Congressional Record, Volume 148 Issue 22 (Tuesday, March 5, 2002)

[Congressional Record Volume 148, Number 22 (Tuesday, March 5, 2002)]
[Senate]
[Pages S1441-S1527]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

NATIONAL LABORATORIES PARTNERSHIP IMPROVEMENT ACT OF 2001--Continued

The PRESIDING OFFICER. The Senator from New Mexico.

Amendment No. 2917, as Further Modified

Mr. BINGAMAN. Madam President, I ask unanimous consent that the
amendment before the Senate be modified with the language that is
already at the desk.
The PRESIDING OFFICER. Without objection, the amendment is so
modified.
The amendment (No. 2917), as further 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.
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.

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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 vehicles.
Sec. 819. Renewable content of motor vehicle fuel.

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.

Subtitle D--Federal Reformulated Fuels

Sec. 831. Short title.
Sec. 832. Leaking underground storage tanks.
Sec. 833. Authority for water quality protection from fuels.
Sec. 834. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 835. Public health and environmental impacts of fuels and fuel
additives.
Sec. 836. Analyses of motor vehicle fuel changes.
Sec. 837. Additional opt-in areas under reformulated gasoline program.
Sec. 838. Federal enforcement of state fuels requirements.
Sec. 839. Fuel system requirements hamonization study.

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.
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.

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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 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,

[[Page S1444]]

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 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

[[Page S1445]]

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 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

[[Page S1446]]

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
(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

[[Page S1447]]

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.''.
(b) 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:
``(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--

[[Page S1448]]

``(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.
(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 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,

[[Page S1449]]

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;
``(g) 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.
``(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

[[Page S1450]]

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 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

[[Page S1451]]

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 an 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 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

[[Page S1452]]

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)),
(2) section 10(e) of the Federal Power Act (16 U.S.C.
803(e)),
(3) section 10(j) of the Federal Power Act (16 U.S.C.
803(j)),
(4) section 18 of the Federal Power Act (16 U.S.C. 811), or
(5) 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.
``(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.

[[Page S1453]]

``(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 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;

[[Page S1454]]

(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;
(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
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

[[Page S1455]]

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 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
``Year:
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 the program can be carried out at existing
operating facilities.

DIVISION--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--

[[Page S1456]]

(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 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.

[[Page S1457]]

(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 to--
(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 705.
(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 under 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
(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

[[Page S1458]]

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.--'';
(2) by striking ``(except passenger automobiles)'' in
subsection (a) and inserting ``(except passenger automobiles
and light trucks)''; and
(3) by striking subsection (b) and inserting the following:
``(b) Standards for Passenger Automobiles and Light
Trucks.--
``(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 2007 in order to achieve a combined average
fuel economy standard for passenger automobiles and light
trucks for model year 2015 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 2007 and ending with model year 2015;
``(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 2012; 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 2012; 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:

[[Page S1459]]

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
2012.--Unless the default standards under paragraph (4) are
in effect, for model years after model year 2012, 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.
(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:

[[Page S1460]]

``(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.
``(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;
(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

[[Page S1461]]

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.
``(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--
(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

[[Page S1462]]

(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.''.

SEC. 819. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

(a) In General.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) by redesignating subsection (o) as subsection (q); and
(2) by inserting after subsection (n) the following:
``(o) Renewable Fuel Program.--
``(1) Definitions.--In this section:
``(A) Cellulosic biomass ethanol.--The term `cellulosic
biomass ethanol' means ethanol derived from any
lignocellulosic or hemicellulosic matter that is available on
a renewable or recurring basis, including--
``(i) dedicated energy crops and trees;
``(ii) wood and wood residues;
``(iii) plants;
``(iv) grasses;
``(v) agricultural commodities and residues;
``(vi) fibers;
``(vii) animal wastes and other waste materials; and
``(viii) municipal solid waste.
``(B) Renewable fuel.--
``(i) In general.--The term `renewable fuel' means motor
vehicle fuel that--

``(I)(aa) is produced from grain, starch, oilseeds, or
other biomass; or
``(bb) is natural gas produced from a biogas source,
including a landfill, sewage waste treatment plant, feedlot,
or other place where decaying organic material is found; and
``(II) is used to replace or reduce the quantity of fossil
fuel present in a fuel mixture used to operate a motor
vehicle.

``(ii) Inclusion.--The term `renewable fuel' includes
cellulosic biomass ethanol and biodiesel (as defined in
section 312(f) of the Energy Policy Act of 1992 (42 U.S.C.
13220(f)).
``(C) Small refinery.--The term `small refinery' means a
refinery for which average aggregate daily crude oil
throughput for the calendar year (as determined by dividing
the aggregate throughput for the calendar year by the number
of days in the calendar year) does not exceed 75,000 barrels.
``(2) Renewable fuel program.--
``(A) In general.--Not later than one year from enactment
of this provision, the Administrator shall promulgate
regulations ensuring that gasoline sold or dispensed to
consumers in the United States, on an annual average basis,
contains the applicable volume of renewable fuel as specified
in subparagraph (B). Regardless of the date of promulgation,
such regulations shall contain compliance provisions for
refiners, blenders, distributors and importers, as
appropriate, to ensure that the requirements of this section
are met, but shall not restrict where renewables can be used,
or impose any per-gallon obligation for the use of
renewables. If the Administrator does not promulgate such
regulations, the applicable percentage, on a volume
percentage of gasoline basis, shall be 1.62 in 2004.
``(B) Applicable volume.--
(i) Calendar years 2004 through 2012.--For the purpose of
subparagraph (A), the applicable volume for any of calendar
years 2004 through 2012 shall be determined in accordance
with the following table:

Applicable volume of renewable fuel

``Calendar year: (In billions of gallons)
2004............................................................2.3

2005............................................................2.6

2006............................................................2.9

2007............................................................3.2

2008............................................................3.5

2009............................................................3.9

2010............................................................4.3

2011............................................................4.7

2012...........................................................5.0.
``(ii) Calendar year 2013 and thereafter.--For the purpose
of subparagraph (A), the applicable volume for calendar year
2013 and each calendar year thereafter shall be equal to the
product obtained by multiplying--

``(I) the number of gallons of gasoline that the
Administrator estimates will be sold or introduced into
commerce in the calendar year; and
``(II) the ratio that--

``(aa) 5.0 billion gallons of renewable fuels; bears to
``(bb) the number of gallons of gasoline sold or introduced
into commerce in calendar year 2012.
``(3) Applicable percentages.--Not later than October 31 of
each calendar year, through 2011, the Administrator of the
Energy Information Administration shall provide the
Administrator an estimate of the volumes of gasoline sales in
the United States for the coming calendar year. Based on such
estimates, the Administrator shall by November 30 of each
calendar year, through 2011, determine and publish in the
Federal Register, the renewable fuel obligation, on a volume
percentage of gasoline basis, applicable to refiners,
blenders, distributors and importers, as appropriate, for the
coming calendar year, to ensure that the requirements of
paragraph (2) are met. For each calendar year, the
Administrator shall establish a single applicable percentage
that applies to all parties, and make provision to avoid
redundant obligations. In determining the applicable
percentages, the Administrator shall make adjustments to
account for the use of renewable fuels by exempt small
refiners during the previous year.
``(4) Cellulosic biomass ethanol.--For the purpose of
paragraph (2), 1 gallon of cellulosic biomass ethanol shall
be considered to be the equivalent of 1.5 gallon of renewable
fuel.
``(5) Credit program.--

[[Page S1463]]

``(A) In general.--The regulations promulgated to carry out
this subsection shall provide for the generation of an
appropriate amount of credits by any person that refines,
blends, distributes or imports gasoline that contains a
quantity of renewable fuel that is greater than the quantity
required under paragraph (2). Such regulations shall provide
for the generation of an appropriate amount of credits for
biodiesel fuel. If a small refinery notifies the
Administrator that it waives the exemption provided by this
Act, the regulations shall provide for the generation of
credits by the small refinery beginning in the year following
such notification.
``(B) Use of credits.--A person that generates credits
under subparagraph (A) may use the credits, or transfer all
or a portion of the credits to another person, for the
purpose of complying with paragraph (2).
``(C) Life of credits.--A credit generated under this
paragraph shall be valid to show compliance:
(i) in the calendar year in which the credit was generated
or the next calendar year, or
(ii) in the calendar year in which the credit was generated
or next two consecutive calendar years if the Administrator
promulgates regulations under paragraph (6).
``(D) Inability to purchase sufficient credits.--The
regulations promulgated to carry out this subsection shall
include provisions allowing any person that is unable to
generate or purchase sufficient credits to meet the
requirements under paragraph (2) to carry forward a
renewables deficit provided that, in the calendar year
following the year in which the renewables deficit is
created, such person shall achieve compliance with the
renewables requirement under paragraph (2), and shall
generate or purchase additional renewables credits to offset
the renewables deficit of the previous year.
``(6) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of calendar years 2004 through 2012,
the Administrator of the Energy Information Administration,
shall conduct a study of renewable fuels blending to
determine whether there are excessive seasonal variations in
the use of renewable fuels.
``(B) Regulation of excessive seasonal variations.--If, for
any calendar year, the Administrator of the Energy
Information Administration, based on the study under
subparagraph (A), makes the determinations specified in
subparagraph (C), the Administrator shall promulgate
regulations to ensure that 35 percent or more of the quantity
of renewable fuels necessary to meet the requirement of
paragraph (2) is used during each of the periods specified in
subparagraph (D) of each subsequent calendar year.
``(C) Determinations.--The determinations referred to in
subparagraph (B) are that--
``(i) less than 35 percent of the quantity of renewable
fuels necessary to meet the requirement of paragraph (2) has
been used during 1 of the periods specified in subparagraph
(D) of the calendar year; and
``(ii) a pattern of excessive seasonal variation described
in clause (i) will continue in subsequent calendar years.
``(D) Periods.--The two periods referred to in this
paragraph are--
``(i) April through September; and
``(ii) January through March and October through December.
``(E) Exclusions.--Renewable fuels blended or consumed in
2004 in a state which has received a waiver under section
209(b) shall not be included in the study in subparagraph
(A).
``(7) Waivers.--
``(A) In general.--The Administrator, in consultation with
the Secretary of Agriculture and the Secretary of Energy, may
waive the requirement of paragraph (2) in whole or in part on
petition by 1 or more States by reducing the national
quantity of renewable fuel required under this subsection--
``(i) based on a determination by the Administrator, after
public notice and opportunity for comment, that
implementation of the requirement would severely harm the
economy or environment of a State, a region, or the United
States; or
``(ii) based on a determination by the Administrator, after
public notice and opportunity for comment, that there is an
inadequate domestic supply or distribution capacity to meet
the requirement.
``(B) Petitions for waivers.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy--
``(i) shall approve or deny a State petition for a waiver
of the requirement of paragraph (2) within 180 days after the
date on which the petition is received; but
``(ii) may extend that period for up to 60 additional days
to provide for public notice and opportunity for comment and
for consideration of the comments submitted.
``(C) Termination of waivers.--A waiver granted under
subparagraph (A) shall terminate after 1 year, but may be
renewed by the Administrator after consultation with the
Secretary of Agriculture and the Secretary of Energy.
``(8) Study and waiver for initial year of program.--Not
later than 180 days from enactment, the Secretary of Energy
shall complete for the Administrator a study assessing
whether the renewable fuels requirement under paragraph (2)
will likely result in significant adverse consumer impacts in
2004, on a national, regional or state basis. Such study
shall evaluate renewable fuel supplies and prices, blendstock
supplies, and supply and distribution system capabilities.
Based on such study, the Secretary shall make specific
recommendations to the Administrator regarding waiver of the
requirements of paragraph (2), in whole or in part, to avoid
any such adverse impacts. Within 270 days from enactment, the
Administrator shall, consistent with the recommendations of
the Secretary waive, in whole or in part, the renewable fuels
requirement under paragraph (2) by reducing the national
quantity of renewable fuel required under this subsection in
2004. This provision shall not be interpreted as limiting the
Administrator's authority to waive the requirements of
paragraph (2) in whole, or in part, under paragraph (7),
pertaining to waivers.
``(9) Small refineries.--
``(A) In general.--The requirement of paragraph (2) shall
not apply to small refineries until January 1, 2008. Not
later than December 31, 2006, the Secretary of Energy shall
complete for the Administrator a study to determine whether
the requirement of paragraph (2) would impose a
disproportionate economic hardship on small refineries. For
any small refinery that the Secretary of Energy determines
would experience a disproportionate economic hardship, the
Administrator shall extend the small refinery exemption for
such small refinery for no less than two additional years.
``(B) Economic hardship.--
``(i) A small refinery may at any time petition the
Administrator for an extension of the exemption from the
requirement of paragraph (2) for the reason of
disproportionate economic hardship. In evaluating a hardship
petition, the Administrator, in consultation with the
Secretary of Energy, shall consider the findings of the study
in addition to other economic factors.
``(ii) Deadline for action on petitions.--The Administrator
shall act on any petition submitted by a small refinery for a
hardship exemption not later than 90 days after the receipt
of the petition.
``(C) Credit program.--If a small refinery notifies the
Administrator that it waives the exemption provided by this
Act, the regulations shall provide for the generation of
credits by the small refinery beginning in the year following
such notification.
``(D) Opt-in for small refiners.--A small refinery shall be
subject to the requirements of this section if it notifies
the Administrator that it waives the exemption under
subparagraph (A).
``(10) Study.--Not later than 180 days after the date of
enactment, the Secretary of Energy shall complete for the
Administrator a study assessing whether the renewable fuels
requirement under paragraph (2) will likely result in
significant adverse consumer impacts in 2004, on a national,
regional or state basis. Such study shall evaluate renewable
fuel supplies and prices, blendstock supplies, and supply and
distribution system capabilities. Based on such study, the
Secretary shall make specific recommendations to the
Administrator regarding waiver of the requirements of
paragraph (2), in whole or in part, to avoid any such adverse
impacts. Within 270 days after the date of enactment, the
Administrator shall, consistent with the recommendations of
the Secretary waive, in whole or in part, the renewable fuels
requirement under paragraph (2) by reducing the national
quantity of renewable fuel required under this subsection in
2004. This provision shall not be interpreted as limiting the
Administrator's authority to waive the requirements of
paragraph (2) in whole, or in part, under paragraph (7),
pertaining to waivers.''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean
Air Act (42 U.S.C. 7545(d)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``or (n)'' each
place it appears and inserting ``(n) or (o)''; and
(B) in the second sentence, by striking ``or (m)'' and
inserting ``(m), or (o)''; and
(2) in the first sentence of paragraph (2), by striking
``and (n)'' each place it appears and inserting ``(n), and
(o)''.
(c) Exclusion From Ethanol Waiver.--Section 211(h) of the
Clean Air Act (42 U.S.C. 7545(h)) is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5) Exclusion from ethanol waiver.--
``(A) Promulgation of regulations.--Upon notification,
accompanied by supporting documentation, from the Governor of
a State that the Reid vapor pressure limitation established
by paragraph (4) will increase emissions that contribute to
air pollution in any area in the State, the Administrator
shall, by regulation, apply, in lieu of the Reid vapor
pressure limitation established by paragraph (4), the Reid
vapor pressure limitation established by paragraph (1) to all
fuel blends containing gasoline and 10 percent denatured
anhydrous ethanol that are sold, offered for sale, dispensed,
supplied, offered for supply, transported or introduced into
commerce in the area during the high ozone season.
``(B) Deadline for promulgation.--The Administrator shall
promulgate regulations under subparagraph (A) not later than
90 days after the date of receipt of a notification from a
Governor under that subparagraph.
``(C) Effective date.--
``(i) In general.--With respect to an area in a State for
which the Governor submits a notification under subparagraph
(A), the regulations under that subparagraph shall take
effect on the later of--

[[Page S1464]]

``(I) the first day of the first high ozone season for the
area that begins after the date of receipt of the
notification; or
``(II) 1 year after the date of receipt of the
notification.

``(ii) Extension of effective date based on determination
of insufficient supply.--

``(I) In general.--If, after receipt of a notification with
respect to an area from a Governor of a State under
subparagraph (A), the Administrator determines, on the
Administrator's own motion or on petition of any person and
after consultation with the Secretary of Energy, that the
promulgation of regulations described in subparagraph (A)
would result in an insufficient supply of gasoline in the
State, the Administrator, by regulation--

``(aa) shall extend the effective date of the regulations
under clause (i) with respect to the area for not more than 1
year; and
``(bb) may renew the extension under item (aa) for 2
additional periods, each of which shall not exceed 1 year.

``(II) Deadline for action on petitions.--The Administrator
shall act on any petition submitted under subclause (I) not
later than 180 days after the date of receipt of the
petition.''.

(d) Survey of Renewable Fuel Market.--
(1) Survey and report.--Not later than December 1, 2005,
and annually thereafter, the Administrator shall--
(A) conduct, with respect to each conventional gasoline use
area and each reformulated gasoline use area in each State, a
survey to determine the market shares of--
(i) conventional gasoline containing ethanol;
(ii) reformulated gasoline containing ethanol;
(iii) conventional gasoline containing renewable fuel; and
(iv) reformulated gasoline containing renewable fuel; and
(B) submit to Congress, and make publicly available, a
report on the results of the survey under subparagraph (A).
(2) Recordkeeping and reporting requirements.--The
Administrator may require any refiner, blender, importer, or
distributor to keep such records and make such reports as are
necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator shall rely, to the extent
practicable, on existing reporting and recordkeeping
requirements to avoid duplicative requirements.
(3) Applicable law.--Activities carried out under this
subsection shall be conducted in a manner designed to protect
confidentiality of individual responses.
(e) Renewable Fuels Safe Harbor.--
(1) In general.--Notwithstanding any other provision of
federal or state law, no renewable fuel, as defined by this
Act, used or intended to be used as a motor vehicle fuel, nor
any motor vehicle fuel containing such renewable fuel, shall
be deemed defective in design or manufacture by virtue of the
fact that it is, or contains, such a renewable fuel, if it
does not violate a control or prohibition imposed by the
Administrator under section 211 of the Clean Air Act, as
amended by this Act, and the manufacturer is in compliance
with all requests for information under section 211(b) of the
Clean Air Act, as amended by this Act. In the event that the
safe harbor under this section does not apply, the existence
of a design defect or manufacturing defect shall be
determined under otherwise applicable law.
(2) Effective date.--This section shall be effective as of
the date of enactment and shall apply with respect to all
claims filed on or after that date.

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--
(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.

[[Page S1465]]

(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.''.

Subtitle D--Federal Reformulated Fuels

SEC. 831. SHORT TITLE.

This subtitle may be cited as the ``Federal Reformulated
Fuels Act of 2002''.

SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.

(a) Use of Lust Funds for Remediation of Contamination From
Ether Fuel Additives.--Section 9003(h) of the Solid Waste
Disposal Act (42 U.S.C. 6991b(h)) is amended--
(1) in paragraph (7)(A)--
(A) by striking ``paragraphs (1) and (2) of this
subsection'' and inserting ``paragraphs (1), (2), and (12)'';
and
(B) by inserting ``and section 9010'' before ``if''; and
(2) by adding at the end the following:
``(12) Remediation of contamination from ether fuel
additives.--
``(A) In general.--The Administrator and the States may use
funds made available under section 9013(1) to carry out
corrective actions with respect to a release of methyl
tertiary butyl ether or other ether fuel additive that
presents a threat to human health, welfare, or the
environment.
``(B) Applicable authority.--Subparagraph (A) shall be
carried out--
``(i) in accordance with paragraph (2), except that a
release with respect to which a corrective action is carried
out under subparagraph (A) shall not be required to be from
an underground storage tank; and
``(ii) in the case of a State, in accordance with a
cooperative agreement entered into by the Administrator and
the State under paragraph (7).''.
(b) Release Prevention and Compliance.--Subtitle I of the
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended
by striking section 9010 and inserting the following:

``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

``Funds made available under section 9013(2) from the
Leaking Underground Storage Tank Trust Fund may be used for
conducting inspections, or for issuing orders or bringing
actions under this subtitle--
``(1) by a State (pursuant to section 9003(h)(7)) acting
under--
``(A) a program approved under section 9004; or
``(B) State requirements regulating underground storage
tanks that are similar or identical to this subtitle, as
determined by the Administrator; and
``(2) by the Administrator, acting under this subtitle or a
State program approved under section 9004.

``SEC. 9011. BEDROCK BIOREMEDIATION.

``The Administrator shall establish, at an institution of
higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) with established
expertise in bioremediation of contaminated bedrock aquifers,
a resource center--
``(1) to conduct research concerning bioremediation of
methyl tertiary butyl ether in contaminated underground
aquifers, including contaminated bedrock; and
``(2) to provide for States a technical assistance
clearinghouse for information concerning innovative
technologies for bioremediation described in paragraph (1).

``SEC. 9012. SOIL REMEDIATION.

``The Administrator may establish a program to conduct
research concerning remediation of methyl tertiary butyl
ether contamination of soil, including granitic or volcanic
soil.

``SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.

``In addition to amounts made available under section
2007(f), there are authorized to be appropriated from the
Leaking Underground Storage Tank Trust Fund, notwithstanding
section 9508(c)(1) of the Internal Revenue Code of 1986--
``(1) to carry out section 9003(h)(12), $200,000,000 for
fiscal year 2003, to remain available until expended;
``(2) to carry out section 9010--
``(A) $50,000,000 for fiscal year 2003; and
``(B) $30,000,000 for each of fiscal years 2004 through
2008;
``(3) to carry out section 9011--
``(A) $500,000 for fiscal year 2003; and
``(B) $300,000 for each of fiscal years 2004 through 2008;
and
``(4) to carry out section 9012--
``(A) $100,000 for fiscal year 2003; and
``(B) $50,000 for each of fiscal years 2004 through 2008.
(c) Technical Amendments.--
(1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C.
prec. 6901) is amended by striking the item relating to
section 9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Bedrock bioremediation.
``Sec. 9012. Soil remediation.
``Sec. 9013. Authorization of appropriations.''.
(2) Section 9001(3)(A) of the Solid Waste Disposal Act (42
U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and
inserting ``substances''.
(3) Section 9003(f)(1) of the Solid Waste Disposal Act (42
U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c)
and (d) of this section'' and inserting ``subsections (c) and
(d)''.
(4) Section 9004(a) of the Solid Waste Disposal Act (42
U.S.C. 6991c(a)) is amended in the second sentence by
striking ``referred to'' and all that follows and inserting
``referred to in subparagraph (A) or (B), or both, of section
9001(2).''.
(5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C.
6991d) is amended--
(A) in subsection (a), by striking ``study taking'' and
inserting ``study, taking'';
(B) in subsection (b)(1), by striking ``relevent'' and
inserting ``relevant''; and
(C) in subsection (b)(4), by striking ``Evironmental'' and
inserting ``Environmental''.

SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.

(a) Findings.--Congress finds that--
(1) since 1979, methyl tertiary butyl ether (referred to in
this section as ``MTBE'') has been used nationwide at low
levels in gasoline to replace lead as an octane booster or
anti-knocking agent;
(2) Public Law 101-549 (commonly known as the ``Clean Air
Act Amendments of 1990'') (42 U.S.C. 7401 et seq.)
established a fuel oxygenate standard under which
reformulated gasoline must contain at least 2 percent oxygen
by weight;
(3) at the time of the adoption of the fuel oxygen
standard, Congress was aware that significant use of MTBE
could result from the adoption of that standard, and that the
use of MTBE would likely be important to the cost-effective
implementation of that program;
(4) Congress is aware that gasoline and its component
additives have leaked from storage tanks, with consequences
for water quality;
(5) the fuel industry responded to the fuel oxygenate
standard established by Public Law 101-549 by making
substantial investments in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing gasoline to the
marketplace;
(6) when leaked or spilled into the environment, MTBE may
cause serious problems of drinking water quality;
(7) in recent years, MTBE has been detected in water
sources throughout the United States;
(8) MTBE can be detected by smell and taste at low
concentrations;
(9) while small quantities of MTBE can render water
supplies unpalatable, the precise human health effects of
MTBE consumption at low levels are yet unknown;
(10) in the report entitled ``Achieving Clean Air and Clean
Water: The Report of the Blue Ribbon Panel on Oxygenates in
Gasoline'' and dated September 1999, Congress was urged--
(A) to eliminate the fuel oxygenate standard;
(B) to greatly reduce use of MTBE; and
(C) to maintain the environmental performance of
reformulated gasoline;
(11) Congress has--
(A) reconsidered the relative value of MTBE in gasoline;
and
(B) decided to eliminate use of MTBE as a fuel additive;
(12) the timeline for elimination of use of MTBE as a fuel
additive must be established in a manner that achieves an
appropriate balance among the goals of--
(A) environmental protection;
(B) adequate energy supply; and
(C) reasonable fuel prices; and
(13) it is appropriate for Congress to provide some limited
transition assistance--
(A) to merchant producers of MTBE who produced MTBE in
response to a market created by the oxygenate requirement
contained in the Clean Air Act; and
(B) for the purpose of mitigating any fuel supply problems
that may result from elimination of a widely-used fuel
additive.

