[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[Senate]
[Pages 23544-23591]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 2170. Mr. DASCHLE (for Mr. Hatch (for himself and Mr. Baucus)) 
proposed an amendment to the bill H.R. 10, to provide for pension 
reform, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Railroad 
     Retirement and Survivors' Improvement Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

         TITLE I--AMENDMENTS TO RAILROAD RETIREMENT ACT OF 1974

Sec. 101. Expansion of widow's and widower's benefits.
Sec. 102. Retirement age restoration.
Sec. 103. Vesting requirement.
Sec. 104. Repeal of railroad retirement maximum.
Sec. 105. Investment of railroad retirement assets.
Sec. 106. Elimination of supplemental annuity account.
Sec. 107. Transfer authority revisions.
Sec. 108. Annual ratio projections and certifications by the Railroad 
              Retirement Board.

       TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 201. Amendments to the Internal Revenue Code of 1986.
Sec. 202. Exemption from tax for National Railroad Retirement 
              Investment Trust.
Sec. 203. Repeal of supplemental annuity tax.
Sec. 204. Employer, employee representative, and employee tier 2 tax 
              rate adjustments.

         TITLE I--AMENDMENTS TO RAILROAD RETIREMENT ACT OF 1974

     SEC. 101. EXPANSION OF WIDOW'S AND WIDOWER'S BENEFITS.

       (a) In General.--Section 4(g) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231c(g)) is amended by adding at the 
     end the following new subdivision:
       ``(10)(i) If for any month the unreduced annuity provided 
     under this section for a widow or widower is less than the 
     widow's or widower's initial minimum amount computed pursuant 
     to paragraph (ii) of this subdivision, the unreduced annuity 
     shall be increased to that initial minimum amount. For the 
     purposes of this subdivision, the unreduced annuity is the 
     annuity without regard to any deduction on account of work, 
     without regard to any reduction for entitlement to an annuity 
     under section 2(a)(1) of this Act, without regard to any 
     reduction for entitlement to a benefit under title II of the 
     Social Security Act, and without regard to any reduction for 
     entitlement to a public service pension pursuant to section 
     202(e)(7), 202(f)(2), or 202(g)(4) of the Social Security 
     Act.
       ``(ii) For the purposes of this subdivision, the widow or 
     widower's initial minimum amount is the amount of the 
     unreduced annuity computed at the time an annuity is awarded 
     to that widow or widower, except that--
       ``(A) in subsection (g)(1)(i) `100 per centum' shall be 
     substituted for `50 per centum'; and
       ``(B) in subsection (g)(2)(ii) `130 per centum' shall be 
     substituted for `80 per centum' both places it appears.
       ``(iii) If a widow or widower who was previously entitled 
     to a widow's or widower's annuity under section 2(d)(1)(ii) 
     of this Act becomes entitled to a widow's or widower's 
     annuity under section 2(d)(1)(i) of this Act, a new initial 
     minimum amount shall be computed at the time of award of the 
     widow's or widower's annuity under section 2(d)(1)(i) of this 
     Act.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     take effect on the first day of the first month that begins 
     more than 30 days after enactment, and shall apply to annuity 
     amounts accruing for months after the

[[Page 23545]]

     effective date in the case of annuities awarded--
       (A) on or after that date; and
       (B) before that date, but only if the annuity amount under 
     section 4(g) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231c(g)) was computed under such section, as amended 
     by the Omnibus Budget Reconciliation Act of 1981 (Public Law 
     97-35; 95 Stat. 357).
       (2) Special rule for annuities awarded before the effective 
     date.--In applying the amendment made by this section to 
     annuities awarded before the effective date, the calculation 
     of the initial minimum amount under new section 4(g)(10)(ii) 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231c(g)(10)(ii)), as added by subsection (a), shall be made 
     as of the date of the award of the widow's or widower's 
     annuity.

     SEC. 102. RETIREMENT AGE RESTORATION.

       (a) Employee Annuities.--Section 3(a)(2) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231b(a)(2)) is amended by 
     inserting after ``(2)'' the following new sentence: ``For 
     purposes of this subsection, individuals entitled to an 
     annuity under section 2(a)(1)(ii) of this Act shall, except 
     for the purposes of recomputations in accordance with section 
     215(f) of the Social Security Act, be deemed to have attained 
     retirement age (as defined by section 216(l) of the Social 
     Security Act).''.
       (b) Spouse and Survivor Annuities.--Section 4(a)(2) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231c(a)(2)) is 
     amended by striking ``if an'' and all that follows through 
     ``section 2(c)(1) of this Act'' and inserting ``a spouse 
     entitled to an annuity under section 2(c)(1)(ii)(B) of this 
     Act''.
       (c) Conforming Repeals.--Sections 3(a)(3), 4(a)(3), and 
     4(a)(4) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231b(a)(3), 231c(a)(3), and 231c(a)(4)) are repealed.
       (d) Effective Dates.--
       (1) Generally.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to annuities that 
     begin to accrue on or after January 1, 2002.
       (2) Exception.--The amount of the annuity provided for a 
     spouse under section 4(a) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231c(a)) shall be computed under section 
     4(a)(3) of such Act, as in effect on December 31, 2001, if 
     the annuity amount provided under section 3(a) of such Act 
     (45 U.S.C. 231b(a)) for the individual on whose employment 
     record the spouse annuity is based was computed under section 
     3(a)(3) of such Act, as in effect on December 31, 2001.

     SEC. 103. VESTING REQUIREMENT.

       (a) Certain Annuities for Individuals.--Section 2(a) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231a(a)) is 
     amended--
       (1) by inserting in subdivision (1) ``(or, for purposes of 
     paragraphs (i), (iii), and (v), five years of service, all of 
     which accrues after December 31, 1995)'' after ``ten years of 
     service''; and
       (2) by adding at the end the following new subdivision:
       ``(4) An individual who is entitled to an annuity under 
     paragraph (v) of subdivision (1), but who does not have at 
     least ten years of service, shall, prior to the month in 
     which the individual attains age 62, be entitled only to an 
     annuity amount computed under section 3(a) of this Act 
     (without regard to section 3(a)(2) of this Act) or section 
     3(f)(3) of this Act. Upon attainment of age 62, such an 
     individual may also be entitled to an annuity amount computed 
     under section 3(b), but such annuity amount shall be reduced 
     for early retirement in the same manner as if the individual 
     were entitled to an annuity under section 2(a)(1)(iii).''.
       (b) Computation Rule for Individuals' Annuities.--Section 
     3(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231b(a)), as amended by section 102 of this Act, is further 
     amended by adding at the end the following new subdivision:
       ``(3) If an individual entitled to an annuity under section 
     2(a)(1)(i) or (iii) of this Act on the basis of less than ten 
     years of service is entitled to a benefit under section 
     202(a), section 202(b), or section 202(c) of the Social 
     Security Act which began to accrue before the annuity under 
     section 2(a)(1)(i) or (iii) of this Act, the annuity amount 
     provided such individual under this subsection, shall be 
     computed as though the annuity under this Act began to accrue 
     on the later of (A) the date on which the benefit under 
     section 202(a), section 202(b), or section 202(c) of the 
     Social Security Act began, or (B) the date on which the 
     individual first met the conditions for entitlement to an age 
     reduced annuity under this Act other than the conditions set 
     forth in sections 2(e)(1) and 2(e)(2) of this Act and the 
     requirement that an application be filed.''.
       (c) Survivors' Annuities.--Section 2(d)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231a(d)(1)) is amended by 
     inserting ``(or five years of service, all of which accrues 
     after December 31, 1995)'' after ``ten years of service''.
       (d) Limitation on Annuity Amounts.--Section 2 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231a) is amended 
     by adding at the end the following new subsection:
       ``(i) An individual entitled to an annuity under this 
     section who has completed five years of service, all of which 
     accrues after 1995, but who has not completed ten years of 
     service, and the spouse, divorced spouse, and survivors of 
     such individual, shall not be entitled to an annuity amount 
     provided under section 3(a), section 4(a), or section 4(f) of 
     this Act unless the individual, or the individual's spouse, 
     divorced spouse, or survivors, would be entitled to a benefit 
     under title II of the Social Security Act on the basis of the 
     individual's employment record under both this Act and title 
     II of the Social Security Act.''.
       (e) Computation Rule for Spouses' Annuities.--Section 4(a) 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 231c(a)), 
     as amended by section 102 of this Act, is further amended by 
     adding at the end the following new subdivision:
       ``(3) If a spouse entitled to an annuity under section 
     2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), or section 2(c)(2) of 
     this Act or a divorced spouse entitled to an annuity under 
     section 2(c)(4) of this Act on the basis of the employment 
     record of an employee who will have completed less than 10 
     years of service is entitled to a benefit under section 
     202(a), section 202(b), or section 202(c) of the Social 
     Security Act which began to accrue before the annuity under 
     section 2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), section 
     2(c)(2), or section 2(c)(4) of this Act, the annuity amount 
     provided under this subsection shall be computed as though 
     the annuity under this Act began to accrue on the later of 
     (A) the date on which the benefit under section 202(a), 
     section 202(b), or section 202(c) of the Social Security Act 
     began or (B) the first date on which the annuitant met the 
     conditions for entitlement to an age reduced annuity under 
     this Act other than the conditions set forth in sections 
     2(e)(1) and 2(e)(2) of this Act and the requirement that an 
     application be filed.''.
       (f)  Application Deeming Provision.--Section 5(b) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231d(b)) is 
     amended by striking the second sentence and inserting the 
     following new sentence: ``An application filed with the Board 
     for an employee annuity, spouse annuity, or divorced spouse 
     annuity on the basis of the employment record of an employee 
     who will have completed less than ten years of service shall 
     be deemed to be an application for any benefit to which such 
     applicant may be entitled under this Act or section 202(a), 
     section 202(b), or section 202(c) of the Social Security Act. 
     An application filed with the Board for an annuity on the 
     basis of the employment record of an employee who will have 
     completed ten years of service shall, unless the applicant 
     specified otherwise, be deemed to be an application for any 
     benefit to which such applicant may be entitled under this 
     Act or title II of the Social Security Act.''.
       (g) Crediting Service Under the Social Security Act.--
     Section 18(2) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231q(2)) is amended--
       (1) by inserting ``(or less than five years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' every place it appears; and
       (2) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten or 
     more years of service''.
       (h) Automatic Benefit Eligibility Adjustments.--Section 19 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 231r) is 
     amended--
       (1) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' in subsection (c); and
       (2) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' in subsection (d)(2).
       (i) Conforming Amendments.--
       (1) Section 6(e)(1) of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231e(1)) is amended by inserting ``(or five or 
     more years of service, all of which accrues after December 
     31, 1995)'' after ``ten years of service''.
       (2) Section 7(b)(2)(A) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231f(b)(2)(A)) is amended by inserting ``(or 
     five or more years of service, all of which accrues after 
     December 31, 1995)'' after ``ten years of service''.
       (3) Section 205(i) of the Social Security Act (42 U.S.C. 
     405(i)) is amended by inserting ``(or five or more years of 
     service, all of which accrues after December 31, 1995)'' 
     after ``ten years of service''.
       (4) Section 6(b)(2) of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231e(b)(2)) is amended by inserting ``(or five or 
     more years of service, all of which accrues after December 
     31, 1995)'' after ``ten years of service'' the second place 
     it appears.
       (j) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2002.

     SEC. 104. REPEAL OF RAILROAD RETIREMENT MAXIMUM.

       (a) Employee Annuities.--
       (1) In general.--Section 3(f) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231b(f)) is amended--
       (A) by striking subdivision (1); and
       (B) by redesignating subdivisions (2) and (3) as 
     subdivisions (1) and (2), respectively.
       (2) Conforming amendments.--
       (A) The first sentence of section 3(f)(1) of the Railroad 
     Retirement Act of 1974 (45

[[Page 23546]]

     U.S.C. 231b(f)(1)), as redesignated by paragraph (1)(B), is 
     amended by striking ``, without regard to the provisions of 
     subdivision (1) of this subsection,''.
       (B) Paragraphs (i) and (ii) of section 7(d)(2) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231f(d)(2)) are 
     each amended by striking ``section 3(f)(3)'' and inserting 
     ``section 3(f)(2)''.
       (b) Spouse and Survivor Annuities.--Section 4 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231c) is amended 
     by striking subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2002, and shall apply to 
     annuity amounts accruing for months after December 2001.

     SEC. 105. INVESTMENT OF RAILROAD RETIREMENT ASSETS.

       (a) Establishment of National Railroad Retirement 
     Investment Trust.--Section 15 of the Railroad Retirement Act 
     of 1974 (45 U.S.C. 231n) is amended by inserting after 
     subsection (i) the following new subsection:
       ``(j) National Railroad Retirement Investment Trust.--
       ``(1) Establishment.--The National Railroad Retirement 
     Investment Trust (hereinafter in this subsection referred to 
     as the `Trust') is hereby established as a trust domiciled in 
     the District of Columbia and shall, to the extent not 
     inconsistent with this Act, be subject to the laws of the 
     District of Columbia applicable to such trusts. The Trust 
     shall manage and invest its assets in the manner set forth in 
     this subsection.
       ``(2) Not a federal agency or instrumentality.--The Trust 
     is not a department, agency, or instrumentality of the 
     Government of the United States and shall not be subject to 
     title 31, United States Code.
       ``(3) Board of trustees.--
       ``(A) Generally.--
       ``(i) Membership.--The Trust shall have a Board of 
     Trustees, consisting of 7 members. Three shall represent the 
     interests of labor, 3 shall represent the interests of 
     management, and 1 shall be an independent Trustee. The 
     members of the Board of Trustees shall not be considered 
     officers or employees of the Government of the United States.
       ``(ii) Selection.--

       ``(I) The 3 members representing the interests of labor 
     shall be selected by the joint recommendation of labor 
     organizations, national in scope, organized in accordance 
     with section 2 of the Railway Labor Act, and representing at 
     least \2/3\ of all active employees, represented by such 
     national labor organizations, covered under this Act.
       ``(II) The 3 members representing the interests of 
     management shall be selected by the joint recommendation of 
     carriers as defined in section 1 of the Railway Labor Act 
     employing at least \2/3\ of all active employees covered 
     under this Act.
       ``(III) The independent member shall be selected by a 
     majority of the other 6 members of the Board of Trustees.

     A member of the Board of Trustees may be removed in the same 
     manner and by the same constituency that selected that 
     member.
       ``(iii) Dispute resolution.--In the event that the parties 
     specified in subclause (I), (II), or (III) of the previous 
     clause cannot agree on the selection of Trustees within 60 
     days of the date of enactment or 60 days from any subsequent 
     date that a position of the Board of Trustees becomes vacant, 
     an impartial umpire to decide such dispute shall, on the 
     petition of a party to the dispute, be appointed by the 
     District Court of the United States for the District of 
     Columbia.
       ``(B) Qualifications.--Members of the Board of Trustees 
     shall be appointed only from among persons who have 
     experience and expertise in the management of financial 
     investments and pension plans. No member of the Railroad 
     Retirement Board shall be eligible to be a member of the 
     Board of Trustees.
       ``(C) Terms.--Except as provided in this subparagraph, each 
     member shall be appointed for a 3-year term. The initial 
     members appointed under this paragraph shall be divided into 
     equal groups so nearly as may be, of which one group will be 
     appointed for a 1-year term, one for a 2-year term, and one 
     for a 3-year term. The Trustee initially selected pursuant to 
     clause (ii)(III) shall be appointed to a 3-year term. A 
     vacancy in the Board of Trustees shall not affect the powers 
     of the Board of Trustees and shall be filled in the same 
     manner as the selection of the member whose departure caused 
     the vacancy. Upon the expiration of a term of a member of the 
     Board of Trustees, that member shall continue to serve until 
     a successor is appointed.
       ``(4) Powers of the board of trustees.--The Board of 
     Trustees shall--
       ``(A) retain independent advisers to assist it in the 
     formulation and adoption of its investment guidelines;
       ``(B) retain independent investment managers to invest the 
     assets of the Trust in a manner consistent with such 
     investment guidelines;
       ``(C) invest assets in the Trust, pursuant to the policies 
     adopted in subparagraph (A);
       ``(D) pay administrative expenses of the Trust from the 
     assets in the Trust; and
       ``(E) transfer money to the disbursing agent or as 
     otherwise provided in section 7(b)(4), to pay benefits 
     payable under this Act from the assets of the Trust.
       ``(5) Reporting requirements and fiduciary standards.--The 
     following reporting requirements and fiduciary standards 
     shall apply with respect to the Trust:
       ``(A) Duties of the board of trustees.--The Trust and each 
     member of the Board of Trustees shall discharge their duties 
     (including the voting of proxies) with respect to the assets 
     of the Trust solely in the interest of the Railroad 
     Retirement Board and through it, the participants and 
     beneficiaries of the programs funded under this Act--
       ``(i) for the exclusive purpose of--

       ``(I) providing benefits to participants and their 
     beneficiaries; and
       ``(II) defraying reasonable expenses of administering the 
     functions of the Trust;

       ``(ii) with the care, skill, prudence, and diligence under 
     the circumstances then prevailing that a prudent person 
     acting in a like capacity and familiar with such matters 
     would use in the conduct of an enterprise of a like character 
     and with like aims;
       ``(iii) by diversifying investments so as to minimize the 
     risk of large losses and to avoid disproportionate influence 
     over a particular industry or firm, unless under the 
     circumstances it is clearly prudent not to do so; and
       ``(iv) in accordance with Trust governing documents and 
     instruments insofar as such documents and instruments are 
     consistent with this Act.
       ``(B) Prohibitions with respect to members of the board of 
     trustees.--No member of the Board of Trustees shall--
       ``(i) deal with the assets of the Trust in the trustee's 
     own interest or for the trustee's own account;
       ``(ii) in an individual or in any other capacity act in any 
     transaction involving the assets of the Trust on behalf of a 
     party (or represent a party) whose interests are adverse to 
     the interests of the Trust, the Railroad Retirement Board, or 
     the interests of participants or beneficiaries; or
       ``(iii) receive any consideration for the trustee's own 
     personal account from any party dealing with the assets of 
     the Trust.
       ``(C) Exculpatory provisions and insurance.--Any provision 
     in an agreement or instrument that purports to relieve a 
     trustee from responsibility or liability for any 
     responsibility, obligation, or duty under this Act shall be 
     void: Provided, however, That nothing shall preclude--
       ``(i) the Trust from purchasing insurance for its trustees 
     or for itself to cover liability or losses occurring by 
     reason of the act or omission of a trustee, if such insurance 
     permits recourse by the insurer against the trustee in the 
     case of a breach of a fiduciary obligation by such trustee;
       ``(ii) a trustee from purchasing insurance to cover 
     liability under this section from and for his own account; or
       ``(iii) an employer or an employee organization from 
     purchasing insurance to cover potential liability of one or 
     more trustees with respect to their fiduciary 
     responsibilities, obligations, and duties under this section.
       ``(D) Bonding.--Every trustee and every person who handles 
     funds or other property of the Trust (hereafter in this 
     subsection referred to as `Trust official') shall be bonded. 
     Such bond shall provide protection to the Trust against loss 
     by reason of acts of fraud or dishonesty on the part of any 
     Trust official, directly or through the connivance of others, 
     and shall be in accordance with the following:
       ``(i) The amount of such bond shall be fixed at the 
     beginning of each fiscal year of the Trust by the Railroad 
     Retirement Board. Such amount shall not be less than 10 
     percent of the amount of the funds handled. In no case shall 
     such bond be less than $1,000 nor more than $500,000, except 
     that the Railroad Retirement Board, after consideration of 
     the record, may prescribe an amount in excess of $500,000, 
     subject to the 10 per centum limitation of the preceding 
     sentence.
       ``(ii) It shall be unlawful for any Trust official to 
     receive, handle, disburse, or otherwise exercise custody or 
     control of any of the funds or other property of the Trust 
     without being bonded as required by this subsection and it 
     shall be unlawful for any Trust official, or any other person 
     having authority to direct the performance of such functions, 
     to permit such functions, or any of them, to be performed by 
     any Trust official, with respect to whom the requirements of 
     this subsection have not been met.
       ``(iii) It shall be unlawful for any person to procure any 
     bond required by this subsection from any surety or other 
     company or through any agent or broker in whose business 
     operations such person has any control or significant 
     financial interest, direct or indirect.
       ``(E) Audit and report.--
       ``(i) The Trust shall annually engage an independent 
     qualified public accountant to audit the financial statements 
     of the Trust.
       ``(ii) The Trust shall submit an annual management report 
     to the Congress not later than 180 days after the end of the 
     Trust's fiscal year. A management report under this 
     subsection shall include--

       ``(I) a statement of financial position;
       ``(II) a statement of operations;

[[Page 23547]]

       ``(III) a statement of cash flows;
       ``(IV) a statement on internal accounting and 
     administrative control systems;
       ``(V) the report resulting from an audit of the financial 
     statements of the Trust conducted under clause (i); and
       ``(VI) any other comments and information necessary to 
     inform the Congress about the operations and financial 
     condition of the Trust.

       ``(iii) The Trust shall provide the President, the Railroad 
     Retirement Board, and the Director of the Office of 
     Management and Budget a copy of the management report when it 
     is submitted to Congress.
       ``(F) Enforcement.--The Railroad Retirement Board may bring 
     a civil action--
       ``(i) to enjoin any act or practice by the Trust, its Board 
     of Trustees, or its employees or agents that violates any 
     provision of this Act; or
       ``(ii) to obtain other appropriate relief to redress such 
     violations, or to enforce any provisions of this Act.
       ``(6) Rules and administrative powers.--The Board of 
     Trustees shall have the authority to make rules to govern its 
     operations, employ professional staff, and contract with 
     outside advisers, including the Railroad Retirement Board, to 
     provide legal, accounting, investment advisory, or other 
     services necessary for the proper administration of this 
     subsection. In the case of contracts with investment advisory 
     services, compensation for such services may be on a fixed 
     contract fee basis or on such other terms and conditions as 
     are customary for such services.
       ``(7) Quorum.--Five members of the Board of Trustees 
     constitute a quorum to do business. Investment guidelines 
     must be adopted by a unanimous vote of the entire Board of 
     Trustees. All other decisions of the Board of Trustees shall 
     be decided by a majority vote of the quorum present. All 
     decisions of the Board of Trustees shall be entered upon the 
     records of the Board of Trustees.
       ``(8) Funding.--The expenses of the Trust and the Board of 
     Trustees incurred under this subsection shall be paid from 
     the Trust.''.
       (b) Conforming and Technical Amendments Governing 
     Investments.--Section 15(e) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231n(e)) is amended--
       (1) in the first sentence, by striking ``, the Dual 
     Benefits Payments Account'' and all that follows through 
     ``may be made only'' in the second sentence and inserting 
     ``and the Dual Benefits Payments Account as are not 
     transferred to the National Railroad Retirement Investment 
     Trust as the Board may determine'';
       (2) by striking ``the Second Liberty Bond Act, as amended'' 
     and inserting ``chapter 31 of title 31''; and
       (3) by striking ``the foregoing requirements'' and 
     inserting ``the requirements of this subsection''.
       (c) Means of Financing.--For all purposes of the 
     Congressional Budget Act of 1974, the Balanced Budget and 
     Emergency Deficit Control Act of 1985, and chapter 11 of 
     title 31, United States Code, and notwithstanding section 20 
     of the Office of Management and Budget Circular No. A-11, the 
     purchase or sale of non-Federal assets (other than gains or 
     losses from such transactions) by the National Railroad 
     Retirement Investment Trust shall be treated as a means of 
     financing.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the month that begins 
     more than 30 days after enactment.

     SEC. 106. ELIMINATION OF SUPPLEMENTAL ANNUITY ACCOUNT.

       (a) Source of Payments.--Section 7(c)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is amended by 
     striking ``payments of supplemental annuities under section 
     2(b) of this Act shall be made from the Railroad Retirement 
     Supplemental Account, and''.
       (b) Elimination of Account.--Section 15(c) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(c)) is repealed.
       (c) Amendment to Railroad Retirement Account.--Section 
     15(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231n(a)) is amended by striking ``, except those portions of 
     the amounts covered into the Treasury under sections 
     3211(b),'' and all that follows through the end of the 
     subsection and inserting a period.
       (d) Transfer.--
       (1) Determination.--As soon as possible after December 31, 
     2001, the Railroad Retirement Board shall--
       (A) determine the amount of funds in the Railroad 
     Retirement Supplemental Account under section 15(c) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(c)) as of the 
     date of such determination; and
       (B) direct the Secretary of the Treasury to transfer such 
     funds to the National Railroad Retirement Investment Trust 
     under section 15(j) of such Act (as added by section 105).
       (2) Transfer by the secretary of the treasury.--The 
     Secretary of the Treasury shall make the transfer described 
     in paragraph (1).
       (e) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsections (a), (b), and (c) shall take effect 
     January 1, 2002.
       (2) Account in existence until transfer made.--The Railroad 
     Retirement Supplemental Account under section 15(c) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(c)) shall 
     continue to exist until the date that the Secretary of the 
     Treasury makes the transfer described in subsection (d)(2).

     SEC. 107. TRANSFER AUTHORITY REVISIONS.

       (a) Railroad Retirement Account.--Section 15 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n) is amended 
     by adding after subsection (j) the following new subsection:
       ``(k) Transfers to the Trust.--The Board shall, upon 
     establishment of the National Railroad Retirement Investment 
     Trust and from time to time thereafter, direct the Secretary 
     of the Treasury to transfer, in such manner as will maximize 
     the investment returns to the Railroad Retirement system, 
     that portion of the Railroad Retirement Account that is not 
     needed to pay current administrative expenses of the Board to 
     the National Railroad Retirement Investment Trust. The 
     Secretary shall make that transfer.''.
       (b) Transfers From the National Railroad Retirement 
     Investment Trust.--Section 15 of the Railroad Retirement Act 
     of 1974 (45 U.S.C. 231n), as amended by subsection (a), is 
     further amended by adding after subsection (k) the following 
     new subsection:
       ``(l) National Railroad Retirement Investment Trust.--The 
     National Railroad Retirement Investment Trust shall from time 
     to time transfer to the disbursing agent described in section 
     7(b)(4) or as otherwise directed by the Railroad Retirement 
     Board pursuant to section 7(b)(4), such amounts as may be 
     necessary to pay benefits under this Act (other than benefits 
     paid from the Social Security Equivalent Benefit Account or 
     the Dual Benefit Payments Account).''.
       (c) Social Security Equivalent Benefit Account.--
       (1) Transfers to trust.--Section 15A(d)(2) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n-1(d)(2)) is amended to 
     read as follows:
       ``(2) Upon establishment of the National Railroad 
     Retirement Investment Trust and from time to time thereafter, 
     the Board shall direct the Secretary of the Treasury to 
     transfer, in such manner as will maximize the investment 
     returns to the Railroad Retirement system, the balance of the 
     Social Security Equivalent Benefit Account not needed to pay 
     current benefits and administrative expenses required to be 
     paid from that Account to the National Railroad Retirement 
     Investment Trust, and the Secretary shall make that transfer. 
     Any balance transferred under this paragraph shall be used by 
     the National Railroad Retirement Investment Trust only to pay 
     benefits under this Act or to purchase obligations of the 
     United States that are backed by the full faith and credit of 
     the United States pursuant to chapter 31 of title 31, United 
     States Code. The proceeds of sales of, and the interest 
     income from, such obligations shall be used by the Trust only 
     to pay benefits under this Act.''.
       (2) Transfers to disbursing agent.--Section 15A(c)(1) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(c)(1)) 
     is amended by adding at the end the following new sentence: 
     ``The Secretary shall from time to time transfer to the 
     disbursing agent under section 7(b)(4) amounts necessary to 
     pay those benefits.''.
       (3) Conforming amendment.--Section 15A(d)(1) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(d)(1)) is 
     amended by striking the second and third sentences.
       (d) Dual Benefits Payments Account.--Section 15(d)(1) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n(d)(1)) is 
     amended by adding at the end the following new sentence: 
     ``The Secretary of the Treasury shall from time to time 
     transfer from the Dual Benefits Payments Account to the 
     disbursing agent under section 7(b)(4) amounts necessary to 
     pay benefits payable from that Account.''.
       (e) Certification by the Board and Payment.--Paragraph (4) 
     of section 7(b) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231f(b)(4)) is amended to read as follows:
       ``(4)(A) The Railroad Retirement Board, after consultation 
     with the Board of Trustees of the National Railroad 
     Retirement Investment Trust and the Secretary of the 
     Treasury, shall enter into an arrangement with a 
     nongovernmental financial institution to serve as disbursing 
     agent for benefits payable under this Act who shall disburse 
     consolidated benefits under this Act to each recipient. 
     Pending the taking effect of that arrangement, benefits shall 
     be paid as under the law in effect prior to the enactment of 
     the Railroad Retirement and Survivors' Improvement Act of 
     2001.
       ``(B) The Board shall from time to time certify--
       ``(i) to the Secretary of the Treasury the amounts required 
     to be transferred from the Social Security Equivalent Benefit 
     Account and the Dual Benefits Payments Account to the 
     disbursing agent to make payments of benefits and the 
     Secretary of the Treasury shall transfer those amounts;
       ``(ii) to the Board of Trustees of the National Railroad 
     Retirement Investment Trust the amounts required to be 
     transferred from the National Railroad Retirement Investment 
     Trust to the disbursing agent to

[[Page 23548]]

     make payments of benefits and the Board of Trustees shall 
     transfer those amounts; and
       ``(iii) to the disbursing agent the name and address of 
     each individual entitled to receive a payment, the amount of 
     such payment, and the time at which the payment should be 
     made.''.
       (f) Benefit Payments.--Section 7(c)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is amended--
       (1) by striking ``from the Railroad Retirement Account'' 
     and inserting ``by the disbursing agent under subsection 
     (b)(4) from money transferred to it from the National 
     Railroad Retirement Investment Trust or the Social Security 
     Equivalent Benefit Account, as the case may be''; and
       (2) by inserting ``by the disbursing agent under subsection 
     (b)(4) from money transferred to it'' after ``Public Law 93-
     445 shall be made''.
       (g) Transitional Rule for Existing Obligation.--In making 
     transfers under sections 15(k) and 15A(d)(2) of the Railroad 
     Retirement Act of 1974, as amended by subsections (a) and 
     (c), respectively, the Railroad Retirement Board shall 
     consult with the Secretary of the Treasury to design an 
     appropriate method to transfer obligations held as of the 
     date of enactment of this Act or to convert such obligations 
     to cash at the discretion of the Railroad Retirement Board 
     prior to transfer. The National Railroad Retirement 
     Investment Trust may hold to maturity any obligations so 
     received or may redeem them prior to maturity, as the Trust 
     deems appropriate.

     SEC. 108. ANNUAL RATIO PROJECTIONS AND CERTIFICATIONS BY THE 
                   RAILROAD RETIREMENT BOARD.

       (a) Projections.--Section 22(a)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231u(a)(1)) is amended--
       (1) by inserting after the first sentence the following new 
     sentence: ``On or before May 1 of each year beginning in 
     2003, the Railroad Retirement Board shall compute its 
     projection of the account benefits ratio and the average 
     account benefits ratio (as defined by section 3241(c) of the 
     Internal Revenue Code of 1986) for each of the next 
     succeeding five fiscal years.''; and
       (2) by striking ``the projection prepared pursuant to the 
     preceding sentence'' and inserting ``the projections prepared 
     pursuant to the preceding two sentences''.
       (b) Certifications.--The Railroad Retirement Act of 1974 
     (45 U.S.C. 231 et seq.) is amended by adding at the end the 
     following new section:


       ``computation and certification of account benefit ratios

       ``Sec. 23. (a) Initial Computation and Certification.--On 
     or before November 1, 2003, the Railroad Retirement Board 
     shall--
       ``(1) compute the account benefits ratios for each of the 
     most recent 10 preceding fiscal years, and
       ``(2) certify the account benefits ratios for each such 
     fiscal year to the Secretary of the Treasury.
       ``(b) Computations and Certifications After 2003.--On or 
     before November 1 of each year after 2003, the Railroad 
     Retirement Board shall--
       ``(1) compute the account benefits ratio for the fiscal 
     year ending in such year, and
       ``(2) certify the account benefits ratio for such fiscal 
     year to the Secretary of the Treasury.
       ``(c) Definition.--As used in this section, the term 
     `account benefits ratio' has the meaning given that term in 
     section 3241(c) of the Internal Revenue Code of 1986.''.

       TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

     SEC. 201. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

       Except as otherwise provided, whenever in this title an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.

     SEC. 202. EXEMPTION FROM TAX FOR NATIONAL RAILROAD RETIREMENT 
                   INVESTMENT TRUST.

       Subsection (c) of section 501 is amended by adding at the 
     end the following new paragraph:
       ``(28) The National Railroad Retirement Investment Trust 
     established under section 15(j) of the Railroad Retirement 
     Act of 1974.''.

     SEC. 203. REPEAL OF SUPPLEMENTAL ANNUITY TAX.

       (a) Repeal of Tax on Employee Representatives.--Section 
     3211 is amended by striking subsection (b).
       (b) Repeal of Tax on Employers.--Section 3221 is amended by 
     striking subsections (c) and (d) and by redesignating 
     subsection (e) as subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2001.

     SEC. 204. EMPLOYER, EMPLOYEE REPRESENTATIVE, AND EMPLOYEE 
                   TIER 2 TAX RATE ADJUSTMENTS.

       (a) Rate of Tax on Employers.--Subsection (b) of section 
     3221 is amended to read as follows:
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on every employer an excise tax, with respect 
     to having individuals in his employ, equal to the applicable 
     percentage of the compensation paid during any calendar year 
     by such employer for services rendered to such employer.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 15.6 percent in the case of compensation paid during 
     2002,
       ``(B) 14.2 percent in the case of compensation paid during 
     2003, and
       ``(C) in the case of compensation paid during any calendar 
     year after 2003, the percentage determined under section 3241 
     for such calendar year.''.
       (b) Rate of Tax on Employee Representatives.--Section 3211, 
     as amended by section 203, is amended by striking subsection 
     (a) and inserting the following new subsections:
       ``(a) Tier 1 Tax.--In addition to other taxes, there is 
     hereby imposed on the income of each employee representative 
     a tax equal to the applicable percentage of the compensation 
     received during any calendar year by such employee 
     representative for services rendered by such employee 
     representative. For purposes of the preceding sentence, the 
     term `applicable percentage' means the percentage equal to 
     the sum of the rates of tax in effect under subsections (a) 
     and (b) of section 3101 and subsections (a) and (b) of 
     section 3111 for the calendar year.
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on the income of each employee representative 
     a tax equal to the applicable percentage of the compensation 
     received during any calendar year by such employee 
     representatives for services rendered by such employee 
     representative.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 14.75 percent in the case of compensation received 
     during 2002,
       ``(B) 14.20 percent in the case of compensation received 
     during 2003, and
       ``(C) in the case of compensation received during any 
     calendar year after 2003, the percentage determined under 
     section 3241 for such calendar year.
       ``(c) Cross Reference.--
  ``For application of different contribution bases with respect to the 
taxes imposed by subsections (a) and (b), see section 3231(e)(2).''.
       (c) Rate of Tax on Employees.--Subsection (b) of section 
     3201 is amended to read as follows:
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on the income of each employee a tax equal to 
     the applicable percentage of the compensation received during 
     any calendar year by such employee for services rendered by 
     such employee.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 4.90 percent in the case of compensation received 
     during 2002 or 2003, and
       ``(B) in the case of compensation received during any 
     calendar year after 2003, the percentage determined under 
     section 3241 for such calendar year.''.
       (d) Determination of Rate.--Chapter 22 is amended by adding 
     at the end the following new subchapter:

             ``Subchapter E--Tier 2 Tax Rate Determination

``Sec. 3241. Determination of tier 2 tax rate based on average account 
              benefits ratio.

     ``SEC. 3241. DETERMINATION OF TIER 2 TAX RATE BASED ON 
                   AVERAGE ACCOUNT BENEFITS RATIO.

       ``(a) In General.--For purposes of sections 3201(b), 
     3211(b), and 3221(b), the applicable percentage for any 
     calendar year is the percentage determined in accordance with 
     the table in subsection (b).
       ``(b) Tax Rate Schedule.--


------------------------------------------------------------------------
 ``Average account benefits ratio       Applicable
-----------------------------------   percentage for       Applicable
                                     sections 3211(b)    percentage for
    At least        But less than      and 3221(b)      section 3201(b)
------------------------------------------------------------------------
                            2.5                22.1                4.9
          2.5               3.0                18.1                4.9
          3.0               3.5                15.1                4.9
          3.5               4.0                14.1                4.9
          4.0               6.1                13.1                4.9
          6.1               6.5                12.6                4.4
          6.5               7.0                12.1                3.9
          7.0               7.5                11.6                3.4
          7.5               8.0                11.1                2.9
          8.0               8.5                10.1                1.9
          8.5               9.0                 9.1                0.9
          9.0                                   8.2                  0
------------------------------------------------------------------------

       ``(c) Definitions Related to Determination of Rates of 
     Tax.--
       ``(1) Average account benefits ratio.--For purposes of this 
     section, the term `average account benefits ratio' means, 
     with respect to any calendar year, the average determined by 
     the Secretary of the account benefits ratios for the 10 most 
     recent fiscal years ending before such calendar year. If the 
     amount determined under the preceding sentence is not a 
     multiple of 0.1, such amount shall be increased to the next 
     highest multiple of 0.1.

[[Page 23549]]

       ``(2) Account benefits ratio.--For purposes of this 
     section, the term `account benefits ratio' means, with 
     respect to any fiscal year, the amount determined by the 
     Railroad Retirement Board by dividing the fair market value 
     of the assets in the Railroad Retirement Account and of the 
     National Railroad Retirement Investment Trust (and for years 
     before 2002, the Social Security Equivalent Benefits Account) 
     as of the close of such fiscal year by the total benefits and 
     administrative expenses paid from the Railroad Retirement 
     Account and the National Railroad Retirement Investment Trust 
     during such fiscal year.
       ``(d) Notice.--No later than December 1 of each calendar 
     year, the Secretary shall publish a notice in the Federal 
     Register of the rates of tax determined under this section 
     which are applicable for the following calendar year.''.
       (e) Conforming Amendments.--
       (1) Section 24(d)(3)(A)(iii) is amended by striking 
     ``section 3211(a)(1)'' and inserting ``section 3211(a)''.
       (2) Section 72(r)(2)(B)(i) is amended by striking 
     ``3211(a)(2)'' and inserting ``3211(b)''.
       (3) Paragraphs (2)(A)(iii)(II) and (4)(A) of section 
     3231(e) are amended by striking ``3211(a)(1)'' and inserting 
     ``3211(a)''.
       (4) Section 3231(e)(2)(B)(ii)(I) is amended by striking 
     ``3211(a)(2)'' and inserting ``3211(b)''.
       (5) The table of subchapters for chapter 22 is amended by 
     adding at the end the following new item:
``Subchapter E. Tier 2 tax rate determination.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2001.
       Amend the title so as to read: ``An Act to modernize the 
     financing of the railroad retirement system and to provide 
     enhanced benefits to employees and beneficiaries.''.
                                  ____

  SA 2171. Mr. LOTT (for himself, Mr. Murkowski, and Mr. Brownback) 
proposed an amendment to amendment SA 2170 submitted by Mr. Daschle and 
intended to be proposed to the bill (H.R. 10) to provide for pension 
reform, and for other purposes; as follows:

       At the appropriate place, insert the following and 
     redesignate accordingly:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.
Sec. 2. Energy policy.

                               DIVISION A

Sec. 100. Short title.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

Sec. 101. Authorization of appropriations.

         Subtitle B--Federal Leadership in Energy Conservation

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

                       Subtitle C--State Programs

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

          Subtitle D--Energy Efficiency for Consumer Products

Sec. 141. Energy Star program.
Sec. 141A. Energy sun renewable and alternative energy program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.

                 Subtitle E--Energy Efficient Vehicles

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

                      Subtitle F--Other Provisions

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

                   TITLE II--AUTOMOBILE FUEL ECONOMY

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

                       TITLE III--NUCLEAR ENERGY

Sec. 301. License period.
Sec. 302. Cost recovery from Government agencies.
Sec. 303. Depleted uranium hexafluoride.
Sec. 304. Nuclear Regulatory Commission meetings.
Sec. 305. Cooperative research and development and special 
              demonstration projects for the uranium mining industry.
Sec. 306. Maintenance of a viable domestic uranium conversion industry.
Sec. 307. Paducah decontamination and decommissioning plan.
Sec. 308. Study to determine feasibility of developing commercial 
              nuclear energy production facilities at existing 
              department of energy sites.
Sec. 309. Prohibition of commercial sales of uranium by the United 
              States until 2009.

                     TITLE IV--HYDROELECTRIC ENERGY

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

                             TITLE V--FUELS

Sec. 501. Tank draining during transition to summertime RFG.
Sec. 502. Gasoline blendstock requirements.
Sec. 503. Boutique fuels.
Sec. 504. Funding for MTBE contamination.

                       TITLE VI--RENEWABLE ENERGY

Sec. 601. Assessment of renewable energy resources.
Sec. 602. Renewable energy production incentive.
Sec. 603. Study of ethanol from solid waste loan guarantee program.
Sec. 604. Study of renewable fuel content.

                          TITLE VII--PIPELINES

Sec. 701. Prohibition on certain pipeline route.
Sec. 702. Historic pipelines.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Waste reduction and use of alternatives.
Sec. 802. Annual report on United States energy independence.
Sec. 803. Study of aircraft emissions.

                               DIVISION B

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

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

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

          Subtitle B--Distributed Power Hybrid Energy Systems

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

           Subtitle C--Secondary Electric Vehicle Battery Use

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

                     Subtitle D--Green School Buses

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

            Subtitle E--Next Generation Lighting Initiative

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

[[Page 23550]]

    Subtitle F--Department of Energy Authorization of Appropriations

Sec. 2161. Authorization of appropriations.

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

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

          Subtitle H--National Building Performance Initiative

Sec. 2181. National Building Performance Initiative.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

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

                         Subtitle B--Bioenergy

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

            Subtitle C--Transmission Infrastructure Systems

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

    Subtitle D--Department of Energy Authorization of Appropriations

Sec. 2261. Authorization of appropriations.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

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

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

Sec. 2321. Program.

    Subtitle C--Department of Energy Authorization of Appropriations

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

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

Sec. 2401. Coal and related technologies programs.

                        Subtitle B--Oil and Gas

Sec. 2421. Petroleum-oil technology.
Sec. 2422. Gas.
Sec. 2423. Natural gas and oil deposits report.
Sec. 2424. Oil shale research.

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

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

                         Subtitle D--Fuel Cells

Sec. 2461. Fuel cells.

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2481. Authorization of appropriations.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

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

                 Subtitle B--Spallation Neutron Source

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

      Subtitle C--Facilities, Infrastructure, and User Facilities

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

            Subtitle D--Advisory Panel on Office of Science

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

    Subtitle E--Department of Energy Authorization of Appropriations

Sec. 2581. Authorization of appropriations.

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

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

               Subtitle B--Other Miscellaneous Provisions

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

                               DIVISION D

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

                               DIVISION E

Sec. 5000. Short title.
Sec. 5001. Findings.
Sec. 5002. Definitions.
Sec. 5003. Clean coal power initiative.
Sec. 5004. Cost and performance goals.
Sec. 5005. Authorization of appropriations.
Sec. 5006. Project criteria.
Sec. 5007. Study.
Sec. 5008. Clean coal centers of excellence.

                               DIVISION F

Sec. 6000. Short title.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

Sec. 6101. Study of existing rights-of-way on Federal lands to 
              determine capability to support new pipelines or other 
              transmission facilities.
Sec. 6102. Inventory of energy production potential of all Federal 
              public lands.
Sec. 6103. Review of regulations to eliminate barriers to emerging 
              energy technology.
Sec. 6104. Interagency agreement on environmental review of interstate 
              natural gas pipeline projects.
Sec. 6105. Enhancing energy efficiency in management of Federal lands.
Sec. 6106. Efficient infrastructure development.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

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

       Subtitle B--Improvements to Federal Oil and Gas Management

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

                       Subtitle C--Miscellaneous

Sec. 6231. Offshore subsalt development.
Sec. 6232. Program on oil and gas royalties in kind.
Sec. 6233. Marginal well production incentives.
Sec. 6234. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.
Sec. 6235. Encouragement of State and provincial prohibitions on off-
              shore drilling in the Great Lakes.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

Sec. 6301. Royalty reduction and relief.
Sec. 6302. Exemption from royalties for direct use of low temperature 
              geothermal energy resources.
Sec. 6303. Amendments relating to leasing on Forest Service lands.
Sec. 6304. Deadline for determination on pending noncompetitive lease 
              applications.

[[Page 23551]]

Sec. 6305. Opening of public lands under military jurisdiction.
Sec. 6306. Application of amendments.
Sec. 6307. Review and report to Congress.
Sec. 6308. Reimbursement for costs of NEPA analyses, documentation, and 
              studies.

                          TITLE IV--HYDROPOWER

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

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

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

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

Sec. 6601. Energy conservation by the Department of the Interior.
Sec. 6602. Amendment to Buy Indian Act.

                            TITLE VII--COAL

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

               TITLE VIII--INSULAR AREAS ENERGY SECURITY

Sec. 6801. Insular areas energy security.

                               DIVISION G

Sec. 7101. Buy American.

     SEC. 2. ENERGY POLICY.

