[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[Senate]
[Pages 12398-12493]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 775. Mr. DOMENICI proposed an amendment to the bill H.R. 6, 
Reserved; 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 ``Energy 
     Policy Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Federal building performance standards.
Sec. 108. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.

            Subtitle B--Energy Assistance and State Programs

Sec. 121. Weatherization assistance.
Sec. 122. State energy programs.
Sec. 123. Energy efficient appliance rebate programs.
Sec. 124. Energy efficient public buildings.
Sec. 125. Low income community energy efficiency pilot program.
Sec. 126. State technologies advancement collaborative.
Sec. 127. Model building energy code compliance grant program.

                 Subtitle C--Energy Efficient Products

Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Expedited rulemaking.
Sec. 138. Energy labeling.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Energy efficiency resource programs.

               Subtitle D--Measures to Conserve Petroleum

Sec. 151. Reduction of dependence on imported petroleum.

                Subtitle E--Energy Efficiency in Housing

Sec. 161. Public Housing Capital Fund.
Sec. 162. Energy efficient appliances.
Sec. 163. Energy efficiency standards.
Sec. 164. Energy strategy for the Department of Housing and Urban 
              Development.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Renewable content of motor vehicle fuel.
Sec. 205. Federal agency ethanol-blended gasoline and biodiesel 
              purchasing requirement.
Sec. 206. Data collection.
Sec. 207. Sugar cane ethanol program.
Sec. 208. Modification of Commodity Credit Corporation bioenergy 
              program.
Sec. 209. Advanced biofuel technologies program.
Sec. 210. Assistance for rural communities with high energy costs.

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                       Subtitle B--Insular Energy

Sec. 221. Definitions.
Sec. 222. Assessment.
Sec. 223. Project feasibility studies.
Sec. 224. Implementation.
Sec. 225. Authorization of appropriations.

                       Subtitle C--Biomass Energy

Sec. 231. Definitions.
Sec. 232. Biomass commercial utilization grant program.
Sec. 233. Improved biomass utilization program.
Sec. 234. Report.

                     Subtitle D--Geothermal Energy

Sec. 241. Competitive lease sale requirements.
Sec. 242. Direct use.
Sec. 243. Royalties.
Sec. 244. Geothermal leasing and permitting on Federal land.
Sec. 245. Assessment of geothermal energy potential.
Sec. 246. Cooperative or unit plans.
Sec. 247. Royalty on byproducts.
Sec. 248. Lease duration and work commitment requirements.
Sec. 249. Annual rental.
Sec. 250. Advanced royalties required for cessation of production.
Sec. 251. Leasing and permitting on Federal land withdrawn for military 
              purposes.
Sec. 252. Technical amendments.

                       Subtitle E--Hydroelectric

Sec. 261. Alternative conditions and fishways.
Sec. 262. Alaska State jurisdiction over small hydroelectric projects.
Sec. 263. Flint Creek hydroelectric project.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Sec. 301. Permanent authority to operate the Strategic Petroleum 
              Reserve and other energy programs.
Sec. 302. National Oilheat Research Alliance.

                   Subtitle B--Production Incentives

Sec. 311. Definition of Secretary.
Sec. 312. Program on oil and gas royalties in-kind.
Sec. 313. Marginal property production incentives.
Sec. 314. Incentives for natural gas production from deep wells in the 
              shallow waters of the Gulf of Mexico.
Sec. 315. Royalty relief for deep water production.
Sec. 316. Alaska offshore royalty suspension.
Sec. 317. Oil and gas leasing in the National Petroleum Reserve in 
              Alaska.
Sec. 318. North slope science initiative.
Sec. 319. Orphaned, abandoned, or idled wells on Federal land.
Sec. 320. Combined hydrocarbon leasing.
Sec. 321. Alternate energy-related uses on the outer Continental Shelf.
Sec. 322. Preservation of geological and geophysical data.
Sec. 323. Oil and gas lease acreage limitations.
Sec. 324. Assessment of dependence of State of Hawaii on oil.
Sec. 325. Denali Commission.
Sec. 326. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 327. Review and demonstration program for oil and natural gas 
              production.

                   Subtitle C--Access to Federal Land

Sec. 341. Federal onshore oil and gas leasing practices.
Sec. 342. Management of Federal oil and gas leasing programs.
Sec. 343. Consultation regarding oil and gas leasing on public land.
Sec. 344. Pilot project to improve Federal permit coordination.
Sec. 345. Energy facility rights-of-ways and corridors on Federal land.
Sec. 346. Oil shale leasing.

                      Subtitle D--Coastal Programs

Sec. 371. Coastal impact assistance program.

                        Subtitle E--Natural Gas

Sec. 381. Exportation or importation of natural gas.
Sec. 382. New natural gas storage facilities. 
Sec. 383. Process coordination; hearings; rules of procedures.
Sec. 384. Penalties.
Sec. 385. Market manipulation.
Sec. 386. Natural gas market transparency rules.
Sec. 387. Deadline for decision on appeals of consistency determination 
              under the Coastal Zone Management Act of 1972.
Sec. 388. Federal-State liquefied natural gas forums.
Sec. 389. Prohibition of trading and serving by certain persons.

             Subtitle F--Federal Coalbed Methane Regulation

Sec. 391. Federal coalbed methane regulation.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.
Sec. 405. Integrated coal/renewable energy system.
Sec. 406. Loan to place Alaska clean coal technology facility in 
              service.
Sec. 407. Western integrated coal gasification demonstration project.

                    Subtitle B--Federal Coal Leases

Sec. 411. Repeal of the 160-acre limitation for coal leases.
Sec. 412. Mining plans.
Sec. 413. Payment of advance royalties under coal leases.
Sec. 414. Elimination of deadline for submission of coal lease 
              operation and reclamation plan.
Sec. 415. Application of amendments.

                         TITLE V--INDIAN ENERGY

Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Four Corners transmission line project and electrification.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.

                  Subtitle B--General Nuclear Matters

Sec. 621. Medical isotope production.
Sec. 622. Safe disposal of greater-than-class C radioactive waste.
Sec. 623. Prohibition on nuclear exports to countries that sponsor 
              terrorism.
Sec. 624. Decommissioning pilot program.

           Subtitle C--Next Generation Nuclear Plant Project

Sec. 631. Project establishment.
Sec. 632. Project management.
Sec. 633. Project organization.
Sec. 634. Nuclear regulatory commission.
Sec. 635. Project timelines and authorization of appropriations.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Alternative fuel use by light duty vehicles.
Sec. 703. Incremental cost allocation.
Sec. 704. Alternative compliance and flexibility.
Sec. 705. Report concerning compliance with alternative fueled vehicle 
              purchasing requirements.

                   Subtitle B--Automobile Efficiency

Sec. 711. Authorization of appropriations for implementation and 
              enforcement of fuel economy standards.

                       Subtitle C--Miscellaneous

Sec. 721. Railroad efficiency.
Sec. 722. Conserve by bicycling program.
Sec. 723. Reduction of engine idling of heavy-duty vehicles.
Sec. 724. Biodiesel engine testing project.

               Subtitle D--Federal and State Procurement

Sec. 731. Definitions.
Sec. 732. Federal and State procurement of fuel cell vehicles and 
              hydrogen energy systems.
Sec. 733. Federal procurement of stationary, portable, and micro fuel 
              cells.

                          TITLE VIII--HYDROGEN

Sec. 801. Hydrogen research, development, and demonstration.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.

                     Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next Generation Lighting Initiative.
Sec. 913. National Building Performance Initiative.
Sec. 914. Secondary electric vehicle battery use program.
Sec. 915. Energy Efficiency Science Initiative.

       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration program.
Sec. 925. Electric transmission and distribution programs.

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                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Concentrating solar power research program.
Sec. 934. Hybrid solar lighting research and development program.
Sec. 935. Miscellaneous projects.

                       Subtitle D--Nuclear Energy

Sec. 941. Nuclear energy.
Sec. 942. Nuclear energy research programs.
Sec. 943. Advanced fuel cycle initiative.
Sec. 944. Nuclear science and engineering support for institutions of 
              higher education.
Sec. 945. Security of nuclear facilities.
Sec. 946. Alternatives to industrial radioactive sources.

                       Subtitle E--Fossil Energy

Sec. 951. Fossil energy.
Sec. 952. Oil and gas research programs.
Sec. 953. Methane hydrate research.
Sec. 954. Research and development for coal mining technologies.
Sec. 955. Coal and related technologies program.
Sec. 956. Carbon dioxide capture research and development.
Sec. 957. Complex well technology testing facility.

                          Subtitle F--Science

Sec. 961. Science.
Sec. 962. Fusion energy sciences program.
Sec. 963. Support for science and energy facilities and infrastructure.
Sec. 964. Catalysis research program.
Sec. 965. Hydrogen.
Sec. 966. Solid state lighting.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and fusion energy materials research program.
Sec. 970. Energy-Water Supply Technologies Program.
Sec. 971. Spallation neutron source.

                 Subtitle G--International Cooperation

Sec. 981. Western Hemisphere energy cooperation.
Sec. 982. Cooperation between United States and Israel.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Sec. 1001. Availability of funds.
Sec. 1002. Cost sharing.
Sec. 1003. Merit review of proposals.
Sec. 1004. External technical review of Departmental programs.
Sec. 1005. Improved technology transfer of energy technologies.
Sec. 1006. Technology Infrastructure Program.
Sec. 1007. Small business advocacy and assistance.
Sec. 1008. Outreach.
Sec. 1009. Relationship to other laws.
Sec. 1010. Improved coordination and management of civilian science and 
              technology programs.
Sec. 1011. Other transactions authority.
Sec. 1012. Prizes for achievement in grand challenges of science and 
              technology.
Sec. 1013. Technical corrections.

                    TITLE XI--PERSONNEL AND TRAINING

Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Energy research fellowships.
Sec. 1103. Educational programs in science and mathematics.
Sec. 1104. Training guidelines for electric energy industry personnel.
Sec. 1105. National Center for Energy Management and Building 
              Technologies.
Sec. 1106. Improved access to energy-related scientific and technical 
              careers.
Sec. 1107. National Power Plant Operations Technology and Education 
              Center.

                         TITLE XII--ELECTRICITY

Sec. 1201. Short title.

                   Subtitle A--Reliability Standards

Sec. 1211. Electric reliability standards.

         Subtitle B--Transmission Infrastructure Modernization

Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced power system technology incentive program.

            Subtitle C--Transmission Operation Improvements

Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Regional Transmission Organizations.
Sec. 1233. Federal utility participation in Transmission Organizations.
Sec. 1234. Standard market design.
Sec. 1235. Native load service obligation.
Sec. 1236. Protection of transmission contracts in the Pacific 
              Northwest.

                  Subtitle D--Transmission Rate Reform

Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.

                    Subtitle E--Amendments to PURPA

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

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

Sec. 1261. Market transparency rules.
Sec. 1262. False Statements.
Sec. 1263. Market manipulation.
Sec. 1264. Enforcement.
Sec. 1265. Refund effective date.
Sec. 1266. Refund authority.
Sec. 1267. Consumer privacy and unfair trade practices.
Sec. 1268. Office of Consumer Advocacy.
Sec. 1269. Authority of court to prohibit persons from serving as 
              officers, directors, and energy traders.
Sec. 1270. Relief for extraordinary violations.

             Subtitle G--Repeal of PUHCA and Merger Reform

Sec. 1271. Short title.
Sec. 1272. Definitions.
Sec. 1273. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1274. Federal access to books and records.
Sec. 1275. State access to books and records.
Sec. 1276. Exemption authority.
Sec. 1277. Affiliate transactions.
Sec. 1278. Applicability.
Sec. 1279. Effect on other regulations.
Sec. 1280. Enforcement.
Sec. 1281. Savings provisions.
Sec. 1282. Implementation.
Sec. 1283. Transfer of resources.
Sec. 1284. Effective date.
Sec. 1285. Service allocation.
Sec. 1286. Authorization of appropriations.
Sec. 1287. Conforming amendments to the Federal Power Act.
Sec. 1288. Merger review reform.

                        Subtitle H--Definitions

Sec. 1291. Definitions.

            Subtitle I--Technical and Conforming Amendments

Sec. 1295. Conforming amendments.

                          TITLE XIII--STUDIES

Sec. 1301. Energy and water saving measures in congressional buildings.
Sec. 1302. Increased hydroelectric generation at existing Federal 
              facilities.
Sec. 1303. Alaska Natural Gas Pipeline.
Sec. 1304. Renewable energy on Federal land.
Sec. 1305. Coal bed methane study.
Sec. 1306. Backup fuel capability study.
Sec. 1307. Indian land rights-of-way.
Sec. 1308. Review of Energy Policy Act of 1992 programs.
Sec. 1309. Study of feasibility and effects of reducing use of fuel for 
              automobiles.
Sec. 1310. Hybrid distributed power systems.
Sec. 1311. Mobility of scientific and technical personnel.
Sec. 1312. National Academy of Sciences report.
Sec. 1313. Report on research and development program evaluation 
              methodologies.
Sec. 1314. Transmission system monitoring study.
Sec. 1315. Interagency review of competition in the wholesale and 
              retail markets for electric energy.
Sec. 1316. Study on the benefits of economic dispatch.
Sec. 1317. Study of rapid electrical grid restoration.
Sec. 1318. Study of distributed generation.
Sec. 1319. Study on inventory of petroleum and natural gas storage.
Sec. 1320. Natural gas supply shortage report.
Sec. 1321. Split-estate Federal oil and gas leasing and development 
              practices.
Sec. 1322. Resolution of Federal resource development conflicts in the 
              Powder River Basin.
Sec. 1323. Study of energy efficiency standards.
Sec. 1324. Telecommuting study.
Sec. 1325. Oil bypass filtration technology.
Sec. 1326. Total integrated thermal systems.
Sec. 1327. University collaboration.
Sec. 1328. Hydrogen participation study.

           TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Sec. 1401. Definitions.
Sec. 1402. Terms and conditions.
Sec. 1403. Eligible projects.
Sec. 1404. Authorization of appropriations.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of Energy.
       (2) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (3) National laboratory.--The term ``National Laboratory'' 
     means any of the following laboratories owned by the 
     Department:
       (A) Ames Laboratory.
       (B) Argonne National Laboratory.
       (C) Brookhaven National Laboratory.

[[Page 12401]]

       (D) Fermi National Accelerator Laboratory.
       (E) Idaho National Laboratory.
       (F) Lawrence Berkeley National Laboratory.
       (G) Lawrence Livermore National Laboratory.
       (H) Los Alamos National Laboratory.
       (I) National Energy Technology Laboratory.
       (J) National Renewable Energy Laboratory.
       (K) Oak Ridge National Laboratory.
       (L) Pacific Northwest National Laboratory.
       (M) Princeton Plasma Physics Laboratory.
       (N) Sandia National Laboratories.
       (O) Stanford Linear Accelerator Center.
       (P) Thomas Jefferson National Accelerator Facility.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (5) Small business concern.--The term ``small business 
     concern'' has the meaning given the term in section 3 of the 
     Small Business Act (15 U.S.C. 632).

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

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

       (a) In General.--Part 3 of title V of the National Energy 
     Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended--
       (1) by redesignating section 551 (42 U.S.C. 8259) as 
     section 553; and
       (2) by inserting after section 550 (42 U.S.C. 8258b) the 
     following:

     ``SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN 
                   CONGRESSIONAL BUILDINGS.

       ``(a) Definitions.--In this section:
       ``(1) Congressional building.--The term `congressional 
     building' means a facility administered by Congress.
       ``(2) Plan.--The term `plan' means an energy conservation 
     and management plan developed under subsection (b)(1).
       ``(b) Plan.--
       ``(1) In general.--The Architect of the Capitol shall 
     develop, update, and implement a cost-effective energy 
     conservation and management plan for congressional buildings 
     to meet the energy performance requirements for Federal 
     buildings established under section 543(a)(1).
       ``(2) Requirements.--The plan shall include--
       ``(A) a description of the life-cycle cost analysis used to 
     determine the cost-effectiveness of proposed energy 
     efficiency projects;
       ``(B) a schedule that ensures that complete energy surveys 
     of all congressional buildings are conducted every 5 years to 
     determine the cost and payback period of energy and water 
     conservation measures;
       ``(C) a strategy for installation of life-cycle cost-
     effective energy and water conservation measures;
       ``(D) the results of a study of the costs and benefits of 
     installation of submetering in congressional buildings; and
       ``(E) information packages and `how-to' guides for each 
     Member and employing authority of Congress that describe 
     simple and cost-effective methods to save energy and taxpayer 
     dollars in congressional buildings.
       ``(3) Submission to congress.--Not later than 180 days 
     after the date of enactment of the Energy Policy Act of 2005, 
     the Architect of the Capitol shall submit to Congress the 
     plan developed under paragraph (1).
       ``(c) Annual Report.--
       ``(1) In general.--The Architect of the Capitol shall 
     annually submit to Congress a report on congressional energy 
     management and conservation programs carried out for 
     congressional buildings under this section.
       ``(2) Requirements.--A report submitted under paragraph (1) 
     shall describe in detail--
       ``(A) energy expenditures and savings estimates for each 
     congressional building;
       ``(B) any energy management and conservation projects for 
     congressional buildings; and
       ``(C) future priorities to ensure compliance with this 
     section.''.
       (b) Conforming Amendment.--The table of contents of the 
     National Energy Conservation Policy Act is amended--
       (1) by redesignating the item relating to section 551 as 
     section 553; and
       (2) by inserting after the item relating to section 550 the 
     following:

``Sec. 551. Energy and water savings measures in congressional 
              buildings.''.
       (c) Repeal.--Section 310 of the Legislative Branch 
     Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
       (d) Energy Infrastructure.--
       (1) In general.--The Architect of the Capitol, building on 
     the Master Plan Study for the Capitol complex completed in 
     July 2000, shall commission a study to evaluate the energy 
     infrastructure of the Capitol complex to determine how to 
     augment the infrastructure to become more energy efficient--
       (A) by using unconventional and renewable energy resources; 
     and
       (B) in a manner that would enable the Capitol complex to 
     have reliable utility service in the event of power 
     fluctuations, shortages, or outages.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Architect of the Capitol to carry 
     out this section $2,000,000 for each of fiscal years 2006 
     through 2010.

     SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.

       (a) Energy Reduction Goals.--Section 543(a) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 
     amended--
       (1) in paragraph (1), by striking ``Subject to'' and all 
     that follows and inserting ``(A) Subject to paragraph (2), 
     each agency shall apply energy conservation measures to, and 
     shall improve the design for the construction of, the Federal 
     buildings of the agency (including each industrial or 
     laboratory facility) so that the energy consumption for each 
     gross square foot of the Federal buildings of the agency for 
     fiscal years 2006 through 2015 is reduced, as compared with 
     the energy consumption for each gross square foot of the 
     Federal buildings of the agency for fiscal year 2004, by the 
     percentage specified in the following table:

  ``Fiscal Year                                    Percentage reduction
    2006............................................................ 2 
    2007............................................................ 4 
    2008............................................................ 6 
    2009............................................................ 8 
    2010............................................................10 
    2011............................................................12 
    2012............................................................14 
    2013............................................................16 
    2014............................................................18 
    2015............................................................20.

       ``(B) The energy reduction goals and baseline established 
     in subparagraph (A) supersede--
       ``(i) all goals and baselines under this paragraph in 
     effect on the day before the date of enactment of this 
     subparagraph; and
       ``(ii) any related reporting requirements.''; and
       (2) by adding at the end the following:
       ``(3) Not later than December 31, 2013, the Secretary 
     shall--
       ``(A) review the results of the implementation of the 
     energy performance requirement established under paragraph 
     (1); and
       ``(B) submit to Congress recommendations concerning energy 
     performance requirements for each of fiscal years 2015 
     through 2024.''.
       (b) Exclusions; Review by Secretary; Criteria.--Section 
     543(c) of the National Energy Conservation Policy Act (42 
     U.S.C. 8253(c)) is amended--
       (1) in paragraph (1), by striking ``An agency may exclude'' 
     and all that follows and inserting ``(A) An agency may 
     exclude, from the energy performance requirement for a fiscal 
     year established under subsection (a) and the energy 
     management requirement established under subsection (b), any 
     Federal building or collection of Federal buildings, if the 
     head of the agency finds that--
       ``(i) compliance with those requirements would be 
     impracticable;
       ``(ii) the agency has completed and submitted all federally 
     required energy management reports;
       ``(iii) the agency has achieved compliance with the energy 
     efficiency requirements of this Act, the Energy Policy Act of 
     1992 (42 U.S.C. 13201 et seq.), Executive orders, and other 
     Federal law; and
       ``(iv) the agency has implemented all practicable, life-
     cycle cost-effective projects with respect to the Federal 
     building or collection of Federal buildings to be excluded.
       ``(B) A finding of impracticability under subparagraph 
     (A)(i) shall be based on--
       ``(i) the energy intensiveness of activities carried out in 
     the Federal building or collection of Federal buildings; or
       ``(ii) the fact that the Federal building or collection of 
     Federal buildings is used in the performance of a national 
     security function.'';
       (2) in paragraph (2)--
       (A) in the second sentence--
       (i) by striking ``impracticability standards'' and 
     inserting ``standards for exclusion''; and
       (ii) by striking ``a finding of impracticability'' and 
     inserting ``the exclusion''; and
       (B) in the third sentence, by striking ``energy consumption 
     requirements'' and inserting ``requirements of subsections 
     (a) and (b)(1)''; and
       (3) by adding at the end the following:
       ``(3) Not later than 180 days after the date of enactment 
     of this paragraph, the Secretary shall issue guidelines that 
     establish criteria for exclusions under paragraph (1).''.
       (c) Retention of Energy and Water Savings.--Section 546 of 
     the National Energy Conservation Policy Act (42 U.S.C. 8256) 
     is amended--
       (1) in subsection (d)(2)(G), by inserting ``of the Energy 
     Policy Act of 1992 (42 U.S.C. 8262e)'' after ``159''; and
       (2) by adding at the end the following:
       ``(e) Retention of Energy and Water Savings.--(1) An agency 
     may retain any funds appropriated to the agency for energy 
     expenditures, water expenditures, or wastewater treatment 
     expenditures, at buildings subject to the requirements of 
     subsections (a) and (b) of section 543, that are not expended 
     because of energy savings or water savings.
       ``(2) Except as otherwise provided by law, funds described 
     in paragraph (1) may be used by an agency only for energy 
     efficiency, water conservation, or unconventional and 
     renewable energy resources projects.''.

[[Page 12402]]

       (d) Reports.--Section 548(b) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
       (1) in the subsection heading, by inserting ``the President 
     and'' before ``Congress''; and
       (2) by inserting ``President and'' before ``Congress''.
       (e) Conforming Amendment.--Section 550(d) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is 
     amended in the second sentence by striking ``the 20 percent 
     reduction goal established under section 543(a) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8253(a)).'' and inserting ``each of the energy reduction 
     goals established under section 543(a).''.

     SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is amended by adding at the end the 
     following:
       ``(e) Metering of Energy Use.--(1)(A) Not later than 
     October 1, 2012, in accordance with guidelines established by 
     the Secretary under paragraph (2), each Federal building 
     shall, for the purposes of efficient use of energy and 
     reduction in the cost of electricity used in the building, be 
     metered or submetered.
       ``(B) Each agency shall use, to the maximum extent 
     practicable, advanced meters or advanced metering devices 
     that provide data at least daily on, and that measure at 
     least hourly, consumption of electricity in the Federal 
     buildings of the agency.
       ``(C) The data shall be--
       ``(i) incorporated into Federal energy tracking systems; 
     and
       ``(ii) made available to Federal facility energy managers.
       ``(2)(A) Not later than 180 days after the date of 
     enactment of this subsection, the Secretary (in consultation 
     with the Secretary of Defense, the Administrator of General 
     Services, representatives from the metering industry, utility 
     industry, energy services industry, energy efficiency 
     industry, energy efficiency advocacy organizations, national 
     laboratories, and universities, and Federal facility energy 
     managers) shall establish guidelines for agencies to carry 
     out paragraph (1).
       ``(B) The guidelines shall--
       ``(i) take into consideration--
       ``(I) the cost of metering and submetering and the reduced 
     cost of operation and maintenance expected to result from 
     metering and submetering;
       ``(II) the extent to which metering and submetering are 
     expected to result in increased potential for energy 
     management, increased potential for energy savings and energy 
     efficiency improvement, and cost and energy savings because 
     of utility contract aggregation; and
       ``(III) the measurement and verification protocols of the 
     Department of Energy;
       ``(ii) include recommendations concerning the amount of 
     funds and the number of trained personnel necessary to gather 
     and use the metering information to track and reduce energy 
     use;
       ``(iii) establish priorities for types and locations of 
     buildings to be metered and submetered based on cost-
     effectiveness and a schedule of 1 or more dates, not later 
     than 1 year after the date of issuance of the guidelines, on 
     which paragraph (1) takes effect; and
       ``(iv) establish exclusions from the requirements of 
     paragraph (1) based on the de minimis quantity of energy use 
     of a Federal building, industrial process, or structure.
       ``(3) Not later than 180 days after the date on which 
     guidelines are established under paragraph (2), in a report 
     submitted by an agency under section 548(a), the agency shall 
     submit to the Secretary a plan describing the manner in which 
     the agency will implement paragraph (1), including--
       ``(A) the manner in which the agency will designate 
     personnel primarily responsible for carrying out that 
     implementation; and
       ``(B) demonstration by the agency, complete with 
     documentation, of any finding that the use of advanced meters 
     or advanced metering devices described in paragraph (1) is 
     not practicable.''.

     SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

       (a) Requirements.--Part 3 of title V of the National Energy 
     Conservation Policy Act (42 U.S.C. 8251 et seq.) (as amended 
     by section 101(a)) is amended by inserting after section 551 
     the following:

     ``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

       ``(a) Definitions.--In this section:
       ``(1) The term `Energy Star product' means a product that 
     is rated for energy efficiency under an Energy Star program.
       ``(2) The term `Energy Star program' means the program 
     established by section 324A of the Energy Policy and 
     Conservation Act.
       ``(3) The term `executive agency' has the meaning given the 
     term in section 4 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403).
       ``(4) The term `FEMP designated product' means a product 
     that is designated under the Federal Energy Management 
     Program of the Department of Energy as being among the 
     highest 25 percent of equivalent products for energy 
     efficiency.
       ``(b) Procurement of Energy Efficient Products.--(1) Except 
     as provided in paragraph (2), to meet the requirements of an 
     executive agency for an energy consuming product, the head of 
     the executive agency shall procure--
       ``(A) an Energy Star product; or
       ``(B) a FEMP designated product.
       ``(2) The head of an executive agency shall not be required 
     to comply with paragraph (1) if the head of the executive 
     agency specifies in writing that--
       ``(A) taking into account energy cost savings, an Energy 
     Star product or FEMP designated product is not cost-effective 
     over the life of the product; or
       ``(B) no Energy Star product or FEMP designated product is 
     reasonably available that meets the functional requirements 
     of the executive agency.
       ``(3) The head of an executive agency shall incorporate 
     criteria for energy efficiency that are consistent with the 
     criteria used for rating Energy Star products and FEMP 
     designated products into--
       ``(A) the specifications for any procurements involving 
     energy consuming products and systems, including--
       ``(i) guide specifications;
       ``(ii) project specifications; and
       ``(iii) construction, renovation, and services contracts 
     that include the provision of energy consuming products and 
     systems; and
       ``(B) the factors for the evaluation of offers received for 
     the procurement.
       ``(c) Listing of Energy Efficient Products in Federal 
     Catalogs.--(1) Any inventory or listing of products by the 
     General Services Administration or the Defense Logistics 
     Agency shall clearly identify and prominently display Energy 
     Star products and FEMP designated products.
       ``(2)(A) Except as provided in subparagraph (B), the 
     General Services Administration or the Defense Logistics 
     Agency shall supply only Energy Star products or FEMP 
     designated products for all product categories covered by the 
     Energy Star program or the Federal Energy Management Program.
       ``(B) Subparagraph (A) shall not apply if an agency 
     ordering a product specifies in writing that--
       ``(i) taking into account energy cost savings, no Energy 
     Star product or FEMP designated product is cost-effective for 
     the intended application over the life of the product; or
       ``(ii) no Energy Star product or FEMP designated product is 
     available to meet the functional requirements of the ordering 
     agency.
       ``(d) Specific Products.--(1) In the case of an electric 
     motor of 1 to 500 horsepower, an executive agency shall 
     select only a premium efficient motor that meets the standard 
     established by the Secretary under paragraph (2).
       ``(2) Not later than 120 days after the date of enactment 
     of this subsection and after considering the recommendations 
     of associated electric motor manufacturers and energy 
     efficiency groups, the Secretary shall establish a standard 
     for premium efficient motors.
       ``(3)(A) Each Federal agency is encouraged to take actions 
     (such as appropriate cleaning and maintenance) to maximize 
     the efficiency of air conditioning and refrigeration 
     equipment, including the use of a system treatment or 
     additive that--
       ``(i) would reduce the electricity consumed by air 
     conditioning and refrigeration equipment; and
       ``(ii) meets the criteria specified in subparagraph (B).
       ``(B) A system treatment or additive referred to in 
     subparagraph (A) shall be--
       ``(i) determined by the Secretary to be effective in 
     increasing the efficiency of air conditioning and 
     refrigeration equipment without having an adverse impact on--
       ``(I) air conditioning and refrigeration performance 
     (including cooling capacity); or
       ``(II) the useful life of the equipment;
       ``(ii) determined by the Administrator of the Environmental 
     Protection Agency to be environmentally safe; and
       ``(iii) shown, in tests conducted by the National Institute 
     of Standards and Technology, in accordance with Department of 
     Energy test procedures, to increase the seasonal energy 
     efficiency ratio (SEER) or energy efficiency ratio (EER) 
     without having any adverse impact on the system, system 
     components, the refrigerant or lubricant, or other materials 
     in the system.
       ``(4) The results of the tests described in paragraph 
     (3)(B)(iii) shall be published in the Federal Register for 
     public review and comment.
       ``(5) For purposes of this subsection, a hardware device or 
     primary refrigerant shall not be considered an additive.
       ``(e) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall issue 
     guidelines to carry out this section.''.
       (b) Conforming Amendment.--The table of contents of the 
     National Energy Conservation Policy Act (as amended by 
     section 101(b)) is amended by inserting after the item 
     relating to section 551 the following:

``Sec. 552. Federal procurement of energy efficient products.''.

     SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Permanent Extension.--Section 801(c) of the National 
     Energy Conservation Policy

[[Page 12403]]

     Act (42 U.S.C. 8287(c)) is amended by striking ``2006'' and 
     inserting ``2016''.
       (b) Extension of Authority.--Any energy savings performance 
     contract entered into under section 801 of the National 
     Energy Conservation Policy Act (42 U.S.C. 8287) after October 
     1, 2003, and before the date of enactment of this Act, shall 
     be considered to have been entered into under that section.

     SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY 
                   INTENSITY.

       (a) Definition of Energy Intensity.--In this section, the 
     term ``energy intensity'' means the primary energy consumed 
     for each unit of physical output in an industrial process.
       (b) Voluntary Agreements.--The Secretary may enter into 
     voluntary agreements with 1 or more persons in industrial 
     sectors that consume significant quantities of primary energy 
     for each unit of physical output to reduce the energy 
     intensity of the production activities of the persons.
       (c) Goal.--Voluntary agreements under this section shall 
     have as a goal the reduction of energy intensity by not less 
     than 2.5 percent each year during the period of calendar 
     years 2007 through 2016.
       (d) Recognition.--The Secretary, in cooperation with other 
     appropriate Federal agencies, shall develop mechanisms to 
     recognize and publicize the achievements of participants in 
     voluntary agreements under this section.
       (e) Technical Assistance.--A person that enters into an 
     agreement under this section and continues to make a good 
     faith effort to achieve the energy efficiency goals specified 
     in the agreement shall be eligible to receive from the 
     Secretary a grant or technical assistance, as appropriate, to 
     assist in the achievement of those goals.
       (f) Report.--Not later than each of June 30, 2012, and June 
     30, 2017, the Secretary shall submit to Congress a report 
     that--
       (1) evaluates the success of the voluntary agreements under 
     this section; and
       (2) provides independent verification of a sample of the 
     energy savings estimates provided by participating firms.

     SEC. 107. FEDERAL BUILDING PERFORMANCE STANDARDS.

       Section 305(a) of the Energy Conservation and Production 
     Act (42 U.S.C. 6834(a)) is amended--
       (1) in paragraph (2)(A), by striking ``CABO Model Energy 
     Code, 1992 (in the case of residential buildings) or ASHRAE 
     Standard 90.1-1989'' and inserting ``the 2004 International 
     Energy Conservation Code (in the case of residential 
     buildings) or ASHRAE Standard 90.1-2004''; and
       (2) by adding at the end the following:
       ``(3)(A) Not later than 1 year after the date of enactment 
     of this paragraph, the Secretary shall establish, by rule, 
     revised Federal building energy efficiency performance 
     standards that require that--
       ``(i) if life-cycle cost-effective for new Federal 
     buildings--
       ``(I) the buildings be designed to achieve energy 
     consumption levels that are at least 30 percent below the 
     levels established in the version of the ASHRAE Standard or 
     the International Energy Conservation Code, as appropriate, 
     that is in effect as of the date of enactment of this 
     paragraph; and
       ``(II) sustainable design principles are applied to the 
     siting, design, and construction of all new and replacement 
     buildings; and
       ``(ii) if water is used to achieve energy efficiency, water 
     conservation technologies shall be applied to the extent that 
     the technologies are life-cycle cost-effective.
       ``(B) Not later than 1 year after the date of approval of 
     each subsequent revision of the ASHRAE Standard or the 
     International Energy Conservation Code, as appropriate, the 
     Secretary shall determine, based on the cost-effectiveness of 
     the requirements under the amendment, whether the revised 
     standards established under this paragraph should be updated 
     to reflect the amendment.
       ``(C) In the budget request of the Federal agency for each 
     fiscal year and each report submitted by the Federal agency 
     under section 548(a) of the National Energy Conservation 
     Policy Act (42 U.S.C. 8258(a)), the head of each Federal 
     agency shall include--
       ``(i) a list of all new Federal buildings owned, operated, 
     or controlled by the Federal agency; and
       ``(ii) a statement specifying whether the Federal buildings 
     meet or exceed the revised standards established under this 
     paragraph.''.

     SEC. 108. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       (a) Amendment.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) is amended by adding at the end the 
     following:


  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete

       ``Sec. 6005. (a) Definitions.--In this section:
       ``(1) Agency head.--The term `agency head' means--
       ``(A) the Secretary of Transportation; and
       ``(B) the head of any other Federal agency that, on a 
     regular basis, procures, or provides Federal funds to pay or 
     assist in paying the cost of procuring, material for cement 
     or concrete projects.
       ``(2) Cement or concrete project.--The term `cement or 
     concrete project' means a project for the construction or 
     maintenance of a highway or other transportation facility or 
     a Federal, State, or local government building or other 
     public facility that--
       ``(A) involves the procurement of cement or concrete; and
       ``(B) is carried out, in whole or in part, using Federal 
     funds.
       ``(3) Recovered mineral component.--The term `recovered 
     mineral component' means--
       ``(A) ground granulated blast furnace slag;
       ``(B) coal combustion fly ash; and
       ``(C) any other waste material or byproduct recovered or 
     diverted from solid waste that the Administrator, in 
     consultation with an agency head, determines should be 
     treated as recovered mineral component under this section for 
     use in cement or concrete projects paid for, in whole or in 
     part, by the agency head.
       ``(b) Implementation of Requirements.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator and each agency 
     head shall take such actions as are necessary to implement 
     fully all procurement requirements and incentives in effect 
     as of the date of enactment of this section (including 
     guidelines under section 6002) that provide for the use of 
     cement and concrete incorporating recovered mineral component 
     in cement or concrete projects.
       ``(2) Priority.--In carrying out paragraph (1), an agency 
     head shall give priority to achieving greater use of 
     recovered mineral component in cement or concrete projects 
     for which recovered mineral components historically have not 
     been used or have been used only minimally.
       ``(3) Federal procurement requirements.--The Administrator 
     and each agency head shall carry out this subsection in 
     accordance with section 6002.
       ``(c) Full Implementation Study.--
       ``(1) In general.--The Administrator, in cooperation with 
     the Secretary of Transportation and the Secretary of Energy, 
     shall conduct a study to determine the extent to which 
     procurement requirements, when fully implemented in 
     accordance with subsection (b), may realize energy savings 
     and environmental benefits attainable with substitution of 
     recovered mineral component in cement used in cement or 
     concrete projects.
       ``(2) Matters to be addressed.--The study shall--
       ``(A) quantify--
       ``(i) the extent to which recovered mineral components are 
     being substituted for Portland cement, particularly as a 
     result of procurement requirements; and
       ``(ii) the energy savings and environmental benefits 
     associated with the substitution;
       ``(B) identify all barriers in procurement requirements to 
     greater realization of energy savings and environmental 
     benefits, including barriers resulting from exceptions from 
     the law; and
       ``(C)(i) identify potential mechanisms to achieve greater 
     substitution of recovered mineral component in types of 
     cement or concrete projects for which recovered mineral 
     components historically have not been used or have been used 
     only minimally;
       ``(ii) evaluate the feasibility of establishing guidelines 
     or standards for optimized substitution rates of recovered 
     mineral component in those cement or concrete projects; and
       ``(iii) identify any potential environmental or economic 
     effects that may result from greater substitution of 
     recovered mineral component in those cement or concrete 
     projects.
       ``(3) Report.--Not later than 30 months after the date of 
     enactment of this section, the Administrator shall submit to 
     Congress a report on the study.
       ``(d) Additional Procurement Requirements.--Unless the 
     study conducted under subsection (c) identifies any effects 
     or other problems described in subsection (c)(2)(C)(iii) that 
     warrant further review or delay, the Administrator and each 
     agency head shall, not later than 1 year after the date on 
     which the report under subsection (c)(3) is submitted, take 
     additional actions under this Act to establish procurement 
     requirements and incentives that provide for the use of 
     cement and concrete with increased substitution of recovered 
     mineral component in the construction and maintenance of 
     cement or concrete projects--
       ``(1) to realize more fully the energy savings and 
     environmental benefits associated with increased 
     substitution; and
       ``(2) to eliminate barriers identified under subsection 
     (c)(2)(B).
       ``(e) Effect of Section.--Nothing in this section affects 
     the requirements of section 6002 (including the guidelines 
     and specifications for implementing those requirements).''.
       (b) Conforming Amendment.--The table of contents of the 
     Solid Waste Disposal Act is amended by adding after the item 
     relating to section 6004 the following:

``Sec. 6005. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.''.

[[Page 12404]]



            Subtitle B--Energy Assistance and State Programs

     SEC. 121. WEATHERIZATION ASSISTANCE.

       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 ``$325,000,000 for fiscal year 2006, $400,000,000 
     for fiscal year 2007, and $500,000,000 for fiscal year 
     2008''.

     SEC. 122. 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 adding at the end the following:
       ``(g)(1) 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 the State 
     submitted under subsection (b) or (e).
       ``(2) A review conducted under paragraph (1) should--
       ``(A) consider the energy conservation plans of other 
     States within the region; and
       ``(B) identify opportunities and actions carried out in 
     pursuit of common energy conservation goals.''.
       (b) State Energy Efficiency Goals.--Section 364 of the 
     Energy Policy and Conservation Act (42 U.S.C. 6324) is 
     amended to read as follows:


                    ``state energy efficiency goals

       ``Sec. 364. Each State energy conservation plan with 
     respect to which assistance is made available under this part 
     on or after the date of enactment of the Energy Policy Act of 
     2005--
       ``(1) shall contain a goal, consisting of an improvement of 
     25 percent or more in the efficiency of use of energy in the 
     State concerned in calendar year 2012 as compared to calendar 
     year 1992; and
       ``(2) may contain interim goals.''.
       (c) Authorization of Appropriations.--Section 365(f) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
     amended by striking ``for fiscal years 1999 through 2003 such 
     sums as may be necessary'' and inserting ``$100,000,000 for 
     each of fiscal years 2006 and 2007 and $125,000,000 for 
     fiscal year 2008''.

     SEC. 123. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

       (a) Definitions.--In this section:
       (1) Eligible state.--The term ``eligible State'' means a 
     State that meets the requirements of subsection (b).
       (2) Energy star program.--The term ``Energy Star program'' 
     means the program established by section 324A of the Energy 
     Policy and Conservation Act (as added by section 131(a)).
       (3) Residential energy star product.--The term 
     ``residential Energy Star product'' means a product for a 
     residence that is rated for energy efficiency under the 
     Energy Star program.
       (4) State energy office.--The term ``State energy office'' 
     means the State agency responsible for developing State 
     energy conservation plans under section 362 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6322).
       (5) State program.--The term ``State program'' means a 
     State energy efficient appliance rebate program described in 
     subsection (b)(1).
       (b) Eligible States.--A State shall be eligible to receive 
     an allocation under subsection (c) if the State--
       (1) establishes (or has established) a State energy 
     efficient appliance rebate program to provide rebates to 
     residential consumers for the purchase of residential Energy 
     Star products to replace used appliances of the same type;
       (2) submits an application for the allocation at such time, 
     in such form, and containing such information as the 
     Secretary may require; and
       (3) provides assurances satisfactory to the Secretary that 
     the State will use the allocation to supplement, but not 
     supplant, funds made available to carry out the State 
     program.
       (c) Amount of Allocations.--
       (1) In general.--Subject to paragraph (2), for each fiscal 
     year, the Secretary shall allocate to the State energy office 
     of each eligible State to carry out subsection (d) an amount 
     equal to the product obtained by multiplying--
       (A) the amount made available under subsection (f) for the 
     fiscal year; and
       (B) by the ratio that--
       (i) the population of the State in the most recent calendar 
     year for which data are available; bears to
       (ii) the total population of all eligible States in that 
     calendar year.
       (2) Minimum allocations.--For each fiscal year, the amounts 
     allocated under this subsection shall be adjusted 
     proportionately so that no eligible State is allocated a sum 
     that is less than such minimum amount as shall be determined 
     by the Secretary.
       (d) Use of Allocated Funds.--The allocation to a State 
     energy office under subsection (c) may be used to pay not 
     more than 50 percent of the cost of establishing and carrying 
     out a State program.
       (e) Issuance of Rebates.--
       (1) In general.--A rebate may be provided to a residential 
     consumer that meets the requirements of the State program.
       (2) Amount.--The amount of a rebate shall be determined by 
     the State energy office, taking into consideration--
       (A) the amount of the allocation to the State energy office 
     under subsection (c);
       (B) the amount of any Federal or State tax incentive 
     available for the purchase of the residential Energy Star 
     product; and
       (C) the difference between--
       (i) the cost of the residential Energy Star product; and
       (ii) the cost of an appliance that is not a residential 
     Energy Star product, but is of the same type as, and is the 
     nearest capacity, performance, and other relevant 
     characteristics (as determined by the State energy office) 
     to, the residential Energy Star product.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $50,000,000 for each of fiscal years 2006 through 2010.

     SEC. 124. ENERGY EFFICIENT PUBLIC BUILDINGS.

       (a) Grants.--The Secretary may make grants to the State 
     agency responsible for developing State energy conservation 
     plans under section 362 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322), or a State agency designated by the 
     Governor of the State, to assist units of local government in 
     the State in improving the energy efficiency of public 
     buildings and facilities through--
       (1) construction of new energy efficient public buildings 
     that use at least 30 percent less energy than a comparable 
     public building constructed in compliance with standards 
     prescribed in--
       (A) the most recent version of the International Energy 
     Conservation Code; or
       (B) a similar State code intended to achieve substantially 
     equivalent efficiency levels; or
       (2) renovation of existing public buildings to achieve 
     reductions in energy use of at least 30 percent as compared 
     to the baseline energy use in the buildings before 
     renovation, assuming a 3-year, weather-normalized average for 
     calculating the baseline.
       (b) Administration.--State energy offices receiving grants 
     under this section shall--
       (1) maintain any records and evidence of compliance that 
     the Secretary may require; and
       (2) to encourage planning, financing, and design of energy 
     efficient public buildings by units of local government--
       (A) develop and distribute information and materials; and
       (B) conduct programs to provide technical services and 
     assistance.
       (c) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     the Secretary to carry out this section $30,000,000 for each 
     of fiscal years 2006 through 2010.
       (2) Administrative expenses.--Not more than 10 percent of 
     amounts made available under paragraph (1) shall be used for 
     administrative expenses.

     SEC. 125. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT 
                   PROGRAM.

       (a) Definition of Indian Tribe.--In this section, the term 
     ``Indian tribe'' has the meaning given the term in section 4 
     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b).
       (b) Grants.--
       (1) In general.--The Secretary may provide grants, on a 
     competitive basis, to units of local government, private or 
     nonprofit community development organizations, and economic 
     development entities of Indian tribes--
       (A) to improve energy efficiency;
       (B) to identify and develop alternative, renewable, and 
     distributed energy supplies; and
       (C) to increase energy conservation in low-income rural and 
     urban communities.
       (2) Eligible activities.--The following activities are 
     eligible for grants under paragraph (1):
       (A) Investments that develop alternative, renewable, and 
     distributed energy supplies.
       (B) Energy efficiency projects and energy conservation 
     programs.
       (C) Studies and other activities that improve energy 
     efficiency in low-income rural and urban communities.
       (D) Planning and development assistance for increasing the 
     energy efficiency of buildings and facilities.
       (E) Technical and financial assistance to units of local 
     government and private entities to develop new renewable and 
     distributed sources of power or combined heat and power 
     generation.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $20,000,000 for each of fiscal years 2006 through 2010.

     SEC. 126. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.

       (a) In General.--The Secretary, in cooperation with the 
     States, shall establish a cooperative program for research, 
     development, demonstration, and deployment of technologies in 
     which there is a common Federal and State energy efficiency, 
     renewable energy, and fossil energy interest, to be known as 
     the ``State Technologies Advancement Collaborative'' 
     (referred to in this section as the ``Collaborative'').
       (b) Duties.--The Collaborative shall--
       (1) leverage Federal and State funding through cost-shared 
     activity;
       (2) reduce redundancies in Federal and State funding; and

[[Page 12405]]

       (3) create multistate projects to be awarded through a 
     competitive process.
       (c) Administration.--The Collaborative shall be 
     administered through an agreement between the Department and 
     appropriate State-based organizations.
       (d) Funding Sources.--Funding for the Collaborative may be 
     provided from--
       (1) amounts specifically appropriated for the 
     Collaborative; or
       (2) amounts that may be allocated from other appropriations 
     without changing the purpose for which the amounts are 
     appropriated.
       (e) Authorization of Appropriations.--There are authorized 
     to carry out this section such sums as are necessary for each 
     of fiscal years 2006 through 2010.

     SEC. 127. MODEL BUILDING ENERGY CODE COMPLIANCE GRANT 
                   PROGRAM.

       (a) In General.--The Secretary shall carry out a program to 
     provide grants to each State that the Secretary determines, 
     with respect to new buildings in the State, achieves at least 
     a 90-percent rate of compliance (based on energy performance) 
     with the most recent model building energy codes.
       (b) Guidelines.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall issue guidelines 
     that standardize criteria by which a State that seeks to 
     receive a grant under this section may--
       (1) verify compliance with applicable model building energy 
     codes; and
       (2) demonstrate eligibility to receive a grant under this 
     section.
       (c) Local Government Codes.--In the case of a State in 
     which building energy codes are established by local 
     governments--
       (1) a local government may--
       (A) apply for a grant under this section; and
       (B) verify compliance and demonstrate eligibility for the 
     grant under subsection (b); and
       (2) if the Secretary determines that the local government 
     is eligible to receive a grant, the Secretary may provide a 
     grant to the local government.
       (d) Use of Funds.--Funds from a grant provided under this 
     section may be used only to carry out activities relating to 
     the implementation of building energy codes and building 
     practices that exceed efficiency requirements of the most 
     recent model building energy codes.
       (e) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $25,000,000 for each of fiscal years 
     2006 through 2010.
       (2) Set aside.--Of the amounts made available under 
     paragraph (1), the Secretary may use not more than $500,000 
     for each fiscal year--
       (A) to develop compliance guidelines;
       (B) to train State and local officials; and
       (C) to administer grants provided under this section.

                 Subtitle C--Energy Efficient Products

     SEC. 131. ENERGY STAR PROGRAM.

       (a) In General.--The Energy Policy and Conservation Act is 
     amended by inserting after section 324 (42 U.S.C. 6294) the 
     following:


                         ``energy star program

       ``Sec. 324A. (a) In General.--There is established within 
     the Department of Energy and the Environmental Protection 
     Agency a voluntary program to identify and promote energy-
     efficient products and buildings in order to reduce energy 
     consumption, improve energy security, and reduce pollution 
     through voluntary labeling of, or other forms of 
     communication about, products and buildings that meet the 
     highest energy conservation standards.
       ``(b) Division of Responsibilities.--Responsibilities under 
     the program shall be divided between the Department of Energy 
     and the Environmental Protection Agency in accordance with 
     the terms of applicable agreements between those agencies.
       ``(c) Duties.--The Administrator and the Secretary shall--
       ``(1) promote Energy Star compliant technologies as the 
     preferred technologies in the marketplace for--
       ``(A) achieving energy efficiency; and
       ``(B) reducing pollution;
       ``(2) work to enhance public awareness of the Energy Star 
     label, including by providing special outreach to small 
     businesses;
       ``(3) preserve the integrity of the Energy Star label;
       ``(4) regularly update Energy Star product criteria for 
     product categories;
       ``(5) solicit comments from interested parties prior to 
     establishing or revising an Energy Star product category, 
     specification, or criterion (or prior to effective dates for 
     any such product category, specification, or criterion);
       ``(6) on adoption of a new or revised product category, 
     specification, or criterion, provide reasonable notice to 
     interested parties of any changes (including effective dates) 
     in product categories, specifications, or criteria, along 
     with--
       ``(A) an explanation of the changes; and
       ``(B) as appropriate, responses to comments submitted by 
     interested parties; and
       ``(7) provide appropriate lead time (which shall be 270 
     days, unless the Agency or Department specifies otherwise) 
     prior to the applicable effective date for a new or a 
     significant revision to a product category, specification, or 
     criterion, taking into account the timing requirements of the 
     manufacturing, product marketing, and distribution process 
     for the specific product addressed.
       ``(d) Deadlines.--The Secretary shall establish new 
     qualifying levels--
       ``(1) not later than January 1, 2006, for clothes washers 
     and dishwashers, effective beginning January 1, 2007; and
       ``(2) not later than January 1, 2008, for clothes washers, 
     effective beginning January 1, 2010.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) 
     is amended by inserting after the item relating to section 
     324 the following:

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

     SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

       Section 337 of the Energy Policy and Conservation Act (42 
     U.S.C. 6307) is amended by adding at the end the following:
       ``(c) HVAC Maintenance.--(1) To ensure that installed air 
     conditioning and heating systems operate at maximum rated 
     efficiency levels, the Secretary shall, not later than 180 
     days after the date of enactment of this subsection, carry 
     out a program to educate homeowners and small business owners 
     concerning the energy savings from properly conducted 
     maintenance of air conditioning, heating, and ventilating 
     systems.
       ``(2) The Secretary shall carry out the program under 
     paragraph (1), on a cost-shared basis, in cooperation with 
     the Administrator of the Environmental Protection Agency and 
     any other entities that the Secretary determines to be 
     appropriate, including industry trade associations, industry 
     members, and energy efficiency organizations.
       ``(d) Small Business Education and Assistance.--(1) The 
     Administrator of the Small Business Administration, in 
     consultation with the Secretary and the Administrator of the 
     Environmental Protection Agency, shall develop and coordinate 
     a Government-wide program, building on the Energy Star for 
     Small Business Program, to assist small businesses in--
       ``(A) becoming more energy efficient;
       ``(B) understanding the cost savings from improved energy 
     efficiency; and
       ``(C) identifying financing options for energy efficiency 
     upgrades.
       ``(2) The Secretary and the Administrator of the Small 
     Business Administration shall make program information 
     available directly to small businesses and through other 
     Federal agencies, including the Federal Emergency Management 
     Agency and the Department of Agriculture.''.

     SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall convene an 
     organizational conference for the purpose of establishing an 
     ongoing, self-sustaining national public energy education 
     program.
       (b) Participants.--The Secretary shall invite to 
     participate in the conference individuals and entities 
     representing all aspects of energy production and 
     distribution, including--
       (1) industrial firms;
       (2) professional societies;
       (3) educational organizations;
       (4) trade associations; and
       (5) governmental agencies.
       (c) Purpose, Scope, and Structure.--
       (1) Purpose.--The purpose of the conference shall be to 
     establish an ongoing, self-sustaining national public energy 
     education program to examine and recognize interrelationships 
     between energy sources in all forms, including--
       (A) conservation and energy efficiency;
       (B) the role of energy use in the economy; and
       (C) the impact of energy use on the environment.
       (2) Scope and structure.--Taking into consideration the 
     purpose described in paragraph (1), the participants in the 
     conference invited under subsection (b) shall design the 
     scope and structure of the program described in subsection 
     (a).
       (d) Technical Assistance.--The Secretary shall provide 
     technical assistance and other guidance necessary to carry 
     out the program described in subsection (a).
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.

       (a) In General.--The Secretary shall carry out a 
     comprehensive national program, including advertising and 
     media awareness, to inform consumers about--
       (1) the need to reduce energy consumption during the 4-year 
     period beginning on the date of enactment of this Act;
       (2) the benefits to consumers of reducing consumption of 
     electricity, natural gas, and petroleum, particularly during 
     peak use periods;
       (3) the importance of low energy costs to economic growth 
     and preserving manufacturing jobs in the United States; and
       (4) practical, cost-effective measures that consumers can 
     take to reduce consumption of electricity, natural gas, and 
     gasoline, including--

[[Page 12406]]

       (A) maintaining and repairing heating and cooling ducts and 
     equipment;
       (B) weatherizing homes and buildings;
       (C) purchasing energy efficient products; and
       (D) proper tire maintenance.
       (b) Cooperation.--The program carried out under subsection 
     (a) shall--
       (1) include collaborative efforts with State and local 
     government officials and the private sector; and
       (2) incorporate, to the maximum extent practicable, 
     successful State and local public education programs.
       (c) Report.--Not later than July 1, 2009, the Secretary 
     shall submit to Congress a report describing the 
     effectiveness of the program under this section.
       (d) Termination of Authority.--The program carried out 
     under this section shall terminate on December 31, 2010.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $90,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL 
                   PRODUCTS.

       (a) Definitions.--Section 321 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6291) is amended--
       (1) in paragraph (29)--
       (A) in subparagraph (D)--
       (i) in clause (i), by striking ``C78.1-1978(R1984)'' and 
     inserting ``C78.81-2003 (Data Sheet 7881-ANSI-1010-1)'';
       (ii) in clause (ii), by striking ``C78.1-1978(R1984)'' and 
     inserting ``C78.81-2003 (Data Sheet 7881-ANSI-3007-1)''; and
       (iii) in clause (iii), by striking ``C78.1-1978(R1984)'' 
     and inserting ``C78.81-2003 (Data Sheet 7881-ANSI-1019-1)''; 
     and
       (B) by adding at the end the following:
       ``(M) The term `F34T12 lamp' (also known as a `F40T12/ES 
     lamp') means a nominal 34 watt tubular fluorescent lamp that 
     is 48 inches in length and 1\1/2\ inches in diameter, and 
     conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-
     1006-1).
       ``(N) The term `F96T12/ES lamp' means a nominal 60 watt 
     tubular fluorescent lamp that is 96 inches in length and 1\1/
     2\ inches in diameter, and conforms to ANSI standard C78.81-
     2003 (Data Sheet 7881-ANSI-3006-1).
       ``(O) The term `F96T12HO/ES lamp' means a nominal 95 watt 
     tubular fluorescent lamp that is 96 inches in length and 1\1/
     2\ inches in diameter, and conforms to ANSI standard C78.81-
     2003 (Data Sheet 7881-ANSI-1017-1).
       ``(P) The term `replacement ballast' means a ballast that--
       ``(i) is designed for use to replace an existing ballast in 
     a previously installed luminaire;
       ``(ii) is marked `FOR REPLACEMENT USE ONLY';
       ``(iii) is shipped by the manufacturer in packages 
     containing not more than 10 ballasts; and
       ``(iv) has output leads that when fully extended are a 
     total length that is less than the length of the lamp with 
     which the ballast is intended to be operated.'';
       (2) in paragraph (30)(S)--
       (A) by inserting ``(i)'' before ``The term''; and
       (B) by adding at the end the following:
       ``(ii) The term ``medium base compact fluorescent lamp'' 
     does not include--
       ``(I) any lamp that is--

       ``(aa) specifically designed to be used for special purpose 
     applications; and
       ``(bb) unlikely to be used in general purpose applications, 
     such as the applications described in subparagraph (D); or

       ``(II) any lamp not described in subparagraph (D) that is 
     excluded by the Secretary, by rule, because the lamp is--

       ``(aa) designed for special applications; and
       ``(bb) unlikely to be used in general purpose 
     applications.''; and

       (3) by adding at the end the following:
       ``(32) The term `battery charger' means a device that 
     charges batteries for consumer products, including battery 
     chargers embedded in other consumer products.
       ``(33)(A) The term `commercial prerinse spray valve' means 
     a handheld device designed and marketed for use with 
     commercial dishwashing and ware washing equipment that sprays 
     water on dishes, flatware, and other food service items for 
     the purpose of removing food residue before cleaning the 
     items.
       ``(B) The Secretary may modify the definition of 
     `commercial prerinse spray valve' by rule--
       ``(i) to include products--
       ``(I) that are extensively used in conjunction with 
     commercial dishwashing and ware washing equipment;
       ``(II) the application of standards to which would result 
     in significant energy savings; and
       ``(III) the application of standards to which would meet 
     the criteria specified in section 325(o)(4); and
       ``(ii) to exclude products--
       ``(I) that are used for special food service applications;
       ``(II) that are unlikely to be widely used in conjunction 
     with commercial dishwashing and ware washing equipment; and
       ``(III) the application of standards to which would not 
     result in significant energy savings.
       ``(34) The term `dehumidifier' means a self-contained, 
     electrically operated, and mechanically encased assembly 
     consisting of--
       ``(A) a refrigerated surface (evaporator) that condenses 
     moisture from the atmosphere;
       ``(B) a refrigerating system, including an electric motor;
       ``(C) an air-circulating fan; and
       ``(D) means for collecting or disposing of the condensate.
       ``(35)(A) The term `distribution transformer' means a 
     transformer that--
       ``(i) has an input voltage of 34.5 kilovolts or less;
       ``(ii) has an output voltage of 600 volts or less; and
       ``(iii) is rated for operation at a frequency of 60 Hertz.
       ``(B) The term `distribution transformer' does not 
     include--
       ``(i) a transformer with multiple voltage taps, the highest 
     of which equals at least 20 percent more than the lowest;
       ``(ii) a transformer that is designed to be used in a 
     special purpose application and is unlikely to be used in 
     general purpose applications, such as a drive transformer, 
     rectifier transformer, auto-transformer, Uninterruptible 
     Power System transformer, impedance transformer, regulating 
     transformer, sealed and nonventilating transformer, machine 
     tool transformer, welding transformer, grounding transformer, 
     or testing transformer; or
       ``(iii) any transformer not listed in clause (ii) that is 
     excluded by the Secretary by rule because--
       ``(I) the transformer is designed for a special 
     application;
       ``(II) the transformer is unlikely to be used in general 
     purpose applications; and
       ``(III) the application of standards to the transformer 
     would not result in significant energy savings.
       ``(36) The term `external power supply' means an external 
     power supply circuit that is used to convert household 
     electric current into DC current or lower-voltage AC current 
     to operate a consumer product.
       ``(37) The term `illuminated exit sign' means a sign that--
       ``(A) is designed to be permanently fixed in place to 
     identify an exit; and
       ``(B) consists of an electrically powered integral light 
     source that--
       ``(i) illuminates the legend `EXIT' and any directional 
     indicators; and
       ``(ii) provides contrast between the legend, any 
     directional indicators, and the background.
       ``(38) The term `low-voltage dry-type distribution 
     transformer' means a distribution transformer that--
       ``(A) has an input voltage of 600 volts or less;
       ``(B) is air-cooled; and
       ``(C) does not use oil as a coolant.
       ``(39) The term `pedestrian module' means a light signal 
     used to convey movement information to pedestrians.
       ``(40) The term `refrigerated bottled or canned beverage 
     vending machine' means a commercial refrigerator that cools 
     bottled or canned beverages and dispenses the bottled or 
     canned beverages on payment.
       ``(41) The term `standby mode' means the lowest power 
     consumption mode, as established on an individual product 
     basis by the Secretary, that--
       ``(A) cannot be switched off or influenced by the user; and
       ``(B) may persist for an indefinite time when an appliance 
     is--
       ``(i) connected to the main electricity supply; and
       ``(ii) used in accordance with the instructions of the 
     manufacturer.
       ``(42) The term `torchiere' means a portable electric lamp 
     with a reflector bowl that directs light upward to give 
     indirect illumination.
       ``(43) The term `traffic signal module' means a standard 8-
     inch (200mm) or 12-inch (300mm) traffic signal indication 
     that--
       ``(A) consists of a light source, a lens, and all other 
     parts necessary for operation; and
       ``(B) communicates movement messages to drivers through 
     red, amber, and green colors.
       ``(44) The term `transformer' means a device consisting of 
     2 or more coils of insulated wire that transfers alternating 
     current by electromagnetic induction from 1 coil to another 
     to change the original voltage or current value.
       ``(45)(A) The term `unit heater' means a self-contained 
     fan-type heater designed to be installed within the heated 
     space.
       ``(B) The term `unit heater' does not include a warm air 
     furnace.
       ``(46)(A) The term `high intensity discharge lamp' means an 
     electric-discharge lamp in which--
       ``(i) the light-producing arc is stabilized by bulb wall 
     temperature; and
       ``(ii) the arc tube has a bulb wall loading in excess of 3 
     Watts/cm2.
       ``(B) The term `high intensity discharge lamp' includes 
     mercury vapor, metal halide, and high-pressure sodium lamps 
     described in subparagraph (A).
       ``(47)(A) The term `mercury vapor lamp' means a high 
     intensity discharge lamp in which the major portion of the 
     light is produced by radiation from mercury operating at a 
     partial pressure in excess of 100,000 Pa (approximately 1 
     atm).

[[Page 12407]]

       ``(B) The term `mercury vapor lamp' includes clear, 
     phosphor-coated, and self-ballasted lamps described in 
     subparagraph (A).
       ``(48) The term `mercury vapor lamp ballast' means a device 
     that is designed and marketed to start and operate mercury 
     vapor lamps by providing the necessary voltage and 
     current.''.
       (b) Test Procedures.--Section 323 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6293) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(9) Test procedures for illuminated exit signs shall be 
     based on the test method used under version 2.0 of the Energy 
     Star program of the Environmental Protection Agency for 
     illuminated exit signs.
       ``(10)(A) Test procedures for distribution transformers and 
     low voltage dry-type distribution transformers shall be based 
     on the `Standard Test Method for Measuring the Energy 
     Consumption of Distribution Transformers' prescribed by the 
     National Electrical Manufacturers Association (NEMA TP 2-
     1998).
       ``(B) The Secretary may review and revise the test 
     procedures established under subparagraph (A).
       ``(C) For purposes of section 346(a), the test procedures 
     established under subparagraph (A) shall be considered to be 
     the testing requirements prescribed by the Secretary under 
     section 346(a)(1) for distribution transformers for which the 
     Secretary makes a determination that energy conservation 
     standards would--
       ``(i) be technologically feasible and economically 
     justified; and
       ``(ii) result in significant energy savings.
       ``(11) Test procedures for traffic signal modules and 
     pedestrian modules shall be based on the test method used 
     under the Energy Star program of the Environmental Protection 
     Agency for traffic signal modules, as in effect on the date 
     of enactment of this paragraph.
       ``(12)(A) Test procedures for medium base compact 
     fluorescent lamps shall be based on the test methods for 
     compact fluorescent lamps used under the August 9, 2001, 
     version of the Energy Star program of the Environmental 
     Protection Agency and the Department of Energy.
       ``(B) Except as provided in subparagraph (C), medium base 
     compact fluorescent lamps shall meet all test requirements 
     for regulated parameters of section 325(cc).
       ``(C) Notwithstanding subparagraph (B), if manufacturers 
     document engineering predictions and analysis that support 
     expected attainment of lumen maintenance at 40 percent rated 
     life and lamp lifetime, medium base compact fluorescent lamps 
     may be marketed before completion of the testing of lamp life 
     and lumen maintenance at 40 percent of rated life.
       ``(13) Test procedures for dehumidifiers shall be based on 
     the test criteria used under the Energy Star Program 
     Requirements for Dehumidifiers developed by the Environmental 
     Protection Agency, as in effect on the date of enactment of 
     this paragraph unless revised by the Secretary pursuant to 
     this section.
       ``(14) The test procedure for measuring flow rate for 
     commercial prerinse spray valves shall be based on American 
     Society for Testing and Materials Standard F2324, entitled 
     `Standard Test Method for Pre-Rinse Spray Valves.'
       ``(15) The test procedure for refrigerated bottled or 
     canned beverage vending machines shall be based on American 
     National Standards Institute/American Society of Heating, 
     Refrigerating and Air-Conditioning Engineers Standard 32.1-
     2004, entitled `Methods of Testing for Rating Vending 
     Machines for Bottled, Canned or Other Sealed Beverages'.''; 
     and
       (2) by adding at the end the following:
       ``(f) Additional Consumer and Commercial Products.--(1) Not 
     later than 2 years after the date of enactment of this 
     subsection, the Secretary shall prescribe testing 
     requirements for--
       ``(A) suspended ceiling fans; and
       ``(B) refrigerated bottled or canned beverage vending 
     machines.
       ``(2) To the maximum extent practicable, the testing 
     requirements prescribed under paragraph (1) shall be based on 
     existing test procedures used in industry.''.
       (c) Standard Setting Authority.--Section 325 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6295) is amended--
       (1) in subsection (f)(3), by adding at the end the 
     following:
       ``(D) Notwithstanding any other provision of this Act, if 
     the requirements of subsection (o) are met, the Secretary may 
     consider and prescribe energy conservation standards or 
     energy use standards for electricity used for purposes of 
     circulating air through duct work.'';
       (2) in subsection (g)--
       (A) in paragraph (6)(B), by inserting ``and labeled'' after 
     ``designed''; and
       (B) by adding at the end the following:
       ``(8)(A) Each fluorescent lamp ballast (other than 
     replacement ballasts or ballasts described in subparagraph 
     (C))--
       ``(i)(I) manufactured on or after July 1, 2009;
       ``(II) sold by the manufacturer on or after October 1, 
     2009; or
       ``(III) incorporated into a luminaire by a luminaire 
     manufacturer on or after July 1, 2010; and
       ``(ii) designed--
       ``(I) to operate at nominal input voltages of 120 or 277 
     volts;
       ``(II) to operate with an input current frequency of 60 
     Hertz; and
       ``(III) for use in connection with F34T12 lamps, F96T12/ES 
     lamps, or F96T12HO/ES lamps;

     shall have a power factor of 0.90 or greater and shall have a 
     ballast efficacy factor of not less than the following:


------------------------------------------------------------------------
                                     Ballast       Total       Ballast
   Application for operation of       input       nominal      efficacy
                                     voltage     lamp watts     factor
------------------------------------------------------------------------
One F34T12 lamp..................      120/277           34         2.61
Two F34T12 lamps.................      120/277           68         1.35
Two F96 T12/ES lamps.............      120/277          120         0.77
Two F96 T12HO/ES lamps...........      120/277          190         0.42
------------------------------------------------------------------------

       ``(B) The standards described in subparagraph (A) shall 
     apply to all ballasts covered by subparagraph (A)(ii) that 
     are manufactured on or after July 1, 2010, or sold by the 
     manufacturer on or after October 1, 2010.
       ``(C) The standards described in subparagraphs (A) and (B) 
     do not apply to--
       ``(i) a ballast that is designed for dimming to 50 percent 
     or less of the maximum output of the ballast;
       ``(ii) a ballast that is designed for use with 2 F96T12HO 
     lamps at ambient temperatures of 20 deg.F or less and for use 
     in an outdoor sign; or
       ``(iii) a ballast that has a power factor of less than 0.90 
     and is designed and labeled for use only in residential 
     applications.'';
       (3) in subsection (o), by adding at the end the following:
       ``(5) The Secretary may set more than 1 energy conservation 
     standard for products that serve more than 1 major function 
     by setting 1 energy conservation standard for each major 
     function.'';
       (4) in the first sentence of subsection (p), by striking 
     ``Any'' and inserting the following: ``Except as provided in 
     subsection (u), any''; and
       (5) by adding at the end the following:
       ``(u) Special Rulemaking Procedures.--(1) Notwithstanding 
     any other provision of law, the Secretary may publish a 
     notice of direct final rulemaking based on an energy 
     conservation standard recommended by an interested person, 
     if--
       ``(A) in response to an advance notice of proposed 
     rulemaking under paragraph (p), the interested person 
     (including a representative of a manufacturer of a covered 
     product, a conservation advocate, or consumer) submits a 
     joint comment recommending an energy conservation standard; 
     and
       ``(B) the Secretary determines that the energy conservation 
     standard complies with the substantive provisions of this Act 
     that apply to the type (or class) of covered products to 
     which the rule may apply.
       ``(2) The Secretary shall publish a notice of direct final 
     rulemaking under paragraph (1) with a notice of proposed 
     rulemaking incorporating by reference the regulatory language 
     of the direct final rule that provides for an effective date 
     not earlier than 90 days after the date of publication.
       ``(3) The Secretary may withdraw a direct final rule 
     published under paragraph (2) before the effective date of 
     the rule if an interested person files a significant adverse 
     comment in response to the related notice of proposed 
     rulemaking.
       ``(v) Battery Charger and External Power Supply Electric 
     Energy Consumption.--(1)(A) Not later than 18 months after 
     the date of enactment of this subsection, the Secretary 
     shall, after providing notice and an opportunity for comment, 
     prescribe, by rule, definitions and test procedures for the 
     power use of battery chargers and external power supplies.
       ``(B) In establishing the test procedures under 
     subparagraph (A), the Secretary shall--
       ``(i) consider existing definitions and test procedures 
     used for measuring energy consumption in standby mode and 
     other modes; and
       ``(ii) assess the current and projected future market for 
     battery chargers and external power supplies.
       ``(C) The assessment under subparagraph (B)(ii) shall 
     include--
       ``(i) estimates of the significance of potential energy 
     savings from technical improvements to battery chargers and 
     external power supplies; and
       ``(ii) suggested product classes for energy conservation 
     standards.
       ``(D) Not later than 18 months after the date of enactment 
     of this subsection, the Secretary shall hold a scoping 
     workshop to discuss and receive comments on plans for 
     developing energy conservation standards for energy use for 
     battery chargers and external power supplies.
       ``(E)(i) Not later than 3 years after the date of enactment 
     of this subsection, the Secretary shall issue a final rule 
     that determines whether energy conservation standards shall 
     be issued for battery chargers and

[[Page 12408]]

     external power supplies or classes of battery chargers and 
     external power supplies.
       ``(ii) For each product class, any energy conservation 
     standards issued under clause (i) shall be set at the lowest 
     level of energy use that--
       ``(I) meets the criteria and procedures of subsections (o), 
     (p), (q), (r), (s), and (t); and
       ``(II) would result in significant overall annual energy 
     savings, considering standby mode and other operating modes.
       ``(2) In determining under section 323 whether test 
     procedures and energy conservation standards under this 
     section should be revised with respect to covered products 
     that are major sources of standby mode energy consumption, 
     the Secretary shall consider whether to incorporate standby 
     mode into the test procedures and energy conservation 
     standards, taking into account standby mode power consumption 
     compared to overall product energy consumption.
       ``(3) The Secretary shall not propose an energy 
     conservation standard under this section, unless the 
     Secretary has issued applicable test procedures for each 
     product under section 323.
       ``(4) Any energy conservation standard issued under this 
     subsection shall be applicable to products manufactured or 
     imported beginning on the date that is 3 years after the date 
     of issuance.
       ``(5) The Secretary and the Administrator shall collaborate 
     and develop programs (including programs under section 324A 
     and other voluntary industry agreements or codes of conduct) 
     that are designed to reduce standby mode energy use.
       ``(w) Suspended Ceiling Fans and Refrigerated Beverage 
     Vending Machines.--(1) Not later than 4 years after the date 
     of enactment of this subsection, the Secretary shall 
     prescribe, by rule, energy conservation standards for--
       ``(A) suspended ceiling fans; and
       ``(B) refrigerated bottled or canned beverage vending 
     machines.
       ``(2) In establishing energy conservation standards under 
     this subsection, the Secretary shall use the criteria and 
     procedures prescribed under subsections (o) and (p).
       ``(3) Any energy conservation standard prescribed under 
     this subsection shall apply to products manufactured 3 years 
     after the date of publication of a final rule establishing 
     the energy conservation standard.
       ``(x) Illuminated Exit Signs.--An illuminated exit sign 
     manufactured on or after January 1, 2006, shall meet the 
     version 2.0 Energy Star Program performance requirements for 
     illuminated exit signs prescribed by the Environmental 
     Protection Agency.
       ``(y) Torchieres.--A torchiere manufactured on or after 
     January 1, 2006--
       ``(1) shall consume not more than 190 watts of power; and
       ``(2) shall not be capable of operating with lamps that 
     total more than 190 watts.
       ``(z) Low Voltage Dry-Type Distribution Transformers.--The 
     efficiency of a low voltage dry-type distribution transformer 
     manufactured on or after January 1, 2006, shall be the Class 
     I Efficiency Levels for distribution transformers specified 
     in table 4-2 of the `Guide for Determining Energy Efficiency 
     for Distribution Transformers' published by the National 
     Electrical Manufacturers Association (NEMA TP-1-2002).
       ``(aa) Traffic Signal Modules and Pedestrian Modules.--Any 
     traffic signal module or pedestrian module manufactured on or 
     after January 1, 2006, shall--
       ``(1) meet the performance requirements used under the 
     Energy Star program of the Environmental Protection Agency 
     for traffic signals, as in effect on the date of enactment of 
     this subsection; and
       ``(2) be installed with compatible, electrically connected 
     signal control interface devices and conflict monitoring 
     systems.
       ``(bb) Unit Heaters.--A unit heater manufactured on or 
     after the date that is 3 years after the date of enactment of 
     this subsection shall--
       ``(1) be equipped with an intermittent ignition device; and
       ``(2) have power venting or an automatic flue damper.
       ``(cc) Medium Base Compact Fluorescent Lamps.--(1) A bare 
     lamp and covered lamp (no reflector) medium base compact 
     fluorescent lamp manufactured on or after January 1, 2006, 
     shall meet the following requirements prescribed by the 
     August 9, 2001, version of the Energy Star Program 
     Requirements for Compact Fluorescent Lamps, Energy Star 
     Eligibility Criteria, Energy-Efficiency Specification issued 
     by the Environmental Protection Agency and Department of 
     Energy:
       ``(A) Minimum initial efficacy.
       ``(B) Lumen maintenance at 1000 hours.
       ``(C) Lumen maintenance at 40 percent of rated life.
       ``(D) Rapid cycle stress test.
       ``(E) Lamp life.
       ``(2) The Secretary may, by rule, establish requirements 
     for color quality (CRI), power factor, operating frequency, 
     and maximum allowable start time based on the requirements 
     prescribed by the August 9, 2001, version of the Energy Star 
     Program Requirements for Compact Fluorescent Lamps.
       ``(3) The Secretary may, by rule--
       ``(A) revise the requirements established under paragraph 
     (2); or
       ``(B) establish other requirements, after considering 
     energy savings, cost effectiveness, and consumer 
     satisfaction.
       ``(dd) Dehumidifiers.--(1) Dehumidifiers manufactured on or 
     after October 1, 2007, shall have an Energy Factor that meets 
     or exceeds the following values:

``Product Capacity (pints/day):      Minimum Energy Factor (Liters/kWh)
  25.00 or less...............................................1.00 ....

  25.01 - 35.00...............................................1.20 ....

  35.01 - 54.00...............................................1.30 ....

  54.01 - 74.99...............................................1.50 ....

  75.00 or more...............................................2.25.....

       ``(2)(A) Not later than October 1, 2009, the Secretary 
     shall publish a final rule in accordance with subsections (o) 
     and (p), to determine whether the energy conservation 
     standards established under paragraph (1) should be amended.
       ``(B) The final rule published under subparagraph (A) 
     shall--
       ``(i) contain any amendment by the Secretary; and
       ``(ii) provide that the amendment applies to products 
     manufactured on or after October 1, 2012.
       ``(C) If the Secretary does not publish an amendment that 
     takes effect by October 1, 2012, dehumidifiers manufactured 
     on or after October 1, 2012, shall have an Energy Factor that 
     meets or exceeds the following values:

``Product Capacity (pints/day):      Minimum Energy Factor (Liters/kWh)
  25.00 or less...............................................1.20 ....

  25.01 - 35.00...............................................1.30 ....

  35.01 - 45.00...............................................1.40 ....

  45.01 - 54.00...............................................1.50 ....

  54.01 - 74.99...............................................1.60 ....

  75.00 or more................................................2.5.....

       ``(ee) Commercial Prerinse Spray Valves.--Commercial 
     prerinse spray valves manufactured on or after January 1, 
     2006, shall have a flow rate of not more than 1.6 gallons per 
     minute.
       ``(ff) Mercury vapor lamp ballasts.--Mercury vapor lamp 
     ballasts shall not be manufactured or imported after January 
     1, 2008.
       ``(gg) Application Date.--Section 327 applies--
       ``(1) to products for which energy conservation standards 
     are to be established under subsection (l), (u), (v), or (w) 
     beginning on the date on which a final rule is issued by the 
     Secretary, except that any State or local standard prescribed 
     or enacted for the product before the date on which the final 
     rule is issued shall not be preempted until the energy 
     conservation standard established under subsection (l),(u), 
     (v), or (w) for the product takes effect; and
       ``(2) to products for which energy conservation standards 
     are established under subsections (x) through (ff) on the 
     date of enactment of those subsections, except that any State 
     or local standard prescribed or enacted before the date of 
     enactment of those subsections shall not be preempted until 
     the energy conservation standards established under 
     subsections (x) through (ff) take effect.''.
       (d) General Rule of Preemption.--Section 327(c) of the 
     Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is 
     amended--
       (1) in paragraph (5), by striking ``or'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(7)(A) is a regulation concerning standards for 
     commercial prerinse spray valves adopted by the California 
     Energy Commission before January 1, 2005; or
       ``(B) is an amendment to a regulation described in 
     subparagraph (A) that was developed to align California 
     regulations with changes in American Society for Testing and 
     Materials Standard F2324;
       ``(8)(A) is a regulation concerning standards for 
     pedestrian modules adopted by the California Energy 
     Commission before January 1, 2005; or
       ``(B) is an amendment to a regulation described in 
     subparagraph (A) that was developed to align California 
     regulations to changes in the Institute for Transportation 
     Engineers standards, entitled `Performance Specification: 
     Pedestrian Traffic Control Signal Indications'.''.

     SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL 
                   EQUIPMENT.

       (a) Definitions.--Section 340 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6311) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (D) through (G) as 
     subparagraphs (H) through (K), respectively; and
       (B) by inserting after subparagraph (C) the following:
       ``(D) Very large commercial package air conditioning and 
     heating equipment.
       ``(E) Commercial refrigerators, freezers, and refrigerator-
     freezers.
       ``(F) Automatic commercial ice makers.
       ``(G) Commercial clothes washers.'';
       (2) in paragraph (2)(B), by striking ``small and large 
     commercial package air conditioning and heating equipment'' 
     and inserting ``commercial package air conditioning and 
     heating equipment, commercial refrigerators, freezers, and 
     refrigerator-freezers, automatic commercial ice makers, 
     commercial clothes washers'';
       (3) by striking paragraphs (8) and (9) and inserting the 
     following:

[[Page 12409]]

       ``(8)(A) The term `commercial package air conditioning and 
     heating equipment' means air-cooled, water-cooled, 
     evaporatively-cooled, or water source (not including ground 
     water source) electrically operated, unitary central air 
     conditioners and central air conditioning heat pumps for 
     commercial application.
       ``(B) The term `small commercial package air conditioning 
     and heating equipment' means commercial package air 
     conditioning and heating equipment that is rated below 
     135,000 Btu per hour (cooling capacity).
       ``(C) The term `large commercial package air conditioning 
     and heating equipment' means commercial package air 
     conditioning and heating equipment that is rated--
       ``(i) at or above 135,000 Btu per hour; and
       ``(ii) below 240,000 Btu per hour (cooling capacity).
       ``(D) The term `very large commercial package air 
     conditioning and heating equipment' means commercial package 
     air conditioning and heating equipment that is rated--
       ``(i) at or above 240,000 Btu per hour; and
       ``(ii) below 760,000 Btu per hour (cooling capacity).
       ``(9)(A) The term `commercial refrigerator, freezer, and 
     refrigerator-freezer' means refrigeration equipment that--
       ``(i) is not a consumer product (as defined in section 
     321);
       ``(ii) is not designed and marketed exclusively for 
     medical, scientific, or research purposes;
       ``(iii) operates at a chilled, frozen, combination chilled 
     and frozen, or variable temperature;
       ``(iv) displays or stores merchandise and other perishable 
     materials horizontally, semivertically, or vertically;
       ``(v) has transparent or solid doors, sliding or hinged 
     doors, a combination of hinged, sliding, transparent, or 
     solid doors, or no doors;
       ``(vi) is designed for pull-down temperature applications 
     or holding temperature applications; and
       ``(vii) is connected to a self-contained condensing unit or 
     to a remote condensing unit.
       ``(B) The term `holding temperature application' means a 
     use of commercial refrigeration equipment other than a pull-
     down temperature application, except a blast chiller or 
     freezer.
       ``(C) The term `integrated average temperature' means the 
     average temperature of all test package measurements taken 
     during the test.
       ``(D) The term `pull-down temperature application' means a 
     commercial refrigerator with doors that, when fully loaded 
     with 12 ounce beverage cans at 90 degrees F, can cool those 
     beverages to an average stable temperature of 38 degrees F in 
     12 hours or less.
       ``(E) The term `remote condensing unit' means a factory-
     made assembly of refrigerating components designed to 
     compress and liquefy a specific refrigerant that is remotely 
     located from the refrigerated equipment and consists of 1 or 
     more refrigerant compressors, refrigerant condensers, 
     condenser fans and motors, and factory supplied accessories.
       ``(F) The term `self-contained condensing unit' means a 
     factory-made assembly of refrigerating components designed to 
     compress and liquefy a specific refrigerant that is an 
     integral part of the refrigerated equipment and consists of 1 
     or more refrigerant compressors, refrigerant condensers, 
     condenser fans and motors, and factory supplied 
     accessories.''; and
       (4) by adding at the end the following:
       ``(19) The term `automatic commercial ice maker' means a 
     factory-made assembly (not necessarily shipped in 1 package) 
     that--
       ``(A) consists of a condensing unit and ice-making section 
     operating as an integrated unit, with means for making and 
     harvesting ice; and
       ``(B) may include means for storing ice, dispensing ice, or 
     storing and dispensing ice.
       ``(20) The term `commercial clothes washer' means a soft-
     mount front-loading or soft-mount top-loading clothes washer 
     that--
       ``(A) has a clothes container compartment that--
       ``(i) for horizontal-axis clothes washers, is not more than 
     3.5 cubic feet ; and
       ``(ii) for vertical-axis clothes washers, is not more than 
     4.0 cubic feet; and
       ``(B) is designed for use in--
       ``(i) applications in which the occupants of more than 1 
     household will be using the clothes washer, such as multi-
     family housing common areas and coin laundries; or
       ``(ii) other commercial applications.
       ``(21) The term `harvest rate' means the amount of ice (at 
     32 degrees F) in pounds produced per 24 hours.''.
       (b) Standards for Commercial Package Air Conditioning and 
     Heating Equipment.--Section 342(a) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313(a)) is amended--
       (1) in the subsection heading, by striking ``Small and 
     Large'' and inserting ``Small, Large, and Very Large'';
       (2) in paragraph (1), by inserting ``but before January 1, 
     2010,'' after ``January 1, 1994,'';
       (3) in paragraph (2), by inserting ``but before January 1, 
     2010,'' after ``January 1, 1995,''; and
       (4) in paragraph (6)--
       (A) in subparagraph (A)--
       (i) by inserting ``(i)'' after ``(A)'';
       (ii) by striking ``the date of enactment of the Energy 
     Policy Act of 1992'' and inserting ``January 1, 2010'';
       (iii) by inserting after ``large commercial package air 
     conditioning and heating equipment,'' the following: ``and 
     very large commercial package air conditioning and heating 
     equipment, or if ASHRAE/IES Standard 90.1, as in effect on 
     October 24, 1992, is amended with respect to any''; and
       (iv) by adding at the end the following:
       ``(ii) If ASHRAE/IES Standard 90.1 is not amended with 
     respect to small commercial package air conditioning and 
     heating equipment, large commercial package air conditioning 
     and heating equipment, and very large commercial package air 
     conditioning and heating equipment during the 5-year period 
     beginning on the effective date of a standard, the Secretary 
     may initiate a rulemaking to determine whether a more 
     stringent standard--
       ``(I) would result in significant additional conservation 
     of energy; and
       ``(II) is technologically feasible and economically 
     justified.''; and
       (B) in subparagraph (C)(ii), by inserting ``and very large 
     commercial package air conditioning and heating equipment'' 
     after ``large commercial package air conditioning and heating 
     equipment''; and
       (5) by adding at the end the following:
       ``(7) Small commercial package air conditioning and heating 
     equipment manufactured on or after January 1, 2010, shall 
     meet the following standards:
       ``(A) The minimum energy efficiency ratio of air-cooled 
     central air conditioners at or above 65,000 Btu per hour 
     (cooling capacity) and less than 135,000 Btu per hour 
     (cooling capacity) shall be--
       ``(i) 11.2 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 11.0 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).
       ``(B) The minimum energy efficiency ratio of air-cooled 
     central air conditioner heat pumps at or above 65,000 Btu per 
     hour (cooling capacity) and less than 135,000 Btu per hour 
     (cooling capacity) shall be--
       ``(i) 11.0 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 10.8 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).
       ``(C) The minimum coefficient of performance in the heating 
     mode of air-cooled central air conditioning heat pumps at or 
     above 65,000 Btu per hour (cooling capacity) and less than 
     135,000 Btu per hour (cooling capacity) shall be 3.3 (at a 
     high temperature rating of 47 degrees F db).
       ``(8) Large commercial package air conditioning and heating 
     equipment manufactured on or after January 1, 2010, shall 
     meet the following standards:
       ``(A) The minimum energy efficiency ratio of air-cooled 
     central air conditioners at or above 135,000 Btu per hour 
     (cooling capacity) and less than 240,000 Btu per hour 
     (cooling capacity) shall be--
       ``(i) 11.0 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 10.8 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).
       ``(B) The minimum energy efficiency ratio of air-cooled 
     central air conditioner heat pumps at or above 135,000 Btu 
     per hour (cooling capacity) and less than 240,000 Btu per 
     hour (cooling capacity) shall be--
       ``(i) 10.6 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 10.4 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).
       ``(C) The minimum coefficient of performance in the heating 
     mode of air-cooled central air conditioning heat pumps at or 
     above 135,000 Btu per hour (cooling capacity) and less than 
     240,000 Btu per hour (cooling capacity) shall be 3.2 (at a 
     high temperature rating of 47 degrees F db).
       ``(9) Very large commercial package air conditioning and 
     heating equipment manufactured on or after January 1, 2010, 
     shall meet the following standards:
       ``(A) The minimum energy efficiency ratio of air-cooled 
     central air conditioners at or above 240,000 Btu per hour 
     (cooling capacity) and less than 760,000 Btu per hour 
     (cooling capacity) shall be--
       ``(i) 10.0 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 9.8 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).
       ``(B) The minimum energy efficiency ratio of air-cooled 
     central air conditioner heat pumps at or above 240,000 Btu 
     per hour (cooling capacity) and less than 760,000 Btu per 
     hour (cooling capacity) shall be--
       ``(i) 9.5 for equipment with no heating or electric 
     resistance heating; and
       ``(ii) 9.3 for equipment with all other heating system 
     types that are integrated into the equipment (at a standard 
     rating of 95 degrees F db).

[[Page 12410]]

       ``(C) The minimum coefficient of performance in the heating 
     mode of air-cooled central air conditioning heat pumps at or 
     above 240,000 Btu per hour (cooling capacity) and less than 
     760,000 Btu per hour (cooling capacity) shall be 3.2 (at a 
     high temperature rating of 47 degrees F db).''.
       (c) Standards for Commercial Refrigerators, Freezers, and 
     Refrigerator-Freezers.--Section 342 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313) is amended by adding at the 
     end the following:
       ``(c) Commercial Refrigerators, Freezers, and Refrigerator-
     freezers.--(1) In this subsection:
       ``(A) The term `AV' means the adjusted volume 
     (ft3) (defined as 1.63 x frozen temperature 
     compartment volume (ft3) + chilled temperature 
     compartment volume (ft3)) with compartment volumes 
     measured in accordance with the Association of Home Appliance 
     Manufacturers Standard HRF1-1979.
       ``(B) The term `V' means the chilled or frozen compartment 
     volume (ft3) (as defined in the Association of 
     Home Appliance Manufacturers Standard HRF1-1979).
       ``(C) Other terms have such meanings as may be established 
     by the Secretary, based on industry-accepted definitions and 
     practice.
       ``(2) Each commercial refrigerator, freezer, and 
     refrigerator-freezer with a self-contained condensing unit 
     designed for holding temperature applications manufactured on 
     or after January 1, 2010, shall have a daily energy 
     consumption (in kilowatt hours per day) that does not exceed 
     the following:

  Refrigerators with solid doors..........  0.10 V + 2.04
  Refrigerators with transparent doors....  0.12 V + 3.34
  Freezers with solid doors...............  0.40 V + 1.38
  Freezers with transparent doors.........  0.75 V + 4.10
  Refrigerators/freezers with solid doors   0.27 AV - 0.71 or 0.70.
   the greater of.
 

       ``(3) Each commercial refrigerator with a self-contained 
     condensing unit designed for pull-down temperature 
     applications and transparent doors manufactured on or after 
     January 1, 2010, shall have a daily energy consumption (in 
     kilowatt hours per day) of not more than 0.126 V + 3.51.
       ``(4)(A) Not later than January 1, 2009, the Secretary 
     shall issue, by rule, standard levels for ice-cream freezers, 
     self-contained commercial refrigerators, freezers, and 
     refrigerator-freezers without doors, and remote condensing 
     commercial refrigerators, freezers, and refrigerator-
     freezers, with the standard levels effective for equipment 
     manufactured on or after January 1, 2012.
       ``(B) The Secretary may issue, by rule, standard levels for 
     other types of commercial refrigerators, freezers, and 
     refrigerator-freezers not covered by paragraph (2)(A) with 
     the standard levels effective for equipment manufactured 3 or 
     more years after the date on which the final rule is 
     published.
       ``(5)(A) Not later than January 1, 2013, the Secretary 
     shall issue a final rule to determine whether the standards 
     established under this subsection should be amended.
       ``(B) Not later than 3 years after the effective date of 
     any amended standards under subparagraph (A) or the 
     publication of a final rule determining that the standards 
     should not be amended, the Secretary shall issue a final rule 
     to determine whether the standards established under this 
     subsection or the amended standards, as applicable, should be 
     amended.
       ``(C) If the Secretary issues a final rule under 
     subparagraph (A) or (B) establishing amended standards, the 
     final rule shall provide that the amended standards apply to 
     products manufactured on or after the date that is--
       ``(i) 3 years after the date on which the final amended 
     standard is published; or
       ``(ii) if the Secretary determines, by rule, that 3 years 
     is inadequate, not later than 5 years after the date on which 
     the final rule is published.''.
       (d) Standards for Automatic Commercial Ice Makers.--Section 
     342 of the Energy Policy and Conservation Act (42 U.S.C. 
     6313) (as amended by subsection (c)) is amended by adding at 
     the end the following:
       ``(d) Automatic Commercial Ice Makers.--(1) Each automatic 
     commercial ice maker that produces cube type ice with 
     capacities between 50 and 2500 pounds per 24-hour period when 
     tested according to the test standard established in section 
     343(a)(7) and is manufactured on or after January 1, 2010, 
     shall meet the following standard levels:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Harvest Rate (lbs ice/  Maximum Energy Use (kWh/ Maximum Condenser Water
                   Equipment Type                         Type of Cooling             24 hours)               100 lbs Ice)        Use (gal/100 lbs Ice)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ice Making Head.....................................                    Water                     <500             7.80-0.0055H               200-0.022H
  ..................................................                                     500 and <1436             5.58-0.0011H               200-0.022H
  ..................................................                                              1436                      4.0               200-0.022H
Ice Making Head.....................................                      Air                     <450            10.26-0.0086H           Not Applicable
  ..................................................                                               450             6.89-0.0011H           Not Applicable
Remote Condensing...................................                      Air                    <1000             8.85-0.0038H           Not Applicable
(but not remote.....................................
compressor).........................................
  ..................................................                                              1000                     5.10           Not Applicable
Remote Condensing...................................                      Air                     <934             8.85-0.0038H           Not Applicable
and Remote..........................................
Compressor..........................................
  ..................................................                                               934                      5.3           Not Applicable
Self Contained......................................                    Water                     <200             11.40-0.019H              191-0.0315H
  ..................................................                                               200                     7.60              191-0.0315H
Self Contained......................................                      Air                     <175             18.0-0.0469H           Not Applicable
  ..................................................                                               175                     9.80           Not Applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.

       ``(2)(A) The Secretary may issue, by rule, standard levels 
     for types of automatic commercial ice makers that are not 
     covered by paragraph (1).
       ``(B) The standards established under subparagraph (A) 
     shall apply to products manufactured on or after the date 
     that is--
       ``(i) 3 years after the date on which the rule is published 
     under subparagraph (A); or
       ``(ii) if the Secretary determines, by rule, that 3 years 
     is inadequate, not later than 5 years after the date on which 
     the final rule is published.
       ``(3)(A) Not later than January 1, 2015, with respect to 
     the standards established under paragraph (1), and, with 
     respect to the standards established under paragraph (2), not 
     later than 5 years after the date on which the standards take 
     effect, the Secretary shall issue a final rule to determine 
     whether amending the applicable standards is technologically 
     feasible and economically justified.
       ``(B) Not later than 5 years after the effective date of 
     any amended standards under subparagraph (A) or the 
     publication of a final rule determining that amending the 
     standards is not technologically feasible or economically 
     justified, the Secretary shall issue a final rule to 
     determine whether amending the standards established under 
     paragraph (1) or the amended standards, as applicable, is 
     technologically feasible or economically justified.
       ``(C) If the Secretary issues a final rule under 
     subparagraph (A) or (B) establishing amended standards, the 
     final rule shall provide that the amended standards apply to 
     products manufactured on or after the date that is--
       ``(i) 3 years after the date on which the final amended 
     standard is published; or
       ``(ii) if the Secretary determines, by rule, that 3 years 
     is inadequate, not later than 5 years after the date on which 
     the final amended standard is published.
       ``(4) A final rule issued under paragraph (2) or (3) shall 
     establish standards at the maximum level that is technically 
     feasible and economically justified, as provided in 
     subsections (o) and (p) of section 325.''.
       (e) Standards for Commercial Clothes Washers.--Section 342 
     of the Energy Policy and Conservation Act (42 U.S.C. 6313) 
     (as amended by subsection (d)) is amended by adding at the 
     end the following:
       ``(e) Commercial Clothes Washers.--(1) Each commercial 
     clothes washer manufactured on or after January 1, 2007, 
     shall have--
       ``(A) a Modified Energy Factor of at least 1.26; and
       ``(B) a Water Factor of not more than 9.5.
       ``(2)(A)(i) Not later than January 1, 2010, the Secretary 
     shall publish a final rule to determine whether the standards 
     established under paragraph (1) should be amended.
       ``(ii) The rule published under clause (i) shall provide 
     that any amended standard shall apply to products 
     manufactured 3 years after the date on which the final 
     amended standard is published.
       ``(B)(i) Not later than January 1, 2015, the Secretary 
     shall publish a final rule to determine whether the standards 
     established under paragraph (1) should be amended.
       ``(ii) The rule published under clause (i) shall provide 
     that any amended standard shall apply to products 
     manufactured 3 years after the date on which the final 
     amended standard is published.''.

[[Page 12411]]

       (f) Test Procedures.--Section 343 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6314) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4)--
       (i) in subparagraph (A), by inserting ``very large 
     commercial package air conditioning and heating equipment,'' 
     after ``large commercial package air conditioning and heating 
     equipment,''; and
       (ii) in subparagraph (B), by inserting ``very large 
     commercial package air conditioning and heating equipment,'' 
     after ``large commercial package air conditioning and heating 
     equipment,''; and
       (B) by adding at the end the following:
       ``(6)(A)(i) In the case of commercial refrigerators, 
     freezers, and refrigerator-freezers, the test procedures 
     shall be--
       ``(I) the test procedures determined by the Secretary to be 
     generally accepted industry testing procedures; or
       ``(II) rating procedures developed or recognized by the 
     ASHRAE or by the American National Standards Institute.
       ``(ii) In the case of self-contained refrigerators, 
     freezers, and refrigerator-freezers to which standards are 
     applicable under paragraphs (2) and (3) of section 342(c), 
     the initial test procedures shall be the ASHRAE 117 test 
     procedure that is in effect on January 1, 2005.
       ``(B)(i) In the case of commercial refrigerators, freezers, 
     and refrigerators-freezers with doors covered by the 
     standards adopted in February 2002, by the California Energy 
     Commission, the rating temperatures shall be the integrated 
     average temperature of 38 degrees F ( 2 degrees F) for 
     refrigerator compartments and 0 degrees F ( 2 degrees F) for 
     freezer compartments.
       ``(C) The Secretary shall issue a rule in accordance with 
     paragraphs (2) and (3) to establish the appropriate rating 
     temperatures for the other products for which standards will 
     be established under subsection 342(c)(4).
       ``(D) In establishing the appropriate test temperatures 
     under this subparagraph, the Secretary shall follow the 
     procedures and meet the requirements under section 323(e).
       ``(E)(i) Not later than 180 days after the publication of 
     the new ASHRAE 117 test procedure, if the ASHRAE 117 test 
     procedure for commercial refrigerators, freezers, and 
     refrigerator-freezers is amended, the Secretary shall, by 
     rule, amend the test procedure for the product as necessary 
     to ensure that the test procedure is consistent with the 
     amended ASHRAE 117 test procedure, unless the Secretary makes 
     a determination, by rule, and supported by clear and 
     convincing evidence, that to do so would not meet the 
     requirements for test procedures under paragraphs (2) and 
     (3).
       ``(ii) If the Secretary determines that 180 days is an 
     insufficient period during which to review and adopt the 
     amended test procedure or rating procedure under clause (i), 
     the Secretary shall publish a notice in the Federal Register 
     stating the intent of the Secretary to wait not longer than 1 
     additional year before putting into effect an amended test 
     procedure or rating procedure.
       ``(F)(i) If a test procedure other than the ASHRAE 117 test 
     procedure is approved by the American National Standards 
     Institute, the Secretary shall, by rule--
       ``(I) review the relative strengths and weaknesses of the 
     new test procedure relative to the ASHRAE 117 test procedure; 
     and
       ``(II) based on that review, adopt 1 new test procedure for 
     use in the standards program.
       ``(ii) If a new test procedure is adopted under clause 
     (i)--
       ``(I) section 323(e) shall apply; and
       ``(II) subparagraph (B) shall apply to the adopted test 
     procedure.
       ``(7)(A) In the case of automatic commercial ice makers, 
     the test procedures shall be the test procedures specified in 
     Air-Conditioning and Refrigeration Institute Standard 810-
     2003, as in effect on January 1, 2005.
       ``(B)(i) If Air-Conditioning and Refrigeration Institute 
     Standard 810-2003 is amended, the Secretary shall amend the 
     test procedures established in subparagraph (A) as necessary 
     to be consistent with the amended Air-Conditioning and 
     Refrigeration Institute Standard, unless the Secretary 
     determines, by rule, published in the Federal Register and 
     supported by clear and convincing evidence, that to do so 
     would not meet the requirements for test procedures under 
     paragraphs (2) and (3).
       ``(ii) If the Secretary issues a rule under clause (i) 
     containing a determination described in clause (ii), the rule 
     may establish an amended test procedure for the product that 
     meets the requirements of paragraphs (2) and (3).
       ``(C) The Secretary shall comply with section 323(e) in 
     establishing any amended test procedure under this paragraph.
       ``(8) With respect to commercial clothes washers, the test 
     procedures shall be the same as the test procedures 
     established by the Secretary for residential clothes washers 
     under section 325(g).''; and
       (2) in subsection (d)(1), by inserting ``very large 
     commercial package air conditioning and heating equipment, 
     commercial refrigerators, freezers, and refrigerator-
     freezers, automatic commercial ice makers, commercial clothes 
     washers,'' after ``large commercial package air conditioning 
     and heating equipment,''.
       (g) Labeling.--Section 344(e) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6315(e)) is amended by inserting 
     ``very large commercial package air conditioning and heating 
     equipment, commercial refrigerators, freezers, and 
     refrigerator-freezers, automatic commercial ice makers, 
     commercial clothes washers,'' after ``large commercial 
     package air conditioning and heating equipment,'' each place 
     it appears.
       (h) Administration, Penalties, Enforcement, and 
     Preemption.--Section 345 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6316) is amended--
       (1) in subsection (a)--
       (A) in paragraph (7), by striking ``and'' at the end;
       (B) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(9) in the case of commercial clothes washers, section 
     327(b)(1) shall be applied as if the National Appliance 
     Energy Conservation Act of 1987 was the Energy Policy Act of 
     2005.'';
       (2) in the first sentence of subsection (b)(1), by striking 
     ``part B'' and inserting ``part A''; and
       (3) by adding at the end the following:
       ``(d)(1) Except as provided in paragraphs (2) and (3), 
     section 327 shall apply with respect to very large commercial 
     package air conditioning and heating equipment to the same 
     extent and in the same manner as section 327 applies under 
     part A on the date of enactment of this subsection.
       ``(2) Any State or local standard issued before the date of 
     enactment of this subsection shall not be preempted until the 
     standards established under section 342(a)(9) take effect on 
     January 1, 2010.
       ``(e)(1)(A) Subsections (a), (b), and (d) of section 326, 
     subsections (m) through (s) of section 325, and sections 328 
     through 336 shall apply with respect to commercial 
     refrigerators, freezers, and refrigerator-freezers to the 
     same extent and in the same manner as those provisions apply 
     under part A.
       ``(B) In applying those provisions to commercial 
     refrigerators, freezers, and refrigerator-freezers, 
     paragraphs (1), (2), (3), and (4) of subsection (a) shall 
     apply.
       ``(2)(A) Section 327 shall apply to commercial 
     refrigerators, freezers, and refrigerator-freezers for which 
     standards are established under paragraphs (2) and (3) of 
     section 342(c) to the same extent and in the same manner as 
     those provisions apply under part A on the date of enactment 
     of this subsection, except that any State or local standard 
     issued before the date of enactment of this subsection shall 
     not be preempted until the standards established under 
     paragraphs (2) and (3) of section 342(c) take effect.
       ``(B) In applying section 327 in accordance with 
     subparagraph (A), paragraphs (1), (2), and (3) of subsection 
     (a) shall apply.
       ``(3)(A) Section 327 shall apply to commercial 
     refrigerators, freezers, and refrigerator-freezers for which 
     standards are established under section 342(c)(4) to the same 
     extent and in the same manner as the provisions apply under 
     part A on the date of publication of the final rule by the 
     Secretary, except that any State or local standard issued 
     before the date of publication of the final rule by the 
     Secretary shall not be preempted until the standards take 
     effect.
       ``(B) In applying section 327 in accordance with 
     subparagraph (A), paragraphs (1), (2), and (3) of subsection 
     (a) shall apply.
       ``(4)(A) If the Secretary does not issue a final rule for a 
     specific type of commercial refrigerator, freezer, or 
     refrigerator-freezer within the time frame specified in 
     section 342(c)(5), subsections (b) and (c) of section 327 
     shall not apply to that specific type of refrigerator, 
     freezer, or refrigerator-freezer for the period beginning on 
     the date that is 2 years after the scheduled date for a final 
     rule and ending on the date on which the Secretary publishes 
     a final rule covering the specific type of refrigerator, 
     freezer, or refrigerator-freezer.
       ``(B) Any State or local standard issued before the date of 
     publication of the final rule shall not be preempted until 
     the final rule takes effect.
       ``(5)(A) In the case of any commercial refrigerator, 
     freezer, or refrigerator-freezer to which standards are 
     applicable under paragraphs (2) and (3) of section 342(c), 
     the Secretary shall require manufacturers to certify, through 
     an independent, nationally recognized testing or 
     certification program, that the commercial refrigerator, 
     freezer, or refrigerator-freezer meets the applicable 
     standard.
       ``(B) The Secretary shall, to the maximum extent 
     practicable, encourage the establishment of at least 2 
     independent testing and certification programs.
       ``(C) As part of certification, information on equipment 
     energy use and interior volume shall be made available to the 
     Secretary.
       ``(f)(1)(A)(i) Except as provided in clause (ii), section 
     327 shall apply to automatic commercial ice makers for which 
     standards have been established under section 342(d)(1) to 
     the same extent and in the same manner as the section applies 
     under part A on the date of enactment of this subsection.
       ``(ii) Any State standard issued before the date of 
     enactment of this subsection shall not be preempted until the 
     standards established under section 342(d)(1) take effect.

[[Page 12412]]

       ``(B) In applying section 327 to the equipment under 
     subparagraph (A), paragraphs (1), (2), and (3) of subsection 
     (a) shall apply.
       ``(2)(A)(i) Except as provided in clause (ii), section 327 
     shall apply to automatic commercial ice makers for which 
     standards have been established under section 342(d)(2) to 
     the same extent and in the same manner as the section applies 
     under part A on the date of publication of the final rule by 
     the Secretary.
       ``(ii) Any State standard issued before the date of 
     publication of the final rule by the Secretary shall not be 
     preempted until the standards established under section 
     342(d)(2) take effect.
       ``(B) In applying section 327 in accordance with 
     subparagraph (A), paragraphs (1), (2), and (3) of subsection 
     (a) shall apply.
       ``(3)(A) If the Secretary does not issue a final rule for a 
     specific type of automatic commercial ice maker within the 
     time frame specified in subsection 342(d), subsections (b) 
     and (c) of section 327 shall no longer apply to the specific 
     type of automatic commercial ice maker for the period 
     beginning on the day after the scheduled date for a final 
     rule and ending on the date on which the Secretary publishes 
     a final rule covering the specific type of automatic 
     commercial ice maker.
       ``(B) Any State standard issued before the publication of 
     the final rule shall not be preempted until the standards 
     established in the final rule take effect.
       ``(4)(A) The Secretary shall monitor whether manufacturers 
     are reducing harvest rates below tested values for the 
     purpose of bringing non-complying equipment into compliance.
       ``(B) If the Secretary finds that there has been a 
     substantial amount of manipulation with respect to harvest 
     rates under subparagraph (A), the Secretary shall take steps 
     to minimize the manipulation, such as requiring harvest rates 
     to be within 5 percent of tested values.
       ``(g)(1)(A) If the Secretary does not issue a final rule 
     for commercial clothes washers within the timeframe specified 
     in section 342(e)(2), subsections (b) and (c) of section 327 
     shall not apply to commercial clothes washers for the period 
     beginning on the day after the scheduled date for a final 
     rule and ending on the date on which the Secretary publishes 
     a final rule covering commercial clothes washers.
       ``(B) Any State or local standard issued before the date on 
     which the Secretary publishes a final rule shall not be 
     preempted until the standards established under section 
     342(e)(2) take effect.
       ``(2) The Secretary shall undertake an educational program 
     to inform owners of laundromats, multifamily housing, and 
     other sites where commercial clothes washers are located 
     about the new standard, including impacts on washer purchase 
     costs and options for recovering those costs through coin 
     collection.''.

     SEC. 137. EXPEDITED RULEMAKING.

       (a) Administrative Procedure.--The first sentence of 
     section 325(p) of the Energy Policy and Conservation Act (42 
     U.S.C. 6295(p)) is amended by striking ``Any'' and inserting 
     ``Except as provided in subsection (u), any''.
       (b) Administrative Procedure and Judicial Review.--The 
     first sentence of section 336(b)(2) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6306(b)(2)) is amended by 
     striking ``such chapter.'' and inserting ``that chapter, 
     except, notwithstanding section 706(2)(D) of title 5, United 
     States Code, no direct final rule prescribed or withdrawn 
     under section 325(u) may be held unlawful or set aside 
     because of the failure of the Secretary to observe a 
     procedure required by law other than the procedures required 
     under section 325(u).''.
       (c) Conforming Amendment.--Section 345(b)(1) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended 
     by inserting ``section 325(u),'' before ``section 326(a)''.

     SEC. 138. ENERGY LABELING.

       (a) Rulemaking on Effectiveness of Consumer Product 
     Labeling.--Section 324(a)(2) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding 
     at the end the following:
       ``(F)(i) Not later than 90 days after the date of enactment 
     of this subparagraph, the Commission shall initiate a 
     rulemaking to consider--
       ``(I) the effectiveness of the consumer products labeling 
     program in assisting consumers in making purchasing decisions 
     and improving energy efficiency; and
       ``(II) changes to the labeling rules (including categorical 
     labeling) that would improve the effectiveness of consumer 
     product labels.
       ``(ii) Not later than 2 years after the date of enactment 
     of this subparagraph, the Commission shall complete the 
     rulemaking initiated under clause (i).''.
       (b) Rulemaking on Labeling for Additional Products.--
     Section 324(a) of the Energy Policy and Conservation Act (42 
     U.S.C. 6294(a)) is amended by adding at the end the 
     following:
       ``(5)(A) For covered products described in subsections (u) 
     through (ee) of section 325, after a test procedure has been 
     prescribed under section 323, the Secretary or the 
     Commission, as appropriate, may prescribe, by rule, under 
     this section labeling requirements for the products.
       ``(B) In the case of products to which TP-1 standards under 
     section 325(y) apply, labeling requirements shall be based on 
     the `Standard for the Labeling of Distribution Transformer 
     Efficiency' prescribed by the National Electrical 
     Manufacturers Association (NEMA TP-3) as in effect on the 
     date of enactment of this paragraph.
       ``(C) In the case of dehumidifiers covered under section 
     325(dd), the Commission shall not require an `Energy Guide' 
     label.''.

     SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES 
                   STUDY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the National Association of Regulatory Utility Commissioners 
     and the National Association of State Energy Officials, shall 
     conduct a study of State and regional policies that promote 
     cost-effective programs to reduce energy consumption 
     (including energy efficiency programs) that are carried out 
     by--
       (1) utilities that are subject to State regulation; and
       (2) nonregulated utilities.
       (b) Consideration.--In conducting the study under 
     subsection (a), the Secretary shall take into consideration--
       (1) performance standards for achieving energy use and 
     demand reduction targets;
       (2) funding sources, including rate surcharges;
       (3) infrastructure planning approaches (including energy 
     efficiency programs) and infrastructure improvements;
       (4) the costs and benefits of consumer education programs 
     conducted by State and local governments and local utilities 
     to increase consumer awareness of energy efficiency 
     technologies and measures; and
       (5) methods of--
       (A) removing disincentives for utilities to implement 
     energy efficiency programs;
       (B) encouraging utilities to undertake voluntary energy 
     efficiency programs; and
       (C) ensuring appropriate returns on energy efficiency 
     programs.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that includes--
       (1) the findings of the study; and
       (2) any recommendations of the Secretary, including 
     recommendations on model policies to promote energy 
     efficiency programs.

     SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.

       (a) In General.--The Secretary shall establish a pilot 
     program under which the Secretary provides financial 
     assistance to at least 3, but not more than 7, States to 
     carry out pilot projects in the States for--
       (1) planning and adopting statewide programs that 
     encourage, for each year in which the pilot project is 
     carried out--
       (A) energy efficiency; and
       (B) reduction of consumption of electricity or natural gas 
     in the State by at least 0.75 percent, as compared to a 
     baseline determined by the Secretary for the period preceding 
     the implementation of the program; or
       (2) for any State that has adopted a statewide program as 
     of the date of enactment of this Act, activities that reduce 
     energy consumption in the State by expanding and improving 
     the program.
       (b) Verification.--A State that receives financial 
     assistance under subsection (a)(1) shall submit to the 
     Secretary independent verification of any energy savings 
     achieved through the statewide program.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010, to remain available 
     until expended.

     SEC. 141. ENERGY EFFICIENCY RESOURCE PROGRAMS.

       (a) Electric Utility Programs.--Section 111 of the Public 
     Utilities Regulatory Policy Act of 1978 (16 U.S.C. 2621) is 
     amended by adding at the end the following:
       ``(e) Energy Efficiency Resource Programs.--
       ``(1) Definitions.--In this subsection:
       ``(A) Demand baseline.--The term `demand baseline' means 
     the baseline determined by the Secretary for an appropriate 
     period preceding the implementation of an energy efficiency 
     resource program.
       ``(B) Energy efficiency resource programs.--The term 
     `energy efficiency resource program' means an energy 
     efficiency or other demand reduction program that is designed 
     to reduce annual electricity consumption or peak demand of 
     consumers served by an electric utility by a percentage of 
     the demand baseline of the utility that is equal to not less 
     than 0.75 percent of the number of years during which the 
     program is in effect.
       ``(2) Public hearings; determinations.--
       ``(A) As soon as practicable after the date of enactment of 
     this subsection, but not later than 3 years after that date, 
     each State regulatory authority (with respect to each 
     electric utility over which the State has ratemaking 
     authority) and each nonregulated electric utility shall, 
     after notice, conduct a public hearing on the benefits and 
     feasibility of implementing an energy efficiency resource 
     program.
       ``(B) A State regulatory authority or nonregulated utility 
     shall implement an energy

[[Page 12413]]

     efficiency resource program if, on the basis of a hearing 
     under subparagraph (A), the State regulatory authority or 
     nonregulated utility determines that the program would--
       ``(i) benefit end-use customers;
       ``(ii) be cost-effective based on total resource cost;
       ``(iii) serve the public welfare; and
       ``(iv) be feasible to implement.
       ``(3) Implementation.--
       ``(A) State regulatory authorities.--If a State regulatory 
     authority makes a determination under paragraph (2)(B), the 
     State regulatory authority shall--
       ``(i) require each electric utility over which the State 
     has ratemaking authority to implement an energy efficiency 
     resource program; and
       ``(ii) allow such a utility to recover any expenditures 
     incurred by the utility in implementing the energy efficiency 
     resource program.
       ``(B) Nonregulated electric utilities.--If a nonregulated 
     electric utility makes a determination under paragraph 
     (2)(B), the utility shall implement an energy efficiency 
     resource program.
       ``(4) Updating regulations.--A State regulatory authority 
     or nonregulated utility may update periodically a 
     determination under paragraph (2)(B) to determine whether an 
     energy efficiency resource program should be--
       ``(A) continued;,
       ``(B) modified; or
       ``(C) terminated.
       ``(5) Exception.--Paragraph (2) shall not apply to a State 
     regulatory authority (or any nonregulated electric utility 
     operating in the State) that demonstrates to the Secretary 
     that an energy efficiency resource program is in effect in 
     the State.''.
       (b) Gas Utilities.--Section 303 of the Public Utilities 
     Regulatory Policy Act of 1978 (15 U.S.C. 3203) is amended by 
     adding at the end the following:
       ``(e) Energy efficiency resource programs.--
       ``(1) Definitions.--In this subsection:
       ``(A) Demand baseline.--The term `demand baseline' means 
     the baseline determined by the Secretary for an appropriate 
     period preceding the implementation of an energy efficiency 
     resource program.
       ``(B) Energy efficiency resource programs.--The term 
     `energy efficiency resource program' means an energy 
     efficiency or other demand reduction program that is designed 
     to reduce annual gas consumption or peak demand of consumers 
     served by a gas utility by a percentage of the demand 
     baseline of the utility that is equal to not less than 0.75 
     percent of the number of years during which the program is in 
     effect.
       ``(2) Public hearings; determinations.--
       ``(A) As soon as practicable after the date of enactment of 
     this subsection, but not later than 3 years after that date, 
     each State regulatory authority (with respect to each gas 
     utility over which the State has ratemaking authority) and 
     each nonregulated gas utility shall, after notice, conduct a 
     public hearing on the benefits and feasibility of 
     implementing an energy efficiency resource program.
       ``(B) A State regulatory authority or nonregulated utility 
     shall implement an energy efficiency resource program if, on 
     the basis of a hearing under subparagraph (A), the State 
     regulatory authority or nonregulated utility determines that 
     the program would--
       ``(i) benefit end-use customers;
       ``(ii) be cost-effective based on total resource cost;
       ``(iii) serve the public welfare; and
       ``(iv) be feasible to implement.
       ``(3) Implementation.--
       ``(A) State regulatory authorities.--If a State regulatory 
     authority makes a determination under paragraph (2)(B), the 
     State regulatory authority shall--
       ``(i) require each gas utility over which the State has 
     ratemaking authority to implement an energy efficiency 
     resource program; and
       ``(ii) allow such a utility to recover any expenditures 
     incurred by the utility in implementing the energy efficiency 
     resource program.
       ``(B) Nonregulated gas utilities.--If a nonregulated gas 
     utility makes a determination under paragraph (2)(B), the 
     utility shall implement an energy efficiency resource 
     program.
       ``(4) Updating regulations.--A State regulatory authority 
     or nonregulated utility may update periodically a 
     determination under paragraph (2)(B) to determine whether an 
     energy efficiency resource program should be--
       ``(A) continued;,
       ``(B) modified; or
       ``(C) terminated.
       ``(5) Exception.--Paragraph (2) shall not apply to a State 
     regulatory authority (or any nonregulated gas utility 
     operating in the State) that demonstrates to the Secretary 
     that an energy efficiency resource program is in effect in 
     the State.''.

               Subtitle D--Measures to Conserve Petroleum

     SEC. 151. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.

       (a) Report.--
       (1) In general.--Not later than February 1, 2006, and 
     annually thereafter, the President shall submit to Congress a 
     report, based on the most recent edition of the Annual Energy 
     Outlook published by the Energy Information Administration, 
     assessing the progress made by the United States toward the 
     goal of reducing dependence on imported petroleum sources by 
     2015.
       (2) Contents.--The report under subsection (a) shall--
       (A) include a description of the implementation, during the 
     previous fiscal year, of provisions under this Act relating 
     to domestic crude petroleum production;
       (B) assess the effectiveness of those provisions in meeting 
     the goal described in paragraph (1); and
       (C) describe the progress in developing and implementing 
     measures under subsection (b).
       (b) Measures To Reduce Import Dependence Through Increased 
     Domestic Petroleum Conservation.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall develop and 
     implement measures to conserve petroleum in end-uses 
     throughout the economy of the United States sufficient to 
     reduce total demand for petroleum in the United States by 
     1,000,000 barrels per day from the amount projected for 
     calendar year 2015 in the reference case contained in the 
     report of the Energy Information Administration entitled 
     ``Annual Energy Outlook 2005''.
       (2) Contents.--The measures under paragraph (1) shall be 
     designed to ensure continued reliable and affordable energy 
     for consumers.
       (3) Implementation.--The measures under paragraph (1) shall 
     be implemented under existing authorities of appropriate 
     Federal executive agencies identified by the President.

                Subtitle E--Energy Efficiency in Housing

     SEC. 161. PUBLIC HOUSING CAPITAL FUND.

       Section 9 of the United States Housing Act of 1937 (42 
     U.S.C. 1437g) is amended--
       (1) in subsection (d)(1)--
       (A) in subparagraph (I), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (J), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(K) improvement of energy and water-use efficiency by 
     installing fixtures and fittings that conform to the American 
     Society of Mechanical Engineers/American National Standards 
     Institute standards A112.19.2-1998 and A112.18.1-2000, or any 
     revision thereto, applicable at the time of installation, and 
     by increasing energy efficiency and water conservation by 
     such other means as the Secretary determines are appropriate; 
     and
       ``(L) integrated utility management and capital planning to 
     maximize energy conservation and efficiency measures.''; and
       (2) in subsection (e)(2)(C)--
       (A) by striking ``The treatment'' and inserting the 
     following:
       ``(i) In general.--The treatment''; and
       (B) by adding at the end the following:
       ``(ii) Third party contracts.--Contracts described in 
     clause (i) may include contracts for--

       ``(I) equipment conversions to less costly utility sources;
       ``(II) projects with resident-paid utilities; and
       ``(III) adjustments to frozen base year consumption, 
     including systems repaired to meet applicable building and 
     safety codes and adjustments for occupancy rates increased by 
     rehabilitation.

       ``(iii) Term of contract.--The total term of a contract 
     described in clause (i) shall not exceed 20 years to allow 
     longer payback periods for retrofits, including--

       ``(I) windows;
       ``(II) heating system replacements;
       ``(III) wall insulation;
       ``(IV) site-based generation; and
       ``(V) advanced energy savings technologies, including 
     renewable energy generation and other such retrofits.''.

     SEC. 162. ENERGY EFFICIENT APPLIANCES.

       In purchasing appliances, a public housing agency shall 
     purchase energy-efficient appliances that are Energy Star 
     products or FEMP designated products, as such terms are 
     defined in section 552 of the National Energy Conservation 
     Policy Act (42 U.S.C. 8251 et seq.) (as amended by section 
     104) unless the purchase of energy-efficient appliances is 
     not cost-effective to the agency.

     SEC. 163. ENERGY EFFICIENCY STANDARDS.

       Section 109 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12709) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking `` 1 year after the date of enactment of 
     the Energy Policy Act of 1992'' and inserting ``September 30, 
     2006'';
       (ii) in subparagraph (A), by striking ``; and'' and 
     inserting a semicolon;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) rehabilitation and new construction of public and 
     assisted housing funded by HOPE VI revitalization grants, 
     established under section 24 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437v), where such standards are 
     determined to be cost effective by the Secretary of Housing 
     and Urban Development.''; and
       (B) in paragraph (2), in the first sentence, by inserting 
     ``, and, with respect to rehabilitation and new construction 
     of public and assisted housing funded by HOPE VI 
     revitalization grants, established under section 24 of

[[Page 12414]]

     the United States Housing Act of 1937 (42 U.S.C. 1437v), the 
     2003 International Energy Conservation Code'' after 
     ``Standard 90.1-1989')'';
       (2) in subsection (b)--
       (A) by striking ``within 1 year after the date of enactment 
     of the Energy Policy Act of 1992'' and inserting ``by 
     September 30, 2006''; and
       (B) by inserting ``, and, with respect to rehabilitation 
     and new construction of public and assisted housing funded by 
     HOPE VI revitalization grants, established under section 24 
     of the United States Housing Act of 1937 (42 U.S.C. 1437v), 
     the 2003 International Energy Conservation Code'' after 
     ``Standard 90.1-1989''; and
       (3) in subsection (c)--
       (A) in the heading, by inserting ``and the International 
     Energy Conservation Code'' after ``Model Energy Code''; and
       (B) by inserting ``, or, with respect to rehabilitation and 
     new construction of public and assisted housing funded by 
     HOPE VI revitalization grants, established under section 24 
     of the United States Housing Act of 1937 (42 U.S.C. 1437v), 
     the 2003 International Energy Conservation Code'' after 
     ``Standard 90.1-1989''.

     SEC. 164. ENERGY STRATEGY FOR THE DEPARTMENT OF HOUSING AND 
                   URBAN DEVELOPMENT.

       (a) Development of Strategy.--The Secretary of Housing and 
     Urban Development shall develop and implement an integrated 
     energy strategy to reduce utility expenses through cost-
     effective energy conservation and efficiency measures and 
     energy efficient design and construction of public and 
     assisted housing.
       (b) Contents of Strategy.--The energy strategy required 
     under subsection (a) shall include the development of energy 
     reduction goals and incentives for public housing agencies.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, and every 2 years thereafter, the 
     Secretary of Housing and Urban Development shall submit to 
     Congress a report describing--
       (1) the energy strategy required under subsection (a);
       (2) the actions taken by the Department of Housing and 
     Urban Development to monitor the energy usage of public 
     housing agencies; and
       (3) the progress, if any, in implementing the energy 
     strategy required under subsection (a).

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

     SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

       (a) Resource Assessments.--Not later than 180 days after 
     the date of enactment of this Act and each year thereafter, 
     the Secretary shall--
       (1) review the available assessments of renewable energy 
     resources within the United States, including solar, wind, 
     biomass, ocean (tidal, wave, current, and thermal), 
     geothermal, and hydroelectric energy resources; and
       (2) undertake new assessments as necessary, taking into 
     account changes in market conditions, available technologies, 
     and other relevant factors.
       (b) Reports.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act and each year thereafter, the Secretary 
     shall publish a report based on the most recent assessment 
     under subsection (a).
       (2) Contents.--The report shall contain--
       (A) a detailed inventory describing the available quantity 
     and characteristics of the renewable energy resources; and
       (B) such other information as the Secretary determines 
     would be useful in developing the renewable energy resources, 
     including--
       (i) descriptions of surrounding terrain, population and 
     load centers, nearby energy infrastructure, and the location 
     of energy and water resources;
       (ii) available estimates of the costs needed to develop 
     each resource;
       (iii) an identification of any barriers to providing 
     adequate transmission for remote sources of renewable energy 
     resources to current and emerging markets;
       (iv) recommendations for removing or addressing those 
     barriers; and
       (v) recommendations for providing access to the electrical 
     grid that do not unfairly disadvantage renewable or other 
     energy producers.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $10,000,000 for each of fiscal years 2006 through 2010.

     SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.

       (a) Incentive Payments.--Section 1212(a) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(a)) is amended--
       (1) by striking the last sentence;
       (2) by designating the first, second, and third sentences 
     as paragraphs (1), (2), and (3), respectively;
       (3) in paragraph (3) (as so designated), by striking ``and 
     which satisfies'' and all that follows through ``deems 
     necessary''; and
       (4) by adding at the end the following:
       ``(4)(A) Subject to subparagraph (B), if there are 
     insufficient appropriations to make full payments for 
     electric production from all qualified renewable energy 
     facilities for a fiscal year, the Secretary shall assign--
       ``(i) 60 percent of appropriated funds for the fiscal year 
     to facilities that use solar, wind, geothermal, or closed-
     loop (dedicated energy crops) biomass technologies to 
     generate electricity; and
       ``(ii) 40 percent of appropriated funds for the fiscal year 
     to other projects.
       ``(B) After submitting to Congress an explanation of the 
     reasons for the alteration, the Secretary may alter the 
     percentage requirements of subparagraph (A).''.
       (b) Qualified Renewable Energy Facility.--Section 1212(b) 
     of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is 
     amended--
       (1) by striking ``a State or any political'' and all that 
     follows through ``nonprofit electrical cooperative'' and 
     inserting ``a not-for-profit electric cooperative, a public 
     utility described in section 115 of the Internal Revenue Code 
     of 1986, a State, Commonwealth, territory, or possession of 
     the United States, or the District of Columbia, or a 
     political subdivision thereof, or an Indian tribal government 
     or subdivision thereof,''; and
       (2) by inserting ``landfill gas,'' after ``wind, 
     biomass,''.
       (c) Eligibility Window.--Section 1212(c) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by 
     striking ``during the 10-fiscal year period beginning with 
     the first full fiscal year occurring after the enactment of 
     this section'' and inserting ``before October 1, 2016''.
       (d) Payment Period.--Section 1212(d) of the Energy Policy 
     Act of 1992 (42 U.S.C. 13317(d)) is amended in the second 
     sentence by inserting ``, or in which the Secretary 
     determines that all necessary Federal and State 
     authorizations have been obtained to begin construction of 
     the facility'' after ``eligible for such payments''.
       (e) Amount of Payment.--Section 1212(e)(1) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the 
     first sentence by inserting ``landfill gas,'' after ``wind, 
     biomass,''.
       (f) Termination of Authority.--Section 1212(f) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is amended by 
     striking ``the expiration of'' and all that follows through 
     ``of this section'' and inserting ``September 30, 2026''.
       (g) Authorization of Appropriations.--Section 1212 of the 
     Energy Policy Act of 1992 (42 U.S.C. 13317) is amended by 
     striking subsection (g) and inserting the following:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2006 through 
     2026, to remain available until expended.''.

     SEC. 203. FEDERAL PURCHASE REQUIREMENT.

       (a) Definitions.--In this section:
       (1) Biomass.--The term ``biomass'' means any solid, 
     nonhazardous, cellulosic material that is derived from--
       (A) any of the following forest-related resources: mill 
     residue, precommercial thinning, slash, brush, or 
     nonmerchantable material;
       (B) a solid wood waste material--
       (i) including a waste pallet, crate, dunnage, manufacturing 
     and construction wood waste (other than pressure-treated, 
     chemically-treated, or painted wood waste), and landscape or 
     right-of-way tree trimming; but
       (ii) not including municipal solid waste (garbage), gas 
     derived from the biodegradation of solid waste, or paper that 
     is commonly recycled;
       (C) agriculture waste, including an orchard tree crop, 
     vineyard, grain, legume, sugar, and other crop byproduct or 
     residue, and a livestock waste nutrient; or
       (D) a plant that is grown exclusively as a fuel for the 
     production of electricity.
       (2) Renewable energy.--The term ``renewable energy'' means 
     electric energy generated from solar, wind, biomass, landfill 
     gas, geothermal, municipal solid waste, or new hydroelectric 
     generation capacity achieved from increased efficiency or 
     additions of new capacity at an existing hydroelectric 
     project.
       (b) Requirement.--The President, acting through the 
     Secretary, shall seek to ensure that, to the extent 
     economically feasible and technically practicable, of the 
     total quantity of electric energy the Federal Government 
     consumes during any fiscal year, the following amounts shall 
     be renewable energy:
       (1) Not less than 3 percent in each of fiscal years 2007 
     through 2009.
       (2) Not less than 5 percent in each of fiscal years 2010 
     through 2012.
       (3) Not less than 7.5 percent in fiscal year 2013 and each 
     fiscal year thereafter.
       (c) Calculation.--For purposes of determining compliance 
     with the requirement of this section, the quantity of 
     renewable energy shall be doubled if--
       (1) the renewable energy is produced and used onsite at a 
     Federal facility;
       (2) the renewable energy is produced on Federal land and 
     used at a Federal facility; or
       (3) the renewable energy is produced on Indian land (as 
     defined in section 2601 of the Energy Policy Act of 1992) and 
     used at a Federal facility.
       (d) Report.--Not later than April 15, 2007, and every 2 
     years thereafter, the Secretary

[[Page 12415]]

     shall provide to Congress a report on the progress of the 
     Federal Government in meeting the goals established by this 
     section.

     SEC. 204. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

       (a) Definitions.--In this section:
       (1) Cellulosic biomass ethanol.--The term ``cellulosic 
     biomass ethanol'' means ethanol derived from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis, including--
       (A) dedicated energy crops and trees;
       (B) wood and wood residues;
       (C) plants;
       (D) grasses;
       (E) agricultural residues; and
       (F) fibers.
       (2) Renewable fuel.--
       (A) In general.--The term ``renewable fuel'' means motor 
     vehicle fuel that--
       (i)(I) is produced from grain, starch, oilseeds, sugar 
     cane, sugar beets, sugar components, tobacco, potatoes, or 
     other biomass; or
       (II) is natural gas produced from a biogas source, 
     including a landfill, sewage waste treatment plant, feedlot, 
     or other place where decaying organic material is found; and
       (ii) is used to replace or reduce the quantity of fossil 
     fuel present in a fuel mixture used to operate a motor 
     vehicle.
       (B) Inclusions.--The term ``renewable fuel'' includes--
       (i) cellulosic biomass ethanol;
       (ii) waste derived ethanol;
       (iii) biodiesel (as defined in section 312(f) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13220(f)); and
       (iv) any blending components derived from renewable fuel, 
     except that only the renewable fuel portion of the blending 
     component shall be considered part of the applicable volume 
     under the renewable fuel program established by this section.
       (3) Small refinery.--The term ``small refinery'' means a 
     refinery for which average aggregate daily crude oil 
     throughput for the calendar year (as determined by dividing 
     the aggregate throughput for the calendar year by the number 
     of days in the calendar year) does not exceed 75,000 barrels.
       (4) Waste derived ethanol.--The term ``waste derived 
     ethanol'' means ethanol derived from--
       (A) animal wastes, including poultry fats and poultry 
     wastes, and other waste materials; or
       (B) municipal solid waste.
       (b) Renewable Fuel Program.--
       (1) In general.--
       (A) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     ensuring that motor vehicle fuel sold or dispensed to 
     consumers in the contiguous United States, on an annual 
     average basis, contains the applicable volume of renewable 
     fuel specified in paragraph (2).
       (B) Compliance.--Regardless of the date of issuance, the 
     regulations shall contain compliance provisions for refiners, 
     blenders, and importers, as appropriate, to ensure that the 
     requirements of this section are met, but shall not restrict 
     where renewable fuel can be used, or impose any per-gallon 
     obligation for the use of renewable fuel.
       (C) No regulations.--If the Secretary does not issue the 
     regulations, the applicable percentage referred to in 
     paragraph (3), on a volume percentage of gasoline basis, 
     shall be 3.2 in 2006.
       (2) Applicable volume.--
       (A) Calendar years 2006 through 2012.--For the purpose of 
     paragraph (1), the applicable volume for any of calendar 
     years 2006 through 2012 shall be determined in accordance 
     with the following table:

                  Applicable volume of renewable fuel

Calendar year:                                 (In billions of gallons)
    2006..........................................................4.0  
    2007..........................................................4.7  
    2008..........................................................5.4  
    2009..........................................................6.1  
    2010..........................................................6.8  
    2011..........................................................7.4  
    2012..........................................................8.0  
       (B) Calendar years 2013 and thereafter.--
       (i) In general.--Subject to clause (ii), for the purpose of 
     paragraph (1), the applicable volume for calendar year 2013 
     and each calendar year thereafter shall be determined by the 
     Secretary, in coordination with the Secretary of Agriculture 
     and the Administrator of the Environmental Protection Agency, 
     based on a review of the implementation of the program during 
     calendar years 2006 through 2012, including a review of--

       (I) the impact of the use of renewable fuels on the 
     environment, air quality, energy security, job creation, and 
     rural economic development; and
       (II) the expected annual rate of future production of 
     renewable fuels, including cellulosic ethanol.

       (ii) Minimum quantity derived from cellulosic biomass.--For 
     calendar year 2013 and each calendar year thereafter--

       (I) the applicable volume referred to in clause (i) shall 
     contain a minimum of 250,000,000 gallons that are derived 
     from cellulosic biomass; and
       (II) the 2.5-to-1 ratio referred to in subsection (e) shall 
     not apply.

       (C) Limitation.--An increase in the applicable volume for a 
     calendar year under subparagraph (B) shall be not less than 
     the product obtained by multiplying--
       (i) the number of gallons of gasoline that the Secretary 
     estimates will be sold or introduced into commerce during the 
     calendar year; and
       (ii) the quotient obtained by dividing--

       (I) 8,000,000,000; by
       (II) the number of gallons of gasoline sold or introduced 
     into commerce during calendar year 2012.

       (c) Noncontiguous State Opt-In.--
       (1) In general.--On the petition of a noncontiguous State, 
     the Secretary may allow the renewable fuel program 
     established under this subtitle to apply in the noncontiguous 
     State at the same time or any time after the Secretary issues 
     regulations under subsection (b).
       (2) Other actions.--The Secretary may--
       (A) issue or revise regulations under subsection (b);
       (B) establish applicable percentages under subsection (d);
       (C) provide for the generation of credits under subsection 
     (f); and
       (D) take such other actions as are necessary to allow for 
     the application of the renewable fuels program in a 
     noncontiguous State.
       (d) Applicable Percentages.--
       (1) Provision of estimate of volumes of gasoline sales.--
     Not later than October 31 of each of calendar years 2006 
     through 2011, the Administrator of the Energy Information 
     Administration shall provide to the Secretary an estimate of 
     the volumes of gasoline that will be sold or introduced into 
     commerce in the United States during the following calendar 
     year.
       (2) Determination of applicable percentages.--
       (A) In general.--Not later than November 30 of each of 
     calendar years 2006 through 2011, based on the estimate 
     provided under paragraph (1), the Secretary shall determine 
     and publish in the Federal Register, with respect to the 
     following calendar year, the renewable fuel obligation that 
     ensures that the requirements under subsection (b) are met.
       (B) Required elements.--The renewable fuel obligation 
     determined for a calendar year under subparagraph (A) shall--
       (i) be applicable to refiners, blenders, and importers, as 
     appropriate;
       (ii) be expressed in terms of a volume percentage of 
     gasoline sold or introduced into commerce; and
       (iii) subject to paragraph (3)(A), consist of a single 
     applicable percentage that applies to all categories of 
     persons specified in clause (i).
       (3) Adjustments.--In determining the applicable percentage 
     for a calendar year, the Secretary shall make adjustments--
       (A) to prevent the imposition of redundant obligations to 
     any person specified in paragraph (2)(B)(i); and
       (B) to account for the use of renewable fuel during the 
     previous calendar year by small refineries that are exempt 
     under subsection (i).
       (e) Equivalency.--For the purpose of subsection (b), 1 
     gallon of either cellulosic biomass ethanol or waste derived 
     ethanol shall be considered to be the equivalent of 2.5 
     gallons of renewable fuel.
       (f) Credit Program.--
       (1) Regulations.--The regulations issued to carry out this 
     section shall provide for--
       (A) the generation of an appropriate amount of credits by 
     any person that refines, blends, or imports gasoline that 
     contains a quantity of renewable fuel that is greater than 
     the quantity required under subsection (b);
       (B) the generation of an appropriate amount of credits for 
     biodiesel fuel; and
       (C) if a small refinery notifies the Secretary that the 
     small refinery waives the exemption provided by this section, 
     the generation of credits by the small refinery beginning in 
     the year following the notification.
       (2) Use of credits.--A person that generates credits under 
     paragraph (1) may use the credits, or transfer all or a 
     portion of the credits to another person, for the purpose of 
     complying with subsection (b).
       (3) Life of credits.--A credit generated under this 
     paragraph shall be valid to demonstrate compliance for the 
     calendar year in which the credit was generated.
       (4) Inability to purchase sufficient credits.--The 
     regulations issued to carry out this section shall include 
     provisions permitting any person that is unable to generate 
     or purchase sufficient credits to meet the requirement under 
     subsection (b) to carry forward a renewable fuels deficit if, 
     for the calendar year following the year in which the 
     renewable fuels deficit is created--
       (A) the person achieves compliance with the renewable fuels 
     requirement under subsection (b); and
       (B) generates or purchases additional renewable fuels 
     credits to offset the renewable fuels deficit of the 
     preceding year.
       (g) Seasonal Variations in Renewable Fuel Use.--
       (1) Study.--For each of calendar years 2006 through 2012, 
     the Administrator of the Energy Information Administration 
     shall conduct a study of renewable fuels blending to 
     determine whether there are excessive seasonal variations in 
     the use of renewable fuels.

[[Page 12416]]

       (2) Regulation of excessive seasonal variations.--If, for 
     any calendar year, the Administrator of the Energy 
     Information Administration, based on the study under 
     subparagraph (A), makes the determinations specified in 
     paragraph (3), the Secretary shall issue regulations to 
     ensure that 35 percent or more of the quantity of renewable 
     fuels necessary to meet the requirements under subsection (b) 
     is used during each of the periods specified in paragraph (4) 
     of each subsequent calendar year.
       (3) Determinations.--The determinations referred to in 
     paragraph (2) are that--
       (A) less than 35 percent of the quantity of renewable fuels 
     necessary to meet the requirements under subsection (b) has 
     been used during 1 of the periods specified in paragraph (4) 
     of the calendar year;
       (B) a pattern of excessive seasonal variation described in 
     subparagraph (A) will continue in subsequent calendar years; 
     and
       (C) issuing regulations or other requirements to impose a 
     35 percent or more seasonal use of renewable fuels will not--
       (i) prevent or interfere with the attainment of national 
     ambient air quality standards; or
       (ii) significantly increase the price of motor fuels to the 
     consumer.
       (4) Periods.--The 2 periods referred to in this paragraph 
     are--
       (A) April through September; and
       (B) January through March and October through December.
       (5) State exemption from seasonality requirements.--
     Notwithstanding any other provision of law, a seasonality 
     requirement relating to the use of renewable fuel established 
     in accordance with this subsection shall not apply to any 
     State that receives a waiver under section 209(b) of the 
     Clean Air Act (42 U.S.C. 7543(b)).
       (h) Waivers.--
       (1) In general.--The Secretary, in consultation with the 
     Secretary of Agriculture and the Administrator of the 
     Environmental Protection Agency, may waive the requirements 
     under subsection (b), in whole or in part, on a petition by 1 
     or more States by reducing the national quantity of renewable 
     fuel required under this section--
       (A) based on a determination by the Secretary, after public 
     notice and opportunity for comment, that implementation of 
     the requirement would severely harm the economy or 
     environment of a State, a region, or the United States; or
       (B) based on a determination by the Secretary, after public 
     notice and opportunity for comment, that there is an 
     inadequate domestic supply to meet the requirement.
       (2) Petitions for waivers.--Not later than 90 days after 
     the date on which a petition is received by the Secretary 
     under paragraph (1), the Secretary, in consultation with the 
     Secretary of Agriculture and the Administrator of the 
     Environmental Protection Agency, shall approve or disapprove 
     the petition.
       (3) Termination of waivers.--A waiver granted under 
     paragraph (1) shall terminate on the date that is 1 year 
     after the date on which the waiver was granted, but may be 
     renewed by the Secretary, after consultation with the 
     Secretary of Agriculture and the Administrator of the 
     Environmental Protection Agency.
       (i) Small Refineries.--
       (1) In general.--Subsection (b) shall not apply to small 
     refineries until the first calendar year beginning more than 
     5 years after the first year set forth in the table in 
     subsection (b)(2)(A).
       (2) Study.--Not later than December 31, 2008, the Secretary 
     shall complete a study to determine whether the requirements 
     under subsection (b) would impose a disproportionate economic 
     hardship on small refineries.
       (3) Small refineries and economic hardship.--For any small 
     refinery that the Secretary determines would experience a 
     disproportionate economic hardship, the Secretary shall 
     extend the small refinery exemption for the small refinery 
     for not less than 2 additional years.
       (4) Economic hardship.--
       (A) Extension of exemption.--A small refinery may at any 
     time petition the Secretary for an extension of the exemption 
     from the requirements under subsection (b) for the reason of 
     disproportionate economic hardship.
       (B) Evaluation.--In evaluating a hardship petition, the 
     Secretary, in consultation with the Administrator and 
     Secretary of Agriculture, shall consider the findings of the 
     study in addition to other economic factors.
       (C) Deadline for action on petitions.--The Secretary shall 
     act on any petition submitted by a small refinery for a 
     hardship exemption not later than 90 days after the receipt 
     of the petition.
       (5) Credit program.--Subsection (f)(1)(C) shall apply to 
     each small refinery that waives an exemption under this 
     paragraph.
       (6) Opt-in for small refiners.--A small refinery shall be 
     subject to subsection (b) if the small refinery notifies the 
     Secretary that the small refinery waives the exemption under 
     paragraph (3).
       (j) Cellulosic Biomass and Cane Sugar Loan Guarantee 
     Program.--
       (1) In general.--Subject to the availability of 
     appropriations, funds shall be made available, and remain 
     available until expended, to pay the cost (as defined in the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of 
     loan guarantees issued under section 19 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5919) to carry out commercial demonstration projects 
     for cellulosic biomass and sucrose-derived ethanol.
       (2) Demonstration projects.--
       (A) In general.--The Secretary shall issue loan guarantees 
     under this section to carry out projects to commercially 
     demonstrate the feasibility and viability of converting 
     cellulosic biomass derived from agricultural residue such as 
     corn stover or straw or cane sugar and related products into 
     ethanol.
       (B) Design capacity.--Each project shall have a design 
     capacity to produce at least 15,000,000 gallons of cellulose 
     ethanol each year.
       (3) Applicant assurances.--An applicant for a loan 
     guarantee under this section shall provide assurances, 
     satisfactory to the Secretary, that--
       (A) the project design has been validated through the 
     operation of a continuous process facility with a cumulative 
     output of at least 50,000 gallons of ethanol;
       (B) the project has been subject to a full technical 
     review;
       (C) the project is covered by adequate project performance 
     guarantees;
       (D) the project, with the loan guarantee, is economically 
     viable; and
       (E) there is a reasonable assurance of repayment of the 
     guaranteed loan.
       (4) Limitations.--
       (A) Maximum guarantee.--Except as provided in subparagraph 
     (B), notwithstanding section 19(c)(2)(A) of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5919(c)(2)(A)), a loan guarantee under this section 
     may be issued for up to 80 percent of the estimated cost of a 
     project, but may not exceed $250,000,000 for a project.
       (B) Additional guarantees.--
       (i) In general.--The Secretary may issue additional loan 
     guarantees for a project to cover up to 80 percent of the 
     excess of actual project cost over estimated project cost but 
     not to exceed 15 percent of the amount of the original 
     guarantee.
       (ii) Principal and interest.--Subject to subparagraph (A), 
     the Secretary shall guarantee 100 percent of the principal 
     and interest of a loan made under subparagraph (A).
       (5) Equity contributions.--To be eligible for a loan 
     guarantee under this section, an applicant for the loan 
     guarantee shall have binding commitments from equity 
     investors to provide an initial equity contribution of at 
     least 20 percent of the total project cost.
       (6) Effect of other laws.--The following provisions are 
     inapplicable to a loan guarantee made under this section:
       (A) Subsections (m) and (p) of section 19 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5919).
       (B) The first, third, and fourth sentences of section 
     19(g)(4) of that Act.
       (7) Application.--An application for a loan guarantee under 
     this section shall be approved or disapproved by the 
     Secretary not later than 90 days after the application is 
     received by the Secretary.

     SEC. 205. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND 
                   BIODIESEL PURCHASING REQUIREMENT.

       (a) In General.--Title III of the Energy Policy Act of 1992 
     is amended by striking section 306 (42 U.S.C. 13215) and 
     inserting the following:

     ``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND 
                   BIODIESEL PURCHASING REQUIREMENT.

       ``(a) Ethanol-Blended Gasoline.--The head of each Federal 
     agency shall ensure that, in areas in which ethanol-blended 
     gasoline is reasonably available at a generally competitive 
     price, the Federal agency purchases ethanol-blended gasoline 
     containing at least 10 percent ethanol rather than 
     nonethanol-blended gasoline, for use in vehicles used by the 
     agency that use gasoline.
       ``(b) Biodiesel.--
       ``(1) Definition of biodiesel.--In this subsection, the 
     term `biodiesel' has the meaning given the term in section 
     312(f).
       ``(2) Requirement.--The head of each Federal agency shall 
     ensure that the Federal agency purchases, for use in fueling 
     fleet vehicles that use diesel fuel used by the Federal 
     agency at the location at which fleet vehicles of the Federal 
     agency are centrally fueled, in areas in which the biodiesel-
     blended diesel fuel described in subparagraphs (A) and (B) is 
     available at a generally competitive price--
       ``(A) as of the date that is 5 years after the date of 
     enactment of this paragraph, biodiesel-blended diesel fuel 
     that contains at least 2 percent biodiesel, rather than 
     nonbiodiesel-blended diesel fuel; and
       ``(B) as of the date that is 10 years after the date of 
     enactment of this paragraph, biodiesel-blended diesel fuel 
     that contains at least 20 percent biodiesel, rather than 
     nonbiodiesel-blended diesel fuel.
       ``(3) Requirement of federal law.--The provisions of this 
     subsection shall not be considered a requirement of Federal 
     law for the purposes of section 312.
       ``(c) Exemption.--This section does not apply to fuel used 
     in vehicles excluded from the definition of `fleet' by 
     subparagraphs (A) through (H) of section 301(9).''.

[[Page 12417]]

       (b) Table of Contents Amendment.--The table of contents of 
     the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
     amended by striking the item relating to section 306 and 
     inserting the following:

``Sec. 306. Federal agency ethanol-blended gasoline and biodiesel 
              purchasing requirement.''.

     SEC. 206. DATA COLLECTION.

       Section 205 of the Department of Energy Organization Act 
     (42 U.S.C. 7135) is amended by adding at the end the 
     following:
       ``(m)(1) In order to improve the ability to evaluate the 
     effectiveness of the renewable fuels mandate of the United 
     States, the Administrator shall conduct and publish the 
     results of a survey of renewable fuels demand in the motor 
     vehicle fuels market in the United States monthly, and in a 
     manner designed to protect the confidentiality of individual 
     responses.
       ``(2) In conducting the survey, the Administrator shall 
     collect information both on a national and regional basis, 
     including--
       ``(A) information on--
       ``(i) the quantity of renewable fuels produced;
       ``(ii) the quantity of renewable fuels blended;
       ``(iii) the quantity of renewable fuels imported; and
       ``(iv) the quantity of renewable fuels demanded; and
       ``(B) market price data.''.

     SEC. 207. SUGAR CANE ETHANOL PROGRAM.

       (a) Definition of Program.--In this section, the term 
     ``program'' means the Sugar Cane Ethanol Program established 
     by subsection (b).
       (b) Establishment.--There is established within the 
     Department a program to be known as the ``Sugar Cane Ethanol 
     Program''.
       (c) Project.--
       (1) In general.--Subject to the availability of 
     appropriations under subsection (d), in carrying out the 
     program, the Secretary shall establish a project that is--
       (A) carried out in multiple States--
       (i) in each of which is produced cane sugar that is 
     eligible for loans under section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272), or a similar subsequent authority; and
       (ii) at the option of each such State, that have an 
     incentive program that requires the use of ethanol in the 
     State; and
       (B) designed to study the production of ethanol from cane 
     sugar, sugarcane, and sugarcane byproducts.
       (2) Requirements.--A project described in paragraph (1) 
     shall--
       (A) be limited to the production of ethanol in the States 
     of Florida, Louisiana, Texas, and Hawaii in a way similar to 
     the existing program for the processing of corn for ethanol 
     to demonstrate that the process may be applicable to cane 
     sugar, sugarcane, and sugarcane byproducts;
       (B) include information on the ways in which the scale of 
     production may be replicated once the sugar cane industry has 
     located sites for, and constructed, ethanol production 
     facilities; and
       (C) not last more than 3 years.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $36,000,000, to 
     remain available until expended.

     SEC. 208. MODIFICATION OF COMMODITY CREDIT CORPORATION 
                   BIOENERGY PROGRAM.

       Section 9010(a)(3)(A) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8108(a)(3)(A)) is amended by 
     inserting ``potatoes, sugarcane, sugar beets, products of 
     sugarcane or sugar beets,'' after ``sesame seed,''.

     SEC. 209. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

       (a) In General.--Subject to the availability of 
     appropriations under subsection (d), the Secretary shall, in 
     consultation with the Secretary of Agriculture and the 
     Biomass Research and Development Technical Advisory Committee 
     established under section 306 of the Biomass Research and 
     Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
     note), establish a program, to be known as the ``Advanced 
     Biofuel Technologies Program'', to demonstrate advanced 
     technologies for the production of alternative transportation 
     fuels.
       (b) Priority.--In carrying out the program under subsection 
     (a), the Secretary shall give priority to projects that 
     enhance the geographical diversity of alternative fuels 
     production and utilize feedstocks that represent 10 percent 
     or less of ethanol or biodiesel fuel production in the United 
     States during the previous fiscal year.
       (c) Demonstration Projects.--
       (1) In general.--As part of the program under subsection 
     (a), the Secretary shall fund demonstration projects--
       (A) to develop not less than 4 different conversion 
     technologies for producing cellulosic biomass ethanol; and
       (B) to develop not less than 5 technologies for coproducing 
     value-added bioproducts (such as fertilizers, herbicides, and 
     pesticides) resulting from the production of biodiesel fuel.
       (2) Administration.--Demonstration projects under this 
     subsection shall be--
       (A) conducted based on a merit-reviewed, competitive 
     process; and
       (B) subject to the cost-sharing requirements of section 
     1002.
       (d) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this section $110,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 210. ASSISTANCE FOR RURAL COMMUNITIES WITH HIGH ENERGY 
                   COSTS.

       Beginning on the date of enactment of this Act and 
     notwithstanding any other provision of law, the Secretary and 
     the Administrator of the Rural Utilities Service shall use 
     the authorities provided under the Rural Electrification Act 
     of 1936 (7 U.S.C. 901 et seq.) and section 331(b)(4) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1981(b)(4)) (including deferral, extension, refinancing, 
     restructuring, and reduction of loans made under those Acts) 
     to aid electric borrowers that serve rural communities in 
     Alaska with extremely high energy costs to--
       (1) reduce rates for customers;
       (2) maintain reliable service;
       (3) preserve the economic feasibility of the electric 
     systems; and
       (4) avoid default.

                       Subtitle B--Insular Energy

     SEC. 221. DEFINITIONS.

       In this subtitle:
       (1) Distributed generation.--The term ``distributed 
     generation'' means energy supplied in a rural or off-grid 
     area.
       (2) Insular area.--The term ``insular area'' means--
       (A) Guam;
       (B) American Samoa;
       (C) the Commonwealth of the Northern Mariana Islands;
       (D) the Federated States of Micronesia;
       (E) the Republic of the Marshall Islands;
       (F) the Republic of Palau;
       (G) the United States Virgin Islands; and
       (H) the Commonwealth of Puerto Rico.

     SEC. 222. ASSESSMENT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary (in consultation with 
     the Secretary of Interior) shall--
       (1) conduct an assessment of the energy needs of insular 
     areas; and
       (2) submit a report describing the results of the 
     assessment to--
       (A) the Committee on Energy and Natural Resources of the 
     Senate;
       (B) the Committee on Energy and Commerce of the House of 
     Representatives; and
       (C) the Committee on Resources of the House of 
     Representatives.
       (b) Strategies and Projects.--In conducting the assessment, 
     for each of the insular areas, the Secretary shall identify 
     and evaluate the strategies or projects with the greatest 
     potential for reducing the dependence of the insular area on 
     imported fossil fuels as used for the generation of 
     electricity, including strategies and projects for--
       (1) improved supply-side efficiency of centralized 
     electrical generation, transmission, and distribution 
     systems;
       (2) improved demand-side management through--
       (A) the application of established standards for energy 
     efficiency for appliances;
       (B) the conduct of energy audits for business and 
     industrial customers; and
       (C) the use of energy savings performance contracts;
       (3) increased use of renewable energy, including--
       (A) solar thermal energy for electric generation;
       (B) solar thermal energy for water heating in large 
     buildings, such as hotels, hospitals, government buildings, 
     and residences;
       (C) photovoltaic energy;
       (D) wind energy;
       (E) hydroelectric energy;
       (F) wave energy;
       (G) energy from ocean thermal resources, including ocean 
     thermal-cooling for community air conditioning;
       (H) water vapor condensation for the production of potable 
     water;
       (I) fossil fuel and renewable hybrid electrical generation 
     systems; and
       (J) other strategies or projects that the Secretary may 
     identify as having significant potential; and
       (4) fuel substitution and minimization with indigenous 
     biofuels, such as coconut oil.
       (c) Distributed Generation.--In conducting the assessment, 
     for each insular area with a significant need for distributed 
     generation, the Secretary shall identify and evaluate the 
     most promising strategies and projects described in 
     paragraphs (3) and (4) of subsection (b) for meeting that 
     need.
       (d) Factors.--In assessing the potential of any strategy or 
     project under this section, the Secretary shall consider--
       (1) the estimated cost of the power or energy to be 
     produced, including--
       (A) any additional costs associated with the distribution 
     of the generation; and
       (B) the long-term availability of the generation source;
       (2) the capacity of the local electrical utility to manage, 
     operate, and maintain any project that may be undertaken; and
       (3) other factors the Secretary considers to be 
     appropriate.

     SEC. 223. PROJECT FEASIBILITY STUDIES.