[[Page S1466]]

(b) Purposes.--The purposes of this section are--
(1) to eliminate use of MTBE as a fuel oxygenate; and
(2) to provide assistance to merchant producers of MTBE in
making the transition from producing MTBE to producing other
fuel additives.
(c) Authority for Water Quality Protection From Fuels.--
Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is
amended--
(1) in paragraph (1)(A)--
(A) by inserting ``fuel or fuel additive or'' after
``Administrator any''; and
(B) by striking ``air pollution which'' and inserting ``air
pollution, or water pollution, that'';
(2) in paragraph (4)(B), by inserting ``or water quality
protection,'' after ``emission control,''; and
(3) by adding at the end the following:
``(5) Prohibition on use of mtbe.--
``(A) In general.--Subject to subparagraph (E), not later
than 4 years after the date of enactment of this paragraph,
the use of methyl tertiary butyl ether in motor vehicle fuel
in any State other than a State described in subparagraph (C)
is prohibited.
``(B) Regulations.--The Administrator shall promulgate
regulations to effect the prohibition in subparagraph (A).
``(C) States that authorize use.--A State described in this
subparagraph is a State that submits to the Administrator a
notice that the State authorizes use of methyl tertiary butyl
ether in motor vehicle fuel sold or used in the State.
``(D) Publication of notice.--The Administrator shall
publish in the Federal Register each notice submitted by a
State under subparagraph (B).
``(E) Trace quantities.--In carrying out subparagraph (A),
the Administrator may allow trace quantities of methyl
tertiary butyl ether, not to exceed 0.5 percent by volume, to
be present in motor vehicle fuel in cases that the
Administrator determines to be appropriate.
``(6) MTBE merchant producer conversion assistance.--
``(A) In general.--
``(i) Grants.--The Secretary of Energy, in consultation
with the Administrator, may make grants to merchant producers
of methyl tertiary butyl ether in the United States to assist
the producers in the conversion of eligible production
facilities described in subparagraph (C) to the production of
iso-octane and alkylates.
``(ii) Determination.--The Administrator, in consultation
with the Secretary of Energy, may determine that transition
assistance for the production of iso-octane and alkylates is
inconsistent with the provisions of subparagraph (B) and, on
that basis, may deny applications for grants authorized by
this provision.
``(B) The Secretary of Energy, in consultation with the
Administrator, may also further make grants to merchant
producers of MTBE in the United States to assist the
producers in the conversion of eligible production facilities
described in subparagraph (C) to the production of such other
fuel additives that, consistent with 211(c)--
``(i) unless the Administrator determines that such fuel
additives may reasonably be anticipated to endanger public
health or the environment;
``(ii) have been registered and have been tested or are
being tested in accordance with the requirements of this
section; and
``(iii) will contribute to replacing gasoline volumes lost
as a result of paragraph (5).
``(C) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
paragraph if the production facility--
``(i) is located in the United States; and
``(ii) produced methyl tertiary butyl ether for consumption
in nonattainment areas during the period--

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

``(D) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $250,000,000
for each of fiscal years 2003 through 2005.''.
(d) No Effect on Law Concerning State Authority.--The
amendments made by subsection (c) have no effect on the law
in effect on the day before the date of enactment of this Act
regarding the authority of States to limit the use of methyl
tertiary butyl ether in motor vehicle fuel.

SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR
REFORMULATED GASOLINE.

(a) Elimination.--
(1) In general.--Section 211(k) of the Clean Air Act (42
U.S.C. 7545(k)) is amended--
(A) in paragraph (2)--
(i) in the second sentence of subparagraph (A), by striking
``(including the oxygen content requirement contained in
subparagraph (B))'';
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(B) in paragraph (3)(A), by striking clause (v);
(C) in paragraph (7)--
(i) in subparagraph (A)--

(I) by striking clause (i); and
(II) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively; and

(ii) in subparagraph (C)--

(I) by striking clause (ii); and
(II) by redesignating clause (iii) as clause (ii); and

(2) Effective date.--The amendments made by paragraph (1)
take effect 270 days after the date of enactment of this Act,
except that such amendments shall take effect upon enactment
in any State that has received a waiver under section 209(b)
of the Clean Air Act.
(b) Maintenance of Toxic Air Pollutant Emission
Reductions.--Section 211(k)(1) of the Clean Air Act (42
U.S.C. 7545(k)(1)) is amended--
(1) by striking ``Within 1 year after the enactment of the
Clean Air Act Amendments of 1990,'' and inserting the
following:
``(A) In general.--Not later than November 15, 1991,''; and
(2) by adding at the end the following:
``(B) Maintenance of toxic air pollutant emissions
reductions from reformulated gasoline.--
``(i) Definitions.--In this subparagraph:

``(I) PADD.--The term `PADD' means a Petroleum
Administration for Defense District.

``(ii) Regulations regarding emissions of toxic air
pollutants.--Not later than 270 days after the date of
enactment of this subparagraph, the Administrator shall
establish, for each refinery or importer (other than a
refinery or importer in a State that has received a waiver
under section 209(b) with regard to gasoline produced for use
in that state), standards for toxic air pollutants from use
of the reformulated gasoline produced or distributed by the
refinery or importer that maintain the reduction of the
average annual aggregate emissions of toxic air pollutants
for reformulated gasoline produced or distributed by the
refinery or importer during calendar years 1999 and 2000,
determined on the basis of data collected by the
Administrator with respect to the refinery or importer.
(iii) Standards applicable to specific refineries or
importers.--

``(I) Applicability of standards.--For any calendar year,
the standards applicable to a refinery or importer under
clause (ii) shall apply to the quantity of gasoline produced
or distributed by the refinery or importer in the calendar
year only to the extent that the quantity is less than or
equal to the average annual quantity of reformulated gasoline
produced or distributed by the refinery or importer during
calendar years 1999 and 2000.
``(II) Applicability of other standards.--For any calendar
year, the quantity of gasoline produced or distributed by a
refinery or importer that is in excess of the quantity
subject to subclause (I) shall be subject to standards for
toxic air pollutants promulgated under subparagraph (A) and
paragraph (3)(B).

``(iv) Credit program.--The Administrator shall provide for
the granting and use of credits for emissions of toxic air
pollutants in the same manner as provided in paragraph (7).
``(v) Regional protection of toxics reduction baselines.--

``(I) In general.--Not later than 60 days after the date of
enactment of this subparagraph, and not later than April 1 of
each calendar year that begins after that date of enactment,
the Administrator shall publish in the Federal Register a
report that specifies, with respect to the previous calendar
year--

``(aa) the quantity of reformulated gasoline produced that
is in excess of the average annual quantity of reformulated
gasoline produced in 1999 and 2000; and
``(bb) the reduction of the average annual aggregate
emissions of toxic air pollutants in each PADD, based on
retail survey data or data from other appropriate sources.

``(II) Effect of failure to maintain aggregate toxics
reductions.--If, in any calendar year, the reduction of the
average annual aggregate emissions of toxic air pollutants in
a PADD fails to meet or exceed the reduction of the average
annual aggregate emissions of toxic air pollutants in the
PADD in calendar years 1999 and 2000, the Administrator, not
later than 90 days after the date of publication of the
report for the calendar year under subclause (I), shall--

``(aa) identify, to the maximum extent practicable, the
reasons for the failure, including the sources, volumes, and
characteristics of reformulated gasoline that contributed to
the failure; and
``(bb) promulgate revisions to the regulations promulgated
under clause (ii), to take effect not earlier than 180 days
but not later than 270 days after the date of promulgation,
to provide that, notwithstanding clause (iii)(II), all
reformulated gasoline produced or distributed at each
refinery or importer shall meet the standards applicable
under clause (iii) not later than April 1 of the year
following the report in subclause (II) and for subsequent
years.
``(vi) Regulations to control hazardous air pollutants from
motor vehicles and motor vehicle fuels.--Not later than July
1, 2004, the Administrator shall promulgate final regulations
to control hazardous air pollutants from motor vehicles and
motor vehicle fuels, as provided for in section 80.1045 of
title 40, Code of Federal Regulations (as in effect on the
date of enactment of this subparagraph).''.
(c) Consolidation in Reformulated Gasoline Regulations.--
Not later than 180 days after the date of enactment of this
Act, the Administrator shall revise the reformulated gasoline
regulations under subpart D of part 80 of title 40, Code of
Federal Regulations, to

[[Page S1467]]

consolidate the regulations applicable to VOC-Control Regions
1 and 2 under section 80.41 of that title by eliminating the
less stringent requirements applicable to gasoline designated
for VOC-Control Region 2 and instead applying the more
stringent requirements applicable to gasoline designated for
VOC-Control Region 1.
(d) Savings Clause.--Nothing in this section is intended to
affect or prejudice any legal claims or actions with respect
to regulations promulgated by the Administrator prior to
enactment of this Act regarding emissions of toxic air
pollutants from motor vehicles.
(e) Determination Regarding a State Petition.--Section
211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended by
inserting after paragraph (10) the following:
``(11) Determination regarding a state petition.--
``(A) In general.--Notwithstanding any other provision of
this section, not less than thirty days after enactment of
this paragraph the Administrator must determine the adequacy
of any petition received from a Governor of a State to exempt
gasoline sold in that State from the requirements of
(k)(2)(B).
``(B) If the determination in (A) is not made within thirty
days of enactment of this paragraph, the petition shall be
deemed approved.''.

SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS
AND FUEL ADDITIVES.

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

``(I) ethyl tertiary butyl ether;
``(II) tertiary amyl methyl ether;
``(III) di-isopropyl ether;
``(IV) tertiary butyl alcohol;
``(V) other ethers and heavy alcohols, as determined by
then Administrator;
``(VI) ethanol;
``(VII) iso-octane; and
``(VIII) alkylates; and

``(ii) conduct a study on the effects on public health, air
quality, and water resources of the adjustment for ethanol-
blended reformulated gasoline to the VOC performance
requirements otherwise applicable under sections 211(k)(1)
and 211(k)(3) of the Clean Air Act.

``(iii) submit to the Committee on Environment and Public
Works of the Senate and the Committee on Energy and Commerce
of the House of Representatives a report describing the
results of these studies.

``(B) Contracts for study.--In carrying out this paragraph,
the Administrator may enter into 1 or more contracts with
nongovernmental entities including but not limited to
National Energy Laboratories and institutions of higher
education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)).''.

SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
amended by section 819(a)) is amended by inserting after
subsection (o) the following:
``(p) Analyses of Motor Vehicle Fuel Changes and Emissions
Model.--
``(1) Anti-backsliding analysis.--
``(A) Draft analysis.--Not later than 4 years after the
date of enactment of this paragraph, the Administrator shall
publish for public comment a draft analysis of the changes in
emissions of air pollutants and air quality due to the use of
motor vehicle fuel and fuel additives resulting from
implementation of the amendments made by the Federal
Reformulated Fuels Act of 2002.
``(B) Final analysis.--After providing a reasonable
opportunity for comment but not later than 5 years after the
date of enactment of this paragraph, the Administrator shall
publish the analysis in final form.
``(2) Emissions model.--For the purposes of this
subsection, as soon as the necessary data are available, the
Administrator shall develop and finalize an emissions model
that reasonably reflects the effects of gasoline
characteristics or components on emissions from vehicles in
the motor vehicle fleet during calendar year 2005.''.

SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE
PROGRAM.

Section 211(k)(6) of the Clean Air Act (42 U.S.C.
7545(k)(6)) is amended--
(1) by striking ``(6) Opt-in areas.--(A) Upon'' and
inserting the following:
``(6) Opt-in areas.--
``(A) Classified areas.--
``(i) In general.--Upon'';
(2) in subparagraph (B), by striking ``(B) If'' and
inserting the following:
``(ii) Effect of insufficient domestic capacity to produce
reformulated gasoline.--If'';
(3) in subparagraph (A)(ii) (as redesignated by paragraph
(2))--
(A) in the first sentence, by striking ``subparagraph (A)''
and inserting ``clause (i)''; and
(B) in the second sentence, by striking ``this paragraph''
and inserting ``this subparagraph''; and
(4) by adding at the end the following:
``(B) Ozone transport region.--
``(i) Application of prohibition.--

``(I) In general.--In addition to the provisions of
subparagraph (A), upon the application of the Governor of a
State in the ozone transport region established by section
184(a), the Administrator, not later than 180 days after the
date of receipt of the application, shall apply the
prohibition specified in paragraph (5) to any area in the
State (other than an area classified as a marginal, moderate,
serious, or severe ozone nonattainment area under subpart 2
of part D of title I) unless the Administrator determines
under clause (iii) that there is insufficient capacity to
supply reformulated gasoline.
``(II) Publication of application.--As soon as practicable
after the date of receipt of an application under subclause
(I), the Administrator shall publish the application in the
Federal Register.

``(ii) Period of applicability.--Under clause (i), the
prohibition specified in paragraph (5) shall apply in a
State--

``(I) commencing as soon as practicable but not later than
2 years after the date of approval by the Administrator of
the application of the Governor of the State; and
``(II) ending not earlier than 4 years after the
commencement date determined under subclause (I).

``(iii) Extension of commencement date based on
insufficient capacity.--

``(I) In general.--If, after receipt of an application from
a Governor of a State under clause (i), the Administrator
determines, on the Administrator's own motion or on petition
of any person, after consultation with the Secretary of
Energy, that there is insufficient capacity to supply
reformulated gasoline, the Administrator, by regulation--

``(aa) shall extend the commencement date with respect to the
State under clause (ii)(I) for not more than 1 year; and
``(bb) may renew the extension under item (aa) for 2
additional periods, each of which shall not exceed 1 year.

``(II) Deadline for action on petitions.--The Administrator
shall act on any petition submitted under subclause (I) not
later than 180 days after the date of receipt of the
petition.''.

SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)) is amended--
(1) by striking ``(C) A State'' and inserting the
following:
``(C) Authority of state to control fuels and fuel
additives for reasons of necessity.--
``(i) In general.--A State''; and
(2) by adding at the end the following:
``(ii) Enforcement by the administrator.--In any case in
which a State prescribes and enforces a control or
prohibition under clause (i), the Administrator, at the
request of the State, shall enforce the control or
prohibition as if the control or prohibition had been adopted
under the other provisions of this section.''.

SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

(a) Study.--
(1) In general.--The Administrator of the Environmental
Protection Agency and the Secretary of Energy shall jointly
conduct a study of Federal, State, and local requirements
concerning motor vehicle fuels, including--
(A) requirements relating to reformulated gasoline,
volatility (measured in Reid vapor pressure), oxygenated
fuel, and diesel fuel; and
(B) other requirements that vary from State to State,
region to region, or locality to locality.
(2) Required elements.--The study shall assess--
(A) the effect of the variety of requirements described in
paragraph (1) on the supply, quality, and price of motor
vehicle fuels available to the consumer;
(B) the effect of the requirements described in paragraph
(1) on achievement of--
(i) national, regional, and local air quality standards and
goals; and
(ii) related environmental and public health protection
standards and goals;
(C) the effect of Federal, State, and local motor vehicle
fuel regulations, including multiple motor vehicle fuel
requirements, on--
(i) domestic refineries;
(ii) the fuel distribution system; and
(iii) industry investment in new capacity;
(D) the effect of the requirements described in paragraph
(1) on emissions from vehicles, refineries, and fuel handling
facilities;
(E) the feasibility of developing national or regional
motor vehicle fuel slates for the 48 contiguous States that,
while protecting and improving air quality at the national,
regional, and local levels, could--
(i) enhance flexibility in the fuel distribution
infrastructure and improve fuel fungibility;
(ii) reduce price volatility and costs to consumers and
producers;

[[Page S1468]]

(iii) provide increased liquidity to the gasoline market;
and
(iv) enhance fuel quality, consistency, and supply; and
(F) the feasibility of providing incentives, and the need
for the development of national standards necessary, to
promote cleaner burning motor vehicle fuel.
(b) Report.--
(1) In general.--Not later than June 1, 2006, the
Administrator of the Environmental Protection Agency and the
Secretary of Energy shall submit to Congress a report on the
results of the study conducted under subsection (a).
(2) Recommendations.--
(A) In general.--The report shall contain recommendations
for legislative and administrative actions that may be
taken--
(i) to improve air quality;
(ii) to reduce costs to consumers and producers; and
(iii) to increase supply liquidity.
(B) Required considerations.--The recommendations under
subparagraph (A) shall take into account the need to provide
advance notice of required modifications to refinery and fuel
distribution systems in order to ensure an adequate supply of
motor vehicle fuel in all States.
(3) Consultation.--In developing the report, the
Administrator of the Environmental Protection Agency and the
Secretary of Energy shall consult with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and distributors; and
(D) the public.

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.
(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;

[[Page S1469]]

(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
2002............................................................ 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--
``(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

[[Page S1470]]

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, 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

[[Page S1471]]

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
``(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

[[Page S1472]]

``(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,
autotrans- formers, 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.
``(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:

[[Page S1473]]

``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 than 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.
``(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 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:

[[Page S1474]]

``(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 A112.18.1-2000, or any
revision thereto, applicable at the time of installation, and
by increasing energy efficiency and water conservation by
such other means as the Secretary determines are
appropriate.''.

SEC. 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.''.

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;

[[Page S1475]]

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

(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;
(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;
(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.

[[Page S1476]]

(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;
(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;
(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;

[[Page S1477]]

(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 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;

[[Page S1478]]

(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.
(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

[[Page S1479]]

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
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.

[[Page S1480]]

(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.''.

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).

TITLE 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;

[[Page S1481]]

(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.
(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 undersubsection (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 missions;
(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

[[Page S1482]]

(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;
(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--

[[Page S1483]]

(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, 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.

[[Page S1484]]

(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;
(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''.

[[Page S1485]]

(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.''; and
(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.--
(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.

[[Page S1486]]

``(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--
(A) $485,000,000 for fiscal year 2003;
(B) $508,000,000 for fiscal year 2004;
(C) $532,000,000 for fiscal year 2005; and
(D) $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;
(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.
(5) 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--
(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

[[Page S1487]]

(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;
(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.
(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; and
(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

[[Page S1488]]

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;
(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

[[Page S1489]]

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.
(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

[[Page S1490]]

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.
(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

[[Page S1491]]

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:
``(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, Extension, and Education
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;

[[Page S1492]]

(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, Extension, and Education
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,
Extension, and Education 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, Extension, and Education 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) 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

[[Page S1493]]

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;
``(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

[[Page S1494]]

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 to 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'' 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.).

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;

[[Page S1495]]

``(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 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,
hydrofluoro-carbons, 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

[[Page S1496]]

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 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

[[Page S1497]]

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;
(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.

[[Page S1498]]

(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.
(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

[[Page S1499]]

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) manufacturer's 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).
(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

[[Page S1500]]

(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;
(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.''.

[[Page S1501]]

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.

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, and
(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

[[Page S1502]]

(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.
(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

[[Page S1503]]

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 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.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Madam President, I believe the next order of business
is to have the opening statement of the Senator from Alaska. Unless my
colleague from Nevada has business to transact, I suggest the absence
of a quorum until the Senator from Alaska arrives.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. REID. Madam President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from North Dakota.
Mr. DORGAN. Madam President, I inquire about the order this
afternoon. My understanding is the ranking member on the Energy
Committee intends to make a presentation. I want to inquire about the
opportunity to make an opening statement on the bill. I inquire of the
majority whip what the circumstances are.
Mr. REID. If the Senator will yield, the Senator from Alaska is going
to speak for approximately an hour--it may last a little longer than
that--and thereafter the bill will be open for amendment. Or if the
Senator would

[[Page S1504]]

like to come back in an hour or so to make his opening statement, that
would be entirely appropriate. If the Senator wishes, we could
certainly make that in the form of a unanimous consent request that the
Senator be allowed to speak on the bill.
Mr. DORGAN. I guess I do not understand whether we are going to go
back and forth. If we are, I ask unanimous consent that I might be
recognized following whatever time is taken by Senator Murkowski.
Mr. REID. Does the Senator from North Dakota have some idea as to how
long he wishes to speak?
Mr. DORGAN. Perhaps 20 minutes or so. I do not know what order has
been established, if any.
Mr. REID. There has been no order established.
Mr. DORGAN. I ask unanimous consent that I might be recognized
following the opening presentation by Senator Murkowski.
The PRESIDING OFFICER. Is there objection?
Mr. DOMENICI. Reserving the right to object.
Mr. MURKOWSKI. Reserving the right to object.
The PRESIDING OFFICER. The Senator from Alaska.
Mr. MURKOWSKI. I do not intend to object. I propose we go back and
forth on opening statements and, following that, pretty much on
amendments on the basis of Members coming to the floor and being
recognized.
Mr. REID. The Senator from North Dakota still has the floor, but I
think it would be very good if we could get the opening statements out
of the way as soon as we could--not limiting anybody as to how long
they speak. If it takes into the evening, fine. We are just getting
started. I am not trying in any way to limit the length of the opening
statements on this bill. But I think it would be good if we could get
those out of the way now and move to the amendment process as soon as
possible.
Mr. MURKOWSKI. Reserving the right to object, and I shall not, I
think that is an appropriate procedure, if Members want to work out
among themselves a time agreement or discuss it, but I don't think any
Members should be limited to a time agreement on an opening statement
at this time.
Mr. REID. I note the Senator from New Mexico is here. It is my
understanding he wished to speak following the Senator from North
Dakota?
Mr. DOMENICI. If that is the order we are in, I ask I be added to
that consent in that manner.
Mr. REID. I withdraw the previous request and ask unanimous consent
the Senator from North Dakota, Mr. Dorgan, be recognized following the
statement of the Senator from Alaska, and following the Senator from
North Dakota, Senator Domenici will be recognized to give his opening
statement.
The PRESIDING OFFICER. Without objection, it is so ordered. The
Senator from New Mexico.
Mr. MURKOWSKI. Madam President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. MURKOWSKI. Madam. President, I ask unanimous consent the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. MURKOWSKI. Madam President, first of all, let me compliment my
colleague, Senator Bingaman, for the submission of what has been a
difficult and long process, represented by a lot of staff work on
behalf of the majority. I very much appreciate his lengthy opening
statement because I think it provides us with a detailed explanation of
what is in the bill.
As you know, the minority has not had an opportunity to craft this
particular bill. I do want to highlight that, indeed, we do want a
bill. We think, in response to the President's request, that we should
proceed with an energy bill, a comprehensive bill, and we believe,
since the House has met its obligation, it is paramount the Senate meet
its obligation and produce a comprehensive energy bill.
There are a number of amendments before us today; I am estimating
somewhere in the area of 100 or more. As a consequence, it is fair to
say that many of these are very contentious.
ANWR has already been mentioned this morning by Senator Jeff
Bingaman; CAFE is going to require an extended debate; the renewable
mandates are, in the opinion of some, not a mandate and, in others, a
clear mandate.
The electrical portion of this bill is going to take a great deal of
time and explanation for the specific reason that we have not had an
opportunity in the committee of jurisdiction to address the process
with extended debate, the submission of amendments, and the formulation
of a consensus. So there is going to be a lot of education in this
Chamber. There will be a lot of input from lobbyists as a consequence
of the unfamiliarity associated with a lot of the terminology. It may
be possible for Price-Anderson alone, which represents a necessity for
the continued contribution of our nuclear industry, to have a good deal
of attention based on those who do not want to see the nuclear industry
in the United States continue.

