[Congressional Record (Bound Edition), Volume 147 (2001), Part 11]
[House]
[Pages 15450-15476]
[From the U.S. Government Publishing Office, www.gpo.gov]



       Subsection 2142(b) requires the Secretary, no later than 
     three months after the date of enactment of this Act, to 
     establish and publish in the Federal Register grant 
     requirements on eligibility for assistance, and on 
     implementation of the program established under subsection 
     (a), including certification requirements to ensure 
     compliance with this subtitle.
       Subsection 2142(c) requires the Secretary, no later than 
     six months after the date of enactment of this Act, to 
     solicit proposals for grants under this section.
       Subsection 2142(d) requires that a grant be awarded, under 
     this section only, to a local governmental entity responsible 
     for providing school bus service for one or more public 
     school systems or, jointly with a contracting entity that 
     provides school bus service to the public school system or 
     systems.
       Subsection 2142(e) requires that grants under this section 
     shall be for the demonstration and commercial application of 
     technologies to facilitate the use of alternative fuel school 
     buses and ultra-low sulfur diesel school buses in lieu of 
     buses manufactured before model year 1977 and diesel-powered 
     buses manufactured before model year 1991. Other than the 
     receipt of the grant, a recipient of a grant under this 
     section may not receive any economic benefit in connection 
     with the receipt of the grant. When awarding grants, the 
     Secretary shall give priority to applicants who can 
     demonstrate the use of alternative fuel buses and ultra-low 
     sulfur diesel school buses in lieu of buses manufactured 
     before model year 1977.
       Subsection 2142(f) requires that a grant provided under 
     this section shall include the following conditions:
       (1) all buses acquired with funds provided under the grant 
     shall be operated as part of the school bus fleet for which 
     the grant was made for a minimum of five years;
       (2) funds provided under the grant may only be used to pay 
     the cost, except as provided in the following paragraph (3), 
     of new alternative fuel school buses or ultra-low sulfur 
     diesel school buses, including State taxes and contract fees 
     to provide-
       (i) up to 10 percent of the price of the alternative fuel 
     school buses acquired, for necessary alternative fuel 
     infrastructure if the

[[Page 15451]]

     infrastructure will only be available to the grant recipient; 
     and
       (ii) up to 15 percent of the price of the alternative fuel 
     school buses acquired, for necessary alternative fuel 
     infrastructure if the infrastructure will be available to the 
     grant recipient and to other bus fleets;
       (3) the grant recipient shall be required to provide at 
     least the lesser of 15 percent of the total cost of each bus 
     received or $15,000 per bus;
       (4) in the case of a grant recipient receiving a grant to 
     demonstrate ultra-low sulfur diesel school buses, the grant 
     recipient shall be required to provide documentation to the 
     satisfaction of the Secretary that diesel fuel containing 
     sulfur at not more than 15 parts per million (PPM) is 
     available for carrying out the purposes of the grant, and a 
     commitment by the applicant to use such fuel in carrying out 
     the purposes of the grant.
       Subsection 2142(g) requires that funding under a grant made 
     under this section may be used to demonstrate the use only of 
     new alternative fuel school buses or ultra-low sulfur diesel 
     school buses:
       (1) with a gross vehicle weight of greater than 14,000 
     pounds;
       (2) that are powered by a heavy duty engine;
       (3) that, in the case of alternative fuel school buses, 
     emit not more than--
       (A) 2.5 grains per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grains per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2001 and 2002; and
       (B) 1.8 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grains per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2003 through 2006; and
       (4) that, in the case of ultra-low sulfur diesel school 
     buses, emit not more than--
       (A) 3.0 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grams per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2001 through 2003; and
       (B) 2.5 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen and 0.01 grams per brake 
     horsepower-hour of particulate matter for buses manufactured 
     in model years 2004 through 2006, except that under no 
     circumstances shall buses be acquired under this section that 
     emit non-methane hydrocarbons, oxides of nitrogen, or 
     particulate matter at a rate greater than the best performing 
     technology of ultra-low sulfur diesel school buses 
     commercially available at the time the grant is made.
       Subsection 2142(h) requires the Secretary, to the maximum 
     extent practicable, to achieve nationwide deployment of 
     alternative fuel school buses through the program under this 
     section, and to ensure a broad geographic distribution of 
     grant awards, with a goal of no State receiving more than 10 
     percent of the grant funding made available under this 
     section for a fiscal year.
       Subsection 2142(i) requires the Secretary to provide not 
     less than 20 percent and not more than 25 percent of the 
     grant funding made available under this section for any 
     fiscal year for the acquisition of ultra-low sulfur diesel 
     school buses.
       Subsection 2142(j) defines the term ``alternative fuel 
     school bus'' to mean a bus powered substantially by 
     electricity (including electricity supplied by a fuel cell), 
     or by liquefied natural gas, compressed natural gas, 
     liquefied petroleum gas, hydrogen, propane, or methanol or 
     ethanol at no less than 85 percent by volume. It also defines 
     the term ``Ultra-low sulfur diesel school bus'' to mean a 
     school bus powered by diesel fuel which contains not more 
     than 15 PPM sulfur.
     Sec. 2143. Fuel Cell Development and Demonstration Program
       Subsection 2143(a) requires the Secretary to establish a 
     program for entering into cooperative agreements with 
     private-sector fuel cell bus developers for the development 
     of fuel-cell-powered school buses, and subsequently with not 
     less than two units of local government using natural-gas-
     powered school buses and such private sector fuel cell bus 
     developers to demonstrate the use of fuel-cell-powered school 
     buses.
       Subsection 2143(b) requires the non-Federal contribution 
     for activities funded under this section to be no less than 
     20 percent for fuel infrastructure development activities and 
     no less than 50 percent for demonstration activities and for 
     non-fuel infrastructure development activities.
       Subsection 2143(c) limits the amount authorized under 
     section 2144 that may be used for carrying out this section 
     for the period encompassing FY 2002 through FY 2006 to no 
     more than $25.0 million.
       Subsection 2143(d) requires the Secretary, no later than 
     three years after the date of enactment of this Act, and, 
     again, no later than October 1, 2006, to transmit to Congress 
     a report that evaluates the process of converting natural gas 
     infrastructure to accommodate fuel-cell-powered school buses 
     and assesses the results of the development and demonstration 
     program under this section.
     Sec. 2144. Authorization of Appropriations
       Section 2144 authorizes $40.0 million for FY 2002, $50.0 
     million for FY 2003, $60.0 million for FY 2004, $70.0 million 
     for FY 2005, and $80.0 million for FY 2006, to remain 
     available until expended, to carry out this subtitle.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                  Subtitle E--Next Generation Lighting

     Sec. 2151. Short Title
       Section 2151 cites the subtitle as ``Next Generation 
     Lighting Initiative Act.''
     Sec. 2152. Definition
       Section 2152 defines the term ``Lighting Initiative'' to 
     mean the ``Next Generation Lighting Initiative'' established 
     under subsection 2153(a).
     Sec. 2153. Next Generation Lighting Initiative
       Subsection 2153(a) authorizes the Secretary to establish a 
     Lighting Initiative to be known as the ``Next Generation 
     Lighting Initiative'' to research, develop, and conduct 
     demonstration activities on advanced lighting technologies, 
     including white light emitting diodes.
       Subsection 2153(b) states the research objectives of the 
     Lighting Initiative to develop, by 2011, advanced lighting 
     technologies that, compared to incandescent and fluorescent 
     lighting technologies as of the date of the enactment of this 
     Act, are longer lasting, more energy-efficient and cost-
     competitive.
     Sec. 2154. Study
       Subsection 2154(a) requires the Secretary, in consultation 
     with other Federal agencies, as appropriate, no later than 
     six months after the date of enactment of this Act, to 
     complete a study on strategies for the development and 
     commercial application of advanced lighting technologies. The 
     Secretary shall request a review by the National Academies of 
     Sciences and Engineering of the study under this subsection, 
     and shall transmit the results of the study to the 
     appropriate congressional committees.
       Subsection 2154(b) requires that the study include the 
     development of a comprehensive strategy to implement the 
     Lighting Initiative and identifying the research and 
     development, manufacturing, deployment, and marketing 
     barriers that must be overcome to achieve a goal of a 25 
     percent market penetration by advanced lighting technologies 
     into the incandescent and fluorescent lighting market by the 
     year 2012.
       Subsection 2154(c) requires the Secretary to modify the 
     implementation of the Lighting Initiative, if necessary, to 
     take into consideration the recommendations of the National 
     Academies of Sciences and Engineering, as soon as practicable 
     after the review of the study under subsection 2154(a) is 
     transmitted to the Secretary by the National Academies of 
     Sciences and Engineering.
     Sec. 2155. Grant Program
       Subsection 2155(a) permits the Secretary to make merit-
     based competitive grants to firms and research organizations 
     that conduct RD&D projects related to advanced lighting 
     technologies, subject to section 2603 of this Act.
       Subsection 2155(b) requires an annual independent review of 
     the grant-related activities of firms and research 
     organizations receiving a grant under this section to be 
     conducted by a committee appointed by the Secretary under the 
     Federal Advisory Committee Act (5 U.S.C. App.), or, at the 
     request of the Secretary, a committee appointed by the 
     National Academies of Sciences and Engineering. Using clearly 
     defined standards established by the Secretary, the review 
     shall assess technology advances and progress toward 
     commercialization of the grant-related activities of firms or 
     research organizations during each fiscal year of the grant 
     program.
       Subsection 2155(c) requires the national laboratories and 
     other Federal agencies, as appropriate, to cooperate with and 
     provide technical and financial assistance to firms and 
     research organizations.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

    Subtitle F--Department of Energy Authorization of Appropriations

     Sec. 2161. Authorization of Appropriations
       Subsection 2161 (a) authorizes $625.0 million for FY 2002, 
     $700.0 million for FY 2003; and (3) $800 million for FY 2004 
     for Energy Conservation operation and maintenance (including 
     Building Technology, State and Community Sector, Industry 
     Sector, Transportation Sector, Power Technologies, and Policy 
     and Management), to remain available until expended. These 
     amount are in addition to: (1) $200.0 million authorized for 
     FY 2002 under section 2105 for alternative fuel and ultra-low 
     sulfur diesel vehicles; (2) $20.0 million for FY 2002 
     authorized under section 2125 for micro-cogeneration energy 
     technology; and (3) $40.0 million for FY 2002, $50.0 million 
     for FY 2003, and $60.0 million for FY 2004 authorized under 
     section 2144 for green school buses.
       Subsection 2161(b) provides that none of the funds 
     authorized to be appropriated in subsection 2131(a) may be 
     used for: ``(1) Building Technology, State and Community 
     Sector--(A) Residential Building Energy Codes; (B) Commercial 
     Building Energy Codes; (C) Lighting and Appliance Standards; 
     (D) Weatherization Assistance Program; (E) State Energy 
     Program; or (2) Federal Energy Management Program.'' These 
     limitations are included to preserve the Science Committee's 
     sole jurisdiction over the bill since

[[Page 15452]]

     the jurisdiction of programs under this subsection 2131(b) 
     either resides with the Committee on Energy and Commerce or 
     is shared with that Committee.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

Subtitle G--Environmental Protection Agency Office of Air and Radiation 
                    Authorization of Appropriations

     Sec. 2171. Short Title
       Section 2171 cites the subtitle as the ``Environmental 
     Protection Agency Office of Air and Radiation Authorization 
     Act of 2001.''
     Sec. 2172. Authorization of Appropriations
       Section 2172 authorizes to be appropriated to the 
     Administrator for the Office of Air and Radiation Climate 
     Change Protection Programs $121.942 million for FY 2002, 
     $126.8 million for FY 2003, and $131.8 million for FY 2004, 
     to remain available until expended, of which:
       (1) $52.731 million for FY 2002, $54.8 million for FY 2003, 
     and $57.0 million for FY 2004 shall be for Buildings;
       (2) $32.441 million for FY 2002, $33.7 million for FY 2003, 
     and $35.0 million for FY 2004 shall be for Transportation;
       (3) $27.295 million FY 2002, $28.4 million for FY 2003, and 
     $29.5 million for FY 2004 shall be for Industry;
       (4) $1.7 million for FY 2002, $1.8 million FY 2003, and 
     $1.9 million for FY 2004 shall be for Carbon Removal;
       (5) $2.5 million for FY 2002, $2.6 million for FY 2003, and 
     $2.7 million for FY 2004 shall be for State and Local 
     Climate; and
       (6) $5.275 million for FY 2002, $5.5 million for FY 2003, 
     and $5.7 million for FY 2004 shall be for International 
     Capacity Building.
     Sec. 2173. Limits on Use of Funds
       Subsection 2173(a) prohibits EPA from using funds to 
     produce or provide articles or services for the purpose of 
     selling the articles or services to a person outside the 
     Federal Government, unless the Administrator determines that 
     comparable articles or services are not available from a 
     commercial source in the United States.
       Subsection 2173(b) prohibits EPA from using funds to 
     prepare or initiate Requests for Proposals for a program if 
     Congress has not authorized the program.
     Sec. 2174. Cost Sharing
       Except as other-wise provided in this subtitle, subsection 
     2174(a) mandates that for R&D programs carried out under this 
     subtitle, the Administrator shall require a commitment from 
     non-Federal sources of at least 20 percent of the cost of the 
     project. The Administrator may reduce or eliminate the non-
     Federal requirement under this subsection if the 
     Administrator determines that the R&D is of a basic or 
     fundamental nature.
       Similarly, under subsection 2174(b) the Administrator shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this subtitle to be provided from 
     non-Federal sources. The Administrator may reduce the non-
     Federal requirement under this subsection if the 
     Administrator determines that the reduction is necessary and 
     appropriate considering the technological risks involved in 
     the project and is necessary to meet the objectives of this 
     subtitle.
       In calculating the amount of the non-Federal commitment 
     under subsection (a) or (b), subsection 2174(c) permits the 
     Administrator to include personnel, services, equipment, and 
     other resources.
     Sec. 2175. Limitations on Demonstrations and Commercial 
         Application of Energy Technology
       Section 2175 requires the Administrator to provide funding 
     only for scientific or energy demonstration or commercial 
     application programs, projects or activities for technologies 
     or processes that can reasonably be expected to yield new, 
     measurable benefits to the cost, efficiency, or performance 
     of the technology or process.
     Sec. 2176. Reprogramming
       Section 2176 prohibits the reprogramming of funds in excess 
     of 105 percent of the amount authorized for a program, 
     project, or activity, or in excess of $0.25 million above the 
     amount authorized for the program, program, project, or 
     activity until the Administrator submits a report to the 
     appropriate congressional committees and a period of 30 days 
     has elapsed after the date on which the report is received. 
     Such reprogramming of funds is limited to no more than the 
     total amount authorized to be appropriated by this subtitle 
     and such funds may not be reprogrammed or used for a program, 
     project, or activity for which Congress has not authorized 
     appropriation.
     Sec. 2177. Budget Request Format
       Section 2177 requires the Administrator to provide to the 
     appropriate congressional committees, to be transmitted at 
     the same time as the EPA's annual budget request submission, 
     a detailed justification for budget authorization for the 
     programs, projects, and activities for which funds are 
     authorized by this subtitle.
       Each such document shall include, for the fiscal year for 
     which funding is being requested and for the two previous 
     fiscal years: (1) a description of, and funding requested or 
     allocated for, each such program, project, or activity; (2) 
     an identification of all recipients of funds to conduct such 
     programs, projects, and activities; and (3) an estimate of 
     the amounts to be expended by each recipient of funds under 
     (2).
     Sec. 2178. Other Provisions
       Subsection 2178(a) requires the Administrator to provide 
     simultaneously to the Committee on Science: (1) any annual 
     operating plan or other operational funding document, 
     including any additions or amendments thereto; and (2) any 
     report relating to the environmental research or development, 
     scientific or energy research, development, or demonstration, 
     or commercial application of energy technology programs, 
     projects, or activities of the EPA, provided to any committee 
     of Congress.
       Subsection 2178(b) requires the Administrator to provide 
     notice to the appropriate congressional committees not later 
     than 15 days before any reorganization of any environmental 
     research or development, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity of the Office 
     of Air and Radiation.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

          Subtitle H--National Building Performance Initiative

       Not later than three months after the date of the enactment 
     of this Act, subsection 2181(a) requires the Director of the 
     OSTP to establish an Interagency Group responsible for the 
     development and implementation of a National Building 
     Performance Initiative to address energy conservation and R&D 
     and related issues. The NIST shall provide necessary 
     administrative support for the Interagency Group.
       Under subsection 2181(b), not later than nine months after 
     the date of the enactment of this Act, the Interagency Group 
     shall transmit to the Congress a multiyear implementation 
     plan describing the Federal role in reducing the costs, 
     including energy costs, of using, owning, and operating 
     commercial, institutional, residential, and industrial 
     buildings by 30 percent by 2020. The plan shall include: (1) 
     RD&D of systems and materials for new construction and 
     retrofit, on the building envelope and components; and (2) 
     the collection and dissemination, in a usable form, of 
     research results and other pertinent information to the 
     design and construction industry, government officials, and 
     the general public.
       Subsection 2181(c) requires the establishment of a National 
     Building Performance Advisory Committee to advise on creation 
     of the plan, review progress made under the plan, advise on 
     any improvements that should be made to the plan, and report 
     to the Congress on actions that have been taken to advance 
     the Nation's capability in furtherance of the plan. The 
     members shall include representatives of a broad cross-
     section of interests such as the research, technology 
     transfer, architectural, engineering, and financial 
     communities; materials and systems suppliers; State, county, 
     and local governments; the residential, multi-family, and 
     commercial sectors of the construction industry; and the 
     insurance industry.
       Subsection 2181(d) requires the Interagency Group, within 
     90 days after the end of each fiscal year, to transmit a 
     report to the Congress describing progress achieved during 
     the preceding fiscal year by goverranent at all levels and by 
     the private sector, toward implementing the plan developed 
     under subsection (b), and including any amendments to the 
     plan.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

     Sec. 2201. Short Title
       Section 2201 cites the subtitle as the ``Robert S. Walker 
     and George E. Brown, Jr. Hydrogen Energy Act of 2001.''
     Sec. 2202. Purposes
       Section 2202 amends section 102(b) the Spark M. Matsunaga 
     Hydrogen RD&D Act of 1990 (1990 Act) to include RD&D 
     activities leading to the use of hydrogen for commercial 
     applications, information dissemination and education, and 
     development of a hydrogen production methodology that 
     minimizes adverse environmental impacts, including efficient 
     and cost-effective production from renewable and nonrenewable 
     resources.
     Sec. 2203. Definitions
       Section 2203 amends section 102(c) of the 1990 Act to 
     include the definition of ``advisory committee.''
     Sec. 2204. Reports to Congress
       Section 2204 amends section 103 of the 1990 Act by 
     requiring the Secretary to submit to Congress a detailed 
     report on the status and progress of the programs and 
     activities authorized under the Act within one year of its 
     enactment, and biennially thereafter.
     Sec. 2205. Hydrogen Research and Development
       Section 2205 amends section 104 of the 1990 Act by 
     streamlining the text. Also, for R&D programs carried out 
     under this section, the Secretary shall require a commitment 
     from nonFederal sources of at least 20 percent of the cost of 
     the project. The Secretary may reduce or eliminate the non-
     Federal requirement under this subsection if the Secretary 
     determines that the R&D is of a basic or fundamental nature.

[[Page 15453]]


     Sec. 2206. Demonstrations
       Section 2206 amends section 105 of the 1990 Act by 
     eliminating the requirement that demonstration of critical 
     technologies and small-scale demonstrations be conducted in 
     or at ``self-contained locations.'' In addition, the small-
     scale demonstrations are to include a fuel cell bus 
     demonstration program to address hydrogen production, 
     storage, and use in transit bus applications.
     Sec. 2207. Technology Transfer
       Section 2207 amends section 106 of the 1990 Act by 
     requiring the Secretary to conduct a hydrogen technology 
     transfer program designed to accelerate wider application of 
     hydrogen production, storage, transportation and use 
     technologies, including application in foreign countries to 
     increase the global market for hydrogen technologies and 
     foster global economic development without harmful 
     environmental effects.
     Sec. 2208. Coordination and Consultation
       Section 2208 amends section 107 of the 1990 Act by 
     requiring the Secretary to establish a central point for 
     coordination of all DOE hydrogen RD&D activities. It also 
     requires the Secretary to consult with other Federal 
     agencies, as appropriate, and the advisory committee 
     established under section 2209.
     Sec. 2209. Advisory Committee
       Section 2209 amends section 108 of the 1990 Act by 
     requiring the Secretary to enter into arrangements with the 
     National Academies of Sciences and Engineering to establish 
     an advisory committee to replace the current Hydrogen 
     Technical Advisory Panel.
     Sec. 2210. Authorization of Appropriations
       Subsection 2210 amends section 109 of the 1990 Act to 
     provide authorization of appropriations for the five-year 
     period, FY 2002 through FY 2006.
       Subsection 2210(a) authorizes $40.0 million for FY 2002, 
     $45.0 million for FY 2003, $50.0 million for FY 2004, $55.0 
     million for FY 2005, and $60.0 million for FY 2006 for 
     hydrogen R&D activities and the advisory committee.
       Subsection 2210(b) authorizes $20.0 million for FY 2002, 
     $25.0 million for FY 2003, $30.0 million for FY 2004, $35.0 
     million for FY 2005, and $40.0 million for FY 2006 for 
     hydrogen demonstration activities.
     Sec. 2211. Repeal
       Section 2211 amends the Hydrogen Future Act of 1996 to 
     repeal title 11 containing the program relating to the 
     integration of fuel cells with hydrogen production systems.

                       TITLE II--RENEWABLE ENERGY

                         Subtitle B--Bioenergy

     Sec. 2221. Short Title
       Section 2221 cites the subtitle as the ``Bioenergy Act of 
     2001.''
     Sec. 2222. Findings
       Section 2222 lists five findings.
     Sec. 2223. Definitions
       Section 2223 defines the terms ``bioenergy,'' ``biofuels,'' 
     ``biopower,'' and ``integrated bioenergy research and 
     development.''
     Sec. 2224. Authorizations
       Section 2224 authorizes the Secretary to conduct bioenergy-
     related RD&D and commercial application programs, projects, 
     and activities, including: (1) biopower energy systems, (2) 
     biofuels energy systems, and (3) integrated bioenergy R&D.
     Sec. 2225. Authorization of Appropriations
       As shown in the following table, subsections 2225(a), 
     2225(b), and 2225(c) authorize a total of $912.2 million for 
     Biopower Energy Systems, Biofuels Energy Systems, and 
     Integrated Bioenergy R&D for the five-year period, FY 2002 
     through FY 2006.

                                                  BIOENERGY ACT OF 2001 AUTHORIZATIONS: FY 2002-FY 2006
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Total  (FY
                  Program (subsection)                        FY 2002         FY 2003         FY 2004         FY 2005         FY 2006     2002- FY 2006)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Biopower (2225(a))......................................          45,700          52,500          60,300          69,300          79,600         307,400
Biofuels (2225(b))......................................          53,500          61,400          70,600          81,100          93,200         359,800
Integrated Bioenergy R&D (2225(c))......................          49,000          49,000          49,000          49,000          49,000         245,000
                                                         -----------------------------------------------------------------------------------------------
      Total.............................................         148,200         162,900         179,900         199,400         221,800         912,200
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Also, Integrated Bioenergy R&D activities funded under 
     subsection 2225(c) are to be coordinated with ongoing related 
     programs of other Federal agencies, including the NSF Plant 
     Genome Program.
       Subsection 2225(d) authorizes amounts under this subtitle 
     to be used to assist in the planning, design, and 
     implementation of projects to convert rice straw and barley 
     grain into biopower or biofuels.