       It shall be the sense of the Congress that the United 
     States should take all actions necessary in the areas of 
     conservation, efficiency, alternative source, technology 
     development, and domestic production to reduce the United 
     States dependence on foreign energy sources from 56 percent 
     to 45 percent by January 1, 2012, and to reduce United States 
     dependence on Iraqi energy sources from 700,000 barrels per 
     day to 250,000 barrels per day by January 1, 2012.

                               DIVISION A

     SEC. 100. SHORT TITLE.

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

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Section 660 of the Department of Energy Organization Act 
     (42 U.S.C. 7270) is amended as follows:
       (1) By inserting ``(a)'' before ``Appropriations''.
       (2) By inserting at the end the following new subsection:
       ``(b) There are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2002, $950,000,000; for 
     fiscal year 2003, $1,000,000,000; for fiscal year 2004, 
     $1,050,000,000; for fiscal year 2005, $1,100,000,000; and for 
     fiscal year 2006, $1,150,000,000, to carry out energy 
     efficiency activities under the following laws, such sums to 
     remain available until expended:

       ``(1) Energy Policy and Conservation Act, including section 
     256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient 
     products), sections 321 through 346 (42 U.S.C. 6291-6317) 
     (appliances program).
       ``(2) Energy Conservation and Production Act, including 
     sections 301 through 308 (42 U.S.C. 6831-6837) (energy 
     conservation standards for new buildings).
       ``(3) National Energy Conservation Policy Act, including 
     sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy 
     Management Program).
       ``(4) Energy Policy Act of 1992, including sections 103 (42 
     U.S.C. 13458) (energy efficient lighting and building 
     centers), 121 (42 U.S.C. 6292 note) (energy efficiency 
     labeling for windows and window systems), 125 (42 U.S.C. 6292 
     note) (energy efficiency information for commercial office 
     equipment), 126 (42 U.S.C. 6292 note) (energy efficiency 
     information for luminaires), 131 (42 U.S.C. 6348) (energy 
     efficiency in industrial facilities), and 132 (42 U.S.C. 
     6349) (process-oriented industrial energy efficiency).''.

         Subtitle B--Federal Leadership in Energy Conservation

     SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

       (a) Purpose.--Section 542 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8252) is amended by 
     inserting ``, and generally to promote the production, 
     supply, and marketing of energy efficiency products and 
     services and the production, supply, and marketing of 
     unconventional and renewable energy resources'' after ``by 
     the Federal Government''.
       (b) Energy Management Requirements.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended as follows:
       (1) In subsection (a)(1), by striking ``during the fiscal 
     year 1995'' and all that follows through the end and 
     inserting ``during--
       ``(1) fiscal year 1995 is at least 10 percent;
       ``(2) fiscal year 2000 is at least 20 percent;
       ``(3) fiscal year 2005 is at least 30 percent;
       ``(4) fiscal year 2010 is at least 35 percent;
       ``(5) fiscal year 2015 is at least 40 percent; and
       ``(6) fiscal year 2020 is at least 45 percent,

     less than the energy consumption per gross square foot of its 
     Federal buildings in use during fiscal year 1985. To achieve 
     the reductions required by this paragraph, an agency shall 
     make maximum practicable use of energy efficiency products 
     and services and unconventional and renewable energy 
     resources, using guidelines issued by the Secretary under 
     subsection (d) of this section.''.
       (2) In subsection (d), by inserting ``Such guidelines shall 
     include appropriate model technical standards for energy 
     efficiency and unconventional and renewable energy resources 
     products and services. Such standards shall reflect, to the 
     extent practicable, evaluation of both currently marketed and 
     potentially marketable products and services that could be 
     used by agencies to improve energy efficiency and increase 
     unconventional and renewable energy resources.'' after 
     ``implementation of this part.''.
       (3) By adding at the end the following new subsection:
       ``(e) Studies.--To assist in developing the guidelines 
     issued by the Secretary under subsection (d) and in 
     furtherance of the purposes of this section, the Secretary 
     shall conduct studies to identify and encourage the 
     production and marketing of energy efficiency products and 
     services and unconventional and renewable energy resources. 
     To conduct such studies, and to provide grants to accelerate 
     the use of unconventional and renewable energy, there are 
     authorized to be appropriated to the Secretary $20,000,000 
     for each of the fiscal years 2003 through 2010.''.
       (c) Definition.--Section 551 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8259) is amended as 
     follows:
       (1) By striking ``and'' at the end of paragraph (8).
       (2) By striking the period at the end of paragraph (9) and 
     inserting ``; and''.
       (3) By adding at the end the following new paragraph:
       ``(10) the term `unconventional and renewable energy 
     resources' includes renewable energy sources, hydrogen, fuel 
     cells, cogeneration, combined heat and power, heat recovery 
     (including by use of a Stirling heat engine), and distributed 
     generation.''.
       (d) Exclusions From Requirement.--The National Energy 
     Conservation Policy Act (42 U.S.C. 7201 and following) is 
     amended as follows:
       (1) In section 543(a)--
       (A) by striking ``(1) Subject to paragraph (2)'' and 
     inserting ``Subject to subsection (c)''; and
       (B) by striking ``(2) An agency'' and all that follows 
     through ``such exclusion.''.
       (2) By amending subsection (c) of such section 543 to read 
     as follows:
       ``(c) Exclusions.--(1) A Federal building may be excluded 
     from the requirements of subsections (a) and (b) only if--
       ``(A) the President declares the building to require 
     exclusion for national security reasons; and
       ``(B) the agency responsible for the building has--
       ``(i) completed and submitted all federally required energy 
     management reports; and
       ``(ii) achieved compliance with the energy efficiency 
     requirements of this Act, the Energy Policy Act of 1992, 
     Executive Orders, and other Federal law;
       ``(iii) implemented all practical, life cycle cost-
     effective projects in the excluded building.
       ``(2) The President shall only declare buildings described 
     in paragraph (1)(A) to be excluded, not ancillary or nearby 
     facilities that are not in themselves national security 
     facilities.''.
       (3) In section 548(b)(1)(A)--
       (A) by striking ``copy of the''; and
       (B) by striking ``sections 543(a)(2) and 543(c)(3)'' and 
     inserting ``section 543(c)''.
       (e) Acquisition Requirement.--Section 543(b) of such Act is 
     amended--
       (1) in paragraph (1), by striking ``(1) Not'' and inserting 
     ``(1) Except as provided in paragraph (5), not''; and
       (2) by adding at the end the following new paragraph:
       ``(5)(A)(i) Agencies shall select only Energy Star products 
     when available when acquiring energy-using products. For 
     product groups where Energy Star labels are not yet 
     available, agencies shall select products that are in the 
     upper 25 percent of energy efficiency as designated by FEMP. 
     In the case of electric motors of 1 to 500 horsepower, 
     agencies shall select only premium efficiency motors

[[Page 23552]]

     that meet a standard designated by the Secretary, and shall 
     replace (not rewind) failed motors with motors meeting such 
     standard. The Secretary shall designate such standard within 
     90 days of the enactment of paragraph, after considering 
     recommendations by the National Electrical Manufacturers 
     Association. The Secretary of Energy shall develop guidelines 
     within 180 days after the enactment of this paragraph for 
     exemptions to this section when equivalent products do not 
     exist, are impractical, or do not meet the agency mission 
     requirements.
       ``(ii) The Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency), with assistance from the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Energy, shall create clear catalogue listings 
     that designate Energy Star products in both print and 
     electronic formats. After any existing federal inventories 
     are exhausted, Administrator of the General Services 
     Administration and the Secretary of Defense (acting through 
     the Defense Logistics Agency) shall only replace inventories 
     with energy-using products that are Energy Star, products 
     that are rated in the top 25 percent of energy efficiency, or 
     products that are exempted as designated by FEMP and defined 
     in clause (i).
       ``(iii) Agencies shall incorporate energy-efficient 
     criteria consistent with Energy Star and other FEMP 
     designated energy efficiency levels into all guide 
     specifications and project specifications developed for new 
     construction and renovation, as well as into product 
     specification language developed for Basic Ordering 
     Agreements, Blanket Purchasing Agreements, Government Wide 
     Acquisition Contracts, and all other purchasing procedures.
       ``(iv) The legislative branch shall be subject to this 
     subparagraph to the same extent and in the same manner as are 
     the Federal agencies referred to in section 521(1).
       ``(B) Not later than 6 months after the date of the 
     enactment of this paragraph, the Secretary of Energy shall 
     establish guidelines defining the circumstances under which 
     an agency shall not be required to comply with subparagraph 
     (A). Such circumstances may include the absence of Energy 
     Star products, systems, or designs that serve the purpose of 
     the agency, issues relating to the compatibility of a 
     product, system, or design with existing buildings or 
     equipment, and excessive cost compared to other available and 
     appropriate products, systems, or designs.
       ``(C) Subparagraph (A) shall apply to agency acquisitions 
     occurring on or after October 1, 2002.''.
       (f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is 
     amended by adding at the end the following new subsection:
       ``(f) Metering.--(1) By October 1, 2004, all Federal 
     buildings including buildings owned by the legislative branch 
     and the Federal court system and other energy-using 
     structures shall be metered or submetered in accordance with 
     guidelines established by the Secretary under paragraph (2).
       ``(2) Not later than 6 months after the date of the 
     enactment of this subsection, the Secretary, in consultation 
     with the General Services Administration and representatives 
     from the metering industry, energy services industry, 
     national laboratories, colleges of higher education, and 
     federal facilities energy managers, shall establish 
     guidelines for agencies to carry out paragraph (1). Such 
     guidelines shall take into consideration each of the 
     following:
       ``(A) Cost.
       ``(B) Resources, including personnel, required to maintain, 
     interpret, and report on data so that the meters are 
     continually reviewed.
       ``(C) Energy management potential.
       ``(D) Energy savings.
       ``(E) Utility contract aggregation.
       ``(F) Savings from operations and maintenance.
       ``(3) A building shall be exempt from the requirement of 
     this section to the extent that compliance is deemed 
     impractical by the Secretary. A finding of impracticability 
     shall be based on the same factors as identified in 
     subsection (c) of this section.''.
       (g) Retention of Energy Savings.--Section 546 of such Act 
     (42 U.S.C. 8256) is amended by adding at the end the 
     following new subsection:
       ``(e) Retention of Energy Savings.--An agency may retain 
     any funds appropriated to that agency for energy 
     expenditures, at buildings subject to the requirements of 
     section 543(a) and (b), that are not made because of energy 
     savings. Except as otherwise provided by law, such funds may 
     be used only for energy efficiency or unconventional and 
     renewable energy resources projects.''.
       (h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is 
     amended as follows:
       (1) In subsection (a)--
       (A) by inserting ``in accordance with guidelines 
     established by and'' after ``to the Secretary,'';
       (B) by striking ``and'' at the end of paragraph (1);
       (C) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (D) by adding at the end the following new paragraph:
       ``(3) an energy emergency response plan developed by the 
     agency.''.
       (2) In subsection (b)--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(5) all information transmitted to the Secretary under 
     subsection (a).''.
       (3) By amending subsection (c) to read as follows:
       ``(c) Agency Reports to Congress.--Each agency shall 
     annually report to the Congress, as part of the agency's 
     annual budget request, on all of the agency's activities 
     implementing any Federal energy management requirement.''.
       (i) Inspector General Energy Audits.--Section 160(c) of the 
     Energy Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by 
     striking ``is encouraged to conduct periodic'' and inserting 
     ``shall conduct periodic''.
       (j) Federal Energy Management Reviews.--Section 543 of the 
     National Energy Conservation Policy Act (42 U.S.C. 8253) is 
     amended by adding at the end the following:
       ``(g) Priority Response Reviews.--Each agency shall--
       ``(1) not later than 9 months after the date of the 
     enactment of this subsection, undertake a comprehensive 
     review of all practicable measures for--
       ``(A) increasing energy and water conservation, and
       ``(B) using renewable energy sources; and
       ``(2) not later than 180 days after completing the review, 
     develop plans to achieve not less than 50 percent of the 
     potential efficiency and renewable savings identified in the 
     review.
     The agency shall implement such measures as soon thereafter 
     as is practicable, consistent with compliance with the 
     requirements of this section.''.

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

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

[[Page 23553]]



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

       Section 546(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8256(c)) is amended as follows:
       (1) In paragraph (3) by adding at the end the following: 
     ``Such a utility incentive program may include a contract or 
     contract term designed to provide for cost-effective 
     electricity demand management, energy efficiency, or water 
     conservation.''.
       (2) By adding at the end of the following new paragraphs:
       ``(6) Federal agencies are encouraged to participate in 
     State or regional demand side reduction programs, including 
     those operated by wholesale market institutions such as 
     independent system operators, regional transmission 
     organizations and other entities. The availability of such 
     programs, and the savings resulting from such participation, 
     should be included in the evaluation of energy options for 
     Federal facilities.''.

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

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

     SEC. 125. ADVANCED BUILDING EFFICIENCY TESTBED.

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

     SEC. 126. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is amended by adding at the end the 
     following new subsection:
       ``(h) Use of Interval Data in Federal Buildings.--Not later 
     than January 1, 2003, each agency shall utilize, to the 
     maximum extent practicable, for the purposes of efficient use 
     of energy and reduction in the cost of electricity consumed 
     in its Federal buildings, interval consumption data that 
     measure on a real time or daily basis consumption of 
     electricity in its Federal buildings. To meet the 
     requirements of this subsection each agency shall prepare and 
     submit at the earliest opportunity pursuant to section 548(a) 
     to the Secretary, a plan describing how the agency intends to 
     meet such requirements, including how it will designate 
     personnel primarily responsible for achieving such 
     requirements, and otherwise implement this subsection.''.

     SEC. 127. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT 
                   PROGRAM.

       Within 180 days after the date of the enactment of this 
     Act, the Secretary of Energy shall complete a review of the 
     Energy Savings Performance Contract program to identify 
     statutory, regulatory, and administrative obstacles that 
     prevent Federal agencies from fully utilizing the program. In 
     addition, this review shall identify all areas for increasing 
     program flexibility and effectiveness, including audit and 
     measurement verification requirements, accounting for energy 
     use in determining savings, contracting requirements, and 
     energy efficiency services covered. The Secretary shall 
     report these findings to the Committee on Energy and Commerce 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate, and shall implement 
     identified administrative and regulatory changes to increase 
     program flexibility and effectiveness to the extent that such 
     changes are consistent with statutory authority.

     SEC. 128. CAPITOL COMPLEX.

       (a) Energy Infrastructure.--The Architect of the Capitol, 
     building on the Master Plan Study completed in July 2000, 
     shall commission a study to evaluate the energy 
     infrastructure of the Capital Complex to determine how the 
     infrastructure could be augmented to become more energy 
     efficient, using unconventional and renewable energy 
     resources, in a way that would enable the Complex to have 
     reliable utility service in the event of power fluctuations, 
     shortages, or outages.
       (b) Authorization.--There is authorized to be appropriated 
     to the Architect of the Capitol to carry out this section, 
     not more than $2,000,000 for fiscal years after the enactment 
     of this Act.

                       Subtitle C--State Programs

     SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.

       (a) State Energy Conservation Plans.--Section 362 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6322) is 
     amended by inserting at the end the following new subsection:
       ``(g) The Secretary shall, at least once every 3 years, 
     invite the Governor of each State to review and, if 
     necessary, revise the energy conservation plan of such State 
     submitted under subsection (b) or (e). Such reviews should 
     consider the energy conservation plans of other States within 
     the region, and identify opportunities and actions carried 
     out in pursuit of common energy conservation goals.''.
       (b) State Energy Efficiency Goals.--Section 364 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6324) is 
     amended by inserting ``Each State energy conservation plan 
     with respect to which assistance is made available under this 
     part on or after the date of the enactment of Energy 
     Advancement and Conservation Act of 2001, shall contain a 
     goal, consisting of an improvement of 25 percent or more in 
     the efficiency of use of energy in the State concerned in the 
     calendar year 2010 as compared to the calendar year 1990, and 
     may contain interim goals.'' after ``contain interim 
     goals.''.
       (c) Authorization of Appropriations.--Section 365(f) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
     amended by striking ``for fiscal years 1999 through 2003 such 
     sums as may be necessary'' and inserting ``$75,000,000 for 
     fiscal year 2002, $100,000,000 for fiscal years 2003 and 
     2004, $125,000,000 for fiscal year 2005''.

     SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION PROGRAM FOR 
                   SCHOOLS AND HOSPITALS.

       Section 397 of the Energy Policy and Conservation Act (42 
     U.S.C. 6371f) is amended by striking ``2003'' and inserting 
     ``2010''.

     SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

       Section 422 of the Energy Conservation and Production Act 
     (42 U.S.C. 6872) is amended by striking ``for fiscal years 
     1999 through 2003 such sums as may be necessary'' and 
     inserting ``$273,000,000 for fiscal year 2002, $325,000,000 
     for fiscal year 2003, $400,000,000 for fiscal year 2004, and 
     $500,000,000 for fiscal year 2005''.

     SEC. 134. LIHEAP.

       (a) Authorization of Appropriations.--Section 2602(b) of 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8621(b)) is amended by striking the first sentence and 
     inserting the following: ``There are authorized to be 
     appropriated to carry out the provisions of this title (other 
     than section

[[Page 23554]]

     2607A), $3,400,000,000 for each of fiscal years 2001 through 
     2005.''.
       (b) GAO Study.--The Comptroller General of the United 
     States shall conduct a study to determine--
       (1) the extent to which Low-Income Home Energy Assistance 
     (LIHEAP) and other government energy subsidies paid to 
     consumers discourage or encourage energy conservation and 
     energy efficiency investments when compared to structures of 
     the same physical description and occupancy in compatible 
     geographic locations;
       (2) the extent to which education could increase the 
     conservation of low-income households who opt to receive 
     supplemental income instead of Low-Income Home Energy 
     Assistance funds;
       (3) the benefit in energy efficiency and energy savings 
     that can be achieved through the annual maintenance of 
     heating and cooling appliances in the homes of those 
     receiving Low-Income Home Energy Assistance funds; and
       (4) the loss of energy conservation that results from 
     structural inadequacies in a structure that is unhealthy, not 
     energy efficient, and environmentally unsound and that 
     receives Low-Income Home Energy Assistance funds for 
     weatherization.

     SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.

       (a) Program Establishment and Administration.--
       (1) Establishment.--There is established in the Department 
     of Energy the High Performance Public Buildings Program (in 
     this section referred to as the ``Program'').
       (2) In general.--The Secretary of Energy may, through the 
     Program, make grants--
       (A) to assist units of local government in the production, 
     through construction or renovation of buildings and 
     facilities they own and operate, of high performance public 
     buildings and facilities that are healthful, productive, 
     energy efficient, and environmentally sound;
       (B) to State energy offices to administer the program of 
     assistance to units of local government pursuant to this 
     section; and
       (C) to State energy offices to promote participation by 
     units of local government in the Program.
       (3) Grants to assist units of local government.--Grants 
     under paragraph (2)(A) for new public buildings shall be used 
     to achieve energy efficiency performance that reduces energy 
     use at least 30 percent below that of a public building 
     constructed in compliance with standards prescribed in 
     Chapter 8 of the 2000 International Energy Conservation Code, 
     or a similar State code intended to achieve substantially 
     equivalent results. Grants under paragraph (2)(A) for 
     existing public buildings shall be used to achieve energy 
     efficiency performance that reduces energy use below the 
     public building baseline consumption, assuming a 3-year, 
     weather-normalized average for calculating such baseline. 
     Grants under paragraph (2)(A) shall be made to units of local 
     government that have--
       (A) demonstrated a need for such grants in order to respond 
     appropriately to increasing population or to make major 
     investments in renovation of public buildings; and
       (B) made a commitment to use the grant funds to develop 
     high performance public buildings in accordance with a plan 
     developed and approved pursuant to paragraph (5)(A).
       (4) Other grants.--
       (A) Grants for administration.--Grants under paragraph 
     (2)(B) shall be used to evaluate compliance by units of local 
     government with the requirements of this section, and in 
     addition may be used for--
       (i) distributing information and materials to clearly 
     define and promote the development of high performance public 
     buildings for both new and existing facilities;
       (ii) organizing and conducting programs for local 
     government personnel, architects, engineers, and others to 
     advance the concepts of high performance public buildings;
       (iii) obtaining technical services and assistance in 
     planning and designing high performance public buildings; and
       (iv) collecting and monitoring data and information 
     pertaining to the high performance public building projects.
       (B) Grants to promote participation.--Grants under 
     paragraph (2)(C) may be used for promotional and marketing 
     activities, including facilitating private and public 
     financing, promoting the use of energy service companies, 
     working with public building users, and communities, and 
     coordinating public benefit programs.
       (5) Implementation.--
       (A) Plans.--A grant under paragraph (2)(A) shall be 
     provided only to a unit of local government that, in 
     consultation with its State office of energy, has developed a 
     plan that the State energy office determines to be feasible 
     and appropriate in order to achieve the purposes for which 
     such grants are made.
       (B) Supplementing grant funds.--State energy offices shall 
     encourage qualifying units of local government to supplement 
     their grant funds with funds from other sources in the 
     implementation of their plans.
       (b) Allocation of Funds.--
       (1) In general.--Except as provided in paragraph (3), funds 
     appropriated to carry out this section shall be provided to 
     State energy offices.
       (2) Purposes.--Except as provided in paragraph (3), funds 
     appropriated to carry out this section shall be allocated as 
     follows:
       (A) Seventy percent shall be used to make grants under 
     subsection (a)(2)(A).
       (B) Fifteen percent shall be used to make grants under 
     subsection (a)(2)(B).
       (C) Fifteen percent shall be used to make grants under 
     subsection (a)(2)(C).
       (3) Other funds.--The Secretary of Energy may retain not to 
     exceed $300,000 per year from amounts appropriated under 
     subsection (c) to assist State energy offices in coordinating 
     and implementing the Program. Such funds may be used to 
     develop reference materials to further define the principles 
     and criteria to achieve high performance public buildings.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy to carry out 
     this section such sums as may be necessary for each of the 
     fiscal years 2002 through 2010.
       (d) Report to Congress.--The Secretary of Energy shall 
     conduct a biennial review of State actions implementing this 
     section, and the Secretary shall report to Congress on the 
     results of such reviews. In conducting such reviews, the 
     Secretary shall assess the effectiveness of the calculation 
     procedures used by the States in establishing eligibility of 
     units of local government for funding under this section, and 
     may assess other aspects of the State program to determine 
     whether they have been effectively implemented.
       (e) Definitions.--For purposes of this section:
       (1) High performance public building.--The term ``high 
     performance public building'' means a public building which, 
     in its design, construction, operation, and maintenance, 
     maximizes use of unconventional and renewable energy 
     resources and energy efficiency 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.
       (2) Renewable energy.--The term ``renewable energy'' means 
     energy produced by solar, wind, geothermal, hydroelectric, or 
     biomass power.
       (3) Unconventional and renewable energy resources.--The 
     term ``unconventional and renewable energy resources'' means 
     renewable energy, hydrogen, fuel cells, cogeneration, 
     combined heat and power, heat recovery (including by use of a 
     Stirling heat engine), and distributed generation.

          Subtitle D--Energy Efficiency for Consumer Products

     SEC. 141. ENERGY STAR PROGRAM.

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

     ``SEC. 324A. ENERGY STAR PROGRAM.

       ``(a) In General.--There is established at the Department 
     of Energy and the Environmental Protection Agency a program 
     to identify and promote energy-efficient products and 
     buildings in order to reduce energy consumption, improve 
     energy security, and reduce pollution through labeling of 
     products and buildings that meet the highest energy 
     efficiency standards. Responsibilities under the program 
     shall be divided between the Department of Energy and the 
     Environmental Protection Agency consistent with the terms of 
     agreements between the two agencies. The Administrator and 
     the Secretary shall--
       ``(1) promote Energy Star compliant technologies as the 
     preferred technologies in the marketplace for achieving 
     energy efficiency and to reduce pollution;
       ``(2) work to enhance public awareness of the Energy Star 
     label; and
       ``(3) preserve the integrity of the Energy Star label.

     For the purposes of carrying out this section, there is 
     authorized to be appropriated for fiscal years 2002 through 
     2006 such sums as may be necessary, to remain available until 
     expended.
       ``(b) Study of Certain Products and Buildings.--Within 180 
     days after the date of the enactment of this section, the 
     Secretary and the Administrator, consistent with the terms of 
     agreements between the two agencies (including existing 
     agreements with respect to which agency shall handle a 
     particular product or building), shall determine whether the 
     Energy Star label should be extended to additional products 
     and buildings, including the following:
       ``(1) Air cleaners.
       ``(2) Ceiling fans.
       ``(3) Light commercial heating and cooling products.
       ``(4) Reach-in refrigerators and freezers.
       ``(5) Telephony.
       ``(6) Vending machines.
       ``(7) Residential water heaters.
       ``(8) Refrigerated beverage merchandisers.
       ``(9) Commercial ice makers.
       ``(10) School buildings.
       ``(11) Retail buildings.
       ``(12) Health care facilities.
       ``(13) Homes.
       ``(14) Hotels and other commercial lodging facilities.

[[Page 23555]]

       ``(15) Restaurants and other food service facilities.
       ``(16) Solar water heaters.
       ``(17) Building-integrated photovoltaic systems.
       ``(18) Reflective pigment coatings.
       ``(19) Windows.
       ``(20) Boilers.
       ``(21) Devices to extend the life of motor vehicle oil.
       ``(c) Cool Roofing.--In determining whether the Energy Star 
     label should be extended to roofing products, the Secretary 
     and the Administrator shall work with the roofing products 
     industry to determine the appropriate solar reflective index 
     of roofing products.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy and Conservation Act is amended by 
     inserting after the item relating to section 324 the 
     following new item:

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

     SEC. 141A. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY 
                   PROGRAM.

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

     ``SEC. 324B. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY 
                   PROGRAM.

       ``(a) Program.--There is established at the Environmental 
     Protection Agency and the Department of Energy a government-
     industry partnership program to identify and promote the 
     purchase of renewable and alternative energy products, to 
     recognize companies that purchase renewable and alternative 
     energy products for the environmental and energy security 
     benefits of such purchases, and to educate consumers about 
     the environmental and energy security benefits of renewable 
     and alternative energy. Responsibilities under the program 
     shall be divided between the Environmental Protection Agency 
     and the Department of Energy consistent with the terms of 
     agreements between the two agencies. The Administrator of the 
     Environmental Protection Agency and the Secretary of Energy--
       ``(1) establish an Energy Sun label for renewable and 
     alternative energy products and technologies that the 
     Administrator or the Secretary (consistent with the terms of 
     agreements between the two agencies regarding responsibility 
     for specific product categories) determine to have 
     substantial environmental and energy security benefits and 
     commercial marketability.
       ``(2) establish an Energy Sun Company program to recognize 
     private companies that draw a substantial portion of their 
     energy from renewable and alternative sources that provide 
     substantial environmental and energy security benefits, as 
     determined by the Administrator or the Secretary.
       ``(3) promote Energy Sun compliant products and 
     technologies as the preferred products and technologies in 
     the marketplace for reducing pollution and achieving energy 
     security; and
       ``(4) work to enhance public awareness and preserve the 
     integrity of the Energy Sun label.

     For the purposes of carrying out this section, there is 
     authorized to be appropriated $10,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(b) Study of Certain Products, Technologies, and 
     Buildings.--Within 18 months after the enactment of this 
     section, the Administrator and the Secretary, consistent with 
     the terms of agreements between the two agencies, shall 
     conduct a study to determine whether the Energy Sun label 
     should be authorized for products, technologies, and 
     buildings in the following categories:
       ``(1) Passive solar, solar thermal, concentrating solar 
     energy, solar water heating, and related solar products and 
     building technologies.
       ``(2) Solar photovoltaics and other solar electric power 
     generation technologies.
       ``(3) Wind.
       ``(4) Geothermal.
       ``(5) Biomass.
       ``(6) Distributed energy (including, but not limited to, 
     microturbines, combined heat and power, fuel cells, and 
     stirling heat engines).
       ``(7) Green power or other renewables and alternative based 
     electric power products (including green tag credit programs) 
     sold to retail consumers of electricity.
       ``(8) Homes.
       ``(9) School buildings.
       ``(10) Retail buildings.
       ``(11) Health care facilities.
       ``(12) Hotels and other commercial lodging facilities.
       ``(13) Restaurants and other food service facilities.
       ``(14) Rest area facilities along interstate highways.
       ``(15) Sports stadia, arenas, and concert facilities.
       ``(16) Any other product, technology or building category, 
     the accelerated recognition of which the Administrator or the 
     Secretary determines to be necessary or appropriate for the 
     achievement of the purposes of this section.

     Nothing in this subsection shall be construed to limit the 
     discretion of the Administrator or the Secretary under 
     subsection (a)(1) to include in the Energy Sun program 
     additional products, technologies, and buildings not listed 
     in this subsection. Participation by private-sector entities 
     in programs or studies authorized by this section shall be 
     (A) voluntary, and (B) by permission of the Administrator or 
     Secretary, on terms and conditions the Administrator or the 
     Secretary (consistent with agreements between the agencies) 
     deems necessary or appropriate to carry out the purposes and 
     requirements of this section.
       ``(c) Definition.--For the purposes of this section, the 
     term `renewable and alternative energy' shall have the same 
     meaning as the term `unconventional and renewable energy 
     resources' in Section 551 of the National Energy Conservation 
     Policy Act (42 U.S.C. 8259).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy and Conservation Act is amended by 
     inserting after the item relating to section 324A the 
     following new item:

``Sec. 324B. Energy Sun renewable and alternative energy program.''.

     SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.

       (a) Study.--Section 324(e) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(e)) is amended as follows:
       (1) By inserting ``(1)'' before ``The Secretary, in 
     consultation''.
       (2) By redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively.
       (3) By adding the following new paragraph at the end:
       ``(2) The Secretary shall make recommendations to the 
     Commission within 180 days of the date of the enactment of 
     this paragraph regarding labeling of consumer products that 
     are not covered products in accordance with this section, 
     where such labeling is likely to assist consumers in making 
     purchasing decisions and is technologically and economically 
     feasible.''.
       (b) Noncovered Products.--Section 324(a)(2) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is amended 
     by adding the following at the end:
       ``(F) Not later than 1 year after the date of the enactment 
     of this subparagraph, the Commission shall initiate a 
     rulemaking to prescribe labeling rules under this section 
     applicable to consumer products that are not covered products 
     if it determines that labeling of such products is likely to 
     assist consumers in making purchasing decisions and is 
     technologically and economically feasible.
       ``(G) Not later than 3 months after the date of the 
     enactment of this subparagraph, the Commission shall initiate 
     a rulemaking to consider the effectiveness of the current 
     consumer products labeling program in assisting consumers in 
     making purchasing decisions and improving energy efficiency 
     and to consider changes to the label that would improve the 
     effectiveness of the label. Such rulemaking shall be 
     completed within 15 months of the date of the enactment of 
     this subparagraph.''.

     SEC. 143. APPLIANCE STANDARDS.

       (a) Standards for Household Appliances in Standby Mode.--
     (1) Section 325 of the Energy Policy and Conservation Act (42 
     U.S.C. 6295) is amended by adding at the end the following:
       ``(u) Standby Mode Electric Energy Consumption by Household 
     Appliances.--(1) In this subsection:
       ``(A) The term `household appliance' means any device that 
     uses household electric current, operates in a standby mode, 
     and is identified by the Secretary as a major consumer of 
     electricity in standby mode, except digital televisions, 
     digital set top boxes, digital video recorders, any product 
     recognized under the Energy Star program, any product that 
     was on the date of the enactment of this Act subject to an 
     energy conservation standard under this section, and any 
     product regarding which the Secretary finds that the expected 
     additional cost to the consumer of purchasing such product as 
     a result of complying with a standard established under this 
     section is not economically justified within the meaning of 
     subsection (o).
       ``(B) The term `standby mode' means a mode in which a 
     household appliance consumes the least amount of electric 
     energy that the household appliance is capable of consuming 
     without being completely switched off (provided that, the 
     amount of electric energy consumed in such mode is 
     substantially less than the amount the household appliance 
     would consume in its normal operational mode).
       ``(C) The term `major consumer of electricity in standby 
     mode' means a product for which a standard prescribed under 
     this section would result in substantial energy savings as 
     compared to energy savings achieved or expected to be 
     achieved by standards established by the Secretary under 
     subsections (o) and (p) of this section for products that 
     were, at the time of the enactment of this subsection, 
     covered products under this section.
       ``(2)(A) Except as provided in subparagraph (B), a 
     household appliance that is manufactured in, or imported for 
     sale in, the United States on or after the date that is 2 
     years after the date of the enactment of this subsection 
     shall not consume in standby mode more than 1 watt.
       ``(B) In the case of analog televisions, the Secretary 
     shall prescribe, on or after the

[[Page 23556]]

     date that is 2 years after the date of the enactment of this 
     subsection, in accordance with subsections (o) and (p) of 
     section 325, an energy conservation standard that is 
     technologically feasible and economically justified under 
     section 325(o)(2)(A) (in lieu of the 1 watt standard under 
     subparagraph (A)).
       ``(3)(A) A manufacturer or importer of a household 
     appliance may submit to the Secretary an application for an 
     exemption of the household appliance from the standard under 
     paragraph (2).
       ``(B) The Secretary shall grant an exemption for a 
     household appliance for which an application is made under 
     subparagraph (A) if the applicant provides evidence showing 
     that, and the Secretary determines that--
       ``(i) it is not technically feasible to modify the 
     household appliance to enable the household appliance to meet 
     the standard;
       ``(ii) the standard is incompatible with an energy 
     efficiency standard applicable to the household appliance 
     under another subsection; or
       ``(iii) the cost of electricity that a typical consumer 
     would save in operating the household appliance meeting the 
     standard would not equal the increase in the price of the 
     household appliance that would be attributable to the 
     modifications that would be necessary to enable the household 
     appliance to meet the standard by the earlier of--
       ``(I) the date that is 7 years after the date of purchase 
     of the household appliance; or
       ``(II) the end of the useful life of the household 
     appliance.
       ``(C) If the Secretary determines that it is not 
     technically feasible to modify a household appliance to meet 
     the standard under paragraph (2), the Secretary shall 
     establish a different standard for the household appliance in 
     accordance with the criteria under subsection (l).
       ``(4)(A) Not later than 1 year after the date of the 
     enactment of this subsection, the Secretary shall establish a 
     test procedure for determining the amount of consumption of 
     power by a household appliance operating in standby mode.
       ``(B) In establishing the test procedure, the Secretary 
     shall consider--
       ``(i) international test procedures under development;
       ``(ii) test procedures used in connection with the Energy 
     Star program; and
       ``(iii) test procedures used for measuring power 
     consumption in standby mode in other countries.
       ``(5) Further reduction of standby power consumption.--The 
     Secretary shall provide technical assistance to manufacturers 
     in achieving further reductions in standby mode electric 
     energy consumption by household appliances.
       ``(v) Standby Mode Electric Energy Consumption by Digital 
     Televisions, Digital Set Top Boxes, and Digital Video 
     Recorders.--The Secretary shall initiate on January 1, 2007 a 
     rulemaking to prescribe, in accordance with subsections (o) 
     and (p), an energy conservation standard of standby mode 
     electric energy consumption by digital television sets, 
     digital set top boxes, and digital video recorders. The 
     Secretary shall issue a final rule prescribing such standards 
     not later than 18 months thereafter. In determining whether a 
     standard under this section is technologically feasible and 
     economically justified under section 325(o)(2)(A), the 
     Secretary shall consider the potential effects on market 
     penetration by digital products covered under this section, 
     and shall consider any recommendations by the FCC regarding 
     such effects.''.
       (2) Section 325(o)(3) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6295(n)(1)) is amended by inserting at the end 
     of the paragraph the following: ``Notwithstanding any 
     provision of this part, the Secretary shall not amend a 
     standard established under subsection (u) or (v) of this 
     section.''.
       (b) Standards for Noncovered Products.--Section 325(m) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6295(m)) is 
     amended as follows:
       (1) Inserting ``(1)'' before ``After''.
       (2) Inserting the following at the end:
       ``(2) Not later than 1 year after the date of the enactment 
     of the Energy Advancement and Conservation Act of 2001, the 
     Secretary shall conduct a rulemaking to determine whether 
     consumer products not classified as a covered product under 
     section 322(a)(1) through (18) meet the criteria of section 
     322(b)(1) and is a major consumer of electricity. If the 
     Secretary finds that a consumer product not classified as a 
     covered product meets the criteria of section 322(b)(1), he 
     shall prescribe, in accordance with subsections (o) and (p), 
     an energy conservation standard for such consumer product, if 
     such standard is reasonably probable to be technologically 
     feasible and economically justified within the meaning of 
     subsection (o)(2)(A). As used in this paragraph, the term 
     `major consumer of electricity' means a product for which a 
     standard prescribed under this section would result in 
     substantial aggregate energy savings as compared to energy 
     savings achieved or expected to be achieved by standards 
     established by the Secretary under paragraphs (o) and (p) of 
     this section for products that were, at the time of the 
     enactment of this paragraph, covered products under this 
     section.''.
       (c) Consumer Education on Energy Efficiency Benefits of Air 
     Conditioning, Heating and Ventilation Maintenance.--Section 
     337 of the Energy Policy and Conservation Act (42 U.S.C. 
     6307) is amended by adding the following new subsection after 
     subsection (b):
       ``(c) HVAC Maintenance.--For the purpose of ensuring that 
     installed air conditioning and heating systems operate at 
     their maximum rated efficiency levels, the Secretary shall, 
     within 180 days of the date of the enactment of this 
     subsection, develop and implement a public education campaign 
     to educate homeowners and small business owners concerning 
     the energy savings resulting from regularly scheduled 
     maintenance of air conditioning, heating, and ventilating 
     systems. In developing and implementing this campaign, the 
     Secretary shall consider support by the Department of public 
     education programs sponsored by trade and professional and 
     energy efficiency organizations. The public service 
     information shall provide sufficient information to allow 
     consumers to make informed choices from among professional, 
     licensed (where State or local licensing is required) 
     contractors. There are authorized to be appropriated to carry 
     out this subsection $5,000,000 for fiscal years 2002 and 2003 
     in addition to amounts otherwise appropriated in this 
     part.''.
       (d) Efficiency Standards for Furnace Fans, Ceiling Fans, 
     and Cold Drink Vending Machines.--
       (1) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) is amended by adding the 
     following at the end thereof:
       ``(32) The term `residential furnace fan' means an electric 
     fan installed as part of a furnace for purposes of 
     circulating air through the system air filters, the heat 
     exchangers or heating elements of the furnace, and the duct 
     work.
       ``(33) The terms `residential central air conditioner fan' 
     and `heat pump circulation fan' mean an electric fan 
     installed as part of a central air conditioner or heat pump 
     for purposes of circulating air through the system air 
     filters, the heat exchangers of the air conditioner or heat 
     pump, and the duct work.
       ``(34) The term `suspended ceiling fan' means a fan 
     intended to be mounted to a ceiling outlet box, ceiling 
     building structure, or to a vertical rod suspended from the 
     ceiling, and which as blades which rotate below the ceiling 
     and consists of an electric motor, fan blades (which rotate 
     in a direction parallel to the floor), an optional lighting 
     kit, and one or more electrical controls (integral or remote) 
     governing fan speed and lighting operation.
       ``(35) The term `refrigerated bottled or canned beverage 
     vending machine' means a machine that cools bottled or canned 
     beverages and dispenses them upon payment.''.
       (2) Testing Requirements.--Section 323 of the Energy Policy 
     and Conservation Act (42 U.S.C. 6293) is amended by adding 
     the following at the end thereof:
       ``(f) Additional Consumer Products.--The Secretary shall 
     within 18 months after the date of the enactment of this 
     subsection prescribe testing requirements for residential 
     furnace fans, residential central air conditioner fans, heat 
     pump circulation fans, suspended ceiling fans, and 
     refrigerated bottled or canned beverage vending machines. 
     Such testing requirements shall be based on existing test 
     procedures used in industry to the extent practical and 
     reasonable. In the case of residential furnace fans, 
     residential central air conditioner fans, heat pump 
     circulation fans, and suspended ceiling fans, such test 
     procedures shall include efficiency at both maximum output 
     and at an output no more than 50 percent of the maximum 
     output.''.
       (3) Standards for Additional Consumer Products.--Section 
     325 of the Energy Policy and Conservation Act (42 U.S.C. 
     6295) is amended by adding the following at the end thereof:
       ``(w) Residential Furnace Fans, Central Air and Heat Pump 
     Circulation Fans, Suspended Ceiling Fans, and Vending 
     Machines.--(1) The Secretary shall, within 18 months after 
     the date of the enactment of this subsection, assess the 
     current and projected future market for residential furnace 
     fans, residential central air conditioner and heat pump 
     circulation fans, suspended ceiling fans, and refrigerated 
     bottled or canned beverage vending machines. This assessment 
     shall include an examination of the types of products sold, 
     the number of products in use, annual sales of these 
     products, energy used by these products sold, the number of 
     products in use, annual sales of these products, energy used 
     by these products, estimates of the potential energy savings 
     from specific technical improvements to these products, and 
     an examination of the cost-effectiveness of these 
     improvements. Prior to the end of this time period, the 
     Secretary shall hold an initial scoping workshop to discuss 
     and receive input to plans for developing minimum efficiency 
     standards for these products.
       ``(2) The Secretary shall within 24 months after the date 
     on which testing requirements are prescribed by the Secretary 
     pursuant to section 323(f), prescribe, by rule, energy 
     conservation standards for residential furnace fans, 
     residential central air conditioner and heat pump circulation 
     fans, suspended ceiling fans, and refrigerated bottled or 
     canned

[[Page 23557]]

     beverage vending machines. In establishing these standards, 
     the Secretary shall use the criteria and procedures contained 
     in subsections (l) and (m). Any standard prescribed under 
     this section shall apply to products manufactured 36 months 
     after the date such rule is published.''.
       (4) Labeling.--Section 324(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)) is amended by adding the 
     following at the end thereof:
       ``(5) The Secretary shall within 6 months after the date on 
     which energy conservation standards are prescribed by the 
     Secretary for covered products referred to in section 325(w), 
     prescribe, by rule, labeling requirements for such products. 
     These requirements shall take effect on the same date as the 
     standards prescribed pursuant to section 325(w).''.
       (5) Covered Products.--Section 322(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6292(a)) is amended by 
     redesignating paragraph (19) as paragraph (20) and by 
     inserting after paragraph (18) the following:
       ``(19) Beginning on the effective date for standards 
     established pursuant to subsection (v) of section 325, each 
     product referred to in such subsection (v).''.

                 Subtitle E--Energy Efficient Vehicles

     SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.

       (a) In General.--Notwithstanding section 102(a)(1) of title 
     23, United States Code, a State may, for the purpose of 
     promoting energy conservation, permit a vehicle with fewer 
     than 2 occupants to operate in high occupancy vehicle lanes 
     if such vehicle is a hybrid vehicle or is fueled by an 
     alternative fuel.
       (b) Hybrid Vehicle Defined.--In this section, the term 
     ``hybrid vehicle'' means a motor vehicle--
       (1) which draws propulsion energy from onboard sources of 
     stored energy which are both--
       (A) an internal combustion or heat engine using combustible 
     fuel; and
       (B) a rechargeable energy storage system;
       (2) which, in the case of a passenger automobile or light 
     truck--
       (A) for 2002 and later model vehicles, has received a 
     certificate of conformity under section 206 of the Clean Air 
     Act (42 U.S.C. 7525) and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act (42 U.S.C. 7583(e)(2)) 
     for that make and model year; and
       (B) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets the Tier II emission 
     level established in regulations prescribed by the 
     Administrator of the Environmental Protection Agency under 
     section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for 
     that make and model year vehicle; and
       (3) which is made by a manufacturer.
       (c) Alternative Fuel Defined.--In this section, the term 
     ``alternative fuel'' has the meaning such term has under 
     section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 
     13211(2)).

     SEC. 152. RAILROAD EFFICIENCY.

       (a) Locomotive Technology Demonstration.--The Secretary of 
     Energy shall establish a public-private research partnership 
     with railroad carriers, locomotive manufacturers, and a 
     world-class research and test center dedicated to the 
     advancement of railroad technology, efficiency, and safety 
     that is owned by the Federal Railroad Administration and 
     operated in the private sector, for the development and 
     demonstration of locomotive technologies that increase fuel 
     economy and reduce emissions.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy $25,000,000 for 
     fiscal year 2002, $30,000,000 for fiscal year 2003, and 
     $35,000,000 for fiscal year 2004 for carrying out this 
     section.

     SEC. 153. BIODIESEL FUEL USE CREDITS.

       Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 
     13220(c)) is amended--
       (1) by striking ``Not'' in the subsection heading; and
       (2) by striking ``not''.

     SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.

       Within 90 days after the enactment of this section, the 
     Administrator of the Environmental Protection Agency is 
     directed to commence a review of the Agency's policies 
     regarding the use of mobile to stationary source trading of 
     emission credits under the Clean Air Act to determine whether 
     such trading can provide both nonattainment and attainment 
     areas with additional flexibility in achieving and 
     maintaining healthy air quality and increasing use of 
     alternative fuel and advanced technology vehicles, thereby 
     reducing United States dependence on foreign oil.

                      Subtitle F--Other Provisions

     SEC. 161. 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.--No later than 18 months after the 
     date of the 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 the manner specified in this 
     section 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. 162. ADVANCED IDLE ELIMINATION SYSTEMS.