There is probably going to be considerable discussion over the issue
of Yucca Mountain and the question of what to do with our high level
waste that is associated with a number of years of accumulation.
It is interesting to note on that particular item that the Federal
Government entered into the sanctity of a contractual relationship with
many of the States, and certainly the industry, to take this waste in
1998. So basically the Federal Government is in breach of its
contractual relationship. Yet the ratepayers have been paying into a
fund of the Federal Government, somewhere in the area of $11 billion
over an extended period of time, and the Federal Government has not
been able to take the waste. As a consequence, the damages associated
with suits are estimated to be somewhere in the area of $60 billion to
$70 billion. This seems to be overlooked in the manner in which we
address a resolution of Yucca Mountain and what to do with it.
It is fair to say that we have differences of opinion relative to
this particular legislation. The chairman of the Energy Committee has
indicated a terminology that I believe will come up from time to time
that suggests renewable performance standards.
I think it is fair to say we see that as a clear mandate to achieve a
certain percentage. The question that comes to mind is why, for
example, hydroelectric is not considered to be a renewable. If it is
not a renewable, I don't know what it is. Is it beauty in the eyes of
the beholder? Is it charity in the eyes of the beholder? It has to be
something, if it is not renewable. Yet it is 10 percent of our energy
production. I find that rather inconsistent. But we are going to have a
lot of time on this legislation. So we are going to have other
inconsistencies.
I want to highlight that the United States has not done a bad job in
energy production and conservation. We have a chart that I think
highlights certainly noteworthy progress because it suggests that 25
percent of the world's energy is what we basically use to produce 30
percent of the world's economy. What do we do that with? We do that
with about 3 percent of the world's population.
If you look at this chart, it shows in detail that there has been
substantial growth in efficiency since 1973. If you look at the chart,
it is roughly 18,400 Btu's per dollar of gross domestic product in
1973. In the year 2000, it is 10,600 per dollar of gross domestic
product. That is a 42-percent decrease. So we are using 42 percent less
energy to produce the same value today.
I recognize we are all committed to conservation, we are committed to
greater utilization of renewables. But I think it is important to point
out the direction in which we are going and what we have achieved. We
haven't been standing still. We haven't been going the other way. We
have been making what amounts to substantive and significant progress.
Again, we are using 42 percent less energy to produce the same value
today in this country.
To those who suggest that the world is coming down, and to the
doomsayers who suggest that somehow we have to abandon our traditional
dependence on sources of energy, whether it be coal, whether it be
hydro, whether it be oil and gas or nuclear, for the advancement of
greater shares of energy sources such as might be available from wind
or energy sources that might be available from other alternatives, I
suggest to you there are other charts that show an alarming
inconsistency relative to the footprint.

[[Page S1505]]

Let us look at wind energy, for example, We have developed several
charts. The one I want to show first is a wind farm that is familiar to
many people, and certainly to those who reside in California and have
had occasion to drive to Palm Springs and go through the Banning area
in California where the San Gorgonio wind farm is located. For those
who have been there, it is not necessarily a very pretty sight. You go
up through the pass, and you see this huge area of wind farms. Some of
the windmills are moving; some of them aren't moving. How you compare
this wind farm in proportion to the generation of oil deserves a few
minutes of examination.
This chart actually shows the 1,500-acre wind farm that is in
evidence in California today. The energy production is about 800
million kilowatts of electricity, which is equivalent to 1,360 barrels
of oil and a footprint of 1,500 acres. I offer that in comparison
because one of the lightning rods in this discussion is going to be
ANWR. Let us not kid ourselves. We are talking about footprints, and
2,000 acres of ANWR equals 1 million barrels of oil a day.
We obviously need wind power, but we also have to face the reality
that there is a footprint. It is not very pretty. Some people say these
are nothing more than Cuisinarts for birds because low-flying birds
don't do very well going through this particular type of exposure.

I am not going to spend a lot of time on this at this time because we
will have to get into some of the specifics in this legislation.
I see the majority leader is on the floor. I want to talk a little
bit about the process because I take issue with the process. I have
great respect for both the majority leader as well as the chairman of
the Energy and Natural Resources Committee.
What we have tried to do is recognize that we have an obligation to
be responsive to our President. Our President has charged us to help
him seek ways to make our Nation more secure. Our Nation's energy
policy is a critical first step in this enormous challenge.
When we fight for freedom, when we seize the day for democracy, we
need energy. These things cannot be done without energy. When we
pioneer new technology, that saves lives. When we turn on the
conveniences that mark the difference between modern life and life of
the past, we turn to energy. It is probably something we take for
granted more than anything around us. That is why our work today is so
critical. That is partially why the process which has gotten us to this
point has been, in my opinion, frustrating, it has been embarrassing,
and it has not been in the traditions of the Senate.
I think the process is severely flawed as a consequence of the
committee of jurisdiction having been ordered by the majority leader to
no longer take up the process that ordinarily is appropriate around
here; that is, the bills are referred to the committees of jurisdiction
and the committees of jurisdiction proceed in an orderly manner--in a
manner where amendments are offered, discussions take place, and we
proceed through the process.
Does the majority leader seek recognition?
Mr. DASCHLE. Madam President, I was just going to ask if the Senator
would yield at the appropriate time.
Mr. MURKOWSKI. I would be happy to yield without losing my right to
the floor.
Mr. DASCHLE. I ask if the distinguished Senator from Alaska is aware
that the majority leader, when the Republicans were in charge, utilized
exactly the same process the last time the energy bill the Senator is
now criticizing came to the floor. I am wondering if the Senator could
clarify the difference between that set of circumstances and this one.
Mr. MURKOWSKI. I think there is a significant difference. I think
what the majority leader is referring to is his right to have a
contentious bill be introduced by the leadership. I have been around
here 21 years. I do not recall one instance where the committee of
jurisdiction has been deprived of the process--not only the committee
of jurisdiction, the Energy and Natural Resources Committee, but to
some extent the Environment and Public Works Committee, and to some
extent I think the Commerce Committee--and, as a consequence, bring a
bill up and bypass the jurisdiction of the committee. I think it is not
in the tradition of the Senate. It is certainly not in the tradition of
the committee process.
Why the majority leader chose to do this on the excuse that somehow
it was contentious, to me, fails the true test of this body, of being a
deliberative body that considers debate as part of the process, and
certainly the value of education from the standpoint of Members of the
committee to proceed.
The majority leader knows as well as I do that the reason it was
pulled from the committee was that we had the votes to vote out a
certain contentious amendment, and that was to open ANWR. The majority
leader simply pulled it. I think if he would refer to comments made by
the chairman of the committee, which I would be happy to quote later on
in the debate, he would see that the chairman of the committee didn't
have anything to do with it. It was simply pulled by the leader. The
leadership said they were going to take it over, and that is the way it
was.

Mr. DASCHLE. Madam President, will the Senator yield for one last
time?
Mr. MURKOWSKI. I am happy to yield.
Mr. DASCHLE. I do not mean to interrupt his presentation. I know he
has an opening statement. It is not my intention to debate him.
I ask unanimous consent that there be printed in the Record the
document showing the sequence of events beginning on May 16, of the
year 2000.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 2557--Bill Summary and Status for the 106th Congress

Sponsor: Senator Lott, Trent (introduced 5/16/2000).
Latest Major Action: 10/31/2000 Senate floor actions:
Motion to proceed to consideration of measure made in Senate
(consideration: CR S11417).
Title: A bill to protect the energy security of the United
States and decrease America's dependency on foreign oil
sources to 50 percent by the Year 2010 by enhancing the use
of renewable energy resources, conserving energy resources,
improving energy efficiencies, and increasing domestic energy
supplies, mitigating the effect of increases in energy prices
on the American consumer, including the poor and the elderly,
and for other purposes.
Titles(s): (italics indicate a title for a portion of a
bill).
Popular Title(s): Oil Dependency on Foreign Resources bill
(identified by CRS); Energy Security Act (identified by CRS).
Short Title(s) as Introduced: National Energy Security Act
of 2000; Marginal Well Preservation Act of 2000; Frontier
Exploration and Development Incentives Act of 2000; Federal
Oil and Gas Lease Management Improvement Act of 2000; Arctic
Coastal Plain Domestic Energy Security Act of 2000.
Official Title as Introduced: A bill to protect the energy
security of the United States and decrease America's
dependency on foreign oil sources to 50 percent by the Year
2010 by enhancing the use of renewable energy resources,
conserving energy resources, improving energy efficiencies,
and increasing domestic energy supplies, mitigating the
effect of increases in energy prices on the American
consumer, including the poor and the elderly, and for other
purposes.
Status: (dates in italics indicate Senate actions). See
also: CQ Custom BillTrack Report
5/16/2000: Introduced in the Senate. Read the first time.
Placed on Senate Legislative Calendar under Read the First
Time.
5/17/2000: Read the second time. Placed on Senate
Legislative Calendar under General Orders. Calendar No. 552.
6/15/2000: Committee on Energy and Natural Resources.
Hearings held. Hearings printed: S. Hrg. 106-746
9/22/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S9029).
9/25/2000: Motion to proceed in considered in Senate
(consideration: CR S9137).
9/27/2000: Motion to proceed to consideration of measure
withdrawn in Senate (consideration: CR S9375).
9/27/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S9376).
10/2/2000: Motion to proceed considered in Senate
(consideration: CR S9572).
10/6/2000: Motion to proceed considered in Senate
(consideration: CR S10039-10040).
10/19/2000: Motion to proceed consideration of measure
withdrawn in Senate (consideration: CR S10769).
10/19/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S10770).
10/26/2000: Motion to proceed to consideration of measure
withdrawn in Senate (consideration: CR S11104).
10/26/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S11104).
10/27/2000: Motion to proceed to consideration of measure
withdrawn in Senate (consideration: CR S11205).
10/27/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S11206).

[[Page S1506]]

10/30/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S11378).
10/31/2000: Motion to proceed to consideration of measure
withdrawn in Senate (consideration: CR S11416).
10/31/2000: Motion to proceed to consideration of measure
made in Senate (consideration: CR S11417).

Mr. DASCHLE. Madam President, I say for the Record that the majority
leader at that time, Senator Lott, introduced an energy bill outside of
the committee. It was read the first time and was placed on the Senate
Legislative Calendar under ``Read the First Time'' on May 16. On May
17, the bill was read the second time. And then on September 22 of the
year 2000, the majority leader made a motion to proceed. None of the
activity had taken place in committee, except for one hearing. I think
the Senator from New Mexico has had multiple hearings on energy and on
the bill over the course of the last many months. But this is exactly
what our Republican colleagues did in May and September of the year
2000.
So I find it a little inconsistent for the Senator to criticize our
efforts to bring a bill to the floor this year when his party and his
leadership did exactly the same thing in May and September of the year
2000.
Again, I thank the Senator for yielding.
Mr. MURKOWSKI. Madam President, let me respond to the majority leader
because I think we should pursue this a little bit, because the
traditions of Senate procedure are very much in play.
While I agree that bills have been brought to the floor in accordance
with Senate rules, I completely disagree the Republicans brought bills
to the floor while violating the Senate rules. As long as I was
committee chairman under Senator Dole and Senator Lott, I can never
recall of one instance where the majority leader ordered me--ordered
me--to stop the process of marking up a bill and shut down the standing
committee of the U.S. Senate.
And Senator Daschle, that is exactly what you did on October 9th of
last year. You ordered the Senate energy committee to suspend markup of
the energy bill. As a result, the committee has not held a legislative
markup since August of last year out of fear that we would want to
bring up amendments regarding energy, because you knew we had the votes
to pass them out.
Mr. DASCHLE. Will the Senator yield?
Mr. MURKOWSKI. I would like to finish my statement. I will be happy
to yield at the conclusion of my statement.
I am sure those on the other side of the aisle recognize that the
Standing Rules of the Senate require committees to meet regularly to
conduct business. And I am not aware of any unanimous consent request
asking the Senate Energy and Natural Resources Committee to be exempt
from the rules of the Senate. So I think the comparison of what
Republicans and what Democrats did is completely different.
Let me refer the Senator to--before I yield, and I will yield--to a
release that came out of Senator Bingaman's office. This came out
October 9. I quote:

I am happy to yield to the majority leader, without losing my right
to the floor.
Mr. DASCHLE. Madam President, I hope the distinguished Senator from
Alaska has more documentation than a press release that will allow him
to make the assertion he has just made. I do not order my chairmen to
do anything. I consult with them. I talk with them. But I think the
Senator from New Mexico, who is on the floor, can attest to that fact.

There was no ordering here. There was plenty of consultation, just as
I am sure there was some consultation with the Senator from Alaska when
Senator Lott chose to bring the energy bill to the floor in May of the
year 2000. I doubt very much that he ordered Senator Murkowski or
anybody else to comply with his wishes. I am sure he consulted. That is
exactly what we did.
So I hope the Senator has some documentation to support his assertion
because that is quite a charge. I will say that there was ample
consultation, not only with the Senator from New Mexico but many other
Senators who also had jurisdiction.
Nine different committees have had some jurisdictional role to play
with regard to the completion and the progress on this legislation--
nine committees. To take up this bill, in sequence with each of the
nine committees, or even simultaneously, for that matter, would be
quite a legislative undertaking.
So we have worked diligently to come up with a working draft that we
have shared with our Republican colleagues. But to assert that I
ordered anybody to do something is, I think, not only an error but is a
disservice to the process that we have been engaged in.
I thank the Senator again for yielding.
Mr. BINGAMAN. Madam President, could I also respond to----
Mr. MURKOWSKI. If I may, before the majority leader leaves, tell him
that I very much appreciate that we have had this dialog because I
think it truly represents a departure from the committee norm that I
certainly have learned to expect around here. And the fact that the
majority leader has seen fit to identify that the Republicans have done
it, therefore, it is all right--or the implication of that--I think is
not necessarily applicable to good legislation or a process.
I again would demur, because having been on the Energy Committee for
a little over 21 years, somewhere between 21 and 22--I have never,
never had a situation where the majority leader has taken, if you will,
an action, either direct or through the chairman, which would absolve
the committee from its function.
The fact is, we have not had--and I think the majority leader can ask
any member of the committee, at least in the minority, as to whether or
not we have had any significant input in this legislation. We have not.
We have hot had any markups or any opportunity for any amendments. And
I think the majority leader would have to acknowledge that because that
is factual.
It was rather curious at the time this was done. It was shortly after
we lost control of the U.S. Senate. It was shortly after it became
apparent that we had the votes to get out an amendment that would
include opening up ANWR. It was clear that we had the votes to do it.
Then the majority leader has left us in this quandary where he stated
that even if you do have the votes--and it would be a 60-vote point of
order on a cloture--why, we cannot win because he will pull the bill
down. I think that kind of an approach to the Democratic process around
here is a bit inconsistent with tradition.
Mr. DASCHLE. If the Senator will yield one last time, I know Senator
Bingaman has been patiently waiting to be able to register his own
comments here.
Let me just say, it is just not accurate for the Senator from Alaska
to assert that this is unprecedented. That is the word he used; this
was ``unprecedented.'' As I said for the Record--it is now part of the
Record--this very action was taken by the majority leader in May and
September of the year 2000--exactly the same.

So I would just make sure that our colleagues are aware, this is not
unprecedented. It has happened on many, many occasions, involving many,
many issues and many committees.
I think we ought to get on to the substantive issues, and put this
procedural issue to rest once and for all. We have a lot of important
substantive debates in store. I look forward to having those. But I do
hope we can clarify the Record in this regard and move on to more
substantive questions.
Again, I thank the Senator for yielding.
Mr. MURKOWSKI. It is isn't a matter of who is going to have the last
word. The majority leader should have the last word. But, on the other
hand, this committee was requested to stop markup, and that is a fact.
And I do not think it can be colored any other way by the majority
leader.
Mr. BINGAMAN. Mr. President, may I clarify, since I have been quoted,
at least?

[[Page S1507]]

The PRESIDING OFFICER (Mr. Johnson). The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, since I have been quoted, or a press
release has from my office, the decision to terminate the markup of any
legislation on energy was made by me after consultation with the
majority leader because it was a joint decision by us that the best way
to get a bill to the Senate floor, which reflected the policies that we
agreed made sense for the country, was to pursue that approach.
As the majority leader has pointed out, that is exactly the approach
that Senator Lott used when he was majority leader.
As far as the action we have taken in the Senate Energy Committee, I
think the Senator from Alaska will acknowledge that we have had a
series of hearings. We have had various confirmation hearings. I have
approached the Senator from Alaska several times in the last several
months to see whether or not we could proceed to consider legislation
without having controversial energy bill amendments added to that
legislation. I was informed we could not.

We have held off on considering those other nonrelated pieces of
legislation. We have worked hard to accommodate the majority and to
accommodate the administration in getting all of their nominees
approved. We have worked hard to have hearings that were of interest to
members of the committee. And we intend to continue doing so.
Frankly, I am very proud of the product we are bringing to the Senate
for consideration today. It is a good bill. It does reflect many
proposals that came from the Republican side. We worked hard with
Members from the Republican side to perfect provisions in this bill. It
has not been in an official markup. But just as we have worked with
Democratic Members to perfect provisions in the bill, we worked with
Republican Members to perfect provisions in the bill, and the same with
the administration. This is a combined effort. I feel very good about
it.
I hope we can get on with a discussion of the bill, with
consideration of amendments, to the extent that Senators have
amendments. I know there are many. That is exactly what this period on
the Senate floor is devoted to.
I know the Senator from Alaska has been anxious to get a debate on
the Senate floor and anxious to get an opportunity to offer his
amendments. He has that time. He has that opportunity. I hope we will
use it.
I yield the floor.
Mr. MURKOWSKI. I thank my friend for his comments. I, too, wish to
get on with my opening statement.
We have to call a spade a spade around here for a change. I hope the
chairman of the Energy Committee would recognize the reality and
acknowledge that indeed the reason we could not agree on proceeding
within the committee on various amendments is because we could only
agree to it if we didn't offer an amendment to put ANWR in the package.
If I am wrong on that, I hope Senator Bingaman will correct me. That is
clearly my understanding. The realization was that the votes were there
to vote it out of committee, and they didn't want to have a vote in
committee. That is a rationale. I think we should quit kidding
ourselves.
I didn't read all of Senator Bingaman's press release, but I ask
unanimous consent that it be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Energy Committee Suspends Mark-Ups; Will Propose Comprehensive and
Balanced Energy Legislation to Majority Leader

At the request of Senate Majority Leader Tom Daschle,
Senate Energy & Natural Resources Committee Chairman Jeff
Bingaman today suspended any further mark-up of energy
legislation for this session of Congress. Instead, the
Chairman will propose comprehensive and balanced energy
legislation that can be added by the Majority Leader to the
Senate Calendar for potential action prior to adjournment.
Noted Bingaman, It has became increasingly clear to the
Majority Leader and to me that much of what we are doing in
our committee is starting to encroach on the jurisdictions of
many other committees. Additionally, with the few weeks
remaining in this session, it is now obvious to all how
difficult it is going to be for these various committees to
finish their work on energy-related provisions.
Finally, and perhaps most importantly, Bingaman said, the
Senate's leadership sincerely wants to avoid quarrelsome,
divisive votes in committee. At a time when Americans all
over the world are pulling together with a sense of oneness
and purpose, Congress has an obligation at the moment to
avoid those contentious issues that divide, rather than
unite, us.
Bingaman will continue to consult and build consensus with
members of his committee, with other committee chairs and
with other Senators as he finalizes a proposal to present to
the Majority Leader.

Mr. MURKOWSKI. I have the greatest respect for my friend. But to
suggest that somehow what has happened is the everyday order of
business in the Senate, where legislation that is contentious is pulled
away from committee, let me quote what came from Senator Bingaman's
press release, again, on October 9. It says:

Finally, and perhaps more importantly, Bingaman said, the
Senate's leadership sincerely wants to avoid quarrelsome,
divisive votes in committee.

What is wrong with divisive votes in committee? They occur all the
time around here. It is a difference of opinion. It is voting out and
prevailing or not. Here they say they want to avoid quarrelsome,
divisive votes in committee.
Furthermore:

At a time when Americans all over the world are pulling
together with a sense of oneness and purpose, Congress has an
obligation at the moment to avoid those contentious issues
that divide, rather than unite us.

I can tell my colleagues, by taking the authority away from the
committee, it certainly did not unite us.
I will have a little more to say about this process because it is
important that the American public understands it. We worked on a bill
last year. We worked with at that time the minority. We had a lot of
hearings. But it was not on this legislation.
I am not suggesting there aren't good provisions in this bill. The
point is, the Energy Committee has not had a legislative business
meeting since August 1 of last year, despite the Senate and committee
rules requiring a business meeting at least once a month. We are either
in violation of the rules or we are not. The fact that a bipartisan
majority of the Energy Committee would have brought to the floor a
comprehensive energy bill with the chairman's report, there is no
question the majority leader was free to incorporate it or ignore it,
but at least the Senate would have had the benefit of our views.
These are the facts. You cannot whitewash it any other way. The
terminology the majority leader was critical of that I attributed to
him, that he had ``ordered'' or ``directed'' or ``it was agreed to,''
nevertheless, it happened. Things don't happen around here in a vacuum.
We are all aware of that.
The process is flawed. I am glad the majority leader was here so we
could have a discussion.
This is not a representative bill. Somehow the prevailing majority
has forced the Senate to consider this measure, again, without the
benefit of committee deliberation and action. As a consequence, he has
made the task much harder of moving this bill. It is much more
complicated than it had to be because it has not gone through the
committee process. To say, well, Senator Lott did it that way, I can
tell my colleagues, again, I know of no instance where the committee of
jurisdiction was removed from its obligation to address the issue
before it.
Difficult and divisive issues that could and should have been worked
out in committee are going to be right here in the Senate Chamber.
I am going to work towards a bill. That was the first thing I
indicated in my opening statement. I mean that. We want a bill. We want
a comprehensive bill. We want a good bill. But we want some input in
it. So what we will have to do is have our input by amendment. We don't
think that should have been necessary but, clearly, that is the only
choice we have. As a consequence, we are going to begin a long process.
I suppose I will be subject to some examination, but I think the
majority leader said, as far as he was concerned, a portion of the bill
was dead--ANWR, dead. That hardly represents anything more than a
guess. He may be right. But if it is dead, Tom Daschle killed it. Make
no mistake about that.
I hope when Members recognize the severity of our dependence on
imported oil, they will recognize that in 1973 or

[[Page S1508]]

thereabouts, when we had the Arab oil embargo, when we had gas lines
around the block--and some people are old enough to remember that--the
public was outraged and indignant, that was during the Yom Kippur War.
We were 37-percent dependent on oil at that time. We were blaming
everybody. The Government was lashing out: How could this happen?
Now we are over 58-percent dependent. When we talk about doing
something about it, we better be specific.
We could have had, in the committee process, hundreds of amendments
that could and should have been dealt with in the committee. Now they
are going to take time on the floor away from our deliberations because
the excuse I have heard so far is they are contentious. I don't know
what isn't contentious around here. We all respect each other's
opinions. But we are entitled to express those opinions in a process
associated with the committee function.
As far as I am concerned, the majority leader took control over the
committee process. He said: We are going to have 60 votes because there
is going to be a filibuster.
I have never heard or seen that kind of an action taken before. Maybe
someone will enlighten me as to when the authorities have been taken
from the committee. Every committee chairman, whether Republican or
Democrat, should remember this because it is a milestone in
inconsistency--a milestone, in my opinion, not in the best tradition of
the Senate.

Now, we have heard our majority leader lay the responsibility around
here, but I think the fault rests solely with his judgment. I don't
think there is any question about it, and I doubt very much if anyone
would disagree with me, Republican or Democrat alike.
But even with the additional hurdles now being put before us, I think
we can move a bill off the floor. This Nation needs an energy bill, one
that is rooted in findings--the finding of new alternative energy
sources, boosting efficiency, and helping us use less energy. This is
something with which Republicans agree. But efficiency and alternatives
are simply a two-legged stool, and they are not enough. Alone, they are
not going to close the gap between energy supply and demand in this
Nation.
We must also seek to safely increase our domestic energy resources,
and we must do it in a way that protects our environment. How do we do
that? We do that through technology. Make no mistake, we are the most
efficient economy in the world, and we are getting better. I have
indicated on this chart, again, the recognition of just how well we are
doing. As the chart indicates, we are doing pretty well. The fact that
we have been able to increase, if you will, our energy efficiency by
40-some-odd percent I think is evidence of the advancements we have
made.
Now, it was approximately 42 percent. As I indicated, this chart
shows growth in efficiency since 1973, and it shows a 42-percent
decrease, if you will. That is a decrease in our utilization of energy.
Again, if 3 percent of the population of the United States utilizes 25
percent of the world's energy and produces 30 percent of the world's
economy, that is not a bad start. So we are using 42 percent less
energy to produce the same value today. That is what that chart shows.
Senator Bingaman and I have a lot of charts here, so we will probably
be trading charts before this process is over. What we have done, to a
degree--and we can do better--is we have proven we can balance our
conservation and environmental protection with increased domestic
energy production. For that reason, I refuse to take part in the fable
being put forth by those who are running the so-called spin machines
around here that say the Nation needs to make a choice. Some say we
need to make a choice between using the energy technologies of today--
coal, oil, gas, hydro, nuclear--or using energy technologies of
tomorrow.
Now, some would discuss this as energy vis-a-vis the environment. I
don't think that is the issue. Some say this is about today and
tomorrow. I don't think that is the issue. Some insist whatever
solutions we propose, they can't be done safely today. I don't think
that is the issue. The logic sells the American worker and American
ingenuity far too short. We need to strive for new technologies and
diversify our energy supply. We need to conserve more and become more
energy efficient.
If this bill passes today, we will not be driving hydrogen cars
tomorrow, in spite of the fact that many have suggested, ``Why can't
we?'' It is simply a matter that we don't have the technology. We will
not be powered by solar or wind energy by morning. We cannot simply
shut down the economy of this Nation and put our national security on
hold for a generation or more while we work on new technologies. What
we are going to have to do is build a bridge. I think most people would
agree that we need to build a bridge through technology to assess, if
you will, the goals of tomorrow. It is not going to come just by
setting a standard and making it become effective in 12 to 15 years.
Most of us are not going to be around to be held accountable in 12 to
15 years for a goal set today.