                       TITLE II--RENEWABLE ENERGY

            Subtitle C--Transmission Infrastructure Systems

     Sec. 2241. Transmission Infrastructure Systems RD&D and 
         Commercial Application
       Subsection 2241(a) requires the Secretary to develop and 
     implement a comprehensive RD&D and commercial application 
     program to ensure the reliability, efficiency, and 
     environmental integrity of electrical transmission systems. 
     Such program shall include advanced energy technologies and 
     systems, high capacity superconducting transmission lines and 
     generators, advanced grid reliability and efficiency 
     technologies development, technologies contributing to 
     significant load reductions, advanced metering, load 
     management and control technologies, and technology transfer 
     and education.
       In carrying out this subtitle, subsection 2241(b) allows 
     the Secretary to include RD&D on and commercial application 
     of improved transmission technologies including the 
     integration of the following technologies into improved 
     transmission systems: (1) high temperature superconductivity; 
     (2) advanced transmission materials; (3) self-adjusting 
     equipment, processes, or software for survivability, 
     security, and failure containment; (4) enhancements of energy 
     transfer over existing lines; and (5) any other 
     infrastructure technologies, as appropriate.
     Sec. 2242. Program Plan
       Section 2242 requires the Secretary, within four months 
     after the date of the enactment of this Act and in 
     consultation with other appropriate Federal agencies, to 
     prepare and transmit to Congress a five-year program plan to 
     guide activities under this subtitle. In preparing the 
     program plan, the Secretary shall consult with appropriate 
     representatives of the transmission infrastructure systems 
     industry to select and prioritize appropriate program areas. 
     The Secretary shall also seek the advice of utilities, energy 
     services providers, manufacturers, institutions of higher 
     learning, other appropriate State and local agencies, 
     environmental organizations, professional and technical 
     societies, and any other persons as the Secretary considers 
     appropriate.
     Sec. 2243. Report
       Under section 2243, two years after the date of the 
     enactment of this Act, and at two year intervals thereafter, 
     the Secretary, in consultation with other appropriate Federal 
     agencies, shall transmit a report to Congress describing the 
     progress made to achieve the purposes of this subtitle and 
     identifying any additional resources needed to continue the 
     development and commercial application of transmission 
     infrastructure technologies.

                       TITLE II--RENEWABLE ENERGY

              Subtitle D--Authorization of Appropriations

     Sec. 2261. Authorization of Appropriations
       Including the amounts authorized for hydrogen R&D under 
     section 2210 and for bioenergy R&D under section 2225, 
     subsection 261(a) authorizes $535.0 million for FY 2002, 
     $639.0 million for FY 2003, and $683.0 million for FY 2004 
     for Renewable Energy operation and maintenance, including 
     subtitle C (Transmission Infrastructure Systems), Geothermal 
     Technology Development, Hydropower, Concentrating Solar 
     Power, Photovoltaic Energy Systems, Solar Building Technology 
     Research, Wind Energy Systems, High Temperature 
     Superconducting Research and Development, Energy Storage 
     Systems, Transmission Reliability, International Renewable 
     Energy Program, Renewable Energy Production Incentive 
     Program, Renewable Program Support, National Renewable Energy 
     Laboratory, and Program Direction, to remain available until 
     expended.
       Subsection 2281(b) requires the Secretary to carry out a 
     research program, in conjunction with other appropriate 
     Federal agencies, on wave powered electric generation within 
     the amounts authorized under subsection 2281(a).
       Using funds authorized in subsection 2281(a), subsection 
     2281(c) requires the Secretary to transmit to the Congress, 
     within one year after the date of the enactment of this Act, 
     an assessment of all renewable energy resources available 
     within the United States. The report shall include a detailed 
     inventory describing the available amount and characteristics 
     of solar, wind, biomass, geothermal, hydroelectric, and other 
     renewable energy sources, and an estimate of the costs needed 
     to develop each resource. The report shall also include such 
     other information as the Secretary believes would be useful 
     in siting renewable energy generation, such as appropriate 
     terrain, population and load centers, nearby energy 
     infrastructure, and location of energy resources. The 
     information and cost estimates in this report shall be 
     updated annually and made available to the public, along with 
     the data used to create the report. This subsection shall 
     expire at the end of FY 2004.

[[Page 15454]]

       Subsection 2261(d) provides that none of the funds 
     authorized to be appropriated in subsection 2241(a) may be 
     used for: ``(1) Departmental Energy Management Program; or 
     (2) Renewable Indian Energy Resources.'' These limitations 
     are included to preserve the Science Committee's sole 
     jurisdiction over the bill, since the jurisdiction of these 
     programs either resides with the Committee on Energy and 
     Commerce, or is shared with that Committee.

                       TITLE III--NUCLEAR ENERGY

        Subtitle A--University, Nuclear Science and Engineering

     Sec. 2301. Short Title
       Section 2301 cites the subtitle as the ``Department of 
     Energy University Nuclear Science and Engineering Act.''
     Sec. 2302. Findings
       Section 2302 lists three findings.
     Sec. 2303. Department of Energy Program
       Subsection 2303(a) directs the Secretary, through the 
     Office of Nuclear Energy, Science and Technology (Office) to 
     maintain the Nation's human resource investment and 
     infrastructure related to civilian nuclear R&D.
       Subsection 2303(b) requires the Director of the Office to: 
     (1) develop a robust graduate and undergraduate program to 
     attract new students; (2) develop a Junior Faculty Research 
     Initiation Grant to recruit and maintain new faculty; (3) 
     maintain investment in the Nuclear Engineering Education 
     Research Program; (4) encourage collaborative nuclear 
     research between industry, national labs and universities 
     through Nuclear Energy Research Initiative (NERI); (5) 
     support public outreach regarding nuclear science and 
     engineering; and (6) support communication and outreach 
     related to nuclear science and engineering.
       Subsection 2303(c) directs the Office to provide for: (1) 
     university research reactor refueling with low enriched 
     fuels, operational instrumentation upgrading, and reactor 
     sharing among universities; (2) assistance in relicensing and 
     upgrading university training reactors as part of a student 
     training program in collaboration with the U.S. nuclear 
     industry; and (3) awards for reactor improvements for 
     research, training and education.
       Subsection 2303(d) directs the Secretary to develop a 
     program in the Office for: nuclear science and technology 
     sabbatical fellowships for university professors at the 
     Department labs and for student fellowships at Department 
     labs; and a visiting scientist program for Department lab 
     staff to visit universities' nuclear science programs to work 
     with faculty and staff.
       Subsection 2303(e) requires the host institution to provide 
     at least 50 percent of the cost of a university research 
     reactor's operation when funds authorized under this subtitle 
     are used to supplement operation of such research reactor.
       Subsection 2303(f) requires that all grants, contracts, 
     cooperative agreements or other financial assistance awards 
     under this Act be made based on independent merit review.
       Subsection 2303(g) requires the Secretary to prepare a 
     report within six months of enactment of this Act, laying out 
     a five-year plan on the programs authorized in this section. 
     This report is to be delivered to the appropriate 
     congressional committees.
     Sec. 2304. Authorization of Appropriations
       Subsection 2304(a) authorizes total appropriation of funds 
     to carry out the purposes of this subtitle and for all funds 
     to remain available until expended: $30.2 million for FY 
     2002; $41.0 million for FY 2003; $47.9 million for FY 2004; 
     $55.6 million for FY 2005; and $64.1 million for FY 2006.
       For the Graduate and Undergraduate Fellowships to carry out 
     subsection 2303(b)(1) from the funds authorized in subsection 
     2304(a), subsection 2304(b) authorizes $3.0 million for FY 
     2002, $3.1 million for FY 2003, $3.2 million for FY 2004, 
     $3.2 million for FY 2005, and $3.2 million for FY 2006.
       For the Junior Faculty Research Initiation Grant Program to 
     carry out subsection 2303(b)(2) from the funds authorized in 
     subsection 2304(a), subsection 2304(c) authorizes $5.0 
     million for FY 2002, $7.0 million for FY 2003, $8.0 million 
     for FY 2004, $9.0 million for FY 2005, and $10.0 million for 
     FY 2006.
       For the Nuclear Engineering and Education Research Program 
     to carry out subsection 2303(b)(3) from the funds authorized 
     in subsection 2304(a), subsection 2304(d) authorizes $8.0 
     million for FY 2002, $12.0 million for FY 2003, $13.0 million 
     for FY 2004, $15.0 million for FY 2005, and $20.0 million for 
     FY 2006.
       For Communication and Outreach Related to Nuclear Science 
     and Engineering to carry out subsection 2303(b)(5) from the 
     funds authorized in subsection 2304(a), subsection 2304(e) 
     authorizes $0.2 million for each of FY 2002 and FY 2003, and 
     $0.3 million for each of FY 2004 through FY 2006.
       For Refueling of Research Reactors and Instrumentation 
     Upgrades to carry out subsection 2303(c)(1) from the funds 
     authorized in subsection 2304(a), subsection 2304(f) 
     authorizes $6.0 million for FY 2002, $6.5 million for FY 
     2003, $7.0 million for FY 2004, $7.5 million for FY 2005, and 
     $8.0 million for FY 2006.
       For Relicensing Assistance to carry out subsection 
     2303(c)(2) from the funds authorized in subsection 2304(a), 
     subsection 2304(g) authorizes $1.0 million for FY 2002, $1.1 
     million for FY 2003, $1.2 million for FY 2004, and $1.3 
     million for each of FY 2005 and FY 2006.
       For the Reactor Research and Training Award Program to 
     carry out subsection 2303(c)(3) from the funds authorized in 
     subsection 2304(a), subsection 2304(h) authorizes $6.0 
     million for FY 2002, $10.0 million for FY 2003, $14.0 million 
     for FY 2004, $18.0 million for FY 2005, and $20.0 million for 
     FY 2006.
       For University-Department Laboratory Interactions to carry 
     out subsection 2303(d) from the funds authorized in 
     subsection 2304(a), subsection 2304(i) authorizes $1.0 
     million for FY 2002, $1.1 million for FY 2003, $1.2 million 
     for FY 2004, and $1.3 million for each of FY 2005 and FY 
     2006.

                       TITLE III--NUCLEAR ENERGY

Subtitle B--Advanced Fuel Recycling Technology Research and Development 
                                Program

     Sec. 2321. Program
       Section 2321(a) requires the Secretary, through the 
     Director of the Office, to conduct an advanced fuel recycling 
     technology R&D program to further the availability of 
     proliferation resistant fuel recycling technologies as an 
     alternative to aqueous reprocessing in support of evaluation 
     of alternative national strategies for spent nuclear fuel and 
     the Generation IV advanced reactor concepts, subject to 
     annual review by the Secretary's Nuclear Energy Research 
     Advisory Committee or other independent entity, as 
     appropriate.
       Section 2321(b) requires the Secretary to report on the 
     activities of the advanced fuel recycling technology R&D 
     program as part of the Department's annual budget submission.
       Section 2321(c) authorizes: (1) $10.0 million for FY 2002, 
     and (2) such sums as are necessary for FY 2003 and FY 2004.

                       TITLE III--NUCLEAR ENERGY

    Subtitle C--Department of Energy Authorization of Appropriations

     Sec. 2341. Nuclear Energy Research Initiative
       Subsection 2341(a) requires the Secretary, through the 
     Office, to conduct a Nuclear Energy Research Initiative for 
     grants to be competitively awarded and subject to peer review 
     for research relating to nuclear energy.
       Subsection 2341(b) mandates that the program be directed 
     toward accomplishing the objectives of: (1) developing 
     advanced concepts and scientific breakthroughs in nuclear 
     fission and reactor technology to address and overcome the 
     principal technical and scientific obstacles to the expanded 
     use of nuclear energy in the United States; (2) advancing the 
     state of nuclear technology to maintain a competitive 
     position in foreign markets and a future domestic market; (3) 
     promoting and maintaining a United States nuclear science and 
     engineering infrastructure to meet future technical 
     challenges; (4) providing an effective means to collaborate 
     on a cost-shared basis with international agencies and 
     research organizations to address and influence nuclear 
     technology development worldwide; and (5) promoting United 
     States leadership and partnerships in bilateral and 
     multilateral nuclear energy research.
       Subsection 2341(c) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $60.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2342. Nuclear Energy Plant Optimization Program
       Subsection 2342(a) requires the Secretary to conduct a 
     Nuclear Energy Plant Optimization R&D program jointly with 
     industry and cost-shared by industry by at least 50 percent 
     and subject to annual review by the Secretary's Nuclear 
     Energy Research Advisory Committee or other independent 
     entity, as appropriate.
       Subsection 2342(b) states the program shall be directed 
     toward accomplishing the following technical objectives: (1) 
     managing long-term effects of component aging; and (2) 
     improving efficiency and productivity of existing nuclear 
     power stations.
       Subsection 2342(c) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $15.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2343. Nuclear Energy Technologies
       Subsection 2343(a) requires the Secretary to conduct a 
     study of Generation IV nuclear energy systems, including 
     development of a technology roadmap and performance of R&D 
     necessary to make an informed technical decision regarding 
     the most promising candidates for commercial application.
       Under subsection 2343(b), to the extent practicable, in 
     conducting the study under subsection 2343(a), the Secretary 
     shall study nuclear energy systems that offer the highest 
     probability of achieving the goals for Generation IV nuclear 
     energy systems, including: (1) economics competitive with any 
     other generators; (2) enhanced safety features, including 
     passive safety features; (3) substantially reduced production 
     of high-level waste, as compared with the quantity of waste 
     produced by reactors in operation on the date of enactment of 
     this Act; (4) highly proliferation-resistant fuel and waste;

[[Page 15455]]

     (5) sustainable energy generation including optimized fuel 
     utilization; and (6) substantially improved thermal 
     efficiency, as compared with the thermal efficiency of 
     reactors in operation on the date of enactment of this Act.
       In preparing the study under subsection 2343(b), subsection 
     2343(c) requires the Secretary to consult with appropriate 
     representatives of industry, institutions of higher 
     education, Federal agencies, and international, professional 
     and technical organizations.
       Subsection 2343(d) requires that, not later than December 
     31, 2002, the Secretary shall transmit to the appropriate 
     congressional committees a report describing the activities 
     of the Secretary under this section, and plans for R&D 
     leading to a public/private cooperative demonstration of one 
     or more Generation IV nuclear energy systems. The report 
     shall contain: (A) an assessment of all available 
     technologies; (B) a summary of actions needed for the most 
     promising candidates to be considered as viable commercial 
     options within the five to ten years after the date of the 
     report, with consideration of regulatory, economic, and 
     technical issues; (C) a recommendation of not more than three 
     promising Generation IV nuclear energy system concepts for 
     further development; (D) an evaluation of opportunities for 
     public/private partnerships; (E) a recommendation for the 
     structure of a public/private partnership to share in 
     development and construction costs; (F) a plan leading to the 
     selection and conceptual design, by September 30, 2004, of at 
     least one Generation IV nuclear energy system concept 
     recommended under subparagraph (C) for demonstration through 
     a public/private partnership; (G) an evaluation of 
     opportunities for siting demonstration facilities on DOE 
     land; and (H) a recommendation for appropriate involvement of 
     other Federal agencies.
       Subsection 2343(e) authorizes to be appropriated to the 
     Secretary to carry out this section: (1) $20.0 million for FY 
     2002; and (2) such sums as are necessary for FY 2003 and FY 
     2004.
     Sec. 2344. Authorization of Appropriations
       Subsection 2344(a) authorizes activities under this title 
     for nuclear energy operation and maintenance, including 
     amounts authorized under sections 2304(a) (University Nuclear 
     Science and Engineering), 2321(c) (Advanced Fuel Recycling 
     Technology R&D Program), 2341(c) (Nuclear Energy Research 
     Initiative), 2342(c) (Nuclear Energy Plant Optimization 
     Program), and 2343(e) (Nuclear Energy Technologies), and 
     including Advanced Radioisotope Power Systems, Test Reactor 
     Landlord, and Program Direction, $191.2 million for FY 2002, 
     $199.0 million for FY 2003, and $207.0 million for FY 2004, 
     to remain available until expended.
       Subsection 2344(b) authorizes:
       (1) $0.95 million for FY 2002, $2.2 million for FY 2003, 
     $1.246 million for FY 2004, and $1.699 million for FY 2005 
     for completion of construction of Project 99-E-200, Test 
     Reactor Area (TRA) Electric Utility Upgrade, Idaho National 
     Engineering and Environmental Laboratory (INEEL); and
       (2) $0.5 million for each of FY 2002 through FY 2005 for 
     completion of construction of Project 95-E-201, TRA Fire and 
     Life Safety Improvements, INEEL.
       Subsection 2344(c) provides that none of the funds 
     authorized to be appropriated in subsection 2481(a) may be 
     used for: ``(1) Nuclear Energy Isotope Support and 
     Production; (2) Argonne National Laboratory-West Operations; 
     (3) Fast Flux Test Facility; or (4) Nuclear Facilities 
     Management.'' These limitations are included to preserve the 
     Science Committee's sole jurisdiction over the bill since the 
     jurisdiction of programs under this subsection either resides 
     with the Committee on Energy and Commerce or is shared with 
     that Committee.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

     Sec. 2401. Coal and Related Technologies Programs
       Subsection 2401(a) authorizes to be appropriated to the 
     Secretary $172.0 million for FY 2002, $179.0 million for FY 
     2003, and $186.0 million for FY 2004, to remain available 
     until expended, for other coal and related technologies 
     programs, which shall include: (1) Innovations for Existing 
     Plants; (2) Integrated Gasification Combined Cycle; (3) 
     advanced combustion systems; (4) Turbines; (5) Sequestration 
     Research and Development; (6) innovative technologies for 
     demonstration; (7) Transportation Fuels and Chemicals; (8) 
     Solid Fuels and Feedstocks; (9) Advanced Fuels Research; and 
     (10) Advanced Research.
       Notwithstanding subsection 2401(a), subsection 2405(b) 
     prohibits the use of funds to carry out the activities 
     authorized by this subtitle after September 30, 2002, unless 
     the Secretary has transmitted to the appropriate 
     congressional committees the report required by this 
     subsection and one month have elapsed since that 
     transmission. The report must include a plan containing: (1) 
     a detailed description of how proposals will be solicited and 
     evaluated, including a list of all activities expected to be 
     undertaken; (2) a detailed list of technical milestones for 
     each coal and related technology that will be pursued; and 
     (3) a description of how the programs authorized in this 
     section will be carried out so as to complement and not 
     duplicate activities authorized under division E (Clean Coal 
     Power Initiative).

                        TITLE IV--FOSSIL ENERGY

                        Subtitle B--Oil and Gas

     Sec. 2421. Petroleum-Oil Technology
       Section 2421 directs the Secretary to conduct a RD&D and 
     commercial application program on petroleum-oil technology. 
     The programs shall address: (1) Exploration and Production 
     Supporting Research; (2) Oil Technology Reservoir Management/
     Extension; and (3) Effective Environmental Protection.
     Sec. 2422. Gas
       Section 2422 directs the Secretary to conduct a program of 
     RD&D and commercial application on natural gas technologies. 
     The program shall address: (1) Exploration and Production; 
     (2) Infrastructure; and (3) Effective Environmental 
     Protection.

                        TITLE IV--FOSSIL ENERGY

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

     Sec. 2441. Short Title
       Section 2441 cites the subtitle as the ``Natural Gas and 
     Other Petroleum Research, Development, and Demonstration Act 
     of 2001.''
     Sec. 2442. Definitions
       Section 2442 defines six terms, including the terms 
     ``deepwater'' to mean water depths greater than 200 meters 
     but less than 1,500 meters, ``ultra-deepwater'' to mean water 
     depths greater than 1,500 meters, and ``unconventional'' to 
     mean located in heretofore inaccessible or uneconomic 
     formations on land.
     Sec. 2443. Ultra-Deepwater Program
       Section 2443 requires the Secretary to establish a program 
     of RD&D of ultra-deepwater natural gas and other petroleum 
     exploration and production technologies, in areas currently 
     available for Outer Continental Shelf leasing. The program 
     shall be carried out by the Research Organization as provided 
     in this subtitle.
     Sec. 2444. National Energy Technology Laboratory
       The National Energy Technology Laboratory (NETL) and the 
     U.S. Geological Survey (USGS), when appropriate, shall carry 
     out programs of long-term research into new natural gas and 
     other petroleum exploration and production technologies and 
     environmental mitigation technologies for production from 
     unconventional and ultra-deepwater resources, including 
     methane hydrates. NETL shall conduct a program of RD&D of new 
     technologies for the reduction of greenhouse gas emissions 
     from unconventional and ultra-deepwater natural gas or other 
     petroleum exploration and production activities, including 
     sub-sea floor carbon sequestration technologies.
     Sec. 2445. Advisory Committee
       Within six months after the date of the enactment of this 
     Act, subsection 2445(a) requires the Secretary to establish 
     an Advisory Committee consisting of seven members, each 
     having extensive operational knowledge of and experience in 
     the natural gas and other petroleum exploration and 
     production industry who are not Federal Government employees 
     or contractors. A minimum of four members shall have 
     extensive knowledge of ultra-deepwater natural gas or other 
     petroleum exploration and production technologies, a minimum 
     of two members shall have extensive knowledge of 
     unconventional natural gas or other petroleum exploration and 
     production technologies, and at least one member shall have 
     extensive knowledge of greenhouse gas emission reduction 
     technologies, including carbon sequestration.
       Subsection 2445(b) defines the function of the Advisory 
     Committee to be to advise the Secretary on the selection of 
     an organization to create the Research Organization and on 
     the implementation of this subtitle.
       Under subsection 2445(c), members of the Advisory Committee 
     shall serve without compensation but shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with applicable provisions under subchapter I of 
     chapter 57 of title 5, United States Code.
       Subsection 2445(d) provides that the costs of activities 
     carried out by the Secretary and the Advisory Committee under 
     this subtitle shall be paid or reimbursed from the Fund 
     established in section 2450.
       Under subsection 2455(e), Section 14 of the Federal 
     Advisory Committee Act shall not apply to the Advisory 
     Committee.
     See. 2446. Research Organization
       Subsection 2446(a) requires the Secretary, within six 
     months after the date of the enactment of this Act, to 
     solicit proposals from eligible entities for the creation of 
     the Research Organization, and within three months after such 
     solicitation, to select an entity to create the Research 
     Organization.
       Under subsection 2446(b), entities eligible to create the 
     Research Organization shall: (1) have been in existence as of 
     the date of the enactment of this Act; (2) be entities exempt 
     from tax under section 501(c)(3) of the Internal Revenue Code 
     of 1986; and (3) be experienced in planning and managing 
     programs in natural gas or other petroleum exploration and 
     production RD&D.
       Subsection 24246(c) requires that a proposal from an entity 
     seeking to create the Research Organization shall include a 
     detailed