       (a) Definitions.--
       (1) Advanced idle elimination system.--The term ``advanced 
     idle elimination system'' means a device or system of devices 
     that is installed at a truck stop or other location (for 
     example, a loading, unloading, or transfer facility) where 
     vehicles (such as trucks, trains, buses, boats, automobiles, 
     and recreational vehicles) are parked and that is designed to 
     provide to the vehicle the services (such as heat, air 
     conditioning, and electricity) that would otherwise require 
     the operation of the auxiliary or drive train engine or both 
     while the vehicle is stationary and parked.
       (2) Extended idling.--The term ``extended idling'' means 
     the idling of a motor vehicle for a period greater than 60 
     minutes.
       (b) Recognition of Benefits of Advanced Idle Elimination 
     Systems.--Within 90 days after the date of the enactment of 
     this subsection, the Administrator of the Environmental 
     Protection Agency is directed to commence a review of the 
     Agency's mobile source air emissions models used under the 
     Clean Air Act to determine whether such models accurately 
     reflect the emissions resulting from extended idling of 
     heavy-duty trucks and other vehicles and engines, and shall 
     update those models as the Administrator deems appropriate. 
     Additionally, within 90-days after the date of the enactment 
     of this subsection, the Administrator shall commence a review 
     as to the appropriate emissions reductions credit that should 
     be allotted under the Clean Air Act for the use of advanced 
     idle elimination systems, and whether such credits should be 
     subject to an emissions trading system, and shall revise 
     Agency regulations and guidance as the Administrator deems 
     appropriate.

     SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BYPASS 
                   FILTRATION TECHNOLOGY.

       (a) Study.--The Secretary of Energy and the Administrator 
     of the Environmental Protection Agency shall jointly conduct 
     a study of oil bypass filtration technology in motor vehicle 
     engines. The study shall analyze and quantify the potential 
     benefits of such technology in terms of reduced demand for 
     oil and the potential environmental benefits of the 
     technology in terms of reduced waste and air pollution. The 
     Secretary and the Administrator shall also examine the 
     feasibility of using such technology in the Federal motor 
     vehicle fleet.
       (b) Report.--Not later than 6 months after the enactment of 
     this Act, the Secretary of Energy and the Administrator of 
     the Environmental Protection Agency shall jointly submit a 
     report containing the results of the study conducted under 
     subsection (a) to the Committee on Energy and Commerce of the 
     United States House of Representatives and to the Committee 
     on Energy and Natural Resources of the United States Senate.

     SEC. 164. GAS FLARE STUDY.

       (a) Study.--The Secretary of Energy shall conduct a study 
     of the economic feasibility of installing small cogeneration 
     facilities utilizing excess gas flares at petrochemical 
     facilities to provide reduced electricity costs to customers 
     living within 3 miles of the petrochemical facilities. The 
     Secretary shall solicit public comment to assist in preparing 
     the report required under subsection (b).
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Secretary of Energy shall transmit 
     a report to the Congress on the results of the study 
     conducted under subsection (a).

     SEC. 165. TELECOMMUTING STUDY.

       (a) Study Required.--The Secretary, in consultation with 
     Commission, and the NTIA, shall conduct a study of the energy 
     conservation implications of the widespread adoption of 
     telecommuting in the United States.
       (b) Required Subjects of Study.--The study required by 
     subsection (a) shall analyze the following subjects in 
     relation to the energy saving potential of telecommuting:
       (1) Reductions of energy use and energy costs in commuting 
     and regular office heating, cooling, and other operations.
       (2) Other energy reductions accomplished by telecommuting.
       (3) Existing regulatory barriers that hamper telecommuting, 
     including barriers to broadband telecommunications services 
     deployment.
       (4) Collateral benefits to the environment, family life, 
     and other values.
       (c) Report Required.--The Secretary shall submit to the 
     President and the Congress a report on the study required by 
     this section

[[Page 23558]]

     not later than 6 months after the date of the enactment of 
     this Act. Such report shall include a description of the 
     results of the analysis of each of the subject described in 
     subsection (b).
       (d) Definitions.--As used in this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (2) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (3) NTIA.--The term ``NTIA'' means the National 
     Telecommunications and Information Administration of the 
     Department of Commerce.
       (4) Telecommuting.--The term ``telecommuting'' means the 
     performance of work functions using communications 
     technologies, thereby eliminating or substantially reducing 
     the need to commute to and from traditional worksites.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

     SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NONPASSENGER 
                   AUTOMOBILES.

       Section 32902(a) of title 49, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``Nonpassenger 
     Automobiles.--''; and
       (2) by adding at the end the following:
       ``(2) The Secretary shall prescribe under paragraph (1) 
     average fuel economy standards for automobiles (except 
     passenger automobiles) manufactured in model years 2004 
     through 2010 that are calculated to ensure that the aggregate 
     amount of gasoline projected to be used in those model years 
     by automobiles to which the standards apply is at least 5 
     billion gallons less than the aggregate amount of gasoline 
     that would be used in those model years by such automobiles 
     if they achieved only the fuel economy required under the 
     average fuel economy standard that applies under this 
     subsection to automobiles (except passenger automobiles) 
     manufactured in model year 2002.''.

     SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT AVERAGE FUEL 
                   ECONOMY STANDARDS FOR NONPASSENGER AUTOMOBILES.

       (a) In General.--The Secretary of Transportation shall, in 
     prescribing average fuel economy standards under section 
     32902(a) of title 49, United States Code, for automobiles 
     (except passenger automobiles) manufactured in model year 
     2004, consider the potential benefits of--
       (1) establishing a weight-based system for automobiles, 
     that is based on the inertia weight, curb weight, gross 
     vehicle weight rating, or another appropriate measure of such 
     automobiles; and
       (2) prescribing different fuel economy standards for 
     automobiles that are subject to the weight-based system.
       (b) Specific Considerations.--In implementing this section 
     the Secretary--
       (1) shall consider any recommendations made in the National 
     Academy of Sciences study completed pursuant to the 
     Department of Transportation and Related Agencies 
     Appropriations Act, 2000 (Public Law 106-346; 114 Stat. 2763 
     et seq.); and
       (2) shall evaluate the merits of any weight-based system in 
     terms of motor vehicle safety, energy conservation, and 
     competitiveness of and employment in the United States 
     automotive sector, and if a weight-based system is 
     established by the Secretary a manufacturer may trade credits 
     between or among the automobiles (except passenger 
     automobiles) manufactured by the manufacturer.

     SEC. 203. DUAL FUELED AUTOMOBILES.

       (a) Purposes.--The purposes of this section are--
       (1) to extend the manufacturing incentives for dual fueled 
     automobiles, as set forth in subsections (b) and (d) of 
     section 32905 of title 49, United States Code, through the 
     2008 model year; and
       (2) to similarly extend the limitation on the maximum 
     average fuel economy increase for such automobiles, as set 
     forth in subsection (a)(1) of section 32906 of title 49, 
     United States Code.
       (b) Amendments.--
       (1) Manufacturing incentives.--Section 32905 of title 49, 
     United States Code, is amended as follows:
       (A) Subsections (b) and (d) are each amended by striking 
     ``model years 1993-2004'' and inserting ``model years 1993-
     2008''.
       (B) Subsection (f) is amended by striking ``Not later than 
     December 31, 2001, the Secretary'' and inserting ``Not later 
     than December 31, 2005, the Secretary''.
       (C) Subsection (f)(1) is amended by striking ``model year 
     2004'' and inserting ``model year 2008''.
       (D) Subsection (g) is amended by striking ``Not later than 
     September 30, 2000'' and inserting ``Not later than September 
     30, 2004''.
       (2) Maximum fuel economy increase.--Subsection (a)(1) of 
     section 32906 of title 49, United States Code, is amended as 
     follows:
       (A) Subparagraph (A) is amended by striking ``the model 
     years 1993-2004'' and inserting ``model years 1993-2008''.
       (B) Subparagraph (B) is amended by striking ``the model 
     years 2005-2008'' and inserting ``model years 2009-2012''.

     SEC. 204. FUEL ECONOMY OF THE FEDERAL FLEET OF AUTOMOBILES.

       Section 32917 of title 49, United States Code, is amended 
     to read as follows:

     ``Sec. 32917. Standards for executive agency automobiles

       ``(a) Baseline Average Fuel Economy.--The head of each 
     executive agency shall determine, for all automobiles in the 
     agency's fleet of automobiles that were leased or bought as a 
     new vehicle in fiscal year 1999, the average fuel economy for 
     such automobiles. For the purposes of this section, the 
     average fuel economy so determined shall be the baseline 
     average fuel economy for the agency's fleet of automobiles.
       ``(b) Increase of Average Fuel Economy.--The head of an 
     executive agency shall manage the procurement of automobiles 
     for that agency in such a manner that--
       ``(1) not later than September 30, 2003, the average fuel 
     economy of the new automobiles in the agency's fleet of 
     automobiles is not less than 1 mile per gallon higher than 
     the baseline average fuel economy determined under subsection 
     (a) for that fleet; and
       ``(2) not later than September 30, 2005, the average fuel 
     economy of the new automobiles in the agency's fleet of 
     automobiles is not less than 3 miles per gallon higher than 
     the baseline average fuel economy determined under subsection 
     (a) for that fleet.
       ``(c) Calculation of Average Fuel Economy.--Average fuel 
     economy shall be calculated for the purposes of this section 
     in accordance with guidance which the Secretary of 
     Transportation shall prescribe for the implementation of this 
     section.
       ``(d) Definitions.--In this section:
       ``(1) The term `automobile' does not include any vehicle 
     designed for combat-related missions, law enforcement work, 
     or emergency rescue work.
       ``(2) The term `executive agency' has the meaning given 
     that term in section 105 of title 5.
       ``(3) The term `new automobile', with respect to the fleet 
     of automobiles of an executive agency, means an automobile 
     that is leased for at least 60 consecutive days or bought, by 
     or for the agency, after September 30, 1999.''.

     SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.

       (a) In General.--Section 303(b)(1) of the Energy Policy Act 
     of 1992 is amended by adding the following at the end: ``Of 
     the total number of vehicles acquired by a Federal fleet in 
     fiscal years 2004 and 2005, at least 5 percent of the 
     vehicles in addition to those covered by the preceding 
     sentence shall be alternative fueled vehicles or hybrid 
     vehicles and in fiscal year 2006 and thereafter at least 10 
     percent of the vehicles in addition to those covered by the 
     preceding sentence shall be alternative fueled vehicles or 
     hybrid vehicles.''.
       (b) Definition.--Section 301 of such Act is amended by 
     striking ``and'' at the end of paragraph (13), by striking 
     the period at the end of paragraph (14) and inserting ``; 
     and'' and by adding at the end the following:
       ``(15) The term `hybrid vehicle' means a motor vehicle 
     which draws propulsion energy from onboard sources of stored 
     energy which are both--
       ``(A) an internal combustion or heat engine using 
     combustible fuel; and
       ``(B) a rechargeable energy storage system.''.

     SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTERNATIVE FUELS.

       (a) In General.--Title III of the Energy Policy Act of 1992 
     (42 U.S.C. 13212 et seq.) is amended as follows:
       (1) By adding at the end thereof the following:

     ``SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE 
                   FEDERAL GOVERNMENT FOR LIGHT-DUTY MOTOR 
                   VEHICLES.

       ``(a) Purposes.--The purposes of this section are to 
     complement and supplement the requirements of section 303 of 
     this Act that Federal fleets, as that term is defined in 
     section 303(b)(3), acquire in the aggregate a minimum 
     percentage of alternative fuel vehicles, to encourage the 
     manufacture and sale or lease of such vehicles nationwide, 
     and to achieve, in the aggregate, a reduction in the amount 
     of the petroleum-based fuels (other than the alternative 
     fuels defined in this title) used by new light-duty motor 
     vehicles acquired by the Federal Government in model years 
     2004 through 2010 and thereafter.
       ``(b) Implementation.--In furtherance of such purposes, 
     such Federal fleets in the aggregate shall reduce the 
     purchase of petroleum-based nonalternative fuels for such 
     fleets beginning October 1, 2003, through September 30, 2009, 
     from the amount purchased for such fleets over a comparable 
     period since enactment of this Act, as determined by the 
     Secretary, through the annual purchase, in accordance with 
     section 304, and the use of alternative fuels for the light-
     duty motor vehicles of such Federal fleets, so as to achieve 
     levels which reflect total reliance by such fleets on the 
     consumptive use of alternative fuels consistent with the 
     provisions of section 303(b) of this Act. The Secretary 
     shall, within 120 days after the enactment of this section, 
     promulgate, in consultation with the Administrator of the 
     General Services Administration and the Director of the 
     Office of Management and Budget and such other heads of 
     entities referenced in section 303 within the executive 
     branch as such Director may designate, standards for the full 
     and prompt implementation of this section by such entities. 
     The Secretary shall monitor compliance with this section and

[[Page 23559]]

     such standards by all such fleets and shall report annually 
     to the Congress, based on reports by the heads of such 
     fleets, on the extent to which the requirements of this 
     section and such standards are being achieved. The report 
     shall include information on annual reductions achieved of 
     petroleum-based fuels and the problems, if any, encountered 
     in acquiring alternative fuels and in requiring their use.''.
       (2) By amending section 304(b) of such Act to read as 
     follows:
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary or, as 
     appropriate, the head of each Federal fleet subject to the 
     provisions of this section and section 313 of this Act, such 
     sums as may be necessary to achieve the purposes of section 
     313(a) and the provisions of this section. Such sums shall 
     remain available until expended.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by adding at the end of the items 
     relating to title III the following:

``Sec. 313. Conservation of petroleum-based fuels by the Federal 
              Government for light-duty motor vehicles.''.

     SEC. 207. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF 
                   FUEL FOR AUTOMOBILES.

       (a) In General.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of Transportation 
     shall enter into an arrangement with the National Academy of 
     Sciences under which the Academy shall study the feasibility 
     and effects of reducing by model year 2010, by a significant 
     percentage, the use of fuel for automobiles.
       (b) Subjects of Study.--The study under this section shall 
     include--
       (1) examination of, and recommendation of alternatives to, 
     the policy under current Federal law of establishing average 
     fuel economy standards for automobiles and requiring each 
     automobile manufacturer to comply with average fuel economy 
     standards that apply to the automobiles it manufactures;
       (2) examination of how automobile manufacturers could 
     contribute toward achieving the reduction referred to in 
     subsection (a);
       (3) examination of the potential of fuel cell technology in 
     motor vehicles in order to determine the extent to which such 
     technology may contribute to achieving the reduction referred 
     to in subsection (a); and
       (4) examination of the effects of the reduction referred to 
     in subsection (a) on--
       (A) gasoline supplies;
       (B) the automobile industry, including sales of automobiles 
     manufactured in the United States;
       (C) motor vehicle safety; and
       (D) air quality.
       (c) Report.--The Secretary shall require the National 
     Academy of Sciences to submit to the Secretary and the 
     Congress a report on the findings, conclusion, and 
     recommendations of the study under this section by not later 
     than 1 year after the date of the enactment of this Act.

                       TITLE III--NUCLEAR ENERGY

     SEC. 301. LICENSE PERIOD.

       Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2133(c)) is amended--
       (1) by striking ``c. Each such'' and inserting the 
     following:
       ``c. License Period.--
       ``(1) In general.--Each such''; and
       (2) by adding at the end the following:
       ``(2) Combined licenses.--In the case of a combined 
     construction and operating license issued under section 185 
     b., the initial duration of the license may not exceed 40 
     years from the date on which the Commission finds, before 
     operation of the facility, that the acceptance criteria 
     required by section 185 b. are met.''.

     SEC. 302. COST RECOVERY FROM GOVERNMENT AGENCIES.

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

     SEC. 303. DEPLETED URANIUM HEXAFLUORIDE.

       Section 1(b) of Public Law 105-204 is amended by striking 
     ``fiscal year 2002'' and inserting ``fiscal year 2005''.

     SEC. 304. NUCLEAR REGULATORY COMMISSION MEETINGS.

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

     SEC. 305. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
                   DEMONSTRATION PROJECTS FOR THE URANIUM MINING 
                   INDUSTRY.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $10,000,000 for each of 
     fiscal years 2002, 2003, and 2004 for--
       (1) cooperative, cost-shared, agreements between the 
     Department of Energy and domestic uranium producers to 
     identify, test, and develop improved in situ leaching mining 
     technologies, including low-cost environmental restoration 
     technologies that may be applied to sites after completion of 
     in situ leaching operations; and
       (2) funding for competitively selected demonstration 
     projects with domestic uranium producers relating to--
       (A) enhanced production with minimal environmental impacts;
       (B) restoration of well fields; and
       (C) decommissioning and decontamination activities.
       (b) Domestic Uranium Producer.--For purposes of this 
     section, the term ``domestic uranium producer'' has the 
     meaning given that term in section 1018(4) of the Energy 
     Policy Act of 1992 (42 U.S.C. 2296b-7(4)), except that the 
     term shall not include any producer that has not produced 
     uranium from domestic reserves on or after July 30, 1998.

     SEC. 306. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION 
                   INDUSTRY.

       There are authorized to be appropriated to the Secretary 
     $800,000 for contracting with the Nation's sole remaining 
     uranium converter for the purpose of performing research and 
     development to improve the environmental and economic 
     performance of United States uranium conversion operations.

     SEC. 307. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.

       The Secretary of Energy shall prepare and submit a plan to 
     Congress within 180 days after the date of the enactment of 
     this Act that establishes scope, cost, schedule, sequence of 
     activities, and contracting strategy for--
       (1) the decontamination and decommissioning of the 
     Department of Energy's surplus buildings and facilities at 
     the Paducah Gaseous Diffusion Plant that have no future 
     anticipated reuse; and
       (2) the remediation of Department of Energy Material 
     Storage Areas at the Paducah Gaseous Diffusion Plant.
       Such plan shall inventory all surplus facilities and 
     buildings, and identify and rank health and safety risks 
     associated with such facilities and buildings. Such plan 
     shall inventory all Department of Energy Material Storage 
     Areas, and identify and rank health and safety risks 
     associated with such Department of Energy Material Storage 
     Areas. The Department of Energy shall incorporate these risk 
     factors in designing the sequence and schedule for the plan. 
     Such plan shall identify funding requirements that are in 
     addition to the expected outlays included in the Department 
     of Energy's Environmental Management Plan for the Paducah 
     Gaseous Diffusion Plan.

     SEC. 308. STUDY TO DETERMINE FEASIBILITY OF DEVELOPING 
                   COMMERCIAL NUCLEAR ENERGY PRODUCTION FACILITIES 
                   AT EXISTING DEPARTMENT OF ENERGY SITES.

       (a) In General.--The Secretary of Energy shall conduct a 
     study to determine the feasibility of developing commercial 
     nuclear energy production facilities at Department of Energy 
     sites in existence on the date of the enactment of this Act, 
     including--
       (1) options for how and where nuclear power plants can be 
     developed on existing Department of Energy sites;
       (2) estimates on cost savings to the Federal Government 
     that may be realized by locating new nuclear power plants on 
     Federal sites;
       (3) the feasibility of incorporating new technology into 
     nuclear power plants located on Federal sites;
       (4) potential improvements in the licensing and safety 
     oversight procedures of nuclear power plants located on 
     Federal sites;
       (5) an assessment of the effects of nuclear waste 
     management policies and projects as a result of locating 
     nuclear power plants located on Federal sites; and
       (6) any other factors that the Secretary believes would be 
     relevant in making the determination.
       (b) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the results of the study under subsection 
     (a).

     SEC. 309. PROHIBITION OF COMMERCIAL SALES OF URANIUM BY THE 
                   UNITED STATES UNTIL 2009.

       Section 3112 of the USEC Privatization Act (42 U.S.C. 
     2297h-10) is amended by adding at the end the following new 
     subsection:
       ``(g) Prohibition on Sales.--With the exception of sales 
     pursuant to subsection (b)(2) (42 U.S.C.2297h-10(b)(2)), 
     notwithstanding any other provision of law, the United States 
     Government shall not sell or transfer any uranium (including 
     natural uranium concentrates, natural uranium hexafluoride, 
     enriched uranium, depleted uranium, or uranium in any other 
     form) through March 23, 2009 (except sales or transfers for 
     use by the Tennessee Valley Authority in relation to the 
     Department of Energy's HEU or Tritium programs, or the 
     Department or Energy research reactor sales program, or any 
     depleted uranium hexaflouride to be transferred to a 
     designated Department of Energy contractor in conjunction 
     with the planned

[[Page 23560]]

     construction of the Depleted Uranium Hexaflouride conversion 
     plants in Portsmouth, Ohio, and Paducah, Kentucky, to any 
     natural uranium transferred to the U.S. Enrichment 
     Corporation from the Department of Energy to replace 
     contaminated uranium received from the Department of Energy 
     when the U.S. Enrichment Corporation was privatized in July, 
     1998, or for emergency purposes in the event of a disruption 
     in supply to end users in the United States). The aggregate 
     of sales or transfers of uranium by the United States 
     Government after March 23, 2009, shall not exceed 3,000,000 
     pounds U3O8 per calendar year.''.

                     TITLE IV--HYDROELECTRIC ENERGY

     SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.

       (a) Alternative Mandatory Conditions.--Section 4 of the 
     Federal Power Act (16 U.S.C. 797) is amended by adding at the 
     end the following:
       ``(h)(1) Whenever any person applies for a license for any 
     project works within any reservation of the United States, 
     and the Secretary of the department under whose supervision 
     such reservation falls deems a condition to such license to 
     be necessary under the first proviso of subsection (e), the 
     license applicant or any other party to the licensing 
     proceeding may propose an alternative condition.
       ``(2) Notwithstanding the first proviso of subsection (e), 
     the Secretary of the department under whose supervision the 
     reservation falls shall accept the proposed alternative 
     condition referred to in paragraph (1), and the Commission 
     shall include in the license such alternative condition, if 
     the Secretary of the appropriate department determines, based 
     on substantial evidence provided by the party proposing such 
     alternative condition, that the alternative condition--
       ``(A) provides no less protection for the reservation than 
     provided by the condition deemed necessary by the Secretary; 
     and
       ``(B) will either--
       ``(i) cost less to implement, or
       ``(ii) result in improved operation of the project works 
     for electricity production,

     as compared to the condition deemed necessary by the 
     Secretary.
       ``(3) Within 1 year after the enactment of this subsection, 
     each Secretary concerned shall, by rule, establish a process 
     to expeditiously resolve conflicts arising under this 
     subsection.''.
       (b) Alternative Fishways.--Section 18 of the Federal Power 
     Act (16 U.S.C. 811) is amended by--
       (1) inserting ``(a)'' before the first sentence; and
       (2) adding at the end the following:
       ``(b)(1) Whenever the Commission shall require a licensee 
     to construct, maintain, or operate a fishway prescribed by 
     the Secretary of the Interior or the Secretary of Commerce 
     under this section, the licensee or any other party to the 
     proceeding may propose an alternative to such prescription to 
     construct, maintain, or operate a fishway.
       ``(2) Notwithstanding subsection (a), the Secretary of the 
     Interior or the Secretary of Commerce, as appropriate, shall 
     accept and prescribe, and the Commission shall require, the 
     proposed alternative referred to in paragraph (1), if the 
     Secretary of the appropriate department determines, based on 
     substantial evidence provided by the party proposing such 
     alternative, that the alternative--
       ``(A) will be no less effective than the fishway initially 
     prescribed by the Secretary, and
       ``(B) will either--
       ``(i) cost less to implement, or
       ``(ii) result in improved operation of the project works 
     for electricity production,

     as compared to the fishway initially prescribed by the 
     Secretary.
       ``(3) Within 1 year after the enactment of this subsection, 
     the Secretary of the Interior and the Secretary of Commerce 
     shall each, by rule, establish a process to expeditiously 
     resolve conflicts arising under this subsection.''.

     SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.

       (a) Data Collection Procedures.--The Federal Energy 
     Regulatory Commission shall revise its procedures regarding 
     the collection of data in connection with the Commission's 
     consideration of hydroelectric licenses under the Federal 
     Power Act. Such revised data collection procedures shall be 
     designed to provide the Commission with complete and accurate 
     information concerning the time and costs to parties involved 
     in the licensing process. Such data shall be available for 
     each significant stage in the licensing process and shall be 
     designed to identify projects with similar characteristics so 
     that analyses can be made of the time and costs involved in 
     licensing proceedings based upon the different 
     characteristics of those proceedings.
       (b) Reports.--Within 6 months after the date of the 
     enactment of this Act, the Commission shall notify the 
     Committee on Energy and Commerce of the United States House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the United States Senate of the progress made by 
     the Commission under subsection (a), and within 1 year after 
     such date of the enactment, the Commission shall submit a 
     report to such Committees specifying the measures taken by 
     the Commission pursuant to subsection (a).

                             TITLE V--FUELS

     SEC. 501. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.

       Not later than 60 days after the enactment of the Act, the 
     Administrator of the Environmental Protection Agency shall 
     commence a rulemaking to determine whether modifications to 
     the regulations set forth in 40 CFR Section 80.78 and any 
     associated regulations regarding the transition to high ozone 
     season reformulated gasoline are necessary to ensure that the 
     transition to high ozone season reformulated gasoline is 
     conducted in a manner that minimizes disruptions to the 
     general availability and affordability of gasoline, and 
     maximizes flexibility with regard to the draining and 
     inventory management of gasoline storage tanks located at 
     refineries, terminals, wholesale and retail outlets, 
     consistent with the goals of the Clean Air Act. The 
     Administrator shall propose and take final action in such 
     rulemaking to ensure that any modifications are effective and 
     implemented at least 60 days prior to the beginning of the 
     high ozone season for the year 2002.

     SEC. 502. GASOLINE BLENDSTOCK REQUIREMENTS.

       Not later than 60 days after the enactment of this Act, the 
     Administrator of the Environmental Protection Agency shall 
     commence a rulemaking to determine whether modifications to 
     product transfer documentation, accounting, compliance 
     calculation, and other requirements contained in the 
     regulations of the Administrator set forth in section 80.102 
     of title 40 of the Code of Federal Regulations relating to 
     gasoline blendstocks are necessary to facilitate the movement 
     of gasoline and gasoline feedstocks among different regions 
     throughout the country and to improve the ability of 
     petroleum refiners and importers to respond to regional 
     gasoline shortages and prevent unreasonable short-term price 
     increases. The Administrator shall take into consideration 
     the extent to which such requirements have been, or will be, 
     rendered unnecessary or inefficient by reason of subsequent 
     environmental safeguards that were not in effect at the time 
     the regulations in section 80.102 of title 40 of the Code of 
     Federal Regulations were promulgated. The Administrator shall 
     propose and take final action in such rulemaking to ensure 
     that any modifications are effective and implemented at least 
     60 days prior to the beginning of the high ozone season for 
     the year 2002.

     SEC. 503. BOUTIQUE FUELS.

       (a) Joint Study.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Energy shall jointly 
     conduct a study of all Federal, State, and local requirements 
     regarding motor vehicle fuels, including requirements 
     relating to reformulated gasoline, volatility (Reid Vapor 
     Pressure), oxygenated fuel, diesel fuel and other 
     requirements that vary from State to State, region to region, 
     or locality to locality. The study shall analyze--
       (1) the effect of the variety of such requirements on the 
     price of motor vehicle fuels to the consumer;
       (2) the availability and affordability of motor vehicle 
     fuels in different States and localities;
       (3) the effect of Federal, State, and local regulations, 
     including multiple fuel requirements, on domestic refineries 
     and the fuel distribution system;
       (4) the effect of such requirements on local, regional, and 
     national air quality requirements and goals;
       (5) the effect of such requirements on vehicle emissions;
       (6) the feasibility of developing national or regional fuel 
     specifications for the contiguous United States that would--
       (A) enhance flexibility in the fuel distribution 
     infrastructure and improve fuel fungibility;
       (B) reduce price volatility and costs to consumers and 
     producers;
       (C) meet local, regional, and national air quality 
     requirements and goals; and
       (D) provide increased gasoline market liquidity;
       (7) the extent to which the Environmental Protection 
     Agency's Tier II requirements for conventional gasoline may 
     achieve in future years the same or similar air quality 
     results as State reformulated gasoline programs and State 
     programs regarding gasoline volatility (RVP); and
       (8) the feasibility of providing incentives to promote 
     cleaner burning fuel.
       (b) Report.--By December 31, 2001, the Administrator of the 
     Environmental Protection Agency and the Secretary of Energy 
     shall submit a report to the Congress containing the results 
     of the study conducted under subsection (a). Such report 
     shall contain recommendations for legislative and 
     administrative actions that may be taken to simplify the 
     national distribution system for motor vehicle fuel, make 
     such system more cost-effective, and reduce the costs and 
     increase the availability of motor vehicle fuel to the end 
     user while meeting the requirements of the Clean Air Act. 
     Such recommendations shall take into account the need to 
     provide lead time for refinery and

[[Page 23561]]

     fuel distribution system modifications necessary to assure 
     adequate fuel supply for all States.

     SEC. 504. FUNDING FOR MTBE CONTAMINATION.

       Notwithstanding any other provision of law, there is 
     authorized to be appropriated to the Administrator of the 
     Environmental Protection Agency from the Leaking Underground 
     Storage Trust Fund not more than $200,000,000 to be used for 
     taking such action, limited to assessment, corrective action, 
     inspection of underground storage tank systems, and 
     groundwater monitoring in connection with MTBE contamination, 
     as the Administrator deems necessary to protect human health 
     and the environment from releases of methyl tertiary butyl 
     ether (MTBE) from underground storage tanks.

                       TITLE VI--RENEWABLE ENERGY

     SEC. 601. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

       (a) Resource Assessment.--Not later than 1 year after the 
     date of the enactment of this Act, and each year thereafter, 
     the Secretary of Energy shall publish an assessment by the 
     National Laboratories of all renewable energy resources 
     available within the United States.
       (b) Contents of Report.--The report published under 
     subsection (a) shall contain each of the following:
       (1) A detailed inventory describing the available amount 
     and characteristics of solar, wind, biomass, geothermal, 
     hydroelectric and other renewable energy sources.
       (2) Such other information as the Secretary of Energy 
     believes would be useful in developing such renewable energy 
     resources, including descriptions of surrounding terrain, 
     population and load centers, nearby energy infrastructure, 
     location of energy and water resources, and available 
     estimates of the costs needed to develop each resource.

     SEC. 602. RENEWABLE ENERGY PRODUCTION INCENTIVE.

       Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 
     13317) is amended as follows:
       (1) In subsection (a) by striking ``and which satisfies'' 
     and all that follows through ``Secretary shall establish.'' 
     and inserting ``. The Secretary shall establish other 
     procedures necessary for efficient administration of the 
     program. The Secretary shall not establish any criteria or 
     procedures that have the effect of assigning to proposals a 
     higher or lower priority for eligibility or allocation of 
     appropriated funds on the basis of the energy source 
     proposed.''.
       (2) In subsection (b)--
       (A) by striking ``a State or any political'' and all that 
     follows through ``nonprofit electrical cooperative'' and 
     inserting ``an electricity-generating cooperative exempt from 
     taxation under section 501(c)(12) or section 1381(a)(2)(C) of 
     the Internal Revenue Code of 1986, a public utility described 
     in section 115 of such Code, a State, Commonwealth, 
     territory, or possession of the United States or the District 
     of Columbia, or a political subdivision thereof, or an Indian 
     tribal government or subdivision thereof,''; and
       (B) By inserting ``landfill gas,'' after ``wind, 
     biomass,''.
       (3) In subsection (c) by striking ``during the 10-fiscal 
     year period beginning with the first full fiscal year 
     occurring after the enactment of this section'' and inserting 
     ``before October 1, 2013''.
       (4) In subsection (d) by inserting ``or in which the 
     Secretary finds that all necessary Federal and State 
     authorizations have been obtained to begin construction of 
     the facility'' after ``eligible for such payments''.
       (5) In subsection (e)(1) by inserting ``landfill gas,'' 
     after ``wind, biomass,''.
       (6) In subsection (f) by striking ``the expiration of'' and 
     all that follows through ``of this section'' and inserting 
     ``September 30, 2023''.
       (7) In subsection (g)--
       (A) by striking ``1993, 1994, and 1995'' and inserting 
     ``2003 through 2023''; and
       (B) by inserting ``Funds may be appropriated pursuant to 
     this subsection to remain available until expended.'' after 
     ``purposes of this section.''.

     SEC. 603. STUDY OF ETHANOL FROM SOLID WASTE LOAN GUARANTEE 
                   PROGRAM.

       The Secretary of Energy shall conduct a study of the 
     feasibility of providing guarantees for loans by private 
     banking and investment institutions for facilities for the 
     processing and conversion of municipal solid waste and sewage 
     sludge into fuel ethanol and other commercial byproducts, and 
     not later than 90 days after the date of the enactment of 
     this Act shall transmit to the Congress a report on the 
     results of the study.

     SEC. 604. STUDY OF RENEWABLE FUEL CONTENT.

       (a) Study.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Energy shall jointly 
     conduct a study of the feasibility of developing a 
     requirement that motor vehicle fuel sold or introduced into 
     commerce in the United States in calendar year 2002 or any 
     calendar year thereafter by a refiner, blender, or importer 
     shall, on a 6-month average basis, be comprised of a quantity 
     of renewable fuel, measured in gasoline-equivalent gallons. 
     As part of this study, the Administrator and Secretary shall 
     evaluate the use of a banking and trading credit system and 
     the feasibility and desirability of requiring an increasing 
     percentage of renewable fuel to be phased in over a 15-year 
     period.
       (b) Report to Congress.--Not later than 6 months after the 
     date of the enactment of this Act, the Administrator and the 
     Secretary shall transmit to the Congress a report on the 
     results of the study conducted under this section.

                          TITLE VII--PIPELINES

     SEC. 701. PROHIBITION ON CERTAIN PIPELINE ROUTE.

       No license, permit, lease, right-of-way, authorization or 
     other approval required under Federal law for the 
     construction of any pipeline to transport natural gas from 
     lands within the Prudhoe Bay oil and gas lease area may be 
     granted for any pipeline that follows a route that 
     traverses--
       (1) the submerged lands (as defined by the Submerged Lands 
     Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
     and
       (2) enters Canada at any point north of 68 degrees North 
     latitude.

     SEC. 702. HISTORIC PIPELINES.

       Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) is 
     amended by adding at the end the following new subsection:
       ``(i) Notwithstanding the National Historic Preservation 
     Act, a transportation facility shall not be eligible for 
     inclusion on the National Register of Historic Places 
     unless--
       ``(1) the Commission has permitted the abandonment of the 
     transportation facility pursuant to subsection (b) of this 
     section, or
       ``(2) the owner of the facility has given written consent 
     to such eligibility.

     Any transportation facility deemed eligible for inclusion on 
     the National Register of Historic Places prior to the date of 
     the enactment of this subsection shall no longer be eligible 
     unless the owner of the facility gives written consent to 
     such eligibility.''.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

     SEC. 801. WASTE REDUCTION AND USE OF ALTERNATIVES.

       (a) Grant Authority.--The Secretary of Energy is authorized 
     to make a single grant to a qualified institution to examine 
     and develop the feasibility of burning post-consumer carpet 
     in cement kilns as an alternative energy source. The purposes 
     of the grant shall include determining--
       (1) how post-consumer carpet can be burned without 
     disrupting kiln operations;
       (2) the extent to which overall kiln emissions may be 
     reduced; and
       (3) how this process provides benefits to both cement kiln 
     operations and carpet suppliers.
       (b) Qualified Institution.--For the purposes of subsection 
     (a), a qualified institution is a research-intensive 
     institution of higher learning with demonstrated expertise in 
     the fields of fiber recycling and logistical modeling of 
     carpet waste collection and preparation.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy for carrying 
     out this section $275,000 for fiscal year 2002, to remain 
     available until expended.

     SEC. 802. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.

       (a) Report.--The Secretary of Energy, in consultation with 
     the heads of other relevant Federal agencies, shall include 
     in each report under section 801(c) of the Department of 
     Energy Organization Act a section 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 information required under this 
     section to be included in the reports under section 801(c) of 
     the Department of Energy Organization Act shall include a 
     specification of what legislative or administrative actions 
     must be implemented to meet this goal and set forth a range 
     of options and alternatives with a cost/benefit 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 
     information required under this section. The information 
     shall indicate, in detail, options and alternatives to--
       (1) increase the use of renewable domestic energy sources, 
     including conventional and nonconventional sources;
       (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.

     SEC. 803. STUDY OF AIRCRAFT EMISSIONS.

       The Secretary of Transportation and the Administrator of 
     the Environmental Protection Agency shall jointly commence a 
     study within 60 days after the enactment of this Act to 
     investigate the impact of aircraft emissions on air quality 
     in areas that are considered to be in nonattainment for the 
     national ambient air quality standard for ozone. As part of 
     this study, the Secretary and the Administrator shall focus 
     on the impact of emissions by aircraft idling at airports and 
     on the contribution of such emissions as a percentage of 
     total emissions in the nonattainment area. Within 180 days of

[[Page 23562]]

     the commencement of the study, the Secretary and the 
     Administrator shall submit a report to the Committees on 
     Energy and Commerce and Transportation and Infrastructure of 
     the United States House of Representatives and to the 
     Committees on Environment and Public Works and Commerce, 
     Science, and Transportation of the United States Senate 
     containing the results of the study and recommendations with 
     respect to a plan to maintain comprehensive data on aircraft 
     emissions and methods by which such emissions may be reduced, 
     without increasing individual aircraft noise, in order to 
     assist in the attainment of the national ambient air quality 
     standards.

                               DIVISION B

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Comprehensive Energy 
     Research and Technology Act of 2001''.

     SEC. 2002. FINDINGS.

       The Congress finds that--
       (1) the Nation's prosperity and way of life are sustained 
     by energy use;
       (2) the growing imbalance between domestic energy 
     production and consumption means that the Nation is becoming 
     increasingly reliant on imported energy, which has the 
     potential to undermine the Nation's economy, standard of 
     living, and national security;
       (3) energy conservation and energy efficiency help maximize 
     the use of available energy resources, reduce energy 
     shortages, lower the Nation's reliance on energy imports, 
     mitigate the impacts of high energy prices, and help protect 
     the environment and public health;
       (4) development of a balanced portfolio of domestic energy 
     supplies will ensure that future generations of Americans 
     will have access to the energy they need;
       (5) energy efficiency technologies, renewable and 
     alternative energy technologies, and advanced energy systems 
     technologies will help diversify the Nation's energy 
     portfolio with few adverse environmental impacts and are 
     vital to delivering clean energy to fuel the Nation's 
     economic growth;
       (6) development of reliable, affordable, and 
     environmentally sound energy efficiency technologies, 
     renewable and alternative energy technologies, and advanced 
     energy systems technologies will require maintenance of a 
     vibrant fundamental scientific knowledge base and continued 
     scientific and technological innovations that can be 
     accelerated by Federal funding, whereas commercial deployment 
     of such systems and technologies are the responsibility of 
     the private sector;
       (7) Federal funding should focus on those programs, 
     projects, and activities that are long-term, high-risk, 
     noncommercial, and well-managed, and that provide the 
     potential for scientific and technological advances; and
       (8) public-private partnerships should be encouraged to 
     leverage scarce taxpayer dollars.

     SEC. 2003. PURPOSES.

       The purposes of this division are to--
       (1) protect and strengthen the Nation's economy, standard 
     of living, and national security by reducing dependence on 
     imported energy;
       (2) meet future needs for energy services at the lowest 
     total cost to the Nation, including environmental costs, 
     giving balanced and comprehensive consideration to 
     technologies that improve the efficiency of energy end uses 
     and that enhance energy supply;
       (3) reduce the air, water, and other environmental impacts 
     (including emissions of greenhouse gases) of energy 
     production, distribution, transportation, and use through the 
     development of environmentally sustainable energy systems;
       (4) consider the comparative environmental impacts of the 
     energy saved or produced by specific programs, projects, or 
     activities;
       (5) maintain the technological competitiveness of the 
     United States and stimulate economic growth through the 
     development of advanced energy systems and technologies;
       (6) foster international cooperation by developing 
     international markets for domestically produced sustainable 
     energy technologies, and by transferring environmentally 
     sound, advanced energy systems and technologies to developing 
     countries to promote sustainable development;
       (7) provide sufficient funding of programs, projects, and 
     activities that are performance-based and modeled as public-
     private partnerships, as appropriate; and
       (8) enhance the contribution of a given program, project, 
     or activity to fundamental scientific knowledge.

     SEC. 2004. GOALS.