       (a) In General.--On a request described in subsection (b), 
     the Secretary shall conduct a

[[Page 12418]]

     feasibility study of a project to implement a strategy or 
     project identified under section 222 as having the potential 
     to--
       (1) significantly reduce the dependence of an insular area 
     on imported oil; or
       (2) provide needed distributed generation to an insular 
     area.
       (b) Request.--The Secretary shall conduct a feasibility 
     study under subsection (a) on--
       (1) the request of an electric utility located in an 
     insular area that commits to fund at least 10 percent of the 
     cost of the study; and
       (2) if the electric utility is located in the Federated 
     States of Micronesia, the Republic of the Marshall Islands, 
     or the Republic of Palau, written support for that request by 
     the President or the Ambassador of the affected freely 
     associated state.
       (c) Consultation.--The Secretary shall consult with 
     regional utility organizations in--
       (1) conducting feasibility studies under subsection (a); 
     and
       (2) determining the feasibility of potential projects.
       (d) Feasibility.--For the purpose of a feasibility study 
     under subsection (a), a project shall be determined to be 
     feasible if the project would significantly reduce the 
     dependence of an insular area on imported fossil fuels, or 
     provide needed distributed generation to an insular area, at 
     a reasonable cost.

     SEC. 224. IMPLEMENTATION.

       (a) In General.--On a determination by the Secretary (in 
     consultation with the Secretary of the Interior) that a 
     project is feasible under section 223 and a commitment by an 
     electric utility to operate and maintain the project, the 
     Secretary may provide such technical and financial assistance 
     as the Secretary determines is appropriate for the 
     implementation of the project.
       (b) Regional Utility Organizations.--In providing 
     assistance under subsection (a), the Secretary shall consider 
     providing the assistance through regional utility 
     organizations.

     SEC. 225. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary--
       (1) $500,000 for the completion of the assessment under 
     section 222;
       (2) $500,000 for each fiscal year for project feasibility 
     studies under section 223; and
       (3) $5,000,000 for each fiscal year for project 
     implementation under section 224.
       (b) Limitation of Funds Received by Insular Areas.--No 
     insular area may receive, during any 3-year period, more than 
     20 percent of the total funds made available during that 3-
     year period under paragraphs (2) and (3) of subsection (a) 
     unless the Secretary determines that providing funding in 
     excess of that percentage best advances existing 
     opportunities to meet the objectives of this subtitle.

                       Subtitle C--Biomass Energy

     SEC. 231. DEFINITIONS.

       In this subtitle:
       (1) Biomass.--The term ``biomass'' means nonmerchantable 
     material from, or precommercial thinnings of, trees and woody 
     plants produced from treatments--
       (A) to reduce hazardous fuels;
       (B) to reduce or contain disease or insect infestations; or
       (C) to restore forest health.
       (2) Eligible community.--The term ``eligible community'' 
     means an Indian Reservation, or a county, town, township, 
     municipality, or other similar unit of local government with 
     a population of not more than 50,000 individuals that the 
     Secretary determines is located in an area near Federal or 
     Indian land, that is--
       (A) at significant risk of catastrophic wildfire, disease, 
     or insect infestation; or
       (B) diseased or infested by insects.
       (3) Eligible operation.--The term ``eligible operation'' 
     means a facility that--
       (A) is located within the boundaries of an eligible 
     community; and
       (B) uses biomass from Federal or Indian land as a raw 
     material to produce electric energy, sensible heat, or 
     transportation fuels.
       (4) Green ton.--The term ``green ton'' means 2,000 pounds 
     of biomass that has not been mechanically or artificially 
     dried.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).
       (6) Person.--The term ``person'' includes--
       (A) an individual;
       (B) an eligible community;
       (C) an Indian tribe;
       (D) a small business or a corporation that is incorporated 
     in the United States; and
       (E) a nonprofit organization.
       (7) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Agriculture, with respect to land 
     within the National Forest System; or
       (B) the Secretary of the Interior, with respect to Federal 
     land under the jurisdiction of the Secretary of the Interior 
     and Indian land.

     SEC. 232. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

       (a) In General.--The Secretary may make grants to any 
     person that owns or operates an eligible operation to offset 
     the costs incurred to purchase biomass for use by the 
     eligible operation.
       (b) Priority.--In making grants under subsection (a), the 
     Secretary shall give priority to eligible operations that use 
     biomass from the highest risk areas, as determined by the 
     Secretary.
       (c) Grant Amount.--A grant provided under this section may 
     not exceed $20 per green ton of biomass delivered.
       (d) Monitoring of Grant Recipient Activities.--
       (1) In general.--As a condition of a grant under this 
     section, the grant recipient shall keep such records as the 
     Secretary may require to fully and correctly disclose the use 
     of the grant funds and all transactions involved in the 
     purchase of biomass.
       (2) Access.--On notice by the Secretary, the grant 
     recipient shall provide the Secretary reasonable access to 
     examine the inventory and records of the eligible operation.
       (e) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section for each of fiscal years 2006 through 
     2010--
       (A) $12,500,000 to the Secretary of Agriculture; and
       (B) $12,500,000 to the Secretary of the Interior.
       (2) Availability.--Amounts made available under paragraph 
     (1) shall remain available until expended.

     SEC. 233. IMPROVED BIOMASS UTILIZATION PROGRAM.

       (a) In General.--The Secretary may provide grants to 
     persons in eligible communities to offset the costs of 
     developing or researching proposals to improve the use of 
     biomass or add value to biomass utilization.
       (b) Selection.--Grant recipients shall be selected based on 
     the potential of a proposal to--
       (1) develop affordable thermal or electric energy resources 
     for the benefit of an eligible community;
       (2) provide opportunities for the creation or expansion of 
     small business concerns within an eligible community;
       (3) create new job opportunities within an eligible 
     community;
       (4) improve efficiency or develop cleaner technologies for 
     biomass utilization; and
       (5) reduce the hazardous fuel from the highest risk areas.
       (c) Limitation.--No grant provided under this section shall 
     exceed $500,000.
       (d) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section for each of fiscal years 2006 through 
     2010--
       (A) $12,500,000 to the Secretary of Agriculture; and
       (B) $12,500,000 to the Secretary of the Interior.
       (2) Availability.--Amounts made available under paragraph 
     (1) shall remain available until expended.

     SEC. 234. REPORT.

       Not later than 3 years after the date of enactment of this 
     Act, the Secretary of Agriculture and the Secretary of the 
     Interior shall jointly submit to Congress a report that 
     describes the interim results of the programs carried out 
     under sections 232 and 233.

                     Subtitle D--Geothermal Energy

     SEC. 241. COMPETITIVE LEASE SALE REQUIREMENTS.

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

     ``SEC. 4. LEASING PROCEDURES.

       ``(a) Nominations.--The Secretary shall accept nominations 
     of land to be leased at any time from qualified companies and 
     individuals under this Act.
       ``(b) Competitive Lease Sale Required.--
       ``(1) In general.--Except as otherwise specifically 
     provided by this Act, all land to be leased that is not 
     subject to leasing under subsection (c) shall be leased as 
     provided in this subsection to the highest responsible 
     qualified bidder, as determined by the Secretary.
       ``(2) Competitive lease sales.--The Secretary shall hold a 
     competitive lease sale at least once every 2 years for land 
     in a State that has nominations pending under subsection (a) 
     if the land is otherwise available for leasing.
       ``(c) Noncompetitive Leasing.--The Secretary shall make 
     available for a period of 2 years for noncompetitive leasing 
     any tract for which a competitive lease sale is held, but for 
     which the Secretary does not receive any bids in a 
     competitive lease sale.
       ``(d) Pending Lease Applications.--
       ``(1) In general.--It shall be a priority for the 
     Secretary, and for the Secretary of Agriculture with respect 
     to National Forest Systems land, to ensure timely completion 
     of administrative actions necessary to process applications 
     for geothermal leasing pending on May 19, 2005.
       ``(2) Administration.--An application described in 
     paragraph (1) and any lease issued pursuant to the 
     application--
       ``(A) except as provided in subparagraph (B), shall be 
     subject to this section as in effect on the day before the 
     date of enactment of this paragraph; or
       ``(B) at the election of the applicant, shall be subject to 
     this section as in effect on the effective date of this 
     paragraph.''.

     SEC. 242. DIRECT USE.

       (a) Fees for Direct Use.--Section 5 of the Geothermal Steam 
     Act of 1970 (30 U.S.C. 1004) is amended--

[[Page 12419]]

       (1) in subsection (c), by redesignating paragraphs (1) and 
     (2) as subparagraphs (A) and (B), respectively;
       (2) by redesignating subsections (a) through (d) as 
     paragraphs (1) through (4), respectively;
       (3) by inserting ``(a) In General.--'' after ``Sec. 5.''; 
     and
       (4) by adding at the end the following:
       ``(d) Direct Use.--
       ``(1) In general.--Notwithstanding subsection (a)(1), the 
     Secretary shall establish a schedule of fees, in lieu of 
     royalties for geothermal resources, that a lessee or its 
     affiliate--
       ``(A) uses for a purpose other than the commercial 
     generation of electricity; and
       ``(B) does not sell.
       ``(2) Schedule of fees.--The schedule of fees--
       ``(A) may be based on the quantity or thermal content, or 
     both, of geothermal resources used or any other basis that 
     the Secretary finds appropriate under the circumstances; and
       ``(B) shall ensure a fair return to the United States for 
     use of the resource.
       ``(3) State or local governments.--If a State or local 
     government is the lessee and uses geothermal resources 
     without sale and for purposes other than commercial 
     generation of electricity, the Secretary shall charge only a 
     nominal fee for use of the resource.''.
       (b) Leasing for Direct Use.--Section 4 of the Geothermal 
     Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 
     241) is amended adding at the end the following:
       ``(e) Leasing for Direct Use of Geothermal Resources.--
     Notwithstanding subsection (b), the Secretary may identify 
     areas in which the land to be leased under this Act 
     exclusively for direct use of geothermal resources without 
     sale for purposes other than commercial generation of 
     electricity may be leased to any qualified applicant that 
     first applies for such a lease under regulations issued by 
     the Secretary, if the Secretary--
       ``(1) publishes a notice of the land proposed for leasing 
     not later than 120 days before the date of the issuance of 
     the lease;
       ``(2) does not receive during the 120-day period beginning 
     on the date of the publication any nomination to include the 
     land concerned in the next competitive lease sale; and
       ``(3) determines there is no competitive interest in the 
     land to be leased.
       ``(f) Area Subject to Lease for Direct Use.--
       ``(1) In general.--Subject to paragraph (2), a geothermal 
     lease for the direct use of geothermal resources shall cover 
     not more than the quantity of acreage determined by the 
     Secretary to be reasonably necessary for the proposed use.
       ``(2) Limitations.--The quantity of acreage covered by the 
     lease shall not exceed the limitations established under 
     section 7.''.

     SEC. 243. ROYALTIES.

       (a) Calculation of Royalties.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     issue a final regulation that provides a simplified 
     methodology for calculating the royalty under subsection 
     (a)(1) of section 5 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1004) (as amended by section 242(a)).
       (2) Considerations.--In issuing the final regulation under 
     paragraph (1), the Secretary shall--
       (A) consider the use of a method based on gross proceeds 
     from the sale of electricity; and
       (B) ensure that the final regulation issued under paragraph 
     (1) results in the same level of royalty revenues over a 10-
     year period as the regulation in effect on the day before the 
     date of enactment of this Act.
       (b) Royalty Under Existing Leases.--
       (1) In general.--Any lessee under a lease issued under the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before 
     the date of enactment of this Act may, within the time period 
     specified in paragraph (2), submit to the Secretary of the 
     Interior a request to modify the terms of the lease relating 
     to payment of royalties to comply with--
       (A) in the case of a lease that meets the requirements of 
     subsection (b) of section 5 of the Geothermal Steam Act of 
     1970 (30 U.S.C. 1004) (as amended by section 242(a)), the 
     schedule of fees established under that section; and
       (B) in the case of any other lease, the methodology 
     established under subsection (a).
       (2) Timing.--A request for a modification under paragraph 
     (1) shall be submitted to the Secretary by the date that is 
     not later than--
       (A) in the case of a lease for direct use, 18 months after 
     the effective date of the schedule of fees established by the 
     Secretary under section 5 of the Geothermal Steam Act of 1970 
     (30 U.S.C. 1004); or
       (B) in the case of any other lease, 18 months after the 
     effective date of the final regulation issued under 
     subsection (a).
       (3) Application of modification.--If the lessee requests 
     modification of a lease under paragraph (1)--
       (A) the Secretary shall modify the lease to comply with--
       (i) in the case of a lease for direct use, the schedule of 
     fees established by the Secretary under section 5 of the 
     Geothermal Steam Act of 1970 (30 U.S.C. 1004); or
       (ii) in the case of any other lease, the methodology 
     established under subsection (a); and
       (B) the modification shall apply to any use of geothermal 
     steam and any associated geothermal resources to which 
     subsection (a) applies that occurs after the date of the 
     modification.
       (4) Consultation.--The Secretary shall consult with the 
     State and local governments affected by any proposed changes 
     in lease royalty terms under this subsection.

     SEC. 244. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LAND.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this section, the Secretary of the Interior and 
     the Secretary of Agriculture shall enter into, and submit to 
     Congress, a memorandum of understanding in accordance with 
     this section regarding leasing and permitting for geothermal 
     development of public land and National Forest System land 
     under the respective jurisdictions of the Secretaries.
       (b) Lease and Permit Applications.--The memorandum of 
     understanding shall--
       (1) identify areas with geothermal potential on land 
     included in the National Forest System and, if necessary, 
     require review of management plans to consider leasing under 
     the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as 
     a land use; and
       (2) establish an administrative procedure for processing 
     geothermal lease applications, including lines of authority, 
     steps in application processing, and time limits for 
     application processing.
       (c) Data Retrieval System.--The memorandum of understanding 
     shall establish a joint data retrieval system that--
       (1) is capable of tracking lease and permit applications; 
     and
       (2) provides to the applicant information as to the status 
     of an application within the Departments of the Interior and 
     Agriculture, including an estimate of the time required for 
     administrative action.

     SEC. 245. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.

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

     SEC. 246. COOPERATIVE OR UNIT PLANS.

       Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1017) is amended to read as follows:

     ``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.

       ``(a) Adoption of Units by Lessees.--
       ``(1) In general.--For the purpose of more properly 
     conserving the natural resources of any geothermal reservoir, 
     field, or like area, or any part thereof (whether or not any 
     part of the geothermal reservoir, field, or like area, is 
     subject to any cooperative plan of development or operation 
     (referred to in this section as a `unit agreement')), lessees 
     thereof and their representatives may unite with each other, 
     or jointly or separately with others, in collectively 
     adopting and operating under a unit agreement for the 
     reservoir, field, or like area, or any part thereof, 
     including direct use resources, if determined and certified 
     by the Secretary to be necessary or advisable in the public 
     interest.
       ``(2) Majority interest of single leases.--A majority 
     interest of owners of any single lease shall have the 
     authority to commit the lease to a unit agreement.
       ``(3) Initiative of secretary.--The Secretary may also 
     initiate the formation of a unit agreement, or require an 
     existing Federal lease to commit to a unit agreement, if in 
     the public interest.
       ``(4) Modification of lease requirements by secretary.--
       ``(A) In general.--The Secretary may, in the discretion of 
     the Secretary and with the consent of the holders of leases 
     involved, establish, alter, change, or revoke rates of 
     operations (including drilling, operations, production, and 
     other requirements) of the leases and make conditions with 
     respect to the leases, with the consent of the lessees, in 
     connection with the creation and operation of any such unit 
     agreement as the Secretary may consider necessary or 
     advisable to secure the protection of the public interest.
       ``(B) Unlike terms or rates.--Leases with unlike lease 
     terms or royalty rates shall not be required to be modified 
     to be in the same unit.
       ``(b) Requirement of Plans Under New Leases.--The Secretary 
     may--
       ``(1) provide that geothermal leases issued under this Act 
     shall contain a provision requiring the lessee to operate 
     under a unit agreement; and
       ``(2) prescribe the unit agreement under which the lessee 
     shall operate, which shall adequately protect the rights of 
     all parties in interest, including the United States.
       ``(c) Modification of Rate of Prospecting, Development, and 
     Production.--The Secretary may require that any unit 
     agreement authorized by this section

[[Page 12420]]

     that applies to land owned by the United States contain a 
     provision under which authority is vested in the Secretary, 
     or any person, committee, or State or Federal officer or 
     agency as may be designated in the unit agreement to alter or 
     modify, from time to time, the rate of prospecting and 
     development and the quantity and rate of production under the 
     unit agreement.
       ``(d) Exclusion From Determination of Holding or Control.--
     Any land that is subject to a unit agreement approved or 
     prescribed by the Secretary under this section shall not be 
     considered in determining holdings or control under section 
     7.
       ``(e) Pooling of Certain Land.--If separate tracts of land 
     cannot be independently developed and operated to use 
     geothermal steam and associated geothermal resources pursuant 
     to any section of this Act--
       ``(1) the land, or a portion of the land, may be pooled 
     with other land, whether or not owned by the United States, 
     for purposes of development and operation under a 
     communitization agreement providing for an apportionment of 
     production or royalties among the separate tracts of land 
     comprising the production unit, if the pooling is determined 
     by the Secretary to be in the public interest; and
       ``(2) operation or production pursuant to the 
     communitization agreement shall be treated as operation or 
     production with respect to each tract of land that is subject 
     to the communitization agreement.
       ``(f) Unit Agreement Review.--
       ``(1) In general.--Not later than 5 years after the date of 
     approval of any unit agreement and at least every 5 years 
     thereafter, the Secretary shall--
       ``(A) review each unit agreement; and
       ``(B) after notice and opportunity for comment, eliminate 
     from inclusion in the unit agreement any land that the 
     Secretary determines is not reasonably necessary for unit 
     operations under the unit agreement.
       ``(2) Basis for elimination.--The elimination shall--
       ``(A) be based on scientific evidence; and
       ``(B) occur only if the elimination is determined by the 
     Secretary to be for the purpose of conserving and properly 
     managing the geothermal resource.
       ``(3) Extension.--Any land eliminated under this subsection 
     shall be eligible for an extension under section 6(g) if the 
     land meets the requirements for the extension.
       ``(g) Drilling or Development Contracts.--
       ``(1) In general.--The Secretary may, on such conditions as 
     the Secretary may prescribe, approve drilling or development 
     contracts made by 1 or more lessees of geothermal leases, 
     with 1 or more persons, associations, or corporations if, in 
     the discretion of the Secretary, the conservation of natural 
     resources or the public convenience or necessity may require 
     or the interests of the United States may be best served by 
     the approval.
       ``(2) Holdings or control.--Each lease operated under an 
     approved drilling or development contract, and interest under 
     the contract, shall be excepted in determining holdings or 
     control under section 7.
       ``(h) Coordination With State Governments.--The Secretary 
     shall coordinate unitization and pooling activities with 
     appropriate State agencies.''.

     SEC. 247. ROYALTY ON BYPRODUCTS.

       Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1004) (as amended by section 242(a)) is amended in subsection 
     (a) by striking paragraph (2) and inserting the following:
       ``(2) a royalty on any byproduct that is a mineral 
     specified in the first section of the Mineral Leasing Act (30 
     U.S.C. 181), and that is derived from production under the 
     lease, at the rate of the royalty that applies under that Act 
     to production of the mineral under a lease under that Act;''.

     SEC. 248. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.

       Section 6(i) of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1005(i)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) The Secretary shall, by regulation, establish 
     payments under this subsection at levels that ensure the 
     diligent development of the lease.''.

     SEC. 249. ANNUAL RENTAL.

       (a) Annual Rental Rate.--Section 5 of the Geothermal Steam 
     Act of 1970 (30 U.S.C. 1004) (as amended by section 242(a)) 
     is amended in subsection (a) by striking paragraph (3) and 
     inserting the following:
       ``(3) payment in advance of an annual rental of not less 
     than--
       ``(A) for each of the first through tenth years of the 
     lease--
       ``(i) in the case of a lease awarded in a noncompetitive 
     lease sale, $1 per acre or fraction thereof; or
       ``(ii) in the case of a lease awarded in a competitive 
     lease sale, $2 per acre or fraction thereof for the first 
     year and $3 per acre or fraction thereof for each of the 
     second through 10th years; and
       ``(B) for each year after the 10th year of the lease, $5 
     per acre or fraction thereof;''.
       (b) Termination of Lease for Failure to Pay Rental.--
     Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1004) (as amended by section 242(a)) is amended by adding at 
     the end the following:
       ``(c) Termination of Lease for Failure to Pay Rental.--
       ``(1) In general.--The Secretary shall terminate any lease 
     with respect to which rental is not paid in accordance with 
     this Act and the terms of the lease under which the rental is 
     required, on the expiration of the 45-day period beginning on 
     the date of the failure to pay the rental.
       ``(2) Notification.--The Secretary shall promptly notify a 
     lessee that has not paid rental required under the lease that 
     the lease will be terminated at the end of the period 
     referred to in paragraph (1).
       ``(3) Reinstatement.--A lease that would otherwise 
     terminate under paragraph (1) shall not terminate under that 
     paragraph if the lessee pays to the Secretary, before the end 
     of the period referred to in paragraph (1), the amount of 
     rental due plus a late fee equal to 10 percent of the 
     amount.''.

     SEC. 250. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF 
                   PRODUCTION.

       Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
     1004) (as amended by section 249(b)) is amended by adding at 
     the end the following:
       ``(d) Advanced Royalties Required for Cessation of 
     Production.--
       ``(1) In general.--Subject to paragraphs (2) and (3), if, 
     at any time after commercial production under a lease is 
     achieved, production ceases for any reason, the lease shall 
     remain in full force and effect for a period of not more than 
     an aggregate number of 10 years beginning on the date 
     production ceases, if, during the period in which production 
     is ceased, the lessee pays royalties in advance at the 
     monthly average rate at which the royalty was paid during the 
     period of production.
       ``(2) Reduction.--The amount of any production royalty paid 
     for any year shall be reduced (but not below 0) by the amount 
     of any advanced royalties paid under the lease to the extent 
     that the advance royalties have not been used to reduce 
     production royalties for a prior year.
       ``(3) Exceptions.--Paragraph (1) shall not apply if the 
     cessation in production is required or otherwise caused by--
       ``(A) the Secretary;
       ``(B) the Secretary of the Air Force;
       ``(C) the Secretary of the Army;
       ``(D) the Secretary of the Navy;
       ``(E) a State or a political subdivision of a State; or
       ``(F) a force majeure.''.

     SEC. 251. LEASING AND PERMITTING ON FEDERAL LAND WITHDRAWN 
                   FOR MILITARY PURPOSES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of the Interior and the 
     Secretary of Defense, in consultation with the Secretary of 
     the Air Force, the Secretary of the Army, the Secretary of 
     the Navy, interested States, political subdivisions of 
     States, and representatives of the geothermal industry, and 
     other interested persons, shall submit to the appropriate 
     committees of Congress a joint report on leasing and 
     permitting activities for geothermal energy on Federal land 
     withdrawn for military purposes.
       (b) Requirements.--The report required under subsection (a) 
     shall include--
       (1) a description of the military geothermal program, 
     including a description of--
       (A) any differences between the military geothermal program 
     and the nonmilitary geothermal program, including required 
     security procedures and operational considerations; and
       (B) the reasons the differences described in subparagraph 
     (A) are significant;
       (2) with respect to the military geothermal program, a 
     description of--
       (A) revenues or energy provided to the Department of 
     Defense and facilities of the Department Defense; and
       (B) royalty structures, as applicable;
       (3) any revenue sharing with States and political 
     subdivisions of States and other benefits from--
       (A) the implementation of the Geothermal Steam Act of 1970 
     (30 U.S.C 1001 et seq.) and other applicable Federal law by 
     the Secretary of the Interior; and
       (B) the administration of geothermal leasing under section 
     2689 of title 10, United States Code, by the Secretary of 
     Defense;
       (4) if appropriate--
       (A) a description of the current methods and procedures 
     used to ensure interagency coordination, as needed, in 
     developing renewable energy sources on Federal land withdrawn 
     for military purposes; and
       (B) an identification of any new procedures that would 
     improve interagency coordination to ensure efficient 
     processing and administration of leases or contracts for 
     geothermal energy on Federal land withdrawn for military 
     purposes, consistent with the defense purposes of the 
     withdrawals; and
       (5) recommendations for any legislative or administrative 
     actions that would increase geothermal production, 
     including--
       (A) a common royalty structure;
       (B) leasing procedures; and
       (C) other changes that--
       (i) increase production;
       (ii) offset military operation costs; or
       (iii) enhance the ability of Federal agencies to develop 
     geothermal resources.
       (c) Effect.--Nothing in this section affects the legal 
     status of geothermal leasing and

[[Page 12421]]

     development conducted by the Department of the Interior and 
     the Department of Defense.

     SEC. 252. TECHNICAL AMENDMENTS.

       (a) The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et 
     seq.) is amended by striking ``geothermal steam and 
     associated geothermal resources'' each place it appears and 
     inserting ``geothermal resources''.
       (b) The first section of the Geothermal Steam Act of 1970 
     (30 U.S.C. 1001 note) is amended by striking ``That this'' 
     and inserting the following:

     ``SECTION 1. SHORT TITLE.

       ``This''.
       (c) Section 2 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1001) is amended--
       (1) by striking ``Sec. 2. As'' and inserting the following:

     ``SEC. 2. DEFINITIONS.

       ``As''; and
       (2) by striking subsection (e) and inserting the following:
       ``(e) `direct use' means use of geothermal resources for 
     commercial, residential, agricultural, public facilities, or 
     other energy needs other than the commercial production of 
     electricity; and''.
       (d) Section 3 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1002) is amended by striking ``Sec. 3. Subject'' and 
     inserting the following:

     ``SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING.

       ``Subject''.
       (e) Section 5 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1004) is amended by striking ``Sec. 5. Geothermal'' 
     and inserting the following:

     ``SEC. 5. RENTS AND ROYALTIES.

       ``Geothermal''.
       (f) Section 6 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1005) is amended by striking ``Sec. 6. (a) The'' and 
     inserting the following:

     ``SEC. 6. DURATION OF LEASES.

       ``(a) The''.
       (g) Section 7 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1006) is amended by striking ``Sec. 7. A geothermal'' 
     and inserting the following:

     ``SEC. 7. ACREAGE OF GEOTHERMAL LEASE.

       ``A geothermal''.
       (h) Section 8 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1007) is amended by striking ``Sec. 8. (a) The'' and 
     inserting the following:

     ``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

       ``(a) The''.
       (i) Section 9 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1008) is amended by striking ``Sec. 9. If'' and 
     inserting the following:

     ``SEC. 9. BYPRODUCTS.

       ``If''.
       (j) Section 10 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1009) is amended by striking ``Sec. 10. The'' and 
     inserting the following:

     ``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

       ``The''.
       (k) Section 11 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1010) is amended by striking ``Sec. 11. The'' and 
     inserting the following:

     ``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

       ``The''.
       (l) Section 12 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1011) is amended by striking ``Sec. 12. Leases'' and 
     inserting the following:

     ``SEC. 12. TERMINATION OF LEASES.

       ``Leases''.
       (m) Section 13 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1012) is amended by striking ``Sec. 13. The'' and 
     inserting the following:

     ``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR 
                   ROYALTY.

       ``The''.
       (n) Section 14 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1013) is amended by striking ``Sec. 14. Subject'' and 
     inserting the following:

     ``SEC. 14. SURFACE LAND USE.

       ``Subject''.
       (o) Section 15 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1014) is amended by striking ``Sec. 15. (a) 
     Geothermal'' and inserting the following:

     ``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

       ``(a) Geothermal''.
       (p) Section 16 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1015) is amended by striking ``Sec. 16. Leases'' and 
     inserting the following:

     ``SEC. 16. REQUIREMENT FOR LESSEES.

       ``Leases''.
       (q) Section 17 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1016) is amended by striking ``Sec. 17. 
     Administration'' and inserting the following:

     ``SEC. 17. ADMINISTRATION.

       ``Administration''.
       (r) Section 19 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1018) is amended by striking ``Sec. 19. Upon'' and 
     inserting the following:

     ``SEC. 19. DATA FROM FEDERAL AGENCIES.

       ``Upon''.
       (s) Section 20 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1019) is amended by striking ``Sec. 20. Subject'' and 
     inserting the following:

     ``SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM SALES, 
                   BONUSES, ROYALTIES, AND RENTALS.

       ``Subject''.
       (t) Section 21 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1020) is amended by striking ``Sec. 21.'' and all that 
     follows through ``(b) Geothermal'' and inserting the 
     following:

     ``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF 
                   MINERAL RIGHTS.

       ``Geothermal''.
       (u) Section 22 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1021) is amended by striking ``Sec. 22. Nothing'' and 
     inserting the following:

     ``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

       ``Nothing''.
       (v) Section 23 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1022) is amended by striking ``Sec. 23. (a) All'' and 
     inserting the following:

     ``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

       ``(a) All''.
       (w) Section 24 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1023) is amended by striking ``Sec. 24. The'' and 
     inserting the following:

     ``SEC. 24. RULES AND REGULATIONS.

       ``The''.
       (x) Section 25 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1024) is amended by striking ``Sec. 25. As'' and 
     inserting the following:

     ``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN 
                   OTHER LAWS.

       ``As''.
       (y) Section 26 of the Geothermal Steam Act of 1970 is 
     amended by striking ``Sec. 26. The'' and inserting the 
     following:

     ``SEC. 26. AMENDMENT.

       ``The''.
       (z) Section 27 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1025) is amended by striking ``Sec. 27. The'' and 
     inserting the following:

     ``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

       ``The''.
       (aa) Section 28 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1026) is amended by striking ``Sec. 28. (a)(1) The'' 
     and inserting the following:

     ``SEC. 28. SIGNIFICANT THERMAL FEATURES.

       ``(a)(1) The''.
       (bb) Section 29 of the Geothermal Steam Act of 1970 (30 
     U.S.C. 1027) is amended by striking ``Sec. 29. The'' and 
     inserting the following:

     ``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

       ``The''.

                       Subtitle E--Hydroelectric

     SEC. 261. ALTERNATIVE CONDITIONS AND FISHWAYS.

       (a) Federal Reservations.--Section 4(e) of the Federal 
     Power Act (16 U.S.C. 797(e)) is amended by inserting after 
     ``adequate protection and utilization of such reservation.'' 
     at the end of the first proviso the following: ``The license 
     applicant and any party to the proceeding shall be entitled 
     to a determination on the record, after opportunity for an 
     agency trial-type hearing of no more than 90 days, on any 
     disputed issues of material fact with respect to such 
     conditions. All disputed issues of material fact raised by 
     any party shall be determined in a single trial-type hearing 
     to be conducted within a time frame established by the 
     Commission for each license proceeding. Within 90 days of the 
     date of enactment of this Act, the Secretaries of the 
     Interior, Commerce, and Agriculture shall establish jointly, 
     by rule, the procedures for such expedited trial-type 
     hearing, including the opportunity to undertake discovery and 
     cross-examine witnesses, in consultation with the Federal 
     Energy Regulatory Commission.''.
       (b) Fishways.--Section 18 of the Federal Power Act (16 
     U.S.C. 811) is amended by inserting after ``and such fishways 
     as may be prescribed by the Secretary of Commerce.'' the 
     following: ``The license applicant and any party to the 
     proceeding shall be entitled to a determination on the 
     record, after opportunity for an agency trial-type hearing of 
     no more than 90 days, on any disputed issues of material fact 
     with respect to such fishways. All disputed issues of 
     material fact raised by any party shall be determined in a 
     single trial-type hearing to be conducted within a time frame 
     established by the Commission for each license proceeding. 
     Within 90 days of the date of enactment of this Act, the 
     Secretaries of the Interior, Commerce, and Agriculture shall 
     establish jointly, by rule, the procedures for such expedited 
     trial-type hearing, including the opportunity to undertake 
     discovery and cross-examine witnesses, in consultation with 
     the Federal Energy Regulatory Commission.''.
       (c) Alternative Conditions and Prescriptions.--Part I of 
     the Federal Power Act (16 U.S.C. 791a et seq.) is amended by 
     adding the following new section at the end thereof:

     ``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

       ``(a) Alternative Conditions.--(1) Whenever any person 
     applies for a license for any project works within any 
     reservation of the United States, and the Secretary of the 
     department under whose supervision such reservation falls 
     (referred to in this subsection as the `Secretary') deems a 
     condition to such license to be necessary under the first 
     proviso of section 4(e), the license applicant or

[[Page 12422]]

     any other party to the license proceeding may propose an 
     alternative condition.
       ``(2) Notwithstanding the first proviso of section 4(e), 
     the Secretary shall accept the proposed alternative condition 
     referred to in paragraph (1), and the Commission shall 
     include in the license such alternative condition, if the 
     Secretary determines, based on substantial evidence provided 
     by the license applicant, any other party to the proceeding, 
     or otherwise available to the Secretary, that such 
     alternative condition--
       ``(A) provides for the adequate protection and utilization 
     of the reservation; and
       ``(B) the Secretary concurs with the license applicant's 
     judgment that the alternative condition will either--
       ``(i) cost significantly less to implement; or
       ``(ii) result in improved operation of the project works 
     for electricity production, as compared to the condition 
     initially deemed necessary by the Secretary.
       ``(3) The Secretary concerned shall submit into the public 
     record of the Commission proceeding with any condition under 
     section 4(e) or alternative condition it accepts under this 
     section, a written statement explaining the basis for such 
     condition, and reason for not accepting any alternative 
     condition under this section. The written statement must 
     demonstrate that the Secretary gave equal consideration to 
     the effects of the condition adopted and alternatives not 
     accepted on energy supply, distribution, cost, and use; flood 
     control; navigation; water supply; and air quality (in 
     addition to the preservation of other aspects of 
     environmental quality); based on such information as may be 
     available to the Secretary, including information voluntarily 
     provided in a timely manner by the applicant and others. The 
     Secretary shall also submit, together with the aforementioned 
     written statement, all studies, data, and other factual 
     information available to the Secretary and relevant to the 
     Secretary's decision.
       ``(4) If the Secretary does not accept an applicant's 
     alternative condition under this section, and the Commission 
     finds that the Secretary's condition would be inconsistent 
     with the purposes of this part, or other applicable law, the 
     Commission may refer the dispute to the Commission's Dispute 
     Resolution Service. The Dispute Resolution Service shall 
     consult with the Secretary and the Commission and issue a 
     non-binding advisory within 90 days. The Secretary may accept 
     the Dispute Resolution Service advisory unless the Secretary 
     finds that the recommendation will not adequately protect the 
     reservation. The Secretary shall submit the advisory and the 
     Secretary's final written determination into the record of 
     the Commission's proceeding.
       ``(b) Alternative Prescriptions.--(1) Whenever the 
     Secretary of the Interior or the Secretary of Commerce 
     prescribes a fishway under section 18, the license applicant 
     or any other party to the license proceeding may propose an 
     alternative to such prescription to construct, maintain, or 
     operate a fishway.
       ``(2) Notwithstanding section 18, the Secretary of the 
     Interior or the Secretary of Commerce, as appropriate, shall 
     accept and prescribe, and the Commission shall require, the 
     proposed alternative referred to in paragraph (1), if the 
     Secretary of the appropriate department determines, based on 
     substantial evidence provided by the license applicant, any 
     other party to the proceeding, or otherwise available to the 
     Secretary, that such alternative--
       ``(A) will be no less protective than the fishway initially 
     prescribed by the Secretary; and
       ``(B) the Secretary concurs with the license applicant's 
     judgment that the alternative prescription will either--
       ``(i) cost significantly less to implement; or
       ``(ii) result in improved operation of the project works 
     for electricity production, as compared to the fishway 
     initially deemed necessary by the Secretary.
       ``(3) The Secretary concerned shall submit into the public 
     record of the Commission proceeding with any prescription 
     under section 18 or alternative prescription it accepts under 
     this section, a written statement explaining the basis for 
     such prescription, and reason for not accepting any 
     alternative prescription under this section. The written 
     statement must demonstrate that the Secretary gave equal 
     consideration to the effects of the prescription adopted and 
     alternatives not accepted on energy supply, distribution, 
     cost, and use; flood control; navigation; water supply; and 
     air quality (in addition to the preservation of other aspects 
     of environmental quality); based on such information as may 
     be available to the Secretary, including information 
     voluntarily provided in a timely manner by the applicant and 
     others. The Secretary shall also submit, together with the 
     aforementioned written statement, all studies, data, and 
     other factual information available to the Secretary and 
     relevant to the Secretary's decision.
       ``(4) If the Secretary concerned does not accept an 
     applicant's alternative prescription under this section, and 
     the Commission finds that the Secretary's prescription would 
     be inconsistent with the purposes of this part, or other 
     applicable law, the Commission may refer the dispute to the 
     Commission's Dispute Resolution Service. The Dispute 
     Resolution Service shall consult with the Secretary and the 
     Commission and issue a non-binding advisory within 90 days. 
     The Secretary may accept the Dispute Resolution Service 
     advisory unless the Secretary finds that the recommendation 
     will not adequately protect the fish resources. The Secretary 
     shall submit the advisory and the Secretary's final written 
     determination into the record of the Commission's 
     proceeding.''.

     SEC. 262. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 
                   PROJECTS.

       Section 32 of the Federal Power Act (16 U.S.C. 823c) is 
     amended--
       (1) in subsection (a)(3)(C), by inserting ``except as 
     provided in subsection (j),'' before ``conditions''; and
       (2) by adding at the end the following:
       ``(j) Fish and Wildlife.--If the State of Alaska determines 
     that a recommendation under subsection (a)(3)(C) is 
     inconsistent with paragraphs (1) and (2) of subsection (a), 
     the State of Alaska may decline to adopt all or part of the 
     recommendations in accordance with the procedures established 
     under section 10(j)(2).''.

     SEC. 263. FLINT CREEK HYDROELECTRIC PROJECT.

       (a) Extension of Time.--Notwithstanding the time period 
     specified in section 5 of the Federal Power Act (16 U.S.C. 
     798) that would otherwise apply to the Federal Energy 
     Regulatory Commission (referred to in this section as the 
     ``Commission'') project numbered 12107, the Commission 
     shall--
       (1) if the preliminary permit is in effect on the date of 
     enactment of this Act, extend the preliminary permit for a 
     period of 3 years beginning on the date on which the 
     preliminary permit expires; or
       (2) if the preliminary permit expired before the date of 
     enactment of this Act, on request of the permittee, reinstate 
     the preliminary permit for an additional 3-year period 
     beginning on the date of enactment of this Act.
       (b) Limitation on Certain Fees.--Notwithstanding section 
     10(e)(1) of the Federal Power Act (16 U.S.C. 803(e)(1)) or 
     any other provision of Federal law providing for the payment 
     to the United States of charges for the use of Federal land 
     for the purposes of operating and maintaining a hydroelectric 
     development licensed by the Commission, any political 
     subdivision of the State of Montana that holds a Commission 
     license for the Commission project numbered 12107 in Granite 
     and Deer Lodge Counties, Montana, shall be required to pay to 
     the United States for the use of that land for each year 
     during which the political subdivision continues to hold the 
     license for the project, the lesser of--
       (1) $25,000; or
       (2) such annual charge as the Commission or any other 
     department or agency of the Federal Government may assess.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

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

       (a) Amendment to Title I of the Energy Policy and 
     Conservation Act.--Title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6212 et seq.) is amended--
       (1) by striking section 166 (42 U.S.C. 6246) and inserting 
     the following:


                   ``authorization of appropriations

       ``Sec. 166. There are authorized to be appropriated to the 
     Secretary such sums as are necessary to carry out this part 
     and part D, to remain available until expended.'';
       (2) by striking section 186 (42 U.S.C. 6250e); and
       (3) by striking part E (42 U.S.C. 6251).
       (b) Amendment to Title II of the Energy Policy and 
     Conservation Act.--Title II of the Energy Policy and 
     Conservation Act (42 U.S.C. 6271 et seq.) is amended--
       (1) by inserting before section 273 (42 U.S.C. 6283) the 
     following:

          ``Part C--Summer Fill and Fuel Budgeting Programs'';

       (2) by striking section 273(e) (42 U.S.C. 6283(e)); and
       (3) by striking part D (42 U.S.C. 6285).
       (c) Technical Amendments.--The table of contents for the 
     Energy Policy and Conservation Act is amended--
       (1) by inserting after the items relating to part C of 
     title I the following:

              ``Part D--Northeast Home Heating Oil Reserve

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

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

           ``Part C--Summer Fill and Fuel Budgeting Programs

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

     and

       (3) by striking the items relating to part D of title II.
       (d) Amendment to the Energy Policy and Conservation Act.--
     Section 183(b)(1) of the

[[Page 12423]]

     Energy Policy and Conservation Act (42 U.S.C. 6250b(b)(1)) is 
     amended by striking ``by more'' and all that follows through 
     ``mid-October through March'' and inserting ``by more than 60 
     percent over its 5-year rolling average for the months of 
     mid-October through March (considered as a heating season 
     average)''.
       (e) Fill Strategic Petroleum Reserve to Capacity.--The 
     Secretary shall, as expeditiously as practicable, without 
     incurring excessive cost or appreciably affecting the price 
     of gasoline or heating oil to consumers, acquire petroleum in 
     quantities sufficient to fill the Strategic Petroleum Reserve 
     to the 1,000,000,000-barrel capacity authorized under section 
     154(a) of the Energy Policy and Conservation Act (42 U.S.C. 
     6234(a)), in accordance with the sections 159 and 160 of that 
     Act (42 U.S.C. 6239, 6240).

     SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.

       Section 713 of the Energy Act of 2000 (Public Law 106-469; 
     42 U.S.C. 6201 note) is amended by striking ``4'' and 
     inserting ``9''.

                   Subtitle B--Production Incentives

     SEC. 311. DEFINITION OF SECRETARY.

       In this subtitle, the term ``Secretary'' means the 
     Secretary of the Interior.

     SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.

       (a) Applicability of Section.--Notwithstanding any other 
     provision of law, this section applies to all royalty in-kind 
     accepted by the Secretary on or after the date of enactment 
     of this Act under any Federal oil or gas lease or permit 
     under--
       (1) section 36 of the Mineral Leasing Act (30 U.S.C. 192);
       (2) section 27 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1353); or
       (3) any other Federal law governing leasing of Federal land 
     for oil and gas development.
       (b) Terms and Conditions.--All royalty accruing to the 
     United States shall, on the demand of the Secretary, be paid 
     in oil or gas. If the Secretary makes such a demand, the 
     following provisions apply to the payment:
       (1) Satisfaction of royalty obligation.--Delivery by, or on 
     behalf of, the lessee of the royalty amount and quality due 
     under the lease satisfies royalty obligation of the lessee 
     for the amount delivered, except that transportation and 
     processing reimbursements paid to, or deductions claimed by, 
     the lessee shall be subject to review and audit.
       (2) Marketable condition.--
       (A) Definition of marketable condition.--In this paragraph, 
     the term ``in marketable condition'' means sufficiently free 
     from impurities and otherwise in a condition that the royalty 
     production will be accepted by a purchaser under a sales 
     contract typical of the field or area in which the royalty 
     production was produced.
       (B) Requirement.--Royalty production shall be placed in 
     marketable condition by the lessee at no cost to the United 
     States.
       (3) Disposition by the secretary.--The Secretary may--
       (A) sell or otherwise dispose of any royalty production 
     taken in-kind (other than oil or gas transferred under 
     section 27(a)(3) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1353(a)(3)) for not less than the market price; and
       (B) transport or process (or both) any royalty production 
     taken in-kind.
       (4) Retention by the secretary.--The Secretary may, 
     notwithstanding section 3302 of title 31, United States Code, 
     retain and use a portion of the revenues from the sale of oil 
     and gas taken in-kind that otherwise would be deposited to 
     miscellaneous receipts, without regard to fiscal year 
     limitation, or may use oil or gas received as royalty taken 
     in-kind (referred to in this paragraph as ``royalty 
     production'') to pay the cost of--
       (A) transporting the royalty production;
       (B) processing the royalty production;
       (C) disposing of the royalty production; or
       (D) any combination of transporting, processing, and 
     disposing of the royalty production.
       (5) Limitation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary may not use revenues from the sale of oil and 
     gas taken in-kind to pay for personnel, travel, or other 
     administrative costs of the Federal Government.
       (B) Exception.--Notwithstanding subparagraph (A), the 
     Secretary may use a portion of the revenues from royalty in-
     kind sales, without fiscal year limitation, to pay salaries 
     and other administrative costs directly related to the 
     royalty in-kind program.
       (c) Reimbursement of Cost.--If a lessee, pursuant to an 
     agreement with the United States or as provided in the lease, 
     processes the royalty gas or delivers the royalty oil or gas 
     at a point not on or adjacent to the lease area, the 
     Secretary shall--
       (1) reimburse the lessee for the reasonable costs of 
     transportation (not including gathering) from the lease to 
     the point of delivery or for processing costs; or
       (2) allow the lessee to deduct the transportation or 
     processing costs in reporting and paying royalties in-value 
     for other Federal oil and gas leases.
       (d) Benefit to the United States Required.--The Secretary 
     may receive oil or gas royalties in-kind only if the 
     Secretary determines that receiving royalties in-kind 
     provides benefits to the United States that are greater than 
     or equal to the benefits that are likely to have been 
     received had royalties been taken in-value.
       (e) Reports.--
       (1) In general.--Not later than September 30, 2006, the 
     Secretary shall submit to Congress a report that addresses--
       (A) actions taken to develop businesses processes and 
     automated systems to fully support the royalty-in-kind 
     capability to be used in tandem with the royalty-in-value 
     approach in managing Federal oil and gas revenue; and
       (B) future royalty-in-kind businesses operation plans and 
     objectives.
       (2) Reports on oil or gas royalties taken in-kind.--For 
     each of fiscal years 2006 through 2015 in which the United 
     States takes oil or gas royalties in-kind from production in 
     any State or from the outer Continental Shelf, excluding 
     royalties taken in-kind and sold to refineries under 
     subsection (h), the Secretary shall submit to Congress a 
     report that describes--
       (A) the 1 or more methodologies used by the Secretary to 
     determine compliance with subsection (d), including the 
     performance standard for comparing amounts received by the 
     United States derived from royalties in-kind to amounts 
     likely to have been received had royalties been taken in-
     value;
       (B) an explanation of the evaluation that led the Secretary 
     to take royalties in-kind from a lease or group of leases, 
     including the expected revenue effect of taking royalties in-
     kind;
       (C) actual amounts received by the United States derived 
     from taking royalties in-kind and costs and savings incurred 
     by the United States associated with taking royalties in-
     kind, including administrative savings and any new or 
     increased administrative costs; and
       (D) an evaluation of other relevant public benefits or 
     detriments associated with taking royalties in-kind.
       (f) Deduction of Expenses.--
       (1) In general.--Before making payments under section 35 of 
     the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of 
     the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) of 
     revenues derived from the sale of royalty production taken 
     in-kind from a lease, the Secretary shall deduct amounts paid 
     or deducted under subsections (b)(4) and (c) and deposit the 
     amount of the deductions in the miscellaneous receipts of the 
     Treasury.
       (2) Accounting for deductions.--If the Secretary allows the 
     lessee to deduct transportation or processing costs under 
     subsection (c), the Secretary may not reduce any payments to 
     recipients of revenues derived from any other Federal oil and 
     gas lease as a consequence of that deduction.
       (g) Consultation with States.--The Secretary--
       (1) shall consult with a State before conducting a royalty 
     in-kind program under this subtitle within the State;
       (2) may delegate management of any portion of the Federal 
     royalty in-kind program to the State except as otherwise 
     prohibited by Federal law; and
       (3) 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 the revenues likely to have been received had royalties 
     been taken in-value.
       (h) Small Refineries.--
       (1) Preference.--If the Secretary finds that sufficient 
     supplies of crude oil are not available in the open market to 
     refineries that do not have their own source of supply for 
     crude oil, the Secretary may grant preference to those 
     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 those 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 may, at 
     the discretion of the Secretary, prorate the oil among 
     refineries described in paragraph (1) in the area in which 
     the oil is produced.
       (i) Disposition to Federal Agencies.--
       (1) Onshore royalty.--Any royalty oil or gas taken by the 
     Secretary in-kind from onshore oil and gas leases may be sold 
     at not less than the market price to any Federal agency.
       (2) Offshore royalty.--Any royalty oil or gas taken in-kind 
     from a Federal oil or gas lease on the outer Continental 
     Shelf may be disposed of only under section 27 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1353).
       (j) Federal Low-Income Energy Assistance Programs.--
       (1) Preference.--In disposing of royalty oil or gas taken 
     in-kind under this section, the Secretary may grant a 
     preference to any person, including any Federal or State 
     agency, for the purpose of providing additional resources to 
     any Federal low-income energy assistance program.
       (2) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     Congress--
       (A) assessing the effectiveness of granting preferences 
     specified in paragraph (1); and

[[Page 12424]]

       (B) providing a specific recommendation on the continuation 
     of authority to grant preferences.

     SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES.

       (a) Definition of Marginal Property.--Until such time as 
     the Secretary issues regulations under subsection (e) that 
     prescribe a different definition, in this section, the term 
     ``marginal property'' means an onshore unit, communitization 
     agreement, or lease not within a unit or communitization 
     agreement, that produces on average the combined equivalent 
     of less than 15 barrels of oil per well per day or 90,000,000 
     British thermal units of gas per well per day calculated 
     based on the average over the 3 most recent production 
     months, including only wells that produce on more than half 
     of the days during those 3 production months.
       (b) Conditions for Reduction of Royalty Rate.--Until such 
     time as the Secretary issues regulations under subsection (e) 
     that prescribe different standards or requirements, the 
     Secretary shall reduce the royalty rate on--
       (1) oil production from marginal properties as prescribed 
     in subsection (c) if the spot price of West Texas 
     Intermediate crude oil at Cushing, Oklahoma, is, on average, 
     less than $15 per barrel (adjusted in accordance with the 
     Consumer Price Index for all-urban consumers, United States 
     city average, as published by the Bureau of Labor Statistics) 
     for 90 consecutive trading days; and
       (2) gas production from marginal properties as prescribed 
     in subsection (c) if the spot price of natural gas delivered 
     at Henry Hub, Louisiana, is, on average, less than $2.00 per 
     million British thermal units (adjusted in accordance with 
     the Consumer Price Index for all-urban consumers, United 
     States city average, as published by the Bureau of Labor 
     Statistics) for 90 consecutive trading days.
       (c) Reduced Royalty Rate.--
       (1) In general.--When a marginal property meets the 
     conditions specified in subsection (b), the royalty rate 
     shall be the lesser of--
       (A) 5 percent; or
       (B) the applicable rate under any other statutory or 
     regulatory royalty relief provision that applies to the 
     affected production.
       (2) Period of effectiveness.--The reduced royalty rate 
     under this subsection shall be effective beginning on the 
     first day of the production month following the date on which 
     the applicable condition specified in subsection (b) is met.
       (d) Termination of Reduced Royalty Rate.--A royalty rate 
     prescribed in subsection (c)(1)(A) shall terminate--
       (1) with respect to oil production from a marginal 
     property, on the first day of the production month following 
     the date on which--
       (A) the spot price of West Texas Intermediate crude oil at 
     Cushing, Oklahoma, on average, exceeds $15 per barrel 
     (adjusted in accordance with the Consumer Price Index for 
     all-urban consumers, United States city average, as published 
     by the Bureau of Labor Statistics) for 90 consecutive trading 
     days; or
       (B) the property no longer qualifies as a marginal 
     property; and
       (2) with respect to gas production from a marginal 
     property, on the first day of the production month following 
     the date on which--
       (A) the spot price of natural gas delivered at Henry Hub, 
     Louisiana, on average, exceeds $2.00 per million British 
     thermal units (adjusted in accordance with the Consumer Price 
     Index for all-urban consumers, United States city average, as 
     published by the Bureau of Labor Statistics) for 90 
     consecutive trading days; or
       (B) the property no longer qualifies as a marginal 
     property.
       (e) Regulations Prescribing Different Relief.--
       (1) Discretionary regulations.--The Secretary may by 
     regulation prescribe different parameters, standards, and 
     requirements for, and a different degree or extent of, 
     royalty relief for marginal properties in lieu of those 
     prescribed in subsections (a) through (d).
       (2) Royalty relief for offshore wells.--With respect to 
     royalty relief for oil or gas produced from wells located on 
     the outer Continental Shelf, the Secretary shall use 
     authority available to the Secretary as of the day before the 
     date of enactment of this Act--
       (A) to accept and consider petitions from persons seeking, 
     and providing justification for, royalty relief for 1 or more 
     of those wells; and
       (B) not later than 90 days after the date of receipt of a 
     petition, on a case-by-case basis--
       (i) approve the petition and provide royalty relief or a 
     royalty reduction for oil or gas produced from the wells 
     covered by the petition; or
       (ii) disapprove the petition.
       (3) Considerations.--In issuing regulations under this 
     subsection, the Secretary may consider--
       (A) oil and gas prices and market trends;
       (B) production costs;
       (C) abandonment costs;
       (D) Federal and State tax provisions and the effects of 
     those provisions on production economics;
       (E) other royalty relief programs;
       (F) regional differences in average wellhead prices;
       (G) national energy security issues; and
       (H) other relevant matters, as determined by the Secretary.
       (f) Savings Provision.--Nothing in this section prevents a 
     lessee from receiving royalty relief or a royalty reduction 
     pursuant to any other law (including a regulation) that 
     provides more relief than the amounts provided by this 
     section.

     SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP 
                   WELLS IN THE SHALLOW WATERS OF THE GULF OF 
                   MEXICO.

       (a) Definitions.--In this section:
       (1) Lease issued in shallow waters.--The term ``lease 
     issued in shallow waters'' means--
       (A) a lease entirely in water less than 200 meters deep; or
       (B) a lease--
       (i) partially in water less than 200 meters deep; and
       (ii) to which no royalty relief provisions in law or lease 
     terms apply.
       (2) Sidetrack.--
       (A) In general.--The term ``sidetrack'' means a well 
     resulting from drilling an additional hole to a new objective 
     bottom-hole location by leaving a previously drilled hole.
       (B) Inclusion.--The term ``sidetrack'' includes--
       (i) drilling a well from a platform slot reclaimed from a 
     previously drilled well;
       (ii) re-entering and deepening a previously drilled well; 
     and
       (iii) a bypass from a sidetrack, including drilling around 
     material blocking a hole or drilling to straighten a crooked 
     hole.
       (3) Ultra deep well.--The term ``ultra deep well'' means a 
     well drilled with a perforated interval, the top of which is 
     at least 20,000 feet true vertical depth below the datum at 
     mean sea level.
       (b) Regulations.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, in addition to any other regulations 
     that may provide royalty incentives for natural gas produced 
     from deep wells on oil and gas leases issued pursuant to, or 
     regulated under, the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.), the Secretary shall issue regulations 
     granting royalty relief suspension volumes of not less than 
     35,000,000,000 cubic feet with respect to the production of 
     natural gas from ultra deep wells on leases issued in shallow 
     waters located in the Gulf of Mexico wholly west of 87 deg., 
     30'' West longitude that are issued before the date that is 
     180 days after the date of enactment of this Act.
       (2) Suspension volumes.--The Secretary may grant suspension 
     volumes of less than 35,000,000,000 cubic feet in any case in 
     which--
       (A) the ultra deep well is a sidetrack; or
       (B) the lease has previously produced from wells with a 
     perforated interval the top of which is at least 15,000 feet 
     true vertical depth below the datum at mean sea level.
       (c) Limitation.--The Secretary shall not grant royalty 
     incentives under this section if the average annual natural 
     gas price on the New York Mercantile Exchange exceeds a 
     threshold price specified, and adjusted for inflation, by the 
     Secretary.
       (d) Applicability.--
       (1) In general.--Royalty incentives under this subsection 
     apply only to natural gas production from ultra deep wells 
     that are drilled after the date of enactment of this Act.
       (2) Review and suspension.--Not earlier than 10 years after 
     the date of enactment of this Act, the Secretary may--
       (A) review the relief granted under this section; and
       (B) by regulation, modify or suspend the relief.

     SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

       (a) In General.--Subject to subsections (b) and (c), for 
     each tract located in water depths of greater than 400 meters 
     in the Western and Central Planning Area of the Gulf of 
     Mexico (including the portion of the Eastern Planning Area of 
     the Gulf of Mexico encompassing whole lease blocks lying west 
     of 87 degrees, 30 minutes West longitude), any oil or gas 
     lease sale under the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.) occurring during the 5-year period 
     beginning on the date of enactment of this Act shall use the 
     bidding system authorized under section 8(a)(1)(H) of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
       (b) Suspension of Royalties.--The suspension of royalties 
     under subsection (a) shall be established at a volume of not 
     less than--
       (1) 5,000,000 barrels of oil equivalent for each lease in 
     water depths of 400 meters or more but less than 800 meters;
       (2) 9,000,000 barrels of oil equivalent for each lease in 
     water depths of 800 meters or more but not greater than 1,600 
     meters; and
       (3) 12,000,000 barrels of oil equivalent for each lease in 
     water depths greater than 1,600 meters.
       (c) Limitation.--The Secretary may place limitations on 
     royalty relief granted under this section based on market 
     price.

     SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION.

       Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(3)(B)) is

[[Page 12425]]

     amended by inserting ``and in the Planning Areas offshore 
     Alaska,'' after ``West longitude,''.

     SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM 
                   RESERVE IN ALASKA.

       (a) Transfer of Authority.--
       (1) Redesignation.--The Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6501 et seq.) is amended by 
     redesignating section 107 (42 U.S.C. 6507) as section 108.
       (2) Transfer.--The matter under the heading ``exploration 
     of national petroleum reserve in alaska'' under the heading 
     ``Energy and Minerals'' of title I of Public Law 96-514 (42 
     U.S.C. 6508) is--
       (A) transferred to the Naval Petroleum Reserves Production 
     Act of 1976 (42 U.S.C. 6501 et seq.);
       (B) redesignated as section 107 of that Act; and
       (C) moved so as to appear after section 106 of that Act (42 
     U.S.C. 6506).
       (b) Competitive Leasing.--Section 107 of the Naval 
     Petroleum Reserves Production Act of 1976 (as amended by 
     subsection (a)(2)) is amended--
       (1) by striking the heading and all that follows through 
     ``Provided, That (1) activities'' and inserting the 
     following:

     ``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

       ``(a) In General.--The Secretary shall conduct an 
     expeditious program of competitive leasing of oil and gas in 
     the Reserve in accordance with this Act.
       ``(b) Mitigation of Adverse Effects.--
       ``(1) In general.--Activities'';
       (2) in subsection (b)(1) (as designated by paragraph (1)), 
     by striking ``to mitigate'' and inserting ``to prevent to the 
     extent practicable, and to mitigate,'';
       (3) by striking ``Alaska (the Reserve); (2) the'' and 
     inserting ``Alaska.
       ``(2) Certain resources and facilities.--In carrying out 
     the leasing program under this section, the Secretary shall 
     minimize, to the extent practicable, the impact to surface 
     resources and consolidate facilities.
       ``(c) Land Use Planning; BLM Wilderness Study.--The'';
       (4) by striking ``Reserve; (3) the'' and inserting 
     ``Reserve.
       ``(d) First Lease Sale.--The;'';
       (5) by striking ``4332); (4) the'' and inserting ``4321 et 
     seq.).
       ``(e) Withdrawals.--The'';
       (6) by striking ``herein; (5) bidding'' and inserting 
     ``under this section.
       ``(f) Bidding Systems.--Bidding'';
       (7) by striking ``629); (6) lease'' and inserting ``629).
       ``(g) Geological Structures.--Lease'';
       (8) by striking ``structures; (7) the'' and inserting 
     ``structures.
       ``(h) Size of Lease Tracts.--The'';
       (9) by striking ``Secretary; (8)'' and all that follows 
     through ``Drilling, production,'' and inserting ``Secretary.
       ``(i) Terms.--
       ``(1) In general.--Each lease shall be issued for an 
     initial period of not more than 10 years, and shall be 
     extended for so long thereafter as oil or gas is produced 
     from the lease in paying quantities or drilling or reworking 
     operations, as approved by the Secretary, are conducted on 
     the leased land.
       ``(2) Termination.--No lease issued under this section 
     covering lands capable of producing oil or gas in paying 
     quantities shall expire because the lessee fails to produce 
     the same unless the lessee is allowed a reasonable time, 
     which shall be not less than 60 days after notice by 
     registered or certified mail, within which to place the lands 
     in producing status or unless, after such status is 
     established, production is discontinued on the leased 
     premises without permission granted by the Secretary under 
     the provisions of this Act.
       ``(3) Renewal of leases without discoveries.--At the end of 
     the primary term of a lease, the Secretary shall renew for 
     one additional 10-year term a lease that does not meet the 
     requirements of paragraph (1) if the lessee submits to the 
     Secretary an application for renewal not later than 60 days 
     before the expiration of the primary lease, pays the 
     Secretary a renewal fee of $100 per acre of leased land, 
     and--
       ``(A) the lessee provides evidence, and the Secretary 
     agrees that, the lessee has diligently pursued exploration 
     that warrants continuation with the intent of continued 
     exploration or future potential development of the leased 
     land; or
       ``(B) all or part of the lease
       ``(i) is part of a unit agreement covering a lease 
     described in subparagraph (A); and
       ``(ii) has not been previously contracted out of the unit.
       ``(4) Applicability.--This subsection applies to a lease 
     that is in effect on or after the date of enactment of the 
     Energy Policy Act of 2005.
       ``(j) Unit Agreements.--
       ``(1) In general.--For the purpose of conservation of the 
     natural resources of all or part of any oil or gas pool, 
     field, reservoir, or like area, lessees (including 
     representatives) of the pool, field, reservoir, or like area 
     may unite with each other, or jointly or separately with 
     others, in collectively adopting and operating under a unit 
     agreement for all or part of the pool, field, reservoir, or 
     like area (whether or not any other part of the oil or gas 
     pool, field, reservoir, or like area is already subject to 
     any cooperative or unit plan of development or operation), if 
     the Secretary determines the action to be necessary or 
     advisable in the public interest. In determining the public 
     interest, the Secretary shall, among other things, examine 
     the extent to which the unit agreement will minimize the 
     impact to surface resources of the leases and will facilitate 
     consolidation of facilities.
       ``(2) Consultation.--In making a determination under 
     paragraph (1), the Secretary shall consult with the State of 
     Alaska or a Regional Corporation (as defined in section 3 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1602)) 
     with respect to the creation or expansion of units that 
     include acreage in which the State of Alaska or the Regional 
     Corporation has an interest in the mineral estate.
       ``(3) Production allocation methodology.--(A) The Secretary 
     may use a production allocation methodology for each 
     participating area within a unit that includes solely Federal 
     land in the Reserve.
       ``(B) The Secretary shall use a production allocation 
     methodology for each participating area within a unit that 
     includes Federal land in the Reserve and non-Federal land 
     based on the characteristics of each specific oil or gas 
     pool, field, reservoir, or like area to take into account 
     reservoir heterogeneity and area variation in reservoir 
     producibility across diverse leasehold interests. The 
     implementation of the foregoing production allocation 
     methodology shall be controlled by agreement among the 
     affected lessors and lessees.
       ``(4) Benefit of Operations.--Drilling, production,'';
       (10) by striking ``When separate'' and inserting the 
     following:
       ``(5) Pooling.--If separate'';
       (11) by inserting ``(in consultation with the owners of the 
     other land)'' after ``determined by the Secretary of the 
     Interior'';
       (12) by striking ``thereto; (10) to'' and all that follows 
     through ``the terms provided therein'' and inserting ``to the 
     agreement.
       ``(k) Exploration Incentives.--
       ``(1) In general.--
       ``(A) Waiver, suspension, or reduction.--To encourage the 
     greatest ultimate recovery of oil or gas or in the interest 
     of conservation, the Secretary may waive, suspend, or reduce 
     the rental fees or minimum royalty, or reduce the royalty on 
     an entire leasehold (including on any lease operated pursuant 
     to a unit agreement), whenever (after consultation with the 
     State of Alaska and the North Slope Borough of Alaska and the 
     concurrence of any Regional Corporation for leases that 
     include land that was made available for acquisition by the 
     Regional Corporation under the provisions of section 1431(o) 
     of the Alaska National Interest Lands Conservation Act (16 
     U.S.C. 3101 et seq.)) in the judgment of the Secretary it is 
     necessary to do so to promote development, or whenever in the 
     judgment of the Secretary the leases cannot be successfully 
     operated under the terms provided therein.
       ``(B) Applicability.--This paragraph applies to a lease 
     that is in effect on or after the date of enactment of the 
     Energy Policy Act of 2005.'';
       (13) by striking ``The Secretary is authorized to'' and 
     inserting the following:
       ``(2) Suspension of operations and production.--The 
     Secretary may'';
       (14) by striking ``In the event'' and inserting the 
     following:
       ``(3) Suspension of payments.--If'';
       (15) by striking ``thereto; and (11) all'' and inserting 
     ``to the lease.
       ``(l) Receipts.--All'';
       (16) by redesignating subparagraphs (A), (B), and (C) as 
     paragraphs (1), (2), and (3), respectively;
       (17) by striking ``Any agency'' and inserting the 
     following:
       ``(m) Explorations.--Any agency'';
       (18) by striking ``Any action'' and inserting the 
     following:
       ``(n) Environmental Impact Statements.--
       ``(1) Judicial review.--Any action'';
       (19) by striking ``The detailed'' and inserting the 
     following:
       ``(2) Initial lease sales.--The detailed'';
       (20) by striking ``of the Naval Petroleum Reserves 
     Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''; and
       (21) by adding at the end the following:
       ``(o) Regulations.--As soon as practicable after the date 
     of enactment of the Energy Policy Act of 2005, the Secretary 
     shall issue regulations to implement this section.
       ``(p) Waiver of Administration for Conveyed Lands.--
       ``(1) In general.--Notwithstanding section 14(g) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1613(g)), the 
     Secretary of the Interior shall waive administration of any 
     oil and gas lease to the extent that the lease covers any 
     land in the Reserve in which all of the subsurface estate is 
     conveyed to the Arctic Slope Regional Corporation (referred 
     to in this subsection as the `Corporation').
       ``(2) Partial conveyance.--
       ``(A) In general.--In a case in which a conveyance of a 
     subsurface estate described in paragraph (1) does not include 
     all of the land covered by the oil and gas lease, the person 
     that owns the subsurface estate in any particular portion of 
     the land covered by the

[[Page 12426]]

     lease shall be entitled to all of the revenues reserved under 
     the lease as to that portion, including, without limitation, 
     all the royalty payable with respect to oil or gas produced 
     from or allocated to that portion.
       ``(B) Segregation of lease.--In a case described in 
     subparagraph (A), the Secretary of the Interior shall--
       ``(i) segregate the lease into 2 leases, 1 of which shall 
     cover only the subsurface estate conveyed to the Corporation; 
     and
       ``(ii) waive administration of the lease that covers the 
     subsurface estate conveyed to the Corporation.
       ``(C) No change in lease obligations.--The segregation of 
     the lease described in subparagraph (B)(i) has no effect on 
     the obligations of the lessee under either of the resulting 
     leases, including obligations relating to operations, 
     production, or other circumstances (other than payment of 
     rentals or royalties).
       ``(3) Authority to manage federally owned surface estate.--
     Nothing in this subsection limits the authority of the 
     Secretary of the Interior to manage the federally-owned 
     surface estate within the Reserve.''.
       (c) Conforming Amendments.--Section 104 of the Naval 
     Petroleum Reserves Production Act of 1976 (42 U.S.C. 6504) is 
     amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) through (d) as 
     subsections (a) through (c), respectively.

     SEC. 318. NORTH SLOPE SCIENCE INITIATIVE.

       (a) Establishment.--
       (1) In general.--The Secretary of the Interior shall 
     establish a long-term initiative to be known as the ``North 
     Slope Science Initiative'' (referred to in this section as 
     the ``Initiative'').
       (2) Purpose.--The purpose of the Initiative shall be to 
     implement efforts to coordinate collection of scientific data 
     that will provide a better understanding of the terrestrial, 
     aquatic, and marine ecosystems of the North Slope of Alaska.
       (b) Objectives.--To ensure that the Initiative is conducted 
     through a comprehensive science strategy and implementation 
     plan, the Initiative shall, at a minimum--
       (1) identify and prioritize information needs for 
     inventory, monitoring, and research activities to address the 
     individual and cumulative effects of past, ongoing, and 
     anticipated development activities and environmental change 
     on the North Slope;
       (2) develop an understanding of information needs for 
     regulatory and land management agencies, local governments, 
     and the public;
       (3) focus on prioritization of pressing natural resource 
     management and ecosystem information needs, coordination, and 
     cooperation among agencies and organizations;
       (4) coordinate ongoing and future inventory, monitoring, 
     and research activities to minimize duplication of effort, 
     share financial resources and expertise, and assure the 
     collection of quality information;
       (5) identify priority needs not addressed by agency science 
     programs in effect on the date of enactment of this Act and 
     develop a funding strategy to meet those needs;
       (6) provide a consistent approach to high caliber science, 
     including inventory, monitoring, and research;
       (7) maintain and improve public and agency access to--
       (A) accumulated and ongoing research; and
       (B) contemporary and traditional local knowledge; and
       (8) ensure through appropriate peer review that the science 
     conducted by participating agencies and organizations is of 
     the highest technical quality.
       (c) Membership.--
       (1) In general.--To ensure comprehensive collection of 
     scientific data, in carrying out the Initiative, the 
     Secretary shall consult and coordinate with Federal, State, 
     and local agencies that have responsibilities for land and 
     resource management across the North Slope.
       (2) Cooperative agreements.--The Secretary shall enter into 
     cooperative agreements with the State of Alaska, the North 
     Slope Borough, the Arctic Slope Regional Corporation, and 
     other Federal agencies as appropriate to coordinate efforts, 
     share resources, and fund projects under this section.
       (d) Science Technical Advisory Panel.--
       (1) In general.--The Initiative shall include a panel to 
     provide advice on proposed inventory, monitoring, and 
     research functions.
       (2) Membership.--The panel described in paragraph (1) shall 
     consist of a representative group of not more than 15 
     scientists and technical experts from diverse professions and 
     interests, including the oil and gas industry, subsistence 
     users, Native Alaskan entities, conservation organizations, 
     wildlife management organizations, and academia, as 
     determined by the Secretary.
       (e) Reports.--Not later than 3 years after the date of 
     enactment of this section and each year thereafter, the 
     Secretary shall publish a report that describes the studies 
     and findings of the Initiative.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 319. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL 
                   LAND.

       (a) In General.--The Secretary, in cooperation with the 
     Secretary of Agriculture, shall establish a program not later 
     than 1 year after the date of enactment of this Act to 
     remediate, reclaim, and close orphaned, abandoned, or idled 
     oil and gas wells located on land administered by the land 
     management agencies within the Department of the Interior and 
     the Department of Agriculture.
       (b) Activities.--The program under subsection (a) shall--
       (1) include a means of ranking orphaned, abandoned, or 
     idled wells sites for priority in remediation, reclamation, 
     and closure, based on public health and safety, potential 
     environmental harm, and other land use priorities;
       (2) provide for identification and recovery of the costs of 
     remediation, reclamation, and closure from persons or other 
     entities currently providing a bond or other financial 
     assurance required under State or Federal law for an oil or 
     gas well that is orphaned, abandoned, or idled; and
       (3) provide for recovery from the persons or entities 
     identified under paragraph (2), or their sureties or 
     guarantors, of the costs of remediation, reclamation, and 
     closure of such wells.
       (c) Cooperation and Consultations.--In carrying out the 
     program under subsection (a), the Secretary shall--
       (1) work cooperatively with the Secretary of Agriculture 
     and the States within which Federal land is located; and
       (2) consult with the Secretary of Energy and the Interstate 
     Oil and Gas Compact Commission.
       (d) Plan.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in cooperation with the 
     Secretary of Agriculture, shall submit to Congress a plan for 
     carrying out the program under subsection (a).
       (e) Idled Well.--For the purposes of this section, a well 
     is idled if--
       (1) the well has been nonoperational for at least 7 years; 
     and
       (2) there is no anticipated beneficial use for the well.
       (f) Technical Assistance Program for Non-Federal Land.--
       (1) In general.--The Secretary of Energy shall establish a 
     program to provide technical and financial assistance to oil 
     and gas producing States to facilitate State efforts over a 
     10-year period to ensure a practical and economical remedy 
     for environmental problems caused by orphaned or abandoned 
     oil and gas exploration or production well sites on State or 
     private land.
       (2) Assistance.--The Secretary of Energy shall work with 
     the States, through the Interstate Oil and Gas Compact 
     Commission, to assist the States in quantifying and 
     mitigating environmental risks of onshore orphaned or 
     abandoned oil or gas wells on State and private land.
       (3) Activities.--The program under paragraph (1) shall 
     include--
       (A) mechanisms to facilitate identification, if feasible, 
     of the persons currently providing a bond or other form of 
     financial assurance required under State or Federal law for 
     an oil or gas well that is orphaned or abandoned;
       (B) criteria for ranking orphaned or abandoned well sites 
     based on factors such as public health and safety, potential 
     environmental harm, and other land use priorities;
       (C) information and training programs on best practices for 
     remediation of different types of sites; and
       (D) funding of State mitigation efforts on a cost-shared 
     basis.
       (g) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section $25,000,000 for each of fiscal years 
     2006 through 2010.
       (2) Use.--Of the amounts authorized under paragraph (1), 
     $5,000,000 are authorized for each fiscal year for activities 
     under subsection (f).

     SEC. 320. COMBINED HYDROCARBON LEASING.

       (a) Special Provisions Regarding Leasing.--Section 17(b)(2) 
     of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) in the first sentence of subparagraph (A) (as 
     designated by paragraph (1)), by striking ``they shall be'' 
     and inserting ``the lands may be''; and
       (3) by adding at the end the following:
       ``(B) For any area that contains any combination of tar 
     sand and oil or gas (or both), the Secretary may issue under 
     this Act, separately--
       ``(i) a lease for exploration for and extraction of tar 
     sand; and
       ``(ii) a lease for exploration for and development of oil 
     and gas.
       ``(C) A lease described in subparagraph (B) shall have 
     provisions addressing the appropriate accommodation of 
     resources.
       ``(D) A lease issued for tar sand development shall be 
     issued using the same bidding process, annual rental, and 
     posting period as a lease issued for oil and gas, except that 
     the minimum acceptable bid required for a lease issued for 
     tar sand shall be $2 per acre.''.
       (b) Conforming Amendment.--Section 17(b)(1)(B) of the 
     Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in 
     the second sentence by inserting ``subject to paragraph 
     (2)(B),'' after ``Thereafter,''.

[[Page 12427]]

       (c) Regulations.--Not later than 45 days after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     issue final regulations to implement the amendments made by 
     this section.

     SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE OUTER 
                   CONTINENTAL SHELF.

       (a) Amendment to Outer Continental Shelf Lands Act.--
     Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1337) is amended by adding at the end the following:
       ``(p) Leases, Easements, or Rights-Of-Way for Energy and 
     Related Purposes.--
       ``(1) In General.--The Secretary, in consultation with the 
     Secretary of the Department in which the Coast Guard is 
     operating and other relevant departments and agencies of the 
     Federal Government, may grant a lease, easement, or right-of-
     way on the outer Continental Shelf for activities not 
     otherwise authorized in this Act, the Deepwater Port Act of 
     1974 (33 U.S.C. 1501 et seq.), the Ocean Thermal Energy 
     Conversion Act of 1980 (42 U.S.C. 9101 et seq.), or other 
     applicable law, if those activities--
       ``(A) support exploration, development, or production of 
     oil or natural gas, except that a lease, easement, or right-
     of-way shall not be granted in an area in which oil and gas 
     preleasing, leasing, and related activities are prohibited by 
     a moratorium;
       ``(B) support transportation of oil or natural gas, 
     excluding shipping activities;
       ``(C) produce or support production, transportation, or 
     transmission of energy from sources other than oil and gas; 
     or
       ``(D) use, for energy-related purposes or for other 
     authorized marine-related purposes, facilities currently or 
     previously used for activities authorized under this Act, 
     except that any oil and gas energy-related uses shall not be 
     authorized in areas in which oil and gas preleasing, leasing, 
     and related activities are prohibited by a moratorium.
       ``(2) Payments.--The Secretary shall establish royalties, 
     fees, rentals, bonus, or other payments to ensure a fair 
     return to the United States for any lease, easement, or 
     right-of-way granted under this subsection.
       ``(3) Competitive or noncompetitive basis.--Except with 
     respect to projects that meet the criteria established under 
     section 321(d) of the Energy Policy Act of 2005, the 
     Secretary shall issue a lease, easement, or right-of-way 
     under paragraph (1) on a competitive basis unless the 
     Secretary determines after public notice of a proposed lease, 
     easement, or right-of-way that there is no competitive 
     interest.
       ``(4) Requirements.--The Secretary shall ensure that any 
     activity under this subsection is carried out in a manner 
     that provides for--
       ``(A) safety;
       ``(B) protection of the environment;
       ``(C) prevention of waste;
       ``(D) conservation of the natural resources of the outer 
     Continental Shelf;
       ``(E) coordination with relevant Federal agencies;
       ``(F) protection of national security interests of the 
     United States;
       ``(G) protection of correlative rights in the outer 
     Continental Shelf;
       ``(H) a fair return to the United States for any lease, 
     easement, or right-of-way under this subsection;
       ``(I) prevention of interference with reasonable uses (as 
     determined by the Secretary) of the exclusive economic zone, 
     the high seas, and the territorial seas;
       ``(J) consideration of--
       ``(i) the location of, and any schedule relating to, a 
     lease, easement, or right-of-way for an area of the outer 
     Continental Shelf; and
       ``(ii) any other use of the sea or seabed, including use 
     for a fishery, a sealane, a potential site of a deepwater 
     port, or navigation;
       ``(K) public notice and comment on any proposal submitted 
     for a lease, easement, or right-of-way under this subsection; 
     and
       ``(L) oversight, inspection, research, monitoring, and 
     enforcement relating to a lease, easement, or right-of-way 
     under this subsection.
       ``(5) Lease duration, suspension, and cancellation.--The 
     Secretary shall provide for the duration, issuance, transfer, 
     renewal, suspension, and cancellation of a lease, easement, 
     or right-of-way under this subsection.
       ``(6) Security.--The Secretary shall require the holder of 
     a lease, easement, or right-of-way granted under this 
     subsection to--
       ``(A) furnish a surety bond or other form of security, as 
     prescribed by the Secretary;
       ``(B) comply with such other requirements as the Secretary 
     considers necessary to protect the interests of the public 
     and the United States; and
       ``(C) provide for the restoration of the lease, easement, 
     or right-of-way.
       ``(7) Coordination and consultation with affected state and 
     local governments.--The Secretary shall provide for 
     coordination and consultation with the Governor of any State 
     or the executive of any local government that may be affected 
     by a lease, easement, or right-of-way under this subsection.
       ``(8) Regulations.--Not later than 270 days after the date 
     of enactment of the Energy Policy Act of 2005, the Secretary, 
     in consultation with the Secretary of Defense, the Secretary 
     of the Department in which the Coast Guard is operating, the 
     Secretary of Commerce, heads of other relevant departments 
     and agencies of the Federal Government, and the Governor of 
     any affected State, shall issue any necessary regulations to 
     carry out this subsection.
       ``(9) Effect of subsection.--Nothing in this subsection 
     displaces, supersedes, limits, or modifies the jurisdiction, 
     responsibility, or authority of any Federal or State agency 
     under any other Federal law.
       ``(10) Applicability.--This subsection does not apply to 
     any area on the outer Continental Shelf within the exterior 
     boundaries of any unit of the National Park System, National 
     Wildlife Refuge System, or National Marine Sanctuary System, 
     or any National Monument.''.
       (b) Coordinated OCS Mapping Initiative.--
       (1) In general.--The Secretary, in cooperation with the 
     Secretary of Commerce, the Commandant of the Coast Guard, and 
     the Secretary of Defense, shall establish an interagency 
     comprehensive digital mapping initiative for the outer 
     Continental Shelf to assist in decisionmaking relating to the 
     siting of activities under subsection (p) of section 8 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1337) (as added 
     by subsection (a)).
       (2) Use of data.--The mapping initiative shall use, and 
     develop procedures for accessing, data collected before the 
     date on which the mapping initiative is established, to the 
     maximum extent practicable.
       (3) Inclusions.--Mapping carried out under the mapping 
     initiative shall include an indication of the locations on 
     the outer Continental Shelf of--
       (A) Federally-permitted activities;
       (B) obstructions to navigation;
       (C) submerged cultural resources;
       (D) undersea cables;
       (E) offshore aquaculture projects; and
       (F) any area designated for the purpose of safety, national 
     security, environmental protection, or conservation and 
     management of living marine resources.
       (c) Conforming Amendment.--Section 8 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
     striking the section heading and inserting the following: 
     ``Leases, Easements, and Rights-of-Way on the Outer 
     Continental Shelf.--''.
       (d) Savings Provision.--Nothing in the amendment made by 
     subsection (a) requires the resubmittal of any document that 
     was previously submitted or the reauthorization of any action 
     that was previously authorized with respect to a project for 
     which, before the date of enactment of this Act--
       (1) an offshore test facility has been constructed; or
       (2) a request for a proposal has been issued by a public 
     authority.

