Congressional Record, Volume 151 Issue 48 (Wednesday, April 20, 2005)

[Congressional Record Volume 151, Number 48 (Wednesday, April 20, 2005)]
[House]
[Pages H2192-H2366]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

ENERGY POLICY ACT OF 2005

The SPEAKER pro tempore. Pursuant to House Resolution 219 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the State of the Union for the consideration of the bill, H.R. 6.
The Chair designates the gentlewoman from West Virginia (Mrs. Capito)
as Chairman of the Committee of the Whole, and requests the gentleman
from Iowa (Mr. Latham) to assume the chair temporarily.

{time} 1458

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 6) to ensure jobs for our future with secure, affordable, and
reliable energy, with Mr. Latham (Acting Chairman) in the chair.
The Clerk read the title of the bill.
The Acting CHAIRMAN. Pursuant to the rule, the bill is considered
read the first time.
General debate shall not exceed 1 hour and 30 minutes, with 30
minutes equally divided and controlled by the chairman and ranking
member of the Committee on Energy and Commerce, and 20 minutes equally
divided and controlled by the chairman and ranking member of each of
the committees on Science, Resources, and Ways and Means.
The gentleman from Texas (Mr. Barton) and the gentleman from Michigan

[[Page H2193]]

(Mr. Dingell) each will control 15 minutes from the Committee on Energy
and Commerce.
The Chair recognizes the gentleman from Texas (Mr. Barton).

{time} 1500

Mr. BARTON of Texas. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I rise in strong support of H.R. 6, the Energy Policy
Act of 2005. Passage of this comprehensive bill will ensure a more
affordable, environmentally friendly energy supply.
America's prosperity and national security are at stake. The bill
before us today is a balanced bill and it is a bipartisan bill. It will
have lower energy prices over time for consumers, it will help spur our
economy, create hundreds of thousands of jobs, and take unprecedented
steps to promote greater energy conservation and efficiency.
The Energy Policy Act of 2005, among other things, improves our
Nation's electric transmission capacity; promotes a cleaner environment
with new innovations on alternative power sources, the Clean Cities
authorization, and the hydrogen fuel cell car program; it promotes
clean coal technologies, provides incentives for renewable energies,
such as biomass, wind, solar and hydroelectricity.
The bill would provide leadership in energy conservation by
establishing new mandatory efficiency requirements for Federal
buildings, and expands the Energy Star program to tell American
consumers what products save the most energy.
The bill also provides an efficient approval process for siting new
liquified natural gas facilities. It would, for the first time, give an
expedited procedure, hopefully in brownfield areas and high-
unemployment areas, for expanding or building some new refineries. We
have not built a new oil refinery in this country for the past 30
years.
I could go on and on, Mr. Chairman, but simply let me say at the
beginning of the debate that it is time for an energy policy for
America. It is time for the House of Representatives to say we want a
strong economy based on the world's best and most open free market for
energy supplies, and also to put some incentives in for conservation.
I strongly support the bill, and I look forward to the debate we are
about to begin.
Mr. DINGELL. Mr. Chairman, I yield myself 3 minutes.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Mr. Chairman, we have a bad bill. It is represented as
being something which is going to save money and increase energy
supplies. The Energy Information agency says neither of these cases is
true. It is not going to reduce energy prices, but rather will increase
the cost of gasoline.
Let us look at what our country needs. It needs Congress to pass a
real energy bill, not a flawed bill that will hurt the environment,
hurt consumers, and cost taxpayers a bundle of money. Democrats have
been trying to work with our Republican colleagues to get balanced,
sensible legislation, starting with a clean slate in a bipartisan
fashion.
We have been denied that opportunity. The Republican leadership
chose, instead, to push an outdated energy bill which had its origins
in the secret Cheney Energy Task Force and was negotiated in secret
conference meetings which excluded the Democrats.
The administration's own Energy Information Administration analyzed
the old bill saying changes to production, consumption, imports, and
prices are negligible. It even found, as I noted, that gasoline prices
under the bill would increase more than if the bill were not enacted.
While the bill will little help our energy independence, it is far
from benign. Despite our efforts to overturn the antienvironmental
provisions of the bill, it weakens laws such as the Safe Drinking Water
Act and the Leaking Underground Storage Tank program that protect the
environment and public health.
The bill also changes hydroelectric power policies by undercutting
safeguards for dam relicensing. It gives power producers more and
better rights than States, tribes, and other public entities. It
jeopardizes not only fish, but the overall health of our river systems
and the recreational activities that they sustain; and it confers,
unfairly, rights on people, while not taking the same care of the
concern of the citizenry generally.
The bill eliminates requirements for public participation and
deference to the States in decisions about the siting of electric
transmission lines and natural gas facilities.
As far as consumers are concerned, it is hard to imagine a better
case for increasing consumer protections than the debacle which took
place in the West Coast electricity markets in 2000 and 2001. The
Federal Energy Regulatory Commission has determined widespread fraud
existed, and there are tapes to prove it; yet this bill gives only
cosmetic reforms in law and, in point of fact, repeals the Public
Utility Holding Company Act of 1935, which protects consumers and
investors.
And it does nothing to assure refunds of unjust and unreasonable
overcharges. While blackouts cost the consumers $80 billion, this bill
holds a sensible reliability provision hostage to its more
controversial provision and caps the necessary expenditure to set the
job right.
Taxpayers will also be hit hard by this bill. We do not know the
total cost, but last time it cost over $30 billion, four times the
amount requested by the administration.
This is a bad bill. I urge my colleagues to reject it.
Mr. BARTON of Texas. Mr. Chairman, I yield 2 minutes to the gentleman
from Georgia (Mr. Norwood), a member of the committee.
Mr. NORWOOD. Mr. Chairman, I thank the gentleman for yielding me this
time, and I have a little different view of this.
This is a good bill. It is a bill this country needs. We need a
national energy policy, there is no question about it, and I
congratulate the gentleman from Texas (Mr. Barton) on years of hard,
dedicated work to bring this to the floor.
Having said that, like any other bill I have ever seen, it is not a
perfect bill; it has its good and bad parts. And if I could, Mr.
Chairman, just for the record, I would like to have a little quick
colloquy with the gentleman from Texas.
Mr. BARTON of Texas. Mr. Chairman, if the gentleman will yield, I
would be happy to have a colloquy with the gentleman from Georgia.
Mr. NORWOOD. Mr. Chairman, as my colleague from Texas knows, the
electricity title is very, very important to my consumers and my
constituents in the southeast as well as in the northwest, and one of
the provisions in the title that is not there is regarding
participatory funding.
Since that is a fairly standard thought-out thing in regional
transmission organizations, I am concerned that the bill does not have
any language in there to assure me and my constituents that they are
not going to have to pay extra. We do really want to help people that
are having blackouts and brownouts, but we do not think we should pay
the whole load.
What can I anticipate on participatory funding down the road?
Mr. BARTON of Texas. Mr. Chairman, will the gentleman yield?
Mr. NORWOOD. I yield to the gentleman from Texas.
Mr. BARTON of Texas. Mr. Chairman, as the gentleman well knows, the
gentleman from Illinois (Mr. Shimkus) offered an amendment in the
committee that struck the participatory funding language from the
conference report, but at that time, I assured the gentleman from
Georgia and the gentleman from Mississippi and several other interested
Congressmen in the committee that when we go to conference with the
Senate, we will work out language that is fair and balanced and
protects the rights of the incumbent local utilities and also the
independent power producers to find a fair and balanced way in which to
build and maintain the transmission system for our great Nation's
electricity grid.
Mr. NORWOOD. Mr. Chairman, reclaiming my time, I thank the gentleman
very much. As he knows, I agree participatory means ``everybody pays,''
and those that reap the advantages of this, which will be the
generators of electricity and the receivers of electricity, need to
pay. And I am all right with that.
I thank my colleague, and I look forward to working with him on this
as we move forward toward conference.

[[Page H2194]]

Mr. BARTON of Texas. If the gentleman will continue to yield, there
will be a provision in the conference report that comes back when we
report the conference out.
Mr. NORWOOD. I thank the Chairman.
Mr. DINGELL. Mr. Chairman, I yield 3 minutes to the gentleman from
California (Mr. Waxman).
Mr. WAXMAN. Mr. Chairman, Republican leaders say that the bill before
us is comprehensive energy legislation that will meet the Nation's
energy needs by protecting the environment and safeguarding consumers.
Well, these are the right goals, but there is only one problem: The
bill accomplishes none of them. This is an antienvironment,
anticonsumer, antitaxpayer bill.
This bill fails to provide secure, sustainable, and affordable energy
supplies. It does nothing about the most important energy issues facing
our Nation, like addressing global warming and reducing the Nation's
dependence on foreign oil. Instead, this bill lavishes taxpayer
subsidies on big energy companies, while weakening our environmental
laws.
I have never encountered a time when the disconnect between rhetoric
and reality has been so enormous. The President says he wants to save
Social Security, yet he proposes a plan that would cut benefits and
privatize the program. Republicans in Congress say they want limited
government, yet they enact legislation intruding on the end-of-life
decisions for the poor woman in Florida. Congressional leaders say they
want to support high moral standards in government, yet they gut the
ethics process in the House. And in this so-called energy bill we
shower billions on special interests while ignoring our Nation's
serious energy needs.
The Republican energy plan is a bonanza for the energy industry.
While natural gas, heating oil, and gasoline prices have skyrocketed,
we are going to be giving these companies more money. Shell Oil
reported the highest corporate profits in the history of the United
Kingdom. ExxonMobil announced the largest annual profit ever made by a
public company, $25 billion.
There are steps we could take to address our energy problems, but
this legislation ignores them. We urgently need to reduce our
dependence on foreign oil, yet America's dependence on oil imports will
grow by 75 percent over the next 20 years under this bill.
The bill fails to address the market abuse and manipulation that
caused the California energy crisis, costing consumers in California
and western States billions of dollars.
This bill carves a loophole in the laws protecting our coastlines,
our forests, and our public lands. And under this bill, when a big oil
company pollutes community drinking water, the oil companies will no
longer be held responsible for cleaning it up. It is a windfall for
ExxonMobil, but an attack on communities all around this country facing
contaminated drinking water.
This bill makes the most significant changes to the Clean Air Act in
15 years, allowing corporate polluters to expose 53 million Americans
to air pollution for years longer than current law.
I urge my colleagues to oppose this fundamentally flawed legislation.
Mr. BARTON of Texas. Mr. Chairman, I yield 2 minutes to the gentleman
from Missouri (Mr. Blunt), the distinguished majority whip and a member
of the committee.
Mr. BLUNT. Mr. Chairman, I thank the gentleman from Texas for
yielding me this time to speak in favor of this bill, and I thank him
for his great leadership to bring this bill to the floor.
For 6 years now, the President of the United States has been saying
that one of our primary failings as a country was to have an energy
policy that moved forward. For three Congresses, our body has responded
to that, first with the leadership of the gentleman from Texas as
chairman of the subcommittee, and now with his leadership as chairman
of the full committee, bringing an energy bill to the House floor for
three straight Congresses.
What we do here today and tomorrow can be extremely important to
solve the problems that we see at the gas pumps today, to solve the
problems that we see if you try to buy fertilizer today, to solve the
natural gas problems.
Now, it will not solve these problems next week or next month, or
even maybe the month after that. If, however, we had passed the bill my
colleague had brought to the floor 4 years ago, these problems we see
today would not be the large problems that we see today. And for the
leadership of this chairman, the leadership of the chairman of the
Committee on Ways and Means, and the leadership of the chairman of the
Committee on Resources, I am grateful.
I am also grateful to our friends on the other side, led by the
gentleman from Michigan (Mr. Dingell). They did the hard work they did
in the markup. While they may not have agreed with all of the final
product, certainly many parts of this product benefited from the work
they did on this committee.
One of the things we have done is illustrated here by a map that just
shows how many kinds of fuel there are all over the United States. We
have tried to limit the numbers of those fuels in this bill, and even
asked the EPA to look to the future and see what that right number is.
Every time you make gasoline less of a commodity and make it more of
a specialty item, you increase the cost, reduce the reliability, and
the access to gasoline. We hope to move away from that. We hope to do
more things to use conservation and use renewable fuels.
This is the right step. It is after the right time. I wish I could
say it is the right step at the right time, but, Mr. Chairman, it is
not the fault of our committee or our body.
We need to move forward now. I urge passage of this bill.
Mr. DINGELL. Mr. Chairman, I yield 3 minutes to the gentleman from
Massachusetts (Mr. Markey).

{time} 1515

Mr. MARKEY. Mr. Chairman, this is truly a bad bill. Every day we have
pictures on the screen of consumers pulling up to the gas pump, paying
an arm and a leg for gasoline. We have 150,000 young men and women over
in the Middle East protecting our country in that region, and largely
as well the oil supplies coming into our country.
This bill does nothing in order to deal with that problem. In fact,
the Department of Energy analysis of an almost identical bill in the
last Congress concluded that changes to production, consumption,
imports, and prices are negligible. The bill would open the pristine
Arctic National Wildlife Refugee to oil and natural gas exploration
even though there is such a small supply of oil and gas there that most
of the oil companies have pulled out of the coalition trying to open it
to drilling.
This bill contains a liability waiver for the big oil companies that
would force cities and States to spend billions to clean up drinking
water supplies that have been contaminated with the gasoline additive
MTBE which is known to cause cancer.
This bill tramples on the right of State and local governments to
protect their citizens from potentially dangerous energy facilities
such as large liquefied natural gas terminals that would be sited right
in the middle of densely populated cities in our country, even though
we know they would be the number one terrorist target constructed in
that city.
This bill allows oil and gas companies to pollute drinking water by
granting them special exemptions from the Clean Water Act.
This bill allows refineries and utilities to increase air pollution
with special exemptions from the Clean Air Act.
There is a special provision in this bill to protect Halliburton from
ever facing any Federal regulation of a practice of drilling for oil
using the hydraulic fracturing technique that actually injects diesel
fuel into the water supply.
There is a special provision added that authorizes grants and other
assistance to something called the Dine Power Authority, an enterprise
of the Navaho Nation. Who are the beneficiaries of that provision? Why
do they deserve our largess? We never had a hearing on it.
There is a special provision in the bill that provides a $1.3 billion
subsidy to the Idaho National Laboratory to build a special advance
nuclear reactor to produce hydrogen for the hydrogen car. Bad bill;
vote ``no.''

[[Page H2195]]

Mr. Chairman, I rise in opposition to H.R. 6.
I have the greatest respect and affection for the Chairman of the
Committee, the distinguished gentleman from Texas (Mr. Barton), but I
must say in all honesty that this is really a terrible energy bill.
The Chairman comes from Texas, and I'm sure that from a Lone Star
State perspective, this looks like a pretty good bill. But most of our
constituents don't come from oil producing states. Most of our
constituents are energy consumers, and from a consumer perspective this
bill is seriously deficient. In fact, I would suggest that this bill is
a bit like that old Clint Eastwood spaghetti Western: ``The Good, the
Bad and the Ugly.''
There is a tiny bit of good in the bill--like extending daylight
saving time by a month in the Spring and a month in the Fall. Now, that
was a good idea, it really was--and I'm glad that the gentleman from
Michigan (Mr. Upton) and I were able to get it in the bill.
But in all honesty I think I have to say that for the most part, what
we have here before us today is one truly Bad and Ugly bill:
First, let's take a look at the Bad:
This bill does virtually nothing to address the current spike in
crude oil prices or the price of gasoline at the pump. In fact, a
Department of Energy analysis of an almost identical bill in the last
Congress concluded that ``changes to production, consumption, imports
and prices are negligible.''
This bill would open the pristine Arctic National Wildlife Refuge to
oil and natural gas exploration, even though there is such a small
supply of oil and gas there that most of the oil companies have pulled
out of the coalition trying to open it to drilling.
This bill contains a liability waiver for the big oil companies that
would force cities and states to spend billions to clean up drinking
water supplies that have been contaminated with the gasoline additive
MTBE, which is known to cause cancer.
This bill tramples on the right of state and local governments to
protect their citizens from potentially dangerous energy facilities,
such as large Liquefied Natural Gas (LNG) terminals sited right in the
middle of densely populated urban areas.
This bill allows oil and gas companies to pollute drinking water by
granting them special exemptions from the Clean Water Act.
This bill allows refineries and utilities to increase air pollution
with special exemptions from the Clean Air Act.
This bill gives utilities who dam the public's waterways special
rights to appeal and change conditions federal resource agencies placed
on their hydropower license in order to protect fish, the
environmental, irrigation, navigation or other public uses of our
nation's rivers.
This bill repeals the Public Utility Holding Company Act, a consumer
and investor protection law that restricts utilities from self-dealing
and limits their ability to diversify into risky unregulated business
ventures at the expense of utility consumers.
Second, let's take a look at the just plain Ugly.
There's a special provision in this bill for Home Depot that preempts
several states existing or proposed energy efficiency standards for
ceiling fans.
There's a special provision in here to protect Halliburton from ever
facing any Federal regulation of the practice of drilling for oil using
the hydraulic fracturing technique that actually injects diesel fuel
into acquifers.
There's the special provision added that authorizes ``grants and
other assistance'' to something called ``the Dine Power Authority, an
Enterprise of the Navajo Nation.'' Who are they? Why do they deserve
our largess?
There's the special provision added that provides a special exemption
from our Nation's nuclear nonproliferation law for a Canadian company
named Nordion, so that they won't be required to ever agree to convert
their nuclear reactor to using Low-Enriched Uranium fuel and targets,
but can instead continue to use bomb-grade Highly Enriched Uranium that
is a potential terrorist target.

There's the special provision in the bill that provides a $1.3
billion subsidy to the Idaho National Laboratory to build a special
advanced nuclear reactor to produce hydrogen for the hydrogen car.
This is not what a national energy policy should be--a tiny bit of
Good in a sea of Bad and Ugly provisions. No. We should try to seek a
fair balance between the interests of consumers and producers, between
the need for new production and the preservation of our natural
environment. We should take advantage of America's strength--our
technological superiority--and not play to our weakness (the fact that
we control only 3 percent of the world's oil reserves, while OPEC
controls more than 70 percent).
Americans own more cars than there are licensed drivers, and yet this
energy bill does nothing to address the fuel efficiency of cars.
Instead this bill offers up the false hope that drilling in the Arctic
Refuge will solve our energy problems, ignoring that the United State's
3 percent of world oil reserves will never match our 25 percent of
world oil consumption. For some fuzzy math, we would sacrifice the last
great wilderness in America, an area biologically unique within the
American Arctic.
It didn't have to be this way. I lived through the energy policy
battles of the late It didn't have to be this way. It really didn't.
But the Republican Majority that controls this Congress today decided
to make energy policy partisan with a bill that is extreme and over-
reaching. So I would say to my Republican Colleagues, you may have the
votes to prevail here on the House floor this week, but this extreme
bill will not become law. Democrats in this body, along with our
colleagues in the Senate, will fight to ensure that the Bad and Ugly
provisions that presently make up the bulk of this bill are deleted or
revised. And if they are not, we will fight to prevent this bill from
moving to the President's desk.
I urge my colleagues to vote against this bill. We can and must do
much better.
Mr. BARTON of Texas. Mr. Chairman, I yield 2 minutes to the gentleman
from Illinois (Mr. Shimkus).
Mr. SHIMKUS. Mr. Chairman, I thank the gentleman from Texas (Mr.
Barton) for yielding me this time and for his great work on this bill.
It sounds like it is not the bill that I voted on, but I am very
pleased to support it. There is no more important bill in my time here
in Congress than the bill we are addressing today, and there is no more
important bill for the State of Illinois than the bill we are
addressing today. It makes all of the years of our work pay off because
I think this time we will get it across the finish line because it
meets the demands of the country. We have to diversify our energy
portfolio. We can no longer rely on one fuel source, whether it is for
electricity generation or to move our vehicles. We have to diversify
our energy portfolio, and that is what this bill does.
This bill brings clean coal technology, strengthens nuclear power;
and it actually helps renewable power in the aspect of wind power. It
does great things for relicensing hydroelectric power. It helps expand
the transmission grid and block the backlogs that helped cause the
major blackout that we had 2 years ago. It addresses a diversified
energy portfolio on fuels.
It brings renewable fuels to the forefront in this debate. Gasoline
is $2.20, $2.30. Consumers can buy E-85 ethanol fuel for $1.65 a
gallon. So what we have been doing in the past is working. This bill
addresses the supply end, and it also addresses the demand end. We have
to have a national energy policy. We can no longer allow the country to
not have a plan.
I am excited about an opportunity to pass this bill on the floor
tomorrow, move it to conference, and get it to the President's desk. I
want to commend the bipartisan majority that passed it out of the
committee, and commend the chairman for his work.
Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California (Mrs. Capps).
Mrs. CAPPS. Mr. Chairman, I rise in opposition, strong opposition to
this bill. My colleagues have outlined the many problems with it. It
does nothing to impact gas prices. In fact, according to the Energy
Information Agency, it will raise prices at the pump. It gives billions
to industries with already-soaring profits, and it weakens a host of
environmental laws.
Mr. Chairman, one provision epitomizes the bill's failures. H.R. 6
grants liability protection for people who make MTBE who are
responsible for polluting groundwater in dozens of States, leaving
hundreds of communities saddled with billions of dollars in cleanup
costs. Supporters claim it is fair to protect MTBE producers from
liability since Congress mandated its use in the Clean Air Act, but
there is no mandate for MTBE and even the chairman of the committee has
acknowledged as much. In fact, 120 million barrels were added to
gasoline before the clean air regulations were ever issued. Most
damning, documents unearthed in court cases show that manufacturers
knew the dangers MTBE posed to groundwater, and they still added it to
gasoline. The result is what we have today, over 1,800 contamination
sites in 29 different States serving 45 million Americans.
I wanted to offer an amendment to strike this provision because in
its wisdom the House leadership would not want to vote on this. Perhaps
it is because too many Members on both sides

[[Page H2196]]

of the aisle represent districts with bad MTBE problems in places where
lawsuits are pending. Because of the MTBE provisions alone, we should
reject this bill.
Mr. BARTON of Texas. Mr. Chairman, I yield 2 minutes to the gentleman
from Texas (Mr. Gene Green), one of nine Democrats on the Committee on
Energy and Commerce who voted for this bill in committee.
Mr. GENE GREEN of Texas. Mr. Chairman, I thank the gentleman for
yielding me this time.
There was pressure to rush this bill out of the committee without a
markup, but I am glad the committee made the right decision. We had a
3-day full committee markup where almost every imaginable energy issue
was raised, from cow manure energy to ocean power. We even extended
daylight savings time to save energy.
Overall, there are many beneficial provisions in this bill, such as
resolving permit confusion, improving electric reliability, and
mandating Federal energy conservation.
Importantly, this bill provides incentives to clean coal technology,
renewable energies like wind and solar; and it also increases LIHEAP
funding authorization to $5 billion for this year.
Very quickly, I want to thank the chairman for inclusion of a number
of provisions in the bill, such as the provision encouraging the siting
on liquefied natural gas (LNG), which is important to energy security
to cut into the rising natural gas prices that threaten our economy.
The top concern of homeowners and manufacturers in our district are
the high natural gas prices. If we keep offshore production limits, we
have to have LNG to import from other countries. We included some
modern incentives for petroleum coke gasification so we can see what we
can do with basically a byproduct, and important coal gasification
incentives. Energy diversity brings economy-wide benefits.
I commend the authorization of a complex well-testing project at the
Rocky Mountain Oilfield Testing Center. The ability to tap more
resources with fewer wells provides a public benefit for environmental
protection.
The bill contains a study on LIHEAP reform. Providing energy
assistance to families in cold and hot weather is a public necessity,
and I thank the gentleman from Michigan (Mr. Dingell) and the gentleman
from Texas (Chairman Barton) for accepting two new amendments, one
which would require the Department of Energy and the National Cancer
Institute to conduct a health assessment of those living in proximity
to petrochemical and refinery facilities.
Many of my constituents live and work near these facilities. The
communities are concerned, and they deserve the most accurate health
information about their community.
There is a lot to be said about this bill. We have an energy bill for
the first time in my 12 years in Congress.
Mr. DINGELL. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California (Ms. Solis).
Ms. SOLIS. Mr. Chairman, today I rise in opposition to the energy
bill. The bill limits States' rights to protect their water supplies
and protect their air quality, risks the public health of our working
families, and leaves our States to pick up the tab for contamination.
First, the bill puts important groundwater supplies at risk by
allowing diesel fuel and other contaminants to be injected into the
ground with no oversight by EPA.
Second, supporters of the bill refuse to take steps to prevent leaks
into the groundwater from underground storage tanks by rejecting
attempts to require new replacement storage tanks near drinking water
wells or sensitive areas to be secondarily contained.
Third, the bill would make States weaken programs to prevent leaks
during fuel delivery or risk losing Federal cleanup funds.
Finally, the language unnecessarily targets poor and underserved
communities for the unrestricted siting of new refineries. Together,
all these actions are environmental and public health injustices. While
the bill benefits corporate America, it leaves communities like mine
with more contaminated groundwater, increases the cost of cleanup borne
by taxpayers and water providers, and increases the risks to public
health for all Americans.
Mr. BARTON of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Indiana (Mr. Buyer).
Mr. BUYER. Mr. Chairman, I thank the gentleman from Texas (Mr.
Barton) for yielding me this time. The gentleman has done a magnificent
job leading the committee on this new bill.
I would just say, in America we face some great challenges with
regard to formulation of our energy policy. The oil demand growth keeps
rising due to the industrialization of the emerging world. China
consumes 7 million barrels per day; and if China's rise in world
prominence is similar to that of Korea and Japan, China will consume 20
million barrels per day in less than 10 years.
The last big oil discovery was 30 years ago in the North Sea. China
is trying to buy oil companies in Canada; India is trying to buy oil
companies in Russia; the present world production capacity is 83
million barrels a day; and we are running an estimated 81.5 million
today, which means we are in the red zone. The 14 largest oil fields in
the world are 40 years old. Once they are taken out to 50 percent,
water and fluids need to be pumped to keep production at existing
levels. We have some significant challenges. Support this bill.
Mr. DINGELL. Mr. Chairman, I reserve the balance of my time.
Mr. BARTON of Texas. Mr. Chairman, I yield for the purpose of a
unanimous consent request to the gentleman from Connecticut (Mr.
Shays).
(Mr. SHAYS asked and was given permission to revise and extend his
remarks.)
Mr. SHAYS. Mr. Chairman, I rise in opposition to the legislation.
Mr. Chairman, protecting our environment and promoting energy
independence are two of the most important jobs I have as a Member of
Congress. Unfortunately, the bill before us today represents a real
missed opportunity to reduce our dependence on foreign oil, promote
energy efficiency and conservation, and improve our air, land and water
quality.
For decades, our country has lacked a national energy policy. While I
did not agree with the Administration's energy plan, I was grateful
President Bush put forward a comprehensive proposal. The President's
energy plan was superior to the severely flawed bill before us today.
We had a chance to devise a forward-looking energy policy that would
have increased fuel efficiency, made polluters (including MTBE
producers) pay for harming our environment, and advanced a renewable
portfolio standard. Instead what we have is quite a bad bill.
Instead of creating a balanced energy policy that provides incentives
to make renewable energy more affordable and widely available, we are
making fiscally irresponsible and environmentally-reckless decisions
for the benefit of a few profitable industries that don't need this
kind of help from taxpayers.
I fail to understand why the major thrust of the bill's tax
provisions involve further subsidizing the fossil fuel industry, rather
than providing incentives for conservation and renewable sources of
energy. These are enormously profitable industries operating in a time
of record energy prices. Clearly, these profits demonstrate the market
has already provided the fossil fuel industries with sufficient
incentive to increase production.
I strongly oppose a provision in the bill that allows for the
permanent activation of the Cross Sound Cable. In doing so, the bill
subverts the regulatory process and ignores sound environmental policy
regarding the depth at which the Cable should be buried.
In addition to its environmental shortsightedness, I also oppose
provisions in this bill related to energy transmission. For instance,
the Energy Policy Act allows the Federal Electric Regulatory Commission
(FERC) to preempt state siting authorities when it is determined that a
high-voltage power line is of ``national significance,'' and overrides
state authorities when expanding or siting new liquefied natural gas
(LNG) terminals. In our own Long Island Sound just off Connecticut,
this is a very real possibility. While energy security is a national
issue, it seems to me the communities who will live with these siting
decisions deserve a voice in the process.
Finally, I strongly oppose opening the Arctic National Wildlife
Refuge to drilling. We simply won't have a world to live in if we
continue our neglectful ways. In my judgment, it would be far better to
develop prudent and lasting alternate fuel energies than to risk
irreparable damage to the wilderness of one of North America's most
beautiful frontiers. Drilling in the Arctic will not fix our energy
problems--with so little oil available up there it couldn't possibly,
as it will take a decade to get the oil down here. That time would be
far better spent developing clean, renewable energy

[[Page H2197]]

sources that will provide infinite energy without imperiling our last
remaining wilderness areas.
I look forward to the day when we will have an opportunity to vote
for a fiscally-prudent, environmentally-responsible national energy
policy. Today is not that day.
Mr. BARTON of Texas. Mr. Chairman, I yield 1 minutes to the gentleman
from Florida (Mr. Stearns), a distinguished subcommittee chairman.
(Mr. STEARNS asked and was given permission to revise and extend his
remarks.)
Mr. STEARNS. Mr. Chairman, here we go again. As I said, this is the
third time, and it should be a charm.
We have passed this comprehensive legislation before; and I know I
speak for a lot of my colleagues, probably on both sides of the aisle,
that we should finally move forward after the large increases in
gasoline. This is a timely piece of legislation.
The Department of Energy predicts by the year 2025, U.S. oil and
natural gas demand will rise by 46 percent with energy demand
increasing 1 percent for every 2 percent in GDP growth. This increase
in demand at home, coupled with the explosion of demand worldwide, has
led to the increase in the cost of crude oil.
To combat this, and the resulting record gas prices, the American
people today are looking for Congress to act and we are doing it. This
legislation contains a number of provisions that would lower gas
prices. H.R. 6 encourages more domestic production of oil, promotes a
greater refining capacity, and increases the gasoline supply by
stopping the proliferation of expensive regional boutique fuels.

{time} 1530

Mr. Chairman, I urge my colleagues to support H.R. 6 and finally
enact solid, comprehensive energy legislation for the American people.
Mr. Chairman, here we go again. As they say, the third time's the
charm. This is the third Congress in a row we have tried to pass
comprehensive energy legislation. I know I speak for many of my
colleagues in saying I hope we can finally move forward and enact this
very important and increasingly timely legislation.
As we all know too well, energy is the lifeblood of the economy. The
availability of energy at reasonable prices is key to economic growth
and stability. Comprehensive national energy policy must ensure
affordable, reliable energy and also promote national security. H.R. 6
does that and I urge all my colleagues to support it.
The Department of Energy predicts that by the year 2025, U.S. oil and
natural gas demand will rise by 46 percent, with energy demand
increasing 1 percent for every 2 percent growth in GDP. This increased
demand at home, coupled with an explosion of demand worldwide, has lead
to an increase in the cost of crude oil. To combat this and the
resulting record gas prices, the American people are looking to
Congress to act.
This legislation contains a number of provisions that would lower gas
prices. H.R. 6 encourages more domestic production of oil, promotes a
greater refining capacity, and increases the gasoline supply by
stopping the proliferation of expensive regional boutique fuels.
Ending our dependence on foreign oil is not only important to the
economy but also doubly important to national security. Currently, the
U.S. imports about 60 percent of its oil. The Department of Energy
projects this number will increase to 73 percent by the year 2025. In
order to ensure reliable and secure supplies of oil, we have no choice
but to increase the domestic supply.
Another way H.R. 6 increases domestic production of oil is by opening
ANWR to oil and gas exploration. USGS estimates that there is between
5.7 and 16.0 billion barrels of oil that is technically recoverable.
This estimate does not take into account that with new technology, the
share will become higher. A resource of this magnitude cannot simply be
ignored. H.R. 6 goes a long way to end our reliance on foreign oil.
I once again urge my colleagues to support H.R. 6 and finally enact
solid, comprehensive energy legislation for the American people.
Mr. BARTON of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Ohio (Mr. Gillmor), another distinguished subcommittee chairman.
Mr. GILLMOR. I thank the gentleman for yielding me this time and for
his great work on this bill.
Mr. Chairman, this country needs to create a new energy landscape
that begins shrinking our disproportionate reliance on foreign energy
sources and begins building one that places American ingenuity,
producers and consumers at the forefront.
I want to highlight one provision and that is the provision that
significantly strengthens the important Leaking Underground Storage
Tank program. The bill increases State funding from the LUST trust fund
for States containing a larger number of tanks or whose leaking tanks
present a greater threat to groundwater, it requires onsite inspections
of underground storage tanks every 3 years, it institutes operator
training requirements for tank owners and operators, and the
legislation allows States to stop deliveries of fuel to noncompliant
regulated tanks in order to achieve legal enforcement.
These are all strong recommendations not only made by the General
Accounting Office, but they have also been previously passed by the
House. They are proenvironment, antipolluter provisions. I urge their
support and the support of the bill.
Mr. BARTON of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Michigan (Mr. Upton), another distinguished subcommittee chairman.
(Mr. UPTON asked and was given permission to revise and extend his
remarks.)
Mr. UPTON. Mr. Chairman, yes, we have an energy crisis, and the sad
thing is that it did not start this year, but neither did this bill
which started more than 4 years ago. Maybe with gas prices hovering
near $2.50 a gallon, we can finally get this bill to the President's
desk.
I was glad to see that my bipartisan amendment extending daylight
saving time for 2 months was included in this bill. Estimates show that
it will save more than 100,000 barrels of oil for every day that we
extend daylight saving time. I want to remind my colleagues that 2
years ago, we had a blackout, an electric blackout through much of the
Midwest. In this bill we finally impose reliability standards on the
electric industry so that, hopefully, that will not happen again.
I want to say, too, as the cochair of the Auto Caucus, it was
important for the chairman to agree to add $200 million for hybrid and
alternative fuel cell vehicles. We hope that the Senate legislation
will even go more in terms of incentives so that private consumers
going to the showroom are going to be able to take advantage of those
incentives to purchase those vehicles so that we can get those on the
road.
Mr. DINGELL. Mr. Chairman, I yield the balance of my time to the
distinguished gentleman from Virginia (Mr. Boucher).
(Mr. BOUCHER asked and was given permission to revise and extend his
remarks.)
Mr. BOUCHER. Mr. Chairman, I want to thank the gentleman from
Michigan for yielding this time to me and commend him on his
outstanding leadership with regard to the energy bill now before us.
I have supported the passage of comprehensive energy legislation for
the last two Congresses, and I rise in support of the measure that is
before the House this afternoon. While I do not support all of the
sections of the bill, there are a number of provisions in the energy
measure that I believe will enhance our Nation's energy policy and
energy security. For example, the legislation makes valuable
improvements in the area of energy efficiency and renewable energy and
would make permanent the Northeast Home Heating Oil Reserve.
Of particular interest to me is the title on coal which would provide
for the implementation of the Clean Coal Power Initiative to develop
projects that would utilize clean coal technologies. The coal title
also provides for the clean air coal program to enhance the deployment
of fully developed clean coal technologies. Coal is our Nation's most
abundant natural resource for energy production, and it is appropriate
that we take steps to accomplish the goal of incenting coal use and
thereby relieving to some extent the pressure that we are experiencing
at the present time on natural gas prices. The Clean Air Coal Program
would help to advance that objective.
The electricity title in the energy bill contains some beneficial
provisions, and I particularly want to call attention to the smart
metering title which I proposed 2 years ago in order to accelerate the
deployment of real-time metering. When consumers have knowledge of the
savings they can realize by using appliances during offpeak

[[Page H2198]]

hours, the peaks can be flattened and the utilities can avoid the
necessity of having to build some very expensive new generating
facilities.
I am pleased that during the last Congress, we were able to reach a
compromise which is also reflected in the bill before us today
regarding the application of section 210 of PURPA, and the legislation
contains the noncontroversial and much-needed section that would make
transmission reliability standards mandatory.
I am concerned, however, that the bill before us includes a provision
that would cap spending on the implementation of the reliability
standards. I am concerned about that and would hope that when this
measure becomes law, enough money will be available for adequate
enforcement.
I also remain concerned about the total repeal of the Public
Utilities Holding Company Act without ensuring that adequate consumer
protections remain in place. And I have not been convinced that there
is a need to give the Federal Energy Regulatory Commission the ultimate
authority to site transmission power lines.
I support the legislation and I encourage my colleagues to vote for
it. I want to conclude these remarks by complimenting again the
gentleman from Michigan (Mr. Dingell) on his outstanding leadership and
also complimenting the gentleman from Texas (Mr. Barton) of the
Committee on Energy and Commerce. He was willing to work in a
bipartisan fashion in order to establish consensus on a number of these
measures. I applaud him for that willingness and for the effective work
that he has done in bringing this measure to the floor.
Mr. Chairman, I encourage the passage of the bill.
Mr. BARTON of Texas. Mr. Chairman, I yield myself the balance of my
time.
The Acting CHAIRMAN (Mr. Latham). The gentleman from Texas is
recognized for 1 minute.
Mr. BARTON of Texas. Mr. Chairman, I want to compliment the members
of the Committee on Energy and Commerce on both sides of the aisle for
the way we prepared this legislation. It was reported out of committee
39-16 last Wednesday night after a 3\1/2\-day markup. Every amendment
that was offered that wanted to be voted on and considered was.
Most of the members who have spoken in opposition to the bill on the
floor from the Committee on Energy and Commerce had amendments that
were accepted in committee. I think every member that has said
something negative about the bill actually got something in the bill,
and yet it was not exactly the way they wanted it in terms of the total
package, so they are obviously reserving their right to vote against
the bill.
It is a fair and balanced bill. It helps the existing conventional
resources. It also has a title on conservation. It will reform our
electricity grid. It looks to the future in the hydrogen fuel
initiative and the clean coal technology. While it is not a panacea, it
is a bill that is right for this country. It is right to pass it at
this time and send it to the other body so that we can go to conference
later this summer and put a bill on the President's desk.
I would urge a ``yes'' vote on final passage after all the amendments
have been debated tomorrow afternoon.
Mrs. BIGGERT. Mr. Chairman, I claim the time on the majority side for
the Committee on Science.
The Acting CHAIRMAN. The gentlewoman from Illinois is recognized.
Mrs. BIGGERT. Mr. Chairman, I yield myself 3 minutes.
As chairman of the Science Subcommittee on Energy, I rise today in
strong support of H.R. 6, the Energy Policy Act of 2005, particularly
those provisions that originated with the Science Committee and are now
contained in Title IX of the bill, the Research and Development title.
H.R. 6 represents a good investment in advanced, cutting-edge energy
technologies to expand and diversify our energy supply, meet growing
demand and reduce the environmental impact of energy production and
use. The only changes to the R&D title from the 108th Congress are ones
that reflect the latest research, the emergence of innovative
technologies and new ways of thinking about our power problems.
Most noteworthy is a pilot grant program to encourage the design and
construction of energy-efficient buildings that demonstrates new
efficiency technologies. Also worth mentioning are two new additions to
the subtitle on renewable energy R&D.
First is a grant program for States to support the development and
demonstration of solar technologies nationwide. Second, the bill
requires the Department to work with industry to create biorefinery
demonstration projects. As a result, this bill does more for renewable
energy R&D than any other energy bill previously considered by the
House.
The bill also recognizes that advanced energy technologies do not
grow on trees. Instead, they grow out of basic scientific research like
those that are supported by the DOE at our universities and national
laboratories. That is why H.R. 6 increases authorized funding to the
DOE Office of Science which supports over 40 percent of basic research
in the physical sciences, more than any other Federal agency. This
funding will support basic fusion research and greater use of
supercomputers for energy applications, as well as systems biology
research and the construction and operation of scientific facilities
like the rare isotope accelerator.
America cannot hope to compete in the world economy based on labor
costs. Our competitive strength is the depth of our ingenuity and
technology, and the science programs in this bill are the basic
building blocks of our technological edge.
In closing, I want to thank the leadership of the Committee on
Science and my colleagues on the committee for their contributions to
the development of the provisions in the R&D title of H.R. 6.
Mr. Chairman, I reserve the balance of my time.
Mr. GORDON. Mr. Chairman, I yield myself such time as I may consume.
First I would like to thank the gentleman from New York (Mr.
Boehlert), chairman of the Committee on Science, and the gentlewoman
from Illinois (Mrs. Biggert), chair of the Subcommittee on Energy, for
their hard work and cooperation in developing the foundation of Title
IX, the R&D title of this bill.
A stable domestic energy supply is essential to the economic well-
being and security of our Nation. While the bill on the floor today has
provisions that are not acceptable to many Democrats and Republicans,
there are good points worth mentioning in Title IX. Of particular note
are the provisions ensuring greater DOE cooperation with the smaller
colleges and universities who will train our next generation of
scientists, mathematicians, technicians and teachers. The Department,
as well as the traditional large research universities, could benefit
from the enormous pool of talented researchers in the Nation's smaller
colleges and universities, and I encourage greater collaboration.
I would also like to highlight the work of several of our Members on
key components of DOE research and development in Title IX:
The interest of the gentleman from California (Mr. Honda) in the
progress of the Next Generation Lighting Initiative, the Stanford
linear accelerator and the Joint Genomics Institute and his work with
the gentleman from Connecticut (Mr. Larson) on transit bus
demonstrations of fuel cells;
The continued dedication of the gentlewoman from California (Ms.
Woolsey) and the gentleman from Colorado (Mr. Udall) to clean,
renewable and efficient energy technologies;
The work of the gentleman from Illinois (Mr. Costello) to ensure that
utilization of our vast coal resources only gets cleaner and more
efficient;
The vision of the gentlewoman from California (Ms. Zoe Lofgren) in
support of domestic fusion energy research and international fusion
projects;
The work of the gentleman from Tennessee (Mr. Davis) to ensure good
science continues at Oak Ridge National Laboratory, particularly in the
area of high-end computing;
The efforts of the gentleman from North Carolina (Mr. Miller) to
establish a nationwide network of advanced energy technology transfer
centers to get technologies off the laboratory shelf and into the
marketplace;
Finally, the tireless commitment of the gentlewoman from Texas (Ms.

[[Page H2199]]

Jackson-Lee) to research and development at historically black colleges
and universities and other minority-serving institutions.
The Committee on Science contributed virtually all of Title IX, the
research and development title of this bill. While research and
development programs typically have not been controversial, I believe
the Title IX provisions represent a major part of this legislation. The
R&D programs authorized in this bill will provide the means to produce
energy that this country will need for the foreseeable future.
Mr. Chairman, I reserve the balance of my time.
Mrs. BIGGERT. Mr. Chairman, it gives me great pleasure to yield 5
minutes to the gentleman from New York (Mr. Boehlert), the illustrious
chairman of the Committee on Science.
(Mr. BOEHLERT asked and was given permission to revise and extend his
remarks.)
Mr. BOEHLERT. Mr. Chairman, with great regret, but with even greater
conviction, I rise in opposition to this bill. While this bill
certainly has some worthy provisions, including those reported out by
our committee, overall this bill is a step backward. This bill will not
lessen our dependence on foreign oil, and it will do nothing to reduce
energy prices. It will increase the deficit, weaken our economy,
compromise our national security and endanger our environment.
The supporters of this bill are certainly right about one thing. We
desperately need a good national energy policy. This measure does not
pass that test.

{time} 1545

Our growing dependence on foreign oil puts us at the mercy of
unstable and unfriendly foreign regimes. It gives terrorists additional
targets and puts money in their hands. It weakens the dollar by
worsening the balance of trade. We would start every day $500 million-
plus in the hole on our balance of trade because of the imported oil.
It pumps money out of the domestic economy and into the hands of those
who would wish us ill.
In short, our oil dependence represents a significant and growing
threat to our national security, and national security should be first
and foremost in the minds and hearts of everyone in this Chamber.
So what do we do to reduce our dependence on foreign oil? Yes, we
need to increase the supply of fossil and nuclear and renewable energy.
But most importantly, we need to become more energy efficient. And
does this bill do to make us more energy efficient? Virtually nothing.
The Federal Energy Information Administration found that last year's
energy bill would have almost no impact on energy demand and energy
prices; and that bill, if anything, made more of an effort to tame
consumption. The Alliance for an Energy Efficient Economy has estimated
that this year's energy bill would not save a single barrel of oil by
2020.
That is both tragedy and farce. We know how to treat our oil
addiction. We can make appliances more energy efficient without
inconveniencing anyone. We can make our cars more efficient without
sacrificing safety. My CAFE amendment would reduce oil consumption in
2020 by 2 million barrels a day. That is more than twice the amount
that is expected per day from drilling in the Arctic National Wildlife
Refuge.
What does this bill do instead of trying to make us more energy
efficient? At a time of fiscal crises and record oil prices, the bill
provides new mandatory spending that will go directly to the oil
industry, and it provides mandatory breaks for the oil industry on
royalties.
The bill provides massive tax breaks for profitable oil companies and
next to nothing for new technologies that could help wean us from
foreign oil. Here is what the President said last week on that issue:
``With $55 oil we don't need incentives to oil and gas companies to
explore.'' The President's budget devoted 72 percent of its proposed
energy tax incentives to alternatives. This bill provides just 6
percent to alternatives while providing more than a billion dollars in
additional tax breaks.
We would not have to look far to come up with better ideas. While the
House has been writing a bill based on ideological purity rather than
careful analysis, others have come forward with bipartisan, sensible
balanced approaches to energy policy. Groups like the National
Commission on Energy Policy and the Alliance to Save Energy and the
Energy Future Coalition have all offered carefully considered proposals
that could have formed the basis of an effective bill with Republican
credentials.
But instead, we have decided to close our minds and open our purse in
a way that will harm taxpayers and consumers and weaken our economic
health and national security.
We can do better. We ought to do better. We have an obligation to do
better. Let us defeat this bill and start over.
Mr. GORDON. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California (Ms. Woolsey).
Ms. WOOLSEY. Mr. Chairman, the chairman of the Committee on Science
knows what is right. The energy bill before us today is bad for the
consumer, bad for the environment, and it does not make us energy
independent. In fact, it is the ultimate reason we are insecure as a
Nation.
In fact, by promoting the interests of corporations over consumers
and pollution over conservation, this bill makes the United States much
less secure.
H.R. 6 will harm more than just our environment, however. America's
continued reliance on Middle East oil for the majority of our energy
needs is the single largest factor that contributes to our lack of
national security. It is time we stopped all efforts to drill in ANWR
because this is only a stop-gap measure. Instead, we need real energy
independence, and that will only come when we start focusing our
efforts as a Nation on clean, renewable sources of energy,
conservation, and efficiency. It would be hypocritical for anyone who
cares about our Nation's well-being to vote for this legislation. I
urge my colleagues, join me, vote against it.
Mrs. BIGGERT. Mr. Chairman, I yield 2 minutes to the gentleman from
South Carolina (Mr. Inglis), a member of the Committee on Science.
Mr. INGLIS of South Carolina. Mr. Chairman, I thank the gentlewoman
for yielding me this time.
Mr. Chairman, I agree with the chairman of the Committee on Science.
We have an opportunity to do better.
I hope that we do better as we improve the hydrogen title of this
bill. Perhaps the other body will have a title that will work a little
bit better in the hydrogen area, and I hope that we will catch the
vision of a different way of getting around.
Imagine that one takes delivery today in Spartanburg, South Carolina
of a brand new BMW. It runs on hydrogen. It is powered and controlled
by a computer, maybe made by IBM, maybe software by Microsoft. These
are companies committed to making hydrogen and to making smart cars
work. They get in the car, they program it to go somewhere, they take
their hands off the wheel. It seems like science fiction, but the good
news is that we on the Committee on Science are in the business of
making science fiction into reality, and it is not that far away.
If we can make a commitment like we made when we decided to go to the
Moon, we can get there. We as a Nation can decide that now is the time
to really commit to forging ahead to create a hydrogen economy. Now is
the time to be spending good money on that. It is time to stop simple
spending and start thoughtful investing. There is a big difference. In
this bill we have the opportunity to do just that, to invest serious
money in the technology that can lead us to a hydrogen economy. If we
do that, we will do good work for the American people and we will
lessen our dependence on Middle Eastern oil.
And, by the way, it is also about jobs. If we can retool the
automobile and make it so that we not just develop the technology but
also produce it here, we can tremendously expand the economy of the
United States, providing jobs and, while doing that, cleaning up the
environment and reducing the oil pressure on the Middle East. That is a
trifecta. Let us get about it with a better title.
Mr. GORDON. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman
from California (Mr. Honda).
(Mr. HONDA asked and was given permission to revise and extend his
remarks.)

[[Page H2200]]

Mr. HONDA. Mr. Chairman, there are very few things I like about this
energy bill. However, I do support title IX, and I am proud to be the
ranking member of the Committee on Science's Energy Subcommittee, which
authored this portion of the bill.
We have included such beneficial programs as energy efficiency and
renewable energy research and development in the areas of solar, wind,
geothermal, bioenergy, and other alternative energy sources that will
be critical to our future energy independence.
Also included are research programs into distributed energy and
electric energy systems, which will make us less reliant on fragile
transmission grid, and the next generation lighting initiative, which
will reduce future demand for electricity through efficiency.
We have also increased support for the basic sciences at the
Department of Energy generally and focused on several programs in
particular, such as nanotechnology research and development, advanced
scientific computing research, and fusion energy sciences.
It is a credit to the collegial bipartisan nature of the Committee on
Science members and staff that all of these important provisions are
included in a product that both sides of the aisle can support. There
is so much agreement that I do not have any amendments to offer here
today; and as a side bar, I would like to also commend the gentleman
from New York (Mr. Boehlert), chairman; and the gentleman from
Tennessee (Mr. Gordon), our ranking member, for this kind of collegial
activity.
Unfortunately, I cannot say the same thing about the rest of the
bill. Drilling in the Arctic National Wildlife Refuge and liability
waivers for producers of MTBE are not going to reduce gas prices today
and are not steps toward a sustainable energy future. And in contrast,
the bill does not address increasing fuel economy standards, which is a
concrete step we can take to reduce energy consumption.
Even President Bush, an oil man, admits that with $55 a barrel of
oil, we do not need incentives for oil and gas companies to explore. He
recently said, ``There are plenty of incentives. What we need is to put
a strategy in place that will help this country over time become less
dependent.''
This bill does not do enough to make this Nation less dependent on
energy, be it from imported or domestic sources. We need a bill that
focuses on our long-term future needs, not one that is stuck in the
past.
I urge my colleagues to oppose this bill.
Mrs. BIGGERT. Mr. Chairman, I yield for the purpose of making a
unanimous consent request to the gentleman from Illinois (Mr. Kirk).
(Mr. KIRK asked and was given permission to revise and extend his
remarks.)
Mr. KIRK. Mr. Chairman, I am concerned this bill will not clear the
Budget responsibility.
H.R. 6 technically does not violate the Budget Act because it is an
unreported bill, and Budget Act points of order generally only apply to
reported bills. The bill generally is inconsistent with the 302(a)
allocations for both the 2005 and House-passed 2006 budget resolutions.
Section 2053 of the bill does, however, create a new entitlement
program outside the budget window (specifically, FY 2016). It uses a
portion of outer-continental receipts to fund new mandatory state-run
conservation, education, and infrastructure programs. Estimates
indicate that the annual cost of this provision could be in the range
of $1.75 billion. If H.R. 6 were a reported bill, such a provision
might subject the bill to a section 303 point of order.
We just passed a Budget only after clarifying a point of order would
defeat any Appropriations bill over Budget.
It appears that we have to expand this point to protect against bills
like this.
Mr. GORDON. Mr. Chairman, I have no further requests for time, and I
yield back the balance of my time.
Mrs. BIGGERT. Mr. Chairman, I yield myself such time as I may
consume.
In closing, I express my appreciation for the leadership of the
Committee on Science and my colleagues on the committee for their
contributions to the development of the provisions in the R&D title of
H.R. 6. They are bipartisan, forward thinking, balanced, and speak to
the importance that we as a Congress place on the role of technology in
our energy future.
I would also express my appreciation for the extremely professional
staff of all the relevant committees, as well as the key leadership
staff who worked diligently on this bill for months and in some cases
years. I want to thank the able staff of Committee on Science and its
Energy Subcommittee. Their contributions and those of countless others
have resulted in a better bill which I urge my colleagues to support.
Mr. Chairman, I yield back the balance of my time.
Mr. GORDON. Mr. Chairman, I ask unanimous consent to take back the
balance of my time for the purpose of yielding time to the gentlewoman
from Texas (Ms. Jackson-Lee).
The Acting CHAIRMAN (Mr. Latham). Is there objection to the request
of the gentleman from Tennessee?
There was no objection.
Mr. GORDON. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the distinguished
gentleman for yielding me this time.
First of all, I am grateful that the Committee on Science had an
opportunity to provide insight into this legislation.
I have an amendment that I will be discussing later on in the day
that speaks to the purpose of my standing today in general debate, and
that is to make, I think, the declaration that we clearly need to have
an energy policy.
My amendment will engage farmers and ranchers in Texas and all over
the Nation to give them extra training and resources to assess the
availability and viability of bioenergy. But it is important that,
although this legislation may not be all that we want it to be, the
very fact that there is going to be a review of electricity and
transmission is important, the very fact that we acknowledge the high
cost of gasoline, even though I might say to my distinguished friend
from Tennessee I offered an amendment that might determine why there is
such an increase in gasoline prices, why the transportation costs are
so high, and of course that was not allowed.

{time} 1600

But we will have a number of debates dealing with the price of
gasoline.
This is not a ``get-you'' time in America. This should not be, We get
the industry or we get the consumer. This needs to be a time when we
sit down and reconcile over these very frightening issues.
I want jobs in my community. I want a thriving energy industry. In
fact, I had an initiative that would report on the deposits in Texas
and Louisiana offshore so that we could be more independent of foreign
oil and do more domestic drilling in a safe and environmentally
manageable way.
This bill today will allow us to debate these questions.
Am I disappointed? In some sense, yes, that global warming is not
mentioned, that more of the environmental emphasis is not mentioned;
but if we do not move from point A to point B to point C to have a real
energy policy, there will be no way, if you will, to ensure for the
American people a safe and secure America.
It is a question of energy security. I would ask my colleagues to
consider this legislation as we move forward.
Mr. Chairman, I speak today with mixed emotions. While I realize the
importance of having a comprehensive energy bill, I am concerned that
the bill does not do enough. Please do not misunderstand me, there are
good aspects to the bill. For example, the bill provides for much
needed advances in Energy Efficiency, Renewable Energy, and Nuclear.
However, there is still much work to be done. To this end, I plan to
offer an amendment and work with Members, and industry with hopes of
improving upon some key aspects of the bill.
Before going any further, I think it is important to touch upon the
question everyone is asking, ``Why Are Gas Prices So High?'' Whether
right or wrong, the common answer has been that supply is not able to
keep up with demand. According to recent studies, overall prices are
rising because of the razor-thin supply and demand balance in the
global crude oil market (i.e. the increase demand for oil in China and
India has played a major role in driving up oil prices around the
world). In addition, the situation in Iraq has not helped.
Unfortunately, there seems to be no end in sight to this problem.
According to the Energy Information Administration, EIA prices in
2005 are projected to remain high, at an expected average of $2.28

[[Page H2201]]

per gallon for the April to September summer season, 38 cents above
last summer. Similar high motor gasoline prices are expected through
2006. Monthly average prices are projected to peak at about $2.35 per
gallon in May. Summer diesel fuel prices are expected to average $2.24
per gallon. As in 2004, the primary factor behind these price increases
is crude oil costs.
In the United States, additional changes in gasoline specifications
and tight refinery capacity can be expected to increase operating costs
slightly and limit supply flexibility, adding further pressure on pump
prices. Despite high prices, demand is expected to continue to rise due
to the increasing number of drivers and vehicles and increasing per-
capita vehicle miles traveled.
While these may be the facts, it does not sit well with my
constituents back in Texas, and for that matter with all Americans.
Thus, as the bill moves along the legislative process, I will be
working with Members and industry to establish a sense of the Congress
that the Secretary of Energy, acting through the Administrator of the
Energy Information Administration, should commence an immediate
investigation on the causes of high gasoline prices in the United
States and, in collaboration with the petroleum industry and the
Congress, develop a solution to such prices. At the rate we are going,
the average American will not be able to afford to drive.
It is important for me to mention that I will also work with Members
of Congress to encourage the Secretary of the Interior, in consultation
with other appropriate Federal agencies, every 2 years, to transmit a
report to the Congress assessing the contents of natural gas and oil
deposits at existing drilling sites off the coasts of Louisiana and
Texas. It is important that we do our best to become an energy
independent Nation. This can only be done through the full utilization
of energy sources within our Nation's geographic influence. Currently,
most if not all, of the nations we import oil from are either directly
or indirectly hostile towards the U.S. Many of these nations provide
funding to terrorist groups who oppose the U.S. and at any time could
decide not to sell oil to us. Where would that leave us? It is
important that we know what we have right hear at home. The
aforementioned two-year assessment would allow an inventory of existing
oil and gas supplies and an evaluation of techniques or processes that
may exist in keeping those wells protected.
Needless to say, I represent residents and businesses that call the
18th Congressional District of Texas their home. Energy and energy
related companies and dozens of other exploration companies are the
backbone of the Houston economy. For this reason, the 18th
Congressional District can claim well-established energy producing
companies and suppliers as well as those engaged in renewable energy
exploration and development.
I believe that the effects of rising energy prices have had and will
continue to have a chilling effect on our Nation's economy. Everything
we as consumers eat, touch or use in our day-to-day lives have energy
costs added into the price we pay. Today, our society is in the midst
of major sociological and technical revolutions, which will forever
change the way we live and work. We are moving from a predominantly
industrial economy to an information-centered economy. While or society
has an increasingly older and longer living population the world has
become increasingly smaller, integrated and interdependent.
As with all change, current national and international
transformations present both dangers and opportunities, which must be
recognized and seized upon. Thus, the question arises, how do we manage
these changes to protect the disadvantaged, disenfranchised and
disavowed while improving their situation and destroying barriers to
job creation, small business, and new markets?
One way to address this issue is to ensure that this Nation becomes
energy independent through the full utilization of energy sources
within our Nation's geographic influence. Before concluding, let me say
that as legislators, we must boldly define, address and find solutions
to future energy problems. We know that the geological supply of fossil
fuel in not infinite, but finite. We know that our Nation's best
reserves of fuel sources are in the forms of coal and natural gas,
among others.
I would only caution my colleagues, administration officials,
academics, industry leaders, environmental groups and consumers not to
assume that we have learned all that is there is to know about energy
extraction, refining, generation, or transportation but that we are
still learning. We must bring to this debate a vigor and vitality that
will enliven our efforts to not have a future of energy have and have
nots, due to out of control energy demand with few creative minds
working on the solution to this pressing problem.
The CHAIRMAN. Pursuant to the rule, the gentleman from California
(Mr. Pombo) is recognized for 10 minutes.
Mr. POMBO. Madam Chairman, I yield 2 minutes to the gentleman from
Nevada (Mr. Gibbons), the subcommittee chairman.
Mr. GIBBONS. Madam Chairman, I rise in strong support of H.R. 6.
For too many years, Madam Chairman, our domestic energy policy has
languished, driving investment overseas and increasing our reliance on
foreign energy resources. Yet, we continue the cycle of tolerating
irresponsible energy policies, continuing to discourage investment in
domestic energy production and, subsequently, becoming more dependent
on foreign sources of energy.
Relying on foreign and, sometimes, hostile nations for energy and
minerals jeopardizes our national security, Madam Chairman. And for the
safety and security of our homeland, I want the United States to be
reasonably self-sufficient in meeting the demands of our current energy
consumption.
H.R. 6 makes strides in ensuring our domestic security by
streamlining the permitting process for renewable and traditional
sources of energy, while protecting the integrity of the environmental
review process. H.R. 6 also contains provisions to spur production of
renewable energies such as geothermal so we can reduce our reliance on
traditional sources.
Through this important legislation, we will have increased ability to
utilize the vast renewable energy resources on our public lands in an
environmentally responsible manner.
I urge all of my colleagues to support the passage of this
legislation that will allow us to capitalize on our Nation's energy
exploration and development technology, commitment to environmental
quality and conservation, and work ethic to develop our domestic energy
resources.
The CHAIRMAN. Pursuant to the rule, the gentleman from West Virginia
(Mr. Rahall) is recognized for 10 minutes.
Mr. RAHALL. Madam Chairman, I yield myself such time as I may
consume.
I rise in opposition to the pending legislation, surprise, because it
will do absolutely nothing to lower the price of motor fuel and reduce
America's dependence on foreign oil.
This legislation is antitaxpayer, anticonsumer, and
antienvironmental. It is social security for the oil industry. We have
before us a bill that squanders what could have been a bold stroke for
American energy independence. It could have been visionary, and it
could have been daring in developing new energy technologies and fuel
sources.
Instead, we have before us a bill which contains a litany of various
tax breaks and polluter protections for energy producers who are
already experiencing record profits at the expense of the American
public.
The bill contains $8 billion in tax breaks, largely for well-heeled
oil and gas conglomerates who are already milking our constituents at
the pump. In the Resources title alone, CBO says there is nearly a half
a billion dollars of direct spending to subsidize the oil and gas
industry over the next 10 years. To put it bluntly, if the taxpayer is
feeling the pain of an energy crisis, it is coming from the derrick
sticking out of his back pocket, and this measure does nothing to ease
it.
Even President Bush recently stated, ``I will tell you, with $55 oil,
we don't need incentives to oil and gas companies to explore. There are
plenty of incentives.'' These are President Bush's own words.
But has that stopped the Republican majority from bestowing such
largesse on some of their biggest benefactors? Of course not. Because
when one pulls the curtain aside on this bill, what we find is a wacky
old fellow pulling the manipulating levers, reaching deep into the
Treasury and deep into the pockets of ordinary Americans.
This bill, as I said, could have been a bold stroke, but it missed
that mark. It ignores coal, America's most abundant energy resource. It
pays mere lip service to coal. There is nothing here that would
actually encourage an electric utility to install or invest in clean
coal technology. There is nothing here that would advance bona fide
technologies for coal gasification or liquefaction to run our factories
and vehicles.
And, to add insult to injury, the single substantive coal provision
in this bill favors Western Federal coal, primarily in the Powder River
Basin of

[[Page H2202]]

Wyoming, over all other coals. It would give Federal coal from that
region an artificial, competitive advantage to the detriment of coal
producers and consumers in other States. Already, this Western coal has
infiltrated utility markets traditionally served by Appalachian and
Midwestern producers. To now provide these producers of Federal coal
with special treatment in the form of relief from competitive bidding
and the payments of royalties is unseemly and has no part in what is
supposed to be a national energy policy bill.
It is, in effect, a direct assault upon all other coal, including
coal from my home State of West Virginia, and it is a direct assault on
consumers, jobs, and the economy and the communities which rely on coal
from States like West Virginia who are not given special treatment
under this provision.
Yet, under the rule governing debate on this bill, I was denied the
ability to offer an amendment to strike this provision, an effort that
came very close to succeeding when the House last considered this bill.
Could it be that because I came so close to knocking it out of this
bill on the House Floor of the last Congress I was denied that
opportunity this year? Could it be because the Republican leadership
fears debate on this provision and will only allow amendments that they
can bet the House will fail to pass? All of this, all of it is why
every newspaper in my congressional district that has editorialized on
this bill has editorialized against this bill.
We are engaging in an exercise of microwave legislating today. The
Republican leadership has hauled out the remains of last year's freeze-
dried energy bill and are seeking to warm it up for yet another
taxpayer-financed feast.
The people of America will not be played for fools. They will not be
made to believe that all of our energy problems will go away if we
simply grant misplaced and inappropriate tax cuts to energy fat cats,
and if we allow polluters to get off the hook and shortchange the
health and safety protections of our citizens.
I urge a no vote on the bill.
Madam Chairman, I reserve the balance of my time.
Mr. POMBO. Madam Chairman, I yield 1\1/2\ minutes to the gentleman
from New Mexico (Mr. Pearce), the subcommittee vice chairman.
Mr. PEARCE. Madam Chairman, I rise today in support of the energy
bill that we are discussing on the floor.
Madam Chairman, the absolute truth is that Americans are paying more
at the pump today than ever before. Home heating costs have escalated
dramatically. These things are both reflections of the lack of an
energy policy. All we are suggesting in this energy bill is that we
need to recognize the dynamic forces that are at play in today's
economy, and that we need to take steps to correct it.
For instance, natural gas in this Nation is hovering in the $7 range,
but if we look over in the Asian areas and in Russia, it is 95 cents
and 70 cents. What is happening is that we are outsourcing jobs to
those other nations because they are paying one-tenth the price for
natural gas that we are paying here, and yet our friends on the other
side of the aisle some days want to talk about outsourcing jobs and the
horrific effect that it has on the economy; and today we are doing
something factual about it, and yet they want to turn an eye and say,
That is okay, send those jobs; we probably did not need them to start
with.
They would have us believe that what we are facing and what we are
giving is simply a handout to the oil companies, and what we are doing
is simply trying to develop new sources of oil that is extremely
expensive to reach. We are drilling on some offshore platforms that
cost billions of dollars to set in place. We are drilling on those with
great risk that we will lose money, and what we are simply saying is
that deep well incentives should be in place.
Now, the incentives that are in place for onshore production are
either very difficult areas to drill in or the incentives only kick in
after the price falls to a certain level.
Madam Chairman, it is time for us to pass an energy bill. The
consumers in this Nation depend on it, and they are depending on
Republicans because our friends on the other side of the aisle refuse
to help.
Mr. RAHALL. Madam Chairman, I yield 4 minutes to the distinguished
gentleman from California (Mr. George Miller), the distinguished former
chairman of the Committee on Resources.
Mr. GEORGE MILLER of California. Madam Chairman, I thank the
gentleman for yielding me this time.
This bill, first and foremost, should be rejected by this Congress,
because it is very bad for the consumers, it is a very bad deal for the
taxpayers, it is lousy for the environment, and it certainly does not
do much for the American economy.
This bill is another missed opportunity to take America into the
future, to take America into the leadership around the world in energy
production, energy innovation, and energy technology; to create a new
generation of important products, and a new generation of jobs.
But what this bill does not understand is that energy sufficiency and
sustainability is very different from energy oil independence. The
first is achievable in the national interest and the other is not. Oil
independence is not achievable in this bill or in any bill you can
bring to the floor.
If we were really seeking to strengthen America's hand with respect
to energy and our economy, we would do all that is possible to develop
a national sustainable energy policy that would minimize our dependence
on foreign oil. That is not this bill.
Rather than placing too much of our emphasis on new oil supplies, we
would build a national energy policy that is based upon the strength of
our country, rather than its weaknesses. Those strengths are the
marketplace, innovation, technology, and capital. If these economic
forces were truly unleashed to provide a national energy policy, the
role of coal and oil would be greatly diminished and would still be
important, but diminished.
America's energy policy would evolve into one where business
decisions, capital allocations, research commitments, and environmental
policy would coincide to make businesses more efficient and productive,
develop new products and services, would expand and cover the
environment, would be easier and less expensive and clean.
Such a policy demands a synergy of most parts of national energy
policy. To date, these ideas have been treated as a stepchild, as they
are in this bill. To do so, the Congress would have to stop thinking
about energy policy as an extension of the past. They would have to
think about it as going out to embrace the future, with American
technology, American ingenuity, American talent, American capital, and
the American marketplace. America should go out and embrace the future,
rather than dumping billions and billions of dollars into trying to
bring the past a little bit further forward, to bring the fossil fuels
a little bit further forward.
That is the mistake of this bill, that is the tragedy of this bill,
and that is the missed opportunity. That is the reason why this bill
does so little for the consumer.
In fact, it harms the consumer at the pump by increasing the price of
gasoline. That is why it is such a bad deal for the taxpayer, because
the taxes are used for old production, for old ideas, not for
innovation, not for the future, and not for a sustainable energy
policy. That is why it is so bad for the environment, because they use
tax policy to drive environmental decisions that otherwise would not be
made and, of course, that is why it is bad for the economy, because it
continues our dependence. In fact, it drives us deeper into the
dependence on the most unstable countries in the world, into the hands
of those countries that simply cannot provide stable environments for
the production of those energy resources.
That is why a different policy would be about a sustainable energy
policy, not trying to achieve oil independence, or foreign oil
independence as this bill does. It is unfortunate, because what we do
is we miss the opportunity to bring about what the best and the
brightest prospects of America have always offered, and that is new
innovation, new technologies, new discoveries, new capital formation,
and a new economy. But this bill does not do it.

[[Page H2203]]

This bill resides in the past century. This bill resides with the old
industries. This bill resides with the old ideas, and it certainly
resides with the old and tired subsidies that milk the taxpayers, to
turn around and give them to now the most profitable companies in the
American economy at this time.
It is very unfortunate, and it should be rejected.

{time} 1615

Mr. POMBO. Madam Chairman, I yield 1\1/2\ minutes to the gentleman
from Pennsylvania (Mr. Peterson).
Mr. PETERSON of Pennsylvania. Madam Chairman, I think I am on a
different bill than I just heard described here. I applaud the energy
efficiency and conservation in this bill. I applaud the increasing of
renewable technologies in this bill. I applaud the hydrogen fuel cell
program in this bill. I applaud the next-generation nuclear in this
bill. I applaud the clean coal technology.
I applaud the incentives for deep gas drilling. That is the one issue
I do not think we do enough in this bill. I believe we need to do much
more to increase the supply of natural gas, and I hope in conference we
can.
Current natural gas prices are exporting thousands of American jobs,
the best jobs we have, the chemical plants, fertilizer factories, and
those who melt steel and ore and use a lot of national gas.
We as a country have an island to ourselves with natural gas; they
are not world prices. When everybody pays $50 for oil, we have the
highest prices for natural gas of all modern countries, and we are
losing the companies who use large quantities of it.
Just to compare, we are 40 percent higher on natural gas than Europe.
We are 50 percent higher than Japan. We are 600 percent higher than
South America. We are 800 percent higher than Russia. We heat our
homes, our schools, our hospitals, and our businesses with natural gas.
It is the bridge to hydrogen. All hydrogen today generally is made
from natural gas; it is the easiest way to make it. It can assist us in
transportation, with our buses, taxi cabs, delivery trucks, by using
natural gas rather than oil. We need, in the final bill, to have a much
stronger chapter with natural gas; it is the one area that I think we
need stronger in this bill.
Mr. RAHALL. Madam Chairman, I yield the remainder of my time to the
gentleman from Washington (Mr. Inslee), a valued member of our
Resources Committee.
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. Madam Chairman, the best way that I can characterize this
bill is that it is a Jurassic Park bill in that it is about dinosaurs,
of dinosaurs, and in a sense by dinosaurs.
It depends on the hope that somehow dead dinosaurs will appear
underneath the continent of the United States where they just do not
exist. We consume 25 percent of the oil; we have only 3 percent of the
world's oil reserves. If you drill in Mt. Ranier National Park, the
Arctic and Yosemite, the oil is not there; the dead dinosaurs decided
to die somewhere else.
This is a doomed policy of searching for dead dinosaurs. And it is a
dinosaur-like philosophy that we should decide to subsidize technology
being developed in the late 1800s in 2005. We should be giving these
subsidies to the nascent wind, solar, wave power, energy-efficient cars
so we can build energy-efficient cars here rather than in Japan.
You do not give mother's milk to a 65-year-old person; you give it to
the nascent infant industries that need it. That is not what happened
to this bill, where 94 percent of the subsidy goes to an industry, the
most profitable in American history; one company had $8 billion profit
in the third quarter last year on your $55 a barrel oil.
That is what is going on in this bill. What we should be doing is
hearing lessons from our successful past, where we showed where we
increase the efficiency of our cars; that is an energy future. We need
the new Apollo energy plan, a visionary high-tech plan, not a dinosaur-
like plan.
Mr. POMBO. Madam Chairman, I yield 2\1/2\ minutes to the gentlewoman
from Wyoming (Mrs. Cubin), the full committee vice chairwoman.
Mrs. CUBIN. Madam Chairman, I rise today in strong support of H.R. 6,
the Energy Policy Act of 2005.
Wyoming is often called the energy basket of America, but people in
my State who are taking out emergency loans just to fill up their
pickup's tanks would not know it. In my home town of Casper, gas is
$2.10 a gallon; in Cheyenne it is almost $2.20. It is $2.30 in Riverton
and $2.40 in Jackson.
Madam Chairman, that is just too much. Some of the people around the
country who pay close to $3 a gallon might think Wyoming's prices are a
bargain. But remember, Wyoming covers almost 100,000 square miles. That
is a lot of miles on the highway to do business, and a lot of money at
the gas pump.
Wyoming cannot support subways or mass transit when we do not have
masses in the first place. This spike in gas prices has real
consequences for people in Wyoming whose drives to work are measured
not by the length of the country and western song on the radio, but by
the entire country and western album.
When our country was threatened by terror attacks on 9/11, Congress
acted. Now Congress is called upon to act again. To keep our economy
sound in Wyoming, we must pass this energy plan.
This bill will cut our reliance on foreign energy and put our focus
where it belongs, on domestic production. Would you rather get the oil
we need from the Middle East or from midwest Wyoming? I know where I
stand, and I have a number of bills within this package that address
domestic energy production.
It seems I have spent most of my congressional lifetime helping to
develop this package, so I know a little bit about it. It will
strengthen America's standing as the Nation with the most strict
environmental laws on Earth. It will streamline the process to safely
explore for new energy sources and put us on the road to energy self-
sufficiency.
The opponents of this bill urge a ``no'' vote because it is not a
quick fix at the pump. Madam Chairman, since when does a quick fix
actually fix anything? When does a ``no'' vote without an alternative
actually fix anything? What America needs and what we have needed for a
long time, for more than a generation, is a comprehensive energy plan.
I urge my colleagues to support the plan before us today.
Mr. POMBO. Madam Chairman, may I inquire as to how much time is
remaining.
The CHAIRMAN. The gentleman from California (Mr. Pombo) has 3\1/4\
minutes remaining.
Mr. POMBO. Madam Chairman, I yield the balance of my time to myself.
I guess here we go again. You know, we have had the opportunity in
the House four or five times to debate the energy bill. And I look at
the history of energy policy in this country and the efforts of
Congress to try to deal with the very real energy demands that we have
today in this country.
We are not providing enough energy to meet the demands that we have.
You know, you go back 30 years ago, and the United States was dependent
on foreign energy about 30 percent. About 30 percent of our oil came
from foreign sources.
We did very little to deal with that. There was a pledge made by
then-President Carter that we were going to become independent. The
President and succeeding Presidents have talked about becoming
independent from foreign oil. But we did not adopt the kind of policies
that we had to to increase the amount of domestic production so that we
were not so dependent on foreign oil.
I look at it today and nearly two-thirds of the energy that we
consume in this country comes from foreign countries. And that is a
direct result of the failure on the part of Congress to pass a national
energy policy. We have not addressed that. I look at what we are doing
wrong in terms of producing additional energy in this country. And I
think if you listen to the debate from some of my colleagues, you know
what we are doing wrong. Yeah, you know, we did not have a lot of
dinosaurs die under Yosemite or Yellowstone, you are right; but we had
a whole heck a lot of them die in the Arctic plains.
There is oil and gas in Alaska. It is there. We all know it is there.
And yet

[[Page H2204]]

we still have the same people year after year after year coming down,
whether gas is $20 a barrel or $60 a barrel they are still opposed to
doing it. We have the same people come down here year after year after
year that opposed putting a pipeline to move that gas from Alaska to
the lower 48 States.
We have the same people who come to the floor year after year and
oppose every single attempt that is made to increase the amount of
energy produced in this country. Year after year they oppose it.
Last year we had an amendment to make it easier to site renewable
energy on Federal lands. And the same people that are down here today
opposing this bill opposed that bill on renewable energy. Yeah, you
know, it all sounds great. You can come down here and talk about how we
need more renewable energy.
But when you have a chance to vote for it, you vote no; and you do it
every single time. You know, we hear this over and over again.
You know, when the bill moved through the committee, we had 20 or 25
amendments. Not a single one of those amendments was a partisan vote, a
party-line vote. Every single one of them we had members of the
minority and majority that joined together to either pass or defeat the
amendment. There was so much support for this bill coming out of the
Resources Committee, it passed on a voice vote.
Every time that we get this bill up before the House, it passes with
both majority and minority votes. There is support for doing this. I
ask my colleagues with $55 a barrel oil, do you not think it is time
that you did something? If you do not like this bill, where is your
alternative? Because as of yet all you do is the same old rhetoric.
The CHAIRMAN. Pursuant to the rule, the gentleman from California
(Mr. Thomas) and the gentleman from California (Mr. Stark) each will
control 10 minutes.
The Chair recognizes the gentleman from California (Mr. Thomas).
Mr. THOMAS. Madam Chairman, I yield myself such time as I may
consume.
Once again the House is debating a ``comprehensive energy package.''
I do have to say that as far as the Ways and Means Committee is
concerned, it is just slightly less comprehensive than it has been in
the past. But that is because we understand, having gone through a
conference with the Senate, the kind of package that will maximize our
chances in producing a fair and balanced tax section.
In discussing what we do in this particular bill, and I enjoy hearing
people discuss it as though it is the conference report that is in
front of us, it is in fact, and I will say it flatly, and in a
negotiating position, before us to sit down and work with the Senate.
It does have renewable provisions in the tax package, but by a small
amount. The majority focus is on the infrastructure of this country,
the electric power lines, gas collecting lines, and supporting a
structure which will be the backbone of our energy needs clearly for
the next quarter of a century before any of the innovative approaches
begin to carry a significant share of our energy needs.
I might also caution Members not to get too carried away looking at
this particular piece of legislation under the heading of an energy
bill and assume that we have done nothing since the conference report
that was agreed upon between the House and Senate was passed by the
House and not the Senate.
I would ask you to go back and refer to legislation passed just a
short time ago under the title of the Working Families Tax Relief Act.
In that bill we had incentives for wind, open biomass, electric cars,
and alternative-fuel vehicles.
In the American Jobs Creation Act, we provided incentives for
ethanol, biodiesel, geothermal, solar, open biomass, municipal solid
mass, and refined coal.
I know the other side is going to offer that constant lament, what
have you done for me lately? The answer is, let us get to conference,
put together a package, once again come to the floor of the House with
a conference agreement, we will pass that conference agreement, and the
Senate will pass that conference agreement. And I will conclude my
opening remarks by saying, I was very pleased that on the Ways to the
Means Committee, five Democrats understood, one, the strategy that we
are undertaking, and, two, supported the content of that strategy by
voting for the Ways and Means position.
I know a number of people have a definition of bipartisan, but based
upon the recent history of the Ways and Means Committee, five Democrats
supporting a measure offered in that committee is unprecedented
bipartisan support. And I was very pleased for it.
Madam Chairman, I retain the balance of my time.
Mr. STARK. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I rise in opposition to this bill. First of all, it
is improperly titled. It is not an energy policy act at all; it is the
delay bill. Now, why is it the delay bill?
Well, it is a bill that delays energy self-sufficiency by enacting
tax breaks and policies that benefit the oil and gas industry and
ignores renewable alternatives.
It delays protecting the Arctic National Wildlife Refuge. It delays
holding the makers of MTBE accountable for destroying drinking water.
It delays the end of $8 billion in special interest tax breaks. It
delays fishery restoration by giving dam owners free rein.

{time} 1630

It delays protecting our children who suffer more and more from
asthma as this bill delays enactment of stricter smog regulations. It
delays protecting our shorelines from oil and gas development. It
delays cleaner air and lower gas prices by mandating an agricultural
welfare program called ethanol. It delays the end of corporate welfare
for the likes of Enron and Home Depot. It delays the ability of States
to enact tougher energy efficiency laws.
I could keep going, Madam Chairman, but I do not want to delay the
proceedings any further.
The bill was written by and for the oil and gas industry with the
involvement of a small band of powerful Members of Congress. Its very
existence raises questions of ethical behavior. But as we know, our
Committee on Standards of Official Conduct is unable to meet to
consider such transgressions because of delay by my colleagues on the
Republican side of the aisle which delay Committee on Standards of
Official Conduct action against one of their own.
The purpose is not to enact a sane energy policy for our country at
all. In fact, as I have outlined above, it delays that very
possibility. It is an antienvironment, anticonsumer, antienergy self-
sufficiency and irresponsible corporate welfare bill.
Rather than considering this legislation, we should be considering
why ``delay'' continues to rule the House of Representatives.
Madam Chairman, I reserve the balance of my time.
Mr. THOMAS. Madam Chairman, I yield 2 minutes to the gentlewoman from
Pennsylvania (Ms. Hart), a member of the committee.
Ms. HART. Madam Chairman, I thank the chairman and my colleagues on
the committee for moving forward such an excellent package as part of
the energy bill.
I think many of us have spent the last several years hoping that we
would get an energy bill passed. There are a number of reasons why; in
my district, clearly one of the most important is simply the cost of
energy, whether it is home heat, whether it is the cost to
manufacturers which is costing us jobs. We need to move forward with
this energy bill.
My district is home to a number of manufacturers. I have met with
many of them since the beginning of the year when we were hoping that
we would get the energy bill moving. What they have asked for us is to
help them with their higher overhead, ultimately helping them with
their competitiveness, helping jobs to remain in our district.
Obviously, these companies' employees are much more susceptible to
layoffs without the energy bill.
I am also hearing from home owners, many of the elderly in my
district with older homes, who need some help, some incentives to
improve their homes, some tax assistance so they will have

[[Page H2205]]

more energy-efficient homes, to those who are building new homes, more
incentives.
The bill also addresses our aging electric transmission system. Many
of our transmission system lines were built 30 to 50 years ago, and it
is estimated by 2015 electricity consumption will increase by 28
percent. We need to repair and rebuild the 160,000 miles of electrical
transmission lines. This bill will reduce the time for depreciation
recovery and improve the opportunity for those companies to update
those lines, helping in efficiency, helping in opportunity to have
cheaper energy.
It is important also that we encourage new kinds of fuel. Especially
important are fuel cells and, in fact, providing new jobs and better
technology. Fuel cell technology in the United States is growing. The
use of it is growing and, in fact, jobs in that field are growing. I
think it is important that this bill provide a 15 percent tax credit
for business installation of fuel cell power plants and residential
fuel cell investments.
This is a great technology. It is one that has been utilized in other
parts of the world to a further extent than it has been utilized in the
United States. The help in this bill will encourage further use of fuel
cells.
This bill makes changes of the Tax Code that will speed the
development of newer and cleaner production of energy. It will help
curb energy costs. It will help move our economy forward.
I urge my colleagues to support this bill, and I especially commend
my colleagues on the Committee on Ways and Means for the tax
provisions.
Mr. STARK. Madam Chairman, I yield 3\1/2\ minutes to the gentleman
from Washington (Mr. McDermott) without further delay.
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Madam Chairman, Friday is Earth Day, but that will not
stop the Republicans from passing legislation that will make the Earth
dirtier, more polluted and warmer.
The Republican legislation favors corporate America over Main Street
in America. It will neither ask nor answer any of the energy issues
that threaten our environment, our economy and future generations.
Instead, the Republicans will answer the greatest challenge of our time
by telling Americans to dig deeper into their pockets for big oil.
At a time when America needs energy vision, Republicans have provided
us with their corporate donor lists. Despite soaring prices, despite
dangers to our economy and security for our dependence on oil, the
administration puts forward the deal of the century for big oil, gas
and coal. It rewards its friends and encourages America's addiction to
oil.
Nothing in this bill will lower gasoline prices a single penny.
Nothing in this bill will alter our dependence on oil. Nothing in this
bill will address the needs and concerns of the American people facing
economic peril at the pump every morning when they put $50 worth of gas
into their car. Instead, Americans from Maine to California will pay at
the pump and pay through the nose. Big oil's profits today defy
description.
The CEO of ExxonMobil who does not think global warming is real was
paid $38 million last year. The price of crude oil jumped $2 a barrel
yesterday. That added $1 billion of earnings to Mobil's earnings. Maybe
that explains why oil and gas companies have reduced their investment
in facilities by 20 percent even as their profits have increased 400
percent.
The oil and gas industry is sitting atop a mountain of cash looking
down on Americans who are held hostage by runaway gas prices that grow
the mountain of oil prices even higher. And we are giving them $7
billion more today. They do not need it. Across the country gasoline
prices are 20 percent higher than they were a year ago. Neither wages
nor economic opportunities come close to bridging that kind of deficit
for the American family.
The only choice for more Americans is to pay more, save less, use
consumer debt. Oh, yeah, remember the bankruptcy bill? And give up
something to make the frayed ends meet, while ExxonMobil's CEO pockets
$38 million.
With the price of crude oil sky high, you would think we would be
declaring a 12-alarm economic fire that endangers the lives of every
American family and the economic health of our economy.
Let me quote something that sums this up. ``We are grossly wasting
our energy resources and other precious raw materials as though their
supply was infinite.'' President Jimmy Carter spoke those words in
1976, almost 30 years ago. We laughed at him when he put on a sweater
and said maybe we should turn the thermostat down 1 degree.
Yet today Americans propose a policy that seeks to roll backward from
the ominous warnings of the mid-1970s. America needs vision and
leadership, but the Republicans will pass a bill that endorses and
rewards the traditional forms of energy. It proposes cutting billions
in promising renewable energy provisions. It proposes waiving liability
for companies that pollute our groundwater. It subsidizes oil, gas and
coal. It fails to address meaningful automobile conservation. And worst
of all, we are going to go up to the Alaska Wildlife Refuge and we are
going to drill.
We are going to drill our way to oblivion if we follow this pattern.
Mr. THOMAS. Madam Chairman, I yield myself 10 seconds.
I anxiously look forward to the debate on the Democrat substitute and
would willingly yield time to the gentleman from Washington (Mr.
McDermott) to make all the points he just made on the majority bill on
the minority bill since they include in their entirety the tax section
of the majority's bill.
Madam Chairman, I yield 1\1/2\ minutes to the gentleman from Arizona
(Mr. Hayworth).
Mr. HAYWORTH. Madam Chairman, earlier this year I reintroduced the
Residential Solar Energy Tax Credit Act, which would provide a 15
percent tax credit for the purchase of solar water heating systems and
photovoltaic systems to be installed in residential settings.
The maximum amount of this credit is $2,000 and the credit cannot
apply to solar energy systems used to heat swimming pools. I am pleased
this provision has been included in the tax title to H.R. 6, the Energy
Policy Act of 2005.
The solar energy industry in our Nation has been growing at a clip of
25 percent per year for the past several years, yet U.S. manufacturers
export 75 percent of their products because of the higher up-front
costs of solar energy systems as compared to other energy sources.
Purchasing a solar energy system is like buying a car and prepaying
for all the gas it would ever need. This makes consumers understandably
hesitant despite the environmental and other gains associated with
solar energy. National polls consistently find that over 85 percent of
Americans want greater support for solar power, and solar power can
play a role in our energy mix from coast to coast.
It is my belief that the residential solar tax credit will help
advance this important form of renewable energy. And in stark contrast
to the protestations of my friends on the left, we are willing to
embrace these technologies. It is proven by this solar energy tax
credit. I thank the chairman for its inclusion.
I urge support of the legislation.
Mr. STARK. Madam Chairman, I yield 2\1/2\ minutes to the gentleman
from Texas (Mr. Doggett).
Mr. DOGGETT. Madam Chairman, some folks will get a lot of mileage out
of this bill, but it will not be the hard-working Americans who have to
pay more and more at the gas pump as a direct result of the policies of
this Bush administration.
When the same collection of fossil fuel dinosaurs and tax loophole
lobbyists come here and order Congress to ``fill 'er up,'' with special
favors, they seldom go away on ``empty.''
National security demands a balanced energy policy that encourages
more new energy technology and renewable alternatives. But in this
bill, security is sacrificed at the altar of whichever lobbyist had the
biggest limousine.
Our families' health depends on clean air and water, but this
collection of tax breaks, loopholes, handouts and waivers ensures only
continued healthy profits for some of the worst polluters

[[Page H2206]]

in the world. And this bill is not just about more smoke in the air, it
is about more smoke and mirrors.
Take, for example, the synthetic fuel provision that I tried
unsuccessfully to strike in the Committee on Ways and Means; it is
really about tax dodging through synthetic accounting. Unscrupulous
companies get what some estimate to be up to $4 billion a year by
spraying starch on coal or pine tar on coal. This does not add to the
energy capability of the coal. It does not cause the coal to burn in a
less polluting manner. Its sole purpose is to generate significant tax
dodging. That is why Enron was about to embark on this gimmick that so
many companies have abused, and which this Committee on Ways and Means
refuses to end.
This energy bill is not just about over-reliance on fossil fuels. It
is about fossilized ideals. It is about a lost opportunity for America
to be the world's leader in energy technology.
With our security at stake, when so much of the world's oil is
located in areas as inflammable above ground as the fuel they hold
underground, with our families' health dependent on not letting the
quality of our air and our water deteriorate even further than it has
under this Administration, this energy bill is the latest example of
spending today, while the future will be billed in dollars, safety and
health.
That bill will be due and paid by our children and our grandchildren,
like my new little Ella.
Mr. THOMAS. Madam Chairman, I yield myself 15 seconds.
I also look forward to seeking to yield to my friend from Texas (Mr.
Doggett) during the debate on the minority substitute bill, because the
provision he just viciously attacked on the floor as being totally
unacceptable is in the Democrats' bill as well. I look forward to
having those words spoken against their own substitute because it
contains exactly the same language.
Madam Chairman, I yield 1\1/2\ minutes to the gentleman from Illinois
(Mr. Weller).
(Mr. WELLER asked and was given permission to revise and extend his
remarks.)
Mr. WELLER. Madam Chairman, I rise in strong support of H.R. 6,
balanced legislation designed to reduce our dependence on imported
energy, a balanced approach that has earned bipartisan support in the
House Committee on Ways and Means, emphasizes conservation, alternative
sources of energy, as well as finding more domestic sources of energy.

{time} 1645

I take my brief amount of time to focus on what I consider to be the
most consumer-oriented provision of this legislation, legislation that
rewards conservation, conservation at home.
Twenty percent of all the energy we consume in America, one-fifth of
our energy consumed, is consumed at home. In fact, the average American
spends about $1,500 a year in heating and cooling their home. Just
think if they could save 10, 20, 30 percent. It means not only energy
conservation to save energy but it would help their pocketbooks as
well.
This legislation today contains provisions out of H.R. 1212,
legislation that provides up to a $2,000 tax credit that homeowners can
use in their existing home to make it more energy efficient, put in
better windows, better doors, better insulation, do a better job of
sealing the home. If they meet the Federal standard by reducing their
energy consumption by 30 percent, they can reduce their taxes with up
to a $2,000 tax credit, 20 percent of the first $10,000 they invest.
Bottom line is we need to encourage energy conservation. What better
place to start than right at home. I urge bipartisan support for this
legislation.
Mr. STARK. Madam Chairman, I yield 1 minute to the gentleman from
Georgia (Mr. Lewis).
Mr. LEWIS of Georgia. Madam Chairman, I thank the gentleman from
California (Mr. Stark) for yielding me time.
Madam Chairman, gas prices are going up every single day, and this
bill does nothing to bring down the costs at the pump. In fact, it
might just make the problem worse.
The energy czars must be the majority leader and company, and they
wrote this bill behind closed doors. This bill is immoral. It is a
shame and it is a disgrace. This bill was conceived in darkness and
born in a den of iniquity.
This bill does not do one thing to bring down the price of gasoline
at the pump. We can do better. We can do much better. We should vote
against this bill.
Mr. THOMAS. Madam Chairman, how much time is left?
The CHAIRMAN. The gentleman from California (Mr. Thomas) has 1\3/4\
minutes remaining.
Mr. THOMAS. And the other side?
The CHAIRMAN. The gentleman from California (Mr. Stark) has 1 minute
remaining.
Mr. THOMAS. And who has the right to close?
The CHAIRMAN. The gentleman from California (Mr. Thomas) has the
right to close.
Mr. THOMAS. We have one speaker remaining.
Mr. STARK. Madam Chairman, I am happy to yield 1 minute to the
gentlewoman from California (Ms. Pelosi), the distinguished minority
leader.
Ms. PELOSI. Madam Chairman, I thank the distinguished gentleman from
California (Mr. Stark) who I am very proud of for yielding me time and
for his leadership.
I want to commend four of our ranking members, the gentleman from
Michigan (Mr. Dingell) of the Committee on Energy and Commerce, the
gentleman from West Virginia (Mr. Rahall) of the Committee on
Resources, the gentleman from New York (Mr. Rangel) of the Committee on
Ways and Means, and the gentleman from Tennessee (Mr. Gordon) of the
Committee on Science for their exceptional leadership in presenting an
alternative view to the Republican bill that is on the floor today.
Unfortunately, we will not have a Democratic substitute, contrary to
what the gentleman said.
Madam Chairman, the American people deserve an energy policy that is
worthy of the 21st century, not one mired in the policies of the past,
but a bill that looks forward, not backward. It is imperative that our
country have an energy policy for the future, and it is a matter of
national security that we reduce our dependence on foreign oil so that
we will be able to take care of our own security and not have to send
our troops in harm's way for oil.
It is critical to our environment that we invest in emerging
technologies and renewable energy and invest in energy efficiency and
conservation. It is vital for our economy that our country's economic
growth is not constrained by the price of oil and that our consumers do
not have to pay such a serious price at the pump for gasoline.
The opportunity is here, really, for an energy bill that would put
our country on the right path. But this bill that the Republicans have
put forth today misses that opportunity. Instead of a positive plan for
moving our country forward, the Republican bill is warmed-over stew of
old provisions and outdated policies.
The Republican bill is anti-consumer, anti-taxpayer, anti-
environment, and with its MTBE provisions, it is harmful to children
and other living things.
The Republican bill was conceived in secrecy. It was written with the
influence of the energy lobbyists, and it shows. It should be rejected
by this Congress.
First, this bill is anti-consumer. Gas prices are soaring, and this
bill makes matters worse. The price of gasoline is approaching $3 in
some parts of our State; and nationwide, gas prices are up 42 cents
above a year ago. When it costs nearly $50 for an American worker to
fill his tank, it is time for relief. Yet it is the fifth year of the
Bush administration, and there has been no meaningful action to lower
gas prices at the pump.
Madam Chairman, according to the Bush administration's own Department
of Energy, this Republican bill will actually increase gas prices by
three cents a gallon and will have almost no effect on production,
consumption, or prices.
The consumer is not served well when the public interest is not
served, and the public interest is not served by this bill. Indeed, it
is a gift to the special interest.
This bill is wrong because by its electricity provisions it fails to
protect the public from Enron-style fraud and abuse. By arbitrary caps
on private spending to improve the reliability of

[[Page H2207]]

our Nation's electricity grid, the bill goes wrong. It is also wrong by
repealing the Public Utility Holding Company Act, which protects
consumers and investors from corporate abuses.
Second, the bill is anti-taxpayer, and I know that the gentleman from
California (Mr. Stark) and some of the members of the Committee on Ways
and Means addressed some of these concerns. The bill is loaded with tax
breaks and royalty relief for oil and gas companies. Of $8.1 billion in
tax incentives in the bill, $7.5 billion, a staggering 93 percent, is
for traditional energy sources such as oil, natural gas, nuclear power,
and electricity transmission.
Even President Bush has said that when the price of oil is over $50 a
barrel that the oil industry does not need relief; and yet the
President wants this bill to come to his desk from Congress as soon as
possible.
Democrats have better ideas. I particularly want to commend the
gentleman from New York (Mr. Bishop) and the gentleman from
Massachusetts (Mr. Markey) for their amendment to lower gas prices,
promote energy efficiency, advance emerging technologies for energy
efficiency and conservation and to improve consumer protection.
This bill is anti-environment, as the gentleman from West Virginia
(Mr. Rahall) pointed out. It will open the Arctic National Wildlife
Refuge to oil and gas drilling, all for the sake of a 6-month supply of
oil that will not even be available for 10 years. If this unspoiled
place is not special enough to save for our grandchildren, what is?
Once they despoil the ANWR, nothing else is sacred.
Indeed, this bill makes it easier for oil drilling in protected areas
off our magnificent coastlines.
The bill contains other anti-environmental provisions, including
weakening the Clean Air Act, weakening the Clean Water Act, weakening
the Safe Drinking Water Act and the National Environmental Policy Act.
Finally, this bill is harmful to children and all living things. The
provision on the gasoline additive MTBE, a few drops of which can
poison entire drinking water systems, the provisions in this bill for
MTBE are a breathtaking example of pandering to special interests.
Instead of eliminating MTBE now, remember I said a few drops can poison
entire drinking water systems, instead of eliminating it now, the bill
gives the MTBE industry 9 years for a phase-out, and it would give MTBE
producers liability protection in contamination lawsuits.
Okay. You are poisoning the water supply, you do not have to stop for
9 years, you have no liability for contamination, and on top of that,
we are going to give you $2 billion in subsidies, $2 billion in
subsidies to help MTBE manufacturers.
The dirty little secret is that the MTBE industry knew all along that
it would leak out of gasoline storage tanks and contaminate
groundwater, but they lobbied for it to be added to our gasoline
anyway. Now they do not want to pay for the cleanup. They want
taxpayers to pick up the tab.
The provision on MTBE included in this bill, at the majority leader's
insistence, killed the bill in the last Congress, and the gentleman
from Texas (Mr. DeLay), the majority leader, is insisting on including
it again this year. In fact, this is the majority leader's bill that we
are debating today.
Madam Chairman, it is time for us to look forward. It is time for an
energy policy worthy of the 21st century.
This Republican energy bill is clearly designed to help energy
companies make more money, not to help Americans consumers save money.
I urge my colleagues to stand up for a forward-looking energy bill to
ensure our national security, to grow our economy, to protect our
environment, and to keep our water and air safe for our children.
I urge my colleagues to vote ``yes'' on the Democratic amendments for
an energy policy for the future, and I urge my colleagues to ``just say
no'' to the gentleman from Texas' (Mr. DeLay) disgraceful MTBE giveaway
and his outdated boondoggle of an energy bill.
Mr. THOMAS. Madam Chairman, I would inquire of the Chair, the 1
minute that was on the minority side, does that expire?
The CHAIRMAN. The Chair has followed the tradition of the House to
allow additional time to the minority leader, and her 1 minute expired.
Mr. THOMAS. Madam Chairman, I appreciate that, and I yield myself 15
seconds.
If we could get the mileage out of the gallon of gasoline that they
get out of 1 minute, we would not need an energy policy in this
country.
First of all, I want to thank the five Democrats on the Committee on
Ways and Means who had the courage to vote for this excellent tax
provision. Understanding the pressure they are under, based upon the
comments that were just made, truly it was a heroic vote.
Madam Chairman, it is now my pleasure to yield the remainder of the
time to the gentleman from Pennsylvania (Mr. English).
Mr. ENGLISH of Pennsylvania. Madam Chairman, at a time of record-high
energy prices, the growth of the economy is at risk, and it is critical
that Congress take the necessary steps to put in place a comprehensive
energy policy.
The bill before us, frankly, is more limited in scope than I would
prefer. It is not as ambitious as I would like in creating market
incentives to overhaul the energy side of our economy; but,
nevertheless, support of this bill is a critical first step for
Congress to move forward to meet the critical goal of an effective
national energy policy.
Its passage will set us on the right path by encouraging the creation
of new technologies, by promoting renewable energy sources, by
modernizing and expanding our energy infrastructure, including our
power energy infrastructure, and encouraging conservation.
I believe we need to move forward on this bill. It is long overdue
and has been a priority of Congress since this President came into
office. The time has come for us to pass an energy bill.
Unfortunately, we have seen the vacancy of the debate today, the fact
that we are not seeing an alternative being offered by the other side.
We have heard about new ideas from them, but all we have been offered
is warmed-over rhetoric, and there is no technology available to us
that could ever make good use of that.
Please pass this legislation. It is long overdue. The time has come
for us to put in place a national energy policy.
Mr. BLUNT. Madam Chairman, when George W. Bush was running for
president six years ago, he said that our country had been without a
comprehensive energy policy for a decade. We are now going on sixteen
years with no energy plan for America, and it is not for lack of
trying.
The House of Representatives has passed Energy legislation four
times, only to have the bills die in the Senate because of partisan
politicking. Keeping the lights on should not be a partisan issue.
Filling up a gas tank should not be a partisan issue.
Madam Chairman, gas prices are at an all-time high. I want to thank
Chairman Joe Barton for working with me to include a provision in this
bill to curb the production of boutique fuel blends and address this
issue head-on.
The current gasoline supply includes specially formulated, boutique
fuels which are required by law in certain communities.
When supplies are limited, gas prices rise quickly--sometimes
overnight.
For example: Missourians can fill their gas tanks up in Springfield
and drive 3 hours to St. Louis. When they get there, they'll be filling
their tanks up with a completely different type of gasoline. But if St.
Louis ever runs short on their boutique fuel, gas stations there can't
sell what consumers could buy back in Springfield.
The energy bill we will vote on tomorrow caps the number of these
special fuel blends and allows communities faced with a shortage due to
unforeseen circumstances, such as a refinery fire, a waiver to use
conventional gasoline. This plan relies on simple economics: if we
create a larger market for a greater amount of gasoline, we'll help
drive prices down.
By including this proposal in the energy bill, the House is moving
the country one step closer to lowering the sky-high price of gas for
consumers.
Madam Chairman, it's time to see some common sense at the gas pump. I
urge my colleagues to support this rule, support the underlying bill,
and vote for lower gas prices and increased energy independence for
America.
Mr. LEVIN. Madam Chairman, if ever there was a time when this country
needed a smart, forward-looking energy strategy, this is it. Energy
prices throughout the country are close to record highs. Consumers in
my State are struggling with soaring gasoline costs. The price of
gasoline in Michigan today is 36 cents a gallon higher than it was just
1 year ago.

[[Page H2208]]

Steep increases in the price of natural gas have resulted in
skyrocketing increases in consumers' home heating bills over the past
few winters.
So what is the response of the House of Representatives? The
Leadership of the House has brought a bill to the Floor that will do
little or nothing to reign in energy prices. This is virtually the same
bill that the Senate rejected 2 years ago. According to the Bush
administration's own Energy Information Administration, the policies
contained in this legislation will have a negligible effect on energy
production, consumption, imports and prices.
Instead of bringing us a comprehensive energy bill that brings down
gas prices and encourages greater U.S. energy independence, the bill
before the House is little more than a grab-bag of special interest
giveaways. For example, the tax title of this legislation contains just
over $8 billion worth of tax incentives. Only about 6 percent of these
go to energy efficiency, renewable energy or conservation. Nearly all
of the $8 billion goes to the oil, gas and nuclear industries, as well
as electric utilities.
With oil and gas prices--to say nothing of energy industry profits--
near record levels, why are we extending these additional subsidies?
Just the other day, President Bush said that ``with $55 oil we don't
need incentives to oil and gas companies to explore. There are plenty
of incentives.'' Yet this bill is chock-full of these unneeded
incentives. There's $3.3 billion in oil and gas production tax
incentives, plus a number of ``royalty holiday'' provisions for energy
extraction on public lands. It's easy to see how this legislation is
good for the bottom lines of oil and gas companies, but it's consumers
that need our help today.
I know that the proponents of this legislation have been saying that
opening up the Arctic Wildlife Refuge to oil drilling will help bring
down gas prices. This simply is not the case. We have no idea how much
oil lies beneath the Refuge. The New York Times reported in February
that the ``major oil companies are largely uninterested in drilling in
the refuge, skeptical about the potential there.
``Even the plan's most optimistic backers agree that any oil from the
refuge would meet only a tiny fraction of America's needs.''
The crusade to drill in the Refuge is a distraction. Even if there is
extractable oil there, it would take nearly a decade to bring the
energy to market.
This country badly needs a balanced energy policy. We can't drill our
way to energy security. We need a balance between energy production, on
the one hand, and greater use of renewable sources of energy and
conservation on the other. The bill before the House today doesn't even
pretend to seek balance, and I urge my colleagues to reject it.
Mr. FILNER. Madam Chairman, this legislation takes our nation in the
wrong direction and fails to meet our energy needs. This is a missed
opportunity. We could have boosted our nation's commitment to renewable
and efficient energy, thereby curbing our reliance on foreign oil,
creating 21st century jobs, protecting the environment and providing
affordable and reliable energy for America's families. We could have
taken on the oil companies that are gouging all our constituents at the
gas pumps. We could have fought for more hybrid vehicles, higher fuel
economy standards and other 21st century technologies.
But, instead, the Republican energy bill doles out favors to the oil,
gas and coal companies, keeping our nation stuck in the 20th century.
This bill allows the oil companies to rip up the Arctic National
Wildlife Refuge. This bill protects companies that have polluted our
water with MTBE. We now know that GOP means gas, oil and petroleum!
The Rules Committee blocked two amendments I would have offered to
this bill. The first would have simply extended the tax credit for
geothermal energy, giving energy companies the time they need to build
geothermal facilities and actually use the incentive this Congress
already approved. My amendment would have promoted the development of
geothermal energy in Imperial Valley, California, and around the
nation, creating good jobs and a source of clean, domestically-
produced, environmentally friendly, reliable energy. Yet the
Republicans on the Rules Committee shot down this common sense
amendment, preventing us from even taking a vote on it.
They also blocked my amendment to address another very serious issue
we are facing in Imperial Valley--air pollution from power plants
across the border in Mexico. In the 21st century, U.S. companies should
not be able to skirt their environmental obligations by moving a few
miles across the border! My amendment would have simply required power
plants in the border region to meet our environmental standards if they
wish to transmit electricity into the United States. In exchange for
transmission permits from the Department of Energy, power plants in
Mexicali, Mexico would have been forced to pay for projects in Imperial
Valley to off-set the air pollution they are sending across the border
into our communities. With the highest child asthma rate in California,
Imperial County certainly needs the help, but the Republicans on the
Rules Committee once again turned their backs on us.
We will continue fighting for a better approach to energy in this
Nation. We will fight for an investigation of the oil companies to
determine if any wrongdoing has contributed to the sky-high gas prices.
We will fight for a commitment to geothermal energy and other clean and
renewable energy sources. And we will continue fighting for an energy
policy that reduces pollution in the border region and around the
country.
Mr. GREEN of Wisconsin. Madam Chairman, I want to express my deep
disappointment that the Rules Committee did not accept a bipartisan
amendment authored by Mr. Stupak, myself, and other Great Lakes area
members last night. This important amendment would have permanently
banned oil and gas drilling in and under the Great Lakes. The current
ban is set to expire in 2007.
I am proud to say that I have long been a proponent of banning oil
and gas drilling on the Great Lakes and have voted to do so at every
possible opportunity. The Great Lakes are home to the world's largest
supply of fresh water. In fact, the Great Lakes make up 95 percent of
the United States' fresh surface water.
For those of us in the Great Lakes states, the Great Lakes represent
a critical component of our environment, our economy and our identity.
The risks drilling poses to the lakes are unacceptable.
Congress has a history in support of banning drilling on the Great
Lakes. A ban was first approved in 2002 and has been extended twice
since. However, the time has come to end the uncertainty surrounding
drilling on the Great Lakes. A permanent ban should be put into place.
While I am disappointed the Rules Committee has prevented the House
from including a ban on drilling on the Great Lakes, I plan to work
night and day with my colleagues to get a permanent ban approved--
either in conference or as a stand-alone piece of legislation. This is
a fight I will not give up.
Mr. DeFAZIO. Madam Chairman, over the past couple of years I have
corresponded with the Department of Energy on an issue of particular
concern to me. The Department of Energy continues to spend millions of
dollars, over $60 million so far, to defend private contractors who
caused injury to citizens downwind of the Hanford nuclear reservation
despite provisions of the Price Anderson Act to the contrary. The
American taxpayers should no longer have to bear the burden of
defending private contractors who have harmed citizens. I would like to
submit my most recent letter to the Department of Energy and asked that
it be made part of the Record.

March 4, 2005.
Hon. Samuel Bodman,
U.S. Department of Energy,
Washington DC.
Dear Mr. Secretary: Thank you for your September 2003
response to my questions about the Hanford Nuclear
Reservation case. However, I have ongoing concerns about the
Department of Energy's (DOE) willingness to represent DuPont
and General Electric at a cost of millions of taxpayer
dollars. I believe that the Department's financial support is
not only ill conceived, but that it violates the intent of
Congress in passing the Price Anderson Act (PAA).
Regarding question numbered ``2'' of the 2003 letter, we
have been informed that while the district judge accepted the
defendants' standard of proof for injuries, that decision was
soundly reversed by the Ninth Circuit on the merits.
I am concerned that DOE continues to fund, at considerable
taxpayer expense, an ongoing series of technical motions by
the contractors.
It was the intent of the Congress of the United States when
it enacted the Price Anderson Act, to encourage the
development of nuclear energy and at the same time to provide
``full compensation to the victims of nuclear incidents,''
including the people who were exposed to radiation from
nuclear facilities such as Hanford. The actions of the
Department of Energy in spending large sums of taxpayer
dollars to forestall compensation to citizens who were
exposed to radiation releases from Hanford, represents action
by a federal agency that is directly contrary to the intent
of Congress.
I recently learned that federal Judge Nielsen, on March 30,
2004, rejected the motion of DuPont and General Electric that
they be dismissed from the case because they contracted with
the government to run Hanford. In underwriting such a motion
with taxpayer funds the Department violated the intent of
Congress in passing the Price Anderson Act. The fact that the
PAA reimburses the companies when people are injured from a
nuclear incident precluded the necessity for a ``contractor
immunity'' defense as Judge Neilsen held. I have now learned
that you intend to financially support an appeal of that
Order. Any further attempts to evade the intent of the PAA by
the DOE we believe to be a serious concern for the Congress.

[[Page H2209]]

Your letter notes that the DOE does not ``disagree with the
proposition that low doses of radiation can cause some forms
of cancer.'' In addition, there are government studies that
show exposure to radiation contributed to the onset of the
claimants' illnesses. Yet the DOE continues to defend the
contractors. It would appear that contrary to the fact that
workers can be compensated for thyroid cancer, non workers
who were exposed to more Iodine 131 than many workers would
be denied similar treatment. I do not understand this logic.
What policy consideration drives this inconsistent behavior?
I also learned that the motions of DuPont and General
Electric to have all cases dismissed as being filed too late
based upon the Statute of Limitations has been dismissed.
More than $60 million of taxpayer funds have been spent by
DuPont and General Electric for 15 years of loosing motions
and adverse rulings. Again, I do not understand why the
Department of Energy continues to spend millions of dollars
paying lawyers to attempt to defeat claims that the Congress
of the United States determined should be compensated.
I further note that the Hanford plaintiffs were just
successful in filing a motion declaring that the operations
at Hanford were an ``ultra hazardous activity.'' This holding
is consistent with Congress' findings regarding the
operations of nuclear facilities. We note again that the
Department of Energy spent thousands upon thousands of
dollars defending this untenable defense (Energy Employees
Occupational Illness Compensation Act of 2000, 42 U.S.C.
Sec. 7384 et seq).
I understand that a trial date has been set, and that
General Electric and DuPont are taking the position that
Iodine 131, which was released in enormous quantities from
Hanford, does not cause thyroid cancer. Is that the position
of the Department of Energy? If not, please explain if the
Department is taking the position that the Price Anderson Act
does not apply to a person exposed to radiation below a
certain dose, and if so what that dose is.
I understand that several million dollars more could be
spent in the next year or two continuing to defend this
action. That would result in taxpayers' money approaching the
$100,000,000 being paid to lawyers to prevent compensation to
victims of radiation exposure from Hanford.
All of the defenses you have previously supported have been
rejected by a federal court. Has the Department of Energy
authorized any amount of money for settlement of this case?
It would appear that more money may well be spent to thwart
the intent of the Price Anderson Act than would be spent in
victims' compensation.
Please provide me with a detailed justification for any
continued payment by the Department of Energy for the defense
of this litigation, including specific justifications for any
motions currently or intending to be filed or appealed
seeking to dismiss most or all of the cases and why such
action does not violate Congress' intent in enacting the PAA.
Sincerely,
Peter DeFazio,
Member of Congress.

Mr. FARR. Madam Chairman, I rise in strong opposition to this so-
called comprehensive energy bill before us today. This energy package
have a new wrapping and bow but it is the same white elephant gift for
the American people that sadly passed in this House last Congress.
Our Nation's energy policy must strike a sound balance by pursuing
improvements in fuel technology and energy efficiency; maintaining a
clean environment; and preserving our wilderness areas and public
lands.
Instead, by refusing to commit to improving and investing in
sustainable fuel technology, we are putting our technology and
manufacturing industries at a competitive disadvantage when the rest of
the planet is searching for alternatives to fossil fuels.
We are missing an opportunity here; as a future energy policy this
legislation is bumbling along because of following the policies in this
bill would be like driving into the future by looking through the
rearview mirror with its heavily weighted dependence on fossil fuels.
H.R. 6 falls depressingly short of addressing our energy needs in
both the short and the long term.
Based on the pro-industry recommendations of the Cheney Energy Task
Force report, this bill is anti-taxpayer, anti-environment, anti-
consumer and is loaded down with special-interest giveaways.
Madam Chairman, more than ninety percent of the subsidies in H.R. 6
would go to the oil, gas, coal and nuclear industries, leading to more
pollution, more oil drilling and more radioactive-waste-producing
nuclear power.
By contrast, only about six percent of the tax breaks would go to
energy efficiency and renewable energy incentives that could actually
save consumers money and reduce our dependence on dirty energy sources.
Madam Chairman, gas prices, gas prices, gas prices and more gas
prices. It's the most asked question I hear in my district and rightly
so with prices in my home town of more than $3 a gallon and a national
average price at a record level of $2.24 a gallon--more than 50 percent
higher than average gas prices in 2002.
According to the Bush Administration's own Energy Department
estimates, this Republican bill will actually increase gas prices by 3
cents and will have virtually no effect on production, consumption, or
barrel prices.
American consumers are being squeezed at the pump while the big oil
companies are reaping record profits and the Republican Leadership is
passing an energy bill that will further raise gas prices.
How in good faith can we go back to out constituencies with a
national energy policy that does not address the future, does not
address short term fixes or long term solutions.
Madam Chairman, several provisions in H.R. 6 will weaken California's
rights as a State to govern itself. These include changes in: LNG
terminal siting, weakening the Coastal Zone Management Act, and
expanding alternative energy projects situated on the Outer Continental
Shelf (OCS).
The bill will hand over exclusive jurisdiction for the siting of
liquefied natural gas (LNG) facilities to the Federal Energy Regulatory
Commission (FERC), preventing the states from having a role in
approving the location of LNG terminals and the conditions under which
these terminals must operate. This bill even goes as far as making the
States seek FERC permission before conducting safety inspections! Plus,
they will be barred from taking any independent enforcement action
against LNG terminal operators for safety violations.

H.R. 6 weakens California's rights under the CZMA to object to a
FERC-approved coastal pipeline or energy facility project when the
project is inconsistent with the State's federally-approved coastal
management program. Currently when there is a disagreement about a
project, the Secretary of Commerce, through an administrative appeals
process, determines whether and under what conditions the project can
go forward. States can present new evidence supporting their arguments
to the Secretary.
Under H.R. 6, states will not be allowed to present new evidence to
the Secretary, and the Secretary will not be allowed to seek out
evidence on his or her own. The Secretary will only be allowed to rely
on the record compiled by FERC. Furthermore, the bill imposes an
expedited timeline for appeals, which may not allow a full review of
the facts.
We have to protect our shores and near waters. H.R. 6 will give the
Department of Interior permitting authority for ``alternative'' energy
projects, such as wind projects, situated on the Outer Continental
Shelf (OCS). It also grants the Department of Interior authority to
permit other types of energy facilities, including facilities to
``support the exploration, development, production, transportation, or
storage of oil, natural gas, or other minerals''.
Another very dear issue in California is the fuel additive MTBE
(methyl tertiary butyl ether), I oppose shielding MTBE producers from
product liability lawsuits, thereby forcing taxpayers to pick up the
tab to clean up contaminated groundwater in places such as the Salinas
Valley, the salad bowl of the world, which has already tested positive
for MTBE.
The bill even includes a $2 billion taxpayer-financed subsidy to MTBE
producers to convert facilities to produce other chemicals.
The obvious gouging of California consumers is significant evidence
that the electricity energy market lacks much needed controls.
Does H.R. 6 correct this? NO--Instead of protecting Americans from
the market manipulation that has become all too prevalent, H.R. 6 is
weighed down by special interest exemptions that will do more harm than
good.
The bill does not give federal regulators the tools they need to
prevent and punish bad actors like Enron who manipulate power markets.
Instead H.R. 6 offers cosmetic reforms.
Moreover, the bill does nothing to provide refunds to my constituents
and West Coast consumers who paid unjust and unreasonable electricity
prices during 2000-2001.
Madam Chairman, it's plain and simple--H.R. 6: fails to lower
gasoline prices; fails to improve our nation's energy efficiency or
promote sustainable alternatives; fails to adequately address future
infrastructure needs; fails to learn from the lessons of the California
electricity crisis; and fails to prevent future ``Enrons'' from
manipulating energy markets at the expense of consumers.
I urge my colleagues to oppose this legislation so we can develop a
comprehensive energy policy that looks to the future and doesn't rely
on repackaged outdated technologies from the past.
Mr. KING of Iowa. I rise today in strong support of H.R. 6, the
Energy Policy Act. We need a balanced energy policy in this country,
and this bill takes great strides towards achieving that balance.
As a founding co-chair of the House Ag Energy Users Caucus, I am
concerned that the Corn Belt is being held hostage to high gas, diesel
and natural gas prices. Farmers utilize diesel and gasoline to operate
their equipment and transport their product. Farmers have had

[[Page H2210]]

to tighten their belts as prices have increased. Therefore, I am in
strong support of this energy bill that allows for exploration in the
Arctic National Wildlife Reserve (ANWR), which will allow for more
domestic supply of oil.
Nothing has caused more concern for agriculture than the price of
natural gas. Natural gas is the primary feedstock for anhydrous ammonia
and other fertilizers and accounts for 90 percent of the cost of making
nitrogen fertilizer. The surge in natural gas prices over the last 4
years has been a key reason why nitrogen fertilizer costs have jumped
by nearly 50 percent at the farm level. This rise in prices has
contributed to the growing reliance on imported fertilizer. For that
reason, I am in strong support of the natural gas provisions in this
bill and would urge Members to oppose amendments that would weaken any
natural gas provisions in the bill.
Finally Madam Chairman, most of my colleagues know that Iowa is not
only a consumer of energy, but a producer of energy. The Fifth District
of Iowa is an energy export center, exporting ethanol and biodiesel all
across this nation. This bill includes a 5 billion gallon Renewable
Fuels Standard that will be good for our energy independence while
securing rural economies. However, I want to see the bill come back
from conference with an 8 billion gallon standard.
I urge my colleagues to vote in favor of the Energy Policy Act.
Ms. SCHWARTZ of Pennsylvania. Madam Chairman, I rise today in strong
opposition to the Energy Policy Act of 2005.
Madam Chairman, this bill represents a lost opportunity. Now, more
than ever, we need an energy bill that will wean the Nation off of
foreign oil. We need to do this so hard-working Americans are no longer
subjected to the ever-rising costs of gasoline and we have to do this
for the safety and security of our Nation.
In my home district, the average price for a gallon of regular
unleaded is $2.22 compared to $1.76 just one year ago. Yet, the bill
before us will do nothing to relieve Americans from the skyrocketing
costs of gas. My colleagues, even the Bush Administration recognizes
this; with the Energy Information Administration saying that the bill
would actually increase gas prices rather than reduce them.
What's worse is that while the bill does nothing to relieve Americans
of their burden at the gas pump, it also takes an additional $7.5
billion out of their pockets as a tax giveaway to oil, gas, coal and
nuclear industries--industries that are earning record profits--without
setting a course towards energy independence. The President himself
said, just last week, ``With $55 oil we don't need incentives for oil
and gas companies to explore. There are plenty of incentives.''
This Congress needs to establish an energy policy that sets America
free from its dependence on imported oil. Yet, only seven percent of
the tax incentives in this bill will go towards renewable energy and
energy efficiency--leaving us to be reliant on the same old energy
sources.
H.R. 6 is, unfortunately, par for the course for the Republican
Leadership, which has turned a blind eye to scientific discovery--be it
medical, physical, or otherwise. America cannot continue to be a world
leader with regard to scientific discovery unless we invest and provide
incentives, including for energy sources of the future.
In addition to its misdirected energy priorities, the bill contains
several dirty little footnotes. It will pollute our air and water and
exploit our federal lands. It exempts MTBE manufacturers from cleaning
up the groundwater they polluted--violating our Nation's longstanding
polluter pay policy. It will let oil and gas companies off the hook
from the Safe Water Drinking Act--allowing them to skirt water
standards.
Mr. Speaker, we cannot continue to go down the same worn out path. We
must set the Nation on a course to energy independence which means
promoting cleaner, less expensive energy that we control. That requires
a balanced energy policy that aids domestic production but, more
importantly, sends us in a new direction by investing in renewable and
energy efficient technologies. Unfortunately, H.R. 6 does not meet this
goal, leaving our Senate colleagues to find a better way. Hopefully,
they will be able to craft a bill that achieves a better balance than
this legislation.
I urge a ``no'' vote on H.R. 6.

{time} 1700

The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the bill shall be considered read for amendment
under the 5-minute rule.
The text of H.R. 6 is as follows:

H.R. 6

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 2005''.
(b) Table of Contents.--The table of contents for the bill
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--ENERGY EFFICIENCY

Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy Savings Performance Contracts.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 111. Daylight savings.

Subtitle B--Energy Assistance and State Programs

Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.

Subtitle C--Energy Efficient Products

Sec. 131. Energy Star Program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.
Sec. 135. Preemption.
Sec. 136. State consumer product energy efficiency standards.

Subtitle D--Public Housing

Sec. 141. Capacity building for energy-efficient, affordable housing.
Sec. 142. Increase of cdbg public services cap for energy conservation
and efficiency activities.
Sec. 143. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 144. Public housing capital fund.
Sec. 145. Grants for energy-conserving improvements for assisted
housing.
Sec. 147. Energy-efficient appliances.
Sec. 148. Energy efficiency standards.
Sec. 149. Energy strategy for HUD.

TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for
electric energy, useful heat, transportation fuels,
petroleum-based product substitutes, and other commercial
purposes.
Sec. 207. Biobased products.
Sec. 208. Renewable energy security.

Subtitle C--Hydroelectric

Part I--Alternative conditions

Sec. 231. Alternative conditions and fishways.

Part II--Additional hydropower

Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal
facilities.
Sec. 245. Shift of project loads to off-peak periods.

TITLE III--OIL AND GAS--COMMERCE

Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum
Reserve and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.
Sec. 304. Suspension of Strategic Petroleum Reserve deliveries.

Subtitle B--Production Incentives

Sec. 320. Liquefaction or gasification natural gas terminals.
Sec. 327. Hydraulic fracturing.
Sec. 328. Oil and gas exploration and production defined.
Sec. 329. Outer Continental Shelf provisions.
Sec. 330. Appeals relating to pipeline construction or offshore mineral
development projects.
Sec. 333. Natural gas market transparency.

Subtitle C--Access to Federal Land

Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 346. Compliance with executive order 13211; actions concerning
regulations that significantly affect energy supply,
distribution, or use.
Sec. 355. Encouraging Great Lakes oil and gas drilling ban.
Sec. 358. Federal coalbed methane regulation.

Subtitle D--Refining Revitalization

Sec. 371. Short title.

[[Page H2211]]

Sec. 372. Findings.
Sec. 373. Purpose.
Sec. 374. Designation of Refinery Revitalization Zones.
Sec. 375. Memorandum of understanding.
Sec. 376. State environmental permitting assistance.
Sec. 377. Coordination and expeditious review of permitting process.
Sec. 378. Compliance with all environmental regulations required.
Sec. 379. Definitions.

TITLE IV--COAL

Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean Coal Centers of Excellence.

Subtitle B--Clean Power Projects

Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 414. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.

Subtitle D--Coal and Related Programs

Sec. 441. Clean air coal program.

TITLE V--INDIAN ENERGY

Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project.

TITLE VI--NUCLEAR MATTERS

Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of
liability for certain foreign incidents.
Sec. 611. Civil penalties.
Sec. 612. Financial accountability.

Subtitle B--General Nuclear Matters

Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 629. Report on feasibility of developing commercial nuclear energy
generation facilities at existing Department of Energy
sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special
demonstration projects for the uranium mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class c radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor
terrorism.
Sec. 638. National uranium stockpile.
Sec. 639. Nuclear Regulatory Commission meetings.
Sec. 640. Employee benefits.

Subtitle C--Additional Hydrogen Production Provisions

Sec. 651. Hydrogen production programs.
Sec. 652. Definitions.

Subtitle D--Nuclear Security

Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and
certificate holders of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.

TITLE VII--VEHICLES AND FUELS

Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Lease condensates.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle
purchasing requirements.

Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

Part 1--Hybrid vehicles

Sec. 711. Hybrid vehicles.
Sec. 712. Hybrid retrofit and electric conversion program.

Part 2--Advanced vehicles

Sec. 721. Definitions.
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.

Part 3--Fuel cell buses

Sec. 731. Fuel cell transit bus demonstration.

Subtitle C--Clean School Buses

Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean
school buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.

Subtitle D--Miscellaneous

Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.
Sec. 759. Ultra-efficient engine technology for aircraft.

Subtitle E--Automobile Efficiency

Sec. 771. Authorization of appropriations for implementation and
enforcement of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible
average fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for
automobiles.

TITLE VIII--HYDROGEN

Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.
Sec. 810. Solar and wind technologies.

TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 900. Short title; definitions.

Subtitle A--Science Programs

Sec. 901. Office of Science programs.
Sec. 902. Systems biology program.
Sec. 903. Catalysis Research and Development Program.
Sec. 904. Hydrogen.
Sec. 905. Advanced scientific computing research.
Sec. 906. Fusion Energy Sciences program.
Sec. 907. Science and Technology Scholarship Program.
Sec. 908. Office of Scientific and Technical Information.
Sec. 909. Science and engineering pilot program.
Sec. 910. Authorization of appropriations.

Subtitle B--Research Administration and Operations

Sec. 911. Cost Sharing.
Sec. 912. Reprogramming.
Sec. 913. Merit-based competition.
Sec. 914. External technical review of departmental programs.
Sec. 915. Competitive award of management contracts.
Sec. 916. National Laboratory designation.
Sec. 917. Report on equal employment opportunity practices.
Sec. 918. User facility best practices plan.
Sec. 919. Support for science and energy infrastructure and facilities.
Sec. 920. Coordination plan.
Sec. 921. Availability of funds.

Subtitle C--Energy Efficiency

Chapter 1--Vehicles, Buildings, and Industries

Sec. 922. Programs.
Sec. 923. Vehicles.
Sec. 924. Buildings.
Sec. 925. Industries.
Sec. 926. Demonstration and commercial application.
Sec. 927. Secondary electric vehicle battery use program.
Sec. 928. Next generation lighting initiative.
Sec. 929. Definitions.
Sec. 930. Authorization of appropriations.
Sec. 931. Limitation on use of funds.

Chapter 2--Distributed Energy and Electric Energy Systems

Sec. 932. Distributed energy.
Sec. 933. Electricity transmission and distribution and energy
assurance.
Sec. 933A. Advanced portable power devices.
Sec. 934. Authorization of appropriations.

Subtitle D--Renewable energy

Sec. 935. Findings.
Sec. 936. Definitions.
Sec. 937. Programs.
Sec. 938. Solar.
Sec. 939. Bioenergy programs.
Sec. 940. Wind.
Sec. 941. Geothermal.
Sec. 942. Photovoltaic demonstration program.
Sec. 943. Additional programs.
Sec. 944. Analysis and evaluation.
Sec. 945. Authorization of appropriations.

Subtitle E--Nuclear Energy Programs

Sec. 946. Definition.
Sec. 947. Programs.

Chapter 1--Nuclear Energy Research Programs

Sec. 948. Advanced fuel recycling program.

[[Page H2212]]

Sec. 949. University nuclear science and engineering support.
Sec. 950. University-National Laboratory interactions.
Sec. 951. Nuclear Power 2010 Program.
Sec. 952. Generation IV Nuclear Energy Systems Initiative.
Sec. 953. Civilian infrastructure and facilities.
Sec. 954. Nuclear energy research and development infrastructure plan.
Sec. 955. Idaho National Laboratory facilities plan.
Sec. 956. Authorization of appropriations.

Chapter 2--Next Generation Nuclear Plant Program

Sec. 957. Definitions.
Sec. 958. Next generation nuclear power plant.
Sec. 959. Advisory committee.
Sec. 960. Program requirements.
Sec. 961. Authorization of appropriations.

Subtitle F--Fossil Energy

Chapter 1--Research Programs

Sec. 962. Enhanced fossil energy research and development programs.
Sec. 963. Fossil research and development.
Sec. 964. Oil and gas research and development.
Sec. 965. Transportation fuels.
Sec. 966. Fuel cells.
Sec. 967. Carbon dioxide capture research and development.
Sec. 968. Authorization of appropriations.

Chapter 2--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources

Sec. 969. Program authority.
Sec. 970. Ultra-deepwater and unconventional onshore natural gas and
other petroleum research and development program.
Sec. 971. Additional requirements for awards.
Sec. 972. Advisory committees.
Sec. 973. Limits on participation.
Sec. 974. Sunset.
Sec. 975. Definitions.
Sec. 976. Funding.

Subtitle G--Improved coordination and management of civilian science
and technology programs

Sec. 978. Improved coordination and management of civilian science and
technology programs.

TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1002. Other transactions authority.
Sec. 1003. University collaboration.
Sec. 1004. Sense of Congress.

TITLE XII--ELECTRICITY

Sec. 1201. Short title.

Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.

Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of Congress on Regional Transmission Organizations.
Sec. 1233. Regional Transmission Organization applications progress
report.
Sec. 1234. Federal utility participation in Regional Transmission
Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.

Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.

Subtitle E--Amendments to PURPA

Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale
requirements.
Sec. 1254. Interconnection.

Subtitle F--Repeal of PUHCA

Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.

Subtitle G--Market Transparency, Enforcement, and Consumer Protection

Sec. 1281. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.

Subtitle H--Merger Reform

Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.

Subtitle I--Definitions

Sec. 1295. Definitions.

Subtitle J--Technical and Conforming Amendments

Sec. 1297. Conforming amendments.

Subtitle K--Economic Dispatch

Sec. 1298. Economic dispatch.

TITLE XIII--ENERGY TAX INCENTIVES

Sec. 1300. Short title; etc.

Subtitle A--Energy Infrastructure Tax Incentives

Sec. 1301. Natural gas gathering lines treated as 7-year property.
Sec. 1302. Natural gas distribution lines treated as 15-year property.
Sec. 1303. Electric transmission property treated as 15-year property.
Sec. 1304. Expansion of amortization for certain atmospheric pollution
control facilities in connection with plants first placed
in service after 1975.
Sec. 1305. Modification of credit for producing fuel from a
nonconventional source.
Sec. 1306. Modifications to special rules for nuclear decommissioning
costs.
Sec. 1307. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1308. Determination of small refiner exception to oil depletion
deduction.

Subtitle B--Miscellaneous Energy Tax Incentives

Sec. 1311. Credit for residential energy efficient property.
Sec. 1312. Credit for business installation of qualified fuel cells.
Sec. 1313. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 1314. Amortization of delay rental payments.
Sec. 1315. Amortization of geological and geophysical expenditures.
Sec. 1316. Advanced lean burn technology motor vehicle credit.
Sec. 1317. Credit for energy efficiency improvements to existing homes.

Subtitle C--Alternative minimum tax relief

Sec. 1321. New nonrefundable personal credits allowed against regular
and minimum taxes.
Sec. 1322. Certain business energy credits allowed against regular and
minimum taxes.

TITLE XIV--MISCELLANEOUS

Subtitle C--Other Provisions

Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives.
Sec. 1446. Regulation of certain oil used in transformers.
Sec. 1447. Risk assessments.
Sec. 1448. Oxygen-fuel.
Sec. 1449. Petrochemical and oil refinery facility health assessment.
Sec. 1450. United States-Israel cooperation.
Sec. 1451. Carbon-based fuel cell development.

TITLE XV--ETHANOL AND MOTOR FUELS

Subtitle A--General Provisions

Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential
determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and
cellulosic biomass loan guarantee program.
Sec. 1512. Cellulosic biomass and waste-derived ethanol conversion
assistance.
Sec. 1513. Blending of compliant reformulated gasolines.

Subtitle B--Underground Storage Tank Compliance

Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.

[[Page H2213]]

Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on Tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.

Subtitle C--Boutique Fuels

Sec. 1541. Reducing the proliferation of boutique fuels.

TITLE XVI--STUDIES

Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.
Sec. 1612. Report on energy integration with Latin America.
Sec. 1613. Low-volume gas reservoir study.

TITLE XVII--RENEWABLE ENERGY

Sec. 1701. Grants to improve the commercial value of forest biomass for
electric energy, useful heat, transportation fuels,
petroleum-based product substitutes, and other commercial
purposes.
Sec. 1702. Environmental review for renewable energy projects.
Sec. 1703. Sense of Congress regarding generation capacity of
electricity from renewable energy resources on public
lands.

TITLE XVIII--GEOTHERMAL ENERGY

Sec. 1801. Short title.
Sec. 1802. Competitive lease sale requirements.
Sec. 1803. Direct use.
Sec. 1804. Royalties and near-term production incentives.
Sec. 1805. Expediting administrative action for geothermal leasing.
Sec. 1806. Coordination of geothermal leasing and permitting on Federal
lands.
Sec. 1807. Review and report to Congress.
Sec. 1808. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 1809. Assessment of geothermal energy potential.
Sec. 1810. Cooperative or unit plans.
Sec. 1811. Royalty on byproducts.
Sec. 1812. Repeal of authorities of Secretary to readjust terms,
conditions, rentals, and royalties.
Sec. 1813. Crediting of rental toward royalty.
Sec. 1814. Lease duration and work commitment requirements.
Sec. 1815. Advanced royalties required for suspension of production.
Sec. 1816. Annual rental.
Sec. 1817. Deposit and use of geothermal lease revenues for 5 fiscal
years.
Sec. 1818. Repeal of acreage limitations.
Sec. 1819. Technical amendments.
Sec. 1820. Intermountain West Geothermal Consortium.

TITLE XIX--HYDROPOWER

Sec. 1901. Increased hydroelectric generation at existing Federal
facilities.
Sec. 1902. Shift of project loads to off-peak periods.
Sec. 1903. Report identifying and describing the status of potential
hydropower facilities.

TITLE XX--OIL AND GAS--RESOURCES

Subtitle A--Production incentives

Sec. 2001. Definition of Secretary.
Sec. 2002. Program on oil and gas royalties in-kind.
Sec. 2003. Marginal property production incentives.
Sec. 2004. Incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico.
Sec. 2005. Royalty relief for deep water production.
Sec. 2006. Alaska offshore royalty suspension.
Sec. 2007. Oil and gas leasing in the National Petroleum Reserve in
Alaska.
Sec. 2008. Orphaned, abandoned, or idled wells on Federal land.
Sec. 2009. Combined hydrocarbon leasing.
Sec. 2010. Alternate energy-related uses on the outer Continental
Shelf.
Sec. 2011. Preservation of geological and geophysical data.
Sec. 2012. Oil and gas lease acreage limitations.
Sec. 2013. Deadline for decision on appeals of consistency
determination under the Coastal Zone Management Act of
1972.
Sec. 2014. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 2015. Gas hydrate production incentive.
Sec. 2016. Onshore deep gas production incentive.
Sec. 2017. Enhanced oil and natural gas production incentive.
Sec. 2018. Oil shale.
Sec. 2019. Use of information about oil and gas public challenges.

Subtitle B--Access to Federal land

Sec. 2021. Office of Federal Energy Project Coordination.
Sec. 2022. Federal onshore oil and gas leasing and permitting
practices.
Sec. 2023. Management of Federal oil and gas leasing programs.
Sec. 2024. Consultation regarding oil and gas leasing on public land.
Sec. 2025. Estimates of oil and gas resources underlying onshore
Federal land.
Sec. 2026. Compliance with executive order 13211; actions concerning
regulations that significantly affect energy supply,
distribution, or use.
Sec. 2027. Pilot project to improve Federal permit coordination.
Sec. 2028. Deadline for consideration of applications for permits.
Sec. 2029. Clarification of fair market rental value determinations for
public land and Forest Service rights-of-way.
Sec. 2030. Energy facility rights-of-way and corridors on Federal land.
Sec. 2031. Consultation regarding energy rights-of-way on public land.
Sec. 2032. Electricity transmission line right-of-way, Cleveland
National Forest and adjacent public land, California.
Sec. 2033. Sense of Congress regarding development of minerals under
Padre Island National Seashore.
Sec. 2034. Livingston Parish mineral rights transfer.

Subtitle C--Naval Petroleum Reserves

Sec. 2041. Transfer of administrative jurisdiction and environmental
remediation, Naval Petroleum Reserve Numbered 2, Kern
County, California.
Sec. 2042. Land conveyance, portion of Naval Petroleum Reserve Numbered
2, to City of Taft, California.
Sec. 2043. Revocation of land withdrawal.
Sec. 2044. Effect of transfer and conveyance.

Subtitle D--Miscellaneous Provisions

Sec. 2051. Split-estate Federal oil and gas leasing and development
practices.
Sec. 2052. Royalty payments under leases under the Outer Continental
Shelf Lands Act.
Sec. 2053. Domestic offshore energy reinvestment.
Sec. 2054. Repurchase of leases that are not allowed to be explored or
developed.

TITLE XXI--COAL

Sec. 2101. Short title.
Sec. 2102. Lease modifications for contiguous coal lands or coal
deposits.
Sec. 2103. Approval of logical mining units.
Sec. 2104. Payment of advance royalties under coal leases.
Sec. 2105. Elimination of deadline for submission of coal lease
operation and reclamation plan.
Sec. 2106. Amendment relating to financial assurances with respect to
bonus bids.
Sec. 2107. Inventory requirement.
Sec. 2108. Application of amendments.
Sec. 2109. Resolution of Federal resource development conflicts in the
Powder River Basin.

TITLE XXII--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 2201. Short title.
Sec. 2202. Definitions.
Sec. 2203. Leasing program for lands within the coastal plain.
Sec. 2204. Lease sales.
Sec. 2205. Grant of leases by the Secretary.
Sec. 2206. Lease terms and conditions.
Sec. 2207. Coastal Plain environmental protection.
Sec. 2208. Expedited judicial review.
Sec. 2209. Federal and State distribution of revenues.
Sec. 2210. Rights-of-way across the Coastal Plain.
Sec. 2211. Conveyance.
Sec. 2212. Local government impact aid and community service
assistance.

TITLE XXIII--SET AMERICA FREE (SAFE)

Sec. 2301. Short title.
Sec. 2302. Findings.
Sec. 2303. Purpose.
Sec. 2304. United States Commission on North American Energy Freedom.
Sec. 2305. North American energy freedom policy.

TITLE XXV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION

Sec. 2501. Short title.
Sec. 2502. Definitions.
Sec. 2503. Findings.
Sec. 2504. Research, development, and demonstration program.
Sec. 2505. Reports to Congress.
Sec. 2506. Authorization of appropriations.

TITLE XXVI--ADDITIONAL PROVISIONS

Sec. 2601. Limitation on required review under NEPA.
Sec. 2602. Enhancing energy efficiency in management of Federal lands.

TITLE I--ENERGY EFFICIENCY

Subtitle A--Federal Programs

SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL
BUILDINGS.

(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act (42

[[Page H2214]]

U.S.C. 8251 et seq.) is amended by adding at the end the
following:

``SEC. 552. 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
Congress (referred to in this section as `congressional
buildings') to meet the energy performance requirements for
Federal buildings established under section 543(a)(1); and
``(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 5 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) Annual Report.--The Architect of the Capitol 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) Table of Contents Amendment.--The table of contents of
the National Energy Conservation Policy Act is amended by
adding at the end of the items relating to part 3 of title V
the following new item:

``Sec. 552. Energy and water savings measures in congressional
buildings.''.

(c) Repeal.--Section 310 of the Legislative Branch
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
(d) Energy Infrastructure.--The Architect of the Capitol,
building on the Master Plan Study completed in July 2000,
shall commission a study to evaluate the energy
infrastructure of the Capital Complex to determine how the
infrastructure could be augmented to become more energy
efficient, using unconventional and renewable energy
resources, in a way that would enable the Complex to have
reliable utility service in the event of power fluctuations,
shortages, or outages.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Architect of the Capitol to carry
out subsection (d), $2,000,000 for each of fiscal years 2006
through 2010.

SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

(a) Energy Reduction Goals.--
(1) Amendment.--Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by
striking ``its Federal buildings so that'' and all that
follows through the end and inserting ``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
2006 through 2015 is reduced, as compared with the energy
consumption per gross square foot of the Federal buildings of
the agency in fiscal year 2003, by the percentage specified
in the following table:
``Fiscal Year Percentage reduction

2006...............................................................2
2007...............................................................4
2008...............................................................6
2009...............................................................8
2010..............................................................10
2011..............................................................12
2012..............................................................14
2013..............................................................16
2014..............................................................18
2015...........................................................20.''.
(2) Reporting baseline.--The energy reduction goals and
baseline established in paragraph (1) of section 543(a) of
the National Energy Conservation Policy Act (42 U.S.C.
8253(a)(1)), as amended by this subsection, supersede all
previous goals and baselines under such paragraph, and
related reporting requirements.
(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, 2014, 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 fiscal years 2016 through
2025.''.
(c) Exclusions.--Section 543(c)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by
striking ``An agency may exclude'' and all that follows
through the end and inserting ``(A) An agency may exclude,
from the energy performance requirement for a fiscal 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, Executive 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'';
(2) by striking ``a finding of impracticability'' and
inserting ``the exclusion''; and
(3) by striking ``energy consumption requirements'' and
inserting ``requirements of subsections (a) and (b)(1)''.
(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) Retention of Energy and Water Savings.--Section 546 of
the National Energy Conservation Policy Act (42 U.S.C. 8256)
is amended by adding at the end the following new subsection:
``(e) Retention of Energy and Water Savings.--An agency may
retain any funds appropriated to that agency for energy
expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of
section 543(a) and (b), that are not made because of energy
savings or water savings. Except as otherwise provided by
law, such funds may be used only for energy efficiency, water
conservation, or unconventional and renewable energy
resources projects.''.
(g) 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''.
(h) 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. 103. 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, 2012, in accordance with
guidelines established by the Secretary under paragraph (2),
all Federal buildings shall, for the purposes of efficient
use of energy and reduction in the cost of electricity used
in such buildings, be metered or submetered. Each agency
shall use, to the maximum extent practicable, advanced meters
or advanced metering devices that provide data at least daily
and that measure at least hourly consumption of electricity
in the Federal buildings of the agency. Such data shall be
incorporated into existing Federal energy tracking systems
and made available to Federal facility energy managers.
``(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
Services Administration, representatives from the metering
industry, utility industry, energy services industry, energy
efficiency industry, energy efficiency advocacy
organizations, 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

[[Page H2215]]

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 priorities for types and locations of
buildings to be metered and submetered based on cost-
effectiveness and a schedule of 1 or more dates, not later
than 1 year after the date of issuance of the guidelines, on
which the requirements specified in paragraph (1) shall take
effect; and
``(iv) establish exclusions from the requirements specified
in paragraph (1) based on the de minimis quantity of energy
use of a Federal building, industrial process, or structure.
``(3) Plan.--Not later than 6 months after the date
guidelines are established under paragraph (2), 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 requirements of paragraph (1),
including (A) how the agency will designate personnel
primarily responsible for achieving the requirements and (B)
demonstration by the agency, complete with documentation, of
any finding that advanced meters or advanced metering
devices, as defined in paragraph (1), are not practicable.''.

SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

(a) Requirements.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended
by section 101, is amended by adding at the end the
following:

``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' has the meaning given that
term in section 7902(a) of title 5, United States Code.
``(2) Energy star product.--The term `Energy Star product'
means a product that is rated for energy efficiency under an
Energy Star program.
``(3) Energy star program.--The term `Energy Star program'
means the program established by section 324A of the Energy
Policy and Conservation Act.
``(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 agency
for an energy consuming product, the head of the 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 agency is not required to
procure an Energy Star product or FEMP designated product
under paragraph (1) if the head of the agency finds in
writing that--
``(A) an Energy Star product or FEMP designated product is
not cost-effective over the life of the product taking energy
cost savings into account; or
``(B) no Energy Star product or FEMP designated product is
reasonably available that meets the functional requirements
of the agency.
``(3) Procurement planning.--The head of an agency shall
incorporate into the specifications for all procurements
involving energy consuming products and systems, including
guide specifications, project specifications, and
construction, renovation, and services contracts that include
provision of 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 products 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. The General
Services Administration or the Defense Logistics Agency shall
supply only Energy Star products or FEMP designated products
for all product categories covered by the Energy Star program
or the Federal Energy Management Program, except in cases
where the agency ordering a product specifies in writing that
no Energy Star product or FEMP designated product is
available to meet the buyer's functional requirements, or
that no Energy Star product or FEMP designated product is
cost-effective for the intended application over the life of
the product, taking energy cost savings into account.
``(d) Specific Products.--(1) 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
not later than 120 days after the date of the enactment of
this section, after considering the recommendations of
associated electric motor manufacturers and energy efficiency
groups.
``(2) All Federal agencies are encouraged to take actions
to maximize the efficiency of air conditioning and
refrigeration equipment, including appropriate cleaning and
maintenance, including the use of any system treatment or
additive that will reduce the electricity consumed by air
conditioning and refrigeration equipment. Any such treatment
or additive must be--
``(A) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and
refrigeration equipment without having an adverse impact on
air conditioning performance (including cooling capacity) or
equipment useful life;
``(B) determined by the Administrator of the Environmental
Protection Agency to be environmentally safe; and
``(C) shown to increase seasonal energy efficiency ratio
(SEER) or energy efficiency ratio (EER) when tested by the
National Institute of Standards and Technology according to
Department of Energy test procedures without causing any
adverse impact on the system, system components, the
refrigerant or lubricant, or other materials in the system.

