[Congressional Record (Bound Edition), Volume 147 (2001), Part 12]
[Senate]
[Pages 17552-17580]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 1587. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe strengths for such fiscal year for the Armed Forces, and 
for other purpose; which was ordered to lie on the table; as follows:

       At the end of title IX, add the following:

     SEC. 908. POSITION OF DEPUTY UNDER SECRETARY OF DEFENSE 
                   (DEPUTY COMPTROLLER).

       (e) Establishment of Position.--Chapter 4 of title 10, 
     United States Code, is amended by inserting after section 135 
     the following new section:

     ``Sec. 135a. Deputy Under Secretary of Defense (Deputy 
       Comptroller)

       ``(a) There is a Deputy Under Secretary of Defense (Deputy 
     Comptroller) appointed from civilian life by the President, 
     by and with the advice and consent of the Senate.

[[Page 17553]]

       ``(b) The Deputy Under Secretary of Defense (Deputy 
     Comptroller) shall assist the Under Secretary of Defense 
     (Comptroller) in the performance of his duties. The Deputy 
     Under Secretary of Defense (Deputy Comptroller) shall act 
     for, and exercise the powers of, the Under Secretary when the 
     Under Secretary is absent or disabled.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 135 following new item:

``135a. Deputy Under Secretary of Defense (Deputy Comptroller).''.
                                  ____

  SA 1588. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe strengths for such fiscal year for the Armed Forces, and 
for other purpose; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title III, add the following:

     SEC. 335. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 
                   PROGRAM.

       (a) Extension of Authority.--Subsection (f) of section 391 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85; 111 Stat. 1716; 10 U.S.C. 2304 note) 
     is amended by striking ``September 30, 1999'' and inserting 
     ``September 30, 2003''.
       (b) Reporting Requirements.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by striking ``January 1, 2000'' and 
     inserting ``January 1, 2003''; and
       (2) in paragraph (2), by striking ``March 1, 2000'' and 
     inserting ``March 1, 2003''.
                                  ____

  SA 1589. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle D of title III, add the following:

     SEC. 335. COMPLIANCE OF THE DEFENSE AUTOMATED PRINTING 
                   SERVICE WITH FEDERAL PRINTING REQUIREMENTS.

       (a) Repeal of Requirement.--Section 195 of title 10, United 
     States Code, is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter I of chapter 8 of such title is 
     amended by striking the item relating to section 195.
                                  ____

  SA 1590. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle C of title X, add the following:

     SEC. 1027. REPEAL OF REQUIREMENT FOR MONTHLY REPORTS ON 
                   ALLOCATION OF FUNDS WITHIN OPERATION AND 
                   MAINTENANCE BUDGET SUBACTIVITIES.

       (a) Repeal.--Section 228 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 9 of such title is amended by striking 
     the item relating to section 228.
                                  ____

  SA 1591. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle C of title X, add the following:

     SEC. 1027. CONTENT OF PERIODIC REPORT ON COMBAT SUPPORT 
                   AGENCIES.

       Section 193(a)(1) of title 10, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) a determination with respect to the effectiveness and 
     efficiency of each such agency to support the armed forces; 
     and''.
                                  ____

  SA 1592. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of title IX, add the following:

     SEC. 908. REPEAL OF LIMITATION ON NUMBER OF PERSONNEL IN THE 
                   OFFICE OF THE SECRETARY OF DEFENSE.

       (a) Repeal.--Section 143 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 4 of title 10, United States Code, is 
     amended by striking the item relating to section 143.
                                  ____

  SA 1593. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle B of title XII, add the following:

     SEC. 1217. AUTHORITY TO WAIVE SANCTIONS.

       (a) Authority.--Notwithstanding any other provision of law, 
     the President is authorized to waive any sanction imposed 
     against any foreign country or government (including any 
     agency or instrumentality thereof) or any foreign entity if 
     the President determines that to do so would assist in 
     efforts to combat global terrorism or is otherwise in the 
     national security interests of the United States.
       (b) Congressional Notification.--Not less than 30 days 
     prior to the exercise of any waiver authorized by subsection 
     (a), the President shall notify Congress of his intention to 
     exercise the waiver, together with an explanation of his 
     reasons for the waiver.
       (c) Sanction Defined.--In this section, the term 
     ``sanction'' means any prohibition or restriction with 
     respect to a foreign country or government or foreign entity 
     that is imposed by the United States for reasons of foreign 
     policy or national security, except in a case in which the 
     United States imposes the measure pursuant to--
       (1) a multilateral regime and the other member countries of 
     that regime have agreed to impose substantially equivalent 
     measures; or
       (2) a mandatory decision of the United Nations Security 
     Council.
                                  ____

  SA 1594. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle D of title III, add the following:

     SEC. 335. REVISION OF AUTHORITY TO WAIVE LIMITATION ON 
                   PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

       Section 2466(c) of title 10, United States Code, is amended 
     to read as follows:
       ``(c) Waiver of Limitation.--(1) The President may waive 
     the limitation in subsection (a) for a fiscal year if--
       ``(A) the President determines that--
       ``(i) the waiver is necessary for reasons of national 
     security; and
       ``(ii) compliance with the limitation cannot be achieved 
     through effective management of depot operations consistent 
     with those reasons; and
       ``(B) the President submits to Congress a notification of 
     the waiver together with--
       ``(i) a discussion of the reasons for the waiver; and
       ``(ii) the plan for terminating the waiver and complying 
     with the limitation within two years after the date of the 
     first exercise of the waiver authority under this subsection.
       ``(2) The President may delegate only to the Secretary of 
     Defense authority to exercise the waiver authority of the 
     President under paragraph (1).''.
                                  ____

  SA 1595. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department

[[Page 17554]]

of Defense, for military constructions, and for defense activities of 
the Department of Energy, to prescribe personnel strengths for such 
fiscal year for the Armed Forces, and for other purposes; which was 
ordered to lie on the table; as follows:
       On page 380, after line 15, insert the following:

     SEC. 1066. CLOSURE OF VIEQUES NAVAL TRAINING RANGE.

       (a) Conditional Authority.--Title XV of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted by Public Law 106-398; 114 Stat. 1654A-348) is 
     amended by striking sections 1503 and 1504 and inserting the 
     following new section:

     ``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING 
                   RANGE.

       The Secretary of the Navy may close the Vieques Naval 
     Training Range on the island of Vieques, Puerto Rico, and 
     discontinue live-fire training at that range only if the 
     Chief of Naval Operations and the Commandant of the Marine 
     Corps jointly certify that the training range is no longer 
     needed for the training of units of the Navy and the Marine 
     Corps stationed or deployed in the eastern United States.''.
       (b) Actions Related to Closure.--(1) Section 1505 of such 
     Act (114 Stat. 1654A-353) is amended--
       (A) by striking subsection (a) and inserting the following:
       ``(a) Time for Taking Actions.--The actions required or 
     authorized under this section may only be taken upon the 
     closure of the Vieques Naval Training Range by the Secretary 
     of the Navy.'';
       (B) in subsection (b)(1), by striking ``Not later than May 
     1, 2003, the'' and inserting ``The'';
       (C) in subsection (d)(1), by striking ``pending the 
     enactment of a law that addresses the disposition of such 
     properties'';
       (D) in subsection (e)(2), ``the referendum under section 
     1503'' and all that follows and inserting ``the Secretary of 
     the Navy closes the Vieques Naval Training Range.''; and
       (E) by adding at the end the following new subsection:
       ``(f) Military Use of Transferred Property During War or 
     National Emergency.--
       ``(1) Temporary transfer by secretary of the interior.--
     Upon a declaration of war by Congress or a declaration of a 
     national emergency by the President or Congress, the 
     Secretary of the Interior shall transfer the administrative 
     jurisdiction of the Live Impact Area to the Secretary of the 
     Navy notwithstanding the requirement to retain the property 
     under subsection (d)(1).
       ``(2) Training authorized.--Training of the Armed Forces 
     may be conducted in the Live Impact Area while the property 
     is under the administrative jurisdiction of the Secretary of 
     the Navy pursuant to a transfer made under that paragraph 
     (1). The training may include live-fire training. Subsection 
     (b) shall not apply to training authorized under this 
     paragraph.
       ``(3) Return of property to secretary of the interior.--
     Upon the termination of the war or national emergency 
     necessitating the transfer of administrative jurisdiction 
     under paragraph (1), the Secretary of the Navy shall transfer 
     the administrative jurisdiction of the Live Impact Area to 
     the Secretary of the Interior, who shall assume 
     responsibility for the property and administer the property 
     in accordance with subsection (d).''.
       (2) The heading of such section is amended to read as 
     follows:

     ``SEC. 1505. ACTIONS UPON CLOSURE OF THE VIEQUES NAVAL 
                   TRAINING RANGE.''.

       (c) Conforming Amendment.--Section 1507(c) of such Act is 
     amended by striking ``the issuance of a proclamation 
     described in section 1504(a) or''.
                                  ____

  SA 1596. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of the bill, add the following:

                  DIVISION D--NATIONAL ENERGY SECURITY

     SEC. 4001. ENACTMENT OF ENERGY PROVISIONS.

       The provisions of H.R. 4 of the 107th Congress, as passed 
     by the House of Representatives on August 2, 2001, are 
     enacted into law.
                                  ____

  SA 1597. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of the bill, add the following:

                  DIVISION D--NATIONAL ENERGY SECURITY

     SEC. 4001. SHORT TITLE.

       This division may be cited as the ``National Energy 
     Security Act of 2001''.

     SEC. 4002. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) increasing dependence on foreign sources of oil causes 
     systemic harm to all sectors of the United States economy, 
     threatens national security, undermines the ability of 
     Federal, State, and local units of government to provide 
     essential services, and jeopardizes the peace, security, and 
     welfare of the American people;
       (2) dependence on imports of foreign oil was 46 percent in 
     1992, rose to more than 55 percent by the beginning of 2000, 
     and is estimated by the Department of Energy to rise to 65 
     percent by 2020 unless current policies are altered;
       (3) even with increased energy efficiency, energy use in 
     the United States is expected to increase 27 percent by 2020;
       (4) the United States lacks a comprehensive national energy 
     policy and has taken actions that limit the availability and 
     capability of the domestic energy sources of oil and gas, 
     coal, nuclear and hydroelectric;
       (5) a comprehensive energy strategy must be developed to 
     combat this trend, decrease the United States dependence on 
     imported oil supplies and strengthen our national energy 
     security;
       (6) this comprehensive strategy must decrease the United 
     States dependence on foreign oil supplies to not more than 50 
     percent by the year 2011;
       (7) this comprehensive energy strategy must be multi-
     faceted and enhance the use of renewable energy resources 
     (including hydroelectric, solar, wind, geothermal and 
     biomass), conserve energy resources (including improving 
     energy efficiencies), and increase domestic supplies of 
     conventional energy resources (including oil, natural gas, 
     coal, and nuclear);
       (8) conservation efforts and alternative fuels alone will 
     not enable America to meet this goal as conventional energy 
     sources supply 96 percent of America's power at this time; 
     and
       (9) immediate actions must also be taken to mitigate the 
     economic effects of recent increases in the price of crude 
     oil, natural gas, and electricity and the related impacts on 
     American consumers, including the poor and the elderly.
       (b) Purposes.--The purposes of this division are to protect 
     the energy security of the United States by decreasing 
     America's dependence on foreign oil sources to not more than 
     50 percent by 2010, by enhancing the use of renewable energy 
     resources, conserving energy resources (including improving 
     energy efficiencies), and increasing domestic energy 
     supplies, improving environmental quality by reducing 
     emissions of air pollutants and greenhouse gases, and 
     mitigating the immediate effect of increases in energy prices 
     on the American consumer, including the poor and the elderly.

   TITLE I--GENERAL PROVISIONS TO PROTECT ENERGY SUPPLY AND SECURITY

     SEC. 4101. CONSULTATION AND REPORT ON FEDERAL AGENCY ACTIONS 
                   AFFECTING DOMESTIC ENERGY SUPPLY.

       Prior to taking or initiating any action that could have a 
     significant adverse effect on the availability or supply of 
     domestic energy resources or on the domestic capability to 
     distribute or transport such resources, the head of a Federal 
     agency proposing or participating in such action shall notify 
     the Secretary of Energy in writing of the nature and scope of 
     the action, the need for such action, the potential effect of 
     such action on energy resource supplies, price, distribution, 
     and transportation, and any alternatives to such action or 
     options to mitigate the effects and shall provide the 
     Secretary of Energy with adequate time to review the proposed 
     action and make recommendations to avoid or minimize the 
     adverse effect of the proposed action. The proposing agency 
     shall consider any such recommendations made by the Secretary 
     of Energy. The Secretary of Energy shall provide an annual 
     report to the Committee on Energy and Natural Resources of 
     the United States Senate and to the appropriate committees of 
     the House of Representatives on all actions brought to his 
     attention, what mitigation or alternatives, if any, were 
     implemented, and what the short-term, mid-term, and long-term 
     effect of the final action will likely be on domestic energy 
     resource supplies and their development, distribution, or 
     transmission.

     SEC. 4102. ANNUAL REPORT ON UNITED STATES ENERGY 
                   INDEPENDENCE.

       (a) Report.--Beginning on October 1, 2001, and annually 
     thereafter, the Secretary of Energy, in consultation with the 
     Secretary of Defense and the heads of other relevant Federal 
     agencies, shall submit a report to the President and Congress 
     which evaluates the progress the United States has made 
     toward obtaining the goal of not more than 50 percent 
     dependence on foreign oil sources by 2010.
       (b) Alternatives.--The report shall specify legislative or 
     administrative actions that must be implemented to meet this 
     goal and set forth a range of options and alternatives

[[Page 17555]]

     with a benefit/cost analysis for each option or alternative 
     together with an estimate of the contribution each option or 
     alternative could make to reduce foreign oil imports. The 
     Secretary shall solicit information from the public and 
     request information from the Energy Information Agency and 
     other agencies to develop the report. The report shall 
     indicate, in detail, options and alternatives to (1) increase 
     the use of renewable domestic energy sources, including 
     conventional and non-conventional sources such as, but not 
     limited to, increased hydroelectric generation at existing 
     Federal facilities, (2) conserve energy resources, including 
     improving efficiencies and decreasing consumption, and (3) 
     increase domestic production and use of oil, natural gas, 
     nuclear, and coal, including any actions necessary to provide 
     access to, and transportation of, these energy resources.
       (c) Refinery Capacity.--As part of the reports submitted in 
     2001, 2005, and 2008, the Secretary shall examine and report 
     on the condition of the domestic refinery industry and the 
     extent of domestic storage capacity for various categories of 
     petroleum products and make such recommendations as he 
     believes will enhance domestic capabilities to respond to 
     short-term shortages of various fuels due to climate or 
     supply interruptions and ensure long-term supplies on a 
     reliable and affordable basis.
       (d) Notification to Congress.--Whenever the Secretary 
     determines that stocks of petroleum products have declined or 
     are anticipated to decline to levels that would jeopardize 
     national security or threaten supply shortages or price 
     increases on a national or regional basis, he shall 
     immediately notify Congress of the situation and shall make 
     such recommendations for administrative or legislative action 
     as he believes are necessary to alleviate the situation.

     SEC. 4103. STRATEGIC PETROLEUM RESERVE STUDY AND REPORT.

       The President shall immediately establish an Interagency 
     Panel on the Strategic Petroleum Study (referred to in this 
     section as the ``Panel'') to study oil markets and estimate 
     the extent and frequency of fluctuations in the supply and 
     price of, and demand for crude oil in the future and 
     determine appropriate capacity of and uses for the Strategic 
     Petroleum Reserve. The Panel may recommend changes in 
     existing authorities to strengthen the ability of the 
     Strategic Petroleum Reserve to respond to energy 
     requirements. The Panel shall complete its study and submit a 
     report containing its findings and any recommendations to the 
     President and Congress within 6 months from the date of 
     enactment of this Act.

     SEC. 4104. STUDY OF EXISTING RIGHTS-OF-WAY TO DETERMINE 
                   CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER 
                   TRANSMISSION FACILITIES.

       Not later than 1 year after the date of enactment of this 
     Act, the head of each Federal agency that has authorized a 
     right-of-way across Federal lands for transportation of 
     energy supplies or transmission of electricity shall review 
     each such right-of-way and submit a report to the Secretary 
     of Energy and the Chairman of the Federal Energy Regulatory 
     Commission whether the right-of-way can be used to support 
     new or additional capacity and what modifications or other 
     changes, if any, would be necessary to accommodate such 
     additional capacity. In performing the review, the head of 
     each agency shall consult with agencies of State or local 
     units of government as appropriate and consider whether 
     safety or other concerns related to current uses might 
     preclude the availability of a right-of-way for additional or 
     new transportation or transmission facilities and shall set 
     forth those considerations in the report.

     SEC. 4105. USE OF FEDERAL FACILITIES.

       (a) The Secretary of the Interior and the Secretary of the 
     Army shall each inventory all dams, impoundments, and other 
     facilities under their jurisdiction.
       (b) Based on this inventory and other information, the 
     Secretary of the Interior and the Secretary of the Army shall 
     each submit a report to Congress not later than 180 days 
     after the date of enactment of this Act. Each report shall--
       (1) describe, in detail, each facility that is capable, 
     with or without modification, of producing additional 
     hydroelectric power. For each such facility, the report shall 
     state the full potential for the facility to generate 
     hydroelectric power, whether the facility is currently 
     generating hydroelectric power, and the costs to install, 
     upgrade, modify, or take other actions to increase the 
     hydroelectric generating capability of the facility. For each 
     facility that currently has hydroelectric generating 
     equipment, the report shall indicate the condition of such 
     equipment, maintenance requirements, and schedule for any 
     improvements as well as the purposes for which power is 
     generated; and
       (2) describe what actions are planned or underway to 
     increase hydroelectric production from facilities under his 
     jurisdiction and shall include any recommendations the 
     Secretary deems advisable to increase such production, reduce 
     costs, and improve efficiency at Federal facilities, 
     including, but not limited to, use of lease of power 
     privilege and contracting with non-Federal entities for 
     operation and maintenance.

     SEC. 4106. NUCLEAR GENERATION STUDY.

       The Chairman of the Nuclear Regulatory Commission shall 
     submit a report to Congress not later than 180 days after the 
     date of enactment of this Act on the state of nuclear power 
     generation and production in the United States and the 
     potential for increasing nuclear generating capacity and 
     production as part of this Nation's energy mix. The report 
     shall include an assessment of agency readiness to license 
     new advanced reactor designs and discuss the needed 
     confirmatory and anticipatory research activities that would 
     support such a state of readiness. The report shall also 
     review the status of the relicensing process for civilian 
     nuclear power plants, including current and anticipated 
     applications, and recommendations for improvements in the 
     process, including, but not limited to recommendations for 
     expediting the process and ensuring that relicensing is 
     accomplished in a timely manner.

     SEC. 4107. DEVELOPMENT OF A NATIONAL SPENT NUCLEAR FUEL 
                   STRATEGY AND ESTABLISHMENT OF AN OFFICE OF 
                   SPENT NUCLEAR FUEL RESEARCH.

       (a) Determination by Congress.--Prior to the Federal 
     Government taking any irreversible action relating to the 
     disposal of spent nuclear fuel, Congress must determine 
     whether the spent fuel should be treated as waste subject to 
     permanent burial or should be considered an energy resource 
     that is needed to meet future energy requirements.
       (b) Office of Spent Nuclear Fuel Research.--There is hereby 
     established an Office of Spent Nuclear Fuel Research 
     (referred to in this section as the ``Office'') within the 
     Office of Nuclear Energy Science and Technology of the 
     Department of Energy. The Office shall be headed by the 
     Associate Director, who shall be a member of the Senior 
     Executive Service appointed by the Director of the Office of 
     Nuclear Energy Science and Technology, and compensated at a 
     rate determined by applicable law.
       (c) Associate Director.--The Associate Director of the 
     Office of Spent Nuclear Fuel Research shall be responsible 
     for carrying out an integrated research, development, and 
     demonstration program on technologies for treatment, 
     recycling, and disposal of high-level nuclear radioactive 
     waste and spent nuclear fuel, subject to the general 
     supervision of the Secretary. The Associate Director of the 
     Office shall report to the Director of the Office of Nuclear 
     Energy Science and Technology. The first such Associate 
     Director shall be appointed not later than 90 days after the 
     date of enactment of this Act.
       (d) Grant and Contract Authority.--In carrying out his 
     responsibilities under this section, the Secretary may make 
     grants, or enter into contracts, for the purposes of the 
     research projects and activities described in (e)(2).
       (e) Duties.--The Associate Director of the Office shall--
       (1) involve national laboratories, universities, the 
     commercial nuclear industry, and other organizations to 
     investigate technologies for the treatment, recycling, and 
     disposal of spent nuclear fuel and high-level radioactive 
     waste;
       (2) develop a research plan to provide recommendations by 
     2015;
       (3) identify technologies for the treatment, recycling, and 
     disposal of spent nuclear fuel and high-level radioactive 
     waste;
       (4) conduct research and development activities on such 
     technologies;
       (5) ensure that all activities include as key objectives 
     minimization of proliferation concerns and risk to health of 
     the general public or site workers, as well as development of 
     cost-effective technologies;
       (6) require research on both reactor- and accelerator-based 
     transmutation systems;
       (7) require research on advanced processing and 
     separations;
       (8) encourage that research efforts include participation 
     of international collaborators;
       (9) be authorized to fund international collaborators when 
     they bring unique capabilities not available in the United 
     States and their host country is unable to provide for their 
     support; and
       (10) ensure that research efforts with the Office are 
     coordinated with research on advanced fuel cycles and 
     reactors conducted within the Office of Nuclear Energy 
     Science and Technology.
       (f) Report.--The Associate Director of the Office of Spent 
     Nuclear Fuel Research shall annually prepare and submit a 
     report to Congress on the activities and expenditures of the 
     Office, including the progress that has been made to achieve 
     the objectives of subsection (c).

     SEC. 4108. STUDY AND REPORT ON STATUS OF DOMESTIC REFINING 
                   INDUSTRY AND PRODUCT DISTRIBUTION SYSTEM.

       (a) Annual Report.--The Secretary of Energy, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, the States, the National Petroleum 
     Council, and other representatives of the petroleum refining, 
     distribution and retailing industries, shall submit a report 
     to Congress on the condition of the domestic petroleum 
     refining industry and the petroleum product distribution 
     system. The first such report shall be submitted not later 
     than January 1, 2002, and revised annually thereafter.
       (b) Recommendations.--Each annual report shall include any 
     recommendations that

[[Page 17556]]

     the Secretary believes should be implemented either through 
     legislation or regulation to ensure that there is adequate 
     domestic refining capacity and motor fuel supplies to meet 
     the economic, social, and security requirements of the United 
     States.
       (c) Preparation.--In preparing each annual report, the 
     Secretary shall--
       (1) provide an assessment of the condition of the domestic 
     petroleum refining industry and the Nation's motor fuel 
     distribution system, including the ability to make future 
     capital investments necessary to manufacture, transport, and 
     store different petroleum products required by local, State, 
     and Federal statute and regulations;
       (2) examine the reliability and cost of feedstocks and 
     energy supplied to the refining industry as well as the 
     reliability and cost of products manufactured by such 
     industry;
       (3) provide an assessment of the collective effect of 
     current and future motor fuel requirements on--
       (A) the ability of the domestic motor fuels refining, 
     distribution, and retailing industries to reliably and cost-
     effectively supply fuel to the Nation's consumers and 
     businesses;
       (B) gasoline (reformulated and conventional) and diesel 
     fuel (on-highway and off-highway) supplies; and
       (C) retail motor fuel price volatility;
       (4) explore opportunities to streamline permitting and 
     siting decisions and approvals for expanding existing and/or 
     building new domestic refining capacity;
       (5) recommend actions that can be taken to reduce future 
     motor supply concerns; and
       (6) provide an assessment of whether uniform, regional, or 
     national performance-based fuel specifications would reduce 
     supply disruptions and price spikes.
       (d) Confidentiality of Data.--Any information requested by 
     the Secretary to be submitted by industry for purposes of 
     this section shall be treated as confidential and shall be 
     used only for the preparation of the annual report.

     SEC. 4109. REVIEW OF FEDERAL ENERGY REGULATORY COMMISSION 
                   NATURAL GAS PIPELINE CERTIFICATION PROCEDURES.

       The Federal Energy Regulatory Commission shall, in 
     consultation with other appropriate Federal agencies, 
     immediately undertake a comprehensive review of policies, 
     procedures, and regulations for the certification of natural 
     gas pipelines to determine how to reduce the cost and time of 
     obtaining a certificate. The Commission shall report its 
     findings not later than 180 days after the date of enactment 
     of this Act to the Senate Committee on Energy and Natural 
     Resources and the appropriate committees of the United States 
     House of Representatives, including any recommendations for 
     legislative changes.

     SEC. 4110. ANNUAL REPORT ON AVAILABILITY OF DOMESTIC ENERGY 
                   RESOURCES TO MAINTAIN THE ELECTRICITY GRID OF 
                   THE UNITED STATES.

       (a) Beginning on October 1, 2001, and annually thereafter, 
     the Secretary of Energy, in consultation with the Federal 
     Energy Regulatory Commission and the North American Electric 
     Reliability Council, States, and appropriate regional 
     organizations, shall submit a report to the President and 
     Congress which evaluates the availability and capacity of 
     domestic sources of energy generation to maintain the 
     electricity grid in the United States. Specifically, the 
     Secretary shall evaluate each region of the country with 
     regard to grid stability during peak periods, such as summer, 
     and options for improving grid stability.
       (b) The report shall specify specific legislative or 
     administrative actions that could be implemented to improve 
     baseload generation and set forth a range of options and 
     alternatives with a benefit/cost analysis for each option or 
     alternative together with an estimate of the contribution 
     each option or alternative could make to reduce foreign oil 
     imports. The report shall indicate, in detail, options and 
     alternatives to (1) increase the use of nonemitting domestic 
     energy sources, including conventional and nonconventional 
     sources such as, but not limited to, increased nuclear energy 
     generation, and (2) conserve energy resources, including 
     improving efficiencies and decreasing fuel consumption.

     SEC. 4111. STUDY OF FINANCING FOR NEW TECHNOLOGIES.

       (a) The Secretary of Energy shall undertake an independent 
     assessment of innovative financing techniques to encourage 
     and enable construction of new electricity supply 
     technologies with high initial capital costs that might not 
     otherwise be built in a deregulated market.
       (b) The assessment shall be conducted by a firm with proven 
     expertise in financing large capital projects or in financial 
     services consulting, and is to be provided to Congress not 
     later than 270 days after the date of enactment of this Act.
       (c) The assessment shall include a comprehensive 
     examination of all available techniques to safeguard private 
     investors in high capital technologies--including advanced 
     design power plants including, but not limited to, nuclear--
     against government-imposed risks that are beyond the 
     investors' control. Such techniques may include (but not be 
     limited to) Federal loan guarantees, Federal price 
     guarantees, special tax considerations, and direct Federal 
     Government investment.

