Prevention

                   PART I--ASSESSMENT AND ADAPTATION

     SEC. 1371. REGIONAL CLIMATE ASSESSMENT AND ADAPTATION 
                   PROGRAM.

       (a) In General.--The President shall establish within the 
     Department of Commerce a National Climate Change 
     Vulnerability and Adaptation Program for regional impacts 
     related to increasing concentrations of greenhouse gases in 
     the atmosphere and climate variability.
       (b) Coordination.--In designing such program the Secretary 
     shall consult with the Federal Emergency Management Agency, 
     the Environmental Protection Agency, the Army Corps of 
     Engineers, the Department of Transportation, and other 
     appropriate Federal, State, and local government entities.
       (c) Vulnerability Assessments.--The program shall--
       (1) evaluate, based on predictions developed under this Act 
     and the National Climate Program Act (15 U.S.C. 2901 et 
     seq.), regional vulnerability to phenomena associated with 
     climate change and climate variability, including--
       (A) increases in severe weather events;
       (B) sea level rise and shifts in the hydrological cycle;
       (C) natural hazards, including tsunami, drought, flood and 
     fire; and
       (D) alteration of ecological communities, including at the 
     ecosystem or watershed levels; and
       (2) build upon predictions and other information developed 
     in the National Assessments prepared under the Global Change 
     Research Act of 1990 (15 U.S.C. 2921 et seq.).
       (d) Preparedness Recommendations.--The program shall submit 
     a report to Congress within 2 years after the date of 
     enactment of this Act that identifies and recommends 
     implementation and funding strategies for short and long-term 
     actions that may be taken at the national, regional, State, 
     and local level--
       (1) to minimize threats to human life and property,
       (2) to improve resilience to hazards,
       (3) to minimize economic impacts; and
       (4) to reduce threats to critical biological and ecological 
     processes.
       (e) Information and Technology.--The Secretary shall make 
     available appropriate information and other technologies and 
     products that will assist national, regional, State, and 
     local efforts to reduce loss of life and property, and 
     coordinate dissemination of such technologies and products.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce $4,500,000 to 
     implement the requirements of this section.

     SEC. 1372. COASTAL VULNERABILITY AND ADAPTATION.

       (a) Coastal Vulnerability.--Within 2 years after the date 
     of enactment of this Act, the Secretary shall, in 
     consultation with the appropriate Federal, State, and

[[Page S1313]]

     local governmental entities, conduct regional assessments of 
     the vulnerability of coastal areas to hazards associated with 
     climate change, climate variability, sea level rise, and 
     fluctuation of Great Lakes water levels. The Secretary may 
     also establish, as warranted, longer term regional assessment 
     programs. The Secretary may also consult with the governments 
     of Canada and Mexico as appropriate in developing such 
     regional assessments. In preparing the regional assessments, 
     the Secretary shall collect and compile current information 
     on climate change, sea level rise, natural hazards, and 
     coastal erosion and mapping, and specifically address impacts 
     on Arctic regions and the Central, Western, and South Pacific 
     regions. The regional assessments shall include an evaluation 
     of--
       (1) social impacts associated with threats to and potential 
     losses of housing, communities, and infrastructure;
       (2) physical impacts such as coastal erosion, flooding and 
     loss of estuarine habitat, saltwater intrusion of aquifers 
     and saltwater encroachment, and species migration; and
       (3) economic impact on local, State, and regional 
     economies, including the impact on abundance or distribution 
     of economically important living marine resources.
       (b) Coastal Adaptation Plan.--The Secretary shall, within 3 
     years after the date of enactment of this Act, submit to the 
     Congress a national coastal adaptation plan, composed of 
     individual regional adaptation plans that recommend targets 
     and strategies to address coastal impacts associated with 
     climate change, sea level rise, or climate variability. The 
     plan shall be developed with the participation of other 
     Federal, State, and local government agencies that will be 
     critical in the implementation of the plan at the State and 
     local levels. The regional plans that will make up the 
     national coastal adaptation plan shall be based on the 
     information contained in the regional assessments and shall 
     identify special needs associated with Arctic areas and the 
     Central, Western, and South Pacific regions. The Plan shall 
     recommend both short and long-term adaptation strategies and 
     shall include recommendations regarding--
       (1) Federal flood insurance program modifications;
       (2) areas that have been identified as high risk through 
     mapping and assessment;
       (3) mitigation incentives such as rolling easements, 
     strategic retreat, State or Federal acquisition in fee simple 
     or other interest in land, construction standards, and 
     zoning;
       (4) land and property owner education;
       (5) economic planning for small communities dependent upon 
     affected coastal resources, including fisheries; and
       (6) funding requirements and mechanisms.
       (c) Technical Planning Assistance.--The Secretary, through 
     the National Ocean Service, shall establish a coordinated 
     program to provide technical planning assistance and products 
     to coastal States and local governments as they develop and 
     implement adaptation or mitigation strategies and plans. 
     Products, information, tools and technical expertise 
     generated from the development of the regional assessments 
     and the regional adaptation plans will be made available to 
     coastal States for the purposes of developing their own State 
     and local plans.
       (d) Coastal Adaptation Grants.--The Secretary shall provide 
     grants of financial assistance to coastal States with 
     Federally approved coastal zone management programs to 
     develop and begin implementing coastal adaptation programs if 
     the State provides a Federal-to-State match of 4 to 1 in the 
     first fiscal year, 2.3 to 1 in the second fiscal year, 2 to 1 
     in the third fiscal year, and 1 to 1 thereafter. Distribution 
     of these funds to coastal states shall be based upon the 
     formula established under section 306(c) of the Coastal Zone 
     Management Act of 1972 (16 U.S.C. 1455(c)), adjusted in 
     consultation with the States as necessary to provide 
     assistance to particularly vulnerable coastlines.
       (e) Coastal Response Pilot Program.--
       (1) In general.--The Secretary shall establish a 4-year 
     pilot program to provide financial assistance to coastal 
     communities most adversely affected by the impact of climate 
     change or climate variability that are located in States with 
     Federally approved coastal zone management programs.
       (2) Eligible projects.--A project is eligible for financial 
     assistance under the pilot program if it--
       (A) will restore or strengthen coastal resources, 
     facilities, or infrastructure that have been damaged by such 
     an impact, as determined by the Secretary;
       (B) meets the requirements of the Coastal Zone Management 
     Act (16 U.S.C. 1451 et seq.) and is consistent with the 
     coastal zone management plan of the State in which it is 
     located; and
       (C) will not cost more than $100,000.
       (3) Funding share.--The Federal funding share of any 
     project under this subsection may not exceed 75 percent of 
     the total cost of the project. In the administration of this 
     paragraph--
       (A) the Secretary may take into account in-kind 
     contributions and other non-cash support of any project to 
     determine the Federal funding share for that project; and
       (B) the Secretary may waive the requirements of this 
     paragraph for a project in a community if--
       (i) the Secretary determines that the project is important; 
     and
       (ii) the economy and available resources of the community 
     in which the project is to be conducted are insufficient to 
     meet the non-Federal share of the projects's costs.
       (f) Definitions.--Any term used in this section that is 
     defined in section 304 of the Coastal Zone Management Act of 
     1972 (16 U.S.C. 1453) has the meaning given it by that 
     section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated $3,000,000 annually for regional 
     assessments under subsection (a), and $3,000,000 annually for 
     coastal adaptation grants under subsection (d).

            PART II--FORECASTING AND PLANNING PILOT PROGRAMS

     SEC. 1381. REMOTE SENSING PILOT PROJECTS.