       (a) In General.--Subject to subsection (b), in order to 
     achieve the purposes of this division under section 2003, the 
     Secretary should conduct a balanced energy research, 
     development, demonstration, and commercial application 
     portfolio of programs guided by the following goals to meet 
     the purposes of this division under section 2003.
       (1) Energy conservation and energy efficiency.--
       (A) For the Building Technology, State and Community 
     Sector, the program should develop technologies, housing 
     components, designs, and production methods that will, by 
     2010--
       (i) reduce the monthly energy cost of new housing by 20 
     percent, compared to the cost as of the date of the enactment 
     of this Act;
       (ii) cut the environmental impact and energy use of new 
     housing by 50 percent, compared to the impact and use as of 
     the date of the enactment of this Act; and
       (iii) improve durability and reduce maintenance costs by 50 
     percent compared to the durability and costs as of the date 
     of the enactment of this Act.
       (B) For the Industry Sector, the program should, in 
     cooperation with the affected industries, improve the energy 
     intensity of the major energy-consuming industries by at 
     least 25 percent by 2010, compared to the energy intensity as 
     of the date of the enactment of this Act.
       (C) For Power Technologies, the program should, in 
     cooperation with the affected industries--
       (i) develop a microturbine (40 to 300 kilowatt) that is 
     more than 40 percent more efficient by 2006, and more than 50 
     percent more efficient by 2010, compared to the efficiency as 
     of the date of the enactment of this Act; and
       (ii) develop advanced materials for combustion systems that 
     reduce emissions of nitrogen oxides by 30 to 50 percent while 
     increasing efficiency 5 to 10 percent by 2007, compared to 
     such emissions as of the date of the enactment of this Act.
       (D) For the Transportation Sector, the program should, in 
     cooperation with affected industries--
       (i) develop a production prototype passenger automobile 
     that has fuel economy equivalent to 80 miles per gallon of 
     gasoline by 2004;
       (ii) develop class 7 and 8 heavy duty trucks and buses with 
     ultra low emissions and the ability to use an alternative 
     fuel that has an average fuel economy equivalent to--

       (I) 10 miles per gallon of gasoline by 2007; and
       (II) 13 miles per gallon of gasoline by 2010;

       (iii) develop a production prototype of a passenger 
     automobile with zero equivalent emissions that has an average 
     fuel economy of 100 miles per gallon of gasoline by 2010; and
       (iv) improve, by 2010, the average fuel economy of trucks--

       (I) in classes 1 and 2 by 300 percent; and
       (II) in classes 3 through 6 by 200 percent,

     compared to the fuel economy as of the date of the enactment 
     of this Act.
       (2) Renewable energy.--
       (A) For Hydrogen Research, to carry out the Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990, as amended by subtitle A of title II of this 
     division.
       (B) For bioenergy:
       (i) The program should reduce the cost of bioenergy 
     relative to other energy sources to enable the United States 
     to triple bioenergy use by 2010.
       (ii) For biopower systems, the program should reduce the 
     cost of such systems to enable commercialization of 
     integrated power-generating technologies that employ gas 
     turbines and fuel cells integrated with bioenergy gasifiers 
     within 5 years after the date of the enactment of this Act.
       (iii) For biofuels, the program should accelerate research, 
     development, and demonstration on advanced enzymatic 
     hydrolysis technology for making ethanol from cellulosic 
     feedstock, with the goal that between 2010 and 2015 ethanol 
     produced from energy crops would be fully competitive in 
     terms of price with gasoline as a neat fuel, in either 
     internal combustion engines or fuel cell vehicles.
       (C) For Geothermal Technology Development, the program 
     should focus on advanced concepts for the long term. The 
     first priority should be high-grade enhanced geothermal 
     systems; the second priority should be lower grade, hot dry 
     rock, and geopressured systems; and the third priority should 
     be support of field demonstrations of enhanced geothermal 
     systems technology, including sites in lower grade areas to 
     demonstrate the benefits of reservoir concepts to different 
     conditions.
       (D) For Hydropower, the program should provide a new 
     generation of turbine technologies that will increase 
     generating capacity and will be less damaging to fish and 
     aquatic ecosystems.
       (E) For Concentrating Solar Power, the program should 
     strengthen ongoing research, development, and demonstration 
     combining high-efficiency and high-temperature receivers with 
     advanced thermal storage and power cycles, with the goal of 
     making solar-only power (including baseload solar power) 
     widely competitive with fossil fuel power by 2015. The 
     program should limit or halt its research and development on 
     power-tower and power-trough technologies because further 
     refinements to these concepts will not further their 
     deployment, and should assess the market prospects for solar 
     dish/engine technologies to determine whether continued 
     research and development is warranted.
       (F) For Photovoltaic Energy Systems, the program should 
     pursue research, development, and demonstration that will, by 
     2005, increase the efficiency of thin film modules from the 
     current 7 percent to 11 percent in

[[Page 23563]]

     multi-million watt production; reduce the direct 
     manufacturing cost of photovoltaic modules by 30 percent from 
     the current $2.50 per watt to $1.75 per watt by 2005; and 
     establish greater than a 20-year lifetime of photovoltaic 
     systems by improving the reliability and lifetime of balance-
     of-system components and reducing recurring cost by 40 
     percent. The program's top priority should be the development 
     of sound manufacturing technologies for thin-film modules, 
     and the program should make a concerted effort to integrate 
     fundamental research and basic engineering research.
       (G) For Solar Building Technology Research, the program 
     should complete research and development on new polymers and 
     manufacturing processes to reduce the cost of solar water 
     heating by 50 percent by 2004, compared to the cost as of the 
     date of the enactment of this Act.
       (H) For Wind Energy Systems, the program should reduce the 
     cost of wind energy to three cents per kilowatt-hour at Class 
     6 (15 miles-per-hour annual average) wind sites by 2004, and 
     4 cents per kilowatt-hour in Class 4 (13 miles-per-hour 
     annual average) wind sites by 2015, and further if required 
     so that wind power can be widely competitive with fossil-
     fuel-based electricity in a restructured electric industry. 
     Program research on advanced wind turbine technology should 
     focus on turbulent flow studies, durable materials to extend 
     turbine life, blade efficiency, and higher efficiency 
     operation in low quality wind regimes.
       (I) For Electric Energy Systems and Storage, including High 
     Temperature Superconducting Research and Development, Energy 
     Storage Systems, and Transmission Reliability, the program 
     should develop high capacity superconducting transmission 
     lines and generators, highly reliable energy storage systems, 
     and distributed generating systems to accommodate multiple 
     types of energy sources under common interconnect standards.
       (J) For the International Renewable Energy and Renewable 
     Energy Production Incentive programs, and Renewable Program 
     Support, the program should encourage the commercial 
     application of renewable energy technologies by developed and 
     developing countries, State and local governmental entities 
     and nonprofit electric cooperatives, and by the competitive 
     domestic market.
       (3) Nuclear energy.--
       (A) For university nuclear science and engineering, the 
     program should carry out the provisions of subtitle A of 
     title III of this division.
       (B) For fuel cycle research, development, and 
     demonstration, the program should carry out the provisions of 
     subtitle B of title III of this division.
       (C) For the Nuclear Energy Research Initiative, the program 
     should accomplish the objectives of section 2341(b) of this 
     Act.
       (D) For the Nuclear Energy Plant Optimization Program, the 
     program should accomplish the objectives of section 2342(b) 
     of this Act.
       (E) For Nuclear Energy Technologies, the program should 
     carry out the provisions of section 2343 of this Act.
       (F) For Advanced Radioisotope Power Systems, the program 
     should ensure that the United States has adequate capability 
     to power future satellite and space missions.
       (4) Fossil energy.--
       (A) For core fossil energy research and development, the 
     program should achieve the goals outlined by the Department's 
     Vision 21 Program. This research should address fuel-flexible 
     gasification and turbines, fuel cells, advanced-combustion 
     systems, advanced fuels and chemicals, advanced modeling and 
     systems analysis, materials and heat exchangers, 
     environmental control technologies, gas-stream purification, 
     gas-separation technology, and sequestration research and 
     development focused on cost-effective novel concepts for 
     capturing, reusing or storing, or otherwise mitigating carbon 
     and other greenhouse gas emissions.
       (B) For offshore oil and natural gas resources, the program 
     should investigate and develop technologies to--
       (i) extract methane hydrates in coastal waters of the 
     United States, in accordance with the provisions of the 
     Methane Hydrate Research and Development Act of 2000; and
       (ii) develop natural gas and oil reserves in the ultra-
     deepwater of the Central and Western Gulf of Mexico. Research 
     and development on ultra-deepwater resource recovery shall 
     focus on improving the safety and efficiency of such recovery 
     and of sub-sea production technology used for such recovery, 
     while lowering costs.
       (C) For transportation fuels, the program should support a 
     comprehensive transportation fuels strategy to increase the 
     price elasticity of oil supply and demand by focusing 
     research on reducing the cost of producing transportation 
     fuels from natural gas and indirect liquefaction of coal.
       (5) Science.--The Secretary, through the Office of Science, 
     should--
       (A) develop and maintain a robust portfolio of fundamental 
     scientific and energy research, including High Energy and 
     Nuclear Physics, Biological and Environmental Research, Basic 
     Energy Sciences (including Materials Sciences, Chemical 
     Sciences, Engineering and Geosciences, and Energy 
     Biosciences), Advanced Scientific Computing, Energy Research 
     and Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Fusion Energy Sciences, and Facilities and 
     Infrastructure;
       (B) maintain, upgrade, and expand, as appropriate, and in 
     accordance with the provisions of this division, the 
     scientific user facilities maintained by the Office of 
     Science, and ensure that they are an integral part of the 
     Department's mission for exploring the frontiers of 
     fundamental energy sciences; and
       (C) ensure that its fundamental energy sciences programs, 
     where appropriate, help inform the applied research and 
     development programs of the Department.
       (b) Review and Assessment.--The Secretary shall perform an 
     assessment that establishes measurable cost and performance-
     based goals, or that modifies the goals under subsection (a), 
     as appropriate, for 2005, 2010, 2015, and 2020 for each of 
     the programs authorized by this division that would enable 
     each such program to meet the purposes of this division under 
     section 2003. Such assessment shall be based on the latest 
     scientific and technical knowledge, and shall also take into 
     consideration, as appropriate, the comparative environmental 
     impacts (including emissions of greenhouse gases) of the 
     energy saved or produced by specific programs.
       (c) Consultation.--In establishing the measurable cost and 
     performance-based goals under subsection (b), the Secretary 
     shall consult with the private sector, institutions of higher 
     learning, national laboratories, environmental organizations, 
     professional and technical societies, and any other persons 
     as the Secretary considers appropriate.
       (d) Schedule.--The Secretary shall--
       (1) issue and publish in the Federal Register a set of 
     draft measurable cost and performance-based goals for the 
     programs authorized by this division for public comment--
       (A) in the case of a program established before the date of 
     the enactment of this Act, not later than 120 days after the 
     date of the enactment of this Act; and
       (B) in the case of a program not established before the 
     date of the enactment of this Act, not later than 120 days 
     after the date of establishment of the program;
       (2) not later than 60 days after the date of publication 
     under paragraph (1), after taking into consideration any 
     public comments received, transmit to the Congress and 
     publish in the Federal Register the final measurable cost and 
     performance-based goals; and
       (3) update all such cost and performance-based goals on a 
     biennial basis.

     SEC. 2005. DEFINITIONS.

       For purposes of this division, except as otherwise 
     provided--
       (1) the term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency;
       (2) the term ``appropriate congressional committees'' 
     means--
       (A) the Committee on Science and the Committee on 
     Appropriations of the House of Representatives; and
       (B) the Committee on Energy and Natural Resources and the 
     Committee on Appropriations of the Senate;
       (3) the term ``Department'' means the Department of Energy; 
     and
       (4) the term ``Secretary'' means the Secretary of Energy.

     SEC. 2006. AUTHORIZATIONS.

       Authorizations of appropriations under this division are 
     for environmental research and development, scientific and 
     energy research, development, and demonstration, and 
     commercial application of energy technology programs, 
     projects, and activities.

     SEC. 2007. BALANCE OF FUNDING PRIORITIES.

       (a) Sense of Congress.--It is the sense of the Congress 
     that the funding of the various programs authorized by titles 
     I through IV of this division should remain in the same 
     proportion to each other as provided in this division, 
     regardless of the total amount of funding made available for 
     those programs.
       (b) Report to Congress.--If for fiscal year 2002, 2003, or 
     2004 the amounts appropriated in general appropriations Acts 
     for the programs authorized in titles I through IV of this 
     division are not in the same proportion to one another as are 
     the authorizations for such programs in this division, the 
     Secretary and the Administrator shall, within 60 days after 
     the date of the enactment of the last general appropriations 
     Act appropriating amounts for such programs, transmit to the 
     appropriate congressional committees a report describing the 
     programs, projects, and activities that would have been 
     funded if the proportions provided for in this division had 
     been maintained in the appropriations. The amount 
     appropriated for the program receiving the highest percentage 
     of its authorized funding for a fiscal year shall be used as 
     the baseline for calculating the proportional deficiencies of 
     appropriations for other programs in that fiscal year.

           TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY

                 Subtitle A--Alternative Fuel Vehicles

     SEC. 2101. SHORT TITLE.

       This subtitle may be cited as the ``Alternative Fuel 
     Vehicle Acceleration Act of 2001''.

[[Page 23564]]



     SEC. 2102. DEFINITIONS.

       For the purposes of this subtitle, the following 
     definitions apply:
       (1) Alternative fuel vehicle.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``alternative fuel vehicle'' means a motor vehicle 
     that is powered--
       (i) in whole or in part by electricity, including 
     electricity supplied by a fuel cell;
       (ii) by liquefied natural gas;
       (iii) by compressed natural gas;
       (iv) by liquefied petroleum gas;
       (v) by hydrogen;
       (vi) by methanol or ethanol at no less than 85 percent by 
     volume; or
       (vii) by propane.
       (B) Exclusions.--The term ``alternative fuel vehicle'' does 
     not include--
       (i) any vehicle designed to operate solely on gasoline or 
     diesel derived from fossil fuels, regardless of whether it 
     can also be operated on an alternative fuel; or
       (ii) any vehicle that the Secretary determines, by rule, 
     does not yield substantial environmental benefits over a 
     vehicle operating solely on gasoline or diesel derived from 
     fossil fuels.
       (2) Pilot program.--The term ``pilot program'' means the 
     competitive grant program established under section 2103.
       (3) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
     sulfur diesel vehicle'' means a vehicle powered by a heavy-
     duty diesel engine that--
       (A) is fueled by diesel fuel which contains sulfur at not 
     more than 15 parts per million; and
       (B) emits not more than the lesser of--
       (i) for vehicles manufactured in--

       (I) model years 2001 through 2003, 3.0 grams per brake 
     horsepower-hour of nonmethane hydrocarbons and oxides of 
     nitrogen and .01 grams per brake horsepower-hour of 
     particulate matter; and
       (II) model years 2004 through 2006, 2.5 grams per brake 
     horsepower-hour of nonmethane hydrocarbons and oxides of 
     nitrogen and .01 grams per brake horsepower-hour of 
     particulate matter; or

       (ii) the emissions of nonmethane hydrocarbons, oxides of 
     nitrogen, and particulate matter of the best performing 
     technology of ultra-low sulfur diesel vehicles of the same 
     type that are commercially available.

     SEC. 2103. PILOT PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     competitive grant pilot program to provide not more than 15 
     grants to State governments, local governments, or 
     metropolitan transportation authorities to carry out a 
     project or projects for the purposes described in subsection 
     (b).
       (b) Grant Purposes.--Grants under this section may be used 
     for the following purposes:
       (1) The acquisition of alternative fuel vehicles, 
     including--
       (A) passenger vehicles;
       (B) buses used for public transportation or transportation 
     to and from schools;
       (C) delivery vehicles for goods or services;
       (D) ground support vehicles at public airports, including 
     vehicles to carry baggage or push airplanes away from 
     terminal gates; and
       (E) motorized two-wheel bicycles, scooters, or other 
     vehicles for use by law enforcement personnel or other State 
     or local government or metropolitan transportation authority 
     employees.
       (2) The acquisition of ultra-low sulfur diesel vehicles.
       (3) Infrastructure necessary to directly support an 
     alternative fuel vehicle project funded by the grant, 
     including fueling and other support equipment.
       (4) Operation and maintenance of vehicles, infrastructure, 
     and equipment acquired as part of a project funded by the 
     grant.
       (c) Applications.--
       (1) Requirements.--The Secretary shall issue requirements 
     for applying for grants under the pilot program. At a 
     minimum, the Secretary shall require that applications be 
     submitted by the head of a State or local government or a 
     metropolitan transportation authority, or any combination 
     thereof, and shall include--
       (A) at least one project to enable passengers or goods to 
     be transferred directly from one alternative fuel vehicle or 
     ultra-low sulfur diesel vehicle to another in a linked 
     transportation system;
       (B) a description of the projects proposed in the 
     application, including how they meet the requirements of this 
     subtitle;
       (C) an estimate of the ridership or degree of use of the 
     projects proposed in the application;
       (D) an estimate of the air pollution emissions reduced and 
     fossil fuel displaced as a result of the projects proposed in 
     the application, and a plan to collect and disseminate 
     environmental data, related to the projects to be funded 
     under the grant, over the life of the projects;
       (E) a description of how the projects proposed in the 
     application will be sustainable without Federal assistance 
     after the completion of the term of the grant;
       (F) a complete description of the costs of each project 
     proposed in the application, including acquisition, 
     construction, operation, and maintenance costs over the 
     expected life of the project;
       (G) a description of which costs of the projects proposed 
     in the application will be supported by Federal assistance 
     under this subtitle; and
       (H) documentation to the satisfaction of the Secretary that 
     diesel fuel containing sulfur at not more than 15 parts per 
     million is available for carrying out the projects, and a 
     commitment by the applicant to use such fuel in carrying out 
     the projects.
       (2) Partners.--An applicant under paragraph (1) may carry 
     out projects under the pilot program in partnership with 
     public and private entities.
       (d) Selection Criteria.--In evaluating applications under 
     the pilot program, the Secretary shall consider each 
     applicant's previous experience with similar projects and 
     shall give priority consideration to applications that--
       (1) are most likely to maximize protection of the 
     environment;
       (2) demonstrate the greatest commitment on the part of the 
     applicant to ensure funding for the proposed projects and the 
     greatest likelihood that each project proposed in the 
     application will be maintained or expanded after Federal 
     assistance under this subtitle is completed; and
       (3) exceed the minimum requirements of subsection 
     (c)(1)(A).
       (e) Pilot Project Requirements.--
       (1) Maximum amount.--The Secretary shall not provide more 
     than $20,000,000 in Federal assistance under the pilot 
     program to any applicant.
       (2) Cost sharing.--The Secretary shall not provide more 
     than 50 percent of the cost, incurred during the period of 
     the grant, of any project under the pilot program.
       (3) Maximum period of grants.--The Secretary shall not fund 
     any applicant under the pilot program for more than 5 years.
       (4) Deployment and distribution.--The Secretary shall seek 
     to the maximum extent practicable to achieve nationwide 
     deployment of alternative fuel vehicles through the pilot 
     program, and shall ensure a broad geographic distribution of 
     project sites.
       (5) Transfer of information and knowledge.--The Secretary 
     shall establish mechanisms to ensure that the information and 
     knowledge gained by participants in the pilot program are 
     transferred among the pilot program participants and to other 
     interested parties, including other applicants that submitted 
     applications.
       (f) Schedule.--
       (1) Publication.--Not later than 3 months after the date of 
     the enactment of this Act, the Secretary shall publish in the 
     Federal Register, Commerce Business Daily, and elsewhere as 
     appropriate, a request for applications to undertake projects 
     under the pilot program. Applications shall be due within 6 
     months of the publication of the notice.
       (2) Selection.--Not later than 6 months after the date by 
     which applications for grants are due, the Secretary shall 
     select by competitive, peer review all applications for 
     projects to be awarded a grant under the pilot program.
       (g) Limit on Funding.--The Secretary shall provide not less 
     than 20 percent and not more than 25 percent of the grant 
     funding made available under this section for the acquisition 
     of ultra-low sulfur diesel vehicles.

     SEC. 2104. REPORTS TO CONGRESS.

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

     SEC. 2105. AUTHORIZATION OF APPROPRIATIONS.

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

          Subtitle B--Distributed Power Hybrid Energy Systems

     SEC. 2121. FINDINGS.

       The Congress makes the following findings:
       (1) Our ability to take advantage of our renewable, 
     indigenous resources in a cost-effective manner can be 
     greatly advanced through systems that compensate for the 
     intermittent nature of these resources through distributed 
     power hybrid systems.
       (2) Distributed power hybrid systems can--
       (A) shelter consumers from temporary energy price 
     volatility created by supply and demand mismatches;

[[Page 23565]]

       (B) increase the reliability of energy supply; and
       (C) address significant local differences in power and 
     economic development needs and resource availability that 
     exist throughout the United States.
       (3) Realizing these benefits will require a concerted and 
     integrated effort to remove market barriers to adopting 
     distributed power hybrid systems by--
       (A) developing the technological foundation that enables 
     designing, testing, certifying, and operating distributed 
     power hybrid systems; and
       (B) providing the policy framework that reduces such 
     barriers.
       (4) While many of the individual distributed power hybrid 
     systems components are either available or under development 
     in existing private and public sector programs, the 
     capabilities to integrate these components into workable 
     distributed power hybrid systems that maximize benefits to 
     consumers in a safe manner often are not coherently being 
     addressed.

     SEC. 2122. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``distributed power hybrid system'' means a 
     system using 2 or more distributed power sources, operated 
     together with associated supporting equipment, including 
     storage equipment, and software necessary to provide electric 
     power onsite and to an electric distribution system; and
       (2) the term ``distributed power source'' means an 
     independent electric energy source of usually 10 megawatts or 
     less located close to a residential, commercial, or 
     industrial load center, including--
       (A) reciprocating engines;
       (B) turbines;
       (C) microturbines;
       (D) fuel cells;
       (E) solar electric systems;
       (F) wind energy systems;
       (G) biopower systems;
       (H) geothermal power systems; or
       (I) combined heat and power systems.

     SEC. 2123. STRATEGY.

       (a) Requirement.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary shall develop and 
     transmit to the Congress a distributed power hybrid systems 
     strategy showing--
       (1) needs best met with distributed power hybrid systems 
     configurations, especially systems including one or more 
     solar or renewable power sources; and
       (2) technology gaps and barriers (including barriers to 
     efficient connection with the power grid) that hamper the use 
     of distributed power hybrid systems.
       (b) Elements.--The strategy shall provide for development 
     of--
       (1) system integration tools (including databases, computer 
     models, software, sensors, and controls) needed to plan, 
     design, build, and operate distributed power hybrid systems 
     for maximum benefits;
       (2) tests of distributed power hybrid systems, power parks, 
     and microgrids, including field tests and cost-shared 
     demonstrations with industry;
       (3) design tools to characterize the benefits of 
     distributed power hybrid systems for consumers, to reduce 
     testing needs, to speed commercialization, and to generate 
     data characterizing grid operations, including 
     interconnection requirements;
       (4) precise resource assessment tools to map local 
     resources for distributed power hybrid systems; and
       (5) a comprehensive research, development, demonstration, 
     and commercial application program to ensure the reliability, 
     efficiency, and environmental integrity of distributed energy 
     resources, focused on filling gaps in distributed power 
     hybrid systems technologies identified under subsection 
     (a)(2), which may include--
       (A) integration of a wide variety of advanced technologies 
     into distributed power hybrid systems;
       (B) energy storage devices;
       (C) environmental control technologies;
       (D) interconnection standards, protocols, and equipment; 
     and
       (E) ancillary equipment for dispatch and control.
       (c) Implementation and Integration.--The Secretary shall 
     implement the strategy transmitted under subsection (a) and 
     the research program under subsection (b)(5). Activities 
     pursuant to the strategy shall be integrated with other 
     activities of the Department's Office of Power Technologies.

     SEC. 2124. HIGH POWER DENSITY INDUSTRY PROGRAM.

       (a) In General.--The Secretary shall develop and implement 
     a comprehensive research, development, demonstration, and 
     commercial application program to improve energy efficiency, 
     reliability, and environmental responsibility in high power 
     density industries, such as data centers, server farms, 
     telecommunications facilities, and heavy industry.
       (b) Areas.--In carrying out this section, the Secretary 
     shall consider technologies that provide--
       (1) significant improvement in efficiency of high power 
     density facilities, and in data and telecommunications 
     centers, using advanced thermal control technologies;
       (2) significant improvements in air-conditioning efficiency 
     in facilities such as data centers and telecommunications 
     facilities;
       (3) significant advances in peak load reduction; and
       (4) advanced real time metering and load management and 
     control devices.
       (c) Implementation and Integration.--Activities pursuant to 
     this program shall be integrated with other activities of the 
     Department's Office of Power Technologies.

     SEC. 2125. MICRO-COGENERATION ENERGY TECHNOLOGY.

       The Secretary shall make competitive, merit-based grants to 
     consortia of private sector entities for the development of 
     micro-cogeneration energy technology. The consortia shall 
     explore the creation of small-scale combined heat and power 
     through the use of residential heating appliances. There are 
     authorized to be appropriated to the Secretary $20,000,000 to 
     carry out this section, to remain available until expended.

     SEC. 2126. PROGRAM PLAN.

       Within 4 months after the date of the enactment of this 
     Act, the Secretary, in consultation with other appropriate 
     Federal agencies, shall prepare and transmit to the Congress 
     a 5-year program plan to guide activities under this 
     subtitle. In preparing the program plan, the Secretary shall 
     consult with appropriate representatives of the distributed 
     energy resources, power transmission, and high power density 
     industries to prioritize appropriate program areas. The 
     Secretary shall also seek the advice of utilities, energy 
     services providers, manufacturers, institutions of higher 
     learning, other appropriate State and local agencies, 
     environmental organizations, professional and technical 
     societies, and any other persons the Secretary considers 
     appropriate.

     SEC. 2127. REPORT.

       Two years after date of the enactment of this Act and at 2-
     year intervals thereafter, the Secretary, jointly with other 
     appropriate Federal agencies, shall transmit a report to 
     Congress describing the progress made to achieve the purposes 
     of this subtitle.

     SEC. 2128. VOLUNTARY CONSENSUS STANDARDS.

       Not later than 2 years after the date of the enactment of 
     this Act, the Secretary, in consultation with the National 
     Institute of Standards and Technology, shall work with the 
     Institute of Electrical and Electronic Engineers and other 
     standards development organizations toward the development of 
     voluntary consensus standards for distributed energy systems 
     for use in manufacturing and using equipment and systems for 
     connection with electric distribution systems, for obtaining 
     electricity from, or providing electricity to, such systems.

           Subtitle C--Secondary Electric Vehicle Battery Use

     SEC. 2131. DEFINITIONS.

       For purposes of this subtitle, the term--
       (1) ``battery'' means an energy storage device that 
     previously has been used to provide motive power in a vehicle 
     powered in whole or in part by electricity; and
       (2) ``associated equipment'' means equipment located at the 
     location where the batteries will be used that is necessary 
     to enable the use of the energy stored in the batteries.

     SEC. 2132. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE 
                   BATTERY USE PROGRAM.

       (a) Program.--The Secretary shall establish and conduct a 
     research, development, and demonstration program for the 
     secondary use of batteries where the original use of such 
     batteries was in transportation applications. Such program 
     shall be--
       (1) designed to demonstrate the use of batteries in 
     secondary application, including utility and commercial power 
     storage and power quality;
       (2) structured to evaluate the performance, including 
     longevity of useful service life and costs, of such batteries 
     in field operations, and evaluate the necessary supporting 
     infrastructure, including disposal and reuse of batteries; 
     and
       (3) coordinated with ongoing secondary battery use programs 
     underway at the national laboratories and in industry.
       (b) Solicitation.--(1) Not later than 6 months after the 
     date of the enactment of this Act, the Secretary shall 
     solicit proposals to demonstrate the secondary use of 
     batteries and associated equipment and supporting 
     infrastructure in geographic locations throughout the United 
     States. The Secretary may make additional solicitations for 
     proposals if the Secretary determines that such solicitations 
     are necessary to carry out this section.
       (2)(A) Proposals submitted in response to a solicitation 
     under this section shall include--
       (i) a description of the project, including the batteries 
     to be used in the project, the proposed locations and 
     applications for the batteries, the number of batteries to be 
     demonstrated, and the type, characteristics, and estimated 
     life-cycle costs of the batteries compared to other energy 
     storage devices currently used;
       (ii) the contribution, if any, of State or local 
     governments and other persons to the demonstration project;
       (iii) the type of associated equipment to be demonstrated 
     and the type of supporting infrastructure to be demonstrated; 
     and
       (iv) any other information the Secretary considers 
     appropriate.
       (B) If the proposal includes a lease arrangement, the 
     proposal shall indicate the terms

[[Page 23566]]

     of such lease arrangement for the batteries and associated 
     equipment.
       (c) Selection of Proposals.--(1)(A) The Secretary shall, 
     not later than 3 months after the closing date established by 
     the Secretary for receipt of proposals under subsection (b), 
     select at least 5 proposals to receive financial assistance 
     under this section.
       (B) No one project selected under this section shall 
     receive more than 25 percent of the funds authorized under 
     this section. No more than 3 projects selected under this 
     section shall demonstrate the same battery type.
       (2) In selecting a proposal under this section, the 
     Secretary shall consider--
       (A) the ability of the proposer to acquire the batteries 
     and associated equipment and to successfully manage and 
     conduct the demonstration project, including the reporting 
     requirements set forth in paragraph (3)(B);
       (B) the geographic and climatic diversity of the projects 
     selected;
       (C) the long-term technical and competitive viability of 
     the batteries to be used in the project and of the original 
     manufacturer of such batteries;
       (D) the suitability of the batteries for their intended 
     uses;
       (E) the technical performance of the battery, including the 
     expected additional useful life and the battery's ability to 
     retain energy;
       (F) the environmental effects of the use of and disposal of 
     the batteries proposed to be used in the project selected;
       (G) the extent of involvement of State or local government 
     and other persons in the demonstration project and whether 
     such involvement will--
       (i) permit a reduction of the Federal cost share per 
     project; or
       (ii) otherwise be used to allow the Federal contribution to 
     be provided to demonstrate a greater number of batteries; and
       (H) such other criteria as the Secretary considers 
     appropriate.
       (3) Conditions.--The Secretary shall require that--
       (A) as a part of a demonstration project, the users of the 
     batteries provide to the proposer information regarding the 
     operation, maintenance, performance, and use of the 
     batteries, and the proposer provide such information to the 
     battery manufacturer, for 3 years after the beginning of the 
     demonstration project;
       (B) the proposer provide to the Secretary such information 
     regarding the operation, maintenance, performance, and use of 
     the batteries as the Secretary may request during the period 
     of the demonstration project; and
       (C) the proposer provide at least 50 percent of the costs 
     associated with the proposal.

     SEC. 2133. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary, 
     from amounts authorized under section 2161(a), for purposes 
     of this subtitle--
       (1) $1,000,000 for fiscal year 2002;
       (2) $7,000,000 for fiscal year 2003; and
       (3) $7,000,000 for fiscal year 2004.
     Such appropriations may remain available until expended.

                     Subtitle D--Green School Buses

     SEC. 2141. SHORT TITLE.

       This subtitle may be cited as the ``Clean Green School Bus 
     Act of 2001''.

     SEC. 2142. ESTABLISHMENT OF PILOT PROGRAM.

       (a) Establishment.--The Secretary shall establish a pilot 
     program for awarding grants on a competitive basis to 
     eligible entities for the demonstration and commercial 
     application of alternative fuel school buses and ultra-low 
     sulfur diesel school buses.
       (b) Requirements.--Not later than 3 months after the date 
     of the enactment of this Act, the Secretary shall establish 
     and publish in the Federal register grant requirements on 
     eligibility for assistance, and on implementation of the 
     program established under subsection (a), including 
     certification requirements to ensure compliance with this 
     subtitle.
       (c) Solicitation.--Not later than 6 months after the date 
     of the enactment of this Act, the Secretary shall solicit 
     proposals for grants under this section.
       (d) Eligible Recipients.--A grant shall be awarded under 
     this section only--
       (1) to a local governmental entity responsible for 
     providing school bus service for one or more public school 
     systems; or
       (2) jointly to an entity described in paragraph (1) and a 
     contracting entity that provides school bus service to the 
     public school system or systems.
       (e) Types of Grants.--
       (1) In general.--Grants under this section shall be for the 
     demonstration and commercial application of technologies to 
     facilitate the use of alternative fuel school buses and 
     ultra-low sulfur diesel school buses in lieu of buses 
     manufactured before model year 1977 and diesel-powered buses 
     manufactured before model year 1991.
       (2) No economic benefit.--Other than the receipt of the 
     grant, a recipient of a grant under this section may not 
     receive any economic benefit in connection with the receipt 
     of the grant.
       (3) Priority of grant applications.--The Secretary shall 
     give priority to awarding grants to applicants who can 
     demonstrate the use of alternative fuel buses and ultra-low 
     sulfur diesel school buses in lieu of buses manufactured 
     before model year 1977.
       (f) Conditions of Grant.--A grant provided under this 
     section shall include the following conditions:
       (1) All buses acquired with funds provided under the grant 
     shall be operated as part of the school bus fleet for which 
     the grant was made for a minimum of 5 years.
       (2) Funds provided under the grant may only be used--
       (A) to pay the cost, except as provided in paragraph (3), 
     of new alternative fuel school buses or ultra-low sulfur 
     diesel school buses, including State taxes and contract fees; 
     and
       (B) to provide--
       (i) up to 10 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will only be available to the grant 
     recipient; and
       (ii) up to 15 percent of the price of the alternative fuel 
     buses acquired, for necessary alternative fuel infrastructure 
     if the infrastructure will be available to the grant 
     recipient and to other bus fleets.
       (3) The grant recipient shall be required to provide at 
     least the lesser of 15 percent of the total cost of each bus 
     received or $15,000 per bus.
       (4) In the case of a grant recipient receiving a grant to 
     demonstrate ultra-low sulfur diesel school buses, the grant 
     recipient shall be required to provide documentation to the 
     satisfaction of the Secretary that diesel fuel containing 
     sulfur at not more than 15 parts per million is available for 
     carrying out the purposes of the grant, and a commitment by 
     the applicant to use such fuel in carrying out the purposes 
     of the grant.



       (g) Buses.--Funding under a grant made under this section 
     may be used to demonstrate the use only of new alternative 
     fuel school buses or ultra-low sulfur diesel school buses--
       (1) with a gross vehicle weight of greater than 14,000 
     pounds;
       (2) that are powered by a heavy duty engine;
       (3) that, in the case of alternative fuel school buses, 
     emit not more than--
       (A) for buses manufactured in model years 2001 and 2002, 
     2.5 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (B) for buses manufactured in model years 2003 through 
     2006, 1.8 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (4) that, in the case of ultra-low sulfur diesel school 
     buses, emit not more than--
       (A) for buses manufactured in model years 2001 through 
     2003, 3.0 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter; and
       (B) for buses manufactured in model years 2004 through 
     2006, 2.5 grams per brake horsepower-hour of nonmethane 
     hydrocarbons and oxides of nitrogen and .01 grams per brake 
     horsepower-hour of particulate matter,
     except that under no circumstances shall buses be acquired 
     under this section that emit nonmethane hydrocarbons, oxides 
     of nitrogen, or particulate matter at a rate greater than the 
     best performing technology of ultra-low sulfur diesel school 
     buses commercially available at the time the grant is made.
       (h) Deployment and Distribution.--The Secretary shall seek 
     to the maximum extent practicable to achieve nationwide 
     deployment of alternative fuel school buses through the 
     program under this section, and shall ensure a broad 
     geographic distribution of grant awards, with a goal of no 
     State receiving more than 10 percent of the grant funding 
     made available under this section for a fiscal year.
       (i) Limit on Funding.--The Secretary shall provide not less 
     than 20 percent and not more than 25 percent of the grant 
     funding made available under this section for any fiscal year 
     for the acquisition of ultra-low sulfur diesel school buses.
       (j) Definitions.--For purposes of this section--
       (1) the term ``alternative fuel school bus'' means a bus 
     powered substantially by electricity (including electricity 
     supplied by a fuel cell), or by liquefied natural gas, 
     compressed natural gas, liquefied petroleum gas, hydrogen, 
     propane, or methanol or ethanol at no less than 85 percent by 
     volume; and
       (2) the term ``ultra-low sulfur diesel school bus'' means a 
     school bus powered by diesel fuel which contains sulfur at 
     not more than 15 parts per million.

     SEC. 2143. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION 
                   PROGRAM.

       (a) Establishment of Program.--The Secretary shall 
     establish a program for entering into cooperative agreements 
     with private sector fuel cell bus developers for the 
     development of fuel cell-powered school buses, and 
     subsequently with not less than 2 units of local government 
     using natural gas-powered school buses and such private 
     sector fuel cell bus developers to demonstrate the use of 
     fuel cell-powered school buses.
       (b) Cost Sharing.--The non-Federal contribution for 
     activities funded under this section shall be not less than--
       (1) 20 percent for fuel infrastructure development 
     activities; and

[[Page 23567]]

       (2) 50 percent for demonstration activities and for 
     development activities not described in paragraph (1).
       (c) Funding.--No more than $25,000,000 of the amounts 
     authorized under section 2144 may be used for carrying out 
     this section for the period encompassing fiscal years 2002 
     through 2006.
       (d) Reports to Congress.--Not later than 3 years after the 
     date of the enactment of this Act, and not later than October 
     1, 2006, the Secretary shall transmit to the appropriate 
     congressional committees a report that--
       (1) evaluates the process of converting natural gas 
     infrastructure to accommodate fuel cell-powered school buses; 
     and
       (2) assesses the results of the development and 
     demonstration program under this section.

     SEC. 2144. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     for carrying out this subtitle, to remain available until 
     expended--
       (1) $40,000,000 for fiscal year 2002;
       (2) $50,000,000 for fiscal year 2003;
       (3) $60,000,000 for fiscal year 2004;
       (4) $70,000,000 for fiscal year 2005; and
       (5) $80,000,000 for fiscal year 2006.

            Subtitle E--Next Generation Lighting Initiative

     SEC. 2151. SHORT TITLE.

       This subtitle may be cited as ``Next Generation Lighting 
     Initiative Act''.

     SEC. 2152. DEFINITION.

       In this subtitle, the term ``Lighting Initiative'' means 
     the ``Next Generation Lighting Initiative'' established under 
     section 2153(a).

     SEC. 2153. NEXT GENERATION LIGHTING INITIATIVE.

       (a) Establishment.--The Secretary is authorized to 
     establish a lighting initiative to be known as the ``Next 
     Generation Lighting Initiative'' to research, develop, and 
     conduct demonstration activities on advanced lighting 
     technologies, including white light emitting diodes.
       (b) Research Objectives.--The research objectives of the 
     Lighting Initiative shall be to develop, by 2011, advanced 
     lighting technologies that, compared to incandescent and 
     fluorescent lighting technologies as of the date of the 
     enactment of this Act, are--
       (1) longer lasting;
       (2) more energy-efficient; and
       (3) cost-competitive.

     SEC. 2154. STUDY.

       (a) In General.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary, in consultation 
     with other Federal agencies, as appropriate, shall complete a 
     study on strategies for the development and commercial 
     application of advanced lighting technologies. The Secretary 
     shall request a review by the National Academies of Sciences 
     and Engineering of the study under this subsection, and shall 
     transmit the results of the study to the appropriate 
     congressional committees.
       (b) Requirements.--The study shall--
       (1) develop a comprehensive strategy to implement the 
     Lighting Initiative; and
       (2) identify the research and development, manufacturing, 
     deployment, and marketing barriers that must be overcome to 
     achieve a goal of a 25 percent market penetration by advanced 
     lighting technologies into the incandescent and fluorescent 
     lighting market by the year 2012.
       (c) Implementation.--As soon as practicable after the 
     review of the study under subsection (a) is transmitted to 
     the Secretary by the National Academies of Sciences and 
     Engineering, the Secretary shall adapt the implementation of 
     the Lighting Initiative taking into consideration the 
     recommendations of the National Academies of Sciences and 
     Engineering.

     SEC. 2155. GRANT PROGRAM.

       (a) In General.--Subject to section 2603 of this Act, the 
     Secretary may make merit-based competitive grants to firms 
     and research organizations that conduct research, 
     development, and demonstration projects related to advanced 
     lighting technologies.
       (b) Annual Review.--
       (1) In general.--An annual independent review of the grant-
     related activities of firms and research organizations 
     receiving a grant under this section shall be conducted by a 
     committee appointed by the Secretary under the Federal 
     Advisory Committee Act (5 U.S.C. App.), or, at the request of 
     the Secretary, a committee appointed by the National 
     Academies of Sciences and Engineering.
       (2) Requirements.--Using clearly defined standards 
     established by the Secretary, the review shall assess 
     technology advances and progress toward commercialization of 
     the grant-related activities of firms or research 
     organizations during each fiscal year of the grant program.
       (c) Technical and Financial Assistance.--The national 
     laboratories and other Federal agencies, as appropriate, 
     shall cooperate with and provide technical and financial 
     assistance to firms and research organizations conducting 
     research, development, and demonstration projects carried out 
     under this subtitle.

    Subtitle F--Department of Energy Authorization of Appropriations

     SEC. 2161. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--In addition to amounts 
     authorized to be appropriated under section 2105, section 
     2125, and section 2144, there are authorized to be 
     appropriated to the Secretary for subtitle B, subtitle C, 
     subtitle E, and for Energy Conservation operation and 
     maintenance (including Building Technology, State and 
     Community Sector (Nongrants), Industry Sector, Transportation 
     Sector, Power Technologies, and Policy and Management) 
     $625,000,000 for fiscal year 2002, $700,000,000 for fiscal 
     year 2003, and $800,000,000 for fiscal year 2004, to remain 
     available until expended.
       (b) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Building Technology, State and Community Sector--
       (A) Residential Building Energy Codes;
       (B) Commercial Building Energy Codes;
       (C) Lighting and Appliance Standards;
       (D) Weatherization Assistance Program; or
       (E) State Energy Program; or
       (2) Federal Energy Management Program.

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

     SEC. 2171. SHORT TITLE.

       This subtitle may be cited as the ``Environmental 
     Protection Agency Office of Air and Radiation Authorization 
     Act of 2001''.

     SEC. 2172. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the 
     Administrator for Office of Air and Radiation Climate Change 
     Protection Programs $121,942,000 for fiscal year 2002, 
     $126,800,000 for fiscal year 2003, and $131,800,000 for 
     fiscal year 2004 to remain available until expended, of 
     which--
       (1) $52,731,000 for fiscal year 2002, $54,800,000 for 
     fiscal year 2003, and $57,000,000 for fiscal year 2004 shall 
     be for Buildings;
       (2) $32,441,000 for fiscal year 2002, $33,700,000 for 
     fiscal year 2003, and $35,000,000 for fiscal year 2004 shall 
     be for Transportation;
       (3) $27,295,000 for fiscal year 2002, $28,400,000 for 
     fiscal year 2003, and $29,500,000 for fiscal year 2004 shall 
     be for Industry;
       (4) $1,700,000 for fiscal year 2002, $1,800,000 for fiscal 
     year 2003, and $1,900,000 for fiscal year 2004 shall be for 
     Carbon Removal;
       (5) $2,500,000 for fiscal year 2002, $2,600,000 for fiscal 
     year 2003, and $2,700,000 for fiscal year 2004 shall be for 
     State and Local Climate; and
       (6) $5,275,000 for fiscal year 2002, $5,500,000 for fiscal 
     year 2003, and $5,700,000 for fiscal year 2004 shall be for 
     International Capacity Building.

     SEC. 2173. LIMITS ON USE OF FUNDS.

       (a) Production or Provision of Articles or Services.--None 
     of the funds authorized to be appropriated by this subtitle 
     may be used to produce or provide articles or services for 
     the purpose of selling the articles or services to a person 
     outside the Federal Government, unless the Administrator 
     determines that comparable articles or services are not 
     available from a commercial source in the United States.
       (b) Requests for Proposals.--None of the funds authorized 
     to be appropriated by this subtitle may be used by the 
     Environmental Protection Agency to prepare or initiate 
     Requests for Proposals for a program if the program has not 
     been authorized by Congress.

     SEC. 2174. COST SHARING.

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

     SEC. 2175. LIMITATION ON DEMONSTRATION AND COMMERCIAL 
                   APPLICATIONS OF ENERGY TECHNOLOGY.

       The Administrator shall provide funding for scientific or 
     energy demonstration or commercial application of energy 
     technology programs, projects, or activities of the Office of 
     Air and Radiation only for technologies or processes that can 
     be reasonably expected to yield new, measurable benefits to 
     the cost, efficiency, or performance of the technology or 
     process.

     SEC. 2176. REPROGRAMMING.

       (a) Authority.--The Administrator may use amounts 
     appropriated under this subtitle

[[Page 23568]]

     for a program, project, or activity other than the program, 
     project, or activity for which such amounts were appropriated 
     only if--
       (1) the Administrator has transmitted to the appropriate 
     congressional committees a report described in subsection (b) 
     and a period of 30 days has elapsed after such committees 
     receive the report;
       (2) amounts used for the program, project, or activity do 
     not exceed--
       (A) 105 percent of the amount authorized for the program, 
     project, or activity; or
       (B) $250,000 more than the amount authorized for the 
     program, project, or activity,

     whichever is less; and
       (3) the program, project, or activity has been presented 
     to, or requested of, the Congress by the Administrator.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this subtitle exceed the total 
     amount authorized to be appropriated by this subtitle.
       (2) Funds appropriated pursuant to this subtitle may not be 
     used for an item for which Congress has declined to authorize 
     funds.

     SEC. 2177. BUDGET REQUEST FORMAT.

       The Administrator shall provide to the appropriate 
     congressional committees, to be transmitted at the same time 
     as the Environmental Protection Agency's annual budget 
     request submission, a detailed justification for budget 
     authorization for the programs, projects, and activities for 
     which funds are authorized by this subtitle. Each such 
     document shall include, for the fiscal year for which funding 
     is being requested and for the 2 previous fiscal years--
       (1) a description of, and funding requested or allocated 
     for, each such program, project, or activity;
       (2) an identification of all recipients of funds to conduct 
     such programs, projects, and activities; and
       (3) an estimate of the amounts to be expended by each 
     recipient of funds identified under paragraph (2).

     SEC. 2178. OTHER PROVISIONS.

       (a) Annual Operating Plan and Reports.--The Administrator 
     shall provide simultaneously to the Committee on Science of 
     the House of Representatives--
       (1) any annual operating plan or other operational funding 
     document, including any additions or amendments thereto; and
       (2) any report relating to the environmental research or 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     programs, projects, or activities of the Environmental 
     Protection Agency,

     provided to any committee of Congress.
       (b) Notice of Reorganization.--The Administrator shall 
     provide notice to the appropriate congressional committees 
     not later than 15 days before any reorganization of any 
     environmental research or development, scientific or energy 
     research, development, or demonstration, or commercial 
     application of energy technology program, project, or 
     activity of the Office of Air and Radiation.

          Subtitle H--National Building Performance Initiative

     SEC. 2181. NATIONAL BUILDING PERFORMANCE INITIATIVE.

       (a) Interagency Group.--Not later than 3 months after the 
     date of the enactment of this Act, the Director of the Office 
     of Science and Technology Policy shall establish an 
     Interagency Group responsible for the development and 
     implementation of a National Building Performance Initiative 
     to address energy conservation and research and development 
     and related issues. The National Institute of Standards and 
     Technology shall provide necessary administrative support for 
     the Interagency Group.
       (b) Plan.--Not later than 9 months after the date of the 
     enactment of this Act, the Interagency Group shall transmit 
     to the Congress a multiyear implementation plan describing 
     the Federal role in reducing the costs, including energy 
     costs, of using, owning, and operating commercial, 
     institutional, residential, and industrial buildings by 30 
     percent by 2020. The plan shall include--
       (1) research, development, and demonstration of systems and 
     materials for new construction and retrofit, on the building 
     envelope and components; and
       (2) the collection and dissemination in a usable form of 
     research results and other pertinent information to the 
     design and construction industry, government officials, and 
     the general public.
       (c) National Building Performance Advisory Committee.--A 
     National Building Performance Advisory Committee shall be 
     established to advise on creation of the plan, review 
     progress made under the plan, advise on any improvements that 
     should be made to the plan, and report to the Congress on 
     actions that have been taken to advance the Nation's 
     capability in furtherance of the plan. The members shall 
     include representatives of a broad cross-section of interests 
     such as the research, technology transfer, architectural, 
     engineering, and financial communities; materials and systems 
     suppliers; State, county, and local governments; the 
     residential, multifamily, and commercial sectors of the 
     construction industry; and the insurance industry.
       (d) Report.--The Interagency Group shall, within 90 days 
     after the end of each fiscal year, transmit a report to the 
     Congress describing progress achieved during the preceding 
     fiscal year by government at all levels and by the private 
     sector, toward implementing the plan developed under 
     subsection (b), and including any amendments to the plan.

                       TITLE II--RENEWABLE ENERGY

                          Subtitle A--Hydrogen

     SEC. 2201. SHORT TITLE.

       This subtitle may be cited as the ``Robert S. Walker and 
     George E. Brown, Jr. Hydrogen Energy Act of 2001''.

     SEC. 2202. PURPOSES.

       Section 102(b) of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:
       ``(b) Purposes.--The purposes of this Act are--
       ``(1) to direct the Secretary to conduct research, 
     development, and demonstration activities leading to the 
     production, storage, transportation, and use of hydrogen for 
     industrial, commercial, residential, transportation, and 
     utility applications;
       ``(2) to direct the Secretary to develop a program of 
     technology assessment, information dissemination, and 
     education in which Federal, State, and local agencies, 
     members of the energy, transportation, and other industries, 
     and other entities may participate; and
       ``(3) to develop methods of hydrogen production that 
     minimize adverse environmental impacts, with emphasis on 
     efficient and cost-effective production from renewable energy 
     resources.''.

     SEC. 2203. DEFINITIONS.

       Section 102(c) of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     paragraphs (2) through (4), respectively; and
       (2) by inserting before paragraph (2), as so redesignated 
     by paragraph (1) of this section, the following new 
     paragraph:
       ``(1) `advisory committee' means the advisory committee 
     established under section 108;''.

     SEC. 2204. REPORTS TO CONGRESS.

       Section 103 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 103. REPORTS TO CONGRESS.