     SEC. 4112. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO 
                   EMERGING ENERGY TECHNOLOGY.

       (a) In General.--Each Federal agency shall carry out a 
     review of its regulations and standards to determine those 
     that act as a barrier to market entry for emerging energy-
     efficient technologies, including, but not limited to, fuel 
     cells, combined heat and power, and distributed generation 
     (including small-scale renewable energy).
       (b) Report to Congress.--Not later than eighteen months 
     from date of enactment of this section, each agency shall 
     provide a report to Congress and the President detailing all 
     regulatory barriers to emerging energy-efficient 
     technologies, along with actions the agency intends to take, 
     or has taken, to remove such barriers.
       (c) Periodic Review.--Each agency shall subsequently review 
     its regulations and standards in this manner no less 
     frequently than every 5 years, and report their findings to 
     Congress and the President. Such reviews shall include a 
     detailed analysis of all agency actions taken to remove 
     existing barriers to emerging energy technologies.

     SEC. 4113. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF 
                   INTERSTATE NATURAL GAS PIPELINE PROJECTS.

       The Secretary of Energy, in coordination with the Federal 
     Energy Regulatory Commission, shall establish an 
     administrative interagency task force to develop an 
     interagency agreement to expedite and facilitate the 
     environmental review and permitting of interstate natural gas 
     pipeline projects. The task force shall include the Bureau of 
     Land Management and the Fish and Wildlife Service in the 
     Department of the Interior, the United States Army Corps of 
     Engineers, the United States Forest Service, the 
     Environmental Protection Agency, the Advisory Council on 
     Historic Preservation and such other agencies as the Office 
     and the Federal Energy Regulatory Commission deem 
     appropriate. The interagency agreement shall require that 
     agencies complete their review of interstate pipeline 
     projects within a specific period of time after referral of 
     the matter by the Federal Energy Regulatory Commission. The 
     agreement shall be completed within 6 months after the 
     effective date of this section.

     SEC. 4114. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY 
                   RESEARCH AND DEVELOPMENT.

       (a) In General.--The Secretary of Transportation, in 
     coordination with the Secretary of Energy, shall develop and 
     implement an accelerated cooperative program of research and 
     development to ensure the integrity of natural gas and 
     hazardous liquid pipelines. This research and development 
     program shall include materials inspection techniques, risk 
     assessment methodology, and information systems surety.
       (b) Purpose.--The purpose of the cooperative research 
     program shall be to promote research and development to--
       (1) ensure long-term safety, reliability and service life 
     for existing pipelines;
       (2) expand capabilities of internal inspection devices to 
     identify and accurately measure defects and anomalies;
       (3) develop inspection techniques for pipelines that cannot 
     accommodate the internal inspection devices available on the 
     date of enactment;
       (4) develop innovative techniques to measure the structural 
     integrity of pipelines to prevent pipeline failures;
       (5) develop improved materials and coatings for use in 
     pipelines;
       (6) improve the capability, reliability, and practicality 
     of external leak detection devices;
       (7) identify underground environments that might lead to 
     shortened service life;
       (8) enhance safety in pipeline siting and land use;
       (9) minimize the environmental impact of pipelines;
       (10) demonstrate technologies that improve pipeline safety, 
     reliability, and integrity;
       (11) provide risk assessment tools for optimizing risk 
     mitigation strategies; and
       (12) provide highly secure information systems for 
     controlling the operation of pipelines.
       (c) Areas.--In carrying out this section, the Secretary of 
     Transportation, in coordination with the Secretary of Energy, 
     shall consider research and development on natural gas, crude 
     oil, and petroleum product pipelines for--
       (1) early crack, defect, and damage detection, including 
     real-time damage monitoring;
       (2) automated internal pipeline inspection sensor systems;
       (3) land use guidance and set back management along 
     pipeline rights-of-way for communities;
       (4) internal corrosion control;
       (5) corrosion-resistant coatings;
       (6) improved cathodic protection;
       (7) inspection techniques where internal inspection is not 
     feasible, including measurement of structural integrity;
       (8) external leak detection, including portable real-time 
     video imaging technology, and the advancement of computerized 
     control center leak detection systems utilizing real-time 
     remote field data input;

[[Page 17557]]

       (9) longer life, high strength, non-corrosive pipeline 
     materials;
       (10) assessing the remaining strength of existing pipes;
       (11) risk and reliability analysis models, to be used to 
     identify safety improvements that could be realized in the 
     near term resulting from analysis of data obtained from a 
     pipeline performance tracking initiative;
       (12) identification, monitoring, and prevention of outside 
     force damage, including satellite surveillance; and
       (13) any other areas necessary to ensuring the public 
     safety and protecting the environment.
       (d) Research and Development Program Plan.--Within 240 days 
     after the date of enactment of this section, the Secretary of 
     Transportation, in coordination with the Secretary of Energy 
     and the Pipeline Integrity Technical Advisory Committee, 
     shall prepare and submit to Congress a 5-year program plan to 
     guide activities under this section. In preparing the program 
     plan, the Secretary shall consult with the appropriate 
     representatives of the natural gas, crude oil, and petroleum 
     product pipeline industries to select and prioritize 
     appropriate project proposals. The Secretary may also seek 
     the advice of utilities, manufacturers, institutions of 
     higher learning, Federal agencies, the pipeline research 
     institutions, national laboratories, State pipeline safety 
     officials, environmental organizations, pipeline safety 
     advocates, and professional and technical societies.
       (e)  Implementation.--The Secretary of Transportation shall 
     have primary responsibility for ensuring the 5-year plan 
     provided for in subsection (d) is implemented as intended by 
     this section. In carrying out the research, development, and 
     demonstration activities under this section, the Secretary of 
     Transportation and the Secretary of Energy may use, to the 
     extent authorized under applicable provisions of law, 
     contracts, cooperative agreements, cooperative research and 
     development agreements under the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3701 et seq.), grants, 
     joint ventures, other transactions, and any other form of 
     agreement available to the Secretary consistent with the 
     recommendations of the Advisory Committee.
       (f) Reports to Congress.--The Secretary of Transportation 
     shall report to Congress annually as to the status and 
     results to date of the implementation of the research and 
     development program plan. The report shall include the 
     activities of the Departments of Transportation and Energy, 
     the national laboratories, universities, and any other 
     research organizations, including industry research 
     organizations.
       (g) Pipeline Integrity Technical Advisory Committee.--
       (1) Establishment.--The Secretary of Transportation shall 
     enter into appropriate arrangements with the National Academy 
     of Sciences to establish and manage the Pipeline Integrity 
     Technical Advisory Committee for the purpose of advising the 
     Secretary of Transportation and the Secretary of Energy on 
     the development and implementation of the 5-year research, 
     development, and demonstration program plan as defined in 
     subsection (d). The Advisory Committee shall have an ongoing 
     role in evaluating the progress and results of the research, 
     development, and demonstration carried out under this 
     section.
       (2) Membership.--The National Academy of Sciences shall 
     appoint the members of the Pipeline Integrity Technical 
     Advisory Committee after consultation with the Secretary of 
     Transportation and the Secretary of Energy. Members appointed 
     to the Advisory Committee should have the necessary 
     qualifications to provide technical contributions to the 
     purposes of the Advisory Committee.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation and to 
     the Secretary of Energy for carrying out this section such 
     sums as may be necessary for each of the fiscal years 2002 
     through 2006.

     SEC. 4115. RESEARCH AND DEVELOPMENT FOR NEW NATURAL GAS 
                   TECHNOLOGIES.

       (a) The Secretary of Energy shall conduct a comprehensive 
     5-year program for research, development and demonstration to 
     improve the reliability, efficiency, safety and integrity of 
     the natural gas transportation and distribution 
     infrastructure and for distributed energy resources 
     (including microturbines, fuel cells, advanced engine-
     generators gas turbines reciprocating engines, hybrid power 
     generation systems, and all ancillary equipment for dispatch, 
     control and maintenance).
       (b) There are authorized to be appropriated such sums as 
     may be necessary for the purposes of this section.

  TITLE II--TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM FOR ADVANCED 
 CLEAN COAL TECHNOLOGY FOR COAL-BASED ELECTRICITY GENERATING FACILITIES

     SEC. 4201. PURPOSE.

       The purpose of this title is to direct the Secretary of 
     Energy (referred to in this title as the ``Secretary'') to--
       (1) establish a coal-based technology development program 
     designed to achieve cost and performance goals;
       (2) carry out a study to identify technologies that may be 
     capable of achieving, either individually or in combination, 
     the cost and performance goals and for other purposes; and
       (3) implement a research, development, and demonstration 
     program to develop and demonstrate, in commercial-scale 
     applications, advanced clean coal technologies for coal-fired 
     generating units constructed before the date of enactment of 
     this title.

     SEC. 4202. COST AND PERFORMANCE GOALS.

       (a) In General.--The Secretary shall perform an assessment 
     that identifies costs and associated performance of 
     technologies that would permit the continued cost-competitive 
     use of coal for electricity generation, as chemical 
     feedstocks, and as transportation fuel in 2007, 2015, and the 
     years after 2020.
       (b) Consultation.--In establishing cost and performance 
     goals, the Secretary shall consult with representatives of--
       (1) the United States coal industry;
       (2) State coal development agencies;
       (3) the electric utility industry;
       (4) railroads and other transportation industries;
       (5) manufacturers of equipment using advanced coal 
     technologies;
       (6) organizations representing workers; and
       (7) organizations formed to--
       (A) further the goals of environmental protection;
       (B) promote the use of coal; or
       (C) promote the development and use of advanced coal 
     technologies.
       (c) Timing.--The Secretary shall--
       (1) not later than 120 days after the date of enactment of 
     this Act, issue a set of draft cost and performance goals for 
     public comment; and
       (2) not later than 180 days after the date of enactment of 
     this Act, and after taking into consideration any public 
     comments received, submit to Congress the final cost and 
     performance goals.

     SEC. 4203. STUDY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in cooperation with the 
     Secretary of the Interior and the Administrator of the 
     Environmental Protection Agency, shall conduct a study to--
       (1) identify technologies capable of achieving cost and 
     performance goals, either individually or in various 
     combinations;
       (2) assess costs that would be incurred by, and the period 
     of time that would be required for, the development and 
     demonstration of technologies that contribute, either 
     individually or in various combinations, to the achievement 
     of cost and performance goals; and
       (3) develop recommendations for technology development 
     programs, which the Department of Energy could carry out in 
     cooperation with industry, to develop and demonstrate such 
     technologies.
       (b) Cooperation.--In carrying out this section, the 
     Secretary shall give appropriate consideration to the expert 
     advice of representatives from the entities described in 
     section 4111(b).

     SEC. 4204. TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

       (a) In General.--The Secretary shall carry out a program of 
     research on and development, demonstration, and commercial 
     application of coal-based technologies under--
       (1) this division;
       (2) the Federal Nonnuclear Energy Research and Development 
     Act of 1974 (42 U.S.C. 5901 et seq.);
       (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 
     et seq.); and
       (4) title XVI of the Energy Policy Act of 1992 (42 U.S.C. 
     13381 et seq.).
       (b) Conditions.--The research, development, demonstration, 
     and commercial application programs identified in section 
     4203(a) shall be designed to achieve the cost and performance 
     goals, either individually or in various combinations.
       (c) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     President and Congress a report containing--
       (1) a description of the programs that, as of the date of 
     the report, are in effect or are to be carried out by the 
     Department of Energy to support technologies that are 
     designed to achieve the cost and performance goals; and
       (2) recommendations for additional authorities required to 
     achieve the cost and performance goals.

     SEC. 4205. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out the provisions of sections 4202, 4203, and 4204, 
     $100,000,000 for each of fiscal years 2002 through 2012, to 
     remain available until expended.
       (b) Conditions of Authorization.--The authorization of 
     appropriations under subsection (a)--
       (1) shall be in addition to authorizations of 
     appropriations in effect on the date of enactment of this 
     Act; and
       (2) shall not be a cap on Department of Energy fossil 
     energy research and development and clean coal technology 
     appropriations.

     SEC. 4206. POWER PLANT IMPROVEMENT INITIATIVE.

       (a) In General.--The Secretary shall carry out a power 
     plant improvement initiative program that will demonstrate 
     commercial applications of advanced coal-based technologies 
     applicable to new or existing power

[[Page 17558]]

     plants, including co-production plants, that, either 
     individually or in combination, advance the efficiency, 
     environmental performance and cost competitiveness well 
     beyond that which is in operation or has been demonstrated to 
     date.
       (b) Plan.--Not later than 120 days after the date of 
     enactment of this title, the Secretary shall submit to 
     Congress a plan to carry out subsection (a) that includes a 
     description of--
       (1) the program elements and management structure to be 
     used;
       (2) the technical milestones to be achieved with respect to 
     each of the advanced coal-based technologies included in the 
     plan; and
       (3) the demonstration activities that will benefit new or 
     existing coal-based electric generation units having at least 
     a 50 megawatt nameplate rating including improvements to 
     allow the units to achieve either--
       (A) an overall design efficiency improvement of not less 
     than 3 percentage points as compared with the efficiency of 
     the unit as operated on the date of enactment of this title 
     and before any retrofit, repowering, replacement or 
     installation;
       (B) a significant improvement in the environmental 
     performance related to the control of sulfur dioxide, 
     nitrogen oxide or mercury in a manner that is well below the 
     cost of technologies that are in operation or have been 
     demonstrated to date; or
       (C) a means of recycling or reusing a significant 
     proportion of coal combustion wastes produced by coal-based 
     generating units excluding practices that are commercially 
     available at the date of enactment.

     SEC. 4207. FINANCIAL ASSISTANCE.

       (a) In General.--Not later than 180 days after the date on 
     which the Secretary submits to Congress the plan under 
     section 4206(b), the Secretary shall solicit proposals for 
     projects which serve or benefit new or existing facilities 
     and, either individually or in combination, are designed to 
     achieve the levels of performance set forth in section 
     4206(b)(3).
       (b) Project Criteria.--A solicitation under subsection (a) 
     may include solicitation of a proposal for a project to 
     demonstrate--
       (1) the reduction of emissions of 1 or more pollutants; or
       (2) the production of coal combustion byproducts that are 
     capable of obtaining economic values significantly greater 
     than byproducts produced on the date of enactment of this 
     title.
       (c) Financial Assistance.--The Secretary shall provide 
     financial assistance to projects that--
       (1) demonstrate overall cost reductions in the utilization 
     of coal to generate useful forms of energy;
       (2) improve the competitiveness of coal among various forms 
     of energy to maintain a diversity of fuel choices in the 
     United States to meet electricity generation requirements;
       (3) achieve in a cost-effective manner, 1 or more of the 
     criteria set out in the solicitation; and
       (4) demonstrate technologies that are applicable to 25 
     percent of the electricity generating facilities that use 
     coal as the primary feedstock on the date of enactment of 
     this title.
       (d) Federal Share.--The Federal share of the cost of any 
     project funded under this section shall not exceed 50 
     percent.
       (e) Exemption From New Source Review Provisions.--A project 
     funded under this section shall be exempt from the new source 
     review provisions of the Clean Air Act (42 U.S.C. 7401 et 
     seq.).

     SEC. 4208. FUNDING.

       To carry out sections 4206 and 4207, there are authorized 
     to be appropriated such sums as may be necessary.

     SEC. 4209. RESEARCH AND DEVELOPMENT FOR ADVANCED SAFE AND 
                   EFFICIENT COAL MINING TECHNOLOGIES.

       (a) The Secretary of Energy shall establish a cooperative 
     research partnership involving appropriate Federal agencies, 
     coal producers, including associations, equipment 
     manufacturers, universities with mining engineering 
     departments, and other relevant entities to develop mining 
     research priorities identified by the Mining Industry of the 
     Future Program and in the National Academy of Sciences report 
     on Mining Technologies, establish a process for joint 
     industry-government research; and expand mining research 
     capabilities at universities.
       (b) There are authorized to be appropriated to carry out 
     the requirements of this section, $10,000,000 in fiscal year 
     2002, $12,000,000 in fiscal year 2003, and $15,000,000 in 
     fiscal year 2004. At least 20 percent of any funds 
     appropriated shall be dedicated to research carried out at 
     universities.

     SEC. 4210. RAILROAD EFFICIENCY.

       (a) The Secretary shall, in conjunction with the 
     Secretaries of Transportation and Defense, and the 
     Administrator of the Environmental Protection Agency, 
     establish a public-private research partnership involving the 
     Federal Government, railroad carriers, locomotive 
     manufacturers, and the Association of American Railroads. The 
     goal of the initiative shall include developing and 
     demonstrating locomotive technologies that increase fuel 
     economy, reduce emissions, improve safety, and lower costs.


  (b) There are authorized to be appropriated to carry out the 
requirements of this section $50,000,000 in fiscal year 2002, 
$60,000,000 in fiscal year 2003, and $70,000,000 in fiscal year 
2004.

                         TITLE III--OIL AND GAS

           Subtitle A--Deepwater and Frontier Royalty Relief

SEC. 4301. SHORT TITLE.
  This subtitle may be cited as the ``Outer Continental Shelf Deep 
Water and Frontier Royalty Relief Act''.
SEC. 4302. AMENDMENTS TO THE OUTER CONTINENTAL SHELF LANDS ACT.
  (a) Section 8(a)(1)(D) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337(a)(1)(D)) is amended by striking the word ``area;'' 
and inserting in lieu thereof the word ``area,'' and the following 
new text: ``except in the Arctic areas of Alaska, where the 
Secretary is authorized to set the net profit share at 16\2/3\ 
percent. For purposes of this section, `Arctic areas' means the 
Beaufort Sea and Chukchi Sea Planning Areas of Alaska;''.
  (b) Section 8(a) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)) is amended by adding at the end the following:
   ``(9) After an oil and gas lease is granted pursuant to any of the 
  bidding systems of paragraph (1) of this subsection, the Secretary 
 shall reduce any future royalty or rental obligation of the lessee on 
any lease issued by the Secretary (and proposed by the lessee for such 
                   reduction) by an amount equal to--
      ``(A) 10 percent of the qualified costs of exploratory wells 
drilled or geophysical work performed on any lease issued by the 
Secretary, whichever is greater, pursuant to this Act in Arctic 
areas of Alaska; and
      ``(B) an additional 10 percent of the qualified costs of any 
such exploratory wells which are located ten or more miles from 
another well drilled for oil and gas.

   For purposes of this Act, `qualified costs' shall mean the costs 
allocated to the exploratory well or geophysical work in support of an 
  exploration program pursuant to the Internal Revenue Code of 1986; 
`exploratory well' shall mean either an exploratory well as defined by 
the United States Securities and Exchange Commission in sections 210.4 
 through 210.10(a)(10) of title 17, Code of Federal Regulations (or a 
 successor regulation), or a well 3 or more miles from any oil or gas 
well or a pipeline which transports oil or gas to a market or terminal; 
 `geophysical work' shall mean all geophysical data gathering methods 
    used in hydrocarbon exploration and includes seismic, gravity, 
magnetic, and electromagnetic measurements; and all distances shall be 
measured in horizontal distance. When a measurement beginning or ending 
    point is a well, the measurement point shall be the bottom hole 
                       location of that well.''.
SEC. 4303. REGULATIONS.
  The Secretary shall promulgate such rules and regulations as are 
necessary to implement the provisions of this subtitle not later 
than 180 days after the date of enactment of this Act.
SEC. 4304. SAVINGS CLAUSE.
  Nothing in this subtitle shall be construed to affect any offshore 
pre-leasing, leasing, or development moratorium, including any 
moratorium applicable to the Eastern Planning Area of the Gulf of 
Mexico located off the Gulf Coast of Florida.

               Subtitle B--Oil and Gas Royalties in Kind

SEC. 4310. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
  (a) Applicability of Section.--Notwithstanding any other provision 
of law, the provisions of this section shall apply to all royalty in 
kind accepted by the Secretary of the Interior under any Federal oil 
or gas lease or permit under section 36 of the Mineral Leasing Act 
(30 U.S.C. 192) or section 27 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1353) or any other mineral leasing law from the date 
of enactment of this Act through September 30, 2006.
  (b) Terms and Conditions.--All royalty accruing to the United 
States under any Federal oil or gas lease or permit under the 
Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) or any other mineral 
leasing law on demand of the Secretary of the Interior shall be paid 
in oil or gas. If the Secretary of the Interior elects to accept the 
royalty in kind--
   (1) delivery by, or on behalf of, the lessee of the royalty amount 
and quality due at the lease satisfies the lessee's royalty obligation 
  for the amount delivered, except that transportation and processing 
 reimbursements paid to, or deductions claimed by, the lessee shall be 
                      subject to review and audit;
  (2) royalty production shall be placed in marketable condition at no 
                       cost to the United States;
                 (3) the Secretary of the Interior may--
      (A) sell or otherwise dispose of any royalty oil or gas taken 
in kind for not less than fair market value; and
      (B) transport or process any oil or gas royalty taken in kind;
   (4) the Secretary of the Interior may, notwithstanding section 3302 
   of title 31, United States Code, retain and use a portion of the 
  revenues from the sale of oil and gas royalties taken in kind that 
    otherwise would be deposited to miscellaneous receipts, without

[[Page 17559]]

regard to fiscal year limitation, or may use royalty production, to pay 
                             the cost of--
      (A) transporting the oil or gas;
      (B) processing the gas; or
      (C) disposing of the oil or gas; and
   (5) the Secretary may not use revenues from the sale of oil and gas 
     royalties taken in kind to pay for personnel, travel or other 
            administrative costs of the Federal Government.
  (c) Reimbursement of Cost.--If the lessee, pursuant to an 
agreement with the United States or as provided in the lease, 
processes the gas or delivers the royalty oil or gas at a point not 
on or adjacent to the lease area, the Secretary of the Interior 
shall reimburse the lessee for the reasonable costs of 
transportation (not including gathering) from the lease to the point 
of delivery or for processing costs, or, at the discretion of the 
Secretary of the Interior, allow the lessee to deduct such 
transportation or processing costs in reporting and paying royalties 
in value for other Federal oil and gas leases.
  (d) Benefit to the United States.--The Secretary shall administer 
any program taking royalty oil or gas in kind only if the Secretary 
determines that the program is providing benefits to the United 
States greater than or equal to those which would be realized under 
a comparable royalty in value program.
  (e) Report to Congress.--For every fiscal year, beginning in 2002 
through 2006, in which the United States takes oil or gas royalties 
within any State or from the outer Continental Shelf in kind, 
excluding royalties taken in kind and sold to refineries under 
subsection (h) of this section, the Secretary of the Interior shall 
provide a report to Congress that describes--
       (1) the methodology or methodologies used by the Secretary 
     to determine compliance with subsection (d), including 
     performance standards for comparing to amounts likely to have 
     been received had royalties been taken in value;
       (2) an explanation of the evaluation that led the Secretary 
     to take royalties in kind from a lease or group of leases, 
     including the expected revenue effect of taking royalties in 
     kind;
       (3) actual amounts realized from taking royalties in kind, 
     and costs and savings associated with taking royalties in 
     kind; and
       (4) an evaluation of other relevant public benefits or 
     detriments associated with taking royalties in kind.
       (f) Deduction of Expenses.--
       (1) Prior to making disbursements under section 35 of the 
     Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the 
     Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) or 
     other applicable provision of law, of revenues derived from 
     the sale of royalty production taken in kind from a lease, 
     the Secretary of the Interior shall deduct amounts paid or 
     deducted under paragraphs (b)(3) and (c), and shall deposit 
     such amounts to miscellaneous receipts.
       (2) If the Secretary of the Interior allows the lessee to 
     deduct transportation or processing costs under paragraph 
     (c), the Secretary of the Interior may not reduce any 
     payments to recipients of revenues derived from any other 
     Federal oil and gas lease as a consequence of that deduction.
       (g) Consultation With States.--The Secretary of the 
     Interior will consult with a State prior to conducting a 
     royalty in kind program within the State and may delegate 
     management of any portion of the Federal royalty in kind 
     program to such State except as otherwise prohibited by 
     Federal law. The Secretary shall also consult annually with 
     any State from which Federal royalty oil or gas is being 
     taken in kind to ensure to the maximum extent practicable 
     that the royalty in kind program provides revenues to the 
     State greater than or equal to those which would be realized 
     under a comparable royalty in value program.
       (h) Provisions for Small Refineries.--
       (1) If the Secretary of the Interior determines that 
     sufficient supplies of crude oil are not available in the 
     open market to refineries not having their own source of 
     supply for crude oil, the Secretary may grant preference to 
     such refineries in the sale of any royalty oil accruing or 
     reserved to the United States under Federal oil and gas 
     leases issued under any mineral leasing law, for processing 
     or use in such refineries at private sale at not less than 
     fair market value.
       (2) In selling oil under this subsection, the Secretary of 
     the Interior may at his discretion prorate such oil among 
     such refineries in the area in which the oil is produced.
       (i) Disposition to Federal Agencies.--
       (1) Any royalty oil or gas taken in kind from onshore oil 
     and gas leases may be sold at not less than the fair market 
     value to any department or agency of the United States.
       (2) Any royalty oil or gas taken in kind from Federal oil 
     and gas leases on the outer Continental Shelf may be disposed 
     of under section 27 of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1353(a)(3)).

Subtitle C--Use of Royalty In Kind Oil To Fill the Strategic Petroleum 
                                Reserve

     SEC. 4320. USE OF ROYALTY IN KIND OIL TO FILL THE STRATEGIC 
                   PETROLEUM RESERVE.

       The Secretary of the Interior shall enter into an agreement 
     with the Secretary of Energy to transfer title to the Federal 
     share of crude oil production from Federal lands for use at 
     the discretion of the Secretary of Energy in filling the 
     Strategic Petroleum Reserve during periods of crude oil 
     market stability. The Secretary of Energy may also use the 
     Federal share of crude oil produced from Federal lands for 
     other disposal within the Federal Government, as he may 
     determine, to carry out the energy policy of the United 
     States.

    Subtitle D--Improvements to Federal Oil and Gas Lease Management

     SEC. 4330. SHORT TITLE.

       This subtitle may be cited as the ``Federal Oil and Gas 
     Lease Management Improvement Act of 2000''.

     SEC. 4331. DEFINITIONS.

       In this subtitle:
       (1) Application for a permit to drill.--The term 
     ``application for a permit to drill'' means a drilling plan 
     including design, mechanical, and engineering aspects for 
     drilling a well.
       (2) Federal land.--
       (A) In general.--The term ``Federal land'' means all land 
     and interests in land owned by the United States that are 
     subject to the mineral leasing laws, including mineral 
     resources or mineral estates reserved to the United States in 
     the conveyance of a surface or non-mineral estate.
       (B) Exclusion.--The term ``Federal land'' does not 
     include--
       (i) Indian land (as defined in section 3 of the Federal Oil 
     and Gas Royalty Management Act of 1982 (30 U.S.C. 1702)); or
       (ii) submerged land on the outer Continental Shelf (as 
     defined in section 2 of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1331)).
       (3) Oil and gas conservation authority.--The term ``oil and 
     gas conservation authority'' means the agency or agencies in 
     each State responsible for regulating for conservation 
     purposes operations to explore for and produce oil and 
     natural gas.
       (4) Project.--The term ``project'' means an activity by a 
     lessee, an operator, or an operating rights owner to explore 
     for, develop, produce, or transport oil or gas resources.
       (5) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of the Interior, with respect to land 
     under the administrative jurisdiction of the Department of 
     the Interior; and
       (B) the Secretary of Agriculture, with respect to land 
     under the administrative jurisdiction of the Department of 
     Agriculture.
       (6) Surface use plan of operations.--The term ``surface use 
     plan of operations'' means a plan for surface use, 
     disturbance, and reclamation.