       (a) In General.--The Administrator of the National 
     Aeronautics and Space Administration shall establish, through 
     the National Oceanic and Atmospheric Administration's Coastal 
     Services Center, a program of grants for competitively 
     awarded pilot projects to explore the integrated use of 
     sources of remote sensing and other geospatial information to 
     address State, local, regional, and tribal agency needs to 
     forecast a plan for adaptation to coastal zone and land use 
     changes that may result as a consequence of global climate 
     change or climate variability.
       (b) Preferred Projects.--In awarding grants under this 
     section, the Center shall give preference to projects that--
       (1) focus on areas that are most sensitive to the 
     consequences of global climate change or climate variability;
       (2) make use of existing public or commercial data sets;
       (3) integrate multiple sources of geospatial information, 
     such as geographic information system data, satellite-
     provided positioning data, and remotely sensed data, in 
     innovative ways;
       (4) offer diverse, innovative approaches that may serve as 
     models for establishing a future coordinated framework for 
     planning strategies for adaptation to coastal zone and land 
     use changes related to global climate change or climate 
     variability;
       (5) include funds or in-kind contributions from non-Federal 
     sources;
       (6) involve the participation of commercial entities that 
     process raw or lightly processed data, often merging that 
     data with other geospatial information, to create data 
     products that have significant value added to the original 
     data; and
       (7) taken together demonstrate as diverse a set of public 
     sector applications as possible.
       (c) Opportunities.--In carrying out this section, the 
     Center shall seek opportunities to assist--
       (1) in the development of commercial applications 
     potentially available from the remote sensing industry; and
       (2) State, local, regional, and tribal agencies in applying 
     remote sensing and other geospatial information technologies 
     for management and adaptation to coastal and land use 
     consequences of global climate change or climate variability.
       (d) Duration.--Assistance for a pilot project under 
     subsection (a) shall be provided for a period of not more 
     than 3 years.
       (e) Responsibilities of Grantees.--Within 180 days after 
     completion of a grant project, each recipient of a grant 
     under subsection (a) shall transmit a report to the Center on 
     the results of the pilot project and conduct at least one 
     workshop for potential users to disseminate the lessons 
     learned from the pilot project as widely as feasible.
       (f) Regulations.--The Center shall issue regulations 
     establishing application, selection, and implementation 
     procedures for pilot projects, and guidelines for reports and 
     workshops required by this section.

     SEC. 1382. DATABASE ESTABLISHMENT.

       The Center shall establish and maintain an electronic, 
     Internet-accessible database of the results of each pilot 
     project completed under section 1381.

     SEC. 1383. DEFINITIONS.

       In this subtitle:
       (1) Center.--The term ``Center'' means the Coastal Services 
     Center of the National Oceanic and Atmospheric 
     Administration.
       (2) Geospatial information.--The term ``geospatial 
     information'' means knowledge of the nature and distribution 
     of physical and cultural features on the landscape based on 
     analysis of data from airborne or spaceborne platforms or 
     other types and sources of data.
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     that term in section 101(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1001(a)).

     SEC. 1384. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the 
     Administrator to carry out the provisions of this subtitle--
       (1) $17,500,000 for fiscal year 2003;
       (2) $20,000,000 for fiscal year 2004;
       (3) $22,500,000 for fiscal year 2005; and
       (4) $25,000,000 for fiscal year 2006.
      TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

     SEC. 1401. DEFINITIONS.

       In this title:
       (1) Applicability of definitions.--The definitions in 
     section 1203 shall apply.
       (2) Single-purpose research facility.--The term ``single-
     purpose research facility'' means any of the following 
     primarily single purpose entities owned by the Department of 
     Energy--
       (A) Ames Laboratory;
       (B) East Tennessee Technology Park;
       (C) Environmental Measurement Laboratory;

[[Page S1314]]

       (D) Fernald Environmental Management Project;
       (E) Fermi National Accelerator Laboratory;
       (F) Kansas City Plant;
       (G) Nevada Test Site;
       (H) New Brunswick Laboratory;
       (I) Pantex Weapons Facility;
       (J) Princeton Plasma Physics Laboratory;
       (K) Savannah River Technology Center;
       (L) Stanford Linear Accelerator Center;
       (M) Thomas Jefferson National Accelerator Facility;
       (N) Y-12 facility at Oak Ridge National Laboratory;
       (O) Waste Isolation Pilot Plant; or
       (P) other similar organization of the Department designated 
     by the Secretary that engages in technology transfer, 
     partnering, or licensing activities.

     SEC. 1402. AVAILABILITY OF FUNDS.

       Funds authorized to be appropriated to the Department of 
     Energy under title XII, title XIII, and title XV shall remain 
     available until expended.

     SEC. 1403. COST SHARING.

       (a) Research and Development.--For research and development 
     projects funded from appropriations authorized under 
     subtitles A through D of title XII, the Secretary shall 
     require a commitment from non-federal sources of at least 20 
     percent of the cost of the project. The Secretary may reduce 
     or eliminate the non-Federal requirement under this 
     subsection if the Secretary determines that the research and 
     development is of a basic or fundamental nature.
       (b) Demonstration and Deployment.--For demonstration and 
     technology deployment activities funded from appropriations 
     authorized under subtitles A through D of title XII, the 
     Secretary shall require a commitment from non-federal sources 
     of at least 50 percent of the costs of the project directly 
     and specifically related to any demonstration or technology 
     deployment activity. The Secretary may reduce or eliminate 
     the non-federal requirement under this subsection if the 
     Secretary determines that the reduction is necessary and 
     appropriate considering the technological risks involved in 
     the project and is necessary to meet one or more goals of 
     this title.
       (c) Calculation of Amount.--In calculating the amount of 
     the non-Federal commitment under subsection (a) or (b), the 
     Secretary shall include cash, personnel, services, equipment, 
     and other resources.

     SEC. 1404. MERIT REVIEW OF PROPOSALS.

       Awards of funds authorized under title XII, subtitle A of 
     title XIII, and title XV shall be made only after an 
     independent review of the scientific and technical merit of 
     the proposals for such awards has been made by the Department 
     of Energy.

     SEC. 1405. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL 
                   PROGRAMS.

       (a) National Energy Research and Development Advisory 
     Boards.--(1) The Secretary shall establish an advisory board 
     to oversee Department research and development programs in 
     each of the following areas--
       (A) energy efficiency;
       (B) renewable energy;
       (C) fossil energy;
       (D) nuclear energy; and
       (E) climate change technology, with emphasis on 
     integration, collaboration, and other special features of the 
     cross-cutting technologies supported by the Office of Climate 
     Change Technology.
       (2) The Secretary may designate an existing advisory board 
     within the Department to fulfill the responsibilities of an 
     advisory board under this subsection, or may enter into 
     appropriate arrangements with the National Academy of 
     Sciences to establish such an advisory board.
       (b) Utilization of Existing Committees.--The Secretary of 
     Energy shall continue to use the scientific program advisory 
     committees chartered under the Federal Advisory Committee Act 
     by the Office of Science to oversee research and development 
     programs under that Office.
       (c) Membership.--Each advisory board under this section 
     shall consist of experts drawn from industry, academia, 
     federal laboratories, research institutions, or state, local, 
     or tribal governments, as appropriate.
       (d) Meetings and Purposes.--Each advisory board under this 
     section shall meet at least semi-annually to review and 
     advise on the progress made by the respective research, 
     development, demonstration, and technology deployment 
     program. The advisory board shall also review the adequacy 
     and relevance of the goals established for each program by 
     Congress and the President, and may otherwise advise on 
     promising future directions in research and development that 
     should be considered by each program.

     SEC. 1406. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN 
                   SCIENCE AND TECHNOLOGY PROGRAMS.

