[Congressional Record Volume 151, Number 83 (Tuesday, June 21, 2005)]
[Senate]
[Pages S6934-S6977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 809. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 37, between the matter following line 12 and 13, 
     insert the following:

     SEC. 109. MANHATTAN PROJECT FOR ENERGY INDEPENDENCE.

       (a) Findings.--Congress finds that--
       (1) the welfare and security of the United States require 
     that adequate provision be made for activities relating to 
     the development of energy-efficient technologies; and
       (2) those activities should be the responsibility of, and 
     should be directed by, an independent establishment 
     exercising control over activities relating to the 
     development and promotion of energy-efficient technologies 
     sponsored by the United States.
       (b) Purpose.--The purpose of this section is to establish 
     the Energy Efficiency Development Administration to develop 
     technologies to increase energy efficiency and to reduce the 
     demand for energy.
       (c) Definitions.--In this section:
       (1) Administration.--The term ``Administration'' means the 
     Energy Efficiency Development Administration established by 
     subsection (d)(1).
       (2) Administrator.--The term ``Administrator'' means the 
     head of the Administration appointed under subsection 
     (d)(3)(A).
       (3) Advisory committee.--The term ``Advisory Committee'' 
     means the Policy Advisory Committee established by subsection 
     (f)(1)(A).
       (4) Energy-efficient technology activity.--
       (A) In general.--The term ``energy-efficient technology 
     activity'' means an activity that improves the energy 
     efficiency of any sector of the economy, including the 
     transportation, building design, electrical generation, 
     appliance, and power transmission sectors.
       (B) Inclusion.--The term ``energy-efficient technology 
     activity'' includes an activity that produces energy from a 
     sustainable biomass, wind, small-scale hydroelectric, solar, 
     geothermal, or other renewable source.
       (d) Energy Efficiency Development Administration.--
       (1) Establishment.--There is established as an independent 
     establishment in the executive branch the Energy Efficiency 
     Development Administration.
       (2) Mission.--The mission of the Administration shall be to 
     reduce United States imports of oil by--
       (A) 5 percent by 2008;
       (B) 20 percent by 2011; and
       (C) 50 percent by 2015.
       (3) Administrator; deputy administrator.--
       (A) Administrator.--
       (i) Appointment.--The Administration shall be headed by an 
     Administrator, who shall be appointed by the President, by 
     and with the advice and consent of the Senate.
       (ii) Pay.--Section 5313 of title 5, United States Code, is 
     amended by adding at the end the following:
       ``Administrator, Energy Efficiency Development 
     Administration.''.
       (iii) Duties.--The Administrator shall--

       (I) exercise all powers and perform all duties of the 
     Administration; and
       (II) have authority over all personnel and activities of 
     the Administration.

       (iv) Limitation on rulemaking authority.--The Administrator 
     shall not modify any energy-efficiency standards or related 
     standards in effect on the date of enactment of this Act that 
     would result in the reduction of energy efficiency in any 
     product.
       (B) Deputy administrator.--
       (i) Appointment.--There shall be in the Administration a 
     Deputy Administrator, who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (ii) Pay.--Section 5314 of title 5, United States Code, is 
     amended by adding at the end the following:
       ``Deputy Administrator, Energy Efficiency Development 
     Administration.''.
       (iii) Duties.--The Deputy Administrator shall--

       (I) supervise the project development and engineering 
     activities of the Administration;
       (II) exercise such other powers and perform such duties as 
     the Administrator may prescribe; and
       (III) act for, and exercise the powers of, the 
     Administrator during the absence or disability of the 
     Administrator.

       (4) Transfer of functions.--
       (A) Definition of function.--In this paragraph, the term 
     ``function'' means any duty, obligation, power, authority, 
     responsibility, right, privilege, activity, or program.
       (B) Transfer of functions.--
       (i) In general.--There are transferred to the 
     Administrator--

[[Page S6935]]

       (I) all functions previously exercised by the Assistant 
     Secretary of Energy for Efficiency and Renewable Energy; and
       (II) any authority to promulgate regulations relating to 
     fuel efficiency previously exercised by the Secretary of 
     Transportation.

       (ii) Inclusions.--Functions transferred under clause (i) 
     include all real and personal property, personnel funds, and 
     records of the Office of Energy Efficiency and Renewable 
     Energy of the Department of Energy.
       (iii) Determination of functions.--The Director of the 
     Office of Management and Budget shall determine the functions 
     that are transferred under clause (i).
       (C) Presidential transfers.--
       (i) In general.--The President, until the date that is 4 
     years after the date of enactment of this Act, may transfer 
     to the Administrator--

       (I) any function of any other department or agency of the 
     United States, or of any officer or organizational entity of 
     any department or agency, that relates primarily to the 
     duties of the Administrator under this section; and
       (II) any records, property, personnel, and funds that are 
     necessary to carry out that function.

       (ii) Reports.--The President shall submit to Congress a 
     report that describes the nature and effect of any transfer 
     made under clause (i).
       (D) Abolishment of office.--The Office of Energy Efficiency 
     and Renewable Energy of the Department of Energy is 
     abolished.
       (5) Duties.--
       (A) In general.--The Administrator shall--
       (i) plan, direct, and conduct energy-efficient technology 
     activities; and
       (ii) provide for the widest appropriate dissemination of 
     information concerning the activities of the Administration 
     and the results of those activities.
       (B) Objectives.--The energy-efficient technology activities 
     of the United States carried out from the Administrator or 
     carried out with financial assistance by the Administrator 
     shall be conducted so as to contribute significantly to 1 or 
     more of the following objectives:
       (i) Expansion of knowledge about energy-efficient 
     technologies and the use of those technologies.
       (ii) Improvement of existing energy-efficient technologies 
     or development of new energy-efficient technologies.
       (iii) Identification of mechanisms to introduce energy-
     efficient technologies into the marketplace.
       (iv) Conduct of studies of--

       (I) the potential benefits gained, such as environmental 
     protection, increasing energy independence, and reducing 
     costs to consumers; and
       (II) the problems involved in the development and use of 
     energy-efficient technologies.

       (v) The most effective use of the scientific resources of 
     the United States, with close cooperation among all 
     interested agencies of the United States so as to avoid 
     duplication of effort, facilities, and equipment.
       (e) Powers.--The Administrator shall--
       (1) not later than 180 days after the date of enactment of 
     this Act, submit to Congress a personnel plan for the 
     Administration that--
       (A) specifies the initial number and qualifications of 
     employees needed for the Administration;
       (B) describes the functions and General Service 
     classification and pay rates of the initial employees; and
       (C) specifies how the Administrator will adhere to or 
     deviate from the civil service system;
       (2) appoint and fix the compensation of such officers and 
     employees as are necessary to carry out the functions of the 
     Administration;
       (3) establish the entrance grade for scientific personnel 
     without previous service in the Federal Government at a level 
     up to 2 grades higher than the grade provided for such 
     personnel in the General Schedule (within the meaning of 
     section 5104 of title 5, United States Code) and fix the 
     compensation of the personnel accordingly, as the 
     Administrator considers necessary to recruit specially 
     qualified scientific, environmental, and industry-related 
     expertise;
       (4) acquire, construct, improve, repair, operate, and 
     maintain such laboratories, research and testing sites and 
     facilities, and such other real and personal property or 
     interests in real and personal property, as the Administrator 
     determines to be necessary for the performance of the 
     functions of the Administration;
       (5) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary in the performance of the duties of the 
     Administrator with any--
       (A) agency or instrumentality of the United States;
       (B) State, Territory, or possession;
       (C) political subdivision of any State, Territory, or 
     possession; or
       (D) person, firm, association, corporation, or educational 
     institution;
       (6)(A) with the consent of Federal and other agencies, with 
     or without reimbursement, use the services, equipment, 
     personnel, and facilities of those agencies; and
       (B) cooperate with other public and private agencies and 
     instrumentalities in the use of services, equipment, 
     personnel, and facilities; and
       (7) establish within the Administration such offices and 
     procedures as the Administrator considers appropriate to 
     provide for the greatest possible coordination of the 
     activities of the Administration with related scientific and 
     other activities of other public and private agencies and 
     organizations.
       (f) Organizational Structure.--
       (1) Policy advisory committee.--
       (A) Establishment.--There is established in the 
     Administration a Policy Advisory Committee.
       (B) Membership.--
       (i) Composition.--The Advisory Committee shall be composed 
     of 12 members, of whom--

       (I) 4 members shall be representatives of the energy 
     efficiency and environmental protection community;
       (II) 4 members shall be representatives of--

       (aa) industries involved in the generation, transmission, 
     or distribution of energy products; or
       (bb) the transportation industry; and

       (III) 4 members shall be representatives of the scientific 
     and university research community.

       (ii) Appointment.--The Speaker of the House of 
     Representatives, the majority leader of the Senate, the 
     minority leader of the House of Representatives, and the 
     minority leader of the Senate shall each appoint 1 member 
     described in subclauses (I), (II), and (III) of clause (i).
       (C) Duties.--The Advisory Committee shall--
       (i) act as a steering committee for the Administration; and
       (ii) formulate a long-term strategy for--

       (I) achieving the mission of the Administration under 
     subsection (d)(2); and
       (II) identifying energy-efficient technologies and 
     initiatives that--

       (aa) have the potential to increase energy efficiency over 
     the long term; and
       (bb) should be further explored by the Administration.
       (D) Staff.--The Advisory Committee may appoint not more 
     than 24 employees to assist in carrying out the duties of the 
     Advisory Committee, of whom--
       (i) 8 shall report to the members appointed under 
     subparagraph (B)(i)(I);
       (ii) 8 shall report to the members appointed under 
     subparagraph (B)(i)(II); and
       (iii) 8 shall report to the members appointed under 
     subparagraph (B)(i)(III).
       (E) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
     App.) shall apply to the Advisory Committee.
       (2) Office of administration.--
       (A) Establishment.--There is established in the 
     Administration an Office of Administration.
       (B) Assistant deputy administrator.--The head of the Office 
     of Administration shall be an Assistant Deputy Administrator 
     for Administration, to be appointed by the Administrator.
       (C) Public information division.--
       (i) Establishment.--There is established in the Office of 
     Administration a Public Information Division.
       (ii) Duties.--The Public Information Division shall serve 
     as a liaison between the Administration, the public, and 
     other entities.
       (D) Energy efficiency economics division.--
       (i) Establishment.--There is established in the Office of 
     Administration an Energy Efficiency Economics Division.
       (ii) Staff.--The Energy Efficiency Economics Division shall 
     be composed of economists and individuals with expertise in 
     energy markets, consumer behavior, and the economic impacts 
     of energy policy
       (iii) Duties.--The Energy Efficiency Economics Division 
     shall study the effects of existing and proposed energy-
     efficient technologies on the economy of the United States, 
     with an emphasis on assessing--

       (I) the impacts of those technologies on consumers; and
       (II) the contributions of those technologies on the 
     economic development of the United States.

       (E) Incentives division.--
       (i) Establishment.--There is established in the Office of 
     Administration an Incentives Division.
       (ii) Duties.--The Incentives Division shall--

       (I) conduct a study of economic incentives that would 
     assist the Administration in--

       (aa) developing energy-efficient technologies; and
       (bb) introducing those technologies into the marketplace; 
     and

       (II) submit to Congress a report on the results of the 
     study conducted under subclause (I).

       (F) Education division.--
       (i) Establishment.--There is established in the Office of 
     Administration an Education Division.
       (ii) Duties.--The Education Division shall provide--

       (I) to the public, information concerning--

       (aa) how to conserve energy, including--
       (AA) what type of products are energy-efficient; and
       (BB) where such products may be purchased; and
       (bb) the importance of conserving energy; and

       (II) provide to building owners, engineers, contractors, 
     and other businesspersons training in energy-efficient 
     technologies.

       (G) Legislative counsel division.--There is established in 
     the Office of Administration a Legislative Counsel Division 
     to provide legal assistance to the Administrator.

[[Page S6936]]

       (3) Office of policy, research, and development.--
       (A) Establishment.--There is established in the 
     Administration an Office of Policy, Research, and Development 
     to establish the organizational structure of the 
     Administration relating to the project development and 
     engineering activities of the Administration.
       (B) Assistant deputy administrator.--The head of the Office 
     of Policy, Research, and Development shall be an Assistant 
     Deputy Administrator for Policy, Research, and Development, 
     to be appointed by the Administrator.
       (C) Powers.--In establishing the organizational structure 
     under subparagraph (A), the Office of Policy, Research, and 
     Development may--
       (i) incorporate a flat organizational structure comprised 
     of project-based teams;
       (ii) focus on accelerating the development of energy-
     efficient technologies during the period from fundamental 
     research to implementation;
       (iii) coordinate with the private sector; and
       (iv) adopt organizational models used by other Federal 
     agencies conducting advanced research.
       (4) Office of venture capital.--
       (A) Establishment.--There is established in the 
     Administration an Office of Venture Capital.
       (B) Assistant deputy administrator.--The head of the Office 
     of Venture Capital shall be an Assistant Deputy Administrator 
     for Venture Capital, to be appointed by the Administrator.
       (C) Duties.--The Office of Venture Capital shall--
       (i) accept applications from companies requesting financial 
     assistance for energy-efficient technology proposals;
       (ii) accept recommendations and input from the Deputy 
     Administrator and the Policy Advisory Committee on 
     applications submitted under clause (i); and
       (iii) from among the applications submitted under clause 
     (i), award financial assistance to applicants to carry out 
     the proposals that are most likely to improve energy 
     efficiency.
       (g) Initial Technology Solicitations.--
       (1) In general.--The Administrator may, based on the 
     criteria described in paragraph (2), initiate the development 
     of technologies for--
       (A) fuel-efficient tires;
       (B) construction of a hydrogen infrastructure;
       (C) high-temperature superconducting cable;
       (D) improved switches, resistors, capacitors, software and 
     smart meters for electrical transmission systems;
       (E) combined heat and power;
       (F) micro turbines;
       (G) fuel cells;
       (H) energy-efficient lighting;
       (I) energy efficiency training for building contractors;
       (J) retrofitting or rehabilitation of existing structures 
     to incorporate energy-efficient technologies; and
       (K) efficient micro-channel heat exchangers.
       (2) Criteria.--In determining which technologies to develop 
     under paragraph (1), the Administrator shall consider--
       (A) the current status of development of the technology;
       (B) the potential for widespread use of the technology in 
     commercial markets;
       (C) the time and costs of efforts needed to bring the 
     technology to full implementation; and
       (D) the potential of the technology to contribute to the 
     goals of the Administration.
       (3) Report.--As soon as practicable after the date of 
     enactment of this Act, but not later than 1 year after the 
     date of enactment of this Act, the Administrator shall submit 
     to Congress a report that--
       (A) assesses the potential for the technologies described 
     in paragraph (1) to contribute to the goals of the 
     Administration; and
       (B) describes the plans of the Administration to develop 
     the technologies under paragraph (1).
       (h) Reports.--
       (1) By the administrator.--Semiannually and at such other 
     times as the Administrator considers appropriate, the 
     Administrator shall submit to the President a report that 
     describes the activities and accomplishments of the 
     Administration.
       (2) By the president.--In January of each year, the 
     President shall submit to Congress a report that includes--
       (A) a description of the activities and accomplishments of 
     all agencies of the United States in the field of energy 
     efficiency during the preceding calendar year;
       (B) an evaluation of the activities and accomplishments of 
     the Administrator in attaining the objectives of this 
     section; and
       (C) such recommendations for additional legislation as the 
     Administrator or the President considers appropriate for the 
     attainment of the objectives described in this section.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $5,000,000,000 for fiscal year 2006;
       (2) $6,000,000,000 for fiscal year 2007;
       (3) $7,500,000,000 for each of fiscal years 2008 and 2009;
       (4) $9,000,000,000 for each of fiscal years 2010 and 2010; 
     and
       (5) $10,000,000,000 for each of fiscal years 2011 through 
     2016.
                                 ______
                                 
  SA 810. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       Beginning on page 395, strike line 3 and all that follows 
     through page 401, line 25.
                                 ______
                                 
  SA 811. Mr. SCHUMER (for himself, Ms. Cantwell, and Mr. Lautenberg) 
submitted an amendment intended to be proposed by him to the bill H.R. 
6, to ensure jobs for our future with secure, affordable, and reliable 
energy; which was ordered to lie on the table; as follows:

       On page 120, between lines 20 and 21, insert the following:

     SEC. 142. MOTOR VEHICLE TIRES SUPPORTING MAXIMUM FUEL 
                   EFFICIENCY.

       (a) Standards for Tires Manufactured for Interstate 
     Commerce.--Section 30123 of title 49, United States Code, is 
     amended--
       (1) in subsection (b), by inserting after the first 
     sentence the following: ``The grading system shall include 
     standards for rating the fuel efficiency of tires designed 
     for use on passenger cars and light trucks.''; and
       (2) by adding at the end the following:
       ``(d) National Tire Fuel Efficiency Program.--(1) The 
     Secretary shall develop and carry out a national tire fuel 
     efficiency program for tires designed for use on passenger 
     cars and light trucks.
       ``(2) The program shall include the following:
       ``(A) Policies and procedures for testing and labeling 
     tires for fuel economy to enable tire buyers to make informed 
     purchasing decisions about the fuel economy of tires.
       ``(B) Policies and procedures to promote the purchase of 
     energy-efficient replacement tires, including purchase 
     incentives, website listings on the Internet, printed fuel 
     economy guide booklets, and mandatory requirements for tire 
     retailers to provide tire buyers with fuel-efficiency 
     information on tires.
       ``(C) Minimum fuel economy standards for tires, promulgated 
     by the Secretary.
       ``(3) The minimum fuel economy standards for tires shall--
       ``(A) ensure that the average fuel economy of replacement 
     tires is equal to or better than the average fuel economy of 
     tires sold as original equipment;
       ``(B) secure the maximum technically feasible and cost-
     effective fuel savings;
       ``(C) not adversely affect tire safety;
       ``(D) not adversely affect the average tire life of 
     replacement tires;
       ``(E) incorporate the results from--
       ``(i) laboratory testing; and
       ``(ii) to the extent appropriate and available, on-road 
     fleet testing programs conducted by the manufacturers; and
       ``(F) not adversely affect efforts to manage scrap tires.
       ``(4) The policies, procedures, and standards developed 
     under paragraph (2) shall apply to all types and models of 
     tires that are covered by the uniform tire quality grading 
     standards under section 575.104 of title 49, Code of Federal 
     Regulations (or any successor regulation).
       ``(5) Not less often than every three years, the Secretary 
     shall review the minimum fuel economy standards in effect for 
     tires under this subsection and revise the standards as 
     necessary to ensure compliance with requirements under 
     paragraph (3). The Secretary may not, however, reduce the 
     average fuel economy standards applicable to replacement 
     tires.
       ``(6) Nothing in this chapter shall be construed to preempt 
     any provision of State law relating to higher fuel economy 
     standards applicable to replacement tires designed for use on 
     passenger cars and light trucks.
       ``(7) Nothing in this chapter shall apply to--
       ``(A) a tire or group of tires with the same SKU, plant, 
     and year, for which the volume of tires produced or imported 
     is less than 15,000 annually;
       ``(B) a deep tread, winter-type snow tire, space-saver 
     tire, or temporary use spare tire;
       ``(C) a tire with a normal rim diameter of 12 inches or 
     less;
       ``(D) a motorcycle tire; or
       ``(E) a tire manufactured specifically for use in an off-
     road motorized recreational vehicle.
       ``(8) In this subsection, the term `fuel economy', with 
     respect to tires, means the extent to which the tires 
     contribute to the fuel economy of the motor vehicles on which 
     the tires are mounted.
       (b) Conforming Amendment.--Section 30103(b) of title 49, 
     United States Code, is amended in paragraph (1) by striking 
     ``When'' and inserting ``Except as provided in section 
     30123(d) of this title, when''.
       (c) Time for Implementation.--The Secretary of 
     Transportation shall ensure that the national tire fuel 
     efficiency program required under subsection (d) of section 
     30123 of title 49, United States Code (as added by subsection 
     (a)(2)), is administered so as to apply the policies, 
     procedures, and standards developed under paragraph (2) of 
     such subsection (d) beginning not later than March 31, 2008.
                                 ______
                                 
  SA 812. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:


[[Page S6937]]


       On page 755, after line 25, add the following:

     SEC. 1329. CONSOLIDATION OF GASOLINE INDUSTRY.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the consolidation of the 
     refiners, importers, producers, and wholesalers of gasoline 
     with the sellers of the gasoline at retail.
       (b) Contents.--The study conducted under subsection (a) 
     shall include an analysis of the impact of the consolidation 
     on--
       (1) the retail price of gasoline;
       (2) small business ownership;
       (3) other corollary effects on the market economy of fuel 
     distribution;
       (4) local communities; and
       (5) other market impacts of the consolidation.
       (c) Submission to Congress.--Not later than 1 year after 
     the date of enactment of this Act, the Comptroller General 
     shall submit to Congress the study conducted under subsection 
     (a).
                                 ______
                                 
  SA 813. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 296, after line 25, add the following:

     SEC. 347. FINGER LAKES NATIONAL FOREST WITHDRAWAL.

       All Federal land within the boundary of Finger Lakes 
     National Forest in the State of New York is withdrawn from--
       (1) all forms of entry, appropriation, or disposal under 
     the public land laws; and
       (2) disposition under all laws relating to oil and gas 
     leasing.
                                 ______
                                 
  SA 814. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       At the end of title XV (as agreed to) add the following:

                   Subtitle G--High Gas Price Relief

                   PART I--RELIEF FOR RURAL COMMUTERS

     SEC. 1581. EXCLUSION FOR CERTAIN FUEL COSTS OF RURAL 
                   COMMUTERS.

       (a) In General.--Section 132(f)(1) (defining qualified 
     transportation fringe) is amended by adding at the end the 
     following new subparagraph:
       ``(D) In the case of an eligible rural commuter, the cost 
     of fuel for a highway vehicle of the taxpayer the primary 
     purpose of which is to travel between the taxpayer's 
     residence and place of employment.''.
       (b) Limitation on Exclusion.--Section 132(f)(2) (relating 
     to limitation on exclusion) is amended by striking ``and'' at 
     the end of subparagraph (A), by striking the period at the 
     end of subparagraph (B) and inserting ``, and'', and by 
     adding at the end the following new subparagraph:
       ``(C) $50 per month in the case of the benefit described in 
     subparagraph (D).''.
       (c) Eligible Rural Commuter.--Section 132(f)(5) (relating 
     to definitions) is amended by adding at the end the following 
     new subparagraph:
       ``(F) Eligible rural commuter.--The term `eligible rural 
     commuter' means any employee--
       ``(i) who resides in a rural area (as defined by the Bureau 
     of the Census),
       ``(ii) who works in an area which is not accessible by a 
     transit system designed primarily to provide daily work trips 
     within a local commuting area, and
       ``(iii) who is not be eligible to claim any qualified 
     transportation fringe described in subparagraph (A) or (B) of 
     paragraph (1).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to expenses incurred on and after the date of the 
     enactment of this Act and before January 1, 2006.

                  PART II--ECONOMIC SUBSTANCE DOCTRINE

     SEC. 1582. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine; Etc.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal tax effects) the taxpayer's economic position, 
     and
       ``(II) the taxpayer has a substantial nontax purpose for 
     entering into such transaction and the transaction is a 
     reasonable means of accomplishing such purpose.

     In applying subclause (II), a purpose of achieving a 
     financial accounting benefit shall not be taken into account 
     in determining whether a transaction has a substantial nontax 
     purpose if the origin of such financial accounting benefit is 
     a reduction of income tax.
       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance by reason of having a potential for profit 
     unless--

       ``(I) the present value of the reasonably expected pre-tax 
     profit from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected, and
       ``(II) the reasonably expected pre-tax profit from the 
     transaction exceeds a risk-free rate of return.

       ``(C) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (B)(ii).
       ``(2) Special rules for transactions with tax-indifferent 
     parties.--
       ``(A) Special rules for financing transactions.--The form 
     of a transaction which is in substance the borrowing of money 
     or the acquisition of financial capital directly or 
     indirectly from a tax-indifferent party shall not be 
     respected if the present value of the deductions to be 
     claimed with respect to the transaction is substantially in 
     excess of the present value of the anticipated economic 
     returns of the person lending the money or providing the 
     financial capital. A public offering shall be treated as a 
     borrowing, or an acquisition of financial capital, from a 
     tax-indifferent party if it is reasonably expected that at 
     least 50 percent of the offering will be placed with tax-
     indifferent parties.
       ``(B) Artificial income shifting and basis adjustments.--
     The form of a transaction with a tax-indifferent party shall 
     not be respected if--
       ``(i) it results in an allocation of income or gain to the 
     tax-indifferent party in excess of such party's economic 
     income or gain, or
       ``(ii) it results in a basis adjustment or shifting of 
     basis on account of overstating the income or gain of the 
     tax-indifferent party.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity not subject to tax imposed 
     by subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if the items taken into 
     account with respect to the transaction have no substantial 
     impact on such person's liability under subtitle A.
       ``(C) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection with a trade 
     or business or an activity engaged in for the production of 
     income.
       ``(D) Treatment of lessors.--In applying paragraph 
     (1)(B)(ii) to the lessor of tangible property subject to a 
     lease--
       ``(i) the expected net tax benefits with respect to the 
     leased property shall not include the benefits of--

       ``(I) depreciation,
       ``(II) any tax credit, or
       ``(III) any other deduction as provided in guidance by the 
     Secretary, and

       ``(ii) subclause (II) of paragraph (1)(B)(ii) shall be 
     disregarded in determining whether any of such benefits are 
     allowable.
       ``(4) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 1583. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       (a) In General.--Subchapter A of chapter 68 is amended by 
     inserting after section 6662A the following new section:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 40 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `40 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement'

[[Page S6938]]

     means any amount which would be an understatement under 
     section 6662A(b)(1) if section 6662A were applied by taking 
     into account items attributable to noneconomic substance 
     transactions rather than items to which section 6662A would 
     apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction 
     if--
       ``(A) there is a lack of economic substance (within the 
     meaning of section 7701(o)(1)) for the transaction giving 
     rise to the claimed benefit or the transaction was not 
     respected under section 7701(o)(2), or
       ``(B) the transaction fails to meet the requirements of any 
     similar rule of law.
       ``(d) Rules Applicable to Compromise of Penalty.--
       ``(1) In general.--If the 1st letter of proposed deficiency 
     which allows the taxpayer an opportunity for administrative 
     review in the Internal Revenue Service Office of Appeals has 
     been sent with respect to a penalty to which this section 
     applies, only the Commissioner of Internal Revenue may 
     compromise all or any portion of such penalty.
       ``(2) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply for purposes of paragraph 
     (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--

       ``(1) For coordination of penalty with understatements 
     under section 6662 and other special rules, see section 
     6662A(e).
       ``(2) For reporting of penalty imposed under this section 
     to the Securities and Exchange Commission, see section 
     6707A(e).''.
       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) is amended 
     by inserting ``and without regard to items with respect to 
     which a penalty is imposed by section 6662B'' before the 
     period at the end.
       (2) Subsection (e) of section 6662A is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A), by inserting ``and a noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'',
       (C) in paragraph (2)(B), by inserting ``6662B or'' before 
     ``6663'',
       (D) in paragraph (2)(C)(i), by inserting ``or section 
     6662B'' before the period at the end,
       (E) in paragraph (2)(C)(ii), by inserting ``and section 
     6662B'' after ``This section'',
       (F) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (G) by adding at the end the following new paragraph:
       ``(4) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Subsection (e) of section 6707A is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(C)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or under 
     section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 is amended by inserting after 
     the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 1584. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) (relating to interest on 
     unpaid taxes attributable to nondisclosed reportable 
     transactions) is amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--
       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).'', and
       (2) by inserting ``and Noneconomic Substance Transactions'' 
     in the heading thereof after ``Transactions''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.
                                 ______
                                 
  SA 815. Mr. CORZINE submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 768, after line 20, add the following:

                  TITLE XV--ENERGY AND CLIMATE CHANGE

     SECTION 1501. SHORT TITLE

       This title may be cited as the ``Energy and Climate Change 
     Act of 2005''.

                     Subtitle A--National Strategy

     SEC. 1511. DEFINITIONS.

       In this subtitle:
       (1) Climate-friendly energy technology.--The term 
     ``climate-friendly energy technology'' means any energy 
     supply, transmission, or end-use technology that, over the 
     life of the technology and compared to similar technology in 
     commercial use--
       (A) results in reduced emissions of greenhouse gases or 
     increased sequestration of greenhouse gases; and
       (B) may--
       (i) substantially lower emissions of other pollutants; or
       (ii) generate substantially smaller or less hazardous 
     quantities of solid or liquid waste.
       (2) Director.--The term ``Director'' means the Director of 
     Climate Change Policy appointed under section 1513(a).
       (3) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluorocarbons;
       (E) perflurorocarbons; and
       (F) sulfur hexafluoride.
       (4) Interagency task force.--The term ``Interagency Task 
     Force'' means the Interagency Task Force on Climate Change 
     Policy established under section 1514(a).
       (5) Stabilization of greenhouse gas concentrations.--The 
     term ``stabilization of greenhouse gas concentrations'' means 
     the stabilization of greenhouse gas concentrations in the 
     atmosphere at a level that would prevent dangerous 
     anthropogenic interference with the climate system, 
     recognizing that such a level should be achieved within a 
     time frame sufficient to allow ecosystems to adapt naturally 
     to climate change, to ensure that food production is not 
     threatened, and to enable economic development to proceed in 
     a sustainable manner, as contemplated by the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.
       (6) Strategy.--The term ``Strategy'' means the national 
     climate change strategy developed or updated under section 
     1512.

     SEC. 1512. NATIONAL CLIMATE CHANGE STRATEGY.

       (a) In General.--
       (1) Development.--The President, acting through the 
     Interagency Task Force and the Director and in consultation 
     with Congress, shall develop a National Climate Change 
     Strategy.
       (2) Actions.--The Strategy shall describe appropriate 
     actions by the United States that, in conjunction with 
     actions by other nations--
       (A) will lead to the long-term stabilization of greenhouse 
     gas concentrations;
       (B) are consistent with the relevant treaty obligations of 
     the United States; and
       (C) are carried out in a manner that supports the long-term 
     economic growth of the United States.
       (3) Timing.--The Strategy shall reflect the fact that the 
     stabilization of greenhouse gas concentrations will take from 
     many decades to more than a century to accomplish, but that 
     significant actions by current and prospective major emitters 
     of greenhouse gases must begin in the near term.
       (b) Elements.--The Strategy shall be comprised of--
       (1) interim greenhouse gas emission goals and specific 
     near-term and medium-term programs and actions to meet the 
     goals, developed on the basis of a broad range of emission 
     scenarios (including scenarios evaluated by the 
     Intergovernmental Panel on Climate Change) and taking into 
     account the need for actions by other nations;
       (2) expanded climate-related technology research, 
     development, demonstration, and commercial application 
     activities, including--
       (A) a national commitment to double research and 
     development on climate-friendly energy technologies by public 
     and private sectors in the United States; and
       (B) domestic and international demonstration and deployment 
     programs that employ bold, breakthrough technologies 
     (including climate-friendly energy technologies) that will 
     make possible a profound transformation of the energy, 
     transportation, industrial, agricultural, and building 
     sectors of the United States;
       (3) climate adaptation research that--
       (A) assesses the sensitivity, adaptive capacity, and 
     vulnerability of natural and human systems to natural climate 
     variability, climate change, and the potential impacts of the 
     variability and climate change; and
       (B) identifies potential strategies and actions that can 
     reduce vulnerability to natural climate variability and 
     climate change and damage resulting from impacts of climate 
     change; and
       (4) climate science research that--

[[Page S6939]]

       (A) continually builds on existing scientific understanding 
     of the climate system; and
       (B) focuses on resolving the remaining scientific, 
     technical, and economic uncertainties with respect to the 
     causes of, impacts from, and potential responses to climate 
     change.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the President, acting through the 
     Interagency Task Force and the Director, shall submit to 
     Congress a report that includes--
       (1) a description of the Strategy and the goals of the 
     Strategy, including the manner in which the Strategy 
     addresses each of the elements outlined in subsection (b);
       (2) an inventory and evaluation of Federal and non-Federal 
     programs and activities intended to carry out the Strategy;
       (3) a description of the manner in which the Strategy will 
     serve as a framework for climate change response actions by 
     all Federal agencies, including a description of coordination 
     mechanisms and interagency activities;
       (4) a description of the manner in which the Strategy is 
     consistent with other energy, transportation, industrial, 
     agricultural, forestry, environmental, economic, and other 
     relevant policies of the United States;
       (5) a description of the manner in which the Strategy--
       (A) does not result in serious harm to the economy of the 
     United States;
       (B) uses market-oriented mechanisms; and
       (C) minimizes any adverse short-term and long-term social, 
     economic, national security, and environmental impacts;
       (6) a description of the manner in which changes in energy 
     supply (including a full range of energy sources and 
     technologies) could reduce greenhouse gas emissions;
       (7) a description of the manner in which changes in energy 
     end-use (including demand-side management) could reduce 
     greenhouse gas emissions;
       (8) a description of the manner in which the Strategy will 
     minimize potential risks associated with climate change to 
     public health and safety, private property, public 
     infrastructure, biological diversity, ecosystems, and 
     domestic food supply and commodities, while not diminishing 
     the quality of life in the United States;
       (9) a description of the manner in which the Strategy was 
     developed with participation by, and consultation among, 
     Federal, State, tribal, and local government agencies, 
     nongovernmental organizations, academia, scientific bodies, 
     industry, the public, and other interested parties;
       (10) a description of Federal activities that promote, to 
     the maximum extent practicable, public awareness, outreach, 
     and information-sharing to further the understanding of the 
     full range of climate change-related issues; and
       (11) recommendations for legislative or administrative 
     changes to Federal programs or activities implemented to 
     carry out the Strategy, in light of new knowledge of climate 
     change and the impacts and costs or benefits of climate 
     change, or technological capacity to improve mitigation or 
     adaptation activities.
       (d) Update.--Not later than 4 years after the date of 
     submission of the initial report on the Strategy developed 
     pursuant to this section, and at the end of each 4-year 
     period thereafter, the President shall submit to Congress an 
     updated version of the Strategy, along with an updated report 
     under subsection (c).
       (e) National Academy of Sciences Review.--
       (1) In general.--Not later than 90 days after the date of 
     publication of the Strategy under subsection (c) and each 
     update under subsection (d), the Director of the National 
     Science Foundation, on behalf of the Director and the 
     Interagency Task Force, shall enter into appropriate 
     arrangements with the National Academy of Sciences to conduct 
     a review of the Strategy or update.
       (2) Criteria.--The review by the National Academy of 
     Sciences shall evaluate the goals and recommendations 
     contained in the Strategy or update, taking into 
     consideration--
       (A) the adequacy of effort and the appropriateness of focus 
     of the totality of all public, private, and public-private 
     sector actions of the United States with respect to the 
     Strategy;
       (B) the adequacy of the budget and the effectiveness with 
     which each participating Federal agency is carrying out the 
     responsibilities of the Federal agency;
       (C) current scientific knowledge regarding climate change 
     and the impacts of climate change;
       (D) current understanding of human social and economic 
     responses to climate change, and responses of natural 
     ecosystems to climate change;
       (E) advancements in energy technologies that reduce, avoid, 
     or sequester greenhouse gases or otherwise mitigate the risks 
     of climate change;
       (F) current understanding of economic costs and benefits of 
     mitigation or adaptation activities;
       (G) the existence of alternative policy options that could 
     achieve the Strategy goals at lower economic, environmental, 
     or social cost; and
       (H) international activities and the actions taken by the 
     United States and other nations to achieve the long-term 
     goals of the Strategy.
       (3) Report.--
       (A) In general.--Not later than 1 year after the date of 
     the submission to Congress of the Strategy or update, as 
     appropriate, the National Academy of Sciences shall prepare 
     and submit to Congress and the President a report concerning 
     the results of the review of the National Academy of 
     Sciences, along with any recommendations, as appropriate.
       (B) Availability to public.--The report under subparagraph 
     (A) shall be made available to the public.
       (f) Savings Provision.--Nothing in this section creates a 
     new legal obligation for any person or other entity (except 
     for prescribing duties in connection with the development, 
     updating, and review of the Strategy).
       (g) Conforming Amendment.--Section 1103(b) of the Global 
     Climate Protection Act of 1987 (15 U.S.C. 2901 note; Public 
     Law 100-204) is amended by inserting ``, the Department of 
     Energy, and other Federal agencies as appropriate'' after 
     ``Environmental Protection Agency''.

     SEC. 1513. DIRECTOR OF CLIMATE CHANGE POLICY.

       (a) Appointment.--The President shall appoint a qualified 
     individual within the Executive Office of the President, by 
     and with the advice and consent of the Senate, to serve as 
     the Director of Climate Change Policy.
       (b) Duties.--The Director shall carry out climate change 
     policy activities and shall--
       (1) coordinate the development and periodic update of the 
     Strategy;
       (2) facilitate the work of the Interagency Task Force and 
     serve as the primary liaison between Federal agencies in 
     developing and implementing the Strategy;
       (3) coordinate the submission of Federal agency budget 
     requests as needed to carry out interagency programs and 
     policies necessary to meet the goals of the Strategy;
       (4) advise the President concerning--
       (A) necessary changes in organization, management, 
     budgeting, and personnel allocation of Federal agencies 
     involved in climate change activities;
       (B) the extent to which existing or newly created tax, 
     trade, or foreign policies and energy, transportation, 
     industrial, agricultural, forestry, building, and other 
     relevant sector programs are capable of achieving the 
     Strategy individually or in combination; and
       (C) the extent to which any proposed international treaties 
     or components of treaties that have an influence on 
     activities that affect greenhouse gas emissions are 
     consistent with the Strategy;
       (5) establish and maintain a process to ensure the 
     participation of Federal, State, tribal, and local government 
     agencies, nongovernmental organizations, academia, scientific 
     bodies, industry, the public, and other interested parties in 
     the formulation of climate change-related advice to be 
     provided to the President; and
       (6) promote public awareness, outreach, and information 
     sharing to further the understanding of climate change-
     related issues.
       (c) Personnel.--
       (1) In general.--The Director may employ a professional 
     staff of not more than 10 individuals to carry out the 
     responsibilities and duties prescribed in this section.
       (2) Other agencies and institutions.--In addition to the 
     personnel employed under paragraph (1), the Director may 
     obtain staff for a limited term from Federal agencies, State 
     agencies, institutions of higher education, nonprofit 
     institutions of a scientific or technical character, or a 
     National Laboratory, pursuant to--
       (A) section 3374 of title 5, United States Code;
       (B) section 14(a)(2) of the National Science Foundation Act 
     of 1950 (42 U.S.C. 1873(a)(2)); or
       (C) section 301 of the Hydrogen Future Act of 1996 (42 
     U.S.C. 7238).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Executive Office of the President 
     for the Director to carry out the duties under this section 
     $5,000,000 for each of fiscal years 2006 through 2015, to 
     remain available until expended.

     SEC. 1514. INTERAGENCY TASK FORCE ON CLIMATE CHANGE.

       (a) In General.--The President shall establish an 
     Interagency Task Force on Climate Change to coordinate 
     Federal climate change activities and programs carried out in 
     furtherance of the Strategy.
       (b) Composition.--The Interagency Task Force shall be 
     composed of--
       (1) the Director, who shall serve as Chairperson;
       (2) the Secretary of State;
       (3) the Secretary of Energy;
       (4) the Secretary of Defense;
       (5) the Secretary of Commerce;
       (6) the Secretary of Transportation;
       (7) the Secretary of Agriculture;
       (8) the Secretary of the Interior;
       (9) the Director of the National Science Foundation;
       (10) the Administrator of the National Aeronautics and 
     Space Administration;
       (11) the Administrator of the Environmental Protection 
     Agency;
       (12) the Chairman of the Council of Economic Advisers;
       (13) the Chairman of the Council on Environmental Quality;
       (14) the Director of the Office of Science and Technology 
     Policy;
       (15) the Director of the Office of Management and Budget; 
     and

[[Page S6940]]

       (16) the heads of such other Federal agencies as the 
     President considers to be appropriate.
       (c) Strategy.--The Interagency Task Force shall serve as 
     the primary forum through which the Federal agencies 
     represented on the Interagency Task Force jointly advise the 
     President on--
       (1) the development and periodic update of the Strategy; 
     and
       (2) the implementation of interagency and agency programs 
     to carry out activities in furtherance of the goals and 
     objectives of the Strategy.
       (d) Working Groups.--
       (1) In general.--The Director, in consultation with the 
     members of the Interagency Task Force, may establish such 
     topical working groups as may be necessary to carry out the 
     duties of the Interagency Task Force in furtherance of the 
     Strategy, taking into consideration the elements of the 
     Strategy as outlined in this subtitle.
       (2) Composition.--The working groups may be comprised of 
     members of the Interagency Task Force or their designees.
       (e) Staff.--The Federal agencies represented on the 
     Interagency Task Force may provide staff from the agencies to 
     support information, data collection, and analyses required 
     by the Interagency Task Force.
       (f) Hearings.--On the request of the Director, the 
     Interagency Task Force may hold such hearings, meet and act 
     at such times and places, take such testimony, and receive 
     such evidence as the Interagency Task Force considers to be 
     appropriate.

     SEC. 1515. ANNUAL REPORT.

       In consultation with the Interagency Task Force and other 
     interested parties, the Director shall prepare an annual 
     report for submission by the President to Congress, along 
     with the budget request under section 1105 of title 31, 
     United States Code, that includes--
       (1) a description of the Strategy and the goals of the 
     Strategy;
       (2) an inventory of Federal programs and activities 
     intended to carry out the Strategy;
       (3) an evaluation of Federal programs and activities 
     implemented as part of the Strategy against the goals 
     outlined in the Strategy;
       (4) a description of changes to Federal programs or 
     activities implemented to carry out the Strategy, in light of 
     new knowledge of climate change and the impacts and costs or 
     benefits of climate change, or technological capacity to 
     improve mitigation or adaptation activities;
       (5)(A) a description of all Federal spending on climate 
     change for the current fiscal year and each of the 5 
     preceding fiscal years, categorized by Federal agency and 
     program function (including scientific research, energy 
     research and development, international conservation and 
     technology transfer, regulation, education, and other 
     activities); and
       (B) a recommendation for Federal spending on climate change 
     for the next fiscal year;
       (6) an estimate of the budgetary impact for the current 
     fiscal year and each of the 5 preceding fiscal years of any 
     Federal tax credits, tax deductions, or other incentives 
     claimed by taxpayers that are attributable to greenhouse gas 
     emission reduction activities;
       (7) an estimate of the quantity, in metric tons, of 
     greenhouse gas emissions reduced, avoided, or sequestered as 
     a result of the implementation of the Strategy; and
       (8) recommendations for legislative or administrative 
     actions or adjustments that will accelerate progress towards 
     meeting the goals contained in the Strategy or improve the 
     efficiency and effectiveness of Federal programs that are 
     part of the Strategy.

     SEC. 1516. INTEGRATION WITH OFFICE OF SCIENCE AND TECHNOLOGY 
                   POLICY.

       (a) Priority Goals.--Section 101(b) of the National Science 
     and Technology Policy, Organization, and Practices Act of 
     1976 (42 U.S.C. 6601(b)) is amended--
       (1) by redesignating paragraphs (7) through (13) as 
     paragraphs (8) through (14), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) improving efforts to understand, assess, predict, 
     mitigate, and respond to global climate change;''.
       (b) Functions of the Director.--Section 204(b)(1) of the 
     National Science and Technology Policy, Organization, and 
     Practices Act of 1976 (42 U.S.C. 6613(b)(1)) is amended by 
     striking ``, but not limited to,'' and inserting ``global 
     climate change,''.
       (c) Additional Functions of Director.--Section 207 of the 
     National Science and Technology Policy, Organization, and 
     Practices Act of 1976 (42 U.S.C. 6616) is amended--
       (1) by redesignating subsections (a), (b), and (c) as 
     subsections (b), (c), and (d), respectively; and
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Advice to Director of Climate Change Policy.--In 
     carrying out this Act, the Director shall advise the Director 
     of Climate Change Policy on matters concerning science and 
     technology as the matters relate to global climate change.''.