     SEC. 4332. NO PROPERTY RIGHT.

       Nothing in this subtitle gives a State a property right or 
     interest in any Federal lease or land.

     SEC. 4333. TRANSFER OF AUTHORITY.

       (a) Notification.--Not before the date that is 180 days 
     after the date of enactment of this Act, a State may notify 
     the Secretary of its intent to accept authority for 
     regulation of operations, as described in subparagraphs (A) 
     through (K) of subsection (b)(2), under oil and gas leases on 
     Federal land within the State.
       (b) Transfer of Authority.--
       (1) In general.--Effective 180 days after the Secretary 
     receives the State's notice, authority for the regulation of 
     oil and gas leasing operations is transferred from the 
     Secretary to the State.
       (2) Authority included.--The authority transferred under 
     paragraph (1) includes--
       (A) processing and approving applications for permits to 
     drill, subject to surface use agreements and other terms and 
     conditions determined by the Secretary;
       (B) production operations;
       (C) well testing;
       (D) well completion;
       (E) well spacing;
       (F) communication;
       (G) conversion of a producing well to a water well;
       (H) well abandonment procedures;
       (I) inspections;
       (J) enforcement activities; and
       (K) site security.
       (c) Retained Authority.--The Secretary shall--
       (1) retain authority over the issuance of leases and the 
     approval of surface use plans of operations and project-level 
     environmental analyses; and
       (2) spend appropriated funds to ensure that timely 
     decisions are made respecting oil and gas leasing, taking 
     into consideration multiple uses of Federal land, 
     socioeconomic and environmental impacts, and the results of 
     consultations with State and local government officials.

     SEC. 4334. ACTIVITY FOLLOWING TRANSFER OF AUTHORITY.

       (a) Federal Agencies.--Following the transfer of authority, 
     no Federal agency shall exercise the authority formerly held 
     by the Secretary as to oil and gas lease operations and 
     related operations on Federal land.
       (b) State Authority.--
       (1) In general.--Following the transfer of authority, each 
     State shall enforce its own oil and gas conservation laws and 
     requirements pertaining to transferred oil and gas

[[Page 17560]]

     lease operations and related operations with due regard to 
     the national interest in the expedited, environmentally sound 
     development of oil and gas resources in a manner consistent 
     with oil and gas conservation principles.
       (2) Appeals.--Following a transfer of authority under 
     section 4333, an appeal of any decision made by a State oil 
     and gas conservation authority shall be made in accordance 
     with State administrative procedures.
       (c) Pending Enforcement Actions.--The Secretary may 
     continue to enforce any pending actions respecting acts 
     committed before the date on which authority is transferred 
     to a State under section 4333 until those proceedings are 
     concluded.
       (d) Pending Applications.--
       (1) Transfer to state.--All applications respecting oil and 
     gas lease operations and related operations on Federal land 
     pending before the Secretary on the date on which authority 
     is transferred under section 4333 shall be immediately 
     transferred to the oil and gas conservation authority of the 
     State in which the lease is located.
       (2) Action by the state.--The oil and gas conservation 
     authority shall act on the application in accordance with 
     State laws (including regulations) and requirements.

     SEC. 4335. COMPENSATION FOR COSTS.

       (a) In General.--Subject to the availability of 
     appropriations, the Secretary shall compensate any State for 
     costs incurred to carry out the authorities transferred under 
     section 4333.
       (b) Payment Schedule.--Payments shall be made not less 
     frequently than every quarter.
       (c) Cost Breakdown Report.--Each State seeking compensation 
     shall report to the Secretary a cost breakdown for the 
     authorities transferred.

     SEC. 4336. APPLICATIONS.

       (a) Limitation on Cost Recovery.--Notwithstanding sections 
     304 and 504 of the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1734, 1764) and section 9701 of title 31, 
     United States Code, the Secretary shall not recover the 
     Secretary's costs with respect to applications and other 
     documents relating to oil and gas leases.
       (b) Completion of Planning Documents and Analyses.--
       (1) In general.--The Secretary shall complete any resource 
     management planning documents and analyses not later than 90 
     days after receiving any offer, application, or request for 
     which a planning document or analysis is required to be 
     prepared.
       (2) Preparation by applicant or lessee.--If the Secretary 
     is unable to complete the document or analysis within the 
     time prescribed by paragraph (1), the Secretary shall notify 
     the applicant or lessee of the opportunity to prepare the 
     required document or analysis for the agency's review and use 
     in decisionmaking.
       (c) Reimbursement for Costs of NEPA Analyses, 
     Documentation, and Studies.--If--
       (1) adequate funding to enable the Secretary to timely 
     prepare a project-level analysis required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to an oil or gas lease is not appropriated; and
       (2) the lessee, operator, or operating rights owner 
     voluntarily pays for the cost of the required analysis, 
     documentation, or related study;

     the Secretary shall reimburse the lessee, operator, or 
     operating rights owner for its costs through royalty credits 
     attributable to the lease, unit agreement, or project area.

     SEC. 4337. TIMELY ISSUANCE OF DECISIONS.

       (a) In General.--The Secretary shall ensure the timely 
     issuance of Federal agency decisions respecting oil and gas 
     leasing and operations on Federal land.
       (b) Offer To Lease.--
       (1) Deadline.--The Secretary shall accept or reject an 
     offer to lease not later than 90 days after the filing of the 
     offer.
       (2) Failure to meet deadline.--If an offer is not acted 
     upon within that time, the offer shall be deemed to have been 
     accepted.
       (c) Application for Permit To Drill.--
       (1) Deadline.--The Secretary and a State that has accepted 
     a transfer of authority under section 4333 shall approve or 
     disapprove an application for permit to drill not later than 
     30 days after receiving a complete application.
       (2) Failure to meet deadline.--If the application is not 
     acted on within the time prescribed by paragraph (1), the 
     application shall be deemed to have been approved.
       (d) Surface Use Plan of Operations.--The Secretary shall 
     approve or disapprove a surface use plan of operations not 
     later than 30 days after receipt of a complete plan.
       (e) Administrative Appeals.--
       (1) Deadline.--From the time that a Federal oil and gas 
     lessee or operator files a notice of administrative appeal of 
     a decision or order of an officer or employee of the 
     Department of the Interior or the Forest Service respecting a 
     Federal oil and gas Federal lease, the Secretary shall have 2 
     years in which to issue a final decision in the appeal.
       (2) Failure to meet deadline.--If no final decision has 
     been issued within the time prescribed by paragraph (1), the 
     appeal shall be deemed to have been granted.

     SEC. 4338. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

       (a) In General.--The Secretary shall ensure that 
     unwarranted denials and stays of lease issuance and 
     unwarranted restrictions on lease operations are eliminated 
     from the administration of oil and gas leasing on Federal 
     land.
       (b) Land Designated for Multiple Use.--
       (1) In general.--Land designated as available for multiple 
     use under Bureau of Land Management resource management plans 
     and Forest Service leasing analyses shall be available for 
     oil and gas leasing without lease stipulations more stringent 
     than restrictions on surface use and operations imposed under 
     the laws (including regulations) of the State oil and gas 
     conservation authority unless the Secretary includes in the 
     decision approving the management plan or leasing analysis a 
     written explanation why more stringent stipulations are 
     warranted.
       (2) Appeal.--Any decision to require a more stringent 
     stipulation shall be administratively appealable and, 
     following a final agency decision, shall be subject to 
     judicial review.
       (c) Rejection of Offer To Lease.--
       (1) In general.--If the Secretary rejects an offer to lease 
     on the ground that the land is unavailable for leasing, the 
     Secretary shall provide a written, detailed explanation of 
     the reasons the land is unavailable for leasing.
       (2) Previous resource management decision.--If the 
     determination of unavailability is based on a previous 
     resource management decision, the explanation shall include a 
     careful assessment of whether the reasons underlying the 
     previous decision are still persuasive.
       (3) Segregation of available land from unavailable land.--
     The Secretary may not reject an offer to lease land available 
     for leasing on the ground that the offer includes land 
     unavailable for leasing, and the Secretary shall segregate 
     available land from unavailable land, on the offeror's 
     request following notice by the Secretary, before acting on 
     the offer to lease.
       (d) Disapproval or Required Modification of Surface Use 
     Plans of Operations and Application for Permit To Drill.--The 
     Secretary shall provide a written, detailed explanation of 
     the reasons for disapproving or requiring modifications of 
     any surface use plan of operations or application for permit 
     to drill.
       (e) Effectiveness of Decision.--A decision of the Secretary 
     respecting an oil and gas lease shall be effective pending 
     administrative appeal to the appropriate office within the 
     Department of the Interior or the Department of Agriculture 
     unless that office grants a stay in response to a petition 
     satisfying the criteria for a stay established by section 
     4.21(b) of title 43, Code of Federal Regulations (or any 
     successor regulation).

     SEC. 4339. REPORTS.

       (a) In General.--Not later than March 31, 2002, the 
     Secretaries shall jointly submit to Congress a report 
     explaining the most efficient means of eliminating 
     overlapping jurisdiction, duplication of effort, and 
     inconsistent policymaking and policy implementation as 
     between the Bureau of Land Management and the Forest Service.
       (b) Recommendations.--The report shall include 
     recommendations on statutory changes needed to implement the 
     report's conclusions.

              Subtitle E--Royalty Reinvestment in America

     SEC. 4351. ROYALTY INCENTIVE PROGRAM.

       (a) In General.--To encourage exploration and development 
     expenditures on Federal land and the outer Continental Shelf 
     for the development of oil and gas resources when the cash 
     price of West Texas Intermediate crude oil, as posted on the 
     Dow Jones Commodities Index chart is less than $18 per barrel 
     for 90 consecutive pricing days or when natural gas prices as 
     delivered at Henry Hub, Louisiana, are less than $2.30 per 
     million British thermal units for 90 consecutive days, the 
     Secretary shall allow a credit against the payment of 
     royalties on Federal oil production and gas production, 
     respectively, in an amount equal to 20 percent of the capital 
     expenditures made on exploration and development activities 
     on Federal oil and gas leases.
       (b) No Crediting Against Onshore Federal Royalty 
     Obligations.--In no case shall such capital expenditures made 
     on outer Continental Shelf leases be credited against onshore 
     Federal royalty obligations.

                           TITLE IV--NUCLEAR

                  Subtitle A--Price-Anderson Amendments

     SEC. 4401. SHORT TITLE.

       This subtitle may be cited as the ``Price-Anderson 
     Amendments Act of 2001''.

     SEC. 4402. INDEMNIFICATION AUTHORITY.

       (a) Indemnification of NRC Licensees.--Section 170c. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is amended by 
     striking ``August 1, 2002'' each place it appears and 
     inserting ``August 1, 2012''.
       (b) Indemnification of DOE Contractors.--Section 
     170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d)(1)(A)) is amended by striking ``, until August 1, 
     2002,''.
       (c) Indemnification of Nonprofit Educational 
     Institutions.--Section 170k. of the Atomic Energy Act of 1954 
     (42 U.S.C. 2210(k)) is amended by striking ``August 1, 2002'' 
     each

[[Page 17561]]

     place it appears and inserting ``August 1, 2012''.

     SEC. 4403. DOE LIABILITY LIMIT.

       (a) Aggregate Liability Limit.--Section 170d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(d)) is amended by striking 
     paragraph (2) and inserting the following:
       ``(2) In agreements of indemnification entered into under 
     paragraph (1), the Secretary--
       ``(A) may require the contractor to provide and maintain 
     financial protection of such a type and in such amounts as 
     the Secretary shall determine to be appropriate to cover 
     public liability arising out of or in connection with the 
     contractual activity; and
       ``(B) shall indemnify the persons indemnified against such 
     claims above the amount of the financial protection required, 
     in the amount of $10,000,000,000 (subject to adjustment for 
     inflation under subsection t.), in the aggregate, for all 
     persons indemnified in connection with such contract and for 
     each nuclear incident, including such legal costs of the 
     contractor as are approved by the Secretary.''.
       (b) Contract Amendments.--Section 170d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(d)) is further amended by 
     striking paragraph (3) and inserting the following:
       ``(3) All agreements of indemnification under which the 
     Department of Energy (or its predecessor agencies) may be 
     required to indemnify any person, shall be deemed to be 
     amended, on the date of enactment of the Price-Anderson 
     Amendments Act of 2001, to reflect the amount of indemnity 
     for public liability and any applicable financial protection 
     required of the contractor under this subsection on such 
     date.''.

     SEC. 4404. INCIDENTS OUTSIDE THE UNITED STATES.

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

     SEC. 4405. REPORTS.

       Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(p)) is amended by striking ``August 1, 1998'' and 
     inserting ``August 1, 2008''.

     SEC. 4406. INFLATION ADJUSTMENT.

       Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(t)) is amended--
       (1) by renumbering paragraph (2) as paragraph (3); and
       (2) by adding after paragraph (1) the following:
       ``(2) The Secretary shall adjust the amount of 
     indemnification provided under an agreement of 
     indemnification under subsection d. not less than once during 
     each 5-year period following the date of enactment of the 
     Price-Anderson Amendments Act of 2001, in accordance with the 
     aggregate percentage change in the Consumer Price Index 
     since--
       ``(A) such date of enactment, in the case of the first 
     adjustment under this subsection; or
       ``(B) the previous adjustment under this subsection.''.

     SEC. 4407. CIVIL PENALTIES.

       (a) Repeal of Automatic Remission.--Section 234Ab.(2) of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is 
     amended by striking the last sentence.
       (b) Limitation for Nonprofit Institutions.--Section 234A of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282a) is further 
     amended by striking subsection d. and inserting the 
     following:
       ``d. Notwithstanding subsection a., no contractor, 
     subcontractor, or supplier considered to be nonprofit under 
     the Internal Revenue Code of 1954 shall be subject to a civil 
     penalty under this section in excess of the amount of any 
     performance fee paid by the Secretary to such contractor, 
     subcontractor, or supplier under the contract under which the 
     violation or violations; occur.''.

     SEC. 4408. EFFECTIVE DATE.

       (a) In General.--The amendments made by this subtitle shall 
     become effective on the date of enactment of this Act.
       (b) Indemnification Provisions.--The amendments made by 
     sections 4403 and 4404 shall not apply to any nuclear 
     incident occurring before the date of enactment of this Act.
       (c) Civil Penalty Provisions.--The amendments made by 
     section 4407 to section 234A of the Atomic Energy Act of 1954 
     (42 U.S.C. 2282a(b)(2)) shall not apply to any violation 
     occurring under a contract entered into before the date of 
     enactment of this Act.

           Subtitle B--Funding From the Department of Energy

     SEC. 4410. NUCLEAR ENERGY RESEARCH INITIATIVE.

       There are authorized to be appropriated $60,000,000 for 
     fiscal year 2002 and such sums as are necessary for each 
     fiscal year thereafter for a Nuclear Energy Research 
     Initiative to be managed by the Director of the Office of 
     Nuclear Energy, for grants to be competitively awarded and 
     subject to peer review for research relating to nuclear 
     energy. The Secretary of Energy shall submit to the Committee 
     on Science and the Committee on Appropriations in the House 
     of Representatives, and to the Committee on Energy and 
     Natural Resources and the Committee on Appropriations of the 
     Senate, an annual report on the activities of the Nuclear 
     Energy Research Initiative.

     SEC. 4411. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.

        There are authorized to be appropriated $10,000,000 for 
     fiscal year 2002 and such sums as are necessary for each 
     fiscal year thereafter for a Nuclear Energy Plant 
     Optimization Program to be managed by the Director of the 
     Office of Nuclear Energy, for a joint program with industry 
     cost-shared by at least 50 percent and subject to annual 
     review by the Secretary of Energy's Nuclear Energy Research 
     Advisory Council. The Secretary of Energy shall submit to the 
     Committee on Science and the Committee on Appropriations in 
     the House of Representatives, and to the Committee on Energy 
     and Natural Resources and the Committee on Appropriations of 
     the Senate, an annual report on the activities of the Nuclear 
     Energy Plant Optimization Program.

     SEC. 4412. NUCLEAR ENERGY TECHNOLOGY DEVELOPMENT PROGRAM.

       There are authorized to be appropriated $25,000,000 for 
     fiscal year 2002 and such sums as are necessary for each 
     fiscal year thereafter for a Nuclear Energy Technology 
     Development Program to be managed by the Director of the 
     Office of Nuclear Energy, for a roadmap to design and develop 
     a new nuclear energy facility in the United States and 
     subject to annual review by the Secretary of Energy's Nuclear 
     Energy Research Advisory Council. The Secretary of Energy 
     shall submit to the Committee on Science and the Committee on 
     Appropriations in the House of Representatives, and to the 
     Committee on Energy and Natural Resources and the Committee 
     on Appropriations of the Senate, an annual report on the 
     activities of the Nuclear Technology Development Program.

 Subtitle C--Grants for Incentive Payments for Capital Improvements To 
                          Increase Efficiency

     SEC. 4420. NUCLEAR ENERGY PRODUCTION INCENTIVES.

       (a) Incentive Payments.--For electric energy generated and 
     sold by an existing nuclear energy facility during the 
     incentive period, the Secretary of Energy shall make, subject 
     to the availability of appropriations, incentive payments to 
     the owner or operator of such facility. The amount of such 
     payment made to any such owner or operator shall be as 
     determined under subsection (e) of this section. Payments 
     under this section may only be made upon receipt by the 
     Secretary of an incentive payment application, which 
     establishes that the applicant is eligible to receive such 
     payment and which satisfies such other requirements as the 
     Secretary deems necessary. Such application shall be in such 
     form, and shall be submitted at such time, as the Secretary 
     shall establish.
       (b) Definitions.--For purposes of this section:
       (1) Qualified nuclear energy facility.--The term 
     ``qualified nuclear energy facility'' means an existing 
     reactor used to generate electricity for sale.
       (2) Existing reactor.--The term ``existing reactor'' means 
     any nuclear reactor the construction of which was completed 
     and licensed by the Nuclear Regulatory Commission before the 
     date of enactment of this section.
       (c) Incentive Period.--A qualified nuclear energy facility 
     may receive payments under this section for a period of 15 
     years (referred to in this section as the ``incentive 
     period'').
       (d) Amount of Payment.--
       (1) Payments made by the Secretary under this section to 
     the owner or operator of a nuclear energy facility shall be 
     based on the increased volume of kilowatt hours of 
     electricity generated by the qualified nuclear energy 
     facility during the incentive period. The amount of such 
     payment shall be 1 mill for each kilowatt-hour produced in 
     excess of the total generation produced over the most recent 
     calendar year prior to the first fiscal year in which payment 
     is sought. Such payment is subject to the availability of 
     appropriations under subsection (f), except that no facility 
     may receive more than $2,000,000 in 1 calendar year.
       (2) The amount of the payment made to any person under this 
     section as provided in paragraph (1) shall be adjusted for 
     inflation for each fiscal year beginning after calendar year 
     2001 in the same manner as provided in the provisions of 
     section 29(d)(2)(B) of the Internal Revenue Code of 1986, 
     except that in applying such provisions, the calendar year 
     2001 shall be substituted for the calendar year 1979.
       (e) Sunset.--No payment may be made under this section to 
     any nuclear energy facility after the expiration of the 
     period of 20 fiscal years beginning with fiscal year 2001, 
     and no payment may be made under this section to any such 
     facility after a payment has been made with respect to such 
     facility for a period of 15 fiscal years.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out the purposes 
     of this section $50,000,000 for each of the fiscal years 2001 
     through 2015.

[[Page 17562]]



     SEC. 4421. NUCLEAR ENERGY EFFICIENCY IMPROVEMENT.

       (a) Incentive Payments.--The Secretary of Energy shall make 
     incentive payments to the owners or operators of qualified 
     nuclear energy facilities to be used to make capital 
     improvements in the facilities that are directly related to 
     improving the electrical output efficiency of such facilities 
     by at least 1 percent.
       (b) Limitations.--
       (1) Incentive payments under this section shall not exceed 
     10 percent of the costs of the capital improvement concerned 
     and not more than 1 payment may be made with respect to 
     improvements at a single facility.
       (2) No payments in excess of $1,000,000 in the aggregate 
     may be made with respect to improvements at a single 
     facility.
       (3) Payments may be made by the Department or used by a 
     facility to offset the costs of NRC permitting fees for a 
     capital improvement.
       (4) Payments made by the Department to the Nuclear 
     Regulatory Commission for permitting an improvement that can 
     impact multiple facilities are not subject to the limitation 
     in (b)(2).
       (c) Authorization.--There is authorized to be appropriated 
     to carry out this section not more than $20,000,000 in each 
     fiscal year after fiscal year 2001.

   TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY SECURITY ACT OF 2001

     SEC. 4501. SHORT TITLE.

       This title may be cited as the ``Arctic Coastal Plain 
     Domestic Energy Security Act of 2001''.

     SEC. 4502. DEFINITIONS.

       When used in this title the term--
       (1) ``1002 Area'' means that area identified as ``Coastal 
     Plain'' in the map entitled ``Arctic National Wildlife 
     Refuge'', dated August 1980, as referenced in section 1002(b) 
     of the Alaska National Interest Lands Conservation Act of 
     1980 (16 U.S.C. 3142(b)(1)) comprising approximately 
     1,549,000 acres; and
       (2) ``Secretary'', except as otherwise provided, means the 
     Secretary of the Interior or the Secretary's designee.

     SEC. 4503. LEASING PROGRAM FOR LANDS WITHIN THE ANWR 1002 
                   AREA.

       (a) Authorization.--Congress hereby authorizes and directs 
     the Secretary, acting through the Bureau of Land Management 
     in consultation with the Fish and Wildlife Service and other 
     appropriate Federal offices and agencies, to take such 
     actions as are necessary to establish and implement a 
     competitive oil and gas leasing program that will result in 
     an environmentally sound program for the exploration, 
     development, and production of the oil and gas resources of 
     the 1002 Area and to administer the provisions of this title 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the 1002 Area will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, and shall require 
     the application of the best commercially available technology 
     for oil and gas exploration, development, and production, on 
     all new exploration, development, and production operations, 
     and whenever practicable, on existing operations, and in a 
     manner to ensure the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal.--The prohibitions and limitations contained in 
     section 1003 of the Alaska National Interest Lands 
     Conservation Act of 1980 (16 U.S.C. 3143) are hereby 
     repealed.
       (c) Compatibility.--Congress hereby determines that the oil 
     and gas leasing program and activities authorized by this 
     section in the 1002 Area are compatible with the purposes for 
     which the Arctic National Wildlife Refuge was established, 
     and that no further findings or decisions are required to 
     implement this determination.
       (d) Sole Authority.--This title shall be the sole authority 
     for leasing on the 1002 Area: Provided, That nothing in this 
     title shall be deemed to expand or limit State and local 
     regulatory authority.
       (e) Federal Land.--The 1002 Area shall be considered 
     ``Federal land'' for the purposes of the Federal Oil and Gas 
     Royalty Management Act of 1982.
       (f) Special Areas.--The Secretary, after consultation with 
     the State of Alaska, City of Kaktovik, and the North Slope 
     Borough, is authorized to designate up to a total of 45,000 
     acres of the 1002 Area as Special Areas and close such areas 
     to leasing if the Secretary determines that these Special 
     Areas are of such unique character and interest so as to 
     require special management and regulatory protection. The 
     Secretary may, however, permit leasing of all or portions of 
     any Special Areas within the 1002 Area by setting lease terms 
     that limit or condition surface use and occupancy by lessees 
     of such lands but permit the use of horizontal drilling 
     technology from sites on leases located outside the 
     designated Special Areas.
       (g) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the 1002 Area to oil and gas 
     leasing and to exploration, development, and production is 
     that set forth in this title.
       (h) Conveyance.--In order to maximize Federal revenues by 
     removing clouds on title of lands and clarifying land 
     ownership patterns within the 1002 Area, the Secretary, 
     notwithstanding the provisions of section 1302(h)(2) of the 
     Alaska National Interest Lands Conservation Act (16 U.S.C. 
     3192(h)(2)), is authorized and directed to convey (1) to the 
     Kaktovik Inupiat Corporation the surface estate of the lands 
     described in paragraph 2 of Public Land Order 6959, to the 
     extent necessary to fulfill the Corporation's entitlement 
     under section 12 of the Alaska Native Claims Settlement Act 
     (43 U.S.C. 1611), and (2) to the Arctic Slope Regional 
     Corporation the subsurface estate beneath such surface estate 
     pursuant to the August 9, 1983, agreement between the Arctic 
     Slope Regional Corporation and the United States of America.

     SEC. 4504. RULES AND REGULATIONS.

       (a) Promulgation.--The Secretary shall prescribe such rules 
     and regulations as may be necessary to carry out the purposes 
     and provisions of this title, including rules and regulations 
     relating to protection of the fish and wildlife, their 
     habitat, subsistence resources, and the environment of the 
     1002 Area. Such rules and regulations shall be promulgated 
     not later than fourteen months after the date of enactment of 
     this title and shall, as of their effective date, apply to 
     all operations conducted under a lease issued or maintained 
     under the provisions of this title and all operations on the 
     1002 Area related to the leasing, exploration, development 
     and production of oil and gas.
       (b) Revision of Regulations.--The Secretary shall 
     periodically review and, if appropriate, revise the rules and 
     regulations issued under subsection (a) of this section to 
     reflect any significant biological, environmental, or 
     engineering data which come to the Secretary's attention.

     SEC. 4505. ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S 
                   LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT.

       The ``Final Legislative Environmental Impact Statement'' 
     (April 1987) prepared pursuant to section 1002 of the Alaska 
     National Interest Lands Conservation Act of 1980 (16 U.S.C. 
     3142) and section 102(2)(C) of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is hereby found by 
     Congress to be adequate to satisfy the legal and procedural 
     requirements of the National Environmental Policy Act of 1969 
     with respect to actions authorized to be taken by the 
     Secretary to develop and promulgate the regulations for the 
     establishment of the leasing program authorized by this 
     title, to conduct the first lease sale and any subsequent 
     lease sale authorized by this title, and to grant rights-of-
     way and easements to carry out the purposes of this title.

     SEC. 4506. LEASE SALES.