     SEC. 322. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

       (a) Short Title.--This section may be cited as the 
     ``National Geological and Geophysical Data Preservation 
     Program Act of 2005''.
       (b) Program.--The Secretary shall carry out a National 
     Geological and Geophysical Data Preservation Program in 
     accordance with this section--
       (1) to archive geologic, geophysical, and engineering data, 
     maps, well logs, and samples;
       (2) to provide a national catalog of such archival 
     material; and
       (3) to provide technical and financial assistance related 
     to the archival material.
       (c) Plan.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a plan for the implementation of the Program.
       (d) Data Archive System.--
       (1) Establishment.--The Secretary shall establish, as a 
     component of the Program, a data archive system to provide 
     for the storage, preservation, and archiving of subsurface, 
     surface, geological, geophysical, and engineering data and 
     samples. The Secretary, in consultation with the Advisory 
     Committee, shall develop guidelines relating to the data 
     archive system, including the types of data and samples to be 
     preserved.
       (2) System components.--The system shall be comprised of 
     State agencies that elect to be part of the system and 
     agencies within the Department of the Interior that maintain 
     geological and geophysical data and samples that are 
     designated by the Secretary in accordance with this 
     subsection. The Program shall provide for the storage of data 
     and samples through data repositories operated by such 
     agencies.
       (3) Limitation of designation.--The Secretary may not 
     designate a State agency as a component of the data archive 
     system unless that agency is the agency that acts as the 
     geological survey in the State.
       (4) Data from federal land.--The data archive system shall 
     provide for the archiving of relevant subsurface data and 
     samples obtained from Federal land--
       (A) in the most appropriate repository designated under 
     paragraph (2), with preference being given to archiving data 
     in the State in which the data were collected; and
       (B) consistent with all applicable law and requirements 
     relating to confidentiality and proprietary data.
       (e) National Catalog.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the

[[Page 12428]]

     Secretary shall develop and maintain, as a component of the 
     Program, a national catalog that identifies--
       (A) data and samples available in the data archive system 
     established under subsection (d);
       (B) the repository for particular material in the system; 
     and
       (C) the means of accessing the material.
       (2) Availability.--The Secretary shall make the national 
     catalog accessible to the public on the site of the Survey on 
     the Internet, consistent with all applicable requirements 
     related to confidentiality and proprietary data.
       (f) Advisory Committee.--
       (1) In general.--The Advisory Committee shall advise the 
     Secretary on planning and implementation of the Program.
       (2) New duties.--In addition to its duties under the 
     National Geologic Mapping Act of 1992 (43 U.S.C. 31a et 
     seq.), the Advisory Committee shall perform the following 
     duties:
       (A) Advise the Secretary on developing guidelines and 
     procedures for providing assistance for facilities under 
     subsection (g)(1).
       (B) Review and critique the draft implementation plan 
     prepared by the Secretary under subsection (c).
       (C) Identify useful studies of data archived under the 
     Program that will advance understanding of the Nation's 
     energy and mineral resources, geologic hazards, and 
     engineering geology.
       (D) Review the progress of the Program in archiving 
     significant data and preventing the loss of such data, and 
     the scientific progress of the studies funded under the 
     Program.
       (E) Include in the annual report to the Secretary required 
     under section 5(b)(3) of the National Geologic Mapping Act of 
     1992 (43 U.S.C. 31d(b)(3)) an evaluation of the progress of 
     the Program toward fulfilling the purposes of the Program 
     under subsection (b).
       (g) Financial Assistance.--
       (1) Archive facilities.--Subject to the availability of 
     appropriations, the Secretary shall provide financial 
     assistance to a State agency that is designated under 
     subsection (d)(2) for providing facilities to archive energy 
     material.
       (2) Studies.--Subject to the availability of 
     appropriations, the Secretary shall provide financial 
     assistance to any State agency designated under subsection 
     (d)(2) for studies and technical assistance activities that 
     enhance understanding, interpretation, and use of materials 
     archived in the data archive system established under 
     subsection (d).
       (3) Federal share.--The Federal share of the cost of an 
     activity carried out with assistance under this subsection 
     shall be not more than 50 percent of the total cost of the 
     activity.
       (4) Private contributions.--The Secretary shall apply to 
     the non-Federal share of the cost of an activity carried out 
     with assistance under this subsection the value of private 
     contributions of property and services used for that 
     activity.
       (h) Report.--The Secretary shall include in each report 
     under section 8 of the National Geologic Mapping Act of 1992 
     (43 U.S.C. 31g)--
       (1) a description of the status of the Program;
       (2) an evaluation of the progress achieved in developing 
     the Program during the period covered by the report; and
       (3) any recommendations for legislative or other action the 
     Secretary considers necessary and appropriate to fulfill the 
     purposes of the Program under subsection (b).
       (i) Maintenance of State Effort.--It is the intent of 
     Congress that the States not use this section as an 
     opportunity to reduce State resources applied to the 
     activities that are the subject of the Program.
       (j) Definitions.--In this section:
       (1) Advisory committee.--The term ``Advisory Committee'' 
     means the advisory committee established under section 5 of 
     the National Geologic Mapping Act of 1992 (43 U.S.C. 31d).
       (2) Program.--The term ``Program'' means the National 
     Geological and Geophysical Data Preservation Program carried 
     out under this section.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the United 
     States Geological Survey.
       (4) Survey.--The term ``Survey'' means the United States 
     Geological Survey.
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS.

       Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 
     184(d)(1)) is amended by inserting after ``acreage held in 
     special tar sand areas'' the following: ``, and acreage under 
     any lease any portion of which has been committed to a 
     federally approved unit or cooperative plan or 
     communitization agreement or for which royalty (including 
     compensatory royalty or royalty in-kind) was paid in the 
     preceding calendar year,''.

     SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

       (a) Assessment.--The Secretary shall assess the economic 
     implications of the dependence of the State of Hawaii on oil 
     as the principal source of energy for the State, including--
       (1) the short- and long-term prospects for crude oil supply 
     disruption and price volatility and potential impacts on the 
     economy of Hawaii;
       (2) the economic relationship between oil-fired generation 
     of electricity from residual fuel and refined petroleum 
     products consumed for ground, marine, and air transportation;
       (3) the technical and economic feasibility of increasing 
     the contribution of renewable energy resources for generation 
     of electricity, on an island-by-island basis, including--
       (A) siting and facility configuration;
       (B) environmental, operational, and safety considerations;
       (C) the availability of technology;
       (D) the effects on the utility system, including 
     reliability;
       (E) infrastructure and transport requirements;
       (F) community support; and
       (G) other factors affecting the economic impact of such an 
     increase and any effect on the economic relationship 
     described in paragraph (2);
       (4) the technical and economic feasibility of using 
     liquefied natural gas to displace residual fuel oil for 
     electric generation, including neighbor island opportunities, 
     and the effect of the displacement on the economic 
     relationship described in paragraph (2), including--
       (A) the availability of supply;
       (B) siting and facility configuration for onshore and 
     offshore liquefied natural gas receiving terminals;
       (C) the factors described in subparagraphs (B) through (F) 
     of paragraph (3); and
       (D) other economic factors;
       (5) the technical and economic feasibility of using 
     renewable energy sources (including hydrogen) for ground, 
     marine, and air transportation energy applications to 
     displace the use of refined petroleum products, on an island-
     by-island basis, and the economic impact of the displacement 
     on the relationship described in (2); and
       (6) an island-by-island approach to--
       (A) the development of hydrogen from renewable resources; 
     and
       (B) the application of hydrogen to the energy needs of 
     Hawaii
       (b) Contracting Authority.--The Secretary may carry out the 
     assessment under subsection (a) directly or, in whole or in 
     part, through 1 or more contracts with qualified public or 
     private entities.
       (c) Report.--Not later than 300 days after the date of 
     enactment of this Act, the Secretary shall prepare (in 
     consultation with agencies of the State of Hawaii and other 
     stakeholders, as appropriate), and submit to Congress, a 
     report describing the findings, conclusions, and 
     recommendations resulting from the assessment.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 325. DENALI COMMISSION.

       (a) Definition of Commission.--In this section, the term 
     ``Commission'' means the Denali Commission established by the 
     Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public 
     Law 105-277).
       (b) Energy Programs.--The Commission shall use amounts made 
     available under subsection (d) to carry out energy programs, 
     including--
       (1) energy generation and development, including--
       (A) fuel cells, hydroelectric, solar, wind, wave, and tidal 
     energy; and
       (B) alternative energy sources;
       (2) the construction of energy transmission, including 
     interties;
       (3) the replacement and cleanup of fuel tanks;
       (4) the construction of fuel transportation networks and 
     related facilities;
       (5) power cost equalization programs; and
       (6) projects using coal as a fuel, including coal 
     gasification projects.
       (c) Open Meetings.--
       (1) In general.--Except as provided in paragraph (2), a 
     meeting of the Commission shall be open to the public if--
       (A) the Commission members take action on behalf of the 
     Commission; or
       (B) the deliberations of the Commission determine, or 
     result in the joint conduct or disposition of, official 
     Commission business.
       (2) Exceptions.--Paragraph (1) shall not apply to any 
     portion of a Commission meeting for which the Commission, in 
     public session, votes to close the meeting for the reasons 
     described in paragraph (2), (4), (5), or (6) of subsection 
     (c) of section 552b of title 5, United States Code.
       (3) Public notice.--
       (A) In general.--At least 1 week before a meeting of the 
     Commission, the Commission shall make a public announcement 
     of the meeting that describes--
       (i) the time, place, and subject matter of the meeting;
       (ii) whether the meeting is to be open or closed to the 
     public; and
       (iii) the name and telephone number of an appropriate 
     person to respond to requests for information about the 
     meeting.
       (B) Additional notice.--The Commission shall make a public 
     announcement of any

[[Page 12429]]

     change to the information made available under subparagraph 
     (A) at the earliest practicable time.
       (4) Minutes.--The Commission shall keep, and make available 
     to the public, a transcript, electronic recording, or minutes 
     from each Commission meeting, except for portions of the 
     meeting closed under paragraph (2).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Commission not more than 
     $55,000,000 for each of fiscal years 2006 through 2015 to 
     carry out subsection (b).

     SEC. 326. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS 
                   RESOURCES.

       (a) In General.--The Secretary of the Interior shall 
     conduct an inventory and analysis of oil and natural gas 
     resources beneath all of the waters of the United States 
     Outer Continental Shelf (``OCS''). The inventory and analysis 
     shall--
       (1) use available data on oil and gas resources in areas 
     offshore of Mexico and Canada that will provide information 
     on trends of oil and gas accumulation in areas of the OCS;
       (2) use any available technology, except drilling, but 
     including 3-D seismic technology to obtain accurate resource 
     estimates;
       (3) analyze how resource estimates in OCS areas have 
     changed over time in regards to gathering geological and 
     geophysical data, initial exploration, or full field 
     development, including areas such as the deepwater and 
     subsalt areas in the Gulf of Mexico;
       (4) estimate the effect that understated oil and gas 
     resource inventories have on domestic energy investments; and
       (5) identify and explain how legislative, regulatory, and 
     administrative programs or processes restrict or impede the 
     development of identified resources and the extent that they 
     affect domestic supply, such as moratoria, lease terms and 
     conditions, operational stipulations and requirements, 
     approval delays by the Federal government and coastal States, 
     and local zoning restrictions for onshore processing 
     facilities and pipeline landings.
       (b) Reports.--The Secretary of Interior shall submit a 
     report to Congress on the inventory of estimates and the 
     analysis of restrictions or impediments, together with any 
     recommendations, within 6 months of the date of enactment of 
     the section. The report shall be publicly available and 
     updated at least every 5 years.

     SEC. 327. REVIEW AND DEMONSTRATION PROGRAM FOR OIL AND 
                   NATURAL GAS PRODUCTION.

       (a) Review.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary of the Interior, in 
     consultation with the Secretary of Energy (referred to in 
     this section as the ``Secretary''), shall carry out a review 
     of, and submit to Congress a report on opportunities to 
     enhance production of oil and natural gas from public land 
     and the outer Continental Shelf, and increase sequestration 
     of carbon dioxide through the provision of royalty or other 
     production incentives to lessees that inject carbon dioxide 
     as a means of enhanced recovery.
       (2) Components.--The Secretary of the Interior shall 
     describe in the review and report under paragraph (1)--
       (A) eligibility requirements for incentives;
       (B) the appropriate level of royalty relief, if any;
       (C) other appropriate production incentives, if any;
       (D) an estimate of the increased quantity of oil and gas 
     production that could be achieved through implementation of 
     those incentives;
       (E) an estimate of the quantity of carbon sequestration 
     that could be achieved through implementation of those 
     incentives;
       (F) practices (and the extent of the use of the practices) 
     as of the date of enactment of this Act that rely on carbon 
     dioxide injection for enhanced oil and gas recovery; and
       (G) any recommendations for implementation of royalty 
     relief or other production incentives, including--
       (i) the period of time during which those incentives should 
     be available; and
       (ii) any geographic or other limitations that should apply 
     to the incentives.
       (b) Demonstration Program.--
       (1) Establishment.--
       (A) In general.--The Secretary shall establish a 
     competitive grant program to provide grants to producers of 
     oil and gas to carry out projects to inject carbon dioxide 
     for the purpose of enhancing recovery of oil or natural gas 
     while increasing the sequestration of carbon dioxide.
       (B) Projects.--The demonstration program shall provide 
     for--
       (i) not more than 10 projects in the Willistin Basin in 
     North Dakota and Montana; and
       (ii) 1 project in the Cook Inlet Basin in Alaska.
       (2) Requirements.--
       (A) In general.--The Secretary shall issue requirements 
     relating to applications for grants under paragraph (1).
       (B) Rulemaking.--The issuance of requirements under 
     subparagraph (A) shall not require a rulemaking.
       (C) Minimum requirements.--At a minimum, the Secretary 
     shall require under subparagraph (A) that an application for 
     a grant include--
       (i) a description of the project proposed in the 
     application;
       (ii) an estimate of the production increase and the 
     duration of the production increase from the project, as 
     compared to conventional recovery techniques, including water 
     flooding;
       (iii) an estimate of the carbon dioxide sequestered by 
     project, over the life of the project;
       (iv) a plan to collect and disseminate data relating to 
     each project to be funded by the grant;
       (v) a description of the means by which the project will be 
     sustainable without Federal assistance after the completion 
     of the term of the grant;
       (vi) a complete description of the costs of the project, 
     including acquisition, construction, operation, and 
     maintenance costs over the expected life of the project;
       (vii) a description of which costs of the project will be 
     supported by Federal assistance under this section; and
       (viii) a description of any secondary or tertiary recovery 
     efforts in the field and the efficacy of water flood recovery 
     techniques used.
       (3) Partners.--An applicant for a grant under paragraph (1) 
     may carry out a project under a pilot program in partnership 
     with 1 or more other public or private entities.
       (4) Selection criteria.--In evaluating applications under 
     this subsection, the Secretary shall--
       (A) consider the previous experience with similar projects 
     of each applicant;
       (B) give priority consideration to applications that--
       (i) are most likely to maximize production of oil and gas 
     in a cost-effective manner;
       (ii) sequester significant quantities of carbon dioxide 
     from anthropogenic sources;
       (iii) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed project and 
     the greatest likelihood that the project will be maintained 
     or expanded after Federal assistance under this section is 
     completed; and
       (iv) minimize any adverse environmental effects from the 
     project.
       (5) Demonstration program requirements.--
       (A) Maximum amount.--The Secretary shall not provide more 
     than $3,000,000 in Federal assistance under this subsection 
     to any applicant.
       (B) Cost sharing.--The Secretary shall require cost-sharing 
     in accordance with section 1002.
       (C) Period of grants.--
       (i) In general.--A project funded by a grant under this 
     subsection shall begin construction not later than 2 years 
     after the date of provision of the grant, but in any case not 
     later than December 31, 2010.
       (ii) Term.--The Secretary shall not provide grant funds to 
     any applicant under this subsection for a period of more than 
     5 years.
       (6) Transfer of information and knowledge.--The Secretary 
     shall establish mechanisms to ensure that the information and 
     knowledge gained by participants in the program under this 
     subsection are transferred among other participants and 
     interested parties, including other applicants that submitted 
     applications for a grant under this subsection.
       (7) Schedule.--
       (A) Publication.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall publish in the 
     Federal Register, and elsewhere, as appropriate, a request 
     for applications to carry out projects under this subsection.
       (B) Date for applications.--An application for a grant 
     under this subsection shall be submitted not later than 180 
     days after the date of publication of the request under 
     subparagraph (A).
       (C) Selection.--After the date by which applications for 
     grants are required to be submitted under subparagraph (B), 
     the Secretary, in a timely manner, shall select, after peer 
     review and based on the criteria under paragraph (4), those 
     projects to be awarded a grant under this subsection.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                   Subtitle C--Access to Federal Land

     SEC. 341. FEDERAL ONSHORE OIL AND GAS LEASING PRACTICES.

       (a) Review of Onshore Oil and Gas Leasing Practices.--The 
     Secretary of the Interior shall make the necessary 
     arrangements with the National Academy of Public 
     Administration to commission the Academy to perform a review 
     of Federal onshore oil and gas leasing practices. The 
     Secretary of the Interior shall conduct an internal review 
     concurrent with the work of the National Academy of Public 
     Administration. The reviews shall include the following:
       (1) The process by which Federal land managers accept or 
     reject an offer to lease, including the timeframes in which 
     such offers are acted upon, and any recommendations for 
     improving and expediting the process.

[[Page 12430]]

       (2) The process for considering applications for permits to 
     drill, including the timeframes in which such applications 
     are considered, and any recommendations for improving and 
     expediting the process.
       (3) The process for considering surface use plans of 
     operation, including the timeframes in which such plans are 
     considered, and any recommendations for improving and 
     expediting the process.
       (4) 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, and any recommendations for improving and expediting 
     the process.
       (5) The process by which Federal land managers identify 
     stipulations to address site-specific concerns and 
     conditions, including those relating to the environment and 
     resource use conflicts, whether stipulations are effective in 
     addressing resource values, and any recommendations for 
     expediting and improving the identification and effectiveness 
     of stipulations.
       (6) The process by which the Federal land management 
     agencies coordinate planning and analysis with planning of 
     Federal, State, and local agencies having jurisdiction over 
     adjacent areas and other land uses, and any recommendations 
     for improving and expediting the process.
       (7) The documentation provided to lease applicants and 
     lessees with respect to determinations to reject lease 
     applications or to require modification of proposed surface 
     use plans of operation and recommendations regarding 
     improvement of such documentation to more clearly set forth 
     the basis for the decision.
       (8) The adequacy of resources available to the Secretary of 
     the Interior for administering the Federal onshore oil and 
     gas leasing program.
       (9) Actions taken by the Secretary under section 3 of 
     Executive Order No. 13212 (42 U.S.C. 13201 note).
       (10) Actions taken by, or plans of, the Secretary to 
     improve the Federal onshore oil and gas leasing program.
       (b) Report.--The Secretary of the Interior and the National 
     Academy of Public Administration shall report to the 
     Committee on Resources of the House of Representatives and to 
     the Committee on Energy and Natural Resources of the Senate 
     not later than 18 months after the date of the enactment of 
     this Act, summarizing the findings of their respective 
     reviews undertaken pursuant to this section and making 
     recommendations with respect to improvements in the Federal 
     onshore oil and gas leasing program.

     SEC. 342. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.

       (a) Timely Action on Leases and Permits.--
       (1) Secretary of the Interior.--To ensure timely action on 
     oil and gas leases and applications for permits to drill on 
     land otherwise available for leasing, the Secretary of the 
     Interior (referred to in this section as the ``Secretary'') 
     shall--
       (A) ensure expeditious compliance with section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)) and any other applicable environmental and 
     cultural resources laws;
       (B) improve consultation and coordination with the States 
     and the public; and
       (C) improve the collection, storage, and retrieval of 
     information relating to the oil and gas leasing activities.
       (2) Secretary of Agriculture.--To ensure timely action on 
     oil and gas lease applications for permits to drill on land 
     otherwise available for leasing, the Secretary of Agriculture 
     shall--
       (A) ensure expeditious compliance with all applicable 
     environmental and cultural resources laws; and
       (B) improve the collection, storage, and retrieval of 
     information relating to the oil and gas leasing activities.
       (b) Best Management Practices.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall develop and 
     implement best management practices to--
       (A) improve the administration of the onshore oil and gas 
     leasing program under the Mineral Leasing Act (30 U.S.C. 181 
     et seq.); and
       (B) ensure timely action on oil and gas leases and 
     applications for permits to drill on land otherwise available 
     for leasing.
       (2) Regulations.--Not later than 180 days after the 
     development of the best management practices under paragraph 
     (1), the Secretary shall publish, for public comment, 
     proposed regulations that set forth specific timeframes for 
     processing leases and applications in accordance with the 
     best management practices, including deadlines for--
       (A) approving or disapproving--
       (i) resource management plans and related documents;
       (ii) lease applications;
       (iii) applications for permits to drill; and
       (iv) surface use plans; and
       (B) related administrative appeals.
       (c) Improved Enforcement.--The Secretary and the Secretary 
     Agriculture shall improve inspection and enforcement of oil 
     and gas activities, including enforcement of terms and 
     conditions in permits to drill on land under the jurisdiction 
     of the Secretary and the Secretary of Agriculture, 
     respectively.
       (d) Authorization of Appropriations.--In addition to 
     amounts made available to carry out activities relating to 
     oil and gas leasing on public land administered by the 
     Secretary and National Forest System land administered by the 
     Secretary of Agriculture, there are authorized to be 
     appropriated for each of fiscal years 2006 through 2010--
       (1) to the Secretary, acting through the Director of the 
     Bureau of Land Management--
       (A) $40,000,000 to carry out subsections (a)(1) and (b); 
     and
       (B) $20,000,000 to carry out subsection (c);
       (2) to the Secretary, acting through the Director of the 
     United States Fish and Wildlife Service, $5,000,000 to carry 
     out subsection (a)(1); and
       (3) to the Secretary of Agriculture, acting through the 
     Chief of the Forest Service, $5,000,000 to carry out 
     subsections (a)(2) and (c).

     SEC. 343. CONSULTATION REGARDING OIL AND GAS LEASING ON 
                   PUBLIC LAND.

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

     SEC. 344. PILOT PROJECT TO IMPROVE FEDERAL PERMIT 
                   COORDINATION.

       (a) Establishment.--The Secretary of the Interior (referred 
     to in this section as the ``Secretary'') shall establish a 
     Federal Permit Streamlining Pilot Project (referred to in 
     this section as the ``Pilot Project'').
       (b) Memorandum of Understanding.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall enter into a 
     memorandum of understanding for purposes of this section 
     with--
       (A) the Secretary of Agriculture;
       (B) the Administrator of the Environmental Protection 
     Agency; and
       (C) the Chief of Engineers.
       (2) State participation.--The Secretary may request that 
     the Governors of Wyoming, Montana, Colorado, Utah, and New 
     Mexico be signatories to the memorandum of understanding.
       (c) Designation of Qualified Staff.--
       (1) In general.--Not later than 30 days after the date of 
     the signing of the memorandum of understanding under 
     subsection (b), all Federal signatory parties shall, if 
     appropriate, assign to each of the field offices identified 
     in subsection (d) an employee who has expertise in the 
     regulatory issues relating to the office in which the 
     employee is employed, including, as applicable, particular 
     expertise in--
       (A) the consultations and the preparation of biological 
     opinions under section 7 of the Endangered Species Act of 
     1973 (16 U.S.C. 1536);
       (B) permits under section 404 of Federal Water Pollution 
     Control Act (33 U.S.C. 1344);
       (C) regulatory matters under the Clean Air Act (42 U.S.C. 
     7401 et seq.);
       (D) planning under the National Forest Management Act of 
     1976 (16 U.S.C. 472a et seq.); and
       (E) the preparation of analyses under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (2) Duties.--Each employee assigned under paragraph (1) 
     shall--
       (A) not later than 90 days after the date of assignment, 
     report to the Bureau of Land Management Field Managers in the 
     office to which the employee is assigned;

[[Page 12431]]

       (B) be responsible for all issues relating to the 
     jurisdiction of the home office or agency of the employee; 
     and
       (C) participate as part of the team of personnel working on 
     proposed energy projects, planning, and environmental 
     analyses.
       (d) Field Offices.--The following Bureau of Land Management 
     Field Offices shall serve as the Pilot Project offices:
       (1) Rawlins, Wyoming.
       (2) Buffalo, Wyoming.
       (3) Miles City, Montana
       (4) Farmington, New Mexico.
       (5) Carlsbad, New Mexico.
       (6) Grand Junction/Glenwood Springs, Colorado.
       (7) Vernal, Utah.
       (e) Reports.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that--
       (1) outlines the results of the Pilot Project to date; and
       (2) makes a recommendation to the President regarding 
     whether the Pilot Project should be implemented throughout 
     the United States.
       (f) Additional Personnel.--The Secretary shall assign to 
     each field office identified in subsection (d) any additional 
     personnel that are necessary to ensure the effective 
     implementation of--
       (1) the Pilot Project; and
       (2) other programs administered by the field offices, 
     including inspection and enforcement relating to energy 
     development on Federal land, in accordance with the multiple 
     use mandate of the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1701 et seq).
       (g) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary such sums as are necessary to carry out this 
     section for each of fiscal years 2006 through 2010.
       (2) Transfer of funds.--For the purposes of coordination 
     and processing of oil and gas use authorizations on Federal 
     land under the administration of the Pilot Project offices 
     identified in subsection (d), the Secretary may authorize the 
     expenditure or transfer of such funds as are necessary to--
       (A) the United States Fish and Wildlife Service;
       (B) the Bureau of Indian Affairs;
       (C) the Forest Service;
       (D) the Environmental Protection Agency;
       (E) the Corps of Engineers; and
       (F) the States of Wyoming, Montana, Colorado, Utah, and New 
     Mexico.
       (h) Savings Provision.--Nothing in this section affects--
       (1) the operation of any Federal or State law; or
       (2) any delegation of authority made by the head of a 
     Federal agency whose employees are participating in the Pilot 
     Project.

     SEC. 345. ENERGY FACILITY RIGHTS-OF-WAYS AND CORRIDORS ON 
                   FEDERAL LAND.

       (a) Definitions.--In this section:
       (1) Corridor.--In this section and section 503 of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1763), the term ``corridor'' means--
       (A) a linear strip of land--
       (i) with a width determined with consideration given to 
     technological, environmental, and topographical factors; and
       (ii) that contains, or may in the future contain, 1 or more 
     utility facilities;
       (B) a land use designation that is established--
       (i) by law;
       (ii) by order of the head of a Federal agency;
       (iii) through the land use planning process; or
       (iv) by other management decision; and
       (C) a designation made for the purpose of establishing the 
     preferred location of a compatible utility facility.
       (2) Federal authorization.--
       (A) In general.--The term ``Federal authorization'' means 
     any authorization required under Federal law in order to site 
     a utility facility.
       (B) Inclusions.--The term ``Federal authorization'' 
     includes such permits, special use authorizations, 
     certifications, opinions, or other approvals as may be 
     required, that are issued by a Federal agency.
       (3) Federal land.--
       (A) In general.--The term ``Federal land'' means all land 
     owned by the United States.
       (B) Exclusions.--The term ``Federal land'' does not include 
     land--
       (i) within the National Park System;
       (ii) within the National Wilderness Preservation System;
       (iii) designated as a National Monument;
       (iv) held in trust for an Indian or Indian tribe; or
       (v) on the outer Continental Shelf.
       (4) Utility corridor.--The term ``utility corridor'' means 
     any linear strip of land across Federal land referred to in 
     subsection (b) of approved width, but limited for use by a 
     utility facility by technological, environmental, or 
     topographical factors.
       (5) Utility facility.--The term ``utility facility'' means 
     any privately-, publicly-, or cooperatively-owned line, 
     facility, or system--
       (A) for the transportation of--
       (i) oil or natural gas, synthetic liquid or gaseous fuel, 
     or any refined product produced from any of those materials; 
     or
       (ii) products in support of production, or for storage or 
     terminal facilities in connection with production; or
       (B) for the generation, transmission, or distribution of 
     electric energy.
       (b) Utility Corridors.--
       (1) In general.--Not later than 2 years after the document 
     described in subsection (c)(3) is completed, the Secretary of 
     the Interior, with respect to public lands (as defined in 
     section 103(e) of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1702(e)), and the Secretary of 
     Agriculture, with respect to National Forest System land, 
     shall designate utility corridors pursuant to--
       (A) section 503 of the Federal Land Policy and Management 
     Act (43 U.S.C. 1763) in the 11 contiguous Western States (as 
     identified in section 103(o) of that Act (43 U.S.C. 
     1702(o))); and
       (B) relevant departmental and agency land use and resource 
     management plans or equivalent plans.
       (2) Coordination.--The Secretary shall coordinate with 
     affected Federal agencies to jointly--
       (A) identify potential utility corridors on Federal land in 
     States not described in paragraph (1)(A); and
       (B) develop a schedule for the designation, environmental 
     review, and incorporation of the utility corridors into 
     relevant departmental and agency land use and resource 
     management plans or equivalent plans.
       (3) Specifications of corridor.--A corridor designated 
     under this section shall specify the centerline, width, and 
     compatible uses of the corridor.
       (c) Federal Permit Coordination.--
       (1) In general.--The Secretary shall enter into a 
     memorandum of understanding with the Secretary of the 
     Interior, the Secretary of Agriculture, and the Secretary of 
     Defense for the purpose of coordinating all applicable 
     Federal authorizations and environmental reviews relating to 
     a proposed or existing utility facility.
       (2) Additional entities.--To the maximum extent practicable 
     under applicable law, the Secretary shall coordinate the 
     process developed through the memorandum of understanding 
     under paragraph (1) with any Indian tribes, multistate 
     entities, and State agencies that are responsible for 
     conducting any separate permitting and environmental reviews 
     of the affected utility facility to ensure timely review and 
     permit decisions.
       (3) Contents of mou.--The memorandum of understanding under 
     paragraph (1) shall provide for--
       (A) coordination, among affected Federal agencies, to 
     ensure that the necessary Federal authorizations--
       (i) are conducted concurrently with applicable State siting 
     processes; and
       (ii) are considered within a specific time frame identified 
     within the memorandum of understanding;
       (B) an agreement among the affected Federal agencies to 
     prepare a programmatic environmental review document to be 
     used as the underlying basis for all Federal authorization 
     decisions; and
       (C) a process to expedite applications to construct or 
     modify utility facilities within utility corridors.

     SEC. 346. OIL SHALE LEASING.

       (a) Declaration of Policy.--Congress declares that it is 
     the policy of the United States that--
       (1) United States oil shale and oil sands are strategically 
     important domestic resources that should be developed through 
     methods that help reduce the growing dependence of the United 
     States on politically and economically unstable sources of 
     foreign oil imports;
       (2) the development of oil shale and oil sands, for 
     research and commercial development, should be conducted in 
     an environmentally sound and economically feasible manner; 
     and
       (3) development described in paragraph (2) should occur at 
     a deliberate pace, with an emphasis on sustainability, to 
     benefit the United States while taking into account affected 
     States and communities.
       (b) Leasing for Research and Development.--
       (1) In general.--In accordance with section 21 of the 
     Mineral Leasing Act (30 U.S.C. 241) and any other applicable 
     law, except as provided in this section, not later than 1 
     year after the date of enactment of this Act, from land 
     otherwise available for leasing, the Secretary of the 
     Interior (referred to in this section as the ``Secretary'') 
     shall, for a period determined by the Secretary, make 
     available for leasing such land as the Secretary considers to 
     be necessary to conduct research and development activities 
     with respect to innovative technologies for the recovery of 
     shale oil from oil shale resources on public land.
       (2) Application.--The Secretary may offer to lease the land 
     to persons that submit an application for the lease, if the 
     Secretary determines that there is no competitive interest in 
     the land.
       (3) Administration.--In carrying out this subsection, the 
     Secretary shall--
       (A) provide for environmentally sound research and 
     development of oil shale;

[[Page 12432]]

       (B) provide for an appropriate return to the public, as 
     determined by the Secretary;
       (C) before carrying out any activity that will disturb the 
     surface of land, provide for an adequate bond, surety, or 
     other financial arrangement to ensure reclamation;
       (D) provide for a primary lease term of 10 years, after 
     which the lease term may be extended if the Secretary 
     determines that diligent research and development activities 
     are occurring on the land leased;
       (E) require the owner or operator of a project under this 
     subsection, within such period as the Secretary may 
     determine--
       (i) to submit a plan of operations;
       (ii) to develop an environmental protection plan; and
       (iii) to undertake diligent research and development 
     activities;
       (F) ensure that leases under this section are not larger 
     than necessary to conduct research and development activities 
     under an application under paragraph (2);
       (G) provide for consultation with affected State and local 
     governments; and
       (H) provide for such requirements as the Secretary 
     determines to be in the public interest.
       (4) Moneys Received.--Any moneys received from a leasing 
     activity under this subsection shall be paid in accordance 
     with section 35 of the Mineral Leasing Act (30 U.S.C. 191).
       (c) Programmatic Environmental Impact Statement.--Not later 
     than 18 months after the date of enactment of this Act, in 
     accordance with section 102(2)(C) of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the 
     Secretary shall complete a programmatic environmental impact 
     statement that analyzes potential leasing for commercial 
     development of oil shale resources on public land.
       (d) Analysis of Potential Leasing Program.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report (including recommendations) analyzing a potential 
     leasing program for the commercial development of oil shale 
     on public land.
       (2) Inclusions.--The report under paragraph (1) shall 
     include--
       (A) an analysis of technologies and research and 
     development programs for the production of oil and other 
     materials from oil shale and tar sands in existence on the 
     date on which the report is prepared;
       (B) an analysis of--
       (i) whether leases under the program should be issued on a 
     competitive basis;
       (ii) the term of the leases;
       (iii) the maximum size of the leases;
       (iv) the use and distribution of bonus bid lease payments;
       (v) the royalty rate to be applied, including whether a 
     sliding scale royalty rate should be used;
       (vi) whether an opportunity should be provided to convert 
     research and development leases into leases for commercial 
     development, including the terms and conditions that should 
     apply to the conversion;
       (vii) the maximum number of leases and maximum acreage to 
     be leased under the leasing program to an individual; and
       (vii) any infrastructure required to support oil shale 
     development in industry and communities; and
       (C) an analysis, developed in conjunction with the 
     appropriate State water resource agencies, of the demand for, 
     and availability of, water with respect to the development of 
     oil shale.
       (3) Public participation.--In preparing the report under 
     this subsection, the Secretary shall provide notice to, and 
     solicit comment from--
       (A) the public;
       (B) representatives of local governments;
       (C) representatives of industry; and
       (D) other interested parties.
       (4) Participation by certain states.--In preparing the 
     report under this subsection, the Secretary shall--
       (A) provide notice to, and solicit comment from, the 
     Governors of the States of Colorado, Utah, and Wyoming; and
       (B) incorporate into the report submitted to Congress under 
     paragraph (1) any response of the Secretary to those 
     comments.
       (e) National Oil Shale Assessment.--
       (1) Assessment.--
       (A) In general.--The Secretary shall carry out a national 
     assessment of oil shale resources for the purposes of 
     evaluating and mapping oil shale deposits, in the geographic 
     areas described in subparagraph (B).
       (B) Geographic areas.--The geographic areas referred to in 
     subparagraph (A), listed in the order in which the Secretary 
     shall assign priority, are--
       (i) the Green River Region of the States of Colorado, Utah, 
     and Wyoming;
       (ii) the Devonian oil shales of the eastern United States; 
     and
       (iii) any remaining area in the central and western United 
     States (including the State of Alaska) that contains oil 
     shale, as determined by the Secretary.
       (2) Use of state surveys and universities.--In carrying out 
     the assessment under paragraph (1), the Secretary may request 
     assistance from any State-administered geological survey or 
     university.
       (f) State Water Rights.--Nothing in this section preempts 
     or affects any State water law or interstate compact relating 
     to water.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                      Subtitle D--Coastal Programs

     SEC. 371. COASTAL IMPACT ASSISTANCE PROGRAM.

       Section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a) is amended to read as follows:

     ``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Coastal political subdivision.--The term `coastal 
     political subdivision' means a political subdivision of a 
     coastal State any part of which political subdivision is--
       ``(A) within the coastal zone (as defined in section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
     the coastal State; and
       ``(B) not more than 200 miles from the geographic center of 
     any leased tract.
       ``(2) Coastal population.--The term `coastal population' 
     means the population, as determined by the most recent 
     official data of the Census Bureau, of each political 
     subdivision any part of which lies within the designated 
     coastal boundary of a State (as defined in a State's coastal 
     zone management program under the Coastal Zone Management Act 
     of 1972 (16 U.S.C. 1451 et seq.)).
       ``(3) Coastal state.--The term `coastal State' has the 
     meaning given the term in section 304 of the Coastal Zone 
     Management Act of 1972 (16 U.S.C. 1453).
       ``(4) Coastline.--The term `coastline' has the meaning 
     given the term `coast line' in section 2 of the Submerged 
     Lands Act (43 U.S.C. 1301).
       ``(5) Distance.--The term `distance' means the minimum 
     great circle distance, measured in statute miles.
       ``(6) Leased tract.--The term `leased tract' means a tract 
     that is subject to a lease under section 6 or 8 for the 
     purpose of drilling for, developing, and producing oil or 
     natural gas resources.
       ``(7) Leasing moratoria.--The term `leasing moratoria' 
     means the prohibitions on preleasing, leasing, and related 
     activities on any geographic area of the outer Continental 
     Shelf as contained in sections 107 through 109 of division E 
     of the Consolidated Appropriations Act, 2005 (Public Law 108-
     447; 118 Stat. 3063).
       ``(8) Political subdivision.--The term `political 
     subdivision' means the local political jurisdiction 
     immediately below the level of State government, including 
     counties, parishes, and boroughs.
       ``(9) Producing state.--
       ``(A) In general.--The term `producing State' means a 
     coastal State that has a coastal seaward boundary within 200 
     miles of the geographic center of a leased tract within any 
     area of the outer Continental Shelf.
       ``(B) Exclusion.--The term `producing State' does not 
     include a producing State, a majority of the coastline of 
     which is subject to leasing moratoria.
       ``(10) Qualified outer continental shelf revenues.--
       ``(A) In general.--The term `qualified Outer Continental 
     Shelf revenues' means all amounts received by the United 
     States from each leased tract or portion of a leased tract--
       ``(i) lying--

       ``(I) seaward of the zone covered by section 8(g); or
       ``(II) within that zone, but to which section 8(g) does not 
     apply; and

       ``(ii) the geographic center of which lies within a 
     distance of 200 miles from any part of the coastline of any 
     coastal State.
       ``(B) Inclusions.--The term `qualified Outer Continental 
     Shelf revenues' includes bonus bids, rents, royalties 
     (including payments for royalty taken in kind and sold), net 
     profit share payments, and related late-payment interest from 
     natural gas and oil leases issued under this Act.
       ``(C) Exclusion.--The term `qualified Outer Continental 
     Shelf revenues' does not include any revenues from a leased 
     tract or portion of a leased tract that is located in a 
     geographic area subject to a leasing moratorium on January 1, 
     2005.
       ``(b) Payments to Producing States and Coastal Political 
     Subdivisions.--
       ``(1) In general.--From revenues deposited under section 9, 
     there is authorized to be appropriated to the Secretary to 
     disburse funds to producing States and coastal political 
     subdivisions in accordance with this section $500,000,000 for 
     each of fiscal years 2006 through 2010.
       ``(2) Disbursement.--In each fiscal year, the Secretary 
     shall, subject to appropriations, disburse to each producing 
     State for which the Secretary has approved a plan under 
     subsection (c), and to coastal political subdivisions under 
     paragraph (5), such funds as are allocated to the producing 
     State or coastal political subdivision, respectively, under 
     this section for the fiscal year.
       ``(3) Transfer of amounts.--
       ``(A) In general.--From qualified outer Continental Shelf 
     revenues deposited in the Treasury under this Act for a 
     fiscal year, subject to appropriations, the Secretary of the 
     Treasury shall transfer to the Secretary to provide 
     disbursements to producing

[[Page 12433]]

     States and coastal political subdivisions under this section 
     $500,000,000 for each of fiscal years 2006 through 2010.
       ``(B) Disbursement.--For each fiscal year, the Secretary 
     shall, subject to the availability of appropriations under 
     subparagraph (A), disburse to each producing State for which 
     the Secretary has an approved plan under paragraph (4), and 
     to coastal political subdivisions under paragraph (5), the 
     funds allocated to the producing State or coastal political 
     subdivision under this section for the fiscal year.
       ``(4) Allocation among producing states.--
       ``(A) In general.--Except as provided in subparagraph (C) 
     and subject to subparagraph (D), the amounts available under 
     paragraph (1) shall be allocated to each producing State 
     based on the ratio that--
       ``(i) the amount of qualified outer Continental Shelf 
     revenues generated off the coastline of the producing State; 
     bears to
       ``(ii) the amount of qualified outer Continental Shelf 
     revenues generated off the coastline of all producing States.
       ``(B) Amount of outer continental shelf revenues.--For 
     purposes of subparagraph (A)--
       ``(i) the amount of qualified outer Continental Shelf 
     revenues for each of fiscal years 2006 through 2008 shall be 
     determined using qualified outer Continental Shelf revenues 
     received for fiscal year 2005; and
       ``(ii) the amount of qualified outer Continental Shelf 
     revenues for each of fiscal years 2009 through 2011 shall be 
     determined using qualified outer Continental Shelf revenues 
     received for fiscal year 2008.
       ``(C) Multiple producing states.--In a case in which more 
     than 1 producing State is located within 200 miles of any 
     portion of a leased tract, the amount allocated to each 
     producing State for the leased tract shall be inversely 
     proportional to the distance between--
       ``(i) the nearest point on the coastline of the producing 
     State; and
       ``(ii) the geographic center of the leased tract.
       ``(D) Minimum allocation.--The amount allocated to a 
     producing State under subparagraph (A) shall be at least 1 
     percent of the amounts available under paragraph (1).
       ``(5) Payments to coastal political subdivisions.--
       ``(A) In general.--The Secretary shall pay 35 percent of 
     the amount allocated under paragraph (3) to the coastal 
     political subdivisions in the producing State.
       ``(B) Formula.--Of the amount paid by the Secretary to 
     coastal political subdivisions under subparagraph (A)--
       ``(i) 25 percent shall be allocated to each coastal 
     political subdivision in the proportion that--

       ``(I) the coastal population of the coastal political 
     subdivision; bears to
       ``(II) the coastal population of all coastal political 
     subdivisions in the producing State;

       ``(ii) 25 percent shall be allocated to each coastal 
     political subdivision in the proportion that--

       ``(I) the number of miles of coastline of the coastal 
     political subdivision; bears to
       ``(II) the number of miles of coastline of all coastal 
     political subdivisions in the producing State; and

       ``(iii) 50 percent shall be allocated in amounts that are 
     inversely proportional to the respective distances between 
     the points in each coastal political subdivision that are 
     closest to the geographic center of each leased tract, as 
     determined by the Secretary.
       ``(C) Exception for the state of louisiana.--For the 
     purposes of subparagraph (B)(ii), the coastline for coastal 
     political subdivisions in the State of Louisiana without a 
     coastline shall be the average length of the coastline of all 
     coastal political subdivisions with a coastline in the State 
     of Louisiana.
       ``(D) Exception for the state of alaska.--For the purposes 
     of carrying out subparagraph (B)(iii) in the State of Alaska, 
     the amounts allocated shall be divided equally among the 2 
     coastal political subdivisions that are closest to the 
     geographic center of a leased tract.
       ``(E) Exclusion of certain leased tracts.--For purposes of 
     subparagraph (B)(iii), a leased tract or portion of a leased 
     tract shall be excluded if the tract or portion of a leased 
     tract is located in a geographic area subject to a leasing 
     moratorium on January 1, 2005.
       ``(6) No approved plan.--
       ``(A) In general.--Subject to subparagraph (B) and except 
     as provided in subparagraph (C), in a case in which any 
     amount allocated to a producing State or coastal political 
     subdivision under paragraph (4) or (5) is not disbursed 
     because the producing State does not have in effect a plan 
     that has been approved by the Secretary under subsection (c), 
     the Secretary shall allocate the undisbursed amount equally 
     among all other producing States.
       ``(B) Retention of allocation.--The Secretary shall hold in 
     escrow an undisbursed amount described in subparagraph (A) 
     until such date as the final appeal regarding the disapproval 
     of a plan submitted under subsection (c) is decided.
       ``(C) Waiver.--The Secretary may waive subparagraph (A) 
     with respect to an allocated share of a producing State and 
     hold the allocable share in escrow if the Secretary 
     determines that the producing State is making a good faith 
     effort to develop and submit, or update, a plan in accordance 
     with subsection (c).
       ``(c) Coastal Impact Assistance Plan.--
       ``(1) Submission of state plans.--
       ``(A) In general.--Not later than July 1, 2008, the 
     Governor of a producing State shall submit to the Secretary a 
     coastal impact assistance plan.
       ``(B) Public participation.--In carrying out subparagraph 
     (A), the Governor shall solicit local input and provide for 
     public participation in the development of the plan.
       ``(2) Approval.--
       ``(A) In general.--The Secretary shall approve a plan of a 
     producing State submitted under paragraph (1) before 
     disbursing any amount to the producing State, or to a coastal 
     political subdivision located in the producing State, under 
     this section.
       ``(B) Components.--The Secretary shall approve a plan 
     submitted under paragraph (1) if--
       ``(i) the Secretary determines that the plan is consistent 
     with the uses described in subsection (d); and
       ``(ii) the plan contains--

       ``(I) the name of the State agency that will have the 
     authority to represent and act on behalf of the producing 
     State in dealing with the Secretary for purposes of this 
     section;
       ``(II) a program for the implementation of the plan that 
     describes how the amounts provided under this section to the 
     producing State will be used;
       ``(III) for each coastal political subdivision that 
     receives an amount under this section--

       ``(aa) the name of a contact person; and
       ``(bb) a description of how the coastal political 
     subdivision will use amounts provided under this section;

       ``(IV) a certification by the Governor that ample 
     opportunity has been provided for public participation in the 
     development and revision of the plan; and
       ``(V) a description of measures that will be taken to 
     determine the availability of assistance from other relevant 
     Federal resources and programs.

       ``(3) Amendment.--Any amendment to a plan submitted under 
     paragraph (1) shall be--
       ``(A) developed in accordance with this subsection; and
       ``(B) submitted to the Secretary for approval or 
     disapproval under paragraph (4).
       ``(4) Procedure.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 90 days after the date on which a plan or 
     amendment to a plan is submitted under paragraph (1) or (3), 
     the Secretary shall approve or disapprove the plan or 
     amendment.
       ``(B) Exception.--For fiscal year 2006, the Secretary shall 
     approve or disapprove a plan submitted under paragraph (1) 
     not later than December 31, 2006.
       ``(d) Authorized Uses.--
       ``(1) In general.--A producing State or coastal political 
     subdivision shall use all amounts received under this 
     section, including any amount deposited in a trust fund that 
     is administered by the State or coastal political subdivision 
     and dedicated to uses consistent with this section, in 
     accordance with all applicable Federal and State law, only 
     for 1 or more of the following purposes:
       ``(A) Projects and activities for the conservation, 
     protection, or restoration of coastal areas, including 
     wetland.
       ``(B) Mitigation of damage to fish, wildlife, or natural 
     resources.
       ``(C) Planning assistance and the administrative costs of 
     complying with this section.
       ``(D) Implementation of a federally-approved marine, 
     coastal, or comprehensive conservation management plan.
       ``(E) Mitigation of the impact of outer Continental Shelf 
     activities through funding of onshore infrastructure projects 
     and public service needs.
       ``(2) Compliance with authorized uses.--If the Secretary 
     determines that any expenditure made by a producing State or 
     coastal political subdivision is not consistent with this 
     subsection, the Secretary shall not disburse any additional 
     amount under this section to the producing State or the 
     coastal political subdivision until such time as all amounts 
     obligated for unauthorized uses have been repaid or 
     reobligated for authorized uses.''.

                        Subtitle E--Natural Gas

     SEC. 381. EXPORTATION OR IMPORTATION OF NATURAL GAS.

       Section 3 of the Natural Gas Act (15 U.S.C. 717b) is 
     amended by adding at the end the following:
       ``(d) Except as specifically provided in this part, nothing 
     in this Act affects the rights of States under--
       ``(1) the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1451 et seq.)
       ``(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
       ``(3) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.).
       ``(e)(1) No facilities located onshore or in State waters 
     for the import of natural gas from a foreign country, or the 
     export of natural gas to a foreign country, shall be sited, 
     constructed, expanded, or operated, unless the Commission has 
     authorized such acts or operations.

[[Page 12434]]

       ``(2) The Commission shall have the exclusive authority to 
     approve or deny an application for the siting, construction, 
     expansion, or operation of facilities located onshore or in 
     State waters for the import of natural gas from a foreign 
     county or the export of natural gas to a foreign country.
       ``(3)(A) Except as provided in subparagraph (B), the 
     Commission may approve an application described in paragraph 
     (2), in whole or part, with such modifications and upon such 
     terms and conditions as the Commission finds appropriate.
       ``(B) The Commission shall not--
       ``(i) deny an application solely on the basis that the 
     applicant proposes to use the liquefied natural gas import 
     facility exclusively or partially for gas that the applicant 
     or an affiliate of the applicant will supply to the facility; 
     or
       ``(ii) condition an order on--
       ``(I) a requirement that the liquefied natural gas import 
     facility offer service to customers other than the applicant, 
     or any affiliate of the applicant, securing the order;
       ``(II) any regulation of the rates, charges, terms, or 
     conditions of service of the liquefied natural gas import 
     facility; or
       ``(III) a requirement to file with the Commission schedules 
     or contracts related to the rates, charges, terms, or 
     conditions of service of the liquefied natural gas import 
     facility.
       ``(4) An order issued for a liquefied natural gas import 
     facility that also offers service to customers on an open 
     access basis shall not result in subsidization of expansion 
     capacity by existing customers, degradation of service to 
     existing customers, or undue discrimination against existing 
     customers as to their terms or conditions of service at the 
     facility, as all of those terms are defined by the 
     Commission.''.

     SEC. 382. NEW NATURAL GAS STORAGE FACILITIES.

       Section 4 of the Natural Gas Act (15 U.S.C. 717c) is 
     amended by adding at the end the following:
       ``(f)(1) In exercising its authority under this Act or the 
     Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the 
     Commission may authorize a natural gas company (or any person 
     that will be a natural gas company on completion of any 
     proposed construction) to provide storage and storage-related 
     services at market-based rates for new storage capacity 
     placed in service after the date of enactment of the Energy 
     Policy Act of 2005, notwithstanding the fact that the company 
     is unable to demonstrate that the company lacks market power, 
     if the Commission determines that--
       ``(A) market-based rates are in the public interest and 
     necessary to encourage the construction of storage capacity 
     in areas needing storage services; and
       ``(B) customers are adequately protected.
       ``(2) The Commission shall ensure that reasonable terms and 
     conditions are in place to protect consumers.
       ``(3) If the Commission authorizes a natural gas company to 
     charge market-based rates under this subsection, the 
     Commission shall review periodically (but not more frequently 
     than triennially) whether the market-based rate is just, 
     reasonable, and not unduly discriminatory or preferential.''.

     SEC. 383. PROCESS COORDINATION; HEARINGS; RULES OF 
                   PROCEDURES.

       Section 15 of the Natural Gas Act (15 U.S.C. 717n) is 
     amended--
       (1) by striking the section heading and inserting the 
     following:


        ``process coordination; hearings; rules of procedure'';

       (2) by redesignating subsections (a) and (b) as subsections 
     (e) and (f), respectively;
       (3) by striking ``Sec. 15.'' and inserting the following:
       ``Sec. 15. (a) In this section, the term `Federal 
     authorization'--
       ``(1) means any authorization required under Federal law 
     with respect to an application for authorization under 
     section 3 or a certificate of public convenience and 
     necessity under section 7; and
       ``(2) includes any permits, special use authorizations, 
     certifications, opinions, or other approvals as may be 
     required under Federal law with respect to an application for 
     authorization under section 3 or a certificate of public 
     convenience and necessity under section 7.
       ``(b)(1) With respect to an application for Federal 
     authorization, the Commission shall, unless the Commission 
     orders otherwise, be the lead agency for purposes of 
     complying with the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).
       ``(2) As lead agency, the Commission, in consultation with 
     affected agencies, shall prepare a single environmental 
     review document, which shall be used as a basis for all 
     decisions under Federal law on--
       ``(A) an application for authorization under section 3; or
       ``(B) a certificate of public convenience and necessity 
     under section 7.
       ``(c)(1) The Commission shall, in consultation with 
     agencies responsible for Federal authorizations, and with due 
     consideration of recommendations by the agencies, establish a 
     schedule for all Federal authorizations required to be 
     completed before an application under section 3 or 7 may be 
     approved.
       ``(2) In establishing a schedule, the Commission shall 
     comply with applicable schedules established by Federal law.
       ``(3) All Federal and State agencies with jurisdiction over 
     natural gas infrastructure shall seek to coordinate their 
     proceedings within the timeframes established by the 
     Commission with respect to an application for authorization 
     under section 3 or a certificate of public convenience and 
     necessity under section 7.
       ``(d)(1) In a case in which an administrative agency or 
     officer has failed to act by the deadline established by the 
     Commission under this section for deciding whether to issue 
     the authorization, the applicant or any State in which the 
     facility would be located may file an appeal with the 
     President, who shall, in consultation with the affected 
     agency, take action on the pending application.
       ``(2) Based on the overall record and in consultation with 
     the affected agency, the President may--
       ``(A) issue the necessary authorization with any 
     appropriate conditions; or
       ``(B) deny the application.
       ``(3) Not later than 90 days after the filing of an appeal, 
     the President shall issue a decision as to that appeal.
       ``(4) In making a decision under this subsection, the 
     President shall comply with applicable requirements of 
     Federal law, including--
       ``(A) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.)
       ``(B) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(C) the National Forest Management Act of 1976 (16 U.S.C. 
     472a et seq.);
       ``(D) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       ``(E) the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1701 et seq.);
       ``(F) the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1451 et seq.); and
       ``(G) the Clean Air Act (42 U.S.C. 7401 et seq.).''.

     SEC. 384. PENALTIES.

       (a) Criminal Penalties.--
       (1) Natural gas act.--Section 21 of the Natural Gas Act (15 
     U.S.C. 717t) is amended--
       (A) in subsection (a)--
       (i) by striking ``$5,000'' and inserting ``$1,000,000''; 
     and-
       (ii) by striking ``two years'' and inserting ``5 years''; 
     and
       (B) in subsection (b), by striking ``$500'' and inserting 
     ``$50,000''.
       (2) Natural gas policy act of 1978.--Section 504(c) of the 
     Natural Gas Policy Act of 1978 (15 U.S.C. 3414(c)) is 
     amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``$5,000'' and 
     inserting ``$1,000,000'';
       (ii) in subparagraph (B), by striking ``two years'' and 
     inserting ``5 years''; and
       (B) in paragraph (2), by striking ``$500 for each 
     violation'' and inserting ``$50,000 for each day on which the 
     offense occurs''.
       (b) Civil Penalties.--
       (1) Natural gas act.--The Natural Gas Act (15 U.S.C. 717 et 
     seq.) is amended--
       (A) by redesignating sections 22 through 24 as sections 24 
     through 26, respectively; and
       (B) by inserting after section 21 (15 U.S.C. 717t) the 
     following:


                       ``civil penalty authority

       ``Sec. 22. (a) Any person that violates this Act, or any 
     rule, regulation, restriction, condition, or order made or 
     imposed by the Commission under authority of this Act, shall 
     be subject to a civil penalty of not more than $1,000,000 per 
     day per violation for as long as the violation continues.
       ``(b) The penalty shall be assessed by the Commission after 
     notice and opportunity for public hearing.
       ``(c) In determining the amount of a proposed penalty, the 
     Commission shall take into consideration the nature and 
     seriousness of the violation and the efforts to remedy the 
     violation.''.
       (2) Natural gas policy act of 1978.--Section 504(b)(6)(A) 
     of the Natural Gas Policy Act of 1978 (15 U.S.C. 
     3414(b)(6)(A)) is amended--
       (A) in clause (i), by striking ``$5,000'' and inserting 
     ``$1,000,000''; and
       (B) in clause (ii), by striking ``$25,000'' and inserting 
     ``$1,000,000''.

     SEC. 385. MARKET MANIPULATION.

       The Natural Gas Act is amended by inserting after section 4 
     (15 U.S.C. 717c) the following:


                  ``prohibition on market manipulation

       ``Sec. 4A. It shall be unlawful for any entity, directly or 
     indirectly, to use or employ, in connection with the purchase 
     or sale of natural gas or the purchase or sale of 
     transportation services subject to the jurisdiction of the 
     Commission, any manipulative or deceptive device or 
     contrivance (as those terms are used in section 10(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) in 
     contravention of such rules and regulations as the Commission 
     may prescribe as necessary in the public interest or for the 
     protection of natural gas ratepayers.''

     SEC. 386. NATURAL GAS MARKET TRANSPARENCY RULES.

       The Natural Gas Act (15 U.S.C. 717 et seq.) (as amended by 
     section 385(b)(1)) is amended by inserting after section 22 
     the following:


                ``natural gas market transparency rules

       ``Sec. 23. (a)(1) The Commission may issue such rules as 
     the Commission considers to be

[[Page 12435]]

     appropriate to establish an electronic information system to 
     provide the Commission and the public with access to such 
     information as is necessary to facilitate price transparency 
     and participation in markets for the sale or transportation 
     of natural gas in interstate commerce.
       ``(2) The system under paragraph (1) shall provide, on a 
     timely basis, information about the availability and prices 
     of natural gas sold at wholesale and in interstate commerce 
     to the Commission, State commissions, buyers and sellers of 
     wholesale natural gas, and the public.
       ``(3) The Commission may--
       ``(A) obtain information described in paragraph (2) from 
     any market participant; and
       ``(B) rely on an entity other than the Commission to 
     receive and make public the information.
       ``(b)(1) Rules described in subsection (a)(1), if adopted, 
     shall exempt from disclosure information the Commission 
     determines would, if disclosed, be detrimental to the 
     operation of an effective market or jeopardize system 
     security.
       ``(2) In determining the information to be made available 
     under this section and time to make the information 
     available, the Commission shall seek to ensure that consumers 
     and competitive markets are protected from the adverse 
     effects of potential collusion or other anticompetitive 
     behaviors that can be facilitated by untimely public 
     disclosure of transaction-specific information.
       ``(c)(1) This section shall not affect the exclusive 
     jurisdiction of the Commodity Futures Trading Commission with 
     respect to accounts, agreements, contracts, or transactions 
     in commodities under the Commodity Exchange Act (7 U.S.C. 1 
     et seq.).
       ``(2) Any request for information to a designated contract 
     market, registered derivatives transaction execution 
     facility, board of trade, exchange, or market involving 
     accounts, agreements, contracts, or transactions in 
     commodities (including natural gas, electricity and other 
     energy commodities) within the exclusive jurisdiction of the 
     Commodity Futures Trading Commission shall be directed to the 
     Commodity Futures Trading Commission, which shall cooperate 
     in responding to any information request by the Commission.
       ``(d) In carrying out this section, the Commission shall 
     not--
       ``(1) compete with, or displace from the market place, any 
     price publisher (including any electronic price publisher);
       ``(2) regulate price publishers (including any electronic 
     price publisher); or
       ``(3) impose any requirements on the publication of 
     information by price publishers (including any electronic 
     price publisher).
       ``(e)(1) The Commission shall not condition access to 
     interstate pipeline transportation on the reporting 
     requirements of this section.
       ``(2) The Commission shall not require natural gas 
     producers, processors, or users who have a de minimis market 
     presence to comply with the reporting requirements of this 
     section.
       ``(f)(1) Except as provided in paragraph (2), no person 
     shall be subject to any civil penalty under this section with 
     respect to any violation occurring more than 3 years before 
     the date on which the person is provided notice of the 
     proposed penalty under section 22(b).
       ``(2) Paragraph (1) shall not apply in any case in which 
     the Commission finds that a seller that has entered into a 
     contract for the transportation or sale of natural gas 
     subject to the jurisdiction of the Commission has engaged in 
     fraudulent market manipulation activities materially 
     affecting the contract in violation of section 4A.''.

     SEC. 387. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY 
                   DETERMINATION UNDER THE COASTAL ZONE MANAGEMENT 
                   ACT OF 1972.

       (a) In General.--Section 319 of the Coastal Zone Management 
     Act of 1972 (16 U.S.C. 1465) is amended to read as follows:


                       ``appeals to the secretary

       ``Sec. 319. (a) Notice.--Not later than 30 days after the 
     date of the filing of an appeal to the Secretary of a 
     consistency determination under section 307, the Secretary 
     shall publish an initial notice in the Federal Register.
       ``(b) Closure of Record.--
       ``(1) In general.--Not later than the end of the 270-day 
     period beginning on the date of publication of an initial 
     notice under subsection (a), except as provided in paragraph 
     (3), the Secretary shall immediately close the decision 
     record and receive no more filings on the appeal.
       ``(2) Notice.--After closing the administrative record, the 
     Secretary shall immediately publish a notice in the Federal 
     Register that the administrative record has been closed.
       ``(3) Exception.--
       ``(A) In general.--Subject to subparagraph (B), during the 
     270-day period described in paragraph (1), the Secretary may 
     stay the closing of the decision record--
       ``(i) for a specific period mutually agreed to in writing 
     by the appellant and the State agency; or
       ``(ii) as the Secretary determines necessary to receive, on 
     an expedited basis--

       ``(I) any supplemental information specifically requested 
     by the Secretary to complete a consistency review under this 
     Act; or
       ``(II) any clarifying information submitted by a party to 
     the proceeding related to information already existing in the 
     sole record.

       ``(B) Applicability.--The Secretary may only stay the 270-
     day period described in paragraph (1) for a period not to 
     exceed 60 days.
       ``(c) Deadline for Decision.--
       ``(1) In general.--Not later than 90 days after the date of 
     publication of a Federal Register notice stating when the 
     decision record for an appeal has been closed, the Secretary 
     shall issue a decision or publish a notice in the Federal 
     Register explaining why a decision cannot be issued at that 
     time.
       ``(2) Subsequent decision.--Not later than 45 days after 
     the date of publication of a Federal Register notice 
     explaining why a decision cannot be issued within the 90-day 
     period, the Secretary shall issue a decision.''.

     SEC. 388. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in cooperation and 
     consultation with the Secretary of Transportation, the 
     Secretary of Homeland Security, the Federal Energy Regulatory 
     Commission, and the Governors of the Coastal States, shall 
     convene not less than 3 forums on liquefied natural gas.
       (b) Requirements.--The forums shall--
       (1) be located in areas where liquefied natural gas 
     facilities are under consideration;
       (2) be designed to foster dialogue among Federal officials, 
     State and local officials, the general public, independent 
     experts, and industry representatives; and
       (3) at a minimum, provide an opportunity for public 
     education and dialogue on--
       (A) the role of liquefied natural gas in meeting current 
     and future United States energy supply requirements and 
     demand, in the context of the full range of energy supply 
     options;
       (B) the Federal and State siting and permitting processes;
       (C) the potential risks and rewards associated with 
     importing liquefied natural gas;
       (D) the Federal safety and environmental requirements 
     (including regulations) applicable to liquefied natural gas;
       (E) prevention, mitigation, and response strategies for 
     liquefied natural gas hazards; and
       (F) additional issues as appropriate.
       (c) Purpose.--The purpose of the forums shall be to 
     identify and develop best practices for addressing the issues 
     and challenges associated with liquefied natural gas imports, 
     building on existing cooperative efforts.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 389. PROHIBITION OF TRADING AND SERVING BY CERTAIN 
                   PERSONS.

       Section 20 of the Natural Gas Act (15 U.S.C. 717s) is 
     amended by adding at the end the following:
       ``(d) In any proceedings under subsection (a), the court 
     may prohibit, conditionally or unconditionally, and 
     permanently or for such period of time as the court 
     determines, any person who is engaged or has engaged in 
     practices constituting a violation of section 4A (including 
     related rules and regulations) from--
       ``(1) acting as an officer or director of a natural gas 
     company; or
       ``(2) engaging in the business of--
       ``(A) the purchasing or selling of natural gas; or
       ``(B) the purchasing or selling of transmission services 
     subject to the jurisdiction of the Commission.''.

             Subtitle F--Federal Coalbed Methane Regulation

     SEC. 391. FEDERAL COALBED METHANE REGULATION.

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

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

     SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Clean Coal Power Initiative.--There is authorized to be 
     appropriated to the Secretary to carry out the activities 
     authorized by this subtitle $200,000,000 for each of fiscal 
     years 2006 through 2014, to remain available until expended.
       (b) Report.--Not later than March 31, 2006, the Secretary 
     shall submit to Congress a report that includes an 8-year 
     plan containing--
       (1) a detailed assessment of whether the aggregate 
     assistance levels provided under subsection (a) are the 
     appropriate assistance levels for the clean coal power 
     initiative;
       (2) a detailed description of how proposals for assistance 
     under the clean coal power initiative 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

[[Page 12436]]

     will be pursued under the clean coal power initiative; and
       (4) a detailed description of how the clean coal power 
     initiative will avoid problems enumerated in Government 
     Accountability Office reports on the Clean Coal Technology 
     Program of the Department, including problems that have 
     resulted in unspent funds and projects that failed either 
     financially or scientifically.

     SEC. 402. PROJECT CRITERIA.

       (a) In General.--To be eligible to receive assistance under 
     this subtitle, a project shall advance efficiency, 
     environmental performance, and cost competitiveness well 
     beyond the level of technologies that are in commercial 
     service or have been demonstrated on a scale that the 
     Secretary determines is sufficient to demonstrate that 
     commercial service is viable as of the date of enactment of 
     this Act.
       (b) Technical Criteria for Clean Coal Power Initiative.--
       (1) Gasification projects.--
       (A) In General.--In allocating the funds made available 
     under section 401(a), the Secretary shall ensure that at 
     least 80 percent of the funds are used only to fund projects 
     on coal-based gasification technologies, including--
       (i) gasification combined cycle;
       (ii) gasification fuel cells;
       (iii) gasification coproduction; and
       (iv) hybrid gasification or combustion.
       (B) Technical milestones.--
       (i) Periodic determination.--

       (I) In general.--The Secretary shall periodically set 
     technical milestones specifying the emission and thermal 
     efficiency levels that coal gasification projects under this 
     subtitle shall be designed, and reasonably expected, to 
     achieve.
       (II) Restrictive milestones.--The technical milestones 
     shall become more restrictive during the period of the clean 
     coal power initiative.

       (ii) 2020 goals.--The Secretary shall establish the 
     periodic milestones so as to achieve by the year 2020 coal 
     gasification projects able--

       (I) to remove at least 99 percent of sulfur dioxide;
       (II) to emit not more than .05 lbs of NOx per 
     million Btu;
       (III) to achieve substantial reductions in mercury 
     emissions; and
       (IV) to achieve a thermal efficiency of at least--

       (aa) 60 percent for coal of more than 9,000 Btu;
       (bb) 59 percent for coal of 7,000 to 9,000 Btu; and
       (cc) 50 percent for coal of less than 7,000 Btu.
       (2) Other projects.--
       (A) Allocation of funds.--The Secretary shall ensure that 
     up to 20 percent of the funds made available under section 
     401(a) are used to fund projects other than those described 
     in paragraph (1).
       (B) Technical milestones.--
       (i) Periodic determination.--

       (I) In general.--The Secretary shall periodically establish 
     technical milestones specifying the emission and thermal 
     efficiency levels that projects funded under this paragraph 
     shall be designed, and reasonably expected, to achieve.
       (II) Restrictive milestones.--The technical milestones 
     shall become more restrictive during the period of the clean 
     coal power initiative.

       (ii) 2010 goals.--The Secretary shall set the periodic 
     milestones so as to achieve by the year 2010 projects able--

       (I) to remove at least 97 percent of sulfur dioxide;
       (II) to emit no more than .08 lbs of NOx per 
     million Btu;
       (III) to achieve substantial reductions in mercury 
     emissions; and
       (IV) to achieve a thermal efficiency of at least--

       (aa) 45 percent for coal of more than 9,000 Btu;
       (bb) 44 percent for coal of 7,000 to 9,000 Btu; and
       (cc) 40 percent for coal of less than 7,000 Btu.
       (3) Consultation.--Before setting the technical milestones 
     under paragraphs (1)(B) and (2)(B), the Secretary shall 
     consult with--
       (A) the Administrator of the Environmental Protection 
     Agency; and
       (B) interested entities, including--
       (i) coal producers;
       (ii) industries using coal;
       (iii) organizations that promote coal or advanced coal 
     technologies;
       (iv) environmental organizations; and
       (v) organizations representing workers.
       (4) Existing units.--In the case of projects at units in 
     existence on the date of enactment of this Act, in lieu of 
     the thermal efficiency requirements described in paragraphs 
     (1)(B)(ii)(IV) and (2)(B)(ii)(IV), the milestones shall be 
     designed to achieve an overall thermal design efficiency 
     improvement, compared to the efficiency of the unit as 
     operated, of not less than--
       (A) 7 percent for coal of more than 9,000 Btu;
       (B) 6 percent for coal of 7,000 to 9,000 Btu; or
       (C) 4 percent for coal of less than 7,000 Btu.
       (5) Administration.--
       (A) Elevation of site.--In evaluating project proposals to 
     achieve thermal efficiency levels established under 
     paragraphs (1)(B)(i) and (2)(B)(i) and in determining 
     progress towards thermal efficiency milestones under 
     paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4), the 
     Secretary shall take into account and make adjustments for 
     the elevation of the site at which a project is proposed to 
     be constructed.
       (B) Applicability of milestones.--The thermal efficiency 
     milestones under paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), 
     and (4) shall not apply to projects that separate and capture 
     at least 50 percent of the potential emissions of carbon 
     dioxide by a facility.
       (C) Priority.--In carrying out this subtitle, the Secretary 
     shall give priority to projects that include, as part of the 
     project, the separation and capture of carbon dioxide.
       (c) Financial Criteria.--The Secretary shall not provide 
     financial assistance under this subtitle for a project unless 
     the recipient documents to the satisfaction of the Secretary 
     that--
       (1) the receipt of Federal assistance for the project is 
     not required for the recipient to be financially viable;
       (2) the recipient will provide sufficient information to 
     the Secretary to enable the Secretary to ensure that the 
     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, as determined by the 
     Secretary--
       (1) meet the requirements of subsections (a), (b), and (c); 
     and
       (2) are likely--
       (A) to achieve overall cost reductions in the use of coal 
     to generate useful forms of energy;
       (B) to 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
       (C) to demonstrate methods and equipment that are 
     applicable to 25 percent of the electricity generating 
     facilities, using various types of coal, that use coal as the 
     primary feedstock as of the date of enactment of this Act.
       (e) Cost-Sharing.--In carrying out this subtitle, the 
     Secretary shall require cost sharing in accordance with 
     section 1002.
       (f) Applicability.--No technology, or level of emission 
     reduction, solely by reason of the use of the technology, or 
     the achievement of the emission reduction, by 1 or more 
     facilities receiving assistance under this Act, shall be 
     considered to be--
       (1) adequately demonstrated for purposes of section 111 of 
     the Clean Air Act (42 U.S.C. 7411);
       (2) achievable for purposes of section 169 of that Act (42 
     U.S.C. 7479); or
       (3) achievable in practice for purposes of section 171 of 
     that Act (42 U.S.C. 7501).

     SEC. 403. REPORT.

       Not later than 1 year after the date of enactment of this 
     Act, and once every 2 years thereafter through 2012, the 
     Secretary, in consultation with other appropriate Federal 
     agencies, shall submit to Congress a report describing--
       (1)(A) the technical milestones described in section 402; 
     and
       (B) how those milestones ensure progress toward meeting the 
     requirements of subsections (b)(1)(B) and (b)(2)(B) of 
     section 402; and
       (2) the status of projects that receive assistance under 
     this subtitle.

     SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.

       (a) In General.--As part of the clean coal power 
     initiative, the Secretary shall award competitive, merit-
     based grants to institutions of higher education for the 
     establishment of centers of excellence for energy systems of 
     the future.
       (b) Basis for Grants.-- The Secretary shall award grants 
     under this section to institutions of higher education that 
     show the greatest potential for advancing new clean coal 
     technologies.

     SEC. 405. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.

       (a) In General.--Subject to the availability of 
     appropriations, the Secretary may provide loan guarantees for 
     a project to produce energy from coal of less than 7,000 Btu/
     lb using appropriate advanced integrated gasification 
     combined cycle technology, including repowering of existing 
     facilities, that--
       (1) is combined with wind and other renewable sources;
       (2) minimizes and offers the potential to sequester carbon 
     dioxide emissions; and
       (3) provides a ready source of hydrogen for near-site fuel 
     cell demonstrations.
       (b) Requirements.--The facility--
       (1) may be built in stages;
       (2) shall have a combined output of at least 200 megawatts 
     at successively more competitive rates; and
       (3) shall be located in the Upper Great Plains.
       (c) Technical Criteria.--Technical criteria described in 
     section 402(b) shall apply to the facility.

[[Page 12437]]

       (d) Federal Cost Share.--The Federal cost share for the 
     facility shall not exceed 50 percent.
       (e) Investment Tax Credits.--
       (1) In general.--The loan guarantees provided under this 
     section do not preclude the facility from receiving an 
     allocation for investment tax credits under section 48A of 
     the Internal Revenue Code of 1986.
       (2) Other funding.--Use of the investment tax credit 
     described in paragraph (1) does not prohibit the use of other 
     clean coal program funding.

     SEC. 406. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY 
                   IN SERVICE.

       (a) Definitions.--In this section:
       (1) Borrower.--The term ``borrower'' means the owner of the 
     clean coal technology plant.
       (2) Clean coal technology plant.--The term ``clean coal 
     technology plant'' means the plant located near Healy, 
     Alaska, constructed under Department cooperative agreement 
     number DE-FC-22-91PC90544.
       (3) Cost of a direct loan.--The term ``cost of a direct 
     loan'' has the meaning given the term in section 502(5)(B) of 
     the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(B)).
       (b) Authorization.--Subject to subsection (c), the 
     Secretary shall use amounts made available under subsection 
     (e) to provide the cost of a direct loan to the borrower for 
     purposes of placing the clean coal technology plant into 
     reliable operation for the generation of electricity.
       (c) Requirements.--
       (1) Maximum loan amount.--The amount of the direct loan 
     provided under subsection (b) shall not exceed $80,000,000.
       (2) Determinations by secretary.--Before providing the 
     direct loan to the borrower under subsection (b), the 
     Secretary shall determine that--
       (A) the plan of the borrower for placing the clean coal 
     technology plant in reliable operation has a reasonable 
     prospect of success;
       (B) the amount of the loan (when combined with amounts 
     available to the borrower from other sources) will be 
     sufficient to carry out the project; and
       (C) there is a reasonable prospect that the borrower will 
     repay the principal and interest on the loan.
       (3) Interest; term.--The direct loan provided under 
     subsection (b) shall bear interest at a rate and for a term 
     that the Secretary determines appropriate, after consultation 
     with the Secretary of the Treasury, taking into account the 
     needs and capacities of the borrower and the prevailing rate 
     of interest for similar loans made by public and private 
     lenders.
       (4) Additional terms and conditions.--The Secretary may 
     require any other terms and conditions that the Secretary 
     determines to be appropriate.
       (d) Use of Payments.--The Secretary shall retain any 
     payments of principal and interest on the direct loan 
     provided under subsection (b) to support energy research and 
     development activities, to remain available until expended, 
     subject to any other conditions in an applicable 
     appropriations Act.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to provide the 
     cost of a direct loan under subsection (b).