       (a) Effective Top-Level Coordination of Research and 
     Development Programs.--Section 202(b) of the Department of 
     Energy Organization Act (42 U.S.C. 7132(b)) is amended to 
     read as follows:
       ``(b)(1) There shall be in the Department an Under 
     Secretary for Energy and Science, who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate. The Under Secretary shall be compensated at the rate 
     provided for at level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       ``(2) The Under Secretary for Energy and Science shall be 
     appointed from among persons who--
       ``(A) have extensive background in scientific or 
     engineering fields; and
       ``(B) are well qualified to manage the civilian research 
     and development programs of the Department of Energy.
       ``(3) The Under Secretary for Energy and Science shall--
       ``(A) serve as the Science and Technology Advisor to the 
     Secretary;
       ``(B) monitor the Department's research and development 
     programs in order to advise the Secretary with respect to any 
     undesirable duplication or gaps in such programs;
       ``(C) advise the Secretary with respect to the well-being 
     and management of the multipurpose laboratories under the 
     jurisdiction of the Department;
       ``(D) advise the Secretary with respect to education and 
     training activities required for effective short- and long-
     term basic and applied research activities of the Department;
       ``(E) advise the Secretary with respect to grants and other 
     forms of financial assistance required for effective short- 
     and long-term basic and applied research activities of the 
     Department; and
       ``(F) exercise authority and responsibility over Assistant 
     Secretaries carrying out energy research and development and 
     energy technology functions under sections 203 and 209, as 
     well as other elements of the Department assigned by the 
     Secretary.
       (b) Reconfiguration of Position of Director of the Office 
     of Science.--Section 209 of the Department of Energy 
     Organization Act (41 U.S.C. 7139) is amended to read as 
     follows--
       ``(a) There shall be within the Department an Office of 
     Science, to be headed by an Assistant Secretary of Science, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, and who shall be 
     compensated at the rate provided for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.
       ``(b) The Assistant Secretary of Science shall be in 
     addition to the Assistant Secretaries provided for under 
     section 203 of this Act.
       ``(c) It shall be the duty and responsibility of the 
     Assistant Secretary of Science to carry out the fundamental 
     science and engineering research functions of the Department, 
     including the responsibility for policy and management of 
     such research, as well as other functions vested in the 
     Secretary which he may assign to the Assistant Secretary.''.
       (c) Additional Assistant Secretary Position To Enable 
     Improved Management of Nuclear Energy Issues.--
       (1) Section 203(a) of the Department of Energy Organization 
     Act (42 U.S.C. 7133(a)) is amended by striking ``There shall 
     be in the Department six Assistant Secretaries'' and 
     inserting ``Except as provided in section 209, there shall be 
     in the Department seven Assistant Secretaries''.
       (2) It is the Sense of the Senate that the leadership for 
     departmental missions in nuclear energy should be at the 
     Assistant Secretary level.
       (d) Technical and Conforming Amendments.--
       (1) Section 202 of the Department of Energy Organization 
     Act (42 U.S.C. 7132) is further amended by adding the 
     following at the end:
       ``(d) There shall be in the Department an Under Secretary, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, and who shall perform such 
     functions and duties as the Secretary shall prescribe, 
     consistent with this section. The Under Secretary shall be 
     compensated at the rate provided for level III of the 
     Executive Schedule under section 5314 of title 5, United 
     States Code.
       ``(e) There shall be in the Department a General Counsel, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate. The General Counsel shall 
     be compensated at the rate provided for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.''.
       (2) Section 5314 of title 5, United States Code, is amended 
     by striking ``Under Secretaries of Energy (2)'' and inserting 
     ``Under Secretaries of Energy (3)''.
       (3) Section 5315 of title 5, United States Code, is amended 
     by--
       (A) striking ``Director, Office of Science, Department of 
     Energy.''; and
       (B) striking ``Assistant Secretaries of Energy (6)'' and 
     inserting ``Assistant Secretaries of Energy (8)''.
       (4) The table of contents for the Department of Energy 
     Organization Act (42 U.S.C. 7101 note) is amended--
       (A) by striking ``Section 209'' and inserting ``Sec. 209'';
       (B) by striking ``213.'' and inserting ``Sec. 213.'';
       (C) by striking ``214.'' and inserting ``Sec. 214.'';
       (D) by striking ``215.'' and inserting ``Sec. 215.''; and
       (E) by striking ``216.'' and inserting ``Sec. 216.''.

       SEC. 1407. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER 
                   ACTIVITIES.

       (a) Technology Transfer Coordinator.--The Secretary shall 
     appoint a Technology Transfer Coordinator to perform 
     oversight of and policy development for technology transfer 
     activities at the Department. The Technology Transfer 
     Coordinator shall coordinate the activities of the Technology 
     Partnerships Working Group, and shall oversee the expenditure 
     of funds allocated to the Technology Partnership Working 
     Group.

[[Page S1315]]

       (b) Technology Partnership Working Group.--The Secretary 
     shall establish a Technology Partnership Working Group, which 
     shall consist of representatives of the National Laboratories 
     and single-purpose research facilities, to--
       (1) coordinate technology transfer activities occurring at 
     National Laboratories and single-purpose research facilities;
       (2) exchange information about technology transfer 
     practices; and
       (3) develop and disseminate to the public and prospective 
     technology partners information about opportunities and 
     procedures for technology transfer with the Department.

     SEC 1408. TECHNOLOGY INFRASTRUCTURE PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     Technology Infrastructure Program in accordance with this 
     section.
       (b) Purpose.--The purpose of the Technology Infrastructure 
     Program shall be to improve the ability of National 
     Laboratories or single-purpose research facilities to support 
     departmental missions by--
       (1) stimulating the development of technology clusters that 
     can support departmental missions at the National 
     Laboratories or single-purpose research facilities;
       (2) improving the ability of National Laboratories or 
     single-purpose research facilities to leverage and benefit 
     from commercial research, technology, products, processes, 
     and services; and
       (3) encouraging the exchange of scientific and 
     technological expertise between National Laboratories or 
     single-purpose research facilities and--
       (A) institutions of higher education,
       (B) technology-related business concerns,
       (C) nonprofit institutions, and
       (D) agencies of State, tribal, or local governments, that 
     can support departmental missions at the National 
     Laboratories and single-purpose research facilities.
       (c) Projects.--The Secretary shall authorize the Director 
     of each National Laboratory or facility to implement the 
     Technology Infrastructure Program at such National Laboratory 
     or single-purpose research facility through projects that 
     meet the requirements of subsections (d) and (e).
       (d) Program Requirements.--Each project funded under this 
     section shall meet the following requirements:
       (1) Minimum participants.--Each project shall at a minimum 
     include--
       (A) a National Laboratory or single-purpose research 
     facility; and
       (B) one of the following entities--
       (i) a business,
       (ii) an institution of higher education,
       (iii) a nonprofit institution, or
       (iv) an agency of a State, local, or tribal government.
       (2) Cost sharing.--
       (A) Minimum amount.--Not less than 50 percent of the costs 
     of each project funded under this section shall be provided 
     from non-Federal sources.
       (B) Qualified funding and resources.--
       (i) The calculation of costs paid by the non-Federal 
     sources to a project shall include cash, personnel, services, 
     equipment, and other resources expended on the project.
       (ii) Independent research and development expenses of 
     government contractors that qualify for reimbursement under 
     section 31-205-18(e) of the Federal Acquisition Regulations 
     issued pursuant to section 25(c)(1) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 421(c)(1)) may be credited 
     towards costs paid by non-Federal sources to a project, if 
     the expenses meet the other requirements of this section.
       (iii) No funds or other resources expended either before 
     the start of a project under this section or outside the 
     project's scope of work shall be credited toward the costs 
     paid by the non-Federal sources to the project.
       (3) Competitive selection.--All projects in which a party 
     other than the Department, a National Laboratory, or a 
     single-purpose research facility receives funding under this 
     section shall, to the extent practicable, be competitively 
     selected by the National Laboratory or facility using 
     procedures determined to be appropriate by the Secretary.
       (4) Accounting standards.--Any participant that receives 
     funds under this section, other than a National Laboratory or 
     single-purpose research facility, may use generally accepted 
     accounting principles for maintaining accounts, books, and 
     records relating to the project.
       (5) Limitations.--No Federal funds shall be made available 
     under this section for--
       (A) construction; or
       (B) any project for more than five years.
       (e) Selection Criteria.--
       (1) Threshold funding criteria.--The Secretary shall 
     allocate funds under this section only if the Director of the 
     National Laboratory or single-purpose research facility 
     managing the project determines that the project is likely to 
     improve the ability of the National Laboratory or single-
     purpose research facility to achieve technical success in 
     meeting departmental missions.
       (2) Additional criteria.--The Secretary shall require the 
     Director of the National Laboratory or single-purpose 
     research facility managing a project under this section to 
     consider the following criteria in selecting a project to 
     receive Federal funds--
       (A) the potential of the project to succeed, based on its 
     technical merit, team members, management approach, 
     resources, and project plan;
       (B) the potential of the project to promote the development 
     of a commercially sustainable technology cluster, which will 
     derive most of the demand for its products or services from 
     the private sector, and which will support departmental 
     missions at the participating National Laboratory or single-
     purpose research facility;
       (C) the potential of the project to promote the use of 
     commercial research, technology, products, processes, and 
     services by the participating National Laboratory or single-
     purpose research facility to achieve its departmental mission 
     or the commercial development of technological innovations 
     made at the participating National Laboratory or single-
     purpose research facility;
       (D) the commitment shown by non-Federal organizations to 
     the project, based primarily on the nature and amount of the 
     financial and other resources they will risk on the project;
       (E) the extent to which the project involves a wide variety 
     and number of institutions of higher education, nonprofit 
     institutions, and technology-related business concerns that 
     can support the missions of the participating National 
     Laboratory or single-purpose research facility and that will 
     make substantive contributions to achieving the goals of the 
     project;
       (F) the extent of participation in the project by agencies 
     of State, tribal, or local governments that will make 
     substantive contributions to achieving the goals of the 
     project;
       (G) the extent to which the project focuses on promoting 
     the development of technology-related business concerns that 
     are small business concerns or involves such small business 
     concerns substantively in the project; and
       (H) such other criteria as the Secretary determines to be 
     appropriate.
       (f) Report to Congress.--Not later than January 1, 2004, 
     the Secretary shall report to Congress on whether the 
     Technology Infrastructure Program should be continued and, if 
     so, how the program should be managed.
       (g) Definitions.--In this section:
       (1) Technology cluster.--The term ``technology cluster'' 
     means a concentration of--
       (A) technology-related business concerns;
       (B) institutions of higher education; or
       (C) other nonprofit institutions,