       (a) Lease Sales.--Lands may be leased pursuant to the 
     provisions of this title to any person qualified to obtain a 
     lease for deposits of oil and gas under the Mineral Leasing 
     Act (30 U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the 1002 Area for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale; and
       (2) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sales on 1002 Area.--The Secretary shall, by 
     regulation, provide for lease sales of lands on the 1002 
     Area. When lease sales are to be held, they shall occur after 
     the nomination process provided for in subsection (b) of this 
     section. For the first lease sale, the Secretary shall offer 
     for lease those acres receiving the greatest number of 
     nominations, but no less than 200,000 acres and no more than 
     300,000 acres shall be offered. If the total acreage 
     nominated is less than 200,000 acres, the Secretary shall 
     include in such sales any other acreage which he believes has 
     the highest resource potential, but in no event shall more 
     than 300,000 acres be offered in such sale. With respect to 
     subsequent lease sales, the Secretary shall offer for lease 
     no less than 200,000 acres of the 1002 Area. The initial 
     lease sale shall be held within 20 months of the date of 
     enactment of this title. The second lease sale shall be held 
     not later than 2 years after the initial sale, with 
     additional sales conducted not later than 1 year thereafter 
     so long as sufficient interest in development exists to 
     warrant, in the Secretary's judgment, the conduct of such 
     sales.

     SEC. 4507. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary is authorized to grant to 
     the highest responsible qualified bidder by sealed 
     competitive cash bonus bid any lands to be leased on the 1002 
     Area upon payment by the lessee of such bonus as may be 
     accepted by the Secretary and of such royalty as may be fixed 
     in the lease, which shall be not less than 12\1/2\ percent in 
     amount or value of the production removed or sold from the 
     lease.
       (b) Antitrust Review.--Following each notice of a proposed 
     lease sale and before the acceptance of bids and the issuance 
     of leases based on such bids, the Secretary shall allow the 
     Attorney General, in consultation with the Federal Trade 
     Commission, 30 days to perform an antitrust review of the 
     results of such lease sale on the likely effects the

[[Page 17563]]

     issuance of such leases would have on competition and the 
     Attorney General shall advise the Secretary with respect to 
     such review, including any recommendation for the 
     nonacceptance of any bid or the imposition of terms or 
     conditions on any lease, as may be appropriate to prevent any 
     situation inconsistent with the antitrust laws.
       (c) Subsequent Transfers.--No lease issued under this title 
     may be sold, exchanged, assigned, sublet, or otherwise 
     transferred except with the approval of the Secretary. Prior 
     to any such approval the Secretary shall consult with, and 
     give due consideration to the views of, the Attorney General.
       (d) Immunity.--Nothing in this title shall be deemed to 
     convey to any person, association, corporation, or other 
     business organization immunity from civil or criminal 
     liability, or to create defenses to actions, under any 
     antitrust law.
       (e) Definitions.--As used in this section, the term--
       (1) ``antitrust review'' shall be deemed an ``antitrust 
     investigation'' for the purposes of the Antitrust Civil 
     Process Act (15 U.S.C. 1311 et seq.); and
       (2) ``antitrust laws'' means the Acts referred to in 
     section 1 of the Clayton Act (15 U.S.C. 12).

     SEC. 4508. LEASE TERMS AND CONDITIONS.

       An oil or gas lease issued pursuant to this title shall--
       (1) be for a tract consisting of a compact area not to 
     exceed 5,760 acres, or 9 surveyed or protracted sections 
     which shall be as compact in form as possible;
       (2) be for an initial period of 10 years and shall be 
     extended for so long thereafter as oil or gas is produced in 
     paying quantities from the lease or unit area to which the 
     lease is committed or for so long as drilling or reworking 
     operations, as approved by the Secretary, are conducted on 
     the lease or unit area;
       (3) require the payment of royalty as provided for in 
     section 4507 of this title;
       (4) require that exploration activities pursuant to any 
     lease issued or maintained under this title shall be 
     conducted in accordance with an exploration plan or a 
     revision of such plan approved by the Secretary;
       (5) require that all development and production pursuant to 
     a lease issued or maintained pursuant to this title shall be 
     conducted in accordance with development and production plans 
     approved by the Secretary;
       (6) require posting of bond as required by section 4509 of 
     this title;
       (7) provide that the Secretary may close, on a seasonal 
     basis, portions of the 1002 Area to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (8) contain such provisions relating to rental and other 
     fees as the Secretary may prescribe at the time of offering 
     the area for lease;
       (9) provide that the Secretary may direct or assent to the 
     suspension of operations and production under any lease 
     granted under the terms of this title in the interest of 
     conservation of the resource or where there is no available 
     system to transport the resource. If such a suspension is 
     directed or assented to by the Secretary, any payment of 
     rental prescribed by such lease shall be suspended during 
     such period of suspension of operations and production, and 
     the term of the lease shall be extended by adding any such 
     suspension period thereto;
       (10) provide that whenever the owner of a nonproducing 
     lease fails to comply with any of the provisions of this 
     title, or of any applicable provision of Federal or State 
     environmental law, or of the lease, or of any regulation 
     issued under this title, such lease may be canceled by the 
     Secretary if such default continues for more than thirty days 
     after mailing of notice by registered letter to the lease 
     owner at the lease owner's post office address of record;
       (11) provide that whenever the owner of any producing lease 
     fails to comply with any of the provisions of this title, or 
     of any applicable provision of Federal or State environmental 
     law, or of the lease, or of any regulation issued under this 
     title, such lease may be forfeited and canceled by any 
     appropriate proceeding brought by the Secretary in any United 
     States district court having jurisdiction under the 
     provisions of this title;
       (12) provide that cancellation of a lease under this title 
     shall in no way release the owner of the lease from the 
     obligation to provide for reclamation of the lease site;
       (13) allow the lessee, at the discretion of the Secretary, 
     to make written relinquishment of all rights under any lease 
     issued pursuant to this title. The Secretary shall accept 
     such relinquishment by the lessee of any lease issued under 
     this title where there has not been surface disturbance on 
     the lands covered by the lease;
       (14) provide that for the purpose of conserving the natural 
     resources of any oil or gas pool, field, or like area, or any 
     part thereof, and in order to avoid the unnecessary 
     duplication of facilities, to protect the environment of the 
     1002 Area, and to protect correlative rights, the Secretary 
     shall require that, to the greatest extent practicable, 
     lessees unite with each other in collectively adopting and 
     operating under a cooperative or unit plan of development for 
     operation of such pool, field, or like area, or any part 
     thereof, and the Secretary is also authorized and directed to 
     enter into such agreements as are necessary or appropriate 
     for the protection of the United States against drainage;
       (15) require that the holder of a lease or leases on lands 
     within the 1002 Area shall be fully responsible and liable 
     for the reclamation of those lands within and any other 
     Federal lands adversely affected in connection with 
     exploration, development, production or transportation 
     activities on a lease within the 1002 Area by the holder of a 
     lease or as a result of activities conducted on the lease by 
     any of the leaseholder's subcontractors or agents;
       (16) provide that the holder of a lease may not delegate or 
     convey, by contract or otherwise, the reclamation 
     responsibility and liability to another party without the 
     express written approval of the Secretary;
       (17) provide that the standard of reclamation for lands 
     required to be reclaimed under this title be, as nearly as 
     practicable, a condition capable of supporting the uses which 
     the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (18) contain the terms and conditions relating to 
     protection of fish and wildlife, their habitat, and the 
     environment, as required by section 4503(a) of this title;
       (19) provide that the holder of a lease, its agents, and 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (20) require project agreements to the extent feasible that 
     will ensure productivity and consistency recognizing a 
     national interest in both labor stability and the ability of 
     construction labor and management to meet the particular 
     needs and conditions of projects to be developed under leases 
     issued pursuant to this title; and
       (21) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this title and the regulations issued under this title.

     SEC. 4509. BONDING REQUIREMENTS TO ENSURE FINANCIAL 
                   RESPONSIBILITY OF LESSEE AND AVOID FEDERAL 
                   LIABILITY.

       (a) Requirement.--The Secretary shall, by rule or 
     regulation, establish such standards as may be necessary to 
     ensure that an adequate bond, surety, or other financial 
     arrangement will be established prior to the commencement of 
     surface disturbing activities on any lease, to ensure the 
     complete and timely reclamation of the lease tract, and the 
     restoration of any lands or surface waters adversely affected 
     by lease operations after the abandonment or cessation of oil 
     and gas operations on the lease. Such bond, surety, or 
     financial arrangement is in addition to, and not in lieu of, 
     any bond, surety, or financial arrangement required by any 
     other regulatory authority or required by any other provision 
     of law.
       (b) Amount.--The bond, surety, or financial arrangement 
     shall be in an amount--
       (1) to be determined by the Secretary to provide for 
     reclamation of the lease site in accordance with an approved 
     or revised exploration or development and production plan; 
     plus
       (2) set by the Secretary consistent with the type of 
     operations proposed, to provide the means for rapid and 
     effective cleanup, and to minimize damages resulting from an 
     oil spill, the escape of gas, refuse, domestic wastewater, 
     hazardous or toxic substances, or fire caused by oil and gas 
     activities.
       (c) Adjustment.--In the event that an approved exploration 
     or development and production plan is revised, the Secretary 
     may adjust the amount of the bond, surety, or other financial 
     arrangement to conform to such modified plan.
       (d) Duration.--The responsibility and liability of the 
     lessee and its surety under the bond, surety, or other 
     financial arrangement shall continue until such time as the 
     Secretary determines that there has been compliance with the 
     terms and conditions of the lease and all applicable laws.
       (e) Termination.--Within 60 days after determining that 
     there has been compliance with the terms and conditions of 
     the lease and all applicable laws, the Secretary, after 
     consultation with affected Federal and State agencies, shall 
     notify the lessee that the period of liability under the 
     bond, surety, or other financial arrangement has been 
     terminated.

     SEC. 4510. OIL AND GAS INFORMATION.

       (a) In General.--(1) Any lessee or permittee conducting any 
     exploration for, or development or production of, oil or gas 
     pursuant to this title shall provide the Secretary access to 
     all data and information from any lease granted pursuant to 
     this title (including processed and analyzed) obtained from 
     such activity and shall provide copies of such data and 
     information as the Secretary may request. Such data and 
     information shall be provided in accordance with regulations 
     which the Secretary shall prescribe.

[[Page 17564]]

       (2) If processed and analyzed information provided pursuant 
     to paragraph (1) is provided in good faith by the lessee or 
     permittee, such lessee or permittee shall not be responsible 
     for any consequence of the use or of reliance upon such 
     processed and analyzed information.
       (3) Whenever any data or information is provided to the 
     Secretary, pursuant to paragraph (1)--
       (A) by a lessee or permittee, in the form and manner of 
     processing which is utilized by such lessee or permittee in 
     the normal conduct of business, the Secretary shall pay the 
     reasonable cost of reproducing such data and information; or
       (B) by a lessee or permittee, in such other form and manner 
     of processing as the Secretary may request, the Secretary 
     shall pay the reasonable cost of processing and reproducing 
     such data and information.
       (b) Regulations.--The Secretary shall prescribe regulations 
     to:
       (1) ensure that the confidentiality of privileged or 
     proprietary information received by the Secretary under this 
     section will be maintained; and
       (2) set forth the time periods and conditions which shall 
     be applicable to the release of such information.

     SEC. 4511. EXPEDITED JUDICIAL REVIEW.

       (a) Any complaint seeking judicial review of any provision 
     in this title, or any other action of the Secretary under 
     this title may be filed in any appropriate district court of 
     the United States, and such complaint must be filed within 
     ninety days from the date of the action being challenged, or 
     after such date if such complaint is based solely on grounds 
     arising after such ninetieth day, in which case the complaint 
     must be filed within ninety days after the complainant knew 
     or reasonably should have known of the grounds for the 
     complaint: Provided, That any complaint seeking judicial 
     review of an action of the Secretary in promulgating any 
     regulation under this title may be filed only in the United 
     States Court of Appeals for the District of Columbia.
       (b) Actions of the Secretary with respect to which review 
     could have been obtained under this section shall not be 
     subject to judicial review in any civil or criminal 
     proceeding for enforcement.

     SEC. 4512. RIGHTS-OF-WAY ACROSS THE 1002 AREA.

       Notwithstanding title XI of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3161 et seq.), the 
     Secretary is authorized and directed to grant, in accordance 
     with the provisions of subsections (c) through (t) and (v) 
     through (y) of section 28 of the Mineral Leasing Act of 1920 
     (30 U.S.C. 185), rights-of-way and easements across the 1002 
     Area for the transportation of oil and gas under such terms 
     and conditions as may be necessary so as not to result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the 1002 Area. Such terms and conditions shall include 
     requirements that facilities be sited or modified so as to 
     avoid unnecessary duplication of roads and pipelines. The 
     regulations issued as required by section 4504 of this title 
     shall include provisions granting rights-of-way and easements 
     across the 1002 Area.

     SEC. 4513. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL 
                   REGULATIONS TO ENSURE COMPLIANCE WITH TERMS AND 
                   CONDITIONS OF LEASE.

       (a) Responsibility of the Secretary.--The Secretary shall 
     diligently enforce all regulations, lease terms, conditions, 
     restrictions, prohibitions, and stipulations promulgated 
     pursuant to this title.
       (b) Responsibility of Holders of Lease.--It shall be the 
     responsibility of any holder of a lease under this title to--
       (1) maintain all operations within such lease area in 
     compliance with regulations intended to protect persons and 
     property on, and fish and wildlife, their habitat, 
     subsistence resources, and the environment of, the 1002 Area; 
     and
       (2) allow prompt access at the site of any operations 
     subject to regulation under this title to any appropriate 
     Federal or State inspector, and to provide such documents and 
     records which are pertinent to occupational or public health, 
     safety, or environmental protection, as may be requested.
       (c) On-Site Inspection.--The Secretary shall promulgate 
     regulations to provide for--
       (1) scheduled onsite inspection by the Secretary, at least 
     twice a year, of each facility on the 1002 Area which is 
     subject to any environmental or safety regulation promulgated 
     pursuant to this title or conditions contained in any lease 
     issued pursuant to this title to ensure compliance with such 
     environmental or safety regulations or conditions; and
       (2) periodic onsite inspection by the Secretary at least 
     once a year without advance notice to the operator of such 
     facility to ensure compliance with all environmental or 
     safety regulations.

     SEC. 4514. NEW REVENUES.

       (a) Deposit Into Treasury.--Notwithstanding any other 
     provision of law, all revenues received by the Federal 
     Government from competitive bids, sales, bonuses, royalties, 
     rents, fees, or interest derived from the leasing of oil and 
     gas within the 1002 Area shall be deposited into the Treasury 
     of the United States, solely as provided in this section. The 
     Secretary of the Treasury shall pay to the State of Alaska 
     the same percentage of such revenues as is set forth under 
     the heading ``EXPLORATION OF NATIONAL PETROLEUM RESERVE IN 
     ALASKA'' in Public Law 96-514 (94 Stat. 2957, 2964) 
     semiannually to the State of Alaska, on March 30 and 
     September 30 of each year and shall deposit the balance of 
     all such revenues as miscellaneous receipts in the Treasury. 
     Notwithstanding any other provision of law, the Secretary of 
     the Treasury shall monitor the total revenue deposited into 
     the Treasury as miscellaneous receipts from oil and gas 
     leases issued under the authority of this subtitle and shall 
     deposit amounts received as bonus bids into a special fund 
     established in the Treasury of the United States known as the 
     Renewable Energy Research and Development Fund (referred to 
     in this section as the ``Renewable Energy Fund'').
       (b) Use of Renewable Energy Fund.--Of the amounts in the 
     Renewable Energy Fund, an amount equal to ten percent of the 
     total deposits shall be made available to the Secretary of 
     Energy, without further appropriation, at the beginning of 
     each fiscal year in which amounts are available, and may be 
     expended by the Secretary of Energy for research and 
     development of renewable domestic energy resources of wind, 
     solar, biomass, geothermal and hydroelectric. Such amounts 
     shall remain available until expended and shall be in 
     addition to funds appropriated in the preceding fiscal year 
     to the Secretary of Energy for renewable energy research, 
     development and demonstration programs authorized by section 
     103 of the Energy Reorganization Act of 1974 (42 U.S.C. 
     5813). The Secretary of Energy shall develop procedures for 
     the use of the Renewable Energy Fund that ensure 
     accountability and demonstrated results. Beginning the first 
     full fiscal year after deposits are made into the Renewable 
     Energy Fund, the Secretary of Energy shall submit an annual 
     report to the Committee on Energy and Natural Resources of 
     the United States Senate and the appropriate committees of 
     the United States House of Representatives detailing the use 
     of any expenditures.

TITLE VI--ENERGY EFFICIENCY, CONSERVATION, AND ASSISTANCE TO LOW-INCOME 
                                FAMILIES

     SEC. 4601. EXTENSION OF LOW INCOME HOME ENERGY ASSISTANCE 
                   PROGRAM.

       (a) Authorization of Appropriations.--Section 2602(b) of 
     the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
     8621), is amended by striking ``such sums as may be necessary 
     for each of fiscal years 2000 and 2001, and $2,000,000,000 
     for each of fiscal years 2002 through 2004'' and inserting 
     ``$3,000,000,000 for each of fiscal years 2000 through 
     2010''.
       (b) Payments to States.--Section 2602(d)(2) of the Omnibus 
     Budget Reconciliation Act of 1981 (42 U.S.C. 8621) is amended 
     by striking ``2004'' and inserting ``2010''.
       (c) Emergency Funds.--Section 2602(e) of the Omnibus Budget 
     Reconciliation Act of 1981 (42 U.S.C. 8621), is amended by 
     striking ``$600,000,000'' and inserting ``$1,000,000,000''.

     SEC. 4602. ENERGY EFFICIENT SCHOOLS PROGRAM.

       (a) Establishment.--There is established in the Department 
     of Energy the Energy Efficient Schools Program (referred to 
     in this section as the ``Program'').
       (b) In General.--The Secretary of Energy may, through the 
     Program, make grants to--
       (1) be provided to school districts to implement the 
     purpose of this section;
       (2) administer the program of assistance to school 
     districts pursuant to this section; and
       (3) promote participation by school districts in the 
     program established by this section.
       (c) Grants To Assist School Districts.--Grants under 
     subsection (b)(1) shall be used to achieve energy efficiency 
     performance not less than 30 percent beyond the levels 
     prescribed in the 1998 International Energy Conservation Code 
     as it is in effect for new construction and existing 
     buildings. Grants under such subsection shall be made to 
     school districts that have--
       (1) demonstrated a need for such grants in order to respond 
     appropriately to increasing elementary and secondary school 
     enrollments or to make major investments in renovation of 
     school facilities;
       (2) demonstrated that the districts do not have adequate 
     funds to respond appropriately to such enrollments or achieve 
     such investments without assistance; and
       (3) made a commitment to use the grant funds to develop 
     energy efficient school buildings in accordance with the plan 
     developed and approved pursuant to subsection (e)(1).
       (d) Other Grants.--
       (1) Grants for administration.--Grants under subsection 
     (b)(2) shall be used to evaluate compliance by school 
     districts with the requirements of this section and in 
     addition may be used for--
       (A) distributing information and materials to clearly 
     define and promote the development of energy efficient school 
     buildings for both new and existing facilities;
       (B) organizing and conducting programs for school board 
     members, school district personnel, architects, engineers, 
     and others to advance the concepts of energy efficient school 
     buildings;

[[Page 17565]]

       (C) obtaining technical services and assistance in planning 
     and designing energy efficient school buildings; and
       (D) collecting and monitoring data and information 
     pertaining to the energy efficient school building projects.
       (2) Grants to promote participation.--Grants under 
     subsection (b)(3) may be used for promotional and marketing 
     activities, including facilitating private and public 
     financing, promoting the use of energy service companies, 
     working with school administrations, students, and 
     communities, and coordinating public benefit programs.
       (e) Implementation.--
       (1) Plans.--Grants under subsection (b) shall be provided 
     only to school districts that, in consultation with State 
     offices of energy and education, have developed plans that 
     the State energy office determines to be feasible and 
     appropriate in order to achieve the purposes for which such 
     grants were made.
       (2) Supplementing grant funds.--The State agency referred 
     to in paragraph (1) shall encourage qualifying school 
     districts to supplement their grant funds with funds from 
     other sources in the implementation of their plans.
       (f) Allocation of Funds.--Except as provided in subsection 
     (c), funds appropriated for the implementation of this 
     section shall be provided to State energy offices to 
     administer the program of assistance to school districts 
     under this section.
       (g) Purposes.--Except as provided in subsection (c), funds 
     appropriated under this section shall be allocated as 
     follows:
       (1) Seventy percent shall be used to make grants under 
     subsection (b)(1).
       (2) Fifteen percent shall be used to make grants under 
     subsection (b)(2).
       (3) Fifteen percent shall be used to make grants under 
     subsection (b)(3).
       (h) Other Funds.--The Secretary of Energy may, through the 
     Program established under subsection (a), retain an amount, 
     not exceed $300,000 per year, to assist State energy offices 
     in coordinating and implementing such Program. Such funds may 
     be used to develop reference materials to further define the 
     principles and criteria to achieve energy efficient school 
     buildings.
       (i) Authorization of Appropriations.--For this section, 
     there are authorized to be appropriated $200,000,000 for each 
     of fiscal years 2002 through 2005, and such sums as may be 
     necessary for each of fiscal years 2006 through 2011.
       (j) Definitions.--
       (1) Elementary and secondary school.--The terms 
     ``elementary school'' and ``secondary school'' shall have the 
     same meaning given such terms in paragraphs (14) and (25) of 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801(14), (25)).
       (2) Energy efficient school building.--The term ``energy 
     efficient school building'' refers to a school building 
     which, in its design, construction, operation, and 
     maintenance maximizes use of renewable energy and efficient 
     energy practices, is cost-effective on a life-cycle basis, 
     uses affordable, environmentally preferable, durable 
     materials, enhances indoor environmental quality, protects 
     and conserves water, and optimizes site potential.
       (3) Renewable energy.--The term ``renewable energy'' means 
     energy produced by solar, wind, geothermal, hydroelectric 
     power, and biomass power.

     SEC. 4603. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

       (a) Eligibility.--Section 412(7) of the Energy Conservation 
     and Production Act (42 U.S.C. 6862(7)) is amended--
       (1) in paragraph (7)(A), by striking ``125'' and inserting 
     ``150''; and
       (2) in paragraph (7)(C), by striking ``125'' and inserting 
     ``150''.
       (b) Authorization of Appropriations.--Section 422(a) of the 
     Energy Conservation and Production Act (42 U.S.C. 6872(a)) is 
     amended--
       (1) by striking ``$200,000,000'' and inserting 
     ``$250,000,000''; and
       (2) by striking ``1991'' and all that follows through 
     ``1994.'' and inserting ``2002, $325,000,000 for fiscal year 
     2003, $400,000,000 for fiscal year 2004, $500,000,000 for 
     fiscal year 2005, and such sums as are necessary for each 
     fiscal year thereafter.''.

     SEC. 4604. AMENDMENTS TO STATE ENERGY PROGRAM.

       (a) State Energy Conservation Plans.--Section 362 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6322) is 
     amended by--
       (1) redesignating subsection (f) as subsection (g); and
       (2) inserting after subsection (e) the following:
       ``(f) The Secretary shall, at least once every 3 years, 
     invite the Governor of each State to review and, if 
     necessary, revise the energy conservation plan of such State 
     submitted under subsection (b) or (e). Such reviews should 
     consider the energy conservation plans of other States within 
     the region, and identify opportunities and actions carried 
     out in pursuit of common energy conservation goals.''.
       (b) State Energy Efficiency Goals.--Section 364 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6324) is 
     amended--
       (1) by striking ``October 1, 1991'' and inserting ``January 
     1, 2001'';
       (2) by striking ``10'' and inserting ``25''; and
       (3) by striking ``2000'' and inserting ``2010''.
       (c) Authorization of Appropriations.--Section 365(f)(1) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6325(f)(1)) 
     is amended by striking ``and'' and all that follows through 
     ``1993.'' and inserting ``$45,000,000 for fiscal year 1993, 
     $75,000,000 for fiscal year 2002, $100,000,000 for fiscal 
     years 2003 and 2004, $125,000,000 for fiscal year 2005, and 
     such sums as are necessary for each fiscal year 
     thereafter.''.

     SEC. 4605. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO 
                   FEDERAL ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Energy Savings Through Construction of Replacement 
     Facilities.--Section 804 of the National Energy Conservation 
     Policy Act (42 U.S.C. 8287c) is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by inserting ``(A)'' after ``(2)''; and
       (C) by adding at the end the following:
       ``(B) The term `energy savings' also means a reduction in 
     the cost of energy, from such a base cost established through 
     a methodology set forth in the contract, that would otherwise 
     be utilized in 1 or more existing federally owned buildings 
     or other federally owned facilities by reason of the 
     construction and operation of 1 or more new buildings or 
     facilities.''; and
       (2) in paragraph (3), by inserting after the first sentence 
     the following: ``The terms also mean a contract that provides 
     for energy savings through the construction or operation of 1 
     or more new buildings or facilities.''.
       (b) 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:
       ``(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 1 or more 
     buildings or facilities to replace 1 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 
     new and/or additional buildings or facilities, from a base 
     cost of operation and maintenance 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.''.
       (c) 5-Year Extension of Authority.--Section 801(c) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287(c)) 
     is amended by striking ``October 1, 2003'' and inserting 
     ``October 1, 2008''.
       (d) Utility Incentive Programs.--Section 546(e) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8256(c)) 
     is amended--
       (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. Notwithstanding section 201(a)(3) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 481(a)(3)), such contracts or contract terms may be 
     made for periods not exceeding 25 years.''; and
       (2) by adding at the end the following:
       ``(6) A utility incentive program may include a contract or 
     contract term for a reduction in the cost of energy, from a 
     base cost established through a methodology set forth in such 
     a contract, that would otherwise be utilized in 1 or more 
     federally owned buildings or other federally owned facilities 
     by reason of the construction or operation of 1 or more 
     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 and/or additional buildings or facilities when compared 
     with the costs of operation and maintenance at existing 
     buildings or facilities.''.

     SEC. 4606. FEDERAL ENERGY EFFICIENCY REQUIREMENT.

       (a) In General.--Through cost-effective measures, each 
     agency shall reduce energy consumption per gross square foot 
     of its facilities by 30 percent by 2010 and 50 percent by 
     2020 relative to 1990.
       (b) Implementation Plan.--Not later than 1 year after date 
     of enactment of this section, each agency shall develop and 
     submit to Congress and the President an implementation plan 
     for fulfilling the requirements of this section.
       (c) Annual Report.--
       (1) In general.--Each agency shall measure and report 
     annually to Congress and the President its progress in 
     meeting the requirements of this section.
       (2) Guidelines.--The Secretary of Energy, in consultation 
     with the Administrator of

[[Page 17566]]

     the Energy Information Administration, shall develop and 
     issue guidelines for agencies' preparation of their annual 
     report, including guidance on how to measure energy 
     consumption in Federal facilities.
       (d) Exemption of Certain Facilities.--A facility may be 
     deemed exempt when the Secretary determines that compliance 
     with the Energy Policy Act of 1992 is not practical for that 
     particular facility. Not later than 1 year from date of 
     enactment, the Secretary shall, in consultation with the 
     Administrator of the Energy Information Administration, set 
     guidelines for agencies to use in excluding certain kinds of 
     facilities to meet the requirements of this section.
       (e) Applicability.--The Department of Defense is subject to 
     this order only to the extent that it does not impair or 
     adversely affect military operations and training (including 
     tactical aircraft, ships, weapons systems, combat training, 
     and border security).
       (f) Definitions.--For the purposes of this section--
       (1) ``agency'' means an executive agency as defined in 5 
     U.S.C. 105. Military departments, as defined in 5 U.S.C. 102, 
     are covered under the auspices of the Department of Defense.
       (2) ``facility'' means any individual building or 
     collection of buildings, grounds, or structure, as well as 
     any fixture or part thereof, including the associated energy 
     or water-consuming support systems, which is constructed, 
     renovated, or purchased in whole or in part for use by the 
     Federal Government. It includes leased facilities where the 
     Federal Government has a purchase option or facilities 
     planned for purchase. In any provision of this order, the 
     term ``facility'' also includes any building 100 percent 
     leased for use by the Federal Government where the Federal 
     Government pays directly or indirectly for the utility costs 
     associated with its leased space, and Government-owned 
     contractor-operated facilities.