[[Page 15456]]

     description of the proposed membership and structure of the 
     Research Organization.
       The functions of the Research Organization, as defined in 
     subsection 2446(c) are to: (1) award grants on a competitive 
     basis to qualified research institutions, institutions of 
     higher education, companies, and consortia of same for the 
     purpose of conducting RD&D of unconventional and ultra-
     deepwater natural gas or other petroleum exploration and 
     production technologies; and (2) review activities under 
     those grants to ensure that they comply with the requirements 
     of this subtitle and serve the purposes for which the grants 
     were made.
     Sec. 2447. Grants
       Subsection 2447(a) provides for three types of grants: (1) 
     unconventional, for RD&D of technologies aimed at 
     unconventional reservoirs; (2) ultra-deepwater, for R&D of 
     technologies aimed at ultra-deepwater areas; and (3) ultra-
     deepwater architecture. In the case of ultradeepwater 
     architecture, the Research Organization shall award a grant 
     to one or more consortia for the purpose of developing and 
     demonstrating the next generation architecture for 
     ultradeepwater production of natural gas and other petroleum.
       Subsection 2447(b) provides that grants under this section 
     shall contain seven specific conditions:
       1. If the grant recipient consists of more than one entity, 
     the recipient shall provide a signed contract agreed to by 
     all participating members clearly defining all rights to 
     intellectual property for existing technology and for future 
     inventions conceived and developed using funds provided under 
     the grant, in a manner that is consistent with applicable 
     laws.
       2. There shall be a repayment schedule for Federal dollars 
     provided for demonstration projects under the grant in the 
     event of a successful commercialization of the demonstrated 
     technology. Such repayment schedule shall provide that the 
     payments are made to the Secretary with the express intent 
     that these payments not impede the adoption of the 
     demonstrated technology in the marketplace. In the event that 
     such impedance occurs due to market forces or other factors, 
     the Research Organization shall renegotiate the grant 
     agreement so that the acceptance of the technology in the 
     marketplace is enabled.
       3. Applications for grants for demonstration projects shall 
     clearly state the intended commercial applications of the 
     technology demonstrated.
       4. The total amount of funds made available under a grant 
     provided under subsection 2447(a)(3) for ultra-deepwater 
     architecture shall not exceed 50 percent of the total cost of 
     the activities for which the grant is provided.
       5. The total amount of funds made available under a grant 
     provided either under subsection 2447(a)(1) for 
     unconventional reservoirs or under subsection 2447(a)(2) for 
     ultradeepwater areas shall not exceed 50 percent of the total 
     cost of the activities covered by the grant, except that the 
     Research Organization may elect to provide grants covering a 
     higher percentage, not to exceed 90 percent, of total project 
     costs in the case of grants made solely to independent 
     producers.
       6. An appropriate amount of funds provided under a grant 
     shall be used for the broad dissemination of technologies 
     developed under the grant to interested institutions of 
     higher education, industry, and appropriate Federal and State 
     technology entities to ensure the greatest possible benefits 
     for the public and use of government resources.
       7. Demonstrations of ultra-deepwater technologies for which 
     funds are provided under a grant may be conducted in ultra-
     deepwater or deepwater locations.
       Subsection 2447(c) requires that funds available for grants 
     under this subtitle be allocated as follows: (1) 15 percent 
     shall be for grants under subsection 2447(a)(1) for 
     unconventional reservoirs; (2) 15 percent shall be for grants 
     under subsection 2447(a)(2) for ultra-deepwater areas; (3) 60 
     percent shall be for grants under subsection 2447(a)(3) for 
     ultra-deepwater architecture; and (4) 10 percent shall be for 
     the NETL and the USGS, when appropriate, for carrying out 
     section 2444.
     Sec. 2448. Plan and Funding
       Subsection 2448(a) requires the Research Organization to 
     transmit to the Secretary an annual plan proposing projects 
     and funding of activities under each paragraph of section 
     2447(a).
       Under subsection 2448(b), the Secretary shall have one 
     month to review the annual plan, and shall approve the plan, 
     if it is consistent with this subtitle. If the Secretary 
     approves the plan, the Secretary shall provide funding as 
     proposed in the plan. If the Secretary does not approve the 
     plan, subsection 2448(c) provides that the Secretary shall 
     notify the Research Organization of the reasons for 
     disapproval and shall withhold funding until a new plan is 
     submitted which the Secretary approves, Within one month 
     after notifying the Research Organization of a disapproval, 
     the Secretary shall notify the appropriate congressional 
     committees of the disapproval.
     Sec. 2449. Audit
       Section 2449 requires the Secretary to retain an 
     independent, commercial auditor to determine the extent to 
     which the funds authorized by this subtitle have been 
     expended in a manner consistent with the purposes of this 
     subtitle. The auditor must transmit a report annually to the 
     Secretary, who shall transmit the report to the appropriate 
     congressional committees, along with a plan to remedy any 
     deficiencies cited in the report.
     Sec. 2450. Fund
       Subsection 2450(a) establishes a fund to be known as the 
     ``Ultra-Deepwater and Unconventional Gas Research Fund'' 
     (Fund) in the United States Treasury (Treasury), which shall 
     be available for obligation to the extent provided in advance 
     in appropriations Acts for allocation under section 2447(c) 
     above.
       Subsection 2450(b) specifies the Fund's three funding 
     sources:
       1. Loans from the Treasury--Subsection 2450(b)(1) 
     authorizes to be appropriated to the Secretary $900.0 million 
     for the period encompassing FY 2002 through FY 2009. Such 
     amounts shall be deposited by the Secretary in the Fund, and 
     shall be considered loans from the Treasury. Income received 
     by the United States in connection with any ultra-deepwater 
     oil and gas leases shall be deposited in the Treasury and 
     considered as repayment for the loans under this paragraph.
       2. Additional Appropriations--Subsection 2450(b)(2) 
     authorizes to be appropriated to the Secretary such sums as 
     may be necessary for FY 2002 through FY 2009, to be deposited 
     in the Fund.
       3. Oil and Gas Lease Income--To the extent provided in 
     advance in appropriations Acts, not more than 7.5 percent of 
     the income of the United States from Federal oil and gas 
     leases may be deposited in the Fund for FY 2002 through FY 
     2009. The Congressional Budget Office estimates these amounts 
     to total $3.616 billion.
     Sec. 2451. Sunset
       Under section 2451, no funds are authorized to be 
     appropriated for carrying out this subtitle after FY 2009, 
     and the Research Organization is terminated when it has 
     expended all funds made available pursuant to this subtitle.

                        TITLE IV--FOSSIL ENERGY

                         Subtitle D--Fuel Cells

     Sec. 2461. Fuel Cells
       Section 2461(a) requires the Secretary to conduct a program 
     of research, development, RD&D and commercial application on 
     fuel cells. The program shall address: (1) Advanced Research; 
     (2) Systems Development; (3) Vision 21-Hybrids; and (4) 
     Innovative Concepts.
       In addition to the program under subsection 2461(a), 
     subsection 2461(b) requires the Secretary, in consultation 
     other Federal agencies, as appropriate, to establish a 
     program for the demonstration of fuel cell technologies, 
     including fuel cell proton exchange membrane technology, for 
     commercial, residential, and transportation applications. The 
     program shall specifically focus on promoting the application 
     of and improved manufacturing production and processes for 
     fuel cell technologies.
       Under subsection 2461(c), within the amounts authorized to 
     be appropriated under subsection 2481(a), there are 
     authorized to be appropriated to the Secretary for the 
     purpose of carrying out subsection 2461 (b) $28.0 million for 
     each of FY 2002, 2003, and 2004.

                        TITLE IV--FOSSIL ENERGY

            Subtitle E--DOE Authorization of Appropriations

     Sec. 2481. Authorization of appropriations
       Subsection 2481 (a) authorizes appropriations for subtitle 
     B (Oil and Gas) and subtitle D (Fuel Cells), and for Fossil 
     Energy Research and Development Headquarters Program 
     Direction, Field Program Direction, Plant and Capital 
     Equipment, Cooperative Research and Development, Import/
     Export Authorization, and Advanced Metallurgical Processes 
     $282.0 million for FY 2002, $293.0 million for FY 2003, and 
     $305.0 million for FY 2004.
       Subsection 2481(b) provides that none of the funds 
     authorized to be appropriated in subsection 2481(a) may be 
     used for: ``(1) Gas Hydrates; (2) Fossil Energy Environmental 
     Restoration; or (3) RD&D and commercial application on coal 
     and related technologies, including activities under subtitle 
     A.'' The first limitation is imposed because the Methane 
     Hydrate Act of 2000 has been recently enacted and has its own 
     separate authorization. The second limitation is included to 
     preserve the Science Committee's sole jurisdiction over the 
     bill, since the jurisdiction of Fossil Energy Environmental 
     Restoration is shared with the Committee on Energy and 
     Commerce. The third limitation is imposed to limit the amount 
     of coal funding to that contained in subtitle A.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

     Sec. 2501. Short Title
       Section 2501 cites the subtitle as the ``Fusion Energy 
     Sciences Act of 2001.''
     Sec. 2502. Findings
       Section 2502 lists nine findings.
     Sec. 2503. Plan for Fusion Experiment
       Subsection 2503(a) requires the Secretary, in full 
     consultation with the Fusion Energy Sciences Advisory 
     Committee and the Secretary of Energy Advisory Board as 
     appropriate, to develop a plan for construction in

[[Page 15457]]

     the United States of a magnetic fusion burning plasma 
     experiment for the purpose of accelerating scientific 
     understanding of fusion plasmas. The Secretary shall request 
     a review of the plan by the National Academy of Sciences 
     (NAS), and shall transmit the Department plan and the NAS 
     review to the Congress by July 1, 2004.
       Subsection 2503(b) requires the plan to: (1) address key 
     burning plasma physics issues; and (2) include specific 
     information on the scientific capabilities of the proposed 
     experiment, the relevance of these capabilities to the goal 
     of practical fusion energy, and the overall design of the 
     experiment including its estimated cost and identifying 
     potential construction sites.
       Subsection 2503(c) authorizes the Secretary, in full 
     consultation with the Fusion Energy Sciences Advisory 
     Committee and the Secretary of Energy Advisory Board as 
     appropriate, to develop a plan for the United States 
     participation in an international burning plasma experiment 
     for the purpose of accelerating scientific understanding of 
     fusion plasmas, whose construction is found by the Secretary 
     to be highly likely and where the United States participation 
     is cost effective relative to the cost and scientific 
     benefits of a domestic experiment described in subsection 
     2503(a). If the Secretary elects to develop a plan under this 
     subsection, the Secretary shall include the information 
     described in subsection 2503(b), and an estimate of the cost 
     of United States participation in such an international 
     experiment. The Secretary shall request a review by the NAS 
     of any such plan, shall transmit the plan and the review to 
     the Congress by July 1, 2004.
       Subsection 2503(d) authorizes the Secretary, through the 
     Department's Fusion Energy Sciences Program, to conduct any 
     R&D necessary to fully develop the plans described in this 
     section.
     Sec. 2504. Plan for Fusion Energy Sciences Program
       Section 2504 requires that within six months after the 
     enactment of this Act, the Secretary, in full consultation 
     with the Fusion Energy Sciences Advisory Committee, to 
     develop and transmit to the Congress a plan for the purpose 
     of ensuring a strong scientific base for the Fusion Energy 
     Sciences Program and to enable the burning plasma experiment 
     described in section 2503. Such plan shall ensure: (1) that 
     existing fusion research facilities and equipment are more 
     fully utilized with appropriate measurements and control 
     tools; (2) a strengthened fusion science theory and 
     computational base; (3) that the selection of and funding for 
     new magnetic and inertial fusion research facilities is based 
     on scientific innovation and cost effectiveness; (4) 
     improvement in the communication of scientific results and 
     methods between the fusion science community and the wider 
     scientific community; (5) that adequate support is provided 
     to optimize the design of the magnetic fusion burning plasma 
     experiment referred to in section 2503; (6) that inertial 
     confinement fusion facilities are utilized to the extent 
     practicable for the purpose of inertial fusion energy R&D 
     (7) the development of a roadmap for a fusion-based energy 
     source that shows the important scientific questions, the 
     evolution of confinement configurations, the relation between 
     these two features, and their relation to the fusion energy 
     goal; (8) the establishment of several new centers of 
     excellence, selected through a competitive peer-review 
     process and devoted to exploring the frontiers of fusion 
     science; (9) that the NSF, and other agencies, as 
     appropriate, play a role in extending the reach of fusion 
     science and in sponsoring general plasma science; and (10) 
     that there be continuing broad assessments of the outlook for 
     fusion energy and periodic external reviews of fusion energy 
     sciences.
     Sec. 2505. Authorization of Appropriations
       Section 2505 authorizes--for ongoing activities in 
     Department's Fusion Energy Sciences Program and for the 
     purpose of planning activities under section 2503, but not 
     for implementation of such plans--$320.0 million for FY 2002 
     and $335.0 million for FY 2003 of which up to $15 million for 
     each of FY 2002 and FY 2003 may be used to establish several 
     new centers of excellence under section 2504(8).

                            TITLE V--SCIENCE

                 Subtitle B--Spallation Neutron Source

     Sec. 2521. Definition
       Section 2521 defines the term ``Spallation Neutron Source'' 
     to mean Department Project 99E-334, Oak Ridge National 
     Laboratory, Oak Ridge, Tennessee.
     Sec. 2522. Authorization of Appropriations
       Subsection 2522(a) authorizes to be appropriated to the 
     Secretary for construction of the Spallation Neutron Source 
     (SNS): (1) $276.3 million for FY 2002, (2) $210.571 million 
     for FY 2003, (3) S 124.6 million for FY 2004, (4) $79.8 
     million for FY 2005, and (5) $41.1 million for FY 2006 for 
     completion of construction.
       Subsection 2522(b) authorizes appropriation for other SNS 
     project costs (including R&D necessary to complete the 
     project, preoperations costs, and capital equipment not 
     related to construction) $15.353 million for FY 2002 and 
     $103.279 million for FY 2003 through 2006, to remain 
     available until expended through September 30, 2006.
     Sec. 2523. Report
       Section 2523 requires the Secretary to report on the SNS as 
     part of Department's annual budget submission, including a 
     description of the achievement of milestones, a comparison of 
     actual costs to estimated costs, and any changes in estimated 
     project costs or schedule.
     Sec. 2524. Limitations
       Section 2524 limits the total amount obligated for the SNS 
     by the Department, including prior year appropriations, to 
     not more than: (1) S1,192.7 million for costs of 
     construction; (2) $219.0 million for other project costs; and 
     (3) $1,411.7 million for total project cost.

                            TITLE V--SCIENCE

      Subtitle C--Facilities, Infrastructure, and User Facilities

     Sec. 2541. Definition
       Subsection 2541(l) defines the term ``nonmilitary energy 
     laboratory'' to mean: (A) Ames Laboratory; (B) Argonne 
     National Laboratory; (C) Brookhaven National Laboratory; (D) 
     Fermi National Accelerator Laboratory; (E) Lawrence Berkeley 
     National Laboratory; (F) Oak Ridge National Laboratory; (G) 
     Pacific Northwest National Laboratory; (H) Princeton Plasma 
     Physics Laboratory; (1) Stanford Linear Accelerator Center; 
     (J) Thomas Jefferson National Accelerator Facility; or (K) 
     any other facility of the Department that the Secretary, in 
     consultation with the Director, Office of Science and the 
     appropriate congressional committees, determines to be 
     consistent with the mission of the Office of Science.
       Subsection 2541(2) defines the term ``user facility'' to 
     mean: (A) an Office of Science facility at a non-military 
     energy laboratory that provides special scientific and 
     research capabilities, including technical expertise and 
     support as appropriate, to serve the research needs of the 
     Nation's universities, industry, private laboratories, 
     Federal laboratories, and others, including research 
     institutions or individuals from other nations where 
     reciprocal accommodations are provided to United States 
     research institutions and individuals or where the Secretary 
     considers such accommodation to be in the national interest; 
     and (B) any other Office of Science funded facility 
     designated by the Secretary as a user facility.
     Sec. 2542. Facility and Infrastructure Support for 
         Nonmilitary Energy Laboratories
       Subsection 2542(a) requires the Secretary to develop and 
     implement a least-cost nonmilitary energy laboratory facility 
     and infrastructure strategy for: (1) maintaining existing 
     facilities and infrastructure, as needed; (2) closing 
     unneeded facilities; (3) making facility modifications; and 
     (4) building new facilities.
       Subsection 2542(b) requires the Secretary to prepare a 
     comprehensive ten-year plan for conducting future facility 
     maintenance, making repairs, modifications, and new 
     additions, and constructing new facilities at each 
     nonmilitary energy laboratory. Such plan is to provide for 
     facilities work in accordance with the following priorities: 
     (1) providing for the safety and health of employees, 
     visitors, and the general public with regard to correcting 
     existing structural, mechanical, electrical, and 
     environmental deficiencies; (2) providing for the repair and 
     rehabilitation of existing facilities to keep them in use and 
     prevent deterioration, if feasible; and (3) providing 
     engineering design and construction services for those 
     facilities that require modification or additions in order to 
     meet the needs of new or expanded programs.
       Subsection 2542(c) requires the Secretary to prepare and 
     transmit to the appropriate congressional committees a report 
     containing the plan prepared under subsection 2542(b) within 
     one year after the date of the enactment of this Act. For 
     each nonmilitary energy laboratory, the report is to contain: 
     (1) the current priority list of proposed facilities and 
     infrastructure projects, including cost and schedule 
     requirements; (2) a current ten-year plan that demonstrates 
     the reconfiguration of its facilities and infrastructure to 
     meet its missions and to address its long-term operational 
     costs and return on investment; (3) the total current budget 
     for all facilities and infrastructure funding; and (4) the 
     current status of each facilities and infrastructure project 
     compared to the original baseline cost, schedule, and scope.
       The report shall also: (1) include a plan for new 
     facilities and facility modifications at each nonmilitary 
     energy laboratory that will be required to meet the 
     Department's changing missions for the twenty-first century, 
     including schedules and estimates for implementation, and 
     including a section outlining long-term funding requirements 
     consistent with anticipated budgets and annual authorization 
     of appropriations; (2) address the coordination of 
     modernization and consolidation of facilities among the 
     nonmilitary energy laboratories in order to meet changing 
     mission requirements; and (3) provide for annual reports to 
     the appropriate congressional committees on accomplishments, 
     conformance to schedules, commitments, and expenditures.
     Sec. 2543. User Facilities
       Under subsection 2543(a), when the Department makes a user 
     facility available to universities and other potential users, 
     or seeks

[[Page 15458]]

     input from universities and other potential users regarding 
     significant characteristics or equipment in a user facility 
     or a proposed user facility, the Department shall ensure 
     broad public notice of such availability or such need for 
     input to universities and other potential users.
       Subsection 2543(b) requires the Department to employ full 
     and open competition in selecting participants when the 
     Department considers the participation of a university or 
     other potential user in the establishment or operation of a 
     user facility.
       Section 2543(c) prohibits the Department from redesignating 
     a user facility, as defined by section 2541 (b) as something 
     other than a user facility to avoid the requirements of 
     subsections (a) and (b).

                            TITLE V--SCIENCE

            Subtitle D--Advisory Panel on Office of Science

     Sec. 2561. Establishment
       Section 2561 requires the Director of the Office of Science 
     and Technology Policy, in consultation with the Secretary, to 
     establish an Advisory Panel on the Office of Science 
     comprised of knowledgeable individuals to: (1) address 
     concerns about the current status and the future of 
     scientific research supported by the Office; (2) examine 
     alternatives to the current organizational structure of the 
     Office within the Department, taking into consideration 
     existing structures for the support of scientific research in 
     other Federal agencies and the private sector; and (3) 
     suggest actions to strengthen the scientific research 
     supported by the Office that might be taken jointly by the 
     Department and Congress.
     Sec. 2562. Report
       Under section 2562, within six months after the date of the 
     enactment of this Act, the Advisory Panel shall transmit its 
     findings and recommendations in a report to the Director of 
     the Office of Science and Technology Policy and the 
     Secretary. The Director and the Secretary shall jointly: (1) 
     consider each of the Panel's findings and recommendations, 
     and comment on each as they consider appropriate; and (2) 
     transmit the Panel's report and the comments of the Director 
     and the Secretary on the report to the appropriate 
     congressional committees within nine months after the date of 
     the enactment of this Act.

                            TITLE V--SCIENCE

    Subtitle E--Department of Energy Authorization of Appropriations

     Sec. 2581. Authorization of appropriations
       Including the amounts authorized to be appropriated for FY 
     2002 under section 2505 for Fusion Energy Sciences and under 
     subsection 2522(b) for the SNS, subsection 2581(a) authorizes 
     to be appropriated to the Secretary for the Office of Science 
     (also including subtitle C--Facilities, Infrastructure, and 
     User Facilities, High Energy Physics, Nuclear Physics, 
     Biological and Environmental Research, Basic Energy Sciences 
     (except for the SNS authorization under subsection 2522(b)), 
     Advanced Scientific Computing Research, Energy Research 
     Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Facilities and Infrastructure, Safeguards and 
     Security, and Program Direction) operation and maintenance 
     $3,299.558 million for FY year 2002, to remain available 
     until expended.
       Subsection 2581(b) provides that within the amounts 
     authorized under subsection (a), $5.0 million for FY 2002 may 
     be used to carry out research in the use of precious metals 
     (excluding platinum, palladium, and rhodium) in catalysis, 
     either directly though national laboratories, or through the 
     award of grants, cooperative agreements, or contracts with 
     public or nonprofit entities.
       Subsection 2581(c) provides that in addition to the amounts 
     authorized under subsection 2522(a) for SNS construction, 
     subsection 2581 (b) authorizes:
       (1) $11.4 million for FY 2002 for completion of 
     construction of Project 98-G-304, Neutrinos at the Main 
     Injector, Fermi National Accelerator Laboratory;
       (2) $11.405 million for FY 2002 for completion of 
     construction of Project 01-E-300, Laboratory for Comparative 
     and Functional Genomics, Oak Ridge National Laboratory;
       (3) $4.0 million for FY 2002, $8.0 million for FY 2003, and 
     $2.0 million for FY 2004 for completion of construction of 
     Project 02-SC-002, Project Engineering Design (PED), Various 
     Locations;
       (4) $3.183 million for FY 2002 for completion of 
     construction of Project 02-SC-002, Multiprogram Energy 
     Laboratories Infrastructure Project Engineer-ing Design 
     (PED), Various Locations; and
       (5) $18.633 million for FY 2002 and $13.029 million for FY 
     2003 for completion of construction of Project MEL-001, 
     Multiprogram Energy Laboratories, Infrastructure, Various 
     Locations.
       Subsection 2581(d) provides that none of the funds 
     authorized to be appropriated in subsection 2581(b) may be 
     used for construction at any national security laboratory as 
     defined in section 3281(l) of the National Defense 
     Authorization Act for Fiscal Year 2000 (50 U.S.C. 2471(l)) or 
     at any nuclear weapons production facility as defined in 
     section 3281(2) of the National Defense Authorization Act for 
     2000 (50 U.S.C. 2471(2)). This limitation is included to 
     preserve the Science Committee's sole jurisdiction over the 
     bill, since the jurisdiction of these laboratories and 
     facilities reside with the Committee on Armed Services.

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

     Sec. 2601. Research, Development, Demonstration and 
         Commercial Application of Energy Technology Programs, 
         Projects, and Activities
       Subsection 2601(a) requires that RD&D and commercial 
     application programs, projects, and activities authorized 
     under this Act be carried out under the procedures of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5901 et seq.), the Atomic Energy Act of 1954 
     (42 U.S.C. 2011 et seq.), or any other Act under which the 
     Secretary is authorized to carry out such programs, projects, 
     and activities, only to the extent the Secretary is 
     authorized to carry out such activities under each Act and 
     except as otherwise provided in this Act.
       Subsection 2601(b) authorizes the Secretary to use grants, 
     joint ventures, and any other form of agreement available to 
     the Secretary to the extent authorized under applicable 
     provisions of law, contracts, cooperative agreements, 
     cooperative R&D agreements under the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.), 
     except as otherwise provided in this Act, to carry out RD&D 
     and commercial application programs, projects, and 
     activities.
       Subsection 2601(c) defines the term ``joint venture'' for 
     the purpose of this section to have the meaning given that 
     term under section 2 of the National Cooperative Research and 
     Production Act of 1993 (15 U.S.C. 4301), except that such 
     term applies to RD&D and commercial application of energy 
     technology joint ventures.
       Subsection 2601(d) requires that section 12(c)(7) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(c)(7)), relating to the protection of information, will 
     apply to RD&D and commercial application of energy technology 
     programs, projects, and activities under this Act.
       Under subsection 2601(e), an invention conceived and 
     developed by any person using funds provided through a grant 
     under this Act shall be considered a subject invention for 
     the purposes of chapter 18 of title 35, United States Code 
     (commonly referred to as the Bayh-Dole Act).
       Subsection 2601(f) requires the Secretary to ensure that 
     each program authorized by this Act includes an outreach 
     component to provide information, as appropriate, to 
     manufacturers, consumers, engineers, architects, builders, 
     energy service companies, universities, facility planners and 
     managers, State and local governments, and other entities.
       Subsection 2601(g) requires the Secretary to provide 
     guidelines and procedures for the transition of energy 
     technologies from research through development and 
     demonstration to commercial application of energy technology 
     where appropriate. Nothing in this section precludes the 
     Secretary from: (1) entering into a contract, cooperative 
     agreement, cooperative R&D agreement under the Stevenson-
     Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et 
     seq.), grant, joint venture, or any other form of agreement 
     available to the Secretary under this section that relates to 
     RD&D and commercial application of energy technology; or (2) 
     extending a contract, cooperative agreement, cooperative R&D 
     agreement under the Stevenson-Wydler Technology Innovation 
     Act of 1980, grant, joint venture, or any other form of 
     agreement available to the Secretary that relates to RD&D to 
     cover commercial application of energy technology.
       Subsection 2601(h) states that this section shall not apply 
     to any contract, cooperative agreement, cooperative R&D 
     agreement under the Stevenson-Wydler Technology Innovation 
     Act of 1980 (15 U.S.C. 3701 et seq.), grant, joint venture, 
     or any other form of agreement available to the Secretary 
     that is in effect as of the date of enactment of this Act.
     Sec. 2602. Limits on Use of Funds
       Subsection 2602(a) prohibits the use of funds authorized by 
     this Act to award a management and operating contract for a 
     federally owned or operated nonmilitary energy laboratory of 
     the Department unless such contract is awarded using 
     competitive procedures or the Secretary grants, on a case-by-
     cease basis, a waiver to allow for such a deviation. The 
     Secretary may not delegate the authority to grant such a 
     waiver. At least 60 days before a contract award, amendment, 
     or modification for which the Secretary intends to grant such 
     a waiver, the Secretary shall submit to the appropriate 
     congressional committees a report notifying the committees of 
     the waiver and setting forth the reasons for the waiver.
       Subsection 2602(b) prohibits the Secretary from using funds 
     to produce or provide articles or services for the purpose of 
     selling the articles or services to a person outside the 
     Federal Government, unless the Secretary determines that 
     comparable articles or services are not available from a 
     commercial source in the United States.
       Subsection 2602(c) prohibits the Secretary from using funds 
     to prepare or initiate Requests for Proposals for a program 
     if Congress has not authorized the program.