Results of testing described in subparagraph (C) shall be
published in the Federal Register for public review and
comment. For purposes of this section, a hardware device or
primary refrigerant shall not be considered an additive.
``(e) Regulations.--Not later than 180 days after the date
of the enactment of this section, the Secretary shall issue
guidelines to carry out this section.''.
(b) Conforming Amendment.--The table of contents of the
National Energy Conservation Policy Act is further amended by
inserting after the item relating to section 552 the
following new item:

``Sec. 553. Federal procurement of energy efficient products.''.

SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

(a) Limitations.--
(1) In general.--Section 801(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by
adding at the end the following subparagraph:
``(E) All Federal agencies combined may not, after the date
of enactment of the Energy Policy Act of 2005, enter into
more than a total of 100 contracts under this title. Payments
made by the Federal Government under all contracts permitted
by this subparagraph combined shall not exceed a total of
$500,000,000. Each Federal agency shall appoint a coordinator
for Energy Savings Performance Contracts with the
responsibility to monitor the number of such contracts for
that Federal agency and the investment value of each
contract. The coordinators for each Federal agency shall meet
monthly to ensure that the limits specified in this
subparagraph on the number of contracts and the payments made
for the contracts are not exceeded.''.
(2) Definition.--Section 804(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(1)) is amended to
read as follows:
``(1) The term `Federal agency' means the Department of
Defense, the Department of Veterans Affairs, and the
Department of Energy. ''.
(3) Validity of contracts.--The amendments made by this
subsection shall not affect the validity of contracts entered
into under title VIII of the National Energy Conservation
Policy Act (42 U.S.C. 8287 et seq.) before the date of
enactment of this Act, or of contracts described in
subsection (h).
(b) Permanent Extension.--Effective October 1, 2006,
section 801(c) of the National Energy Conservation Policy Act
(42 U.S.C. 8287(c)) is repealed.
(c) Payment of Costs.--Section 802 of the National Energy
Conservation Policy Act (42 U.S.C. 8287a) is amended by
inserting ``, water, or wastewater treatment'' after
``payment of energy''.
(d) 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, water, or wastewater treatment, 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
in either interior or exterior applications.''.
(e) 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 that provides
for the performance of services for the design, acquisition,
installation, testing, and, where appropriate, operation,
maintenance, and repair, of an identified energy or water
conservation measure or series of measures at 1 or more
locations. Such contracts shall, with respect to an agency
facility that is a public building (as such term is defined
in section 3301 of title 40, United States Code), be in
compliance with the prospectus requirements and procedures of
section 3307 of title 40, United States Code.''.
(f) Energy or Water Conservation Measure.--Section 804(4)
of the National Energy

[[Page H2216]]

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; or
``(B) a water conservation measure that improves the
efficiency of water use, 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.''.
(g) Review.--Not later than 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, including the identification of additional
qualified contractors, and energy efficiency services
covered. The Secretary shall report these findings to
Congress 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.
(h) Extension of Authority.--Any energy savings performance
contract entered into under section 801 of the National
Energy Conservation Policy Act (42 U.S.C. 8287) after October
1, 2006, and before the date of enactment of this Act, shall
be deemed to have been entered into pursuant to such section
801 as amended by subsection (a) of this section.

SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY
INTENSITY.

(a) Voluntary Agreements.--The Secretary of Energy is
authorized to enter into voluntary agreements with 1 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 by
a significant amount relative to improvements in each sector
in recent years.
(b) Recognition.--The Secretary of Energy, in cooperation
with the Administrator of the Environmental Protection Agency
and other appropriate Federal agencies, shall recognize and
publicize the achievements of participants in voluntary
agreements under this section.
(c) Definition.--In this section, the term ``energy
intensity'' means the primary energy consumed per unit of
physical output in an industrial process.

SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED.

(a) Establishment.--The Secretary of Energy, in
consultation with the Administrator of General Services,
shall establish an Advanced Building Efficiency Testbed
program for the development, testing, and demonstration of
advanced engineering systems, components, and materials to
enable innovations in building technologies. The program
shall evaluate efficiency concepts for government and
industry buildings, and demonstrate the ability of next
generation buildings to support individual and organizational
productivity and health (including by improving indoor air
quality) as well as flexibility and technological change to
improve environmental sustainability. Such program shall
complement and not duplicate existing national programs.
(b) Participants.--The program established under subsection
(a) shall be led by a university with the ability to combine
the expertise from numerous academic fields including, at a
minimum, intelligent workplaces and advanced building systems
and engineering, electrical and computer engineering,
computer science, architecture, urban design, and
environmental and mechanical engineering. Such university
shall partner with other universities and entities who have
established programs and the capability of advancing
innovative building efficiency technologies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section $6,000,000 for each of the fiscal years 2006
through 2008, to remain available until expended. For any
fiscal year in which funds are expended under this section,
the Secretary shall provide \1/3\ of the total amount to the
lead university described in subsection (b), and provide the
remaining \2/3\ to the other participants referred to in
subsection (b) on an equal basis.

SEC. 109. FEDERAL BUILDING PERFORMANCE 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 2003 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--
``(i) if life-cycle cost-effective, for new Federal
buildings--
``(I) such buildings be designed so as to achieve energy
consumption levels at least 30 percent below those of the
version current as of the date of enactment of this paragraph
of the ASHRAE Standard or the International Energy
Conservation Code, as appropriate; and
``(II) sustainable design principles are applied to the
siting, design, and construction of all new and replacement
buildings; and
``(ii) where water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent they are life-cycle cost effective.
``(B) Additional revisions.--Not later than 1 year after
the date of approval of each subsequent revision of the
ASHRAE Standard or the International Energy Conservation
Code, as appropriate, the Secretary of Energy shall
determine, based on the cost-effectiveness of the
requirements under the amendments, whether the revised
standards established under this paragraph should be updated
to reflect the amendments.
``(C) Statement on compliance of new buildings.--In the
budget request of the Federal agency for each fiscal year and
each report submitted by the Federal agency under section
548(a) of the National Energy Conservation Policy Act (42
U.S.C. 8258(a)), the head of each Federal agency shall
include--
``(i) a list of all new Federal buildings owned, operated,
or controlled by the Federal agency; and
``(ii) a statement concerning whether the Federal buildings
meet or exceed the revised standards established under this
paragraph.''.

SEC. 111. DAYLIGHT SAVINGS.

(a) Repeal.--Section 3(a) of the Uniform Time Act of 1966
(15 U.S.C. 260a(a)) is amended--
(1) by striking ``April'' and inserting ``March''; and
(2) by striking ``October'' and inserting ``November''.
(b) Report to Congress.--Not later than 9 months after the
date of enactment of this Act, the Secretary of Energy shall
report to Congress on the impact this section on energy
consumption in the United States.

Subtitle B--Energy Assistance and State Programs

SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.

(a) Authorization of Appropriations.--Section 2602(b) of
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8621(b)) is amended by striking ``and $2,000,000,000 for each
of fiscal years 2002 through 2004'' and inserting ``and
$5,100,000,000 for each of fiscal years 2005 through 2007''.
(b) Renewable Fuels.--The Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et seq.) is amended by adding at
the end the following new section:

``Renewable fuels

``Sec. 2612. In providing assistance pursuant to this
title, a State, or any other person with which the State
makes arrangements to carry out the purposes of this title,
may purchase renewable fuels, including biomass.''.
(c) Report to Congress.--The Secretary of Energy shall
report to Congress on the use of renewable fuels in providing
assistance under the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.).

SEC. 122. WEATHERIZATION ASSISTANCE.

(a) Authorization of Appropriations.--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 ``$500,000,000 for
fiscal year 2006, $600,000,000 for fiscal year 2007, and
$700,000,000 for fiscal year 2008''.
(b) Eligibility.--Section 412(7) of the Energy Conservation
and Production Act (42 U.S.C. 6862(7)) is amended by striking
``125 percent'' both places it appears and inserting ``150
percent''.

SEC. 123. STATE ENERGY PROGRAMS.

(a) State Energy Conservation Plans.--Section 362 of the
Energy Policy and Conservation Act (42 U.S.C. 6322) is
amended by inserting at the end the following new subsection:
``(g) The Secretary shall, at least once every 3 years,
invite the Governor of each State to review and, if
necessary, revise the energy conservation plan of such State
submitted under subsection (b) or (e). Such reviews should
consider the energy conservation plans of other States within
the region, and identify opportunities and actions carried
out in pursuit of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the
Energy Policy and Conservation Act (42 U.S.C. 6324) is
amended to read as follows:

``State energy efficiency goals

``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
2005 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 2012 as compared to calendar
year 1990, and may contain interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is
amended by striking ``for fiscal years 1999 through 2003 such
sums as may be necessary'' and inserting ``$100,000,000 for
each of the fiscal years

[[Page H2217]]

2006 and 2007 and $125,000,000 for fiscal year 2008''.

SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible State'' means a
State that meets the requirements of subsection (b).
(2) Energy star program.--The term ``Energy Star program''
means the program established by section 324A of the Energy
Policy and Conservation Act.
(3) Residential energy star product.--The term
``residential Energy Star product'' means a product for a
residence that is rated for energy efficiency under the
Energy Star program.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(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).
(6) State program.--The term ``State program'' means a
State energy efficient appliance rebate program described in
subsection (b)(1).
(b) Eligible States.--A State shall be eligible to receive
an allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy
efficient appliance rebate program to provide rebates to
residential consumers for the purchase of residential Energy
Star products to replace used appliances of the same type;
(2) submits an application for the allocation at such time,
in such form, and containing such information as the
Secretary may require; and
(3) provides assurances satisfactory to the Secretary that
the State will use the allocation to supplement, but not
supplant, funds made available to carry out the State
program.
(c) Amount of Allocations.--
(1) In general.--Subject to paragraph (2), for each fiscal
year, the Secretary shall allocate to the State energy office
of each eligible State to carry out subsection (d) an amount
equal to the product obtained by multiplying the amount made
available under subsection (f) for the fiscal year by the
ratio that the population of the State in the most recent
calendar year for which data are available bears to the total
population of all eligible States in that calendar year.
(2) Minimum allocations.--For each fiscal year, the amounts
allocated under this subsection shall be adjusted
proportionately so that no eligible State is allocated a sum
that is less than an amount determined by the Secretary.
(d) Use of Allocated Funds.--The allocation to a State
energy office under subsection (c) may be used to pay up to
50 percent of the cost of establishing and carrying out a
State program.
(e) Issuance of Rebates.--Rebates may be provided to
residential consumers that meet the requirements of the State
program. The amount of a rebate shall be determined by the
State energy office, taking into consideration--
(1) the amount of the allocation to the State energy office
under subsection (c);
(2) the amount of any Federal or State tax incentive
available for the purchase of the residential Energy Star
product; and
(3) the difference between the cost of the residential
Energy Star product and the cost of an appliance that is not
a residential Energy Star product, but is of the same type
as, and is the nearest capacity, performance, and other
relevant characteristics (as determined by the State energy
office) to, the residential Energy Star product.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$50,000,000 for each of the fiscal years 2006 through 2010.

SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.

(a) Grants.--The Secretary of Energy may make grants to 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, to assist units of local government in the State in
improving the energy efficiency of public buildings and
facilities--
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a
comparable public building constructed in compliance with
standards prescribed in the most recent version of the
International Energy Conservation Code, or a similar State
code intended to achieve substantially equivalent efficiency
levels; or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior
to renovation, assuming a 3-year, weather-normalized average
for calculating such baseline.
(b) Administration.--State energy offices receiving grants
under this section shall--
(1) maintain such records and evidence of compliance as the
Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance
to encourage planning, financing, and design of energy
efficient public buildings by units of local government.
(c) Authorization of Appropriations.--For the purposes of
this section, there are authorized to be appropriated to the
Secretary of Energy $30,000,000 for each of fiscal years 2006
through 2010. Not more than 10 percent of appropriated funds
shall be used for administration.

SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.

(a) Grants.--The Secretary of Energy is authorized to make
grants to units of local government, 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 for--
(1) investments that develop alternative, renewable, and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(c) Definition.--For purposes of this section, the term
``Indian tribe'' means any Indian tribe, band, nation, or
other organized group or community, including any Alaskan
Native village or regional or village corporation as defined
in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), that 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 $20,000,000 for each of fiscal years 2006
through 2008.

Subtitle C--Energy Efficient Products

SEC. 131. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

``There is established at the Department of Energy and the
Environmental Protection Agency a voluntary program to
identify and promote energy-efficient products and buildings
in order to reduce energy consumption, improve energy
security, and reduce pollution through voluntary labeling of
or other forms of communication about 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 2
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, including special outreach to small businesses;
``(3) preserve the integrity of the Energy Star label;
``(4) solicit comments from interested parties prior to
establishing or revising an Energy Star product category,
specification, or criterion (or effective dates for any of
the foregoing);
``(5) upon adoption of a new or revised product category,
specification, or criterion, provide reasonable notice to
interested parties of any changes (including effective dates)
in product categories, specifications, or criteria along with
an explanation of such changes and, where appropriate,
responses to comments submitted by interested parties; and
``(6) provide appropriate lead time (which shall be 9
months, unless the Agency or Department determines otherwise)
prior to the effective date for a new or a significant
revision to a product category, specification, or criterion,
taking into account the timing requirements of the
manufacturing, product marketing, and distribution process
for the specific product addressed.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy and Conservation Act is amended by
inserting after the item relating to section 324 the
following new item:

``Sec. 324A. Energy Star program.''.

SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

Section 337 of the Energy Policy and Conservation Act (42
U.S.C. 6307) is amended by adding at the end the following:
``(c) HVAC Maintenance.--For the purpose of ensuring that
installed air conditioning and heating systems operate at
their maximum rated efficiency levels, the Secretary shall,
not later than 180 days after 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,

[[Page H2218]]

and ventilating systems. The Secretary shall carry out the
program in a cost-shared manner in cooperation with the
Administrator of the Environmental Protection Agency and such
other entities as the Secretary considers appropriate,
including industry trade associations, industry members, and
energy efficiency organizations.
``(d) Small Business Education and Assistance.--The
Administrator of the Small Business Administration, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall
develop and coordinate a Government-wide program, building on
the existing Energy Star for Small Business Program, to
assist small businesses to become more energy efficient,
understand the cost savings obtainable through efficiencies,
and identify financing options for energy efficiency
upgrades. The Secretary and the Administrator of the Small
Business Administration shall make the program information
available directly to small businesses and through other
Federal agencies, including the Federal Emergency Management
Program and the Department of Agriculture.''.

SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL
PRODUCTS.

(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (30)(S), by striking the period and adding
at the end the following: ``but does not include any lamp
specifically designed to be used for special purpose
applications and that is unlikely to be used in general
purpose applications such as those described in subparagraph
(D), and also does not include any lamp not described in
subparagraph (D) that is excluded by the Secretary, by rule,
because the lamp is designed for special applications and is
unlikely to be used in general purpose applications.''; and
(2) by adding at the end the following:
``(32) The term `battery charger' means a device that
charges batteries for consumer products and includes battery
chargers embedded in other consumer products.
``(33) The term `commercial refrigerators, freezers, and
refrigerator-freezers' means refrigerators, freezers, or
refrigerator-freezers that--
``(A) are not consumer products regulated under this Act;
and
``(B) incorporate 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 an electrically powered integral light
source that illuminates the legend `EXIT' and any directional
indicators and provides contrast between the legend, any
directional indicators, and the background.
``(36)(A) Except as provided in subparagraph (B), the term
`distribution transformer' means a transformer that--
``(i) has an input voltage of 34.5 kilovolts or less;
``(ii) has an output voltage of 600 volts or less; and
``(iii) is rated for operation at a frequency of 60 Hertz.
``(B) The term `distribution 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, such as those commonly known as drive
transformers, rectifier transformers, auto-transformers,
Uninterruptible Power System transformers, impedance
transformers, regulating transformers, sealed and
nonventilating transformers, machine tool transformers,
welding transformers, grounding transformers, or testing
transformers, that are designed to be used in a special
purpose application and are unlikely to be used in general
purpose applications; or
``(iii) any transformer not listed in clause (ii) that is
excluded by the Secretary by rule because--
``(I) the transformer is designed for a special
application;
``(II) the transformer is unlikely to be used in general
purpose applications; and
``(III) the application of standards to the transformer
would not result in significant energy savings.
``(37) The term `low-voltage dry-type distribution
transformer' means a distribution transformer that--
``(A) has an input voltage of 600 volts or less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(38) The term `standby mode' means the lowest power
consumption mode that--
``(A) cannot be switched off or influenced by the user; and
``(B) may persist for an indefinite time when an appliance
is connected to the main electricity supply and used in
accordance with the manufacturer's instructions,

as defined on an individual product basis by the Secretary.
``(39) The term `torchiere' means a portable electric lamp
with a reflector bowl that directs light upward so as to give
indirect illumination.
``(40) The term `traffic signal module' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication,
consisting of a light source, a lens, and all other parts
necessary for operation, that communicates movement messages
to drivers through red, amber, and green colors.
``(41) The term `transformer' means a device consisting of
2 or more coils of insulated wire that transfers alternating
current by electromagnetic induction from 1 coil to another
to change the original voltage or current value.
``(42) 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.
``(43) The term `ceiling fan' means a non-portable device
that is suspended from a ceiling for circulating air via the
rotation of fan blades.
``(44) The term `ceiling fan light kit' means equipment
designed to provide light from a ceiling fan which can be--
``(A) integral, such that the equipment is attached to the
ceiling fan prior to the time of retail sale; or
``(B) attachable, such that at the time of retail sale the
equipment is not physically attached to the ceiling fan, but
may be included inside the ceiling fan package at the time of
sale or sold separately for subsequent attachment to the
fan.''.
(b) Test Procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(1) in subsection (b), by adding at the end the following:
``(9) Test procedures for illuminated exit signs shall be
based on the test method used under Version 2.0 of the Energy
Star program of the Environmental Protection Agency for
illuminated exit signs.
``(10) Test procedures for distribution transformers and
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. For purposes of section 346(a), this test
procedure shall be deemed to be testing requirements
prescribed by the Secretary under section 346(a)(1) for
distribution transformers for which the Secretary makes a
determination that energy conservation standards would be
technologically feasible and economically justified, and
would result in significant energy savings.
``(11) Test procedures for traffic signal modules shall be
based on the test method used under the Energy Star program
of the Environmental Protection Agency for traffic signal
modules, as in effect on the date of enactment of this
paragraph.
``(12) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods used under the
August 9, 2001, version of the Energy Star program of the
Environmental Protection Agency and Department of Energy for
compact fluorescent lamps. Covered products shall meet all
test requirements for regulated parameters in section
325(bb). However, covered products may be marketed prior to
completion of lamp life and lumen maintenance at 40 percent
of rated life testing provided manufacturers document
engineering predictions and analysis that support expected
attainment of lumen maintenance at 40 percent rated life and
lamp life time.
``(13) The Secretary shall, not later than 18 months after
the date of enactment of this paragraph, prescribe testing
requirements for ceiling fans and ceiling fan light kits.'';
and
(2) by adding at the end the following:
``(f) Additional Consumer and Commercial Products.--The
Secretary shall, not later than 24 months after the date of
enactment of this subsection, prescribe testing requirements
for suspended ceiling fans, refrigerated bottled or canned
beverage vending machines, 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.''.
(c) New Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by adding at the
end the following:
``(u) Battery Charger and External Power Supply 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 and test
procedures for the power use of battery chargers and external
power supplies. In establishing these test procedures, the
Secretary shall consider, among other factors, existing
definitions and test procedures used for measuring energy
consumption in standby mode and other modes 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.

[[Page H2219]]

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 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
issued 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 energy use that--
``(i) meets the criteria and procedures 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) Review of standby energy use in covered products.--In
determining pursuant to section 323 whether test procedures
and energy conservation standards pursuant to this section
should be revised, the Secretary shall consider, for covered
products that 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, standby mode
power consumption compared to overall product energy
consumption.
``(3) Rulemaking.--The Secretary shall not propose a
standard under this section unless the Secretary has issued
applicable test procedures for each product pursuant to
section 323.
``(4) Effective date.--Any standard issued under this
subsection shall be applicable to products manufactured or
imported 3 years after the date of issuance.
``(5) Voluntary programs.--The Secretary and the
Administrator shall collaborate and develop programs,
including programs pursuant to section 324A (relating to
Energy Star Programs) and other voluntary industry agreements
or codes of conduct, that are designed to reduce standby mode
energy use.
``(v) Suspended Ceiling Fans, Vending Machines, and
Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--The Secretary shall not later than 36 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, and
commercial refrigerators, freezers, and refrigerator-
freezers. In establishing standards under this subsection,
the Secretary shall use the criteria and procedures contained
in subsections (o) and (p). 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, 2006, shall meet the
Version 2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
``(x) Torchieres.--Torchieres manufactured on or after
January 1, 2006--
``(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 Distribution Transformers.--The
efficiency of low voltage dry-type distribution transformers
manufactured on or after January 1, 2006, shall be the Class
I Efficiency Levels for distribution 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-1-2002).
``(z) Traffic Signal Modules.--Traffic signal modules
manufactured on or after January 1, 2006, shall meet the
performance requirements used under the Energy Star program
of the Environmental Protection Agency for traffic signals,
as in effect on the date of enactment of this subsection, and
shall be installed with compatible, electrically connected
signal control interface devices and conflict monitoring
systems.
``(aa) Unit Heaters.--Unit heaters manufactured on or after
the date that is 3 years after the date of enactment of this
subsection shall be equipped with an intermittent ignition
device and shall have either power venting or an automatic
flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp
and covered lamp (no reflector) medium base compact
fluorescent lamps manufactured on or after January 1, 2006,
shall meet the following requirements prescribed by the
August 9, 2001, version of the Energy Star Program
Requirements for Compact Fluorescent Lamps, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued
by the Environmental Protection Agency and Department of
Energy: minimum initial efficacy; lumen maintenance at 1000
hours; lumen maintenance at 40 percent of rated life; rapid
cycle stress test; and lamp life. The Secretary may, by rule,
establish requirements for color quality (CRI); power factor;
operating frequency; and maximum allowable start time based
on the requirements prescribed by the August 9, 2001, version
of the Energy Star Program Requirements for Compact
Fluorescent Lamps. The Secretary may, by rule, revise these
requirements or establish other requirements considering
energy savings, cost effectiveness, and consumer
satisfaction.
``(cc) Effective Date.--Section 327 shall apply--
``(1) to products for which standards are to be established
under subsections (u) and (v) on the date on which a final
rule is issued by the Department of Energy, except that any
State or local standards prescribed or enacted for any such
product prior to the date on which such final rule is issued
shall not be preempted until the standard established under
subsection (u) or (v) for that product takes effect; and
``(2) to products for which standards are established under
subsections (w) through (bb) on the date of enactment of
those subsections, except that any State or local standards
prescribed or enacted prior to the date of enactment of those
subsections shall not be preempted until the standards
established under subsections (w) through (bb) take effect.
``(dd) Ceiling Fans.--
``(1) Features.--All ceiling fans manufactured on or after
January 1, 2006, shall have the following features:
``(A) Lighting controls operate independently from fan
speed controls.
``(B) Adjustable speed controls (either more than 1 speed
or variable speed).
``(C) The capability of reversible fan action, except for
fans sold for industrial applications, outdoor applications,
and where safety standards would be violated by the use of
the reversible mode. The Secretary may promulgate regulations
to define in greater detail the exceptions provided under
this subparagraph but may not substantively expand the
exceptions.
``(2) Revised standards.--
``(A) In general.--Notwithstanding any provision of this
Act, if the requirements of subsections (o) and (p) are met,
the Secretary may consider and prescribe energy efficiency or
energy use standards for electricity used by ceiling fans to
circulate air in a room.
``(B) Special consideration.--If the Secretary sets such
standards, the Secretary shall consider--
``(i) exempting or setting different standards for certain
product classes for which the primary standards are not
technically feasible or economically justified; and
``(ii) establishing separate exempted product classes for
highly decorative fans for which air movement performance is
a secondary design feature.
``(C) Application.--Any air movement standard prescribed
under this subsection shall apply to products manufactured on
or after the date that is 3 years after the date of
publication of a final rule establishing the standard.''.
(d) Residential Furnace Fans.--Section 325(f)(3) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is
amended by adding the following new subparagraph at the end:
``(D) Notwithstanding any provision of this Act, the
Secretary may consider, and prescribe, if the requirements of
subsection (o) of this section are met, energy efficiency or
energy use standards for electricity used for purposes of
circulating air through duct work.''.

SEC. 134. ENERGY LABELING.

(a) Rulemaking on Effectiveness of Consumer Product
Labeling.--Section 324(a)(2) 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 3 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 not later than 2 years after
the date of enactment of this subparagraph.
``(G)(i) Not later than 18 months after date of enactment
of this subparagraph, the Commission shall prescribe by rule,
pursuant to this section, labeling requirements for the
electricity used by ceiling fans to circulate air in a room.
``(ii) The rule prescribed under clause (i) shall apply to
products manufactured after the later of--
``(I) January 1, 2009; or
``(II) the date that is 60 days after the final rule is
prescribed.''.
(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 or the Commission, as appropriate, may,
for covered products referred to in subsections (u) through
(aa) of section 325, prescribe, by rule, pursuant to this
section, labeling requirements for such products after a test
procedure has been set pursuant to section 323. In the case
of products to which TP-1 standards under section 325(y)
apply, labeling requirements shall be based on the `Standard
for the Labeling of Distribution Transformer Efficiency'
prescribed by the National Electrical Manufacturers
Association (NEMA TP-3) as in effect upon the date of
enactment of this paragraph.''.

SEC. 135. PREEMPTION.

Section 327 of the Energy Policy and Conservation Act (42
U.S.C. 6297) is amended by adding at the end the following:
``(h) Ceiling Fans.--Effective on January 1, 2006, this
section shall apply to and supersede all State and local
standards prescribed or enacted for ceiling fans and ceiling
fan light kits.''.

SEC. 136. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.

Section 327 of the Energy Policy and Conservation Act (42
U.S.C. 6297) is amended by

[[Page H2220]]

adding at the end the following new subsection:
``(h) Limitation on Preemption.--Subsections (a) and (b)
shall not apply with respect to State regulation of energy
consumption or water use of any covered product during any
period of time--
``(1) after the date which is 3 years after a Federal
standard is required by law to be established or revised, but
has not been established or revised; and
``(2) before the date on which such Federal standard is
established or revised.''.

Subtitle D--Public Housing

SEC. 141. 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. 142. 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 semicolon 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. 143. 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)(ii)(IV) (relating to solar energy
systems), 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 last 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)(IV) of the
National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)(IV)) is
amended--
(1) by striking ``with respect to rehabilitation projects
involving not more than five family units,''; and
(2) 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.--Section
231(c)(2)(C) of the National Housing Act (12 U.S.C.
1715v(c)(2)(C)) 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. 144. PUBLIC HOUSING CAPITAL FUND.

Section 9 of the United States Housing Act of 1937 (42
U.S.C. 1437g) is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (I), by striking ``and'' at the end;
(B) in subparagraph (J), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(K) 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;
and
``(L) integrated utility management and capital planning to
maximize energy conservation and efficiency measures.''; and
(2) in subsection (e)(2)(C)--
(A) by striking ``The'' and inserting the following:
``(i) In general.--The''; and
(B) by adding at the end the following:
``(ii) Third party contracts.--Contracts described in
clause (i) may include contracts for equipment conversions to
less costly utility sources, projects with resident-paid
utilities, and adjustments to frozen base year consumption,
including systems repaired to meet applicable building and
safety codes and adjustments for occupancy rates increased by
rehabilitation.
``(iii) Term of contract.--The total term of a contract
described in clause (i) shall not exceed 20 years to allow
longer payback periods for retrofits, including windows,
heating system replacements, wall insulation, site-based
generation, advanced energy savings technologies, including
renewable energy generation, and other such retrofits.''.

SEC. 145. 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 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. 147. ENERGY-EFFICIENT APPLIANCES.

In purchasing appliances, a public housing agency shall
purchase energy-efficient appliances that are Energy Star
products or FEMP-designated products, as such terms are
defined in section 553 of the National Energy Conservation
Policy Act (as amended by this title), unless the purchase of
energy-efficient appliances is not cost-effective to the
agency.

SEC. 148. ENERGY EFFICIENCY STANDARDS.

Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``1 year after the date of the enactment of
the Energy Policy Act of 1992'' and inserting ``September 30,
2006'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of 1937 (42
U.S.C. 1437v), where such standards are determined to be cost
effective by the Secretary of Housing and Urban
Development.''; and
(B) in paragraph (2), by striking ``Council of American''
and all that follows through ``90.1-1989')'' and inserting
``2003 International Energy Conservation Code'';
(2) in subsection (b)--
(A) by striking ``within 1 year after the date of the
enactment of the Energy Policy Act of 1992'' and inserting
``by September 30, 2006''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2003 International Energy
Conservation Code''; and
(3) in subsection (c)--
(A) in the heading, by striking ``Model Energy Code'' and
inserting ``The International Energy Conservation Code''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2003 International Energy
Conservation Code''.

SEC. 149. ENERGY STRATEGY FOR HUD.

The Secretary of Housing and Urban Development shall
develop and implement an integrated strategy to reduce
utility expenses through cost-effective energy conservation
and efficiency measures and energy efficient design and
construction of public and assisted housing. The energy
strategy shall include the development of energy reduction
goals and incentives for public housing agencies. The
Secretary shall submit a report to Congress, not later than 1
year after the date of the enactment of this Act, on the
energy strategy and the actions taken by the Department of
Housing and Urban Development to monitor the energy usage of
public housing agencies and shall submit an update every 2
years thereafter on progress in implementing the strategy.

TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

(a) Resource Assessment.--Not later than 6 months after the
date of enactment of this Act, and each year thereafter, the
Secretary of Energy shall review the available assessments of
renewable energy resources within the United States,
including solar, wind, biomass, ocean (tidal, wave, current,
and thermal), 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 1 year after the
date of enactment of this Act, and each year thereafter, the
Secretary shall publish a report based on the assessment
under subsection (a). The report shall contain--

[[Page H2221]]

(1) a detailed inventory describing the available amount
and characteristics of the renewable energy resources; and
(2) such other information as the Secretary 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, together with an
identification of any barriers to providing adequate
transmission for remote sources of renewable energy resources
to current and emerging markets, recommendations for removing
or addressing such barriers, and ways to provide access to
the grid that do not unfairly disadvantage renewable or other
energy producers.
(c) Authorization of Appropriations.--For the purposes of
this section, there are authorized to be appropriated to the
Secretary of Energy $10,000,000 for each of fiscal years 2006
through 2010.

SEC. 202. 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 ``. If there are
insufficient appropriations to make full payments for
electric production from all qualified renewable energy
facilities in any given year, the Secretary shall assign 60
percent of appropriated funds for that year to facilities
that use solar, wind, geothermal, or closed-loop (dedicated
energy crops) biomass technologies to generate electricity,
and assign the remaining 40 percent to other projects. The
Secretary may, after transmitting to Congress an explanation
of the reasons therefor, alter the percentage requirements of
the preceding sentence.''.
(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 ``a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code
of 1986, a State, Commonwealth, territory, or possession of
the United States or the District of Columbia, or a political
subdivision thereof, or an Indian tribal government or
subdivision thereof,''; and
(2) by inserting ``landfill gas, livestock methane, ocean
(tidal, wave, current, and thermal),'' 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 ``after October 1, 2005, and
before October 1, 2015''.
(d) 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, livestock methane, ocean (tidal,
wave, current, and thermal),'' after ``wind, biomass,''.
(e) 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, 2025''.
(f) Authorization of Appropriations.--Section 1212(g) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended
to read as follows:
``(g) 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 2005 through 2025.
``(2) Availability of funds.--Funds made available under
paragraph (1) shall remain available until expended.''.

SEC. 203. FEDERAL PURCHASE REQUIREMENT.

(a) Requirement.--The President, acting through the
Secretary of Energy, shall seek to ensure that, to the extent
economically feasible and technically practicable, of the
total amount of electric energy the Federal Government
consumes during any fiscal year, the following amounts shall
be renewable energy:
(1) Not less than 3 percent in fiscal years 2007 through
2009.
(2) Not less than 5 percent in fiscal years 2010 through
2012.
(3) Not less than 7.5 percent in fiscal year 2013 and each
fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any solid,
nonhazardous, cellulosic material that is derived from--
(A) any of the following forest-related resources: mill
residues, precommercial thinnings, slash, and brush, or
nonmerchantable material;
(B) solid wood waste materials, including waste pallets,
crates, dunnage, manufacturing and construction wood wastes
(other than pressure-treated, chemically-treated, or painted
wood wastes), and landscape or right-of-way tree trimmings,
but not including municipal solid waste (garbage), gas
derived from the biodegradation of solid waste, or paper that
is commonly recycled;
(C) agriculture wastes, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop by-products
or residues, and livestock waste nutrients; or
(D) a plant that is grown exclusively as a fuel for the
production of electricity.
(2) Renewable energy.--The term ``renewable energy'' means
electric energy generated from solar, wind, biomass, landfill
gas, ocean (tidal, wave, current, and thermal), geothermal,
municipal solid waste, or new hydroelectric generation
capacity achieved from increased efficiency or additions of
new capacity at an existing hydroelectric project.
(c) Calculation.--For purposes of determining compliance
with the requirement of this section, the amount of renewable
energy shall be doubled if--
(1) the renewable energy is produced and used on-site at a
Federal facility;
(2) the renewable energy is produced on Federal lands and
used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) and used at a Federal facility.
(d) Report.--Not later than April 15, 2007, and every 2
years thereafter, the Secretary of Energy shall provide a
report to Congress on the progress of the Federal Government
in meeting the goals established by this section.

SEC. 204. INSULAR AREAS ENERGY SECURITY.

Section 604 of the Act entitled ``An Act to authorize
appropriations for certain insular areas of the United
States, and for other purposes'', approved December 24, 1980
(48 U.S.C. 1492), is amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the following
new paragraphs:
``(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by
the hurricanes and typhoons which frequently occur in insular
areas and such damage often costs millions of dollars to
repair; and
``(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment
prepared pursuant to subsection (c) reveals the need to
reassess the state of energy production, consumption,
infrastructure, reliance on imported energy, opportunities
for energy conservation and increased energy efficiency, and
indigenous sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
``(e)(1) The Secretary of the Interior, in consultation
with the Secretary of Energy and the head of government of
each insular area, shall update the plans required under
subsection (c) by--
``(A) updating the contents required by subsection (c);
``(B) drafting long-term energy plans for such insular
areas with the objective of reducing, to the extent feasible,
their reliance on energy imports by the year 2012, increasing
energy conservation and energy efficiency, and maximizing, to
the extent feasible, use of indigenous energy sources; and
``(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and
distribution lines in each insular area be protected from
damage caused by hurricanes and typhoons.
``(2) Not later than December 31, 2006, the Secretary of
the Interior shall submit to Congress the updated plans for
each insular area required by this subsection.''; and
(4) by amending subsection (g)(4) to read as follows:
``(4) Power line grants for insular areas.--
``(A) In general.--The Secretary of the Interior is
authorized to make grants to governments of insular areas of
the United States to carry out eligible projects to protect
electric power transmission and distribution lines in such
insular areas from damage caused by hurricanes and typhoons.
``(B) Eligible projects.--The Secretary may award grants
under subparagraph (A) only to governments of insular areas
of the United States that submit written project plans to the
Secretary for projects that meet the following criteria:
``(i) The project is designed to protect electric power
transmission and distribution lines located in 1 or more of
the insular areas of the United States from damage caused by
hurricanes and typhoons.
``(ii) The project is likely to substantially reduce the
risk of future damage, hardship, loss, or suffering.
``(iii) The project addresses 1 or more problems that have
been repetitive or that pose a significant risk to public
health and safety.
``(iv) The project is not likely to cost more than the
value of the reduction in direct damage and other negative
impacts that the project is designed to prevent or mitigate.
The cost benefit analysis required by this criterion shall be
computed on a net present value basis.
``(v) The project design has taken into consideration long-
term changes to the areas and persons it is designed to
protect and has manageable future maintenance and
modification requirements.
``(vi) The project plan includes an analysis of a range of
options to address the problem it is designed to prevent or
mitigate and a justification for the selection of the project
in light of that analysis.
``(vii) The applicant has demonstrated to the Secretary
that the matching funds required by subparagraph (D) are
available.
``(C) Priority.--When making grants under this paragraph,
the Secretary shall give priority to grants for projects
which are likely to--

[[Page H2222]]

``(i) have the greatest impact on reducing future disaster
losses; and
``(ii) best conform with plans that have been approved by
the Federal Government or the government of the insular area
where the project is to be carried out for development or
hazard mitigation for that insular area.
``(D) Matching requirement.--The Federal share of the cost
for a project for which a grant is provided under this
paragraph shall not exceed 75 percent of the total cost of
that project. The non-Federal share of the cost may be
provided in the form of cash or services.
``(E) Treatment of funds for certain purposes.--Grants
provided under this paragraph shall not be considered as
income, a resource, or a duplicative program when determining
eligibility or benefit levels for Federal major disaster and
emergency assistance.
``(F) Authorization of appropriations.--There are
authorized to be appropriated to carry out this paragraph
$5,000,000 for each fiscal year beginning after the date of
the enactment of this paragraph.''.

SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

(a) In General.--Part 4 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8271 et seq.) is amended
by adding at the end the following:

``SEC. 570. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.

``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Secretary may establish a
photovoltaic energy commercialization program for the
procurement and installation of photovoltaic solar electric
systems for electric production in new and existing public
buildings.
``(2) Purposes.--The purposes of the program shall be to
accomplish the following:
``(A) To accelerate the growth of a commercially viable
photovoltaic industry to make this energy system available to
the general public as an option which can reduce the national
consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption and costs of
the Federal Government.
``(C) To attain the goal of installing solar energy systems
in 20,000 Federal buildings by 2010, as contained in the
Federal Government's Million Solar Roof Initiative of 1997.
``(D) To stimulate the general use within the Federal
Government of life-cycle costing and innovative procurement
methods.
``(E) To develop program performance data to support policy
decisions on future incentive programs with respect to
energy.
``(3) Acquisition of photovoltaic solar electric systems.--
``(A) In general.--The program shall provide for the
acquisition of photovoltaic solar electric systems and
associated storage capability for use in public buildings.
``(B) Acquisition levels.--The acquisition of photovoltaic
electric systems shall be at a level substantial enough to
allow use of low-cost production techniques with at least 150
megawatts (peak) cumulative acquired during the 5 years of
the program.
``(4) Administration.--The Secretary shall administer the
program and shall--
``(A) issue such rules and regulations as may be
appropriate to monitor and assess the performance and
operation of photovoltaic solar electric systems installed
pursuant to this subsection;
``(B) develop innovative procurement strategies for the
acquisition of such systems; and
``(C) transmit to Congress an annual report on the results
of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Secretary shall establish a
photovoltaic solar energy systems evaluation program to
evaluate such photovoltaic solar energy systems as are
required in public buildings.
``(2) Program requirement.--In evaluating photovoltaic
solar energy systems under the program, the Secretary shall
ensure that such systems reflect the most advanced
technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization program.--There
are authorized to be appropriated to carry out subsection (a)
$50,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.
``(2) Photovoltaic systems evaluation program.--There are
authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2006 through 2010. Such
sums shall remain available until expended.''.
(b) Conforming Amendment.--The table of sections for the
National Energy Conservation Policy Act is amended by
inserting after the item relating to section 569 the
following:

``Sec. 570. Use of photovoltaic energy in public buildings.''.

SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST
BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, PETROLEUM-BASED PRODUCT
SUBSTITUTES, AND OTHER COMMERCIAL PURPOSES.

(a) Findings.--Congress finds the following:
(1) Thousands of communities in the United States, many
located near Federal lands, are at risk to wildfire.
Approximately 190,000,000 acres of land managed by the
Secretary of Agriculture and the Secretary of the Interior
are at risk of catastrophic fire in the near future. The
accumulation of heavy forest fuel loads continues to increase
as a result of disease, insect infestations, and drought,
further raising the risk of fire each year.
(2) In addition, more than 70,000,000 acres across all land
ownerships are at risk to higher than normal mortality over
the next 15 years from insect infestation and disease. High
levels of tree mortality from insects and disease result in
increased fire risk, loss of old growth, degraded watershed
conditions, and changes in species diversity and
productivity, as well as diminished fish and wildlife habitat
and decreased timber values.
(3) Preventive treatments such as removing fuel loading,
ladder fuels, and hazard trees, planting proper species mix
and restoring and protecting early successional habitat, and
other specific restoration treatments designed to reduce the
susceptibility of forest land, woodland, and rangeland to
insect outbreaks, disease, and catastrophic fire present the
greatest opportunity for long-term forest health by creating
a mosaic of species-mix and age distribution. Such prevention
treatments are widely acknowledged to be more successful and
cost effective than suppression treatments in the case of
insects, disease, and fire.
(4) The byproducts of preventive treatment (wood, brush,
thinnings, chips, slash, and other hazardous fuels) removed
from forest lands, woodlands and rangelands represent an
abundant supply of biomass for biomass-to-energy facilities
and raw material for business. There are currently few
markets for the extraordinary volumes of byproducts being
generated as a result of the necessary large-scale preventive
treatment activities.
(5) The United States should--
(A) promote economic and entrepreneurial opportunities in
using byproducts removed through preventive treatment
activities related to hazardous fuels reduction, disease, and
insect infestation; and
(B) develop and expand markets for traditionally underused
wood and biomass as an outlet for byproducts of preventive
treatment activities.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means trees and woody
plants, including limbs, tops, needles, and other woody
parts, and byproducts of preventive treatment, such as wood,
brush, thinnings, chips, and slash, that are removed--
(A) to reduce hazardous fuels; or
(B) to reduce the risk of or to contain disease or insect
infestation.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).
(3) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary concerned);
(C) an Indian tribe;
(D) a small business, micro-business, or a corporation that
is incorporated in the United States; and
(E) a nonprofit organization.
(4) Preferred community.--The term ``preferred community''
means--
(A) any town, township, municipality, or other similar unit
of local government (as determined by the Secretary
concerned) that--
(i) has a population of not more than 50,000 individuals;
and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation; or
(B) any county that--
(i) is not contained within a metropolitan statistical
area; and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation.
(5) Secretary concerned.--The term ``Secretary concerned''
means--
(A) the Secretary of Agriculture with respect to National
Forest System lands; and
(B) the Secretary of the Interior with respect to Federal
lands under the jurisdiction of the Secretary of the Interior
and Indian lands.
(c) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
any person that owns or operates a facility that uses biomass
as a raw material to produce electric energy, sensible heat,
transportation fuels, or substitutes for petroleum-based
products to offset the costs incurred to purchase biomass for
use by such facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant
recipient shall keep such records as the Secretary concerned
may require to fully and correctly disclose the use of the
grant funds and all transactions involved in the purchase of
biomass. Upon notice by a representative of the Secretary
concerned, the grant recipient shall afford the
representative reasonable access to the facility that
purchases or uses biomass and an opportunity to examine the
inventory and records of the facility.

[[Page H2223]]

(d) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
persons to offset the cost of projects to develop or research
opportunities to improve the use of, or add value to,
biomass. In making such grants, the Secretary concerned shall
give preference to persons in preferred communities.
(2) Selection.--The Secretary concerned shall select a
grant recipient under paragraph (1) after giving
consideration to the anticipated public benefits of the
project, including the potential to develop thermal or
electric energy resources or affordable energy, opportunities
for the creation or expansion of small businesses and micro-
businesses, and the potential for new job creation.
(3) Grant amount.--A grant under this subsection may not
exceed $500,000.
(e) Authorization of Appropriations.--There are authorized
to be appropriated $50,000,000 for each of the fiscal years
2006 through 2016 to carry out this section.
(f) Report.--Not later than October 1, 2012, the Secretary
of Agriculture, in consultation with the Secretary of the
Interior, shall submit to the Committee on Energy and Natural
Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Resources, the
Committee on Energy and Commerce, and the Committee on
Agriculture of the House of Representatives a report
describing the results of the grant programs authorized by
this section. The report shall include the following:
(1) An identification of the size, type, and the use of
biomass by persons that receive grants under this section.
(2) The distance between the land from which the biomass
was removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations.

SEC. 207. BIOBASED PRODUCTS.

Section 9002(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by
inserting ``or such items that comply with the regulations
issued under section 103 of Public Law 100-556 (42 U.S.C.
6914b-1)'' after ``practicable''.

SEC. 208. RENEWABLE ENERGY SECURITY.

(a) Weatherization Assistance.--Section 415(c) of the
Energy Conservation and Production Act (42 U.S.C. 6865(c)) is
amended--
(1) in paragraph (1), by striking ``in paragraph (3)'' and
inserting ``in paragraphs (3) and (4)'';
(2) in paragraph (3), by striking ``$2,500 per dwelling
unit average provided in paragraph (1)'' and inserting
``dwelling unit averages provided in paragraphs (1) and
(4)''; and
(3) by adding at the end the following new paragraphs:
``(4) The expenditure of financial assistance provided
under this part for labor, weatherization materials, and
related matters for a renewable energy system shall not
exceed an average of $3,000 per dwelling unit.
``(5)(A) The Secretary shall by regulations--
``(i) establish the criteria which are to be used in
prescribing performance and quality standards under paragraph
(6)(A)(ii) or in specifying any form of renewable energy
under paragraph (6)(A)(i)(I); and
``(ii) establish a procedure under which a manufacturer of
an item may request the Secretary to certify that the item
will be treated, for purposes of this paragraph, as a
renewable energy system.
``(B) The Secretary shall make a final determination with
respect to any request filed under subparagraph (A)(ii)
within 1 year after the filing of the request, together with
any information required to be filed with such request under
subparagraph (A)(ii).
``(C) Each month the Secretary shall publish a report of
any request under subparagraph (A)(ii) which has been denied
during the preceding month and the reasons for the denial.
``(D) The Secretary shall not specify any form of renewable
energy under paragraph (6)(A)(i)(I) unless the Secretary
determines that--
``(i) there will be a reduction in oil or natural gas
consumption as a result of such specification;
``(ii) such specification will not result in an increased
use of any item which is known to be, or reasonably suspected
to be, environmentally hazardous or a threat to public health
or safety; and
``(iii) available Federal subsidies do not make such
specification unnecessary or inappropriate (in the light of
the most advantageous allocation of economic resources).
``(6) In this subsection--
``(A) the term `renewable energy system' means a system
which--
``(i) when installed in connection with a dwelling,
transmits or uses--
``(I) solar energy, energy derived from the geothermal
deposits, energy derived from biomass, or any other form of
renewable energy which the Secretary specifies by
regulations, for the purpose of heating or cooling such
dwelling or providing hot water or electricity for use within
such dwelling; or
``(II) wind energy for nonbusiness residential purposes;
``(ii) meets the performance and quality standards (if any)
which have been prescribed by the Secretary by regulations;
``(iii) in the case of a combustion rated system, has a
thermal efficiency rating of at least 75 percent; and
``(iv) in the case of a solar system, has a thermal
efficiency rating of at least 15 percent; and
``(B) the term `biomass' means any organic matter that is
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses,
residues, fibers, and animal wastes, municipal wastes, and
other waste materials.''.
(b) District Heating and Cooling Programs.--Section 172 of
the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is
amended--
(1) in subsection (a)--
(A) by striking ``and'' at the end of paragraph (3);
(B) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(5) evaluate the use of renewable energy systems (as such
term is defined in section 415(c) of the Energy Conservation
and Production Act (42 U.S.C. 6865(c))) in residential
buildings.''; and
(2) in subsection (b), by striking ``this Act'' and
inserting ``the Energy Policy Act of 2005''.
(c) Definition of Biomass.--Section 203(2) of the Biomass
Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 8802(2)) is
amended to read as follows:
``(2) The term `biomass' means any organic matter that is
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses,
residues, fibers, and animal wastes, municipal wastes, and
other waste materials.''.
(d) Rebate Program.--
(1) Establishment.--The Secretary of Energy shall establish
a program providing rebates for consumers for expenditures
made for the installation of a renewable energy system in
connection with a dwelling unit or small business.
(2) Amount of rebate.--Rebates provided under the program
established under paragraph (1) shall be in an amount not to
exceed the lesser of--
(A) 25 percent of the expenditures described in paragraph
(1) made by the consumer; or
(B) $3,000.
(3) Definition.--For purposes of this subsection, the term
``renewable energy system'' has the meaning given that term
in section 415(c)(6)(A) of the Energy Conservation and
Production Act (42 U.S.C. 6865(c)(6)(A)), as added by
subsection (a)(3) of this section.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this subsection, to remain available until expended--
(A) $150,000,000 for fiscal year 2006;
(B) $150,000,000 for fiscal year 2007;
(C) $200,000,000 for fiscal year 2008;
(D) $250,000,000 for fiscal year 2009; and
(E) $250,000,000 for fiscal year 2010.
(e) Renewable Fuel Inventory.--Not later than 180 days
after the date of enactment of this Act, the Secretary of
Energy shall transmit to Congress a report containing--
(1) an inventory of renewable fuels available for
consumers; and
(2) a projection of future inventories of renewable fuels
based on the incentives provided in this section

Subtitle C--Hydroelectric

PART I--ALTERNATIVE CONDITIONS

SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS.

(a) Federal Reservations.--Section 4(e) of the Federal
Power Act (16 U.S.C. 797(e)) is amended by inserting after
``adequate protection and utilization of such reservation.''
at the end of the first proviso the following: ``The license
applicant shall be entitled to a determination on the record,
after opportunity for an expedited agency trial-type hearing
of any disputed issues of material fact, with respect to such
conditions. Such hearing may be conducted in accordance with
procedures established by agency regulation in consultation
with the Federal Energy Regulatory Commission.''.
(b) Fishways.--Section 18 of the Federal Power Act (16
U.S.C. 811) is amended by inserting after ``and such fishways
as may be prescribed by the Secretary of Commerce.'' the
following: ``The license applicant shall be entitled to a
determination on the record, after opportunity for an
expedited agency trial-type hearing of any disputed issues of
material fact, with respect to such fishways. Such hearing
may be conducted in accordance with procedures established by
agency regulation in consultation with the Federal Energy
Regulatory Commission.''.
(c) Alternative Conditions and Prescriptions.--Part I of
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by
adding the following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

``(a) Alternative Conditions.--(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
(referred to in this subsection as `the Secretary') deems a
condition to such license to be necessary under the first
proviso of section 4(e), the license applicant may propose an
alternative condition.
``(2) Notwithstanding the first proviso of section 4(e),
the Secretary shall accept the proposed alternative condition
referred to in

[[Page H2224]]

paragraph (1), and the Commission shall include in the
license such alternative condition, if the Secretary
determines, based on substantial evidence provided by the
license applicant or otherwise available to the Secretary,
that such alternative condition--
``(A) provides for the adequate protection and utilization
of the reservation; 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 initially deemed necessary by
the Secretary.
``(3) The Secretary shall submit into the public record of
the Commission proceeding with any condition under section
4(e) or alternative condition it accepts under this section,
a written statement explaining the basis for such condition,
and reason for not accepting any alternative condition under
this section. The written statement must demonstrate that the
Secretary gave equal consideration to the effects of the
condition adopted and alternatives not accepted on energy
supply, distribution, cost, and use; flood control;
navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality);
based on such information as may be available to the
Secretary, including information voluntarily provided in a
timely manner by the applicant and others. The Secretary
shall also submit, together with the aforementioned written
statement, all studies, data, and other factual information
available to the Secretary and relevant to the Secretary's
decision.
``(4) Nothing in this section shall prohibit other
interested parties from proposing alternative conditions.
``(5) If the Secretary does not accept an applicant's
alternative condition under this section, and the Commission
finds that the Secretary's condition would be inconsistent
with the purposes of this part, or other applicable law, the
Commission may refer the dispute to the Commission's Dispute
Resolution Service. The Dispute Resolution Service shall
consult with the Secretary and the Commission and issue a
non-binding advisory within 90 days. The Secretary may accept
the Dispute Resolution Service advisory unless the Secretary
finds that the recommendation will not provide for the
adequate protection and utilization of the reservation. The
Secretary shall submit the advisory and the Secretary's final
written determination into the record of the Commission's
proceeding.
``(b) Alternative Prescriptions.--(1) Whenever the
Secretary of the Interior or the Secretary of Commerce
prescribes a fishway under section 18, the license applicant
or licensee may propose an alternative to such prescription
to construct, maintain, or operate a fishway.
``(2) Notwithstanding section 18, 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 licensee or otherwise
available to the Secretary, that such alternative--
``(A) will be no less protective 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 deemed necessary by the
Secretary.
``(3) The Secretary concerned shall submit into the public
record of the Commission proceeding with any prescription
under section 18 or alternative prescription it accepts under
this section, a written statement explaining the basis for
such prescription, and reason for not accepting any
alternative prescription under this section. The written
statement must demonstrate that the Secretary gave equal
consideration to the effects of the condition adopted and
alternatives not accepted on energy supply, distribution,
cost, and use; flood control; navigation; water supply; and
air quality (in addition to the preservation of other aspects
of environmental quality); based on such information as may
be available to the Secretary, including information
voluntarily provided in a timely manner by the applicant and
others. The Secretary shall also submit, together with the
aforementioned written statement, all studies, data, and
other factual information available to the Secretary and
relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other
interested parties from proposing alternative prescriptions.
``(5) If the Secretary concerned does not accept an
applicant's alternative prescription under this section, and
the Commission finds that the Secretary's prescription would
be inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the
Commission's Dispute Resolution Service. The Dispute
Resolution Service shall consult with the Secretary and the
Commission and issue a non-binding advisory within 90 days.
The Secretary may accept the Dispute Resolution Service
advisory unless the Secretary finds that the recommendation
will be less protective than the fishway initially prescribed
by the Secretary. The Secretary shall submit the advisory and
the Secretary's final written determination into the record
of the Commission's proceeding.''.

PART II--ADDITIONAL HYDROPOWER

SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES.

(a) Incentive Payments.--For electric energy generated and
sold by a qualified hydroelectric facility during the
incentive period, the Secretary of Energy (referred to in
this section as the ``Secretary'') shall make, subject to the
availability of appropriations, incentive payments to the
owner or operator of such facility. The amount of such
payment made to any such owner or operator shall be as
determined under subsection (e) of this section. Payments
under this section may only be made upon receipt by the
Secretary of an incentive payment application which
establishes that the applicant is eligible to receive such
payment and which satisfies such other requirements as the
Secretary deems necessary. Such application shall be in such
form, and shall be submitted at such time, as the Secretary
shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to
an existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which
was completed before the date of the enactment of this
section and which does not require any construction or
enlargement of impoundment or diversion structures (other
than repair or reconstruction) in connection with the
installation of a turbine or other generating device.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act (16
U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without
regard to the hydroelectric kilowatt capacity of the facility
concerned, without regard to whether the facility uses a dam
owned by a governmental or nongovernmental entity, and
without regard to whether the facility begins operation on or
after the date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this
section only for electric energy generated from a qualified
hydroelectric facility which begins operation during the
period of 10 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle.
(d) Incentive Period.--A qualified hydroelectric facility
may receive payments under this section for a period of 10
fiscal years (referred to in this section as the ``incentive
period''). Such period shall begin with the fiscal year in
which electric energy generated from the facility is first
eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the
incentive period. For any such facility, the amount of such
payment shall be 1.8 cents per kilowatt hour (adjusted as
provided in paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no facility
may receive more than $750,000 in 1 calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall
be adjusted for inflation for each fiscal year beginning
after calendar year 2005 in the same manner as provided in
the provisions of section 29(d)(2)(B) of the Internal Revenue
Code of 1986, except that in applying such provisions the
calendar year 2005 shall be substituted for calendar year
1979.
(f) Sunset.--No payment may be made under this section to
any qualified hydroelectric facility after the expiration of
the period of 20 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle, and no payment may be made under this section to
any such facility after a payment has been made with respect
to such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out the purposes
of this section $10,000,000 for each of the fiscal years 2006
through 2015.

SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

(a) Incentive Payments.--The Secretary of Energy shall make
incentive payments to the owners or operators of
hydroelectric facilities at existing dams to be used to make
capital improvements in the facilities that are directly
related to improving the efficiency of such facilities by at
least 3 percent.
(b) Limitations.--Incentive payments under this section
shall not exceed 10 percent of the costs of the capital
improvement concerned and not more than 1 payment may be made
with respect to improvements at a single facility. No payment
in excess of $750,000 may be made with respect to
improvements at a single facility.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section not more than
$10,000,000 for each of the fiscal years 2006 through 2015.

SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS.

Section 408(a)(6) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C.

[[Page H2225]]

2708(a)(6)) is amended by striking ``April 20, 1977'' and
inserting ``March 4, 2003''.

SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EXISTING
FEDERAL FACILITIES.

(a) In General.--The Secretary of the Interior and the
Secretary of Energy, in consultation with the Secretary of
the Army, shall jointly conduct a study of the potential for
increasing electric power production capability at federally
owned or operated water regulation, storage, and conveyance
facilities.
(b) Content.--The study under this section shall include
identification and description in detail of each facility
that is capable, with or without modification, of producing
additional hydroelectric power, including estimation of the
existing potential for the facility to generate hydroelectric
power.
(c) Report.--The Secretaries shall submit to the Committees
on Energy and Commerce, Resources, and Transportation and
Infrastructure of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report on the findings, conclusions, and recommendations of
the study under this section by not later than 18 months
after the date of the enactment of this Act. The report shall
include each of the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities currently conducted or
considered, or that could be considered, to produce
additional hydroelectric power from each identified facility.
(3) A summary of prior actions taken by the Secretaries to
produce additional hydroelectric power from each identified
facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility and the level of Federal power
customer involvement in the determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional energy or
capacity from each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric
power production by replacing turbine runners, by performing
generator upgrades or rewinds, or construction of pumped
storage facilities.
(7) The impact of increased hydroelectric power production
on irrigation, fish, wildlife, Indian tribes, river health,
water quality, navigation, recreation, fishing, and flood
control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs and
improve efficiency at, federally owned or operated water
regulation, storage, and conveyance facilities.

SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such
pumping during periods of peak electric power consumption,
including by performing as much of such pumping as possible
during off-peak hours at night.
(b) Consent of Affected Irrigation Customers Required.--The
Secretary may not under this section make any adjustment in
pumping at a facility without the consent of each person that
has contracted with the United States for delivery of water
from the facility for use for irrigation and that would be
affected by such adjustment.
(c) Existing Obligations not Affected.--This section shall
not be construed to affect any existing obligation of the
Secretary to provide electric power, water, or other benefits
from Bureau of Reclamation facilities, including recreational
releases.

TITLE III--OIL AND GAS--COMMERCE

Subtitle A--Petroleum Reserve and Home Heating Oil

SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC
PETROLEUM RESERVE AND OTHER ENERGY PROGRAMS.

(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
the following:

``Authorization of appropriations

``Sec. 166. There are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this
part and part D, to remain available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251; relating to the
expiration of title I of the Act).
(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 inserting before section 273 (42 U.S.C. 6283) the
following:

``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';

(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).
(c) Technical Amendments.--The table of contents for the
Energy Policy and Conservation Act is amended--
(1) by inserting after the items relating to part C of
title I the following:

``Part D--Northeast home heating oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';

(2) by amending the items relating to part C of title II to
read as follows:

``Part C--Summer fill and fuel budgeting programs

``Sec. 273. Summer fill and fuel budgeting programs.''

; and
(3) by striking the items relating to part D of title II.
(d) Amendment to the Energy Policy and Conservation Act.--
Section 183(b)(1) of the Energy Policy and Conservation Act
(42 U.S.C. 6250(b)(1)) is amended by striking all after
``increases'' through to ``mid-October through March'' and
inserting ``by more than 60 percent over its 5-year rolling
average for the months of mid-October through March
(considered as a heating season average)''.
(e) Fill Strategic Petroleum Reserve to Capacity.--The
Secretary of Energy shall, as expeditiously as practicable,
acquire petroleum in amounts sufficient to fill the Strategic
Petroleum Reserve to the 1,000,000,000 barrel capacity
authorized under section 154(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6234(a)), consistent with the
provisions of sections 159 and 160 of such Act (42 U.S.C.
6239, 6240).

SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

Section 713 of the Energy Act of 2000 (42 U.S.C. 6201 note)
is amended by striking ``4'' and inserting ``9''.

SEC. 303. SITE SELECTION.

Not later than 1 year after the date of enactment of this
Act, the Secretary of Energy shall complete a proceeding to
select, from sites that the Secretary has previously studied,
sites necessary to enable acquisition by the Secretary of the
full authorized volume of the Strategic Petroleum Reserve.

SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RESERVE
DELIVERIES.

The Secretary of Energy shall suspend deliveries of
royalty-in-kind oil to the Strategic Petroleum Reserve until
the price of oil falls below $40 per barrel for 2 consecutive
weeks on the New York Mercantile Exchange.

Subtitle B--Production Incentives

SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS TERMINALS.

(a) Scope of Natural Gas Act.--Section 1(b) of the Natural
Gas Act (15 U.S.C. 717(b)) is amended by inserting ``and to
the importation or exportation of natural gas in foreign
commerce and to persons engaged in such importation or
exportation,'' after ``such transportation or sale,''.
(b) Definition.--Section 2 of the Natural Gas Act (15
U.S.C. 717a) is amended by adding at the end the following
new paragraph:
``(11) `Liquefaction or gasification natural gas terminal'
includes all facilities located onshore or in State waters
that are used to receive, unload, load, store, transport,
gasify, liquefy, or process natural gas that is imported to
the United States from a foreign country, exported to a
foreign country from the United States, or transported in
interstate commerce by waterborne tanker, but does not
include--
``(A) waterborne tankers used to deliver natural gas to or
from any such facility; or
``(B) any pipeline or storage facility subject to the
jurisdiction of the Commission under section 7.''.
(c) Authorization for Construction, Expansion, or Operation
of Liquefaction or Gasification Natural Gas Terminals.--(1)
The title for section 3 of the Natural Gas Act (15 U.S.C.
717b) is amended by inserting ``; liquefaction or
gasification natural gas terminals'' after ``exportation or
importation of natural gas''.
(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is
amended by adding at the end the following:
``(d) Authorization for Construction, Expansion, or
Operation of Liquefaction or Gasification Natural Gas
Terminals.--
``(1) Commission authorization required.--No person shall
construct, expand, or operate a liquefaction or gasification
natural gas terminal without an order from the Commission
authorizing such person to do so.
``(2) Authorization procedures.--
``(A) Notice and hearing.--Upon the filing of any
application to construct, expand, or operate a liquefaction
or gasification natural gas terminal, the Commission shall--
``(i) set the matter for hearing;
``(ii) give reasonable notice of the hearing to all
interested persons, including the State commission of the
State in which the liquefaction or gasification natural gas
terminal is located;
``(iii) decide the matter in accordance with this
subsection; and
``(iv) issue or deny the appropriate order accordingly.
``(B) Designation as lead agency.--
``(i) In general.--The Commission shall act as the lead
agency for the purposes of coordinating all applicable
Federal authorizations and for the purposes of complying with
the National Environmental Policy Act of 1969 (42 U.S.C. 4312
et seq.) for a liquefaction or gasification natural gas
terminal.

[[Page H2226]]

``(ii) Other agencies.--Each Federal agency considering an
aspect of the construction, expansion, or operation of a
liquefaction or gasification natural gas terminal shall
cooperate with the Commission and comply with the deadlines
established by the Commission.
``(C) Schedule.--
``(i) Commission authority to set schedule.--The Commission
shall establish a schedule for all Federal and State
administrative proceedings required under authority of
Federal law to construct, expand, or operate a liquefaction
or gasification natural gas terminal. In establishing the
schedule, the Commission shall--

``(I) ensure expeditious completion of all such
proceedings; and
``(II) accommodate the applicable schedules established by
Federal law for such proceedings.

``(ii) Failure to meet schedule.--If a Federal or State
administrative agency does not complete a proceeding for an
approval that is required before a person may construct,
expand, or operate the liquefaction or gasification natural
gas terminal, in accordance with the schedule established by
the Commission under this subparagraph, and if--

``(I) a determination has been made by the Court pursuant
to section 19(d) that such delay is unreasonable; and
``(II) the agency has failed to act on any remand by the
Court within the deadline set by the Court,

that approval may be conclusively presumed by the Commission.
``(D) Exclusive record.--The Commission shall, with the
cooperation of Federal and State administrative agencies and
officials, maintain a complete consolidated record of all
decisions made or actions taken by the Commission or by a
Federal administrative agency or officer (or State
administrative agency or officer acting under delegated
Federal authority) with respect to the construction,
expansion, or operation of a liquefaction or gasification
natural gas terminal. Such record shall be the exclusive
record for any Federal administrative proceeding that is an
appeal or review of any such decision made or action taken.
``(E) State and local safety considerations.--
``(i) In general.--The Commission shall consult with the
State commission of the State in which the liquefaction or
gasification natural gas terminal is located regarding State
and local safety considerations prior to issuing an order
pursuant to this subsection and consistent with the schedule
established under subparagraph (C).
``(ii) State safety inspections.--The State commission of
the State in which a liquefaction or gasification natural gas
terminal is located may, after the terminal is operational,
conduct safety inspections with respect to the liquefaction
or gasification natural gas terminal if--

``(I) the State commission provides written notice to the
Commission of its intention to do so; and
``(II) the inspections will be carried out in conformance
with Federal regulations and guidelines.

Enforcement of any safety violation discovered by a State
commission pursuant to this clause shall be carried out by
Federal officials. The Commission shall take appropriate
action in response to a report of a violation not later that
90 days after receiving such report.
``(iii) State and local safety considerations.--For the
purposes of this subparagraph, State and local safety
considerations include--

``(I) the kind and use of the facility;
``(II) the existing and projected population and
demographic characteristics of the location;
``(III) the existing and proposed land use near the
location;
``(IV) the natural and physical aspects of the location;
``(V) the medical, law enforcement, and fire prevention
capabilities near the location that can respond at the
facility; and
``(VI) the feasibility of remote siting.

``(F) Limitation.--Subparagraph (C)(ii) shall not apply to
any approval required to protect navigation, maritime safety,
or maritime security.
``(3) Issuance of commission order.--
``(A) In general.--The Commission shall issue an order
authorizing, in whole or in part, the construction,
expansion, or operation covered by the application to any
qualified applicant--
``(i) unless the Commission finds such actions or
operations will not be consistent with the public interest;
and
``(ii) if the Commission has found that the applicant is--

``(I) able and willing to carry out the actions and
operations proposed; and
``(II) willing to conform to the provisions of this Act and
any requirements, rules, and regulations of the Commission
set forth under this Act.

``(B) Terms and conditions.--The Commission may by its
order grant an application, in whole or in part, with such
modification and upon such terms and conditions as the
Commission may find necessary or appropriate.
``(C) Limitations on terms and conditions to commission
order.--
``(i) In general.--Any Commission order issued pursuant to
this subsection before January 1, 2011, shall not be
conditioned on--

``(I) a requirement that the liquefaction or gasification
natural gas terminal offer service to persons other than the
person, or any affiliate thereof, securing the order; or
``(II) any regulation of the liquefaction or gasification
natural gas terminal's rates, charges, terms, or conditions
of service.

``(ii) Inapplicable to terminal exit pipeline.--Clause (i)
shall not apply to any pipeline subject to the jurisdiction
of the Commission under section 7 exiting a liquefaction or
gasification natural gas terminal.
``(iii) Expansion of regulated terminal.--An order issued
under this paragraph that relates to an expansion of an
existing liquefaction or gasification natural gas terminal,
where any portion of the existing terminal continues to be
subject to Commission regulation of rates, charges, terms, or
conditions of service, may not result in--

``(I) subsidization of the expansion by regulated terminal
users;
``(II) degradation of service to the regulated terminal
users; or
``(III) undue discrimination against the regulated terminal
users.

``(iv) Expiration.--This subparagraph shall cease to have
effect on January 1, 2021.
``(4) Definition.--For the purposes of this subsection, the
term `Federal authorization' means any authorization required
under Federal law in order to construct, expand, or operate a
liquefaction or gasification natural gas terminal, including
such permits, special use authorizations, certifications,
opinions, or other approvals as may be required, whether
issued by a Federal or State agency.''.
(d) Judicial Review.--Section 19 of the Natural Gas Act (15
U.S.C. 717r) is amended by adding at the end the following:
``(d) Judicial Review.--
``(1) In general.--The United States Court of Appeals for
the District of Columbia Circuit shall have original and
exclusive jurisdiction over any civil action--
``(A) for review of any order, action, or failure to act of
any Federal or State administrative agency to issue,
condition, or deny any permit, license, concurrence, or
approval required under Federal law for the construction,
expansion, or operation of a liquefaction or gasification
natural gas terminal;
``(B) alleging unreasonable delay, in meeting a schedule
established under section 3(d)(2)(C) or otherwise, by any
Federal or State administrative agency in entering an order
or taking other action described in subparagraph (A); or
``(C) challenging any decision made or action taken by the
Commission under section 3(d).
``(2) Commission action.--For any action described in this
subsection, the Commission shall file with the Court the
consolidated record maintained under section 3(d)(2)(D).
``(3) Court action.--If the Court finds under paragraph
(1)(A) or (B) that an order, action, failure to act, or delay
is inconsistent with applicable Federal law, and would
prevent the construction, expansion, or operation of a
liquefaction or gasification natural gas terminal, the order
or action shall be deemed to have been issued or taken,
subject to any conditions established by the Federal or State
administrative agency upon remand from the Court, such
conditions to be consistent with the order of the Court. If
the Court remands the order or action to the Federal or State
agency, the Court shall set a reasonable deadline for the
agency to act on remand.
``(4) Unreasonable delay.--For the purposes of paragraph
(1)(B), the failure of an agency to issue a permit, license,
concurrence, or approval within the later of--
``(A) 1 year after the date of filing of an application for
the permit, license, concurrence, or approval; or
``(B) 60 days after the date of issuance of the order under
section 3(d),
shall be considered unreasonable delay unless the Court, for
good cause shown, determines otherwise.
``(5) Expedited review.--The Court shall set any action
brought under this subsection for expedited consideration.''.

SEC. 327. HYDRAULIC FRACTURING.

Paragraph (1) of section 1421(d) of the Safe Drinking Water
Act (42 U.S.C. 300h(d)) is amended to read as follows:
``(1) Underground injection.--The term `underground
injection'--
``(A) means the subsurface emplacement of fluids by well
injection; and
``(B) excludes--
``(i) the underground injection of natural gas for purposes
of storage; and
``(ii) the underground injection of fluids or propping
agents pursuant to hydraulic fracturing operations related to
oil or gas production activities.''.

SEC. 328. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

Section 502 of the Federal Water Pollution Control Act (33
U.S.C. 1362) is amended by adding at the end the following:
``(24) Oil and gas exploration and production.--The term
`oil and gas exploration, production, processing, or
treatment operations or transmission facilities' means all
field activities or operations associated with exploration,
production, processing, or treatment operations, or
transmission facilities, including activities necessary to
prepare a site for drilling and for the movement and
placement of drilling equipment, whether or not such field
activities or operations may be considered to be construction
activities.''.

[[Page H2227]]

SEC. 329. OUTER CONTINENTAL SHELF PROVISIONS.

(a) Storage on the Outer Continental Shelf.--Section
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C.
1334(a)(5)) is amended by inserting ``from any source'' after
``oil and gas''.
(b) Deepwater Projects.--Section 6 of the Deepwater Port
Act of 1974 (33 U.S.C. 1505) is amended by adding at the end
the following:
``(d) Reliance on Activities of Other Agencies.--In
fulfilling the requirements of section 5(f)--
``(1) to the extent that other Federal agencies have
prepared environmental impact statements, are conducting
studies, or are monitoring the affected human, marine, or
coastal environment, the Secretary may use the information
derived from those activities in lieu of directly conducting
such activities; and
``(2) the Secretary may use information obtained from any
State or local government or from any person.''.
(c) Natural Gas Defined.--Section 3(13) of the Deepwater
Port Act of 1974 (33 U.S.C. 1502(13)) is amended to read as
follows:
``(13) natural gas means--
``(A) natural gas unmixed; or
``(B) any mixture of natural or artificial gas, including
compressed or liquefied natural gas, natural gas liquids,
liquefied petroleum gas, and condensate recovered from
natural gas;''.

SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION OR
OFFSHORE MINERAL DEVELOPMENT PROJECTS.

(a) Agency of Record, Pipeline Construction Projects.--Any
Federal administrative agency proceeding that is an appeal or
review under section 319 of the Coastal Zone Management Act
of 1972 (16 U.S.C. 1465), as amended by this Act, related to
Federal authority for an interstate natural gas pipeline
construction project, including construction of natural gas
storage and liquefied natural gas facilities, shall use as
its exclusive record for all purposes the record compiled by
the Federal Energy Regulatory Commission pursuant to the
Commission's proceeding under sections 3 and 7 of the Natural
Gas Act (15 U.S.C. 717b, 717f).
(b) Sense of Congress.--It is the sense of Congress that
all Federal and State agencies with jurisdiction over
interstate natural gas pipeline construction activities
should coordinate their proceedings within the timeframes
established by the Federal Energy Regulatory Commission when
the Commission is acting under sections 3 and 7 of the
Natural Gas Act (15 U.S.C. 717b, 717f) to determine whether a
certificate of public convenience and necessity should be
issued for a proposed interstate natural gas pipeline.
(c) Agency of Record, Offshore Mineral Development
Projects.--Any Federal administrative agency proceeding that
is an appeal or review under section 319 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1465), as amended by this
Act, related to Federal authority for the permitting,
approval, or other authorization of energy projects,
including projects to explore, develop, or produce mineral
resources in or underlying the outer Continental Shelf shall
use as its exclusive record for all purposes (except for the
filing of pleadings) the record compiled by the relevant
Federal permitting agency.

SEC. 333. NATURAL GAS MARKET TRANSPARENCY.

The Natural Gas Act (15 U.S.C 717 et seq.) is amended--
(1) by redesignating section 24 as section 25; and
(2) by inserting after section 23 the following:

``SEC. 24. NATURAL GAS MARKET TRANSPARENCY.

``(a) Authorization.--(1) Not later than 180 days after the
date of enactment of the Energy Policy Act of 2005, the
Federal Energy Regulatory Commission shall issue rules
directing all entities subject to the Commission's
jurisdiction as provided under this Act to timely report
information about the availability and prices of natural gas
sold at wholesale in interstate commerce to the Commission
and price publishers.
``(2) The Commission shall evaluate the data for adequate
price transparency and accuracy.
``(3) Rules issued under this subsection requiring the
reporting of information to the Commission that may become
publicly available shall be limited to aggregate data and
transaction-specific data that are otherwise required by the
Commission to be made public.
``(4) In exercising its authority under this section, the
Commission shall not--
``(A) compete with, or displace from the market place, any
price publisher; or
``(B) regulate price publishers or impose any requirements
on the publication of information.
``(b) Timely Enforcement.--No person shall be subject to
any penalty under this section with respect to a violation
occurring more than 3 years before the date on which the
Federal Energy Regulatory Commission seeks to assess a
penalty.
``(c) Limitation on Commission Authority.--(1) The
Commission shall not condition access to interstate pipeline
transportation upon the reporting requirements authorized
under this section.
``(2) Natural gas sales by a producer that are attributable
to volumes of natural gas produced by such producer shall not
be subject to the rules issued pursuant to this section.
``(3) The Commission shall not require natural gas
producers, processors, or users who have a de minimis market
presence to participate in the reporting requirements
provided in this section.''.

Subtitle C--Access to Federal Land

SEC. 344. CONSULTATION REGARDING OIL AND GAS LEASING ON
PUBLIC LAND.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall enter into a memorandum of
understanding regarding oil and gas leasing on--
(1) public lands under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System lands under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall
include provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of oil and gas lease
applications, surface use plans of operation, and
applications for permits to drill, including steps for
processing surface use plans and applications for permits to
drill consistent with the timelines established by the
amendment made by section 348;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance
efforts; and
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied.
(c) Data Retrieval System.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall establish a joint data
retrieval system that is capable of--
(A) tracking applications and formal requests made in
accordance with procedures of the Federal onshore oil and gas
leasing program; and
(B) providing information regarding the status of the
applications and requests within the Department of the
Interior and the Department of Agriculture.
(2) Resource mapping.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall establish a joint
Geographic Information System mapping system for use in--
(A) tracking surface resource values to aid in resource
management; and
(B) processing surface use plans of operation and
applications for permits to drill.

SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS
CONCERNING REGULATIONS THAT SIGNIFICANTLY
AFFECT ENERGY SUPPLY, DISTRIBUTION, OR USE.

(a) Requirement.--The head of each Federal agency shall
require that before the Federal agency takes any action that
could have a significant adverse effect on the supply of
domestic energy resources from Federal public land, the
Federal agency taking the action shall comply with Executive
Order No. 13211 (42 U.S.C. 13201 note).
(b) Guidance.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall publish
guidance for purposes of this section describing what
constitutes a significant adverse effect on the supply of
domestic energy resources under Executive Order No. 13211 (42
U.S.C. 13201 note).
(c) Memorandum of Understanding.--The Secretary of the
Interior and the Secretary of Agriculture shall include in
the memorandum of understanding under section 344 provisions
for implementing subsection (a) of this section.

SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS DRILLING BAN.

Congress encourages no Federal or State permit or lease to
be issued for new oil and gas slant, directional, or offshore
drilling in or under one or more of the Great Lakes.

SEC. 358. FEDERAL COALBED METHANE REGULATION.

Any State currently on the list of Affected States
established under section 1339(b) of the Energy Policy Act of
1992 (42 U.S.C. 13368(b)) shall be removed from the list if,
not later than 3 years after the date of enactment of this
Act, the State takes, or prior to the date of enactment has
taken, any of the actions required for removal from the list
under such section 1339(b).

Subtitle D--Refining Revitalization

SEC. 371. SHORT TITLE.

This subtitle may be cited as the ``United States Refinery
Revitalization Act of 2005''.

SEC. 372. FINDINGS.

Congress finds the following:
(1) It serves the national interest to increase petroleum
refining capacity for gasoline, heating oil, diesel fuel, jet
fuel, kerosene, and petrochemical feedstocks wherever located
within the United States, to bring more supply to the markets
for use by the American people. Nearly 50 percent of the
petroleum in the United States is used for the production of
gasoline. Refined petroleum products have a significant
impact on interstate commerce.
(2) United States demand for refined petroleum products
currently exceeds the country's petroleum refining capacity
to produce such products. By 2025, United States gasoline
consumption is projected to rise from 8,900,000 barrels per
day to 12,900,000 barrels

[[Page H2228]]

per day. Diesel fuel and home heating oil are becoming larger
components of an increasing demand for refined petroleum
supply. With the increase in air travel, jet fuel consumption
is projected to be 789,000 barrels per day higher in 2025
than today.
(3) The petroleum refining industry is operating at 95
percent of capacity. The United States is currently importing
5 percent of its refined petroleum products and because of
the stringent United States gasoline and diesel fuel
specifications, few foreign refiners can produce the clean
fuels required in the United States and the number of foreign
suppliers that can produce United States quality gasoline is
decreasing.
(4) Refiners are subject to significant environmental and
other regulations and face several new Clean Air Act
requirements over the next decade. New Clean Air Act
requirements will benefit the environment but will also
require substantial capital investment and additional
government permits.
(5) No new refinery has been built in the United States
since 1976 and many smaller domestic refineries have become
idle since the removal of the Domestic Crude Oil Allocation
Program and because of regulatory uncertainty and generally
low returns on capital employed. Today, the United States has
149 refineries, down from 324 in 1981. Restoration of
recently idled refineries alone would amount to 483,570
barrels a day in additional capacity, or approximately 3.3
percent of the total operating capacity.
(6) Refiners have met growing demand by increasing the use
of existing equipment and increasing the efficiency and
capacity of existing plants. But refining capacity has begun
to lag behind peak summer demand.
(7) Heavy industry and manufacturing jobs have closed or
relocated due to barriers to investment, burdensome
regulation, and high costs of operation, among other reasons.
(8) Because the production and disruption in supply of
refined petroleum products has a significant impact on
interstate commerce, it serves the national interest to
increase the domestic refining operating capacity.
(10) More regulatory certainty for refinery owners is
needed to stimulate investment in increased refinery capacity
and required procedures for Federal, State, and local
regulatory approvals need to be streamlined to ensure that
increased refinery capacity can be developed and operated in
a safe, timely, and cost-effective manner.
(11) The proposed Yuma Arizona Refinery, a grassroots
refinery facility, which only recently received its Federal
air quality permit after 5 years under the current regulatory
process, and is just now beginning its environmental impact
statement and local permitting process, serves as an example
of the obstacles a refiner would have to overcome to reopen
an idle refinery.

SEC. 373. PURPOSE.

The purpose of this subtitle is to encourage the expansion
of the United States refining capacity by providing an
accelerated review and approval process of all regulatory
approvals for certain idle refineries and lending
corresponding legal and technical assistance to States with
resources that may be inadequate to meet such permit review
demands.

SEC. 374. DESIGNATION OF REFINERY REVITALIZATION ZONES.

Not later than 90 days after the date of enactment of this
Act, the Secretary shall designate as a Refinery
Revitalization Zone any area--
(1) that--
(A) has experienced mass layoffs at manufacturing
facilities, as determined by the Secretary of Labor; or
(B) contains an idle refinery; and
(2) that has an unemployment rate that exceeds the national
average by at least 10 percent of the national average, as
set by the Department of Labor, Bureau of Labor Statistics,
at the time of the designation as a Refinery Revitalization
Zone.

SEC. 375. MEMORANDUM OF UNDERSTANDING.

(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding with the Administrator for the
purposes of this subtitle. The Secretary and the
Administrator shall each designate a senior official
responsible for, and dedicate sufficient other staff and
resources to ensure, full implementation of the purposes of
this subtitle and any regulations enacted pursuant to this
subtitle.
(b) Additional Signatories.--The Governor of any State, and
the appropriate representative of any Indian Tribe, with
jurisdiction over a Refinery Revitalization Zone, as
designated by the Secretary pursuant to section 374, may be
signatories to the memorandum of understanding under this
section.

SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSISTANCE.

Not later than 30 days after a Revitalization Program
Qualifying State becomes a signatory to the memorandum of
understanding under section 375(b)--
(1) the Secretary shall designate one or more employees of
the Department with expertise relating to the siting and
operation of refineries to provide legal and technical
assistance to that Revitalization Program Qualifying State;
and
(2) the Administrator shall designate, to provide legal and
technical assistance for that Revitalization Program
Qualifying State, one or more employees of the Environmental
Protection Agency with expertise on regulatory issues,
relating to the siting and operation of refineries, with
respect to each of--
(A) the Clean Air Act (42 U.S.C. 7401 et seq.);
(B) the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.);
(C) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
(D) the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601 et seq.);
(E) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.);
(F) the Toxic Substances Control Act (15 U.S.C. 2601 et
seq.);
(G) the National Historic Preservation Act (16 U.S.C. 470
et seq.); and
(H) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).

SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF PERMITTING
PROCESS.

(a) Department of Energy as Lead Agency.--Upon written
request of a prospective applicant for Federal authorization
for a refinery facility in a Refinery Revitalization Zone,
the Department shall act as the lead Federal agency for the
purposes of coordinating all applicable Federal
authorizations and environmental reviews of the refining
facility. To the maximum extent practicable under applicable
Federal law, the Secretary shall coordinate this Federal
authorization and review process with any Indian Tribes and
State and local agencies responsible for conducting any
separate permitting and environmental reviews of the refining
facility.
(b) Schedule.--
(1) In general.--The Secretary, in coordination with the
agencies with authority over Federal authorizations and, as
appropriate, with Indian Tribes and State and local agencies
that are willing to coordinate their separate permitting and
environmental reviews with the Federal authorizations and
environmental reviews, shall establish a schedule with prompt
and binding intermediate and ultimate deadlines for the
review of, and Federal authorization decisions relating to,
refinery facility siting and operation.
(2) Preapplication process.--Prior to establishing the
schedule, the Secretary shall provide an expeditious
preapplication mechanism for applicants to confer with the
agencies involved and to have each agency communicate to the
prospective applicant within 60 days concerning--
(A) the likelihood of approval for a potential refinery
facility; and
(B) key issues of concern to the agencies and local
community.
(3) Schedule.--The Secretary shall consider the
preapplication findings under paragraph (2) in setting the
schedule and shall ensure that once an application has been
submitted with such information as the Secretary considers
necessary, all permit decisions and related environmental
reviews under all applicable Federal laws shall be completed
within 6 months or, where circumstances require otherwise, as
soon as thereafter practicable.
(c) Consolidated Environmental Review.--
(1) Lead agency.--In carrying out its role as the lead
Federal agency for environmental review, the Department shall
coordinate all applicable Federal actions for complying with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) and shall be responsible for preparing any
environmental impact statement required by section 102(2)(C)
of that Act (42 U.S.C. 4332(2)(C)) or such other form of
environmental review as is required.
(2) Consolidation of statements.--In carrying out paragraph
(1), if the Department determines an environmental impact
statement is required, the Department shall prepare a single
environmental impact statement, which shall consolidate the
environmental reviews of all Federal agencies considering any
aspect of the project covered by the environmental impact
statement.
(d) Other Agencies.--Each Federal agency considering an
aspect of the siting or operation of a refinery facility in a
Refinery Revitalization Zone shall cooperate with the
Department and comply with the deadlines established by the
Department in the preparation of any environmental impact
statement or such other form of review as is required.
(e) Exclusive Record.--The Department shall, with the
cooperation of Federal and State administrative agencies and
officials, maintain a complete consolidated record of all
decisions made or actions taken by the Department or by a
Federal administrative agency or officer (or State
administrative agency or officer acting under delegated
Federal authority) with respect to the siting or operation of
a refinery facility in a Refinery Revitalization Zone. Such
record shall be the exclusive record for any Federal
administrative proceeding that is an appeal or review of any
such decision made or action taken.
(f) Appeals.--In the event any agency has denied a Federal
authorization required for a refinery facility in a Refinery
Revitalization Zone, or has failed to act by a deadline
established by the Secretary pursuant to subsection (b) for
deciding whether to issue the Federal authorization, the
applicant or any State in which the refinery facility would
be located may file an appeal with the Secretary. Based on
the record maintained under subsection (e), and in
consultation with the affected agency, the Secretary may then
either issue the necessary Federal authorization with
appropriate conditions, or deny the appeal. The Secretary
shall issue a decision within 60 days after the filing of the

[[Page H2229]]

appeal. In making a decision under this subsection, the
Secretary shall comply with applicable requirements of
Federal law, including each of the laws referred to in
section 376(2)(A) through (H). Any judicial appeal of the
Secretary's decision shall be to the United States Court of
Appeals for the District of Columbia.
(g) Conforming Regulations.--Not later than 6 months after
the date of enactment of this Act, the Secretary shall issue
any regulations necessary to implement this subtitle.

SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGULATIONS
REQUIRED.

Nothing in this subtitle shall be construed to waive the
applicability of environmental laws and regulations to any
refinery facility.

SEC. 379. DEFINITIONS.

For the purposes of this subtitle, the term--
(1) ``Administrator'' means the Administrator of the
Environmental Protection Agency;
(2) ``Department'' means the Department of Energy;
(3) ``Federal authorization'' means any authorization
required under Federal law (including the Clean Air Act, the
Federal Water Pollution Control Act, the Safe Drinking Water
Act, the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, the Solid Waste Disposal Act, the
Toxic Substances Control Act, the National Historic
Preservation Act, and the National Environmental Policy Act
of 1969) in order to site, construct, upgrade, or operate a
refinery facility within a Refinery Revitalization Zone,
including such permits, special use authorizations,
certifications, opinions, or other approvals as may be
required, whether issued by a Federal, State, or local
agency;
(4) ``idle refinery'' means any real property site that has
been used at any time for a refinery facility since December
31, 1979, that has not been in operation after April 1, 2005;
(5) ``refinery facility'' means any facility designed and
operated to receive, unload, store, process and refine raw
crude oil by any chemical or physical process, including
distillation, fluid catalytic cracking, hydrocracking,
coking, alkylation, etherification, polymerization, catalytic
reforming, isomerization, hydrotreating, blending, and any
combination thereof;
(6) ``Revitalization Program Qualifying State'' means a
State or Indian Tribe that--
(A) has entered into the memorandum of understanding
pursuant to section 375(b); and
(B) has established a refining infrastructure coordination
office that the Secretary finds will facilitate Federal-State
cooperation for the purposes of this subtitle; and
(7) ``Secretary'' means the Secretary of Energy.

TITLE IV--COAL

Subtitle A--Clean Coal Power Initiative

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

(a) Clean Coal Power Initiative.--There are authorized to
be appropriated to the Secretary of Energy (referred to in
this title as the ``Secretary'') to carry out the activities
authorized by this subtitle $200,000,000 for each of fiscal
years 2006 through 2014, to remain available until expended.
(b) Report.--The Secretary shall submit to Congress the
report required by this subsection not later than March 31,
2007. The report shall include, with respect to subsection
(a), a 10-year plan containing--
(1) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate
funding levels for that program;
(2) a detailed description of how proposals will be
solicited and evaluated, including a list of all activities
expected to be undertaken;
(3) a detailed list of technical milestones for each coal
and related technology that will be pursued; and
(4) a detailed description of how the program will avoid
problems enumerated in General Accounting Office reports on
the Clean Coal Technology Program, including problems that
have resulted in unspent funds and projects that failed
either financially or scientifically.

SEC. 402. PROJECT CRITERIA.

(a) In General.--The Secretary shall not provide funding
under this subtitle for any project that does not advance
efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in commercial service or have been demonstrated on a
scale that the Secretary determines is sufficient to
demonstrate that commercial service is viable as of the date
of enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification projects.--
(A) In general.--In allocating the funds made available
under section 401(a), the Secretary shall ensure that at
least 60 percent of the funds are used only for projects on
coal-based gasification technologies, including gasification
combined cycle, gasification fuel cells, gasification
coproduction, and hybrid gasification/combustion.
(B) Technical milestones.--The Secretary shall periodically
set technical milestones specifying the emission and thermal
efficiency levels that coal gasification projects under this
subtitle shall be designed, and reasonably expected, to
achieve. The technical milestones shall become more
restrictive during the life of the program. The Secretary
shall set the periodic milestones so as to achieve by 2020
coal gasification projects able--
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit not more than .05 lbs of NOx per
million Btu;
(iii) to achieve substantial reductions in mercury
emissions; and
(iv) to achieve a thermal efficiency of--

(I) 60 percent for coal of more than 9,000 Btu;
(II) 59 percent for coal of 7,000 to 9,000 Btu; and
(III) 50 percent for coal of less than 7,000 Btu.

(2) Other projects.--The Secretary shall periodically set
technical milestones and ensure that up to 40 percent of the
funds appropriated pursuant to section 401(a) are used for
projects not described in paragraph (1). The milestones shall
specify the emission and thermal efficiency levels that
projects funded under this paragraph shall be designed to and
reasonably expected to achieve. The technical milestones
shall become more restrictive during the life of the program.
The Secretary shall set the periodic milestones so as to
achieve by 2010 projects able--
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx per
million Btu;
(C) to achieve substantial reductions in mercury emissions;
and
(D) to achieve a thermal efficiency of--
(i) 45 percent for coal of more than 9,000 Btu;
(ii) 44 percent for coal of 7,000 to 9,000 Btu; and
(iii) 40 percent for coal of less than 7,000 Btu.
(3) Consultation.--Before setting the technical milestones
under paragraphs (1)(B) and (2), the Secretary shall consult
with the Administrator of the Environmental Protection Agency
and interested entities, including coal producers, industries
using coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and organizations
representing workers.
(4) Existing units.--In the case of projects at units in
existence on the date of enactment of this Act, in lieu of
the thermal efficiency requirements set forth in paragraph
(1)(B)(iv) and (2)(D), the milestones shall be designed to
achieve an overall thermal design efficiency improvement,
compared to the efficiency of the unit as operated, of not
less than--
(A) 7 percent for coal of more than 9,000 Btu;
(B) 6 percent for coal of 7,000 to 9,000 Btu; or
(C) 4 percent for coal of less than 7,000 Btu.
(5) Permitted uses.--In carrying out this subtitle, the
Secretary may fund projects that include, as part of the
project, the separation and capture of carbon dioxide. The
thermal efficiency goals of paragraphs (1), (2), and (4)
shall not apply for projects that separate and capture at
least 50 percent of the facility's potential emissions of
carbon dioxide.
(c) Financial Criteria.--The Secretary shall not provide a
funding award under this subtitle unless the recipient
documents to the satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to
the Secretary to enable the Secretary to ensure that the
award funds are spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated
or applied, as evidenced by statements of interest in writing
from potential purchasers of the technology.
(d) Financial Assistance.--The Secretary shall provide
financial assistance to projects that meet the requirements
of subsections (a), (b), and (c) and are likely to--
(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy;
(2) improve the competitiveness of coal among various forms
of energy in order to maintain a diversity of fuel choices in
the United States to meet electricity generation
requirements; and
(3) demonstrate methods and equipment that are applicable
to 25 percent of the electricity generating facilities, using
various types of coal, that use coal as the primary feedstock
as of the date of enactment of this Act.
(e) Federal Share.--The Federal share of the cost of a coal
or related technology project funded by the Secretary under
this subtitle shall not exceed 50 percent.
(f) Applicability.--No technology, or level of emission
reduction, shall be treated as adequately demonstrated for
purposes of section 111 of the Clean Air Act (42 U.S.C.
7411), achievable for purposes of section 169 of that Act (42
U.S.C. 7479), or achievable in practice for purposes of
section 171 of that Act (42 U.S.C. 7501) solely by reason of
the use of such technology, or the achievement of such
emission reduction, by 1 or more facilities receiving
assistance under this subtitle.

SEC. 403. REPORT.

Not later than 1 year after the date of enactment of this
Act, and once every 2 years thereafter through 2014, the
Secretary, in consultation with other appropriate Federal
agencies, shall submit to Congress a report describing--
(1) the technical milestones set forth in section 402 and
how those milestones ensure progress toward meeting the
requirements of subsections (b)(1)(B) and (b)(2) of section
402; and

[[Page H2230]]

(2) the status of projects funded under this subtitle.

SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

As part of the program authorized in section 401, the
Secretary shall award competitive, merit-based grants to
universities for the establishment of Centers of Excellence
for Energy Systems of the Future. The Secretary shall provide
grants to universities that show the greatest potential for
advancing new clean coal technologies.

Subtitle B--Clean Power Projects

SEC. 411. COAL TECHNOLOGY LOAN.

There are authorized to be appropriated to the Secretary
$125,000,000 to provide a loan to the owner of the
experimental plant constructed under United States Department
of Energy cooperative agreement number DE-FC-22-91PC90544 on
such terms and conditions as the Secretary determines,
including interest rates and upfront payments.

SEC. 412. COAL GASIFICATION.

The Secretary is authorized to provide loan guarantees for
a project to produce energy from a plant using integrated
gasification combined cycle technology of at least 400
megawatts in capacity that produces power at competitive
rates in deregulated energy generation markets and that does
not receive any subsidy (direct or indirect) from ratepayers.

SEC. 414. PETROLEUM COKE GASIFICATION.

The Secretary is authorized to provide loan guarantees for
at least 5 petroleum coke gasification projects.

SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.

The Secretary shall use $5,000,000 from amounts
appropriated to initiate, through the Chicago Operations
Office, a project to demonstrate the viability of high-energy
electron scrubbing technology on commercial-scale electrical
generation using high-sulfur coal.

Subtitle D--Coal and Related Programs

SEC. 441. CLEAN AIR COAL PROGRAM.

(a) Amendment.--The Energy Policy Act of 1992 is amended by
adding the following new title at the end thereof:

``TITLE XXXI--CLEAN AIR COAL PROGRAM

``SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.

``(a) Findings.--The Congress finds that--
``(1) new environmental regulations present additional
challenges for coal-fired electrical generation in the
private marketplace; and
``(2) the Department of Energy, in cooperation with
industry, has already fully developed and commercialized
several new clean-coal technologies that will allow the clean
use of coal.
``(b) Purposes.--The purposes of this title are to--
``(1) promote national energy policy and energy security,
diversity, and economic competitiveness benefits that result
from the increased use of coal;
``(2) mitigate financial risks, reduce the cost, and
increase the marketplace acceptance of the new clean coal
technologies; and
``(3) advance the deployment of pollution control equipment
to meet the current and future obligations of coal-fired
generation units regulated under the Clean Air Act (42 U.S.C.
7402 and following).

``SEC. 3102. AUTHORIZATION OF PROGRAM.

``The Secretary shall carry out a program to facilitate
production and generation of coal-based power and the
installation of pollution control equipment.

``SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.

``(a) Pollution Control Projects.--There are authorized to
be appropriated to the Secretary $300,000,000 for fiscal year
2006, $100,000,000 for fiscal year 2007, $40,000,000 for
fiscal year 2008, $30,000,000 for fiscal year 2009, and
$30,000,000 for fiscal year 2010, to remain available until
expended, for carrying out the program for pollution control
projects, which may include--
``(1) pollution control equipment and processes for the
control of mercury air emissions;
``(2) pollution control equipment and processes for the
control of nitrogen dioxide air emissions or sulfur dioxide
emissions;
``(3) pollution control equipment and processes for the
mitigation or collection of more than one pollutant;
``(4) advanced combustion technology for the control of at
least two pollutants, including mercury, particulate matter,
nitrogen oxides, and sulfur dioxide, which may also be
designed to improve the energy efficiency of the unit; and
``(5) advanced pollution control equipment and processes
designed to allow use of the waste byproducts or other
byproducts of the equipment or an electrical generation unit
designed to allow the use of byproducts.

Funds appropriated under this subsection which are not
awarded before fiscal year 2012 may be applied to projects
under subsection (b), in addition to amounts authorized under
subsection (b).
``(b) Generation Projects.--There are authorized to be
appropriated to the Secretary $250,000,000 for fiscal year
2007, $350,000,000 for fiscal year 2008, $400,000,000 for
fiscal year 2009, $400,000,000 for fiscal year 2010,
$400,000,000 for fiscal year 2011, $400,000,000 for fiscal
year 2012, and $300,000,000 for fiscal year 2013, to remain
available until expended, for generation projects and air
pollution control projects. Such projects may include--
``(1) coal-based electrical generation equipment and
processes, including gasification combined cycle or other
coal-based generation equipment and processes;
``(2) associated environmental control equipment, that will
be cost-effective and that is designed to meet anticipated
regulatory requirements;
``(3) coal-based electrical generation equipment and
processes, including gasification fuel cells, gasification
coproduction, and hybrid gasification/combustion projects;
and
``(4) advanced coal-based electrical generation equipment
and processes, including oxidation combustion techniques,
ultra-supercritical boilers, and chemical looping, which the
Secretary determines will be cost-effective and could
substantially contribute to meeting anticipated environmental
or energy needs.
``(c) Limitation.--Funds placed at risk during any fiscal
year for Federal loans or loan guarantees pursuant to this
title may not exceed 30 percent of the total funds obligated
under this title.

``SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.

``The Secretary shall pursuant to authorizations contained
in section 3103 provide funding for air pollution control
projects designed to facilitate compliance with Federal and
State environmental regulations, including any regulation
that may be established with respect to mercury.

``SEC. 3105. CRITERIA FOR GENERATION PROJECTS.

``(a) Criteria.--The Secretary shall establish criteria on
which selection of individual projects described in section
3103(b) should be based. The Secretary may modify the
criteria as appropriate to reflect improvements in equipment,
except that the criteria shall not be modified to be less
stringent. These selection criteria shall include--
``(1) prioritization of projects whose installation is
likely to result in significant air quality improvements in
nonattainment air quality areas;
``(2) prioritization of projects that result in the
repowering or replacement of older, less efficient units;
``(3) documented broad interest in the procurement of the
equipment and utilization of the processes used in the
projects by electrical generator owners or operators;
``(4) equipment and processes beginning in 2006 through
2011 that are projected to achieve an thermal efficiency of--
``(A) 40 percent for coal of more than 9,000 Btu per pound
based on higher heating values;
``(B) 38 percent for coal of 7,000 to 9,000 Btu per pound
based on higher heating values; and
``(C) 36 percent for coal of less than 7,000 Btu per pound
based on higher heating values,
except that energy used for coproduction or cogeneration
shall not be counted in calculating the thermal efficiency
under this paragraph; and
``(5) equipment and processes beginning in 2012 and 2013
that are projected to achieve an thermal efficiency of--
``(A) 45 percent for coal of more than 9,000 Btu per pound
based on higher heating values;
``(B) 44 percent for coal of 7,000 to 9,000 Btu per pound
based on higher heating values; and
``(C) 40 percent for coal of less than 7,000 Btu per pound
based on higher heating values,
except that energy used for coproduction or cogeneration
shall not be counted in calculating the thermal efficiency
under this paragraph.
``(b) Selection.--(1) In selecting the projects, up to 25
percent of the projects selected may be either coproduction
or cogeneration or other gasification projects, but at least
25 percent of the projects shall be for the sole purpose of
electrical generation, and priority should be given to
equipment and projects less than 600 MW to foster and promote
standard designs.
``(2) The Secretary shall give priority to projects that
have been developed and demonstrated that are not yet cost
competitive, and for coal energy generation projects that
advance efficiency, environmental performance, or cost
competitiveness significantly beyond the level of pollution
control equipment that is in operation on a full scale.

``SEC. 3106. FINANCIAL CRITERIA.

``(a) In General.--The Secretary shall only provide
financial assistance to projects that meet the requirements
of sections 3103 and 3104 and are likely to--
``(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy; and
``(2) improve the competitiveness of coal in order to
maintain a diversity of domestic fuel choices in the United
States to meet electricity generation requirements.
``(b) Conditions.--The Secretary shall not provide a
funding award under this title unless--
``(1) the award recipient is financially viable without the
receipt of additional Federal funding; and
``(2) the recipient provides sufficient information to the
Secretary for the Secretary to ensure that the award funds
are spent efficiently and effectively.
``(c) Equal Access.--The Secretary shall, to the extent
practical, utilize cooperative agreement, loan guarantee, and
direct Federal loan mechanisms designed to ensure that all
electrical generation owners have

[[Page H2231]]

equal access to these technology deployment incentives. The
Secretary shall develop and direct a competitive solicitation
process for the selection of technologies and projects under
this title.

``SEC. 3107. FEDERAL SHARE.

``The Federal share of the cost of a coal or related
technology project funded by the Secretary under this title
shall not exceed 50 percent. For purposes of this title,
Federal funding includes only appropriated funds.

``SEC. 3108. APPLICABILITY.

``No technology, or level of emission reduction, shall be
treated as adequately demonstrated for purposes of section
111 of the Clean Air Act (42 U.S.C. 7411), achievable for
purposes of section 169 of the Clean Air Act (42 U.S.C.
7479), or achievable in practice for purposes of section 171
of the Clean Air Act (42 U.S.C. 7501) solely by reason of the
use of such technology, or the achievement of such emission
reduction, by one or more facilities receiving assistance
under this title.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy Act of 1992 is amended by adding at the end
the following:

``TITLE XXXI--CLEAN AIR COAL PROGRAM

``Sec. 3101. Findings; purposes; definitions.
``Sec. 3102. Authorization of program.
``Sec. 3103. Authorization of appropriations.
``Sec. 3104. Air pollution control project criteria.
``Sec. 3105. Criteria for generation projects.
``Sec. 3106. Financial criteria.
``Sec. 3107. Federal share.
``Sec. 3108. Applicability.''.

TITLE V--INDIAN ENERGY

SEC. 501. SHORT TITLE.

This title may be cited as the ``Indian Tribal Energy
Development and Self-Determination Act of 2005''.

SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

(a) In General.--Title II of the Department of Energy
Organization Act (42 U.S.C. 7131 et seq.) is amended by
adding at the end the following:

``Office of Indian Energy Policy and Programs

``Sec. 217.
``(a) Establishment.--There is established within the
Department an Office of Indian Energy Policy and Programs
(referred to in this section as the `Office'). The Office
shall be headed by a Director, who shall be appointed by the
Secretary and compensated at a rate equal to that of level IV
of the Executive Schedule under section 5315 of title 5,
United States Code.
``(b) Duties of Director.--The Director, in accordance with
Federal policies promoting Indian self-determination and the
purposes of this Act, shall provide, direct, foster,
coordinate, and implement energy planning, education,
management, conservation, and delivery programs of the
Department that--
``(1) promote Indian tribal energy development, efficiency,
and use;
``(2) reduce or stabilize energy costs;
``(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
``(4) bring electrical power and service to Indian land and
the homes of tribal members located on Indian lands or
acquired, constructed, or improved (in whole or in part) with
Federal funds.''.
(b) Conforming Amendments.--
(1) The table of contents of the Department of Energy
Organization Act (42 U.S.C. prec. 7101) is amended--
(A) in the item relating to section 209, by striking
``Section'' and inserting ``Sec.''; and
(B) by striking the items relating to sections 213 through
216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security
Administration.
``Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.

(2) Section 5315 of title 5, United States Code, is amended
by inserting after the item related to the Inspector General,
Department of Energy the following new item:
``Director, Office of Indian Energy Policy and Programs,
Department of Energy.''.

SEC. 503. INDIAN ENERGY.

(a) In General.--Title XXVI of the Energy Policy Act of
1992 (25 U.S.C. 3501 et seq.) is amended to read as follows:

``TITLE XXVI--INDIAN ENERGY RESOURCES

``SEC. 2601. DEFINITIONS.

``For purposes of this title:
``(1) The term `Director' means the Director of the Office
of Indian Energy Policy and Programs, Department of Energy.
``(2) The term `Indian land' means--
``(A) any land located within the boundaries of an Indian
reservation, pueblo, or rancheria; and
``(B) any land not located within the boundaries of an
Indian reservation, pueblo, or rancheria, the title to which
is held--
``(i) in trust by the United States for the benefit of an
Indian tribe or an individual Indian;
``(ii) by an Indian tribe or an individual Indian, subject
to restriction against alienation under laws of the United
States; or
``(iii) by a dependent Indian community.
``(3) The term `Indian reservation' includes--
``(A) an Indian reservation in existence in any State or
States as of the date of enactment of this paragraph;
``(B) a public domain Indian allotment; and
``(C) a dependent Indian community located within the
borders of the United States, regardless of whether the
community is located--
``(i) on original or acquired territory of the community;
or
``(ii) within or outside the boundaries of any particular
State.
``(4) The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b), except that the
term `Indian tribe', for the purpose of paragraph (11) and
sections 2603(b)(3) and 2604, shall not include any Native
Corporation.
``(5) The term `integration of energy resources' means any
project or activity that promotes the location and operation
of a facility (including any pipeline, gathering system,
transportation system or facility, or electric transmission
or distribution facility) on or near Indian land to process,
refine, generate electricity from, or otherwise develop
energy resources on, Indian land.
``(6) The term `Native Corporation' has the meaning given
the term in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602).
``(7) The term `organization' means a partnership, joint
venture, limited liability company, or other unincorporated
association or entity that is established to develop Indian
energy resources.
``(8) The term `Program' means the Indian energy resource
development program established under section 2602(a).
``(9) The term `Secretary' means the Secretary of the
Interior.
``(10) The term `tribal energy resource development
organization' means an organization of 2 or more entities, at
least 1 of which is an Indian tribe, that has the written
consent of the governing bodies of all Indian tribes
participating in the organization to apply for a grant, loan,
or other assistance authorized by section 2602.
``(11) The term `tribal land' means any land or interests
in land owned by any Indian tribe, title to which is held in
trust by the United States or which is subject to a
restriction against alienation under laws of the United
States.

``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

``(a) Department of the Interior Program.--
``(1) To assist Indian tribes in the development of energy
resources and further the goal of Indian self-determination,
the Secretary shall establish and implement an Indian energy
resource development program to assist consenting Indian
tribes and tribal energy resource development organizations
in achieving the purposes of this title.
``(2) In carrying out the Program, the Secretary shall--
``(A) provide development grants to Indian tribes and
tribal energy resource development organizations for use in
developing or obtaining the managerial and technical capacity
needed to develop energy resources on Indian land, and to
properly account for resulting energy production and
revenues;
``(B) provide grants to Indian tribes and tribal energy
resource development organizations for use in carrying out
projects to promote the integration of energy resources, and
to process, use, or develop those energy resources, on Indian
land; and
``(C) provide low-interest loans to Indian tribes and
tribal energy resource development organizations for use in
the promotion of energy resource development on Indian land
and integration of energy resources.
``(3) There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of fiscal
years 2006 through 2016.
``(b) Department of Energy Indian Energy Education Planning
and Management Assistance Program.--
``(1) The Director shall establish programs to assist
consenting Indian tribes in meeting energy education,
research and development, planning, and management needs.
``(2) In carrying out this subsection, the Director may
provide grants, on a competitive basis, to an Indian tribe or
tribal energy resource development organization for use in
carrying out--
``(A) energy, energy efficiency, and energy conservation
programs;
``(B) studies and other activities supporting tribal
acquisitions of energy supplies, services, and facilities;
``(C) planning, construction, development, operation,
maintenance, and improvement of tribal electrical generation,
transmission, and distribution facilities located on Indian
land; and
``(D) development, construction, and interconnection of
electric power transmission facilities located on Indian land
with other electric transmission facilities.
``(3)(A) The Director may develop, in consultation with
Indian tribes, a formula for providing grants under this
subsection.
``(B) In providing a grant under this subsection, the
Director shall give priority to an application received from
an Indian tribe with inadequate electric service (as
determined by the Director).

[[Page H2232]]

``(4) The Secretary of Energy may issue such regulations as
necessary to carry out this subsection.
``(5) There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of fiscal
years 2006 through 2016.
``(c) Department of Energy Loan Guarantee Program.--
``(1) Subject to paragraph (3), the Secretary of Energy may
provide loan guarantees (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for not
more than 90 percent of the unpaid principal and interest due
on any loan made to any Indian tribe for energy development.
``(2) A loan guarantee under this subsection shall be made
by--
``(A) a financial institution subject to examination by the
Secretary of Energy; or
``(B) an Indian tribe, from funds of the Indian tribe.
``(3) The aggregate outstanding amount guaranteed by the
Secretary of Energy at any time under this subsection shall
not exceed $2,000,000,000.
``(4) The Secretary of Energy may issue such regulations as
the Secretary of Energy determines are necessary to carry out
this subsection.
``(5) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain
available until expended.
``(6) Not later than 1 year from the date of enactment of
this section, the Secretary of Energy shall report to
Congress on the financing requirements of Indian tribes for
energy development on Indian land.
``(d) Federal Agencies-Indian Energy Preference.--
``(1) In purchasing electricity or any other energy product
or by-product, a Federal agency or department may give
preference to an energy and resource production enterprise,
partnership, consortium, corporation, or other type of
business organization the majority of the interest in which
is owned and controlled by 1 or more Indian tribes.
``(2) In carrying out this subsection, a Federal agency or
department shall not--
``(A) pay more than the prevailing market price for an
energy product or by-product; or
``(B) obtain less than prevailing market terms and
conditions.

``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

``(a) Grants.--The Secretary may provide to Indian tribes,
on an annual basis, grants for use in accordance with
subsection (b).
``(b) Use of Funds.--Funds from a grant provided under this
section may be used--
``(1) by an Indian tribe for the development of a tribal
energy resource inventory or tribal energy resource on Indian
land;
``(2) by an Indian tribe for the development of a
feasibility study or other report necessary to the
development of energy resources on Indian land;
``(3) by an Indian tribe (other than an Indian Tribe in
Alaska except the Metlakatla Indian Community) for the
development and enforcement of tribal laws (including
regulations) relating to tribal energy resource development
and the development of technical infrastructure to protect
the environment under applicable law;
``(4) by a Native Corporation for the development and
implementation of corporate policies and the development of
technical infrastructure related to energy development and
environmental protection under applicable law; and
``(5) by an Indian tribe for the training of employees
that--
``(A) are engaged in the development of energy resources on
Indian land; or
``(B) are responsible for protecting the environment.
``(c) Other Assistance.--In carrying out the obligations of
the United States under this title, the Secretary shall
ensure, to the maximum extent practicable and to the extent
of available resources, that upon the request of an Indian
tribe, the Indian tribe shall have available scientific and
technical information and expertise, for use in the Indian
tribe's regulation, development, and management of energy
resources on Indian land. The Secretary may fulfill this
responsibility either directly, through the use of Federal
officials, or indirectly, by providing financial assistance
to the Indian tribe to secure independent assistance.

``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY
INVOLVING ENERGY DEVELOPMENT OR TRANSMISSION.

``(a) Leases and Business Agreements.--Subject to the
provisions of this section--
``(1) an Indian tribe may, at its discretion, enter into a
lease or business agreement for the purpose of energy
resource development on tribal land, including a lease or
business agreement for--
``(A) exploration for, extraction of, processing of, or
other development of the Indian tribe's energy mineral
resources located on tribal land; and
``(B) construction or operation of an electric generation,
transmission, or distribution facility located on tribal land
or a facility to process or refine energy resources developed
on tribal land; and
``(2) such lease or business agreement described in
paragraph (1) shall not require the approval of the Secretary
under section 2103 of the Revised Statutes (25 U.S.C. 81) or
any other provision of law, if--
``(A) the lease or business agreement is executed pursuant
to a tribal energy resource agreement approved by the
Secretary under subsection (e);
``(B) the term of the lease or business agreement does not
exceed--
``(i) 30 years; or
``(ii) in the case of a lease for the production of oil
resources, gas resources, or both, 10 years and as long
thereafter as oil or gas is produced in paying quantities;
and
``(C) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including the periodic review and
evaluation of the activities of the Indian tribe under the
agreement, to be conducted pursuant to the provisions
required by subsection (e)(2)(D)(i)).
``(b) Rights-of-Way for Pipelines or Electric Transmission
or Distribution Lines.--An Indian tribe may grant a right-of-
way over tribal land for a pipeline or an electric
transmission or distribution line without approval by the
Secretary if--
``(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the Secretary
under subsection (e);
``(2) the term of the right-of-way does not exceed 30
years;
``(3) 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 energy resources developed on tribal land; and
``(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including the periodic review and
evaluation of the Indian tribe's activities under such
agreement described in subparagraphs (D) and (E) of
subsection (e)(2)).
``(c) Renewals.--A lease or business agreement entered into
or a right-of-way granted by an Indian tribe under this
section may be renewed at the discretion of the Indian tribe
in accordance with this section.
``(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources
pursuant to the provisions of this section shall be valid
unless the lease, business agreement, or right-of-way is
authorized by the provisions of a tribal energy resource
agreement approved by the Secretary under subsection (e)(2).
``(e) Tribal Energy Resource Agreements.--
``(1) On issuance of regulations under paragraph (8), an
Indian tribe may submit to the Secretary for approval a
tribal energy resource agreement governing leases, business
agreements, and rights-of-way under this section.
``(2)(A) Not later than 180 days after the date on which
the Secretary receives a tribal energy resource agreement
submitted by an Indian tribe under paragraph (1), or not
later than 60 days after the Secretary receives a revised
tribal energy resource agreement submitted by an Indian tribe
under paragraph (4)(C), (or such later date as may be agreed
to by the Secretary and the Indian tribe), the Secretary
shall approve or disapprove the tribal energy resource
agreement.
``(B) The Secretary shall approve a tribal energy resource
agreement submitted under paragraph (1) if--
``(i) the Secretary determines that the Indian tribe has
demonstrated that the Indian tribe has sufficient capacity to
regulate the development of energy resources of the Indian
tribe;
``(ii) the tribal energy resource agreement includes
provisions required under subparagraph (D); and
``(iii) the tribal energy resource agreement includes
provisions that, with respect to a lease, business agreement,
or right-of-way under this section--
``(I) ensure the acquisition of necessary information from
the applicant for the lease, business agreement, or right-of-
way;
``(II) address the term of the lease or business agreement
or the term of conveyance of the right-of-way;
``(III) address amendments and renewals;
``(IV) address the economic return to the Indian tribe
under leases, business agreements, and rights-of-way;
``(V) address technical or other relevant requirements;
``(VI) establish requirements for environmental review in
accordance with subparagraph (C);
``(VII) ensure compliance with all applicable environmental
laws;
``(VIII) identify final approval authority;
``(IX) provide for public notification of final approvals;
``(X) establish a process for consultation with any
affected States concerning off-reservation impacts, if any,
identified pursuant to the provisions required under
subparagraph (C)(i);
``(XI) describe the remedies for breach of the lease,
business agreement, or right-of-way;
``(XII) require each lease, business agreement, and right-
of-way to include a statement that, in the event that any of
its provisions violates an express term or requirement set
forth in the tribal energy resource agreement pursuant to
which it was executed--

[[Page H2233]]

``(aa) such provision shall be null and void; and
``(bb) if the Secretary determines such provision to be
material, the Secretary shall have the authority to suspend
or rescind the lease, business agreement, or right-of-way or
take other appropriate action that the Secretary determines
to be in the best interest of the Indian tribe;

``(XIII) require each lease, business agreement, and right-
of-way to provide that it will become effective on the date
on which a copy of the executed lease, business agreement, or
right-of-way is delivered to the Secretary in accordance with
regulations adopted pursuant to this subsection; and
``(XIV) include citations to tribal laws, regulations, or
procedures, if any, that set out tribal remedies that must be
exhausted before a petition may be submitted to the Secretary
pursuant to paragraph (7)(B).
``(C) Tribal energy resource agreements submitted under
paragraph (1) shall establish, and include provisions to
ensure compliance with, an environmental review process that,
with respect to a lease, business agreement, or right-of-way
under this section, provides for--
``(i) the identification and evaluation of all significant
environmental impacts (as compared with a no-action
alternative), including effects on cultural resources;
``(ii) the identification of proposed mitigation;
``(iii) a process for ensuring that the public is informed
of and has an opportunity to comment on the environmental
impacts of the proposed action before tribal approval of the
lease, business agreement, or right-of-way; and
``(iv) sufficient administrative support and technical
capability to carry out the environmental review process.
``(D) A tribal energy resource agreement negotiated between
the Secretary and an Indian tribe in accordance with this
subsection shall include--
``(i) provisions requiring the Secretary to conduct a
periodic review and evaluation to monitor the performance of
the Indian tribe's activities associated with the development
of energy resources under the tribal energy resource
agreement; and
``(ii) when such review and evaluation result in a finding
by the Secretary of imminent jeopardy to a physical trust
asset arising from a violation of the tribal energy resource
agreement or applicable Federal laws, provisions authorizing
the Secretary to take appropriate actions determined by the
Secretary to be necessary to protect such asset, which
actions may include reassumption of responsibility for
activities associated with the development of energy
resources on tribal land until the violation and conditions
that gave rise to such jeopardy have been corrected.
``(E) The periodic review and evaluation described in
subparagraph (D) shall be conducted on an annual basis,
except that, after the third such annual review and
evaluation, the Secretary and the Indian tribe may mutually
agree to amend the tribal energy resource agreement to
authorize the review and evaluation required by subparagraph
(D) to be conducted once every 2 years.
``(3) The Secretary shall provide notice and opportunity
for public comment on tribal energy resource agreements
submitted for approval under paragraph (1). The Secretary's
review of a tribal energy resource agreement under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) shall be limited to the direct effects of that
approval.
``(4) If the Secretary disapproves a tribal energy resource
agreement submitted by an Indian tribe under paragraph (1),
the Secretary shall, not later than 10 days after the date of
disapproval--
``(A) notify the Indian tribe in writing of the basis for
the disapproval;
``(B) identify what changes or other actions are required
to address the concerns of the Secretary; and
``(C) provide the Indian tribe with an opportunity to
revise and resubmit the tribal energy resource agreement.
``(5) If an Indian tribe executes a lease or business
agreement or grants a right-of-way in accordance with a
tribal energy resource agreement approved under this
subsection, the Indian tribe shall, in accordance with the
process and requirements set forth in the Secretary's
regulations adopted pursuant to paragraph (8), provide to the
Secretary--
``(A) a copy of the lease, business agreement, or right-of-
way document (including all amendments to and renewals of the
document); and
``(B) in the case of a tribal energy resource agreement or
a lease, business agreement, or right-of-way that permits
payments to be made directly to the Indian tribe, information
and documentation of those payments sufficient to enable the
Secretary to discharge the trust responsibility of the United
States to enforce the terms of, and protect the Indian
tribe's rights under, the lease, business agreement, or
right-of-way.
``(6)(A) For purposes of the activities to be undertaken by
the Secretary pursuant to this section, the Secretary shall--
``(i) carry out such activities in a manner consistent with
the trust responsibility of the United States relating to
mineral and other trust resources; and
``(ii) act in good faith and in the best interests of the
Indian tribes.
``(B) Subject to the provisions of subsections (a)(2), (b),
and (c) waiving the requirement of Secretarial approval of
leases, business agreements, and rights-of-way executed
pursuant to tribal energy resource agreements approved under
this section, and the provisions of subparagraph (D), nothing
in this section shall absolve the United States from any
responsibility to Indians or Indian tribes, including, but
not limited to, those which derive from the trust
relationship or from any treaties, statutes, and other laws
of the United States, Executive Orders, or agreements between
the United States and any Indian tribe.
``(C) The Secretary shall continue to have a trust
obligation to ensure that the rights and interests of an
Indian tribe are protected in the event that--
``(i) any other party to any such lease, business
agreement, or right-of-way violates any applicable provision
of Federal law or the terms of any lease, business agreement,
or right-of-way under this section; or
``(ii) any provision in such lease, business agreement, or
right-of-way violates any express provision or requirement
set forth in the tribal energy resource agreement pursuant to
which the lease, business agreement, or right-of-way was
executed.
``(D) Notwithstanding subparagraph (B), the United States
shall not be liable to any party (including any Indian tribe)
for any of the negotiated terms of, or any losses resulting
from the negotiated terms of, a lease, business agreement, or
right-of-way executed pursuant to and in accordance with a
tribal energy resource agreement approved by the Secretary
under paragraph (2). For the purpose of this subparagraph,
the term `negotiated terms' means any terms or provisions
that are negotiated by an Indian tribe and any other party or
parties to a lease, business agreement, or right-of-way
entered into pursuant to an approved tribal energy resource
agreement.
``(7)(A) In this paragraph, the term `interested party'
means any person or entity the interests of which have
sustained or will sustain a significant adverse environmental
impact as a result of the failure of an Indian tribe to
comply with a tribal energy resource agreement of the Indian
tribe approved by the Secretary under paragraph (2).
``(B) After exhaustion of tribal remedies, and in
accordance with the process and requirements set forth in
regulations adopted by the Secretary pursuant to paragraph
(8), an interested party may submit to the Secretary a
petition to review compliance of an Indian tribe with a
tribal energy resource agreement of the Indian tribe approved
by the Secretary under paragraph (2).
``(C)(i) Not later than 120 days after the date on which
the Secretary receives a petition under subparagraph (B), the
Secretary shall determine whether the Indian tribe is not in
compliance with the tribal energy resource agreement, as
alleged in the petition.
``(ii) The Secretary may adopt procedures under paragraph
(8) authorizing an extension of time, not to exceed 120 days,
for making the determination under clause (i) in any case in
which the Secretary determines that additional time is
necessary to evaluate the allegations of the petition.
``(iii) Subject to subparagraph (D), if the Secretary
determines that the Indian tribe is not in compliance with
the tribal energy resource agreement as alleged in the
petition, the Secretary shall take such action as is
necessary to ensure compliance with the provisions of the
tribal energy resource agreement, which action may include--
``(I) temporarily suspending some or all activities under a
lease, business agreement, or right-of-way under this section
until the Indian tribe or such activities are in compliance
with the provisions of the approved tribal energy resource
agreement; or
``(II) rescinding approval of all or part of the tribal
energy resource agreement, and if all of such agreement is
rescinded, reassuming the responsibility for approval of any
future leases, business agreements, or rights-of-way
described in subsections (a) and (b).
``(D) Prior to seeking to ensure compliance with the
provisions of the tribal energy resource agreement of an
Indian tribe under subparagraph (C)(iii), the Secretary
shall--
``(i) make a written determination that describes the
manner in which the tribal energy resource agreement has been
violated;
``(ii) provide the Indian tribe with a written notice of
the violations together with the written determination; and
``(iii) before taking any action described in subparagraph
(C)(iii) or seeking any other remedy, provide the Indian
tribe with a hearing and a reasonable opportunity to attain
compliance with the tribal energy resource agreement.
``(E) An Indian tribe described in subparagraph (D) shall
retain all rights to appeal as provided in regulations issued
by the Secretary.
``(8) Not later than 1 year after the date of enactment of
the Indian Tribal Energy Development and Self-Determination
Act of 2005, the Secretary shall issue regulations that
implement the provisions of this subsection, including--
``(A) criteria to be used in determining the capacity of an
Indian tribe described in paragraph (2)(B)(i), including the
experience of the Indian tribe in managing natural resources
and financial and administrative resources available for use
by the Indian tribe in implementing the approved tribal
energy resource agreement of the Indian tribe;
``(B) a process and requirements in accordance with which
an Indian tribe may--

[[Page H2234]]

``(i) voluntarily rescind a tribal energy resource
agreement approved by the Secretary under this subsection;
and
``(ii) return to the Secretary the responsibility to
approve any future leases, business agreements, and rights-
of-way described in this subsection;
``(C) provisions setting forth the scope of, and procedures
for, the periodic review and evaluation described in
subparagraphs (D) and (E) of paragraph (2), including
provisions for review of transactions, reports, site
inspections, and any other review activities the Secretary
determines to be appropriate; and
``(D) provisions defining final agency actions after
exhaustion of administrative appeals from determinations of
the Secretary under paragraph (7).
``(f) No Effect on Other Law.--Nothing in this section
affects the application of--
``(1) any Federal environment law;
``(2) the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 et seq.); or
``(3) except as otherwise provided in this title, the
Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et
seq.) and the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary for each of fiscal years 2006 through 2016 to
implement the provisions of this section and to make grants
or provide other appropriate assistance to Indian tribes to
assist the Indian tribes in developing and implementing
tribal energy resource agreements in accordance with the
provisions of this section.

``SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW.

``(a) In General.--The Secretary shall conduct a review of
all activities being conducted under the Indian Mineral
Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that
date.
``(b) Report.--Not later than 1 year after the date of
enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2005, the Secretary shall submit to
Congress a report that includes--
``(1) the results of the review;
``(2) recommendations to ensure that Indian tribes have the
opportunity to develop Indian energy resources; and
``(3) an analysis of the barriers to the development of
energy resources on Indian land (including legal, fiscal,
market, and other barriers), along with recommendations for
the removal of those barriers.

``SEC. 2606. FEDERAL POWER MARKETING ADMINISTRATIONS.

``(a) Definitions.--In this section:
``(1) The term `Administrator' means the Administrator of
the Bonneville Power Administration and the Administrator of
the Western Area Power Administration.
``(2) The term `power marketing administration' means--
``(A) the Bonneville Power Administration;
``(B) the Western Area Power Administration; and
``(C) any other power administration the power allocation
of which is used by or for the benefit of an Indian tribe
located in the service area of the administration.
``(b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy
development by taking such actions as are appropriate,
including administration of programs of the Bonneville Power
Administration and the Western Area Power Administration, in
accordance with this section.
``(c) Action by the Administrator.--In carrying out this
section, and in accordance with existing law--
``(1) each Administrator shall consider the unique
relationship that exists between the United States and Indian
tribes;
``(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to meet firming
and reserve needs of Indian-owned energy projects on Indian
land;
``(3) the Administrator of the Western Area Power
Administration may purchase non-federally generated power
from Indian tribes to meet the firming and reserve
requirements of the Western Area Power Administration; and
``(4) each Administrator shall not pay more than the
prevailing market price for an energy product nor obtain less
than prevailing market terms and conditions.
``(d) Assistance for Transmission System Use.--(1) An
Administrator may provide technical assistance to Indian
tribes seeking to use the high-voltage transmission system
for delivery of electric power.
``(2) The costs of technical assistance provided under
paragraph (1) shall be funded by the Secretary of Energy
using nonreimbursable funds appropriated for that purpose, or
by the applicable Indian tribes.
``(e) Power Allocation Study.--Not later than 2 years after
the date of enactment of the Indian Tribal Energy Development
and Self-Determination Act of 2005, the Secretary of Energy
shall submit to Congress a report that--
``(1) describes the use by Indian tribes 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 service areas of those administrations; and
``(2) identifies--
``(A) the quantity of power allocated to, or used for the
benefit of, Indian tribes by the Western Area Power
Administration;
``(B) the quantity of power sold to Indian tribes by other
power marketing administrations; and
``(C) barriers that impede tribal access to and use of
Federal power, including an assessment of opportunities to
remove those barriers and improve the ability of power
marketing administrations to deliver Federal power.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$750,000, which shall remain available until expended and
shall not be reimbursable.''.
(b) Conforming Amendment.--The table of contents for the
Energy Policy Act of 1992 is amended by striking the items
relating to title XXVI (other than the title heading) and
inserting the following:

``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving
energy development or transmission.
``Sec. 2605. Indian mineral development review.
``Sec. 2606. Federal Power Marketing Administrations.''.

SEC. 504. CONSULTATION WITH INDIAN TRIBES.

In carrying out this title and the amendments made by this
title, the Secretary of Energy and the Secretary shall, as
appropriate and to the maximum extent practicable, involve
and consult with Indian tribes.

SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT.

The Dine Power Authority, an enterprise of the Navajo
Nation, shall be eligible to receive grants and other
assistance as authorized by section 217 of the Department of
Energy Organization Act, as added by section 502 of this
title, and section 2602 of the Energy Policy Act of 1992, as
amended by this title, for activities associated with the
development of a transmission line from the Four Corners Area
to southern Nevada, including related power generation
opportunities.

TITLE VI--NUCLEAR MATTERS

Subtitle A--Price-Anderson Act Amendments

SEC. 601. SHORT TITLE.

This subtitle may be cited as the ``Price-Anderson
Amendments Act of 2005'' .

SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

(a) Indemnification of Nuclear Regulatory Commission
Licensees.--Section 170 c. of the Atomic Energy Act of 1954
(42 U.S.C. 2210(c)) is amended--
(1) in the subsection heading, by striking ``Licenses'' and
inserting ``Licensees''; and
(2) by striking ``December 31, 2003'' each place it appears
and inserting ``December 31, 2025''.
(b) Indemnification of Department of Energy Contractors.--
Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42
U.S.C. 2210(d)(1)(A)) is amended by striking ``December 31,
2006'' and inserting ``December 31, 2025''.
(c) Indemnification of Nonprofit Educational
Institutions.--Section 170 k. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(k)) is amended by striking ``August 1,
2002'' each place it appears and inserting ``December 31,
2025''.

SEC. 603. MAXIMUM ASSESSMENT.

Section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) is amended--
(1) in the second proviso of the third sentence of
subsection b.(1)--
(A) by striking ``$63,000,000'' and inserting
``$95,800,000''; and
(B) by striking ``$10,000,000 in any 1 year'' and inserting
``$15,000,000 in any 1 year (subject to adjustment for
inflation under subsection t.)''; and
(2) in subsection t.(1)--
(A) by inserting ``total and annual'' after ``amount of the
maximum'';
(B) by striking ``the date of the enactment of the Price-
Anderson Amendments Act of 1988'' and inserting ``August 20,
2003''; and
(C) in subparagraph (A), by striking ``such date of
enactment'' and inserting ``August 20, 2003''.

SEC. 604. 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 an agreement of indemnification entered into under
paragraph (1), the Secretary--
``(A) may require the contractor to provide and maintain
financial protection of such a type and in such amounts as
the Secretary shall determine to be appropriate to cover
public liability arising out of or in connection with the
contractual activity; and
``(B) shall indemnify the persons indemnified against such
liability 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 the
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--

[[Page H2235]]

``(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 enactment of the Price-
Anderson Amendments Act of 2005, 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--
(1) by striking ``the maximum amount of financial
protection required under subsection b. or''; and
(2) by striking ``paragraph (3) of subsection d., whichever
amount is more'' and inserting ``paragraph (2) of subsection
d.''.

SEC. 605. 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. 606. 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 ``December 31, 2021''.

SEC. 607. INFLATION ADJUSTMENT.

Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(t)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting 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, 2003, in accordance with
the aggregate percentage change in the Consumer Price Index
since--
``(A) that date, in the case of the first adjustment under
this paragraph; or
``(B) the previous adjustment under this paragraph.''.

SEC. 608. TREATMENT OF MODULAR REACTORS.

Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(b)) is amended by adding at the end the following:
``(5)(A) For purposes of this section only, the Commission
shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
``(B) A combination of facilities referred to in
subparagraph (A) is 2 or more facilities located at a single
site, each of which has a rated capacity of 100,000
electrical kilowatts or more but not more than 300,000
electrical kilowatts, with a combined rated capacity of not
more than 1,300,000 electrical kilowatts.''.

SEC. 609. APPLICABILITY.

The amendments made by sections 603, 604, and 605 do not
apply to a nuclear incident that occurs before the date of
the enactment of this Act.

SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED STATES
GOVERNMENT OF LIABILITY FOR CERTAIN FOREIGN
INCIDENTS.

Section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) is amended by adding at the end the following new
subsection:
``u. Prohibition on Assumption of Liability for Certain
Foreign Incidents.--Notwithstanding this section or any other
provision of law, no officer of the United States or of any
department, agency, or instrumentality of the United States
Government may enter into any contract or other arrangement,
or into any amendment or modification of a contract or other
arrangement, the purpose or effect of which would be to
directly or indirectly impose liability on the United States
Government, or any department, agency, or instrumentality of
the United States Government, or to otherwise directly or
indirectly require an indemnity by the United States
Government, for nuclear incidents occurring in connection
with the design, construction, or operation of a production
facility or utilization facility in any country whose
government has been identified by the Secretary of State as
engaged in state sponsorship of terrorist activities
(specifically including any country the government of which,
as of September 11, 2001, had been determined by the
Secretary of State under section 620A(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1)
of the Export Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)), or section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)) to have repeatedly provided support for
acts of international terrorism). This subsection shall not
apply to nuclear incidents occurring as a result of missions,
carried out under the direction of the Secretary of Energy,
the Secretary of Defense, or the Secretary of State, that are
necessary to safely secure, store, transport, or remove
nuclear materials for nuclear safety or nonproliferation
purposes.''.

SEC. 611. CIVIL PENALTIES.

(a) Repeal of Automatic Remission.--Section 234A b.(2) of
the Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is
amended by striking the last sentence.
(b) Limitation for Not-for-Profit Institutions.--Subsection
d. of section 234A of the Atomic Energy Act of 1954 (42
U.S.C. 2282a(d)) is amended to read as follows:
``d.(1) Notwithstanding subsection a., in the case of any
not-for-profit contractor, subcontractor, or supplier, the
total amount of civil penalties paid under subsection a. may
not exceed the total amount of fees paid within any 1-year
period (as determined by the Secretary) under the contract
under which the violation occurs.
``(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 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 (42 U.S.C. 2011 et seq.) occurring under a contract
entered into before the date of enactment of this section.

SEC. 612. FINANCIAL ACCOUNTABILITY.

(a) Amendment.--Section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210) is amended by adding at the end the
following new subsection:
``v. Financial Accountability.--(1) Notwithstanding
subsection d., the Attorney General may bring an action in
the appropriate United States district court to recover from
a contractor of the Secretary (or subcontractor or supplier
of such contractor) amounts paid by the Federal Government
under an agreement of indemnification under subsection d. for
public liability resulting from conduct which constitutes
intentional misconduct of any corporate officer, manager, or
superintendent of such contractor (or subcontractor or
supplier of such contractor).
``(2) The Attorney General may recover under paragraph (1)
an amount not to exceed the amount of the profit derived by
the defendant from the contract.
``(3) No amount recovered from any contractor (or
subcontractor or supplier of such contractor) under paragraph
(1) may be reimbursed directly or indirectly by the
Department of Energy.
``(4) Paragraph (1) shall not apply to any nonprofit entity
conducting activities under contract for the Secretary.
``(5) No waiver of a defense required under this section
shall prevent a defendant from asserting such defense in an
action brought under this subsection.
``(6) The Secretary shall, by rule, define the terms
`profit' and `nonprofit entity' for purposes of this
subsection. Such rulemaking shall be completed not later than
180 days after the date of the enactment of this
subsection.''.
(b) Effective Date.--The amendment made by this section
shall not apply to any agreement of indemnification entered
into under section 170 d. of the Atomic Energy Act of 1954
(42 U.S.C. 2210(d)) before the date of the enactment of this
Act.

Subtitle B--General Nuclear Matters

SEC. 621. LICENSES.

Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2133(c)) is amended by inserting ``from the authorization to
commence operations'' after ``forty years''.

SEC. 622. NRC TRAINING PROGRAM.

(a) In General.--In order to maintain the human resource
investment and infrastructure of the United States in the
nuclear sciences, health physics, and engineering fields, in
accordance with the statutory authorities of the Nuclear
Regulatory Commission relating to the civilian nuclear energy
program, the Nuclear Regulatory Commission shall carry out a
training and fellowship program to address shortages of
individuals with critical nuclear safety regulatory skills.
(b) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Nuclear Regulatory Commission to carry out this section
$1,000,000 for each of fiscal years 2005 through 2009.
(2) Availability.--Funds made available under paragraph (1)
shall remain available until expended.

SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.

Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(w)) is amended--
(1) by striking ``for or is issued'' and all that follows
through ``1702'' and inserting ``to the Commission for, or is
issued by the Commission, a license or certificate'';
(2) by striking ``483a'' and inserting ``9701''; and
(3) by striking ``, of applicants for, or holders of, such
licenses or certificates''.

SEC. 624. ELIMINATION OF PENSION OFFSET.

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

SEC. 625. ANTITRUST REVIEW.

Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2135(c)) is amended by adding at the end the following:
``(9) Applicability.--This subsection does not apply to an
application for a license to construct or operate a
utilization facility or production facility under section 103
or 104 b. that is filed on or after the date of enactment of
this paragraph.''.

SEC. 626. DECOMMISSIONING.

Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(i)) is amended--

[[Page H2236]]

(1) by striking ``and (3)'' and inserting ``(3)''; and
(2) by inserting before the semicolon at the end the
following: ``, and (4) to ensure that sufficient funds will
be available for the decommissioning of any production or
utilization facility licensed under section 103 or 104 b.,
including standards and restrictions governing the control,
maintenance, use, and disbursement by any former licensee
under this Act that has control over any fund for the
decommissioning of the facility''.

SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.

Title II of the Energy Reorganization Act of 1974 (42
U.S.C. 5841 et seq.) is amended by adding at the end the
following new section:

``Limitation on legal fee reimbursement

``Sec. 212. The Department of Energy shall not, except as
required under a contract entered into before the date of
enactment of this section, reimburse any contractor or
subcontractor of the Department for any legal fees or
expenses incurred with respect to a complaint subsequent to--
``(1) an adverse determination on the merits with respect
to such complaint against the contractor or subcontractor by
the Director of the Department of Energy's Office of Hearings
and Appeals pursuant to part 708 of title 10, Code of Federal
Regulations, or by a Department of Labor Administrative Law
Judge pursuant to section 211 of this Act; or
``(2) an adverse final judgment by any State or Federal
court with respect to such complaint against the contractor
or subcontractor for wrongful termination or retaliation due
to the making of disclosures protected under chapter 12 of
title 5, United States Code, section 211 of this Act, or any
comparable State law,

unless the adverse determination or final judgment is
reversed upon further administrative or judicial review.''.

SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COMMERCIAL
NUCLEAR ENERGY GENERATION FACILITIES AT
EXISTING DEPARTMENT OF ENERGY SITES.

Not later than 1 year after the date of the enactment of
this Act, the Secretary of Energy shall submit to Congress a
report on the feasibility of developing commercial nuclear
energy generation facilities at Department of Energy sites in
existence on the date of enactment of this Act.

SEC. 630. URANIUM SALES.

(a) Sales, Transfers, and Services.--Section 3112 of the
USEC Privatization Act (42 U.S.C. 2297h-10) is amended by
striking subsections (d), (e), and (f) and inserting the
following:
``(3) The Secretary may transfer to the Corporation,
notwithstanding subsections (b)(2) and (d), natural uranium
in amounts sufficient to fulfill the Department of Energy's
commitments under Article 4(B) of the Agreement between the
Department and the Corporation dated June 17, 2002.
``(d) Inventory Sales.--(1) In addition to the transfers
and sales authorized under subsections (b) and (c) and under
paragraph (5) of this subsection, the United States
Government may transfer or sell uranium in any form subject
to paragraphs (2), (3), and (4).
``(2) Except as provided in subsections (b) and (c) and
paragraph (5) of this subsection, no sale or transfer of
uranium shall be made under this subsection by the United
States Government unless--
``(A) the President determines that the material is not
necessary for national security needs and the sale or
transfer has no adverse impact on implementation of existing
government-to-government agreements;
``(B) the price paid to the appropriate Federal agency, if
the transaction is a sale, will not be less than the fair
market value of the material; and
``(C) the sale or transfer to commercial nuclear power end
users is made pursuant to a contract of at least 3 years'
duration.
``(3) Except as provided in paragraph (5), the United
States Government shall not make any transfer or sale of
uranium in any form under this subsection that would cause
the total amount of uranium transferred or sold pursuant to
this subsection that is delivered for consumption by
commercial nuclear power end users to exceed--
``(A) 3,000,000 pounds of U3 O8
equivalent in fiscal year 2005, 2006, 2007, 2008, or 2009;
``(B) 5,000,000 pounds of U3O8
equivalent in fiscal year 2010 or 2011;
``(C) 7,000,000 pounds of U3O8
equivalent in fiscal year 2012; and
``(D) 10,000,000 pounds of U3O8
equivalent in fiscal year 2013 or any fiscal year thereafter.
``(4) Except for sales or transfers under paragraph (5),
for the purposes of this subsection, the recovery of uranium
from uranium bearing materials transferred or sold by the
United States Government to the domestic uranium industry
shall be the preferred method of making uranium available.
The recovered uranium shall be counted against the annual
maximum deliveries set forth in this section, when such
uranium is sold to end users.
``(5) The United States Government may make the following
sales and transfers:
``(A) Sales or transfers to a Federal agency if the
material is transferred for the use of the receiving agency
without any resale or transfer to another entity and the
material does not meet commercial specifications.
``(B) Sales or transfers to any person for national
security purposes, as determined by the Secretary.
``(C) Sales or transfers to any State or local agency or
nonprofit, charitable, or educational institution for use
other than the generation of electricity for commercial use.
``(D) Sales or transfers to the Department of Energy
research reactor sales program.
``(E) Sales or transfers, at fair market value, for
emergency purposes in the event of a disruption in supply to
commercial nuclear power end users in the United States.
``(F) Sales or transfers, at fair market value, for use in
a commercial reactor in the United States with nonstandard
fuel requirements.
``(G) Sales or transfers provided for under law for use by
the Tennessee Valley Authority in relation to the Department
of Energy's highly enriched uranium or tritium programs.
``(6) For purposes of this subsection, the term `United
States Government' does not include the Tennessee Valley
Authority.
``(e) Savings Provision.--Nothing in this subchapter
modifies the terms of the Russian HEU Agreement.
``(f) Services.--Notwithstanding any other provision of
this section, if the Secretary determines that the
Corporation has failed, or may fail, to perform any
obligation under the Agreement between the Department of
Energy and the Corporation dated June 17, 2002, and as
amended thereafter, which failure could result in termination
of the Agreement, the Secretary shall notify Congress, in
such a manner that affords Congress an opportunity to
comment, prior to a determination by the Secretary whether
termination, waiver, or modification of the Agreement is
required. The Secretary is authorized to take such action as
he determines necessary under the Agreement to terminate,
waive, or modify provisions of the Agreement to achieve its
purposes.''.
(b) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary of Energy shall report
to Congress on the implementation of this section. The report
shall include a discussion of available excess uranium
inventories; all sales or transfers made by the United States
Government; the impact of such sales or transfers on the
domestic uranium industry, the spot market uranium price, and
the national security interests of the United States; and any
steps taken to remediate any adverse impacts of such sales or
transfers.

SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL
DEMONSTRATION PROJECTS FOR THE URANIUM MINING
INDUSTRY.

(a) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy $10,000,000 for
each of fiscal years 2006, 2007, and 2008 for--
(1) cooperative, cost-shared agreements between the
Department of Energy and domestic uranium producers to
identify, test, and develop improved in situ leaching mining
technologies, including low-cost environmental restoration
technologies that may be applied to sites after completion of
in situ leaching operations; and
(2) funding for competitively selected demonstration
projects with domestic uranium producers relating to--
(A) enhanced production with minimal environmental impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination activities.
(b) Domestic Uranium Producer.--For purposes of this
section, the term ``domestic uranium producer'' has the
meaning given that term in section 1018(4) of the Energy
Policy Act of 1992 (42 U.S.C. 2296b-7(4)), except that the
term shall not include any producer that has not produced
uranium from domestic reserves on or after July 30, 1998.
(c) Limitation.--No activities funded under this section
may be carried out in the State of New Mexico.

SEC. 632. WHISTLEBLOWER PROTECTION.

(a) Definition of Employer.--Section 211(a)(2) of the
Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is
amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and'' and
(3) by adding at the end the following:
``(E) a contractor or subcontractor of the Commission.''.
(b) De Novo Review.--Subsection (b) of such section 211 is
amended by adding at the end the following new paragraph:
``(4) If the Secretary has not issued a final decision
within 540 days after the filing of a complaint under
paragraph (1), and there is no showing that such delay is due
to the bad faith of the person seeking relief under this
paragraph, such person may bring an action at law or equity
for de novo review in the appropriate district court of the
United States, which shall have jurisdiction over such an
action without regard to the amount in controversy.''.

SEC. 633. MEDICAL ISOTOPE PRODUCTION.

Section 134 of the Atomic Energy Act of 1954 (42 U.S.C.
2160d) is amended--
(1) in subsection a., by striking ``a. The Commission'' and
inserting ``a. In General.--Except as provided in subsection
b., the Commission'';
(2) by redesignating subsection b. as subsection c.; and
(3) by inserting after subsection a. the following:
``b. Medical Isotope Production.--
``(1) Definitions.--In this subsection:
``(A) Highly enriched uranium.--The term `highly enriched
uranium' means uranium enriched to include concentration of
U-235 above 20 percent.

[[Page H2237]]

``(B) Medical isotope.--The term `medical isotope' includes
Molybdenum 99, Iodine 131, Xenon 133, and other radioactive
materials used to produce a radiopharmaceutical for
diagnostic, therapeutic procedures or for research and
development.
``(C) Radiopharmaceutical.--The term `radiopharmaceutical'
means a radioactive isotope that--
``(i) contains byproduct material combined with chemical or
biological material; and
``(ii) is designed to accumulate temporarily in a part of
the body for therapeutic purposes or for enabling the
production of a useful image for use in a diagnosis of a
medical condition.
``(D) Recipient country.--The term `recipient country'
means Canada, Belgium, France, Germany, and the Netherlands.
``(2) Licenses.--The Commission may issue a license
authorizing the export (including shipment to and use at
intermediate and ultimate consignees specified in the
license) to a recipient country of highly enriched uranium
for medical isotope production if, in addition to any other
requirements of this Act (except subsection a.), the
Commission determines that--
``(A) a recipient country that supplies an assurance letter
to the United States Government in connection with the
consideration by the Commission of the export license
application has informed the United States Government that
any intermediate consignees and the ultimate consignee
specified in the application are required to use the highly
enriched uranium solely to produce medical isotopes; and
``(B) the highly enriched uranium for medical isotope
production will be irradiated only in a reactor in a
recipient country that--
``(i) uses an alternative nuclear reactor fuel; or
``(ii) is the subject of an agreement with the United
States Government to convert to an alternative nuclear
reactor fuel when alternative nuclear reactor fuel can be
used in the reactor.
``(3) Review of physical protection requirements.--
``(A) In general.--The Commission shall review the adequacy
of physical protection requirements that, as of the date of
an application under paragraph (2), are applicable to the
transportation and storage of highly enriched uranium for
medical isotope production or control of residual material
after irradiation and extraction of medical isotopes.
``(B) Imposition of additional requirements.--If the
Commission determines that additional physical protection
requirements are necessary (including a limit on the quantity
of highly enriched uranium that may be contained in a single
shipment), the Commission shall impose such requirements as
license conditions or through other appropriate means.
``(4) First report to congress.--
``(A) NAS study.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to conduct
a study to determine--
``(i) the feasibility of procuring supplies of medical
isotopes from commercial sources that do not use highly
enriched uranium;
``(ii) the current and projected demand and availability of
medical isotopes in regular current domestic use;
``(iii) the progress that is being made by the Department
of Energy and others to eliminate all use of highly enriched
uranium in reactor fuel, reactor targets, and medical isotope
production facilities; and
``(iv) the potential cost differential in medical isotope
production in the reactors and target processing facilities
if the products were derived from production systems that do
not involve fuels and targets with highly enriched uranium.
``(B) Feasibility.--For the purpose of this subsection, the
use of low enriched uranium to produce medical isotopes shall
be determined to be feasible if--
``(i) low enriched uranium targets have been developed and
demonstrated for use in the reactors and target processing
facilities that produce significant quantities of medical
isotopes to serve United States needs for such isotopes;
``(ii) sufficient quantities of medical isotopes are
available from low enriched uranium targets and fuel to meet
United States domestic needs; and
``(iii) the average anticipated total cost increase from
production of medical isotopes in such facilities without use
of highly enriched uranium is less than 10 percent.
``(C) Report by the secretary.--Not later than 5 years
after the date of enactment of the Energy Policy Act of 2005,
the Secretary shall submit to Congress a report that--
``(i) contains the findings of the National Academy of
Sciences made in the study under subparagraph (A); and
``(ii) discloses the existence of any commitments from
commercial producers to provide domestic requirements for
medical isotopes without use of highly enriched uranium
consistent with the feasibility criteria described in
subparagraph (B) not later than the date that is 4 years
after the date of submission of the report.
``(5) Second report to congress.--If the study of the
National Academy of Sciences determines under paragraph
(4)(A)(i) that the procurement of supplies of medical
isotopes from commercial sources that do not use highly
enriched uranium is feasible, but the Secretary is unable to
report the existence of commitments under paragraph
(4)(C)(ii), not later than the date that is 6 years after the
date of enactment of the Energy Policy Act of 2005, the
Secretary shall submit to Congress a report that describes
options for developing domestic supplies of medical isotopes
in quantities that are adequate to meet domestic demand
without the use of highly enriched uranium consistent with
the cost increase described in paragraph (4)(B)(iii).
``(6) Certification.--At such time as commercial facilities
that do not use highly enriched uranium are capable of
meeting domestic requirements for medical isotopes, within
the cost increase described in paragraph (4)(B)(iii) and
without impairing the reliable supply of medical isotopes for
domestic utilization, the Secretary shall submit to Congress
a certification to that effect.
``(7) Sunset provision.--After the Secretary submits a
certification under paragraph (6), the Commission shall, by
rule, terminate its review of export license applications
under this subsection.''.

SEC. 634. FERNALD BYPRODUCT MATERIAL.

Title III of the Nuclear Waste Policy Act of 1982 (42
U.S.C. 10221 et seq.) is amended by adding at the end the
following new section:

``Fernald byproduct material

``Sec. 307. Notwithstanding any other law, the material in
the concrete silos at the Fernald uranium processing facility
managed on the date of enactment of this section by the
Department shall be considered byproduct material (as defined
by section 11 e.(2) of the Atomic Energy Act of 1954 (42
U.S.C. 2014(e)(2))). The Department may dispose of the
material in a facility regulated by the Commission or by an
Agreement State. If the Department disposes of the material
in such a facility, the Commission or the Agreement State
shall regulate the material as byproduct material under that
Act. This material shall remain subject to the jurisdiction
of the Department until it is received at a commercial,
Commission-licensed, or Agreement State-licensed facility, at
which time the material shall be subject to the health and
safety requirements of the Commission or the Agreement State
with jurisdiction over the disposal site.''.

SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE
WASTE.

Subtitle D of title I of the Nuclear Waste Policy Act of
1982 (42 U.S.C. 10171) is amended by adding at the end the
following new section:

``Safe disposal of greater-than-class c radioactive waste

``Sec. 152. (a) Designation of Responsibility.--The
Secretary shall designate an Office within the Department to
have the responsibility for activities needed to develop a
new, or use an existing, facility for safely disposing of all
low-level radioactive waste with concentrations of
radionuclides that exceed the limits established by the
Commission for Class C radioactive waste (referred to in this
section as `GTCC waste').
``(b) Comprehensive Plan.--The Secretary shall develop a
comprehensive plan for permanent disposal of GTCC waste which
includes plans for a disposal facility. This plan shall be
transmitted to Congress in a series of reports, including the
following:
``(1) Report on short-term plan.--Not later than 180 days
after the date of enactment of this section, the Secretary
shall submit to Congress a plan describing the Secretary's
operational strategy for continued recovery and storage of
GTCC waste until a permanent disposal facility is available.
``(2) Update of 1987 report.--
``(A) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary shall submit to
Congress an update of the Secretary's February 1987 report
submitted to Congress that made comprehensive recommendations
for the disposal of GTCC waste.
``(B) Contents.--The update under this paragraph shall
contain--
``(i) a detailed description and identification of the GTCC
waste that is to be disposed;
``(ii) a description of current domestic and international
programs, both Federal and commercial, for management and
disposition of GTCC waste;
``(iii) an identification of the Federal and private
options and costs for the safe disposal of GTCC waste;
``(iv) an identification of the options for ensuring that,
wherever possible, generators and users of GTCC waste bear
all reasonable costs of waste disposal;
``(v) an identification of any new statutory authority
required for disposal of GTCC waste; and
``(vi) in coordination with the Environmental Protection
Agency and the Commission, an identification of any new
regulatory guidance needed for the disposal of GTCC waste.
``(3) Report on cost and schedule for completion of
environmental impact statement and record of decision.--Not
later than 180 days after the date of submission of the
update required under paragraph (2), the Secretary shall
submit to Congress a report containing an estimate of the
cost and schedule to complete a draft and final environmental
impact statement and to issue a record of decision for a
permanent disposal facility, utilizing either a new or
existing facility, for GTCC waste.''.

SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT
SPONSOR TERRORISM.

(a) In General.--Section 129 of the Atomic Energy Act of
1954 (42 U.S.C. 2158) is amended--

[[Page H2238]]

(1) by inserting ``a.'' before ``No nuclear materials and
equipment''; and
(2) by adding at the end the following new subsection:
``b.(1) Notwithstanding any other provision of law,
including specifically section 121 of this Act, and except as
provided in paragraphs (2) and (3), no nuclear materials and
equipment or sensitive nuclear technology, including items
and assistance authorized by section 57 b. of this Act and
regulated under part 810 of title 10, Code of Federal
Regulations, and nuclear-related items on the Commerce
Control List maintained under part 774 of title 15 of the
Code of Federal Regulations, shall be exported or reexported,
or transferred or retransferred whether directly or
indirectly, and no Federal agency shall issue any license,
approval, or authorization for the export or reexport, or
transfer, or retransfer, whether directly or indirectly, of
these items or assistance (as defined in this paragraph) to
any country whose government has been identified by the
Secretary of State as engaged in state sponsorship of
terrorist activities (specifically including any country the
government of which has been determined by the Secretary of
State under section 620A(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or
section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)) to have repeatedly provided support for acts of
international terrorism).
``(2) This subsection shall not apply to exports,
reexports, transfers, or retransfers of radiation monitoring
technologies, surveillance equipment, seals, cameras, tamper-
indication devices, nuclear detectors, monitoring systems, or
equipment necessary to safely store, transport, or remove
hazardous materials, whether such items, services, or
information are regulated by the Department of Energy, the
Department of Commerce, or the Nuclear Regulatory Commission,
except to the extent that such technologies, equipment,
seals, cameras, devices, detectors, or systems are available
for use in the design or construction of nuclear reactors or
nuclear weapons.
``(3) The President may waive the application of paragraph
(1) to a country if the President determines and certifies to
Congress that the waiver will not result in any increased
risk that the country receiving the waiver will acquire
nuclear weapons, nuclear reactors, or any materials or
components of nuclear weapons and--
``(A) the government of such country has not within the
preceding 12-month period willfully aided or abetted the
international proliferation of nuclear explosive devices to
individuals or groups or willfully aided and abetted an
individual or groups in acquiring unsafeguarded nuclear
materials;
``(B) in the judgment of the President, the government of
such country has provided adequate, verifiable assurances
that it will cease its support for acts of international
terrorism;
``(C) the waiver of that paragraph is in the vital national
security interest of the United States; or
``(D) such a waiver is essential to prevent or respond to a
serious radiological hazard in the country receiving the
waiver that may or does threaten public health and safety.''.
(b) Applicability to Exports Approved for Transfer but not
Transferred.--Subsection b. of section 129 of Atomic Energy
Act of 1954, as added by subsection (a) of this section,
shall apply with respect to exports that have been approved
for transfer as of the date of the enactment of this Act but
have not yet been transferred as of that date.

SEC. 638. NATIONAL URANIUM STOCKPILE.

The USEC Privatization Act (42 U.S.C. 2297h et seq.) is
amended by adding at the end the following new section:

``SEC. 3118. NATIONAL URANIUM STOCKPILE.

``(a) Stockpile Creation.--The Secretary of Energy may
create a national low-enriched uranium stockpile with the
goals to--
``(1) enhance national energy security; and
``(2) reduce global proliferation threats.
``(b) Source of Material.--The Secretary shall obtain
material for the stockpile from--
``(1) material derived from blend-down of Russian highly
enriched uranium derived from weapons materials; and
``(2) domestically mined and enriched uranium.
``(c) Limitation on Sales or Transfers.--Sales or transfer
of materials in the stockpile shall occur pursuant to section
3112.''.

SEC. 639. NUCLEAR REGULATORY COMMISSION MEETINGS.

If a quorum of the Nuclear Regulatory Commission gathers to
discuss official Commission business the discussions shall be
recorded, and the Commission shall notify the public of such
discussions within 15 days after they occur. The Commission
shall promptly make a transcript of the recording available
to the public on request, except to the extent that public
disclosure is exempted or prohibited by law. This section
shall not apply to a meeting, within the meaning of that term
under section 552b(a)(2) of title 5, United States Code.

SEC. 640. EMPLOYEE BENEFITS.

Section 3110 of the USEC Privatization Act (42 U.S.C.
2297h-8(a)) is amended by adding at the end the following new
paragraph:
``(8) Continuity of Benefits.--Not later than 30 days after
the date of enactment of this paragraph, the Secretary shall
implement such actions as are necessary to ensure that any
employee who--
``(A) is involved in providing infrastructure or
environmental remediation services at the Portsmouth, Ohio,
or the Paducah, Kentucky, Gaseous Diffusion Plant;
``(B) has been an employee of the Department of Energy's
predecessor management and integrating contractor (or its
first or second tier subcontractors), or of the Corporation,
at the Portsmouth, Ohio, or the Paducah, Kentucky, facility;
and
``(C) was eligible as of April 1, 2005, to participate in
or transfer into the Multiple Employer Pension Plan or the
associated multiple employer retiree health care benefit
plans, as defined in those plans,

shall continue to be eligible to participate in or transfer
into such pension or health care benefit plans.''.

Subtitle C--Additional Hydrogen Production Provisions

SEC. 651. HYDROGEN PRODUCTION PROGRAMS.

(a) Advanced Reactor Hydrogen Cogeneration Project.--
(1) Project establishment.-- The Secretary is directed to
establish an Advanced Reactor Hydrogen Cogeneration Project.
(2) Project definition.-- The project shall consist of the
research, development, design, construction, and operation of
a hydrogen production cogeneration research facility that,
relative to the current commercial reactors, enhances safety
features, reduces waste production, enhances thermal
efficiencies, increases proliferation resistance, and has the
potential for improved economics and physical security in
reactor siting. This facility shall be constructed so as to
enable research and development on advanced reactors of the
type selected and on alternative approaches for reactor-based
production of hydrogen.
(3) Project management.--
(A) Management.--The project shall be managed within the
Department by the Office of Nuclear Energy, Science, and
Technology.
(B) Lead laboratory.--The lead laboratory for the project,
providing the site for the reactor construction, shall be the
Idaho National Laboratory (in this subsection referred to as
``INL'').
(C) Steering committee.--The Secretary shall establish a
national steering committee with membership from the national
laboratories, universities, and industry to provide advice to
the Secretary and the Director of the Office of Nuclear
Energy, Science, and Technology on technical and program
management aspects of the project.
(D) Collaboration.--Project activities shall be conducted
at INL, other national laboratories, universities, domestic
industry, and international partners.
(4) Project requirements.--
(A) Research and development.--
(i) In general.--The project shall include planning,
research and development, design, and construction of an
advanced, next-generation, nuclear energy system suitable for
enabling further research and development on advanced reactor
technologies and alternative approaches for reactor-based
generation of hydrogen.
(ii) Reactor test capabilities at inl.--The project shall
utilize, where appropriate, extensive reactor test
capabilities resident at INL.
(iii) Alternatives.--The project shall be designed to
explore technical, environmental, and economic feasibility of
alternative approaches for reactor-based hydrogen production.
(iv) Industrial lead.--The industrial lead for the project
shall be a company incorporated in the United States.
(B) International collaboration.--
(i) In general.--The Secretary shall seek international
cooperation, participation, and financial contribution in
this project.
(ii) Assistance from international partners.--The Secretary
may contract for assistance from specialists or facilities
from member countries of the Generation IV International
Forum, the Russian Federation, or other international
partners where such specialists or facilities provide access
to cost-effective and relevant skills or test capabilities.
(iii) Generation iv international forum.--International
activities shall be coordinated with the Generation IV
International Forum.
(iv) Generation iv nuclear energy systems program.--The
Secretary may combine this project with the Generation IV
Nuclear Energy Systems Program.
(C) Demonstration.--The overall project, which may involve
demonstration of selected project objectives in a partner
nation, must demonstrate both electricity and hydrogen
production and may provide flexibility, where technically and
economically feasible in the design and construction, to
enable tests of alternative reactor core and cooling
configurations.
(D) Partnerships.--The Secretary shall establish cost-
shared partnerships with domestic industry or international
participants for the research, development, design,
construction, and operation of the research facility, and
preference in determining the final project structure shall
be given to an overall project which retains United States
leadership while maximizing cost sharing opportunities and
minimizing Federal funding responsibilities.
(E) Target date.--The Secretary shall select technologies
and develop the project to provide initial testing of either
hydrogen

[[Page H2239]]

production or electricity generation by 2011, or provide a
report to Congress explaining why this date is not feasible.
(F) Waiver of construction timelines.--The Secretary is
authorized to conduct the Advanced Reactor Hydrogen
Cogeneration Project without the constraints of DOE Order
413.3, relating to program and project management for the
acquisition of capital assets, as necessary to meet the
specified operational date.
(G) Competition.--The Secretary may fund up to 2 teams for
up to 1 year to develop detailed proposals for competitive
evaluation and selection of a single proposal and concept for
further progress. The Secretary shall define the format of
the competitive evaluation of proposals.
(H) Use of facilities.--Research facilities in industry,
national laboratories, or universities either within the
United States or with cooperating international partners may
be used to develop the enabling technologies for the research
facility. Utilization of domestic university-based facilities
shall be encouraged to provide educational opportunities for
student development.
(I) Role of nuclear regulatory commission.--
(i) In general.--The Nuclear Regulatory Commission shall
have licensing and regulatory authority for any reactor
authorized under this subsection, pursuant to section 202 of
the Energy Reorganization Act of 1974 (42 U.S.C. 5842).
(ii) Risk-based criteria.--The Secretary shall seek active
participation of the Nuclear Regulatory Commission throughout
the project to develop risk-based criteria for any future
commercial development of a similar reactor architecture.
(J) Report.--The Secretary shall develop and transmit to
Congress a comprehensive project plan not later than 3 months
after the date of enactment of this Act. The project plan
shall be updated annually with each annual budget submission.
(b) Advanced Nuclear Reactor Technologies.--The Secretary
shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to advanced nuclear
reactor technologies and for implementing the recommendations
related to advanced nuclear reactor technologies that are
included in the report transmitted under subsection (d); and
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the commercial production of hydrogen at
existing nuclear power plants, including one demonstration
project at a national laboratory or institution of higher
education using an advanced gas-cooled reactor.
(c) Collocation With Hydrogen Production Facility.--Section
103 of the Atomic Energy Act of 1954 (42 U.S.C. 2011) is
amended by adding at the end the following new subsection:
``g. The Commission shall give priority to the licensing of
a utilization facility that is collocated with a hydrogen
production facility. The Commission shall issue a final
decision approving or disapproving the issuance of a license
to construct and operate a utilization facility not later
than the expiration of 3 years after the date of the
submission of such application, if the application references
a Commission-certified design and an early site permit,
unless the Commission determines that the applicant has
proposed material and substantial changes to the design or
the site design parameters.''.
(d) Report.--The Secretary shall transmit to the Congress
not later than 120 days after the date of enactment of this
Act a report containing detailed summaries of the roadmaps
prepared under subsection (b)(1), descriptions of the
Secretary's progress in establishing the projects and other
programs required under this section, and recommendations for
promoting the availability of advanced nuclear reactor energy
technologies for the production of hydrogen.
(e) Authorization of Appropriations.--For the purpose of
supporting research programs related to the development of
advanced nuclear reactor technologies under this section,
there are authorized to be appropriated to the Secretary--
(1) $65,000,000 for fiscal year 2006;
(2) $74,750,000 for fiscal year 2007;
(3) $85,962,500 for fiscal year 2008;
(4) $98,856,875 for fiscal year 2009;
(5) $113,685,406 for fiscal year 2010;
(6) $130,738,217 for fiscal year 2011;
(7) $150,348,950 for fiscal year 2012;
(8) $172,901,292 for fiscal year 2013;
(9) $198,836,486 for fiscal year 2014; and
(10) $228,661,959 for fiscal year 2015.

SEC. 652. DEFINITIONS.

For purposes of this subtitle--
(1) the term ``advanced nuclear reactor technologies''
means--
(A) technologies related to advanced light water reactors
that may be commercially available in the near-term,
including mid-sized reactors with passive safety features,
for the generation of electric power from nuclear fission and
the production of hydrogen; and
(B) technologies related to other nuclear reactors that may
require prototype demonstration prior to availability in the
mid-term or long-term, including high-temperature, gas-cooled
reactors and liquid metal reactors, for the generation of
electric power from nuclear fission and the production of
hydrogen;
(2) the term ``institution of higher education'' has the
meaning given to that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)); and
(3) the term ``Secretary'' means the Secretary of Energy.

Subtitle D--Nuclear Security

SEC. 661. NUCLEAR FACILITY THREATS.

(a) Study.--The President, in consultation with the Nuclear
Regulatory Commission (referred to in this subtitle as the
``Commission'') and other appropriate Federal, State, and
local agencies and private entities, shall conduct a study to
identify the types of threats that pose an appreciable risk
to the security of the various classes of facilities licensed
by the Commission under the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.). Such study shall take into account, but
not be limited to--
(1) the events of September 11, 2001;
(2) an assessment of physical, cyber, biochemical, and
other terrorist threats;
(3) the potential for attack on facilities by multiple
coordinated teams of a large number of individuals;
(4) the potential for assistance in an attack from several
persons employed at the facility;
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based threats;
(7) the potential use of explosive devices of considerable
size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of long
duration;
(10) the potential for attacks on spent fuel shipments by
multiple coordinated teams of a large number of individuals;
(11) the adequacy of planning to protect the public health
and safety at and around nuclear facilities, as appropriate,
in the event of a terrorist attack against a nuclear
facility; and
(12) the potential for theft and diversion of nuclear
materials from such facilities.
(b) Summary and Classification Report.--Not later than 180
days after the date of the enactment of this Act, the
President shall transmit to Congress and the Commission a
report--
(1) summarizing the types of threats identified under
subsection (a); and
(2) classifying each type of threat identified under
subsection (a), in accordance with existing laws and
regulations, as either--
(A) involving attacks and destructive acts, including
sabotage, directed against the facility by an enemy of the
United States, whether a foreign government or other person,
or otherwise falling under the responsibilities of the
Federal Government; or
(B) involving the type of risks that Commission licensees
should be responsible for guarding against.
(c) Federal Action Report.--Not later than 90 days after
the date on which a report is transmitted under subsection
(b), the President shall transmit to Congress a report on
actions taken, or to be taken, to address the types of
threats identified under subsection (b)(2)(A), including
identification of the Federal, State, and local agencies
responsible for carrying out the obligations and authorities
of the United States. Such report may include a classified
annex, as appropriate.
(d) Regulations.--Not later than 180 days after the date on
which a report is transmitted under subsection (b), the
Commission may revise, by rule, the design basis threats
issued before the date of enactment of this section as the
Commission considers appropriate based on the summary and
classification report.
(e) Physical Security Program.--The Commission shall
establish an operational safeguards response evaluation
program that ensures that the physical protection capability
and operational safeguards response for sensitive nuclear
facilities, as determined by the Commission consistent with
the protection of public health and the common defense and
security, shall be tested periodically through Commission
approved or designed, observed, and evaluated force-on-force
exercises to determine whether the ability to defeat the
design basis threat is being maintained. For purposes of this
subsection, the term ``sensitive nuclear facilities''
includes at a minimum commercial nuclear power plants and
category I fuel cycle facilities.
(f) Control of Information.--Notwithstanding any other
provision of law, the Commission may undertake any rulemaking
under this subtitle in a manner that will fully protect
safeguards and classified national security information.
(g) Federal Security Coordinators.--
(1) Regional offices.--Not later than 18 months after the
date of enactment of this Act, the Commission shall assign a
Federal security coordinator, under the employment of the
Commission, to each region of the Commission.
(2) Responsibilities.--The Federal security coordinator
shall be responsible for--
(A) communicating with the Commission and other Federal,
State, and local authorities concerning threats, including
threats against such classes of facilities as the Commission
determines to be appropriate;
(B) ensuring that such classes of facilities as the
Commission determines to be appropriate maintain security
consistent with the security plan in accordance with the
appropriate threat level; and
(C) assisting in the coordination of security measures
among the private security

[[Page H2240]]

forces at such classes of facilities as the Commission
determines to be appropriate and Federal, State, and local
authorities, as appropriate.
(h) Training Program.--The President shall establish a
program to provide technical assistance and training to
Federal agencies, the National Guard, and State and local law
enforcement and emergency response agencies in responding to
threats against a designated nuclear facility.

SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY RECORD CHECKS.

(a) In General.--Subsection a. of section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169(a)) is amended--
(1) by striking ``a. The Nuclear'' and all that follows
through ``section 147.'' and inserting the following:
``a. In General.--
``(1) Requirements.--
``(A) In general.--The Commission shall require each
individual or entity--
``(i) that is licensed or certified to engage in an
activity subject to regulation by the Commission;
``(ii) that has filed an application for a license or
certificate to engage in an activity subject to regulation by
the Commission; or
``(iii) that has notified the Commission, in writing, of an
intent to file an application for licensing, certification,
permitting, or approval of a product or activity subject to
regulation by the Commission,

to fingerprint each individual described in subparagraph (B)
before the individual is permitted unescorted access or
access, whichever is applicable, as described in subparagraph
(B).
``(B) Individuals required to be fingerprinted.--The
Commission shall require to be fingerprinted each individual
who--
``(i) is permitted unescorted access to--

``(I) a utilization facility; or
``(II) radioactive material or other property subject to
regulation by the Commission that the Commission determines
to be of such significance to the public health and safety or
the common defense and security as to warrant fingerprinting
and background checks; or

``(ii) is permitted access to safeguards information under
section 147.'';
(2) by striking ``All fingerprints obtained by a licensee
or applicant as required in the preceding sentence'' and
inserting the following:
``(2) Submission to the attorney general.--All fingerprints
obtained by an individual or entity as required in paragraph
(1)'';
(3) by striking ``The costs of any identification and
records check conducted pursuant to the preceding sentence
shall be paid by the licensee or applicant.'' and inserting
the following:
``(3) Costs.--The costs of any identification and records
check conducted pursuant to paragraph (1) shall be paid by
the individual or entity required to conduct the
fingerprinting under paragraph (1)(A).''; and
(4) by striking ``Notwithstanding any other provision of
law, the Attorney General may provide all the results of the
search to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide
such results to licensee or applicant submitting such
fingerprints.'' and inserting the following:
``(4) Provision to individual or entity required to conduct
fingerprinting.--Notwithstanding any other provision of law,
the Attorney General may provide all the results of the
search to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide
such results to the individual or entity required to conduct
the fingerprinting under paragraph (1)(A).''.
(b) Administration.--Subsection c. of section 149 of the
Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) is amended--
(1) by striking ``, subject to public notice and comment,
regulations--'' and inserting ``requirements--''; and
(2) by striking, in paragraph (2)(B), ``unescorted access
to the facility of a licensee or applicant'' and inserting
``unescorted access to a utilization facility, radioactive
material, or other property described in subsection
a.(1)(B)''.
(c) Biometric Methods.--Subsection d. of section 149 of the
Atomic Energy Act of 1954 (42 U.S.C. 2169(d)) is redesignated
as subsection e., and the following is inserted after
subsection c.:
``d. Use of Other Biometric Methods.--The Commission may
satisfy any requirement for a person to conduct
fingerprinting under this section using any other biometric
method for identification approved for use by the Attorney
General, after the Commission has approved the alternative
method by rule.''.

SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF LICENSEES
AND CERTIFICATE HOLDERS OF THE COMMISSION.

Section 161 of the Atomic Energy Act of 1954 (42 U.S.C.
2201) is amended by adding at the end the following
subsection:
``(z)(1) notwithstanding section 922(o), (v), and (w) of
title 18, United States Code, or any similar provision of any
State law or any similar rule or regulation of a State or any
political subdivision of a State prohibiting the transfer or
possession of a handgun, a rifle or shotgun, a short-barreled
shotgun, a short-barreled rifle, a machinegun, a
semiautomatic assault weapon, ammunition for the foregoing,
or a large capacity ammunition feeding device, authorize
security personnel of licensees and certificate holders of
the Commission (including employees of contractors of
licensees and certificate holders) to receive, possess,
transport, import, and use 1 or more of those weapons,
ammunition, or devices, if the Commission determines that--
``(A) such authorization is necessary to the discharge of
the security personnel's official duties; and
``(B) the security personnel--
``(i) are not otherwise prohibited from possessing or
receiving a firearm under Federal or State laws pertaining to
possession of firearms by certain categories of persons;
``(ii) have successfully completed requirements established
through guidelines implementing this subsection for training
in use of firearms and tactical maneuvers;
``(iii) are engaged in the protection of--

``(I) facilities owned or operated by a Commission licensee
or certificate holder that are designated by the Commission;
or
``(II) radioactive material or other property owned or
possessed by a person that is a licensee or certificate
holder of the Commission, or that is being transported to or
from a facility owned or operated by such a licensee or
certificate holder, and that has been determined by the
Commission to be of significance to the common defense and
security or public health and safety; and

``(iv) are discharging their official duties.
``(2) Such receipt, possession, transportation,
importation, or use shall be subject to--
``(A) chapter 44 of title 18, United States Code, except
for section 922(a)(4), (o), (v), and (w);
``(B) chapter 53 of title 26, United States Code, except
for section 5844; and
``(C) a background check by the Attorney General, based on
fingerprints and including a check of the system established
under section 103(b) of the Brady Handgun Violence Prevention
Act (18 U.S.C. 922 note) to determine whether the person
applying for the authority is prohibited from possessing or
receiving a firearm under Federal or State law.
``(3) This subsection shall become effective upon the
issuance of guidelines by the Commission, with the approval
of the Attorney General, to govern the implementation of this
subsection.
``(4) In this subsection, the terms `handgun', `rifle',
`shotgun', `firearm', `ammunition', `machinegun',
`semiautomatic assault weapon', `large capacity ammunition
feeding device', `short-barreled shotgun', and `short-
barreled rifle' shall have the meanings given those terms in
section 921(a) of title 18, United States Code.''.

SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C.
2278a(a)) is amended in the first sentence by inserting ``or
subject to the licensing authority of the Commission or to
certification by the Commission under this Act or any other
Act'' before the period at the end.

SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

(a) In General.--Section 236 a. of the Atomic Energy Act of
1954 (42 U.S.C. 2284(a)) is amended--
(1) in paragraph (2), by striking ``storage facility'' and
inserting ``storage, treatment, or disposal facility'';
(2) in paragraph (3)--
(A) by striking ``such a utilization facility'' and
inserting ``a utilization facility licensed under this Act'';
and
(B) by striking ``or'' at the end;
(3) in paragraph (4)--
(A) by striking ``facility licensed'' and inserting ``,
uranium conversion, or nuclear fuel fabrication facility
licensed or certified''; and
(B) by striking the comma at the end and inserting a
semicolon; and
(4) by inserting after paragraph (4) the following:
``(5) any production, utilization, waste storage, waste
treatment, waste disposal, uranium enrichment, uranium
conversion, or nuclear fuel fabrication facility subject to
licensing or certification under this Act during construction
of the facility, if the destruction or damage caused or
attempted to be caused could adversely affect public health
and safety during the operation of the facility;
``(6) any primary facility or backup facility from which a
radiological emergency preparedness alert and warning system
is activated; or
``(7) any radioactive material or other property subject to
regulation by the Nuclear Regulatory Commission that, before
the date of the offense, the Nuclear Regulatory Commission
determines, by order or regulation published in the Federal
Register, is of significance to the public health and safety
or to common defense and security,''.
(b) Penalties.--Section 236 of the Atomic Energy Act of
1954 (42 U.S.C. 2284) is amended by striking ``$10,000 or
imprisoned for not more than 20 years, or both, and, if death
results to any person, shall be imprisoned for any term of
years or for life'' both places it appears and inserting
``$1,000,000 or imprisoned for up to life without parole''.

SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.

(a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954
(42 U.S.C. 2201-2210b) is amended by adding at the end the
following new section:

[[Page H2241]]

``SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.

``a. The Nuclear Regulatory Commission shall establish a
system to ensure that materials described in subsection b.,
when transferred or received in the United States by any
party pursuant to an import or export license issued pursuant
to this Act, are accompanied by a manifest describing the
type and amount of materials being transferred or received.
Each individual receiving or accompanying the transfer of
such materials shall be subject to a security background
check conducted by appropriate Federal entities.
``b. Except as otherwise provided by the Commission by
regulation, the materials referred to in subsection a. are
byproduct materials, source materials, special nuclear
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as
defined in section 2(16) of the Nuclear Waste Policy Act of
1982 (42 U.S.C. 10101(16))).''.
(b) Regulations.--Not later than 1 year after the date of
the enactment of this Act, and from time to time thereafter
as it considers necessary, the Nuclear Regulatory Commission
shall issue regulations identifying radioactive materials or
classes of individuals that, consistent with the protection
of public health and safety and the common defense and
security, are appropriate exceptions to the requirements of
section 170C of the Atomic Energy Act of 1954, as added by
subsection (a) of this section.
(c) Effective Date.--The amendment made by subsection (a)
shall take effect upon the issuance of regulations under
subsection (b), except that the background check requirement
shall become effective on a date established by the
Commission.
(d) Effect on Other Law.--Nothing in this section or the
amendment made by this section shall waive, modify, or affect
the application of chapter 51 of title 49, United States
Code, part A of subtitle V of title 49, United States Code,
part B of subtitle VI of title 49, United States Code, and
title 23, United States Code.
(e) Table of Sections Amendment.--The table of sections for
chapter 14 of the Atomic Energy Act of 1954 is amended by
adding at the end the following new item:

``Sec. 170C. Secure transfer of nuclear materials.''.

SEC. 667. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.

Before issuing a license for a utilization facility, the
Nuclear Regulatory Commission shall consult with the
Department of Homeland Security concerning the potential
vulnerabilities of the location of the proposed facility to
terrorist attack.

SEC. 668. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated
such sums as are necessary to carry out this subtitle and the
amendments made by this subtitle.
(b) Nuclear Regulatory Commission User Fees and Annual
Charges.--Section 6101 of the Omnibus Budget Reconciliation
Act of 1990 (42 U.S.C. 2214) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in paragraph (3),
the'' and inserting ``The'' in paragraph (1); and
(B) by striking paragraph (3); and
(2) in subsection (c)--
(A) by striking ``and'' at the end of paragraph (2)(A)(i);
(B) by striking the period at the end of paragraph
(2)(A)(ii) and inserting a semicolon;
(C) by adding at the end of paragraph (2)(A) the following
new clauses:
``(iii) amounts appropriated to the Commission for the
fiscal year for implementation of section 3116 of the Ronald
W. Reagan National Defense Authorization Act for Fiscal Year
2005; and
``(iv) amounts appropriated to the Commission for homeland
security activities of the Commission for the fiscal year,
except for the costs of fingerprinting and background checks
required by section 149 of the Atomic Energy Act of 1954 (42
U.S.C. 2169) and the costs of conducting security
inspections.''; and
(D) by amending paragraph (2)(B)(v) to read as follows:
``(v) 90 percent for fiscal year 2005 and each fiscal year
thereafter.''.
(c) Repeal.--Section 7601 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (42 U.S.C. 2213) is
repealed.

TITLE VII--VEHICLES AND FUELS

Subtitle A--Existing Programs

SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.

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)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the
Secretary determines that an agency qualifies for a waiver of
such requirement for vehicles operated by the agency in a
particular geographic area in which--
``(I) the alternative fuel otherwise required to be used in
the vehicle is not reasonably available to retail purchasers
of the fuel, as certified to the Secretary by the head of the
agency; or
``(II) the cost of the alternative fuel otherwise required
to be used in the vehicle is unreasonably more expensive
compared to gasoline, as certified to the Secretary by the
head of the agency.
``(ii) The Secretary shall monitor compliance with this
subparagraph by all such fleets and shall report annually to
Congress on the extent to which the requirements of this
subparagraph are being achieved. The report shall include
information on annual reductions achieved from the use of
petroleum-based fuels and the problems, if any, encountered
in acquiring alternative fuels.''.

SEC. 704. INCREMENTAL COST ALLOCATION.

Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C.
13212(c)) is amended by striking ``may'' and inserting
``shall''.

SEC. 705. LEASE CONDENSATES.

(a) Lease Condensate Fuels.--Section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211) is amended--
(1) in paragraph (2), by inserting ``mixtures containing 50
percent or more by volume of lease condensate or fuels
extracted from lease condensate;'' after ``liquefied
petroleum gas;'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14)--
(A) by inserting ``mixtures containing 50 percent or more
by volume of lease condensate or fuels extracted from lease
condensate,'' after ``liquefied petroleum gas,''; and
(B) by striking the period and inserting ``; and'';
(4) by adding at the end the following:
``(15) the term `lease condensate' means a mixture,
primarily of pentanes and heavier hydrocarbons, that is
recovered as a liquid from natural gas in lease separation
facilities.''.
(b) Lease Condensate Use Credits.--
(1) In general.--Title III of the Energy Policy Act of 1992
(42 U.S.C. 13211 et seq.) is amended by adding at the end the
following:

``SEC. 313. LEASE CONDENSATE USE CREDITS.

``(a) In General.--Subject to subsection (d), the Secretary
shall allocate 1 credit under this section to a fleet or
covered person for each qualifying volume of the lease
condensate component of fuel containing at least 50 percent
lease condensate, or fuels extracted from lease condensate,
after the date of enactment of this section for use by the
fleet or covered person in vehicles owned or operated by the
fleet or covered person that weigh more than 8,500 pounds
gross vehicle weight rating.
``(b) Requirements.--A credit allocated under this
section--
``(1) shall be subject to the same exceptions, authority,
documentation, and use of credits that are specified for
qualifying volumes of biodiesel in section 312; and
``(2) shall not be considered a credit under section 508.
``(c) Regulation.--
``(1) In general.--Subject to subsection (d), not later
than January 1, 2006, after the collection of appropriate
information and data that consider usage options, uses in
other industries, products, or processes, potential volume
capacities, costs, air emissions, and fuel efficiencies, the
Secretary shall issue a regulation establishing requirements
and procedures for the implementation of this section.
``(2) Qualifying volume.--The regulation shall include a
determination of an appropriate qualifying volume for lease
condensate, except that in no case shall the Secretary
determine that the qualifying volume for lease condensate is
less than 1,125 gallons.
``(d) Applicability.--This section applies unless the
Secretary finds that the use of lease condensate as an
alternative fuel would adversely affect public health or
safety or ambient air quality or the environment.''.
(2) Table of contents amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by adding at the end of the items relating to title
III the following:

``Sec. 313. Lease condensate use credits.''.

(c) Emergency Exemption.--Section 301 of the Energy Policy
Act of 1992 (42 U.S.C. 13211) is amended in paragraph (9)(E)
by inserting before the semicolon at the end ``, including
vehicles directly used in the emergency repair of
transmission lines and in the restoration of electricity
service following power outages, as determined by the
Secretary''.

SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of Energy shall
complete a study to determine the effect that titles III, IV,
and V of the Energy Policy Act of 1992 (42 U.S.C. 13211 et
seq.) have had on--
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the market; and
(3) the cost of alternative fueled vehicles.
(b) Topics.--As part of the study under subsection (a), the
Secretary shall specifically identify--
(1) the number of alternative fueled vehicles acquired by
fleets or covered persons required to acquire alternative
fueled vehicles;
(2) the quantity, by type, of alternative fuel actually
used in alternative fueled vehicles acquired by fleets or
covered persons;
(3) the quantity of petroleum displaced by the use of
alternative fuels in alternative fueled vehicles acquired by
fleets or covered persons;
(4) the direct and indirect costs of compliance with
requirements under titles III, IV, and V of the Energy Policy
Act of 1992 (42 U.S.C. 13211 et seq.), including--
(A) vehicle acquisition requirements imposed on fleets or
covered persons;

[[Page H2242]]

(B) administrative and recordkeeping expenses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee expenses; and
(E) any other factors or expenses the Secretary determines
to be necessary to compile reliable estimates of the overall
costs and benefits of complying with programs under those
titles for fleets, covered persons, and the national economy;
(5) the existence of obstacles preventing compliance with
vehicle acquisition requirements and increased use of
alternative fuel in alternative fueled vehicles acquired by
fleets or covered persons; and
(6) the projected impact of amendments to the Energy Policy
Act of 1992 made by this title.
(c) Report.--Upon completion of the study under this
section, the Secretary shall submit to Congress a report that
describes the results of the study and includes any
recommendations of the Secretary for legislative or
administrative changes concerning the alternative fueled
vehicle requirements under titles III, IV and V of the Energy
Policy Act of 1992 (42 U.S.C. 13211 et seq.).

SEC. 707. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE
FUELED VEHICLE PURCHASING REQUIREMENTS.

Section 310(b)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13218(b)(1)) is amended by striking ``1 year after the
date of enactment of this subsection'' and inserting
``February 15, 2006''.

Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses

PART 1--HYBRID VEHICLES

SEC. 711. HYBRID VEHICLES.

The Secretary of Energy shall accelerate efforts directed
toward the improvement of batteries and other rechargeable
energy storage systems, power electronics, hybrid systems
integration, and other technologies for use in hybrid
vehicles.

SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION PROGRAM.

(a) Establishment.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary, shall
establish a program for awarding grants on a competitive
basis to entities for the installation of hybrid retrofit and
electric conversion technologies for combustion engine
vehicles.
(b) Eligible Recipients.--A grant shall be awarded under
this section only--
(1) to a local or State governmental entity;
(2) to a for-profit or nonprofit corporation or other
person; or
(3) to 1 or more contracting entities that service
combustion engine vehicles for an entity described in
paragraph (1) or (2).
(c) Awards.--
(1) In general.--The Administrator shall seek, to the
maximum extent practicable, to ensure a broad geographic
distribution of grants under this section.
(2) Preferences.--In making awards of grants under this
section, the Administrator shall give preference to proposals
that--
(A) will achieve the greatest reductions in emissions per
proposal or per vehicle; or
(B) involve the use of emissions control retrofit or
conversion technology.
(d) Conditions of Grant.--A grant shall be provided under
this section on the conditions that--
(1) combustion engine vehicles on which hybrid retrofit or
conversion technology are to be demonstrated--
(A) with the retrofit or conversion technology applied will
achieve low-emission standards consistent with the Voluntary
National Low Emission Vehicle Program for Light-Duty Vehicles
and Light-Duty Trucks (40 CFR Part 86) without model year
restrictions; and
(B) will be used for a minimum of 3 years;
(2) grant funds will be used for the purchase of hybrid
retrofit or conversion technology, including State taxes and
contract fees; and
(3) grant recipients will provide at least 15 percent of
the total cost of the retrofit or conversion, including the
purchase of hybrid retrofit or conversion technology and all
necessary labor for installation of the retrofit or
conversion.
(e) Verification.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish in the
Federal Register procedures to verify--
(1) the hybrid retrofit or conversion technology to be
demonstrated; and
(2) that grants are administered in accordance with this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.

PART 2--ADVANCED VEHICLES

SEC. 721. DEFINITIONS.

In this part:
(1) Alternative fueled vehicle.--
(A) In general.--The term ``alternative fueled vehicle''
means a vehicle propelled solely on an alternative fuel (as
defined in section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211)).
(B) Exclusion.--The term ``alternative fueled vehicle''
does not include a vehicle that the Secretary determines, by
regulation, does not yield substantial environmental benefits
over a vehicle operating solely on gasoline or diesel derived
from fossil fuels.
(2) Fuel cell vehicle.--The term ``fuel cell vehicle''
means a vehicle propelled by an electric motor powered by a
fuel cell system that converts chemical energy into
electricity by combining oxygen (from air) with hydrogen fuel
that is stored on the vehicle or is produced onboard by
reformation of a hydrocarbon fuel. Such fuel cell system may
or may not include the use of auxiliary energy storage
systems to enhance vehicle performance.
(3) Hybrid vehicle.--The term ``hybrid vehicle'' means a
medium or heavy duty vehicle propelled by an internal
combustion engine or heat engine using any combustible fuel
and an onboard rechargeable energy storage device.
(4) Neighborhood electric vehicle.--The term ``neighborhood
electric vehicle'' means a motor vehicle that--
(A) meets the definition of a low-speed vehicle (as defined
in part 571 of title 49, Code of Federal Regulations);
(B) meets the definition of a zero-emission vehicle (as
defined in section 86.1702-99 of title 40, Code of Federal
Regulations);
(C) meets the requirements of Federal Motor Vehicle Safety
Standard No. 500; and
(D) has a maximum speed of not greater than 25 miles per
hour.
(5) Pilot program.--The term ``pilot program'' means the
competitive grant program established under section 722.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel vehicle.--The term ``ultra-low
sulfur diesel vehicle'' means a vehicle manufactured in any
of model years 2004 through 2006 powered by a heavy-duty
diesel engine that--
(A) is fueled by diesel fuel that contains sulfur at not
more than 15 parts per million; and
(B) emits not more than the lesser of--
(i) for vehicles 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; or
(ii) the quantity of emissions of nonmethane hydrocarbons,
oxides of nitrogen, and particulate matter of the best-
performing technology of ultra-low sulfur diesel vehicles of
the same class and application that are commercially
available.

SEC. 722. PILOT PROGRAM.

(a) Establishment.--The Secretary, in consultation with the
Secretary of Transportation, shall establish a competitive
grant pilot program, to be administered through the Clean
Cities Program of the Department of Energy, to provide not
more than 15 geographically dispersed project grants to State
governments, local governments, or metropolitan
transportation authorities to carry out a project or projects
for the purposes described in subsection (b).
(b) Grant Purposes.--A grant under this section may be used
for the following purposes:
(1) The acquisition of alternative fueled vehicles or fuel
cell vehicles, including--
(A) passenger vehicles (including neighborhood electric
vehicles); and
(B) motorized 2-wheel bicycles, scooters, or other vehicles
for use by law enforcement personnel or other State or local
government or metropolitan transportation authority
employees.
(2) The acquisition of alternative fueled vehicles, hybrid
vehicles, or fuel cell vehicles, including--
(A) buses used for public transportation or transportation
to and from schools;
(B) delivery vehicles for goods or services; and
(C) ground support vehicles at public airports (including
vehicles to carry baggage or push or pull airplanes toward or
away from terminal gates).
(3) The acquisition of ultra-low sulfur diesel vehicles.
(4) Installation or acquisition of infrastructure necessary
to directly support an alternative fueled vehicle, fuel cell
vehicle, or hybrid vehicle project funded by the grant,
including fueling and other support equipment.
(5) Operation and maintenance of vehicles, infrastructure,
and equipment acquired as part of a project funded by the
grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--The Secretary shall issue requirements for
applying for grants under the pilot program.
(B) Minimum requirements.--At a minimum, the Secretary
shall require that an application for a grant--
(i) be submitted by the head of a State or local government
or a metropolitan transportation authority, or any
combination thereof, and a registered participant in the
Clean Cities Program of the Department of Energy; and
(ii) include--

(I) a description of the project proposed in the
application, including how the project meets the requirements
of this part;
(II) an estimate of the ridership or degree of use of the
project;
(III) an estimate of the air pollution emissions reduced
and fossil fuel displaced as a result of the project, and a
plan to collect and disseminate environmental data, related
to the project to be funded under the grant, over the life of
the project;
(IV) a description of how the project will be sustainable
without Federal assistance after the completion of the term
of the grant;

[[Page H2243]]

(V) a complete description of the costs of the project,
including acquisition, construction, operation, and
maintenance costs over the expected life of the project;
(VI) a description of which costs of the project will be
supported by Federal assistance under this part; and
(VII) 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 project, and a
commitment by the applicant to use such fuel in carrying out
the project.

(2) Partners.--An applicant under paragraph (1) may carry
out a project under the pilot program in partnership with
public and private entities.
(d) Selection Criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(1) consider each applicant's previous experience with
similar projects; and
(2) give priority consideration to applications that--
(A) are most likely to maximize protection of the
environment;
(B) demonstrate the greatest commitment on the part of the
applicant to ensure funding for the proposed project and the
greatest likelihood that the project will be maintained or
expanded after Federal assistance under this part is
completed; and
(C) exceed the minimum requirements of subsection
(c)(1)(B)(ii).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall not provide more
than $20,000,000 in Federal assistance under the pilot
program to any applicant.
(2) Cost sharing.--The Secretary shall not provide more
than 50 percent of the cost, incurred during the period of
the grant, of any project under the pilot program.
(3) Maximum period of grants.--The Secretary shall not fund
any applicant under the pilot program for more than 5 years.
(4) Deployment and distribution.--The Secretary shall seek
to the maximum extent practicable to ensure a broad
geographic distribution of project sites.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Publication.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and elsewhere as
appropriate, a request for applications to undertake projects
under the pilot program. Applications shall be due not later
than 180 days after the date of publication of the notice.
(2) Selection.--Not later than 180 days after the date by
which applications for grants are due, the Secretary shall
select by competitive, peer reviewed proposal, all
applications for projects to be awarded a grant under the
pilot program.
(g) Limit on Funding.--The Secretary shall provide not less
than 20 nor more than 25 percent of the grant funding made
available under this section for the acquisition of ultra-low
sulfur diesel vehicles.

SEC. 723. REPORTS TO CONGRESS.

(a) Initial Report.--Not later than 60 days after the date
on which grants are awarded under this part, the Secretary
shall submit to Congress a report containing--
(1) an identification of the grant recipients and a
description of the projects to be funded;
(2) an identification of other applicants that submitted
applications for the pilot program; and
(3) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(b) Evaluation.--Not later than 3 years after the date of
enactment of this Act, and annually thereafter until the
pilot program ends, the Secretary shall submit to Congress a
report containing an evaluation of the effectiveness of the
pilot program, including--
(1) an assessment of the benefits to the environment
derived from the projects included in the pilot program; and
(2) an estimate of the potential benefits to the
environment to be derived from widespread application of
alternative fueled vehicles and ultra-low sulfur diesel
vehicles.

SEC. 724. AUTHORIZATION OF APPROPRIATIONS.

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

PART 3--FUEL CELL BUSES

SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.

(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Transportation, shall establish a
transit bus demonstration program to make competitive, merit-
based awards for 5-year projects to demonstrate not more than
25 fuel cell transit buses (and necessary infrastructure) in
5 geographically dispersed localities.
(b) Preference.--In selecting projects under this section,
the Secretary of Energy shall give preference to projects
that are most likely to mitigate congestion and improve air
quality.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section $10,000,000 for each of fiscal years 2006
through 2010.

Subtitle C--Clean School Buses

SEC. 741. DEFINITIONS.

In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Alternative fuel.--The term ``alternative fuel'' means
liquefied natural gas, compressed natural gas, liquefied
petroleum gas, hydrogen, propane, or methanol or ethanol at
no less than 85 percent by volume.
(3) Alternative fuel school bus.--The term ``alternative
fuel school bus'' means a school bus that meets all of the
requirements of this subtitle and is operated solely on an
alternative fuel.
(4) Emissions control retrofit technology.--The term
``emissions control retrofit technology'' means a particulate
filter or other emissions control equipment that is verified
or certified by the Administrator or the California Air
Resources Board as an effective emission reduction technology
when installed on an existing school bus.
(5) Idling.--The term ``idling'' means operating an engine
while remaining stationary for more than approximately 15
minutes, except that the term does not apply to routine
stoppages associated with traffic movement or congestion.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel fuel.--The term ``ultra-low
sulfur diesel fuel'' means diesel fuel that contains sulfur
at not more than 15 parts per million.
(8) Ultra-low sulfur diesel fuel school bus.--The term
``ultra-low sulfur diesel fuel school bus'' means a school
bus that meets all of the requirements of this subtitle and
is operated solely on ultra-low sulfur diesel fuel.

SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES
WITH CLEAN SCHOOL BUSES.

(a) Establishment.--The Administrator, in consultation with
the Secretary and other appropriate Federal departments and
agencies, shall establish a program for awarding grants on a
competitive basis to eligible entities for the replacement of
existing school buses manufactured before model year 1991
with alternative fuel school buses and ultra-low sulfur
diesel fuel school buses.
(b) Requirements.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator 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
instructions for the submission of grant applications and
certification requirements to ensure compliance with this
subtitle.
(2) Application deadlines.--The requirements established
under paragraph (1) shall require submission of grant
applications not later than--
(A) in the case of the first year of program
implementation, the date that is 180 days after the
publication of the requirements in the Federal Register; and
(B) in the case of each subsequent year, June 1 of the
year.
(c) Eligible Recipients.--A grant shall be awarded under
this section only--
(1) to 1 or more local or State governmental entities
responsible for providing school bus service to 1 or more
public school systems or responsible for the purchase of
school buses;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems to be served by the buses, except that the
application may provide that buses purchased using funds
awarded shall be owned, operated, and maintained exclusively
by the 1 or more contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities, if the association
has notified and received approval from the 1 or more school
systems to be served by the buses.
(d) Award Deadlines.--
(1) In general.--Subject to paragraph (2), the
Administrator shall award a grant made to a qualified
applicant for a fiscal year--
(A) in the case of the first fiscal year of program
implementation, not later than the date that is 90 days after
the application deadline established under subsection (b)(2);
and
(B) in the case of each subsequent fiscal year, not later
than August 1 of the fiscal year.
(2) Insufficient number of qualified grant applications.--
If the Administrator does not receive a sufficient number of
qualified grant applications to meet the requirements of
subsection (i)(1) for a fiscal year, the Administrator shall
award a grant made to a qualified applicant under subsection
(i)(2) not later than September 30 of the fiscal year.
(e) Types of Grants.--
(1) In general.--A grant under this section shall be used
for the replacement of school buses manufactured before model
year 1991 with alternative fuel school buses and ultra-low
sulfur diesel fuel school buses.
(2) No economic benefit.--Other than the receipt of the
grant, a recipient of a grant

[[Page H2244]]

under this section may not receive any economic benefit in
connection with the receipt of the grant.
(3) Priority of grant applications.--The Administrator
shall give priority to applicants that propose to replace
school buses manufactured before model year 1977.
(f) Conditions of Grant.--A grant provided under this
section shall include the following conditions:
(1) School bus fleet.--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) Use of funds.--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 fuel school buses, including State taxes and contract
fees associated with the acquisition of such buses; and
(B) to provide--
(i) up to 20 percent of the price of the alternative fuel
school buses acquired, for necessary alternative fuel
infrastructure if the infrastructure will only be available
to the grant recipient; and
(ii) up to 25 percent of the price of the alternative fuel
school buses acquired, for necessary alternative fuel
infrastructure if the infrastructure will be available to the
grant recipient and to other bus fleets.
(3) Grant recipient funds.--The grant recipient shall be
required to provide at least--
(A) in the case of a grant recipient described in paragraph
(1) or (3) of subsection (c), the lesser of--
(i) an amount equal to 15 percent of the total cost of each
bus received; or
(ii) $15,000 per bus; and
(B) in the case of a grant recipient described in
subsection (c)(2), the lesser of--
(i) an amount equal to 20 percent of the total cost of each
bus received; or
(ii) $20,000 per bus.
(4) Ultra-low sulfur diesel fuel.--In the case of a grant
recipient receiving a grant for ultra-low sulfur diesel fuel
school buses, the grant recipient shall be required to
provide documentation to the satisfaction of the
Administrator 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.
(5) Timing.--All alternative fuel school buses, ultra-low
sulfur diesel fuel school buses, or alternative fuel
infrastructure acquired under a grant awarded under this
section shall be purchased and placed in service as soon as
practicable.
(g) Buses.--
(1) In general.--Except as provided in paragraph (2),
funding under a grant made under this section for the
acquisition of new alternative fuel school buses or ultra-low
sulfur diesel fuel school buses shall only be used to acquire
school buses--
(A) with a gross vehicle weight of greater than 14,000
pounds;
(B) that are powered by a heavy duty engine;
(C) in the case of alternative fuel school buses
manufactured in model years 2004 through 2006, that emit not
more than 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
(D) in the case of ultra-low sulfur diesel fuel school
buses manufactured in model years 2004 through 2006, that
emit not more than 2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen and .01 grams
per brake horsepower-hour of particulate matter.
(2) Limitations.--A bus shall not be acquired under this
section that emits nonmethane hydrocarbons, oxides of
nitrogen, or particulate matter at a rate greater than the
best performing technology of the same class of ultra-low
sulfur diesel fuel school buses commercially available at the
time the grant is made.
(h) Deployment and Distribution.--The Administrator shall--
(1) seek, to the maximum extent practicable, to achieve
nationwide deployment of alternative fuel school buses and
ultra-low sulfur diesel fuel school buses through the program
under this section; and
(2) 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) Allocation of Funds.--
(1) In general.--Subject to paragraph (2), of the amount of
grant funding made available to carry out this section for
any fiscal year, the Administrator shall use--
(A) 70 percent for the acquisition of alternative fuel
school buses or supporting infrastructure; and
(B) 30 percent for the acquisition of ultra-low sulfur
diesel fuel school buses.
(2) Insufficient number of qualified grant applications.--
After the first fiscal year in which this program is in
effect, if the Administrator does not receive a sufficient
number of qualified grant applications to meet the
requirements of subparagraph (A) or (B) of paragraph (1) for
a fiscal year, effective beginning on August 1 of the fiscal
year, the Administrator shall make the remaining funds
available to other qualified grant applicants under this
section.
(j) Reduction of School Bus Idling.--Each local educational
agency (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)) that
receives Federal funds under the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged
to develop a policy, consistent with the health, safety, and
welfare of students and the proper operation and maintenance
of school buses, to reduce the incidence of unnecessary
school bus idling at schools when picking up and unloading
students.
(k) Annual Report.--
(1) In general.--Not later than January 31 of each year,
the Administrator shall transmit to Congress a report
evaluating implementation of the programs under this section
and section 743.
(2) Components.--The reports shall include a description
of--
(A) the total number of grant applications received;
(B) the number and types of alternative fuel school buses,
ultra-low sulfur diesel fuel school buses, and retrofitted
buses requested in grant applications;
(C) grants awarded and the criteria used to select the
grant recipients;
(D) certified engine emission levels of all buses purchased
or retrofitted under the programs under this section and
section 743;
(E) an evaluation of the in-use emission level of buses
purchased or retrofitted under the programs under this
section and section 743; and
(F) any other information the Administrator considers
appropriate.
(l) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $45,000,000 for fiscal year 2005;
(2) $65,000,000 for fiscal year 2006;
(3) $90,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.

SEC. 743. DIESEL RETROFIT PROGRAM.

(a) Establishment.--The Administrator, in consultation with
the Secretary, shall establish a program for awarding grants
on a competitive basis to entities for the installation of
retrofit technologies for diesel school buses.
(b) Eligible Recipients.--A grant shall be awarded under
this section only--
(1) to a local or State governmental entity responsible for
providing school bus service to 1 or more public school
systems;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems that the buses will serve, except that the
application may provide that buses purchased using funds
awarded shall be owned, operated, and maintained exclusively
by the 1 or more contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities, if the association
has notified and received approval from the 1 or more school
systems to be served by the buses.
(c) Awards.--
(1) In general.--The Administrator shall seek, to the
maximum extent practicable, to ensure a broad geographic
distribution of grants under this section.
(2) Preferences.--In making awards of grants under this
section, the Administrator shall give preference to proposals
that--
(A) will achieve the greatest reductions in emissions of
nonmethane hydrocarbons, oxides of nitrogen, or particulate
matter per proposal or per bus; or
(B) involve the use of emissions control retrofit
technology on diesel school buses that operate solely on
ultra-low sulfur diesel fuel.
(d) Conditions of Grant.--A grant shall be provided under
this section on the conditions that--
(1) buses on which retrofit emissions-control technology
are to be demonstrated--
(A) will operate on ultra-low sulfur diesel fuel where such
fuel is reasonably available or required for sale by State or
local law or regulation;
(B) were manufactured in model year 1991 or later; and
(C) will be used for the transportation of school children
to and from school for a minimum of 5 years;
(2) grant funds will be used for the purchase of emission
control retrofit technology, including State taxes and
contract fees; and
(3) grant recipients will provide at least 15 percent of
the total cost of the retrofit, including the purchase of
emission control retrofit technology and all necessary labor
for installation of the retrofit.
(e) Verification.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish in the
Federal Register procedures to verify--
(1) the retrofit emissions-control technology to be
demonstrated;
(2) that buses powered by ultra-low sulfur diesel fuel on
which retrofit emissions-control technology are to be
demonstrated will operate on diesel fuel containing not more
than 15 parts per million of sulfur; and
(3) that grants are administered in accordance with this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and

[[Page H2245]]

(4) such sums as are necessary for each of fiscal years
2008 and 2009.

SEC. 744. FUEL CELL SCHOOL BUSES.

(a) Establishment.--The Secretary shall establish a program
for entering into cooperative agreements--
(1) with private sector fuel cell bus developers for the
development of fuel cell-powered school buses; and
(2) 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) Reports to Congress.--Not later than 3 years after the
date of enactment of this Act, the Secretary shall transmit
to Congress 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.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for the period of fiscal years 2005 through 2007.

Subtitle D--Miscellaneous

SEC. 751. RAILROAD EFFICIENCY.

(a) Establishment.--The Secretary of Energy shall, in
cooperation with the Secretary of Transportation and the
Administrator of the Environmental Protection Agency,
establish a cost-shared, public-private research partnership
involving the Federal Government, railroad carriers,
locomotive manufacturers and equipment suppliers, and the
Association of American Railroads, to develop and demonstrate
railroad locomotive technologies that increase fuel economy,
reduce emissions, and lower costs of operation.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section--
(1) $25,000,000 for fiscal year 2006;
(2) $35,000,000 for fiscal year 2007; and
(3) $50,000,000 for fiscal year 2008.

SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall submit to Congress a report on the
experience of the Administrator with the trading of mobile
source emission reduction credits for use by owners and
operators of stationary source emission sources to meet
emission offset requirements within a nonattainment area.
(b) Contents.--The report shall describe--
(1) projects approved by the Administrator that include the
trading of mobile source emission reduction credits for use
by stationary sources in complying with offset requirements,
including a description of--
(A) project and stationary sources location;
(B) volumes of emissions offset and traded;
(C) the sources of mobile emission reduction credits; and
(D) if available, the cost of the credits;
(2) the significant issues identified by the Administrator
in consideration and approval of trading in the projects;
(3) the requirements for monitoring and assessing the air
quality benefits of any approved project;
(4) the statutory authority on which the Administrator has
based approval of the projects;
(5) an evaluation of how the resolution of issues in
approved projects could be used in other projects; and
(6) any other issues that the Administrator considers
relevant to the trading and generation of mobile source
emission reduction credits for use by stationary sources or
for other purposes.

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration and the Administrator of the
Environmental Protection Agency shall jointly initiate a
study to identify--
(1) the impact of aircraft emissions on air quality in
nonattainment areas; and
(2) ways to promote fuel conservation measures for aviation
to--
(A) enhance fuel efficiency; and
(B) reduce emissions.
(b) Focus.--The study under subsection (a) shall focus on
how air traffic management inefficiencies, such as aircraft
idling at airports, result in unnecessary fuel burn and air
emissions.
(c) Report.--Not later than 1 year after the date of the
initiation of the study under subsection (a), the
Administrator of the Federal Aviation Administration and the
Administrator of the Environmental Protection Agency shall
jointly submit to the Committee on Energy and Commerce and
the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Environment and
Public Works and the Committee on Commerce, Science, and
Transportation of the Senate a report that--
(1) describes the results of the study; and
(2) includes any recommendations on ways in which
unnecessary fuel use and emissions affecting air quality may
be reduced--
(A) without adversely affecting safety and security and
increasing individual aircraft noise; and
(B) while taking into account all aircraft emissions and
the impact of the emissions on human health.

SEC. 754. DIESEL FUELED VEHICLES.

(a) Definition of Tier 2 Emission Standards.--In this
section, the term ``tier 2 emission standards'' means the
motor vehicle emission standards that apply to passenger
cars, light trucks, and larger passenger vehicles
manufactured after the 2003 model year, as issued on February
10, 2000, by the Administrator of the Environmental
Protection Agency under sections 202 and 211 of the Clean Air
Act (42 U.S.C. 7521, 7545).
(b) Diesel Combustion and After-Treatment Technologies.--
The Secretary of Energy shall accelerate efforts to improve
diesel combustion and after-treatment technologies for use in
diesel fueled motor vehicles.
(c) Goals.--The Secretary shall carry out subsection (b)
with a view toward achieving the following goals:
(1) Developing and demonstrating diesel technologies that,
not later than 2010, meet the following standards:
(A) Tier 2 emission standards.
(B) The heavy-duty emissions standards of 2007 that are
applicable to heavy-duty vehicles under regulations issued by
the Administrator of the Environmental Protection Agency as
of the date of enactment of this Act.
(2) Developing the next generation of low-emission, high
efficiency diesel engine technologies, including homogeneous
charge compression ignition technology.

SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

[[Page H2246]]

paragraph (1) and the reports under paragraph (2)(B) may
address the potential fuel savings resulting from use of idle
reduction technology.
(4) Idle reduction deployment program.--
(A) Establishment.--
(i) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation, shall establish a
program to support deployment of idle reduction technology.
(ii) Priority.--The Administrator shall give priority to
the deployment of idle reduction technology based on
beneficial effects on air quality and ability to lessen the
emission of criteria air pollutants.
(B) Funding.--
(i) Authorization of appropriations.--There are authorized
to be appropriated to the Administrator to carry out
subparagraph (A) $19,500,000 for fiscal year 2006,
$30,000,000 for fiscal year 2007, and $45,000,000 for fiscal
year 2008.
(ii) Cost sharing.--Subject to clause (iii), the
Administrator shall require at least 50 percent of the costs
directly and specifically related to any project under this
section to be provided from non-Federal sources.
(iii) Necessary and appropriate reductions.--The
Administrator may reduce the non-Federal requirement under
clause (ii) if the Administrator determines that the
reduction is necessary and appropriate to meet the objectives
of this section.
(5) Idling location study.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation, shall commence a study
to analyze all locations at which heavy-duty vehicles stop
for long-duration idling, including--
(i) truck stops;
(ii) rest areas;
(iii) border crossings;
(iv) ports;
(v) transfer facilities; and
(vi) private terminals.
(B) Deadline for completion.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall--
(i) complete the study under subparagraph (A); and
(ii) prepare and make publicly available 1 or more reports
of the results of the study.
(c) Vehicle Weight Exemption.--Section 127(a) of title 23,
United States Code, is amended--
(1) by designating the first through eleventh sentences as
paragraphs (1) through (11), respectively; and
(2) by adding at the end the following:
``(12) Heavy duty vehicles.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
order to promote reduction of fuel use and emissions because
of engine idling, the maximum gross vehicle weight limit and
the axle weight limit for any heavy-duty vehicle equipped
with an idle reduction technology shall be increased by a
quantity necessary to compensate for the additional weight of
the idle reduction system.
``(B) Maximum weight increase.--The weight increase under
subparagraph (A) shall be not greater than 250 pounds.
``(C) Proof.--On request by a regulatory agency or law
enforcement agency, the vehicle operator shall provide proof
(through demonstration or certification) that--
``(i) the idle reduction technology is fully functional at
all times; and
``(ii) the 250-pound gross weight increase is not used for
any purpose other than the use of idle reduction technology
described in subparagraph (A).''.

SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.

(a) In General.--Not later that 180 days after the date of
enactment of this Act, the Secretary shall initiate a
partnership with diesel engine, diesel fuel injection system,
and diesel vehicle manufacturers and diesel and biodiesel
fuel providers, to include biodiesel testing in advanced
diesel engine and fuel system technology.
(b) Scope.--The program shall provide for testing to
determine the impact of biodiesel from different sources on
current and future emission control technologies, with
emphasis on--
(1) the impact of biodiesel on emissions warranty, in-use
liability, and antitampering provisions;
(2) the impact of long-term use of biodiesel on engine
operations;
(3) the options for optimizing these technologies for both
emissions and performance when switching between biodiesel
and diesel fuel; and
(4) the impact of using biodiesel in these fueling systems
and engines when used as a blend with 2006 Environmental
Protection Agency-mandated diesel fuel containing a maximum
of 15-parts-per-million sulfur content.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall provide an interim
report to Congress on the findings of the program, including
a comprehensive analysis of impacts from biodiesel on engine
operation for both existing and expected future diesel
technologies, and recommendations for ensuring optimal
emissions reductions and engine performance with biodiesel.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for each of fiscal years 2006
through 2010 to carry out this section.
(e) Definition.--For purposes of this section, the term
``biodiesel'' means a diesel fuel substitute produced from
nonpetroleum renewable resources that meets the registration
requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the
Clean Air Act (42 U.S.C. 7545) and that meets the American
Society for Testing and Materials D6751-02a Standard
Specification for Biodiesel Fuel (B100) Blend Stock for
Distillate Fuels.

SEC. 758. HIGH OCCUPANCY VEHICLE EXCEPTION.

Notwithstanding section 102(a) of title 23, United States
Code, a State may permit a vehicle with fewer than 2
occupants to operate in high occupancy vehicle lanes if the
vehicle--
(1) is a dedicated vehicle (as defined in section 301 of
the Energy Policy Act of 1992 (42 U.S. 13211)); or
(2) is a hybrid vehicle (as defined by the State for the
purpose of this section).

SEC. 759. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

(a) Ultra-Efficient Engine Technology Partnership.--The
Secretary of Energy shall enter into a cooperative agreement
with the National Aeronautics and Space Administration for
the development of ultra-efficient engine technology for
aircraft.
(b) Performance Objective.--The Secretary of Energy shall
establish the following performance objectives for the
program set forth in subsection (a):
(1) A fuel efficiency increase of 10 percent.
(2) A reduction in the impact of landing and takeoff
nitrogen oxides emissions on local air quality of 70 percent.
(c) Authorization of Appropriations .--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this section $45,000,000 for each of the fiscal years
2006, 2007, 2008, 2009, and 2010.

Subtitle E--Automobile Efficiency

SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION
AND ENFORCEMENT OF FUEL ECONOMY STANDARDS.

In addition to any other funds authorized by law, there are
authorized to be appropriated to the National Highway Traffic
Safety Administration to carry out its obligations with
respect to average fuel economy standards $2,000,000 for each
of fiscal years 2006 through 2010.

SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM
FEASIBLE AVERAGE FUEL ECONOMY.

Section 32902(f) of title 49, United States Code, is
amended to read as follows:
``(f) Considerations for Decisions on Maximum Feasible
Average Fuel Economy.--When deciding maximum feasible average
fuel economy under this section, the Secretary of
Transportation shall consider the following matters:
``(1) Technological feasibility.
``(2) Economic practicability.
``(3) The effect of other motor vehicle standards of the
Government on fuel economy.
``(4) The need of the United States to conserve energy.
``(5) The effects of fuel economy standards on passenger
automobiles, nonpassenger automobiles, and occupant safety.
``(6) The effects of compliance with average fuel economy
standards on levels of automobile industry employment in the
United States.''.

SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR
ALTERNATIVE FUELED VEHICLES.

(a) Manufacturing Incentives.--Section 32905 of title 49,
United States Code, is amended--
(1) in each of subsections (b) and (d), by striking ``1993-
2004'' and inserting ``1993-2010'';
(2) in subsection (f), by striking ``2001'' and inserting
``2007''; and
(3) in subsection (f)(1), by striking ``2004'' and
inserting ``2010''.
(b) Maximum Fuel Economy Increase.--Subsection (a)(1) of
section 32906 of title 49, United States Code, is amended--
(1) in subparagraph (A), by striking ``the model years
1993-2004'' and inserting ``model years 1993-2010''; and
(2) in subparagraph (B), by striking ``the model years
2005-2008'' and inserting ``model years 2011-2014''.

SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF
FUEL FOR AUTOMOBILES.

(a) In General.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of the National
Highway Traffic Safety Administration shall initiate a study
of the feasibility and effects of reducing by model year
2014, by a significant percentage, the amount of fuel
consumed by automobiles.
(b) Subjects of Study.--The study under this section shall
include--
(1) examination of, and recommendation of alternatives to,
the policy under current Federal law of establishing average
fuel economy standards for automobiles and requiring each
automobile manufacturer to comply with average fuel economy
standards that apply to the automobiles it manufactures;
(2) examination of how automobile manufacturers could
contribute toward achieving the reduction referred to in
subsection (a);
(3) examination of the potential of fuel cell technology in
motor vehicles in order to determine the extent to which such
technology may contribute to achieving the reduction referred
to in subsection (a); and

[[Page H2247]]

(4) examination of the effects of the reduction referred to
in subsection (a) on--
(A) gasoline supplies;
(B) the automobile industry, including sales of automobiles
manufactured in the United States;
(C) motor vehicle safety; and
(D) air quality.
(c) Report.--The Administrator shall submit to Congress a
report on the findings, conclusion, and recommendations of
the study under this section by not later than 1 year after
the date of the enactment of this Act.

TITLE VIII--HYDROGEN

SEC. 801. DEFINITIONS.

In this title:
(1) Advisory committee.--The term ``Advisory Committee''
means the Hydrogen Technical and Fuel Cell Advisory Committee
established under section 805.
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Fuel cell.--The term ``fuel cell'' means a device that
directly converts the chemical energy of a fuel and an
oxidant into electricity by an electrochemical process taking
place at separate electrodes in the device.
(4) Infrastructure.--The term ``infrastructure'' means the
equipment, systems, or facilities used to produce,
distribute, deliver, or store hydrogen.
(5) Light duty vehicle.--The term ``light duty vehicle''
means a car or truck classified by the Department of
Transportation as a Class I or IIA vehicle.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.

SEC. 802. PLAN.

Not later than 6 months after the date of enactment of this
Act, the Secretary shall transmit to Congress a coordinated
plan for the programs described in this title and any other
programs of the Department that are directly related to fuel
cells or hydrogen. The plan shall describe, at a minimum--
(1) the agenda for the next 5 years for the programs
authorized under this title, including the agenda for each
activity enumerated in section 803(a);
(2) the types of entities that will carry out the
activities under this title and what role each entity is
expected to play;
(3) the milestones that will be used to evaluate the
programs for the next 5 years;
(4) the most significant technical and nontechnical hurdles
that stand in the way of achieving the goals described in
section 803(b), and how the programs will address those
hurdles; and
(5) the policy assumptions that are implicit in the plan,
including any assumptions that would affect the sources of
hydrogen or the marketability of hydrogen-related products.

SEC. 803. PROGRAMS.

(a) Activities.--The Secretary, in partnership with the
private sector, shall conduct programs to address--
(1) production of hydrogen from diverse energy sources,
including--
(A) fossil fuels, which may include carbon capture and
sequestration;
(B) hydrogen-carrier fuels (including ethanol and
methanol);
(C) renewable energy resources, including biomass; and
(D) nuclear energy;
(2) use of hydrogen for commercial, industrial, and
residential electric power generation;
(3) safe delivery of hydrogen or hydrogen-carrier fuels,
including--
(A) transmission by pipeline and other distribution
methods; and
(B) convenient and economic refueling of vehicles either at
central refueling stations or through distributed on-site
generation;
(4) advanced vehicle technologies, including--
(A) engine and emission control systems;
(B) energy storage, electric propulsion, and hybrid
systems;
(C) automotive materials; and
(D) other advanced vehicle technologies;
(5) storage of hydrogen or hydrogen-carrier fuels,
including development of materials for safe and economic
storage in gaseous, liquid, or solid form at refueling
facilities and onboard vehicles;
(6) development of safe, durable, affordable, and efficient
fuel cells, including fuel-flexible fuel cell power systems,
improved manufacturing processes, high-temperature membranes,
cost-effective fuel processing for natural gas, fuel cell
stack and system reliability, low temperature operation, and
cold start capability;
(7) development, after consultation with the private
sector, of necessary codes and standards (including
international codes and standards and voluntary consensus
standards adopted in accordance with OMB Circular A-119) and
safety practices for the production, distribution, storage,
and use of hydrogen, hydrogen-carrier fuels, and related
products;
(8) a public education program to develop improved
knowledge and acceptability of hydrogen-based systems; and
(9) the ability of domestic automobile manufacturers to
manufacture commercially available competitive hybrid vehicle
technologies in the United States.
(b) Program Goals.--
(1) Vehicles.--For vehicles, the goals of the program are--
(A) to enable a commitment by automakers no later than year
2015 to offer safe, affordable, and technically viable
hydrogen fuel cell vehicles in the mass consumer market; and
(B) to enable production, delivery, and acceptance by
consumers of model year 2020 hydrogen fuel cell and other
hydrogen-powered vehicles that will have--
(i) a range of at least 300 miles;
(ii) improved performance and ease of driving;
(iii) safety and performance comparable to vehicle
technologies in the market; and
(iv) when compared to light duty vehicles in model year
2003--

(I) fuel economy that is substantially higher;
(II) substantially lower emissions of air pollutants; and
(III) equivalent or improved vehicle fuel system crash
integrity and occupant protection.

(2) Hydrogen energy and energy infrastructure.--For
hydrogen energy and energy infrastructure, the goals of the
program are to enable a commitment not later than 2015 that
will lead to infrastructure by 2020 that will provide--
(A) safe and convenient refueling;
(B) improved overall efficiency;
(C) widespread availability of hydrogen from domestic
energy sources through--
(i) production, with consideration of emissions levels;
(ii) delivery, including transmission by pipeline and other
distribution methods for hydrogen; and
(iii) storage, including storage in surface transportation
vehicles;
(D) hydrogen for fuel cells, internal combustion engines,
and other energy conversion devices for portable, stationary,
and transportation applications; and
(E) other technologies consistent with the Department's
plan.
(3) Fuel cells.--The goals for fuel cells and their
portable, stationary, and transportation applications are to
enable--
(A) safe, economical, and environmentally sound hydrogen
fuel cells;
(B) fuel cells for light duty and other vehicles; and
(C) other technologies consistent with the Department's
plan.
(c) Demonstration.--In carrying out the programs under this
section, the Secretary shall fund a limited number of
demonstration projects, consistent with a determination of
the maturity, cost-effectiveness, and environmental impacts
of technologies supporting each project. In selecting
projects under this subsection, the Secretary shall, to the
extent practicable and in the public interest, select
projects that--
(1) involve using hydrogen and related products at existing
facilities or installations, such as existing office
buildings, military bases, vehicle fleet centers, transit bus
authorities, or units of the National Park System;
(2) depend on reliable power from hydrogen to carry out
essential activities;
(3) lead to the replication of hydrogen technologies and
draw such technologies into the marketplace;
(4) include vehicle, portable, and stationary
demonstrations of fuel cell and hydrogen-based energy
technologies;
(5) address the interdependency of demand for hydrogen fuel
cell applications and hydrogen fuel infrastructure;
(6) raise awareness of hydrogen technology among the
public;
(7) facilitate identification of an optimum technology
among competing alternatives;
(8) address distributed generation using renewable sources;
and
(9) address applications specific to rural or remote
locations, including isolated villages and islands, the
National Park System, and tribal entities.

The Secretary shall give preference to projects which address
multiple elements contained in paragraphs (1) through (9).
(d) Deployment.--In carrying out the programs under this
section, the Secretary shall, in partnership with the private
sector, conduct activities to facilitate the deployment of
hydrogen energy and energy infrastructure, fuel cells, and
advanced vehicle technologies.
(e) Funding.--
(1) In general.--The Secretary shall carry out the programs
under this section using a competitive, merit-based review
process and consistent with the generally applicable Federal
laws and regulations governing awards of financial
assistance, contracts, or other agreements.
(2) Research centers.--Activities under this section may be
carried out by funding nationally recognized university-based
or Federal laboratory research centers.
(f) Cost Sharing.--
(1) Research and development.--Except as otherwise provided
in this title, for research and development programs carried
out under this title 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 paragraph if the Secretary
determines that the research and development is of a basic or
fundamental nature or involves technical analyses or
educational activities.
(2) Demonstration and commercial application.--Except as
otherwise provided in this title, the Secretary shall require
at least 50 percent of the costs directly and specifically
related to any demonstration or commercial application
project under this title to be provided from non-Federal
sources. The Secretary may reduce the non-Federal requirement
under this paragraph if

[[Page H2248]]

the Secretary determines that the reduction is necessary and
appropriate considering the technological risks involved in
the project and is necessary to meet the objectives of this
title.
(3) Calculation of amount.--In calculating the amount of
the non-Federal commitment under paragraph (1) or (2), the
Secretary may include personnel, services, equipment, and
other resources.
(4) Size of non-federal share.--The Secretary may consider
the size of the non-Federal share in selecting projects.
(g) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) relating to the protection of
information shall apply to projects carried out through
grants, cooperative agreements, or contracts under this
title.

SEC. 804. INTERAGENCY TASK FORCE.

(a) Establishment.--Not later than 120 days after the date
of enactment of this Act, the President shall establish an
interagency task force chaired by the Secretary with
representatives from each of the following:
(1) The Office of Science and Technology Policy within the
Executive Office of the President.
(2) The Department of Transportation.
(3) The Department of Defense.
(4) The Department of Commerce (including the National
Institute of Standards and Technology).
(5) The Department of State.
(6) The Environmental Protection Agency.
(7) The National Aeronautics and Space Administration.
(8) Other Federal agencies as the Secretary determines
appropriate.
(b) Duties.--
(1) Planning.--The interagency task force shall work
toward--
(A) a safe, economical, and environmentally sound fuel
infrastructure for hydrogen and hydrogen-carrier fuels,
including an infrastructure that supports buses and other
fleet transportation;
(B) fuel cells in government and other applications,
including portable, stationary, and transportation
applications;
(C) distributed power generation, including the generation
of combined heat, power, and clean fuels including hydrogen;
(D) uniform hydrogen codes, standards, and safety
protocols; and
(E) vehicle hydrogen fuel system integrity safety
performance.
(2) Activities.--The interagency task force may organize
workshops and conferences, may issue publications, and may
create databases to carry out its duties. The interagency
task force shall--
(A) foster the exchange of generic, nonproprietary
information and technology among industry, academia, and
government;
(B) develop and maintain an inventory and assessment of
hydrogen, fuel cells, and other advanced technologies,
including the commercial capability of each technology for
the economic and environmentally safe production,
distribution, delivery, storage, and use of hydrogen;
(C) integrate technical and other information made
available as a result of the programs and activities under
this title;
(D) promote the marketplace introduction of infrastructure
for hydrogen fuel vehicles; and
(E) conduct an education program to provide hydrogen and
fuel cell information to potential end-users.
(c) Agency Cooperation.--The heads of all agencies,
including those whose agencies are not represented on the
interagency task force, shall cooperate with and furnish
information to the interagency task force, the Advisory
Committee, and the Department.

SEC. 805. ADVISORY COMMITTEE.

(a) Establishment.--The Hydrogen Technical and Fuel Cell
Advisory Committee is established to advise the Secretary on
the programs and activities under this title.
(b) Membership.--
(1) Members.--The Advisory Committee shall be comprised of
not fewer than 12 nor more than 25 members. The members shall
be appointed by the Secretary to represent domestic industry,
academia, professional societies, government agencies,
Federal laboratories, previous advisory panels, and
financial, environmental, and other appropriate organizations
based on the Department's assessment of the technical and
other qualifications of committee members and the needs of
the Advisory Committee.
(2) Terms.--The term of a member of the Advisory Committee
shall not be more than 3 years. The Secretary may appoint
members of the Advisory Committee 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 Advisory Committee. A member of the Advisory Committee
whose term is expiring may be reappointed.
(3) Chairperson.--The Advisory Committee shall have a
chairperson, who is elected by the members from among their
number.
(c) Review.--The Advisory Committee shall review and make
recommendations to the Secretary on--
(1) the implementation of programs and activities under
this title;
(2) the safety, economical, and environmental consequences
of technologies for the production, distribution, delivery,
storage, or use of hydrogen energy and fuel cells; and
(3) the plan under section 802.
(d) Response.--
(1) Consideration of recommendations.--The Secretary shall
consider, but need not adopt, any recommendations of the
Advisory Committee under subsection (c).
(2) Biennial report.--The Secretary shall transmit a
biennial report to Congress describing any recommendations
made by the Advisory Committee since the previous report. The
report shall include a description of how the Secretary has
implemented or plans to implement the recommendations, or an
explanation of the reasons that a recommendation will not be
implemented. The report shall be transmitted along with the
President's budget proposal.
(e) Support.--The Secretary shall provide resources
necessary in the judgment of the Secretary for the Advisory
Committee to carry out its responsibilities under this title.

SEC. 806. EXTERNAL REVIEW.

(a) Plan.--The Secretary shall enter into an arrangement
with the National Academy of Sciences to review the plan
prepared under section 802, which shall be completed not
later than 6 months after the Academy receives the plan. Not
later than 45 days after receiving the review, the Secretary
shall transmit the review to Congress along with a plan to
implement the review's recommendations or an explanation of
the reasons that a recommendation will not be implemented.
(b) Additional Review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy will review the programs under section 803 during
the fourth year following the date of enactment of this Act.
The Academy's review shall include the research priorities
and technical milestones, and evaluate the progress toward
achieving them. The review shall be completed not later than
5 years after the date of enactment of this Act. Not later
than 45 days after receiving the review, the Secretary shall
transmit the review to Congress along with a plan to
implement the review's recommendations or an explanation for
the reasons that a recommendation will not be implemented.

SEC. 807. MISCELLANEOUS PROVISIONS.

(a) Representation.--The Secretary may represent the United
States interests with respect to activities and programs
under this title, in coordination with the Department of
Transportation, the National Institute of Standards and
Technology, and other relevant Federal agencies, before
governments and nongovernmental organizations including--
(1) other Federal, State, regional, and local governments
and their representatives;
(2) industry and its representatives, including members of
the energy and transportation industries; and
(3) in consultation with the Department of State, foreign
governments and their representatives including international
organizations.
(b) Regulatory Authority.--Nothing in this title shall be
construed to alter the regulatory authority of the
Department.

SEC. 808. SAVINGS CLAUSE.

Nothing in this title shall be construed to affect the
authority of the Secretary of Transportation that may exist
prior to the date of enactment of this Act with respect to--
(1) research into, and regulation of, hydrogen-powered
vehicles fuel systems integrity, standards, and safety under
subtitle VI of title 49, United States Code;
(2) regulation of hazardous materials transportation under
chapter 51 of title 49, United States Code;
(3) regulation of pipeline safety under chapter 601 of
title 49, United States Code;
(4) encouragement and promotion of research, development,
and deployment activities relating to advanced vehicle
technologies under section 5506 of title 49, United States
Code;
(5) regulation of motor vehicle safety under chapter 301 of
title 49, United States Code;
(6) automobile fuel economy under chapter 329 of title 49,
United States Code; or
(7) representation of the interests of the United States
with respect to the activities and programs under the
authority of title 49, United States Code.

SEC. 809. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to
carry out this title, in addition to any amounts made
available for these purposes under other Acts--
(1) $546,000,000 for fiscal year 2006;
(2) $750,000,000 for fiscal year 2007;
(3) $850,000,000 for fiscal year 2008;
(4) $900,000,000 for fiscal year 2009; and
(5) $1,000,000,000 for fiscal year 2010.

SEC. 810. SOLAR AND WIND TECHNOLOGIES.

(a) Solar Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to solar energy
technologies and for implementing the recommendations related
to solar energy technologies that are included in the report
transmitted under subsection (c);
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the production of hydrogen at solar energy
facilities, including one demonstration project at a national
laboratory or institution of higher education;
(3) establish a research and development program--
(A) to develop optimized concentrating solar power devices
that may be used for the

[[Page H2249]]

production of both electricity and hydrogen; and
(B) to evaluate the use of thermochemical cycles for
hydrogen production at the temperatures attainable with
concentrating solar power devices;
(4) coordinate with activities sponsored by the Department
of Energy's Office of Nuclear Energy, Science, and Technology
on high-temperature materials, thermochemical cycles, and
economic issues related to solar energy;
(5) provide for the construction and operation of new
concentrating solar power devices or solar power cogeneration
facilities that produce hydrogen either concurrently with, or
independently of, the production of electricity;
(6) support existing facilities and research programs
dedicated to the development and advancement of concentrating
solar power devices; and
(7) establish a program--
(A) to research and develop methods that use electricity
from photovoltaic devices for the onsite production of
hydrogen, such that no intermediate transmission or
distribution infrastructure is required or used and future
demand growth may be accommodated;
(B) to evaluate the economics of small-scale electrolysis
for hydrogen production; and
(C) to research the potential of modular photovoltaic
devices for the development of a hydrogen infrastructure, the
security implications of a hydrogen infrastructure, and the
benefits potentially derived from a hydrogen infrastructure.
(b) Wind Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this subtitle related to wind energy
technologies and for implementing the recommendations related
to wind energy technologies that are included in the report
transmitted under subsection (c); and
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically diverse
to demonstrate the production of hydrogen at existing wind
energy facilities, including one demonstration project at a
national laboratory or institution of higher education.
(c) Program Support.--The Secretary shall support research
programs at institutions of higher education for the
development of solar energy technologies and wind energy
technologies for the production of hydrogen. The research
programs supported under this subsection shall--
(1) enhance fellowship and faculty assistance programs;
(2) provide support for fundamental research;
(3) encourage collaborative research among industry,
national laboratories, and institutions of higher education;
(4) support communication and outreach; and
(5) to the greatest extent possible--
(A) be located in geographic areas that are regionally and
climatically diverse; and
(B) be located at part B institutions, minority
institutions, and institutions of higher education located in
States participating in the Experimental Program to Stimulate
Competitive Research of the Department of Energy.
(d) Institutions of Higher Education and National
Laboratory Interactions.--In conjunction with the programs
supported under this section, the Secretary shall develop
sabbatical, fellowship, and visiting scientist programs to
encourage national laboratories and institutions of higher
education to share and exchange personnel.
(e) Definitions.--For purposes of this section--
(1) the term ``concentrating solar power devices'' means
devices that concentrate the power of the sun by reflection
or refraction to improve the efficiency of a photovoltaic or
thermal generation process;
(2) the term ``institution of higher education'' has the
meaning given to that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a));
(3) the term ``minority institution'' has the meaning given
to that term in section 365 of the Higher Education Act of
1965 (20 U.S.C. 1067k);
(4) the term ``part B institution'' has the meaning given
to that term in section 322 of the Higher Education Act of
1965 (20 U.S.C. 1061); and
(5) the term ``photovoltaic devices'' means devices that
convert light directly into electricity through a solid-
state, semiconductor process.

TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 900. SHORT TITLE; DEFINITIONS.

(a) Short Title.--This title may be cited as the ``Energy
Research, Development, Demonstration, and Commercial
Application Act of 2005''.
(b) Definitions.--For purposes of this title:
(1) Applied programs.--The term ``applied programs'' means
the research, development, demonstration, and commercial
application programs of the Department concerning energy
efficiency, renewable energy, nuclear energy, fossil energy,
and electricity transmission and distribution.
(2) Biomass.--The term ``biomass'' means--
(A) any organic material grown for the purpose of being
converted to energy;
(B) any organic byproduct of agriculture (including wastes
from food production and processing) that can be converted
into energy; or
(C) any waste material that can be converted to energy, is
segregated from other waste materials, and is derived from--
(i) any of the following forest-related resources: mill
residues, precommercial thinnings, slash, brush, or otherwise
nonmerchantable material; or
(ii) wood waste materials, including waste pallets, crates,
dunnage, manufacturing and construction wood wastes (other
than pressure-treated, chemically-treated, or painted wood
wastes), and landscape or right-of-way tree trimmings, but
not including municipal solid waste, gas derived from the
biodegradation of municipal solid waste, or paper that is
commonly recycled.
(3) Department.--The term ``Department'' means the
Department of Energy.
(4) 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.
(5) 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)).
(6) National laboratory.--The term ``National Laboratory''
means any of the following laboratories owned by the
Department:
(A) Ames Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Accelerator Laboratory.
(E) Idaho National Laboratory.
(F) Lawrence Berkeley National Laboratory.
(G) Lawrence Livermore National Laboratory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Laboratory.
(J) National Renewable Energy Laboratory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Laboratory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Savannah River National Laboratory.
(P) Stanford Linear Accelerator Center.
(Q) Thomas Jefferson National Accelerator Facility.
(7) Renewable energy.--The term ``renewable energy'' means
energy from wind, sunlight, the flow of water, heat from the
Earth, or biomass that can be converted into a usable form
such as process heat, electricity, fuel, or space heat.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(9) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
the Northern Mariana Islands, and any other commonwealth,
territory, or possession of the United States.
(10) University.--The term ``university'' has the meaning
given the term ``institution of higher education'' in section
101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
(11) User facility.--The term ``user facility'' means a
research and development facility supported, in whole or in
part, by Departmental funds that is open, at a minimum, to
all qualified United States researchers.

Subtitle A--Science Programs

SEC. 901. OFFICE OF SCIENCE PROGRAMS.

(a) In General.--The Secretary shall conduct, through the
Office of Science, programs of research, development,
demonstration, and commercial application in high energy
physics, nuclear physics, biological and environmental
research, basic energy sciences, advanced scientific
computing research, and fusion energy sciences, including
activities described in this subtitle. The programs shall
include support for facilities and infrastructure, education,
outreach, information, analysis, and coordination activities.
(b) Rare Isotope Accelerator.--
(1) Establishment.--The Secretary shall construct and
operate a Rare Isotope Accelerator. The Secretary shall
commence construction no later than September 30, 2008.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this subsection. The Secretary shall
not spend more than $1,100,000,000 in Federal funds for all
activities associated with the Rare Isotope Accelerator prior
to operation.

SEC. 902. SYSTEMS BIOLOGY PROGRAM.

(a) Program.--
(1) Establishment.--The Secretary shall establish a
research, development, and demonstration program in genetics,
protein science, and computational biology to support the
energy, national security, and environmental missions of the
Department.
(2) Grants.--The program shall support individual
researchers and multidisciplinary teams of researchers
through competitive, merit-reviewed grants.
(3) Consultation.--In carrying out the program, the
Secretary shall consult with other Federal agencies that
conduct genetic and protein research.
(b) Goals.--The program shall have the goal of developing
technologies and methods based on the biological functions of
genomes, microbes, and plants that--
(1) can facilitate the production of fuels, including
hydrogen;

[[Page H2250]]

(2) convert carbon dioxide to organic carbon;
(3) detoxify soils and water, including at Departmental
facilities, contaminated with heavy metals and radiological
materials; and
(4) address other Department missions as identified by the
Secretary.
(c) Plan.--
(1) Development of plan.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall prepare
and transmit to Congress a research plan describing how the
program authorized pursuant to this section will be
undertaken to accomplish the program goals established in
subsection (b).
(2) Review of plan.--The Secretary shall contract with the
National Academy of Sciences to review the research plan
developed under this subsection. The Secretary shall transmit
the review to Congress not later than 18 months after
transmittal of the research plan under paragraph (1), along
with the Secretary's response to the recommendations
contained in the review.
(d) User Facilities and Ancillary Equipment.--Within the
funds authorized to be appropriated pursuant to this
subtitle, the amounts specified under section 910(b)(1),
(c)(1), (d)(1), (e)(1), and (f)(1) shall be available for
projects to develop, plan, construct, acquire, or operate
special equipment, instrumentation, or facilities, including
user facilities, for researchers conducting research,
development, demonstration, and commercial application in
systems biology and proteomics and associated biological
disciplines.
(e) Prohibition on Biomedical and Human Cell and Human
Subject Research.--
(1) No biomedical research.--In carrying out the program
under this section, the Secretary shall not conduct
biomedical research.
(2) Limitations.--Nothing in this section shall authorize
the Secretary to conduct any research or demonstrations--
(A) on human cells or human subjects; or
(B) designed to have direct application with respect to
human cells or human subjects.

SEC. 903. CATALYSIS RESEARCH AND DEVELOPMENT PROGRAM.

(a) Establishment.--The Secretary shall conduct a program
of research and development in catalysis science, including
efforts to--
(1) enable molecular-level catalyst design by coupling
experimental and computational approaches;
(2) enable nanoscale, high-throughput synthesis, assay, and
characterization; and
(3) synthesize catalysts with specific site architectures.
(b) Program Activities.--In carrying out the program under
this section, the Secretary shall--
(1) support both individual researchers and
multidisciplinary teams of researchers to pioneer new
approaches in catalytic design;
(2) develop, plan, construct, acquire, or operate special
equipment or facilities, including user facilities;
(3) support technology transfer activities to benefit
industry and other users of catalysis science and
engineering; and
(4) coordinate research and development activities with
industry and other Federal agencies.

SEC. 904. HYDROGEN.

The Secretary shall conduct a program of fundamental
research and development in support of programs authorized in
titleVIII.

SEC. 905. ADVANCED SCIENTIFIC COMPUTING RESEARCH.

The Secretary shall conduct an advanced scientific
computing research and development program, including in
applied mathematics and the activities authorized by the
Department of Energy High-End Computing Revitalization Act of
2004 (15 U.S.C. 5541 et seq.). The Secretary shall carry out
this program with the goal of supporting departmental
missions and providing the high-performance computational,
networking, and workforce resources that are required for
world leadership in science.

SEC. 906. FUSION ENERGY SCIENCES PROGRAM.

(a) Declaration of Policy.--It shall be the policy of the
United States to conduct research, development,
demonstration, and commercial application to provide for the
scientific, engineering, and commercial infrastructure
necessary to ensure that the United States is competitive
with other nations in providing fusion energy for its own
needs and the needs of other nations, including by
demonstrating electric power or hydrogen production for the
United States energy grid utilizing fusion energy at the
earliest date possible.
(b) Planning.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall transmit to
Congress a plan, with proposed cost estimates, budgets, and
lists of potential international partners, for the
implementation of the policy described in subsection (a). The
plan shall ensure that--
(A) existing fusion research facilities are more fully
utilized;
(B) fusion science, technology, theory, advanced
computation, modeling, and simulation are strengthened;
(C) new magnetic and inertial fusion research and
development facilities are selected based on scientific
innovation, cost effectiveness, and their potential to
advance the goal of practical fusion energy at the earliest
date possible, and those that are selected are funded at a
cost-effective rate;
(D) communication of scientific results and methods between
the fusion energy science community and the broader
scientific and technology communities is improved;
(E) inertial confinement fusion facilities are utilized to
the extent practicable for the purpose of inertial fusion
energy research and development; and
(F) attractive alternative inertial and magnetic fusion
energy approaches are more fully explored.
(2) Costs and schedules.--Such plan shall also address the
status of and, to the degree possible, costs and schedules
for--
(A) the design and implementation of international or
national facilities for the testing of fusion materials; and
(B) the design and implementation of international or
national facilities for the testing and development of key
fusion technologies.
(c) United States Participation in ITER.--
(1) In general.--The United States may participate in ITER
only in accordance with this subsection.
(2) Agreement.--
(A) In general.--The Secretary is authorized to negotiate
an agreement for United States participation in ITER.
(B) Contents.--Any agreement for United States
participation in ITER shall, at a minimum--
(i) clearly define the United States financial contribution
to construction and operating costs, as well as any other
costs associated with the project;
(ii) ensure that the share of ITER's high-technology
components manufactured in the United States is at least
proportionate to the United States financial contribution to
ITER;
(iii) ensure that the United States will not be financially
responsible for cost overruns in components manufactured in
other ITER participating countries;
(iv) guarantee the United States full access to all data
generated by ITER;
(v) enable United States researchers to propose and carry
out an equitable share of the experiments at ITER;
(vi) provide the United States with a role in all
collective decisionmaking related to ITER; and
(vii) describe the process for discontinuing or
decommissioning ITER and any United States role in that
process.
(3) Plan.--The Secretary, in consultation with the Fusion
Energy Sciences Advisory Committee, shall develop a plan for
the participation of United States scientists in ITER that
shall include the United States research agenda for ITER,
methods to evaluate whether ITER is promoting progress toward
making fusion a reliable and affordable source of power, and
a description of how work at ITER will relate to other
elements of the United States fusion program. The Secretary
shall request a review of the plan by the National Academy of
Sciences.
(4) Limitation.--No Federal funds shall be expended for the
construction of ITER until the Secretary has transmitted to
Congress--
(A) the agreement negotiated pursuant to paragraph (2) and
120 days have elapsed since that transmission;
(B) a report describing the management structure of ITER
and providing a fixed dollar estimate of the cost of United
States participation in the construction of ITER, and 120
days have elapsed since that transmission;
(C) a report describing how United States participation in
ITER will be funded without reducing funding for other
programs in the Office of Science, including other fusion
programs, and 60 days have elapsed since that transmission;
and
(D) the plan required by paragraph (3) (but not the
National Academy of Sciences review of that plan), and 60
days have elapsed since that transmission.
(5) Alternative to iter.--If at any time during the
negotiations on ITER, the Secretary determines that
construction and operation of ITER is unlikely or infeasible,
the Secretary shall send to Congress, as part of the budget
request for the following year, a plan for implementing a
domestic burning plasma experiment including costs and
schedules for such a plan. The Secretary shall refine such
plan in full consultation with the Fusion Energy Sciences
Advisory Committee and shall also transmit such plan to the
National Academy of Sciences for review.
(6) Definitions.--In this subsection:
(A) Construction.-- The term ``construction'' means the
physical construction of the ITER facility, and the physical
construction, purchase, or manufacture of equipment or
components that are specifically designed for the ITER
facility, but does not mean the design of the facility,
equipment, or components.
(B) ITER.--The term ``ITER'' means the international
burning plasma fusion research project in which the President
announced United States participation on January 30, 2003, or
any similar international project.

SEC. 907. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

(a) Establishment of Program.--
(1) In general.--The Secretary is authorized to establish a
Science and Technology Scholarship Program to award
scholarships to individuals that is designed to recruit and
prepare students for careers in the Department.

[[Page H2251]]

(2) Competitive process.--Individuals shall be selected to
receive scholarships under this section through a competitive
process primarily on the basis of academic merit, with
consideration given to financial need and the goal of
promoting the participation of individuals identified in
section 33 or 34 of the Science and Engineering Equal
Opportunities Act (42 U.S.C. 1885a or 1885b).
(3) Service agreements.--To carry out the Program the
Secretary shall enter into contractual agreements with
individuals selected under paragraph (2) under which the
individuals agree to serve as full-time employees of the
Department, for the period described in subsection (f)(1), in
positions needed by the Department and for which the
individuals are qualified, in exchange for receiving a
scholarship.
(b) Scholarship Eligibility.--In order to be eligible to
participate in the Program, an individual must--
(1) be enrolled or accepted for enrollment as a full-time
graduate student at an institution of higher education in an
academic program or field of study described in the list made
available under subsection (d);
(2) be a United States citizen; and
(3) at the time of the initial scholarship award, not be a
Federal employee as defined in section 2105 of title 5 of the
United States Code.
(c) Application Required.--An individual seeking a
scholarship under this section shall submit an application to
the Secretary at such time, in such manner, and containing
such information, agreements, or assurances as the Secretary
may require.
(d) Eligible Academic Programs.--The Secretary shall make
publicly available a list of academic programs and fields of
study for which scholarships under the Program may be
utilized, and shall update the list as necessary.
(e) Scholarship Requirement.--
(1) In general.--The Secretary may provide a scholarship
under the Program for an academic year if the individual
applying for the scholarship has submitted to the Secretary,
as part of the application required under subsection (c), a
proposed academic program leading to a degree in a program or
field of study on the list made available under subsection
(d).
(2) Duration of eligibility.--An individual may not receive
a scholarship under this section for more than 4 academic
years, unless the Secretary grants a waiver.
(3) Scholarship amount.--The dollar amount of a scholarship
under this section for an academic year shall be determined
under regulations issued by the Secretary, but shall in no
case exceed the cost of attendance.
(4) Authorized uses.--A scholarship provided under this
section may be expended for tuition, fees, and other
authorized expenses as established by the Secretary by
regulation.
(5) Contracts regarding direct payments to institutions.--
The Secretary may enter into a contractual agreement with an
institution of higher education under which the amounts
provided for a scholarship under this section for tuition,
fees, and other authorized expenses are paid directly to the
institution with respect to which the scholarship is
provided.
(f) Period of Obligated Service.--
(1) Duration of service.--The period of service for which
an individual shall be obligated to serve as an employee of
the Department is, except as provided in subsection (h)(2),
24 months for each academic year for which a scholarship
under this section is provided.
(2) Schedule for service.--
(A) In general.--Except as provided in subparagraph (B),
obligated service under paragraph (1) shall begin not later
than 60 days after the individual obtains the educational
degree for which the scholarship was provided.
(B) Deferral.--The Secretary may defer the obligation of an
individual to provide a period of service under paragraph (1)
if the Secretary determines that such a deferral is
appropriate. The Secretary shall prescribe the terms and
conditions under which a service obligation may be deferred
through regulation.
(g) Penalties for Breach of Scholarship Agreement.--
(1) Failure to complete academic training.--Scholarship
recipients who fail to maintain a high level of academic
standing, as defined by the Secretary by regulation, who are
dismissed from their educational institutions for
disciplinary reasons, or who voluntarily terminate academic
training before graduation from the educational program for
which the scholarship was awarded, shall be in breach of
their contractual agreement and, in lieu of any service
obligation arising under such agreement, shall be liable to
the United States for repayment not later than 1 year after
the date of default of all scholarship funds paid to them and
to the institution of higher education on their behalf under
the agreement, except as provided in subsection (h)(2). The
repayment period may be extended by the Secretary when
determined to be necessary, as established by regulation.
(2) Failure to begin or complete the service obligation or
meet the terms and conditions of deferment.--A scholarship
recipient who, for any reason, fails to begin or complete a
service obligation under this section after completion of
academic training, or fails to comply with the terms and
conditions of deferment established by the Secretary pursuant
to subsection (f)(2)(B), shall be in breach of the
contractual agreement. When a recipient breaches an agreement
for the reasons stated in the preceding sentence, the
recipient shall be liable to the United States for an amount
equal to--
(A) the total amount of scholarships received by such
individual under this section; plus
(B) the interest on the amounts of such awards which would
be payable if at the time the awards were received they were
loans bearing interest at the maximum legal prevailing rate,
as determined by the Treasurer of the United States,
multiplied by 3.

(h) Waiver or Suspension of Obligation.--
(1) Death of individual.--Any obligation of an individual
incurred under the Program (or a contractual agreement
thereunder) for service or payment shall be canceled upon the
death of the individual.
(2) Impossibility or extreme hardship.--The Secretary shall
by regulation provide for the partial or total waiver or
suspension of any obligation of service or payment incurred
by an individual under the Program (or a contractual
agreement thereunder) whenever compliance by the individual
is impossible or would involve extreme hardship to the
individual, or if enforcement of such obligation with respect
to the individual would be contrary to the best interests of
the Government.
(i) Definitions.--In this section the following definitions
apply:
(1) Cost of attendance.--The term ``cost of attendance''
has the meaning given that term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(2) Program.--The term ``Program'' means the Science and
Technology Scholarship Program established under this
section.

SEC. 908. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.

The Secretary shall maintain within the Department the
Office of Scientific and Technical Information.

SEC. 909. SCIENCE AND ENGINEERING PILOT PROGRAM.

(a) Establishment of Consortium.--Notwithstanding section
913, the Secretary shall award a grant to Oak Ridge
Associated Universities to establish a university consortium
to carry out a regional pilot program for enhancing
scientific, technological, engineering, and mathematical
literacy, creativity, and decisionmaking. The consortium
shall include leading research universities, one or more
universities that train substantial numbers of elementary and
secondary school teachers, and, where appropriate, National
Laboratories.
(b) Program Elements.--The program shall include--
(1) expanding strategic, formal partnerships among
universities with strength in research, universities that
train substantial numbers of elementary and secondary school
teachers, and the private sector;
(2) combining Department expertise with one or more
National Aeronautics and Space Administration Educator
Resource Centers;
(3) developing programs to permit current and future
teachers to participate in ongoing research projects at
National Laboratories and research universities and to adapt
lessons learned to the classroom;
(4) designing and implementing course work;
(5) designing and implementing a strategy for measuring and
assessing progress under the program; and
(6) developing models for transferring knowledge gained
under the pilot program to other institutions and areas of
the country.
(c) Report.--Not later than 2 years after appropriations
are first available for the program, the Secretary shall
transmit to Congress a report outlining lessons learned and
containing a plan for expanding the program nationwide. The
Secretary may begin implementation of such plan for expansion
of the program on October 1, 2008. The expansion of the
program shall be subject to section 913.

SEC. 910. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--In addition to amounts authorized to be
appropriated under the 21st Century Nanotechnology Research
and Development Act (15 U.S.C. 7501 et seq.) and the
Department of Energy High-End Computing Revitalization Act of
2004 (15 U.S.C. 5541 et seq.), the following sums are
authorized to be appropriated to the Secretary for the
purposes of carrying out this subtitle:
(1) For fiscal year 2006, $3,785,000,000.
(2) For fiscal year 2007, $4,153,000,000.
(3) For fiscal year 2008, $4,628,000,000.
(4) For fiscal year 2009, $5,300,000,000.
(5) For fiscal year 2010, $5,800,000,000.
(b) 2006 Allocations.--From amounts authorized under
subsection (a)(1), the following sums are authorized for
fiscal year 2006:
(1) Systems biology.--For activities under section 902,
$100,000,000.
(2) Scientific computing.--For activities under section
905, $252,000,000.
(3) Fusion energy sciences.--For activities under section
906, excluding activities under subsection (c) of that
section, $335,000,000.
(4) Scholarship.--For the scholarship program described in
section 907, $800,000.
(5) Office of scientific and technical information.--For
activities under section 908, $7,000,000.

[[Page H2252]]

(6) Pilot program.--For activities under section 909,
$4,000,000.
(c) 2007 Allocations.--From amounts authorized under
subsection (a)(2), the following sums are authorized for
fiscal year 2007:
(1) Systems biology.--For activities under section 902,
such sums as may be necessary.
(2) Scientific computing.--For activities under section
905, $270,000,000.
(3) Fusion energy sciences.--For activities under section
906, excluding activities under subsection (c) of that
section, $349,000,000.
(4) Scholarship.--For the scholarship program described in
section 907, $1,600,000.
(5) Office of scientific and technical information.--For
activities under section 908, $7,500,000.
(6) Pilot program.--For activities under section 909,
$4,000,000.
(d) 2008 Allocations.--From amounts authorized under
subsection (a)(3), the following sums are authorized for
fiscal year 2008:
(1) Systems biology.--For activities under section 902,
such sums as may be necessary.
(2) Scientific computing.--For activities under section
905, $350,000,000.
(3) Fusion energy sciences.--For activities under section
906, excluding activities under subsection (c) of that
section, $362,000,000.
(4) Scholarship.--For the scholarship program described in
section 907, $2,000,000.
(5) Office of scientific and technical information.--For
activities under section 908, $8,000,000.
(6) Pilot program.--For activities under section 909,
$4,000,000.
(e) 2009 Allocations.--From amounts authorized under
subsection (a)(4), the following sums are authorized for
fiscal year 2009:
(1) Systems biology.--For activities under section 902,
such sums as may be necessary.
(2) Scientific computing.--For activities under section
905, $375,000,000.
(3) Fusion energy sciences.--For activities under section
906, excluding activities under subsection (c) of that
section, $377,000,000.
(4) Scholarship.--For the scholarship program described in
section 907, $2,000,000.
(5) Office of scientific and technical information.--For
activities under section 908, $8,000,000.
(6) Pilot program.--For activities under section 909,
$8,000,000.
(f) 2010 Allocations.--From amounts authorized under
subsection (a)(5), the following sums are authorized for
fiscal year 2010:
(1) Systems biology.--For activities under section 902,
such sums as may be necessary.
(2) Scientific computing.--For activities under section
905, $400,000,000.
(3) Fusion energy sciences.--For activities under section
906, excluding activities under subsection (c) of that
section, $393,000,000.
(4) Scholarship.--For the scholarship program described in
section 907, $2,000,000.
(5) Office of scientific and technical information.--For
activities under section 908, $8,500,000.
(6) Pilot program.--For activities under section 909,
$8,000,000.
(g) ITER Construction.--From amounts authorized under
subsection (a) and in addition to amounts authorized under
subsections (b)(3), (c)(3), (d)(3), (e)(3), and (f)(3), there
are authorized to be appropriated to the Secretary such sums
as may be necessary for ITER construction, consistent with
the limitations of section 906(c).

Subtitle B--Research Administration and Operations

SEC. 911. COST SHARING.

(a) Research and Development.--Except as otherwise provided
in this title, for research and development programs carried
out under this title, the Secretary shall require a
commitment from non-Federal sources of at least 20 percent of
the cost of the project. The Secretary may reduce or
eliminate the non-Federal requirement under this subsection
if the Secretary determines that the research and development
is of a basic or fundamental nature.
(b) Demonstration and Commercial Application.--Except as
otherwise provided in this title, the Secretary shall require
at least 50 percent of the costs related to any demonstration
or commercial application activities under this title to be
provided from non-Federal sources. The Secretary may reduce
the non-Federal requirement under this subsection if the
Secretary determines that the reduction is necessary and
appropriate considering the technological risks involved in
the project and is necessary to meet the objectives of this
title.
(c) Calculation of Amount.--In calculating the amount of
the non-Federal commitment under subsection (a) or (b), the
Secretary may include personnel, services, equipment, and
other resources.
(d) Size of Non-Federal Share.--The Secretary may consider
the amount of the non-Federal share in selecting projects
under this title.

SEC. 912. REPROGRAMMING.

(a) Distribution Report.--Not later than 60 days after the
date of enactment of an Act appropriating amounts authorized
under this title, the Secretary shall transmit to Congress a
report explaining how such amounts will be distributed among
the activities authorized by this title.
(b) Reprogramming Letter.--No amount authorized by this
title shall be obligated or expended for a purpose
inconsistent with the appropriations Act appropriating such
amount, the report accompanying such appropriations Act, or a
distribution report transmitted under subsection (a) if such
obligation or expenditure would change an individual amount,
as represented in such an Act, report, or distribution
report, by more than 2 percent or $2,000,000, whichever is
smaller, unless the Secretary has transmitted to Congress a
letter of explanation and a period of 30 days has elapsed
after Congress receives the letter.
(c) Computation.--The computation of the 30-day period
described in subsection (b) shall exclude any day on which
either House of Congress is not in session because of an
adjournment of more than 3 days to a day certain.

SEC. 913. MERIT-BASED COMPETITION.

(a) Competitive Merit Review.--Awardees of funds authorized
under this title shall be selected through open competitions.
Funds shall be competitively awarded only after an impartial
review of the scientific and technical merit of the proposals
for such awards has been carried out by or for the Department
on the basis of criteria outlined by the Secretary in the
solicitation of proposals.
(b) Competition.--Competitive awards under this title shall
involve competitions open to all qualified entities within
one or more of the following categories:
(1) Institutions of higher education.
(2) National Laboratories.
(3) Nonprofit and for-profit private entities.
(4) State and local governments.
(5) Consortia of entities described in paragraphs (1)
through (4).
(c) Congressional Notification.--The Secretary shall notify
Congress within 30 days after awarding more than $500,000
through a competition described in subsection (b) that is
limited to 1 of the categories described in paragraphs (1)
through (4) of subsection (b).
(d) Waivers.--The Secretary may waive the requirement under
subsection (a) requiring competition if the Secretary
considers it necessary to more quickly advance research,
development, demonstration, or commercial application
activities. The Secretary shall notify Congress within 30
days when a waiver is granted under this subsection. The
Secretary may not delegate the waiver authority under this
subsection for awards over $500,000.

SEC. 914. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

(a) National Applied Energy Research and Development
Advisory Committees.--
(1) In general.--The Secretary shall establish one or more
advisory committees to review and advise the Department's
applied programs in the following areas:
(A) Energy efficiency.
(B) Renewable energy.
(C) Nuclear energy.
(D) Fossil energy.
(2) Existing advisory committees.--The Secretary may
designate an existing advisory committee within the
Department to fulfill the responsibilities of an advisory
committee under this subsection.
(b) Office of Science Advisory Committees.--
(1) Use of existing committees.--Except as otherwise
provided under the Federal Advisory Committee Act, the
Secretary shall continue to use the scientific program
advisory committees chartered under the Federal Advisory
Committee Act (5 U.S.C. App.) by the Office of Science to
oversee research and development programs under that Office.
(2) Report.--Before the Department issues any new guidance
regarding the membership for Office of Science scientific
program advisory committees, the Secretary shall transmit a
report to the Congress outlining the reasons for the proposed
changes, and 60 days must have elapsed after transmittal of
the report before the Department may implement those changes.
(3) Science advisory committee.--
(A) Establishment.--There shall be a Science Advisory
Committee for the Office of Science that includes the chairs
of each of the advisory committees described in paragraph
(1).
(B) Responsibilities.--The Science Advisory Committee
shall--
(i) advise the Director of the Office of Science on science
issues;
(ii) advise the Director of the Office of Science with
respect to the well-being and management of the National
Laboratories and Department research facilities;
(iii) advise the Director of the Office of Science with
respect to education and workforce training activities
required for effective short-term and long-term basic and
applied research activities of the Office of Science; and
(iv) advise the Director of the Office of Science with
respect to the well-being of the university research programs
supported by the Office of Science.
(c) Membership.--Each member of an advisory committee
appointed under this section shall have significant
scientific, technical, or other appropriate expertise. The
membership of each committee shall represent a wide range of
expertise, including, to the extent practicable, members with
expertise from outside the disciplines covered by the
program, and a diverse set of interests.
(d) Meetings and Purposes.--Each advisory committee under
this section shall meet at least semiannually to review and
advise on the progress made by the respective

[[Page H2253]]

research, development, demonstration, and commercial
application program or programs. The advisory committee shall
also review the measurable cost and performance-based goals
for the applied programs, and the progress on meeting such
goals.
(e) Review and Assessment.--Not later than 6 months after
the date of enactment of this Act, the Secretary shall enter
into arrangements with the National Academy of Sciences to
conduct reviews and assessments of the programs authorized by
this title, the measurable cost and performance-based goals
for the applied programs, and the progress in meeting such
goals. Such reviews and assessments shall be completed and
reports containing the results of all such reviews and
assessments transmitted to the Congress not later than 2
years after the date of enactment of this Act.

SEC. 915. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

None of the funds authorized to be appropriated to the
Secretary by this title may be used to award a management and
operating contract for a National Laboratory (excluding those
named in subparagraphs (G), (H), (N), (O) of section
900(b)(6)), unless such contract is competitively awarded, or
the Secretary grants, on a case-by-case basis, a waiver. The
Secretary may not delegate the authority to grant such a
waiver and shall submit to the Congress a report notifying it
of the waiver, and setting forth the reasons for the waiver,
at least 60 days prior to the date of the award of such
contract.

SEC. 916. NATIONAL LABORATORY DESIGNATION.

After the date of enactment of this Act the Secretary shall
not designate a facility that is not referred to in section
900(b)(6) as a National Laboratory.

SEC. 917. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

Not later than 12 months after the date of enactment of
this Act, and biennially thereafter, the Secretary shall
transmit to Congress a report on the equal employment
opportunity practices at National Laboratories. Such report
shall include--
(1) a thorough review of each laboratory contractor's equal
employment opportunity policies, including promotion to
management and professional positions and pay raises;
(2) a statistical report on complaints and their
disposition in the laboratories;
(3) a description of how equal employment opportunity
practices at the laboratories are treated in the contract and
in calculating award fees for each contractor;
(4) a summary of disciplinary actions and their disposition
by either the Department or the relevant contractors for each
laboratory;
(5) a summary of outreach efforts to attract women and
minorities to the laboratories;
(6) a summary of efforts to retain women and minorities in
the laboratories; and
(7) a summary of collaboration efforts with the Office of
Federal Contract Compliance Programs to improve equal
employment opportunity practices at the laboratories.

SEC. 918. USER FACILITY BEST PRACTICES PLAN.

The Secretary shall not allow any Department facility to
begin functioning as a user facility after the date of
enactment of this Act until the Secretary, for that
facility--
(1) develops a plan to ensure that the facility will--
(A) have a skilled staff to support a wide range of users;
(B) have a fair method for allocating time to users that
provides for input from facility management, user
representatives, and outside experts; and
(C) be operated in a safe and fiscally prudent manner; and
(2) transmits such plan to Congress and 60 days have
elapsed.

SEC. 919. SUPPORT FOR SCIENCE AND ENERGY INFRASTRUCTURE AND
FACILITIES.

(a) Strategy.--The Secretary shall develop and implement a
strategy for infrastructure and facilities supported
primarily from the Office of Science and the applied programs
at each National Laboratory and Department research facility.
Such strategy shall provide cost-effective means for--
(1) maintaining existing facilities and infrastructure, as
needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) Report.--
(1) Requirement.--The Secretary shall prepare and transmit
to the Congress not later than June 1, 2007, a report
summarizing the strategies developed under subsection (a).
(2) Contents.--For each National Laboratory and Department
research facility, for the facilities primarily used for
science and energy research, such report shall contain--
(A) the current priority list of proposed facilities and
infrastructure projects, including cost and schedule
requirements;
(B) a current 10-year plan that demonstrates the
reconfiguration of its facilities and infrastructure to meet
its missions and to address its long-term operational costs
and return on investment;
(C) the total current budget for all facilities and
infrastructure funding; and
(D) the current status of each facility and infrastructure
project compared to the original baseline cost, schedule, and
scope.

SEC. 920. COORDINATION PLAN.

(a) In General.--The Secretary shall develop a coordination
plan to improve coordination and collaboration in research,
development, demonstration, and commercial application
activities across Department organizational boundaries.
(b) Plan Contents.--The plan shall describe--
(1) how the Secretary will ensure that the applied programs
are coordinating their activities, including a description of
specific research questions that cross organizational
boundaries and of how the relevant applied programs are
coordinating their efforts to answer those questions, and how
such cross-cutting research questions will be identified in
the future;
(2) how the Secretary will ensure that research that has
been supported by the Office of Science is being or will be
used by the applied programs, including a description of
specific Office of Science-supported research that is
relevant to the applied programs and of how the applied
programs have used or will use that research; and
(3) a description of how the Secretary will ensure that the
research agenda of the Office of Science includes research
questions of concern to the applied programs, including a
description of specific research questions that the Office of
Science will address to assist the applied programs.
(c) Plan Transmittal.--The Secretary shall transmit the
coordination plan to Congress not later than 9 months after
the date of enactment of this Act, and every 2 years
thereafter shall transmit a revised coordination plan.
(d) Conference.--Not less than 6 months after the date of
enactment of this Act, the Secretary shall convene a
conference of program managers from the Office of Science and
the applied programs to review ideas and explore
possibilities for effective cross-program collaboration. The
Secretary also shall invite participation relevant Federal
agencies and other programs in the Federal Government
conducting relevant research, and other stakeholders as
appropriate.

SEC. 921. AVAILABILITY OF FUNDS.

Funds appropriated to the Secretary for activities
authorized under this title shall remain available for three
years. Funds that are not obligated at the end of three years
shall be returned to the Treasury.

Subtitle C--Energy Efficiency

CHAPTER 1--VEHICLES, BUILDINGS, AND INDUSTRIES

SEC. 922. PROGRAMS.

(a) In General.--The Secretary shall conduct programs of
energy efficiency research, development, demonstration, and
commercial application, including activities described in
this chapter. Such programs shall be focused on the following
objectives:
(1) Increasing the energy efficiency of vehicles,
buildings, and industrial processes.
(2) Reducing the Nation's demand for energy, especially
energy from foreign sources.
(3) Reducing the cost of energy and making the economy more
efficient and competitive.
(4) Improving the Nation's energy security.
(5) Reducing the environmental impact of energy-related
activities.
(b) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify energy efficiency
performance goals, with quantifiable 5-year cost and energy
savings target levels, for vehicles, buildings, and
industries, and any other such goals the Secretary considers
appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--
(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.
(c) Public Input.--The Secretary shall consider advice from
industry, universities, and other interested parties through
seeking comments in the Federal Register and other means
before transmitting each report under subsection (b).

SEC. 923. VEHICLES.

(a) Advanced, Cost-Effective Technologies.-- The Secretary
shall conduct a program of research, development,
demonstration, and commercial application of advanced, cost-
effective technologies to improve the energy efficiency and
environmental performance of light-duty and heavy-duty
vehicles, including--
(1) hybrid and electric propulsion systems, including plug-
in hybrid systems;
(2) advanced engines, including combustion engines;
(3) advanced materials, including high strength,
lightweight materials, such as nanostructured materials,
composites, multimaterial parts, carbon fibers, and materials
with high thermal conductivity;
(4) technologies for reduced drag and rolling resistance;
(5) whole-vehicle design optimization to reduce the weight
of component parts and thus increase the fuel economy of the
vehicle, including fiber optics to replace traditional
wiring;
(6) thermoelectric devices that capture waste heat and
convert thermal energy into electricity; and
(7) advanced drivetrains.

[[Page H2254]]

(b) Low-Cost Hydrogen Propulsion and Infrastructure.--The
Secretary of Energy shall--
(1) establish a research, development, and demonstration
program to determine the feasibility of using hydrogen
propulsion in light-weight vehicles and the integration of
the associated hydrogen production infrastructure using off-
the-shelf components; and
(2) identify universities and institutions that--
(A) have expertise in researching and testing vehicles
fueled by hydrogen, methane, and other fuels;
(B) have expertise in integrating off-the-shelf components
to minimize cost; and
(C) within two years can test a vehicle based on an
existing commercially available platform with a curb weight
of not less than 2,000 pounds before modifications, that--
(i) operates solely on hydrogen gas;
(ii) can travel a minimum of 300 miles under normal road
conditions; and
(iii) uses hydrogen produced from water using only solar
energy.

SEC. 924. BUILDINGS.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application of cost-effective technologies, for new
construction and retrofit, to improve the energy efficiency
and environmental performance of commercial, industrial,
institutional, and residential buildings. The program shall
use a whole-buildings approach, integrating work on elements
including--
(1) advanced controls, including occupancy sensors,
daylighting controls, wireless technologies, automated
responses to changes in the internal and external
environment, and real time delivery of information on
building system and component performance;
(2) building envelope, including windows, roofing systems
and materials, and building-integrated photovoltaics;
(3) building systems components, including--
(A) lighting;
(B) appliances, including advanced technologies, such as
stand-by load technologies, for office equipment, food
service equipment, and laundry equipment; and
(C) heating, ventilation, and cooling systems, including
ground-source heat pumps and radiant heating; and
(4) onsite renewable energy generation.
(b) Energy Efficient Building Pilot Grant Program.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary shall establish a pilot
program to award grants to businesses and organizations for
new construction of energy efficient buildings, or major
renovations of buildings that will result in energy efficient
buildings, to demonstrate innovative energy efficiency
technologies, especially those sponsored by the Department.
(2) Awards.--The Secretary shall award grants under this
subsection competitively to those applicants whose
proposals--
(A) best demonstrate--
(i) likelihood to meet or exceed the design standards
referred to in paragraph (7);
(ii) likelihood to maximize cost-effective energy
efficiency opportunities; and
(iii) advanced energy efficiency technologies; and
(B) are least likely to be realized without Federal
assistance.
(3) Amount of grants.--Grants under this subsection shall
be for up to 50 percent of design and energy modeling costs,
not to exceed $50,000 per building. No single grantee may be
eligible for more than 3 grants per year under this program.
(4) Grant payments.--
(A) Initial payment.--The Secretary shall pay 50 percent of
the total amount of the grant to grant recipients upon
selection.
(B) Remainder of payment.--The Secretary shall pay the
remaining 50 percent of the grant only after independent
certification of operational buildings for compliance with
the standards for energy efficient buildings described in
paragraph (7).
(C) Failure to comply.--The Secretary shall not provide the
remainder of the payment unless the building is certified
within 6 months after operation of the completed building to
meet the requirements described in subparagraph (B), or in
the case of major renovations the building is certified
within 6 months of the completion of the renovations.
(5) Report to congress.--Not later than 3 years after
awarding the first grant under this subsection, the Secretary
shall transmit to Congress a report containing--
(A) the total number and dollar amount of grants awarded
under this subsection; and
(B) an estimate of aggregate cost and energy savings
enabled by the pilot program under this subsection.
(6) Administrative expenses.--Administrative expenses for
the program under this subsection shall not exceed 10 percent
of appropriated funds.
(7) Definition of energy efficient building.--For purposes
of this subsection, the term ``energy efficient building''
means a building that is independently certified--
(A) to meet or exceed the applicable United States Green
Building Council's Leadership in Energy and Environmental
Design standards for a silver, gold, or platinum rating; and
(B) to achieve a reduction in energy consumption of--
(i) at least 25 percent for new construction, compared to
the energy standards set by the Federal Building Code (10 CFR
part 434); and
(ii) at least 20 percent for major renovations, compared to
energy consumption before renovations are begun.
(c) Standardization Report and Program.--
(1) Report.--The Secretary shall enter into an arrangement
with the National Institute of Building Sciences to--
(A) conduct a comprehensive assessment of how well current
voluntary consensus standards related to buildings match
state-of-the-art knowledge on the design, construction,
operation, repair, and renovation of high-performance
buildings; and
(B) recommend steps for the Secretary to take to accelerate
the development and promulgation of voluntary consensus
standards for high-performance buildings that would address
all major high-performance building attributes, including
energy efficiency, sustainability, safety and security, life-
cycle cost, and productivity.
(2) Program.--After receiving the report under paragraph
(1), the Secretary shall establish a program of technical
assistance and grants to support standards development
organizations in--
(A) the revision of existing standards, to reflect current
knowledge of high-performance buildings; and
(B) the development and promulgation of new standards in
areas important to high-performance buildings where there is
no existing standard or where an existing standard cannot
easily be modified.

SEC. 925. INDUSTRIES.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application of advanced technologies to improve the energy
efficiency, environmental performance, and process efficiency
of energy-intensive and waste-intensive industries. Such
program shall be focused on industries whose total annual
energy consumption amounts to more than 1.0 percent of the
total nationwide annual energy consumption, according to the
most recent data available to the Department. Research and
development efforts under this section shall give a higher
priority to broad-benefit efficiency technologies that have
practical application across industry sectors.
(b) Electric Motor Control Technology.--The program
conducted under subsection (a) shall include research on, and
development, demonstration, and commercial application of,
advanced control devices to improve the energy efficiency of
electric motors, including those used in industrial
processes, heating, ventilation, and cooling.

SEC. 926. DEMONSTRATION AND COMMERCIAL APPLICATION.

(a) Appliances and Testing.--The Secretary shall conduct
research and analysis to determine whether, given Department-
sponsored and other advances in energy efficiency
technologies, demonstration and commercial application of
innovative, cost-effective energy savings and pollution
reducing technologies could be used to improve appliances and
test procedures used to measure appliance efficiency.
(b) Building Energy Codes.--The Secretary shall, in
coordination with government, nongovernment, and commercial
partners, conduct research and analyses of the best cost-
effective practices in the development and updating of
building energy codes, including for manufactured housing.
Analyses shall focus on how to encourage energy efficiency
and adoption of newly developed energy production and use
equipment.
(c) Advanced Energy Technology Transfer Centers.--
(1) Grants.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall make grants to
nonprofit institutions, State and local governments, or
universities (or consortia thereof), to establish a
geographically dispersed network of Advanced Energy
Technology Transfer Centers, to be located in areas the
Secretary determines have the greatest need of the services
of such Centers.
(2) Activities.--
(A) In general.--Each Center shall operate a program to
encourage demonstration and commercial application of
advanced energy methods and technologies through education
and outreach to building and industrial professionals, and to
other individuals and organizations with an interest in
efficient energy use.
(B) Advisory panel.--Each Center shall establish an
advisory panel to advise the Center on how best to accomplish
the activities under subparagraph (A).
(3) Application.--A person seeking a grant under this
subsection shall submit to the Secretary an application in
such form and containing such information as the Secretary
may require. The Secretary may award a grant under this
subsection to an entity already in existence if the entity is
otherwise eligible under this subsection.
(4) Selection criteria.--The Secretary shall award grants
under this subsection on the basis of the following criteria,
at a minimum:
(A) The ability of the applicant to carry out the
activities in paragraph (2).
(B) The extent to which the applicant will coordinate the
activities of the Center with other entities, such as State
and local governments, utilities, and educational and
research institutions.
(5) Matching funds.--The Secretary shall require a non-
Federal matching requirement of at least 50 percent of the
costs of establishing and operating each Center.

[[Page H2255]]

(6) Advisory committee.--The Secretary shall establish an
advisory committee to advise the Secretary on the
establishment of Centers under this subsection. The advisory
committee shall be composed of individuals with expertise in
the area of advanced energy methods and technologies,
including at least 1 representative from--
(A) State or local energy offices;
(B) energy professionals;
(C) trade or professional associations;
(D) architects, engineers, or construction professionals;
(E) manufacturers;
(F) the research community; and
(G) nonprofit energy or environmental organizations.
(7) Definitions.--For purposes of this subsection:
(A) Advanced energy methods and technologies.--The term
``advanced energy methods and technologies'' means all
methods and technologies that promote energy efficiency and
conservation, including distributed generation technologies,
and life-cycle analysis of energy use.
(B) Center.--The term ``Center'' means an Advanced Energy
Technology Transfer Center established pursuant to this
subsection.
(C) Distributed generation.--The term ``distributed
generation'' means an electric power generation facility that
is designed to serve retail electric consumers at or near the
facility site.
(d) Report.--Not later than 2 years after the date of
enactment of this Act, and once every 3 years thereafter, the
Secretary shall transmit to Congress a report on the results
of research and analysis under this section. In calculating
cost-effectiveness for purposes of such reports, the
Secretary shall include, at a minimum, the avoided cost of
additional energy production, savings to the economy from
lower peak energy prices and reduced price volatility, and
the public and private benefits of reduced pollution.

SEC. 927. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

(a) Definitions.--For purposes of this section:
(1) Associated equipment.--The term ``associated
equipment'' means equipment located where the batteries will
be used that is necessary to enable the use of the energy
stored in the batteries.
(2) Battery.--The term ``battery'' means an energy storage
device that previously has been used to provide motive power
in a vehicle powered in whole or in part by electricity.
(b) Program.--The Secretary shall establish and conduct a
research, development, demonstration, and commercial
application program for the secondary use of batteries if the
Secretary finds that there are sufficient numbers of such
batteries to support the program. The program shall be--
(1) designed to demonstrate the use of batteries in
secondary applications, including utility and commercial
power storage and power quality;
(2) structured to evaluate the performance, including
useful service life and costs, of such batteries in field
operations, and the necessary supporting infrastructure,
including reuse and disposal of batteries; and
(3) coordinated with ongoing secondary battery use programs
at the National Laboratories and in industry.
(c) Solicitation.--Not later than 180 days after the date
of enactment of this Act, if the Secretary finds under
subsection (b) that there are sufficient numbers of batteries
to support the program, the Secretary shall solicit proposals
to demonstrate the secondary use of batteries and associated
equipment and supporting infrastructure in geographic
locations throughout the United States. The Secretary may
make additional solicitations for proposals if the Secretary
determines that such solicitations are necessary to carry out
this section.
(d) Selection of Proposals.--
(1) In general.--The Secretary shall, not later than 90
days after the closing date established by the Secretary for
receipt of proposals under subsection (c), select up to 5
proposals which may receive financial assistance under this
section, subject to the availability of appropriations.
(2) Diversity; environmental effect.--In selecting
proposals, the Secretary shall consider diversity of battery
type, geographic and climatic diversity, and life-cycle
environmental effects of the approaches.
(3) Limitation.--No 1 project selected under this section
shall receive more than 25 percent of the funds authorized
for the program under this section.
(4) Optimization of federal resources.--The Secretary shall
consider the extent of involvement of State or local
government and other persons in each demonstration project to
optimize use of Federal resources.
(5) Other criteria.--The Secretary may consider such other
criteria as the Secretary considers appropriate.
(e) Conditions.--The Secretary shall require that--
(1) relevant information be provided to the Department, the
users of the batteries, the proposers, and the battery
manufacturers;
(2) the proposer provide at least 50 percent of the costs
associated with the proposal; and
(3) the proposer provide to the Secretary such information
regarding the disposal of the batteries as the Secretary may
require to ensure that the proposer disposes of the batteries
in accordance with applicable law.

SEC. 928. NEXT GENERATION LIGHTING INITIATIVE.

(a) In General.--The Secretary shall carry out a Next
Generation Lighting Initiative in accordance with this
section to support research, development, demonstration, and
commercial application activities related to advanced solid-
state lighting technologies based on white light emitting
diodes.
(b) Objectives.--The objectives of the initiative shall be
to develop advanced solid-state organic and inorganic
lighting technologies based on white light emitting diodes
that, compared to incandescent and fluorescent lighting
technologies, are longer lasting; more energy-efficient; and
cost-competitive, and have less environmental impact.
(c) Industry Alliance.--The Secretary shall, not later than
3 months after the date of enactment of this section,
competitively select an Industry Alliance to represent
participants that are private, for-profit firms which, as a
group, are broadly representative of United States solid
state lighting research, development, infrastructure, and
manufacturing expertise as a whole.
(d) Research.--
(1) In general.--The Secretary shall carry out the research
activities of the Next Generation Lighting Initiative through
competitively awarded grants to researchers, including
Industry Alliance participants, National Laboratories, and
institutions of higher education.
(2) Assistance from the industry alliance.--The Secretary
shall annually solicit from the Industry Alliance--
(A) comments to identify solid-state lighting technology
needs;
(B) assessment of the progress of the Initiative's research
activities; and
(C) assistance in annually updating solid-state lighting
technology roadmaps.
(3) Availability of information and roadmaps.--The
information and roadmaps under paragraph (2) shall be
available to the public and public response shall be
solicited by the Secretary.
(e) Development, Demonstration, and Commercial
Application.--The Secretary shall carry out a development,
demonstration, and commercial application program for the
Next Generation Lighting Initiative through competitively
selected awards. The Secretary may give preference to
participants of the Industry Alliance selected pursuant to
subsection (c).
(f) Intellectual Property.--The Secretary may require, in
accordance with the authorities provided in section
202(a)(ii) of title 35, United States Code, section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9
of the Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5908), that--
(1) for any new invention resulting from activities under
subsection (d)--
(A) the Industry Alliance members that are active
participants in research, development, and demonstration
activities related to the advanced solid-state lighting
technologies that are the subject of this section shall be
granted first option to negotiate with the invention owner
nonexclusive licenses and royalties for uses of the invention
related to solid-state lighting on terms that are reasonable
under the circumstances; and
(B)(i) for 1 year after a United States patent is issued
for the invention, the patent holder shall not negotiate any
license or royalty with any entity that is not a participant
in the Industry Alliance described in subparagraph (A); and
(ii) during the year described in clause (i), the invention
owner shall negotiate nonexclusive licenses and royalties in
good faith with any interested participant in the Industry
Alliance described in subparagraph (A); and
(2) such other terms as the Secretary determines are
required to promote accelerated commercialization of
inventions made under the Initiative.
(g) National Academy Review.--The Secretary shall enter
into an arrangement with the National Academy of Sciences to
conduct periodic reviews of the Next Generation Lighting
Initiative. The Academy shall review the research priorities,
technical milestones, and plans for technology transfer and
progress towards achieving them. The Secretary shall consider
the results of such reviews in evaluating the information
obtained under subsection (d)(2).
(h) Definitions.--As used 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) Research.--The term ``research'' includes research on
the technologies, materials, and manufacturing processes
required for white light emitting diodes.
(3) Industry alliance.--The term ``Industry Alliance''
means an entity selected by the Secretary under subsection
(c).
(4) White light emitting diode.--The term ``white light
emitting diode'' means a semiconducting package, utilizing
either organic or inorganic materials, that produces white
light using externally applied voltage.

SEC. 929. DEFINITIONS.

For the purposes of this chapter--
(1) the term ``cost-effective'' means resulting in a simple
payback of costs in 10 years or less; and
(2) the term ``whole-buildings approach'' includes, on a
life-cycle basis, the energy use, cost of operations, and
ease of repair or upgrade of a building.

[[Page H2256]]

SEC. 930. AUTHORIZATION OF APPROPRIATIONS.

The following sums are authorized to be appropriated to the
Secretary for the purposes of carrying out this chapter:
(1) For fiscal year 2006, $620,000,000, including--
(A) $200,000,000 for carrying out the vehicles program
under section 923;
(B) $100,000,000 for carrying out the buildings program
under section 924, of which $10,000,000 shall be for the
grant program under section 924(b);
(C) $100,000,000 for carrying out the industries program
under section 925(a);
(D) $2,000,000 for carrying out the electric motor control
technology program under section 925(b);
(E) $10,000,000 for carrying out demonstration and
commercial applications activities under section 926;
(F) $4,000,000 for carrying out the secondary electric
vehicle battery use program under section 927; and
(G) $20,000,000 for carrying out the Next Generation
Lighting Initiative under section 928.
(2) For fiscal year 2007, $700,000,000, including--
(A) $240,000,000 for carrying out the vehicles program
under section 923;
(B) $130,000,000 for carrying out the buildings program
under section 924, of which $10,000,000 shall be for the
grant program under section 924(b);
(C) $115,000,000 for carrying out the industries program
under section 925(a);
(D) $2,000,000 for carrying out the electric motor control
technology program under section 925(b);
(E) $10,000,000 for carrying out demonstration and
commercial applications activities under section 926;
(F) $7,000,000 for carrying out the secondary electric
vehicle battery use program under section 927; and
(G) $30,000,000 for carrying out the Next Generation
Lighting Initiative under section 928.
(3) For fiscal year 2008, $800,000,000, including--
(A) $270,000,000 for carrying out the vehicles program
under section 923;
(B) $160,000,000 for carrying out the buildings program
under section 924, of which $10,000,000 shall be for the
grant program under section 924(b);
(C) $140,000,000 for carrying out the industries program
under section 925(a);
(D) $2,000,000 for carrying out the electric motor control
technology program under section 925(b);
(E) $10,000,000 for carrying out demonstration and
commercial applications activities under section 926;
(F) $7,000,000 for carrying out the secondary electric
vehicle battery use program under section 927; and
(G) $50,000,000 for carrying out the Next Generation
Lighting Initiative under section 928.
(4) For fiscal year 2009, $925,000,000, including--
(A) $310,000,000 for carrying out the vehicles program
under section 923;
(B) $200,000,000 for carrying out the buildings program
under section 924, of which $10,000,000 shall be for the
grant program under section 924(b);
(C) $170,000,000 for carrying out the industries program
under section 925(a);
(D) $10,000,000 for carrying out demonstration and
commercial applications activities under section 926;
(E) $7,000,000 for carrying out the secondary electric
vehicle battery use program under section 927; and
(F) $50,000,000 for carrying out the Next Generation
Lighting Initiative under section 928.
(5) For fiscal year 2010, $1,000,000,000, including--
(A) $340,000,000 for carrying out the vehicles program
under section 923;
(B) $240,000,000 for carrying out the buildings program
under section 924, of which $10,000,000 shall be for the
grant program under section 924(b);
(C) $190,000,000 for carrying out the industries program
under section 925(a);
(D) $10,000,000 for carrying out demonstration and
commercial applications activities under section 926;
(E) $7,000,000 for carrying out the secondary electric
vehicle battery use program under section 927; and
(F) $50,000,000 for carrying out the Next Generation
Lighting Initiative under section 928.