     SEC. 4607. ENERGY EFFICIENCY SCIENCE INITIATIVE.

       There are authorized to be appropriated $25,000,000 for 
     fiscal year 2001 and such sums as are necessary for each 
     fiscal year thereafter, but not to exceed $50,000,000 in any 
     fiscal year, for an Energy Efficiency Science Initiative to 
     be managed by the Assistant Secretary for Energy Efficiency 
     and Renewable Energy in consultation with the Director of the 
     Office of Science, for grants to be competitively awarded and 
     subject to peer review for research relating to energy 
     efficiency. The Secretary of Energy shall submit to the 
     Committee on Science and the Committee on Appropriations of 
     the United States House of Representatives, and to the 
     Committee on Energy and Natural Resources and the Committee 
     on Appropriations of the United States Senate, an annual 
     report on the activities of the Energy Efficiency Science 
     Initiative, including a description of the process used to 
     award the funds and an explanation of how the research 
     relates to energy efficiency.

           TITLE VII--ALTERNATIVE FUELS AND RENEWABLE ENERGY

                     Subtitle A--Alternative Fuels

     SEC. 4701. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR 
                   ALTERNATIVE FUEL VEHICLES.

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

     SEC. 4702. ALTERNATIVE FUEL VEHICLE CREDITS FOR INSTALLATION 
                   OF QUALIFYING INFRASTRUCTURE.

       Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 
     13258) is amended by adding at the end the following:
       ``(e) Credit for Acquisition or Installation of Qualifying 
     Infrastructure.--The Secretary shall allocate an 
     infrastructure credit to a fleet or covered person that is 
     required to acquire an alternative fueled vehicle under this 
     title, or to a Federal fleet as defined by section 303(b)(3) 
     of title III of this Act, for the acquisition or installation 
     of the fuel or the needed infrastructure, including the 
     supply and delivery systems, necessary to operate or maintain 
     the alternative fueled vehicle. Such necessary infrastructure 
     shall include--
       ``(1) equipment required to refuel or recharge the 
     alternative fueled vehicle;
       ``(2) facilities or equipment required to maintain, repair 
     or operate the alternative fueled vehicle;
       ``(3) training programs, educational materials or other 
     activities necessary to provide information regarding the 
     operation, maintenance or benefits associated with the 
     alternative fueled vehicle; and
       ``(4) such other activity as the Secretary deems an 
     appropriate expenditure in support of the operation, 
     maintenance or further wide spread adoption or utilization of 
     the alternative fueled vehicle.
       ``(f) Qualifying Infrastructure Credit.--The term 
     `infrastructure credit' shall mean--
       ``(1) that equipment or activity defined in subsection (e) 
     above; and
       ``(2) be equivalent in cost to the acquisition of an 
     alternative fueled vehicle for which the expenditure on the 
     infrastructure is made.
       ``(g) Limitation on Number of Infrastructure Credits 
     Issued.--Each fleet or covered person that is required to 
     acquire an alternative fueled vehicle under this title, or 
     each Federal fleet as defined by section 303(b)(3) of title 
     III of this Act, shall be limited in the number of 
     infrastructure credits that may be acquired and used to meet 
     the alternative fueled vehicle requirements of this Act to no 
     more than the equivalent of \1/2\ of the alternative fueled 
     vehicles required per annum.''.

     SEC. 4703. STATE AND LOCAL GOVERNMENT USE OF FEDERAL 
                   ALTERNATIVE FUEL REFUELING FACILITIES.

       Section 304 of the Energy Policy Act of 1992 (42 U.S.C. 
     13213) is amended by adding at the end the following:
       ``(c) State and Local Government Owned Vehicles.--Federal 
     agencies may include any alternative fuel vehicles owned by 
     States or local governments in any commercial arrangements 
     for the purpose of fueling Federal alternative fueled 
     vehicles as authorized under subsection (a) of this section. 
     The Secretary may allocate equivalent infrastructure credits 
     to a Federal fleet as defined by section 303(b)(3) of title 
     III of this Act, for the inclusion of such vehicles in any 
     such commercial fueling arrangements.''.

     SEC. 4704. FEDERAL FLEET FUEL ECONOMY AND USE OF ALTERNATIVE 
                   FUELS.

       (a) Fuel Economy.--Through cost-effective measures, each 
     agency shall increase the average EPA fuel economy rating of 
     passenger cars and light trucks acquired by at least 3 miles 
     per gallon by the end of fiscal year 2005 compared to 
     acquisitions in fiscal year 2000.
       (b) Use of Alternative Fuels.--Through cost-effective 
     measures, each agency shall, by the end of fiscal year 2005, 
     use alternative fuels for at least 50 percent of the total 
     annual volume of fuel used by the agency. No more than 25 
     percent of fuel purchased by State and local governments at 
     federally-owned refueling facilities may be included by an 
     agency in meeting the requirement of this section.
       (c) Implementation Plan.--Not later than 1 year after date 
     of enactment of this section, each agency shall develop and 
     submit to Congress and the President an implementation plan 
     for fulfilling the requirements of this section. Each agency 
     should develop an implementation plan that meets its unique 
     fleet configuration and fleet requirements.
       (d) Annual Report.--
       (1) In general.--Each agency shall measure and report 
     annually to Congress and the President its progress in 
     meeting the requirements of this section.
       (2) Guidelines.--The Secretary of Energy, through the 
     Federal Energy Management Program and in consultation with 
     the Administrator of the Energy Information Administration, 
     shall develop and issue guidelines for agencies' preparation 
     of their annual report, including guidance on how to measure 
     fuel economy for the collection and annual reporting of data 
     to demonstrate compliance with the requirements of this 
     section.
       (e) Applicability.--This order applies to each Federal 
     agency operating 20 or more motor vehicles within the United 
     States.
       (f) Exemption of Certain Vehicles.--Department of Defense 
     military tactical vehicles are exempt from this order. Law 
     enforcement, emergency, and any other vehicle class or type 
     determined by the Secretary, in consultation with the Federal 
     Energy Management Program, are exempted from the requirements 
     of this section. Not later than 1 year from date of 
     enactment, the Secretary shall, in consultation with the 
     Federal Energy Management Program, set guidelines for 
     agencies to use in the determination of exemptions.
       (g) Definitions.--In this section:
       (1) Agency.--The term ``agency'' means an executive agency 
     as defined in 5 U.S.C. 105. (Military departments, as defined 
     in 5 U.S.C. 102, are covered under the auspices of the 
     Department of Defense.)
       (2) Alternative fuel.--The term ``alternative fuel'' means 
     any fuel defined as an alternative fuel pursuant to section 
     301 of the Energy Policy Act of 1992 (42 U.S.C. 13211).
       (h) Conforming Amendments.--Section 400AA of the Energy 
     Policy and Conservation Act (42 U.S.C. 6374) is amended as 
     follows:
       (1) in subsection (a)(3)(E), by striking the period at the 
     end and inserting the following: ``, except that, not later 
     than fiscal year 2005 at least 50 percent of the total annual 
     volume of fuel used must be from alternative fuels.''; and
       (2) in subsection (g)(4)(B), after the words, ``solely on 
     alternative fuel'', insert the words ``, including a 3-
     wheeled enclosed electric vehicle having a VIN number''.

     SEC. 4705. LOCAL GOVERNMENT GRANT PROGRAM.

       (a) Establishment.--Within 1 year of date of enactment of 
     this section, the Secretary of Energy shall establish a 
     program for making grants to local governments for covering 
     the incremental cost of qualified alternative fuel motor 
     vehicles.
       (b) Criteria.--In deciding to whom grants shall be made 
     under this subsection, the Secretary of Energy shall consider 
     the goal of assisting the greatest number of applicants, 
     provided that no grant award shall exceed $1,000,000.
       (c) Priorities.--Priority shall be given under this section 
     to those local government fleets where the use of alternative 
     fuels

[[Page 17567]]

     would have a significant beneficial effect on energy security 
     and the environment.
       (d) Qualified Alternative Fuel Motor Vehicle Defined.--For 
     purposes of this section, the term ``qualified motor 
     vehicle'' means any motor vehicle which is capable of 
     operating only on an alternative fuel.
       (e) Incremental Cost.--For purposes of this section, the 
     incremental cost of any qualified alternative fuel motor 
     vehicle is equal to the amount of the excess of the 
     manufacturer's suggested retail price for such vehicle over 
     such price for a gasoline or diesel motor vehicle of the same 
     model.
       (f) Authorization of Appropriations.--For the purposes of 
     this section, there are authorized to be appropriated 
     $100,000,000 annually for each of the fiscal years 2002 
     through 2006.

                      Subtitle B--Renewable Energy

     SEC. 4710. RESIDENTIAL RENEWABLE ENERGY GRANT PROGRAM.

       (a) In General.--The Secretary of Energy shall develop and 
     implement a grant program to offset a portion of the total 
     cost of certain eligible residential renewable energy 
     systems.
       (b) Eligibility.--Grants may be awarded for--
       (1) the new installation of an eligible residential 
     renewable energy system for an existing dwelling unit;
       (2) the purchase of an existing dwelling unit with an 
     eligible residential renewable energy system that was 
     installed prior to the date of enactment of this section;
       (3) the addition to or augmentation of an existing eligible 
     residential renewable energy system installed on a dwelling 
     unit prior to the date of enactment of this section, provided 
     that any such addition or augmentation results in additional 
     electricity, heat, or other useful energy; or
       (4) the construction of a new home or rental property which 
     includes an eligible residential renewable energy system.
       (c) Total Cost.--
       (1) In general.--For purposes of this section, ``total 
     cost'' means expenditure of funds for--
       (A) any equipment whose primary purpose is to provide for 
     the collection, conversion, transfer, distribution, storage 
     or control of electricity or heat generated from renewable 
     energy;
       (B) installation charges;
       (C) labor costs properly allocable to the onsite 
     preparation, assembly, or original installation of the 
     system; and
       (D) piping or wiring to interconnect such system to the 
     dwelling unit.
       (2) Leased systems.--In the case of a system that is 
     leased, ``total cost'' means the principal recovery portion 
     of all lease payments scheduled to be made during the full 
     term of the lease, excluding interest charges and maintenance 
     expenses.
       (3) Existing systems.--In the case of addition to or 
     augmentation of an existing system, ``total cost'' shall 
     include only those expenditures related to the incremental 
     cost of the addition or augmentation, and not the full cost 
     of the system.
       (d) Cost Buy-Down.--Grants provided under this section 
     shall not exceed $3,000 per eligible residential renewable 
     energy system, and shall be limited further as follows:
       (1) For fiscal years 2002 and 2003, grants provided under 
     this section shall be limited to the smaller of--
       (A) 50 percent of the total cost of the energy system; or
       (B) $3.00 per watt of system electricity output or 
     equivalent.
       (2) For fiscal years 2004 and 2005, grants provided under 
     this section shall be limited to the smaller of--
       (A) 40 percent of the total cost of the energy system; or
       (B) $2.50 per watt of system electricity output.
       (3) For fiscal years 2006 and 2007, grants provided under 
     this section shall be limited to the smaller of--
       (A) 30 percent of the total cost of the energy system; or
       (B) $2.00 per watt of system electricity output.
       (4) For fiscal years 2008 and 2009, grants provided under 
     this section shall be limited to the smaller of--
       (A) 20 percent of the total cost of the energy system; or
       (B) $1.50 per watt of system electricity output.
       (5) For fiscal years 2010 and 2011, grants provided under 
     this section shall be limited to the smaller of--
       (A) 10 percent of the total cost of the energy system; or
       (B) $1.00 per watt of system electricity output.
       (e) Limitations.--No grant shall be allowed under this 
     section for an eligible residential renewable energy system 
     unless--
       (1) such expenditure is made for property installed on or 
     in connection with a dwelling unit which is located in the 
     United States and which is used as a residence;
       (2) in the case of solar water heating equipment, such 
     equipment is certified for performance and safety by the 
     nonprofit Solar Rating Certification Corporation or a 
     comparable entity endorsed by the government of the State in 
     which such property is installed; and
       (3) such system meets appropriate fire and electric code 
     requirements.
       (f) Renewable energy.--
       (1) Definitions.--In this subsection:
       (A) Form of renewable energy.--The term ``form of renewable 
     energy'' means energy produced through the use of--
       (i) a solar thermal system;
       (ii) a solar photovoltaic system;
       (iii) wind;
       (iv) biomass;
       (v) a hydroelectric system; or
       (vi) a source of geothermal energy.
       (B) Renewable energy system.--The term ``renewable energy 
     system'' means property that uses a form of renewable energy 
     to create electricity, heat, or any other form of useful 
     energy.
       (2) Solar panels.--No expenditure relating to a solar panel 
     or other property installed as a roof (or portion thereof) 
     shall fail to be treated as property described in paragraph 
     (1) solely because it constitutes a structural component of 
     the structure on which it is installed.
       (3) Energy storage medium.--Expenditures which are properly 
     allocable to a swimming pool, hot tub, or any other energy 
     storage medium which has a function other than the function 
     of such storage shall not be taken into account for purposes 
     of this section.
       (g) Special Rules.--For purposes of this section:
       (1) Tenant-stockholder in cooperative housing 
     corporation.--In the case of an individual who is a tenant-
     stockholder (as defined in 26 U.S.C. 216) in a cooperative 
     housing corporation (as defined in such section), such 
     individual shall be treated as having made his tenant-
     stockholder's proportionate share (as defined in 26 U.S.C. 
     216(b)(3)) of any expenditures of such corporation.
       (2) Condominiums.--
       (A) In general.--In the case of an individual who is a 
     member of a condominium management association with respect 
     to a condominium which he owns, such individual shall be 
     treated as having made his proportionate share of any 
     expenditures of such association.
       (B) Condominium management association.--For purposes of 
     this paragraph, the term ``condominium management 
     association'' means an organization which meets the 
     requirements of paragraph (1) of 26 U.S.C. 528(c) (other than 
     subparagraph (E) thereof) with respect to a condominium 
     project substantially all of the units of which are used as 
     residences.
       (3) Renewable energy systems for multiple dwellings.--
       (A) In general.--Any expenditure otherwise qualifying as an 
     expenditure described in paragraph (1) of subsection (c) 
     shall not be treated as failing to so qualify merely because 
     such expenditure was made with respect to 2 or more dwelling 
     units.
       (B) Limits applied separately.--In the case of any 
     expenditure described in subparagraph (A), the amount of the 
     grant available under subsection (d) shall be computed 
     separately with respect to the amount of the expenditure made 
     for each dwelling unit.
       (h) Annual Report.--The Secretary shall submit to Congress 
     and the President an annual report on grants distributed 
     pursuant to this section. The report shall include, at 
     minimum--
       (1) a summary of the eligible residential renewable energy 
     systems receiving grants in the year just concluded;
       (2) an estimate of new renewable energy generation 
     installed as a result of grants awarded, and its distribution 
     by renewable energy source and geographic location;
       (3) evidence that the program is contributing to declining 
     costs for renewable energy technologies; and
       (4) description of the methods used to award such grants.
       (i) Authorization of Appropriations.--For the purposes of 
     this section, there are authorized to be appropriated 
     $30,000,000 for fiscal year 2002 and such sums as are 
     necessary for each fiscal year thereafter, but not to exceed 
     $150,000,000 in any fiscal year.

     SEC. 4711. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

       (a) In General.--Not later than twelve months after the 
     date of enactment of this section, the Secretary of Energy 
     shall submit to Congress an assessment of all renewable 
     energy resources available within the United States.
       (b) Resource Assessment.--Such 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 of Energy believes would be useful in siting 
     renewable energy generation, such as appropriate terrain, 
     population and load centers, nearby energy infrastructure, 
     and location of energy and water resources.
       (c) Availability.--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.
       (d) Authorization of Appropriations.--For the purposes of 
     carrying out this section, there are authorized to be 
     appropriated $10,000,000 for fiscal years 2002 through 2006.

[[Page 17568]]



               Subtitle C--Hydroelectric Licensing Reform

     SEC. 4721. SHORT TITLE.

       This subtitle may be cited as the ``Hydroelectric Licensing 
     Process Improvement Act of 2001''.

     SEC. 4722. FINDINGS.

       Congress finds that--
       (1) hydroelectric power is an irreplaceable source of 
     clean, economic, renewable energy with the unique capability 
     of supporting reliable electric service while maintaining 
     environmental quality;
       (2) hydroelectric power is the leading renewable energy 
     resource of the United States;
       (3) hydroelectric power projects provide multiple benefits 
     to the United States, including recreation, irrigation, flood 
     control, water supply, and fish and wildlife benefits;
       (4) in the next 15 years, the bulk of all non-Federal 
     hydroelectric power capacity in the United States is due to 
     be relicensed by the Federal Energy Regulatory Commission;
       (5) the process of licensing hydroelectric projects by the 
     Commission--
       (A) does not produce optimal decisions, because the 
     agencies that participate in the process are not required to 
     consider the full effects of their mandatory and recommended 
     conditions on a license;
       (B) is inefficient, in part because agencies do not always 
     submit their mandatory and recommended conditions by a time 
     certain;
       (C) is burdened by uncoordinated environmental reviews and 
     duplicative permitting authority; and
       (D) is burdensome for all participants and too often 
     results in litigation; and
       (6) while the alternative licensing procedures available to 
     applicants for hydroelectric project licenses provide 
     important opportunities for the collaborative resolution of 
     many of the issues in hydroelectric project licensing, those 
     procedures are not appropriate in every case and cannot 
     substitute for statutory reforms of the hydroelectric 
     licensing process.

     SEC. 4723. PURPOSE.

       The purpose of this subtitle is to achieve the objective of 
     relicensing hydroelectric power projects to maintain high 
     environmental standards while preserving low cost power by--
       (1) requiring agencies to consider the full effects of 
     their mandatory and recommended conditions on a hydroelectric 
     power license and to document the consideration of a broad 
     range of factors;
       (2) requiring the Federal Energy Regulatory Commission to 
     impose deadlines by which Federal agencies must submit 
     proposed mandatory and recommended conditions to a license; 
     and
       (3) making other improvements in the licensing process.

     SEC. 4724. PROCESS FOR CONSIDERATION BY FEDERAL AGENCIES OF 
                   CONDITIONS TO LICENSES.

       (a) In General.--Part I of the Federal Power Act (16 U.S.C. 
     791a et seq.) is amended by adding at the end the following:

     ``SEC. 33. PROCESS FOR CONSIDERATION BY FEDERAL AGENCIES OF 
                   CONDITIONS TO LICENSES.

       ``(a) Definitions.--In this section:
       ``(1) Condition.--The term `condition' means--
       ``(A) a condition to a license for a project on a Federal 
     reservation determined by a consulting agency for the purpose 
     of the first proviso of section 4(e); and
       ``(B) a prescription relating to the construction, 
     maintenance, or operation of a fishway determined by a 
     consulting agency for the purpose of the first sentence of 
     section 18.
       ``(2) Consulting agency.--The term `consulting agency' 
     means--
       ``(A) in relation to a condition described in paragraph 
     (1)(A), the Federal agency with responsibility for 
     supervising the reservation; and
       ``(B) in relation to a condition described in paragraph 
     (1)(B), the Secretary of the Interior or the Secretary of 
     Commerce, as appropriate.
       ``(b) Factors To Be Considered.--
       ``(1) In general.--In determining a condition, a consulting 
     agency shall take into consideration--
       ``(A) the impacts of the condition on--
       ``(i) economic and power values;
       ``(ii) electric generation capacity and system reliability;
       ``(iii) air quality (including consideration of the impacts 
     on greenhouse gas emissions); and
       ``(iv) drinking, flood control, irrigation, navigation, or 
     recreation water supply;
       ``(B) compatibility with other conditions to be included in 
     the license, including mandatory conditions of other 
     agencies, when available; and
       ``(C) means to ensure that the condition addresses only 
     direct project environmental impacts, and does so at the 
     lowest project cost.
       ``(2) Documentation.--
       ``(A) In general.--In the course of the consideration of 
     factors under paragraph (1) and before any review under 
     subsection (e), a consulting agency shall create written 
     documentation detailing, among other pertinent matters, all 
     proposals made, comments received, facts considered, and 
     analyses made regarding each of those factors sufficient to 
     demonstrate that each of the factors was given full 
     consideration in determining the condition to be submitted to 
     the Commission.
       ``(B) Submission to the commission.--A consulting agency 
     shall include the documentation under subparagraph (A) in its 
     submission of a condition to the Commission.
       ``(c) Scientific Review.--
       ``(1) In general.--Each condition determined by a 
     consulting agency shall be subjected to appropriately 
     substantiated scientific review.
       ``(2) Data.--For the purpose of paragraph (1), a condition 
     shall be considered to have been subjected to appropriately 
     substantiated scientific review if the review--
       ``(A) was based on current empirical data or field-tested 
     data; and
       ``(B) was subjected to peer review.
       ``(d) Relationship to Impacts on Federal Reservation.--In 
     the case of a condition for the purpose of the first proviso 
     of section 4(e), each condition determined by a consulting 
     agency shall be directly and reasonably related to the 
     impacts of the project within the Federal reservation.
       ``(e) Administrative Review.--
       ``(1) Opportunity for review.--Before submitting to the 
     Commission a proposed condition, and at least 90 days before 
     a license applicant is required to file a license application 
     with the Commission, a consulting agency shall provide the 
     proposed condition to the license applicant and offer the 
     license applicant an opportunity to obtain expedited review 
     before an administrative law judge or other independent 
     reviewing body of--
       ``(A) the reasonableness of the proposed condition in light 
     of the effect that implementation of the condition will have 
     on the energy and economic values of a project; and
       ``(B) compliance by the consulting agency with the 
     requirements of this section, including the requirement to 
     consider the factors described in subsection (b)(1).
       ``(2) Completion of review.--
       ``(A) In general.--A review under paragraph (1) shall be 
     completed not more than 180 days after the license applicant 
     notifies the consulting agency of the request for review.
       ``(B) Failure to make timely completion of review.--If 
     review of a proposed condition is not completed within the 
     time specified by subparagraph (A), the Commission may treat 
     a condition submitted by the consulting agency as a 
     recommendation is treated under section 10(j).
       ``(3) Remand.--If the administrative law judge or reviewing 
     body finds that a proposed condition is unreasonable or that 
     the consulting agency failed to comply with any of the 
     requirements of this section, the administrative law judge or 
     reviewing body shall--
       ``(A) render a decision that--
       ``(i) explains the reasons for a finding that the condition 
     is unreasonable and may make recommendations that the 
     administrative law judge or reviewing body may have for the 
     formulation of a condition that would not be found 
     unreasonable; or
       ``(ii) explains the reasons for a finding that a 
     requirement was not met and may describe any action that the 
     consulting agency should take to meet the requirement; and
       ``(B) remand the matter to the consulting agency for 
     further action.
       ``(4) Submission to the commission.--Following 
     administrative review under this subsection, a consulting 
     agency shall--
       ``(A) take such action as is necessary to--
       ``(i) withdraw the condition;
       ``(ii) formulate a condition that follows the 
     recommendation of the administrative law judge or reviewing 
     body; or
       ``(iii) otherwise comply with this section; and
       ``(B) include with its submission to the Commission of a 
     proposed condition--
       ``(i) the record on administrative review; and
       ``(ii) documentation of any action taken following 
     administrative review.
       ``(f) Submission of Final Condition.--
       ``(1) In general.--After an applicant files with the 
     Commission an application for a license, the Commission shall 
     set a date by which a consulting agency shall submit to the 
     Commission a final condition.
       ``(2) Limitation.--Except as provided in paragraph (3), the 
     date for submission of a final condition shall be not later 
     than 1 year after the date on which the Commission gives the 
     consulting agency notice that a license application is ready 
     for environmental review.
       ``(3) Default.--If a consulting agency does not submit a 
     final condition to a license by the date set under paragraph 
     (1)--
       ``(A) the consulting agency shall not thereafter have 
     authority to recommend or establish a condition to the 
     license; and
       ``(B) the Commission may, but shall not be required to, 
     recommend or establish an appropriate condition to the 
     license that--
       ``(i) furthers the interest sought to be protected by the 
     provision of law that authorizes the consulting agency to 
     propose or establish a condition to the license; and
       ``(ii) conforms to the requirements of this Act.
       ``(4) Extension.--The Commission may make 1 extension, of 
     not more than 30 days, of a deadline set under paragraph (1).

[[Page 17569]]

       ``(g) Analysis by the Commission.--
       ``(1) Economic analysis.--The Commission shall conduct an 
     economic analysis of each condition submitted by a consulting 
     agency to determine whether the condition would render the 
     project uneconomic.
       ``(2) Consistency with this section.--In exercising 
     authority under section 10(j)(2), the Commission shall 
     consider whether any recommendation submitted under section 
     10(j)(1) is consistent with the purposes and requirements of 
     subsections (b) and (c) of this section.
       ``(h) Commission Determination on Effect of Conditions.--
     When requested by a license applicant in a request for 
     rehearing, the Commission shall make a written determination 
     on whether a condition submitted by a consulting agency--
       ``(1) is in the public interest, as measured by the impact 
     of the condition on the factors described in subsection 
     (b)(1);
       ``(2) was subjected to scientific review in accordance with 
     subsection (c);
       ``(3) relates to direct project impacts within the 
     reservation, in the case of a condition for the first proviso 
     of section 4(e);
       ``(4) is reasonable;
       ``(5) is supported by substantial evidence; and
       ``(6) is consistent with this Act and other terms and 
     conditions to be included in the license.''.
       (b) Conforming and Technical Amendments.--
       (1) Section 4.--Section 4(e) of the Federal Power Act (16 
     U.S.C. 797(e)) is amended--
       (A) in the first proviso of the first sentence, by 
     inserting after ``conditions'' the following: ``, determined 
     in accordance with section 33,''; and
       (B) in the last sentence, by striking the period and 
     inserting ``(including consideration of the impacts on 
     greenhouse gas emissions)''.
       (2) Section 18.--Section 18 of the Federal Power Act (16 
     U.S.C. 811) is amended in the first sentence by striking 
     ``prescribed by the Secretary of Commerce'' and inserting 
     ``prescribed, in accordance with section 33, by the Secretary 
     of the Interior or the Secretary of Commerce, as 
     appropriate.''