[[Page 15459]]


     Sec. 2603. Cost Sharing
       Except as otherwise provided in this subtitle, subsection 
     2603(a) mandates that for R&D programs carried out under this 
     subtitle, the Secretary shall require a commitment from non-
     Federal sources of at least 20 percent of the cost of the 
     project. The Secretary may reduce or eliminate the non-
     Federal requirement under this subsection if the Secretary 
     determines that the R&D is of a basic or fundamental nature.
       Similarly, under subsection 2603(b) the Secretary shall 
     require at least 50 percent of the costs directly and 
     specifically related to any demonstration or commercial 
     application project under this subtitle to be provided from 
     non-Federal sources. The Secretary may reduce the non-Federal 
     requirement under this subsection if the Secretary determines 
     that the reduction is necessary and appropriate considering 
     the technological risks involved in the project and is 
     necessary to meet the objectives of this subtitle.
       In calculating the amount of the non-Federal commitment 
     under subsection (a) or (b), the Secretary may include 
     personnel, services, equipment, and other resources.
     Sec. 2604. Limitations on Demonstrations and Commercial 
         Application of Energy Technology
       Section 2604 requires the Secretary to provide funding only 
     for scientific or energy demonstration and commercial 
     application of energy technology programs, projects or 
     activities for technologies or processes that can reasonably 
     be expected to yield new, measurable benefits to the cost, 
     efficiency, or performance of the technology or process.
     Sec. 2605. Reprogramming
       Section 2605 prohibits the reprogramming of funds in excess 
     of 105 percent of the amount authorized for a program, 
     project, or activity, or in excess of $0.25 million above the 
     amount authorized for the program, program, project, or 
     activity until the Secretary submits a report to the 
     appropriate congressional committees and a period of 30 days 
     has elapsed after the date on which the report is received. 
     The report shall be a full and complete statement of the 
     proposed reprogramming and the facts and circumstances in 
     support of the proposed reprogramming. This section prohibits 
     the Secretary from obligating funds in excess of the total 
     amount authorized to be appropriated to the Secretary by this 
     Act and prohibits the Secretary from using funds for any use 
     for which Congress has declined to authorize funds.

                        TITLE VI--MISCELLANEOUS

               Subtitle B--Other Miscellaneous Provisions

     Sec. 2611. Notice of Reorganization
       Section 2611 requires the Secretary to provide notice to 
     the appropriate congressional committees not later than 15 
     days before any reorganization of environmental research or 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     program, project, or activity of the Department.
     Sec. 2612. Limits on General Plant Projects
       Section 2612 requires the Secretary to halt the 
     construction of a civilian environmental research, 
     development, or demonstration, or commercial application of 
     energy technology ``general plant project'' if the estimated 
     cost of the project (including any revisions) exceeds $5.0 
     million unless the Secretary has famished a complete report 
     to the appropriate congressional committees explaining the 
     project and the reasons for the estimate or revision.
     Sec. 2613. Limits on Construction Projects
       Section 2613 prohibits construction on a civilian 
     environmental R&D, scientific or energy RD&D, or commercial 
     application of energy technology project for which funding 
     has been specifically authorized by law to be initiated and 
     continued if the estimated cost for the project exceeds 110 
     percent of the higher of: (1) the amount authorized for the 
     project; or (2) the most recent total estimated cost 
     presented to Congress as budget justification for such 
     project. To exceed such limits, the Secretary must report in 
     detail to the appropriate congressional committees on the 
     related circumstances and the report must be before the 
     appropriate congressional committees for 30 legislative days 
     (excluding any day on which either House of Congress is not 
     in session because of an adjournment of more than three days 
     to a day certain). This section shall not apply to any 
     construction project that has a current estimated cost of 
     less than $5.0 million.
     Sec. 2614. Authority for Conceptual and Construction Design
       Section 2614 limits the Secretary's authority to request 
     construction funding in excess of $5.0 million for a civilian 
     environmental R&D, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity until the 
     Secretary has completed a conceptual design for that project. 
     Furthermore, if the estimated cost of completing a conceptual 
     design for the construction project exceeds $0.75 million, 
     the Secretary must submit a request to Congress for funds for 
     the conceptual design before submitting a request for the 
     construction project. In addition, the subsection allows the 
     Secretary to carry out construction design (including 
     architectural and engineering services) in connection with 
     any proposed construction project that is in support of a 
     civilian environmental R&D, scientific or energy research, 
     development, and demonstration, or commercial application of 
     energy technology program, project, or activity of the 
     Department if the total estimated cost for such design does 
     not exceed $0.25 million; if the total estimated cost for 
     construction design exceeds $0.25 million, funds for such 
     design must be specifically authorized by law.
     Sec. 2615. National Energy Policy Group Mandated Reports
       Subsection 2615(a) requires that upon completion of the 
     Secretary's review of current funding and historic 
     performance of the Department's energy efficiency, renewable 
     energy, and alternative energy R&D programs in response to 
     the recommendations of the May 16, 2001, Report of the 
     National Energy Policy Development Group, the Secretary shall 
     transmit a report containing the results of such review to 
     the appropriate congressional committees.
       Subsection 2615(b) requires that upon completion of the 
     Office of Science and Technology Policy and the President's 
     Council of Advisors on Science and Technology reviewing and 
     making recommendations on using the Nation's energy resources 
     more efficiently, in response to the recommendations of the 
     May 16, 2001, Report of the National Energy Policy 
     Development Group, the Director of the Office of Science and 
     Technology Policy shall transmit a report containing the 
     results of such review and recommendations to the appropriate 
     congressional committees.
     Sec. 2616. Independent Reviews and Assessments
       Section 2616 requires the Secretary to enter into 
     appropriate arrangements with the National Academies of 
     Sciences and Engineering to ensure that there be periodic 
     reviews and assessments of the programs authorized by this 
     Act, as well as the goals for such programs as established 
     under section 2004. Such reviews and assessments shall be 
     conducted at least every five years, and the Secretary shall 
     transmit to the appropriate congressional committees reports 
     containing the results of these reviews and assessments.

 III. Committee on Science Views on H.R. 4, Securing America's Future 
                       Energy (SAFE) Act of 2001


  Division B: Comprehensive Energy Research and Technology Act of 2001

     Sec. 2004. Goals
       The cost and performance-based goals in section 2004 guide 
     and unify the RD&D and commercial applications programs 
     authorized in this Act. The Secretary must refine and update 
     measurable cost and performance-based goals in furtherance of 
     the Act's purposes in section 2003 on a biennial basis. As 
     provided in section 2616, the Secretary must enter into 
     arrangements with the National Academies of Sciences and 
     Engineering for periodic reviews and assessments of the 
     programs in the Act and the goals established under section 
     2004.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

       In selecting applicants and project sites, the Secretary 
     should, consistent with subsection 2103(d)(1), give special 
     consideration to proposals that address environmental needs 
     in actual and potential Clean Air Act nonattainment areas 
     like the Washington, DC metropolitan region and in 
     communities seeking to meet zero air emissions goals, like 
     Santa Clara County, California.
       The Committee considers the United States Postal Service 
     (USPS) a ``partner'' or entity eligible for funding under the 
     alternative fuel vehicle program, The Committee commends the 
     USPS for taking a leadership role in the conversion of its 
     aging fleet to more environmentally sound electric vehicles. 
     Over the next five years, some 6,000 Long-Life Vehicles will 
     replace an aging fleet of trucks in southern California, New 
     York, and the Washington, DC metropolitan area. It is 
     estimated that over three million gallons of fuel will be 
     saved, and 170,000 tons of carbon dioxide will be removed 
     from the environment as a result of the effort. The Committee 
     encourages the USPS to continue this important procurement 
     and, in doing so, show leadership to other governmental 
     entities considering the advancement and deployment of 
     alternative fuel vehicles.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

          Subtitle B--Distributed Power Hybrid Energy Systems

       The Committee notes that the National Renewable Energy 
     Laboratory (NREL) currently performs certain duties of this 
     subtitle, especially with regard to performing and 
     integrating RD&D activities related to distributed power 
     hybrid systems, and expects NREL to continue and expand these 
     activities.
       The Committee encourages the Secretary to solicit proposals 
     from institutions of higher education for sharing costs of 
     acquisitions, installation, instrumentation, data 
     acquisition, and data analysis and reporting for building 
     cooling/heating and power systems, district energy systems, 
     and other distributed energy resources. In this regard, the 
     Secretary should consider, proposals emphasizing 
     installations using emerging technologies, developed with the 
     support of the

[[Page 15460]]

     Department, that offer energy efficiency and/or environmental 
     benefits. The Committee also encourages the Department to 
     require performance reports back from recipients of these 
     awards detailing steps taken, efficiency gains achieved, and 
     educational benefits realized. These reports would constitute 
     ``case studies'' demonstrating the viability of these 
     systems. Should the Secretary require such reports, funding 
     for the reporting should be included in the grant or 
     contract.
     Sec. 2123. Strategy, Sec. 2124. High Power Density Industry 
         Program
       Subsection 2123(b)(5) describes a RD&D and commercial 
     application program to be implemented as part of the 
     Distributed Power Hybrid Systems Strategy. Subsection 2124(b) 
     identifies areas that should be considered in carrying out 
     the program to improve energy efficiency, reliability, and 
     environmental responsibility in high power density 
     industries. Existing programs are already researching real-
     time performance monitoring, conserving and optimizing energy 
     systems, simulation and analysis of power systems, and 
     utilization of power generation byproducts in an 
     environmentally friendly manner. This work can become a base 
     for implementing the Distributed Power Hybrid Systems 
     Strategy and the High Power Density Industry Program. The 
     Secretary should rely on research and technology development 
     work already begun at State Centers of Excellence such as the 
     Center for Electric Power at Tennessee Technological 
     University to accelerate implementation of sections 2123 and 
     2124.
     See. 2125. Micro-Cogeneration Energy Technology
       Section 2125 is intended to help realize the potential of 
     cogeneration technology as a clean source of energy for a 
     variety of applications. Many believe the space heating 
     industry is often overlooked in the development of such 
     distributed cogeneration systems. The Committee believes 
     that, with further research and development, cogeneration of 
     electric power as a byproduct of building heating system 
     operation could provide significant environmental benefits at 
     low cost and high reliability and that the heating appliance 
     industry is uniquely positioned to provide reliable 
     electricity using environmentally friendly cogeneration power 
     with practical technology.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                     Subtitle D--Green School Buses

       The Committee directs the Secretary to ensure that grants 
     under this subtitle will demonstrate the use of alternative 
     fuel school buses and, as a result, lead to the replacement 
     of pre-1977 (model year) diesel and gas buses and pre-1991 
     (model year) diesel buses and, in limited situations (such as 
     in low income areas), the expansion of existing fleets using 
     conventional fuel buses with new, alternative fuel buses. In 
     providing grants under this subtitle, the Secretary shall 
     ensure that recipients of assistance certify that replaced 
     buses are crushed or otherwise appropriately disposed of in 
     accordance with law.

             Coordination of Alternative Fuel Bus Programs

       Division B contains various authorities relating to 
     alternative fuel buses, such as title I, subtitle A 
     (Alternative Fuel Vehicles), title I, subtitle D (Green 
     School Buses), section 2206(2) (fuel cell bus demonstrations 
     under the Spark M. Matsunaga Hydrogen RD&D Act of 1990), and 
     relating to transportation applications for fuel cells 
     (subsection 2461 (b)). The Committee intends that the 
     Secretary will coordinate implementation of the various 
     provisions to maximize their integration and effectiveness.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

            Subtitle F--DOE Authorization of Appropriations

       The Committee directs the Department to continue RD&D on 
     Smart Window technologies including electro-chromics and 
     other advanced technologies in energy-efficient windows, 
     doors, and skylights.
       The Committee is aware of the potential of optical/
     graphical programming for driving, controlling, and improving 
     virtually all types of electric motors. Successful 
     development of a simple, low cost, and generic solution for 
     the intelligent control of electric motors could 
     significantly improve the energy efficiency of electric 
     motors. Such technology could have tremendous impact on the 
     heating, ventilation, and air conditioning industry, among 
     others. In FY 2001, the DOE, through the Office of Industrial 
     Technologies, invested in several promising energy efficient 
     technologies, including the development of an optical 
     programming system for intelligent control of electric air 
     conditioning motors. The Committee strongly encourages the 
     Department to further increase its investment in optical/
     graphical programming technologies.
       The Committee is aware of various engine technologies, 
     including an axial piston OX2 engine, which have numerous 
     potential advantages over the design of conventional internal 
     combustion engines. The Secretary should, where appropriate, 
     support efforts by universities and the private sector to 
     continue, and expand, development and testing of technologies 
     that provide environmental advantages over current 
     conventional engines, such as improved power-to-weight 
     ratios, improved fuel efficiencies, and reduced air 
     emissions.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

     Subtitle G--EPA Office of Air and Radiation Authorization of 
                             Appropriations

     Sec. 2175. Limitation on Demonstration and Commercial 
         Applications of Energy Technology
       The phrase ``measurable benefits to the cost, efficiency, 
     or performance of the technology or process'' in section 2175 
     includes environmental considerations. The Committee does not 
     intend for this provision to curtail the demonstration or 
     commercial application of energy technologies that are 
     efficient, effective, and environmentally beneficial. The 
     Committee believes this interpretation regarding EPA 
     technologies should also apply to section 2604, relating to 
     DOE technologies.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

       Section 2206 amends the Spark M. Matsunaga Hydrogen RD&D 
     Act of 1990 to establish a fuel cell bus demonstration 
     program to address hydrogen production, storage, and use in 
     transit bus applications. The Committee recognizes that fuel 
     cell technology could significantly contribute to improving 
     the cost effectiveness and environmental impact of mass 
     transit options, particularly in municipal buses and in 
     shuttle buses such as those operating at large airports. 
     However, more research needs to be done to address a number 
     of issues related to this technology. This demonstration 
     program should specifically address all aspects of the 
     introduction of this new technology, including the following 
     components:
       (1) Development, installation, and operation of a hydrogen 
     delivery system located on-site at transit bus terminals.
       (2) Development, installation, and operation of on-site 
     storage associated with the hydrogen delivery systems as well 
     as storage tank systems incorporated into the bus itself.
       (3) Demonstration of use of hydrogen as a practical, safe, 
     renewable energy source in a highly efficient, zero-emission 
     power system for buses.
       (4) Development of a hydrogen proton exchange membrane fuel 
     cell power system that is confirmed and verified as being 
     compatible with transit bus application requirements.
       (5) Durability testing of the fuel cell bus.
       (6) Identification and implementation of necessary codes 
     and standards for the safe use of hydrogen as a fuel suitable 
     for bus application, including the fuel cell power system and 
     related operational facilities.
       (7) Identification and implementation of maintenance and 
     overhaul requirements for hydrogen proton exchange membrane 
     fuel cell transit buses.
       (8) Completion of fleet vehicle evaluation program by bus 
     operators along normal transit routes, providing equipment 
     manufacturers and transit operators with the necessary 
     analyses to enable operation of the hydrogen proton exchange 
     membrane fuel cell bus under a range of operating 
     environments.
       The Committee is aware that the Department of 
     Transportation is currently developing and funding a number 
     of Bus Rapid Transit (BRT) demonstration programs around the 
     country. The Committee believes that the BRT program is 
     structured in a way that would facilitate the execution of 
     this fuel cell bus demonstration program, as well as reducing 
     redundancy in interagency research, and recommends the 
     Secretary consider integrating this fuel cell demonstration 
     with existing BRT initiatives where there is local support to 
     do so.

                       TITLE II--RENEWABLE ENERGY

                         Subtitle B--Bioenergy

     Sec. 2225. Authorization of Appropriations
       Subsection 2225(b) authorizes funds for biofuels energy 
     systems. The Committee is aware of a proposal to establish a 
     biofuels processing facility in New York to convert cellulose 
     materials into levulinic acid for multiple applications. As 
     part of the proposal, the State University of New York 
     College of Environmental Science and Forestry would also 
     develop a Bioenergy and Bioproducts Technology Center, 
     focusing on biofuels from lignocellulosic biomaterial. The 
     Committee strongly encourages the Secretary to consider 
     providing substantial financial assistance for this biofuels 
     proposal.
       Subsection 2225(d) authorizes the Secretary to provide 
     assistance for an integrated rice straw project in Gridley, 
     California, to convert rice straw into ethanol, electric 
     power, and silica, and an ethanol production facility in 
     Maryland to convert barley grain into ethanol for use in 
     motor vehicles or other uses.

                       TITLE II--RENEWABLE ENERGY

            Subtitle D--DOE Authorization of Appropriations

     Sec. 2261. Authorization of Appropriations
       As pointed out in a recent National Research Council 
     review, geothermal energy research at the DOE may be 
     undervalued in

[[Page 15461]]

     light of the significant U.S. and international resource 
     base.
       DOE should consider establishing a national geothermal 
     research center with the resources necessary to lead an 
     expanded multi-laboratory geothermal research effort in the 
     years ahead. DOE should also continue to build upon its past 
     efforts to involve industry, university researchers and the 
     national laboratories in strategic planning for the 
     geothermal energy program as it moves this program forward.
       The Committee is aware of the promise of emerging 
     geothermal energy systems. Within the Department's budget for 
     geothermal research, the committee urges on-going support for 
     university research on enhanced geothermal systems. 
     University research programs, such as the Energy & Geoscience 
     Institute (EGI) at the University of Utah and the 
     ``Geothermal of the West'' program, offer the promise of 
     tapping into under-utilized geothermal resources. This 
     program has specific relevance for electrical power in the 
     West, including the Great Basin, Northern California Coast 
     and Cascade Range. Continued investment by DOE in the 
     research into these promising geothermal systems may 
     dramatically reduce dependence on other energy sources, and 
     improve the sustainability of existing geothermal energy 
     systems.
       The Committee is aware of the capabilities of Texas 
     Southern University's (TSU) Photovoltaic Laboratory, which 
     has experience in demonstrating the potential of using 
     commercially available photovoltaic equipment to generate 
     electric power for electrically isolated applications in the 
     small commercial sector. The Committee urges the Department 
     to consider using the capabilities of the TSU laboratory in 
     testing and demonstrating components in the R&D phase as well 
     as those already commercialized.
       Subsection 2261(b) directs the Secretary to carry out a 
     research program, in conjunction with ``other appropriate 
     Federal agencies'' on wave powered electric generation. The 
     Committee intends the term ``other appropriate Federal 
     agencies'' to mean the Office of Naval Research.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

     Sec. 2303. Department of Energy Program
       The Committee is aware of concerns within the university 
     nuclear research reactor community that DOE may be 
     considering downscaling its support for numerous university 
     reactors. The Committee's authorization of Nuclear Education 
     Programs stands as a strong signal of our desire to see the 
     Department continue to maintain, and even expand, its support 
     of the existing research reactor infrastructure. Institutions 
     such as the University of Utah Nuclear Engineering Program 
     run robust nuclear research reactor centers. Without their 
     involvement, and the maintenance of their reactor 
     infrastructure, necessary expertise on nuclear safety and 
     storage would be lost to the Western region, at the exact 
     time that nuclear waste products may arrive within the 
     region. The Committee believes that a balanced approach to 
     nuclear power must include on-going support for nuclear 
     research reactors throughout the various regions of the 
     United States.

                        TITLE IV--FOSSIL ENERGY

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

       Subtitle C of title IV, the Natural Gas and Other Petroleum 
     Research, Development, and Demonstration Act of 2001, 
     authorizes a new, ten-year program at the Department for 
     research, development and demonstration of ultra-deepwater 
     natural gas and other petroleum exploration technologies. For 
     purposes of this program, ultra-deepwater is defined to be in 
     excess of 1,500 meters, or approximately 5,000 feet, below 
     the surface of the ocean. The Committee is hopeful that this 
     technology will enable the U.S. to increase the supplies of 
     oil and gas from the middle and western Gulf of Mexico and 
     other areas already open to drilling.
       The Department is to carry out the program through a non-
     profit Research Organization. The Committee based this model 
     on the highly successful example of SEMATECH, which guided 
     jointly-funded efforts of the Department of Defense and the 
     semiconductor industry.
       The Committee intends that the Secretary exercise 
     continuing oversight over the Research Organization. It is 
     the Secretary's responsibility to ensure that the public 
     interest is being served by the Research Organization's 
     projects, that the projects are making the desired technical 
     progress, and that the public's money is being properly 
     spent. The Act requires that the Secretary receive and review 
     a specific research plan from the Research Organization each 
     year, and allows the Secretary to withhold the Research 
     Organization's funding for the year until the research plan 
     is satisfactory. The Act also requires annual audits by an 
     independent, outside auditing firm. Such audits were also 
     required of SEMATECH.
       The Act provides specific allocations for each of the types 
     of activities enumerated. However, in running the program, 
     the Secretary may find that these allocations are preventing 
     the most efficient and effective expenditure of funds. The 
     Secretary should notify the Committee if the allocations 
     prove problematic.
       The Act requires that all the projects undertaken under 
     this program have among their major goals the improvement of 
     safety and the limiting of environmental impacts. The 
     Committee expects the Secretary to carefully monitor the 
     program to ensure that safety and environmental impacts are 
     specifically addressed in the projects funded through the 
     Research Organization.
       This program of RD&D would only be applicable in certain 
     areas. Section 2443 prohibits activities through the RD&D 
     provisions of this Act or through any new technologies 
     developed under this section (or any other part of subtitle 
     C) in any offshore areas that are currently under federal 
     moratoria, such as areas off the coasts of California or 
     North Carolina.

                        TITLE IV--FOSSIL ENERGY

                         Subtitle D--Fuel Cells

       The Committee notes that three separate sections of the 
     bill authorize fuel cell RD&D and commercial application: 
     section 2143(c) pertaining to fuel-cell school buses, section 
     2206(2) pertaining to fuel cell bus demonstration programs, 
     and section 2461 pertaining to fuel cells. The Committee 
     intends that the Secretary will coordinate implementation of 
     these three provisions to maximize their integration and 
     effectiveness.
       The Committee also recognizes that local organizations, 
     such as the Houston-Galveston Area Council, are well equipped 
     to assist the Federal government in demonstrating the 
     benefits from research on fuel cell technologies used for 
     low-emission mass transit vehicles.