       ``(a) Requirement.--Not later than 1 year after the date of 
     the enactment of the Robert S. Walker and George E. Brown, 
     Jr. Hydrogen Energy Act of 2001, and biennially thereafter, 
     the Secretary shall transmit to Congress a detailed report on 
     the status and progress of the programs and activities 
     authorized under this Act.
       ``(b) Contents.--A report under subsection (a) shall 
     include, in addition to any views and recommendations of the 
     Secretary--
       ``(1) an assessment of the extent to which the program is 
     meeting the purposes specified in section 102(b);
       ``(2) a determination of the effectiveness of the 
     technology assessment, information dissemination, and 
     education program established under section 106;
       ``(3) an analysis of Federal, State, local, and private 
     sector hydrogen-related research, development, and 
     demonstration activities to identify productive areas for 
     increased intergovernmental and private-public sector 
     collaboration; and
       ``(4) recommendations of the advisory committee for any 
     improvements needed in the programs and activities authorized 
     by this Act.''.

     SEC. 2205. HYDROGEN RESEARCH AND DEVELOPMENT.

       Section 104 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.

       ``(a) Establishment of Program.--The Secretary shall 
     conduct a hydrogen research and development program relating 
     to production, storage, transportation, and use of hydrogen, 
     with the goal of enabling the private sector to demonstrate 
     the technical feasibility of using hydrogen for industrial, 
     commercial, residential, transportation, and utility 
     applications.
       ``(b) Elements.--In conducting the program authorized by 
     this section, the Secretary shall--
       ``(1) give particular attention to developing an 
     understanding and resolution of critical technical issues 
     preventing the introduction of hydrogen as an energy carrier 
     into the marketplace;
       ``(2) initiate or accelerate existing research and 
     development in critical technical issues

[[Page 23569]]

     that will contribute to the development of more economical 
     hydrogen production, storage, transportation, and use, 
     including critical technical issues with respect to 
     production (giving priority to those production techniques 
     that use renewable energy resources as their primary source 
     of energy for hydrogen production), liquefaction, 
     transmission, distribution, storage, and use (including use 
     of hydrogen in surface transportation); and
       ``(3) survey private sector and public sector hydrogen 
     research and development activities worldwide, and take steps 
     to ensure that research and development activities under this 
     section do not--
       ``(A) duplicate any available research and development 
     results; or
       ``(B) displace or compete with the privately funded 
     hydrogen research and development activities of United States 
     industry.
       ``(c) Evaluation of Technologies.--The Secretary shall 
     evaluate, for the purpose of determining whether to undertake 
     or fund research and development activities under this 
     section, any reasonable new or improved technology that could 
     lead or contribute to the development of economical hydrogen 
     production, storage, transportation, and use.
       ``(d) Research and Development Support.--The Secretary is 
     authorized to arrange for tests and demonstrations and to 
     disseminate to researchers and developers information, data, 
     and other materials necessary to support the research and 
     development activities authorized under this section and 
     other efforts authorized under this Act, consistent with 
     section 106 of this Act.
       ``(e) Competitive Peer Review.--The Secretary shall carry 
     out or fund research and development activities under this 
     section only on a competitive basis using peer review.
       ``(f) Cost Sharing.--For research and development programs 
     carried out under this section, the Secretary shall require a 
     commitment from non-Federal sources of at least 20 percent of 
     the cost of the project. The Secretary may reduce or 
     eliminate the non-Federal requirement under this subsection 
     if the Secretary determines that the research and development 
     is of a basic or fundamental nature.''.

     SEC. 2206. DEMONSTRATIONS.

       Section 105 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) in subsection (a), by striking ``, preferably in self-
     contained locations,'';
       (2) in subsection (b), by striking ``at self-contained 
     sites'' and inserting ``, which shall include a fuel cell bus 
     demonstration program to address hydrogen production, 
     storage, and use in transit bus applications''; and
       (3) in subsection (c), by inserting ``Non-Federal Funding 
     Requirement.--'' after ``(c)''.

     SEC. 2207. TECHNOLOGY TRANSFER.

       Section 106 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 106. TECHNOLOGY ASSESSMENT, INFORMATION DISSEMINATION, 
                   AND EDUCATION PROGRAM.

       ``(a) Program.--The Secretary shall, in consultation with 
     the advisory committee, conduct a program designed to 
     accelerate wider application of hydrogen production, storage, 
     transportation, and use technologies, including application 
     in foreign countries to increase the global market for the 
     technologies and foster global economic development without 
     harmful environmental effects.
       ``(b) Information.--The Secretary, in carrying out the 
     program authorized by subsection (a), shall--
       ``(1) undertake an update of the inventory and assessment, 
     required under section 106(b)(1) of this Act as in effect 
     before the date of the enactment of the Robert S. Walker and 
     George E. Brown, Jr. Hydrogen Energy Act of 2001, of hydrogen 
     technologies and their commercial capability to economically 
     produce, store, transport, or use hydrogen in industrial, 
     commercial, residential, transportation, and utility sector; 
     and
       ``(2) develop, with other Federal agencies as appropriate 
     and industry, an information exchange program to improve 
     technology transfer for hydrogen production, storage, 
     transportation, and use, which may consist of workshops, 
     publications, conferences, and a database for the use by the 
     public and private sectors.''.

     SEC. 2208. COORDINATION AND CONSULTATION.

       Section 107 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended--
       (1) by amending paragraph (1) of subsection (a) to read as 
     follows:
       ``(1) shall establish a central point for the coordination 
     of all hydrogen research, development, and demonstration 
     activities of the Department; and''; and
       (2) by amending subsection (c) to read as follows:
       ``(c) Consultation.--The Secretary shall consult with other 
     Federal agencies as appropriate, and the advisory committee, 
     in carrying out the Secretary's authorities pursuant to this 
     Act.''.

     SEC. 2209. ADVISORY COMMITTEE.

       Section 108 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 108. ADVISORY COMMITTEE.

       ``(a) Establishment.--The Secretary shall enter into 
     appropriate arrangements with the National Academies of 
     Sciences and Engineering to establish an advisory committee 
     consisting of experts drawn from domestic industry, academia, 
     Governmental laboratories, and financial, environmental, and 
     other organizations, as appropriate, to review and advise on 
     the progress made through the programs and activities 
     authorized under this Act.
       ``(b) Cooperation.--The heads of Federal agencies shall 
     cooperate with the advisory committee in carrying out this 
     section and shall furnish to the advisory committee such 
     information as the advisory committee reasonably deems 
     necessary to carry out this section.
       ``(c) Review.--The advisory committee shall review and make 
     any necessary recommendations to the Secretary on--
       ``(1) the implementation and conduct of programs and 
     activities authorized under this Act; and
       ``(2) the economic, technological, and environmental 
     consequences of the deployment of hydrogen production, 
     storage, transportation, and use systems.
       ``(d) Responsibilities of the Secretary.--The Secretary 
     shall consider, but need not adopt, any recommendations of 
     the advisory committee under subsection (c). The Secretary 
     shall provide an explanation of the reasons that any such 
     recommendations will not be implemented and include such 
     explanation in the report to Congress under section 103(a) of 
     this Act.''.

     SEC. 2210. AUTHORIZATION OF APPROPRIATIONS.

       Section 109 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 is amended to read 
     as follows:

     ``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Research and Development; Advisory Committee.--There 
     are authorized to be appropriated to the Secretary to carry 
     out sections 104 and 108--
       ``(1) $40,000,000 for fiscal year 2002;
       ``(2) $45,000,000 for fiscal year 2003;
       ``(3) $50,000,000 for fiscal year 2004;
       ``(4) $55,000,000 for fiscal year 2005; and
       ``(5) $60,000,000 for fiscal year 2006.
       ``(b) Demonstration.--There are authorized to be 
     appropriated to the Secretary to carry out section 105--
       ``(1) $20,000,000 for fiscal year 2002;
       ``(2) $25,000,000 for fiscal year 2003;
       ``(3) $30,000,000 for fiscal year 2004;
       ``(4) $35,000,000 for fiscal year 2005; and
       ``(5) $40,000,000 for fiscal year 2006.''.

     SEC. 2211. REPEAL.

       (a) Repeal.--Title II of the Hydrogen Future Act of 1996 is 
     repealed.
       (b) Conforming Amendment.--Section 2 of the Hydrogen Future 
     Act of 1996 is amended by striking ``titles II and III'' and 
     inserting ``title III''.

                         Subtitle B--Bioenergy

     SEC. 2221. SHORT TITLE.

       This subtitle may be cited as the ``Bioenergy Act of 
     2001''.

     SEC. 2222. FINDINGS.

       Congress finds that bioenergy has potential to help--
       (1) meet the Nation's energy needs;
       (2) reduce reliance on imported fuels;
       (3) promote rural economic development;
       (4) provide for productive utilization of agricultural 
     residues and waste materials, and forestry residues and 
     byproducts; and
       (5) protect the environment.

     SEC. 2223. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``bioenergy'' means energy derived from any 
     organic matter that is available on a renewable or recurring 
     basis, including agricultural crops and trees, wood and wood 
     wastes and residues, plants (including aquatic plants), 
     grasses, residues, fibers, and animal and other organic 
     wastes;
       (2) the term ``biofuels'' includes liquid or gaseous fuels, 
     industrial chemicals, or both;
       (3) the term ``biopower'' includes the generation of 
     electricity or process steam or both; and
       (4) the term ``integrated bioenergy research and 
     development'' includes biopower and biofuels applications.

     SEC. 2224. AUTHORIZATION.

       The Secretary is authorized to conduct environmental 
     research and development, scientific and energy research, 
     development, and demonstration, and commercial application of 
     energy technology programs, projects, and activities related 
     to bioenergy, including biopower energy systems, biofuels 
     energy systems, and integrated bioenergy research and 
     development.

     SEC. 2225. AUTHORIZATION OF APPROPRIATIONS.

       (a) Biopower Energy Systems.--There are authorized to be 
     appropriated to the Secretary for Biopower Energy Systems 
     programs, projects, and activities--
       (1) $45,700,000 for fiscal year 2002;
       (2) $52,500,000 for fiscal year 2003;
       (3) $60,300,000 for fiscal year 2004;
       (4) $69,300,000 for fiscal year 2005; and
       (5) $79,600,000 for fiscal year 2006.
       (b) Biofuels Energy Systems.--There are authorized to be 
     appropriated to the Secretary for biofuels energy systems 
     programs, projects, and activities--

[[Page 23570]]

       (1) $53,500,000 for fiscal year 2002;
       (2) $61,400,000 for fiscal year 2003;
       (3) $70,600,000 for fiscal year 2004;
       (4) $81,100,000 for fiscal year 2005; and
       (5) $93,200,000 for fiscal year 2006.
       (c) Integrated Bioenergy Research and Development.--There 
     are authorized to be appropriated to the Secretary for 
     integrated bioenergy research and development programs, 
     projects, and activities, $49,000,000 for each of the fiscal 
     years 2002 through 2006. Activities funded under this 
     subsection shall be coordinated with ongoing related programs 
     of other Federal agencies, including the Plant Genome Program 
     of the National Science Foundation. Of the funds authorized 
     under this subsection, at least $5,000,000 for each fiscal 
     year shall be for training and education targeted to minority 
     and social disadvantaged farmers and ranchers.
       (d) Integrated Applications.--Amounts authorized to be 
     appropriated under this subtitle may be used to assist in the 
     planning, design, and implementation of projects to convert 
     rice straw and barley grain into biopower or biofuels.

            Subtitle C--Transmission Infrastructure Systems

     SEC. 2241. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, 
                   DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL 
                   APPLICATION.

       (a) In General.--The Secretary shall develop and implement 
     a comprehensive research, development, demonstration, and 
     commercial application program to ensure the reliability, 
     efficiency, and environmental integrity of electrical 
     transmission systems. Such program shall include advanced 
     energy technologies and systems, high capacity 
     superconducting transmission lines and generators, advanced 
     grid reliability and efficiency technologies development, 
     technologies contributing to significant load reductions, 
     advanced metering, load management and control technologies, 
     and technology transfer and education.
       (b) Technology.--In carrying out this subtitle, the 
     Secretary may include research, development, and 
     demonstration on and commercial application of improved 
     transmission technologies including the integration of the 
     following technologies into improved transmission systems:
       (1) High temperature superconductivity.
       (2) Advanced transmission materials.
       (3) Self-adjusting equipment, processes, or software for 
     survivability, security, and failure containment.
       (4) Enhancements of energy transfer over existing lines.
       (5) Any other infrastructure technologies, as appropriate.

     SEC. 2242. PROGRAM PLAN.

       Within 4 months after the date of the enactment of this 
     Act, the Secretary, in consultation with other appropriate 
     Federal agencies, shall prepare and transmit to Congress a 5-
     year program plan to guide activities under this subtitle. In 
     preparing the program plan, the Secretary shall consult with 
     appropriate representatives of the transmission 
     infrastructure systems industry to select and prioritize 
     appropriate program areas. The Secretary shall also seek the 
     advice of utilities, energy services providers, 
     manufacturers, institutions of higher learning, other 
     appropriate State and local agencies, environmental 
     organizations, professional and technical societies, and any 
     other persons as the Secretary considers appropriate.

     SEC. 2243. REPORT.

       Two years after the date of the enactment of this Act, and 
     at 2-year intervals thereafter, the Secretary, in 
     consultation with other appropriate Federal agencies, shall 
     transmit a report to Congress describing the progress made to 
     achieve the purposes of this subtitle and identifying any 
     additional resources needed to continue the development and 
     commercial application of transmission infrastructure 
     technologies.

    Subtitle D--Department of Energy Authorization of Appropriations

     SEC. 2261. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary for Renewable Energy operation 
     and maintenance, including activities under subtitle C, 
     Geothermal Technology Development, Hydropower, Concentrating 
     Solar Power, Photovoltaic Energy Systems, Solar Building 
     Technology Research, Wind Energy Systems, High Temperature 
     Superconducting Research and Development, Energy Storage 
     Systems, Transmission Reliability, International Renewable 
     Energy Program, Renewable Energy Production Incentive 
     Program, Renewable Program Support, National Renewable Energy 
     Laboratory, and Program Direction, and including amounts 
     authorized under the amendment made by section 2210 and 
     amounts authorized under section 2225, $535,000,000 for 
     fiscal year 2002, $639,000,000 for fiscal year 2003, and 
     $683,000,000 for fiscal year 2004, to remain available until 
     expended.
       (b) Wave Powered Electric Generation.--Within the amounts 
     authorized to be appropriated to the Secretary under 
     subsection (a), the Secretary shall carry out a research 
     program, in conjunction with other appropriate Federal 
     agencies, on wave powered electric generation.
       (c) Assessment of Renewable Energy Resources.--
       (1) In general.--Using funds authorized in subsection (a), 
     of this section, the Secretary shall transmit to the 
     Congress, within 1 year after the date of the enactment of 
     this Act, an assessment of all renewable energy resources 
     available within the United States.
       (2) 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 believes would be useful in siting renewable energy 
     generation, such as appropriate terrain, population and load 
     centers, nearby energy infrastructure, and location of energy 
     resources.
       (3) 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.
       (4) Sunset.--This subsection shall expire at the end of 
     fiscal year 2004.
       (d) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Departmental Energy Management Program; or
       (2) Renewable Indian Energy Resources.

                       TITLE III--NUCLEAR ENERGY

         Subtitle A--University Nuclear Science and Engineering

     SEC. 2301. SHORT TITLE.

       This subtitle may be cited as ``Department of Energy 
     University Nuclear Science and Engineering Act''.

     SEC. 2302. FINDINGS.

       The Congress finds the following:
       (1) United States university nuclear science and 
     engineering programs are in a state of serious decline, with 
     nuclear engineering enrollment at a 35-year low. Since 1980, 
     the number of nuclear engineering university programs has 
     declined nearly 40 percent, and over two-thirds of the 
     faculty in these programs are 45 years of age or older. Also, 
     since 1980, the number of university research and training 
     reactors in the United States has declined by over 50 
     percent. Most of these reactors were built in the late 1950s 
     and 1960s with 30-year to 40-year operating licenses, and 
     many will require relicensing in the next several years.
       (2) A decline in a competent nuclear workforce, and the 
     lack of adequately trained nuclear scientists and engineers, 
     will affect the ability of the United States to solve future 
     nuclear waste storage issues, operate existing and design 
     future fission reactors in the United States, respond to 
     future nuclear events worldwide, help stem the proliferation 
     of nuclear weapons, and design and operate naval nuclear 
     reactors.
       (3) The Department of Energy's Office of Nuclear Energy, 
     Science and Technology, a principal Federal agency for 
     civilian research in nuclear science and engineering, is well 
     suited to help maintain tomorrow's human resource and 
     training investment in the nuclear sciences and engineering.

     SEC. 2303. DEPARTMENT OF ENERGY PROGRAM.

       (a) Establishment.--The Secretary, through the Office of 
     Nuclear Energy, Science and Technology, shall support a 
     program to maintain the Nation's human resource investment 
     and infrastructure in the nuclear sciences and engineering 
     consistent with the Department's statutory authorities 
     related to civilian nuclear research, development, and 
     demonstration and commercial application of energy 
     technology.
       (b) Duties of the Office of Nuclear Energy, Science and 
     Technology.--In carrying out the program under this subtitle, 
     the Director of the Office of Nuclear Energy, Science and 
     Technology shall--
       (1) develop a robust graduate and undergraduate fellowship 
     program to attract new and talented students;
       (2) assist universities in recruiting and retaining new 
     faculty in the nuclear sciences and engineering through a 
     Junior Faculty Research Initiation Grant Program;
       (3) maintain a robust investment in the fundamental nuclear 
     sciences and engineering through the Nuclear Engineering 
     Education Research Program;
       (4) encourage collaborative nuclear research among 
     industry, national laboratories, and universities through the 
     Nuclear Energy Research Initiative;
       (5) assist universities in maintaining reactor 
     infrastructure; and
       (6) support communication and outreach related to nuclear 
     science and engineering.
       (c) Maintaining University Research and Training Reactors 
     and Associated Infrastructure.--The Secretary, through the 
     Office of Nuclear Energy, Science and Technology, shall 
     provide for the following university research and training 
     reactor infrastructure maintenance and research activities:
       (1) Refueling of university research reactors with low 
     enriched fuels, upgrade of operational instrumentation, and 
     sharing of reactors among universities.
       (2) In collaboration with the United States nuclear 
     industry, assistance, where necessary, in relicensing and 
     upgrading university training reactors as part of a student 
     training program.

[[Page 23571]]

       (3) A university reactor research and training award 
     program that provides for reactor improvements as part of a 
     focused effort that emphasizes research, training, and 
     education.
       (d) University-DOE Laboratory Interactions.--The Secretary, 
     through the Office of Nuclear Energy, Science and Technology, 
     shall develop--
       (1) a sabbatical fellowship program for university faculty 
     to spend extended periods of time at Department of Energy 
     laboratories in the areas of nuclear science and technology; 
     and
       (2) a visiting scientist program in which laboratory staff 
     can spend time in academic nuclear science and engineering 
     departments.
     The Secretary may under subsection (b)(1) provide for 
     fellowships for students to spend time at Department of 
     Energy laboratories in the areas of nuclear science and 
     technology under the mentorship of laboratory staff.
       (e) Operations and Maintenance.--To the extent that the use 
     of a university research reactor is funded under this 
     subtitle, funds authorized under this subtitle may be used to 
     supplement operation of the research reactor during the 
     investigator's proposed effort. The host institution shall 
     provide at least 50 percent of the cost of the reactor's 
     operation.
       (f) Merit Review Required.--All grants, contracts, 
     cooperative agreements, or other financial assistance awards 
     under this subtitle shall be made only after independent 
     merit review.
       (g) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary shall prepare and 
     transmit to the appropriate congressional committees a 5-year 
     plan on how the programs authorized in this subtitle will be 
     implemented. The plan shall include a review of the projected 
     personnel needs in the fields of nuclear science and 
     engineering and of the scope of nuclear science and 
     engineering education programs at the Department and other 
     Federal agencies.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS.

       (a) Total Authorization.--The following sums are authorized 
     to be appropriated to the Secretary, to remain available 
     until expended, for the purposes of carrying out this 
     subtitle:
       (1) $30,200,000 for fiscal year 2002.
       (2) $41,000,000 for fiscal year 2003.
       (3) $47,900,000 for fiscal year 2004.
       (4) $55,600,000 for fiscal year 2005.
       (5) $64,100,000 for fiscal year 2006.
       (b) Graduate and Undergraduate Fellowships.--Of the funds 
     authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(b)(1):
       (1) $3,000,000 for fiscal year 2002.
       (2) $3,100,000 for fiscal year 2003.
       (3) $3,200,000 for fiscal year 2004.
       (4) $3,200,000 for fiscal year 2005.
       (5) $3,200,000 for fiscal year 2006.
       (c) Junior Faculty Research Initiation Grant Program.--Of 
     the funds authorized by subsection (a), the following sums 
     are authorized to be appropriated to carry out section 
     2303(b)(2):
       (1) $5,000,000 for fiscal year 2002.
       (2) $7,000,000 for fiscal year 2003.
       (3) $8,000,000 for fiscal year 2004.
       (4) $9,000,000 for fiscal year 2005.
       (5) $10,000,000 for fiscal year 2006.
       (d) Nuclear Engineering Education Research Program.--Of the 
     funds authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(b)(3):
       (1) $8,000,000 for fiscal year 2002.
       (2) $12,000,000 for fiscal year 2003.
       (3) $13,000,000 for fiscal year 2004.
       (4) $15,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (e) Communication and Outreach Related to Nuclear Science 
     and Engineering.--Of the funds authorized by subsection (a), 
     the following sums are authorized to be appropriated to carry 
     out section 2303(b)(5):
       (1) $200,000 for fiscal year 2002.
       (2) $200,000 for fiscal year 2003.
       (3) $300,000 for fiscal year 2004.
       (4) $300,000 for fiscal year 2005.
       (5) $300,000 for fiscal year 2006.
       (f) Refueling of University Research Reactors and 
     Instrumentation Upgrades.--Of the funds authorized by 
     subsection (a), the following sums are authorized to be 
     appropriated to carry out section 2303(c)(1):
       (1) $6,000,000 for fiscal year 2002.
       (2) $6,500,000 for fiscal year 2003.
       (3) $7,000,000 for fiscal year 2004.
       (4) $7,500,000 for fiscal year 2005.
       (5) $8,000,000 for fiscal year 2006.
       (g) Relicensing Assistance.--Of the funds authorized by 
     subsection (a), the following sums are authorized to be 
     appropriated to carry out section 2303(c)(2):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.
       (h) Reactor Research and Training Award Program.--Of the 
     funds authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 
     2303(c)(3):
       (1) $6,000,000 for fiscal year 2002.
       (2) $10,000,000 for fiscal year 2003.
       (3) $14,000,000 for fiscal year 2004.
       (4) $18,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (i) University-DOE Laboratory Interactions.--Of the funds 
     authorized by subsection (a), the following sums are 
     authorized to be appropriated to carry out section 2303(d):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.

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

     SEC. 2321. PROGRAM.

       (a) In General.--The Secretary, through the Director of the 
     Office of Nuclear Energy, Science and Technology, shall 
     conduct an advanced fuel recycling technology research and 
     development program to further the availability of 
     proliferation-resistant fuel recycling technologies as an 
     alternative to aqueous reprocessing in support of evaluation 
     of alternative national strategies for spent nuclear fuel and 
     the Generation IV advanced reactor concepts, subject to 
     annual review by the Secretary's Nuclear Energy Research 
     Advisory Committee or other independent entity, as 
     appropriate.
       (b) Reports.--The Secretary shall report on the activities 
     of the advanced fuel recycling technology research and 
     development program, as part of the Department's annual 
     budget submission.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $10,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

    Subtitle C--Department of Energy Authorization of Appropriations

     SEC. 2341. NUCLEAR ENERGY RESEARCH INITIATIVE.

       (a) Program.--The Secretary, through the Office of Nuclear 
     Energy, Science and Technology, shall conduct a Nuclear 
     Energy Research Initiative for grants to be competitively 
     awarded and subject to peer review for research relating to 
     nuclear energy.
       (b) Objectives.--The program shall be directed toward 
     accomplishing the objectives of--
       (1) developing advanced concepts and scientific 
     breakthroughs in nuclear fission and reactor technology to 
     address and overcome the principal technical and scientific 
     obstacles to the expanded use of nuclear energy in the United 
     States;
       (2) advancing the state of nuclear technology to maintain a 
     competitive position in foreign markets and a future domestic 
     market;
       (3) promoting and maintaining a United States nuclear 
     science and engineering infrastructure to meet future 
     technical challenges;
       (4) providing an effective means to collaborate on a cost-
     shared basis with international agencies and research 
     organizations to address and influence nuclear technology 
     development worldwide; and
       (5) promoting United States leadership and partnerships in 
     bilateral and multilateral nuclear energy research.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $60,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

     SEC. 2342. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.

       (a) Program.--The Secretary, through the Office of Nuclear 
     Energy, Science and Technology, shall conduct a Nuclear 
     Energy Plant Optimization research and development program 
     jointly with industry and cost-shared by industry by at least 
     50 percent and subject to annual review by the Secretary's 
     Nuclear Energy Research Advisory Committee or other 
     independent entity, as appropriate.
       (b) Objectives.--The program shall be directed toward 
     accomplishing the objectives of--
       (1) managing long-term effects of component aging; and
       (2) improving the efficiency and productivity of existing 
     nuclear power stations.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     section--
       (1) $15,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal years 2003 and 
     2004.

     SEC. 2343. NUCLEAR ENERGY TECHNOLOGIES.

       (a) In General.--The Secretary, through the Office of 
     Nuclear Energy, Science and Technology, shall conduct a study 
     of Generation IV nuclear energy systems, including 
     development of a technology roadmap and performance of 
     research and development necessary to make an informed 
     technical decision regarding the most promising candidates 
     for commercial application.
       (b) Reactor Characteristics.--To the extent practicable, in 
     conducting the study under subsection (a), the Secretary 
     shall study nuclear energy systems that offer the highest 
     probability of achieving the goals for Generation IV nuclear 
     energy systems, including--
       (1) economics competitive with any other generators;

[[Page 23572]]

       (2) enhanced safety features, including passive safety 
     features;
       (3) substantially reduced production of high-level waste, 
     as compared with the quantity of waste produced by reactors 
     in operation on the date of the enactment of this Act;
       (4) highly proliferation-resistant fuel and waste;
       (5) sustainable energy generation including optimized fuel 
     utilization; and
       (6) substantially improved thermal efficiency, as compared 
     with the thermal efficiency of reactors in operation on the 
     date of the enactment of this Act.
       (c) Consultation.--In conducting the study under subsection 
     (a), the Secretary shall consult with appropriate 
     representatives of industry, institutions of higher 
     education, Federal agencies, and international, professional, 
     and technical organizations.
       (d) Report.--
       (1) In general.--Not later than December 31, 2002, the 
     Secretary shall transmit to the appropriate congressional 
     committees a report describing the activities of the 
     Secretary under this section, and plans for research and 
     development leading to a public/private cooperative 
     demonstration of one or more Generation IV nuclear energy 
     systems.
       (2) Contents.--The report shall contain--
       (A) an assessment of all available technologies;
       (B) a summary of actions needed for the most promising 
     candidates to be considered as viable commercial options 
     within the five to ten years after the date of the report, 
     with consideration of regulatory, economic, and technical 
     issues;
       (C) a recommendation of not more than three promising 
     Generation IV nuclear energy system concepts for further 
     development;
       (D) an evaluation of opportunities for public/private 
     partnerships;
       (E) a recommendation for structure of a public/private 
     partnership to share in development and construction costs;
       (F) a plan leading to the selection and conceptual design, 
     by September 30, 2004, of at least one Generation IV nuclear 
     energy system concept recommended under subparagraph (C) for 
     demonstration through a public/private partnership;
       (G) an evaluation of opportunities for siting demonstration 
     facilities on Department of Energy land; and
       (H) a recommendation for appropriate involvement of other 
     Federal agencies.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     and to carry out the recommendations in the report 
     transmitted under subsection (d)--
       (1) $20,000,000 for fiscal year 2002; and
       (2) such sums as are necessary for fiscal year 2003 and 
     fiscal year 2004.

     SEC. 2344. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary to carry out activities 
     authorized under this title for nuclear energy operation and 
     maintenance, including amounts authorized under sections 
     2304(a), 2321(c), 2341(c), 2342(c), and 2343(e), and 
     including Advanced Radioisotope Power Systems, Test Reactor 
     Landlord, and Program Direction, $191,200,000 for fiscal year 
     2002, $199,000,000 for fiscal year 2003, and $207,000,000 for 
     fiscal year 2004, to remain available until expended.
       (b) Construction.--There are authorized to be appropriated 
     to the Secretary--
       (1) $950,000 for fiscal year 2002, $2,200,000 for fiscal 
     year 2003, $1,246,000 for fiscal year 2004, and $1,699,000 
     for fiscal year 2005 for completion of construction of 
     Project 99-E-200, Test Reactor Area Electric Utility Upgrade, 
     Idaho National Engineering and Environmental Laboratory; and
       (2) $500,000 for fiscal year 2002, $500,000 for fiscal year 
     2003, $500,000 for fiscal year 2004, and $500,000 for fiscal 
     year 2005, for completion of construction of Project 95-E-
     201, Test Reactor Area Fire and Life Safety Improvements, 
     Idaho National Engineering and Environmental Laboratory.
       (c) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Nuclear Energy Isotope Support and Production;
       (2) Argonne National Laboratory-West Operations;
       (3) Fast Flux Test Facility; or
       (4) Nuclear Facilities Management.

                        TITLE IV--FOSSIL ENERGY

                            Subtitle A--Coal

     SEC. 2401. COAL AND RELATED TECHNOLOGIES PROGRAMS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $172,000,000 for fiscal 
     year 2002, $179,000,000 for fiscal year 2003, and 
     $186,000,000 for fiscal year 2004, to remain available until 
     expended, for other coal and related technologies research 
     and development programs, which shall include--
       (1) Innovations for Existing Plants;
       (2) Integrated Gasification Combined Cycle;
       (3) advanced combustion systems;
       (4) Turbines;
       (5) Sequestration Research and Development;
       (6) innovative technologies for demonstration;
       (7) Transportation Fuels and Chemicals;
       (8) Solid Fuels and Feedstocks;
       (9) Advanced Fuels Research; and
       (10) Advanced Research.
       (b) Limit on use of Funds.--Notwithstanding subsection (a), 
     no funds may be used to carry out the activities authorized 
     by this section after September 30, 2002, unless the 
     Secretary has transmitted to the Congress the report required 
     by this subsection and 1 month has elapsed since that 
     transmission. The report shall include a plan containing--
       (1) a detailed description of how proposals will be 
     solicited and evaluated, including a list of all activities 
     expected to be undertaken;
       (2) a detailed list of technical milestones for each coal 
     and related technology that will be pursued;
       (3) a description of how the programs authorized in this 
     section will be carried out so as to complement and not 
     duplicate activities authorized under division E.
       (c) Gasification.--The Secretary shall fund at least one 
     gasification project with the funds authorized under this 
     section.

                        Subtitle B--Oil and Gas

     SEC. 2421. PETROLEUM-OIL TECHNOLOGY.

       The Secretary shall conduct a program of research, 
     development, demonstration, and commercial application on 
     petroleum-oil technology. The program shall address--
       (1) Exploration and Production Supporting Research;
       (2) Oil Technology Reservoir Management/Extension; and
       (3) Effective Environmental Protection.

     SEC. 2422. GAS.

       The Secretary shall conduct a program of research, 
     development, demonstration, and commercial application on 
     natural gas technologies. The program shall address--
       (1) Exploration and Production;
       (2) Infrastructure; and
       (3) Effective Environmental Protection.

     SEC. 2423. NATURAL GAS AND OIL DEPOSITS REPORT.

       Two years after the date of the enactment of this Act, and 
     at 2-year intervals thereafter, the Secretary of the 
     Interior, in consultation with other appropriate Federal 
     agencies, shall transmit a report to the Congress assessing 
     the contents of natural gas and oil deposits at existing 
     drilling sites off the coast of Louisiana and Texas.

     SEC. 2424. OIL SHALE RESEARCH.

       There are authorized to be appropriated to the Secretary of 
     Energy for fiscal year 2002 $10,000,000, to be divided 
     equally between grants for research on Eastern oil shale and 
     grants for research on Western oil shale.

        Subtitle C--Ultra-Deepwater and Unconventional Drilling

     SEC. 2441. SHORT TITLE.

       This subtitle may be cited as the ``Natural Gas and Other 
     Petroleum Research, Development, and Demonstration Act of 
     2001''.

     SEC. 2442. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``deepwater'' means water depths greater than 
     200 meters but less than 1,500 meters;
       (2) the term ``Fund'' means the Ultra-Deepwater and 
     Unconventional Gas Research Fund established under section 
     2450;
       (3) the term ``institution of higher education'' has the 
     meaning given that term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001);
       (4) the term ``Research Organization'' means the Research 
     Organization created pursuant to section 2446(a);
       (5) the term ``ultra-deepwater'' means water depths greater 
     than 1,500 meters; and
       (6) the term ``unconventional'' means located in heretofore 
     inaccessible or uneconomic formations on land.

     SEC. 2443. ULTRA-DEEPWATER PROGRAM.

       The Secretary shall establish a program of research, 
     development, and demonstration of ultra-deepwater natural gas 
     and other petroleum exploration and production technologies, 
     in areas currently available for Outer Continental Shelf 
     leasing. The program shall be carried out by the Research 
     Organization as provided in this subtitle.

     SEC. 2444. NATIONAL ENERGY TECHNOLOGY LABORATORY.

       The National Energy Technology Laboratory and the United 
     States Geological Survey, when appropriate, shall carry out 
     programs of long-term research into new natural gas and other 
     petroleum exploration and production technologies and 
     environmental mitigation technologies for production from 
     unconventional and ultra-deepwater resources, including 
     methane hydrates. Such Laboratory shall also conduct a 
     program of research, development, and demonstration of new 
     technologies for the reduction of greenhouse gas emissions 
     from unconventional and ultra-deepwater natural gas or other 
     petroleum exploration and production activities, including 
     sub-sea floor carbon sequestration technologies.

     SEC. 2445. ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary shall, within 3 months 
     after the date of the enactment of this Act, establish an 
     Advisory Committee consisting of 7 members, each having 
     extensive operational knowledge of and experience in the 
     natural gas and other petroleum exploration and production 
     industry

[[Page 23573]]

     who are not Federal Government employees or contractors. A 
     minimum of 4 members shall have extensive knowledge of ultra-
     deepwater natural gas or other petroleum exploration and 
     production technologies, a minimum of 2 members shall have 
     extensive knowledge of unconventional natural gas or other 
     petroleum exploration and production technologies, and at 
     least 1 member shall have extensive knowledge of greenhouse 
     gas emission reduction technologies, including carbon 
     sequestration.
       (b) Function.--The Advisory Committee shall advise the 
     Secretary on the selection of an organization to create the 
     Research Organization and on the implementation of this 
     subtitle.
       (c) Compensation.--Members of the Advisory Committee shall 
     serve without compensation but shall receive travel expenses, 
     including per diem in lieu of subsistence, in accordance with 
     applicable provisions under subchapter I of chapter 57 of 
     title 5, United States Code.
       (d) Administrative Costs.--The costs of activities carried 
     out by the Secretary and the Advisory Committee under this 
     subtitle shall be paid or reimbursed from the Fund.
       (e) Duration of Advisory Committee.--Section 14 of the 
     Federal Advisory Committee Act shall not apply to the 
     Advisory Committee.

     SEC. 2446. RESEARCH ORGANIZATION.

       (a) Selection of Research Organization.--The Secretary, 
     within 6 months after the date of the enactment of this Act, 
     shall solicit proposals from eligible entities for the 
     creation of the Research Organization, and within 3 months 
     after such solicitation, shall select an entity to create the 
     Research Organization.
       (b) Eligible Entities.--Entities eligible to create the 
     Research Organization shall--
       (1) have been in existence as of the date of the enactment 
     of this Act;
       (2) be entities exempt from tax under section 501(c)(3) of 
     the Internal Revenue Code of 1986; and
       (3) be experienced in planning and managing programs in 
     natural gas or other petroleum exploration and production 
     research, development, and demonstration.
       (c) Proposals.--A proposal from an entity seeking to create 
     the Research Organization shall include a detailed 
     description of the proposed membership and structure of the 
     Research Organization.
       (d) Functions.--The Research Organization shall--
       (1) award grants on a competitive basis to qualified--
       (A) research institutions;
       (B) institutions of higher education;
       (C) companies; and
       (D) consortia formed among institutions and companies 
     described in subparagraphs (A) through (C) for the purpose of 
     conducting research, development, and demonstration of 
     unconventional and ultra-deepwater natural gas or other 
     petroleum exploration and production technologies; and
       (2) review activities under those grants to ensure that 
     they comply with the requirements of this subtitle and serve 
     the purposes for which the grant was made.

     SEC. 2447. GRANTS.

       (a) Types of Grants.--
       (1) Unconventional.--The Research Organization shall award 
     grants for research, development, and demonstration of 
     technologies to maximize the value of the Government's 
     natural gas and other petroleum resources in unconventional 
     reservoirs, and to develop technologies to increase the 
     supply of natural gas and other petroleum resources by 
     lowering the cost and improving the efficiency of exploration 
     and production of unconventional reservoirs, while improving 
     safety and minimizing environmental impacts.
       (2) Ultra-deepwater.--The Research Organization shall award 
     grants for research, development, and demonstration of 
     natural gas or other petroleum exploration and production 
     technologies to--
       (A) maximize the value of the Federal Government's natural 
     gas and other petroleum resources in the ultra-deepwater 
     areas;
       (B) increase the supply of natural gas and other petroleum 
     resources by lowering the cost and improving the efficiency 
     of exploration and production of ultra-deepwater reservoirs; 
     and
       (C) improve safety and minimize the environmental impacts 
     of ultra-deepwater developments.
       (3) Ultra-deepwater architecture.--The Research 
     Organization shall award a grant to one or more consortia 
     described in section 2446(d)(1)(D) for the purpose of 
     developing and demonstrating the next generation architecture 
     for ultra-deepwater production of natural gas and other 
     petroleum in furtherance of the purposes stated in paragraph 
     (2)(A) through (C).
       (b) Conditions for Grants.--Grants provided under this 
     section shall contain the following conditions:
       (1) If the grant recipient consists of more than one 
     entity, the recipient shall provide a signed contract agreed 
     to by all participating members clearly defining all rights 
     to intellectual property for existing technology and for 
     future inventions conceived and developed using funds 
     provided under the grant, in a manner that is consistent with 
     applicable laws.
       (2) There shall be a repayment schedule for Federal dollars 
     provided for demonstration projects under the grant in the 
     event of a successful commercialization of the demonstrated 
     technology. Such repayment schedule shall provide that the 
     payments are made to the Secretary with the express intent 
     that these payments not impede the adoption of the 
     demonstrated technology in the marketplace. In the event that 
     such impedance occurs due to market forces or other factors, 
     the Research Organization shall renegotiate the grant 
     agreement so that the acceptance of the technology in the 
     marketplace is enabled.
       (3) Applications for grants for demonstration projects 
     shall clearly state the intended commercial applications of 
     the technology demonstrated.
       (4) The total amount of funds made available under a grant 
     provided under subsection (a)(3) shall not exceed 50 percent 
     of the total cost of the activities for which the grant is 
     provided.
       (5) The total amount of funds made available under a grant 
     provided under subsection (a)(1) or (2) shall not exceed 50 
     percent of the total cost of the activities covered by the 
     grant, except that the Research Organization may elect to 
     provide grants covering a higher percentage, not to exceed 90 
     percent, of total project costs in the case of grants made 
     solely to independent producers.
       (6) An appropriate amount of funds provided under a grant 
     shall be used for the broad dissemination of technologies 
     developed under the grant to interested institutions of 
     higher education, industry, and appropriate Federal and State 
     technology entities to ensure the greatest possible benefits 
     for the public and use of government resources.
       (7) Demonstrations of ultra-deepwater technologies for 
     which funds are provided under a grant may be conducted in 
     ultra-deepwater or deepwater locations.
       (c) Allocation of Funds.--Funds available for grants under 
     this subtitle shall be allocated as follows:
       (1) 15 percent shall be for grants under subsection (a)(1).
       (2) 15 percent shall be for grants under subsection (a)(2).
       (3) 60 percent shall be for grants under subsection (a)(3).
       (4) 10 percent shall be for carrying out section 2444.

     SEC. 2448. PLAN AND FUNDING.

       (a) Transmittal to Secretary.--The Research Organization 
     shall transmit to the Secretary an annual plan proposing 
     projects and funding of activities under each paragraph of 
     section 2447(a).
       (b) Review.--The Secretary shall have 1 month to review the 
     annual plan, and shall approve the plan, if it is consistent 
     with this subtitle. If the Secretary approves the plan, the 
     Secretary shall provide funding as proposed in the plan.
       (c) Disapproval.--If the Secretary does not approve the 
     plan, the Secretary shall notify the Research Organization of 
     the reasons for disapproval and shall withhold funding until 
     a new plan is submitted which the Secretary approves. Within 
     1 month after notifying the Research Organization of a 
     disapproval, the Secretary shall notify the appropriate 
     congressional committees of the disapproval.

     SEC. 2449. AUDIT.

       The Secretary shall retain an independent, commercial 
     auditor to determine the extent to which the funds authorized 
     by this subtitle have been expended in a manner consistent 
     with the purposes of this subtitle. The auditor shall 
     transmit a report annually to the Secretary, who shall 
     transmit the report to the appropriate congressional 
     committees, along with a plan to remedy any deficiencies 
     cited in the report.

     SEC. 2450. FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Ultra-Deepwater 
     and Unconventional Gas Research Fund'' which shall be 
     available for obligation to the extent provided in advance in 
     appropriations Acts for allocation under section 2447(c).
       (b) Funding Sources.--
       (1) Loans from treasury.--There are authorized to be 
     appropriated to the Secretary $900,000,000 for the period 
     encompassing fiscal years 2002 through 2009. Such amounts 
     shall be deposited by the Secretary in the Fund, and shall be 
     considered loans from the Treasury. Income received by the 
     United States in connection with any ultra-deepwater oil and 
     gas leases shall be deposited in the Treasury and considered 
     as repayment for the loans under this paragraph.
       (2) Additional appropriations.--There are authorized to be 
     appropriated to the Secretary such sums as may be necessary 
     for the fiscal years 2002 through 2009, to be deposited in 
     the Fund.
       (3) Oil and gas lease income.--To the extent provided in 
     advance in appropriations Acts, not more than 7.5 percent of 
     the income of the United States from Federal oil and gas 
     leases may be deposited in the Fund for fiscal years 2002 
     through 2009.

     SEC. 2451. SUNSET.

       No funds are authorized to be appropriated for carrying out 
     this subtitle after fiscal year 2009. The Research 
     Organization shall

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     be terminated when it has expended all funds made available 
     pursuant to this subtitle.

                         Subtitle D--Fuel Cells

     SEC. 2461. FUEL CELLS.

       (a) In General.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application on fuel cells. The program shall address--
       (1) Advanced Research;
       (2) Systems Development;
       (3) Vision 21-Hybrids; and
       (4) Innovative Concepts.
       (b) Manufacturing Production and Processes.--In addition to 
     the program under subsection (a), the Secretary, in 
     consultation other Federal agencies, as appropriate, shall 
     establish a program for the demonstration of fuel cell 
     technologies, including fuel cell proton exchange membrane 
     technology, for commercial, residential, and transportation 
     applications. The program shall specifically focus on 
     promoting the application of and improved manufacturing 
     production and processes for fuel cell technologies.
       (c) Authorization of Appropriations.--Within the amounts 
     authorized to be appropriated under section 2481(a), there 
     are authorized to be appropriated to the Secretary for the 
     purpose of carrying out subsection (b), $28,000,000 for each 
     of fiscal years 2002 through 2004.

    Subtitle E--Department of Energy Authorization of Appropriations

     SEC. 2481. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and Maintenance.--There are authorized to be 
     appropriated to the Secretary for operation and maintenance 
     for subtitle B and subtitle D, and for Fossil Energy Research 
     and Development Headquarters Program Direction, Field Program 
     Direction, Plant and Capital Equipment, Cooperative Research 
     and Development, Import/Export Authorization, and Advanced 
     Metallurgical Processes $282,000,000 for fiscal year 2002, 
     $293,000,000 for fiscal year 2003, and $305,000,000 for 
     fiscal year 2004, to remain available until expended.
       (b) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (a) may be used for--
       (1) Gas Hydrates.
       (2) Fossil Energy Environmental Restoration; or
       (3) research, development, demonstration, and commercial 
     application on coal and related technologies, including 
     activities under subtitle A.

                            TITLE V--SCIENCE

                   Subtitle A--Fusion Energy Sciences

     SEC. 2501. SHORT TITLE.

       This subtitle may be cited as the ``Fusion Energy Sciences 
     Act of 2001''.

     SEC. 2502. FINDINGS.