We have seen what has happened since 1992, when we set certain
standards around here on mileage for utilization of nonpetroleum-based
utilization in Government vehicles. We haven't achieved that, for the
most part. We have been in violation of the agreement. Whom do you
blame? The Federal Government. What is achievable, and at what cost?
How much are you willing to spend? These are all legitimate
considerations that I think have to be dealt with in an open debate and
in a manner in which we can get the best experts to advise us on just
what course of action to take.
Our energy comes from many sources today--coal, oil, natural gas,
hydro, nuclear, and so forth. We must, through the technology, explore
new and highly, perhaps, unachievable technologies today, but they
might be achievable tomorrow, because they can reduce our consumption
in the coming years.
Recognize, Mr. President, we have 200 million cars on the road. Oil
is going to continue to be the primary ingredient in surface
transportation needs for the foreseeable future--even if they get 30
miles to the gallon. A lot of people reflect on all sources of energy
that we have in this country and say: Aren't we fortunate? We have
hydro and nuclear, and we have plenty of oil and gas, and a good deal
of it we import. Nevertheless, we have it, and we have technology for
wind and solar. But make no mistake about it, for transportation, the
world is beholden to oil. We don't fly in and out of Washington on hot
air--although there is a lot of it here. So whether it be on the ships,
trains, trucks, cars, or airplanes, it is oil.
The world is in the same position. Transportation is dependent on
oil. So we have to reflect on reality and recognize that, as we become
more dependent on oil, it is from overseas. We import that oil, and we
become more vulnerable. As I indicated, in 1973 we were 37 percent
dependent on imported oil; today, that is magnified to 58 percent. What
about nuclear? We have over 100 nuclear plants spread across the
country. They provide nearly 20 percent of the energy produced in this
Nation. We see that new electric plants are being built today that run
on natural gas.
The United States is the ``Saudi Arabia of coal.'' We have West
Virginia coal. We have Pennsylvania coal. We have coal in Alaska. We
have a supply of coal that would last for centuries. We can use these
coal resources in a cleaner, more efficient way, and we have to do
that. We can do that. It is just a matter of applying our technology.
Now, all this, to a degree, relates to the economy of this country.
We are talking about jobs. It is pretty simple. Development of our
domestic resources. I am talking about resources in the United States.
That is going to mean thousands and thousands of jobs across our
Nation. I am talking about pipe, new software, building new double-
bottom, double-hull supertankers, which we are currently building in
California and in Mississippi. These are U.S. ships--the largest
concentration of tonnage under the U.S. flag in our merchant marine
service. These are mandated by law because the carriage of goods
between two American ports has to be in a U.S. flag vessel, with a U.S.
crew, built in a U.S. yard.
So these are big job issues, Mr. President. That oil that moves from
my State of Alaska doesn't go to Japan. There hasn't been a drop of oil
that has moved outside the United States since a year ago last April.
What did go was

[[Page S1509]]

a very small amount that was excess to the west coast. There is no
excess oil going from the west coast. We are importing oil from Saudi
Arabia, as well as other areas, and bringing oil down from Alaska. My
point is very clear: We are becoming more dependent on imported oil,
and as we do so, we are exporting our dollars and our jobs. What is the
logic of that?

The development of domestic resources would mean thousands and
thousands of jobs across the country. These are good paying jobs. These
are not service jobs flipping hamburgers in a McDonald's. As I
indicated, ships will be built by high-skilled workers. This will help
turn around our economy and get us out of this rather soft recession.
Somebody put together a figure--and I do not know how correct it is--
that we have lost some 700,000 jobs since September 11. Whatever the
case, it is time to put American workers back to work. We can do it,
because we have before us some opportunities to produce more energy in
the United States.
Let's talk about some of the groups that are supporting proposals to
develop more domestic energy in the United States. The Teamsters, the
Seafarers International Union, the Maritime Laborers Union, the
Operating Engineers Union, the Plumbers and Pipefitters Union, the
Carpenters and Joiners, Building Trades, dozens of labor groups
representing thousands of workers are behind our efforts for a
comprehensive energy bill that creates nothing more than jobs in this
country.
I suspect every Member of this body is a little concerned about the
creation of jobs, the maintenance of jobs, the switch we have seen, as
we have seen more jobs in the service industry but less higher paying
blue collar jobs.
Dozens of labor groups representing thousands of workers are behind
our efforts for a comprehensive energy plan that creates jobs, that
develops energy sources at home. For this reason, I am going to oppose
any amendment or underlying provision that sacrifices American jobs for
political expediency. I am not interested in political expediency. I
have been in this body for over 21 years.
I also reject the underlying premise of the majority leader, the
senior Senator from Connecticut, and the junior Senator from
Massachusetts--who I hope will join us in this debate. Those who oppose
domestic resource development do not believe that American workers and
American technology can develop our natural resources while fully
protecting the environment. We have that capability, there is no
question about it.
Some Members may choose to rely on sources such as Saddam Hussein or
others for our supplies, but I will stand with the American workers to
develop these new technologies. Unlike those who oppose nuclear, hydro,
natural gas, and oil, I have faith and confidence in this Nation and
the men and women who drive it. We need an energy bill that provides
today's resources to move us to tomorrow's promises, not the shallow
measures before us with empty promises that simply export the wealth,
jeopardizes the national security, and shifts U.S. jobs overseas.
Obviously, we have some differences of opinion with America's
environmental community. They are opposed to various parts of this
bill, particularly those parts that suggest we can develop our domestic
resources at home; more particularly our oil. They have no scientific
evidence to suggest that we cannot. None whatsoever. We will have an
opportunity to get into that a little further in the debate.
Let's talk a little bit about the bill before us, the bill that was
introduced by the majority leader--call it the Daschle bill. As far as
I am concerned, it is pretty hard to identify new job production
associated with that legislation. We have already discussed that we
have not had hearings, we have not had input, and the excuse has been:
Senator Lott did it; therefore, it is all right. I think I have already
made that point, and that point is very explicit. We have never had
responsibility pulled from the committee simply because the votes in
the committee were supportive of an amendment that would increase
domestic production.

Since we have not had the benefit of committee debate and approval, I
want to delve into this bill for a closer look. What does this bill do?
Even though we have only seen it for a very short period of time, the
legislation appears to authorize some 60 new Federal programs, many of
which already exist at the Department of Energy or elsewhere. We can go
into those.
We are told there are some 32 new studies on various impacts of
energy policy, but studies are what one calls for when you are not
ready to act. We are ready to act. We need an energy bill now. We need
to make decisions now. There is nearly $49 billion in new spending
authorizations over the next 5 years. In a time of fiscal constraints,
the level of spending called for in this bill, if fully funded, is well
above the baseline estimates for these programs. This elevated level of
spending will take precious funds away from other spending priorities,
such as homeland defense, education, and health care.
As a matter of energy policy, these authorizations have questionable
value. Unrealistic authorizations, in my opinion, are nothing more than
empty promises. So we have waited for 6 months for the new energy
proposal. Yet it is not much different than the one offered nearly a
year ago.
What is different now is that 700,000 Americans are out of work in
this country, a recession, I remind you, that was the direct result of
one thing: Energy price increases that we experienced in 1999 and 2000,
all for a lack of an energy policy.
I will go through the titles very briefly. Title X, XI, and XIII of
this bill simply rehash other Senators' proposals to address the risk
of climate change, and there are so many conflicts among these
provisions that will need to be sorted out that is going to take a lot
of time. Title XII, XIV, XV, energy R&D and workforce training is the
work product of the only markup held before the Energy Committee. What
does that say for the committee process? I know that other committees
were affected.
In addition, the committee had agreed this provision needed to be
revisited before we completed our markup.
Title XVI, technology assessment: Like so many other parts of this
bill, it is a title for which no legislative hearings have been held,
no scrutiny whatsoever. The scrutiny on it is obviously lacking.
Title I through IX are largely the same as in Senator Bingaman's
original bill, I might add.
Title XVIII, critical energy infrastructure, was the very same title
that prompted the Democratic leader and the Energy Committee chairman
to suspend committee action in the first place. I ask, what is new,
what is different about this proposal to merit delaying discussion on
these important issues for the past several months?
On a positive note--I am sure my colleagues wonder if there are any
positive notes in this bill; I am pleased to say we do. I do not
suggest there are no provisions of the pending legislation that have
redeeming social value. There are several. There are provisions that we
have generally agreed on that could have been refined and supported
almost unanimously in committee had we been allowed to meet.
Among those provisions are title I, regional coordination of energy
policies and planning for energy infrastructure; title II, PUCHA and
PURPA repeal for electricity and possibly changes in other provisions
in this title with minor changes; title III, hydro relicensing. The
proposal in this bill reflects part but not all of an emerging
consensus on how to balance power needs with environmental concerns.
And title IV, Indian energy programs. I only wish the Committee on
Indian Affairs had been allowed to hold hearings to consider these
programs in some detail.
I happen to be a member of that committee. I am a member of the
Finance Committee. We still have not reported out the tax aspects
associated with this bill.
So we have title V, the Price-Anderson, both the chairman of the
Energy Committee and I proposed full review of Price-Anderson for both
the DOE contractors and the NRC licensees. Why NRC licensees are not
included, I am not sure, but hopefully we will find that out in our
debate. Title VI, permanent authority for the SPR and a related study
of SPR capacity are areas of broad agreement.
Title VII, higher standards for Federal fleet fuel economy proposed
comes

[[Page S1510]]

from our bipartisan energy proposal and other alternative fuel
provisions that are basically taken from H.R. 4, the House bill, and
the renewable motor fuel provisions for ethanol are the same as those
that I proposed last year in a draft revision of our bipartisan bill.
We agree on much of title IX, energy efficiency, with one large
exception for the 13 SEER air conditioning standards rejected by the
administration last year.
There is agreement in principle but not on specific spending levels
or program structures in title X, onward, with respect to climate
change and energy R&D. Many of the subtle differences of opinion
throughout this bill could have been easily addressed in a committee
markup and not on the Senate floor, but we are left with that reality
for reasons we have already articulated, although we have differences
of opinion on those, and I respect that. So I regret we were deprived
of the chance to proceed in committee, for now we will have to deal
with these changes on the floor, which will make our task harder and
longer.
Since I commented on the areas of agreement, let me comment on the
issues of disagreement because this is where we are going to be
spending a lot of time.
We are talking about issues of agreement, and despite the broad
agreement on the majority of issues contained in this bill, there are
some other provisions which we have great disagreement on. I want to
address some of those today. I think we should have been able to
provide the Senate with a recommendation and some sense of legislative
history, and we should have been able to better define the debate, but
because of the reality that the committee has not had an opportunity to
meet, why we have no other choice but to proceed.
I think it is important that particularly the minority that we are in
now reflect on what our intention was so we could communicate that to
the majority. So we developed some principles on one of the more
contentious parts of the bill, and that was the electricity portion.
Basically, what Republicans, as a minority, stand for in our caucus
is an obligation to, first, protect consumers.
That would give the Federal Trade Commission precautions and
protections without preempting the traditional authority of the States.
We feel very strongly about that. We are talking about trying to
streamline the regulatory process, eliminate some of the obsolete
statutes like PUHCA and PURPA, and limit Federal micromanagement.
One has to wonder, if we reflect on the Enron situation, if we had
what is in this bill, could there have been an orderly transition of
the market working? Because what happened with Enron clearly was: The
market worked. There were no interruptions of power. There were no
price increases. One wonders if we had to get permission if one company
whose trading suddenly falls to its knees can have an orderly,
innovative market work. Well, maybe we can get to that, but I
personally am a little uncomfortable with too much Federal
micromanagement.
We also stand for enhancing interstate transmission while preserving
State authority through the interconnection concept. We want to assure
reliability and allow regional flexibility, the North American Electric
Reliable Council enforceable standards. We want to promote renewable
energy, market-driven approaches and consumer choices and not Federal
mandates. That is kind of where we are coming from.
Again, those issues we disagree on because we could not get together
and resolve our differences in committee. Among those issues we
disagree on are the extent to which we should strip States of their
rights over electricity and give those rights to the Federal Government
through FERC. How much should we manipulate the electric markets and
force a higher priced energy resource on to the consumer at a lower
cost? This is the issue of renewable portfolio standards.
How best to protect nuclear plant operators from any exposure on a
catastrophic loss and how to keep them afloat, that is the Price-
Anderson. Some people see this as a way of prolonging the life of the
nuclear industry, but I take issue with those people because they are
not realists and do not recognize that there is a trade-off.
There are no emissions with nuclear. There is a problem with waste,
but it is emission-free. We look at global warming concepts. We look at
emission standards. There is certainly room for the nuclear energy
industry, and they need Price-Anderson.
Where do we explore for energy resources to meet our growing needs?
We know about ANWR, but what about the lower 48? How do we make
automobiles more efficient without jeopardizing safety, undermining
consumer choice, and hurting the American worker? This is very real, if
you are working in an automobile plant or in a parts plant.
How to make our homes more efficient, again, without hurting the
American worker? Our energy efficiency standards such as the proposed
13 SEER air-conditioning and heat pump standard--are those the answer?
Our disagreements on these provisions are deep and run to the heart of
what we believe the proper role of government to be.
Many of these provisions constitute an unacceptable intrusion of the
Federal Government into the marketplace. Many of these provisions have
little to do with our energy security but represent a growth in Federal
authority at the expense of the States and our concept of federalism.
Some of these issues impact my State of Alaska. The rationale is very
clear. We have a chart here that shows Alaska and gives you some idea
of the geographics of the area, because it has been said the energy
wealth of North America is in the Arctic. If you look at Canada over in
the all-white portion here, and look at Russia over across the Bering
Straits in the all-white, what you have between them is Alaska. If you
concede the energy wealth of North America is coming from the Arctic,
you have to concede one thing: The only State with ``Arctic'' in it is
Alaska, and we have already seen the development of oil from Prudhoe
Bay. That has constituted initially 25 percent of the total crude oil
produced in this country but today about 20 percent. It is pretty
significant.
A lot of people forget that the same arguments that prevailed in this
body in the 1960s are prevailing today on the issue of opening up ANWR.
We have another chart I want to show on Alaska that gives a little
different view because it projects the ANWR issue. We will go into this
in greater detail. But what I want to show is the realization that the
Prudhoe Bay oil field has produced that energy for about 27 years. It
has produced it by an 800-mile pipeline, so the infrastructure is
already there. It is pretty significant because I indicated it is 20
percent to 25 percent of our total energy.
Let's relate that to real terms because it is appropriate that we
relate this to things we can all understand. How big is Prudhoe Bay? It
was supposed to have recoverable reserves of 10 billion barrels. We are
in the process of producing the 13 billionth barrel now.
How big, according to the experts in the final USGS study? There was
one made in 3 days to accommodate the former Secretary of the Interior,
but the current one, the most credible one, suggests the reserves at
5.6 billion to 16 billion barrels. If it is an average between the two,
it is about 10 billion barrels, which would provide the Nation with as
much as Prudhoe Bay is currently providing. So you double that.
The question is, Can you do it safely? We will get into it later. The
footprint is pretty small. In H.R. 4, the House bill, it was 12,000
acres. We are not talking about peanuts here. If the oil isn't there,
it will not be developed; that is all there is to it. We have to find a
lot of oil in Alaska because the costs are so high.
The chairman of the committee talked a little bit about natural gas
that has been found. It is important to note on this chart that this
gas has been found associated with looking for oil, not gas. It is an
incidental find. I used to say to the geologists: If you find another
gas discovery, forget it. We are not even going to buy you a Coke. We
are looking for oil. But in the process, they accumulated about 36
trillion cubic feet of proven gas, the largest deposit of gas known to
exist in North America. So it is very important that we look to ways to
get that out. I

[[Page S1511]]

appreciate working with my colleague, the chairman of the committee, in
that regard.

We need the development of gas from the Arctic. Our country needs it
for the simple reason that we are pulling down our gas reserves faster
than we are finding new ones. I think we have a chart that shows our
reserves in decline. The Senate plan that the Democrats propose--the
Senate Democratic plan that has been presented--initially was to
provide, I believe, a $10 billion guarantee. It did not address a route
selection.
One of the amendments I am going to have will be to mandate a
southern highway route that would bring the gas down paralleling the
pipeline to Fairbanks and follow the highway into Canada. That would
keep options open for Alaskans. It would keep options to bring gas down
to the port of Valdez if the market for the liquefied natural gas in
Asia should develop. It would provide an alternative to bring gas into
Fairbanks and take that gas further on down to Point Mackenzie or take
the gas into Anchorage or down the Kenai Peninsula where gas is
liquefied and exported and urea and ammonia are made. We want to keep
all our options open. So it is very important a southern high route be
designated in this legislation.
Make no mistake about it, I support the development of the resources,
both the oil and gas. However, the proposal put forth on the other side
allows for some untested technology to be used in sensitive areas of
the Arctic over the opposition of some of the Native people and
virtually every elected official in Alaska.
What I am concerned with here is the realization that currently this
legislation does not exclude another route, which would be a route over
the top, across Canada. Most of those jobs and most of that activity
would benefit Canada and not the State of Alaska, nor American labor.
I remind my colleagues, the gas in question is owned exclusively by
the State of Alaska. This is not Federal gas. This gas is on State
lands associated with the fields at Prudhoe Bay which are on State
lands. Unlike discussions about leasing of the so-called 1002 area--
that chart is behind this one--the Coastal Plain where the subject of
Federal lands is the issue, the issue involving gas is strictly on
State lands and is an issue of the State's ability to develop and
transport a resource owned exclusively by the State and not the Federal
Government.
As a delegation, Senator Stevens, Representative Young, and I have
worked with the Governor and Lieutenant Governor and our Native
population and others to ensure that any proposal fully protects the
interests of our residents, the environment, and the state of our
economy. So it is important to have a proposal that meets, if you will,
our wishes relative to what is in the best interests of the State as
well as our Nation. Our Nation, again, is pulling its gas reserves down
faster than we are finding new reserves.
Furthermore, the project that has been proposed has some problems
with it because the producers of the gas--namely, Exxon, British
Petroleum, and Phillips--have indicated at the current prices the
project is uneconomic at this time. We have a situation where, to make
it economic, we are going to need some assistance. What I am talking
about is how we can work to come up with a methodology to take some of
the risk out of the movement and development of this project because
this will be the largest and most expensive construction project ever
undertaken in North America. We have to be careful that it stimulates
the United States economy and not the Canadian economy, and that we
recognize the contribution of American workers by keeping as much as
possible of this pipeline in the United States or Alaska.
What we have here, of course, among our critics are, for the most
part, people who have never visited the Arctic. They have never taken
an opportunity to go up there.
I will say Senator Bingaman has accompanied me up on occasion, where
we had the Secretary of the Interior. We got a lot of fresh air. It was
cold. But, nevertheless, I think we were given an opportunity of having
extended hospitality by the Eskimo people, as well as seeing some of
the highest technology in the oil and gas business underway.

It is my intention to offer significant amendments to this gas
provision to make sure that the development of Alaska gas is done in
the most environmentally sensitive way as possible. That mandates the
selection of the southern highway route. I intend to work closely with
my colleague, Senator Bingaman, on these amendments. And I certainly
appreciate his support.
There is another area, however, where we have some differences. I
would refer to some of the statements that I have heard. I am not going
to go into ANWR in any detail. But I think it is important that we
reflect on a few things that are in the minds of some.
We have a chart that shows what happened to our imports of oil when
the Trans-Alaska pipeline from Prudhoe Bay to Valdez was built. We have
heard critics and environmentalists suggest that the impact of ANWR
would not have any significant effect on oil imports into the United
States. It shows the barrels of oil per day that the United States
imports. In the time frame between 1977, 1978, and 1979, imports
clearly were up. Then the 2 million barrels a day came down from
Alaska. You see TAPS opens at the top, and imports begin to drop
dramatically. The reason our imports dropped is the market for oil
didn't decline. It was because of the contribution by Alaska's domestic
production.
The point of this chart is a very simple one. It simply shows that
when you produce more oil of the magnitude of a million barrels a day,
it has a decided impact on reducing imports.
You see this period from 1982 through about 1987, and then imports
start to climb up again.
Where would we have been if we didn't have the Prudhoe Bay
contribution? That is my point. It would still be going off the chart.
The chart in red clearly shows the import vis-a-vis Alaska production.
The blue line shows Alaska production coming on line and it beginning
to decline. It would not decline if ANWR were opened.
We also have statements by various individuals that are made from
time to time relative to the effects on drilling in Alaska, and the
impact that it would have on various areas of concern.
I am going to refer to a couple of those because I think we need to
shed some light on it.
I can only defer to those who have indicated some position on the
issue of opening up the Arctic to oil and gas exploration. I would like
to, first of all, refer to comments that were made by my good friend
from Massachusetts, the junior Senator, who on MSNBC's ``Hardball with
Chris Matthews'' on February 26 of this year and indicated that:

The alternative to drilling in Alaska is several things.
No. 1, there should be drilling almost anywhere but Alaska.
No. 2, you can't drill your way out of the problem of the
Persian Gulf.

I think the last chart we saw indicated that by drilling our way
domestically we reduce our imports. I think that question has been
resolved. I think for the first one--drilling almost anywhere but
Alaska,--let us look at anywhere but Alaska.
Here is the chart of the United States. If you look at the gray
areas, you see the areas off limits for drilling: The entire east coast
from Maine to Florida, the area off Florida in the gulf, and then in
the overthrust belt--those areas which have been closed primarily
because of wilderness mandates. Colorado, Wyoming, and various other
States are limited. And clearly the west coast is off limits.

I wonder where in the world the oil is going to come from if we have
taken all of these areas off limits. Some suggest going to the Gulf of
Mexico off Louisiana. That is where a good portion of our exploration
is occurring. It is occurring there because of the technology. They are
drilling in 3,000 feet of water. The industry is doing an extraordinary
job. We have to go somewhere.
Then we have heard from time to time: Who wants to drill where?
Clearly, Alaskans propose drilling and support drilling in our State.
The point is, you have to get it somewhere. If you do not get it
domestically, you are going to import it.
As I have indicated, gas isn't the only resource our State can
contribute to America's energy security. The gas

[[Page S1512]]

will not fill the transportation needs of California, or some of the
other States as some have suggested. Only the development of a small
portion of ANWR can do this.
We have heard discussions on the issue of safety. We have heard
discussions on the issue of Prudhoe Bay--the amount of oil, the
timeframe, the wildlife, and the caribou. We are going to show you some
of the wildlife associated with the area as a consequence of good
conservation and the fact that these animals are not subject to
hunting. As a matter of fact, polar bear cannot be taken by a non-
Native in my State of Alaska because it is protected by the Marine
Mammal Act. If you want to take a polar bear, you can go to Canada, or
you can go to Russia, but you can't go to Alaska. I think that is a
pretty significant conservation of the polar bear.
You see pictures of the caribou behind me. You see pictures of bears
because they are not threatened. They are not shot. You can't run in
there with a snow machine and run them down.
Some would be surprised. I don't believe there is anyone here from
Texas. So I can make this statement without fear of reprisal. But
geologists indicate that ANWR holds more oil than all of the proven oil
reserves of Texas--all of Texas. I might add that Alaska is about 2\1/
2\ times the size of Texas. That would equate to 30 years worth of
Saudi Arabian imports. Engineers believe that it can be explored for
less than a 2,000-acre footprint. The union men and women of this
Nation believe it can create thousands of jobs. It can be flowing in a
few years--not 10 years. It is a matter of recognizing that if we want
to go ahead with it, we can issue the permits. We can do it safely.
Winter exploration will occur on ice roads.
Some suggest that it is a decade away. That is not factual. It is
unfortunate that some people who have never been there think they can
make decisions about the people who live there.
Unlike the plan that has been proposed on the other side of the aisle
about Alaska's gas, the plan to develop Alaskan oil will use proven and
tested technology. It will take advantage of existing infrastructure on
the North Slope. It will minimize the impact of Arctic environment. It
will have the benefit of a 7-year environmental impact statement. It
will limit the surface footprint to 2,000 acres, and it will require
the use of project labor agreements--labor that will prohibit the
export of any energy resource. None will be exported outside the United
States.
It is overwhelmingly supported by the delegations--Senator Stevens,
Representative Young, myself, our Governor, our Lieutenant Governor,
the State legislature, and the people of the area, the Innupiat Eskimo
people.
In conclusion, I realize that some in this Chamber regard energy as
just a political issue, pure and simple, with pressure from the
environmental community. It is just another piece of the puzzle that
has been laid out for us.
I think our last piece is to reach the bipartisan goal of coming
together and recognizing that this country simply cannot proceed with
its increased dependence on imported oil.
As a consequence of that, I think we have to be very careful to not
sell America's can-do spirit short, the American family, and America's
future. We must address the national security interests that our
President has directed us to do by coming up with a responsible energy
bill at this time. As a consequence, we have differences. But,
hopefully, we can work that out through a process of debate. We have
differences that we can undoubtedly address with regard to alternative
and renewables.