                    Subtitle B--Technology Programs

     SEC. 1521. OFFICE OF CLIMATE CHANGE TECHNOLOGY.

       (a) In General.--Title II of the Department of Energy 
     Organization Act (42 U.S.C. 7131 et seq.) (as amended by 
     section 502(a)) is amended by adding at the end the 
     following:


                 ``office of climate change technology

       ``Sec. 218. (a) There shall be established within the 
     Department an Office of Climate Change Technology to be 
     headed by a Director, who shall--
       ``(1) be appointed in the Senior Executive Service; and
       ``(2) report to the Secretary in such manner as the 
     Secretary may prescribe.
       ``(b) The Director shall be a person who, by reason of 
     professional background and experience, is specially 
     qualified to coordinate climate change policy and technical 
     activities.
       ``(c) The Director shall--
       ``(1) promote and coordinate issues, policies, and 
     activities within the Department related to climate change 
     and coordinate the issuance of such reports relating to 
     climate change as may be required by law;
       ``(2) lead the formulation and periodic revision of a 
     comprehensive strategy of the Department for energy research, 
     development, demonstration, and commercial application to 
     implement national climate change strategy, including 
     quantitative performance and deployment goals for energy 
     technologies that reduce, avoid, or sequester emissions of 
     greenhouse gases;
       ``(3) analyze the research, development, demonstration, and 
     commercial application activities of the Department to assess 
     the contribution of the activities to the strategy under 
     paragraph (2) and make recommendations to the appropriate 
     officers of the Department;
       ``(4) facilitate, in cooperation with appropriate programs 
     of the Department, the development of domestic and 
     international cooperative research and development agreements 
     (as that term is defined in section 12(d) of the Stevenson-
     Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(d))), or similar cooperative, cost-shared partnerships 
     with non-Federal organizations to accelerate the rate of 
     domestic and international demonstration and deployment of 
     energy technologies that reduce, avoid, or sequester 
     emissions of greenhouse gases;
       ``(5) participate in the planning activities of relevant 
     Department programs;
       ``(6) participate in the development and assessment of 
     domestic and international policies in order to determine and 
     report on the effects of the policies on the generation, 
     reduction, avoidance, and sequestration of greenhouse gases 
     from activities related to the production and use of energy;
       ``(7) help develop national climate change strategy by--
       ``(A) fostering the development of tools, data, and 
     capabilities to ensure that the United States has a robust 
     capability for evaluating alternative climate change response 
     scenarios and that the Office can provide long-term 
     analytical continuity on climate change issues; and
       ``(B) providing technical support, on request, to the 
     President, interagency groups, or other Federal agencies;
       ``(8) carry out programs to raise public awareness of 
     climate change, the relationship of climate change to energy 
     production and use, and means by which to mitigate human-
     induced climate change through changes in energy production 
     or use;
       ``(9) at the direction of the Secretary or another 
     appropriate officer of the Department, serve as the 
     representative of the Department for interagency and 
     multilateral policy discussions relating to global climate 
     change, including the activities of--
       ``(A) the Committee on Earth and Environmental Sciences 
     established by section 102 of the Global Change Research Act 
     of 1990 (15 U.S.C. 2932) and any successor committee; and
       ``(B) other interagency committees coordinating policies or 
     activities relating to global climate change; and
       ``(10) in accordance with law administered by the Secretary 
     and other applicable Federal law and contracts (including 
     patent and intellectual property laws) and in furtherance of 
     the United Nations Framework Convention on Climate Change, 
     done at New York on May 9, 1992--
       ``(A) identify for, and transfer, deploy, diffuse, and 
     apply to, parties to the Convention (including the United 
     States) any technologies, practices, or processes that 
     reduce, avoid, or sequester emissions of greenhouse gases if 
     the technologies, practices, or processes have been developed 
     with funding from the Department or any of the facilities or 
     laboratories of the Department; and
       ``(B) support reasonable efforts by the parties to the 
     Convention (including the United States) to identify and 
     remove legal, trade, financial, and other barriers to the use 
     and application of any technologies, practices, or processes 
     that reduce, avoid, or sequester emissions of greenhouse 
     gases.''.
       (b) Conforming Amendments.--
       (1) Section 1603 of the Energy Policy Act of 1992 (42 
     U.S.C. 13383) is repealed.
       (2) The table of contents for the Energy Policy Act of 1992 
     (42 U.S.C. prec. 13201) is amended by striking the item 
     relating to section 1603.
       (3) The table of contents for the Department of Energy 
     Organization Act (42 U.S.C. prec. 7101) (as amended by 
     section 502(b)(1)(B)) is amended by adding at the end of the 
     items relating to title II the following:

``Sec. 217. Office of Climate Change Technology.''.

     SEC. 1522. CLIMATE CHANGE AND CLEAN ENERGY TECHNOLOGY 
                   PROGRAMS.

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

[[Page S6941]]

     ``SEC. 1610. CLIMATE CHANGE TECHNOLOGY PROGRAM.

       ``(a) Establishment.--There is established within the 
     Office of Climate Change Technology of the Department a 
     program to support accelerated research and development 
     projects on energy technologies that--
       ``(1) have significant potential to--
       ``(A) reduce or avoid anthropogenic emissions of greenhouse 
     gases;
       ``(B) remove and sequester greenhouse gases from emission 
     streams; or
       ``(C) remove and sequester greenhouse gases from the 
     atmosphere;
       ``(2) are not being addressed significantly by other 
     Department programs;
       ``(3) would represent a substantial advance beyond 
     currently available technology; and
       ``(4) are not expected to be applied commercially before 
     2020.
       ``(b) Program Plan.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to Congress a 10-year program plan to guide activities 
     to be carried out under this section.
       ``(2) Updates.--After the initial preparation and 
     submission of the plan, the Secretary shall biennially update 
     and resubmit to Congress the program plan, including--
       ``(A) an evaluation of progress toward meeting the goals of 
     the comprehensive strategy of the Department for energy 
     research, development, demonstration, and commercial 
     application to implement the National Climate Change 
     Strategy;
       ``(B) an evaluation of the contributions of all energy 
     technology programs of the Department to the National Climate 
     Change Strategy; and
       ``(C) recommendations for actions by the Department and 
     other Federal agencies to address the components of energy-
     related technology development that are necessary to support 
     the National Climate Change Strategy.
       ``(c) Proposals.--
       ``(1) In general.--A proposal may be submitted by an 
     applicant or consortium of 1 or more--
       ``(A) industrial entities;
       ``(B) institutions of higher education (as that term is 
     defined in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a))); or
       ``(C) National Laboratories.
       ``(2) Minimum requirements.--At a minimum, each proposal 
     shall include--
       ``(A) a multiyear management plan that outlines the manner 
     in which the proposed research, development, demonstration, 
     and deployment activities will be carried out;
       ``(B) quantitative technology goals and greenhouse gas 
     emission reduction targets that can be used to measure 
     performance against program objectives;
       ``(C) the total cost of the proposal for each year for 
     which funding is requested, and a breakdown of those costs by 
     category;
       ``(D) evidence that the applicant has in existence or has 
     access to--
       ``(i) the technical capability to enable the applicant to 
     make use of existing research support and facilities in 
     carrying out the objectives of the proposal;
       ``(ii) a multidisciplinary research staff experienced in 
     technologies or practices able to sequester, avoid, or 
     capture greenhouse gas emissions;
       ``(iii) access to facilities and equipment to enable the 
     conduct of laboratory-scale testing or demonstration of 
     technologies or related processes undertaken through the 
     program; and
       ``(iv) a commitment for matching funds and other resources 
     as may be needed from non-Federal sources, including cash, 
     equipment, services, materials, appropriate technology 
     transfer activities, and other assets directly related to the 
     cost of the proposal;
       ``(E) evidence that the proposed activities are 
     supplemental to, and not duplicative of, existing research 
     and development activities carried out, funded, or otherwise 
     supported by the Department;
       ``(F) a description of the technology transfer mechanisms 
     and public-private partnerships that the applicant will use 
     to make available research results to industry and to other 
     researchers;
       ``(G) a statement whether the unique capabilities of a 
     National Laboratory warrant collaboration with that 
     Laboratory, and the extent of any such collaboration 
     proposed; and
       ``(H) evidence of the ability of the applicant to undertake 
     and complete the proposed project.
       ``(d) Centers.--
       ``(1) In general.--The Secretary may fund 1 or more centers 
     to improve--
       ``(A) methods of climate monitoring and prediction;
       ``(B) climate modeling; or
       ``(C) quality and dissemination of climate data from 
     Department or other Federal climate change programs.
       ``(2) Location.--In reviewing proposals for centers under 
     competitive procedures, the Secretary shall seek to locate 
     centers in regions that face significant climate-related 
     ecosystem challenges.
       ``(e) Procurement Authorities.--The Office of Climate 
     Change Technology may use any of the authorities available to 
     the Department--
       ``(1) to solicit proposals for projects under this section; 
     and
       ``(2) to encourage partnerships that will increase the 
     likelihood of success of the projects.
       ``(f) Relationship to Department Programs.--Each project 
     funded under this section shall be--
       ``(1) initiated only after consultation by the Office of 
     Climate Change Technology with 1 or more appropriate offices 
     in the Department that support research and development in 
     areas relating to the project; and
       ``(2) either--
       ``(A) managed directly by the Office of Climate Change 
     Technology; or
       ``(B) managed by the appropriate office (or by a cross-
     functional team from several offices) in the Department that 
     supports research and development in areas related to the 
     project, using funds transferred by the Office of Climate 
     Change Technology.
       ``(g) Cost Sharing.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each project under subsection (a) shall be subject only to 
     such cost-sharing requirements as the Office of Climate 
     Change Technology may provide.
       ``(2) Publication.--Each cost-sharing agreement under this 
     subsection shall be published in the Federal Register by the 
     Office of Climate Change Technology.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $40,000,000 for fiscal year 2006 and 
     $400,000,000 for each of fiscal years 2007 through 2016, to 
     remain available until expended.

     ``SEC. 1611. CLEAN ENERGY TECHNOLOGY EXPORTS PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Clean energy technology.--The term `clean energy 
     technology' means an energy supply or end-use technology 
     that, over the life cycle of the technology and compared to a 
     similar technology already in commercial use in any 
     developing country or country with an economy in transition--
       ``(A) results in reduced emissions of greenhouse gases; and
       ``(B)(i) may substantially lower emissions of air 
     pollutants; or
       ``(ii) may generate substantially smaller or less hazardous 
     quantities of solid or liquid waste.
       ``(2) Country with an economy in transition.--The term 
     `country with an economy in transition' means a country 
     listed in Annex I of the United Nations Framework Convention 
     on Climate Change, done at New York on May 9, 1992, with the 
     notation that the country is 1 of the `Countries that are 
     undergoing the process of transition to a market economy.'.
       ``(3) Developing country.--The term `developing country' 
     means any country not listed in Annex I of the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.
       ``(4) Interagency working group.--The term `interagency 
     working group' means the Interagency Working Group on Clean 
     Energy Technology Exports established under subsection (b).
       ``(b) Interagency Working Group.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of this section, the Secretary, the Secretary of 
     Commerce, and the Administrator of the United States Agency 
     for International Development shall jointly establish a 
     Interagency Working Group on Clean Energy Technology Exports.
       ``(2) Composition.--The interagency working group shall--
       ``(A) be jointly chaired by representatives appointed by 
     the agency heads under paragraph (1); and
       ``(B) include representatives from--
       ``(i) the Department of State;
       ``(ii) the Department of the Treasury;
       ``(iii) the Environmental Protection Agency;
       ``(iv) the Export-Import Bank;
       ``(v) the Overseas Private Investment Corporation;
       ``(vi) the Trade and Development Agency; and
       ``(vii) other Federal agencies determined to be appropriate 
     by all 3 agency heads under paragraph (1).
       ``(3) Subsidiary working groups.--The interagency working 
     group may establish such subsidiary working groups as are 
     necessary to carry out this section.
       ``(4) Program.--The interagency working group shall develop 
     a program, consistent with the subsidy codes of the World 
     Trade Organization, to open and expand energy markets and 
     transfer clean energy technology to those developing 
     countries and countries with an economy in transition that 
     are expected to experience, over the next 20 years, the most 
     significant growth in energy production and associated 
     greenhouse gas emissions, including through technology 
     transfer programs under the United Nations Framework 
     Convention on Climate Change, done at New York on May 9, 
     1992, other international agreements, and relevant Federal 
     efforts.
       ``(5) Duties.--The interagency working group shall--
       ``(A) analyze technology, policy, and market opportunities 
     for international development, demonstration, and deployment 
     of clean energy technology;
       ``(B) investigate issues associated with--
       ``(i) building capacity to deploy clean energy technology 
     in developing countries and countries with an economy in 
     transition, including energy sector reform;
       ``(ii) creation of open, transparent, and competitive 
     markets for clean energy technologies;
       ``(iii) availability of trained personnel to deploy and 
     maintain the clean energy technology; and

[[Page S6942]]

       ``(iv) demonstration and cost-buydown mechanisms to promote 
     first adoption of the technology;
       ``(C) examine relevant trade, tax, international, and other 
     policy issues to assess what policies would help open markets 
     and improve United States clean energy technology exports in 
     support of--
       ``(i) enhancing energy innovation and cooperation, 
     including energy sector and market reform, capacity building, 
     and financing measures;
       ``(ii) improving energy end-use efficiency technologies, 
     including buildings and facilities, vehicle, industrial, and 
     cogeneration technology initiatives; and
       ``(iii) promoting energy supply technologies, including 
     fossil, nuclear, and renewable technology initiatives;
       ``(D) establish an advisory committee involving the private 
     sector and other interested groups on the export and 
     deployment of clean energy technology;
       ``(E) establish a single coordinated mechanism for 
     information dissemination to the private sector and the 
     public on clean energy technologies and clean energy 
     technology transfer opportunities;
       ``(F) monitor the progress of each agency represented in 
     the interagency working group towards meeting goals in the 5-
     year strategic plan submitted to Congress pursuant to the 
     Energy and Water Development Appropriations Act, 2001 (Public 
     Law 106-377), and the Energy and Water Development 
     Appropriations Act, 2002 (Public Law 107-66);
       ``(G) make recommendations to heads of appropriate Federal 
     agencies on ways to streamline Federal programs and policies 
     to improve the role of each agency in the international 
     development, demonstration, and deployment of clean energy 
     technology;
       ``(H) make assessments and recommendations regarding the 
     distinct technological, market, regional, and stakeholder 
     challenges necessary to carry out the program; and
       ``(I) recommend conditions and criteria that will help 
     ensure that United States funds promote sound energy policies 
     in participating countries while simultaneously opening the 
     markets of the participating countries and exporting United 
     States clean energy technology.
       ``(c) Federal Support for Clean Energy Technology 
     Transfer.--Notwithstanding any other provision of law, each 
     Federal agency or Government corporation carrying out an 
     assistance program in support of the activities of United 
     States persons in the environment or energy sector of a 
     developing country or country with an economy in transition 
     shall support, to the maximum extent practicable, the 
     transfer of United States clean energy technology as part of 
     the program.
       ``(d) Annual Report.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, and on March 31 of each year 
     thereafter, the interagency working group shall submit to 
     Congress a report on the activities of the interagency 
     working group during the preceding calendar year.
       ``(2) Content.--The report shall include--
       ``(A) a description of the technology, policy, and market 
     opportunities for international development, demonstration, 
     and deployment of clean energy technology investigated by the 
     interagency working group in that year; and
       ``(B) any policy recommendations to improve the expansion 
     of clean energy markets and United States clean energy 
     technology exports.
       ``(e) Report on Use of Funds.--Not later than January 1, 
     2006, and each year thereafter, the Secretary of State, in 
     consultation with other Federal agencies, shall submit to 
     Congress a report describing the manner in which United 
     States funds appropriated for clean energy technology exports 
     and other relevant Federal programs are being directed in a 
     manner that promotes sound energy policy commitments in 
     developing countries and countries with economies in 
     transition, including efforts pursuant to multilateral 
     environmental agreements.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the departments, agencies, 
     and entities of the United States described in subsection (b) 
     such sums as are necessary to support the transfer of clean 
     energy technology as part of assistance programs carried out 
     by those departments, agencies, and entities in support of 
     activities of United States persons in the energy sector of a 
     developing country or country with an economy in transition.

     ``SEC. 1612. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Developing country.--The term `developing country' 
     means any country not listed in Annex I of the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' has the same meaning given 
     the term in section 101(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1001(a)).
       ``(3) International energy deployment project.--The term 
     `international energy deployment project' means a project--
       ``(A) to--
       ``(i) construct an energy production facility outside the 
     United States for the production of energy to be consumed 
     outside the United States; or
       ``(ii) improve the efficiency of energy use outside the 
     United States, if the energy is also generated and consumed 
     outside the United States; and
       ``(B) that, when deployed, results in a greenhouse gas 
     reduction per unit of energy produced or used (when compared 
     to the technology that would otherwise be deployed) of--
       ``(i) 20 percentage points or more, in the case of a unit 
     or energy-efficiency measure placed in service before January 
     1, 2010;
       ``(ii) 40 percentage points or more, in the case of a unit 
     or energy-efficiency measure placed in service after December 
     31, 2009, and before January 1, 2020; or
       ``(iii) 60 percentage points or more, in the case of a unit 
     or energy-efficiency measure placed in service after December 
     31, 2019, and before January 1, 2030.
       ``(4) Qualifying international energy deployment project.--
     The term `qualifying international energy deployment project' 
     means an international energy deployment project that--
       ``(A) is submitted by a United States firm to the Secretary 
     in accordance with procedures established by the Secretary by 
     regulation;
       ``(B) meets the criteria of section 1608(k), and uses 
     technology that has been successfully developed or deployed 
     in the United States;
       ``(C) is selected by the Secretary without regard to the 
     country in which the project is located, with notice of the 
     selection being published in the Federal Register; and
       ``(D) complies with such other terms and conditions as the 
     Secretary establishes by regulation.
       ``(5) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.
       ``(6) United states.--The term `United States', when used 
     in a geographical sense, means all of the States.
       ``(b) Pilot Program for Financial Assistance.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall, by 
     regulation, provide for a pilot program that provides 
     financial assistance for qualifying international energy 
     deployment projects.
       ``(2) Financial assistance.--
       ``(A) In general.--For each qualifying international energy 
     deployment project selected by the Secretary to participate 
     in the pilot program, the Secretary shall make available a 
     loan or loan guarantee for not more than 50 percent of the 
     total cost of the project, to be repaid at an interest rate 
     equal to the rate for Treasury obligations then issued for 
     periods of comparable maturity.
       ``(B) Developed countries.--A loan or loan guarantee made 
     available for a project to be carried out in a country listed 
     in Annex I of the United Nations Framework Convention on 
     Climate Change, done at New York on May 9, 1992, shall 
     require at least a 50 percent contribution towards the total 
     cost of the loan or loan guarantee by the host country.
       ``(C) Developing countries.--A loan or loan guarantee made 
     for a project to be carried out in a developing country shall 
     require at least a 10 percent contribution toward the total 
     cost of the loan or loan guarantee by the host country.
       ``(D) Capacity building research.--
       ``(i) In general.--A proposal made for a project to be 
     carried out in a developing country may include a research 
     component intended to build technological capacity within the 
     host country.
       ``(ii) Research.--The research shall--

       ``(I) be related to the technologies being deployed; and
       ``(II) involve both an institution in the host country and 
     a participant from the United States that is either an 
     industrial entity, an institution of higher education, or a 
     National Laboratory.

       ``(iii) Host institution contribution.--The host 
     institution shall contribute at least 50 percent of funds 
     provided for the capacity-building research.
       ``(c) Coordination With Other Programs.--A qualifying 
     international energy deployment project funded under this 
     section shall not be eligible as a qualifying clean coal 
     technology under section 415 of the Clean Air Act (42 U.S.C. 
     7651n).
       ``(d) Report and Recommendation.--
       ``(1) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall submit to the 
     President a report on the results of the pilot projects 
     conducted under this section.
       ``(2) Recommendation.--Not later than 60 days after 
     receiving the report, the President shall submit to Congress 
     a recommendation, based on the results of the pilot projects 
     as reported by the Secretary, concerning whether the 
     financial assistance program under this section should be 
     continued, expanded, reduced, or eliminated.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $100,000,000 for each of fiscal years 2006 through 2015, to 
     remain available until expended.''.
       (b) Definition of National Laboratory.--Section 2 of the 
     Energy Policy Act of 1992 (42 U.S.C. 13201) is amended to 
     read as follows:

     ``SEC. 2. DEFINITIONS.

       ``In this Act:

[[Page S6943]]

       ``(1) National laboratory.--The term `National Laboratory' 
     means any of the following laboratories owned by the 
     Department of Energy:
       ``(A) Ames Laboratory.
       ``(B) Argonne National Laboratory.
       ``(C) Brookhaven National Laboratory.
       ``(D) Fermi National Accelerator Laboratory.
       ``(E) Idaho National Engineering and Environmental 
     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) Stanford Linear Accelerator Center.
       ``(P) Thomas Jefferson National Accelerator Facility.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Energy.''.
       (c) Conforming Amendments.--The table of contents for the 
     Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
     amended--
       (1) by striking the item relating to section 2 and 
     inserting the following:

``Sec. 2. Definitions.'';

     and
       (2) by adding at the end of the items relating to title XVI 
     the following:

``Sec. 1610. Climate change technology program.
``Sec. 1611. Clean energy technology exports program.
``Sec. 1612. International energy technology deployment program.''.

     SEC. 1523. COMPREHENSIVE PLANNING AND PROGRAMMING FOR ENERGY 
                   RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

       Section 6 of the Federal Nonnuclear Energy Research and 
     Development Act of 1974 (42 U.S.C. 5905) is amended--
       (1) in the second sentence of subsection (a)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``, and''; and
       (C) by adding at the end the following--
       ``(4) solutions to the effective management of greenhouse 
     gas emissions in the long term by the development of 
     technologies and practices designed to--
       ``(A) reduce or avoid anthropogenic emissions of greenhouse 
     gases;
       ``(B) remove and sequester greenhouse gases from emission 
     streams; and
       ``(C) remove and sequester greenhouse gases from the 
     atmosphere.''; and
       (2) in subsection (b)--
       (A) in the first sentence of paragraph (2), by striking 
     ``subsection (a)(1) through (3)'' and inserting ``paragraphs 
     (1) through (4) of subsection (a)''; and
       (B) in the second sentence of paragraph (3)--
       (i) in subparagraph (R), by striking ``and'' at the end;
       (ii) in subparagraph (S), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(T) to pursue a long-term climate technology strategy 
     designed to demonstrate a variety of technologies by which 
     stabilization of greenhouse gases might be best achieved, 
     including accelerated research, development, demonstration, 
     and deployment of--
       ``(i) renewable energy systems;
       ``(ii) advanced fossil energy technology;
       ``(iii) advanced nuclear power plant design;
       ``(iv) fuel cell technology for residential, industrial, 
     and transportation applications;
       ``(v) carbon capture and sequestration practices and 
     technologies, including agricultural and forestry practices 
     that store and sequester carbon;
       ``(vi) efficient electrical generation, transmission, and 
     distribution technologies; and
       ``(vii) efficient end-use energy technologies.''.

             Subtitle C--Greenhouse Gas Emissions Database

     SEC. 1531. DEFINITIONS.

       In this subtitle:
       (1) Administering institution.--The term ``administering 
     institution'' means the institution selected under section 
     1532(c) to operate and administer the database.
       (2) Carbon dioxide equivalent.--The term ``carbon dioxide 
     equivalent'' means, with respect to each greenhouse gas, the 
     quantity of the greenhouse gas that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide.
       (3) Database.--The term ``database'' means the national 
     greenhouse gas emissions database established under section 
     1532(b).
       (4) Designated agencies.--The term ``designated agencies'' 
     means--
       (A) the Department of Energy;
       (B) the Department of Commerce; and
       (C) the Environmental Protection Agency.
       (5) Direct greenhouse gas emissions.--The term ``direct 
     greenhouse gas emissions'' means greenhouse gas emissions 
     directly emitted from a facility that is owned or controlled 
     by the reporting entity, including emissions from--
       (A) production of electricity, heat, or steam, or other 
     activities involving combustion in stationary equipment;
       (B) physical or chemical processing of materials;
       (C) equipment leaks, venting from equipment or facilities, 
     or other types of fugitive emissions (such as emissions from 
     piles, pits, and cooling towers); and
       (D) combustion of fuels in transportation vehicles or 
     equipment.
       (6) Entity.--The term ``entity'' means--
       (A) a person; or
       (B) an agency or instrumentality of the Federal Government 
     or State or local government.
       (7) Facility.--The term ``facility'' means a building, 
     structure, or installation located on any 1 or more 
     contiguous or adjacent properties of an entity in the United 
     States.
       (8) Farming operation.--The term ``farming operation'' has 
     the meaning given the term in section 101(21) of title 11, 
     United States Code.
       (9) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluorocarbons;
       (E) perfluorocarbons; and
       (F) sulfur hexafluoride.
       (10) Indirect greenhouse gas emissions.--The term 
     ``indirect greenhouse gas emissions'' means emissions that--
       (A) are a consequence of activities of a reporting entity; 
     but
       (B) occur from a source controlled by another entity.
       (11) Lead agency.--The term ``lead agency'' means the lead 
     agency selected under section 1532(a).
       (12) Reporting entity.--The term ``reporting entity'' means 
     an entity that submits a report under subsection (a) or (h) 
     of section 1533.
       (13) Sequestration.--The term ``sequestration'' means the 
     long-term separation, isolation, or removal of greenhouse 
     gases from the atmosphere, including through a biological or 
     geologic method such as reforestation or an underground 
     reservoir.
       (14) State.--The term `State' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (15) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 1532. NATIONAL GREENHOUSE GAS EMISSIONS DATABASE.

       (a) Designation of Lead Agency.--The President shall select 
     a lead agency from among the designated agencies for the 
     purpose of implementing this subtitle.
       (b) Establishment.--The head of the lead agency, in 
     consultation with the other designated agencies, States, the 
     private sector, and nongovernmental organizations concerned 
     with establishing standards for reporting of greenhouse gas 
     emissions, shall establish a national greenhouse gas 
     emissions database to collect emissions information reported 
     under section 1533 and emission reduction information 
     reported under section 1534.
       (c) Administration.--
       (1) In general.--The head of the lead agency shall enter 
     into a contract with a nonprofit institution to--
       (A) design and operate the database;
       (B) establish an advisory body with broad representation 
     from industry, agriculture, environmental groups, and State 
     and local governments to guide the development and management 
     of the database;
       (C) provide coordination and technical assistance for the 
     development of proposed protocols and methods to be published 
     by the Secretary under section 1535(a); and
       (D) certify organizations independent of reporting entities 
     to verify the data submitted by reporting entities, and audit 
     the plans and performance of certifying organizations.
       (2) Selection.--
       (A) In general.--The head of the lead agency shall award an 
     initial 5-year contract to the institution under paragraph 
     (1), subject to the procurement regulations of the lead 
     agency.
       (B) Considerations.--In determining which institution to 
     award a contract under subparagraph (A), the head of the lead 
     agency shall consider--
       (i) the technical expertise of each institution; and
       (ii) the ability of each institution to work with a broad 
     and diverse group of interested parties.
       (C) Renewability.--A contract under this paragraph may be 
     renewed for additional terms, based on the satisfactory 
     performance of the institution as determined by the head of 
     the lead agency.
       (d) Availability of Data to the Public.--The head of the 
     lead agency shall ensure that the administering institution 
     publishes all information in the national greenhouse gas 
     emissions database (including in electronic format on the 
     Internet), except with respect to facility-level emission 
     data in any case in which publishing the information would 
     disclose--
       (1) information vital to national security; or
       (2) confidential business information that--
       (A) cannot be derived from information that is otherwise 
     publicly available; and

[[Page S6944]]

       (B) would cause competitive harm if published.
       (e) Relationship to Other Greenhouse Gas Databases or 
     Reporting Requirements.--To the maximum extent practicable, 
     the head of the lead agency shall ensure coordination between 
     the national greenhouse gas emissions database and existing 
     and developing Federal and State greenhouse gas databases and 
     registries.
       (f) No Effect on Other Requirements.--Nothing in this 
     subtitle affects any existing requirements for reporting of 
     greenhouse gas emission data or other data relevant to 
     calculating greenhouse gas emissions.
       (g) Report to Congress.--If reporting is required under 
     section 1533(b)(2), the head of the lead agency shall, not 
     later than 180 days after the date on which the reporting is 
     required, submit to Congress a report that describes the need 
     for harmonization of legal requirements within the United 
     States relating to greenhouse gas reporting.

     SEC. 1533. GREENHOUSE GAS EMISSIONS REPORTING.

       (a) Voluntary Reporting.--
       (1) In general.--After the establishment of the greenhouse 
     gas emissions database under section 1532 and publication of 
     protocols under section 1535, an entity may voluntarily 
     submit to the administering institution, for inclusion in the 
     database, a report of greenhouse gas emissions in the United 
     States of the entity with respect to the preceding calendar 
     year.
       (2) Date of submission.--Each report under paragraph (1) 
     shall be submitted not later than the July 1 that follows the 
     end of the calendar year described in the report.
       (b) Review of Participation.--
       (1) In general.--On the date that is 4 years after the date 
     of enactment of this Act, the Director of Climate Change 
     Policy shall determine, after notice and public comment, 
     whether the emissions reported to the greenhouse gas database 
     for the most recent calendar year for which data are 
     available represent less than 60 percent of the national 
     aggregate greenhouse gas emissions from non-agricultural, 
     anthropogenic sources for that year.
       (2) Increased applicability of requirements.--If the 
     Director determines pursuant to paragraph (1) that emissions 
     reported to the greenhouse gas database for the most recent 
     year for which data are available represent less than 60-
     percent quantity described in paragraph (1) for that year, 
     each entity that exceeds the threshold for reporting under 
     subsection (c) shall submit to the administering institution, 
     not later than July 1 of each year thereafter, for inclusion 
     in the database, a report of greenhouse gas emissions in 
     the United States of the entity with respect to the 
     preceding calendar year in accordance with this section.
       (3) Resolution of disapproval.--The determination of the 
     Director of Climate Change Policy under paragraph (1) shall 
     be considered to be a major rule (as defined in section 
     804(2) of title 5, United States Code) subject to the 
     congressional disapproval procedure under section 802 of 
     title 5, United States Code.
       (c) Threshold for Reporting.--
       (1) In general.--An entity shall submit a report under 
     subsection (b)(2) for greenhouse gas emissions if, in the 
     relevant calendar year, 1 of the following exceeds 10,000 
     metric tons of carbon dioxide equivalent:
       (A) The direct greenhouse gas emissions of any facility of 
     the entity located in the United States.
       (B) The indirect greenhouse gas emissions of any facility 
     of the entity located in the United States that are 
     associated with generation of purchased or imported 
     electricity, heat, or steam by the entity (excluding 
     electricity purchased for resale).
       (C) After publication of the relevant protocols under 
     section 1535(a), the total calculated greenhouse gas 
     emissions imputed under paragraph (3) to an entity reporting 
     under that paragraph.
       (2) Agricultural exemption.--Greenhouse gas emissions from 
     a farming operation, feedlot, or forest owned or leased by an 
     entity shall not be considered in determining whether the 
     entity exceeds the threshold under paragraph (1).
       (3) Threshold adjustment.--
       (A) Increase.--The head of the lead agency, by rule, may 
     increase the 10,000 metric ton reporting threshold under 
     paragraph (1) to a higher threshold if the head of the lead 
     agency determines that the reports under this section at the 
     higher threshold will include at least 80 percent of 
     greenhouse gas emissions in the United States.
       (B) Decrease.--The head of the lead agency may not decrease 
     the reporting threshold under paragraph (1) to a value lower 
     than 10,000 metric tons of carbon dioxide equivalent.
       (d) Content of Reports.--Each greenhouse gas report under 
     this section shall--
       (1) express greenhouse gas emissions in metric tons of each 
     greenhouse gas and in metric tons of the carbon dioxide 
     equivalent of each greenhouse gas;
       (2) report (except de minimis emissions)--
       (A) direct greenhouse gas emissions; and
       (B) indirect greenhouse gas emissions associated with the 
     generation of electricity, heat, or steam that is purchased 
     or imported by a reporting entity, for use in its facility 
     (but not including electricity purchased for resale), from a 
     source owned or controlled by another entity;
       (3) provide the information under paragraph (2)--
       (A) on an entity-wide basis; and
       (B) subject to paragraph (4), on a facility-wide basis for 
     each facility owned or controlled by the entity;
       (4) report emissions from a facility with shared ownership 
     or control based on the control of the facility, consistent 
     with the treatment of the facility by the entities for 
     financial reporting purposes under generally accepted 
     accounting principles of the United States;
       (5) contain any adjustments to greenhouse gas emission 
     reports from prior years to take into account--
       (A) errors that significantly affect the quantity of 
     greenhouse gases in the prior greenhouse gas emissions 
     report;
       (B) changes in protocols or methods for calculating 
     greenhouse gas emissions under section 1535(a);
       (C) the need to maintain data comparability from year to 
     year in the event of significant structural changes in the 
     organization of the reporting entity; or
       (D) any transfer of a facility from the control of 1 entity 
     to another;
       (6) include a statement describing the reasons for--
       (A) any adjustment under paragraph (5); and
       (B) any significant change between the greenhouse gas 
     emissions report for the preceding year and the greenhouse 
     gas emissions reported for the current year;
       (7) include an appropriate certification, signed by a 
     senior official with management responsibility for the 1 or 
     more persons completing the report, regarding the accuracy 
     and completeness of the report; and
       (8) be reported electronically to the administering 
     institution in such form and to such extent as may be 
     required by the institution or the head of the lead agency.
       (e) De Minimis Emissions.--The head of the lead agency, by 
     rule, shall specify the level of greenhouse gas emissions 
     from a source within a facility that shall be considered de 
     minimis for purpose of subsection (d)(2).
       (f) Verification of Report Required.--Before including the 
     information from a greenhouse gas emission report in the 
     database, the administering institution shall--
       (1) verify the completeness and accuracy of the emission 
     report using information provided under section 1535(b)(1); 
     or
       (2) require the verification of the completeness and 
     accuracy of the emissions report by a certified person under 
     section 1535(b)(2).
       (g) Prohibition on Certain Adjustments to Prior-Year 
     Emission Data.--An entity may not adjust a greenhouse gas 
     emission report from a prior year under subsection (d)(5) in 
     order to account for changes by the entity that are the 
     result of normal business growth or decline, including--
       (1) increases or decreases in production output;
       (2) plant openings or closures; or
       (3) changes in the mix of products manufactured or sold by 
     the entity.
       (h) Voluntary Reporting of Earlier Emissions.--
       (1) In general.--An entity that submits a report under this 
     section may submit to the administering institution, for 
     inclusion in the national greenhouse gas emissions database, 
     a greenhouse gas emission report for the entity with respect 
     to 1 or more calendar years prior to 2006, if the report 
     meets the requirements of subsections (c) and (d) and section 
     1534.
       (2) Transition assistance to entities in existing 
     program.--The head of the lead agency may provide financial 
     assistance to an entity that submitted a report on greenhouse 
     gas emissions under section 1605(b) of the Energy Policy Act 
     of 1992 (42 U.S.C. 13385(b)), for calendar years prior to 
     2006, for purpose of improving the report so that the report 
     meets the requirements of subsections (c) and (d) and section 
     1534.
       (i) Continuity of Voluntary Reporting.--An entity that 
     reports emissions under subsection (a) or (b) that fails to 
     submit a report in any year after submission of the first 
     report of the entity shall be prohibited from including 
     emissions or reductions reported under this subtitle in the 
     calculation of the baseline of the entity in future years.
       (j) Voluntary Reporting of Other Indirect Emissions.--An 
     entity that submits a greenhouse gas emission report under 
     this section may voluntarily include in the report, as 
     separate estimates prepared in accordance with the protocols 
     published under section 1535, other indirect greenhouse gas 
     emissions.
       (k) Continuity of Information on Facilities in Database.--
     If ownership or control of a facility for which emissions 
     were included in a report under subsection (b)(2) is 
     transferred to another entity, any entity subsequently having 
     ownership or control of the facility shall submit a 
     greenhouse gas emissions report regarding the transferred 
     facility, even if the entity does not otherwise exceed the 
     threshold for reporting under subsection (c).

     SEC. 1534. GREENHOUSE GAS EMISSION REDUCTIONS AND 
                   SEQUESTRATION REPORTING.

       (a) In General.--After the establishment of the greenhouse 
     gas emission database under section 1532 and publication of 
     protocols under section 1535, an entity may voluntarily 
     submit to the administering institution, for inclusion in the 
     database, a report of greenhouse gas emission reductions or 
     sequestration resulting from projects carried out by the 
     entity during the preceding year for--
       (1) reduction of direct greenhouse gas emissions; or
       (2) sequestration of a greenhouse gas.

[[Page S6945]]

       (b) Date of Submission.--Each report shall be submitted by 
     the July 1 that follows the end of the calendar year 
     described in the report.
       (c) Project Types.--Projects referred to in subsection (a) 
     may include projects relating to--
       (1) fuel switching;
       (2) energy efficiency improvements;
       (3) use of renewable energy;
       (4) use of combined heat and power systems;
       (5) management of cropland, grassland, or grazing land;
       (6) a forestry activity that increases forest carbon stocks 
     or reduces forest carbon emissions;
       (7) methane recovery;
       (8) reduction of natural gas venting or flaring; or
       (9) carbon capture and sequestration.
       (d) Verification of Report Required.--Before including the 
     information from a report under subsection (a) in the 
     database, the administering institution shall--
       (1) verify the completeness and accuracy of the report 
     using information provided under section 1535(b)(1); or
       (2) require the verification of the completeness and 
     accuracy of the report by a certified person under section 
     1535(b)(2).
       (e) Required Accompanying Information.--An entity that 
     submits a report under subsection (a) shall include 
     sufficient information to verify under section 1535(b) that 
     the report represents--
       (1) in the case of a report of direct greenhouse gas 
     emission reductions--
       (A) actual reductions in direct greenhouse gas emissions of 
     the entity--
       (i) relative to historic emissions levels of the entity; 
     and
       (ii) after accounting for any increases in direct or 
     indirect greenhouse gas emissions of the entity; or
       (B) in the case of a reported reduction that exceeds the 
     entity-wide net reduction of direct greenhouse gas emissions, 
     adjusted so as not to exceed the net reduction; and
       (2) in the case of a report of greenhouse gas 
     sequestration, actual increases in net sequestration, taking 
     into consideration the total systems use of materials and 
     energy in carrying out the sequestration.
       (f) Projects Prior to Publication Protocols.--
       (1) In general.--Subject to paragraph (2), not later than 
     July 1 of the calendar year following publication of 
     protocols under section 1535, an entity may submit to the 
     administering institution, for inclusion in the database, a 
     report of greenhouse gas emission reductions or sequestration 
     resulting from projects, carried out by the entity during the 
     period beginning January 1, 1990, and ending on the date of 
     publication of the protocols for--
       (A) reduction of direct greenhouse gas emissions; or
       (B) sequestration of a greenhouse gas.
       (2) Conditions for entry.--The information from a report 
     under this subsection shall be entered into the database only 
     if the report meets the requirements of subsections (c) and 
     (d).
       (g) Identification and Tracking of Greenhouse Gas Reduction 
     Projects.--For each verified project entered in the database 
     under this section, the administering institution shall 
     provide to the entity reporting the project a unique 
     identifier to allow for--
       (1) the registration of emission reductions associated with 
     the project, in a quantity not to exceed the entity-wide net 
     emission reductions of the entity reporting the project 
     during the same period;
       (2) the transfer of those reductions through voluntary 
     private or other transactions; and
       (3) tracking of transfers under paragraph (2).

     SEC. 1535. DATA QUALITY AND VERIFICATION.

       (a) Protocols and Methods.--
       (1) In general.--The head of the lead agency, after taking 
     into account the recommendations of the administering 
     institution, shall, by rule, establish protocols and methods 
     to ensure completeness, consistency, transparency, and 
     accuracy of data on greenhouse gas emissions and emissions 
     reductions submitted to the database that include--
       (A) accounting and reporting standards for greenhouse gas 
     emissions and greenhouse gas emission reductions;
       (B) standardized methods for calculating greenhouse gas 
     emissions in specific industries from other readily available 
     and reliable information, such as energy consumption, 
     materials consumption, production data, or other relevant 
     activity data;
       (C) standardized methods of estimating greenhouse gas 
     emissions (along with information on the accuracy of the 
     estimations), for cases in which the head of the lead agency 
     determines that methods under subparagraph (B) are not 
     feasible;
       (D) methods to avoid double-counting of greenhouse gas 
     emissions, or greenhouse gas emission reductions, within a 
     single major category of emissions, such as direct greenhouse 
     gas emissions;
       (E) protocols to prevent an entity from avoiding the 
     reporting requirements of this subtitle by reorganization 
     into multiple entities or by outsourcing operations or 
     activities that emit greenhouse gases;
       (F) protocols for verification of data on greenhouse gas 
     emissions, and greenhouse gas emission reductions, by 
     reporting entities and verification organizations independent 
     of reporting entities; and
       (G) protocols necessary for the database to maintain valid 
     and reliable information on baselines of entities so that, in 
     the event of any future action by Congress to require 
     entities, individually or collectively, to reduce greenhouse 
     gas emissions, Congress will be able--
       (i) to take into account that information; and
       (ii) to avoid enacting legislation that penalizes entities 
     for achieving and reporting reductions.
       (2) Best practices.--The protocols and methods developed 
     under paragraph (1) shall conform, to the maximum extent 
     practicable, to the best practices that have the greatest 
     support of experts in the field.
       (3) Outreach program.--The administering institution shall 
     conduct an outreach program to provide information to all 
     reporting entities and the public on the protocols and 
     methods developed under this subsection.
       (b) Verification.--
       (1) Information by reporting entities.--Each reporting 
     entity shall--
       (A) provide information sufficient for the administering 
     institution to verify, in accordance with the protocols and 
     methods developed under subsection (a), that the greenhouse 
     gas emissions, or greenhouse gas emission reductions, of the 
     reporting entity have been completely and accurately 
     reported; and
       (B) ensure the submission or retention of data sources, 
     information on internal control activities, information on 
     assumptions used in reporting emissions, uncertainty 
     analyses, and other relevant data to facilitate the 
     verification of reports submitted to the database.
       (2) Independent third-party verification.--A reporting 
     entity may--
       (A) obtain verification of the completeness and accuracy of 
     the greenhouse gas emissions report, or greenhouse gas 
     emissions reduction report, of the reporting entity from a 
     person independent of the reporting entity that has been 
     certified according to the standards issued under paragraph 
     (3); and
       (B) present the results of the verification under 
     subparagraph (A) to the administering institution in lieu of 
     verification by the administering institution under paragraph 
     (1).
       (3) Certification of independent verification 
     organizations.--
       (A) In general.--The head of the lead agency shall, by 
     rule, establish certification and audit standards to be 
     applied by the administering institution in certifying 
     persons who verify greenhouse gas emission reports, or 
     greenhouse gas emission reductions reports, under paragraph 
     (2).
       (B) Conflicts of interest.--The standards established under 
     subparagraph (A) shall prohibit conflicts of interest on the 
     part of certified persons.

     SEC. 1536. ANNUAL SUMMARY REPORT.

       Not later than January 1, 2006, and annually thereafter, 
     the head of the lead agency shall publish an annual summary 
     report on the database that includes--
       (1) a report on the quantity of the total greenhouse gas 
     emissions and emission reductions included in the database, 
     and the fraction of total greenhouse gas emissions in the 
     United States reported to the database, relative to the year 
     covered by the report (if applicable);
       (2) analyses, by entity and sector of the economy of the 
     United States, of the emissions and emission reductions in 
     paragraph (1), including a comparison to total greenhouse gas 
     emissions in the United States by all sectors of the economy;
       (3) information on the operations of the database, 
     including the development of protocols and methods during the 
     year covered by the report; and
       (4) a summary of the views of the advisory board under 
     section 1532(c)(1)(B) on the operations and effectiveness of 
     the database during the year covered by the report.