SEC. 931. LIMITATION ON USE OF FUNDS.

None of the funds authorized to be appropriated under this
chapter may be used for--
(1) the issuance and implementation of energy efficiency
regulations;
(2) the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.);
(3) the State Energy Program under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321 et
seq.); or
(4) the Federal Energy Management Program under part 3 of
title V of the National Energy Conservation Policy Act (42
U.S.C. 8251 et seq.).

CHAPTER 2--DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS

SEC. 932. DISTRIBUTED ENERGY.

(a) In General.--The Secretary shall conduct programs of
distributed energy resources and systems reliability and
efficiency research, development, demonstration, and
commercial application to improve the reliability and
efficiency of distributed energy resources and systems,
including activities described in this chapter. The programs
shall address advanced energy technologies and systems and
advanced grid reliability technologies. The programs shall
include the integration of--
(1) renewable energy resources;
(2) fuel cells;
(3) combined heat and power systems;
(4) microturbines;
(5) advanced natural gas turbines;
(6) advanced internal combustion engine generators;
(7) energy storage devices;
(8) interconnection standards, protocols, and equipment;
(9) ancillary equipment for dispatch and control; and
(10) any other energy technologies, as appropriate.
(b) Micro-Cogeneration Energy Technology.--The Secretary
shall make competitive, merit-based grants to consortia for
the development of micro-cogeneration energy technology. The
consortia shall explore--
(1) the use of small-scale combined heat and power in
residential heating appliances; or
(2) the use of excess power to operate other appliances
within the residence and supply excess generated power to the
power grid.
(c) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify performance goals, with
quantifiable 5-year cost and energy savings target levels,
for distributed energy resources and systems, and any other
such goals the Secretary considers appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--
(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.

SEC. 933. ELECTRICITY TRANSMISSION AND DISTRIBUTION AND
ENERGY ASSURANCE.

(a) Program.--The Secretary shall conduct a research,
development, demonstration, and commercial application
program on advanced control devices to improve the energy
efficiency and reliability of the electric transmission and
distribution systems and to protect the Nation against severe
energy supply disruptions. This program shall address, at a
minimum--
(1) advanced energy delivery and storage technologies,
materials, and systems, including new transmission
technologies, such as flexible alternating current
transmission systems, composite conductor materials, and
other technologies that enhance reliability, operational
flexibility, or power-carrying capability;
(2) advanced grid reliability and efficiency technology
development;
(3) technologies contributing to significant load
reductions;
(4) advanced metering, load management, and control
technologies;
(5) technologies to enhance existing grid components;
(6) the development and use of high-temperature
superconductors to--
(A) enhance the reliability, operational flexibility, or
power-carrying capability of electric transmission or
distribution systems; or
(B) increase the efficiency of electric energy generation,
transmission, distribution, or storage systems;
(7) integration of power systems, including systems to
deliver high-quality electric power, electric power
reliability, and combined heat and power;
(8) supply of electricity to the power grid by small-scale,
distributed, and residential-based power generators;
(9) the development and use of advanced grid design,
operation, and planning tools;
(10) any other infrastructure technologies, as appropriate;
and
(11) technology transfer and education.
(b) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify performance goals, with
quantifiable 5-year cost and energy savings target levels,
for electricity transmission and distribution and energy
assurance, and any other such goals the Secretary considers
appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--

[[Page H2257]]

(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.
(c) High Voltage Transmission Lines.--As part of the
program described in subsection (a), the Secretary shall
award a grant to a university research program to design and
test, in consultation with the Tennessee Valley Authority,
state-of-the-art optimization techniques for power flow
through existing high voltage transmission lines.

SEC. 933A. ADVANCED PORTABLE POWER DEVICES.

(a) Program.--The Secretary shall--
(1) establish a research, development, and demonstration
program to develop working models of small scale portable
power devices; and
(2) to the fullest extent practicable, identify and utilize
the resources of universities that have shown expertise with
respect to advanced portable power devices for either
civilian or military use.
(b) Organization.--The universities identified and utilized
under subsection (a)(2) are authorized to establish an
organization to promote small scale portable power devices.
(c) Definition.--For purposes of this section, the term
``small scale portable power device'' means a field
deployable portable mechanical or electromechanical device
that can be used for applications such as communications,
computation, mobility enhancement, weapons systems, optical
devices, cooling, sensors, medical devices and active
biological agent detection systems.

SEC. 934. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The following sums are authorized to be
appropriated to the Secretary for the purposes of carrying
out this chapter:
(1) For fiscal year 2006, $220,000,000.
(2) For fiscal year 2007, $240,000,000.
(3) For fiscal year 2008, $250,000,000.
(4) For fiscal year 2009, $265,000,000.
(5) For fiscal year 2010, $275,000,000.
(b) Micro-Cogeneration Energy Technology.--From the amounts
authorized under subsection (a), $20,000,000 for each of
fiscal years 2006 and 2007 are authorized for activities
under section 932(b).
(c) Electricity Transmission and Distribution and Energy
Assurance.--From the amounts authorized under subsection (a),
the following sums are authorized for activities under
section 933:
(1) For fiscal year 2006, $130,000,000, of which $2,000,000
shall be for the program under section 933(c).
(2) For fiscal year 2007, $140,000,000.
(3) For fiscal year 2008, $150,000,000.
(4) For fiscal year 2009, $160,000,000.
(5) For fiscal year 2010, $165,000,000.

Subtitle D--Renewable Energy

SEC. 935. FINDINGS.

Congress makes the following findings:
(1) Renewable energy is a growth industry around the world.
However, the United States has not been investing as heavily
as other countries, and is losing market share.
(2) Since 1996, the United States has lost significant
market share in the solar industry, dropping from 44 percent
of the world market to 13 percent in 2003.
(3) In 2003, Japan spent more than $200,000,000 on solar
research, development, demonstration, and commercial
application and other incentives, and Germany provided more
than $750,000,000 in low cost financing for solar
photovoltaic projects. This compares to United States
Government spending of $139,000,000 in 2003 for research,
development, demonstration, and commercial application and
other incentives.
(4) Germany and Japan each had domestic photovoltaic
industries that employed more than 10,000 people in 2003,
while in the same year the United States photovoltaics
industry employed only 2,000 people.
(5) The United States is becoming increasingly dependent on
imported energy.
(6) The high cost of fossil fuels is hurting the United
States economy.
(7) Small reductions in peak demand can result in very
large reductions in price, according to energy market
experts.
(8) Although the United States has only 2 percent of the
world's oil reserves and 3 percent of the world's natural gas
reserves, our Nation's renewable energy resources are vast
and largely untapped.
(9) Renewable energy can reduce the demand for imported
energy, reducing costs and decreasing the variability of
energy prices.
(10) By using domestic renewable energy resources, the
United States can reduce the amount of money sent into
unstable regions of the world and keep it in the United
States.
(11) By supporting renewable energy research and
development, and funding demonstration and commercial
application programs for renewable energy, the United States
can create an export industry and improve the balance of
trade.
(12) Renewable energy can significantly reduce the
environmental impacts of energy production.

SEC. 936. DEFINITIONS.

For purposes of this subtitle:
(1) Biobased product.--The term ``biobased product'' means
a product determined by the Secretary to be a commercial or
industrial product (other than food or feed) that is--
(A) composed, in whole or in significant part, of--
(i) biological products;
(ii) renewable domestic agricultural materials (including
plant, animal, and marine materials); or
(iii) forestry materials; and
(B) produced in connection with the conversion of biomass
to energy or fuel.
(2) Cellulosic biomass.--The term ``cellulosic biomass''
means a crop containing lignocellulose or hemicellulose,
including barley grain, grapeseed, forest thinnings, rice
bran, rice hulls, rice straw, soybean matter, sugarcane
bagasse, and any crop grown specifically for the purpose of
producing cellulosic feedstocks.

SEC. 937. PROGRAMS.

(a) In General.--The Secretary shall conduct programs of
renewable energy research, development, demonstration, and
commercial application, including activities described in
this subtitle. Such programs shall be focused on the
following objectives:
(1) Increasing the conversion efficiency of all forms of
renewable energy through improved technologies.
(2) Decreasing the cost of renewable energy generation and
delivery.
(3) Promoting the diversity of the energy supply.
(4) Decreasing the Nation's dependence on foreign energy
supplies.
(5) Improving United States energy security.
(6) Decreasing the environmental impact of energy-related
activities.
(7) Increasing the export of renewable generation equipment
from the United States.
(b) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify renewable energy
performance goals, with quantifiable 5-year cost and energy
savings target levels, for wind power, photovoltaics, solar
thermal systems (including concentrating and solar hot
water), geothermal energy, biomass-based systems, biofuels,
and hydropower, and any other such goals the Secretary
considers appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--
(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.
(c) Public Input.--The Secretary shall consider advice from
industry, universities, and other interested parties through
seeking comments in the Federal Register and other means
before transmitting each report under subsection (b).

SEC. 938. SOLAR.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application for solar energy, including--
(1) photovoltaics;
(2) solar hot water and solar space heating; and
(3) concentrating solar power.
(b) Building Integration.--For photovoltaics, solar hot
water, and space heating, the Secretary shall conduct
research, development, demonstration, and commercial
application to support the development of products that can
be easily integrated into new and existing buildings.
(c) Manufacture.--The Secretary shall conduct research,
development, demonstration, and commercial application of
manufacturing techniques that can produce low-cost, high-
quality solar systems.

SEC. 939. BIOENERGY PROGRAMS.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application for cellulosic biomass, including--
(1) biomass conversion to heat and electricity;
(2) biomass conversion to liquid fuels;
(3) biobased products;
(4) integrated biorefineries that may produce heat,
electricity, liquid fuels, and biobased products;
(5) cross-cutting activities on feedstocks and enzymes; and
(6) life-cycle economic analysis.
(b) Biofuels and Biobased Products.--The objectives of the
biofuels and biobased products programs under paragraphs (2),
(3), and (4) of subsection (a), and of the biorefinery
demonstration program under subsection (c), shall be to
develop, in partnership with industry--
(1) advanced biochemical and thermochemical conversion
technologies capable of making high-value biobased chemical
feedstocks and products, to substitute for petroleum-based
feedstocks and products, biofuels that are price-competitive
with gasoline or diesel in either internal combustion engines
or fuel cell-powered vehicles, and biobased products from a
variety of feedstocks, including grains, cellulosic biomass,
and agricultural byproducts; and
(2) advanced biotechnology processes capable of making
biofuels and biobased products, with emphasis on development
of biorefinery technologies, including enzyme-based
processing technologies.

[[Page H2258]]

(c) Biomass Integrated Refinery Demonstration.--
(1) In general.--The Secretary shall conduct a program to
demonstrate the commercial application of at least 5
integrated biorefineries. The Secretary shall ensure
geographical distribution of biorefinery demonstrations under
this subsection. The Secretary shall not provide more than
$100,000,000 under this subsection for any single biorefinery
demonstration. The Secretary shall award the biorefinery
demonstrations so as to encourage--
(A) the demonstration of a wide variety of cellulosic
biomass feedstocks;
(B) the commercial application of biomass technologies for
a variety of uses, including--
(i) liquid transportation fuels;
(ii) high-value biobased chemicals;
(iii) substitutes for petroleum-based feedstocks and
products; and
(iv) energy in the form of electricity or useful heat; and
(C) the demonstration of the collection and treatment of a
variety of biomass feedstocks.
(2) Proposals.--Not later than 6 months after the date of
enactment of this Act, the Secretary shall solicit proposals
for demonstration of advanced biorefineries. The Secretary
shall select only proposals that--
(A) demonstrate that the project will be able to operate
profitably without direct Federal subsidy after initial
construction costs are paid; and
(B) enable the biorefinery to be easily replicated.
(d) University Biodiesel Program.--The Secretary shall
establish a demonstraton program to determine the feasibility
of the operation of diesel electric power generators, using
biodiesel fuels, with ratings as high as B100 at a university
electric generation facility. The program shall examine--
(1) heat rates of diesel fuels with large quantities of
cellulosic content;
(2) the reliability of operation of various fuel blends;
(3) performance in cold or freezing weather;
(4) stability of fuel after extended storage; and
(5) other criteria, as determined by the Secretary.
(e) Grants.--Of the funds authorized to be appropriated for
activities authorized under this section, not less than
$5,000,000 for each fiscal year shall be made available for
grants to Historically Black Colleges and Universities,
Tribal Colleges, and Hispanic-Serving Institutions.

SEC. 940. WIND.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application for wind energy, including--
(1) low speed wind energy;
(2) offshore wind energy;
(3) testing and verification; and
(4) distributed wind energy generation.
(b) Facility.--The Secretary shall construct and operate a
research and testing facility capable of testing the largest
wind turbines that are expected to be manufactured in the
next 15 years. The Secretary shall consider the need for
testing offshore turbine designs in siting the facility. All
private users of the facility shall be required to pay the
Department all costs associated with their use of the
facility, including capital costs prorated at normal business
amortization rates.
(c) Regional Field Verification Program.--Of the funds
authorized to be appropriated for activities authorized under
this section, not less than $4,000,000 for each fiscal year
shall be made available for the Regional Field Verification
Program of the Department.

SEC. 941. GEOTHERMAL.

The Secretary shall conduct a program of research,
development, demonstration, and commercial application for
geothermal energy. The program shall focus on developing
improved technologies for reducing the costs of geothermal
energy installations, including technologies for--
(1) improving detection of geothermal resources;
(2) decreasing drilling costs;
(3) decreasing maintenance costs through improved
materials;
(4) increasing the potential for other revenue sources,
such as mineral production; and
(5) increasing the understanding of reservoir life cycle
and management.

SEC. 942. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

(a) In General.--The Secretary shall establish a program of
grants to States to demonstrate advanced photovoltaic
technology.
(b) Requirements.--(1) To receive funding under the program
under this section, a State must submit a proposal that
demonstrates, to the satisfaction of the Secretary, that the
State will meet the requirements of subsection (f).
(2) If a State has received funding under this section for
the preceding year, the State must demonstrate, to the
satisfaction of the Secretary, that it complied with the
requirements of subsection (f) in carrying out the program
during that preceding year, and that it will do so in the
future.
(3) Except as provided in subsection (c), each State
submitting a qualifying proposal shall receive funding under
the program based on the proportion of United States
population in the State according to the 2000 census. In each
fiscal year, the portion of funds attributable under this
paragraph to States that have not submitted qualifying
proposals in the time and manner specified by the Secretary
shall be distributed pro rata to the States that have
submitted qualifying proposals in the specified time and
manner.
(c) Competition.--If more than $80,000,000 is available for
the program under this section for any fiscal year, the
Secretary shall allocate 75 percent of the funds available
according to subsection (b), and shall award the remaining 25
percent on a competitive basis to the States with the
proposals the Secretary considers most likely to encourage
the widespread adoption of photovoltaic technologies.
(d) Proposals.--Not later than 6 months after the date of
enactment of this Act, and in each subsequent fiscal year for
the life of the program, the Secretary shall solicit
proposals from the States to participate in the program under
this section.
(e) Competitive Criteria.--In awarding funds in a
competitive allocation under subsection (c), the Secretary
shall consider--
(1) the likelihood of a proposal to encourage the
demonstration of, or lower the costs of, advanced
photovoltaic technologies; and
(2) the extent to which a proposal is likely to--
(A) maximize the amount of photovoltaics demonstrated;
(B) maximize the proportion of non-Federal cost share; and
(C) limit State administrative costs.
(f) State Program.--A program operated by a State with
funding under this section shall provide competitive awards
for the demonstration of advanced photovoltaic technologies.
Each State program shall--
(1) require a contribution of at least 60 percent per award
from non-Federal sources, which may include any combination
of State, local, and private funds, except that at least 10
percent of the funding must be supplied by the State;
(2) limit awards for any single project to a maximum of
$1,000,000;
(3) prohibit any nongovernmental recipient from receiving
more than $1,000,000 per year;
(4) endeavor to fund recipients in the commercial,
industrial, institutional, governmental, and residential
sectors;
(5) limit State administrative costs to no more than 10
percent of the grant;
(6) report annually to the Department on--
(A) the amount of funds disbursed;
(B) the amount of photovoltaics purchased; and
(C) the results of the monitoring under paragraph (7);
(7) provide for measurement and verification of the output
of a representative sample of the photovoltaics systems
demonstrated throughout the average working life of the
systems, or at least 20 years; and
(8) require that applicant buildings must have received an
independent energy efficiency audit during the 6-month period
preceding the filing of the application.
(g) Unexpended Funds.--If a State fails to expend any funds
received under subsection (b) or (c) within 3 years of
receipt, such remaining funds shall be returned to the
Treasury.
(h) Reports.--The Secretary shall report to Congress 5
years after funds are first distributed to the States under
this section--
(1) the amount of photovoltaics demonstrated;
(2) the number of projects undertaken;
(3) the administrative costs of the program;
(4) the amount of funds that each State has not received
because of a failure to submit a qualifying proposal, as
described in subsection (b)(3);
(5) the results of the monitoring under subsection (f)(7);
and
(6) the total amount of funds distributed, including a
breakdown by State.

SEC. 943. ADDITIONAL PROGRAMS.

(a) In General.--The Secretary may conduct research,
development, demonstration, and commercial application
programs of--
(1) ocean energy, including wave energy;
(2) kinetic hydro turbines; and
(3) the combined use of renewable energy technologies with
one another and with other energy technologies.
(b) Marine Renewable Energy Study.--
(1) Study.--The Secretary shall enter into an arrangement
with the National Academy of Sciences to conduct a study on--
(A) the feasibility of various methods of renewable
generation of energy from the ocean, including energy from
waves, tides, currents, and thermal gradients; and
(B) the research, development, demonstration, and
commercial application activities required to make marine
renewable energy generation competitive with other forms of
electricity generation.
(2) Transmittal.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit the study
to Congress along with the Secretary's recommendations for
implementing the results of the study.
(c) Renewable Energy in Public Buildings.--
(1) Demonstration and technology transfer program.--The
Secretary shall establish a program for the demonstration of
innovative technologies for solar and other renewable energy
sources in buildings owned or operated by a State or local
government, and for the dissemination of information
resulting from such demonstration to interested parties.

[[Page H2259]]

(2) Limit on federal funding.--The Secretary shall provide
under this subsection no more than 40 percent of the
incremental costs of the solar or other renewable energy
source project funded.
(3) Requirement.--As part of the application for awards
under this subsection, the Secretary shall require all
applicants--
(A) to demonstrate a continuing commitment to the use of
solar and other renewable energy sources in buildings they
own or operate; and
(B) to state how they expect any award to further their
transition to the significant use of renewable energy.

SEC. 944. ANALYSIS AND EVALUATION.

(a) In General.--The Secretary shall conduct analysis and
evaluation in support of the renewable energy programs under
this subtitle. These activities shall be used to guide budget
and program decisions, and shall include--
(1) economic and technical analysis of renewable energy
potential, including resource assessment;
(2) analysis of past program performance, both in terms of
technical advances and in market introduction of renewable
energy; and
(3) any other analysis or evaluation that the Secretary
considers appropriate.
(b) Funding.--The Secretary may designate up to 1 percent
of the funds appropriated for carrying out this subtitle for
analysis and evaluation activities under this section.

SEC. 945. AUTHORIZATION OF APPROPRIATIONS.

The following sums are authorized to be appropriated to the
Secretary for the purposes of carrying out this subtitle:
(1) For fiscal year 2006, $465,000,000, of which--
(A) $100,000,000 shall be for carrying out the solar
program under section 938;
(B) $200,000,000 shall be for carrying out the bioenergy
program under section 939, including $100,000,000 for the
biorefinery demonstration program under section 939(c);
(C) $55,000,000 shall be for carrying out the wind program
under section 940, including $10,000,000 for the facility
described in section 940(b);
(D) $30,000,000 shall be for carrying out the geothermal
program under section 941; and
(E) $50,000,000 shall be for carrying out the photovoltaic
demonstration program under section 942.
(2) For fiscal year 2007, $605,000,000, of which--
(A) $140,000,000 shall be for carrying out the solar
program under section 938;
(B) $245,000,000 shall be for carrying out the bioenergy
program under section 939, including $125,000,000 for the
biorefinery demonstration program under section 939(c);
(C) $60,000,000 shall be for carrying out the wind program
under section 940, including $15,000,000 for the facility
described in section 940(b);
(D) $30,000,000 shall be for carrying out the geothermal
program under section 941; and
(E) $100,000,000 shall be for carrying out the photovoltaic
demonstration program under section 942.
(3) For fiscal year 2008, $775,000,000, of which--
(A) $200,000,000 shall be for carrying out the solar
program under section 938;
(B) $310,000,000 shall be for carrying out the bioenergy
program under section 939, including $150,000,000 for the
biorefinery demonstration program under section 939(c);
(C) $65,000,000 shall be for carrying out the wind program
under section 940, including $10,000,000 for the facility
described in section 940(b);
(D) $30,000,000 shall be for carrying out the geothermal
program under section 941; and
(E) $150,000,000 shall be for carrying out the photovoltaic
demonstration program under section 942.
(4) For fiscal year 2009, $940,000,000, of which--
(A) $250,000,000 shall be for carrying out the solar
program under section 938;
(B) $355,000,000 shall be for carrying out the bioenergy
program under section 939, including $175,000,000 for the
biorefinery demonstration program under section 939(c);
(C) $65,000,000 shall be for carrying out the wind program
under section 940, including $5,000,000 for the facility
described in section 940(b);
(D) $30,000,000 shall be for carrying out the geothermal
program under section 941; and
(E) $200,000,000 shall be for carrying out the photovoltaic
demonstration program under section 942.
(5) For fiscal year 2010, $1,125,000,000, of which--
(A) $300,000,000 shall be for carrying out the solar
program under section 938;
(B) $400,000,000 shall be for carrying out the bioenergy
program under section 939, including $200,000,000 for the
biorefinery demonstration program under section 939(c);
(C) $65,000,000 shall be for carrying out the wind program
under section 940, including $1,000,000 for the facility
described in section 940(b);
(D) $30,000,000 shall be for carrying out the geothermal
program under section 941; and
(E) $300,000,000 shall be for carrying out the photovoltaic
demonstration program under section 942.

Subtitle E--Nuclear Energy Programs

SEC. 946. DEFINITION.

In this subtitle, the term ``junior faculty'' means a
faculty member who was awarded a doctorate less than 10 years
before receipt of an award from the grant program described
in section 949(b)(2).

SEC. 947. PROGRAMS.

(a) In General.--The Secretary shall conduct programs of
civilian nuclear energy research, development, demonstration,
and commercial application, including activities described in
this subtitle. Programs under this subtitle shall be focused
on--
(1) enhancing nuclear power's viability as part of the
United States energy portfolio;
(2) providing the technical means to reduce the likelihood
of nuclear proliferation;
(3) maintaining a cadre of nuclear scientists and
engineers;
(4) maintaining National Laboratory and university nuclear
programs, including their infrastructure;
(5) supporting both individual researchers and
multidisciplinary teams of researchers to pioneer new
approaches in nuclear energy, science, and technology;
(6) developing, planning, constructing, acquiring, and
operating special equipment and facilities for the use of
researchers;
(7) supporting technology transfer and other appropriate
activities to assist the nuclear energy industry, and other
users of nuclear science and engineering, including
activities addressing reliability, availability,
productivity, component aging, safety, and security of
nuclear power plants; and
(8) reducing the environmental impact of nuclear energy-
related activities.
(b) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify performance goals, with
quantifiable 5-year cost improvement and reliability,
availability, productivity, and component aging target levels
for a wide range of nuclear energy technologies, and any
other such goals the Secretary considers appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--
(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.
(c) Public Input.--The Secretary shall consider advice from
industry, universities, and other interested parties through
seeking comments in the Federal Register and other means
before transmitting each report under subsection (b).

CHAPTER 1--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 948. ADVANCED FUEL RECYCLING PROGRAM.

(a) In General.--The Secretary shall conduct an advanced
fuel recycling technology research, development,
demonstration, and commercial application program to evaluate
fuel recycling or transmutation technologies which are
proliferation-resistant and minimize environmental and public
health and safety impacts, as an alternative to aqueous
reprocessing technologies deployed as of the date of
enactment of this Act, in support of evaluation of
alternative national strategies for spent nuclear fuel and
advanced reactor concepts. The program shall be subject to
annual review by the Secretary's Nuclear Energy Research
Advisory Committee or other independent entity, as
appropriate.
(b) International Cooperation.--The Secretary shall seek
opportunities to engage international partners with expertise
in advanced fuel recycling technologies where such
partnerships may help achieve program goals.

SEC. 949. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

(a) In General.--The Secretary shall conduct a program to
invest in human resources and infrastructure in the nuclear
sciences and related fields, including health physics,
nuclear engineering, and radiochemistry, consistent with
Departmental missions related to civilian nuclear research,
development, demonstration, and commercial application.
(b) Requirements.--In carrying out the program under this
section, the Secretary shall--
(1) conduct a graduate and undergraduate fellowship program
to attract new and talented students, which may include
fellowships for students to spend time at National
Laboratories in the areas of nuclear science, engineering,
and health physics with a member of the National Laboratory
staff acting as a mentor;
(2) conduct a junior faculty research initiation grant
program to assist universities in recruiting and retaining
new faculty in the nuclear sciences and engineering by
awarding grants to junior faculty for research on issues
related to nuclear energy engineering and science;
(3) support fundamental nuclear sciences, engineering, and
health physics research through a nuclear engineering
education and research program;
(4) encourage collaborative nuclear research among
industry, National Laboratories, and universities; and
(5) support communication and outreach related to nuclear
science, engineering, and health physics.

[[Page H2260]]

(c) Strengthening University Research and Training Reactors
and Associated Infrastructure.--In carrying out the program
under this section, the Secretary may support--
(1) converting research reactors from high-enrichment fuels
to low-enrichment fuels and upgrading operational
instrumentation;
(2) consortia of universities to broaden access to
university research reactors;
(3) student training programs, in collaboration with the
United States nuclear industry, in relicensing and upgrading
reactors, including through the provision of technical
assistance; and
(4) reactor improvements as part of a focused effort that
emphasizes research, training, and education, including
through the Innovations in Nuclear Infrastructure and
Education Program or any similar program.
(d) Operations and Maintenance.--Funding for a project
provided under this section may be used for a portion of the
operating and maintenance costs of a research reactor at a
university used in the project.

SEC. 950. UNIVERSITY-NATIONAL LABORATORY INTERACTIONS.

The Secretary shall conduct--
(1) a fellowship program for professors at universities to
spend sabbaticals 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.

SEC. 951. NUCLEAR POWER 2010 PROGRAM.

The Secretary shall carry out a Nuclear Power 2010 Program,
consistent with recommendations in the October 2001 report
entitled ``A Roadmap to Deploy New Nuclear Power Plants in
the United States by 2010'' issued by the Nuclear Energy
Research Advisory Committee of the Department. The Program
shall include--
(1) the expertise and capabilities of industry,
universities, and National Laboratories in evaluation of
advanced nuclear fuel cycles and fuels testing;
(2) a variety of reactor designs suitable for both
developed and developing nations;
(3) participation of international collaborators in
research, development, and design efforts as appropriate; and
(4) university and industry participation.

SEC. 952. GENERATION IV NUCLEAR ENERGY SYSTEMS INITIATIVE.

The Secretary shall carry out a Generation IV Nuclear
Energy Systems Initiative to develop an overall technology
plan and to support research, development, demonstration, and
commercial application necessary to make an informed
technical decision about the most promising candidates for
the eventual commercial application of advanced fission
reactor technology for the generation of electricity. The
Initiative shall examine advanced proliferation-resistant and
passively safe reactor designs, including designs that--
(1) are economically competitive with other electric power
generation plants;
(2) have higher efficiency, lower cost, and improved safety
compared to reactors in operation on the date of enactment of
this Act;
(3) use fuels that are proliferation-resistant and have
substantially reduced production of high-level waste per unit
of output; and
(4) use improved instrumentation.

SEC. 953. CIVILIAN INFRASTRUCTURE AND FACILITIES.

The Secretary shall operate and maintain infrastructure and
facilities to support the nuclear energy research,
development, demonstration, and commercial application
programs, including radiological facilities management,
isotope production, and facilities management.

SEC. 954. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT
INFRASTRUCTURE PLAN.

In carrying out section 919, the Secretary shall--
(1) develop an inventory of nuclear science and engineering
facilities, equipment, expertise, and other assets at all of
the National Laboratories;
(2) develop a prioritized list of nuclear science and
engineering plant and equipment improvements needed at each
of the National Laboratories;
(3) consider the available facilities and expertise at all
National Laboratories and emphasize investments which
complement rather than duplicate capabilities; and
(4) develop a timeline and a proposed budget for the
completion of deferred maintenance on plant and equipment,

with the goal of ensuring that Department programs under this
subtitle will be generally recognized to be among the best in
the world.

SEC. 955. IDAHO NATIONAL LABORATORY FACILITIES PLAN.

(a) Plan.--The Secretary shall develop a comprehensive plan
for the facilities at the Idaho National Laboratory,
especially taking into account the resources available at
other National Laboratories. In developing the plan, the
Secretary shall--
(1) evaluate the facilities planning processes utilized by
other physical science and engineering research and
development institutions, both in the United States and
abroad, that are generally recognized as being among the best
in the world, and consider how those processes might be
adapted toward developing such facilities plan;
(2) avoid duplicating, moving, or transferring nuclear
science and engineering facilities, equipment, expertise, and
other assets that currently exist at other National
Laboratories;
(3) consider the establishment of a national transuranic
analytic chemistry laboratory as a user facility at the Idaho
National Laboratory;
(4) include a plan to develop, if feasible, the Advanced
Test Reactor and Test Reactor Area into a user facility that
is more readily accessible to academic and industrial
researchers;
(5) consider the establishment of a fast neutron source as
a user facility;
(6) consider the establishment of new ``hot cells'' and the
configuration of ``hot cells'' most likely to advance
research, development, demonstration, and commercial
application in nuclear science and engineering, especially in
the context of the condition and availability of these
facilities elsewhere in the National Laboratories; and
(7) include a timeline and a proposed budget for the
completion of deferred maintenance on plant and equipment.
(b) Transmittal to Congress.--Not later than one year after
the date of enactment of this Act, the Secretary shall
transmit such plan to Congress.

SEC. 956. AUTHORIZATION OF APPROPRIATIONS.

(a) Program Authorization.--The following sums are
authorized to be appropriated to the Secretary for the
purposes of carrying out this chapter:
(1) $407,000,000 for fiscal year 2006.
(2) $427,000,000 for fiscal year 2007.
(3) $449,000,000 for fiscal year 2008.
(4) $471,000,000 for fiscal year 2009.
(5) $495,000,000 for fiscal year 2010.
(b) University Support.--Of the funds authorized under
subsection (a), the following sums are authorized to be
appropriated to carry out section 949:
(1) $35,200,000 for fiscal year 2006.
(2) $44,350,000 for fiscal year 2007.
(3) $49,200,000 for fiscal year 2008.
(4) $55,000,000 for fiscal year 2009.
(5) $60,000,000 for fiscal year 2010.

CHAPTER 2--NEXT GENERATION NUCLEAR PLANT PROGRAM

SEC. 957. DEFINITIONS.

For purposes of this chapter:
(1) Construction.--The term ``construction'' means the
physical construction of the demonstration plant, and the
physical construction, purchase, or manufacture of equipment
or components that are specifically designed for the
demonstration plant, but does not mean the design of the
facility, equipment, or components.
(2) Demonstration plant.--The term ``demonstration plant''
means an advanced fission reactor power plant constructed and
operated in accordance with this chapter.
(3) Operation.--The term ``operation'' means the operation
of the demonstration plant, including general maintenance and
provision of power, heating and cooling, and other building
services that are specifically for the demonstration plant,
but does not mean operations that support other activities
colocated with the demonstration plant.

SEC. 958. NEXT GENERATION NUCLEAR POWER PLANT.

(a) In General.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application of advanced nuclear fission reactor technology.
The objective of this program shall be to demonstrate the
technical and economic feasibility of an advanced nuclear
fission reactor power plant design for the commercial
production of electricity.
(b) Research and Development.--The program shall include
research, development, design, planning, and all other
necessary activities to support the construction and
operation of the demonstration plant.
(c) Subsystem Demonstrations.--The Secretary shall support
demonstration of enabling technologies and subsystems and
other research, development, demonstration, and commercial
application activities necessary to support the activities in
this chapter.
(d) Construction and Operation.--The program shall
culminate in the construction and operation of the
demonstration plant based on a design selected by the
Secretary in accordance with procedures described in the plan
required by section 960(c). The demonstration plant shall be
located and constructed within the United States and shall be
operational, and capable of demonstrating the commercial
production of electricity, by December 31, 2015.
(e) Limitation.--No funds shall be expended for the
construction or operation of the demonstration plant until 90
days have elapsed after the transmission of the plan
described in section 960(c).

SEC. 959. ADVISORY COMMITTEE.

The Secretary shall appoint a Next Generation Nuclear Power
Plant Subcommittee of the Nuclear Energy Research Advisory
Council to provide advice to the Secretary on technical
matters and program management for the duration of the
program and construction project under this chapter.

SEC. 960. PROGRAM REQUIREMENTS.

(a) Partnerships.--In carrying out the program under this
chapter, the Secretary shall make use of partnerships with
industry for the research, development, design, construction,
and operation of the demonstration plant. In establishing
such partnerships, the Secretary shall give preference to
companies for which the principal base of operations is
located in the United States.

[[Page H2261]]

(b) International Collaboration.--(1) The Secretary shall
seek international cooperation, participation, and financial
contribution in this program, including assistance from
specialists or facilities from member countries of the
Generation IV International Forum, the Russian Federation, or
other international partners where such specialists or
facilities provide access to cost-effective and relevant
skills or test capabilities.
(2) International activities shall be carried out in
consultation with the Generation IV International Forum.
(3) The program may include demonstration of selected
program objectives in a partner nation.
(c) Program Plan.--Not later than one year after the date
of enactment of this Act, the Secretary shall transmit to
Congress a comprehensive program plan. The program plan
shall--
(1) describe the plan for development, selection,
management, ownership, operation, and decommissioning of the
demonstration plant;
(2) identify program milestones and a timeline for
achieving these milestones;
(3) provide for development of risk-based criteria for any
future commercial development of a reactor architecture based
on that of the demonstration plant;
(4) include a projected budget required to meet the
milestones; and
(5) include an explanation of any major program decisions
that deviate from program advice given to the Secretary by
the advisory committee established under section 959.

SEC. 961. AUTHORIZATION OF APPROPRIATIONS.

(a) Research, Development, and Design Programs.--The
following sums are authorized to be appropriated to the
Secretary for the purposes of carrying out this chapter
except for the demonstration plant activities described in
subsection (b):
(1) For fiscal year 2006, $150,000,000.
(2) For fiscal year 2007, $150,000,000.
(3) For fiscal year 2008, $150,000,000.
(4) For fiscal year 2009, $150,000,000.
(5) For fiscal year 2010, $150,000,000.
(b) Reactor Construction.--There are authorized to be
appropriated to the Secretary such sums as may be necessary
for operation and construction of the demonstration plant
under this chapter. The Secretary shall not spend more than
$500,000,000 for demonstration plant reactor construction
activities under this chapter.

Subtitle F--Fossil Energy

CHAPTER 1--RESEARCH PROGRAMS

SEC. 962. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT
PROGRAMS.

(a) In General.--The Secretary shall, in conjunction with
industry, conduct fossil energy research, development,
demonstration, and commercial applications programs,
including activities under this chapter, with the goal of
improving the efficiency, effectiveness, and environmental
performance of fossil energy production, upgrading,
conversion, and consumption. Such programs shall be focused
on--
(1) increasing the conversion efficiency of all forms of
fossil energy through improved technologies;
(2) decreasing the cost of all fossil energy production,
generation, and delivery;
(3) promoting diversity of energy supply;
(4) decreasing the Nation's dependence on foreign energy
supplies;
(5) improving United States energy security;
(6) decreasing the environmental impact of energy-related
activities; and
(7) increasing the export of fossil energy-related
equipment, technology, and services from the United States.
(b) Goals.--
(1) Initial goals.--In accordance with the performance plan
and report requirements in section 4 of the Government
Performance Results Act of 1993, the Secretary shall transmit
to the Congress, along with the President's annual budget
request for fiscal year 2007, a report containing outcome
measures with explicitly stated cost and performance
baselines. The measures shall specify production or
efficiency performance goals, with quantifiable 5-year cost
and energy savings target levels, for fossil energy, and any
other such goals the Secretary considers appropriate.
(2) Subsequent transmittals.--The Secretary shall transmit
to the Congress, along with the President's annual budget
request for each fiscal year after 2007, a report
containing--
(A) a description, including quantitative analysis, of
progress in achieving performance goals transmitted under
paragraph (1), as compared to the baselines transmitted under
paragraph (1); and
(B) any amendments to such goals.
(c) Covered Activities.--The Secretary shall ensure that
the goals stated in subsection (b) are illustrative of the
outcomes necessary to promote acceptance of the programs'
efforts in the marketplace, but at a minimum shall encompass
the following areas:
(1) Coal gasifiers.
(2) Turbine generators, including both natural gas and
syngas fueled.
(3) Oxygen separation devices, hydrogen separation devices,
and carbon dioxide separation technologies.
(4) Coal gas and post-combustion emission cleanup and
disposal equipment, including carbon dioxide capture and
disposal equipment.
(5) Average per-foot drilling costs for oil and gas,
segregated by appropriate drilling regimes, including onshore
versus offshore and depth categories.
(6) Production of liquid fuels from nontraditional
feedstocks, including syngas, biomass, methane, and
combinations thereof.
(7) Environmental discharge per barrel of oil or oil-
equivalent production, including reinjected waste.
(8) Surface disturbance on both a per-well and per-barrel
of oil or oil-equivalent production basis.
(d) Public Input.--The Secretary shall consider advice from
industry, universities, and other interested parties through
seeking comments in the Federal Register and other means
before transmitting each report under subsection (b).

SEC. 963. FOSSIL RESEARCH AND DEVELOPMENT.

(a) Objectives.--The Secretary shall conduct a program of
fossil research, development, demonstration, and commercial
application, whose objective shall be to reduce emissions
from fossil fuel use by developing technologies, including
precombustion technologies, by 2015 with the capability of--
(1) dramatically increasing electricity generating
efficiencies of coal and natural gas;
(2) improving combined heat and power thermal efficiencies;
(3) improving fuels utilization efficiency of production of
liquid transportation fuels from coal;
(4) achieving near-zero emissions of mercury and of
emissions that form fine particles, smog, and acid rain;
(5) reducing carbon dioxide emissions by at least 40
percent through efficiency improvements and by 100 percent
with sequestration; and
(6) improved reliability, efficiency, reductions of air
pollutant emissions, and reductions in solid waste disposal
requirements.
(b) Coal-Based Projects.--The coal-based projects
authorized under this section shall be consistent with the
objective stated in subsection (a). The program shall
emphasize carbon capture and sequestration technologies and
gasification technologies, including gasification combined
cycle, gasification fuel cells, gasification coproduction,
hybrid gasification/combustion, or other technologies with
the potential to address the capabilities described in
paragraphs (4) and (5) of subsection (a).

SEC. 964. OIL AND GAS RESEARCH AND DEVELOPMENT.

The Secretary shall conduct a program of oil and gas
research, development, demonstration, and commercial
application, whose objective shall be to advance the science
and technology available to domestic petroleum producers,
particularly independent operators, to minimize the economic
dislocation caused by the decline of domestic supplies of oil
and natural gas resources by focusing research on--
(1) assisting small domestic producers of oil and gas to
develop new and improved technologies to discover and extract
additional supplies;
(2) developing technologies to extract methane hydrates in
an environmentally sound manner;
(3) improving the ability of the domestic industry to
extract hydrocarbons from known reservoirs and classes of
reservoirs; and
(4) reducing the cost, and improving the efficiency and
environmental performance, of oil and gas exploration and
extraction activities, focusing especially on unconventional
sources such as tar sands, heavy oil, and shale oil.

SEC. 965. TRANSPORTATION FUELS.

The Secretary shall conduct a program of transportation
fuels research, development, demonstration, and commercial
application, whose objective shall be to increase the price
elasticity of oil supply and demand by focusing research on--
(1) reducing the cost of producing transportation fuels
from coal and natural gas; and
(2) indirect liquefaction of coal and biomass.

SEC. 966. FUEL CELLS.

(a) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application of fuel cells for low-cost, high-efficiency,
fuel-flexible, modular power systems.
(b) Demonstration.--The program under this section shall
include demonstration of fuel cell proton exchange membrane
technology for commercial, residential, and transportation
applications, and distributed generation systems, utilizing
improved manufacturing production and processes.

SEC. 967. CARBON DIOXIDE CAPTURE RESEARCH AND DEVELOPMENT.

(a) Program.--The Secretary of Energy shall support a 10-
year program of research and development aimed at developing
carbon dioxide capture technologies for pulverized coal
combustion units. The program shall focus on--
(1) developing add-on carbon dioxide capture technologies,
such as adsorption and absorption techniques and chemical
processes, to remove carbon dioxide from flue gas, producing
concentrated streams of carbon dioxide potentially amenable
to sequestration;
(2) combustion technologies that would directly produce
concentrated streams of carbon dioxide potentially amenable
to sequestration; and
(3) increasing the efficiency of the overall combustion
system in order to reduce the amount of carbon dioxide
emissions released from the system per megawatt generated.

[[Page H2262]]

(b) Carbon Sequestration.--In conjunction with the program
under subsection (a), the Secretary shall continue pursuing a
robust carbon sequestration program with the private sector,
through regional carbon sequestration partnerships.

SEC. 968. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The following sums are authorized to be
appropriated to the Secretary for the purposes of carrying
out this chapter:
(1) For fiscal year 2006, $583,000,000.
(2) For fiscal year 2007, $611,000,000.
(3) For fiscal year 2008, $626,000,000.
(4) For fiscal year 2009, $641,000,000.
(5) For fiscal year 2010, $657,000,000.
(b) Allocation.--From amounts authorized under subsection
(a), there are authorized to be appropriated for carrying out
the program under section 967--
(1) $20,000,000 for fiscal year 2006;
(2) $25,000,000 for fiscal year 2007;
(3) $30,000,000 for fiscal year 2008;
(4) $35,000,000 for fiscal year 2009; and
(5) $40,000,000 for fiscal year 2010.

CHAPTER 2--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER
PETROLEUM RESOURCES

SEC. 969. PROGRAM AUTHORITY.

(a) In General.--The Secretary shall carry out a program
under this chapter of research, development, demonstration,
and commercial application of technologies for ultra-
deepwater and unconventional natural gas and other petroleum
resource exploration and production, including addressing the
technology challenges for small producers, safe operations,
and environmental mitigation (including reduction of
greenhouse gas emissions and sequestration of carbon).
(b) Program Elements.--The program under this chapter shall
address the following areas, including improving safety and
minimizing environmental impacts of activities within each
area:
(1) Ultra-deepwater architecture and technology, including
drilling to formations in the Outer Continental Shelf to
depths greater than 15,000 feet.
(2) Unconventional natural gas and other petroleum resource
exploration and production technology.
(3) The technology challenges of small producers.
(4) Complementary research performed by the National Energy
Technology Laboratory for the United States Department of
Energy.
(c) Limitation on Location of Field Activities.--Field
activities under the program under this chapter shall be
carried out only--
(1) in--
(A) areas in the territorial waters of the United States
not under any Outer Continental Shelf moratorium as of
September 30, 2002;
(B) areas onshore in the United States on public land
administered by the Secretary of the Interior available for
oil and gas leasing, where consistent with applicable law and
land use plans; and
(C) areas onshore in the United States on State or private
land, subject to applicable law; and
(2) with the approval of the appropriate Federal or State
land management agency or private land owner.
(d) Activities at the National Energy Technology
Laboratory.--The Secretary, through the National Energy
Technology Laboratory, shall carry out a program of research
and other activities complementary to and supportive of the
research programs under subsection (b).
(e) Consultation With Secretary of the Interior.--In
carrying out this part, the Secretary shall consult regularly
with the Secretary of the Interior.

SEC. 970. ULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL
GAS AND OTHER PETROLEUM RESEARCH AND
DEVELOPMENT PROGRAM.

(a) In General.--The Secretary shall carry out the
activities under section 969, to maximize the value of
natural gas and other petroleum resources of the United
States, by increasing the supply of such resources, through
reducing the cost and increasing the efficiency of
exploration for and production of such resources, while
improving safety and minimizing environmental impacts.
(b) Role of the Secretary.--The Secretary shall have
ultimate responsibility for, and oversight of, all aspects of
the program under this section.
(c) Role of the Program Consortium.--
(1) In general.--The Secretary shall contract with a
consortium to--
(A) manage awards pursuant to subsection (f)(3);
(B) issue project solicitations upon approval of the
Secretary;
(C) make project awards upon approval of the Secretary;
(D) disburse funds awarded under subsection (f) as directed
by the Secretary in accordance with the annual plan under
subsection (e); and
(E) carry out other activities assigned to the program
consortium by this section.
(2) Limitation.--The Secretary may not assign any
activities to the program consortium except as specifically
authorized under this section.
(3) Conflict of interest.--
(A) Procedures.--The Secretary shall establish procedures--
(i) to ensure that each board member, officer, or employee
of the program consortium who is in a decisionmaking capacity
under subsection (f)(3) shall disclose to the Secretary any
financial interests in, or financial relationships with,
applicants for or recipients of awards under this section,
including those of his or her spouse or minor child, unless
such relationships or interests would be considered to be
remote or inconsequential; and
(ii) to require any board member, officer, or employee with
a financial relationship or interest disclosed under clause
(i) to recuse himself or herself from any oversight under
subsection (f)(4) with respect to such applicant or
recipient.
(B) Failure to comply.--The Secretary may disqualify an
application or revoke an award under this section if a board
member, officer, or employee has failed to comply with
procedures required under subparagraph (A)(ii).
(d) Selection of the Program Consortium.--
(1) In general.--The Secretary shall select the program
consortium through an open, competitive process.
(2) Members.--The program consortium may include
corporations, trade associations, institutions of higher
education, National Laboratories, or other research
institutions. After submitting a proposal under paragraph
(4), the program consortium may not add members without the
consent of the Secretary.
(3) Tax status.--The program consortium shall be an entity
that is exempt from tax under section 501(c)(3) of the
Internal Revenue Code of 1986 on the date of enactment of
this Act.
(4) Schedule.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall solicit proposals
from eligible consortia to perform the duties in subsection
(c)(1), which shall be submitted not later than 180 days
after the date of enactment of this Act. The Secretary shall
select the program consortium not later than 270 days after
such date of enactment.
(5) Application.--Applicants shall submit a proposal
including such information as the Secretary may require. At a
minimum, each proposal shall--
(A) list all members of the consortium;
(B) fully describe the structure of the consortium,
including any provisions relating to intellectual property;
and
(C) describe how the applicant would carry out the
activities of the program consortium under this section.
(6) Eligibility.--To be eligible to be selected as the
program consortium, an applicant must be an entity whose
members have collectively demonstrated capabilities and
experience in planning and managing research, development,
demonstration, and commercial application programs for ultra-
deepwater and unconventional natural gas or other petroleum
exploration or production.
(7) Focus areas for awards.--
(A) Ultra-deepwater resources.--Awards from allocations
under section 976(d)(1) shall focus on the development and
demonstration of individual exploration and production
technologies as well as integrated systems technologies
including new architectures for production in ultra-
deepwater.
(B) Unconventional resources.--Awards from allocations
under section 976(d)(2) shall focus on areas including
advanced coalbed methane, deep drilling, natural gas
production from tight sands, natural gas production from gas
shales, stranded gas, innovative exploration and production
techniques, enhanced recovery techniques, and environmental
mitigation of unconventional natural gas and other petroleum
resources exploration and production.
(C) Small producers.--Awards from allocations under section
976(d)(3) shall be made to consortia consisting of small
producers or organized primarily for the benefit of small
producers, and shall focus on areas including complex geology
involving rapid changes in the type and quality of the oil
and gas reservoirs across the reservoir; low reservoir
pressure; unconventional natural gas reservoirs in coalbeds,
deep reservoirs, tight sands, or shales; and unconventional
oil reservoirs in tar sands and oil shales.
(8) Criterion.--The Secretary shall consider the amount of
the fee an applicant proposes to receive under subsection (g)
in selecting a consortium under this section.
(e) Annual Plan.--
(1) In general.--The program under this section shall be
carried out pursuant to an annual plan prepared by the
Secretary in accordance with paragraph (2).
(2) Development.--
(A) Solicitation of recommendations.--Before drafting an
annual plan under this subsection, the Secretary shall
solicit specific written recommendations from the program
consortium for each element to be addressed in the plan,
including those described in paragraph (4). The program
consortium shall submit its recommendations in the form of a
draft annual plan.
(B) Submission of recommendations; other comment.--The
Secretary shall submit the recommendations of the program
consortium under subparagraph (A) to the Ultra-Deepwater
Advisory Committee established under section 972(a) and to
the Unconventional Resources Technology Advisory Committee
established under section 972(b), and such Advisory
Committees shall provide to the Secretary written comments by
a date determined by the Secretary. The Secretary may also
solicit comments from any other experts.

[[Page H2263]]

(C) Consultation.--The Secretary shall consult regularly
with the program consortium throughout the preparation of the
annual plan.
(3) Publication.--The Secretary shall transmit to Congress
and publish in the Federal Register the annual plan, along
with any written comments received under paragraph (2)(A) and
(B).
(4) Contents.--The annual plan shall describe the ongoing
and prospective activities of the program under this section
and shall include--
(A) a list of any solicitations for awards to carry out
research, development, demonstration, or commercial
application activities, including the topics for such work,
who would be eligible to apply, selection criteria, and the
duration of awards; and
(B) a description of the activities expected of the program
consortium to carry out subsection (f)(3).
(5) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the
Interior, shall provide an annual report to Congress with the
President's budget on the estimated cumulative increase in
Federal royalty receipts (if any) resulting from the
implementation of this part. The initial report under this
paragraph shall be submitted in the first President's budget
following the completion of the first annual plan required
under this subsection.
(f) Awards.--
(1) In general.--Upon approval of the Secretary the program
consortium shall make awards to carry out research,
development, demonstration, and commercial application
activities under the program under this section. The program
consortium shall not be eligible to receive such awards, but
members of the program consortium may receive such awards.
(2) Proposals.--Upon approval of the Secretary the program
consortium shall solicit proposals for awards under this
subsection in such manner and at such time as the Secretary
may prescribe, in consultation with the program consortium.
(3) Oversight.--
(A) In general.--The program consortium shall oversee the
implementation of awards under this subsection, consistent
with the annual plan under subsection (e), including
disbursing funds and monitoring activities carried out under
such awards for compliance with the terms and conditions of
the awards.
(B) Effect.--Nothing in subparagraph (A) shall limit the
authority or responsibility of the Secretary to oversee
awards, or limit the authority of the Secretary to review or
revoke awards.
(g) Administrative Costs.--
(1) In general.--To compensate the program consortium for
carrying out its activities under this section, the Secretary
shall provide to the program consortium funds sufficient to
administer the program. This compensation may include a
management fee consistent with Department of Energy
contracting practices and procedures.
(2) Advance.--The Secretary shall advance funds to the
program consortium upon selection of the consortium, which
shall be deducted from amounts to be provided under paragraph
(1).
(h) Audit.--The Secretary shall retain an independent,
commercial auditor to determine the extent to which funds
provided to the program consortium, and funds provided under
awards made under subsection (f), have been expended in a
manner consistent with the purposes and requirements of this
part. The auditor shall transmit a report annually to the
Secretary, who shall transmit the report to Congress, along
with a plan to remedy any deficiencies cited in the report.
(i) Activities by the United States Geological Survey.--The
Secretary of the Interior, through the United States
Geological Survey, shall, where appropriate, carry out
programs of long-term research to complement the programs
under this section.

SEC. 971. ADDITIONAL REQUIREMENTS FOR AWARDS.

(a) Demonstration Projects.--An application for an award
under this chapter for a demonstration project shall describe
with specificity the intended commercial use of the
technology to be demonstrated.
(b) Flexibility in Locating Demonstration Projects.--
Subject to the limitation in section 969(c), a demonstration
project under this chapter relating to an ultra-deepwater
technology or an ultra-deepwater architecture may be
conducted in deepwater depths.
(c) Intellectual Property Agreements.--If an award under
this chapter is made to a consortium (other than the program
consortium), the consortium shall provide to the Secretary a
signed contract agreed to by all members of the consortium
describing the rights of each member to intellectual property
used or developed under the award.
(d) Technology Transfer.--2.5 percent of the amount of each
award made under this chapter shall be designated for
technology transfer and outreach activities under this
chapter.
(e) Cost Sharing Reduction for Independent Producers.--In
applying the cost sharing requirements under section 911 to
an award under this chapter the Secretary may reduce or
eliminate the non-Federal requirement if the Secretary
determines that the reduction is necessary and appropriate
considering the technological risks involved in the project.

SEC. 972. ADVISORY COMMITTEES.

(a) Ultra-Deepwater Advisory Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Ultra-Deepwater
Advisory Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) individuals with extensive research experience or
operational knowledge of offshore natural gas and other
petroleum exploration and production;
(B) individuals broadly representative of the affected
interests in ultra-deepwater natural gas and other petroleum
production, including interests in environmental protection
and safe operations;
(C) no individuals who are Federal employees; and
(D) no individuals who are board members, officers, or
employees of the program consortium.
(3) Duties.--The advisory committee under this subsection
shall--
(A) advise the Secretary on the development and
implementation of programs under this chapter related to
ultra-deepwater natural gas and other petroleum resources;
and
(B) carry out section 970(e)(2)(B).
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5,
United States Code.
(b) Unconventional Resources Technology Advisory
Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Unconventional
Resources Technology Advisory Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) a majority of members who are employees or
representatives of independent producers of natural gas and
other petroleum, including small producers;
(B) individuals with extensive research experience or
operational knowledge of unconventional natural gas and other
petroleum resource exploration and production;
(C) individuals broadly representative of the affected
interests in unconventional natural gas and other petroleum
resource exploration and production, including interests in
environmental protection and safe operations;
(D) no individuals who are Federal employees; and
(E) no individuals who are board members, officers, or
employees of the program consortium.
(3) Duties.--The advisory committee under this subsection
shall--
(A) advise the Secretary on the development and
implementation of activities under this chapter related to
unconventional natural gas and other petroleum resources; and
(B) carry out section 970(e)(2)(B).
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5,
United States Code.
(c) Prohibition.--No advisory committee established under
this section shall make recommendations on funding awards to
particular consortia or other entities, or for specific
projects.

SEC. 973. LIMITS ON PARTICIPATION.

An entity shall be eligible to receive an award under this
chapter only if the Secretary finds--
(1) that the entity's participation in the program under
this chapter would be in the economic interest of the United
States; and
(2) that either--
(A) the entity is a United States-owned entity organized
under the laws of the United States; or
(B) the entity is organized under the laws of the United
States and has a parent entity organized under the laws of a
country that affords--
(i) to United States-owned entities opportunities,
comparable to those afforded to any other entity, to
participate in any cooperative research venture similar to
those authorized under this part;
(ii) to United States-owned entities local investment
opportunities comparable to those afforded to any other
entity; and
(iii) adequate and effective protection for the
intellectual property rights of United States-owned entities.

SEC. 974. SUNSET.

The authority provided by this chapter shall terminate on
September 30, 2014.

SEC. 975. DEFINITIONS.

In this part:
(1) Deepwater.--The term ``deepwater'' means a water depth
that is greater than 200 but less than 1,500 meters.
(2) Independent producer of oil or gas.--
(A) In general.--The term ``independent producer of oil or
gas'' means any person that produces oil or gas other than a
person to whom subsection (c) of section 613A of the Internal
Revenue Code of 1986 does not apply by reason of paragraph
(2) (relating to certain retailers) or paragraph (4)
(relating to certain refiners) of section 613A(d) of such
Code.

[[Page H2264]]

(B) Rules for applying paragraphs (2) and (4) of section
613a(d).--For purposes of subparagraph (A), paragraphs (2)
and (4) of section 613A(d) of the Internal Revenue Code of
1986 shall be applied by substituting ``calendar year'' for
``taxable year'' each place it appears in such paragraphs.
(3) Program consortium.--The term ``program consortium''
means the consortium selected under section 970(d).
(4) Remote or inconsequential.--The term ``remote or
inconsequential'' has the meaning given that term in
regulations issued by the Office of Government Ethics under
section 208(b)(2) of title 18, United States Code.
(5) Small producer.--The term ``small producer'' means an
entity organized under the laws of the United States with
production levels of less than 1,000 barrels per day of oil
equivalent.
(6) Ultra-deepwater.--The term ``ultra-deepwater'' means a
water depth that is equal to or greater than 1,500 meters.
(7) Ultra-deepwater architecture.--The term ``ultra-
deepwater architecture'' means the integration of
technologies for the exploration for, or production of,
natural gas or other petroleum resources located at ultra-
deepwater depths.
(8) Ultra-deepwater technology.--The term ``ultra-deepwater
technology'' means a discrete technology that is specially
suited to address 1 or more challenges associated with the
exploration for, or production of, natural gas or other
petroleum resources located at ultra-deepwater depths.
(9) Unconventional natural gas and other petroleum
resource.--The term ``unconventional natural gas and other
petroleum resource'' means natural gas and other petroleum
resource located onshore in an economically inaccessible
geological formation, including resources of small producers.

SEC. 976. FUNDING.

(a) In General.--
(1) Oil and gas lease income.--For each of fiscal years
2005 through 2014, from any excess Federal royalties derived
from Federal onshore and offshore oil and gas leases issued
under the Outer Continental Shelf Lands Act and the Mineral
Leasing Act which are deposited in the Treasury, and after
prior distributions as described in subsection (c) have been
made, all excess Federal royalties up to $200,000,000 shall
be deposited into the Ultra-Deepwater and Unconventional
Natural Gas and Other Petroleum Research Fund (in this
section referred to as the Fund).
(2) Definitions.--For purposes of paragraph (1)--
(A) excess Federal royalty receipts are the amount
calculated on the basis of the difference between the
prevailing market prices upon which the royalty payment was
made and 110 percent of the projected market prices for that
fiscal year, as contained in the economic assumptions
underlying the Concurrent Resolution on the Budget, under
section 301 of the Congressional Budget and Impoundment
Control Act or 1974; and
(B) the term ``royalties'' excludes proceeds from the sale
of royalty production taken in kind and royalty production
that is transferred under section 27(a)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
(b) Obligational Authority.--Monies in the Fund shall be
available to the Secretary for obligation under this chapter
without fiscal year limitation, to remain available until
expended.
(c) Prior Distributions.--The distributions described in
subsection (a) are those required by law--
(1) to States and to the Reclamation Fund under the Mineral
Leasing Act (30 U.S.C. 191(a)); and
(2) to other funds receiving monies from Federal oil and
gas leasing programs, including--
(A) any recipients pursuant to section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g));
(B) the Land and Water Conservation Fund, pursuant to
section 2(c) of the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 4601-5(c));
(C) the Historic Preservation Fund, pursuant to section 108
of the National Historic Preservation Act (16 U.S.C. 470h);
and
(D) the Secure Energy Reinvestment Fund.
(d) Allocation.--Amounts obligated from the Fund under
subsection (a)(1) in each fiscal year shall be allocated as
follows:
(1) 35 percent shall be for activities under section
969(b)(1).
(2) 32.5 percent shall be for activities under section
969(b)(2).
(3) 7.5 percent shall be for activities under section
969(b)(3).
(4) 25 percent shall be for complementary research under
section 969(b)(4) and other activities under section 969(b)
to include program direction funds, overall program
oversight, contract management, and the establishment and
operation of a technical committee to ensure that in-house
research activities funded under subsection 969(b)(4) are
technically complementary to, and not duplicative of,
research conducted under section 969(b)(1), (2), and (3).
(e) Fund.--There is hereby established in the Treasury of
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund''.

Subtitle G--Improved Coordination and Management of Civilian Science
and Technology Programs

SEC. 978. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN
SCIENCE AND TECHNOLOGY PROGRAMS.

(a) Reconfiguration of Position of Director of the Office
of Science.--Section 209 of the Department of Energy
Organization Act (42 U.S.C. 7139) is amended to read as
follows:

``Office of science

``Sec. 209. (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.''.
(b) 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 Congress that the leadership for
departmental missions in nuclear energy should be at the
Assistant Secretary level.
(c) Technical and Conforming Amendments.--(1) 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)''.
(2) 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.''.

TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

SEC. 1002. OTHER TRANSACTIONS AUTHORITY.

Section 646 of the Department of Energy Organization Act
(42 U.S.C. 7256) is amended by adding at the end the
following:
``(g)(1) In addition to other authorities granted to the
Secretary under law, the Secretary may exercise the same
authority (subject to the same restrictions and conditions)
with respect to such research and projects as the Secretary
of Defense may exercise under section 2371 of title 10,
United States Code, except for subsections (b) and (f) of
such section 2371. 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) or section 152 of the Atomic Energy Act of 1954
(42 U.S.C. 2182).
``(2)(A) The Secretary may, under the authority of
paragraph (1), carry out prototype projects in accordance
with the requirements and conditions provided for carrying
out prototype projects under section 845 of the National
Defense Authorization Act for Fiscal Year 1994 (Public Law
103-160; 10 U.S.C. 2371 note), including that, to the maximum
extent practicable, competitive procedures shall be used when
entering into agreements to carry out projects under
subsection (a) of that section and that the period of
authority to carry out projects under such subsection (a)
terminates as provided in subsection (g) of that section.
``(B) In applying the requirements and conditions of
section 845 of the National Defense Authorization Act for
Fiscal Year 1994 under this subsection--
``(i) subsection (c) of that section shall apply with
respect to prototype projects carried out under this
paragraph; and
``(ii) the Director of the Office of Management and Budget
shall perform the functions of the Secretary of Defense under
subsection (d) of that section.
``(C) The Secretary may exercise authority under this
subsection for a project only if authorized by the Director
of the Office of Management and Budget to use the authority
for such project.
``(D) The annual report of the head of an executive agency
that is required under subsection (h) of section 2371 of
title 10, United States Code, as applied to the head of the
executive agency by subsection (a), shall be submitted to
Congress.
``(3) Not later than 90 days after the date of enactment of
this subsection, the Secretary, in consultation with the
Director of the Office of Management and Budget, shall
prescribe guidelines for using other transactions authorized
by paragraph (1). Such guidelines shall be published in the
Federal Register for public comment under rulemaking
procedures of the Department.

[[Page H2265]]

``(4) The authority of the Secretary under this subsection
may be delegated only to an officer of the Department who is
appointed by the President by and with the advice and consent
of the Senate and may not be delegated to any other person.
``(5)(A) Not later than September 31, 2006, the Comptroller
General of the United States shall report to Congress on the
Department's use of the authorities granted under this
section, including the ability to attract nontraditional
government contractors and whether additional safeguards are
needed with respect to the use of such authorities.
``(B) In this section, the term `nontraditional Government
contractor' has the same meaning as the term `nontraditional
defense contractor' as defined in section 845(e) of the
National Defense Authorization Act for Fiscal Year 1994
(Public Law 103-160; 10 U.S.C. 2371 note).''.

SEC. 1003. UNIVERSITY COLLABORATION.

Not later than 2 years after the date of enactment of this
Act, the Secretary of Energy shall transmit to the Congress a
report that examines the feasibility of promoting
collaborations between major universities and other colleges
and universities in grants, contracts, and cooperative
agreements made by the Secretary for energy projects. For
purposes of this section, major universities are schools
listed by the Carnegie Foundation as Doctoral Research
Extensive Universities. The Secretary shall also consider
providing incentives to increase the inclusion of small
institutions of higher education, including minority-serving
institutions, in energy grants, contracts, and cooperative
agreements.

SEC. 1004. SENSE OF CONGRESS.

It is the sense of the Congress that--
(1) the Secretary of Energy should develop and implement
more stringent procurement and inventory controls, including
controls on the purchase card program, to prevent waste,
fraud, and abuse of taxpayer funds by employees and
contractors of the Department of Energy; and
(2) the Department's Inspector General should continue to
closely review purchase card purchases and other procurement
and inventory practices at the Department.

TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

This title may be cited as the ``Electric Reliability Act
of 2005''.

Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) is amended by adding at the end the following:

``SEC. 215. ELECTRIC RELIABILITY.

The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term
includes requirements for the operation of existing bulk-
power system facilities, including cybersecurity protection,
and the design of planned additions or modifications to such
facilities to the extent necessary to provide for reliable
operation of the bulk-power system, but the term does not
include any requirement to enlarge such facilities or to
construct new transmission capacity or generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so
that instability, uncontrolled separation, or cascading
failures of such system will not occur as a result of a
sudden disturbance, including a cybersecurity incident, or
unanticipated failure of system elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators
of other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(8) The term `cybersecurity incident' means a malicious
act or suspicious event that disrupts, or was an attempt to
disrupt, the operation of those programmable electronic
devices and communication networks including hardware,
software and data that are essential to the reliable
operation of the bulk power system.
``(b) Jurisdiction and Applicability.--(1) The Commission
shall have jurisdiction, within the United States, over the
ERO certified by the Commission under subsection (c), any
regional entities, and all users, owners and operators of the
bulk-power system, including but not limited to the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk-power system shall comply with
reliability standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement
the requirements of this section not later than 180 days
after the date of enactment of this section.
``(c) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may
submit an application to the Commission for certification as
the Electric Reliability Organization. The Commission may
certify 1 such ERO if the Commission determines that such
ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners and
operators of the bulk-power system, while assuring fair
stakeholder representation in the selection of its directors
and balanced decisionmaking in any ERO committee or
subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and other
charges among end users for all activities under this
section;
``(C) provide fair and impartial procedures for enforcement
of reliability standards through the imposition of penalties
in accordance with subsection (e) (including limitations on
activities, functions, or operations, or other appropriate
sanctions);
``(D) provide for reasonable notice and opportunity for
public comment, due process, openness, and balance of
interests in developing reliability standards and otherwise
exercising its duties; and
``(E) provide for taking, after certification, appropriate
steps to gain recognition in Canada and Mexico.

The total amount of all dues, fees, and other charges
collected by the ERO in each of the fiscal years 2006 through
2015 and allocated under subparagraph (B) shall not exceed
$50,000,000.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or
modification to a reliability standard that it proposes to be
made effective under this section with the Commission.
``(2) The Commission may approve, by rule or order, a
proposed reliability standard or modification to a
reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest. The Commission shall give due
weight to the technical expertise of the Electric Reliability
Organization with respect to the content of a proposed
standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability
standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take
effect upon approval by the Commission.
``(3) The Electric Reliability Organization shall
rebuttably presume that a proposal from a regional entity
organized on an Interconnection-wide basis for a reliability
standard or modification to a reliability standard to be
applicable on an Interconnection-wide basis is just,
reasonable, and not unduly discriminatory or preferential,
and in the public interest.
``(4) The Commission shall remand to the Electric
Reliability Organization for further consideration a proposed
reliability standard or a modification to a reliability
standard that the Commission disapproves in whole or in part.
``(5) The Commission, upon its own motion or upon
complaint, may order the Electric Reliability Organization to
submit to the Commission a proposed reliability standard or a
modification to a reliability standard that addresses a
specific matter if the Commission considers such a new or
modified reliability standard appropriate to carry out this
section.
``(6) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or
agreement accepted, approved, or ordered by the Commission
applicable to a transmission organization. Such transmission
organization shall continue to comply with such function,
rule, order, tariff, rate schedule or agreement accepted
approved, or ordered by the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, it shall
order the ERO

[[Page H2266]]

to develop and file with the Commission a modified
reliability standard under paragraph (4) or (5) of this
subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to
paragraph (2), a penalty on a user or owner or operator of
the bulk-power system for a violation of a reliability
standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the
Commission, on its own motion or upon application by the
user, owner or operator that is the subject of the penalty
filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or
the initiation of review by the Commission on its own motion,
shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon
application by the user, owner or operator that is the
subject of such penalty. In any proceeding to review a
penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may consist
solely of the record before the ERO and opportunity for the
presentation of supporting reasons to affirm, modify, or set
aside the penalty), shall by order affirm, set aside,
reinstate, or modify the penalty, and, if appropriate, remand
to the ERO for further proceedings. The Commission shall
implement expedited procedures for such hearings.
``(3) On its own motion or upon complaint, the Commission
may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards
under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced stakeholder
board.
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
``(5) The Commission may take such action as is necessary
or appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission
order affecting the ERO or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user,
owner, or operator to remedy the violation in a timely
manner.
``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of its basis and
purpose. The Commission, upon its own motion or complaint,
may propose a change to the rules of the ERO. A proposed rule
or proposed rule change shall take effect upon a finding by
the Commission, after notice and opportunity for comment,
that the change is just, reasonable, not unduly
discriminatory or preferential, is in the public interest,
and satisfies the requirements of subsection (c).
``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--The President
is urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness
of the ERO in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO shall have authority
to develop and enforce compliance with reliability standards
for only the bulk-power system.
``(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the
safety, adequacy, and reliability of electric service within
that State, as long as such action is not inconsistent with
any reliability standard, except that the State of New York
may establish rules that result in greater reliability within
that State, as long as such action does not result in lesser
reliability outside the State than that provided by the
reliability standards.
``(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
``(5) The Commission, after consultation with the ERO and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at
least \2/3\ of the States within a region that have more than
\1/2\ of their electric load served within the region. A
regional advisory body shall be composed of 1 member from
each participating State in the region, appointed by the
Governor of each State, and may include representatives of
agencies, States, and provinces outside the United States. A
regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether a
standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in
the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly
discriminatory or preferential, and in the public interest
and any other responsibilities requested by the Commission.
The Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
``(k) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 215(c) of the Federal Power Act and any regional
entity delegated enforcement authority pursuant to section
215(e)(4) of that Act are not departments, agencies, or
instrumentalities of the United States Government.
(c) Limitation on Annual Appropriations.--There is
authorized to be appropriated not more than $50,000,000 per
year for fiscal years 2006 through 2015 for all activities
under the amendment made by subsection (a).

Subtitle B--Transmission Infrastructure Modernization

SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION
FACILITIES.

(a) Amendment of Federal Power Act.--Part II of the Federal
Power Act is amended by adding at the end the following:

``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION
FACILITIES.

``(a) Designation of National Interest Electric
Transmission Corridors.--
``(1) Transmission congestion study.--Within 1 year after
the enactment of this section, and every 3 years thereafter,
the Secretary of Energy, in consultation with affected
States, shall conduct a study of electric transmission
congestion. After considering alternatives and
recommendations from interested parties, including an
opportunity for comment from affected States, the Secretary
shall issue a report, based on such study, which may
designate any geographic area experiencing electric energy
transmission capacity constraints or congestion that
adversely affects consumers as a national interest electric
transmission corridor. The Secretary shall conduct the study
and issue the report in consultation with any appropriate
regional entity referenced in section 215 of this Act.
``(2) Considerations.--In determining whether to designate
a national interest electric transmission corridor referred
to in paragraph (1) under this section, the Secretary may
consider whether--
``(A) the economic vitality and development of the
corridor, or the end markets served by the corridor, may be
constrained by lack of adequate or reasonably priced
electricity;
``(B)(i) economic growth in the corridor, or the end
markets served by the corridor, may be jeopardized by
reliance on limited sources of energy; and
``(ii) a diversification of supply is warranted;
``(C) the energy independence of the United States would be
served by the designation;
``(D) the designation would be in the interest of national
energy policy; and
``(E) the designation would enhance national defense and
homeland security.
``(b) Construction Permit.--Except as provided in
subsection (i), the Commission is authorized, after notice
and an opportunity for hearing, to issue a permit or permits
for the construction or modification of electric transmission
facilities in a national interest

[[Page H2267]]

electric transmission corridor designated by the Secretary
under subsection (a) if the Commission finds that--
``(1)(A) a State in which the transmission facilities are
to be constructed or modified is without authority to--
``(i) approve the siting of the facilities; or
``(ii) consider the interstate benefits expected to be
achieved by the proposed construction or modification of
transmission facilities in the State;
``(B) the applicant for a permit is a transmitting utility
under this Act but does not qualify to apply for a permit or
siting approval for the proposed project in a State because
the applicant does not serve end-use customers in the State;
or
``(C) a State commission or other entity that has authority
to approve the siting of the facilities has--
``(i) withheld approval for more than 1 year after the
filing of an application pursuant to applicable law seeking
approval or 1 year after the designation of the relevant
national interest electric transmission corridor, whichever
is later; or
``(ii) conditioned its approval in such a manner that the
proposed construction or modification will not significantly
reduce transmission congestion in interstate commerce or is
not economically feasible;
``(2) the facilities to be authorized by the permit will be
used for the transmission of electric energy in interstate
commerce;
``(3) the proposed construction or modification is
consistent with the public interest;
``(4) the proposed construction or modification will
significantly reduce transmission congestion in interstate
commerce and protects or benefits consumers; and
``(5) the proposed construction or modification is
consistent with sound national energy policy and will enhance
energy independence.
``(c) Permit Applications.--Permit applications under
subsection (b) shall be made in writing to the Commission.
The Commission shall issue rules setting forth the form of
the application, the information to be contained in the
application, and the manner of service of notice of the
permit application upon interested persons.
``(d) Comments.--In any proceeding before the Commission
under subsection (b), the Commission shall afford each State
in which a transmission facility covered by the permit is or
will be located, each affected Federal agency and Indian
tribe, private property owners, and other interested persons,
a reasonable opportunity to present their views and
recommendations with respect to the need for and impact of a
facility covered by the permit.
``(e) Rights-of-Way.--In the case of a permit under
subsection (b) for electric transmission facilities to be
located on property other than property owned by the United
States or a State, if the permit holder cannot acquire by
contract, or is unable to agree with the owner of the
property to the compensation to be paid for, the necessary
right-of-way to construct or modify such transmission
facilities, the permit holder may acquire the right-of-way by
the exercise of the right of eminent domain in the district
court of the United States for the district in which the
property concerned is located, or in the appropriate court of
the State in which the property is located. The practice and
procedure in any action or proceeding for that purpose in the
district court of the United States shall conform as nearly
as may be with the practice and procedure in similar action
or proceeding in the courts of the State where the property
is situated.
``(f) State Law.--Nothing in this section shall preclude
any person from constructing or modifying any transmission
facility pursuant to State law.
``(g) Compensation.--Any exercise of eminent domain
authority pursuant to this section shall be considered a
taking of private property for which just compensation is
due. Just compensation shall be an amount equal to the full
fair market value of the property taken on the date of the
exercise of eminent domain authority, except that the
compensation shall exceed fair market value if necessary to
make the landowner whole for decreases in the value of any
portion of the land not subject to eminent domain. Any parcel
of land acquired by eminent domain under this subsection
shall be transferred back to the owner from whom it was
acquired (or his heirs or assigns) if the land is not used
for the construction or modification of electric transmission
facilities within a reasonable period of time after the
acquisition. Other than construction, modification,
operation, or maintenance of electric transmission facilities
and related facilities, property acquired under subsection
(e) may not be used for any purpose (including use for any
heritage area, recreational trail, or park) without the
consent of the owner of the parcel from whom the property was
acquired (or the owner's heirs or assigns).
``(h) Coordination of Federal Authorizations for
Transmission and Distribution Facilities.--
``(1) Lead agency.--If an applicant, or prospective
applicant, for a Federal authorization related to an electric
transmission or distribution facility so requests, the
Department of Energy (DOE) shall act as the lead agency for
purposes of coordinating all applicable Federal
authorizations and related environmental reviews of the
facility. For purposes of this subsection, the term `Federal
authorization' means any authorization required under Federal
law in order to site a transmission or distribution facility,
including but not limited to such permits, special use
authorizations, certifications, opinions, or other approvals
as may be required, whether issued by a Federal or a State
agency. To the maximum extent practicable under applicable
Federal law, the Secretary of Energy shall coordinate this
Federal authorization and review process with any Indian
tribes, multi-State entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely and
efficient review and permit decisions.
``(2) Authority to set deadlines.--As lead agency, the
Department of Energy, in consultation with agencies
responsible for Federal authorizations and, as appropriate,
with Indian tribes, multi-State entities, and State agencies
that are willing to coordinate their own separate permitting
and environmental reviews with the Federal authorization and
environmental reviews, shall establish prompt and binding
intermediate milestones and ultimate deadlines for the review
of, and Federal authorization decisions relating to, the
proposed facility. The Secretary of Energy shall ensure that
once an application has been submitted with such data as the
Secretary considers necessary, all permit decisions and
related environmental reviews under all applicable Federal
laws shall be completed within 1 year or, if a requirement of
another provision of Federal law makes this impossible, as
soon thereafter as is practicable. The Secretary of Energy
also shall provide an expeditious pre-application mechanism
for prospective applicants to confer with the agencies
involved to have each such agency determine and communicate
to the prospective applicant within 60 days of when the
prospective applicant submits a request for such information
concerning--
``(A) the likelihood of approval for a potential facility;
and
``(B) key issues of concern to the agencies and public.
``(3) Consolidated environmental review and record of
decision.--As lead agency head, the Secretary of Energy, in
consultation with the affected agencies, shall prepare a
single environmental review document, which shall be used as
the basis for all decisions on the proposed project under
Federal law. The document may be an environmental assessment
or environmental impact statement under the National
Environmental Policy Act of 1969 if warranted, or such other
form of analysis as may be warranted. The Secretary of Energy
and the heads of other agencies shall streamline the review
and permitting of transmission and distribution facilities
within corridors designated under section 503 of the Federal
Land Policy and Management Act (43 U.S.C. 1763) by fully
taking into account prior analyses and decisions relating to
the corridors. Such document shall include consideration by
the relevant agencies of any applicable criteria or other
matters as required under applicable laws.
``(4) Appeals.--In the event that any agency has denied a
Federal authorization required for a transmission or
distribution facility, or has failed to act by the deadline
established by the Secretary pursuant to this section for
deciding whether to issue the authorization, the applicant or
any State in which the facility would be located may file an
appeal with the Secretary, who shall, in consultation with
the affected agency, review the denial or take action on the
pending application. Based on the overall record and in
consultation with the affected agency, the Secretary may then
either issue the necessary authorization with any appropriate
conditions, or deny the application. The Secretary shall
issue a decision within 90 days of the filing of the appeal.
In making a decision under this paragraph, the Secretary
shall comply with applicable requirements of Federal law,
including any requirements of the Endangered Species Act, the
Clean Water Act, the National Forest Management Act, the
National Environmental Policy Act of 1969, and the Federal
Land Policy and Management Act.
``(5) Conforming regulations and memoranda of
understanding.--Not later than 18 months after the date of
enactment of this section, the Secretary of Energy shall
issue any regulations necessary to implement this subsection.
Not later than 1 year after the date of enactment of this
section, the Secretary and the heads of all Federal agencies
with authority to issue Federal authorizations shall enter
into Memoranda of Understanding to ensure the timely and
coordinated review and permitting of electricity transmission
and distribution facilities. The head of each Federal agency
with authority to issue a Federal authorization shall
designate a senior official responsible for, and dedicate
sufficient other staff and resources to ensure, full
implementation of the DOE regulations and any Memoranda.
Interested Indian tribes, multi-State entities, and State
agencies may enter such Memoranda of Understanding.
``(6) Duration and renewal.--Each Federal land use
authorization for an electricity transmission or distribution
facility shall be issued--
``(A) for a duration, as determined by the Secretary of
Energy, commensurate with the anticipated use of the
facility, and
``(B) with appropriate authority to manage the right-of-way
for reliability and environmental protection.
Upon the expiration of any such authorization (including an
authorization issued prior to enactment of this section), the
authorization shall be reviewed for renewal taking

[[Page H2268]]

fully into account reliance on such electricity
infrastructure, recognizing its importance for public health,
safety and economic welfare and as a legitimate use of
Federal lands.
``(7) Maintaining and enhancing the transmission
infrastructure.--In exercising the responsibilities under
this section, the Secretary of Energy shall consult regularly
with the Federal Energy Regulatory Commission (FERC), FERC-
approved electric reliability organizations (including
related regional entities), and FERC-approved Regional
Transmission Organizations and Independent System Operators.
``(i) Interstate Compacts.--The consent of Congress is
hereby given for 3 or more contiguous States to enter into an
interstate compact, subject to approval by Congress,
establishing regional transmission siting agencies to
facilitate siting of future electric energy transmission
facilities within such States and to carry out the electric
energy transmission siting responsibilities of such States.
The Secretary of Energy may provide technical assistance to
regional transmission siting agencies established under this
subsection. Such regional transmission siting agencies shall
have the authority to review, certify, and permit siting of
transmission facilities, including facilities in national
interest electric transmission corridors (other than
facilities on property owned by the United States). The
Commission shall have no authority to issue a permit for the
construction or modification of electric transmission
facilities within a State that is a party to a compact,
unless the members of a compact are in disagreement and the
Secretary makes, after notice and an opportunity for a
hearing, the finding described in subsection (b)(1)(C).
``(j) Savings Clause.--Nothing in this section shall be
construed to affect any requirement of the environmental laws
of the United States, including, but not limited to, the
National Environmental Policy Act of 1969. Subsection (h)(4)
of this section shall not apply to any Congressionally-
designated components of the National Wilderness Preservation
System, the National Wild and Scenic Rivers System, or the
National Park system (including National Monuments therein).
``(k) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).''.
(b) Reports to Congress on Corridors and Rights of Way on
Federal Lands.--The Secretary of the Interior, the Secretary
of Energy, the Secretary of Agriculture, and the Chairman of
the Council on Environmental Quality shall, within 90 days of
the date of enactment of this subsection, submit a joint
report to Congress identifying each of the following:
(1) All existing designated transmission and distribution
corridors on Federal land and the status of work related to
proposed transmission and distribution corridor designations
under Title V of the Federal Land Policy and Management Act
(43 U.S.C. 1761 et seq.), the schedule for completing such
work, any impediments to completing the work, and steps that
Congress could take to expedite the process.
(2) The number of pending applications to locate
transmission and distribution facilities on Federal lands,
key information relating to each such facility, how long each
application has been pending, the schedule for issuing a
timely decision as to each facility, and progress in
incorporating existing and new such rights-of-way into
relevant land use and resource management plans or their
equivalent.
(3) The number of existing transmission and distribution
rights-of-way on Federal lands that will come up for renewal
within the following 5, 10, and 15 year periods, and a
description of how the Secretaries plan to manage such
renewals.

SEC. 1222. THIRD-PARTY FINANCE.

(a) Existing Facilities.--The Secretary of Energy
(hereinafter in this section referred to as the
``Secretary''), acting through the Administrator of the
Western Area Power Administration (hereinafter in this
section referred to as ``WAPA''), or through the
Administrator of the Southwestern Power Administration
(hereinafter in this section referred to as ``SWPA''), or
both, may design, develop, construct, operate, maintain, or
own, or participate with other entities in designing,
developing, constructing, operating, maintaining, or owning,
an electric power transmission facility and related
facilities (``Project'') needed to upgrade existing
transmission facilities owned by SWPA or WAPA if the
Secretary of Energy, in consultation with the applicable
Administrator, determines that the proposed Project--
(1)(A) is located in a national interest electric
transmission corridor designated under section 216(a) of the
Federal Power Act and will reduce congestion of electric
transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a transmission
expansion plan or otherwise, by the appropriate Regional
Transmission Organization or Independent System Operator (as
defined in the Federal Power Act), if any, or approved
regional reliability organization; and
(B) efficient and reliable operation of the transmission
grid; and
(3) would be operated in conformance with prudent utility
practice.
(b) New Facilities.--The Secretary, acting through WAPA or
SWPA, or both, may design, develop, construct, operate,
maintain, or own, or participate with other entities in
designing, developing, constructing, operating, maintaining,
or owning, a new electric power transmission facility and
related facilities (``Project'') located within any State in
which WAPA or SWPA operates if the Secretary, in consultation
with the applicable Administrator, determines that the
proposed Project--
(1)(A) is located in an area designated under section
216(a) of the Federal Power Act and will reduce congestion of
electric transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a transmission
expansion plan or otherwise, by the appropriate Regional
Transmission Organization or Independent System Operator, if
any, or approved regional reliability organization; and
(B) efficient and reliable operation of the transmission
grid;
(3) will be operated in conformance with prudent utility
practice;
(4) will be operated by, or in conformance with the rules
of, the appropriate (A) Regional Transmission Organization or
Independent System Operator, if any, or (B) if such an
organization does not exist, regional reliability
organization; and
(5) will not duplicate the functions of existing
transmission facilities or proposed facilities which are the
subject of ongoing or approved siting and related permitting
proceedings.
(c) Other Funds.--
(1) In general.--In carrying out a Project under subsection
(a) or (b), the Secretary may accept and use funds
contributed by another entity for the purpose of carrying out
the Project.
(2) Availability.--The contributed funds shall be available
for expenditure for the purpose of carrying out the Project--
(A) without fiscal year limitation; and
(B) as if the funds had been appropriated specifically for
that Project.
(3) Allocation of costs.--In carrying out a Project under
subsection (a) or (b), any costs of the Project not paid for
by contributions from another entity shall be collected
through rates charged to customers using the new transmission
capability provided by the Project and allocated equitably
among these project beneficiaries using the new transmission
capability.
(d) Relationship to Other Laws.--Nothing in this section
affects any requirement of--
(1) any Federal environmental law, including the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
(2) any Federal or State law relating to the siting of
energy facilities; or
(3) any existing authorizing statutes.
(e) Savings Clause.--Nothing in this section shall
constrain or restrict an Administrator in the utilization of
other authority delegated to the Administrator of WAPA or
SWPA.
(f) Secretarial Determinations.--Any determination made
pursuant to subsections (a) or (b) shall be based on findings
by the Secretary using the best available data.
(g) Maximum Funding Amount.--The Secretary shall not accept
and use more than $100,000,000 under subsection (c)(1) for
the period encompassing fiscal years 2006 through 2015.

SEC. 1223. TRANSMISSION SYSTEM MONITORING.

Within 6 months after the date of enactment of this Act,
the Secretary of Energy and the Federal Energy Regulatory
Commission shall study and report to Congress on the steps
which must be taken to establish a system to make available
to all transmission system owners and Regional Transmission
Organizations (as defined in the Federal Power Act) within
the Eastern and Western Interconnections real-time
information on the functional status of all transmission
lines within such Interconnections. In such study, the
Commission shall assess technical means for implementing such
transmission information system and identify the steps the
Commission or Congress must take to require the
implementation of such system.

SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES.

(a) Authority.--The Federal Energy Regulatory Commission,
in the exercise of its authorities under the Federal Power
Act and the Public Utility Regulatory Policies Act of 1978,
shall encourage the deployment of advanced transmission
technologies.
(b) Definition.--For the purposes of this section, the term
``advanced transmission technologies'' means technologies
that increase the capacity, efficiency, or reliability of
existing or new transmission facilities, including, but not
limited to--
(1) high-temperature lines (including superconducting
cables);
(2) underground cables;
(3) advanced conductor technology (including advanced
composite conductors, high-temperature low-sag conductors,
and fiber optic temperature sensing conductors);
(4) high-capacity ceramic electric wire, connectors, and
insulators;
(5) optimized transmission line configurations (including
multiple phased transmission lines);
(6) modular equipment;
(7) wireless power transmission;

[[Page H2269]]

(8) ultra-high voltage lines;
(9) high-voltage DC technology;
(10) flexible AC transmission systems;
(11) energy storage devices (including pumped hydro,
compressed air, superconducting magnetic energy storage,
flywheels, and batteries);
(12) controllable load;
(13) distributed generation (including PV, fuel cells,
microturbines);
(14) enhanced power device monitoring;
(15) direct system state sensors;
(16) fiber optic technologies;
(17) power electronics and related software (including real
time monitoring and analytical software); and
(18) any other technologies the Commission considers
appropriate.
(c) Obsolete or Impracticable Technologies.--The Commission
is authorized to cease encouraging the deployment of any
technology described in this section on a finding that such
technology has been rendered obsolete or otherwise
impracticable to deploy.

SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

(a) Electric Transmission and Distribution Program.--The
Secretary of Energy (hereinafter in this section referred to
as the ``Secretary'') acting through the Director of the
Office of Electric Transmission and Distribution shall
establish a comprehensive research, development,
demonstration and commercial application program to promote
improved reliability and efficiency of electrical
transmission and distribution systems. This program shall
include--
(1) advanced energy delivery and storage technologies,
materials, and systems, including new transmission
technologies, such as flexible alternating current
transmission systems, composite conductor materials and other
technologies that enhance reliability, operational
flexibility, or power-carrying capability;
(2) advanced grid reliability and efficiency technology
development;
(3) technologies contributing to significant load
reductions;
(4) advanced metering, load management, and control
technologies;
(5) technologies to enhance existing grid components;
(6) the development and use of high-temperature
superconductors to--
(A) enhance the reliability, operational flexibility, or
power-carrying capability of electric transmission or
distribution systems; or
(B) increase the efficiency of electric energy generation,
transmission, distribution, or storage systems;
(7) integration of power systems, including systems to
deliver high-quality electric power, electric power
reliability, and combined heat and power;
(8) supply of electricity to the power grid by small scale,
distributed and residential-based power generators;
(9) the development and use of advanced grid design,
operation and planning tools;
(10) any other infrastructure technologies, as appropriate;
and
(11) technology transfer and education.
(b) Program Plan.--Not later than 1 year after the date of
the enactment of this legislation, the Secretary, in
consultation with other appropriate Federal agencies, shall
prepare and transmit to Congress a 5-year program plan to
guide activities under this section. In preparing the program
plan, the Secretary may consult with utilities, energy
services providers, manufacturers, institutions of higher
education, other appropriate State and local agencies,
environmental organizations, professional and technical
societies, and any other persons the Secretary considers
appropriate.
(c) Implementation.--The Secretary shall consider
implementing this program using a consortium of industry,
university and national laboratory participants.
(d) Report.--Not later than 2 years after the transmittal
of the plan under subsection (b), the Secretary shall
transmit a report to Congress describing the progress made
under this section and identifying any additional resources
needed to continue the development and commercial application
of transmission and distribution infrastructure technologies.
(e) Power Delivery Research Initiative.--
(1) In general.--The Secretary shall establish a research,
development, demonstration, and commercial application
initiative specifically focused on power delivery utilizing
components incorporating high temperature superconductivity.
(2) Goals.--The goals of this initiative shall be to--
(A) establish facilities to develop high temperature
superconductivity power applications in partnership with
manufacturers and utilities;
(B) provide technical leadership for establishing
reliability for high temperature superconductivity power
applications including suitable modeling and analysis;
(C) facilitate commercial transition toward direct current
power transmission, storage, and use for high power systems
utilizing high temperature superconductivity; and
(D) facilitate the integration of very low impedance high
temperature superconducting wires and cables in existing
electric networks to improve system performance, power flow
control and reliability.
(3) Requirements.--The initiative shall include--
(A) feasibility analysis, planning, research, and design to
construct demonstrations of superconducting links in high
power, direct current and controllable alternating current
transmission systems;
(B) public-private partnerships to demonstrate deployment
of high temperature superconducting cable into testbeds
simulating a realistic transmission grid and under varying
transmission conditions, including actual grid insertions;
and
(C) testbeds developed in cooperation with national
laboratories, industries, and universities to demonstrate
these technologies, prepare the technologies for commercial
introduction, and address cost or performance roadblocks to
successful commercial use.
(4) Authorization of appropriations.--For purposes of
carrying out this subsection, there are authorized to be
appropriated--
(A) for fiscal year 2006, $15,000,000;
(B) for fiscal year 2007, $20,000,000;
(C) for fiscal year 2008, $30,000,000;
(D) for fiscal year 2009, $35,000,000; and
(E) for fiscal year 2010, $40,000,000.

SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE
PROGRAM.

(a) Program.--The Secretary of Energy is authorized to
establish an Advanced Power System Technology Incentive
Program to support the deployment of certain advanced power
system technologies and to improve and protect certain
critical governmental, industrial, and commercial processes.
Funds provided under this section shall be used by the
Secretary to make incentive payments to eligible owners or
operators of advanced power system technologies to increase
power generation through enhanced operational, economic, and
environmental performance. Payments under this section may
only be made upon receipt by the Secretary of an incentive
payment application establishing an applicant as either--
(1) a qualifying advanced power system technology facility;
or
(2) a qualifying security and assured power facility.
(b) Incentives.--Subject to availability of funds, a
payment of 1.8 cents per kilowatt-hour shall be paid to the
owner or operator of a qualifying advanced power system
technology facility under this section for electricity
generated at such facility. An additional 0.7 cents per
kilowatt-hour shall be paid to the owner or operator of a
qualifying security and assured power facility for
electricity generated at such facility. Any facility
qualifying under this section shall be eligible for an
incentive payment for up to, but not more than, the first
10,000,000 kilowatt-hours produced in any fiscal year.
(c) Eligibility.--For purposes of this section:
(1) Qualifying advanced power system technology facility.--
The term ``qualifying advanced power system technology
facility'' means a facility using an advanced fuel cell,
turbine, or hybrid power system or power storage system to
generate or store electric energy.
(2) Qualifying security and assured power facility.--The
term ``qualifying security and assured power facility'' means
a qualifying advanced power system technology facility
determined by the Secretary of Energy, in consultation with
the Secretary of Homeland Security, to be in critical need of
secure, reliable, rapidly available, high-quality power for
critical governmental, industrial, or commercial
applications.
(d) Authorization.--There are authorized to be appropriated
to the Secretary of Energy for the purposes of this section,
$10,000,000 for each of the fiscal years 2006 through 2012.

SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

(a) Creation of an Office of Electric Transmission and
Distribution.--Title II of the Department of Energy
Organization Act (42 U.S.C. 7131 et seq.) (as amended by
section 502(a) of this Act) is amended by inserting the
following after section 217, as added by title V of this Act:

``SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

``(a) Establishment.--There is established within the
Department an Office of Electric Transmission and
Distribution. This Office shall be headed by a Director,
subject to the authority of the Secretary. The Director shall
be appointed by the Secretary. The Director shall be
compensated at the annual rate prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code.
``(b) Director.--The Director shall--
``(1) coordinate and develop a comprehensive, multi-year
strategy to improve the Nation's electricity transmission and
distribution;
``(2) implement or, where appropriate, coordinate the
implementation of, the recommendations made in the
Secretary's May 2002 National Transmission Grid Study;
``(3) oversee research, development, and demonstration to
support Federal energy policy related to electricity
transmission and distribution;
``(4) grant authorizations for electricity import and
export pursuant to section 202(c), (d), (e), and (f) of the
Federal Power Act (16 U.S.C. 824a);
``(5) perform other functions, assigned by the Secretary,
related to electricity transmission and distribution; and
``(6) develop programs for workforce training in power and
transmission engineering.''.
(b) Conforming Amendments.--(1) The table of contents of
the Department of Energy Organization Act (42 U.S.C. 7101
note) is

[[Page H2270]]

amended by inserting after the item relating to section 217
the following new item:

``Sec. 218. Office of Electric Transmission and Distribution.''.

(2) Section 5315 of title 5, United States Code, is amended
by inserting after the item relating to ``Inspector General,
Department of Energy.'' the following:
``Director, Office of Electric Transmission and
Distribution, Department of Energy.''.

Subtitle C--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 the following new
section:

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING
UTILITIES.

``(a) Transmission Services.--Subject to section 212(h),
the Commission may, by rule or order, require an unregulated
transmitting utility to provide transmission services--
``(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
``(2) on terms and conditions (not relating to rates) that
are comparable to those under which such unregulated
transmitting utility provides transmission services to itself
and that are not unduly discriminatory or preferential.
``(b) Exemption.--The Commission shall exempt from any rule
or order under this section any unregulated transmitting
utility that--
``(1) sells no more than 4,000,000 megawatt hours of
electricity per year; or
``(2) does not own or operate any transmission facilities
that are necessary for operating an interconnected
transmission system (or any portion thereof); or
``(3) meets other criteria the Commission determines to be
in the public interest.
``(c) Local Distribution Facilities.--The requirements of
subsection (a) shall not apply to facilities used in local
distribution.
``(d) Exemption Termination.--Whenever the Commission,
after an evidentiary hearing held upon a complaint and after
giving consideration to reliability standards established
under section 215, finds on the basis of a preponderance of
the evidence that any exemption granted pursuant to
subsection (b) unreasonably impairs the continued reliability
of an interconnected transmission system, it shall revoke the
exemption granted to that transmitting utility.
``(e) Application to Unregulated Transmitting Utilities.--
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.
``(f) Remand.--In exercising its authority under paragraph
(1) of subsection (a), the Commission may remand transmission
rates to an unregulated transmitting utility for review and
revision where necessary to meet the requirements of
subsection (a).
``(g) Other Requests.--The provision of transmission
services under subsection (a) does not preclude a request for
transmission services under section 211.
``(h) Limitation.--The Commission may not require a State
or municipality to take action under this section that would
violate a private activity bond rule for purposes of section
141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
``(i) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require
an unregulated transmitting utility to transfer control or
operational control of its transmitting facilities to an RTO
or any other Commission-approved independent transmission
organization designated to provide nondiscriminatory
transmission access.
``(j) Definition.--For purposes of this section, the term
`unregulated transmitting utility' means an entity that--
``(1) owns or operates facilities used for the transmission
of electric energy in interstate commerce; and
``(2) is an entity described in section 201(f).''.

SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANSMISSION
ORGANIZATIONS.

It is the sense of Congress that, in order to promote fair,
open access to electric transmission service, benefit retail
consumers, facilitate wholesale competition, improve
efficiencies in transmission grid management, promote grid
reliability, remove opportunities for unduly discriminatory
or preferential transmission practices, and provide for the
efficient development of transmission infrastructure needed
to meet the growing demands of competitive wholesale power
markets, all transmitting utilities in interstate commerce
should voluntarily become members of Regional Transmission
Organizations as defined in section 3 of the Federal Power
Act.

SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION APPLICATIONS
PROGRESS REPORT.

Not later than 120 days after the date of enactment of this
section, the Federal Energy Regulatory Commission shall
submit to Congress a report containing each of the following:
(1) A list of all regional transmission organization
applications filed at the Commission pursuant to subpart F of
part 35 of title 18, Code of Federal Regulations (in this
section referred to as ``Order No. 2000''), including an
identification of each public utility and other entity
included within the proposed membership of the regional
transmission organization.
(2) A brief description of the status of each pending
regional transmission organization application, including a
precise explanation of how each fails to comply with the
minimal requirements of Order No. 2000 and what steps need to
be taken to bring each application into such compliance.
(3) For any application that has not been finally approved
by the Commission, a detailed description of every aspect of
the application that the Commission has determined does not
conform to the requirements of Order No. 2000.
(4) For any application that has not been finally approved
by the Commission, an explanation by the Commission of why
the items described pursuant to paragraph (3) constitute
material noncompliance with the requirements of the
Commission's Order No. 2000 sufficient to justify denial of
approval by the Commission.
(5) For all regional transmission organization applications
filed pursuant to the Commission's Order No. 2000, whether
finally approved or not--
(A) a discussion of that regional transmission
organization's efforts to minimize rate seams between itself
and--
(i) other regional transmission organizations; and
(ii) entities not participating in a regional transmission
organization;
(B) a discussion of the impact of such seams on consumers
and wholesale competition; and
(C) a discussion of minimizing cost-shifting on consumers.

SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL
TRANSMISSION ORGANIZATIONS.

(a) Definitions.--For purposes of this section--
(1) Appropriate federal regulatory authority.--The term
``appropriate Federal regulatory authority'' means--
(A) with respect to a Federal power marketing agency (as
defined in the Federal Power Act), the Secretary of Energy,
except that the Secretary may designate the Administrator of
a Federal power marketing agency to act as the appropriate
Federal regulatory authority with respect to the transmission
system of that Federal power marketing agency; and
(B) with respect to the Tennessee Valley Authority, the
Board of Directors of the Tennessee Valley Authority.
(2) Federal utility.--The term ``Federal utility'' means a
Federal power marketing agency or the Tennessee Valley
Authority.
(3) Transmission system.--The term ``transmission system''
means electric transmission facilities owned, leased, or
contracted for by the United States and operated by a Federal
utility.
(b) Transfer.--The appropriate Federal regulatory authority
is authorized to enter into a contract, agreement or other
arrangement transferring control and use of all or part of
the Federal utility's transmission system to an RTO or ISO
(as defined in the Federal Power Act), approved by the
Federal Energy Regulatory Commission. Such contract,
agreement or arrangement shall include--
(1) performance standards for operation and use of the
transmission system that the head of the Federal utility
determines necessary or appropriate, including standards that
assure recovery of all the Federal utility's costs and
expenses related to the transmission facilities that are the
subject of the contract, agreement or other arrangement;
consistency with existing contracts and third-party financing
arrangements; and consistency with said Federal utility's
statutory authorities, obligations, and limitations;
(2) provisions for monitoring and oversight by the Federal
utility of the RTO's or ISO's fulfillment of the terms and
conditions of the contract, agreement or other arrangement,
including a provision for the resolution of disputes through
arbitration or other means with the regional transmission
organization or with other participants, notwithstanding the
obligations and limitations of any other law regarding
arbitration; and
(3) a provision that allows the Federal utility to withdraw
from the RTO or ISO and terminate the contract, agreement or
other arrangement in accordance with its terms.

[[Page H2271]]

or direction relating to the use of the Federal utility's
transmission system, environmental protection, fish and
wildlife protection, flood control, navigation, water
delivery, or recreation; or
(B) authorize abrogation of any contract or treaty
obligation.
(3) Repeal.--Section 311 of title III of Appendix B of the
Act of October 27, 2000 (P.L. 106-377, section 1(a)(2); 114
Stat. 1441, 1441A-80; 16 U.S.C. 824n) is repealed.

SEC. 1235. STANDARD MARKET DESIGN.

(a) Remand.--The Commission's proposed rulemaking entitled
``Remedying Undue Discrimination through Open Access
Transmission Service and Standard Electricity Market Design''
(Docket No. RM01-12-000) (``SMD NOPR'') is remanded to the
Commission for reconsideration. No final rule mandating a
standard electricity market design pursuant to the proposed
rulemaking, including any rule or order of general
applicability within the scope of the proposed rulemaking,
may be issued before October 31, 2006, or take effect before
December 31, 2006. Any final rule issued by the Commission
pursuant to the proposed rulemaking shall be preceded by a
second notice of proposed rulemaking issued after the date of
enactment of this Act and an opportunity for public comment.
(b) Savings Clause.--This section shall not be construed to
modify or diminish any authority or obligation the Commission
has under this Act, the Federal Power Act, or other
applicable law, including, but not limited to, any authority
to--
(1) issue any rule or order (of general or particular
applicability) pursuant to any such authority or obligation;
or
(2) act on a filing or filings by 1 or more transmitting
utilities for the voluntary formation of a Regional
Transmission Organization or Independent System Operator (as
defined in the Federal Power Act) (and related market
structures or rules) or voluntary modification of an existing
Regional Transmission Organization or Independent System
Operator (and related market structures or rules).

SEC. 1236. NATIVE LOAD SERVICE OBLIGATION.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

``(a) Meeting Service Obligations.--(1) Any load-serving
entity that, as of the date of enactment of this section--
``(A) owns generation facilities, markets the output of
Federal generation facilities, or holds rights under 1 or
more wholesale contracts to purchase electric energy, for the
purpose of meeting a service obligation, and
``(B) by reason of ownership of transmission facilities, or
1 or more contracts or service agreements for firm
transmission service, holds firm transmission rights for
delivery of the output of such generation facilities or such
purchased energy to meet such service obligation,
is entitled to use such firm transmission rights, or,
equivalent tradable or financial transmission rights, in
order to deliver such output or purchased energy, or the
output of other generating facilities or purchased energy to
the extent deliverable using such rights, to the extent
required to meet its service obligation.
``(2) To the extent that all or a portion of the service
obligation covered by such firm transmission rights or
equivalent tradable or financial transmission rights is
transferred to another load-serving entity, the successor
load-serving entity shall be entitled to use the firm
transmission rights or equivalent tradable or financial
transmission rights associated with the transferred service
obligation. Subsequent transfers to another load-serving
entity, or back to the original load-serving entity, shall be
entitled to the same rights.
``(3) The Commission shall exercise its authority under
this Act in a manner that facilitates the planning and
expansion of transmission facilities to meet the reasonable
needs of load-serving entities to satisfy their service
obligations, and enables load-serving entities to secure firm
transmission rights (or equivalent tradable or financial
rights) on a long term basis for long term power supply
arrangements made, or planned, to meet such needs.
``(b) Allocation of Transmission Rights.--Nothing in
subsections (a)(1) and (a) (2) of this section shall affect
any existing or future methodology employed by an RTO or ISO
for allocating or auctioning transmission rights if such RTO
or ISO was authorized by the Commission to allocate or
auction financial transmission rights on its system as of
January 1, 2005, and the Commission determines that any
future allocation or auction is just, reasonable and not
unduly discriminatory or preferential, provided, however,
that if such an RTO or ISO never allocated financial
transmission rights on its system that pertained to a period
before January 1, 2005, with respect to any application by
such RTO or ISO that would change its methodology the
Commission shall exercise its authority in a manner
consistent with the Act and the policies expressed in
subsections (a)(1) and (a)(2) as applied to firm transmission
rights held by a load serving entity as of January 1, 2005,
to the extent the associated generation ownership or power
purchase arrangements remain in effect.
``(c) Certain Transmission Rights.--The Commission may
exercise authority under this Act to make transmission rights
not used to meet an obligation covered by subsection (a)
available to other entities in a manner determined by the
Commission to be just, reasonable, and not unduly
discriminatory or preferential.
``(d) Obligation to Build.--Nothing in this Act shall
relieve a load-serving entity from any obligation under State
or local law to build transmission or distribution facilities
adequate to meet its service obligations.
``(e) Contracts.--Nothing in this section shall provide a
basis for abrogating any contract or service agreement for
firm transmission service or rights in effect as of the date
of the enactment of this subsection. If an ISO in the Western
Interconnection had allocated financial transmission rights
prior to the date of enactment of this section but had not
done so with respect to one or more load-serving entities'
firm transmission rights held under contracts to which the
preceding sentence applies (or held by reason of ownership of
transmission facilities), such load-serving entities may not
be required, without their consent, to convert such firm
transmission rights to tradable or financial rights, except
where the load-serving entity has voluntarily joined the ISO
as a participating transmission owner (or its successor) in
accordance with the ISO tariff.
``(f) Water Pumping Facilities.--The Commission shall
ensure that any entity described in section 201(f) that owns
transmission facilities used predominately to support its own
water pumping facilities shall have, with respect to such
facilities, protections for transmission service comparable
to those provided to load-serving entities pursuant to this
section.
``(g) FERC Rulemaking on Long-Term Transmission Rights in
Organized Markets.--Within one year after the date of
enactment of this section and after notice and an opportunity
for comment, the Commission shall by rule or order implement
subsection (a)(3) in Commission-approved RTOs and ISOs with
organized electricity markets.
``(h) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).
``(i) Jurisdiction.--This section does not authorize the
Commission to take any action not otherwise within its
jurisdiction.
``(j) Effect of Exercising Rights.--An entity that lawfully
exercises rights granted under subsection (a) shall not be
considered by such action as engaging in undue discrimination
or preference under this Act.
``(k) TVA Area.--For purposes of subsection (a)(1)(B), a
load-serving entity that is located within the service area
of the Tennessee Valley Authority and that has a firm
wholesale power supply contract with the Tennessee Valley
Authority shall be deemed to hold firm transmission rights
for the transmission of such power.
``(l) Definitions.--For purposes of this section:
``(1) The term `distribution utility' means an electric
utility that has a service obligation to end-users or to a
State utility or electric cooperative that, directly or
indirectly, through 1 or more additional State utilities or
electric cooperatives, provides electric service to end-
users.
``(2) The term `load-serving entity' means a distribution
utility or an electric utility that has a service obligation.
``(3) The term `service obligation' means a requirement
applicable to, or the exercise of authority granted to, an
electric utility under Federal, State or local law or under
long-term contracts to provide electric service to end-users
or to a distribution utility.
``(4) The term `State utility' means a State or any
political subdivision of a State, or any agency, authority,
or instrumentality of any 1 or more of the foregoing, or a
corporation which is wholly owned, directly or indirectly, by
any 1 or more of the foregoing, competent to carry on the
business of developing, transmitting, utilizing or
distributing power''.

SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

(a) Study.--The Secretary of Energy, in coordination and
consultation with the States, shall conduct a study on--
(1) the procedures currently used by electric utilities to
perform economic dispatch;
(2) identifying possible revisions to those procedures to
improve the ability of nonutility generation resources to
offer their output for sale for the purpose of inclusion in
economic dispatch; and
(3) the potential benefits to residential, commercial, and
industrial electricity consumers nationally and in each state
if economic dispatch procedures were revised to improve the
ability of nonutility generation resources to offer their
output for inclusion in economic dispatch.
(b) Definition.--The term ``economic dispatch'' when used
in this section means the operation of generation facilities
to produce energy at the lowest cost to reliably serve
consumers, recognizing any operational limits of generation
and transmission facilities.
(c) Report to Congress and the States.--Not later than 90
days after the date of enactment of this Act, and on a yearly
basis following, the Secretary of Energy shall submit a
report to Congress and the States on the results of the study
conducted under subsection (a), including recommendations to
Congress and the States for any suggested legislative or
regulatory changes.

Subtitle D--Transmission Rate Reform

SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

[[Page H2272]]

``SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT.

``(a) Rulemaking Requirement.--Within 1 year after the
enactment of this section, the Commission shall establish, by
rule, incentive-based (including, but not limited to
performance-based) rate treatments for the transmission of
electric energy in interstate commerce by public utilities
for the purpose of benefiting consumers by ensuring
reliability and reducing the cost of delivered power by
reducing transmission congestion. Such rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting
capital investment in the enlargement, improvement,
maintenance and operation of facilities for the transmission
of electric energy in interstate commerce;
``(2) provide a return on equity that attracts new
investment in transmission facilities (including related
transmission technologies);
``(3) encourage deployment of transmission technologies and
other measures to increase the capacity and efficiency of
existing transmission facilities and improve the operation of
such facilities; and
``(4) allow recovery of all prudently incurred costs
necessary to comply with mandatory reliability standards
issued pursuant to section 215 of this Act.
The Commission may, from time to time, revise such rule.
``(b) Additional Incentives for RTO Participation.--In the
rule issued under this section, the Commission shall, to the
extent within its jurisdiction, provide for incentives to
each transmitting utility or electric utility that joins a
Regional Transmission Organization or Independent System
Operator. Incentives provided by the Commission pursuant to
such rule shall include--
``(1) recovery of all prudently incurred costs to develop
and participate in any proposed or approved RTO, ISO, or
independent transmission company;
``(2) recovery of all costs previously approved by a State
commission which exercised jurisdiction over the transmission
facilities prior to the utility's participation in the RTO or
ISO, including costs necessary to honor preexisting
transmission service contracts, in a manner which does not
reduce the revenues the utility receives for transmission
services for a reasonable transition period after the utility
joins the RTO or ISO;
``(3) recovery as an expense in rates of the costs
prudently incurred to conduct transmission planning and
reliability activities, including the costs of participating
in RTO, ISO and other regional planning activities and
design, study and other precertification costs involved in
seeking permits and approvals for proposed transmission
facilities;
``(4) a current return in rates for construction work in
progress for transmission facilities and full recovery of
prudently incurred costs for constructing transmission
facilities;
``(5) formula transmission rates; and
``(6) a maximum 15 year accelerated depreciation on new
transmission facilities for rate treatment purposes.

The Commission shall ensure that any costs recoverable
pursuant to this subsection may be recovered by such utility
through the transmission rates charged by such utility or
through the transmission rates charged by the RTO or ISO that
provides transmission service to such utility.
``(c) Just and Reasonable Rates.--All rates approved under
the rules adopted pursuant to this section, including any
revisions to such rules, are subject to the requirement of
sections 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly
discriminatory or preferential.''.

Subtitle E--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

``In the case of each standard established by paragraphs (11)
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) of section 111(d) in the case of
any electric utility in a State if, before the enactment of
this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of each standard established by paragraphs (11)
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.

SEC. 1252. SMART METERING.

[[Page H2273]]

``(F) Notwithstanding subsections (b) and (c) of section
112, each State regulatory authority shall, not later than 18
months after the date of enactment of this paragraph conduct
an investigation in accordance with section 115(i) and issue
a decision whether it is appropriate to implement the
standards set out in subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
(1) By inserting in subsection (b) after the phrase ``the
standard for time-of-day rates established by section
111(d)(3)'' the following: ``and the standard for time-based
metering and communications established by section
111(d)(14)''.
(2) By inserting in subsection (b) after the phrase ``are
likely to exceed the metering'' the following: ``and
communications''.
(3) By adding the at the end the following:
``(i) Time-Based Metering and Communications.--In making a
determination with respect to the standard established by
section 111(d)(14), the investigation requirement of section
111(d)(14)(F) shall be as follows: Each State regulatory
authority shall conduct an investigation and issue a decision
whether or not it is appropriate for electric utilities to
provide and install time-based meters and communications
devices for each of their customers which enable such
customers to participate in time-based pricing rate schedules
and other demand response programs.''.
(c) Federal Assistance on Demand Response.--Section 132(a)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2642(a)) is amended by striking ``and'' at the end of
paragraph (3), striking the period at the end of paragraph
(4) and inserting ``; and'', and by adding the following at
the end thereof:
``(5) technologies, techniques, and rate-making methods
related to advanced metering and communications and the use
of these technologies, techniques and methods in demand
response programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended
by adding the following at the end thereof:
``(d) Demand Response.--The Secretary shall be responsible
for--
``(1) educating consumers on the availability, advantages,
and benefits of advanced metering and communications
technologies, including the funding of demonstration or pilot
projects;
``(2) working with States, utilities, other energy
providers and advanced metering and communications experts to
identify and address barriers to the adoption of demand
response programs; and
``(3) not later than 180 days after the date of enactment
of the Energy Policy Act of 2005, providing Congress with a
report that identifies and quantifies the national benefits
of demand response and makes a recommendation on achieving
specific levels of such benefits by January 1, 2007.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--It is the policy of the United States to
encourage States to coordinate, on a regional basis, State
energy policies to provide reliable and affordable demand
response services to the public.
(2) Technical assistance.--The Secretary of Energy shall
provide technical assistance to States and regional
organizations formed by 2 or more States to assist them in--
(A) identifying the areas with the greatest demand response
potential;
(B) identifying and resolving problems in transmission and
distribution networks, including through the use of demand
response;
(C) developing plans and programs to use demand response to
respond to peak demand or emergency needs; and
(D) identifying specific measures consumers can take to
participate in these demand response programs.
(3) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the Commission
shall prepare and publish an annual report, by appropriate
region, that assesses demand response resources, including
those available from all consumer classes, and which
identifies and reviews--
(A) saturation and penetration rate of advanced meters and
communications technologies, devices and systems;
(B) existing demand response programs and time-based rate
programs;
(C) the annual resource contribution of demand resources;
(D) the potential for demand response as a quantifiable,
reliable resource for regional planning purposes;
(E) steps taken to ensure that, in regional transmission
planning and operations, demand resources are provided
equitable treatment as a quantifiable, reliable resource
relative to the resource obligations of any load-serving
entity, transmission provider, or transmitting party; and
(F) regulatory barriers to improved customer participation
in demand response, peak reduction and critical period
pricing programs.
(f) Federal Encouragement of Demand Response Devices.--It
is the policy of the United States that time-based pricing
and other forms of demand response, whereby electricity
customers are provided with electricity price signals and the
ability to benefit by responding to them, shall be
encouraged, the deployment of such technology and devices
that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated, and
unnecessary barriers to demand response participation in
energy, capacity and ancillary service markets shall be
eliminated. It is further the policy of the United States
that the benefits of such demand response that accrue to
those not deploying such technology and devices, but who are
part of the same regional electricity entity, shall be
recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(4)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to the standard
established by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to the
standard established by paragraph (14) of section 111(d).''.
(h) Failure to Comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering
Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility within
the previous 3 years; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such utility
within the previous 3 years.''.
(2) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.

SEC. 1253. 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) Obligation to purchase.--After the date of enactment
of this subsection, no electric utility shall be required to
enter into a new contract or obligation to purchase electric
energy from a qualifying cogeneration facility or a
qualifying small power production facility under this section
if the Commission finds that the qualifying cogeneration
facility or qualifying small power production facility has
nondiscriminatory access to--
``(A)(i) independently administered, auction-based day
ahead and real time wholesale markets for the sale of
electric energy; and (ii) wholesale markets for long-term
sales of capacity and electric energy; or
``(B)(i) transmission and interconnection services that are
provided by a Commission-approved regional transmission
entity and administered pursuant to an open access
transmission tariff that affords nondiscriminatory treatment
to all customers; and (ii) competitive wholesale markets that
provide a meaningful opportunity to sell capacity, including
long-term and short-term sales, and electric energy,
including long-term, short-term and real-time sales, to
buyers other than the utility to which the qualifying
facility is interconnected. In determining whether a
meaningful opportunity to sell exists, the Commission shall
consider, among other factors, evidence of transactions
within the relevant market; or
``(C) wholesale markets for the sale of capacity and
electric energy that are, at a minimum, of comparable
competitive quality as markets described in subparagraphs (A)
and (B).
``(2) Revised purchase and sale obligation for new
facilities.--(A) After the date of enactment of this
subsection, no electric utility shall be required pursuant to
this section to enter into a new contract or obligation to
purchase from or sell electric energy

[[Page H2274]]

to a facility that is not an existing qualifying cogeneration
facility unless the facility meets the criteria for
qualifying cogeneration facilities established by the
Commission pursuant to the rulemaking required by subsection
(n).
``(B) For the purposes of this paragraph, the term
`existing qualifying cogeneration facility' means a facility
that--
``(i) was a qualifying cogeneration facility on the date of
enactment of subsection (m); or
``(ii) had filed with the Commission a notice of self-
certification, self recertification or an application for
Commission certification under 18 C.F.R. 292.207 prior to the
date on which the Commission issues the final rule required
by subsection (n).
``(3) Commission review.--Any electric utility may file an
application with the Commission for relief from the mandatory
purchase obligation pursuant to this subsection on a service
territory-wide basis. Such application shall set forth the
factual basis upon which relief is requested and describe why
the conditions set forth in subparagraphs (A), (B) or (C) of
paragraph (1) of this subsection have been met. After notice,
including sufficient notice to potentially affected
qualifying cogeneration facilities and qualifying small power
production facilities, and an opportunity for comment, the
Commission shall make a final determination within 90 days of
such application regarding whether the conditions set forth
in subparagraphs (A), (B) or (C) of paragraph (1) have been
met.
``(4) Reinstatement of obligation to purchase.--At any time
after the Commission makes a finding under paragraph (3)
relieving an electric utility of its obligation to purchase
electric energy, a qualifying cogeneration facility, a
qualifying small power production facility, a State agency,
or any other affected person may apply to the Commission for
an order reinstating the electric utility's obligation to
purchase electric energy under this section. Such application
shall set forth the factual basis upon which the application
is based and describe why the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) of this
subsection are no longer met. After notice, including
sufficient notice to potentially affected utilities, and
opportunity for comment, the Commission shall issue an order
within 90 days of such application reinstating the electric
utility's obligation to purchase electric energy under this
section if the Commission finds that the conditions set forth
in subparagraphs (A), (B) or (C) of paragraph (1) which
relieved the obligation to purchase, are no longer met.
``(5) Obligation to sell.--After the date of enactment of
this subsection, no electric utility shall be required to
enter into a new contract or obligation to sell electric
energy to a qualifying cogeneration facility or a qualifying
small power production facility under this section if the
Commission finds that--
``(A) competing retail electric suppliers are willing and
able to sell and deliver electric energy to the qualifying
cogeneration facility or qualifying small power production
facility; and
``(B) the electric utility is not required by State law to
sell electric energy in its service territory.
``(6) No effect on existing rights and remedies.--Nothing
in this subsection affects the rights or remedies of any
party under any contract or obligation, in effect or pending
approval before the appropriate State regulatory authority or
non-regulated electric utility on the date of enactment of
this subsection, to purchase electric energy or capacity from
or to sell electric energy or capacity to a qualifying
cogeneration facility or qualifying small power production
facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
``(7) Recovery of costs.--(A) The Commission shall issue
and enforce such regulations as are necessary to ensure that
an electric utility that purchases electric energy or
capacity from a qualifying cogeneration facility or
qualifying small power production facility in accordance with
any legally enforceable obligation entered into or imposed
under this section recovers all prudently incurred costs
associated with the purchase.
``(B) 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.).
``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not
later than 180 days after the date of enactment of this
section, the Commission shall issue a rule revising the
criteria in 18 C.F.R. 292.205 for new qualifying cogeneration
facilities seeking to sell electric energy pursuant to
section 210 of this Act to ensure--
``(i) that the thermal energy output of a new qualifying
cogeneration facility is used in a productive and beneficial
manner;
``(ii) the electrical, thermal, and chemical output of the
cogeneration facility is used fundamentally for industrial,
commercial, or institutional purposes and is not intended
fundamentally for sale to an electric utility, taking into
account technological, efficiency, economic, and variable
thermal energy requirements, as well as State laws applicable
to sales of electric energy from a qualifying facility to its
host facility; and
``(iii) continuing progress in the development of efficient
electric energy generating technology.
``(B) The rule issued pursuant to paragraph (1)(A) of this
subsection shall be applicable only to facilities that seek
to sell electric energy pursuant to section 210 of this Act.
For all other purposes, except as specifically provided in
subsection (m)(2)(A), qualifying facility status shall be
determined in accordance with the rules and regulations of
this Act.
``(2) Notwithstanding rule revisions under paragraph (1),
the Commission's criteria for qualifying cogeneration
facilities in effect prior to the date on which the
Commission issues the final rule required by paragraph (1)
shall continue to apply to any cogeneration facility that--
``(A) was a qualifying cogeneration facility on the date of
enactment of subsection (m), or
``(B) had filed with the Commission a notice of self-
certification, self-recertification or an application for
Commission certification under 18 C.F.R. 292.207 prior to the
date on which the Commission issues the final rule required
by paragraph (1).''.
(b) Elimination of Ownership Limitations.--
(1) Qualifying small power production facility.--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 fuel use, fuel efficiency, and
reliability) as the Commission may, by rule, prescribe;''.
(2) Qualifying cogeneration facility.--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. 1254. INTERCONNECTION.

(a) Adoption of Standards.--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:
``(16) Interconnection.--Each electric utility shall make
available, upon request, interconnection service to any
electric consumer that the electric utility serves. For
purposes of this paragraph, the term `interconnection
service' means service to an electric consumer under which an
on-site generating facility on the consumer's premises shall
be connected to the local distribution facilities.
Interconnection services shall be offered based upon the
standards developed by the Institute of Electrical and
Electronics Engineers: IEEE Standard 1547 for Interconnecting
Distributed Resources with Electric Power Systems, as they
may be amended from time to time. In addition, agreements and
procedures shall be established whereby the services are
offered shall promote current best practices of
interconnection for distributed generation, including but not
limited to practices stipulated in model codes adopted by
associations of state regulatory agencies. All such
agreements and procedures shall be just and reasonable, and
not unduly discriminatory or preferential.''.
(b) Compliance.--
(1) Time limitations.--Section 112 (b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b))
is amended by adding at the end the following:
``(3)(A) Not later than one year after the enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking
authority) and each nonregulated utility shall commence the
consideration referred to in section 111, or set a hearing
date for consideration, with respect to the standard
established by paragraph (16) of section 111(d).
``(B) Not later than two years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to
each standard established by paragraph (16) of section
111(d).''.
(2) Failure to comply.--Section 112 (d) f the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622 (c))
is amended by adding at the end the following: ``In the case
of the standard established by paragraph (16), the reference
contained in this subsection to the date of enactment of this
Act shall be deemed to be a reference to the date of
enactment of paragraph (16).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (16) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility; or

[[Page H2275]]

``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of each standard established by paragraph (16)
of section 111(d), the reference contained in this subsection
to the date of enactment of the Act shall be deemed to be a
reference to the date of enactment of paragraph (16).''.

Subtitle F--Repeal of PUHCA

SEC. 1261. SHORT TITLE.

This subtitle may be cited as the ``Public Utility Holding
Company Act of 2005''.

SEC. 1262. DEFINITIONS.

For purposes of this subtitle:
(1) Affiliate.--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) Associate company.--The term ``associate company'' of a
company means any company in the same holding company system
with such company.
(3) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(4) Company.--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) Electric utility company.--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) Exempt wholesale generator and foreign utility
company.--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) Gas utility company.--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) Holding company.--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 1 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) Holding company system.--The term ``holding company
system'' means a holding company, together with its
subsidiary companies.
(10) Jurisdictional rates.--The term ``jurisdictional
rates'' means rates accepted or 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) Natural gas company.--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) Person.--The term ``person'' means an individual or
company.
(13) Public utility.--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) Public-utility company.--The term ``public-utility
company'' means an electric utility company or a gas utility
company.
(15) State commission.--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) Subsidiary company.--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 1 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) Voting security.--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. 1263. 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. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.

(a) In General.--Each holding company and each associate
company thereof shall maintain, and shall make available to
the Commission, such books, accounts, memoranda, and other
records as the Commission determines are 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 determines are 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 determines are 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. 1265. 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 in a
proceeding before the State commission;
(2) the State commission determines 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 1 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. 1266. EXEMPTION AUTHORITY.

(a) Rulemaking.--Not later than 90 days after the effective
date of this subtitle, the Commission shall issue a final
rule to exempt from the requirements of section 1264
(relating to Federal access to books and records) any person
that is a holding company, solely with respect to 1 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 1264
(relating to Federal access to books and records) if, upon
application or upon the motion of the Commission--
(1) the Commission finds that the books, accounts,
memoranda, and other records of

[[Page H2276]]

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. 1267. 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 issuance 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. 1268. 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), (3), or (4) acting as such in the
course of his or her official duty.

SEC. 1269. 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. 1270. 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. 1271. SAVINGS PROVISIONS.

(a) In General.--Nothing in this subtitle, or otherwise in
the Public Utility Holding Company Act of 1935, or rules,
regulations, or orders thereunder, 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 date of enactment of this Act, if that person
continues to comply with the terms (other than an expiration
date or termination date) of any such authorization, whether
by rule or by order.
(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.) or the Natural Gas
Act (15 U.S.C. 717 et seq.).

SEC. 1272. IMPLEMENTATION.

Not later than 12 months after the date of enactment of
this subtitle, the Commission shall--
(1) issue such regulations as may be necessary or
appropriate to implement this subtitle (other than section
1265, relating to State access to books and records); and
(2) submit to 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. 1273. 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. 1274. EFFECTIVE DATE.

(a) In General.--Except for section 1272 (relating to
implementation), this subtitle shall take effect 12 months
after the date of enactment of this subtitle.
(b) Compliance With Certain Rules.--If the Commission
approves and makes effective any final rulemaking modifying
the standards of conduct governing entities that own,
operate, or control facilities for transmission of
electricity in interstate commerce or transportation of
natural gas in interstate commerce prior to the effective
date of this subtitle, any action taken by a public-utility
company or utility holding company to comply with the
requirements of such rulemaking shall not subject such
public-utility company or utility holding company to any
regulatory requirement applicable to a holding company under
the Public Utility Holding Company Act of 1935 (15 U.S.C. 79
et seq.).

SEC. 1275. SERVICE ALLOCATION.

(a) FERC Review.--In the case of non-power goods or
administrative or management services provided by an
associate company organized specifically for the purpose of
providing such goods or services to any public utility in the
same holding company system, at the election of the system or
a State commission having jurisdiction over the public
utility, the Commission, after the effective date of this
subtitle, shall review and authorize the allocation of the
costs for such goods or services to the extent relevant to
that associate company in order to assure that each
allocation is appropriate for the protection of investors and
consumers of such public utility.
(b) Cost Allocation.--Nothing in this section shall
preclude the Commission or a State commission from exercising
its jurisdiction under other applicable law with respect to
the review or authorization of any costs allocated to a
public utility in a holding company system located in the
affected State as a result of the acquisition of non-power
goods or administrative and management services by such
public utility from an associate company organized
specifically for that purpose.
(c) Rules.--Not later than 6 months after the date of
enactment of this Act, the Commission shall issue rules
(which rules shall be effective no earlier than the effective
date of this subtitle) to exempt from the requirements of
this section any company in a holding company system whose
public utility operations are confined substantially to a
single State and any other class of transactions that the
Commission finds is not relevant to the jurisdictional rates
of a public utility.
(d) Public Utility.--As used in this section, the term
``public utility'' has the meaning given that term in section
201(e) of the Federal Power Act.

SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 1277. 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)(5) of the Federal
Power Act (16 U.S.C. 824(g)(5)) is amended by striking
``1935'' and inserting ``2005''.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m)
is amended by striking ``1935'' and inserting ``2005''.

Subtitle G--Market Transparency, Enforcement, and Consumer Protection

SEC. 1281. MARKET TRANSPARENCY RULES.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 220. MARKET TRANSPARENCY RULES.

``(a) In General.--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 the Commission and the public with access to such
information as is necessary or appropriate to facilitate
price transparency and participation in markets subject to
the Commission's jurisdiction under this Act. Such systems
shall provide information about the availability and market
price of wholesale electric energy and transmission services
to the Commission, State commissions, buyers and sellers of
wholesale electric energy, users of transmission services,
and the public on a timely basis. The Commission shall have
authority to obtain such information from any electric
utility or transmitting utility, including any entity
described in section 201(f).
``(b) Exemptions.--The Commission shall exempt from
disclosure information it determines would, if disclosed, be
detrimental to the operation of an effective market or
jeopardize system security. This section shall not apply to
transactions for the purchase or sale of wholesale electric
energy or transmission services within the area described in
section 212(k)(2)(A). In determining the information to be
made available under this section and time to make such
information available, the Commission shall seek to ensure
that consumers and competitive markets are protected from the
adverse effects of potential collusion or other anti-
competitive behaviors that can be facilitated by untimely
public disclosure of transaction-specific information.
``(c) Commodity Futures Trading Commission.--This section
shall not affect the exclusive jurisdiction of the Commodity
Futures Trading Commission with respect to accounts,
agreements, contracts, or transactions in commodities under
the Commodity Exchange Act (7 U.S.C. 1 et seq.).
``(d) Savings Provision.--In exercising its authority under
this section, the Commission shall not--
``(1) compete with, or displace from the market place, any
price publisher; or
``(2) regulate price publishers or impose any requirements
on the publication of information.''.

SEC. 1282. MARKET MANIPULATION.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

``No person or other entity (including an entity described
in section 201(f)) shall willfully and knowingly report any
information relating to the price of electricity sold at
wholesale or availability of transmission capacity, which
information the person or any other entity knew to be false
at the time of the reporting, to a Federal agency with intent
to fraudulently affect the data being compiled by such
Federal agency.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

[[Page H2277]]

``(1) enters into a contract or other arrangement to
purchase from, or sell to, any other person or other entity
electric energy at wholesale;
``(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a
financially offsetting trade with such other person or entity
for the same such electric energy, at the same location,
price, quantity and terms so that, collectively, the purchase
and sale transactions in themselves result in no financial
gain or loss; and
``(3) enters into the contract or arrangement with a
specific intent to fraudulently affect reported revenues,
trading volumes, or prices.''.

SEC. 1283. ENFORCEMENT.

(a) Complaints.--Section 306 of the Federal Power Act (16
U.S.C. 825e) is amended as follows:
(1) By inserting ``electric utility,'' after ``Any
person,''.
(2) By inserting ``, transmitting utility,'' after
``licensee'' each place it appears.
(b) Review of Commission Orders.--Section 313(a) of the
Federal Power Act (16 U.S.C. 8251) is amended by inserting
``electric utility,'' after ``person,'' in the first 2 places
it appears and by striking ``any person unless such person''
and inserting ``any entity unless such entity''.
(c) Investigations.--Section 307(a) of the Federal Power
Act (16 U.S.C. 825f(a)) is amended as follows:
(1) By inserting ``, electric utility, transmitting
utility, or other entity'' after ``person'' each time it
appears.
(2) By striking the period at the end of the first sentence
and inserting the following: ``or in obtaining information
about the sale of electric energy at wholesale in interstate
commerce and the transmission of electric energy in
interstate commerce.''.
(d) Criminal Penalties.--Section 316 of the Federal Power
Act (16 U.S.C. 825o) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting
``5 years'';
(2) in subsection (b), by striking ``$500'' and inserting
``$25,000''; and
(3) by striking subsection (c).
(e) Civil Penalties.--Section 316A of the Federal Power Act
(16 U.S.C. 825o-1) is amended as follows:
(1) In subsections (a) and (b), by striking ``section 211,
212, 213, or 214'' each place it appears and inserting ``Part
II''.
(2) In subsection (b), by striking ``$10,000'' and
inserting ``$1,000,000''.

SEC. 1284. REFUND EFFECTIVE DATE.

Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b))
is amended as follows:
(1) By striking ``the date 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
``the date of the filing of such complaint nor later than 5
months after the filing of such complaint''.
(2) By striking ``60 days after'' in the third sentence and
inserting ``of''.
(3) By striking ``expiration of such 60-day period'' in the
third sentence and inserting ``publication date''.
(4) By striking the fifth sentence and inserting the
following: ``If no final decision is rendered by the
conclusion of the 180-day period commencing upon initiation
of a proceeding pursuant to this section, the Commission
shall state the reasons why it has failed to do so and shall
state its best estimate as to when it reasonably expects to
make such decision.''.

SEC. 1285. REFUND AUTHORITY.

Section 206 of the Federal Power Act (16 U.S.C. 824e) is
amended by adding the following new subsection at the end
thereof:
``(e)(1) Except as provided in paragraph (2), if an entity
described in section 201(f) voluntarily makes a short-term
sale of electric energy and the sale violates Commission
rules in effect at the time of the sale, such entity shall be
subject to the Commission's refund authority under this
section with respect to such violation.
``(2) This section shall not apply to--
``(A) any entity that sells less than 8,000,000 megawatt
hours of electricity per year; or
``(B) any electric cooperative.
``(3) For purposes of this subsection, the term `short-term
sale' means an agreement for the sale of electric energy at
wholesale in interstate commerce that is for a period of 31
days or less (excluding monthly contracts subject to
automatic renewal).
``(4) The Commission shall have refund authority under
subsection (e)(1) with respect to a voluntary short-term sale
of electric energy by the Bonneville Power Administration (in
this section `Bonneville') only if the sale is at an unjust
and unreasonable rate and, in that event, may order a refund
only for short-term sales made by Bonneville at rates that
are higher than the highest just and reasonable rate charged
by any other entity for a short-term sale of electric energy
in the same geographic market for the same, or most nearly
comparable, period as the sale by Bonneville.
``(5) With respect to any Federal power marketing agency or
the Tennessee Valley Authority, the Commission shall not
assert or exercise any regulatory authority or powers under
subsection (e)(1) other than the ordering of refunds to
achieve a just and reasonable rate.''.

SEC. 1286. SANCTITY OF CONTRACT.

(a) In General.--The Federal Energy Regulatory Commission
(in this section, ``the Commission'') shall have no authority
to abrogate or modify any provision of an executed contract
or executed contract amendment described in subsection (b)
that has been entered into or taken effect, except upon a
finding that failure to take such action would be contrary to
the public interest.
(b) Limitation.--Except as provided in subsection (c), this
section shall apply only to a contract or contract
amendment--
(1) executed on or after the date of enactment of this Act;
and
(2) entered into--
(A) for the purchase or sale of electric energy under
section 205 of the Federal Power Act (16 U.S.C. 824d) where
the seller has been authorized by the Commission to charge
market-based rates; or
(B) under section 4 of the Natural Gas Act (15 U.S.C. 717c)
where the natural gas company has been authorized by the
Commission to charge market-based rates for the service
described in the contract.
(c) Exclusion.--This section shall not apply to an executed
contract or executed contract amendment that expressly
provides for a standard of review other than the public
interest standard.
(d) Savings Provision.--With respect to contracts to which
this section does not apply, nothing in this section alters
existing law regarding the applicable standard of review for
a contract subject to the jurisdiction of the Commission.

SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

Subtitle H--Merger Reform

SEC. 1291. MERGER REVIEW REFORM AND ACCOUNTABILITY.

(a) Merger Review Reform.--Within 180 days after the date
of enactment of this Act, the Secretary of Energy, in
consultation with the Federal Energy Regulatory Commission
and the Attorney General of the United States, shall prepare,
and transmit to Congress each of the following:
(1) A study of the extent to which the authorities vested
in the Federal Energy Regulatory Commission under section 203
of the Federal Power Act are duplicative of authorities
vested in--
(A) other agencies of Federal and State Government; and
(B) the Federal Energy Regulatory Commission, including
under sections 205 and 206 of the Federal Power Act.
(2) Recommendations on reforms to the Federal Power Act
that would eliminate any unnecessary duplication in the
exercise of regulatory authority or unnecessary delays in the
approval (or disapproval) of applications for the sale,
lease, or other disposition of public utility facilities.
(b) Merger Review Accountability.--Not later than 1 year
after the date of enactment of this Act and annually
thereafter, with respect to all orders issued within the
preceding year that impose a condition on a sale, lease, or
other disposition of public utility facilities under section
203(b) of the Federal Power Act, the Federal Energy
Regulatory Commission shall transmit a report to Congress
explaining each of the following:
(1) The condition imposed.
(2) Whether the Commission could have imposed such
condition by exercising its authority under any provision of
the Federal Power Act other than under section 203(b).
(3) If the Commission could not have imposed such condition
other than under section 203(b), why the Commission
determined that such condition was consistent with the public
interest.

SEC. 1292. ELECTRIC UTILITY MERGERS.

(a) Amendment.--Section 203(a) of the Federal Power Act (16
U.S.C. 824b(a)) is amended to read as follows:

[[Page H2278]]

``(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 $10,000,000;
``(B) merge or consolidate, directly or indirectly, such
facilities or any part thereof with those of any other
person, by any means whatsoever; or
``(C) purchase, acquire, or take any security with a value
in excess of $10,000,000 of any other public utility.
``(2) No holding company in a holding company system that
includes a public utility shall purchase, acquire, or take
any security with a value in excess of $10,000,000 of, or, by
any means whatsoever, directly or indirectly, merge or
consolidate with, a public utility or a holding company in a
holding company system that includes a public utility with a
value in excess of $10,000,000 without first having secured
an order of the Commission authorizing it to do so.
``(3) Upon receipt of an 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, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it finds
that the proposed transaction will be consistent with the
public interest. In evaluating whether a transaction will be
consistent with the public interest, the Commission shall
consider whether the proposed transaction--
``(A) will adequately protect consumer interests;
``(B) will be consistent with competitive wholesale
markets;
``(C) will impair the financial integrity of any public
utility that is a party to the transaction or an associate
company of any party to the transaction; and
``(D) satisfies such other criteria as the Commission
considers consistent with the public interest.
``(5) The Commission shall, by rule, adopt procedures for
the expeditious consideration of applications for the
approval of dispositions, consolidations, or acquisitions
under this section. Such rules shall identify classes of
transactions, or specify criteria for transactions, that
normally meet the standards established in paragraph (4). The
Commission shall provide expedited review for such
transactions. The Commission shall grant or deny any other
application for approval of a transaction not later than 180
days after the application is filed. If the Commission does
not act within 180 days, such application shall be deemed
granted unless the Commission finds, based on good cause,
that further consideration is required to determine whether
the proposed transaction meets the standards of paragraph (4)
and issues an order tolling the time for acting on the
application for not more than 180 days, at the end of which
additional period the Commission shall grant or deny the
application.
``(6) For purposes of this subsection, the terms `associate
company', `holding company', and `holding company system'
have the meaning given those terms in the Public Utility
Holding Company Act of 2005.''.
(b) Effective Date.--The amendments made by this section
shall take effect 12 months after the date of enactment of
this section.

Subtitle I--Definitions

SEC. 1295. DEFINITIONS.

(a) 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.--The term `electric utility' means
any person or Federal or State agency (including any entity
described in section 201(f)) that sells electric energy; such
term includes the Tennessee Valley Authority and each Federal
power marketing administration.''.
(b) 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, operates, or controls facilities
used for the transmission of electric energy--
``(A) in interstate commerce; or
``(B) for the sale of electric energy at wholesale.''.
(c) Additional Definitions.--Section 3 of the Federal Power
Act (16 U.S.C. 796) is amended by adding at the end the
following:
``(26) Electric cooperative.--The term `electric
cooperative' means a cooperatively owned electric utility.
``(27) RTO.--The term `Regional Transmission Organization'
or `RTO' means an entity of sufficient regional scope
approved by the Commission to exercise operational or
functional control of facilities used for the transmission of
electric energy in interstate commerce and to ensure
nondiscriminatory access to such facilities.
``(28) ISO.--The term `Independent System Operator' or
`ISO' means an entity approved by the Commission to exercise
operational or functional control of facilities used for the
transmission of electric energy in interstate commerce and to
ensure nondiscriminatory access to such facilities.''.
(d) Commission.--For the purposes of this title, the term
``Commission'' means the Federal Energy Regulatory
Commission.
(e) Applicability.--Section 201(f) of the Federal Power Act
(16 U.S.C. 824(f)) is amended by adding after ``political
subdivision of a state,'' the following: ``an electric
cooperative that has financing under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that
sells less than 4,000,000 megawatt hours of electricity per
year,''.

Subtitle J--Technical and Conforming Amendments

SEC. 1297. CONFORMING AMENDMENTS.

The Federal Power Act is amended as follows:
(1) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is
amended as follows:
(A) In the first sentence by striking ``210, 211, and 212''
and inserting ``203(a)(2), 206(e), 210, 211, 211A, 212, 215,
216, 217, 218, 219, 220, 221, and 222''.
(B) In the second sentence by striking ``210 or 211'' and
inserting ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216,
217, 218, 219, 220, 221, and 222''.
(C) Section 201(b)(2) of such Act is amended by striking
``The'' in the first place it appears and inserting
``Notwithstanding section 201(f), the'' and in the second
sentence after ``any order'' by inserting ``or rule''.
(2) Section 201(e) of such Act is amended by striking
``210, 211, or 212'' and inserting ``206(e), 206(f), 210,
211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222''.
(3) Section 206 of such Act (16 U.S.C. 824e) is amended as
follows:
(A) In subsection (b), in the seventh sentence, by striking
``the public utility to make''.
(B) In the first sentence of subsection (a), by striking
``hearing had'' and inserting ``hearing held''.
(4) Section 211(c) of such Act (16 U.S.C. 824j(c)) is
amended by--
(A) striking ``(2)'';
(B) striking ``(A)'' and inserting ``(1)''
(C) striking ``(B)'' and inserting ``(2)''; and
(D) striking ``termination of modification'' and inserting
``termination or modification''.
(5) Section 211(d)(1) of such Act (16 U.S.C. 824j(d)(1)) is
amended by striking ``electric utility'' the second time it
appears and inserting ``transmitting utility''.
(6) Section 315 (c) of such Act (16 U.S.C. 825n(c)) is
amended by striking ``subsection'' and inserting ``section''.

Subtitle K--Economic Dispatch

SEC. 1298. ECONOMIC DISPATCH.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 223. JOINT BOARD ON ECONOMIC DISPATCH.

``(a) In General.--The Commission shall convene a joint
board pursuant to section 209 of this Act to study the issue
of security constrained economic dispatch for a market
region.
``(b) Membership.--The Commission shall request each State
to nominate a representative for such joint board.
``(c) Powers.--The board's sole authority shall be to
consider issues relevant to what constitutes `security
constrained economic dispatch' and how such a mode of
operating an electric energy system affects or enhances the
reliability and affordability of service to customers.
``(d) Report to the Congress.--The board shall issue a
report on these matters within one year of enactment of this
section, including any consensus recommendations for
statutory or regulatory reform.''.

TITLE XIII--ENERGY TAX INCENTIVES

SEC. 1300. SHORT TITLE; ETC.

(a) Short Title.--This title may be cited as the ``Enhanced
Energy Infrastructure and Technology Tax Act of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.

Subtitle A--Energy Infrastructure Tax Incentives

SEC. 1301. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR
PROPERTY.

(a) In General.--Subparagraph (C) of section 168(e)(3)
(relating to classification of certain property) is amended
by striking ``and'' at the end of clause (iii), by
redesignating clause (iv) as clause (v), and by inserting
after clause (iii) the following new clause:
``(iv) any natural gas gathering line, and''.
(b) Natural Gas Gathering Line.--Subsection (i) of section
168 is amended by inserting after paragraph (16) the
following new paragraph:
``(17) Natural gas gathering line.--The term `natural gas
gathering line' means--
``(A) the pipe, equipment, and appurtenances determined to
be a gathering line by the Federal Energy Regulatory
Commission, and
``(B) the pipe, equipment, and appurtenances used to
deliver natural gas from the wellhead or a commonpoint to the
point at which such gas first reaches--
``(i) a gas processing plant,
``(ii) an interconnection with a transmission pipeline for
which a certificate as an interstate transmission pipeline
has been issued by the Federal Energy Regulatory Commission,
``(iii) an interconnection with an intrastate transmission
pipeline, or
``(iv) a direct interconnection with a local distribution
company, a gas storage facility, or an industrial
consumer.''.