     SEC. 407. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION 
                   PROJECT.

       (a) In General.--Subject to the availability of 
     appropriations, the Secretary shall carry out a demonstration 
     project to produce energy from coal (of not more than 9,000 
     Btu/lb) mined in the western United States using integrated 
     gasification combined cycle technology, including repowering 
     of existing facilities, that is capable of sequestering 
     carbon dioxide emissions (referred to in this section as the 
     ``demonstration project'').
       (b) Location.--The demonstration project shall be located 
     in a western State at an altitude of greater than 4,000 feet 
     above sea level.
       (c) Cost Sharing.--The Federal share of the cost of the 
     demonstration project shall be determined in accordance with 
     section 1002.
       (d) Loan Guarantees.--Notwithstanding title XIV, the 
     demonstration project shall not be eligible for Federal loan 
     guarantees.

                    Subtitle B--Federal Coal Leases

     SEC. 411. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

       Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is 
     amended--
       (1) in the first sentence, by striking ``Any person'' and 
     inserting the following: ``(a)(1) Except as provided in 
     paragraph (3), on a finding by the Secretary under paragraph 
     (2), any person'';
       (2) in the second sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(b) The Secretary'';
       (3) in the third sentence, by striking ``The minimum'' and 
     inserting the following:
       ``(c) The minimum'';
       (4) in subsection (a) (as designated by paragraph (1))--
       (A) by striking ``upon'' and all that follows and inserting 
     the following: ``secure modifications of the original coal 
     lease by including additional coal lands or coal deposits 
     contiguous or cornering to those embraced in the lease.''; 
     and
       (B) by adding at the end the following:
       ``(2) A finding referred to in paragraph (1) is a finding 
     by the Secretary that the modifications--
       ``(A) would be in the interest of the United States;
       ``(B) would not displace a competitive interest in the 
     lands; and
       ``(C) would not include lands or deposits that can be 
     developed as part of another potential or existing operation.
       ``(3) In no case shall the total area added by 
     modifications to an existing coal lease under paragraph (1)--
       ``(A) exceed 320 acres; or
       ``(B) add acreage larger than that in the original 
     lease.''.

     SEC. 412. 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--
       ``(i) the longer period will ensure the maximum economic 
     recovery of a coal deposit; or
       ``(ii) the longer period is in the interest of the orderly, 
     efficient, or economic development of a coal resource.''.

     SEC. 413. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

       Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) 
     is amended--
       (1) in the first sentence, by striking ``Each lease'' and 
     inserting the following: ``(1) Each lease'';
       (2) in the second sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(2) The Secretary'';
       (3) in the third sentence, by striking ``Such advance 
     royalties'' and inserting the following:
       ``(3) Advance royalties described in paragraph (2)'';
       (4) in the seventh sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(6) The Secretary'';
       (5) in the last sentence, by striking ``Nothing'' and 
     inserting the following:
       ``(7) Nothing'';
       (6) by striking the fourth, fifth, and sixth sentences; and
       (7) by inserting after paragraph (3) (as designated by 
     paragraph (3)) the following:
       ``(4) The aggregate number of years during the period of 
     any lease for which advance royalties may be accepted in lieu 
     of the condition of continued operation shall not exceed 20 
     years.
       ``(5) The amount of any production royalty paid for any 
     year shall be reduced (but not below 0) by the amount of any 
     advance royalties paid under a lease described in paragraph 
     (4) to the extent that the advance royalties have not been 
     used to reduce production royalties for a prior year.''.

     SEC. 414. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL 
                   LEASE OPERATION AND RECLAMATION PLAN.

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

     SEC. 415. APPLICATION OF AMENDMENTS.

       (a) In General.--The amendments made by this subtitle apply 
     to any coal lease issued on or after the date of enactment of 
     this Act.
       (b) Coal Leases Issued Before Date of Enactment.--With 
     respect to any coal lease issued before the date of enactment 
     of this Act, the amendments made by this subtitle apply--
       (1) on the date of readjustment of the lease as provided 
     under section 7(a) of the Mineral Leasing Act (30 U.S.C. 
     207); or
       (2) on request by the lessee, prior to that date.

                         TITLE V--INDIAN ENERGY

     SEC. 501. SHORT TITLE.

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

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

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


             ``office of indian energy policy and programs

       ``Sec. 217. (a) Establishment.--
       ``(1) There is established within the Department an Office 
     of Indian Energy Policy and Programs (referred to in this 
     section as the `Office').
       ``(2) The Office shall be headed by a Director, to be 
     appointed by the Secretary and compensated at a rate equal to 
     that of level IV of the Executive Schedule under section 5315 
     of title 5, United States Code.
       ``(b) Duties of Director.--The Director, in accordance with 
     Federal policies promoting Indian self-determination and the 
     purposes of this Act, shall provide, direct, foster, 
     coordinate, and implement energy planning, education, 
     management, conservation, and delivery programs of the 
     Department that--
       ``(1) promote Indian tribal energy development, efficiency, 
     and use;
       ``(2) reduce or stabilize energy costs;
       ``(3) enhance and strengthen Indian tribal energy and 
     economic infrastructure relating to natural resource 
     development and electrification; and
       ``(4) bring electrical power and service to Indian land and 
     the homes of tribal members that are--

[[Page 12438]]

       ``(A) located on Indian land; or
       ``(B) acquired, constructed, or improved (in whole or in 
     part) with Federal funds.''.
       (b) Conforming Amendments.--
       (1) The table of contents of the Department of Energy 
     Organization Act (42 U.S.C. prec. 7101) is amended--
       (A) in the item relating to section 209, by striking 
     ``Section'' and inserting ``Sec.''; and
       (B) by striking the items relating to sections 213 through 
     216 and inserting the following:
``Sec. 213. Establishment of policy for National Nuclear Security 
              Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
              intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.

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

     SEC. 503. INDIAN ENERGY.

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

                      ``TITLE XXVI--INDIAN ENERGY

     ``SEC. 2601. DEFINITIONS.

       ``In this title:
       ``(1) The term `Director' means the Director of the Office 
     of Indian Energy Policy and Programs, Department of Energy.
       ``(2) The term `Indian land' means--
       ``(A) any land located within the boundaries of an Indian 
     reservation, pueblo, or rancheria;
       ``(B) any land not located within the boundaries of an 
     Indian reservation, pueblo, or rancheria, the title to which 
     is held--
       ``(i) in trust by the United States for the benefit of an 
     Indian tribe or an individual Indian;
       ``(ii) by an Indian tribe or an individual Indian, subject 
     to restriction against alienation under laws of the United 
     States; or
       ``(iii) by a dependent Indian community; and
       ``(C) land that is owned by an Indian tribe and was 
     conveyed by the United States to a Native Corporation 
     pursuant to the Alaska Native Claims Settlement Act (43 
     U.S.C. 1601 et seq.), or that was conveyed by the United 
     States to a Native Corporation in exchange for such land.
       ``(3) The term `Indian reservation' includes--
       ``(A) an Indian reservation in existence in any State as of 
     the date of enactment of this paragraph;
       ``(B) a public domain Indian allotment; and
       ``(C) a dependent Indian community located within the 
     borders of the United States, regardless of whether the 
     community is located--
       ``(i) on original or acquired territory of the community; 
     or
       ``(ii) within or outside the boundaries of any particular 
     State.
       ``(4)(A) The term `Indian tribe' has the meaning given the 
     term in section 4 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b).
       ``(B) For the purpose of paragraph (12) and sections 
     2603(b)(1)(C) and 2604, the term `Indian tribe' does not 
     include any Native Corporation.
       ``(5) The term `integration of energy resources' means any 
     project or activity that promotes the location and operation 
     of a facility (including any pipeline, gathering system, 
     transportation system or facility, or electric transmission 
     or distribution facility) on or near Indian land to process, 
     refine, generate electricity from, or otherwise develop 
     energy resources on, Indian land.
       ``(6) The term `Native Corporation' has the meaning given 
     the term in section 3 of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1602).
       ``(7) The term `organization' means a partnership, joint 
     venture, limited liability company, or other unincorporated 
     association or entity that is established to develop Indian 
     energy resources.
       ``(8) The term `Program' means the Indian energy resource 
     development program established under section 2602(a).
       ``(9) The term `Secretary' means the Secretary of the 
     Interior.
       ``(10) The term `sequestration' means the long-term 
     separation, isolation, or removal of greenhouse gases from 
     the atmosphere, including through a biological or geologic 
     method such as reforestation or an underground reservoir.
       ``(11) The term `tribal energy resource development 
     organization' means an organization of 2 or more entities, at 
     least 1 of which is an Indian tribe, that has the written 
     consent of the governing bodies of all Indian tribes 
     participating in the organization to apply for a grant, loan, 
     or other assistance under section 2602.
       ``(12) The term `tribal land' means any land or interests 
     in land owned by any Indian tribe, title to which is held in 
     trust by the United States, or is subject to a restriction 
     against alienation under laws of the United States.

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

       ``(a) Department of the Interior Program.--
       ``(1) To assist Indian tribes in the development of energy 
     resources and further the goal of Indian self-determination, 
     the Secretary shall establish and implement an Indian energy 
     resource development program to assist consenting Indian 
     tribes and tribal energy resource development organizations 
     in achieving the purposes of this title.
       ``(2) In carrying out the Program, the Secretary shall--
       ``(A) provide development grants to Indian tribes and 
     tribal energy resource development organizations for use in 
     developing or obtaining the managerial and technical capacity 
     needed to develop energy resources on Indian land, and to 
     properly account for resulting energy production and 
     revenues;
       ``(B) provide grants to Indian tribes and tribal energy 
     resource development organizations for use in carrying out 
     projects to promote the integration of energy resources, and 
     to process, use, or develop those energy resources, on Indian 
     land; and
       ``(C) provide low-interest loans to Indian tribes and 
     tribal energy resource development organizations for use in 
     the promotion of energy resource development on Indian land 
     and integration of energy resources.
       ``(3) There are authorized to be appropriated to carry out 
     this subsection such sums as are necessary for each of fiscal 
     years 2006 through 2016.
       ``(b) Department of Energy Indian Energy Education Planning 
     and Management Assistance Program.--
       ``(1) The Director shall establish programs to assist 
     consenting Indian tribes in meeting energy education, 
     research and development, planning, and management needs.
       ``(2) In carrying out this subsection, the Director may 
     provide grants, on a competitive basis, to an Indian tribe or 
     tribal energy resource development organization for use in 
     carrying out--
       ``(A) energy, energy efficiency, and energy conservation 
     programs;
       ``(B) studies and other activities supporting tribal 
     acquisitions of energy supplies, services, and facilities, 
     including the creation of tribal utilities to assist in 
     securing electricity to promote electrification of homes and 
     businesses on Indian land;
       ``(C) planning, construction, development, operation, 
     maintenance, and improvement of tribal electrical generation, 
     transmission, and distribution facilities located on Indian 
     land; and
       ``(D) development, construction, and interconnection of 
     electric power transmission facilities located on Indian land 
     with other electric transmission facilities.
       ``(3)(A) The Director shall develop a program to support 
     and implement research projects that provide Indian tribes 
     with opportunities to participate in carbon sequestration 
     practices on Indian land, including--
       ``(i) geologic sequestration;
       ``(ii) forest sequestration;
       ``(iii) agricultural sequestration; and
       ``(iv) any other sequestration opportunities the Director 
     considers to be appropriate.
       ``(B) The activities carried out under subparagraph (A) 
     shall be--
       ``(i) coordinated with other carbon sequestration research 
     and development programs conducted by the Secretary of 
     Energy;
       ``(ii) conducted to determine methods consistent with 
     existing standardized measurement protocols to account and 
     report the quantity of carbon dioxide or other greenhouse 
     gases sequestered in projects that may be implemented on 
     tribal land; and
       ``(iii) reviewed periodically to collect and distribute to 
     Indian tribes information on carbon sequestration practices 
     that will increase the sequestration of carbon without 
     threatening the social and economic well-being of Indian 
     tribes.
       ``(4)(A) The Director, in consultation with Indian tribes, 
     may develop a formula for providing grants under this 
     subsection.
       ``(B) In providing a grant under this subsection, the 
     Director shall give priority to any application received from 
     an Indian tribe with inadequate electric service (as 
     determined by the Director).
       ``(5) The Secretary of Energy may issue such regulations as 
     the Secretary determines to be necessary to carry out this 
     subsection.
       ``(6) There is authorized to be appropriated to carry out 
     this subsection $20,000,000 for each of fiscal years 2006 
     through 2016.
       ``(c) Department of Energy Loan Guarantee Program.--
       ``(1) Subject to paragraphs (2) and (4), the Secretary of 
     Energy may provide loan guarantees (as defined in section 502 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for 
     an amount equal to not more than 90 percent of the unpaid 
     principal and interest due on any loan made to an Indian 
     tribe for energy development.
       ``(2) In evaluating energy development proposals for which 
     the Secretary of Energy may provide a loan guarantee under 
     paragraph (1), the Secretary of Energy shall give priority to 
     any project that uses a new technology, such as coal 
     gasification, carbon capture and sequestration, or renewable 
     energy-based electricity generation, if competing proposals 
     are similar with respect to the

[[Page 12439]]

     level at which the proposals meet or exceed the criteria 
     established by the Secretary of Energy for the loan guarantee 
     program.
       ``(3) A loan guarantee under this subsection shall be made 
     by--
       ``(A) a financial institution subject to examination by the 
     Secretary of Energy; or
       ``(B) an Indian tribe, from funds of the Indian tribe.
       ``(4) The aggregate outstanding amount guaranteed by the 
     Secretary of Energy at any time under this subsection shall 
     not exceed $2,000,000,000.
       ``(5) The Secretary of Energy may issue such regulations as 
     the Secretary of Energy determines are necessary to carry out 
     this subsection.
       ``(6) There are authorized to be appropriated such sums as 
     are necessary to carry out this subsection, to remain 
     available until expended.
       ``(7) Not later than 1 year after the date of enactment of 
     this section, the Secretary of Energy shall submit to 
     Congress a report on the financing requirements of Indian 
     tribes for energy development on Indian land.
       ``(d) Preference.--
       ``(1) In purchasing electricity or any other energy product 
     or byproduct, a Federal agency or department may give 
     preference to an energy and resource production enterprise, 
     partnership, consortium, corporation, or other type of 
     business organization the majority of the interest in which 
     is owned and controlled by 1 or more Indian tribes.
       ``(2) In carrying out this subsection, a Federal agency or 
     department shall not--
       ``(A) pay more than the prevailing market price for an 
     energy product or byproduct; or
       ``(B) obtain less than prevailing market terms and 
     conditions.

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

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

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

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

       ``(aa) the provision shall be null and void; and

[[Page 12440]]

       ``(bb) if the Secretary determines the provision to be 
     material, the Secretary may suspend or rescind the lease, 
     business agreement, or right-of-way or take other appropriate 
     action that the Secretary determines to be in the best 
     interest of the Indian tribe;

       ``(XIII) require each lease, business agreement, and right-
     of-way to provide that it will become effective on the date 
     on which a copy of the executed lease, business agreement, or 
     right-of-way is delivered to the Secretary in accordance with 
     regulations promulgated under paragraph (8);
       ``(XIV) include citations to tribal laws, regulations, or 
     procedures, if any, that set out tribal remedies that must be 
     exhausted before a petition may be submitted to the Secretary 
     under paragraph (7)(B);
       ``(XV) specify the financial assistance, if any, to be 
     provided by the Secretary to the Indian tribe to assist in 
     implementation of the tribal energy resource agreement, 
     including environmental review of individual projects; and
       ``(XVI) in accordance with the regulations promulgated by 
     the Secretary under paragraph (8), require that the Indian 
     tribe, as soon as practicable after receipt of a notice by 
     the Indian tribe, give written notice to the Secretary of--

       ``(aa) any breach or other violation by another party of 
     any provision in a lease, business agreement, or right-of-way 
     entered into under the tribal energy resource agreement; and
       ``(bb) any activity or occurrence under a lease, business 
     agreement, or right-of-way that constitutes a violation of 
     Federal or tribal environmental laws.

       ``(C) Tribal energy resource agreements submitted under 
     paragraph (1) shall establish, and include provisions to 
     ensure compliance with, an environmental review process that, 
     with respect to a lease, business agreement, or right-of-way 
     under this section, provides for, at a minimum--
       ``(i) the identification and evaluation of all significant 
     environmental effects (as compared to a no-action 
     alternative), including effects on cultural resources;
       ``(ii) the identification of proposed mitigation measures, 
     if any, and incorporation of the mitigation measures into the 
     lease, business agreement, or right-of-way;
       ``(iii) a process for ensuring that--

       ``(I) the public is informed of, and has an opportunity to 
     comment on, the environmental impacts of the proposed action; 
     and
       ``(II) responses to relevant and substantive comments are 
     provided, before tribal approval of the lease, business 
     agreement, or right-of-way;

       ``(iv) sufficient administrative support and technical 
     capability to carry out the environmental review process; and
       ``(v) oversight by the Indian tribe of energy development 
     activities by any other party under any lease, business 
     agreement, or right-of-way entered into pursuant to the 
     tribal energy resource agreement, to determine whether the 
     activities are in compliance with the tribal energy resource 
     agreement and applicable Federal environmental laws.
       ``(D) A tribal energy resource agreement between the 
     Secretary and an Indian tribe under this subsection shall 
     include--
       ``(i) provisions requiring the Secretary to conduct a 
     periodic review and evaluation to monitor the performance of 
     the activities of the Indian tribe associated with the 
     development of energy resources under the tribal energy 
     resource agreement; and
       ``(ii) if a periodic review and evaluation, or an 
     investigation, by the Secretary of any breach or violation 
     described in a notice provided by the Indian tribe to the 
     Secretary in accordance with subparagraph (B)(iii)(XVI), 
     results in a finding by the Secretary of imminent jeopardy to 
     a physical trust asset arising from a violation of the tribal 
     energy resource agreement or applicable Federal laws, 
     provisions authorizing the Secretary to take actions 
     determined by the Secretary to be necessary to protect the 
     asset, including reassumption of responsibility for 
     activities associated with the development of energy 
     resources on tribal land until the violation and any 
     condition that caused the jeopardy are corrected.
       ``(E) Periodic review and evaluation under subparagraph (D) 
     shall be conducted on an annual basis, except that, after the 
     third annual review and evaluation, the Secretary and the 
     Indian tribe may mutually agree to amend the tribal energy 
     resource agreement to authorize the review and evaluation 
     under subparagraph (D) to be conducted once every 2 years.
       ``(3) The Secretary shall provide notice and opportunity 
     for public comment on tribal energy resource agreements 
     submitted for approval under paragraph (1).
       ``(4) If the Secretary disapproves a tribal energy resource 
     agreement submitted by an Indian tribe under paragraph (1), 
     the Secretary shall, not later than 10 days after the date of 
     disapproval--
       ``(A) notify the Indian tribe in writing of the basis for 
     the disapproval;
       ``(B) identify what changes or other actions are required 
     to address the concerns of the Secretary; and
       ``(C) provide the Indian tribe with an opportunity to 
     revise and resubmit the tribal energy resource agreement.
       ``(5) If an Indian tribe executes a lease or business 
     agreement, or grants a right-of-way, in accordance with a 
     tribal energy resource agreement approved under this 
     subsection, the Indian tribe shall, in accordance with the 
     process and requirements under regulations promulgated under 
     paragraph (8), provide to the Secretary--
       ``(A) a copy of the lease, business agreement, or right-of-
     way document (including all amendments to and renewals of the 
     document); and
       ``(B) in the case of a tribal energy resource agreement or 
     a lease, business agreement, or right-of-way that permits 
     payments to be made directly to the Indian tribe, information 
     and documentation of those payments sufficient to enable the 
     Secretary to discharge the trust responsibility of the United 
     States to enforce the terms of, and protect the rights of the 
     Indian tribe under, the lease, business agreement, or right-
     of-way.
       ``(6)(A) In carrying out this section, the Secretary 
     shall--
       ``(i) act in accordance with the trust responsibility of 
     the United States relating to mineral and other trust 
     resources; and
       ``(ii) act in good faith and in the best interests of the 
     Indian tribes.
       ``(B) Subject to the provisions of subsections (a)(2), (b), 
     and (c) waiving the requirement of Secretarial approval of 
     leases, business agreements, and rights-of-way executed 
     pursuant to tribal energy resource agreements approved under 
     this section, and the provisions of subparagraph (D), nothing 
     in this section shall absolve the United States from any 
     responsibility to Indians or Indian tribes, including, but 
     not limited to, those which derive from the trust 
     relationship or from any treaties, statutes, and other laws 
     of the United States, Executive Orders, or agreements between 
     the United States and any Indian tribe.
       ``(C) The Secretary shall continue to fulfill the trust 
     obligation of the United States to ensure that the rights and 
     interests of an Indian tribe are protected if--
       ``(i) any other party to a lease, business agreement, or 
     right-of-way violates any applicable Federal law or the terms 
     of any lease, business agreement, or right-of-way under this 
     section; or
       ``(ii) any provision in a lease, business agreement, or 
     right-of-way violates the tribal energy resource agreement 
     pursuant to which the lease, business agreement, or right-of-
     way was executed.
       ``(D)(i) In this subparagraph, the term `negotiated term' 
     means any term or provision that is negotiated by an Indian 
     tribe and any other party to a lease, business agreement, or 
     right-of-way entered into pursuant to an approved tribal 
     energy resource agreement.
       ``(ii) Notwithstanding subparagraph (B), the United States 
     shall not be liable to any party (including any Indian tribe) 
     for any negotiated term of, or any loss resulting from the 
     negotiated terms of, a lease, business agreement, or right-
     of-way executed pursuant to and in accordance with a tribal 
     energy resource agreement approved by the Secretary under 
     paragraph (2).
       ``(7)(A) In this paragraph, the term `interested party' 
     means any person (including an entity) that has demonstrated 
     that an interest of the person has sustained, or will 
     sustain, an adverse environmental impact as a result of the 
     failure of an Indian tribe to comply with a tribal energy 
     resource agreement of the Indian tribe approved by the 
     Secretary under paragraph (2).
       ``(B) After exhaustion of any tribal remedy, and in 
     accordance with regulations promulgated by the Secretary 
     under paragraph (8), an interested party may submit to the 
     Secretary a petition to review the compliance by an Indian 
     tribe with a tribal energy resource agreement of the Indian 
     tribe approved by the Secretary under paragraph (2).
       ``(C)(i) Not later than 20 days after the date on which the 
     Secretary receives a petition under subparagraph (B), the 
     Secretary shall--
       ``(I) provide to the Indian tribe a copy of the petition; 
     and
       ``(II) consult with the Indian tribe regarding any 
     noncompliance alleged in the petition.
       ``(ii) Not later than 45 days after the date on which a 
     consultation under clause (i)(II) takes place, the Indian 
     tribe shall respond to any claim made in a petition under 
     subparagraph (B).
       ``(iii) The Secretary shall act in accordance with 
     subparagraphs (D) and (E) only if the Indian tribe--
       ``(I) denies, or fails to respond to, each claim made in 
     the petition within the period described in clause (ii); or
       ``(II) fails, refuses, or is unable to cure or otherwise 
     resolve each claim made in the petition within a reasonable 
     period, as determined by the Secretary, after the expiration 
     of the period described in clause (ii).
       ``(D)(i) Not later than 120 days after the date on which 
     the Secretary receives a petition under subparagraph (B), the 
     Secretary shall determine whether the Indian tribe is not in 
     compliance with the tribal energy resource agreement.
       ``(ii) The Secretary may adopt procedures under paragraph 
     (8) authorizing an extension of time, not to exceed 120 days, 
     for making the determination under clause (i) in any case in 
     which the Secretary determines that additional time is 
     necessary to evaluate the allegations of the petition.

[[Page 12441]]

       ``(iii) Subject to subparagraph (E), if the Secretary 
     determines that the Indian tribe is not in compliance with 
     the tribal energy resource agreement, the Secretary shall 
     take such action as the Secretary determines to be necessary 
     to ensure compliance with the tribal energy resource 
     agreement, including--
       ``(I) temporarily suspending any activity under a lease, 
     business agreement, or right-of-way under this section until 
     the Indian tribe is in compliance with the approved tribal 
     energy resource agreement; or
       ``(II) rescinding approval of all or part of the tribal 
     energy resource agreement, and if all of the agreement is 
     rescinded, reassuming the responsibility for approval of any 
     future leases, business agreements, or rights-of-way 
     described in subsection (a) or (b).
       ``(E) Before taking an action described in subparagraph 
     (D)(iii), the Secretary shall--
       ``(i) make a written determination that describes the 
     manner in which the tribal energy resource agreement has been 
     violated;
       ``(ii) provide the Indian tribe with a written notice of 
     the violations together with the written determination; and
       ``(iii) before taking any action described in subparagraph 
     (D)(iii) or seeking any other remedy, provide the Indian 
     tribe with a hearing and a reasonable opportunity to attain 
     compliance with the tribal energy resource agreement.
       ``(F) An Indian tribe described in subparagraph (E) shall 
     retain all rights to appeal under any regulation promulgated 
     by the Secretary.
       ``(8) Not later than 1 year after the date of enactment of 
     the Energy Policy Act of 2005, the Secretary shall promulgate 
     regulations that implement this subsection, including--
       ``(A) criteria to be used in determining the capacity of an 
     Indian tribe under paragraph (2)(B)(i), including the 
     experience of the Indian tribe in managing natural resources 
     and financial and administrative resources available for use 
     by the Indian tribe in implementing the approved tribal 
     energy resource agreement of the Indian tribe;
       ``(B) a process and requirements in accordance with which 
     an Indian tribe may--
       ``(i) voluntarily rescind a tribal energy resource 
     agreement approved by the Secretary under this subsection; 
     and
       ``(ii) return to the Secretary the responsibility to 
     approve any future lease, business agreement, or right-of-way 
     under this subsection;
       ``(C) provisions establishing the scope of, and procedures 
     for, the periodic review and evaluation described in 
     subparagraphs (D) and (E) of paragraph (2), including 
     provisions for review of transactions, reports, site 
     inspections, and any other review activities the Secretary 
     determines to be appropriate; and
       ``(D) provisions describing final agency actions after 
     exhaustion of administrative appeals from determinations of 
     the Secretary under paragraph (7).
       ``(f) No Effect on Other Law.--Nothing in this section 
     affects the application of--
       ``(1) any Federal environmental law;
       ``(2) the Surface Mining Control and Reclamation Act of 
     1977 (30 U.S.C. 1201 et seq.); or
       ``(3) except as otherwise provided in this title, the 
     Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
     seq.).
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     are necessary for each of fiscal years 2006 through 2016 to 
     carry out this section and to make grants or provide other 
     appropriate assistance to Indian tribes to assist the Indian 
     tribes in developing and implementing tribal energy resource 
     agreements in accordance with this section.

     ``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

       ``(a) Definitions.--In this section:
       ``(1) The term ``Administrator'' means the Administrator of 
     the Bonneville Power Administration and the Administrator of 
     the Western Area Power Administration.
       ``(2) The term ``power marketing administration'' means--
       ``(A) the Bonneville Power Administration;
       ``(B) the Western Area Power Administration; and
       ``(C) any other power administration the power allocation 
     of which is used by or for the benefit of an Indian tribe 
     located in the service area of the administration.
       ``(b) Encouragement of Indian Tribal Energy Development.--
     Each Administrator shall encourage Indian tribal energy 
     development by taking such actions as the Administrators 
     determine to be appropriate, including administration of 
     programs of the power marketing administration, in accordance 
     with this section.
       ``(c) Action by Administrators.--In carrying out this 
     section, in accordance with laws in existence on the date of 
     enactment of the Energy Policy Act of 2005--
       ``(1) each Administrator shall consider the unique 
     relationship that exists between the United States and Indian 
     tribes;
       ``(2) power allocations from the Western Area Power 
     Administration to Indian tribes may be used to meet firming 
     and reserve needs of Indian-owned energy projects on Indian 
     land;
       ``(3) the Administrator of the Western Area Power 
     Administration may purchase non-federally generated power 
     from Indian tribes to meet the firming and reserve 
     requirements of the Western Area Power Administration; and
       ``(4) each Administrator shall not--
       ``(A) pay more than the prevailing market price for an 
     energy product; or
       ``(B) obtain less than prevailing market terms and 
     conditions.
       ``(d) Assistance for Transmission System Use.--
       ``(1) An Administrator may provide technical assistance to 
     Indian tribes seeking to use the high-voltage transmission 
     system for delivery of electric power.
       ``(2) The costs of technical assistance provided under 
     paragraph (1) shall be funded--
       ``(A) by the Secretary of Energy using nonreimbursable 
     funds appropriated for that purpose; or
       ``(B) by any appropriate Indian tribe.
       ``(e) Power Allocation Study.--Not later than 2 years after 
     the date of enactment of the Energy Policy Act of 2005, the 
     Secretary of Energy shall submit to Congress a report that--
       ``(1) describes the use by Indian tribes of Federal power 
     allocations of the power marketing administration (or power 
     sold by the Southwestern Power Administration) to or for the 
     benefit of Indian tribes in a service area of the power 
     marketing administration; and
       ``(2) identifies--
       ``(A) the quantity of power allocated to, or used for the 
     benefit of, Indian tribes by the Western Area Power 
     Administration;
       ``(B) the quantity of power sold to Indian tribes by any 
     other power marketing administration; and
       ``(C) barriers that impede tribal access to and use of 
     Federal power, including an assessment of opportunities to 
     remove those barriers and improve the ability of power 
     marketing administrations to deliver Federal power.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $750,000, non-reimbursable, to remain available until 
     expended.

     ``SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY.

       ``(a) Study.--The Secretary of Energy, in coordination with 
     the Secretary of the Army and the Secretary, shall conduct a 
     study of the cost and feasibility of developing a 
     demonstration project that uses wind energy generated by 
     Indian tribes and hydropower generated by the Army Corps of 
     Engineers on the Missouri River to supply firming power to 
     the Western Area Power Administration.
       ``(b) Scope of Study.--The study shall--
       ``(1) determine the feasibility of blending wind energy and 
     hydropower generated from the Missouri River dams operated by 
     the Army Corps of Engineers;
       ``(2) review historical and projected requirements for, and 
     patterns of availability and use of, firming power;
       ``(3) assess the wind energy resource potential on tribal 
     land and projected cost savings through a blend of wind and 
     hydropower over a 30-year period;
       ``(4) determine seasonal capacity needs and associated 
     transmission upgrades for integration of tribal wind 
     generation; and
       ``(5) include an independent tribal engineer as a study 
     team member.
       ``(c) Report.--Not later than 1 year after the date of 
     enactment of the Energy Policy Act of 2005, the Secretary and 
     the Secretary of the Army shall submit to Congress a report 
     that describes the results of the study, including--
       ``(1) an analysis of the potential energy cost or benefits 
     to the customers of the Western Area Power Administration 
     through the use of combined wind and hydropower;
       ``(2) an evaluation of whether a combined wind and 
     hydropower system can reduce reservoir fluctuation, enhance 
     efficient and reliable energy production, and provide 
     Missouri River management flexibility;
       ``(3) recommendations for a demonstration project to be 
     carried out by the Western Area Power Administration, in 
     partnership with an Indian tribal government or tribal energy 
     resource development organization, to demonstrate the 
     feasibility and potential of using wind energy produced on 
     Indian land to supply firming energy to the Western Area 
     Power Administration or any other Federal power marketing 
     agency; and
       ``(4) an identification of--
       ``(A) the economic and environmental costs of, or benefits 
     to be realized through, a Federal-tribal partnership; and
       ``(B) the manner in which a Federal-tribal partnership 
     could contribute to the energy security of the United States.
       ``(d) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000, to 
     remain available until expended.
       ``(2) Nonreimbursability.--Costs incurred by the Secretary 
     in carrying out this section shall be nonreimbursable.''.
       (b) Conforming Amendments.--The table of contents for the 
     Energy Policy Act of 1992 is amended by striking the items 
     relating to title XXVI and inserting the following:
``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.

[[Page 12442]]

``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving 
              energy development or transmission.
``Sec. 2605. Federal Power Marketing Administrations.
``Sec. 2606. Wind and hydropower feasibility study.''.

     SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT AND 
                   ELECTRIFICATION.

       (a) Transmission Line Project.--The Dine Power Authority, 
     an enterprise of the Navajo Nation, shall be eligible to 
     receive grants and other assistance under section 217 of the 
     Department of Energy Organization Act, as added by section 
     502, and section 2602 of the Energy Policy Act of 1992, as 
     amended by this Act, for activities associated with the 
     development of a transmission line from the Four Corners Area 
     to southern Nevada, including related power generation 
     opportunities.
       (b) Navajo Electrification.--Section 602 of Public Law 106-
     511 (114 Stat. 2376) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``5-year'' and 
     inserting ``10-year''; and
       (B) in the third sentence, by striking ``2006'' and 
     inserting ``2011''; and
       (2) in the first sentence of subsection (e) by striking 
     ``2006'' and inserting ``2011''.

     SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

       (a) In General.--The Secretary of Housing and Urban 
     Development shall promote energy conservation in housing that 
     is located on Indian land and assisted with Federal resources 
     through--
       (1) the use of energy-efficient technologies and 
     innovations (including the procurement of energy-efficient 
     refrigerators and other appliances);
       (2) the promotion of shared savings contracts; and
       (3) the use and implementation of such other similar 
     technologies and innovations as the Secretary of Housing and 
     Urban Development considers to be appropriate.
       (b) Amendment.--Section 202(2) of the Native American 
     Housing and Self-Determination Act of 1996 (25 U.S.C. 
     4132(2)) is amended by inserting ``improvement to achieve 
     greater energy efficiency,'' after ``planning,''.

     SEC. 506. CONSULTATION WITH INDIAN TRIBES.

       In carrying out this Act and the amendments made by this 
     Act, the Secretary of Energy and the Secretary shall, as 
     appropriate and to the maximum extent practicable, involve 
     and consult with Indian tribes in a manner that is consistent 
     with the Federal trust and the government-to-government 
     relationships between Indian tribes and the United States.

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

     SEC. 601. SHORT TITLE.

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

     SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.

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

     SEC. 603. MAXIMUM ASSESSMENT.

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

     SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.

       (a) Indemnification of Department of Energy Contractors.--
     Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d)) (as amended by section 602(b)) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) In an agreement of indemnification entered into under 
     paragraph (1), the Secretary--
       ``(A) may require the contractor to provide and maintain 
     financial protection of such a type and in such amounts as 
     the Secretary determines to be appropriate to cover public 
     liability arising out of or in connection with the 
     contractual activity; and
       ``(B) shall indemnify the persons indemnified against the 
     liability above the amount of the financial protection 
     required, in the amount of $10,000,000,000 (subject to 
     adjustment for inflation under subsection t.) in the 
     aggregate, for all persons indemnified in connection with the 
     contract and for each nuclear incident, including such legal 
     expenses incurred by the contractor as are approved by the 
     Secretary.''.
       (b) Contract Amendments.--Section 170 d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(d)) (as amended by section 
     602(b)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) All agreements of indemnification under which the 
     Department of Energy (or predecessor agencies) may be 
     required to indemnify any person under this section shall be 
     considered to be amended, on the date of enactment of the 
     Price-Anderson Amendments Act of 2005, to reflect the amount 
     of indemnity for public liability and any applicable 
     financial protection required of the contractor under this 
     subsection.''.
       (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
       (1) by striking ``the maximum amount of financial 
     protection required under subsection b. or''; and
       (2) by striking ``paragraph (3) of subsection d., whichever 
     amount is more'' and inserting ``paragraph (2) of subsection 
     d.''.

     SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.

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

     SEC. 606. REPORTS.

       Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(p)) is amended by striking ``August 1, 1998'' and 
     inserting ``December 31, 2021''.

     SEC. 607. INFLATION ADJUSTMENT.

       Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(t)) (as amended by section 603(2)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) The Secretary shall adjust the amount of 
     indemnification provided under an agreement of 
     indemnification under subsection d. not less than once during 
     each 5-year period following July 1, 2003, in accordance with 
     the aggregate percentage change in the Consumer Price Index 
     since--
       ``(A) that date, in the case of the first adjustment under 
     this paragraph; or
       ``(B) the previous adjustment under this paragraph.''.

     SEC. 608. TREATMENT OF MODULAR REACTORS.

       Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(b)) (as amended by section 603) is amended by adding at 
     the end the following:
       ``(5)(A) For purposes of this section only, the Commission 
     shall consider a combination of facilities described in 
     subparagraph (B) to be a single facility having a rated 
     capacity of 100,000 electrical kilowatts or more.
       ``(B) A combination of facilities referred to in 
     subparagraph (A) is 2 or more facilities located at a single 
     site, each of which has a rated capacity of not less than 
     100,000 electrical kilowatts and not more than 300,000 
     electrical kilowatts, with a combined rated capacity of not 
     more than 1,300,000 electrical kilowatts.''.

     SEC. 609. APPLICABILITY.

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

     SEC. 610. CIVIL PENALTIES.

       (a) Repeal of Automatic Remission.--Section 234A b.(2) of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is 
     amended by striking the last sentence.
       (b) Limitation for Not-for-Profit Institutions.--Section 
     234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a) is 
     amended by striking subsection d. and inserting the 
     following:
       ``d.(1) Notwithstanding subsection a., in the case of any 
     not-for-profit contractor, subcontractor, or supplier, the 
     total amount of civil penalties paid under subsection a. may 
     not exceed the total amount of fees paid within any 1-year 
     period (as determined by the Secretary) under the contract 
     under which the violation occurs.
       ``(2) In this section, the term `not-for-profit' means that 
     no part of the net earnings of the contractor, subcontractor, 
     or supplier inures to the benefit of any natural person or 
     for-profit artificial person.''.
       (c) Effective Date.--The amendments made by this section 
     shall not apply to any violation of the Atomic Energy Act of 
     1954 (42 U.S.C. 2011 et seq.) occurring under a contract 
     entered into before the date of enactment of this Act.

[[Page 12443]]



                  Subtitle B--General Nuclear Matters

     SEC. 621. MEDICAL ISOTOPE PRODUCTION.

       Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2160d) is amended--
       (1) by redesignating subsections a. and b. as subsection b. 
     and a., respectively, and moving the subsections so as to 
     appear in alphabetical order;
       (2) in subsection a. (as redesignated by paragraph (1)), by 
     striking ``a. As used in this section--'' and inserting the 
     following:
       ``a. Definitions.--In this section--'';
       (3) in subsection b. (as redesignated by paragraph (1), by 
     striking ``b. The Commission'' and inserting the following:
       ``b. Restrictions on Exports.--Except as provided in 
     subsection c., the Commission''; and
       (4) by adding at the end the following:
       ``c. Medical Isotope Production.--
       ``(1) Definitions.--In this subsection:
       ``(A) Medical isotope.--The term `medical isotope' includes 
     Molybdenum 99, Iodine 131, Xenon 133, and other radioactive 
     materials used to produce a radiopharmaceutical for 
     diagnostic, therapeutic procedures or for research and 
     development.
       ``(B) Radiopharmaceutical.--The term `radiopharmaceutical' 
     means a radioactive isotope that--
       ``(i) contains byproduct material combined with chemical or 
     biological material; and
       ``(ii) is designed to accumulate temporarily in a part of 
     the body for--

       ``(I) therapeutic purposes; or
       ``(II) enabling the production of a useful image for use in 
     a diagnosis of a medical condition.

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

     SEC. 622. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE 
                   WASTE.

       (a) Responsibility for Activities To Provide Storage 
     Facility.--The Secretary shall provide to Congress official 
     notification of the final designation of an entity within the 
     Department to have the responsibility of completing 
     activities needed to provide a facility for safely disposing 
     of all greater-than-Class C low-level radioactive waste.
       (b) Reports and Plans.--
       (1) Report on permanent disposal facility.--
       (A) Plan regarding cost and schedule for completion of eis 
     and rod.--Not later than 1 year after the date of enactment 
     of this Act, the Secretary, in consultation with Congress, 
     shall submit to Congress a report containing an estimate of 
     the cost and a proposed schedule to complete an environmental 
     impact statement and record of decision for a permanent 
     disposal facility for greater-than-Class C radioactive waste.
       (B) Analysis of alternatives.--Before the Secretary makes a 
     final decision on the disposal alternative or alternatives to 
     be implemented, the Secretary shall--
       (i) submit to Congress a report that describes all 
     alternatives under consideration, including all information 
     required in the comprehensive report making recommendations 
     for ensuring the safe disposal of all greater-than-Class C 
     low-level radioactive waste that was submitted by the 
     Secretary to Congress in February 1987; and
       (ii) await action by Congress.
       (2) Short-term plan for recovery and storage.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a plan to ensure the continued recovery and storage of 
     greater-than-Class C low-level radioactive sealed sources 
     that pose a security threat until a permanent disposal 
     facility is available.
       (B) Contents.--The plan shall address estimated cost, 
     resource, and facility needs.

     SEC. 623. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT 
                   SPONSOR TERRORISM.

       (a) In General.--Section 129 of the Atomic Energy Act of 
     1954 (42 U.S.C. 2158) is amended--
       (1) by inserting ``a.'' before ``No nuclear materials and 
     equipment''; and
       (2) by adding at the end the following:
       ``b.(1)(A) Notwithstanding any other provision of law, 
     including section 121, and except as provided in paragraphs 
     (2) and (3), no nuclear materials and equipment or sensitive 
     nuclear technology, including items and assistance authorized 
     by section 57 b. and regulated under part 810 of title 10, 
     Code of Federal Regulations (or a successor regulation), and 
     nuclear-related items on the Commerce Control List maintained 
     under part 774 of title 15 of the Code of Federal Regulations 
     (or a successor regulation), shall be exported or reexported, 
     or transferred or retransferred, whether directly or 
     indirectly, and no

[[Page 12444]]

     Federal agency shall issue any license, approval, or 
     authorization for the export or reexport, or transfer, or 
     retransfer, whether directly or indirectly, of the items or 
     assistance described in this paragraph to any country the 
     government of which has been identified by the Secretary of 
     State as engaged in state sponsorship of terrorist 
     activities.
       ``(B) Countries described in subparagraph (A) specifically 
     include any country the government of which has been 
     determined by the Secretary of State to have repeatedly 
     provided support for acts of international terrorism under--
       ``(i) section 620A(a) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2371(a));
       ``(ii) section 6(j)(1) of the Export Administration Act of 
     1979 (50 U.S.C. App. 2405(j)(1)); or
       ``(iii) section 40(d) of the Arms Export Control Act (22 
     U.S.C. 2780(d)).
       ``(2) This subsection does not apply to exports, reexports, 
     transfers, or retransfers of radiation monitoring 
     technologies, surveillance equipment, seals, cameras, tamper-
     indication devices, nuclear detectors, monitoring systems, or 
     equipment necessary to safely store, transport, or remove 
     hazardous materials, whether such items, services, or 
     information are regulated by the Department of Energy, the 
     Department of Commerce, or the Commission, except to the 
     extent that the technologies, equipment, seals, cameras, 
     devices, detectors, or systems are available for use in the 
     design or construction of nuclear reactors or nuclear 
     weapons.
       ``(3) The President may waive the application of paragraph 
     (1) to a country if the President determines and certifies to 
     Congress that--
       ``(A) the waiver will not result in any increased risk that 
     the country receiving the waiver will acquire nuclear 
     weapons, nuclear reactors, or any materials or components of 
     nuclear weapons; and
       ``(B)(i) the government of the country has not within the 
     preceding 12-month period willfully aided or abetted the 
     international proliferation of nuclear explosive devices to 
     individuals or groups or willfully aided and abetted an 
     individual or groups in acquiring unsafeguarded nuclear 
     materials;
       ``(ii) in the judgment of the President, the government of 
     the country has provided adequate, verifiable assurances that 
     the country will cease its support for acts of international 
     terrorism;
       ``(iii) the waiver of paragraph (1) is in the vital 
     national security interest of the United States; or
       ``(iv) the waiver of paragraph (1) is essential to prevent 
     or respond to a serious radiological hazard in the country 
     receiving the waiver that may or does threaten public health 
     and safety.''.
       (b) Applicability to Exports Approved for Transfer but not 
     Transferred.--Subsection b. of section 129 of Atomic Energy 
     Act of 1954 (as added by subsection (a)), shall apply with 
     respect to exports that have been approved for transfer as of 
     the date of enactment of this Act but have not yet been 
     transferred as of that date.

     SEC. 624. DECOMMISSIONING PILOT PROGRAM.

       (a) Pilot Program.--The Secretary shall establish a 
     decommissioning pilot program under which the Secretary shall 
     decommission and decontaminate the sodium-cooled fast breeder 
     experimental test-site reactor located in northwest Arkansas, 
     in accordance with the decommissioning activities contained 
     in the report of the Department relating to the reactor, 
     dated August 31, 1998.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $16,000,000.

           Subtitle C--Next Generation Nuclear Plant Project

     SEC. 631. PROJECT ESTABLISHMENT.

       (a) Establishment.--The Secretary shall establish a project 
     to be known as the ``Next Generation Nuclear Plant Project'' 
     (referred to in this subtitle as the ``Project'').
       (b) Content.--The Project shall consist of the research, 
     development, design, construction, and operation of a 
     prototype plant, including a nuclear reactor that--
       (1) is based on research and development activities 
     supported by the Generation IV Nuclear Energy Systems 
     Initiative under section 942(d); and
       (2) shall be used--
       (A) to generate electricity;
       (B) to produce hydrogen; or
       (C) both to generate electricity and to produce hydrogen.

     SEC. 632. PROJECT MANAGEMENT.

       (a) Departmental Management.--
       (1) In general.--The Project shall be managed in the 
     Department by the Office of Nuclear Energy, Science, and 
     Technology.
       (2) Generation iv nuclear energy systems program.--The 
     Secretary may combine the Project with the Generation IV 
     Nuclear Energy Systems Initiative.
       (3) Existing doe project management expertise.--The 
     Secretary may utilize capabilities for review of construction 
     projects for advanced scientific facilities within the Office 
     of Science to track the progress of the Project.
       (b) Laboratory Management.--
       (1) Lead laboratory.--The Idaho National Laboratory shall 
     be the lead National Laboratory for the Project and shall 
     collaborate with other National Laboratories, institutions of 
     higher education, other research institutes, industrial 
     researchers, and international researchers to carry out the 
     Project.
       (2) Industrial partnerships.--
       (A) In general.--The Idaho National Laboratory shall 
     organize a consortium of appropriate industrial partners that 
     will carry out cost-shared research, development, design, and 
     construction activities, and operate research facilities, on 
     behalf of the Project.
       (B) Cost-sharing.--Activities of industrial partners funded 
     by the Project shall be cost-shared in accordance with 
     section 1002.
       (C) Preference.--Preference in determining the final 
     structure of the consortium or any partnerships under this 
     subtitle shall be given to a structure (including designating 
     as a lead industrial partner an entity incorporated in the 
     United States) that retains United States technological 
     leadership in the Project while maximizing cost sharing 
     opportunities and minimizing Federal funding 
     responsibilities.
       (3) Prototype plant siting.--The prototype nuclear reactor 
     and associated plant shall be sited at the Idaho National 
     Laboratory in Idaho.
       (4) Reactor test capabilities.--The Project shall use, if 
     appropriate, reactor test capabilities at the Idaho National 
     Laboratory.
       (5) Other laboratory capabilities.--The Project may use, if 
     appropriate, facilities at other National Laboratories.

     SEC. 633. PROJECT ORGANIZATION.

       (a) Major Project Elements.--The Project shall consist of 
     the following major program elements:
       (1) High-temperature hydrogen production technology 
     development and validation.
       (2) Energy conversion technology development and 
     validation.
       (3) Nuclear fuel development, characterization, and 
     qualification.
       (4) Materials selection, development, testing, and 
     qualification.
       (5) Reactor and balance-of-plant design, engineering, 
     safety analysis, and qualification.
       (b) Project Phases.--The Project shall be conducted in the 
     following phases:
       (1) First project phase.--A first project phase shall be 
     conducted to--
       (A) select and validate the appropriate technology under 
     subsection (a)(1);
       (B) carry out enabling research, development, and 
     demonstration activities on technologies and components under 
     paragraphs (2) through (4) of subsection (a);
       (C) determine whether it is appropriate to combine 
     electricity generation and hydrogen production in a single 
     prototype nuclear reactor and plant; and
       (D) carry out initial design activities for a prototype 
     nuclear reactor and plant, including development of design 
     methods and safety analytical methods and studies under 
     subsection (a)(5)
       (2) Second project phase.--A second project phase shall be 
     conducted to--
       (A) continue appropriate activities under paragraphs (1) 
     though (5) of subsection (a);
       (B) develop, through a competitive process, a final design 
     for the prototype nuclear reactor and plant;
       (C) apply for licenses to construct and operate the 
     prototype nuclear reactor from the Nuclear Regulatory 
     Commission; and
       (D) construct and start up operations of the prototype 
     nuclear reactor and its associated hydrogen or electricity 
     production facilities.
       (c) Project Requirements.--
       (1) In general.--The Secretary shall ensure that the 
     Project is structured so as to maximize the technical 
     interchange and transfer of technologies and ideas into the 
     Project from other sources of relevant expertise, including--
       (A) the nuclear power industry, including nuclear 
     powerplant construction firms, particularly with respect to 
     issues associated with plant design, construction, and 
     operational and safety issues;
       (B) the chemical processing industry, particularly with 
     respect to issues relating to--
       (i) the use of process energy for production of hydrogen; 
     and
       (ii) the integration of technologies developed by the 
     Project into chemical processing environments; and
       (C) international efforts in areas related to the Project, 
     particularly with respect to hydrogen production 
     technologies.
       (2) International collaboration.--
       (A) In general.--The Secretary shall seek international 
     cooperation, participation, and financial contributions for 
     the Project.
       (B) Assistance from international partners.--The Secretary, 
     through the Idaho National Laboratory, may contract for 
     assistance from specialists or facilities from member 
     countries of the Generation IV International Forum, the 
     Russian Federation, or other international partners if the 
     specialists or facilities provide access to cost-effective 
     and relevant skills or test capabilities.
       (C) Partner nations.--The Project may involve demonstration 
     of selected project objectives in a partner country.

[[Page 12445]]

       (D) Generation iv international forum.--The Secretary shall 
     ensure that international activities of the Project are 
     coordinated with the Generation IV International Forum.
       (3) Review by nuclear energy research advisory committee.--
       (A) In general.--The Nuclear Energy Research Advisory 
     Committee of the Department (referred to in this paragraph as 
     the ``NERAC'') shall--
       (i) review all program plans for the Project and all 
     progress under the Project on an ongoing basis; and
       (ii) ensure that important scientific, technical, safety, 
     and program management issues receive attention in the 
     Project and by the Secretary.
       (B) Additional expertise.--The NERAC shall supplement the 
     expertise of NERAC or appoint subpanels to incorporate into 
     the review by NERAC the relevant sources of expertise 
     described under paragraph (1).
       (C) Initial review.--Not later than 180 days after the date 
     of enactment of this Act, the NERAC shall--
       (i) review existing program plans for the Project in light 
     of the recommendations of the document entitled ``Design 
     Features and Technology Uncertainties for the Next Generation 
     Nuclear Plant,'' dated June 30, 2004; and
       (ii) address any recommendations of the document not 
     incorporated in program plans for the Project.
       (D) First project phase review.--On a determination by the 
     Secretary that the appropriate activities under the first 
     project phase under subsection (b)(1) are nearly complete, 
     the Secretary shall request the NERAC to conduct a 
     comprehensive review of the Project and to report to the 
     Secretary the recommendation of NERAC concerning whether the 
     Project is ready to proceed to the second project phase under 
     subsection (b)(2).
       (E) Transmittal of reports to congress.--Not later than 60 
     days after receiving any report from the NERAC related to the 
     Project, the Secretary shall submit to the appropriate 
     committees of the Senate and the House of Representatives a 
     copy of the report, along with any additional views of the 
     Secretary that the Secretary may consider appropriate.

     SEC. 634. NUCLEAR REGULATORY COMMISSION.

       (a) In General.--In accordance with section 202 of the 
     Energy Reorganization Act of 1974 (42 U.S.C. 5842), the 
     Nuclear Regulatory Commission shall have licensing and 
     regulatory authority for any reactor authorized under this 
     subtitle.
       (b) Licensing Strategy.--Not later than 3 years after the 
     date of enactment of this Act, the Secretary and the Chairman 
     of the Nuclear Regulatory Commission shall jointly submit to 
     the appropriate committees of the Senate and the House of 
     Representatives a licensing strategy for the prototype 
     nuclear reactor, including--
       (1) a description of ways in which current licensing 
     requirements relating to light-water reactors need to be 
     adapted for the types of prototype nuclear reactor being 
     considered by the Project;
       (2) a description of analytical tools that the Nuclear 
     Regulatory Commission will have to develop to independently 
     verify designs and performance characteristics of components, 
     equipment, systems, or structures associated with the 
     prototype nuclear reactor;
       (3) other research or development activities that may be 
     required on the part of the Nuclear Regulatory Commission in 
     order to review a license application for the prototype 
     nuclear reactor; and
       (4) an estimate of the budgetary requirements associated 
     with the licensing strategy.
       (c) Ongoing Interaction.--The Secretary shall seek the 
     active participation of the Nuclear Regulatory Commission 
     throughout the duration of the Project to--
       (1) avoid design decisions that will compromise adequate 
     safety margins in the design of the reactor or impair the 
     accessibility of nuclear safety-related components of the 
     prototype reactor for inspection and maintenance;
       (2) develop tools to facilitate inspection and maintenance 
     needed for safety purposes; and
       (3) develop risk-based criteria for any future commercial 
     development of a similar reactor architectures.

     SEC. 635. PROJECT TIMELINES AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       (a) Target Date to Complete the First Project Phase.--Not 
     later than September 30, 2011--
       (1) the Secretary shall select the technology to be used by 
     the Project for high-temperature hydrogen production and the 
     initial design parameters for the prototype nuclear plant; or
       (2) submit to Congress a report establishing an alternative 
     date for making the selection.
       (b) Design Competition for Second Project Phase.--
       (1) In general.--The Secretary, acting through the Idaho 
     National Laboratory, shall fund not more than 4 teams for not 
     more than 2 years to develop detailed proposals for 
     competitive evaluation and selection of a single proposal for 
     a final design of the prototype nuclear reactor.
       (2) Systems integration.--The Secretary may structure 
     Project activities in the second project phase to use the 
     lead industrial partner of the competitively selected design 
     under paragraph (1) in a systems integration role for final 
     design and construction of the Project.
       (c) Target Date to Complete Project Construction.--Not 
     later than September 30, 2021--
       (1) the Secretary shall complete construction and begin 
     operations of the prototype nuclear reactor and associated 
     energy or hydrogen facilities; or
       (2) submit to Congress a report establishing an alternative 
     date for completion.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary for research and 
     construction activities under this subtitle (including for 
     transfer to the Nuclear Regulatory Commission for activities 
     under section 634 as appropriate)--
       (1) $1,250,000,000 for the period of fiscal years 2006 
     through 2015; and
       (2) such sums as are necessary for each of fiscal years 
     2016 through 2021.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

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

       Section 400AA(a)(3) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6374(a)(3)) is amended by striking 
     subparagraph (E) and inserting the following:
       ``(E)(i) Dual fueled vehicles acquired pursuant to this 
     section shall be operated on alternative fuels unless the 
     Secretary determines that an agency qualifies for a waiver of 
     the requirements of this section for vehicles operated by the 
     agency in a particular geographic area in which--
       ``(I) the alternative fuel otherwise required to be used in 
     the vehicle is not reasonably available to retail purchasers 
     of the fuel, as certified to the Secretary by the head of the 
     agency; or
       ``(II) the cost of the alternative fuel otherwise required 
     to be used in the vehicle is unreasonably more expensive 
     compared to gasoline, as certified to the Secretary by the 
     head of the agency.
       ``(ii) The Secretary shall monitor compliance with this 
     subparagraph by all fleets receiving a waiver.
       ``(iii) The Secretary shall report annually to Congress on 
     the extent to which the requirements of this subparagraph are 
     being achieved, including information on annual reductions 
     achieved from the use of petroleum-based fuels and the 
     problems, if any, encountered in acquiring alternative 
     fuels.''.

     SEC. 702. ALTERNATIVE FUEL USE BY LIGHT DUTY VEHICLES.

       Title V of the Energy Policy Act of 1992 (42 U.S.C. 13251 
     et seq.) is amended by adding at the end the following:

     ``SEC. 516. TERMINATION OF AUTHORITY.

       ``The authority provided by sections 501, 507, and 508 
     terminates the earlier of--
       ``(1) September 30, 2015; or
       ``(2) the date, the Secretary has established, by rule, a 
     replacement program that achieves the goals of those 
     sections.''.

     SEC. 703. INCREMENTAL COST ALLOCATION.

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

     SEC. 704. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

       (a) Alternative Compliance.--Title V of the Energy Policy 
     Act of 1992 (42 U.S.C. 13251 et seq.) is amended--
       (1) by redesignating section 514 (42 U.S.C. 13264) as 
     section 515; and
       (2) by inserting after section 513 (42 U.S.C. 13263) the 
     following:

     ``SEC. 514. ALTERNATIVE COMPLIANCE.

       ``(a) Application for Waiver.--Any covered person subject 
     to section 501 and any State subject to section 507(o) may 
     petition the Secretary for a waiver of the applicable 
     requirements of section 501 or 507(o).
       ``(b) Grant of Waiver.--The Secretary shall grant a waiver 
     of the requirements of section 501 or 507(o) on a showing 
     that the fleet owned, operated, leased, or otherwise 
     controlled by the State or covered person--
       ``(1) will achieve a reduction in the annual consumption of 
     petroleum fuels by the fleet equal to--
       ``(A) the reduction in consumption of petroleum that would 
     result from 100 percent cumulative compliance with the fuel 
     use requirements of section 501; or
       ``(B) in the case of an entity covered under section 
     507(o), a reduction equal to the annual consumption by the 
     State entity of alternative fuels if all of the cumulative 
     alternative fuel vehicles of the State entity given credit 
     under section 508 were to use alternative fuel 100 percent of 
     the time; and
       ``(2) is in compliance with all applicable vehicle emission 
     standards established by the Administrator of the 
     Environmental Protection Agency under the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Revocation of Waiver.--The Secretary shall revoke any 
     waiver granted under this section if the State or covered 
     person fails to comply with subsection (b).''.
       (b) Credits.--Section 508(a) of the Energy Policy Act of 
     1992 (42 U.S.C. 13258(a)) is amended--

[[Page 12446]]

       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) The Secretary''; and
       (2) by adding at the end the following:
       ``(2) Not later than January 31, 2007, the Secretary 
     shall--
       ``(A) allocate credit in an amount to be determined by the 
     Secretary for--
       ``(i) acquisition of--

       ``(I) a light-duty hybrid electric vehicle;
       ``(II) a plug-in hybrid electric vehicle;
       ``(III) a fuel cell electric vehicle;
       ``(IV) a medium- or heavy-duty hybrid electric vehicle;
       ``(V) a neighborhood electric vehicle; or
       ``(VI) a medium- or heavy-duty dedicated vehicle; and

       ``(ii) investment in qualified alternative fuel 
     infrastructure or nonroad equipment, as determined by the 
     Secretary; and
       ``(B) allocate more than 1, but not to exceed 5, credits 
     for investment in an emerging technology relating to any 
     vehicle described in subparagraph (A) to encourage--
       ``(i) a reduction in petroleum demand;
       ``(ii) technological advancement; and
       ``(iii) environmental safety.''.
       (c) Table of Contents Amendment.--The table of contents of 
     the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is 
     amended by striking the item relating to section 514 and 
     inserting the following:

``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.
``Sec. 516. Termination of authority.''.

     SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE 
                   FUELED VEHICLE PURCHASING REQUIREMENTS.

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

                   Subtitle B--Automobile Efficiency

     SEC. 711. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION 
                   AND ENFORCEMENT OF FUEL ECONOMY STANDARDS.

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

                       Subtitle C--Miscellaneous

     SEC. 721. RAILROAD EFFICIENCY.

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

     SEC. 722. CONSERVE BY BICYCLING PROGRAM.

       (a) Definitions.--In this section:
       (1) Program.--The term ``program'' means the Conserve by 
     Bicycling Program established by subsection (b).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Establishment.--There is established within the 
     Department of Transportation a program to be known as the 
     ``Conserve by Bicycling Program''.
       (c) Projects.--
       (1) In general.--In carrying out the program, the Secretary 
     shall establish not more than 10 pilot projects that are--
       (A) dispersed geographically throughout the United States; 
     and
       (B) designed to conserve energy resources by encouraging 
     the use of bicycles in place of motor vehicles.
       (2) Requirements.--A pilot project described in paragraph 
     (1) shall--
       (A) use education and marketing to convert motor vehicle 
     trips to bicycle trips;
       (B) document project results and energy savings (in 
     estimated units of energy conserved);
       (C) facilitate partnerships among interested parties in at 
     least 2 of the fields of--
       (i) transportation;
       (ii) law enforcement;
       (iii) education;
       (iv) public health;
       (v) environment; and
       (vi) energy;
       (D) maximize bicycle facility investments;
       (E) demonstrate methods that may be used in other regions 
     of the United States; and
       (F) facilitate the continuation of ongoing programs that 
     are sustained by local resources.
       (3) Cost sharing.--At least 20 percent of the cost of each 
     pilot project described in paragraph (1) shall be provided 
     from non-Federal sources.
       (d) Energy and Bicycling Research Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall enter into a 
     contract with the National Academy of Sciences for, and the 
     National Academy of Sciences shall conduct and submit to 
     Congress a report on, a study on the feasibility of 
     converting motor vehicle trips to bicycle trips.
       (2) Components.--The study shall--
       (A) document the results or progress of the pilot projects 
     under subsection (c);
       (B) determine the type and duration of motor vehicle trips 
     that people in the United States may feasibly make by 
     bicycle, taking into consideration factors such as--
       (i) weather;
       (ii) land use and traffic patterns;
       (iii) the carrying capacity of bicycles; and
       (iv) bicycle infrastructure;
       (C) determine any energy savings that would result from the 
     conversion of motor vehicle trips to bicycle trips;
       (D) include a cost-benefit analysis of bicycle 
     infrastructure investments; and
       (E) include a description of any factors that would 
     encourage more motor vehicle trips to be replaced with 
     bicycle trips.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $6,200,000, to remain available until expended, of which--
       (1) $5,150,000 shall be used to carry out pilot projects 
     described in subsection (c);
       (2) $300,000 shall be used by the Secretary to coordinate, 
     publicize, and disseminate the results of the program; and
       (3) $750,000 shall be used to carry out subsection (d).

     SEC. 723. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Advanced truck stop electrification system.--The term 
     ``advanced truck stop electrification system'' means a 
     stationary system that delivers heat, air conditioning, 
     electricity, and communications, and is capable of providing 
     verifiable and auditable evidence of use of those services, 
     to a heavy-duty vehicle and any occupants of the heavy-duty 
     vehicle without relying on components mounted onboard the 
     heavy-duty vehicle for delivery of those services.
       (3) Auxiliary power unit.--The term ``auxiliary power 
     unit'' means an integrated system that--
       (A) provides heat, air conditioning, engine warming, and 
     electricity to the factory-installed components on a heavy-
     duty vehicle as if the main drive engine of the heavy-duty 
     vehicle were running; and
       (B) is certified by the Administrator under part 89 of 
     title 40, Code of Federal Regulations (or any successor 
     regulation), as meeting applicable emission standards.
       (4) Heavy-duty vehicle.--The term ``heavy-duty vehicle'' 
     means a vehicle that--
       (A) has a gross vehicle weight rating greater than 12,500 
     pounds; and
       (B) is powered by a diesel engine.
       (5) Idle reduction technology.--The term ``idle reduction 
     technology'' means an advanced truck stop electrification 
     system, auxiliary power unit, or other device or system of 
     devices that--
       (A) is used to reduce long-duration idling of a heavy-duty 
     vehicle; and
       (B) allows for the main drive engine or auxiliary 
     refrigeration engine of a heavy-duty vehicle to be shut down.
       (6) Long-duration idling.--
       (A) In general.--The term ``long-duration idling'' means 
     the operation of a main drive engine or auxiliary 
     refrigeration engine of a heavy-duty vehicle, for a period 
     greater than 15 consecutive minutes, at a time at which the 
     main drive engine is not engaged in gear.
       (B) Exclusions.--The term ``long-duration idling'' does not 
     include the operation of a main drive engine or auxiliary 
     refrigeration engine of a heavy-duty vehicle during a routine 
     stoppage associated with traffic movement or congestion.
       (b) Idle Reduction Technology Benefits, Programs, and 
     Studies.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall--
       (A)(i) commence a review of the mobile source air emission 
     models of the Environmental Protection Agency used under the 
     Clean Air Act (42 U.S.C. 7401 et seq.) to determine whether 
     the models accurately reflect the emissions resulting from 
     long-duration idling of heavy-duty vehicles and other 
     vehicles and engines; and
       (ii) update those models as the Administrator determines to 
     be appropriate; and
       (B)(i) commence a review of the emission reductions 
     achieved by the use of idle reduction technology; and
       (ii) complete such revisions of the regulations and 
     guidance of the Environmental Protection Agency as the 
     Administrator determines to be appropriate.
       (2) Deadline for completion.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator shall--
       (A) complete the reviews under subparagraphs (A)(i) and 
     (B)(i) of paragraph (1); and
       (B) prepare and make publicly available 1 or more reports 
     on the results of the reviews.
       (3) Discretionary inclusions.--The reviews under 
     subparagraphs (A)(i) and (B)(i) of paragraph (1) and the 
     reports under paragraph (2)(B) may address the potential fuel

[[Page 12447]]

     savings resulting from use of idle reduction technology.
       (4) Idle reduction deployment program.--
       (A) Establishment.--
       (i) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Transportation, shall establish a 
     program to support deployment of idle reduction technology.
       (ii) Priority.--The Administrator shall give priority to 
     the deployment of idle reduction technology based on 
     beneficial effects on air quality and ability to lessen the 
     emission of criteria air pollutants.
       (B) Funding.--
       (i) Authorization of appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out 
     subparagraph (A)--

       (I) $19,500,000 for fiscal year 2006;
       (II) $30,000,000 for fiscal year 2007; and
       (III) $45,000,000 for fiscal year 2008.

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

     SEC. 724. BIODIESEL ENGINE TESTING PROJECT.

       (a) Definition of Biodiesel.--In this section, the term 
     ``biodiesel'' means a diesel fuel substitute produced from 
     nonpetroleum renewable resources that meets--
       (1) the registration requirements for fuels and fuel 
     additives established under section 211 of the Clean Air Act 
     (42 U.S.C. 7545); and
       (2) the American Society for Testing and Materials Standard 
     D6751-02a ``Standard Specification for Biodiesel Fuel (B100) 
     Blend Stock for Distillate Fuels''.
       (b) Program.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall initiate a 
     project, in partnership with diesel engine, diesel fuel 
     injection system, and diesel vehicle manufacturers and diesel 
     and biodiesel fuel providers, to provide biodiesel testing in 
     advanced diesel engine and fuel system technology.
       (c) Scope.--The project shall provide for testing to 
     determine the impact of biodiesel on current and future 
     emission control technologies, with emphasis on--
       (1) the impact of biodiesel on emissions warranty, in-use 
     liability, and anti-tampering provisions;
       (2) the impact of long-term use of biodiesel on engine 
     operations;
       (3) the options for optimizing those technologies for both 
     emissions and performance when switching between biodiesel 
     and diesel fuel; and
       (4) the impact of using biodiesel in those fueling systems 
     and engines when used as a blend with diesel fuel containing 
     a maximum of 15-parts-per-million sulfur content, as mandated 
     by the Administrator of the Environmental Protection Agency 
     during 2006.
       (d) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the project, including--
       (1) a comprehensive analysis of impacts from biodiesel on 
     engine operation for both existing and expected future diesel 
     technologies; and
       (2) recommendations for ensuring optimal emissions 
     reductions and engine performance with biodiesel.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2008.

               Subtitle D--Federal and State Procurement

     SEC. 731. DEFINITIONS.

       In this subtitle:
       (1) Department.--The term ``Department'' means the 
     Department of Energy.
       (2) Fuel cell.--The term ``fuel cell'' means a device that 
     directly converts the chemical energy of a fuel and an 
     oxidant into electricity by electrochemical processes 
     occurring at separate electrodes in the device.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (4) Stationary; portable.--The terms ``stationary'' and 
     ``portable'', when used in reference to a fuel cell, 
     include--
       (A) continuous electric power; and
       (B) backup electric power.
       (5) Task force.--The term ``Task Force'' means the Hydrogen 
     and Fuel Cell Technical Task Force established under section 
     102(a) of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 (as amended by 
     section 801).
       (6) Technical advisory committee.--The term ``Technical 
     Advisory Committee'' means the independent Technical Advisory 
     Committee selected under section 102(d) of the Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990 (as added by section 801).

     SEC. 732. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES 
                   AND HYDROGEN ENERGY SYSTEMS.

       (a) Purposes.--The purposes of this section are--
       (1) to stimulate acceptance by the market of fuel cell 
     vehicles and hydrogen energy systems;
       (2) to support development of technologies relating to fuel 
     cell vehicles, public refueling stations, and hydrogen energy 
     systems; and
       (3) to require the Federal government, which is the largest 
     single user of energy in the United States, to adopt those 
     technologies as soon as practicable after the technologies 
     are developed, in conjunction with private industry partners.
       (b) Federal Leases and Purchases.--
       (1) Requirement.--
       (A) In general.--Not later than January 1, 2010, the head 
     of any Federal agency that uses a light-duty or heavy-duty 
     vehicle fleet shall lease or purchase fuel cell vehicles and 
     hydrogen energy systems to meet any applicable energy savings 
     goal described in subsection (c).
       (B) Learning demonstration vehicles.--The Secretary may 
     lease or purchase appropriate vehicles developed under 
     section 201 of the Spark M. Matsunaga Hydrogen Research, 
     Development, and Demonstration Act of 1990 (as added by 
     section 801) to meet the requirement in subparagraph (A).
       (2) Costs of leases and purchases.--
       (A) In general.--The Secretary, in cooperation with the 
     Task Force and the Technical Advisory Committee, shall pay to 
     Federal agencies (or share the cost under interagency 
     agreements) the difference in cost between--
       (i) the cost to the agencies of leasing or purchasing fuel 
     cell vehicles and hydrogen energy systems under paragraph 
     (1); and
       (ii) the cost to the agencies of a feasible alternative to 
     leasing or purchasing fuel cell vehicles and hydrogen energy 
     systems, as determined by the Secretary.
       (B) Competitive costs and management structures.--In 
     carrying out subparagraph (A), the Secretary, in consultation 
     with the agency, may use the General Services Administration 
     or any commercial vendor to ensure--
       (i) a cost-effective purchase of a fuel cell vehicle or 
     hydrogen energy system; or
       (ii) a cost-effective management structure of the lease of 
     a fuel cell vehicle or hydrogen energy system.
       (3) Exception.--
       (A) In general.--If the Secretary determines that the head 
     of an agency described in paragraph (1) cannot find an 
     appropriately efficient and reliable fuel cell vehicle or 
     hydrogen energy system in accordance with paragraph (1), that 
     agency shall be excepted from compliance with paragraph (1).
       (B) Consideration.--In making a determination under 
     subparagraph (A), the Secretary shall consider--
       (i) the needs of the agency; and
       (ii) an evaluation performed by--

       (I) the Task Force; or
       (II) the Technical Advisory Committee.

       (c) Energy Savings Goals.--
       (1) In general.--
       (A) Regulations.--Not later than December 31, 2006, the 
     Secretary shall--
       (i) in cooperation with the Task Force, promulgate 
     regulations for the period of 2008 through 2010 that extend 
     and augment energy savings goals for each Federal agency, in 
     accordance with any Executive order issued after March 2000; 
     and

[[Page 12448]]

       (ii) promulgate regulations to expand the minimum Federal 
     fleet requirement and credit allowances for fuel cell vehicle 
     systems under section 303 of the Energy Policy Act of 1992 
     (42 U.S.C. 13212).
       (B) Review, evaluation, and new regulations.--Not later 
     than December 31, 2010, the Secretary shall--
       (i) review the regulations promulgated under subparagraph 
     (A);
       (ii) evaluate any progress made toward achieving energy 
     savings by Federal agencies; and
       (iii) promulgate new regulations for the period of 2011 
     through 2015 to achieve additional energy savings by Federal 
     agencies relating to technical and cost-performance 
     standards.
       (2) Offsetting energy savings goals.--An agency that leases 
     or purchases a fuel cell vehicle or hydrogen energy system in 
     accordance with subsection (b)(1) may use that lease or 
     purchase to count toward an energy savings goal of the 
     agency.
       (d) Cooperative Program With State Agencies.--
       (1) In general.--The Secretary may establish a cooperative 
     program with State agencies managing motor vehicle fleets to 
     encourage purchase of fuel cell vehicles by the agencies.
       (2) Incentives.--In carrying out the cooperative program, 
     the Secretary may offer incentive payments to a State agency 
     to assist with the cost of planning, differential purchases, 
     and administration.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       (1) $15,000,000 for fiscal year 2008;
       (2) $25,000,000 for fiscal year 2009;
       (3) $65,000,000 for fiscal year 2010; and
       (4) such sums as are necessary for each of fiscal years 
     2011 through 2015.

     SEC. 733. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND 
                   MICRO FUEL CELLS.

       (a) Purposes.--The purposes of this section are--
       (1) to stimulate acceptance by the market of stationary, 
     portable, and micro fuel cells; and
       (2) to support development of technologies relating to 
     stationary, portable, and micro fuel cells.
       (b) Federal Leases and Purchases.--
       (1) In general.--Not later than January 1, 2006, the head 
     of any Federal agency that uses electrical power from 
     stationary, portable, or microportable devices shall lease or 
     purchase a stationary, portable, or micro fuel cell to meet 
     any applicable energy savings goal described in subsection 
     (c).
       (2) Costs of leases and purchases.--
       (A) In general.--The Secretary, in cooperation with the 
     Task Force and the Technical Advisory Committee, shall pay 
     the cost to Federal agencies (or share the cost under 
     interagency agreements) of leasing or purchasing stationary, 
     portable, and micro fuel cells under paragraph (1).
       (B) Competitive costs and management structures.--In 
     carrying out subparagraph (A), the Secretary, in consultation 
     with the agency, may use the General Services Administration 
     or any commercial vendor to ensure--
       (i) a cost-effective purchase of a stationary, portable, or 
     micro fuel cell; or
       (ii) a cost-effective management structure of the lease of 
     a stationary, portable, or micro fuel cell.
       (3) Exception.--
       (A) In general.--If the Secretary determines that the head 
     of an agency described in paragraph (1) cannot find an 
     appropriately efficient and reliable stationary, portable, or 
     micro fuel cell in accordance with paragraph (1), that agency 
     shall be excepted from compliance with paragraph (1).
       (B) Consideration.--In making a determination under 
     subparagraph (A), the Secretary shall consider--
       (i) the needs of the agency; and
       (ii) an evaluation performed by--

       (I) the Task Force; or
       (II) the Technical Advisory Committee of the Task Force.

       (c) Energy Savings Goals.--An agency that leases or 
     purchases a stationary, portable, or micro fuel cell in 
     accordance with subsection (b)(1) may use that lease or 
     purchase to count toward an energy savings goal described in 
     section 732(c)(1) that is applicable to the agency.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       (1) $20,000,000 for fiscal year 2006;
       (2) $50,000,000 for fiscal year 2007;
       (3) $75,000,000 for fiscal year 2008;
       (4) $100,000,000 for fiscal year 2009;
       (5) $100,000,000 for fiscal year 2010; and
       (6) such sums as are necessary for each of fiscal years 
     2011 through 2015.

                          TITLE VIII--HYDROGEN

     SEC. 801. HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

       The Spark M. Matsunaga Hydrogen Research, Development, and 
     Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is 
     amended to read as follows:

     ``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       ``(a) Short Title.--This Act may be cited as the `Spark M. 
     Matsunaga Hydrogen Research, Development, and Demonstration 
     Act of 1990'.
       ``(b) Table of Contents.--The table of contents of this Act 
     is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Purposes.
``Sec. 3. Definitions.

                   ``TITLE I--HYDROGEN AND FUEL CELLS

``Sec. 101. Hydrogen and fuel cell technology research and development.
``Sec. 102. Task Force.
``Sec. 103. Technology transfer.
``Sec. 104. Authorization of appropriations.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

``Sec. 201. Hydrogen Supply and Fuel Cell Demonstration Program.
``Sec. 202. Authorization of appropriations.

                   ``TITLE III--REGULATORY MANAGEMENT

``Sec. 301. Codes and standards.
``Sec. 302. Disclosure.
``Sec. 303. Authorization of appropriations.

                          ``TITLE IV--REPORTS

``Sec. 401. Deployment of hydrogen technology.
``Sec. 402. Authorization of appropriations.

                  ``TITLE V--TERMINATION OF AUTHORITY

``Sec. 501. Termination of authority.

     ``SEC. 2. PURPOSES.