     that reinforce each other's performance in the areas of 
     technology development through formal or informal 
     relationships.
       (2) Technology-related business concern.--The term 
     ``technology-related business concern'' means a for-profit 
     corporation, company, association, firm, partnership, or 
     small business concern that--
       (A) conducts scientific or engineering research,
       (B) develops new technologies,
       (C) manufactures products based on new technologies, or
       (D) performs technological services.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for activities under this 
     section $10,000,000 for each of fiscal years 2003 and 2004.

     SEC. 1409. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

        (a) Small Business Advocate.--The Secretary shall require 
     the Director of each National Laboratory, and may require the 
     Director of a single-purpose research facility, to appoint a 
     small business advocate to--
       (1) increase the participation of small business concerns, 
     including socially and economically disadvantaged small 
     business concerns, in procurement, collaborative research, 
     technology licensing, and technology transfer activities 
     conducted by the National Laboratory or single-purpose 
     research facility;
       (2) report to the Director of the National Laboratory or 
     single-purpose research facility on the actual participation 
     of small business concerns in procurement and collaborative 
     research along with recommendations, if appropriate, on how 
     to improve participation;
       (3) make available to small business concerns training, 
     mentoring, and clear, up-to-date information on how to 
     participate in the procurement and collaborative research, 
     including how to submit effective proposals;
       (4) increase the awareness inside the National Laboratory 
     or single-purpose research facility of the capabilities and 
     opportunities presented by small business concerns; and
       (5) establish guidelines for the program under subsection 
     (b) and report on the effectiveness of such program to the 
     Director of the National Laboratory or single-purpose 
     research facility.
       (b) Establishment of Small Business Assistance Program.--
     The Secretary shall require the Director of each National 
     Laboratory, and may require the director of a single-purpose 
     research facility, to establish a program to provide small 
     business concerns--
       (1) assistance directed at making them more effective and 
     efficient subcontractors or suppliers to the National 
     Laboratory or single-purpose research facility; or
       (2) general technical assistance, the cost of which shall 
     not exceed $10,000 per instance of assistance, to improve the 
     small business concern's products or services.
       (c) Use of Funds.--None of the funds expended under 
     subsection (b) may be used for direct grants to the small 
     business concerns.
       (d) Definitions.--In this section:
       (1) Small business concern.--The term ``small business 
     concern'' has the meaning given such term in section 3 of the 
     Small Business Act (15 U.S.C. 632).

[[Page S1316]]

       (2) Socially and economically disadvantaged small business 
     concerns.--The term ``socially and economically disadvantaged 
     small business concerns'' has the meaning given such term in 
     section 8(a)(4) of the Small Business Act (15 U.S.C. 
     637(a)(4)).

     SEC. 1410. OTHER TRANSACTIONS.

       (a) In General.--Section 646 of the Department of Energy 
     Organization Act (42 U.S.C. 7256) is amended by adding at the 
     end the following:
       ``(g) Other Transactions Authority.--(1) In addition to 
     other authorities granted to the Secretary to enter into 
     procurement contracts, leases, cooperative agreements, 
     grants, and other similar arrangements, the Secretary may 
     enter into other transactions with public agencies, private 
     organizations, or persons on such terms as the Secretary may 
     deem appropriate in furtherance of basic, applied, and 
     advanced research functions now or hereafter vested in the 
     Secretary. Such other transactions shall not be subject to 
     the provisions of section 9 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5908).
       ``(2)(A) The Secretary of Energy shall ensure that--
       ``(i) to the maximum extent practicable, no transaction 
     entered into under paragraph (1) provides for research that 
     duplicates research being conducted under existing programs 
     carried out by the Department of Energy; and
       ``(ii) to the extent that the Secretary determines 
     practicable, the funds provided by the Government under a 
     transaction authorized by paragraph (1) do not exceed the 
     total amount provided by other parties to the transaction.
       ``(B) A transaction authorized by paragraph (1) may be used 
     for a research project when the use of a standard contract, 
     grant, or cooperative agreement for such project is not 
     feasible or appropriate.
       ``(3)(A) The Secretary shall not disclose any trade secret 
     or commercial or financial information submitted by a non-
     Federal entity under paragraph (1) that is privileged and 
     confidential.
       ``(B) The Secretary shall not disclose, for five years 
     after the date the information is received, any other 
     information submitted by a non-Federal entity under paragraph 
     (1), including any proposal, proposal abstract, document 
     supporting a proposal, business plan, or technical 
     information that is privileged and confidential.
       ``(C) The Secretary may protect from disclosure, for up to 
     five years, any information developed pursuant to a 
     transaction under paragraph (1) that would be protected from 
     disclosure under section 552(b)(4) of title 5, United States 
     Code, if obtained from a person other than a Federal 
     agency.''.
       (b) Implementation.--Not later than six months after the 
     date of enactment of this section, the Department shall 
     establish guidelines for the use of other transactions.

     SEC. 1411. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

       Not later than two years after the enactment of this 
     section, the Secretary, acting through the Technology 
     Transfer Coordinator under section 1407, shall determine 
     whether each contractor operating a National Laboratory or 
     single-purpose research facility has policies and procedures 
     that do not create disincentives to the transfer of 
     scientific and technical personnel among the contractor-
     operated National Laboratories or contractor-operated single-
     purpose research facilities.

     SEC. 1412. NATIONAL ACADEMY OF SCIENCES REPORT.

       Within 90 days after the date of enactment of this Act, the 
     Secretary shall contract with the National Academy of 
     Sciences to--
       (1) conduct a study on the obstacles to accelerating the 
     innovation cycle for energy technology, and
       (2) report to the Congress recommendations for shortening 
     the cycle of research, development, and deployment.

     SEC. 1413. REPORT ON TECHNOLOGY READINESS AND BARRIERS TO 
                   TECHNOLOGY TRANSFER.

       (a) In General.--The Secretary, acting through the 
     Technology Partnership Working Group and in consultation with 
     representatives of affected industries, universities, and 
     small business concerns, shall--
       (1) assess the readiness for technology transfer of energy 
     technologies developed through projects funded from 
     appropriations authorized under subtitles A through D of 
     title XIV, and
       (2) identify barriers to technology transfer and 
     cooperative research and development agreements between the 
     Department or a National Laboratory and a non-federal person; 
     and
       (3) make recommendations for administrative or legislative 
     actions needed to reduce or eliminate such barriers.
       (b) Report.--The Secretary provide a report to Congress and 
     the President on activities carried out under this section 
     not later than one year after the date of enactment of this 
     section, and shall update such report on a biennial basis, 
     taking into account progress toward eliminating barriers to 
     technology transfer identified in previous reports under this 
     section.