[[Page H2279]]

(c) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (C)(iii) the following:

``(C) (iv)........................................................14''.

(d) Alternative Minimum Tax Exception.--Subparagraph (B) of
section 56(a)(1) is amended by inserting before the period
the following: ``, or in section 168(e)(3)(C)(iv)''.
(e) Effective Date.--The amendments made by this section
shall apply to property placed in service after April 11,
2005.

SEC. 1302. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR
PROPERTY.

(a) In General.--Subparagraph (E) of section 168(e)(3)
(relating to classification of certain property) is amended
by striking ``and'' at the end of clause (v), by striking the
period at the end of clause (vi) and inserting ``, and'', and
by adding at the end the following new clause:
``(vii) any natural gas distribution line.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(vi) the following:

``(E) (vii).......................................................35''.

SEC. 1303. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR
PROPERTY.

(a) In General.--Subparagraph (E) of section 168(e)(3)
(relating to classification of certain property), as amended
by section 1302 of this title, is amended by striking ``and''
at the end of clause (vi), by striking the period at the end
of clause (vii) and inserting ``, and'', and by adding at the
end the following new clause:
``(viii) any section 1245 property (as defined in section
1245(a)(3)) used in the transmission at 69 or more kilovolts
of electricity for sale and the original use of which
commences with the taxpayer after April 11, 2005.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(vii) the following:

``(E) (viii)......................................................30''.

SEC. 1304. EXPANSION OF AMORTIZATION FOR CERTAIN ATMOSPHERIC
POLLUTION CONTROL FACILITIES IN CONNECTION WITH
PLANTS FIRST PLACED IN SERVICE AFTER 1975.

(a) Eligibility of Post-1975 Pollution Control
Facilities.--Subsection (d) of section 169 (relating to
definitions) is amended by adding at the end the following:
``(5) Special rule relating to certain atmospheric
pollution control facilities.--In the case of any atmospheric
pollution control facility which is placed in service after
April 11, 2005, and used in connection with an electric
generation plant or other property which is primarily coal
fired, paragraph (1) shall be applied without regard to the
phrase `in operation before January 1, 1976'.''.
(b) Treatment as New Identifiable Treatment Facility.--
Subparagraph (B) of section 169(d)(4) is amended to read as
follows:
``(B) Certain facilities placed in operation after april
11, 2005.--In the case of any facility described in paragraph
(1) solely by reason of paragraph (5), subparagraph (A) shall
be applied by substituting `April 11, 2005' for `December 31,
1968' each place it appears therein.''.
(c) Technical Amendment.--Section 169(d)(3) is amended by
striking ``Health, Education, and Welfare'' and inserting
``Health and Human Services''.
(d) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after April 11,
2005.

SEC. 1305. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A
NONCONVENTIONAL SOURCE.

(a) Treatment as Business Credit.--
(1) Credit moved to subpart relating to business related
credits.--The Internal Revenue Code of 1986 is amended by
redesignating section 29 as section 45J and by moving section
45J (as so redesignated) from subpart B of part IV of
subchapter A of chapter 1 to the end of subpart D of part IV
of subchapter A of chapter 1.
(2) Credit treated as business credit.--Section 38(b) is
amended by striking ``plus'' at the end of paragraph (18), by
striking the period at the end of paragraph (19) and
inserting ``, plus'', and by adding at the end the following:
``(20) the nonconventional source production credit
determined under section 45J(a).''.
(3) Conforming amendments.--
(A) Section 30(b)(3)(A) is amended by striking ``sections
27 and 29'' and inserting ``section 27''.
(B) Sections 43(b)(2), 45I(b)(2)(C)(i), and 613A(c)(6)(C)
are each amended by striking ``section 29(d)(2)(C)'' and
inserting ``section 45J(d)(2)(C)''.
(C) Section 45(e)(9) is amended--
(i) by striking ``section 29'' and inserting ``section
45J'', and
(ii) by inserting ``(or under section 29, as in effect on
the day before the date of enactment of the Enhanced Energy
Infrastructure and Technology Tax Act of 2005, for any prior
taxable year)'' before the period at the end thereof.
(D) Section 45I is amended--
(i) in subsection (c)(2)(A) by striking ``section
29(d)(5))'' and inserting ``section 45J(d)(5))'', and
(ii) in subsection (d)(3) by striking ``section 29'' both
places it appears and inserting ``section 45J''.
(E) Section 45J(a), as redesignated by paragraph (1), is
amended by striking ``There shall be allowed as a credit
against the tax imposed by this chapter for the taxable
year'' and inserting ``For purposes of section 38, if the
taxpayer elects to have this section apply, the
nonconventional source production credit determined under
this section for the taxable year is''.
(F) Section 45J(b), as so redesignated, is amended by
striking paragraph (6).
(G) Section 53(d)(1)(B)(iii) is amended by striking ``under
section 29'' and all that follows through ``or not allowed''.
(H) Section 55(c)(3) is amended by striking ``29(b)(6),''.
(I) Subsection (a) of section 772 is amended by inserting
``and'' at the end of paragraph (9), by striking paragraph
(10), and by redesignating paragraph (11) as paragraph (10).
(J) Paragraph (5) of section 772(d) is amended by striking
``the foreign tax credit, and the credit allowable under
section 29'' and inserting ``and the foreign tax credit''.
(K) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by striking the item
relating to section 29.
(L) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 45I the following new item:

``Sec. 45J. Credit for producing fuel from a nonconventional source.''.

(b) Amendments Conforming to the Repeal of the Natural Gas
Policy Act of 1978.--
(1) In general.--Section 29(c)(2)(A) (before redesignation
under subsection (a)) is amended--
(A) by inserting ``(as in effect before the repeal of such
section)'' after ``1978'', and
(B) by striking subsection (e) and redesignating
subsections (f) and (g) as subsections (e) and (f),
respectively.
(2) Conforming amendments.--Section 29(g)(1)(before
redesignation under subsection (a) and paragraph (1) of this
subsection) is amended--
(A) in subparagraph (A) by striking ``subsection
(f)(1)(B)'' and inserting ``subsection (e)(1)(B)'', and
(B) in subparagraph (B) by striking ``subsection (f)'' and
inserting ``subsection (e)''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to credits
determined under the Internal Revenue Code of 1986 for
taxable years ending after December 31, 2005.
(2) Subsection (b).--The amendments made by subsection (b)
shall take effect on the date of the enactment of this Act.

SEC. 1306. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR
DECOMMISSIONING COSTS.

(a) Repeal of Limitation on Deposits Into Fund Based on
Cost of Service; Contributions After Funding Period.--
Subsection (b) of section 468A (relating to special rules for
nuclear decommissioning costs) is amended to read as follows:
``(b) Limitation on Amounts Paid Into Fund.--The amount
which a taxpayer may pay into the Fund for any taxable year
shall not exceed the ruling amount applicable to such taxable
year.''.
(b) Treatment of Certain Decommissioning Costs.--
(1) In general.--Section 468A is amended by redesignating
subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the
following new subsection:
``(f) Transfers Into Qualified Funds.--
``(1) In general.--Notwithstanding subsection (b), any
taxpayer maintaining a Fund to which this section applies
with respect to a nuclear power plant may transfer into such
Fund not more than an amount equal to the present value of
the portion of the total nuclear decommissioning costs with
respect to such nuclear power plant previously excluded for
such nuclear power plant under subsection (d)(2)(A) as in
effect immediately before the date of the enactment of the
Enhanced Energy Infrastructure and Technology Tax Act of
2005.
``(2) Deduction for amounts transferred.--
``(A) In general.--Except as provided in subparagraph (C),
the deduction allowed by subsection (a) for any transfer
permitted by this subsection shall be allowed ratably over
the remaining estimated useful life (within the meaning of
subsection (d)(2)(A)) of the nuclear power plant beginning
with the taxable year during which the transfer is made.
``(B) Denial of deduction for previously deducted
amounts.--No deduction shall be allowed for any transfer
under this subsection of an amount for which a deduction was
previously allowed to the taxpayer (or a predecessor) or a
corresponding amount was not included in gross income of the
taxpayer (or a predecessor). For purposes of the preceding
sentence, a ratable portion of each transfer shall be treated
as being from previously deducted or excluded amounts to the
extent thereof.
``(C) Transfers of qualified funds.--If--
``(i) any transfer permitted by this subsection is made to
any Fund to which this section applies, and
``(ii) such Fund is transferred thereafter,
any deduction under this subsection for taxable years ending
after the date that such Fund is transferred shall be allowed
to the

[[Page H2280]]

transferor for the taxable year which includes such date.
``(D) Special rules.--
``(i) Gain or loss not recognized on transfers to fund.--No
gain or loss shall be recognized on any transfer described in
paragraph (1).
``(ii) Transfers of appreciated property to fund.--If
appreciated property is transferred in a transfer described
in paragraph (1), the amount of the deduction shall not
exceed the adjusted basis of such property.
``(3) New ruling amount required.--Paragraph (1) shall not
apply to any transfer unless the taxpayer requests from the
Secretary a new schedule of ruling amounts in connection with
such transfer.
``(4) No basis in qualified funds.--Notwithstanding any
other provision of law, the taxpayer's basis in any Fund to
which this section applies shall not be increased by reason
of any transfer permitted by this subsection.''.
(2) New ruling amount to take into account total costs.--
Subparagraph (A) of section 468A(d)(2) (defining ruling
amount) is amended to read as follows:
``(A) fund the total nuclear decommissioning costs with
respect to such power plant over the estimated useful life of
such power plant, and''.
(c) Technical Amendments.--Section 468A(e)(2) (relating to
taxation of Fund) is amended--
(1) by striking ``rate set forth in subparagraph (B)'' in
subparagraph (A) and inserting ``rate of 20 percent'',
(2) by striking subparagraph (B), and
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.

SEC. 1307. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR
NATURAL GAS.

(a) In General.--Subsection (b) of section 148 (relating to
higher yielding investments) is amended by adding at the end
the following new paragraph:
``(4) Safe harbor for prepaid natural gas.--
``(A) In general.--The term `investment-type property' does
not include a prepayment under a qualified natural gas supply
contract.
``(B) Qualified natural gas supply contract.--For purposes
of this paragraph, the term `qualified natural gas supply
contract' means any contract to acquire natural gas for
resale by a utility owned by a governmental unit if the
amount of gas permitted to be acquired under the contract by
the utility during any year does not exceed the sum of--
``(i) the annual average amount during the testing period
of natural gas purchased (other than for resale) by customers
of such utility who are located within the service area of
such utility, and
``(ii) the amount of natural gas to be used to transport
the prepaid natural gas to the utility during such year.
``(C) Natural gas used to generate electricity.--Natural
gas used to generate electricity shall be taken into account
in determining the average under subparagraph (B)(i)--
``(i) only if the electricity is generated by a utility
owned by a governmental unit, and
``(ii) only to the extent that the electricity is sold
(other than for resale) to customers of such utility who are
located within the service area of such utility.
``(D) Adjustments for changes in customer base.--
``(i) New business customers.--If--

``(I) after the close of the testing period and before the
date of issuance of the issue, the utility owned by a
governmental unit enters into a contract to supply natural
gas (other than for resale) for a business use at a property
within the service area of such utility, and
``(II) the utility did not supply natural gas to such
property during the testing period or the ratable amount of
natural gas to be supplied under the contract is
significantly greater than the ratable amount of gas supplied
to such property during the testing period,

then a contract shall not fail to be treated as a qualified
natural gas supply contract by reason of supplying the
additional natural gas under the contract referred to in
subclause (I).
``(ii) Lost customers.--The average under subparagraph
(B)(i) shall not exceed the annual amount of natural gas
reasonably expected to be purchased (other than for resale)
by persons who are located within the service area of such
utility and who, as of the date of issuance of the issue, are
customers of such utility.
``(E) Ruling requests.--The Secretary may increase the
average under subparagraph (B)(i) for any period if the
utility owned by the governmental unit establishes to the
satisfaction of the Secretary that, based on objective
evidence of growth in natural gas consumption or population,
such average would otherwise be insufficient for such period.
``(F) Adjustment for natural gas otherwise on hand.--
``(i) In general.--The amount otherwise permitted to be
acquired under the contract for any period shall be reduced
by--

``(I) the applicable share of natural gas held by the
utility on the date of issuance of the issue, and
``(II) the natural gas (not taken into account under
subclause (I)) which the utility has a right to acquire
during such period (determined as of the date of issuance of
the issue).

``(ii) Applicable share.--For purposes of the clause (i),
the term `applicable share' means, with respect to any
period, the natural gas allocable to such period if the gas
were allocated ratably over the period to which the
prepayment relates.
``(G) Intentional acts.--Subparagraph (A) shall cease to
apply to any issue if the utility owned by the governmental
unit engages in any intentional act to render the volume of
natural gas acquired by such prepayment to be in excess of
the sum of--
``(i) the amount of natural gas needed (other than for
resale) by customers of such utility who are located within
the service area of such utility, and
``(ii) the amount of natural gas used to transport such
natural gas to the utility.
``(H) Testing period.--For purposes of this paragraph, the
term `testing period' means, with respect to an issue, the
most recent 5 calendar years ending before the date of
issuance of the issue.
``(I) Service area.--For purposes of this paragraph, the
service area of a utility owned by a governmental unit shall
be comprised of--
``(i) any area throughout which such utility provided at
all times during the testing period--

``(I) in the case of a natural gas utility, natural gas
transmission or distribution services, and
``(II) in the case of an electric utility, electricity
distribution services,

``(ii) any area within a county contiguous to the area
described in clause (i) in which retail customers of such
utility are located if such area is not also served by
another utility providing natural gas or electricity
services, as the case may be, and
``(iii) any area recognized as the service area of such
utility under State or Federal law.''.
(b) Private Loan Financing Test not to Apply to Prepayments
for Natural Gas.--Paragraph (2) of section 141(c) (providing
exceptions to the private loan financing test) is amended by
striking ``or'' at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ``,
or'', and by adding at the end the following new
subparagraph:
``(C) is a qualified natural gas supply contract (as
defined in section 148(b)(4)).''.
(c) Exception for Qualified Electric and Natural Gas Supply
Contracts.--Section 141(d) is amended by adding at the end
the following new paragraph:
``(7) Exception for qualified electric and natural gas
supply contracts.--The term `nongovernmental output property'
shall not include any contract for the prepayment of
electricity or natural gas which is not investment property
under section 148(b)(2).''.
(d) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 1308. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL
DEPLETION DEDUCTION.

(a) In General.--Paragraph (4) of section 613A(d) (relating
to limitations on application of subsection (c)) is amended
to read as follows:
``(4) Certain refiners excluded.--If the taxpayer or 1 or
more related persons engages in the refining of crude oil,
subsection (c) shall not apply to the taxpayer for a taxable
year if the average daily refinery runs of the taxpayer and
such persons for the taxable year exceed 75,000 barrels. For
purposes of this paragraph, the average daily refinery runs
for any taxable year shall be determined by dividing the
aggregate refinery runs for the taxable year by the number of
days in the taxable year.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.

Subtitle B--Miscellaneous Energy Tax Incentives

SEC. 1311. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

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

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

``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the sum
of--
``(1) 15 percent of the qualified solar water heating
property expenditures made by the taxpayer during such year,
``(2) 15 percent of the qualified photovoltaic property
expenditures made by the taxpayer during such year, and
``(3) 15 percent of the qualified fuel cell property
expenditures made by the taxpayer during such year.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed under subsection (a)
shall not exceed--
``(i) $2,000 for solar water heating property described in
subsection (c)(1),
``(ii) $2,000 for photovoltaic property described in
subsection (c)(2), and

[[Page H2281]]

``(iii) $500 for each 0.5 kilowatt of capacity of property
described in subsection (c)(3).
``(B) Prior expenditures by taxpayer on same residence
taken into account.--In determining the amount of the credit
allowed to a taxpayer with respect to any dwelling unit under
this section, the dollar amounts under clauses (i) and (ii)
of subparagraph (A) with respect to each type of property
described in such clauses shall be reduced by the credit
allowed to the taxpayer under this section with respect to
such type of property for all preceding taxable years with
respect to such dwelling unit.
``(2) Property standards.--No credit shall be allowed under
this section for an item of property unless--
``(A) the original use of such property commences with the
taxpayer,
``(B) such property can be reasonably expected to remain in
use for at least 5 years,
``(C) such property is installed on or in connection with a
dwelling unit located in the United States and used as a
residence by the taxpayer,
``(D) in the case of solar water heating property, such
property is certified for performance by the non-profit Solar
Rating and Certification Corporation or a comparable entity
endorsed by the government of the State in which such
property is installed, and
``(E) in the case of fuel cell property, such property
meets the performance and quality standards (if any) which
have been prescribed by the Secretary by regulations (after
consultation with the Secretary of Energy).
``(c) Definitions.--For purposes of this section--
``(1) Qualified solar water heating property expenditure.--
The term `qualified solar water heating property expenditure'
means an expenditure for property which uses solar energy to
heat water for use in a dwelling unit.
``(2) Qualified photovoltaic property expenditure.--The
term `qualified photovoltaic property expenditure' means an
expenditure for property which uses solar energy to generate
electricity for use in a dwelling unit and which is not
described in paragraph (1).
``(3) Qualified fuel cell property expenditure.--The term
`qualified fuel cell property expenditure' means an
expenditure for any qualified fuel cell property (as defined
in section 48(b)(1)).
``(d) Special Rules.--For purposes of this section--
``(1) Solar panels.--No expenditure relating to a solar
panel or other property installed as a roof (or portion
thereof) shall fail to be treated as property described in
paragraph (1) or (2) of subsection (c) solely because it
constitutes a structural component of the structure on which
it is installed.
``(2) Swimming pools, etc., used as storage medium.--
Expenditures which are properly allocable to a swimming pool,
hot tub, or any other energy storage medium which has a
function other than the function of such storage shall not be
taken into account for purposes of this section.
``(3) Dollar amounts in case of joint occupancy.--In the
case of any dwelling unit which is jointly occupied and used
during any calendar year as a residence by 2 or more
individuals, the following rules shall apply:
``(A) The amount of the credit allowable under subsection
(a) by reason of expenditures made during such calendar year
by any of such individuals with respect to such dwelling unit
shall be determined by treating all of such individuals as 1
taxpayer whose taxable year is such calendar year.
``(B) There shall be allowable, with respect to such
expenditures to each of such individuals, a credit under
subsection (a) for the taxable year in which such calendar
year ends in an amount which bears the same ratio to the
amount determined under subparagraph (A) as the amount of
such expenditures made by such individual during such
calendar year bears to the aggregate of such expenditures
made by all of such individuals during such calendar year.
``(C) Subparagraphs (A) and (B) shall be applied separately
with respect to expenditures described in paragraphs (1),
(2), and (3) of subsection (c).
``(4) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made the individual's
tenant-stockholder's proportionate share (as defined in
section 216(b)(3)) of any expenditures of such corporation.
``(5) Condominiums.--
``(A) In general.--In the case of an individual who is a
member of a condominium management association with respect
to a condominium which the individual owns, such individual
shall be treated as having made the individual's
proportionate share of any expenditures of such association.
``(B) Condominium management association.--For purposes of
this paragraph, the term `condominium management association'
means an organization which meets the requirements of
paragraph (1) of section 528(c) (other than subparagraph (E)
thereof) with respect to a condominium project substantially
all of the units of which are used as residences.
``(6) Allocation in certain cases.--If less than 80 percent
of the use of an item is for nonbusiness purposes, only that
portion of the expenditures for such item which is properly
allocable to use for nonbusiness purposes shall be taken into
account.
``(7) When expenditure made; amount of expenditure.--
``(A) In general.--Except as provided in subparagraph (B),
an expenditure with respect to an item shall be treated as
made when the original installation of the item is completed.
``(B) Expenditures part of building construction.--In the
case of an expenditure in connection with the construction or
reconstruction of a structure, such expenditure shall be
treated as made when the original use of the constructed or
reconstructed structure by the taxpayer begins.
``(C) Amount.--The amount of any expenditure shall be the
cost thereof.
``(8) Property financed by subsidized energy financing.--
For purposes of determining the amount of expenditures made
by any individual with respect to any dwelling unit, there
shall not be taken into account expenditures which are made
from subsidized energy financing (as defined in section
48(a)(4)(C)).
``(e) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(f) Termination.--The credit allowed under this section
shall not apply to taxable years beginning after December 31,
2007.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (30), by striking the period at the end of
paragraph (31) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(32) to the extent provided in section 25C(e), in the
case of amounts with respect to which a credit has been
allowed under section 25C.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 25B the following new item:

``Sec. 25C. Residential energy efficient property.''.

(c) Effective Date.--The amendments made by this section
shall apply to expenditures made after the date of the
enactment of this Act.

SEC. 1312. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL
CELLS.

(a) In General.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(i), by adding ``or'' at the end of clause (ii), and by
inserting after clause (ii) the following new clause:
``(iii) qualified fuel cell property,''.
(b) Energy Percentage.--Subparagraph (A) of section
48(a)(2) (relating to energy percentage) is amended to read
as follows:
``(A) In general.--The energy percentage is--
``(i) in the case of qualified fuel cell property, 15
percent, and
``(ii) in the case of any other energy property, 10
percent.''.
(c) Qualified Fuel Cell Property.--Section 48 (relating to
energy credit) is amended--
(1) by redesignating subsection (b) as paragraph (5) of
subsection (a),
(2) by striking ``subsection (a)'' in paragraph (5) of
subsection (a), as redesignated by paragraph (1), and
inserting ``this subsection'', and
(3) by adding at the end the following new subsection:
``(b) Qualified Fuel Cell Property.--For purposes of
subsection (a)(3)(A)(iii)--
``(1) In general.--The term `qualified fuel cell property'
means a fuel cell power plant which--
``(A) generates at least 0.5 kilowatt of electricity using
an electrochemical process, and
``(B) has an electricity-only generation efficiency greater
than 30 percent.
``(2) Limitation.--The energy credit with respect to any
qualified fuel cell property shall not exceed an amount equal
to $500 for each 0.5 kilowatt of capacity of such property.
``(3) Fuel cell power plant.--The term `fuel cell power
plant' means an integrated system, comprised of a fuel cell
stack assembly and associated balance of plant components,
which converts a fuel into electricity using electrochemical
means.
``(4) Termination.--The term `qualified fuel cell property'
shall not include any property placed in service after
December 31, 2007.''.
(d) Conforming Amendment.--Section 48(a)(1) is amended by
inserting ``except as provided in subsection (b)(2),'' before
``the energy'' the first place it appears.
(e) Effective Date.--The amendments made by this section
shall apply to property placed in service after April 11,
2005, under rules similar to the rules of section 48(m) of
the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue
Reconciliation Act of 1990).

SEC. 1313. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES
OF DIESEL FUEL.

(a) In General.--Paragraph (2) of section 4081(a) is
amended by adding at the end the following:
``(D) Diesel-water fuel emulsion.--In the case of diesel-
water fuel emulsion at least

[[Page H2282]]

16.9 percent of which is water and with respect to which the
emulsion additive is registered by a United States
manufacturer with the Environmental Protection Agency
pursuant to section 211 of the Clean Air Act (as in effect on
March 31, 2003), subparagraph (A)(iii) shall be applied by
substituting `19.7 cents' for `24.3 cents'.''.
(b) Special Rules for Diesel-Water Fuel Emulsions.--
(1) Refunds for tax-paid purchases.--Section 6427 is
amended by redesignating subsections (m) through (p) as
subsections (n) through (q), respectively, and by inserting
after subsection (l) the following new subsection:
``(m) Diesel Fuel Used to Produce Emulsion.--
``(1) In general.--Except as provided in subsection (k), if
any diesel fuel on which tax was imposed by section 4081 at
the regular tax rate is used by any person in producing an
emulsion described in section 4081(a)(2)(D) which is sold or
used in such person's trade or business, the Secretary shall
pay (without interest) to such person an amount equal to the
excess of the regular tax rate over the incentive tax rate
with respect to such fuel.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular tax rate' means
the aggregate rate of tax imposed by section 4081 determined
without regard to section 4081(a)(2)(D).
``(B) Incentive tax rate.--The term `incentive tax rate'
means the aggregate rate of tax imposed by section 4081
determined with regard to section 4081(a)(2)(D).''.
(2) Later separation of fuel.--Section 4081 (relating to
imposition of tax) is amended by inserting after subsection
(b) the following new subsection:
``(c) Later Separation of Fuel From Diesel-Water Fuel
Emulsion.--If any person separates the taxable fuel from a
diesel-water fuel emulsion on which tax was imposed under
subsection (a) at a rate determined under subsection
(a)(2)(D) (or with respect to which a credit or payment was
allowed or made by reason of section 6427), such person shall
be treated as the refiner of such taxable fuel. The amount of
tax imposed on any removal of such fuel by such person shall
be reduced by the amount of tax imposed (and not credited or
refunded) on any prior removal or entry of such fuel.''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2006.

SEC. 1314. AMORTIZATION OF DELAY RENTAL PAYMENTS.

(a) In General.--Section 167 (relating to depreciation) is
amended by redesignating subsection (h) as subsection (i) and
by inserting after subsection (g) the following new
subsection:
``(h) Amortization of Delay Rental Payments for Domestic
Oil and Gas Wells.--
``(1) In general.--Any delay rental payment paid or
incurred in connection with the development of oil or gas
wells within the United States (as defined in section 638)
shall be allowed as a deduction ratably over the 24-month
period beginning on the date that such payment was paid or
incurred.
``(2) Half-year convention.--For purposes of paragraph (1),
any payment paid or incurred during the taxable year shall be
treated as paid or incurred on the mid-point of such taxable
year.
``(3) Exclusive method.--Except as provided in this
subsection, no depreciation or amortization deduction shall
be allowed with respect to such payments.
``(4) Treatment upon abandonment.--If any property to which
a delay rental payment relates is retired or abandoned during
the 24-month period described in paragraph (1), no deduction
shall be allowed on account of such retirement or abandonment
and the amortization deduction under this subsection shall
continue with respect to such payment.
``(5) Delay rental payments.--For purposes of this
subsection, the term `delay rental payment' means an amount
paid for the privilege of deferring development of an oil or
gas well under an oil or gas lease.''.
(b) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after the date of the enactment of this Act.

SEC. 1315. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.

(a) In General.--Section 167 (relating to depreciation), as
amended by section 1314 of this title, is amended by
redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new subsection:
``(i) Amortization of Geological and Geophysical
Expenditures.--
``(1) In general.--Any geological and geophysical expenses
paid or incurred in connection with the exploration for, or
development of, oil or gas within the United States (as
defined in section 638) shall be allowed as a deduction
ratably over the 24-month period beginning on the date that
such expense was paid or incurred.
``(2) Special rules.--For purposes of this subsection,
rules similar to the rules of paragraphs (2), (3), and (4) of
subsection (h) shall apply.''.
(b) Conforming Amendment.--Section 263A(c)(3) is amended by
inserting ``167(h), 167(i),'' after ``under section''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after the date of the enactment of this Act.

SEC. 1316. ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE
CREDIT.

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

``SEC. 30B. ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLE
CREDIT.

``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each
qualified advanced lean burn technology motor vehicle placed
in service by the taxpayer during the taxable year.
``(b) Credit Amount.--For purposes of subsection (a)--
``(1) Fuel efficiency.--The credit amount with respect to
any vehicle shall be--
``(A) $500, if the city fuel economy of such vehicle is at
least 125 percent but less than 150 percent of the 2000 model
year city fuel economy for a vehicle in the same inertia
weight class,
``(B) $1,000, if the city fuel economy of such vehicle is
at least 150 percent but less than 175 percent of the 2000
model year city fuel economy for a vehicle in the same
inertia weight class,
``(C) $1,500, if the city fuel economy of such vehicle is
at least 175 percent but less than 200 percent of the 2000
model year city fuel economy for a vehicle in the same
inertia weight class,
``(D) $2,000, if the city fuel economy of such vehicle is
at least 200 percent but less than 225 percent of the 2000
model year city fuel economy for a vehicle in the same
inertia weight class,
``(E) $2,500, if the city fuel economy of such vehicle is
at least 225 percent but less than 250 percent of the 2000
model year city fuel economy for a vehicle in the same
inertia weight class, and
``(F) $3,000, if the city fuel economy of such vehicle is
at least 250 percent of the 2000 model year city fuel economy
for a vehicle in the same inertia weight class.
``(2) Conservation.--The credit amount determined under
paragraph (1) with respect to any vehicle shall be increased
by--
``(A) $250, if the lifetime fuel savings of such vehicle is
at least 1,500 gallons of motor fuel but less than 2,500
gallons of motor fuel, and
``(B) $500, if the lifetime fuel savings of such vehicle is
at least 2,500 gallons of motor fuel.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under subpart A and
sections 27 and 30A for the taxable year.
``(d) Definitions.--For purposes of this section--
``(1) Qualified advanced lean burn technology motor
vehicle.--The term `qualified advanced lean burn technology
motor vehicle' means a motor vehicle--
``(A) the original use of which commences with the
taxpayer,
``(B) powered by an internal combustion engine that--
``(i) is designed to operate primarily using more air than
is necessary for complete combustion of the fuel, and
``(ii) incorporates direct injection,
``(C) that only uses diesel fuel (as defined in section
4083(a)(3)),
``(D) the city fuel economy of which is at least 125
percent of the 2000 model year city fuel economy for a
vehicle in the same inertia weight class, and
``(E) that has received a certificate that such vehicle
meets or exceeds the Bin 8 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.
``(2) Lifetime fuel savings.--The term `lifetime fuel
savings' means, with respect to a qualified advanced lean
burn technology motor vehicle, an amount equal to the excess
(if any) of--
``(A) 120,000 divided by the 2000 model year city fuel
economy for the vehicle inertia weight class, over
``(B) 120,000 divided by the city fuel economy for such
vehicle.
``(3) 2000 model year city fuel economy.--The 2000 model
year city fuel economy with respect to a vehicle shall be
determined in accordance with the following tables:
``(A) In the case of a passenger automobile:
The 2000 model year city fuel economy is:
1,500 or 1,750 lbs.........................................43.7 mpg.

2,000 lbs..................................................38.3 mpg.

2,250 lbs..................................................34.1 mpg.

2,500 lbs..................................................30.7 mpg.

2,750 lbs..................................................27.9 mpg.

3,000 lbs..................................................25.6 mpg.

3,500 lbs..................................................22.0 mpg.

4,000 lbs..................................................19.3 mpg.

4,500 lbs..................................................17.2 mpg.

5,000 lbs..................................................15.5 mpg.

[[Page H2283]]

5,500 lbs..................................................14.1 mpg.

6,000 lbs..................................................12.9 mpg.

6,500 lbs..................................................11.9 mpg.

7,000 or 8,500 lbs........................................11.1 mpg..

``(B) In the case of a light truck:
The 2000 model year city fuel economy is:
1,500 or 1,750 lbs.........................................37.6 mpg.

2,000 lbs..................................................33.7 mpg.

2,250 lbs..................................................30.6 mpg.

2,500 lbs..................................................28.0 mpg.

2,750 lbs..................................................25.9 mpg.

3,000 lbs..................................................24.1 mpg.

3,500 lbs..................................................21.3 mpg.

4,000 lbs..................................................19.0 mpg.

4,500 lbs..................................................17.3 mpg.

5,000 lbs..................................................15.8 mpg.

5,500 lbs..................................................14.6 mpg.

6,000 lbs..................................................13.6 mpg.

6,500 lbs..................................................12.8 mpg.

7,000 or 8,500 lbs........................................12.0 mpg..

``(4) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(5) City fuel economy.--City fuel economy with respect to
any vehicle shall be measured in accordance with testing and
calculation procedures established by the Administrator of
the Environmental Protection Agency by regulations in effect
on April 11, 2005.
``(6) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' shall have the meanings
given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air
Act (42 U.S.C. 7521 et seq.).
``(e) Carryforward Allowed.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (c) for such taxable year
(referred to as the `unused credit year' in this paragraph),
such excess shall be allowed as a credit carryforward for
each of the 20 taxable years following the unused credit
year.
``(2) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryforward under
paragraph (1).
``(f) Special Rules.--For purposes of this section--
``(1) Reduction in basis.--The basis of any property for
which a credit is allowable under subsection (a) shall be
reduced by the amount of such credit (determined without
regard to subsection (c)).
``(2) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credit
allowable under subsection (a)), with respect to any vehicle
shall be reduced by the amount of credit allowed under
subsection (a) (determined without regard to subsection (c))
for such vehicle for the taxable year.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle whose use is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person
who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any
credit allowable under subsection (a) with respect to such
vehicle (determined without regard to subsection (c)).
``(4) Property used outside united states, etc., not
qualified.--No credit shall be allowable under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects not to have this section apply to such vehicle.
``(6) Interaction with air quality and motor vehicle safety
standards.--Unless otherwise provided in this section, a
motor vehicle shall not be considered eligible for a credit
under this section unless such vehicle is in compliance
with--
``(A) the applicable provisions of the Clean Air Act for
the applicable make and model year of the vehicle (or
applicable air quality provisions of State law in the case of
a State which has adopted such provision under a waiver under
section 209(b) of the Clean Air Act), and
``(B) the motor vehicle safety provisions of sections 30101
through 30169 of title 49, United States Code.
``(g) Regulations.--
``(1) In general.--The Secretary shall promulgate such
regulations as necessary to carry out this section, including
regulations to prevent the avoidance of the purposes of this
section through disposal of any motor vehicle or leasing of
any motor vehicle for a lease period of less than the
economic life of such vehicle.
``(2) Determination of motor vehicle eligibility.--The
Secretary, in coordination with the Secretary of
Transportation and the Administrator of the Environmental
Protection Agency, shall prescribe such regulations as
necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.
``(h) Termination.--This section shall not apply to any
property placed in service after December 31, 2007.''.
(b) Conforming Amendments.--
(1) Section 1016(a), as amended by section 1311 of this
title, is amended by striking ``and'' at the end of paragraph
(31), by striking the period at the end of paragraph (32) and
inserting ``, and'', and by adding at the end the following:
``(33) to the extent provided in section 30B(f)(1).''.
(2) Section 6501(m) is amended by inserting ``30B(f)(6),''
after ``30(d)(4),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30A the following:

``Sec. 30B. Advanced lean burn technology motor vehicle credit.''.

(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.

SEC. 1317. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO
EXISTING HOMES.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits), as
amended by section 1311, is amended by inserting after
section 25C the following new section:

``SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.

``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to 20
percent of the amount paid or incurred by the taxpayer for
qualified energy efficiency improvements installed during
such taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by this section
with respect to a dwelling unit shall not exceed $2,000.
``(2) Prior credit amounts for taxpayer on same dwelling
taken into account.--If a credit was allowed to the taxpayer
under subsection (a) with respect to a dwelling unit in 1 or
more prior taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that dwelling
unit shall be reduced by the sum of the credits allowed under
subsection (a) to the taxpayer with respect to the dwelling
unit for all prior taxable years.
``(c) Qualified Energy Efficiency Improvements.--For
purposes of this section, the term `qualified energy
efficiency improvements' means any energy efficient building
envelope component which meets the prescriptive criteria for
such component established by the 2000 International Energy
Conservation Code, as such Code (including supplements) is in
effect on the date of the enactment of the Enhanced Energy
Infrastructure and Technology Tax Act of 2005 (or, in the
case of a metal roof with appropriate pigmented coatings
which meet the Energy Star program requirements), if--
``(1) such component is installed in or on a dwelling unit
located in the United States and owned and used by the
taxpayer as the taxpayer's principal residence (within the
meaning of section 121),
``(2) the original use of such component commences with the
taxpayer, and
``(3) such component reasonably can be expected to remain
in use for at least 5 years.
If the aggregate cost of such components with respect to any
dwelling unit exceeds $1,000, such components shall be
treated as qualified energy efficiency improvements only if
such components are also certified in accordance with
subsection (d) as meeting such prescriptive criteria.
``(d) Certification.--The certification described in
subsection (c) shall be--
``(1) determined on the basis of the technical
specifications or applicable ratings (including product
labeling requirements) for the measurement of energy
efficiency (based upon energy use or building envelope
component performance) for the energy efficient building
envelope component,
``(2) provided by a local building regulatory authority, a
utility, a manufactured home production inspection primary
inspection agency (IPIA), or an accredited home energy rating
system provider who is accredited by or otherwise authorized
to use approved energy performance measurement methods by the
Residential Energy Services Network (RESNET), and
``(3) made in writing in a manner which specifies in
readily verifiable fashion the energy efficient building
envelope components installed and their respective energy
efficiency levels.
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Building envelope component.--The term `building
envelope component' means--
``(A) any insulation material or system which is
specifically and primarily designed to reduce the heat loss
or gain of a dwelling unit when installed in or on such
dwelling unit,
``(B) exterior windows (including skylights),

[[Page H2284]]

``(C) exterior doors, and
``(D) any metal roof installed on a dwelling unit, but only
if such roof has appropriate pigmented coatings which are
specifically and primarily designed to reduce the heat gain
of such dwelling unit.
``(2) Manufactured homes included.--The term `dwelling
unit' includes a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (section
3280 of title 24, Code of Federal Regulations).
``(3) Application of rules.--Rules similar to the rules
under paragraphs (3), (4), and (5) of section 25C(d) shall
apply.
``(f) Basis Adjustment.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(g) Application of Section.--This section shall apply to
qualified energy efficiency improvements installed after the
date of the enactment of the Enhanced Energy Infrastructure
and Technology Tax Act of 2005, and before January 1,
2008.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016, as amended by section
1316 of this title, is amended by striking ``and'' at the end
of paragraph (32), by striking the period at the end of
paragraph (33) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(34) to the extent provided in section 25D(f), in the
case of amounts with respect to which a credit has been
allowed under section 25D.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1, as amended by section 1311, is
amended by inserting after the item relating to section 25C
the following new item:

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

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

Subtitle C--Alternative Minimum Tax Relief

SEC. 1321. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST
REGULAR AND MINIMUM TAXES.

(a) In General.--
(1) Section 25c.--Section 25C(b), as added by section 1311
of this title, is amended by adding at the end the following
new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.''.
(2) Section 25d.--Section 25D(b), as added by section 1317
of this title, is amended by adding at the end the following
new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.''.
(b) Conforming Amendments.--
(1) Section 23(b)(4)(B) is amended by inserting ``and
sections 25C and 25D'' after ``this section''.
(2) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, 25C, and 25D''.
(3) Section 25(e)(1)(C) is amended by inserting ``25C, and
25D'' after ``25B,''.
(4) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23, 25C, and 25D''.
(5) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(6) Section 904(i) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(7) Section 1400C(d) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.

SEC. 1322. CERTAIN BUSINESS ENERGY CREDITS ALLOWED AGAINST
REGULAR AND MINIMUM TAXES.

(a) In General.--Subparagraph (B) of section 38(c)(4)
(relating to specified credits) is amended by redesignating
clause (ii) as clause (iv) and by striking clause (i) and
inserting the following new clauses:
``(i) the credits determined under sections 40, 45H, and
45I,
``(ii) so much of the credit determined under section 46 as
is attributable to section 48(a)(3)(A)(iii),
``(iii) for taxable years beginning after December 31,
2005, and before January 1, 2008, the credit determined under
section 43, and''.
(b) Effective Dates.--
(1) In general.--Except as provided by paragraph (2), the
amendment made by subsection (a) shall apply to credits
determined under the Internal Revenue Code of 1986 for
taxable years beginning after December 31, 2005.
(2) Fuel cells.--Clause (ii) of section 38(c)(4)(B) of the
Internal Revenue Code of 1986, as amended by subsection (a)
of this section, shall apply to credits determined under the
Internal Revenue Code of 1986 for taxable years ending after
April 11, 2005.

TITLE XIV--MISCELLANEOUS

Subtitle C--Other Provisions

SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY ORDER.

Department of Energy Order No. 202-03-2, issued by the
Secretary of Energy on August 28, 2003, shall remain in
effect unless rescinded by Federal statute.

SEC. 1442. REVIEW OF AGENCY DETERMINATIONS.

Section 7 of the Natural Gas Act (15 U.S.C. 717f) is
amended by adding at the end the following:
``(i)(1) The United States Court of Appeals for the
District of Columbia Circuit shall have original and
exclusive jurisdiction over any civil action--
``(A) for review of any order or action of any Federal or
State administrative agency or officer to issue, condition,
or deny any permit, license, concurrence, or approval issued
under authority of any Federal law, other than the Coastal
Zone Management Act of 1972 (16 U.S.C. 1451 et seq.),
required for the construction of a natural gas pipeline for
which a certificate of public convenience and necessity is
issued by the Commission under this section;
``(B) alleging unreasonable delay by any Federal or State
administrative agency or officer in entering an order or
taking other action described in subparagraph (A); or
``(C) challenging any decision made or action taken under
this subsection.
``(2)(A) If the Court finds that the order, action, or
failure to act is not consistent with the public convenience
and necessity (as determined by the Commission under this
section), or would prevent the construction and operation of
natural gas facilities authorized by the certificate of
public convenience and necessity, the permit, license,
concurrence, or approval that is the subject of the order,
action, or failure to act shall be deemed to have been issued
subject to any conditions set forth in the reviewed order or
action that the Court finds to be consistent with the public
convenience and necessity.
``(B) For purposes of paragraph (1)(B), the failure of an
agency or officer to issue any such permit, license,
concurrence, or approval within the later of 1 year after the
date of filing of an application for the permit, license,
concurrence, or approval or 60 days after the date of
issuance of the certificate of public convenience and
necessity under this section, shall be considered to be
unreasonable delay unless the Court, for good cause shown,
determines otherwise.
``(C) The Court shall set any action brought under
paragraph (1) for expedited consideration.''.

SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE NONATTAINMENT
AREAS.

Section 181 of the Clean Air Act (42 U.S.C.7511) is amended
by adding the following new subsection at the end thereof:
``(d) Extended Attainment Date for Certain Downwind
Areas.--
``(1) Definitions.--(A) The term `upwind area' means an
area that--
``(i) significantly contributes to nonattainment in another
area, hereinafter referred to as a `downwind area'; and
``(ii) is either--
``(I) a nonattainment area with a later attainment date
than the downwind area, or
``(II) an area in another State that the Administrator has
found to be significantly contributing to nonattainment in
the downwind area in violation of section 110(a)(2)(D) and
for which the Administrator has established requirements
through notice and comment rulemaking to eliminate the
emissions causing such significant contribution.
``(B) The term `current classification' means the
classification of a downwind area under this section at the
time of the determination under paragraph (2).
``(2) Extension.--If the Administrator--
``(A) determines that any area is a downwind area with
respect to a particular national ambient air quality standard
for ozone; and
``(B) approves a plan revision for such area as provided in
paragraph (3) prior to a reclassification under subsection
(b)(2)(A),
the Administrator, in lieu of such reclassification, shall
extend the attainment date for such downwind area for such
standard in accordance with paragraph (5).
``(3) Required approval.--In order to extend the attainment
date for a downwind area under this subsection, the
Administrator must approve a revision of the applicable
implementation plan for the downwind area for such standard
that--
``(A) complies with all requirements of this Act applicable
under the current classification of the downwind area,
including any requirements applicable to the area under
section 172(c) for such standard; and
``(B) includes any additional measures needed to
demonstrate attainment by the extended attainment date
provided under this subsection.
``(4) Prior reclassification determination.--If, no more
than 18 months prior to the date of enactment of this
subsection, the Administrator made a reclassification
determination under subsection (b)(2)(A) for any downwind
area, and the Administrator approves the plan revision
referred to in paragraph (3) for such area within 12 months

[[Page H2285]]

after the date of enactment of this subsection, the
reclassification shall be withdrawn and the attainment date
extended in accordance with paragraph (5) upon such approval.
The Administrator shall also withdraw a reclassification
determination under subsection (b)(2)(A) made after the date
of enactment of this subsection and extend the attainment
date in accordance with paragraph (5) if the Administrator
approves the plan revision referred to in paragraph (3)
within 12 months of the date the reclassification
determination under subsection (b)(2)(A) is issued. In such
instances the `current classification' used for evaluating
the revision of the applicable implementation plan under
paragraph (3) shall be the classification of the downwind
area under this section immediately prior to such
reclassification.
``(5) Extended date.--The attainment date extended under
this subsection shall provide for attainment of such national
ambient air quality standard for ozone in the downwind area
as expeditiously as practicable but no later than the date on
which the last reductions in pollution transport necessary
for attainment in the downwind area are required to be
achieved by the upwind area or areas.''.

SEC. 1444. ENERGY PRODUCTION INCENTIVES.

(a) In General.--A State may provide to any entity--
(1) a credit against any tax or fee owed to the State under
a State law, or
(2) any other tax incentive,
determined by the State to be appropriate, in the amount
calculated under and in accordance with a formula determined
by the State, for production described in subsection (b) in
the State by the entity that receives such credit or such
incentive.
(b) Eligible Entities.--Subsection (a) shall apply with
respect to the production in the State of--
(1) electricity from coal mined in the State and used in a
facility, if such production meets all applicable Federal and
State laws and if such facility uses scrubbers or other forms
of clean coal technology,
(2) electricity from a renewable source such as wind,
solar, or biomass, or
(3) ethanol.
(c) Effect on Interstate Commerce.--Any action taken by a
State in accordance with this section with respect to a tax
or fee payable, or incentive applicable, for any period
beginning after the date of the enactment of this Act shall--
(1) be considered to be a reasonable regulation of
commerce; and
(2) not be considered to impose an undue burden on
interstate commerce or to otherwise impair, restrain, or
discriminate, against interstate commerce.

SEC. 1446. REGULATION OF CERTAIN OIL USED IN TRANSFORMERS.

Notwithstanding any other provision of law, or rule
promulgated by the Environmental Protection Agency, vegetable
oil made from soybeans and used in electric transformers as
thermal insulation shall not be regulated as an oil as
defined under section 2(a)(1)(A) of the Edible Oil Regulatory
Reform Act (33 U.S.C. 2720(a)(1)(A)).

SEC. 1447. RISK ASSESSMENTS.

Subtitle B of title XXX of the Energy Policy Act of 1992 is
amended by adding at the end the following new section:

``SEC. 3022. RISK ASSESSMENT.

``Federal agencies conducting assessments of risks to human
health and the environment from energy technology,
production, transport, transmission, distribution, storage,
use, or conservation activities shall use sound and objective
scientific practices in assessing such risks, shall consider
the best available science (including peer reviewed studies),
and shall include a description of the weight of the
scientific evidence concerning such risks.''.

SEC. 1448. OXYGEN-FUEL.

(a) Program.--The Secretary of Energy shall establish a
program on oxygen-fuel systems. If feasible, the program
shall include renovation of at least one existing large unit
and one existing small unit, and construction of one new
large unit and one new small unit. Cost sharing shall not be
required.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section--
(1) $100,000,000 for fiscal year 2006;
(2) $100,000,000 for fiscal year 2007; and
(3) $100,000,000 for fiscal year 2008.
(c) Definitions.--For purposes of this section--
(1) the term ``large unit'' means a unit with a generating
capacity of 100 megawatts or more;
(2) the term ``oxygen-fuel systems'' means systems that
utilize fuel efficiency benefits of oil, gas, coal, and
biomass combustion using substantially pure oxygen, with high
flame temperatures and the exclusion of air from the boiler,
in industrial or electric utility steam generating units; and
(3) the term ``small unit'' means a unit with a generating
capacity in the 10-50 megawatt range.

SEC. 1449. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH
ASSESSMENT.

(a) Establishment.--The Secretary of Energy shall conduct a
study of direct and significant health impacts to persons
resulting from living in proximity to petrochemical and oil
refinery facilities. The Secretary shall consult with the
Director of the National Cancer Institute and other Federal
Government bodies with expertise in the field it deems
appropriate in the design of such study. The study shall be
conducted according to sound and objective scientific
practices and present the weight of the scientific evidence.
The Secretary shall obtain scientific peer review of the
draft study.
(b) Report to Congress.--The Secretary shall transmit the
results of the study to Congress within 6 months of the
enactment of this section.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for activities under this
section such sums as are necessary for the completion of the
study.

SEC. 1450. UNITED STATES-ISRAEL COOPERATION.

(a) Findings.--The Congress finds that--
(1) on February 1, 1996, United States Secretary of Energy
Hazel R. O'Leary and Israeli Minister of Energy and
Infrastructure Gonen Segev signed the Agreement between the
Department of Energy of the United States of America and the
Ministry of Energy and Infrastructure of Israel Concerning
Energy Cooperation, to establish a framework for
collaboration between the United States and Israel in energy
research and development activities;
(2) the Agreement entered into force in February 2000;
(3) in February 2005, the Agreement was automatically
renewed for one additional 5-year period pursuant to Article
X of the Agreement; and
(4) under the Agreement, the United States and Israel may
cooperate in energy research and development in a variety of
alternative and advanced energy sectors.
(b) Report to Congress.--(1) The Secretary of Energy shall
report to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Energy and Natural
Resources of the Senate on--
(A) how the United States and Israel have cooperated on
energy research and development activities under the
Agreement;
(B) projects initiated pursuant to the Agreement; and
(C) plans for future cooperation and joint projects under
the Agreement.
(2) The report shall be submitted no later than three
months after the date of enactment of this Act.
(c) Sense of Congress.--It is the sense of the Congress
that energy cooperation between the Governments of the United
States and Israel is mutually beneficial in the development
of energy technology.

SEC. 1451. CARBON-BASED FUEL CELL DEVELOPMENT.

(a) Grant Authority.--The Secretary of Energy is authorized
to make a single grant to a qualified institution to design
and fabricate a 5-kilowatt prototype coal-based fuel cell
with the following performance objectives:
(1) A current density of 600 milliamps per square
centimeter at a cell voltage of 0.8 volts.
(2) An operating temperature range not to exceed 900
degrees celsius.
(b) Qualified Institution.--For the purposes of subsection
(a), a qualified institution is a research-intensive
institution of higher education with demonstrated expertise
in the development of carbon-based fuel cells allowing the
direct use of high sulfur content coal as fuel, and which has
produced a laboratory-scale carbon-based fuel cell with a
proven current density of 100 milliamps per square centimeter
at a voltage of 0.6 volts.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this section $850,000 for fiscal year 2006.

TITLE XV--ETHANOL AND MOTOR FUELS

Subtitle A--General Provisions

SEC. 1501. 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) Ethanol.--(i) 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 residues; and
``(VI) fibers.
``(ii) The term `waste derived ethanol' means ethanol
derived from--
``(I) animal wastes, including poultry fats and poultry
wastes, and other waste materials; or
``(II) 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, waste

[[Page H2286]]

derived ethanol, and biodiesel (as defined in section 312(f)
of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)) and any
blending components derived from renewable fuel (provided
that only the renewable fuel portion of any such blending
component shall be considered part of the applicable volume
under the renewable fuel program established by this
subsection).
``(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 1 year after the
enactment of this subsection, the Administrator shall
promulgate regulations ensuring that motor vehicle fuel sold
or dispensed to consumers in the contiguous 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, and importers,
as appropriate, to ensure that the requirements of this
section are met, but shall not restrict where renewable fuel
can be used, or impose any per-gallon obligation for the use
of renewable fuel. If the Administrator does not promulgate
such regulations, the applicable percentage referred to in
paragraph (4), on a volume percentage of gasoline basis,
shall be 2.2 in 2005.
``(B) Applicable volume.--
``(i) Calendar years 2005 through 2012.--For the purpose of
subparagraph (A), the applicable volume for any of calendar
years 2005 through 2012 shall be determined in accordance
with the following table:
Applicable volume of renewable fuel
``Calendar year (in billions of gallons)
2005..............................................................3.1
2006..............................................................3.3
2007..............................................................3.5
2008..............................................................3.8
2009..............................................................4.1
2010..............................................................4.4
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) Non-contiguous state opt-in.--Upon the petition of a
non-contiguous State, the Administrator may allow the
renewable fuel program established by subtitle A of title XV
of the Energy Policy Act of 2005 to apply in such non-
contiguous State at the same time or any time after the
Administrator promulgates regulations under paragraph (2).
The Administrator may promulgate or revise regulations under
paragraph (2), establish applicable percentages under
paragraph (4), provide for the generation of credits under
paragraph (6), and take such other actions as may be
necessary to allow for the application of the renewable fuels
program in a non-contiguous State.
``(4) Applicable percentages.--
``(A) Provision of estimate of volumes of gasoline sales.--
Not later than October 31 of each of calendar years 2005
through 2011, the Administrator of the Energy Information
Administration shall provide to the Administrator of the
Environmental Protection Agency an estimate of the volumes of
gasoline that will be sold or introduced into commerce in the
United States during the following calendar year.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November 30 of each of
the calendar years 2005 through 2011, based on the estimate
provided under subparagraph (A), the Administrator shall
determine and publish in the Federal Register, with respect
to the following calendar year, the renewable fuel obligation
that ensures that the requirements of paragraph (2) are met.
``(ii) Required elements.--The renewable fuel obligation
determined for a calendar year under clause (i) shall--

``(I) be applicable to refiners, blenders, and importers,
as appropriate;
``(II) be expressed in terms of a volume percentage of
gasoline sold or introduced into commerce; and
``(III) subject to subparagraph (C)(i), consist of a single
applicable percentage that applies to all categories of
persons specified in subclause (I).

``(C) Adjustments.--In determining the applicable
percentage for a calendar year, the Administrator shall make
adjustments--
``(i) to prevent the imposition of redundant obligations to
any person specified in subparagraph (B)(ii)(I); and
``(ii) to account for the use of renewable fuel during the
previous calendar year by small refineries that are exempt
under paragraph (11).
``(5) Equivalency.--For the purpose of paragraph (2), 1
gallon of either cellulosic biomass ethanol or waste derived
ethanol--
``(A) shall be considered to be the equivalent of 1.5
gallon of renewable fuel; or
``(B) if the cellulostic biomass ethanol or waste derived
ethanol is derived from agricultural residue or wood residue
or is an agricultural byproduct (as that term is used in
section 919 of the Energy Policy Act of 2005), shall be
considered to be the equivalent of 2.5 gallons of renewable
fuel.
``(6) Credit program.--
``(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, 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 paragraph (11), 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 (7).
``(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 renewable
fuel deficit provided that, in the calendar year following
the year in which the renewable fuel deficit is created, such
person shall achieve compliance with the renewable fuel
requirement under paragraph (2), and shall generate or
purchase additional renewable fuel credits to offset the
renewable fuel deficit of the previous year.
``(7) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of the calendar years 2005 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 one of the periods specified in subparagraph
(D) of the calendar year;
``(ii) a pattern of excessive seasonal variation described
in clause (i) will continue in subsequent calendar years; and
``(iii) promulgating regulations or other requirements to
impose a 35 percent or more seasonal use of renewable fuels
will not prevent or interfere with the attainment of national
ambient air quality standards or significantly increase the
price of motor fuels to the consumer.
``(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
2005 in a State which has received a waiver under section
209(b) shall not be included in the study in subparagraph
(A).
``(8) 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 one 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, shall approve or disapprove a State
petition for a waiver of the requirement of paragraph (2)
within 90 days after the date on which the petition is
received by the Administrator.

[[Page H2287]]

``(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.
``(9) Study and waiver for initial year of program.--Not
later than 180 days after the enactment of this subsection,
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 2005, 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 enactment of this subsection, 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 2005. This
paragraph shall not be interpreted as limiting the
Administrator's authority to waive the requirements of
paragraph (2) in whole, or in part, under paragraph (8) or
paragraph (10), pertaining to waivers.
``(10) Assessment and waiver.--The Administrator, in
consultation with the Secretary of Energy and the Secretary
of Agriculture, shall evaluate the requirement of paragraph
(2) and determine, prior to January 1, 2007, and prior to
January 1 of any subsequent year in which the applicable
volume of renewable fuel is increased under paragraph (2)(B),
whether the requirement of paragraph (2), including the
applicable volume of renewable fuel contained in paragraph
(2)(B) should remain in effect, in whole or in part, during
2007 or any year or years subsequent to 2007. In evaluating
the requirement of paragraph (2) and in making any
determination under this section, the Administrator shall
consider the best available information and data collected by
accepted methods or best available means regarding--
``(A) the capacity of renewable fuel producers to supply an
adequate amount of renewable fuel at competitive prices to
fulfill the requirement of paragraph (2);
``(B) the potential of the requirement of paragraph (2) to
significantly raise the price of gasoline, food (excluding
the net price impact on the requirement in paragraph (2) on
commodities used in the production of ethanol), or heating
oil for consumers in any significant area or region of the
country above the price that would otherwise apply to such
commodities in the absence of such requirement;
``(C) the potential of the requirement of paragraph (2) to
interfere with the supply of fuel in any significant gasoline
market or region of the country, including interference with
the efficient operation of refiners, blenders, importers,
wholesale suppliers, and retail vendors of gasoline, and
other motor fuels; and
``(D) the potential of the requirement of paragraph (2) to
cause or promote exceedances of Federal, State, or local air
quality standards.
If the Administrator determines, by clear and convincing
information, after public notice and the opportunity for
comment, that the requirement of paragraph (2) would have
significant and meaningful adverse impact on the supply of
fuel and related infrastructure or on the economy, public
health, or environment of any significant area or region of
the country, the Administrator may waive, in whole or in
part, the requirement of paragraph (2) in any one year for
which the determination is made for that area or region of
the country, except that any such waiver shall not have the
effect of reducing the applicable volume of renewable fuel
specified in paragraph (2)(B) with respect to any year for
which the determination is made. In determining economic
impact under this paragraph, the Administrator shall not
consider the reduced revenues available from the Highway
Trust Fund (section 9503 of the Internal Revenue Code of
1986) as a result of the use of ethanol.
``(11) Small refineries.--
``(A) In general.--The requirement of paragraph (2) shall
not apply to small refineries until the first calendar year
beginning more than 5 years after the first year set forth in
the table in paragraph (2)(B)(i). Not later than December 31,
2007, 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) Extension of exemption.--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).
``(12) Ethanol market concentration analysis.--
``(A) Analysis.--
``(i) In general.--Not later than 180 days after the date
of enactment of this subsection, and annually thereafter, the
Federal Trade Commission shall perform a market concentration
analysis of the ethanol production industry using the
Herfindahl-Hirschman Index to determine whether there is
sufficient competition among industry participants to avoid
price setting and other anticompetitive behavior.
``(ii) Scoring.--For the purpose of scoring under clause
(i) using the Herfindahl-Hirschman Index, all marketing
arrangements among industry participants shall be considered.
``(B) Report.--Not later than December 1, 2005, and
annually thereafter, the Federal Trade Commission shall
submit to Congress and the Administrator a report on the
results of the market concentration analysis performed under
subparagraph (A)(i).''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean
Air Act (42 U.S.C. 7545(d)) is amended as follows:
(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)''.
(2) In the first sentence of paragraph (2), by striking
``and (n)'' each place it appears and inserting ``(n), and
(o)''.
(c) Survey of Renewable Fuel Market.--
(1) Survey and report.--Not later than December 1, 2006,
and annually thereafter, the Administrator of the
Environmental Protection Agency (in consultation with the
Secretary of Energy acting through the Administrator of the
Energy Information Administration) 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 of the Environmental Protection Agency
(hereinafter in this subsection referred to as the
``Administrator'') may require any refiner, blender, or
importer to keep such records and make such reports as are
necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator, to avoid duplicative
requirements, shall rely, to the extent practicable, on
existing reporting and recordkeeping requirements and other
information available to the Administrator including gasoline
distribution patterns that include multistate use areas.
(3) Applicable law.--Activities carried out under this
subsection shall be conducted in a manner designed to protect
confidentiality of individual responses.

SEC. 1502. FUELS SAFE HARBOR.

(a) In General.--Notwithstanding any other provision of
Federal or State law, no renewable fuel, as defined by
section 211(o)(1) of the Clean Air Act, or methyl tertiary
butyl ether (hereafter in this section referred to as
``MTBE''), used or intended to be used as a motor vehicle
fuel, nor any motor vehicle fuel containing such renewable
fuel or MTBE, shall be deemed a defective product by virtue
of the fact that it is, or contains, such a renewable fuel or
MTBE, if it does not violate a control or prohibition imposed
by the Administrator of the Environmental Protection Agency
(hereinafter in this section referred to as the
``Administrator'') under section 211 of such Act, and the
manufacturer is in compliance with all requests for
information under subsection (b) of such section 211 of such
Act. If the safe harbor provided by this section does not
apply, the existence of a claim of defective product shall be
determined under otherwise applicable law. Nothing in this
subsection shall be construed to affect the liability of any
person for environmental remediation costs, drinking water
contamination, negligence for spills or other reasonably
foreseeable events, public or private nuisance, trespass,
breach of warranty, breach of contract, or any other
liability other than liability based upon a claim of
defective product.
(b) Effective Date.--This section shall be effective as of
September 5, 2003, and shall apply with respect to all claims
filed on or after that date.

[[Page H2288]]

SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE.

(a) Findings.--Congress finds that--
(1) since 1979, methyl tertiary butyl ether (hereinafter in
this section referred to 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
would 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 was aware that gasoline and its component
additives can and do leak from storage tanks;
(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) having previously required oxygenates like MTBE for air
quality purposes, Congress has--
(A) reconsidered the relative value of MTBE in gasoline;
(B) decided to establish a date certain for action by the
Environmental Protection Agency to prohibit the use of MTBE
in gasoline; and
(C) decided to provide for the elimination of the oxygenate
requirement for reformulated gasoline and to provide for a
renewable fuels content requirement for motor fuel; and
(7) 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 the elimination of the oxygenate
requirement for reformulated gasoline and from the decision
to establish a date certain for action by the Environmental
Protection Agency to prohibit the use of MTBE in gasoline.
(b) Purposes.--The purpose of this section is to provide
assistance to merchant producers of MTBE in making the
transition from producing MTBE to producing other fuel
additives.
(c) MTBE Merchant Producer Conversion Assistance.--Section
211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended by
adding at the end the following:
``(5) 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 (hereinafter in this
subsection referred to as `MTBE') 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, iso-octene, alkylates, or renewable fuels.
``(ii) Determination.--The Administrator, in consultation
with the Secretary of Energy, may determine that transition
assistance for the production of iso-octane, iso-octene,
alkylates, or renewable fuels is inconsistent with the
provisions of subparagraph (B) and, on that basis, may deny
applications for grants authorized by this paragraph.
``(B) Further grants.--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 (unless the Administrator
determines that such fuel additives may reasonably be
anticipated to endanger public health or the environment)
that, consistent with this subsection--
``(i) have been registered and have been tested or are
being tested in accordance with the requirements of this
section; and
``(ii) will contribute to replacing gasoline volumes lost
as a result of amendments made to subsection (k) of this
section by section 1504(a) and 1506 of the Energy Policy Act
of 2005.
``(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 MTBE for consumption before April 1, 2003
and ceased production at any time after the date of enactment
of this paragraph.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this paragraph
$250,000,000 for each of fiscal years 2005 through 2012, to
remain available until expended.''.

SEC. 1504. USE OF MTBE.

(a) In General.--Subject to subsections (e) and (f), not
later than December 31, 2014, the use of methyl tertiary
butyl ether (hereinafter in this section referred to as
``MTBE'') in motor vehicle fuel in any State other than a
State described in subsection (c) is prohibited.
(b) Regulations.--The Administrator of the Environmental
Protection Agency (hereafter referred to in this section as
the ``Administrator'') shall promulgate regulations to effect
the prohibition in subsection (a).
(c) States That Authorize Use.--A State described in this
subsection is a State in which the Governor of the State
submits a notification to the Administrator authorizing the
use of MTBE 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 subsection (c).
(e) Trace Quantities.--In carrying out subsection (a), the
Administrator may allow trace quantities of MTBE, not to
exceed 0.5 percent by volume, to be present in motor vehicle
fuel in cases that the Administrator determines to be
appropriate.
(f) Limitation.--The Administrator, under authority of
subsection (a), shall not prohibit or control the production
of MTBE for export from the United States or for any other
use other than for use in motor vehicle fuel.
(g) Effect on State Law.--The amendments made by this title
have no effect regarding any available authority of States to
limit the use of methyl tertiary butyl ether in motor vehicle
fuel.

SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND
PRESIDENTIAL DETERMINATION.

(a) NAS Review.--Not later than May 31, 2013, the Secretary
shall enter into an arrangement with the National Academy of
Sciences to review the use of methyl tertiary butyl ether
(hereafter referred to in this section as ``MTBE'') in fuel
and fuel additives. The review shall only use the best
available scientific information and data collected by
accepted methods or the best available means. The review
shall examine the use of MTBE in fuel and fuel additives,
significant beneficial and detrimental effects of this use on
environmental quality or public health or welfare including
the costs and benefits of such effects, likely effects of
controls or prohibitions on MTBE regarding fuel availability
and price, and other appropriate and reasonable actions that
are available to protect the environment or public health or
welfare from any detrimental effects of the use of MTBE in
fuel or fuel additives. The review shall be peer-reviewed
prior to publication and all supporting data and analytical
models shall be available to the public. The review shall be
completed no later than May 31, 2014.
(b) Presidential Determination.--No later than June 30,
2014, the President may make a determination that
restrictions on the use of MTBE to be implemented pursuant to
section 1504 shall not take place and that the legal
authority contained in section 1504 to prohibit the use of
MTBE in motor vehicle fuel shall become null and void.

SEC. 1506. 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 as follows:
(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).
(II) by redesignating clause (iii) as clause (ii).

(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 such date
of 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 as follows:
(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,''.
(2) By adding at the end the following:
``(B) Maintenance of toxic air pollutant emissions
reductions from reformulated gasoline.--
``(i) Definitions.--In this subparagraph 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, 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

[[Page H2289]]

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 (ii) 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, 2005, 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 of the Environmental Protection Agency
shall revise the reformulated gasoline regulations under
subpart D of part 80 of title 40, Code of Federal
Regulations, to 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 either any legal claims or actions with
respect to regulations promulgated by the Administrator of
the Environmental Protection Agency (hereinafter in this
subsection referred to as the ``Administrator'') prior to the
date of enactment of this Act regarding emissions of toxic
air pollutants from motor vehicles or the adjustment of
standards applicable to a specific refinery or importer made
under such prior regulations and the Administrator may apply
such adjustments to the standards applicable to such refinery
or importer under clause (iii)(I) of section 211(k)(1)(B) of
the Clean Air Act, except that--
(1) the Administrator shall revise such adjustments to be
based only on calendar years 1999-2000; and
(2) for adjustments based on toxic air pollutant emissions
from reformulated gasoline significantly below the national
annual average emissions of toxic air pollutants from all
reformulated gasoline, the Administrator may revise such
adjustments to take account of the scope of Federal or State
prohibitions on the use of methyl tertiary butyl ether
imposed after the date of the enactment of this paragraph,
except that any such adjustment shall require such refiner or
importer, to the greatest extent practicable, to maintain the
reduction achieved during calendar years 1999-2000 in the
average annual aggregate emissions of toxic air pollutants
from reformulated gasoline produced or distributed by the
refinery or importer; Provided, that any such adjustment
shall not be made at a level below the average percentage of
reductions of emissions of toxic air pollutants for
reformulated gasoline supplied to PADD I during calendar
years 1999-2000.

SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

Section 211 of the Clean Air Act (42 U.S.C. 7545) 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 subsection, the Administrator shall
publish for public comment a draft analysis of the changes in
emissions of air pollutants and air quality due to the use of
motor vehicle fuel and fuel additives resulting from
implementation of the amendments made by subtitle A of title
XV of the Energy Policy Act of 2005.
``(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. 1508. 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) Renewable Fuels Survey.--(1) 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 demand 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
and regional basis, including each of the following:
``(A) The quantity of renewable fuels produced.
``(B) The quantity of renewable fuels blended.
``(C) The quantity of renewable fuels imported.
``(D) The quantity of renewable fuels demanded.
``(E) Market price data.
``(F) Such other analyses or evaluations as the
Administrator finds is necessary to achieve the purposes of
this section.
``(2) The Administrator shall also collect or estimate
information both on a national and regional basis, pursuant
to subparagraphs (A) through (F) of paragraph (1), for the 5
years prior to implementation of this subsection.
``(3) This subsection does not affect the authority of the
Administrator to collect data under section 52 of the Federal
Energy Administration Act of 1974 (15 U.S.C. 790a).''.

SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL CONTROLS.

(a) EPA Approval of State Plans With Fuel Controls.--
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)) is amended by adding at the end the following:
``The Administrator shall not approve a control or
prohibition respecting the use of a fuel or fuel additive
under this subparagraph unless the Administrator, after
consultation with the Secretary of Energy, publishes in the
Federal Register a finding that, in the Administrator's
judgment, such control or prohibition will not cause fuel
supply or distribution interruptions or have a significant
adverse impact on fuel producibility in the affected area or
contiguous areas.''.
(b) Study.--The Administrator of the Environmental
Protection Agency (hereinafter in this subsection referred to
as the ``Administrator''), in cooperation with the Secretary
of Energy, shall undertake a study of the projected effects
on air quality, the proliferation of fuel blends, fuel
availability, and fuel costs of providing a preference for
each of the following:
(A) Reformulated gasoline referred to in subsection (k) of
section 211 of the Clean Air Act.
(B) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.0 pounds
per square inch (psi).
(C) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.8 pounds
per square inch (psi).

In carrying out such study, the Administrator shall obtain
comments from affected parties. The Administrator shall
submit the results of such study to the Congress not later
than 18 months after the date of enactment of this Act,
together with any recommended legislative changes.

SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

(a) Study.--
(1) In general.--The Administrator of the Environmental
Protection Agency (hereinafter in this section referred to as
the ``Administrator'') and the Secretary of Energy shall
jointly conduct a study of Federal, State, and local
requirements concerning motor vehicle fuels, including--

[[Page H2290]]

(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 consumers in various States and
localities;
(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 improving air quality at the national, regional and
local levels consistent with the attainment of national
ambient air quality standards, could--
(i) enhance flexibility in the fuel distribution
infrastructure and improve fuel fungibility;
(ii) reduce price volatility and costs to consumers and
producers;
(iii) provide increased liquidity to the gasoline market;
and
(iv) enhance fuel quality, consistency, and supply;
(F) the feasibility of providing incentives to promote
cleaner burning motor vehicle fuel; and
(G) the extent to which improvements in air quality and any
increases or decreases in the price of motor fuel can be
projected to result from the Environmental Protection
Agency's Tier II requirements for conventional gasoline and
vehicle emission systems, the reformulated gasoline program,
the renewable content requirements established by this
subtitle, State programs regarding gasoline volatility, and
any other requirements imposed by States or localities
affecting the composition of motor fuel.
(b) Report.--
(1) In general.--Not later than December 31, 2007, the
Administrator 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 under this subsection 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 under this
subsection, the Administrator 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.

SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE
AND CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.

(a) Definition of Municipal Solid Waste.--In this section,
the term ``municipal solid waste'' has the meaning given the
term ``solid waste'' in section 1004 of the Solid Waste
Disposal Act (42 U.S.C. 6903).
(b) Establishment of Program.--The Secretary of Energy
(hereinafter in this section referred to as the
``Secretary'') shall establish a program to provide
guarantees of loans by private institutions for the
construction of facilities for the processing and conversion
of municipal solid waste and cellulosic biomass into fuel
ethanol and other commercial byproducts.
(c) Requirements.--The Secretary may provide a loan
guarantee under subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
subsection (b);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be
guaranteed in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(d) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest
need for the facility because of--
(A) the limited availability of land for waste disposal;
(B) the availability of sufficient quantities of cellulosic
biomass; or
(C) a high level of demand for fuel ethanol or other
commercial byproducts of the facility.
(e) Maturity.--A loan guaranteed under subsection (b) shall
have a maturity of not more than 20 years.
(f) Terms and Conditions.--The loan agreement for a loan
guaranteed under subsection (b) shall provide that no
provision of the loan agreement may be amended or waived
without the consent of the Secretary.
(g) Assurance of Repayment.--The Secretary shall require
that an applicant for a loan guarantee under subsection (b)
provide an assurance of repayment in the form of a
performance bond, insurance, collateral, or other means
acceptable to the Secretary in an amount equal to not less
than 20 percent of the amount of the loan.
(h) Guarantee Fee.--The recipient of a loan guarantee under
subsection (b) shall pay the Secretary an amount determined
by the Secretary to be sufficient to cover the administrative
costs of the Secretary relating to the loan guarantee.
(i) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(j) Reports.--Until each guaranteed loan under this section
has been repaid in full, the Secretary shall annually submit
to Congress a report on the activities of the Secretary under
this section.
(k) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(l) Termination of Authority.--The authority of the
Secretary to issue a loan guarantee under subsection (b)
terminates on the date that is 10 years after the date of
enactment of this Act.

SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED ETHANOL
CONVERSION ASSISTANCE.

Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(r) Cellulosic Biomass and Waste-Derived Ethanol
Conversion Assistance.--
``(1) In general.--The Secretary of Energy may provide
grants to merchant producers of cellulosic biomass ethanol
and waste-derived ethanol in the United States to assist the
producers in building eligible production facilities
described in paragraph (2) for the production of ethanol.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic biomass or waste-derived feedstocks
derived from agricultural residues, wood residues, municipal
solid waste, or agricultural byproducts as that term is used
in section 919 of the Energy Policy Act of 2005.
``(3) Authorization of appropriations.--There are
authorized to be appropriated the following amounts to carry
out this subsection:
``(A) $100,000,000 for fiscal year 2005.
``(B) $250,000,000 for fiscal year 2006.
``(C) $400,000,000 for fiscal year 2007.''.

SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.

Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(s) Blending of Compliant Reformulated Gasolines.--
``(1) In general.--Notwithstanding subsections (h) and (k)
and subject to the limitations in paragraph (2) of this
subsection, it shall not be a violation of this subtitle for
a gasoline retailer, during any month of the year, to blend
at a retail location batches of ethanol-blended and non-
ethanol-blended reformulated gasoline, provided that--
``(A) each batch of gasoline to be blended has been
individually certified as in compliance with subsections (h)
and (k) prior to being blended;
``(B) the retailer notifies the Administrator prior to such
blending, and identifies the exact location of the retail
station and the specific tank in which such blending will
take place;
``(C) the retailer retains and, as requested by the
Administrator or the Administrator's designee, makes
available for inspection such certifications accounting for
all gasoline at the retail outlet; and
``(D) the retailer does not, between June 1 and September
15 of each year, blend a batch of VOC-controlled, or
`summer', gasoline with a batch of non-VOC-controlled, or
`winter', gasoline (as these terms are defined under
subsections (h) and (k)).
``(2) Limitations.--
``(A) Frequency limitation.--A retailer shall only be
permitted to blend batches of

[[Page H2291]]

compliant reformulated gasoline under this subsection a
maximum of two blending periods between May 1 and September
15 of each calendar year.
``(B) Duration of blending period.--Each blending period
authorized under subparagraph (A) shall extend for a period
of no more than 10 consecutive calendar days.
``(3) Surveys.--A sample of gasoline taken from a retail
location that has blended gasoline within the past 30 days
and is in compliance with subparagraphs (A), (B), (C), and
(D) of paragraph (1) shall not be used in a VOC survey
mandated by 40 C.F.R. Part 80.
``(4) State implementation plans.--A State shall be held
harmless and shall not be required to revise its State
implementation plan under section 110 to account for the
emissions from blended gasoline authorized under paragraph
(1).
``(5) Preservation of state law.--Nothing in this
subsection shall--
``(A) preempt existing State laws or regulations regulating
the blending of compliant gasolines; or
``(B) prohibit a State from adopting such restrictions in
the future.
``(6) Regulations.--The Administrator shall promulgate,
after notice and comment, regulations implementing this
subsection within one year after the date of enactment of
this subsection.
``(7) Effective date.--This subsection shall become
effective 15 months after the date of its enactment and shall
apply to blended batches of reformulated gasoline on or after
that date, regardless of whether the implementing regulations
required by paragraph (6) have been promulgated by the
Administrator by that date.
``(8) Liability.--No person other than the person
responsible for blending under this subsection shall be
subject to an enforcement action or penalties under
subsection (d) solely arising from the blending of compliant
reformulated gasolines by the retailers.
``(9) Formulation of gasoline.--This subsection does not
grant authority to the Administrator or any State (or any
subdivision thereof) to require reformulation of gasoline at
the refinery to adjust for potential or actual emissions
increases due to the blending authorized by this
subsection.''.

Subtitle B--Underground Storage Tank Compliance

SEC. 1521. SHORT TITLE.

This subtitle may be cited as the ``Underground Storage
Tank Compliance Act of 2005''.

SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.

(a) In General.--Section 9004 of the Solid Waste Disposal
Act (42 U.S.C. 6991c) is amended by adding at the end the
following:
``(f) Trust Fund Distribution.--
``(1) In general.--
``(A) Amount and permitted uses of distribution.--The
Administrator shall distribute to States not less than 80
percent of the funds from the Trust Fund that are made
available to the Administrator under section 9014(2)(A) for
each fiscal year for use in paying the reasonable costs,
incurred under a cooperative agreement with any State for--
``(i) corrective actions taken by the State under section
9003(h)(7)(A);
``(ii) necessary administrative expenses, as determined by
the Administrator, that are directly related to State fund or
State assurance programs under subsection (c)(1); or
``(iii) enforcement, by a State or a local government, of
State or local regulations pertaining to underground storage
tanks regulated under this subtitle.
``(B) Use of funds for enforcement.--In addition to the
uses of funds authorized under subparagraph (A), the
Administrator may use funds from the Trust Fund that are not
distributed to States under subparagraph (A) for enforcement
of any regulation promulgated by the Administrator under this
subtitle.
``(C) Prohibited uses.--Funds provided to a State by the
Administrator under subparagraph (A) shall not be used by the
State to provide financial assistance to an owner or operator
to meet any requirement relating to underground storage tanks
under subparts B, C, D, H, and G of part 280 of title 40,
Code of Federal Regulations (as in effect on the date of
enactment of this subsection).
``(2) Allocation.--
``(A) Process.--Subject to subparagraphs (B) and (C), in
the case of a State with which the Administrator has entered
into a cooperative agreement under section 9003(h)(7)(A), the
Administrator shall distribute funds from the Trust Fund to
the State using an allocation process developed by the
Administrator.
``(B) Diversion of state funds.--The Administrator shall
not distribute funds under subparagraph (A)(iii) of
subsection (f)(1) to any State that has diverted funds from a
State fund or State assurance program for purposes other than
those related to the regulation of underground storage tanks
covered by this subtitle, with the exception of those
transfers that had been completed earlier than the date of
enactment of this subsection.
``(C) Revisions to process.--The Administrator may revise
the allocation process referred to in subparagraph (A)
after--
``(i) consulting with State agencies responsible for
overseeing corrective action for releases from underground
storage tanks; and
``(ii) taking into consideration, at a minimum, each of the
following:

``(I) The number of confirmed releases from federally
regulated leaking underground storage tanks in the States.
``(II) The number of federally regulated underground
storage tanks in the States.
``(III) The performance of the States in implementing and
enforcing the program.
``(IV) The financial needs of the States.
``(V) The ability of the States to use the funds referred
to in subparagraph (A) in any year.

``(3) Distributions to state agencies.--Distributions from
the Trust Fund under this subsection shall be made directly
to a State agency that--
``(A) enters into a cooperative agreement referred to in
paragraph (2)(A); or
``(B) is enforcing a State program approved under this
section.''.
(b) Withdrawal of Approval of State Funds.--Section 9004(c)
of the Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is
amended by inserting the following new paragraph at the end
thereof:
``(6) Withdrawal of approval.--After an opportunity for
good faith, collaborative efforts to correct financial
deficiencies with a State fund, the Administrator may
withdraw approval of any State fund or State assurance
program to be used as a financial responsibility mechanism
without withdrawing approval of a State underground storage
tank program under section 9004(a).''.
(c) Ability to Pay.--Section 9003(h)(6) of the Solid Waste
Disposal Act (42 U.S.C. 6591a(h)(6)) is amended by adding the
following new subparagraph at the end thereof:
``(E) Inability or limited ability to pay.--
``(i) In general.--In determining the level of recovery
effort, or amount that should be recovered, the Administrator
(or the State pursuant to paragraph (7)) shall consider the
owner or operator's ability to pay. An inability or limited
ability to pay corrective action costs must be demonstrated
to the Administrator (or the State pursuant to paragraph (7))
by the owner or operator.
``(ii) Considerations.--In determining whether or not a
demonstration is made under clause (i), the Administrator (or
the State pursuant to paragraph (7)) shall take into
consideration the ability of the owner or operator to pay
corrective action costs and still maintain its basic business
operations, including consideration of the overall financial
condition of the owner or operator and demonstrable
constraints on the ability of the owner or operator to raise
revenues.
``(iii) Information.--An owner or operator requesting
consideration under this subparagraph shall promptly provide
the Administrator (or the State pursuant to paragraph (7))
with all relevant information needed to determine the ability
of the owner or operator to pay corrective action costs.
``(iv) Alternative payment methods.--The Administrator (or
the State pursuant to paragraph (7)) shall consider
alternative payment methods as may be necessary or
appropriate if the Administrator (or the State pursuant to
paragraph (7)) determines that an owner or operator cannot
pay all or a portion of the costs in a lump sum payment.
``(iii) Misrepresentation.--If an owner or operator
provides false information or otherwise misrepresents their
financial situation under clause (ii), the Administrator (or
the State pursuant to paragraph (7)) shall seek full recovery
of the costs of all such actions pursuant to the provisions
of subparagraph (A) without consideration of the factors in
subparagraph (B).''.

SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.

(a) Inspection Requirements.--Section 9005 of the Solid
Waste Disposal Act (42 U.S.C. 6991d) is amended by inserting
the following new subsection at the end thereof:
``(c) Inspection Requirements.--
``(1) Uninspected tanks.--In the case of underground
storage tanks regulated under this subtitle that have not
undergone an inspection since December 22, 1998, not later
than 2 years after the date of enactment of this subsection,
the Administrator or a State that receives funding under this
subtitle, as appropriate, shall conduct on-site inspections
of all such tanks to determine compliance with this subtitle
and the regulations under this subtitle (40 C.F.R. 280) or a
requirement or standard of a State program developed under
section 9004.
``(2) Periodic inspections.--After completion of all
inspections required under paragraph (1), the Administrator
or a State that receives funding under this subtitle, as
appropriate, shall conduct on-site inspections of each
underground storage tank regulated under this subtitle at
least once every 3 years to determine compliance with this
subtitle and the regulations under this subtitle (40 C.F.R.
280) or a requirement or standard of a State program
developed under section 9004. The Administrator may extend
for up to one additional year the first 3-year inspection
interval under this paragraph if the State demonstrates that
it has insufficient resources to complete all such
inspections within the first 3-year period.
``(3) Inspection authority.--Nothing in this section shall
be construed to diminish the Administrator's or a State's
authorities under section 9005(a).''.
(b) Study of Alternative Inspection Programs.--The
Administrator of the Environmental Protection Agency, in
coordination with a State, shall gather information on
compliance assurance programs that could serve as an
alternative to the inspection programs under section 9005(c)
of the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and

[[Page H2292]]

shall, within 4 years after the date of enactment of this
Act, submit a report to the Congress containing the results
of such study.

SEC. 1524. OPERATOR TRAINING.

(a) In General.--Section 9010 of the Solid Waste Disposal
Act (42 U.S.C. 6991i) is amended to read as follows:

``SEC. 9010. OPERATOR TRAINING.

``(a) Guidelines.--
``(1) In general.--Not later than 2 years after the date of
enactment of the Underground Storage Tank Compliance Act of
2005, in consultation and cooperation with States and after
public notice and opportunity for comment, the Administrator
shall publish guidelines that specify training requirements
for--
``(A) persons having primary responsibility for on-site
operation and maintenance of underground storage tank
systems;
``(B) persons having daily on-site responsibility for the
operation and maintenance of underground storage tanks
systems; and
``(C) daily, on-site employees having primary
responsibility for addressing emergencies presented by a
spill or release from an underground storage tank system.
``(2) Considerations.--The guidelines described in
paragraph (1) shall take into account--
``(A) State training programs in existence as of the date
of publication of the guidelines;
``(B) training programs that are being employed by tank
owners and tank operators as of the date of enactment of the
Underground Storage Tank Compliance Act of 2005;
``(C) the high turnover rate of tank operators and other
personnel;
``(D) the frequency of improvement in underground storage
tank equipment technology;
``(E) the nature of the businesses in which the tank
operators are engaged;
``(F) the substantial differences in the scope and length
of training needed for the different classes of persons
described in subparagraphs (A), (B), and (C) of paragraph
(1); and
``(G) such other factors as the Administrator determines to
be necessary to carry out this section.
``(b) State Programs.--
``(1) In general.--Not later than 2 years after the date on
which the Administrator publishes the guidelines under
subsection (a)(1), each State that receives funding under
this subtitle shall develop State-specific training
requirements that are consistent with the guidelines
developed under subsection (a)(1).
``(2) Requirements.--State requirements described in
paragraph (1) shall--
``(A) be consistent with subsection (a);
``(B) be developed in cooperation with tank owners and tank
operators;
``(C) take into consideration training programs implemented
by tank owners and tank operators as of the date of enactment
of this section; and
``(D) be appropriately communicated to tank owners and
operators.
``(3) Financial incentive.--The Administrator may award to
a State that develops and implements requirements described
in paragraph (1), in addition to any funds that the State is
entitled to receive under this subtitle, not more than
$200,000, to be used to carry out the requirements.
``(c) Training.--All persons that are subject to the
operator training requirements of subsection (a) shall--
``(1) meet the training requirements developed under
subsection (b); and
``(2) repeat the applicable requirements developed under
subsection (b), if the tank for which they have primary daily
on-site management responsibilities is determined to be out
of compliance with--
``(A) a requirement or standard promulgated by the
Administrator under section 9003; or
``(B) a requirement or standard of a State program approved
under section 9004.''.
(b) State Program Requirement.--Section 9004(a) of the
Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended by
striking ``and'' at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting ``; and'',
and by adding the following new paragraph at the end thereof:
``(9) State-specific training requirements as required by
section 9010.''.
(c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e) is amended as follows:
(1) By striking ``or'' at the end of subparagraph (B).
(2) By adding the following new subparagraph after
subparagraph (C):
``(D) the training requirements established by States
pursuant to section 9010 (relating to operator training);
or''.
(d) Table of Contents.--The item relating to section 9010
in table of contents for the Solid Waste Disposal Act is
amended to read as follows:

``Sec. 9010. Operator training.''.

SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.

Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended as follows:
(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 striking ``and including the authorities of
paragraphs (4), (6), and (8) of this subsection'' and
inserting ``and the authority under sections 9011 and 9012
and paragraphs (4), (6), and (8),''.
(2) By adding at the end the following:
``(12) Remediation of oxygenated fuel contamination.--
``(A) In general.--The Administrator and the States may use
funds made available under section 9014(2)(B) to carry out
corrective actions with respect to a release of a fuel
containing an oxygenated fuel additive that presents a threat
to human health or welfare or the environment.
``(B) Applicable authority.--The Administrator or a State
shall carry out subparagraph (A) in accordance with paragraph
(2), and in the case of a State, in accordance with a
cooperative agreement entered into by the Administrator and
the State under paragraph (7).''.

SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.

(a) Release Prevention and Compliance.--Subtitle I of the
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended
by adding at the end the following:

``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND
COMPLIANCE.

``Funds made available under section 9014(2)(D) from the
Trust Fund may be used to conduct inspections, issue orders,
or bring actions under this subtitle--
``(1) by a State, in accordance with a grant or cooperative
agreement with the Administrator, of State regulations
pertaining to underground storage tanks regulated under this
subtitle; and
``(2) by the Administrator, for tanks regulated under this
subtitle (including under a State program approved under
section 9004).''.
(b) Government-Owned Tanks.--Section 9003 of the Solid
Waste Disposal Act (42 U.S.C. 6991b) is amended by adding at
the end the following:
``(i) Government-Owned Tanks.--
``(1) State compliance report.--(A) Not later than 2 years
after the date of enactment of this subsection, each State
that receives funding under this subtitle shall submit to the
Administrator a State compliance report that--
``(i) lists the location and owner of each underground
storage tank described in subparagraph (B) in the State that,
as of the date of submission of the report, is not in
compliance with section 9003; and
``(ii) specifies the date of the last inspection and
describes the actions that have been and will be taken to
ensure compliance of the underground storage tank listed
under clause (i) with this subtitle.
``(B) An underground storage tank described in this
subparagraph is an underground storage tank that is--
``(i) regulated under this subtitle; and
``(ii) owned or operated by the Federal, State, or local
government.
``(C) The Administrator shall make each report, received
under subparagraph (A), available to the public through an
appropriate media.
``(2) Financial incentive.--The Administrator may award to
a State that develops a report described in paragraph (1), in
addition to any other funds that the State is entitled to
receive under this subtitle, not more than $50,000, to be
used to carry out the report.
``(3) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.
(c) Public Record.--Section 9002 of the Solid Waste
Disposal Act (42 U.S.C. 6991a) is amended by adding at the
end the following:
``(d) Public Record.--
``(1) In general.--The Administrator shall require each
State that receives Federal funds to carry out this subtitle
to maintain, update at least annually, and make available to
the public, in such manner and form as the Administrator
shall prescribe (after consultation with States), a record of
underground storage tanks regulated under this subtitle.
``(2) Considerations.--To the maximum extent practicable,
the public record of a State, respectively, shall include,
for each year--
``(A) the number, sources, and causes of underground
storage tank releases in the State;
``(B) the record of compliance by underground storage tanks
in the State with--
``(i) this subtitle; or
``(ii) an applicable State program approved under section
9004; and
``(C) data on the number of underground storage tank
equipment failures in the State.''.
(d) Incentive for Performance.--Section 9006 of the Solid
Waste Disposal Act (42 U.S.C. 6991e) is amended by adding at
the end the following:
``(e) Incentive for Performance.--Both of the following may
be taken into account in determining the terms of a civil
penalty under subsection (d):
``(1) The compliance history of an owner or operator in
accordance with this subtitle or a program approved under
section 9004.
``(2) Any other factor the Administrator considers
appropriate.''.
(e) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:

``Sec. 9011. Use of funds for release prevention and compliance.''.

SEC. 1527. DELIVERY PROHIBITION.

(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:

``SEC. 9012. DELIVERY PROHIBITION.

``(a) Requirements.--

[[Page H2293]]

``(1) Prohibition of delivery or deposit.--Beginning 2
years after the date of enactment of this section, it shall
be unlawful to deliver to, deposit into, or accept a
regulated substance into an underground storage tank at a
facility which has been identified by the Administrator or a
State implementing agency to be ineligible for fuel delivery
or deposit.
``(2) Guidance.--Within 1 year after the date of enactment
of this section, the Administrator and States that receive
funding under this subtitle shall, in consultation with the
underground storage tank owner and product delivery
industries, for territory for which they are the primary
implementing agencies, publish guidelines detailing the
specific processes and procedures they will use to implement
the provisions of this section. The processes and procedures
include, at a minimum--
``(A) the criteria for determining which underground
storage tank facilities are ineligible for delivery or
deposit;
``(B) the mechanisms for identifying which facilities are
ineligible for delivery or deposit to the underground storage
tank owning and fuel delivery industries;
``(C) the process for reclassifying ineligible facilities
as eligible for delivery or deposit; and
``(D) a delineation of, or a process for determining, the
specified geographic areas subject to paragraph (4).
``(3) Delivery prohibition notice.--
``(A) Roster.--The Administrator and each State
implementing agency that receives funding under this subtitle
shall establish within 24 months after the date of enactment
of this section a Delivery Prohibition Roster listing
underground storage tanks under the Administrator's or the
State's jurisdiction that are determined to be ineligible for
delivery or deposit pursuant to paragraph (2).
``(B) Notification.--The Administrator and each State, as
appropriate, shall make readily known, to underground storage
tank owners and operators and to product delivery industries,
the underground storage tanks listed on a Delivery
Prohibition Roster by:
``(i) posting such Rosters, including the physical location
and street address of each listed underground storage tank,
on official web sites and, if the Administrator or the State
so chooses, other electronic means;
``(ii) updating these Rosters periodically; and
``(iii) installing a tamper-proof tag, seal, or other
device blocking the fill pipes of such underground storage
tanks to prevent the delivery of product into such
underground storage tanks.
``(C) Roster updates.--The Administrator and the State
shall update the Delivery Prohibition Rosters as appropriate,
but not less than once a month on the first day of the month.
``(D) Tampering with device.--
``(i) Prohibition.--It shall be unlawful for any person,
other than an authorized representative of the Administrator
or a State, as appropriate, to remove, tamper with, destroy,
or damage a device installed by the Administrator or a State,
as appropriate, under subparagraph (B)(iii) of this
subsection.
``(ii) Civil penalties.--Any person violating clause (i) of
this subparagraph shall be subject to a civil penalty not to
exceed $10,000 for each violation.
``(4) Limitation.--
``(A) Rural and remote areas.--Subject to subparagraph (B),
the Administrator or a State shall not include an underground
storage tank on a Delivery Prohibition Roster under paragraph
(3) if an urgent threat to public health, as determined by
the Administrator, does not exist and if such a delivery
prohibition would jeopardize the availability of, or access
to, fuel in any rural and remote areas.
``(B) Applicability of limitation.--The limitation under
subparagraph (A) shall apply only during the 180-day period
following the date of a determination by the Administrator or
the appropriate State that exercising the authority of
paragraph (3) is limited by subparagraph (A).
``(b) Effect on State Authority.--Nothing in this section
shall affect the authority of a State to prohibit the
delivery of a regulated substance to an underground storage
tank.
``(c) Defense to Violation.--A person shall not be in
violation of subsection (a)(1) if the underground storage
tank into which a regulated substance is delivered is not
listed on the Administrator's or the appropriate State's
Prohibited Delivery Roster 7 calendar days prior to the
delivery being made.''.
(b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By adding the following new subparagraph after
subparagraph (D):
``(E) the delivery prohibition requirement established by
section 9012,''.
(2) By adding the following new sentence at the end
thereof: ``Any person making or accepting a delivery or
deposit of a regulated substance to an underground storage
tank at an ineligible facility in violation of section 9012
shall also be subject to the same civil penalty for each day
of such violation.''.
(c) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:

``Sec. 9012. Delivery prohibition.''.

SEC. 1528. FEDERAL FACILITIES.

Section 9007 of the Solid Waste Disposal Act (42 U.S.C.
6991f) is amended to read as follows:

``SEC. 9007. FEDERAL FACILITIES.

``(a) In General.--Each department, agency, and
instrumentality of the executive, legislative, and judicial
branches of the Federal Government (1) having jurisdiction
over any underground storage tank or underground storage tank
system, or (2) engaged in any activity resulting, or which
may result, in the installation, operation, management, or
closure of any underground storage tank, release response
activities related thereto, or in the delivery, acceptance,
or deposit of any regulated substance to an underground
storage tank or underground storage tank system shall be
subject to, and comply with, all Federal, State, interstate,
and local requirements, both substantive and procedural
(including any requirement for permits or reporting or any
provisions for injunctive relief and such sanctions as may be
imposed by a court to enforce such relief), respecting
underground storage tanks in the same manner, and to the same
extent, as any person is subject to such requirements,
including the payment of reasonable service charges. The
Federal, State, interstate, and local substantive and
procedural requirements referred to in this subsection
include, but are not limited to, all administrative orders
and all civil and administrative penalties and fines,
regardless of whether such penalties or fines are punitive or
coercive in nature or are imposed for isolated, intermittent,
or continuing violations. The United States hereby expressly
waives any immunity otherwise applicable to the United States
with respect to any such substantive or procedural
requirement (including, but not limited to, any injunctive
relief, administrative order or civil or administrative
penalty or fine referred to in the preceding sentence, or
reasonable service charge). The reasonable service charges
referred to in this subsection include, but are not limited
to, fees or charges assessed in connection with the
processing and issuance of permits, renewal of permits,
amendments to permits, review of plans, studies, and other
documents, and inspection and monitoring of facilities, as
well as any other nondiscriminatory charges that are assessed
in connection with a Federal, State, interstate, or local
underground storage tank regulatory program. Neither the
United States, nor any agent, employee, or officer thereof,
shall be immune or exempt from any process or sanction of any
State or Federal Court with respect to the enforcement of any
such injunctive relief. No agent, employee, or officer of the
United States shall be personally liable for any civil
penalty under any Federal, State, interstate, or local law
concerning underground storage tanks with respect to any act
or omission within the scope of the official duties of the
agent, employee, or officer. An agent, employee, or officer
of the United States shall be subject to any criminal
sanction (including, but not limited to, any fine or
imprisonment) under any Federal or State law concerning
underground storage tanks, but no department, agency, or
instrumentality of the executive, legislative, or judicial
branch of the Federal Government shall be subject to any such
sanction. The President may exempt any underground storage
tank of any department, agency, or instrumentality in the
executive branch from compliance with such a requirement if
he determines it to be in the paramount interest of the
United States to do so. No such exemption shall be granted
due to lack of appropriation unless the President shall have
specifically requested such appropriation as a part of the
budgetary process and the Congress shall have failed to make
available such requested appropriation. Any exemption shall
be for a period not in excess of one year, but additional
exemptions may be granted for periods not to exceed one year
upon the President's making a new determination. The
President shall report each January to the Congress all
exemptions from the requirements of this section granted
during the preceding calendar year, together with his reason
for granting each such exemption.
``(b) Review of and Report on Federal Underground Storage
Tanks.--
``(1) Review.--Not later than 12 months after the date of
enactment of the Underground Storage Tank Compliance Act of
2005, each Federal agency that owns or operates 1 or more
underground storage tanks, or that manages land on which 1 or
more underground storage tanks are located, shall submit to
the Administrator, the Committee on Energy and Commerce of
the United States House of Representatives, and the Committee
on the Environment and Public Works of the United States
Senate a compliance strategy report that--
``(A) lists the location and owner of each underground
storage tank described in this paragraph;
``(B) lists all tanks that are not in compliance with this
subtitle that are owned or operated by the Federal agency;
``(C) specifies the date of the last inspection by a State
or Federal inspector of each underground storage tank owned
or operated by the agency;
``(D) lists each violation of this subtitle respecting any
underground storage tank owned or operated by the agency;
``(E) describes the operator training that has been
provided to the operator and other persons having primary
daily on-site management responsibility for the operation and
maintenance of underground storage tanks owned or operated by
the agency; and

[[Page H2294]]

``(F) describes the actions that have been and will be
taken to ensure compliance for each underground storage tank
identified under subparagraph (B).
``(2) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.

SEC. 1529. TANKS ON TRIBAL LANDS.

(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding the following
at the end thereof:

``SEC. 9013. TANKS ON TRIBAL LANDS.

``(a) Strategy.--The Administrator, in coordination with
Indian tribes, shall, not later than 1 year after the date of
enactment of this section, develop and implement a strategy--
``(1) giving priority to releases that present the greatest
threat to human health or the environment, to take necessary
corrective action in response to releases from leaking
underground storage tanks located wholly within the
boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an Indian
tribe; and
``(2) to implement and enforce requirements concerning
underground storage tanks located wholly within the
boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an Indian
tribe.
``(b) Report.--Not later than 2 years after the date of
enactment of this section, the Administrator shall submit to
Congress a report that summarizes the status of
implementation and enforcement of this subtitle in areas
located wholly within--
``(1) the boundaries of Indian reservations; and
``(2) any other areas under the jurisdiction of an Indian
tribe.

The Administrator shall make the report under this subsection
available to the public.
``(c) Not a Safe Harbor.--This section does not relieve any
person from any obligation or requirement under this
subtitle.
``(d) State Authority.--Nothing in this section applies to
any underground storage tank that is located in an area under
the jurisdiction of a State, or that is subject to regulation
by a State, as of the date of enactment of this section.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:

``Sec. 9013. Tanks on Tribal lands.''.

SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUNDWATER.

(a) In General.--Section 9003 of the Solid Waste Disposal
Act (42 U.S.C. 6991b) is amended by adding the following new
subsection at the end:
``(i) Additional Measures to Protect Groundwater From
Contamination.--The Administrator shall require each State
that receives funding under this subtitle to require one of
the following:
``(1) Tank and piping secondary containment.--(A) Each new
underground storage tank, or piping connected to any such new
tank, installed after the effective date of this subsection,
or any existing underground storage tank, or existing piping
connected to such existing tank, that is replaced after the
effective date of this subsection, shall be secondarily
contained and monitored for leaks if the new or replaced
underground storage tank or piping is within 1,000 feet of
any existing community water system or any existing potable
drinking water well.
``(B) In the case of a new underground storage tank system
consisting of one or more underground storage tanks and
connected by piping, subparagraph (A) shall apply to all
underground storage tanks and connected pipes comprising such
system.
``(C) In the case of a replacement of an existing
underground storage tank or existing piping connected to the
underground storage tank, subparagraph (A) shall apply only
to the specific underground storage tank or piping being
replaced, not to other underground storage tanks and
connected pipes comprising such system.
``(D) Each installation of a new motor fuel dispenser
system, after the effective date of this subsection, shall
include under-dispenser spill containment if the new
dispenser is within 1,000 feet of any existing community
water system or any existing potable drinking water well.
``(E) This paragraph shall not apply to repairs to an
underground storage tank, piping, or dispenser that are meant
to restore a tank, pipe, or dispenser to operating condition
``(F) As used in this subsection:
``(i) The term `secondarily contained' means a release
detection and prevention system that meets the requirements
of 40 CFR 280.43(g), but shall not include under-dispenser
spill containment or control systems.
``(ii) The term `underground storage tank' has the meaning
given to it in section 9001, except that such term does not
include tank combinations or more than a single underground
pipe connected to a tank.
``(iii) The term `installation of a new motor fuel
dispenser system' means the installation of a new motor fuel
dispenser and the equipment necessary to connect the
dispenser to the underground storage tank system, but does
not mean the installation of a motor fuel dispenser installed
separately from the equipment need to connect the dispenser
to the underground storage tank system.
``(G) The Administrator may issue regulations or guidelines
implementing the requirements of this subsection.
``(2) Evidence of financial responsibility and
certification.--
``(A) Manufacturer and installer financial
responsibility.--A person that manufactures an underground
storage tank or piping for an underground storage tank system
or that installs an underground storage tank system is
required to maintain evidence of financial responsibility
under section 9003(d) in order to provide for the costs of
corrective actions directly related to releases caused by
improper manufacture or installation unless the person can
demonstrate themselves to be already covered as an owner or
operator of an underground storage tank under section 9003.
``(B) Installer certification.--The Administrator and each
State that receives funding under this subtitle, as
appropriate, shall require that a person that installs an
underground storage tank system is--
``(i) certified or licensed by the tank and piping
manufacturer;
``(ii) certified or licensed by the Administrator or a
State, as appropriate;
``(iii) has their underground storage tank system
installation certified by a registered professional engineer
with education and experience in underground storage tank
system installation;
``(iv) has had their installation of the underground
storage tank inspected and approved by the Administrator or
the State, as appropriate;
``(v) compliant with a code of practice developed by a
nationally recognized association or independent testing
laboratory and in accordance with the manufacturers
instructions; or
``(vi) compliant with another method that is determined by
the Administrator or a State, as appropriate, to be no less
protective of human health and the environment.''.
(b) Effective Date.--This subsection shall take effect 18
months after the date of enactment of this subsection
(c) Promulgation of Regulations or Guidelines.--The
Administrator shall issue regulations or guidelines
implementing the requirements of this subsection, including
guidance to differentiate between the terms ``repair'' and
``replace'' for the purposes of section 9003(i)(1) of the
Solid Waste Disposal Act.
(d) Penalties.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By striking ``or'' at the end of subparagraph (B).
(2) By inserting ``; or'' at the end of subparagraph (C).
(3) By adding the following new subparagraph after
subparagraph (C):
``(D) the requirements established in section 9003(i),''.

SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:

``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to the
Administrator the following amounts:
``(1) To carry out subtitle I (except sections 9003(h),
9005(c), 9011 and 9012) $50,000,000 for each of fiscal years
2005 through 2009.
``(2) From the Trust Fund, notwithstanding section
9508(c)(1) of the Internal Revenue Code of 1986:
``(A) to carry out section 9003(h) (except section
9003(h)(12)) $200,000,000 for each of fiscal years 2005
through 2009;
``(B) to carry out section 9003(h)(12), $200,000,000 for
each of fiscal years 2005 through 2009;
``(C) to carry out sections 9004(f) and 9005(c)
$100,000,000 for each of fiscal years 2005 through 2009; and
``(D) to carry out sections 9011 and 9012 $55,000,000 for
each of fiscal years 2005 through 2009.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:

``Sec. 9014. Authorization of appropriations.''.

SEC. 1532. CONFORMING AMENDMENTS.

(a) In General.--Section 9001 of the Solid Waste Disposal
Act (42 U.S.C. 6991) is amended as follows:
(1) By striking ``For the purposes of this subtitle--'' and
inserting ``In this subtitle:''.
(2) By redesignating paragraphs (1), (2), (3), (4), (5),
(6), (7), and (8) as paragraphs (10), (7), (4), (3), (8),
(5), (2), and (6), respectively.
(3) By inserting before paragraph (2) (as redesignated by
paragraph (2) of this subsection) the following:
``(1) Indian tribe.--
``(A) In general.--The term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or community
that is recognized as being eligible for special programs and
services provided by the United States to Indians because of
their status as Indians.
``(B) Inclusions.--The term `Indian tribe' includes an
Alaska Native village, as defined in or established under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.);
and''.
(4) By inserting after paragraph (8) (as redesignated by
paragraph (2) of this subsection) the following:
``(9) Trust fund.--The term `Trust Fund' means the Leaking
Underground Storage Tank Trust Fund established by section
9508 of the Internal Revenue Code of 1986.''.

[[Page H2295]]

(b) Conforming Amendments.--The Solid Waste Disposal Act
(42 U.S.C. 6901 and following) is amended as follows:
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is amended--
(A) in paragraph (1), by striking ``9001(2)(B)'' and
inserting ``9001(7)(B)''; and
(B) in paragraphs (2) and (3), by striking ``9001(2)(A)''
each place it appears and inserting ``9001(7)(A)''.
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended in
paragraphs (1), (2)(C), (7)(A), and (11) by striking
``Leaking Underground Storage Tank Trust Fund'' each place it
appears and inserting ``Trust Fund''.
(3) Section 9009 (42 U.S.C. 6991h) is amended--
(A) in subsection (a), by striking ``9001(2)(B)'' and
inserting ``9001(7)(B)''; and
(B) in subsection (d), by striking ``section 9001(1) (A)
and (B)'' and inserting ``subparagraphs (A) and (B) of
section 9001(10)''.

SEC. 1533. TECHNICAL AMENDMENTS.

The Solid Waste Disposal Act is amended as follows:
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is amended by
striking ``sustances'' and inserting ``substances''.
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended
by striking ``subsection (c) and (d) of this section'' and
inserting ``subsections (c) and (d)''.
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by
striking ``in 9001(2) (A) or (B) or both'' and inserting ``in
subparagraph (A) or (B) of section 9001(7)''.
(4) Section 9005 (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''.

Subtitle C--Boutique Fuels

SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.

(a) Temporary Waivers During Supply Emergencies.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C))
is amended by inserting ``(i)'' after ``(C)'' and by adding
the following new clauses at the end thereof:
``(ii) The Administrator may temporarily waive a control or
prohibition respecting the use of a fuel or fuel additive
required or regulated by the Administrator pursuant to
subsection (c), (h), (i), (k), or (m) of this section or
prescribed in an applicable implementation plan under section
110 approved by the Administrator under clause (i) of this
subparagraph if, after consultation with, and concurrence by,
the Secretary of Energy, the Administrator determines that--
``(I) extreme and unusual fuel or fuel additive supply
circumstances exist in a State or region of the Nation which
prevent the distribution of an adequate supply of the fuel or
fuel additive to consumers;
``(II) such extreme and unusual fuel and fuel additive
supply circumstances are the result of a natural disaster, an
Act of God, a pipeline or refinery equipment failure, or
another event that could not reasonably have been foreseen or
prevented and not the lack of prudent planning on the part of
the suppliers of the fuel or fuel additive to such State or
region; and
``(III) it is in the public interest to grant the waiver
(for example, when a waiver is necessary to meet projected
temporary shortfalls in the supply of the fuel or fuel
additive in a State or region of the Nation which cannot
otherwise be compensated for).
``(iii) If the Administrator makes the determinations
required under clause (ii), such a temporary extreme and
unusual fuel and fuel additive supply circumstances waiver
shall be permitted only if--
``(I) the waiver applies to the smallest geographic area
necessary to address the extreme and unusual fuel and fuel
additive supply circumstances;
``(II) the waiver is effective for a period of 20 calendar
days or, if the Administrator determines that a shorter
waiver period is adequate, for the shortest practicable time
period necessary to permit the correction of the extreme and
unusual fuel and fuel additive supply circumstances and to
mitigate impact on air quality;
``(III) the waiver permits a transitional period, the exact
duration of which shall be determined by the Administrator,
after the termination of the temporary waiver to permit
wholesalers and retailers to blend down their wholesale and
retail inventory;
``(IV) the waiver applies to all persons in the motor fuel
distribution system; and
``(V) the Administrator has given public notice to all
parties in the motor fuel distribution system, and local and
State regulators, in the State or region to be covered by the
waiver.

The term `motor fuel distribution system' as used in this
clause shall be defined by the Administrator through
rulemaking.
``(iv) Within 180 days of the date of enactment of this
clause, the Administrator shall promulgate regulations to
implement clauses (ii) and (iii).
``(v) Nothing in this subparagraph shall--
``(I) limit or otherwise affect the application of any
other waiver authority of the Administrator pursuant to this
section or pursuant to a regulation promulgated pursuant to
this section; and
``(II) subject any State or person to an enforcement
action, penalties, or liability solely arising from actions
taken pursuant to the issuance of a waiver under this
subparagraph.''.
(b) Limit on Number of Boutique Fuels.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)), as
amended by subsection (a), is further amended by adding at
the end the following:
``(v)(I) The Administrator shall have no authority, when
considering a State implementation plan or a State
implementation plan revision, to approve under this paragraph
any fuel included in such plan or revision if the effect of
such approval increases the total number of fuels approved
under this paragraph as of September 1, 2004, in all State
implementation plans.
``(II) The Administrator, in consultation with the
Secretary of Energy, shall determine the total number of
fuels approved under this paragraph as of September 1, 2004,
in all State implementation plans and shall publish a list of
such fuels, including the states and Petroleum Administration
for Defense District in which they are used, in the Federal
Register for public review and comment no later than 90 days
after enactment.
``(III) The Administrator shall remove a fuel from the list
published under subclause (II) if a fuel ceases to be
included in a State implementation plan or if a fuel in a
State implementation plan is identical to a Federal fuel
formulation implemented by the Administrator, but the
Administrator shall not reduce the total number of fuels
authorized under the list published under subclause (II).
``(IV) Subclause (I) shall not limit the Administrator's
authority to approve a control or prohibition respecting any
new fuel under this paragraph in a State implementation plan
or revision to a State implementation plan if such new fuel:
``(aa) completely replaces a fuel on the list published
under subclause (II); or
``(bb) does not increase the total number of fuels on the
list published under subclause (II) as of September 1, 2004.

In the event that the total number of fuels on the list
published under subclause (II) at the time of the
Administrator's consideration of a control or prohibition
respecting a new fuel is lower than the total number of fuels
on such list as of September 1, 2004, the Administrator may
approve a control or prohibition respecting a new fuel under
this subclause if the Administrator, after consultation with
the Secretary of Energy, publishes in the Federal Register
after notice and comment a finding that, in the
Administrator's judgment, such control or prohibition
respecting a new fuel will not cause fuel supply or
distribution interruptions or have a significant adverse
impact on fuel producibility in the affected area or
contiguous areas.
``(V) The Administrator shall have no authority under this
paragraph, when considering any particular State's
implementation plan or a revision to that State's
implementation plan, to approve any fuel unless that fuel
was, as of the date of such consideration, approved in at
least one State implementation plan in the applicable
Petroleum Administration for Defense District. However, the
Administrator may approve as part of a State implementation
plan or State implementation plan revision a fuel with a
summertime Reid Vapor Pressure of 7.0 psi. In no event shall
such approval by the Administrator cause an increase in the
total number of fuels on the list published under subclause
(II).
``(VI) Nothing in this clause shall be construed to have
any effect regarding any available authority of States to
require the use of any fuel additive registered in accordance
with subsection (b), including any fuel additive registered
in accordance with subsection (b) after the enactment of this
subclause.''.
(c) Study and Report to Congress on Boutique Fuels.--
(1) Joint study.--The Administrator of the Environmental
Protection Agency and the Secretary of Energy shall undertake
a study of the effects on air quality, on the number of fuel
blends, on fuel availability, on fuel fungibility, and on
fuel costs of the State plan provisions adopted pursuant to
section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)).
(2) Focus of study.--The primary focus of the study
required under paragraph (1) shall be to determine how to
develop a Federal fuels system that maximizes motor fuel
fungibility and supply, preserves air quality standards, and
reduces motor fuel price volatility that results from the
proliferation of boutique fuels, and to recommend to Congress
such legislative changes as are necessary to implement such a
system. The study should include the impacts on overall
energy supply, distribution, and use as a result of the
legislative changes recommended.
(3) Responsibility of administrator.--In carrying out the
study required by this section, the Administrator shall
coordinate obtaining comments from affected parties
interested in the air quality impact assessment portion of
the study. The Administrator shall use sound and objective
science practices, shall consider the best available science,
and shall consider and include a description of the weight of
the scientific evidence.
(4) Responsibility of secretary.--In carrying out the study
required by this section, the Secretary shall coordinate
obtaining comments from affected parties interested in the
fuel availability, number of fuel blends, fuel fungibility
and fuel costs portion of the study.

[[Page H2296]]

(5) Report to congress.--The Administrator and the
Secretary jointly shall submit the results of the study
required by this section in a report to the Congress not
later than 12 months after the date of the enactment of this
Act, together with any recommended regulatory and legislative
changes. Such report shall be submitted to the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Environment and Public Works of the Senate.
(6) Authorization of appropriations.--There is authorized
to be appropriated jointly to the Administrator and the
Secretary $500,000 for the completion of the study required
under this subsection.
(d) Definitions.--In this section:
(1) The term ``Administrator'' means the Administrator of
the Environmental Protection Agency.
(2) The term ``Secretary'' means the Secretary of Energy.
(3) The term ``fuel'' means gasoline, diesel fuel, and any
other liquid petroleum product commercially known as gasoline
and diesel fuel for use in highway and nonroad motor
vehicles.
(4) The term ``a control or prohibition respecting a new
fuel'' means a control or prohibition on the formulation,
composition, or emissions characteristics of a fuel that
would require the increase or decrease of a constituent in
gasoline or diesel fuel.

TITLE XVI--STUDIES

SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS
STORAGE.

(a) Definition.--For purposes of this section ``petroleum''
means crude oil, motor gasoline, jet fuel, distillates, and
propane.
(b) Study.--The Secretary of Energy shall conduct a study
on petroleum and natural gas storage capacity and operational
inventory levels, nationwide and by major geographical
regions.
(c) Contents.--The study shall address--
(1) historical normal ranges for petroleum and natural gas
inventory levels;
(2) historical and projected storage capacity trends;
(3) estimated operation inventory levels below which
outages, delivery slowdown, rationing, interruptions in
service, or other indicators of shortage begin to appear;
(4) explanations for inventory levels dropping below normal
ranges; and
(5) the ability of industry to meet United States demand
for petroleum and natural gas without shortages or price
spikes, when inventory levels are below normal ranges.
(d) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Energy shall
submit a report to Congress on the results of the study,
including findings and any recommendations for preventing
future supply shortages.

SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS.

The Secretary of Energy shall contract with the National
Academy of Sciences for a study, to be completed within 1
year after the date of enactment of this Act, to examine
whether the goals of energy efficiency standards are best
served by measurement of energy consumed, and efficiency
improvements, at the actual site of energy consumption, or
through the full fuel cycle, beginning at the source of
energy production. The Secretary shall submit the report to
Congress.

SEC. 1606. TELECOMMUTING STUDY.

(a) Study Required.--The Secretary, in consultation with
the Commission, the Director of the Office of Personnel
Management, the Administrator of General Services, and the
Administrator of NTIA, shall conduct a study of the energy
conservation implications of the widespread adoption of
telecommuting by Federal employees in the United States.
(b) Required Subjects of Study.--The study required by
subsection (a) shall analyze the following subjects in
relation to the energy saving potential of telecommuting by
Federal employees:
(1) Reductions of energy use and energy costs in commuting
and regular office heating, cooling, and other operations.
(2) Other energy reductions accomplished by telecommuting.
(3) Existing regulatory barriers that hamper telecommuting,
including barriers to broadband telecommunications services
deployment.
(4) Collateral benefits to the environment, family life,
and other values.
(c) Report Required.--The Secretary shall submit to the
President and Congress a report on the study required by this
section not later than 6 months after the date of enactment
of this Act. Such report shall include a description of the
results of the analysis of each of the subject described in
subsection (b).
(d) Definitions.--As used in this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration of the
Department of Commerce.
(4) Telecommuting.--The term ``telecommuting'' means the
performance of work functions using communications
technologies, thereby eliminating or substantially reducing
the need to commute to and from traditional worksites.
(5) Federal employee.--The term ``Federal employee'' has
the meaning provided the term ``employee'' by section 2105 of
title 5, United States Code.

SEC. 1607. LIHEAP REPORT.

Not later than 1 year after the date of enactment of this
Act, the Secretary of Health and Human Services shall
transmit to Congress a report on how the Low-Income Home
Energy Assistance Program could be used more effectively to
prevent loss of life from extreme temperatures. In preparing
such report, the Secretary shall consult with appropriate
officials in all 50 States and the District of Columbia.

SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY.

The Secretary of Energy and the Administrator of the
Environmental Protection Agency shall--
(1) conduct a joint study of the benefits of oil bypass
filtration technology in reducing demand for oil and
protecting the environment;
(2) examine the feasibility of using oil bypass filtration
technology in Federal motor vehicle fleets; and
(3) include in such study, prior to any determination of
the feasibility of using oil bypass filtration technology,
the evaluation of products and various manufacturers.

SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS.

The Secretary of Energy shall--
(1) conduct a study of the benefits of total integrated
thermal systems in reducing demand for oil and protecting the
environment; and
(2) examine the feasibility of using total integrated
thermal systems in Department of Defense and other Federal
motor vehicle fleets.

SEC. 1610. UNIVERSITY COLLABORATION.

Not later than 2 years after the date of enactment of this
Act, the Secretary of Energy shall transmit to Congress a
report that examines the feasibility of promoting
collaborations between large institutions of higher education
and small institutions of higher education through grants,
contracts, and cooperative agreements made by the Secretary
for energy projects. The Secretary shall also consider
providing incentives for the inclusion of small institutions
of higher education, including minority-serving institutions,
in energy research grants, contracts, and cooperative
agreements.

SEC. 1611. RELIABILITY AND CONSUMER PROTECTION ASSESSMENT.

Not later than 5 years after the date of enactment of this
Act, and each 5 years thereafter, the Federal Energy
Regulatory Commission shall assess the effects of the
exemption of electric cooperatives and government-owned
utilities from Commission regulation under section 201(f) of
the Federal Power Act. The assessment shall include any
effects on--
(1) reliability of interstate electric transmission
networks;
(2) benefit to consumers, and efficiency, of competitive
wholesale electricity markets;
(3) just and reasonable rates for electricity consumers;
and
(4) the ability of the Commission to protect electricity
consumers.

If the Commission finds that the 201(f) exemption results in
adverse effects on consumers or electric reliability, the
Commission shall make appropriate recommendations to Congress
pursuant to section 311 of the Federal Power Act.

SEC. 1612. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.

The Secretary of Energy shall submit an annual report to
the Committee on Energy and Commerce of the United States
House of Representatives and to the Committee on Energy and
Natural Resources of the United States Senate concerning the
status of energy export development in Latin America and
efforts by the Secretary and other departments and agencies
of the United States to promote energy integration with Latin
America. The report shall contain a detailed analysis of the
status of energy export development in Mexico and a
description of all significant efforts by the Secretary and
other departments and agencies to promote a constructive
relationship with Mexico regarding the development of that
nation's energy capacity. In particular this report shall
outline efforts the Secretary and other departments and
agencies have made to ensure that regulatory approval and
oversight of United States/Mexico border projects that result
in the expansion of Mexican energy capacity are effectively
coordinated across departments and with the Mexican
government.

SEC. 1613. LOW-VOLUME GAS RESERVOIR STUDY.

(a) Study.--The Secretary of Energy shall make a grant to
an organization of oil and gas producing States, specifically
those containing significant numbers of marginal oil and
natural gas wells, for conducting an annual study of low-
volume natural gas reservoirs. Such organization shall work
with the State geologist of each State being studied.
(b) Contents.--The studies under this section shall--
(1) determine the status and location of marginal wells and
gas reservoirs;
(2) gather the production information of these marginal
wells and reservoirs;
(3) estimate the remaining producible reserves based on
variable pipeline pressures;
(4) locate low-pressure gathering facilities and pipelines;
(5) recommend incentives which will enable the continued
production of these resources;

[[Page H2297]]

(6) produce maps and literature to disseminate to States to
promote conservation of natural gas reserves; and
(7) evaluate the amount of natural gas that is being wasted
through the practice of venting or flaring of natural gas
produced in association with crude oil well production.
(c) Data Analysis.--Data development and analysis under
this section shall be performed by an institution of higher
education with GIS capabilities. If the organization
receiving the grant under subsection (a) does not have GIS
capabilities, such organization shall contract with one or
more entities with--
(1) technological capabilities and resources to perform
advanced image processing, GIS programming, and data
analysis; and
(2) the ability to--
(A) process remotely sensed imagery with high spatial
resolution;
(B) deploy global positioning systems;
(C) process and synthesize existing, variable-format gas
well, pipeline, gathering facility, and reservoir data;
(D) create and query GIS databases with infrastructure
location and attribute information;
(E) write computer programs to customize relevant GIS
software;
(F) generate maps, charts, and graphs which summarize
findings from data research for presentation to different
audiences; and
(G) deliver data in a variety of formats, including
Internet Map Server for query and display, desktop computer
display, and access through handheld personal digital
assistants.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this section--
(1) $1,500,000 for fiscal year 2006; and
(2) $450,000 for each of the fiscal years 2007 through
2010.
(e) Definitions.--For purposes of this section, the term
``GIS'' means geographic information systems technology that
facilitates the organization and management of data with a
geographic component.

TITLE XVII--RENEWABLE ENERGY

SEC. 1701. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST
BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, PETROLEUM-BASED PRODUCT
SUBSTITUTES, AND OTHER COMMERCIAL PURPOSES.

(a) Findings.--Congress finds the following:
(1) Thousands of communities in the United States, many
located near Federal lands, are at risk to wildfire.
Approximately 190,000,000 acres of land managed by the
Secretary of Agriculture and the Secretary of the Interior
are at risk of catastrophic fire in the near future. The
accumulation of heavy forest fuel loads continues to increase
as a result of disease, insect infestations, and drought,
further raising the risk of fire each year.
(2) In addition, more than 70,000,000 acres across all land
ownerships are at risk to higher than normal mortality over
the next 15 years from insect infestation and disease. High
levels of tree mortality from insects and disease result in
increased fire risk, loss of old growth, degraded watershed
conditions, and changes in species diversity and
productivity, as well as diminished fish and wildlife habitat
and decreased timber values.
(3) Preventive treatments such as removing fuel loading,
ladder fuels, and hazard trees, planting proper species mix
and restoring and protecting early successional habitat, and
other specific restoration treatments designed to reduce the
susceptibility of forest land, woodland, and rangeland to
insect outbreaks, disease, and catastrophic fire present the
greatest opportunity for long-term forest health by creating
a mosaic of species-mix and age distribution. Such prevention
treatments are widely acknowledged to be more successful and
cost effective than suppression treatments in the case of
insects, disease, and fire.
(4) The byproducts of preventive treatment (wood, brush,
thinnings, chips, slash, and other hazardous fuels) removed
from forest lands, woodlands and rangelands represent an
abundant supply of biomass for biomass-to-energy facilities
and raw material for business. There are currently few
markets for the extraordinary volumes of byproducts being
generated as a result of the necessary large-scale preventive
treatment activities.
(5) The United States should--
(A) promote economic and entrepreneurial opportunities in
using byproducts removed through preventive treatment
activities related to hazardous fuels reduction, disease, and
insect infestation; and
(B) develop and expand markets for traditionally underused
wood and biomass as an outlet for byproducts of preventive
treatment activities.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means trees and woody
plants, including limbs, tops, needles, and other woody
parts, and byproducts of preventive treatment, such as wood,
brush, thinnings, chips, and slash, that are removed--
(A) to reduce hazardous fuels; or
(B) to reduce the risk of or to contain disease or insect
infestation.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).
(3) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary concerned);
(C) an Indian tribe;
(D) a small business, micro-business, or a corporation that
is incorporated in the United States; and
(E) a nonprofit organization.
(4) Preferred community.--The term ``preferred community''
means--
(A) any town, township, municipality, or other similar unit
of local government (as determined by the Secretary
concerned) that--
(i) has a population of not more than 50,000 individuals;
and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation; or
(B) any county that--
(i) is not contained within a metropolitan statistical
area; and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation.
(5) Secretary concerned.--The term ``Secretary concerned''
means the Secretary of Agriculture or the Secretary of the
Interior.
(c) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
any person that owns or operates a facility that uses biomass
as a raw material to produce electric energy, sensible heat,
transportation fuels, or substitutes for petroleum-based
products to offset the costs incurred to purchase biomass for
use by such facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant
recipient shall keep such records as the Secretary concerned
may require to fully and correctly disclose the use of the
grant funds and all transactions involved in the purchase of
biomass. Upon notice by a representative of the Secretary
concerned, the grant recipient shall afford the
representative reasonable access to the facility that
purchases or uses biomass and an opportunity to examine the
inventory and records of the facility.
(d) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
persons to offset the cost of projects to develop or research
opportunities to improve the use of, or add value to,
biomass. In making such grants, the Secretary concerned shall
give preference to persons in preferred communities.
(2) Selection.--The Secretary concerned shall select a
grant recipient under paragraph (1) after giving
consideration to the anticipated public benefits of the
project, including the potential to develop thermal or
electric energy resources or affordable energy, opportunities
for the creation or expansion of small businesses and micro-
businesses, and the potential for new job creation.
(3) Grant amount.--A grant under this subsection may not
exceed $500,000.
(e) Authorization of Appropriations.--There are authorized
to be appropriated $50,000,000 for each of the fiscal years
2006 through 2016 to carry out this section.
(f) Report.--Not later than October 1, 2010, the Secretary
of Agriculture, in consultation with the Secretary of the
Interior, shall submit to the Committee on Energy and Natural
Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Resources, the
Committee on Energy and Commerce, and the Committee on
Agriculture of the House of Representatives a report
describing the results of the grant programs authorized by
this section. The report shall include the following:
(1) An identification of the size, type, and the use of
biomass by persons that receive grants under this section.
(2) The distance between the land from which the biomass
was removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations.

SEC. 1702. ENVIRONMENTAL REVIEW FOR RENEWABLE ENERGY
PROJECTS.

(a) Compliance With NEPA for Renewable Energy Projects.--
Notwithstanding any other law, in preparing an environmental
assessment or environmental impact statement required under
section 102 of the National Environmental Policy Act of 1969
(42 U.S.C. 4332) with respect to any action authorizing a
renewable energy project under the jurisdiction of a Federal
agency--
(1) no Federal agency is required to identify alternative
project locations or actions other than the proposed action
and the no action alternative; and
(2) no Federal agency is required to analyze the
environmental effects of alternative locations or actions
other than those submitted by the project proponent.
(b) Consideration of Alternatives.--In any environmental
assessment or environmental impact statement referred to in
subsection (a), the Federal agency shall only

[[Page H2298]]

identify and analyze the environmental effects and potential
mitigation measures of--
(1) the proposed action; and
(2) the no action alternative.
(c) Public Comment.--In preparing an environmental
assessment or environmental impact statement referred to in
subsection (a), the Federal agency shall only consider public
comments that specifically address the preferred action and
that are filed within 20 days after publication of a draft
environmental assessment or draft environmental impact
statement. Notwithstanding any other law, compliance with
this subsection is deemed to satisfy section 102(2) of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2))
and the applicable regulations and administrative guidelines
with respect to proposed renewable energy projects.
(d) Renewable Energy Project Defined.--For purposes of this
section, the term ``renewable energy project''--
(1) means any proposal to utilize an energy source other
than nuclear power, coal, oil, or natural gas; and
(2) includes the use of wind, solar, geothermal, biomass,
or tidal forces to generate energy.

SEC. 1703. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF
ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON
PUBLIC LANDS.

It is the sense of the Congress that the Secretary of the
Interior should, before the end of the 10-year period
beginning on the date of enactment of this Act, seek to have
approved non-hydropower renewable energy projects located on
the public lands with a generation capacity of at least
10,000 megawatts of electricity.

TITLE XVIII--GEOTHERMAL ENERGY

SEC. 1801. SHORT TITLE.

This title may be cited as the ``John Rishel Geothermal
Steam Act Amendments of 2005''.

SEC. 1802. COMPETITIVE LEASE SALE REQUIREMENTS.

Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C.
1003) is amended to read as follows:

``SEC. 4. LEASING PROCEDURES.

``(a) Nominations.--The Secretary shall accept nominations
of lands available for leasing at any time from qualified
companies and individuals under this Act.
``(b) Competitive Lease Sale Required.--The Secretary shall
hold a competitive lease sale at least once every 2 years for
lands in a State which has nominations pending under
subsection (a) if such lands are otherwise available for
leasing. Lands that are subject to a mining claim for which a
plan of operations has been approved by the relevant Federal
land management agency are not available for competitive
leasing.
``(c) Noncompetitive Leasing.--
``(1) Requirement.--The Secretary shall make available for
a period of 2 years for noncompetitive leasing any tract for
which a competitive lease sale is held, but for which the
Secretary does not receive any bids in a competitive lease
sale.
``(2) States without nominations.--In any State for which
there are no nominations received under subsection (a) and
having a total acreage under lease or the subject of an
application for lease of less than 10,000 acres, the
Secretary may designate lands available for 2 years for
noncompetitive leasing.
``(d) Leases Sold as a Block.--If information is available
to the Secretary indicating a geothermal resource that could
be produced as 1 unit can reasonably be expected to underlie
more than 1 parcel to be offered in a competitive lease sale,
the parcels for such a resource may be offered for bidding as
a block in the competitive lease sale.
``(e) Area Subject to Lease for Geothermal Resources.--A
geothermal lease for the use of geothermal resources shall
embrace not more than the amount of acreage determined by the
Secretary to be appropriate.''.

SEC. 1803. DIRECT USE.

(a) Fees for Direct Use.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is amended--
(1) in paragraph (c) by redesignating subparagraphs (1) and
(2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d) in order as
paragraphs (1) through (4);
(3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
and
(4) by adding at the end the following:
``(b) Fees for Direct Use.--
``(1) In general.--Notwithstanding subsection (a)(1), with
respect to the direct use of geothermal resources for
purposes other than the commercial generation of electricity,
the Secretary of the Interior shall establish a schedule of
fees and collect fees pursuant to such a schedule in lieu of
royalties. Notwithstanding section 102(a)(9) of the Federal
Land Policy and Management Act of 1976 (43 U.S.C.
1701(a)(9)), the schedule of fees shall be based upon
comparable non-Federal fees charged for direct use of
geothermal resources within the State concerned. For direct
use by a State or local government for public purposes, the
fee charged shall be nominal. Leases in existence on the date
of enactment of this subsection shall be modified in order to
reflect the provisions of this subsection.
``(2) Final regulation.--In issuing any final regulation
establishing a schedule of fees under this subsection, the
Secretary shall seek--
``(A) to provide lessees with a simplified administrative
system;
``(B) to encourage development of this underutilized energy
resource on the Federal estate; and
``(C) to contribute to sustainable economic development
opportunities for host communities.''.
(b) Leasing for Direct Use.--Section 4 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1003) is further amended by
adding at the end the following:
``(f) Leasing for Direct Use of Geothermal Resources.--
Lands leased under this Act exclusively for direct use of
geothermal resources shall be leased to any qualified
applicant who first applies for such a lease under
regulations issued by the Secretary, if--
``(1) the Secretary publishes a notice of the lands
proposed for leasing 60 days before the date of the issuance
of the lease; and
``(2) the Secretary does not receive in the 60-day period
beginning on the date of such publication any nomination to
include the lands concerned in the next competitive lease
sale.
``(g) Area Subject to Lease for Direct Use.--A geothermal
lease for the direct use of geothermal resources shall
embrace not more than the amount of acreage determined by the
Secretary to be reasonably necessary for such proposed
utilization.''.
(c) Existing Leases With a Direct Use Facility.--
(1) Application to convert.--Any lessee under a lease under
the Geothermal Steam Act of 1970 that was issued before the
date of enactment of this Act may apply to the Secretary of
the Interior, by not later than 18 months after the date of
enactment of this Act, to convert such lease to a lease for
direct utilization of geothermal resources in accordance with
the amendments made by this section.
(2) Conversion.--The Secretary shall approve such an
application and convert such a lease to a lease in accordance
with the amendments by not later than 180 days after receipt
of such application, unless the Secretary determines that the
applicant is not a qualified applicant with respect to the
lease.
(3) Application of new lease terms.--The schedule of fees
established under the amendment made by subsection (a)(4)
shall apply with respect to payments under a lease converted
under this subsection that are due and owing to the United
States on or after July 16, 2003.

SEC. 1804. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.

(a) Royalty.--Section 5 of the Geothermal Steam Act of 1970
(30 U.S.C. 1004) is further amended--
(1) in subsection (a) by striking paragraph (1) and
inserting the following:
``(1) a royalty on electricity produced using geothermal
resources, other than direct use of geothermal resources,
that shall be--
``(A) not less than 1 percent and not more than 2.5 percent
of the gross proceeds from the sale of electricity produced
from such resources during the first 10 years of production
under the lease; and
``(B) not less than 2 and not more than 5 percent of the
gross proceeds from the sale of electricity produced from
such resources during each year after such 10-year period;'';
and
(2) by adding at the end the following:
``(c) Final Regulation Establishing Royalty Rates.--In
issuing any final regulation establishing royalty rates under
this section, the Secretary shall seek--
``(1) to provide lessees a simplified administrative
system;
``(2) to encourage new development;
``(3) to achieve the same long-term level of royalty
revenues to States and counties as the regulation in effect
on the date of enactment of this subsection; and
``(4) to reflect any change in profitability of operations
for which royalties will be paid due to the requirements
imposed by Federal agencies, including delays.
``(d) Credits for In-Kind Payments of Electricity.--The
Secretary may provide to a lessee a credit against royalties
owed under this Act, in an amount equal to the value of
electricity provided under contract to a State or county
government that is entitled to a portion of such royalties
under section 20 of this Act, section 35 of the Mineral
Leasing Act (30 U.S.C. 191), or section 6 of the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 355), if--
``(1) the Secretary has approved in advance the contract
between the lessee and the State or county government for
such in-kind payments;
``(2) the contract establishes a specific methodology to
determine the value of such credits; and
``(3) the maximum credit will be equal to the royalty value
owed to the State or county that is a party to the contract
and the electricity received will serve as the royalty
payment from the Federal Government to that entity.''.
(b) Disposal of Moneys From Sales, Bonuses, Royalties, and
Rents.--Section 20 of the Geothermal Steam Act of 1970 (30
U.S.C. 1019) is amended to read as follows:

``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS,
AND ROYALTIES.

``(a) In General.--Except with respect to lands in the
State of Alaska, all monies received by the United States
from sales, bonuses, rentals, and royalties under this Act
shall be paid into the Treasury of the United States. Of
amounts deposited under this subsection, subject to the
provisions of section

[[Page H2299]]

35 of the Mineral Leasing Act (30 U.S.C. 191(b)) and section
5(a)(2) of this Act--
``(1) 50 percent shall be paid to the State within the
boundaries of which the leased lands or geothermal resources
are or were located; and
``(2) 25 percent shall be paid to the County within the
boundaries of which the leased lands or geothermal resources
are or were located.
``(b) Use of Payments.--Amounts paid to a State or county
under subsection (a) shall be used consistent with the terms
of section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
(c) Near-Term Production Incentive for Existing Leases.--
(1) In general.--Notwithstanding section 5(a) of the
Geothermal Steam Act of 1970, the royalty required to be paid
shall be 50 percent of the amount of the royalty otherwise
required, on any lease issued before the date of enactment of
this Act that does not convert to new royalty terms under
subsection (e)--
(A) with respect to commercial production of energy from a
facility that begins such production in the 6-year period
beginning on the date of enactment of this Act; or
(B) on qualified expansion geothermal energy.
(2) 4-year application.--Paragraph (1) applies only to new
commercial production of energy from a facility in the first
4 years of such production.
(d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal
energy'' means geothermal energy produced from a generation
facility for which--
(1) the production is increased by more than 10 percent as
a result of expansion of the facility carried out in the 6-
year period beginning on the date of enactment of this Act;
and
(2) such production increase is greater than 10 percent of
the average production by the facility during the 5-year
period preceding the expansion of the facility (as such
average is adjusted to reflect any trend, in changes in
production during that period).
(e) Royalty Under Existing Leases.--
(1) In general.--Any lessee under a lease issued under the
Geothermal Steam Act of 1970 before the date of enactment of
this Act may modify the terms of the lease relating to
payment of royalties to comply with the amendment made by
subsection (a), by applying to the Secretary of the Interior
by not later than 18 months after the date of enactment of
this Act.
(2) Application of modification.--Such modification shall
apply to any use of geothermal resources to which the
amendment applies that occurs after the date of that
application.
(3) Consultation.--The Secretary--
(A) shall consult with the State and local governments
affected by any proposed changes in lease royalty terms under
this subsection; and
(B) may establish royalty based on a gross proceeds
percentage within the range specified in the amendment made
by subsection (a)(1) and with the concurrence of the lessee
and the State.

SEC. 1805. EXPEDITING ADMINISTRATIVE ACTION FOR GEOTHERMAL
LEASING.

(a) Treatment of Geothermal Leasing With Respect to Federal
Land Management Plan Requirements.--Section 15 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1014) is amended by
adding at the end the following:
``(d) Treatment of Geothermal Leasing Under Federal Land
Management Plans.--Geothermal leasing and development of
Federal lands in accordance with this Act is deemed to be
consistent with the management of National Forest System
lands under section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604) and public
lands under section 202 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1712). Land and resource
management plans and land use plans in effect under such
sections on the date of the enactment of this subsection are
deemed to be adequate to proceed with the issuance of leases
under this Act.''.
(b) Lease Applications Pending on January 1, 2005.--
(1) Priority.--It shall be a priority for the Secretary of
the Interior, and for the Secretary of Agriculture with
respect to National Forest Systems lands, to ensure timely
completion of administrative actions necessary to process
applications for geothermal leasing pending on January 1,
2005.
(2) Applicable law.--An application referred to in
paragraph (1), and any lease issued pursuant to such an
application--
(A) except as provided in subparagraph (B), shall be
subject to this section as in effect on January 1, 2005; or
(B) at the election of the applicant, shall be subject to
this section as in effect on the effective date of this
paragraph.

SEC. 1806. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING
ON FEDERAL LANDS.

(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of the Interior and
the Secretary of Agriculture shall enter into and submit to
Congress a memorandum of understanding in accordance with
this section, the Geothermal Steam Act of 1970 (as amended by
this Act), and other applicable laws, regarding coordination
of leasing and permitting for geothermal development of
public lands and National Forest System lands under their
respective jurisdictions.
(b) Lease and Permit Applications.--The memorandum of
understanding shall--
(1) establish an administrative procedure for processing
geothermal lease applications, including lines of authority,
steps in application processing, and time limits for
application procession;
(2) establish a 5-year program for geothermal leasing of
lands in the National Forest System, and a process for
updating that program every 5 years; and
(3) establish a program for reducing the backlog of
geothermal lease application pending on January 1, 2005, by
90 percent within the 5-year period beginning on the date of
enactment of this Act, including, as necessary, by--
(A) issuing leases, rejecting lease applications for
failure to comply with the provisions of the regulations
under which they were filed, or determining that an original
applicant (or the applicant's assigns, heirs, or estate) is
no longer interested in pursuing the lease application;
(B) making diligent efforts to directly contact the lease
applicants (including their heirs, assigns, or estates); and
(C) ensuring that no lease application is rejected except
in compliance with all requirements regarding diligent direct
contact.
(c) Data Retrieval System.--The memorandum of understanding
shall establish a joint data retrieval system that is capable
of tracking lease and permit applications and providing to
the applicant information as to their status within the
Departments of the Interior and Agriculture, including an
estimate of the time required for administrative action.

SEC. 1807. REVIEW AND REPORT TO CONGRESS.

The Secretary of the Interior shall promptly review and
report to Congress not later than 3 years after the date of
enactment of this Act regarding the status of all withdrawals
from leasing under the Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.) of Federal lands, specifying for each
such area whether the basis for such withdrawal still
applies.

SEC. 1808. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES,
DOCUMENTATION, AND STUDIES.

(a) In General.--The Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.) is amended by adding at the end the
following:

``SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES,
DOCUMENTATION, AND STUDIES.

``(a) In General.--The Secretary of the Interior shall
issue regulations under which the Secretary shall reimburse a
person that is a lessee, operator, operating rights owner, or
applicant for any lease under this Act for reasonable amounts
paid by the person for preparation for the Secretary by a
contractor or other person selected by the Secretary of any
project-level analysis, documentation, or related study
required pursuant to the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) with respect to the lease.
``(b) Conditions.--The Secretary may provide reimbursement
under subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily;
``(3) the person maintains records of its costs in
accordance with regulations issued by the Secretary;
``(4) the reimbursement is in the form of a reduction in
the Federal share of the royalty required to be paid for the
lease for which the analysis, documentation, or related study
is conducted, and is agreed to by the Secretary and the
person reimbursed prior to commencing the analysis,
documentation, or related study; and
``(5) the agreement required under paragraph (4) contains
provisions--
``(A) reducing royalties owed on lease production based on
market prices;
``(B) stipulating an automatic termination of the royalty
reduction upon recovery of documented costs; and
``(C) providing a process by which the lessee may seek
reimbursement for circumstances in which production from the
specified lease is not possible.''.
(b) Application.--The amendment made by this section shall
apply with respect to an analysis, documentation, or a
related study conducted on or after the date of enactment of
this Act for any lease entered into before, on, or after the
date of enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendment made by this section
by not later than 1 year after the date of enactment of this
Act.

SEC. 1809. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

The Secretary of Interior, acting through the Director of
the United States Geological Survey and in cooperation with
the States, shall update the 1978 Assessment of Geothermal
Resources, and submit that updated assessment to Congress--
(1) not later than 3 years after the date of enactment of
this Act; and
(2) thereafter as the availability of data and developments
in technology warrant.

SEC. 1810. COOPERATIVE OR UNIT PLANS.

Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C.
1017) is amended to read as follows:

``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

``(a) Adoption of Units by Lessees.--

[[Page H2300]]

``(1) In general.--For the purpose of more properly
conserving the natural resources of any geothermal reservoir,
field, or like area, or any part thereof (whether or not any
part of the geothermal field, or like area, is then subject
to any Unit Agreement (cooperative plan of development or
operation)), lessees thereof and their representatives may
unite with each other, or jointly or separately with others,
in collectively adopting and operating under a Unit Agreement
for such field, or like area, or any part thereof including
direct use resources, if determined and certified by the
Secretary to be necessary or advisable in the public
interest. A majority interest of lessees under any single
lease shall have the authority to commit that lease to a Unit
Agreement. The Secretary of the Interior may also initiate
the formation of a Unit Agreement, if such action is in the
public interest.
``(2) Modification of lease requirements by secretary.--The
Secretary may, in the discretion of the Secretary, and with
the consent of the holders of leases involved, establish,
alter, change, or revoke rates of operations (including
drilling, operations, production, and other requirements) of
such leases and make conditions with reference to such
leases, with the consent of the lessees, in connection with
the creation and operation of any such Unit Agreement as the
Secretary may deem necessary or proper to secure the proper
protection of the public interest. Leases with unlike lease
terms or royalty rates do not need to be modified to be in
the same unit.
``(b) Requirement of Plans Under New Leases.--The
Secretary--
``(1) may provide that geothermal leases issued under this
Act shall contain a provision requiring the lessee to operate
under such a reasonable Unit Agreement; and
``(2) may prescribe such an Agreement under which such
lessee shall operate, which shall adequately protect the
rights of all parties in interest, including the United
States.
``(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any Agreement
authorized by this section that applies to lands owned by the
United States contain a provision under which authority is
vested in the Secretary, or any person, committee, or State
or Federal officer or agency as may be designated in the
Agreement to alter or modify from time to time the rate of
prospecting and development and the quantity and rate of
production under such an Agreement.
``(d) Exclusion From Determination of Holding or Control.--
Any lands that are subject to any Agreement approved or
prescribed by the Secretary under this section shall not be
considered in determining holdings or control under any
provision of this Act.
``(e) Pooling of Certain Lands.--If separate tracts of
lands cannot be independently developed and operated to use
geothermal resources pursuant to any section of this Act--
``(1) such lands, or a portion thereof, may be pooled with
other lands, whether or not owned by the United States, for
purposes of development and operation under a Communitization
Agreement providing for an apportionment of production or
royalties among the separate tracts of land comprising the
production unit, if such pooling is determined by the
Secretary to be in the public interest; and
``(2) operation or production pursuant to such an Agreement
shall be treated as operation or production with respect to
each tract of land that is subject to the agreement.
``(f) Unit Agreement Review.--No more than 5 years after
approval of any cooperative or Unit Agreement and at least
every 5 years thereafter, the Secretary shall review each
such Agreement and, after notice and opportunity for comment,
eliminate from inclusion in such Agreement any lands that the
Secretary determines are not reasonably necessary for Unit
operations under the Agreement. Such elimination shall be
based on scientific evidence, and shall occur only if it is
determined by the Secretary to be for the purpose of
conserving and properly managing the geothermal resource. Any
land so eliminated shall be eligible for an extension under
subsection (g) of section 6 if it meets the requirements for
such an extension.
``(g) Drilling or Development Contracts.--The Secretary
may, on such conditions as the Secretary may prescribe,
approve drilling or development contracts made by 1 or more
lessees of geothermal leases, with 1 or more persons,
associations, or corporations if, in the discretion of the
Secretary, the conservation of natural resources or the
public convenience or necessity may require or the interests
of the United States may be best served thereby. All leases
operated under such approved drilling or development
contracts, and interests thereunder, shall be excepted in
determining holdings or control under section 7.
``(h) Coordination With State Governments.--The Secretary
shall coordinate unitization and pooling activities with the
appropriate State agencies and shall ensure that State leases
included in any unitization or pooling arrangement are
treated equally with Federal leases.''.