But make no mistake about it, we are not going to be able to get
there from here on any one alone. It is going to take all our resources
to meet our energy demands until we have significant breakthroughs in
technology that will allow us to lessen our dependence on our
conventional sources of energy.
Energy isn't about politics. It is about families, families across
this country wondering if their jobs are going to be there in the
morning. It is about preserving the very independence of this Nation
because I believe in a nation that is dependent on no one but God
alone.
I recognize the public policy debate about how best to approach our
energy policy. I know it is complex. I know it will involve issues at
the very heart of the extreme environmental agenda. Yet, at the same
time, I take issue with that environmental agenda because it suggests
that we can simply get there on conservation alone, and that is not a
realistic assumption.
At the same time, I think the issue can be framed rather simply. It
is better to have strong domestic energy policy--I use the word
``domestic''--that safeguards our environment and our national security
than to rely on the likes of a Saddam Hussein to supply this energy.
On September 11, we were importing a million barrels, just a little
over a million barrels a day, from Saddam Hussein. Today that is about
870,000 barrels a day. We bombed him twice this year, once just a few
days ago. We have put the lives of our young women and men at risk
enforcing that no-fly zone over Iraq. He attempts to shoot us down. We
take out his targets. But we take his oil. It is almost as if we put it
in our jet fighters and go over and take out his targets. He takes our
money and develops a missile capability. He pays his Republican Guard.
As a consequence, he remains a threat to world peace.
At whom is he aiming these missiles, this biological capability he
has developed? At our ally, Israel. When will we come to grips with the
likes of a Saddam Hussein as we continue to rely more and more on that
source, when we have a domestic source at home that we can develop
safely? The answer, in my mind, is clearly that we should reduce our
dependence on foreign oil.
We have a statement from an outstanding American who has indicated--
well, we will get it for the later debate. But we have a number of
statements of outstanding Americans who have indicated they believe it
is the worst mistake we could possibly make to continue our dependence
on imported oil.
Excuse me. I have a chart with a quote from Richard Holbrooke,
Ambassador to the United Nations in the second Clinton administration.
This was in the Washington Post of February 12. I quote:

Our greatest single failure over the last 25 years was our
failure to reduce our dependence on foreign oil . . . which
would have reduced the leverage of Saudi Arabia.

These are people who know what they are talking about.
Furthermore, I have to recognize the responsibility that we have in
this body to the President. President Bush has asked, time and time
again, for an energy bill. He has asked as recently as in his State of
the Union Address because he recognizes the urgent need for a national
energy plan. He knows energy is about jobs. He knows energy is about
security. He wants to protect this Nation from the Axis of Evil. He
knows that so long as we are dependent on other nations for our energy,
our very security is threatened and our future at stake.

So, Mr. President, our challenge is clear: To deliver to this
President an energy plan for our Nation and our Nation's future. That
is the job of this body. I have indicated, the House has done its job
by passing H.R. 4.
So I pledge my support to improve the legislation before us and get a
bill to the President as soon as possible. I urge my colleagues to
recognize the weight of the task before us, to push aside their
agendas, and to do what is right for the Nation.
Finally, in conclusion, I encourage Members to recognize that we have
contentious issues here in ANWR, in CAFE standards, in renewable
portfolio standards in electricity and perhaps several others. But I
encourage Members to use accurate information--particularly when they
are talking about my State, particularly when they are talking about
Alaska and having never visited there, and particularly when they are
expressing the litany of opponents such as some of the national
environmental groups who fail to address the question of whether we can
do it safely. The answer is clearly yes, we can do it safely based on
30 years of experience in the Alaska's Arctic.
Is it a significant supply? Some suggest it is 6 months. Obviously,
it is potentially as much or more than Prudhoe Bay, which has been 25
percent of the Nation's total production; particularly when they say it
is 10 years away, when it is only a matter of

[[Page S1513]]

a few years if, indeed, the oil is there; and, finally, to recognize
that when we passed legislation that would have opened ANWR in 1995, if
President Clinton had not vetoed it, we would have all this behind us.
We would know whether the oil was there. And if it was, it would be
flowing and reducing our dependence on imported oil.
So it is in our national security interests. It is in the interests
of American labor and American jobs to move forward with ANWR. I
encourage Members who have been lobbied heavily by America's
environmental community to recognize that they are going to be called
on to vote, to vote on the question of whether to appease and be
responsive to the environmental lobbyists, or do what is right for
America.
I will conclude with a reference to a statement made by a former and
respected Member of this body, Senator Mark Hatfield of Oregon, who
was, I might add, a pacifist--at least in the minds of many of us,
although we had the deepest respect for him--who said: I will vote for
opening ANWR any day rather than send a man or woman in our Armed
Services overseas to fight another war over oil.
I think that says a lot.
Mr. President, I yield the floor and look forward to the statements
of my colleagues who will be forthcoming throughout the day.
Mr. DASCHLE. Mr. President, the events of the last year have
highlighted what Americans have known since the 1970s, our economic
security and our national security depend on our energy security.
Americans need--and deserve--an energy plan that truly moves us towards
energy independence.
America's appetite for energy continues to grow each year. Today we
import nearly sixty percent of our oil. And the problem is getting
worse, not better.
Over the next 10 years, the United States is expected to consume
roughly 1.5 trillion gallons of gasoline, most of it refined from
imported oil.
We need to reduce our growing dependence on foreign oil. We need to
ensure the reliability and security of our energy supply. And we need
to do so in a way that is good for our families, our economy, and our
environment.
There is no doubt in my mind that we can do all of these things, if
we're willing to invest in new ideas, new technologies, and new
approaches to old problems.
As we begin this energy debate, I think we should keep in mind four
key goals. Any energy plan we pass should increase our energy
independence, it should be good for consumers, it should create jobs,
and it should be responsible, both environmentally and fiscally.
Nine committees have worked on this bill, and Senator Bingaman has
done an amazing job of coordinating input from so many committees and
so many Senators on both sides of the aisle.
In the end, he's put together a bill that meets each of these goals.
Opponents of this bill have essentially said that we face a choice
between production and conservation. This bill demonstrates that we
can, indeed, increase both.
First, production.
For a long time, we've looked for the ``Made in America'' label on
our clothes. We need to put that same ``Made in America'' label on our
energy, too.
That means increasing our domestic production. But it also means
recognizing the reality we face. We hold only 3 percent of the known
world oil reserves, and we consume 25 percent of the world's supply.
Even if we drilled in everybody's back yard, we could never meet our
own demand with our own supply.
One might call the assertion that we can drill our way to energy
independence, fuzzy math.
That's not to say that we shouldn't drill for oil and gas in the
United States; to the contrary, we can and we must.
But we cannot simply drill our way out of this problem, and we should
not be drilling in environmentally sensitive areas, such as the Arctic
National Wildlife Refuge.
Here is what we should do: We should look to develop natural gas
deposits in deepwater areas of the Gulf of Mexico, and allow for
increased production where it is environmentally acceptable.
We should explore for oil and gas in the National Petroleum Reserve
in Alaska, the area where the three largest onshore oil reserves in the
last ten years have been found.
And we should construct a pipeline to bring natural gas from Alaska
to the lower forty-eight states. There are 35 trillion cubic feet of
known natural gas reserves on the North Slope of Alaska.
Right now, we are literally pumping that gas back into the ground
because we have no way of getting it to people.
This 2,000 mile long gas pipeline would create 400,000 jobs, use an
estimated 5 million tons of US steel, and ensure that we do not become
dependent on imported liquified natural gas from the middle east. If we
want to create jobs, increase our energy security, and help the U.S.
steel industry, then building this pipeline is the way to do it.
Energy for America, jobs and opportunity for steelworkers, and no
damage to sensitive environmental areas, this is the type of pro-
development, pro-jobs, energy project we should be encouraging.
Others assert that we can dig our way to energy independence. Some
see coal as a panacea. Others see it as a dirty and unsafe source of
energy. But the choice between simply using more coal or less is a
false choice.
This bill says that we can use coal better.
It invests in new clean coal technologies, which are good for our
environment. In so doing, it will create jobs in an industry and area
that has been losing them, and will help guarantee the future of coal
in America.
Still, we need to recognize that drilling and digging simply won't
add up to independence if we don't find other fuel sources here at
home.
That is why this bill invests heavily in new and renewable fuels,
including biofuels.
For example, it will triple our use of ethanol, which is a clean-
burning, corn-based, renewable fuel.
It will help us harness the power of the wind, the sun, and the heat
of the earth itself with tax incentives to develop these sources of
energy, and to keep the energy produced affordable.
Recent analysis indicates that investing in these clean and renewable
energy technologies will create 1.3 million new jobs for American
workers.
More importantly, energy from these sources would come from American
farmers and producers, pass through American refiners, and fuel
American energy needs. No soldier would have to fight overseas to
protect them. And no international cartel could turn off the spigot on
us.
For all of those reasons--economic, security, and environmental--this
bill sets a goal of generating 10 percent of our energy from renewable
sources by 2010.
Some states are exceeding this goal already. There's no reason that
our nation can't meet it.
Our bill also invests in common-sense efficiency, and the new
technologies necessary to increase efficiency without making sacrifices
in performance.
Take air conditioners, for example. Two years ago, the Clinton
Administration issued a standard that would have increased the
efficiency of air conditioners by 30 percent.
Here is what that means: a 30 percent more efficient air conditioner
would save our nation from having to build the equivalent of 50 new
power plants and save Americans $3 billion in electricity bills.
Meeting that standard isn't a pie-in-the sky proposal or a crushing
new mandate for business.
In fact, Goodman Manufacturing Company, the second largest air
conditioning manufacturer in the United States supports this standard
and says that they can meet it with no additional cost to consumers.
As John Goodman, Chairman and Chief Executive Officer of the company,
said, ``[the higher standard] is just the right thing, and it's
something our industry can do to help.''
The Bush Administration revoked this standard, and the House-passed
bill doesn't include it. We think it makes sense, and that's why we
require it.
This bill will help us make similar efficiency gains with items such
as vending machines, commercial refrigerators, lights--even our power
lines.
As Senator Kerry has said so well, you just can't tell Americans
you're serious about energy security unless

[[Page S1514]]

you're willing to tackle transportation, where 70 percent of the oil we
purchase is consumed.
During the 1970s, America created a program to increase auto
efficiency. Those standards now save 3 million barrels of oil every
day. But because those standards were frozen seven years ago, our
vehicle fuel efficiency is worse now than it has been in twenty years.
So this bill says that automobiles and light trucks should average 35
miles per gallon by the year 2013.
This doesn't mean that we are going to take away anyone's SUV or make
every American drive a compact car.
It means that the car companies will do what they say they can do,
and increase the efficiency of the vehicles they make.
In fact, the National Academy of Sciences found that technology that
already exists can be used to improve the fuel economy of automobiles
and light trucks without affecting safety or performance.
When the fuel-efficiency provisions of the Senate energy bill are
fully implemented, they will not only save American drivers billions of
dollars--they will save our Nation the same amount of oil we are
currently importing from the Persian Gulf.
Finally, when it comes to energy efficiency, this bill says that the
Federal Government must lead by example.
Last year, the Federal Government's utility bill totaled $3.4
billion. This bill mandates that the government use cost effective
technologies that consume less energy.
This small step alone--one that is not a part of the House-passed
bill--will save taxpayers $250 million a year.
Doing all of this will be good for consumers and families, good for
our energy independence, and good for our economy.
Finally, this bill demonstrates international leadership on global
climate change--leadership that the Administration, sadly, has been
unwilling to show.
This bill links energy policy and climate change by creating a
national strategy to track and reduce carbon pollution and other
greenhouse gas emissions. It funds research and development on
innovative technologies to reduce carbon pollution, opens markets for
clean energy technologies, and demands high-level coordination and
leadership from the White House.
The science on this issue is clear. Carbon pollution and other
greenhouse gas emissions are causing changes in our climate, including
coastal flooding, agricultural disruptions and significant damage to
our ecosystems.
As the largest emitter of carbon pollution in the world, I believe
the United States has a special responsibility to help address this
problem. This bill does.
Now, we know what our opponents are going to say about this bill and
about our approach.
They are going to say that we are going to take away people's SUVs
and washing machines--we are going to ask you to sweat in the summer
and freeze in the winter.
They will try to tell you that this is a choice between abundance and
austerity. They couldn't be more wrong.
Actually, they are right about one thing--we do face a choice. It is
a choice between the past and the future, between a bill that is good
for consumers, or one that serves only the energy companies.
The energy bill that passed the House is based entirely on the old
philosophy of dig, drill and burn. The centerpiece of that plan is to
open the Arctic Refuge.
Supporters of drilling in the Arctic Refuge have used almost every
opportunity to justify their position.
When we were experiencing rising oil prices, supporters said it would
make oil available quickly and drive prices down in the process.
But even if Congress were to authorize drilling in the Arctic
National Wildlife Refuge today, we would not see significant quantities
of oil produced from the refuge for 10 years at the earliest.
When our economy began to slow, supporters began billing it as an
economic stimulus measure, saying it would create 750,000 jobs.
Yet that number comes from an outdated and biased study by the
American Petroleum Institute. Recent, more credible estimates by the
Congressional Research Service and others suggest that only 60,000 jobs
would actually be created.
And now, as we face threats to our nation's security, those same
supporters are wrapping their argument in the cloak of patriotism,
saying that drilling in ANWR is vital to increasing our energy
security.
But the oil there would only meet America's needs for less than 6
months.
Let me give you an example of how little oil that is: If we all put
replacement tires on our cars that were as good as the ones that came
with the cars when they were new, the resulting increase in energy
efficiency would save 5.4 billion gallons of oil--70 percent more than
the total amount of oil in the Arctic Refuge.
Compare that our proposed Alaska natural gas pipeline we have
proposed which would provide natural gas to American consumers for at
least 30 years.
The rest of the House bill is a smorgasbord of tax cuts for oil and
gas companies. The Republican bill includes $33 billion in tax cuts.
Twenty-seven billion of that goes to the biggest energy companies.
Perhaps even more astonishing is this fact: Because the House bill
fails to make meaningful reductions in the transportation sector and
relies on getting oil from a source that would produce so little and so
far in the future, if we enacted it into law today, it would actually
increase our dependence on foreign oil.
The House plan may indeed be an energy plan for a new century.
Unfortunately, that century is the 1900s.
Our bill takes the better path--for our energy security, for our
economy, for our environment, and for our future.
Now, there is one other thing we're hearing from the other party, and
it is the complaint that this bill was not subject to a markup in
committee.
I find this complaint to be ironic for two reasons.
First, it is not at all unusual to take a bill directly to the floor.
In fact, my colleagues might remember that the Republican leadership
did the exact same thing with a Republican energy bill--the National
Energy Security Act of 2000.
Second, now that we're debating an energy bill, some of my colleagues
seem more intent on debating how we came to debate this bill.
I made a promise to bring this bill up for debate. That is exactly
what I have done.
No one's right to be heard will be compromised.
Anyone is welcome to offer any amendment they choose.
I expect to have a full and open debate on this bill. The less time
we spend worrying about procedure, the more time we can spend debating
the direction and substance of our Nation's energy policy.
So, with that, I want to thank Chairman Bingaman and the other
committee chairs who have worked so hard to assemble this bill.
And I look forward to working with my colleagues on both sides of the
aisle in order to make progress on this vitally important piece of
legislation.
Mr. REID. Mr. President, we have had a number of calls in the
cloakroom from Senators who want to come over and give opening
statements. Others want to offer amendments. I am wondering if I could
ask the Republican manager, because I have cleared this with the
manager on this side, if we were alternating back and forth on the
statements--as I said, there are a couple of more statements at least
that people want to give this afternoon. It is going to take us into
early evening. It is my understanding there is something some Members
are interested in doing tonight. I wonder if when we get into the
amendment stage we could have an initial agreement that we alternate
back and forth on amendments on this very important legislation. That
is normally the way we do it. Is there any problem with that?
Mr. MURKOWSKI. Mr. President, it is my understanding we had reached
agreement on that earlier in our discussion, that we would go back and
forth as Members appear.
Mr. REID. On statements.
Mr. MURKOWSKI. And we would go back and forth on amendments. I ask
the Chair if that agreement has not been previously made?

[[Page S1515]]

Mr. REID. I apologize. I thought it was on statements.
The PRESIDING OFFICER. There is an agreement on the recognition of
the following two Senators: Senators Dorgan and Domenici, in that
order.
Mr. MURKOWSKI. I would not object to what has been propounded by the
majority whip.
Mr. REID. I would also say to my friend, so there is some order,
Senators Daschle and Bingaman have decided they will offer the first
amendment and then we will go to the Republican side. We will probably
not get to that until first thing in the morning the way the statements
are going.
I ask unanimous consent that in addition to the alternating of
opening statements on this bill that the amendments also alternate;
that Senator Daschle or his designee will offer the first one and then
go to Senator Lott or his designee, and so on down the line.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from North Dakota.
Mr. DORGAN. Mr. President, I listened to the comments of my colleague
from Alaska. He obviously feels passionately about this issue. I have
served with him on the Energy Committee for a long while. He studies
these issues carefully. He uses a prodigious number of charts when he
makes his presentations.
I noticed that he did say in his presentation that there is much in
this bill on which we can find agreement. He indicated there were a
number of areas of agreement. I know he stressed areas of disagreement,
but I think he also said there are a number of areas in this
legislation where there can be some broad agreement. I think that is
helpful.
At the start, however, I want to comment on the exchange between my
colleague from Alaska and the majority leader.
The majority leader brought this bill to the floor of the Senate for
a very important reason. It is not unprecedented. It was brought to the
floor of the Senate rather than being moved through the committee
first.
We all know the issue of energy security is more than just finding
additional supplies of energy. As a result of September 11, and other
concerns about the broader area of energy security, the majority leader
decided to bring to the floor the product of a number of different
committees of the Senate working on this issue of energy security.
This is about protecting America's nuclear power plants against
attack by terrorists. That is part of this bill. That is part of energy
security. So there are a series of things that were brought together,
including the work and the efforts by the Finance Committee dealing
with tax credits. That, too, is part of this bill.
The majority leader decided to bring this bill to the floor as a
product of a number of different committees, to work on all of these
issues on the floor of the Senate, so all Senators would have the
opportunity to address these issues.
It does not shortchange the Senate to adopt that approach. It has
been done before. It is not unprecedented. And the majority leader did
not make a mistake in doing so. I think he advanced the interests of
the energy bill and advanced the interests of the debate about energy
in this country by adopting this strategy, despite the fact that some
of my colleagues think it was the wrong thing to do. I respect their
opinion, but they are just flat out wrong.
We are here in the Chamber dealing with energy. That is where we
ought to be. This is an important public policy issue for this country.
The bill that has now come to the floor has the combined input of many
committees, which is as it should be. We ought not deal with these
issues incrementally.
I say that, because I know the majority leader has been criticized by
some for this approach. The majority leader has done exactly the right
thing and has done it at the right time. He kept his word in bringing
this bill to the floor, so we can have an open and full debate on all
of the issues that affect this country's energy future.
This is probably not the most opportune time to debate energy. Timing
is everything, of course. This morning I stopped for gas on my way to
the Capitol Building, and it cost $1.08 per gallon. In high school,
when I was pumping gas at my father's service station, I was pumping
gas for about the same price--actually slightly more in real dollars
than we are paying today for a gallon of gasoline.
The current price probably does not promote great urgency among the
American people that we must have a new energy policy now. Most
Americans understand, despite the fact that the price of gasoline is
very moderate at this point, that we have a very tenuous existence with
respect to our economy and its dependence on a continued long-term
source of oil from places such as Saudi Arabia, Kuwait, the Persian
Gulf, and Central Asia.
It is foolhardy for us to continue betting our future economic
progress on a sustained supply of oil from the Middle East. We need to
do better than the increasing reliance year after year that we place on
that supply of oil. It doesn't mean perhaps that we can ever--or
certainly not in the short or intermediate term--shut off that oil or
find replacements. I am not suggesting that. But I am saying that the
relentless march to increase our dependence on foreign sources of oil,
especially on energy coming from the Persian Gulf, is not a very smart
policy.
Let us determine how we can, together, Republicans and Democrats, in
good public policy, begin to ratchet that back down, so we have less
dependence on foreign sources of energy.
How do we do all of that? We will hear many statements about many
facets of this energy policy. There are as many ideas about good energy
policy as there are Members serving in the Senate. Emerson once said
that common sense is genius dressed in work clothes. Common sense is
what we need in putting together the components of an energy bill that
work.
Simply, do we need to produce more energy to meet future energy
needs? The answer is yes. We need to produce more. Let's do it in an
environmentally sensitive way. So produce more in an environmentally
sensitive way, No. 1.
No. 2, do we need to conserve more? Yes. We waste too much energy.
Let's do that in a thoughtful way.
No. 3, can we achieve greater efficiency with all of the appliances
we use every day in every way in this country? Yes, of course. That
also is an element of conservation.
No. 4, and finally, turning to limitless, renewable sources of
energy. That makes sense for this country as well.
These policies combined will help wean us from the overdependence on
foreign sources of energy, help us develop additional sources of energy
at home, and also help us become more efficient and more conservation-
minded as we use energy.
Now, more than ever, we understand this is not just about energy
security, but that energy security is about national security. That has
to be part of this debate. Reducing our dependence on foreign oil and
better protecting our energy infrastructure, that is about national
security.
Financial assistance in this bill would help improve critical energy
infrastructure security. That is a part of this legislation that is
very important.
This legislation will increase domestic oil, gas, and coal
production. It will do that in a thoughtful and environmentally
sensitive way. It will help remove barriers to production on public
lands in an environmentally sustainable manner, and it will authorize
the construction of a natural gas pipeline from Alaska to the lower 48
States, helping to create hundreds of thousands of jobs and, more
importantly, helping us move an estimated 32 trillion cubic feet of
reserves of natural gas that exist in Canada, reserves that are leased
and that can come into our inventory, when we are able to build the
pipeline. That pipeline authorization is in this legislation.

This bill will promote research, development, and deployment of
advanced clean coal technologies, something very important, including,
especially, opportunities for lignite coal, because coal is going to be
a part of our energy future. Lignite coal is a significant part of that
opportunity as well.
One of the questions for us when we finish this debate will be: are
we going to see the future through a rearview mirror? Is our energy
policy a policy of yesterday forever? We have some who will come to the
floor who will say: I have a new idea. Let's just drill and dig for
more oil and coal.

[[Page S1516]]

What I say is: we support that. We need increased production. But if
our strategy for tomorrow's energy supply is simply drilling and
digging, that is a strategy of yesterday forever.
We had someone from the Energy Department testify before the Energy
Committee. I asked them a simple question that we similarly ask about a
lot of programs. On Social Security, we ask the question: What will be
the stability and the financial circumstance of Social Security in 25
or 50 years? Can you tell us what is going to happen 50 years from now?
So we do charts and graphs and create the financial mechanisms to
evaluate whether we will be on safe ground in 50 years with respect to
Social Security.
I asked the Energy Department officials: What is your plan for 35 and
50 years from now with respect to energy? What kind of energy will we
be using? What will be the energy mix? How much will we be using?
The answer was: We don't have a plan.
The reason I asked the question was, I was trying to determine, are
we going to wean ourselves from this overly dependent need for foreign
sources of oil? Are we going to move toward technologies that will
change our use of energy, our need for certain kinds of energy? Have we
decided as a country, for example, if we want to change to a goal of
deciding that in 50 years we want fuel cell cars driving on the streets
of the Nation's Capital and all across the country using oxygen and
hydrogen and throwing water vapor out the back end? That sounds like a
pretty good deal to me.
The Energy Department's answer was: We don't have a plan. We will get
back to you.
My response was: We need a plan. America needs to decide its energy
future, what it intends to do to with respect to energy supplies in the
long term.
If we do what some of my colleagues counsel at this point, we will be
back here 25 years from now, and we will have exactly the same debate.
People will wear the same color shoes and shirts and suits, and they
will stand up and use the same tired, worn arguments.
The solution 25 years from now? Dig more and drill more. This debate
doesn't change. Only the calendar changes. The people change. You could
have read this debate 25 years ago. You will be able to read it 25
years from now, unless we decide we are going to do some things
differently.
My first car was a model T Ford that I restored as a young boy. It
was a 1924 Model T Ford that I bought for $25. It was in an old granary
and had not been driven for decades. The rats had eaten off the seat
covers and all the wiring. It was a tin shell with an engine that
didn't work and tires eaten off and rotted off. My father owned a
service station, so I pulled it in and put it up on a hoist. I worked
on it for nearly 2 years. I restored that 1924 model T Ford. It was a
great thing to do as a high school boy.
Then I got interested in girls and decided a 1924 car was not the
thing, and so I sold it--much to my regret. I have regretted that sale
ever since. I got myself a new two-door car for a couple of hundred
dollars.
My point about the Model T Ford is that you put gasoline in that 1924
car exactly the same way you put gasoline in a 2002 car. Everything
else in our lives has changed. Everything has changed around us, except
you drove a 1924 Ford up to the gas pump the same way you drive a 2002
Ford up to the gas pump. You take the cap off, you stick the hose in,
and you start pumping. Seventy-seven years later, nothing has changed.
Should it? Will it? The answer is, yes, if we decide as a matter of
public policy that we want to put in place energy policies that will
advance a different kind of energy future in this country.