     SEC. 1537. ENFORCEMENT.

       The head of the lead agency may bring a civil action in 
     United States district court against an entity that fails to 
     comply with a requirement of this subtitle, or a rule 
     promulgated under this subtitle, to impose a civil penalty of 
     not more than $25,000 for each day that the failure to comply 
     continues.

                     Subtitle D--Research Programs

                CHAPTER 1--DEPARTMENT OF ENERGY PROGRAMS

     SEC. 1541. DEFINITION OF SECRETARY.

       In this chapter, the term ``Secretary'' means the Secretary 
     of Energy, acting through the Office of Science of the 
     Department of Energy.

     SEC. 1542. DEPARTMENT OF ENERGY GLOBAL CHANGE SCIENCE 
                   RESEARCH.

       (a) In General.--The Secretary shall conduct a 
     comprehensive research program--
       (1) to increase understanding of the global climate system; 
     and
       (2) to investigate and analyze the effects of energy 
     production and use on that system.
       (b) Program Elements.--The program under this chapter shall 
     include--
       (1) research and modeling activities on the radiation 
     balance from the surface of the Earth to the upper limit of 
     the atmosphere, including the effects of aerosols and clouds;
       (2) research and modeling activities--
       (A) to investigate and understand the global carbon cycle, 
     including the role of the terrestrial biosphere as a source 
     or sink for carbon dioxide; and
       (B) to develop, test, and improve carbon-cycle models;

[[Page S6946]]

       (3)(A) research activities to understand the scales of 
     response of complex ecosystems to environmental changes, 
     including identification of the underlying causal mechanisms 
     and pathways of environmental changes and the ways in which 
     those mechanisms and pathways are linked; and
       (B) research and modeling activities on the response of 
     terrestrial ecosystems to changes in climate, atmospheric 
     composition, and land use;
       (4) research and modeling activities to develop integrated 
     assessments of the economic, social, and environmental 
     implications of climate change and policies relating to 
     climate change, with emphasis on--
       (A) improving the resolution of models for integrated 
     assessments on a regional basis;
       (B) developing next-generation models and testing those 
     models as pilots on selected regional areas (including States 
     and territories of the United States in the Pacific, on the 
     Gulf of Mexico, or in agricultural or forested areas of the 
     continental United States);
       (C) developing and improving models for technology 
     innovation and diffusion; and
       (D) developing and improving models of the economic costs 
     and benefits of climate change and policies relating to 
     climate change; and
       (5) development of high-end computational resources, 
     information technologies, and data assimilation methods--
       (A) to carry out the program under this chapter;
       (B) to make more effective use of large and distributed 
     data sets and observational data streams; and
       (C) to increase the availability and utility of climate 
     change and energy simulations to researchers and policy 
     makers.
       (c) Education and Information Dissemination.--
       (1) In general.--The Secretary, in collaboration with 
     similar programs in other Federal agencies, shall include 
     education and training of undergraduate and graduate students 
     as an integral part of the programs under this chapter.
       (2) Analysis center.--The Secretary shall support a Carbon 
     Dioxide Information and Analysis Center--
       (A) to serve as a resource for researchers and others 
     interested in global climate change; and
       (B) to accommodate data and information requests relating 
     to the greenhouse effect and global climate change.

     SEC. 1543. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out this chapter, to remain available 
     until expended--
       (1) $150,000,000 for fiscal year 2006;
       (2) $175,000,000 for fiscal year 2007;
       (3) $200,000,000 for fiscal year 2008;
       (4) $230,000,000 for fiscal year 2009; and
       (5) $266,000,000 for fiscal year 2010.
       (b) Limitation on Funds.--Funds authorized to be 
     appropriated under this section shall not be used for the 
     development, demonstration, or deployment of technology to 
     reduce, avoid, or sequester greenhouse gas emissions.

               CHAPTER 2--DEPARTMENT OF COMMERCE PROGRAMS

     SEC. 1551. DEFINITION OF SECRETARY.

       In this chapter, the term ``Secretary'' means the Secretary 
     of Commerce.

     SEC. 1552. ABRUPT CLIMATE CHANGE RESEARCH PROGRAM.

       (a) Definition of Abrupt Climate Change.--In this section, 
     the term ``abrupt climate change'' means a change in the 
     climate that occurs so rapidly or unexpectedly that human or 
     natural systems have difficulty adapting to the climate as 
     changed.
       (b) Establishment of Program.--The Secretary shall 
     establish in the Office of Oceanic and Atmospheric Research 
     of the National Oceanic and Atmospheric Administration, and 
     shall carry out, a program of scientific research on abrupt 
     climate change.
       (c) Purposes of Program.--The purposes of the program are--
       (1) to develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order to 
     sufficiently identify and describe past instances of abrupt 
     climate change;
       (2) to improve understanding of thresholds and 
     nonlinearities in geophysical systems related to the 
     mechanisms of abrupt climate change;
       (3) to incorporate the mechanisms into advanced geophysical 
     models of climate change; and
       (4) to test the output of the models against an improved 
     global array of records of past abrupt climate changes.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section, to remain available until expended--
       (1) $20,000,000 for fiscal year 2006;
       (2) $22,000,000 for fiscal year 2007;
       (3) $24,000,000 for fiscal year 2008;
       (4) $26,000,000 for fiscal year 2009; and
       (5) $28,000,000 for fiscal year 2010.

     SEC. 1553. REGIONAL CLIMATE ASSESSMENT AND ADAPTATION.

       (a) In General.--The Secretary shall establish in the 
     Department of Commerce a National Climate Vulnerability and 
     Adaptation Program for regional impacts related to increasing 
     concentrations of greenhouse gases in the atmosphere and 
     climate variability.
       (b) Coordination.--In designing the program described in 
     subsection (a), the Secretary shall consult with appropriate 
     Federal, State, tribal, and local government entities.
       (c) Regional Vulnerability Assessments.--The program 
     shall--
       (1) evaluate, based on information developed under this 
     subtitle, under the National Climate Program Act (15 U.S.C. 
     2901 et seq.), and by the global climate modeling community, 
     regional vulnerability to phenomena associated with climate 
     change and climate variability, including--
       (A) increases in severe weather events;
       (B) sea level rise and shifts in the hydrological cycle;
       (C) natural hazards, including tsunami, drought, flood, and 
     fire; and
       (D) alteration of ecological communities at the ecosystem 
     or watershed level; and
       (2) build upon information developed in the scientific 
     assessments prepared under the Global Change Research Act of 
     1990 (15 U.S.C. 2921 et seq.).
       (d) Preparedness Recommendations.--Not later than 2 years 
     after the date of enactment of this Act, the Secretary shall 
     submit to Congress a report that identifies and recommends 
     implementation and funding strategies for short- and long-
     term actions that may be taken at the national, regional, 
     State, and local level--
       (1) to minimize threats to human life and property;
       (2) to improve resilience to hazards;
       (3) to minimize economic impacts; and
       (4) to reduce threats to critical biological and ecological 
     processes.
       (e) Information and Technology.--The Secretary shall--
       (1) make available appropriate information, technologies, 
     and products that will assist national, regional, State, and 
     local efforts to reduce loss of life and property from 
     increased concentrations of greenhouse gases and climate 
     variability; and
       (2) coordinate dissemination of such technologies and 
     products.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $4,500,000 for each of fiscal years 2006 through 2010.

     SEC. 1554. COASTAL VULNERABILITY AND ADAPTATION.

       (a) Definitions.--Any term used in this section that is 
     defined in section 304 of the Coastal Zone Management Act of 
     1972 (16 U.S.C. 1453) has the meaning given the term in that 
     section.
       (b) Regional Assessments.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary, in consultation with 
     appropriate Federal, State, tribal, and local governmental 
     entities, shall conduct regional assessments of the 
     vulnerability of coastal areas to hazards associated with 
     climate change, climate variability, sea level rise, and 
     fluctuation of Great Lakes water levels.
       (2) Development.--The Secretary may consult with the 
     governments of Canada and Mexico as appropriate in developing 
     regional assessments.
       (3) Preparation.--In preparing the regional assessments, 
     the Secretary shall--
       (A) collect and compile current information on climate 
     change, sea level rise, natural hazards, and coastal erosion 
     and mapping; and
       (B) specifically address impacts on Arctic regions and the 
     Central, Western, and South Pacific regions.
       (4) Evaluation.--The regional assessments shall include an 
     evaluation of--
       (A) social impacts associated with threats to and potential 
     losses of housing, communities, and infrastructure;
       (B) physical impacts, including coastal erosion, flooding 
     and loss of estuarine habitat, saltwater intrusion of 
     aquifers and saltwater encroachment, and species migration; 
     and
       (C) economic impact on regional, State, and local 
     economies, including the impact on abundance or distribution 
     of economically important living marine resources.
       (c) Coastal Adaptation Plan.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a national coastal adaptation plan, composed of individual 
     regional adaptation plans that recommend targets and 
     strategies to address coastal impacts associated with climate 
     change, sea level rise, or climate variability.
       (2) Development.--The national coastal adaptation plan 
     shall be developed with the participation of other Federal, 
     State, tribal, and local government agencies that will be 
     critical in the implementation of the plan at the State, 
     tribal, and local levels.
       (3) Regional plans.--The regional plans covered by the 
     national coastal adaptation plan shall--
       (A) be based on the information contained in the regional 
     assessments; and
       (B) identify special needs associated with Arctic areas and 
     the Central, Western, and South Pacific regions.
       (4) Recommendations.--The national coastal adaptation plan 
     shall recommend both short- and long-term adaptation 
     strategies, including recommendations regarding--
       (A) Federal flood insurance program modifications;
       (B) areas that have been identified as high risk through 
     mapping and assessment;
       (C) mitigation incentives, including rolling easements, 
     strategic retreat, Federal or State acquisition in fee simple 
     or other interest in land, construction standards, and 
     zoning;
       (D) land and property owner education;

[[Page S6947]]

       (E) economic planning for small communities dependent upon 
     affected coastal resources, including fisheries; and
       (F) funding requirements and mechanisms.
       (d) Technical Planning Assistance.--
       (1) In general.--The Secretary, acting through the National 
     Ocean Service, shall establish a coordinated program to 
     provide technical planning assistance and products to coastal 
     State and local governments as the coastal States and local 
     governments develop and implement adaptation or mitigation 
     strategies and plans.
       (2) State and local plans.--Products, information, tools 
     and technical expertise generated from the development of the 
     regional assessments and the regional adaptation plans shall 
     be made available to coastal State and local governments to 
     develop State and local plans.
       (e) Coastal Adaptation Grants.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall provide grants of financial assistance to coastal 
     States with Federally approved coastal zone management 
     programs to develop and begin implementing coastal adaptation 
     programs.
       (2) Eligibility.--To be eligible to receive a grant under 
     paragraph (1), a coastal State shall provide a Federal-to-
     State match--
       (A) in the first fiscal year of the program, of 4 to 1;
       (B) in the second fiscal year of the program, of 2.3 to 1;
       (C) in the third fiscal year of the program, of 2 to 1; and
       (D) in each subsequent fiscal year, of 1 to 1.
       (3) Formula.--Distribution of funds under this subsection 
     to coastal States shall be based on the formula established 
     under section 306(c) of the Coastal Zone Management Act of 
     1972 (16 U.S.C. 1455(c)), adjusted in consultation with the 
     States as necessary to provide assistance to particularly 
     vulnerable coastlines.
       (f) Coastal Response Pilot Program.--
       (1) In general.--The Secretary shall establish a 4-year 
     pilot program to provide financial assistance to coastal 
     communities that--
       (A) are most adversely affected by the impact of climate 
     change or climate variability; and
       (B) are located in States with Federal-approved coastal 
     zone management programs.
       (2) Eligible projects.--A project is eligible for financial 
     assistance under the pilot program if the project--
       (A) will restore or strengthen coastal resources, 
     facilities, or infrastructure that have been damaged by the 
     impact of climate change or climate variability, as 
     determined by the Secretary;
       (B) meets the requirements of the Coastal Zone Management 
     Act of 1972 (16 U.S.C. 1451 et seq.) and is consistent with 
     the coastal zone management plan of the State in which the 
     project will be carried out; and
       (C) will not cost more than $100,000 for each project.
       (3) Funding share.--
       (A) In general.--The Federal funding share of any project 
     under this subsection may not exceed 75 percent of the total 
     cost of the project.
       (B) Administration.--In carrying out this paragraph--
       (i) the Secretary may take into account in-kind 
     contributions and other non-cash support of any project to 
     determine the Federal funding share for that project; and
       (ii) the Secretary may waive the requirements of this 
     paragraph for a project in a community if--

       (I) the Secretary determines that the project is important; 
     and
       (II) the economy and available resources of the community 
     in which the project is to be conducted are insufficient to 
     meet the non-Federal share of the cost of the project.

       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary--
       (1) to carry out subsections (b) through (d), $5,000,000 
     for each of fiscal years 2006 through 2010;
       (2) for coastal adaptation grants under subsection (e), 
     $5,000,000 for each of fiscal years 2006 through 2010; and
       (3) to carry out the pilot program established under 
     subsection (f), $3,000,000 for each of fiscal years 2006 
     through 2010.

     SEC. 1555. FORECASTING PROJECTS.

       (a) In General.--The Administrator of the National 
     Aeronautics and Space Administration and the Administrator of 
     the National Oceanic and Atmospheric Administration shall 
     establish, through the Coastal Services Center of the 
     National Oceanic and Atmospheric Administration, a program of 
     grants for competitively awarded 3-year pilot projects to 
     explore the integrated use of sources of remote sensing and 
     other geospatial information to address State, local, 
     regional, and tribal agency needs to forecast a plan for 
     adaptation to coastal zone and land use changes that may 
     result as a consequence of global climate change or climate 
     variability.
       (b) Preferred Projects.--In awarding grants under this 
     section, the Center shall give preference to projects that--
       (1) focus on areas that are most sensitive to the 
     consequences of global climate change or climate variability;
       (2) make use of existing public or commercial data sets;
       (3) integrate multiple sources of geospatial information 
     (including geographic information system data, satellite-
     provided positioning data, and remotely sensed data) in 
     innovative ways;
       (4) offer diverse, innovative approaches that may serve as 
     models for establishing a future coordinated framework for 
     planning strategies for adaptation to coastal zone and land 
     use changes related to global climate change or climate 
     variability;
       (5) include funds or in-kind contributions from non-Federal 
     sources;
       (6) involve the participation of commercial entities that 
     process raw or lightly processed data, often merging that 
     data with other geospatial information, to create data 
     products that have significant value added to the original 
     data; and
       (7) considered together, demonstrate as diverse a set of 
     public sector applications as practicable.
       (c) Opportunities.--In carrying out this section, the 
     Center shall seek opportunities to assist--
       (1) in the development of commercial applications 
     potentially available from the remote sensing industry; and
       (2) State, local, regional, and tribal agencies in applying 
     remote sensing and other geospatial information technologies 
     for management and adaptation to coastal and land use 
     consequences of global climate change or climate variability.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrators described in 
     subsection (a) to carry out this section--
       (1) $15,000,000 for fiscal year 2006;
       (2) $17,500,000 for fiscal year 2007;
       (3) $20,000,000 for fiscal year 2008;
       (4) $22,500,000 for fiscal year 2009; and
       (5) $25,000,000 for fiscal year 2010.

     SEC. 1556. INTERNATIONAL PACIFIC RESEARCH AND COOPERATION.

       (a) Establishment.--
       (1) In general.--The Secretary, in cooperation with the 
     Administrator of the National Aeronautics and Space 
     Administration, shall conduct international research in the 
     Pacific region that will increase understanding of the nature 
     and predictability of climate variability in the Asia-Pacific 
     sector, including regional aspects of global environmental 
     change.
       (2) Cooperation.--Research activities under this section 
     shall be conducted in cooperation with other nations of the 
     Pacific region.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section for fiscal year 
     2006, to remain available until expended--
       (1) $2,000,000 to the National Oceanic and Atmospheric 
     Administration, including $500,000 for the Pacific El Nino-
     Southern Oscillation Applications Center; and
       (2) $1,500,000 to the National Aeronautics and Space 
     Administration.

     SEC. 1557. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
                   PROGRAMS.

       (a) Establishment, Functions, and Activities.--Section 2(c) 
     of the National Institute of Standards and Technology Act (15 
     U.S.C. 272(c)) is amended--
       (1) in paragraph (21), by striking ``and'' at the end;
       (2) by redesignating paragraph (22) as paragraph (23); and
       (3) by inserting after paragraph (21) the following:
       ``(22) perform research to develop enhanced measurements, 
     calibrations, standards, and measurement technologies which 
     will enable the reduced production in the United States of 
     greenhouse gases associated with global warming, including 
     carbon dioxide, methane, nitrous oxide, ozone, 
     perfluorocarbons, hydrofluorocarbons, and sulfur 
     hexafluoride; and''.
       (b) Programs Related to Climate Change.--The National 
     Institute of Standards and Technology Act (15 U.S.C. 271 et 
     seq.) is amended--
       (1) by redesignating section 32 as section 33; and
       (2) by inserting after section 31 the following:

     ``SEC. 32. PROGRAMS RELATED TO CLIMATE CHANGE.

       ``(a) In General.--The Director shall establish a program 
     to perform and support research on measurements, 
     calibrations, data, models, and reference material standards 
     with the goal of providing scientific and technical knowledge 
     and generally recognized measurements, procedures, analytical 
     tools, software, measurement technologies, and measurement 
     standards applicable to the understanding, monitoring, and 
     control of greenhouse gases.
       ``(b) Program Execution and Coordination.--
       ``(1) In general.--The Director may conduct the program 
     under this section through--
       ``(A) the National Measurement Laboratories or other 
     appropriate elements of the Institute; or
       ``(B) grants, contracts, and cooperative agreements with 
     appropriate entities.
       ``(2) Voluntary laboratory accreditation program.--The 
     Director may establish a voluntary laboratory accreditation 
     program (including specific calibration and test standards, 
     methods, and protocols) to meet the need for accreditation in 
     the measurement of greenhouse gases.
       ``(3) Consultation.--The Director shall carry out the 
     program under this section in consultation with appropriate 
     Federal agencies, including the Environmental Protection 
     Agency, the Department of Energy, the

[[Page S6948]]

     National Aeronautics and Space Administration, the National 
     Oceanic and Atmospheric Administration, and the National 
     Science Foundation.''.

                    CHAPTER 3--INTERAGENCY PROGRAMS

     SEC. 1561. GLOBAL CHANGE RESEARCH.

       (a) Findings.--Section 101(a) of the Global Change Research 
     Act of 1990 (15 U.S.C. 2931(a)) is amended by adding at the 
     end the following:
       ``(7) The present rate of advance in research and 
     development, and the application of those advances, is 
     inadequate and new developments must be incorporated rapidly 
     into services for the benefit of the public.
       ``(8) The United States lacks adequate infrastructure and 
     research to meet national climate monitoring and prediction 
     needs.''.
       (b) Updating Authorization for Committee Structure.--
       (1) Definitions.--Section 2 of the Global Change Research 
     Act of 1990 (15 U.S.C. 2921) is amended--
       (A) in paragraph (1), by inserting before the semicolon the 
     following: ``or a successor committee''; and
       (B) in paragraph (2), by inserting before the semicolon the 
     following: ``or a successor body''.
       (2) Committee on earth and environmental sciences.--Section 
     102 of the Global Change Research Act of 1990 (15 U.S.C. 
     2932) is amended--
       (A) in subsection (b), by striking the last sentence and 
     inserting ``The representatives shall be the Deputy Secretary 
     or the designee of the Deputy Secretary (or, in the case of 
     an agency other than a department, the deputy head of that 
     agency or the designees of the deputy).'';
       (B) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively;
       (C) by inserting after subsection (c) the following:
       ``(d) Subcommittees and Working Groups.--
       ``(1) In general.--There shall be a Subcommittee on Global 
     Change Research, which shall carry out such functions of the 
     Committee as are assigned by the Committee.
       ``(2) Other subcommittees and working groups.--The 
     Committee may establish such additional subcommittees and 
     working groups as the Committee considers appropriate.''; and
       (D) in subsection (f) (as redesignated by subparagraph 
     (B)), by striking paragraph (6) and inserting the following:
       ``(6) routinely consult with actual and potential users of 
     the results of the Program to assess information needs and 
     ensure that the results are useful in developing 
     international, national, regional, and local policy responses 
     to global change; and''.
       (c) National Global Change Research Plan.--Section 104 of 
     the Global Change Research Act of 1990 (15 U.S.C. 2934) is 
     amended--
       (1) in the last sentence of subsection (a), by inserting 
     before the period ``, including not later than 180 days after 
     the date of enactment of the Energy and Climate Change Act of 
     2005'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by inserting ``short-term and long-term'' before 
     ``goals''; and
       (ii) by striking ``usable information on which to base 
     policy decisions relating to'' and inserting ``information 
     relevant and readily usable by Federal, State, tribal, and 
     local decision makers and other end-users, for the 
     formulation of effective decisions and strategies for 
     measuring, predicting, preventing, mitigating, and adapting 
     to'';
       (B) in paragraph (6)(D), by striking ``and'' at the end;
       (C) by redesignating paragraph (7) as paragraph (9); and
       (D) by inserting after subsection (6) the following:
       ``(7) evaluate and explain the accuracy of provided 
     predictions in a manner that will enhance use of the 
     predictions by Federal, State, tribal, and local decision 
     makers and other end-users of the information; and
       ``(8) identify the categories of decision makers and 
     describe how the program (including modeling capabilities) 
     will develop decision support capabilities for the decision 
     makers described in paragraph (7); and'';
       (3) in subsection (c), by adding at the end the following:
       ``(6) Research necessary to monitor and predict societal 
     and ecosystem impacts, to design adaptation and mitigation 
     strategies, and to understand the costs and benefits of 
     climate change and related response options.
       ``(7) Methods for integrating information to provide 
     predictive and other tools for planning and decisionmaking by 
     governments, communities, and the private sector.''; and
       (4) in subsection (d)--
       (A) in paragraph (2), by striking ``and'' at the end; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) conduct routine assessments of the information needs 
     of Federal, State, tribal, and local policy makers and other 
     end-users;
       ``(4) combine and interpret data from various sources to 
     produce information readily usable by local, tribal, State, 
     and Federal policymakers and other end-users attempting to 
     formulate effective decisions and strategies for preventing, 
     mitigating, and adapting to the effects of global change;
       ``(5) develop methods for improving modeling and predictive 
     capabilities and assessment methods to guide national, 
     regional, and local planning and decisionmaking on land use, 
     hazards related to water (including flooding, storm surges, 
     and sea-level rise), and related issues; and
       ``(6) establish a common assessment and modeling framework 
     that may be used in both research and operations to predict 
     and assess the vulnerability of natural and managed 
     ecosystems and human society in the context of other 
     environmental and social changes.''.
       (d) Research Grants.--Section 105 of the Global Change 
     Research Act of 1990 (15 U.S.C. 2935) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Research Grants.--
       ``(1) List of priority research areas.--The Committee shall 
     develop a list of priority areas for research and development 
     on climate change that are not being addressed by Federal 
     agencies.
       ``(2) Transmission of list.--The Director of the Office of 
     Science and Technology Policy shall transmit the list to the 
     National Science Foundation.
       ``(3) Funding.--
       ``(A) Budget request.--The National Science Foundation 
     shall include funding for research in the priority areas on 
     the list developed under paragraph (1) as part of the annual 
     budget request for integrative activities of the National 
     Science Foundation.
       ``(B) Authorization.--For fiscal year 2006 and each 
     subsequent fiscal year, to carry out research in the priority 
     areas, there is authorized to be appropriated to the National 
     Science Foundation not less than $17,000,000, to be managed 
     through the Science and Technology Policy Institute.''.
       (e) Scientific Assessment.--Section 106 of the Global 
     Change Research Act of 1990 (15 U.S.C. 2936) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3)--
       (A) by striking ``human-inducted'' and inserting ``human-
     induced''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(4) evaluates the information being developed under this 
     title, considering in particular the usefulness of the 
     information to national, State, tribal, and local decision 
     makers and other interested persons, including those in the 
     private sector, after providing a meaningful opportunity for 
     considering the views of those persons on the effectiveness 
     of the Program and the usefulness of the information.''.
       (f) National Climate Service Plan.--Title I of the Global 
     Change Research Act of 1990 (15 U.S.C. 2931 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 109. NATIONAL CLIMATE SERVICE PLAN.

       ``Not later than 1 year after the date of enactment of the 
     Energy and Climate Change Act of 2005, the Secretary of 
     Commerce, after review by the Interagency Task Force on 
     Climate Change established under section 103 of that Act, 
     shall submit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Science of 
     the House of Representatives a plan of action for a National 
     Climate Service that contains recommendations and funding 
     estimates for--
       ``(1) a national center for operational climate monitoring 
     and predicting with the functional capacity to monitor and 
     adjust observing systems as necessary to reduce bias;
       ``(2) the design, deployment, and operation of an adequate 
     national climate observing system that builds upon existing 
     environmental monitoring systems and closes gaps in coverage 
     by existing systems;
       ``(3) the establishment of a national coordinated modeling 
     strategy, including a national climate modeling center to 
     provide a dedicated capability for climate modeling and a 
     regular schedule of projections on a long-term and short-term 
     time schedule and at a range of spatial scales;
       ``(4) improvements in modeling and assessment capabilities 
     needed to integrate information to predict regional and local 
     climate changes and impacts;
       ``(5) in coordination with the private sector, improving 
     the capacity to assess the impacts of predicted and projected 
     climate changes and variations;
       ``(6) a program for long term stewardship, quality control, 
     development of relevant climate products, and efficient 
     access to all relevant climate data, products, and critical 
     model simulations; and
       ``(7) mechanisms to coordinate among Federal agencies, 
     State, tribal, and local government entities and the academic 
     community to ensure timely and full sharing and dissemination 
     of climate information and services, both in the United 
     States and internationally.''.

                  Subtitle E--Forests and Agriculture

     SEC. 1571. DEFINITIONS.

       In this subtitle:
       (1) Advisory panel.--The term ``Advisory Panel'' means the 
     Soil and Forestry Carbon Sequestration Panel established 
     under subsection 1574(a).
       (2) Eligible forest carbon activity.--The term ``eligible 
     forest carbon activity'' means a forest management action 
     that--
       (A) helps restore forest land that has been underproducing 
     or understocked for more than 5 years;

[[Page S6949]]

       (B) maintains natural forest under a permanent conservation 
     easement;
       (C) provides for protection of a forest from nonforest use;
       (D) allows a variety of sustainable management 
     alternatives;
       (E) maintains or improves a watershed or fish and wildlife 
     habitat; or
       (F) demonstrates permanence of carbon sequestration and 
     promotes and sustains native species.
       (3) Forest carbon reservoir.--The term ``forest carbon 
     reservoir'' means carbon that is stored in aboveground or 
     underground soil and other forms of biomass that are 
     associated with a forest ecosystem.
       (4) Forest carbon sequestration program.--The term ``forest 
     carbon sequestration program'' means the program established 
     under subsection 1572(a).
       (5) Forest land.--
       (A) In general.--The term ``forest land'' means a parcel of 
     land that is, or has been, at least 10 percent stocked by 
     forest trees of any size.
       (B) Inclusions.--The term ``forest land'' includes--
       (i) land on which forest cover may be naturally or 
     artificially regenerated; and
       (ii) a transition zone between a forested area and 
     nonforested area that is capable of sustaining forest cover.
       (6) Forest management action.--
       (A) In general.--The term ``forest management action'' 
     means an action that--
       (i) applies forestry principles to the regeneration, 
     management, use, or conservation of forests to meet specific 
     goals and objectives;
       (ii) demonstrates permanence of carbon sequestration and 
     promotes and sustains native species; and
       (iii) maintains the ecological sustainability and 
     productivity of the forests or protects natural forests under 
     a permanent conservation easement.
       (B) Inclusions.--The term ``forest management action'' 
     includes management and use of forest land for the benefit of 
     aesthetics, fish, recreation, urban values, water, 
     wilderness, wildlife, wood products, or other forest values.
       (7) Reforestation.--
       (A) In general.--The term ``reforestation'' means the 
     reestablishment of forest cover naturally or artificially.
       (B) Inclusions.--The term ``reforestation'' includes 
     planned replanting, reseeding, and natural regeneration.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (9) Soil carbon sequestration program.--The term ``soil 
     carbon sequestration program'' means the program established 
     under section 1573(a)(1).
       (10) State.--
       (A) In general.--The term ``State'' means--
       (i) a State; and
       (ii) the District of Columbia.
       (B) Inclusion.--The term ``State'' includes a political 
     subdivision of a State.
       (11) Willing owner.--The term ``willing owner'' means a 
     State or local government, Indian tribe, private entity, or 
     other person or non-Federal organization that owns forest 
     land and is willing to participate in the forest carbon 
     sequestration program.

     SEC. 1572. FOREST CARBON SEQUESTRATION PROGRAM.

       (a) In General.--The Secretary, acting through the Chief of 
     the Forest Service and in collaboration with State foresters, 
     State resource management agencies, and interested 
     nongovernmental organizations, shall establish a forest 
     carbon sequestration program under which the Secretary, 
     directly or through agreements with 1 or more States, may 
     enter into cooperative agreements with willing owners to 
     carry out forest management actions or eligible forest carbon 
     activities on not more than a total of 5,000 acres of forest 
     land holdings to create or maintain a forest carbon 
     reservoir.
       (b) Assistance to States.--
       (1) In general.--The Secretary shall provide assistance to 
     States to enter into cooperative agreements with willing 
     owners to carry out eligible forest carbon activities on 
     forest land.
       (2) Reporting.--As a condition of receiving assistance 
     under paragraph (1), a State shall annually submit to the 
     Secretary a report disclosing the estimated quantity of 
     carbon stored through the cooperative agreement.
       (c) Bonneville Power Administration.--Each of the States of 
     Idaho, Oregon, Montana, and Washington may apply for funding 
     from the Bonneville Power Administration to fund a 
     cooperative agreement that--
       (1) meets the fish and wildlife objectives and priorities 
     of the Bonneville Power Administration under the Pacific 
     Northwest Electric Power Planning and Conservation Act (16 
     U.S.C. 839 et seq.); and
       (2) meets the objectives of this section.

     SEC. 1573. SOIL CARBON SEQUESTRATION PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary, acting through the Chief of 
     the Natural Resources Conservation Service and in cooperation 
     with the Consortium for Agricultural Soils Mitigation of 
     Greenhouse Gases, shall carry out at least 4 pilot programs 
     to--
       (A) develop, demonstrate, and verify the best management 
     practices for enhanced soil carbon sequestration on 
     agricultural land; and
       (B) evaluate and establish standardized monitoring and 
     verification methods and protocols.
       (2) Criteria.--The Secretary shall select a pilot program 
     based on--
       (A) the merit of the proposed program; and
       (B) the diversity of soil types, climate zones, crop types, 
     cropping patterns, and sequestration practices available at 
     the site of the proposed program.
       (b) Requirements.--A pilot program carried out under this 
     section shall--
       (1) involve agricultural producers in--
       (A) the development and verification of best management 
     practices for carbon sequestration; and
       (B) the development and evaluation of carbon monitoring and 
     verification methods and protocols on agricultural land;
       (2) involve research and testing of the best management 
     practices and monitoring and verification methods and 
     protocols in various soil types and climate zones;
       (3) analyze the effects of the adoption of the best 
     management practices on--
       (A) greenhouse gas emissions, water quality, and other 
     aspects of the environment at the watershed level; and
       (B) the full range of greenhouse gases; and
       (4) use the results of the research conducted under the 
     program to--
       (A) develop best management practices for use by 
     agricultural producers;
       (B) provide a comparison of the costs and net greenhouse 
     effects of the best management practices;
       (C) encourage agricultural producers to adopt the best 
     management practices; and
       (D) develop best management practices on a regional basis 
     for use in watersheds and States not participating in the 
     pilot programs.

     SEC. 1574. SOIL AND FORESTRY CARBON SEQUESTRATION PANEL.

       (a) Establishment.--The Secretary, acting through the Chief 
     of the Forest Service and the Chief of the Natural Resources 
     Conservation Service, shall establish a soil and forestry 
     carbon sequestration panel to--
       (1) advise the Secretary in the development and updating of 
     guidelines for accurate voluntary reporting of greenhouse gas 
     sequestration from forest management actions and agricultural 
     best management practices;
       (2) evaluate the potential effectiveness (including cost 
     effectiveness) of the guidelines in verifying carbon inputs 
     and outputs and assessing impacts on other greenhouse gases 
     from various forest management strategies and agricultural 
     best management practices;
       (3) estimate the effect of proposed implementation of the 
     guidelines on--
       (A) carbon sequestration and storage; and
       (B) the net emissions of other greenhouse gases;
       (4) provide estimates on the rates of carbon sequestration 
     and net nitrous oxide and methane impacts for forests and 
     various plants, agricultural commodities, and agricultural 
     practices to assist the Secretary in determining the 
     acceptability of the cooperative agreement offers made by 
     willing owners;
       (5) propose to the Secretary the standardized methods for--
       (A) measuring carbon sequestered in soils and in forests; 
     and
       (B) estimating the impacts of the forest carbon 
     sequestration program and the soil carbon sequestration 
     program on other greenhouse gases; and
       (6) assist the Secretary in reporting to Congress on the 
     results of the forest carbon sequestration program and the 
     soil carbon sequestration program.
       (b) Membership.--The Advisory Panel shall be composed of 
     the following members with interest and expertise in soil 
     carbon sequestration and forestry management, appointed by 
     the Secretary:
       (1) 1 member representing national professional forestry 
     organizations.
       (2) 1 member representing national agriculture 
     organizations.
       (3) 2 members representing environmental or conservation 
     organizations.
       (4) 1 member representing Indian tribes.
       (5) 3 members representing the academic scientific 
     community.
       (6) 2 members representing State forestry organizations.
       (7) 2 members representing State agricultural 
     organizations.
       (8) 1 member representing the Environmental Protection 
     Agency.
       (9) 1 member representing the Department of Agriculture.
       (c) Terms.--
       (1) In general.--Except as provided in paragraph (2), a 
     member of the Advisory Panel shall be appointed for a term of 
     3 years.
       (2) Initial terms.--Of the members first appointed to the 
     Advisory Panel--
       (A) 1 member appointed under each of paragraphs (2), (4), 
     (6), and (8) of subsection (b), as determined by the 
     Secretary, shall serve an initial term of 1 year; and
       (B) 1 member appointed under each of paragraphs (1), (3), 
     (5), (7), and (9) of subsection (b), as determined by the 
     Secretary, shall serve an initial term of 2 years.
       (3) Vacancies.--
       (A) In general.--A vacancy on the Advisory Panel shall be 
     filled in the manner in which the original appointment was 
     made.
       (B) Partial term.--A member appointed to fill a vacancy 
     occurring before the expiration of a term shall be appointed 
     only for the remainder of the term.
       (C) Successive terms.--An individual may not be appointed 
     to serve on the Advisory Panel for more than 2 full 
     consecutive terms.

[[Page S6950]]

       (d) Existing Committees.--The Secretary may use an existing 
     Federal advisory committee to perform the tasks of the 
     Advisory Panel if--
       (1) representation on the advisory committee, the terms and 
     background of members of the advisory committee, and the 
     responsibilities of the advisory committee reflect those of 
     the Advisory Panel; and
       (2) those responsibilities are a priority for the advisory 
     committee.

     SEC. 1575. STANDARDIZATION OF CARBON SEQUESTRATION 
                   MEASUREMENT PROTOCOLS.

       (a) Accurate Monitoring, Measurement, and Reporting.--
       (1) In general.--The Secretary, in collaboration with the 
     States, shall--
       (A) develop standardized measurement protocols for--
       (i) carbon sequestered in soils and trees; and
       (ii) impacts on other greenhouse gases;
       (B)(i) develop standardized forms to monitor sequestration 
     improvements made as a result of the forest carbon 
     sequestration program and the soil carbon sequestration 
     program; and
       (ii) distribute the forms to participants in the forest 
     carbon sequestration program and the soil carbon 
     sequestration program; and
       (C) at least once every 5 years, submit to the appropriate 
     committees of Congress a report on the forest carbon 
     sequestration program and the soil carbon sequestration 
     program.
       (2) Contents of report.--A report under paragraph (1)(C) 
     shall describe--
       (A) carbon sequestration improvements made as a result of 
     the forest carbon sequestration program and the soil carbon 
     sequestration program;
       (B) carbon sequestration practices on land owned by 
     participants in the forest carbon sequestration program and 
     the soil carbon sequestration program; and
       (C) the degree of compliance with any cooperative 
     agreements, contracts, or other arrangements entered into 
     under this section.
       (b) Educational Outreach.--The Secretary, acting through 
     the Administrator of the Cooperative State Research, 
     Education, and Extension Service, and in consultation with 
     the Consortium for Agricultural Soils Mitigation of 
     Greenhouse Gases, shall conduct an educational outreach 
     program to collect and disseminate to owners and operators of 
     agricultural and forest land research-based information on 
     agriculture and forest management practices that will 
     increase the sequestration of carbon, without threat to the 
     social and economic well-being of communities.
       (c) Periodic Review.--At least once every 2 years, the 
     Secretary shall--
       (1) convene the Advisory Panel to evaluate the latest 
     scientific and observational information on reporting, 
     monitoring, and verification of carbon storage from forest 
     management and soil sequestration actions; and
       (2) issue, as necessary, revised recommendations for 
     reporting, monitoring, and verifying carbon storage from 
     forest management actions and agricultural best management 
     practices.
                                 ______
                                 
  SA 816. Mr. KOHL submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC.  REACTOR DEMONSTRATION PROGRAM

       (1) Not later than 120 days after the date of enactment, 
     and notwithstanding Section 302(a)(5) of the Nuclear Waste 
     Policy Act of 1982 (42 U.S.C. 10222(a)(5)), the Secretary is 
     authorized to take title to the spent nuclear fuel withdrawn 
     from the demonstration reactor remaining from the Cooperative 
     Power Reactor Demonstration Program (Pub. L. No. 87-315, Sec. 
     109, 75 Stat. 679), the Dairyland Power Cooperative La Crosse 
     Boiling Water Reactor. Immediately upon the Secretary's 
     taking title to the Dairyland Power Cooperative La Crosse 
     Boiling Water Reactor spent nuclear fuel, the Secretary shall 
     assume all responsibility and liability for the interim 
     storage and permanent disposal thereof and is authorized to 
     compensate Dairyland Power Cooperative for any costs related 
     to operating and maintaining facilities necessary for such 
     storage, from the date of taking title until the Secretary 
     removes the spent nuclear fuel from the Dairyland Power 
     Cooperative La Crosse Boiling Water Reactor site. The 
     Secretary's obligation to take title or compensate the holder 
     of the Dairyland Power Cooperative La Crosse Boiling Water 
     Reactor spent nuclear fuel under this section shall include 
     all of such fuel, regardless of the delivery commitment 
     schedule for such fuel under the Secretary's contract with 
     the Dairyland Power Cooperative as the contract holder under 
     Section 302(a) of the Nuclear Waste Policy Act of 1982 (42 
     U.S.C. 10222(a)) or the acceptance schedule for such fuel 
     under section 106 of this Act.
       (2) As a condition to the Secretary's taking of title to 
     the Dairyland Power Cooperative La Crosse Boiling Water 
     Reactor spent nuclear fuel, the contract holder for such fuel 
     shall enter into a settlement agreement containing a waiver 
     of claims against the United States as provided in this 
     section.
       (3) Nothing in this section shall limit the Secretary's 
     existing authority to enter into settlement agreements or 
     address shutdown reactors and any associated public health 
     and safety or environmental concerns that may arise.
                                 ______
                                 
  SA 817. Mr. HAGEL (for himself, Mr. Pryor, Mr. Alexander, Ms. 
Landrieu, Mr. Craig, Mrs. Dole, Ms. Murkowski, Mr. Voinovich, and Mr. 
Stevens) proposed an amendment to the bill H.R. 6, to ensure jobs for 
our future with secure, affordable, and reliable energy; which was 
ordered to lie on the table; as follows:

       At the end of the bill, add the following:

                        TITLE XV--CLIMATE CHANGE

       Subtitle A--National Climate Change Technology Deployment

     SEC. 1501. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY 
                   STRATEGIES.

       Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381 
     et seq.) is amended by adding at the end the following:

     ``SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING STRATEGIES.