       The Congress finds that--
       (1) economic prosperity is closely linked to an affordable 
     and ample energy supply;
       (2) environmental quality is closely linked to energy 
     production and use;
       (3) population, worldwide economic development, energy 
     consumption, and stress on the environment are all expected 
     to increase substantially in the coming decades;
       (4) the few energy options with the potential to meet 
     economic and environmental needs for the long-term future 
     should be pursued as part of a balanced national energy plan;
       (5) fusion energy is an attractive long-term energy source 
     because of the virtually inexhaustible supply of fuel, and 
     the promise of minimal adverse environmental impact and 
     inherent safety;
       (6) the National Research Council, the President's 
     Committee of Advisers on Science and Technology, and the 
     Secretary of Energy Advisory Board have each recently 
     reviewed the Fusion Energy Sciences Program and each strongly 
     supports the fundamental science and creative innovation of 
     the program, and has confirmed that progress toward the goal 
     of producing practical fusion energy has been excellent, 
     although much scientific and engineering work remains to be 
     done;
       (7) each of these reviews stressed the need for a magnetic 
     fusion burning plasma experiment to address key scientific 
     issues and as a necessary step in the development of fusion 
     energy;
       (8) the National Research Council has also called for a 
     broadening of the Fusion Energy Sciences Program research 
     base as a means to more fully integrate the fusion science 
     community into the broader scientific community; and
       (9) the Fusion Energy Sciences Program budget is inadequate 
     to support the necessary science and innovation for the 
     present generation of experiments, and cannot accommodate the 
     cost of a burning plasma experiment constructed by the United 
     States, or even the cost of key participation by the United 
     States in an international effort.

     SEC. 2503. PLAN FOR FUSION EXPERIMENT.

       (a) Plan for United States Fusion Experiment.--The 
     Secretary, on the basis of full consultation with the Fusion 
     Energy Sciences Advisory Committee and the Secretary of 
     Energy Advisory Board, as appropriate, shall develop a plan 
     for United States construction of a magnetic fusion burning 
     plasma experiment for the purpose of accelerating scientific 
     understanding of fusion plasmas. The Secretary shall request 
     a review of the plan by the National Academy of Sciences, and 
     shall transmit the plan and the review to the Congress by 
     July 1, 2004.
       (b) Requirements of Plan.--The plan described in subsection 
     (a) shall--
       (1) address key burning plasma physics issues; and
       (2) include specific information on the scientific 
     capabilities of the proposed experiment, the relevance of 
     these capabilities to the goal of practical fusion energy, 
     and the overall design of the experiment including its 
     estimated cost and potential construction sites.
       (c) United States Participation in an International 
     Experiment.--In addition to the plan described in subsection 
     (a), the Secretary, on the basis of full consultation with 
     the Fusion Energy Sciences Advisory Committee and the 
     Secretary of Energy Advisory Board, as appropriate, may also 
     develop a plan for United States participation in an 
     international burning plasma experiment for the same purpose, 
     whose construction is found by the Secretary to be highly 
     likely and where United States participation is cost 
     effective relative to the cost and scientific benefits of a 
     domestic experiment described in subsection (a). If the 
     Secretary elects to develop a plan under this subsection, he 
     shall include the information described in subsection (b), 
     and an estimate of the cost of United States participation in 
     such an international experiment. The Secretary shall request 
     a review by the National Academies of Sciences and 
     Engineering of a plan developed under this subsection, and 
     shall transmit the plan and the review to the Congress not 
     later than July 1, 2004.
       (d) Authorization of Research and Development.--The 
     Secretary, through the Fusion Energy Sciences Program, may 
     conduct any research and development necessary to fully 
     develop the plans described in this section.

     SEC. 2504. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.

       Not later than 6 months after the date of the enactment of 
     this Act, the Secretary, in full consultation with FESAC, 
     shall develop and transmit to the Congress a plan for the 
     purpose of ensuring a strong scientific base for the Fusion 
     Energy Sciences Program and to enable the experiments 
     described in section 2503. Such plan shall include as its 
     objectives--
       (1) to ensure that existing fusion research facilities and 
     equipment are more fully utilized with appropriate 
     measurements and control tools;
       (2) to ensure a strengthened fusion science theory and 
     computational base;
       (3) to ensure that the selection of and funding for new 
     magnetic and inertial fusion research facilities is based on 
     scientific innovation and cost effectiveness;
       (4) to improve the communication of scientific results and 
     methods between the fusion science community and the wider 
     scientific community;
       (5) to ensure that adequate support is provided to optimize 
     the design of the magnetic fusion burning plasma experiments 
     referred to in section 2503;
       (6) to ensure that inertial confinement fusion facilities 
     are utilized to the extent practicable for the purpose of 
     inertial fusion energy research and development;
       (7) to develop a roadmap for a fusion-based energy source 
     that shows the important scientific questions, the evolution 
     of confinement configurations, the relation between these two 
     features, and their relation to the fusion energy goal;
       (8) to establish several new centers of excellence, 
     selected through a competitive peer-review process and 
     devoted to exploring the frontiers of fusion science;
       (9) to ensure that the National Science Foundation, and 
     other agencies, as appropriate, play a role in extending the 
     reach of fusion science and in sponsoring general plasma 
     science; and
       (10) to ensure that there be continuing broad assessments 
     of the outlook for fusion energy and periodic external 
     reviews of fusion energy sciences.

     SEC. 2505. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     for the development and review, but not for implementation, 
     of the plans described in this subtitle and for activities of 
     the Fusion Energy Sciences Program $320,000,000 for fiscal 
     year 2002 and $335,000,000 for fiscal year 2003, of which up 
     to $15,000,000 for each of fiscal year 2002 and fiscal year 
     2003 may be used to establish several new centers of 
     excellence, selected through a competitive peer-review 
     process and devoted to exploring the frontiers of fusion 
     science.

                 Subtitle B--Spallation Neutron Source

     SEC. 2521. DEFINITION.

       For the purposes of this subtitle, the term ``Spallation 
     Neutron Source'' means Department Project 99-E-334, Oak Ridge 
     National Laboratory, Oak Ridge, Tennessee.

     SEC. 2522. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Construction Funding.--There are 
     authorized to be appropriated to the Secretary for 
     construction of the Spallation Neutron Source--
       (1) $276,300,000 for fiscal year 2002;
       (2) $210,571,000 for fiscal year 2003;
       (3) $124,600,000 for fiscal year 2004;
       (4) $79,800,000 for fiscal year 2005; and

[[Page 23575]]

       (5) $41,100,000 for fiscal year 2006 for completion of 
     construction.
       (b) Authorization of Other Project Funding.--There are 
     authorized to be appropriated to the Secretary for other 
     project costs (including research and development necessary 
     to complete the project, preoperations costs, and capital 
     equipment not related to construction) of the Spallation 
     Neutron Source $15,353,000 for fiscal year 2002 and 
     $103,279,000 for the period encompassing fiscal years 2003 
     through 2006, to remain available until expended through 
     September 30, 2006.

     SEC. 2523. REPORT.

       The Secretary shall report on the Spallation Neutron Source 
     as part of the Department's annual budget submission, 
     including a description of the achievement of milestones, a 
     comparison of actual costs to estimated costs, and any 
     changes in estimated project costs or schedule.

     SEC. 2524. LIMITATIONS.

       The total amount obligated by the Department, including 
     prior year appropriations, for the Spallation Neutron Source 
     may not exceed--
       (1) $1,192,700,000 for costs of construction;
       (2) $219,000,000 for other project costs; and
       (3) $1,411,700,000 for total project cost.

      Subtitle C--Facilities, Infrastructure, and User Facilities

     SEC. 2541. DEFINITION.

       For purposes of this subtitle--
       (1) the term ``nonmilitary energy laboratory'' means--
       (A) Ames Laboratory;
       (B) Argonne National Laboratory;
       (C) Brookhaven National Laboratory;
       (D) Fermi National Accelerator Laboratory;
       (E) Lawrence Berkeley National Laboratory;
       (F) Oak Ridge National Laboratory;
       (G) Pacific Northwest National Laboratory;
       (H) Princeton Plasma Physics Laboratory;
       (I) Stanford Linear Accelerator Center;
       (J) Thomas Jefferson National Accelerator Facility; or
       (K) any other facility of the Department that the 
     Secretary, in consultation with the Director, Office of 
     Science and the appropriate congressional committees, 
     determines to be consistent with the mission of the Office of 
     Science; and
       (2) the term ``user facility'' means--
       (A) an Office of Science facility at a nonmilitary energy 
     laboratory that provides special scientific and research 
     capabilities, including technical expertise and support as 
     appropriate, to serve the research needs of the Nation's 
     universities, industry, private laboratories, Federal 
     laboratories, and others, including research institutions or 
     individuals from other nations where reciprocal 
     accommodations are provided to United States research 
     institutions and individuals or where the Secretary considers 
     such accommodation to be in the national interest; and
       (B) any other Office of Science funded facility designated 
     by the Secretary as a user facility.

     SEC. 2542. FACILITY AND INFRASTRUCTURE SUPPORT FOR 
                   NONMILITARY ENERGY LABORATORIES.

       (a) Facility Policy.--The Secretary shall develop and 
     implement a least-cost nonmilitary energy laboratory facility 
     and infrastructure strategy for--
       (1) maintaining existing facilities and infrastructure, as 
     needed;
       (2) closing unneeded facilities;
       (3) making facility modifications; and
       (4) building new facilities.
       (b) Plan.--The Secretary shall prepare a comprehensive 10-
     year plan for conducting future facility maintenance, making 
     repairs, modifications, and new additions, and constructing 
     new facilities at each nonmilitary energy laboratory. Such 
     plan shall provide for facilities work in accordance with the 
     following priorities:
       (1) Providing for the safety and health of employees, 
     visitors, and the general public with regard to correcting 
     existing structural, mechanical, electrical, and 
     environmental deficiencies.
       (2) Providing for the repair and rehabilitation of existing 
     facilities to keep them in use and prevent deterioration, if 
     feasible.
       (3) Providing engineering design and construction services 
     for those facilities that require modification or additions 
     in order to meet the needs of new or expanded programs.
       (c) Report.--
       (1) Transmittal.--Within 1 year after the date of the 
     enactment of this Act, the Secretary shall prepare and 
     transmit to the appropriate congressional committees a report 
     containing the plan prepared under subsection (b).
       (2) Contents.--For each nonmilitary energy laboratory, such 
     report shall contain--
       (A) the current priority list of proposed facilities and 
     infrastructure projects, including cost and schedule 
     requirements;
       (B) a current ten-year plan that demonstrates the 
     reconfiguration of its facilities and infrastructure to meet 
     its missions and to address its long-term operational costs 
     and return on investment;
       (C) the total current budget for all facilities and 
     infrastructure funding; and
       (D) the current status of each facilities and 
     infrastructure project compared to the original baseline 
     cost, schedule, and scope.
       (3) Additional elements.--The report shall also--
       (A) include a plan for new facilities and facility 
     modifications at each nonmilitary energy laboratory that will 
     be required to meet the Department's changing missions of the 
     twenty-first century, including schedules and estimates for 
     implementation, and including a section outlining long-term 
     funding requirements consistent with anticipated budgets and 
     annual authorization of appropriations;
       (B) address the coordination of modernization and 
     consolidation of facilities among the nonmilitary energy 
     laboratories in order to meet changing mission requirements; 
     and
       (C) provide for annual reports to the appropriate 
     congressional committees on accomplishments, conformance to 
     schedules, commitments, and expenditures.

     SEC. 2543. USER FACILITIES.

       (a) Notice Requirement.--When the Department makes a user 
     facility available to universities and other potential users, 
     or seeks input from universities and other potential users 
     regarding significant characteristics or equipment in a user 
     facility or a proposed user facility, the Department shall 
     ensure broad public notice of such availability or such need 
     for input to universities and other potential users.
       (b) Competition Requirement.--When the Department considers 
     the participation of a university or other potential user in 
     the establishment or operation of a user facility, the 
     Department shall employ full and open competition in 
     selecting such a participant.
       (c) Prohibition.--The Department may not redesignate a user 
     facility, as defined by section 2541(b) as something other 
     than a user facility for avoid the requirements of 
     subsections (a) and (b).

            Subtitle D--Advisory Panel on Office of Science

     SEC. 2561. ESTABLISHMENT.

       The Director of the Office of Science and Technology 
     Policy, in consultation with the Secretary, shall establish 
     an Advisory Panel on the Office of Science comprised of 
     knowledgeable individuals to--
       (1) address concerns about the current status and the 
     future of scientific research supported by the Office;
       (2) examine alternatives to the current organizational 
     structure of the Office within the Department, taking into 
     consideration existing structures for the support of 
     scientific research in other Federal agencies and the private 
     sector; and
       (3) suggest actions to strengthen the scientific research 
     supported by the Office that might be taken jointly by the 
     Department and Congress.

     SEC. 2562. REPORT.

       Within 6 months after the date of the enactment of this 
     Act, the Advisory Panel shall transmit its findings and 
     recommendations in a report to the Director of the Office of 
     Science and Technology Policy and the Secretary. The Director 
     and the Secretary shall jointly--
       (1) consider each of the Panel's findings and 
     recommendations, and comment on each as they consider 
     appropriate; and
       (2) transmit the Panel's report and the comments of the 
     Director and the Secretary on the report to the appropriate 
     congressional committees within 9 months after the date of 
     the enactment of this Act.

    Subtitle E--Department of Energy Authorization of Appropriations

     SEC. 2581. AUTHORIZATION OF APPROPRIATIONS.

       (a) Operation and maintenance.--Including the amounts 
     authorized to be appropriated for fiscal year 2002 under 
     section 2505 for Fusion Energy Sciences and under section 
     2522(b) for the Spallation Neutron Source, there are 
     authorized to be appropriated to the Secretary for the Office 
     of Science (also including subtitle C, High Energy Physics, 
     Nuclear Physics, Biological and Environmental Research, Basic 
     Energy Sciences (except for the Spallation Neutron Source), 
     Advanced Scientific Computing Research, Energy Research 
     Analysis, Multiprogram Energy Laboratories-Facilities 
     Support, Facilities and Infrastructure, Safeguards and 
     Security, and Program Direction) operation and maintenance 
     $3,299,558,000 for fiscal year 2002, to remain available 
     until expended.
       (b) Research Regarding Precious Metal Catalysis.--Within 
     the amounts authorized to be appropriated to the Secretary 
     under subsection (a), $5,000,000 for fiscal year 2002 may be 
     used to carry out research in the use of precious metals 
     (excluding platinum, palladium, and rhodium) in catalysis, 
     either directly though national laboratories, or through the 
     award of grants, cooperative agreements, or contracts with 
     public or nonprofit entities.
       (c) Construction.--In addition to the amounts authorized to 
     be appropriated under section 2522(a) for construction of the 
     Spallation Neutron Source, there are authorized to be 
     appropriated to the Secretary for Science--
       (1) $19,400,000 for fiscal year 2002, $14,800,000 for 
     fiscal year 2003, and $8,900,000 for fiscal year 2004 for 
     completion of constuction of

[[Page 23576]]

     Project 98-G-304, Neutrinos at the Main Injector, Fermi 
     National Accelerator Laboratory;
       (2) $11,405,000 for fiscal year 2002 for completion of 
     construction of Project 01-E-300, Laboratory for Comparative 
     and Functional Genomics, Oak Ridge National Laboratory;
       (3) $4,000,000 for fiscal year 2002, $8,000,000 for fiscal 
     year 2003, and $2,000,000 for fiscal year 2004 for completion 
     of construction of Project 02-SC-002, Project Engineering 
     Design (PED), Various Locations;
       (4) $3,183,000 for fiscal year 2002 for completion of 
     construction of Project 02-SC-002, Multiprogram Energy 
     Laboratories Infrastructure Project Engineering Design (PED), 
     Various Locations; and
       (5) $18,633,000 for fiscal year 2002 and $13,029,000 for 
     fiscal year 2003 for completion of construction of Project 
     MEL-001, Multiprogram Energy Laboratories, Infrastructure, 
     Various Locations.
       (d) Limits on Use of Funds.--None of the funds authorized 
     to be appropriated in subsection (c) may be used for 
     construction at any national security laboratory as defined 
     in section 3281(1) of the National Defense Authorization Act 
     for Fiscal Year 2000 (50 U.S.C. 2471(1)) or at any nuclear 
     weapons production facility as defined in section 3281(2) of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (50 U.S.C. 2471(2)).

                        TITLE VI--MISCELLANEOUS

      Subtitle A--General Provisions for the Department of Energy

     SEC. 2601. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
                   COMMERCIAL APPLICATION OF ENERGY TECHNOLOGY 
                   PROGRAMS, PROJECTS, AND ACTIVITIES.

       (a) Authorized Activities.--Except as otherwise provided in 
     this division, research, development, demonstration, and 
     commercial application programs, projects, and activities for 
     which appropriations are authorized under this division may 
     be carried out under the procedures of the Federal Nonnuclear 
     Energy Research and Development Act of 1974 (42 U.S.C. 5901 
     et seq.), the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
     seq.), or any other Act under which the Secretary is 
     authorized to carry out such programs, projects, and 
     activities, but only to the extent the Secretary is 
     authorized to carry out such activities under each such Act.
       (b) Authorized Agreements.--Except as otherwise provided in 
     this division, in carrying out research, development, 
     demonstration, and commercial application programs, projects, 
     and activities for which appropriations are authorized under 
     this division, the Secretary 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, 
     and any other form of agreement available to the Secretary.
       (c) Definition.--For purposes of this section, the term 
     ``joint venture'' has the meaning given that term under 
     section 2 of the National Cooperative Research and Production 
     Act of 1993 (15 U.S.C. 4301), except that such term may apply 
     under this section to research, development, demonstration, 
     and commercial application of energy technology joint 
     ventures.
       (d) Protection of Information.--Section 12(c)(7) of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a(c)(7)), relating to the protection of information, 
     shall apply to research, development, demonstration, and 
     commercial application of energy technology programs, 
     projects, and activities for which appropriations are 
     authorized under this division.
       (e) Inventions.--An invention conceived and developed by 
     any person using funds provided through a grant under this 
     division shall be considered a subject invention for the 
     purposes of chapter 18 of title 35, United States Code 
     (commonly referred to as the Bayh-Dole Act).
       (f) Outreach.--The Secretary shall ensure that each program 
     authorized by this division includes an outreach component to 
     provide information, as appropriate, to manufacturers, 
     consumers, engineers, architects, builders, energy service 
     companies, universities, facility planners and managers, 
     State and local governments, and other entities.
       (g) Guidelines and Procedures.--The Secretary shall provide 
     guidelines and procedures for the transition, where 
     appropriate, of energy technologies from research through 
     development and demonstration to commercial application of 
     energy technology. Nothing in this section shall preclude the 
     Secretary from--
       (1) entering into a contract, cooperative agreement, 
     cooperative research and development agreement under the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3701 et seq.), grant, joint venture, or any other form of 
     agreement available to the Secretary under this section that 
     relates to research, development, demonstration, and 
     commercial application of energy technology; or
       (2) extending a contract, cooperative agreement, 
     cooperative research and development agreement under the 
     Stevenson-Wydler Technology Innovation Act of 1980, grant, 
     joint venture, or any other form of agreement available to 
     the Secretary that relates to research, development, and 
     demonstration to cover commercial application of energy 
     technology.
       (h) Application of Section.--This section shall not apply 
     to any contract, cooperative agreement, cooperative research 
     and development agreement under the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.), 
     grant, joint venture, or any other form of agreement 
     available to the Secretary that is in effect as of the date 
     of the enactment of this Act.

     SEC. 2602. LIMITS ON USE OF FUNDS.

       (a) Management and Operating Contracts.--
       (1) Competitive procedure requirement.--None of the funds 
     authorized to be appropriated to the Secretary by this 
     division may be used to award a management and operating 
     contract for a federally owned or operated nonmilitary energy 
     laboratory of the Department unless such contract is awarded 
     using competitive procedures or the Secretary grants, on a 
     case-by-case basis, a waiver to allow for such a deviation. 
     The Secretary may not delegate the authority to grant such a 
     waiver.
       (2) Congressional notice.--At least 2 months before a 
     contract award, amendment, or modification for which the 
     Secretary intends to grant such a waiver, the Secretary shall 
     submit to the appropriate congressional committees a report 
     notifying the committees of the waiver and setting forth the 
     reasons for the waiver.
       (b) Production or Provision of Articles or Services.--None 
     of the funds authorized to be appropriated to the Secretary 
     by this division may be used to produce or provide articles 
     or services for the purpose of selling the articles or 
     services to a person outside the Federal Government, unless 
     the Secretary determines that comparable articles or services 
     are not available from a commercial source in the United 
     States.
       (c) Requests for Proposals.--None of the funds authorized 
     to be appropriated to the Secretary by this division may be 
     used by the Department to prepare or initiate Requests for 
     Proposals for a program if the program has not been 
     authorized by Congress.

     SEC. 2603. COST SHARING.

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

     SEC. 2604. LIMITATION ON DEMONSTRATION AND COMMERCIAL 
                   APPLICATION OF ENERGY TECHNOLOGY.

       Except as otherwise provided in this division, the 
     Secretary shall provide funding for scientific or energy 
     demonstration and commercial application of energy technology 
     programs, projects, or activities only for technologies or 
     processes that can be reasonably expected to yield new, 
     measurable benefits to the cost, efficiency, or performance 
     of the technology or process.

     SEC. 2605. REPROGRAMMING.

       (a) Authority.--The Secretary may use amounts appropriated 
     under this division for a program, project, or activity other 
     than the program, project, or activity for which such amounts 
     were appropriated only if--
       (1) the Secretary has transmitted to the appropriate 
     congressional committees a report described in subsection (b) 
     and a period of 30 days has elapsed after such committees 
     receive the report;
       (2) amounts used for the program, project, or activity do 
     not exceed--
       (A) 105 percent of the amount authorized for the program, 
     project, or activity; or
       (B) $250,000 more than the amount authorized for the 
     program, project, or activity,
     whichever is less; and
       (3) the program, project, or activity has been presented 
     to, or requested of, the Congress by the Secretary.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.

[[Page 23577]]

       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated by the Secretary pursuant to this division 
     exceed the total amount authorized to be appropriated to the 
     Secretary by this division.
       (2) Funds appropriated to the Secretary pursuant to this 
     division may not be used for an item for which Congress has 
     declined to authorize funds.

               Subtitle B--Other Miscellaneous Provisions

     SEC. 2611. NOTICE OF REORGANIZATION.

       The Secretary shall provide notice to the appropriate 
     congressional committees not later than 15 days before any 
     reorganization of any environmental research or development, 
     scientific or energy research, development, or demonstration, 
     or commercial application of energy technology program, 
     project, or activity of the Department.

     SEC. 2612. LIMITS ON GENERAL PLANT PROJECTS.

       If, at any time during the construction of a civilian 
     environmental research and development, scientific or energy 
     research, development, or demonstration, or commercial 
     application of energy technology project of the Department 
     for which no specific funding level is provided by law, the 
     estimated cost (including any revision thereof) of the 
     project exceeds $5,000,000, the Secretary may not continue 
     such construction unless the Secretary has furnished a 
     complete report to the appropriate congressional committees 
     explaining the project and the reasons for the estimate or 
     revision.

     SEC. 2613. LIMITS ON CONSTRUCTION PROJECTS.

       (a) Limitation.--Except as provided in subsection (b), 
     construction on a civilian environmental research and 
     development, scientific or energy research, development, or 
     demonstration, or commercial application of energy technology 
     project of the Department for which funding has been 
     specifically provided by law may not be started, and 
     additional obligations may not be incurred in connection with 
     the project above the authorized funding amount, whenever the 
     current estimated cost of the construction project exceeds by 
     more than 10 percent the higher of--
       (1) the amount authorized for the project, if the entire 
     project has been funded by the Congress; or
       (2) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (b) Notice.--An action described in subsection (a) may be 
     taken if--
       (1) the Secretary has submitted to the appropriate 
     congressional committees a report on the proposed actions and 
     the circumstances making such actions necessary; and
       (2) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (c) Exclusion.--In the computation of the 30-day period 
     described in subsection (b)(2), there shall be excluded any 
     day on which either House of Congress is not in session 
     because of an adjournment of more than 3 days to a day 
     certain.
       (d) Exception.--Subsections (a) and (b) shall not apply to 
     any construction project that has a current estimated cost of 
     less than $5,000,000.

     SEC. 2614. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a civilian environmental 
     research and development, scientific or energy research, 
     development, or demonstration, or commercial application of 
     energy technology program, project, or activity of the 
     Department, the Secretary shall complete a conceptual design 
     for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $750,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds for a construction project, the total 
     estimated cost of which is less than $5,000,000.
       (b) Authority for Construction Design.--(1) The Secretary 
     may carry out construction design (including architectural 
     and engineering services) in connection with any proposed 
     construction project that is in support of a civilian 
     environmental research and development, scientific or energy 
     research, development, and demonstration, or commercial 
     application of energy technology program, project, or 
     activity of the Department if the total estimated cost for 
     such design does not exceed $250,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project described in 
     paragraph (1) exceeds $250,000, funds for such design must be 
     specifically authorized by law.

     SEC. 2615. NATIONAL ENERGY POLICY DEVELOPMENT GROUP MANDATED 
                   REPORTS.

       (a) The Secretary's Review of Energy Efficiency Renewable 
     Energy, and Alternative Energy Research and Development.--
     Upon completion of the Secretary's review of current funding 
     and historic performance of the Department's energy 
     efficiency, renewable energy, and alternative energy research 
     and development programs in response to the recommendations 
     of the May 16, 2001, Report of the National Energy Policy 
     Development Group, the Secretary shall transmit a report 
     containing the results of such review to the appropriate 
     congressional committees.
       (b) Review and Recommendations on Using the Nation's Energy 
     Resources More Efficiently.--Upon completion of the Office of 
     Science and Technology Policy and the President's Council of 
     Advisors on Science and Technology reviewing and making 
     recommendations on using the Nation's energy resources more 
     efficiently, in response to the recommendation of the May 16, 
     2001, Report of the National Energy Policy Development Group, 
     the Director of the Office of Science and Technology Policy 
     shall transmit a report containing the results of such review 
     and recommendations to the appropriate congressional 
     committees.

     SEC. 2616. PERIODIC REVIEWS AND ASSESSMENTS.

       The Secretary shall enter into appropriate arrangements 
     with the National Academies of Sciences and Engineering to 
     ensure that there be periodic reviews and assessments of the 
     programs authorized by this division, as well as the 
     measurable cost and performance-based goals for such programs 
     as established under section 2004, and the progress on 
     meeting such goals. Such reviews and assessments shall be 
     conducted at least every 5 years, or more often as the 
     Secretary considers necessary, and the Secretary shall 
     transmit to the appropriate congressional committees reports 
     containing the results of such reviews and assessments.

                               DIVISION D

     SEC. 4101. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE 
                   HOUSING.

       Section 4(b) of the HUD Demonstration Act of 1993 (42 
     U.S.C. 9816 note) is amended--
       (1) in paragraph (1), by inserting before the semicolon at 
     the end the following: ``, including capabilities regarding 
     the provision of energy efficient, affordable housing and 
     residential energy conservation measures''; and
       (2) in paragraph (2), by inserting before the semicolon the 
     following: ``, including such activities relating to the 
     provision of energy efficient, affordable housing and 
     residential energy conservation measures that benefit low-
     income families''.

     SEC. 4102. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY 
                   CONSERVATION AND EFFICIENCY ACTIVITIES.

       Section 105(a)(8) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5305(a)(8)) is amended--
       (1) by inserting ``or efficiency'' after ``energy 
     conservation'';
       (2) by striking ``, and except that'' and inserting ``; 
     except that''; and
       (3) by inserting before the period at the end the 
     following: ``; and except that each percentage limitation 
     under this paragraph on the amount of assistance provided 
     under this title that may be used for the provision of public 
     services is hereby increased by 10 percent, but such 
     percentage increase may be used only for the provision of 
     public services concerning energy conservation or 
     efficiency''.

     SEC. 4103. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY 
                   EFFICIENT HOUSING.

       (a) Single Family Housing Mortgage Insurance.--Section 
     203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) 
     is amended, in the first undesignated paragraph beginning 
     after subparagraph (B)(iii) (relating to solar energy 
     systems)--
       (1) by inserting ``or paragraph (10)''; and
       (2) by striking ``20 percent'' and inserting ``30 
     percent''.
       (b) Multifamily Housing Mortgage Insurance.--Section 207(c) 
     of the National Housing Act (12 U.S.C. 1713(c)) is amended, 
     in the second undesignated paragraph beginning after 
     paragraph (3) (relating to solar energy systems and 
     residential energy conservation measures), by striking ``20 
     percent'' and inserting ``30 percent''.
       (c) Cooperative Housing Mortgage Insurance.--Section 213(p) 
     of the National Housing Act (12 U.S.C. 1715e(p)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.
       (d) Rehabilitation and Neighborhood Conservation Housing 
     Mortgage Insurance.--Section 220(d)(3)(B)(iii) of the 
     National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is 
     amended by striking ``20 per centum'' and inserting ``30 
     percent''.
       (e) Low-Income Multifamily Housing Mortgage Insurance.--
     Section 221(k) of the National Housing Act (12 U.S.C. 
     1715l(k)) is amended by striking ``20 per centum'' and 
     inserting ``30 percent''.
       (f) Elderly Housing Mortgage Insurance.--The proviso at the 
     end of section 213(c)(2) of the National Housing Act (12 
     U.S.C. 1715v(c)(2)) is amended by striking ``20 per centum'' 
     and inserting ``30 percent''.
       (g) Condominium Housing Mortgage Insurance.--Section 234(j) 
     of the National Housing Act (12 U.S.C. 1715y(j)) is amended 
     by striking ``20 per centum'' and inserting ``30 percent''.

     SEC. 4104. PUBLIC HOUSING CAPITAL FUND.

       Section 9(d)(1) of the United States Housing Act of 1937 
     (42 U.S.C. 1437g(d)(1)) is amended--

[[Page 23578]]

       (1) in subparagraph (I), by striking ``and'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(L) improvement of energy and water-use efficiency by 
     installing fixtures and fittings that conform to the American 
     Society of Mechanical Engineers/American National Standards 
     Institute standards A112.19.2-1998 and A112.18.1-2000, or any 
     revision thereto, applicable at the time of installation, and 
     by increasing energy efficiency and water conservation by 
     such other means as the Secretary determines are 
     appropriate.''.

     SEC. 4105. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR 
                   ASSISTED HOUSING.

       Section 251(b)(1) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8231(1)) is amended--
       (1) by striking ``financed with loans'' and inserting 
     ``assisted'';
       (2) by inserting after ``1959,'' the following: ``which are 
     eligible multifamily housing projects (as such term is 
     defined in section 512 of the Multifamily Assisted Housing 
     Reform and Affordability Act of 1997 (42 U.S.C. 1437f note)) 
     and are subject to a mortgage restructuring and rental 
     assistance sufficiency plans under such Act,''; and
       (3) by inserting after the period at the end of the first 
     sentence the following new sentence: ``Such improvements may 
     also include the installation of energy and water conserving 
     fixtures and fittings that conform to the American Society of 
     Mechanical Engineers/American National Standards Institute 
     standards A112.19.2-1998 and A112.18.1-2000, or any revision 
     thereto, applicable at the time of installation.''.

     SEC. 4106. NORTH AMERICAN DEVELOPMENT BANK.

       Part 2 of subtitle D of title V of the North American Free 
     Trade Agreement Implementation Act (22 U.S.C. 290m-290m-3) is 
     amended by adding at the end the following:

     ``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

       ``Consistent with the focus of the Bank's Charter on 
     environmental infrastructure projects, the Board members 
     representing the United States should use their voice and 
     vote to encourage the Bank to finance projects related to 
     clean and efficient energy, including energy conservation, 
     that prevent, control, or reduce environmental pollutants or 
     contaminants.''.

                               DIVISION E

     SEC. 5000. SHORT TITLE.

       This division may be cited as the ``Clean Coal Power 
     Initiative Act of 2001''.

     SEC. 5001. FINDINGS.

       Congress finds that--
       (1) reliable, affordable, increasingly clean electricity 
     will continue to power the growing United States economy;
       (2) an increasing use of electrotechnologies, the desire 
     for continuous environmental improvement, a more competitive 
     electricity market, and concerns about rising energy prices 
     add importance to the need for reliable, affordable, 
     increasingly clean electricity;
       (3) coal, which, as of the date of the enactment of this 
     Act, accounts for more than \1/2\ of all electricity 
     generated in the United States, is the most abundant fossil 
     energy resource of the United States;
       (4) coal comprises more than 85 percent of all fossil 
     resources in the United States and exists in quantities 
     sufficient to supply the United States for 250 years at 
     current usage rates;
       (5) investments in electricity generating facility 
     emissions control technology over the past 30 years have 
     reduced the aggregate emissions of pollutants from coal-based 
     generating facilities by 21 percent, even as coal use for 
     electricity generation has nearly tripled;
       (6) continuous improvement in efficiency and environmental 
     performance from electricity generating facilities would 
     allow continued use of coal and preserve less abundant energy 
     resources for other energy uses;
       (7) new ways to convert coal into electricity can 
     effectively eliminate health-threatening emissions and 
     improve efficiency by as much as 50 percent, but initial 
     deployment of new coal generation methods and equipment 
     entails significant risk that generators may be unable to 
     accept in a newly competitive electricity market; and
       (8) continued environmental improvement in coal-based 
     generation and increasing the production and supply of power 
     generation facilities with less air emissions, with the 
     ultimate goal of near-zero emissions, is important and 
     desirable.

     SEC. 5002. DEFINITIONS.

       In this division:
       (1) Cost and performance goals.--The term ``cost and 
     performance goals'' means the cost and performance goals 
     established under section 5004.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 5003. CLEAN COAL POWER INITIATIVE.

       (a) In General.--The Secretary shall carry out a program 
     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 XIII of the Energy Policy Act of 1992 (42 U.S.C. 
     13331 et seq.),
     to achieve cost and performance goals established by the 
     Secretary under section 5004.

     SEC. 5004. COST AND PERFORMANCE GOALS.

       (a) Review and Assessment.--The Secretary shall perform an 
     assessment that establishes measurable cost and performance 
     goals for 2005, 2010, 2015, and 2020 for the programs 
     authorized by this division. Such assessment shall be based 
     on the latest scientific, economic, and technical knowledge.
       (b) Consultation.--In establishing the 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 advanced coal-based equipment;
       (6) institutions of higher learning, national laboratories, 
     and professional and technical societies;
       (7) organizations representing workers;
       (8) organizations formed to--
       (A) promote the use of coal;
       (B) further the goals of environmental protection; and
       (C) promote the production and generation of coal-based 
     power from advanced facilities; and
       (9) other appropriate Federal and State agencies.
       (c) Timing.--The Secretary shall--
       (1) not later than 120 days after the date of the 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 the enactment 
     of this Act, after taking into consideration any public 
     comments received, submit to the Committee on Energy and 
     Commerce and the Committee on Science of the House of 
     Representatives, and to the Senate, the final cost and 
     performance goals.

     SEC. 5005. AUTHORIZATION OF APPROPRIATIONS.

       (a) Clean Coal Power Initiative.--Except as provided in 
     subsection (b), there are authorized to be appropriated to 
     the Secretary to carry out the Clean Coal Power Initiative 
     under section 5003 $200,000,000 for each of the fiscal years 
     2002 through 2011, to remain available until expended.
       (b) Limit on use of Funds.--Notwithstanding subsection (a), 
     no funds may be used to carry out the activities authorized 
     by this Act after September 30, 2002, unless the Secretary 
     has transmitted to the Committee on Energy and Commerce and 
     the Committee on Science of the House of Representatives, and 
     to the Senate, the report required by this subsection and 1 
     month has elapsed since that transmission. The report shall 
     include, with respect to subsection (a), a 10-year plan 
     containing--
       (1) a detailed assessment of whether the aggregate funding 
     levels provided under subsection (a) are the appropriate 
     funding levels for that program;
       (2) a detailed description of how proposals will be 
     solicited and evaluated, including a list of all activities 
     expected to be undertaken;
       (3) a detailed list of technical milestones for each coal 
     and related technology that will be pursued;
       (4) recommendations for a mechanism for recoupment of 
     Federal funding for successful commercial projects; and
       (5) a detailed description of how the program will avoid 
     problems enumerated in General Accounting Office reports on 
     the Clean Coal Technology Program, including problems that 
     have resulted in unspent funds and projects that failed 
     either financially or scientifically.
       (c) Applicability.--Subsection (b) shall not apply to any 
     project begun before September 30, 2002.

     SEC. 5006. PROJECT CRITERIA.

       (a) In General.--The Secretary shall not provide funding 
     under this division for any project that does not advance 
     efficiency, environmental performance, and cost 
     competitiveness well beyond the level of technologies that 
     are in operation or have been demonstrated as of the date of 
     the enactment of this Act.
       (b) Technical Criteria for Clean Coal Power Initiative.--
       (1) Gasification.--(A) In allocating the funds authorized 
     under section 5005(a), the Secretary shall ensure that at 
     least 80 percent of the funds are used only for projects on 
     coal-based gasification technologies, including gasification 
     combined cycle, gasification fuel cells, gasification 
     coproduction and hybrid gasification/combustion.
       (B) The Secretary shall set technical milestones specifying 
     emissions levels that coal gasification projects must be 
     designed to and reasonably expected to achieve. The 
     milestones shall get more restrictive through the life of the 
     program. The milestones shall be designed to achieve by 2020 
     coal gasification projects able--
       (i) to remove 99 percent of sulfur dioxide;
       (ii) to emit no more than .05 lbs of NOx per million BTU;
       (iii) to achieve substantial reductions in mercury 
     emissions; and
       (iv) to achieve a thermal efficiency of 60 percent (higher 
     heating value).

[[Page 23579]]

       (2) Other projects.--For projects not described in 
     paragraph (1), the Secretary shall set technical milestones 
     specifying emissions levels that the projects must be 
     designed to and reasonably expected to achieve. The 
     milestones shall get more restrictive through the life of the 
     program. The milestones shall be designed to achieve by 2010 
     projects able--
       (A) to remove 97 percent of sulfur dioxide;
       (B) to emit no more than .08 lbs of NOx per million BTU;
       (C) to achieve substantial reductions in mercury emissions; 
     and
       (D) to achieve a thermal efficiency of 45 percent (higher 
     heating value).
       (c) Financial Criteria.--The Secretary shall not provide a 
     funding award under this division unless the recipient has 
     documented to the satisfaction of the Secretary that--
       (1) the award recipient is financially viable without the 
     receipt of additional Federal funding;
       (2) the recipient will provide sufficient information to 
     the Secretary for the Secretary to ensure that the award 
     funds are spent efficiently and effectively; and
       (3) a market exists for the technology being demonstrated 
     or applied, as evidenced by statements of interest in writing 
     from potential purchasers of the technology.
       (d) Financial Assistance.--The Secretary shall provide 
     financial assistance to projects that meet the requirements 
     of subsections (a), (b), and (c) and are likely to--
       (1) achieve overall cost reductions in the utilization of 
     coal to generate useful forms of energy;
       (2) improve the competitiveness of coal among various forms 
     of energy in order to maintain a diversity of fuel choices in 
     the United States to meet electricity generation 
     requirements; and
       (3) demonstrate methods and equipment that are applicable 
     to 25 percent of the electricity generating facilities that 
     use coal as the primary feedstock as of the date of the 
     enactment of this Act.
       (e) Federal Share.--The Federal share of the cost of a coal 
     or related technology project funded by the Secretary shall 
     not exceed 50 percent.
       (f) Applicability.--Neither the use of any particular 
     technology, nor the achievement of any emission reduction, by 
     any facility receiving assistance under this title shall be 
     taken into account for purposes of making any determination 
     under the Clean Air Act in applying the provisions of that 
     Act to a facility not receiving assistance under this title, 
     including any determination concerning new source performance 
     standards, lowest achievable emission rate, best available 
     control technology, or any other standard, requirement, or 
     limitation.

     SEC. 5007. STUDY.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, and once every 2 years thereafter 
     through 2016, the Secretary, in cooperation with other 
     appropriate Federal agencies, shall transmit to the Committee 
     on Energy and Commerce and the Committee on Science of the 
     House of Representatives, and to the Senate, a report 
     containing the results of a study to--
       (1) identify efforts (and the costs and periods of time 
     associated with those efforts) that, by themselves or in 
     combination with other efforts, may be capable of achieving 
     the cost and performance goals;
       (2) develop recommendations for the Department of Energy to 
     promote the efforts identified under paragraph (1); and
       (3) develop recommendations for additional authorities 
     required to achieve the cost and performance goals.
       (b) Expert Advice.--In carrying out this section, the 
     Secretary shall give due weight to the expert advice of 
     representatives of the entities described in section 5004(b).

     SEC. 5008. CLEAN COAL CENTERS OF EXCELLENCE.

       As part of the program authorized in section 5003, the 
     Secretary shall award competitive, merit-based grants to 
     universities for the establishment of Centers of Excellence 
     for Energy Systems of the Future. The Secretary shall provide 
     grants to universities that can show the greatest potential 
     for advancing new clean coal technologies.

                               DIVISION F

     SEC. 6001. SHORT TITLE.

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

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

     SEC. 6101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS 
                   TO DETERMINE CAPABILITY TO SUPPORT NEW 
                   PIPELINES OR OTHER TRANSMISSION FACILITIES.

       (a) In General.--Within 1 year after the date of the 
     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 regarding--
       (1) whether the right-of-way can be used to support new or 
     additional capacity; and
       (2) what modifications or other changes, if any, would be 
     necessary to accommodate such additional capacity.
       (b) Consultations and Considerations.--In performing the 
     review, the head of each agency shall--
       (1) consult with agencies of State, tribal, or local units 
     of government as appropriate; and
       (2) 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 set forth those considerations in the report.

     SEC. 6102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL 
                   FEDERAL PUBLIC LANDS.

       (a) Inventory Requirement.--The Secretary of the Interior, 
     in consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall conduct an inventory of the energy 
     production potential of all Federal public lands other than 
     national park lands and lands in any wilderness area, with 
     respect to wind, solar, coal, and geothermal power 
     production.
       (b) Limitations.--
       (1) In general.--The Secretary shall not include in the 
     inventory under this section the matters to be identified in 
     the inventory under section 604 of the Energy Act of 2000 (43 
     U.S.C. 6217).
       (2) Wind and solar power.--The inventory under this 
     section--
       (A) with respect to wind power production shall be limited 
     to sites having a mean average wind speed--
       (i) exceeding 12.5 miles per hour at a height of 33 feet; 
     and
       (ii) exceeding 15.7 miles per hour at a height of 164 feet; 
     and
       (B) with respect to solar power production shall be limited 
     to areas rated as receiving 450 watts per square meter or 
     greater.
       (c) Examination of Restrictions and Impediments.--The 
     inventory shall identify the extent and nature of any 
     restrictions or impediments to the development of such energy 
     production potential.
       (d) Geothermal Power.--The inventory shall include an 
     update of the 1978 Assessment of Geothermal Resources by the 
     United States Geological Survey.
       (e) Completion and Updating.--The Secretary--
       (1) shall complete the inventory by not later than 2 years 
     after the date of the enactment of this Act; and
       (2) shall update the inventory regularly thereafter.
       (f) Reports.--The Secretary shall submit to the Committee 
     on Resources of the House of Representatives and to the 
     Committee on Energy and Natural Resources of the Senate and 
     make publicly available--
       (1) a report containing the inventory under this section, 
     by not later than 2 years after the effective date of this 
     section; and
       (2) each update of such inventory.

     SEC. 6103. 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 fuel cells, combined heat 
     and power, and distributed generation (including small-scale 
     renewable energy).
       (b) Report to Congress.--No later than 18 months after date 
     of the enactment of this Act, each agency shall provide a 
     report to the 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 
     the 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. 6104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF 
                   INTERSTATE NATURAL GAS PIPELINE PROJECTS.

       (a) In General.--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.
       (b) Task Force Members.--The task force shall include a 
     representative of each of the Bureau of Land Management, the 
     United States Fish and Wildlife Service, the Army Corps of 
     Engineers, the Forest Service, the Environmental Protection 
     Agency, the Advisory Council on Historic Preservation, and 
     such other agencies as the Secretary of Energy and the 
     Federal Energy Regulatory Commission consider appropriate.
       (c) Terms of Agreement.--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.
       (d) Submittal of Agreement.--The Secretary of Energy shall 
     submit a final interagency agreement under this section to 
     the Congress by not later than 6 months after the effective 
     date of this section.

[[Page 23580]]



     SEC. 6105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF 
                   FEDERAL LANDS.

       (a) Sense of the Congress.--It is the sense of Congress 
     that Federal land managing agencies should enhance the use of 
     energy efficient technologies in the management of natural 
     resources.
       (b) Energy Efficient Buildings.--To the extent economically 
     practicable, the Secretary of the Interior and the Secretary 
     of Agriculture shall seek to incorporate energy efficient 
     technologies in public and administrative buildings 
     associated with management of the National Park System, 
     National Wildlife Refuge System, National Forest System, and 
     other public lands and resources managed by such Secretaries.
       (c) Energy Efficient Vehicles.--To the extent economically 
     practicable, the Secretary of the Interior and the Secretary 
     of Agriculture shall seek to use energy efficient motor 
     vehicles, including vehicles equipped with biodiesel or 
     hybrid engine technologies, in the management of the National 
     Park System, National Wildlife Refuge System, and other 
     public lands and managed by the Secretaries.

     SEC. 6106. EFFICIENT INFRASTRUCTURE DEVELOPMENT.