     SEC. 4725. COORDINATED ENVIRONMENTAL REVIEW PROCESS.

       Part I of the Federal Power Act (16 U.S.C. 791a et seq.) 
     (as amended by section 4724) is amended by adding at the end 
     the following:

     ``SEC. 34. COORDINATED ENVIRONMENTAL REVIEW PROCESS.

       ``(a) Lead Agency Responsibility.--The Commission, as the 
     lead agency for environmental reviews under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
     projects licensed under this part, shall conduct a single 
     consolidated environmental review--
       ``(1) for each such project; or
       ``(2) if appropriate, for multiple projects located in the 
     same area.
       ``(b) Consulting Agencies.--In connection with the 
     formulation of a condition in accordance with section 33, a 
     consulting agency shall not perform any environmental review 
     in addition to any environmental review performed by the 
     Commission in connection with the action to which the 
     condition relates.
       ``(c) Deadlines.--
       ``(1) In general.--The Commission shall set a deadline for 
     the submission of comments by Federal, State, and local 
     government agencies in connection with the preparation of any 
     environmental impact statement or environmental assessment 
     required for a project.
       ``(2) Considerations.--In setting a deadline under 
     paragraph (1), the Commission shall take into consideration--
       ``(A) the need of the license applicant for a prompt and 
     reasonable decision;
       ``(B) the resources of interested Federal, State, and local 
     government agencies; and
       ``(C) applicable statutory requirements.''.

     SEC. 4726. STUDY OF SMALL HYDROELECTRIC PROJECTS.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Federal Energy Regulatory 
     Commission shall submit to the Committee on Energy and 
     Natural Resources of the Senate and the Committee on Commerce 
     of the House of Representatives a study of the feasibility of 
     establishing a separate licensing procedure for small 
     hydroelectric projects.
       (b) Definition of Small Hydroelectric Project.--The 
     Commission may by regulation define the term ``small 
     hydroelectric project'' for the purpose of subsection (a), 
     except that the term shall include at a minimum a 
     hydroelectric project that has a generating capacity of 5 
     megawatts or less.

  TITLE VIII--ELECTRIC SUPPLY RELIABILITY; PURPA REPEAL; PUHCA REPEAL

          Subtitle A--Electric Energy Transmission Reliability

     SEC. 4801. SHORT TITLE.

       This subtitle may be cited as the ``National Electric 
     Reliability Act''.

     SEC. 4802. ELECTRIC ENERGY TRANSMISSION RELIABILITY.

       (a) Electric Reliability Organization and Oversight.--
       (1) In general.--Part II of the Federal Power Act (16 
     U.S.C. 824 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 215. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

       ``(a) Definitions.--In this section:
       ``(1) Affiliated regional reliability entity.--The term 
     `affiliated regional reliability entity' means an entity 
     delegated authority under the provisions of subsection (h).
       ``(2) Bulk power system.--The term `bulk power system' 
     means all facilities and control systems necessary for 
     operating an interconnected transmission grid (or any portion 
     thereof), including high-voltage transmission lines; 
     substations; control centers; communications; data, and 
     operations planning facilities; and the output of generating 
     units necessary to maintain transmission system reliability.
       ``(3) Electric reliability organization, or organization.--
     The term `Electric Reliability Organization' or 
     `Organization' means the organization approved by the 
     Commission under subsection (d)(4).
       ``(4) Entity rule.--The term `entity rule' means a rule 
     adopted by an affiliated regional reliability entity for a 
     specific region and designed to implement or enforce 1 or 
     more Organization Standards. An entity rule shall be approved 
     by the organization and once approved, shall be treated as an 
     Organization Standard.
       ``(5) Industry sector.--The term `industry sector' means a 
     group of users of the bulk power system with substantially 
     similar commercial interests, as determined by the Board of 
     the Electric Reliability Organization.
       ``(6) Interconnection.--The term `interconnection' means a 
     geographic area in which the operation of bulk power system 
     components is synchronized such that the failure of 1 or more 
     such components may adversely affect the ability of the 
     operators of other components within the interconnection to 
     maintain safe and reliable operation of the facilities within 
     their control.
       ``(7) Organization standard.--The term `Organization 
     Standard' means a policy or standard duly adopted by the 
     Electric Reliability Organization to provide for the reliable 
     operation of a bulk power system.
       ``(8) Public interest group.--The term `public interest 
     group' means any nonprofit private or public organization 
     that has an interest in the activities of the Electric 
     Reliability Organization, including, but not limited to, 
     ratepayer advocates, environmental groups, and State and 
     local government organizations that regulate market 
     participants and promulgate government policy.
       ``(9) Variance.--The term `variance' means an exception or 
     variance from the requirements of an Organization Standard 
     (including a proposal for an Organization Standard where 
     there is no Organization Standard) that is adopted by an 
     affiliated regional reliability entity and applicable to all 
     or a part of the region for which the affiliated regional 
     reliability entity is responsible. A variance shall be 
     approved by the organization and once approved, shall be 
     treated as an Organization Standard.
       ``(10) System operator.--The term `system operator' means 
     any entity that operates or is responsible for the operation 
     of a bulk power system, including but not limited to a 
     control area operator, an independent system operator, a 
     regional transmission organization, a transmission company, a 
     transmission system operator, or a regional security 
     coordinator.
       ``(11) User of the bulk power system.--The term `user of 
     the bulk power system' means any entity that sells, 
     purchases, or transmits electric power over a bulk power 
     system, or that owns, operates, or maintains facilities or 
     control systems that are part of a bulk power system, or that 
     is a system operator.
       ``(b) Commission Authority.--
       ``(1) Within the United States, the Commission shall have 
     jurisdiction over the Electric Reliability Organization, all 
     affiliated regional reliability entities, all system 
     operators, and all users of the bulk-power system, for 
     purposes of approving and enforcing compliance with the 
     requirements of this section.
       ``(2) The Commission may, by rule, define any other term 
     used in this section, provided such definition is consistent 
     with the definitions in, and the purpose and intent of, this 
     Act.
       ``(3) Not later than 90 days after the date of enactment of 
     this section, the Commission shall issue a proposed rule for 
     implementing the requirements of this section. The Commission 
     shall provide notice and opportunity for comment on the 
     proposed rule. The Commission shall issue a final rule under 
     this subsection within 180 days after the date of enactment 
     of this section.
       ``(4) Nothing in this section shall be construed as 
     limiting or impairing any authority of the Commission under 
     any other provision of this Act, including its exclusive 
     authority to determine rates, terms, and conditions of 
     transmission services subject to its jurisdiction.
       ``(c) Existing Reliability Standards.--After the date of 
     enactment of this section, and prior to the approval of an 
     organization under subsection (d), any entity, including the 
     North American Electric Reliability Council and its member 
     regional reliability councils, may file any reliability 
     standard,

[[Page 17570]]

     guidance, or practice that such entity would propose to be 
     made mandatory and enforceable. The Commission, after 
     allowing an opportunity to submit comments, may approve any 
     such proposed mandatory standard, guidance, or practice, or 
     any amendment thereto, if it finds that the standard, 
     guidance, or practice, or amendment is just, reasonable, not 
     unduly discriminatory or preferential, and in the public 
     interest. The Commission may, without further proceeding or 
     finding, grant its approval to any standard, guidance, or 
     practice for which no substantive objections are filed in the 
     comment period. Filed standards, guidances, or practices, 
     including any amendments thereto, shall be mandatory and 
     applicable according to their terms following approval by the 
     Commission and shall remain in effect until--
       ``(1) withdrawn, disapproved, or superseded by an 
     Organization Standard, issued or approved by the Electric 
     Reliability Organization and made effective by the Commission 
     under subsection (e); or
       ``(2) disapproved by the Commission if, upon complaint or 
     upon its own motion and after notice and an opportunity for 
     comment, the Commission finds the standard, guidance, or 
     practice unjust, unreasonable, unduly discriminatory, or 
     preferential or not in the public interest.

     Standards, guidances, or practices in effect pursuant to the 
     provisions of this subsection shall be enforceable by the 
     Commission.
       ``(d) Organization Approval.--
       ``(1) Following the issuance of a final Commission rule 
     under subsection (b)(3), an entity may submit an application 
     to the Commission for approval as the Electric Reliability 
     Organization. The applicant shall specify in its application 
     its governance and procedures, as well as its funding 
     mechanism and initial funding requirements.
       ``(2) The Commission shall provide public notice of the 
     application and afford interested parties an opportunity to 
     comment.
       ``(3) The Commission shall approve the application if the 
     Commission determines that the applicant--
       ``(A) has the ability to develop, implement, and enforce 
     standards that provide for an adequate level of reliability 
     of the bulk power system;
       ``(B) permits voluntary membership to any user of the bulk 
     power system or public interest group;
       ``(C) ensures fair representation of its members in the 
     selection of its directors and fair management of its 
     affairs, taking into account the need for efficiency and 
     effectiveness in decisionmaking and operations and the 
     requirements for technical competency in the development of 
     Organization Standards and the exercise of oversight of bulk 
     power system reliability;
       ``(D) ensures that no 2 industry sectors have the ability 
     to control, and no 1 industry sector has the ability to veto, 
     the Electric Reliability Organization's discharge of its 
     responsibilities (including actions by committees 
     recommending standards to the board or other board actions to 
     implement and enforce standards);
       ``(E) provides for governance by a board wholly comprised 
     of independent directors;
       ``(F) provides a funding mechanism and requirements that 
     are just, reasonable, and not unduly discriminatory or 
     preferential and are in the public interest, and which 
     satisfy the requirements of subsection (l);
       ``(G) establishes procedures for development of 
     Organization Standards that provide reasonable notice and 
     opportunity for public comment, taking into account the need 
     for efficiency and effectiveness in decisionmaking and 
     operations and the requirements for technical competency in 
     the development of Organization Standards, and which 
     standards development process has--
       ``(i) openness;
       ``(ii) balance of interests; and
       ``(iii) due process, except that the procedures may include 
     alternative procedures for emergencies;
       ``(H) establishes fair and impartial procedures for 
     implementation and enforcement of Organization Standards, 
     either directly or through delegation to an affiliated 
     regional reliability entity, including the imposition of 
     penalties, limitations on activities, functions, or 
     operations, or other appropriate sanctions;
       ``(I) establishes procedures for notice and opportunity for 
     public observation of all meetings, except that the 
     procedures for public observation may include alternative 
     procedures for emergencies or for the discussion of 
     information the directors determine should take place in 
     closed session, such as litigation, personnel actions, or 
     commercially sensitive information;
       ``(J) provides for the consideration of recommendations of 
     States and State commissions; and
       ``(K) addresses other matters that the Commission may deem 
     necessary or appropriate to ensure that the procedures, 
     governance, and funding of the Electric Reliability 
     Organization are just, reasonable, not unduly discriminatory 
     or preferential, and are in the public interest.
       ``(4) The Commission shall approve only 1 Electric 
     Reliability Organization. If the Commission receives 2 or 
     more timely applications that satisfy the requirements of 
     this subsection, the Commission shall approve only the 
     application it concludes will best implement the provisions 
     of this section.
       ``(e) Establishment of and Modifications to Organization 
     Standards.--
       ``(1) The Electric Reliability Organization shall file with 
     the Commission any new or modified organization standards, 
     including any variances or entity rules, and the Commission 
     shall follow the procedures under paragraph (2) for review of 
     that filing.
       ``(2) Submissions under paragraph (1) shall include--
       ``(A) a concise statement of the purpose of the proposal; 
     and
       ``(B) a record of any proceedings conducted with respect to 
     such proposal.
     The Commission shall provide notice of the filing of such 
     proposal and afford interested entities 30 days to submit 
     comments. The Commission, after taking into consideration any 
     submitted comments, shall approve or disapprove such proposal 
     not later than 60 days after the deadline for the submission 
     of comments, except that the Commission may extend the 60 day 
     period for an additional 90 days for good cause, and except 
     further that if the Commission does not act to approve or 
     disapprove a proposal within the foregoing periods, the 
     proposal shall go into effect subject to its terms, without 
     prejudice to the authority of the Commission thereafter to 
     modify the proposal in accordance with the standards and 
     requirements of this section. Proposals approved by the 
     Commission shall take effect according to their terms but not 
     earlier than 30 days after the effective date of the 
     Commission's order, except as provided in paragraph (3) of 
     this subsection.
       ``(3)(A) In the exercise of its review responsibilities 
     under this subsection, the Commission shall give due weight 
     to the technical expertise of the Electric Reliability 
     Organization with respect to the content of a new or modified 
     organization standard, but shall not defer to the 
     organization with respect to the effect of the standard on 
     competition. The Commission shall approve a proposed new or 
     modified organization standard if it determines the proposal 
     to be just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest.
       ``(B) An existing or proposed organization standard which 
     is disapproved in whole or in part by the Commission shall be 
     remanded to the Electric Reliability Organization for further 
     consideration.
       ``(C) The Commission, on its own motion or upon complaint, 
     may direct the Electric Reliability Organization to develop 
     an organization standard, including modification to an 
     existing organization standard, addressing a specific matter 
     by a date certain if the Commission considers such new or 
     modified organization standard necessary or appropriate to 
     further the purposes of this section. The Electric 
     Reliability Organization shall file any such new or modified 
     organization standard in accordance with this subsection.
       ``(D) An affiliated regional reliability entity may propose 
     a variance or entity rule to the Electric Reliability 
     Organization. The affiliated regional reliability entity may 
     request that the Electric Reliability Organization expedite 
     consideration of the proposal, and may file a notice of such 
     request with the Commission, if expedited consideration is 
     necessary to provide for bulk-power system reliability. If 
     the Electric Reliability Organization fails to adopt the 
     variance or entity rule, either in whole or in part, the 
     affiliated regional reliability entity may request that the 
     Commission review such action. If the Commission determines, 
     after its review of such a request, that the action of the 
     Electric Reliability Organization did not conform to the 
     applicable standards and procedures approved by the 
     Commission, or if the Commission determines that the variance 
     or entity rule is just, reasonable, not unduly discriminatory 
     or preferential, and in the public interest, and that the 
     Electric Reliability Organization has unreasonably rejected 
     the proposed variance or entity rule, then the Commission may 
     remand the proposed variance or entity rule for further 
     consideration by the Electric Reliability Organization or may 
     direct the Electric Reliability Organization or the 
     affiliated regional reliability entity to develop a variance 
     or entity rule consistent with that requested by the 
     affiliated regional reliability entity. Any such variance or 
     entity rule proposed by an affiliated regional reliability 
     entity shall be submitted to the Electric Reliability 
     Organization for review and filing with the Commission in 
     accordance with the procedures specified in this subsection.
       ``(E) Notwithstanding any other provision of this 
     subsection, a proposed organization standard or amendment 
     shall take effect according to its terms if the Electric 
     Reliability Organization determines that an emergency exists 
     requiring that such proposed organization standard or 
     amendment take effect without notice or comment. The Electric 
     Reliability Organization shall notify the Commission 
     immediately following such determination and shall file such 
     emergency organization standard or amendment with the 
     Commission not later than 5 days following such determination 
     and shall include in such filing an explanation of the

[[Page 17571]]

     need for such emergency standard. Subsequently, the 
     Commission shall provide notice of the organization standard 
     or amendment for comment, and shall follow the procedures set 
     out in paragraphs (2) and (3) for review of the new or 
     modified organization standard. Any such organization 
     standard that has gone into effect shall remain in effect 
     unless and until suspended or disapproved by the Commission. 
     If the Commission determines at any time that the emergency 
     organization standard or amendment is not necessary, the 
     Commission may suspend such emergency organization standard 
     or amendment.
       ``(4) All users of the bulk power system shall comply with 
     any organization standard that takes effect under this 
     section.
       ``(f) Coordination With Canada and Mexico.--The Electric 
     Reliability Organization shall take all appropriate steps to 
     gain recognition in Canada and Mexico. The United States 
     shall use its best efforts to enter into international 
     agreements with the appropriate governments of Canada and 
     Mexico to provide for effective compliance with organization 
     standards and to provide for the effectiveness of the 
     Electric Reliability Organization in carrying out its mission 
     and responsibilities. All actions taken by the Electric 
     Reliability Organization, any affiliated regional reliability 
     entity, and the Commission shall be consistent with the 
     provisions of such international agreements.
       ``(g) Changes in Procedures, Governance, or Funding.--
       ``(1) The Electric Reliability Organization shall file with 
     the Commission any proposed change in its procedures, 
     governance, or funding, or any changes in the affiliated 
     regional reliability entity's procedures, governance, or 
     funding relating to delegated functions, and shall include 
     with the filing an explanation of the basis and purpose for 
     the change.
       ``(2) A proposed procedural change may take effect 90 days 
     after filing with the Commission if the change constitutes a 
     statement of policy, practice, or interpretation with respect 
     to the meaning or enforcement of an existing procedure. 
     Otherwise, a proposed procedural change shall take effect 
     only upon a finding by the Commission, after notice and 
     opportunity for comments, that the change is just, 
     reasonable, not unduly discriminatory or preferential, is in 
     the public interest, and satisfies the requirements of 
     subsection (d)(4).
       ``(3) A change in governance or funding shall not take 
     effect unless the Commission finds that the change is just, 
     reasonable, not unduly discriminatory or preferential, in the 
     public interest, and satisfies the requirements of subsection 
     (d)(4).
       ``(4) The Commission, upon complaint or upon its own 
     motion, may require the Electric Reliability Organization to 
     amend the procedures, governance, or funding if the 
     Commission determines that the amendment is necessary to meet 
     the requirements of this section. The Electric Reliability 
     Organization shall file the amendment in accordance with 
     paragraph (1) of this subsection.
       ``(h) Delegations of Authority.--
       ``(1) The Electric Reliability Organization shall, upon 
     request by an entity, enter into an agreement with such 
     entity for the delegation of authority to implement and 
     enforce compliance with organization standards in a specified 
     geographic area if the organization finds that the entity 
     requesting the delegation satisfies the requirements of 
     subparagraphs (A), (B), (C), (D), (F), (J), and (K) of 
     subsection (d)(4), and if the delegation promotes the 
     effective and efficient implementation and administration of 
     bulk power system reliability. The Electric Reliability 
     Organization may enter into an agreement to delegate to the 
     entity any other authority, except that the Electric 
     Reliability Organization shall reserve the right to set and 
     approve standards for bulk power system reliability.
       ``(2) The Electric Reliability Organization shall file with 
     the Commission any agreement entered into under this 
     subsection and any information the Commission requires with 
     respect to the affiliated regional reliability entity to 
     which authority is to be delegated. The Commission shall 
     approve the agreement, following public notice and an 
     opportunity for comment, if it finds that the agreement meets 
     the requirements of paragraph (1), and is just, reasonable, 
     not unduly discriminatory or preferential, and is in the 
     public interest. A proposed delegation agreement with an 
     affiliated regional reliability entity organized on an 
     interconnection-wide basis shall be rebuttably presumed by 
     the Commission to promote the effective and efficient 
     implementation and administration of bulk power system 
     reliability. No delegation by the Electric Reliability 
     Organization shall be valid unless approved by the 
     Commission.
       ``(3)(A) A delegation agreement entered into under this 
     subsection shall specify the procedures for an affiliated 
     regional reliability entity to propose entity rules or 
     variances for review by the Electric Reliability 
     Organization. With respect to any such proposal that would 
     apply on an interconnection-wide basis, the Electric 
     Reliability Organization shall presume such proposal valid if 
     made by an interconnection-wide affiliated regional 
     reliability entity unless the Electric Reliability 
     Organization makes a written finding that the proposal--
       ``(i) was not developed in a fair and open process that 
     provided an opportunity for all interested parties to 
     participate;
       ``(ii) has a significant adverse impact on reliability or 
     commerce in other interconnections;
       ``(iii) fails to provide a level of reliability of the 
     bulk-power system within the interconnection such that it 
     would constitute a serious and substantial threat to public 
     health, safety, welfare, or national security; or
       ``(iv) creates a serious and substantial burden on 
     competitive markets within the interconnection that is not 
     necessary for reliability.
       ``(B) With respect to any such proposal that would apply 
     only to part of an interconnection, the Electric Reliability 
     Organization shall find such proposal valid if the affiliated 
     regional reliability entity or entities making the proposal 
     demonstrate that it--
       ``(i) was developed in a fair and open process that 
     provided an opportunity for all interested parties to 
     participate;
       ``(ii) would not have an adverse impact on commerce that is 
     not necessary for reliability;
       ``(iii) provides a level of bulk power system reliability 
     adequate to protect public health, safety, welfare, and 
     national security, and would not have a significant adverse 
     impact on reliability; and
       ``(iv) in the case of a variance, is based on legitimate 
     differences between regions or between subregions within the 
     affiliated regional reliability entity's geographic area.

     The Electric Reliability Organization shall approve or 
     disapprove such proposal within 120 days, or the proposal 
     shall be deemed approved. Following approval of any such 
     proposal under this paragraph, the Electric Reliability 
     Organization shall seek Commission approval pursuant to the 
     procedures prescribed under subsection (e)(3). Affiliated 
     regional reliability entities may not make requests for 
     approval directly to the Commission except pursuant to 
     subsection (e)(3)(D).
       ``(4) If an affiliated regional reliability entity 
     requests, consistent with paragraph (1) of this subsection, 
     that the Electric Reliability Organization delegate authority 
     to it, but is unable within 180 days to reach agreement with 
     the Electric Reliability Organization with respect to such 
     requested delegation, such entity may seek relief from the 
     Commission. If, following notice and opportunity for comment, 
     the Commission determines that a delegation to the entity 
     would meet the requirements of paragraph (1) above, and that 
     the delegation would be just, reasonable, not unduly 
     discriminatory or preferential, and in the public interest, 
     and that the Electric Reliability Organization has 
     unreasonably withheld such delegation, the Commission may, by 
     order, direct the Electric Reliability Organization to make 
     such delegation.
       ``(5)(A) The Commission may, upon its own motion or upon 
     complaint, and with notice to the appropriate affiliated 
     regional reliability entity or entities, direct the Electric 
     Reliability Organization to propose a modification to an 
     agreement entered into under this subsection if the 
     Commission determines that--
       ``(i) the affiliated regional reliability entity no longer 
     has the capacity to carry out effectively or efficiently its 
     implementation or enforcement responsibilities under that 
     agreement, has failed to meet its obligations under that 
     agreement, or has violated any provision of this section;
       ``(ii) the rules, practices, or procedures of the 
     affiliated regional reliability entity no longer provide for 
     fair and impartial discharge of its implementation or 
     enforcement responsibilities under the agreement;
       ``(iii) the geographic boundary of a transmission entity 
     approved by the Commission is not wholly within the boundary 
     of an affiliated regional reliability entity and such 
     difference is inconsistent with the effective and efficient 
     implementation and administration of bulk power system 
     reliability; or
       ``(iv) the agreement is inconsistent with another 
     delegation agreement as a result of actions taken under 
     paragraph (4) of this subsection.
       ``(B) Following an order of the Commission issued under 
     subparagraph (A), the Commission may suspend the affected 
     agreement if the Electric Reliability Organization or the 
     affiliated regional reliability entity does not propose an 
     appropriate and timely modification. If the agreement is 
     suspended, the Electric Reliability Organization shall assume 
     the previously delegated responsibilities. The Commission 
     shall allow the Electric Reliability Organization and the 
     affiliated regional reliability entity an opportunity to 
     appeal the suspension.
       ``(i) Organization Membership.--Every system operator shall 
     be required to be a member of the electric Reliability 
     Organization and shall be required also to be a member of any 
     affiliated regional reliability entity operating under an 
     agreement effective pursuant to subsection (h) applicable to 
     the region in which the system operator operates or is 
     responsible for the operation of bulkpower system facilities.
       ``(j) Injunctions and Disciplinary Action.--

[[Page 17572]]