       ``(a) Definitions.--In this section:
       ``(1) Carbon sequestration.--The term `carbon 
     sequestration' means the capture of carbon dioxide through 
     terrestrial, geological, biological, or other means, which 
     prevents the release of carbon dioxide into the atmosphere.
       ``(2) Committee.--The term `Committee' means the 
     Interagency Coordinating Committee on Climate Change 
     Technology established under subsection (c)(1).
       ``(3) Developing country.--The term `developing country' 
     has the meaning given the term in section 1608(m).
       ``(4) Greenhouse gas.--The term `greenhouse gas' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons; and
       ``(F) sulfur hexafluoride.
       ``(5) Greenhouse gas intensity.--The term `greenhouse gas 
     intensity' means the ratio of greenhouse gas emissions to 
     economic output.
       ``(6) National laboratory.--The term `National Laboratory' 
     means a laboratory owned by the Department of Energy.
       ``(7) Working group.--The term `Working Group' means the 
     Climate Change Technology Working Group established under 
     subsection (f)(1).
       ``(b) Office of Science and Technology Policy Strategy.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of this section, the Director of the Office of 
     Science and Technology Policy shall, based on applicable 
     Federal climate reports, submit to the Secretary and the 
     President a national strategy to promote the deployment and 
     commercialization of greenhouse gas intensity reducing 
     technologies and practices developed through research and 
     development programs conducted by the National Laboratories, 
     other Federal research facilities, universities, and the 
     private sector.
       ``(2) Availability of strategy; updates.--The President 
     shall--
       ``(A) on submission of the strategy to the President under 
     paragraph (1), make the strategy available to the public; and
       ``(B) update the strategy as the President determines to be 
     necessary.
       ``(c) Interagency Coordinating Committee on Climate Change 
     Technology.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall establish 
     an Interagency Coordinating Committee on Climate Change 
     Technology to--
       ``(A) integrate current Federal climate reports; and
       ``(B) coordinate Federal climate change activities and 
     programs carried out in furtherance of the strategy developed 
     under subsection (b)(1).
       ``(2) Membership.--The Committee shall be composed of at 
     least 6 members, including--
       ``(A) the Secretary;
       ``(B) the Secretary of Commerce;
       ``(C) the Chairman of the Council on Environmental Quality;
       ``(D) the Secretary of Agriculture;
       ``(E) the Administrator of the Environmental Protection 
     Agency; and
       ``(F) the Secretary of Transportation.
       ``(3) Staff.--The Secretary shall provide such personnel as 
     are necessary to enable the Committee to perform the duties 
     of the Committee.
       ``(d) Climate Change Science Program and Climate Change 
     Technology Program.--
       ``(1) Climate change science program.--Not later than 180 
     days after the date on which the strategy is submitted under 
     subsection (b)(1), the Secretary of Commerce, in cooperation 
     with the Committee, shall permanently establish within the 
     Department of Commerce the Climate Change Science Program to 
     assist the Committee in the interagency coordination of 
     climate change science research and related activities, 
     including--
       ``(A) assessments of the state of knowledge on climate 
     change; and
       ``(B) carrying out supporting studies, planning, and 
     analyses of the science of climate change.
       ``(2) Climate change technology program.--Not later than 
     180 days after the date on which the strategy is submitted 
     under

[[Page S6951]]

     subsection (b)(1), the Secretary, in cooperation with the 
     Committee, shall permanently establish within the Department 
     of Energy, the Climate Change Technology Program to assist 
     the Committee in the interagency coordination of climate 
     change technology research, development, demonstration, and 
     deployment to reduce greenhouse gas intensity.
       ``(e) Technology Inventory.--
       ``(1) In general.--The Secretary shall conduct an inventory 
     and evaluation of greenhouse gas intensity reducing 
     technologies that have been developed, or are under 
     development, by the National Laboratories, other Federal 
     research facilities, universities, and the private sector to 
     determine which technologies are suitable for 
     commercialization and deployment.
       ``(2) Report.--Not later than 180 days after the completion 
     of the inventory under paragraph (1), the Secretary shall 
     submit to the Secretary of Commerce and Congress a report 
     that includes the results of the completed inventory and any 
     recommendations of the Secretary.
       ``(3) Use.--The Secretary, in consultation with the 
     Secretary of Commerce, shall use the results of the inventory 
     as guidance in the commercialization and deployment of 
     greenhouse gas intensity reducing technologies.
       ``(4) Updated inventory.--The Secretary shall--
       ``(A) periodically update the inventory under paragraph 
     (1); and
       ``(B) make the updated inventory available to the public.
       ``(f) Climate Change Technology Working Group.--
       ``(1) In general.--The Secretary, in consultation with the 
     Committee, shall establish within the Department of Energy a 
     Climate Change Technology Working Group to identify 
     statutory, regulatory, economic, and other barriers to the 
     commercialization and deployment of greenhouse gas intensity 
     reducing technologies and practices in the United States.
       ``(2) Composition.--The Working Group shall be composed of 
     the following members, to be appointed by the Secretary, in 
     consultation with the Committee:
       ``(A) 1 representative shall be appointed from each 
     National Laboratory.
       ``(B) 3 members shall be representatives of energy-
     producing trade organizations.
       ``(C) 3 members shall represent energy-intensive trade 
     organizations.
       ``(D) 3 members shall represent groups that represent end-
     use energy and other consumers.
       ``(E) 3 members shall be employees of the Federal 
     Government who are experts in energy technology, intellectual 
     property, and tax.
       ``(F) 3 members shall be representatives of universities 
     with expertise in energy technology development that are 
     recommended by the National Academy of Engineering.
       ``(3) Report.--Not later than 1 year after the date of 
     enactment of this section and annually thereafter, the 
     Working Group shall submit to the Committee a report that 
     describes--
       ``(A) the findings of the Working Group; and
       ``(B) any recommendations of the Working Group for the 
     removal or reduction of barriers to commercialization, 
     deployment, and increasing the use of greenhouse gas 
     intensity reducing technologies and practices.
       ``(4) Compensation of members.--
       ``(A) Non-federal employees.--A member of the Working Group 
     who is not an officer or employee of the Federal Government 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Working Group.
       ``(B) Federal employees.--A member of the Working Group who 
     is an officer or employee of the Federal Government shall 
     serve without compensation in addition to the compensation 
     received for the services of the member as an officer or 
     employee of the Federal Government.
       ``(C) Travel expenses.--A member of the Working Group shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       ``(g) Greenhouse Gas Intensity Reducing Technology 
     Deployment.--
       ``(1) In general.--Based on the strategy developed under 
     subsection (b)(1), the technology inventory conducted under 
     subsection (e)(1), and the greenhouse gas intensity reducing 
     technology study report submitted under subsection (e)(2), 
     the Committee shall develop a program for implementation by 
     the Climate Credit Board established under section 
     1611(b)(2)(A) that would provide for the removal of domestic 
     barriers to the commercialization and deployment of 
     greenhouse gas intensity reducing technologies and practices.
       ``(2) Requirements.--In developing the program under 
     paragraph (1), the Committee shall consider in the 
     aggregate--
       ``(A) the cost-effectiveness of the technology;
       ``(B) fiscal and regulatory barriers;
       ``(C) statutory and other barriers; and
       ``(D) intellectual property issues.
       ``(3) Report.--Not later than 18 months after the date of 
     enactment of this section, the Committee shall submit to the 
     President and Congress a report that--
       ``(A) identifies, based on the report submitted under 
     subsection (f)(3), any barriers to, and commercial risks 
     associated with, the deployment of greenhouse gas intensity 
     reducing technologies; and
       ``(B) includes a plan for carrying out eligible projects 
     with Federal financial assistance under section 1611.
       ``(h) Procedures for Calculating, Monitoring, and Analyzing 
     Greenhouse Gas Intensity.--
       ``(1) In general.--The Committee, in collaboration with the 
     Administrator of the Energy Information Administration and 
     the National Institute of Standards and Technology, shall 
     develop and propose standards and best practices for 
     calculating, monitoring, and analyzing greenhouse gas 
     intensity.
       ``(2) Content.--The standards and best practices shall 
     address measurement of greenhouse gas intensity by industry 
     sector.
       ``(3) Publication.--To provide the public with an 
     opportunity to comment on the standards and best practices 
     proposed under paragraph (1), the standards and best 
     practices shall be published in the Federal Register.
       ``(4) Applicable law.--To ensure that high quality 
     information is produced, the standards and best practices 
     developed under paragraph (1) shall conform to the guidelines 
     established under section 515 of the Treasury and General 
     Government Appropriations Act, 2001 (commonly known as the 
     `Data Quality Act') (44 U.S.C. 3516 note; 114 Stat. 2763A-
     1543), as enacted into law by section 1(a)(3) of Public Law 
     106-554.
       ``(i) Demonstration Projects.--
       ``(1) In general.--The Secretary shall, subject to 
     availability of appropriations, conduct and participate in 
     demonstration projects recommended for approval by the 
     Committee, including demonstration projects relating to--
       ``(A) coal gasification and coal liquefaction;
       ``(B) carbon sequestration;
       ``(C) cogeneration technology initiatives;
       ``(D) advanced nuclear power projects;
       ``(E) lower emission transportation;
       ``(F) renewable energy; and
       ``(G) transmission upgrades.
       ``(2) Criteria.--The Committee shall recommend a 
     demonstration project under paragraph (1) if the proposed 
     demonstration project would--
       ``(A) increase the reduction of the greenhouse gas 
     intensity to levels below that which would be achieved by 
     technologies being used in the United States as of the date 
     of enactment of this section;
       ``(B) maximize the potential return on Federal investment;
       ``(C) demonstrate distinct roles in public-private 
     partnerships;
       ``(D) produce a large-scale reduction of greenhouse gas 
     intensity if commercialization occurred; and
       ``(E) support a diversified portfolio to mitigate the 
     uncertainty associated with a single technology.
       ``(j) Cooperative Research and Development Agreements.--In 
     carrying out greenhouse gas intensity reduction research and 
     technology deployment, the Secretary may enter into 
     cooperative research and development agreements under section 
     12 of the Stevenson-Wydler Technology Innovation Act of 1980 
     (15 U.S.C. 3710a).
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 1502. CLIMATE INFRASTRUCTURE CREDIT.

       Title XVI of the Energy Policy Act of 1992 (42 (U.S.C. 
     13381 et seq.) (as amended by section 1501) is amended by 
     adding at the end the following:

     ``SEC. 1611. CLIMATE INFRASTRUCTURE CREDIT.

       ``(a) Definitions.--In this section:
       ``(1) Advanced climate technology or system.--The term 
     `advanced climate technology or system' means a climate 
     technology or system that is not in general usage as of the 
     date of enactment of this section.
       ``(2) Board.--The term `Board' means the Climate Credit 
     Board established under subsection (b)(2)(A).
       ``(3) Direct loan.--The term `direct loan' has the meaning 
     given the term in section 502 of the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661a).
       ``(4) Eligible project.--The term `eligible project' means 
     a demonstration project that is recommended for approval 
     under section 1610(i)(1).
       ``(5) Eligible project cost.--The term `eligible project 
     cost' means any amount incurred for an eligible project that 
     is paid by, or on behalf of, an obligor, including the costs 
     of--
       ``(A) construction activities, including--
       ``(i) the acquisition of capital equipment; and
       ``(ii) construction management;
       ``(B) acquiring land (including any improvements to the 
     land) relating to the eligible project; and
       ``(C) financing the eligible project, including--
       ``(i) providing capitalized interest necessary to meet 
     market requirements;
       ``(ii) capital issuance expenses; and
       ``(iii) other carrying costs during construction.

[[Page S6952]]

       ``(6) Federal financial assistance.--The term `Federal 
     financial assistance' means any credit-based financial 
     assistance, including a direct loan, loan guarantee, a line 
     of credit (which serves as standby default coverage or 
     standby interest coverage), production incentive payment 
     under subsection (g)(1)(B), or other credit-based financial 
     assistance mechanism for an eligible project that is--
       ``(A) authorized to be made available by the Secretary for 
     an eligible project under this section; and
       ``(B) provided in accordance with the Federal Credit Reform 
     Act of 1990 (2 U.S.C. 661 et seq.).
       ``(7) Investment-grade rating.--The term `investment-grade 
     rating' means a rating category of BBB minus, Baa3, or higher 
     assigned by a rating agency for eligible project obligations 
     offered into the capital markets.
       ``(8) Lender.--The term `lender' means any non-Federal 
     qualified institutional buyer (as defined in section 
     230.144A(a) of title 17, Code of Federal Regulations (or any 
     successor regulation), known as Rule 144A(a) of the 
     Securities and Exchange Commission and issued under the 
     Securities Act of 1933 (15 U.S.C. 77a et seq.)), including--
       ``(A) a qualified retirement plan (as defined in section 
     4974(c) of the Internal Revenue Code of 1986) that is a 
     qualified institutional buyer; and
       ``(B) a governmental plan (as defined in section 414(d) of 
     the Internal Revenue Code of 1986) that is a qualified 
     institutional buyer.
       ``(9) Loan guarantee.--The term `loan guarantee' means any 
     guarantee or other pledge by the Secretary to pay all or part 
     of the principal of and interest on a loan or other debt 
     obligation that is issued by an obligor and funded by a 
     lender.
       ``(10) Obligor.--The term `obligor' means a person or 
     entity (including a corporation, partnership, joint venture, 
     trust, or governmental entity, agency, or instrumentality) 
     that is primarily liable for payment of the principal of, or 
     interest on, a Federal credit instrument.
       ``(11) Project obligation.--The term `project obligation' 
     means any note, bond, debenture, or other debt obligation 
     issued by an obligor in connection with the financing of an 
     eligible project, other than a Federal credit instrument.
       ``(12) Rating agency.--The term `rating agency' means a 
     bond rating agency identified by the Securities and Exchange 
     Commission as a Nationally Recognized Statistical Rating 
     Organization.
       ``(13) Regulatory failure.--The term `regulatory failure' 
     means a situation in which the Secretary determines that, 
     because of a breakdown in a regulatory process or an 
     indefinite delay caused by a judicial challenge to the 
     regulatory consideration of a specific eligible project, the 
     Federal or State regulatory or licensing process governing 
     the siting, construction, or commissioning of an eligible 
     project does not produce a definitive determination that the 
     eligible project may go forward or stop within a 
     predetermined and prescribed time period.
       ``(14) Secured loan.--The term `secured loan' means a loan 
     or other secured debt obligation issued by an obligor and 
     funded by the Secretary in connection with the financing of 
     an eligible project.
       ``(15) Standby default coverage.--The term `standby default 
     coverage' means a pledge by the Secretary to pay all or part 
     of the debt obligation issued by an obligor and funded by a 
     lender, plus all or part of obligor equity, if an eligible 
     project fails to receive an operating license in a period of 
     time established by the Secretary because of a regulatory 
     failure or other specific issue identified by the Secretary.
       ``(16) Standby interest coverage.--The term `standby 
     interest coverage' means a pledge by the Secretary to provide 
     to an obligor, at a future date and on the occurrence of 1 or 
     more events, a direct loan, the proceeds of which shall be 
     used by the obligor to maintain the current status of the 
     obligor on interest payments due on 1 or more loans or other 
     project obligations issued by an obligor and funded by a 
     lender for an eligible project.
       ``(17) Subsidy amount.--The term `subsidy amount' means the 
     amount of budget authority sufficient to cover the estimated 
     long-term cost to the Federal Government of a Federal credit 
     instrument issued by the Secretary to an eligible project, 
     calculated on a net present value basis, excluding 
     administrative costs and any incidental effects on 
     governmental receipts or outlays in accordance with the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
       ``(18) Substantial completion.--The term `substantial 
     completion' means that an eligible project has been 
     determined by the Board to be in, or capable of, commercial 
     operation.
       ``(b) Duties of the Secretary.--
       ``(1) In general.--The Secretary shall make available to 
     eligible project developers and eligible project owners, in 
     accordance with this section, such financial assistance as is 
     necessary to supplement private sector financing for eligible 
     projects.
       ``(2) Climate credit board.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall establish 
     within the Department of Energy a Climate Credit Board 
     composed of--
       ``(i) the Under Secretary of Energy, who shall serve as 
     Chairperson;
       ``(ii) the Chief Financial Officer of the Department of 
     Energy;
       ``(iii) the Assistant Secretary of Energy for Policy and 
     International Affairs;
       ``(iv) the Assistant Secretary of Energy for Energy 
     Efficiency and Renewable Energy; and
       ``(v) such other individuals as the Secretary determines to 
     have the experience and expertise (including expertise in 
     corporate and project finance and the energy sector) 
     necessary to carry out the duties of the Board.
       ``(B) Duties.--The Board shall--
       ``(i) implement the program developed under section 
     1610(g)(1) in accordance with paragraph (3);
       ``(ii) issue regulations and criteria in accordance with 
     paragraph (4);
       ``(iii) conduct negotiations with individuals and entities 
     interested in obtaining assistance under this section;
       ``(iv) recommend to the Secretary potential recipients and 
     amounts of grants of assistance under this section; and
       ``(v) establish metrics to indicate the progress of the 
     greenhouse gas intensity reducing technology deployment 
     program and individual projects carried out under the program 
     toward meeting the criteria established by section 
     1610(i)(2).
       ``(3) Greenhouse gas intensity reducing technology 
     deployment program.--Not later than 1 year after the date of 
     enactment of this section, the Board, with the approval of 
     the Secretary, shall implement the greenhouse gas intensity 
     reducing technology deployment program developed under 
     section 1610(g)(1).
       ``(4) Regulations and criteria.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this section, the Board, in coordination with 
     the Secretary and after an opportunity for public comment, 
     shall issue such regulations and criteria as are necessary to 
     implement this section.
       ``(B) Requirements.--The regulations and criteria shall 
     provide for, at a minimum--
       ``(i) a competitive process and the general terms and 
     conditions for the provision of assistance under this 
     section;
       ``(ii) the procedures by which eligible project owners and 
     eligible project developers may request financial assistance 
     under this section; and
       ``(iii) the collection of any other information necessary 
     for the Secretary to carry out this section, including a 
     process for negotiating the terms and conditions of 
     assistance provided under this section.
       ``(C) Eligibility and criteria.--The determination of 
     eligibility of, and criteria for selecting, eligible projects 
     to receive assistance under this section shall be carried out 
     in accordance with subsection (c) and the regulations issued 
     under subparagraph (A).
       ``(D) Conditions for provision of assistance.--The Board 
     shall not provide assistance under this section unless the 
     Board determines, in accordance with the regulations issued 
     under subparagraph (A), that the terms, conditions, maturity, 
     security, schedule, and amounts of repayments of the 
     assistance are reasonable and appropriate to protect the 
     financial interests of the United States.
       ``(5) Confidentiality.--In accordance with section 552 of 
     title 5, United States Code, and any related regulations 
     applicable to the Department of Energy, the Board shall 
     protect the confidentiality of any information provided by an 
     applicant for assistance under this section that the 
     applicant certifies to be commercially sensitive or that is 
     protected intellectual property.
       ``(c) Determination of Eligibility; Project Selection.--
       ``(1) Eligibility.--To be eligible to receive assistance 
     under this section, an eligible project shall, as determined 
     by the Board--
       ``(A) be supported by an application that contains all 
     information required to be included by, and is submitted to 
     and approved by the Board in accordance with, the regulations 
     and criteria issued by the Board under subsection (b)(4);
       ``(B) be nationally or regionally significant by--
       ``(i) reducing greenhouse gas intensity;
       ``(ii) contributing to energy security; and
       ``(iii) contributing to energy and technology diversity in 
     the energy economy of the United States;
       ``(C) contain an advanced climate technology or system that 
     could--
       ``(i) significantly improve the efficiency, security, 
     reliability, and environmental performance of the energy 
     economy of the United States; and
       ``(ii) reduce greenhouse gas emissions;
       ``(D) have revenue sources dedicated to repayment of credit 
     support-based project financing, such as revenue--
       ``(i) from the sale of sequestered carbon;
       ``(ii) from the sale of energy, electricity, or other 
     products from eligible projects that employ advanced climate 
     technologies and systems;
       ``(iii) from the sale of electricity or generating 
     capacity, in the case of electricity infrastructure; or
       ``(iv) associated with energy efficiency gains, in the case 
     of other energy projects;
       ``(E) include a project proposal and agreement for project 
     financing repayment that demonstrates to the satisfaction of 
     the Board that the dedicated revenue sources described in 
     subparagraph (D) will be adequate to repay project financing 
     provided under this section; and

[[Page S6953]]

       ``(F) reduce greenhouse gas intensity on a national, 
     regional, or company basis.
       ``(2) Limitations.--Except as otherwise provided in this 
     section--
       ``(A) the total cost of an eligible project provided 
     Federal financial assistance under this section shall be at 
     least $40,000,000;
       ``(B) the Federal share of an eligible project provided 
     Federal financial assistance under this section shall be not 
     more than 25 percent of eligible project costs;
       ``(C) not more than $200,000,000 in Federal financial 
     assistance shall be provided to any individual eligible 
     project; and
       ``(D) an eligible project shall not be eligible for 
     financial assistance from any other Federal grant program 
     during any period that Federal financial assistance (other 
     than a Federal loan or loan guarantee) is provided to the 
     eligible project under this section.
       ``(3) Selection among eligible projects.--
       ``(A) Establishment of selection criteria.--The Board, in 
     consultation with the Secretary and [the Interagency 
     Coordinating Committee on Climate Change Technology 
     established under section 1610(c)(1)], shall, in accordance 
     with the regulations issued under subsection (b)(4)(A), 
     establish criteria for selecting which eligible projects will 
     receive assistance under this section.
       ``(B) Requirements.--The selection criteria shall include a 
     determination by the Board of the extent to which--
       ``(i) the eligible project reduces greenhouse gas intensity 
     beyond reductions achieved by technology available as of 
     October 15, 1992;
       ``(ii) financing for the eligible project has appropriate 
     security features, such as a rate covenant, to ensure 
     repayment;
       ``(iii) assistance under this section for the eligible 
     project would foster innovative public-private partnerships 
     and attract private debt or equity investment;
       ``(iv) assistance under this section for an eligible 
     project would enable the eligible project to proceed at an 
     earlier date than would otherwise be practicable; and
       ``(v) the eligible project uses new technologies that 
     enhance the efficiency, reduce greenhouse gas intensity, 
     improve the reliability, or improve the safety, of the 
     eligible project.
       ``(C) Financial information.--An application for assistance 
     for an eligible project under this section shall include such 
     information as the Secretary determines to be necessary 
     concerning--
       ``(i) the amount of budget authority required to fund the 
     Federal credit instrument requested for the eligible project;
       ``(ii) the estimated construction costs of the proposed 
     eligible project;
       ``(iii) estimates of construction and operating costs of 
     the eligible project;
       ``(iv) projected revenues from the eligible project; and
       ``(v) any other financial aspects of the eligible project, 
     including assurances, that the Board determines to be 
     appropriate.
       ``(D) Preliminary rating opinion letter.--The Board shall 
     require each applicant seeking assistance for an eligible 
     project under this section to provide a preliminary rating 
     opinion letter from at least 1 credit rating agency 
     indicating that the senior obligations of the eligible 
     project have the potential to achieve an investment-grade 
     rating.
       ``(E) Risk assessment.--Before entering into any agreement 
     to provide assistance for an eligible project under this 
     section, the Board, in consultation with the Secretary, the 
     Director of the Office of Management and Budget, and each 
     credit rating agency providing a preliminary rating opinion 
     letter under subparagraph (D), shall determine and maintain 
     an appropriate capital reserve subsidy amount for each line 
     of credit established for the eligible project, taking into 
     account the information contained in the preliminary rating 
     opinion letter.
       ``(F) Investment-grade rating requirement.--
       ``(i) In general.--The funding of any assistance under this 
     section shall be contingent on the senior obligations of the 
     eligible project receiving an investment-grade rating from at 
     least 1 credit rating agency.
       ``(ii) Considerations.--In determining whether an 
     investment-grade rating is appropriate under clause (i), the 
     credit rating agency shall take into account the availability 
     of Federal financial assistance under this section.
       ``(4) Maximum available climate credit support.--
     Notwithstanding any assistance limitation under any other 
     provision of this section, the Secretary shall not provide 
     energy credit support to any eligible project in the form of 
     a secured loan or loan guarantee under subsection (f), 
     production incentive payments under subsection (g), or other 
     credit-based financial assistance under subsection (h), the 
     combined total of which exceeds 25 percent of eligible 
     project costs, excluding the value of standby default 
     coverage under subsection (d) and standby interest coverage 
     under subsection (e), as determined by the Secretary.
       ``(d) Standby Default Coverage.--
       ``(1) Agreements; use of proceeds.--
       ``(A) Agreements.--
       ``(i) In general.--Subject to subparagraph (B), the Board, 
     in consultation with the Secretary, may enter into agreements 
     to provide standby default coverage for advanced climate 
     technologies or systems of an eligible project.
       ``(ii) Recipients.--Coverage under clause (i) may be 
     provided to 1 or more obligors and debt holders to be 
     triggered at future dates on the occurrence of certain events 
     for any eligible project selected under subsection (c).
       ``(B) Use of proceeds.--The proceeds of standby default 
     coverage made available under this subsection shall be 
     available to reimburse all or part of the debt obligation for 
     an eligible project issued by an obligor and funded by a 
     lender, plus all or part of obligor equity, in the event 
     that, because of a regulatory failure or other event 
     specified by the Secretary pursuant to this section, an 
     eligible advanced climate technology or system for an 
     eligible project fails to receive an operating license in a 
     period of time specified by the Board in accordance with this 
     subsection.
       ``(2) Terms and limitations.--
       ``(A) In general.--Standby default coverage under this 
     subsection with respect to an eligible project shall be on 
     such terms and conditions and contain such covenants, 
     representations, warranties, and requirements (including 
     requirements for audits) as the Board determines to be 
     appropriate.
       ``(B) Maximum amounts.--The total amount of standby default 
     coverage provided for an eligible project shall not exceed 25 
     percent of the reasonably anticipated eligible project costs, 
     including debt and equity.
       ``(C) Exercise.--Any exercise on the standby default 
     coverage shall be made only if a facility involved with the 
     eligible project fails, because of regulatory failure or 
     other specific issues specified by the Secretary, to receive 
     an operating license by such deadline as the Secretary shall 
     establish.
       ``(D) Cost of coverage.--The cost of standby default 
     coverage shall be assumed by the Secretary subject to the 
     risk assessment calculation required under subsection 
     (c)(4)(E) and the availability of funds for that purpose.
       ``(E) Fees.--In carrying out this section, the Secretary 
     may--
       ``(i) establish fees at a level sufficient to cover all or 
     a portion of the administrative costs incurred by the Federal 
     Government in providing standby default coverage under this 
     subsection; and
       ``(ii) require that the fees be paid upon application for a 
     standby default coverage agreement under this subsection.
       ``(F) Period of availability.--In the event that regulatory 
     approval to operate a facility is suspended as a result of 
     regulatory failure or other circumstances specified by the 
     Secretary, standby default coverage shall be available 
     beginning on the date of substantial completion and ending 
     not later than 5 years after the date on which operation of 
     the facility is scheduled to commence.
       ``(G) Rights of third-party creditors.--
       ``(i) Against federal government.--A third-party creditor 
     of an obligor shall not have any right against the Federal 
     Government with respect to any amounts other than those 
     specified in clause (ii).
       ``(ii) Assignment.--An obligor may assign all or part of 
     the standby default coverage for an eligible project to 1 or 
     more lenders or to a trustee on behalf of the lenders.
       ``(H) Result of exercise of standby default coverage.--If 
     standby default coverage is exercised by the obligor of an 
     eligible project--
       ``(i) the Federal Government shall become the sole owner of 
     the eligible project, with all rights and appurtenances to 
     the eligible project; and
       ``(ii) in accordance with applicable provisions of law, the 
     Board shall dispose of the assets of the eligible project on 
     terms that are most favorable to the Federal Government, 
     which may include continuing to licensing and commercial 
     operation or resale of the eligible project, in whole or in 
     part, if that is the best course of action in the judgment of 
     the Board.
       ``(I) Estimate of assets at time of termination.--If 
     standby default coverage is exercised and an eligible project 
     is terminated, the Board, in making a determination of 
     whether to dispose of the assets of the eligible project or 
     continue the eligible project to licensing and commercial 
     operation, shall obtain a fair and impartial estimate of the 
     eligible project assets at the time of termination.
       ``(J) Relationship to other credit instruments.--An 
     eligible project that receives standby default coverage under 
     this subsection may receive a secured loan or loan guarantee 
     under subsection (f), production incentive payments under 
     subsection (g), or assistance through a credit-based 
     financial assistance mechanism under subsection (h).
       ``(K) Other conditions and requirements.--The Secretary may 
     impose such other conditions and requirements in connection 
     with any insurance provided under this subsection (including 
     requirements for audits) as the Secretary determines to be 
     appropriate.
       ``(e) Standby Interest Coverage.--
       ``(1) In general.--
       ``(A) Agreements.--Subject to subparagraph (B), the Board, 
     in consultation with the Secretary, may enter into agreements 
     to make standby interest coverage available to 1 or more 
     obligors in the form of loans for advanced climate or energy 
     technologies or systems to be made by the Board at future 
     dates on the occurrence of certain events for any eligible 
     project selected under subsection (c)(4).
       ``(B) Use of proceeds.--Subject to subsection (c)(3), the 
     proceeds of standby interest coverage made available under 
     this subsection shall be available to pay the debt service on 
     project obligations issued to finance eligible project costs 
     of an eligible

[[Page S6954]]

     project if a delay in commercial operations occurs due to a 
     regulatory failure or other condition determined by the 
     Secretary.
       ``(2) Terms and limitations.--
       ``(A) In general.--Standby interest coverage under this 
     subsection with respect to an eligible project shall be made 
     on such terms and conditions (including a requirement for an 
     audit) as the Secretary determines appropriate.
       ``(B) Maximum amounts.--
       ``(i) Total amount.--The total amount of standby interest 
     coverage for an eligible project under this subsection shall 
     not exceed 25 percent of the reasonably anticipated eligible 
     project costs of the eligible project.
       ``(ii) 1-year draws.--The amount drawn in any 1 year for an 
     eligible project under this subsection shall not exceed 25 
     percent of the total amount of the standby interest coverage 
     for the eligible project.
       ``(C) Period of availability.--The standby interest 
     coverage for an eligible project shall be available during 
     the period--
       ``(i) beginning on a date following substantial completion 
     of the eligible project that regulatory approval to operate a 
     facility under the eligible project is suspended as a result 
     of regulatory failure or other condition determined by the 
     Secretary; and
       ``(ii) ending on a date that is not later than 5 years 
     after the eligible project is scheduled to commence 
     commercial operations.
       ``(D) Cost of coverage.--Subject to subsection (c)(4)(E), 
     the cost of standby interest coverage for an eligible project 
     under this subsection shall be borne by the Secretary.
       ``(E) Draws.--Any draw on the standby interest coverage for 
     an eligible project shall--
       ``(i) represent a loan;
       ``(ii) be made only if there is a delay in commercial 
     operations after the substantial completion of the eligible 
     project; and
       ``(iii) be subject to the overall credit support 
     limitations established under subsection (c)(5).
       ``(F) Interest rate.--
       ``(i) In general.--Subject to clause (ii), the interest 
     rate on a loan resulting from a draw on standby interest 
     coverage under this subsection shall be established by the 
     Secretary.
       ``(ii) Minimum rate.--The interest rate on a loan resulting 
     from a draw on standby interest coverage under this 
     subsection shall not be less than the current average market 
     yield on outstanding marketable obligations of the United 
     States with a maturity of 10 years, as of the date on which 
     the standby interest coverage is obligated.
       ``(G) Security.--The standby interest coverage for an 
     eligible project--
       ``(i) shall be payable, in whole or in part, from dedicated 
     revenue sources generated by the eligible project;
       ``(ii) shall require security for the project obligations; 
     and
       ``(iii) may have a lien on revenues described in clause 
     (i), subject to any lien securing project obligations.
       ``(H) Rights of third-party creditors.--
       ``(i) Against federal government.--A third-party creditor 
     of the obligor shall not have any right against the Federal 
     Government with respect to any draw on standby interest 
     coverage under this subsection.
       ``(ii) Assignment.--An obligor may assign the standby 
     interest coverage to 1 or more lenders or to a trustee on 
     behalf of the lenders.
       ``(I) Subordination.--A secured loan for an eligible 
     project made under this subsection shall be subordinate to 
     senior private debt issued by a lender for the eligible 
     project.
       ``(J) Nonrecourse status.--A secured loan for an eligible 
     project under this subsection shall be nonrecourse to the 
     obligor in the event of bankruptcy, insolvency, or 
     liquidation of the eligible project.
       ``(K) Fees.--The Board may impose fees at a level 
     sufficient to cover all or part of the costs to the Federal 
     Government of providing standby interest coverage for an 
     eligible project under this subsection.
       ``(3) Repayment.--
       ``(A) Terms and conditions.--The Secretary shall establish 
     a repayment schedule and terms and conditions for each loan 
     for an eligible project under this subsection based on the 
     projected cash flow from revenues for the eligible project.
       ``(B) Repayment schedule.--Scheduled repayments of 
     principal or interest on a loan under this subsection shall--
       ``(i) commence not later than 5 years after the end of the 
     period of availability specified in paragraph (2)(C); and
       ``(ii) be completed, with interest, not later than 10 years 
     after the end of the period of availability.
       ``(C) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this subsection shall 
     include--
       ``(i) the sale of electricity or generating capacity;
       ``(ii) the sale or transmission of energy;
       ``(iii) revenues associated with energy efficiency gains; 
     or
       ``(iv) other dedicated revenue sources, such as carbon use.
       ``(D) Prepayment.--
       ``(i) Use of excess revenues.--At the discretion of the 
     obligor, any excess revenues that remain after satisfying 
     scheduled debt service requirements on the project 
     obligations and secured loan, and all deposit requirements 
     under the terms of any trust agreement, bond resolution, or 
     similar agreement securing project obligations, may be 
     applied annually to prepay the secured loan without penalty.
       ``(ii) Use of proceeds of refinancing.--The secured loan 
     may be prepaid at any time without penalty from the proceeds 
     of refinancing from non-Federal funding sources.
       ``(f) Secured Loans and Loan Guarantees.--
       ``(1) In general.--
       ``(A) Agreements.--Subject to subparagraph (B), the Board, 
     in consultation with the Secretary, may enter into agreements 
     with 1 or more obligors to make secured loans for eligible 
     projects involving advanced climate technologies or systems.
       ``(B) Use of proceeds.--Subject to paragraph (2), the 
     proceeds of a secured loan for an eligible project made 
     available under this subsection shall be available, in 
     conjunction with the equity of the obligor and senior debt 
     financing for the eligible project, to pay for eligible 
     project costs.
       ``(2) Terms and limitations.--
       ``(A) In general.--A secured loan under this subsection 
     with respect to an eligible project shall be made on such 
     terms and conditions (including requirements for an audit) as 
     the Board, in consultation with the Secretary, determines 
     appropriate.
       ``(B) Maximum amount.--Subject to subsection (c)(5), the 
     total amount of the secured loan for an eligible project 
     under this subsection shall not exceed 25 percent of the 
     reasonably anticipated eligible project costs of the eligible 
     project.
       ``(C) Period of availability.--The Board may enter into a 
     contract with the owner or operator of an eligible project to 
     provide a secured loan during the period--
       ``(i) beginning on the date that the financial structure of 
     the eligible project is established; and
       ``(ii) ending on the date of the start of construction of 
     the eligible project.
       ``(D) Cost of coverage.--Subject to subsection (c)(4)(E), 
     the cost of a secured loan for an eligible project under this 
     subsection shall be borne by the Secretary.
       ``(E) Interest rate.--
       ``(i) In general.--Subject to clause (ii), the interest 
     rate on a secured loan under this subsection shall be 
     established by the Secretary.
       ``(ii) Minimum rate.--The interest rate on a loan resulting 
     from a secured loan under this subsection shall not be less 
     than the current average market yield on outstanding 
     marketable obligations of the United States of comparable 
     maturity, as of the date of the execution of the loan 
     agreement.
       ``(F) Security.--The secured loan--
       ``(i) shall be payable, in whole or in part, from dedicated 
     revenue sources generated by the eligible project;
       ``(ii) shall include a rate covenant, coverage requirement, 
     or similar security feature supporting the project 
     obligations; and
       ``(iii) may have a lien on revenues described in clause 
     (i), subject to any lien securing project obligations.
       ``(G) Rights of third-party creditors.--
       ``(i) Against federal government.--A third-party creditor 
     of the obligor shall not have any right against the Federal 
     Government with respect to any payments due to the Federal 
     Government under this subsection.
       ``(ii) Assignment.--An obligor may assign the secured loan 
     to 1 or more lenders or to a trustee on behalf of the 
     lenders.
       ``(H) Subordination.--A secured loan for an eligible 
     project made under this subsection shall be subordinate to 
     senior private debt issued by a lender for the eligible 
     project.
       ``(I) Nonrecourse status.--A secured loan for an eligible 
     project under this subsection shall be non-recourse to the 
     obligor in the event of bankruptcy, insolvency, or 
     liquidation of the eligible project.
       ``(J) Fees.--The Board may establish fees at a level 
     sufficient to cover all or a portion of the costs to the 
     Federal Government of making secured loans for an eligible 
     project under this subsection.
       ``(3) Repayment.--
       ``(A) Schedule and terms.--The Board shall establish a 
     repayment schedule and terms and conditions for each secured 
     loan for an eligible project under this subsection based on 
     the projected cash flow from revenues for the eligible 
     project.
       ``(B) Repayment schedule.--Scheduled repayments on a 
     secured loan for an eligible project under this subsection 
     shall--
       ``(i) commence not later than 5 years after the scheduled 
     start of commercial operations of the eligible project; and
       ``(ii) be completed, with interest, not later than 35 years 
     after the scheduled date of the start of commercial 
     operations of the eligible project.
       ``(C) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this subsection shall 
     include--
       ``(i) the sale of carbon or carbon compounds;
       ``(ii) the sale of electricity or generating capacity;
       ``(iii) the sale of sequestration services;
       ``(iv) the sale or transmission of energy;
       ``(v) revenues associated with energy efficiency gains; or
       ``(vi) other dedicated revenue sources.
       ``(D) Deferred payments.--
       ``(i) Authorization.--If, at any time during the 10-year 
     period beginning on the date of the scheduled start of 
     commercial operation of an eligible project, the eligible 
     project is unable to generate sufficient revenues to pay the 
     scheduled loan repayments of principal or interest on the 
     secured loan, the Secretary may, subject to clause (iii), 
     allow the obligor to add unpaid principal or interest to the 
     outstanding balance of the secured loan.

[[Page S6955]]

       ``(ii) Interest.--Any payment deferred under clause (i) 
     shall--

       ``(I) continue to accrue interest in accordance with 
     paragraph (2)(E) until fully repaid; and
       ``(II) be scheduled to be amortized over the number of 
     years remaining in the term of the loan in accordance with 
     subparagraph (B).

       ``(iii) Criteria.--

       ``(I) In general.--Any payment deferral under clause (i) 
     shall be contingent on the eligible project meeting criteria 
     established by the Secretary.
       ``(II) Repayment standards.--The criteria established under 
     subclause (I) shall include standards for reasonable 
     assurance of repayment.

       ``(E) Prepayment.--
       ``(i) Use of excess revenues.--At the discretion of the 
     obligor, any excess revenues that remain after satisfying 
     scheduled debt service requirements on the project 
     obligations and secured loan, and all deposit requirements 
     under the terms of any trust agreement, bond resolution, or 
     similar agreement securing project obligations, may be 
     applied annually to prepay the secured loan without penalty.
       ``(ii) Use of proceeds of refinancing.--The secured loan 
     may be prepaid at any time without penalty from the proceeds 
     of refinancing from non-Federal funding sources.
       ``(4) Sale of secured loans.--
       ``(A) In general.--Subject to subparagraph (B), as soon as 
     practicable after substantial completion of an eligible 
     project and after notifying the obligor, the Board may sell 
     to another entity or reoffer into the capital markets a 
     secured loan for the eligible project if the Board determines 
     that the sale or reoffering can be made on favorable terms.
       ``(B) Consent of obligor.--In making a sale or reoffering 
     under subparagraph (A), the Board may not change the original 
     terms and conditions of the secured loan without the written 
     consent of the obligor.
       ``(5) Loan guarantees.--
       ``(A) In general.--The Board may provide a loan guarantee 
     to a lender, in lieu of making a secured loan, under this 
     subsection if the Board determines that the budgetary cost of 
     the loan guarantee is substantially the same as that of a 
     secured loan.
       ``(B) Terms.--
       ``(i) In general.--Except as provided in clause (ii), the 
     terms of a guaranteed loan shall be consistent with the terms 
     for a secured loan under this subsection.
       ``(ii) Interest rate; prepayment.--The interest rate on the 
     guaranteed loan and any prepayment features shall be 
     established by negotiations between the obligor and the 
     lender, with the consent of the Board.
       ``(g) Production Incentive Payments.--
       ``(1) Secured loan.--
       ``(A) In general.--The Secretary may enter into an 
     agreement with 1 or more obligors to make a secured loan for 
     an eligible project selected under subsection (c)(4) that 
     employs 1 or more advanced climate technologies or systems.
       ``(B) Production incentive payments.--
       ``(i) In general.--Amounts loaned to an obligor under 
     subparagraph (A) shall be made available in the form of a 
     series of production incentive payments provided by the Board 
     to the obligor during a period of not more than 10 years, as 
     determined by the Board, beginning after the date on which 
     commercial project operations start at the eligible project.
       ``(ii) Amount.--Production incentive payments under clause 
     (i) shall be for an amount equal to 25 percent of the value 
     of--

       ``(I) the energy produced or transmitted by the eligible 
     project during the applicable year; or
       ``(II) any gains in energy efficiency achieved by the 
     eligible project during the applicable year.

       ``(2) Terms and limitations.--
       ``(A) In general.--A secured loan under this subsection 
     shall be subject to such terms and conditions, including any 
     covenant, representation, warranty, and requirement 
     (including a requirement for an audit) that the Secretary 
     determines to be appropriate.
       ``(B) Agreement costs.--Subject to subsection (c)(4), the 
     cost of carrying out an agreement entered into under 
     paragraph (1)(A) shall be paid by the Secretary.
       ``(C) Interest rate.--
       ``(i) In general.--Subject to clause (ii), the interest 
     rate on a secured loan under this subsection shall be 
     established by the Secretary.
       ``(ii) Minimum rate.--The interest rate on a secured loan 
     under this subsection shall not be less than the current 
     average market yield on outstanding marketable obligations of 
     the United States of comparable maturity, as of the date on 
     which the agreement under paragraph (1)(A) is executed.
       ``(D) Security.--The secured loan--
       ``(i) shall be payable, in whole or in part, from dedicated 
     revenue sources generated by the eligible project;
       ``(ii) shall include a rate covenant, coverage requirement, 
     or similar security feature supporting the eligible project 
     obligations; and
       ``(iii) may have a lien on revenues described in clause 
     (i), subject to any lien securing eligible project 
     obligations.
       ``(E) Rights of third-party creditors.--
       ``(i) Against federal government.--A third-party creditor 
     of the obligor shall not have any right against the Federal 
     Government with respect to any payments due to the Federal 
     Government under the agreement entered into under paragraph 
     (1)(A).
       ``(ii) Assignment.--An obligor may assign production 
     incentive payments to 1 or more lenders or to a trustee on 
     behalf of the lenders.
       ``(F) Subordination.--A secured loan under this subsection 
     shall be subordinate to senior private debt issued by a 
     lender for the eligible project.
       ``(G) Nonrecourse status.--A secured loan under this 
     subsection shall be nonrecourse to the obligor in the event 
     of bankruptcy, insolvency, or liquidation of the eligible 
     project.
       ``(H) Fees.--The Secretary may impose fees at a level 
     sufficient to cover all or part of the costs to the Federal 
     Government of providing production incentive payments under 
     this subsection.
       ``(3) Repayment.--
       ``(A) Schedule, terms, and conditions.--The Secretary shall 
     establish a repayment schedule and terms and conditions for 
     each secured loan under this subsection based on the 
     projected cash flow from revenues of the eligible project.
       ``(B) Repayment schedule.--Scheduled repayments of 
     principal or interest on a secured loan under this subsection 
     shall--
       ``(i) commence not later than 5 years after the date on 
     which the last production incentive payment is made by the 
     Board under paragraph (1)(B); and
       ``(ii) be completed, with interest, not later than 10 years 
     after the date on which the last production incentive payment 
     is made.
       ``(C) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this subsection include--
       ``(i) the sale of electricity or generating capacity,
       ``(ii) the sale or transmission of energy;
       ``(iii) revenues associated with energy efficiency gains; 
     or
       ``(iv) other dedicated revenue sources.
       ``(D) Deferred payments.--
       ``(i) Authorization.--If, at any time during the 10-year 
     period beginning on the date on which commercial operations 
     of the eligible project start, the eligible project is unable 
     to generate sufficient revenues to pay the scheduled loan 
     repayments of principal or interest on a secured loan under 
     this subsection, the Secretary may, subject to criteria 
     established by the Secretary (including standards for 
     reasonable assurances of repayment), allow the obligor to add 
     unpaid principal and interest to the outstanding balance of 
     the secured loan.
       ``(ii) Interest.--Any payment deferred under clause (i) 
     shall--

       ``(I) continue to accrue interest in accordance with 
     paragraph (2)(C) until fully repaid; and
       ``(II) be scheduled to be amortized over the number of 
     years remaining in the term of the loan in accordance with 
     subparagraph (B).

       ``(E) Prepayment.--
       ``(i) Use of excess revenues.--At the discretion of the 
     obligor, any excess revenues that remain after satisfying 
     scheduled debt service requirements on the eligible project 
     obligations and the secured loan, and all deposit 
     requirements under the terms of any trust agreement, bond 
     resolution, or similar agreement securing eligible project 
     obligations, may be applied annually to prepay loans pursuant 
     to an agreement entered into under paragraph (1)(A) without 
     penalty.
       ``(ii) Use of proceeds of refinancing.--The secured loan 
     may be prepaid at any time without penalty from the proceeds 
     of refinancing from non-Federal funding sources.
       ``(4) Sale of secured loans.--
       ``(A) In general.--Subject to subparagraph (B), as soon as 
     practicable after the date on which the last production 
     incentive payment is made to the obligor under paragraph 
     (1)(B) and after notifying the obligor, the Secretary may 
     sell to another entity or reoffer into the capital markets a 
     secured loan for the eligible project if the Secretary 
     determines that the sale or reoffering can be made on 
     favorable terms.
       ``(B) Consent required.--In making a sale or reoffering 
     under subparagraph (A), the Board may not change the original 
     terms and conditions of the secured loan without the written 
     consent of the obligor.
       ``(h) Other Credit-based Financial Assistance Mechanisms 
     for Eligible Projects.--
       ``(1) In general.--
       ``(A) Agreements.--The Board may enter into an agreement 
     with 1 or more obligors to make a secured loan to the 
     obligors for eligible projects selected under subsection (c) 
     that employ advanced technologies or systems, the proceeds of 
     which shall be used to--
       ``(i) finance eligible project costs; or
       ``(ii) enhance eligible project revenues.
       ``(B) Credit-based financial assistance.--Amounts made 
     available as a secured loan under subparagraph (A) shall be 
     provided by the Board to the obligor in the form of credit-
     based financial assistance mechanisms that are not otherwise 
     specifically provided for in subsections (d) through (g), as 
     determined to be appropriate by the Secretary.
       ``(2) Terms and limitations.--
       ``(A) In general.--A secured loan under this subsection 
     shall be subject to such terms and conditions (including any 
     covenants, representations, warranties, and requirements 
     (including a requirement for an audit)) as the Secretary 
     determines to be appropriate.