SEC. 1811. ROYALTY ON BYPRODUCTS.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended in subsection (a) by striking
paragraph (2) and inserting the following:
``(2) a royalty on any byproduct that is a mineral named in
the first section of the Mineral Leasing Act (30 U.S.C. 181),
and that is derived from production under the lease, at the
rate of the royalty that applies under that Act to production
of such mineral under a lease under that Act;''.

SEC. 1812. REPEAL OF AUTHORITIES OF SECRETARY TO READJUST
TERMS, CONDITIONS, RENTALS, AND ROYALTIES.

Section 8 of the Geothermal Steam Act of 1970 (30 U.S.C.
1007) is amended by repealing subsection (b), and by
redesignating subsection (c) as subsection (b).

SEC. 1813. CREDITING OF RENTAL TOWARD ROYALTY.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended--
(1) in subsection (a)(2) by inserting ``and'' after the
semicolon at the end;
(2) in subsection (a)(3) by striking ``; and'' and
inserting a period;
(3) by striking paragraph (4) of subsection (a); and
(4) by adding at the end the following:
``(e) Crediting of Rental Toward Royalty.--Any annual
rental under this section that is paid with respect to a
lease before the first day of the year for which the annual
rental is owed shall be credited to the amount of royalty
that is required to be paid under the lease for that year.''.

SEC. 1814. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C.
1005) is amended--
(1) by striking so much as precedes subsection (c), and
striking subsections (e), (g), (h), (i), and (j);
(2) by redesignating subsections (c), (d), and (f) in order
as subsections (g), (h), and (i); and
(3) by inserting before subsection (g), as so redesignated,
the following:

``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

``(a) In General.--
``(1) Primary term.--A geothermal lease shall be for a
primary term of 10 years.
``(2) Initial extension.--The Secretary shall extend the
primary term of a geothermal lease for 5 years if, for each
year after the fifth year of the lease--
``(A) the Secretary determined under subsection (c) that
the lessee satisfied the work commitment requirements that
applied to the lease for that year; or
``(B) the lessee paid in accordance with subsection (d) the
value of any work that was not completed in accordance with
those requirements.
``(3) Additional extension.--The Secretary shall extend the
primary term of a geothermal lease (after an initial
extension under paragraph (2)) for an additional 5 years if,
for each year of the initial extension under paragraph (2),
the Secretary determined under subsection (c) that the lessee
satisfied the work commitment requirements that applied to
the lease for that year.
``(b) Requirement to Satisfy Annual Work Commitment
Requirement.--
``(1) In general.--The lessee for a geothermal lease shall,
for each year after the fifth year of the lease, satisfy work
commitment requirements prescribed by the Secretary that
apply to the lease for that year.
``(2) Prescription of work commitment requirements.--The
Secretary shall issue regulations prescribing minimum
equivalent dollar value work commitment requirements for
geothermal leases, that--
``(A) require that a lessee, in each year after the fifth
year of the primary term of a geothermal lease, diligently
work to achieve commercial utilization of geothermal
resources under the lease;
``(B) describe work that qualifies to meet these
requirements and factors, such as force majeure events, that
suspend or modify the work commitment obligation;
``(C) carry forward and apply to work commitment
requirements for a year, work completed in any year in the
preceding 3-year period that was in excess of the work
required to be performed in that preceding year;
``(D) establish transition rules for leases issued before
the date of the enactment of this subsection, including terms
under which a lease that is near the end of its term on the
date of enactment of this subsection may be extended for up
to 2 years--
``(i) to allow achievement of production under the lease;
or
``(ii) to allow the lease to be included in a producing
unit; and
``(E) establish an annual payment that, at the option of
the lessee, may be exercised in lieu of meeting any work
requirement for a limited number of years that the Secretary
determines will not impair achieving diligent development of
the geothermal resource.
``(3) Geothermal lease overlying mining claim.--
``(A) Exemption.--The lessee for a geothermal lease of an
area overlying an area subject to a mining claim for which a
plan of operations has been approved by the relevant Federal
land management agency is exempt from annual work
requirements established under this Act, if development of
the geothermal resource subject to the lease would interfere
with the mining operations under such claim.
``(B) Termination of exemption.--An exemption under this
paragraph expires upon the termination of the mining
operations.
``(4) Termination of application of requirements.--Work
commitment requirements prescribed under this subsection
shall not apply to a geothermal lease after the date on which
the geothermal resource is utilized under the lease in
commercial quantities.

[[Page H2301]]

``(c) Determination of Whether Requirements Satisfied.--The
Secretary shall, by not later than 90 days after the end of
each year for which work commitment requirements under
subsection (b) apply to a geothermal lease--
``(1) determine whether the lessee has satisfied the
requirements that apply for that year;
``(2) notify the lessee of that determination; and
``(3) in the case of a notification that the lessee did not
satisfy work commitment requirements for the year, include in
the notification--
``(A) a description of the specific work that was not
completed by the lessee in accordance with the requirements;
and
``(B) the amount of the dollar value of such work that was
not completed, reduced by the amount of expenditures made for
work completed in a prior year that is carried forward
pursuant to subsection (b)(2)(D).
``(d) Payment of Value of Uncompleted Work.--
``(1) In general.--If the Secretary notifies a lessee that
the lessee failed to satisfy work commitment requirements
under subsection (b), the lessee shall pay to the Secretary,
by not later than the end of the 60-day period beginning on
the date of the notification, the dollar value of work that
was not completed by the lessee, in the amount stated in the
notification (as reduced under subsection (c)(3)(B)).
``(2) Failure to pay value of uncompleted work.--If a
lessee fails to pay such amount to the Secretary before the
end of that period, the lease shall terminate upon the
expiration of the period.
``(e) Continuation During Commercial Utilization.--
``(1) In general.--If a geothermal resource that is subject
to a geothermal lease is utilized in commercial quantities
within the primary term of the lease under subsection (a)
(including any extension of the lease under subsection (a)),
such lease shall continue until the date on which the
geothermal resource is no longer utilized in commercial
quantities.
``(2) Continuation of associated leases.--If a geothermal
lease is for an area in which there is injected fluid or
steam from a nearby geothermal resource for the purpose of
maintaining commercial utilization of a geothermal resource,
such lease shall continue until such commercial utilization
is terminated.
``(f) Conversion of Geothermal Lease to Mineral Lease.--A
lessee under a lease for a geothermal resource that has been
utilized for commercial production of electricity, has been
determined by the Secretary to be incapable of any further
commercial utilization, and is producing any valuable
byproduct in payable quantities may, within 6 months after
such determination--
``(1) convert the lease to a mineral lease under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) or under the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et
seq.), if the lands that are subject to the lease can be
leased under that Act for the production of such byproduct;
or
``(2) convert the lease to a mining claim under the general
mining laws, if the byproduct is a locatable mineral.''.

SEC. 1815. ADVANCED ROYALTIES REQUIRED FOR SUSPENSION OF
PRODUCTION.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended by adding at the end the following:
``(f) Advanced Royalties Required for Suspension of
Production.--
``(1) Continuation of lease following cessation of
production.--If, at any time after commercial production
under a geothermal lease is achieved, production ceases for
any cause the lease shall remain in full force and effect--
``(A) during the 1-year period beginning on the date
production ceases; and
``(B) after such period if, and so long as, the lessee
commences and continues diligently and in good faith until
such production is resumed the steps, operations, or
procedures necessary to cause a resumption of such
production.
``(2) Advance royalties following suspension of
production.--If production of heat or energy under a
geothermal lease is suspended after the date of any such
production for which royalty is required under subsection (a)
and the terms of paragraph (1) are not met, the Secretary
shall require the lessee, until the end of such suspension,
to pay royalty in advance at the monthly pro rata rate of the
average annual rate at which such royalty was paid each year
in the 5-year-period preceding the date of suspension.
``(3) Limitation on application.--Paragraph (2) shall not
apply if the suspension is required or otherwise caused by
the Secretary, the Secretary of a military department, a
State or local government, or a force majeure.''.

SEC. 1816. ANNUAL RENTAL.

(a) Annual Rental Rate.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is further amended in subsection
(a) in paragraph (3) by striking ``$1 per acre or fraction
thereof for each year of the lease'' and all that follows
through the end of the paragraph and inserting ``$1 per acre
or fraction thereof for each year of the lease through the
tenth year in the case of a lease awarded in a noncompetitive
lease sale; or $2 per acre or fraction thereof for the first
year, $3 per acre or fraction thereof for each of the second
through tenth years, in the case of a lease awarded in a
competitive lease sale; and $5 per acre or fraction thereof
for each year after the 10th year thereof for all leases.''.
(b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended by adding at the end the following:
``(g) Termination of Lease for Failure to Pay Rental.--
``(1) In general.--The Secretary shall terminate any
geothermal lease with respect to which rental is not paid in
accordance with this Act and the terms of the lease under
which the rental is required, upon the expiration of the 45-
day period beginning on the date of the failure to pay such
rental.
``(2) Notification.--The Secretary shall promptly notify a
lessee that has not paid rental required under the lease that
the lease will be terminated at the end of the period
referred to in paragraph (1).
``(3) Reinstatement.--A geothermal lease that would
otherwise terminate under paragraph (1) shall not terminate
under that paragraph if the lessee pays to the Secretary,
before the end of the period referred to in paragraph (1),
the amount of rental due plus a late fee equal to 10 percent
of such amount.''.

SEC. 1817. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5
FISCAL YEARS.

(a) Deposit of Geothermal Resources Leases.--
Notwithstanding any other provision of law, amounts received
by the United States in the first 5 fiscal years beginning
after the date of enactment of this Act as rentals,
royalties, and other payments required under leases under the
Geothermal Steam Act of 1970, excluding funds required to be
paid to State and county governments, shall be deposited into
a separate account in the Treasury.
(b) Use of Deposits.--Subject to appropriations, the
Secretary may use amounts deposited under subsection (a) to
implement the Geothermal Steam Act of 1970 and this Act.

SEC. 1818. REPEAL OF ACREAGE LIMITATIONS.

Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C.
1006) is repealed.

SEC. 1819. TECHNICAL AMENDMENTS.

The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
is further amended as follows:
(1) By striking ``geothermal steam and associated
geothermal resources'' each place it appears and inserting
``geothermal resources''.
(2) Section 2(e) (30 U.S.C. 1001(e)) is amended to read as
follows:
``(e) `direct use' means utilization of geothermal
resources for commercial, residential, agricultural, public
facilities, off-grid generation of electricity, or other
energy needs other than the commercial production of
electricity; and''.
(3) Section 21 (30 U.S.C. 1020) is amended by striking
``(a) Within one hundred'' and all that follows through ``(b)
Geothermal'' and inserting ``Geothermal''.
(4) The first section (30 U.S.C. 1001 note) is amended by
striking ``That this'' and inserting the following:

``SEC. 1. SHORT TITLE.

``This''.
(5) Section 2 (30 U.S.C. 1001) is amended by striking
``Sec. 2. As'' and inserting the following:

``SEC. 2. DEFINITIONS.

``As''.
(6) Section 3 (30 U.S.C. 1002) is amended by striking
``Sec. 3. Subject'' and inserting the following:

``SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.

``Subject''.
(7) Section 5 (30 U.S.C. 1004) is further amended by
striking ``Sec. 5.'', and by inserting immediately before and
above subsection (a) the following:

``SEC. 5. RENTS AND ROYALTIES.''.

(8) Section 8 (30 U.S.C. 1007) is amended by striking
``Sec. 8. (a) The'' and inserting the following:

``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

``(a) The''.
(9) Section 9 (30 U.S.C. 1008) is amended by striking
``Sec. 9. If'' and inserting the following:

``SEC. 9. BYPRODUCTS.

``If''.
(10) Section 10 (30 U.S.C. 1009) is amended by striking
``Sec. 10. The'' and inserting the following:

``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

``The''.
(11) Section 11 (30 U.S.C. 1010) is amended by striking
``Sec. 11. The'' and inserting the following:

``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

``The''.
(12) Section 12 (30 U.S.C. 1011) is amended by striking
``Sec. 12. Leases'' and inserting the following:

``SEC. 12. TERMINATION OF LEASES.

``Leases''.
(13) Section 13 (30 U.S.C. 1012) is amended by striking
``Sec. 13. The'' and inserting the following:

``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR
ROYALTY.

``The''.
(14) Section 14 (30 U.S.C. 1013) is amended by striking
``Sec. 14. Subject'' and inserting the following:

[[Page H2302]]

``SEC. 14. SURFACE LAND USE.

``Subject''.
(15) Section 15 (30 U.S.C. 1014) is amended by striking
``Sec. 15. (a) Geothermal'' and inserting the following:

``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

``(a) Geothermal''.
(16) Section 16 (30 U.S.C. 1015) is amended by striking
``Sec. 16. Leases'' and inserting the following:

``SEC. 16. REQUIREMENT FOR LESSEES.

``Leases''.
(17) Section 17 (30 U.S.C. 1016) is amended by striking
``Sec. 17. Administration'' and inserting the following:

``SEC. 17. ADMINISTRATION.

``Administration''.
(18) Section 19 (30 U.S.C. 1018) is amended by striking
``Sec. 19. Upon'' and inserting the following:

``SEC. 19. DATA FROM FEDERAL AGENCIES.

``Upon''.
(19) Section 21 (30 U.S.C. 1020) is further amended by
striking ``Sec. 21.'', and by inserting immediately before
and above the remainder of that section the following:

``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF
MINERAL RIGHTS.''.

(20) Section 22 (30 U.S.C. 1021) is amended by striking
``Sec. 22. Nothing'' and inserting the following:

``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

``Nothing''.
(21) Section 23 (30 U.S.C. 1022) is amended by striking
``Sec. 23. (a) All'' and inserting the following:

``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

``(a) All''.
(22) Section 24 (30 U.S.C. 1023) is amended by striking
``Sec. 24. The'' and inserting the following:

``SEC. 24. RULES AND REGULATIONS.

``The''.
(23) Section 25 (30 U.S.C. 1024) is amended by striking
``Sec. 25. As'' and inserting the following:

``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN
OTHER LAWS.

``As''.
(24) Section 26 is amended by striking ``Sec. 26. The'' and
inserting the following:

``SEC. 26. AMENDMENT.

``The''.
(25) Section 27 (30 U.S.C. 1025) is amended by striking
``Sec. 27. The'' and inserting the following:

``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

``The''.
(26) Section 28 (30 U.S.C. 1026) is amended by striking
``Sec. 28. (a)(1) The'' and inserting the following:

``SEC. 28. SIGNIFICANT THERMAL FEATURES.

``(a)(1) The''.
(27) Section 29 (30 U.S.C. 1027) is amended by striking
``Sec. 29. The'' and inserting the following:

``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

``The''.

SEC. 1820. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

(a) Participation Authorized.--The Secretary of Energy,
acting through the Idaho National Laboratory, may participate
in a consortium described in subsection (b) to address
science and science policy issues surrounding the expanded
discovery and use of geothermal energy, including from
geothermal resources on public lands.
(b) Members.--The consortium referred to in subsection (a)
shall--
(1) be known as the ``Intermountain West Geothermal
Consortium'';
(2) be a regional consortium of institutions and government
agencies that focuses on building collaborative efforts among
the universities in the State of Idaho, other regional
universities, State agencies, and the Idaho National
Laboratory;
(3) include Boise State University, the University of Idaho
(including the Idaho Water Resources Research Institute), the
Oregon Institute of Technology, the Desert Research Institute
with the University and Community College System of Nevada,
and the Energy and Geoscience Institute at the University of
Utah;
(4) be hosted and managed by Boise State University; and
(5) have a director appointed by Boise State University,
and associate directors appointed by each participating
institution.
(c) Financial Assistance.--The Secretary of Energy, acting
through the Idaho National Laboratory and subject to the
availability of appropriations, will provide financial
assistance to Boise State University for expenditure under
contracts with members of the consortium to carry out the
activities of the consortium.

TITLE XIX--HYDROPOWER

SEC. 1901. INCREASED HYDROELECTRIC GENERATION AT EXISTING
FEDERAL FACILITIES.

(a) In General.--The Secretary of the Interior, the
Secretary of Energy, and the Secretary of the Army shall
jointly conduct a study of the potential for increasing
electric power production capability at federally owned or
operated water regulation, storage, and conveyance
facilities.
(b) Content.--The study under this section shall include
identification and description in detail of each facility
that is capable, with or without modification, of producing
additional hydroelectric power, including estimation of the
existing potential for the facility to generate hydroelectric
power.
(c) Report.--The Secretaries shall submit to the Committees
on Energy and Commerce, Resources, and Transportation and
Infrastructure of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report on the findings, conclusions, and recommendations of
the study under this section by not later than 18 months
after the date of the enactment of this Act. The report shall
include each of the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities currently conducted or
considered, or that could be considered, to produce
additional hydroelectric power from each identified facility.
(3) A summary of prior actions taken by the Secretaries to
produce additional hydroelectric power from each identified
facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility and the level of Federal power
customer involvement in the determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional energy or
capacity from each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric
power production by replacing turbine runners, by performing
generator upgrades or rewinds, or construction of pumped
storage facilities.
(7) The impact of increased hydroelectric power production
on irrigation, water supply, fish, wildlife, Indian tribes,
river health, water quality, navigation, recreation, fishing,
and flood control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs and
improve efficiency at, federally owned or operated water
regulation, storage, and conveyance facilities.

SEC. 1902. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

SEC. 1903. REPORT IDENTIFYING AND DESCRIBING THE STATUS OF
POTENTIAL HYDROPOWER FACILITIES.

(a) Report Requirement.--Not later than 90 days after the
date of enactment of this Act, the Secretary of the Interior,
acting through the Bureau of Reclamation, shall submit to the
Committee on Resources of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate a
report identifying and describing the status of potential
hydropower facilities included in water surface storage
studies undertaken by the Secretary for projects that have
not been completed or authorized for construction.
(b) Report Contents.--The report shall include the
following:
(1) Identification of all surface storage studies
authorized by Congress since the enactment of the Reclamation
Project Act of 1939 (43 U.S.C. 485 et seq.).
(2) The purposes of each project included within each study
identified under paragraph (1).
(3) The status of each study identified under paragraph
(1), including for each study--
(A) whether the study is completed or, if not completed,
still authorized;
(B) the level of analyses conducted at the feasibility and
reconnaissance levels of review;
(C) identifiable environmental impacts of each project
included in the study, including to fish and wildlife, water
quality, and recreation;
(D) projected water yield from each such project;
(E) beneficiaries of each such project;
(F) the amount authorized and expended;
(G) projected funding needs and timelines for completing
the study (if applicable);
(H) anticipated costs of each such project; and
(I) other factors that might interfere with construction of
any such project.
(4) An identification of potential hydroelectric facilities
that might be developed pursuant to each study identified
under paragraph (1).
(5) Applicable costs and benefits associated with potential
hydroelectric production pursuant to each study.

[[Page H2303]]

TITLE XX--OIL AND GAS--RESOURCES

Subtitle A--Production Incentives

SEC. 2001. DEFINITION OF SECRETARY.

In this subtitle, the term ``Secretary'' means the
Secretary of the Interior.

SEC. 2002. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

(a) Applicability of Section.--Notwithstanding any other
provision of law, this section applies to all royalty in-kind
accepted by the Secretary on or after the date of enactment
of this Act under any Federal oil or gas lease or permit
under section 36 of the Mineral Leasing Act (30 U.S.C. 192),
section 27 of the Outer Continental Shelf Lands Act (43
U.S.C. 1353), or any other Federal law governing leasing of
Federal land for oil and gas development.
(b) Terms and Conditions.--All royalty accruing to the
United States shall, on the demand of the Secretary, be paid
in oil or gas. If the Secretary makes such a demand, the
following provisions apply to such payment:
(1) Satisfaction of royalty obligation.--Delivery by, or on
behalf of, the lessee of the royalty amount and quality due
under the lease satisfies the lessee's royalty obligation for
the amount delivered, except that transportation and
processing reimbursements paid to, or deductions claimed by,
the lessee shall be subject to review and audit.
(2) Marketable condition.--
(A) In general.--Royalty production shall be placed in
marketable condition by the lessee at no cost to the United
States.
(B) Definition of marketable condition.--In this paragraph,
the term ``in marketable condition'' means sufficiently free
from impurities and otherwise in a condition that the royalty
production will be accepted by a purchaser under a sales
contract typical of the field or area in which the royalty
production was produced.
(3) Disposition by the secretary.--The Secretary may--
(A) sell or otherwise dispose of any royalty production
taken in-kind (other than oil or gas transferred under
section 27(a)(3) of the Outer Continental Shelf Lands Act (43
U.S.C. 1353(a)(3))) for not less than the market price; and
(B) transport or process (or both) any royalty production
taken in-kind.
(4) Retention by the secretary.--The Secretary may,
notwithstanding section 3302 of title 31, United States Code,
retain and use a portion of the revenues from the sale of oil
and gas taken in-kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use oil or gas received as royalty taken
in-kind (in this paragraph referred to as ``royalty
production'') to pay the cost of--
(A) transporting the royalty production;
(B) processing the royalty production;
(C) disposing of the royalty production; or
(D) any combination of transporting, processing, and
disposing of the royalty production.
(5) Limitation.--
(A) In general.--Except as provided in subparagraph (B),
the Secretary may not use revenues from the sale of oil and
gas taken in-kind to pay for personnel, travel, or other
administrative costs of the Federal Government.
(B) Exception.--Notwithstanding subparagraph (A), the
Secretary may use a portion of the revenues from the sale of
oil taken in-kind, without fiscal year limitation, to pay
salaries and other administrative costs directly related to
the royalty-in-kind program.
(c) Reimbursement of Cost.--If the lessee, pursuant to an
agreement with the United States or as provided in the lease,
processes the royalty gas or delivers the royalty oil or gas
at a point not on or adjacent to the lease area, the
Secretary shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to
the point of delivery or for processing costs; or
(2) allow the lessee to deduct the transportation or
processing costs in reporting and paying royalties in-value
for other Federal oil and gas leases.
(d) Benefit to the United States Required.--The Secretary
may receive oil or gas royalties in-kind only if the
Secretary determines that receiving royalties in-kind
provides benefits to the United States that are greater than
or equal to the benefits that are likely to have been
received had royalties been taken in-value.
(e) Reports.--
(1) In general.--Not later than September 30, 2005, the
Secretary shall submit to Congress a report that addresses--
(A) actions taken to develop businesses processes and
automated systems to fully support the royalty-in-kind
capability to be used in tandem with the royalty-in-value
approach in managing Federal oil and gas revenue; and
(B) future royalty-in-kind businesses operation plans and
objectives.
(2) Reports on oil or gas royalties taken in-kind.--For
each of fiscal years 2005 through 2014 in which the United
States takes oil or gas royalties in-kind from production in
any State or from the outer Continental Shelf, excluding
royalties taken in-kind and sold to refineries under
subsection (h), the Secretary shall submit to Congress a
report that describes--
(A) the methodology or methodologies used by the Secretary
to determine compliance with subsection (d), including the
performance standard for comparing amounts received by the
United States derived from royalties in-kind to amounts
likely to have been received had royalties been taken in-
value;
(B) an explanation of the evaluation that led the Secretary
to take royalties in-kind from a lease or group of leases,
including the expected revenue effect of taking royalties in-
kind;
(C) actual amounts received by the United States derived
from taking royalties in-kind and costs and savings incurred
by the United States associated with taking royalties in-
kind, including, but not limited to, administrative savings
and any new or increased administrative costs; and
(D) an evaluation of other relevant public benefits or
detriments associated with taking royalties in-kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken
in-kind from a lease, the Secretary shall deduct amounts paid
or deducted under subsections (b)(4) and (c) and deposit the
amount of the deductions in the miscellaneous receipts of the
United States Treasury.
(2) Accounting for deductions.--When the Secretary allows
the lessee to deduct transportation or processing costs under
subsection (c), the Secretary may not reduce any payments to
recipients of revenues derived from any other Federal oil and
gas lease as a consequence of that deduction.
(g) Consultation With States.--The Secretary--
(1) shall consult with a State before conducting a royalty
in-kind program under this subtitle within the State, and may
delegate management of any portion of the Federal royalty in-
kind program to the State except as otherwise prohibited by
Federal law; and
(2) shall consult annually with any State from which
Federal oil or gas royalty is being taken in-kind to ensure,
to the maximum extent practicable, that the royalty in-kind
program provides revenues to the State greater than or equal
to those likely to have been received had royalties been
taken in-value.
(h) Small Refineries.--
(1) Preference.--If the Secretary finds that sufficient
supplies of crude oil are not available in the open market to
refineries that do not have their own source of supply for
crude oil, the Secretary may grant preference to such
refineries in the sale of any royalty oil accruing or
reserved to the United States under Federal oil and gas
leases issued under any mineral leasing law, for processing
or use in such refineries at private sale at not less than
the market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary of
Energy may, at the discretion of the Secretary, prorate the
oil among refineries described in paragraph (1) in the area
in which the oil is produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in-kind from onshore oil and gas leases may be sold
at not less than the market price to any Federal agency.
(2) Offshore royalty.--Any royalty oil or gas taken in-kind
from a Federal oil or gas lease on the outer Continental
Shelf may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Federal Low-Income Energy Assistance Programs.--
(1) Preference.--In disposing of royalty oil or gas taken
in-kind under this section, the Secretary may grant a
preference to any person, including any Federal or State
agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall transmit a report
to Congress, assessing the effectiveness of granting
preferences specified in paragraph (1) and providing a
specific recommendation on the continuation of authority to
grant preferences.

SEC. 2003. MARGINAL PROPERTY PRODUCTION INCENTIVES.

(a) Definition of Marginal Property.--Until such time as
the Secretary issues regulations under subsection (e) that
prescribe a different definition, in this section the term
``marginal property'' means an onshore unit, communitization
agreement, or lease not within a unit or communitization
agreement, that produces on average the combined equivalent
of less than 15 barrels of oil per well per day or 90 million
British thermal units of gas per well per day calculated
based on the average over the 3 most recent production
months, including only wells that produce on more than half
of the days during those 3 production months.
(b) Conditions for Reduction of Royalty Rate.--Until such
time as the Secretary issues regulations under subsection (e)
that prescribe different thresholds or standards, the
Secretary shall reduce the royalty rate on--
(1) oil production from marginal properties as prescribed
in subsection (c) when the spot price of West Texas
Intermediate crude oil at Cushing, Oklahoma, is, on average,
less than $15 per barrel for 90 consecutive trading days; and
(2) gas production from marginal properties as prescribed
in subsection (c) when

[[Page H2304]]

the spot price of natural gas delivered at Henry Hub,
Louisiana, is, on average, less than $2.00 per million
British thermal units for 90 consecutive trading days.
(c) Reduced Royalty Rate.--
(1) In general.--When a marginal property meets the
conditions specified in subsection (b), the royalty rate
shall be the lesser of--
(A) 5 percent; or
(B) the applicable rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) Period of effectiveness.--The reduced royalty rate
under this subsection shall be effective beginning on the
first day of the production month following the date on which
the applicable condition specified in subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate
prescribed in subsection (d)(1)(A) shall terminate--
(1) with respect to oil production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of West Texas Intermediate crude oil at
Cushing, Oklahoma, on average, exceeds $15 per barrel for 90
consecutive trading days; or
(B) the property no longer qualifies as a marginal
property; and
(2) with respect to gas production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of natural gas delivered at Henry Hub,
Louisiana, on average, exceeds $2.00 per million British
thermal units for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property.
(e) Regulations Prescribing Different Relief.--
(1) Discretionary regulations.--The Secretary may by
regulation prescribe different parameters, standards, and
requirements for, and a different degree or extent of,
royalty relief for marginal properties in lieu of those
prescribed in subsections (a) through (d).
(2) Mandatory regulations.--Not later than 18 months after
the date of enactment of this Act, the Secretary shall by
regulation--
(A) prescribe standards and requirements for, and the
extent of royalty relief for, marginal properties for oil and
gas leases on the outer Continental Shelf; and
(B) define what constitutes a marginal property on the
outer Continental Shelf for purposes of this section.
(3) Considerations.--In promulgating regulations under this
subsection, the Secretary may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and the effects of
those provisions on production economics;
(E) other royalty relief programs;
(F) regional differences in average wellhead prices;
(G) national energy security issues; and
(H) other relevant matters.
(f) Savings Provision.--Nothing in this section prevents a
lessee from receiving royalty relief or a royalty reduction
pursuant to any other law (including a regulation) that
provides more relief than the amounts provided by this
section.

SEC. 2004. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP
WELLS IN THE SHALLOW WATERS OF THE GULF OF
MEXICO.

(a) Royalty Incentive Regulations for Ultra Deep Gas
Wells.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, in addition to any other regulations
that may provide royalty incentives for natural gas produced
from deep wells on oil and gas leases issued pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.),
the Secretary shall issue regulations granting royalty relief
suspension volumes of not less than 35,000,000,000 cubic feet
with respect to the production of natural gas from ultra deep
wells on leases issued in shallow waters less than 400 meters
deep located in the Gulf of Mexico wholly west of 87 degrees,
30 minutes west longitude. Regulations issued under this
subsection shall be retroactive to the date that the notice
of proposed rulemaking is published in the Federal Register.
(2) Definition of ultra deep well.--In this subsection, the
term ``ultra deep well'' means a well drilled with a
perforated interval, the top of which is at least 20,000 feet
true vertical depth below the datum at mean sea level.
(b) Royalty Incentive Regulations for Deep Gas Wells.--Not
later than 180 days after the date of enactment of this Act,
in addition to any other regulations that may provide royalty
incentives for natural gas produced from deep wells on oil
and gas leases issued pursuant to the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall issue
regulations granting royalty relief suspension volumes with
respect to the production of natural gas from deep wells on
leases issued in waters more than 200 meters but less than
400 meters deep located in the Gulf of Mexico wholly west of
87 degrees, 30 minutes west longitude. The suspension volumes
for deep wells within 200 to 400 meters of water depth shall
be calculated using the same methodology used to calculate
the suspension volumes for deep wells in the shallower waters
of the Gulf of Mexico, and in no case shall the suspension
volumes for deep wells within 200 to 400 meters of water
depth be lower than those for deep wells in shallower waters.
Regulations issued under this subsection shall be retroactive
to the date that the notice of proposed rulemaking is
published in the Federal Register.
(c) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.

SEC. 2005. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

(a) In General.--For all tracts located in water depths of
greater than 400 meters in the Western and Central Planning
Area of the Gulf of Mexico, including the portion of the
Eastern Planning Area of the Gulf of Mexico encompassing
whole lease blocks lying west of 87 degrees, 30 minutes West
longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)
occurring within 5 years after the date of enactment of this
Act shall use the bidding system authorized in section
8(a)(1)(H) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(1)(H)), except that the suspension of
royalties shall be set at a volume of not less than--
(1) 5,000,000 barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters;
(3) 12,000,000 barrels of oil equivalent for each lease in
water depths of 1,600 to 2,000 meters; and
(4) 16,000,000 barrels of oil equivalent for each lease in
water depths greater than 2,000 meters.
(b) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.

SEC. 2006. ALASKA OFFSHORE ROYALTY SUSPENSION.

Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in
the Planning Areas offshore Alaska'' after ``West
longitude''.

SEC. 2007. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM
RESERVE IN ALASKA.

(a) Transfer of Authority.--
(1) Redesignation.--The Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.) is amended by
redesignating section 107 (42 U.S.C. 6507) as section 108.
(2) Transfer.--The matter under the heading ``exploration
of national petroleum reserve in alaska'' under the heading
``ENERGY AND MINERALS'' of title I of Public Law 96-514 (42
U.S.C. 6508) is--
(A) transferred to the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.);
(B) designated as section 107 of that Act; and
(C) moved so as to appear after section 106 of that Act (42
U.S.C. 6506).
(b) Competitive Leasing.--Section 107 of the Naval
Petroleum Reserves Production Act of 1976 (as amended by
subsection (a) of this section) is amended--
(1) by striking the heading and all that follows through
``Provided, That (1) activities'' and inserting the
following:

``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

``(a) In General.--Notwithstanding any other provision of
law and pursuant to regulations issued by the Secretary, the
Secretary shall conduct an expeditious program of competitive
leasing of oil and gas in the National Petroleum Reserve in
Alaska (referred to in this section as the `Reserve').
``(b) Mitigation of Adverse Effects.--Activities'';
(2) by striking ``Alaska (the Reserve); (2) the'' and
inserting
``Alaska.
``(c) Land Use Planning; BLM Wilderness Study.--The'';
(3) by striking ``Reserve; (3) the'' and inserting
``Reserve.
``(d) First Lease Sale.--The'';
(4) by striking ``4332); (4) the'' and inserting
``4321 et seq.).
``(e) Withdrawals.--The'';
(5) by striking ``herein; (5) bidding'' and inserting
``under this section.
``(f) Bidding Systems.--Bidding'';
(6) by striking ``629); (6) lease'' and inserting
``629).
``(g) Geological Structures.--Lease'';
(7) by striking ``structures; (7) the'' and inserting
``structures.
``(h) Size of Lease Tracts.--The'';
(8) by striking ``Secretary; (8)'' and all that follows
through ``Drilling, production,'' and inserting
``Secretary.
``(i) Terms.--
``(1) In general.--Each lease shall be--
``(A) issued for an initial period of not more than 10
years; and
``(B) renewed for successive 10-year terms if--
``(i) oil or gas is produced from the lease in paying
quantities;
``(ii) oil or gas is capable of being produced in paying
quantities; or
``(iii) drilling or reworking operations, as approved by
the Secretary, are conducted on the leased land.
``(2) Renewal of nonproducing leases.--The Secretary shall
renew for an additional

[[Page H2305]]

10-year term a lease that does not meet the requirements of
paragraph (1)(B) if the lessee submits to the Secretary an
application for renewal not later than 60 days before the
expiration of the primary lease and--
``(A) the lessee certifies, and the Secretary agrees, that
hydrocarbon resources were discovered on 1 or more wells
drilled on the leased land in such quantities that a prudent
operator would hold the lease for potential future
development;
``(B) the lessee--
``(i) pays the Secretary a renewal fee of $100 per acre of
leased land; and
``(ii) provides evidence, and the Secretary agrees that,
the lessee has diligently pursued exploration that warrants
continuation with the intent of continued exploration or
future development of the leased land; or
``(C) all or part of the lease--
``(i) is part of a unit agreement covering a lease
described in subparagraph (A) or (B); and
``(ii) has not been previously contracted out of the unit.
``(3) Applicability.--This subsection applies to a lease
that--
``(A) is entered into before, on, or after the date of
enactment of the Energy Policy Act of 2005; and
``(B) is effective on or after the date of enactment of
that Act.
``(j) Unit Agreements.--
``(1) In general.--For the purpose of conservation of the
natural resources of all or part of any oil or gas pool,
field, reservoir, or like area, lessees (including
representatives) of the pool, field, reservoir, or like area
may unite with each other, or jointly or separately with
others, in collectively adopting and operating under a unit
agreement for all or part of the pool, field, reservoir, or
like area (whether or not any other part of the oil or gas
pool, field, reservoir, or like area is already subject to
any cooperative or unit plan of development or operation), if
the Secretary determines the action to be necessary or
advisable in the public interest.
``(2) Participation by state of alaska.--The Secretary
shall ensure that the State of Alaska is provided the
opportunity for active participation concerning creation and
management of units formed or expanded under this subsection
that include acreage in which the State of Alaska has an
interest in the mineral estate.
``(3) Participation by regional corporations.--The
Secretary shall ensure that any Regional Corporation (as
defined in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602)) is provided the opportunity for active
participation concerning creation and management of units
that include acreage in which the Regional Corporation has an
interest in the mineral estate.
``(4) Production allocation methodology.--The Secretary may
use a production allocation methodology for each
participating area within a unit created for land in the
Reserve, State of Alaska land, or Regional Corporation land
shall, when appropriate, be based on the characteristics of
each specific oil or gas pool, field, reservoir, or like area
to take into account reservoir heterogeneity and a real
variation in reservoir producibility across diverse leasehold
interests.
``(5) Benefit of operations.--Drilling, production,'';
(9) by striking ``When separate'' and inserting the
following:
``(6) Pooling.--If separate'';
(10) by inserting ``(in consultation with the owners of the
other land)'' after ``determined by the Secretary of the
Interior'';
(11) by striking ``thereto; (10) to'' and all that follows
through ``the terms provided therein.'' and inserting
``to the agreement.
``(k) Exploration Incentives.--
``(1) In general.--
``(A) Waiver, suspension, or reduction.--To encourage the
greatest ultimate recovery of oil or gas or in the interest
of conservation, the Secretary may waive, suspend, or reduce
the rental fees or minimum royalty, or reduce the royalty on
an entire leasehold (including on any lease operated pursuant
to a unit agreement), if (after consultation with the State
of Alaska and the North Slope Borough of Alaska and the
concurrence of any Regional Corporation for leases that
include lands available for acquisition by the Regional
Corporation under the provisions of section 1431(o) of the
Alaska National Interest Lands Conservation Act (16 U.S.C.
3101 et seq.)) the Secretary determines that the waiver,
suspension, or reduction is in the public interest.
``(B) Applicability.--This paragraph applies to a lease
that--
``(i) is entered into before, on, or after the date of
enactment of the Energy Policy Act of 2005; and
``(ii) is effective on or after the date of enactment of
that Act.'';
(12) by striking ``The Secretary is authorized to'' and
inserting the following:
``(2) Suspension of operations and production.--The
Secretary may'';
(13) by striking ``In the event'' and inserting the
following:
``(3) Suspension of payments.--If'';
(14) by striking ``thereto; and (11) all'' and inserting
``to the lease.
``(l) Receipts.--All'';
(15) by redesignating clauses (A), (B), and (C) as clauses
(1), (2), and (3), respectively;
(16) by striking ``Any agency'' and inserting the
following:
``(m) Explorations.--Any agency'';
(17) by striking ``Any action'' and inserting the
following:
``(n) Environmental Impact Statements.--
``(1) Judicial review.--Any action'';
(18) by striking ``The detailed'' and inserting the
following:
``(2) Initial lease sales.--The detailed'';
(19) by striking ``of the Naval Petroleum Reserves
Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''; and
(20) by adding at the end the following:
``(o) Waiver of Administration for Conveyed Lands.--
Notwithstanding section 14(g) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1613(g)) or any other provision of
law--
``(1) the Secretary of the Interior shall waive
administration of any oil and gas lease insofar as such lease
covers any land in the National Petroleum Reserve in Alaska
in which the subsurface estate is conveyed to the Arctic
Slope Regional Corporation; and
``(2) if any such conveyance of such subsurface estate does
not cover all the land embraced within any such oil and gas
lease--
``(A) the person who owns the subsurface estate in any
particular portion of the land covered by such lease shall be
entitled to all of the revenues reserved under such lease as
to such portion, including, without limitation, all the
royalty payable with respect to oil or gas produced from or
allocated to such particular portion of the land covered by
such lease; and
``(B) the Secretary of the Interior shall segregate such
lease into 2 leases, 1 of which shall cover only the
subsurface estate conveyed to the Arctic Slope Regional
Corporation, and operations, production, or other
circumstances (other than payment of rentals or royalties)
that satisfy obligations of the lessee under, or maintain,
either of the segregated leases shall likewise satisfy
obligations of the lessee under, or maintain, the other
segregated lease to the same extent as if such segregated
leases remained a part of the original unsegregated lease.''.

SEC. 2008. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL
LAND.

(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a program not later
than 1 year after the date of enactment of this Act to
remediate, reclaim, and close orphaned, abandoned, or idled
oil and gas wells located on land administered by the land
management agencies within the Department of the Interior and
the Department of Agriculture.
(b) Activities.--The program under subsection (a) shall--
(1) include a means of ranking orphaned, abandoned, or
idled wells sites for priority in remediation, reclamation,
and closure, based on public health and safety, potential
environmental harm, and other land use priorities;
(2) provide for identification and recovery of the costs of
remediation, reclamation, and closure from persons or other
entities currently providing a bond or other financial
assurance required under State or Federal law for an oil or
gas well that is orphaned, abandoned, or idled; and
(3) provide for recovery from the persons or entities
identified under paragraph (2), or their sureties or
guarantors, of the costs of remediation, reclamation, and
closure of such wells.
(c) Cooperation and Consultations.--In carrying out the
program under subsection (a), the Secretary shall--
(1) work cooperatively with the Secretary of Agriculture
and the States within which Federal land is located; and
(2) consult with the Secretary of Energy and the Interstate
Oil and Gas Compact Commission.
(d) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in cooperation with the
Secretary of Agriculture, shall submit to Congress a plan for
carrying out the program under subsection (a).
(e) Idled Well.--For the purposes of this section, a well
is idled if--
(1) the well has been nonoperational for at least 7 years;
and
(2) there is no anticipated beneficial use for the well.
(f) Technical Assistance Program for Non-Federal Land.--
(1) In general.--The Secretary of Energy shall establish a
program to provide technical and financial assistance to oil
and gas producing States to facilitate State efforts over a
10-year period to ensure a practical and economical remedy
for environmental problems caused by orphaned or abandoned
oil and gas exploration or production well sites on State or
private land.
(2) Assistance.--The Secretary of Energy 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 orphaned or
abandoned oil or gas wells on State and private land.
(3) Activities.--The program under paragraph (1) shall
include--
(A) mechanisms to facilitate identification, if feasible,
of the persons currently providing a bond or other form of
financial assurance required under State or Federal law for
an oil or gas well that is orphaned or abandoned;
(B) criteria for ranking orphaned or abandoned well sites
based on factors such as public health and safety, potential
environmental harm, and other land use priorities;
(C) information and training programs on best practices for
remediation of different types of sites; and

[[Page H2306]]

(D) funding of State mitigation efforts on a cost-shared
basis.
(g) Federal Reimbursement for Orphaned Well Reclamation
Pilot Program.--
(1) Reimbursement for remediating, reclaiming, and closing
wells on land subject to a new lease.--The Secretary shall
carry out a pilot program under which, in issuing a new oil
and gas lease on federally owned land on which 1 or more
orphaned wells are located, the Secretary--
(A) may require, but not as a condition of the lease, that
the lessee remediate, reclaim, and close in accordance with
standards established by the Secretary, all orphaned wells on
the land leased; and
(B) shall develop a program to reimburse a lessee, through
a royalty credit against the Federal share of royalties owed
or other means, for the reasonable actual costs of
remediating, reclaiming, and closing the orphaned well
pursuant to that requirement.
(2) Reimbursement for reclaiming orphaned wells on other
land.--In carrying out this subsection, the Secretary--
(A) may authorize any lessee under an oil and gas lease on
federally owned land to reclaim in accordance with the
Secretary's standards--
(i) an orphaned well on unleased federally owned land; or
(ii) an orphaned well located on an existing lease on
federally owned land for the reclamation of which the lessee
is not legally responsible; and
(B) shall develop a program to provide reimbursement of 115
percent of the reasonable actual costs of remediating,
reclaiming, and closing the orphaned well, through credits
against the Federal share of royalties or other means.
(3) Effect of remediation, reclamation, or closure of well
pursuant to an approved remediation plan.--
(A) Definition of remediating party.--In this paragraph the
term ``remediating party'' means a person who remediates,
reclaims, or closes an abandoned, orphaned, or idled well
pursuant to this subsection.
(B) General rule.--A remediating party who remediates,
reclaims, or closes an abandoned, orphaned, or idled well in
accordance with a detailed written remediation plan approved
by the Secretary under this subsection, shall be immune from
civil liability under Federal environmental laws, for--
(i) pre-existing environmental conditions at or associated
with the well, unless the remediating party owns or operates,
in the past owned or operated, or is related to a person that
owns or operates or in the past owned or operated, the well
or the land on which the well is located; or
(ii) any remaining releases of pollutants from the well
during or after completion of the remediation, reclamation,
or closure of the well, unless the remediating party causes
increased pollution as a result of activities that are not in
accordance with the approved remediation plan.
(C) Limitations.--Nothing in this section shall limit in
any way the liability of a remediating party for injury,
damage, or pollution resulting from the remediating party's
acts or omissions that are not in accordance with the
approved remediation plan, are reckless or willful,
constitute gross negligence or wanton misconduct, or are
unlawful.
(4) Regulations.--The Secretary may issue such regulations
as are appropriate to carry out this subsection.
(h) 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
2006 through 2010.
(2) Use.--Of the amounts authorized under paragraph (1),
$5,000,000 are authorized for each fiscal year for activities
under subsection (f).

SEC. 2009. COMBINED HYDROCARBON LEASING.

(a) Special Provisions Regarding Leasing.--Section 17(b)(2)
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) For any area that contains any combination of tar
sand and oil or gas (or both), the Secretary may issue under
this Act, separately--
``(i) a lease for exploration for and extraction of tar
sand; and
``(ii) a lease for exploration for and development of oil
and gas.
``(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a
lease issued for oil and gas, except that the minimum
acceptable bid required for a lease issued for tar sand shall
be $2 per acre.
``(D) The Secretary may waive, suspend, or alter any
requirement under section 26 that a permittee under a permit
authorizing prospecting for tar sand must exercise due
diligence, to promote any resource covered by a combined
hydrocarbon lease.''.
(b) Conforming Amendment.--Section 17(b)(1)(B) of the
Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in
the second sentence by inserting ``, subject to paragraph
(2)(B),'' after ``Secretary''.
(c) Regulations.--Not later than 45 days after the date of
enactment of this Act, the Secretary shall issue final
regulations to implement this section.

SEC. 2010. ALTERNATE ENERGY-RELATED USES ON THE OUTER
CONTINENTAL SHELF.

(a) Amendment to Outer Continental Shelf Lands Act.--
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C.
1337) is amended by adding at the end the following:
``(p) Leases, Easements, or Rights-of-Way for Energy and
Related Purposes.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Department in which the Coast Guard is
operating and other relevant departments and agencies of the
Federal Government, may grant a lease, easement, or right-of-
way on the outer Continental Shelf for activities not
otherwise authorized in this Act, the Deepwater Port Act of
1974 (33 U.S.C. 1501 et seq.), the Ocean Thermal Energy
Conversion Act of 1980 (42 U.S.C. 9101 et seq.), or other
applicable law, if those activities--
``(A) support exploration, development, production,
transportation, or storage of oil, natural gas, or other
minerals;
``(B) produce or support production, transportation, or
transmission of energy from sources other than oil and gas;
or
``(C) use, for energy-related or marine-related purposes,
facilities currently or previously used for activities
authorized under this Act.
``(2) Payments.--The Secretary shall establish reasonable
forms of payments for any easement or right-of-way granted
under this subsection. Such payments shall not be assessed on
the basis of throughput or production. The Secretary may
establish fees, rentals, bonus, or other payments by rule or
by agreement with the party to which the lease, easement, or
right-of-way is granted. If a lease, easement, right-of-way,
license, or permit under this subsection covers a specific
tract of, or regards a facility located on, the outer
Continental Shelf and is not an easement or right-of-way for
transmission or transportation of energy, minerals, or other
natural resources, the Secretary shall pay 50 percent of any
amount received from the holder of the lease, easement,
right-of-way, license, or permit to the State off the shore
of which the geographic center of the area covered by the
lease, easement, right-of-way, license, permit, or facility
is located, in accordance with Federal law determining the
seaward lateral boundaries of the coastal States.
``(3) Consultation.--Before exercising authority under this
subsection, the Secretary shall consult with the Secretary of
Defense and other appropriate agencies concerning issues
related to national security and navigational obstruction.
``(4) Competitive or noncompetitive basis.--
``(A) In general.--The Secretary may issue a lease,
easement, or right-of-way for energy and related purposes as
described in paragraph (1) on a competitive or noncompetitive
basis.
``(B) Considerations.--In determining whether a lease,
easement, or right-of-way shall be granted competitively or
noncompetitively, the Secretary shall consider such factors
as--
``(i) prevention of waste and conservation of natural
resources;
``(ii) the economic viability of an energy project;
``(iii) protection of the environment;
``(iv) the national interest and national security;
``(v) human safety;
``(vi) protection of correlative rights; and
``(vii) potential return for the lease, easement, or right-
of-way.
``(5) Regulations.--Not later than 270 days after the date
of enactment of the Energy Policy Act of 2005, the Secretary,
in consultation with the Secretary of the Department in which
the Coast Guard is operating and other relevant agencies of
the Federal Government and affected States, shall issue any
necessary regulations to ensure safety, protection of the
environment, prevention of waste, and conservation of the
natural resources of the outer Continental Shelf, protection
of national security interests, and protection of correlative
rights in the outer Continental Shelf.
``(6) Security.--The Secretary shall require the holder of
a lease, easement, or right-of-way granted under this
subsection to furnish a surety bond or other form of
security, as prescribed by the Secretary, and to comply with
such other requirements as the Secretary considers necessary
to protect the interests of the United States.
``(7) Effect of subsection.--Nothing in this subsection
displaces, supersedes, limits, or modifies the jurisdiction,
responsibility, or authority of any Federal or State agency
under any other Federal law.
``(8) Applicability.--This subsection does not apply to any
area on the outer Continental Shelf designated as a National
Marine Sanctuary.''.
(b) Conforming Amendment.--Section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by
striking the section heading and inserting the following:
``Leases, Easements, and Rights-of-Way on the Outer
Continental Shelf.--''.
(c) Savings Provision.--Nothing in the amendment made by
subsection (a) requires, with respect to any project--
(1) for which offshore test facilities have been
constructed before the date of enactment of this Act; or
(2) for which a request for proposals has been issued by a
public authority,
any resubmittal of documents previously submitted or any
reauthorization of actions previously authorized.

[[Page H2307]]

SEC. 2011. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

(a) Short Title.--This section may be cited as the
``National Geological and Geophysical Data Preservation
Program Act of 2005''.
(b) Program.--The Secretary shall carry out a National
Geological and Geophysical Data Preservation Program in
accordance with this section--
(1) to archive geologic, geophysical, and engineering data,
maps, well logs, and samples;
(2) to provide a national catalog of such archival
material; and
(3) to provide technical and financial assistance related
to the archival material.
(c) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a plan for the implementation of the Program.
(d) Data Archive System.--
(1) Establishment.--The Secretary shall establish, as a
component of the Program, a data archive system to provide
for the storage, preservation, and archiving of subsurface,
surface, geological, geophysical, and engineering data and
samples. The Secretary, in consultation with the Advisory
Committee, shall develop guidelines relating to the data
archive system, including the types of data and samples to be
preserved.
(2) System components.--The system shall be comprised of
State agencies that elect to be part of the system and
agencies within the Department of the Interior that maintain
geological and geophysical data and samples that are
designated by the Secretary in accordance with this
subsection. The Program shall provide for the storage of data
and samples through data repositories operated by such
agencies.
(3) Limitation of designation.--The Secretary may not
designate a State agency as a component of the data archive
system unless that agency is the agency that acts as the
geological survey in the State.
(4) Data from federal land.--The data archive system shall
provide for the archiving of relevant subsurface data and
samples obtained from Federal land--
(A) in the most appropriate repository designated under
paragraph (2), with preference being given to archiving data
in the State in which the data were collected; and
(B) consistent with all applicable law and requirements
relating to confidentiality and proprietary data.
(e) National Catalog.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall develop and
maintain, as a component of the Program, a national catalog
that identifies--
(A) data and samples available in the data archive system
established under subsection (d);
(B) the repository for particular material in the system;
and
(C) the means of accessing the material.
(2) Availability.--The Secretary shall make the national
catalog accessible to the public on the site of the Survey on
the Internet, consistent with all applicable requirements
related to confidentiality and proprietary data.
(f) Advisory Committee.--
(1) In general.--The Advisory Committee shall advise the
Secretary on planning and implementation of the Program.
(2) New duties.--In addition to its duties under the
National Geologic Mapping Act of 1992 (43 U.S.C. 31a et
seq.), the Advisory Committee shall perform the following
duties:
(A) Advise the Secretary on developing guidelines and
procedures for providing assistance for facilities under
subsection (g)(1).
(B) Review and critique the draft implementation plan
prepared by the Secretary under subsection (c).
(C) Identify useful studies of data archived under the
Program that will advance understanding of the Nation's
energy and mineral resources, geologic hazards, and
engineering geology.
(D) Review the progress of the Program in archiving
significant data and preventing the loss of such data, and
the scientific progress of the studies funded under the
Program.
(E) Include in the annual report to the Secretary required
under section 5(b)(3) of the National Geologic Mapping Act of
1992 (43 U.S.C. 31d(b)(3)) an evaluation of the progress of
the Program toward fulfilling the purposes of the Program
under subsection (b).
(g) Financial Assistance.--
(1) Archive facilities.--Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to a State agency that is designated under
subsection (d)(2) for providing facilities to archive energy
material.
(2) Studies.--Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to any State agency designated under subsection
(d)(2) for studies and technical assistance activities that
enhance understanding, interpretation, and use of materials
archived in the data archive system established under
subsection (d).
(3) Federal share.--The Federal share of the cost of an
activity carried out with assistance under this subsection
shall be not more than 50 percent of the total cost of the
activity.
(4) Private contributions.--The Secretary shall apply to
the non-Federal share of the cost of an activity carried out
with assistance under this subsection the value of private
contributions of property and services used for that
activity.
(h) Report.--The Secretary shall include in each report
under section 8 of the National Geologic Mapping Act of 1992
(43 U.S.C. 31g)--
(1) a description of the status of the Program;
(2) an evaluation of the progress achieved in developing
the Program during the period covered by the report; and
(3) any recommendations for legislative or other action the
Secretary considers necessary and appropriate to fulfill the
purposes of the Program under subsection (b).
(i) Maintenance of State Effort.--It is the intent of
Congress that the States not use this section as an
opportunity to reduce State resources applied to the
activities that are the subject of the Program.
(j) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory Committee''
means the advisory committee established under section 5 of
the National Geologic Mapping Act of 1992 (43 U.S.C. 31d).
(2) Program.--The term ``Program'' means the National
Geological and Geophysical Data Preservation Program carried
out under this section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(4) Survey.--The term ``Survey'' means the United States
Geological Survey.
(k) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2006 through 2010.

SEC. 2012. 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: ``, and 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. 2013. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY
DETERMINATION UNDER THE COASTAL ZONE MANAGEMENT
ACT OF 1972.

(a) In General.--Section 319 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1465) is amended to read as follows:

``Appeals to the Secretary

``Sec. 319. (a) Notice.--The Secretary shall publish an
initial notice in the Federal Register not later than 30 days
after the date of the filing of any appeal to the Secretary
of a consistency determination under section 307.
``(b) Closure of Record.--
``(1) In general.--Not later than the end of the 120-day
period beginning on the date of publication of an initial
notice under subsection (a), the Secretary shall receive no
more filings on the appeal and the administrative record
regarding the appeal shall be closed.
``(2) Notice.--Upon the closure of the administrative
record, the Secretary shall immediately publish a notice that
the administrative record has been closed.
``(c) Deadline for Decision.--The Secretary shall issue a
decision in any appeal filed under section 307 not later than
120 days after the closure of the administrative record.
``(d) Application.--This section applies to appeals
initiated by the Secretary and appeals filed by an
applicant.''.
(b) Application.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall apply with respect to
any appeal initiated or filed before, on, or after the date
of enactment of this Act.
(2) Limitation.--Subsection (a) of section 319 of the
Coastal Zone Management Act of 1972 (as amended by subsection
(a)) shall not apply with respect to an appeal initiated or
filed before the date of enactment of this Act.
(c) Closure of Record for Appeal Filed Before Date of
Enactment.--Notwithstanding section 319(b)(1) of the Coastal
Zone Management Act of 1972 (as amended by this section), in
the case of an appeal of a consistency determination under
section 307 of that Act initiated or filed before the date of
enactment of this Act, the Secretary of Commerce shall
receive no more filings on the appeal and the administrative
record regarding the appeal shall be closed not later than
120 days after the date of enactment of this Act.

SEC. 2014. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES,
DOCUMENTATION, AND STUDIES.

(a) In General.--The Mineral Leasing Act is amended by
inserting after section 37 (30 U.S.C. 193) the following:

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

``Sec. 38. (a) In General.--The Secretary of the Interior
shall issue regulations under which the Secretary shall
reimburse a person that is a lessee, operator, operating
rights owner, or applicant for any lease under this Act for
reasonable amounts paid by the person for preparation for the
Secretary by a contractor or other person selected by the
Secretary of any project-level analysis, documentation, or
related study required pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to
the lease.

[[Page H2308]]

``(b) Conditions.--The Secretary may provide reimbursement
under subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily;
``(3) the person maintains records of its costs in
accordance with regulations issued by the Secretary;
``(4) the reimbursement is in the form of a reduction in
the Federal share of the royalty required to be paid for the
lease for which the analysis, documentation, or related study
is conducted, and is agreed to by the Secretary and the
person reimbursed prior to commencing the analysis,
documentation, or related study; and
``(5) the agreement required under paragraph (4) contains
provisions--
``(A) reducing royalties owed on lease production based on
market prices;
``(B) stipulating an automatic termination of the royalty
reduction upon recovery of documented costs; and
``(C) providing a process by which the lessee may seek
reimbursement for circumstances in which production from the
specified lease is not possible.''.
(b) Application.--The amendment made by this section shall
apply with respect to an analysis, documentation, or a
related study conducted on or after the date of enactment of
this Act for any lease entered into before, on, or after the
date of enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendment made by this section
by not later than 1 year after the date of enactment of this
Act.

SEC. 2015. GAS HYDRATE PRODUCTION INCENTIVE.

(a) Purpose.--The purpose of this section is to promote
natural gas production from the abundant natural gas hydrate
resources on the outer Continental Shelf and Federal lands in
Alaska by providing royalty incentives.
(b) Suspension of Royalties.--
(1) In general.--The Secretary of the Interior shall grant
royalty relief in accordance with this section for natural
gas produced from gas hydrate resources under any lease that
is an eligible lease under paragraph (2).
(2) Eligible leases.--A lease shall be an eligible lease
for purposes of this section if--
(A) it is issued under the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.), or is an oil and gas lease
issued for onshore Federal lands in Alaska;
(B) it is issued prior to January 1, 2016; and
(C) production under the lease of natural gas from the gas
hydrate resources commences prior to January 1, 2018.
(3) Amount of relief.--The Secretary shall grant royalty
relief under this section as a suspension volume of at least
50 billion cubic feet of natural gas produced from gas
hydrate resources per 9 square mile leased tract. Such relief
shall be in addition to any other royalty relief under any
other provision applicable to the lease that does not
specifically grant a gas hydrate production incentive. The
minimum suspension volume under this section for leased
tracts that are smaller or larger than nine square miles
shall be adjusted on a proportional basis.
(4) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.
(c) Application.--This section shall apply to any eligible
lease issued before, on, or after the date of enactment of
this Act.
(d) Rulemakings.--The Secretary shall complete any
rulemakings implementing this section within 1 year after the
date of enactment of this Act.
(e) Gas Hydrate Resources Defined.--In this section, the
term ``gas hydrate resources'' includes both the natural gas
content of gas hydrates within the hydrate stability zone and
free natural gas trapped by and beneath the hydrate stability
zone.

SEC. 2016. ONSHORE DEEP GAS PRODUCTION INCENTIVE.

(a) Purpose.--The purpose of this section is to promote
natural gas production from the abundant onshore deep gas
resources on Federal lands by providing royalty incentives.
(b) Suspension of Royalties.--
(1) In general.--The Secretary shall grant royalty relief
in accordance with this section for natural gas produced from
deep wells spudded after the date of enactment of this Act
under any onshore Federal oil and gas lease.
(2) Amount of relief.--The Secretary shall grant royalty
relief under this section as a suspension volume determined
by the Secretary in an amount necessary to maximize
production of natural gas volumes. The maximum suspension
volume shall be 50 billion cubic feet of natural gas per
lease. Such royalty suspension volume shall be applied
beginning with the first dollar of royalty obligation for
production on or after the date of enactment of this Act.
(3) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.
(c) Application.--This section shall apply to any onshore
Federal oil and gas lease issued before, on, or after the
date of enactment of this Act.
(d) Rulemakings.--
(1) Requirement.--The Secretary shall complete any
rulemakings implementing this section within 1 year after the
date of enactment of this Act.
(2) Definition of deep well.--Such regulations shall
include a definition of the term ``deep well'' for purposes
of this section.

SEC. 2017. ENHANCED OIL AND NATURAL GAS PRODUCTION INCENTIVE.

(a) Findings.--Congress finds the following:
(1) Approximately two-thirds of the original oil in place
in the United States remains unproduced.
(2) Enhanced oil and natural gas production from the
sequestering of carbon dioxide and other appropriate gases
has the potential to increase oil and natural gas production
in the United States by 2 million barrels of oil equivalent
per day, or more.
(3) Collection of carbon dioxide and other appropriate
gases from industrial facilities could provide a significant
source of these gases that could be permanently sequestered
into oil and natural gas fields.
(4) Such collection could be made economic by providing
production incentives to oil and natural gas lessees.
(5) Providing production incentives for enhanced oil and
natural gas production would promote significant advances in
emissions control and capture technology.
(6) Capturing and productively using industrial emissions
of carbon dioxide would help reduce the carbon intensity of
the economy.
(7) Enhanced production of oil and natural gas lessens the
potential for environmental impacts when compared with
development of new oil and natural gas fields because the
infrastructure, such as wells, pipelines, and platforms, is
generally already in place.
(b) Purpose.--The purpose of this section is--
(1) to promote the capturing, transportation, and injection
of produced carbon dioxide, natural carbon dioxide, and other
appropriate gases for sequestration into oil and gas fields;
and
(2) to promote oil and natural gas production from the
abundant resources on the outer Continental Shelf and onshore
Federal lands by enhancing recovery of oil or natural gas (or
both).
(c) Suspension of Royalties.--
(1) In general.--The Secretary of the Interior shall grant
a royalty relief in accordance with this section for
production of oil or natural gas (or both) from lands subject
to an eligible lease into which the lessee injects carbon
dioxide, or other appropriate gas or other matter approved by
the Secretary, for the purpose of enhancing recovery of oil
or natural gas (or both) from the eligible lease.
(2) Eligible leases.--A lease shall be an eligible lease
for purposes of this section if it is a lease for production
of oil or gas (or both) from Federal outer Continental Shelf
or onshore lands that the Secretary determines may contain a
volume of oil or natural gas that would not likely be
produced without royalty relief under this subsection.
(3) Amount of relief.--The Secretary shall grant royalty
relief under this section as a suspension volume determined
by the Secretary in an amount necessary to maximize
production of oil and natural gas volumes. The maximum
suspension volume shall be 50 billion cubic feet of natural
gas, or equivalent oil volume on a Btu basis, or a
combination thereof, per eligible lease.
(4) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.
(d) Application.--This section shall apply to any eligible
lease issued before, on, or after the date of enactment of
this Act.
(e) Rulemakings.--The Secretary shall complete any
rulemakings implementing this provision within 1 year after
the date of enactment of this Act.

SEC. 2018. OIL SHALE.

(a) Finding.--Congress finds that oil shale resources
located within the United States--
(1) total almost 2 trillion barrels of oil in place; and
(2) are a strategically important domestic resource that
should be developed on an accelerated basis to reduce our
growing reliance on politically and economically unstable
sources of foreign oil imports.
(b) Requirement to Develop Oil Shale Leasing Program.--The
Secretary of the Interior shall develop a Federal commercial
oil shale leasing program as soon as practicable and publish
a final regulation implementing such program by not later
than December 31, 2006.
(c) Commencement of Lease Sales.--The Secretary shall hold
the first oil shale lease sale under such program within 180
days after publishing the final regulation.
(d) Report.--Within 90 days after the date of enactment of
this Act, the Secretary shall report to the Committee on
Resources of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate on--
(1) the interim actions necessary to--
(A) develop the program under subsection (b);
(B) promulgate the final regulation under subsection (b);
and
(C) conduct the first lease sale under the program under
subsection (b); and
(2) a schedule for completing such actions.
(e) Oil Shale Land Exchanges.--
(1) Requirement.--The Secretary shall identify and pursue
to completion oil shale land exchanges, on a value-for-value
basis, that will allow qualified oil shale developers to have
early access to currently owned Federal oil shale lands and
to commence commercial oil shale development.
(2) Applicable law.--The Secretary shall conduct land
exchanges under this subsection in accordance with the
Federal Land

[[Page H2309]]

Policy Management Act of 1976 (43 U.S.C. 1701 et seq.) and
the Federal Land Exchange Facilitation Act of 1988 (43 U.S.C.
1701 note).

SEC. 2019. USE OF INFORMATION ABOUT OIL AND GAS PUBLIC
CHALLENGES.

(a) Findings.--Congress finds the following:
(1) The Government Accountability Office (in this section
referred to as the ``GAO''), in report GAO-05-124, found that
the Bureau of Land Management does not systematically gather
and use nationwide information on public challenges to manage
its oil and gas program.
(2) The GAO found that this failure prevents the Director
of the Bureau from assessing the impact of public challenges
on the workload of the Bureau of Land Management State
offices and eliminates the ability of the Director to make
appropriate staffing and funding resource allocation
decisions.
(b) Requirement.--The Secretary of the Interior and the
Secretary of Agriculture shall systematically collect and use
nationwide information on public challenges to manage the oil
and gas programs of the bureaus within their departments. The
Secretaries shall gather such information at the planning,
leasing, exploration, and development stages, and shall
maintain such information electronically with current data.

Subtitle B--Access to Federal Land

SEC. 2021. OFFICE OF FEDERAL ENERGY PROJECT COORDINATION.

(a) Establishment.--The President shall establish the
Office of Federal Energy Project Coordination (referred to in
this section as the ``Office'') within the Executive Office
of the President in the same manner and with the same mission
as the White House Energy Projects Task Force established by
Executive Order No. 13212 (42 U.S.C. 13201 note).
(b) Staffing.--The Office shall be staffed by functional
experts from relevant Federal agencies on a nonreimbursable
basis to carry out the mission of the Office.
(c) Report.--The Office shall transmit an annual report to
Congress that describes the activities put in place to
coordinate and expedite Federal decisions on energy projects.
The report shall list accomplishments in improving the
Federal decisionmaking process and shall include any
additional recommendations or systemic changes needed to
establish a more effective and efficient Federal permitting
process.

SEC. 2022. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING
PRACTICES.

(a) Review of Onshore Oil and Gas Leasing Practices.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture with respect
to National Forest System lands under the jurisdiction of the
Department of Agriculture, shall perform an internal review
of current Federal onshore oil and gas leasing and permitting
practices.
(2) Inclusions.--The review shall include the process for--
(A) accepting or rejecting offers to lease;
(B) administrative appeals of decisions or orders of
officers or employees of the Bureau of Land Management with
respect to a Federal oil or gas lease;
(C) considering surface use plans of operation, including
the timeframes in which the plans are considered, and any
recommendations for improving and expediting the process; and
(D) identifying stipulations to address site-specific
concerns and conditions, including those stipulations
relating to the environment and resource use conflicts.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall transmit a report to Congress
that describes--
(1) actions taken under section 3 of Executive Order No.
13212 (42 U.S.C. 13201 note); and
(2) actions taken or any plans to improve the Federal
onshore oil and gas leasing program.

SEC. 2023. MANAGEMENT OF FEDERAL OIL AND GAS LEASING
PROGRAMS.

(a) Timely Action on Leases and Permits.--To ensure timely
action on oil and gas leases and applications for permits to
drill on land otherwise available for leasing, the Secretary
of the Interior (in this section referred to as the
``Secretary'') shall--
(1) ensure expeditious compliance with 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
and the public; and
(3) improve the collection, storage, and retrieval of
information relating to the leasing activities.
(b) Best Management Practices.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop and
implement best management practices to--
(A) improve the administration of the onshore oil and gas
leasing program under the Mineral Leasing Act (30 U.S.C. 181
et seq.); and
(B) ensure timely action on oil and gas leases and
applications for permits to drill on lands otherwise
available for leasing.
(2) Considerations.--In developing the best management
practices under paragraph (1), the Secretary shall consider
any recommendations from the review under section 2022.
(3) Regulations.--Not later than 180 days after the
development of best management practices under paragraph (1),
the Secretary shall publish, for public comment, proposed
regulations that set forth specific timeframes for processing
leases and applications in accordance with the practices,
including deadlines for--
(A) approving or disapproving resource management plans and
related documents, lease applications, and surface use plans;
and
(B) related administrative appeals.
(c) Improved Enforcement.--The Secretary shall improve
inspection and enforcement of oil and gas activities,
including enforcement of terms and conditions in permits to
drill.
(d) Authorization of Appropriations.--In addition to
amounts authorized to be appropriated to carry out section 17
of the Mineral Leasing Act (30 U.S.C. 226), there are
authorized to be appropriated to the Secretary for each of
fiscal years 2006 through 2009--
(1) $40,000,000 to carry out subsections (a) and (b); and
(2) $20,000,000 to carry out subsection (c).

SEC. 2024. CONSULTATION REGARDING OIL AND GAS LEASING ON
PUBLIC LAND.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall enter into a memorandum of
understanding regarding oil and gas leasing on--
(1) public lands under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System lands under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall
include provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of oil and gas lease
applications, surface use plans of operation, and
applications for permits to drill, including steps for
processing surface use plans and applications for permits to
drill consistent with the timelines established by the
amendment made by section 2028;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance
efforts; and
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied.
(c) Data Retrieval System.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall establish a joint data
retrieval system that is capable of--
(A) tracking applications and formal requests made in
accordance with procedures of the Federal onshore oil and gas
leasing program; and
(B) providing information regarding the status of the
applications and requests within the Department of the
Interior and the Department of Agriculture.
(2) Resource mapping.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall establish a joint
Geographic Information System mapping system for use in--
(A) tracking surface resource values to aid in resource
management; and
(B) processing surface use plans of operation and
applications for permits to drill.

SEC. 2025. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING
ONSHORE FEDERAL LAND.

(a) Assessment.--Section 604 of the Energy Act of 2000 (42
U.S.C. 6217) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``reserve''; and
(ii) by striking ``and'' after the semicolon; and
(B) by striking paragraph (2) and inserting the following:
``(2) the extent and nature of any restrictions or
impediments to the development of the resources, including--
``(A) impediments to the timely granting of leases;
``(B) post-lease restrictions, impediments, or delays on
development for conditions of approval, applications for
permits to drill, or processing of environmental permits; and
``(C) permits or restrictions associated with transporting
the resources for entry into commerce; and
``(3) the quantity of resources not produced or introduced
into commerce because of the restrictions.'';
(2) in subsection (b)--
(A) by striking ``reserve'' and inserting ``resource''; and
(B) by striking ``publically'' and inserting ``publicly'';
and
(3) by striking subsection (d) and inserting the following:
``(d) Assessments.--Using the inventory, the Secretary of
Energy shall make periodic assessments of economically
recoverable resources accounting for a range of parameters
such as current costs, commodity prices, technology, and
regulations.''.
(b) Methodology.--The Secretary of the Interior shall use
the same assessment methodology across all geological
provinces, areas, and regions in preparing and issuing
national geological assessments to ensure accurate
comparisons of geological resources.

[[Page H2310]]

SEC. 2026. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS
CONCERNING REGULATIONS THAT SIGNIFICANTLY
AFFECT ENERGY SUPPLY, DISTRIBUTION, OR USE.

(a) Requirement.--The head of each Federal agency shall
require that before the Federal agency takes any action that
could have a significant adverse effect on the supply of
domestic energy resources from Federal public land, the
Federal agency taking the action shall comply with Executive
Order No. 13211 (42 U.S.C. 13201 note).
(b) Guidance.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall publish
guidance for purposes of this section describing what
constitutes a significant adverse effect on the supply of
domestic energy resources under Executive Order No. 13211 (42
U.S.C. 13201 note).
(c) Memorandum of Understanding.--The Secretary of the
Interior and the Secretary of Agriculture shall include in
the memorandum of understanding under section 2024 provisions
for implementing subsection (a) of this section.

SEC. 2027. PILOT PROJECT TO IMPROVE FEDERAL PERMIT
COORDINATION.

(a) Establishment.--The Secretary of the Interior (in this
section referred to as the ``Secretary'') shall establish a
Federal Permit Streamlining Pilot Project (in this section
referred to as the ``Pilot Project'').
(b) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding with the Secretary of
Agriculture, the Administrator of the Environmental
Protection Agency, and the Chief of Engineers of the Army
Corps of Engineers for purposes of this section.
(2) State participation.--The Secretary may request that
the Governors of Wyoming, Montana, Colorado, Utah, and New
Mexico be signatories to the memorandum of understanding.
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date of
the signing of the memorandum of understanding under
subsection (b), all Federal signatory parties shall assign to
each of the field offices identified in subsection (d), on a
nonreimbursable basis, an employee who has expertise in the
regulatory issues relating to the office in which the
employee is employed, including, as applicable, particular
expertise in--
(A) the consultations and the preparation of biological
opinions under section 7 of the Endangered Species Act of
1973 (16 U.S.C. 1536);
(B) permits under section 404 of Federal Water Pollution
Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42 U.S.C.
7401 et seq.);
(D) planning under the National Forest Management Act of
1976 (16 U.S.C. 472a et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) not later than 90 days after the date of assignment,
report to the Bureau of Land Management Field Managers in the
office to which the employee is assigned;
(B) be responsible for all issues relating to the
jurisdiction of the home office or agency of the employee;
and
(C) participate as part of the team of personnel working on
proposed energy projects, planning, and environmental
analyses.
(d) Field Offices.--The following Bureau of Land Management
Field Offices shall serve as the Pilot Project offices:
(1) Rawlins, Wyoming.
(2) Buffalo, Wyoming.
(3) Miles City, Montana
(4) Farmington, New Mexico.
(5) Carlsbad, New Mexico.
(6) Glenwood Springs, Colorado.
(7) Vernal, Utah.
(e) Reports.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall transmit to
Congress a report that--
(1) outlines the results of the Pilot Project to date; and
(2) makes a recommendation to the President regarding
whether the Pilot Project should be implemented throughout
the United States.
(f) Additional Personnel.--The Secretary shall assign to
each field office identified in subsection (d) any additional
personnel that are necessary to ensure the effective
implementation of--
(1) the Pilot Project; and
(2) other programs administered by the field offices,
including inspection and enforcement relating to energy
development on Federal land, in accordance with the multiple
use mandate of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq).
(g) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency whose employees are participating in the Pilot
Project.

SEC. 2028. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR
PERMITS.

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended by adding at the end the following:
``(p) Deadlines for Consideration of Applications for
Permits.--
``(1) In general.--Not later than 10 days after the date on
which the Secretary receives an application for any permit to
drill, the Secretary shall--
``(A) notify the applicant that the application is
complete; or
``(B) notify the applicant that information is missing and
specify any information that is required to be submitted for
the application to be complete.
``(2) Issuance or deferral.--Not later than 30 days after
the applicant for a permit has submitted a complete
application, the Secretary shall--
``(A) issue the permit; or
``(B)(i) defer decision on the permit; and
``(ii) provide to the applicant a notice that specifies any
steps that the applicant could take for the permit to be
issued.
``(3) Requirements for deferred applications.--
``(A) In general.--If the Secretary provides notice under
paragraph (2)(B)(ii), the applicant shall have a period of 2
years from the date of receipt of the notice in which to
complete all requirements specified by the Secretary,
including providing information needed for compliance with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
``(B) Issuance of decision on permit.--If the applicant
completes the requirements within the period specified in
subparagraph (A), the Secretary shall issue a decision on the
permit not later than 10 days after the date of completion of
the requirements described in subparagraph (A).
``(C) Denial of permit.--If the applicant does not complete
the requirements within the period specified in subparagraph
(A), the Secretary shall deny the permit.
``(q) Report.--On a quarterly basis, each field office of
the Bureau of Land Management and the Forest Service shall
transmit to the Secretary of the Interior or the Secretary of
Agriculture, respectively, a report that--
``(1) specifies the number of applications for permits to
drill received by the field office in the period covered by
the report; and
``(2) describes how each of the applications was disposed
of by the field office in accordance with subsection (p).''.

SEC. 2029. CLARIFICATION OF FAIR MARKET RENTAL VALUE
DETERMINATIONS FOR PUBLIC LAND AND FOREST
SERVICE RIGHTS-OF-WAY.

(a) Linear Rights-of-Way Under Federal Land Policy and
Management Act of 1976.--Section 504 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1764) is amended
by adding at the end the following:
``(k) Determination of Fair Market Value of Linear Rights-
of-Way.--
``(1) In general.--Effective beginning on the date of the
issuance of the rules required by paragraph (2), for purposes
of subsection (g), the Secretary concerned shall determine
the fair market value for the use of land encumbered by a
linear right-of-way granted, issued, or renewed under this
title using the valuation method described in paragraphs (2),
(3), and (4).
``(2) Revisions.--Not later than 1 year after the date of
enactment of this subsection--
``(A) the Secretary of the Interior shall amend section
2803.1-2 of title 43, Code of Federal Regulations, as in
effect on the date of enactment of this subsection, to revise
the per acre rental fee zone value schedule by State, county,
and type of linear right-of-way use to reflect current values
of land in each zone; and
``(B) the Secretary of Agriculture shall make the same
revision for linear rights-of-way granted, issued, or renewed
under this title on National Forest System land.
``(3) Updates.--The Secretary concerned shall annually
update the schedule revised under paragraph (2) by
multiplying the current year's rental per acre by the annual
change, second quarter to second quarter (June 30 to June 30)
in the Gross National Product Implicit Price Deflator Index
published in the Survey of Current Business of the Department
of Commerce, Bureau of Economic Analysis.
``(4) Review.--If the cumulative change in the index
referred to in paragraph (3) exceeds 30 percent, or the
change in the 3-year average of the 1-year Treasury interest
rate used to determine per acre rental fee zone values
exceeds plus or minus 50 percent, the Secretary concerned
shall conduct a review of the zones and rental per acre
figures to determine whether the value of Federal land has
differed sufficiently from the index referred to in paragraph
(3) to warrant a revision in the base zones and rental per
acre figures. If, as a result of the review, the Secretary
concerned determines that such a revision is warranted, the
Secretary concerned shall revise the base zones and rental
per acre figures accordingly. Any revision of base zones and
rental per acre figure shall only affect lease rental rates
at inception or renewal.''.
(b) Rights-of-Way Under Mineral Leasing Act.--Section 28(l)
of the Mineral Leasing Act (30 U.S.C. 185(l)) is amended by
inserting before the period at the end the following: ``using
the valuation method described in section 2803.1-2 of title
43, Code of Federal Regulations, as revised in accordance
with section 504(k) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1764(k))''.

SEC. 2030. ENERGY FACILITY RIGHTS-OF-WAY AND CORRIDORS ON
FEDERAL LAND.

(a) Report to Congress.--

[[Page H2311]]

(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture and the
Secretary of the Interior, in consultation with the Secretary
of Commerce, the Secretary of Defense, the Secretary of
Energy, and the Federal Energy Regulatory Commission, shall
submit to Congress a joint report--
(A) that addresses--
(i) the location of existing rights-of-way and designated
and de facto corridors for oil, gas, and hydrogen pipelines
and electric transmission and distribution facilities on
Federal land; and
(ii) opportunities for additional oil, gas, and hydrogen
pipeline and electric transmission capacity within those
rights-of-way and corridors; and
(B) that includes a plan for making available, on request,
to the appropriate Federal, State, and local agencies, tribal
governments, and other persons involved in the siting of oil,
gas, and hydrogen pipelines and electricity transmission
facilities Geographic Information System-based information
regarding the location of the existing rights-of-way and
corridors and any planned rights-of-way and corridors.
(2) Consultations and considerations.--In preparing the
report, the Secretary of the Interior and the Secretary of
Agriculture shall consult with--
(A) other agencies of Federal, State, tribal, or local
units of government, as appropriate;
(B) persons involved in the siting of oil, gas, and
hydrogen pipelines and electric transmission facilities; and
(C) other interested members of the public.
(3) Limitation.--The Secretary of the Interior and the
Secretary of Agriculture shall limit the distribution of the
report and Geographic Information System-based information
referred to in paragraph (1) as necessary for national and
infrastructure security reasons, if either Secretary
determines that the information may be withheld from public
disclosure under a national security or other exception under
section 552(b) of title 5, United States Code.
(b) Corridor Designations.--
(1) 11 contiguous western states.--Not later than 2 years
after the date of enactment of this Act, the Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, in consultation with the Federal Energy Regulatory
Commission and the affected utility industries, shall
jointly--
(A) designate, under title V of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1761 et seq.) and other
applicable Federal laws, corridors for oil, gas, and hydrogen
pipelines and electricity transmission and facilities on
Federal land in the eleven contiguous Western States (as
defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702));
(B) perform any environmental reviews that may be required
to complete the designations of corridors for the facilities
on Federal land in the eleven contiguous Western States; and
(C) incorporate the designated corridors into--
(i) the relevant departmental and agency land use and
resource management plans; or
(ii) equivalent plans.
(2) Other states.--Not later than 4 years after the date of
enactment of this Act, the Secretary of Agriculture, the
Secretary of Commerce, the Secretary of Defense, the
Secretary of Energy, and the Secretary of the Interior, in
consultation with the Federal Energy Regulatory Commission
and the affected utility industries, shall jointly--
(A) identify corridors for oil, gas, and hydrogen pipelines
and electricity transmission and distribution facilities on
Federal land in the States other than those described in
paragraph (1); and
(B) schedule prompt action to identify, designate, and
incorporate the corridors into the land use plan.
(3) Ongoing responsibilities.--The Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, with respect to lands under their respective
jurisdictions, in consultation with the Federal Energy
Regulatory Commission and the affected utility industries,
shall establish procedures that--
(A) ensure that additional corridors for oil, gas, and
hydrogen pipelines and electricity transmission and
distribution facilities on Federal land are promptly
identified and designated; and
(B) expedite applications to construct or modify oil, gas,
and hydrogen pipelines and electricity transmission and
distribution facilities within the corridors, taking into
account prior analyses and environmental reviews undertaken
during the designation of corridors.
(c) Considerations.--In carrying out this section, the
Secretaries shall take into account the need for upgraded and
new electricity transmission and distribution facilities to--
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to deliver
electricity.
(d) Definition of Corridor.--
(1) In general.--In this section and title V of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761 et
seq.), the term ``corridor'' means--
(A) a linear strip of land--
(i) with a width determined with consideration given to
technological, environmental, and topographical factors; and
(ii) that contains, or may in the future contain, 1 or more
utility, communication, or transportation facilities;
(B) a land use designation that is established--
(i) by law;
(ii) by Secretarial Order;
(iii) through the land use planning process; or
(iv) by other management decision; and
(C) a designation made for the purpose of establishing the
preferred location of compatible linear facilities and land
uses.
(2) Specifications of corridor.--On designation of a
corridor under this section, the centerline, width, and
compatible uses of a corridor shall be specified.

SEC. 2031. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON
PUBLIC LAND.

(a) Memorandum of Understanding.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Energy, in
consultation with the Secretary of the Interior, the
Secretary of Agriculture, and the Secretary of Defense with
respect to lands under their respective jurisdictions, shall
enter into a memorandum of understanding to coordinate all
applicable Federal authorizations and environmental reviews
relating to a proposed or existing utility facility. To the
maximum extent practicable under applicable law, the
Secretary of Energy shall, to ensure timely review and permit
decisions, coordinate such authorizations and reviews with
any Indian tribes, multi-State entities, and State agencies
that are responsible for conducting any separate permitting
and environmental reviews of the affected utility facility.
(2) Contents.--The memorandum of understanding shall
include provisions that--
(A) establish--
(i) a unified right-of-way application form; and
(ii) an administrative procedure for processing right-of-
way applications, including lines of authority, steps in
application processing, and timeframes for application
processing;
(B) provide for coordination of planning relating to the
granting of the rights-of-way;
(C) provide for an agreement among the affected Federal
agencies to prepare a single environmental review document to
be used as the basis for all Federal authorization decisions;
and
(D) provide for coordination of use of right-of-way
stipulations to achieve consistency.
(b) Natural Gas Pipelines.--
(1) In general.--With respect to permitting activities for
interstate natural gas pipelines, the May 2002 document
entitled ``Interagency Agreement On Early Coordination Of
Required Environmental And Historic Preservation Reviews
Conducted In Conjunction With The Issuance Of Authorizations
To Construct And Operate Interstate Natural Gas Pipelines
Certificated By The Federal Energy Regulatory Commission''
shall constitute compliance with subsection (a).
(2) Report.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter, agencies
that are signatories to the document referred to in paragraph
(1) shall transmit to Congress a report on how the agencies
under the jurisdiction of the Secretaries are incorporating
and implementing the provisions of the document referred to
in paragraph (1).
(B) Contents.--The report shall address--
(i) efforts to implement the provisions of the document
referred to in paragraph (1);
(ii) whether the efforts have had a streamlining effect;
(iii) further improvements to the permitting process of the
agency; and
(iv) recommendations for inclusion of State and tribal
governments in a coordinated permitting process.
(c) Definition of Utility Facility.--In this section, the
term ``utility facility'' means any privately, publicly, or
cooperatively owned line, facility, or system--
(1) for the transportation of--
(A) oil, natural gas, synthetic liquid fuel, or gaseous
fuel;
(B) any refined product produced from oil, natural gas,
synthetic liquid fuel, or gaseous fuel; or
(C) products in support of the production of material
referred to in subparagraph (A) or (B);
(2) for storage and terminal facilities in connection with
the production of material referred to in paragraph (1); or
(3) for the generation, transmission, and distribution of
electric energy.

SEC. 2032. ELECTRICITY TRANSMISSION LINE RIGHT-OF-WAY,
CLEVELAND NATIONAL FOREST AND ADJACENT PUBLIC
LAND, CALIFORNIA.

(a) Issuance.--
(1) In general.--Not later than 60 days after the
completion of the environmental reviews under subsection (c),
the Secretary of the Interior and the Secretary of
Agriculture shall issue all necessary grants, easements,
permits, plan amendments, and other approvals to allow for
the siting and construction of a high-voltage electricity
transmission line right-of-way running approximately north to
south through the Trabuco Ranger District of the Cleveland
National Forest in the State of California and adjacent lands
under the jurisdiction of the Bureau of Land Management and
the Forest Service.

[[Page H2312]]

(2) Inclusions.--The right-of-way approvals under paragraph
(1) shall provide all necessary Federal authorization from
the Secretary of the Interior and the Secretary of
Agriculture for the routing, construction, operation, and
maintenance of a 500-kilovolt transmission line capable of
meeting the long-term electricity transmission needs of the
region between the existing Valley-Serrano transmission line
to the north and the Telega-Escondido transmission line to
the south, and for connecting to future generating capacity
that may be developed in the region.
(b) Protection of Wilderness Areas.--The Secretary of the
Interior and the Secretary of Agriculture shall not allow any
portion of a transmission line right-of-way corridor
identified in subsection (a) to enter any identified
wilderness area in existence as of the date of enactment of
this Act.
(c) Environmental and Administrative Reviews.--
(1) Department of interior or local agency.--The Secretary
of the Interior, acting through the Director of the Bureau of
Land Management, shall be the lead Federal agency with
overall responsibility to ensure completion of required
environmental and other reviews of the approvals to be issued
under subsection (a).
(2) National forest system land.--For the portions of the
corridor on National Forest System lands, the Secretary of
Agriculture shall complete all required environmental reviews
and administrative actions in coordination with the Secretary
of the Interior.
(3) Expeditious completion.--The reviews required for
issuance of the approvals under subsection (a) shall be
completed not later than 1 year after the date of enactment
of this Act.
(d) Other Terms and Conditions.--The transmission line
right-of-way shall be subject to such terms and conditions as
the Secretary of the Interior and the Secretary of
Agriculture consider necessary, based on the environmental
reviews under subsection (c), to protect the value of
historic, cultural, and natural resources under the
jurisdiction of the Secretary of the Interior or the
Secretary of Agriculture.
(e) Preference Among Proposals.--The Secretary of the
Interior and the Secretary of Agriculture shall give a
preference to any application or preapplication proposal for
a transmission line right-of-way referred to in subsection
(a) that was submitted before December 31, 2002, over all
other applications and proposals for the same or a similar
right-of-way submitted on or after that date.

SEC. 2033. SENSE OF CONGRESS REGARDING DEVELOPMENT OF
MINERALS UNDER PADRE ISLAND NATIONAL SEASHORE.

(a) Findings.--Congress finds the following:
(1) Pursuant to Public Law 87-712 (16 U.S.C. 459d et seq.;
popularly known as the ``Federal Enabling Act'') and various
deeds and actions under that Act, the United States is the
owner of only the surface estate of certain lands
constituting the Padre Island National Seashore.
(2) Ownership of the oil, gas, and other minerals in the
subsurface estate of the lands constituting the Padre Island
National Seashore was never acquired by the United States,
and ownership of those interests is held by the State of
Texas and private parties.
(3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
(A) expressly contemplated that the United States would
recognize the ownership and future development of the oil,
gas, and other minerals in the subsurface estate of the lands
constituting the Padre Island National Seashore by the owners
and their mineral lessees; and
(B) recognized that approval of the State of Texas was
required to create Padre Island National Seashore.
(4) Approval was given for the creation of Padre Island
National Seashore by the State of Texas through Tex. Rev.
Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly
recognized that development of the oil, gas, and other
minerals in the subsurface of the lands constituting Padre
Island National Seashore would be conducted with full rights
of ingress and egress under the laws of the State of Texas.
(b) Sense of Congress.--It is the sense of Congress that
with regard to Federal law, any regulation of the development
of oil, gas, or other minerals in the subsurface of the lands
constituting Padre Island National Seashore should be made as
if those lands retained the status that the lands had on
September 27, 1962.

SEC. 2034. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.

(a) Amendments.--Section 102 of Public Law 102-562 (106
Stat. 4234) is amended--
(1) by striking ``(a) In General.--'';
(2) by striking ``and subject to the reservation in
subsection (b),''; and
(3) by striking subsection (b).
(b) Implementation of Amendment.--The Secretary of the
Interior shall execute the legal instruments necessary to
effectuate the amendment made by subsection (a)(3).

Subtitle C--Naval Petroleum Reserves

SEC. 2041. TRANSFER OF ADMINISTRATIVE JURISDICTION AND
ENVIRONMENTAL REMEDIATION, NAVAL PETROLEUM
RESERVE NUMBERED 2, KERN COUNTY, CALIFORNIA.

(a) Administration Jurisdiction Transfer to Secretary of
the Interior.--Effective on the date of the enactment of this
Act, administrative jurisdiction and control over all public
domain lands included within Naval Petroleum Reserve Numbered
2 located in Kern County, California, (other than the lands
specified in subsection (b)) are transferred from the
Secretary of Energy to the Secretary of the Interior for
management, subject to subsection (c), in accordance with the
general land laws.
(b) Exclusion of Certain Reserve Lands.--The transfer of
administrative jurisdiction made by subsection (a) does not
include the following lands:
(1) That portion of Naval Petroleum Reserve Numbered 2
authorized for disposal under section 3403(a) of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105-261; 10 U.S.C. 7420 note).
(2) That portion of the surface estate of Naval Petroleum
Reserve Numbered 2 conveyed to the City of Taft, California,
by section 2042 of this Act.
(c) Purpose of Transfer.--Notwithstanding any other
provision of law, the principle purpose of the lands subject
to transfer under subsection (a) is the production of
hydrocarbon resources, and the Secretary of the Interior
shall manage the lands in a fashion consistent with this
purpose. In managing the lands, the Secretary of the Interior
shall regulate operations only to prevent unnecessary
degradation and to provide for ultimate economic recovery of
the resources.
(d) Conforming Amendment.--Section 3403 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105-261; 10 U.S.C 7420 note) is amended by
striking subsection (b).

SEC. 2042. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM
RESERVE NUMBERED 2, TO CITY OF TAFT,
CALIFORNIA.

(a) Conveyance.--Effective on the date of the enactment of
this Act, there is conveyed to the City of Taft, California
(in this section referred to as the ``City''), all surface
right, title, and interest of the United States in and to a
parcel of real property consisting of approximately 167 acres
located in the N\1/2\ of section 18, township 32 south, range
24 east, Mount Diablo meridian, more fully described as
Parcels 1 and 2 according to the Record of Survey filed on
July 1, 1974, in Book 11 of Record Surveys at page 68, County
of Kern, State of California.
(b) Consideration.--The conveyance under subsection (a) is
made without the payment of consideration by the City.
(c) Treatment of Existing Rights.--The conveyance under
subsection (a) is subject to valid existing rights, including
Federal oil and gas lease SAC--019577.
(d) Treatment of Minerals.--All coal, oil, gas, and other
minerals within the lands conveyed under subsection (a) are
reserved to the United States, except that the United States
and its lessees, licensees, permittees, or assignees shall
have no right of surface use or occupancy of the lands.
Nothing in this subsection shall be construed to require the
United States or its lessees, licensees, permittees, or
assignees to support the surface of the conveyed lands.
(e) Indemnify and Hold Harmless.--The City shall indemnify,
defend, and hold harmless the United States for, from, and
against, and the City shall assume all responsibility for,
any and all liability of any kind or nature, including all
loss, cost, expense, or damage, arising from the City's use
or occupancy of, or operations on, the land conveyed under
subsection (a), whether such use or occupancy of, or
operations on, occurred before or occur after the date of the
enactment of this Act.
(f) Instrument of Conveyance.--Not later than one year
after the date of the enactment of this Act, the Secretary of
Energy shall execute, file, and cause to be recorded in the
appropriate office a deed or other appropriate instrument
documenting the conveyance made by this section.

SEC. 2043. REVOCATION OF LAND WITHDRAWAL.

Effective on the date of the enactment of this Act, the
Executive Order of December 13, 1912, which created Naval
Petroleum Reserve Numbered 2, is revoked in its entirety.

SEC. 2044. EFFECT OF TRANSFER AND CONVEYANCE.

Nothing in this Act shall be construed----
(1) to impose on the Secretary of Energy any new liability
or responsibility that the Secretary of Energy did not bear
before the date of the enactment of this Act; or
(2) to increase the level of responsibility of the
Secretary of Energy with respect to any responsibility borne
by the Secretary of Energy before that date.

Subtitle D--Miscellaneous Provisions

SEC. 2051. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND
DEVELOPMENT PRACTICES.

(a) Review.--In consultation with affected private surface
owners, oil and gas industry, and other interested parties,
the Secretary of the Interior shall undertake a review of the
current policies and practices with respect to management of
Federal subsurface oil and gas development activities and
their effects on the privately owned surface. This review
shall include--
(1) a comparison of the rights and responsibilities under
existing mineral and land law for the owner of a Federal
mineral lease, the private surface owners and the Department;

[[Page H2313]]

(2) a comparison of the surface owner consent provisions in
section 714 of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1304) concerning surface mining of Federal
coal deposits and the surface owner consent provisions for
oil and gas development, including coalbed methane
production; and
(3) recommendations for administrative or legislative
action necessary to facilitate reasonable access for Federal
oil and gas activities while addressing surface owner
concerns and minimizing impacts to private surface.
(b) Report.--The Secretary of the Interior shall report the
results of such review to Congress not later than 180 days
after the date of enactment of this Act.

SEC. 2052. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER
CONTINENTAL SHELF LANDS ACT.

(a) Royalty Relief.--
(1) In general.--For purposes of providing compensation for
lessees and a State for which amounts are authorized by
section 6004(c) of the Oil Pollution Act of 1990 (Public Law
101-380), a lessee may withhold from payment any royalty due
and owing to the United States under any leases under the
Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.)
for offshore oil or gas production from a covered lease tract
if, on or before the date that the payment is due and payable
to the United States, the lessee makes a payment to the State
of 44 cents for every $1 of royalty withheld.
(2) Treatment of amounts.--Any royalty withheld by a lessee
in accordance with this section (including any portion
thereof that is paid to the State under paragraph (1)) shall
be treated as paid for purposes of satisfaction of the
royalty obligations of the lessee to the United States.
(3) Certification of withheld amounts.--The Secretary of
the Treasury shall--
(A) determine the amount of royalty withheld by a lessee
under this section; and
(B) promptly publish a certification when the total amount
of royalty withheld by the lessee under this section is equal
to--
(i) the dollar amount stated at page 47 of Senate Report
number 101-534, which is designated therein as the total
drainage claim for the West Delta field; plus
(ii) interest as described at page 47 of that Report.
(b) Period of Royalty Relief.--Subsection (a) shall apply
to royalty amounts that are due and payable in the period
beginning on January 1, 2006, and ending on the date on which
the Secretary of the Treasury publishes a certification under
subsection (a)(4)(B).
(c) Definitions.--As used in this section:
(1) Covered lease tract.--The term ``covered lease tract''
means a leased tract (or portion of a leased tract)--
(A) lying seaward of the zone defined and governed by
section 8(g) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g)); or
(B) lying within such zone but to which such section does
not apply.
(2) Lessee.--The term ``lessee''--
(A) means a person or entity that, on the date of the
enactment of the Oil Pollution Act of 1990, was a lessee
referred to in section 6004(c) of that Act (as in effect on
that date of the enactment), but did not hold lease rights in
Federal offshore lease OCS-G-5669; and
(B) includes successors and affiliates of a person or
entity described in subparagraph (A).

SEC. 2053. DOMESTIC OFFSHORE ENERGY REINVESTMENT.

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding at the end the following:

``SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT PROGRAM.

``(a) Definitions.--In this section:
``(1) Coastal energy state.--The term `Coastal Energy
State' means a Coastal State off the coastline of which,
within the seaward lateral boundary as determined under
section 4, outer Continental Shelf bonus bids or royalties
are generated.
``(2) Coastal political subdivision.--The term `coastal
political subdivision' means a county, parish, or other
equivalent subdivision of a Coastal Energy State, all or part
of which lies within the boundaries of the coastal zone of
the State, as identified in the State's approved coastal zone
management program under the Coastal Zone Management Act of
1972 (16 U.S.C. 1451 et seq.) on the date of the enactment of
this section.
``(3) Coastal population.--The term `coastal population'
means the population of a coastal political subdivision, as
determined by the most recent official data of the Census
Bureau.
``(4) Coastline.--The term `coastline' has the same meaning
as the term `coast line' in subsection 2(c) of the Submerged
Lands Act (43 U.S.C. 1301(c)).
``(5) Fund.--The term `Fund' means the Secure Energy
Reinvestment Fund established by this section.
``(6) Leased tract.--The term `leased tract' means a tract
maintained under section 6 or leased under section 8 for the
purpose of drilling for, developing, and producing oil and
natural gas resources.
``(7) Qualified outer continental shelf revenues.--The term
`qualified outer Continental Shelf revenues' means all
amounts received by the United States on or after October 1,
2005, from each leased tract or portion of a leased tract
lying seaward of the zone defined and governed by section
8(g), or lying within such zone but to which section 8(g)
does not apply, including bonus bids, rents, royalties
(including payments for royalties taken in kind and sold),
net profit share payments, and related interest.
``(8) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(b) Secure Energy Reinvestment Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a separate account which shall be known
as the `Secure Energy Reinvestment Fund'. The Fund shall
consist of amounts deposited under paragraph (2).
``(2) Deposits.--For each of fiscal years 2006 through
2015, the Secretary of the Treasury shall deposit into the
Fund, subject to appropriations, the following:
``(A) Notwithstanding section 9, all qualified outer
Continental Shelf revenues attributable to royalties received
by the United States in the fiscal year that are in excess of
the following amount:
``(i) $7,000,000,000 in the case of royalties received in
fiscal year 2006.
``(ii) $7,100,000,000 in the case of royalties received in
fiscal year 2007.
``(iii) $7,300,000,000 in the case of royalties received in
fiscal year 2008.
``(iv) $6,900,000,000 in the case of royalties received in
fiscal year 2009.
``(v) $7,200,000,000 in the case of royalties received in
fiscal year 2010.
``(vi) $7,250,000,000 in the case of royalties received in
fiscal year 2011.
``(vii) $8,125,000,000 in the case of royalties received in
fiscal year 2012.
``(viii) $8,100,000,000 in the case of royalties received
in fiscal year 2013.
``(ix) $9,000,000,000 in the case of royalties received in
fiscal year 2014.
``(x) $7,500,000,000 in the case of royalties received in
fiscal year 2015.
``(B) Notwithstanding section 9, all qualified outer
Continental shelf revenues attributable to bonus bids
received by the United States in each of the fiscal years
2006 through 2015 that are in excess of $880,000,000.
``(C) Notwithstanding section 9, in addition to amounts
deposited under subparagraphs (A) and (B), $35,000,000 of
amounts received by the United States each fiscal year as
royalties for oil or gas production on the outer Continental
Shelf.
``(D) All interest earned under paragraph (4).

In no event shall deposits under subparagraphs (A) through
(C) total more than $50,000,000 per fiscal year.
``(3) Deposits after fiscal year 2015.--For each fiscal
year after fiscal year 2015, the Secretary of the Treasury
shall deposit into the Fund the following:
``(A) 25 percent of qualified outer Continental Shelf
revenues received by the United States in the preceding
fiscal year.
``(B) All interest earned under paragraph (4).
``(4) Investment.--The Secretary of the Treasury shall
invest moneys in the Fund (including interest) in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary of the Treasury, and bearing
interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturity. Such invested moneys shall remain
invested until needed to meet requirements for disbursement
under this section.
``(c) Use of Secure Energy Reinvestment Fund.--
``(1) In general.--(A) The Secretary shall use amounts in
the Fund remaining after the application of subsection (d) to
pay to each Coastal Energy State, and to coastal political
subdivisions of such State, the amount allocated to the State
or coastal political subdivision, respectively, under this
subsection.
``(B) The Secretary shall make payments under this
paragraph in December of 2006, and of each year thereafter,
from revenues received by the United States in the preceding
fiscal year.
``(2) Allocation.--The Secretary shall allocate amounts
deposited into the Fund in a fiscal year, and other amounts
determined by the Secretary to be available, among Coastal
Energy States, and to coastal political subdivisions of such
States, as follows:
``(A)(i) The allocation for each Coastal Energy State shall
be calculated based on the ratio of qualified outer
Continental Shelf revenues generated off the coastline of the
Coastal Energy State to the qualified outer Continental Shelf
revenues generated off the coastlines of all Coastal Energy
States for the preceding fiscal year.
``(ii) For purposes of this subparagraph, qualified outer
Continental Shelf revenues shall be considered to be
generated off the coastline of a Coastal Energy State if the
geographic center of the lease tract from which the revenues
are generated is located within the area formed by the
extension of the State's seaward lateral boundaries.
``(B) 35 percent of each Coastal Energy State's allocable
share as determined under subparagraph (A) shall be allocated
among and paid directly to the coastal political subdivisions
of the State by the Secretary based on the following formula:
``(i) 25 percent shall be allocated based on the ratio of
each coastal political subdivision's coastal population to
the coastal population of all coastal political subdivisions
of the Coastal Energy State.

[[Page H2314]]

``(ii) 25 percent shall be allocated based on the ratio of
each coastal political subdivision's coastline miles to the
coastline miles of all coastal political subdivisions of the
State. In the case of a coastal political subdivision without
a coastline, the coastline of the political subdivision for
purposes of this clause shall be one-third the average length
of the coastline of the other coastal political subdivisions
of the State.
``(iii) 50 percent shall be allocated based on a formula
that allocates 75 percent of the funds based on such coastal
political subdivision's relative distance from any leased
tract used to calculate that State's allocation and 25
percent of the funds based on the relative level of outer
Continental Shelf oil and gas activities in a coastal
political subdivision to the level of outer Continental Shelf
oil and gas activities in all coastal political subdivisions
in such State, as determined by the Secretary.
``(d) Administrative Expenses.--Of amounts in the Fund each
fiscal year, the Secretary may use up to one-half of one
percent for the administrative costs of implementing this
section.
``(e) Disposition of Funds.--A Coastal Energy State or
coastal political subdivision may use funds provided to such
entity under this section for any payment that is eligible to
be made with funds provided to States under section 35 of the
Mineral Leasing Act (30 U.S.C. 191).''.

SEC. 2054. REPURCHASE OF LEASES THAT ARE NOT ALLOWED TO BE
EXPLORED OR DEVELOPED.

(a) Authority to Repurchase and Cancel Certain Leases.--
Notwithstanding any other provisions of law, any Federal oil
and gas, geothermal, coal, oil shale, or tar sands lease,
whether onshore or offshore, issued by the Secretary, or
units of such leases if unitized, that by operation of law,
including but not limited to denial of a permit request, (1)
is not allowed to be explored in the lawful manner requested
by the lessee, or (2) if explored resulting in a commercial
discovery is not allowed to be developed or produced in the
lawful manner requested by the lessee, shall, upon the
written request of the lessee and a finding by the Secretary
that such lease qualifies, be authorized for repurchase and
cancelled by the Secretary. If a permit, approval, or appeal
has been expressly denied and the proposal of the lessee is
found by the Secretary not to have been in compliance with
law, the lessee shall not be entitled to have the lease
repurchased and cancelled. However, if the lessee alleges
that the Government has failed to act on a proposal of the
lessee within the applicable period of time, the Secretary
shall make no inquiry or determination as to whether the
contents of the request complied with the law, and the
Secretary shall restrict the Secretary's findings to whether
or not the Government failed to act within the applicable
period of time. The Secretary shall make all decisions under
this section within 180 days of request. The area covered by
any repurchased and cancelled lease shall remain available
for future leasing unless otherwise prohibited by law. For
purposes of this section, failure to act within a regulatory
or statutory time-frame, whether advisory or mandatory, or if
none, within a reasonable period of time not to exceed 180
days, on a permit request, administrative appeal, or other
request for approval, shall be considered to meet the
operation of law requirements of this section. Further,
conditions of approval attached to permit approvals shall
meet the operation of law requirement of this section if such
conditions are not mandated by statute or regulation and not
agreed to by the lessee. A lessee shall not be required to
exhaust administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
for the purposes of this section.
(b) Determination of a Commercial Discovery.--The Secretary
shall make any required determination of the existence of a
commercial resource discovery. For oil and gas, a commercial
discovery is a discovery in paying quantities. The Secretary
shall be guided in such a determination by precedent, and by
written advice, including input from the lessee.
(c) Compensation.--Upon authorization by the Secretary of
the repurchase of a lease under this section, a lessee shall
be compensated in the amount of the total of lease
acquisition costs, rentals, seismic acquisition costs,
archeological and environmental studies, drilling costs, and
other reasonable expenses on the lease, including expenses
incurred in the repurchase process, to the extent that the
lessee has not previously been compensated by the United
States for such expenses. The lessee shall not be compensated
for general overhead expenses, employee salaries, or
interest. If the lessee is an assignee, the lessee may not
claim the expenses of his assignor. Compensation shall be in
the form of a check or electronic transfer from the
Department of the Treasury from funds deposited into
miscellaneous receipts under the authority of the same Act
that authorized the issuance of the lease being repurchased.
If the Secretary fails to make the repurchase authorization
decision under subsection (a) within the required 180 days
and the lease is ultimately repurchased, the compensation due
to the lessee shall increase by 25 percent, plus 1 percent
for every seven days that the decision is delayed beyond the
required 180 days.
(d) Delegation of Authority and Finality of Decisions.--The
Secretary may delegate authority granted by this section only
to individuals who have been appointed by the President, by
and with the advice and consent of the Senate. A decision
under this section by the Secretary, or delegated official,
shall be considered the final agency decision.
(e) Regulations.--The Secretary shall issue reasonable
regulations implementing this section not later than 1 year
after date of enactment of this Act.
(f) Secretary.--For purposes of this section, the term
``Secretary'' means the Secretary of the Interior.
(g) No Prejudice.--This section shall not be interpreted to
prejudice any other rights that the lessee would have in the
absence of this section.

TITLE XXI--COAL

SEC. 2101. SHORT TITLE.

This title may be cited as the ``Coal Leasing Amendments
Act of 2005''.

SEC. 2102. LEASE MODIFICATIONS FOR CONTIGUOUS COAL LANDS OR
COAL DEPOSITS.

Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is
amended in the first sentence by striking ``such lease,'' and
all that follows through the end of the sentence and
inserting ``such lease.''.

SEC. 2103. APPROVAL OF LOGICAL MINING UNITS.

Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C.
202a(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) The Secretary may establish a period of more than 40
years if the Secretary determines that the longer period--
``(i) will ensure the maximum economic recovery of a coal
deposit; or
``(ii) the longer period is in the interest of the orderly,
efficient, or economic development of a coal resource.''.

SEC. 2104. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

(a) In General.--Section 7(b) of the Mineral Leasing Act
(30 U.S.C. 207(b)) is amended to read as follows:
``(b)(1) Each lease shall be subjected to the condition of
diligent development and continued operation of the mine or
mines, except where operations under the lease are
interrupted by strikes, the elements, or casualties not
attributable to the lessee.
``(2)(A) The Secretary of the Interior, upon determining
that the public interest will be served thereby, may suspend
the condition of continued operation upon the payment of
advance royalties.
``(B) Such advance royalties shall be computed--
``(i) based on--
``(I) the average price in the spot market for sales of
comparable coal from the same region during the last month of
each applicable continued operation year; or
``(II) in the absence of a spot market for comparable coal
from the same region, by using a comparable method
established by the Secretary of the Interior to capture the
commercial value of coal; and
``(ii) based on commercial quantities, as defined by
regulation by the Secretary of the Interior.
``(C) The aggregate number of years during the initial and
any extended term of any lease for which advance royalties
may be accepted in lieu of the condition of continued
operation shall not exceed 20.
``(3) The amount of any production royalty paid for any
year shall be reduced (but not below zero) by the amount of
any advance royalties paid under such lease to the extent
that such advance royalties have not been used to reduce
production royalties for a prior year.
``(4) This subsection shall be applicable to any lease or
logical mining unit in existence on the date of the enactment
of this paragraph or issued or approved after such date.
``(5) Nothing in this subsection shall be construed to
affect the requirement contained in the second sentence of
subsection (a) relating to commencement of production at the
end of 10 years.''.
(b) Authority to Waive, Suspend, or Reduce Advance
Royalties.--Section 39 of the Mineral Leasing Act (30 U.S.C.
209) is amended by striking the last sentence.

SEC. 2105. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL
LEASE OPERATION AND RECLAMATION PLAN.

Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c))
is amended by striking ``and not later than three years after
a lease is issued,''.

SEC. 2106. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH
RESPECT TO BONUS BIDS.

Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a))
is amended by adding at the end the following:
``(4)(A) The Secretary shall not require a surety bond or
any other financial assurance to guarantee payment of
deferred bonus bid installments with respect to any coal
lease issued on a cash bonus bid to a lessee or successor in
interest having a history of a timely payment of noncontested
coal royalties and advanced coal royalties in lieu of
production (where applicable) and bonus bid installment
payments.
``(B) The Secretary may waive any requirement that a lessee
provide a surety bond or other financial assurance for a coal
lease issued before the date of the enactment of the Energy
Policy Act of 2005 only if the Secretary determines that the
lessee has a history of making timely payments referred to in
subparagraph (A).
``(5) Notwithstanding any other provision of law, if the
lessee under a coal lease fails to

[[Page H2315]]

pay any installment of a deferred cash bonus bid within 10
days after the Secretary provides written notice that payment
of the installment is past due--
``(A) the lease shall automatically terminate; and
``(B) any bonus payments already made to the United States
with respect to the lease shall not be returned to the lessee
or credited in any future lease sale.''.

SEC. 2107. INVENTORY REQUIREMENT.

(a) Review of Assessments.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, shall review coal assessments and other
available data to identify--
(A) public lands with coal resources;
(B) the extent and nature of any restrictions or
impediments to the development of coal resources on public
lands identified under paragraph (1); and
(C) with respect to areas of such lands for which
sufficient data exists, resources of compliant coal and
supercompliant coal.
(2) Definitions.--For purposes of this subsection--
(A) the term ``compliant coal'' means coal that contains
not less than 1.0 and not more than 1.2 pounds of sulfur
dioxide per million Btu; and
(B) the term ``supercompliant coal'' means coal that
contains less than 1.0 pounds of sulfur dioxide per million
Btu.
(b) Completion and Updating of the Inventory.--The
Secretary--
(1) shall complete the inventory under subsection (a) by
not later than 2 years after the date of enactment of this
Act; and
(2) shall update the inventory as the availability of data
and developments in technology warrant.
(c) Report.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the
Committee on Energy and Natural Resources of the Senate and
make publicly available--
(1) a report containing the inventory under this section,
by not later than 2 years after the effective date of this
section; and
(2) each update of such inventory.

SEC. 2108. APPLICATION OF AMENDMENTS.

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

SEC. 2109. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT
CONFLICTS IN THE POWDER RIVER BASIN.

The Secretary of the Interior shall--
(1) undertake a review of existing authorities to resolve
conflicts between the development of Federal coal and the
development of Federal and non-Federal coalbed methane in the
Powder River Basin in Wyoming and Montana; and
(2) not later than 6 months after the date of enactment of
this Act, report to Congress on alternatives to resolve these
conflicts and an identification of a preferred alternative
with specific legislative language, if any, required to
implement the preferred alternative.

TITLE XXII--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

SEC. 2201. SHORT TITLE.

This title may be cited as the ``Arctic Coastal Plain
Domestic Energy Security Act of 2005''.

SEC. 2202. DEFINITIONS.

In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area identified as such in the map entitled ``Arctic National
Wildlife Refuge'', dated August 1980, as referenced in
section 1002(b) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3142(b)(1)), comprising
approximately 1,549,000 acres, and as described in appendix I
to part 37 of title 50, Code of Federal Regulations.
(2) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.

SEC. 2203. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL
PLAIN.

(a) In General.--The Secretary shall take such actions as
are necessary--
(1) to establish and implement, in accordance with this Act
and acting through the Director of the Bureau of Land
Management in consultation with the Director of the United
States Fish and Wildlife Service, a competitive oil and gas
leasing program under the Mineral Leasing Act (30 U.S.C. 181
et seq.) that will result in an environmentally sound program
for the exploration, development, and production of the oil
and gas resources of the Coastal Plain; and
(2) to administer the provisions of this title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat,
subsistence resources, and the environment, and including, in
furtherance of this goal, by requiring the application of the
best commercially available technology for oil and gas
exploration, development, and production to all exploration,
development, and production operations under this title in a
manner that ensures the receipt of fair market value by the
public for the mineral resources to be leased.
(b) Repeal.--
(1) Repeal.--Section 1003 of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3143) is repealed.
(2) Clerical amendment.--The table of contents in section 1
of such Act is amended by striking the item relating to
section 1003.
(c) Compliance With Requirements Under Certain Other
Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966, the oil and gas
leasing program and activities authorized by this section in
the Coastal Plain are deemed to be compatible with the
purposes for which the Arctic National Wildlife Refuge was
established, and that no further findings or decisions are
required to implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act (16 U.S.C.
3142) and section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is deemed to
satisfy the requirements under the National Environmental
Policy Act of 1969 that apply with respect to prelease
activities, including actions authorized to be taken by the
Secretary to develop and promulgate the regulations for the
establishment of a leasing program authorized by this title
before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the
Secretary shall prepare an environmental impact statement
under the National Environmental Policy Act of 1969 with
respect to the actions authorized by this title that are not
referred to in paragraph (2). Notwithstanding any other law,
the Secretary is not required to identify nonleasing
alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only
identify a preferred action for such leasing and a single
leasing alternative, and analyze the environmental effects
and potential mitigation measures for those two alternatives.
The identification of the preferred action and related
analysis for the first lease sale under this title shall be
completed within 18 months after the date of enactment of
this Act. The Secretary shall only consider public comments
that specifically address the Secretary's preferred action
and that are filed within 20 days after publication of an
environmental analysis. Notwithstanding any other law,
compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this title.
(d) Relationship to State and Local Authority.--Nothing in
this title shall be considered to expand or limit State and
local regulatory authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and
interest so as to require special management and regulatory
protection. The Secretary shall designate as such a Special
Area the Sadlerochit Spring area, comprising approximately
4,000 acres as depicted on the map referred to in section
2202(1).
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy
of the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or
a portion of a Special Area under terms that permit the use
of horizontal drilling technology from sites on leases
located outside the area.
(f) Limitation on Closed Areas.--The Secretary's sole
authority to close lands within the Coastal Plain to oil and
gas leasing and to exploration, development, and production
is that set forth in this title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data
that come to the Secretary's attention.

SEC. 2204. LEASE SALES.

(a) In General.--Lands may be leased pursuant to this title
to any person qualified to obtain a lease for deposits of oil
and gas under the Mineral Leasing Act (30 U.S.C. 181 et
seq.).
(b) Procedures.--The Secretary shall, by regulation,
establish procedures for--

[[Page H2316]]

(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this title
shall be by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale
under this title, the Secretary shall offer for lease those
tracts the Secretary considers to have the greatest potential
for the discovery of hydrocarbons, taking into consideration
nominations received pursuant to subsection (b)(1), but in no
case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this title within 22
months after the date of the enactment of this Act; and
(2) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's
judgment, the conduct of such sales.

SEC. 2205. GRANT OF LEASES BY THE SECRETARY.

(a) In General.--The Secretary may grant to the highest
responsible qualified bidder in a lease sale conducted
pursuant to section 2204 any lands to be leased on the
Coastal Plain upon payment by the lessee of such bonus as may
be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title
may be sold, exchanged, assigned, sublet, or otherwise
transferred except with the approval of the Secretary. Prior
to any such approval the Secretary shall consult with, and
give due consideration to the views of, the Attorney General.

SEC. 2206. LEASE TERMS AND CONDITIONS.

(a) In General.--An oil or gas lease issued pursuant to
this title shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed
or sold from the lease, as determined by the Secretary under
the regulations applicable to other Federal oil and gas
leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the
reclamation of lands within the Coastal Plain and any other
Federal lands that are adversely affected in connection with
exploration, development, production, or transportation
activities conducted under the lease and within the Coastal
Plain by the lessee or by any of the subcontractors or agents
of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, and the environment as
required pursuant to section 2203(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for
Alaska Natives and Alaska Native Corporations from throughout
the State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this title and the regulations issued under this title.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this title and in recognizing
the Government's proprietary interest in labor stability and
in the ability of construction labor and management to meet
the particular needs and conditions of projects to be
developed under the leases issued pursuant to this title and
the special concerns of the parties to such leases, shall
require that the lessee and its agents and contractors
negotiate to obtain a project labor agreement for the
employment of laborers and mechanics on production,
maintenance, and construction under the lease.

SEC. 2207. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

(a) No Significant Adverse Effect Standard to Govern
Authorized Coastal Plain Activities.--The Secretary shall,
consistent with the requirements of section 2203, administer
the provisions of this title through regulations, lease
terms, conditions, restrictions, prohibitions, stipulations,
and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their
habitat, and the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration,
development, and production on all new exploration,
development, and production operations; and
(3) ensure that the maximum amount of surface acreage
covered by production and support facilities, including
airstrips and any areas covered by gravel berms or piers for
support of pipelines, does not exceed 2,000 acres on the
Coastal Plain.
(b) Site-Specific Assessment and Mitigation.--The Secretary
shall also require, with respect to any proposed drilling and
related activities, that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, their habitat, and the
environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations to Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before
implementing the leasing program authorized by this title,
the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations,
and other measures designed to ensure that the activities
undertaken on the Coastal Plain under this title are
conducted in a manner consistent with the purposes and
environmental requirements of this title.
(d) Compliance With Federal and State Environmental Laws
and Other Requirements.--The proposed regulations, lease
terms, conditions, restrictions, prohibitions, and
stipulations for the leasing program under this title shall
require compliance with all applicable provisions of Federal
and State environmental law and shall also require the
following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1
through 29 at pages 167 through 169 of the ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported, if necessary, by
ice roads, winter trails with adequate snow cover, ice pads,
ice airstrips, and air transport methods, except that such
exploration activities may occur at other times, if the
Secretary finds that such exploration will have no
significant adverse effect on the fish and wildlife, their
habitat, and the environment of the Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible, adverse
effects upon the passage of migratory species such as
caribou; and
(B) minimize adverse effects upon the flow of surface water
by requiring the use of culverts, bridges, and other
structural devices.
(5) Prohibitions on general public access and use on all
pipeline access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and
gas development and production facilities, structures, and
equipment upon completion of oil and gas production
operations, except that the Secretary may exempt from the
requirements of this paragraph those facilities, structures,
or equipment that the Secretary determines would assist in
the management of the Arctic National Wildlife Refuge and
that are donated to the United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or reduction of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.

[[Page H2317]]

(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating
regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations under this section, the
Secretary shall consider the following:
(1) The stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set
forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact
Statement.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal
Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC-ASRC private lands that are set forth in Appendix 2
of the August 9, 1983, agreement between Arctic Slope
Regional Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production,
and transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities and
activities.
(B) Encouraging consolidation of common facilities and
activities.
(C) Locating or confining facilities and activities to
areas that will minimize impact on fish and wildlife, their
habitat, and the environment.
(D) Utilizing existing facilities wherever practicable.
(E) Enhancing compatibility between wildlife values and
development activities.
(g) Access to Public Lands.--The Secretary shall--
(1) manage public lands in the Coastal Plain subject to
subsections (a) and (b) of section 811 of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable
access to public lands in the Coastal Plain for traditional
uses.

SEC. 2208. EXPEDITED JUDICIAL REVIEW.

(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this title or any
action of the Secretary under this title shall be filed in
any appropriate district court of the United States--
(A) except as provided in subparagraph (B), within the 90-
day period beginning on the date of the action being
challenged; or
(B) in the case of a complaint based solely on grounds
arising after such period, within 90 days after the
complainant knew or reasonably should have known of the
grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of an
action of the Secretary under this title may be filed only in
the United States Court of Appeals for the District of
Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with the terms
of this title and shall be based upon the administrative
record of that decision. The Secretary's identification of a
preferred course of action to enable leasing to proceed and
the Secretary's analysis of environmental effects under this
title shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary
with respect to which review could have been obtained under
this section shall not be subject to judicial review in any
civil or criminal proceeding for enforcement.

SEC. 2209. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

(a) In General.--Notwithstanding any other provision of
law, of the amount of adjusted bonus, rental, and royalty
revenues from oil and gas leasing and operations authorized
under this title--
(1) 50 percent shall be paid to the State of Alaska; and
(2) except as provided in section 2212(d) the balance shall
be deposited into the Treasury as miscellaneous receipts.
(b) Payments to Alaska.--Payments to the State of Alaska
under this section shall be made semiannually.
(c) Use of Bonus Payments for Low-Income Home Energy
Assistance.--Amounts that are received by the United States
as bonuses for leases under this title and deposited into the
Treasury under subsection (a)(2) may be appropriated to the
Secretary of the Health and Human Services, in addition to
amounts otherwise available, to provide assistance under the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621
et seq.).

SEC. 2210. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

(a) Exemption.--Title XI of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3161 et seq.) shall not
apply to the issuance by the Secretary under section 28 of
the Mineral Leasing Act (30 U.S.C. 185) of rights-of-way and
easements across the Coastal Plain for the transportation of
oil and gas.
(b) Terms and Conditions.--The Secretary shall include in
any right-of-way or easement referred to in subsection (a)
such terms and conditions as may be necessary to ensure that
transportation of oil and gas does not result in a
significant adverse effect on the fish and wildlife,
subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be
sited or designed so as to avoid unnecessary duplication of
roads and pipelines.
(c) Regulations.--The Secretary shall include in
regulations under section 2203(g) provisions granting rights-
of-way and easements described in subsection (a) of this
section.

SEC. 2211. CONVEYANCE.

In order to maximize Federal revenues by removing clouds on
title to lands and clarifying land ownership patterns within
the Coastal Plain, the Secretary, notwithstanding the
provisions of section 1302(h)(2) of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall
convey--
(1) to the Kaktovik Inupiat Corporation the surface estate
of the lands described in paragraph 1 of Public Land Order
6959, to the extent necessary to fulfill the Corporation's
entitlement under section 12 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1611) in accordance with the terms
and conditions of the Agreement between the Department of the
Interior, the United States Fish and Wildlife Service, the
Bureau of Land Management, and the Kaktovik Inupiat
Corporation effective January 22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining
subsurface estate to which it is entitled pursuant to the
August 9, 1983, agreement between the Arctic Slope Regional
Corporation and the United States of America.

SEC. 2212. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE
ASSISTANCE.

(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available
from the Coastal Plain Local Government Impact Aid Assistance
Fund established by subsection (d) to provide timely
financial assistance to entities that are eligible under
paragraph (2) and that are directly impacted by the
exploration for or production of oil and gas on the Coastal
Plain under this title.
(2) Eligible entities.--The North Slope Borough, Kaktovik,
and other boroughs, municipal subdivisions, villages, and any
other community organized under Alaska State law shall be
eligible for financial assistance under this section.
(b) Use of Assistance.--Financial assistance under this
section may be used only for--
(1) planning for mitigation of the potential effects of oil
and gas exploration and development on environmental, social,
cultural, recreational and subsistence values;
(2) implementing mitigation plans and maintaining
mitigation projects;
(3) developing, carrying out, and maintaining projects and
programs that provide new or expanded public facilities and
services to address needs and problems associated with such
effects, including firefighting, police, water, waste
treatment, medivac, and medical services; and
(4) establishment of a coordination office, by the North
Slope Borough, in the City of Kaktovik, which shall--
(A) coordinate with and advise developers on local
conditions, impact, and history of the areas utilized for
development; and
(B) provide to the Committee on Resources of the Senate and
the Committee on Energy and Resources of the Senate an annual
report on the status of coordination between developers and
the communities affected by development.
(c) Application.--
(1) In general.--Any community that is eligible for
assistance under this section may submit an application for
such assistance to the Secretary, in such form and under such
procedures as the Secretary may prescribe by regulation.
(2) North slope borough communities.--A community located
in the North Slope Borough may apply for assistance under
this section either directly to the Secretary or through the
North Slope Borough.
(3) Application assistance.--The Secretary shall work
closely with and assist the North Slope Borough and other
communities eligible for assistance under this section in
developing and submitting applications for assistance under
this section.
(d) Establishment of Fund.--
(1) In general.--There is established in the Treasury the
Coastal Plain Local Government Impact Aid Assistance Fund.
(2) Use.--Amounts in the fund may be used only for
providing financial assistance under this section.
(3) Deposits.--Subject to paragraph (4), there shall be
deposited into the fund amounts received by the United States
as revenues derived from rents, bonuses, and

[[Page H2318]]

royalties under on leases and lease sales authorized under
this title.
(4) Limitation on deposits.--The total amount in the fund
may not exceed $11,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the fund in interest bearing
government securities.
(e) Authorization of Appropriations.--To provide financial
assistance under this section there is authorized to be
appropriated to the Secretary from the Coastal Plain Local
Government Impact Aid Assistance Fund $5,000,000 for each
fiscal year.

TITLE XXIII--SET AMERICA FREE (SAFE)

SEC. 2301. SHORT TITLE.

This title may be cited as the ``Set America Free Act of
2005'' or the ``SAFE Act''.

SEC. 2302. FINDINGS.

Congress finds the following:
(1) The three contiguous North American countries of
Canada, Mexico, and the United States share many economic,
environmental, and security interests, including being among
each others' largest trading partners, similar interests in
clean air and clean water, concern about infiltration of
terrorists from nations that host terrorist organizations,
and interdependent economic systems.
(2) North American energy self-sufficiency is consistent
with the shared interests of the three contiguous North
American countries and should be achieved through methods
that recognize and respect the sovereignty of each of the
three contiguous North American countries.
(3) The Energy Information Administration (EIA), in its
April 2004 International Energy Outlook, projects that world
energy consumption will increase by 54 percent from 2001 to
2025 and that world oil consumption will rise from 77 million
barrels per day (Mmbbl/d) in 2001 to 121 Mmbbl/d in 2025.
(4) In the same report, EIA projects that, without a change
in governmental policy, the United States oil consumption
will rise by 44.4 percent from 19.6 Mmbbl/d (7.15 billion
barrels per year (Bbbl/y)) in 2001 to 28.3 Mmbbl/d (10.33
Bbbl/y) in 2025, and that the oil consumption of the three
contiguous North American countries of Canada, Mexico, and
the United States (in this title referred to as the ``three
contiguous North American countries'') will rise by 47.2
percent from 23.5 Mmbbl/d (8.58 Bbbl/y) in 2001 (30.5 percent
of world consumption) to 34.6 Mmbbl/d (12.6 Bbbl/y) in 2025
(28.6 percent of world consumption).
(5) EIA projects that, without a change in governmental
policy, oil production in the three contiguous North American
countries will rise by 18.8 percent from 15.4 Mmbbl/d (5.6
Bbbl/y) in 2001 (19.4 percent of world production) to 18.3
Mmbbl/d (6.7 Bbbl/y) in 2025 (14.5 percent of world
production).
(6) EIA projects that, without a change in governmental
policy, the three contiguous North American countries contain
492.7 Bbbls of oil resources (16.8 percent of total world oil
resources) (not including unconventional oil resources such
as United States oil shale or the overwhelming majority of
Canadian oil sands) at the base case oil price, which
represents sufficient oil to fully supply the needs of the
three contiguous North American countries for 57.4 years
based on 2001 oil consumption and 39.1 years based on
projected 2025 oil consumption, resulting in an average of
approximately 48 years of full supply.
(7) In the same report, EIA projects that, without a change
in governmental policy, the United States natural gas
consumption will rise by 38.9 percent from 22.6 trillion
cubic feet per year (Tcf/y) in 2001 to 31.4 Tcf/y in 2025,
and that the natural gas consumption of the three contiguous
North American countries will rise by 48.0 percent from 26.9
Tcf/y in 2001 (29.3 percent of world consumption) to 39.8
Tcf/y in 2025 (26.3 percent of world consumption).
(8) EIA projects that, without a change in governmental
policy, natural gas production in the three contiguous North
American countries will rise by 21.7 percent from 27.6 Tcf/y
in 2001 (30.3 percent of world production) to 33.6 Tcf/y in
2025 (22.3 percent of world production), not including
Alaskan gas through the natural gas pipeline, gas from gas
hydrates, nor expanded coal gasification. The United States
Geological Survey estimates that natural gas hydrate
resources in-place total 169,000 Tcf in Alaska and its
surrounding waters, and approximately 150,000 Tcf off the
lower-48 Atlantic, Pacific, and Gulf of Mexico coastlines.
(9) The terrorist attacks in the United States on September
11, 2001, and the subsequent expansion of terrorist
organizations in regions outside of North America in areas
that are major suppliers of oil, and potential suppliers of
liquified natural gas, to the United States have
significantly increased the national security and homeland
security risks to the United States of relying upon oil and
natural gas supply sources located outside of the three
contiguous North American countries. The United States
imports 60 percent of our oil supplies-the highest in
history. After Canada and Mexico, the largest oil suppliers
to the United States are Saudi Arabia, Venezuela, Nigeria,
Iraq, and Algeria all of which suffer from significant
instability.
(10) According to published scientific, technical, and
economic reports, the three contiguous North American
countries have the resource base and technical ability to
increase production of oil by at least 15 Mmbbl/d by 2025 and
20 Mmbbl/d by 2030 even before increases in coal
liquifaction, biofuels, gas-to-liquids, and other methods of
creating liquid substitutes for crude oil and crude oil
products.
(11) This increase in North American oil production would
be derived from a variety of resources including, among
others--
(A) the United States oil shale resource base (2 trillion
barrels of oil in place out of 2.6 trillion in the world)
believed to be capable of eventually producing 10 Mmbbl/d for
more than 100 years;
(B) the Canadian Alberta oil sands resource base (1.7
trillion barrels of oil in place), also believed to be
capable of eventually producing 10 Mmbbl/d for more than 100
years;
(C) the United States heavy oil resource base (80 billion
barrels of oil in place);
(D) the remaining 400 billion barrels of conventional oil
in place in the United States of which 60 billion barrels are
potentially producible with advanced CO2 enhanced oil
recovery technology;
(E) the United States oil sands resource base of 54 billion
barrels of oil in place;
(F) the Arctic National Wildlife Refuge Coastal Plain area
(ANWR) with a mean technically recoverable resource of more
than 10 billion barrels of oil;
(G) the National Petroleum Reserve-Alaska (NPR-A) with a
mean technically recoverable resource of 9.3 billion barrels
of oil;
(H) the 12-18 billion barrels of oil likely to be
producible in the Canadian Atlantic offshore;
(I) the extensive resources of the Canadian Arctic onshore
and offshore;
(J) the extensive resources in the Alaskan Arctic offshore
and the outer Continental Shelf offshore the lower-48 United
States;
(K) other extensive oil resources in Canada and the United
States; and
(L) the extensive oil resources of Mexico.
(12) In addition to being the ``Saudi Arabia'' of oil shale
with at least 75 percent of the world's oil shale resource
base, the United States is also the ``Saudi Arabia'' of coal.
The EIA estimates that total economically recoverable
reserves of coal around the world are 1,083 billion short
tons-enough to last approximately 210 years at current
consumption levels. EIA estimates that the economically
recoverable coal reserves of the United States, at 25 percent
of total world reserves, are the largest in the world. Total
United States coal resources are vastly larger than the 270
billion short tons of economically recoverable reserves, and
with new technology much more could economically be made
available to supply our energy needs. World consumption of
coal in 2001 was 5.26 billion short tons and is projected to
grow to 7.57 billion short tons in 2025. 70 percent of the
increased world consumption is projected to be attributable
to China and India. United States consumption of coal in 2001
was 1.06 billion short tons and is projected to grow to 1.57
billion short tons in 2025.
(13) Growth in world oil consumption has been outstripping
growth in world production of conventional oil resources for
several primary reasons, including that conventional oil
production in most oil producing countries has peaked and is
now declining, and developing nations such as China and India
are greatly accelerating their consumption of crude oil.
(14) The recent increases in world oil prices are caused by
the faster growth in demand over supply and this trend is
likely to continue because the remaining conventional oil is
more difficult and expensive to find and produce, and
frequently not reasonably available.
(15) The National Intelligence Council, an advisor to the
Central Intelligence Agency, found in its report, ``Mapping
the Global Future,'' NIC 2004-13, December 2004, that
``Continued limited access of the international oil companies
to major fields could restrain this investment necessary for
supply to meet demand, however, and many of the areas--the
Caspian Sea, Venezuela, West Africa, and South China Sea--
that are being counted on to provide increased output involve
substantial political or economic risk. Traditional suppliers
in the Middle East are also increasingly unstable. Thus
sharper demand-driven competition for resources, perhaps
accompanied by a major disruption of oil supplies, is among
the key uncertainties. China and India, which lack adequate
domestic energy resources, will have to ensure continued
access to outside suppliers; thus, the need for energy will
be a major factor in shaping their foreign and defense
policies, including expanding naval power''.
(16) Because the price of crude oil is set on a world
market basis, the excess of world demand over supply will
continue to drive up oil prices to levels potentially several
times those of today unless all nations capable of producing
significant quantities of incremental oil respond by ensuring
such production is developed and available for consumption on
an expedited basis.
(17) The eventual, long-term solution is to drastically
reduce the world's reliance on oil as the primary fuel for
transportation (40 percent of the United States consumption
of oil is to power light motor vehicles).
(18) North America, while maximizing the production of oil,
must use the next 40 years as a transition period to a more
sustainable energy model.
(19) The United States also has large renewable energy
resource potential including wind, geothermal, solar,
biomass, ocean

[[Page H2319]]

thermal, waves and currents, and hydroelectric. The EIA's
July 2004 report, ``Renewable Energy Trends 2003'', found
that renewable energy provided 6 percent of the Nation's
energy supply in 2003. The largest renewable energy source
was biomass with 47 percent of the renewables total energy
output, followed closely by hydroelectric with 45 percent,
then geothermal with 5 percent, wind with 2 percent, and
solar with 1 percent. Technology is rapidly advancing,
positioning renewable energy to provide an increasing share
of our energy supply in the residential, commercial,
industrial, transportation, and electric power sectors. The
United States public lands and waters comprise 2.25 billion
acres, large portions of which may be available to rapidly
expand this clean and renewable alternative to fossil energy
resources. These lands should be reviewed for their potential
contribution to our Nation's domestic energy security.
(20) The United States has the strongest environmental
safeguards in the world, and our standards, science, and
technology have proven that the United States can produce
energy in an environmentally benign manner, particularly when
compared with the lesser environmental standards in most
foreign oil producing countries.
(21) The 1999 Clinton Administration report,
``Environmental Benefits of Advanced Oil and Gas Exploration
and Production Technology,'' highlights the technological
achievements of the United States oil and gas industry. The
report noted, ``public awareness of the significant and
impressive environmental benefits from new exploration and
production (E&P) technology advances remains limited . . ..
We believe it is important to tell this remarkable story of
environmental progress in E&P technology. Greater awareness
of the industry's achievements in environmental protection
will provide the context for effective policy, and for
informed decision making by both the private and public
sectors.''.
(22) Many Americans believe the myth that spills from oil
and natural gas exploration and production are the leading
cause of oil pollution in the oceans and the Nation's rivers
and streams. The reality is that, to the contrary, in 2002
the National Academy of Sciences found that offshore oil and
natural gas exploration and production account for a total of
only 2 percent of the oil in the North American marine
environment; natural sources such as oil seeps account for 63
percent of such oil; industrial and municipal discharges,
including urban runoff, account for 22 percent of such oil;
atmospheric pollution accounts for 8 percent of such oil;
marine transportation accounts for 3 percent of such oil; and
recreational vessels account for 2 percent of such oil.
(23) Various national security organizations and experts
have warned the United States of the escalating risks to our
national security of relying on transoceanic oil imports from
unstable regions of the world for a significant part of our
oil supplies, and they have urged the Nation to reduce its
dependence on oil.
(24) Polls consistently have found that a majority of
individuals in the United States strongly support reducing
our reliance on foreign energy sources.
(25) A recent report on ``Energy and National Security''
issued by Sandia National Laboratories, SAND2003-3287,
September 2003, found that our national security is
threatened by our continued reliance on vast quantities of
oil from unstable foreign sources. The report found that
supply disruptions, caused by terrorists or otherwise, could
immediately remove many millions of barrels of oil per day
from the world supply, and noted that the EIA has estimated
that for every one million bbl/d of oil supply disrupted,
world oil prices might increase $3-$5 per barrel. Sandia
found six solution options, including--
(A) maintenance of strategic reserves;
(B) support of foreign government regimes likely to
maintain production;
(C) military deterrence, protection, or intervention to
secure production sources and facilities;
(D) diversification of production sources;
(E) reduction of oil intensity through conservation or
through more efficient energy use; and
(F) development and deployment of alternatives to oil (or
gas).
Sandia noted ``that none of these measures seems likely to
emerge from business-as-usual market processes. Thus
implementation of these measures will usually require public
policy decisions. In the case of the first three, they would
be foreign and military policy decisions; in the case of the
latter three, they would be legal, regulatory, or
governmental subsidy decisions.'' Sandia mentioned oil shale
and tar sands as potential diversified sources of oil
supplies, and hydrogen, coal, renewables, nuclear fission,
and methane hydrates as alternatives to oil.
(26) President Clinton concluded, on February 16, 1995,
under section 232 of the Trade Expansion Act of 1962, that
``. . . the nation's growing reliance on imports of crude oil
and refined petroleum products threaten the nation's security
because they increase U.S. vulnerability to oil supply
interruptions.''. In 1994 crude oil imports were 7.051
million barrels per day. On March 24, 2000, President
Clinton, upon further review under section 232, found, ``I
have reviewed and approved the findings of your investigative
report . . . that imports of crude oil threaten to impair the
national security.''. Between the two statements by President
Clinton, United States crude oil imports increased 21.6
percent to 8.581 million barrels per day in 1999.
(27) Economists have found that while OPEC is an important
source of oil price increases, the United States government
is also partly to blame because overly burdensome government
regulations on domestic energy exploration, production, and
sales have supported OPEC's monopoly power and restricted
competition from American energy companies, in addition to
making expansive highly prospective areas off-limits to
leasing and production.
(28) In addition to jeopardizing our national and energy
security, importing the majority of our oil also injures our
economic security. The United States imported approximately
4.7 billion barrels of oil in 2004, of which 1.4 billion
barrels were from Canada and Mexico. Imported energy creates
very few jobs in the United States and makes only a very
minor contribution to our Gross Domestic Product (GDP). If we
substitute North American production for the remaining 3.3
billion barrels of imports per year, at $40 per barrel the
new production would sell for $132 billion. A widely used
commercial economics model projects that GDP would increase
by $336 billion, creating 1,667,160 jobs, each with an
average total annual compensation of $50,356. Further, such
activity is projected to generate approximately $22 billion
in indirect business taxes, including sales, excise, and
severance taxes. At a one-eighth royalty, total royalty
payments to mineral rights owners would approximate $16.5
billion per year. Further, our imported energy represents
more than 25 percent of our international trade deficit.
American production could eliminate two-thirds of the 25
percent, strengthening our economy.

SEC. 2303. PURPOSE.

The purpose of this title is to establish a United States
commission to make recommendations for a coordinated and
comprehensive North American energy policy that will achieve
energy self-sufficiency by 2025 within the three contiguous
North American nation area of Canada, Mexico, and the United
States.

SEC. 2304. UNITED STATES COMMISSION ON NORTH AMERICAN ENERGY
FREEDOM.