                    TITLE XV--PERSONNEL AND TRAINING

     SEC. 1501. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

       (a) Workforce Trends.--
       (1) Monitoring.--The Secretary of Energy (in this title 
     referred to as the ``Secretary''), acting through the 
     Administrator of the Energy Information Administration, in 
     consultation with the Secretary of Labor, shall monitor 
     trends in the workforce of skilled technical personnel 
     supporting energy technology industries, including renewable 
     energy industries, companies developing and commercializing 
     devices to increase energy-efficiency, the oil and gas 
     industry, nuclear power industry, the coal industry, and 
     other industrial sectors as the Secretary may deem 
     appropriate.
       (2) Annual reports.--The Administrator of the Energy 
     Information Administration shall include statistics on energy 
     industry workforce trends in the annual reports of the Energy 
     Information Administration.
       (3) Special reports.--The Secretary shall report to the 
     appropriate committees of Congress whenever the Secretary 
     determines that significant shortfalls of technical personnel 
     in one or more energy industry segments are forecast or have 
     occurred.
       (b) Traineeship Grants for Technically Skilled Personnel.--
       (1) Grant programs.--The Secretary shall establish grant 
     programs in the appropriate offices of the Department to 
     enhance training of technically skilled personnel for which a 
     shortfall is determined under subsection (a).
       (2) Eligible institutions.--As determined by the Secretary 
     to be appropriate to the particular workforce shortfall, the 
     Secretary shall make grants under paragraph (1) to--
       (A) an institution of higher education;
       (B) a postsecondary educational institution providing 
     vocational and technical education (within the meaning given 
     those terms in section 3 of the Carl D. Perkins Vocational 
     and Technical Education Act of 1998 (20 U.S.C. 2302));
       (C) appropriate agencies of State, local, or tribal 
     governments; or
       (D) joint labor and management training organizations with 
     state or federally recognized apprenticeship programs and 
     other employee-based training organizations as the Secretary 
     considers appropriate.
       (c) Definition.--For purposes of this section, the term 
     ``skilled technical personnel'' means journey and apprentice 
     level workers who are enrolled in or have completed a state 
     or federally recognized apprenticeship program and other 
     skilled workers in energy technology industries.
       (d) Authorization of Appropriations.--From amounts 
     authorized under section 1241(c), there are authorized to be 
     appropriated to the Secretary for activities under this 
     section such sums as may be necessary for each fiscal year.

     SEC. 1502. POSTDOCTORAL AND SENIOR RESEARCH FELLOWSHIPS IN 
                   ENERGY RESEARCH.

       (a) Postdoctoral Fellowships.--The Secretary shall 
     establish a program of fellowships to encourage outstanding 
     young scientists and engineers to pursue postdoctoral 
     research appointments in energy research and development at 
     institutions of higher education of their choice. In 
     establishing a program under this subsection, the Secretary 
     may enter into appropriate arrangements with the National 
     Academy of Sciences to help administer the program.
       (b) Distinguished Senior Research Fellowships.--The 
     Secretary shall establish a program of fellowships to allow 
     outstanding senior researchers in energy research and 
     development and their research groups to explore research and 
     development topics of their choosing for a fixed period of 
     time. Awards under this program shall be made on the basis of 
     past scientific or technical accomplishment and promise for 
     continued accomplishment during the period of support, which 
     shall not be less than 3 years.
       (c) Authorization of Appropriations.--From amounts 
     authorized under section 1241(c), there are authorized to be 
     appropriated to the Secretary for activities under this 
     section such sums as may be necessary for each fiscal year.

     SEC. 1503. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY 
                   PERSONNEL.

       (a) Model Guidelines.--The Secretary shall, in cooperation 
     with electric generation, transmission, and distribution 
     companies and recognized representatives of employees of 
     those entities, develop model employee training guidelines to 
     support electric supply system reliability and safety.
       (b) Content of Guidelines.--The guidelines under this 
     section shall include--
       (1) requirements for worker training, competency, and 
     certification, developed using criteria set forth by the 
     Utility Industry Group recognized by the National Skill 
     Standards Board; and
       (2) consolidation of existing guidelines on the 
     construction, operation, maintenance, and inspection of 
     electric supply generation, transmission and distribution 
     facilities such as those established by the National Electric 
     Safety Code and other industry consensus standards.

     SEC. 1504. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING 
                   TECHNOLOGIES.

       The Secretary shall establish a National Center on Energy 
     Management and Building Technologies, to carry out research, 
     education, and training activities to facilitate the 
     improvement of energy efficiency and indoor air quality in 
     industrial, commercial and residential buildings. The 
     National Center shall be established in cooperation with--
       (1) recognized representatives of employees in the heating, 
     ventilation, and air conditioning industry;
       (2) contractors that install and maintain heating, 
     ventilation and air conditioning systems and equipment;

[[Page S1317]]

       (3) manufacturers of heating, ventilation and air-
     conditioning systems and equipment;
       (4) representatives of the advanced building envelope 
     industry, including design, windows, lighting, and insulation 
     industries; and
       (5) other entities as appropriate.

     SEC. 1505. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND 
                   TECHNICAL CAREERS.

       (a) Department of Energy Science Education Programs.--
       Section 3164 of the Department of Energy Science Education 
     Enhancement Act (42 U.S.C. 7381a) is amended by adding at the 
     end the following:
       ``(c) Programs for Women and Minority Students.--In 
     carrying out a program under subsection (a), the Secretary 
     shall give priority to activities that are designed to 
     encourage women and minority students to pursue scientific 
     and technical careers.''.
       (b) Partnerships With Historically Black Colleges and 
     Universities, Hispanic-Servicing Institutions, and Tribal 
     Colleges.--The Department of Energy Science Education 
     Enhancement Act (42 U.S.C. 7381 et seq.) is amended--
       (1) by redesignating sections 3167 and 3168 as sections 
     3168 and 3169, respectively; and
       (2) by inserting after section 3166 the following:

     ``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES 
                   AND UNIVERSITIES, HISPANIC-SERVING 
                   INSTITUTIONS, AND TRIBAL COLLEGES.

       ``(a) Definitions.--In this section:
       ``(1) Hispanic-serving institution.--The term `Hispanic-
     serving institution' has the meaning given the term in 
     section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).
       ``(2) Historically black college or university.--The term 
     `historically Black college or university' has the meaning 
     given the term `part B institution' in section 322 of the 
     Higher Education Act of 1965 (20 U.S.C. 1061).
       ``(3) National laboratory.--The term `National Laboratory' 
     has the meaning given the term in section 1203 of the Energy 
     Science and Technology Enhancement Act of 2002.
       ``(4) Science facility.--The term `science facility' has 
     the meaning given the term `single-purpose research facility' 
     in section 1401 of the Energy Science and Technology 
     Enhancement Act of 2002.
       ``(5) Tribal college.--The term `tribal college' has the 
     meaning given the term `tribally controlled college or 
     university' in section 2(a) of the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 
     1801(a)).
       ``(b) Education Partnership.--
       ``(1) In general.--The Secretary shall direct the Director 
     of each National Laboratory, and may direct the head of any 
     science facility, to increase the participation of 
     historically Black colleges or universities, Hispanic-serving 
     institutions, or tribal colleges in activities that increase 
     the capacity of the historically Black colleges or 
     universities, Hispanic-serving institutions, or tribal 
     colleges to train personnel in science or engineering.
       ``(2) Activities.--An activity under paragraph (1) may 
     include--
       ``(A) collaborative research;
       ``(B) a transfer of equipment;
       ``(C) training of personnel at a National Laboratory or 
     science facility; and
       ``(D) a mentoring activity by personnel at a National 
     Laboratory or science facility.
       ``(c) Report.--Not later than 2 years after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committee on Science of the House of Representatives and the 
     Committee on Energy and Natural Resources of the Senate a 
     report on the activities carried out under this section.''.

             DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES

                    TITLE XVI--TECHNOLOGY ASSESSMENT

     SEC. 1601. NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT 
                   SERVICE.

       The National Science and Technology Policy, Organization, 
     and Priorities Act of 1976 (42 U.S.C. 6601 et seq.) is 
     amended by adding at the end the following:

    ``TITLE VII--NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT SERVICE

     ``SEC. 701. ESTABLISHMENT.

       ``There is hereby created a Science and Technology 
     Assessment Service (hereinafter referred to as the 
     `Service'), which shall be within and responsible to the 
     legislative branch of the Government.

     ``SEC. 702. COMPOSITION.