Now, let me talk a bit about some features of this bill that I think
are very important. This bill contains a series of goals that I think
almost everybody would or should agree with: To ensure adequate and
affordable supplies of energy from renewable sources, as well as oil,
gas, coal and nuclear; improve the efficiency and productivity of
energy use, including energy reliability and productivity of
electricity; and to improve energy use in industry vehicles,
appliances, and buildings.
I am particularly interested in renewable energy. Last week, I
brought up on the floor of the Senate the 5-year extension of the wind
energy production tax credit. That tax credit expired at the end of
last year. The result of Congress allowing that to expire means
projects are put on the shelf that are ready and funded. They are put
on the shelf. There is a company that has a 150-megawatt project for
North Dakota. They have the money for it--$150 million. The project is
ready to be launched. However, the company shelved the project until
Congress passes the extension of the wind energy production tax credit.
That makes no sense. But taking energy from the wind with highly-
efficient, new wind turbines and producing electricity, and putting it
on lines and moving it across the country makes great sense to me.
On transmission issues, we have new technologies, such as the
composite conductor technology, which can double or triple the
efficiency of existing transmission lines. Putting up a wind turbine,
producing electricity from this turbine, and transmitting that
electricity makes great sense. I come from a State that is No. 1 in
wind. The U.S. Department of Energy says North Dakota is the ``Saudi
Arabia of wind.'' The potential to develop wind energy from my State is
exceeded by no other State. We are last in trees. North Dakota ranks
50th in native forest lands. But it ranks first in wind.
So, we want to put up some wind towers in North Dakota and be able to
move some of this energy around the country. Renewable, limitless
sources of energy--that makes good sense to me.
What we have now is all of these projects that are stalled, because
Congress has not done its job. This bill contains a five-year extension
of the wind energy production tax credit. And while I support it in
this bill, I would like to get it done apart from this bill because, as
we know, when we complete the bill in the Senate, we will be in
conference with the House. This will take months.
My colleague from Wyoming, the other day, said--after I gave this
presentation on extending the wind energy production tax credit--he
said, yes, but we are taking that up as part of the energy bill. That
is of little solace to me. It will be months and months before this
energy bill is completed. Meanwhile, projects in many States will
languish on the shelf when, instead, those projects should be helping
to create jobs and energy.
With respect to electricity, I have just described the reliability of
the transmission grid and the opportunity in this legislation to help
facilitate access to and reduce constraints of the grid. This bill will
help create a more seamless and national grid, and it will help States
like North Dakota use its vast resources, such as coal and wind, to be
able to move electricity around the country.
We also are going to repeal PUHCA and PURPA in the context of this
comprehensive energy bill, while we will still retain sufficient
consumer protections and safeguards, which are included in this
legislation as well.
And, this bill is going to facilitate energy production and
transmission on tribal lands.
It also includes measures to research and deploy transmission
technologies--which I am very high on--including composite conductor
wire that can dramatically increase the efficiency of existing wires to
improve the efficiencies of existing lines and alleviate transmission
bottlenecks.
We are going to hear a lot about the energy efficiency of appliances,
such as residential air conditioners. We put into this bill what is
called a SEER 13 standard with respect to air conditioners. This bill
contains a number of provisions designed to save energy in buildings
and save energy with more efficient appliances. The SEER 13 air
conditioner standard would save an amount of energy equivalent to that
produced by nearly 70 power plants. This standard also would save $3.6
billion in electric bills for consumers over a 12 SEER standard.
The Energy Department received more comments on this standard than on
any other rulemaking in the agency's history. The vast majority were in
support of this 13 SEER standard, and that is why we have put this
standard

[[Page S1517]]

in the bill. This bill contains Federal building performance standards,
too. It requires the Government to purchase energy-efficient products,
among other provisions, because the Federal Government is the single
largest user of energy in the United States.
I want to talk for a moment about transportation, which is the sector
in which we consume the most amount of energy in this country. If you
look at the demand for energy, you see that the transportation sector
is where the largest demand occurs and where that demand is increasing.
My colleague, Senator Bingaman, has used this chart on a good many
occasions. There will be a debate in the Senate on the issue of CAFE
standards. I come from a State that uses pickup trucks, SUVs, and four-
wheel-drive vehicles extensively. It is not a convenience for someone
in a northern State, which experiences rough weather, to need a four-
wheel drive. These vehicles also are not a convenience for people that
are out there operating a ranch, a farm, or living in a small town and
are 50 miles from a hospital. It is not unusual for these people to
want to drive a vehicle with some weight, a vehicle with four-wheel
drive. I don't think any of them want someone to tell them they can't
do that.
We can't address energy without addressing efficiency and without
addressing the opportunity to make this transportation sector more
efficient. So, some say, let's go to the old CAFE standard. I happen to
prefer a pull rather than a push. Some say, let's push to 37 miles per
gallon or whatever number that is being used today. I think we ought to
say to consumers that we are going to empower them when they buy their
vehicles. We are going to give them a very substantial tax credit to
purchase more efficient vehicles--a per car credit of $4,000 or $5,000
depending on the value of the car.
So, a consumer would be able to go to a car dealership, knowing that
such a credit would only exist if he or she were to buy a car that
meets certain efficiency standards. If one manufacturer is not making
that type of car, then the person would be able to go to another
manufacturer.
I want to ``pull'' manufacturers to be making the kind of products
that consumers would want to buy, given certain tax credits. But I
don't want people, because of where they live, or because of their
needs, to be penalized, if they drive a four-wheel-drive pickup truck
or SUV. We are going to debate that. So, I will have more to say about
that in the future.

We have a difference of opinion on whether we should provide a
legislative push or pull. I believe that our future with respect to
vehicles is to be able to expect that we will see the manufacture of
more hybrid vehicles and hydrogen-powered fuel cell cars. I drove a
demonstration car on the Capitol grounds, which was running on oxygen
and hydrogen, and it was emitting water vapor out the back end of the
car. That is the future. But we won't get to that future unless as a
matter of public policy we pull very hard in that direction. Otherwise,
we will be consigned to yesterday forever. We will keep doing what we
have done forever. The past is our future. That is not what I want for
an energy policy.
If that is going to be the end of this debate, we should not have it.
If this is going to be the same debate we had 25 years ago--the names
have changed on the floor of the Senate--but if this is our debate,
then it is a thoughtless debate. This country needs to understand it
has a world class economy, the strongest economy in the world. It uses
a substantial amount of energy. That use continues to increase.
We are overly dependent on foreign sources for that energy,
especially from areas of the world that are inherently unstable, and we
would do well to remember that--especially now more than ever.
There are some who say, well, that is all really interesting. You
folks who talk about renewable and limitless sources of energy, that is
really great because, they will say, look at this chart. Look at the
renewables used in the United States, compared to other countries. We
are not doing much.
It is a very small part of our energy supply. They will say, you are
focusing on the mouse in the corner rather than the lion at the door.
The fact is, this country has the opportunity right now to describe
an energy policy that really does turn the corner and move us in a very
new direction. If we are moving in the right direction at the end of
this debate, then we will have probably passed the kind of bill that
was brought to the floor of the Senate and perhaps even have improved
upon that. Then we will especially be able to say: We are doing
something different.
Think about this. I just described that, in over 75 years, nothing
has changed with respect to the way we put a gas hose in a 1924 Model T
Ford versus a 2002 Ford Explorer--nothing. Think of this country. We
have, as people, written, split the atom, spliced genes, cloned
animals, and invented radar, the silicon chip, and plastics. We have
built airplanes and learned how to fly them. We have built rockets and
flown to the Moon. We have cured polio and smallpox, and invented the
telephone, television, computer and the Internet. And now we are
hearing from some that perhaps, as a new energy policy, we must just
adopt the same old energy policy and put it in place for the next 25
years. That is the legacy we want for our country? I do not think so.
Our country will go much further, if we summon our manufacturers,
scientists, and geniuses to work on this problem in the context of
national security needs.
I indicated at the outset that this might not be the best time to
debate energy policy, because gasoline only cost $1.08 a gallon this
morning. When gas is $1.08 a gallon, there is not a lot of urgency for
change. A year and a half ago, we experienced some rolling brownouts
and blackouts, and price spikes in California. We had a lot of
problems. There were a lot of reasons for those problems.
At the moment, though, there does not seem to be a sense of national
urgency. When gas is $1.08 a gallon, there is just not that kind of
urgency. As I said, I was thinking of this old country western song:
``When gas was 30 cents a gallon, love was 60 cents away.'' When I was
pumping gas at my father's service station many years ago, it was 30
cents a gallon. In constant dollars, gasoline costs about the same now.
In fact, it is slightly cheaper now.
We must, it seems to me, take the product that Senator Daschle and
Senator Bingaman have brought before the Senate, and work on this with
an eye toward dramatically improving this country's energy future.
This Earth, according to scientists, was formed somewhere around 4.5
billion years ago. Some say that in the first nearly 4.499 billion
years nothing happened, but that in the last million years, man
invented use for his arms, legs, and his cave and, in the last 10,000
years, he invented language, tools, the wheel, fire, primitive warfare,
and agriculture. Five thousand years later, he invented recorded
history and chariots. In the past 500 years printing occurred, the
steam engine was invented, and the industrial revolution occurred. But
nearly everything else has been invented in a very short period of time
the last 100 years or so. Yet, we tend to think that our existence on
Earth is the only existence; that this Earth was placed here for our
convenience.
If we take the long view of energy policy, we will understand that
this is not the case. The long view of energy policy says: Let's change
what we are doing. Yes, let's produce more; but, let's also disconnect
in the long term and pay more attention to opportunities for limitless
and renewable sources of energy. Let's have real conservation, real
efficiency, and let's, as a nation, understand that energy security is
part of our national security.

I thank Senator Bingaman. Serving on the Energy Committee has been a
source of pleasure for me. These are very interesting and important
national issues. Senator Bingaman, Senator Murkowski, and many on the
Committee have exhibited great passion about these issues. I chided
Senator Murkowski for the number of charts he used today. It simply
shows the depth of his passion, and I respect that.
Senator Bingaman has, with quiet, effective leadership for a long
period of time, worked to bring before the Senate a bill of which we
can be proud. I say to him how much I appreciate his work.

[[Page S1518]]

The Energy Committee has been, from time to time, a divided
committee. At other times, we have worked closely together. The men and
women who serve on the Energy Committee are good thinkers. They come
from different parts of the country and combine to bring to the center
a good, interesting, and aggressive debate about these issues.
As I indicated, I have great respect for those with whom I may
disagree. But there is no more important policy we will debate this
year that will have ramifications for decades and decades into the
future than this energy bill. I am pleased we can finish our opening
statements and go to amendments. I believe we will start on amendments
tomorrow.
I thank the Senator from New Mexico and the Senator from Alaska for
their earlier statements. I yield the floor.
The PRESIDING OFFICER. The Senator from New Mexico. I believe under a
previous order the Senator from New Mexico is scheduled to address the
Senate.
Mr. DOMENICI. Madam President, are there other Senators waiting to be
heard? I will not be long; maybe 7 to 10 minutes. I thank the Chair for
recognizing me.
Madam President, I am pleased we are finally beginning to debate a
very serious subject and that we have put together a bill that is
before us that perhaps after a couple of weeks of work will be known as
the Senate's comprehensive energy policy for our Nation.
As President Bush has repeatedly said, this issue is a vital
component of our homeland defense and our national security. Our
economic and our environmental future is directly tied to our ability
to produce ample supplies of clean, reliable energy. There can be no
doubt that this great Nation, which has achieved the most significant
heights in terms of material wealth and material well-being, has done
that because we have been able, principally with our American private
sector and competition, to supply the kinds of energy that are needed
for this enormous growth that affects each and every family as they go
about their daily lives, as they live in their homes which have heat,
which have cool air in the summer, which have kitchens with all kinds
of appliances to get done what they want for their families and enjoy
life.
In a very real sense, America's future is tied to whether or not we
are smart enough to do the right things or, in some instances, to do
nothing so that we can continue to have this supply of energy that we
need for our future.
Everyone knows that without an adequate supply of energy, our modern
standard of living would plummet. Long-term recession and major job
losses would be the norm. In fact, America would not be the America it
is today in a decade or two if, for some reason, we did not have
adequate energy supplies.
We saw the impact sometime back from oil shocks and their devastation
to our economy, but remember that the shock in the 1970s occurred when
we were little more than one-third dependent upon foreign nations for
our oil. Yet we had an enormous shock. Now we are nearly 60 percent
dependent on oil.
This underscores the importance, in this Senator's opinion, of moving
forward with an energy plan that the President will be a partner in and
that the President can sign, and with his intervention from time to
time that we can altogether say we have produced an energy plan,
bipartisan in nature, under the leadership of our President.
The policy that we have must set forth the principles, should be the
guideline, for our debate on a comprehensive energy policy. That is the
policy the President put before us.
Specifically, that policy noted that through conservation, more
production, and renewed infrastructure for distribution, the country
can overcome short-term energy shortages. In addition, we can build a
new approach to energy that will continue to increase the quality of
life in the United States and place us in the leadership role in
improving the quality of life around the world.
Conservation and efficiency clearly must be part of this
comprehensive energy bill. I appreciate the emphasis the President has
put in his policy proposals on these aspects of energy policy in the
United States, and I compliment Senator Bingaman. While I do not agree
with everything in the bill with reference to conservation, with
reference to saving of energy, the bill has some very good ideas in it
and I hope some of them will still be in the bill when we finish our 10
days to 2-week debate.
Conservation has been absolutely vital to the United States over the
past decades in controlling our thirst for energy. A lot of people do
not know we have done some very significant things in the area of
conservation--at least the numbers show that--so let me talk about
those.
Since 1973, our economy has expanded 126 percent while our energy
increase has been only 30 percent. That shows, in my opinion, we have
taken conservation seriously and we have already done something about
it. That does not mean we have solved all the problems in conservation,
that we have opened all the windows that can be opened to conservation,
but clearly we know how to do it.
I also appreciate the emphasis in the President's policy on
environmental protection, and that obviously finds itself in this bill
also.
I think we should remind ourselves and fellow Americans that we have
accomplished a lot. For example, again, since 1970 our emission of air
pollutants has decreased by 31 percent while our gross domestic product
grew by 147 percent and the amount of vehicle miles driven has
increased by 140 percent. When one looks at those kinds of numbers,
they know the United States has done a reasonably good job to date.
Even though there are many who are critical, it is obvious to this
Senator that if we can do again in the next decade or two what we have
done in the past decade or two with reference to these two areas, we
will indeed have a very good energy policy and a policy that will carry
us through in good stead.
Of course, there is more to environmental protections than just the
quality of air, which I have mentioned in terms of where we were and
what happened to our clean air. The policy the President proposes
carefully notes that modern energy exploration and extraction
technology can be done with minimal environmental impact. I hope those
who will listen to the debate and ultimately participate by virtue of
what they think their Senator should do and letting them know about
it--I hope everybody knows that modern energy exploration and
extraction technology can be done with minimal environmental impact.
I am proud some of these advanced techniques have been pioneered in
the State of New Mexico and are now ready to help in the exploration of
ANWR, if that be the will of the Congress and of the President.
Returning to our immediate task at hand, I am not at all pleased with
the way this bill got to the Senate, but I will not repeat what has
been repeatedly said by the Senator from Alaska. I think the issue that
divides us, ANWR, should have been voted on in committee. I think the
bill should have come with ANWR in or out, with the Senate having
debated it in committee and having voted. I believe if that would have
been the case, ANWR would be in the bill.
Now, which ANWR? Not the ANWR we talked about a couple of years ago.
The ANWR that is spoken of in the House bill, where a very small area,
2,000 acres, will be used to determine whether or not there is
sufficient oil to proceed. With the new technologies from that small
location, we will be able to determine tremendous information with
reference to what surrounds it and where, and we can determine as a
nation and as a people if we should proceed.

I believe we should have produced a bill that had all of the major
issues that are now in this bill discussed and debated in the
committee. On the other hand, I believe Senator Bingaman, who comes
with the first major bill I think he has managed--I would ask the
Senator, is that correct?
Mr. BINGAMAN. Yes.
Mr. DOMENICI. He will probably be here for 2 or 3 weeks managing this
bill. I believe those who know what happened will understand the
Senator did put in a lot of ideas and a lot of proposals that came from
our side of the aisle. To mention one, there are a

[[Page S1519]]

lot of proposals in this that are now reduced to statute form that have
to do with nuclear energy for the future. They were in a bill that I
introduced, along with the Senator from Louisiana who is sitting in the
chair, and some of those were taken--in fact, most of them--and are in
this bill that Senator Bingaman has brought.
I hope we will take all of the difficult issues that confront us and
not dillydally, but get them debated and voted on. ANWR is among those.
So is the CAFE standard. Let us get on with it. Let us proceed. Then
the entire provision on electricity--there is a very elaborate
provision that was put in by the distinguished Senator from New Mexico,
Mr. Bingaman, and we will have to decide whether that is what we want,
but at least the issue will be joined on another very important part of
this bill. So I hope we will proceed on some areas.
It is pretty hard to make the Senate proceed with dispatch when
Senators know they have an infinite amount of time on a bill. It will
be hard to get them to bring amendments, but there will be plenty of
them soon, and I look for myself to be participating, particularly on
the nuclear part of this bill, during which time I will share a lot
more with the Senate and those interested about why we should proceed
with nuclear energy, at least its availability, as part of the mix in
the United States for our future.
I yield the floor.
The PRESIDING OFFICER. The Senator from Louisiana.
Mr. BREAUX. Madam President, I thank the Chair for presiding in such
an effective fashion.
I will take a minute in the general debate time to talk about the
energy bill that is before the Senate.
No. 1, let me say I think we desperately need an energy bill. It sort
of goes without saying, if there is anything both sides could probably
agree with in what is otherwise likely to be a relatively contentious
debate, certainly we can all agree on the fact we need an energy bill
in this country.
The reasons are quite obvious. The United States prides itself in
being a very strong and powerful nation, probably the most powerful
nation on the face of the Earth, and perhaps the most powerful and
strongest nation in the history of the world. When it comes to being
self-sufficient in most aspects important to America, we are there.
When it comes to the food we eat, Americans produce more than we can
eat. In fact, we supply the food for a large number of countries around
the world. We do very well. When it comes to medicine, America is the
envy of the world. Pharmaceutical companies are the best. Medical
technology and science is the best in this country. People come to
America when they need very sophisticated, quality health care if they
can find a way to get to our country.
So in most all of what we do, including education, we are indeed No.
1 in the world, except when it comes to energy. The facts are the
opposite when it comes to energy. We are dependent on other countries
to help run America, whether it is running automobiles on the highways,
or the tractors in the fields, or launching a space vehicle with
another satellite, or running a naval vessel, or running a tank, or
supplying the men and women fighting in Afghanistan.
So much of the energy we use as a nation does not come from our
country. It comes from foreign nations. I have seen the number as high
as 58 percent of the energy we use in this country comes from foreign
sources. Not only does it come from foreign sources, unfortunately it
comes from countries on which we really cannot depend.
Our energy does not come from Canada. It does not come from people
who have been allied with the United States in most difficult battles.
Much of the energy supply comes from countries that themselves are not
particularly the most stable countries in the world, which means the
oil we get from them is not as dependable as it should be. Not only is
it coming from countries in a part of the world that is one of the most
dangerous, with the potential for those supplies being interrupted at a
moment's notice because of some additional conflict in the Middle East,
it comes from those countries through a process that, if it were
engaged in in this country, people would go to the penitentiary.

What I mean by that is quite simple. The Organization of Petroleum
Exporting Countries, OPEC, which supplies much of the energy and the
oil we use to run America on a regular basis, has meetings at very nice
places around the world. They bring in all of their oil ministers, they
sit around the table, and guess what they do. They fix prices. They
determine how much energy is going to cost America by sitting around
the table and deciding how much they will produce. If they think the
price is too low, they cut back their production, they raise the price
and sell it to the United States and other countries around the world.
Between 55 and 60 percent of our oil comes from parts of the world
that fix prices. If business men and women did that in this country,
they could go to the penitentiary because it is illegal to fix prices.
For years we have been comfortable with getting our energy from an
organization that, if they operated in America, would go to jail.
It is, therefore, abundantly clear we need an energy policy that
allows us to approach self-sufficiency.
I daresay if we imported half the food we ate in this country, people
would be marching on the streets in our Nation's Capital saying that is
unacceptable because food is critically important to this country's
survival. That is, of course, true. But equally true is that critical
to our Nation's survival and stability is the energy that we use. The
energy that we use to engage in commerce is also critical to the
security and the long-range future of the strongest Nation on Earth.
We can do no less than come up with an energy bill that addresses
this most serious of problems. For the most part, I think that the
energy bill before the committee is a movement in that direction. It
can be improved. I hope, through the amendment process, it will be
approved. We have to have a balanced energy package. We cannot be
putting all of our eggs in one basket.
I remember in the not too distant past when we talked about trying to
control the supply of drugs in this country. The popular phrase at that
time was ``just say no.'' It sounded good, but it only addressed half
of the equation. It addressed the half of the equation of the demand
side. If we do not have a demand for drugs, we will solve the drug
problem. It never really worked because we did not pay enough attention
to the supply side. We did not do enough to try to stop the flow of
drugs illegally into this country. The answer, obviously, was we had to
do both. We had to control the demand in this country and we had to
control the illegal supply to this country.

The same thing is true with regard to energy. We cannot just save our
way out. We cannot just rely only on alternative fuels. I have voted
for over $6 billion of assistance for alternative forms of energy. I
believe in it. I think we have to have renewable energy. We have to
have alternative kinds of energy. I hope we can develop wind as a
source of energy, as well as solar power. We need to also look at the
alternative of hydrogen cell fuel utilization. We have to look at waste
material, whether it is chicken waste, swine waste, or whatever have
you.
I guarantee you that in the foreseeable future we are not going to
run the planes of this country and the tractors on the farms with
chicken waste; it is not enough.
We also have to develop our traditional oil and gas resources. I have
heard some of our colleagues and I have heard some of the environmental
groups say we cannot drill our way out of this problem, as if we were
drilling everywhere. Just the opposite is true. The chart I have shows
the light orange areas where we can not drill. The entire east coast of
the United States of America, either through congressional actions or
moratoriums by Presidents, both Democrat and Republican Presidents, has
said we are not going to look for oil and gas from the State of Maine
down to the State of Florida. It is not quite ``drilling our way out of
it.'' On the other side of the country, from the Canadian border and
the State of Washington down to the country of Mexico, and all of the
areas between, through moratoriums or acts of Congress, they have said:
Don't do it here either.
All of this area is a potential source of oil and gas but because of
the opposition of the locals along the west

[[Page S1520]]

coast of the United States, we are not looking, we are not searching,
and we are not producing energy, much of which is consumed in their
respective States.
The west coast of the United States is off limits, the east coast of
the United States is off limits, and the eastern part of the Gulf of
Mexico, where everybody seems to want to send the offshore production,
off Louisiana or Texas, we will not worry; it is also off limits, as
well.
This Congress just engaged in a very bitter battle over a proposal by
President Clinton to lease sale 181 in the eastern Gulf of Mexico.
President Clinton made a compromise in the sale by reducing the area.
This administration reduced it by two thirds further, and we had a
knock-down, drag-out battle on the floor of the Senate to eliminate it
completely.
All of these areas are restricted: Don't do it here; not in my
backyard; do it somewhere else. And we continue to import over 58
percent of our country.
We need an energy policy. It should be balanced. And balanced does
not mean just wind, solar, and hydrogen cell use; it means a
combination. There will be efforts by the Senator from Alaska to
address some areas of interest in his State. I remember quite well back
in 1980 when we were engaged in debate on the Alaskan lands bill--1978,
1980. I was a Member of the House of Representatives, chairman of the
subcommittee that handled the Alaskan lands bill over in the House. We
produced a bill which said we were going to set aside a very large area
in the Arctic National Wildlife Refuge and we were not going to allow
any exploration in that Arctic National Wildlife Refuge except for one
particular area which was designated as section 1002 of that particular
part of the Arctic wildlife refuge. We said the Arctic wildlife refuge
would have about 19 million acres in it. We were not going to do
production in those 19 million acres, but we were going to reserve 1.5
million acres in section 1002 of the bill.