(a) Establishment.--There is hereby established the United
States Commission on North American Energy Freedom (in this
title referred to as the ``Commission''). The Federal
Advisory Committee Act (5 U.S.C. App.), except sections 3, 7,
and 12, does not apply to the Commission.
(b) Membership.--
(1) Appointment.--The Commission shall be composed of 16
members appointed by the President from among individuals
described in paragraph (2) who are knowledgeable on energy
issues, including oil and gas exploration and production,
crude oil refining, oil and gas pipelines, electricity
production and transmission, coal, unconventional hydrocarbon
resources, fuel cells, motor vehicle power systems, nuclear
energy, renewable energy, biofuels, energy efficiency, and
energy conservation. The membership of the Commission shall
be balanced by area of expertise to the extent consistent
with maintaining the highest level of expertise on the
Commission. Members of the Commission may be citizens of
Canada, Mexico, or the United States, and the President shall
ensure that citizens of all three nations are appointed to
the Commission.
(2) Nominations.--The President shall appoint the members
of the Commission within 60 days after the effective date of
this Act, including individuals nominated as follows:
(A) 4 members shall be appointed from amongst individuals
independently determined by the President to be qualified for
appointment.
(B) 4 members shall be appointed from a list of 8
individuals who shall be nominated by the majority leader of
the Senate in consultation with the chairman of the Committee
on Energy and Natural Resources of the Senate.
(C) 4 members shall be appointed from a list of 8
individuals who shall be nominated by the Speaker of the
House of Representatives in consultation with the chairmen of
the Committees on Energy and Commerce and Resources of the
House of Representatives.
(D) 2 members shall be appointed from a list of 4
individuals who shall be nominated by the minority leader of
the Senate in consultation with the ranking Member of the
Committee on Energy and Natural Resources of the Senate.
(E) 2 members shall be appointed from a list of 4
individuals who shall be nominated by the minority leader of
the House in consultation with the ranking Members of the
Committees on Energy and Commerce and Resources of the House
of Representatives.
(3) Chairman.--The chairman of the Commission shall be
selected by the President. The chairman of the Commission
shall be responsible for--
(A) the assignment of duties and responsibilities among
staff personnel and their continuing supervision; and
(B) the use and expenditure of funds available to the
Commission.
(4) Vacancies.--Any vacancy on the Commission shall be
filled in the same manner as the original incumbent was
appointed.
(c) Resources.--In carrying out its functions under this
section, the Commission--
(1) is authorized to secure directly from any Federal
agency or department any information it deems necessary to
carry out its functions under this Act, and each such

[[Page H2320]]

agency or department is authorized to cooperate with the
Commission and, to the extent permitted by law, to furnish
such information (other than information described in section
552(b)(1)(A) of title 5, United States Code) to the
Commission, upon the request of the Commission;
(2) may enter into contracts, subject to the availability
of appropriations for contracting, and employ such staff
experts and consultants as may be necessary to carry out the
duties of the Commission, as provided by section 3109 of
title 5, United States Code; and
(3) shall establish a multidisciplinary science and
technical advisory panel of experts in the field of energy to
assist the Commission in preparing its report, including
ensuring that the scientific and technical information
considered by the Commission is based on the best scientific
and technical information available.
(d) Staffing.--The chairman of the Commission may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary for the Commission to perform
its duties. The executive director shall be compensated at a
rate not to exceed the rate payable for Level IV of the
Executive Schedule under chapter 5136 of title 5, United
States Code. The chairman shall select staff from among
qualified citizens of Canada, Mexico, and the United States
of America.
(e) Meetings.--
(1) Administration.--All meetings of the Commission shall
be open to the public, except that a meeting or any portion
of it may be closed to the public if it concerns matters or
information described in section 552b(c) of title 5, United
States Code. Interested persons shall be permitted to appear
at open meetings and present oral or written statements on
the subject matter of the meeting. The Commission may
administer oaths or affirmations to any person appearing
before it.
(2) Notice; minutes; public availability of documents.--
(A) Notice.--All open meetings of the Commission shall be
preceded by timely public notice in the Federal Register of
the time, place, and subject of the meeting.
(B) Minutes.--Minutes of each meeting shall be kept and
shall contain a record of the people present, a description
of the discussion that occurred, and copies of all statements
filed. Subject to section 552 of title 5, United States Code,
the minutes and records of all meetings and other documents
that were made available to or prepared for the Commission
shall be available for public inspection and copying at a
single location in the offices of the Commission.
(3) Initial meeting.--The Commission shall hold its first
meeting within 30 days after all 16 members have been
appointed.
(f) Report.--Within 12 months after the effective date of
this Act, the Commission shall submit to Congress and the
President a final report of its findings and recommendations
regarding North American energy freedom.
(g) Administrative Procedure for Report and Review.--
Chapter 5 and chapter 7 of title 5, United States Code, do
not apply to the preparation, review, or submission of the
report required by subsection (f).
(h) Termination.--The Commission shall cease to exist 90
days after the date on which it submits its final report.
(i) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this chapter a total of
$10,000,000 for the 2 fiscal-year period beginning with
fiscal year 2005, such sums to remain available until
expended.

SEC. 2305. NORTH AMERICAN ENERGY FREEDOM POLICY.

Within 90 days after receiving and considering the report
and recommendations of the Commission under section 2304, the
President shall submit to Congress a statement of proposals
to implement or respond to the Commission's recommendations
for a coordinated, comprehensive, and long-range national
policy to achieve North American energy freedom by 2025.

TITLE XXV--GRAND CANYON HYDROGEN-POWERED TRANSPORTATION DEMONSTRATION

SEC. 2501. SHORT TITLE.

This title may be cited as the ``Grand Canyon Hydrogen-
Powered Transportation Demonstration Act of 2005''.

SEC. 2502. DEFINITIONS.

For purposes of this title, the term--
(1) ``Departments'' means the Department of Energy jointly
with the Department of the Interior; and
(2) ``Secretaries'' means the Secretary of Energy jointly
with the Secretary of the Interior.

SEC. 2503. FINDINGS.

The Congress finds that--
(1) there is a need for a research and development program
to support and foster the development, demonstration, and
deployment of emerging hydrogen-based transportation
technologies suitable for use in sensitive resource areas;
(2) partnerships between the Department of Energy, the
Department of the Interior, Native American Tribes, and
United States industry to develop hydrogen-based energy
technologies can provide significant benefits to our Nation,
including enhancing our environmental stewardship, reducing
our dependence on foreign oil, increasing our energy
security, as well as creating jobs for United States workers
and improving the competitive position of the United States
in the global economy; and
(3) when technologically and economically feasible, the
implementation of clean, silent or nearly silent, hydrogen-
based transportation technologies would further resource
stewardship and experiential goals in sensitive resource
areas including units of the National Park System, such as
Grand Canyon National Park.

SEC. 2504. RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.

(a) In General.--The Secretaries shall jointly establish
and carry out a research and development program, in
partnership with the private sector, relating to hydrogen-
based transportation technologies suitable for operations in
sensitive resource areas such as national parks. The
Secretaries, in partnership with the private sector, shall
conduct a demonstration of hydrogen-based public
transportation technology at Grand Canyon National Park
within three years after the date of enactment of this Act.
At his discretion, the Secretary of Energy may choose to
extend existing Department of Energy hydrogen-related vehicle
research and development programs in order to meet the
objectives and requirements of this title. The Secretaries
shall provide preference to tribal entities in the
establishment of the research and development program.
(b) Objective.--The objective of the program shall be to
research, develop, and demonstrate, in cooperation with
affected and related industries, a hydrogen-based alternative
public transportation system suitable for operations within
Grand Canyon National Park, that meets the following
standards:
(1) Silent or near-silent operation.
(2) Low, ultra low, or zero emission of pollutants.
(3) Reliability.
(4) Safe conveyance of passengers and operator.
(c) Partnership.--In order to accomplish the objective set
forth in subsection (b), the Secretaries shall establish a
partnership among the Departments, manufacturers, other
affected or related industries, Native American Tribes, and
the National Park Service shuttle operators and tour
operators authorized to provide services in Grand Canyon
National Park.

SEC. 2505. REPORTS TO CONGRESS.

One year after the date of enactment of this Act, and
annually thereafter for the duration of the program, the
Secretaries shall submit a report to the Committees on
Appropriations, Resources, and Energy and Commerce of the
House of Representatives and the Committees on Appropriations
and Energy and Natural Resources of the Senate describing the
ongoing activities of the Secretaries and the Departments
relating to the program authorized under this title and, to
the extent practicable, the activities planned for the coming
fiscal year.

SEC. 2506. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretaries
to carry out this title, in addition to any amounts made
available for these or related purposes under other Acts,
$400,000 per year for three consecutive fiscal years
beginning with the full fiscal year following the date of
enactment of this Act.

TITLE XXVI--ADDITIONAL PROVISIONS

SEC. 2601. LIMITATION ON REQUIRED REVIEW UNDER NEPA.

(a) Limitation on Review.--Action by the Secretary of the
Interior in managing the public lands with respect to any of
the activities described in subsection (b) shall not be
subject to review under section 102(2)(C) the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), if
the activity is conducted for the purpose of exploration or
development of a domestic Federal energy source.
(b) Activities Described.--The activities referred to in
subsection (a) are the following:
(1) Geophysical exploration that does not require road
building.
(2) Individual surface disturbances of less than 5 acres.
(3) Drilling an oil or gas well at a location or well pad
site at which drilling has occurred previously.
(4) Drilling an oil or gas well within a developed field
for which an approved land use plan or any environmental
document prepared pursuant to the National Environmental
Policy Act of 1969 analyzed such drilling as a reasonably
foreseeable activity.
(5) Disposal of water produced from an oil or gas well, if
the disposal is in compliance with a permit issued under the
Federal Water Pollution Control Act.
(6) Placement of a pipeline in an approved right-of-way
corridor.
(7) Maintenance of a minor activity, other than any
construction or major renovation of a building or facility.

SEC. 2602. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF
FEDERAL LANDS.

(a) Sense of the Congress.--It is the sense of the Congress
that Federal agencies should enhance the use of energy
efficient technologies in the management of natural
resources.
(b) Energy Efficient Buildings.--To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and
the Secretary of Agriculture shall seek to incorporate energy
efficient technologies in public and administrative buildings
associated

[[Page H2321]]

with management of the National Park System, National
Wildlife Refuge System, National Forest System, National
Marine Sanctuaries System, and other public lands and
resources managed by the Secretaries.
(c) Energy Efficient Vehicles.--To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and
the Secretary of Agriculture shall seek to use energy
efficient motor vehicles, including vehicles equipped with
biodiesel or hybrid engine technologies, in the management of
the National Park System, National Wildlife Refuge System,
National Forest System, National Marine Sanctuaries System,
and other public lands and resources managed by the
Secretaries.

The CHAIRMAN. No amendment to the bill shall be in order except those
printed in House Report 109-49.
Each amendment may be offered only in the order printed in the
report, by a Member designated in the report, shall be considered read,
shall be debatable for the time specified in the report, equally
divided and controlled by the proponent and an opponent, shall not be
subject to amendment except as specified in the report, and shall not
be subject to a demand for division of the question.
It is now in order to consider amendment No. 1 printed in House
Report 109-49.

Amendment No. 1 Offered by Mr. Hall

Mr. HALL. Madam Chairman, I rise as the designee of the chairman and
I offer amendment No. 1.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 1 Offered by Mr. Hall:
In the item in the table of contents relating to section
142, strike ``cdbg'' and insert ``CDBG''.
In section 105(a)(1), strike ``Section 801(a)'' and insert
``Section 801(a)(2)''.
In section 105(a)(1), strike ``(42 U.S.C. 8287(a))'' and
insert ``(42 U.S.C. 8287(a)(2))''.
In section 105(a)(1), in the proposed subparagraph (E),
insert ``and report to the Office of Management and Budget''
after ``shall meet monthly''.
In section 105(a)(1), in the proposed subparagraph (E),
insert ``No Federal agency shall enter into a contract under
this title unless the Office of Management and Budget has
approved such contract.'' after ``contracts are not
exceeded.''.
In section 105, strike subsections (c), (d), (e), (f), and
(g), and redesignate subsection (h) as subsection (c).
In section 133(b), in the proposed subsection (f), strike
``for suspended ceiling fans,''; and strike the last
sentence.
In section 133(c), in the proposed subsection (v), strike
``Suspended Ceiling Fans, Vending Machines,'' and insert
``Vending Machines'' in the subsection heading.
In section 133(c), in the proposed subsection (v), strike
``suspended ceiling fans, refrigerated bottled or canned
beverage vending machines,'' and insert ``refrigerated
bottled or canned beverage vending machines''.
In section 136, strike ``Section 327'' and insert
``Effective 3 years after the date of enactment of this Act,
section 327''.
In section 136, redesignate the proposed subsection (h) as
subsection (i).
In section 136, in the proposed subsection (i)(1) (as so
redesignated by the preceding amendment), strike ``or
revised'' both places it appears.
In section 148 of the bill, strike subparagraph (B) of
paragraph (1) and insert the following:
(B) in paragraph (2), by inserting ``, and, with respect to
rehabilitation and new construction of public and assisted
housing funded by HOPE VI revitalization grants under section
24 of the United States Housing Act of 1937 (42 U.S.C.
1437v), the 2003 International Energy Conservation Code''
after ``90.1-1989')'';
In section 148 of the bill, strike subparagraph (B) of
paragraph (2) and all that follows through the end of
paragraph (3) and insert the following:
(B) by inserting ``, and, with respect to rehabilitation
and new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'' before the period at
the end; and
(3) in subsection (c)--
(A) in the heading, by inserting ``and the International
Energy Conservation Code'' after ``Model Energy Code''; and
(B) by inserting ``, or, with respect to rehabilitation and
new construction of public and assisted housing funded by
HOPE VI revitalization grants under section 24 of the United
States Housing Act of 1937 (42 U.S.C. 1437v), the 2003
International Energy Conservation Code'' after ``1989''.
In section 205(a), in the proposed section 570(a)(1),
strike ``Secretary'' and insert ``Administrator of General
Services''.
In section 205(a), in the proposed section 570(a)(4),
strike ``Secretary'' and insert ``Administrator''.
In section 205(a), in the proposed section 570(b)(1),
strike ``Secretary'' and insert ``Administrator''.
In section 205(a), in the proposed section 570(b)(2),
strike ``Secretary'' and insert ``Administrator''.
In section 205(a), strike ``Part 4 of title V of the
National Energy Conservation Policy Act (42 U.S.C. 8271 et
seq.)'' and insert ``Subchapter VI of chapter 31 of title 40,
United States Code,''.
In section 205(a), at the beginning of the quoted material,
strike ``sec. 570.'' and insert ``Sec. 3177.''.
Strike section 206 (and amend the table of contents
accordingly).
Strike section 244 (and amend the table of contents
accordingly).
Strike section 245 (and amend the table of contents
accordingly).
In title III, after section 330, insert the following new
section (and amend the table of contents accordingly):

SEC. 332. NATURAL GAS MARKET REFORM.

(a) Clarification of Existing CFTC Authority.--
(1) False reporting.--Section 9(a)(2) of the Commodity
Exchange Act (7 U.S.C. 13(a)(2)) is amended by striking
``false or misleading or knowingly inaccurate reports'' and
inserting ``knowingly false or knowingly misleading or
knowingly inaccurate reports''.
(2) Commission administrative and civil authority.--Section
9 of the Commodity Exchange Act (7 U.S.C. 13) is amended by
redesignating subsection (f) as subsection (e), and adding:
``(f) Commission Administrative and Civil Authority.--The
Commission may bring administrative or civil actions as
provided in this Act against any person for a violation of
any provision of this section including, but not limited to,
false reporting under subsection (a)(2).''.
(3) Effect of amendments.--The amendments made by
paragraphs (1) and (2) restate, without substantive change,
existing burden of proof provisions and existing Commission
civil enforcement authority, respectively. These clarifying
changes do not alter any existing burden of proof or grant
any new statutory authority. The provisions of this section,
as restated herein, continue to apply to any action pending
on or commenced after the date of enactment of this Act for
any act, omission, or violation occurring before, on, or
after, such date of enactment.
(b) Fraud Authority.--Section 4b of the Commodity Exchange
Act (7 U.S.C. 6b) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking subsection (a) and inserting the following:
``(a) It shall be unlawful--
``(1) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery or in interstate commerce, that is made,
or to be made, on or subject to the rules of a designated
contract market, for or on behalf of any other person; or
``(2) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or
transaction subject to section 5a(g) (1) and (2) of this Act,
that is made, or to be made, for or on behalf of, or with,
any other person, other than on or subject to the rules of a
designated contract market--
``(A) to cheat or defraud or attempt to cheat or defraud
such other person;
``(B) willfully to make or cause to be made to such other
person any false report or statement or willfully to enter or
cause to be entered for such other person any false record;
``(C) willfully to deceive or attempt to deceive such other
person by any means whatsoever in regard to any order or
contract or the disposition or execution of any order or
contract, or in regard to any act of agency performed, with
respect to any order or contract for or, in the case of
subsection (a)(2), with such other person; or
``(D)(i) to bucket an order if such order is either
represented by such person as an order to be executed, or
required to be executed, on or subject to the rules of a
designated contract market; or
``(ii) to fill an order by offset against the order or
orders of any other person, or willfully and knowingly and
without the prior consent of such other person to become the
buyer in respect to any selling order of such other person,
or become the seller in respect to any buying order of such
other person, if such order is either represented by such
person as an order to be executed, or required to be
executed, on or subject to the rules of a designated contract
market.
``(b) Subsection (a)(2) shall not obligate any person, in
connection with a transaction in a contract of sale of a
commodity for future delivery, or other agreement, contract
or transaction subject to section 5a(g) (1) and (2) of this
Act, with another person, to disclose to such other person
nonpublic information that may be material to the market
price of such commodity or transaction, except as necessary
to make any statement made to such other person in connection
with such transaction, not misleading in any material
respect.''.
(c) Jurisdiction of the CFTC.--The Natural Gas Act (15
U.S.C. 717 et seq.) is amended by adding at the end:

``SEC. 26. JURISDICTION.

``This Act shall not affect the exclusive jurisdiction of
the Commodity Futures Trading Commission with respect to
accounts,

[[Page H2322]]

agreements, contracts, or transactions in commodities under
the Commodity Exchange Act (7 U.S.C. 1 et seq.). Any request
for information by the Commission to a designated contract
market, registered derivatives transaction execution
facility, board of trade, exchange, or market involving
accounts, agreements, contracts, or transactions in
commodities (including natural gas, electricity, and other
energy commodities) within the exclusive jurisdiction of the
Commodity Futures Trading Commission shall be directed to the
Commodity Futures Trading Commission, which shall cooperate
in responding to any information request by the
Commission.''.
(d) Increased Penalties.--Section 21 of the Natural Gas Act
(15 U.S.C. 717t) is amended--
(1) in subsection (a)--
(A) by striking ``$5,000'' and inserting ``$1,000,000'';
and
(B) by striking ``two years'' and inserting ``5 years'';
and
(2) in subsection (b), by striking ``$500'' and inserting
``$50,000''.
In section 441(a), in the proposed section 3105(b)(1),
insert ``or equal to'' after ``projects less than''.
In section 640, strike ``Section 3110'' and insert
``Section 3110(a)''.
In section 640, in the proposed paragraph (8), strike ``Not
later than'' and insert ``To the extent appropriations are
provided in advance for this purpose or are otherwise
available, not later than''.
In section 663, at the beginning of the quoted material,
strike ``(z)'' and insert ``z.''.
In section 663, in the proposed subsection z.(1), strike
``section 922(o), (v), and (w)'' and insert ``section
922(a)(4) and (o)''.
In section 663, in the proposed subsection z.(2)(A), strike
``, (o), (v), and (w)'' and insert ``and (o)''.
In section 722(b)(1)(B), strike ``, scooters,''.
In title VII, amend section 753 to read as follows:

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.

(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration and the Administrator of the
Environmental Protection Agency shall jointly initiate a
study to identify--
(1) the impact of aircraft emissions on air quality in
nonattainment areas;
(2) ways to promote fuel conservation measures for aviation
to enhance fuel efficiency and reduce emissions; and
(3) opportunities to reduce air traffic inefficiencies that
increase fuel burn and emissions.
(b) Focus.--The study under subsection (a) shall focus on
how air traffic management inefficiencies, such as aircraft
idling at airports, result in unnecessary fuel burn and air
emissions.
(c) Report.--Not later than 1 year after the date of the
initiation of the study under subsection (a), the
Administrator of the Federal Aviation Administration and the
Administrator of the Environmental Protection Agency shall
jointly submit to the Committee on Energy and Commerce and
the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Environment and
Public Works and the Committee on Commerce, Science, and
Transportation of the Senate a report that--
(1) describes the results of the study; and
(2) includes any recommendations on ways in which
unnecessary fuel use and emissions affecting air quality may
be reduced--
(A) without adversely affecting safety and security and
increasing individual aircraft noise; and
(B) while taking into account all aircraft emissions and
the impact of those emissions on the human health.
(d) Risk Assessments.--Any assessment of risk to human
health and the environment prepared by the Administrator of
the Federal Aviation Administration or the Administrator of
the Environmental Protection Agency to support the report in
this section shall be based on sound and objective scientific
practices, shall consider the best available science, and
shall present the weight of the scientific evidence
concerning such risks.
In title VII, amend section 756 to read as follows:

SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Advanced truck stop electrification system.--The term
``advanced truck stop electrification system'' means a
stationary system that delivers heat, air conditioning,
electricity, or communications, and is capable of providing
verifiable and auditable evidence of use of those services,
to a heavy-duty vehicle and any occupants of the heavy-duty
vehicle with or without relying on components mounted onboard
the heavy-duty vehicle for delivery of those services.
(3) Auxiliary power unit.--The term ``auxiliary power
unit'' means an integrated system that--
(A) provides heat, air conditioning, engine warming, or
electricity to components on a heavy-duty vehicle; and
(B) is certified by the Administrator under part 89 of
title 40, Code of Federal Regulations (or any successor
regulation), as meeting applicable emission standards.
(4) Heavy-duty vehicle.--The term ``heavy-duty vehicle''
means a vehicle that--
(A) has a gross vehicle weight rating greater than 8,500
pounds; and
(B) is powered by a diesel engine.
(5) Idle reduction technology.--The term ``idle reduction
technology'' means an advanced truck stop electrification
system, auxiliary power unit, or other device or system of
devices that--
(A) is used to reduce long-duration idling of a heavy-duty
vehicle; and
(B) allows for the main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle to be shut down.
(6) Energy conservation technology.--the term ``energy
conservation technology'' means any device, system of
devices, or equipment that improves the fuel economy of a
heavy-duty vehicle.
(7) Long-duration idling.--
(A) In general.--The term ``long-duration idling'' means
the operation of a main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle, for a period
greater than 15 consecutive minutes, at a time at which the
main drive engine is not engaged in gear.
(B) Exclusions.--The term ``long-duration idling'' does not
include the operation of a main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle during a routine
stoppage associated with traffic movement or congestion.
(b) Idle Reduction Technology Benefits, Programs, and
Studies.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall--
(A)(i) commence a review of the mobile source air emission
models of the Environmental Protection Agency used under the
Clean Air Act (42 U.S.C. 7401 et seq.) to determine whether
the models accurately reflect the emissions resulting from
long-duration idling of heavy-duty vehicles and other
vehicles and engines; and
(ii) update those models as the Administrator determines to
be appropriate; and
(B)(i) commence a review of the emission reductions
achieved by the use of idle reduction technology; and
(ii) complete such revisions of the regulations and
guidance of the Environmental Protection Agency as the
Administrator determines to be appropriate.
(2) Deadline for completion.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall--
(A) complete the reviews under subparagraphs (A)(i) and
(B)(i) of paragraph (1); and
(B) prepare and make publicly available 1 or more reports
on the results of the reviews.
(3) Discretionary inclusions.--The reviews under
subparagraphs (A)(i) and (B)(i) of paragraph (1) and the
reports under paragraph (2)(B) may address the potential fuel
savings resulting from use of idle reduction technology.
(4) Idle reduction and energy conservation deployment
program.--
(A) Establishment.--
(i) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation shall, through the
Environmental Protection Agency's SmartWay Transport
Partnership, establish a program to support deployment of
idle reduction and energy conservation technologies .
(ii) Priority.--The Administrator shall give priority to
the deployment of idle reduction and energy conservation
technologies based on the costs and beneficial effects on air
quality and ability to lessen the emission of criteria air
pollutants.
(B) Funding.--
(i) Authorization of appropriations.--There are authorized
to be appropriated to the Administrator to carry out
subparagraph (A) $19,500,000 for fiscal year 2006,
$30,000,000 for fiscal year 2007, and $45,000,000 for fiscal
year 2008.
(ii) Cost sharing.--Subject to clause (iii), the
Administrator shall require at least 50 percent of the costs
directly and specifically related to any project under this
section to be provided from non-Federal sources.
(iii) Necessary and appropriate reductions.--The
Administrator may reduce the non-Federal requirement under
clause (ii) if the Administrator determines that the
reduction is necessary and appropriate to meet the objectives
of this section.
(5) Idling location study.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation, shall commence a study
to analyze all locations at which heavy-duty vehicles stop
for long-duration idling, including--
(i) truck stops;
(ii) rest areas;
(iii) border crossings;
(iv) ports;
(v) transfer facilities; and
(vi) private terminals.
(B) Deadline for completion.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall--
(i) complete the study under subparagraph (A); and
(ii) prepare and make publicly available 1 or more reports
of the results of the study.
(c) Vehicle Weight Exemption.--Section 127(a) of title 23,
United States Code, is amended--
(1) by designating the first through eleventh sentences as
paragraphs (1) through (11), respectively; and
(2) by adding at the end the following:

[[Page H2323]]

``(12) Heavy duty vehicles.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
order to promote reduction of fuel use and emissions because
of engine idling, the maximum gross vehicle weight limit and
the axle weight limit for any heavy-duty vehicle equipped
with an idle reduction technology shall be increased by a
quantity necessary to compensate for the additional weight of
the idle reduction system.
``(B) Maximum weight increase.--The weight increase under
subparagraph (A) shall be not greater than 400 pounds.
``(C) Proof.--On request by a regulatory agency or law
enforcement agency, the vehicle operator shall provide proof
(through demonstration or certification) that--
``(i) the idle reduction technology is fully functional at
all times; and
``(ii) the 400-pound gross weight increase is not used for
any purpose other than the use of idle reduction technology
described in subparagraph (A).''.
(d) Report.--Not later than 60 days after the date on which
funds are initially awarded under this section, and on an
annual basis thereafter, the Administrator shall submit to
Congress a report containing--
(1) an identification of the grant recipients, a
description of the projects to be funded and the amount of
funding provided; and
(2) an identification of all other applicants that
submitted applications under the program.
In title VIII, after section 810, insert the following and
make the necessary conforming changes in the table of
contents:

SEC. 811. HYDROGEN FUEL CELL BUSES.

The Secretary of Energy, through the advanced vehicle
technologies program, in coordination with the Secretary of
Transportation, shall advance the development of fuel cell
bus technologies by providing funding for 4 demonstration
sites that--
(1) have or will soon have hydrogen infrastructure for fuel
cell bus operation; and
(2) are operated by entities with experience in the
development of fuel cell bus technologies, to enable the
widespread utilization of fuel cell buses.

Such demonstrations shall address the reliability of fuel
cell heavy-duty vehicles, expense, infrastructure,
containment, storage, safety, training, and other issues.
In title IX, subtitle F, chapter 1, add at the end the
following new sections:

SEC. 968A. WESTERN MICHIGAN DEMONSTRATION PROJECT.

The Administrator of the Environmental Protection Agency,
in consultation with the State of Michigan and affected local
officials, shall conduct a demonstration project to address
the effect of transported ozone and ozone precursors in
Southwestern Michigan. The demonstration program shall
address projected nonattainment areas in Southwestern
Michigan that include counties with design values for ozone
of less than .095 based on years 2000 to 2002 or the most
current 3-year period of air quality data. The Administrator
shall assess any difficulties such areas may experience in
meeting the 8 hour national ambient air quality standard for
ozone due to the effect of transported ozone or ozone
precursors into the areas. The Administrator shall work with
State and local officials to determine the extent of ozone
and ozone precursor transport, to assess alternatives to
achieve compliance with the 8 hour standard apart from local
controls, and to determine the timeframe in which such
compliance could take place. The Administrator shall complete
this demonstration project no later than 2 years after the
date of enactment of this section and shall not impose any
requirement or sanction that might otherwise apply during the
pendency of the demonstration project.

SEC. 968B. WESTERN HEMISPHERE ENERGY COOPERATION.

(a) Program.--The Secretary shall carry out a program to
promote cooperation on energy issues with Western Hemisphere
countries.
(b) Activities.--Under the program, the Secretary shall
fund activities to work with Western Hemisphere countries
to--
(1) assist the countries in formulating and adopting
changes in economic policies and other policies to--
(A) increase the production of energy supplies; and
(B) improve energy efficiency; and
(2) assist in the development and transfer of energy supply
and efficiency technologies that would have a beneficial
impact on world energy markets.
(c) University Participation.--To the extent practicable,
the Secretary shall carry out the program under this section
with the participation of universities so as to take
advantage of the acceptance of universities by Western
Hemisphere countries as sources of unbiased technical and
policy expertise when assisting the Secretary in--
(1) evaluating new technologies;
(2) resolving technical issues;
(3) working with those countries in the development of new
policies; and
(4) training policymakers, particularly in the case of
universities that involve the participation of minority
students, such as Hispanic-serving institutions and
Historically Black Colleges and Universities.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $8,000,000 for fiscal year 2006;
(2) $10,000,000 for fiscal year 2007;
(3) $13,000,000 for fiscal year 2008;
(4) $16,000,000 for fiscal year 2009; and
(5) $19,000,000 for fiscal year 2010.

SEC. 968C. ARCTIC ENGINEERING RESEARCH CENTER.

(a) In General.--The Secretary of Energy (referred to in
this section as the ``Secretary'') in consultation with the
Secretary of Transportation and the United States Arctic
Research Commission shall provide annual grants to a
university located adjacent to the Arctic Energy Office of
the Department of Energy, to establish and operate a
university research center to be headquartered in Fairbanks
and to be known as the ``Arctic Engineering Research Center''
(referred to in this section as the ``Center'').
(b) Purpose.--The purpose of the Center shall be to conduct
research on, and develop improved methods of, construction
and use of materials to improve the overall performance of
roads, bridges, residential, commercial, and industrial
structures, and other infrastructure in the Arctic region,
with an emphasis on developing--
(1) new construction techniques for roads, bridges, rail,
and related transportation infrastructure and residential,
commercial, and industrial infrastructure that are capable of
withstanding the Arctic environment and using limited energy
resources as efficiently as possible;
(2) technologies and procedures for increasing road,
bridge, rail, and related transportation infrastructure and
residential, commercial, and industrial infrastructure
safety, reliability, and integrity in the Arctic region;
(3) new materials and improving the performance and energy
efficiency of existing materials for the construction of
roads, bridges, rail, and related transportation
infrastructure and residential, commercial, and industrial
infrastructure in the Arctic region; and
(4) recommendations for new local, regional, and State
permitting and building codes to ensure transportation and
building safety and efficient energy use when constructing,
using, and occupying such infrastructure in the Arctic
region.
(c) Objectives.--The Center shall carry out--
(1) basic and applied research in the subjects described in
subsection (b), the products of which shall be judged by
peers or other experts in the field to advance the body of
knowledge in road, bridge, rail, and infrastructure
engineering in the Arctic region; and
(2) an ongoing program of technology transfer that makes
research results available to potential users in a form that
can be implemented.
(d) Amount of Grant.--For each of fiscal years 2006 through
2011, the Secretary shall provide a grant in the amount of
$3,000,000 to the institution specified in subsection (a) to
carry out this section.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $3,000,000 for
each of fiscal years 2006 through 2011.

SEC. 968D. BARROW GEOPHYSICAL RESEARCH FACILITY.

(a) Establishment.--The Secretary of Commerce, in
consultation with the Secretaries of Energy and the Interior,
the Director of the National Science Foundation, and the
Administrator of the Environmental Protection Agency, shall
establish a joint research facility in Barrow, Alaska, to be
known as the ``Barrow Geophysical Research Facility'', to
support scientific research activities in the Arctic.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretaries of Commerce, Energy,
and the Interior, the Director of the National Science
Foundation, and the Administrator of the Environmental
Protection Agency for the planning, design, construction, and
support of the Barrow Geophysical Research Facility
$61,000,000.
In section 970(d), amend paragraph (3) to read as follows:
(3) Requirement of section 501(c)(3) status.--The Secretary
shall not select a consortium under this section unless such
consortium is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from tax
under such section 501(a) of such Code.
In section 1236, adding a new section 217 to the Federal
Power Act, insert a period before the final closing quotation
marks.
In section 1252(a) and in section 1252(b), strike ``Public
Utilities'' and insert ``Public Utility''.
In section 1254(b)(1), in the amendment to section 112(b)
of the Public Utility Regulatory Policies Act of 1978, strike
``(3)(A)'' and insert ``(5)(A)''.
In section 1254(b)(2), strike ``112(d) f'' and insert
``112(d) of''.
In title XII, in section 1274(a), after ``for'' strike
``section'' and insert ``sections 1269 (relating to effect on
other regulations), 1270 (relating to enforcement), 1271
(relating to savings provisions), and''.
In title XII, amend section 1298 to read as follows:

SEC. 1298. ECONOMIC DISPATCH.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH.

``(a) In General.--The Commission shall convene joint
boards on a regional basis pursuant to section 209 of this
Act to study the issue of security constrained economic
dispatch for the various market regions. The Commission shall
designate the appropriate

[[Page H2324]]

regions to be covered by each such joint board for purposes
of this section.
``(b) Membership.--The Commission shall request each State
to nominate a representative for the appropriate regional
joint board, and shall designate a member of the Commission
to chair and participate as a member of each such board.
``(c) Powers.--The sole authority of each joint board
convened under this section shall be to consider issues
relevant to what constitutes `security constrained economic
dispatch' and how such a mode of operating an electric energy
system affects or enhances the reliability and affordability
of service to customers in the region concerned and to make
recommendations to the Commission regarding such issues.
``(d) Report to the Congress.--Within one year after
enactment of this section, the Commission shall issue a
report and submit such report to the Congress regarding the
recommendations of the joint boards under this section and
the Commission may consolidate the recommendations of more
than one such regional joint board, including any consensus
recommendations for statutory or regulatory reform.''.
In section 1443, in the amendment adding subsection (d) to
section 181 of the Clean Air Act, in paragraph (4), strike
``If, no more than 18 months prior to the date of enactment
of this subsection'' and insert ``If, after April 1, 2003''
and strike ``within 12 months after the date of enactment of
this subsection''.
In title XIV, in section 1446, strike ``as defined under
section 2(a)(1)(A)'' and insert ``identified under section
2(a)(1)(B)'' and strike ``2720(a)(1)(A)'' and insert
``2720(a)(1)(B)''.
In title XV, in section 1505(a), strike ``The review shall
be completed no later than May 31, 2014'' and insert ``The
review shall commence after May 31, 2013, and shall be
completed no later than May 31, 2014''.
In section 1505(b), strike ``No later'' and insert ``After
completion of the review under subsection (a) and no later''.
In section 1510, in subparagraph (G) of subsection (a)(2),
after ``vehicle emission systems,'' insert ``on-road and off-
road diesel rules,'' and after ``imposed by'' insert ``the
Federal Government,''.
In section 1510(b)(1), strike ``2007'' and insert ``2009''.
In title XV, in section 1530, in subsection (a) adding a
new subsection (i) to section 9003 of the Solid Waste
Disposal Act, strike subparagraph (G) of paragraph (1) of
such new subsection (i) and insert a period at the end of
subsection (b).
In title XV, in section 1531, in the amendment adding new
section 9014 to the Solid Waste Disposal Act, in paragraph
(2)(C) strike ``9004(f)'' and insert ``9003(i), 9004(f),''
and in paragraph (2)(D) strike ``9011 and 9012'' and insert
``9010, 9011, 9012, and 9013''.
In section 1541(c)(2), strike ``preserves air quality
standards'' and insert ``addresses air quality
requirements''.
In section 1541(c)(2), strike ``that results'' and insert
``including that which has resulted''.
In section 1541(c), insert the following new paragraph
after paragraph (2) and redesignate the following paragraphs
accordingly:
(3) Conduct of study.--In carrying out their joint duties
under this section, the Administrator and the Secretary shall
use sound science and objective science practices, shall
consider the best available science, shall use data collected
by accepted means and shall consider and include a
description of the weight of the scientific evidence. The
Administrator and the Secretary shall coordinate the study
required by this section with other studies required by the
act and shall endeavor to avoid duplication of effort with
regard to such studies.
In section 1541(c)(4) (as redesignated by the preceding
amendment), strike the sentence beginning with ``The
Administrator shall use sound''.
In the heading of title XVII, insert ``--RESOURCES'' at the
end (and amend the table of contents accordingly).
In the heading of title XIX, insert ``--RESOURCES'' at the
end (and amend the table of contents accordingly).
Strike section 2026 (and amend the table of contents
accordingly).
In the heading of title XXI, insert ``--RESOURCES'' at the
end (and amend the table of contents accordingly).
Redesignate title XXV as title XXIV, and redesignate
sections 2501 through 2506 as sections 2401 through 2406,
respectively (and amend the table of contents accordingly).
Redesignate section 2601 as section 2055, and move it to
the end of subtitle D of title XX.
Redesignate section 2602 as section 112, and move it to the
end of subtitle A of title I.
Strike the remainder of title XXVI.
The CHAIRMAN. Pursuant to House Resolution 219, the gentleman from
Texas (Mr. Hall) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Texas (Mr. Hall).
Mr. HALL. Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I offer a manager's amendment which sets forth
clearly all of the changes we are proposing to make in our
comprehensive energy bill. We have listed all of the changes, rather
than offer a substitute, so all Members know which provisions we are
changing. Our summary clearly explains these changes.
Madam Chairman, this amendment makes some technical changes, adds a
few provisions which were part of the H.R. 6 conference report from
last Congress, and clarifies some of the provisions contained in this
year's bill. None of these provisions should be controversial.
We make technical changes in the ceiling fan efficiency standards. We
clarify references to the firearm laws in the nuclear security
provision, which had referred to a law no longer in existence. We
clarified the tax status of the consortium under the ultradeep program.
And we made clear the PUHCA provisions would not impair FERC's or State
commissions' ability to enforce provisions and that companies still
must comply with existing orders during the period repeal becomes
effective.
We clarify dates in the NAS MTBE study, rulemaking and appropriation
authorization dates for the LUST program, and clarified the bump-up
dates. We allowed our clean air coal projects to be eligible to power
plants of 600 MW or less. We made technical changes to the boutique
fuels studies and our reference to the soybean oil within the Edible
Oil Act. We have also included the on road and off-road diesel rules in
the fuel harmonization study. We also clarified that FERC would have a
role to play with the regional boards we established to set guidelines
for efficient, economic dispatch of electric power.
Madam Chairman, we again try to cap the energy savings performance
contracts at $500 million. We disagree these provisions should score.
Like many, we have voiced our opposition to this score, but we are
concerned about the cost of the bill, so we are trying again to cap its
cost. We also tried to avoid a $64 million score on our employee
benefits amendment we adopted in committee.
Some of our other changes include clarifying that the 3-year time
period in which the Federal Government must establish energy efficiency
standards on certain products be prospective only. Like we did in the
bill of the last Congress, we moved the photovoltaic program from DOE
to GSA.
We added back into the bill some of the provisions contained in our
H.R. 6 conference report of the last Congress. Several were in the
research and development title and include the Western Michigan
Demonstration Project, the Western Hemisphere Energy Cooperation
Project, the Arctic Engineering Research Center, and the Barrow
Geophysical Research Facility.
Madam Chairman, most importantly, we reinserted the natural gas
market reform provision from the last Congress to ensure Enron trading
practices of the past are not repeated. We had to drop this provision
because the parliamentarians thought it could be subject to a point of
order in our committee, so we are putting it back in now.
We have also added the aircraft idling study, the engine idling
program, and the hydrogen fuel bus program. If any Member has any
concerns about these provisions, I look forward to working with you
through conference. We have added some noncontroversial amendments
through the affordable housing energy efficiency provisions.
The other amendments are purely technical in nature, such as removing
duplicative provisions passed by other committees.
Finally, Madam Chairman, I want to thank the gentleman from
California (Mr. Pombo), chairman of the Committee on Resources; the
gentleman from California (Mr. Thomas), chairman of the Committee on
Ways and Means; the gentleman from New York (Mr. Boehlert), chairman of
the Committee on Science; the gentleman from Virginia (Mr. Tom Davis),
chairman of the Committee on Government Reform; the gentleman from
Alaska (Mr. Young), chairman of the Committee on Transportation and
Infrastructure, and their staffs, for helping us put together this
manager's amendment; and I ask for its adoption.
Madam Chairman, I reserve the balance of my time.
Mr. MARKEY. Mr. Chairman, I claim the time in opposition, and I yield
myself 3 minutes.
Madam Chairman, I rise in opposition to the Barton manager's
amendment. I have a number of concerns about the manager's amendment.

[[Page H2325]]

Let me just begin by saying that inside of the bill there was a
provision that I authored in the Committee on Energy and Commerce that
was accepted by the Chair, by the majority. And then, without any
consultation with me, this amendment has been taken out of the energy
bill by the manager's amendment which is being proposed here today.
Let me tell you a little bit about the change they are going to make
without any consultation with me.
Now, when you think of all the pollution that comes out of
smokestacks, that is created by the generation of electricity from
coal-fired plants or from gas-fired plants to create electricity, well,
that electricity is being created in order, for the most part, to keep
our lights on, our air-conditioning on, to make sure that we can live
in a modern society.
Now, at the Department of Energy, in the first 5 years of the Bush
administration, they have yet to have a new rulemaking that would
improve the efficiency of any of these appliances. Now, the cumulative
impact of that is that we are going to see, unfortunately, several
hundred new coal-fired or gas-fired generating plants constructed in
America.
Now, what does that mean? Well, in addition to the cost to consumers
who are going to have to pay for these new plants, you also have all of
the additional pollution. We have 8 million children with asthma. We
have a rise in breast cancer and prostate cancer and other diseases.
More than 50 percent of all disease is environmentally based, coming
from what we breathe, from the water that we drink.
The majority, in its wisdom, has decided they are going to impose no
burdens on anyone who makes any appliances in America, so they have to
improve their efficiency, which is very typical of the entire Bush
administration's approach to these technologies. But the impact of
having all of these window air conditioners, furnaces, lighting
fixtures, heat pumps, 3 years from now, 6 years from now, 10 years from
now being just as inefficient as they were 5 years ago is that all this
additional pollution has to go into the air: the carbon, the mercury,
the sulfur, the nitrous oxide that is inhaled by children in our
country. And I just think it is wrong, without any consultation with
me, to take my amendment and put it in this manager's amendment, to
have it deleted from the bill.
Madam Chairman, I reserve the balance of my time.
Mr. BARTON of Texas. Madam Chairman, how much time does the gentleman
from Texas (Mr. Hall) have?
The CHAIRMAN. The gentleman from Texas has 1 minute remaining.
Mr. BARTON of Texas. Would the gentleman from Texas (Mr. Hall) yield
to me 1 minute?
Mr. HALL. Madam Chairman, I yield 1 minute to the gentleman from
Texas (Mr. Barton).
Mr. BARTON of Texas. Madam Chairman, I do not think it is a surprise
that I rise in strong support of the Barton manager's amendment, since
I am the Barton who authored the amendment.
But I just want to tell my good friend from Massachusetts, whom I
just listened to extremely closely as he told his tale of woe about his
amendment being accepted in committee and not accepted in the manager's
amendment, we found out, as we went to implement it, that there were
some things we did not understand about his amendment.
Now, I am sure the gentleman explained it clearly and concisely, and
I was probably listening to one of my staffers and probably just did
not hear his explanation, but it was actually retroactive in
application.
Madam Chairman, had we accepted it and put it in the manager's
amendment, there would have been an immediate outcry to implement some
standards that were not yet implementable because it would have been
retroactive. That is the primary reason it is not in the manager's
amendment.
As we go to conference, we will continue to work with the
distinguished gentleman, and we probably can find some way to get some
part of it in in the conference. But that is the primary reason that
particular amendment is not in the manager's amendment.
Mr. MARKEY. Madam Chairman, I yield myself the balance of my time.
Here is the problem with the Bush administration. The Congress, over
the years, has passed any number of regulations that deal with the
issue of appliance efficiency, but the Bush administration is allergic
to energy efficiency. It just wants to put a big new gas station on top
of the Arctic wilderness or on top of any other pristine area in our
country rather than looking at the technological genius of our country
to find some way of improving our efficiency.
So even with regard to new standards in this manager's amendment,
they give this administration 6 years, 6 years, to come up with new
standards, even as the Bush administration has not done anything for
the first 5 years of its term of office at the height of an energy
crisis, knowing the consequence of all of this pollution going into the
atmosphere in terms of its impact upon the health of our country.
My colleagues, just so you know, women in Japan contract breast
cancer at only one-fifth the rate of American women. Women in Japan
contract breast cancer at only one-fifth the rate of American women.
Women in Japan contract breast cancer at only one-fifth the rate of
American women. After the family comes to America from Japan, they
contract it at the same rate as Americans. That means it is not in the
genes of the girls; it means it is in our air, it is in our water.
What this amendment does is, it says we are just going to build a
couple hundred more large electrical generating plants, coal and
natural gas, and just spew it into the atmosphere. Well, that is going
to be breathed in, all that mercury, all that sulfur and nitrous oxide,
and it is going to have a dramatically negative impact upon the health
of our country.
My colleagues, this is a bad amendment, and I really regret it is out
here and that my friend has proposed it.
The CHAIRMAN. All time has expired. The question is on the amendment
offered by the gentleman from Texas (Mr. Hall).
The amendment was agreed to.
The CHAIRMAN. It is now in order to consider amendment No. 2 printed
in House Report 109-49.

Amendment No. 2 Offered by Mr. Dingell

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

Amendment No. 2 offered by Mr. Dingell:
Title XII of H.R. 6 is amended by striking sections 1201
through 1235 and sections 1237 through 1298, by striking the
title heading, by inserting the following before title XIII,
by redesignating section 1236 (relating to native load
service obligation) as section 1233 of the following and
inserting such redesignated section 1233 after section 1232
of the following, and by making the necessary conforming
changes in the table of contents:

TITLE XII--ELECTRICITY

SECTION 1201. SHORT TITLE.

This title may be cited as the ``Electric Reliability Act
of 2005''.

Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) is amended by adding at the end the following:

``SEC. 215. ELECTRIC RELIABILITY.

``(a) Definitions.--For purposes of this section:
``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy transmission
network (or any portion thereof); and
``(B) electric energy from generation facilities needed to
maintain transmission system reliability.
The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term
includes requirements for the operation of existing bulk-
power system facilities and the design of planned additions
or modifications to such facilities to the extent necessary
to provide for reliable operation of the bulk-power system,
but the term does not include any requirement to enlarge such
facilities or to construct new transmission capacity or
generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so
that instability, uncontrolled separation, or cascading
failures of such system will not

[[Page H2326]]

occur as a result of a sudden disturbance or unanticipated
failure of system elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators
of other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(b) Jurisdiction and Applicability.--(1) The Commission
shall have jurisdiction, within the United States, over the
ERO certified by the Commission under subsection (c), any
regional entities, and all users, owners and operators of the
bulk-power system, including but not limited to the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk-power system shall comply with
reliability standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement
the requirements of this section not later than 180 days
after the date of enactment of this section.
``(c) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may
submit an application to the Commission for certification as
the Electric Reliability Organization. The Commission may
certify 1 such ERO if the Commission determines that such
ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners and
operators of the bulk-power system, while assuring fair
stakeholder representation in the selection of its directors
and balanced decisionmaking in any ERO committee or
subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and other
charges among end users for all activities under this
section;
``(C) provide fair and impartial procedures for enforcement
of reliability standards through the imposition of penalties
in accordance with subsection (e) (including limitations on
activities, functions, or operations, or other appropriate
sanctions);
``(D) provide for reasonable notice and opportunity for
public comment, due process, openness, and balance of
interests in developing reliability standards and otherwise
exercising its duties; and
``(E) provide for taking, after certification, appropriate
steps to gain recognition in Canada and Mexico.
The total amount of all dues, fees, and other charges
collected by the ERO in each of the fiscal years 2006 through
2015 and allocated under subparagraph (B) shall not exceed
$50,000,000.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or
modification to a reliability standard that it proposes to be
made effective under this section with the Commission.
``(2) The Commission may approve, by rule or order, a
proposed reliability standard or modification to a
reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest. The Commission shall give due
weight to the technical expertise of the Electric Reliability
Organization with respect to the content of a proposed
standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability
standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take
effect upon approval by the Commission.
``(3) The Electric Reliability Organization shall
rebuttably presume that a proposal from a regional entity
organized on an Interconnection-wide basis for a reliability
standard or modification to a reliability standard to be
applicable on an Interconnection-wide basis is just,
reasonable, and not unduly discriminatory or preferential,
and in the public interest.
``(4) The Commission shall remand to the Electric
Reliability Organization for further consideration a proposed
reliability standard or a modification to a reliability
standard that the Commission disapproves in whole or in part.
``(5) The Commission, upon its own motion or upon
complaint, may order the Electric Reliability Organization to
submit to the Commission a proposed reliability standard or a
modification to a reliability standard that addresses a
specific matter if the Commission considers such a new or
modified reliability standard appropriate to carry out this
section.
``(6) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or
agreement accepted, approved, or ordered by the Commission
applicable to a transmission organization. Such transmission
organization shall continue to comply with such function,
rule, order, tariff, rate schedule or agreement accepted
approved, or ordered by the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, it shall
order the ERO to develop and file with the Commission a
modified reliability standard under paragraph (4) or (5) of
this subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to
paragraph (2), a penalty on a user or owner or operator of
the bulk-power system for a violation of a reliability
standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the
Commission, on its own motion or upon application by the
user, owner or operator that is the subject of the penalty
filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or
the initiation of review by the Commission on its own motion,
shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon
application by the user, owner or operator that is the
subject of such penalty. In any proceeding to review a
penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may consist
solely of the record before the ERO and opportunity for the
presentation of supporting reasons to affirm, modify, or set
aside the penalty), shall by order affirm, set aside,
reinstate, or modify the penalty, and, if appropriate, remand
to the ERO for further proceedings. The Commission shall
implement expedited procedures for such hearings.
``(3) On its own motion or upon complaint, the Commission
may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards
under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced stakeholder
board.
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
``(5) The Commission may take such action as is necessary
or appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission
order affecting the ERO or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user,
owner, or operator to remedy the violation in a timely
manner.
``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of its basis and
purpose. The Commission, upon its own motion or complaint,
may propose a change to the rules of the ERO. A proposed rule
or proposed rule change shall take effect upon a finding by
the Commission, after notice and opportunity for comment,
that the change is just, reasonable, not unduly
discriminatory or preferential, is in the public interest,
and satisfies the requirements of subsection (c).

[[Page H2327]]

``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--The President
is urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness
of the ERO in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO shall have authority
to develop and enforce compliance with reliability standards
for only the bulk-power system.
``(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the
safety, adequacy, and reliability of electric service within
that State, as long as such action is not inconsistent with
any reliability standard, except that the State of New York
may establish rules that result in greater reliability within
that State, as long as such action does not result in lesser
reliability outside the State than that provided by the
reliability standards..
``(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
``(5) The Commission, after consultation with the ERO and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at
least \2/3\ of the States within a region that have more than
\1/2\ of their electric load served within the region. A
regional advisory body shall be composed of 1 member from
each participating State in the region, appointed by the
Governor of each State, and may include representatives of
agencies, States, and provinces outside the United States. A
regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether a
standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in
the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly
discriminatory or preferential, and in the public interest
and any other responsibilities requested by the Commission.
The Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
``(k) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 215(c) of the Federal Power Act and any regional
entity delegated enforcement authority pursuant to section
215(e)(4) of that Act are not departments, agencies, or
instrumentalities of the United States Government.
(c) Limitation on Annual Appropriations.--There is
authorized to be appropriated not more than $50,000,000 per
year for fiscal years 2006 through 2015 for all activities
under the amendment made by subsection (a).

Subtitle B--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 the following new
section:

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING
UTILITIES.

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL
TRANSMISSION ORGANIZATIONS.

[[Page H2328]]

(A) suspend, or exempt any Federal utility from, any
provision of existing Federal law, including but not limited
to any requirement or direction relating to the use of the
Federal utility's transmission system, environmental
protection, fish and wildlife protection, flood control,
navigation, water delivery, or recreation; or
(B) authorize abrogation of any contract or treaty
obligation.
(3) Repeal.--Section 311 of title III of Appendix B of the
Act of October 27, 2000 (P.L. 106-377, section 1(a)(2); 114
Stat. 1441, 1441A-80; 16 U.S.C. 824n) is repealed.

Subtitle C--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

(a) Adoption of Standards.--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) Net metering.--Each electric utility shall make
available upon request net metering service to any electric
consumer that the electric utility serves. For purposes of
this paragraph, 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.
``(12) Fuel sources.--Each electric utility shall develop a
plan to minimize dependence on 1 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.
``(13) Fossil fuel generation efficiency.--Each electric
utility shall develop and implement a 10-year plan to
increase the efficiency of its fossil fuel generation.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to each standard
established by paragraphs (11) through (13) of section
111(d).
``(B) Not later than 3 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to
each standard established by paragraphs (11) through (13) of
section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:
``In the case of each standard established by paragraphs (11)
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) of section 111(d) in the case of
any electric utility in a State if, before the enactment of
this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of each standard established by paragraphs (11)
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.

SEC. 1252. SMART METERING.

(a) In General.--Section 111(d) of the Public Utilities
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is
amended by adding at the end the following:
``(14) Time-based metering and communications.--
``(A) Not later than 18 months after the date of enactment
of this paragraph, each electric utility shall offer each of
its customer classes, and provide individual customers upon
customer request, a time-based rate schedule under which the
rate charged by the electric utility varies during different
time periods and reflects the variance, if any, in the
utility's costs of generating and purchasing electricity at
the wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and cost
through advanced metering and communications technology.
``(B) The types of time-based rate schedules that may be
offered under the schedule referred to in subparagraph (A)
include, among others--
``(i) time-of-use pricing whereby electricity prices are
set for a specific time period on an advance or forward
basis, typically not changing more often than twice a year,
based on the utility's cost of generating and/or purchasing
such electricity at the wholesale level for the benefit of
the consumer. Prices paid for energy consumed during these
periods shall be pre-established and known to consumers in
advance of such consumption, allowing them to vary their
demand and usage in response to such prices and manage their
energy costs by shifting usage to a lower cost period or
reducing their consumption overall;
``(ii) critical peak pricing whereby time-of-use prices are
in effect except for certain peak days, when prices may
reflect the costs of generating and/or purchasing electricity
at the wholesale level and when consumers may receive
additional discounts for reducing peak period energy
consumption; and
``(iii) real-time pricing whereby electricity prices are
set for a specific time period on an advanced or forward
basis, reflecting the utility's cost of generating and/or
purchasing electricity at the wholesale level, and may change
as often as hourly.
``(C) Each electric utility subject to subparagraph (A)
shall provide each customer requesting a time-based rate with
a time-based meter capable of enabling the utility and
customer to offer and receive such rate, respectively.
``(D) 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.
``(E) In a State that permits third-party marketers to sell
electric energy to retail electric consumers, such consumers
shall be entitled to receive the same time-based metering and
communications device and service as a retail electric
consumer of the electric utility.
``(F) Notwithstanding subsections (b) and (c) of section
112, each State regulatory authority shall, not later than 18
months after the date of enactment of this paragraph conduct
an investigation in accordance with section 115(i) and issue
a decision whether it is appropriate to implement the
standards set out in subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
(1) By inserting in subsection (b) after the phrase ``the
standard for time-of-day rates established by section
111(d)(3)'' the following: ``and the standard for time-based
metering and communications established by section
111(d)(14)''.
(2) By inserting in subsection (b) after the phrase ``are
likely to exceed the metering'' the following: ``and
communications''.
(3) By adding the at the end the following:
``(i) Time-Based Metering and Communications.--In making a
determination with respect to the standard established by
section 111(d)(14), the investigation requirement of section
111(d)(14)(F) shall be as follows: Each State regulatory
authority shall conduct an investigation and issue a decision
whether or not it is appropriate for electric utilities to
provide and install time-based meters and communications
devices for each of their customers which enable such
customers to participate in time-based pricing rate schedules
and other demand response programs.''.
(c) Federal Assistance on Demand Response.--Section 132(a)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2642(a)) is amended by striking ``and'' at the end of
paragraph (3), striking the period at the end of paragraph
(4) and inserting ``; and'', and by adding the following at
the end thereof:
``(5) technologies, techniques, and rate-making methods
related to advanced metering and communications and the use
of these technologies, techniques and methods in demand
response programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended
by adding the following at the end thereof:
``(d) Demand Response.--The Secretary shall be responsible
for--
``(1) educating consumers on the availability, advantages,
and benefits of advanced metering and communications
technologies, including the funding of demonstration or pilot
projects;
``(2) working with States, utilities, other energy
providers and advanced metering and communications experts to
identify and address barriers to the adoption of demand
response programs; and
``(3) not later than 180 days after the date of enactment
of the Energy Policy Act of 2005, providing Congress with a
report that identifies and quantifies the national benefits
of demand response and makes a recommendation on achieving
specific levels of such benefits by January 1, 2007.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--It is the policy of the United States to
encourage States to coordinate, on a regional basis, State
energy policies to provide reliable and affordable demand
response services to the public.

[[Page H2329]]

(2) Technical assistance.--The Secretary of Energy shall
provide technical assistance to States and regional
organizations formed by 2 or more States to assist them in--
(A) identifying the areas with the greatest demand response
potential;
(B) identifying and resolving problems in transmission and
distribution networks, including through the use of demand
response;
(C) developing plans and programs to use demand response to
respond to peak demand or emergency needs; and
(D) identifying specific measures consumers can take to
participate in these demand response programs.
(3) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the Commission
shall prepare and publish an annual report, by appropriate
region, that assesses demand response resources, including
those available from all consumer classes, and which
identifies and reviews--
(A) saturation and penetration rate of advanced meters and
communications technologies, devices and systems;
(B) existing demand response programs and time-based rate
programs;
(C) the annual resource contribution of demand resources;
(D) the potential for demand response as a quantifiable,
reliable resource for regional planning purposes; and
(E) steps taken to ensure that, in regional transmission
planning and operations, demand resources are provided
equitable treatment as a quantifiable, reliable resource
relative to the resource obligations of any load-serving
entity, transmission provider, or transmitting party.
(f) Federal Encouragement of Demand Response Devices.--It
is the policy of the United States that time-based pricing
and other forms of demand response, whereby electricity
customers are provided with electricity price signals and the
ability to benefit by responding to them, shall be
encouraged, and the deployment of such technology and devices
that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated. It
is further the policy of the United States that the benefits
of such demand response that accrue to those not deploying
such technology and devices, but who are part of the same
regional electricity entity, shall be recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(4)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to the standard
established by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to the
standard established by paragraph (14) of section 111(d).''.
(h) Failure to Comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering
Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility within
the previous 3 years; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such utility
within the previous 3 years.''.
(2) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.

Subtitle D--Market Transparency, Enforcement, and Consumer Protection

SEC. 1282. MARKET MANIPULATION.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

``(a) Prohibition.--No person or other entity (including an
entity described in section 201(f)) shall willfully and
knowingly enter into any contract or other arrangement to
execute a `round trip trade' for the purchase or sale of
electric energy at wholesale.
``(b) Definition.--For the purposes of this section, the
term `round trip trade' means a transaction, or combination
of transactions, in which a person or any other entity--
``(1) enters into a contract or other arrangement to
purchase from, or sell to, any other person or other entity
electric energy at wholesale;
``(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a
financially offsetting trade with such other person or entity
for the same such electric energy, at the same location,
price, quantity and terms so that, collectively, the purchase
and sale transactions in themselves result in no financial
gain or loss; and
``(3) enters into the contract or arrangement with a
specific intent to fraudulently affect reported revenues,
trading volumes, or prices.''.

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES.

(a) Unlawful Acts.--It shall be unlawful for any entity,
directly or indirectly, by the use of any means or
instrumentality of interstate commerce or of the mails to use
or employ, in 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, or the sale in interstate commerce of
natural gas for resale for ultimate public consumption for
domestic, commercial, industrial, or any other use, any
fraudulent, manipulative, or deceptive device or contrivance
in contravention of such rules and regulations as the Federal
Energy Regulatory Commission may prescribe as necessary or
appropriate in the public interest.
(b) Application of Federal Power Act to This Act.--The
provisions of section 307 through 309 and 313 through 317 of
the Federal Power Act shall apply to violations of the
Electric Reliability Act of 2005 in the same manner and to
the same extent as such provisions apply to entities subject
to Part II of the Federal Power Act.

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC UNDER
FEDERAL POWER ACT.

Part III of the Federal Power Act is amended by inserting
the following new section after section 319 and by
redesignating sections 320 and 321 as sections 321 and 322,
respectively:

``SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC.

``(a) Rule Required for Certain Waivers, Exemptions, Etc.--
Not later than 6 months after the enactment of this Act, the
Commission shall promulgate a rule establishing specific
criteria for providing an exemption, waiver, or other reduced
or abbreviated form of compliance with the requirements of
sections 204, 301, 304, and 305 (including any prospective
blanket order). Such criteria shall be sufficient to insure
that any such action taken by the Commission will be
consistent with the purposes of such requirements and will
otherwise protect the public interest.
``(b) Moratorium on Certain Waivers, Exemptions, Etc.--
After the date of enactment of this section, the Commission
may not issue, adopt, order, approve, or promulgate any
exemption, waiver, or other reduced or abbreviated form of
compliance with the requirements of section 204, 301, 304, or
305 (including any prospective blanket order) until after the
rule promulgated under subsection (a) has taken effect.
``(c) Previous Ferc Action.--The Commission shall undertake
a review, by rule or order, of each exemption, waiver, or
other reduced or abbreviated form of compliance described in
subsection (a) that was taken before the date of enactment of
this section. No such action may continue in force and effect
after the date 18 months after the date of enactment of this
section unless the Commission finds that such action complies
with the rule under subsection (a).
``(d) Exemption Under 204(f) not Applicable.--For purposes
of this section, in applying section 204, the provisions of
section 204(f) shall not apply.''.

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES AND
TRANSMISSION.

[[Page H2330]]

such transmission or sale as may be necessary to determine
whether any person has employed any fraudulent, manipulative,
or deceptive device or contrivance in contravention of rules
promulgated by the Commission.
``(2) Section 201(f) shall not limit the application of
this subsection.''.
(b) Natural Gas.--Section 8 of the Natural Gas Act is
amended by adding the following new subsection at the end
thereof:
``(d) The Commission shall, by rule or order, require each
person or other entity engaged in the transportation of
natural gas in interstate commerce, or the sale in interstate
commerce of natural gas for resale for ultimate public
consumption for domestic, commercial, industrial, or any
other use, and each broker, dealer, and power marketer
involved in any such transportation or sale, to maintain, and
periodically submit to the Commission, such records, in
electronic form, of each transaction relating to such
transmission or sale as may be necessary to determine whether
any person has employed any fraudulent, manipulative, or
deceptive device or contrivance in contravention of rules
promulgated by the Commission.''.

SEC. 1286. TRANSPARENCY.

(a) Definition.--As used in this section the term
``electric power or natural gas information processor'' means
any person engaged in the business of--
(1) collecting, processing, or preparing for distribution
or publication, or assisting, participating in, or
coordinating the distribution or publication of, information
with respect to transactions in or quotations involving the
purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas, or
(2) distributing or publishing (whether by means of a
ticker tape, a communications network, a terminal display
device, or otherwise) on a current and continuing basis,
information with respect to such transactions or quotations.
The term does not include any bona fide newspaper, news
magazine, or business or financial publication of general and
regular circulation, any self-regulatory organization, any
bank, broker, dealer, building and loan, savings and loan, or
homestead association, or cooperative bank, if such bank,
broker, dealer, association, or cooperative bank would be
deemed to be an electric power or natural gas information
processor solely by reason of functions performed by such
institutions as part of customary banking, brokerage,
dealing, association, or cooperative bank activities, or any
common carrier, as defined in section 3 of the Communications
Act of 1934, subject to the jurisdiction of the Federal
Communications Commission or a State commission, as defined
in section 3 of that Act, unless the Commission determines
that such carrier is engaged in the business of collecting,
processing, or preparing for distribution or publication,
information with respect to transactions in or quotations
involving the purchase or sale of electric power, natural
gas, the transmission of electric energy, or the
transportation of natural gas.
(b) Prohibition.--No electric power or natural gas
information processor may make use of the mails or any means
or instrumentality of interstate commerce--
(1) to collect, process, distribute, publish, or prepare
for distribution or publication any information with respect
to quotations for, or transactions involving the purchase or
sale of electric power, natural gas, the transmission of
electric energy, or the transportation of natural gas, or
(2) to assist, participate in, or coordinate the
distribution or publication of such information in
contravention of such rules and regulations as the Federal
Energy Regulatory Commission shall prescribe as necessary or
appropriate in the public interest to
(A) prevent the use, distribution, or publication of
fraudulent, deceptive, or manipulative information with
respect to quotations for and transactions involving the
purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas;
(B) assure the prompt, accurate, reliable, and fair
collection, processing, distribution, and publication of
information with respect to quotations for and transactions
involving the purchase or sale of electric power, natural
gas, the transmission of electric energy, or the
transportation of natural gas, and the fairness and
usefulness of the form and content of such information;
(C) assure that all such information processors may, for
purposes of distribution and publication, obtain on fair and
reasonable terms such information with respect to quotations
for and transactions involving the purchase or sale of
electric power, natural gas, the transmission of electric
energy, or the transportation of natural gas as is collected,
processed, or prepared for distribution or publication by any
exclusive processor of such information acting in such
capacity;
(D) assure that, subject to such limitations as the
Commission, by rule, may impose as necessary or appropriate
for the maintenance of fair and orderly markets, all persons
may obtain on terms which are not unreasonably discriminatory
such information with respect to quotations for and
transactions involving the purchase or sale of electric
power, natural gas, the transmission of electric energy, or
the transportation of natural gas as is published or
distributed by any electric power or natural gas information
processor;
(E) assure that all electricity and natural gas electronic
communication networks transmit and direct orders for the
purchase and sale of electricity or natural gas in a manner
consistent with the establishment and operation of an
efficient, fair, and orderly market system for electricity
and natural gas; and
(F) assure equal regulation of all markets involving the
purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas and all persons effecting transactions involving
the purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas.
(c) Related Commodities.--For purposes of this section, the
phrase ``purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas'' includes the purchase or sale of any commodity
(as defined in the Commodities Exchange Act) relating to any
such purchase or sale if such commodity is excluded from
regulation under the Commodities Exchange Act pursuant to
section 2 of that Act.
(d) Prohibition.--No person who owns, controls, or is under
the control or ownership of a public utility, a natural gas
company, or a public utility holding company may own,
control, or operate any electronic computer network or other
mulitateral trading facility utilized to trade electricity or
natural gas.

SEC. 1287. PENALTIES.

(a) Criminal Penalties.--Section 316 of the Federal Power
Act (16 U.S.C. 825o(c)) is amended as follows:
(1) By striking ``$5,000'' in subsection (a) and inserting
``$5,000,000 for an individual and $25,000,000 for any other
defendant'' and by striking out ``two years'' and inserting
``five years'' .
(2) By striking ``$500'' in subsection (b) and inserting
``$1,000,000''.
(3) By striking subsection (c).
(b) Civil Penalties.--Section 316A of the Federal Power Act
(16 U.S.C. 825o091) is amended as follows:
(1) By striking ``section 211, 212, 213, or 214'' each
place it appears and inserting ``Part II''.
(2) By striking ``$10,000 for each day that such violation
continues'' and inserting ``the greater of $1,000,000 or
three times the profit made or gain or loss avoided by reason
of such violation''.
(3) By adding the following at the end thereof:
``(c) Authority of a Court to Prohibit Persons From Certain
Activities.--In any proceeding under this section, the court
may censure, place limitations on the activities, functions,
or operations of, suspend or revoke the ability of any entity
(without regard to section 201(f)) to participate in the
transmission of electric energy in interstate commerce or the
sale of electric energy at wholesale in interstate commerce
if it finds that such censure, placing of limitations,
suspension, or revocation is in the public interest and that
one or more of the following applies to such entity:
``(1) Such entity has willfully made or caused to be made
in any application or report required to be filed with the
Commission or with any other appropriate regulatory agency,
or in any proceeding before the Commission, any statement
which was at the time and in the light of the circumstances
under which it was made false or misleading with respect to
any material fact, or has omitted to state in any such
application or report any material fact which is required to
be stated therein.
``(2) Such entity has been convicted of any felony or
misdemeanor or of a substantially equivalent crime by a
foreign court of competent jurisdiction which the court
finds--
``(A) involves the purchase or sale of electricity, the
taking of a false oath, the making of a false report,
bribery, perjury, burglary, any substantially equivalent
activity however denominated by the laws of the relevant
foreign government, or conspiracy to commit any such offense;
``(B) arises out of the conduct of the business of
transmitting electric energy in interstate commerce or
selling or purchasing electric energy at wholesale in
interstate commerce;
``(C) involves the larceny, theft, robbery, extortion,
forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of
funds, or securities, or substantially equivalent activity
however denominated by the laws of the relevant foreign
government; or
``(D) involves the violation of section 152, 1341, 1342, or
1343 or chapter 25 or 47 of title 18, United States Code, or
a violation of a substantially equivalent foreign statute.
``(3) Such entity is permanently or temporarily enjoined by
order, judgment, or decree of any court of competent
jurisdiction from acting as an investment adviser,
underwriter, broker, dealer, municipal securities dealer,
government securities broker, government securities dealer,
transfer agent, foreign person performing a function
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or as an affiliated person or employee of any
investment company, bank, insurance company, foreign entity
substantially equivalent to any of the above, or entity or
person required to be registered under

[[Page H2331]]

the Commodity Exchange Act or any substantially equivalent
foreign statute or regulation, or from engaging in or
continuing any conduct or practice in connection with any
such activity, or in connection with the purchase or sale of
any security.
``(4) Such entity has willfully violated any provision of
this Act.
``(5) Such entity has willfully aided, abetted, counseled,
commanded, induced, or procured the violation by any other
person of any provision of this Act, or has failed reasonably
to supervise, with a view to preventing violations of the
provisions of this Act, another person who commits such a
violation, if such other person is subject to his
supervision. For the purposes of this paragraph no person
shall be deemed to have failed reasonably to supervise any
other person, if--
``(A) there have been established procedures, and a system
for applying such procedures, which would reasonably be
expected to prevent and detect, insofar as practicable, any
such violation by such other person, and
``(B) such person has reasonably discharged the duties and
obligations incumbent upon him by reason of such procedures
and system without reasonable cause to believe that such
procedures and system were not being complied with.
``(6) Such entity has been found by a foreign financial or
energy regulatory authority to have--
``(A) made or caused to be made in any application or
report required to be filed with a foreign regulatory
authority, or in any proceeding before a foreign financial or
energy regulatory authority, any statement that was at the
time and in the light of the circumstances under which it was
made false or misleading with respect to any material fact,
or has omitted to state in any application or report to the
foreign regulatory authority any material fact that is
required to be stated therein;
``(B) violated any foreign statute or regulation regarding
the transmission or sale of electricity or natural gas;
``(C) aided, abetted, counseled, commanded, induced, or
procured the violation by any person of any provision of any
statutory provisions enacted by a foreign government, or
rules or regulations thereunder, empowering a foreign
regulatory authority regarding transactions in electricity or
natural gas, or contracts of sale of electricity or natural
gas, traded on or subject to the rules of a contract market
or any board of trade, or has been found, by a foreign
regulatory authority, to have failed
reasonably to supervise, with a view to preventing violations
of such statutory provisions, rules, and regulations, another
person who commits such a violation, if such other person is
subject to his supervision.
``(7) Such entity is subject to any final order of a State
commission (or any agency or officer performing like
functions), State authority that supervises or examines
banks, savings associations, or credit unions, State
insurance commission (or any agency or office performing like
functions), an appropriate Federal banking agency (as defined
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), or the National Credit Union Administration,
that--
``(A) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
``(B) constitutes a final order based on violations of any
laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.''
(4) Such entity is subject to statutory disqualification
within the meaning of section 3(a)(39) of the Securities
Exchange Act of 1934.".
(c) Natural Gas Act Penalties.--Section 21 of the Natural
Gas Act is amended by adding the following new subsection at
the end thereof:
``(c) Authority of a Court to Prohibit Persons From Certain
Activities.--In any proceeding under this section, the court
may censure, place limitations on the activities, functions,
or operations of, suspend or revoke the ability of any entity
(without regard to section 201(f)) to participate in the
transportation of natural gas in interstate commerce, or the
sale in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial,
industrial, or any other use if it finds that such censure,
placing of limitations, suspension, or revocation is in the
public interest and that one or more of the following applies
to such entity:
``(1) Such entity has willfully made or caused to be made
in any application or report required to be filed with the
Commission or with any other appropriate regulatory agency,
or in any proceeding before the Commission, any statement
which was at the time and in the light of the circumstances
under which it was made false or misleading with respect to
any material fact, or has omitted to state in any such
application or report any material fact which is required to
be stated therein.
``(2) Such entity has been convicted of any felony or
misdemeanor or of a substantially equivalent crime by a
foreign court of competent jurisdiction which the court
finds--
``(A) involves the purchase or sale of natural gas, the
taking of a false oath, the making of a false report,
bribery, perjury, burglary, any substantially equivalent
activity however denominated by the laws of the relevant
foreign government, or conspiracy to commit any such offense;
``(B) arises out of the conduct of the business of
transmitting natural gas in interstate commerce, or the
selling in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial,
industrial, or any other use;
``(C) involves the larceny, theft, robbery, extortion,
forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of
funds, or securities, or substantially equivalent activity
however denominated by the laws of the relevant foreign
government; or
``(D) involves the violation of section 152, 1341, 1342, or
1343 or chapter 25 or 47 of title 18, United States Code, or
a violation of a substantially equivalent foreign statute.
``(3) Such entity is permanently or temporarily enjoined by
order, judgment, or decree of any court of competent
jurisdiction from acting as an investment adviser,
underwriter, broker, dealer, municipal securities dealer,
government securities broker, government securities dealer,
transfer agent, foreign person performing a function
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or as an affiliated person or employee of any
investment company, bank, insurance company, foreign entity
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or from engaging in or continuing any conduct or
practice in connection with any such activity, or in
connection with the purchase or sale of any security.
``(4) Such entity has willfully violated any provision of
this Act.
``(5) Such entity has willfully aided, abetted, counseled,
commanded, induced, or procured the violation by any other
person of any provision of this Act, or has failed reasonably
to supervise, with a view to preventing violations of the
provisions of this Act, another person who commits such a
violation, if such other person is subject to his
supervision. For the purposes of this paragraph no person
shall be deemed to have failed reasonably to supervise any
other person, if--
``(A) there have been established procedures, and a system
for applying such procedures, which would reasonably be
expected to prevent and detect, insofar as practicable, any
such violation by such other person, and
``(B) such person has reasonably discharged the duties and
obligations incumbent upon him by reason of such procedures
and system without reasonable cause to believe that such
procedures and system were not being complied with.
``(6) Such entity has been found by a foreign financial or
energy regulatory authority to have--
``(A) made or caused to be made in any application or
report required to be filed with a foreign regulatory
authority, or in any proceeding before a foreign financial or
energy regulatory authority, any statement that was at the
time and in the light of the circumstances under which it was
made false or misleading with respect to any material fact,
or has omitted to state in any application or report to the
foreign regulatory authority any material fact that is
required to be stated therein;
``(B) violated any foreign statute or regulation regarding
the transmission or sale of electricity or natural gas;
``(C) aided, abetted, counseled, commanded, induced, or
procured the violation by any person of any provision of any
statutory provisions enacted by a foreign government, or
rules or regulations thereunder, empowering a foreign
regulatory authority regarding transactions in electricity or
natural gas, or contracts of sale of electricity or natural
gas, traded on or subject to the rules of a contract market
or any board of trade, or has been found, by a foreign
regulatory authority, to have failed reasonably to supervise,
with a view to preventing violations of such statutory
provisions, rules, and regulations, another person who
commits such a violation, if such other person is subject to
his supervision.
``(7) Such entity is subject to any final order of a State
commission (or any agency or officer performing like
functions), State authority that supervises or examines
banks, savings associations, or credit unions, State
insurance commission (or any agency or office performing like
functions), an appropriate Federal banking agency (as defined
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), or the National Credit Union Administration,
that--
``(A) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
``(B) constitutes a final order based on violations of any
laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.
``(8) Such entity is subject to statutory disqualification
within the meaning of section 3(a)(39) of the Securities
Exchange Act of 1934.''.

[[Page H2332]]

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS.

Not later than 12 months after the enactment of this Act
the Securities and Exchange Commission shall review each
exemption granted to any person under section 3(a) of the
Public Utility Holding Company Act of 1935 and shall review
the action of persons operating pursuant to a claim of exempt
status under section 3 to determine if such exemptions and
claims are consistent with the requirements of such section
3(a) and whether or not such exemptions or claims of
exemption should continue in force and effect.

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN
ENERGY TRADING.

Not later than 12 months after the enactment of this Act,
the Comptroller General of the United States shall submit to
the Congress a report of the results of its review of
accounting for contracts in energy trading and risk
management activities. The review and report shall include,
among other issues, the use of mark-to-market accounting and
when gains and losses should be recognized, with a view
toward improving the transparency of energy trading
activities for the benefit of investors, consumers, and the
integrity of these markets.

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES.

Section 205 of the Federal Power Act is amended by adding
after subsection (f) the following new subsection:
``(g) Rules and Procedures to Protect Consumers of Public
Utilities.--Not later than 9 months after the date of
enactment of this Act, the Commission shall adopt rules and
procedures for the protection of electric consumers from
self-dealing, interaffiliate abuse, and other harmful actions
taken by persons owning or controlling public utilities. Such
rules shall ensure that no asset of a public utility company
shall be used as collateral for indebtedness incurred by the
holding company of, and any affiliate of, such public utility
company, and no public utility shall acquire or own any
securities of the holding company or other affiliates of the
holding company unless the Commission has determined that
such acquisition or ownership is consistent with the public
interest and the protection of consumers of such public
utility.''.

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT.

Section 206(b) of the Federal Power Act is amended as
follows:
(1) By amending the first sentence to read as follows: ``In
any proceeding under this section, the refund effective date
shall be the date of the filing of a complaint or the date of
the Commission motion initiating the proceeding, except that
in the case of a complaint with regard to market-based rates,
the Commission may establish an earlier refund effective
date.''.
(2) By striking the second and third sentences.
(3) By striking out ``the refund effective date or by'' and
``, whichever is earlier,'' in the fifth sentence.
(4) In the seventh sentence by striking ``through a date
fifteen months after such refund effective date'' and insert
``and prior to the conclusion of the proceeding'' and by
striking the proviso.

SEC. 1292. ACCOUNTS AND REPORTS.

Section 318 of the Federal Power Act is amended by adding
the following at the end thereof: ``This section shall not
apply to sections 301 and 304 of this Act.''.

SEC. 1293. MARKET-BASED RATES.

Section 205 of the Federal Power Act is amended by adding
the following new subsection at the end thereof:
``(g) For each public utility granted the authority by the
Commission to sell electric energy at market-based rates, the
Commission shall review the activities and characteristics of
such utility not less frequently than annually to determine
whether such rates are just and reasonable. Each such utility
shall notify the Commission promptly of any change in the
activities and characteristics relied upon by the Commission
in granting such public utility the authority to sell
electric energy at market-based rates. If the Commission
finds that:
``(1) a rate charged by a public utility authorized to sell
electric energy at market-based rates is unjust,
unreasonable, unduly discriminatory or preferential,
``(2) the public utility has intentionally engaged in an
activity that violates any other rule, tariff, or order of
the Commission, or
``(3) any violation of the Electric Reliability Act of
2005,
the Commission shall issue an order immediately modifying or
revoking the authority of that public utility to sell
electric energy at market-based rates.''.

SEC. 1294. ENFORCEMENT.

SEC. 1295. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

(a) Privacy.--The Federal Trade Commission may issue rules
protecting the privacy of electric consumers from the
disclosure of consumer information obtained in connection
with the sale or delivery of electric energy to electric
consumers.
(b) Slamming.--The Federal Trade Commission may issue rules
prohibiting the change of selection of an electric utility
except with the informed consent of the electric consumer or
if approved by the appropriate State regulatory authority.
(c) Cramming.--The Federal Trade Commission may issue rules
prohibiting the sale of goods and services to an electric
consumer unless expressly authorized by law or the electric
consumer.
(d) Rulemaking.--The Federal Trade Commission shall proceed
in accordance with section 553 of title 5, United States
Code, when prescribing a rule under this section.
(e) State Authority.--If the Federal Trade Commission
determines that a State's regulations provide equivalent or
greater protection than the provisions of this section, such
State regulations shall apply in that State in lieu of the
regulations issued by the Commission under this section.
(f) Definitions.--For purposes of this section:
(1) State regulatory authority.--The term ``State
regulatory authority'' has the meaning given that term in
section 3(21) of the Federal Power Act (16 U.S.C. 796(21)).
(2) Electric consumer and electric utility.--The terms
``electric consumer'' and ``electric utility'' have the
meanings given those terms in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
``(d) The Commission shall, by rule or order, require each
person or other entity engaged in the transportation of
natural gas in interstate commerce, or the sale in interstate
commerce of natural gas for resale for ultimate public
consumption for domestic, commercial, industrial, or any
other use, and each broker, dealer, and power marketer
involved in any such transportation or sale, to maintain, and
periodically submit to the Commission, such records, in
electronic form, of each transaction relating to such
transmission or sale as may be necessary to determine whether
any person has employed any fraudulent, manipulative, or
deceptive device or contrivance in contravention of rules
promulgated by the Commission.''.

SEC. 1296. SAVINGS PROVISION.

The CHAIRMAN. Pursuant to House Resolution 219, the gentleman from
Michigan (Mr. Dingell) and the gentleman from Texas (Mr. Barton) each
will control 10 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Dingell).
Mr. DINGELL. Madam Chairman, I yield myself 3 minutes.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Madam Chairman, it is regrettable indeed that we
function under such a constrained rule, but the amendment which I have
been permitted to offer here contains real benefits for electricity
consumers and includes many of the reforms that I and other of my
colleagues have proposed in committee markups, on the House floor, and
in conference during consideration of various energy bills.
First, the amendment would prevent future Enron-like debacles by
providing the Federal Energy Regulatory Commission with broad authority
to deter and punish fraudulent behavior that distorts electricity and
natural gas markets.

{time} 1715

Enron's ingenuity demonstrates how difficult it is for regulators to
foresee, punish, prevent, and correct every type of misconduct. A
recent FERC report concluded, ``Currently, the Commission has few
remedies to address misconduct by market participants.''
Second, my amendment addresses an important real electricity concern,
the need to ensure that the FERC has the authority to issue orders
requiring refunds for all electricity overcharges. Regrettably, that is
not now the case. The skill and arts of Enron and Enron-like rascals
will enable them to escape much of the refunds which they should

[[Page H2333]]

make after the most active kind of wrong doing, as we saw in the
western part of the United States.
Third, the amendment does not repeal the Public Utility Holding
Company Act of 1935 without which Enron would certainly have purchased
more utilities than it did, sunk its tentacles even more deeply into
the electric industry, and skinned more consumers and innocent buyers
of electricity.
The amendment requires the SEC to review a company's existing
exemptions under the act to make sure they do not assert false claim,
as the commission belatedly determined Enron had done.
With due respect to the gentleman from Texas (Mr. Barton), I believe
my amendment provides a far better alternative for consumers than the
wholly inadequate provisions of H.R. 6. H.R. 6 includes only limited
cosmetic changes to current Federal electricity law. It outlaws
``roundtrip trading'' and filing of false information, but offers no
protection against schemes liken Enron's Death Star, Get Shorty, or
Richochet.
Moreover, H.R. 6 does not authorize FERC to grant full refunds to
consumers who were skinned by inflated electricity prices, but rather
allows refunds only from the date when the complaint is filed.
Finally, H.R. 6 repeals PUHCA, leaving consumers and investors even
more vulnerable to deception by Enron-type players who concoct
``special purpose entities'' to move money around while hiding behind
complex, opaque corporate structures. I would note a recent Standard &
Poor report states: ``Utility investment in non-core businesses has
been responsible for most of the credit deterioration in the utility
industry.'' I urge my colleagues to adopt the amendment.
Mr. BARTON of Texas. Madam Chairman, I yield myself 4 minutes.
Madam Chairman, first, I rise in opposition to the Dingell
substitute. I do want the record to show that I supported at the
Committee on Rules that it be made in order so we could have a full
debate.
The Dingell substitute, if it were actually to be implemented into
the bill and become law, would go far beyond anything currently being
considered in the electricity sector. It would increase the fines
already under the bill that go up to $1 million. The Dingell substitute
would take that to $5 million and in some cases $25 million. I will
admit with the gentleman from Michigan that the current fine is
insignificant. I think it is $5,000, and we need to increase that. So
the bill takes it to $1 million. The Dingell substitute would take it
to between $5 million and $25 million.
The Dingell substitute does not repeal PUHCA. The bill before us does
repeal the Public Utility Holding Company Act, but the bill before us
keeps in order the reporting requirements under PUHCA so the SEC would
have the ability to maintain analysis of records and things like that
of the companies that are subject to PUHCA.
The Dingell substitute would require retroactive refunds for market-
based rates. It would go back into contracts that have already been
executed and electricity is being consumed and money for that
electricity has been paid, and for the first time create a retroactive
refund. I think that is unwise and unnecessary.
Basically, I would say that the Dingell substitute is well
intentioned; but in some cases it goes too far, and in some cases it is
silent on the underlying bill. I would hope we would oppose it and keep
the base text of the bill that is before us.
Madam Chairman, I reserve the balance of my time.
Mr. DINGELL. Madam Chairman, I yield 2 minutes to the gentleman from
Virginia (Mr. Boucher).
(Mr. BOUCHER asked and was given permission to revise and extend his
remarks.)
Mr. BOUCHER. Madam Chairman, I thank the gentleman from Michigan (Mr.
Dingell) for yielding me this time, and I want to commend the gentleman
for bringing this very important substitute for the electricity title
in the bill before the House this afternoon. I strongly support the
substitute for the electricity provisions in the bill put forward by
the gentleman from Michigan (Mr. Dingell).
The Dingell amendment would improve current law in a number of ways.
It would enhance the FERC's ability to deter and punish parties that
engage in fraudulent activities that harm consumers. It would create
reporting requirements based on the record-keeping requirements under
the Federal securities laws for all wholesale energy transactions. It
would increase civil and criminal penalties under the Federal Power Act
modeled on the penalties established in the Sarbanes-Oxley law. It
would direct the FERC to review approved market-based rates on an
annual basis to remain sure that they are fair and reasonable as
circumstances change.
Unfortunately, one of the things that we have learned during the last
few years is that the energy markets are ripe for manipulation. The
Dingell substitute would modernize our laws to give the FERC the
necessary tools to prevent and, if necessary, punish the entities that
engage in fraudulent conduct.
In addition to the strong consumer protection and antifraud
provisions, the Dingell amendment also retains the less controversial
and very useful parts of the electricity title, including the much-
needed reliability provisions for transmission lines, the net metering
and smart metering provisions and FERC Lite, to name other provisions.
The Dingell substitute would be a positive addition to the Federal
law, ensuring that wholesale electricity markets operate in an
efficient and equitable manner. I strongly support the Dingell
substitute and urge its approval by the House.
Mr. BARTON of Texas. Madam Chairman, I yield 2 minutes to the
gentleman from New Hampshire (Mr. Bass), a member of the committee.
Mr. BASS. Madam Chairman, I rise in opposition to the amendment
offered by the gentleman from Michigan (Mr. Dingell). Basically, this
guts the whole bill. It substitutes a power act amendment for the
entire bill. It, frankly, goes far beyond anything being considered
currently in the electricity debate, particularly with respect to
utility security, FERC rate-making authority, reporting requirements,
and industry accounting.
In addition, this amendment would fundamentally rewrite portions of
the Natural Gas Act, something that is clearly outside the scope of
this debate. I point out that the amendment is opposed by the Edison
Electric Institute, the American Public Power Association, and the
National Rural Electric Cooperative Association. Those are the co-ops.
It does not help site new transmission that is needed to ensure
reliability and provide adequate supplies of affordable electricity to
consumers. It does not repeal PUHCA, which facilitates the construction
of new construction and promotes badly needed investment in the
electric utility industry. It does not amend PURPA to reform the
contract process and save constituents money, and it does not promote
certainty of contract that is necessary to promote investment and
better market operation by putting all market-based contracts at risk.
It does not provide FERC the flexibility needed to regulate markets
that develop in the future by issuing prescriptive rules, procedures,
and penalties.
What the amendment does do, unfortunately, is create market
uncertainty, it imposes excessive penalties, and it institutes almost
continuous investigation of all utilities with market-based rates, not
only burdening utilities, but also burdening FERC and stretching its
resources.
Madam Chairman, I hope that the Congress will join me and other like-
minded colleagues in opposing this amendment.
Mr. DINGELL. Madam Chairman, I yield 2\1/2\ minutes to the
gentlewoman from California (Ms. Eshoo).
Ms. ESHOO. Madam Chairman, I want to speak to one aspect of this very
important consumer protection amendment, and that is what the amendment
is: it protects consumers. The issue I want to talk about is refund
authority.
Can there be any doubt today that Western consumers were gouged as a
result of energy market manipulation in 2000 and 2001? Can there be any
doubt that refunds are owed? So when a Member rises on the floor and
talks about retroactive and it is not fair to have something
retroactive, we have to have the arm of the law reach back so

[[Page H2334]]

consumers are refunded the dollars that they were ripped off.
Madam Chairman, 5 years after the crisis in California, no refunds
have been ordered because for 5 years the Federal Energy Regulatory
Commission has insisted it does not have the authority to order the
retroactive refunds that will fully compensate consumers. FERC knows
the evidence, and here it is: one, Enron memos reveal that the energy
trading company implemented elaborate market manipulation strategies to
drive up prices. The Enron memos gave these ploys names like Fat Boy,
Death Star, and Get Shorty.
Number two, audio tapes of Enron energy traders surfaced that
confirmed the existence of secret deals with power producers that
deliberately drove up prices by ordering power plants shut down.
Number three, transcripts of Reliant Energy traders from 2000
revealed that Reliant power plant operators deliberately kept power
offline in order to increase energy prices at the height of the crisis.
Four, on March 3, 2003, a coalition of California governmental
entities and public utilities presented the FERC with more than 1,000
pages of evidence documenting a ``pervasive pattern of market
manipulation that resulted in disastrous effects on prices and
reliability.'' And in March 2003, the FERC confirmed that significant
power manipulation had taken place in the West.
This amendment gives the FERC broad authority to order retroactive
refunds for market-based rates that are not just and reasonable. For
California, billions are at stake. I urge a vote for this amendment.
Last fall Governor Schwarzenegger said, ``Californians deserve refunds
to fairly compensate them for the excessively high prices they paid
during the energy crisis.''
Mr. BARTON of Texas. Madam Chairman, I yield myself such time as I
may consume for the purpose of responding to the gentlewoman from
California (Ms. Eshoo) and also to enter into a colloquy with the
gentleman from New Hampshire.
First, let me simply say I understand the concern of the gentlewoman
from California (Ms. Eshoo) about the situation in the power markets in
California 4 to 5 years ago, and I know she feels more needs to be
done. As we speak, there is litigation in process to have more done in
that area.
I will say on the record, hundreds of millions, if not billions, of
dollars have been reclaimed, indictments have been brought, cases have
gone to court and convictions obtained and people sent to jail for some
of the transgressions the gentlewoman alluded to.

{time} 1730

While it is obvious that she feels more needs to be done, I think it
does need to be stated on the record that quite a bit already has been
done.
Madam Chairman, I yield to the gentleman from New Hampshire (Mr.
Bass).
Mr. BASS. I thank the gentleman for yielding.
Madam Chairman, over the past several months, the gentleman from
Texas and I have worked toward a fair and equitable solution to the
problem of contamination caused by MTBE getting into our groundwater
and other waters. I appreciate all his efforts and the faith he has
placed in me on this issue which is so critical to New Hampshire, a
State that has been affected significantly and, obviously, other
affected States.
Like him, I had hoped that we would be able to have our solution
ready for today's House consideration of the Energy Policy Act.
However, I am not satisfied that what we have agreed upon in principle
is sufficient to the problem or comprehensive enough to have my
support, and I would rather not rush it simply for the sake of being
done today.
Does the gentleman agree that spending additional time will result in
an improved product that will provide a mechanism to ensure that our
drinking water is clean and safe today and into the future?
Mr. BARTON of Texas. Madam Chairman, I agree with the gentleman from
New Hampshire. He and I have been working toward a solution to the
contamination problem in New Hampshire and across the Nation. If he is
not satisfied with the solution thus far, then I am not satisfied with
it either, and I agree with him that more must and will be done.
With the time that we will have to continue our already significant
progress, I appreciate his commitment to reach out to other Members
with similar problems like his. Committee staff and I stand ready to
assist in every way and are fully committed to resolving the problem
before the bill is presented to the President for enactment.
Mr. BASS. I thank the gentleman for those comments.
Does the gentleman also agree that the principles we have established
so far, including a fair funding system, strict cleanup standard and an
appropriate amount of time for contamination discovery will be
safeguarded in the final product unless equivalent mechanisms can be
developed?
Mr. BARTON of Texas. I agree with that statement, also. The
principles the gentleman has outlined should be part of the solution. I
am confident that our work will adequately satisfy New Hampshire and
other contaminated States with problems similar to his State's.
Madam Chairman, I will just say that we are in opposition to the
Dingell substitute and would urge a ``no'' vote at the appropriate
time.
Madam Chairman, I yield back the balance of my time.
The CHAIRMAN. Without objection, the gentleman from Massachusetts
(Mr. Markey) will control the balance of the time.
There was no objection.
Mr. MARKEY. Madam Chairman, I yield myself 1\1/2\ minutes.
The provisions which are in the bill already are good. It is that
they just do not go far enough to deal with this electricity crisis
that we saw that went across the country.
What the Dingell amendment does is very simple. It creates an
antifraud authority at the Federal Energy Regulatory Commission with
tough, new criminal and civil penalties. It ensures, in other words,
that they can get the real job done.
It also provides real transparency on pricing and trading of
electricity in this marketplace. It also prohibits self-dealing,
interaffiliate dealing. All of the kinds of activities which were
identified in the aftermath of the Enron and the related scandals is
prohibited; and the authority is given to the FERC in order to make
sure that they get the job done. This is the needed final piece to make
sure we do not see a repetition of what happened at Enron.
Vote ``aye'' on the Dingell amendment.
Madam Chairman, I yield the balance of my time to the gentleman from
Michigan (Mr. Dingell).
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Madam Chairman, if my colleagues want a replication of
Enron and the abuses, the stealing, the dishonesty that hurt
pensioners, retirees, shareholders, others in the industry, hundreds
and hundreds of ratepayers and hurt the structure of the States in the
western United States, then vote against this amendment.
This amendment stops self-dealing. This amendment requires that there
be repayment of money wrongfully taken. It allows FERC and the SEC to
provide the necessary steps that will stop Enrons and others like Enron
from doing what Enron did, which caused such desperate hurt to millions
of Americans in the western United States.
My amendment does go further than anything else being considered.
Enron's abuses went further than anyone expected, far beyond, and they
shook the entire electric industry. But it also hurt consumers, States,
and also retirees and pensioners and shareholders.
This amendment will stop that abuse. I urge my colleagues to vote for
it.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Michigan (Mr. Dingell).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. DINGELL. Madam Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings
on the amendment offered by the gentleman from Michigan (Mr. Dingell)
will be postponed.
It is now in order to consider amendment No. 3 printed in House
Report 109-49.

[[Page H2335]]

Amendment No. 3 Offered by Mr. Markey

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

Amendment No. 3 offered by Mr. Markey:
Strike title XXII.

The CHAIRMAN. Pursuant to House Resolution 219, the gentleman from
Massachusetts (Mr. Markey) and the gentleman from California (Mr.
Pombo) each will control 15 minutes.
The Chair recognizes the gentleman from Massachusetts (Mr. Markey).
Mr. MARKEY. Madam Chairman, I yield myself 3 minutes.
The Arctic National Wildlife Refuge is a national treasure, a place
of ancient wilderness that remains much the same as it was at the end
of the last Ice Age. It is one of the few places remaining in America
where man has not scarred the land. It is a place where roads do not
pave the way and where the animals truly do roam free. The refuge is
home to the 130,000-strong porcupine caribou herd as well as polar
bears, musk oxen and even more than 130 species of migratory birds.
All wildlife refuges have, by bipartisan consensus, been set aside to
ensure that a few special places, natural places, will not succumb to
the pressures of commercial exploitation. The Arctic refuge is one of
the most unique wild and irreplaceable refuges of all. If we allow the
oil and gas drillers into this refuge, we might as well say good-bye to
protection of all 544 refuges in this country.
The Arctic National Wildlife Refuge is the crown jewel of the
wildlife refuge system in the United States. Of those 544 refuges, it
is estimated that 60 percent of them have the potential for oil and gas
development. Overturning the 39-year precedent of never leasing a
wildlife refuge to the oil companies where leases did not previously
exist will set in motion a series of events that will endanger each of
the other 543 refuges spread throughout the States and districts of the
Members of this body.
Besides the wildlife refuges, drilling in the Arctic refuge is widely
seen as the first step in lifting the moratoria on drilling on the
outer continental shelf of the Atlantic and Pacific coasts,
specifically in Florida and California.
The chairman of ExxonMobil recently said that drilling in the Arctic
refuge is representative of the broader issue of whether drilling will
be allowed in other environmentally sensitive places such as the coasts
of California and Florida. In a 2003 speech to the Republican Caucus,
House Majority Leader Tom DeLay proclaimed the issue of the Arctic
refuge is about precedent and repeatedly referred to its symbolism.
Matthew Simmons, an oil industry banker and former Bush adviser,
recently told the New York Times that if you cannot do ANWR, you will
never be able to drill in the promising areas.
Ladies and gentlemen, this is a huge test for us. The Republican
majority has decided not to do anything about making SUVs and
automobiles more fuel efficient, and that is where 70 percent of all
gasoline, all oil, goes, into those gasoline tanks. Instead of making
those vehicles more efficient, what they have decided to do is to
construct a gasoline station on top of the Arctic Wildlife Refuge in
order to fuel those inefficient vehicles. We must stop them.
Madam Chairman, I reserve the balance of my time.
Mr. POMBO. Madam Chairman, I yield 2 minutes to the gentleman from
Texas (Mr. Gene Green).
Mr. GENE GREEN of Texas. Madam Chairman, I thank the chairman of the
Committee on Resources for yielding me this time.
This is a perennial amendment we have. This energy bill provides for
production, conservation and research, but ANWR is one of the most
important production parts. Granted we cannot produce ourselves out of
these high energy prices, but we have to produce in our own country if
we ever expect to lower the prices.
Our Nation needs more energy. Our economy, consumers and workers bid
against China, Europe and India's economies for every barrel of Middle
Eastern, African and Venezuelan oil. The Congress so far has refused to
open promising offshore areas to exploration, even as Cuba, employing
Spanish and Chinese energy companies, is drilling 60 miles from the
Florida Keys, much closer than we allow American companies to do.
No nation can produce energy more responsibly than ours. Energy
production is not like it used to be 50, 25 or even 10 years ago. It is
much cleaner and much more scrutinized. Supporting only long-term
solutions and conservation is important, but not enough. Our cars get
25 percent of their gas from U.S. lands, but our children will see even
less if we do not produce at home.
Two-thirds of the world's oil reserves are in the Middle East,
controlled by OPEC. If they act as a cartel, they will control the
world price of oil for the foreseeable future. If we allow domestic
production to die out, conservation and research will not save us and
we will have to pay a terrible economic price.
If we allow production in ANWR, we will see great benefits at a very
low, temporary cost and see thousands of good-paying jobs created over
the next 25 years. The caribou, bears, birds and other wildlife can
thrive just as they have at Prudhoe Bay. Tanker accidents will be
prevented by new, double-hulled oil tankers and environmental impacts
overall will be much less.
Drill sites are much smaller today and we use fewer wells with our
new drilling technology. Permanent gravel roads are no longer necessary
if we use the winter ice road. The doom and gloom scenarios by
opponents of ANWR oil are inaccurate and not based on reality. I have
been there many times, Madam Chairman, and I can tell you that we can
produce it and the bears and the caribou will be in ANWR just like they
are in Prudhoe Bay.
Mr. MARKEY. Madam Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California (Ms. Lee).
Ms. LEE. Madam Chairman, first, let me just say, I want to thank the
gentleman from Massachusetts (Mr. Markey) for yielding me the time, for
his leadership and the gentlewoman from Connecticut (Mrs. Johnson) for
her leadership in making sure that this is a bipartisan amendment.
Opening up the Arctic National Wildlife Refuge to oil and gas drilling
is not the answer to our long-term energy or security needs.
The fact is, we are addicted to oil. The proponents of this bill
would have you believe that the only way to cure an addict is to feed
the addiction at whatever cost, regardless of the effect on the
environment, on our wildlife, and on our public health.
As a psychiatric social worker by profession, I can tell you this
does not work. We should be working to reduce our dependency by
promoting energy efficiency and energy conservation, and funding
research to develop and utilize clean and renewable sources of energy.
By allowing drilling in the Arctic refuge, we are spoiling a pristine
natural environment, we are furthering our dependence on oil, and we
are contributing to high levels of asthma, such as in my own district
in west Oakland and throughout the country.
Reducing dependencies on alcohol and on drugs leads to individuals
leading clean and sober lives. Our country needs to reduce its
dependency on oil, for a clean and sober and independent future is what
our children deserve.
Mr. POMBO. Madam Chairman, I yield 2 minutes to the gentleman from
Nevada (Mr. Gibbons).
(Mr. GIBBONS asked and was given permission to revise and extend his
remarks.)
Mr. GIBBONS. Madam Chairman, as I rise to the podium here, I want to
bring up a poster which shows what this Arctic National Wildlife Area
really is. First of all, let me say that the Arctic National Wildlife
Refuge is 19.5 million acres of Alaska, set aside in 1960. Also in
1960, they set aside 1.5 million acres for exploration for oil. That is
called the area 1002 part of ANWR.
This is area 1002. This is the area we are going to be drilling on
for oil and gas. As you can see, no big trees, no big mountains, no big
herds of anything. It is just frozen tundra out there.

{time} 1745

But the 1002 area will continue to provide, as the USGS has already
said, an estimated oil reservoir for this country that will equal the
amount of oil we will get from Saudi Arabia for 30 years, Madam
Chairman; 10.4 billion barrels would make it the largest oil reserve
find in the world since the

[[Page H2336]]

nearby Prudhoe Bay discovery was done 30 years ago.
Madam Chairman, the area 1002 is not a wilderness. It is part of ANWR
set aside 18 years ago for oil and gas exploration. This is where this
2,000-acre surface disturbance is going to take place. We are not
talking about a pristine wilderness area that one would find in any of
the southern 48 contiguous States that have forests.
So with that, Madam Chairman, I just wanted to bring to the Members'
attention that this is not the pristine wilderness that most people
have in mind. This is a frozen tundra that we are going to disturb only
2,000 acres of it, and from there we are going to provide this country
with nearly 10 billion barrels of new oil to meet the needs of this
country's energy demands.
Mr. MARKEY. Madam Chairman, I yield 1 minute to the gentleman from
Minnesota (Mr. Kennedy).
Mr. KENNEDY of Minnesota. Madam Chairman, I rise to support this
amendment.
Since coming to Congress, I have been committed to the need to
maximize our domestic energy resources. However, I firmly believe that
we must pursue domestic energy independence in a manner that protects
our natural resources like the Arctic National Wildlife Refuge. Instead
of opening up ANWR to oil drilling, I believe that we should look to
new sources and new technologies to increase our energy independence.
I am proud to say that my State of Minnesota is a leader in the field
of renewable energy such as ethanol, biodiesel, and wind energy.
Minnesota companies offer innovative technologies to reduce our energy
needs. These renewable energy sources and technologies offer a sensible
alternative to help reduce our reliance on foreign sources of oil
without endangering our environment. That is why I support the Markey-
Johnson amendment and urge my colleagues to do the same.
Mr. POMBO. Madam Chairman, I yield 4 minutes to the gentleman from
Alaska (Mr. Young), chairman of the Committee on Transportation and
Infrastructure.
Mr. YOUNG of Alaska. Madam Chairman, I want to thank the gentleman
from California (Chairman Pombo) and the gentleman from Texas (Chairman
Barton) for their fine work on a good piece of legislation that starts
our process in becoming independent, providing energy policy, which I
have heard none from the other side. Remarkably, when I hear people
talking about new innovative ideas, they do not tell me what ``new''
is.
We are fossil-fuel oriented, and I will admit to that. And we are
also dependent, and we have to admit to that. And we are talking about
an area that is not pristine, an area, in fact, that should be
developed that is 74 miles from the pipeline, an area that we have
developed already in Prudhoe Bay, and we can see the great damage that
is done up there. The caribou are using the pipeline to rub their backs
on. The caribou are calving around the wells. The gentleman from
Massachusetts (Mr. Markey) has never been there; so he would not know.
And we have polar bears now that are using the line for a
transportation corridor.
So, Madam Chairman, those who would support the Markey amendment are
really supporting terrorism because you do not want to develop the
domestic fuel supply in this country, and we can. We should be doing
this right now. And I hear people tell me it will only affect us 10
years from now. If you had done it when I asked you to do it 20 years
ago, we could have solved that problem.
The thing that sort of strikes me the most is I hear people talk
about special interests. In fact, the gentleman from Massachusetts (Mr.
Markey) mentioned it today about special interests, serving up special
interests. But I would like to just read a little short letter that I
happened to pick up off a Web site. It says: ``Dear friend, in a few
short hours the Republican energy bill will be brought up for debate
and a vote on the floor of the House of Representatives. I need your
immediate help to ensure that this terrible bill never becomes law.
``Last week in the Committee on Energy and Commerce, I offered a
series of amendments to increase the average fuel efficiency'' and it
was turned down by the Republicans.
``I then offered an amendment in the Committee on Resources to strip
a provision from the bill that would open the Arctic National Wildlife
Refuge for oil drilling.'' The Republicans again voted against it.
``If we allow drilling in the Arctic National Wildlife Refuge we will
forever ruin this unique wilderness and allow the oil industry to
target all 450 National Wildlife Refuges . . .
``For the last 5 years, I have led the battle in the House to stop
the Republicans in the Congress from selling off one of our greatest
natural resources to the powerful special interests. Help me continue
to fight to expose to the American people the dangers of this extreme
and ineffective action by making a contribution today.''
Just, by the way, dial in to www.edmarkey.org/contribute. That is a
special interest.
``Help me to continue to fight for sensible, clean and independent
energy future and shine a light on the Republican Party backroom
attempts to cater to special interests by making an immediate
contribution. As Justice Louis Brandeis used to say, `Sunshine is the
best disinfectant.' ''
This is a blatant use of an issue to raise money, and you ought to be
ashamed of yourself. To raise money on an issue that has nothing to do
with energy, energy that this country needs. We are no longer the only
buyers on the block in this world with China and India in the field.
And if we do not wake up, we will have a collapse in our economy. We
must develop not only ANWR but other sources of fossil fuels in this
country as well as nuclear and as well as hydro and as well as wind and
all those other forms of energy and quit talking about pipe dreams,
because if we do not, there will not be the jobs for the future
generations and this country cannot lead this world. And to have
someone stand on this floor and offer an amendment that will take out
the only provisional production is against America, against this great
Nation, and, in fact, would do the wrong thing for this Nation.
So I ask Members to vote ``no'' on the Markey amendment. Keep this
good bill intact. Let us produce energy for this Nation. Let us provide
for future generations.
Mr. MARKEY. Madam Chairman, I yield 1 minute to the gentlewoman from
California (Ms. Woolsey).
Ms. WOOLSEY. Madam Chairman, I want to commend my colleagues for
offering this sensible amendment.
We should not even be having this discussion because drilling in ANWR
will not make us energy independent and it will not end our Nation's
reliance on Middle East oil. Drilling in ANWR will do little to reduce
our current dependence on foreign oil because it will take more than 10
years, yes, more than 10 years to process what little oil may be there.
In fact, if we spent half the time promoting legislation that
encourages the use of renewable energy that we have discussing drilling
in ANWR, we would be close to developing a sensible energy policy that
would ensure real energy independence. We would invest in alternative
renewable clean energy, conservation, and efficiency.
That is why I will support this sensible amendment, and I encourage
my colleagues to do the same.
Mr. POMBO. Madam Chairman, I yield 2 minutes to the gentleman from
Texas (Mr. Barton), chairman of the Committee on Energy and Commerce.
(Mr. BARTON of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BARTON of Texas. Madam Chairman, I thank the gentleman from
California for yielding me this time.
First, let me say that I do oppose the Markey amendment, but I want
to say that the letter that was just read is totally legal. He has got
every right if he wants to use something to try to raise money. He did
not send me that letter. Had he sent it to me, I would have had to
reply in the negative that I could not make the contribution. But I
recognize his right to do it in that manner.
I oppose the Markey amendment because I want to pay less for gasoline
in Texas. I would like to tell the Members that my great State is self-
sufficient in energy production and self-sufficient in oil, but it is
not true. We are the largest producer of oil of the 50 States, but we
are also the largest consumer.

[[Page H2337]]

ANWR has the potential to produce up to 2 million barrels a day for
30 years. And depending on one's point of view, that is a lot or a
little. If one wants to say it is a lot, it is more than we import from
Saudi Arabia. If one wants to say it is a little, it is less than we
use in a year in this country. But 2 million barrels a day for 30 years
would lower prices for every American at the pump.
I would point out that in terms of the environment, we have been
producing successfully in Prudhoe Bay for almost 30 years without any
harm to the environment, as the gentleman from Alaska (Chairman Young)
showed in those pictures when he was up here right before me.
My district produces substantial amounts of oil and gas. We are
producing 1.5 billion cubic feet of gas every day. That is one half of
a trillion cubic feet a year. I cannot tell the Members how many
hundreds of thousands of barrels of oil per day, but we are producing
significant amounts of oil. We are producing it through the water table
and supplies of many of the cities that I represent. We are producing
it from underneath downtown Fort Worth, Texas. And we are doing it in a
safe and environmentally effective fashion. We could do that also in
ANWR. I strongly support the gentleman from California's (Chairman
Pombo) amendment that would allow it.
I want to thank our colleagues in the other body for already agreeing
in the reconciliation instructions, and I urge a ``no'' vote on the
Markey amendment.
Mr. MARKEY. Madam Chairman, I yield 1 minute to the gentleman from
Ohio (Mr. Kucinich).
Mr. KUCINICH. Madam Chairman, I have the greatest respect for the
gentleman from Alaska (Mr. Young), and I simply have a difference of
opinion with him on this despite that great respect.
In what has become a congressional ritual, the prospect of drilling
in the Arctic has been repeatedly struck down in recognition of the
fact that American working families do not want it. Still, we have
proponents telling us that drilling is good for jobs.
Some of the Nation's largest unions, I might point out, like the
SEIU, United Auto Workers, United Steelworkers, and United Farm
Workers, are on record opposing drilling in the Arctic Refuge. Why?
Because it is bad labor policy. Oil production is one of the least
labor-intensive industries, supporting fewer than three direct jobs per
$1 million of investment. Energy efficiency supports 27 jobs for the
same investment.
It is also bad economic policy. One dollar spent on petroleum
production creates only $1.51 in economic value. But that same dollar,
when invested in energy efficiency, creates $2.23 in economic value.
Our Nation's energy policy should not include drilling in the Arctic.
Mr. POMBO. Madam Chairman, I yield 1\1/2\ minutes to the gentleman
from California (Mr. Nunes).
Mr. NUNES. Madam Chairman, I had an opportunity to go up to and visit
in Alaska the gentleman from Alaska's (Chairman Young) district. And I
find it really interesting to hear the opposition to this bill because
when I went up there, I envisioned that I would see trees, running
water, big mountains, things that the American people would want to
preserve. However, when I got there, I found nothing but tundra. And it
was just kind of a wasteland of ice and tundra.
And as the American people are paying upwards of $2.50 a gallon for
fuel today and we sit in the white building on Capitol Hill, I wonder
what they are thinking out there.
This should have been opened long ago. We could get 10 percent of our
daily supply from ANWR. But I believe that the radical environmental
groups have been using this as a fund-raising tool for their
organizations because what they say is in ANWR and what we see when we
get there does not exist. And now I think the fund-raising has
continued. Unfortunately, though, it has spread here to the halls of
Congress. And with all the ethics charges that are being brought today
by the Democrats, I find it very interesting that the author of this
amendment sends out a fund-raising letter, and I have the fund-raising
letter right here that, that asks people to contribute today. And I
would like to submit this for the Record, Madam Chairman, because this
is outrageous when people are paying $2.50 a gallon and the Democrats
and the radical environmental groups are using this as a fund-raising
tool.

Dear Friend: In a few short hours, the Republican Energy
Bill will be brought up for debate and a vote on the floor of
the House of Representatives. I need your immediate help to
ensure that this terrible bill never becomes law.
Last week, in the Energy and Commerce Committee, I offered
a series of amendments to increase the average fuel
efficiency of cars, mini-vans and SUVs. Each of these
amendments was voted down by the Republican majority on the
Committee, ensuring that the most technologically advanced
nation in the world will continue to ignore energy
conservation and not diminish its demand for oil. Why is it
that we can send a man to the moon and beyond but cannot make
our cars more efficient? This is auto mechanics, not rocket
science.
I then offered an amendment in the Resources Committee to
strip a provision from the bill that would open the Arctic
National Wildlife Refuge for oil drilling. The Republicans on
that committee voted against my amendment, choosing to set up
a gas station in this pristine National Refuge.
If we allow drilling in the Arctic National Wildlife
Refuge, we will forever ruin this unique wilderness and allow
the oil industry to target all 540 National Wildlife Refuges
for drilling and exploitation--all for a few meager months
worth of oil. Furthermore, drilling in the Refuge is
completely unnecessary. If we were to increase the average
fuel efficiency of cars, mini-vans and SUV's by only three
miles per gallon, we would conserve more oil in ten years
than could ever be produced by drilling in the Arctic
National Wildlife Refuge.
For the last five years I have led the battle in the House
to stop the Republicans in Congress from selling off one of
our greatest natural treasures to the powerful special
interests. Help me continue to fight to expose to the
American people the dangers of this extreme and ineffective
action by making a contribution today.
Today, I will offer these amendments again on the House
floor. This series of votes is a critical moment for our
country's energy future. I need your help now to expose the
travesty of this Republican energy plan and ensure that this
horrendous bill, rife with handouts to the special interests,
is ultimately defeated. If this bill passes, we will create
more pollution, forever spoil one of our most important and
beautiful public lands and be forced to continue placing our
soldiers in harm's way in defense of oil in the Middle East.
Help me continue to fight for a sensible, clean and
independent energy future and shine a light on the Republican
Party's backroom attempts to cater to the special interests
by making an immediate contribution. As Justice Louis
Brandies used to say, ``sunshine is the best disinfectant.''
Thank your for your action,
Ed Markey

Mr. MARKEY. Madam Chairman, I yield 1 minute to the gentleman from
Washington State (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. Madam Chairman, the gentleman from Alaska (Mr. Young)
asked a very important question: Where are the technologies that we can
use to avoid having to destroy the character of one of our most
pristine areas in America?
And the answer is that we have technologies today that we simply
stopped using 20 years ago.

{time} 1600

If you look at this graph, it shows the mileage of our cars that we
have. You see, starting in 1975 it went up dramatically because we had
a bipartisan consensus to demand to use existing technologies to
improve our automobile efficiency. It went up dramatically, almost
doubling, almost doubling by 1985.
And then what happened? We fell off the wagon, and since that time,
our average full economy shown by this middle line has absolutely,
absolutely gone down since 1985.
The fact of the matter is, these are not future techno dreams that
someone has dreamed up in their garage somewhere; they are technologies
that exist today. I drive a car that gets 44 miles to the gallon. I am
6'2", 200 pounds; it is totally safe and comfortable.
We need to get back on the fuel efficiency wagon as we were in the
1980s on a bipartisan basis and not put a mustache on the Mona Lisa.
You say 2,000 acres? It is still a mustache on the Mona Lisa for our
most pristine areas.
Mr. POMBO. Mr. Chairman, I yield 1 minute to the gentleman from Texas
(Mr. Burgess).

[[Page H2338]]

Mr. BURGESS. Mr. Chairman, I thank the gentleman for yielding me this
time.
Mr. Chairman, I rise today in opposition to the Markey amendment.
Of course, energy independence should be the goal of this Congress.
Worldwide demand for petroleum has increased in the last decade. Our
production has been relatively flat.
The inevitable result is higher prices at the gasoline pump. The
reality is, it takes a long time to go from the oil field to the
gasoline station, and we have lost considerable time in this regard.
Ten years ago, 1995, 104th Congress, H.R. 2491 would have allowed oil
exploration in the ANWR. The Department of Energy has estimated, and
the chairman quoted today, between 1 and 2 million barrels of oil a day
could be derived from this source.
Unfortunately, this legislation, passed by the House and the Senate,
was vetoed by President Clinton. That was nearly 10 years ago. Given a
time line of 7 to 14 years for building a pipeline structure, it is
time that we could scarcely afford.
Just like the other gentleman from California, I have been to ANWR.
The vast coastal plain is unsuitable for habitation during the summer
months because of the marshy consistency. Any caribou unlucky enough to
calve in this region would likely die from exsanguination at the hands
of the mosquitoes there.
The people in ANWR are counting on this Congress to do the right
thing and allow them, the rightful owners of these mineral rights, to
begin developing the sources that were granted to them upon statehood
in 1959.
Mr. MARKEY. Mr. Chairman, I yield 1 minute to the gentleman from New
Mexico (Mr. Udall).
Mr. UDALL of New Mexico. Mr. Chairman, I thank the gentleman from
Massachusetts for his leadership on this issue.
I see a far different place than the two gentlemen that have spoken
before us from the opposition. When I went up to the Arctic National
Wildlife Refuge, I saw a tremendously diverse area in terms of
wildlife. I saw musk oxen, grizzly bears, Arctic char, and this
marvelous caribou herd, which is the largest in North America, migrate
to cross the area that we are talking about drilling in. So there is a
far different area than is being described.
One of the things that has not been mentioned here is, two native
tribes depend on the migration of these caribou, and they have asked
the Congress and they have asked the State of Alaska to stand up for
them and to say, We do not want to have the destruction of this
migration, because their livelihood depends on having caribou, and
their entire existence rotates around that.
So I would urge my colleagues to support the Markey amendment and
vote down this dangerous energy bill.
Mr. POMBO. Mr. Chairman, I reserve the balance of my time.
Mr. MARKEY. Mr. Chairman, may I inquire of the Chair how much time is
remaining.
The Acting CHAIRMAN (Mr. Simpson). The gentleman from Massachusetts
(Mr. Markey) has 5\1/2\ minutes remaining; the gentleman from
California (Mr. Pombo) has 2\1/2\ minutes remaining.
Mr. MARKEY. Mr. Chairman, I yield 3\1/2\ minutes to the gentlewoman
from Connecticut (Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Chairman, I thank the gentleman for
yielding me this time, and I rise in strong support of the Markey
amendment.
I consider this one of the most important environmental votes
Congress will cast this year, the vote to protect the Arctic National
Wildlife Refuge from oil and gas drilling.
According to the U.S. Geographical Survey, this area would produce
far less oil than the U.S. consumes in a single year, and is the only
conservation area that protects a complete spectrum of Arctic and sub-
Arctic ecosystems in North America.
The ecosystem will be seriously damaged by drilling in the ANWR, make
no mistake about it. Roads, pipelines, drilling platforms and
communities to support personnel all involve disturbing this critical
natural habitat by moving a great deal of extremely heavy equipment
across fragile lands, by locating multi-ton rigs and whole communities
of people to support the drilling operation on this fragile land base.
Drilling supporters claim that everything can be done in the refuge
using ice roads and platforms. But even if ice roads did not melt in
summer months, the reality is that there is simply not enough water in
the refuge to create the roads and platforms necessary to drill in the
ANWR refuge.
Just building 1 mile of road takes a million gallons of water. There
are only eight lakes scattered across the refuge containing enough
unfrozen water to build a mile or more of ice roads. That means the
only alternative truly is permanent gravel roads crisscrossing the
refuge and, in fact, there is not one oil field in Alaska's North Slope
that does not have permanent gravel roads.
Some drilling supporters cite the central Arctic caribou herd as
illustrating that the caribou and drilling can coexist harmoniously.
But calving females have completely withdrawn from the drilling area
around Prudhoe Bay and are declining around the Kuparak complex. While
there is ample area for the central Arctic herd to move away from the
drilling facilities for calving and still be supported, this is not the
case for the porcupine caribou herd. They are a much larger herd and
the coastal plain where they calve is much smaller. They would be
displaced into the foothills where both they and their calves would be
extremely vulnerable to predators.
Finally, it would take a decade to deliver oil from the ANWR, and the
amount, again, as I said earlier, would be very limited, according to
the U.S. Geological Survey.
On the other hand, the National Petroleum Reserve and other areas are
capable of providing far more oil. In fact, the Federal Government, the
State of Alaska, the Arctic Slope Regional Corporation, and others are
in the process of leasing 50 million undeveloped acres in this region.
We do not need to drill on the ANWR plain. If we were to increase the
fuel efficiency of automobiles by just 3 miles per gallon, we would
save a million barrels of oil a day, five times the amount we would get
out of ANWR. Or, if just California increased their use of currently
available clean diesel technology cars, pickups and SUVs just to the
levels seen in Europe today, just California could save 110 million
gallons of gasoline by the year 2010.
So this vote is not about oil, it is about our values and how we
balance the value we place on a critical environmental resource and its
ecosystems, and the value we place on exploration in a low-yield area.
Indeed, it is about prudent stewardship.
Mr. POMBO. Mr. Chairman, I reserve the balance of my time.
Mr. MARKEY. Mr. Chairman, I yield myself the balance of the time.
The Acting CHAIRMAN. The gentleman from Massachusetts has 2 minutes
remaining.
Mr. MARKEY. Mr. Chairman, this is a huge moment for this Congress.
Inside of the Republican bill that we are voting on is a continuation
of the $35,000 tax break to purchase Hummer IIs, a tax break to buy a
Hummer II, $35,000. And then they turn with policies like that and they
say, We need more gasoline in America. And they turn to an Arctic
wildlife refuge as the first example of where they will go, rather than
saying, Well, you know, if our country could put a man on the moon in
1969, if we could deploy the Internet around the world in the last 15
years, if we could craft a human genome, then maybe we could find a way
to reinvent the automobile and the SUV so that it would average more
than 23 miles per gallon, 1983s average; that is the average we have
today.
It is wrong, it is immoral for this Congress not to have any fuel
efficiency standards for automobiles or SUVs in their bill, to continue
tax breaks, giving incentives for Americans to purchase the most
inefficient vehicles, and to then turn to the wilderness areas and say,
We need the energy.
America is great because its people are great, and what makes us
great is we are technological giants. We have only 3 percent of the oil
reserves in the world, but with our brains, we can make vehicles that
are twice as efficient as the ones that we use today, if

[[Page H2339]]

we put our minds to it. But the Bush administration and the Republican
majority are completely and totally opposed to it. They reject it in
their legislation today. Yet, they say they have a solution for the
energy crisis in America.
Well, you cannot put 70 percent of all of the oil in gasoline tanks,
have no improvement in fuel economy standards, and then say you are
solving the problem by going to wilderness areas and spoiling them.
Vote ``aye'' on the Markey amendment.
Mr. POMBO. Mr. Chairman, I yield myself the balance of the time.
The Acting CHAIRMAN. The gentleman from California has 2\1/2\ minutes
remaining.
Mr. POMBO. Mr. Chairman, this is always a great debate that we have
on the energy bill, and I always enjoy the rhetoric of the gentleman
from Massachusetts (Mr. Markey) and his ability to speak to the issues
that he is so passionate about.
I have been to ANWR. I have been up there in the wintertime when it
was 40 degrees below zero; I have been there when it was the summertime
and it had warmed up to 32. And I agree with the gentleman from
Massachusetts on one point, and that is that it is a very unique place
that deserves to be protected. I believe that it is one of the most
important areas that we have in Alaska, and throughout the country,
because of its uniqueness.
But the argument that the gentleman from Massachusetts (Mr. Markey)
and those who support his amendment continue to make is that we have to
choose between energy production and protecting our environment, and we
do not. It is a false choice. We keep hearing this over and over again.
Currently, there are about 120 wildlife refuges that have some kind
of oil and gas development in them. This is not a wilderness area, as
the gentleman from Massachusetts (Mr. Markey) keeps talking about, it
is a wildlife refuge. And the area that we are talking about doing gas
and oil exploration in was reserved by Congress for that purpose.
We do not have to choose between having a vibrant economy, we do not
have to choose between providing the energy resources for our country
and protecting our environment. We can do both. There is no reason why
we cannot.
They talk about the 700,000 jobs that this will produce, and if it is
that many, that is American jobs. But that is money that is being sent
to foreign countries right now, that will be kept in this country. We
have 3,000 union members that are on Capitol Hill today lobbying
against the Markey amendment, because they know it means jobs to them.
But they also know that it means that they will have to pay less in the
future for gasoline than they would if the Markey amendment passes.
This is an important amendment, because when we talk about energy
independence, a big part of energy independence is developing our
energy resources. It is not about all of these pie-in-the-sky ideas
that we keep hearing about. What this is about is developing our own
resources here at home, providing jobs here at home, and keeping
hundreds of millions of dollars a year here at home. That is the effort
that this committee is making; that is the effort that we put in.
Passing the Markey amendment would be a huge mistake. If we had been
able to do this before, we would be producing that oil now.
Vote against the Markey amendment again.
Mr. UDALL of Colorado. Mr. Chairman, I support this amendment.
I think our colleagues from Connecticut and Massachusetts have very
well explained why the amendment should be adopted.
On that, I don't think there is a need to try to add to what they
said except to say that the amendment will protect one of the most
special places in our country without much real cost in terms of our
ability to maintain needed energy supplies.
But I do want to take just a moment to add a personal note.
As Congress has debated this and similar energy bills, there has been
some discussion of the history of the Alaska Lands Act and how its
authors might vote if they were still Members of Congress.
Some have even suggested that my father, Mo Udall, would oppose this
amendment and support opening the coastal plain to drilling.
That's an interesting thought. Of course, all we really know is that
if things were different, they would be different.
But I have my own opinion on the subject--and I think speculation
along those lines is not based on history.
I think that the prime sponsors of the Alaska Lands Act, including my
father, would support the Markey-Johnson amendment.
Of course, that isn't really the point, anyway--the real issue before
us isn't about the past, but about the future.
And it is up to us--not our predecessors--to decide, not just for
ourselves but for our children and their children.
But if people want to consider some words from the past, I would
direct their attention to the original Committee report on the Alaska
Lands Act, dated April 7, 1978.
On page 149, the report points out that ``the Committee has noted the
eloquent statements of a number of prominent Alaskans'' about the idea
of building a pipeline across the coastal plain.
``For example,'' the report continues, ``Senator Ted Stevens . . .
told the Council on Environmental Quality that `Some have appropriately
compared [that idea] with slicing a razor lade across the face of the
Mona Lisa.''
I think that is a good summary of what could happen if we do not
adopt this amendment.
I am not saying that Senator Stevens would support the amendment--I
am sure he wouldn't.
I am saying that I think he aptly described what will happen if the
coastal plain is opened to drilling.
And that is why I will vote for this amendment, and why I urge its
adoption by the House.
Mr. CROWLEY. Mr. Chairman, this debate comes down to Fact v. Fiction.
Fiction--The other side argues that drilling in pristine areas will
lower gas prices.
Fact--The President's top counselor Dan Bartlett said this week that
there is no magic wand to reduce gas prices.
Fiction--Opening ANWR will relieve the U.S. from turning to foreign
sources.
Fact--This bill makes our country more dependent on fossil fuels from
places like the Mid-East as scientists of all ideologies have stated
that the limited amount of oil will not result in a lessening of oil
dependency for the U.S.
Fiction--Opening ANWR will weaken OPEC and strengthen the U.S.
Fact--The Bush administration's own Department of Energy contradicts
this point, when it determined last year that if world oil markets
continue as they currently do, OPEC could ``countermand any potential
price impact of Arctic Refuge production by reducing its exports by an
equal amount?''
Fact--Drilling in ANWR will not lower gas prices at the pump; will
not protect our national sovereignty, and will not reduce our
dependence on foreign oil.
Fact--Vote for Markey-Johnson.
Mr. SHAYS. Mr. Chairman, I rise in strong support of the Markey-
Johnson Amendment to protect the Alaska National Wildlife Refuge.
The coastal plain of ANWR is the last major part of the North Slope
that has not been developed. In my judgment, it would be far better to
develop prudent and lasting alternate fuel energies than to risk
irreparable damage to the wilderness of one of North America's most
beautiful frontiers.
The reason the ANWR ``solution'' seems so simple is because it's too
good to be true. It won't fix our energy problems--with so little oil
available up there, it couldn't possibly, as it will take a decade to
get the oil down here. That time would be far better spent developing
clean, renewable energy sources that will provide infinite energy
without imperiling our last remaining wilderness areas. Even a modest
increase in CAFE standards would save more oil than would be produced
by drilling in ANWR.
We simply won't have a world to live in if we continue our neglectful
ways. What we really need to ask ourselves is: how can we square
legitimate environmental concerns with our expanding energy needs?
Mr. Chairman, drilling in the Arctic Refuge is the wrong answer to
the right question. I urge my colleagues to vote yes on the Markey-
Johnson Amendment.
The Acting CHAIRMAN. All time has expired.
The question is on the amendment offered by the gentleman from
Massachusetts (Mr. Markey).
The question was taken; and the Acting Chairman announced that the
noes appeared to have it.
Mr. MARKEY. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from
Massachusetts (Mr. Markey) will be postponed.

{time} 1815

The Acting CHAIRMAN (Mr. Simpson). It is now in order to consider

[[Page H2340]]

amendment No. 4 printed in House Report 109-49.

Amendment No. 4 Offered by Mr. Boehlert

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

Amendment No. 4 offered by Mr. Boehlert:
In title VII, at the end of subtitle E, add the following:

SEC. 775. AVERAGE FUEL ECONOMY STANDARDS.

(a) Purpose.--The purpose of this section is to seek to
save each year after 2014 10 percent of the oil that would
otherwise be used for fuel by automobiles in the United
States if average fuel economy standards remained at the same
level as the standards that apply for model year 2007.
(b) In General.--Section 32902 of title 49, United States
Code, is amended by redesignating subsections (i) and (j) in
order as subsections (j) and (k), and by inserting after
subsection (h) the following:
``(i) Standards for Model Years After 2007.--The Secretary
of Transportation shall prescribe by regulation average fuel
economy standards for automobiles manufactured by a
manufacturer in model years after model year 2007, that
shall--
``(1) ensure that the average fuel economy achieved by
automobiles manufactured by a manufacturer in model years
after 2014 is no less than 33 miles per gallon;
``(2) ensure that improvements to fuel economy standards do
not degrade the safety of automobiles manufactured by a
manufacturer; and
``(3) maximize the retention of jobs in the automobile
manufacturing sector of the United States.''.
(c) Conforming Amendments.--Such section is further
amended--
(1) in subsection (c)(1) in the first sentence by inserting
``and subsection (i)'' after ``of this subsection''; and
(2) in subsection (k) (as redesignated by subsection (a))
by striking ``or (g)'' and inserting ``(g), or (i)''.

The Acting CHAIRMAN. The gentleman from New York (Mr. Boehlert) and a
Member opposed each will control 10 minutes.
The Chair recognizes the gentleman from New York (Mr. Boehlert).
Mr. BOEHLERT. Mr. Chairman, I yield 5 minutes to the gentleman from
Massachusetts (Mr. Markey), and I ask unanimous consent that he be able
to control that time.
The Acting CHAIRMAN. Is there objection to the request of the
gentleman from New York?
There was no objection.
The Acting CHAIRMAN. The gentleman from Massachusetts will be
allotted 5 minutes and will control the 5 minutes.
Does the gentleman from Michigan (Mr. Dingell) claim the time in
opposition?
Mr. DINGELL. I am opposed to the amendment.
The Acting CHAIRMAN. The gentleman from Michigan (Mr. Dingell) will
be recognized for 10 minutes.
Mr. DINGELL. Mr. Chairman, I ask unanimous consent to yield 5 minutes
to the gentleman from Michigan (Mr. Upton) and that he be permitted to
yield as he might see appropriate amongst his colleagues.
The Acting CHAIRMAN. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. BOEHLERT. Mr. Chairman, I yield myself 1 minute. Mr. Chairman,
let me make several quick points. First, we cannot become less
dependent on foreign oil unless we increase the fuel economy of our
vehicles.
We are importing 14 million barrels of oil every day. Cars and light
trucks consume 9 million barrels of oil every day, and consumption is
going up not down. We are on a collision course with disaster.
Second, we have been losing ground on fuel economy. We use more gas
to drive a mile today than we did 20 years ago. Third, this amendment
would cut, would cut U.S. consumption by 2 million barrels a day by
2020, more of a savings than any other single source in the bill.
Fourth, the National Academy of Sciences said that full economy can
be increased ``without degradation of safety.'' A representative of the
Alliance of Automobile Manufacturers confirmed at a recent Science
Committee hearing that I chaired that CAFE could be increased without
compromising safety.
Finally, the biggest beneficiary of this amendment will be the
consumers. They are sick and tired of paying skyrocketing prices for
gasoline, $40 to $50 to fill up. They want relief. This amendment
offers them hope that we are doing something about it.
Finally, support this commonsense science-based amendment that will
help the Nation while leaving more money in consumer's pockets, theirs
not ours.
Mr. DINGELL. Mr. Chairman, I yield myself 1 minute.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Mr. Chairman, I know the amendment is offered with the
best of good will. It is nonetheless a bad amendment which is going to
cost this country jobs. I urge my colleagues to oppose it.
The amendment appears to say that it would only require CAFE to be
fixed at 33. In point of fact, it would be required, because of the
language in the amendment, to properly go to 36 miles per gallon. If
you like driving around in small cars, this will assure that that will
be all that you will have.
I will point out who opposes it: AFL-CIO, Farm Bureau, United Auto
Workers, National Automobile Dealers, and hundreds of consumers who buy
comfortable cars which are big enough so that they can take their
family around.
The amendment would purport to have the agency which would fix fuel
economy standards to in fact consider both jobs, safety and other
questions like that. In point of fact, there is no requirement. So
those requirements, in fact, are not requirements but, rather, an
illusion.
I would urge my colleagues to vote against the amendment. It is
opposed by people who want jobs, who are concerned about the economic
welfare and well being of the country, and the auto workers.
Mr. Chairman, I reserve the balance of my time.
Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentleman from
Washington State (Mr. Inslee.)
Mr. INSLEE. Mr. Chairman, I would, just in support of this amendment,
report how successful our country has been previously with this
experience. I want to point to a graph showing our fuel efficiency in
1975, that when we were adopting fuel efficiency standards, rocketed up
and almost doubled to 1985, then stopped when we lost our commitment to
fuel efficiency.
And subsequently it has plateaued; it has actually gone down. The
average fuel efficiency today is less than it was in 1985. I want to
point this out, because it shows an American success story. We were
successful in driving safe, efficient, fuel-efficient cars. And we got
off the fuel-efficiency wagon.
It is time to go back. We cut a deal with Canada the other day. We
can do it in America.
Mr. UPTON. Mr. Chairman, I yield 2 minutes to the gentleman from
Texas (Mr. Barton), the chairman of the powerful Energy and Commerce
Committee.
(Mr. BARTON of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BARTON of Texas. Mr. Chairman, I rise in opposition to this
amendment. You could classify this amendment as the darn-the-people
amendment, and we are going to tell them what they want to do, not what
they really want to do. We are going to tell them that they have to do
something whether they want to or not.
I would list as Exhibit A the parking garage of the Cannon Office
Building or the Rayburn Office Building or the Longworth Office
Building. There are cars and trucks on the market today that meet the
standards that would have to be met if this amendment were to become
law. I doubt that the congressional fleet meets that standard, because
we, like everybody else, want some convenience and want some power
under the hood.
But if you want a car or truck that gets 35 or 36 miles a gallon or
40 miles a gallon or more, you can buy it today. How many of us do
that? I have had one vehicle that my son actually bought; it was a
Nissan Sentra. It probably got 35 miles to the gallon on the highway.
When he got through with it and bought himself a little bit bigger,
more fancy vehicle, he let me drive it, and I brought it up here, used
it as my car for a while. My staff was so embarrassed: it did not have
an air conditioner; it was a standard transmission. I could hardly get
them to get in the car.

[[Page H2341]]

But I did have one vehicle in my life that would have met the
standard that is in this bill. I represent an assembly plant in
Arlington, Texas, a UAW plant. I doubt very many of those folks
actually vote for me because I am a Republican and most of them are
not, but they have a right to make the Chevrolet Tahoes and the
Cadillac Escalades, because a lot of Americans want to drive that
vehicle.
I am not going to go down and tell them, you cannot make that vehicle
because it does not meet these fuel-efficiency standards. Let the
market decide. If America wants more fuel-efficient vehicles, they are
available in the marketplace today.
We do not need a government fiat telling them that that is the only
vehicle that they can purchase. Vote against this amendment.
Mr. BOEHLERT. Mr. Chairman, I yield 30 seconds to the gentleman from
Connecticut (Mr. Shays).
Mr. SHAYS. Mr. Chairman, I rise in strong support of the Markey-
Boehlert, et al amendment. People used to own slaves and we look back
and say how could they? Future generations will say we destroyed the
environment and how could we?
Let us conserve, let us see oil prices go down as we stop wasting
what we have. SUVs, mini-vans, and trucks need to get better mileage;
and we need to tell the automobile manufacturers to make this happen.
Mr. Chairman, I rise in strong support of the support of the
amendment to reduce our consumption of oil by increasing fuel economy
standards for passenger cars and light trucks.
This amendment requires the Department of Transportation to raise
fuel economy standards for automobiles from today's average of 25 miles
per gallon to 33 miles per gallon by 2015.
Under this amendment, the Administrator of the National Highway
Transportation Safety Administration will have maximum flexibility in
how the standards are set. the standard could be increased for cars or
SUVs or only the heaviest trucks.
Mr. Chairman, I agree with those who say, ``We cannot conserve our
way out of this energy problem.'' However, until we raise CAFE
standards, we cannot honestly tell the American people this is a
balanced energy plan.
It is absolutely imperative we are more efficient and make better use
of our precious resources.
This is a common sense amendment, which represents a modest step
forward in our nation's efforts to become more energy efficient. Our
amendment will help protect the environment, reduce our dependence on
foreign oil and save drivers money at the pump.
The United States cannot continue on a course of increased oil
consumption with little to no regard for the implications it has on our
environment, economy and national security. There is no better time to
focus on reducing our reliance on foreign oil than right now. Increased
fuel efficiency standards and tax incentives for conservation and
renewable energy sources should be at the heart of our national energy
policy in a post-September 11 world.
Mr. DINGELL. Mr. Chairman, I yield 1 minute to the distinguished
gentleman from Michigan (Mr. Kildee).
Mr. KILDEE. Mr. Chairman, I rise today to oppose the Boehlert-Markey
amendment to the energy bill. This unnecessary amendment would hurt our
already struggling economy. It threatens the jobs of workers in Flint,
Bay City, Saginaw, and other communities in my congressional district
and in my home State of Michigan.
It undermines the hard work of our auto companies and auto workers
that is being made through the investment of billions of dollars in
alternative fuels and advanced technology vehicles. The drastic
increases called for in this amendment would have negative consequences
for passenger safety and consumer choice.
The National Highway Traffic Safety Administration has increased CAFE
standards, which is their obligation. Clearly, the current process, Mr.
Chairman, is working. Opposing this amendment protects jobs, passenger
safety, consumer choice, and advancing auto technology.
I urge my colleagues to oppose this amendment.
Mr. MARKEY. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman
from New Jersey (Mr. Menendez), the chairman of the Democratic Caucus.
Mr. MENENDEZ. Mr. Chairman, I rise in strong support of the Boehlert-
Markey amendment. Despite the bill's claims to meet our Nation's energy
needs and provide for our Nation's future, H.R. 6 ignores a pivotal
approach that will reduce our foreign dependence on oil and alleviate
our high oil consumption, increasing fuel economy standards.
Let us look at what we know. We know that fuel economy standards have
helped to reduce our dependence on foreign oil. We know that raising
the standard to 33 miles a gallon over the next 10 years, which this
amendment would do, would save 10 percent of the gas we will consume,
and we know that we have the potential in this country to make cars and
light trucks much more efficiently.
Mr. Chairman, we need to unlock that potential. We have the
technology; we have the innovation. Despite all of this, the bill
before us makes no effort to increase those standards. We have a
choice: Do we want an energy future that is stagnant and dependent on
traditional sources, or do we want a future that will break new
boundaries in innovation and technology, reduce our dependency on
foreign oil, increase conservation and efficiency and ensure the
security of our Nation?
Let us prove that we are serious about our Nation's energy future.
Increasing fuel economy standards should be part of the solution and
part of our National energy policy. And I urge my colleagues to vote
for the Boehlert-Markey amendment.
Mr. UPTON. Mr. Chairman, I yield 1 minute to the gentleman from the
great State of Michigan (Mr. Rogers).
Mr. ROGERS of Michigan. Mr. Chairman, you know you cannot make a fat
guy skinny by mandating smaller pant sizes. People have to want to buy
the vehicle that you are trying to sell them. There is a reason that
moms go through the pain and agony of buying an SUV and a mini-van,
because they are safe, because they can get their whole family in
there, because they can put a bike in the back, and they can get all
the groceries in there.
They buy them because they want them and they are safe. The
automobile companies today do not get enough credit for all of the
money they are investing in trying to make these things efficient.
Believe me, if they could get 40 miles to the gallon in an SUV, they
would be on these front steps having a press conference selling these
things. Technology has not matched what consumers want. Let them do
that. You artificially interfere with where we are going, they are
making huge strides. To do this costs Americans jobs. It costs
Americans jobs.
Let them do what they are doing best, and innovate their way to those
high-mileage SUVs and mini-vans so moms do not have to drive Mini
Coopers.
Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from
Illinois (Mr. Kirk).
Mr. KIRK. Mr. Chairman, I believe that this amendment actually saves
American lives. Mr. Chairman, there is no better way to look at this
issue than through the eyes of a young soldier stationed in the Middle
East.
One of the reasons why we pay so much attention to the Persian Gulf
is that the economy of the West is totally dependent on oil from this
region. We must station forces there to make sure that nothing happens
to our supply of energy.
And nothing can change this situation right now. But this amendment
can change this situation for the future. By adopting CAFE standards,
we will make the Persian Gulf much less important. We will reduce the
need to ever deploy young Americans into harm's way. Look into the eyes
of a 10-year-old American and think of him or her, and vote for
policies which will make it much less likely that any President would
ever ask them to return to harm's way in the Persian Gulf.
Mr. DINGELL. Mr. Chairman, I yield 1 minute to the gentlewoman from
Michigan (Ms. Kilpatrick).
(Ms. KILPATRICK of Michigan asked and was given permission to revise
and extend her remarks.)
Ms. KILPATRICK of Michigan. Mr. Chairman, I rise in strong opposition
to this amendment. The National Traffic Safety Administration is the
body who sets those standards. There are standards. They scientifically
set those standards. And sometimes they raise

[[Page H2342]]

them. It is important that we keep that responsibility with NTSA who
does a fine job with that, to set maximum feasible levels for the
standards cars and trucks must use.
I want to read from a good friend here who says, ``Such a proposal
would dramatically affect the functionality and performance of vans,
pickup trucks and sports utility vehicles that consumers in America
want.''
And that is by the United States Chamber of Commerce. One in 10 jobs
are related to the auto industry. Fuel economy standards are set
scientifically, and this body should not get into that.