[[Page S6956]]

       ``(B) Maximum amount.--Subject to subsection (c)(5), the 
     total amount of the secured loan under this subsection shall 
     not exceed 50 percent of the reasonably anticipated eligible 
     project costs.
       ``(C) Period of availability.--The Board may enter into a 
     contract with the obligor to provide credit-based financial 
     assistance to an eligible project during the period--
       ``(i) beginning on the date that the financial structure of 
     the eligible project is established; and
       ``(ii) ending on the date of the start of construction of 
     the eligible project.
       ``(D) Agreement costs.--Subject to subsection (c)(4)(E), 
     the cost of carrying out an agreement entered into under 
     paragraph (1)(A) shall be paid by the Board.
       ``(E) Interest rate.--
       ``(i) In general.--Subject to clause (ii), the interest 
     rate on a secured loan under this subsection shall be 
     established by the Board.
       ``(ii) Minimum rate.--The interest rate on a secured loan 
     under this subsection shall not be less than the current 
     average market yield on outstanding marketable obligations of 
     the United States of comparable maturity, as of the date of 
     the execution of the secured loan agreement.
       ``(F) Security.--The secured loan--
       ``(i) shall be payable, in whole or in part, from dedicated 
     revenue sources generated by the eligible project;
       ``(ii) shall include a rate covenant, coverage requirement, 
     or similar security feature supporting the eligible project 
     obligations; and
       ``(iii) may have a lien on revenues described in clause 
     (i), subject to any lien securing eligible project 
     obligations.
       ``(G) Rights of third-party creditors.--
       ``(i) Against federal government.--A third-party creditor 
     of the obligor shall not have any right against the Federal 
     Government with respect to any payments due to the Federal 
     Government under this subsection.
       ``(ii) Assignment.--An obligor may assign payments made 
     pursuant to an agreement to provide credit-based financial 
     assistance under this subsection to 1 or more lenders or to a 
     trustee on behalf of the lenders.
       ``(H) Subordination.--A secured loan under this subsection 
     shall be subordinate to senior private debt issued by a 
     lender for the eligible project.
       ``(I) Nonrecourse status.--A secured loan under this 
     subsection shall be nonrecourse to the obligor in the event 
     of bankruptcy, insolvency, or liquidation of the eligible 
     project.
       ``(J) Fees.--The Board may establish fees at a level 
     sufficient to cover all or part of the costs to the Federal 
     Government of providing credit-based financial assistance 
     under this subsection.
       ``(3) Repayment.--
       ``(A) Schedule and terms and conditions.--The Board shall 
     establish a repayment schedule and terms and conditions for 
     each secured loan under this subsection based on the 
     projected cash flow from eligible project revenues.
       ``(B) Repayment schedule.--Scheduled loan repayments of 
     principal or interest on a secured loan under this subsection 
     shall--
       ``(i) commence not later than 5 years after the date of 
     substantial completion of the eligible project; and
       ``(ii) be completed, with interest, not later than 35 years 
     after the date of substantial completion of the eligible 
     project.
       ``(C) Sources of repayment funds.--The sources of funds for 
     scheduled loan repayments under this subsection shall 
     include--
       ``(i) the sale of electricity or generating capacity;
       ``(ii) the sale or transmission of energy;
       ``(iii) revenues associated with energy efficiency gains; 
     or
       ``(iv) other dedicated revenue sources, such as carbon 
     sequestration.
       ``(D) Deferred payments.--
       ``(i) Authorization.--If, at any time during the 10-year 
     period beginning on the date of the start of commercial 
     operations of the eligible project, the eligible project is 
     unable to generate sufficient revenues to pay the scheduled 
     loan repayments of principal or interest on a secured loan 
     under this subsection, the Secretary may, subject to criteria 
     established by the Secretary (including standards for 
     reasonable assurances of repayment), allow the obligor to add 
     unpaid principal and interest to the outstanding balance of 
     the secured loan.
       ``(ii) Interest.--Any payment deferred under clause (i) 
     shall--

       ``(I) continue to accrue interest in accordance with 
     paragraph (2)(E) until fully repaid; and
       ``(II) be scheduled to be amortized over the number of 
     years remaining in the term of the loan in accordance with 
     subparagraph (B).

       ``(E) Prepayment.--
       ``(i) Use of excess revenues.--At the discretion of the 
     obligor, any excess revenues that remain after satisfying 
     scheduled debt service requirements on the eligible project 
     obligations and secured loan, and all deposit requirements 
     under the terms of any trust agreement, bond resolution, or 
     similar agreement securing eligible project obligations, may 
     be applied annually to prepay a secured loan under this 
     subsection without penalty.
       ``(ii) Use of proceeds of refinancing.--A secured loan 
     under this subsection may be prepaid at any time without 
     penalty from the proceeds of refinancing from non-Federal 
     funding sources.
       ``(4) Sale of secured loans.--
       ``(A) In general.--Subject to subparagraph (B), as soon as 
     practicable after the start of commercial operations of an 
     eligible project and after notifying the obligor, the Board 
     may sell to another entity or reoffer into the capital 
     markets a secured loan for the eligible project under this 
     subsection if the Secretary determines that the sale or 
     reoffering can be made on favorable terms.
       ``(B) Consent of obligor.--In making a sale or reoffering 
     under subparagraph (A), the Board may not change the original 
     terms and conditions of the secured loan without the written 
     consent of the obligor.
       ``(i) Federal, State, and Local Regulatory Requirements.--
     The provision of Federal financial assistance to an eligible 
     project under this section shall not--
       ``(1) relieve any recipient of the assistance of any 
     obligation to obtain any required Federal, State, or local 
     regulatory requirement, permit, or approval with respect to 
     the eligible project;
       ``(2) limit the right of any unit of Federal, State, or 
     local government to approve or regulate any rate of return on 
     private equity invested in the eligible project; or
       ``(3) otherwise supersede any Federal, State, or local law 
     (including any regulation) applicable to the construction or 
     operation of the eligible project.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2006 through 
     2010, to remain available until expended.''.

    Subtitle B--Climate Change Technology Deployment in Developing 
                               Countries

     SEC. 1511. CLIMATE CHANGE TECHNOLOGY DEPLOYMENT IN DEVELOPING 
                   COUNTRIES.

       The Global Environmental Protection Assistance Act of 1989 
     (Public Law 101-240; 103 Stat. 2521) is amending by adding at 
     the end the following:

        ``PART C--TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES

     ``SEC. 731. DEFINITIONS.

       ``In this part:
       ``(1) Carbon sequestration.--The term `carbon 
     sequestration' means the capture of carbon dioxide through 
     terrestrial, geological, biological, or other means, which 
     prevents the release of carbon dioxide into the atmosphere.
       ``(2) Greenhouse gas.--The term `greenhouse gas' means 
     carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, 
     perfluorocarbons, and sulfur hexafluoride.
       ``(3) Greenhouse gas intensity.--The term `greenhouse gas 
     intensity' means the ratio of greenhouse gas emissions to 
     economic output.

     ``SEC. 732. REDUCTION OF GREENHOUSE GAS INTENSITY.

       ``(a) Lead Agency.--
       ``(1) In general.--The Department of State shall act as the 
     lead agency for integrating into United States foreign policy 
     the goal of reducing greenhouse gas intensity in developing 
     countries.
       ``(2) Reports.--
       ``(A) Initial report.--Not later than 180 days after the 
     date of enactment of this part, the Secretary of State shall 
     submit to the appropriate authorizing and appropriating 
     committees of Congress an initial report, based on the most 
     recent information available to the Secretary from reliable 
     public sources, that identifies the 25 developing countries 
     that are the greenhouse gas emitters, including for each 
     country--
       ``(i) an estimate of the quantity and types of energy used;
       ``(ii) an estimate of the greenhouse gas intensity of the 
     energy, manufacturing, agricultural, and transportation 
     sectors;
       ``(iii) a description the progress of any significant 
     projects undertaken to reduce greenhouse gas intensity;
       ``(iv) a description of the potential for undertaking 
     projects to reduce greenhouse gas intensity;
       ``(v) a description of any obstacles to the reduction of 
     greenhouse gas intensity; and
       ``(vi) a description of the best practices learned by the 
     Agency for International Development from conducting previous 
     pilot and demonstration projects to reduce greenhouse gas 
     intensity.
       ``(B) Update.--Not later than 18 months after the date on 
     which the initial report is submitted under subparagraph (A), 
     the Secretary shall submit to the appropriate authorizing and 
     appropriating committees of Congress, based on the best 
     information available to the Secretary, an update of the 
     information provided in the initial report.
       ``(C) Use.--
       ``(i) Initial report.--The Secretary of State shall use the 
     initial report submitted under subparagraph (A) to establish 
     baselines for the developing countries identified in the 
     report with respect to the information provided under clauses 
     (i) and (ii) of that subparagraph.
       ``(ii) Annual reports.--The Secretary of State shall use 
     the annual reports prepared under subparagraph (B) and any 
     other information available to the Secretary to track the 
     progress of the developing countries with respect to reducing 
     greenhouse gas intensity.
       ``(b) Projects.--The Secretary of State, in coordination 
     with Administrator of the United States Agency for 
     International Development, shall (directly or through 
     agreements with the World Bank, the International Monetary 
     Fund, the Overseas Private Investment Corporation, and other 
     development institutions) provide assistance

[[Page S6957]]

     to developing countries specifically for projects to reduce 
     greenhouse gas intensity, including projects to--
       ``(1) leverage, through bilateral agreements, funds for 
     reduction of greenhouse gas intensity;
       ``(2) increase private investment in projects and 
     activities to reduce greenhouse gas intensity; and
       ``(3) expedite the deployment of technology to reduce 
     greenhouse gas intensity.
       ``(c) Focus.--In providing assistance under subsection (b), 
     the Secretary of State shall focus on--
       ``(1) promoting the rule of law, property rights, contract 
     protection, and economic freedom; and
       ``(2) increasing capacity, infrastructure, and training.
       ``(d) Priority.--In providing assistance under subsection 
     (b), the Secretary of State shall give priority to projects 
     in the 25 developing countries identified in the report 
     submitted under subsection (a)(2)(A).

     ``SEC. 733. TECHNOLOGY INVENTORY FOR DEVELOPING COUNTRIES.

       ``(a) In General.--The Secretary of State, in coordination 
     with the Secretary of Energy and the Secretary of Commerce, 
     shall conduct an inventory of greenhouse gas intensity 
     reducing technologies that are developed, or under 
     development in the United States, to identify technologies 
     that are suitable for transfer to, deployment in, and 
     commercialization in the developing countries identified in 
     the report submitted under section 732(a)(2)(A).
       ``(b) Report.--Not later than 180 days after the completion 
     of the inventory under subsection (a), the Secretary of State 
     and the Secretary of Energy shall jointly submit to Congress 
     a report that--
       ``(1) includes the results of the completed inventory;
       ``(2) identifies obstacles to the transfer, deployment, and 
     commercialization of the inventoried technologies;
       ``(3) includes results from previous Federal reports 
     related to the inventoried technologies; and
       ``(4) includes an analysis of market forces related to the 
     inventoried technologies.

     ``SEC. 734. TRADE-RELATED BARRIERS TO EXPORT OF GREENHOUSE 
                   GAS INTENSITY REDUCING TECHNOLOGIES.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this part, the United States Trade 
     Representative shall (as appropriate and consistent with 
     applicable bilateral, regional, and mutual trade 
     agreements)--
       ``(1) identify trade-relations barriers maintained by 
     foreign countries to the export of greenhouse gas intensity 
     reducing technologies and practices from the United States to 
     the developing countries identified in the report submitted 
     under section 732(a)(2)(A); and
       ``(2) negotiate with foreign countries for the removal of 
     those barriers.
       ``(b) Annual Report.--Not later than 1 year after the date 
     on which a report is submitted under subsection (a)(1) and 
     annually thereafter, the United States Trade Representative 
     shall submit to Congress a report that describes any progress 
     made with respect to removing the barriers identified by the 
     United States Trade Representative under subsection (a)(1).

     ``SEC. 735. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY 
                   EXPORT INITIATIVE.

       ``(a) In General.--There is established an interagency 
     working group to carry out a Greenhouse Gas Intensity 
     Reducing Technology Export Initiative to--
       ``(1) promote the export of greenhouse gas intensity 
     reducing technologies and practices from the United States;
       ``(2) identify developing countries that should be 
     designated as priority countries for the purpose of exporting 
     greenhouse gas intensity reducing technologies and practices, 
     based on the report submitted under section 732(a)(2)(A);
       ``(3) identify potential barriers to adoption of exported 
     greenhouse gas intensity reducing technologies and practices 
     based on the reports submitted under section 734; and
       ``(4) identify previous efforts to export energy 
     technologies to learn best practices.
       ``(b) Composition.--The working group shall be composed 
     of--
       ``(1) the Secretary of State, who shall act as the head of 
     the working group;
       ``(2) the Administrator of the United States Agency for 
     International Development;
       ``(3) the United States Trade Representative;
       ``(4) a designee of the Secretary of Energy; and
       ``(5) a designee of the Secretary of Commerce.
       ``(c) Performance Reviews and Reports.--Not later than 180 
     days after the date of enactment of this part and each year 
     thereafter, the interagency working group shall--
       ``(1) conduct a performance review of actions taken and 
     results achieved by the Federal Government (including each of 
     the agencies represented on the interagency working group) to 
     promote the export of greenhouse gas intensity reducing 
     technologies and practices from the United States; and
       ``(2) submit to the appropriate authorizing and 
     appropriating committees of Congress a report that describes 
     the results of the performance reviews and evaluates progress 
     in promoting the export of greenhouse gas intensity reducing 
     technologies and practices from the United States, including 
     any recommendations for increasing the export of the 
     technologies and practices.

     ``SEC. 736. TECHNOLOGY DEMONSTRATION PROJECTS.

       ``(a) In General.--The Secretary of State, in coordination 
     with the Secretary of Energy and the Administrator of the 
     United States Agency for International Development, shall 
     promote the adoption of technologies and practices that 
     reduce greenhouse gas intensity in developing countries in 
     accordance with this section.
       ``(b) Demonstration Projects.--
       ``(1) In general.--The Secretaries and the Administrator 
     shall plan, coordinate, and carry out, or provide assistance 
     for the planning, coordination, or carrying out of, 
     demonstration projects under this section in at least 10 
     eligible countries, as determined by the Secretaries and the 
     Administrator.
       ``(2) Eligibility.--A country shall be eligible for 
     assistance under this subsection if the Secretaries and the 
     Administrator determine that the country has demonstrated a 
     commitment to--
       ``(A) just governance, including--
       ``(i) promoting the rule of law;
       ``(ii) respecting human and civil rights;
       ``(iii) protecting private property rights; and
       ``(iv) combating corruption; and
       ``(B) economic freedom, including economic policies that--
       ``(i) encourage citizens and firms to participate in global 
     trade and international capital markets;
       ``(ii) promote private sector growth and the sustainable 
     management of natural resources; and
       ``(iii) strengthen market forces in the economy.
       ``(3) Selection.--In determining which eligible countries 
     to provide assistance to under paragraph (1), the Secretaries 
     and the Administrator shall consider--
       ``(A) the opportunity to reduce greenhouse gas intensity in 
     the eligible country; and
       ``(B) the opportunity to generate economic growth in the 
     eligible country.
       ``(4) Types of projects.--Demonstration projects under this 
     section may include--
       ``(A) coal gasification, coal liquefaction, and clean coal 
     projects;
       ``(B) carbon sequestration projects;
       ``(C) cogeneration technology initiatives;
       ``(D) renewable projects; and
       ``(E) lower emission transportation.

     ``SEC. 737. FELLOWSHIP AND EXCHANGE PROGRAMS.

       ``The Secretary of State, in coordination with the 
     Secretary of Energy, the Secretary of Commerce, and the 
     Administrator of the Environmental Protection Agency, shall 
     carry out fellowship and exchange programs under which 
     officials from developing countries visit the United States 
     to acquire expertise and knowledge of best practices to 
     reduce greenhouse gas intensity in their countries.

     ``SEC. 738. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this part (other than section 736).

     ``SEC. 739. EFFECTIVE DATE.

       ``Except as otherwise provided in this part, this part 
     takes effect on October 1, 2005.''.
                                 ______
                                 
  SA 818. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 15, strike lines 3 through 20.
       On page 719, strike lines 11 through 20 and insert the 
     following:

     as part of the process of updating the Master Plan Study for 
     the Capitol complex, shall--
       (A) carry out a study to evaluate the energy infrastructure 
     of the Capitol complex to determine how to augment the 
     infrastructure to become more energy efficient--
       (i) by using unconventional and renewable energy resources;
       (ii) by--

       (I) incorporating new technologies to implement effective 
     green building solutions;
       (II) adopting computer-based building management systems; 
     and
       (III) recommending strategies based on end-user behavioral 
     changes to implement low-cost environmental gains; and

       (iii) in a manner that would enable the Capitol complex to 
     have reliable utility service in the event of power 
     fluctuations, shortages, or outages;
       (B) carry out a study to explore the feasibility of 
     installing energy and water conservation measures on the 
     rooftop of the Dirksen Senate Office Building, including the 
     area directly above the food service facilities in the center 
     of the building, including the installation of--
       (i) a vegetative covering area, using native species to the 
     maximum extent practicable, to--

       (I) insulate and increase the energy efficiency of the 
     building;
       (II) reduce precipitation runoff and conserve water for 
     landscaping or other uses;
       (III) increase, and provide more efficient use of, 
     available outdoor space through management of the rooftop of 
     the center of the building as a park or garden area for 
     occupants of the building; and
       (IV) improve the aesthetics of the building; and

       (ii) onsite renewable energy and other state-of-the-art 
     technologies to--

[[Page S6958]]

       (I) improve the energy efficiency and energy security of 
     the building or the Capitol complex by providing additional 
     or backup sources of power in the event of a power shortage 
     or other emergency;
       (II) reduce the use of resources by the building; or
       (III) enhance worker productivity; and

       (C) not later than 180 days after the date of enactment of 
     this Act, submit to Congress a report describing the findings 
     and recommendations of the study under subparagraph (B).
                                 ______
                                 
  SA 819. Mr. TALENT (for himself and Mr. Johnson) submitted an 
amendment intended to be proposed by him to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 420, strike lines 5 through 16 and insert the 
     following:

     SEC. 702. FUEL USE CREDITS.

       (a) In General.--Section 312 of the Energy Policy Act of 
     1992 (42 U.S.C. 13220) is amended to read as follows:

     ``SEC. 312. FUEL USE CREDITS.

       ``(a) Definitions.--In this section:
       ``(1) Biodiesel.--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).
       ``(2) Qualifying volume.--The term `qualifying volume' 
     means--
       ``(A) in the case of biodiesel, when used as a component of 
     fuel containing at least 20 percent biodiesel by volume--
       ``(i) 450 gallons; or
       ``(ii) if the Secretary determines by rule that the average 
     annual alternative fuel use in light duty vehicles by fleets 
     and covered persons exceeds 450 gallons or gallon 
     equivalents, the amount of the average annual alternative 
     fuel use; and
       ``(B) in the case of an alternative fuel, the amount of the 
     fuel determined by the Secretary to have an equivalent energy 
     content to the amount of biodiesel defined as a qualifying 
     volume under subparagraph (A).
       ``(b) Allocation.--
       ``(1) In general.--The Secretary shall allocate 1 credit 
     under this section to a fleet or covered person for each 
     qualifying volume of alternative fuel or biodiesel purchased 
     for use in a vehicle operated by the fleet.
       ``(2) Limitation.--The Secretary may not allocate a credit 
     under this section for the purchase of an alternative fuel or 
     biodiesel that is required by Federal or State law.
       ``(3) Documentation.--A fleet or covered person seeking a 
     credit under paragraph (1) shall provide written 
     documentation to the Secretary supporting the allocation of 
     the credit to the fleet or covered person.
       ``(c) Use.--At the request of a fleet or covered person 
     allocated a credit under subsection (b), the Secretary shall, 
     for the year in which the purchase of a qualifying volume is 
     made, consider the purchase to be the acquisition of 1 
     alternative fueled vehicle that the fleet or covered person 
     is required to acquire under this title, title IV, or title 
     V.
       ``(d) Treatment.--A credit provided to a fleet or covered 
     person under this section shall be considered to be a credit 
     under section 508.
       ``(e) Issuance of Rule.--Not later than 180 days after the 
     date of enactment of the Energy Policy Act of 2005, the 
     Secretary shall issue a rule establishing procedures for the 
     implementation of this section.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy Act of 1992 is amended by striking the item 
     relating to section 312 and inserting the following:

``Sec. 312. Fuel use credits.''.
                                 ______
                                 
  SA 820. Mrs. HUTCHISON (for herself, Mr. Cornyn, Mr. Inhofe, and Ms. 
Landrieu) submitted an amendment intended to be proposed by her to the 
bill H.R. 6, to ensure jobs for our future with secure, affordable, and 
reliable energy; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. 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. __. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL 
                   EXPENDITURES.

       (a) In General.--Section 167 (relating to depreciation), as 
     amended by this Act, 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.
                                 ______
                                 
  SA 821. Mr. KYL submitted an amendment intended to be proposed by him 
to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       At the appropriate place add the following:

     SEC. __. INCREASE IN EXCLUSION EQUIVALENT OF UNIFIED CREDIT 
                   AGAINST ESTATE TAX; REDUCTION IN ESTATE TAX 
                   RATE TO CAPITAL GAINS RATE.

       (a) Increase in Exclusion Equivalent of Unified Credit.--
     Subsection (c) of section 2010 of the Internal Revenue Code 
     of 1986 (relating to unified credit against estate tax) is 
     amended to read as follows:
       ``(c) Applicable Credit Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable credit amount is the amount of the tentative tax 
     which would be determined under section 2001(c) if the amount 
     with respect to which such tentative tax is to be computed 
     were the applicable exclusion amount. For purposes of the 
     preceding sentence, the applicable exclusion amount is 
     $10,000,000.
       ``(2) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     paragraph (1) shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.
       (b) Estate Tax Flat Rate Equal to Capital Gains Rate.--
     Subsection (c) of section 2001 of the Internal Revenue Code 
     of 1986 (relating to imposition and rate of tax) is amended 
     to read as follows:
       ``(c) Rate of Tentative Tax.--In the case of estates of 
     decedents dying, and gifts made, in any calendar year after 
     2009, the rate of the tentative tax is the rate specified in 
     section 1(h)(1)(C) for such year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, and gifts made, 
     after December 31, 2009.
       (d) Modifications to Estate Tax.--
       (1) In general.--Subtitles A and E of title V of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001, 
     and the amendments made by such subtitles, are hereby 
     repealed; and the Internal Revenue Code of 1986 shall be 
     applied as if such subtitles, and amendments, had never been 
     enacted.
       (2) Sunset not to apply.--
       (A) Subsection (a) of section 901 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001 is amended by 
     striking ``this Act'' and all that follows and inserting 
     ``this Act (other than title V) shall not apply to taxable, 
     plan, or limitation years beginning after December 31, 
     2010.''.
       (B) Subsection (b) of such section 901 is amended by 
     striking ``, estates, gifts, and transfers''.
       (3) Conforming amendment.--Subsection (e) of section 511 of 
     the Economic Growth and Tax Relief Reconciliation Act of 
     2001, and the amendment made by such subsection, are hereby 
     repealed; and the Internal Revenue Code of 1986 shall be 
     applied as if such subsection and amendment had never been 
     enacted.
                                 ______
                                 
  SA 822. Mr. VOINOVICH (for himself and Mr. DeWine) submitted an 
amendment intended to be proposed by him to the bill H.R. 6, to ensure 
jobs for our

[[Page S6959]]

future with secure, affordable, and reliable energy; which was ordered 
to lie on the table; as follows:

       On page 120, between lines 20 and 21, insert the following:

     SEC. 14__. FUEL EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.

       (a) In General.--The Secretary and the Administrator of the 
     National Aeronautics and Space Administration shall enter 
     into a cooperative agreement to carry out a multi-year engine 
     development program to advance technologies to enable more 
     fuel efficient, turbine-based propulsion and power systems 
     for aeronautical and industrial applications.
       (b) Performance Objective.--The fuel efficiency performance 
     objective for the program shall be to achieve a fuel 
     efficiency improvement of more than 10 percent by exploring--
       (1) advanced concepts, alternate propulsion, and power 
     configurations, including hybrid fuel cell powered systems; 
     and
       (2) the use of alternate fuel in conventional or 
     nonconventional turbine-based systems.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $60,000,000 for each of fiscal years 2006 through 2010.
                                 ______
                                 
  SA 823. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 15, strike lines 3 through 20.
       On page 719, strike lines 11 through 20 and insert the 
     following:
     as part of the process of updating the Master Plan Study for 
     the Capitol complex, shall--
       (A) carry out a study to evaluate the energy infrastructure 
     of the Capitol complex to determine how to augment the 
     infrastructure to become more energy efficient--
       (i) by using unconventional and renewable energy resources; 
     and
       (ii) in a manner that would enable the Capitol complex to 
     have reliable utility service in the event of power 
     fluctuations, shortages, or outages;
       (B) carry out a study to explore the feasibility of 
     installing energy and water conservation measures on the 
     rooftop of the Dirksen Senate Office Building, including the 
     area directly above the food service facilities in the center 
     of the building, including the installation of--
       (i) a vegetative covering area, using native species to the 
     maximum extent practicable, to--

       (I) insulate and increase the energy efficiency of the 
     building;
       (II) reduce precipitation runoff and conserve water for 
     landscaping or other uses;
       (III) increase, and provide more efficient use of, 
     available outdoor space through management of the rooftop of 
     the center of the building as a park or garden area for 
     occupants of the building; and
       (IV) improve the aesthetics of the building; and

       (ii) onsite renewable energy and other state-of-the-art 
     technologies to--

       (I) improve the energy efficiency and energy security of 
     the building or the Capitol complex by providing additional 
     or backup sources of power in the event of a power shortage 
     or other emergency;
       (II) reduce the use of resources by the building; or
       (III) enhance worker productivity; and

       (C) not later than 180 days after the date of enactment of 
     this Act, submit to Congress a report describing the findings 
     and recommendations of the study under subparagraph (B).
                                 ______
                                 
  SA 824. Ms. COLLINS (for herself, Ms. Cantwell, Ms. Snowe, Mr. 
Jeffords, and Mr. DeWine) submitted an amendment intended to be 
proposed by her to the bill H.R. 6, to ensure jobs for our future with 
secure, affordable, and reliable energy; which was ordered to lie on 
the table; as follows:

       On page 556, between lines 9 and 10, insert the following 
     new section:

     SEC. 972. ABRUPT CLIMATE CHANGE RESEARCH PROGRAM.

       (a) Establishment of Program.--The Secretary of Commerce 
     shall establish within the Office of Oceanic and Atmospheric 
     Research of the National Oceanic and Atmospheric 
     Administration, and shall carry out, a program of scientific 
     research on abrupt climate change.
       (b) Purposes of Program.--The purposes of the program are 
     as follows:
       (1) To develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order to 
     sufficiently identify and describe past instances of abrupt 
     climate change.
       (2) To improve understanding of thresholds and 
     nonlinearities in geophysical systems related to the 
     mechanisms of abrupt climate change.
       (3) To incorporate such mechanisms into advanced 
     geophysical models of climate change.
       (4) To test the output of such models against an improved 
     global array of records of past abrupt climate changes.
       (c) Abrupt Climate Change Defined.--In this section, the 
     term ``abrupt climate change'' means a change in the climate 
     that occurs so rapidly or unexpectedly that human or natural 
     systems have difficulty adapting to the climate as changed.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Department of Commerce for each of 
     fiscal years 2006 through 2008, to remain available until 
     expended, $10,000,000 to carry out the research program 
     required under this section.
                                 ______
                                 
  SA 825. Mr. KERRY submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 208, after line 24, insert the following:

     SEC. 303. SMALL BUSINESS AND AGRICULTURAL PRODUCER ENERGY 
                   EMERGENCY DISASTER LOAN PROGRAM.

       (a) Small Business Producer Energy Emergency Disaster Loan 
     Program.--
       (1) Disaster loan authority.--Section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)) is amended by inserting after 
     paragraph (3) the following:
       ``(4)(A) In this paragraph--
       ``(i) the term `base price index' means the moving average 
     of the closing unit price on the New York Mercantile Exchange 
     for heating oil, natural gas, gasoline, or propane for the 10 
     days, in each of the most recent 2 preceding years, which 
     correspond to the trading days described in clause (ii);
       ``(ii) the term `current price index' means the moving 
     average of the closing unit price on the New York Mercantile 
     Exchange, for the 10 most recent trading days, for contracts 
     to purchase heating oil, natural gas, gasoline, or propane 
     during the subsequent calendar month, commonly known as the 
     `front month'; and
       ``(iii) the term `significant increase' means--
       ``(I) with respect to the price of heating oil, natural 
     gas, gasoline, or propane, any time the current price index 
     exceeds the base price index by not less than 40 percent; and
       ``(II) with respect to the price of kerosene, any increase 
     which the Administrator, in consultation with the Secretary 
     of Energy, determines to be significant.
       ``(B) The Administration may make such loans, either 
     directly or in cooperation with banks or other lending 
     institutions through agreements to participate on an 
     immediate or deferred basis, to assist a small business 
     concern that has suffered or that is likely to suffer 
     substantial economic injury on or after January 1, 2005, as 
     the result of a significant increase in the price of heating 
     oil, natural gas, gasoline, propane, or kerosene occurring on 
     or after January 1, 2005.
       ``(C) Any loan or guarantee extended pursuant to this 
     paragraph shall be made at the same interest rate as economic 
     injury loans under paragraph (2).
       ``(D) No loan may be made under this paragraph, either 
     directly or in cooperation with banks or other lending 
     institutions through agreements to participate on an 
     immediate or deferred basis, if the total amount outstanding 
     and committed to the borrower under this subsection would 
     exceed $1,500,000, unless such borrower constitutes a major 
     source of employment in its surrounding area, as determined 
     by the Administration, in which case the Administration, in 
     its discretion, may waive the $1,500,000 limitation.
       ``(E) For purposes of assistance under this paragraph--
       ``(i) a declaration of a disaster area based on conditions 
     specified in this paragraph shall be required, and shall be 
     made by the President or the Administrator; or
       ``(ii) if no declaration has been made pursuant to clause 
     (i), the Governor of a State in which a significant increase 
     in the price of heating oil, natural gas, gasoline, propane, 
     or kerosene has occurred may certify to the Administration 
     that small business concerns have suffered economic injury as 
     a result of such increase and are in need of financial 
     assistance which is not otherwise available on reasonable 
     terms in that State, and upon receipt of such certification, 
     the Administration may make such loans as would have been 
     available under this paragraph if a disaster declaration had 
     been issued.
       ``(F) Notwithstanding any other provision of law, loans 
     made under this paragraph may be used by a small business 
     concern described in subparagraph (B) to convert from the use 
     of heating oil, natural gas, gasoline, propane, or kerosene 
     to a renewable or alternative energy source, including 
     agriculture and urban waste, geothermal energy, cogeneration, 
     solar energy, wind energy, or fuel cells.''.
       (2) Conforming amendments.--Section 3(k) of the Small 
     Business Act (15 U.S.C. 632(k)) is amended--
       (A) by inserting ``, significant increase in the price of 
     heating oil, natural gas, gasoline, propane, or kerosene'' 
     after ``civil disorders''; and
       (B) by inserting ``other'' before ``economic''.
       (b) Agricultural Producer Emergency Loans.--
       (1) In general.--Section 321(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961(a)) is amended--
       (A) in the first sentence--
       (i) by striking ``operations have'' and inserting 
     ``operations (i) have''; and
       (ii) by inserting before ``: Provided,'' the following: ``, 
     or (ii)(I) are owned or operated by such an applicant that is 
     also a small business concern (as defined in section 3 of

[[Page S6960]]

     the Small Business Act (15 U.S.C. 632)), and (II) have 
     suffered or are likely to suffer substantial economic injury 
     on or after January 1, 2005, as the result of a significant 
     increase in energy costs or input costs from energy sources 
     occurring on or after January 1, 2005, in connection with an 
     energy emergency declared by the President or the 
     Secretary'';
       (B) in the third sentence, by inserting before the period 
     at the end the following: ``or by an energy emergency 
     declared by the President or the Secretary''; and
       (C) in the fourth sentence--
       (i) by inserting ``or energy emergency'' after ``natural 
     disaster'' each place that term appears; and
       (ii) by inserting ``or declaration'' after ``emergency 
     designation''.
       (2) Funding.--Funds available on the date of enactment of 
     this Act for emergency loans under subtitle C of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
     seq.) shall be available to carry out the amendments made by 
     subparagraph (A) to meet the needs resulting from natural 
     disasters.
       (c) Guidelines and Rulemaking.--
       (1) Guidelines.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration and the Secretary of Agriculture 
     shall each issue guidelines to carry out this section and the 
     amendments made by this section, which guidelines shall 
     become effective on the date of their issuance.
       (2) Rulemaking.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration, after consultation with the 
     Secretary of Energy, shall promulgate regulations specifying 
     the method for determining a significant increase in the 
     price of kerosene under section 7(b)(4)(A)(iii)(II) of the 
     Small Business Act (15 U.S.C. 636(b)(4)(A)(iii)(II)), as 
     added by this section.
       (d) Reports.--
       (1) Small business administration.--Not later than 12 
     months after the date on which the Administrator of the Small 
     Business Administration issues guidelines under subsection 
     (c)(1), and annually thereafter, the Administrator shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives, a report on the 
     effectiveness of the assistance made available under section 
     7(b)(4) of the Small Business Act, as added by this section, 
     including--
       (A) the number of small business concerns that applied for 
     a loan under such section 7(b)(4) and the number of those 
     that received such loans;
       (B) the dollar value of those loans;
       (C) the States in which the small business concerns that 
     received such loans are located;
       (D) the type of energy that caused the significant increase 
     in the cost for the participating small business concerns; 
     and
       (E) recommendations for ways to improve the assistance 
     provided under such section 7(b)(4), if any.
       (2) Department of agriculture.--Not later than 12 months 
     after the date on which the Secretary of Agriculture issues 
     guidelines under subsection (c)(1), and annually thereafter, 
     the Secretary shall submit to the Committee on Small Business 
     and Entrepreneurship and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate and to the Committee on 
     Small Business and the Committee on Agriculture of the House 
     of Representatives, a report that--
       (A) describes the effectiveness of the assistance made 
     available under section 321(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1961(a)), as amended by this 
     section; and
       (B) contains recommendations for ways to improve the 
     assistance provided under such section 321(a).
       (e) Effective Date.--
       (1) Small business.--The amendments made by subsection (a) 
     shall apply during the 4-year period beginning on the earlier 
     of the date on which guidelines are published by the 
     Administrator of the Small Business Administration under 
     subsection (c)(1) or 30 days after the date of enactment of 
     this Act, with respect to assistance under section 7(b)(4) of 
     the Small Business Act, as added by this section.
       (2) Agriculture.--The amendments made by subsection (b) 
     shall apply during the 4-year period beginning on the earlier 
     of the date on which guidelines are published by the 
     Secretary of Agriculture under subsection (c)(1) or 30 days 
     after the date of enactment of this Act, with respect to 
     assistance under section 321(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1961(a)), as amended by this 
     section.
                                 ______
                                 
  SA 826. Mr. McCAIN (for himself and Mr. Lieberman) proposed an 
amendment to the bill H.R. 6, to ensure jobs for our future with 
secure, affordable, and reliable energy; which was ordered to lie on 
the table; as follows:

       At the end of the bill, add the following:

           DIVISION      --CLIMATE STEWARDSHIP AND INNOVATION

     SEC. ------01. SHORT TITLE.

       This division may be cited as the ``Climate Stewardship and 
     Innovation Act of 2005''.

     SEC. ------02. TABLE OF CONTENTS.

       The table of contents for this division is as follows:

Sec. ------01. Short title.
Sec. ------02. Table of contents.
Sec. ------03. Definitions.

    Title I--Federal Climate Change Research and Related Activities

Sec. --0101. National Science Foundation fellowships.
Sec. --0102. Report on United States impact of Kyoto protocol.
Sec. --0103. Research grants.
Sec. --0104. Abrupt climate change research.
Sec. --0105. Impact on low-income populations research.
Sec. --0106. NIST greenhouse gas functions.
Sec. --0107. Development of new measurement technologies.
Sec. --0108. Enhanced environmental measurements and standards.
Sec. --0109. Technology development and diffusion.
Sec. --0110. Agricultural outreach program.

               Title II--National Greenhouse Gas Database

Sec. --0201. National greenhouse gas database and registry established.
Sec. --0202. Inventory of greenhouse gas emissions for covered 
              entities.
Sec. --0203. Greenhouse gas reduction reporting.
Sec. --0204. Measurement and verification.

           Title III--Market-driven Greenhouse Gas Reductions

     Subtitle A--Emission Reduction Requirements; Use of Tradeable 
                               Allowances

Sec. --0301. Covered entities must submit allowances for emissions.
Sec. --0302. Compliance.
Sec. --0303. Borrowing against future reductions.
Sec. --0304. Other uses of tradeable allowances.
Sec. --0305. Exemption of source categories.

    Subtitle B--Establishment and Allocation of Tradeable Allowances

Sec. --0331. Establishment of tradeable allowances.
Sec. --0332. Determination of tradeable allowance allocations.
Sec. --0333. Allocation of tradeable allowances.
Sec. --0334. Ensuring target adequacy.
Sec. --0335. Initial allocations for early participation and 
              accelerated participation.
Sec. --0336. Bonus for accelerated participation.

             Subtitle C--Climate Change Credit Corporation

Sec. --0351. Establishment.
Sec. --0352. Purposes and functions.

            Subtitle D--Sequestration Accounting; Penalties

Sec. --0371. Sequestration accounting.
Sec. --0372. Penalties.

                Title IV--Innovation and Competitiveness

Sec. --0401. Findings.

                 Subtitle A--Innovation Infrastructure

Sec. --0421. The Innovation Administration.
Sec. --0422. Technology transfer opportunities.
Sec. --0423. Government-sponsored technology investment program.
Sec. --0424. Federal technology innovation personnel incentives.
Sec. --0425. Interdisciplinary research and commercialization.
Sec. --0426. Climate innovation partnerships.
Sec. --0427. National medal of climate stewardship innovation.
Sec. --0428. Math and science teachers' enhancement program.
Sec. --0429. Patent study.
Sec. --0430. Lessons-learned program.

                Subtitle B--Specific Program Initiatives

Sec. --0451. Transportation.
Sec. --0452. Agricultural sequestration.
Sec. --0453. Geological storage of sequestered greenhouse gases.
Sec. --0454. Energy efficiency audits.
Sec. --0455. Adaptation technologies.
Sec. --0456. Advanced research and development for safety and 
              nonproliferation.

           Subtitle C--Climate Technology Deployment Program

                       part i--program authority

Sec. --0471. Government-industry partnerships for first-of-a-kind 
              engineering design.
Sec. --0472. Demonstration programs.

                           part ii--financing

Sec. --0481. Climate Technology Financing Board.
Sec. --0482. Responsibilities of the Secretary.
Sec. --0483. Limitations.
Sec. --0484. Source of funding for programs.

                         part iii--definitions

Sec. --0486. Definitions.

        Subtitle D--Reverse Auction for Technology Dissemination

Sec. --0491. Climate technology challenge program.

     SEC. ------03. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Baseline.--The term ``baseline'' means the historic 
     greenhouse gas emission levels of an entity, as adjusted 
     upward by the Administrator to reflect actual reductions that 
     are verified in accordance with--

[[Page S6961]]

       (A) regulations promulgated under section --0201(c)(1); and
       (B) relevant standards and methods developed under this 
     title.
       (3) Carbon dioxide equivalents.--The term ``carbon dioxide 
     equivalents'' means, for each greenhouse gas, the amount of 
     each such greenhouse gas that makes the same contribution to 
     global warming as one metric ton of carbon dioxide, as 
     determined by the Administrator.
       (4) Covered sectors.--The term ``covered sectors'' means 
     the electricity, transportation, industry, and commercial 
     sectors, as such terms are used in the Inventory.
       (5) Covered entity.--The term ``covered entity'' means an 
     entity (including a branch, department, agency, or 
     instrumentality of Federal, State, or local government) 
     that--
       (A) owns or controls a source of greenhouse gas emissions 
     in the electric power, industrial, or commercial sectors of 
     the United States economy (as defined in the Inventory), 
     refines or imports petroleum products for use in 
     transportation, or produces or imports hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride; and
       (B) emits, from any single facility owned by the entity, 
     over 10,000 metric tons of greenhouse gas per year, measured 
     in units of carbon dioxide equivalents, or produces or 
     imports--
       (i) petroleum products that, when combusted, will emit,
       (ii) hydrofluorocarbons, perfluorocarbons, or sulfur 
     hexafluoride that, when used, will emit, or
       (iii) other greenhouse gases that, when used, will emit,
     over 10,000 metric tons of greenhouse gas per year, measured 
     in units of carbon dioxide equivalents.
       (6) Database.--The term ``database'' means the national 
     greenhouse gas database established under section --0201.
       (7) Direct emissions.--The term ``direct emissions'' means 
     greenhouse gas emissions by an entity from a facility that is 
     owned or controlled by that entity.
       (8) Facility.--The term ``facility'' means a building, 
     structure, or installation located on any 1 or more 
     contiguous or adjacent properties of an entity in the United 
     States.
       (9) Greenhouse gas.--The term ``greenhouse gas'' means--
       (A) carbon dioxide;
       (B) methane;
       (C) nitrous oxide;
       (D) hydrofluorocarbons;
       (E) perfluorocarbons; and
       (F) sulfur hexafluoride.
       (10) Indirect emissions.--The term ``indirect emissions'' 
     means greenhouse gas emissions that are--
       (A) a result of the activities of an entity; but
       (B) emitted from a facility owned or controlled by another 
     entity.
       (11) Inventory.--The term ``Inventory'' means the Inventory 
     of U.S. Greenhouse Gas Emissions and Sinks, prepared in 
     compliance with the United Nations Framework Convention on 
     Climate Change Decision 3/CP.5).
       (12) Leakage.--The term ``leakage'' means--
       (A) an increase in greenhouse gas emissions by one facility 
     or entity caused by a reduction in greenhouse gas emissions 
     by another facility or entity; or
       (B) a decrease in sequestration that is caused by an 
     increase in sequestration at another location.
       (13) Permanence.--The term ``permanence'' means the extent 
     to which greenhouse gases that are sequestered will not later 
     be returned to the atmosphere.
       (14) Registry.--The term ``registry'' means the registry of 
     greenhouse gas emission reductions established under section 
     --0201(b)(2).
       (15) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (16) Sequestration.--
       (A) In general.--The term ``sequestration'' means the 
     capture, long-term separation, isolation, or removal of 
     greenhouse gases from the atmosphere.
       (B) Inclusions.--The term ``sequestration'' includes--
       (i) agricultural and conservation practices;
       (ii) reforestation;
       (iii) forest preservation; and
       (iv) any other appropriate method of capture, long-term 
     separation, isolation, or removal of greenhouse gases from 
     the atmosphere, as determined by the Administrator.
       (C) Exclusions.--The term ``sequestration'' does not 
     include--
       (i) any conversion of, or negative impact on, a native 
     ecosystem; or
       (ii) any introduction of non-native species.
       (17) Source category.--The term ``source category'' means a 
     process or activity that leads to direct emissions of 
     greenhouse gases, as listed in the Inventory.
       (18) Stationary source.--The term ``stationary source'' 
     means generally any source of greenhouse gases except those 
     emissions resulting directly from an engine for 
     transportation purposes.

    TITLE I--FEDERAL CLIMATE CHANGE RESEARCH AND RELATED ACTIVITIES

     SEC. 101. NATIONAL SCIENCE FOUNDATION FELLOWSHIPS.