I was there when we wrote it. It was our intent to say at that time,
that one section of the 19 million acres we will look at and ask USGS
to do seismic work and come back to the Congress and recommend whether
we should proceed in that area or not. It is interesting. The New York
Times and Washington Post are totally opposed to what the Senator from
Alaska is attempting to do now. But do you know what they were saying
when we did this back in the 1980s? The New York Times said:

Alaska's Arctic National Wildlife Refuge . . . the most
promising untapped source of oil in North America.
. . . the total acreage affected by development would
represent only a fraction of 1 percent of the North Slope
wilderness.
. . . But it is hard to see why absolutely pristine
preservation of this remote wilderness should take precedence
over the nation's energy needs.

That was in the New York Times in 1987 and 1988.
The Washington Post had an equally strong comment about what we were
doing back in 1987 when we set up this process. They said:

But that part of the Arctic coast--

Meaning the coastal plains--

is one of the bleakest, most remote places on this continent,
and there is hardly any other place where drilling would have
less impact on the surrounding life. . . .
That oil could help ease the country's transition to lower
oil supplies and . . . reduce its dependence on uncertain
imports. Congress would be right to go ahead and, with all
the conditions and environmental precautions that apply to
Prudhoe Bay, see what is under the refuge's tundra.

That was in 1987. We are more dependent on foreign oil today than
when they wrote those comments and remarks back in 1987. They were
right then. They would be even more right if they said the same thing
today. But all of a sudden, this area has become something that no one
can even touch.
I understand when people say, ``Not in my backyard.'' I don't agree
with it because it is a national program, not just for one State. But
if you live in the neighborhood, you ought to be listened to more than
if you don't live in the neighborhood where the activity is going to
occur.
We are talking about activity in the Arctic National Wildlife Refuge,
the small sliver up there of 2,000 acres. The Governor of the State,
who is a Democrat, supports this activity, the two Senators who
represent the State support the activity, and the Member of Congress in
the House of Representatives who represents that area supports that
activity. I would add the Native Alaskans who live in the area also
support the activity.
So if you want to look to the people who are there and who are duly
elected to represent the people, they enthusiastically support the
amendment to be offered by the Senator from Alaska.
Maybe there is an environmental group sitting in a fancy office in
San Francisco that thinks: If we take this position, by golly, do you
know how many more members we can get? This will be our cause celebre
for the next 5 years. They love the issue, but I think their position
is not correct.
We just can't do it all in Louisiana. We are going to do our part. We
are going to do more than our part. We will continue to do so. This has
to be something that all of us participate in as a nation. We have to
have more savings. We have to have more alternative sources of fuel. We
have to have more exotic ways of finding energy through wind and solar
power.
But we also have to do what is necessary for a number of years to
come in balancing that with traditional oil and gas supplies. You
cannot say ``not here, not there, and not there,'' and solve the
problem.
For those who say there is not that much up there, No. 1, no one
knows how much is up there until we take a look, but the estimates we
have from the USGS and the industry say there is a sufficient amount of
supply up there to reduce our dependence and eliminate all our imports
from Saudi Arabia for the next 30 years. They are the largest exporter
of oil to the United States. We can eliminate their imports to this
country for the next 30 years as a result of that activity. That, I
suggest, is a very important part of our Nation's energy solution.
I hope we will have more time to debate this issue. I look forward
enthusiastically to doing it. I think the Senator from the State where
this would be involved has done an outstanding job of presenting this
issue to this body, and I hope we listen to his recommendations.
I yield the floor.
The PRESIDING OFFICER. The Senator from Alaska.
Mr. MURKOWSKI. Madam President, I wonder if the Senator from
Louisiana would comment briefly on the advancement of offshore drilling
off the State of Louisiana and the Gulf of Mexico. I understand they
are drilling in several thousand feet of water, and actually Federal
leases are being sold in excess of that? That technology in deep water
has risks, obviously, but the industry has an extraordinary record of
success.
Mr. BREAUX. I thank the Senator for the question. I will be brief. I
know my colleague is waiting to speak.
We have been doing offshore production in Louisiana in some of the
most fragile areas for over 60 years. I would argue with anyone that
this environment and this ecosystem down here is far more fragile than
the ecosystem in the Arctic National Wildlife Refuge on the Coastal
Plain. They have tundra grass that grows during the winter a couple of
inches high.
We have, down here, an abundant supply of fin fish, of shrimp, of
fur-bearing animals; it is a very fragile coastal wetland environment
that is incredibly productive. Every single wildlife refuge in
Louisiana has oil and gas production on it.
We have learned. We have learned by mistakes. We have benefited from
science. Now the activity and the way it is conducted is the state-of-
the-art technology. To say we have not learned a sufficient amount of
information to be able to apply that to an ecosystem that is not nearly
as complicated, not nearly as fragile, with much smaller numbers of
wildlife in existence, as in this area, I think is to ignore the last
60 years of balanced development that we have experienced.
I think we ought to learn from those mistakes as well as learn from
our positive accomplishment, and apply it in the area of the State of
the Senator from Alaska.
Mr. MURKOWSKI. I wonder if the Senator will yield for another
question. I notice there are some charts behind the Senator from
Louisiana relative to what is going on in refuges. I think

[[Page S1521]]

there is a presumption among some that refuges are off limits to oil
and gas, other exploration. My understanding is that chart shows the
number of activities in various wetlands.
Mr. BREAUX. The wildlife refuge law was specifically set up by
Congress to protect an area that had specific significance. But other
activities that were compatible were to be allowed. You have to look at
each wildlife refuge and determine whether that activity is compatible.
Is farming, grazing, or oil and gas development compatible with the
purposes of the refuge? In my State of Louisiana, 12 wildlife refuges--
Federal wildlife refuges and State wildlife refuges--have oil and gas
production, in a much more fragile environment than is on the Coastal
Plain of the Arctic National Wildlife Refuge. In addition, all these
other States have had the same activity in their wildlife refuges and
it has been determined that it has been compatible.
Do you take special precautions? Absolutely. But the point is, it is
not a blanket prohibition. What is being asked today is a blanket
prohibition, which I think is not justifiable, particularly when we
have as strong a need as we do.
Mr. MURKOWSKI. I believe the other chart shows all the specific areas
and refuges that are identified by State. It looks like Texas,
Oklahoma--a number of States.
Mr. BREAUX. I think also these are national wildlife refuges. There
are a number of State wildlife refuges that States have set aside that
also have production on them as well.
Congress set this up, as the Senator well knows--I helped write
section 1002 over in the other body--as an area that was going to be
looked to for potential exploration. The remaining 19 million acres in
the rest of the wildlife refuges in ANWR was going to be set aside for
no activity. But Congress specifically made a decision: Look, we are
going to reserve section 1002 for potential exploration and production.
That is exactly what the Washington Post and the New York Times were
commending Congress for at that time.
When President Jimmy Carter signed this bill, they knew that section
had been set aside for the purposes of looking at potential oil and gas
exploration. Now, all of a sudden, we come back and say: No, we just
can't touch it. I think that is not being fair or balanced.
Mr. MURKOWSKI. I thank my friend from Louisiana.
The PRESIDING OFFICER. The Senator from Idaho is recognized.
Mr. CRAIG. Madam President, let me first and foremost associate
myself with the words of the Senator from Louisiana. I think he has
made such a very clear and profound case that with the technologies of
today, with what we now know and what we have learned in the wetlands
of Louisiana or Texas and on the northern edge of Alaska, without a
doubt we can now explore and develop oil reserves with little to no
environmental damage to the surrounding areas; that when those oil
reserves have been finalized or produced out, we can close out and
leave, and Mother Nature begins the healing process in a way that
within a reasonable, if not short, period of time our presence there is
hardly known.

I guess I would be remiss today if I didn't say I have looked forward
to this time in the Senate for a long while. I had hoped that years ago
we could have debated and developed a national energy policy. I am
quite confident that the chairman of the committee, who is here on the
floor, feels the same way as the ranking member. The Energy Committee,
on which I have served for 12 years, has literally held hundreds of
hearings and maybe thousands of hours in the taking of testimony as to
the character of the national energy supply of our country--where it
comes from, what it means, how it is used--everything from current
supplies of hydrocarbons to electrical production, coal-fired, hydro,
nuclear, on the thermal side of the electrical production, and
certainly oil production.
We have done really, I believe, a phenomenally thorough job of
looking at the overall perspective of energy for this country, both
under Republican leadership and Democrat leadership. I think it would
be fair to say that the staff of this committee and Members such as
ourselves have developed a level of knowledge and expertise that is
really substantial.
I say that in this context: That we are capable and should have been
allowed to let that committee work, under the chairmanship of Senator
Bingaman, to craft an energy bill to bring to the floor. But because of
the unique politics of today and the unique politics of the energy
debate that was denied, on October 9 the majority leader of the Senate
communicated to the chairman of the Energy Committee, who is now here
in the Chamber, that that committee was not to send forth an energy
bill.
We can all speculate as to that conversation, but I think it has been
relatively open as to what was said. Certainly the Senator from New
Mexico was quoted roundly in the newspapers. I will not in any way
attempt to interpret what he said or what he meant. But I know the
Senator well enough to know that prior to October 9, prior to the
August recess of last year, after we came back in September, and after
September 11, in the conversations I had with the Senator I believed he
was sincere and that it was his intent to produce an energy bill.
It has certainly been the intent of the ranking member, the Senator
from Alaska, to do so, and to build a comprehensive bill that this
Senate could look at, debate, and amend, but most importantly that
would be assembled inside the expertise of that Energy Committee with
both staff, Democrat and Republicans, and Members working on it, fine-
tuning through the amendment process, and ultimately coming to do the
floor for another bite of the energy apple, if you will, by other
colleagues who are not on that committee.
We now know that didn't happen. I must tell you I believe it is
historic in the fact that it didn't happen.
I have here in my hand the bill that was not written in committee and
that was not written through the normal process--some 539 pages. As I
came to the floor this morning to get a copy, I was told that portions
of it were still being written or rewritten because somehow they had
not quite gotten it right yet, or someone had made a change, or maybe
it was believed if they made a little change they might pick up another
vote or two in a given title of the bill. I don't know the reason.
But I do know that on the day when we began a historic debate on
national energy policy for this Nation, I had not had a chance to read
the bill in detail and it was still being written.

The 539-page bill we have before us S. 517. I am told it will have
another 40 or 50 pages added. OK; 579 pages. The Democrat whip is on
the floor. If he allows us to debate this for a couple or 3 weeks, we
might get it read, understood, and possibly crafted now in the process
which is legitimately a committee of the whole instead of a committee
of the authorizing to deal with national energy policy.
Am I angered by that? Well, I would like to be. I guess I am more
frustrated that in a representative republic and a democratic form of
government in which we craft expertise and talent in the committees of
authorization, it is simply and politically wiped away. The stroke of
the hand of the majority leader of the Senate says you shall not
because you cannot do it the way I want it done politically.
Before the August recess, if we had crafted a bill and worked on it
and passed it out of the Energy Committee, it would have had ANWR in
it. The votes were there. It would have been a bipartisan energy bill.
The House acted before the August recess. They narrowed what we now
call the footprint in the Arctic National Wildlife Refuge on which
exploration can take place to meet the political and maybe the
appropriate exploration needs for that area. They got their work done.
We knew we could. I don't think anybody would dispute the fact that
Democrats and Republicans were working to do so. The majority leader
was phenomenally fearful that his political will could not be
addressed.
Others on the other side of the aisle I think were quite confident
that they would have the political opportunity of a lifetime to
filibuster a bill with ANWR in it and to strut their environmental
stuff.
But something happened after September 11. A debate that in the minds

[[Page S1522]]

of many Americans on national energy policy was somewhat esoteric, a
future and generational economic exercise, had all of a sudden been
refocused. Our Nation was at war, we had been attacked, and the
American people asked: Are we so dependent upon a very unstable area of
the world that overnight those sheiks could turn down their valves and
up would go energy prices? Oh, my goodness, what would this country do?
It was no longer this esoteric and generational economic debate. It was
a debate over national energy policy in relation to national security
as a policy. Somehow they came together. As the World Trade Center
fell, energy policy and national security policy got melded together in
the minds of most Americans.
For those who wanted to filibuster over here on the floor, I am quite
sure they scurried over to the majority leader's office and said: Don't
throw us in that political briar patch, because we have to honor our
commitments, and we will somehow look anti-American if we stand up and
deny the right to explore and develop an abundant energy supply for our
country that may somehow make us less dependent upon the sheiks of the
Middle East.
I do not know if that conversation happened. But I will bet it did.
As a result, on October 9 the lights went out in this Nation's Senate
Energy Committee. No more were we to authorize a bill.
The lights went on in the back office of Tom Daschle because he was
being charged. He charged himself and the chairman of the committee to
send forth a bill. We have that bill on the floor at this moment. I
haven't read it because I haven't had it. It is still being written. I
can't read it. We will work to read it as soon as it is available. I
understand a new copy is under print. This is the first book I have
ever known of 539 pages in its second print in popularity and nobody
has read it. That is strange. The New York Times Best Sellers List
ought to try that one: You go to second print before the first one is
read. That is the reality of what we are faced with. We are here now on
the floor of the Senate, I would trust, in good will, to bring forth a
national energy policy for this country, if we can, in a way that we
can take to a conference between the House and the Senate, and then
place that bill on the President's desk for him to sign and for this
country and its economy to mobilize around.

One of first opportunities I had to engage with President George Bush
was when he was President-elect George Bush, right after the issue in
Florida had been solved. He was here on Capitol Hill to visit with all
of us. We met in then-Majority Leader Trent Lott's office. He talked
about his campaign promises: A promise to bring forth a comprehensive
education bill for our country; a promise to reform and cut taxes to
stimulate our economy and to affect all segments of it in a positive
and beneficial way. He talked about national security and a variety of
other issues. But he stopped midway through that conversation. He said:
Do you know what is really important for our country right now? It is a
national energy policy. The lights have gone out in California, we are
buying oil from a very unstable region of the world, and gas prices are
high. I believe a national energy policy is critical for this country.
That was President George Bush speaking, and I paraphrase.
He said: I am going to assign the Vice President that responsibility.
We will assemble a governmental task force, and we will craft a policy
and get it to the Hill as quickly as we can, and see if we can't work
with you here in the Senate and in the House to develop an overall
comprehensive policy.
It was one of this President's priorities, and he acted accordingly.
It should have been a priority in the Senate. It was a high priority in
the House. But here, months later than it should be, after the
authorizing committee had been turned away and its lights turned out,
we are now debating a bill that was a priority for the President, that
was our Nation's high priority, and a bill that many of us have not yet
read or understand all of the nuances or policy proclamations within
it. That is the reality of what we are dealing with.
I hope that as we debate this issue, and as we amend it over the
course of the next several weeks, we will deal with natural gas
exploration and development on public lands across this country, and
that we open up Federal lands to do that and put more of our own gas
into the pipeline as we talk about bringing gas down from Alaska where
it is currently being turned under, so that as we move toward other
forms of electrical generation with gas turbines that meet the clean
air standards of our country, we will have an abundance of natural gas
to do that at reasonable prices.
I hope this legislation will have that. If it does not, there will be
amendments to assure that the pipeline infrastructure that is necessary
to deliver that resource to the Nation will be there, be available, or
the incentives to do so will be allowed.
I hope that when we deal with infrastructure issues, we are able to
talk about electrical transmission and RTOs and regional ways of
transporting electrons from point A to point B, from New Mexico to
Idaho, if that is the wish of the generator and the user.
As the chairman knows, and as the ranking member knows, some months
ago we had a transmission expert before us. I think his words were
something like this: The electrical transmission lines of this country
today are like a bunch of country roads that every so often meet.

That was part of the problem in California when we, from Idaho, were
helping supply California to keep its lights on. You just simply could
not get energy there, or if you got it to California, then it plugged
up along the way as it headed from north to south or south to north. So
pipelines, transmission lines, infrastructure become an important part
of all of that issue.
For a good number of years I have worked on the issue of hydro
relicensing. In the Pacific Northwest, we are very fortunate to have a
dominant amount of our electrical generation by hydroelectric, or
water, dams. We know much of that has to be relicensed over the next
several decades, and that licensing process is broken or cumbersome or
unpredictable and very costly.
While we are trying to incorporate all of the concerns and issues of
many different groups in retrofitting and modernizing 40- and 50-year-
old structures, because the world around them and the wishes of that
world have changed dramatically, it should not take 5 to 10 years and
millions and millions of dollars and a reduction of capacity or
productivity of that unit to get it relicensed.
We want to answer and adjust to the environmental concerns. At the
same time, it ought to be our desire to make that unit more efficient,
not less so, with new turbines and retrofits. Yet we struggle under
that relicensing.
I have worked very closely with the chairman. We are awfully close to
getting something, but I am not going to add more problems to the
current problem. If we cannot get there, and the answer is to make it
more difficult or more complicated, I am simply going to step back and
say what we have got is what we are going to have to have.
If the country wants to keep on down this track of relicensing under
phenomenally expensive and cumbersome processes, tragically enough, so
be it. I hope, though, we can find a way out of this, to streamline it,
improve it, make it more predictable, balanced, and hopefully, less
costly.
Nuclear energy is 20 percent of our current electrical production in
this country. If we believe in climate change, if we believe there is
an environmental problem out there and somehow the gases that are
produced by the energy sources today are helping complicate or
exacerbate that problem of climate change, then we ought to be for the
cleanest source of energy possible to fill up that energy basket that
is now in deficit and growing more empty.
I believe one way of doing that is through nuclear energy and
creating new prototype reactors that by public perception and reality
are safer, more productive, less costly to build, and less costly to
operate. We ought to be about doing that. I think we are going to
reauthorize the Price-Anderson Act that deals with the liability of the
development and the operation of those facilities. That is something we
ought to do.
We ought to be encouraging all forms because my guess is a pretty
safe one:

[[Page S1523]]

That if we want an increasingly cleaner environment, probably over the
next decade or two nuclear energy, as a percentage of the total supply,
should not be 20 percent, it ought to be 25 or 30 percent. It most
assuredly ought not drop below where it is. It ought to advance well
beyond where it is.
I think most realistic thinkers would recognize the importance of
energy as it relates to nuclear and the cleanness of that form of
generation. We ought to apply the greatest technology we have to that.
I mentioned, in the context of nuclear energy, climate change.
Senator Hagel and I have worked for the last 4 or 5 years on that. So
has the Senator from New Mexico. So has the Senator from Alaska. Many
have become involved in that debate. The two Senators from Oklahoma
have been involved in it. Why? Because we do not want a hysterical
policy that shuts the world down in panic. We want a policy that would
allow us to grow and produce and prosper while making our world
cleaner.
The legislation the Senator from Nebraska and I have crafted, that
now in part has been accepted by the President as some of his forward
thinking national climate change policy, ought to be incorporated in
this bill, ought to be a full part of it. We are working to get there.
Frankly, it is possible to get there.
In conclusion, I began to debate energy issues well over a decade
ago. I have been involved on energy issues in the Senate for 12 years.
I am embarrassed to say that during that period of time we have not
built a comprehensive energy policy. I used to select different forms
of energy and suggest that this one ought not go forward, but maybe
this one should. I must say, I am no longer there, not at all. I
believe we ought to be investing in all forms of energy and all forms
of conservation.
We ought to give the public a choice between green power or other
power. Let them decide in the marketplace if that is the prudent
selection for their use. Clearly we ought to have as much power as we
can produce, recognizing that by definition, hydrocarbon use is on the
decline. I do believe, most sincerely, my grandchildren will be driving
electric cars. And they will be highly efficient and very capable of
traveling long distances. I also know they will have to have a place to
plug them in to put storage of electricity in the battery, or the
hydrogen fuel cell that will be built within the car that will drive
the electric motors that propel the car. That in itself is a
hydrocarbon.
The cycle is not yet complete because we have not used all of our
resources to produce those kinds of energies. Yes, I voted for a lot of
money in the last decade for new technology. I will vote for more. I
will vote for tax credits and incentives for wind and ethanol and
biomass because our energy basket ought to be full and running over
instead of sitting here and nit-picking and playing the political game
of a little of this but not this; we can't do this, but we ought to do
this; not in my backyard but in somebody else's backyard. Shame on us
for that attitude.
It is the consumer, it is the taxpayer, it is the economy itself, it
is the very jobs that drive the workforce of this country that are at
stake.
We ought not be so selective. We want an abundant energy supply, and
we ought to be prudent in the development of the policy that drives it
and produces it.
What I am telling my colleagues is, I am prepared to vote for it all:
Lots of conservation, LIHEAP, lots of new technology, the tax credits
necessary to drive it, exploring ANWR in Alaska, exploring other public
lands in our Nation. I don't want to go home and say that the Congress
got bogged down in politics and failed, and your gas bill is going to
double over the decade or triple or quadruple, and your energy costs
are going to become an ever-increasing part of your household or
business budget because politically we didn't get the job done.
Shame on us if that is the case.
Our job is to be responsible in producing a quality, energy policy
for the Nation, not the political, environmental nit-picking that is
going on at this moment.
I hope the real job that is done here is to offer the amendments to
craft a bill that will produce something that is phenomenally clean,
abundant and allows our technology to lead the rest of the world into a
clean energy environment that is abundant for all and inexpensive for
everyone along with it.
I yield the floor.
The PRESIDING OFFICER (Mr. Corzine). The Senator from Nevada.
Mr. REID. Mr. President, I did not mean in any way to speed the
Senator from Idaho up on his statement. I wanted to announce on behalf
of the majority leader there will be no votes tonight.
I also ask unanimous consent that Senator Durbin now be recognized
and, following that, Senator Burns be recognized.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Illinois.
Mr. DURBIN. Mr. President, I thank the majority whip from Nevada for
his unanimous consent request. I appreciate the opportunity to be here
to speak on this issue which is so critical to the future of America.
Let me begin by commending the Senator from New Mexico, Mr. Bingaman,
as well as our majority leader, Senator Daschle, for bringing this bill
to the floor and keeping a promise that they would. We have been
challenged for more than a year by the Bush administration and by
Republicans in the Senate to bring an energy bill forward. Senator
Daschle made it clear he would do that. But for a delay in the previous
bill on election reform, it might have taken place as early as last
week. He certainly kept his word.
I thought it was interesting that some of those from the other side
of the aisle came to the Chamber and actually criticized the process.
If I understand their argument, they think we brought it to the floor
too fast. They think it should have gone through committee, should have
been subject to a lot of amendments and changes. Quite honestly, if you
look at the precedent of what has happened in the Senate, Senators
Daschle and Bingaman have brought this bill to the Senate in the same
manner the Republican leadership did 2 years ago.
They have given ample opportunity for amendments and debate. That is
the way it should be. I have always felt that in a legislative body,
you give it your best argument and present it to your colleagues and
have a vote and move on, ultimately to final passage. I hope that is
what happens with this important bill.
This is the fourth time we have debated energy policy in America
since 1973. The last time was 10 years ago. When you look at what has
happened to us in recent times, you can understand how timely this
debate is: We faced spikes in oil prices in the spring of 1999 due to
an OPEC decision to reduce production; the winter of 1999-2000 home
heating problems caused by a combination of unexpected weather,
depleted supply, and rising costs; gasoline price spikes in the Midwest
in the summer of 2000; rolling blackouts in California in early 2001
marked the first deliberate energy cutoff since World War II.
These events were set against the backdrop of strong economic growth
in the mid to late 1990s; increases in energy consumption to keep this
economy moving forward; deregulation; advances in efficiency; and
evolving defense and foreign policy.
As we debate this issue, our attention is focused to that part of the
world again that is the source of a great portion of our energy. We
have to understand that this debate is taking place in the context of
an American dependence on foreign oil. I believe it is naive to think
that in the near term we will be completely independent when it comes
to energy sources. I wish I could say otherwise. Even with our best
efforts, we are going to have to rely on some imported fuel.
I hope we can make progress in this bill in moving us forward toward
less dependence on foreign energy sources. The way we approach that is
the crux of this debate.
On the other side, the Bush administration and many Republicans--not
all but many--in Congress believe that production is the way to answer
this. They think if we can just find sources of production that are
adequate, we can take care of America's future energy needs. I won't
quarrel with the math, but I will quarrel with the policy.