{time} 1830

We have standards. The American people choose the cars and trucks
they want to drive. I believe that the standards are set fine. And as
we go on, the millions of dollars that the industry has put into new
development, new cars that are energy efficient we will see as time
goes on. Americans are working and we are winning. Leave the standards
to NHTSA.
Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentlewoman from
California (Ms. Eshoo).
Ms. ESHOO. Mr. Chairman, in a cautionary letter to the President last
month, a group of defense experts including conservatives Robert
McFarlane, Frank Gaffney, and Boyden Gray said the following: ``With
only 2 percent of the world's oil reserves but 25 percent of current
world consumption, the United States cannot eliminate its need for
imports through increased domestic production alone.''
Our dependence on foreign oil is putting our country in a perilous
situation. I urge my colleagues to support this amendment because it
will move us away from that perilous addiction to foreign oil and
increase efficiency where we use the most oil, and that is the
automobile industry.
Mr. UPTON. Mr. Chairman, I yield 1 minute to the gentleman from Texas
(Mr. Burgess).
Mr. BURGESS. Mr. Chairman, I stand today in opposition for raising
the CAFE standards. This is an irrelevant piece of legislation that is
not only unnecessary, it is an outdated solution in search of a 21st
century problem.
Changing technology and innovation have rendered this amendment
unnecessary. The increasing use of hybrid vehicles shows that a market-
based approach to increasing fuel efficiency is a better way to reduce
American oil consumption than by placing arbitrary standards on
automobiles that harm our domestic manufacturers. And, in fact, the
only thing we get with CAFE standards down in my district are car
dealers with acres and acres of tiny cars they cannot sell.
With today's high gas prices, hybrid vehicles will help reduce the
amount of money that our constituents pay at the gas pump.
Mr. Chairman, in the interest of full disclosure, I drive a hybrid
vehicle. I did not buy it because of the tax break. I did not buy it
because of any legislation that we passed in this Congress. I bought it
largely because of air quality concerns back in my district. But now I
look positively brilliant that gasoline prices are so high. But the
best thing about a hybrid vehicle, Mr. Chairman, is it allows you that
feeling of moral superiority as you drive your car.
Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from
Pennsylvania (Mr. Platts).
Mr. PLATTS. Mr. Chairman, I rise in support of this bipartisan
amendment. If we want a national energy policy that is truly about
economic security for all Americans, not just those in the auto
industry, that is about national security for all Americans, it needs
to be comprehensive. It needs to be about hybrid vehicles, alternative
fuels, renewable fuels. It needs to be about better using our resources
we have. But it also needs to be about conservation.
This amendment is one of the greatest steps we can take in the area
of going forward in conservation. It is not about whether you should be
able to buy an SUV. It is about whether you should be able to buy an
SUV that gets 27.5 miles per gallon like a car does instead of 20.7. It
is about choice and efficiency.
This amendment is a good amendment. I urge a ``yes'' vote. I commend
the prime sponsors of the amendment for bringing it before the House.
Mr. DINGELL. Mr. Chairman, I yield 1 minute to the gentleman from
Pennsylvania (Mr. Doyle).
(Mr. DOYLE asked and was given permission to revise and extend his
remarks.)
Mr. DOYLE. Mr. Chairman, I would respectfully add my voice to those
opposing this amendment.
While clearly we all want to reduce our imports of foreign oil, I
have not been convinced that raising CAFE standards would actually
accomplish this. As I understand it, our imports' share of oil
consumption was 35 percent in 1974. Since then, our new car fuel
economy has roughly doubled, but our auto import share has risen
nonetheless to about 50 percent. For this reason, I am not convinced
that the amendment, if adopted, with achieve one of its primary goals.
Additionally, our national economy is struggling, to say the least.
In my home State of Pennsylvania, which is not normally thought of as a
State closely tied to the automotive industry, a total of 220,800 jobs
are dependent on the industry; 39,700 of these people are directly
employed by it, and when you add in other spin-off employment, we are
talking about over 220,000 jobs in Pennsylvania alone.
Mr. Chairman, in these difficult economic times, I simply do not
think it is prudent to put those jobs and this vital industry in
jeopardy when it is not clear the benefits potentially derived would
merit doing so.
With the gentleman from Michigan (Mr. Dingell) I urge defeat of the
amendment.
Mr. MARKEY. Mr. Chairman, I yield 30 seconds to the gentleman from
California (Mr. Cardoza).
Mr. CARDOZA. Mr. Chairman, I rise today in support of the amendment
and in opposition to the underlying legislation.
We need to increase our fuel efficiency if the U.S. is ever going to
get serious about our energy crisis. Last year, Mr. Chairman, I voted
for this energy bill because I thought we needed a national plan, but
that was when oil was selling at $30 a barrel.
This year, when oil is averaging $55 a barrel and gas prices are
nearly $3 a gallon in some places, it is bad public policy to add to
the national debt, borrowing the money to give to companies who are
making record profits. The American people deserve better.
I ask for an ``aye'' vote.
The Acting CHAIRMAN. The gentleman from Michigan (Mr. Upton) has 1
minute remaining.
Mr. UPTON. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, I have a trivia question for you. What automaker has
the most vehicles that get a highway fuel economy of 30 miles per
gallon or greater? I will give you a hint. They make 19 of the
vehicles, and that is more than any other automaker.
Do you know who it is? General Motors.
What frustrates me about this debate is the misconception that CAFE
standards are some Holy Grail that foreign manufacturers can get to,
but domestic ones cannot. We do not need to micromanage our auto
manufacturers. They are doing just fine. CAFE standards are being met
and they are being exceeded virtually every single day.
But the more important work is finding real alternatives to gasoline-
powered cars and developing them, for every dollar we force the auto
companies to spend on the CAFE standards is a dollar they will not
spend on hybrids, hydrogen fuel cell and other alternative fuel cell
vehicles.
I am sick of hearing the same old debate. I want to get us to the
point where we talk about which one of the new alternatives we are most
excited about.
I urge you to defeat this used amendment and vote for a new car.
Please defeat this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. BOEHLERT. Mr. Chairman, I reserve the balance of my time.
Mr. DINGELL. Mr. Chairman, I believe that I am entitled to close the
debate?
The Acting CHAIRMAN. The gentleman from Michigan (Mr. Dingell) is
entitled to close and the gentleman has 1 minute remaining.
Mr. DINGELL. Mr. Chairman, I reserve the balance of my time.
The Acting CHAIRMAN. The gentleman from Massachusetts (Mr. Markey)
has 2 minutes remaining.

[[Page H2343]]

Mr. MARKEY. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, this is the key issue if we are going to get serious
about the imports of oil into our country.
We put 70 percent of all oil that we consume in America into gasoline
tanks. In 1975, we averaged 13 miles per gallon; we averaged 13 miles
per gallon in 1935. But Congress, because of the energy crisis, passed
a law mandating a doubling of the standards in 10 years, and the auto
industry responded; and by 1986, the average was 27 miles per gallon,
and we had OPEC on its back. The price of oil fell to $12 a barrel. We,
using our technological genius, had won.
Now, it is almost 20 years later and America is now averaging 23
miles per gallon. We have gone backwards 4 miles per gallon and played
into OPEC's hands as the price of oil goes up to $50 to $55 to $58 a
barrel, as consumers are tipped upside down every time they go into a
gas station in order to pay to fill up their car.
The only answer is to call upon our country's greatness to improve
the fuel economy standards to 33 miles per gallon by 2015. In other
words, to add only 6 additional miles per gallon over what was
accomplished in 1986.
The opponents of this amendment say that is impossible. Well, we put
a man on the moon in 9 years. We improved the fuel economy standards in
10 years by 13 miles per gallon in the 1970s and 1980s, but now we are
being told that we do not have any longer the ability to do that.
Well, we are 60 percent dependent upon imported oil. We are heading
towards 65 percent, towards 70 percent. That is increased national
security problems for our country that we will look back at and regret
that we missed this opportunity to make our country more secure.
Mr. Chairman, I yield back the balance of my time.
Mr. BOEHLERT. Mr. Chairman, how much time do I have remaining?
The Acting CHAIRMAN. The gentleman from New York (Mr. Boehlert) has
1\1/2\ minutes remaining.
Mr. BOEHLERT. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, this is myth versus reality. Myth number one: This will
cost us jobs, passing this amendment. ``Jobs'' is my favorite four-
letter word. This is a bunch of nonsense. The reality is, the new
standards, if they are enacted into law, Americans will buy more, not
fewer, vehicles because they will be more fuel efficient.
Myth number two: CAFE standards will force Americans into smaller
vehicles. The reality is, we heard that argument first back in 1975.
The opponents said, If you adopt this new standard, all Americans will
be driving compacts or subcompacts in 10 years. What has happened? The
record is bigger and bigger vehicles all over the place.
The fact of the matter is, we do not want to take away choice from
consumers. We want them to have their SUVs if that is what they want.
We want them to have their light trucks if that is what they want. We
want Detroit and the American auto industry to make more fuel-efficient
vehicles.
Finally, this really offends me, myth number three: We will sacrifice
safety. That is what the opponents say; that is not what the National
Academy of Sciences says. We already have the technology on the shelf
gathering dust to manufacture more fuel-efficient automobiles and light
trucks. I say the alarm has been sounded. This is a national security
issue.
We are far too dependent on foreign-source oil. This amendment alone
will save 2 million barrels a day by 2020 and, in the process, save the
American consumers that are fed up with a car requiring $40 or $50 to
fill up. They want more fuel efficiency, and we owe it to them and to
ourselves to deliver it.
The Acting CHAIRMAN. The gentleman from Michigan (Mr. Dingell) has 1
minute remaining.
Mr. DINGELL. Mr. Chairman, I yield the balance of my time to the
distinguished gentleman from Michigan (Mr. Stupak) to close the debate.
Mr. STUPAK. Mr. Chairman, I rise in opposition to the amendment.
Encouraging and supporting the development of innovative new technology
is preferable to arbitrary increases in CAFE standards that will truly
hurt thousands of American workers. Moreover, the National Academy of
Sciences report of 2001 indicated that only the subcompact car segment
of our fleet could be expected to achieve this fuel economy level.
This suggests that a substantial portion of the vehicles on the road
would have to be very small to reach this objective. Reducing our
consumption of oil should come from new technology, not by mandating a
standard that requires most vehicles to be a subcompact.
The National Academy of Sciences also raises concerns about potential
increases in highway fatalities if the auto industry is forced into
selling a greater share of small vehicles. According to the analysis of
the Insurance Institute of Highway Safety Data in 1999, since CAFE
standards were first announced in 1975, approximately 46,000 people
died in crashes who would have survived if CAFE had not encouraged
smaller, lighter cars.
I am concerned that this amendment would lead to more unnecessary
fatalities. For these reasons, I urge a ``no'' vote on this amendment.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from New York (Mr. Boehlert).
The question was taken; and the Acting Chairman announced that the
noes appeared to have it.
Mr. BOEHLERT. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from New York
(Mr. Boehlert) will be postponed.
The Acting CHAIRMAN. It is now in order to consider amendment No. 5
printed in House Report 109-49.

Amendment No. 5 Offered by Mrs. Johnson of Connecticut

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

Amendment No. 5 offered by Mrs. Johnson of Connecticut:
In title VII, subtitle E, add at the end the following new
section:

SEC. 775. UPDATE TESTING PROCEDURES.

The Administrator of the Environmental Protection Agency
shall update or revise test procedures, Subpart B--Fuel
Economy Regulations for 1978 and Later Model Year
Automobiles-Test Procedures 600.209-85 and 600.209-95, of the
Code of Federal Regulations, CFR Part 600 (1995) Fuel Economy
Regulations for 1977 and Later Model Year Automobiles to take
into consideration higher speed limits, faster acceleration
rates, variations in temperature, use of air conditioning,
shorter city test cycle lengths, current reference fuels, and
the use of other fuel depleting features.

The Acting CHAIRMAN. Pursuant to House Resolution 219, the
gentlewoman from Connecticut (Mrs. Johnson) and a Member opposed each
will control 5 minutes.
The Chair recognizes the gentlewoman from Connecticut (Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Chairman, I ask unanimous consent to
yield to the gentleman from New Jersey (Mr. Holt) 2\1/2\ minutes for
purposes of control.
The Acting CHAIRMAN. Is there objection to the request of the
gentlewoman from Connecticut?
There was no objection.
Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield myself such time
as I may consume.
Mr. Chairman, I rise today in strong support of the Johnson-Holt
amendment. It is a simple amendment. It is simply truth in advertising,
EPA truth in advertising.

{time} 1845

For the past 3 decades, American motorists have been buying cars,
relying on miles-per-gallon stickers that grossly overestimate the
miles per gallon a car can get. For some vehicles, the advertised miles
per gallon is off by as much as 30 percent.
With gas at $2 a gallon and some cars costing more than my husband
and I paid for our first home, such false information is simply
intolerable, and it is intolerable that our tax dollars are paying for
the EPA to develop false and misleading information.
The auto makers are not at fault; neither are the oil companies. It
is our own government. That is the culprit, and we cannot tolerate EPA
providing wildly inaccurate miles-per-gallon information in the future.

[[Page H2344]]

The way to change this is simple. We simply have to modernize the
testing procedures that EPA uses. The EPA uses 30-year-old testing
standards. The EPA assumes that highway drivers never exceed 50 miles
an hour; but of course, they do, and the faster they drive, the more
wind resistance they get and the lower fuel economy they achieve.
The EPA also assumes that the rate at which drivers brake and
accelerate has not changed over 30 years. Even though the cars have
changed dramatically and so have the driving habits. They do not notice
that driving in cities is entirely different with its stop-and-go
traffic and traffic jams than it used to be 30 years ago.
So our amendment is really simple, straightforward, and common sense.
It mandates that EPA update the tests used in determining estimated
fuel-economy ratings to reflect real-world driving habits of American
motorists.
This is an important little amendment. It is a pocketbook issue. New
cars are expensive. Gasoline is expensive. People can buy whatever car
they want, that is their right; but they should have accurate
information on which to base their choice, and their tax dollars should
not be spent for false and misleading information.
So I urge the support of my amendment.
Mr. Chairman, I reserve the balance of my time.
The Acting CHAIRMAN (Mr. Simpson). The gentlewoman from Connecticut's
(Mrs. Johnson) 2\1/2\ minutes has expired.
Mr. BARTON of Texas. Mr. Chairman, I rise in mild opposition to the
Johnson amendment.
The Acting CHAIRMAN. The gentleman from Texas (Mr. Barton) is
recognized for 5 minutes.
Mr. BARTON of Texas. Mr. Chairman, I yield myself such time as I may
consume.
(Mr. BARTON of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BARTON of Texas. Mr. Chairman, I said mild opposition because it
is exactly what it is. I chair the committee of jurisdiction that would
have this amendment, and we have been working with the Congresswoman
from Connecticut to try to perfect her amendment. She has been very
gracious to come up to me on the floor, and then her staff and
committee staff have been working, and we really thought that earlier
in the week or late last week we had an amendment that everybody could
agree to. For various reasons, that was not agreed to, so we have the
situation today.
At the close of this debate, the gentleman from Michigan (Mr.
Rogers), a member of the committee of jurisdiction, is going to offer a
perfecting amendment to the Johnson amendment. I am going to support
that at the appropriate time.
We support the goal of the Johnson amendment. She is trying to get
consumers fair and accurate information when they go into a showroom or
are thinking about purchasing a new vehicle. She states, and I agree,
that the consumer has a right to know what the fuel economy is of that
particular vehicle; and under current law, the way the tests are
conducted, there is some discrepancy, as she has pointed out in her
statement in support of her amendment.
Having said that, there are those that have reviewed her amendment
and think that it could be a backdoor approach to CAFE standard
increases. We just had the debate on the Boehlert-Markey amendment. I
voted in the negative on that, and I think when that rollcall is
called, the majority of the House is going to be in the negative. So I
know that is not the intent of the gentlewoman's amendment, but there
are some that think it could be.
We are going to oppose this amendment and support the gentleman from
Michigan's (Mr. Rogers) amendment in the nature of a substitute or
amendment to the Johnson amendment. I think at the end of the day, the
House is going to work its will, and the gentlewoman from Connecticut
(Mrs. Johnson) is going to be happy and the gentleman from Michigan
(Mr. Rogers) is going to be happy and the consumers of America are
going to be happy when they go into showrooms a year or two from now
and see these new window labels that show what the fuel economy is.
Mr. Chairman, I reserve the balance of my time.
Mr. HOLT. Mr. Chairman, I yield 45 seconds to the gentlewoman from
California (Ms. Woolsey).
Ms. WOOLSEY. Mr. Chairman, I wonder how many Americans have bought a
car and wondered why their gas mileage was not what had been
advertised. Well, it is because the fuel economy numbers advertised by
automobile manufacturers are based on 30-year-old fuel economy tests,
tests that have not been adjusted for today's realities, and that leads
Americans to be regularly misled by inaccurate labels.
The automobile industry has changed significantly over the last 3
decades, but the EPA standards are stuck in the past, overestimating
fuel economy data.
I support this amendment. It will require the EPA to update its
testing standards so that consumers will have accurate fuel economy
information in the future.

parliamentary inquiry

Mr. BARTON of Texas. Mr. Chairman, parliamentary inquiry, since the
Rogers amendment, which is next in line, amends, or perfects, the
Johnson amendment, does the gentleman from Michigan (Mr. Rogers) have
to seek recognition to offer his amendment before the close of debate
on the gentlewoman from Connecticut's (Mrs. Johnson) amendment, or does
he wait until her debate concludes and then offers his amendment?
The Acting CHAIRMAN. The gentleman may offer his amendment to the
amendment at any time during debate on the Johnson amendment.
Mr. BARTON of Texas. At any time.
The Acting CHAIRMAN. The gentleman from Texas (Mr. Barton) is
recognized.
Mr. BARTON of Texas. Mr. Chairman, I reserve my time.
Mr. HOLT. Mr. Chairman, I yield 45 seconds to the other gentlewoman
from California (Mrs. Davis).
(Mrs. DAVIS of California asked and was given permission to revise
and extend her remarks.)
Mrs. DAVIS of California. Mr. Chairman, I support this bill so that
we can, and the public can, rely on the energy-conscious information
that they are getting and that they know that is correct and accurate,
and they can move forward with that.
Mr. Chairman, Members, are your constituents also asking you what you
are doing about high gas prices? We must answer that question in this
bill.
Individuals can do something about their gasoline consumption when
they select a car to buy. We need to help them.
People expect that, when they look at the window sticker, the miles
per gallon figures that the EPA supplies are what they will get when
they purchase the car.
They are not.
When one of my staff members complained to the car dealer that the
gas mileage figures were way off for City Driving for the car she had
selected for its fuel efficiency, the dealer said, ``Oh, that doesn't
apply to driving in DC.''
I support this amendment because it would require the EPA to correct
the long-standing inaccuracies in its testing procedures.
Our constituents must be able to rely on these facts to be the
energy-conscious consumers they want to be.

Amendment No. 6 offered by Mr. Rogers of Michigan to Amendment No. 5
Offered by Mrs. Johnson of Connecticut

Mr. ROGERS of Michigan. Mr. Chairman, I offer an amendment to the
amendment.
The Acting CHAIRMAN. The Clerk will designate the amendment to the
amendment.
The text of the amendment to the amendment is as follows:

Amendment No. 6 offered by Mr. Rogers of Michigan to
amendment No. 5 offered by Mrs. Johnson of Connecticut:
In the matter proposed to be inserted by the amendment,
strike ``test procedures'' and all that follows through
``Later Model Year Automobiles-Test Procedures'' and insert
``the adjustment factors in sections''.

The Acting CHAIRMAN. Pursuant to House Resolution 219, the gentleman
from Michigan (Mr. Rogers) and the gentlewoman from Connecticut (Mrs.
Johnson) each will control 5 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Rogers).
Mr. ROGERS of Michigan. Mr. Chairman, I yield 2 minutes to the
distinguished gentlewoman from Michigan (Ms. Kilpatrick).
(Ms. KILPATRICK of Michigan asked and was given permission to revise
and extend her remarks.)

[[Page H2345]]

Ms. KILPATRICK of Michigan. Mr. Chairman, I thank the gentleman for
yielding me time.
We rise to make this a better amendment. If we want EPA to do the
testing, to make sure that things are right and labeling is correct,
then we want to make sure that there is one test to do that. What we do
not want to do is put additional funds, additional costs, additional
measures on the auto industry that is already very fragile.
So we rise in opposition to the Johnson amendment and ask that our
amendment be considered because the testing is there. We do not need to
have two tests, as is required by the Johnson amendment. It doubles the
cost for product, and it allows the competition to be more advanced in
our competition war than we are now considering.
The auto industry in America is fragile. We all know that they have
invested millions of dollars in their products to make them better,
make them fuel efficient, do alternative energy sources.
We believe that our amendment is a perfecting one; and, yes, it
requires that the EPA do the proper tests, not two times but the one
time that is required and that the labeling be accurate.
We hope that our colleagues will support this Rogers-Kilpatrick
amendment. It is a much better amendment, and again works with EPA to
make sure that the labeling is correct with the one test.
Consumers deserve to know that the sticker in their window actually
reflects the mileage they will get on the road.
The EPA should revisit their fuel economy standards and the Rogers/
Kilpatrick amendment would require the EPA to change the adjustment
factors that it currently uses to make the fuel economy label accurate.
Nancy Johnson's amendment requires the EPA to change the ``testing
procedures'' that auto companies use to determine the fuel economy
numbers that go on the dealer label.
Her amendment would require two test auto companies to do one test
for labeling and a separate test for CAFE.
Johnson's language doubles the cost to the companies.
The Rogers/Kilpatrick amendment deals with the need for improved
dealer label accuracy while only requiring one test.
Instead of requiring EPA to change the ``testing procedures'' the
Rogers/Kilpatrick amendment requires the EPA to change the ``adjustment
factors'' that EPA currently uses to make the fuel economy label
accurate.
This simple change prevents the auto companies from having to run two
separate tests.
Rather the auto companies can run one test that could be used and
adjusted with appropriate factors to provide a more accurate fuel
economy number.
The Rogers/Kilpatrick perfecting amendment to the Johnson amendment
achieves precisely the same goal that the Johnson amendment strives to
achieve: accurate fuel economy labels on new cars.
The only difference is that the Rogers/Kilpatrick amendment achieves
this goal by having EPA revise the current test, instead of compelling
EPA to conduct two separate tests.
The Rogers/Kilpatrick perfecting amendment makes clear that the
objective is to change the fuel economy label values--NOT the test
procedures. This will ensure that this measure will improve consumer
information regarding mileage without imposing an increase in the
stringency of CAFE or creating a second fuel economy test for consumer
labeling.
The Johnson amendment COULD threaten to increase the stringency of
CAFE.
The Johnson amendment would require EPA to change fuel economy
testing for label purposes.
If the intent of this change is to create a new test for fuel economy
labeling then the burden on automakers to test vehicles for both CAFE
and fuel economy labeling would increase substantially.
If, however, the intention is to retain only one vehicle fuel economy
test, then the test protocol currently used for determining CAFE values
will also be affected--lowering the fleet fuel economy averages of
manufacturers and making compliance with the CAFE standards more
stringent.
Depending upon the test procedure changes implemented, the stringency
of the CAFE standards could increase by 10-20% (or up to a 6 mpg
increase in the stringency of the CAFE requirements).
The Acting CHAIRMAN. The gentlewoman from Connecticut controls the
time in opposition to the amendment.
Mrs. JOHNSON of Connecticut. Mr. Chairman, I reserve the balance of
my time on the Rogers amendment so that we can move on to the gentleman
from New Jersey's (Mr. Holt) comments on our amendment.
The Acting CHAIRMAN. We are currently on the Rogers amendment.
Mr. HOLT. That is fine, if the gentlewoman would yield.
Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield 2 minutes to the
gentleman from New Jersey (Mr. Holt) on the Rogers amendment.
Mr. HOLT. Mr. Chairman, it is my understanding that I also have 1
minute remaining on the underlying amendment.
The Acting CHAIRMAN. The gentleman from New Jersey (Mr. Holt) has
1\1/2\ minutes remaining.
Mr. HOLT. Mr. Chairman, I thank the gentlewoman for the time.
When you go to the showroom to pick out a new car, the sticker in the
window has a number for city mileage, highway mileage. You would like
to think that that bore some relationship to reality. Now, on the
television ads, they say your actual mileage may vary, when, in fact,
your actual mileage probably bears no relationship whatsoever to those
numbers in the window because EPA has specified that the auto
manufacturers use an archaic testing method.
The amendment that the gentlewoman from Connecticut and I have
offered would correct that testing method. That is the way to take care
of this problem. It is not the right thing to do to use a multiplier
factor, a scale factor, to grade on a curve or to use a fudge factor.
That is what the gentleman from Michigan (Mr. Rogers) is proposing to
do, rather than getting at the heart of the problem, which is that the
tests are not done in a realistic way.
The tests do not reflect the way people actually drive. The tests
suggest that highway speeds are 48 miles per hour with a top speed of
60. Has anybody been on the road recently? That is not the way people
drive.
The tests suggest that congestion and stop-and-go traffic is a minor
part of driving. By 2001, congestion took about 26 hours per year out
of a person's driving time. That is not realistically reflected in the
testing method.
The testing method assumes gentle acceleration and braking. That is
not the way city driving is done.
The tests suggest or require that there be no air conditioning, and
it overestimates trips.
In other words, the tests are wrong. The tests should be modified to
reflect the way people actually drive. Using a fudge factor, a
multiplier will hide the actual differences between cars, and it will
obscure what this is about, which is giving consumers accurate
information.
It is certainly the case that for a government-mandated test we
should get it right. That is all we are suggesting, and this amendment
that the gentleman from Michigan (Mr. Rogers) has may technically,
under parliamentary terms, be called a perfecting amendment. In fact,
it completely changes the nature of what we are trying to do, which is
to give consumers accurate information.
The Acting CHAIRMAN. The Chair would clarify for the Members, on the
underlying amendment, the gentlewoman from Connecticut (Mrs. Johnson)
has 2\1/2\ minutes remaining. The gentleman from Michigan (Mr. Rogers)
has 3\1/2\ minutes remaining.
On the amendment by the gentlewoman from Connecticut, the gentleman
from Texas (Mr. Barton) has 2\1/2\ minutes remaining. The gentleman
from New Jersey (Mr. Holt) has 1\1/2\ minutes remaining. The
gentlewoman from Connecticut's (Mrs. Johnson) time has expired.

Parliamentary Inquiries

Mr. BARTON of Texas. Mr. Chairman, could I ask a parliamentary
inquiry. Before we go to the gentleman from Michigan, when it comes
time to vote, are we going to vote on the Rogers amendment to the
Johnson amendment, and then if it is amended, we will vote on the
Johnson amendment; is that correct? There will be two votes, Rogers to
amend Johnson and then Johnson, either amended or unamended, depending
on how the Rogers amendment fairs?
The Acting CHAIRMAN. If a recorded vote is requested on the Rogers
second degree amendment, the Chair would postpone the request and would
not put the question on the Johnson amendment until after disposition
of the vote on the amendment of the gentleman from Michigan.

[[Page H2346]]

Mr. BARTON of Texas. But we are going to have two votes?
The Acting CHAIRMAN. All time for debate will be consumed now.
Mr. BARTON of Texas. Thank you, Mr. Chairman.
The Acting CHAIRMAN. The gentleman from Michigan (Mr. Mike Rogers) is
recognized.
Mr. ROGERS of Michigan. Mr. Chairman, parliamentary inquiry, how do
we get to the chairman's 2\1/2\ minutes remaining on the primary
amendment?
The Acting CHAIRMAN. The gentleman from Texas (Mr. Barton) may use
his 2\1/2\ minutes now if he wishes.

{time} 1900

Mr. BARTON of Texas. Mr. Chairman, I yield the balance of my time to
the gentleman from Michigan (Mr. Upton), the distinguished chairman of
the Subcommittee on Telecommunications and the Internet of the
Committee on Energy and Commerce.
Mr. UPTON. Mr. Chairman, I thank my distinguished chairman for
yielding me this time, and I rise in strong support of the Rogers
amendment to the Johnson underlying amendment.
Currently, there is one test conducted on vehicles to determine the
fuel economy rating. The Johnson amendment would require EPA to change
that fuel economy testing for label purposes. What this will result in
is having automakers being forced to do two or three or four, or maybe
even more, separate tests. That costs money, more money, and is
unnecessary and more burdensome.
Additionally, as written, the Johnson amendment could also affect how
CAFE is calculated. The Johnson amendment could lower the fleet fuel
economy averages of manufacturers that make compliance with the CAFE
standards much more difficult. Instead of running the substantial risk
under the Johnson amendment, the Rogers/ Kilpatrick bipartisan
perfecting amendment makes a technical change to clarify that
automakers do not have to run multiple duplicative tests to update fuel
economy labeling and ensures that the CAFE program is not manipulated.
Let us take this into a normal example. This morning, many of us, we
live in different States, but we come and commute here to Washington. I
live in Virginia; it is 7 miles from the Capitol here to my house. It
took me more than 30 minutes to get in today. If I had to drive 7 miles
in my town of St. Joseph, Michigan, it would take me about 12 minutes.
We know that when we buy a car.
I had a staff member that bought a great new Ford hybrid vehicle the
other day. He gets accelerated CAFE, or he gets much better gas mileage
with that car when he is in the big city driving. When he goes to
Chicago, to see the Cubs or the White Sox, or whoever, he gets a lot
better mileage because he is stopping and starting all the time. In
Kalamazoo, which is a city of 100,000, where he lives, he does not get
quite the same mileage because it is a different scenario.
You cannot have 20 or 30, who knows how many tests. Maybe it is like
boutique fuels. You have all these different areas, people with
different driving habits, and you cannot expect that the EPA is going
to put a laundry list of these different tests on the window. We know
that when we buy our vehicles. We know about what it is going to be
based on, our history of purchasing cars. And, frankly, a duplicative
test with these multiple numbers will only be more confusing rather
than less confusing to the consumer.
That is why I strongly urge my colleagues on both sides of the aisle,
as we have with this bipartisan amendment, to support the Rogers
amendment to the Johnson amendment so we can make more sense for every
consumer as they purchase a new American car.
Mr. ROGERS of Michigan. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I want to thank the sponsors of the amendment and their
intent and where they wanted to go. The gentlewoman from Connecticut
(Mrs. Johnson) has done a great job of focusing on a problem that is a
problem. We all want accurate numbers on those stickers and times have
changed. The gentleman from Michigan and the gentlewoman from Michigan,
I think, have outlined exceptionally well why this perfecting amendment
makes the intent of what our colleague wants to do exactly that. It
clarifies it to the point that we do not get into CAFE, we get accurate
numbers, and we do not foist a whole set of new costs onto automakers
who are today struggling to keep people employed.
We want accurate numbers as well. But I will tell you, families
across this country are suffering in the automobile industry. They are
suffering. They have layoffs, they have job cuts, there is a lack of
hope in some areas and anxiety you cannot believe in others. So let us
err on the side of those families. Let us stand up today and say, yes,
we should have accurate numbers on these stickers, the very true intent
of what the gentlewoman from Connecticut (Mrs. Johnson) and the
gentleman from New Jersey (Mr. Holt) are trying to do and trying to
accomplish.
Let us do that, but we can do that without new costs, without new
burdens, without even getting close to this argument that they are
going to get into in the CAFE debate, and accomplish exactly what they
want.
I think my colleagues can be proud of this amendment, as amended,
back in their districts and tell people that they fought valiantly to
get the 2005 standards on stickers for cars they are going to buy
today. It is the right thing to do.
So I would urge my colleague to look deep down and say, do I want to
take the chance that I will put out one more American family out of
work? Because I think you will. I passionately believe you will, the
way your amendment is constructed. It will foist new, unnecessary costs
on automakers.
Let us do it the way we know can accomplish what you want and have
families at the end of the day saying, I am going to show up and build
the finest cars in the world right here, in the great State of
Michigan, or any other of the 49 great States of this great country.
Mr. Chairman, I reserve the balance of my time.
Mrs. JOHNSON of Connecticut. Mr. Chairman, I rise in opposition to
this amendment.
Now, let me get to the heart of this matter, because if I thought
this was going to cost people jobs, I certainly would not bring it up.
This question specifically was litigated in 1985 in the D.C. Circuit
Court, Center for Auto Safety v. Thomas, and the court clearly
determined that the CAFE calculation cannot be changed unless Congress
changes U.S. Code 49, section 32904(c). My amendment does not change
that section. My amendment only changes section 32908, which has to do
with the data that underlies vehicle stickers.
Now, the EPA has changed its testing procedures at least twice since
1975. It did not add a lot of cost. It was not a big problem. It is an
EPA center that does this testing. And every time they changed their
testing procedures for the sticker purpose, they did not change it for
the CAFE standard purpose, because to do that, you have to change
section 32904, and my amendment does not change section 32904.
So I am sorry we have not been able to communicate well enough about
this, because I certainly do not want to cost manufacturing jobs. I am
a big advocate of manufacturing. But I do want consumers to have honest
information. And the adjustment in information that the Rogers
amendment to my amendment brings is an amendment that will bring down
the miles per gallon for those that are high achievers and bring it up
for those who are actually low achievers. So it actually makes the
problem worse rather than better.
So I urge the body to oppose the Rogers amendment and support the
Johnson amendment, because the Rogers amendment has the effect of
gutting my amendment, whereas my amendment does not address the CAFE
standards section of the law, which is section 32904(c) and only
addresses the vehicle sticker section of the law, 32908.
Mr. Chairman, I reserve the balance of my time.
Mr. HOLT. Mr. Chairman, will the gentlewoman yield?
Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield the balance of my
time to the gentleman from New Jersey (Mr. Holt).
Mr. HOLT. Mr. Chairman, on the second order amendment, how much time
does the gentlewoman from Connecticut have remaining?
The Acting CHAIRMAN (Mr. Simpson). The gentleman from New Jersey

[[Page H2347]]

(Mr. Holt) has 1\1/2\ minutes remaining on the original bill and the
gentlewoman from Connecticut (Mrs. Johnson) has \1/2\ minute remaining
on the perfecting amendment.
Mrs. JOHNSON of Connecticut. Mr. Chairman, I yield the balance of my
time to the gentleman from New Jersey (Mr. Holt).
The Acting CHAIRMAN. The gentleman may use his 1\1/2\ minutes also.
Mr. HOLT. Mr. Chairman, I yield myself 2 minutes, and I thank my
colleague for yielding her time to me.
Mr. Chairman, to begin to address the second order amendment, which,
as I say, may be technically and in parliamentary terms called a
perfecting amendment, but in fact it would gut the amendment, it does
not get at the heart of the problem, which is that the tests are wrong.
The tests are unrealistic. The tests give results that bear no
relationship to reality.
Why should taxpayers pay for a test, a government-mandated test, or
auto purchasers pay for a test that gives inaccurate information? We
need to fix the EPA test. It can be fixed without giving the folks in
the State of Michigan or other automobile manufacturing areas
heartburn. It does not change the fleet average calculation. It only
addresses the issue of consumer information, so that the purchaser will
have accurate information.
If you use this scale factor, or fudge factor, it will paper over the
underlying problem. It will distort the fuel efficiency difference
between different types of vehicles. In fact, my colleague earlier
talked about how some hybrid vehicles behave differently under
different situations.
The tests themselves need to be changed, not an after-the-fact fudge
factor, so that when you go into the showroom to purchase a car and you
see the number in the window for city mileage and highway mileage, you
will have a reasonable expectation that that car, when used on actual
American streets and actual American highways, will give mileage
comparable to what is posted there.
The ad says your actual mileage may vary. The way it is today, with
the tests that we have, your actual mileage may bear no relationship
whatsoever to what is printed in the window. That is what we are trying
to correct with the Johnson-Holt amendment. The Rogers second order
amendment completely changes the nature of what we are trying to do.
Mr. ROGERS of Michigan. Mr. Chairman, I yield 1 minute to the
distinguished gentleman from Michigan (Mr. Schwarz), a great public
servant.
Mr. SCHWARZ. Mr. Chairman, the Johnson amendment requires the EPA to
change the testing procedures that auto companies use to determine the
fuel economy numbers that go on the dealer label. Her amendment
requires auto companies to do one test for labeling and a separate test
for CAFE. The language in this amendment costs the companies
approximately twice as much as the simpler testing they are doing now.
This goes to the heart of what we are doing to the auto industry now,
unintentionally perhaps, and that is beating up on them; and we should
not do that.
The Rogers amendment deals with the need for improved dealer label
accuracy, while only requiring one test. Instead of requiring the EPA
to change testing procedures, the Rogers amendment requires the EPA to
change the adjustment factors that the EPA currently uses to make the
fuel economy label accurate.
This is the way to go. It achieves the goal we all want to have,
accuracy, in a much more reasonable and a much less expensive way. It
is not a fudge.
Mr. ROGERS of Michigan. Mr. Chairman, the gentleman from Michigan, a
medical doctor, said it all so well, I yield back the balance of my
time.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from Michigan (Mr. Mike Rogers) to the amendment offered by
the gentlewoman from Connecticut (Mrs. Johnson).
The question was taken; and the Acting Chairman announced that the
ayes appeared to have it.
Mr. HOLT. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Michigan
(Mr. Mike Rogers) will be postponed.
It is now in order to consider amendment No. 7 printed in House
Report 109-49.

Amendment No. 7 Offered by Mr. Bishop of New York

Mr. BISHOP of New York. Mr. Chairman, I offer an amendment.
The Acting CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 7 offered by Mr. Bishop of New York:
In section 109(2), at the end of the quoted material insert
the following new paragraph:
``(4) All housing constructed under the military housing
privatization initiative of the Department of Defense shall,
to the maximum extent practicable--
``(A) meet Federal building energy efficiency standards
under this section; and
``(B) include Energy Star appliances.
In title I, subtitle A, add at the end the following new
section:

SEC. 112. MODEL BUILDING ENERGY CODE COMPLIANCE GRANT
PROGRAM.

(a) In General.--The Secretary shall carry out a program to
provide grants to each State that the Secretary determines,
with respect to new buildings in the State, achieves at least
a 90-percent rate of compliance (based on energy performance)
with the most recent model building energy codes.
(b) Guidelines.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue guidelines
that standardize criteria by which a State that seeks to
receive a grant under this section may--
(1) verify compliance with applicable model building energy
codes; and
(2) demonstrate eligibility to receive a grant under this
section.
(c) Local Government Codes.--In the case of a State in
which building energy codes are established by local
governments--
(1) A local government may--
(A) apply for a grant under this section; and
(B) verify compliance, and demonstrate eligibility, for the
grant under subsection (b); and
(2) if the Secretary determines that the local government
is eligible to receive a grant, the Secretary may provide a
grant to the local government.
(d) Use of Funds.--Funds from a grant provided under this
section may be used only to carry out activities relating to
the implementation of building energy codes and beyond-code
building practices.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $25,000,000 for each of fiscal years
2006 through 2010.
(2) Set aside.--Of the amounts authorized to be
appropriated under paragraph (1), the Secretary may use not
more than $500,000 for each fiscal year--
(A) to develop compliance guidelines;
(B) to train State and local officials; and
(C) to administer grants provided under this section.
In section 131(a), amend the proposed section 324A(3) to
read as follows:
``(3) preserve the integrity of the Energy Star label by--
``(A) regularly updating Energy Star criteria; and
``(B) ensuring, in general, that--
``(i) not more than 25 percent of available models in a
product class receive the Energy Star designation; and
``(ii) Energy Star designated products and buildings are at
least 10 percent more efficient than--

``(I) appliance standards in effect on the date of
enactment of this section; and
``(II) the most recent model energy code;

In section 133(a)(2), add at the end the following new
paragraphs:
``(45)(A) The term `commercial prerinse spray valve' means
a handheld device designed and marketed for use with
commercial dishwashing and ware washing equipment that sprays
water on dishes, flatware, and other food service items for
the purpose of removing food residue before cleaning the
items.
``(B) The term `commercial prerinse spray valve' may
include (as determined by the secretary by rule) products--
``(i) that are extensively used in conjunction with
commercial dishwashing and ware washing equipment;
``(ii) the application of standards to which would result
in significant energy savings; and
``(iii) the application of standards to that would meet the
criteria specified in subsection (o)(4).
``(C) The term `commercial prerinse spray valve' may
exclude (as determined by the secretary by rule) products--
``(i) that are used for special food service applications;
``(ii) that are unlikely to be widely used in conjunction
with commercial dishwashing and ware washing equipment; and
``(iii) the application of standards to which would not
result in significant energy savings.
``(46) The term `dehumidifier' means a self-contained,
electrically operated, and mechanically encased assembly
consisting of--
``(A) a refrigerated surface (evaporator) that condenses
moisture from the atmosphere;
``(B) a refrigerating system, including an electric motor;

[[Page H2348]]

``(C) an air-circulating fan; and
``(D) means for collecting or disposing of the
condensate.''.
In section 133(b)(1), insert after the proposed paragraph
(13) the following new paragraphs:
``(14) Test procedures for dehumidifiers shall be based on
the test criteria used under the Energy Star Program
Requirements for Dehumidifiers developed by the Environmental
Protection Agency, as in effect on the date of enactment of
this paragraph unless revised by the Secretary pursuant to
this section.
``(15) The test procedure for measuring flow rate for
commercial prerinse spray valves shall be based on American
Society for Testing and Materials Standard F2324, entitled
`Standard Test Method for Prerinse Spray Valves.'''.
In section 133(c), at the end of the quoted material insert
the following new subsections:
``(ee) Dehumidifiers.--(1) Dehumidifiers manufactured on or
after October 1, 2007, shall have an Energy Factor that meets
or exceeds the following values:

````Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
.............................................................1.00....

> 25 -.......................................................1.20....

> 35 -.......................................................1.30....

> 54 - < 75..................................................1.50....

............................................................2.25.....

``(2)(A) Not later than October 1, 2009, the Secretary
shall publish a final rule in accordance with subsections (o)
and (p), to determine whether the standards established under
paragraph (1) should be amended.
``(B) The final rule shall contain any amendment by the
Secretary and shall provide that the amendment shall apply to
products manufactured on or after October 1, 2012.
``(C) If the Secretary does not publish an amendment that
takes effect by October 1, 2012, dehumidifiers manufactured
on or after October 1, 2012, shall have an Energy Factor that
meets or exceeds the following values:

````Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
.............................................................1.20....

> 25 -.......................................................1.30....

> 35 -.......................................................1.40....

> 45 -.......................................................1.50....

> 54 - < 75..................................................1.60....

.............................................................2.5.....

``(ff) Commercial Prerinse Spray Valves.--Commercial
prerinse spray valves manufactured on or after January 1,
2006, shall have a flow rate less than or equal to 1.6
gallons per minute.
``(gg) Standards for Certain Furnaces.--(1) Notwithstanding
subsection (f) and except as provided in paragraphs (2) and
(3), a furnace (including a furnace designed solely for
installation in a mobile home) manufactured 3 or more years
after the date of enactment of this subsection shall have an
annual fuel utilization efficiency of--
``(A) for natural gas- and propane-fired equipment, not
less than 80 percent; and
``(B) for oil-fired equipment not less than 83 percent.
``(2)(A) Notwithstanding subsection (f) and except as
provided in paragraph (3)--
``(i) a boiler (other than a gas steam boiler) manufactured
3 or more years after the date of enactment of this
subsection shall have an annual fuel utilization efficiency
of not less than 84 percent; and
``(ii) a gas steam boiler manufactured 3 or more years
after the date of enactment of this subsection shall have an
annual fuel utilization efficiency of not less than 82
percent.
``(B)(i) Notwithstanding subsection (f), if, after the date
of enactment of this subsection, the Governor of a cold
climate State files with the Secretary a notice that the
State has implemented a requirement for an annual fuel
utilization efficiency of not less than 90 percent for
furnaces (other than boilers and furnaces designed solely for
installation in a mobile home or boiler), the annual fuel
utilization efficiency of a furnace sold in that State shall
be not less than 90 percent.
``(ii) If a State described in clause (i) fails to
implement or reasonably enforce (as determined by the
Secretary) annual fuel utilization efficiency in accordance
with that clause, the annual fuel use efficiency for furnaces
(other than boilers and furnaces designed solely for
installation in a mobile home or boiler) in that State shall
be the fuel utilization efficiency established under
paragraph (1).
``(3)(A) Not later than 5 years after the date on which a
standard for a product under this subsection takes effect,
the Secretary shall promulgate a final rule to determine
whether that standard should be amended.
``(B) If the Secretary determines that a standard under
subparagraph (A) should be amended--
``(i) the final rule promulgated pursuant to subparagraph
(A) shall contain the new standard; and
``(ii) the new standard shall apply to any product
manufactured after the date that is 5 years after the date on
which the final rule is promulgated.''.
In section 134(b), in the quoted material, insert at the
end the following new paragraphs:
``(6) In the case of dehumidifiers covered under section
325(ee), the Commission shall not require an Energy Guide
label.
``(7)(A) Not later than July 1, 2006, the Commission shall
prescribe by rule, pursuant to this section, labeling
requirements for the electricity used by ceiling fans to
circulate air in a room.
``(B) The requirements shall be based on the test procedure
and labeling requirements contained in the Energy Star
Program Requirements for Residential Ceiling Fans, version
2.0, issued by the Environmental Protection Agency, except
that third party testing and other non-labeling requirements
shall not be promulgated unless the Commission determines the
requirements are necessary to achieve compliance.
``(C) The rule shall apply to products manufactured after
the later of--
``(i) January 1, 2007; or
``(ii) the date that is 60 days after the final rule is
prescribed.''.
In section 135, in the proposed subsection (h), insert ``,
upon adoption of a standard under this Act'' after ``fan
light kits''.
In title I, subtitle, C, add at the end the following new
section:

SEC. 137. COMMERCIAL PACKAGE AIR CONDITIONING AND HEATING
EQUIPMENT.

(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (D) through (G) as
subparagraphs (E) through (H), respectively; and
(B) by inserting after subparagraph (C) the following:
``(D) Very large commercial package air conditioning and
heating equipment.'';
(2) in paragraph (2)(B), by striking ``small and large'';
(3) by striking paragraphs (8) and (9) and inserting the
following:
``(8)(A) The term `commercial package air conditioning and
heating equipment' means air-cooled, water-cooled,
evaporatively-cooled, or water source (not including ground
water source) electrically operated, unitary central air
conditioners and central air conditioning heat pumps for
commercial application.
``(B) The term `small commercial package air conditioning
and heating equipment' means commercial package air
conditioning and heating equipment that is rated below
135,000 Btu per hour (cooling capacity).
``(C) The term `large commercial package air conditioning
and heating equipment' means commercial package air
conditioning and heating equipment that is rated at or above
135,000 Btu per hour and below 240,000 Btu per hour (cooling
capacity).
``(D) The term `very large commercial package air
conditioning and heating equipment' means commercial package
air conditioning and heating equipment that is rated at or
above 240,000 Btu per hour and below 760,000 Btu per hour
(cooling capacity).'';
(4) by redesignating paragraphs (10) through (18) as
paragraphs (9) through (17), respectively; and
(5) in paragraph (10) (as redesignated by subparagraph
(D)), by inserting ``, except for gas unit heaters and gas
duct furnaces'' after ``furnaces''.
(b) Standards.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(1) in the subsection heading, by striking ``Small and
Large'' and inserting ``Small, Large, and Very Large'';
(2) in paragraph (1), by inserting ``but before January 1,
2010,'' after ``January 1, 1994,'';
(3) in paragraph (2), by inserting ``but before January 1,
2010,'' after ``January 1, 1995,'';
(4) in paragraph (4), by inserting ``, except for a gas
unit heater or gas duct furnace,'' after ``boiler'';
(5) in paragraph (6)--
(A) in subparagraph (A)--
(i) by inserting ``(i)'' after ``(A)'';
(ii) by striking ``the date of enactment of the Energy
Policy Act of 1992'' and inserting ``January 1, 2010'';
(iii) by inserting after ``large commercial package air
conditioning and heating equipment'' the following: ``and
very large commercial package air conditioning and heating
equipment, or if ASHRAE/IES Standard 90.1, as in effect on
October 24, 1992, is amended with respect to any''; and
(iv) by adding at the end the following:
``(ii) If ASHRAE/IES Standard 90.1 is not amended with
respect to small commercial package air conditioning and
heating equipment, large commercial package air conditioning
and heating equipment, and very large commercial package air
conditioning and heating equipment during the 5-year period
beginning on the effective date of a standard, the Secretary
may initiate a rulemaking to determine whether a more
stringent standard would result in significant additional
conservation of energy and is technologically feasible and
economically justified.
``(iii) This subparagraph does not apply to gas-fired warm-
air furnaces, gas-fired package boilers, storage water
heaters, gas unit heaters, or gas duct furnaces manufactured
5 or more years after the date of enactment of the National
Energy Efficiency Policy Act of 2005.''; and
(B) in subparagraph (C)(ii), by inserting ``and very large
commercial package air conditioning and heating equipment''
after ``large commercial package air conditioning and heating
equipment''; and
(6) by adding at the end the following:
``(7) Each small commercial package air conditioning and
heating equipment manufactured on or after January 1, 2010,
shall meet the following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or

[[Page H2349]]

above 65,000 btu per hour (cooling capacity) and less than
135,000 btu per hour (cooling capacity) shall be--
``(i) 11.2 for equipment with no heating or electric
resistance heating; and
``(ii) 11.0 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 65,000 btu per
hour (cooling capacity) and less than 135,000 btu per hour
(cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or electric
resistance heating; and
``(ii) 10.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 65,000 Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be 3.3 (at a
high temperature rating of 47 degrees F db).
``(8) Each large commercial package air conditioning and
heating equipment manufactured on or after January 1, 2010,
shall meet the following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 135,000 btu per hour
(cooling capacity) and less than 240,000 Btu per hour
(cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or electric
resistance heating; and
``(ii) 10.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 135,000 Btu
per hour (cooling capacity) and less than 240,000 btu per
hour (cooling capacity) shall be--
``(i) 10.6 for equipment with no heating or electric
resistance heating; and
``(ii) 10.4 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 135,000 Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be 3.2 (at a
high temperature rating of 47 degrees F db).
``(9) Each very large commercial package air conditioning
and heating equipment manufactured on or after January 1,
2010, shall meet the following standards:
``(A) The minimum energy efficiency ratio of air-cooled
central air conditioners at or above 240,000 btu per hour
(cooling capacity) and less than 760,000 Btu per hour
(cooling capacity) shall be--
``(i) 10.0 for equipment with no heating or electric
resistance heating; and
``(ii) 9.8 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(B) The minimum energy efficiency ratio of air-cooled
central air conditioner heat pumps at or above 240,000 Btu
per hour (cooling capacity) and less than 760,000 Btu per
hour (cooling capacity) shall be--
``(i) 9.5 for equipment with no heating or electric
resistance heating; and
``(ii) 9.3 for equipment with all other heating system
types that are integrated into the equipment (at a standard
rating of 95 degrees F db).
``(C) The minimum coefficient of performance in the heating
mode of air-cooled central air conditioning heat pumps at or
above 240,000 Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be 3.2 (at a
high temperature rating of 47 degrees F db).
``(10) Notwithstanding paragraph (4) and except as provided
in paragraph (14), the minimum thermal efficiency at the
maximum rated capacity of a gas-fired warm-air furnace with
the capacity of 225,000 Btu per hour or more manufactured 4
or more years after the date of enactment of this paragraph
shall be 79.5 percent.
``(11) Notwithstanding paragraph (4) and except as provided
in paragraph (14), the minimum combustion efficiency at the
maximum rated capacity of a gas-fired package boiler with the
capacity of 300,000 Btu per hour or more manufactured 4 or
more years after the date of enactment of this paragraph
shall be 84 percent.
``(12) Notwithstanding paragraph (5) (excluding paragraph
(5)(g)), and except as provided in paragraph (14)--
``(A) the maximum standby loss (expressed as a percent per
hour) of a gas-fired storage water heater shall be 1.30
(expressed as a measurement of storage volume in gallons);
and
``(B) the minimal thermal efficiency of a gas-fired storage
water heater shall be 82 percent.
``(13) Except as provided in paragraph (14), each gas unit
heater and gas duct furnace manufactured 3 or more years
after the date of enactment of this paragraph shall be
equipped with--
``(A) an intermittent ignition device; and
``(B)(i) power venting; or
``(ii) an automatic flue damper.
``(14)(A) Not later than 5 years after the date on which a
standard for a product under paragraph (10), (11), (12), or
(13) takes effect, the Secretary shall promulgate a final
rule to determine whether the standard for that product
should be amended.
``(B) If the Secretary determines that a standard should be
amended under subparagraph (A)--
``(i) the final rule promulgated pursuant to subparagraph
(A) shall contain the new standard; and
``(ii) the new standard shall apply to any product
manufactured 4 or more years after the date on which the
final rule is promulgated.''.
(c) Test Procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended in subsections
(a)(4) and (d)(1), by inserting ``very large commercial
package air conditioning and heating equipment,'' after
``large commercial package air conditioning and heating
equipment,'' each place it appears.
(d) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended in the first
and second sentences, by inserting ``very large commercial
package air conditioning and heating equipment,'' after
``large commercial package air conditioning and heating
equipment,'' each place it appears.
(e) Administration, Penalties, Enforcement, and
Preemption.--Section 345 of the Energy Policy and
Conservation Act (42 U.S.C. 6316) is amended by adding at the
end the following:
``(d)(1) Except as provided in paragraphs (2) and (3),
section 327 shall apply with respect to the equipment
specified in section 340(1)(D) to the same extent and in the
same manner as section 327 applies under part A on the date
of enactment of this subsection.
``(2) Any State or local standard prescribed or enacted
prior to the date of enactment of this subsection shall not
be preempted until the standards established under section
342(a)(9) take effect on January 1, 2010.
``(3) If the California Energy Commission adopts, not later
than March 31, 2005, a regulation concerning the energy
efficiency or energy effective after, the standards
established under section 342(a)(9) take effect on January 1,
2010.''.
In section 304, insert at the end the following: ``In
determining whether to defer such acquisition, the Secretary
shall use market-based practices when deciding to acquire
petroleum for the Strategic Petroleum Reserve, as used prior
to 2002; carry out and make public analyses of costs and
savings when making or deferring such acquisi tions; take
into account and report to Congress the impact the
acquisition will have on the domestic and foreign supply of
petroleum and the resulting price increases or decreases; and
consult with the Secretary of Homeland Security on the
security consequences of such acquisition or deferral.''.
In title III, subtitle A, add at the end the following new
section:

SEC. 305. SENSE OF THE HOUSE OF REPRESENTATIVES.

It is the sense of the House of Representatives that, to
address the crude oil price problem in the short-term, the
President should communicate immediately to the members of
the Organization of Petroleum Exporting Countries (OPEC)
cartel and non-OPEC countries that participate in the cartel
of crude oil producing countries that--
(1) the United States seeks to maintain strong relations
with crude oil producers around the world while promoting
international efforts to remove barriers to energy trade and
investment and increased access for United States energy
firms around the world;
(2) the United States believes that restricting supply in a
market that is in demand for additional crude oil does
serious damage to the efforts that OPEC members have made to
demonstrate that they represent a reliable source of crude
oil supply;
(3) the United States believes that stable crude oil prices
and supplies are essential for strong economic growth
throughout the world;
(4) the United States seeks an immediate increase in the
OPEC crude oil production quotas; and
(5) the United States will temporarily suspend further
purchases of crude oil for the Strategic Petroleum Reserve,
thereby freeing up additional supply for the marketplace.
Amend section 355 to read as follows (and amend the table
of contents accordingly):

SEC. 355. GREAT LAKES OIL AND GAS DRILLING BAN.

No Federal or State permit or lease shall be issued for new
oil and gas slant, directional, or offshore drilling in or
under one or more of the Great Lakes.
Title XII is amended by striking sections 1201 through 1235
and sections 1237 through 1298, by striking the title
heading, by inserting the following before title XIII, by
redesignating section 1236 (relating to native load service
obligation) as section 1233 of the following and inserting
such redesignated section 1233 after section 1232 of the
following, and by making the necessary conforming changes in
the table of contents:

TITLE XII--ELECTRICITY

SEC. 1201. SHORT TITLE.

This title may be cited as the ``Electric Reliability Act
of 2005''.

Subtitle A--Reliability Standards

SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) is amended by adding at the end the following:

``SEC. 215. ELECTRIC RELIABILITY.

``(a) Definitions.--For purposes of this section:

[[Page H2350]]

``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy transmission
network (or any portion thereof); and
``(B) electric energy from generation facilities needed to
maintain transmission system reliability.

The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term
includes requirements for the operation of existing bulk-
power system facilities and the design of planned additions
or modifications to such facilities to the extent necessary
to provide for reliable operation of the bulk-power system,
but the term does not include any requirement to enlarge such
facilities or to construct new transmission capacity or
generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so
that instability, uncontrolled separation, or cascading
failures of such system will not occur as a result of a
sudden disturbance or unanticipated failure of system
elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators
of other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(b) Jurisdiction and Applicability.--(1) The Commission
shall have jurisdiction, within the United States, over the
ERO certified by the Commission under subsection (c), any
regional entities, and all users, owners and operators of the
bulk-power system, including but not limited to the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk-power system shall comply with
reliability standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement
the requirements of this section not later than 180 days
after the date of enactment of this section.
``(c) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may
submit an application to the Commission for certification as
the Electric Reliability Organization. The Commission may
certify 1 such ERO if the Commission determines that such
ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners and
operators of the bulk-power system, while assuring fair
stakeholder representation in the selection of its directors
and balanced decisionmaking in any ERO committee or
subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and other
charges among end users for all activities under this
section;
``(C) provide fair and impartial procedures for enforcement
of reliability standards through the imposition of penalties
in accordance with subsection (e) (including limitations on
activities, functions, or operations, or other appropriate
sanctions);
``(D) provide for reasonable notice and opportunity for
public comment, due process, openness, and balance of
interests in developing reliability standards and otherwise
exercising its duties; and
``(E) provide for taking, after certification, appropriate
steps to gain recognition in Canada and Mexico.

If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, it shall
order the ERO to develop and file with the Commission a
modified reliability standard under paragraph (4) or (5) of
this subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to
paragraph (2), a penalty on a user or owner or operator of
the bulk-power system for a violation of a reliability
standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the
Commission, on its own motion or upon application by the
user, owner or operator that is the subject of the penalty
filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or
the initiation of review by the Commission on its own motion,
shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon
application by the user, owner or operator that is the
subject of such penalty. In any proceeding to review a
penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may
consist solely of the record before the ERO and
opportunity for the presentation of supporting reasons to
affirm, modify, or set aside the penalty), shall by order
affirm, set aside, reinstate, or modify the penalty, and,
if appropriate, remand to the ERO for further proceedings.
The Commission shall implement expedited procedures for
such hearings.
``(3) On its own motion or upon complaint, the Commission
may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards
under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced stakeholder
board.
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.

The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an

[[Page H2351]]

Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
``(5) The Commission may take such action as is necessary
or appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission
order affecting the ERO or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user,
owner, or operator to remedy the violation in a timely
manner.
``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of its basis and
purpose. The Commission, upon its own motion or complaint,
may propose a change to the rules of the ERO. A proposed rule
or proposed rule change shall take effect upon a finding by
the Commission, after notice and opportunity for comment,
that the change is just, reasonable, not unduly
discriminatory or preferential, is in the public interest,
and satisfies the requirements of subsection (c).
``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--The President
is urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness
of the ERO in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO shall have authority
to develop and enforce compliance with reliability standards
for only the bulk-power system.
``(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the
safety, adequacy, and reliability of electric service within
that State, as long as such action is not inconsistent with
any reliability standard, except that the State of New York
may establish rules that result in greater reliability within
that State, as long as such action does not result in lesser
reliability outside the State than that provided by the
reliability standards..
``(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
``(5) The Commission, after consultation with the ERO and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at
least \2/3\ of the States within a region that have more than
\1/2\ of their electric load served within the region. A
regional advisory body shall be composed of 1 member from
each participating State in the region, appointed by the
Governor of each State, and may include representatives of
agencies, States, and provinces outside the United States. A
regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether a
standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in
the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly
discriminatory or preferential, and in the public interest
and any other responsibilities requested by the Commission.
The Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
``(k) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 215(c) of the Federal Power Act and any regional
entity delegated enforcement authority pursuant to section
215(e)(4) of that Act are not departments, agencies, or
instrumentalities of the United States Government.
(c) Limitation on Annual Appropriations.--There is
authorized to be appropriated not mroe than $50,000,000 per
year for fiscal years 2006 through 2015 for all activities
under the amendment made by subsection (a).

Subtitle B--Transmission Operation Improvements

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 the following new
section:

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING
UTILITIES.

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL
TRANSMISSION ORGANIZATIONS.

[[Page H2352]]

consistency with said Federal utility's statutory
authorities, obligations, and limitations;
(2) provisions for monitoring and oversight by the Federal
utility of the RTO's or ISO's fulfillment of the terms and
conditions of the contract, agreement or other arrangement,
including a provision for the resolution of disputes through
arbitration or other means with the regional transmission
organization or with other participants, notwithstanding the
obligations and limitations of any other law regarding
arbitration; and
(3) a provision that allows the Federal utility to withdraw
from the RTO or ISO and terminate the contract, agreement or
other arrangement in accordance with its terms.

Neither this section, actions taken pursuant to it, nor any
other transaction of a Federal utility using an RTO or ISO
shall confer upon the Federal Energy Regulatory Commission
jurisdiction or authority over the Federal utility's electric
generation assets, electric capacity or energy that the
Federal utility is authorized by law to market, or the
Federal utility's power sales activities.
(c) Existing Statutory and Other Obligations.--
(1) System operation requirements.--No statutory provision
requiring or authorizing a Federal utility to transmit
electric power or to construct, operate or maintain its
transmission system shall be construed to prohibit a transfer
of control and use of its transmission system pursuant to,
and subject to all requirements of subsection (b).
(2) Other obligations.--This subsection shall not be
construed to--
(A) suspend, or exempt any Federal utility from, any
provision of existing Federal law, including but not limited
to any requirement or direction relating to the use of the
Federal utility's transmission system, environmental
protection, fish and wildlife protection, flood control,
navigation, water delivery, or recreation; or
(B) authorize abrogation of any contract or treaty
obligation.
(3) Repeal.--Section 311 of title III of Appendix B of the
Act of October 27, 2000 (P.L. 106-377, section 1(a)(2); 114
Stat. 1441, 1441A-80; 16 U.S.C. 824n) is repealed.

Subtitle C--Amendments to PURPA

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

SEC. 1252. SMART METERING.

[[Page H2353]]

the end of paragraph (4) and inserting ``; and'', and by
adding the following at the end thereof:
``(5) technologies, techniques, and rate-making methods
related to advanced metering and communications and the use
of these technologies, techniques and methods in demand
response programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended
by adding the following at the end thereof:
``(d) Demand Response.--The Secretary shall be responsible
for--
``(1) educating consumers on the availability, advantages,
and benefits of advanced metering and communications
technologies, including the funding of demonstration or pilot
projects;
``(2) working with States, utilities, other energy
providers and advanced metering and communications experts to
identify and address barriers to the adoption of demand
response programs; and
``(3) not later than 180 days after the date of enactment
of the Energy Policy Act of 2005, providing Congress with a
report that identifies and quantifies the national benefits
of demand response and makes a recommendation on achieving
specific levels of such benefits by January 1, 2007.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--It is the policy of the United States to
encourage States to coordinate, on a regional basis, State
energy policies to provide reliable and affordable demand
response services to the public.
(2) Technical assistance.--The Secretary of Energy shall
provide technical assistance to States and regional
organizations formed by 2 or more States to assist them in--
(A) identifying the areas with the greatest demand response
potential;
(B) identifying and resolving problems in transmission and
distribution networks, including through the use of demand
response;
(C) developing plans and programs to use demand response to
respond to peak demand or emergency needs; and
(D) identifying specific measures consumers can take to
participate in these demand response programs.
(3) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the Commission
shall prepare and publish an annual report, by appropriate
region, that assesses demand response resources, including
those available from all consumer classes, and which
identifies and reviews--
(A) saturation and penetration rate of advanced meters and
communications technologies, devices and systems;
(B) existing demand response programs and time-based rate
programs;
(C) the annual resource contribution of demand resources;
(D) the potential for demand response as a quantifiable,
reliable resource for regional planning purposes; and
(E) steps taken to ensure that, in regional transmission
planning and operations, demand resources are provided
equitable treatment as a quantifiable, reliable resource
relative to the resource obligations of any load-serving
entity, transmission provider, or transmitting party.
(f) Federal Encouragement of Demand Response Devices.--It
is the policy of the United States that time-based pricing
and other forms of demand response, whereby electricity
customers are provided with electricity price signals and the
ability to benefit by responding to them, shall be
encouraged, and the deployment of such technology and devices
that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated. It
is further the policy of the United States that the benefits
of such demand response that accrue to those not deploying
such technology and devices, but who are part of the same
regional electricity entity, shall be recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(4)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to the standard
established by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to the
standard established by paragraph (14) of section 111(d).''.
(h) Failure to Comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:

``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering
Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility within
the previous 3 years; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such utility
within the previous 3 years.''.
(2) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.

Subtitle D--Market Transparency, Enforcement, and Consumer Protection

SEC. 1282. MARKET MANIPULATION.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:

``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.

``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES.

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC UNDER
FEDERAL POWER ACT.

Part III of the Federal Power Act is amended by inserting
the following new section after section 319 and by
redesignating sections 320 and 321 as sections 321 and 322,
respectively:

``SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC.

[[Page H2354]]

of this section, the Commission may not issue, adopt, order,
approve, or promulgate any exemption, waiver, or other
reduced or abbreviated form of compliance with the
requirements of section 204, 301, 304, or 305 (including any
prospective blanket order) until after the rule promulgated
under subsection (a) has taken effect.
``(c) Previous Ferc Action.--The Commission shall undertake
a review, by rule or order, of each exemption, waiver, or
other reduced or abbreviated form of compliance described in
subsection (a) that was taken before the date of enactment of
this section. No such action may continue in force and effect
after the date 18 months after the date of enactment of this
section unless the Commission finds that such action complies
with the rule under subsection (a).
``(d) Exemption Under 204(f) not Applicable.--For purposes
of this section, in applying section 204, the provisions of
section 204(f) shall not apply.''.

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES AND
TRANSMISSION.

(a) Audit Trails.--Section 304 of the Federal Power Act is
amended by adding the following new subsection at the end
thereof:
``(c)(1) The Commission shall, by rule or order, require
each person or other entity engaged in the transmission of
electric energy in interstate commerce or the sale of
electric energy at wholesale in interstate commerce, and each
broker, dealer, and power marketer involved in any such
transmission or sale, to maintain, and periodically submit to
the Commission, such records, in electronic form, of each
transaction relating to such transmission or sale as may be
necessary to determine whether any person has employed any
fraudulent, manipulative, or deceptive device or contrivance
in contravention of rules promulgated by the Commission.
``(2) Section 201(f) shall not limit the application of
this subsection.''.
(b) Natural Gas.--Section 8 of the Natural Gas Act is
amended by adding the following new subsection at the end
thereof:
``(d) The Commission shall, by rule or order, require each
person or other entity engaged in the transportation of
natural gas in interstate commerce, or the sale in interstate
commerce of natural gas for resale for ultimate public
consumption for domestic, commercial, industrial, or any
other use, and each broker, dealer, and power marketer
involved in any such transportation or sale, to maintain, and
periodically submit to the Commission, such records, in
electronic form, of each transaction relating to such
transmission or sale as may be necessary to determine whether
any person has employed any fraudulent, manipulative, or
deceptive device or contrivance in contravention of rules
promulgated by the Commission.''.

SEC. 1286. TRANSPARENCY.

The term does not include any bona fide newspaper, news
magazine, or business or financial publication of general and
regular circulation, any self-regulatory organization, any
bank, broker, dealer, building and loan, savings and loan, or
homestead association, or cooperative bank, if such bank,
broker, dealer, association, or cooperative bank would be
deemed to be an electric power or natural gas information
processor solely by reason of functions performed by such
institutions as part of customary banking, brokerage,
dealing, association, or cooperative bank activities, or any
common carrier, as defined in section 3 of the Communications
Act of 1934, subject to the jurisdiction of the Federal
Communications Commission or a State commission, as defined
in section 3 of that Act, unless the Commission determines
that such carrier is engaged in the business of collecting,
processing, or preparing for distribution or publication,
information with respect to transactions in or quotations
involving the purchase or sale of electric power, natural
gas, the transmission of electric energy, or the
transportation of natural gas.
(b) Prohibition.--No electric power or natural gas
information processor may make use of the mails or any means
or instrumentality of interstate commerce--
(1) to collect, process, distribute, publish, or prepare
for distribution or publication any information with respect
to quotations for, or transactions involving the purchase or
sale of electric power, natural gas, the transmission of
electric energy, or the transportation of natural gas, or
(2) to assist, participate in, or coordinate the
distribution or publication of such information in
contravention of such rules and regulations as the Federal
Energy Regulatory Commission shall prescribe as necessary or
appropriate in the public interest to
(A) prevent the use, distribution, or publication of
fraudulent, deceptive, or manipulative information with
respect to quotations for and transactions involving the
purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas;
(B) assure the prompt, accurate, reliable, and fair
collection, processing, distribution, and publication of
information with respect to quotations for and transactions
involving the purchase or sale of electric power, natural
gas, the transmission of electric energy, or the
transportation of natural gas, and the fairness and
usefulness of the form and content of such information;
(C) assure that all such information processors may, for
purposes of distribution and publication, obtain on fair and
reasonable terms such information with respect to quotations
for and transactions involving the purchase or sale of
electric power, natural gas, the transmission of electric
energy, or the transportation of natural gas as is collected,
processed, or prepared for distribution or publication by any
exclusive processor of such information acting in such
capacity;
(D) assure that, subject to such limitations as the
Commission, by rule, may impose as necessary or appropriate
for the maintenance of fair and orderly markets, all persons
may obtain on terms which are not unreasonably discriminatory
such information with respect to quotations for and
transactions involving the purchase or sale of electric
power, natural gas, the transmission of electric energy, or
the transportation of natural gas as is published or
distributed by any electric power or natural gas information
processor;
(E) assure that all electricity and natural gas electronic
communication networks transmit and direct orders for the
purchase and sale of electricity or natural gas in a manner
consistent with the establishment and operation of an
efficient, fair, and orderly market system for electricity
and natural gas; and
(F) assure equal regulation of all markets involving the
purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas and all persons effecting transactions involving
the purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas.
(c) Related Commodities.--For purposes of this section, the
phrase ``purchase or sale of electric power, natural gas, the
transmission of electric energy, or the transportation of
natural gas'' includes the purchase or sale of any commodity
(as defined in the Commodities Exchange Act) relating to any
such purchase or sale if such commodity is excluded from
regulation under the Commodities Exchange Act pursuant to
section 2 of that Act.
(d) Prohibition.--No person who owns, controls, or is under
the control or ownership of a public utility, a natural gas
company, or a public utility holding company may own,
control, or operate any electronic computer network or other
mulitateral trading facility utilized to trade electricity or
natural gas.

SEC. 1287. PENALTIES.

[[Page H2355]]

``(A) involves the purchase or sale of electricity, the
taking of a false oath, the making of a false report,
bribery, perjury, burglary, any substantially equivalent
activity however denominated by the laws of the relevant
foreign government, or conspiracy to commit any such offense;
``(B) arises out of the conduct of the business of
transmitting electric energy in interstate commerce or
selling or purchasing electric energy at wholesale in
interstate commerce;
``(C) involves the larceny, theft, robbery, extortion,
forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of
funds, or securities, or substantially equivalent activity
however denominated by the laws of the relevant foreign
government; or
``(D) involves the violation of section 152, 1341, 1342, or
1343 or chapter 25 or 47 of title 18, United States Code, or
a violation of a substantially equivalent foreign statute.
``(3) Such entity is permanently or temporarily enjoined by
order, judgment, or decree of any court of competent
jurisdiction from acting as an investment adviser,
underwriter, broker, dealer, municipal securities dealer,
government securities broker, government securities dealer,
transfer agent, foreign person performing a function
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or as an affiliated person or employee of any
investment company, bank, insurance company, foreign entity
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or from engaging in or continuing any conduct or
practice in connection with any such activity, or in
connection with the purchase or sale of any security.
``(4) Such entity has willfully violated any provision of
this Act.
``(5) Such entity has willfully aided, abetted, counseled,
commanded, induced, or procured the violation by any other
person of any provision of this Act, or has failed reasonably
to supervise, with a view to preventing violations of the
provisions of this Act, another person who commits such a
violation, if such other person is subject to his
supervision. For the purposes of this paragraph no person
shall be deemed to have failed reasonably to supervise any
other person, if--
``(A) there have been established procedures, and a system
for applying such procedures, which would reasonably be
expected to prevent and detect, insofar as practicable, any
such violation by such other person, and
``(B) such person has reasonably discharged the duties and
obligations incumbent upon him by reason of such procedures
and system without reasonable cause to believe that such
procedures and system were not being complied with.
``(6) Such entity has been found by a foreign financial or
energy regulatory authority to have--
``(A) made or caused to be made in any application or
report required to be filed with a foreign regulatory
authority, or in any proceeding before a foreign financial or
energy regulatory authority, any statement that was at the
time and in the light of the circumstances under which it was
made false or misleading with respect to any material fact,
or has omitted to state in any application or report to the
foreign regulatory authority any material fact that is
required to be stated therein;
``(B) violated any foreign statute or regulation regarding
the transmission or sale of electricity or natural gas;
``(C) aided, abetted, counseled, commanded, induced, or
procured the violation by any person of any provision of any
statutory provisions enacted by a foreign government, or
rules or regulations thereunder, empowering a foreign
regulatory authority regarding transactions in electricity or
natural gas, or contracts of sale of electricity or natural
gas, traded on or subject to the rules of a contract market
or any board of trade, or has been found, by a foreign
regulatory authority, to have failed

reasonably to supervise, with a view to preventing violations
of such statutory provisions, rules, and regulations, another
person who commits such a violation, if such other person is
subject to his supervision.
``(7) Such entity is subject to any final order of a State
commission (or any agency or officer performing like
functions), State authority that supervises or examines
banks, savings associations, or credit unions, State
insurance commission (or any agency or office performing like
functions), an appropriate Federal banking agency (as defined
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), or the National Credit Union Administration,
that--
``(A) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
``(B) constitutes a final order based on violations of any
laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.''
(4) Such entity is subject to statutory disqualification
within the meaning of section 3(a)(39) of the Securities
Exchange Act of 1934.''.
(c) Natural Gas Act Penalties.--Section 21 of the Natural
Gas Act is amended by adding the following new subsection at
the end thereof:
``(c) Authority of a Court to Prohibit Persons From Certain
Activities.--In any proceeding under this section, the court
may censure, place limitations on the activities, functions,
or operations of, suspend or revoke the ability of any entity
(without regard to section 201(f)) to participate in the
transportation of natural gas in interstate commerce, or the
sale in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial,
industrial, or any other use if it finds that such censure,
placing of limitations, suspension, or revocation is in the
public interest and that one or more of the following applies
to such entity:
``(1) Such entity has willfully made or caused to be made
in any application or report required to be filed with the
Commission or with any other appropriate regulatory agency,
or in any proceeding before the Commission, any statement
which was at the time and in the light of the circumstances
under which it was made false or misleading with respect to
any material fact, or has omitted to state in any such
application or report any material fact which is required to
be stated therein.
``(2) Such entity has been convicted of any felony or
misdemeanor or of a substantially equivalent crime by a
foreign court of competent jurisdiction which the court
finds--
``(A) involves the purchase or sale of natural gas, the
taking of a false oath, the making of a false report,
bribery, perjury, burglary, any substantially equivalent
activity however denominated by the laws of the relevant
foreign government, or conspiracy to commit any such offense;
``(B) arises out of the conduct of the business of
transmitting natural gas in interstate commerce, or the
selling in interstate commerce of natural gas for resale for
ultimate public consumption for domestic, commercial,
industrial, or any other use;
``(C) involves the larceny, theft, robbery, extortion,
forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of
funds, or securities, or substantially equivalent activity
however denominated by the laws of the relevant foreign
government; or
``(D) involves the violation of section 152, 1341, 1342, or
1343 or chapter 25 or 47 of title 18, United States Code, or
a violation of a substantially equivalent foreign statute.
``(3) Such entity is permanently or temporarily enjoined by
order, judgment, or decree of any court of competent
jurisdiction from acting as an investment adviser,
underwriter, broker, dealer, municipal securities dealer,
government securities broker, government securities dealer,
transfer agent, foreign person performing a function
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or as an affiliated person or employee of any
investment company, bank, insurance company, foreign entity
substantially equivalent to any of the above, or entity or
person required to be registered under the Commodity Exchange
Act or any substantially equivalent foreign statute or
regulation, or from engaging in or continuing any conduct or
practice in connection with any such activity, or in
connection with the purchase or sale of any security.
``(4) Such entity has willfully violated any provision of
this Act.
``(5) Such entity has willfully aided, abetted, counseled,
commanded, induced, or procured the violation by any other
person of any provision of this Act, or has failed reasonably
to supervise, with a view to preventing violations of the
provisions of this Act, another person who commits such a
violation, if such other person is subject to his
supervision. For the purposes of this paragraph no person
shall be deemed to have failed reasonably to supervise any
other person, if--
``(A) there have been established procedures, and a system
for applying such procedures, which would reasonably be
expected to prevent and detect, insofar as practicable, any
such violation by such other person, and
``(B) such person has reasonably discharged the duties and
obligations incumbent upon him by reason of such procedures
and system without reasonable cause to believe that such
procedures and system were not being complied with.
``(6) Such entity has been found by a foreign financial or
energy regulatory authority to have--
``(A) made or caused to be made in any application or
report required to be filed with a foreign regulatory
authority, or in any proceeding before a foreign financial or
energy regulatory authority, any statement that was at the
time and in the light of the circumstances under which it was
made false or misleading with respect to any material fact,
or has omitted to state in any application or report to the
foreign regulatory authority any material fact that is
required to be stated therein;
``(B) violated any foreign statute or regulation regarding
the transmission or sale of electricity or natural gas;
``(C) aided, abetted, counseled, commanded, induced, or
procured the violation by any person of any provision of any
statutory provisions enacted by a foreign government, or
rules or regulations thereunder,

[[Page H2356]]

empowering a foreign regulatory authority regarding
transactions in electricity or natural gas, or contracts of
sale of electricity or natural gas, traded on or subject to
the rules of a contract market or any board of trade, or has
been found, by a foreign regulatory authority, to have failed
reasonably to supervise, with a view to preventing violations
of such statutory provisions, rules, and regulations, another
person who commits such a violation, if such other person is
subject to his supervision.
``(7) Such entity is subject to any final order of a State
commission (or any agency or officer performing like
functions), State authority that supervises or examines
banks, savings associations, or credit unions, State
insurance commission (or any agency or office performing like
functions), an appropriate Federal banking agency (as defined
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), or the National Credit Union Administration,
that--
``(A) bars such person from association with an entity
regulated by such commission, authority, agency, or officer,
or from engaging in the business of securities, insurance,
banking, savings association activities, or credit union
activities; or
``(B) constitutes a final order based on violations of any
laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.
``(8) Such entity is subject to statutory disqualification
within the meaning of section 3(a)(39) of the Securities
Exchange Act of 1934.''.

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS.

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN
ENERGY TRADING.

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES.

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT.

SEC. 1292. ACCOUNTS AND REPORTS.

Section 318 of the Federal Power Act is amended by adding
the following at the end thereof: ``This section shall not
apply to sections 301 and 304 of this Act.''.

SEC. 1293. MARKET-BASED RATES.

the Commission shall issue an order immediately modifying or
revoking the authority of that public utility to sell
electric energy at market-based rates.''.

SEC. 1294. ENFORCEMENT.

SEC. 1295. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

SEC. 1296. SAVINGS PROVISION.

Nothing in this title or in any amendment made by this
title shall be construed to affect the authority of any court
to make a determination in any proceeding commenced before
the enactment of this Act regarding the authority of the
Federal Energy Regulatory Commission to permit any person to
sell or distribute electric energy at market-based rates.
In section 25C(b)(1)(A) of the Internal Revenue Code of
1986, as proposed to be added by section 1311 of the bill,
insert after clause (iii) the following new clauses:
(iv) $150 for each electric heat pump water heater,
(v) $200 for each advanced natural gas, oil, propane
furnace, or hot water boiler installed in 2006 ($150 for
equipment installed in 2007, $100 for equipment installed in
2008),
(vi) $150 for each advanced natural gas, oil, or propane
water heater,
(vii) $50 for each mid-efficiency natural gas, oil, or
propane water heater,
(viii) $50 for an advanced main air circulating fan which
is installed in a furnace

[[Page H2357]]

with an Annual Fuel Utilization Efficiency of less than 92
percent,
(ix) $150 for each advanced combination space and water
heating system,
(x) $50 for each mid-efficiency combination space and water
heating system,
(xi) $250 for each geothermal heat pump, and
(xii) $250 for each advanced central air conditioner or
central heat pump ($150 for equipment installed in 2008).
In section 25C(a) of the Internal Revenue Code of 1986, as
proposed to be added by section 1311 of the bill, insert
after paragraph (3) the following new paragraph:
(4) the energy efficient building property described in
clauses (iv) through (xii) of subsection (b)(1)(A).
In section 25C(b) of the Internal Revenue Code of 1986, as
proposed to be added by section 1311 of the bill, insert
after paragraph (2) the following new paragraph:
(3) Safety certifications.--No credit shall be allowed
under this section for an item of property specified in
clause (iv) through (xii) of paragraph (1) unless such
property meets the performance and quality standards, and the
certification requirements (if any), which--
(A) have been prescribed by the Secretary by regulations
(after consultation with the Secretary of Energy or the
Administrator of the Environmental Protection Agency, as
appropriate),
(B) in the case of the energy efficiency ratio (EER) for
property described in clause (viii) or (ix) of subsection
(d)(1)(B)--
(i) require measurements to be based on published data
which is tested by manufacturers at 95 degrees Fahrenheit,
and
(ii) do not require ratings to be based on certified data
of the Air Conditioning and Refrigeration Institute, and
(C) are in effect at the time of the acquisition of the
property.
In section 25C(c) of the Internal Revenue Code of 1986, as
proposed to be added by section 1311 of the bill, add at the
end the following new paragraphs:
(4) Energy efficient building property.--The term ``energy
efficient building property'' means--
(A) an electric heat pump water heater which yields an
energy factor of at least 1.7 in the standard Department of
Energy test procedure,
(B) an advanced natural gas, oil, propane furnace, or hot
water boiler which achieves at least 92 percent annual fuel
utilization efficiency (AFUE) and which has an advanced main
air circulating fan,
(C) an advanced natural gas, oil, or propane water heater
which has an energy factor of at least 0.80 in the standard
Department of Energy test procedure,
(D) a mid-efficiency natural gas, oil, or propane water
heater which has an energy factor of at least 0.65 but less
than 0.80 in the standard Department of Energy test
procedure,
(E) an advanced main air circulating fan which has an
annual electricity use of no more than 2 percent of the total
annual energy use (as determined in the standard Department
of Energy test procedures) and which is used in a new natural
gas, propane, or oil-fired furnace,
(F) an advanced combination space and water heating system
which has a combined energy factor of at least 0.80 and a
combined annual fuel utilization efficiency (AFUE) of at
least 78 percent in the standard Department of Energy test
procedure,
(G) a mid-efficiency combination space and water heating
system which has a combined energy factor of at least 0.65
but less than 0.80 and a combined annual fuel utilization
efficiency (AFUE) of at least 78 percent in the standard
Department of Energy test procedure,
(H) a geothermal heat pump which has water heating
capability by a desuperheater or full-condensing option and
which has an energy efficiency ratio (EER) of at least 18 for
ground-loop systems, at least 21 for ground-water systems,
and at least 17 for direct GeoExchange systems; and
(I) a central air conditioner or central heat pump which
meets the Energy Star specifications as set by the
Environmental Protection Agency. The specifications must be
made effective after December 31, 2005, and must be current
as of the date of the expenditure or made effective later in
the calendar year of the expenditure.
(5) Labor costs.--Expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property and for piping or wiring to
interconnect property described in paragraph (4) to the
dwelling unit shall be taken into account for purposes of
this section.
In subtitle B of title XIII, add at the end the following:

SEC. 1318. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT
HOMES.

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

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

``(a) In General.--For purposes of section 38, in the case
of an eligible contractor with respect to a qualified new
energy efficient home, the credit determined under this
section for the taxable year with respect to such home is an
amount equal to the aggregate adjusted bases of all energy
efficient property installed in such home during construction
of such home.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed by this section with
respect to a dwelling unit shall not exceed--
``(i) in the case of a dwelling unit described in clause
(i) or (iii) of subsection (c)(3)(C), $1,000, and
``(ii) in the case of a dwelling unit described in clause
(ii) or (iv) of subsection (c)(3)(C), $2,000.
``(B) Prior credit amounts on same dwelling unit taken into
account.--If a credit was allowed under subsection (a) with
respect to a dwelling unit in 1 or more prior taxable years,
the amount of the credit otherwise allowable for the taxable
year with respect to such dwelling unit shall be reduced by
the sum of the credits allowed under subsection (a) with
respect to the dwelling unit for all prior taxable years.
``(2) Coordination with certain credits.--For purposes of
this section--
``(A) the basis of any property referred to in subsection
(a) shall be reduced by that portion of the basis of any
property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)) or to the
energy percentage of energy property (as determined under
section 48(a)), and
``(B) expenditures taken into account under section 47 or
48(a) shall not be taken into account under this section.
``(c) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible contractor'
means--
``(A) the person who constructed the qualified new energy
efficient home, or
``(B) in the case of a qualified new energy efficient home
which is a manufactured home, the manufactured home producer
of such home.

If more than 1 person is described in subparagraph (A) or (B)
with respect to any qualified new energy efficient home, such
term means the person designated as such by the owner of such
home.
``(2) Energy efficient property.--The term `energy
efficient property' means any energy efficient building
envelope component, and any energy efficient heating or
cooling equipment or system, which can, individually or in
combination with other components, result in a dwelling unit
meeting the requirements of this section.
``(3) Qualified new energy efficient home.--The term
`qualified new energy efficient home' means a dwelling unit--
``(A) located in the United States,
``(B) the construction of which is substantially completed
after the date of the enactment of this section, and
``(C) which is--
``(i) certified to have a level of annual heating and
cooling energy consumption which is at least 30 percent below
the annual level of heating and cooling energy consumption of
a comparable dwelling unit constructed in accordance with the
standards of chapter 4 of the 2003 International Energy
Conservation Code, as such Code (including supplements) is in
effect on the date of the enactment of this section, and for
which the heating and cooling equipment efficiencies
correspond to the minimum allowed under the regulations
established by the Department of Energy pursuant to the
National Appliance Energy Conservation Act of 1987 and in
effect at the time of construction, and to have building
envelope component improvements account for at least \1/3\ of
such 30 percent,
``(ii) certified to have a level of annual heating and
cooling energy consumption which is at least 50 percent below
such annual level and to have building envelope component
improvements account for at least \1/5\ of such 50 percent,
``(iii) a manufactured home which meets the requirements of
clause (i) and which conforms to Federal Manufactured Home
Construction and Safety Standards (section 3280 of title 24,
Code of Federal Regulations), or
``(iv) a manufactured home which meets the requirements of
clause (ii) and which conforms to Federal Manufactured Home
Construction and Safety Standards (section 3280 of title 24,
Code of Federal Regulations).
``(4) Construction.--The term `construction' includes
substantial reconstruction and rehabilitation.
``(5) Acquire.--The term `acquire' includes purchase and,
in the case of reconstruction and rehabilitation, such term
includes a binding written contract for such reconstruction
or rehabilitation.
``(6) Building envelope component.--The term `building
envelope component' means--
``(A) any sealant, insulation material, or system which is
specifically and primarily designed to reduce the heat loss
or gain of a dwelling unit when installed in or on such
dwelling unit,
``(B) exterior windows (including skylights),
``(C) exterior doors, and
``(D) any metal roof installed on a dwelling unit, but only
if such roof has appropriate pigmented coatings which--
``(i) are specifically and primarily designed to reduce the
heat gain of such dwelling unit, and
``(ii) meet the Energy Star program requirements.
``(d) Certification.--
``(1) Method of certification.--A certification described
in subsection (c)(3)(C) shall be determined in accordance
with guidance prescribed by the Secretary, after consultation
with the Secretary of Energy. Such guidance shall specify
procedures and methods for calculating energy and cost
savings.

[[Page H2358]]

``(2) Form.--A certification described in subsection
(c)(3)(C) shall be made in writing in a manner which
specifies in readily verifiable fashion the energy efficient
building envelope components and energy efficient heating or
cooling equipment installed and their respective rated energy
efficiency performance.
``(e) Basis Adjustment.--For purposes of this subtitle, if
a credit is determined under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so determined.
``(f) Special Rule With Respect to Buildings With Energy
Efficient Property.--In any case in which a deduction under
section 200 or a credit under section 25C has been allowed
with respect to property in connection with a dwelling unit,
the level of annual heating and cooling energy consumption of
the comparable dwelling unit referred to in clauses (i) and
(ii) of subsection (c)(3)(C) shall be determined assuming
such comparable dwelling unit contains the property for which
such deduction or credit has been allowed.
``(g) Application of Section.--
``(1) 50 percent homes.--In the case of any dwelling unit
described in clause (ii) or (iv) of subsection (c)(3)(C),
subsection (a) shall apply to qualified new energy efficient
homes acquired during the period beginning on the date of the
enactment of this section, and ending on December 31, 2009.
``(2) 30 percent homes.--In the case of any dwelling unit
described in clause (i) or (iii) of subsection (c)(3)(C),
subsection (a) shall apply to qualified new energy efficient
homes acquired during the period beginning on the date of the
enactment of this section, and ending on December 31,
2007.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) (relating to current year business credit) is amended
by striking ``plus'' at the end of paragraph (19), by
striking the period at the end of paragraph (18) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(21) the new energy efficient home credit determined
under section 45K(a).''.
(c) Basis Adjustment.--Subsection (a) of section 1016 is
amended by striking ``and'' at the end of paragraph (33), by
striking the period at the end of paragraph (34) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(35) to the extent provided in section 45K(e), in the
case of amounts with respect to which a credit has been
allowed under section 45K.''.
(d) Deduction for Certain Unused Business Credits.--Section
196(c) (defining qualified business credits) is amended by
striking ``and'' at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ``,
and'', and by adding after paragraph (12) the following new
paragraph:
``(13) the new energy efficient home credit determined
under section 45K(a).''.
(e) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:

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

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

SEC. 1319. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

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

``SEC. 179C. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

``(a) In General.--There shall be allowed as a deduction an
amount equal to the cost of energy efficient commercial
building property placed in service during the taxable year.
``(b) Maximum Amount of Deduction.--The deduction under
subsection (a) with respect to any building for the taxable
year and all prior taxable years shall not exceed an amount
equal to the product of--
``(1) $2.25, and
``(2) the square footage of the building.
``(c) Definitions.--For purposes of this section--
``(1) Energy efficient commercial building property.--The
term `energy efficient commercial building property' means
property--
``(A) which is installed on or in any building located in
the United States,
``(B) which is installed as part of--
``(i) the interior lighting systems,
``(ii) the heating, cooling, ventilation, and hot water
systems, or
``(iii) the building envelope, and
``(C) which is certified in accordance with subsection
(d)(6) as being installed as part of a plan designed to
reduce the total annual energy and power costs with respect
to the interior lighting systems, heating, cooling,
ventilation, and hot water systems of the building by 50
percent or more in comparison to a reference building which
meets the minimum requirements of Standard 90.1-2001 using
methods of calculation under subsection (d)(2).

A building described in subparagraph (A) may include any
residential rental property, including any low-rise
multifamily structure or single family housing property which
is not within the scope of Standard 90.1-2001, but shall not
include any qualified new energy efficient home (within the
meaning of section 45K(d)(3)) for which a credit under
section 45K has been allowed.
``(2) Standard 90.1-2001.--The term `Standard 90.1-2001'
means Standard 90.1-2001 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (as in
effect on April 2, 2003).
``(d) Special Rules.--
``(1) Partial allowance.--
``(A) In general.--Except as provided in subsection (f),
if--
``(i) the requirement of subsection (c)(1)(C) is not met,
but
``(ii) there is a certification in accordance with
paragraph (6) that any system referred to in subsection
(c)(1)(B) satisfies the energy-savings targets established by
the Secretary under subparagraph (B) with respect to such
system,

then the requirement of subsection (c)(1)(C) shall be treated
as met with respect to such system, and the deduction under
subsection (a) shall be allowed with respect to energy
efficient commercial building property installed as part of
such system and as part of a plan to meet such targets,
except that subsection (b) shall be applied to such property
by substituting `$.75' for `$2.25'.
``(B) Regulations.--The Secretary, after consultation with
the Secretary of Energy, shall establish a target for each
system described in subsection (c)(1)(B) which, if such
targets were met for all such systems, the building would
meet the requirements of subsection (c)(1)(C).
``(2) Methods of calculation.--The Secretary, after
consultation with the Secretary of Energy, shall promulgate
regulations which describe in detail methods for calculating
and verifying energy and power consumption and cost, based on
the provisions of the 2005 California Nonresidential
Alternative Calculation Method Approval Manual or, in the
case of residential property, the 2005 California Residential
Alternative Calculation Method Approval Manual. These
regulations shall meet the following requirements:
``(A) In calculating tradeoffs and energy performance, the
regulations shall prescribe the costs per unit of energy and
power, such as kilowatt hour, kilowatt, gallon of fuel oil,
and cubic foot or Btu of natural gas, which may be dependent
on time of usage. If a State has developed annual energy
usage and cost calculation procedures based on time of usage
costs for use in the performance standards of the State's
building energy code before the effective date of this
section, the State may use those annual energy usage and cost
calculation procedures in lieu of those adopted by the
Secretary.
``(B) The calculation methods under this paragraph need not
comply fully with section 11 of Standard 90.1-2001.
``(C) The calculation methods shall be fuel neutral, such
that the same energy efficiency features shall qualify a
building for the deduction under this section regardless of
whether the heating source is a gas or oil furnace or an
electric heat pump. The reference building for a proposed
design which employs electric resistance heating shall be
modeled as using a heat pump.
``(D) The calculation methods shall provide appropriate
calculated energy savings for design methods and technologies
not otherwise credited in either Standard 90.1-2001 or in the
2005 California Nonresidential Alternative Calculation Method
Approval Manual, including the following:
``(i) Natural ventilation.
``(ii) Evaporative cooling.
``(iii) Automatic lighting controls such as occupancy
sensors, photocells, and timeclocks.
``(iv) Daylighting.
``(v) Designs utilizing semi-conditioned spaces which
maintain adequate comfort conditions without air conditioning
or without heating.
``(vi) Improved fan system efficiency, including reductions
in static pressure.
``(vii) Advanced unloading mechanisms for mechanical
cooling, such as multiple or variable speed compressors.
``(viii) The calculation methods may take into account the
extent of commissioning in the building, and allow the
taxpayer to take into account measured performance which
exceeds typical performance.
``(ix) On-site generation of electricity, including
combined heat and power systems, fuel cells, and renewable
energy generation such as solar energy.
``(x) Wiring with lower energy losses than wiring
satisfying Standard 90.1-2001 requirements for building power
distribution systems.
``(3) Computer software.--
``(A) In general.--Any calculation under paragraph (2)
shall be prepared by qualified computer software.
``(B) Qualified computer software.--For purposes of this
paragraph, the term `qualified computer software' means
software--
``(i) for which the software designer has certified that
the software meets all procedures and detailed methods for
calculating energy and power consumption and costs as
required by the Secretary,
``(ii) which provides such forms as required to be filed by
the Secretary in connection with energy efficiency of
property and the deduction allowed under this section, and

[[Page H2359]]

``(iii) which provides a notice form which documents the
energy efficiency features of the building and its projected
annual energy costs.
``(4) Allocation of deduction for public property.--In the
case of energy efficient commercial building property
installed on or in public property, the Secretary shall
promulgate a regulation to allow the allocation of the
deduction to the person primarily responsible for designing
the property in lieu of the public entity which is the owner
of such property. Such person shall be treated as the
taxpayer for purposes of this section.
``(5) Notice to owner.--Each certification required under
this section shall include an explanation to the building
owner regarding the energy efficiency features of the
building and its projected annual energy costs as provided in
the notice under paragraph (3)(B)(iii).
``(6) Certification.--
``(A) In general.--The Secretary shall prescribe the manner
and method for the making of certifications under this
section.
``(B) Procedures.--The Secretary shall include as part of
the certification process procedures for inspection and
testing by qualified individuals described in subparagraph
(C) to ensure compliance of buildings with energy-savings
plans and targets. Such procedures shall be comparable, given
the difference between commercial and residential buildings,
to the requirements in the Mortgage Industry National
Accreditation Procedures for Home Energy Rating Systems.
``(C) Qualified individuals.--Individuals qualified to
determine compliance shall be only those individuals who are
recognized by an organization certified by the Secretary for
such purposes.
``(e) Basis Reduction.--For purposes of this subtitle, if a
deduction is allowed under this section with respect to any
energy efficient commercial building property, the basis of
such property shall be reduced by the amount of the deduction
so allowed.
``(f) Interim Rules for Lighting Systems.--Until such time
as the Secretary issues final regulations under subsection
(d)(1)(B) with respect to property which is part of a
lighting system--
``(1) In general.--The lighting system target under
subsection (d)(1)(A)(ii) shall be a reduction in lighting
power density of 25 percent (50 percent in the case of a
warehouse) of the minimum requirements in Table 9.3.1.1 or
Table 9.3.1.2 (not including additional interior lighting
power allowances) of Standard 90.1-2001.
``(2) Reduction in deduction if reduction less than 40
percent.--
``(A) In general.--If, with respect to the lighting system
of any building other than a warehouse, the reduction in
lighting power density of the lighting system is not at least
40 percent, only the applicable percentage of the amount of
deduction otherwise allowable under this section with respect
to such property shall be allowed.
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage is the number of percentage
points (not greater than 100) equal to the sum of--
``(i) 50, and
``(ii) the amount which bears the same ratio to 50 as the
excess of the reduction of lighting power density of the
lighting system over 25 percentage points bears to 15.
``(C) Exceptions.--This subsection shall not apply to any
system--
``(i) the controls and circuiting of which do not comply
fully with the mandatory and prescriptive requirements of
Standard 90.1-2001 and which do not include provision for
bilevel switching in all occupancies except hotel and motel
guest rooms, store rooms, restrooms, and public lobbies, or
``(ii) which does not meet the minimum requirements for
calculated lighting levels as set forth in the Illuminating
Engineering Society of North America Lighting Handbook,
Performance and Application, Ninth Edition, 2000.
``(g) Coordination With Other Tax Benefits.--
``(1) No double benefit.--No deduction shall be allowed
under subsection (a) with respect to any building for which a
credit under section 45K has been allowed.
``(2) Special rule with respect to buildings with energy
efficient property.--In any case in which a deduction under
section 200 or a credit under section 25C has been allowed
with respect to property in connection with a building, the
annual energy and power costs of the reference building
referred to in subsection (c)(1)(C) shall be determined
assuming such reference building contains the property for
which such deduction or credit has been allowed.
``(h) Regulations.--The Secretary shall promulgate such
regulations as necessary--
``(1) to take into account new technologies regarding
energy efficiency and renewable energy for purposes of
determining energy efficiency and savings under this section,
and
``(2) to provide for a recapture of the deduction allowed
under this section if the plan described in subsection
(c)(1)(C) or (d)(1)(A) is not fully implemented.
``(i) Termination.--This section shall not apply with
respect to property placed in service after December 31,
2010.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (34), by striking the period at the end of
paragraph (35) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(36) to the extent provided in section 179C(e).''.
(2) Section 1245(a) is amended by inserting ``179C,'' after
``179B,'' both places it appears in paragraphs (2)(C) and
(3)(C).
(3) Section 1250(b)(3) is amended by inserting before the
period at the end of the first sentence ``or by section
179C''.
(4) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (H), by striking the period at the end of
subparagraph (I) and inserting ``, or'', and by inserting
after subparagraph (I) the following new subparagraph:
``(J) expenditures for which a deduction is allowed under
section 179C.''.
(5) Section 312(k)(3)(B) is amended by striking ``section
179, 179A, or 179B'' each place it appears in the heading and
text and inserting ``section 179, 179A, 179B, or 179C''.
(c) Clerical Amendment.--The table of sections for part VI
of subchapter B of chapter 1 is amended by inserting after
section 179B the following new item:

``Sec. 179C. Energy efficient commercial buildings deduction.''.

(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.

SEC. 1320. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.

(a) In General.--Section 48(a)(3)(A) (defining energy
property), as amended by this title, is amended by striking
``or'' at the end of clause (ii), by inserting ``or'' at the
end of clause (iii), and by adding at the end the following:
``(iv) combined heat and power system property,''.
(b) Combined Heat and Power System Property.--Section 48
(relating to energy credit), as amended by this title, is
amended by adding at the end the following new subsection:
``(c) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(iv)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which has an electrical capacity of not more than 15
megawatts or a mechanical energy capacity of not more than
2,000 horsepower or an equivalent combination of electrical
and mechanical energy capacities,
``(C) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(D) the energy efficiency percentage of which exceeds 60
percent, and
``(E) which is placed in service before January 1, 2009.
``(2) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(C) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(D) Public utility property.--
``(i) Accounting rule for public utility property.--If the
combined heat and power system property is public utility
property (as defined in section 168(i)(10)), the taxpayer may
only claim the credit under subsection (a) if, with respect
to such property, the taxpayer uses a normalization method of
accounting.
``(ii) Certain exception not to apply.--The matter in
subsection (a)(3) which follows subparagraph (D) thereof
shall not apply to combined heat and power system property.
``(E) Nonapplication of certain rules.--For purposes of
determining if the term `combined heat and power system
property' includes technologies which generate electricity or
mechanical power using back-pressure steam turbines in place
of existing pressure-reducing valves or which make use of
waste heat from industrial processes such as by using organic
rankine, stirling, or kalina heat engine systems, paragraph
(1) shall be applied without regard to subparagraphs (A),
(C), and (D) thereof.
``(3) Systems using bagasse.--If a system is designed to
use bagasse for at least 90 percent of the energy source--
``(A) paragraph (1)(D) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such

[[Page H2360]]

system shall not exceed the amount which bears the same ratio
to such amount of credit (determined without regard to this
paragraph) as the energy efficiency percentage of such system
bears to 60 percent.
(c) Effective Date.--The amendments made by this subsection
shall apply to periods after December 31, 2005, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).

SEC. 1320A. EXTENSION THROUGH 2010 FOR PLACING QUALIFIED
FACILITIES IN SERVICE FOR PRODUCING RENEWABLE
ELECTRIC ENERGY.

(a) In General.--Subsection (d) of section 45 is amended by
striking ``January 1, 2006'' each place it appears and
inserting ``January 1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to property originally placed in service on or
after January 1, 2006.
At the end of title XIII, insert after subtitle C the
following new subtitle:

Subtitle D--Method of Accounting for Oil, Gas, and Primary Products
Thereof

SEC. 1331. PROHIBITION ON USING LAST IN, FIRST-OUT ACCOUNTING
FOR OIL, GAS, AND PRIMARY PRODUCTS THEREOF.

(a) In General.--Section 472 (relating to last-in, first-
out inventories) is amended by adding at the end the
following new subsection:
``(h) Oil and Gas.--Notwithstanding any other provision of
this section--
``(1) oil, gas, and any primary product of oil or gas,
shall be inventoried separately, and
``(2) a taxpayer may not use the method provided in
subsection (b) in inventorying oil, gas, and any primary
product of oil or gas.''.
(b) Effective Date and Special Rule.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by this section to
change its method of accounting for its first taxable year
beginning after the date of the enactment of this Act--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account
ratably over a period (not greater than 10 taxable years)
beginning with such first taxable year.

SEC. 1332. EMERGING TECHNOLOGIES TRUST FUND.

(a) In General.--Subchapter A of chapter 98 (relating to
trust fund code) is amended by adding at the end the
following new section:

``SEC. 9511. EMERGING TECHNOLOGIES TRUST FUND.

``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Emerging Technologies Trust Fund', consisting of such
amounts as may be appropriated or credited to such Trust Fund
as provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--
``(1) In general.--There are hereby appropriated to the
Emerging Technologies Trust Fund amounts equivalent to the
taxes received in the Treasury by reason of section 472(h)
(relating to prohibition on use of last-in, first-out
inventory accounting for oil and gas).
``(2) Limitation.--The amount appropriated to the Trust
Fund under paragraph (1) for any fiscal year shall not exceed
$5,000,000,000.
``(c) Expenditures.--Amounts in the Emerging Technologies
Trust Fund shall be available to the Secretary of Energy to
carry out a program to research and develop emerging
technologies for more efficient and renewable energy
sources.''.
(b) Clerical Amendment.--The table of sections for such
subchapter is amended by adding at the end thereof the
following new item:

``Sec. 9511. Emerging Technologies Trust Fund.''.

In title XIV, add at the end the following new sections:

SEC. 1452. SMALL BUSINESS COMMERCIALIZATION ASSISTANCE.

(a) Authority.--The Secretary of Energy shall provide
assistance, to small businesses with less than 100 employees
and startup companies, for the commercial application of
renewable energy and energy efficiency technologies developed
by or with support from the Department of Energy. Such
assistance shall be provided through a competitive review
process.
(b) Applications.--The Secretary of Energy shall establish
requirements for applications for assistance under this
section. Such applications shall contain a commercial
application plan, including a description of the financial,
business, and technical support (including support from
universities and national laboratories) the applicant
anticipates in its commercial application effort.
(c) Selection.--The Secretary of Energy shall select
applicants to receive assistance under this section on the
basis of which applications are the most likely to result in
commercial application of renewable energy and energy
efficiency technologies.
(d) Limit on Federal Funding.--The Secretary of Energy
shall provide under this section no more than 50 percent of
the costs of the project funded.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this section $200,000,000 for each of the fiscal years
2006 through 2010, and such sums as may be necessary for each
of the fiscal years 2011 through 2026.

SEC. 1453. SENSE OF THE CONGRESS.

It is the sense of the Congress that the President should
direct the Federal Trade Commission and Attorney General to
exercise vigorous oversight over the oil markets to protect
the American people from price gouging and unfair practices
at the gasoline pump.

SEC. 1454. TRANSPARENCY.

The Federal Trade Commission, in consultation with the
Secretary of Energy, shall issue regulations requiring full
disclosure by refiners and distributors of their wholesale
motor fuel pricing policies, with a separate listing of each
component contributing to prices, including the cost of crude
oil (with exploration, extraction, and transportation costs
shown separately if the refiner or distributor is also the
producer of the crude oil), refining, marketing,
transportation, equipment, overhead, and profit, along with
ption of any rebates, incentives, and market enhancement
allowances.
In title XVI, add at the end the following new section:

SEC. 1614. STUDY OF FINANCING FOR PROTOTYPE TECHNOLOGIES.

(a) Independent Assessment.--The Secretary of Energy shall
commission an independent assessment of innovative financing
techniques to facilitate construction of new renewable energy
and energy efficiency facilities that might not otherwise be
built in a competitive market.
(b) Conduct of the Assessment.--The Secretary of Energy
shall retain an independent contractor with proven expertise
in financing large capital projects or in financial services
consulting to conduct the assessment under this section.
(c) Content of the Assessment.--The assessment shall
include a comprehensive examination of all available
techniques to safeguard private investors against risks
(including both market-based and government-imposed risks)
that are beyond the control of the investors. Such techniques
may include Federal loan guarantees, Federal price
guarantees, special tax considerations, and direct Federal
investment.
(d) Report.--The Secretary of Energy shall submit the
results of the independent assessment to the Congress not
later than 9 months after the date of enactment of this
section.

The Acting CHAIRMAN. Pursuant to House Resolution 219, the gentleman
from New York (Mr. Bishop) and a Member opposed each will control 15
minutes.
The Chair recognizes the gentleman from New York (Mr. Bishop).
Mr. BISHOP of New York. Mr. Chairman, I yield 3 minutes to the
gentleman from Massachusetts (Mr. Markey), the cosponsor of this
amendment.
Mr. MARKEY. Mr. Chairman, I thank the gentleman from New York (Mr.
Bishop) for yielding me this time. I thank the gentleman from New York
for his leadership on this issue, and I am proud to follow his
leadership on this amendment.
Last Thursday, President Bush addressed the American Society of
Newspaper Editors. Here is what he said: ``I will tell you, with $55 a
barrel oil, we do not need incentives to oil and gas companies to
explore. There are plenty of incentives. What we need is to put a
strategy in place that will help this country over time become less
dependent. It is really important,'' said the President. ``It is an
important part of our economic security and it is an important part of
our national security.''
Those were the President's words last week. But the President then
went on to call upon Congress to pass the Republican energy bill, a
bill replete with a rich assortment of tax and deregulatory incentives
for the oil and gas companies to explore, even though they are
essentially already drowning in windfall profits. The price of oil has
doubled essentially from $25 a barrel to more than $50 a barrel. That
is all extra cash in the oil companies' pockets.
So the President, I think, has to rely upon his own Energy
Department, because his own Energy Department has acknowledged that
this bill that we are debating would result in only negligible changes
to overall demand, production, and imports, a bill that the Energy
Department acknowledges will actually increase gasoline prices at the
pump between 3.5 and 8 cents a gallon. The bill will increase the price
of gasoline.

[[Page H2361]]

{time} 1915

So even though the President says the oil companies do not need
incentives to drill when prices are so high, in this bill we are
providing more than $3 billion in tax incentives to Big Oil. This is
just at the point at which all of their profits are doubling. We are
giving them tax breaks. It is absolutely unbelievable.
So what the gentleman from New York (Mr. Bishop) has done is put out
a series of provisions. If Members do not want to support increasing
fuel economy standards for SUVs and automobiles so we can take on OPEC,
what we have is another series of alternatives that can be engaged in
which are much less Draconian, but will at least give us some
improvement in the way this country interrelates with gas, oil, and
other energy sources.
If Members feel that the Boehlert-Markey amendment is too radical,
this is your cup of tea. I thank the gentleman from New York (Mr.
Bishop) for his help on this amendment.
Mr. Chairman, I rise in support of the amendment offered by the
gentleman from New York (Mr. Bishop) and I am pleased to join as a
cosponsor of this amendment.
Last Thursday, the President addressed the American Society of
Newspaper Editors. He said:

I will tell you with $55 oil we don't need incentives to
oil and gas companies to explore. There are plenty of
incentives. What we need is to put a strategy in place that
will help this country over time become less dependent. It's
really important. It's an important part of our economic
security, and it's an important part of our national
security.

But the President then went on to call upon Congress to pass the
Republican energy bill--a bill replete with a rich assortment of tax
and deregulatory ``incentives'' for the oil and gas companies to
explore, a bill that the President's own Energy Department has
acknowledged would result in only ``negligible'' changes to overall
demand, production and imports, a bill that the Energy Department
acknowledges will actually increase gasoline prices at the pump by
between 3.5 and 8 cents a gallon. So, even though the President says
the oil companies don't need ``incentives'' to drill when prices are so
high, we are providing more than $3 billion in tax incentives to Big
Oil. We are giving them ``royalty relief'' so they don't have to pay
the public a fair price for drilling on public lands.
That is what H.R. 6 offers up as a solution to high oil and gasoline
prices. This bill says let's give more tax breaks to oil and gas
companies that even a President who was a former Texas oil man has said
are not needed. This bill says let's enact proposals that would
actullay increase the price that consumers pay to fill up their gas
tanks.
That is no solution.
The amendment being offered by the gentleman from New York and myself
takes a different approach.
While I continue to believe that the real solution to the current
high gas prices is increased efficiency, the House has already debated
that issue. This amendment says, if you aren't willing to take the step
of mandating higher fuel efficiency standards, are you at least will to
take some more modest steps?
On the issue of gas prices, our amendment says, when oil prices are
at record highs, let's stop filling the Strategic Petroleum Reserve.
Let's return to the principle of considering the impact of oil and gas
prices and the economy when we are making decisions about whether and
when to fill the Reserve. Are you at least willing to do that?
At the same time, our amendment expresses the Sense of Congress that
the Federal Trade Commission and the Justice Department should exercise
vigorous oversight of our Nation's oil and gas markets to guard against
price gouging or market manipulation. It expresses the Sense of
Congress that the President should put pressure on OPEC and non-OPEC
oil producers to increase oil production to help bring down prices. It
gives the FTC the power to require full disclosure by refiners and
distributors of fuel pricing policies, costs, and profits, so consumers
will be better able to determine whether the oil companies are
profiteering from the current volatility in oil markets. Are you at
least willing to do that?
Our amendment also would extend the renewable energy production tax
credit for 5 years, so that companies know that there will be
incentives out there to make the investment in building new solar,
wind, geothermal and biomass technologies, so we can become less
dependent on coal and natural gas to generate electricity.
Our amendment strikes the cap on Energy Savings Performance
Contracts, an important tool used by the Federal government to reduce
the amount of energy consumed in Federal buildings across the country.
Our amendment would put in place three additional appliance
efficiency standards--commercial packaged air conditioners and heat
pumps, residential dehumidifiers, and commercial spray valves used in
restaurants. In addition, under the amendment, efficiency standards for
residential and commercial furnaces and boilers, which have been
languishing over at the Energy Department for more than 10 years, would
be speeded up.
We would strike the Home Depot ceiling fan language that immediately
preempts state ceiling fan standards before there's even a Federal
standard in place.
We would provide a new 10 percent investment tax credit for high-
efficient combined heat and power systems.
We would provide a tax deduction for expenses needed to reduce energy
use of new and existing commercial buildings by 50 percent below model
commercial codes.
We would provide a tax credit for new homes that reduce energy costs
by 20-50 percent, and we'd provide a tax deduction for expenses needed
to cut energy use at new and existing commercial buildings.
We would provide for the creation of an Emerging Technology Trust
Fund to help develop emerging technologies for more efficient and
renewable energy sources, as well as a Small Business Commercialization
Program, to provide assistance for small businesses and start-up
companies trying to introduce alternative energy and efficiency
technologies into the marketplace.
Finally, our amendment includes the Dingell Democratic alternative
amendment on electricity, which would preserve the bill's mandatory
reliability provisions, but delete its proposed repeal of the Public
Utility Holding Company Act. The Dingell language would also give FERC
stronger legal authorities to police electricity and natural gas
markets for fraud.
The Bishop-Markey Democratic enbloc amendments make some modest but
useful steps toward making this energy bill a more a balanced bill and
a more consumer friendly bill. I urge my colleagues to vote for the
amendment.
Mr. BARTON of Texas. Mr. Chairman, I claim the time in opposition.
The Acting Chairman (Mr. Simpson). The Chair recognizes the gentleman
from Texas (Mr. Barton) for 15 minutes.
Mr. BARTON of Texas. Mr. Chairman, I yield myself such time as I may
consume.
On the Johnson amendment immediately prior, I was in mild opposition.
On this amendment, I want to be recorded in strong opposition.
Here is the amendment. It is 124 pages. It may be great. I do not
believe it is, but I have to stipulate it is possible. There has been
no hearing on this, no markup on this. Most of the amendments before
the body today, there may be a paragraph, a page, most of them are
amendments that were at least debated in one of the committees of
jurisdiction. This is a 124-page amendment which, I guess, Members
could say is a substitute for the entire bill. There are 50 pages of
efficient standards in this amendment.
Then there is the Dingell electricity substitute, which we have
already had a debate on earlier today, and then at the end there are
another 30 pages of tax credits. To top it off, we have some sort of a
scheme to fix the price of oil.
What is not in this amendment is anything that would increase
production, anything that addresses clean coal technology, I believe,
or hydrogen research or any of those things. Again, I will stipulate
this is probably a well-intentioned amendment. It is certainly
lengthily drafted, but I cannot conceive at this stage of the game
after all of the hearings and the markup and the amendments we have
already had in this Congress and the debate that went on in the prior
Congress, in the conference report that this House voted on two times,
that the House would accept this amendment.
With all due respect to the authors, I would urge a strong ``no''
vote on this on a bipartisan basis because I do not think this
amendment is right for inclusion or substitution for the underlying
bill.
Mr. Chairman, I reserve the balance of my time.
Mr. BISHOP of New York. Mr. Chairman, I yield myself 3 minutes.
I am pleased to offer the Bishop-Markey-McDermott en bloc amendment
this evening along with my colleagues. We have an opportunity within
our reach to make a real advancement in energy policy, but we are about
to do the unimaginable: pass an energy bill that will do nothing to
lower gas prices.
Let me say that again because I think it is important to our
constituents who are paying $2.25 or more for a

[[Page H2362]]

gallon of gas, this energy bill will not lower gas prices. In fact,
according to the Department of Energy, this bill may actually increase
future gas prices.
Fortunately, our amendment will help consumers see immediate relief
at the gas pump. The Bishop-Markey-McDermott amendment calls on the
President to immediately suspend deliveries to the Strategy Petroleum
Reserve until oil prices fall below $40 per barrel. When we have done
this in the past, the price of oil has dropped anywhere from $6 to $11
per barrel.
The United States should be the global leader in the development of
new and innovative technologies. This amendment will encourage the
growth of an energy-efficiency marketplace that fosters and incubates
new start-ups. This will not only lead to exciting new advances, it
will help create good-paying jobs for thousands of Americans.
Our amendment will create a $5 billion emerging-technology trust
fund, funding the technologies of the future rather than the further
counterproductive subsidies to the oil and gas industries provided for
in the underlying bill.
The Bishop-Markey-McDermott amendment would also offer grants to
States that meet new standards for efficiency in new building
development. Under our amendment, the renewable energy production tax
credit will be extended for 5 years. We will provide tax credits for
new homes that reduce energy use, as well as tax credits for new and
existing commercial buildings to reduce energy use; and we would also
offer an investment tax credit for the development of higher efficiency
heating and cooling systems.
In short, we offer tax cuts and credits that America will embrace and
at the same time create a cleaner and healthier environment for our
children. We will allow consumers to make more informed decisions about
energy-efficient appliances for their homes or businesses by adding
greater meaning to the Energy Star label by mandating that only the top
25 percent of products will carry that label. Currently, according to
the Alliance to Save Energy, approximately two-thirds of products are
eligible to wear the Energy Star label, rendering the distinction
almost meaningless.
Mr. Chairman, let us give Americans in the Northeast and on the West
Coast something to cheer about. America needs electricity reliability
and protection from fraud and blackouts. H.R. 6 would repeal the Public
Utility Holding Company Act. Our act would strike that provision. PUHCA
is the only line of defense for millions of taxpayers protecting them
from skyrocketing energy costs and greedy corporations. We should not
allow utility holding companies to use the profits obtained from their
regulated business activities squeezed from their captive rate-payers
and pour it down the sinkholes of unregulated businesses. PUHCA should
not be repealed; it should be applied appropriately and enforced.
Mr. Chairman, H.R. 6 is anti-taxpayer, anti-consumer, and anti-
environment. And I will say it again, it does nothing to lower gas
prices. We can do better. The Bishop-Markey-McDermott en bloc amendment
offers real incentives for energy efficiency and real relief at the
pump.
Mr. Chairman, I reserve the balance of my time.
Mr. BARTON of Texas. Mr. Chairman, I reserve the balance of my time.
Mr. BISHOP of New York. Mr. Chairman, I yield 3 minutes to the
gentleman from Washington (Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Mr. Chairman, the Republican energy bill is a license
to steal. It sanctions Big Oil's approach to America's energy crisis:
do nothing except count the monstrous profits. Profits may be up 400
percent, but this bill allows Big Oil to earn even more money to add to
their current $55 billion cash on hand. They will earn it at the pump,
and they will earn it at the Treasury Department.
An accounting gimmick allows Big Oil to escape paying anything close
to its fair share of taxes. That is the Republican way. The Democrats
propose, and I proposed in the Committee on Ways and Means, something
radically different in our alternative energy bill, actually paying for
it. Imagine that, a bill we paid for on the floor of this House.
We want to eliminate the provision called LIFO. It means last in
first out. You buy a barrel of oil at $20, and you buy a barrel 6
months later at $50. When you put it out, you use the $50 barrel. You
cut down the profits. Of course, that is what they do. That is the
American way of saying to Big Oil: pay now less, and then pay even less
later.
Democrats are proposing something else, investing in the 21st century
energy sources. We provide a tax credit for new homes that reduce
energy by at least 30 percent. That benefits Americans and encourages a
paradigm shift in thinking to produce energy by saving it. We will
establish an emergency technology trust fund. We want to harness the
power of our best minds to chart a course of energy independence.
We want to extend the renewable energy tax credit. America needs the
power of wind. My State is full of wind farms provided by Mother
Nature, and we can harness it. Democrats see America as strong and free
of an addiction to Big Oil. We are addicted to oil; and as long as we
remain addicted to oil, we are not going to get any better in this
whole area.
We see in America where people are not faced with choosing gasoline
over food. At $3 a gallon for gasoline, you are hitting pretty hard on
the food budget. Tonight is a defining moment. Republicans want
Americans firmly rooted in the past, relying on fuel sources that make
us vulnerable to too many foreign countries.
Democrats envision America firmly and finally looking to the future,
embracing a path to independence and freedom. Vote for America. Vote
for the Democratic alternative energy bill that takes this country
where it belongs, into the 21st century. Vote for the Bishop-Markey-
McDermott amendment.
Mr. BARTON of Texas. Mr. Chairman, I yield 4 minutes to the gentleman
from Louisiana (Mr. McCrery), a member of the Committee on Ways and
Means that has jurisdiction on tax issues.
Mr. McCRERY. Mr. Chairman, the previous speaker made some good
points. He talked about the need for our country to discover new
alternative sources of energy, and I think the gentleman is right. The
underlying bill under consideration has some incentives for developing
those new alternative sources of energy. Should we do more? Perhaps. I
think perhaps when we get the final bill out of conference with the
Senate, there may be more in the bill. But to rail against the oil and
gas industry, as the gentleman did, and the provisions in the
underlying bill that provide tax incentives for exploration and
development of our oil and gas reserves in this country, to me rings
empty because the substitute or the amendment that is before us that
the gentleman spoke in favor of does not strike any of those provisions
in the underlying bill.
All this amendment does is add new tax credits to the underlying
bill. So all of the rhetoric that we heard about the underlying bill is
just talk because this amendment does nothing to affect those
provisions the gentleman was speaking against.
What this amendment does do is basically double the cost of this
bill, at least the tax provisions in this bill. We have not had time,
and the chairman of the Committee on Energy and Commerce spoke about
the number of pages in this amendment, we have not had time, frankly,
to analyze it from a budgetary aspect to see if it violates the House
budget we have already passed. It very well could. But it takes the
cost of tax provisions in this bill from about $8 billion over 10 years
to about $17 billion over 10 years.
Now, the accounting gimmick, as the gentleman from Washington put it,
is called LIFO, last in first out. This is not an accounting principle
used just by the oil and gas industry. It is used by every sector of
our economy. It is in common usage, and there is a reason. The reason
is if we insisted on industry, of whatever kind, accounting for first
in first out, it would lead to distortions in the market, and it would
lead to business decisions based on tax

[[Page H2363]]

considerations instead of market considerations. Last in first out is
something commonly used throughout industry, not just the oil and gas
industry. They cannot game it. There are regulations in place to keep
them from shifting their inventory around to take advantage of the
accounting rule. So this is not something, some gimmick for the oil and
gas industry. It is a very sound accounting principle used throughout
industry in this country.
So I would urge this House not to listen to the words of the
gentleman, but look at the action embodied in the amendment. This
amendment does nothing to the underlying tax provisions in the bill. It
doubles the cost of the bill, and it would impose upon the oil and gas
industry, just one industrial sector in this country, a retroactive tax
increase because under his accounting change, those companies would
have to go back and recapture what they would have paid in taxes and
pay them prospectively over the next 10 years.
I hope we have concluded in this body that retroactive tax increases
are bad policy. So for that reason alone, I would recommend that we
reject this amendment.

{time} 1930

Mr. BISHOP of New York. Mr. Chairman, I yield 2 minutes to the
gentleman from Michigan (Mr. Stupak).
Mr. STUPAK. Mr. Chairman, I rise today in support of the Markey-
Bishop amendment. This amendment includes a provision that permanently
bans oil and gas drilling in and under our Great Lakes.
I offered this language as an amendment before the Committee on Rules
last night. However, the Committee on Rules Republican majority refused
to allow my bipartisan amendment to be considered on the floor despite
strong bipartisan support for it in the House and by the American
people.
The Great Lakes are one of our Nation's greatest natural resources
and are vital to more than 30 million Americans who rely upon them for
their drinking water. Understanding this, Congress has repeatedly
banned oil and gas drilling in and under the Great Lakes to protect
this vital resource. In 2001, the House voted overwhelmingly, 265-157,
in favor of instituting a ban.
Last week when the Committee on Energy and Commerce marked up this
legislation, I offered my amendment. Unfortunately, the gentleman from
Michigan (Mr. Rogers) undermined my amendment in favor of a watered-
down version. That amendment is included in the bill we find before us
today.
The Rogers amendment does nothing to stop drilling in the Great
Lakes. What the Rogers amendment does is leave drilling practices up to
the eight Great Lakes States and their legislatures. We could have
eight different policies on drilling in our lakes. Plus it is Congress
that regulates commerce amongst the several States, as is found in the
Constitution in the interstate commerce clause.
The Great Lakes already face a number of threats, invasive species
and contamination that leads to beach closures. Given these threats, it
makes no sense to further endanger the Great Lakes by opening them up
to oil and gas drilling.
The bottomlands of the Great Lakes will not provide enough oil or
natural gas to make even a small dent in the amount of America's energy
needs that are supplied by imported oil and natural gas. And an oil
spill on the shoreline can contaminate our groundwater.
Unfortunately, pollution knows no boundaries. When one or more of the
Great Lakes States does not have a ban and a blowout or a spill occurs,
those States, all of the States, may be forced to pay the public health
and environmental price.
The message is clear. Even an energy crisis is not enough to justify
threatening our Great Lakes, the world's largest body of fresh water,
to extract what industry experts agree will be a small amount of oil
and gas.
I ask that my colleagues approve this amendment to enact a permanent
ban on oil and gas drilling in and on the Great Lakes.
Mr. BARTON of Texas. Mr. Chairman, I yield myself such time as I may
consume. I would ask to engage in a dialogue with one of the authors of
the amendment, if they wish to do so.
I am not being facetious about this. I want to let the gentleman from
New York know right up front.
I have spent the last 10 minutes actually trying to look at the
amendment to try to get a sense of it. It appears to me that most of it
is the Dingell electricity substitute. Would the gentleman from New
York agree with that?
Mr. BISHOP of New York. Mr. Chairman, will the gentleman yield?
Mr. BARTON of Texas. I yield to the gentleman from New York.
Mr. BISHOP of New York. Yes, I would, Mr. Chairman.
Mr. BARTON of Texas. In the beginning, he has some efficiency
standards. He goes through and sets some specific standards on specific
appliances, dishwashers and things like this. But on page 21, there is
something beginning on line 16 that I just do not understand and I just
want to see.
The gentleman from New York may not understand it either, because he
may not have had much advance work in drafting this.
The heading is Administration, Penalties, Enforcement and Preemption.
It says, ``Section 345 of the Energy Policy and Conservation Act, 42
U.S. Code 6316, is amended by adding at the end the following.'' It
just goes down and says if a State wants to set up a specific standard,
that is fine, and that State standard will not be preempted until the
Federal standards established under this bill take effect on January 1,
2010. I understand that. He is saying the States can set a standard,
but once the standards in the bill kick in on January 1, 2010, the
Federal standard preempts. That is a policy debate; we can argue that
back and forth.
The next section, I do not understand, subparagraph 3, line 16:
``If the California Energy Commission adopts, not later than March
31, 2005, a regulation concerning the energy efficiency or energy
effective after, the standards established under section 342(a)(9) take
effect on January 1, 2010.''
What does that mean? While the gentleman is trying to get me an
answer, this is the kind of thing that if we had this in regular order
in a markup, there would be counsel at the desk and members of the
committee of jurisdiction would ask the counsel to explain it; and if
it is a drafting error, then that could be corrected. If it is not a
drafting error, then at least the members know. I am assuming that is a
drafting error, but it may not be.
Mr. BISHOP of New York. It is, in fact, a drafting error. These
efficiency standards were taken from the Senate bill from the 108th
Congress and it is a drafting error. The date needs to be updated.
Mr. BARTON of Texas. Then right underneath that, we are talking about
administration, penalties, enforcement and preemption on efficiency
standard for appliances. After that paragraph I just read, then you go
back and just out of the blue, it says, ``In determining whether to
defer such acquisition, the Secretary shall use market-based practices
when deciding to acquire petroleum for the Strategic Petroleum
Reserve.''
Again, I am going to assume that this was a cut-and-paste effort and
something got left out and that should be in another place. Am I
correct or incorrect on that?
Mr. BISHOP of New York. If the gentleman can just give me one second.
Mr. Chairman, I guess what I would say in response is that I
understand the questions that the gentleman from Texas is raising and I
understand, I guess, the consternation that he has with respect to
receiving such a lengthy amendment with little notice. I would only say
that the underlying bill is equally complex, equally dense, and that
there are sections of the underlying bill that were not subjected to
hearings, as well.
Mr. BARTON of Texas. I sincerely respect the intent of the authors of
the amendment. I am just trying to point out that even on a cursory
examination, there are things that were just kind of hastily put
together. They have not been vetted.
The underlying bill has been through countless hearings. The Energy
and Commerce markup took 3\1/2\ days. The base text is the conference
report from the last Congress that was extensively reviewed both inside
and out of the conference. At this stage of the game, to adopt this,
even as well intentioned

[[Page H2364]]

as it is, would not put the Congress in the best light. So I really
would hope that we would vote it down.
I do want to say one thing about the gentleman from Michigan's
amendment on Great Lakes drilling. He offered his amendment in
committee. We had a fair debate on it. It was rejected. I do not
remember the vote. It was a fairly close vote, but it was rejected.
Then we took a Rogers of Michigan amendment as a substitute that
gives the States the right to ban drilling if they wish. It is my
understanding, and I could be incorrect about this, that Michigan
wishes to ban drilling in the Great Lakes and Ohio perhaps does not. I
did not learn whether New York wanted to or did not want to. I think
that Canada does allow it.
But the base bill allows a State the right to ban drilling on their
portion of jurisdiction of the Great Lakes if they so wish.
Mr. STUPAK. Mr. Chairman, will the gentleman yield?
Mr. BARTON of Texas. I yield to the gentleman from Michigan.
Mr. STUPAK. Mr. Chairman, if the chairman would remember, he did
allow me to offer my amendment in committee, but before we had voted to
do a permanent ban, it was undermined by the Rogers amendment, which
basically says the same thing that it says in the body of the
underlying bill, which encourages States to enact a ban.
As the gentleman from Texas knows well, because we have several
States who deal with Lake Michigan and four of the five Great Lakes are
international borders, a ban, if it is going to come, a permanent ban,
which we seek, would have to be Federal legislation because of the
interstate commerce clause from which our committee gets its
jurisdiction. That is why we were very disappointed in that,
especially.
In fact, in 2001, we did have a moratorium on oil and gas drilling in
the Great Lakes, and it passed 265-157 with strong bipartisan support.
That is why we are disappointed that the Committee on Rules did not
make our amendment in order.
Mr. BARTON of Texas. If I could reclaim my time, the gentleman from
Michigan is a valued member of the committee and has several amendments
that were accepted, that are in the bill. I hope he is at least in a
quandary about maybe voting for the bill at some point in time,
although he has not yet done so.
But as he just pointed out on the underlying bill, we do encourage
States, I think the language is, encourages the States to have such a
ban, but we do not have the Federal preemptive ban that the gentleman
from Michigan wanted.
Mr. Chairman, in summary, I oppose this amendment. I think we have
pointed out a number of flaws in it. I would hope at the appropriate
time the body would vote it down.
Mr. Chairman, I yield back the balance of my time.
Mr. BISHOP of New York. Mr. Chairman, I yield 2 minutes to the
gentleman from Ohio (Mr. Kucinich).
Mr. KUCINICH. I thank the gentleman for yielding me this time.
Mr. Chairman, I want to concur with the gentleman from Michigan (Mr.
Stupak) who spoke in favor of a Federal ban on drilling for oil or gas
in the Great Lakes. I represent Cleveland, Ohio, which is a city proud
to be part of the Great Lakes community. We in Cleveland understand
that the Great Lakes contain 20 percent of the Earth's fresh water
surface and supplies drinking water for over 40 million people.
This is not a matter that any State can choose to go along with or
against. This is clearly an area for Federal policy. We need a Federal
policy which says the people of the United States have a right to clean
drinking water.
Water is the oil of the 21st century and we are here acting as though
it is not the basis of life on our planet.
The risks of drilling are clear. Because the geologic formations
under Lake Erie are low producing, the oil and gas industry would
require over 4,200 wells to access the full resource. In Canada, where
they permitted drilling, an average of almost one spill per month has
been documented. Now, the industry wants to use directional drilling to
create new risks. Geologists have noted that leaks will follow the
drilling shaft down into the groundwater which flows right into Lake
Erie.
This amendment, the Markey-Bishop amendment, is a common-sense way to
meet our energy needs, conservation, energy and renewables, and it is
also a common-sense way to protect the great water resource we have.
Why should we even be contesting this? Why would any State want to
take the responsibility of drilling in the Great Lakes and thus
poisoning the well for the rest of America?
This is Federal policy. We have a right to clean water. Support this
amendment.
Mr. BISHOP of New York. Mr. Chairman, I yield 1 minute to the
gentleman from Wisconsin (Mr. Kind).
Mr. KIND. Mr. Chairman, I thank my friend from New York for not only
offering the amendment, but providing a very important point in this
debate, and that is, unfortunately, the underlying bill is not going to
work because it lacks one crucial element, and that is vision, the
vision to see that we need to pivot off the status quo of the current
energy policy and move to a new energy plan that makes sense for a new
century.
The fact of the matter is, and the dirty little secret in this place,
those involved in energy policy have to admit it, is that no matter how
many incentives we give to the oil companies, how many royalty relief
provisions are loaded in this bill, even though the President who comes
from the oil industry says that it is not necessary, given the high
price of oil, is that we cannot produce our way out of the energy
challenge that we are facing in this century.
We are already in a race against China and India for the limited oil
supplies that exist throughout the world. This amendment provides the
vision for us to start pivoting off from our dependence on fossil fuels
generally, but the importation of oil more specifically, by providing
incentives for alternative and renewable energy sources, incentives for
increased energy efficiency and conservation practices and, hopefully,
the incentive to move to a new energy source for a new century, and
that is fuel cell development.
I would encourage my colleagues to adopt this amendment.
Mr. BISHOP of New York. Mr. Chairman, I yield 1 minute to the
gentleman from New York (Mr. Engel).
Mr. ENGEL. Mr. Chairman, I thank the gentleman from New York for
yielding me this time and I rise in strong support of the Bishop-Markey
substitute.
This amendment contains a number of provisions designed to reduce
dependence on nonrenewable energy sources. It is ridiculous that H.R. 6
really offers no relief to the soaring prices of gasoline. I think that
is what our constituents really want to see.
The administration's own Energy Information Administration analyzed
last year's H.R. 6 and said, changes to production, consumption,
imports and prices in it are negligible. It even found that gasoline
prices under the bill would actually increase more than if a bill was
not enacted.
The Bishop-Markey amendment offers clear measures to lower the price
of gas. We should not be filling the Strategic Petroleum Reserve while
oil prices are so high. We should urge OPEC to increase oil production.
We should instruct the FTC to protect the American people from price
gouging at the gas pump. These are reasonable steps. This is what this
substitute does. And it will provide reasonable relief from high gas
prices.

{time} 1945

I cannot support H.R. 6 as it is written today despite my great
affection for our chairman, who was more than fair when we had the
markup in the Committee on Energy and Commerce; but this Bishop-Markey
amendment would provide critical improvements to it.
Support this amendment today.
The Acting CHAIRMAN (Mr. Simpson). The question is on the amendment
offered by the gentleman from New York (Mr. Bishop).
The question was taken; and the Acting Chairman announced that the
noes appeared to have it.
Mr. BISHOP of New York. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from New York
(Mr. Bishop) will be postponed.

[[Page H2365]]

It is now in order to consider amendment No. 8 printed in House
Report 109-49.

Amendment No. 8 Offered by Ms. Slaughter

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

Amendment No. 8 offered by Ms. Slaughter:
In title I, subtitle C, add at the end the following new
section:

SEC. 135. INTERMITTENT ESCALATORS.

Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended by adding at the end the
following new subsection:
``(e) Intermittent Escalators.--
``(1) Requirement.--Except as provided in paragraph (2),
any escalator acquired for installation in a Federal building
shall be an intermittent escalator.
``(2) Exception.--Paragraph (1) shall not apply at a
location outside the United States where the Federal agency
determines that to acquire an intermittent escalator would
require substantially greater cost to the Government over the
life of the escalator.
``(3) Additional energy conservation measures.--In addition
to complying with paragraph (1), Federal agencies shall
incorporate other escalator energy conservation measures, as
appropriate.
``(4) Definition.--For purposes of this subsection, the
term `intermittent escalator' means an escalator that remains
in a stationary position until it automatically operates at
the approach of a passenger, returning to a stationary
position after the passenger completes passage.''.

The Acting CHAIRMAN. Pursuant to House Resolution 219, the
gentlewoman from New York (Ms. Slaughter) and the gentleman from Texas
(Mr. Barton) each will control 5 minutes.
The Chair recognizes the gentlewoman from New York (Ms. Slaughter).
Ms. SLAUGHTER. Mr. Chairman, I yield myself such time as I may
consume.
In 1998 Congress set a goal for 2005 to improve the energy efficiency
in congressional buildings by 20 percent. And I know that the Architect
of the Capitol has been working very hard to reach the goal. However,
we have not. Yet the skyrocketing gasoline prices remind us that we
must do more for conservation.
I am disappointed that the underlying legislation gives 94 percent of
its benefits to the oil and gas industry and only 6 percent to
conservation and renewable efforts.
My amendment, I think, is a good start at least on some conservation.
It would simply require that any new escalator being installed in
Federal buildings to be an intermittent escalator. These have been in
use in Europe for 30 or 40 years; and I know that when I first saw one,
I could hardly believe it. It does not begin until the passenger steps
on a pad entering into the escalator and stops when the passengers are
off. We would save about 40 percent of the fuel costs, the electricity
costs, the energy costs. But in addition to that, what we would save
simply on the wear and tear, the pure mechanics of the escalator,
probably would be even higher than the energy savings.
Mr. Chairman, the traditional escalators are used more than 90
billion times a year in the United States; and with more than 30,000 of
them across the country, escalators move more people than airplanes.
And since almost all of them are out of order a good percentage of the
time, we know that it is important that we do something to conserve
that kind of money and the investment we have made in the escalators.
As I pointed out, the amount of energy consumed is estimated to be
260 million kilowatts an hour, which we would save a cost to the
Nation, if all of them were intermittent, of $260 million a year.
I want to quote an analyst at Lawrence Livermore National Laboratory.
The intermittent escalators, says Lawrence Livermore, are 40 to 50
percent more energy efficient than traditional escalators. This was
borne out by a case study supplied to me from the German Embassy, which
found 40 percent savings in Germany. Energy can be particularly saved
when the escalator is used only during rush hours.
Replacing all of them would save us an awful lot of money, but this
bill does not replace them all. It simply requires that new escalators
be of the intermittent variety. And I strongly hope that we will accept
this amendment this evening as part of this energy bill.
Mr. Chairman, I reserve the balance of my time.
Mr. BARTON of Texas. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I rise to qualify in opposition. And I say ``qualify''
because when I looked at the amendment several days ago, it appeared to
me to be a reasonable amendment. Since the gentlewoman was born in
Texas, it gave me another reason to say yes. And since she is a member
of the Committee on Rules and every now and then I will need a vote
from the minority on the Committee on Rules, there was another reason.
So we had lots of reasons to say yes, and so we did say yes.
Then we found out that the gentleman from Alaska (Mr. Young), the
chairman of Committee on Transportation and Infrastructure, had some
concerns about it, and the General Services Administration had some
concerns about it. And the concern is that these intermittent
escalators sometimes cause a safety problem because they start and stop
too soon and they apparently break down more frequently than
continuous-operation escalators.
So here is my proposal to the gentlewoman: I am willing to accept it
with the understanding that we are going to work with the General
Services Administration and the gentleman from Alaska (Chairman Young)
to see if there is a meeting of the minds between now and conference.
We will go into the base bill. It will be a House position when we go
to conference. But if for some reason we cannot satisfy these safety
concerns, since I am probably going to be the chairman of the
conference, I would reserve the right to drop it in conference after
consultation with the gentlewoman if we cannot work out some of these
concerns. But for tonight we would take it.
Mr. Chairman, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Chairman, I yield myself such time as I may
consume.
I thank the gentleman very much for his support. I appreciate that.
And if it is all right with the chairman, I will inundate him with that
information between now and then.
Mr. Chairman, I yield back the balance of my time.
Mr. BARTON of Texas. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, with that reservation, the majority accepts the
gentlewoman's amendment and urges a mild ``yes'' vote.
Mr. Chairman, I yield back the balance of my time.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentlewoman from New York (Ms. Slaughter).
The amendment was agreed to.
The Acting CHAIRMAN. It is now in order to consider amendment No. 9
printed in House Report 109-49.
It is now in order to consider amendment No. 10 printed in House
Report 109-49.
Mr. BARTON of Texas. Mr. Chairman, I ask unanimous consent, on the
Oberstar amendment, even though he is not here, that the gentleman from
Michigan (Mr. Dingell) be allowed to offer it, and if he will on the
gentleman from Minnesota's (Mr. Oberstar) behalf, I will accept it.
The Acting CHAIRMAN. Is there objection to the request of the
gentleman from Texas?
There was no objection.

Amendment No. 10 Offered by Mr. Dingell

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

Amendment No. 10 offered by Mr. Dingell:
At the end of subtitle A of title II, add the following
(and conform the table of contents accordingly):

SEC. 209. INSTALLATION OF PHOTOVOLTAIC SYSTEM.

There is authorized to be appropriated to the General
Services Administration to install a photovoltaic system, as
set forth in the Sun Wall Design Project, for the
headquarters building of the Department of Energy located at
1000 Independence Avenue Southwest in the District of
Columbia, commonly know as the Forrestal Building,
$20,000,000 for fiscal year 2006. Such sums shall remain
available until expended.

[[Page H2366]]

The Acting CHAIRMAN. Pursuant to House Resolution 219, the gentleman
from Michigan (Mr. Dingell) and a Member opposed each will each control
5 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Dingell).
Mr. DINGELL. Mr. Chairman, I yield myself such time as I may consume.
Under the unanimous consent request, I assume, then, that I have
offered it; and I yield to the gentleman from the great State of Texas
(Mr. Barton).
Mr. BARTON of Texas. Mr. Chairman, I thank the gentleman for yielding
to me. And I would simply say that the gentleman from Minnesota (Mr.
Oberstar), the ranking member on the Committee on Transportation and
Infrastructure, has offered an amendment that would authorize $20
million for the administrator of General Services Administration to
proceed with the Sun Wall design project, and the majority is prepared
to accept it and work with the gentleman from Michigan (Mr. Dingell)
and the gentleman from Minnesota (Mr. Oberstar) to maintain it in
conference with the Senate.
I urge a ``yes'' vote.
Mr. DINGELL. Mr. Chairman, reclaiming my time and continuing my
comments, I rejoice that the gentleman has accepted it. I commend him
for having done so.
(Mr. OBERSTAR asked and was given permission to revise and extend his
remarks.)
Mr. OBERSTAR. Mr. Chairman, I rise to express my appreciation to the
gentleman from Michigan for offering the amendment I had planned to and
was designated to offer, and to the gentleman from Texas for accepting
the amendment.
Mr. Chairman, I rise in support of the Oberstar-Norton amendment. The
amendment authorizes the Administrator of the General Services
Administration to install a photovoltaic solar energy system
(photovoltaics) in accordance with the Sun Wall Design Project on the
Forrestal Building, the headquarters building of the Department of
Energy located on Independence Avenue in Washington, D.C.
The Sun Wall is an engineering and architectural marvel; 24,750
square feet of power generating panels installed on the building's
south facing wall. It is also visually exciting, reaching 300 feet wide
and 130 feet high. In fact, the Sun Wall design was selected as the
winning design in an national contest sponsored jointly by the
Department of Energy and the National Renewable Fuels Laboratory. The
project design was completed 5 years ago, in 2000. The project design
is ready to go. All that is left to do is provide funding for the
project so that construction of the Sun Wall can begin.
With ever rising oil prices and our country's ever-increasing
dependence on oil, the time has come for the federal government to get
serious about alternative, renewable fuels. In fact, the time is long
past overdue. The federal government is the Nation's largest energy
consumer, a typical office building is estimated to spend one-third of
its operating expenses on energy costs. Using alternative sources of
energy will help us reduce these costs.
Photovoltaics are a proven, reliable source of energy. Simply put,
photovoltaic systems convert solar energy into electricity. They not
only reduce the consumption of fossil fuels, but they are highly
efficient and have no moving parts, so the need for maintenance is
virtually non-existent. Because they emit no harmful pollutants, they
are a clean, environmentally-friendly energy source.
H.R. 6 does include provisions aimed at increasing energy efficiency
in our public buildings. I am especially pleased to see in the bill
section 205 (regarding the procurement and installation of
photovoltaics in federal buildings generally), which I offered, and
which was accepted, as an amendment during consideration of the energy
bill last Congress.
Over 25 Federal buildings throughout the country, from Boston,
Massachusetts to San Francisco, California, already use photovoltaics
to great effect. We ought to add the national headquarters of the
Department of Energy to that list.
The Sun Wall Project is an opportunity to have the Department of
Energy Headquarters building in our Nation's capital--the building
where energy policy is debated and refined--stand as a testament to the
utility and promise of photovoltaics. In a city of monuments, the Sun
Wall Project would be a monument to America's commitment to advanced
technologies, alternative energy and a cleaner environment.
I urge my colleagues to support the amendment.
Mr. DINGELL. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from Michigan (Mr. Dingell).
The amendment was agreed to.

Request to Offer Amendment No. 9

Mr. WAXMAN. Mr. Chairman, I have an amendment at the desk, and I ask
unanimous consent to be able to go back to that amendment.
Mr. BARTON of Texas. Mr. Chairman, I reserve the right to object, and
I will not object.
The Acting CHAIRMAN. The gentleman will have to offer his amendment
in the full House. We cannot go back to the amendment.
Mr. BARTON of Texas. Mr. Chairman, I reserve the right to object.
The Acting CHAIRMAN. The Chair is not entertaining the motion because
we cannot go back to the amendment.

Parliamentary Inquiry

Mr. BARTON of Texas. Mr. Chairman, parliamentary inquiry.
The Acting CHAIRMAN. The gentleman may inquire.
Mr. BARTON of Texas. Mr. Chairman, since the gentleman from
California is a member of the committee of jurisdiction and since he
offered this in committee and it was made in order by the Committee on
Rules to be offered, even though he was somewhat tardy in arriving,
would a unanimous consent request, if made and not objected to, give
him the right to offer the amendment now?
The Acting CHAIRMAN. Such a request may only be entertained in the
full House.
Mr. BARTON of Texas. Mr. Chairman, I move that the Committee do now
rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Flake) having assumed the chair, Mr. Simpson, Acting Chairman of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 6) to
ensure jobs for our future with secure, affordable, and reliable
energy, had come to no resolution thereon.

____________________