       ``The Service shall consist of a Science and Technology 
     Board (hereinafter referred to as the `Board') which shall 
     formulate and promulgate the policies of the Service, and a 
     Director who shall carry out such policies and administer the 
     operations of the Service.

     ``SEC. 703. FUNCTIONS AND DUTIES.

       ``The Service shall coordinate and develop information for 
     Congress relating to the uses and application of technology 
     to address current national science and technology policy 
     issues. In developing such technical assessments for 
     Congress, the Service shall utilize, to the extent 
     practicable, experts selected in coordination with the 
     National Research Council.

     ``SEC. 704. INITIATION OF ACTIVITIES.

       ``Science and technology assessment activities undertaken 
     by the Service may be initiated upon the request of--
       ``(1) the Chairman of any standing, special, or select 
     committee of either House of the Congress, or of any joint 
     committee of the Congress, acting for himself or at the 
     request of the ranking minority member or a majority of the 
     committee members;
       ``(2) the Board; or
       ``(3) the Director.

       ``SEC. 705. ADMINISTRATION AND SUPPORT.

       ``The Director of the Science and Technology Assessment 
     Service shall be appointed by the Board and shall serve for a 
     term of 6 years unless sooner removed by the Board. The 
     Director shall receive basic pay at the rate provided for 
     level III of the Executive Schedule under section 5314 of 
     title 5, United States Code. The Director shall contract for 
     administrative support from the Library of Congress.

       ``SEC. 706. AUTHORITY.

       ``The Service shall have the authority, within the limits 
     of available appropriations, to do all things necessary to 
     carry out the provisions of this section, including, but 
     without being limited to, the authority to--
       ``(1) make full use of competent personnel and 
     organizations outside the Office, public or private, and form 
     special ad hoc task forces or make other arrangements when 
     appropriate;
       ``(2) enter into contracts or other arrangements as may be 
     necessary for the conduct of the work of the Office with any 
     agency or instrumentality of the United States, with any 
     State, territory, or possession or any political subdivision 
     thereof, or with any person, firm, association, corporation, 
     or educational institution, with or without reimbursement, 
     without performance or other bonds, and without regard to 
     section 3709 of the Revised Statutes (41 U.S.C. 51);
       ``(3) accept and utilize the services of voluntary and 
     uncompensated personnel necessary for the conduct of the work 
     of the Service and provide transportation and subsistence as 
     authorized by section 5703 of title 5, United States Code, 
     for persons serving without compensation; and
       ``(4) prescribe such rules and regulations as it deems 
     necessary governing the operation and organization of the 
     Service.

     ``SEC. 707. BOARD.

       ``The Board shall consist of 13 members as follows--
       ``(1) 6 Members of the Senate, appointed by the President 
     pro tempore of the Senate, 3 from the majority party and 3 
     from the minority party;
       ``(2) 6 Members of the House of Representatives appointed 
     by the Speaker of the House of Representatives, 3 from the 
     majority party and 3 from the minority party; and
       ``(3) the Director, who shall not be a voting member.

     ``SEC. 708. REPORT TO CONGRESS.

       ``The Service shall submit to the Congress an annual report 
     which shall include, but not be limited to, an evaluation of 
     technology assessment techniques and identification, insofar 
     as may be feasible, of technological areas and programs 
     requiring future analysis. The annual report shall be 
     submitted not later than March 15 of each year.

     ``SEC. 709. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Service 
     such sums as are necessary to fulfill the requirements of 
     this title.''.

                          TITLE XVII--STUDIES

     SEC. 1701. REGULATORY REVIEWS.

       (a) Regulatory Reviews.--Not later than one year after the 
     date of enactment of this section and every five years 
     thereafter, each Federal agency shall review relevant 
     regulations and standards to identify--
       (1) existing regulations and standards that act as barriers 
     to--
       (A) market entry for emerging energy technologies 
     (including fuel cells, combined heat and power, distributed 
     power generation, and small-scale renewable energy), and
       (B) market development and expansion for existing energy 
     technologies (including combined heat and power, small-scale 
     renewable energy, and energy recovery in industrial 
     processes), and
       (2) actions the agency is taking or could take to--
       (A) remove barriers to market entry for emerging energy 
     technologies and to market expansion for existing 
     technologies,
       (B) increase energy efficiency and conservation, or
       (C) encourage the use of new and existing processes to meet 
     energy and environmental goals.
       (b) Report to Congress.--Not later than 18 months after the 
     date of enactment of this section, and every five years 
     thereafter, the Director of the Office of Science and 
     Technology Policy shall report to the Congress on the results 
     of the agency reviews conducted under subsection (a).
       (c) Contents of the Report.--The report shall--
       (1) identify all regulatory barriers to--
       (A) the development and commercialization of emerging 
     energy technologies and processes, and
       (B) the further development and expansion of existing 
     energy conservation technologies and processes,
       (2) actions taken, or proposed to be taken, to remove such 
     barriers, and
       (3) recommendations for changes in laws or regulations that 
     may be needed to--
       (A) expedite the siting and development of energy 
     production and distribution facilities,
       (B) encourage the adoption of energy efficiency and process 
     improvements,
       (C) facilitate the expanded use of existing energy 
     conservation technologies, and
       (D) reduce the environmental impacts of energy facilities 
     and processes through transparent and flexible compliance 
     methods.

[[Page S1318]]

     SEC. 1702. ASSESSMENT OF DEPENDENCE OF HAWAII ON OIL.

       (a) Study.--Not later than 60 days after the enactment of 
     this Act, the Secretary of Energy shall initiate a study that 
     assesses the economic risk posed by the dependence of Hawaii 
     on oil as the principal source of energy.
       (b) Scope of the Study.--The Secretary shall assess--
       (1) the short- and long-term threats to the economy of 
     Hawaii posed by insecure supply and volatile prices;
       (2) the impact on availability and cost of refined 
     petroleum products if oil-fired electric generation is 
     displaced by other sources;
       (3) the feasibility of increasing the contribution of 
     renewable sources to the overall energy requirements of 
     Hawaii; and
       (4) the feasibility of using liquid natural gas as a source 
     of energy to supplement oil.
       (c) Report.--Not later than 300 days after the date of 
     enactment of this section, the Secretary shall prepare, in 
     consultation with appropriate agencies of the State of 
     Hawaii, industry representatives, and citizen groups, and 
     shall submit to Congress a report detailing the Secretary's 
     findings, conclusions, and recommendations. The report shall 
     include--
       (1) a detailed analysis of the availability, economics, 
     infrastructure needs, and recommendations to increase the 
     contribution of renewable energy sources to the overall 
     energy requirements of Hawaii; and
       (2) a detailed analysis of the use of liquid natural gas, 
     including--
       (A) the availability of supply,
       (B) economics,
       (C) environmental and safety considerations,
       (D) technical limitations,
       (E) infrastructure and transportation requirements,
       (F) siting and facility configurations, including--
       (i) onshore and offshore alternatives, and
       (ii) environmental and safety considerations of both 
     onshore and offshore alternatives.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy such sums as 
     may be necessary to carry out the purposes of this section.

     SEC. 1703. STUDY OF SITING AN ELECTRIC TRANSMISSION SYSTEM ON 
                   AMTRAK RIGHT-OF-WAY.

       (a) Study.--The Secretary of Energy shall contract with 
     Amtrak to conduct a study of the feasibility of building and 
     operating a new electric transmission system on the Amtrak 
     right-of-way in the Northeast Corridor.
       (b) Scope of the Study.--The study shall focus on siting 
     the new system on the Amtrak right-of-way within the 
     Northeastern Corridor between Washington, D.C., and New 
     Rochelle, New York, including the Amtrak right-of-way between 
     Philadelphia, Pennsylvania and Harrisburg, Pennsylvania.
       (c) Contents of the Study.--The study shall consider--
       (1) alternative geographic configuration of a new 
     electronic transmission system on the Amtrak right-of-way;
       (2) alternative technologies for the system;
       (3) the estimated costs of building and operating each 
     alternative;
       (4) alternative means of financing the system;
       (5) the environmental risks and benefits of building and 
     operating each alternative as well as environmental risks and 
     benefits of building and operating the system on the 
     Northeast Corridor rather than at other locations;
       (6) engineering and technological obstacles to building and 
     operating each alternative; and
       (7) the extent to which each alternative would enhance the 
     reliability of the electric transmission grid and enhance 
     competition in the sale of electric energy at wholesale 
     within the Northeast Corridor.
       (d) Recommendations.--The study shall recommend the optimal 
     geographic configuration, the optimal technology, the optimal 
     engineering design, and the optimal means of financing for 
     the new system from among the alternatives considered.
       (e) Report.--The Secretary of Energy shall submit the 
     completed study to the Committee on Energy and Natural 
     Resources of the United States Senate and the Committee on 
     Energy and Commerce of the House of Representatives not later 
     than 270 days after the date of enactment of this section.
       (f) Definitions.--For purposes of this section--
       (1) the term ``Amtrak'' means the National Railroad 
     Passenger Corporation established under chapter 243 of title 
     49, United States Code; and
       (2) the term ``Northeast Corridor'' shall have the meaning 
     given such term under section 24102(7) of title 49, United 
     States Code.