                            TITLE V--SCIENCE

            Subtitle E--DOE Authorization of Appropriations

       The Committee is concerned about practices employed by the 
     Department to enforce security at DOE scientific laboratories 
     funded under this section. The Committee notes that the 
     perception of racial profiling may have fostered a hostile 
     work environment and may be discouraging certain employees 
     and potential employees from working at DOE facilities. The 
     Committee is concerned that such loss of talent at DOE would 
     endanger DOE's missions to remain technologically competitive 
     and to protect national security.
  Mr. Chairman, these provisions reflect a balanced, bipartisan 
comprehensive approach to energy policy. They significantly increase 
the Nation's investments in R&D, on conservation and renewable energy 
sources, two fundamental public needs that are unlikely to be 
adequately addressed by market forces alone. At the same time, we 
continue and enhance our investment in research in oil, gas, coal, and 
nuclear power. We do so in a responsible way.
  I am pleased that the bill includes two measures I introduced, one to 
promote the use of alternative vehicles in general, and the other to 
promote the use of alternative fuel school buses in particular. These 
programs will both demonstrate the viability of hybrid electric, 
natural gas, and ultra-clean diesel technologies and help lower their 
cost in the marketplace.
  Many other Members of Congress on our committee on both sides of the 
aisle have contributed to portions of the bill, but I want to 
especially draw attention to the ultra-deep oil drilling research 
supported by our ranking member, the gentleman from Texas (Mr. Hall), 
the biofuels section introduced by our Subcommittee on Energy chairman, 
the gentleman from Maryland (Mr. Bartlett), numerous sections promoting 
clean energy supported by our Subcommittee on Energy ranking member, 
the gentlewoman from California (Ms. Woolsey), nuclear science 
provisions brought to us by the gentlewoman from Illinois (Mrs. 
Biggert), and the hydrogen provision sponsored by the gentleman from 
California (Mr. Calvert). That is just the beginning of a long list of 
contributors. This is a bipartisan team effort.
  I also want to draw attention to division E, which includes clean 
coal provisions worked out in arduous negotiations with the Committee 
on Energy and Commerce. I want to thank the gentleman from Louisiana 
(Chairman Tauzin) and the gentleman from Texas (Mr. Barton) and the 
ranking members, the gentleman from Michigan (Mr. Dingell) and the 
gentleman from Virginia (Mr. Boucher), and their staffs for their 
cooperation in reaching these agreements. We all agreed to put 
jurisdictional claims aside for the moment to have the tough decisions 
and discussions necessary to come up with a good program.
  I have to say though that those discussions were made more difficult 
by the behavior of the coal industry, which continues to display the 
same

[[Page 15462]]

sort of sense of entitlement that has made past clean coal programs 
questionably productive. That is why in this program we have strict 
environmental and financial standards, to ensure that the projects we 
fund truly need a taxpayer subsidy; that they will result in marketable 
advances in technology; and that those technologies will result in real 
improvements in efficiency and emissions.
  Most importantly, we require that at least 80 percent of the money be 
spent on gasification technology, which, among its other attributes, 
provides the best chance of preventing carbon dioxide, the leading man-
made greenhouse gas, from escaping into the atmosphere.
  In fact, throughout the Committee on Science portions of the bill, we 
are cognizant of the very real threat of global climate change, and we 
worked to ensure that our Nation's energy policy takes climate change 
and other environmental issues into account.
  I wish that were true of every portion of H.R. 4, but it is not. That 
is why I oppose the bill in its current form, and I will vote against 
it if it is not amended. I will be supporting two key amendments. Let 
me just speak about them for a moment.
  If we are serious about reducing our dependence on foreign-source 
oil, and we have to be serious about that, if we are serious about 
protecting our environment, and that is of the highest priority, if we 
are serious about conserving energy, and if we are serious about 
helping the consumer, then we must pass the Boehlert-Markey amendment 
to raise corporate average fuel economy standards.
  H.R. 4 takes the smallest of steps in the direction of raising CAFE 
standards, far smaller steps than the National Academy of Sciences says 
are possible. We do not need a fig leaf CAFE provision that will still 
leave us exposed to oil shortages, high gas prices and environmental 
degradation. We need a real, feasible moderate CAFE increase, and that 
is what the Boehlert-Markey amendment would provide.
  Let me point out that the previous speaker said if we go too fast, 
too far, too soon, we will, and then he outlined some concerns. We are 
not going too fast, we are not going too far, we are not going too 
soon. We have come up with a reasonable standard, supported by the 
documentation of the National Academy of Sciences.
  Mr. Chairman, I urge the passage when we get to those amendments.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HALL of Texas. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. HALL of Texas. Mr. Chairman, I rise, of course, in support of 
H.R. 4, aptly termed the Securing America's Future Energy Act of 2001.
  The Committee on Science has worked hard and in a very highly 
cooperative fashion, I think, to report a comprehensive bill that 
authorizes existing energy research and development programs of the 
Department of Energy and authorizes new programs to meet the 
challenging research needs of this Nation.
  I think the committee has done a good job. They certainly have 
recognized that we cannot put all of our eggs in one basket. We need to 
pursue research and development activities in energy conservation and 
energy efficiency and renewable energy technologies, as well as in 
fossil fuel energy and nuclear energy programs. We need them all. In 
short, we need to support these applied research programs, which we 
know are the basic energy research programs of the office of science.
  I think we have been generous in funding the program at the National 
Laboratories and colleges and universities throughout the Nation that 
are engaged in energy research.
  Before yielding time to others, I want to take the opportunity to 
thank this good chairman, the gentleman from New York (Mr. Boehlert), 
for his interest in working with us to craft a bill that is supported 
by all the members of the committee. I think that is very unusual for a 
chairman. That does not happen very often here, but it has happened in 
our committee. We have worked together.
  I thank also the staff of the committee for their tireless efforts in 
putting together the kind of bill from the Committee on Science that we 
should all feel very proud to support.
  Finally, thanks also to the members of the committee for their 
suggestions and their contributions and their willingness to work on 
the committee's bill.
  Mr. Chairman, I yield 2 minutes to the gentlewoman from California 
(Ms. Woolsey), the ranking member of the Subcommittee on Energy, Ms. 
Woolsey.
  Ms. WOOLSEY. Mr. Chairman, I thank the gentleman for yielding me 
time, and I thank the gentleman for getting the pronunciation of my 
name right.
  As the ranking member on the Committee on Science's Subcommittee on 
Energy, I was pleased that the gentleman from Texas (Mr. Hall) and the 
gentleman from New York (Mr. Boehlert) led the way so that the 
Committee on Science was able to report out a bill that accomplishes 
much of what I consider important to bring our country's energy policy 
into the 21st century. In fact, the Committee on Science bill reflects 
my push for aggressive R&D goals and funding levels for all renewable 
energy sources. I appreciate the chairman working with me on this 
shared priority. Unfortunately, this bipartisan model did not take root 
in the final bill.
  It is no surprise to me that in this Chamber we have a variety of 
visions on what our energy future should look like, but there are 
points where the people of this country know what is best. And we ought 
to look at them to be our leaders. For example, many in my district 
share in the Nation's opposition to drilling for oil in ANWR. They 
consider it outrageous that drilling in this area is even included in 
this legislation.
  Americans around the country also cringe when they learn that this 
bill lines the pockets of the fossil fuel and nuclear industries, 
making these industries, as this bill reflects, our number one 
priority. It is not appropriate that these industries should be our 
number one priority, when we know that our focus must be to reduce 
reliance on fossil fuels and expensive, dangerous nuclear energy. 
Instead, we should be investing in renewable, safe, and efficient 
energy sources.
  Despite massive financial and scientific investments--not to mention 
a new PR campaign--the facts about nuclear power are unchanged. It's 
dangerous, expensive and has not delivered on decades-old promises of 
energy security and independence.
  While the nuclear industry claims that nuclear power is safe, the 
fact remains that people are skeptical--especially if a plant or 
disposal site is in their backyard, or nuclear waste is transported 
through their community.
  Americans want, need and deserve a smart energy policy that will take 
us into the 21st century--not a bill that continues down the path we've 
traveled for the last 100 years--a path that has led to global warming 
because of our overdependence on fossil fuels. That's why I can't vote 
for this energy bill.

                              {time}  1330

  Mr. BOEHLERT. Mr. Chairman, I proudly yield 1 minute to the 
gentlewoman from Illinois (Mrs. Biggert), a valuable member of the 
committee.
  Mrs. BIGGERT. Mr. Chairman, I rise today to commend all who have 
worked on H.R. 4, the Securing America's Future Energy Act. A national 
energy policy is long overdue; and this bill is a step in the right 
direction, and we need to include all sources of energy in this bill.
  As a Member of the Committee on Science, I was very pleased that the 
bill our committee reported included provisions to strengthen nuclear 
research and nuclear science and engineering programs at America's 
universities and colleges. Fewer Americans are entering this field and 
even fewer institutions are left with the capability to train them. 
Current projections are that 25 to 30 percent of the nuclear industry's 
workforce and 76 percent of the nuclear workforce at our national 
laboratories will begin to retire in the next 5 years.
  Nuclear science and energy engineering in the United States is a 50-
year success story that has been written by

[[Page 15463]]

some of the brightest minds the world has ever known. America has truly 
been blessed as the world leader in this area, and this bill assures we 
maintain our leadership.
  Mr. Chairman, I urge my colleagues to support this bill.
  Mr. HALL of Texas. Mr. Chairman, I yield 1 minute to the gentlewoman 
from California (Ms. Lofgren).
  Ms. LOFGREN. Mr. Chairman, I want to salute the chairman and the 
ranking member of the committee for working together as a bipartisan 
team. The portion of this bill that came out of the Committee on 
Science is pretty darn good. It has a balance of conservation and 
renewable energies, and I am very proud and satisfied with it. The 
Fusion Energy Sciences Act was also included and, for our planet, it is 
going to be key in the long run.
  The problem in the bill is the things that did not come from the 
Committee on Science. Here is what is wrong: It provides no help for 
California to collect the $9 billion that we are owed by out-of-state 
energy providers; it lacks protection for oil drilling in the Arctic 
National Wildlife Refuge; it does not increase the CAFE standards for 
motor vehicles.
  The bill that did not go through the Committee on Science is short on 
vision and long on special interests. With over $36 billion in tax 
breaks to fat cats, the United States is going to have to borrow the 
money to give these tax breaks. So if there is a Texas equivalent to a 
Bronx cheer, that is what the President is giving to California once 
again.
  Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Rohrabacher).
  Mr. ROHRABACHER. Mr. Chairman, I rise in strong support of President 
Bush's comprehensive energy legislation. In California, we are on the 
edge of an economic disaster because for decades our State has turned 
down every effort to develop oil and natural gas resources, not to 
mention nuclear power, of course.
  The President's bill is a positive bill. It has provisions in it for 
conservation and, yes, my colleague is right, we in the Committee on 
Science have participated in this process, because this bill also 
contains provisions for developing alternative energy resources.
  But most important, this bill enables us to increase the supply of 
oil and natural gas in the United States of America. We have no reason 
to be ashamed of that. Of course, there will never be an energy bill 
that is good enough for the fanatic environmentalists who oppose us 
every time we try to increase our Nation's oil and natural gas 
supplies.
  This bill will help us have more oil and natural gas, take us off of 
foreign dependency and ensure American prosperity.
  Mr. Chairman, I support the President's comprehensive bill.
  Mr. HALL of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the 
gentleman from Pennsylvania (Mr. Hoeffel).
  Mr. HOEFFEL. Mr. Chairman, I thank the gentleman for yielding time.
  Mr. Chairman, for 25 years, this country has not permitted the 
commercial reprocessing of spent nuclear fuel. We have said that the 
reactor waste generated around this country at reactors shall not be 
reprocessed, for the very sound reason that the reprocessing of this 
reactor waste generates plutonium, and plutonium is the key ingredient 
in nuclear weapons. And if we are generating plutonium through 
reprocessing, that is going to threaten our efforts to stop the 
proliferation of weapons around the world and to keep the supply of 
plutonium away from rogue nations and dictators.
  Now, this bill very quietly reverses that 25-year policy. It says 
that we shall now have research and development spending on what they 
call advanced fuel recycling technology. That is reprocessing. That is 
taking spent reactor waste and reprocessing it, creating plutonium, 
which threatens our nonproliferation regime around the world.
  There was very little debate on this in the Committee on Science, and 
no consideration on the floor. The rule did not permit an amendment by 
the gentlewoman from California (Ms. Woolsey) that would have allowed a 
straight up-or-down vote.
  Mr. Chairman, this is not just an issue for our national energy 
policy; it affects our international relations as well. And there is no 
way, with so little debate and so little public notice and no hearings, 
that we should be approving this. Vote no.
  Mr. BOEHLERT. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan (Mr. Smith).
  Mr. SMITH of Michigan. Mr. Chairman, as a former member of the 
Presidential Oil Policy Commission, I have seen how energy policy 
mistakes can contribute to supply disruptions and high prices.
  This legislation supports my vision for a broad portfolio of energy 
options by making traditional sources of energy cleaner, by researching 
and making alternative and renewable sources of energy more available, 
and by educating the next generation of scientists.
  The Committee on Science has contributed to this legislation by 
authorizing the research and development programs that will help 
increase supplies of clean, renewable, and affordable energy. Coal is 
an abundant domestic source of power that plays a truly critical role 
in electricity generation in States like Michigan. However, we do need 
to make it cleaner and more efficient, and this legislation's 
provisions for clean coal technology point us in that direction.
  Nuclear power, which accounts now for 28 percent of the Nation's 
electricity, is a critical energy source that produces nearly zero 
greenhouse gas emissions. However, we are in danger of losing 
international leadership in nuclear technologies, and that is why I 
support the nuclear R&D provisions in this bill.
  Mr. Chairman, this is a good bill that will ensure that we have the 
energy needed to power the economic growth of the future.
  Mr. HALL of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the 
gentleman from California (Mr. Farr).
  Mr. FARR of California. Mr. Chairman, I thank the gentleman for 
yielding time.
  I rise today to compliment the committee that is before the floor 
today. The Committee on Science in this House did a tremendous job of 
designing a bill that really meets the science needs of America on 
energy. This bill is being used as the carrot tied to a stick, which is 
tied to a very ugly vehicle behind. I want to compliment the members of 
the Committee on Science on both sides of the aisle for producing a 
real substantive bill. Unfortunately, the rest of the bill that is 
incorporated with is one that we cannot support.
  I look at this bill and what I see in it is whoever wrote the whole 
big package had one thing in mind, and that is that they were looking 
at the price, without understanding the value. So this bill addresses 
the price of everything and the value of nothing.
  The bill knows the price of rewards for special interests. They put 
those special interests in perspective by giving them a $36.4 billion 
tax break in this bill. That is equivalent to what 9.7 million 
Americans in 1998 paid in taxes.
  The cost of this bill is in the value to the environment. This bill 
says drill, drill, drill wherever oil may be. If we had oil under this 
Capitol, I am sure there would be proposals to drill for oil under the 
Capitol and under the Supreme Court and under the Library of Congress. 
This bill costs California ratepayers, who are not allowed to debate on 
the issue of rebates from obscene costs. This bill, in totality, is a 
bad bill.
  Mr. BOEHLERT. May I ask the Chair how much time is remaining?
  The CHAIRMAN pro tempore (Mr. Linder). The gentleman from New York 
(Mr. Boehlert) has 1\1/2\ minutes remaining.
  Mr. BOEHLERT. Mr. Chairman, I do not mean to challenge the umpire's 
call, that is cause for automatic ejection in baseball, but our 
scorecard says 2 minutes. Can the Chair look at those numbers again?
  The CHAIRMAN pro tempore. Our scorecard does not. Ours says the 
gentleman from New York has 1\1/2\ minutes

[[Page 15464]]

remaining, and the gentleman from Texas has 2 minutes remaining.
  Mr. BOEHLERT. Mr. Chairman, I do not want to be ejected, but does the 
gentleman from Texas have 30 seconds he could yield to me?
  Mr. HALL of Texas. Mr. Chairman, I yield 30 seconds to the gentleman 
from New York (Mr. Boehlert).
  The CHAIRMAN pro tempore. The gentleman is willing to do that.
  Mr. BOEHLERT. So now I can say on my scorecard we have 2 minutes?
  The CHAIRMAN pro tempore. The gentleman can do that.
  Mr. BOEHLERT. And we still have an affection for the umpire. I thank 
the Chair.
  Mr. Chairman, I yield 1 minute to the gentleman from Kansas (Mr. 
Akin).
  Mr. AKIN. Mr. Chairman, I rise to support the clean coal power 
initiative in division E of H.R. 4. It is an effective and important 
initiative because it is going to give us environmentally friendly 
electricity at a reasonable cost and for decades to come.
  Coal comprises 85 percent of our fossil fuel resources. We have 
enough coal for 250 years of additional use. More than 50 percent of 
our current electricity comes from coal.
  Burning coal is our chief source of electricity, but by making it 
more efficient and by making it cleaner, we can improve the air 
quality. That is important to me, because we have air quality problems 
in the St. Louis area. This bill will do that.
  Already, we have made investments in coal technology over the last 30 
years that have reduced pollutants by 21 percent even though coal 
generation has tripled. Coal provides a clean, affordable and domestic 
energy source for us. This bill is very positive in cleaning that up 
and making it more reasonable.
  Mr. HALL of Texas. Mr. Chairman, I yield 1 minute to the gentleman 
from Guam (Mr. Underwood), the very capable delegate.
  Mr. UNDERWOOD. Mr. Chairman, I thank the gentleman from Texas for 
yielding.
  I want to draw attention to one part of this very large energy bill 
which draws attention to the insular areas and allows them to develop 
alternative sources and gives that additional emphasis.
  However, I am concerned about, under section 701, assessment of 
renewable energy resources, and section 702, renewable energy 
production incentives. There is a lot of attention drawn to solar 
power, there is attention drawn to geothermal, but there is no 
attention drawn to ocean thermal energy, which is a distinct 
possibility, particularly for those areas that are in the tropical 
zones.
  So I would like to ask the chairman of the Committee on Science to 
enter into a brief colloquy.
  Would the chairman be willing to work with us to consider inserting 
some language about ocean thermal energy into the assessment of 
renewable energy resources?
  Mr. BOEHLERT. Mr. Chairman, will the gentleman yield?
  Mr. UNDERWOOD. I yield to the gentleman from New York.
  Mr. BOEHLERT. Mr. Chairman, as my distinguished colleague knows, we 
are always very enthusiastic in our committee about alternative sources 
of energy, so the gentleman can be assured that both the gentleman from 
Texas (Mr. Hall) and I will work closely with the gentleman to address 
this.
  Mr. Chairman, I am pleased to yield 1 minute to the gentlewoman from 
Pennsylvania (Ms. Hart), a new but very valued member of the committee.
  Ms. HART. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  It is with pleasure that I stand up to support this energy bill. It 
contains a lot of different things; it is broad, it is all-
encompassing.
  The problems that we are looking to solve are not new ones. In fact, 
people in my constituency and probably all over the country have been 
calling their congressional Members about these for a number of years.
  But the problem of high gas prices, high electrical prices, high 
gasoline prices at the pump cannot be solved unless we have a 
comprehensive energy policy. That is what this bill does.
  Vice President Cheney came to my district to launch the discussion 
nationwide. It was very well received. People are very happy to hear 
that we finally are going to have a comprehensive plan. Advancements in 
technology are included in here: clean coal technologies, nuclear 
advancements, fuel cells, investigation of renewable energy sources 
such as biomass, wind energy, hydro energy. But conservation is a very 
large part of this, and it is very important that we all understand 
that it is everyone's responsibility to be part of that conservation.
  We all intend to work hard to get this passed. I am a big supporter 
of this, and I want to commend everyone who has been a part of making 
it happen.
  Mr. HALL of Texas. Mr. Chairman, I will close by thanking the 
committee. I would just like to go on record, though, as saying we do 
need to drill ANWR. It makes sense to drill ANWR. It does not make 
sense not to drill ANWR, because if we do not find the resources we 
have here in this country, we have to send our kids overseas to fight 
for energy when we have it right here.
  Japan was forced out into Malaysia by Franklin Roosevelt in 1939. We 
sent 450,000 kids to Kuwait. That was for energy. We did not need to do 
that. We need to take care of our children, and this is a bill that 
takes care of them and takes care of the country's energy needs for 
this Nation.
  Mr. Chairman, the U.S. will likely need to produce 45% more natural 
gas to meet growing demand and environmental goals in the next decade. 
A new, industry-led research, development and demonstration program is 
being established in this legislation to enhance and extend the natural 
gas and other petroleum resource base in areas where production is 
currently allowed by law and reserves are most prolific. These areas 
are largely in unconventional onshore gas fields, primarily in the 
Rocky Mountains and Southwestern United States, and the ultra-deepwater 
in the central and western Gulf of Mexico. Research, development and 
demonstration of technological capabilities in these provinces will 
improve the nation's capacity to meet incremental natural gas demand 
over the next twenty years in an economic, safe and environmentally 
responsible manner.
  Section 2441 of the ``Securing of America's Future Act of 2001'' 
(H.R. 4), ordered reported from the Committee on July 19, directs DOE 
to conduct long-term supply research and to establish a new industry-
led research, development and demonstration program. The Department 
will utilize the expertise of our nation's energy industry, 
institutions of higher education, public and private research 
institutions, large and small businesses and federal agencies to lower 
the cost, improve the efficiency and production of natural gas and 
other petroleum resources while improving safety and minimizing 
environmental impacts of this activity.
  The industry-led activities authorized by this legislation will be 
managed by an established 501(c)(3), tax-exempt research organization 
experienced in planning and managing programs in natural gas or other 
petroleum research, development and demonstration. The program is 
designed to ensure that the requirements of meeting near-term demand 
for natural gas supply will be conducted in the most efficient and 
cost-effective manner possible. This will require flexibility, 
unprecedented focus and input from industry, academia, and our national 
laboratories, and an acceleration of R&D activities. These goals can be 
best accomplished through an industry-driven effort, with key oversight 
provided by the Department of Energy, consistent with its stewardship 
role in energy policy and the use of public funds.
  The Department is directed to focus the industry-led activities 
authorized by this legislation on unconventional onshore natural gas 
and other petroleum resource research and development projects, 
individual deepwater research and development projects, and the 
development of new ultra-deepwater natural gas and other petroleum 
architectures. it will carry out programs of long-term research into 
new natural gas and other petroleum exploration and production 
technologies, such as methane hydrates; and environmental mitigation 
technologies for production from unconventional and ultra-deepwater 
resources, including carbon sequestration.
  All research, development and demonstration activities authorized by 
this legislation will be cost-shared by participants in the program.

[[Page 15465]]

The deepwater and ultra-deepwater research, development and 
demonstration provisions of this bill shall be exercised only in the 
central and western Gulf of Mexico in areas that are already leased or 
are available for leasing. No offshore areas that are currently covered 
under federal leasing moratoria will be affected.
  This program will be funded from loans from the Treasury to be repaid 
from revenues from ultra-deepwater natural gas and other petroleum 
leases currently available for lease that would otherwise not be sold, 
additional appropriations and 7.5% of federal natural gas and other 
petroleum lease income.
  I believe that a concentrated industry effort with support from the 
government will enable us to produce the tremendous natural gas 
resources that exist in the Gulf of Mexico sooner and at lower cost 
than a traditional government R&D program. The model for this program 
is SEMATECH, the government-industry consortium that was established 
for the semiconductor industry in the 1980s. By combining industry R&D 
efforts, the semiconductor industry was able to remain competitive with 
the Japanese--a competitive advantage that the U.S. has maintained. 
This has been responsible, at least in part, for the enormous 
technology-drive growth that the U.S. enjoyed through the nineties--and 
even at a lower growth rate today.
  These R&D models work and we should not be reluctant to employ them 
as needed. The government's interests are protected thorough recoupment 
provision in the legislation. These provisions provide for the 
repayment of government funds used to develop and demonstrate the 
successful technologies that emerge from this program. The recoupment 
provisions in the bill, combined with the additional royalties that 
will be collected on the natural gas production from these ultradeep 
structures will recoup the government's investment in this program many 
times over.
  It's a win-win for the government and the taxpayers: The government 
funding up front makes it possible for this high-risk research to be 
undertaken by industry, which will generally be matching the government 
outlays on a dollar for dollar basis. The needed gas supplies will be 
produced sooner and at a time when domestic natural gas production is 
declining and demand is rapidly increasing.