       ``The purposes of this Act are--
       ``(1) to enable and promote comprehensive development, 
     demonstration, and commercialization of hydrogen and fuel 
     cell technology in partnership with industry;
       ``(2) to make critical public investments in building 
     strong links to private industry, institutions of higher 
     education, National Laboratories, and research institutions 
     to expand innovation and industrial growth;
       ``(3) to build a mature hydrogen economy that creates fuel 
     diversity in the massive transportation sector of the United 
     States;
       ``(4) to sharply decrease the dependency of the United 
     States on imported oil, eliminate most emissions from the 
     transportation sector, and greatly enhance our energy 
     security; and
       ``(5) to create, strengthen, and protect a sustainable 
     national energy economy.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Department.--The term `Department' means the 
     Department of Energy.
       ``(2) Fuel cell.--The term `fuel cell' means a device that 
     directly converts the chemical energy of a fuel, which is 
     supplied from an external source, and an oxidant into 
     electricity by electrochemical processes occurring at 
     separate electrodes in the device.
       ``(3) Heavy-duty vehicle.--The term `heavy-duty vehicle' 
     means a motor vehicle that--
       ``(A) is rated at more than 8,500 pounds gross vehicle 
     weight;
       ``(B) has a curb weight of more than 6,000 pounds; or
       ``(C) has a basic vehicle frontal area in excess of 45 
     square feet.
       ``(4) Infrastructure.--The term `infrastructure' means the 
     equipment, systems, or facilities used to produce, 
     distribute, deliver, or store hydrogen (except for onboard 
     storage).
       ``(5) Light-duty vehicle.--The term `light-duty vehicle' 
     means a motor vehicle that is rated at 8,500 or less pounds 
     gross vehicle weight.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(7) Stationary; portable.--The terms `stationary' and 
     `portable', when used in reference to a fuel cell, include--
       ``(A) continuous electric power; and
       ``(B) backup electric power.
       ``(8) Task force.--The term `Task Force' means the Hydrogen 
     and Fuel Cell Technical Task Force established under section 
     102(a).
       ``(9) Technical advisory committee.--The term `Technical 
     Advisory Committee' means the independent Technical Advisory 
     Committee of the Task Force selected under section 102(d).

                   ``TITLE I--HYDROGEN AND FUEL CELLS

     ``SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND 
                   DEVELOPMENT.

       ``(a) In General.--The Secretary, in consultation with 
     other Federal agencies and the private sector, shall conduct 
     a research and development program on technologies relating 
     to the production, purification, distribution, storage, and 
     use of hydrogen energy, fuel cells, and related 
     infrastructure.
       ``(b) Goal.--The goal of the program shall be to 
     demonstrate and commercialize the use of hydrogen for 
     transportation (in light-duty vehicles and heavy-duty 
     vehicles), utility, industrial, commercial and residential 
     applications.
       ``(c) Focus.--In carrying out activities under this 
     section, the Secretary shall focus on factors that are common 
     to the development of hydrogen infrastructure and the supply 
     of vehicle and electric power for critical consumer and 
     commercial applications, and that achieve continuous 
     technical evolution and cost reduction, particularly for 
     hydrogen production, the supply of hydrogen, storage of 
     hydrogen, and end uses of hydrogen that--

[[Page 12449]]

       ``(1) steadily increase production, distribution, and end 
     use efficiency and reduce life-cycle emissions;
       ``(2) resolve critical problems relating to catalysts, 
     membranes, storage, lightweight materials, electronic 
     controls, and other problems that emerge from research and 
     development;
       ``(3) enhance sources of renewable fuels and biofuels for 
     hydrogen production; and
       ``(4) enable widespread use of distributed electricity 
     generation and storage.
       ``(d) Public Education and Research.--In carrying out this 
     section, the Secretary shall support enhanced public 
     education and research conducted at institutions of higher 
     education in fundamental sciences, application design, and 
     systems concepts (including education and research relating 
     to materials, subsystems, manufacturability, maintenance, and 
     safety) relating to hydrogen and fuel cells.
       ``(e) Cost Sharing.--The costs of carrying out projects and 
     activities under this section shall be shared in accordance 
     with section 1002 of the Energy Policy Act of 2005.

     ``SEC. 102. TASK FORCE.

       ``(a) Establishment.--The Secretary, in consultation with 
     the Director of the Office of Science and Technology Policy, 
     shall establish an interagency Task Force, to be known as the 
     `Hydrogen and Fuel Cell Technical Task Force' to advise the 
     Secretary in carrying out programs under this Act.
       ``(b) Membership.--
       ``(1) In general.--The Task Force shall be comprised of 
     such representatives of the Office of Science and Technology 
     Policy, the Environmental Protection Agency, the Department 
     of Transportation, the Department of Defense, the National 
     Aeronautics and Space Administration, and such other members, 
     as the Secretary, in consultation with the Director of the 
     Office of Science and Technology Policy, determines to be 
     appropriate.
       ``(2) Voting.--A member of the Task Force that does not 
     represent a Federal agency shall serve on the Task Force only 
     in a nonvoting, advisory capacity.
       ``(c) Duties.--The Task Force shall review and make any 
     necessary recommendations to the Secretary on implementation 
     and conduct of programs under this Act.
       ``(d) Technical Advisory Committee.--
       ``(1) In general.--The Secretary shall select such number 
     of members as the Secretary considers to be appropriate to 
     form an independent, nonpolitical Technical Advisory 
     Committee.
       ``(2) Membership.--Each member of the Technical Advisory 
     Committee shall have scientific, technical, or industrial 
     expertise, as determined by the Secretary.
       ``(3) Duties.--The Technical Advisory Committee shall 
     provide technical advice and assistance to the Task Force and 
     the Secretary.

     ``SEC. 103. TECHNOLOGY TRANSFER.

       ``In carrying out this Act, the Secretary shall carry out 
     programs that--
       ``(1) provide for the transfer of critical hydrogen and 
     fuel cell technologies to the private sector;
       ``(2) accelerate wider application of those technologies in 
     the global market;
       ``(3) foster the exchange of generic, nonproprietary 
     information; and
       ``(4) assess technical and commercial viability of 
     technologies relating to the production, distribution, 
     storage, and use of hydrogen energy and fuel cells.

     ``SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Hydrogen Supply.--There are authorized to be 
     appropriated to carry out projects and activities relating to 
     hydrogen production, storage, distribution and dispensing, 
     transport, education and coordination, and technology 
     transfer under this title--
       ``(1) $160,000,000 for fiscal year 2006;
       ``(2) $200,000,000 for fiscal year 2007;
       ``(3) $220,000,000 for fiscal year 2008;
       ``(4) $230,000,000 for fiscal year 2009;
       ``(5) $250,000,000 for fiscal year 2010; and
       ``(6) such sums as are necessary for each of fiscal years 
     2011 through 2015.
       ``(b) Fuel Cell Technologies.--There are authorized to be 
     appropriated to carry out projects and activities relating to 
     fuel cell technologies under this title--
       ``(1) $150,000,000 for fiscal year 2006;
       ``(2) $160,000,000 for fiscal year 2007;
       ``(3) $170,000,000 for fiscal year 2008;
       ``(4) $180,000,000 for fiscal year 2009;
       ``(5) $200,000,000 for fiscal year 2010; and
       ``(6) such sums as are necessary for each of fiscal years 
     2011 through 2015.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

     ``SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEMONSTRATION 
                   PROGRAM.

       ``(a) In General.--The Secretary, in consultation with the 
     Task Force and the Technical Advisory Committee, shall carry 
     out a program to demonstrate developmental hydrogen and fuel 
     cell systems for mobile, portable, and stationary uses, using 
     improved versions of the learning demonstrations program 
     concept of the Department including demonstrations 
     involving--
       ``(1) light-duty vehicles;
       ``(2) heavy-duty vehicles;
       ``(3) fleet vehicles;
       ``(4) specialty industrial and farm vehicles; and
       ``(5) commercial and residential portable, continuous, and 
     backup electric power generation.
       ``(b) Other Demonstration Programs.--To develop widespread 
     hydrogen supply and use options, and assist evolution of 
     technology, the Secretary shall--
       ``(1) carry out demonstrations of evolving hydrogen and 
     fuel cell technologies in national parks, remote island 
     areas, and on Indian tribal land, as selected by the 
     Secretary;
       ``(2) in accordance with any code or standards developed in 
     a region, fund prototype, pilot fleet, and infrastructure 
     regional hydrogen supply corridors along the interstate 
     highway system in varied climates across the United States; 
     and
       ``(3) fund demonstration programs that explore the use of 
     hydrogen blends, hybrid hydrogen, and hydrogen reformed from 
     renewable agricultural fuels, including the use of hydrogen 
     in hybrid electric, heavier duty, and advanced internal 
     combustion-powered vehicles.
       ``(c) System Demonstrations.--
       ``(1) In general.--As a component of the demonstration 
     program under this section, the Secretary shall provide 
     grants, on a cost share basis as appropriate, to eligible 
     entities (as determined by the Secretary) for use in--
       ``(A) devising system design concepts that provide for the 
     use of advanced composite vehicles in programs under section 
     732 of the Energy Policy Act of 2005 that--
       ``(i) have as a primary goal the reduction of drive energy 
     requirements;
       ``(ii) after 2010, add another research and development 
     phase to the vehicle and infrastructure partnerships 
     developed under the learning demonstrations program concept 
     of the Department; and
       ``(iii) are managed through an enhanced FreedomCAR program 
     within the Department that encourages involvement in cost-
     shared projects by manufacturers and governments; and
       ``(B) designing a local distributed energy system that--
       ``(i) incorporates renewable hydrogen production, off-grid 
     electricity production, and fleet applications in industrial 
     or commercial service;
       ``(ii) integrates energy or applications described in 
     clause (i), such as stationary, portable, micro, and mobile 
     fuel cells, into a high-density commercial or residential 
     building complex or agricultural community; and
       ``(iii) is managed in cooperation with industry, State, 
     tribal, and local governments, agricultural organizations, 
     and nonprofit generators and distributors of electricity.
       ``(2) Cost sharing.--The costs of carrying out a project or 
     activity under this subsection shall be shared in accordance 
     with section 1002 of the Energy Policy Act of 2005.
       ``(d) Identification of New Research and Development 
     Requirements.--In carrying out the demonstrations under 
     subsection (a), the Secretary, in consultation with the Task 
     Force and the Technical Advisory Committee, shall--
       ``(1) after 2008 for stationary and portable applications, 
     and after 2010 for vehicles, identify new research and 
     development requirements that refine technological concepts, 
     planning, and applications; and
       ``(2) during the second phase of the learning 
     demonstrations under subsection (c)(1)(A)(ii) redesign 
     subsequent research and development to incorporate those 
     requirements.

     ``SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title--
       ``(1) $185,000,000 for fiscal year 2006;
       ``(2) $200,000,000 for fiscal year 2007;
       ``(3) $250,000,000 for fiscal year 2008;
       ``(4) $300,000,000 for fiscal year 2009;
       ``(5) $375,000,000 for fiscal year 2010; and
       ``(6) such sums as are necessary for each of fiscal years 
     2011 through 2015.

                   ``TITLE III--REGULATORY MANAGEMENT

     ``SEC. 301. CODES AND STANDARDS.

       ``(a) In General.--The Secretary, in cooperation with the 
     Task Force, shall provide grants to, or offer to enter into 
     contracts with such professional organizations, public 
     service organizations, and government agencies as the 
     Secretary determines appropriate to support timely and 
     extensive development of safety codes and standards relating 
     to fuel cell vehicles, hydrogen energy systems, and 
     stationary, portable, and micro fuel cells.
       ``(b) Educational Efforts.--The Secretary shall support 
     educational efforts by organizations and agencies described 
     in subsection (a) to share information, including information 
     relating to best practices, among those organizations and 
     agencies.

     ``SEC. 302. DISCLOSURE.

       ``Section 623 of the Energy Policy Act of 1992 (42 U.S.C. 
     13293) shall apply to any project carried out through a 
     grant, cooperative agreement, or contract under this Act.

     ``SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title--
       ``(1) $4,000,000 for fiscal year 2006;
       ``(2) $7,000,000 for fiscal year 2007;
       ``(3) $8,000,000 for fiscal year 2008;
       ``(4) $10,000,000 for fiscal year 2009;
       ``(5) $9,000,000 for fiscal year 2010; and
       ``(6) such sums as are necessary for each of fiscal years 
     2011 and 2012.

[[Page 12450]]



                          ``TITLE IV--REPORTS

     ``SEC. 401. DEPLOYMENT OF HYDROGEN TECHNOLOGY.

       ``(a) Secretary.--Subject to subsection (c), not later than 
     2 years after the date of enactment of the Hydrogen and Fuel 
     Cell Technology Act of 2005, and triennially thereafter, the 
     Secretary shall submit to Congress a report describing--
       ``(1) any activity carried out by the Department of Energy 
     under this Act, including a research, development, 
     demonstration, and commercial application program for 
     hydrogen and fuel cell technology;
       ``(2) measures the Secretary has taken during the preceding 
     3 years to support the transition of primary industry (or a 
     related industry) to a fully commercialized hydrogen economy;
       ``(3) any change made to a research, development, or 
     deployment strategy of the Secretary relating to hydrogen and 
     fuel cell technology to reflect the results of a learning 
     demonstration under title II;
       ``(4) progress, including progress in infrastructure, made 
     toward achieving the goal of producing and deploying not less 
     than--
       ``(A) 100,000 hydrogen-fueled vehicles in the United States 
     by 2010; and
       ``(B) 2,500,000 hydrogen-fueled vehicles by 2020;
       ``(5) progress made toward achieving the goal of supplying 
     hydrogen at a sufficient number of fueling stations in the 
     United States by 2010 can be achieved by integrating--
       ``(A) hydrogen activities; and
       ``(B) associated targets and timetables for the development 
     of hydrogen technologies;
       ``(6) any problem relating to the design, execution, or 
     funding of a program under this Act;
       ``(7) progress made toward and goals achieved in carrying 
     out this Act and updates to the developmental roadmap, 
     including the results of the reviews conducted by the 
     National Academy of Sciences under subsection (b) for the 
     fiscal years covered by the report; and
       ``(8) any updates to strategic plans that are necessary to 
     meet the goals described in paragraph (4).
       ``(b) National Academy of Sciences.--
       ``(1) In general.--The Secretary shall enter into an 
     arrangement with the National Academy of Sciences to conduct 
     and submit to the Secretary, not later than September 30, 
     2007, and triennially thereafter--
       ``(A) the results of a review of the projects and 
     activities carried out under this Act;
       ``(B) recommendations for any new authorities or resources 
     needed to achieve strategic goals; and
       ``(C) recommendations for approaches by which the Secretary 
     could achieve a substantial decrease in the dependence on and 
     consumption of natural gas and imported oil by the Federal 
     Government, including by increasing the use of fuel cell 
     vehicles, stationary and portable fuel cells, and hydrogen 
     energy systems.
       ``(2) Reauthorization.--The Secretary shall use the results 
     of reviews conducted under paragraph (1) in proposing to 
     Congress any legislative changes relating to reauthorization 
     of this Act.

     ``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title $1,500,000 for each of fiscal years 2006 through 2010.

                  ``TITLE V--TERMINATION OF AUTHORITY

     ``SEC. 501. TERMINATION OF AUTHORITY.

       ``This Act and the authority provided by this Act terminate 
     on September 30, 2015.''.

                   TITLE IX--RESEARCH AND DEVELOPMENT

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Energy Research, 
     Development, Demonstration, and Commercial Application Act of 
     2005''.

     SEC. 902. GOALS.

       (a) In General.--In order to achieve the purposes of this 
     title, the Secretary shall conduct a balanced set of programs 
     of energy research, development, demonstration, and 
     commercial application focused on--
       (1) increasing the efficiency of all energy intensive 
     sectors through conservation and improved technologies;
       (2) promoting diversity of energy supply;
       (3) decreasing the dependence of the United States on 
     foreign energy supplies;
       (4) improving the energy security of the United States; and
       (5) decreasing the environmental impact of energy-related 
     activities.
       (b) Goals.--The Secretary shall publish measurable cost and 
     performance-based goals with each annual budget submission in 
     at least the following areas:
       (1) Energy efficiency for buildings, energy-consuming 
     industries, and vehicles.
       (2) Electric energy generation (including distributed 
     generation), transmission, and storage.
       (3) Renewable energy technologies, including wind power, 
     photovoltaics, solar thermal systems, geothermal energy, 
     hydrogen-fueled systems, biomass-based systems, biofuels, and 
     hydropower.
       (4) Fossil energy, including power generation, onshore and 
     offshore oil and gas resource recovery, and transportation.
       (5) Nuclear energy, including programs for existing and 
     advanced reactors, and education of future specialists.
       (c) Public Comment.--The Secretary shall provide mechanisms 
     for input on the annually published goals from industry, 
     institutions of higher education, and other public sources.
       (d) Effect of Goals.--Nothing in subsection (a) or the 
     annually published goals creates any new authority for any 
     Federal agency, or may be used by any Federal agency, to 
     support the establishment of regulatory standards or 
     regulatory requirements.

     SEC. 903. DEFINITIONS.

       In this title:
       (1) Departmental mission.--The term ``departmental 
     mission'' means any of the functions vested in the Secretary 
     by the Department of Energy Organization Act (42 U.S.C. 7101 
     et seq.) or other law.
       (2) Hispanic-serving institution.--The term ``Hispanic-
     serving institution'' has the meaning given the term in 
     section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).
       (3) Nonmilitary energy laboratory.--The term ``nonmilitary 
     energy laboratory'' means a National Laboratory other than a 
     National Laboratory listed in subparagraph (G), (H), or (N) 
     of section 2(3).
       (4) Part b institution.--The term ``part B institution'' 
     has the meaning given the term in section 322 of the Higher 
     Education Act of 1965 (20 U.S.C. 1061).
       (5) Single-purpose research facility.--The term ``single-
     purpose research facility'' means--
       (A) any of the primarily single-purpose entities owned by 
     the Department; or
       (B) any other organization of the Department designated by 
     the Secretary.

                     Subtitle A--Energy Efficiency

     SEC. 911. ENERGY EFFICIENCY.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out energy efficiency and conservation 
     research, development, demonstration, and commercial 
     application activities, including activities authorized under 
     this subtitle--
       (1) $772,000,000 for fiscal year 2006;
       (2) $865,000,000 for fiscal year 2007; and
       (3) $920,000,000 for fiscal year 2008.
       (b) Allocations.--From amounts authorized under subsection 
     (a), the following sums are authorized:
       (1) For activities under section 912, $50,000,000 for each 
     of fiscal years 2006 through 2008.
       (2) For activities under section 914, $7,000,000 for each 
     of fiscal years 2006 through 2008.
       (3) For activities under section 915--
       (A) $30,000,000 for fiscal year 2006;
       (B) $35,000,000 for fiscal year 2007; and
       (C) $40,000,000 for fiscal year 2008.
       (c) Extended Authorization.--There are authorized to be 
     appropriated to the Secretary to carry out section 912 
     $50,000,000 for each of fiscal years 2009 through 2013.
       (d) Limitations.--None of the funds authorized to be 
     appropriated under this section may be used for--
       (1) the issuance or implementation of energy efficiency 
     regulations;
       (2) the weatherization program established under part A of 
     title IV of the Energy Conservation and Production Act (42 
     U.S.C. 6861 et seq.);
       (3) a State energy conservation plan established under part 
     D of title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6321 et seq.); or
       (4) a Federal energy management measure carried out under 
     part 3 of title V of the National Energy Conservation Policy 
     Act (42 U.S.C. 8251 et seq.).

     SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

       (a) Definitions.--In this section:
       (1) Advanced solid-state lighting.--The term ``advanced 
     solid-state lighting'' means a semiconducting device package 
     and delivery system that produces white light using 
     externally applied voltage.
       (2) Industry alliance.--The term ``Industry Alliance'' 
     means an entity selected by the Secretary under subsection 
     (d).
       (3) Initiative.--The term ``Initiative'' means the Next 
     Generation Lighting Initiative carried out under this 
     section.
       (4) Research.--The term ``research'' includes research on 
     the technologies, materials, and manufacturing processes 
     required for white light emitting diodes.
       (5) White light emitting diode.--The term ``white light 
     emitting diode'' means a semiconducting package, using either 
     organic or inorganic materials, that produces white light 
     using externally applied voltage.
       (b) Initiative.--The Secretary shall carry out a Next 
     Generation Lighting Initiative in accordance with this 
     section to support research, development, demonstration, and 
     commercial application activities related to advanced solid-
     state lighting technologies based on white light emitting 
     diodes.
       (c) Objectives.--The objectives of the Initiative shall be 
     to develop advanced solid-state organic and inorganic 
     lighting technologies based on white light emitting diodes 
     that, compared to incandescent and fluorescent lighting 
     technologies, are longer lasting, are more energy-efficient 
     and cost-competitive, and have less environmental impact.
       (d) Industry Alliance.--Not later than 90 days after the 
     date of enactment of this Act, the Secretary shall 
     competitively select an Industry Alliance to represent 
     participants

[[Page 12451]]

     who are private, for-profit firms that, as a group, are 
     broadly representative of United States solid state lighting 
     research, development, infrastructure, and manufacturing 
     expertise as a whole.
       (e) Research.--
       (1) Grants.--The Secretary shall carry out the research 
     activities of the Initiative through competitively awarded 
     grants to--
       (A) researchers, including Industry Alliance participants;
       (B) National Laboratories; and
       (C) institutions of higher education.
       (2) Industry alliance.--The Secretary shall annually 
     solicit from the Industry Alliance--
       (A) comments to identify solid-state lighting technology 
     needs;
       (B) an assessment of the progress of the research 
     activities of the Initiative; and
       (C) assistance in annually updating solid-state lighting 
     technology roadmaps.
       (3) Availability to public.--The information and roadmaps 
     under paragraph (2) shall be available to the public.
       (f) Development, Demonstration, and Commercial 
     Application.--
       (1) In general.--The Secretary shall carry out a 
     development, demonstration, and commercial application 
     program for the Initiative through competitively selected 
     awards.
       (2) Preference.--In making the awards, the Secretary may 
     give preference to participants in the Industry Alliance.
       (g) Cost Sharing.--In carrying out this section, the 
     Secretary shall require cost sharing in accordance with 
     section 1002.
       (h) Intellectual Property.--The Secretary may require (in 
     accordance with section 202(a)(ii) of title 35, United States 
     Code, section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2182), and section 9 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5908)) that 
     for any new invention developed under subsection (e)--
       (1) that the Industry Alliance participants who are active 
     participants in research, development, and demonstration 
     activities related to the advanced solid-state lighting 
     technologies that are covered by this section shall be 
     granted the first option to negotiate with the invention 
     owner, at least in the field of solid-state lighting, 
     nonexclusive licenses and royalties on terms that are 
     reasonable under the circumstances;
       (2)(i) that, for 1 year after a United States patent is 
     issued for the invention, the patent holder shall not 
     negotiate any license or royalty with any entity that is not 
     a participant in the Industry Alliance described in paragraph 
     (1); and
       (ii) that, during the year described in clause (i), the 
     patent holder shall negotiate nonexclusive licenses and 
     royalties in good faith with any interested participant in 
     the Industry Alliance described in paragraph (1); and
       (3) such other terms as the Secretary determines are 
     required to promote accelerated commercialization of 
     inventions made under the Initiative.
       (i) National Academy Review.--The Secretary shall enter 
     into an arrangement with the National Academy of Sciences to 
     conduct periodic reviews of the Initiative.

     SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

       (a) Interagency Group.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Director of the Office of Science 
     and Technology Policy shall establish an interagency group to 
     develop, in coordination with the advisory committee 
     established under subsection (e), a National Building 
     Performance Initiative (referred to in this section as the 
     ``Initiative'').
       (2) Cochairs.--The interagency group shall be co-chaired by 
     appropriate officials of the Department and the Department of 
     Commerce, who shall jointly arrange for the provision of 
     necessary administrative support to the group.
       (b) Integration of Efforts.--The Initiative shall integrate 
     Federal, State, and voluntary private sector efforts to 
     reduce the costs of construction, operation, maintenance, and 
     renovation of commercial, industrial, institutional, and 
     residential buildings.
       (c) Plan.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the interagency group shall submit to 
     Congress a plan for carrying out the appropriate Federal role 
     in the Initiative.
       (2) Inclusions.--The plan shall include--
       (A) research, development, demonstration, and commercial 
     application of systems and materials for new construction and 
     retrofit relating to the building envelope and building 
     system components;
       (B) research, development, demonstration, and commercial 
     application to develop technology and infrastructure enabling 
     the energy efficient, automated operation of buildings and 
     building equipment; and
       (C) the collection, analysis, and dissemination of research 
     results and other pertinent information on enhancing building 
     performance to industry, government entities, and the public.
       (d) Department of Energy Role.--Within the Federal portion 
     of the Initiative, the Department shall be the lead agency 
     for all aspects of building performance related to use and 
     conservation of energy.
       (e) Advisory Committee.--The Director of the Office of 
     Science and Technology Policy shall establish an advisory 
     committee to--
       (1) analyze and provide recommendations on potential 
     private sector roles and participation in the Initiative; and
       (2) review and provide recommendations on the plan 
     described in subsection (c).
       (f) Administration.--Nothing in this section provides any 
     Federal agency with new authority to regulate building 
     performance.

     SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

       (a) Definitions.--In this section:
       (1) Battery.--The term ``battery'' means an energy storage 
     device that previously has been used to provide motive power 
     in a vehicle powered in whole or in part by electricity.
       (2) Associated equipment.--The term ``associated 
     equipment'' means equipment located where the batteries will 
     be used that is necessary to enable the use of the energy 
     stored in the batteries.
       (b) Program.--
       (1) In general.--The Secretary shall establish and conduct 
     a research, development, demonstration, and commercial 
     application program for the secondary use of batteries.
       (2) Administration.--The program shall be--
       (A) designed to demonstrate the use of batteries in 
     secondary applications, including utility and commercial 
     power storage and power quality;
       (B) structured to evaluate the performance, including 
     useful service life and costs, of such batteries in field 
     operations, and the necessary supporting infrastructure, 
     including reuse and disposal of batteries; and
       (C) coordinated with ongoing secondary battery use programs 
     at the National Laboratories and in industry.
       (c) Solicitation.--
       (1) In general.--Not later than 180 days after the date of 
     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.
       (2) Additional solicitations.--The Secretary may make 
     additional solicitations for proposals if the Secretary 
     determines that the solicitations are necessary to carry out 
     this section.
       (d) Selection of Proposals.--
       (1) In general.--Not later than 90 days after the closing 
     date established by the Secretary for receipt of proposals 
     under subsection (c), the Secretary shall select up to 5 
     proposals that may receive financial assistance under this 
     section once the Department receives appropriated funds to 
     carry out this section.
       (2) Factors.--In selecting proposals, the Secretary shall 
     consider--
       (A) the diversity of battery type;
       (B) geographic and climatic diversity; and
       (C) life-cycle environmental effects of the approaches.
       (3) Limitation.--No 1 project selected under this section 
     shall receive more than 25 percent of the funds made 
     available to carry out the program under this section.
       (4) Nonfederal involvement.--In selecting proposals, the 
     Secretary shall consider the extent of involvement of State 
     or local government and other persons in each demonstration 
     project to optimize use of Federal resources.
       (5) Other criteria.--In selecting proposals, the Secretary 
     may consider such other criteria as the Secretary considers 
     appropriate.
       (e) Conditions.--In carrying out this section, the 
     Secretary shall require that--
       (1) relevant information be provided to--
       (A) the Department;
       (B) the users of the batteries;
       (C) the proposers of a project under this section; and
       (D) the battery manufacturers; and
       (2) the costs of carrying out projects and activities under 
     this section are shared in accordance with section 1002.

     SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE.

       (a) Establishment.--The Secretary shall establish an Energy 
     Efficiency Science Initiative to be managed by the Assistant 
     Secretary in the Department with responsibility for energy 
     conservation under section 203(a)(9) of the Department of 
     Energy Organization Act (42 U.S.C. 7133(a)(9)), in 
     consultation with the Director of the Office of Science, for 
     grants to be competitively awarded and subject to peer review 
     for research relating to energy efficiency.
       (b) Report.--The Secretary shall submit to Congress, along 
     with the annual budget request of the President submitted to 
     Congress, a report on the activities of the Energy Efficiency 
     Science Initiative, including a description of the process 
     used to award the funds and an explanation of how the 
     research relates to energy efficiency.

       Subtitle B--Distributed Energy and Electric Energy Systems

     SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

       (a) In General.--
       (1) Distributed energy and electric energy systems 
     activities.--There are authorized to be appropriated to the 
     Secretary to

[[Page 12452]]

     carry out distributed energy and electric energy systems 
     activities, including activities authorized under this 
     subtitle--
       (A) $220,000,000 for fiscal year 2006;
       (B) $240,000,000 for fiscal year 2007; and
       (C) $260,000,000 for fiscal year 2008.
       (2) Power delivery research initiative.--There are 
     authorized to be appropriated to the Secretary to carry out 
     the Policy Delivery Research Initiative under subsection 
     925(e)--
       (A) $30,000,000 for fiscal year 2006;
       (B) $35,000,000 for fiscal year 2007; and
       (C) $40,000,000 for fiscal year 2008.
       (b) Micro-Cogeneration Energy Technology.--From amounts 
     authorized under subsection (a), $20,000,000 for each of 
     fiscal years 2006 and 2007 shall be available to carry out 
     activities under section 924.

     SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM.

       (a) In General.--The Secretary shall establish a 
     comprehensive research, development, demonstration, and 
     commercial application program to improve the energy 
     efficiency of high power density facilities, including data 
     centers, server farms, and telecommunications facilities.
       (b) Technologies.--The program shall consider technologies 
     that provide significant improvement in thermal controls, 
     metering, load management, peak load reduction, or the 
     efficient cooling of electronics.

     SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY.

       (a) In General.--The Secretary shall make competitive, 
     merit-based grants to consortia for the development of micro-
     cogeneration energy technology.
       (b) Uses.--The consortia shall explore--
       (1) the use of small-scale combined heat and power in 
     residential heating appliances;
       (2) the use of excess power to operate other appliances 
     within the residence; and
       (3) the supply of excess generated power to the power grid.

     SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION 
                   PROGRAM.

       The Secretary may provide financial assistance to 
     coordinating consortia of interdisciplinary participants for 
     demonstrations designed to accelerate the use of distributed 
     energy technologies (such as fuel cells, microturbines, 
     reciprocating engines, thermally activated technologies, and 
     combined heat and power systems) in highly energy intensive 
     commercial applications.

     SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

       (a) Demonstration Program.--The Secretary shall establish a 
     comprehensive research, development, and demonstration 
     program to ensure the reliability, efficiency, and 
     environmental integrity of electrical transmission and 
     distribution systems, which shall include--
       (1) advanced energy and energy storage technologies, 
     materials, and systems, giving priority to new transmission 
     technologies, including composite conductor materials and 
     other technologies that enhance reliability, operational 
     flexibility, or power-carrying capability;
       (2) advanced grid reliability and efficiency technology 
     development;
       (3) technologies contributing to significant load 
     reductions;
       (4) advanced metering, load management, and control 
     technologies;
       (5) technologies to enhance existing grid components;
       (6) the development and use of high-temperature 
     superconductors to--
       (A) enhance the reliability, operational flexibility, or 
     power-carrying capability of electric transmission or 
     distribution systems; or
       (B) increase the efficiency of electric energy generation, 
     transmission, distribution, or storage systems;
       (7) integration of power systems, including systems to 
     deliver high-quality electric power, electric power 
     reliability, and combined heat and power;
       (8) supply of electricity to the power grid by small scale, 
     distributed and residential-based power generators;
       (9) the development and use of advanced grid design, 
     operation, and planning tools;
       (10) any other infrastructure technologies, as appropriate; 
     and
       (11) technology transfer and education.
       (b) Program Plan.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     other appropriate Federal agencies, shall prepare and submit 
     to Congress a 5-year program plan to guide activities under 
     this section.
       (2) Consultation.--In preparing the program plan, the 
     Secretary shall consult with--
       (A) utilities;
       (B) energy service providers;
       (C) manufacturers;
       (D) institutions of higher education;
       (E) other appropriate State and local agencies;
       (F) environmental organizations;
       (G) professional and technical societies; and
       (H) any other persons the Secretary considers appropriate.
       (c) Implementation.--The Secretary shall consider 
     implementing the program under this section using a 
     consortium of participants from industry, institutions of 
     higher education, and National Laboratories.
       (d) Report.--Not later than 2 years after the submission of 
     the plan under subsection (b), the Secretary shall submit to 
     Congress a report--
       (1) describing the progress made under this section; and
       (2) identifying any additional resources needed to continue 
     the development and commercial application of transmission 
     and distribution of infrastructure technologies.
       (e) Power Delivery Research Initiative.--
       (1) In general.--The Secretary shall establish a research, 
     development, and demonstration initiative specifically 
     focused on power delivery using components incorporating high 
     temperature superconductivity.
       (2) Goals.--The goals of the Initiative shall be--
       (A) to establish world-class facilities to develop high 
     temperature superconductivity power applications in 
     partnership with manufacturers and utilities;
       (B) to provide technical leadership for establishing 
     reliability for high temperature superconductivity power 
     applications, including suitable modeling and analysis;
       (C) to facilitate the commercial transition toward direct 
     current power transmission, storage, and use for high power 
     systems using high temperature superconductivity; and
       (D) to facilitate the integration of very low impedance 
     high temperature superconducting wires and cables in existing 
     electric networks to improve system performance, power flow 
     control, and reliability.
       (3) Inclusions.--The Initiative shall include--
       (A) feasibility analysis, planning, research, and design to 
     construct demonstrations of superconducting links in high 
     power, direct current, and controllable alternating current 
     transmission systems;
       (B) public-private partnerships to demonstrate deployment 
     of high temperature superconducting cable into testbeds 
     simulating a realistic transmission grid and under varying 
     transmission conditions, including actual grid insertions; 
     and
       (C) testbeds developed in cooperation with National 
     Laboratories, industries, and institutions of higher 
     education to--
       (i) demonstrate those technologies;
       (ii) prepare the technologies for commercial introduction; 
     and
       (iii) address cost or performance roadblocks to successful 
     commercial use.
       (f) Transmission and Distribution Grid Planning and 
     Operations Initiative.--
       (1) In general.--The Secretary shall establish a research, 
     development, and demonstration initiative specifically 
     focused on tools needed to plan, operate, and expand the 
     transmission and distribution grids in the presence of 
     competitive market mechanisms for energy, load demand, 
     customer response, and ancillary services.
       (2) Goals.--The goals of the Initiative shall be--
       (A)(i) to develop and use a geographically distributed 
     center, consisting of institutions of higher education, and 
     National Laboratories, with expertise and facilities to 
     develop the underlying theory and software for power system 
     application; and
       (ii) to ensure commercial development in partnership with 
     software vendors and utilities;
       (B) to provide technical leadership in engineering and 
     economic analysis for the reliability and efficiency of power 
     systems planning and operations in the presence of 
     competitive markets for electricity;
       (C) to model, simulate, and experiment with new market 
     mechanisms and operating practices to understand and optimize 
     those new methods before actual use; and
       (D) to provide technical support and technology transfer to 
     electric utilities and other participants in the domestic 
     electric industry and marketplace.

                      Subtitle C--Renewable Energy

     SEC. 931. RENEWABLE ENERGY.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out renewable energy research, 
     development, demonstration, and commercial application 
     activities, including activities authorized under this 
     subtitle--
       (1) $610,000,000 for fiscal year 2006;
       (2) $659,000,000 for fiscal year 2007; and
       (3) $710,000,000 for fiscal year 2008.
       (b) Bioenergy.--From the amounts authorized under 
     subsection (a), there are authorized to be appropriated to 
     carry out section 932--
       (1) $167,650,000 for fiscal year 2006;
       (2) $180,000,000 for fiscal year 2007; and
       (3) $192,000,000 for fiscal year 2008.
       (c) Concentrating Solar Power.--From amounts authorized 
     under subsection (a), there is authorized to be appropriated 
     to carry out section 933 $50,000,000 for each of fiscal years 
     2006 through 2008.
       (d) Administration.--Of the funds authorized under 
     subsection (b), not less than $5,000,000 for each fiscal year 
     shall be made available for grants to--
       (1) part B institutions;
       (2) Tribal Colleges or Universities (as defined in section 
     316(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1059c(b))); and
       (3) Hispanic-serving institutions.
       (e) Consultation.--In carrying out this section, the 
     Secretary, in consultation with

[[Page 12453]]

     the Secretary of Agriculture, shall demonstrate the use of--
       (1) advanced wind power technology, including combined use 
     with coal gasification;
       (2) biomass;
       (3) geothermal energy systems; and
       (4) other renewable energy technologies to assist in 
     delivering electricity to rural and remote locations.

     SEC. 932. BIOENERGY PROGRAM.

       (a) Definition of Cellulosic Feedstock.--In this section, 
     the term ``cellulosic feedstock'' means any portion of a crop 
     not normally used in food production or any nonfood crop 
     grown for the purpose of producing biomass feedstock.
       (b) Program.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application for bioenergy, including--
       (1) biopower energy systems;
       (2) biofuels;
       (3) bioproducts;
       (4) integrated biorefineries that may produce biopower, 
     biofuels, and bioproducts;
       (5) cross-cutting research and development in feedstocks; 
     and
       (6) economic analysis.
       (c) Biofuels and Bioproducts.--The goals of the biofuels 
     and bioproducts programs shall be to develop, in partnership 
     with industry and institutions of higher education--
       (1) advanced biochemical and thermo-
     chemical conversion technologies capable of making fuels from 
     cellulosic feedstocks that are price-competitive with 
     gasoline or diesel in either internal combustion engines or 
     fuel cell-powered vehicles;
       (2) advanced biotechnology processes capable of making 
     biofuels and bioproducts with emphasis on development of 
     biorefinery technologies using enzyme-based processing 
     systems;
       (3) advanced biotechnology processes capable of increasing 
     energy production from cellulosic feedstocks, with emphasis 
     on reducing the dependence of industry on fossil fuels in 
     manufacturing facilities; and
       (4) other advanced processes that will enable the 
     development of cost-effective bioproducts, including 
     biofuels.
       (d) Repeal of Sunset Provision.--Section 311 of the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 8101 note) is 
     repealed.

     SEC. 933. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

       (a) In General.--The Secretary shall conduct a program of 
     research and development to evaluate the potential for 
     concentrating solar power for hydrogen production, including 
     cogeneration approaches for both hydrogen and electricity.
       (b) Administration.--The program shall take advantage of 
     existing facilities to the extent practicable and shall 
     include--
       (1) development of optimized technologies that are common 
     to both electricity and hydrogen production;
       (2) evaluation of thermochemical cycles for hydrogen 
     production at the temperatures attainable with concentrating 
     solar power;
       (3) evaluation of materials issues for the thermochemical 
     cycles described in paragraph (2);
       (4) cogeneration of solar thermal electric power and photo-
     synthetic-based hydrogen production;
       (5) system architectures and economics studies; and
       (6) coordination with activities under the Advanced Reactor 
     Hydrogen Co-generation Project established under subtitle C 
     of title VI on high temperature materials, thermochemical 
     cycles, and economic issues.
       (c) Assessment.--In carrying out the program under this 
     section, the Secretary shall--
       (1) assess conflicting guidance on the economic potential 
     of concentrating solar power for electricity production 
     received from the National Research Council in the report 
     entitled ``Renewable Power Pathways: A Review of the U.S. 
     Department of Energy's Renewable Energy Programs'' and dated 
     2000 and subsequent reviews of that report funded by the 
     Department; and
       (2) provide an assessment of the potential impact of 
     technology used to concentrate solar power for electricity 
     before, or concurrent with, submission of the budget for 
     fiscal year 2007.
       (d) Report.--Not later than 5 years after the date of 
     enactment of this Act, the Secretary shall provide to 
     Congress a report on the economic and technical potential for 
     electricity or hydrogen production, with or without 
     cogeneration, with concentrating solar power, including the 
     economic and technical feasibility of potential construction 
     of a pilot demonstration facility suitable for commercial 
     production of electricity or hydrogen from concentrating 
     solar power.

     SEC. 934. HYBRID SOLAR LIGHTING RESEARCH AND DEVELOPMENT 
                   PROGRAM.

       (a) Definition of Hybrid Solar Lighting.--In this section, 
     the term ``hybrid solar lighting'' means a novel lighting 
     system that integrates sunlight and electrical lighting in 
     complement to each other in common lighting fixtures for the 
     purpose of improving energy efficiency.
       (b) Program.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application for hybrid solar lighting aimed at developing 
     hybrid solar lighting systems that are--
       (1) designed to eliminate large roof penetrations and 
     associated architectural design and maintenance problems that 
     limit the conventional use of daylight in most buildings;
       (2) easily integrated with electric lights; and
       (3) compatible with a majority of electric lamps and light 
     fixtures.
       (c) Limitations.--Funding authorized under this section 
     shall not be used for lighting systems based on conventional 
     daylighting installations such as skylights, light wells, 
     light shelves, or roof monitors.
       (d) National Academy of Sciences.--Not later than 2 years 
     after the date of enactment of this Act, the Secretary shall 
     enter into an arrangement with the National Academy of 
     Sciences to conduct a biannual review of the activities under 
     this section including program priorities, technical 
     milestones, and opportunities for technology transfer and 
     commercialization.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $4,000,000 for fiscal year 2006;
       (2) $6,000,000 for fiscal year 2007; and
       (3) $6,000,000 for fiscal year 2008.

     SEC. 935. MISCELLANEOUS PROJECTS.

       The Secretary shall conduct research, development, 
     demonstration, and commercial application programs for--
       (1) ocean energy, including wave energy;
       (2) the combined use of renewable energy technologies with 
     1 another and with other energy technologies, including the 
     combined use of wind power and coal gasification 
     technologies; and
       (3) renewable energy technologies for cogeneration of 
     hydrogen and electricity.

                       Subtitle D--Nuclear Energy

     SEC. 941. NUCLEAR ENERGY.

       (a) Core Programs.--There are authorized to be appropriated 
     to the Secretary to carry out nuclear energy research, 
     development, demonstration, and commercial application 
     activities, including activities authorized under this 
     subtitle, other than those described in subsection (b)--
       (1) $330,000,000 for fiscal year 2006;
       (2) $355,000,000 for fiscal year 2007; and
       (3) $495,000,000 for fiscal year 2008.
       (b) Nuclear Infrastructure Support.--There are authorized 
     to be appropriated to the Secretary to carry out activities 
     under section 942(f):
       (1) $135,000,000 for fiscal year 2006;
       (2) $140,000,000 for fiscal year 2007; and
       (3) $145,000,000 for fiscal year 2008.
       (c) Allocations.--From amounts authorized under subsection 
     (a), the following sums are authorized:
       (1) For activities under section 943--
       (A) $150,000,000 for fiscal year 2006;
       (B) $155,000,000 for fiscal year 2007; and
       (C) $275,000,000 for fiscal year 2008.
       (2) For activities under section 944--
       (A) $43,600,000 for fiscal year 2006;
       (B) $50,100,000 for fiscal year 2007; and
       (C) $56,000,000 for fiscal year 2008.
       (3) For activities under section 946, $6,000,000 for each 
     of fiscal years 2006 through 2008.
       (d) Limitation.--None of the funds authorized under this 
     section may be used to decommission the Fast Flux Test 
     Facility.

     SEC. 942. NUCLEAR ENERGY RESEARCH PROGRAMS.

       (a) Nuclear Energy Research Initiative.--The Secretary 
     shall carry out a Nuclear Energy Research Initiative for 
     research and development related to nuclear energy.
       (b) Nuclear Energy Plant Optimization Program.--The 
     Secretary shall carry out a Nuclear Energy Plant Optimization 
     Program to support research and development activities 
     addressing reliability, availability, productivity, component 
     aging, safety, and security of existing nuclear power plants.
       (c) Nuclear Power 2010 Program.--
       (1) In general.--The Secretary shall carry out a Nuclear 
     Power 2010 Program, consistent with recommendations of the 
     Nuclear Energy Research Advisory Committee of the Department 
     in the report entitled ``A Roadmap to Deploy New Nuclear 
     Power Plants in the United States by 2010'' and dated October 
     2001.
       (2) Administration.--The Program shall include--
       (A) use of the expertise and capabilities of industry, 
     institutions of higher education, and National Laboratories 
     in evaluation of advanced nuclear fuel cycles and fuels 
     testing;
       (B) consideration of a variety of reactor designs suitable 
     for both developed and developing nations;
       (C) participation of international collaborators in 
     research, development, and design efforts, as appropriate; 
     and
       (D) encouragement for participation by institutions of 
     higher education and industry.
       (d) Generation IV Nuclear Energy Systems Initiative.--
       (1) In general.--The Secretary shall carry out a Generation 
     IV Nuclear Energy Systems Initiative to develop an overall 
     technology plan for and to support research and development 
     necessary to make an informed technical decision about the 
     most promising candidates for eventual commercial 
     application.

[[Page 12454]]

       (2) Administration.--In conducting the Initiative, the 
     Secretary shall examine advanced proliferation-resistant and 
     passively safe reactor designs, including designs that--
       (A) are economically competitive with other electric power 
     generation plants;
       (B) have higher efficiency, lower cost, and improved safety 
     compared to reactors in operation on the date of enactment of 
     this Act;
       (C) use fuels that are proliferation resistant and have 
     substantially reduced production of high-level waste per unit 
     of output; and
       (D) use improved instrumentation.
       (e) Reactor Production of Hydrogen.--The Secretary shall 
     carry out research to examine designs for high-temperature 
     reactors capable of producing large-scale quantities of 
     hydrogen using thermochemical processes.
       (f) Nuclear Infrastructure Support.--
       (1) In general.--The Secretary shall--
       (A) develop and implement a strategy for the facilities of 
     the Office of Nuclear Energy, Science, and Technology; and
       (B) submit to Congress a report describing the strategy, 
     along with the budget request of the President submitted to 
     Congress for fiscal year 2006.
       (2) Administration.--The strategy shall provide a cost-
     effective means for--
       (A) maintaining existing facilities and infrastructure;
       (B) closing unneeded facilities;
       (C) making facility upgrades and modifications; and
       (D) building new facilities.

     SEC. 943. ADVANCED FUEL CYCLE INITIATIVE.

       (a) In General.--The Secretary, acting through the Director 
     of the Office of Nuclear Energy, Science and Technology, 
     shall conduct an advanced fuel recycling technology research 
     and development program (referred to in this section as the 
     ``program'') to evaluate proliferation-resistant fuel 
     recycling and transmutation technologies that minimize 
     environmental or public health and safety impacts as an 
     alternative to aqueous reprocessing technologies deployed as 
     of the date of enactment of this Act in support of evaluation 
     of alternative national strategies for spent nuclear fuel and 
     the Generation IV advanced reactor concepts.
       (b) Annual Review.--The program shall be subject to annual 
     review by the Nuclear Energy Research Advisory Committee of 
     the Department or other independent entity, as appropriate.
       (c) International Cooperation.--In carrying out the 
     program, the Secretary is encouraged to seek opportunities to 
     enhance the progress of the program through international 
     cooperation.
       (d) Reports.--The Secretary shall submit, as part of the 
     annual budget submission of the Department, a report on the 
     activities of the program.

     SEC. 944. NUCLEAR SCIENCE AND ENGINEERING SUPPORT FOR 
                   INSTITUTIONS OF HIGHER EDUCATION.

       (a) Establishment.--The Secretary shall support a program 
     to invest in human resources and infrastructure in the 
     nuclear sciences and engineering and related fields 
     (including health physics and nuclear and radiochemistry), 
     consistent with departmental missions related to civilian 
     nuclear research and development.
       (b) Duties.--
       (1) In general.--In carrying out the program under this 
     section, the Secretary shall--
       (A) establish fellowship and faculty assistance programs; 
     and
       (B) provide support for fundamental research and encourage 
     collaborative research among industry, National Laboratories, 
     and institutions of higher education through the Nuclear 
     Energy Research Initiative established under section 942(a).
       (2) Entire fuel cycle.--The Secretary is encouraged to 
     support activities addressing the entire fuel cycle through 
     involvement of the Office of Nuclear Energy, Science and 
     Technology and the Office of Civilian Radioactive Waste 
     Management.
       (3) Outreach.--The Secretary shall support communication 
     and outreach related to nuclear science, engineering, and 
     nuclear waste management.
       (c) Maintaining Research and Training Reactors and 
     Associated Infrastructure in Institutions of Higher 
     Education.--Activities under this section may include--
       (1) converting research reactors currently using high-
     enrichment fuels to low-enrichment fuels;
       (2) upgrading operational instrumentation;
       (3) sharing of reactors among institutions of higher 
     education;
       (4) providing technical assistance, in collaboration with 
     the United States nuclear industry, in relicensing and 
     upgrading training reactors as part of a student training 
     program; and
       (5) providing funding for reactor improvements as part of a 
     focused effort that emphasizes research, training, and 
     education.
       (d) Interactions Between National Laboratories and 
     Institutions of Higher Education.--The Secretary shall 
     develop sabbatical fellowship and visiting scientist programs 
     to encourage sharing of personnel between National 
     Laboratories and institutions of higher education.
       (e) Operating and Maintenance Costs.--Funding for a 
     research project provided under this section may be used to 
     offset a portion of the operating and maintenance costs of a 
     research reactor at an institution of higher education used 
     in the research project.

     SEC. 945. SECURITY OF NUCLEAR FACILITIES.

       The Secretary, acting through the Director of the Office of 
     Nuclear Energy, Science and Technology, shall conduct a 
     research and development program on cost-effective 
     technologies for increasing--
       (1) the safety of nuclear facilities from natural 
     phenomena; and
       (2) the security of nuclear facilities from deliberate 
     attacks.

     SEC. 946. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

       (a) Survey.--
       (1) In general.--Not later than August 1, 2006, the 
     Secretary shall submit to Congress the results of a survey of 
     industrial applications of large radioactive sources.
       (2) Administration.--The survey shall--
       (A) consider well-logging sources as 1 class of industrial 
     sources;
       (B) include information on current domestic and 
     international Department, Department of Defense, State 
     Department, and commercial programs to manage and dispose of 
     radioactive sources; and
       (C) analyze available disposal options for currently 
     deployed or future sources and, if deficiencies are noted for 
     either deployed or future sources, recommend legislative 
     options that Congress may consider to remedy identified 
     deficiencies.
       (b) Plan.--
       (1) In general.--In conjunction with the survey conducted 
     under subsection (a), the Secretary shall establish a 
     research and development program to develop alternatives to 
     sources described in subsection (a) that reduce safety, 
     environmental, or proliferation risks to either workers using 
     the sources or the public.
       (2) Accelerators.--Miniaturized particle accelerators for 
     well-logging or other industrial applications and portable 
     accelerators for production of short-lived radioactive 
     materials at an industrial site shall be considered as part 
     of the research and development efforts.
       (3) Report.--Not later than August 1, 2006, the Secretary 
     shall submit to Congress a report describing the details of 
     the program plan.

                       Subtitle E--Fossil Energy

     SEC. 951. FOSSIL ENERGY.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out fossil energy research, 
     development, demonstration, and commercial application 
     activities, including activities authorized under this 
     subtitle--
       (1) $583,000,000 for fiscal year 2006;
       (2) $611,000,000 for fiscal year 2007; and
       (3) $626,000,000 for fiscal year 2008.
       (b) Allocations.--From amounts authorized under subsection 
     (a), the following sums are authorized:
       (1) For activities under section 952(b)(2), $28,000,000 for 
     each of fiscal years 2006 through 2008.
       (2) For activities under section 954, $20,000,000 for each 
     of fiscal years 2006 through 2008.
       (3) For activities under section 955--
       (A) $285,000,000 for fiscal year 2006;
       (B) $298,000,000 for fiscal year 2007; and
       (C) $308,000,000 for fiscal year 2008.
       (4) For the Office of Arctic Energy under section 3197 of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (42 U.S.C. 7144d) $25,000,000 for each of 
     fiscal years 2006 through 2008.
       (c) Extended Authorization.--There are authorized to be 
     appropriated to the Secretary for the Office of Arctic Energy 
     established under section 3197 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (42 
     U.S.C. 7144d) $25,000,000 for each of fiscal years 2009 
     through 2012.
       (d) Limitations.--
       (1) Uses.--None of the funds authorized under this section 
     may be used for Fossil Energy Environmental Restoration or 
     Import/Export Authorization.
       (2) Institutions of higher education.--Of the funds 
     authorized under subsection (b)(2), not less than 20 percent 
     of the funds appropriated for each fiscal year shall be 
     dedicated to research and development carried out at 
     institutions of higher education.

     SEC. 952. OIL AND GAS RESEARCH PROGRAMS.

       (a) Oil and Gas Research.--The Secretary shall conduct a 
     program of research, development, demonstration, and 
     commercial application of oil and gas, including--
       (1) exploration and production;
       (2) gas hydrates;
       (3) reservoir life and extension;
       (4) transportation and distribution infrastructure;
       (5) ultraclean fuels;
       (6) heavy oil and shale; and
       (7) related environmental research.
       (b) Fuel Cells.--
       (1) In general.--The Secretary shall conduct a program of 
     research, development, demonstration, and commercial 
     application on fuel cells for low-cost, high-efficiency, 
     fuel-flexible, modular power systems.
       (2) Demonstrations.--The demonstrations shall include fuel 
     cell proton exchange membrane technology for commercial, 
     residential, and transportation applications, and

[[Page 12455]]

     distributed generation systems, using improved manufacturing 
     production and processes.
       (c) Natural Gas and Oil Deposits Report.--Not later than 2 
     years after the date of enactment of this Act and every 2 
     years thereafter, the Secretary of the Interior, in 
     consultation with other appropriate Federal agencies, shall 
     submit to Congress a report on the latest estimates of 
     natural gas and oil reserves, reserves growth, and 
     undiscovered resources in Federal and State waters off the 
     coast of Louisiana, Texas, Alabama, and Mississippi.
       (d) Integrated Clean Power and Energy Research.--
       (1) Establishment of center.--The Secretary shall establish 
     a national center or consortium of excellence in clean energy 
     and power generation, using the resources of the Clean Power 
     and Energy Research Consortium in existence on the date of 
     enactment of this Act, to address the critical dependence of 
     the United States on energy and the need to reduce emissions.
       (2) Focus areas.--The center or consortium shall conduct a 
     program of research, development, demonstration, and 
     commercial application on integrating the following 6 focus 
     areas:
       (A) Efficiency and reliability of gas turbines for power 
     generation.
       (B) Reduction in emissions from power generation.
       (C) Promotion of energy conservation issues.
       (D) Effectively using alternative fuels and renewable 
     energy.
       (E) Development of advanced materials technology for oil 
     and gas exploration and use in harsh environments.
       (F) Education on energy and power generation issues.

     SEC. 953. METHANE HYDRATE RESEARCH.

       (a) In General.--The Methane Hydrate Research and 
     Development Act of 2000 (30 U.S.C. 1902 note; Public Law 106-
     193) is amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Methane Hydrate Research 
     and Development Act of 2000'.

     ``SEC. 2. FINDINGS.

       ``Congress finds that--
       ``(1) in order to promote energy independence and meet the 
     increasing demand for energy, the United States will require 
     a diversified portfolio of substantially increased quantities 
     of electricity, natural gas, and transportation fuels;
       ``(2) according to the report submitted to Congress by the 
     National Research Council entitled `Charting the Future of 
     Methane Hydrate Research in the United States', the total 
     United States resources of gas hydrates have been estimated 
     to be on the order of 200,000 trillion cubic feet;
       ``(3) according to the report of the National Commission on 
     Energy Policy entitled `Ending the Energy Stalemate--A 
     Bipartisan Strategy to Meet America's Energy Challenge', and 
     dated December 2004, the United States may be endowed with 
     over 1/4 of the methane hydrate deposits in the world;
       ``(4) according to the Energy Information Administration, a 
     shortfall in natural gas supply from conventional and 
     unconventional sources is expected to occur in or about 2020; 
     and
       ``(5) the National Academy of Science states that methane 
     hydrate may have the potential to alleviate the projected 
     shortfall in the natural gas supply.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Contract.--The term `contract' means a procurement 
     contract within the meaning of section 6303 of title 31, 
     United States Code.
       ``(2) Cooperative agreement.--The term `cooperative 
     agreement' means a cooperative agreement within the meaning 
     of section 6305 of title 31, United States Code.
       ``(3) Director.--The term `Director' means the Director of 
     the National Science Foundation.
       ``(4) Grant.--The term `grant' means a grant awarded under 
     a grant agreement (within the meaning of section 6304 of 
     title 31, United States Code).
       ``(5) Industrial enterprise.--The term `industrial 
     enterprise' means a private, nongovernmental enterprise that 
     has an expertise or capability that relates to methane 
     hydrate research and development.
       ``(6) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education (as defined in section 102 of the Higher 
     Education Act of 1965 (20 U.S.C. 1002)).
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Energy, acting through the Assistant Secretary for Fossil 
     Energy.
       ``(8) Secretary of commerce.--The term `Secretary of 
     Commerce' means the Secretary of Commerce, acting through the 
     Administrator of the National Oceanic and Atmospheric 
     Administration.
       ``(9) Secretary of defense.--The term `Secretary of 
     Defense' means the Secretary of Defense, acting through the 
     Secretary of the Navy.
       ``(10) Secretary of the interior.--The term `Secretary of 
     the Interior' means the Secretary of the Interior, acting 
     through the Director of the United States Geological Survey, 
     the Director of the Bureau of Land Management, and the 
     Director of the Minerals Management Service.

     ``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

       ``(a) In General.--
       ``(1) Commencement of program.--Not later than 90 days 
     after the date of enactment of the Energy Research, 
     Development, Demonstration, and Commercial Application Act of 
     2005, the Secretary, in consultation with the Secretary of 
     Commerce, the Secretary of Defense, the Secretary of the 
     Interior, and the Director, shall commence a program of 
     methane hydrate research and development in accordance with 
     this section.
       ``(2) Designations.--The Secretary, the Secretary of 
     Commerce, the Secretary of Defense, the Secretary of the 
     Interior, and the Director shall designate individuals to 
     carry out this section.
       ``(3) Coordination.--The individual designated by the 
     Secretary shall coordinate all activities within the 
     Department of Energy relating to methane hydrate research and 
     development.
       ``(4) Meetings.--The individuals designated under paragraph 
     (2) shall meet not later than 180 days after the date of 
     enactment of the Energy Research, Development, Demonstration, 
     and Commercial Application Act of 2005 and not less 
     frequently than every 180 days thereafter to--
       ``(A) review the progress of the program under paragraph 
     (1); and
       ``(B) coordinate interagency research and partnership 
     efforts in carrying out the program.
       ``(b) Grants, Contracts, Cooperative Agreements, 
     Interagency Funds Transfer Agreements, and Field Work 
     Proposals.--
       ``(1) Assistance and coordination.--In carrying out the 
     program of methane hydrate research and development 
     authorized by this section, the Secretary may award grants 
     to, or enter into contracts or cooperative agreements with, 
     institutions of higher education, oceanographic institutions, 
     and industrial enterprises to--
       ``(A) conduct basic and applied research to identify, 
     explore, assess, and develop methane hydrate as a 
     commercially viable source of energy;
       ``(B) identify methane hydrate resources through remote 
     sensing;
       ``(C) acquire and reprocess seismic data suitable for 
     characterizing methane hydrate accumulations;
       ``(D) assist in developing technologies required for 
     efficient and environmentally sound development of methane 
     hydrate resources;
       ``(E) promote education and training in methane hydrate 
     resource research and resource development through 
     fellowships or other means for graduate education and 
     training;
       ``(F) conduct basic and applied research to assess and 
     mitigate the environmental impact of hydrate degassing 
     (including both natural degassing and degassing associated 
     with commercial development);
       ``(G) develop technologies to reduce the risks of drilling 
     through methane hydrates; and
       ``(H) conduct exploratory drilling, well testing, and 
     production testing operations on permafrost and non-
     permafrost gas hydrates in support of the activities 
     authorized by this paragraph, including drilling of 1 or more 
     full-scale production test wells.
       ``(2) Competitive peer review.--Funds made available under 
     paragraph (1) shall be made available based on a competitive 
     process using external scientific peer review of proposed 
     research.
       ``(c) Methane Hydrates Advisory Panel.--
       ``(1) In general.--The Secretary shall establish an 
     advisory panel (including the hiring of appropriate staff) 
     consisting of representatives of industrial enterprises, 
     institutions of higher education, oceanographic institutions, 
     State agencies, and environmental organizations with 
     knowledge and expertise in the natural gas hydrates field, 
     to--
       ``(A) assist in developing recommendations and broad 
     programmatic priorities for the methane hydrate research and 
     development program carried out under subsection (a)(1);
       ``(B) provide scientific oversight for the methane hydrates 
     program, including assessing progress toward program goals, 
     evaluating program balance, and providing recommendations to 
     enhance the quality of the program over time; and
       ``(C) not later than 2 years after the date of enactment of 
     the Energy Research, Development, Demonstration, and 
     Commercial Application Act of 2005, and at such later dates 
     as the panel considers advisable, submit to Congress--
       ``(i) an assessment of the methane hydrate research 
     program; and
       ``(ii) an assessment of the 5-year research plan of the 
     Department of Energy.
       ``(2) Conflicts of interest.--In appointing each member of 
     the advisory panel established under paragraph (1), the 
     Secretary shall ensure, to the maximum extent practicable, 
     that the appointment of the member does not pose a conflict 
     of interest with respect to the duties of the member under 
     this Act.
       ``(3) Meetings.--The advisory panel shall--
       ``(A) hold the initial meeting of the advisory panel not 
     later than 180 days after the

[[Page 12456]]

     date of establishment of the advisory panel; and
       ``(B) meet biennially thereafter.
       ``(4) Coordination.--The advisory panel shall coordinate 
     activities of the advisory panel with program managers of the 
     Department of Energy at appropriate national laboratories.
       ``(d) Construction Costs.--None of the funds made available 
     to carry out this section may be used for the construction of 
     a new building or the acquisition, expansion, remodeling, or 
     alteration of an existing building (including site grading 
     and improvement and architect fees).
       ``(e) Responsibilities of the Secretary.--In carrying out 
     subsection (b)(1), the Secretary shall--
       ``(1) facilitate and develop partnerships among government, 
     industrial enterprises, and institutions of higher education 
     to research, identify, assess, and explore methane hydrate 
     resources;
       ``(2) undertake programs to develop basic information 
     necessary for promoting long-term interest in methane hydrate 
     resources as an energy source;
       ``(3) ensure that the data and information developed 
     through the program are accessible and widely disseminated as 
     needed and appropriate;
       ``(4) promote cooperation among agencies that are 
     developing technologies that may hold promise for methane 
     hydrate resource development;
       ``(5) report annually to Congress on the results of actions 
     taken to carry out this Act; and
       ``(6) ensure, to the maximum extent practicable, greater 
     participation by the Department of Energy in international 
     cooperative efforts.

     ``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

       ``(a) Agreement for Study.--The Secretary shall offer to 
     enter into an agreement with the National Research Council 
     under which the National Research Council shall--
       ``(1) conduct a study of the progress made under the 
     methane hydrate research and development program implemented 
     under this Act; and
       ``(2) make recommendations for future methane hydrate 
     research and development needs.
       ``(b) Report.--Not later than September 30, 2009, the 
     Secretary shall submit to Congress a report containing the 
     findings and recommendations of the National Research Council 
     under this section.

     ``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.

       ``The Secretary shall provide to the Committee on Science 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate copies of any report or 
     study that the Department of Energy prepares at the direction 
     of any committee of Congress relating to the methane hydrate 
     research and development program implemented under this Act.

     ``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Secretary 
     to carry out this Act, to remain available until expended--
       ``(1) $15,000,000 for fiscal year 2006;
       ``(2) $20,000,000 for fiscal year 2007;
       ``(3) $30,000,000 for fiscal year 2008;
       ``(4) $50,000,000 for fiscal year 2009; and
       ``(5) $50,000,000 for fiscal year 2010.''.
       (b) Reclassification.--The Law Revision Counsel shall 
     reclassify the Methane Hydrate Research and Development Act 
     of 2000 (30 U.S.C. 1902 note; Public Law 106-193) to a new 
     chapter at the end of title 30, United States Code.

     SEC. 954. RESEARCH AND DEVELOPMENT FOR COAL MINING 
                   TECHNOLOGIES.

       (a) Establishment.--The Secretary shall carry out a program 
     for research and development on coal mining technologies.
       (b) Cooperation.--In carrying out the program, the 
     Secretary shall cooperate with appropriate Federal agencies, 
     coal producers, trade associations, equipment manufacturers, 
     institutions of higher education with mining engineering 
     departments, and other relevant entities.
       (c) Program.--The research and development activities 
     carried out under this section shall--
       (1) be guided by the mining research and development 
     priorities identified by the Mining Industry of the Future 
     Program and in the recommendations from relevant reports of 
     the National Academy of Sciences on mining technologies;
       (2) include activities exploring minimization of 
     contaminants in mined coal that contribute to environmental 
     concerns including development and demonstration of 
     electromagnetic wave imaging ahead of mining operations;
       (3) develop and demonstrate coal bed electromagnetic wave 
     imaging, spectroscopic reservoir analysis technology, and 
     techniques for horizontal drilling in order to--
       (A) identify areas of high coal gas content;
       (B) increase methane recovery efficiency;
       (C) prevent spoilage of domestic coal reserves; and
       (D) minimize water disposal associated with methane 
     extraction; and
       (4) expand mining research capabilities at institutions of 
     higher education.

     SEC. 955. COAL AND RELATED TECHNOLOGIES PROGRAM.

       (a) In General.--In addition to the programs authorized 
     under title II, the Secretary shall conduct a program of 
     technology research, development, and demonstration and 
     commercial application for coal and power systems, including 
     programs to facilitate production and generation of coal-
     based power through--
       (1) innovations for existing plants;
       (2) integrated gasification combined cycle;
       (3) advanced combustion systems;
       (4) turbines for synthesis gas derived from coal;
       (5) carbon capture and sequestration research and 
     development;
       (6) coal-derived transportation fuels and chemicals;
       (7) liquid fuels derived from low rank coal water;
       (8) removal of elemental mercury;
       (9) solid fuels and feedstocks; and
       (10) advanced coal-related research.
       (b) Cost and Performance Goals.--
       (1) In general.--In carrying out programs authorized by 
     this section, the Secretary shall identify cost and 
     performance goals for coal-based technologies that would 
     permit the continued cost-competitive use of coal for 
     electricity generation, as chemical feedstocks, and as 
     transportation fuel in 2007, 2010, 2012, and 2015.
       (2) Administration.--In establishing the cost and 
     performance goals, the Secretary shall--
       (A) consider activities and studies undertaken as of the 
     date of enactment of this Act by industry in cooperation with 
     the Department in support of the identification of the goals;
       (B) consult with interested entities, including--
       (i) coal producers;
       (ii) industries using coal;
       (iii) organizations that promote coal and advanced coal 
     technologies;
       (iv) environmental organizations; and
       (v) organizations representing workers;
       (C) not later than 120 days after the date of enactment of 
     this Act, publish in the Federal Register proposed draft cost 
     and performance goals for public comments; and
       (D) not later than 180 days after the date of enactment of 
     this Act and every 4 years thereafter, submit to Congress a 
     report describing the final cost and performance goals for 
     the technologies that includes--
       (i) a list of technical milestones; and
       (ii) an explanation of how programs authorized in this 
     section will not duplicate the activities authorized under 
     the Clean Coal Power Initiative authorized under title II.
       (c) Powder River Basin and Fort Union Lignite Coal Mercury 
     Removal.--
       (1) In general.--In addition to the programs authorized by 
     subsection (a), the Secretary may establish a program to test 
     and develop technologies to control and remove mercury 
     emissions from subbituminous coal mined in the Powder River 
     Basin, and Fort Union lignite coals, that are used for the 
     generation of electricity.
       (2) Efficacy of mercury removal technology.--In carrying 
     out the program under paragraph (1), the Secretary shall 
     examine the efficacy of mercury removal technologies on coals 
     described in that paragraph that are blended with other types 
     of coal.

     SEC. 956. CARBON DIOXIDE CAPTURE RESEARCH AND DEVELOPMENT.

       (a) Program.--The Secretary shall establish a program of 
     research and development aimed at developing carbon dioxide 
     capture technologies for pulverized coal combustion units.
       (b) Focus.--The program under subsection (a) shall focus 
     on--
       (1) developing add-on carbon dioxide capture technologies, 
     such as adsorption and absorption techniques and chemical 
     processes, to remove carbon dioxide from the flue gas, 
     producing concentrated streams of carbon dioxide potentially 
     amenable to sequestration;
       (2) combustion technologies that would directly produce 
     concentrated streams of carbon dioxide potentially amenable 
     to sequestration; and
       (3) minimizing the efficiency losses associated with carbon 
     capture and sequestration.
       (b) Carbon Sequestration.--In conjunction with the program 
     under subsection (a), the Secretary shall continue pursuit of 
     a carbon sequestration program involving public-private 
     partnerships.

     SEC. 957. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

       The Secretary, in coordination with industry leaders in 
     extended research drilling technology, shall establish a 
     Complex Well Technology Testing Facility at the Rocky 
     Mountain Oilfield Testing Center to increase the range of 
     extended drilling technologies.

                          Subtitle F--Science

     SEC. 961. SCIENCE.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out research, development, 
     demonstration, and commercial application activities of the 
     Office of Science, including activities authorized under this 
     subtitle (including the amounts authorized under the 
     amendment made by section 967(b) and including basic energy 
     sciences, advanced scientific and computing research, 
     biological and environmental research, fusion energy 
     sciences, high energy physics, nuclear physics, research 
     analysis, and infrastructure support)--

[[Page 12457]]

       (1) $4,153,000,000 for fiscal year 2006;
       (2) $4,586,000,000 for fiscal year 2007; and
       (3) $5,000,000,000 for fiscal year 2008.
       (b) Allocations.--From amounts authorized under subsection 
     (a), the following sums are authorized:
       (1) For activities under the Fusion Energy Sciences program 
     (including activities under section 962)--
       (A) $349,000,000 for fiscal year 2006;
       (B) $362,000,000 for fiscal year 2007; and
       (C) $377,000,000 for fiscal year 2008.
       (2) For activities under the catalysis research program 
     established under section 964--
       (A) $35,000,000 for fiscal year 2006;
       (B) $36,500,000 for fiscal year 2007; and
       (C) $38,200,000 for fiscal year 2008.
       (3) For activities under the Genomes to Life Program 
     established under section 968--
       (A) $170,000,000 for fiscal year 2006;
       (B) $325,000,000 for fiscal year 2007; and
       (C) $415,000,000 for fiscal year 2008.
       (4) For construction and ancillary equipment for user 
     facilities under section 968(d) for the Genomes to Life 
     Program, of the amounts authorized under paragraph (3)--
       (A) $70,000,000 for fiscal year 2006;
       (B) $175,000,000 for fiscal year 2007; and
       (C) $215,000,000 for fiscal year 2008.
       (5) For activities under the Energy-Water Supply 
     Technologies Program established under section 970, 
     $30,000,000 for each of fiscal years 2006 through 2008.
       (c) Fusion Energy Sciences Program.--In addition to the 
     funds authorized under subsection (b)(1), there are 
     authorized to be appropriated for construction costs 
     associated with the Fusion Energy Sciences Program under 
     section 962--
       (1) $55,000,000 for fiscal year 2006;
       (2) $95,000,000 for fiscal year 2007; and
       (3) $115,000,000 for fiscal year 2008.

     SEC. 962. FUSION ENERGY SCIENCES PROGRAM.

       (a) Declaration of Policy.--It shall be the policy of the 
     United States to conduct research, development, 
     demonstration, and commercial applications to provide for the 
     scientific, engineering, and commercial infrastructure 
     necessary to ensure that the United States is competitive 
     with other countries in providing fusion energy for its own 
     needs and the needs of other countries, including by 
     demonstrating electric power or hydrogen production for the 
     United States energy grid using fusion energy at the earliest 
     date.
       (b) Planning.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a plan (with proposed cost estimates, budgets, and lists of 
     potential international partners) for the implementation of 
     the policy described in subsection (a) in a manner that 
     ensures that--
       (A) existing fusion research facilities are more fully 
     used;
       (B) fusion science, technology, theory, advanced 
     computation, modeling, and simulation are strengthened;
       (C) new magnetic and inertial fusion research and 
     development facilities are selected based on scientific 
     innovation and cost effectiveness, and the potential of the 
     facilities to advance the goal of practical fusion energy at 
     the earliest date practicable;
       (D) facilities that are selected are funded at a cost-
     effective rate;
       (E) communication of scientific results and methods between 
     the fusion energy science community and the broader 
     scientific and technology communities is improved;
       (F) inertial confinement fusion facilities are used to the 
     extent practicable for the purpose of inertial fusion energy 
     research and development;
       (G) attractive alternative inertial and magnetic fusion 
     energy approaches are more fully explored; and
       (H) to the extent practicable, the recommendations of the 
     Fusion Energy Sciences Advisory Committee in the report on 
     workforce planning, dated March 2004, are carried out, 
     including periodic reassessment of program needs.
       (2) Costs and schedules.--The plan shall also address the 
     status of and, to the extent practicable, costs and schedules 
     for--
       (A) the design and implementation of international or 
     national facilities for the testing of fusion materials; and
       (B) the design and implementation of international or 
     national facilities for the testing and development of key 
     fusion technologies.
       (c) United States Participation in ITER.--
       (1) Definitions.--In this subsection:
       (A) Construction.--
       (i) In general.--The term ``construction'' means--

       (I) the physical construction of the ITER facility; and
       (II) the physical construction, purchase, or manufacture of 
     equipment or components that are specifically designed for 
     the ITER facility.

       (ii) Exclusions.--The term ``construction'' does not 
     include the design of the facility, equipment, or components.
       (B) ITER.--The term ``ITER'' means the international 
     burning plasma fusion research project in which the President 
     announced United States participation on January 30, 2003, or 
     any similar international project.
       (2) Participation.--The United States may participate in 
     the ITER only in accordance with this subsection.
       (3) Agreement.--
       (A) In general.--The Secretary may negotiate an agreement 
     for United States participation in the ITER.
       (B) Contents.--Any agreement for United States 
     participation in the ITER shall, at a minimum--
       (i) clearly define the United States financial contribution 
     to construction and operating costs, as well as any other 
     costs associated with a project;
       (ii) ensure that the share of high-technology components of 
     the ITER manufactured in the United States is at least 
     proportionate to the United States financial contribution to 
     the ITER;
       (iii) ensure that the United States will not be financially 
     responsible for cost overruns in components manufactured in 
     other ITER participating countries;
       (iv) guarantee the United States full access to all data 
     generated by the ITER;
       (v) enable United States researchers to propose and carry 
     out an equitable share of the experiments at the ITER;
       (vi) provide the United States with a role in all 
     collective decisionmaking related to the ITER; and
       (vii) describe the process for discontinuing or 
     decommissioning the ITER and any United States role in that 
     process.
       (4) Plan.--
       (A) Development.--The Secretary, in consultation with the 
     Fusion Energy Sciences Advisory Committee, shall develop a 
     plan for the participation of United States scientists in the 
     ITER that shall include--
       (i) the United States research agenda for the ITER;
       (ii) methods to evaluate whether the ITER is promoting 
     progress toward making fusion a reliable and affordable 
     source of power; and
       (iii) a description of how work at the ITER will relate to 
     other elements of the United States fusion program.
       (B) Review.--The Secretary shall request a review of the 
     plan by the National Academy of Sciences.
       (5) Limitation.--No Federal funds shall be expended for the 
     construction of the ITER until the Secretary has submitted to 
     Congress--
       (A) the agreement negotiated in accordance with paragraph 
     (3) and 120 days have elapsed since that submission;
       (B) a report describing the management structure of the 
     ITER and providing a fixed dollar estimate of the cost of 
     United States participation in the construction of the ITER, 
     and 120 days have elapsed since that submission;
       (C) a report describing how United States participation in 
     the ITER will be funded without reducing funding for other 
     programs in the Office of Science (including other fusion 
     programs), and 60 days have elapsed since that submission; 
     and
       (D) the plan required by paragraph (4) (but not the 
     National Academy of Sciences review of that plan), and 60 
     days have elapsed since that submission.
       (6) Alternative to iter.--
       (A) In general.--If at any time during the negotiations on 
     the ITER, the Secretary determines that construction and 
     operation of the ITER is unlikely or infeasible, the 
     Secretary shall submit to Congress, along with the budget 
     request of the President submitted to Congress for the 
     following fiscal year, a plan for implementing a domestic 
     burning plasma experiment such as the Fusion Ignition 
     Research Experiment, including costs and schedules for the 
     plan.
       (B) Administration.--The Secretary shall--
       (i) refine the plan in full consultation with the Fusion 
     Energy Sciences Advisory Committee; and
       (ii) transmit the plan to the National Academy of Sciences 
     for review.

     SEC. 963. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND 
                   INFRASTRUCTURE.

       (a) Facility and Infrastructure Policy.--
       (1) In general.--The Secretary shall develop and implement 
     a strategy for facilities and infrastructure supported 
     primarily from the Office of Science, the Office of Energy 
     Efficiency and Renewable Energy, the Office of Fossil Energy, 
     or the Office of Nuclear Energy, Science and Technology 
     Programs at all National Laboratories and single-purpose 
     research facilities.
       (2) Strategy.--The strategy shall provide cost-effective 
     means for--
       (A) maintaining existing facilities and infrastructure;
       (B) closing unneeded facilities;
       (C) making facility modifications; and
       (D) building new facilities.
       (b) Report.--
       (1) In general.--The Secretary shall prepare and submit, 
     along with the budget request of the President submitted to 
     Congress for fiscal year 2007, a report describing the 
     strategy developed under subsection (a).
       (2) Contents.--For each National Laboratory and single-
     purpose research facility that is primarily used for science 
     and energy research, the report shall contain--
       (A) the current priority list of proposed facilities and 
     infrastructure projects, including cost and schedule 
     requirements;

[[Page 12458]]

       (B) a current 10-year plan that demonstrates the 
     reconfiguration of its facilities and infrastructure to meet 
     its missions and to address its long-term operational costs 
     and return on investment;
       (C) the total current budget for all facilities and 
     infrastructure funding; and
       (D) the current status of each facility and infrastructure 
     project compared to the original baseline cost, schedule, and 
     scope.

     SEC. 964. CATALYSIS RESEARCH PROGRAM.