               DIVISION G--ENERGY INFRASTRUCTURE SECURITY

              TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE

               Subtitle A--Department of Energy Programs

     SEC. 1801. DEFINITIONS.

       In this title:
       (1) Critical energy infrastructure.--
       (A) In general.--The term ``critical energy 
     infrastructure'' means a physical or cyber-based system or 
     service for--
       (i) the generation, transmission or distribution of 
     electric energy; or
       (ii) the production, refining, or storage of petroleum, 
     natural gas, or petroleum product--

     the incapacity or destruction of which would have a 
     debilitating impact on the defense or economic security of 
     the United States.
       (B) Exclusion.--The term shall not include a facility that 
     is licensed by the Nuclear Regulatory Commission under 
     section 103 or 104 b. of the Atomic Energy Act of 1954 (42 
     U.S.C. 2133 and 2134(b)).
       (2) Department; national laboratory; secretary.--The terms 
     ``Department'', ``National Laboratory'', and ``Secretary'' 
     have the meaning given such terms in section 1203.

     SEC. 1802. ROLE OF THE DEPARTMENT OF ENERGY.

       Section 102 of the Department of Energy Organization Act 
     (42 U.S.C. 7112) is amended by adding at the end the 
     following:
       ``(20) To ensure the safety, reliability, and security of 
     the nation's energy infrastructure, and to respond to any 
     threat to or disruption of such infrastructure, through 
     activities including--
       ``(A) research and development;
       ``(B) financial assistance, technical assistance, and 
     cooperative activities with States, industry, and other 
     interested parties; and
       ``(C) education and public outreach activities.''.

     SEC. 1803. CRITICAL ENERGY INFRASTRUCTURE PROGRAMS.

       (a) Programs.--In addition to the authorities otherwise 
     provided by law (including section 1261), the Secretary is 
     authorized to establish programs of financial, technical, or 
     administrative assistance to--
       (1) enhance the security of critical energy infrastructure 
     in the United States;
       (2) develop and disseminate, in cooperation with industry, 
     best practices for critical energy infrastructure assurance; 
     and
       (3) protect against, mitigate the effect of, and improve 
     the ability to recover from disruptive incidents affecting 
     critical energy infrastructure.
       (b) Requirements.--A program established under this section 
     shall--
       (1) be undertaken in consultation with the advisory 
     committee established under section 1804;
       (2) have available to it the scientific and technical 
     resources of the Department, including resources at a 
     National Laboratory; and
       (3) be consistent with any overall Federal plan for 
     national infrastructure security developed by the President 
     or his designee.

     SEC. 1804. ADVISORY COMMITTEE ON ENERGY INFRASTRUCTURE 
                   SECURITY.

       (a) Establishment.--The Secretary shall establish an 
     advisory committee, or utilize an existing advisory committee 
     within the Department, to advise the Secretary on policies 
     and programs related to the security of U.S. energy 
     infrastructure.
       (b) Balanced Membership.--The Secretary shall ensure that 
     the advisory committee established or utilized under 
     subsection (a) has a membership with an appropriate balance 
     among the various interests related to energy infrastructure 
     security, including--
       (1) scientific and technical experts;
       (2) industrial managers;
       (3) worker representatives;
       (4) insurance companies or organizations;
       (5) environmental organizations;
       (6) representatives of State, local, and tribal 
     governments; and
       (7) such other interests as the Secretary may deem 
     appropriate.
       (c) Expenses.--Members of the advisory committee 
     established or utilized under subsection (a) shall serve 
     without compensation, and shall be allowed travel expenses, 
     including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the committee.

     SEC. 1805. BEST PRACTICES AND STANDARDS FOR ENERGY 
                   INFRASTRUCTURE SECURITY.

       The Secretary, in consultation with the advisory committee 
     under section 1804, shall enter into appropriate arrangements 
     with one or more standard-setting organizations, or similar 
     organizations, to assist the development of industry best 
     practices and standards for security related to protecting 
     critical energy infrastructure.

            Subtitle B--Department of the Interior Programs

     SEC. 1811. OUTER CONTINENTAL SHELF ENERGY INFRASTRUCTURE 
                   SECURITY.

       (a) Definitions.--In this section:
       (1) Approved state plan.--The term ``approved State plan'' 
     means a State plan approved by the Secretary under subsection 
     (c)(3).
       (2) Coastline.--The term ``coastline'' has the same meaning 
     as the term ``coast line'' as defined in subsection 2(c) of 
     the Submerged Lands Act (43 U.S.C. 1301(c)).
       (3) Critical ocs energy infrastructure facility.--The term 
     ``OCS critical energy infrastructure facility'' means--
       (A) a facility located in an OCS Production State or in the 
     waters of such state related to the production of oil or gas 
     on the Outer Continental Shelf; or
       (B) a related facility located in an OCS Production State 
     or in the waters of such state that carries out a public 
     service, transportation, or infrastructure activity critical 
     to the operation of an Outer Continental Shelf energy 
     infrastructure facility, as determined by the Secretary.

[[Page S1319]]

       (4) Distance.--The term ``distance'' means the minimum 
     great circle distance, measured in statute miles.
       (5) Leased tract.--
       (A) In general.--The term ``leased tract'' means a tract 
     that--
       (i) is subject to a lease under section 6 or 8 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1335, 1337) for the 
     purpose of drilling for, developing, and producing oil or 
     natural gas resources; and
       (ii) consists of a block, a portion of a block, a 
     combination of blocks or portions of blocks, or a combination 
     of portions of blocks, as--

       (I) specified in the lease; and
       (II) depicted on an outer Continental Shelf official 
     protraction diagram.