       The Director of the National Science Foundation shall 
     establish a fellowship program for students pursuing graduate 
     studies in global climate change, including capability in 
     observation, analysis, modeling, paleoclimatology, 
     consequences, and adaptation.

     SEC. 102. REPORT ON UNITED STATES IMPACT OF KYOTO PROTOCOL.

       Within 6 months after the date of enactment of this Act, 
     the Secretary shall execute a contract with the National 
     Academy of Science for a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Science on the effects that the 
     entry into force of the Kyoto Protocol without United States 
     participation will have on--
       (1) United States industry and its ability to compete 
     globally;
       (2) international cooperation on scientific research and 
     development; and
       (3) United States participation in international 
     environmental climate change mitigation efforts and 
     technology deployment.

     SEC. 103. RESEARCH GRANTS.

       Section 105 of the Global Change Research Act of 1990 (15 
     U.S.C. 2935) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Research Grants.--
       ``(1) Committee to develop list of priority research 
     areas.--The Committee shall develop a list of priority areas 
     for research and development on climate change that are not 
     being addressed by Federal agencies.
       ``(2) Director of ostp to transmit list to nsf.--The 
     Director of the Office of Science and Technology Policy shall 
     transmit the list to the National Science Foundation.
       ``(3) Funding through nsf.--
       ``(A) Budget request.--The National Science Foundation 
     shall include, as part of the annual request for 
     appropriations for the Science and Technology Policy 
     Institute, a request for appropriations to fund research in 
     the priority areas on the list developed under paragraph (1).
       ``(B) Authorization.--For fiscal year 2005 and each fiscal 
     year thereafter, there are authorized to be appropriated to 
     the National Science Foundation not less than $25,000,000, to 
     be made available through the Science and Technology Policy 
     Institute, for research in those priority areas.''.

     SEC. 104. ABRUPT CLIMATE CHANGE RESEARCH.

       (a) In General.--The Secretary, through the National 
     Oceanic and Atmospheric Administration, shall carry out a 
     program of scientific research on potential abrupt climate 
     change designed--
       (1) to develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order 
     sufficiently to identify and describe past instances of 
     abrupt climate change;
       (2) to improve understanding of thresholds and 
     nonlinearities in geophysical systems related to the 
     mechanisms of abrupt climate change;
       (3) to incorporate these mechanisms into advanced 
     geophysical models of climate change; and
       (4) to test the output of these models against an improved 
     global array of records of past abrupt climate changes.
       (b) Abrupt Climate Change Defined.--In this section, the 
     term ``abrupt climate change'' means a change in climate that 
     occurs so rapidly or unexpectedly that human or natural 
     systems may have difficulty adapting to it.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for fiscal year 2005 
     $60,000,000 to carry out this section, such sum to remain 
     available until expended.

     SEC. 105. IMPACT ON LOW-INCOME POPULATIONS RESEARCH.

       (a) In General.--The Secretary shall conduct research on 
     the impact of climate change on low-income populations 
     everywhere in the world. The research shall--
       (1) include an assessment of the adverse impact of climate 
     change on developing countries and on low-income populations 
     in the United States;
       (2) identify appropriate climate change adaptation measures 
     and programs for developing countries and low-income 
     populations and assess the impact of those measures and 
     programs on low-income populations;
       (3) identify appropriate climate change mitigation 
     strategies and programs for developing countries and low-
     income populations and assess the impact of those strategies 
     and programs on developing countries and on low-income 
     populations in the United States; and
       (4) include an estimate of the costs of developing and 
     implementing those climate change adaptation and mitigation 
     programs.
       (b) Report.--Within 1 year after the date of enactment of 
     this Act, the Secretary shall transmit a report on the 
     research conducted under subsection (a) to the Senate 
     Committee on Commerce, Science, and Transportation, the 
     Senate Committee on Environment and Public Works, the House 
     of Representatives Committee on Science, and the House of 
     Representatives Committee on Energy and Commerce.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $2,000,000 to carry out 
     the research required by subsection (a).

     SEC. 106. NIST GREENHOUSE GAS FUNCTIONS.

       Section 2(c) of the National Institute of Standards and 
     Technology Act (15 U.S.C. 272(c)) is amended--
       (1) by striking ``and'' after the semicolon in paragraph 
     (21);
       (2) by redesignating paragraph (22) as paragraph (23); and
       (3) by inserting after paragraph (21) the following:

[[Page S6962]]

       ``(22) perform research to develop enhanced measurements, 
     calibrations, standards, and technologies which will 
     facilitate activities that reduce emissions of greenhouse 
     gases or increase sequestration of greenhouse gases, 
     including carbon dioxide, methane, nitrous oxide, ozone, 
     perfluorocarbons, hydrofluorocarbons, and sulfur 
     hexafluoride; and''.

     SEC. 107. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.

       To facilitate implementation of section --0204, the 
     Secretary shall initiate a program to develop, with technical 
     assistance from appropriate Federal agencies, innovative 
     standards and measurement technologies to calculate 
     greenhouse gas emissions or reductions for which no accurate 
     or reliable measurement technology exists. The program shall 
     include--
       (1) technologies (including remote sensing technologies) to 
     measure carbon changes and other greenhouse gas emissions and 
     reductions from agriculture, forestry, and other land use 
     practices; and
       (2) technologies to calculate non-carbon dioxide greenhouse 
     gas emissions from transportation.

     SEC. 108. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.

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

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

       ``(a) In General.--The Director shall establish within the 
     Institute a program to perform and support research on global 
     climate change standards and processes, with the goal of 
     providing scientific and technical knowledge applicable to 
     the reduction of greenhouse gases (as defined in section ----
     --03(8) of the Climate Stewardship and Innovation Act of 
     2005) and of facilitating implementation of section --0204 of 
     that Act.
       ``(b) Research Program.--
       ``(1) In general.--The Director is authorized to conduct, 
     directly or through contracts or grants, a global climate 
     change standards and processes research program.
       ``(2) Research projects.--The specific contents and 
     priorities of the research program shall be determined in 
     consultation with appropriate Federal agencies, including the 
     Environmental Protection Agency, the National Oceanic and 
     Atmospheric Administration, and the National Aeronautics and 
     Space Administration. The program generally shall include 
     basic and applied research--
       ``(A) to develop and provide the enhanced measurements, 
     calibrations, data, models, and reference material standards 
     which will enable the monitoring of greenhouse gases;
       ``(B) to assist in establishing a baseline reference point 
     for future trading in greenhouse gases and the measurement of 
     progress in emissions reduction;
       ``(C) that will be exchanged internationally as scientific 
     or technical information which has the stated purpose of 
     developing mutually recognized measurements, standards, and 
     procedures for reducing greenhouse gases; and
       ``(D) to assist in developing improved industrial processes 
     designed to reduce or eliminate greenhouse gases.
       ``(c) National Measurement Laboratories.--
       ``(1) In general.--In carrying out this section, the 
     Director shall utilize the collective skills of the National 
     Measurement Laboratories of the National Institute of 
     Standards and Technology to improve the accuracy of 
     measurements that will permit better understanding and 
     control of these industrial chemical processes and result in 
     the reduction or elimination of greenhouse gases.
       ``(2) Material, process, and building research.--The 
     National Measurement Laboratories shall conduct research 
     under this subsection that includes--
       ``(A) developing material and manufacturing processes which 
     are designed for energy efficiency and reduced greenhouse gas 
     emissions into the environment;
       ``(B) developing chemical processes to be used by industry 
     that, compared to similar processes in commercial use, result 
     in reduced emissions of greenhouse gases or increased 
     sequestration of greenhouse gases; and
       ``(C) enhancing building performance with a focus in 
     developing standards or tools which will help incorporate 
     low- or no-emission technologies into building designs.
       ``(3) Standards and tools.--The National Measurement 
     Laboratories shall develop standards and tools under this 
     subsection that include software to assist designers in 
     selecting alternate building materials, performance data on 
     materials, artificial intelligence-aided design procedures 
     for building subsystems and `smart buildings', and improved 
     test methods and rating procedures for evaluating the energy 
     performance of residential and commercial appliances and 
     products.
       ``(d) National Voluntary Laboratory Accreditation 
     Program.--The Director shall utilize the National Voluntary 
     Laboratory Accreditation Program under this section to 
     establish a program to include specific calibration or test 
     standards and related methods and protocols assembled to 
     satisfy the unique needs for accreditation in measuring the 
     production of greenhouse gases. In carrying out this 
     subsection the Director may cooperate with other departments 
     and agencies of the Federal Government, State and local 
     governments, and private organizations.''.

     SEC. 109. TECHNOLOGY DEVELOPMENT AND DIFFUSION.

       The Director of the National Institute of Standards and 
     Technology, through the Manufacturing Extension Partnership 
     Program, may develop a program to promote the use, by the 
     more than 380,000 small manufacturers, of technologies and 
     techniques that result in reduced emissions of greenhouse 
     gases or increased sequestration of greenhouse gases.

     SEC. 110. AGRICULTURAL OUTREACH PROGRAM.

       (a) In General.--The Secretary of Agriculture, acting 
     through the Global Change Program Office and in consultation 
     with the heads of other appropriate departments and agencies, 
     shall establish the Climate Change Education and Outreach 
     Initiative Program to educate, and reach out to, agricultural 
     organizations and individual farmers on global climate 
     change.
       (b) Program Components.--The program--
       (1) shall be designed to ensure that agricultural 
     organizations and individual farmers receive detailed 
     information about--
       (A) the potential impact of climate change on their 
     operations and well-being;
       (B) market-driven economic opportunities that may come from 
     storing carbon in soils and vegetation, including emerging 
     private sector markets for carbon storage; and
       (C) techniques for measuring, monitoring, verifying, and 
     inventorying such carbon capture efforts;
       (2) may incorporate existing efforts in any area of 
     activity referenced in paragraph (1) or in related areas of 
     activity;
       (3) shall provide--
       (A) outreach materials to interested parties;
       (B) workshops; and
       (C) technical assistance; and
       (4) may include the creation and development of regional 
     centers on climate change or coordination with existing 
     centers (including such centers within NRCS and the 
     Cooperative State Research Education and Extension Service).

               TITLE II--NATIONAL GREENHOUSE GAS DATABASE

     SEC. 201. NATIONAL GREENHOUSE GAS DATABASE AND REGISTRY 
                   ESTABLISHED.

       (a) Establishment.--As soon as practicable after the date 
     of enactment of this Act, the Administrator, in coordination 
     with the Secretary, the Secretary of Energy, the Secretary of 
     Agriculture, and private sector and nongovernmental 
     organizations, shall establish, operate, and maintain a 
     database, to be known as the ``National Greenhouse Gas 
     Database'', to collect, verify, and analyze information on 
     greenhouse gas emissions by entities.
       (b) National Greenhouse Gas Database Components.--The 
     database shall consist of--
       (1) an inventory of greenhouse gas emissions; and
       (2) a registry of greenhouse gas emission reductions and 
     increases in greenhouse gas sequestrations.
       (c) Comprehensive System.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations to implement a comprehensive system for 
     greenhouse gas emissions reporting, inventorying, and 
     reductions registration.
       (2) Requirements.--The Administrator shall ensure, to the 
     maximum extent practicable, that--
       (A) the comprehensive system described in paragraph (1) is 
     designed to--
       (i) maximize completeness, transparency, and accuracy of 
     information reported; and
       (ii) minimize costs incurred by entities in measuring and 
     reporting greenhouse gas emissions; and
       (B) the regulations promulgated under paragraph (1) 
     establish procedures and protocols necessary--
       (i) to prevent the double-counting of greenhouse gas 
     emissions or emission reductions reported by more than 1 
     reporting entity;
       (ii) to provide for corrections to errors in data submitted 
     to the database;
       (iii) to provide for adjustment to data by reporting 
     entities that have had a significant organizational change 
     (including mergers, acquisitions, and divestiture), in order 
     to maintain comparability among data in the database over 
     time;
       (iv) to provide for adjustments to reflect new technologies 
     or methods for measuring or calculating greenhouse gas 
     emissions;
       (v) to account for changes in registration of ownership of 
     emission reductions resulting from a voluntary private 
     transaction between reporting entities; and
       (vi) to clarify the responsibility for reporting in the 
     case of any facility owned or controlled by more than 1 
     entity.
       (3) Serial numbers.--Through regulations promulgated under 
     paragraph (1), the Administrator shall develop and implement 
     a system that provides--
       (A) for the verification of submitted emissions reductions 
     registered under section --0204;
       (B) for the provision of unique serial numbers to identify 
     the registered emission reductions made by an entity relative 
     to the baseline of the entity;
       (C) for the tracking of the registered reductions 
     associated with the serial numbers; and
       (D) for such action as may be necessary to prevent 
     counterfeiting of the registered reductions.

[[Page S6963]]

     SEC. 202. INVENTORY OF GREENHOUSE GAS EMISSIONS FOR COVERED 
                   ENTITIES.

       (a) In General.--Not later than July 1st of each calendar 
     year after 2008, each covered entity shall submit to the 
     Administrator a report that states, for the preceding 
     calendar year, the entity-wide greenhouse gas emissions (as 
     reported at the facility level), including--
       (1) the total quantity of direct greenhouse gas emissions 
     from stationary sources, expressed in units of carbon dioxide 
     equivalents, except those reported under paragraph (3);
       (2) the amount of petroleum products sold or imported by 
     the entity and the amount of greenhouse gases, expressed in 
     units of carbon dioxide equivalents, that would be emitted 
     when these products are used for transportation in the United 
     States, as determined by the Administrator under section --
     0301(b);
       (3) the amount of hydrofluorocarbons, perfluorocarbons, or 
     sulfur hexafluoride, expressed in units of carbon dioxide 
     equivalents, that are sold or imported by the entity and will 
     ultimately be emitted in the United States, as determined by 
     the Administrator under section --0301(d); and
       (4) such other categories of emissions as the Administrator 
     determines in the regulations promulgated under section --
     0201(c)(1) may be practicable and useful for the purposes of 
     this division, such as--
       (A) indirect emissions from imported electricity, heat, and 
     steam;
       (B) process and fugitive emissions; and
       (C) production or importation of greenhouse gases.
       (b) Collection and Analysis of Data.--The Administrator 
     shall collect and analyze information reported under 
     subsection (a) for use under title III.

     SEC. 203. GREENHOUSE GAS REDUCTION REPORTING.

       (a) In General.--Subject to the requirements described in 
     subsection (b)--
       (1) a covered entity may register greenhouse gas emission 
     reductions achieved after 1990 and before 2010 under this 
     section; and
       (2) an entity that is not a covered entity may register 
     greenhouse gas emission reductions achieved at any time since 
     1990 under this section.
       (b) Requirements.--
       (1) In general.--The requirements referred to in subsection 
     (a) are that an entity (other than an entity described in 
     paragraph (2)) shall--
       (A) establish a baseline; and
       (B) submit the report described in subsection (c)(1).
       (2) Requirements applicable to entities entering into 
     certain agreements.--An entity that enters into an agreement 
     with a participant in the registry for the purpose of a 
     carbon sequestration project shall not be required to comply 
     with the requirements specified in paragraph (1) unless that 
     entity is required to comply with the requirements by reason 
     of an activity other than the agreement.
       (c) Reports.--
       (1) Required report.--Not later than July 1st of the each 
     calendar year beginning more than 2 years after the date of 
     enactment of this Act, but subject to paragraph (3), an 
     entity described in subsection (a) shall submit to the 
     Administrator a report that states, for the preceding 
     calendar year, the entity-wide greenhouse gas emissions (as 
     reported at the facility level), including--
       (A) the total quantity of direct greenhouse gas emissions 
     from stationary sources, expressed in units of carbon dioxide 
     equivalents;
       (B) the amount of petroleum products sold or imported by 
     the entity and the amount of greenhouse gases, expressed in 
     units of carbon dioxide equivalents, that would be emitted 
     when these products are used for transportation in the United 
     States, as determined by the Administrator under section --
     0301(b);
       (C) the amount of hydrofluorocarbons, perfluorocarbons, or 
     sulfur hexafluoride, expressed in units of carbon dioxide 
     equivalents, that are sold or imported by the entity and will 
     ultimately be emitted in the United States, as determined by 
     the Administrator under section --0301(d); and
       (D) such other categories of emissions as the Administrator 
     determines in the regulations promulgated under section --
     0201(c)(1) may be practicable and useful for the purposes of 
     this division, such as--
       (i) indirect emissions from imported electricity, heat, and 
     steam;
       (ii) process and fugitive emissions; and
       (iii) production or importation of greenhouse gases.
       (2) Voluntary reporting.--An entity described in subsection 
     (a) may (along with establishing a baseline and reporting 
     emissions under this section)--
       (A) submit a report described in paragraph (1) before the 
     date specified in that paragraph for the purposes of 
     achieving and commoditizing greenhouse gas reductions through 
     use of the registry and for other purposes; and
       (B) submit to the Administrator, for inclusion in the 
     registry, information that has been verified in accordance 
     with regulations promulgated under section --0201(c)(1) and 
     that relates to--
       (i) any activity that resulted in the net reduction of the 
     greenhouse gas emissions of the entity or a net increase in 
     sequestration by the entity that were carried out during or 
     after 1990 and before the establishment of the database, 
     verified in accordance with regulations promulgated under 
     section --0201(c)(1), and submitted to the Administrator 
     before the date that is 4 years after the date of enactment 
     of this Act; and
       (ii) with respect to the calendar year preceding the 
     calendar year in which the information is submitted, any 
     project or activity that resulted in the net reduction of the 
     greenhouse gas emissions of the entity or a net increase in 
     net sequestration by the entity.
       (3) Provision of verification information by reporting 
     entities.--Each entity that submits a report under this 
     subsection shall provide information sufficient for the 
     Administrator to verify, in accordance with measurement and 
     verification methods and standards developed under section --
     0204, that the greenhouse gas report of the reporting 
     entity--
       (A) has been accurately reported; and
       (B) in the case of each voluntary report under paragraph 
     (2), represents--
       (i) actual reductions in direct greenhouse gas emissions--

       (I) relative to historic emission levels of the entity; and
       (II) after accounting for any increases in indirect 
     emissions described in paragraph (1)(C)(i); or

       (ii) actual increases in net sequestration.
       (4) Failure to submit report.--An entity that participates 
     or has participated in the registry and that fails to submit 
     a report required under this subsection shall be prohibited 
     from using, or allowing another entity to use, its registered 
     emissions reductions or increases in sequestration to satisfy 
     the requirements of section --0301.
       (5) Independent third-party verification.--To meet the 
     requirements of this section and section --0203, an entity 
     that is required to submit a report under this section may--
       (A) obtain independent third-party verification; and
       (B) present the results of the third-party verification to 
     the Administrator.
       (6) Availability of data.--
       (A) In general.--The Administrator shall ensure that 
     information in the database is--
       (i) published; and
       (ii) accessible to the public, including in electronic 
     format on the Internet.
       (B) Exception.--Subparagraph (A) shall not apply in any 
     case in which the Administrator determines that publishing or 
     otherwise making available information described in that 
     subparagraph poses a risk to national security or discloses 
     confidential business information that can not be derived 
     from information that is otherwise publicly available and 
     that would cause competitive harm if published.
       (7) Data infrastructure.--The Administrator shall ensure, 
     to the maximum extent practicable, that the database uses, 
     and is integrated with, Federal, State, and regional 
     greenhouse gas data collection and reporting systems in 
     effect as of the date of enactment of this Act.
       (8) Additional issues to be considered.--In promulgating 
     the regulations under section --0201(c)(1) and implementing 
     the database, the Administrator shall take into consideration 
     a broad range of issues involved in establishing an effective 
     database, including--
       (A) the data and information systems and measures necessary 
     to identify, track, and verify greenhouse gas emissions in a 
     manner that will encourage private sector trading and 
     exchanges;
       (B) the greenhouse gas reduction and sequestration 
     measurement and estimation methods and standards applied in 
     other countries, as applicable or relevant;
       (C) the extent to which available fossil fuels, greenhouse 
     gas emissions, and greenhouse gas production and importation 
     data are adequate to implement the database; and
       (D) the differences in, and potential uniqueness of, the 
     facilities, operations, and business and other relevant 
     practices of persons and entities in the private and public 
     sectors that may be expected to participate in the database.
       (d) Annual Report.--The Administrator shall publish an 
     annual report that--
       (1) describes the total greenhouse gas emissions and 
     emission reductions reported to the database during the year 
     covered by the report;
       (2) provides entity-by-entity and sector-by-sector analyses 
     of the emissions and emission reductions reported;
       (3) describes the atmospheric concentrations of greenhouse 
     gases;
       (4) provides a comparison of current and past atmospheric 
     concentrations of greenhouse gases; and
       (5) describes the activity during the year covered by the 
     period in the trading of greenhouse gas emission allowances.

     SEC. 204. MEASUREMENT AND VERIFICATION.

       (a) Standards.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish by rule, 
     in coordination with the Administrator, the Secretary of 
     Energy, and the Secretary of Agriculture, comprehensive 
     measurement and verification methods and standards to ensure 
     a consistent and technically accurate record of greenhouse 
     gas emissions, emission reductions, sequestration, and 
     atmospheric concentrations for use in the registry.
       (2) Requirements.--The methods and standards established 
     under paragraph (1) shall include--

[[Page S6964]]

       (A) a requirement that a covered entity use a continuous 
     emissions monitoring system, or another system of measuring 
     or estimating emissions that is determined by the Secretary 
     to provide information with precision, reliability, 
     accessibility, and timeliness similar to that provided by a 
     continuous emissions monitoring system where technologically 
     feasible;
       (B) establishment of standardized measurement and 
     verification practices for reports made by all entities 
     participating in the registry, taking into account--
       (i) protocols and standards in use by entities requiring or 
     desiring to participate in the registry as of the date of 
     development of the methods and standards under paragraph (1);
       (ii) boundary issues, such as leakage;
       (iii) avoidance of double counting of greenhouse gas 
     emissions and emission reductions;
       (iv) protocols to prevent a covered entity from avoiding 
     the requirements of this division by reorganization into 
     multiple entities that are under common control; and
       (v) such other factors as the Secretary, in consultation 
     with the Administrator, determines to be appropriate;
       (C) establishment of methods of--
       (i) estimating greenhouse gas emissions, for those cases in 
     which the Secretary determines that methods of monitoring, 
     measuring or estimating such emissions with precision, 
     reliability, accessibility, and timeliness similar to that 
     provided by a continuous emissions monitoring system are not 
     technologically feasible at present; and
       (ii) reporting the accuracy of such estimations;
       (D) establishment of measurement and verification standards 
     applicable to actions taken to reduce, avoid, or sequester 
     greenhouse gas emissions;
       (E) in coordination with the Secretary of Agriculture, 
     standards to measure the results of the use of carbon 
     sequestration and carbon recapture technologies, including--
       (i) soil carbon sequestration practices; and
       (ii) forest preservation and reforestation activities that 
     adequately address the issues of permanence, leakage, and 
     verification;
       (E) establishment of such other measurement and 
     verification standards as the Secretary, in consultation with 
     the Secretary of Agriculture, the Administrator, and the 
     Secretary of Energy, determines to be appropriate;
       (F) establishment of standards for obtaining the 
     Secretary's approval of the suitability of geological storage 
     sites that include evaluation of both the geology of the site 
     and the entity's capacity to manage the site; and
       (G) establishment of other features that, as determined by 
     the Secretary, will allow entities to adequately establish a 
     fair and reliable measurement and reporting system.
       (b) Review and Revision.--The Secretary shall periodically 
     review, and revise as necessary, the methods and standards 
     developed under subsection (a).
       (c) Public Participation.--The Secretary shall--
       (1) make available to the public for comment, in draft form 
     and for a period of at least 90 days, the methods and 
     standards developed under subsection (a); and
       (2) after the 90-day period referred to in paragraph (1), 
     in coordination with the Secretary of Energy, the Secretary 
     of Agriculture, and the Administrator, adopt the methods and 
     standards developed under subsection (a) for use in 
     implementing the database.
       (d) Experts and Consultants.--
       (1) In general.--The Secretary may obtain the services of 
     experts and consultants in the private and nonprofit sectors 
     in accordance with section 3109 of title 5, United States 
     Code, in the areas of greenhouse gas measurement, 
     certification, and emission trading.
       (2) Available arrangements.--In obtaining any service 
     described in paragraph (1), the Secretary may use any 
     available grant, contract, cooperative agreement, or other 
     arrangement authorized by law.

           TITLE III--MARKET-DRIVEN GREENHOUSE GAS REDUCTIONS

     Subtitle A--Emission Reduction Requirements; Use of Tradeable 
                               Allowances

     SEC. 301. COVERED ENTITIES MUST SUBMIT ALLOWANCES FOR 
                   EMISSIONS.

       (a) In General.--
       (1) Submission of allowances.--Except as provided in 
     paragraph (2), beginning with calendar year 2010--
       (A) each covered entity in the electric generation, 
     industrial, and commercial sectors shall submit to the 
     Administrator one tradeable allowance for every metric ton of 
     greenhouse gases, measured in units of carbon dioxide 
     equivalents, that it emits from stationary sources, except 
     those described in subparagraph (B);
       (B) each producer or importer of hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride that is a covered 
     entity shall submit to the Administrator one tradeable 
     allowance for every metric ton of hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride, measured in units 
     of carbon dioxide equivalents; that it produces or imports 
     and that will ultimately be emitted in the United States, as 
     determined by the Administrator under subsection (d) and
       (C) each petroleum refiner or importer that is a covered 
     entity shall submit one tradeable allowance for every unit of 
     petroleum product it sells that will produce one metric ton 
     of greenhouse gases, measured in units of carbon dioxide 
     equivalents, as determined by the Administrator under 
     subsection (b), when used for transportation.
       (2) Tennessee Valley Authority.--Paragraph (1) shall apply 
     to the Tennessee Valley Authority beginning with calendar 
     year 2016.
       (b) Determination of Transportation Sector Amount.--For the 
     transportation sector, the Administrator shall determine the 
     amount of greenhouse gases, measured in units of carbon 
     dioxide equivalents, that will be emitted when petroleum 
     products are used for transportation.
       (c) Exception for Certain Deposited Emissions.--
     Notwithstanding subsection (a), a covered entity is not 
     required to submit a tradeable allowance for any amount of 
     greenhouse gas that would otherwise have been emitted from a 
     facility under the ownership or control of that entity if--
       (1) the emission is deposited in a geological storage 
     facility approved by the Administrator under section --
     0204(a)(2)(F); and
       (2) the entity agrees to submit tradeable allowances for 
     any portion of the deposited emission that is subsequently 
     emitted from that facility.
       (d) Determination of Hydroflurocarbon, Perfluorocarbon, and 
     Sulfur Hexafluoride Amount.--The Administrator shall 
     determine the amounts of hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride, measured in units 
     of carbon dioxide equivalents, that will be deemed to be 
     emitted for purposes of this division.

     SEC. 302. COMPLIANCE.

       (a) In General.--
       (1) Source of tradeable allowances used.--A covered entity 
     may use a tradeable allowance to meet the requirements of 
     this section without regard to whether the tradeable 
     allowance was allocated to it under subtitle B or acquired 
     from another entity or the Climate Change Credit Corporation 
     established under section --0351.
       (2) Verification by Administrator.--At various times during 
     each year, the Administrator shall determine whether each 
     covered entity has met the requirements of this section. In 
     making that determination, the Administrator shall--
       (A) take into account the tradeable allowances submitted by 
     the covered entity to the Administrator; and
       (B) retire the serial number assigned to each such 
     tradeable allowance.
       (b) Alternative Means of Compliance.--For the years 2010 
     and after, a covered entity may satisfy up to 15 percent of 
     its total allowance submission requirement under this section 
     by--
       (1) submitting tradeable allowances from another nation's 
     market in greenhouse gas emissions if--
       (A) the Secretary determines that the other nation's system 
     for trading in greenhouse gas emissions is complete, 
     accurate, and transparent and reviews that determination at 
     least once every 5 years;
       (B) the other nation has adopted enforceable limits on its 
     greenhouse gas emissions which the tradeable allowances were 
     issued to implement; and
       (C) the covered entity certifies that the tradeable 
     allowance has been retired unused in the other nation's 
     market;
       (2) submitting a registered net increase in sequestration, 
     as registered in the database, adjusted, if necessary, to 
     comply with the accounting standards and methods established 
     under section --0372;
       (3) submitting a greenhouse gas emissions reduction (other 
     than a registered net increase in sequestration) that was 
     registered in the database by a person that is not a covered 
     entity; or
       (4) submitting credits obtained from the Administrator 
     under section --0303.
       (c) Dedicated Program for Sequestration in Agricultural 
     Soils.--If a covered entity chooses to satisfy 15 percent of 
     its total allowance submission requirements under the 
     provisions of subsection (b), it shall satisfy at least 01.5 
     percent of its total allowance submission requirement by 
     submitting registered net increases in sequestration in 
     agricultural soils, as registered in the database, adjusted, 
     if necessary, to comply with the accounting standards and 
     methods established under section --0371.

     SEC. 303. BORROWING AGAINST FUTURE REDUCTIONS.

       (a) In General.--The Administrator shall establish a 
     program under which a covered entity may--
       (1) receive a credit in the current calendar year for 
     anticipated reductions in emissions in a future calendar 
     year; and
       (2) use the credit in lieu of a tradeable allowance to meet 
     the requirements of this division for the current calendar 
     year, subject to the limitation imposed by section --0302(b).
       (b) Determination of Tradeable Allowance Credits.--The 
     Administrator may make credits available under subsection (a) 
     only for anticipated reductions in emissions that--
       (1) are attributable to the realization of capital 
     investments in equipment, the construction, reconstruction, 
     or acquisition of facilities, or the deployment of new 
     technologies--
       (A) for which the covered entity has executed a binding 
     contract and secured, or applied for, all necessary permits 
     and operating or implementation authority;
       (B) that will not become operational within the current 
     calendar year; and
       (C) that will become operational and begin to reduce 
     emissions from the covered entity within 5 years after the 
     year in which the credit is used; and

[[Page S6965]]

       (2) will be realized within 5 years after the year in which 
     the credit is used.
       (c) Carrying Cost.--If a covered entity uses a credit under 
     this section to meet the requirements of this division for a 
     calendar year (referred to as the use year), the tradeable 
     allowance requirement for the year from which the credit was 
     taken (referred to as the source year) shall be increased by 
     an amount equal to--
       (1) 10 percent for each credit borrowed from the source 
     year; multiplied by
       (2) the number of years beginning after the use year and 
     before the source year.
       (d) Maximum Borrowing Period.--A credit from a year 
     beginning more than 5 years after the current year may not be 
     used to meet the requirements of this division for the 
     current year.
       (e) Failure to Achieve Reductions Generating Credit.--If a 
     covered entity that uses a credit under this section fails to 
     achieve the anticipated reduction for which the credit was 
     granted for the year from which the credit was taken, then--
       (1) the covered entity's requirements under this Act for 
     that year shall be increased by the amount of the credit, 
     plus the amount determined under subsection (c);
       (2) any tradeable allowances submitted by the covered 
     entity for that year shall be counted first against the 
     increase in those requirements; and
       (3) the covered entity may not use credits under this 
     section to meet the increased requirements.

     SEC. 304. OTHER USES OF TRADEABLE ALLOWANCES.

       (a) In General.--Tradeable allowances may be sold, 
     exchanged, purchased, retired, or used as provided in this 
     section.
       (b) Intersector Trading.--Covered entities may purchase or 
     otherwise acquire tradeable allowances from other covered 
     sectors to satisfy the requirements of section --0301.
       (c) Climate Change Credit Corporation.--The Climate Change 
     Credit Corporation established under section --0351 may sell 
     tradeable allowances allocated to it under section --
     0332(a)(2) to any covered entity or to any investor, broker, 
     or dealer in such tradeable allowances. The Climate Change 
     Credit Corporation shall use all proceeds from such sales in 
     accordance with the provisions of section --0352.
       (d) Banking of Tradeable Allowances.--Notwithstanding the 
     requirements of section --0301, a covered entity that has 
     more than a sufficient amount of tradeable allowances to 
     satisfy the requirements of section --0301, may refrain from 
     submitting a tradeable allowance to satisfy the requirements 
     in order to sell, exchange, or use the tradeable allowance in 
     the future.

     SEC. 305. EXEMPTION OF SOURCE CATEGORIES.

       (a) In General.--The Administrator may grant an exemption 
     from the requirements of this division to a source category 
     if the Administrator determines, after public notice and 
     comment, that it is not feasible to measure or estimate 
     emissions from that source category, until such time as 
     measurement or estimation becomes feasible.
       (b) Reduction of Limitations.--If the Administrator exempts 
     a source category under subsection (a), the Administrator 
     shall also reduce the total tradeable allowances under 
     section --0331(a)(1) by the amount of greenhouse gas 
     emissions that the exempted source category emitted in 
     calendar year 2000, as identified in the 2000 Inventory.
       (c) Limitation on Exemption.--The Administrator may not 
     grant an exemption under subsection (a) to carbon dioxide 
     produced from fossil fuel.

    Subtitle B--Establishment and Allocation of Tradeable Allowances

     SEC. 331. ESTABLISHMENT OF TRADEABLE ALLOWANCES.

       (a) In General.--The Administrator shall promulgate 
     regulations to establish tradeable allowances, denominated in 
     units of carbon dioxide equivalents, for calendar years 
     beginning after 2009, equal to--
       (1) 5896 million metric tons, measured in units of carbon 
     dioxide equivalents, reduced by
       (2) the amount of emissions of greenhouse gases in calendar 
     year 2000 from non-covered entities.
       (b) Serial Numbers.--The Administrator shall assign a 
     unique serial number to each tradeable allowance established 
     under subsection (a), and shall take such action as may be 
     necessary to prevent counterfeiting of tradeable allowances.
       (c) Nature of Tradeable Allowances.--A tradeable allowance 
     is not a property right, and nothing in this title or any 
     other provision of law limits the authority of the United 
     States to terminate or limit a tradeable allowance.
       (d) Non-covered entity.--
       (1) In general.--In this section the term ``non-covered 
     entity'' means an entity that--
       (A) owns or controls a source of greenhouse gas emissions 
     in the electric power, industrial, or commercial sectors of 
     the United States economy (as defined in the Inventory), 
     refines or imports petroleum products for use in 
     transportation, or produces or imports hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride; and
       (B) is not a covered entity.
       (2) Exception.--Notwithstanding paragraph (1), an entity 
     that is a covered entity for any calendar year beginning 
     after 2009 shall not be considered to be a non-covered entity 
     for purposes of subsection (a) only because it emitted, or 
     its products would have emitted, 10,000 metric tons or less 
     of greenhouse gas, measured in units of carbon dioxide 
     equivalents, in the year 2000.

     SEC. 332. DETERMINATION OF TRADEABLE ALLOWANCE ALLOCATIONS.

       (a) In General.--The Secretary shall determine--
       (1) the amount of tradeable allowances to be allocated to 
     each covered sector of that sector's allotments; and
       (2) the amount of tradeable allowances to be allocated to 
     the Climate Change Credit Corporation established under 
     section --0351.
       (b) Allocation Factors.--In making the determination 
     required by subsection (a), the Secretary shall consider--
       (1) the distributive effect of the allocations on household 
     income and net worth of individuals;
       (2) the impact of the allocations on corporate income, 
     taxes, and asset value;
       (3) the impact of the allocations on income levels of 
     consumers and on their energy consumption;
       (4) the effects of the allocations in terms of economic 
     efficiency;
       (5) the ability of covered entities to pass through 
     compliance costs to their customers;
       (6) the degree to which the amount of allocations to the 
     covered sectors should decrease over time; and
       (7) the need to maintain the international competitiveness 
     of United States manufacturing and avoid the additional loss 
     of United States manufacturing jobs.
       (c) Allocation Recommendations and Implementation.--Before 
     allocating or providing tradeable allowances under subsection 
     (a) and within 24 months after the date of enactment of this 
     Act, the Secretary shall submit the determinations under 
     subsection (a) to the Senate Committee on Commerce, Science, 
     and Transportation, the Senate Committee on Environment and 
     Public Works, the House of Representatives Committee on 
     Science, and the House of Representatives Committee on Energy 
     and Commerce. The Secretary's determinations under paragraph 
     (1), including the allocations and provision of tradeable 
     allowances pursuant to that determination, are deemed to be a 
     major rule (as defined in section 804(2) of title 5, United 
     States Code), and subject to the provisions of chapter 8 of 
     that title.

     SEC. 333. ALLOCATION OF TRADEABLE ALLOWANCES.

       (a) In General.--Beginning with calendar year 2010 and 
     after taking into account any initial allocations under 
     section --0335, the Administrator shall--
       (1) allocate to each covered sector that sector's 
     allotments determined by the Administrator under section --
     0332 (adjusted for any such initial allocations and the 
     allocation to the Climate Change Credit Corporation 
     established under section --0351); and
       (2) allocate to the Climate Change Credit Corporation 
     established under section --0351 the tradeable allowances 
     allocable to that Corporation.
       (b) Intrasectorial Allotments.--The Administrator shall, by 
     regulation, establish a process for the allocation of 
     tradeable allowances under this section, without cost to 
     covered entities, that will--
       (1) encourage investments that increase the efficiency of 
     the processes that produce greenhouse gas emissions;
       (2) minimize the costs to the government of allocating the 
     tradeable allowances;
       (3) not penalize a covered entity for emissions reductions 
     made before 2010 and registered with the database; and
       (4) provide sufficient allocation for new entrants into the 
     sector.
       (c) Point Source Allocation.--The Administrator shall 
     allocate the tradeable allowances for the electricity 
     generation, industrial, and commercial sectors to the 
     entities owning or controlling the point sources of 
     greenhouse gas emissions within that sector.
       (d) Hydrofluorocarbons, perfluorocarbons, and sulfur 
     hexafluoride.--The Administrator shall allocate the tradeable 
     allowances for producers or importers of hydrofluorocarbons, 
     perfluorocarbons, or sulfur hexafluoride to such producers or 
     importers.
       (e) Special Rule for Allocation within the Transportation 
     Sector.--The Administrator shall allocate the tradeable 
     allowances for the transportation sector to petroleum 
     refiners or importers that produce or import petroleum 
     products that will be used as fuel for transportation.
       (f) Allocations to Rural Electric Cooperatives.--For each 
     electric generating unit that is owned or operated by a rural 
     electric cooperative, the Administrator shall allocate each 
     year, at no cost, allowances in an amount equal to the 
     greenhouse gas emissions of each such unit in 2000, plus an 
     amount equal to the average emissions growth expected for all 
     such units. The allocations shall be offset from the 
     allowances allocated to the Climate Change Credit 
     Corporation.
       (g) Early Auction for Technology Deployment and 
     Dissemination.--
       (1) In general.--Within 1 year after the date of enactment 
     of this Act, the Administrator, in consultation with the 
     Secretary of Energy and the Secretary of Commerce, shall 
     allocate tradeable allowances by the Climate Change Credit 
     Corporation for auction before 2010. The Climate Change 
     Credit Corporation shall use the proceeds of the

[[Page S6966]]

     auction, together with any funds received as reimbursements 
     under subtitle C of title IV of this division, to support the 
     programs established by that subtitle until the secretary of 
     Energy and the Corporation jointly determine that the 
     purposes of those programs have been accomplished. The 
     Corporation shall also use the proceeds of the auction to 
     support the programs established by subtitle D of title IV of 
     this division until 2010.
       (2) Determination of allocation.--In determining the amount 
     of tradeable allowances to be allocated to the Climate Change 
     Credit Corporation under this subsection, the Administrator 
     shall consider--
       (A) the expected market value of tradeable allowances for 
     auction;
       (B) the annual funding required for the programs 
     established by subtitle C of title IV;
       (C) the repayment provisions of those programs; and
       (D) the allocation factors in section --0332(b).
       (3) Limitation.--In allocating tradeable allowances under 
     paragraph (1) the Administrator shall take into account the 
     purposes of section --0331 and the impact, if any, the 
     allocation under paragraph (1) may have on achieving those 
     purposes.
       (h) Allocation to Covered Entities in States Adopting 
     Mandatory Greenhouse Gas Emissions Reduction Programs.--For a 
     covered entity operating in any State that has adopted a 
     legally binding and enforceable program to achieve and 
     maintain reductions that are consistent with, or more 
     stringent than, reductions mandated by this Act, and which 
     requirements are effective prior to 2010, the Administrator 
     shall consider such binding state actions in making the final 
     determination of allocation to such covered entities.

     SEC. 334. ENSURING TARGET ADEQUACY.

       (a) In General.--Beginning 2 years after the date of 
     enactment of this Act, the Under Secretary of Commerce for 
     Oceans and Atmosphere shall review the allowances established 
     by section --0331 no less frequently than biennially--
       (1) to re-evaluate the levels established by that 
     subsection, after taking into account the best available 
     science and the most currently available data, and
       (2) to re-evaluate the environmental and public health 
     impacts of specific concentration levels of greenhouse gases,

     to determine whether the allowances established by subsection 
     (a) continue to be consistent with the objective of the 
     United Nations' Framework Convention on Climate Change of 
     stabilizing levels of greenhouse gas emissions at a level 
     that will prevent dangerous anthropogenic interference with 
     the climate system.
       (b) Review of 2010 Levels.--The Under Secretary shall 
     specifically review in 2008 the level established under 
     section --0331(a)(1), and transmit a report on his reviews, 
     together with any recommendations, including legislative 
     recommendations, for modification of the levels, to the 
     Senate Committee on Commerce, Science, and Transportation, 
     the Senate Committee on Environment and Public Works, the 
     House of Representatives Committee on Science, and the House 
     of Representatives Committee on Energy and Commerce.

     SEC. 335. INITIAL ALLOCATIONS FOR EARLY PARTICIPATION AND 
                   ACCELERATED PARTICIPATION.

       (a) Before making any allocations under section --0333, the 
     Administrator shall allocate--
       (1) to any covered entity an amount of tradeable allowances 
     equivalent to the amount of greenhouse gas emissions 
     reductions registered by that covered entity in the national 
     greenhouse gas database if--
       (A) the covered entity has requested to use the registered 
     reduction in the year of allocation;
       (B) the reduction was registered prior to 2010; and
       (C) the Administrator retires the unique serial number 
     assigned to the reduction under section --0201(c)(3); and
       (2) to any covered entity that has entered into an 
     accelerated participation agreement under section --0336, 
     such tradeable allowances as the Administrator has determined 
     to be appropriate under that section.
       (b) Any covered entity that is subject to a State mandatory 
     greenhouse gas emissions reduction program that meets the 
     requirements of subsection (h) of section --0333 shall be 
     eligible for the allocation of allowances under this section 
     and section --0336 if the requirements of the State mandatory 
     greenhouse gas emission reduction program are consistent 
     with, or more stringent than, the emission targets 
     established by this Act.

     SEC. 336. BONUS FOR ACCELERATED PARTICIPATION.

       (a) In General.--If a covered entity executes an agreement 
     with the Administrator under which it agrees to reduce its 
     level of greenhouse gas emissions to a level no greater than 
     the level of its greenhouse gas emissions for calendar year 
     1990 by the year 2010, then, for the 6-year period beginning 
     with calendar year 2010, the Administrator shall--
       (1) provide additional tradeable allowances to that entity 
     when allocating allowances under section --0334 in order to 
     recognize the additional emissions reductions that will be 
     required of the covered entity;
       (2) allow that entity to satisfy 20 percent of its 
     requirements under section --0301 by--
       (A) submitting tradeable allowances from another nation's 
     market in greenhouse gas emissions under the conditions 
     described in section --0312(b)(1);
       (B) submitting a registered net increase in sequestration, 
     as registered in the National Greenhouse Gas Database 
     established under section --0201, and as adjusted by the 
     appropriate sequestration discount rate established under 
     section --0371; or
       (C) submitting a greenhouse gas emission reduction (other 
     than a registered net increase in sequestration) that was 
     registered in the National Greenhouse Gas Database by a 
     person that is not a covered entity.
       (b) Termination.--An entity that executes an agreement 
     described in subsection (a) may terminate the agreement at 
     any time.
       (c) Failure to Meet Commitment.--If an entity that executes 
     an agreement described in subsection (a) fails to achieve the 
     level of emissions to which it committed by calendar year 
     2010--
       (1) its requirements under section --0301 shall be 
     increased by the amount of any tradeable allowances provided 
     to it under subsection (a)(1); and
       (2) any tradeable allowances submitted thereafter shall be 
     counted first against the increase in those requirements.