                              {time}  1345

  The CHAIRMAN. All time for the Committee on Science has expired.
  It is now in order under the rule for the Committee on Ways and 
Means, represented by the gentleman from California (Mr. Thomas) and 
the gentlewoman from Florida (Mrs. Thurman). Each will control 10 
minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, as we look at this tax component, it has been 
characterized today in a number of different ways.
  Our friends on the other side of the aisle like to talk about the 
enormous giveaway to special interests. I would like to point out that 
the special interests in the bill who get the major-appliance 
reductions for energy efficiency are the American taxpayers. Those who 
invest in their home in energy-efficient ways are also the special 
interests involved in this bill. If they buy a more fuel-efficient car, 
they get significant tax credits.
  I think Members will find that throughout this tax provision, 
individuals who seek conservation and alternate energy get rewarded for 
that behavior. That is one of the major special interests.
  The other area that I think needs to be emphasized that people do not 
talk about is under the heading of reliability. That actually gets the 
largest percentage of money, almost 39 percent in this tax structure, 
because we frankly need to deal with electric transmission lines. We 
need to deal with natural gas transmission lines. Then, once we develop 
the natural gas transmission lines for clean-burning natural gas, we 
need distribution lines.
  One of the difficulties, I think, that we forget about is that it is 
not just the switch on the wall. Our ability to function in a post-
industrial energy-efficient world requires significant investment in 
infrastructure. Even a transition from the highly regulated one that we 
are in in the area of electricity to a more deregulated one requires 
attention in the Tax Code.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. THURMAN. Mr. Chairman, I yield myself 4 minutes.
  Mr. Chairman, the chairman talked about some very wonderful things 
that are in this piece of legislation, but I have to say that the 
problem and regret is that earlier this year the congressional 
Republican leadership decided to enact a large tax reduction and did 
not reserve the resources for these other priorities. I believe they 
are important priorities.
  But as a result of that decision, and because this bill contains no 
revenue offsets, I believe that there is a substantial certainty that 
the tax reductions contained in the energy bill will be funded, at 
least in part, by raiding the Medicare and possibly the Social Security 
Trust Funds. Therefore, I cannot support this bill, and I would oppose 
it.
  Mr. Chairman, we are not the only ones saying this. Even a recent 
Republican memo on the surplus states that we are possibly already into 
the Medicare Trust Fund, and we are very close to touching the Social 
Security surplus in fiscal year 2003.
  When we did the markup of the charitable tax incentive bill the week 
before the Committee on Ways and Means approved an energy tax cut bill, 
the Committee on the Budget chairman, the gentleman from Iowa (Mr. 
Nussle), produced a letter that said that using economic projections 
from earlier in the year, there was enough of a surplus to support the 
charitable tax bill if no further tax or spending bills were ever 
enacted.
  When the committee considered the energy tax bill, no security letter 
from the Committee on the Budget was ever produced. Does this mean that 
there will not be sufficient surpluses to support the energy bill? I 
think we all know the answer is yes.
  Further, during the committee debate on the energy tax bill, when I 
asked how it is going to be paid for, I was told that there is a slush 
fund in the fiscal year 2002 budget resolution that is available on a 
first-come, first-served basis.
  Well, which one of the following priorities, then, will not be funded 
if they succeed in their current strategy of being first in line? I 
might add, many of these have been promised and debated.
  What about the $300 billion for a Medicare prescription drug benefit; 
the $134 billion from the Secretary of Defense, who states it is 
necessary just to maintain our current level of defense; the $200 
billion or $300 billion for defense modernization; $73 billion for 
agriculture; $6 billion for higher veterans benefits; the $14 billion 
that we did in reduction in the SEC fees; the $50 billion for promised 
health insurance; the $82 billion to fully fund the new educational 
bill, to all of which we have agreed; and $122 billion to extend 
expiring tax benefits; $119 billion for President Bush's remaining tax 
cuts in health insurance, long-term care, and housing; and $200 billion 
to $400 billion to address the AMT issue? There is $138 billion to end 
the tax cut sunsets in the last bill, and $13 billion for the 
charitable tax incentives just passed by this House.
  Mr. Chairman, we could have done something differently. We heard 
about this in the rules debate; but the fact of the matter is, there 
was a Democratic amendment that could have been brought to this floor 
that could have in fact taken care of both of these priorities which 
would have been offered by the gentleman from Massachusetts (Mr. 
Markey).
  He requested, but was denied by the Committee on Rules, this 
amendment, which would have paid for the energy tax provisions provided 
by the amendment and made the tax benefits contingent on a surplus 
outside of the Social Security and Medicare Trust Fund. By the way, 
that would not be the first time that we have voted on this floor to, 
in fact, make benefits contingent on surpluses outside of the Social 
Security and Medicare Trust Fund.
  So what might we do today? Instead of passing a fairly good energy 
package, one of many things that I believe and agree with, we are going 
to in fact allow the use of payroll taxes to pay for corporate tax 
relief.

[[Page 15466]]

  Mr. Chairman, I reserve the balance of my time.
  Mr. THOMAS. Mr. Chairman, it is my privilege to yield 1 minute to the 
gentleman from Oklahoma (Mr. Watkins), a member of the Committee on 
Ways and Means.
  Mr. WATKINS of Oklahoma. Mr. Chairman, I want to thank the gentleman 
from California (Chairman Thomas) and the gentleman from Louisiana 
(Chairman McCrery) for putting together the most balanced and 
comprehensive energy legislation that has been here in 3 decades, and I 
speak from experience; and this has more conservation and reliability 
in this bill, and some production, but the emphasis is on conservation 
and reliability.
  I was here in 1997 when President Jimmy Carter said we had an energy 
crisis of the moral equivalent to war. Some of us might remember that. 
There was a lot of conservation and also some renewable energy 
activity. It helped. But let me say, from that standpoint, we cannot 
conserve and we cannot just count on foreign sources to help us have a 
reliable source.
  This bill today does move us in a direction in the short term and in 
the long term in trying to have a reliable source of energy for this 
country. We need this bill. We must have this bill. If not, we are 
doing a disservice to our children and our grandchildren.
  Mrs. THURMAN. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from Michigan (Mr. Levin).
  Mr. LEVIN. Mr. Chairman, I thank the gentlewoman for yielding time to 
me.
  Mr. Chairman, when one adds to the oversized tax cut the slowing 
economy and the billions of dollars of unbudgeted spending for defense, 
education, and other priorities, this $33 billion grab bag of energy 
tax provisions, with no offsets to pay for them, four times more than 
the administration requested, is fiscally irresponsible.
  The Bureau of National Affairs reports today, this from an internal 
GOP memo, ``We are possibly already into the Medicare trust fund this 
year and every year through FY 05. We are very close to touching the 
Social Security surplus in FY 03.'' The Republicans believe that they 
can pull a Houdini trick, taking trust fund monies out of the lockbox 
without anybody seeing or catching them at the raid.
  I also want to urge the House to reject the Boehlert amendment on 
CAFE later today. The cure would be worse than the disease. That 
amendment is based on a very selective reading of an NAS report which 
particularly warns against forcing through a CAFE increase too quickly, 
saying, ``Technology changes require very long lead times to be 
introduced into the manufacturer's product line. Any policy that is 
implemented too aggressively has the potential to adversely affect 
manufacturers, their suppliers, their employees, their consumers.''
  This amendment of the gentleman from New York (Mr. Boehlert) is 
fundamentally flawed. It does not give the industry enough time to 
comply. The only way to meet the CAFE requirements of the Boehlert 
amendment would be for the manufacturers to close down entire vehicle 
lines. The Boehlert amendment would force the dislocation of American 
workers and job loss.
  Vote ``no'' on the Boehlert amendment. Because of what I have said, 
and others, regarding the tax provisions. Vote ``no'' on final passage 
of H.R. 4.
  Mr. THOMAS. Mr. Chairman, it is my privilege to yield 1 minute to the 
gentleman from Arizona (Mr. Hayworth), a member of the Committee on 
Ways and Means.
  Mr. HAYWORTH. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  Mr. Chairman, it is rather curious to note that if we could have 
converted into energy some of the fear and smear being employed here, 
we would have enough energy for the entire next century and well 
beyond.
  Mr. Chairman, every dollar that comes in for Medicare is going to be 
used for Medicare. What we have here is a comprehensive energy bill. We 
concentrate here on tax relief and tax incentives to make sure we work 
on new technologies, on conservation, and on exploring for the energy 
we need.
  While others want to play a game of wolf and fear, we have a 
comprehensive, reasonable, rational response. It is easy to be on all 
sides of the issue, as we often hear from our friends in the 
opposition.
  But still, we have the invitation: join us and work together, because 
the stakes are too high to bury our heads in the sand or pull the fire 
alarm falsely.
  Mrs. THURMAN. Mr. Chairman, I yield 2 minutes to the gentleman from 
Washington (Mr. McDermott).
  Mr. McDERMOTT. Mr. Chairman, in January when George II was appointed 
by the Supreme Court, the oil dynasty took this country over again. The 
real issue of the tax cut, that was a minor issue, but today is a big 
deal. We have had five sets of elves working in five different places, 
never talking to each other, with half-day notice when they are going 
to have a bill, who put together something which we gave to the 
Committee on Rules, and last night, in the middle of the night, they 
put it out here on the floor.
  They were offered 143 amendments. They chose 16, of which three were 
from the Democrats, as though the Democrats had nothing to say about 
this whole thing.
  Mr. Chairman, we have had an interesting crisis created in this 
country in energy, so we have to have an energy policy. So we have an 
energy policy in process, but then the prices go down.
  The Wall Street Journal yesterday told the truth: ``Major oil 
companies struggle to spend huge hoards of cash. Shell oil is sitting 
on $11 billion they do not know what to do with. Yet, in this bill, we 
have to give them $12 billion more.''
  Bad enough as that is, we are not even paying for it. This is not a 
real bill; this is a PR piece for Republicans going home to their 
districts to say, We passed a comprehensive energy bill in the House of 
Representatives. They will all do it; they will each pick a piece they 
like. The folks back home should understand, none of this is paid for. 
It is all smoke and mirrors.
  When we come back in the fall, I do not know what they are planning 
to knock out to come up with $33 billion more. They threw a few things 
in for solar and a few things here and there, and they are going to 
stand up and tell us all about the electric cars and all this stuff. 
But the bulk of it, $20 billion out of the $33 billion, goes to the 
guys who have hordes of cash they do not know what to do with, and they 
are driving our electric prices on the west coast out of sight.
  Mr. Chairman, when are we really going to have a discussion? Maybe we 
will have to get a new President who is not appointed.
  Mr. THOMAS. Mr. Chairman, it is my pleasure to yield 1 minute to the 
gentlewoman from Washington (Ms. Dunn), a member of the Committee on 
Ways and Means, so we can get a slightly different perspective on this 
issue.
  Ms. DUNN. Mr. Chairman, I am very happy that the bill we are debating 
today promotes energy conservation and efficiency. These elements are 
critical, especially in my home State of Washington, where many 
continue to suffer from the high cost of utility bills.
  In times of energy supply shortages that result in retail rate 
increases, it is the role of the Government to empower families and 
businesses around America with the information that they need to make 
choices regarding their power usage.

                              {time}  1400

  As public servants, we can encourage efficiency by providing 
incentives for the use of ``smart meters,'' in this case for the use of 
smart meters installed at the cost to the company in many homes 
throughout my district. These are high-tech devices that tell consumers 
what time of day is most cost effective to flip on the switch to run 
their washers, their dryers, their sprinkler systems.
  Smart meters serve as evidence that conservation does not need to be 
dictated by the Federal Government, but

[[Page 15467]]

rather can be learned, and with the right motivation and structure, 
conservation can work. I want to thank the chairman, the gentleman from 
California (Mr. Thomas), for including the smart meter provision I 
offered as part of this comprehensive bill and urge its passage.
  Mrs. THURMAN. Mr. Chairman, may I inquire as to how much time remains 
on each side?
  The CHAIRMAN pro tempore Mr. Linder). The gentlewoman from Florida 
(Mrs. Thurman) has 2 minutes remaining and the gentleman from 
California (Mr. Thomas) has 5\1/2\ minutes remaining.
  Mr. THOMAS. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan Mr. Camp), a member of the Committee on Ways and Means.
  Mr. CAMP. Mr. Chairman, I thank the chairman for yielding me this 
time, and I rise in support of H.R. 4 because this is a balanced and 
comprehensive energy strategy for our Nation.
  I would just like to point out two important initiatives in this 
bill. The first is an initiative that would help to encourage the 
collection and utilization of landfill gases and energy resource. A 
medium-sized landfill can produce enough energy to meet the annual 
electrical needs of 3,000 homes. I believe our Nation should harness 
the energy resources that are sitting in the backyards of most of our 
communities rather than allow them to be wasted.
  The second proposal is the CLEAR Act, which would help provide 
consumers tax incentives for the purchasing of advanced technology and 
alternative fuel vehicles. These incentives are positive steps that can 
be taken today to increase fuel economy of new vehicles. What is 
important about this provision is that it will allow the consumer to be 
part of the decision.
  All major auto makers that sell cars in the United States have 
alternative and hybrid fuel vehicles available. This will make our 
country the winner by providing the opportunity to pull these new 
exciting technologies into the marketplace, and I urge support for this 
legislation.
  Mr. THOMAS. Mr. Chairman, I yield such time as she may consume to the 
gentlewoman from Connecticut (Mrs. Johnson).
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I support this bill; and I 
particularly want to recognize its understanding of the importance of 
renewable, clean sources of energy for the future.
  I firmly believe that a national energy policy must include promotion 
of alternatives to traditional energy sources. Doing so will reduce our 
reliance on imported oil, give consumers greater choice, stabilize 
energy prices, and benefit the environment at the same time. The reason 
our constituents find themselves faced with out-of-control heating oil 
and fuel prices is because our nation has no long-term energy policy.
  I am pleased that the tax portion of this package includes my 
legislation to promote the use of fuel cells which remove the hydrogen 
from fossil fuels to create energy with virtually no pollutants. They 
function must like a battery except fuel cells do not require 
recharging and are far more efficient than a combustion engine or power 
plant.
  H.R. 4 proposes a fuel cell tax credit for five years to create a 
market incentive for this revolutionary technology, which is reliable 
and will provide economic and environmental advantages to traditional 
fuel sources. The bill will accelerate commercialization of this 
technology by providing a $1,000 per kilowatt credit for efficient, 
stationary fuel cell systems.
  Stationary fuel cells capable of running 24 hours a day, seven days a 
week for five years with only routine maintenance are currently in 
operation today. As a distributed generation technology, fuel cells 
address the immediate need for secure, efficient, clean energy 
supplies, while reducing grid demand and increasing grid flexibility.
  First used by NASA in the space program, they are now in hospitals, 
schools, military installations, and manufacturing facilities and may 
be available for homeowners by the end of this year. Although these 
early products have proven energy efficiency and environmental 
advantages, help in accelerating volume production is essential in 
realizing lower prices for consumers and the full benefits of fuel 
cells.
  I am also a strong supporter of another provision included in this 
energy package to encourage the development of projects that capture 
landfill gas (LFG) and use it as an alternative energy source. LFG is 
produced as waste decomposes in landfills that serve our communities. 
LFG projects capture and use the gas to generate electricity or 
directly as an alternative fuel.
  H.R. 4 would extend the Section 45 tax credit for wind energy, 
closed-loop biomass, and poultry waste to LFG projects. It is estimated 
that an additional 700 landfill gas-to-energy projects could be made 
economically feasible with such an incentive. Helping to bring these 
projects online would help the nation save more than 40 million barrels 
of oil annually. With that kind of potential, we must ensure that we 
are tapping into LFG, which is available in nearly every community in 
America.
  It is technologies like fuel cells and landfill gas projects that 
will help us decrease our dependence on foreign oil, conserve existing 
oil supplies, and reduce air pollution.
  Mr. THOMAS. Mr. Chairman, I yield 3 minutes to the gentleman from 
Louisiana (Mr. McCrery), the chairman of the Subcommittee on Select 
Revenue Measures, one of the significant hands and minds that allowed 
us to put this package together.
  Mr. McCRERY. Mr. Chairman, I thank the chairman for yielding me this 
time and for the role he played in putting this excellent package 
together.
  Mr. Chairman, first of all, let me just say that any speaker here on 
the floor today who says that this bill or any other bill that the 
Congress passes raids the Social Security trust fund is either 
intentionally misleading the public or is exhibiting a lack of 
understanding of the Social Security trust fund, the Medicare trust 
fund. The fact is that is not true, and I hope that we will get off of 
that.
  But with respect to the bill before us, Mr. Chairman, it is clear 
that our country continues to struggle with the fact that our domestic 
energy production does not meet our demand. The time is now for 
Congress to pass an energy policy that will address present needs and 
secure a stable supply of power for the future, and this bill 
accomplishes those goals.
  As chairman of the House Committee on Ways and Means Subcommittee on 
Select Revenue Measures, I had the opportunity to help find energy 
solutions through our Tax Code. My subcommittee held three hearings on 
the issue, giving us an opportunity to hear from the administration, 
Members of Congress, and many other interested parties.
  At our second hearing, I outlined several principles which should be 
adhered to in formulating a national energy tax policy. First and 
foremost, our complex problems require a balanced solution. We have 
heard that here today: we need balance. We have it in this bill, in the 
tax portion of the bill. Conservation, renewable, and alternative 
fuels, and expanded production of traditional fuels, such as oil and 
gas and coal, must all be part of the solution. The portion of the 
energy bill passed through the Committee on Ways and Means is faithful 
to that goal of a balanced solution.
  Conservation plays a key role, with expanded incentives for solar 
power, fuel cells and clean cars. Alternative fuels receive a boost, 
with new incentives to produce electricity from biomass and landfill 
gases. This legislation also encourages production through 
modifications to the existing section 29 program, which has been very 
successful in stimulating the production of oil and gas from tight 
sands and other difficult areas of production.
  At our hearings, the committee heard how bottlenecks in distribution 
were a significant problem. A stable supply of energy is only of use if 
we can get it to where it is needed when it is needed. Accordingly, the 
bill before us today helps utilities spin off their transmission assets 
to ensure they are used as efficiently as possible. In addition, we 
provide faster depreciation for oil refining properties and for gas 
distribution lines. Commonsense things to get the power to the people.
  Our energy tax policy should be sensitive to the environment also. 
Several provisions of the Ways and Means energy legislation reflect 
that. It assists refiners in coping with the cost of producing low-
sulfur fuel. It reduces taxes

[[Page 15468]]

on diesel water emulsions, which have substantially lowered emissions 
than traditional diesel fuel. And it helps cover the cost of installing 
new technologies which will dramatically reduce the emissions from 
coal-fired plans.
  For too long Congress has viewed energy policy as a dilemma: produce 
or conserve; the economy or the environment. We do not have to have it 
one way or the other. We can do both. This bill does that. Vote for it.
  Mrs. THURMAN. Mr. Chairman, I yield the balance of my time to the 
gentleman from Texas (Mr. Doggett).
  Mr. DOGGETT. Mr. Chairman, this bill represents another partisan 
Republican failure. It offers no balance either for our energy policy 
or our federal budget. The only balance involved in this plan is the 
balance sheets of big oil, dirty coal, and dangerous nuclear 
industries. They receive substantial boons and largesse from the bounty 
of this bill.
  The balance here is the balance of sweet words about conservation and 
the environment, like those we just heard, with the harsh reality of 
huge subsidies for these industries at the expense of all the rest of 
us.
  Yesterday, we learned that the Treasury is having to borrow more 
money, incurring more public debt, increasing the amount of red ink in 
order to fund the already unwieldy tax cut upon which the President has 
insisted. What solution do the Republicans offer us today? Well, they 
are going to increase the flow of red ink. Today, they are drilling. 
They are drilling for red ink.
  And as we would say in Texas, they have hit a real ``gusher'' of red 
ink in this bill, because they have over $30 billion of mostly special 
interest tax breaks to be paid for directly out of the Medicare trust 
fund. And it is not my word, but a recent Republican memo, as reported 
in the July 27th BNA Daily Tax Report, that says they are already into 
the Medicare trust fund, and the Social Security trust fund is next. 
Those hard-earned payroll taxes going right back to these special 
interests that have been so generous with their campaign money and 
their special interest lobbying.
  This is not an energy policy, it is a collection of unjustified tax 
breaks, loopholes, and dodges masquerading as an energy policy. The 
only energy it reflects is the energy of campaign fund-raising and 
high-powered lobbying. Little wonder this plan was concocted in secret 
by Vice President Cheney and that he is afraid to disclose the 
participants and contents of his various conclaves with special 
interests, even to the nonpartisan General Accounting Office.
  Each year, Taxpayers for Common Sense, Friends of the Earth, and the 
U.S. Public Interest Research Group, identify subsidies that both waste 
taxpayer money and harm the environment. It is called the ``Green 
Scissors Report.'' And if this hodgepodge of a bill is approved, there 
will be plenty more to cut. Indeed it is the American people that are 
really getting cut by this bad bill, which should be rejected.
  We need a conservative national energy policy that emphasizes 
conserving our precious natural resources, increasing energy 
efficiency, and providing reasonable production incentives. This bill 
fails to achieve any of these goals.
  Mr. THOMAS. Mr. Chairman, I yield myself the remainder of my time.
  Volume will not stop the truth from getting out. At my request, the 
Democrats wrote me letters indicating what they would like to see in 
this energy package. In fact, the ranking member of the committee, the 
gentleman from New York (Mr. Rangel), wrote me a letter indicating 
there were 17 provisions that they requested. Twelve of them were 
included in their entirety and several in part.
  I found it ironic that the gentleman from Michigan took the very 
scant few minutes the Committee on Ways and Means has to talk about the 
tax package to, in fact, urge people to vote against an amendment to be 
offered by the chairman of the Committee on Science. So much for the 
real concern about this tax provision.
  Now, I am not going to answer in kind the comments that were made in 
terms of who is getting the money, except to say I cannot believe 
anyone out there listening really believes that the $12 billion 
identified by the gentleman from Washington was going to big oil. As a 
matter of fact, the largest energy production structure in the United 
States gets the smallest amount in this bill.
  It is a balanced bill. It contains many of the provisions the 
Democrats wanted. And if we will listen to their rhetoric, take a look 
at their vote, I think we will find a significant difference between 
what they are saying and how they are voting.
  The CHAIRMAN. All time for the Committee on Ways and Means portion 
has expired.
  It is now in order under the rule to provide time for the Committee 
on Resources. The gentleman from Utah (Mr. Hansen) and the gentleman 
from West Virginia (Mr. Rahall) each will control 10 minutes.
  The Chair recognizes the gentleman from Utah (Mr. Hansen).
  Mr. HANSEN. Mr. Chairman, I yield myself 4 minutes.
  Mr. Chairman, America needs more energy. During months of national 
discussion over energy, I have not heard anyone challenge the fact that 
our Nation needs more energy. Our Nation's demand for natural gas alone 
has risen by 45 percent over the past 15 years, 45 percent. Our 
National need for ore oil is on the rise. Our need for electricity has 
jumped sharply since the advent of the high-tech age and continues to 
rise. Most of the electricity in this country still comes from coal. 
That means our Nation's need for coal is rising.
  These are indisputable facts. What is in dispute is what we do about 
it. I say let us use a little common sense. We need a little old-
fashioned American integrity. We look for ways to curb our energy 
appetite. We look for ways to increase our production. We look for ways 
to be more efficient in the way we use energy, and we invent new 
technology and new kinds of energy.
  This bill, the Securing America's Future Energy Act of 2001, does 
every one of those things. It follows the dictates of reason and common 
sense. With this bill, we get by with less, we produce more, and we 
figure out ways to do things better.
  If we take out any part of this equation, we invite failure. If we 
take out increased production, we fail faster and faster. We cannot 
conserve our way out of the energy challenge that faces us today. We 
cannot research or design our way out of it. We cannot get through this 
with windmills and solar panels. Increased production has to be a part 
of our national energy policy. Without increased production, this 
entire Nation will be the next California.
  California is the Nation's leader in conservation, and we compliment 
them for that.