       (a) In General.--The Secretary of Energy and the Chairman 
     of the Federal Energy Regulatory Commission shall jointly 
     undertake a study of the location and extent of anticipated 
     demand growth for natural gas consumption in the Western 
     States, herein defined as the area covered by the Western 
     System Coordinating Council.
       (b) Contents.--The study under subsection (a) shall include 
     the following:
       (1) A review of natural gas demand forecasts by Western 
     State officials, such as the California Energy Commission and 
     the California Public Utilities Commission, which indicate 
     the forecasted levels of demand for natural gas and the 
     geographic distribution of that forecasted demand.
       (2) A review of the locations of proposed new natural gas-
     fired electric generation facilities currently in the 
     approval process in the Western States, and their forecasted 
     impact on natural gas demand.
       (3) A review of the locations of existing interstate 
     natural gas transmission pipelines, and interstate natural 
     gas pipelines currently in the planning stage or approval 
     process, throughout the Western States.
       (4) A review of the locations and capacity of intrastate 
     natural gas pipelines in the Western States.
       (5) Recommendations for the coordination of the development 
     of the natural gas infrastructure indicated in paragraphs (1) 
     through (4).
       (c) Report.--The Secretary shall report the findings and 
     recommendations resulting from the study required by this 
     section to the Committee on Energy and Commerce of the House 
     of Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act. The Chairman of the Federal 
     Energy Regulatory Commission shall report on how the 
     Commission will factor these results into its review of 
     applications of interstate pipelines within the Western 
     States to the Committee on Energy and Commerce of the House 
     of Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

     SEC. 6201. SHORT TITLE.

       This subtitle may be referred to as the ``Royalty Relief 
     Extension Act of 2001''.

     SEC. 6202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA 
                   OF THE GULF OF MEXICO.

       (a) In General.--For all tracts located in water depths of 
     greater than 200 meters in the Western and Central Planning 
     Area of the Gulf of Mexico, including that portion of the 
     Eastern Planning Area of the Gulf of Mexico encompassing 
     whole lease blocks lying west of 87 degrees, 30 minutes West 
     longitude, any oil or gas lease sale under the Outer 
     Continental Shelf Lands Act occurring within 2 years after 
     the date of the enactment of this Act shall use the bidding 
     system authorized in section 8(a)(1)(H) of the Outer 
     Continental Shelf Lands Act (30 U.S.C. 1337(a)(1)(H)), except 
     that the suspension of royalties shall be set at a volume of 
     not less than the following:
       (1) 5 million barrels of oil equivalent for each lease in 
     water depths of 400 to 800 meters.
       (2) 9 million barrels of oil equivalent for each lease in 
     water depths of 800 to 1,600 meters.
       (3) 12 million barrels of oil equivalent for each lease in 
     water depths greater than 1,600 meters.
       (b) Relationship to Existing Authority.--Except as 
     expressly provided in this section, nothing in this section 
     is intended to limit the authority of the Secretary of the 
     Interior under the Outer Continental Shelf Lands Act (43 
     U.S.C. 1301 et seq.) to provide royalty suspension.

     SEC. 6203. 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.

     SEC. 6204. ANALYSIS OF GULF OF MEXICO FIELD SIZE 
                   DISTRIBUTION, INTERNATIONAL COMPETITIVENESS, 
                   AND INCENTIVES FOR DEVELOPMENT.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Energy shall enter into appropriate arrangements 
     with the National Academy of Sciences to commission the 
     Academy to perform the following:
       (1) Conduct an analysis and review of existing Gulf of 
     Mexico oil and natural gas resource assessments, including--
       (A) analysis and review of assessments recently performed 
     by the Minerals Management Service, the 1999 National 
     Petroleum Council Gas Study, the Department of Energy's 
     Offshore Marginal Property Study, and the Advanced Resources 
     International, Inc. Deepwater Gulf of Mexico model; and
       (B) evaluation and comparison of the accuracy of 
     assumptions of the existing assessments with respect to 
     resource field size distribution, hydrocarbon potential, and 
     scenarios for leasing, exploration, and development.
       (2) Evaluate the lease terms and conditions offered by the 
     Minerals Management Service for Lease Sale 178, and compare 
     the financial incentives offered by such terms and conditions 
     to financial incentives offered by the terms and conditions 
     that apply under leases for other offshore areas that are 
     competing for the same limited offshore oil and gas 
     exploration and development capital, including offshore areas 
     of West Africa and Brazil.
       (3) Recommend what level of incentives for all water depths 
     are appropriate in order to ensure that the United States 
     optimizes the domestic supply of oil and natural gas from the 
     offshore areas of the Gulf of Mexico that are not subject to 
     current leasing moratoria. Recommendations under this 
     paragraph should be made in the context of the importance of 
     the oil and natural gas resources of the Gulf of Mexico to 
     the future energy and economic needs of the United States.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of the Interior shall 
     submit a report to the Committee on Resources in the House of 
     Representatives and the Committee on Energy and Natural 
     Resources in the Senate, summarizing the findings of the 
     National Academy of Sciences pursuant to subsection (a) and 
     providing recommendations of the Secretary for new policies 
     or other actions that could help to further increase oil and 
     natural gas production from the Gulf of Mexico.

       Subtitle B--Improvements to Federal Oil and Gas Management

     SEC. 6221. SHORT TITLE.

       This subtitle may be cited as the ``Federal Oil and Gas 
     Lease Management Improvement Demonstration Program Act of 
     2001''.

     SEC. 6222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE 
                   OPERATIONS.

       (a) In General.--The Secretary of the Interior and the 
     Secretary of Agriculture shall jointly undertake a study of 
     the impediments to efficient oil and gas leasing and 
     operations on Federal onshore lands in order to identify 
     means by which unnecessary impediments to the expeditious 
     exploration and production of oil and natural gas on such 
     lands can be removed.
       (b) Contents.--The study under subsection (a) shall include 
     the following:
       (1) A review of the process by which Federal land managers 
     accept or reject an offer to lease, including the timeframes 
     in which such offers are acted upon, the reasons for any 
     delays in acting upon such offers, and any recommendations 
     for expediting the response to such offers.
       (2) A review of the approval process for applications for 
     permits to drill, including the timeframes in which such 
     applications are approved, the impact of compliance with 
     other Federal laws on such timeframes, any other reasons for 
     delays in making such approvals, and any recommendations for 
     expediting such approvals.
       (3) A review of the approval process for surface use plans 
     of operation, including the timeframes in which such 
     applications are approved, the impact of compliance with 
     other Federal laws on such timeframes, any other reasons for 
     delays in making such approvals, and any recommendations for 
     expediting such approvals.
       (4) A review of the process for administrative appeal of 
     decisions or orders of officers or employees of the Bureau of 
     Land Management with respect to a Federal oil or gas lease, 
     including the timeframes in which such appeals are heard and 
     decided, any reasons for delays in hearing or deciding such 
     appeals, and any recommendations for expediting the appeals 
     process.
       (c) Report.--The Secretaries shall report the findings and 
     recommendations resulting from the study required by this 
     section to the Committee on Resources of the House of 
     Representatives and to the Committee on Energy and Natural 
     Resources of the Senate no later than 6 months after the date 
     of the enactment of this Act.

     SEC. 6223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

       (a) In General.--The Secretary shall ensure that 
     unwarranted denials and stays of

[[Page 23581]]

     lease issuance and unwarranted restrictions on lease 
     operations are eliminated from the administration of oil and 
     natural gas leasing on Federal land.
       (b) Preparation of Leasing Plan or Analysis.--In preparing 
     a management plan or leasing analysis for oil or natural gas 
     leasing on Federal lands administered by the Bureau of Land 
     Management or the Forest Service, the Secretary concerned 
     shall--
       (1) identify and review the restrictions on surface use and 
     operations imposed under the laws (including regulations) of 
     the State in which the lands are located;
       (2) consult with the appropriate State agency regarding the 
     reasons for the State restrictions identified under paragraph 
     (1);
       (3) identify any differences between the State restrictions 
     identified under paragraph (1) and any restrictions on 
     surface use and operations that would apply under the lease; 
     and
       (4) prepare and provide upon request a written explanation 
     of such differences.
       (c) Rejection of Offer To Lease.--
       (1) In general.--If the Secretary rejects an offer to lease 
     Federal lands for oil or natural gas development on the 
     ground that the land is unavailable for oil and natural gas 
     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 Federal land 
     for oil and natural gas development that is available for 
     such leasing on the ground that the offer includes land 
     unavailable for leasing. 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 with respect to oil or natural gas development on 
     Federal lands.
       (e) Preservation of Federal Authority.--Nothing in this 
     section or in any identification, review, or explanation 
     prepared under this section shall be construed--
       (1) to limit the authority of the Federal Government to 
     impose lease stipulations, restrictions, requirements, or 
     other terms that are different than those that apply under 
     State law; or
       (2) to affect the procedures that apply to judicial review 
     of actions taken under this subsection.

     SEC. 6224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.

       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.

     SEC. 6225. CONSULTATION WITH SECRETARY OF AGRICULTURE.

       Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) 
     is amended to read as follows:
       ``(h)(1) In issuing any lease on National Forest System 
     lands reserved from the public domain, the Secretary of the 
     Interior shall consult with the Secretary of Agriculture in 
     determining stipulations on surface use under the lease.
       ``(2)(A) A lease on lands referred to in paragraph (1) may 
     not be issued if the Secretary of Agriculture determines, 
     after consultation under paragraph (1) and consultation with 
     the Regional Forester having administrative jurisdiction over 
     the National Forest System Lands concerned, that the terms 
     and conditions of the lease, including any prohibition on 
     surface occupancy for lease operations, will not be 
     sufficient to adequately protect such lands under the 
     National Forest Management Act of 1976 (16 U.S.C. 1600 et 
     seq.).
       ``(B) The authority of the Secretary of Agriculture under 
     this paragraph may be delegated only to the Undersecretary of 
     Agriculture for Natural Resources and Environment.
       ``(3) The Secretary of Agriculture shall include in the 
     record of decision for a determination under paragraph 
     (2)(A)--
       ``(A) any written statement regarding the determination 
     that is prepared by a Regional Forester consulted by the 
     Secretary under paragraph (2)(A) regarding the determination; 
     or
       ``(B) an explanation why such a statement by the Regional 
     Forester is not included.

                       Subtitle C--Miscellaneous

     SEC. 6231. OFFSHORE SUBSALT DEVELOPMENT.

       Section 5 of the Outer Continental Shelf Lands Act of 1953 
     (43 U.S.C. 1334) is amended by adding at the end the 
     following:
       ``(k) Suspension of Operations for Subsalt Exploration.--
     Notwithstanding any other provision of law or regulation, to 
     prevent waste caused by the drilling of unnecessary wells and 
     to facilitate the discovery of additional hydrocarbon 
     reserves, the Secretary may grant a request for a suspension 
     of operations under any lease to allow the reprocessing and 
     reinterpretation of geophysical data to identify and define 
     drilling objectives beneath allocthonus salt sheets.''.

     SEC. 6232. 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), 
     section 27 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1353), or any other mineral leasing law, in the period 
     beginning on the date of the 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.) 
     shall, on the demand of the Secretary of the Interior, be 
     paid in oil or gas. If the Secretary of the Interior makes 
     such a demand, the following provisions apply to such 
     payment:
       (1) Delivery by, or on behalf of, the lessee of the royalty 
     amount and quality due under the lease satisfies the lessee's 
     royalty obligation for the amount delivered, except that 
     transportation and processing reimbursements paid to, or 
     deductions claimed by, the lessee shall be subject to review 
     and audit.
       (2) Royalty production shall be placed in marketable 
     condition by the lessee 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 (other than oil or gas taken under section 
     27(a)(3) of the Outer Continental Shlef Lands Act (43 U.S.C. 
     1353(a)(3)) for not less than the market price; 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 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.
       (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 royalty 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--
       (1) reimburse the lessee for the reasonable costs of 
     transportation (not including gathering) from the lease to 
     the point of delivery or for processing costs; or
       (2) 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 Required.--The Secretary 
     may receive oil or gas royalties in kind only if the 
     Secretary determines that receiving such royalties provides 
     benefits to the United States greater than or equal to those 
     that would be realized under a comparable royalty in value 
     program.
       (e) Report to Congress.--For each of the fiscal years 2002 
     through 2006 in which the United States takes oil or gas 
     royalties in kind from production in any State or from the 
     Outer Continental Shelf, excluding royalties taken in kind 
     and sold to refineries under subsection (h), the Secretary of 
     the Interior shall provide a report to the Congress 
     describing--
       (1) the methodology or methodologies used by the Secretary 
     to determine compliance with subsection (d), including 
     performance standards for comparing amounts received by the 
     United States derived from such royalties in kind 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 received by the United States derived 
     from taking royalties in kind, and costs and savings incurred 
     by the United States associated with taking royalties in 
     kind; and
       (4) an evaluation of other relevant public benefits or 
     detriments associated with taking royalties in kind.
       (f) Deduction of Expenses.--
       (1) In general.--Before making payments under section 35 of 
     the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of 
     the Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of 
     revenues derived from the sale of royalty production taken in 
     kind from a

[[Page 23582]]

     lease, the Secretary of the Interior shall deduct amounts 
     paid or deducted under subsections (b)(4) and (c), and shall 
     deposit such amounts to miscellaneous receipts.
       (2) Accounting for deductions.--If the Secretary of the 
     Interior allows the lessee to deduct transportation or 
     processing costs under subsection (c), the Secretary may not 
     reduce any payments to recipients of revenues derived from 
     any other Federal oil and gas lease as a consequence of that 
     deduction.
       (g) Consultation With States.--The Secretary of the 
     Interior--
       (1) shall consult with a State before conducting a royalty 
     in kind program under this title 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; and
       (2) shall consult annually with any State from which 
     Federal oil or gas royalty is being taken in kind to ensure 
     to the maximum extent practicable that the royalty in kind 
     program provides revenues to the State greater than or equal 
     to those which would be realized under a comparable royalty 
     in value program.
       (h) Provisions for Small Refineries.--
       (1) Preference.--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 the market price.
       (2) Proration among refineries in production area.--In 
     disposing of oil under this subsection, the Secretary of the 
     Interior may, at the discretion of the Secretary, prorate 
     such oil among such refineries in the area in which the oil 
     is produced.
       (i) Disposition to Federal Agencies.--
       (1) Onshore royalty.--Any royalty oil or gas taken by the 
     Secretary in kind from onshore oil and gas leases may be sold 
     at not less than the market price to any department or agency 
     of the United States.
       (2) Offshore royalty.--Any royalty oil or gas taken in kind 
     from Federal oil and gas leases on the Outer Continental 
     Shelf may be disposed of only under section 27 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1353).
       (j) Preference for Federal Low-Income Energy Assistance 
     Programs.--In disposing of royalty oil or gas taken in kind 
     under this section, the Secretary may grant a preference to 
     any person, including any State or Federal agency, for the 
     purpose of providing additional resources to any Federal low-
     income energy assistance program.

     SEC. 6233. MARGINAL WELL PRODUCTION INCENTIVES.

       To enhance the economics of marginal oil and gas production 
     by increasing the ultimate recovery from marginal wells when 
     the cash price of West Texas Intermediate crude oil, as 
     posted on the Dow Jones Commodities Index chart, is less than 
     $15 per barrel for 180 consecutive pricing days or when the 
     price of natural gas delivered at Henry Hub, Louisiana, is 
     less than $2.00 per million British thermal units for 180 
     consecutive days, the Secretary shall reduce the royalty rate 
     as production declines for--
       (1) onshore oil wells producing less than 30 barrels per 
     day;
       (2) onshore gas wells producing less than 120 million 
     British thermal units per day;
       (3) offshore oil wells producing less than 300 barrels of 
     oil per day; and
       (4) offshore gas wells producing less than 1,200 million 
     British thermal units per day.

     SEC. 6234. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, 
                   DOCUMENTATION, AND STUDIES.

       (a) In General.--The Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) is amended by inserting after section 37 the following:


   ``reimbursement for costs of certain analyses, documentation, and 
                                studies

       ``Sec. 38. (a) In General.--The Secretary of the Interior 
     may, through royalty credits, reimburse a person who is a 
     lessee, operator, operating rights owner, or applicant for an 
     oil or gas lease under this Act for amounts paid by the 
     person for preparation by the Secretary (or a contractor or 
     other person selected by the Secretary) of any project-level 
     analysis, documentation, or related study required under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the lease.
       ``(b) Conditions.--The Secretary may provide reimbursement 
     under subsection (b) only if--
       ``(1) adequate funding to enable the Secretary to timely 
     prepare the analysis, documentation, or related study is not 
     appropriated;
       ``(2) the person paid the costs voluntarily; and
       ``(3) the person maintains records of its costs in 
     accordance with regulations prescribed by the Secretary.''.
       (b) Application.--The amendments made by this section shall 
     apply with respect to any lease entered into before, on, or 
     after the date of the enactment of this Act.
       (c) Deadline for Regulations.--The Secretary shall issue 
     regulations implementing the amendments made by this section 
     by not later than 90 days after the date of the enactment of 
     this Act.

     SEC. 6235. ENCOURAGEMENT OF STATE AND PROVINCIAL PROHIBITIONS 
                   ON OFF-SHORE DRILLING IN THE GREAT LAKES.

       (a) Findings.--The Congress finds the following:
       (1) The water resources of the Great Lakes Basin are 
     precious public natural resources, shared and held in trust 
     by the States of Illinois, Indiana, Michigan, Minnesota, New 
     York, Ohio, Pennsylvania, and Wisconsin, and the Canadian 
     Province of Ontario.
       (2) The environmental dangers associated with off-shore 
     drilling in the Great Lakes for oil and gas outweigh the 
     potential benefits of such drilling.
       (3) In accordance with the Submerged Lands Act (43 U.S.C. 
     1301 et seq.), each State that borders any of the Great Lakes 
     has authority over the area between that State's coastline 
     and the boundary of Canada or another State.
       (4) The States of Illinois, Michigan, New York, 
     Pennsylvania, and Wisconsin each have a statutory prohibition 
     of off-shore drilling in the Great Lakes for oil and gas.
       (5) The States of Indiana, Minnesota, and Ohio do not have 
     such a prohibition.
       (6) The Canadian Province of Ontario does not have such a 
     prohibition, and drilling for and production of gas occurs in 
     the Canadian portion of Lake Erie.
       (b) Encouragement of State and Provincial Prohibitions.--
     The Congress encourages--
       (1) the States of Illinois, Michigan, New York, 
     Pennsylvania, and Wisconsin to continue to prohibit off-shore 
     drilling in the Great Lakes for oil and gas;
       (2) the States of Indiana, Minnesota, and Ohio and the 
     Canadian Province of Ontario to enact a prohibition of such 
     drilling; and
       (3) the Canadian Province of Ontario to require the 
     cessation of any such drilling and any production resulting 
     from such drilling.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

     SEC. 6301. ROYALTY REDUCTION AND RELIEF.

       (a) Royalty Reduction.--Section 5(a) of the Geothermal 
     Steam Act of 1970 (30 U.S.C. 1004(a)) is amended by striking 
     ``not less than 10 per centum or more than 15 per centum'' 
     and inserting ``not more than 8 per centum''.
       (b) Royalty Relief.--
       (1) In general.--Notwithstanding section 5 of the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1004(a)) and any 
     provision of any lease under that Act, no royalty is required 
     to be paid--
       (A) under any qualified geothermal energy lease with 
     respect to commercial production of heat or energy from a 
     facility that begins such production in the 5-year period 
     beginning on the date of the enactment of this Act; or
       (B) on qualified expansion geothermal energy.
       (2) 3-year application.--Paragraph (1) applies only to 
     commercial production of heat or energy from a facility in 
     the first 3 years of such production.
       (c) Definitions.--In this section:
       (1) Qualified expansion geothermal energy.--The term 
     ``qualified expansion geothermal energy''--
       (A) subject to subparagraph (B), means geothermal energy 
     produced from a generation facility for which the rated 
     capacity is increased by more than 10 percent as a result of 
     expansion of the facility carried out in the 5-year period 
     beginning on the date of the enactment of this Act; and
       (B) does not include the rated capacity of the generation 
     facility on the date of the enactment of this Act.
       (2) Qualified geothermal energy lease.--The term 
     ``qualified geothermal energy lease'' means a lease under the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
       (A) that was executed before the end of the 5-year period 
     beginning on the date of the enactment of this Act; and
       (B) under which no commercial production of any form of 
     heat or energy occurred before the date of the enactment of 
     this Act.

     SEC. 6302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW 
                   TEMPERATURE GEOTHERMAL ENERGY RESOURCES.

       (a) In General.--Section 5 of the Geothermal Steam Act of 
     1970 (30 U.S.C. 1004) is amended--
       (1) in paragraph (c) by redesignating subparagraphs (1) and 
     (2) as subparagraphs (A) and (B);
       (2) by redesignating paragraphs (a) through (d) in order as 
     paragraphs (1) through (4);
       (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; 
     and
       (4) by adding at the end the following new subsection:
       ``(b) Exemption for Use of Low Temperature Resources.--
       ``(1) In general.--In lieu of any royalty or rental under 
     subsection (a), a lease for qualified development and direct 
     utilization of low temperature geothermal resources shall 
     provide for payment by the lessee of an annual fee of not 
     less than $100, and not more than $1,000, in accordance with 
     the schedule issued under paragraph (2).
       ``(2) Schedule.--The Secretary shall issue a schedule of 
     fees under this section under

[[Page 23583]]

     which a fee is based on the scale of development and 
     utilization to which the fee applies.
       ``(3) Definitions.--In this subsection:
       ``(A) Low temperature geothermal resources.--The term `low 
     temperature geothermal resources' means geothermal steam and 
     associated geothermal resources having a temperature of less 
     than 195 degrees Fahrenheit.
       ``(B) Qualified development and direct utilization.--The 
     term `qualified development and direct utilization' means 
     development and utilization in which all products of 
     geothermal resources, other than any heat utilized, are 
     returned to the geothermal formation from which they are 
     produced.''.
       (b) Effective Date.--The provisions of this section shall 
     take effect on October 1, 2003.

     SEC. 6303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE 
                   LANDS.

       The Geothermal Steam Act of 1970 is amended--
       (1) in section 15(b) (30 U.S.C. 1014(b))--
       (A) by inserting ``(1)'' after ``(b)''; and
       (B) in paragraph (1) (as designated by subparagraph (A) of 
     this paragraph) in the first sentence--
       (i) by striking ``with the consent of, and'' and inserting 
     ``after consultation with the Secretary of Agriculture and''; 
     and
       (ii) by striking ``the head of that Department'' and 
     inserting ``the Secretary of Agriculture''; and
       (2) by adding at the end the following:
       ``(2)(A) A geothermal lease for lands withdrawn or acquired 
     in aid of functions of the Department of Agriculture may not 
     be issued if the Secretary of Agriculture, after the 
     consultation required by paragraph (1) and consultation with 
     any Regional Forester having administrative jurisdiction over 
     the lands concerned, determines that no terms or conditions, 
     including a prohibition on surface occupancy for lease 
     operations, would be sufficient to adequately protect such 
     lands under the National Forest Management Act of 1976 (16 
     U.S.C. 1600 et seq.).
       ``(B) The authority of the Secretary of Agriculture under 
     this paragraph may be delegated only to the Undersecretary of 
     Agriculture for Natural Resources and Environment.
       ``(3) The Secretary of Agriculture shall include in the 
     record of decision for a determination under paragraph 
     (2)(A)--
       ``(A) any written statement regarding the determination 
     that is prepared by a Regional Forester consulted by the 
     Secretary under paragraph (2)(A) regarding the determination; 
     or
       ``(B) an explanation why such a statement by the Regional 
     Forester is not included.

     SEC. 6304. DEADLINE FOR DETERMINATION ON PENDING 
                   NONCOMPETITIVE LEASE APPLICATIONS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of the Interior shall, with respect 
     to each application pending on the date of the enactment of 
     this Act for a lease under the Geothermal Steam Act of 1970 
     (30 U.S.C. 1001 et seq.), issue a final determination of--
       (1) whether or not to conduct a lease sale by competitive 
     bidding; and
       (2) whether or not to award a lease without competitive 
     bidding.

     SEC. 6305. OPENING OF PUBLIC LANDS UNDER MILITARY 
                   JURISDICTION.

       (a) In General.--Except as otherwise provided in the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) and 
     other provisions of Federal law applicable to development of 
     geothermal energy resources within public lands, all public 
     lands under the jurisdiction of a Secretary of a military 
     department shall be open to the operation of such laws and 
     development and utilization of geothermal steam and 
     associated geothermal resources, as that term is defined in 
     section 2 of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1001), without the necessity for further action by the 
     Secretary or the Congress.
       (b) Conforming Amendment.--Section 2689 of title 10, United 
     States Code, is amended by striking ``including public 
     lands,'' and inserting ``other than public lands,''.
       (c) Treatment of Existing Leases.--Upon the expiration of 
     any lease in effect on the date of the enactment of this Act 
     of public lands under the jurisdiction of a military 
     department for the development of any geothermal resource, 
     such lease may, at the option of the lessee--
       (1) be treated as a lease under the Geothermal Steam Act of 
     1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance 
     with such Act; or
       (2) be renewed in accordance with the terms of the lease, 
     if such renewal is authorized by such terms.
       (d) Regulations.--The Secretary of the Interior, with the 
     advice and concurrence of the Secretary of the military 
     department concerned, shall prescribe such regulations to 
     carry out this section as may be necessary. Such regulations 
     shall contain guidelines to assist in determining how much, 
     if any, of the surface of any lands opened pursuant to this 
     section may be used for purposes incident to geothermal 
     energy resources development and utilization.
       (e) Closure for Purposes of National Defense or Security.--
     In the event of a national emergency or for purposes of 
     national defense or security, the Secretary of the Interior, 
     at the request of the Secretary of the military department 
     concerned, shall close any lands that have been opened to 
     geothermal energy resources leasing pursuant to this section.

     SEC. 6306. APPLICATION OF AMENDMENTS.

       The amendments made by this title apply with respect to any 
     lease executed before, on, or after the date of the enactment 
     of this Act.

     SEC. 6307. REVIEW AND REPORT TO CONGRESS.

       The Secretary of the Interior shall promptly review and 
     report to the Congress regarding the status of all moratoria 
     on and withdrawals from leasing under the Geothermal Steam 
     Act of 1970 (30 U.S.C. 1001 et seq.) of known geothermal 
     resources areas (as that term is defined in section 2 of that 
     Act (30 U.S.C. 1001), specifying for each such area whether 
     the basis for such moratoria or withdrawal still applies.

     SEC. 6308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, 
                   DOCUMENTATION, AND STUDIES.

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


   ``reimbursement for costs of certain analyses, documentation, and 
                                studies

       ``Sec. 38. (a) In General.--The Secretary of the Interior 
     may, through royalty credits, reimburse a person who is a 
     lessee, operator, operating rights owner, or applicant for a 
     lease under this Act for amounts paid by the person for 
     preparation by the Secretary (or a contractor or other person 
     selected by the Secretary) of any project-level analysis, 
     documentation, or related study required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to the lease.
       ``(b) Conditions.--The Secretary shall may provide 
     reimbursement under subsection (a) only if--
       ``(1) adequate funding to enable the Secretary to timely 
     prepare the analysis, documentation, or related study is not 
     appropriated;
       ``(2) the person paid the costs voluntarily; and
       ``(3) the person maintains records of its costs in 
     accordance with regulations prescribed by the Secretary.''.
       (b) Application.--The amendments made by this section shall 
     apply with respect to any lease entered into before, on, or 
     after the date of the enactment of this Act.
       (c) Deadline for Regulations.--The Secretary shall issue 
     regulations implementing the amendments made by this section 
     by not later than 90 days after the date of the enactment of 
     this Act.

                          TITLE IV--HYDROPOWER

     SEC. 6401. STUDY AND REPORT ON INCREASING ELECTRIC POWER 
                   PRODUCTION CAPABILITY OF EXISTING FACILITIES.

       (a) In General.--The Secretary of the Interior shall 
     conduct a study of the potential for increasing electric 
     power production capability at existing facilities under the 
     administrative jurisdiction of the Secretary.
       (b) Content.--The study under this section shall include 
     identification and description in detail of each facility 
     that is capable, with or without modification, of producing 
     additional hydroelectric power, including estimation of the 
     existing potential for the facility to generate hydroelectric 
     power.
       (c) Report.--The Secretary shall submit to the Congress a 
     report on the findings, conclusions, and recommendations of 
     the study under this section by not later than 12 months 
     after the date of the enactment of this Act. The Secretary 
     shall include in the report the following:
       (1) The identifications, descriptions, and estimations 
     referred to in subsection (b).
       (2) A description of activities the Secretary is currently 
     conducting or considering, or that could be considered, to 
     produce additional hydroelectric power from each identified 
     facility.
       (3) A summary of action that has already been taken by the 
     Secretary to produce additional hydroelectric power from each 
     identified facility.
       (4) The costs to install, upgrade, or modify equipment or 
     take other actions to produce additional hydroelectric power 
     from each identified facility.
       (5) The benefits that would be achieved by such 
     installation, upgrade, modification, or other action, 
     including quantified estimates of any additional energy or 
     capacity from each facility identified under subsection (b).
       (6) A description of actions that are planned, underway, or 
     might reasonably be considered to increase hydroelectric 
     power production by replacing turbine runners.
       (7) A description of actions that are planned, underway, or 
     might reasonably be considered to increase hydroelectric 
     power production by performing generator uprates and rewinds.
       (8) The impact of increased hydroelectric power production 
     on irrigation, fish, wildlife, Indian tribes, river health, 
     water quality, navigation, recreation, fishing, and flood 
     control.
       (9) Any additional recommendations the Secretary considers 
     advisable to increase hydroelectric power production from, 
     and reduce costs and improve efficiency at, facilities under 
     the jurisdiction of the Secretary.

[[Page 23584]]



     SEC. 6402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT, 
                   CALIFORNIA.

       (a) In General.--The Secretary of the Interior may install 
     a powerformer at the Bureau of Reclamation Folsom power plant 
     in Folsom, California, to replace a generator and transformer 
     that are due for replacement due to age.
       (b) Reimbursable Costs.--Costs incurred by the United 
     States for installation of a powerformer under this section 
     shall be treated as reimbursable costs and shall bear 
     interest at current long-term borrowing rates of the United 
     States Treasury at the time of acquisition.
       (c) Local Cost Sharing.--In addition to reimbursable costs 
     under subsection (b), the Secretary shall seek contributions 
     from power users toward the costs of the powerformer and its 
     installation.

     SEC. 6403. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL 
                   EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.

       (a) In General.--The Secretary of Interior shall conduct a 
     study of operational methods and water scheduling techniques 
     at all hydroelectric power plants under the administrative 
     jurisdiction of the Secretary that have an electric power 
     production capacity greater than 50 megawatts, to--
       (1) determine whether such power plants and associated 
     river systems are operated so as to maximize energy and 
     capacity capabilities; and
       (2) identify measures that can be taken to improve 
     operational flexibility at such plants to achieve such 
     maximization.
       (b) Report.--The Secretary shall submit a report on the 
     findings, conclusions, and recommendations of the study under 
     this section by not later than 18 months after the date of 
     the enactment of this Act, including a summary of the 
     determinations and identifications under paragraphs (1) and 
     (2) of subsection (a).
       (c) Cooperation by Federal Power Marketing 
     Administrations.--The Secretary shall coordinate with the 
     Administrator of each Federal power marketing administration 
     in--
       (1) determining how the value of electric power produced by 
     each hydroelectric power facility that produces power 
     marketed by the administration can be maximized; and
       (2) implementing measures identified under subsection 
     (a)(2).
       (d) Limitation on Implementation of Measures.--
     Implementation under subsections (a)(2) and (b)(2) shall be 
     limited to those measures that can be implemented within the 
     constraints imposed on Department of the Interior facilities 
     by other uses required by law.

     SEC. 6404. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

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

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

     SEC. 6501. SHORT TITLE.

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

     SEC. 6502. DEFINITIONS.

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

     SEC. 6503. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                   PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement in accordance with this 
     title a competitive oil and gas leasing program under the 
     Mineral Leasing Act (30 U.S.C. 181 et seq.) that will result 
     in an environmentally sound program for the exploration, 
     development, and production of the oil and gas resources of 
     the Coastal Plain; and
       (2) to administer the provisions of this title through 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, and other provisions that ensure 
     the oil and gas exploration, development, and production 
     activities on the Coastal Plain will result in no significant 
     adverse effect on fish and wildlife, their habitat, 
     subsistence resources, and the environment, and including, in 
     furtherance of this goal, by requiring the application of the 
     best commercially available technology for oil and gas 
     exploration, development, and production to all exploration, 
     development, and production operations under this title in a 
     manner that ensures the receipt of fair market value by the 
     public for the mineral resources to be leased.
       (b) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (c) Compliance With Requirements Under Certain Other 
     Laws.--
       (1) Compatibility.--For purposes of the National Wildlife 
     Refuge System Administration Act of 1966, the oil and gas 
     leasing program and activities authorized by this section in 
     the Coastal Plain are deemed to be compatible with the 
     purposes for which the Arctic National Wildlife Refuge was 
     established, and that no further findings or decisions are 
     required to implement this determination.
       (2) Adequacy of the department of the interior's 
     legislative environmental impact statement.--The ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain prepared pursuant to section 1002 of the 
     Alaska National Interest Lands Conservation Act 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 
     deemed to satisfy the requirements under the National 
     Environmental Policy Act of 1969 that apply with respect to 
     actions authorized to be taken by the Secretary to develop 
     and promulgate the regulations for the establishment of a 
     leasing program authorized by this title before the conduct 
     of the first lease sale.
       (3) Compliance with nepa for other actions.--Before 
     conducting the first lease sale under this title, the 
     Secretary shall prepare an environmental impact statement 
     under the National Environmental Policy Act of 1969 with 
     respect to the actions authorized by this title that are not 
     referred to in paragraph (2). Notwithstanding any other law, 
     the Secretary is not required to identify nonleasing 
     alternative courses of action or to analyze the environmental 
     effects of such courses of action. The Secretary shall only 
     identify a preferred action for such leasing and a single 
     leasing alternative, and analyze the environmental effects 
     and potential mitigation measures for those two alternatives. 
     The identification of the preferred action and related 
     analysis for the first lease sale under this title shall be 
     completed within 18 months after the date of the enactment of 
     this Act. The Secretary shall only consider public comments 
     that specifically address the Secretary's preferred action 
     and that are filed within 20 days after publication of an 
     environmental analysis. Notwithstanding any other law, 
     compliance with this paragraph is deemed to satisfy all 
     requirements for the analysis and consideration of the 
     environmental effects of proposed leasing under this title.
       (d) Relationship to State and Local Authority.--Nothing in 
     this title shall be considered to expand or limit State and 
     local regulatory authority.
       (e) Special Areas.--
       (1) In general.--The Secretary, after consultation with the 
     State of Alaska, the city of Kaktovik, and the North Slope 
     Borough, may designate up to a total of 45,000 acres of the 
     Coastal Plain as a Special Area if the Secretary determines 
     that the Special Area is of such unique character and 
     interest so as to require special management and regulatory 
     protection. The Secretary shall designate as such a Special 
     Area the Sadlerochit Spring area, comprising approximately 
     4,000 acres as depicted on the map referred to in section 
     6502(1).
       (2) Management.--Each such Special Area shall be managed so 
     as to protect and preserve the area's unique and diverse 
     character including its fish, wildlife, and subsistence 
     resource values.
       (3) Exclusion from leasing or surface occupancy.--The 
     Secretary may exclude any Special Area from leasing. If the 
     Secretary leases a Special Area, or any part thereof, for 
     purposes of oil and gas exploration, development, production, 
     and related activities, there shall be no surface occupancy 
     of the lands comprising the Special Area.
       (4) Directional drilling.--Notwithstanding the other 
     provisions of this subsection, the Secretary may lease all or 
     a portion of a Special Area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the area.
       (f) Limitation on Closed Areas.--The Secretary's sole 
     authority to close lands within the Coastal Plain to oil and 
     gas leasing and to exploration, development, and production 
     is that set forth in this title.
       (g) Regulations.--
       (1) In general.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this title, 
     including rules and regulations relating to protection of the 
     fish and wildlife, their habitat, subsistence resources, and 
     environment of the Coastal

[[Page 23585]]

     Plain, by no later than 15 months after the date of the 
     enactment of this Act.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, if appropriate, revise the rules and 
     regulations issued under subsection (a) to reflect any 
     significant biological, environmental, or engineering data 
     that come to the Secretary's attention.

     SEC. 6504. LEASE SALES.

       (a) In General.--Lands may be leased pursuant to this title 
     to any person qualified to obtain a lease for deposits of oil 
     and gas under the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal Plain for inclusion in, or exclusion (as 
     provided in subsection (c)) from, a lease sale;
       (2) the holding of lease sales after such nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this title 
     shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--In the first lease sale 
     under this title, the Secretary shall offer for lease those 
     tracts the Secretary considers to have the greatest potential 
     for the discovery of hydrocarbons, taking into consideration 
     nominations received pursuant to subsection (b)(1), but in no 
     case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) conduct the first lease sale under this title within 22 
     months after the date of the enactment of this title; and
       (2) conduct additional sales so long as sufficient interest 
     in development exists to warrant, in the Secretary's 
     judgment, the conduct of such sales.

     SEC. 6505. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--The Secretary may grant to the highest 
     responsible qualified bidder in a lease sale conducted 
     pursuant to section 6504 any lands to be leased on the 
     Coastal Plain upon payment by the lessee of such bonus as may 
     be accepted by the Secretary.
       (b) Subsequent Transfers.--No lease issued under this title 
     may be sold, exchanged, assigned, sublet, or otherwise 
     transferred except with the approval of the Secretary. Prior 
     to any such approval the Secretary shall consult with, and 
     give due consideration to the views of, the Attorney General.

     SEC. 6506. LEASE TERMS AND CONDITIONS.

       (a) In General.--An oil or gas lease issued pursuant to 
     this title shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent in amount or value of the production removed 
     or sold from the lease, as determined by the Secretary under 
     the regulations applicable to other Federal oil and gas 
     leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, portions of the Coastal Plain to exploratory drilling 
     activities as necessary to protect caribou calving areas and 
     other species of fish and wildlife;
       (3) require that the lessee of lands within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of lands within the Coastal Plain and any other 
     Federal lands that are adversely affected in connection with 
     exploration, development, production, or transportation 
     activities conducted under the lease and within the Coastal 
     Plain by the lessee or by any of the subcontractors or agents 
     of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, the reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for lands 
     required to be reclaimed under this title shall be, as nearly 
     as practicable, a condition capable of supporting the uses 
     which the lands were capable of supporting prior to any 
     exploration, development, or production activities, or upon 
     application by the lessee, to a higher or better use as 
     approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, their habitat, and the environment as 
     required pursuant to section 6503(a)(2);
       (7) provide that the lessee, its agents, and its 
     contractors use best efforts to provide a fair share, as 
     determined by the level of obligation previously agreed to in 
     the 1974 agreement implementing section 29 of the Federal 
     Agreement and Grant of Right of Way for the Operation of the 
     Trans-Alaska Pipeline, of employment and contracting for 
     Alaska Natives and Alaska Native Corporations from throughout 
     the State;
       (8) prohibit the export of oil produced under the lease; 
     and
       (9) contain such other provisions as the Secretary 
     determines necessary to ensure compliance with the provisions 
     of this title and the regulations issued under this title.
       (b) Project Labor Agreements.--The Secretary, as a term and 
     condition of each lease under this title and in recognizing 
     the Government's proprietary interest in labor stability and 
     in the ability of construction labor and management to meet 
     the particular needs and conditions of projects to be 
     developed under the leases issued pursuant to this title and 
     the special concerns of the parties to such leases, shall 
     require that the lessee and its agents and contractors 
     negotiate to obtain a project labor agreement for the 
     employment of laborers and mechanics on production, 
     maintenance, and construction under the lease.

     SEC. 6507. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--The Secretary shall, 
     consistent with the requirements of section 6503, administer 
     the provisions of this title through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (1) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, and the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum amount of surface acreage 
     covered by production and support facilities, including 
     airstrips and any areas covered by gravel berms or piers for 
     support of pipelines, does not exceed 2,000 acres on the 
     Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall also require, with respect to any proposed drilling and 
     related activities, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, their habitat, and the 
     environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the extent practicable) any significant 
     adverse effect identified under paragraph (1); and
       (3) the development of the plan shall occur after 
     consultation with the agency or agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this title, 
     the Secretary shall prepare and promulgate regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other measures designed to ensure that the activities 
     undertaken on the Coastal Plain under this title are 
     conducted in a manner consistent with the purposes and 
     environmental requirements of this title.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this title shall 
     require compliance with all applicable provisions of Federal 
     and State environmental law and shall also require the 
     following:
       (1) Standards at least as effective as the safety and 
     environmental mitigation measures set forth in items 1 
     through 29 at pages 167 through 169 of the ``Final 
     Legislative Environmental Impact Statement'' (April 1987) on 
     the Coastal Plain.
       (2) Seasonal limitations on exploration, development, and 
     related activities, where necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration.
       (3) That exploration activities, except for surface 
     geological studies, be limited to the period between 
     approximately November 1 and May 1 each year and that 
     exploration activities shall be supported by ice roads, 
     winter trails with adequate snow cover, ice pads, ice 
     airstrips, and air transport methods, except that such 
     exploration activities may occur at other times, if--
       (A) the Secretary determines, after affording an 
     opportunity for public comment and review, that special 
     circumstances exist necessitating that exploration activities 
     be conducted at other times of the year; and
       (B) the Secretary finds that such exploration will have no 
     significant adverse effect on the fish and wildlife, their 
     habitat, and the environment of the Coastal Plain.
       (4) Design safety and construction standards for all 
     pipelines and any access and service roads, that--
       (A) minimize, to the maximum extent possible, adverse 
     effects upon the passage of migratory species such as 
     caribou; and
       (B) minimize adverse effects upon the flow of surface water 
     by requiring the use of culverts, bridges, and other 
     structural devices.
       (5) Prohibitions on public access and use on all pipeline 
     access and service roads.
       (6) Stringent reclamation and rehabilitation requirements, 
     consistent with the standards set forth in this title, 
     requiring the removal from the Coastal Plain of all oil and 
     gas development and production facilities, structures, and 
     equipment upon completion of oil and gas production 
     operations, except that the Secretary may exempt from the 
     requirements of this paragraph those facilities, structures, 
     or equipment that the Secretary determines would assist in 
     the management of the Arctic National Wildlife Refuge and 
     that are donated to the United States for that purpose.

[[Page 23586]]

       (7) Appropriate prohibitions or restrictions on access by 
     all modes of transportation.
       (8) Appropriate prohibitions or restrictions on sand and 
     gravel extraction.
       (9) Consolidation of facility siting.
       (10) Appropriate prohibitions or restrictions on use of 
     explosives.
       (11) Avoidance, to the extent practicable, of springs, 
     streams, and river system; the protection of natural surface 
     drainage patterns, wetlands, and riparian habitats; and the 
     regulation of methods or techniques for developing or 
     transporting adequate supplies of water for exploratory 
     drilling.
       (12) Avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife.
       (13) Treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including an annual waste management 
     report, a hazardous materials tracking system, and a 
     prohibition on chlorinated solvents, in accordance with 
     applicable Federal and State environmental law.
       (14) Fuel storage and oil spill contingency planning.
       (15) Research, monitoring, and reporting requirements.
       (16) Field crew environmental briefings.
       (17) Avoidance of significant adverse effects upon 
     subsistence hunting, fishing, and trapping by subsistence 
     users.
       (18) Compliance with applicable air and water quality 
     standards.
       (19) Appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited.
       (20) Reasonable stipulations for protection of cultural and 
     archeological resources.
       (21) All other protective environmental stipulations, 
     restrictions, terms, and conditions deemed necessary by the 
     Secretary.
       (e) Considerations.--In preparing and promulgating 
     regulations, lease terms, conditions, restrictions, 
     prohibitions, and stipulations under this section, the 
     Secretary shall consider the following:
       (1) The stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement.
       (2) The environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 to 37.33 of title 50, Code of Federal 
     Regulations.
       (3) The land use stipulations for exploratory drilling on 
     the KIC-ASRC private lands that are set forth in Appendix 2 
     of the August 9, 1983, agreement between Arctic Slope 
     Regional Corporation and the United States.
       (f) Facility Consolidation Planning.--
       (1) In general.--The Secretary shall, after providing for 
     public notice and comment, prepare and update periodically a 
     plan to govern, guide, and direct the siting and construction 
     of facilities for the exploration, development, production, 
     and transportation of Coastal Plain oil and gas resources.
       (2) Objectives.--The plan shall have the following 
     objectives:
       (A) Avoiding unnecessary duplication of facilities and 
     activities.
       (B) Encouraging consolidation of common facilities and 
     activities.
       (C) Locating or confining facilities and activities to 
     areas that will minimize impact on fish and wildlife, their 
     habitat, and the environment.
       (D) Utilizing existing facilities wherever practicable.
       (E) Enhancing compatibility between wildlife values and 
     development activities.

     SEC. 6508. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaint.--
       (1) Deadline.--Subject to paragraph (2), any complaint 
     seeking judicial review of any provision of this title or any 
     action of the Secretary under this title shall be filed in 
     any appropriate district court of the United States--
       (A) except as provided in subparagraph (B), within the 90-
     day period beginning on the date of the action being 
     challenged; or
       (B) in the case of a complaint based solely on grounds 
     arising after such period, within 90 days after the 
     complainant knew or reasonably should have known of the 
     grounds for the complaint.
       (2) Venue.--Any complaint seeking judicial review of an 
     action of the Secretary under this title may be filed only in 
     the United States Court of Appeals for the District of 
     Columbia.
       (3) Limitation on scope of certain review.--Judicial review 
     of a Secretarial decision to conduct a lease sale under this 
     title, including the environmental analysis thereof, shall be 
     limited to whether the Secretary has complied with the terms 
     of this division and shall be based upon the administrative 
     record of that decision. The Secretary's identification of a 
     preferred course of action to enable leasing to proceed and 
     the Secretary's analysis of environmental effects under this 
     division shall be presumed to be correct unless shown 
     otherwise by clear and convincing evidence to the contrary.
       (b) Limitation on Other Review.--Actions of the Secretary 
     with respect to which review could have been obtained under 
     this section shall not be subject to judicial review in any 
     civil or criminal proceeding for enforcement.