[[Page S1524]]

I do have to question whether or not we want to embark on a policy
that really focuses on the production of energy as the foundation and
cornerstone of our energy policy. That, in my point of view, is
thinking that dates back to the last century and before. We should be
thinking in smarter terms about ways to not only create energy but to
conserve energy in a fashion that is not only going to give us energy,
move us toward energy independence, but is also kind to our
environment.
That is the second half of this equation. It is not just about our
economy and energy as the fuel for the economy, but the impact of our
use of energy on the environment we live in, the air we breathe, the
streams and rivers that may be polluted, as well as the whole question
of whether or not we are going to for once invade some wilderness areas
to try to drill for oil and gas.
Let me summarize what the bill says, as has been mentioned in the
course of the debate. It tries to address ensuring adequate and
affordable supplies of energy from renewable sources as well as oil,
gas, coal, and nuclear. This element of the bill is important to speak
about for a moment.
This bill creates goals and incentives to increase the amount of U.S.
electricity produced from renewable energy sources.
This is an area of great potential in the United States. We are
seeing, for example, alternative and renewable fuels being used to a
greater extent in some parts of our country than others. California is
an example. I am told that 12 to 13 percent of the electricity
generated in California comes from renewable sources. Those include a
lot of things--geothermal, wind power, and others. We should really
embark, as part of this bill, on a national policy of encouraging these
renewable sources. They not only lessen dependence on foreign energy
source, but they are also kind to the environment. Solar, wind,
geothermal, and biomass are all mentioned in the bill as avenues for us
to explore in the use of renewable energy sources. We also need a
renewable portfolio standard to increase the amount of renewable energy
provided by electricity retailers.
Let me show you a chart that talks about renewable sources for
electricity consumption. If we do nothing, the lower line here
represents the current renewable sources in America as a per average
total. You see it is slightly more than 2.5 percent. This bill moves us
forward. By 2020, we are at least over 10 percent. We will debate, in
the course of this bill, an amendment by Senator Jeffords which would
even have us at a higher level as a commitment to renewable energy
sources. This makes sense, it is an important debate, and it will
change our way of approaching energy--but change it in an
environmentally sensible way.
We also need to expand the amount of ethanol and biodiesel used in
motor vehicles. This bill does it. It triples the amount that is going
to be used in America during the life of the bill. That is a big issue
where I live because, living in the farm belt and being in an area that
is considered, I guess, the ``OPEC of ethanol,'' we really have major
ethanol production. But the good news is there are other areas in the
country that are currently opening up ethanol production facilities.
Ethanol, of course is an alcohol fuel derived from grain, primarily
from corn. It is a fuel that is kind to the environment. It reduces
pollution and helps our farmers. I do have some bias, representing a
farm State such as Illinois, but more demand for ethanol is going to
create higher farm prices for corn and reduce the need for Federal
expenditures in the farm program. It is a winning proposition.
I am really proud that this bill focuses on ethanol and biodiesel and
makes a serious national commitment to expanding it to 5 billion
gallons by 2012. We expedite the construction of the pipeline to bring
natural gas from Alaska to the lower 48. This doesn't involve the
Arctic National Wildlife Refuge (ANWR). It is a pipeline already in
areas that have been vetted to be economically acceptable,
environmentally acceptable, and it doesn't go into the wilderness
areas. We increase funds to speed up the permitting of new domestic oil
and gas production.
I have heard executives from oil companies tell me: You don't need to
go to ANWR; there are plenty of places that are environmentally sound
in the United States to turn to. ANWR is in this debate because a lot
of companies have invested a lot of money in ANWR. They are being
protected by some in this Chamber who want to make sure they capitalize
on that investment. We ought to think twice about that, and I will
address that in a moment.
The bill extends permanent authority to fill and operate the
Strategic Petroleum Reserve. This is a reserve of petroleum that is
available in emergency circumstances to the United States. I think it
is important to fill it and have it on hand when needed. You never know
when you are going to face an interruption in supply. The bill also
invests in Research and Development in all fuels. That is when we
exhaust the discussion of ensuring the diversity of energy supplies.

We now move to the question of improving efficiency and productivity
of energy transmission and use. I learned, by my experience in my home
area, in central Illinois, how important the national grid is to
electricity. There is a lot that needs to be done to upgrade this grid
and make certain it is really national in scope, so consumers can know
they have reliable sources for energy supplies.
This bill--this legislation on the Democratic side--protects
reliability of the interstate electric grid and removes barriers to
adding to the electric infrastructure. It will provide consumers with
more transparent information and better information on energy choices.
It requires higher fuel efficiency in future Federal purchases of
automobiles and other vehicles and greater energy efficiency in Federal
buildings. It helps State and local governments save energy in public
schools and public housing. It sets new efficiency standards for
commercial and consumer products, including an increase in central air-
conditioning efficiency by 30 percent, and enhancements to the Energy
Star Program, to improve product label information. It increases
funding for the Low-Income Home Energy Assistance Program (LIHEAP) to
help low-income families make their homes more energy efficient.
I have seen the importance of this program firsthand. I just left
Chicago, which I am proud to represent in the Senate, where the weather
was cold--zero degrees on Sunday night, with the wind chill bringing it
down below zero by about 22 degrees. I thought of all the people who
are living in homes that are not adequately heated. I have visited some
of those homes and have seen people struggling to keep their babies
warm in a frigid atmosphere. LIHEAP provides the basic necessities of
home heating and cooling. It also helps low-income families make homes
more energy efficient, and it is particularly important for senior
citizens.
Other things are part of this bill, but I want to move to one
particular element that I think is very important for us to discuss,
and that is the Corporate Average Fuel Economy (CAFE) standard. I was
visited earlier today by one of my close friends in the labor movement,
who came to me and urged that I oppose any increase in the fuel
efficiency standards, fuel economy standards for automobiles and other
vehicles in America. I really struggled in trying to understand his
point of view, but to put it in the context of what I think is an
important element in this debate, the way I see it is this. In 1975, we
made a decision in America to basically double the fuel efficiency of
cars to 27.5 miles per gallon, and to do that by 1985--a 10-year
project.
At the time it was proposed--and I have seen quotes from the debate--
automobile manufacturers said it was physically impossible, it could
not be achieved without laying off auto workers across America, and
that technologically we were going to sacrifice the safety of cars in
an effort to try to put this new fuel economy standard in place.
Well, we did it. We did it by 1985, and we are better off for it.
Think of the level of our dependence on energy today had we not
initiated that discussion in 1975.
But since 1985, we have been absolutely stuck in the mud when it
comes to improving these fuel economy standards. If we don't take the
issue of fuel efficiency seriously as part of this energy debate,
Congress should not be

[[Page S1525]]

taken seriously, because if we cannot improve the efficiency of
vehicles in our country, frankly, all of the technology we have
demonstrated throughout our history is for nothing. I think we have the
capacity to do it.

I have to tell you that it is some source of embarrassment to me
that, time and again, we are two steps behind automobile manufacturers
overseas--particularly those in Japan--when it comes to new technology
for automobiles and other vehicles, to make them cleaner and safer.
There is absolutely no excuse. We have the greatest engineers in the
world. We have great minds in Detroit and other places. Why are we
always two steps behind? Why would Honda and Toyota be the first
companies to the market with these hybrid automobiles that offer 60 to
70 miles per gallon, while Detroit is still in a concept car and they
hope by next year they might be able to offer the first vehicle?
During the Clinton administration, President Clinton and Vice
President Gore said: We are prepared to basically look the other way on
antitrust enforcement to give the Big Three automakers a chance to sit
down, work together, and come out with a fuel-efficient car. This was
the common complaint: Oh, we could do it, but as soon as we talked to
one another, the Department of Justice would be on our backs. The
Clinton-Gore administration said: Have no fear. Move forward.
Nothing happened. We sit here today still looking for that
breakthrough in automobile technology. Quite honestly, this bill is
going to move us forward in terms of fuel economy. I am going to
support it. I hope to explain to my friends in labor as well as those
working for the Big Three that if we don't include fuel efficiency and
fuel economy in this bill, this bill is not worth the effort. If we
don't do this, we are going to find ourselves continuing to be
dependent on finding new sources of fossil fuels around the world and
in the United States.
We are conceding the fact we are going to be so hungry for oil to
fuel these gas guzzler cars on the highways that we are prepared to
drill almost anywhere. Already some are saying: Let's go into
wilderness areas in Alaska; we have no place else to turn. What is
next? The Mall? Central Park? Yosemite?
Frankly, we have to look at our responsibility in this country as
part of this debate. It is a mistake to believe we can sit here and
tell the American people that we can be more fuel efficient and have a
sensible energy policy that will not involve their commitment and their
sacrifice.
If we look at the highways of America 10 years from now and see cars
like today, or even bigger vehicles, we have failed. We have failed
because, frankly, we are conceding that there is absolutely nothing we
can do in energy policy that will change the habits and tastes of
Americans and move us toward a more responsible course.
In this time when we are waging war and Americans are being killed
overseas because of terrorism, when we are focusing on the Middle East
and its instability, is it too much to ask the people of this country
to join us in a collective discussion and debate about what we can do
as individuals, businesses, and families to come up with more efficient
vehicles? I do not think it is.
Americans are prepared to sacrifice with the right leadership if they
believe the goals are right and honest. I believe these goals are. More
fuel efficiency for our vehicles means less dependence on foreign
energy sources and less pollution.
Let me give a comparison about what conservation means as opposed to
some of the alternatives that have been suggested. This is a chart
which I think tells an interesting story. Take a look at what this bill
does in terms of saving millions of barrels per day of petroleum. In
the industrial and home efficiency savings of this bill, look at the
savings from the current debate time, 2002, to the year 2030. There is
a substantial increase in the industrial and home efficiency savings
area that brings us ultimately to a savings of millions of barrels per
day. The largest part is in vehicle savings.
In other words, taking the basic elements of this bill, these are the
millions of barrels we will save per day with the fuel efficiency of
the Bingaman-Daschle bill. There are those who say we do not need to do
that; what we really need to do is drill in the Arctic National
Wildlife Refuge, a wilderness area.
Mr. MURKOWSKI. Mr. President, I wonder if my friend will yield for a
question.
Mr. DURBIN. I will be happy to yield for a question in a moment.
This chart indicates what we can hope to bring out of the Arctic
National Wildlife Refuge. The chart may be sitting too low to see
because it is way down on the chart. I want to make sure that those who
are following this debate with rapt attention notice that on the amount
we hope to glean from the Arctic National Wildlife Refuge, even if we
voted today to start it, we will not see the first barrel of oil coming
out of there until 2009. Look at how little comes out. This larger
amount is what we can achieve with efficiency. This smaller amount is
what we are debating in a wilderness and refuge area. We should make
this commitment part of our energy policy. Why do we have to turn to an
area which we declared, as part of our national policy, would remain a
wilderness as God created it, bring in the trucks and all of the
pipelines and everything that is necessary, and risk the loss of
wildlife and changing the face of that area forever, when, in fact, if
we take a responsible course on vehicle fuel efficiency, as well as
industrial and home efficiency, the savings far outweigh what we could
possibly glean from this Arctic National Wildlife Refuge?

I will be happy to yield to my colleague from Alaska.
Mr. MURKOWSKI. Mr. President, I noted the reference by the Senator
from Illinois several times to the issue of wilderness. I wonder if he
understands the status of the area under consideration in the amendment
that will be offered by various Members relative to opening up ANWR.
Mr. DURBIN. I certainly have heard many descriptions. I will let my
colleague from Alaska explain it.
Mr. MURKOWSKI. Let me refer to the statements that have been made by
the Senator from Illinois relative to this being a wilderness, to this
being a refuge. Clearly, there are distinctions. I would stand with the
Senator from Illinois if there were any effort to open oil and gas
exploration in wilderness areas of my State.
The Senator from Illinois indicated there were proposals to even go
into the wilderness in Alaska. I know of no such proposals to drill oil
and gas in wilderness. As a matter of fact, the 1002 area is a refuge.
As the Senator from Illinois knows, we have drilling in numerous
refuges. We have about 41 refuges in the United States where we drill
for oil and gas. They are in virtually every State. As a matter of
fact, I think there are one or two in Illinois.
I encourage my friend from Illinois to not mix metaphors because
wilderness is wilderness. We do not drill in wilderness areas. We are
not proposing we drill in wilderness areas. The 1002 area is not a
wilderness. It was set aside by Congress for specific action.
I am sure my friend from Illinois knows that ANWR is about the size
of the State of South Carolina. I am sure he knows there are 8.5
million acres of the 19 million acres that are designated as
wilderness, but that is not in the area that is proposed to be opened
for competitive leasing. That is 1.5 million acres in the 1002 area.
I am sure my friend is also aware that out of the 19 million acres, 9
million acres have been set aside in a separate refuge that is managed
as a wilderness which is not included.
It is important that we recognize realities and not mix metaphors
because the Arctic Coastal Plain is certainly not the last remaining
wilderness in Alaska.
We have 56 million acres designated wilderness that we defend. So
please be careful when you mix these metaphors because if you had been
up there to look at it, you would have a different appreciation.
Mr. DURBIN. I would like to reclaim my time.
The PRESIDING OFFICER. The Senator from Illinois has the floor.
Mr. DURBIN. I think I have been generous in allowing the Senator to
interrupt this presentation.
Mr. MURKOWSKI. I was not interrupting. I was responding and asking a
question about metaphors. I think we should be very careful not to
mislead the public.

[[Page S1526]]

Mr. DURBIN. It is very gracious of the Senator from Alaska to help me
with my metaphors. I thank the Senator from Alaska. I stand corrected.
The use of the word ``wilderness'' is inappropriate. It is the Arctic
National Wildlife Refuge.
I do believe it is somewhat specious to argue it is only the size of
South Carolina. Three Mile Island was only the size of this Capitol
Building, and when you look at some of the oil spills I have seen, when
I went up to see Prince Edward Sound, the size of that tanker may not
have been much longer than half the size of this building, but what it
did when it ruptured caused damage far beyond the size of the tanker.

When the Senator says it is just the size of South Carolina, I think,
frankly, that understates the potential damage which could be done to
the environment and to the wildlife if we are not careful.
Plus, I have to tell my colleagues, I believe it is shortsighted and
it is not the wisest and most prudent approach to say that if we are
going to have any kind of energy independence, then we have to drill in
a national wildlife refuge in Alaska.
There are so many other activities we can do by way of conservation,
efficiency, and drilling for oil and gas in environmentally sound areas
that would absolve us from getting into the controversy of going into
this wildlife refuge. I think, frankly, that is a wrongheaded approach.
I disagree with the Senator from Alaska. I was happy to yield him the
time, and he made his point.
In concluding this presentation, let me say the following: I hope
when we get into this debate about fuel economy and fuel efficiency
standards that we can find a way to deal with some of the more vexing
aspects of the problem. Part of this has to do with credits we created
years ago rewarding some automobile manufacturers for the types of
vehicles they made and not rewarding others.
The building up of these credits has created a secondary, but very
important, argument which should be addressed as part of this energy
policy debate.
What I think we should require of all manufacturers that want to sell
in the United States, domestic and foreign, is that they demonstrate a
real commitment to improved fuel efficiency of their vehicles.
Recently, one of the engineers in the city of Chicago at the Illinois
Institute of Technology wrote an article for the Chicago Tribune in
which he had a few thoughts about the whole discussion of hydrogen-
fuel-cell-powered vehicles. It is an interesting concept, he said, but
at least 10 years away, maybe longer; we should continue to explore,
but, frankly, do not hold it out as the Holy Grail; and that just
because of the possibility of hydrogen-fueled cars, we really should
not avoid addressing fuel efficiency and economy in today's
automobiles.
He said at the end of the article: I hope the Senators from Illinois
read this article and give me a call.
So I did. I said to the Professor: What is it you would suggest we
do?
He said: There are things that can and should be done now to improve
the fuel efficiency of vehicles. Why Detroit and other manufacturers
are holding back on it, I do not understand.
He gave us one illustration. A larger battery in a vehicle allows one
to turn to more electronic equipment in that vehicle as opposed to
mechanical and hydraulic, which takes weight off the vehicle but still
performs the valuable function. That seems sensible to me.
He says a heavier battery where there is electronic-powered brakes,
for example, could save 2 miles per gallon, and you think, well, that
is a pretty sensible thing to do.
He also said looking to newer materials that are safe materials that
can be used in vehicles that do not add to weight but still provide
protection, all of these things have to be on the table. They will not
be taken seriously by Detroit unless and until we are serious about
fuel economy standards. We will continue to play the role of second
best in this automobile technology race unless and until Congress has
the willingness and the political courage to step up and say to Detroit
and all automobile and truck manufacturers across America: We have to
do better.
When I asked one of the critics of this bill today what do they think
we can achieve, what is realistic when it comes to fuel economy, he
said: I think we can achieve a 10-percent improvement in fuel economy
by the year 2019.
I said: So we could go from 27\1/2\ miles per gallon to perhaps 31
miles per gallon by the year 2019?
Yes, he said.
So I said: From 1985 to 2019 the best we could achieve was 3 miles
per gallon?
I do not buy that. I do not believe that. I really believe we proved
between 1975 and 1985 that given the right incentives, we can do a lot
better than that, and I sincerely hope those who are involved in this
debate will not view it as a political and legal struggle but as a
technological challenge, because once challenged, I think our
scientists and engineers can rise to that occasion.
So I commend my colleague from New Mexico, Senator Bingaman, for his
leadership on this bill, as well as the majority leader, Senator
Daschle, for joining him in this effort. I look forward to this debate
because I believe it is timely. And I am hoping that as a result of it
we will have a reliable, stable supply of energy; we will have
conservation policies that make sense for our future; we will move
toward renewable fuels which have such great potential; we will find
ourselves using alternative fuels that, frankly, have been valuable to
us and can be used even more. That is part of a balanced debate that
does not have us drilling in wildlife refuges--not wilderness, as
Senator Murkowski has corrected me--and areas that, frankly, should be
the last place, not the first place, we turn to when we are desperate
for energy, especially when we have a lot of options we can consider in
terms of energy efficiency.
I yield the floor.
Mr. BINGAMAN. Mr. President, I know the next order of business is to
hear from the Senator from Montana, Mr. Burns. I do not know if he is
available to give his statement at this point. I think possibly we
should go into a quorum call and try to locate him.

I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. MURKOWSKI. Mr. President, I am not going to speak long, but I
want to make a point to my colleagues, and particularly their staffs,
that there are certain aspects of this legislation that are very
technical and certain aspects reflect on the knowledge that obviously
we have in our own States, and I respect that. I want to put my
colleagues on notice we are going to follow the statements very closely
and we will respond in rebuttal to obvious inaccuracies relative to
statements that are being made, and that is in the spirit of simply
accuracy and factual information that I think is necessary to portray
and project indeed the importance of having factual information before
the Members of this body as we deliberate the bill.
I see the Senator from Montana. If there is no objection from my
friend from New Mexico, I yield to the Senator from Montana.
The PRESIDING OFFICER. The Senator from Montana is recognized under
the previous order.
Mr. BURNS. Mr. President, I thank my good friend from Alaska, and I
thank the chairman of the Energy and Natural Resources Committee for
the time.
This is a great day. I think this is a good day. We have finally
started talking about legislation we hope will facilitate a policy to
make us a little more efficient but also increase supply, especially in
case of emergency, and to keep this economy rolling. The bill we have
today is 433 pages long, and it is written in legalese that most
people, including me, do not easily understand.
As complicated as this bill is and as complicated as this process is,
the reality is simple: This country needs a comprehensive energy
policy.
Last fall, this country was shaken to its foundation. That experience
has made each of us stand back and make

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decisions about what is really important in our lives. As I have
traveled across this country and in my home State of Montana, I keep
hearing the same thing over again. Everybody in America wants to
protect their family, they want to provide a safe and secure living
environment, they want to protect their loved ones from harm.
There is one thing that is undisputable. I represent an energy State.
We have been in the production of energy for a long time in Montana so
we know a little something about it. There is also something else that
is indisputable and that is that a comprehensive energy policy is
absolutely paramount to American freedom. Let me put it this way:
Energy security is economic security is national security.
If that magic word that goes across our television screen and across
our mind is ``security,'' we cannot separate those three. Energy
security is economic security is national security, so that the
decisions we make here in the Senate will affect and direct the lives
of every single American, without exception. The policy we set here on
the Senate floor should ensure that energy is affordable, and that it
is abundant. Affordable energy means businesses stay open and
businesses prosper and people keep working. It means senior citizens
who are on fixed incomes are able to pay their electricity bill at the
end of the month without having to give up something else. It means
someone can fill up their car with gas and drive their kids to school;
fill up a truck and deliver goods across the country without breaking
the bank; and, yes, to my State, crank up the combines, harvest a crop
and put another one in, without fearing the repercussions of high fuel
prices.
Every one of us will be affected no matter how basic the level. So we
have to answer a lot of questions. How do we get dependable, affordable
supplies of energy? That will be the focus of this debate, and the
policy that carries us not through my generation but also the next
generation and the next. And that is about the time we will have
another policy change because technology and circumstances will change.

We have heard some of my colleagues claim Americans use too much
energy, that we are greedy, that we use more than our fair share of the
world's supply of energy. Would those same people stand up and argue
that the United States produces more than its fair share of goods and
services? Would they say we have an oversupply of American ingenuity?
Are we producing more computers, more cars, more agricultural goods
than we should? I don't think so. I don't think the hard-working people
who produce those goods think so either. We can do that because we are
good at it and because we have used our energy with the best
conservation technology known until this date.
Let's go one step beyond the economic security that affordable energy
provides. Think about the security it provides this country when we
improve our ability to produce different kinds of energy domestically.
For example, this country buys 56 percent of its oil from other
countries. Think back to the 1970s when we had the lines at the gas
stations. Then it was around 35 or 36 percent from foreign countries. I
don't like that kind of vulnerability. Much of that oil is produced
from countries or producers that have very honest intentions, but, I
will remind Americans, not all of them and not all of it.
Every drop of oil we produce domestically is one that we do not buy
from Saddam Hussein. Every barrel bought from a rogue nation could mean
a bomb built to hurt this country. I think it is about time we turn off
the spigot of terrorist oil.
In this debate we will start talking about the Alaska National
Wildlife Refuge. While at times the point may be confused, like in the
colloquy that just preceded me--ANWR was a wildlife refuge created by
law and that law gave express permission or grant to drill within parts
of it. I can think of no other public land that was created with that
express intention and law.
I would like to point out that the debate over ANWR will boil down to
whether we open up 2,000 acres for exploration in Alaska. It will be
examined. It will be turned inside and out, over and over again. We
will debate this a long time.
I say to my good friend from Oklahoma, whose State is an energy
producer like my state of Montana, that since 1997, in my State alone,
the Federal Government and the executive branch have managed to shut
off 727,000 acres from gas and oil development in Montana in two
different decisions. There was no congressional discussion either time.
I agree with open debate and I am glad to be a part of this process,
but I wonder why we only get to do it when we want to open Federal
land, and not when we shut it off. Why is it that a midlevel manager in
the Forest Service can make the decision to close 350,000 acres, and we
don't hear a whimper or whisper on the Senate Floor.
Because of a decision made in a federal bureaucracy or through
executive order, it has been decided we are going to take that land out
of production. That denies my State the ability to produce energy for a
country that really needs it, and the jobs it provides and the revenue
it provides to my State to build schools, build roads, provide
government services.
Of course, this debate will extend beyond domestic oil and gas
production, and it should. We are developing excellent technology. We
are tapping resources to create energy from new sources. I heard
mention today about renewables. They want to use thermal activity.
We live next to an area that has more thermal activity than any place
in our country: Yellowstone Park. There is thermal potential all the
way around it. You just try to develop it. It cannot be done because
you have to cross federal land to get there, which makes absolutely no
sense.
We will talk about fuel cells. We will talk about biomass. We will
talk about ethanol. We will talk about wind. Those are only a few of
the opportunities we have to use our resources in new ways.
I am proud to support alternative and renewable energy, and will
continue to do so. But we can't shortchange our energy needs today by
focusing our efforts on alternative energy alone. Many of the
technologies are promising but are still in the developmental and very
expensive stages in comparison to our traditional energy sources. By
continuing to develop and encourage alternative fuels and create
markets for those technologies, we can approach this country's energy
future with optimism.
It is time we go to work. It is time we debate those issues one by
one. But keep in mind what I said at the beginning of this speech. I do
not know of a military airplane we fly that doesn't burn oil-based
fuel. And if something really bad happens in this country, I tell you
something: The fire truck that shows up and the emergency vehicle will
burn gasoline. In order to fight this great battle against terrorism
and against people who would erode our freedoms, who work in the
shadows, and who are a faceless enemy, the weapons we need still burn
gasoline.
We have to think about the American people and their safety and their
security. What we are asking in this is a policy that will develop
those new technologies. But we cannot turn our backs on the demand for
the energy sources we have used for so long in this country. Let us
work to give the American people what they need--a safe, steady energy
supply that will ensure economic stability and national security.
I thank the Chair. I yield the floor.

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