                              {time}  1415

  California is also the Nation's leader in the use of alternative 
fuels. Almost all of our best alternative fuel projects, solar, wind 
turbine farms, biomass plants, are in California.
  Where did California go wrong? California refused to increase 
production. California looked at its rising energy demands and said, We 
can conserve our way out of this. Apparently they cannot. They were 
wrong. I could have told them that. Whoever drives up to a pump that is 
marked alternative energy sources? There is not such a thing.
  As for conservation, may I just observe, when it comes to oil, at 
least Americans do not seem to have jumped on the conservation 
bandwagon. Look at what people are driving today here, both here within 
the Beltway and outside of the Beltway. Conservation is something that 
does not come to mind.
  The problem we have now with the bill that will be very controversial 
is going to be ANWR. But what people do not realize is that section 
1002 is one very small, small part and was never in the Arctic Refuge. 
This was left out when Congress did it with the idea that basically we 
someday can come and drill with the new technology we have in this 
particular area. So on the coastal plains it makes a lot of sense to 
look at it.
  This big, huge area, the size of South Carolina, 19 million acres, 
and we are

[[Page 15469]]

using an infinitesimal fraction of it. I am amazed the people opposed 
to it have not taken the time to go and look at it.
  We are talking about a Congress and President who have come through 
the energy crisis of 1977. Look what happened then. We made a few 
mistakes. We were not ready to go. We cannot get behind the power curve 
of this particular issue.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RAHALL. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I am among these who believe this country does need a 
new national energy policy, and we need to stick to it through times of 
energy scarcity as well as abundance. But not this energy policy, not 
what is in the pending legislation.
  The bill has nothing to do with providing Americans with energy 
security. Instead, it is a multibillion dollar giveaway of America's 
resources and America's taxpayer dollars to big oil, already awash in 
record profits. The headline, as we see here and has already been 
referred to in today's debate, from a Wall Street Journal article of 
this week: Major Oil Companies Struggle to Spend Huge Hoards of Cash.
  Imagine that. They have profited so mightily from the American public 
that they now cannot figure out what to do with all of their hoards of 
cash. Yet the Republican leadership of this body wants to reward big 
oil even further. Tax credits and tax cuts with no offsets. At least we 
have paid for ours in our version of an energy bill. Relief from 
compensating the American public from drilling on our Federal lands and 
waters.
  Make no mistake about it, these giveaways will come at the expense of 
our elderly. There are no more surpluses. There is no reserve into 
which we can dip. The $33.5 billion tax cuts in this bill, largely for 
energy companies, will come out of Medicare.
  Rob the elderly to pay Exxon, Shell and the rest of them? This is an 
energy policy? I think not.
  The Committee on Resources provision in this bill, in particular, 
provides unnecessary, uncalled for and unjust giveaways that are part 
and parcel of this legislation. One of these provisions, for example, 
would provide companies that want to drill for oil and gas in the Gulf 
of Mexico relief from having to pay royalties to the American people, a 
royalty holiday.
  Under this bill, a company drilling in Federal waters between 400 and 
800 meters deep can receive, for free, 5 million barrels of oil or gas 
equivalent. The owners of these resources are the American people. The 
American people get nothing, zero, zilch.
  Wait a minute, it gets even sweeter.
  Nine million barrels of oil or gas equivalent for drilling in waters 
between 800 to 1,600 meters for free, and if they drill deeper, a 
whopping 23 million barrels of oil or gas equivalent for free. This 
stuff is the makings of Ripley's ``Believe It or Not.''
  At a time when there is widespread public concern that collusion of 
gasoline price fixing has taken place, when there is widespread 
concern, such as in the Wall Street Journal, that these companies are 
already awash in cash, we are providing a royalty holiday in this 
legislation and that is a message that is simply wrong, plain wrong.
  Even Secretary Norton has expressed concern with the extent of the 
generosity to the gas companies offered by the royalty holiday 
language. When I brought the issue up with the President personally at 
the White House, the Vice President chipped in, We are not going to be 
offering these royalties to oil companies.
  The same goes to the royalty in-kind proposal which is nothing more 
than a thinly disguised ruse to reduce royalty payments. This bill 
would have the Federal Government receive oil and gas royalties, not in 
cash but in the form of actual crude oil and natural gas. Federal 
bureaucrats would then be in the business of marketing oil and gas, 
joining the ranks of Exxon, the Shells and the rest of them. It does 
not make any sense.
  I have never heard of it. This surprises me when it comes from the 
majority that rules this body. At a time when Russia and China are 
shedding themselves of state-run industries, why is the effort being 
made by this body to toss the Communist Manifesto into our national 
energy policy?
  To be clear, in their effort to award big oil, Republican leadership 
has not forgotten about big coal as well, certain coal, that is, coal 
produced on Federal lands, mostly in the West.
  The pending legislation would eliminate current law requirements 
providing for the diligent development of Federal coal leases. What 
does this do for America's energy security? Again, absolutely nothing, 
zero, zilch. But it will give rise to the rank speculation in Federal 
coal leasing to the detriment of consumers and coal field jobs. Members 
need to be aware of this provision, not considered by our committee, 
but slipped into this massive bill without even being publicly reviewed 
or debated after full committee action.
  Mr. Chairman, Democrats do not believe we have to shortchange the 
American taxpayer and short shrift the economy and the environment by 
doling out a royalty holiday to big oil. We do not believe we should be 
providing this unfettered access to drilling rigs into environmentally 
sensitive lands.
  We recognize the contributions certain Federal lands can make to our 
Nation's energy mix, already one-quarter of America's oil consumption 
and over one-third of our natural gas and coal use. But at the same 
time we recognize, as responsible public stewards of our land, that 
there are environmental and social costs to energy development which 
also need to be addressed in any national energy policy. This concern 
and this public responsibility is noticeably absent in this 
legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HANSEN. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Wyoming (Mrs. Cubin), chairman of the Subcommittee on Energy and 
Mineral Resources of the Committee on Resources.
  Mrs. CUBIN. Mr. Chairman, I rise in strong support of H.R. 4. 
Division F of this bill is a product of the Committee on Resources. The 
previous speaker should know very well that he has spent his precious 
time misleading Members and misrepresenting what is actually in this 
bill. He should be ashamed.
  We have held many hearings on issues involving the role of the public 
lands on our domestic energy supplies. Our work has led us to include 
provisions in H.R. 4 which require studies and analyses of impediments 
to environmentally sound development of potential energy resources on 
and under public lands. Section 6102 requires an inventory of public 
lands for solar, wind and geothermal energy potential and for coal 
resources. The SAFE Act expands current law to cover renewable energy 
supplies and coal resources. We need to know exactly what is in our 
energy bank, what energy is available to us as a country.
  Subtitle A of title II mandates a 2-year extension of the Deep Water 
Royalty Relief Act of 1995, which has been extremely successful. The 
previous speaker said, What does the United States get out of this, 
zero, zilch, nada, when the gentleman knows from just the Deep Water 
Royalty Relief Act of 1995, we have over $5 billion in the bank as a 
result of only bonuses that were bid in the Gulf of Mexico. That does 
not count any royalties. $5 billion is far from zero, nada, zilch.
  If we continue the program started by President Clinton, which is a 
much smaller program than was signed into law by President Clinton, we 
will get $5, $10, $15, $20 billion in bonuses that we otherwise will 
not get because it is simply too expensive to risk that kind of money 
to drill in the deep water.
  This is a good bill. I will refer to the other complaints about the 
bill later.
  Mr. RAHALL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Oregon (Mr. DeFazio), a valuable member of the Committee on Resources.
  Mr. DeFAZIO. Mr. Chairman, gouge them at the gas pump, and stick it 
to them in their home heating or cooling bill. Seniors have been 
particularly hard hit, but that is not enough for the

[[Page 15470]]

energy conglomerates in this country. Now they want to dip into the 
taxpayers' pockets.
  The same group that yesterday in the Wall Street Journal was revealed 
to have tens of billions of dollars sitting around that they cannot 
figure out what to do with because of the obscene profits they made in 
the last year by manipulating the West Coast electricity markets, the 
gas market, and the gasoline market, they need more. They want more. 
They want it all. And the Republican Party and the President want to 
deliver because they helped them get elected.
  Royalty exemption, $7 billion, right from the taxpayers to the oil 
and gas companies. Tax deductions for nonproducing wells, $1.2 billion, 
right from the taxpayers to the oil and gas companies.
  Income averaging. Average Americans, salespersons, people who sell 
cars for a living, for instance, they cannot do income averaging 
because that would cost the Treasury too much money. But guess what, 
this bill provides income averaging for the oil and gas industry. Since 
they made a $10 or $12 billion profit last year, maybe next year they 
will only make $6 billion, they should be able to average, unlike 
normal Americans.
  Guess what, they cannot afford to pay for the environmental analyses 
for the drilling that they want to do on our sensitive lands. The 
taxpayers should pay for that analysis. Absolutely unprecedented.
  Mr. Chairman, we are opening the Medicare lockbox, and we are taking 
the trust funds out and we are handing them to the oil and gas 
industry. They already have billions that they cannot spend. This is 
not going to get us one more well, one more gallon, one more cubic foot 
of gas, but it is going to enrich the coffers of these obscenely 
wealthy companies that are ripping off Americans.
  Mr. Chairman, we should be ashamed of the thrust of this bill. This 
is a 1950s energy policy. The only thing that is worthwhile to produce 
energy here is to send every American a copy and let them burn it in 
their fireplace next winter because they will not be able to afford 
their home heating bill.
  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from New 
York (Mr. Gilman).
  Mr. GILMAN. Mr. Chairman, a comprehensive national energy policy is 
in our Nation's best interest, and I am gratified that the President 
and the Congress are making our Nation's energy needs a national 
priority. There are many provisions of H.R. 4, Securing America's 
Future Energy Act of 2001, that I support.
  However, I have some reservations about allowing drilling in the 
Arctic, as well as the need to fully address a meaningful increase in 
the corporate average fuel economy, CAFE, standards.
  Mr. Chairman, as we consider this measure, let us bear in mind that 
we cannot drill our way to energy security, and we cannot out-pump 
OPEC. OPEC has cut production this year by 13 percent, some 3.5 million 
barrels a day. For every barrel we pump, OPEC cuts its production 
further to maintain their high prices of oil.
  Mr. Chairman, by approving the CAFE standards, we would be conserving 
some 40 percent of the consumption of oil used in our cars and light 
trucks by some 8 million barrels a day. I hope we can do that. Our 
advanced technology for meeting CAFE standards has lagged behind.
  I urge my colleagues to support this measure. It is a sound measure.

                              {time}  1430

  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from 
Oklahoma (Mr. Carson).
  Mr. CARSON of Oklahoma. Mr. Chairman, I rise today in strong support 
of legislation that would establish a national energy policy and to 
suggest as a Democrat that populist rhetoric against energy 
conglomerates is in fact not only misconceived but entirely 
counterproductive.
  America's economic prosperity and national security depend on the 
availability of reliable, affordable energy. The United States has an 
overwhelming demand for energy which is ever increasing due to our 
population growth. Fortunately, we have an incredible wealth of varied 
energy resources. Conservation and production, far from being competing 
policies, are in fact complementary solutions to our Nation's problems.
  Today this energy legislation has a tax credit for oil and gas 
production for marginal wells that will provide an incentive to keep 
them producing when oil prices drop and provide economic stability to 
States such as Oklahoma which have many marginal wells. It has royalty 
relief to encourage energy companies to go and invest in the deepwater 
drilling that is so essential if we are going to have more production 
in this country to meet our energy needs.
  Mr. Chairman, for these and many other reasons, I strongly encourage 
my colleagues to support this bill and to vote ``aye'' on final 
passage.
  Mr. HANSEN. Mr. Chairman, I yield 1 minute to the gentleman from 
Louisiana (Mr. John).
  Mr. JOHN. Mr. Chairman, I rise today in support of H.R. 4. Our 
Nation's future economic prosperity, our national security and our 
quality of life is all in the hands of what we do today in Congress as 
it relates to an energy policy.
  Americans have been on a roller coaster ride for the last 2 years 
with historically low prices for oil and natural gas being followed up 
with price spikes all over the country. We should not have to wait 
until the next crisis to put a long-term energy policy in place.
  H.R. 4 is a good starting point to start this debate. It represents a 
balanced effort of expanding our energy supplies while creating 
incentives to reduce our reliance on fossil fuels. I personally would 
support a stronger production side in this piece of legislation because 
it troubles me that over 60 percent of our oil is imported from foreign 
countries. But I understand and I expect lively debate on some of the 
issues that we have to deal with.
  I will oppose efforts at striking the language dealing with ANWR. I 
have visited ANWR. I believe we can develop ANWR with the technology 
that leaves just a small, temporary footprint on the Alaskan north 
slope.
  For the sake of our national economy and security, we cannot continue 
to deny access to oil exploration on Federal lands.
  Mr. RAHALL. Mr. Chairman, I yield the balance of my time to the 
gentleman from California (Mr. George Miller), the former chairman of 
the Committee on Resources, now the Democratic leader on the Committee 
on Education and the Workforce.
  Mr. GEORGE MILLER of California. Mr. Chairman, I rise in opposition 
to this legislation.
  Mr. Chairman, this legislation is really not about increasing 
America's energy independence. This legislation is about whether or not 
the automobile companies can continue to fail to meet their obligations 
to American society to improve the mileage standards in our 
automobiles. It is about whether or not the oil companies can find more 
money by drilling the American Treasury than they can find for drilling 
oil.
  This legislation in the heart of it has a terrible trade-off. It 
suggests that we go to the Arctic and that we drill in ANWR, in the 
Arctic National Wildlife Refuge, and then we take that oil and we put 
it into automobiles in this country to continue to waste it. Seventy 
percent of our energy in this country, our oil in this country, is used 
for transportation. Yet the Republicans have continued to put riders on 
appropriations bills so that we can continue to refuse to improve those 
automobile CAFE standards, the mileage per gallon standards that can 
save the American consumer, the American family billions of dollars 
over the coming years.
  Yet at the same time this bill is a raid on the Treasury. We are 
going to have a royalty holiday for those who drill in the deepwater on 
the theory that this will get them to drill. Ladies and gentlemen, read 
the oil and gas journals, read Forbes, read Fortune magazine, read the 
business journals, read the Wall Street Journal. The Gulf

[[Page 15471]]

of Mexico is the hottest oil play in the world today. Yet you are going 
to give them an incentive to go there. You are going to give them an 
incentive to go there. And you are going to rave about the $5 billion 
in bonus royalties and bonus bids that you got as a result of this. Yet 
CBO tells us it is going to cost us $7 billion to get $5 billion. And 
the losses continue over time.
  Keep doing that and you end up with a deficit. Keep doing that and 
you end up socializing an industry from doing what it is already 
supposed to be doing and what it is already doing in the marketplace.
  This is a very bad bill.
  Mr. HANSEN. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, it is time to take a long, hard look at what must be 
done to help our Nation meet its energy needs. It is time to look past 
the special interest groups, the people who feel they run this Nation, 
their letter campaigns and political partisanship. This bill is right 
for the country. ANWR is right for the country. Producing more energy 
on existing energy sites is right for the country. It is right for 
American workers who look forward to 735,000 new, high-paying jobs.
  Why are these people against American workers? American workers are 
the greatest people on earth. They work hard, they get their money, 
they are patriotic Americans. Yet we hear from the other side that they 
are against these workers. I would hope that every person who looks at 
this takes care of the American workers.
  It is right for American consumers discouraged by wildly fluctuating 
prices. Look what they paid in their energy bills this year. Every time 
they drive up to the gas pump, they do not know whether it is 15 cents 
higher or lower. That should not happen.
  It is right for the national security of America because we cannot 
rely on those we can hardly rely on. That is what we are doing now.
  This bill is a bill whose time has come. This is a bill that is 
necessary for America, so we can stabilize the prices that we have, we 
can take care of our energy needs, we can take care of our elderly 
people, and we can take care of the American workers.
  That is the point I want to make. What do those folks voting against 
this have against the American workers? That to me is a critical issue. 
I would hope they would take that into consideration.
  The CHAIRMAN pro tempore (Mr. Linder). All time for general debate 
has expired.
  Pursuant to the rule, the amendment printed in part A of House Report 
107-178 is adopted and the bill, as amended, is considered as the 
original bill for the purpose of further amendment under the 5-minute 
rule and is considered read.
  The text of H.R. 4, as amended, is as follows:

                                 H.R. 4

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Securing 
     America's Future Energy Act of 2001'' or the ``SAFE Act of 
     2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                               DIVISION A

Sec. 100. Short title.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

Sec. 101. Authorization of appropriations.

         Subtitle B--Federal Leadership in Energy Conservation

Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal 
              energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility 
              incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Advanced building efficiency testbed.
Sec. 126. Use of interval data in Federal buildings.
Sec. 127. Review of Energy Savings Performance Contract program.
Sec. 128. Capitol complex.

                       Subtitle C--State Programs

Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools 
              and hospitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 134. LIHEAP.
Sec. 135. High performance public buildings.

          Subtitle D--Energy Efficiency for Consumer Products

Sec. 141. Energy Star program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.

                 Subtitle E--Energy Efficient Vehicles

Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.

                      Subtitle F--Other Provisions

Sec. 161. Review of regulations to eliminate barriers to emerging 
              energy technology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration 
              technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

Sec. 201. Average fuel economy standards for nonpassenger automobiles.
Sec. 202. Consideration of prescribing different average fuel economy 
              standards for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for 
              automobiles.

                       TITLE III--NUCLEAR ENERGY

Sec. 301. License period.
Sec. 302. Cost recovery from Government agencies.
Sec. 303. Depleted uranium hexafluoride.
Sec. 304. Nuclear Regulatory Commission meetings.
Sec. 305. Cooperative research and development and special 
              demonstration projects for the uranium mining industry.
Sec. 306. Maintenance of a viable domestic uranium conversion industry.
Sec. 307. Paducah decontamination and decommissioning plan.

                     TITLE IV--HYDROELECTRIC ENERGY

Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.

                             TITLE V--FUELS

Sec. 601. Tank draining during transition to summertime RFG.
Sec. 602. Gasoline blendstock requirements.
Sec. 603. Boutique fuels.
Sec. 604. Funding for MTBE contamination.

                       TITLE VI--RENEWABLE ENERGY

Sec. 701. Assessment of renewable energy resources.
Sec. 702. Renewable energy production incentive.

                          TITLE VII--PIPELINES

Sec. 801. Prohibition on certain pipeline route.
Sec. 802. Historic pipelines.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 901. Waste reduction and use of alternatives.
Sec. 902. Annual report on United States energy independence.
Sec. 903. Study of aircraft emissions.

                               DIVISION B

Sec. 2001. Short title.
Sec. 2002. Findings.
Sec. 2003. Purposes.
Sec. 2004. Goals.
Sec. 2005. Definitions.
Sec. 2006. Authorizations.
Sec. 2007. Balance of funding priorities.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

Sec. 2101. Short title.
Sec. 2102. Definitions.
Sec. 2103. Pilot program.
Sec. 2104. Reports to Congress.
Sec. 2105. Authorization of appropriations.

          Subtitle B--Distributed Power Hybrid Energy Systems

Sec. 2121. Findings.
Sec. 2122. Definitions.
Sec. 2123. Strategy.
Sec. 2124. High power density industry program.
Sec. 2125. Micro-cogeneration energy technology.
Sec. 2126. Program plan.
Sec. 2127. Report.
Sec. 2128. Voluntary consensus standards.

[[Page 15472]]

           Subtitle C--Secondary Electric Vehicle Battery Use

Sec. 2131. Definitions.
Sec. 2132. Establishment of secondary electric vehicle battery use 
              program.
Sec. 2133. Authorization of appropriations.

                     Subtitle D--Green School Buses

Sec. 2141. Short title.
Sec. 2142. Establishment of pilot program.
Sec. 2143. Fuel cell bus development and demonstration program.
Sec. 2144. Authorization of appropriations.

            Subtitle E--Next Generation Lighting Initiative

Sec. 2151. Short title.
Sec. 2152. Definition.
Sec. 2153. Next Generation Lighting Initiative.
Sec. 2154. Study.
Sec. 2155. Grant program.

    Subtitle F--Department of Energy Authorization of Appropriations

Sec. 2161. Authorization of appropriations.

Subtitle G--Environmental Protection Agency Office of Air and Radiation 
                    Authorization of Appropriations

Sec. 2171. Short title.
Sec. 2172. Authorization of appropriations.
Sec. 2173. Limits on use of funds.
Sec. 2174. Cost sharing.
Sec. 2175. Limitation on demonstration and commercial applications of 
              energy technology.
Sec. 2176. Reprogramming.
Sec. 2177. Budget request format.
Sec. 2178. Other provisions.

          Subtitle H--National Building Performance Initiative

Sec. 2181. National Building Performance Initiative.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

Sec. 2201. Short title.
Sec. 2202. Purposes.
Sec. 2203. Definitions.
Sec. 2204. Reports to Congress.
Sec. 2205. Hydrogen research and development.
Sec. 2206. Demonstrations.
Sec. 2207. Technology transfer.
Sec. 2208. Coordination and consultation.
Sec. 2209. Advisory Committee.
Sec. 2210. Authorization of appropriations.
Sec. 2211. Repeal.

                         Subtitle B--Bioenergy

Sec. 2221. Short title.
Sec. 2222. Findings.
Sec. 2223. Definitions.
Sec. 2224. Authorization.
Sec. 2225. Authorization of appropriations.

            Subtitle C--Transmission Infrastructure Systems

Sec. 2241. Transmission infrastructure systems research, development, 
              demonstration, and commercial application.
Sec. 2242. Program plan.
Sec. 2243. Report.

    Subtitle D--Department of Energy Authorization of Appropriations

Sec. 2261. Authorization of appropriations.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

Sec. 2301. Short title.
Sec. 2302. Findings.
Sec. 2303. Department of Energy program.
Sec. 2304. Authorization of appropriations.

Subtitle B--Advanced Fuel Recycling Technology Research and Development 
                                Program

Sec. 2321. Program.

    Subtitle C--Department of Energy Authorization of Appropriations

Sec. 2341. Nuclear Energy Research Initiative.
Sec. 2342. Nuclear Energy Plant Optimization program.
Sec. 2343. Nuclear energy technologies.
Sec. 2344. Authorization of appropriations.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

Sec. 2401. Coal and related technologies programs.

                        Subtitle B--Oil and Gas

Sec. 2421. Petroleum-oil technology.
Sec. 2422. Gas.

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

Sec. 2441. Short title.
Sec. 2442. Definitions.
Sec. 2443. Ultra-deepwater program.
Sec. 2444. National Energy Technology Laboratory.
Sec. 2445. Advisory Committee.
Sec. 2446. Research Organization.
Sec. 2447. Grants.
Sec. 2448. Plan and funding.
Sec. 2449. Audit.
Sec. 2450. Fund.
Sec. 2451. Sunset.

                         Subtitle D--Fuel Cells

Sec. 2461. Fuel cells.

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2481. Authorization of appropriations.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

Sec. 2501. Short title.
Sec. 2502. Findings.
Sec. 2503. Plan for fusion experiment.
Sec. 2504. Plan for fusion energy sciences program.
Sec. 2505. Authorization of appropriations.

                 Subtitle B--Spallation Neutron Source

Sec. 2521. Definition.
Sec. 2522. Authorization of appropriations.
Sec. 2523. Report.
Sec. 2524. Limitations.

      Subtitle C--Facilities, Infrastructure, and User Facilities

Sec. 2541. Definition.
Sec. 2542. Facility and infrastructure support for nonmilitary energy 
              laboratories.
Sec. 2543. User facilities.

            Subtitle D--Advisory Panel on Office of Science

Sec. 2561. Establishment.
Sec. 2562. Report.

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2581. Authorization of appropriations.

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

Sec. 2601. Research, development, demonstration, and commercial 
              application of energy technology programs, projects, and 
              activities.
Sec. 2602. Limits on use of funds.
Sec. 2603. Cost sharing.
Sec. 2604. Limitation on demonstration and commercial application of 
              energy technology.
Sec. 2605. Reprogramming.

               Subtitle B--Other Miscellaneous Provisions

Sec. 2611. Notice of reorganization.
Sec. 2612. Limits on general plant projects.
Sec. 2613. Limits on construction projects.
Sec. 2614. Authority for conceptual and construction design.
Sec. 2615. National Energy Policy Development Group mandated reports.
Sec. 2616. Periodic reviews and assessments.

                               DIVISION C

Sec. 3001. Short title.

                         TITLE I--CONSERVATION

Sec. 3101. Credit for residential solar energy property.
Sec. 3102. Extension and expansion of credit for electricity produced 
              from renewable resources.
Sec. 3103. Credit for qualified stationary fuel cell powerplants.
Sec. 3104. Alternative motor vehicle credit.
Sec. 3105. Extension of deduction for certain refueling property.
Sec. 3106. Modification of credit for qualified electric vehicles.
Sec. 3107. Tax credit for energy efficient appliances.
Sec. 3108. Credit for energy efficiency improvements to existing homes.
Sec. 3109. Business credit for construction of new energy efficient 
              home.
Sec. 3110. Allowance of deduction for energy efficient commercial 
              building property.
Sec. 3111. Allowance of deduction for qualified energy management 
              devices and retrofitted qualified meters.
Sec. 3112. 3-year applicable recovery period for depreciation of 
              qualified energy management devices.
Sec. 3113. Energy credit for combined heat and power system property.
Sec. 3114. New nonrefundable personal credits allowed against regular 
              and minimum taxes.
Sec. 3115. Phaseout of 4.3-cent motor fuel excise taxes on railroads 
              and inland waterway transportation which remain in 
              general fund.
Sec. 3116. Reduced motor fuel excise tax on certain mixtures of diesel 
              fuel.
Sec. 3117. Credit for investment in qualifying advanced clean coal 
              technology.
Sec. 3118. Credit for production from qualifying advanced clean coal 
              technology.

                         TITLE II--RELIABILITY

Sec. 3201. Natural gas gathering lines treated as 7-year property.
Sec. 3202. Natural gas distribution lines treated as 10-year property.
Sec. 3203. Petroleum refining property treated as 7-year property.
Sec. 3204. Expensing of capital costs incurred in complying with 
              environmental protection agency sulfur regulations.
Sec. 3205. Environmental tax credit.
Sec. 3206. Determination of small refiner exception to oil depletion 
              deduction.
Sec. 3207. Tax-exempt bond financing of certain electric facilities.
Sec. 3208. Sales or dispositions to implement Federal Energy Regulatory 
              Commission or State electric restructuring policy.
Sec. 3209. Distributions of stock to implement Federal Energy 
              Regulatory Commission or State electric restructuring 
              policy.
Sec. 3210. Modifications to special rules for nuclear decommissioning 
              costs.

[[Page 15473]]

Sec. 3211. Treatment of certain income of cooperatives.
Sec. 3212. Repeal of requirement of certain approved terminals to offer 
              dyed diesel fuel and kerosene for nontaxable purposes.
Sec. 3213. Arbitrage rules not to apply to prepayments for natural gas.