       (B) Exclusion.--The term ``leased tract'' does not include 
     a tract described in subparagraph (A) that is located in a 
     geographic area subject to a leasing moratorium on January 1, 
     2001, unless the lease was in production on that date.
       (6) OCS political subdivision.--The term ``OCS political 
     subdivision'' means a county, parish, borough or any 
     equivalent subdivision of an OCS Production State all or part 
     of which subdivision lies within the coastal zone (as defined 
     in section 304(1) of the Coastal Zone Management Act of 1972 
     (16 U.S.C. 1453(1)).
       (7) OCS production state.--The term ``OCS Production 
     State'' means the State of--
       (A) Alaska;
       (B) Alabama;
       (C) California;
       (D) Florida;
       (F) Louisiana;
       (G) Mississippi; or
       (H) Texas.
       (8) Production.--The term ``production'' has the meaning 
     given the term in section 2 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331).
       (9) Program.--The term ``program'' means the Outer 
     Continental Shelf Energy Infrastructure Security Program 
     established under subsection (b).
       (10) Qualified outer continental shelf revenues.--The term 
     ``qualified Outer Continental Shelf revenues'' means all 
     amounts received by the United States from each leased tract 
     or portion of a leased tract lying seaward of the zone 
     defined and governed by section 8(g) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.), or lying within 
     such zone but to which section 8(g) does not apply, the 
     geographic center of which lies within a distance of 200 
     miles from any part of the coastline of any State, 
     including bonus bids, rents, royalties (including payments 
     for royalties taken in kind and sold), net profit share 
     payments, and related late payment interest. Such term 
     does not include any revenues from a leased tract or 
     portion of a leased tract that is included within any area 
     of the Outer Continental Shelf where a moratorium on new 
     leasing was in effect as of January 1, 2001, unless the 
     lease was issued prior to the establishment of the 
     moratorium and was in production on January 1, 2001.
       (11) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       (12) State plan.--The term `State plan' means a State plan 
     described in subsection (b).
       (b) Establishment.--The Secretary shall establish a 
     program, to be known as the ``Outer Continental Shelf Energy 
     Infrastructure Security Program,'' under which the Secretary 
     shall provide funds to OCS Production States to implement 
     approved State plans to provide security against hostile and 
     natural threats to critical OCS energy infrastructure 
     facilities and support of any necessary public service or 
     transportation activities that are needed to maintain the 
     safety and operation of critical energy infrastructure 
     activities. For purposes of this program, restoration of any 
     coastal wetland shall be considered to be an activity that 
     secures critical OCS energy infrastructure facilities from a 
     natural threat.
       (c) State Plans.--
       (1) Initial plan.--Not later than 180 days after the date 
     of enactment of this Act, to be eligible to receive funds 
     under the program, the Governor of an OCS Production State 
     shall submit to the Secretary a plan to provide security 
     against hostile and natural threats to critical energy 
     infrastructure facilities in the OCS Production State and to 
     support any of the necessary public service or transportation 
     activities that are needed to maintain the safety and 
     operation of critical energy infrastructure facilities. Such 
     plan shall include--
       (A) the name of the State agency that will have the 
     authority to represent and act for the State in dealing with 
     the Secretary for purposes of this section;
       (B) a program for the implementation of the plan which 
     describes how the amounts provided under this section will be 
     used;
       (C) a contact for each OCS political subdivision and 
     description of how such political subdivisions will use 
     amounts provided under this section, including a 
     certification by the Governor that such uses are consistent 
     with the requirements of this section; and
       (D) Measures for taking into account other relevant Federal 
     resources and programs.
       (2) Annual reviews.--Not later than 1 year after the date 
     of submission of the plan and annually thereafter, the 
     Governor of an OCS Production State shall--
       (A) review the approved State plan; and
       (B) submit to the Secretary any revised State plan 
     resulting from the review.
       (3) Approval of plans.--
       (A) In general.--In consultation with appropriate Federal 
     security officials and the Secretaries of Commerce and 
     Energy, the Secretary shall--
       (i) approve each State plan; or
       (ii) recommend changes to the State plan.
       (B) Resubmission of state plans.--If the Secretary 
     recommends changes to a State plan under subparagraph 
     (A)(ii), the Governor of the OCS Production State may 
     resubmit a revised State plan to the Secretary for approval.
       (4) Availability of plans.--The Secretary shall provide to 
     Congress a copy of each approved State plan.
       (5) Consultation and public comment.--
       (A) Consultation.--The Governor of an OCS Production State 
     shall develop the State plan in consultation with Federal, 
     State, and local law enforcement and public safety officials, 
     industry, Indian tribes, the scientific community, and other 
     persons as appropriate.
       (B) Public comment.--The Governor of an OCS Production 
     State may solicit public comments on the State plan to the 
     extent that the Governor determines to be appropriate.
       (d) Allocation of Amounts by the Secretary.--The Secretary 
     shall allocate the amounts made available for the purposes of 
     carrying out the program provided for by this section among 
     OCS Production States as follows--
       (1) 25 percent of the amounts shall be divided equally 
     among OCS Production States; and
       (2) 75 percent of the amounts shall be divided among OCS 
     Production States on the basis of the proximity of each OCS 
     Production State to offshore locations at which oil and gas 
     are being produced.
       (e) Calculation.--The amount for each OCS Production State 
     under paragraph (d)(2) shall be calculated based on the ratio 
     of qualified OCS revenues generated off the coastline of the 
     OCS Production State to the qualified OCS revenues generated 
     off the coastlines of all OCS Production States for the prior 
     five-year period. Where there is more than one OCS Production 
     State within 200 miles of a leased tract, the amount of each 
     OCS Production State's payment under paragraph (d)(2) for 
     such leased tract shall be inversely proportional to the 
     distance between the nearest point on the coastline of such 
     State and the geographic center of each leased tract or 
     portion of the leased tract (to the nearest whole mile) that 
     is within 200 miles of that coastline, as determined by the 
     Secretary. A leased tract or portion of a leased tract shall 
     be excluded if the tract or portion is located in a 
     geographic area where a moratorium on new leasing was in 
     effect on January 1, 2001, unless the lease was issued prior 
     to the establishment of the moratorium and was in production 
     on January 1, 2001.
       (f) Payments to OCS Political Subdivisions.--Thirty-five 
     percent of each OCS Production State's allocable share as 
     determined under subsection (e) shall be paid directly to the 
     OCS political subdivisions by the Secretary based on the 
     following formula:
       (1) 25 percent shall be allocated based on the ratio of 
     such OCS political subdivision's population to the population 
     of all OCS political subdivisions in the OCS Production 
     State.
       (2) 25 percent shall be allocated based on the ratio of 
     such OCS political subdivision's coastline miles to the 
     coastline miles of all OCS political subdivisions in the OCS 
     Production State. For purposes of this subsection, those OCS 
     political subdivisions without coastlines shall be considered 
     to have a coastline that is the average length of the 
     coastlines of all political subdivisions in the state.
       (3) 50 percent shall be allocated based on the relative 
     distance of such OCS political subdivision from any leased 
     tract used to calculate that OCS Production State's 
     allocation using ratios that are inversely proportional to 
     the distance between the point in the coastal political 
     subdivision closest to the geographic center of each leased 
     tract or portion, as determined by the Secretary. For 
     purposes of the calculations under this subparagraph, a 
     leased tract or portion of a leased tract shall be excluded 
     if the leased tract or portion is located in a geographic 
     area where a moratorium on new leasing was in effect on 
     January 1, 2001, unless the lease was issued prior to the 
     establishment of the moratorium and was in production on 
     January 1, 2001.
       (g) Failure To Have Plan Approved.--Any amount allocated to 
     an OCS Production State or OCS political subdivision but not 
     disbursed because of a failure to have an approved Plan under 
     this section shall be allocated equally by the Secretary 
     among all other OCS Production States in a manner consistent 
     with this subsection except that the Secretary shall hold in 
     escrow such amount until the final resolution of any appeal 
     regarding the disapproval of a plan submitted under this 
     section. The Secretary may waive the provisions of this 
     paragraph and hold an OCS Production State's allocable share 
     in escrow if the Secretary determines that such State is 
     making a good faith effort to develop and submit, or update, 
     a Plan.
       (h) Use of Amounts Allocated by the Secretary.--
       (1) In general.--Amounts allocated by the Secretary under 
     subsection (d) may be used

[[Page S1320]]

     only in accordance with a plan approved pursuant to 
     subsection (c) for--
       (A) activities to secure critical OCS energy infrastructure 
     facilities from human or natural threats; and
       (B) support of any necessary public service or 
     transportation activities that are needed to maintain the 
     safety and operation of critical OCS energy infrastructure 
     facilities.
       (2) Restoration of coastal wetland.--For the purpose of 
     subparagraph (1)(A), restoration of any coastal wetland shall 
     be considered to be an activity that secures critical OCS 
     energy infrastructure facilities from a natural threat.
       (i) Failure To Have Use.--Any amount allocated to an OCS 
     political subdivision but not disbursed because of a failure 
     to have a qualifying use as described in subsection (h) shall 
     be allocated by the Secretary to the OCS Production State in 
     which the OCS political subdivision is located except that 
     the Secretary shall hold in escrow such amount until the 
     final resolution of any appeal regarding the use of the 
     funds.
       (j) Compliance With Authorized Uses.--If the Secretary 
     determines that any expenditure made by an OCS Production 
     State or an OCS political subdivision is not consistent with 
     the uses authorized in subsection (h), the Secretary shall 
     not disburse any further amounts under this section to that 
     OCS Production State or OCS political subdivision until the 
     amounts used for the inconsistent expenditure have been 
     repaid or obligated for authorized uses.
       (k) Rulemaking.--The Secretary may promulgate such rules 
     and regulations as may be necessary to carry out the purposes 
     of this section, including rules and regulations setting 
     forth an appropriate process for appeals.
       (l) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated $450,000,000 for each of the 
     fiscal years 2003 through 2008 to carry out the purposes of 
     this section.

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