             Subtitle C--Climate Change Credit Corporation

     SEC. 351. ESTABLISHMENT.

       (a) In General.--The Climate Change Credit Corporation is 
     established as a nonprofit corporation without stock. The 
     Corporation shall not be considered to be an agency or 
     establishment of the United States Government.
       (b) Applicable Laws.--The Corporation shall be subject to 
     the provisions of this title and, to the extent consistent 
     with this title, to the District of Columbia Business 
     Corporation Act.
       (c) Board of Directors.--The Corporation shall have a board 
     of directors of 5 individuals who are citizens of the United 
     States, of whom 1 shall be elected annually by the board to 
     serve as chairman. No more than 3 members of the board 
     serving at any time may be affiliated with the same political 
     party. The members of the board shall be appointed by the 
     President of the United States, by and with the advice and 
     consent of the Senate and shall serve for terms of 5 years.

     SEC. 352. PURPOSES AND FUNCTIONS.

       (a) Trading.--The Corporation--
       (1) shall receive and manage tradeable allowances allocated 
     to it under section --0333(a)(2); and
       (2) shall buy and sell tradeable allowances, whether 
     allocated to it under that section or obtained by purchase, 
     trade, or donation from other entities; but
       (3) may not retire tradeable allowances unused.
       (b) Use of Tradeable Allowances and Proceeds.--
       (1) In general.--The Corporation shall use the tradeable 
     allowances, and proceeds derived from its trading activities 
     in tradeable allowances, to reduce costs borne by consumers 
     as a result of the greenhouse gas reduction requirements of 
     this division. The reductions--
       (A) may be obtained by buy-down, subsidy, negotiation of 
     discounts, consumer rebates, or otherwise;
       (B) shall be, as nearly as possible, equitably distributed 
     across all regions of the United States; and
       (C) may include arrangements for preferential treatment to 
     consumers who can least afford any such increased costs.
       (2) Transition assistance to dislocated workers and 
     communities.--The Corporation shall allocate a percentage of 
     the proceeds derived from its trading activities in tradeable 
     allowances to provide transition assistance to dislocated 
     workers and communities. Transition assistance may take the 
     form of--
       (A) grants to employers, employer associations, and 
     representatives of employees--
       (i) to provide training, adjustment assistance, and 
     employment services to dislocated workers; and
       (ii) to make income-maintenance and needs-related payments 
     to dislocated workers; and
       (B) grants to State and local governments to assist 
     communities in attracting new employers or providing 
     essential local government services.
       (3) Phase-out of transition assistance.--The percentage 
     allocated by the Corporation under paragraph (2)--
       (A) shall be 20 percent for 2010;
       (B) shall be reduced by 2 percentage points each year 
     thereafter; and
       (C) may not be reduced below zero.
       (4) Adaptation and mitigation assistance for low-income 
     persons and communities.--The Corporation shall allocate at 
     least 10 percent of the proceeds derived from its trading 
     activities to funding climate change adaptation and 
     mitigation programs to assist low-income populations 
     identified in the report submitted under section --0105(b) as 
     having particular needs in addressing the impact of climate 
     change.
       (5) Adaptation assistance for fish and wildlife habitat.--
     The Corporation shall fund efforts to strengthen and restore 
     habitat that improves the ability of fish and wildlife to 
     adapt successfully to climate change. The Corporation shall 
     deposit the proceeds from no less than 10 percent of the 
     total allowances allocated to it in the wildlife restoration 
     fund subaccount known as the Wildlife Conservation and 
     Restoration Account established under section 3 of the

[[Page S6967]]

     Pittman-Robertson Wildlife Restoration Act (16 U.S.C. 669b). 
     Amounts deposited in the subaccount under this paragraph 
     shall be available without further appropriation for 
     obligation and expenditure under that Act.
       (6) Technology deployment programs.--The Corporation shall 
     establish and carry out a program, through direct grants, 
     revolving loan programs, or other financial measures, to 
     provide support for the deployment of technology to assist in 
     compliance with this Act by distributing the proceeds from no 
     less than 50 percent of the total allowances allocated in 
     support of the program established under section --0491.
       (c) Appropriations.--Notwithstanding any other provision of 
     this Act, no funds may be obligated or expended by the 
     Corporation except as provided by appropriations Acts.

            Subtitle D--Sequestration Accounting; Penalties

     SEC. 371. SEQUESTRATION ACCOUNTING.

       (a) Sequestration Accounting.--If a covered entity uses a 
     registered net increase in sequestration to satisfy the 
     requirements of section --0301 for any year, that covered 
     entity shall submit information to the Administrator every 5 
     years thereafter sufficient to allow the Administrator to 
     determine, using the methods and standards created under 
     section --0204, whether that net increase in sequestration 
     still exists. Unless the Administrator determines that the 
     net increase in sequestration continues to exist, the covered 
     entity shall offset any loss of sequestration by submitting 
     additional tradeable allowances of equivalent amount in the 
     calender year following that determination.
       (b) Regulations Required.--The Secretary, acting through 
     the Under Secretary of Commerce for Science and Technology, 
     in coordination with the Secretary of Agriculture, the 
     Secretary of Energy, and the Administrator, shall issue 
     regulations establishing the sequestration accounting rules 
     for all classes of sequestration projects.
       (c) Criteria for Regulations.--In issuing regulations under 
     this section, the Secretary shall use the following criteria:
       (1) If the range of possible amounts of net increase in 
     sequestration for a particular class of sequestration project 
     is not more than 10 percent of the median of that range, the 
     amount of sequestration awarded shall be equal to the median 
     value of that range.
       (2) If the range of possible amounts of net increase in 
     sequestration for a particular class of sequestration project 
     is more than 10 percent of the median of that range, the 
     amount of sequestration awarded shall be equal to the fifth 
     percentile of that range.
       (3) The regulations shall include procedures for accounting 
     for potential leakage from sequestration projects and for 
     ensuring that any registered increase in sequestration is in 
     addition that which would have occurred if this Act had not 
     been enacted.
       (d) Updates.--The Secretary shall update the sequestration 
     accounting rules for every class of sequestration project at 
     least once every 5 years.

     SEC. 372. PENALTIES.

       Any covered entity that fails to meet the requirements of 
     section --0301 for a year shall be liable for a civil 
     penalty, payable to the Administrator, equal to thrice the 
     market value (determined as of the last day of the year at 
     issue) of the tradeable allowances that would be necessary 
     for that covered entity to meet those requirements on the 
     date of the emission that resulted in the violation.

                TITLE IV--INNOVATION AND COMPETITIVENESS

     SEC. 401. FINDINGS.

       The Congress finds the following:
       (1) Innovation, the process that ultimately provides new 
     and improved products, manufacturing processes, and services, 
     is the basis for technological progress. This technological 
     advancement is a key element of sustained economic growth.
       (2) The innovation economy is fundamentally different from 
     the industrial or even the information economy. It requires a 
     new vision and new approaches.
       (3) Changing innovation processes and the evolution of the 
     relative contribution made by the private and public sectors 
     have emphasized the need for strong industry-science 
     linkages.
       (4) Patent regimes play an increasingly complex role in 
     encouraging innovation, disseminating scientific and 
     technical knowledge, and enhancing market entry and firm 
     creation.
       (5) Increasing participation and maintaining quality 
     standards in tertiary education in science and technology are 
     imperative to meet growing demand for workers with scientific 
     and technological knowledge and skills.
       (6) Research, innovation, and human capital are our 
     principal strengths. By sustaining United States investments 
     in research and finding collaborative arrangements to 
     leverage existing resources and funds in a scarce budget 
     environment, we ensure that America remains at the forefront 
     of scientific and technological capability.
       (7) Technology transfer of publicly funded research is a 
     critical mechanism for optimizing the return on taxpayer 
     investment, particularly where other benefits are not 
     measurable at all or are very long-term.
       (8) Identifying metrics to quantify program effectiveness 
     is of increasing importance because the entire innovation 
     process is continuing to evolve in an arena of increasing 
     global competition. Metrics need to take into account a wide 
     range of steps in a highly complex process, as well as the 
     ultimate product or service, but should not constrain the 
     continued evolution or development of new technology transfer 
     approaches.
       (9) The United States lacks a national innovation strategy 
     and agenda, including an aggressive public policy strategy 
     that energizes the environment for national innovation, and 
     no Federal agency is responsible for developing national 
     innovation policy.

                 Subtitle A--Innovation Infrastructure

     SEC. 421. THE INNOVATION ADMINISTRATION.

       (a) In General.--Section 5 of the Stevenson-Wydler 
     Technology Innovation Act of 1990 (15 U.S.C. 3704) is 
     amended--
       (1) by striking ``a Technology'' in subsection (a) and 
     inserting ``an Innovation'';
       (2) by striking ``The Technology'' in subsection (a) and 
     inserting ``The Innovation'';
       (3) by striking ``of Technology'' in subsection (a)(3) and 
     inserting ``of Innovation'';
       (4) by striking ``Technology'' each place it appears in 
     subsection (b) and in subsection (c)(1) and inserting 
     ``Innovation'';
       (5) by inserting ``(1) In general.--'' before ``The 
     Secretary'' in subsection (c) and redesignating paragraphs 
     (1) through (15) as subparagraphs (A) through (O); and
       (6) by adding at the end of subsection (c) the following:
       ``(2) Specific innovation-related duties.--
       ``(A) In general.--The Secretary, through the Under 
     Secretary, shall--
       ``(i) provide advice to the President with respect to the 
     policies and conduct of the Innovation Administration, 
     including ways to improve research and development concerning 
     climate change innovation and the methods of collecting and 
     disseminating findings of such research;
       ``(ii) provide advice to the President and the Congress on 
     the development of climate change innovation research 
     programs;
       ``(iii) develop and monitor metrics to be used by the 
     Federal government in managing the innovation process;
       ``(iv) develop and establish government wide climate change 
     innovation policy and strategic plans, consistent with the 
     strategic plans of the United States Climate Change Science 
     Program and the United States Climate Technology Challenge 
     Program, including an implementation plan, developed in 
     consultation with the Secretary of Energy and the Climate 
     Change Credit Corporation, for the Climate Technology 
     Challenge Program under section --0491, addressing technology 
     priorities, total funding, opportunities for Federal 
     procurement, and other issues;
       ``(v) review and evaluate on a continuing basis--

       ``(I) technologies available for transfer and deployment to 
     the commercial sector;
       ``(II) all statutes and regulations pertaining to Federal 
     programs which assist in the transfer and deployment of 
     technologies, both domestically and internationally; and
       ``(III) new and emerging innovation policy issues affecting 
     the deployment of new technologies, including identification 
     of barriers to commercialization and recommendations for 
     removal of those barriers;

       ``(vi) assess the extent to which such policies, programs, 
     practices, and procedures facilitate or impede the promotion 
     of the policies set forth in subsection (b);
       ``(vii) gather information about the implementation, 
     effectiveness, and impact of the deployed climate change 
     related technologies based on metrics developed under clause 
     (iii);
       ``(viii) make recommendations to the President and the 
     Congress and other officials of Federal agencies or other 
     Federal entities, regarding ways to better promote the 
     policies developed under paragraph (1)(B);
       ``(ix) provide advice, recommendations, legislative 
     proposals to the Congress on a continuing basis, and any 
     additional information the Agency or the Congress deems 
     appropriate;
       ``(x) make recommendations to the President, the Congress, 
     and Federal agencies or entities regarding policy on Federal 
     purchasing behavior that would provide incentives to industry 
     to bring new products to market faster;
       ``(xi) conduct economic analysis in support of climate 
     change technology development and deployment;
       ``(xii) work with academia to develop education programs to 
     support the multi-disciplinary nature of innovation;
       ``(xiii) establish partnerships with industry to determine 
     the needs for the future workforce to support deployed 
     technologies;
       ``(xiv) assist in the search for partners to establish 
     public-private partnerships, and in searching for capital 
     funds from the investment community for new businesses in the 
     climate change technology sector; and
       ``(xv) identify opportunities to promote cooperation on 
     research, development, and commercialization with other 
     countries and make recommendations, based on the 
     opportunities so identified to the Secretary of State.
       ``(B) Annual report.--
       ``(i) In general.--The Administrator shall prepare and 
     submit to the President and the appropriate committees of the 
     Congress a report entitled `Climate Change Innovation: A 
     Progress Report' within 6 months after the date of enactment 
     of the Climate Stewardship and Innovation Act of 2005 and 
     annually thereafter.

[[Page S6968]]

       ``(ii) Contents.--The report shall assess the status of the 
     Nation in achieving the purposes set forth in subsection (b), 
     with particular focus on the new and emerging issues 
     impacting the deployment of new climate change technologies. 
     The report shall present, as appropriate, available data on 
     research, education, workforce, financing, and market 
     opportunities. The report shall include recommendations for 
     policy change.
       ``(iii) Consultation required.--In determining the 
     findings, conclusions, and recommendations of the report, the 
     Agency shall seek input from industry, academia, and other 
     interested parties.''.
       (b) References.--Any reference to the Technology 
     Administration in any other Federal law, Executive order, 
     rule, regulation, or delegation of authority, or any document 
     or pertaining to the Technology Administration or an officer 
     or employee of the Technology Administration, is deemed to 
     refer to the Innovation Administration or an officer or 
     employee of the Innovation Administration, as appropriate.

     SEC. 422. TECHNOLOGY TRANSFER OPPORTUNITIES.

       (a) In General.--The Secretary of Commerce shall conduct a 
     study of technology transfer barriers, best practices, and 
     outcomes of technology transfer activities at Federal 
     laboratories related to the licensing and commercialization 
     of energy efficient technologies, and other technologies 
     that, compared to similar technology in commercial use, 
     result in reduced emissions of greenhouse gases, increased 
     ability to adapt to climate change impacts, or increased 
     sequestration of greenhouse gases. The Secretary shall submit 
     a report setting forth the findings and conclusions of the 
     study to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Science within 6 months after the date of enactment of this 
     Act. The Secretary shall work with the existing interagency 
     working group to address identified barriers to technology 
     transfer.
       (b) Business Opportunities Study.--The Secretary of 
     Commerce shall perform an analysis of business opportunities, 
     both domestically and internationally, available for climate 
     change technologies. The Secretary shall transmit the 
     Secretary's findings and recommendations from the first such 
     analysis to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Science within 6 months after the date of enactment of this 
     Act, and shall transmit a revised report of such findings and 
     recommendations to those Committees annually thereafter.
       (c) Agency Report To Include Information on Technology 
     Transfer Income and Royalties.--Paragraph (2)(B) of section 
     11(f) of the Stevenson-Wydler Technology Innovation Act of 
     1980 (15 U.S.C. 3710(f)) is amended--
       (1) by striking ``and'' after the semicolon in clause (vi);
       (2) by redesignating clause (vii) as clause (ix); and
       (3) by inserting after clause (vi) the following:
       ``(vii) the number of fully-executed licenses which 
     received royalty income in the preceding fiscal year for 
     climate-change or energy-efficient technology;
       ``(viii) the total earned royalty income for climate-change 
     or energy-efficient technology; and''.
       (d) Increased Incentives for Development of Climate-change 
     or Energy-efficient Technology.--Section 14(a) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710c(a)) is amended--
       (1) by striking ``15 percent,'' in paragraph (1)(A) and 
     inserting ``15 percent (25 percent for climate change-related 
     technologies),''; and
       (2) by inserting ``($250,000 for climate change-related 
     technologies)'' after ``$150,000'' each place it appears in 
     paragraph (3).

     SEC. 423. GOVERNMENT-SPONSORED TECHNOLOGY INVESTMENT PROGRAM.

       (a) Purpose.--It is the purpose of this section to provide 
     financial support for the development, through private 
     enterprise, of technology that has potential application to 
     climate change adaptation and mitigation.
       (b) Financial Support.--The Secretary of Commerce may 
     establish a nonprofit government sponsored enterprise for the 
     purpose of providing investment in private sector 
     technologies that show promise for climate change adaptation 
     and mitigation applications.
       (c) Terms; Conditions; Transparency.--The Secretary shall 
     report within 30 days after the end of each calendar quarter 
     to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Science on its operations during that preceding calendar 
     quarter.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce for the use 
     of the enterprise established under subsection (b) such sums 
     as may be necessary to carry out the purpose of this section.

     SEC. 424. FEDERAL TECHNOLOGY INNOVATION PERSONNEL INCENTIVES.

       The Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 24. FEDERAL TECHNOLOGY INNOVATION PERSONNEL 
                   INCENTIVES.

       ``(a) In General.--The head of a Federal laboratory may 
     authorize the participation by any employee of the laboratory 
     in an activity described in subsection (b) in order to 
     achieve the purposes of this division.
       ``(b) Authorized Activities.--
       ``(1) Commercial development participation arrangements.--
       ``(A) In general.--The head of a Federal laboratory may, 
     under the authority provided by section 12(b)(5) of this Act, 
     authorize an employee to participate, as an officer or 
     employee, in the creation of an enterprise established to 
     commercially exploit research work realized in carrying out 
     that employee's responsibilities as an employee of that 
     laboratory for a period of up to 24 months. The authority may 
     be renewed for an additional 12-month period.
       ``(B) Limitations.--In addition to the requirements set 
     forth in section 12, an employee may not be authorized under 
     subparagraph (A) to participate in such an enterprise if--
       ``(i) it would be prejudicial to the normal functioning of 
     the laboratory;
       ``(ii) by its nature, terms and conditions, or the manner 
     in which the authority would be exercised, participation by 
     that employ would reflect adversely on the functions 
     exercised by that employee as an employee of the laboratory, 
     or risk compromising or calling in question the independence 
     or neutrality of the laboratory; or
       ``(iii) the interests of the enterprise are of such a 
     nature as to be prejudicial to the mission or integrity of 
     the laboratory or employee.
       ``(C) Relationship to laboratory employment.--
       ``(i) Representation.--The employee may not represent the 
     employee's official position or the laboratory while 
     participating in the creation of the enterprise.
       ``(ii) Federal employment status.--Beginning with the 
     effective date of the authorization under subsection (a), an 
     employee shall be placed in a temporary status without duties 
     or pay and shall cease all duties in connection with the 
     laboratory.
       ``(iii) Return to service.--At the end of the authorization 
     period, the employee may be restored to his former position 
     in the laboratory upon termination of any employment or 
     professional relationship with the enterprise.
       ``(2) Service in private sector advisory capacity.--
       ``(A) In general.--The head of a Federal laboratory may, 
     under the authority provided by section 12(b)(5) of this Act, 
     authorize an employee to serve, as a member of the board of 
     directors of, as a member of an advisory committee to, or in 
     any similar capacity with a corporation, partnership, joint 
     venture, or other business enterprise for a period of not 
     more than 5 years in order to provide advice and counsel on 
     ways to improve the diffusion and use of an invention or 
     other intellectual property of a Federal laboratory.
       ``(B) Qualifying investment.--Under the authorization, an 
     employee authorized to serve on the board of directors of a 
     corporation may purchase and hold the number of qualifying 
     shares of stock needed to serve as a member of that board.
       ``(C) Participation in certain proceedings.--An employee 
     authorized under subparagraph (A) may not participate in any 
     grant evaluation, contract negotiation, or other proceeding 
     in which the corporation, partnership, joint venture, or 
     other business enterprise has an interest during the 
     authorization period.''.

     SEC. 425. INTERDISCIPLINARY RESEARCH AND COMMERCIALIZATION.

       (a) In General.--The Director of the National Science 
     Foundation shall develop and implement a plan to increase and 
     establish priorities for funding for multidisciplinary and 
     interdisciplinary research at universities in support of the 
     adaptation to and mitigation of climate change. The plan 
     shall--
       (1) address the cross-fertilization and fusion of research 
     within and across the biological and physical sciences, the 
     spectrum of engineering disciplines, and entirely new fields 
     of scientific exploration; and
       (2) include the area of emerging service sciences.
       (b) Report to Congress.--The Director shall transmit a copy 
     of the plan to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Science within 6 months after the date of enactment of this 
     Act.
       (c) Service Science Defined.--In this section, the term 
     ``service science'' means the melding together of the fields 
     of computer science, operations research, industrial 
     engineering, mathematics, management science, decision 
     sciences, social sciences, and legal sciences in a manner 
     that may transform entire enterprises and drive innovation at 
     the intersection of business and technology expertise.

     SEC. 426. CLIMATE INNOVATION PARTNERSHIPS.

       (a) In General.--The Secretary of Commerce, in consultation 
     with the Director of the National Science Foundation, shall 
     create a program of public-private partnerships that--
       (1) focus on supporting climate change related regional 
     innovation;
       (2) bridge the gap between the long-term research and 
     commercialization;
       (3) focus on deployment of technologies needed by a 
     particular region in adapting or mitigating the impacts of 
     climate change; and

[[Page S6969]]

       (4) support activities that are selected from proposals 
     submitted in merit-based competitions.
       (b) Institutional Diversity.--In creating the program, the 
     Secretary and the Administrator shall--
       (1) encourage institutional diversity; and
       (2) provide that universities, research centers, national 
     laboratories, and other non-profit organizations are allowed 
     to partner with private industry in submitting applications.
       (c) Grants.--The Secretary may make grants under the 
     program to the partnerships, but the Federal share of funding 
     for any project may not exceed 50 percent of the total 
     investment in any fiscal year.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section.

     SEC. 427. NATIONAL MEDAL OF CLIMATE STEWARDSHIP INNOVATION.

       (a) In General.--There is established a National Medal of 
     Climate Stewardship Innovation, which shall be of such design 
     and materials, and bear such inscription, as the President 
     may prescribe. The President shall award the medal on the 
     basis of recommendations submitted by the National Science 
     Foundation and the Secretary of Commerce to individuals who, 
     in the judgment of the President, are deserving of special 
     recognition by reason of their outstanding contributions to 
     knowledge in the field of climate change innovation.
       (b) Criteria.--The medal shall be awarded in accordance 
     with the following criteria:
       (1) Annual limit.--No more than 20 individuals may be 
     awarded the medal in any calendar year.
       (2) Citizenship.--No individual may be awarded the medal 
     unless, at the time the award is made, the individual is--
       (A) a citizen or other national of the United States; or
       (B) an alien lawfully admitted to the United States for 
     permanent residence who--
       (i) has filed a petition for naturalization in the manner 
     prescribed by section 334 of the Immigration and Nationality 
     Act (8 U.S.C. 1445); and
       (ii) is not permanently ineligible to become a citizen of 
     the United States.
       (3) Posthumous award.--
       (A) In general.--Notwithstanding paragraph (2), the medal 
     may be awarded posthumously to an individual who, at the time 
     of death, met the conditions set forth in paragraph (2).
       (B) 5-year limitation.--Notwithstanding subparagraph (A), 
     the medal may not be awarded posthumously to an individual 
     after the fifth anniversary of that individual's death.
       (c) Inscription and Certificate.--Each medal shall be 
     suitably inscribed. Each individual awarded the medal shall 
     also receive a citation descriptive of the award.
       (d) Presentation.--The presentation of the medal shall be 
     made by the President with such ceremonies as the President 
     deems proper, including attendance by appropriate Members of 
     Congress.

     SEC. 428. MATH AND SCIENCE TEACHERS' ENHANCEMENT PROGRAM.

       (a) In General.--The Director of the National Science 
     Foundation shall establish within the Foundation a climate 
     change science and technology enhancement program for 
     teachers.
       (b) Purpose.--The purpose of the program is to provide for 
     professional development of mathematics and science teachers 
     at elementary, middle, and secondary schools (as defined by 
     the Director), including improving the education and skills 
     of those teachers with respect to--
       (1) teaching strategies;
       (2) subject-area expertise; and
       (3) the understanding of climate change science and 
     technology and the environmental, economic, and social 
     impacts of climate change on commerce.
       (c) Program Areas.--In carrying out the program under this 
     section, the Director shall focus on the areas of--
       (1) scientific measurements;
       (2) tests and standards development;
       (3) industrial competitiveness and quality;
       (4) manufacturing;
       (5) technology transfer; and
       (6) any other area of expertise that the Director 
     determines to be appropriate.
       (d) Application Procedure.--The Director shall prescribe 
     procedures and selection criteria for participants in the 
     program.
       (e) Awards.--The Director shall issue awards under the 
     program to participants. In issuing the awards, the Director 
     shall ensure that the maximum number of participants 
     practicable participate in the program. In order to ensure a 
     maximum level of participation of participants, the program 
     under this section shall be conducted on an annual basis 
     during the summer months, when a majority of elementary, 
     middle, and secondary schools are not in classes.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Director for carrying out this 
     section--
       (1) $2,500,000 for fiscal year 2006; and
       (2) $2,500,000 for fiscal year 2007.

     SEC. 429. PATENT STUDY.

       (a) In General.--The Director of the Patent and Trademark 
     Office, in consultation with representatives of interested 
     parties in the private sector, shall conduct a study to 
     determine the extent to which changes to the United States 
     patent system are necessary to increase the flow of climate 
     change-related technologies. The study shall address--
       (1) the balance between the protection of the inventor and 
     the disclosure of information;
       (2) the role of patents in innovation within the covered 
     sectors;
       (3) the extent to which patents facilitate increased 
     investments in climate change research and development;
       (4) the international deployment of United States developed 
     climate change related technologies on the United States 
     patent system;
       (5) ways to leverage databases as innovation tools;
       (6) best practices for collaborative standard setting; and
       (7) any other issues the Director deems appropriate.
       (b) Report.--Within 6 months after the date of enactment of 
     this Act, the Director shall transmit a report setting forth 
     the findings and conclusions of the study to the Congress.

     SEC. 430. LESSONS-LEARNED PROGRAM.

       (a) In General.--Within 180 days after the date of 
     enactment of this Act, the Secretary of Energy shall 
     establish a national lessons-learned and best practices 
     program to ensure that lessons learned and best practices 
     concerning energy efficiency and greenhouse gas emission 
     reductions are available to the public. The program shall 
     contain consumer awareness initiatives including product 
     labeling and campaigns to raise public awareness. The 
     Secretary shall determine the process and frequency by which 
     the information is provided.
       (b) Program Content.--The program--
       (1) may include experiences realized outside of the Federal 
     government;
       (2) shall include criteria by which entries in the program 
     are determined;
       (3) shall use a standardized, user-friendly format for data 
     reports; and
       (4) may include any other matters the Secretary deems 
     appropriate.

                Subtitle B--Specific Program Initiatives

     SEC. 451. TRANSPORTATION.

       (a) In General.--The Secretary of Energy, the Administrator 
     of the Environmental Protection Agency, and the Secretary of 
     Transportation shall establish jointly a competitive, merit-
     based research program to fund proposals that--
       (1) develop technologies that aid in reducing fuel use or 
     reduce greenhouse gas emissions associated with any fuel;
       (2) further develop existing or new technologies to create 
     renewable fuels created from less carbon or energy-intensive 
     practices than current renewable fuel production; or
       (3) remove existing barriers for deployment of existing 
     fuels that dramatically reduce greenhouse gas emissions;
       (4) support low-carbon transportation fuels, including 
     renewable hydrogen, advanced cellulosic ethanol, and biomass-
     based diesel substitutes, and the technical hurdles to market 
     entry;
       (5) support short-term and long-term technology 
     improvements for United States cars and light trucks that 
     reduce greenhouse gas emissions, including advanced, high-
     power hybrid vehicle batteries, advanced gasoline engine 
     designs, fuel cells, hydrogen storage, power electronics, and 
     lightweight materials;
       (6) support advanced heavy-duty truck technologies to 
     reduce greenhouse gas emissions from the existing and new 
     fleets, including aerodynamics, weight reduction, improved 
     tires, anti-idling technology, high-efficiency engines, and 
     hybrid systems; or
       (7) expand research into the climatological impacts of air 
     travel and support advanced technologies to reduce greenhouse 
     gas emissions from aircraft including advanced turbines, 
     aerodynamics, and logistics technology that reduces delays, 
     increases load factors and cuts in-air emissions.
       (b) Real-world Test Procedures.--The Administrator of the 
     Environmental Protection Agency, in consultation with the 
     Secretary of Transportation, shall--
       (1) conduct research and establish a Federal test procedure 
     for certifying fuel economy of heavy duty vehicles; and
       (2) update Federal test procedures for certifying fuel 
     economy of automobiles and light duty trucks so the results 
     better reflect real-world operating conditions.
       (c) Incorporation into Program.--The Secretaries shall 
     ensure that the program established under subsection (a) is 
     incorporated into the United States Climate Technology 
     Challenge Program.
       (d) Marketing Study.--The Secretary of Transportation, in 
     coordination with the Secretary of Commerce, shall conduct a 
     study on how the government can accelerate the market for 
     low-carbon vehicles. The results of the study shall be 
     submitted to the Congress within 6 months after the date of 
     enactment of this Act.

     SEC. 452. AGRICULTURAL SEQUESTRATION.

       (a) In General.--The Director of the Office of Science and 
     Technology Policy shall establish an interagency panel of 
     representatives from the United States Forest Service, 
     Agriculture Research Service, Agricultural Experiment 
     Stations and Extension Service, Economic Research Service 
     Natural Resource Conservation Service, Environmental 
     Protection Agency, the U.S. Geological Survey, and the 
     National Institute of Standards and Technology to establish 
     standards for measurement (and re-measurement) of sequestered 
     carbon, including lab procedures,

[[Page S6970]]

     field sampling methods, and accuracy of sampling statistics.
       (b) Duties.--The interagency panel shall--
       (1) develop discounted default values for the amount of 
     greenhouse gas emission reductions due to carbon 
     sequestration or emissions reductions from improved practices 
     and technologies;
       (2) develop technologies for low-cost laboratory and field 
     measurement;
       (3) develop procedures to improve the accuracy of equations 
     used to estimate greenhouse gas emissions reductions produced 
     by adoption of improved land management technologies and 
     practices;
       (4) develop local and regional databases on carbon 
     sequestration in soils and biomass, greenhouse gas emissions, 
     and adopted land management technologies and practices;
       (5) develop computation methods for additionality discounts 
     for prospective greenhouse gas offsets;
       (6) develop entitywide reporting requirements to evaluate 
     project-level leakage;
       (7) develop commodity-specific greenhouse gas offset 
     discount factors for market-level leakage, and update those 
     factors periodically;
       (8) develop guidelines and standards for greenhouse gas 
     offset and reduction project monitoring and verification and 
     uniform qualifications for third party verifiers, including 
     specification of conflict of interest conditions;
       (9) increase landowner accessibility to technologies and 
     practices by--
       (A) improving and expanding availability and adoption of 
     best management practices for soils, crop residues, and 
     forests to achieve additional carbon sequestration that meets 
     standards as bona fide greenhouse gas offsets;
       (B) improving and expanding availability and adoption of 
     best management practices for soils, crop residues, and 
     forests to achieve reductions in emissions of carbon dioxide, 
     methane, and nitrous oxides that meet standards as bona fide 
     greenhouse gas emissions reductions; and
       (C) establishing incentives for land managers to help 
     finance investments in facilities that produce bona fide 
     greenhouse gas offsets or reductions through carbon 
     sequestration or direct greenhouse gas emissions reductions; 
     and
       (10) establish best practices to address non-permanence and 
     risk of release of sequestered greenhouse gases by--
       (A) assessing and quantifying risks, both advertent and 
     inadvertent, of release of greenhouse gases sequestered in 
     soils and biomass; and
       (B) establishing insurance instruments concerning the 
     release, both advertent and inadvertent, of sequestered 
     greenhouse gases.
       (c) Additionality Defined.--In this section the term 
     ``additionality'' means emissions reduction and sequestration 
     activities that result in atmospheric benefits that would not 
     otherwise have occurred.

     SEC. 453. GEOLOGICAL STORAGE OF SEQUESTERED GREENHOUSE GASES.

       (a) In General.--The Secretary of Energy, in consultation 
     with the Secretary of Agriculture and the Administrator of 
     the Environmental Protection Agency, shall establish 
     guidelines for setting individual project baselines for 
     reductions of greenhouse gas emissions and greenhouse gas 
     storage in various types of geological formations to serve as 
     the basis for determining the amount of greenhouse gas 
     reductions produced by the project.
       (b) Specific Activities.--The Secretary of Energy, in 
     consultation with the Director of the U.S. Geological Survey, 
     shall--
       (1) develop local and regional databases on existing 
     practices and technologies for greenhouse gas injection in 
     underground aquifers;
       (2) develop methods for computation of additionality 
     discounts for prospective greenhouse gas reductions or 
     offsets due to carbon dioxide injection and storage in 
     underground aquifers;
       (3) develop accepted standards for monitoring of carbon 
     dioxide stored in geological subsurface reservoirs by--
       (A) developing minimum suitability standards for 
     identifying and monitoring of geological storage sites 
     including oil, gas, and coal bed methane reservoir and deep 
     saline aquifers; and
       (B) testing monitoring standards using sites with long term 
     (multi-decade) large injections of carbon dioxide into oil 
     field enhanced recovery projects; and
       (4) address non-permanence and risk of release of 
     sequestered greenhouse gas by--
       (A) establishing guidelines for risk assessment of 
     inadvertent greenhouse gas release, both long-term and short-
     term, associated with geological sequestration sites; and
       (B) developing insurance instruments to address greenhouse 
     gas release liability in geological sequestration.
       (c) National Geological Carbon Sequestration Assessment.--
       (1) Findings.--The Congress finds the following:
       (A) One of the most promising options for avoiding 
     emissions of carbon dioxide is through long-term storage by 
     geological sequestration in stable geological formations, 
     which involves--
       (i) capturing carbon dioxide from industrial sources; and
       (ii) injecting the captured carbon dioxide into geological 
     storage sites, such as deep saline formations, unmineable 
     coal seams, and depleted gas and oil fields.
       (B) As of the date of introduction of this Act, there are 
     only very broad estimates of national geological storage 
     capacity.
       (C) The potential to recover additional oil and gas 
     resources through enhanced oil and gas recovery using 
     captured carbon dioxide emissions is an option that could add 
     the equivalent of tens-of-billions of barrels of oil to the 
     national resource base.
       (D) An initial geological survey of storage capacity in the 
     subsurface of sedimentary basins in the United States would--
       (i) provide estimates of storage capacity based on clearly 
     defined geological parameters with stated ranges of 
     uncertainty;
       (ii) allow for an initial determination of whether a basin 
     or 1 or more portions of the basin may be developed into a 
     storage site; and
       (iii) provide information on--

       (I) a baseline for monitoring injections and post injection 
     phases of storage; and
       (II) early opportunities for matching carbon dioxide 
     sources and sinks for early deployment of zero-emissions 
     fossil fuel plants using capture and storage technologies.

       (2) National Geological Carbon Sequestration Assessment.--
       (A) Development and testing of assessment methodology.--
       (i) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the United States 
     Geological Survey shall develop and test methods for the 
     conduct of a national assessment of geological storage 
     capacity for carbon dioxide.
       (ii) Opportunity for review and comment.--During the period 
     beginning on the date that is 180 days after the date of 
     enactment of this Act and ending on the date of completion of 
     the development and testing of the methodologies under clause 
     (i), the Director shall provide the Under Secretary for 
     Oceans and Atmosphere of the Department of Commerce, the 
     Secretary of Energy, the Administrator of the Environmental 
     Protection Agency, the Director of the Minerals Management 
     Service, the Director of the Bureau of Land Management, the 
     heads of other Federal land management agencies, the heads of 
     State land management agencies, industry stakeholders, and 
     other interested parties with an opportunity to review and 
     comment on the proposed methodologies.
       (B) Assessment.--
       (i) In general.--The Director shall conduct the assessment 
     during the period beginning on the date on which the 
     development and testing of the methodologies is completed 
     under subparagraph (A) and ending 4 years after the date of 
     enactment of this Act.
       (ii) Availability of information.--The Director shall 
     establish an Internet database accessible to the public that 
     provides the results of the assessment, including a detailed 
     description of the data collected under the assessment.
       (iii) Report.--Not later than 1 year after the date on 
     which the assessment is completed under clause (i), the 
     Director shall submit to the appropriate committees of 
     Congress and the President a report that describes the 
     findings of the assessment.
       (3) Authorization of Appropriations.--There are authorized 
     to be appropriated $15,000,000 to carry out this section for 
     fiscal years 2006 through 2009.

     SEC. 454. ENERGY EFFICIENCY AUDITS.

       (a) In General.--The Secretary of Energy shall establish a 
     program to reduce greenhouse gas emissions through the 
     deployment of energy efficiency measures, including 
     appropriate technologies, by large commercial customers by 
     providing for energy audits. The program shall provide 
     incentives for large users of electricity or natural gas to 
     obtain an energy audit.
       (b) Components.--The energy audit shall provide users with 
     an inventory of potential energy efficiency measures, 
     including appropriate technologies, and their cost savings 
     over time, along with financing options to initiate the 
     project.
       (c) Reimbursement of Audit Costs.--If any of the 
     recommendations of an energy audit implemented by a facility 
     owner result in cost savings greater than 5 times the cost of 
     the original audit, then the facility owner shall reimburse 
     the Secretary for the cost of the audit.

     SEC. 455. ADAPTATION TECHNOLOGIES.

       (a) In General.--The Director of the Office of Science and 
     Technology Policy shall establish a program on adaptation 
     technologies as part of the Climate Technology Challenge 
     Program. The Director shall perform an assessment of the 
     climate change technological needs of various regions of the 
     country. This assessment shall be provided to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Science within 6 months 
     after the date of enactment of this Act.
       (b) Regional Estimates.--The Director of the Office of 
     Science and Technology Policy, in consultation with the 
     Secretaries of Transportation, Homeland Security, 
     Agriculture, Housing and Urban Development, Health and Human 
     Services, Defense, Interior, Energy, and Commerce, the 
     Administrator of the Environmental Protection Agency, the 
     Director of U.S. Geologic Survey, and other such Federal 
     offices as the Director deems necessary, along with relevant 
     State agencies, shall perform 6 regional infrastructure cost 
     assessments covering the United States, and a national cost 
     assessment, to provide estimates of the range of

[[Page S6971]]

     costs that should be anticipated for adaptation to the 
     impacts of climate change. The Director shall develop those 
     estimates for low, medium, and high probabilities of climate 
     change and its potential impacts. The assessments shall be 
     provided to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Science within 1 year after the date of enactment of this 
     Act.

     SEC. 456. ADVANCED RESEARCH AND DEVELOPMENT FOR SAFETY AND 
                   NONPROLIFERATION.

       The Secretary of Energy shall establish, operate, and 
     report biannually to Congress the results of--
       (1) a program of research and development focused on 
     advanced once-through fuel cycles;
       (2) a Nuclear System Modeling project to carry out the 
     analysis, research, simulation, and collection of engineering 
     data needed to evaluate all fuel cycles with respect to cost, 
     inherent safety, waste management and proliferation-avoidance 
     and -resistance; and
       (3) an Advanced Diversified Waste-Disposal Research Program 
     for deep-bore hole disposal options, alternative geological 
     environments, and improved engineered barriers.

           Subtitle C--Climate Technology Deployment Program


                       part i--program authority

     SEC. 471. GOVERNMENT-INDUSTRY PARTNERSHIPS FOR FIRST-OF-A-
                   KIND ENGINEERING DESIGN.

       (a) In General.--The Corporation may provide funding for a 
     cost-sharing program to address first-of-a-kind engineering 
     costs inherent in building the first facility of a 
     substantially new design that generates electricity with low 
     or no net greenhouse gas emissions or produces transportation 
     fuels that result in low or no net greenhouse gas emissions, 
     including Integrated Gasification Combined Cycle Advanced 
     Coal power generating facilities using carbon capture 
     technology with geological storage of greenhouse gases, 
     advanced reactor designs, large scale biofuels facilities 
     that maximize the use of cellulosic biomass, and large scale 
     solar concentrating power facilities.
       (b) Project Selection.--The Secretary of Energy in 
     coordination with the Corporation shall select the final 
     designs to be supported, in terms of reducing greenhouse gas 
     emissions, demonstrating a new technology, meeting other 
     clean air attainment goals, generating economic benefits, 
     contributing to energy security, contributing to fuel and 
     technology diversity, maintaining price stability, and 
     attaining cost effectiveness and economic competitiveness.
       (c) Cost-sharing limitations.--
       (1) Corporation's share of costs.--Costs for the program 
     shall be shared equally between the Corporation and the 
     builder of such first facilities.
       (2) Nuclear reactors.--Funding under this section for any 
     nuclear facility--
       (A) may not exceed $200,000,000 for an individual project; 
     and
       (B) shall be available for no more than 1 of each of the 3 
     designs certified by the Nuclear Regulatory Commission.
       (d) Reimbursement of Costs.--For any subsequently-built 
     facility that uses a design supported by the cost-sharing 
     program under this section, the Secretary of Energy and the 
     Corporation shall specify an amount to be paid to the 
     Corporation in order for the Corporation to receive full 
     reimbursement for costs the Corporation incurred in 
     connection with the design, considering the program's 
     objectives, including the costs of promoting the deployment 
     of cost-effective, economically competitive technologies with 
     no or low net greenhouse gas emissions.
       (e) Reimbursement for Delay.--If the construction of such a 
     first facility of a substantially new design is not started 
     within 10 years after the date on which a commitment under 
     the cost-sharing program is made by the Secretary, then the 
     industry partner shall reimburse the Corporation for any 
     costs incurred by the Corporation under the program.
       (f) Jurisdiction.--
       (1) Nuclear Regulatory Commission.--Nothing in this Act 
     shall affect the jurisdiction of the Nuclear Regulatory 
     Commission over nuclear power plant design approvals or 
     combined construction and operating licenses pursuant to the 
     Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
       (2) Regulatory agencies.--Nothing in this Act affects the 
     jurisdiction of any Federal, State, or local government 
     regulatory agency.

     SEC. 472. DEMONSTRATION PROGRAMS.

       (a) Nuclear Regulatory Commission Licensing Process.--
       (1) Demonstration program.--Within 24 months after the date 
     of enactment of this Act, the Secretary of Energy shall 
     establish a demonstration program to reduce the first-time 
     regulatory costs of the current Nuclear Regulatory Commission 
     licensing process incurred by the first applicant using an 
     advanced reactor design.
       (2) Permits; licenses; cost-sharing.--
       (A) The demonstration program shall--
       (i) address the Early Site Permit applications and the 
     combined construction and operating license applications; and
       (ii) be jointly funded by the Department of Energy and the 
     applicant.
       (B) The Secretary shall work with the applicant to 
     determine the appropriate percentage of costs that the 
     Department and the applicant shall each provide.
       (3) Reimbursement for license transfer.--If an applicant 
     decides to transfer a permit granted by the Commission under 
     the program to another entity, the applicant shall reimburse 
     the Department for its costs in obtaining the permit.
       (b) Retooling of Advanced Vehicle Manufacturing.--
       (1) In general.--Within 24 months after the date of 
     enactment of this Act, the Secretary of Energy shall 
     establish a program to demonstrate the effectiveness of 
     retooling an existing vehicle or vehicle component 
     manufacturing facility to reduce reduced greenhouse gas 
     emissions from vehicles and increasing competitiveness of 
     advanced technology vehicle production facilities.
       (2) Program elements.--
       (A) Activities supported.--The demonstration program shall 
     be designed--
       (i) to re-equip an existing manufacturing facility to 
     produce advanced technology vehicles or components that will 
     result in reduced greenhouse gas emissions; and
       (ii) to conduct engineering integration activities of 
     advanced technological vehicles and components.
       (B) Funding.--The program shall be jointly funded by the 
     private sector and the Department of Energy. Secretary of 
     Energy shall work with participating entities to determine 
     the appropriate percentage of costs that each shall provide.
       (C) Eligible components and activities.--The Secretary, in 
     coordination with the Administrator of the Environmental 
     Protection Agency and the Secretary of Transportation, shall 
     determine what advanced technology components and engineering 
     integration activities will qualify for support under the 
     program.
       (D) Eligible costs.--Costs eligible to be shared under this 
     subsection include the cost of engineering tasks related to--
       (i) incorporating qualifying components into the design of 
     advanced technology vehicles; and
       (ii) designing new tooling and equipment for production 
     facilities that produce qualifying components or advanced 
     technology vehicles.
       (3) Limitation.--No more than 2 facilities may receive 
     financial assistance under the program for re-equipment and 
     expansion or for engineering integration.
       (4) Advanced technology vehicle defined.--In this 
     subsection, the term ``advanced technology vehicle'' means a 
     light duty motor vehicle that is either a hybrid or advanced 
     lean burn technology motor vehicle, and that meets the 
     following additional performance criteria:
       (A) The vehicle shall meet the Tier II Bin 5 emission 
     standard established in regulations prescribed by the 
     Administrator under that Act.
       (B) The vehicle shall meet any new emission standard for 
     fine particulate matter prescribed by the Administrator under 
     that Act.
       (C) The vehicle shall achieve at least 125 percent of the 
     base year city fuel economy for its weight class.