       ``(1) Consistent with the range of actions approved by the 
     Commission under subsection (d)(4)(H), the Electric 
     Reliability Organization may impose a penalty, limitation of 
     activities, functions, operations, or other disciplinary 
     action the Electric Reliability Organization finds 
     appropriate against a user of the bulk power system if the 
     Electric Reliability Organization, after notice and an 
     opportunity for interested parties to be heard, issues a 
     finding in writing that the user of the bulk-power system has 
     violated an organization standard. The Electric Reliability 
     Organization shall immediately notify the Commission of any 
     disciplinary action imposed with respect to an act or failure 
     to act of a user of the bulk-power system that affected or 
     threatened to affect bulk power system facilities located in 
     the United States, and the sanctioned party shall have the 
     right to seek modification or rescission of such disciplinary 
     action by the Commission. If the organization finds it 
     necessary to prevent a serious threat to reliability, the 
     organization may seek injunctive relief in a Federal court in 
     the district in which the affected facilities are located.
       ``(2) A disciplinary action taken under paragraph (1) may 
     take effect not earlier than the 30th day after the Electric 
     Reliability Organization files with the Commission its 
     written finding and record of proceedings before the Electric 
     Reliability Organization and the Commission posts its written 
     finding, unless the Commission, on its own motion or upon 
     application by the user of the bulk power system which is the 
     subject of the action, suspends the action. The action shall 
     remain in effect or remain suspended unless and until the 
     Commission, after notice and opportunity for hearing, 
     affirms, sets aside, modifies, or reinstates the action, but 
     the Commission shall conduct such hearing under procedures 
     established to ensure expedited consideration of the action 
     taken.
       ``(3) The Commission, on its own motion or on complaint, 
     may order compliance with an organization standard and may 
     impose a penalty, limitation of activities, functions, or 
     operations, or take such other disciplinary action as the 
     Commission finds appropriate, against a user of the bulk 
     power system with respect to actions affecting or threatening 
     to affect bulk power system facilities located in the United 
     States if the Commission finds, after notice and opportunity 
     for a hearing, that the user of the bulk power system has 
     violated or threatens to violate an organization standard.
       ``(4) The Commission may take such action as is necessary 
     against the Electric Reliability Organization or an 
     affiliated regional reliability entity to ensure compliance 
     with an organization standard, or any Commission order 
     affecting the Electric Reliability Organization or an 
     affiliated regional reliability entity.
       ``(k) Reliability Reports.--The Electric Reliability 
     Organization shall conduct periodic assessments of the 
     reliability and adequacy of the interconnected bulk power 
     system in North America and shall report annually to the 
     Secretary of Energy and the Commission its findings and 
     recommendations for monitoring or improving system 
     reliability and adequacy.
       ``(l) Assessment and Recovery of Certain Costs.--The 
     reasonable costs of the Electric Reliability Organization, 
     and the reasonable costs of each affiliated regional 
     reliability entity that are related to implementation and 
     enforcement of organization standards or other requirements 
     contained in a delegation agreement approved under subsection 
     (h), shall be assessed by the Electric Reliability 
     Organization and each affiliated regional reliability entity, 
     respectively, taking into account the relationship of costs 
     to each region and based on an allocation that reflects an 
     equitable sharing of the costs among all end users. The 
     Commission shall provide by rule for the review of such costs 
     and allocations, pursuant to the standards in this subsection 
     and subsection (d)(4)(F).
       ``(m) Savings Provisions.--
       ``(1) The Electric Reliability Organization shall have 
     authority to develop, implement and enforce compliance with 
     standards for the reliable operation of only the bulk power 
     system.
       ``(2) This section does not provide the Electric 
     Reliability Organization or the Commission with the authority 
     to set and enforce compliance with standards for adequacy or 
     safety of electric facilities or services.
       ``(3) Nothing in this section shall be construed to preempt 
     any authority of any State to take action to ensure the 
     safety, adequacy, and reliability of electric service within 
     that State, as long as such action is not inconsistent with 
     any Organization Standard.
       ``(4) Within 90 days of the application of the Electric 
     Reliability Organization or other affected party, the 
     Commission shall issue a final order determining whether a 
     State action is inconsistent with an Organization Standard, 
     after notice and opportunity for comment, taking into 
     consideration any recommendations of the Electric Reliability 
     Organization.
       ``(5) The Commission, after consultation with the Electric 
     Reliability Organization, may stay the effectiveness of any 
     state action, pending the Commission's issuance of a final 
     order.
       ``(n) Regional Advisory Bodies.--The Commission shall 
     establish a regional advisory body on the petition of at 
     least \2/3\ of the States within a region that have more than 
     one-half of their electric loan served within the region. A 
     regional advisory body shall be composed of 1 member from 
     each participating State in the region, appointed by the 
     Governor of each State, and may include representatives of 
     agencies, States, and provinces outside the United States, 
     upon execution of an international agreement or agreements 
     described in subsection (f). A regional advisory body may 
     provide advice to the electric reliability organization, an 
     affiliated regional reliability entity, or the Commission 
     regarding the governance of an existing or proposed 
     affiliated regional reliability entity within the same 
     region, whether an organization standard, entity rule, or 
     variance proposed to apply within the region is just, 
     reasonable, not unduly discriminatory or preferential, and in 
     the public interest, and whether fees proposed to be assessed 
     within the region are just, reasonable, not unduly 
     discriminatory or preferential, in the public interest, and 
     consistent with the requirements of subsection (l). The 
     Commission may give deference to the advice of any such 
     regional advisory body if that body is organized on an 
     interconnection-wide basis.
       ``(o) Coordination With Regional Transmission 
     Organizations.--
       ``(1) Each regional transmission organization authorized by 
     the Commission shall be responsible for maintaining the 
     short-term reliability of the bulk power system that it 
     operates, consistent with organization standards.
       ``(2) Except as provided in paragraph (5), in connection 
     with a proceeding under subsection (e) to consider a proposed 
     organization standard, each regional transmission 
     organization authorized by the Commission shall report to the 
     Commission, and notify the electric reliability organization 
     and any applicable affiliated regional reliability entity, 
     regarding whether the proposed organization standard hinders 
     or conflicts with that regional transmission organization's 
     ability to fulfill the requirements of any rule, regulation, 
     order, tariff, rate schedule, or agreement accepted, approved 
     or ordered by the Commission. Where such hindrance or 
     conflict is identified, the Commission shall address such 
     hindrance or conflict, and the need for any changes to such 
     rule, order, tariff, rate schedule, or agreement accepted, 
     approved or ordered by the Commission in its order under 
     subsection (e) regarding the proposed standard. Where such 
     hindrance or conflict is identified between a proposed 
     organization standard and a provision of any rule, order, 
     tariff, rate schedule or agreement accepted, approved or 
     ordered by the Commission applicable to a regional 
     transmission organization, nothing in this section shall 
     require a change in the regional transmission organization's 
     obligation to comply with such provision unless the 
     Commission orders such a change and the change becomes 
     effective. If the Commission finds that the tariff, rate 
     schedule, or agreement needs to be changed, the regional 
     transmission organization must expeditiously make a section 
     205 filing to reflect the change. If the Commission finds 
     that the proposed organization standard needs to be changed, 
     it shall remand the proposed organization standard to the 
     electric reliability organization under subsection (e)(3)(B).
       ``(3) Except as provided in paragraph (5), to the extent 
     hindrances and conflicts arise after approval of a 
     reliability standard under subsection (c) or organization 
     standard under subsection (e), each regional transmission 
     organization authorized by the Commission shall report to the 
     Commission, and notify the electric reliability organization 
     and any applicable affiliated regional reliability entity, 
     regarding any reliability standard approved under subsection 
     (c) or organization standard that hinders or conflicts with 
     that regional transmission organization's ability to fulfill 
     the requirements of any rule, regulation, order tariff, rate 
     schedule, or agreement accepted, approved or ordered by the 
     Commission. The Commission shall seek to ensure that such 
     hindrances or conflicts are resolved promptly. Where a 
     hindrance or conflict is identified between a reliability 
     standard or an organization standard and a provision of any 
     rule, order, tariff, rate schedule or agreement accepted, 
     approved or ordered by the Commission applicable to a 
     regional reliability organization, nothing in this section 
     shall require a change in the regional transmission 
     organization's obligation to comply with such provision 
     unless the Commission orders such a change and the change 
     becomes effective. If the Commission finds that the tariff, 
     rate schedule or agreement needs to be changed, the regional 
     transmission organization must expeditiously make a section 
     205 filing to reflect the change. If the Commission finds 
     that an organization standard needs to be changed, it shall 
     order the electric reliability organization to develop and 
     submit a modified organization standard under subsection 
     (e)(3)(C).
       ``(4) An affiliated regional reliability entity and a 
     regional transmission organization operating in the same 
     geographic area shall cooperate to avoid conflicts between 
     implementation and enforcement of organization

[[Page 17573]]

     standards by the affiliated regional reliability entity and 
     implementation and enforcement by the regional transmission 
     organization of tariffs, rate schedules, and agreements 
     accepted, approved or ordered by the Commission. In areas 
     without an affiliated regional reliability entity, the 
     electric reliability organization shall act as the affiliated 
     regional reliability entity for purposes of this paragraph.
       ``(5) Until 180 days after approval of applicable 
     subsection (h)(3) procedures, any reliability standard, 
     guidance, or practice contained in Commission-accepted 
     tariffs, rate schedules, or agreements in effect of any 
     Commission-authorized independent system operator or regional 
     transmission organization shall continue to apply unless the 
     Commission accepts an amendment thereto by the applicable 
     operator or organization, or upon complaint finds them to be 
     unjust, unreasonable, unduly discriminatory or preferential, 
     or not in the public interest. At the conclusion of such 
     transition period, any such reliability standard, guidance, 
     practice, or amendment thereto that the Commission determines 
     is inconsistent with organization standards shall no longer 
     apply.''.
       (2) Enforcement.--Sections 316 and 316A of the Federal 
     Power Act (16 U.S.C. 825o, 825o-1) are amended by striking 
     ``or 214'' each place it appears and inserting ``214, or 
     215''.
       (b) Application of Antitrust Laws.--Notwithstanding any 
     other provision of law, each of the following activities are 
     rebuttably presumed to be in compliance with the antitrust 
     laws of the United States:
       (1) Activities undertaken by the Electric Reliability 
     Organization under section 215 of the Federal Power Act or 
     affiliated regional reliability entity operating under an 
     agreement in effect under section 215(h) of such Act.
       (2) Activities of a member of the Electric Reliability 
     Organization or affiliated regional reliability entity in 
     pursuit of organization objectives under section 215 of the 
     Federal Power Act undertaken in good faith under the rules of 
     the organization.

     Primary jurisdiction, and immunities and other affirmative 
     defenses, shall be available to the extent otherwise 
     applicable.

       Subtitle B--PURPA Mandatory Purchase and Sale Requirements

     SEC. 4803. PURPA MANDATORY PURCHASE AND SALE REQUIREMENTS.

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

 Subtitle C--Repeal of the Public Utility Holding Company Act of 1935 
    and Enactment of the Public Utility Holding Company Act of 2001

     SEC. 4810. SHORT TITLE.

       This subtitle may be cited as the ``Public Utility Holding 
     Company Act of 2001''.

     SEC. 4811. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the Public Utility Holding Company Act of 1935 was 
     intended to facilitate the work of Federal and State 
     regulators by placing certain constraints on the activities 
     of holding company systems;
       (2) developments since 1935, including changes in other 
     regulation and in the electric and gas industries, have 
     called into question the continued relevance of the model of 
     regulation established by that Act;
       (3) there is a continuing need for State regulation in 
     order to ensure the rate protection of utility customers; and
       (4) limited Federal regulation is necessary to supplement 
     the work of State commissions for the continued rate 
     protection of electric and gas utility customers.
       (b) Purposes.--The purposes of this title are--
       (1) to eliminate unnecessary regulation, yet continue to 
     provide for consumer protection by facilitating existing rate 
     regulatory authority through improved Federal and State 
     commission access to books and records of all companies in a 
     holding company system, to the extent that such information 
     is relevant to rates paid by utility customers, while 
     affording companies the flexibility required to compete in 
     the energy markets; and
       (2) to address protection of electric and gas utility 
     customers by providing for Federal and State access to books 
     and records of all companies in a holding company system that 
     are relevant to utility rates.

     SEC. 4812. DEFINITIONS.

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

[[Page 17574]]

     opportunity for hearing, determines to be subject to a 
     controlling influence, directly or indirectly, by such 
     holding company (either alone or pursuant to an arrangement 
     or understanding with 1 or more other persons) so as to make 
     it necessary for the rate protection of utility customers 
     with respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this title 
     upon subsidiary companies of holding companies; and
       (17) the term ``voting security'' means any security 
     presently entitling the owner or holder thereof to vote in 
     the direction or management of the affairs of a company.

     SEC. 4813. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT 
                   OF 1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79a et seq.) is repealed, effective 1 year after the date of 
     enactment of this Act.

     SEC. 4814. FEDERAL ACCESS TO BOOKS AND RECORDS.

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

     SEC. 4815. STATE ACCESS TO BOOKS AND RECORDS.

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

     SEC. 4816. EXEMPTION AUTHORITY.

       (a) Rulemaking.--Not later than 90 days after the effective 
     date of this subtitle, the Commission shall promulgate a 
     final rule to exempt from the requirements of section 4815 
     any person that is a holding company, solely with respect to 
     1 or more--
       (1) qualifying facilities under the Public Utility 
     Regulatory Policies Act of 1978;
       (2) exempt wholesale generators; or
       (3) foreign utility companies.
       (b) Other Authority.--If, upon application or upon its own 
     motion, the Commission finds that the books, records, 
     accounts, memoranda, and other records of any person are not 
     relevant to the jurisdictional rates of a public utility or 
     natural gas company, or if the Commission finds that any 
     class of transactions is not relevant to the jurisdictional 
     rates of a public utility or natural gas company, the 
     Commission shall exempt such person or transaction from the 
     requirements of section 4815.

     SEC. 4817. AFFILIATE TRANSACTION.

       Nothing in this subtitle shall preclude the Commission or a 
     State commission from exercising its jurisdiction under 
     otherwise applicable law to determine whether a public 
     utility company, public utility, or natural gas company may 
     recover in rates any costs of an activity performed by an 
     associate company, or any costs of goods or services acquired 
     by such public utility company from an associate company.

     SEC. 4818. APPLICABILITY.

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

     SEC. 4819. EFFECT ON OTHER REGULATIONS.

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

     SEC. 4820. ENFORCEMENT.

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

     SEC. 4821. SAVINGS PROVISIONS.

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

     SEC. 4822. IMPLEMENTATION.

       Not later than 180 days after the date of enactment of this 
     subtitle, the Commission shall--
       (1) promulgate such regulations as may be necessary or 
     appropriate to implement this title (other than section 
     4815); and
       (2) submit to Congress detailed recommendations on 
     technical and conforming amendments to Federal law necessary 
     to carry out this subtitle and the amendments made by this 
     subtitle.

     SEC. 4823. TRANSFER OF RESOURCES.

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

     SEC. 4824. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 4825. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

       Section 318 of the Federal Power Act (16 U.S.C. 825q) is 
     repealed.

 Subtitle D--Emission-Free Control Measures Under State Implementation 
                                 Plans

     SEC. 4830. EMISSION-FREE CONTROL MEASURES UNDER A STATE 
                   IMPLEMENTATION PLAN.

       Actions taken by a State to support the continued operation 
     of existing emission-free electricity sources, or the 
     construction or operation of new emission-free electricity 
     sources, shall be considered control measures necessary or 
     appropriate to meet applicable requirements under section 
     110(a) of the Clean Air Act (42 U.S.C. 7410(a)) and shall be 
     included in a State Implementation Plan.

    TITLE IX--TAX INCENTIVES FOR ENERGY PRODUCTION AND CONSERVATION

     SEC. 4901. SENSE OF CONGRESS REGARDING TAX INCENTIVES FOR 
                   ENERGY PRODUCTION AND CONSERVATION.

       It is the sense of Congress that certain Federal tax 
     incentives including those contained in title IX of S. 389 as 
     introduced in the First Session of the 107th Congress should 
     be enacted into law to encourage energy production and 
     conservation in the United States.
                                  ____

  SA 1598. Mr. LEVIN (for himself and Mr. Warner) proposes an amendment 
to the bill S. 1438, to authorize appropriations for fiscal year 2002 
for military activities of the Department of

[[Page 17575]]

Defense, for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; as follows:

       At the appropriate place in the bill, add the following:

     SEC.   . AUTHORIZATION OF ADDITIONAL FUNDS.

       (a) Authorization.--$1,300,000,000 is hereby authorized, in 
     addition to the funds authorized elsewhere in Division A of 
     this Act, for whichever of the following purposes the 
     President determines to be in the national security interests 
     of the United States--
       (1) research, development, test and evaluation for 
     ballistic missile defense; and
       (2) activities for combating terrorism.
                                  ____

  SA 1599. Mr. LOTT submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC.   . FISCAL YEAR 2003 BUDGET REQUEST FOR THE NAVY FOR 
                   SHIPBUILDING AND CONVERSION.

       Notwithstanding any other provision of law, the budget for 
     fiscal year 2003 that is submitted to Congress by the 
     President under section 1105(a) of title 31, United States 
     Code, may set forth the amounts for the Navy for fiscal year 
     2003 for shipbuilding and conversion on an advance 
     appropriations basis for all naval vessels.
                                  ____

  SA 1600. Mr. LOTT (for himself, Mr. Hutchinson, Mr. Cochran, and Mr. 
Stevens) submitted an amendment intended to be proposed by him to the 
bill S. 1438, to authorize appropriations for fiscal year 2002 for 
military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle A of title XXIX, add the following:

     SEC. __. MODIFICATION OF INSTALLATIONS SUBJECT TO CLOSURE OR 
                   REALIGNMENT IN 2003 BASE CLOSURE ROUND.

       The Defense Base Closure and Realignment Act of 1990 (part 
     A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
     is amended by inserting after section 2902 the following new 
     section:

     ``SEC. 2902A. INSTALLATIONS SUBJECT TO CLOSURE OR REALIGNMENT 
                   IN 2003 BASE CLOSURE ROUND.

       ``(a) In General.--Notwithstanding any other provision of 
     this part, the only installations subject to closure or 
     realignment under this part as a result of activities under 
     this part in 2003 are the following:
       ``(1) Military installations located outside the United 
     States (as that term is defined in section 2910(7)).
       ``(2) Notwithstanding section 2910(7), military 
     installations located in the Commonwealth of Puerto Rico, 
     Guam, the Virgin Islands, American Samoa, and any other 
     possession or territory of the United States.
       ``(3) Research, development, test, and evaluation 
     facilities, whether located in the United States or outside 
     the United States.
       ``(b) Reference.--For purposes of any activities under this 
     part in 2003, and activities under this part thereafter as a 
     result of the approval of the closure or realignment of 
     military installations under this part in 2003, any reference 
     to military installations in the United States shall be 
     deemed to be a reference to military installations referred 
     to in subsection (a).''.
                                  ____

  SA 1601. Mr. LOTT (for himself. Mr. Bunning, Mr. Hutchinson, Mr. 
Cochran, Mr. Stevens, and Mrs. Hutchison) submitted an amendment 
intended to be proposed by him to the bill S. 1438, to authorize 
appropriations for fiscal year 2002 for military activities of the 
Department of Defense, for military constructions, and for defense 
activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Forces, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike title XXIX, relating to defense base closure and 
     realignment.
                                  ____

  SA 1602. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       Strike section 572 and insert the following:

     SEC. 572. STANDARD FOR INVALIDATION OF BALLOTS CAST BY ABSENT 
                   UNIFORMED SERVICES VOTERS IN FEDERAL ELECTIONS.

       (a) In General.--Section 102 of the Uniformed and Overseas 
     Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is 
     amended--
       (1) by striking ``Each State'' and inserting ``(a) In 
     General.--Each State''; and
       (2) by adding at the end the following:
       ``(c) Standards for Invalidation of Certain Ballots.--
       ``(1) In general.--A State may not refuse to count a ballot 
     submitted in an election for Federal office by an absent 
     uniformed services voter on the grounds that the ballot was 
     improperly or fraudulently cast unless the State finds clear 
     and convincing evidence of fraud in the preparation or 
     casting of the ballot by the voter.
       ``(2) Clear and convincing evidence.--For purposes of this 
     subsection, the lack of a witness signature, address, 
     postmark, or other identifying information may not be 
     considered clear and convincing evidence of fraud (absent any 
     other information or evidence).
       ``(3) No effect on filing deadlines under state law.--
     Nothing in this subsection may be construed to affect the 
     application to ballots submitted by absent uniformed services 
     voters of any ballot submission deadline applicable under 
     State law.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to ballots described in section 
     102(c) of the Uniformed and Overseas Citizens Absentee Voting 
     Act (as added by such subsection) that are submitted with 
     respect to elections that occur after the date of enactment 
     of this Act.
       In section 577(a), strike ``shall carry out'' and insert 
     ``may carry out''.
       In section 577(b), strike ``the demonstration project'' and 
     insert ``any demonstration project''.
       In section 577(c), strike ``the demonstration project'' and 
     insert ``any demonstration project''.
       At the end of subtitle F of title V, add the following:

     SEC. 578. USE OF BUILDINGS ON MILITARY INSTALLATIONS AND 
                   RESERVE COMPONENT FACILITIES AS POLLING PLACES.

       (a) Use of Military Installations Authorized.--Section 2670 
     of title 10, United States Code, is amended--
       (1) by striking ``Under'' and inserting ``(a) Use by Red 
     Cross.--Under'';
       (2) by striking ``this section'' and inserting ``this 
     subsection''; and
       (3) by adding at the end the following:
       ``(b) Use as Polling Places.--(1) Notwithstanding chapter 
     29 of title 18 (including sections 592 and 593 of such 
     title), the Secretary of a military department may make a 
     building located on a military installation under the 
     jurisdiction of the Secretary available for use as a polling 
     place in any Federal, State, or local election for public 
     office.
       ``(2) Once a military installation is made available as the 
     site of a polling place with respect to a Federal, State, or 
     local election for public office, the Secretary shall 
     continue to make the site available for subsequent elections 
     for public office unless the Secretary provides to Congress 
     advance notice in a reasonable and timely manner of the 
     reasons why the site will no longer be made available as a 
     polling place.
       ``(3) In this section, the term `military installation' has 
     the meaning given the term in section 2687(e) of this 
     title.''.
       (b) Use of Reserve Component Facilities.--(1) Section 18235 
     of title 10, United States Code, is amended by adding at the 
     end the following new subsection:
       ``(c) Pursuant to a lease or other agreement under 
     subsection (a)(2), the Secretary may make a facility covered 
     by subsection (a) available for use as a polling place in any 
     Federal, State, or local election for public office 
     notwithstanding chapter 29 of title 18 (including sections 
     592 and 593 of such title). Once a facility is made available 
     as the site of a polling place with respect to an election 
     for public office, the Secretary shall continue to make the 
     facility available for subsequent elections for public office 
     unless the Secretary provides to Congress advance notice in a 
     reasonable and timely manner of the reasons why the facility 
     will no longer be made available as a polling place.''.
       (2) Section 18236 of such title is amended by adding at the 
     end the following:
       ``(e) Pursuant to a lease or other agreement under 
     subsection (c)(1), a State may make a facility covered by 
     subsection (c) available for use as a polling place in any 
     Federal, State, or local election for public office 
     notwithstanding chapter 29 of title 18 (including sections 
     592 and 593 of such title).''.
       (c) Conforming Amendments to title 18.--(1) Section 592 of 
     title 18, United States Code, is amended by adding at the end 
     the following:
       ``This section shall not prohibit the use of buildings 
     located on military installations,

[[Page 17576]]

     or the use of reserve component facilities, as polling places 
     in Federal, State, and local elections for public office in 
     accordance with section 2670(b), 18235, or 18236 of title 
     10.''.
       (2) Section 593 of such title is amended by adding at the 
     end the following:
       ``This section shall not prohibit the use of buildings 
     located on military installations, or the use of reserve 
     component facilities, as polling places in Federal, State, 
     and local elections for public office in accordance with 
     section 2670(b), 18235, or 18236 of title 10.''.
       (d) Conforming Amendment to Voting Rights Law.--Section 
     2003 of the Revised Statutes (42 U.S.C. 1972) is amended by 
     adding at the end the following: ``Making a military 
     installation or reserve component facility available as a 
     polling place in a Federal, State, or local election for 
     public office in accordance with section 2670(b), 18235, or 
     18236 of title 10, United States Code, shall be deemed to be 
     consistent with this section.''.
       (e) Clerical amendments.--(1) The heading of section 2670 
     of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 2670. Buildings on military installations: use by 
       American National Red Cross and as polling places in 
       Federal, State, and local elections''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 159 of such title is 
     amended to read as follows:

``2670. Buildings on military installations: use by American National 
              Red Cross and as polling places in Federal, State, and 
              local elections.''.

     SEC. 579. MAXIMIZATION OF ACCESS OF RECENTLY SEPARATED 
                   UNIFORMED SERVICES VOTERS TO THE POLLS.

       (a) In General.--For purposes of voting in any primary, 
     special, general, or runoff election for Federal office (as 
     defined in section 301 of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 431)), each State shall, with respect to 
     any recently separated uniformed services voter requesting to 
     vote in the State--
       (1) deem the voter to be a resident of the State;
       (2) waive any requirement relating to any period of 
     residence or domicile in the State for purposes of 
     registering to vote or voting in that State;
       (3) accept and process, with respect to any primary, 
     special, general, or runoff election, any otherwise valid 
     voter registration application from the voter on the day of 
     the election; and
       (4) permit the voter to vote in that election.
       (b) Definitions.--In this section:
       (1) The term ``State'' means a State of the United States, 
     the District of Columbia, the Commonwealth of Puerto Rico, or 
     a territory or possession of the United States.
       (2) The term ``recently separated uniformed services 
     voter'' means any individual that was a uniformed services 
     voter (as defined in subsection (f)(1)(D)) on the date that 
     is 60 days before the date on which the individual seeks to 
     vote and who--
       (A) presents to the election official Department of Defense 
     form 214 evidencing their former status as such a voter, or 
     any other official proof of such status;
       (B) is no longer such a voter; and
       (C) is otherwise qualified to vote.

     SEC. 580. GOVERNORS' REPORTS ON IMPLEMENTATION OF FEDERAL 
                   VOTING ASSISTANCE PROGRAM RECOMMENDATIONS.

       (a) Reports.--Not later than 90 days after the date on 
     which a State receives a legislative recommendation, the 
     State shall submit a report on the status of the 
     implementation of that recommendation to the Presidential 
     designee and to each Member of Congress that represents that 
     State.
       (b) Period of Applicability.--This section applies with 
     respect to legislative recommendations received by States 
     during the period beginning on the date of enactment of this 
     Act and ending three years after such date.
       (c) Definitions.--In this section:
       (1) The term ``legislative recommendation'' means a 
     recommendation of the Presidential designee suggesting a 
     modification in the laws of a State for the purpose of 
     maximizing the access to the polls of absent uniformed 
     services voters and overseas voters, including each 
     recommendation made under section 104 of the Uniformed and 
     Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff-3).
       (2) The term ``Presidential designee'' means the head of 
     the executive department designated under section 101 of the 
     Uniformed and Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff).
                                  ____

  SA 1603. Mr. LOTT (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed by him to the bill S. 1438, to 
authorize appropriations for fiscal year 2002 for military activities 
of the Department of Defense, for military constructions, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Forces, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 303 and insert the following:

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       (a) Amount for Fiscal Year 2002.--There is hereby 
     authorized to be appropriated for fiscal year 2002 from the 
     Armed Forces Retirement Home Trust Fund the sum of 
     $71,440,000 for the operation of the Armed Forces Retirement 
     Home, including the United States Soldiers' and Airmen's Home 
     and the Naval Home.
       (b) Amounts Previously Authorized.--Of amounts authorized 
     to be appropriated from the Armed Forces Retirement Home 
     Trust Fund for fiscal years before fiscal year 2002 by Acts 
     enacted before the date of the enactment of this Act, amounts 
     shall be available for those fiscal years, to the same extent 
     as is provided in appropriation Acts, for the development and 
     construction of a blended use, multicare facility at the 
     Naval Home and for the acquisition of a parcel of real 
     property adjacent to the Naval Home, consisting of 
     approximately 15 acres, more or less.
                                  ____

  SA 1604. Mr. LOTT (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed by him to the bill S. 1438, to 
authorize appropriations for fiscal year 2002 for military activities 
of the Department of Defense, for military constructions, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Forces, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 346, line 20, insert after ``professional'' the 
     following: ``or a member of the Armed Forces serving on 
     active duty in a grade above major or lieutenant commander''.
                                  ____

  SA 1605. Mr. Torricelli (for himself, Mr. Carper, and Mr. Corzine) 
submitted an amendment intended to be proposed by him to the bill S. 
1438, to authorize appropriations for fiscal year 2002 for military 
activities of the Department of Defense, for military constructions, 
and for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 49, between lines 2 and 3, insert the following:

     SEC. 233. LIMITATIONS ON PROCUREMENT OF AMMUNITION AND 
                   AMMUNITION PROPELLANT

       (a) Procurement Through Manufacturers in National 
     Technology and Industrial Base.--Subsection (a) of section 
     2534 of title 10, United States Code, is amended by adding at 
     the end of the following new paragraph:
       ``(6) Ammunition and ammunition propellant.--Conventional 
     ammunition and ammunition propellant used therein.''.
       (b) Additional Requirements for Procurement.--Such section 
     is further amended by adding at the end the following new 
     subsection:
       ``(j) Additional Requirements for Procurement of Ammunition 
     and Ammunition Propellant.--(1) In addition to the 
     requirement under subsection (a)(6), the Secretary of Defense 
     shall procure ammunition or ammunition propellant only from 
     manufacturers, whether privately owned or governmentally-
     owned, meeting the requirements of paragraph (2).
       ``(2) A manufacturer of ammunition or ammunition propellant 
     meets the requirements of this paragraph if the manufacturer 
     warrants that any subcontractor which furnishes smokeless 
     nitrocellulose to the manufacturer--
       ``(A) is a part of the national technology and industrial 
     base; and
       ``(B) was selected to furnish smokeless nitrocellulose 
     through a competition meeting the requirements of paragraph 
     (3).
       ``(3) The competition of a manufacturer for the furnishing 
     of smokeless nitrocellulose under paragraph (2)(B) shall--
       ``(A) be open to all other manufacturers of smokeless 
     nitrocellulose in the national technology and industrial base 
     that manufacture the type of smokeless nitrocellulose that is 
     technically appropriate for use in the product to be made by 
     the manufacturer; and
       ``(B) provide that the winner of the competition may not 
     furnish to the manufacturer an amount of smokeless 
     nitrocellulose in excess of 1.5 times the aggregate amount of 
     smokeless nitrocellulose to be furnished to the manufacturer 
     by all other participants in the competition.
       ``(4) This subsection sets forth procurement procedures 
     expressly authorized by statute within the meaning of section 
     2304(a)(1) of this title.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2001, and shall apply with 
     respect to the procurement of ammunition and ammunition 
     propellant by the Secretary of Defense on or after that date.
                                  ____

  SA 1606. Mr. ALLARD (for himself, and Mr. Smith of New Hamphsire) 
submitted an amendment intended to be

[[Page 17577]]

proposed by him to the bill S. 1438, to authorize appropriations for 
fiscal year 2002 for military activities of the Department of Defense, 
for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of title IX, add the following:

      Subtitle B--Organization and Management of Space Activities

     SEC 911. ESTABLISHMENT OF POSITION OF UNDER SECRETARY OF 
                   DEFENSE FOR SPACE, INTELLIGENCE, AND 
                   INFORMATION.