     SEC. 6509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) Exemption.--Title XI of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall 
     not apply to the issuance by the Secretary under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185) of rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas.
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement referred to in subsection (a) 
     such terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the Coastal Plain, including requirements that facilities be 
     sited or designed so as to avoid unnecessary duplication of 
     roads and pipelines.
       (c) Regulations.--The Secretary shall include in 
     regulations under section 6503(g) provisions granting rights-
     of-way and easements described in subsection (a) of this 
     section.

     SEC. 6510. CONVEYANCE.

       In order to maximize Federal revenues by removing clouds on 
     title to lands and clarifying land ownership patterns within 
     the Coastal Plain, the Secretary, notwithstanding the 
     provisions of section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall 
     convey--
       (1) to the Kaktovik Inupiat Corporation the surface estate 
     of the lands described in paragraph 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. 6511. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Financial Assistance Authorized.--
       (1) In general.--The Secretary may use amounts available 
     from the Coastal Plain Local Government Impact Aid Assistance 
     Fund established by subsection (d) to provide timely 
     financial assistance to entities that are eligible under 
     paragraph (2) and that are directly impacted by the 
     exploration for or production of oil and gas on the Coastal 
     Plain under this title.
       (2) Eligible entities.--The North Slope Borough, Kaktovik, 
     and other boroughs, municipal subdivisions, villages, and any 
     other community organized under Alaska State law shall be 
     eligible for financial assistance under this section.
       (b) Use of Assistance.--Financial assistance under this 
     section may be used only for--
       (1) planning for mitigation of the potential effects of oil 
     and gas exploration and development on environmental, social, 
     cultural, recreational and subsistence values;
       (2) implementing mitigation plans and maintaining 
     mitigation projects; and
       (3) developing, carrying out, and maintaining projects and 
     programs that provide new or expanded public facilities and 
     services to address needs and problems associated with such 
     effects, including firefighting, police, water, waste 
     treatment, medivac, and medical services.
       (c) Application.--
       (1) In general.--Any community that is eligible for 
     assistance under this section may submit an application for 
     such assistance to the Secretary, in such form and under such 
     procedures as the Secretary may prescribe by regulation.
       (2) North slope borough communities.--A community located 
     in the North Slope Borough may apply for assistance under 
     this section either directly to the Secretary or through the 
     North Slope Borough.
       (3) Application assistance.--The Secretary shall work 
     closely with and assist the North Slope Borough and other 
     communities eligible for assistance under this section in 
     developing and submitting applications for assistance under 
     this section.
       (d) Establishment of Fund.--
       (1) In general.--There is established in the Treasury the 
     Coastal Plain Local Government Impact Aid Assistance Fund.
       (2) Use.--Amounts in the fund may be used only for 
     providing financial assistance under this section.
       (3) Deposits.--Subject to paragraph (4), there shall be 
     deposited into the fund amounts received by the United States 
     as revenues derived from rents, bonuses, and royalties under 
     on leases and lease sales authorized under this title.
       (4) Limitation on deposits.--The total amount in the fund 
     may not exceed $10,000,000.
       (5) Investment of balances.--The Secretary of the Treasury 
     shall invest amounts in the fund in interest bearing 
     government securities.
       (e) Authorization of Appropriations.--To provide financial 
     assistance under this section there is authorized to be 
     appropriated to

[[Page 23587]]

     the Secretary from the Coastal Plain Local Government Impact 
     Aid Assistance Fund $5,000,000 for each fiscal year.

     SEC. 6512. REVENUE ALLOCATION.

       (a) Federal and State Distribution.--
       (1) In general.--Notwithstanding section 6504 of this Act, 
     the Mineral Leasing Act (30 U.S.C. 181 et. seq.), or any 
     other law, of the amount of adjusted bonus, rental, and 
     royalty revenues from oil and gas leasing and operations 
     authorized under this title--
       (A) 50 percent shall be paid to the State of Alaska; and
       (B) the balance shall be deposited into the Renewable 
     Energy Technology Investment Fund and the Royalties 
     Conservation Fund as provided in this section.
       (2) Adjustments.--Adjustments to bonus, rental, and royalty 
     amounts from oil and gas leasing and operations authorized 
     under this title shall be made as necessary for overpayments 
     and refunds from lease revenues received in current or 
     subsequent periods before distribution of such revenues 
     pursuant to this section.
       (3) Timing of payments to state.--Payments to the State of 
     Alaska under this section shall be made semiannually.
       (b) Renewable Energy Technology Investment Fund.--
       (1) Establishment and availability.--There is hereby 
     established in the Treasury of the United States a separate 
     account which shall be known as the ``Renewable Energy 
     Technology Investment Fund''.
       (2) Deposits.--Fifty percent of adjusted revenues from 
     bonus payments for leases issued under this title shall be 
     deposited into the Renewable Energy Technology Investment 
     Fund.
       (3) Use, generally.--Subject to paragraph (4), funds 
     deposited into the Renewable Energy Technology Investment 
     Fund shall be used by the Secretary of Energy to finance 
     research grants, contracts, and cooperative agreements and 
     expenses of direct research by Federal agencies, including 
     the costs of administering and reporting on such a program of 
     research, to improve and demonstrate technology and develop 
     basic science information for development and use of 
     renewable and alternative fuels including wind energy, solar 
     energy, geothermal energy, and energy from biomass. Such 
     research may include studies on deployment of such technology 
     including research on how to lower the costs of introduction 
     of such technology and of barriers to entry into the market 
     of such technology.
       (4) Use for adjustments and refunds.--If for any 
     circumstances, adjustments or refunds of bonus amounts 
     deposited pursuant to this title become warranted, 50 percent 
     of the amount necessary for the sum of such adjustments and 
     refunds may be paid by the Secretary from the Renewable 
     Energy Technology Investment Fund.
       (5) Consultation and coordination.--Any specific use of the 
     Renewable Energy Technology Investment Fund shall be 
     determined only after the Secretary of Energy consults and 
     coordinates with the heads of other appropriate Federal 
     agencies.
       (6) Reports.--Not later than 1 year after the date of the 
     enactment of this Act and on an annual basis thereafter, the 
     Secretary of Energy shall transmit to the Committee on 
     Science of the House of Representatives and the Committee on 
     Energy and Natural Resources of the Senate a report on the 
     use of funds under this subsection and the impact of and 
     efforts to integrate such uses with other energy research 
     efforts.
       (c) Royalties Conservation Fund.--
       (1) Establishment and availability.--There is hereby 
     established in the Treasury of the United States a separate 
     account which shall be known as the ``Royalties Conservation 
     Fund''.
       (2) Deposits.--Fifty percent of revenues from rents and 
     royalty payments for leases issued under this title shall be 
     deposited into the Royalties Conservation Fund.
       (3) Use, generally.--Subject to paragraph (4), funds 
     deposited into the Royalties Conservation Fund--
       (A) may be used by the Secretary of the Interior and the 
     Secretary of Agriculture to finance grants, contracts, 
     cooperative agreements, and expenses for direct activities of 
     the Department of the Interior and the Forest Service to 
     restore and otherwise conserve lands and habitat and to 
     eliminate maintenance and improvements backlogs on Federal 
     lands, including the costs of administering and reporting on 
     such a program; and
       (B) may be used by the Secretary of the Interior to finance 
     grants, contracts, cooperative agreements, and expenses--
       (i) to preserve historic Federal properties;
       (ii) to assist States and Indian Tribes in preserving their 
     historic properties;
       (iii) to foster the development of urban parks; and
       (iv) to conduct research to improve the effectiveness and 
     lower the costs of habitat restoration.
       (4) Use for adjustments and refunds.--If for any 
     circumstances, refunds or adjustments of royalty and rental 
     amounts deposited pursuant to this title become warranted, 50 
     percent of the amount necessary for the sum of such 
     adjustments and refunds may be paid from the Royalties 
     Conservation Fund.
       (d) Availability.--Moneys covered into the accounts 
     established by this section--
       (1) shall be available for expenditure only to the extent 
     appropriated therefor;
       (2) may be appropriated without fiscal-year limitation; and
       (3) may be obligated or expended only as provided in this 
     section.

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

     SEC. 6601. ENERGY CONSERVATION BY THE DEPARTMENT OF THE 
                   INTERIOR.

       (a) In General.--The Secretary of the Interior shall--
       (1) conduct a study to identify, evaluate, and recommend 
     opportunities for conserving energy by reducing the amount of 
     energy used by facilities of the Department of the Interior; 
     and
       (2) wherever feasible and appropriate, reduce the use of 
     energy from traditional sources by encouraging use of 
     alternative energy sources, including solar power and power 
     from fuel cells, throughout such facilities and the public 
     lands of the United States.
       (b) Reports.--The Secretary shall submit to the Congress--
       (1) by not later than 90 days after the date of the 
     enactment of this Act, a report containing the findings, 
     conclusions, and recommendations of the study under 
     subsection (a)(1); and
       (2) by not later than December 31 each year, an annual 
     report describing progress made in--
       (A) conserving energy through opportunities recommended in 
     the report under paragraph (1); and
       (B) encouraging use of alternative energy sources under 
     subsection (a)(2).

     SEC. 6602. AMENDMENT TO BUY INDIAN ACT.

       Section 23 of the Act of June 25, 1910 (25 U.S.C. 47; 
     commonly known as the ``Buy Indian Act'') is amended by 
     inserting ``energy products, and energy by-products,'' after 
     ``printing,''.

                            TITLE VII--COAL

     SEC. 6701. LIMITATION ON FEES WITH RESPECT TO COAL LEASE 
                   APPLICATIONS AND DOCUMENTS.

       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 coal leases.

     SEC. 6702. MINING PLANS.

       Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 
     202a(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) The Secretary may establish a period of more than 40 
     years if the Secretary determines that the longer period--
       ``(i) will ensure the maximum economic recovery of a coal 
     deposit; or
       ``(ii) the longer period is in the interest of the orderly, 
     efficient, or economic development of a coal resources.''.

     SEC. 6703. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

       (a) In General.--Section 7(b) of the Mineral Leasing Act of 
     1920 (30 U.S.C. 207(b)) is amended to read as follows:
       ``(b)(1) Each lease shall be subjected to the condition of 
     diligent development and continued operation of the mine or 
     mines, except where operations under the lease are 
     interrupted by strikes, the elements, or casualties not 
     attributable to the lessee.
       ``(2)(A) The Secretary of the Interior, upon determining 
     that the public interest will be served thereby, may suspend 
     the condition of continued operation upon the payment of 
     advance royalties.
       ``(B) Such advance royalties shall be computed based on the 
     average price for coal sold in the spot market from the same 
     region during the last month of each applicable continued 
     operation year.
       ``(C) The aggregate number of years during the initial and 
     any extended term of any lease for which advance royalties 
     may be accepted in lieu of the condition of continued 
     operation shall not exceed 20.
       ``(3) The amount of any production royalty paid for any 
     year shall be reduced (but not below zero) by the amount of 
     any advance royalties paid under such lease to the extent 
     that such advance royalties have not been used to reduce 
     production royalties for a prior year.
       ``(4) This subsection shall be applicable to any lease or 
     logical mining unit in existence on the date of the enactment 
     of this paragraph or issued or approved after such date.
       ``(5) Nothing in this subsection shall be construed to 
     affect the requirement contained in the second sentence of 
     subsection (a) relating to commencement of production at the 
     end of 10 years.''.
       (b) Authority To Waive, Suspend, or Reduce Advance 
     Royalties.--Section 39 of the Mineral Leasing Act (30 U.S.C. 
     209) is amended by striking the last sentence.

     SEC. 6704. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL 
                   LEASE OPERATION AND RECLAMATION PLAN.

       Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) 
     is amended by striking ``and not later than three years after 
     a lease is issued,''.

[[Page 23588]]



               TITLE VIII--INSULAR AREAS ENERGY SECURITY

     SEC. 6801. INSULAR AREAS ENERGY SECURITY.

       Section 604 of the Act entitled ``An Act to authorize 
     appropriations for certain insular areas of the United 
     States, and for other purposes'', approved December 24, 1980 
     (Public Law 96-597; 94 Stat. 3480-3481), is amended--
       (1) in subsection (a)(4) by striking the period and 
     inserting a semicolon;
       (2) by adding at the end of subsection (a) the following 
     new paragraphs:
       ``(5) electric power transmission and distribution lines in 
     insular areas are inadequate to withstand damage caused by 
     the hurricanes and typhoons which frequently occur in insular 
     areas and such damage often costs millions of dollars to 
     repair; and
       ``(6) the refinement of renewable energy technologies since 
     the publication of the 1982 Territorial Energy Assessment 
     prepared pursuant to subsection (c) reveals the need to 
     reassess the state of energy production, consumption, 
     infrastructure, reliance on imported energy, and indigenous 
     sources in regard to the insular areas.'';
       (3) by amending subsection (e) to read as follows:
       ``(e)(1) The Secretary of the Interior, in consultation 
     with the Secretary of Energy and the chief executive officer 
     of each insular area, shall update the plans required under 
     subsection (c) by--
       ``(A) updating the contents required by subsection (c);
       ``(B) drafting long-term energy plans for such insular 
     areas with the objective of reducing, to the extent feasible, 
     their reliance on energy imports by the year 2010 and 
     maximizing, to the extent feasible, use of indigenous energy 
     sources; and
       ``(C) drafting long-term energy transmission line plans for 
     such insular areas with the objective that the maximum 
     percentage feasible of electric power transmission and 
     distribution lines in each insular area be protected from 
     damage caused by hurricanes and typhoons.
       ``(2) Not later than May 31, 2003, the Secretary of the 
     Interior shall submit to Congress the updated plans for each 
     insular area required by this subsection.''; and
       (4) by amending subsection (g)(4) to read as follows:
       ``(4) Power line grants for territories.--
       ``(A) In general.--The Secretary of the Interior is 
     authorized to make grants to governments of territories of 
     the United States to carry out eligible projects to protect 
     electric power transmission and distribution lines in such 
     territories from damage caused by hurricanes and typhoons.
       ``(B) Eligible projects.--The Secretary may award grants 
     under subparagraph (A) only to governments of territories of 
     the United States that submit written project plans to the 
     Secretary for projects that meet the following criteria:
       ``(i) The project is designed to protect electric power 
     transmission and distribution lines located in one or more of 
     the territories of the United States from damage caused by 
     hurricanes and typhoons.
       ``(ii) The project is likely to substantially reduce the 
     risk of future damage, hardship, loss, or suffering.
       ``(iii) The project addresses one or more problems that 
     have been repetitive or that pose a significant risk to 
     public health and safety.
       ``(iv) The project is not likely to cost more than the 
     value of the reduction in direct damage and other negative 
     impacts that the project is designed to prevent or mitigate. 
     The cost benefit analysis required by this criterion shall be 
     computed on a net present value basis.
       ``(v) The project design has taken into consideration long-
     term changes to the areas and persons it is designed to 
     protect and has manageable future maintenance and 
     modification requirements.
       ``(vi) The project plan includes an analysis of a range of 
     options to address the problem it is designed to prevent or 
     mitigate and a justification for the selection of the project 
     in light of that analysis.
       ``(vii) The applicant has demonstrated to the Secretary 
     that the matching funds required by subparagraph (D) are 
     available.
       ``(C) Priority.--When making grants under this paragraph, 
     the Secretary shall give priority to grants for projects 
     which are likely to--
       ``(i) have the greatest impact on reducing future disaster 
     losses; and
       ``(ii) best conform with plans that have been approved by 
     the Federal Government or the government of the territory 
     where the project is to be carried out for development or 
     hazard mitigation for that territory.
       ``(D) Matching requirement.--The Federal share of the cost 
     for a project for which a grant is provided under this 
     paragraph shall not exceed 75 percent of the total cost of 
     that project. The non-Federal share of the cost may be 
     provided in the form of cash or services.
       ``(E) Treatment of funds for certain purposes.--Grants 
     provided under this paragraph shall not be considered as 
     income, a resource, or a duplicative program when determining 
     eligibility or benefit levels for Federal major disaster and 
     emergency assistance.
       ``(F) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $5,000,000 for 
     each fiscal year beginning after the date of the enactment of 
     this paragraph.''.

                               DIVISION G

     SEC. 7101. BUY AMERICAN.

       No funds authorized under this Act shall be available to 
     any person or entity that has been convicted of violating the 
     Buy American Act (41 U.S.C. 10a-10c).

                               DIVISION H

     SEC. 8101. PROHIBITION ON HUMAN CLONING.

       (a) In General.--Title 18, United States Code, is amended 
     by inserting after chapter 15, the following:

                      ``CHAPTER 16--HUMAN CLONING

``Sec.
``301. Definitions.
``302. Prohibition on human cloning.

     ``Sec. 301. Definitions

       ``In this chapter:
       ``(1) Human cloning.--The term `human cloning' means human 
     asexual reproduction, accomplished by introducing nuclear 
     material from one or more human somatic cells into a 
     fertilized or unfertilized oocyte whose nuclear material has 
     been removed or inactivated so as to produce a living 
     organism (at any stage of development) that is genetically 
     virtually identical to an existing or previously existing 
     human organism.
       ``(2) Asexual reproduction.--The term `asexual 
     reproduction' means reproduction not initiated by the union 
     of oocyte and sperm.
       ``(3) Somatic cell.--The term `somatic cell' means a 
     diploid cell (having a complete set of chromosomes) obtained 
     or derived from a living or deceased human body at any stage 
     of development.

     ``Sec. 302. Prohibition on human cloning

       ``(a) In General.--It shall be unlawful for any person or 
     entity, public or private, in or affecting interstate 
     commerce, knowingly--
       ``(1) to perform or attempt to perform human cloning;
       ``(2) to participate in an attempt to perform human 
     cloning; or
       ``(3) to ship or receive for any purpose an embryo produced 
     by human cloning or any product derived from such embryo.
       ``(b) Importation.--It shall be unlawful for any person or 
     entity, public or private, knowingly to import for any 
     purpose an embryo produced by human cloning, or any product 
     derived from such embryo.
       ``(c) Penalties.--
       ``(1) Criminal penalty.--Any person or entity that violates 
     this section shall be fined under this title or imprisoned 
     not more than 10 years, or both.
       ``(2) Civil penalty.--Any person or entity that violates 
     any provision of this section shall be subject to, in the 
     case of a violation that involves the derivation of a 
     pecuniary gain, a civil penalty of not less than $1,000,000 
     and not more than an amount equal to the amount of the gross 
     gain multiplied by 2, if that amount is greater than 
     $1,000,000.
       ``(d) Scientific Research.--Nothing in this section 
     restricts areas of scientific research not specifically 
     prohibited by this section, including research in the use of 
     nuclear transfer or other cloning techniques to produce 
     molecules, DNA, cells other than human embryos, tissues, 
     organs, plants, or animals other than humans.''.
       (b) Study and Report.--
       (1) In general.--The General Accounting Office shall 
     conduct a study to assess the need (if any) for amendment of 
     the prohibition on human cloning, as defined in section 301 
     of title 18, United States Code, as added by this section, 
     which study shall include--
       (A) a discussion of new developments in medical technology 
     concerning human cloning and somatic cell nuclear transfer, 
     the need (if any) for somatic cell nuclear transfer to 
     produce medical advances, current public attitudes and 
     prevailing ethical views concerning the use of somatic cell 
     nuclear transfer, and potential legal implications of 
     research in somatic cell nuclear transfer; and
       (B) a review of any technological developments that may 
     require that technical changes be made to chapter 16 of title 
     18, United States Code, as added by this section.
       (2) Report.--The General Accounting Office shall transmit 
     to Congress, within 4 years after the date of enactment of 
     this Act, a report containing the findings and conclusions of 
     its study, together with recommendations for any legislation 
     or administrative actions which it considers appropriate.
       (c) Clerical Amendment.--The table of chapters for part I 
     of title 18, United States Code, is amended by inserting 
     after the item relating to chapter 15 the following:

``16. Human Cloning..........................................301''.....

       (d) Effective Date.--This section, and the amendments made 
     by this section, shall take effect the day after the date of 
     enactment of this Act, and shall expire on the date that is 
     180 days after the date of enactment of this Act.
                                  ____

  SA 2172. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1743, to create a temporary reinsurance mechanism 
to enhance the availability of terrorism

[[Page 23589]]

insurance; which was referred to the Committee on Commerce, Science, 
and Transportation, as follows:

       At the appropriate place, insert the following:

     SEC.   . TAX-EXEMPT STATUS OF TERRORISM RISK-RELATED 
                   INCREASED PREMIUM PASSTHROUGH ACCOUNTS.

       Amounts received by participating insurers as increased 
     premiums under section 9(a) and deposited in the separate 
     segregated account required by section 9(b), and amounts 
     earned as interest, dividends, or other income on funds 
     deposited in such account, shall be exempt from all Federal, 
     State, and local income and excise taxes, and may not be 
     taken into account for the purpose of determining any other 
     tax liability of the participating insurer.
                                  ____

  SA 2173. Mr. BURNS submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

              TITLE IX--CAPITAL GRANTS FOR RAILROAD TRACK

     SEC. 901. ESTABLISHMENT OF PROGRAM.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroad track (including 
     roadbed, bridges, and related track structures) of class II 
     and class III railroads. Such grants shall be for 
     rehabilitating, preserving, or improving track used primarily 
     for freight transportation to a standard ensuring that the 
     track can be operated safely and efficiently, including 
     grants for rehabilitating, preserving, or improving track to 
     handle 286,000 pound rail cars. Grants may be provided under 
     this chapter--
       ``(A) directly to the class II or class III railroad; or
       ``(B) with the concurrence of the class II or class III 
     railroad, to a State or local government.
       ``(2) State cooperation.--Class II and class III railroad 
     applicants for a grant under this chapter are encouraged to 
     utilize the expertise and assistance of State transportation 
     agencies in applying for and administering such grants. State 
     transportation agencies are encouraged to provide such 
     expertise and assistance to such railroads.
       ``(3) Interim regulations.--Not later than December 31, 
     2001, the Secretary shall issue temporary regulations to 
     implement the program under this section. Subchapter II of 
     chapter 5 of title 5 does not apply to a temporary regulation 
     issued under this paragraph or to an amendment to such a 
     temporary regulation.
       ``(4) Final regulations.--Not later than October 1, 2002, 
     the Secretary shall issue final regulations to implement the 
     program under this section.
       ``(b) Maximum Federal Share.--The maximum Federal share for 
     carrying out a project under this section shall be 80 percent 
     of the project cost. The non-Federal share may be provided by 
     any non-Federal source in cash, equipment, or supplies. Other 
     in-kind contributions may be approved by the Secretary on a 
     case by case basis consistent with this chapter.
       ``(c) Project Eligibility.--For a project to be eligible 
     for assistance under this section the track must have been 
     operated or owned by a class II or class III railroad as of 
     the date of the enactment of the Railroad Track Modernization 
     Act of 2001.
       ``(d) Use of Funds.--Grants provided under this section 
     shall be used to implement track capital projects as soon as 
     possible. In no event shall grant funds be contractually 
     obligated for a project later than the end of the third 
     Federal fiscal year following the year in which the grant was 
     awarded. Any funds not so obligated by the end of such fiscal 
     year shall be returned to the Secretary for reallocation.
       ``(e) Additional Purpose.--In addition to making grants for 
     projects as provided in subsection (a), the Secretary may 
     also make grants to supplement direct loans or loan 
     guarantees made under title V of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)), for 
     projects described in the last sentence of section 502(d) of 
     such title. Grants made under this subsection may be used, in 
     whole or in part, for paying credit risk premiums, lowering 
     rates of interest, or providing for a holiday on principal 
     payments.
       ``(f) Employee Protection.--The Secretary shall require as 
     a condition of any grant made under this section that the 
     recipient railroad provide a fair arrangement at least as 
     protective of the interests of employees who are affected by 
     the project to be funded with the grant as the terms imposed 
     under section 11326(a), as in effect on the date of the 
     enactment of the Railroad Track Modernization Act of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).
       ``(h) Study.--The Secretary shall conduct a study of the 
     projects carried out with grant assistance under this section 
     to determine the public interest benefits associated with the 
     light density railroad networks in the States and their 
     contribution to a multimodal transportation system. Not later 
     than March 31, 2003, the Secretary shall report to Congress 
     any recommendations the Secretary considers appropriate 
     regarding the eligibility of light density rail networks for 
     Federal infrastructure financing.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of 
     Transportation $350,000,000 for each of the fiscal years 2002 
     through 2004 for carrying out this section.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:
22301''.ITAL GRANTS FOR RAILROAD TRACK...............................
                                  ____

  SA 2174. Mr. BURNS submitted an amendment intended to be proposed by 
him to the bill H.R. 10, to provide for pension reform, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

        TITLE IX--RAILROAD COMPETITION, ARBITRATION, AND SERVICE

     SEC. 901. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES 
                   CODE.

       (a) Short Title.--This title may be cited as the ``Railroad 
     Competition, Arbitration, and Service Act of 2001''.
       (b) Amendment of Title 49, United States Code.--Except as 
     otherwise expressly provided, whenever in this title an 
     amendment or repeal is expressed in terms of an amendment to, 
     or a repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 49, United States Code.

     SEC. 902. PURPOSES.

       The purposes of this title are as follows:
       (1) To eliminate unreasonable barriers to competition among 
     rail carriers.
       (2) To provide for use of expedited, private means for the 
     resolution of disputes between shippers and carriers.

     SEC. 903. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

       Section 10101 is amended--
       (1) by inserting ``(a) In General.--'' before ``In 
     regulating''; and
       (2) by adding at the end the following:
       ``(b) Primary Objectives.--The primary objectives of the 
     rail transportation policy of the United States are as 
     follows:
       ``(1) To ensure effective competition among rail carriers 
     at origins and destinations.
       ``(2) To maintain reasonable rates for rail transportation 
     where effective competition among rail carriers has not been 
     achieved.
       ``(3) To maintain consistent and efficient rail 
     transportation service for shippers.''.

     SEC. 904. ARBITRATION OF CERTAIN RAIL RATE, SERVICE, AND 
                   OTHER DISPUTES.

       (a) In General.--
       (1) Authority.--Chapter 117 of title 49 is amended by 
     adding the following section after section 11707:

     ``Sec. 11708. Arbitration of certain rail rate, service, and 
       other disputes

       ``(a) Election of Arbitration.--A dispute described in 
     subsection (b) shall be submitted for resolution by 
     arbitration upon the election of any party to the dispute 
     that is not a rail carrier.
       ``(b) Covered Disputes.--(1) Except as provided in 
     paragraph (2), subsection (a) applies to any dispute between 
     a party described in subsection (a) and a rail carrier that--
       ``(A) arises under section 10701(c), 10701(d), 10702, 
     10704(a)(1), 10707, 10741, 10745, 10746, 11101(a), 11102, 
     11121, 11122, or 11706 of this title; and
       ``(B) involves--
       ``(i) the payment of money;
       ``(ii) a rate charged by the rail carrier; or
       ``(iii) transportation by the rail carrier.
       ``(2) Subsection (a) does not apply to a dispute if the 
     resolution of the dispute would necessarily involve the 
     promulgation of regulations generally applicable to all rail 
     carriers.
       ``(c) Arbitration Procedures.--The Secretary of 
     Transportation shall prescribe in

[[Page 23590]]

     regulations the procedures for the resolution of disputes 
     submitted for arbitration under subsection (a). The 
     regulations shall include the following:
       ``(1) Procedures, including time limits, for the selection 
     of an arbitrator or panel of arbitrators for a dispute from 
     among arbitrators listed on the roster of arbitrators 
     established and maintained by the Secretary under subsection 
     (d)(1).
       ``(2) Policies, requirements, and procedures for the 
     compensation of each arbitrator for a dispute to be paid by 
     the parties to the dispute.
       ``(3) Procedures for expedited arbitration of a dispute, 
     including procedures for discovery authorized in the exercise 
     of discretion by the arbitrator or panel of arbitrators.
       ``(d) Selection of Arbitrators.--(1) The Secretary of 
     Transportation shall establish, maintain, and revise as 
     necessary a roster of arbitrators who--
       ``(A) are experienced in transportation or economic issues 
     within the jurisdiction of the Board or issues similar to 
     those issues;
       ``(B) satisfy requirements for neutrality and other 
     qualification requirements prescribed by the Secretary;
       ``(C) consent to serve as arbitrators under this section; 
     and
       ``(D) are not officers or employees of the United States.
       (2) For a dispute involving an amount not in excess of 
     $1,000,000, the regulations under subsection (c) shall 
     provide for arbitration by a single arbitrator selected by--
       ``(A) the parties to the dispute; or
       ``(B) if the parties cannot agree, the Secretary of 
     Transportation, from the roster of arbitrators prescribed 
     under paragraph (1).
       ``(3)(A) For a dispute involving an amount in excess of 
     $1,000,000, the regulations under subsection (c) shall 
     provide for arbitration by a panel of three arbitrators 
     selected as follows:
       ``(i) One arbitrator selected by the party electing the 
     arbitration.
       ``(ii) One arbitrator selected by the rail carrier or all 
     of the rail carriers who are parties to the dispute, as the 
     case may be.
       ``(iii) One arbitrator selected by the two arbitrators 
     selected under clauses (i) and (ii).
       ``(B) If a selection of an arbitrator is not made under 
     clause (ii) or (iii) of subparagraph (A) within the time 
     limits prescribed in the regulations, then the Secretary 
     shall select the arbitrator from the roster of arbitrators 
     prescribed under paragraph (1).
       ``(e) Disputes on Rates or Charges.--(1) The requirements 
     of this subsection apply to a dispute submitted under this 
     section for resolution of an issue of the reasonableness of a 
     rate or charge imposed by a rail carrier.
       ``(2)(A) Subject to subparagraph (B), the decision of an 
     arbitrator or panel of arbitrators in a dispute on an issue 
     described in paragraph (1) shall be one of the final offers 
     of the parties to the dispute.
       ``(B) A decision under subparagraph (A) may not provide for 
     a rate for transportation by a rail carrier that would result 
     in a revenue-variable cost percentage for such transportation 
     that is less than 180 percent, as determined under standards 
     applied in the administration of section 10707(d) of this 
     title.
       ``(3) If the party electing arbitration of a dispute 
     described in paragraph (1) seeks compensation for damages 
     incurred by the party as a result of a specific rate or 
     charge imposed by a rail carrier for the transportation of 
     items for the party and the party alleges an amount of 
     damages that does not exceed $500,000 for any year as a 
     result of the imposition of the specific rate or charge, the 
     arbitrator, in making a decision on the dispute, shall 
     consider the rates or charges, respectively, that are imposed 
     by rail carriers for the transportation of similar items 
     under similar circumstances in rail transportation markets 
     where there is effective competition, as determined under 
     standards applied by the Board in the administration of 
     section 10707(a) of this title.
       ``(f) Time for Issuance of Arbitration Decision.--
     Notwithstanding any other provision of this subtitle limiting 
     the time for the taking of an action under this subtitle, the 
     arbitrator or panel of arbitrators for a dispute submitted 
     for resolution under this section shall issue a final 
     decision on the dispute within the maximum period after the 
     date on which the arbitrator or panel is selected to resolve 
     the dispute under this section, as follows:
       ``(1) In the case of a dispute involving $1,000,000 or 
     less, 120 days.
       ``(2) In the case of a dispute involving more than 
     $1,000,000, 180 days.
       ``(g) Authorized Relief.--A decision of an arbitrator or 
     panel of arbitrators under this section may grant relief in 
     either or both of the following forms:
       ``(1) Monetary damages, to the extent authorized to be 
     provided by the Board in such a dispute under this subtitle.
       ``(2) An order that requires specific performance of any 
     obligation under a statute determined to be applicable, 
     including any limitation of rates to reasonable rates, for 
     any period not in excess of two years beginning on the date 
     of the decision.
       ``(h) Judicial Confirmation and Review.--The following 
     provisions of title 9 shall apply to an arbitration decision 
     issued in a dispute under this section:
       ``(1) Section 9 (relating to confirmation of an award in an 
     arbitration decision), which shall be applied as if the 
     parties had entered into an agreement under title 9 to submit 
     the dispute to the arbitration and had provided in that 
     agreement for a judgment of an unspecified court to be 
     entered on the award made pursuant to the arbitration.
       ``(2) Section 10 (relating to judicial vacation of an award 
     in an arbitration decision).''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 11707 the following:

``11708. Arbitration of certain rail rate, service, and other 
              disputes.''.
       (b) Time for Implementing Certain Requirements.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Secretary of Transportation shall promulgate regulations, 
     prescribe a roster of arbitrators, and complete any other 
     action that is necessary for the implementation of section 
     11708 of title 49, United States Code (as added by subsection 
     (a)).

     SEC. 905. ELIMINATION OF BARRIERS TO COMPETITION BETWEEN 
                   CLASS I CARRIERS AND CLASS II AND CLASS III 
                   CARRIERS.

       (a) Restriction on Approval or Exemption of Carriers' 
     Activities by Surface Transportation Board.--Section 10901 is 
     amended by adding at the end the following new subsection:
       ``(e)(1) The Board may not issue under this section a 
     certificate authorizing an activity described in subsection 
     (a), or exempt from the applicability of this section under 
     section 10502 of this title such an activity that involves a 
     transfer of interest in a line of railroad, by a Class I rail 
     carrier to a Class II or III rail carrier if the activity 
     directly or indirectly would result in--
       ``(A) a restriction of the ability of the Class II or Class 
     III rail carrier to interchange traffic with other carriers; 
     or
       ``(B) a restriction of competition between or among rail 
     carriers in the region affected by the activity in a manner 
     or to an extent that would violate antitrust laws of the 
     United States (notwithstanding any exemption from the 
     applicability of antitrust laws that is provided under 
     section 10706 of this title or any other provision of law).
       ``(2) Any party to an activity referred to in paragraph (1) 
     that has been carried out, or any rail shipper affected by 
     such an activity, may request the Board to review the 
     activity to determine whether the activity has resulted in a 
     restriction described in that paragraph. If, upon review of 
     the activity, the Board determines that the activity resulted 
     in such a restriction and the restriction has been in effect 
     for at least 10 years, the Board shall declare the 
     restriction to be unlawful and terminate the restriction 
     unless the Board finds that the termination of the 
     restriction would materially impair the ability of an 
     affected rail carrier to provide service to the public or 
     would otherwise be inconsistent with the public interest.
       ``(3) In this subsection:
       ``(A) The term`antitrust laws' has the meaning given that 
     term in subsection (a) of the first section of the Clayton 
     Act (15 U.S.C. 12(a)), except that such term also means 
     section 5 of the Federal Trade Commission Act (15 U.S.C. 45) 
     to the extent that such section 5 applies to unfair methods 
     of competition.
       ``(B) The terms `class I rail carrier', `class II rail 
     carrier', and `class III rail carrier' mean, respectively, a 
     rail carrier classified under regulations of the Board as a 
     Class I rail carrier, Class II rail carrier, and Class III 
     rail carrier.''.
       (b) Applicability to Previously Approved or Exempted 
     Activities.--Paragraph (2) of section 10901(e) of title 49, 
     United States Code (as added by subsection (a)), shall apply 
     with respect to any activity referred to in that paragraph 
     for which the Surface Transportation Board issued a 
     certificate authorizing the activity under section 10901 of 
     such title, or exempted the activity from the necessity for 
     such a certificate under section 10502 of such title, before, 
     on, or after the date of the enactment of this Act.

     SEC. 906. SYSTEM WIDE COMPETITION.

       (a) Trackage Rights.--Chapter 111 is amended by inserting 
     after section 11102 the following new section:

     ``Sec. 11102a. Trackage rights

       ``(a) Alternative Rail Carrier Service.--(1) A person who 
     uses or seeks to use rail service for major train load 
     shipments to or from a facility (whether located in a 
     terminal area or served by terminal facilities) that has 
     physical access solely to one rail carrier may request, as 
     provided in this subsection, that rail service for such 
     shipments be provided to or from that facility by--


       ``(A) an existing Class I rail carrier; or
       ``(B) an existing Class II rail carrier, existing Class III 
     rail carrier, or new rail service provider that, as 
     determined by the Federal Railroad Administration before the 
     person makes the request--
       ``(i) is or is likely to be capable of transporting the 
     major train load shipments over the facilities of the one 
     rail carrier to or from the facility with the physical access 
     solely to that rail carrier;
       ``(ii) is or is likely to be capable of doing so in 
     compliance with applicable Federal Railroad Administration 
     regulations and with

[[Page 23591]]

     the operating and safety rules of the rail carrier 
     responsible for dispatching for the use of the facilities; 
     and
       ``(iii) has or is likely to have the financial ability (or 
     insurance coverage with limits customary in the railroad 
     industry) to satisfy liability claims arising from its 
     operations.
       ``(2) For the purposes of this section a major train load 
     shipment is any train load shipment that consists of 50 or 
     more rail cars and is tendered all at one time on a single 
     bill of lading.
       ``(b) Procedure for Requesting Service.--(1) A person 
     seeking under subsection (a) to obtain from an alternative 
     rail service provider transportation for major train load 
     shipments to or from a facility described in paragraph (1) of 
     that subsection shall file with the Board a notice of intent 
     to request that service. The notice shall include the 
     following:
       ``(A) A description of the facilities to be used by the 
     alternative service provider.
       ``(B) A statement that the person has attempted without 
     success, through negotiations with the rail carrier that has 
     been providing the person with rail service to or from the 
     facility, to obtain the proposed service from that rail 
     carrier on terms similar to those available from the 
     alternative rail service provider.
       ``(C) Any other details of the proposed service.
       ``(D) If the alternative rail service provider is a 
     provider described in subparagraph (B) of subsection (a)(1), 
     a certification by the Federal Railroad Administration of the 
     determinations required for eligibility under that 
     subparagraph.
       ``(2)(A) Subject to subparagraph (D), rail service 
     described in a notice filed with the Board under paragraph 
     (1) may be provided by the alternative rail service provider 
     referred to in the notice beginning 60 days after the notice 
     is so filed unless, before the expiration of that 60-day 
     period, the Board determines that the alternative rail 
     service provider's use of the facilities involved--
       ``(i) will be unsafe;
       ``(ii) is not operationally feasible; or
       ``(iii) will substantially impair the ability of the other 
     rail carrier or rail carriers using the facilities to provide 
     transportation over those facilities in accordance with the 
     reasonable requirements of the customers served by the other 
     carrier or carriers as of the date of the Board's 
     determination.
       ``(B) The rail carrier or carriers that own or provide 
     transportation over the facilities to be used by an 
     alternative rail service provider in rail service covered by 
     a notice filed with the Board under paragraph (1) shall have 
     the burden of proving the matters described in clauses (i), 
     (ii), and (iii) of subparagraph (A).
       ``(C) The Board shall consult with the Federal Railroad 
     Administration in determining the facts regarding any 
     allegation by a rail carrier or rail carriers that an 
     alternative rail service provider's use of facilities would 
     be unsafe.
       ``(D) An alternative rail service provider may not begin to 
     provide any rail service under subparagraph (A) before the 
     provider's train crews are qualified to operate over the 
     facilities to be used to provide the service, as determined 
     under rules applicable to such operations.
       ``(c) Dispatching and Other Responsibilities.--(1) The rail 
     carrier responsible for controlling rail operations on, or 
     for dispatching for the use of, facilities used by any 
     alternative rail service provider pursuant to a notice filed 
     with the Board under subsection (b) shall--
       ``(A) continue to perform those functions for all rail 
     carriers using the facilities, including the alternative rail 
     service provider; and
       ``(B) dispatch trains for the alternative rail service 
     provider, without discrimination, on the same basis that the 
     rail carrier would apply if it were providing the 
     transportation for the traffic transported by the alternative 
     rail service provider.
       ``(2) The Board shall have jurisdiction over, and shall 
     promptly resolve, any disputes arising under paragraph 
     (1)(B).
       ``(d) Compensation for Use of Facilities.--(1) An 
     alternative rail service provider that, pursuant to a notice 
     filed with the Board under subsection (b), is providing 
     transportation over facilities owned by another rail carrier 
     shall compensate the owner of the facilities on such terms as 
     the alternative rail service provider and the owner may 
     agree. The terms of compensation shall be adjusted annually, 
     as the parties may agree, effective as of the anniversary of 
     the date on which the alternative rail service provider began 
     to use the facilities.
       ``(2)(A) The terms of compensation for an owner of 
     facilities for the use of facilities by an alternative rail 
     service provider shall be established on a basis that 
     provides for the alternative rail service provider to 
     compensate the owner at a level that--
       ``(i) defrays the relevant costs incurred by the owner for 
     transportation over those facilities to the extent of a share 
     that is proportionate to the use of those facilities by the 
     alternative rail service provider in relation to the use of 
     those facilities by all users of the facilities; and
       ``(ii) provides the owner with a reasonable return on and 
     of the owner's net book investment in road property for the 
     facilities (exclusive of write-ups or write-downs resulting 
     from mergers and consolidations of any of the facilities that 
     were acquired from another rail carrier on or after July 1, 
     1995).
       ``(B) For the purposes of subparagraph (A), an alternative 
     rail service provider's proportionate share of the total 
     relevant costs incurred by the owner of facilities for the 
     use of facilities during the first 12 months of the 
     provider's use of the facilities pursuant to a notice filed 
     with the Board under subsection (b) shall be the ratio of--
       ``(i) the extent to which the alternative rail service 
     provider is reasonably expected to use the facilities during 
     that 12-month period, measured in gross ton-miles, to
       ``(ii) the total volume of the use of the facilities by all 
     users of the facilities during the 12 calendar months 
     preceding the month in which the notice was filed with the 
     Board, measured in gross ton-miles.
       ``(C) For the purpose of calculating an annual adjustment 
     of the terms of compensation for an owner of facilities for 
     the use of those facilities for rail service by an 
     alternative rail service provider, the ratio applied under 
     subparagraph (A) for determining the alternative rail service 
     provider's proportionate share of the total relevant costs 
     incurred by the owner of facilities for the use of facilities 
     shall be the ratio of--
       ``(i) the total volume of the use of the facilities by the 
     alternative rail service provider during the 12 calendar 
     months preceding the month in which the adjustment takes 
     effect, measured in gross ton-miles, to
       ``(ii) the total volume of the use of the facilities by all 
     users of the facilities during those 12 months, measured in 
     gross ton-miles.
       ``(D) For the purposes of subparagraph (A), the total 
     relevant costs for use of facilities shall include the 
     following:
       ``(i) Roadway maintenance expenses.
       ``(ii) Costs reasonably related to the dispatching or 
     control of the operation of users' trains.
       ``(iii) Any ad valorem taxes.
       ``(3)(A) If the owner of facilities to be used by an 
     alternative rail service provider pursuant to a notice filed 
     with the Board under subsection (b) and the alternative rail 
     service provider do not agree on the terms of compensation 
     for the initial use of the facilities before the expiration 
     of the 60-day period applicable to the notice under paragraph 
     (2) of that subsection (b), either party (or the person 
     requesting the rail service from the alternative rail service 
     provider) may request the Board to establish the terms of 
     compensation. The Board shall establish those terms of 
     compensation, in accordance with the standards applicable 
     under this subsection, within 60 days after receiving such a 
     request. The terms so established shall be effective 
     retroactively as of the date on which the 60-day period 
     applicable under subsection (b)(2) expires.
       ``(B) If the owner of facilities and an alternative rail 
     service provider do not agree on an annual adjustment to 
     terms of compensation under paragraph (1) before the 
     anniversary of the date on which the alternative rail service 
     provider began to use the facilities, either party may submit 
     the dispute to the Board. The Board shall resolve the dispute 
     within 60 days after the dispute is submitted. Any adjustment 
     pursuant to a resolution of the dispute shall take effect 
     retroactively as of that anniversary date.
       ``(e) New and Enhanced Facilities.--(1) If it is necessary 
     for an owner of facilities to construct a new connecting 
     track or interlocker or any other new facility or to improve 
     a connecting track, interlocker, or other facility of that 
     owner solely to accommodate the commencement of rail service 
     by an alternative rail service provider under this section, 
     the person requesting the rail service by the alternative 
     rail service provider over those facilities shall pay the 
     entire reasonable cost of the construction or improvement. 
     The owner constructing the new facility or facilities shall 
     own the newly constructed or improved facility or facilities, 
     as the case may be.
       ``(2) If, at any time during the period of use of 
     facilities by one or more alternative rail service providers 
     pursuant to this section, it is necessary to construct or 
     improve facilities to ensure the safe or efficient operation 
     of rail service by the alternative rail service providers and 
     all other rail carriers using the facilities to provide rail 
     service, the reasonable cost of the construction or 
     improvement shall be shared by the owner and each of the 
     users of the facilities on such terms as those parties may 
     agree. Any dispute concerning such terms shall be promptly 
     resolved by the Board upon the request of any such user.
       ``(f) Relationship to Other Authorities.--This section may 
     not be construed to provide an exclusive remedy, nor to limit 
     the availability of any other remedy under this part, to 
     users of rail transportation for the enhancement of 
     intramodal rail competition.''.
       (b) Clerical Amendment.--The table of contents at the 
     beginning of such chapter is amended by inserting after 
     section 11102 the following new item:

``11102a. Trackage rights.''.

     SEC. 907. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     title and the amendments made by this title shall take effect 
     on January 1, 2002.


       (b) Exceptions.--Section 906 and the amendment made by that 
     section shall take effect on the date of enactment of this 
     Act.

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