                         TITLE III--PRODUCTION

Sec. 3301. Oil and gas from marginal wells.
Sec. 3302. Temporary suspension of limitation based on 65 percent of 
              taxable income and extension of suspension of taxable 
              income limit with respect to marginal production.
Sec. 3303. Deduction for delay rental payments.
Sec. 3304. Election to expense geological and geophysical expenditures.
Sec. 3305. 5-year net operating loss carryback for losses attributable 
              to operating mineral interests of oil and gas producers.
Sec. 3306. Extension and modification of credit for producing fuel from 
              a nonconventional source.
Sec. 3307. Business related energy credits allowed against regular and 
              minimum tax.
Sec. 3308. Temporary repeal of alternative minimum tax preference for 
              intangible drilling costs.
Sec. 3309. Allowance of enhanced recovery credit against the 
              alternative minimum tax.
Sec. 3310. Extension of certain benefits for energy-related businesses 
              on Indian reservations.

                               DIVISION D

Sec. 4101. Capacity building for energy-efficient, affordable housing.
Sec. 4102. Increase of CDBG public services cap for energy conservation 
              and efficiency activities.
Sec. 4103. FHA mortgage insurance incentives for energy efficient 
              housing.
Sec. 4104. Public housing capital fund.
Sec. 4105. Grants for energy-conserving improvements for assisted 
              housing.
Sec. 4106. North American Development Bank.

                               DIVISION E

Sec. 5000. Short title.
Sec. 5001. Findings.
Sec. 5002. Definitions.
Sec. 5003. Clean coal power initiative.
Sec. 5004. Cost and performance goals.
Sec. 5005. Authorization of appropriations.
Sec. 5006. Project criteria.
Sec. 5007. Study.

                               DIVISION F

Sec. 6000. Short title.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

Sec. 6101. Study of existing rights-of-way on Federal lands to 
              determine capability to support new pipelines or other 
              transmission facilities.
Sec. 6102. Inventory of energy production potential of all Federal 
              public lands.
Sec. 6103. Review of regulations to eliminate barriers to emerging 
              energy technology.
Sec. 6104. Interagency agreement on environmental review of interstate 
              natural gas pipeline projects.
Sec. 6105. Enhancing energy efficiency in management of Federal lands.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

Sec. 6201. Short title.
Sec. 6202. Lease sales in Western and Central Planning Area of the Gulf 
              of Mexico.
Sec. 6203. Savings clause.
Sec. 6204. Analysis of Gulf of Mexico field size distribution, 
              international competitiveness, and incentives for 
              development.

       Subtitle B--Improvements to Federal Oil and Gas Management

Sec. 6221. Short title.
Sec. 6222. Study of impediments to efficient lease operations.
Sec. 6223. Elimination of unwarranted denials and stays.
Sec. 6224. Limitations on cost recovery for applications.
Sec. 6225. Consultation with Secretary of Agriculture.

                       Subtitle C--Miscellaneous

Sec. 6231. Offshore subsalt development.
Sec. 6232. Program on oil and gas royalties in kind.
Sec. 6233. Marginal well production incentives.
Sec. 6234. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

Sec. 6301. Royalty reduction and relief.
Sec. 6302. Exemption from royalties for direct use of low temperature 
              geothermal energy resources.
Sec. 6303. Amendments relating to leasing on Forest Service lands.
Sec. 6304. Deadline for determination on pending noncompetitive lease 
              applications.
Sec. 6305. Opening of public lands under military jurisdiction.
Sec. 6306. Application of amendments.
Sec. 6307. Review and report to Congress.
Sec. 6308. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.

                          TITLE IV--HYDROPOWER

Sec. 6401. Study and report on increasing electric power production 
              capability of existing facilities.
Sec. 6402. Installation of powerformer at Folsom power plant, 
              California.
Sec. 6403. Study and implementation of increased operational 
              efficiencies in hydroelectric power projects.
Sec. 6404. Shift of project loads to off-peak periods.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Leasing program for lands within the Coastal Plain.
Sec. 6504. Lease sales.
Sec. 6505. Grant of leases by the Secretary.
Sec. 6506. Lease terms and conditions.
Sec. 6507. Coastal Plain environmental protection.
Sec. 6508. Expedited judicial review.
Sec. 6509. Rights-of-way across the Coastal Plain.
Sec. 6510. Conveyance.
Sec. 6511. Local government impact aid and community service 
              assistance.
Sec. 6512. Revenue allocation.

   TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR

Sec. 6601. Energy conservation by the Department of the Interior.

                            TITLE VII--COAL

Sec. 6701. Limitation on fees with respect to coal lease applications 
              and documents.
Sec. 6702. Mining plans.
Sec. 6703. Payment of advance royalties under coal leases.
Sec. 6704. Elimination of deadline for submission of coal lease 
              operation and reclamation plan.

               TITLE VIII--INSULAR AREAS ENERGY SECURITY

Sec. 6801. Insular areas energy security.

                               DIVISION A

     SEC. 100. SHORT TITLE.

       This division may be cited as the ``Energy Advancement and 
     Conservation Act of 2001''.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Section 660 of the Department of Energy Organization Act 
     (42 U.S.C. 7270) is amended as follows:
       (1) By inserting ``(a)'' before ``Appropriations''.
       (2) By inserting at the end the following new subsection:
       ``(b) There are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002, $950,000,000; for 
     fiscal year 2003, $1,000,000,000; for fiscal year 2004, 
     $1,050,000,000; for fiscal year 2005, $1,100,000,000; and for 
     fiscal year 2006, $1,150,000,000, to carry out energy 
     efficiency activities under the following laws, such sums to 
     remain available until expended:
       ``(1) Energy Policy and Conservation Act, including section 
     256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient 
     products), sections 321 through 346 (42 U.S.C. 6291-6317) 
     (appliances program).
       ``(2) Energy Conservation and Production Act, including 
     sections 301 through 308 (42 U.S.C. 6831-6837) (energy 
     conservation standards for new buildings).
       ``(3) National Energy Conservation Policy Act, including 
     sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy 
     Management Program).
       ``(4) Energy Policy Act of 1992, including sections 103 (42 
     U.S.C. 13458) (energy efficient lighting and building 
     centers), 121 (42 U.S.C. 6292 note) (energy efficiency 
     labeling for windows and window systems), 125 (42 U.S.C. 6292 
     note) (energy efficiency information for commercial office 
     equipment), 126 (42 U.S.C. 6292 note) (energy efficiency 
     information for luminaires), 131 (42 U.S.C. 6348) (energy 
     efficiency in industrial facilities), and 132 (42 U.S.C. 
     6349) (process-oriented industrial energy efficiency).''.

         Subtitle B--Federal Leadership in Energy Conservation

     SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

       (a) Purpose.--Section 542 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8252) is amended by 
     inserting ``, and generally to promote the production, 
     supply, and marketing of energy efficiency products and 
     services and the production, supply, and marketing of 
     unconventional and renewable energy resources'' after ``by 
     the Federal Government''.
       (b) Energy Management Requirements.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended as follows:
       (1) In subsection (a)(1), by striking ``during the fiscal 
     year 1995'' and all that follows through the end and 
     inserting ``during--

[[Page 15474]]

       ``(1) fiscal year 1995 is at least 10 percent;
       ``(2) fiscal year 2000 is at least 20 percent;
       ``(3) fiscal year 2005 is at least 30 percent;
       ``(4) fiscal year 2010 is at least 35 percent;
       ``(5) fiscal year 2015 is at least 40 percent; and
       ``(6) fiscal year 2020 is at least 45 percent,

     less than the energy consumption per gross square foot of its 
     Federal buildings in use during fiscal year 1985. To achieve 
     the reductions required by this paragraph, an agency shall 
     make maximum practicable use of energy efficiency products 
     and services and unconventional and renewable energy 
     resources, using guidelines issued by the Secretary under 
     subsection (d) of this section.''.
       (2) In subsection (d), by inserting ``Such guidelines shall 
     include appropriate model technical standards for energy 
     efficiency and unconventional and renewable energy resources 
     products and services. Such standards shall reflect, to the 
     extent practicable, evaluation of both currently marketed and 
     potentially marketable products and services that could be 
     used by agencies to improve energy efficiency and increase 
     unconventional and renewable energy resources.'' after 
     ``implementation of this part.''.
       (3) By adding at the end the following new subsection:
       ``(e) Studies.--To assist in developing the guidelines 
     issued by the Secretary under subsection (d) and in 
     furtherance of the purposes of this section, the Secretary 
     shall conduct studies to identify and encourage the 
     production and marketing of energy efficiency products and 
     services and unconventional and renewable energy resources. 
     To conduct such studies, and to provide grants to accelerate 
     the use of unconventional and renewable energy, there are 
     authorized to be appropriated to the Secretary $20,000,000 
     for each of the fiscal years 2003 through 2010.''.
       (c) Definition.--Section 551 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8259) is amended as 
     follows:
       (1) By striking ``and'' at the end of paragraph (8).
       (2) By striking the period at the end of paragraph (9) and 
     inserting ``; and''.
       (3) By adding at the end the following new paragraph:
       ``(10) the term `unconventional and renewable energy 
     resources' includes renewable energy sources, hydrogen, fuel 
     cells, cogeneration, combined heat and power, heat recovery 
     (including by use of a Stirling heat engine), and distributed 
     generation.''.
       (d) Exclusions From Requirement.--The National Energy 
     Conservation Policy Act (42 U.S.C. 7201 and following) is 
     amended as follows:
       (1) In section 543(a)--
       (A) by striking ``(1) Subject to paragraph (2)'' and 
     inserting ``Subject to subsection (c)''; and
       (B) by striking ``(2) An agency'' and all that follows 
     through ``such exclusion.''.
       (2) By amending subsection (c) of such section 543 to read 
     as follows:
       ``(c) Exclusions.--(1) A Federal building may be excluded 
     from the requirements of subsections (a) and (b) only if--
       ``(A) the President declares the building to require 
     exclusion for national security reasons; and
       ``(B) the agency responsible for the building has--
       ``(i) completed and submitted all federally required energy 
     management reports; and
       ``(ii) achieved compliance with the energy efficiency 
     requirements of this Act, the Energy Policy Act of 1992, 
     Executive Orders, and other Federal law;
       ``(iii) implemented all practical, life cycle cost-
     effective projects in the excluded building.
       ``(2) The President shall only declare buildings described 
     in paragraph (1)(A) to be excluded, not ancillary or nearby 
     facilities that are not in themselves national security 
     facilities.''.
       (3) In section 548(b)(1)(A)--
       (A) by striking ``copy of the''; and
       (B) by striking ``sections 543(a)(2) and 543(c)(3)'' and 
     inserting ``section 543(c)''.
       (e) Acquisition Requirement.--Section 543(b) of such Act is 
     amended--
       (1) in paragraph (1), by striking ``(1) Not'' and inserting 
     ``(1) Except as provided in paragraph (5), not''; and
       (2) by adding at the end the following new paragraph:
       ``(5)(A)(i) Agencies shall select only Energy Star products 
     when available when acquiring energy-using products. For 
     product groups where Energy Star labels are not yet 
     available, agencies shall select products that are in the 
     upper 25 percent of energy efficiency as designated by FEMP. 
     In the case of electric motors of 1 to 500 horsepower, 
     agencies shall select only premium efficiency motors that 
     meet a standard designated by the Secretary, and shall 
     replace (not rewind) failed motors with motors meeting such 
     standard. The Secretary shall designate such standard within 
     90 days of enactment of paragraph, after considering 
     recommendations by the National Electrical Manufacturers 
     Association. The Secretary of Energy shall develop guidelines 
     within 180 days after the enactment of this paragraph for 
     exemptions to this section when equivalent products do not 
     exist, are impractical, or do not meet the agency mission 
     requirements.
       ``(ii) The Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency), with assistance from the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Energy, shall create clear catalogue listings 
     that designate Energy Star products in both print and 
     electronic formats. After any existing federal inventories 
     are exhausted, Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency) shall only replace inventories 
     with energy-using products that are Energy Star, products 
     that are rated in the top 25 percent of energy efficiency, or 
     products that are exempted as designated by FEMP and defined 
     in clause (i).
       ``(iii) Agencies shall incorporate energy-efficient 
     criteria consistent with Energy Star and other FEMP 
     designated energy efficiency levels into all guide 
     specifications and project specifications developed for new 
     construction and renovation, as well as into product 
     specification language developed for Basic Ordering 
     Agreements, Blanket Purchasing Agreements, Government Wide 
     Acquisition Contracts, and all other purchasing procedures.
       ``(iv) The legislative branch shall be subject to this 
     subparagraph to the same extent and in the same manner as are 
     the Federal agencies referred to in section 521(1).
       ``(B) Not later than 6 months after the date of the 
     enactment of this paragraph, the Secretary of Energy shall 
     establish guidelines defining the circumstances under which 
     an agency shall not be required to comply with subparagraph 
     (A). Such circumstances may include the absence of Energy 
     Star products, systems, or designs that serve the purpose of 
     the agency, issues relating to the compatibility of a 
     product, system, or design with existing buildings or 
     equipment, and excessive cost compared to other available and 
     appropriate products, systems, or designs.
       ``(C) Subparagraph (A) shall apply to agency acquisitions 
     occurring on or after October 1, 2002.''.
       (f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is 
     amended by adding at the end the following new subsection:
       ``(f) Metering.--(1) By October 1, 2004, all Federal 
     buildings including buildings owned by the legislative branch 
     and the Federal court system and other energy-using 
     structures shall be metered or submetered in accordance with 
     guidelines established by the Secretary under paragraph (2).
       ``(2) Not later than 6 months after the date of the 
     enactment of this subsection, the Secretary, in consultation 
     with the General Services Administration and representatives 
     from the metering industry, energy services industry, 
     national laboratories, colleges of higher education, and 
     federal facilities energy managers, shall establish 
     guidelines for agencies to carry out paragraph (1). Such 
     guidelines shall take into consideration each of the 
     following:
       ``(A) Cost.
       ``(B) Resources, including personnel, required to maintain, 
     interpret, and report on data so that the meters are 
     continually reviewed.
       ``(C) Energy management potential.
       ``(D) Energy savings.
       ``(E) Utility contract aggregation.
       ``(F) Savings from operations and maintenance.
       ``(3) A building shall be exempt from the requirement of 
     this section to the extent that compliance is deemed 
     impractical by the Secretary. A finding of impracticability 
     shall be based on the same factors as identified in 
     subsection (c) of this section.''.
       (g) Retention of Energy Savings.--Section 546 of such Act 
     (42 U.S.C. 8256) is amended by adding at the end the 
     following new subsection:
       ``(e) Retention of Energy Savings.--An agency may retain 
     any funds appropriated to that agency for energy 
     expenditures, at buildings subject to the requirements of 
     section 543(a) and (b), that are not made because of energy 
     savings. Except as otherwise provided by law, such funds may 
     be used only for energy efficiency or unconventional and 
     renewable energy resources projects.''.
       (h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is 
     amended as follows:
       (1) In subsection (a)--
       (A) by inserting ``in accordance with guidelines 
     established by and'' after ``to the Secretary,'';
       (B) by striking ``and'' at the end of paragraph (1);
       (C) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (D) by adding at the end the following new paragraph:
       ``(3) an energy emergency response plan developed by the 
     agency.''.
       (2) In subsection (b)--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(5) all information transmitted to the Secretary under 
     subsection (a).''.
       (3) By amending subsection (c) to read as follows:
       ``(c) Agency Reports to Congress.--Each agency shall 
     annually report to the Congress, as part of the agency's 
     annual budget

[[Page 15475]]

     request, on all of the agency's activities implementing any 
     Federal energy management requirement.''.
       (i) Inspector General Energy Audits.--Section 160(c) of the 
     Energy Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by 
     striking ``is encouraged to conduct periodic'' and inserting 
     ``shall conduct periodic''.
       (j) Federal Energy Management Reviews.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended by adding at the end the following:
       ``(g) Priority Response Reviews.--Each agency shall--
       ``(1) not later than 9 months after the date of the 
     enactment of this subsection, undertake a comprehensive 
     review of all practicable measures for--
       ``(A) increasing energy and water conservation, and
       ``(B) using renewable energy sources; and
       ``(2) not later than 180 days after completing the review, 
     develop plans to achieve not less than 50 percent of the 
     potential efficiency and renewable savings identified in the 
     review.

     The agency shall implement such measures as soon thereafter 
     as is practicable, consistent with compliance with the 
     requirements of this section.''.

     SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO 
                   FEDERAL ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Cost Savings From Operation and Maintenance 
     Efficiencies in Replacement Facilities.--Section 801(a) of 
     the National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)) is amended by adding at the end the following new 
     paragraph:
       ``(3)(A) In the case of an energy savings contract or 
     energy savings performance contract providing for energy 
     savings through the construction and operation of one or more 
     buildings or facilities to replace one or more existing 
     buildings or facilities, benefits ancillary to the purpose of 
     such contract under paragraph (1) may include savings 
     resulting from reduced costs of operation and maintenance at 
     such replacement buildings or facilities when compared with 
     costs of operation and maintenance at the buildings or 
     facilities being replaced, established through a methodology 
     set forth in the contract.
       ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
     payments by an agency under an energy savings contract or 
     energy savings performance contract referred to in 
     subparagraph (A) may take into account (through the 
     procedures developed pursuant to this section) savings 
     resulting from reduced costs of operation and maintenance as 
     described in that subparagraph.''.
       (b) Expansion of Definition of Energy Savings to Include 
     Water and Replacement Facilities.--
       (1) Energy savings.--Section 804(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to 
     read as follows:
       ``(2)(A) The term `energy savings' means a reduction in the 
     cost of energy or water, from a base cost established through 
     a methodology set forth in the contract, used in an existing 
     federally owned building or buildings or other federally 
     owned facilities as a result of--
       ``(i) the lease or purchase of operating equipment, 
     improvements, altered operation and maintenance, or technical 
     services;
       ``(ii) the increased efficient use of existing energy 
     sources by solar and ground source geothermal resources, 
     cogeneration or heat recovery (including by the use of a 
     Stirling heat engine), excluding any cogeneration process for 
     other than a federally owned building or buildings or other 
     federally owned facilities; or
       ``(iii) the increased efficient use of existing water 
     sources.
       ``(B) The term `energy savings' also means, in the case of 
     a replacement building or facility described in section 
     801(a)(3), a reduction in the cost of energy, from a base 
     cost established through a methodology set forth in the 
     contract, that would otherwise be utilized in one or more 
     existing federally owned buildings or other federally owned 
     facilities by reason of the construction and operation of the 
     replacement building or facility.''.
       (2) Energy savings contract.--Section 804(3) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) 
     is amended to read as follows:
       ``(3) The terms `energy savings contract' and `energy 
     savings performance contract' mean a contract which provides 
     for--
       ``(A) the performance of services for the design, 
     acquisition, installation, testing, operation, and, where 
     appropriate, maintenance and repair, of an identified energy 
     or water conservation measure or series of measures at one or 
     more locations; or
       ``(B) energy savings through the construction and operation 
     of one or more buildings or facilities to replace one or more 
     existing buildings or facilities.''.
       (3) Energy or water conservation measure.--Section 804(4) 
     of the National Energy Conservation Policy Act (42 U.S.C. 
     8287c(4)) is amended to read as follows:
       ``(4) The term `energy or water conservation measure' 
     means--
       ``(A) an energy conservation measure, as defined in section 
     551(4) (42 U.S.C. 8259(4)); or
       ``(B) a water conservation measure that improves water 
     efficiency, is life cycle cost effective, and involves water 
     conservation, water recycling or reuse, improvements in 
     operation or maintenance efficiencies, retrofit activities, 
     or other related activities, not at a Federal hydroelectric 
     facility.''.
       (4) Conforming amendment.--Section 801(a)(2)(C) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)(C)) is amended by inserting ``or water'' after 
     ``financing energy''.
       (c) Extension of Authority.--Section 801(c) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8287(c)) is 
     repealed.
       (d) Contracting and Auditing.--Section 801(a)(2) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8287(a)(2)) is amended by adding at the end the following new 
     subparagraph:
       ``(E) A Federal agency shall engage in contracting and 
     auditing to implement energy savings performance contracts as 
     necessary and appropriate to ensure compliance with the 
     requirements of this Act, particularly the energy efficiency 
     requirements of section 543.''.

     SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHORITY TO ENTER 
                   UTILITY INCENTIVE PROGRAMS FOR ENERGY SAVINGS.

       Section 546(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8256(c)) is amended as follows:
       (1) In paragraph (3) by adding at the end the following: 
     ``Such a utility incentive program may include a contract or 
     contract term designed to provide for cost-effective 
     electricity demand management, energy efficiency, or water 
     conservation.''.
       (2) By adding at the end of the following new paragraphs:
       ``(6) A utility incentive program may include a contract or 
     contract term for a reduction in the energy, from a base cost 
     established through a methodology set forth in such a 
     contract, that would otherwise be utilized in one or more 
     federally owned buildings or other federally owned facilities 
     by reason of the construction or operation of one or more 
     replacement buildings or facilities, as well as benefits 
     ancillary to the purpose of such contract or contract term, 
     including savings resulting from reduced costs of operation 
     and maintenance at new or additional buildings or facilities 
     when compared with the costs of operation and maintenance at 
     existing buildings or facilities.
       ``(7) Federal agencies are encouraged to participate in 
     State or regional demand side reduction programs, including 
     those operated by wholesale market institutions such as 
     independent system operators, regional transmission 
     organizations and other entities. The availability of such 
     programs, and the savings resulting from such participation, 
     should be included in the evaluation of energy options for 
     Federal facilities.''.

     SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT PUMP 
                   EFFICIENCY.

       (a) Requirement.--Federal agencies shall be required to 
     acquire central air conditioners and heat pumps that meet or 
     exceed the standards established under subsection (b) or (c) 
     in the case of all central air conditioners and heat pumps 
     acquired after the date of enactment of this Act.
       (b) Standards.--The standards referred to in subsection (a) 
     are the following:
       (1) For air-cooled air conditioners with cooling capacities 
     of less than 65,000 Btu/hour, a Seasonal Energy Efficiency 
     Ratio of 12.0.
       (2) For air-source heat pumps with cooling capacities less 
     than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 
     12 SEER, and a Heating Seasonal Performance Factor of 7.4.
       (c) Modified Standards.--The Secretary of Energy may 
     establish, after appropriate notice and comment, revised 
     standards providing for reduced energy consumption or 
     increased energy efficiency of central air conditioners and 
     heat pumps acquired by the Federal Government, but may not 
     establish standards less rigorous than those established by 
     subsection (b).
       (d) Definitions.--For purposes of this section, the terms 
     ``Energy Efficiency Ratio'', ``Seasonal Energy Efficiency 
     Ratio'', ``Heating Seasonal Performance Factor'', and 
     ``Coefficient of Performance'' have the meanings used for 
     those terms in Appendix M to Subpart B of Part 430 of title 
     10 of the Code of Federal Regulations, as in effect on May 
     24, 2001.
       (e) Exemptions.--An agency shall be exempt from the 
     requirements of this section with respect to air conditioner 
     or heat pump purchases for particular uses where the agency 
     head determines that purchase of a air conditioner or heat 
     pump for such use would be impractical. A finding of 
     impracticability shall be based on whether--
       (1) the energy savings pay-back period for such purchase 
     would be less than 10 years;
       (2) space constraints or other technical factors would make 
     compliance with this section cost-prohibitive; or
       (3) in the case of the Departments of Defense and Energy, 
     compliance with this section would be inconsistent with the 
     proper discharge of national security functions.

     SEC. 125. ADVANCED BUILDING EFFICIENCY TESTBED.

       (a) Establishment.--The Secretary of Energy shall establish 
     an Advanced Building Efficiency Testbed program for the 
     development, testing, and demonstration of advanced 
     engineering systems, components,

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     and materials to enable innovations in building technologies. 
     The program shall evaluate government and industry building 
     efficiency concepts, and demonstrate the ability of next 
     generation buildings to support individual and organizational 
     productivity and health as well as flexibility and 
     technological change to improve environmental sustainability.
       (b) Participants.--The program established under subsection 
     (a) shall be led by a university having demonstrated 
     experience with the application of intelligent workplaces and 
     advanced building systems in improving the quality of built 
     environments. Such university shall also have the ability to 
     combine the expertise from more than 12 academic fields, 
     including electrical and computer engineering, computer 
     science, architecture, urban design, and environmental and 
     mechanical engineering. Such university shall partner with 
     other universities and entities who have established programs 
     and the capability of advancing innovative building 
     efficiency technologies.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy to carry out 
     this section $18,000,000 for fiscal year 2002, to remain 
     available until expended, of which $6,000,000 shall be 
     provided to the lead university described in subsection (b), 
     and the remainder shall be provided equally to each of the 
     other participants referred to in subsection (b).