       (a) Establishment.--The Secretary, acting through the 
     Office of Science, shall support a program of research and 
     development in catalysis science consistent with the 
     statutory authorities of the Department related to research 
     and development.
       (b) Components.--The program shall include efforts to--
       (1) enable catalyst design using combinations of 
     experimental and mechanistic methodologies coupled with 
     computational modeling of catalytic reactions at the 
     molecular level;
       (2) develop techniques for high throughput synthesis, 
     assay, and characterization at nanometer and subnanometer 
     scales in situ under actual operating conditions;
       (3) synthesize catalysts with specific site architectures;
       (4) conduct research on the use of precious metals for 
     catalysis; and
       (5) translate molecular understanding to the design of 
     catalytic compounds.
       (c) Duties of the Office of Science.--In carrying out the 
     program, the Director of the Office of Science shall--
       (1) support both individual investigators and 
     multidisciplinary teams of investigators to pioneer new 
     approaches in catalytic design;
       (2) develop, plan, construct, acquire, share, or operate 
     special equipment or facilities for the use of investigators 
     in collaboration with national user facilities, such as 
     nanoscience and engineering centers;
       (3) support technology transfer activities to benefit 
     industry and other users of catalysis science and 
     engineering; and
       (4) coordinate research and development activities with 
     industry and other Federal agencies.
       (d) Triennial Assessment.--Not later than 3 years after the 
     date of enactment of this Act and every 3 years thereafter, 
     the National Academy of Sciences shall--
       (1) review the catalysis program to measure--
       (A) gains made in the fundamental science of catalysis; and
       (B) progress towards developing new fuels for energy 
     production and material fabrication processes; and
       (2) submit to Congress a report describing the results of 
     the review.

     SEC. 965. HYDROGEN.

       (a) In General.--The Secretary shall conduct a program of 
     fundamental research and development in support of programs 
     authorized under title VIII.
       (b) Methods.--The program shall include support for methods 
     of generating hydrogen without the use of natural gas.

     SEC. 966. SOLID STATE LIGHTING.

       The Secretary shall conduct a program of fundamental 
     research on advance solid state lighting in support of the 
     Next Generation Lighting Initiative carried out under section 
     912.

     SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

       (a) Program.--
       (1) In general.--The Secretary shall conduct an advanced 
     scientific computing research and development program that 
     includes activities related to applied mathematics and 
     activities authorized by the Department of Energy High-End 
     Computing Revitalization Act of 2004 (15 U.S.C. 5541 et 
     seq.).
       (2) Goal.--The Secretary shall carry out the program with 
     the goal of supporting departmental missions, and providing 
     the high-performance computational, networking, advanced 
     visualization technologies, and workforce resources, that are 
     required for world leadership in science.
       (b) High-Performance Computing.--Section 203 of the High-
     Performance Computing Act of 1991 (15 U.S.C. 5523) is amended 
     to read as follows:

     ``SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

       ``(a) General Responsibilities.--As part of the Program 
     described in title I, the Secretary of Energy shall--
       ``(1) conduct and support basic and applied research in 
     high-performance computing and networking to support 
     fundamental research in science and engineering disciplines 
     related to energy applications; and
       ``(2) provide computing and networking infrastructure 
     support, including--
       ``(A) the provision of high-performance computing systems 
     that are among the most advanced in the world in terms of 
     performance in solving scientific and engineering problems; 
     and
       ``(B) support for advanced software and applications 
     development for science and engineering disciplines related 
     to energy applications.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Energy such 
     sums as are necessary to carry out this section.''.

     SEC. 968. GENOMES TO LIFE PROGRAM.

       (a) Establishment.--The Secretary shall carry out a program 
     of research, development, demonstration, and commercial 
     application, to be known as the ``Genomes to Life Program'', 
     in microbial and plant systems biology, protein science, and 
     computational biology consistent with the statutory 
     authorities of the Department.
       (b) Planning.--
       (1) In general.--The Secretary shall prepare a program plan 
     that describes how knowledge and capabilities would be 
     developed by the program and applied to missions of the 
     Department relating to energy security, environmental 
     cleanup, and national security.
       (2) Consultation.--The Secretary shall prepare the program 
     plan in consultation with the heads of other Federal agencies 
     that carry out relevant technology programs.
       (3) Long-term goals.--In preparing the program plan, the 
     Secretary shall focus on applying science and technology to 
     achieve the long-term goals of the program, including--
       (A) contributing to the independence of the United States 
     from foreign energy sources, including production of 
     hydrogen;
       (B) converting carbon dioxide to organic carbon;
       (C) advancing environmental cleanup;
       (D) providing the science and technology for new 
     biotechnology industries; and
       (E) improving national security and combating bioterrorism.
       (4) Short-term goals.--In preparing the program plan, the 
     Secretary shall--
       (A) establish specific short-term goals; and
       (B) update the goals with the annual budget submission of 
     the Secretary.
       (c) Administration.--In carrying out the program, the 
     Secretary shall--
       (1) support individual investigators and multidisciplinary 
     teams of investigators;
       (2) subject to subsection (d), develop, plan, construct, 
     acquire, or operate special equipment or facilities for the 
     use of investigators conducting research, development, 
     demonstration, or commercial application in systems biology 
     and proteomics;
       (3) support technology transfer activities to benefit 
     industry and other users of systems biology and proteomics; 
     and
       (4) coordinate activities by the Department with industry 
     and other Federal agencies.
       (d) Genomes to Life User Facilities and Ancillary 
     Equipment.--
       (1) In general.--Subject to the availability of funds to 
     carry out this subsection, the amounts made available under 
     section 961(b)(4) shall be available for--
       (A) projects to develop, plan, construct, acquire, or 
     operate special equipment, or instrumentation; or
       (B) facilities at National Laboratories for investigators 
     conducting research, development, demonstration, and 
     commercial application in systems biology and proteomics and 
     associated biological disciplines.
       (2) Projects.--Projects under paragraph (1)(A) may 
     include--
       (A) the identification and characterization of multiprotein 
     complexes;
       (B) characterization of gene regulatory networks;
       (C) characterization of the functional repertoire of 
     complex microbial communities in their natural environments 
     at the molecular level; and
       (D) development of computational methods and capabilities 
     to advance understanding of complex biological systems and 
     predict their behavior.
       (3) Facilities.--Facilities under paragraph (1)(B) may 
     include facilities, equipment, or instrumentation for--
       (A) the production and characterization of proteins;
       (B) whole proteome analysis;
       (C) characterization and imaging of molecular machines; and
       (D) analysis and modeling of cellular systems.
       (4) Facilities location and mission.--The number, location, 
     and mission of facilities under paragraph (1)(B) shall be 
     determined in a plan provided by the Secretary to Congress 
     before the construction of any such facility.
       (5) Collaboration.--
       (A) In general.--In carrying out this subsection, the 
     Secretary shall encourage collaborations among institutions 
     of higher education, National Laboratories, and industry at 
     facilities.
       (B) Technology transfer.--All facilities under this 
     subsection shall promote technology transfer to other 
     institutions.

     SEC. 969. FISSION AND FUSION ENERGY MATERIALS RESEARCH 
                   PROGRAM.

       (a) In General.--Along with the budget request of the 
     President submitted to Congress for fiscal year 2007, the 
     Secretary shall establish a research and development program 
     on material science issues presented by advanced fission 
     reactors and the fusion energy program of the Department.
       (b) Administration.--In carrying out the program, the 
     Secretary shall develop--
       (1) a catalog of material properties required for 
     applications described in subsection (a);
       (2) theoretical models for materials possessing the 
     required properties;
       (3) benchmark models against existing data; and

[[Page 12459]]

       (4) a roadmap to guide further research and development in 
     the area covered by the program.

     SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PROGRAM.

       (a) Definitions.--In this section:
       (1) Foundation.--The term ``Foundation'' means the American 
     Water Works Association Research Foundation.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Program.--The term ``Program'' means the Energy-Water 
     Supply Technologies Program established by subsection (b).
       (b) Establishment.--There is established, within the Office 
     of Biological and Environmental Research of the Office of 
     Science, a program, to be known as the ``Energy-Water Supply 
     Technologies Program'', to study--
       (1) energy-related issues associated with water resources 
     and municipal waterworks; and
       (2) supply issues related to energy production.
       (c) Program Areas.--In carrying out the Program, the 
     Secretary shall conduct research and development, including 
     research and development relating to--
       (1) the arsenic removal program under subsection (d);
       (2) the desalination research program under subsection (e);
       (3) the water and energy sustainability program under 
     subsection (f); and
       (4) other energy-intensive water supply and treatment 
     technologies and other technologies selected by the 
     Secretary.
       (d) Arsenic Removal Program.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall enter into a 
     contract with the Foundation to use the facilities, 
     institutions, and relationships described in the matter under 
     the heading ``biological and environmental research'' of 
     title III of Senate Report 107-220 to accompany the 
     Consolidated Appropriations Resolution, 2003 (Public Law 108-
     7) to carry out a research program to develop and demonstrate 
     innovative arsenic removal technologies.
       (2) Research.--In carrying out the arsenic removal program, 
     the Foundation shall, to the maximum extent practicable, 
     conduct research on means of--
       (A) reducing energy costs incurred in using arsenic removal 
     technologies;
       (B) minimizing materials, operating, and maintenance costs 
     incurred in using arsenic removal technologies; and
       (C) minimizing any quantities of waste (especially 
     hazardous waste) that result from use of arsenic removal 
     technologies.
       (3) Demonstration projects.--The Foundation shall carry out 
     peer-reviewed research and demonstration projects to develop 
     and demonstrate water purification technologies.
       (4) Administration.--Under the arsenic removal program--
       (A) demonstration projects shall be implemented with 
     municipal water system partners to demonstrate the 
     applicability of innovative arsenic removal technologies in 
     areas with different water chemistries representative of 
     areas across the United States with arsenic levels near or 
     exceeding the guidelines of the Environmental Protection 
     Agency; and
       (B) not less than 40 percent of the funds of the Department 
     used for demonstration projects under the arsenic removal 
     program shall be expended on projects focused on the needs of 
     and in partnership with rural communities or Indian tribes.
       (5) Evaluations; technology transfer.--The Foundation shall 
     develop evaluations of cost effectiveness of arsenic removal 
     technologies used in the program and an education, training, 
     and technology transfer component for the program.
       (6) Coordination.--The Secretary shall consult with the 
     Administrator of the Environmental Protection Agency to 
     ensure that activities under the arsenic removal program are 
     coordinated with appropriate programs of the Environmental 
     Protection Agency and other Federal agencies, State programs, 
     and academia.
       (7) Reports.--Not later than 1 year after the date of 
     commencement of the arsenic removal program and annually 
     thereafter, the Secretary shall submit to Congress a report 
     on the results of the arsenic removal program.
       (e) Desalination Program.--
       (1) In general.--The Secretary, in cooperation with the 
     Commissioner of Reclamation, shall carry out a desalination 
     research program in accordance with the desalination 
     technology progress plan developed under the matter under the 
     heading ``water and related resources'' under the heading 
     ``Bureau of Reclamation'' of title II of the Energy and Water 
     Development Appropriations Act, 2002 (115 Stat. 498) and 
     described in Senate Report 107-39 to accompany S. 1171 (107th 
     Congress).
       (2) Administration.--The desalination program shall--
       (A) draw on the national laboratory partnership established 
     with the Bureau of Reclamation to develop the national 
     Desalination and Water Purification Technology Roadmap for 
     next-generation desalination technology released in January 
     2003;
       (B) focus on research relating to, and development and 
     demonstration of, technologies that are appropriate for use 
     in desalinating brackish groundwater, wastewater, and other 
     saline water supplies and disposal of residual brine or salt; 
     and
       (C) consider the use of renewable energy sources.
       (3) Construction projects.--Under the desalination program, 
     funds made available for the program may be used for 
     construction projects, including completion of the National 
     Desalination Research Center for brackish groundwater and 
     ongoing facility operational costs.
       (4) Steering committee.--
       (A) Establishment.--The Secretary and the Commissioner of 
     Reclamation shall jointly establish a steering committee for 
     the desalination program.
       (B) Chair.--The steering committee shall be jointly chaired 
     by--
       (i) 1 representative from the Program; and
       (ii) 1 representative from the Bureau of Reclamation.
       (f) Water and Energy Sustainability Program.--
       (1) In general.--The Secretary shall carry out a research 
     program to develop technologies to assist in ensuring that 
     sufficient quantities of water are available to meet present 
     and future requirements.
       (2) Assessments.--Under the program and in collaboration 
     with other programs within the Department (including programs 
     within the Offices of Fossil Energy and Energy Efficiency and 
     Renewable Energy), the Secretary of the Interior, the Corps 
     of Engineers, the Environmental Protection Agency, the 
     Department of Commerce, the Department of Defense, State 
     agencies, nongovernmental agencies, and academia, the 
     Secretary shall assess the current state of knowledge and 
     program activities concerning--
       (A) future water resources needed to support energy 
     production within the United States, including the water 
     needs for hydropower and thermo-electric power generation;
       (B) future energy resources needed to support development 
     of water purification and treatment, including desalination 
     and long-distance water conveyance;
       (C) reuse and treatment of water produced as a byproduct of 
     oil and gas extraction;
       (D) use of impaired and nontraditional water supplies for 
     energy production and other uses; and
       (E) technologies to reduce water use in energy production.
       (3) Tools.--In addition to the assessments conducted under 
     paragraph (2), the Secretary shall--
       (A) develop a research plan that defines the scientific and 
     technology development needs and activities required to 
     support--
       (i) long-term water needs and planning for energy 
     sustainability;
       (ii) use of impaired water for energy production and other 
     uses; and
       (iii) reduction of water use in energy production;
       (B) carry out the research plan required under subparagraph 
     (A), including development of numerical models, decision 
     analysis tools, economic analysis tools, databases, planning 
     methodologies, and strategies;
       (C) implement at least 3 planning demonstration projects 
     using the models, tools, and planning approaches developed 
     under subparagraph (B) and assess the viability of those 
     tools on the scale of river basins with at least 1 
     demonstration involving an international border; and
       (D) transfer those tools to other Federal agencies, State 
     agencies, nonprofit organizations, industry, and academia for 
     use in their energy and water sustainability efforts.
       (4) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the water and energy sustainability program 
     that--
       (A) describes the research elements described under 
     paragraph (2); and
       (B) makes recommendations for a management structure that 
     optimizes use of Federal resources and programs.
       (g) Cost Sharing.--
       (1) Research projects.--A research project under this 
     section shall not require cost-sharing.
       (2) Demonstration projects.--Each demonstration project 
     carried out under the Program shall be carried out in 
     accordance with the cost-sharing requirements of section 
     1002.

     SEC. 971. SPALLATION NEUTRON SOURCE.

       (a) Definitions.--In this section:
       (1) SING.--The term ``SING'' means the Spallation Neutron 
     Source Instruments Next Generation major item of equipment.
       (2) SNS power upgrade.--The term ``SNS power upgrade'' 
     means the Spallation Neutron Source power upgrade described 
     in the 20-year facilities plan of the Office of Science of 
     the Department.
       (3) SNS second target station.--The term ``SNS second 
     target station'' the Spallation Neutron Source second target 
     station described in the 20-year facilities plan of the 
     Office of Science of the Department.
       (4) Spallation neutron source facility.--The terms 
     ``Spallation Neutron Source Facility'' and ``Facility'' mean 
     the completed Spallation Neutron Source scientific user 
     facility located at Oak Ridge National Laboratory, Oak Ridge, 
     Tennessee.

[[Page 12460]]

       (5) Spallation neutron source project.--The terms 
     ``Spallation Neutron Source Project'' and ``Project'' means 
     Department Project 99-E-334, Oak Ridge National Laboratory, 
     Oak Ridge, Tennessee.
       (b) Spallation Neutron Source Project.--
       (1) In general.--The Secretary shall submit to Congress, as 
     part of the annual budget request of the President submitted 
     to Congress, a report on progress on the Spallation Neutron 
     Source Project.
       (2) Contents.--The report shall include for the Project--
       (A) a description of the achievement of milestones;
       (B) a comparison of actual costs to estimated costs; and
       (C) any changes in estimated Project costs or schedule.
       (c) Spallation Neutron Source Facility Plan.--
       (1) In general.--The Secretary shall develop an operational 
     plan for the Spallation Neutron Source Facility that ensures 
     that the Facility is employed to the full capability of the 
     Facility in support of the study of advanced materials, 
     nanoscience, and other missions of the Office of Science of 
     the Department.
       (2) Plan.--The operational plan shall--
       (A) include a plan for the operation of an effective 
     scientific user program that--
       (i) is based on peer review of proposals submitted for use 
     of the Facility;
       (ii) includes scientific and technical support to ensure 
     that external users, including researchers based at 
     institutions of higher education, are able to make full use 
     of a variety of high quality scientific instruments; and
       (iii) phases in systems upgrades to ensure that the 
     Facility remains at the forefront of international scientific 
     endeavors in the field of the Facility throughout the 
     operating life of the Facility;
       (B) include an ongoing program to develop new instruments 
     that builds on the high performance neutron source and that 
     allows neutron scattering techniques to be applied to a 
     growing range of scientific problems and disciplines; and
       (C) address the status of and, to the maximum extent 
     practicable, costs and schedules for--
       (i) full user mode operations of the Facility;
       (ii) instrumentation built at the Facility during the 
     operating phase through full use of the experimental hall, 
     including the SING;
       (iii) the SNS power upgrade; and
       (iv) the SNS second target station.
       (d) Authorization of Appropriations.--
       (1) Spallation neutron source project.--There is authorized 
     to be appropriated to carry out the Spallation Neutron Source 
     Project for the lifetime of the Project $1,411,700,000 for 
     total project costs, of which--
       (A) $1,192,700,000 shall be used for the costs of 
     construction; and
       (B) $219,000,000 shall be used for other Project costs.
       (2) Spallation neutron source facility.--
       (A) In general.--Except as provided in subparagraph (B), 
     there is authorized to be appropriated for the Spallation 
     Neutron Source Facility for--
       (i) the SING, $75,000,000 for fiscal year 2006; and
       (ii) the SNS power upgrade, $160,000,000 for each of fiscal 
     years 2007 and 2008.
       (B) Insufficient stockpiles of heavy water.--If stockpiles 
     of heavy water of the Department are insufficient to meet the 
     needs of the Facility, there is authorized to be appropriated 
     for the Facility $172,000,000 for fiscal year 2007.

                 Subtitle G--International Cooperation

     SEC. 981. WESTERN HEMISPHERE ENERGY COOPERATION.

       (a) Program.--The Secretary shall carry out a program to 
     promote cooperation on energy issues with countries of the 
     Western Hemisphere.
       (b) Activities.--Under the program, the Secretary shall 
     fund activities to work with countries of the Western 
     Hemisphere to--
       (1) increase the production of energy supplies;
       (2) improve energy efficiency; and
       (3) assist in the development and transfer of energy supply 
     and efficiency technologies that would have a beneficial 
     impact on world energy markets.
       (c) Participation by Institutions of Higher Education.--To 
     the extent practicable, the Secretary shall carry out the 
     program under this section with the participation of 
     institutions of higher education so as to take advantage of 
     the acceptance of institutions of higher education by 
     countries of the Western Hemisphere as sources of unbiased 
     technical and policy expertise when assisting the Secretary 
     in--
       (1) evaluating new technologies;
       (2) resolving technical issues;
       (3) working with those countries in the development of new 
     policies; and
       (4) training policymakers, particularly in the case of 
     institutions of higher education that involve the 
     participation of minority students, such as--
       (A) Hispanic-serving institutions; and
       (B) part B institutions.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $10,000,000 for fiscal year 2006;
       (2) $13,000,000 for fiscal year 2007; and
       (3) $16,000,000 for fiscal year 2008.

     SEC. 982. COOPERATION BETWEEN UNITED STATES AND ISRAEL.

       (a) Findings.--Congress finds that--
       (1) on February 1, 1996, the United States and Israel 
     signed the agreement entitled ``Agreement between the 
     Department of Energy of the United States of America and the 
     Ministry of Energy and Infrastructure of Israel Concerning 
     Energy Cooperation'', (referred to in this section as the 
     ``Agreement'') to establish a framework for collaboration 
     between the United States and Israel in energy research and 
     development activities;
       (2) the Agreement entered into force in February 2000;
       (3) in February 2005, the Agreement was automatically 
     renewed for 1 additional 5-year period pursuant to Article X 
     of the Agreement; and
       (4) under the Agreement, the United States and Israel may 
     cooperate in energy research and development in a variety of 
     alternative and advanced energy sectors.
       (b) Report to Congress.--Not later than 90 days after the 
     date of enactment of this Act, the Secretary shall submit to 
     the Committee on Energy and Natural Resources of the Senate 
     and the Committee on Energy and Commerce of the House of 
     Representatives a report that describes--
       (1) the ways in which the United States and Israel have 
     cooperated on energy research and development activities 
     under the Agreement;
       (2) projects initiated pursuant to the Agreement; and
       (3) plans for future cooperation and joint projects under 
     the Agreement.
       (c) Sense of Congress.--It is the sense of Congress that 
     energy cooperation between the Governments of the United 
     States and Israel is mutually beneficial in the development 
     of energy technology.

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

     SEC. 1001. AVAILABILITY OF FUNDS.

       Funds authorized to be appropriated to the Department under 
     this Act or an amendment made by this Act shall remain 
     available until expended.

     SEC. 1002. COST SHARING.

       (a) Applicability.--Notwithstanding any other provision of 
     law, in carrying out a research, development, demonstration, 
     or commercial application activity that is initiated after 
     the date of enactment of this section, the Secretary shall 
     require cost-sharing in accordance with this section.
       (b) Research and Development.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3) and subsection (f), the Secretary shall require not less 
     than 20 percent of the cost of a research or development 
     activity described in subsection (a) to be provided by a non-
     Federal source.
       (2) Exclusion.--Paragraph (1) shall not apply to a research 
     or development activity described in subsection (a) that is 
     of a basic or fundamental nature, as determined by the 
     appropriate officer of the Department.
       (3) Reduction.--The Secretary may reduce or eliminate the 
     requirement of paragraph (1) for a research and development 
     activity of an applied nature if the Secretary determines 
     that the reduction is necessary and appropriate.
       (c) Demonstration and Commercial Application.--
       (1) In general.--Except as provided in paragraph (2) and 
     subsection (f), the Secretary shall require that not less 
     than 50 percent of the cost of a demonstration or commercial 
     application activity described in subsection (a) to be 
     provided by a non-Federal source.
       (2) Reduction of non-federal share.--The Secretary may 
     reduce the non-Federal share required under paragraph (1) if 
     the Secretary determines the reduction to be necessary and 
     appropriate, taking into consideration any technological risk 
     relating to the activity.
       (d) Calculation of Amount.--In calculating the amount of a 
     non-Federal contribution under this section, the Secretary--
       (1) may include allowable costs in accordance with the 
     applicable cost principles, including--
       (A) cash;
       (B) personnel costs;
       (C) the value of a service, other resource, or third party 
     in-kind contribution determined in accordance with the 
     applicable circular of the Office of Management and Budget;
       (D) indirect costs or facilities and administrative costs; 
     or
       (E) any funds received under the power program of the 
     Tennessee Valley Authority (except to the extent that such 
     funds are made available under an annual appropriation Acts); 
     and
       (2) shall not include--
       (A) revenues or royalties from the prospective operation of 
     an activity beyond the time considered in the award;
       (B) proceeds from the prospective sale of an asset of an 
     activity; or
       (C) other appropriated Federal funds.
       (e) Repayment of Federal Share.--The Secretary shall not 
     require repayment of the Federal share of a cost-shared 
     activity under this section as a condition of making an 
     award.

[[Page 12461]]

       (f) Exclusions.--This section shall not apply to--
       (1) a cooperative research and development agreement under 
     the Stevenson-Wydler Technology Innovation Act of 1990 (15 
     U.S.C. 3701 et seq.);
       (2) a fee charged for the use of a Department facility; or
       (3) an award under--
       (A) the small business innovation research program under 
     section 9 of the Small Business Act (15 U.S.C. 638); or
       (B) the small business technology transfer program under 
     that section.

     SEC. 1003. MERIT REVIEW OF PROPOSALS.

       Awards of funds authorized under this Act or an amendment 
     made by this Act shall be made only after an impartial review 
     of the scientific and technical merit of the proposals for 
     the awards has been carried out by or for the Department.

     SEC. 1004. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL 
                   PROGRAMS.

       (a) National Energy Research and Development Advisory 
     Boards.--
       (1) Establishment.--The Secretary shall establish 1 or more 
     advisory boards to review research, development, 
     demonstration, and commercial application programs of the 
     Department in energy efficiency, renewable energy, nuclear 
     energy, and fossil energy.
       (2) Alternatives.--The Secretary may--
       (A) designate an existing advisory board within the 
     Department to fulfill the responsibilities of an advisory 
     board under this section; and
       (B) enter into appropriate arrangements with the National 
     Academy of Sciences to establish such an advisory board.
       (b) Use of Existing Committees.--The Secretary shall 
     continue to use the scientific program advisory committees 
     chartered under the Federal Advisory Committee Act (5 U.S.C. 
     App.) by the Office of Science to oversee research and 
     development programs under that Office.
       (c) Membership.--Each advisory board under this section 
     shall consist of persons with appropriate expertise 
     representing a diverse range of interests.
       (d) Meetings and Goals.--
       (1) Meetings.--Each advisory board under this section shall 
     meet at least semiannually to review and advise on the 
     progress made by the respective 1 or more research, 
     development, demonstration, and commercial application 
     programs.
       (2) Goals.--The advisory board shall review the measurable 
     cost and performance-based goals for the programs as 
     established under section 902, and the progress on meeting 
     the goals.
       (e) Periodic Reviews and Assessments.--
       (1) In general.--The Secretary shall enter into appropriate 
     arrangements with the National Academy of Sciences to conduct 
     periodic reviews and assessments of--
       (A) the programs authorized by this Act and amendments made 
     by this Act;
       (B) the measurable cost and performance-based goals for the 
     programs as established under section 902, if any; and
       (C) the progress on meeting the goals.
       (2) Timing.--The reviews and assessments shall be conducted 
     every 5 years or more often as the Secretary considers 
     necessary.
       (3) Reports.--The Secretary shall submit to Congress 
     reports describing the results of all the reviews and 
     assessments.

     SEC. 1005. IMPROVED TECHNOLOGY TRANSFER OF ENERGY 
                   TECHNOLOGIES.

       (a) Technology Transfer Coordinator.--The Secretary shall 
     appoint a Technology Transfer Coordinator to be the principal 
     advisor to the Secretary on all matters relating to 
     technology transfer and commercialization.
       (b) Qualifications.--The Coordinator shall be an individual 
     who, by reason of professional background and experience, is 
     specially qualified to advise the Secretary on matters 
     pertaining to technology transfer at the Department.
       (c) Duties of the Coordinator.--The Coordinator shall 
     oversee--
       (1) the activities of the Technology Transfer Working Group 
     established under subsection (d);
       (2) the expenditure of funds allocated for technology 
     transfer within the Department;
       (3) the activities of each technology partnership ombudsman 
     appointed under section 11 of the Technology Transfer 
     Commercialization Act of 2000 (42 U.S.C. 7261c); and
       (4) efforts to engage private sector entities, including 
     venture capital companies.
       (d) Technology Transfer Working Group.--The Secretary shall 
     establish a Technology Transfer Working Group, which shall 
     consist of representatives of the National Laboratories and 
     single-purpose research facilities, to--
       (1) coordinate technology transfer activities occurring at 
     National Laboratories and single-purpose research facilities;
       (2) exchange information about technology transfer 
     practices, including alternative approaches to resolution of 
     disputes involving intellectual property rights and other 
     technology transfer matters; and
       (3) develop and disseminate to the public and prospective 
     technology partners information about opportunities and 
     procedures for technology transfer with the Department, 
     including opportunities and procedures related to alternative 
     approaches to resolution of disputes involving intellectual 
     property rights and other technology transfer matters.
       (e) Technology Commercialization Fund.--The Secretary shall 
     establish an Energy Technology Commercialization Fund, using 
     0.5 percent of the amount made available to the Department 
     for each fiscal year, to be used to provide matching funds 
     with private partners to promote promising technologies for 
     commercial purposes.
       (f) Technology Transfer Responsibility.--Nothing in this 
     section affects the technology transfer responsibilities of 
     Federal employees under the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
       (g) Planning and Reporting.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a technology transfer execution plan.
       (2) Updates.--Each year after the submission of the plan 
     under paragraph (1), the Secretary shall submit to Congress 
     an updated execution plan and reports that describe progress 
     toward meeting goals set forth in the execution plan and the 
     funds expended under subsection (e).

     SEC. 1006. TECHNOLOGY INFRASTRUCTURE PROGRAM.

       (a) Definitions.--In this section:
       (1) Program.--The term ``Program'' means the Technology 
     Infrastructure Program established under subsection (b).
       (2) Technology cluster.--The term ``technology cluster'' 
     means a concentration of technology-related business 
     concerns, institutions of higher education, or nonprofit 
     institutions, that reinforce each other's performance in the 
     areas of technology development through formal or informal 
     relationships.
       (3) Technology-related business concern.--The term 
     ``technology-related business concern'' means a for-profit 
     corporation, company, association, firm, partnership, or 
     small business concern that--
       (A) conducts scientific or engineering research;
       (B) develops new technologies;
       (C) manufactures products based on new technologies; or
       (D) performs technological services.
       (b) Establishment.--The Secretary shall establish a 
     Technology Infrastructure Program in accordance with this 
     section.
       (c) Purpose.--The purpose of the Program shall be to 
     improve the ability of National Laboratories and single-
     purpose research facilities to support departmental missions 
     by--
       (1) stimulating the development of technology clusters that 
     can support departmental missions at the National 
     Laboratories or single-purpose research facilities;
       (2) improving the ability of National Laboratories and 
     single-purpose research facilities to leverage and benefit 
     from commercial research, technology, products, processes, 
     and services; and
       (3) encouraging the exchange of scientific and 
     technological expertise between--
       (A) National Laboratories or single-purpose research 
     facilities; and
       (B) entities that can support departmental missions at the 
     National Laboratories or single-purpose research facilities, 
     such as--
       (i) institutions of higher education;
       (ii) technology-related business concerns;
       (iii) nonprofit institutions; and
       (iv) agencies of State, tribal, or local governments.
       (d) Projects.--The Secretary shall authorize the director 
     of each National Laboratory or single-purpose research 
     facility to implement the Program at the National Laboratory 
     or facility through 1 or more projects that meet the 
     requirements of subsections (e) and (f).
       (e) Program Requirements.--
       (1) In general.--Each project funded under this section 
     shall meet the requirements of this subsection.
       (2) Entities.--Each project shall include at least 1 of 
     each of the following entities:
       (A) A business.
       (B) An institution of higher education.
       (C) A nonprofit institution.
       (D) An agency of a State, local, or tribal government.
       (3) Cost-sharing.--
       (A) In general.--The costs of carrying out projects under 
     this section shall be shared in accordance with section 1002.
       (B) Sources.--The calculation of costs paid by the non-
     Federal sources for a project shall include cash, personnel, 
     services, equipment, and other resources expended on the 
     project after the commencement of the project.
       (C) Research and development expenses.--Independent 
     research and development expenses of Government contractors 
     that qualify for reimbursement under section 31.205-18(e) of 
     title 48, Code of Federal Regulations, issued pursuant to 
     section 25(c)(1) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 421(c)(1)), may be credited towards costs paid 
     by non-Federal sources to a project, if the expenses meet the 
     other requirements of this section.
       (4) Competitive selection.--A project under this section 
     shall be competitively selected using procedures determined 
     by the Secretary.

[[Page 12462]]

       (5) Accounting.--Any participant that receives funds under 
     this section may use generally accepted accounting principles 
     for maintaining accounts, books, and records relating to the 
     project.
       (6) Duration.--No Federal funds shall be made available 
     under this section for a construction project or for any 
     project with a duration of more than 5 years.
       (f) Selection Criteria.--
       (1) Departmental missions.--The Secretary shall allocate 
     funds under this section only if the Director of the National 
     Laboratory or single-purpose research facility managing the 
     project determines that the project is likely to improve the 
     ability of the National Laboratory or single-purpose research 
     facility to achieve technical success in meeting departmental 
     missions.
       (2) Other criteria.--In selecting a project to receive 
     Federal funds, the Secretary shall consider--
       (A) the potential of the project to promote the development 
     of a commercially sustainable technology cluster following 
     the period of investment by the Department, which will derive 
     most of the demand for its products or services from the 
     private sector, and which will support departmental missions 
     at the participating National Laboratory or single-purpose 
     research facility;
       (B) the potential of the project to promote the use of 
     commercial research, technology, products, processes, and 
     services by the participating National Laboratory or single-
     purpose research facility to achieve its mission or the 
     commercial development of technological innovations made at 
     the participating National Laboratory or single-purpose 
     research facility;
       (C) the extent to which the project involves a wide variety 
     and number of institutions of higher education, nonprofit 
     institutions, and technology-related business concerns that 
     can support the missions of the participating National 
     Laboratory or single-purpose research facility and that will 
     make substantive contributions to achieving the goals of the 
     project;
       (D) the extent to which the project focuses on promoting 
     the development of technology-related business concerns that 
     are small businesses or involves such small businesses 
     substantively in the project; and
       (E) such other criteria as the Secretary determines to be 
     appropriate.
       (g) Allocation.--In allocating funds for projects approved 
     under this section, the Secretary shall provide--
       (1) the Federal share of the project costs; and
       (2) additional funds to the National Laboratory or single-
     purpose research facility managing the project to permit the 
     National Laboratory or single-purpose research facility to 
     carry out activities relating to the project, and to 
     coordinate the activities with the project.
       (h) Report to Congress.--Not later than July 1, 2008, the 
     Secretary shall submit to Congress a report on whether the 
     Program should be continued and, if so, how the program 
     should be managed.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for activities under this 
     section $10,000,000 for each of fiscal years 2006 through 
     2008.

     SEC. 1007. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

       (a) Small Business Advocate.--The Secretary shall require 
     the Director of each National Laboratory, and may require the 
     Director of a single-purpose research facility, to designate 
     a small business advocate to--
       (1) increase the participation of small business concerns, 
     including socially and economically disadvantaged small 
     business concerns (as defined in section 8(a)(4) of the Small 
     Business Act (15 U.S.C. 637(a)(4))), in procurement, 
     collaborative research, technology licensing, and technology 
     transfer activities conducted by the National Laboratory or 
     single-purpose research facility;
       (2) report to the Director of the National Laboratory or 
     single-purpose research facility on the actual participation 
     of small business concerns in procurement and collaborative 
     research along with recommendations, if appropriate, on how 
     to improve participation;
       (3) make available to small business concerns training, 
     mentoring, and information on how to participate in 
     procurement and collaborative research activities;
       (4) increase the awareness inside the National Laboratory 
     or single-purpose research facility of the capabilities and 
     opportunities presented by small business concerns; and
       (5) establish guidelines for the program under subsection 
     (b) and report on the effectiveness of the program to the 
     Director of the National Laboratory or single-purpose 
     research facility.
       (b) Establishment of Small Business Assistance Program.--
     The Secretary shall require the Director of each National 
     Laboratory, and may require the Director of a single-purpose 
     research facility, to establish a program to provide small 
     business concerns with--
       (1) assistance directed at making the small business 
     concerns more effective and efficient subcontractors or 
     suppliers to the National Laboratory or single-purpose 
     research facilities; or
       (2) general technical assistance, the cost of which shall 
     not exceed $10,000 per instance of assistance, to improve the 
     products or services of the small business concern.
       (c) Use of Funds.--None of the funds expended under 
     subsection (b) may be used for direct grants to small 
     business concerns.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary for activities under this 
     section $5,000,000 for each of fiscal years 2006 through 
     2008.

     SEC. 1008. OUTREACH.

       The Secretary shall ensure that each program authorized by 
     this Act or an amendment made by this Act includes an 
     outreach component to provide information, as appropriate, to 
     manufacturers, consumers, engineers, architects, builders, 
     energy service companies, institutions of higher education, 
     facility planners and managers, State and local governments, 
     and other entities.

     SEC. 1009. RELATIONSHIP TO OTHER LAWS.

       Except as otherwise provided in this Act or an amendment 
     made by this Act, the Secretary shall carry out the research, 
     development, demonstration, and commercial application 
     programs, projects, and activities authorized by this Act or 
     an amendment made by this Act in accordance with the 
     applicable provisions of--
       (1) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.);
       (2) the Federal Nonnuclear Energy Research and Development 
     Act of 1974 (42 U.S.C. 5901 et seq.);
       (3) the Energy Policy Act of 1992 (42 U.S.C. 13201 et 
     seq.);
       (4) the Stevenson-Wydler Technology Innovation Act of 1980 
     (15 U.S.C. 3701 et seq.);
       (5) chapter 18 of title 35, United States Code (commonly 
     known as the ``Bayh-Dole Act''); and
       (6) any other Act under which the Secretary is authorized 
     to carry out the programs, projects, and activities.

     SEC. 1010. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN 
                   SCIENCE AND TECHNOLOGY PROGRAMS.

       (a) Effective Top-Level Coordination of Research and 
     Development Programs.--Section 202 of the Department of 
     Energy Organization Act (42 U.S.C. 7132) is amended by 
     striking subsection (b) and inserting the following:
       ``(b)(1) There shall be in the Department an Under 
     Secretary for Energy and Science, who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       ``(2) The Under Secretary shall be compensated at the rate 
     provided for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       ``(3) The Under Secretary for Energy and Science shall be 
     appointed from among persons who--
       ``(A) have extensive background in scientific or 
     engineering fields; and
       ``(B) are well qualified to manage the civilian research 
     and development programs of the Department.
       ``(4) The Under Secretary for Energy and Science shall--
       ``(A) serve as the Science and Technology Advisor to the 
     Secretary;
       ``(B) monitor the research and development programs of the 
     Department in order to advise the Secretary with respect to 
     any undesirable duplication or gaps in the programs;
       ``(C) advise the Secretary with respect to the well-being 
     and management of the multipurpose laboratories under the 
     jurisdiction of the Department;
       ``(D) advise the Secretary with respect to education and 
     training activities required for effective short- and long-
     term basic and applied research activities of the Department;
       ``(E) advise the Secretary with respect to grants and other 
     forms of financial assistance required for effective short- 
     and long-term basic and applied research activities of the 
     Department;
       ``(F) bear primary responsibility for energy conservation; 
     and
       ``(G) exercise authority and responsibility over Assistant 
     Secretaries carrying out energy research and development and 
     energy technology functions under sections 203 and 209, as 
     well as other elements of the Department assigned by the 
     Secretary.''.
       (b) Reconfiguration of Position of Director of the Office 
     of Science.--
       (1) In general.--Section 209 of the Department of Energy 
     Organization Act (41 U.S.C. 7139) is amended to read as 
     follows:


                          ``office of science

       ``Sec. 209. (a) There shall be within the Department an 
     Office of Science, to be headed by an Assistant Secretary for 
     Science, who shall be appointed by the President, by and with 
     the advice and consent of the Senate, and who shall be 
     compensated at the rate provided for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.
       ``(b) The Assistant Secretary for Science shall be in 
     addition to the Assistant Secretaries provided for under 
     section 203.
       ``(c) It shall be the duty and responsibility of the 
     Assistant Secretary for Science to carry out the fundamental 
     science and engineering research functions of the Department, 
     including the responsibility for policy and management of the 
     research, as well as other functions vested in the Secretary 
     that

[[Page 12463]]

     the Secretary may assign to the Assistant Secretary.''.
       (2) Director of the office of science.--
       (A) In general.--Notwithstanding section 3345(b)(1) of 
     title 5, United States Code, the President may designate the 
     Director of the Office of Science who served immediately 
     before the date of enactment of this Act to act in the office 
     of the Assistant Secretary of Energy for Science until the 
     office is filled as provided in section 209 of the Department 
     of Energy Organization Act (as amended by paragraph (1)).
       (B) Compensation.--While so acting, the person shall 
     receive compensation at the rate provided by section 209(a) 
     of that Act (as amended by paragraph (1)) for the office of 
     Assistant Secretary for Science.
       (c) Additional Assistant Secretary Position to Enable 
     Improved Management of Nuclear Energy Issues.--
       (1) In general.--Section 203(a) of the Department of Energy 
     Organization Act (42 U.S.C. 7133(a)) is amended in the first 
     sentence by striking ``There shall be in the Department six 
     Assistant Secretaries'' and inserting ``Except as provided in 
     section 209, there shall be in the Department 7 Assistant 
     Secretaries''.
       (2) Assistant secretary level.--It is the sense of Congress 
     that the leadership for departmental missions in nuclear 
     energy should be at the Assistant Secretary level.
       (d) Technical and Conforming Amendments.--
       (1) Section 202 of the Department of Energy Organization 
     Act (42 U.S.C. 7132) (as amended by subsection (b)(1)) is 
     amended by adding at the end the following:
       ``(d)(1) There shall be in the Department an Under 
     Secretary, who shall be appointed by the President, by and 
     with the advice and consent of the Senate, and who shall 
     perform such functions and duties as the Secretary shall 
     prescribe, consistent with this section.
       ``(2) The Under Secretary shall be compensated at the rate 
     provided for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       ``(e)(1) There shall be in the Department a General 
     Counsel, who shall be appointed by the President, by and with 
     the advice and consent of the Senate, and who shall perform 
     such functions and duties as the Secretary shall prescribe.
       ``(2) The General Counsel shall be compensated at the rate 
     provided for level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.''.
       (2) Section 5314 of title 5, United States Code, is amended 
     by striking ``Under Secretaries of Energy (2)'' and inserting 
     ``Under Secretaries of Energy (3)''.
       (3) Section 5315 of title 5, United States Code, is 
     amended--
       (A) by striking ``Assistant Secretaries of Energy (6)'' and 
     inserting ``Assistant Secretaries of Energy (8)''; and
       (B) by striking ``Director, Office of Science, Department 
     of Energy.''.

     SEC. 1011. OTHER TRANSACTIONS AUTHORITY.

       Section 646 of the Department of Energy Organization Act 
     (42 U.S.C. 7256) is amended by adding at the end the 
     following:
       ``(g)(1) In addition to other authorities granted to the 
     Secretary under any other provision of law, the Secretary may 
     enter into other transactions on such terms as the Secretary 
     may consider appropriate in furtherance of research, 
     development, or demonstration functions vested in the 
     Secretary.
       ``(2) The other transactions shall not be subject to 
     section 9 of the Federal Nonnuclear Energy Research and 
     Development Act of 1974 (42 U.S.C. 5908).
       ``(3)(A) The Secretary shall ensure that--
       ``(i) to the maximum extent the Secretary determines 
     practicable, no transaction entered into under paragraph (1) 
     provides for research, development, or demonstration that 
     duplicates research, development, or demonstration being 
     conducted under existing projects carried out by the 
     Department;
       ``(ii) to the extent the Secretary determines practicable, 
     the funds provided by the Federal Government under a 
     transaction authorized by paragraph (1) do not exceed the 
     total amount provided by other parties to the transaction; 
     and
       ``(iii) to the extent the Secretary determines practicable, 
     competitive, merit-based selection procedures shall be used 
     when entering into transactions under paragraph (1).
       ``(B) A transaction authorized by paragraph (1) may be used 
     for a research, development, or demonstration project only if 
     the Secretary determines the use of a standard contract, 
     grant, or cooperative agreement for the project is not 
     feasible or appropriate.
       ``(4)(A) The Secretary shall protect from disclosure 
     (including disclosure under section 552 of title 5, United 
     States Code) for up to 5 years after the date the information 
     is received by the Secretary--
       ``(i) a proposal, proposal abstract, and supporting 
     documents submitted to the Department in a competitive or 
     noncompetitive process having the potential for resulting in 
     an award to the party submitting the information entering 
     into a transaction under paragraph (1); and
       ``(ii) a business plan and technical information relating 
     to a transaction authorized by paragraph (1) submitted to the 
     Department as confidential business information.
       ``(B) The Secretary may protect from disclosure, for up to 
     5 years after the information was developed, any information 
     developed pursuant to a transaction under paragraph (1) which 
     developed information is of a character that it would be 
     protected from disclosure under section 552(b)(4) of title 5, 
     United States Code, if obtained from a person other than a 
     Federal agency.
       ``(5)(A) Not later than 90 days after the date of enactment 
     of this subsection, the Secretary shall prescribe guidelines 
     for using other transactions authorized by paragraph (1).
       ``(B) The guidelines shall be published in the Federal 
     Register for public comment under rulemaking procedures of 
     the Department.
       ``(6) The authority of the Secretary under this subsection 
     may be delegated only to an officer of the Department who is 
     appointed by the President by and with the advice and consent 
     of the Senate and may not be delegated to any other 
     person.''.

     SEC. 1012. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF 
                   SCIENCE AND TECHNOLOGY.

       (a) Authority.--The Secretary may carry out a program to 
     award cash prizes in recognition of breakthrough achievements 
     in research, development, demonstration, and commercial 
     application that have the potential for application to the 
     performance of the mission of the Department.
       (b) Competition Requirements.--The program under subsection 
     (a) may include prizes for the achievement of goals 
     articulated by the Secretary in a specific area through a 
     widely advertised solicitation of submission of results for 
     research, development, demonstration, or commercial 
     application projects.
       (c) Relationship to Other Authority.--The program under 
     subsection (a) may be carried out in conjunction with or in 
     addition to the exercise of any other authority of the 
     Secretary to acquire, support, or stimulate research, 
     development, demonstration, or commercial application 
     projects.

     SEC. 1013. TECHNICAL CORRECTIONS.

       (a) Coal Research and Development.--
       (1) In general.--Public Law 86-599 (30 U.S.C. 661 et seq.) 
     is amended--
       (A) by striking the first section (30 U.S.C. 661) and 
     inserting the following:
       ``Section 1. (a) This Act may be cited as the `Coal 
     Research and Development Act of 1960'.
       ``(b) In this Act:
       ``(1) The term `research' means scientific, technical, and 
     economic research and the practical application of that 
     research.
       ``(2) The term `Secretary' means the Secretary of 
     Energy.'';
       (B) in section 2 (30 U.S.C. 662), by striking ``shall 
     establish within'' and all that follows through ``such 
     Office'';
       (C) by striking sections 3, 4, and 7 (30 U.S.C. 663, 664, 
     667); and
       (D) by redesignating sections 5, 6, and 8 (30 U.S.C. 665, 
     666, 668) as sections 3, 4, and 5, respectively.
       (2) Patents.--Section 210(a)(8) of title 35, United States 
     Code, is amended by striking ``Coal Research Development Act 
     of 1960'' and inserting ``Coal Research and Development Act 
     of 1960''.
       (b) Nonnuclear Energy Research and Development.--
       (1) Short title; definitions.--Section 1 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5902) is amended to read as follows:


                     ``SHORT TITLE AND DEFINITIONS

       ``Section 1. (a) This Act may be cited as the `Federal 
     Nonnuclear Energy Research and Development Act of 1974''.
       ``(b) In this Act:
       ``(1) The term `Department' means the Department of Energy.
       ``(2) The term `Secretary' means the Secretary of 
     Energy.''.
       (2) Statement of policy.--Section 3(b) of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5902(b)) is amended--
       (A) in paragraph (1), by striking ``Energy Research and 
     Development Administration'' and inserting ``Department'';
       (B) in paragraph (2), by striking ``Administrator of the 
     Energy Research and Development Administration (hereinafter 
     in this Act referred to as the `Administrator')'' and 
     inserting ``Secretary''; and
       (C) in paragraph (3)--
       (i) by striking ``Administrator'' and inserting 
     ``Secretary''; and
       (ii) by inserting ``Demonstration'' after ``Cooling''.
       (3) Duties and authorities.--Section 4 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5903) is amended--
       (A) by striking the section heading and inserting the 
     following:


              ``duties and authorities of the secretary'';

     and
       (B) in the matter preceding subsection (a), by striking 
     ``Administrator'' and inserting ``Secretary''.
       (4) Comprehensive planning and programming.--Section 6 of 
     the Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5905) is amended--
       (A) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary''; and

[[Page 12464]]

       (B) in subsection (b)(3)--
       (i) in subparagraph (I), by inserting ``Demonstration'' 
     after ``Cooling''; and
       (ii) in subparagraph (L), by inserting ``Energy'' after 
     ``Solar''.
       (5) Forms of federal assistance.--Section 7 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5906) is amended--
       (A) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary''; and
       (B) in subsection (a)(4), by striking ``of the section''.
       (6) Demonstrations.--Section 8 of the Federal Nonnuclear 
     Energy Research and Development Act of 1974 (42 U.S.C. 5907) 
     is amended--
       (A) in subsections (a) through (c), by striking 
     ``Administrator'' each place it appears and inserting 
     ``Secretary'';
       (B) in subsection (d)--
       (i) in the first sentence of paragraph (1), by inserting 
     ``of the Energy Research and Development Administration'' 
     after ``Administrator''; and
       (ii) in paragraph (3), by striking ``Administrator'' and 
     inserting ``Secretary''; and
       (C) in subsection (f)--
       (i) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary''; and
       (ii) in the proviso of the first sentence, by striking 
     ``Administrator's'' and inserting ``Secretary's''.
       (7) Patent policy.--Section 9 of the Federal Nonnuclear 
     Energy Research and Development Act of 1974 (42 U.S.C. 5908) 
     is amended--
       (A) by striking ``Administration'' each place it appears 
     and inserting ``Department'';
       (B) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary''; and
       (C) in subsection (c)(3), by striking ``Administration's'' 
     and inserting ``Department's''.
       (8) Acquisition of essential materials.--Section 12 of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5911) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) A rule or order under subsection (a) shall be 
     considered to be a major rule subject to chapter 8 of title 
     5, United States Code.''.
       (9) Water resource evaluation.--Section 13 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5912) is amended by striking ``Administrator'' each 
     place it appears and inserting ``Secretary''.
       (10) Authorization of appropriations.--Section 16 of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5915) is amended--
       (A) by striking the section heading and inserting the 
     following:


                  ``authorization of appropriations'';

       (B) by striking ``(a) There may be appropriated to the 
     Administrator'' and inserting ``There may be appropriated to 
     the Secretary''; and
       (C) by striking subsections (b) and (c).
       (11) Central source of nonnuclear energy information.--
     Section 17 of the Federal Nonnuclear Energy Research and 
     Development Act of 1974 (42 U.S.C. 5916) is amended--
       (A) by striking ``Administrator'' each place it appears and 
     inserting ``Secretary'';
       (B) in the first sentence, by striking ``Administrator's'';
       (C) in the second sentence, by striking ``he'' and 
     inserting ``the Secretary'';
       (D) in the third sentence--
       (i) in paragraph (2) of the first proviso, by striking 
     ``section 1905 or title 18'' and inserting ``section 1905 of 
     title 18''; and
       (ii) in subparagraph (B) of the second proviso--

       (I) by striking ``the Federal Energy Administration,'';
       (II) by striking ``the Federal Power Commission,'' and 
     inserting ``the Federal Energy Regulatory Commission''; and
       (III) by striking ``General Accounting Office'' and 
     inserting ``Government Accountability Office''; and

       (E) in the last sentence, by inserting ``or ranking 
     minority member'' after ``chairman''.
       (12) Energy information, loan guarantees, and financial 
     support.--Sections 18 through 20 of the Federal Nonnuclear 
     Energy Research and Development Act of 1974 (42 U.S.C. 5917 
     through 5920) are repealed.
       (c) Stevenson-Wydler Technology Innovation Act of 1980.--
     Section 20 of the Stevenson-Wydler Technology Innovation Act 
     of 1980 (15 U.S.C. 3712) is amended by striking ``and the 
     National Science Foundation'' and inserting ``, the Secretary 
     of Energy, and the Director of the National Science 
     Foundation''.

                    TITLE XI--PERSONNEL AND TRAINING

     SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

       (a) Definitions.--In this section:
       (1) Energy technology industry.--The term ``energy 
     technology industry'' includes--
       (A) a renewable energy industry;
       (B) a company that develops or commercializes a device to 
     increase energy efficiency;
       (C) the oil and gas industry;
       (D) the nuclear power industry;
       (E) the coal industry;
       (F) the electric utility industry; and
       (G) any other industrial sector, as the Secretary 
     determines to be appropriate.
       (2) Skilled technical personnel.--The term ``skilled 
     technical personnel'' means--
       (A) journey- and apprentice-level workers who are enrolled 
     in, or have completed, a federally-recognized or State-
     recognized apprenticeship program; and
       (B) other skilled workers in energy technology industries, 
     as determined by the Secretary.
       (b) Workforce Trends.--
       (1) Monitoring.--The Secretary, in consultation with, and 
     using data collected by, the Secretary of Labor, shall 
     monitor trends in the workforce of--
       (A) skilled technical personnel that support energy 
     technology industries; and
       (B) electric power and transmission engineers.
       (2) Report.--As soon as practicable after the date on which 
     the Secretary identifies or predicts a significant national 
     shortage of skilled technical personnel in 1 or more energy 
     technology industries, the Secretary shall submit to Congress 
     a report describing the shortage.
       (c) Traineeship Grants for Skilled Technical Personnel.--
     The Secretary, in consultation with the Secretary of Labor, 
     may establish programs in the appropriate offices of the 
     Department under which the Secretary provides grants to 
     enhance training (including distance learning) for any 
     workforce category for which a shortage is identified or 
     predicted under subsection (b)(2).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2006 through 2008.

     SEC. 1102. ENERGY RESEARCH FELLOWSHIPS.

       (a) Postdoctoral Fellowship Program.--The Secretary shall 
     establish a program under which the Secretary provides 
     fellowships to encourage outstanding young scientists and 
     engineers to pursue postdoctoral research appointments in 
     energy research and development at institutions of higher 
     education of their choice.
       (b) Senior Research Fellowships.--
       (1) In general.--The Secretary shall establish a program 
     under which the Secretary provides fellowships to allow 
     outstanding senior researchers and their research groups in 
     energy research and development to explore research and 
     development topics of their choosing for a period of not less 
     than 3 years to be determined by the Secretary.
       (2) Consideration.--In providing a fellowship under the 
     program described in paragraph (1), the Secretary shall 
     consider--
       (A) the past scientific or technical accomplishment of a 
     senior researcher; and
       (B) the potential for continued accomplishment by the 
     researcher during the period of the fellowship.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $40,000,000 for 
     each of fiscal years 2006 through 2008.

     SEC. 1103. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

       (a) Authorized Education Activities.--Section 3165 of the 
     Department of Energy Science Education Enhancement Act (42 
     U.S.C. 7381b) is amended by adding at the end:
       ``(14) Support competitive events for students, under 
     supervision of teachers, designed to encourage student 
     interest and knowledge in science and mathematics.
       ``(15) Support competitively-awarded science resource 
     centers at National Laboratories to promote professional 
     development of mathematics teachers and science teachers who 
     teach in grades from kindergarten through grade 12.
       ``(16) Support summer internships at National Laboratories 
     for mathematics teachers and science teachers who teach in 
     grades from kindergarten through grade 12.''.
       (b) Authorization of Appropriations.--Section 3168 of the 
     Department of Energy Science Education Enhancement Act (42 
     U.S.C. 7381e) is amended by inserting before the period at 
     the end the following: ``and $40,000,000 for each of fiscal 
     years 2006 through 2008.''.

     SEC. 1104. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY 
                   PERSONNEL.

       (a) In General.--The Secretary of Labor, in consultation 
     with the Secretary and in conjunction with the electric 
     industry and recognized employee representatives, shall 
     develop model personnel training guidelines to support the 
     reliability and safety of the electric system.
       (b) Requirements.--The training guidelines under subsection 
     (a) shall, at a minimum--
       (1) include training requirements for workers engaged in 
     the construction, operation, inspection, or maintenance of 
     electric generation, transmission, or distribution systems, 
     including requirements relating to--
       (A) competency;
       (B) certification; and
       (C) assessment, including--
       (i) initial and continuous evaluation of workers;
       (ii) recertification procedures; and
       (iii) methods for examining or testing the qualification of 
     an individual who performs a covered task; and

[[Page 12465]]

       (2) consolidate training guidelines in existence on the 
     date on which the guidelines under subsection (a) are 
     developed relating to the construction, operation, 
     maintenance, and inspection of electric generation, 
     transmission, and distribution facilities, such as guidelines 
     established by the National Electric Safety Code and other 
     industry consensus standards.

     SEC. 1105. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING 
                   TECHNOLOGIES.

       The Secretary shall support the ongoing activities of the 
     National Center for Energy Management and Building 
     Technologies to carry out research, education, and training 
     activities to facilitate the improvement of energy 
     efficiency, indoor environmental quality, and security of 
     industrial, commercial, residential, and public buildings.

     SEC. 1106. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND 
                   TECHNICAL CAREERS.

       (a) Science Education Programs.--Section 3164 of the 
     Department of Energy Science Education Enhancement Act (42 
     U.S.C. 7381a) is amended by adding at the end the following:
       ``(c) Programs for Students from Under-Represented 
     Groups.--In carrying out a program under subsection (a), the 
     Secretary shall give priority to activities that are designed 
     to encourage students from under-represented groups to pursue 
     scientific and technical careers.''.
       (b) Partnerships With Historically Black Colleges and 
     Universities, Hispanic-Servicing Institutions, and Tribal 
     Colleges.--The Department of Energy Science Education 
     Enhancement Act (42 U.S.C. 7381 et seq.) is amended--
       (1) by redesignating sections 3167 and 3168 as sections 
     3168 and 3169, respectively; and
       (2) by inserting after section 3166 the following:

     ``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES 
                   AND UNIVERSITIES, HISPANIC-SERVING 
                   INSTITUTIONS, AND TRIBAL COLLEGES.

       ``(a) Definitions.--In this section:
       ``(1) Hispanic-serving institution.--The term `Hispanic-
     serving institution' has the meaning given the term in 
     section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).
       ``(2) Historically black college or university.--The term 
     `historically Black college or university' has the meaning 
     given the term `part B institution' in section 322 of the 
     Higher Education Act of 1965 (20 U.S.C. 1061).
       ``(3) National laboratory.--The term `National Laboratory' 
     has the meaning given the term in section 2 of the Energy 
     Policy Act of 2005.
       ``(4) Science facility.--The term `science facility' has 
     the meaning given the term `single-purpose research facility' 
     in section 903 of the Energy Policy Act of 2005.
       ``(5) Tribal college.--The term `tribal college' has the 
     meaning given the term `tribally controlled college or 
     university' in section 2(a) of the Tribally Controlled 
     College Assistance Act of 1978 (25 U.S.C. 1801(a)).
       ``(b) Education Partnership.--The Secretary shall require 
     the director of each National Laboratory, and may require the 
     head of any science facility, to increase the participation 
     of historically Black colleges or universities, Hispanic-
     serving institutions, or tribal colleges in any activity that 
     increases the capacity of the historically Black colleges or 
     universities, Hispanic-serving institutions, or tribal 
     colleges to train personnel in science or engineering.
       ``(c) Activities.--An activity described in subsection (b) 
     includes--
       ``(1) collaborative research;
       ``(2) equipment transfer;
       ``(3) training activities carried out at a National 
     Laboratory or science facility; and
       ``(4) mentoring activities carried out at a National 
     Laboratory or science facility.
       ``(d) Report.--Not later than 2 years after the date of 
     enactment of this subsection, the Secretary shall submit to 
     Congress a report describing the activities carried out under 
     this section.''.

     SEC. 1107. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND 
                   EDUCATION CENTER.

       (a) Establishment.--The Secretary shall support the 
     establishment of a National Power Plant Operations Technology 
     and Education Center (referred to in this section as the 
     ``Center''), to address the need for training and educating 
     certified operators for electric power generation plants.
       (b) Location of Center.--The Secretary shall support the 
     establishment of the Center at an institution of higher 
     education that has--
       (1) expertise in power plant technology and operation; and
       (2) the ability to provide onsite and Internet-based 
     training.
       (c) Training and continuing education.--
       (1) In general.--The Center shall provide training and 
     continuing education relating to electric power generation 
     plant technologies and operations.
       (2) Location.--The Center shall carry out training and 
     education activities under paragraph (1)--
       (A) at the Center; and
       (B) through Internet-based information technologies that 
     allow for learning at a remote site.

                         TITLE XII--ELECTRICITY

     SEC. 1201. SHORT TITLE.

       This title may be cited as the ``Electricity Modernization 
     Act of 2005''.

                   Subtitle A--Reliability Standards

     SEC. 1211. ELECTRIC RELIABILITY STANDARDS.

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

     ``SEC. 215. ELECTRIC RELIABILITY.

       ``(a) Definitions.--In this section:
       ``(1)(A) The term `bulk-power system' means--
       ``(i) facilities and control systems necessary for 
     operating an interconnected electric energy transmission 
     network (or any portion of such a network); and
       ``(ii) electric energy from generation facilities needed to 
     maintain transmission system reliability.
       ``(B) The term `bulk-power system' does not include 
     facilities used in the local distribution of electric energy.
       ``(2) The terms `Electric Reliability Organization' and 
     `ERO' mean the organization certified by the Commission under 
     subsection (c) the purpose of which is to establish and 
     enforce reliability standards for the bulk-power system, 
     subject to review by the Commission.
       ``(3)(A) The term `reliability standard' means a 
     requirement, approved by the Commission under this section, 
     to provide for reliable operation of the bulk-power system.
       ``(B) The term `reliability standard' includes requirements 
     for the operation of existing bulk-power system components 
     and the design of planned additions or modifications to those 
     components to the extent necessary to provide for reliable 
     operation of the bulk-power system, except that the term does 
     not include any requirement to enlarge those components or to 
     construct new transmission capacity or generation capacity.
       ``(4) The term `reliable operation' means operating the 
     components of the bulk-power system within equipment and 
     electric system thermal, voltage, and stability limits so 
     that instability, uncontrolled separation, or cascading 
     failures of the system will not occur as a result of a sudden 
     disturbance or unanticipated failure of system components.
       ``(5) The term `interconnection' means a geographic area in 
     which the operation of bulk-power system components is 
     synchronized such that the failure of 1 or more of the 
     components may adversely affect the ability of the operators 
     of other components within the system to maintain reliable 
     operation of the portion of the system within their control.
       ``(6) The term `regional entity' means an entity having 
     enforcement authority pursuant to subsection (e)(4).
       ``(b) Jurisdiction and Applicability.--(1) The Commission 
     shall have jurisdiction, within the United States, over the 
     ERO certified by the Commission under subsection (c), any 
     regional entities, and all users, owners and operators of the 
     bulk-power system (including the entities described in 
     section 201(f)), for purposes of approving reliability 
     standards established under this section and enforcing 
     compliance with this section.
       ``(2) All users, owners, and operators of the bulk-power 
     system shall comply with reliability standards that take 
     effect under this section.
       ``(3) The Commission shall issue a final rule to implement 
     the requirements of this section not later than 180 days 
     after the date of enactment of this section.
       ``(c) Certification.--(1) Following the issuance of a 
     Commission rule under subsection (b)(3), any person may 
     submit an application to the Commission for certification as 
     the Electric Reliability Organization.
       ``(2) The Commission may certify 1 such ERO if the 
     Commission determines that the ERO--
       ``(A) has the ability to develop and enforce, subject to 
     subsection (e)(2), reliability standards that provide for an 
     adequate level of reliability of the bulk-power system; and
       ``(B) has established rules that--
       ``(i) ensure the independence of the ERO from the users and 
     owners and operators of the bulk-power system, while ensuring 
     fair stakeholder representation in the selection of the 
     directors of the ERO and balanced decisionmaking in any ERO 
     committee or subordinate organizational structure;
       ``(ii) allocate equitably reasonable dues, fees, and other 
     charges among end users for all activities under this 
     section;
       ``(iii) provide fair and impartial procedures for 
     enforcement of reliability standards through the imposition 
     of penalties in accordance with subsection (e) (including 
     limitations on activities, functions, or operations, or other 
     appropriate sanctions);
       ``(iv) provide for reasonable notice and opportunity for 
     public comment, due process, openness, and balance of 
     interests in developing reliability standards and otherwise 
     exercising the duties of the ERO; and
       ``(v) provide for taking, after certification, appropriate 
     steps to gain recognition in Canada and Mexico.
       ``(d) Reliability Standards.--(1) The ERO shall file each 
     reliability standard or modification to a reliability 
     standard that the ERO proposes to be made effective under 
     this section with the Commission.
       ``(2)(A) The Commission may approve, by rule or order, a 
     proposed reliability standard

[[Page 12466]]

     or modification to a reliability standard if the Commission 
     determines that the standard is just, reasonable, not unduly 
     discriminatory or preferential, and in the public interest.
       ``(B) The Commission--
       ``(i) shall give due weight to the technical expertise of 
     the ERO with respect to the content of a proposed standard or 
     modification to a reliability standard and to the technical 
     expertise of a regional entity organized on an 
     interconnection-wide basis with respect to a reliability 
     standard to be applicable within that interconnection; but
       ``(ii) shall not defer with respect to the effect of a 
     standard on competition.
       ``(C) A proposed standard or modification shall take effect 
     on approval by the Commission.
       ``(3) The ERO shall rebuttably presume that a proposal from 
     a regional entity organized on an interconnection-wide basis 
     for a reliability standard or modification to a reliability 
     standard to be applicable on an interconnection-wide basis is 
     just, reasonable, not unduly discriminatory or preferential, 
     and in the public interest.
       ``(4) The Commission shall remand to the ERO for further 
     consideration a proposed reliability standard or a 
     modification to a reliability standard that the Commission 
     disapproves in whole or in part.
       ``(5) The Commission, on a motion of the Commission or on 
     complaint, may order the ERO to submit to the Commission a 
     proposed reliability standard or a modification to a 
     reliability standard that addresses a specific matter if the 
     Commission considers such a new or modified reliability 
     standard appropriate to carry out this section.
       ``(6)(A) The final rule adopted under subsection (b)(2) 
     shall include fair processes for the identification and 
     timely resolution of any conflict between a reliability 
     standard and any function, rule, order, tariff, rate 
     schedule, or agreement accepted, approved, or ordered by the 
     Commission applicable to a transmission organization.
       ``(B) The transmission organization shall continue to 
     comply with such function, rule, order, tariff, rate schedule 
     or agreement accepted approved, or ordered by the Commission 
     until--
       ``(i) the Commission finds a conflict exists between a 
     reliability standard and any such provision;
       ``(ii) the Commission orders a change to the provision 
     pursuant to section 206; and
       ``(iii) the ordered change becomes effective under this 
     part.
       ``(C) If the Commission determines that a reliability 
     standard needs to be changed as a result of such a conflict, 
     the Commission shall order the ERO to develop and file with 
     the Commission a modified reliability standard under 
     paragraph (4) or (5).
       ``(e) Enforcement.--(1) Subject to paragraph (2), the ERO 
     may impose a penalty on a user or owner or operator of the 
     bulk-power system for a violation of a reliability standard 
     approved by the Commission under subsection (d) if the ERO, 
     after notice and an opportunity for a hearing--
       ``(A) finds that the user or owner or operator has violated 
     a reliability standard approved by the Commission under 
     subsection (d); and
       ``(B) files notice and the record of the proceeding with 
     the Commission.
       ``(2)(A) A penalty imposed under paragraph (1) may take 
     effect not earlier than the day that is 31 days after the 
     date on which the ERO files with the Commission notice of the 
     penalty and the record of proceedings.
       ``(B) The penalty shall be subject to review by the 
     Commission on--
       ``(i) a motion by the Commission; or
       ``(ii) application by the user, owner or operator that is 
     the subject of the penalty filed not later than 30 days after 
     the date on which the notice is filed with the Commission.
       ``(C) Application to the Commission for review, or the 
     initiation of review by the Commission on a motion of the 
     Commission, shall not operate as a stay of the penalty unless 
     the Commission orders otherwise on a motion of the Commission 
     or on application by the user, owner or operator that is the 
     subject of the penalty.
       ``(D) In any proceeding to review a penalty imposed under 
     paragraph (1), the Commission, after notice and opportunity 
     for hearing (which hearing may consist solely of the record 
     before the ERO and opportunity for the presentation of 
     supporting reasons to affirm, modify, or set aside the 
     penalty), shall by order--
       ``(i) affirm, set aside, reinstate, or modify the penalty; 
     and
       ``(ii) if appropriate, remand to the ERO for further 
     proceedings.
       ``(E) The Commission shall implement expedited procedures 
     for the hearings described in subparagraph (D).
       ``(3) On a motion of the Commission or on complaint, the 
     Commission may order compliance with a reliability standard 
     and may impose a penalty against a user or owner or operator 
     of the bulk-power system if the Commission finds, after 
     notice and opportunity for a hearing, that the user or owner 
     or operator of the bulk-power system has engaged or is about 
     to engage in any act or practice that constitutes or will 
     constitute a violation of a reliability standard.
       ``(4)(A) The Commission shall issue regulations authorizing 
     the ERO to enter into an agreement to delegate authority to a 
     regional entity for the purpose of proposing reliability 
     standards to the ERO and enforcing reliability standards 
     under paragraph (1) if--
       ``(i) the regional entity is governed by--
       ``(I) an independent board;
       ``(II) a balanced stakeholder board; or
       ``(III) a combination independent and balanced stakeholder 
     board;
       ``(ii) the regional entity otherwise meets the requirements 
     of paragraphs (1) and (2) of subsection (c); and
       ``(iii) the agreement promotes effective and efficient 
     administration of bulk-power system reliability.
       ``(B) The Commission may modify a delegation under this 
     paragraph.
       ``(C) The ERO and the Commission shall rebuttably presume 
     that a proposal for delegation to a regional entity organized 
     on an interconnection-wide basis promotes effective and 
     efficient administration of bulk-power system reliability and 
     should be approved.
       ``(D) The regulation issued under this paragraph may 
     provide that the Commission may assign the authority of the 
     ERO to enforce reliability standards under paragraph (1) 
     directly to a regional entity in accordance with this 
     paragraph.
       ``(5) The Commission may take such action as is necessary 
     or appropriate against the ERO or a regional entity to ensure 
     compliance with a reliability standard or any Commission 
     order affecting the ERO or a regional entity.
       ``(6) Any penalty imposed under this section shall--
       ``(A) bear a reasonable relation to the seriousness of the 
     violation; and
       ``(B) take into consideration the efforts of the user, 
     owner, or operator to remedy the violation in a timely 
     manner.
       ``(f) Changes in Electric Reliability Organization Rules.--
     (1) The Electric Reliability Organization shall file with the 
     Commission for approval any proposed rule or proposed rule 
     change, accompanied by an explanation of the basis and 
     purpose of the rule and proposed rule change.
       ``(2) The Commission, upon a motion of the Commission or 
     upon complaint, may propose a change to the rules of the ERO.
       ``(3) A proposed rule or proposed rule change shall take 
     effect upon a finding by the Commission, after notice and 
     opportunity for comment, that the change is just, reasonable, 
     and not unduly discriminatory or preferential, is in the 
     public interest, and meets the requirements of subsection 
     (c).
       ``(g) Reliability Reports.--The ERO shall conduct periodic 
     assessments of the reliability and adequacy of the bulk-power 
     system in North America.
       ``(h) Coordination With Canada and Mexico.--The President 
     is urged to negotiate international agreements with the 
     governments of Canada and Mexico to provide for effective 
     compliance with reliability standards and the effectiveness 
     of the ERO in the United States and Canada or Mexico.
       ``(i) Savings Provisions.--(1) The ERO may develop and 
     enforce compliance with reliability standards for only the 
     bulk-power system.
       ``(2) Nothing in this section authorizes the ERO or the 
     Commission to order the construction of additional generation 
     or transmission capacity or to set and enforce compliance 
     with standards for adequacy or safety of electric facilities 
     or services.
       ``(3) Nothing in this section preempts any authority of any 
     State to take action to ensure the safety, adequacy, and 
     reliability of electric service within that State, as long as 
     the action is not inconsistent with any reliability standard.
       ``(4) Not later than 90 days after the date of application 
     of the Electric Reliability Organization or other affected 
     party, and after notice and opportunity for comment, the 
     Commission shall issue a final order determining whether a 
     State action is inconsistent with a reliability standard, 
     taking into consideration any recommendation of the ERO.
       ``(5) The Commission, after consultation with the ERO and 
     the State taking action, may stay the effectiveness of any 
     State action, pending the issuance by the Commission of a 
     final order.
       ``(j) Regional Advisory Bodies.--(1) The Commission shall 
     establish a regional advisory body on the petition of at 
     least \2/3\ of the States within a region that have more than 
     \1/2\ of the electric load of the States served within the 
     region.
       ``(2) A regional advisory body--
       ``(A) shall be composed of 1 member from each participating 
     State in the region, appointed by the Governor of the State; 
     and
       ``(B) may include representatives of agencies, States, and 
     provinces outside the United States.
       ``(3) A regional advisory body may provide advice to the 
     Electric Reliability Organization, a regional entity, or the 
     Commission regarding--
       ``(A) the governance of an existing or proposed regional 
     entity within the same region;
       ``(B) whether a standard proposed to apply within the 
     region is just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest;

[[Page 12467]]

       ``(C) whether fees proposed to be assessed within the 
     region are just, reasonable, not unduly discriminatory or 
     preferential, and in the public interest; and
       ``(D) any other responsibilities requested by the 
     Commission.
       ``(4) The Commission may give deference to the advice of a 
     regional advisory body if that body is organized on an 
     interconnection-wide basis.
       ``(k) Alaska and Hawaii.--This section does not apply to 
     Alaska or Hawaii.''.
       (b) Status of ERO.--The Electric Reliability Organization 
     certified by the Commission under section 215(c) of the 
     Federal Power Act (as added by subsection (a)) and any 
     regional entity delegated enforcement authority pursuant to 
     section 215(e)(4) of that Act (as so added) are not 
     departments, agencies, or instrumentalities of the Federal 
     Government.

         Subtitle B--Transmission Infrastructure Modernization

     SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION 
                   FACILITIES.