                           part ii--financing

     SEC. 481. CLIMATE TECHNOLOGY FINANCING BOARD.

       (a) Purpose.--The Climate Technology Financing Board shall 
     work with the Sedretary of Energy to make financial 
     assistance available to joint venture partnerships and 
     promote private sector participation in financing eligible 
     projects under this subtitle.
       (b) Establishment.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Energy shall 
     establish within the Department of Energy a Climate 
     Technology Financing Board, which shall be responsible for 
     assisting the Secretary in carrying out this subtitle.
       (2) Membership.--The Climate Technology Financing Board 
     shall be comprised of--
       (A) the Secretary of Energy, who shall serve as chair; and
       (B) 6 additional members appointed by the Secretary, 
     including--
       (i) the Chief Financial Officer of the Department of 
     Energy;
       (ii) at least 1 representative of the Corporation; and
       (iii) other members with experience in corporate and 
     project finance in the energy sector as deemed necessary by 
     the Secretary to carry out the functions of the Board.
       (3) Representation of federal interest.--The Climate 
     Technology Financing Board shall represent the Federal 
     government's interest in all negotiations with project 
     developers interested in forming joint venture partnerships 
     and obtaining secured loans or loan guarantees under this 
     subtitle.
       (c) Regulations.--
       (1) In general.--Not later than 12 months after the date of 
     enactment of this Act, the Climate Technology Financing 
     Board, through the Secretary of Energy, shall publish in the 
     Federal Register such final regulations as may be necessary 
     to implement section --0482 of this title.
       (2) Project selection criteria.--In selecting eligible 
     projects for financial assistance under this subtitle, the 
     Board shall consider, among other relevant criteria--
       (A) the extent to which the project reduces greenhouse 
     gases, demonstrates new technologies, meets other clean air 
     attainment goals, generates economic benefits, contributes to 
     energy security, contributes to fuel and technology 
     diversity, and maintains price stability, cost effectiveness, 
     and economic competitiveness;

[[Page S6972]]

       (B) the extent to which assistance under this subtitle 
     would foster innovative public-private partnerships and 
     attract private equity investment;
       (C) the likelihood that assistance under this subtitle 
     would enable the project to proceed at an earlier date than 
     the project would otherwise be able to proceed without such 
     assistance;
       (D) the extent to which the project represents the 
     construction of the first generation of facilities that use 
     substantially new technology; and
       (E) any other criteria deemed necessary by the Secretary 
     for the promotion of long-term cost effective climate change-
     related technologies.
       (3) Mandatory regulatory provisions.--The regulations 
     required by paragraph (1) shall include the following:
       (A) The general terms and conditions under which non-
     recourse financial assistance will be provided. Those terms 
     shall include--
       (i) a debt-to-equity ratio of up to 80 percent debt from 
     the Corporation, approved by the Secretary, and no less than 
     20 percent equity from the project developer;
       (ii) a pledge of the eligible project's assets to the 
     Secretary and the project developer to secure their 
     respective loan and equity contributions; and
       (iii) loan repayment terms generally consistent with 
     financial terms available to project developers in the United 
     States power generation industry.
       (B) The general terms and conditions under which loan 
     guarantees will be provided, which shall be consistent with 
     section --0483(c).
       (C) The procedures by which project owners and project 
     developers may request such financial assistance.
       (D) A process under which the Climate Technology Financing 
     Board, the joint venture partnership, and the project 
     developer shall negotiate commercially reasonable terms 
     consistent with terms generally available in the United 
     States power generation industry regarding cost, construction 
     schedule, and other conditions under which the project 
     developer shall acquire the loan from the joint venture 
     partnership and repay the secured loan and acquire an 
     undivided interest in the eligible project when the project 
     achieves commercial operation. Terms prescribed under this 
     subparagraph shall include--
       (i) a defined right of the joint venture partnership to 
     terminate the loan agreement upon a date certain for project 
     delays that are not the fault of the project developer; and
       (ii) may not refer to the Federal Acquisition Regulations.
       (E) Provisions to retain independent third-party 
     engineering assistance, satisfactory to the Climate 
     Technology Financing Board, the project developer, and the 
     joint venture partnership, to verify and validate 
     construction costs and construction schedules, to monitor 
     construction, and authorize draws on financing during 
     construction to ensure that construction is consistent with 
     generally accepted utility practice, and to make 
     recommendations as to the cause of delay or cost increases 
     should such delays or cost increases occur.
       (F) Provisions to ensure--
       (i) continued project development and construction in the 
     event of a delay to achieving commercial operation caused by 
     an event outside the control of the joint development 
     partners and the project developer; and
       (ii) continued project operations in the event the sale of 
     the eligible project to the project developer is not executed 
     due to an event outside the control of the project developer.
       (G) Any other information necessary for the Secretary of 
     Energy to discharge fully the obligation conferred under this 
     subtitle, including a process for negotiating the terms and 
     conditions of such financial assistance.
       (d) Comprehensive Implementation Plan.--Not later than 12 
     months after the date of enactment of this Act, the Climate 
     Technology Financing Board shall prepare and transmit to the 
     President and Congress a comprehensive plan for 
     implementation of this subtitle.
       (e) Progress Reports.--Not later than 12 months after the 
     comprehensive plan required by subsection (d) and annually 
     thereafter the Secretary shall prepare and transmit to the 
     President and the Congress a report summarizing progress in 
     satisfying the requirements established by the subtitle.

     SEC. 482. RESPONSIBILITIES OF THE SECRETARY.

       (a) Financial Assistance.--Subject to the requirements of 
     the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), 
     the Secretary, in coordination with the Corporation, may make 
     available to joint venture partnerships for eligible project 
     costs such Federal financial assistance as the Climate 
     Technology Financing Board determines is necessary to enable 
     access to, or to supplement, private sector financing for 
     projects if the Board determines that such projects are 
     needed to reduce greenhouse gas emissions, contribute to 
     energy security, fuel or technology diversity, or clean air 
     attainment goals. The Secretary, in coordination with the 
     Corporation, shall prescribe such terms and conditions for 
     financial assistance as the Secretary deems necessary or 
     appropriate to protect the financial interests of the United 
     States.
       (b) Requirements.--Approval criteria for financial 
     assistance under subsection (a) shall include--
       (1) the creditworthiness of the project;
       (2) the extent to which Federal financial assistance would 
     encourage public-private partnerships, attract private-sector 
     investment, and demonstrate safe and secure electric 
     generation or fuel production technology;
       (3) the likelihood that Federal financial assistance would 
     hasten commencement of the project;
       (4) in the case of a nuclear power plant, whether the 
     project developer provides reasonable assurance to the 
     Secretary that the project developer can successfully manage 
     nuclear power plant operations;
       (5) the extent to which the project will demonstrate safe 
     and secure reduced or zero greenhouse gas emitting electric 
     generating or fuel production technology; and
       (6) any other criteria the Secretary deems necessary or 
     appropriate.
       (c) Reserve Amount.--Before entering into any agreements 
     under this subtitle, the Secretary, in consultation with the 
     Director of the Office of Management and Budget, shall 
     determine an appropriate capital reserve subsidy amount for 
     any loan or loan guarantee provided by the agreement. The 
     Secretary, in consultation with the project developer, shall 
     determine the appropriate type of Federal financial 
     assistance to be provided for eligible projects.
       (d) Confidentiality.--The Secretary and the Corporation 
     shall protect the confidentiality of any information that is 
     certified by a project developer to be commercially 
     sensitive.
       (e) Full Faith and Credit.--All loans or loan guarantees 
     provided by the Secretary under this subtitle shall be 
     general obligations of the United States backed by the full 
     faith and credit of the United States.

     SEC. 483. LIMITATIONS.

       (a) Secured Loans.--
       (1) In general.--The financial assistance provided by this 
     subtitle for secured loans or loan guarantees--
       (A) shall be available for new low or zero greenhouse gas 
     emitting energy generating or fuel production facilities, 
     including--
       (i) no more than 3 integrated gasification combined cycle 
     coal power plants with carbon capture and geological storage 
     of greenhouse gases;
       (ii) no more than the first of each of the 3 advanced 
     reactor design projects for which applications for combined 
     construction and operating licenses have been filed on or 
     before December 31, 2015;
       (iii) no more than 3 large scale biofuels production 
     facilities that encourage a diversity of pioneer projects 
     relying on different feedstocks in different regions of the 
     country and maximizing the use of cellulosic biomass; and
       (iv) no more than 3 large scale solar facilities of greater 
     than 5 megawatts capacity which begin operation after 
     December 31, 2005, and before January 1, 2011; and
       (B) may not exceed 80 percent of eligible project costs for 
     each project.
       (2) Government-caused delays.--Paragraph (1)(B) of this 
     subsection does not apply if--
       (A) with respect to a nuclear power plant--
       (i) the conditions specified in the construction and 
     operation license issued by the Nuclear Regulatory Commission 
     change; and
       (ii) the changed conditions result in project delays or 
     changes in project scope after the start of construction that 
     are not attributable to private sector project management, 
     construction, or variances from the Nuclear Regulatory 
     Commission's approved design criteria or safety requirements; 
     or
       (B) with respect to an advanced coal power plant, biofuels 
     production facility, solar power facility, or other eligible 
     facility--
       (i) the conditions specified in the construction permit 
     change; and
       (ii) the changed conditions result in project delays or 
     changes in project scope after the start of construction that 
     are not attributable to private sector project management, 
     construction, or variances from the approved design criteria 
     or safety requirements.
       (3) Additional assistance.--If paragraph (1)(B) of this 
     subsection does not apply for reasons described in paragraph 
     (2), then the financial assistance payable to the project 
     developer shall include additional capital costs, costs of 
     project oversight, lost replacement power, and calculated 
     interest, as determined appropriate by the Secretary of 
     Energy.
       (b) Loan Repayment Terms.--
       (1) The repayment terms for non-recourse secured loans made 
     under this subtitle shall be negotiated among the Climate 
     Technology Financing Board, the joint venture partnership, 
     and the project developer prior to issuance of the loan and 
     commencement of construction.
       (2) The project developer shall purchase the joint venture 
     partnership's interest in the project after the start of the 
     eligible project's commercial operation pursuant to the 
     conditions of the loan with the proceeds of refinancing from 
     non-Federal funding sources.
       (3) The value of the joint venture partnership's interest 
     in the eligible project shall be determined in negotiations 
     prior to issuance of a secured loan under the subtitle.
       (4) The interest rate on loans made under this subtitle 
     shall not be less than the yield on United States Treasury 
     securities of a similar maturity to the maturity of the loan

[[Page S6973]]

     on the date of execution of the loan agreement.
       (5) A secured loan for an eligible project under this 
     subtitle shall be non-recourse to the joint venture 
     partnership in the event of bankruptcy, insolvency, 
     liquidation, or failure of the project to start commercial 
     operation when the project is ready for commercial operation.
       (c) Loan Guarantee Terms.--
       (1) In general.--A loan guarantee shall apply only when a 
     project developer defaults on a loan solely as a result of 
     the regulatory actions, directly applied to the project, of a 
     State, Federal or local government.
       (2) Limitation.--Nothing in this subsection shall obligate 
     the Corporation or Secretary to provide payments in the event 
     of a default that results from a project developer's 
     malfeasance, misfeasance, or mismanagement of the 
     construction or operation of the project, or from conduct or 
     circumstances unrelated to the regulatory actions of any 
     governmental entity.
       (3) Escrow.--The corporation shall hold in escrow the 
     amounts necessary for payments in the event of a default by 
     the project developer in accordance with the terms of this 
     subsection.

     SEC. 484. SOURCE OF FUNDING FOR PROGRAMS.

       Notwithstanding any other provision of law, or any other 
     provision of this division, authorizing or appropriating 
     funds to carry out the provisions of this division, no funds 
     may be made available to carry out any activity under this 
     subtitle except proceeds from the auction authorized by 
     section --0333(g) of this division, subject to the limitation 
     in section --0333(g)(3).


                         part iii--definitions

     SEC. 486. DEFINITIONS.

       In this subtitle:
       (1) Advanced reactor design.--The term ``advanced reactor 
     design'' means any reactor design approved and certified by 
     the Nuclear Regulatory Commission.
       (2) Cellulosic ethanol.--The term ``cellulosic ethanol'' 
     means ethanol produced from fibrous or woody plant materials.
       (3) Commercial operation.--
       (A) Nuclear power facility.--With respect to a nuclear 
     power plant, the term ``commercial operation'' means the 
     date--
       (i) on which a new nuclear power plant has received a full 
     power 40-year operating license from the Nuclear Regulatory 
     Commission; and
       (ii) by which all Federal, State, and local appeals and 
     legal challenges to such operating license have become final.
       (B) Advanced coal power plants.--With respect to an 
     advanced coal power plant, the term ``commercial operation'' 
     means the date--
       (i) on which a new power plant has received a full power 
     rating; and
       (ii) by which all Federal, State, and local appeals and 
     legal challenges to the operating license for the power plant 
     have become final.
       (4) Corporation.--The term ``Corporation'' means the 
     Climate Change Credit Corporation.
       (5) Eligible project.--The term ``eligible project'' 
     means--
       (A) any commercial nuclear power facility for the 
     production of electricity that uses one or more advanced 
     reactor designs;
       (B) any advanced coal power plant utilizing the integrated 
     gasification combined cycle technology with carbon capture 
     and geological storage of greenhouse gases;
       (C) any biofuels production facility which uses cellulosic 
     feedstock; or
       (D) any power facility which uses solar energy for the 
     production of more than 75 percent of its annual output, 
     which output capacity shall not be less than 10 megawatts as 
     determined by common engineering practice.
       (6) Eligible project costs.--The term ``eligible project 
     costs'' means all costs related to the development and 
     construction of an eligible project under this subtitle, 
     including, without limitation, the cost of--
       (A) development phase activities, including site 
     acquisition and related real property agreements, 
     environmental reviews, licensing and permitting, engineering 
     and design work, off-taker agreements and arrangements, and 
     other preconstruction activities;
       (B) fabrication and acquisition of equipment, project 
     construction activities and construction contingencies, 
     project overheads, project management costs, and labor and 
     engineering costs incurred during construction;
       (C) capitalized interest necessary to meet market 
     requirements, reasonably required reserve funds, capital 
     issuance expenses, and other carrying costs during 
     construction; and
       (D) any other costs that the Climate Technology Financing 
     Board deems reasonable and appropriate as eligible project 
     costs.
       (7) Federal financial assistance.--The term ``Federal 
     financial assistance'' means project construction financing 
     of up to 80 percent of a project's eligible project costs in 
     the form of a non-recourse secured loan or loan guarantee.
       (8) First-of-a-kind engineering costs.--The term ``first-
     of-a-kind engineering costs'' means the extra costs 
     associated with the first units of a design category for 
     engineering work that develops the design details that finish 
     plant standardization up to a complete plant design and that 
     can be reused for building subsequent units.
       (9) Joint venture partnership.--The term ``joint venture 
     partnership'' means a special purpose entity, including 
     corporations, partnerships, or other legal entities 
     established to develop, construct, and finance an eligible 
     project and to receive financing proceeds in the form of non-
     recourse secured loans provided by the Secretary and private 
     equity provided by project developers.
       (10) Loan.--The term ``loan'' means a direct non-recourse 
     loan issued to a joint venture partnership engaged in 
     developing an eligible project and funded by the Secretary 
     under this subtitle, which is subject to repayment by the 
     joint venture partnership under terms and conditions to be 
     negotiated among the project developer, joint venture 
     partnership, and the Secretary before the start of 
     construction on the project.
       (11) Loan guarantee.--The term ``loan guarantee'' means any 
     guarantee or other pledge by the Secretary to pay all or part 
     of the principle and interest on a loan or other debt 
     obligation issued by a project developer related to its 
     equity investment and funded by a lender.
       (12) Project developer.--The term ``project developer'' 
     means a corporation, partnership, or limited liability 
     company that--
       (A) provides reasonable assurance to the Secretary that the 
     project developer can successfully manage plant operations;
       (B) has the financial capability to contribute 20 percent 
     equity to the development of the project; and
       (C) upon commercial operation, will purchase the project 
     from the joint venture partnership.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (14) Subsidy amount.--The term ``subsidy amount'' means the 
     amount of budget authority sufficient to cover the estimated 
     long-term cost to the Federal government of a loan, 
     calculated on a net present value basis, excluding 
     administrative costs and any incidental effects on 
     governmental receipts or outlays, in accordance with the 
     provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661 et seq.).

        Subtitle D--Reverse Auction for Technology Dissemination

     SEC. 491. CLIMATE TECHNOLOGY CHALLENGE PROGRAM.

       (a) In General.--The Secretary of Energy, in coordination 
     with the Climate Change Credit Corporation, shall develop and 
     carry out a program in fiscal years 2006 through 2009, to be 
     known as the ``Climate Technology Challenge Program''. The 
     Secretary shall award funding through the program to 
     stimulate innovation in development, demonstration, and 
     deployment of technologies that have the greatest potential 
     for reducing greenhouse gas emissions. The program shall be 
     conducted as follows:
       (1) The Secretary shall post a request for zero or low 
     greenhouse gas energy services or products along with a 
     suggested level of funding for each competition.
       (2) The Secretary shall award the funding to the lowest 
     bidder in each competition who meets all other qualifications 
     in a form of a production incentive to supply--
       (A) the requested services for a specified period of time; 
     or
       (B) the requested product within a specified period of 
     time.
       (b) Funding.--
       (1) Source.--Notwithstanding any other provision of law, or 
     any other provision of this division, authorizing or 
     appropriating funds to carry out the provisions of this 
     division, no funds may be made available to carry out any 
     activity under this subtitle except proceeds from the auction 
     authorized by section --0333(g) of this division, subject to 
     the limitation in section --0333(g)(3).
       (2) Operating funds.--Beginning with fiscal year 2010, the 
     Climate Change Credit Corporation shall administer the 
     Climate Technology Challenge Program using funds generated 
     under section --0352 of this division.
       (c) Program Requirements.--
       (1) Competitive process.--Recipients of awards under the 
     program shall be selected through competitions conducted by 
     the Secretary.
       (2) Advertisement of competitions.--The Secretary shall 
     widely advertise any competitions conducted under the 
     program.
       (3) Categories of competitions.--The Secretary shall 
     conduct separate competitions in the following areas of 
     energy and fuel production and services:
       (A) Advanced coal (including integrated gasification 
     combined cycle) with carbon capture and storage.
       (B) Renewable electricity.
       (C) Energy efficiency (including transportation).
       (D) Advanced technology vehicles.
       (E) Transportation fuels.
       (F) Carbon sequestration and storage.
       (G) Zero and low emissions technologies.
       (H) Adaptation technologies.
       (I) The Secretary may also conduct competition for a 
     general category to stimulate additional, unanticipated 
     advances in technology.
       (4) Evaluations and criteria for competitions.--
       (A) Panel of experts.--The Secretary shall establish a 
     separate panel of experts to evaluate proposals submitted 
     under each competition.
       (B) Competition criteria.--The Secretary, in consultation 
     with other relevant Federal agency heads, shall set minimum 
     criteria, including performance and safety criteria, for each 
     competition. Proposals shall be evaluated on their ability to 
     reduce, avoid, or sequester greenhouse gas emissions at a 
     given price.

[[Page S6974]]

       (C) Full life cycle.--All proposals within a competition 
     shall compete on full life cycle avoided greenhouse gas 
     emissions (as weighted by global warming potential) per 
     dollar of incentive.
       (5) Report of awards.--In 2009 and every 5 years thereafter 
     the Secretary shall issue a report on the awards granted by 
     the program, funding provided, and greenhouse gas emissions 
     avoided or sequestered.
       (6) Program evaluation.--The Secretary, in coordination 
     with the National Academies of Science, shall evaluate the 
     continued necessity of the program and future funding needs 
     after fiscal year 2009. The evaluation shall be submitted 3 
     months before the end of fiscal year 2009 to the Congress and 
     the Climate Change Credit Corporation.
       (7) Review and revision by corporation.--The Climate Change 
     Credit Corporation shall review and revise the awards program 
     every 5 years starting in 2009, issuing new guidelines for 
     the next 5 years of Climate Technology Challenge Program by 
     the end of the fiscal year in which the evaluation in 
     paragraph (6) is reported. The Climate Change Credit 
     Corporation shall assess and adjust the categories of 
     competitions as described in paragraph (3) to ensure new 
     developing technologies that reduce, avoid, or sequester 
     greenhouse gases and are in need of financial assistance for 
     further development and deployment are the focus of the 
     awards program.
       (d) Budgeting and Awarding of Funds.--
       (1) Availability of funds.--Any funds appropriated to carry 
     out this section shall remain available until expended, but 
     for not more than 4 fiscal years.
       (2) Deposit and withdrawal of funds.--When an award is 
     offered, the Secretary shall deposit the total amount of 
     funding made available for that award in the Climate 
     Technology Challenge Trust Fund. If funding expires before an 
     award is granted, the Secretary shall deposit additional 
     funds in the account to ensure the availability of funding 
     for all awards. If an award competition expires before its 
     goals are met, the Secretary may redesignate those funds for 
     a new challenge, but any redesignated funds will be 
     considered as newly deposited for the purposes of paragraph 
     (3). All cash awards made under this section shall be paid 
     from that account.
       (3) Maximum award.--No competition under the program may 
     result in the award of more than $100,000,000 without the 
     approval of the Secretary.
       (4) Post-2010 funding.--Funding for the competitions after 
     fiscal year 2010 shall be taken from the Climate Change 
     Credit Corporation.
       (e) Registration; Assumption of Risk.--
       (1) Registration.--Each potential recipient of an award in 
     a competition under the program under this section shall 
     register for the competition.
       (2) Assumption of risk.--In registering for a competition 
     under paragraph (1), a potential recipient of a prize shall 
     assume any and all risks, and waive claims against the United 
     States Government and its related entities (including 
     contractors and subcontractors at any tier, suppliers, users, 
     customers, cooperating parties, grantees, investigators, and 
     detailees), for any injury, death, damage, or loss of 
     property, revenue, or profits, whether direct, indirect, or 
     consequential, arising from participation in the competition, 
     whether such injury, death, damage, or loss arises through 
     negligence or otherwise, except in the case of willful 
     misconduct.
       (f) Relationship to Other Authority.--The Secretary may 
     exercise the authority in this section in conjunction with or 
     in addition to any other authority of the Secretary to 
     acquire, support, or stimulate basic and applied research, 
     technology development, or prototype demonstration projects 
     that promote reduced greenhouse gas emissions.
                                 ______
                                 
  SA 827. Mr. BINGAMAN (for Mr. Dorgan) submitted an amendment intended 
to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure jobs for 
our future with secure, affordable, and reliable energy; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. EXTENSION OF RENEWABLE ELECTRICITY PRODUCTION CREDIT 
                   THROUGH 2010.

       Paragraphs (1), (2), (3), (5), (6), (7), (9), and (10) of 
     section 45(d) of the Internal Revenue Code of 1986, as 
     amended by title XV, are amended by striking ``2009'' each 
     place it appears and inserting ``2011''.
                                 ______
                                 
  SA 828. Mr. BINGAMAN (for Mr. Dorgan) submitted an amendment intended 
to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure jobs for 
our future with secure, affordable, and reliable energy; which was 
ordered to lie on the table; as follows:

       At the end appropriate place insert the following:

     SEC. __. EXPANSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
                   PROPERTY TO INCLUDE ELECTRIC THERMAL STORAGE 
                   UNIT.

       (a) In General.--Section 25C(b) of the Internal Revenue 
     Code of 1986 (relating to limitation), as added by title XV, 
     is amended--
       (1) by striking ``and'' at the end of paragraph (2),
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``, and'', and
       (3) by adding at the end the following new paragraph:
       ``(4) $250 for any electric thermal storage unit.''.
       (b) Electric Thermal Storage Unit.--Section 25C(c)(2)(A) of 
     such Code, as so added, is amended--
       (1) by striking ``or'' at the end of clause (ii),
       (2) by striking the period at the end of clause (iii) and 
     inserting ``, or'', and
       (3) by adding at the end the following new clause:
       ``(iv) an electric thermal storage unit which converts low-
     cost, off-peak electricity to heat and stores such heat for 
     later use in specially designed ceramic bricks.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2005.
                                 ______
                                 
  SA 829. Mr. BINGAMAN (for Mr. Jeffords) submitted an amendment 
intended to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 746, line 9, insert ``, in consultation with the 
     Administrator of the Environmental Protection Agency,'' after 
     ``Secretary''.
                                 ______
                                 
  SA 830. Mr. BINGAMAN (for Mr. Jeffords) submitted an amendment 
intended to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 732, lines 6 and 7, insert ``, in consultation with 
     the Administrator of the Environmental Protection Agency,'' 
     after ``Administration''.
                                 ______
                                 
  SA 831. Mr. BINGAMAN (for Mr. Jeffords) submitted an amendment 
intended to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 726, line 21, insert ``, in consultation with the 
     Administrator of the Environmental Protection Agency,'' after 
     ``Secretary''.
                                 ______
                                 
  SA 832. Mr. BINGAMAN (for Mr. Jeffords) submitted an amendment 
intended to be proposed by Mr. Bingaman to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 724, line 12, insert before ``shall enter'' the 
     following: ``, in consultation with the Administrator of the 
     Environmental Protection Agency,''.
       On page 726, line 5, insert ``and the Administrator of the 
     Environmental Protection Agency'' after ``Interior''.
       On page 726, line 10, insert before ``shall report'' the 
     following: ``and the Administrator of the Environmental 
     Protection Agency''.
       On page 726, line 14, strike ``Secretary's agreement or 
     disagreement'' and insert ``agreement or disagreement of the 
     Secretary of the Interior and the Administrator of the 
     Environmental Protection Agency''.
                                 ______
                                 
  SA 833. Mr. KOHL (for himself, Mr. DeWine, Mr. Lieberman, Mr. Levin, 
and Mr. Reed) submitted an amendment intended to be proposed by him to 
the bill H.R. 6, to ensure jobs for our future with secure, affordable, 
and reliable energy; which was ordered to lie on the table; as follows:

       On page 53, strike lines 4 through 8 and insert the 
     following:
     Small Business Administration shall make program information 
     available directly to small businesses and through other 
     Federal agencies, including the Federal Emergency Management 
     Agency and the Department of Agriculture, and coordinate 
     assistance with the Secretary of Commerce for manufacturing-
     related efforts, including the Manufacturing Extension 
     Partnership Program.''.
                                 ______
                                 
  SA 834. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 52, line 24, strike ``efficiency; and'' and all 
     that follows through page 53, line 8 and insert the 
     following: ``efficiency;
       ``(C) understanding and accessing Federal procurement 
     opportunities with regard to Energy Star technologies and 
     products; and
       ``(D) identifying financing options for energy efficiency 
     upgrades.
       ``(2) The Secretary, the Administrator of the Environmental 
     Protection Agency, and the Administrator of the Small 
     Business Administration shall make program information 
     available to small business concerns directly through the 
     district offices and resource partners of the Small Business 
     Administration, including small business development centers, 
     women's business centers, and the Service Corps of Retired 
     Executives (SCORE), and through other Federal agencies, 
     including the Federal Emergency Management Agency and the 
     Department of Agriculture.

[[Page S6975]]

       ``(3) The Secretary, on a cost shared basis in cooperation 
     with the Administrator of the Environmental Protection 
     Agency, shall provide to the Small Business Administration 
     all advertising, marketing, and other written materials 
     necessary for the dissemination of information under 
     paragraph (2).
       ``(4) There are authorized to be appropriated in fiscal 
     year 2006, such sums as may be necessary to carry out this 
     subsection, which shall remain available until expended.''.
                                 ______
                                 
  SA 835. Mrs. CLINTON (for herself and Mr. Allard) submitted an 
amendment intended to be proposed by her to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       On page 159, after line 23, add the following:

     SEC. 2__. NATIONAL PRIORITY PROJECT DESIGNATION.

       (a) Designation of National Priority Projects.--
       (1) In general.--There is established the National Priority 
     Project Designation (referred to in this section as the 
     ``Designation''), which shall be evidenced by a medal bearing 
     the inscription ``National Priority Project''.
       (2) Design and materials.--The medal shall be of such 
     design and materials and bear such additional inscriptions as 
     the President may prescribe.
       (b) Making and Presentation of Designation.--
       (1) In general.--The President, on the basis of 
     recommendations made by the Secretary, shall annually 
     designate organizations that have--
       (A) advanced the field of renewable energy technology and 
     contributed to North American energy independence; and
       (B) been certified by the Secretary under subsection (e).
       (2) Presentation.--The President shall designate projects 
     with such ceremonies as the President may prescribe.
       (3) Use of designation.--An organization that receives a 
     Designation under this section may publicize the Designation 
     of the organization as a National Priority Project in 
     advertising.
       (4) Categories in which the designation may be given.--
     Separate Designations shall be made to qualifying projects in 
     each of the following categories:
       (A) Wind and biomass energy generation projects.
       (B) Photovoltaic and fuel cell energy generation projects.
       (C) Energy efficient building and renewable energy 
     projects.
       (D) First-in-Class projects.
       (c) Selection Criteria.--
       (1) In general.--Certification and selection of the 
     projects to receive the Designation shall be based on 
     criteria established under this subsection.
       (2) Wind, biomass, and building projects.--In the case of a 
     wind, biomass, or building project, the project shall 
     demonstrate that the project will install not less than 30 
     megawatts of renewable energy generation capacity.
       (3) Solar photovoltaic and fuel cell projects.--In the case 
     of a solar photovoltaic or fuel cell project, the project 
     shall demonstrate that the project will install not less than 
     3 megawatts of renewable energy generation capacity.
       (4) Energy efficient building and renewable energy 
     projects.--In the case of an energy efficient building or 
     renewable energy project, in addition to meeting the criteria 
     established under paragraph (2), each building project shall 
     demonstrate that the project will--
       (A) comply with third-party certification standards for 
     high-performance, sustainable buildings;
       (B) use whole-building integration of energy efficiency and 
     environmental performance design and technology, including 
     advanced building controls;
       (C) use renewable energy for at least 50 percent of the 
     energy consumption of the project;
       (D) comply with applicable Energy Star standards; and
       (E) include at least 5,000,000 square feet of enclosed 
     space.
       (5) First-in-class use.--Notwithstanding paragraphs (2) 
     through (4), a new building project may qualify under this 
     section if the Secretary determines that the project--
       (A) represents a First-In-Class use of renewable energy; or
       (B) otherwise establishes a new paradigm of building 
     integrated renewable energy use or energy efficiency.
       (d) Application.--
       (1) Initial applications.--No later than 120 days after the 
     date of enactment of this Act, and annually thereafter, the 
     Secretary shall publish in the Federal Register an invitation 
     and guidelines for submitting applications, consistent with 
     this section.
       (2) Contents.--The application shall describe the project, 
     or planned project, and the plans to meet the criteria 
     established under subsection (c).
       (e) Certification.--
       (1) In general.--Not later than 60 days after the 
     application period described in subsection (d), and annually 
     thereafter, the Secretary shall certify projects that are 
     reasonably expected to meet the criteria established under 
     subsection (c).
       (2) Certified projects.--The Secretary shall designate 
     personnel of the Department to work with persons carrying out 
     each certified project and ensure that the personnel--
       (A) provide each certified project with guidance in meeting 
     the criteria established under subsection (c);
       (B) identify programs of the Department, including National 
     Laboratories and Technology Centers, that will assist each 
     project in meeting the criteria established under subsection 
     (c); and
       (C) ensure that knowledge and transfer of the most current 
     technology between the applicable resources of the Federal 
     Government (including the National Laboratories and 
     Technology Centers, the Department, and the Environmental 
     Protection Agency) and the certified projects is being 
     facilitated to accelerate commercialization of work developed 
     through those resources.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2006 through 2010.
                                 ______
                                 
  SA 836. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 346, between lines 21 and 22, add the following:

                      Subtitle C--Loan Guarantees

     SEC. 421. LOAN GUARANTEES.

       (a) In General.--Subject to the availability of 
     appropriations, the Secretary may provide loan guarantees for 
     a project to produce energy and clean fuels from Western 
     subbituminous coal using appropriate coal liquefaction 
     technology.
       (b) Requirements.--The project described in subsection (a) 
     shall use coal owned by a State government, in combination 
     with private and Tribal coal resources.
                                 ______
                                 
  SA 837. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 53, line 8, strike the quotation marks and the 
     final period and insert the following:
       ``(3) National center for appropriate technology small 
     business energy clearinghouse.--The Secretary and the 
     Administrator of the Small Business Administration, as a part 
     of the outreach to small business concerns regarding the 
     Energy Star Program required by this subsection, may enter 
     into a cooperative agreement with the National Center for 
     Appropriate Technology to establish, maintain, and promote a 
     Small Business Energy Clearinghouse (in this section referred 
     to as the `Clearinghouse'). The Secretary and the 
     Administrator shall ensure that the Clearinghouse provides a 
     centralized resource where small business concerns may 
     access, telephonically and electronically, technical 
     information and advice to help increase energy efficiency and 
     reduce energy costs.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subsection, to remain available until 
     expended.''.
                                 ______
                                 
  SA 838. Mr. McCONNELL submitted an amendment intended to be proposed 
by him to the bill H.R. 6, to ensure jobs for our future with secure, 
affordable, and reliable energy; which was ordered to lie on the table; 
as follows:

       On page 656, between lines 19 and 20, insert the following:

     SEC. 1237. KENTUCKY PILOT PROGRAM.

       (a) Equitability Within Territory Restricted Electric 
     Systems.--Section 212(j) of the Federal Power Act (16 U.S.C. 
     824k(j)) is amended--
       (1) by striking ``October 1, 1991'' and inserting ``April 
     1, 2005''; and
       (2) by striking the period at the end and inserting ``: 
     Provided further, That this subsection shall not apply in the 
     Commonwealth of Kentucky.''.
       (b) Study and Report.--
       (1) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study of the costs, benefits, and 
     other effects of the amendment made by this section, 
     including differing costs to electricity consumers in the 
     Commonwealth of Kentucky.
       (B) Inclusion.--In conducting the study under subparagraph 
     (A), the Comptroller General shall evaluate the potential 
     costs and benefits of granting the Federal Energy Regulatory 
     Commission jurisdiction over the entire Tennessee Valley 
     Authority grid with respect to sales and purchases of 
     electricity by the Tennessee Valley Authority.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report describing the findings of the study 
     under paragraph (1).
                                 ______
                                 
  SA 839. Mr. LAUTENBERG (for himself, Mr. Reid, Mr. Lieberman, and Mr. 
Jeffords) submitted an amendment intended to be proposed by him to the 
bill H.R. 6, to ensure jobs for our future

[[Page S6976]]

with secure, affordable, and reliable energy; as follows:

       At the appropriate place, insert the following:

                   TITLE      --SAVE CLIMATE SCIENCE

     SEC. --01. SHORT TITLE.

       This title may be cited as the ``Save Climate Scientific 
     Credibility, Integrity, Ethics, Nonpartisanship, Consistency, 
     and Excellence Act'' or the ``Save Climate SCIENCE Act''.

     SEC. --02. FINDINGS.

       The Congress finds the following:
       (1) Federal climate-related reports and studies that 
     summarize or synthesize science that was rigorously peer-
     reviewed and that cost taxpayers millions of dollars, were 
     altered to misrepresent or omit information contained in the 
     underlying scientific reports or studies.
       (2) Reports of such alterations were exposed by scientists 
     who were involved in the preparation of the underlying 
     scientific reports or studies.
       (3) Such alteration of Federal climate-related reports and 
     studies raises questions about the credibility, integrity, 
     and consistency of the United States climate science program.

     SEC. --03. PUBLICATION REQUIREMENT.

       (a) In General.--Within 48 hours after an executive agency 
     (as defined in section 105 of title 5, United States Code) 
     publishes a summary, synthesis, or analysis of a scientific 
     study or report on climate change that has been modified to 
     reflect comments by the Executive Office of the President 
     that change the force, meaning, emphasis, conclusions, 
     findings, or recommendations of the scientific or technical 
     component of the study or report, the head of that agency 
     shall make available on a departmental or agency website, and 
     on a public docket, if any, that is accessible by the public 
     both the final version and the last draft version before it 
     was modified to reflect those comments.
       (b) Format and Ease of Comparison.--The documents shall be 
     made available--
       (1) in a format that is generally available to the public; 
     and
       (2) in the same format and accessible on the same page with 
     equal prominence, or in any other manner that facilitates 
     comparison of the 2 texts.

     SEC. --04. ENFORCEMENT.

       The failure, by the head of an executive agency, to comply 
     with the requirements of section --02 shall be considered a 
     failure to file a report required by section 102 of the 
     Ethics in Government Act of 1978 (5 U.S.C. App. ).

     SEC. --05. ANNUAL REPORT BY COMPTROLLER GENERAL.

       The Comptroller General shall transmit to the Congress 
     within 1 year after the date of enactment of this Act, and 
     annually thereafter, a report on compliance with the 
     requirements of section --02 by executive agencies that 
     includes a information on the status of any enforcement 
     actions brought under section 104 of the Ethics in Government 
     Act of 1978 (5 U.S.C. App. ) for violations of section --02 
     of this Act during the 12-month period covered by the report.

     SEC. --06. WHISTLEBLOWER EXTENSION FOR DISCLOSURES RELATING 
                   TO INTERFERENCE WITH CLIMATE SCIENCE.

       (a) In General.--Subparagraphs (A) and (B) of section 
     2302(b)(8) of title 5, United States Code, are amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by adding ``or'' at the end; and
       (3) by inserting after clause (ii) the following:
       ``(iii) tampering with the conduct of Federally funded 
     climate-related scientific research or analysis, altering or 
     omitting the findings of Federally funded climate-related 
     scientific research or analysis, or directing the 
     dissemination of climate-related scientific information known 
     by the directing employee to be false or misleading,''.
       (b) Conforming Amendments.--
       (1) Section 1212(a)(3) of title 5, United States Code, is 
     amended--
       (A) by striking ``regulation, or gross'' and inserting 
     ``regulation; gross''; and
       (B) by adding at the end the following: ``or tampering with 
     the conduct of Federally funded climate-related scientific 
     research or analysis, altering or omitting the findings of 
     Federally funded climate-related scientific research or 
     analysis, or directing the dissemination of climate-related 
     scientific information known by the directing employee to be 
     false or misleading;''
       (2) Section 1213(a) of such title is amended--
       (A) in paragraph (1)--
       (i) by striking ``or'' at the end of subparagraph (A);
       (ii) by inserting ``or'' at the end of subparagraph (B); 
     and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) tampering with the conduct of Federally funded 
     climate-related scientific research or analysis, altering or 
     omitting the findings of Federally funded climate-related 
     scientific research or analysis, or directing the 
     dissemination of climate-related scientific information known 
     by the directing employee to be false or misleading;''; and
       (B) in paragraph (2)--
       (i) by striking ``or'' at the end of subparagraph (A);
       (ii) by striking ``safety.'' in subparagraph (B) and 
     inserting ``safety; or''; and
       (C) by inserting after subparagraph (B) the following:
       ``(C) tampering with the conduct of Federally funded 
     climate-related scientific research or analysis, altering or 
     omitting the findings of Federally funded climate-related 
     scientific research or analysis, or directing the 
     dissemination of climate-related scientific information known 
     by the directing employee to be false or misleading.''.
                                 ______
                                 
  SA 840. Mr. SMITH (for himself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by him to the bill H.R. 6, to ensure 
jobs for our future with secure, affordable, and reliable energy; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. TAX INCENTIVES FOR TRUCKS WITH NEW DIESEL ENGINE 
                   TECHNOLOGIES.

       (a) Investment Credit for Trucks With New Diesel 
     Technology.--
       (1) In general.--
       (A) Allowance of credit.--Subpart E of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986, as amended by this Act, is amended by inserting after 
     section 48 the following new section:

     ``SEC. 48E. NEW DIESEL TECHNOLOGY CREDIT.

       ``(a) General Rule.--For purposes of section 46, the new 
     diesel technology credit for any taxable year is 5 percent of 
     the cost of any qualified truck which is placed in service on 
     or after January 1, 2007, and before January 1, 2008.
       ``(b) Qualified Truck.--For purposes of this section, the 
     term `qualified truck' means any motor vehicle (as defined in 
     section 30(c)(2)) which--
       ``(1) is first placed in service on or after January 1, 
     2007,
       ``(2) is propelled by diesel fuel,
       ``(3) has a gross vehicle weight rating of more than 33,000 
     pounds, and
       ``(4) complies with the regulations of the Environmental 
     Protection Agency with respect to diesel emissions for model 
     year 2007 and later.''.
       (B) Credit treated as part of investment credit.--Section 
     46 of such Code, as amended by this Act, is amended by 
     striking ``and'' at the end of paragraph (5), by striking the 
     period at the end of paragraph (6) and inserting ``, and'', 
     and by adding at the end the following new paragraph:
       ``(7) the new diesel technology credit.''.
       (C) Conforming amendments.--
       (i) Section 49(a)(1)(C) of such Code, as amended by this 
     Act, 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) the basis of any qualified truck.''.
       (ii) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 48 the following new item:

              ``Sec. 48E. New diesel technology credit.''.

       (2) Credit allowed against amt.--
       (A) In general.--Subsection (c) of section 38 of such Code 
     is amended by redesignating paragraph (5) as paragraph (6) 
     and by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Special rules for new diesel technology credit.--
       ``(A) In general.--In the case of the new diesel technology 
     credit--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credit, and
       ``(ii) in applying paragraph (1) to such credit--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the new 
     diesel technology credit).

       ``(B) New diesel technology credit.--For purposes of this 
     subsection, the term `new diesel technology credit' means the 
     portion of the investment credit under section 46 determined 
     under section 48E.''.
       (B) Conforming amendments.--Paragraphs (2)(A)(ii)(II), 
     (3)(A)(ii)(II), and (4)(A)(ii)(II) of section 38(c) of such 
     Code are each amended by inserting ``or the new diesel 
     technology credit'' after ``the specified credits''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to periods after December 31, 2006, 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).
       (b) Election to Expense Qualified Trucks.--
       (1) In general.--Part VI of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986, as amended by this Act, is 
     amended by inserting after section 179B the following new 
     section:

     ``SEC. 179E. ELECTION TO EXPENSE NEW DIESEL TECHNOLOGY 
                   TRUCKS.

       ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
     the cost of any qualified truck (as defined in section 48E) 
     as an expense which is not chargeable to a capital account. 
     Any cost so treated shall be allowed as a deduction for the 
     taxable year in which the qualified truck is placed in 
     service.

[[Page S6977]]

       ``(b) Election.--
       ``(1) In general.--An election under this section for any 
     taxable year shall be made on the taxpayer's return of the 
     tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(2) Election irrevocable.--Any election made under this 
     section may not be revoked except with the consent of the 
     Secretary.
       ``(c) Termination.--This section shall not apply to 
     property placed in service after December 31, 2007.''.
       (2) Conforming amendment.--The table of sections for part 
     VI of subchapter B of chapter 1 of such Code, as amended by 
     this Act, is amended by inserting after the item relating to 
     section 179D the following new item:

   ``Sec. 179E. Election to expense new diesel technology trucks.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service on or after January 
     1, 2007.

                          ____________________