       (a) Authority of Secretary of Defense To Establish 
     Position.--Upon the direction of the President, the Secretary 
     of Defense may, subject to subsection (b), establish in the 
     Office of the Secretary of Defense the position of Under 
     Secretary of Defense for Space, Intelligence, and 
     Information. If the position is so established, the Under 
     Secretary of Defense for Space, Intelligence, and Information 
     shall perform duties and exercise powers as set forth under 
     section 137 of title 10, United States Code, as amended by 
     subsection (d).
       (b) Deadline for Exercise of Authority.--The Secretary may 
     not exercise the authority in subsection (a) after December 
     31, 2003.
       (c) Notice of Exercise of Authority.--If the authority in 
     subsection (a) is exercised, the Secretary shall immediately 
     notify Congress of the establishment of the position of Under 
     Secretary of Defense for Space, Intelligence, and 
     Information, together with the date on which the position is 
     established.
       (d) Nature of Position.--
       (1) In general.--Effective as of the date provided for in 
     paragraph (7), chapter 4 of title 10, United States Code, is 
     amended--
       (A) by redesignating section 137 as section 139a and by 
     transferring such section (as so redesignated) within such 
     chapter so as to appear after section 139; and
       (B) by inserting after section 136 the following new 
     section 137:

     ``Sec. 137. Under Secretary of Defense for Space, 
       Intelligence, and Information

       ``(a) There is an Under Secretary of Defense for Space, 
     Intelligence, and Information, appointed from civilian life 
     by the President, by and with the advice and consent of the 
     Senate.
       ``(b) Subject to the authority, direction, and control of 
     the Secretary of Defense, the Under Secretary of Defense for 
     Space, Intelligence, and Information shall perform such 
     duties and exercise such powers relating to the space, 
     intelligence, and information programs and activities of the 
     Department of Defense as the Secretary of Defense may 
     prescribe. The duties and powers prescribed for the Under 
     Secretary shall include the following:
       ``(1) In coordination with the Under Secretary of Defense 
     for Policy, the establishment of policy on space.
       ``(2) In coordination with the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics, the acquisition 
     of space systems.
       ``(3) The deployment and use of space assets.
       ``(4) The oversight of research, development, acquisition, 
     launch, and operation of space, intelligence, and information 
     assets.
       ``(5) The coordination of military intelligence activities 
     within the Department.
       ``(6) The coordination of intelligence activities of the 
     Department and the intelligence community in order to meet 
     the long-term intelligence requirements of the United States.
       ``(7) The coordination of space activities of the 
     Department with commercial and civilian space activities.
       ``(c) The Secretary of Defense shall designate the Under 
     Secretary of Defense for Space, Intelligence, and Information 
     as the Chief Information Officer of the Department of Defense 
     under section 3506(a)(2)(B) of title 44.
       ``(d) The Under Secretary of Defense for Space, 
     Intelligence, and Information takes precedence in the 
     Department of Defense after the Under Secretary of Defense 
     for Personnel and Readiness.''.
       (2) Additional assistant secretary of defense.--Section 
     138(a) of that title is amended by striking ``nine Assistant 
     Secretaries of Defense'' and inserting ``ten Assistant 
     Secretaries of Defense''.
       (3) Duties of assistant secretaries of defense for space, 
     intelligence, and information.--Section 138(b) of that title 
     is amended by adding at the end the following new paragraph:
       ``(7) Two of the Assistant Secretaries shall have as their 
     principal duties supervision of activities relating to space, 
     intelligence, and information. The Assistant Secretaries 
     shall each report to the Under Secretary of Defense for 
     Space, Intelligence, and Information in the performance of 
     such duties.''.
       (4) Conforming amendments.--Section 131(b) of that title is 
     amended--
       (A) by redesignating paragraphs (6) through (11) as 
     paragraphs (7) through (12), respectively; and
       (B) by inserting after paragraph (5) the following new 
     paragraph (6):
       ``(6) The Under Secretary of Defense for Space, 
     Intelligence, and Information.''.
       (5) Pay levels.--(A) Section 5314 of title 5, United States 
     Code, is amended by inserting after ``Under Secretary of 
     Defense for Personnel and Readiness'' the following:
       ``Under Secretary of Defense for Space, Intelligence, and 
     Information.''.
       (B) Section 5315 of title 5, United States Code, is amended 
     in the item relating to Assistant Secretaries of Defense by 
     striking ``(9)'' and inserting ``(10)''.
       (6) Clerical amendments.--The table of sections at the 
     beginning of chapter 4 of title 10, United States Code, is 
     amended--
       (A) by striking the item relating to section 137 and 
     inserting the following new item:

``137. Under Secretary of Defense for Space, Intelligence, and 
              Information.''; and
       (B) by inserting after the item relating to section 139 the 
     following new item:

``139a. Director of Defense Research and Engineering.''.
       (7) Effective date.--The amendments made by this subsection 
     shall take effect as of the date specified in the 
     notification provided by the Secretary of Defense to Congress 
     under subsection (c) of the exercise of the authority in 
     subsection (a).
       (e) Report.--(1) Not later than 30 days before an exercise 
     of the authority provided in subsection (a), the President 
     shall submit to Congress a report on the proposed 
     organization of the office of the Under Secretary of Defense 
     for Space, Intelligence, and Information.
       (2) If the Secretary of Defense has not exercised the 
     authority granted in subsection (a) on the date that is one 
     year after the date of the enactment of this Act, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives on that date a 
     report describing the actions taken by the Secretary to 
     address the problems in the management and organization of 
     the Department of Defense for space activities that are 
     identified by the Commission To Assess United States National 
     Security Space Management and Organization in the report of 
     the Commission submitted under section 1623 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 815).

     SEC. 912. RESPONSIBILITY FOR SPACE PROGRAMS.

       (a) In General.--Part IV of subtitle A of title 10, United 
     States Code, is amended by inserting after chapter 134 the 
     following new chapter:

                     ``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Responsibility for space programs.

     ``Sec. 2271. Responsibility for space programs

       ``(a) Responsibility of Secretary of Air Force as Executive 
     Agent.--The Secretary of the Air Force shall be the executive 
     agent of the Department of Defense for functions of the 
     Department designated by the Secretary of Defense with 
     respect to the following:
       ``(1) Planning for the acquisition programs, projects, and 
     activities of the Department that relate to space.
       ``(2) Efficient execution of the programs, projects, and 
     activities.
       ``(b) Responsibility of Under Secretary of Air Force as 
     Acquisition Executive.--The Under Secretary of the Air Force 
     shall be the acquisition executive of the Department of the 
     Air Force for the programs, projects, and activities referred 
     to in subsection (a).
       ``(c) Responsibility of Under Secretary of Air Force as 
     Director of NRO.--The Under Secretary of the Air Force shall 
     act as the Director of the National Reconnaissance Office.
       ``(d) Coordination of Duties of Under Secretary of Air 
     Force.--In carrying out duties under subsections (b) and (c), 
     the Under Secretary of the Air Force shall coordinate the 
     space programs, projects, and activities of the Department of 
     Defense and the programs, projects, and activities of the 
     National Reconnaissance Office.
       ``(e) Space Career Field.--(1) The Under Secretary of the 
     Air Force shall establish and implement policies and 
     procedures to develop a cadre of technically competent 
     officers with the capability to develop space doctrine, 
     concepts of space operations, and space systems for the 
     Department of the Air Force.
       ``(2) The Secretary of the Air Force shall assign to the 
     commander of Air Force Space Command primary responsibility 
     for--
       ``(A) establishing and implementing education and training 
     programs for space programs, projects, and activities of the 
     Department of the Air Force; and
       ``(B) management of the space career field under paragraph 
     (1).
       ``(f) Joint Program Management.--The Under Secretary of the 
     Air Force shall take appropriate actions to ensure that, to 
     maximum extent practicable, Army, Navy, Marine Corps, and Air 
     Force personnel are assigned, on a joint duty assignment 
     basis, as follows:
       ``(1) To carry out the space development and acquisition 
     programs of the Department of Defense; and
       ``(2) To the Office of the National Security Space 
     Architect.''.

[[Page 17578]]

       (b) Clerical Amendment.--The tables of chapters at the 
     beginning of such subtitle and at the beginning of part IV of 
     such subtitle are amended by inserting after the item 
     relating to chapter 134 the following new item:

``135. Space Programs.......................................2271''.....

     SEC. 913. MAJOR FORCE PROGRAM CATEGORY FOR SPACE PROGRAMS.

       (a) Requirement.--The Secretary of Defense shall create a 
     major force program category for space programs for purposes 
     of the future-years defense program under section 221 of 
     title 10, United States Code.
       (b) Commencement.--The category created under subsection 
     (a) shall be included in each future-years defense program 
     submitted to Congress under section 221 of title 10, United 
     States Code, in fiscal years after fiscal year 2002.

     SEC. 914. ASSESSMENT OF IMPLEMENTATION OF RECOMMENDATIONS OF 
                   COMMISSION TO ASSESS UNITED STATES NATIONAL 
                   SECURITY SPACE MANAGEMENT AND ORGANIZATION.

       (a) Comptroller General Assessment.--The Comptroller 
     General shall carry out an assessment of the progress made by 
     the Department of Defense in implementing the recommendations 
     of the Commission To Assess United States National Security 
     Space Management and Organization as contained in the report 
     of the Commission submitted under section 1623 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 815).
       (b) Reports.--Not later than February 15 of each of 2002 
     and 2003, the Comptroller General shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on the assessment carried out under 
     subsection (a). Each report shall set forth the results of 
     the assessment as of the date of such report.

     SEC. 915. GRADE OF COMMANDER OF AIR FORCE SPACE COMMAND.

       (a) In General.--Chapter 845 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 8584. Commander of Air Force Space Command

       ``(a) Grade.--The officer serving as commander of the Air 
     Force Space Command shall, while so serving, have the grade 
     of general.
       ``(b) Limitation on Concurrent Command Assignments.--The 
     officer serving as commander of the Air Force Space Command 
     may not, while so serving, serve as commander-in-chief of the 
     United States Space Command (or any successor combatant 
     command with responsibility for space) or as commander of the 
     United States element of the North American Air Defense 
     Command.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``8584. Commander of Air Force Space Command.''.

     SEC. 916. SENSE OF CONGRESS REGARDING GRADE OF OFFICER 
                   ASSIGNED AS COMMANDER OF UNITED STATES SPACE 
                   COMMAND.

       It is the sense of Congress that the Secretary of Defense 
     should assign the best qualified officer of the Army, Marine 
     Corps, or Air Force with the grade of general, or of the Navy 
     with the grade of admiral, to the position of Commander of 
     the United States Space Command.
                                  ____

  SA 1607. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed by him to the bill S. 1438, to 
authorize appropriations for fiscal year 2002 for military activities 
of the Department of Defense, for military constructions, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Forces, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle B of title II, add the following:

     SEC.   . BIG CROW PROGRAM AND DEFENSE SYSTEMS EVALUATION 
                   PROGRAM.

       (a) Increase in Authorization of Appropriations for 
     Research, Development, Test, and Evaluation, Defense-Wide.--
     The amount authorized to be appropriated by section 201(4) 
     for research, development, test, and evaluation, Defense-
     wide, is hereby increased by $15,100,000, with the amount of 
     the increase to be available for operational test and 
     evaluation (PE605118D).
       (b) Availability of Funds.--Of the amount authorized to be 
     appropriated by section 201(4), as increased by subsection 
     (a)--
       (1) $12,000,000 shall be available for the Big Crow 
     program; and
       (2) $3,100,000 shall be available for the Defense Systems 
     Evaluation (DSE) program.
       (c) Offset.--The amount authorized to be appropriated by 
     this division, other than the amount authorized to be 
     appropriated by subsection (a), is hereby reduced by 
     $15,100,000, which represents savings resulting from 
     adjustments to foreign currency exchange rates.
                                  ____

  SA 1608. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1438, to authorize appropriations for 
fiscal year 2002 for military activities of the Department of Defense, 
for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of subtitle A of title III, add the following:

     SEC. 306. CLARA BARTON CENTER FOR DOMESTIC PREPAREDNESS, 
                   ARKANSAS.

       (a) Increase in Authorization of Appropriations for 
     Operation and Maintenance, Defense-Wide.--The amount 
     authorized to be appropriated by section 301(5) for operation 
     and maintenance for Defense-wide activities is hereby 
     increased by $1,800,000.
       (b) Availability of Funds.--(1) Of the amount authorized to 
     be appropriated by section 301(5) for operation and 
     maintenance for Defense-wide activities, as increased by 
     subsection (a), $1,800,000 shall be available for the Clara 
     Barton Center for Domestic Preparedness, Arkansas.
       (2) The amount made available by paragraph (1) for the 
     Clara Barton Center for Domestic Preparedness is in addition 
     to any other amounts made available by this Act for the Clara 
     Barton Center for Domestic Preparedness.
                                  ____

  SA 1609. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1438, to authorize appropriations for 
fiscal year 2002 for military activities of the Department of Defense, 
for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of subtitle D of title III, add the following:

     SEC. 335. PILOT PROGRAM FOR EFFICIENT INVENTORY MANAGEMENT 
                   SYSTEM FOR THE DEPARTMENT OF DEFENSE.

       (a) Pilot Program.--(1) The Secretary of Defense shall, 
     using amounts available under subsection (c), carry out a 
     pilot program for the development and operation of an 
     efficient inventory management system for the Department of 
     Defense. The pilot program shall be designed to address the 
     problems in the inventory management system of the Department 
     that were identified by the Comptroller General of the United 
     States as a result of the General Accounting Office audit of 
     the inventory management system of the Department in 1997.
       (2) In entering into any contract for purposes of the pilot 
     program, the Secretary shall take into appropriate account 
     current Department contract goals for small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the pilot program under subsection (a). The 
     report shall describe the pilot program, assess the progress 
     of the pilot program, and contain such recommendations at the 
     Secretary considers appropriate regarding expansion or 
     extension of the pilot program.
       (c) Funding.--(1) The amount authorized to be appropriated 
     by section 301(5) for operation and maintenance for Defense-
     wide activities is hereby increased by $1,000,000.
       (2) Of the amount authorized to be appropriated by section 
     301(5) for operation and maintenance for Defense-wide 
     activities, as increased by paragraph (1), $1,000,000 shall 
     be available for the pilot program under subsection (a).
                                  ____

  SA 1610. Mr. SANTORUM submitted an amendment intented to be proposed 
by him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the end of subtitle D of title III, add the following:

  SEC. 335. FUNDING FOR LAND FORCES READINESS-INFORMATION OPERATIONS 
                              SUSTAINMENT.

       Of the amount authorized to be appropriated by section 
     301(6), $5,000,000 shall be available for land forces 
     readiness-information operations sustainment.
                                  ____

  SA 1611. Mr. SANTORUM submitted an amendment intended to be proposed 
by him to the bill S. 1438, to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, for military 
constructions,

[[Page 17579]]

and for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 22, line 22, increase the amount by $1,000,000.
       On page 22, line 21, reduce the amount by $1,000,000.
                                  ____

  SA 1612. Mrs. HUTCHISON submitted an amendment intended to be 
proposed by her to the bill S. 1438, to authorize appropriations for 
fiscal year 2002 for military activities of the Department of Defense, 
for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       Strike title XXIX and insert the following:

     TITLE XXIX--COMMISSION ON DEPARTMENT OF DEFENSE INFRASTRUCTURE

     SEC. 2901. COMMISSION ON THE DEPARTMENT OF DEFENSE 
                   INFRASTRUCTURE.

       (a) Establishment.--There is established a commission to be 
     known as the ``Commission on the Department of Defense 
     Infrastructure'' (in this section referred to as the 
     ``Commission'').
       (b) Membership.--(1) The Commission shall be composed of 13 
     members who shall be appointed, not later than 90 days after 
     the date of the enactment of this Act, as follows:
       (A) Seven members appointed by the President in 
     consultation with the Secretary of Defense, including at 
     least one member appointed from each of the Army, Navy, Air 
     Force, and Marine Corps.
       (B) Two members appointed by the Speaker of the House of 
     Representatives.
       (C) Two members appointed by the Majority Leader of the 
     Senate.
       (D) One member appointed by the Minority Leader of the 
     House of Representatives.
       (E) One member appointed by the Minority Leader of the 
     Senate.
       (2) Members shall be appointed for the life of the 
     Commission. Any vacancy in the Commission shall not affect 
     its powers, but shall be filled in the same manner as the 
     original appointment.
       (3) The President shall designate one member of the 
     Commission to serve as the Chairman.
       (4) The Commission shall meet at the call of the Chairman. 
     A majority of the members shall constitute a quorum, but a 
     lesser number may hold hearings for the Commission.
       (c) Duties.--The Commission--
       (1) shall evaluate the infrastructure of the Department of 
     Defense inside and outside the United States, including the 
     use of the infrastructure, in relationship to the 
     requirements of the Department of Defense;
       (2) shall develop a plan of actions that the Commission 
     recommends for rationalizing and maximizing the use of the 
     facilities of the Department of Defense and other elements of 
     the infrastructure;
       (3) if the Commission finds that the infrastructure is 
     excess to the requirements of the Department of Defense, 
     shall develop a recommended plan of actions for reducing the 
     excess, which may include closure or realignment of 
     installations and other facilities, basing of forces or 
     workforces in urban areas, privatization of the operation of 
     facilities, increasing the use of leasing, and any other 
     actions determined appropriate by the Commission; and
       (4) shall develop a recommended analytical process for 
     evaluating the infrastructure of the Department of Defense on 
     the basis of the factors described in subsection (d).
       (d) Considerations.--In evaluating infrastructure and 
     developing a plan or plans under subsection (c), the 
     Commission shall take into consideration the following 
     factors:
       (1) Present and future force structure and mission 
     requirements through 2020, consistent with the Joint Vision 
     2020 issued by the Joint Chiefs of Staff, including--
       (A) mobilization requirements; and
       (B) requirements for utilization of facilities by the 
     Department of Defense and other departments and agencies of 
     the United States, including--
       (i) joint use by two or more of the Armed Forces; and
       (ii) use by reserve components.
       (2) The availability and condition of facilities, land, and 
     associated airspace, including--
       (A) proximity to mobilization points, including points of 
     embarkation for air or rail transportation and ports;
       (B) current, planned, and programmed military construction.
       (3) Ranges and airspace factors, including--
       (A) uniqueness; and
       (B) existing or potential electromagnetic or other 
     encroachment.
       (4) Force protection.
       (5) Anticipated costs and effects of relocating critical 
     infrastructure in the case of a base closure or realignment, 
     including--
       (A) associated military construction costs at receiving 
     installations and facilities;
       (B) associated environmental costs, including costs of 
     compliance with Federal and State environmental laws;
       (C) termination costs and other liabilities relating to 
     existing contracts and transactions that involve outsourcing 
     or privatization of services, housing, or utilities used by 
     the Department of Defense;
       (D) impact on co-located organizations of the Department of 
     Defense;
       (E) impact on co-located Federal agencies; and
       (F) costs of civilian personnel transfers and relocations 
     and other workforce implications.
       (6) Community support of military presence, including--
       (A) opportunities for public and private partnerships in 
     support of Department of Defense activities; and
       (B) economic effects and other effects of base closures and 
     realignments on local communities.
       (7) Lessons learned from previous base closures and 
     realignments, including those regarding disparities between 
     anticipated savings and actual savings.
       (8) Anticipated savings and other benefits of realigning or 
     closing a base or facility, including--
       (A) any enhancement of capabilities to make better use of 
     remaining infrastructure; and
       (B) ability to relocate units and other assets.
       (9) Any other factors that the Commission considers 
     significant.
       (e) Report.--(1) Not later than 270 days after the date of 
     the enactment of this Act, the Commission shall submit a 
     report on its activities to the President and Congress.
       (2) The report shall include the following:
       (A) The Commission's findings and conclusions.
       (B) The plan or plans of recommended actions developed 
     under subsection (c).
       (C) The recommended analytical process developed under 
     subsection (c)(4).
       (f) Administrative Requirements and Authorities.--(1) The 
     Secretary of Defense shall ensure that the Commission is 
     provided such administrative services, facilities, staff, and 
     other support services as may be necessary to carry out its 
     duties.
       (2) The Commission may hold hearings, sit and act at times 
     and places, take testimony, and receive evidence that the 
     Commission considers necessary to carry out the purposes of 
     this Act.
       (3) The Commission may request directly from any department 
     or agency of the Federal Government any information that the 
     Commission considers necessary to carry out the provisions of 
     this section. To the extent consistent with applicable 
     requirements of law and regulation, the head of such 
     department or agency shall furnish such information to the 
     Commission.
       (4) The Commission may use the United States mails in the 
     same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       (g) Commission Personnel Matters.--(1) Members of the 
     Commission shall serve without additional compensation for 
     their service on the Commission, except that members 
     appointed from among private citizens may be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by law for persons serving intermittently in 
     government service under subchapter I of chapter 57 of title 
     5, United States Code, while away from their homes and places 
     of business in the performance of services for the 
     Commission.
       (2) The Chairman of the Commission may appoint staff, 
     request the detail of Federal employees, and accept temporary 
     or intermittent services in accordance with subchapter IV of 
     chapter 31 of title 5, United States Code.
       (h) Termination.--The Commission shall terminate 30 days 
     after the submission of the report under subsection (e).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Commission, $5,000,000, to remain 
     available until expended.
                                  ____

  SA 1613. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed by him to the bill S. 1438, to authorize appropriations 
for fiscal year 2002 for military activities of the Department of 
Defense, for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of subtitle A of title X, add the following:

     SEC. 1009. ADDITIONAL FUNDS FOR UNFUNDED PRIORITIES OF THE 
                   ARMED FORCES.

       (a) Increase in Amount Authorized for Armed Forces.--The 
     aggregate amount authorized to be appropriated by this 
     division is hereby increased by $1,778,000,000, with the 
     amount of such increase to be allocated in equal portions 
     among the Army, Navy, Marine Corps, and Air Force, and 
     available to meet the unfunded requirements of each Armed 
     Force in accordance with the priority list of such Armed 
     Force.

[[Page 17580]]

       (b) Decrease in Amount Authorized for Department of 
     Energy.--The aggregate amount authorized to be appropriated 
     by title XXXI is hereby reduced by $1,778,000,000.
                                  ____

  SA 1614. Mr. SMITH of New Hampshire submitted an amendment intended 
to be proposed by him to the bill S. 1438, to authorize appropriations 
for fiscal year 2002 for military activities of the Department of 
Defense, for military constructions, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. UNITED STATES-CHINA MILITARY-TO-MILITARY EXCHANGES.

       (a) Instruction in the Law of War and the Hague and Geneva 
     Conventions.--United States-China military-to-military 
     exchanges shall include instruction in the following for PLA 
     officers participating in the exchanges:
       (1) The principles, spirit, and intent of the 1907 Hague 
     and 1949 Geneva Conventions.
       (2) The law of war prohibiting unnecessary destruction.
       (3) The law of war requiring humane treatment of prisoners 
     of war (POWs), other captured and detained personnel, and 
     civilians.
       (4) The obligation not to commit war crimes.
       (5) The obligation to report all violators of the law of 
     war.
       (6) The significant provisions of the Geneva Convention 
     Relative to the Treatment of Prisoners of War, done on August 
     12, 1949.
       (7) Full exposure to the Uniform Code of Military Justice 
     (UCMJ) and the Soldier's Handbook.
       (b) Human Rights Violations by China.--None of the funds 
     made available by this Act for military-to-military exchanges 
     may be provided to any officers of the security forces of the 
     People's Republic of China if the Secretary of State has 
     credible evidence that such officers have committed gross 
     violations of human rights, unless the Secretary determines 
     and reports to the Committees on Armed Services and 
     Appropriations of the Senate and the House of Representatives 
     that the Government of the People's Republic of China is 
     taking effective measures to bring the responsible members of 
     the security forces to justice.
       (c) Human Rights Violations by Other Foreign Countries.--
     None of the funds made available by this Act may be used to 
     support any exchange program involving a unit of the security 
     forces of a foreign country if the Secretary of Defense has 
     received credible information from the Department of State 
     that a member of such unit has committed a gross violation of 
     human rights, unless all necessary corrective steps have been 
     taken.
       (d) Waiver.--The Secretary of Defense may waive the 
     provisions of this section if he determines that 
     extraordinary circumstances require it. Within 15 days of 
     issuing such a waiver, the Secretary shall submit a report to 
     the congressional defense committees describing the 
     extraordinary circumstances, the purpose and duration of the 
     exchange program, the United States forces involved in the 
     training program, and the information relating to human 
     rights violations that necessitates the waiver.
                                  ____

  SA 1615. Mr. REID (for Mr. Sarbanes (for himself and Mr. Gramm)) 
proposed an amendment to the bill H.R. 2510, to extend the expiration 
date of the Defense Production Act of 1950, and for other purposes; as 
follows:

       On page 2, strike lines 9 through 14 and insert the 
     following: ``2002''.

     ``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       ``Section 711(b) of the Defense Production Act of 1950 (50 
     U.S.C. App. 2161(b)) is amended by striking `2001' and 
     inserting `2002'.''
                                  ____

  SA 1616. Mr. REID (for Mr. Hollings (for himself and Mr. Gregg)) 
proposed an amendment to the bill H.R. 2500, making appropriations for 
the Departments of Commerce, Justice, and State, the Judiciary, and 
related agencies for the fiscal year ending September 30, 2002, and for 
other purposes; as follows:

       Strike section 404 of the Senate amendment.

                          ____________________