       (a) In General.--Part II of the Federal Power Act (16 
     U.S.C. 824 et seq.) (as amended by section 1211(a)) is 
     amended by adding at the end the following:

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

       ``(a) Designation of National Interest Electric 
     Transmission Corridors.--(1) Not later than 1 year after the 
     date of enactment of this section and every 3 years 
     thereafter, the Secretary of Energy (referred to in this 
     section as the `Secretary'), in consultation with affected 
     States, shall conduct a study of electric transmission 
     congestion.
       ``(2) After considering alternatives and recommendations 
     from interested parties (including an opportunity for comment 
     from affected States), the Secretary shall issue a report, 
     based on the study, which may designate any geographic area 
     experiencing electric energy transmission capacity 
     constraints or congestion that adversely affects consumers as 
     a national interest electric transmission corridor.
       ``(3) The Secretary shall conduct the study and issue the 
     report in consultation with any appropriate regional entity 
     referred to in section 215.
       ``(4) In determining whether to designate a national 
     interest electric transmission corridor under paragraph (2), 
     the Secretary may consider whether--
       ``(A) the economic vitality and development of the 
     corridor, or the end markets served by the corridor, may be 
     constrained by lack of adequate or reasonably priced 
     electricity;
       ``(B)(i) economic growth in the corridor, or the end 
     markets served by the corridor, may be jeopardized by 
     reliance on limited sources of energy; and
       ``(ii) a diversification of supply is warranted;
       ``(C) the energy independence of the United States would be 
     served by the designation;
       ``(D) the designation would be in the interest of national 
     energy policy; and
       ``(E) the designation would enhance national defense and 
     homeland security.
       ``(b) Construction Permit.--Except as provided in 
     subsection (i), the Commission may, after notice and an 
     opportunity for hearing, issue 1 or more permits for the 
     construction or modification of electric transmission 
     facilities in a national interest electric transmission 
     corridor designated by the Secretary under subsection (a) if 
     the Commission finds that--
       ``(1)(A) a State in which the transmission facilities are 
     to be constructed or modified does not have authority to--
       ``(i) approve the siting of the facilities; or
       ``(ii) consider the interstate benefits expected to be 
     achieved by the proposed construction or modification of 
     transmission facilities in the State;
       ``(B) the applicant for a permit is a transmitting utility 
     under this Act but does not qualify to apply for a permit or 
     siting approval for the proposed project in a State because 
     the applicant does not serve end-use customers in the State; 
     or
       ``(C) a State commission or other entity that has authority 
     to approve the siting of the facilities has--
       ``(i) withheld approval for more than 1 year after the 
     filing of an application seeking approval pursuant to 
     applicable law or 1 year after the designation of the 
     relevant national interest electric transmission corridor, 
     whichever is later; or
       ``(ii) conditioned its approval in such a manner that the 
     proposed construction or modification will not significantly 
     reduce transmission congestion in interstate commerce or is 
     not economically feasible;
       ``(2) the facilities to be authorized by the permit will be 
     used for the transmission of electric energy in interstate 
     commerce;
       ``(3) the proposed construction or modification is 
     consistent with the public interest;
       ``(4) the proposed construction or modification will 
     significantly reduce transmission congestion in interstate 
     commerce and protects or benefits consumers;
       ``(5) the proposed construction or modification is 
     consistent with sound national energy policy and will enhance 
     energy independence; and
       ``(6) the proposed modification will maximize, to the 
     extent reasonable and economical, the transmission 
     capabilities of existing towers or structures so as to 
     minimize the environmental and visual impact of the proposed 
     modification.
       ``(c) Permit Applications.--(1) Permit applications under 
     subsection (b) shall be made in writing to the Commission.
       ``(2) The Commission shall issue rules specifying--
       ``(A) the form of the application;
       ``(B) the information to be contained in the application; 
     and
       ``(C) the manner of service of notice of the permit 
     application on interested persons.
       ``(d) Comments.--In any proceeding before the Commission 
     under subsection (b), the Commission shall afford each State 
     in which a transmission facility covered by the permit is or 
     will be located, each affected Federal agency and Indian 
     tribe, private property owners, and other interested persons, 
     a reasonable opportunity to present their views and 
     recommendations with respect to the need for and impact of a 
     facility covered by the permit.
       ``(e) Rights-of-Way.--(1) In the case of a permit under 
     subsection (b) for electric transmission facilities to be 
     located on property other than property owned by the United 
     States or a State, if the permit holder cannot acquire by 
     contract, or is unable to agree with the owner of the 
     property to the compensation to be paid for, the necessary 
     right-of-way to construct or modify the transmission 
     facilities, the permit holder may acquire the right-of-way by 
     the exercise of the right of eminent domain in the district 
     court of the United States for the district in which the 
     property concerned is located, or in the appropriate court of 
     the State in which the property is located.
       ``(2) Any right-of-way acquired under paragraph (1) shall 
     be used exclusively for the construction or modification of 
     electric transmission facilities within a reasonable period 
     of time after the acquisition.
       ``(3) The practice and procedure in any action or 
     proceeding under this subsection in the district court of the 
     United States shall conform as nearly as practicable to the 
     practice and procedure in a similar action or proceeding in 
     the courts of the State in which the property is located.
       ``(f) Compensation.--(1) Any right-of-way acquired pursuant 
     to subsection (e) shall be considered a taking of private 
     property for which just compensation is due.
       ``(2) Just compensation shall be an amount equal to the 
     fair market value (including applicable severance damages) of 
     the property taken on the date of the exercise of eminent 
     domain authority.
       ``(g) State Law.--Nothing in this section precludes any 
     person from constructing or modifying any transmission 
     facility in accordance with State law.
       ``(h) Coordination of Federal Authorizations For 
     Transmission Facilities.--(1) In this subsection:
       ``(A) The term `Federal authorization' means any 
     authorization required under Federal law in order to site a 
     transmission facility.
       ``(B) The term `Federal authorization' includes such 
     permits, special use authorizations, certifications, 
     opinions, or other approvals as may be required under Federal 
     law in order to site a transmission facility.
       ``(2) The Department of Energy shall act as the lead agency 
     for purposes of coordinating all applicable Federal 
     authorizations and related environmental reviews of the 
     facility.
       ``(3) To the maximum extent practicable under applicable 
     Federal law, the Secretary shall coordinate the Federal 
     authorization and review process under this subsection with 
     any Indian tribes, multistate entities, and State agencies 
     that are responsible for conducting any separate permitting 
     and environmental reviews of the facility, to ensure timely 
     and efficient review and permit decisions.
       ``(4)(A) As head of the lead agency, the Secretary, in 
     consultation with agencies responsible for Federal 
     authorizations and, as appropriate, with Indian tribes, 
     multistate entities, and State agencies that are willing to 
     coordinate their own separate permitting and environmental 
     reviews with the Federal authorization and environmental 
     reviews, shall establish prompt and binding intermediate 
     milestones and ultimate deadlines for the review of, and 
     Federal authorization decisions relating to, the proposed 
     facility.
       ``(B) The Secretary shall ensure that, once an application 
     has been submitted with such data as the Secretary considers 
     necessary, all permit decisions and related environmental 
     reviews under all applicable Federal laws shall be 
     completed--
       ``(i) within 1 year; or
       ``(ii) if a requirement of another provision of Federal law 
     does not permit compliance with clause (i), as soon 
     thereafter as is practicable.
       ``(C) The Secretary shall provide an expeditious pre-
     application mechanism for prospective applicants to confer 
     with the agencies involved to have each such agency determine 
     and communicate to the prospective applicant not later than 
     60 days after the prospective applicant submits a request for 
     such information concerning--
       ``(i) the likelihood of approval for a potential facility; 
     and
       ``(ii) key issues of concern to the agencies and public.
       ``(5)(A) As lead agency head, the Secretary, in 
     consultation with the affected agencies,

[[Page 12468]]

     shall prepare a single environmental review document, which 
     shall be used as the basis for all decisions on the proposed 
     project under Federal law.
       ``(B) The Secretary and the heads of other agencies shall 
     streamline the review and permitting of transmission within 
     corridors designated under section 503 of the Federal Land 
     Policy and Management Act (43 U.S.C. 1763) by fully taking 
     into account prior analyses and decisions relating to the 
     corridors.
       ``(C) The document shall include consideration by the 
     relevant agencies of any applicable criteria or other matters 
     as required under applicable law.
       ``(6)(A) If any agency has denied a Federal authorization 
     required for a transmission facility, or has failed to act by 
     the deadline established by the Secretary pursuant to this 
     section for deciding whether to issue the authorization, the 
     applicant or any State in which the facility would be located 
     may file an appeal with the President, who shall, in 
     consultation with the affected agency, review the denial or 
     failure to take action on the pending application.
       ``(B) Based on the overall record and in consultation with 
     the affected agency, the President may--
       ``(i) issue the necessary authorization with any 
     appropriate conditions; or
       ``(ii) deny the application.
       ``(C) The President shall issue a decision not later than 
     90 days after the date of the filing of the appeal.
       ``(D) In making a decision under this paragraph, the 
     President shall comply with applicable requirements of 
     Federal law, including any requirements of--
       ``(i) the National Forest Management Act of 1976 (16 U.S.C. 
     472a et seq.);
       ``(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531 
     et seq.);
       ``(iii) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(iv) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       ``(v) the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1701 et seq.).
       ``(7)(A) Not later than 18 months after the date of 
     enactment of this section, the Secretary shall issue any 
     regulations necessary to implement this subsection.
       ``(B)(i) Not later than 1 year after the date of enactment 
     of this section, the Secretary and the heads of all Federal 
     agencies with authority to issue Federal authorizations shall 
     enter into a memorandum of understanding to ensure the timely 
     and coordinated review and permitting of electricity 
     transmission facilities.
       ``(ii) Interested Indian tribes, multistate entities, and 
     State agencies may enter the memorandum of understanding.
       ``(C) The head of each Federal agency with authority to 
     issue a Federal authorization shall designate a senior 
     official responsible for, and dedicate sufficient other staff 
     and resources to ensure, full implementation of the 
     regulations and memorandum required under this paragraph.
       ``(8)(A) Each Federal land use authorization for an 
     electricity transmission facility shall be issued--
       ``(i) for a duration, as determined by the Secretary, 
     commensurate with the anticipated use of the facility; and
       ``(ii) with appropriate authority to manage the right-of-
     way for reliability and environmental protection.
       ``(B) On the expiration of the authorization (including an 
     authorization issued before the date of enactment of this 
     section), the authorization shall be reviewed for renewal 
     taking fully into account reliance on such electricity 
     infrastructure, recognizing the importance of the 
     authorization for public health, safety, and economic welfare 
     and as a legitimate use of Federal land.
       ``(9) In exercising the responsibilities under this 
     section, the Secretary shall consult regularly with--
       ``(A) the Federal Energy Regulatory Commission;
       ``(B) electric reliability organizations (including related 
     regional entities) approved by the Commission; and
       ``(C) Transmission Organizations approved by the 
     Commission.
       ``(i) Interstate Compacts.--(1) The consent of Congress is 
     given for 3 or more contiguous States to enter into an 
     interstate compact, subject to approval by Congress, 
     establishing regional transmission siting agencies to--
       ``(A) facilitate siting of future electric energy 
     transmission facilities within those States; and
       ``(B) carry out the electric energy transmission siting 
     responsibilities of those States.
       ``(2) The Secretary may provide technical assistance to 
     regional transmission siting agencies established under this 
     subsection.
       ``(3) The regional transmission siting agencies shall have 
     the authority to review, certify, and permit siting of 
     transmission facilities, including facilities in national 
     interest electric transmission corridors (other than 
     facilities on property owned by the United States).
       ``(4) The Commission shall have no authority to issue a 
     permit for the construction or modification of an electric 
     transmission facility within a State that is a party to a 
     compact, unless the members of the compact are in 
     disagreement and the Secretary makes, after notice and an 
     opportunity for a hearing, the finding described in 
     subsection (b)(1)(C).
       ``(j) Relationship to Other Laws.--(1) Except as 
     specifically provided, nothing in this section affects any 
     requirement of an environmental law of the United States, 
     including the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       ``(2) Subsection (h)(6) shall not apply to any unit of the 
     National Park System, the National Wildlife Refuge System, 
     the National Wild and Scenic Rivers System, the National 
     Trails System, the National Wilderness Preservation System, 
     or a National Monument.''.
       (b) Reports to Congress on Corridors and Rights of Way on 
     Federal Lands.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of the Interior, the 
     Secretary, the Secretary of Agriculture, and the Chairman of 
     the Council on Environmental Quality shall submit to Congress 
     a joint report identifying--
       (1)(A) all existing designated transmission and 
     distribution corridors on Federal land and the status of work 
     related to proposed transmission and distribution corridor 
     designations under title V of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1761 et seq.);
       (B) the schedule for completing the work;
       (C) any impediments to completing the work; and
       (D) steps that Congress could take to expedite the process;
       (2)(A) the number of pending applications to locate 
     transmission facilities on Federal land;
       (B) key information relating to each such facility;
       (C) how long each application has been pending;
       (D) the schedule for issuing a timely decision as to each 
     facility; and
       (E) progress in incorporating existing and new such rights-
     of-way into relevant land use and resource management plans 
     or the equivalent of those plans; and
       (3)(A) the number of existing transmission and distribution 
     rights-of-way on Federal land that will come up for renewal 
     within the following 5-, 10-, and 15-year periods; and
       (B) a description of how the Secretaries plan to manage the 
     renewals.

     SEC. 1222. THIRD-PARTY FINANCE.

       (a) Existing Facilities.--The Secretary, acting through the 
     Administrator of the Western Area Power Administration 
     (referred to in this section as ``WAPA'') or the 
     Administrator of the Southwestern Power Administration 
     (referred to in this section as ``SWPA''), or both, may carry 
     out a project to design, develop, construct, operate, 
     maintain, or own, or participate with other entities in 
     designing, developing, constructing, operating, maintaining, 
     or owning, an electric power transmission facility and 
     related facilities needed to upgrade existing transmission 
     facilities owned by the SWPA or WAPA if the Secretary, in 
     consultation with the applicable Administrator, determines 
     that the proposed project--
       (1)(A) is located in a national interest electric 
     transmission corridor designated under section 216(a) of the 
     Federal Power Act and will reduce congestion of electric 
     transmission in interstate commerce; or
       (B) is necessary to accommodate an actual or projected 
     increase in demand for electric transmission capacity;
       (2) is consistent with--
       (A) transmission needs identified, in a transmission 
     expansion plan or otherwise, by the appropriate Transmission 
     Organization (as defined in section 3 of the Federal Power 
     Act (16 U.S.C. 796)), if any, or approved regional 
     reliability organization; and
       (B) efficient and reliable operation of the transmission 
     grid; and
       (3) would be operated in conformance with prudent utility 
     practice.
       (b) New Facilities.--The Secretary, acting through the WAPA 
     or SWPA, or both, may carry out a project to design, develop, 
     construct, operate, maintain, or own, or participate with 
     other entities in designing, developing, constructing, 
     operating, maintaining, or owning, a new electric power 
     transmission facility and related facilities located within 
     any State in which the WAPA or SWPA operates if the 
     Secretary, in consultation with the applicable Administrator, 
     determines that the proposed project--
       (1)(A) is located in a national interest electric 
     transmission corridor designated under section 216(a) of the 
     Federal Power Act and will reduce congestion of electric 
     transmission in interstate commerce; or
       (B) is necessary to accommodate an actual or projected 
     increase in demand for electric transmission capacity;
       (2) is consistent with--
       (A) transmission needs identified, in a transmission 
     expansion plan or otherwise, by the appropriate Transmission 
     Organization, if any, or approved regional reliability 
     organization; and
       (B) efficient and reliable operation of the transmission 
     grid;
       (3) will be operated in conformance with prudent utility 
     practice;
       (4) will be operated by, or in conformance with the rules 
     of, the appropriate--
       (A) Transmission Organization, if any; or

[[Page 12469]]

       (B) if such an organization does not exist, regional 
     reliability organization; and
       (5) will not duplicate the functions of existing 
     transmission facilities or proposed facilities that are the 
     subject of ongoing or approved siting and related permitting 
     proceedings.
       (c) Other Funds.--
       (1) In general.--In carrying out a project under subsection 
     (a) or (b), the Secretary may accept and use funds 
     contributed by another entity for the purpose of carrying out 
     the project.
       (2) Availability.--The contributed funds shall be available 
     for expenditure for the purpose of carrying out the project--
       (A) without fiscal year limitation; and
       (B) as if the funds had been appropriated specifically for 
     the project.
       (3) Allocation of costs.--In carrying out a project under 
     subsection (a) or (b), any costs of the project not paid for 
     by contributions from another entity shall be--
       (A) collected through rates charged to customers using the 
     new transmission capability provided by the project; and
       (B) allocated equitably among these project beneficiaries 
     using the new transmission capability.
       (d) Relationship to Other Laws.--Nothing in this section 
     affects any requirement of--
       (1) any Federal environmental law, including the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       (2) any Federal or State law relating to the siting of 
     energy facilities; or
       (3) any authorizing law in effect on the date of enactment 
     of this Act.
       (e) Savings Clause.--Nothing in this section constrains or 
     restricts an Administrator in the use of other authority 
     delegated to the Administrator of the WAPA or SWPA.
       (f) Secretarial Determinations.--Any determination made 
     pursuant to subsection (a) or (b) shall be based on findings 
     by the Secretary using the best available data.
       (g) Maximum Funding Amount.--The Secretary shall not accept 
     and use more than $100,000,000 under subsection (c)(1) for 
     the period of fiscal years 2006 through 2013.

     SEC. 1223. ADVANCED TRANSMISSION TECHNOLOGIES.

       (a) Definition of Advanced Transmission Technology.--In 
     this section, the term ``advanced transmission technology'' 
     means a technology that increases the capacity, efficiency, 
     or reliability of an existing or new transmission facility, 
     including--
       (1) high-temperature lines (including superconducting 
     cables);
       (2) underground cables;
       (3) advanced conductor technology (including advanced 
     composite conductors, high-temperature low-sag conductors, 
     and fiber optic temperature sensing conductors);
       (4) high-capacity ceramic electric wire, connectors, and 
     insulators;
       (5) optimized transmission line configurations (including 
     multiple phased transmission lines);
       (6) modular equipment;
       (7) wireless power transmission;
       (8) ultra-high voltage lines;
       (9) high-voltage DC technology;
       (10) flexible AC transmission systems;
       (11) energy storage devices (including pumped hydro, 
     compressed air, superconducting magnetic energy storage, 
     flywheels, and batteries);
       (12) controllable load;
       (13) distributed generation (including PV, fuel cells, and 
     microturbines);
       (14) enhanced power device monitoring;
       (15) direct system state sensors;
       (16) fiber optic technologies;
       (17) power electronics and related software (including real 
     time monitoring and analytical software);
       (18) mobile transformers and mobile substations; and
       (19) any other technologies the Commission considers 
     appropriate.
       (b) Authority.--In carrying out the Federal Power Act (16 
     U.S.C. 791a et seq.) and the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2601 et seq.), the Commission 
     shall encourage, as appropriate, the deployment of advanced 
     transmission technologies.

     SEC. 1224. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE 
                   PROGRAM.

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

            Subtitle C--Transmission Operation Improvements

     SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.

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

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

       ``(a) Definition of Unregulated Transmitting Utility.--In 
     this section, the term `unregulated transmitting utility' 
     means an entity that--
       ``(1) owns or operates facilities used for the transmission 
     of electric energy in interstate commerce; and
       ``(2) is an entity described in section 201(f).
       ``(b) Transmission Operation Improvements.--Subject to 
     section 212(h), the Commission may, by rule or order, require 
     an unregulated transmitting utility to provide transmission 
     services--
       ``(1) at rates that are comparable to those that the 
     unregulated transmitting utility charges itself; and
       ``(2) on terms and conditions (not relating to rates) that 
     are comparable to those under which the unregulated 
     transmitting utility provides transmission services to itself 
     and that are not unduly discriminatory or preferential.
       ``(c) Exemption.--The Commission shall exempt from any rule 
     or order under this section any unregulated transmitting 
     utility that--
       ``(1) sells not more than 4,000,000 megawatt hours of 
     electricity per year;
       ``(2) does not own or operate any transmission facilities 
     that are necessary for operating an interconnected 
     transmission system (or any portion of the system); or
       ``(3) meets other criteria the Commission determines to be 
     in the public interest.
       ``(d) Local Distribution Facilities.--The requirements of 
     subsection (b) shall not apply to facilities used in local 
     distribution.
       ``(e) Exemption Termination.--If the Commission, after an 
     evidentiary hearing held on a complaint and after giving 
     consideration to reliability standards established under 
     section 215, finds on the basis of a preponderance of the 
     evidence that any exemption granted pursuant to subsection 
     (c) unreasonably impairs the continued reliability of an 
     interconnected transmission system, the Commission shall 
     revoke the exemption granted to the transmitting utility.
       ``(f) Application to Unregulated Transmitting Utilities.--
     The rate changing procedures applicable to public utilities 
     under subsections (c) and (d) of section 205 are applicable 
     to unregulated transmitting utilities for purposes of this 
     section.
       ``(g) Remand.--In exercising authority under subsection 
     (b)(1), the Commission may remand transmission rates to an 
     unregulated transmitting utility for review and revision if 
     necessary to meet the requirements of subsection (b).
       ``(h) Other Requests.--The provision of transmission 
     services under subsection (b) does not preclude a request for 
     transmission services under section 211.
       ``(i) Limitation.--The Commission may not require a State 
     or municipality to take action under this section that would 
     violate a private activity bond rule for purposes of section 
     141 of the Internal Revenue Code of 1986.
       ``(j) Transfer of Control of Transmitting Facilities.--
     Nothing in this section authorizes the Commission to require 
     an unregulated transmitting utility to transfer control or 
     operational control of its transmitting facilities to a 
     Transmission Organization that is designated to provide 
     nondiscriminatory transmission access.''.

[[Page 12470]]



     SEC. 1232. REGIONAL TRANSMISSION ORGANIZATIONS.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1221(a)) is amended by adding at the 
     end the following:

     ``SEC. 217. PROMOTION OF VOLUNTARY TRANSMISSION 
                   ORGANIZATIONS.

       ``(a) In General.--The Commission may encourage and may 
     approve the voluntary formation of RTOs, ISOs, or other 
     similar organizations approved by the Commission for the 
     purposes of--
       ``(1) promoting fair, open access to electric transmission 
     service;
       ``(2) facilitating wholesale competition;
       ``(3) improving efficiencies in transmission grid 
     management;
       ``(4) promoting grid reliability;
       ``(5) removing opportunities for unduly discriminatory or 
     preferential transmission practices; and
       ``(6) providing for the efficient development of 
     transmission infrastructure needed to meet the growing 
     demands of competitive wholesale power markets.
       ``(b) Operational Control.--No order issued under this Act 
     shall be conditioned on or require a transmitting utility to 
     transfer operational control of jurisdictional facilities to 
     a Transmission Organization approved by the Commission.
       ``(c) Annual Audits.--(1) Each Transmission Organization 
     shall report to the Commission on a scheduled basis, as 
     determined by the Commission, the means by which the 
     Transmission Organization will ensure that the Transmission 
     Organization will operate and perform the functions of the 
     Transmission Organization in a cost effective manner that is 
     also consistent with the obligations of the Transmission 
     Organization under the Commission-approved tariffs and 
     agreements of the Transmission Organization.
       ``(2) The Commission shall annually audit the compliance of 
     the Transmission Organization with the filed plan and any 
     additional Commission requirements concerning the 
     performance, operations, and cost efficiencies of the 
     Transmission Organization.
       ``(3) The Commission shall establish appropriate accounting 
     procedures for recording costs to facilitate comparisons 
     among Transmission Organizations and, to the extent 
     practicable, among other transmitting utilities performing 
     similar functions.''.

     SEC. 1233. FEDERAL UTILITY PARTICIPATION IN TRANSMISSION 
                   ORGANIZATIONS.

       (a) Definitions.--In this section--
       (1) Appropriate federal regulatory authority.--The term 
     ``appropriate Federal regulatory authority'' means--
       (A) in the case of a Federal power marketing agency, the 
     Secretary, except that the Secretary may designate the 
     Administrator of a Federal power marketing agency to act as 
     the appropriate Federal regulatory authority with respect to 
     the transmission system of the Federal power marketing 
     agency; and
       (B) in the case of the Tennessee Valley Authority, the 
     Board of Directors of the Tennessee Valley Authority.
       (2) Federal power marketing agency.--The term ``Federal 
     power marketing agency'' has the meaning given the term in 
     section 3 of the Federal Power Act (16 U.S.C. 796).
       (3) Federal utility.--The term ``Federal utility'' means--
       (A) a Federal power marketing agency; or
       (B) the Tennessee Valley Authority.
       (4) Transmission organization.--The term ``Transmission 
     Organization'' has the meaning given the term in section 3 of 
     the Federal Power Act (16 U.S.C. 796).
       (5) Transmission system.--The term ``transmission system'' 
     means an electric transmission facility owned, leased, or 
     contracted for by the United States and operated by a Federal 
     utility.
       (b) Transfer.--The appropriate Federal regulatory authority 
     may enter into a contract, agreement, or other arrangement 
     transferring control and use of all or part of the 
     transmission system of a Federal utility to a Transmission 
     Organization.
       (c) Contents.--The contract, agreement, or arrangement 
     shall include--
       (1) performance standards for operation and use of the 
     transmission system that the head of the Federal utility 
     determines are necessary or appropriate, including standards 
     that ensure--
       (A) recovery of all of the costs and expenses of the 
     Federal utility related to the transmission facilities that 
     are the subject of the contract, agreement, or other 
     arrangement;
       (B) consistency with existing contracts and third-party 
     financing arrangements; and
       (C) consistency with the statutory authorities, 
     obligations, and limitations of the Federal utility;
       (2) provisions for monitoring and oversight by the Federal 
     utility of the Transmission Organization's terms and 
     conditions of the contract, agreement, or other arrangement, 
     including a provision for the resolution of disputes through 
     arbitration or other means with the Transmission Organization 
     or with other participants, notwithstanding the obligations 
     and limitations of any other law regarding arbitration; and
       (3) a provision that allows the Federal utility to withdraw 
     from the Transmission Organization and terminate the 
     contract, agreement, or other arrangement in accordance with 
     its terms.
       (d) Commission.--Neither this section, actions taken 
     pursuant to this section, nor any other transaction of a 
     Federal utility participating in a Transmission Organization 
     shall confer on the Commission jurisdiction or authority 
     over--
       (1) the electric generation assets, electric capacity, or 
     energy of the Federal utility that the Federal utility is 
     authorized by law to market; or
       (2) the power sales activities of the Federal utility.
       (e) Existing Statutory and Other Obligations.--
       (1) System operation requirements.--No statutory provision 
     requiring or authorizing a Federal utility to transmit 
     electric power or to construct, operate, or maintain the 
     transmission system of the Federal utility prohibits a 
     transfer of control and use of the transmission system 
     pursuant to, and subject to, the requirements of this 
     section.
       (2) Other obligations.--This subsection does not--
       (A) suspend, or exempt any Federal utility from, any 
     provision of Federal law in effect on the date of enactment 
     of this Act, including any requirement or direction relating 
     to the use of the transmission system of the Federal utility, 
     environmental protection, fish and wildlife protection, flood 
     control, navigation, water delivery, or recreation; or
       (B) authorize abrogation of any contract or treaty 
     obligation.
       (3) Conforming amendment.--Section 311 of the Energy and 
     Water Development Appropriations Act, 2001 (16 U.S.C. 824n) 
     is repealed.

     SEC. 1234. STANDARD MARKET DESIGN.

       The proposed rulemaking of the Commission entitled 
     ``Remedying Undue Discrimination through Open Access 
     Transmission Service and Standard Electricity Market Design'' 
     (Docket No. RM01-12-000) (commonly known as ``SMD NOPR'') is 
     terminated and shall not be reissued.

     SEC. 1235. NATIVE LOAD SERVICE OBLIGATION.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1232) is amended by adding at the end 
     the following:

     ``SEC. 218. NATIVE LOAD SERVICE OBLIGATION.

       ``(a) Definitions.--In this section:
       ``(1) The term `distribution utility' means an electric 
     utility that has a service obligation to end-users or to a 
     State utility or electric cooperative that, directly or 
     indirectly, through 1 or more additional State utilities or 
     electric cooperatives, provides electric service to end-
     users.
       ``(2) The term `load-serving entity' means a distribution 
     utility or an electric utility that has a service obligation.
       ``(3) The term `service obligation' means a requirement 
     applicable to, or the exercise of authority granted to, an 
     electric utility under Federal, State, or local law or under 
     long-term contracts to provide electric service to end-users 
     or to a distribution utility.
       ``(4) The term `State utility' means a State or any 
     political subdivision of a State, or any agency, authority, 
     or instrumentality of any 1 or more States or political 
     subdivisions, or a corporation that is wholly owned, directly 
     or indirectly, by any 1 or more of the States or political 
     subdivisions, competent to carry on the business of 
     developing, transmitting, using, or distributing power.
       ``(b) Meeting Service Obligations.--(1) Paragraph (2) 
     applies to any load-serving entity that, as of the date of 
     enactment of this section--
       ``(A) owns generation facilities, markets the output of 
     Federal generation facilities, or holds rights under 1 or 
     more wholesale contracts to purchase electric energy, for the 
     purpose of meeting a service obligation; and
       ``(B) by reason of ownership of transmission facilities, or 
     1 or more contracts or service agreements for firm 
     transmission service, holds firm transmission rights for 
     delivery of the output of the generation facilities or the 
     purchased energy to meet the service obligation.
       ``(2) Any load-serving entity described in paragraph (1) is 
     entitled to use the firm transmission rights, or, equivalent 
     tradable or financial transmission rights, in order to 
     deliver the output or purchased energy, or the output of 
     other generating facilities or purchased energy to the extent 
     deliverable using the rights, to the extent required to meet 
     the service obligation of the load-serving entity.
       ``(3)(A) To the extent that all or a portion of the service 
     obligation covered by the firm transmission rights or 
     equivalent tradable or financial transmission rights is 
     transferred to another load-serving entity, the successor 
     load-serving entity shall be entitled to use the firm 
     transmission rights or equivalent tradable or financial 
     transmission rights associated with the transferred service 
     obligation.
       ``(B) Subsequent transfers to another load-serving entity, 
     or back to the original load-serving entity, shall be 
     entitled to the same rights.
       ``(4) The Commission shall exercise the authority of the 
     Commission under this Act in a manner that facilitates the 
     planning and expansion of transmission facilities to meet the 
     reasonable needs of load-serving entities to satisfy the 
     service obligations of the load-serving entities, and enables 
     load-serving entities to secure firm transmission rights (or

[[Page 12471]]

     equivalent tradable or financial rights) on a long term basis 
     for long term power supply arrangements made, or planned, to 
     meet such needs.
       ``(c) Allocation of Transmission Rights.--Nothing in 
     subsections (b)(1), (b)(2) and (b)(3) of this section shall 
     affect any existing or future methodology employed by a 
     Transmission Organization for allocating or auctioning 
     transmission rights if such Transmission Organization was 
     authorized by the Commission to allocate or auction financial 
     transmission rights on its system as of January 1, 2005, and 
     the Commission determines that any future allocation or 
     auction is just, reasonable and not unduly discriminatory or 
     preferential, provided, however, that if such a Transmission 
     Organization never allocated financial transmission rights on 
     its system that pertained to a period before January 1, 2005, 
     with respect to any application by such Transmission 
     Organization that would change its methodology the Commission 
     shall exercise its authority in a manner consistent with the 
     Act and that takes into account the policies expressed in 
     subsections (b)(1), (b)(2) and (b)(3) as applied to firm 
     transmission rights held by a load-serving entity as of 
     January 1, 2005, to the extent the associated generation 
     ownership or power purchase arrangements remain in effect.
       ``(d) Certain Transmission Rights.--The Commission may 
     exercise authority under this Act to make transmission rights 
     not used to meet an obligation covered by subsection (b) 
     available to other entities in a manner determined by the 
     Commission to be just, reasonable, and not unduly 
     discriminatory or preferential.
       ``(e) Obligation to Build.--Nothing in this Act relieves a 
     load-serving entity from any obligation under State or local 
     law to build transmission or distribution facilities adequate 
     to meet the service obligations of the load-serving entity.
       ``(f) Contracts.--Nothing in this section shall provide a 
     basis for abrogating any contract or service agreement for 
     firm transmission service or rights in effect as of the date 
     of the enactment of this subsection. If an ISO in the Western 
     Interconnection had allocated financial transmission rights 
     prior to the date of enactment of this section but had not 
     done so with respect to one or more load-serving entities' 
     firm transmission rights held under contracts to which the 
     preceding sentence applies (or held by reason of ownership or 
     future ownership of transmission facilities), such load-
     serving entities may not be required, without their consent, 
     to convert such firm transmission rights to tradable or 
     financial rights, except where the load-serving entity has 
     voluntarily joined the ISO as a participating transmission 
     owner (or its successor) in accordance with the ISO tariff.
       ``(g) Water Pumping Facilities.--The Commission shall 
     ensure that any entity described in section 201(f) that owns 
     transmission facilities used predominately to support its own 
     water pumping facilities shall have, with respect to the 
     facilities, protections for transmission service comparable 
     to those provided to load-serving entities pursuant to this 
     section.
       ``(h) ERCOT.--This section shall not apply within the area 
     referred to in section 212(k)(2)(A).
       ``(i) Jurisdiction.--This section does not authorize the 
     Commission to take any action not otherwise within the 
     jurisdiction of the Commission.
       ``(j) TVA Area.--(1) Subject to paragraphs (2) and (3), for 
     purposes of subsection (b)(1)(B), a load-serving entity that 
     is located within the service area of the Tennessee Valley 
     Authority and that has a firm wholesale power supply contract 
     with the Tennessee Valley Authority shall be considered to 
     hold firm transmission rights for the transmission of the 
     power provided.
       ``(2) Nothing in this subsection affects the requirements 
     of section 212(j).
       ``(3) The Commission shall not issue an order on the basis 
     of this subsection that is contrary to the purposes of 
     section 212(j).''.
       (h) FERC Rulemaking on Long-Term Transmission Rights in 
     Organized Markets.--Within one year after the date of 
     enactment of this section and after notice and an opportunity 
     for comment, the Commission shall by rule or order implement 
     subsection (b)(4) in Transmission Organizations with 
     organized electricity markets.
       (i) Effect of Exercising Rights.--An entity that to the 
     extent required to meet its service obligations exercises 
     rights described in subsection (b) shall not be considered by 
     such action as engaging in undue discrimination or preference 
     under this Act.

     SEC. 1236. PROTECTION OF TRANSMISSION CONTRACTS IN THE 
                   PACIFIC NORTHWEST.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1235) is amended by adding at the end 
     the following:

     ``SEC. 219. PROTECTION OF TRANSMISSION CONTRACTS IN THE 
                   PACIFIC NORTHWEST.

       ``(a) Definition of electric utility or person.--In this 
     section, the term `electric utility or person' means an 
     electric utility or person that--
       ``(1) as of the date of enactment of the Energy Policy Act 
     of 2005 holds firm transmission rights pursuant to contract 
     or by reason of ownership of transmission facilities; and
       ``(2) is located--
       ``(A) in the Pacific Northwest, as that region is defined 
     in section 3 of the Pacific Northwest Electric Power Planning 
     and Conservation Act (16 U.S.C. 839a); or
       ``(B) in that portion of a State included in the geographic 
     area proposed for a regional transmission organization in 
     Commission Docket Number RT01-35 on the date on which that 
     docket was opened.
       ``(b) Protection of Transmission Contracts.--Nothing in 
     this Act confers on the Commission the authority to require 
     an electric utility or person to convert to tradable or 
     financial rights--
       ``(1) firm transmission rights described in subsection 
     (a)(1); or
       ``(2) firm transmission rights obtained by exercising 
     contract or tariff rights associated with the firm 
     transmission rights described in subsection (a)(1).''.

                  Subtitle D--Transmission Rate Reform

     SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1236) is amended by adding at the end 
     the following:

     ``SEC. 220. TRANSMISSION INFRASTRUCTURE INVESTMENT.

       ``(a) Rulemaking Requirement.--Not later than 1 year after 
     the date of enactment of this section, the Commission shall 
     establish, by rule, incentive-based (including performance-
     based) rate treatments for the transmission of electric 
     energy in interstate commerce by public utilities for the 
     purpose of benefiting consumers by ensuring reliability and 
     reducing the cost of delivered power by reducing transmission 
     congestion.
       ``(b) Contents.--The rule shall--
       ``(1) promote reliable and economically efficient 
     transmission and generation of electricity by promoting 
     capital investment in the enlargement, improvement, 
     maintenance, and operation of all facilities for the 
     transmission of electric energy in interstate commerce, 
     regardless of the ownership of the facilities;
       ``(2) provide a return on equity that attracts new 
     investment in transmission facilities (including related 
     transmission technologies);
       ``(3) encourage deployment of transmission technologies and 
     other measures to increase the capacity and efficiency of 
     existing transmission facilities and improve the operation of 
     the facilities; and
       ``(4) allow recovery of--
       ``(A) all prudently incurred costs necessary to comply with 
     mandatory reliability standards issued pursuant to section 
     215; and
       ``(B) all prudently incurred costs related to transmission 
     infrastructure development pursuant to section 216.
       ``(c) Just and Reasonable Rates.--All rates approved under 
     the rules adopted pursuant to this section, including any 
     revisions to the rules, are subject to the requirements of 
     sections 205 and 206 that all rates, charges, terms, and 
     conditions be just and reasonable and not unduly 
     discriminatory or preferential.''.

     SEC. 1242. FUNDING NEW INTERCONNECTION AND TRANSMISSION 
                   UPGRADES.

       The Commission may approve a participant funding plan that 
     allocates costs related to transmission upgrades or new 
     generator interconnection, without regard to whether an 
     applicant is a member of a Commission-approved Transmission 
     Organization, if the plan results in rates that--
       (1) are just and reasonable;
       (2) are not unduly discriminatory or preferential; and
       (3) are otherwise consistent with sections 205 and 206 of 
     the Federal Power Act (16 U.S.C. 824d, 824e).

                    Subtitle E--Amendments to PURPA

     SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.

       (a) Adoption of Standards.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     is amended by adding at the end the following:
       ``(11) Net metering.--Each electric utility shall make 
     available upon request net metering service to any electric 
     consumer that the electric utility serves. For purposes of 
     this paragraph, the term `net metering service' means service 
     to an electric consumer under which electric energy generated 
     by that electric consumer from an eligible on-site generating 
     facility and delivered to the local distribution facilities 
     may be used to offset electric energy provided by the 
     electric utility to the electric consumer during the 
     applicable billing period.
       ``(12) Fuel sources.--Each electric utility shall develop a 
     plan to minimize dependence on 1 fuel source and to ensure 
     that the electric energy it sells to consumers is generated 
     using a diverse range of fuels and technologies, including 
     renewable technologies.
       ``(13) Fossil fuel generation efficiency.--Each electric 
     utility shall develop and implement a 10-year plan to 
     increase the efficiency of its fossil fuel generation.''.
       (b) Compliance.--
       (1) Time limitations.--Section 112(b) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is 
     amended by adding at the end the following:

[[Page 12472]]

       ``(3)(A) Not later than 2 years after the enactment of this 
     paragraph, each State regulatory authority (with respect to 
     each electric utility for which it has ratemaking authority) 
     and each nonregulated electric utility shall commence the 
     consideration referred to in section 111, or set a hearing 
     date for such consideration, with respect to each standard 
     established by paragraphs (11) through (13) of section 
     111(d).
       ``(B) Not later than 3 years after the date of the 
     enactment of this paragraph, each State regulatory authority 
     (with respect to each electric utility for which it has 
     ratemaking authority), and each nonregulated electric 
     utility, shall complete the consideration, and shall make the 
     determination, referred to in section 111 with respect to 
     each standard established by paragraphs (11) through (13) of 
     section 111(d).''.
       (2) Failure to comply.--Section 112(c) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) 
     is amended by adding at the end the following:

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

     SEC. 1252. SMART METERING.

       (a) In General.--Section 111(d) of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
     amended by adding at the end the following:
       ``(14) Time-based metering and communications.--
       ``(A) Not later than 18 months after the date of enactment 
     of this paragraph, each electric utility shall offer each of 
     its customer classes, and provide individual customers upon 
     customer request, a time-based rate schedule under which the 
     rate charged by the electric utility varies during different 
     time periods and reflects the variance, if any, in the 
     utility's costs of generating and purchasing electricity at 
     the wholesale level. The time-based rate schedule shall 
     enable the electric consumer to manage energy use and cost 
     through advanced metering and communications technology.
       ``(B) The types of time-based rate schedules that may be 
     offered under the schedule referred to in subparagraph (A) 
     include, among others--
       ``(i) time-of-use pricing whereby electricity prices are 
     set for a specific time period on an advance or forward 
     basis, typically not changing more often than twice a year, 
     based on the utility's cost of generating and/or purchasing 
     such electricity at the wholesale level for the benefit of 
     the consumer. Prices paid for energy consumed during these 
     periods shall be pre-established and known to consumers in 
     advance of such consumption, allowing them to vary their 
     demand and usage in response to such prices and manage their 
     energy costs by shifting usage to a lower cost period or 
     reducing their consumption overall;
       ``(ii) critical peak pricing whereby time-of-use prices are 
     in effect except for certain peak days, when prices may 
     reflect the costs of generating and/or purchasing electricity 
     at the wholesale level and when consumers may receive 
     additional discounts for reducing peak period energy 
     consumption;
       ``(iii) real-time pricing whereby electricity prices are 
     set for a specific time period on an advanced or forward 
     basis, reflecting the utility's cost of generating and/or 
     purchasing electricity at the wholesale level, and may change 
     as often as hourly; and
       ``(iv) credits for consumers with large loads who enter 
     into pre-established peak load reduction agreements that 
     reduce the planned capacity obligations of a utility.
       ``(C) Each electric utility subject to subparagraph (A) 
     shall provide each customer requesting a time-based rate with 
     a time-based meter capable of enabling the utility and 
     customer to offer and receive such rate, respectively.
       ``(D) For purposes of implementing this paragraph, any 
     reference contained in this section to the date of enactment 
     of the Public Utility Regulatory Policies Act of 1978 shall 
     be deemed to be a reference to the date of enactment of this 
     paragraph.
       ``(E) In a State that permits third-party marketers to sell 
     electric energy to retail electric consumers, such consumers 
     shall be entitled to receive the same time-based metering and 
     communications device and service as a retail electric 
     consumer of the electric utility.
       ``(F) Notwithstanding subsections (b) and (c) of section 
     112, each State regulatory authority shall, not later than 18 
     months after the date of enactment of this paragraph conduct 
     an investigation in accordance with section 115(i) and issue 
     a decision whether it is appropriate to implement the 
     standards set out in subparagraphs (A) and (C).''.
       (b) State Investigation of Demand Response and Time-Based 
     Metering.--Section 115 of the Public Utilities Regulatory 
     Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
       (1) By inserting in subsection (b) after the phrase ``the 
     standard for time-of-day rates established by section 
     111(d)(3)'' the following: ``and the standard for time-based 
     metering and communications established by section 
     111(d)(14)''.
       (2) By inserting in subsection (b) after the phrase ``are 
     likely to exceed the metering'' the following: ``and 
     communications''.
       (3) By adding at the end the following:
       ``(i) Time-based metering and communications.--In making a 
     determination with respect to the standard established by 
     section 111(d)(14), the investigation requirement of section 
     111(d)(14)(F) shall be as follows: Each State regulatory 
     authority shall conduct an investigation and issue a decision 
     whether or not it is appropriate for electric utilities to 
     provide and install time-based meters and communications 
     devices for each of their customers which enable such 
     customers to participate in time-based pricing rate schedules 
     and other demand response programs.''.
       (c) Federal Assistance on Demand Response.--Section 132(a) 
     of the Public Utility Regulatory Policies Act of 1978 (16 
     U.S.C. 2642(a)) is amended by striking ``and'' at the end of 
     paragraph (3), striking the period at the end of paragraph 
     (4) and inserting ``; and'', and by adding the following at 
     the end thereof:
       ``(5) technologies, techniques, and rate-making methods 
     related to advanced metering and communications and the use 
     of these technologies, techniques and methods in demand 
     response programs.''.
       (d) Federal Guidance.--Section 132 of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended 
     by adding the following at the end thereof:
       ``(d) Demand Response.--The Secretary shall be responsible 
     for--
       ``(1) educating consumers on the availability, advantages, 
     and benefits of advanced metering and communications 
     technologies, including the funding of demonstration or pilot 
     projects;
       ``(2) working with States, utilities, other energy 
     providers and advanced metering and communications experts to 
     identify and address barriers to the adoption of demand 
     response programs; and
       ``(3) not later than 180 days after the date of enactment 
     of the Energy Policy Act of 2005, providing Congress with a 
     report that identifies and quantifies the national benefits 
     of demand response and makes a recommendation on achieving 
     specific levels of such benefits by January 1, 2007.''.
       (e) Demand Response and Regional Coordination.--
       (1) In general.--It is the policy of the United States to 
     encourage States to coordinate, on a regional basis, State 
     energy policies to provide reliable and affordable demand 
     response services to the public.
       (2) Technical assistance.--The Secretary shall provide 
     technical assistance to States and regional organizations 
     formed by 2 or more States to assist them in--
       (A) identifying the areas with the greatest demand response 
     potential;
       (B) identifying and resolving problems in transmission and 
     distribution networks, including through the use of demand 
     response;
       (C) developing plans and programs to use demand response to 
     respond to peak demand or emergency needs; and
       (D) identifying specific measures consumers can take to 
     participate in these demand response programs.
       (3) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall prepare and 
     publish an annual report, by appropriate region, that 
     assesses demand response resources, including those available 
     from all consumer classes, and which identifies and reviews--
       (A) saturation and penetration rate of advanced meters and 
     communications technologies, devices and systems;
       (B) existing demand response programs and time-based rate 
     programs;
       (C) the annual resource contribution of demand resources;
       (D) the potential for demand response as a quantifiable, 
     reliable resource for regional planning purposes;

[[Page 12473]]

       (E) steps taken to ensure that, in regional transmission 
     planning and operations, demand resources are provided 
     equitable treatment as a quantifiable, reliable resource 
     relative to the resource obligations of any load-serving 
     entity, transmission provider, or transmitting party; and
       (F) regulatory barriers to improved customer participation 
     in demand response, peak reduction, and critical period 
     pricing programs.
       (f) Federal Encouragement of Demand Response Devices.--It 
     is the policy of the United States that time-based pricing 
     and other forms of demand response, whereby electricity 
     customers are provided with electricity price signals and the 
     ability to benefit by responding to them, shall be 
     encouraged, and the deployment of such technology and devices 
     that enable electricity customers to participate in such 
     pricing and demand response systems shall be facilitated, and 
     unnecessary barriers to demand response participation in 
     energy, capacity, and ancillary service markets shall be 
     eliminated. It is further the policy of the United States 
     that the benefits of such demand response that accrue to 
     those not deploying such technology and devices, but who are 
     part of the same regional electricity entity, shall be 
     recognized.
       (g) Time Limitations.--Section 112(b) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is 
     amended by adding at the end the following:
       ``(4)(A) Not later than 1 year after the enactment of this 
     paragraph, each State regulatory authority (with respect to 
     each electric utility for which it has ratemaking authority) 
     and each nonregulated electric utility shall commence the 
     consideration referred to in section 111, or set a hearing 
     date for such consideration, with respect to the standard 
     established by paragraph (14) of section 111(d).
       ``(B) Not later than 2 years after the date of the 
     enactment of this paragraph, each State regulatory authority 
     (with respect to each electric utility for which it has 
     ratemaking authority), and each nonregulated electric 
     utility, shall complete the consideration, and shall make the 
     determination, referred to in section 111 with respect to the 
     standard established by paragraph (14) of section 111(d).''.
       (h) Failure To Comply.--Section 112(c) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) 
     is amended by adding at the end the following:

     ``In the case of the standard established by paragraph (14) 
     of section 111(d), the reference contained in this subsection 
     to the date of enactment of this Act shall be deemed to be a 
     reference to the date of enactment of such paragraph (14).''.
       (i) Prior State Actions Regarding Smart Metering 
     Standards.--
       (1) In general.--Section 112 of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended 
     by adding at the end the following:
       ``(e) Prior State Actions.--Subsections (b) and (c) of this 
     section shall not apply to the standard established by 
     paragraph (14) of section 111(d) in the case of any electric 
     utility in a State if, before the enactment of this 
     subsection--
       ``(1) the State has implemented for such utility the 
     standard concerned (or a comparable standard);
       ``(2) the State regulatory authority for such State or 
     relevant nonregulated electric utility has conducted a 
     proceeding to consider implementation of the standard 
     concerned (or a comparable standard) for such utility within 
     the previous 3 years; or
       ``(3) the State legislature has voted on the implementation 
     of such standard (or a comparable standard) for such utility 
     within the previous 3 years.''.
       (2) Cross reference.--Section 124 of such Act (16 U.S.C. 
     2634) is amended by adding the following at the end thereof: 
     ``In the case of the standard established by paragraph (14) 
     of section 111(d), the reference contained in this subsection 
     to the date of enactment of this Act shall be deemed to be a 
     reference to the date of enactment of such paragraph (14).''.

     SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE 
                   AND SALE REQUIREMENTS.

       (a) Termination of Mandatory Purchase and Sale 
     Requirements.--Section 210 of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding 
     at the end the following:
       ``(m) Termination of Mandatory Purchase and Sale 
     Requirements.--
       ``(1) Obligation to purchase.--After the date of enactment 
     of this subsection, no electric utility shall be required to 
     enter into a new contract or obligation to purchase electric 
     energy from a qualifying cogeneration facility or a 
     qualifying small power production facility under this section 
     if the Commission finds that the qualifying cogeneration 
     facility or qualifying small power production facility has 
     nondiscriminatory access to--
       ``(A)(i) independently administered, auction-based day 
     ahead and real time wholesale markets for the sale of 
     electric energy; and (ii) wholesale markets for long-term 
     sales of capacity and electric energy; or
       ``(B)(i) transmission and interconnection services that are 
     provided by a Commission-approved regional transmission 
     entity and administered pursuant to an open access 
     transmission tariff that affords nondiscriminatory treatment 
     to all customers; and (ii) competitive wholesale markets that 
     provide a meaningful opportunity to sell capacity, including 
     long-term and short-term sales, and electric energy, 
     including long-term, short-term and real-time sales, to 
     buyers other than the utility to which the qualifying 
     facility is interconnected. In determining whether a 
     meaningful opportunity to sell exists, the Commission shall 
     consider, among other factors, evidence of transactions 
     within the relevant market; or
       ``(C) wholesale markets for the sale of capacity and 
     electric energy that are, at a minimum, of comparable 
     competitive quality as markets described in subparagraphs (A) 
     and (B).
       ``(2) Revised purchase and sale obligation for new 
     facilities.--(A) After the date of enactment of this 
     subsection, no electric utility shall be required pursuant to 
     this section to enter into a new contract or obligation to 
     purchase from or sell electric energy to a facility that is 
     not an existing qualifying cogeneration facility unless the 
     facility meets the criteria for qualifying cogeneration 
     facilities established by the Commission pursuant to the 
     rulemaking required by subsection (n).
       ``(B) For the purposes of this paragraph, the term 
     `existing qualifying cogeneration facility' means a facility 
     that--
       ``(i) was a qualifying cogeneration facility on the date of 
     enactment of subsection (m); or
       ``(ii) had filed with the Commission a notice of self-
     certification, self recertification or an application for 
     Commission certification under 18 C.F.R. 292.207 prior to the 
     date on which the Commission issues the final rule required 
     by subsection (n).
       ``(3) Commission review.--Any electric utility may file an 
     application with the Commission for relief from the mandatory 
     purchase obligation pursuant to this subsection on a service 
     territory-wide basis. Such application shall set forth the 
     factual basis upon which relief is requested and describe why 
     the conditions set forth in subparagraphs (A), (B) or (C) of 
     paragraph (1) of this subsection have been met. After notice, 
     including sufficient notice to potentially affected 
     qualifying cogeneration facilities and qualifying small power 
     production facilities, and an opportunity for comment, the 
     Commission shall make a final determination within 90 days of 
     such application regarding whether the conditions set forth 
     in subparagraphs (A), (B) or (C) of paragraph (1) have been 
     met.
       ``(4) Reinstatement of obligation to purchase.--At any time 
     after the Commission makes a finding under paragraph (3) 
     relieving an electric utility of its obligation to purchase 
     electric energy, a qualifying cogeneration facility, a 
     qualifying small power production facility, a State agency, 
     or any other affected person may apply to the Commission for 
     an order reinstating the electric utility's obligation to 
     purchase electric energy under this section. Such application 
     shall set forth the factual basis upon which the application 
     is based and describe why the conditions set forth in 
     subparagraphs (A), (B) or (C) of paragraph (1) of this 
     subsection are no longer met. After notice, including 
     sufficient notice to potentially affected utilities, and 
     opportunity for comment, the Commission shall issue an order 
     within 90 days of such application reinstating the electric 
     utility's obligation to purchase electric energy under this 
     section if the Commission finds that the conditions set forth 
     in subparagraphs (A), (B) or (C) of paragraph (1) which 
     relieved the obligation to purchase, are no longer met.
       ``(5) Obligation to sell.--After the date of enactment of 
     this subsection, no electric utility shall be required to 
     enter into a new contract or obligation to sell electric 
     energy to a qualifying cogeneration facility or a qualifying 
     small power production facility under this section if the 
     Commission finds that--
       ``(A) competing retail electric suppliers are willing and 
     able to sell and deliver electric energy to the qualifying 
     cogeneration facility or qualifying small power production 
     facility; and
       ``(B) the electric utility is not required by State law to 
     sell electric energy in its service territory.
       ``(6) No effect on existing rights and remedies.--Nothing 
     in this subsection affects the rights or remedies of any 
     party under any contract or obligation, in effect or pending 
     approval before the appropriate State regulatory authority or 
     non-regulated electric utility on the date of enactment of 
     this subsection, to purchase electric energy or capacity from 
     or to sell electric energy or capacity to a qualifying 
     cogeneration facility or qualifying small power production 
     facility under this Act (including the right to recover costs 
     of purchasing electric energy or capacity).
       ``(7) Recovery of costs.--(A) The Commission shall issue 
     and enforce such regulations as are necessary to ensure that 
     an electric utility that purchases electric energy or 
     capacity from a qualifying cogeneration facility or 
     qualifying small power production facility in accordance with 
     any legally enforceable obligation entered into or imposed

[[Page 12474]]

     under this section recovers all prudently incurred costs 
     associated with the purchase.
       ``(B) A regulation under subparagraph (A) shall be 
     enforceable in accordance with the provisions of law 
     applicable to enforcement of regulations under the Federal 
     Power Act (16 U.S.C. 791a et seq.).
       ``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not 
     later than 180 days after the date of enactment of this 
     section, the Commission shall issue a rule revising the 
     criteria in 18 C.F.R. 292.205 for new qualifying cogeneration 
     facilities seeking to sell electric energy pursuant to 
     section 210 of this Act to ensure--
       ``(i) that the thermal energy output of a new qualifying 
     cogeneration facility is used in a productive and beneficial 
     manner;
       ``(ii) the electrical, thermal, and chemical output of the 
     cogeneration facility is used fundamentally for industrial, 
     commercial, or institutional purposes and is not intended 
     fundamentally for sale to an electric utility, taking into 
     account technological, efficiency, economic, and variable 
     thermal energy requirements, as well as State laws applicable 
     to sales of electric energy from a qualifying facility to its 
     host facility; and
       ``(iii) continuing progress in the development of efficient 
     electric energy generating technology.
       ``(B) The rule issued pursuant to section (n)(1)(A) shall 
     be applicable only to facilities that seek to sell electric 
     energy pursuant to section 210 of this Act. For all other 
     purposes, except as specifically provided in section 
     (m)(2)(A), qualifying facility status shall be determined in 
     accordance with the rules and regulations of this Act.
       ``(2) Notwithstanding rule revisions under paragraph (1), 
     the Commission's criteria for qualifying cogeneration 
     facilities in effect prior to the date on which the 
     Commission issues the final rule required by paragraph (1) 
     shall continue to apply to any cogeneration facility that--
       ``(A) was a qualifying cogeneration facility on the date of 
     enactment of subsection (m), or
       ``(B) had filed with the Commission a notice of self-
     certification, self-recertification or an application for 
     Commission certification under 18 C.F.R. 292.207 prior to the 
     date on which the Commission issues the final rule required 
     by paragraph (1).''.
       (b) Elimination of Ownership Limitations.--
       (1) Qualifying small power production facility.--Section 
     3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is 
     amended to read as follows:
       ``(C) `qualifying small power production facility' means a 
     small power production facility that the Commission 
     determines, by rule, meets such requirements (including 
     requirements respecting fuel use, fuel efficiency, and 
     reliability) as the Commission may, by rule, prescribe;''.
       (2) Qualifying cogeneration facility.--Section 3(18)(B) of 
     the Federal Power Act (16 U.S.C. 796(18)(B)) is amended to 
     read as follows:
       ``(B) `qualifying cogeneration facility' means a 
     cogeneration facility that the Commission determines, by 
     rule, meets such requirements (including requirements 
     respecting minimum size, fuel use, and fuel efficiency) as 
     the Commission may, by rule, prescribe;''.

     SEC. 1254. INTERCONNECTION.

       (a) Adoption of Standards.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     (as amended by section 1252(a)) is amended by adding at the 
     end the following:
       ``(15) Interconnection.--(A) In this paragraph, the term 
     `interconnection service' means service to an electric 
     consumer by which an on-site generating facility on the 
     premises of the electric consumer is connected to the local 
     distribution facilities.
       ``(B)(i) Each electric utility shall make available, on 
     request, interconnection service to any electric consumer 
     that the electric utility serves.
       ``(ii) Interconnection services shall be made available 
     under clause (i) based on the standards developed by the 
     Institute of Electrical and Electronics Engineers, entitled 
     ``IEEE Standard 1547 for Interconnecting Distributed 
     Resources with Electric Power Systems'' (or successor 
     standards).
       ``(C)(i) Electric utilities shall establish agreements and 
     procedures providing that the interconnection services made 
     available under subparagraph (B) promote current best 
     practices of interconnection for distributed generation, 
     including practices stipulated in model codes adopted by 
     associations of State regulatory agencies.
       ``(ii) Any agreements and procedures established under 
     clause (i) shall be just and reasonable and not unduly 
     discriminatory or preferential.''.
       (b) Compliance.--
       (1) Time limitations.--Section 112(b) of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as 
     amended by section 1252(g)) is amended by adding at the end 
     the following:
       ``(5)(A) Not later than 1 year after the date of enactment 
     of this paragraph, each State regulatory authority (with 
     respect to each electric utility for which the State 
     regulatory authority has ratemaking authority) and each 
     nonregulated utility shall, with respect to the standard 
     established by section 111(d)(15)--
       ``(i) commence the consideration under section 111(a); or
       ``(ii) set a hearing date for the consideration.
       ``(B) Not later than 2 years after the date of enactment of 
     this paragraph, each State regulatory authority (with respect 
     to each electric utility for which the State regulatory 
     authority has ratemaking authority) and each nonregulated 
     electric utility shall, with respect to the standard 
     established by section 111(d)(15), complete the consideration 
     and make the determination under section 111(a).''.
       (2) Failure to comply.--Section 112(c) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) 
     (as amended by section 1252(h)) is amended by adding at the 
     end the following: ``In the case of the standard established 
     by paragraph (15), the reference contained in this subsection 
     to the date of enactment of this Act shall be considered to 
     be a reference to the date of enactment of paragraph (15).''.
       (3) Prior state actions.--
       (A) In general.--Section 112(e) of the Public Utility 
     Regulatory Policies Act of 1978 (as added by section 
     1252(i)(1)) is amended by striking ``paragraph 14'' and 
     inserting ``paragraph (14) or (15)''.
       (B) Conforming amendment.--Section 124 of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) (as 
     amended by section 1252(i)(2)) is amended by adding at the 
     end the following: ``In the case of each standard established 
     by section 111(d)(15), the reference contained in this 
     section to the date of enactment of the Act shall be 
     considered to be a reference to the date of enactment of 
     paragraph (15).''.

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

     SEC. 1261. MARKET TRANSPARENCY RULES.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1241) is amended by adding at the end 
     the following:

     ``SEC. 221. MARKET TRANSPARENCY RULES.

       ``(a) In General.--The Commission may issue such rules as 
     the Commission considers to be appropriate to establish an 
     electronic information system to provide the Commission and 
     the public with access to such information as is necessary or 
     appropriate to facilitate price transparency and 
     participation in markets for the sale in interstate commerce 
     of electric energy at wholesale.
       ``(b) Information To Be Made Available.--(1) The system 
     under subsection (a) shall provide, on a timely basis, 
     information about the availability and market price of 
     wholesale electric energy and transmission services to the 
     Commission, State commissions, buyers and sellers of 
     wholesale electric energy, users of transmission services, 
     and the public.
       ``(2) In determining the information to be made available 
     under the system and the time at which to make such 
     information available, the Commission shall seek to ensure 
     that consumers and competitive markets are protected from the 
     adverse effects of potential collusion or other 
     anticompetitive behaviors that can be facilitated by untimely 
     public disclosure of transaction-specific information.
       ``(c) Authority To Obtain Information.--The Commission 
     shall have authority to obtain information described in 
     subsections (a) and (b) from any electric utility or 
     transmitting utility (including any entity described in 
     section 201(f)).
       ``(d) Exemptions.--The rules of the Commission, if adopted, 
     shall exempt from disclosure information that the Commission 
     determines would, if disclosed--
       ``(1) be detrimental to the operation of an effective 
     market; or
       ``(2) jeopardize system security.
       ``(e) Commodity Futures Trading Commission.--(1) This 
     section shall not affect the exclusive jurisdiction of the 
     Commodity Futures Trading Commission with respect to 
     accounts, agreements, contracts, or transactions in 
     commodities under the Commodity Exchange Act (7 U.S.C. 1 et 
     seq.).
       ``(2) Any request for information to a designated contract 
     market, registered derivatives transaction execution 
     facility, board of trade, exchange, or market involving an 
     account, agreement, contract, or transaction in a commodity 
     (including natural gas, electricity and other energy 
     commodities) within the exclusive jurisdiction of the 
     Commodity Futures Trading Commission shall be directed to the 
     Commodity Futures Trading Commission, which shall cooperate 
     in responding to any information request by the Commission.
       ``(f) Savings Provision.--In exercising authority under 
     this section, the Commission shall not--
       ``(1) compete with, or displace from the market place, any 
     price publisher (including any electronic price publisher); 
     or
       ``(2) regulate price publishers (including any electronic 
     price publisher) or impose any requirements on the 
     publication of information by price publishers (including any 
     electronic price publisher).
       ``(g) ERCOT.--This section shall not apply to a transaction 
     for the purchase or sale of wholesale electric energy or 
     transmission services within the area described in section 
     212(k)(2)(A).''.

[[Page 12475]]



     SEC. 1262. FALSE STATEMENTS.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1261) is amended by adding at the end 
     the following:

     ``SEC. 222. PROHIBITION ON FILING FALSE INFORMATION.

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

     SEC. 1263. MARKET MANIPULATION.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 1262) is amended by adding at the end 
     the following:

     ``SEC. 223. PROHIBITION OF ENERGY MARKET MANIPULATION.

       ``It shall be unlawful for any entity (including an entity 
     described in section 201(f)), directly or indirectly, to use 
     or employ, in connection with the purchase or sale of 
     electric energy or the purchase or sale of transmission 
     services subject to the jurisdiction of the Commission, any 
     manipulative or deceptive device or contrivance (as those 
     terms are used in section 10(b) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78j(b))), in contravention of such 
     rules and regulations as the Commission may prescribe as 
     necessary or appropriate in the public interest or for the 
     protection of electric ratepayers.''.

     SEC. 1264. ENFORCEMENT.

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

     SEC. 1265. REFUND EFFECTIVE DATE.

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

     SEC. 1266. REFUND AUTHORITY.

       Section 206 of the Federal Power Act (16 U.S.C. 824e) is 
     amended by adding at the end the following:
       ``(e)(1) In this subsection:
       ``(A) The term `short-term sale' means an agreement for the 
     sale of electric energy at wholesale in interstate commerce 
     that is for a period of 48 hours or less.
       ``(B) The term `applicable Commission rule' means a 
     Commission rule applicable to sales at wholesale by public 
     utilities that the Commission determines after notice and 
     comment should also be applicable to entities subject to this 
     subsection.
       ``(2) If an entity described in section 201(f) voluntarily 
     makes a short-term sale of electric energy through an 
     organized market in which the rates for the sale are 
     established by Commission-approved tariff (rather than by 
     contract) and the sale violates the terms of the tariff or 
     applicable Commission rules in effect at the time of the 
     sale, the entity shall be subject to the refund authority of 
     the Commission under this section with respect to the 
     violation.
       ``(3) This section shall not apply to--
       ``(A) any entity that sells in total (including affiliates 
     of the entity) less than 8,000,000 megawatt hours of 
     electricity per year; or
       ``(B) any electric cooperative.
       ``(4)(A) The Commission shall have refund authority under 
     paragraph (2) with respect to a voluntary short-term sale of 
     electric energy by the Bonneville Power Administration only 
     if the sale is at an unjust and unreasonable rate.
       ``(B) The Commission may order a refund under subparagraph 
     (A) only for short-term sales made by the Bonneville Power 
     Administration at rates that are higher than the highest just 
     and reasonable rate charged by any other entity for a short-
     term sale of electric energy in the same geographic market 
     for the same, or most nearly comparable, period as the sale 
     by the Bonneville Power Administration.
       ``(5) In the case of any Federal power marketing agency or 
     the Tennessee Valley Authority, the Commission shall not 
     assert or exercise any regulatory authority or power under 
     paragraph (2) other than the ordering of refunds to achieve a 
     just and reasonable rate.''.

     SEC. 1267. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.

       (a) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (2) State regulatory authority.--The term ``State 
     regulatory authority'' has the meaning given the term in 
     section 3 of the Federal Power Act (16 U.S.C. 796).
       (3) Electric consumer; electric utility.--The terms 
     ``electric consumer'' and ``electric utility'' have the 
     meanings given those terms in section 3 of the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2602).
       (b) Privacy.--The Commission may issue rules protecting the 
     privacy of electric consumers from the disclosure of consumer 
     information obtained in connection with the sale or delivery 
     of electric energy to electric consumers.
       (c) Slamming.--The Commission may issue rules prohibiting 
     the change of selection of an electric utility except with 
     the informed consent of the electric consumer or if approved 
     by the appropriate State regulatory authority.
       (d) Cramming.--The Commission may issue rules prohibiting 
     the sale of goods and services to an electric consumer unless 
     expressly authorized by law or the electric consumer.
       (e) Rulemaking.--The Commission shall proceed in accordance 
     with section 553 of title 5, United States Code, when 
     prescribing a rule under this section.
       (f) State Authority.--If the Commission determines that the 
     regulations of a State provide equivalent or greater 
     protection than the protection provided under this section, 
     the regulations of the State shall apply in that State in 
     lieu of the regulations issued by the Commission under this 
     section.

     SEC. 1268. OFFICE OF CONSUMER ADVOCACY.

       (a) Definitions.--In this section:
       (1) Energy customer.--The term ``energy customer'' means a 
     residential customer or a small commercial customer that 
     receives products or services from a public utility or 
     natural gas company under the jurisdiction of the Commission.
       (2) Natural gas company.--The term ``natural gas company'' 
     has the meaning given the term in section 2 of the Natural 
     Gas Act (15 U.S.C. 717a), as modified by section 601(a) of 
     the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).
       (3) Office.--The term ``Office'' means the Office of 
     Consumer Advocacy established by subsection (b)(1).
       (4) Public utility.--The term ``public utility'' has the 
     meaning given the term in section 201(e) of the Federal Power 
     Act (16 U.S.C. 824(e)).
       (5) Small commercial customer.--The term ``small commercial 
     customer'' means a commercial customer that has a peak demand 
     of not more than 1,000 kilowatts per hour.
       (b) Office.--
       (1) Establishment.--There is established within the 
     Department the Office of Consumer Advocacy.
       (2) Duties.--The Office may represent the interests of 
     energy customers on matters concerning rates or service of 
     public utilities and natural gas companies under the 
     jurisdiction of the Commission--
       (A) at hearings of the Commission;
       (B) in civil actions brought in connection with any 
     function carried out by the Commission, except as provided in 
     section 518 of title 28, United States Code; and
       (C) at hearings or proceedings of other Federal regulatory 
     agencies and commissions.

     SEC. 1269. AUTHORITY OF COURT TO PROHIBIT PERSONS FROM 
                   SERVING AS OFFICERS, DIRECTORS, AND ENERGY 
                   TRADERS.

       Section 314 of the Federal Power Act (16 U.S.C. 825m) is 
     amended by adding at the end the following:
       ``(d) In any proceedings under subsection (a), the court 
     may prohibit, conditionally or unconditionally, and 
     permanently or for

[[Page 12476]]

     such period of time as the court determines, any person who 
     is engaged or has engaged in practices constituting a 
     violation of section 222 (and related rules and regulations) 
     from--
       ``(1) acting as an officer or director of an electric 
     utility; or
       ``(2) engaging in the business of purchasing or selling--
       ``(A) electric energy; or
       ``(B) transmission services subject to the jurisdiction of 
     the Commission.''.

     SEC. 1270. RELIEF FOR EXTRAORDINARY VIOLATIONS.

       (a) Application.--This section applies to any contract 
     entered into the Western Interconnection prior to June 20, 
     2001, with a seller of wholesale electricity that the 
     Commission has--
       (1) found to have manipulated the electricity market 
     resulting in unjust and unreasonable rates; and
       (2) revoked the seller's authority to sell any electricity 
     at market-based rates.
       (b) Relief.--Notwithstanding section 222 of the Federal 
     Power Act (as added by section 1262), any provision of title 
     11, United States Code, or any other provision of law, in the 
     case of a contract described in subsection (a), the 
     Commission shall have exclusive jurisdiction under the 
     Federal Power Act (16 U.S.C. 791a et seq.) to determine 
     whether a requirement to make termination payments for power 
     not delivered by the seller, or any successor in interest of 
     the seller, is unlawful on the grounds that it is unjust and 
     unreasonable.
       (c) Applicability.--This section applies to any proceeding 
     pending on the date of enactment of this section involving a 
     seller described in subsection (a) in which there is not a 
     final, nonappealable order by the Commission or any other 
     jurisdiction determining the respective rights of the seller.

             Subtitle G--Repeal of PUHCA and Merger Reform

     SEC. 1271. SHORT TITLE.

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

     SEC. 1272. DEFINITIONS.

       For purposes of this subtitle:
       (1) Affiliate.--The term ``affiliate'' of a company means 
     any company, 5 percent or more of the outstanding voting 
     securities of which are owned, controlled, or held with power 
     to vote, directly or indirectly, by such company.
       (2) Associate company.--The term ``associate company'' of a 
     company means any company in the same holding company system 
     with such company.
       (3) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (4) Company.--The term ``company'' means a corporation, 
     partnership, association, joint stock company, business 
     trust, or any organized group of persons, whether 
     incorporated or not, or a receiver, trustee, or other 
     liquidating agent of any of the foregoing.
       (5) Electric utility company.--The term ``electric utility 
     company'' means any company that owns or operates facilities 
     used for the generation, transmission, or distribution of 
     electric energy for sale.
       (6) Exempt wholesale generator and foreign utility 
     company.--The terms ``exempt wholesale generator'' and 
     ``foreign utility company'' have the same meanings as in 
     sections 32 and 33, respectively, of the Public Utility 
     Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as 
     those sections existed on the day before the effective date 
     of this subtitle.
       (7) Gas utility company.--The term ``gas utility company'' 
     means any company that owns or operates facilities used for 
     distribution at retail (other than the distribution only in 
     enclosed portable containers or distribution to tenants or 
     employees of the company operating such facilities for their 
     own use and not for resale) of natural or manufactured gas 
     for heat, light, or power.
       (8) Holding company.--The term ``holding company'' means--
       (A) any company that directly or indirectly owns, controls, 
     or holds, with power to vote, 10 percent or more of the 
     outstanding voting securities of a public-utility company or 
     of a holding company of any public-utility company; and
       (B) any person, determined by the Commission, after notice 
     and opportunity for hearing, to exercise directly or 
     indirectly (either alone or pursuant to an arrangement or 
     understanding with 1 or more persons) such a controlling 
     influence over the management or policies of any public-
     utility company or holding company as to make it necessary or 
     appropriate for the rate protection of utility customers with 
     respect to rates that such person be subject to the 
     obligations, duties, and liabilities imposed by this subtitle 
     upon holding companies.
       (9) Holding company system.--The term ``holding company 
     system'' means a holding company, together with its 
     subsidiary companies.
       (10) Jurisdictional rates.--The term ``jurisdictional 
     rates'' means rates accepted or established by the Commission 
     for the transmission of electric energy in interstate 
     commerce, the sale of electric energy at wholesale in 
     interstate commerce, the transportation of natural gas in 
     interstate commerce, and the sale in interstate commerce of 
     natural gas for resale for ultimate public consumption for 
     domestic, commercial, industrial, or any other use.
       (11) Natural gas company.--The term ``natural gas company'' 
     means a person engaged in the transportation of natural gas 
     in interstate commerce or the sale of such gas in interstate 
     commerce for resale.
       (12) Person.--The term ``person'' means an individual or 
     company.
       (13) Public utility.--The term ``public utility'' means any 
     person who owns or operates facilities used for transmission 
     of electric energy in interstate commerce or sales of 
     electric energy at wholesale in interstate commerce.
       (14) Public-utility company.--The term ``public-utility 
     company'' means an electric utility company or a gas utility 
     company.
       (15) State commission.--The term ``State commission'' means 
     any commission, board, agency, or officer, by whatever name 
     designated, of a State, municipality, or other political 
     subdivision of a State that, under the laws of such State, 
     has jurisdiction to regulate public utility companies.
       (16) Subsidiary company.--The term ``subsidiary company'' 
     of a holding company means--
       (A) any company, 10 percent or more of the outstanding 
     voting securities of which are directly or indirectly owned, 
     controlled, or held with power to vote, by such holding 
     company; and
       (B) any person, the management or policies of which the 
     Commission, after notice and opportunity for hearing, 
     determines to be subject to a controlling influence, directly 
     or indirectly, by such holding company (either alone or 
     pursuant to an arrangement or understanding with 1 or more 
     other persons) so as to make it necessary for the rate 
     protection of utility customers with respect to rates that 
     such person be subject to the obligations, duties, and 
     liabilities imposed by this subtitle upon subsidiary 
     companies of holding companies.
       (17) Voting security.--The term ``voting security'' means 
     any security presently entitling the owner or holder thereof 
     to vote in the direction or management of the affairs of a 
     company.

     SEC. 1273. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT 
                   OF 1935.

       The Public Utility Holding Company Act of 1935 (15 U.S.C. 
     79 et seq.) is repealed.

     SEC. 1274. FEDERAL ACCESS TO BOOKS AND RECORDS.

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

     SEC. 1275. STATE ACCESS TO BOOKS AND RECORDS.

       (a) In General.--Upon the written request of a State 
     commission having jurisdiction to regulate a public-utility 
     company in a holding company system, the holding company or 
     any associate company or affiliate thereof, other than such 
     public-utility company, wherever located, shall produce for 
     inspection books, accounts, memoranda, and other records 
     that--
       (1) have been identified in reasonable detail in a 
     proceeding before the State commission;
       (2) the State commission determines are relevant to costs 
     incurred by such public-utility company; and
       (3) are necessary for the effective discharge of the 
     responsibilities of the State commission with respect to such 
     proceeding.
       (b) Limitation.--Subsection (a) does not apply to any 
     person that is a holding company solely by reason of 
     ownership of 1 or more qualifying facilities under the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 
     seq.).

[[Page 12477]]

       (c) Confidentiality of Information.--The production of 
     books, accounts, memoranda, and other records under 
     subsection (a) shall be subject to such terms and conditions 
     as may be necessary and appropriate to safeguard against 
     unwarranted disclosure to the public of any trade secrets or 
     sensitive commercial information.
       (d) Effect on State Law.--Nothing in this section shall 
     preempt applicable State law concerning the provision of 
     books, accounts, memoranda, and other records, or in any way 
     limit the rights of any State to obtain books, accounts, 
     memoranda, and other records under any other Federal law, 
     contract, or otherwise.
       (e) Court Jurisdiction.--Any United States district court 
     located in the State in which the State commission referred 
     to in subsection (a) is located shall have jurisdiction to 
     enforce compliance with this section.

     SEC. 1276. EXEMPTION AUTHORITY.

       (a) Rulemaking.--Not later than 90 days after the effective 
     date of this subtitle, the Commission shall issue a final 
     rule to exempt from the requirements of section 1274 
     (relating to Federal access to books and records) any person 
     that is a holding company, solely with respect to 1 or more--
       (1) qualifying facilities under the Public Utility 
     Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
       (2) exempt wholesale generators; or
       (3) foreign utility companies.
       (b) Other Authority.--The Commission shall exempt a person 
     or transaction from the requirements of section 1274 
     (relating to Federal access to books and records) if, upon 
     application or upon the motion of the Commission--
       (1) the Commission finds that the books, accounts, 
     memoranda, and other records of any person are not relevant 
     to the jurisdictional rates of a public utility or natural 
     gas company; or
       (2) the Commission finds that any class of transactions is 
     not relevant to the jurisdictional rates of a public utility 
     or natural gas company.

     SEC. 1277. AFFILIATE TRANSACTIONS.

       (a) Commission Authority Unaffected.--Nothing in this 
     subtitle shall limit the authority of the Commission under 
     the Federal Power Act (16 U.S.C. 791a et seq.) to require 
     that jurisdictional rates are just and reasonable, including 
     the ability to deny or approve the pass through of costs, the 
     prevention of cross-subsidization, and the issuance of such 
     rules and regulations as are necessary or appropriate for the 
     protection of utility consumers.
       (b) Recovery of Costs.--Nothing in this subtitle shall 
     preclude the Commission or a State commission from exercising 
     its jurisdiction under otherwise applicable law to determine 
     whether a public-utility company, public utility, or natural 
     gas company may recover in rates any costs of an activity 
     performed by an associate company, or any costs of goods or 
     services acquired by such public-utility company from an 
     associate company.

     SEC. 1278. APPLICABILITY.

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

     SEC. 1279. EFFECT ON OTHER REGULATIONS.

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

     SEC. 1280. ENFORCEMENT.

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

     SEC. 1281. SAVINGS PROVISIONS.

       (a) In General.--Nothing in this subtitle, or otherwise in 
     the Public Utility Holding Company Act of 1935, or rules, 
     regulations, or orders thereunder, prohibits a person from 
     engaging in or continuing to engage in activities or 
     transactions in which it is legally engaged or authorized to 
     engage on the date of enactment of this Act, if that person 
     continues to comply with the terms (other than an expiration 
     date or termination date) of any such authorization, whether 
     by rule or by order.
       (b) Effect on Other Commission Authority.--Nothing in this 
     subtitle limits the authority of the Commission under the 
     Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas 
     Act (15 U.S.C. 717 et seq.).

     SEC. 1282. IMPLEMENTATION.

       Not later than 4 months after the date of enactment of this 
     subtitle, the Commission shall--
       (1) promulgate such regulations as may be necessary or 
     appropriate to implement this subtitle (other than section 
     1275, relating to State access to books and records); and
       (2) submit to Congress detailed recommendations on 
     technical and conforming amendments to Federal law necessary 
     to carry out this subtitle and the amendments made by this 
     subtitle.

     SEC. 1283. TRANSFER OF RESOURCES.

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

     SEC. 1284. EFFECTIVE DATE.

       (a) In General.--Except for section 1282 (relating to 
     implementation), this subtitle shall take effect 6 months 
     after the date of enactment of this subtitle.
       (b) Compliance With Certain Rules.--If the Commission 
     approves and makes effective any final rulemaking modifying 
     the standards of conduct governing entities that own, 
     operate, or control facilities for transmission of 
     electricity in interstate commerce or transportation of 
     natural gas in interstate commerce prior to the effective 
     date of this subtitle, any action taken by a public-utility 
     company or utility holding company to comply with the 
     requirements of such rulemaking shall not subject such 
     public-utility company or utility holding company to any 
     regulatory requirement applicable to a holding company under 
     the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 
     et seq.).

     SEC. 1285. SERVICE ALLOCATION.

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

     SEC. 1286. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 1287. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

       (a) Conflict of Jurisdiction.--Section 318 of the Federal 
     Power Act (16 U.S.C. 825q) is repealed.
       (b) Definitions.--(1) Section 201(g)(5) of the Federal 
     Power Act (16 U.S.C. 824(g)(5)) is amended by striking 
     ``1935'' and inserting ``2005''.
       (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) 
     is amended by striking ``1935'' and inserting ``2005''.

     SEC. 1288. MERGER REVIEW REFORM.

       (a) In General.--Section 203(a) of the Federal Power Act 
     (16 U.S.C. 824b(a)) is amended to read as follows:
       ``(a)(1) No public utility shall, without first having 
     secured an order of the Commission authorizing it to do so--
       ``(A) sell, lease, or otherwise dispose of the whole of its 
     facilities subject to the jurisdiction of the Commission, or 
     any part thereof of a value in excess of $10,000,000;
       ``(B) merge or consolidate, directly or indirectly, such 
     facilities or any part thereof with those of any other 
     person, by any means whatsoever;
       ``(C) purchase, acquire, or take any security with a value 
     in excess of $10,000,000 of any other public utility; or
       ``(D) purchase, lease, or otherwise acquire an existing 
     generation facility--
       ``(i) that has a value in excess of $10,000,000; and
       ``(ii) that is used for interstate wholesale sales and over 
     which the Commission has jurisdiction for ratemaking 
     purposes.
       ``(2) No holding company in a holding company system that 
     includes a transmitting utility or an electric utility shall 
     purchase, acquire, or take any security with a value in 
     excess of $10,000,000 of, or, by any means whatsoever, 
     directly or indirectly, merge or consolidate with, a 
     transmitting utility, an electric utility company, or a gas 
     utility company, or a holding company in a holding

[[Page 12478]]

     company system that includes a transmitting utility, an 
     electric utility company, or a gas utility company with a 
     value in excess of $10,000,000 without first having secured 
     an order of the Commission authorizing it to do so.
       ``(3) Upon receipt of an application for such approval the 
     Commission shall give reasonable notice in writing to the 
     Governor and State commission of each of the States in which 
     the physical property affected, or any part thereof, is 
     situated, and to such other persons as it may deem advisable.
       ``(4) After notice and opportunity for hearing, the 
     Commission shall approve the proposed disposition, 
     consolidation, acquisition, or change in control, if it finds 
     that the proposed transaction--
       ``(A) will be consistent with the public interest, taking 
     into account the effect of the transaction on competition in 
     the electricity markets, electric rates, and effective 
     regulation; and
       ``(B) shall not result in cross-subsidization of a non-
     utility associate company or the pledge or encumbrance of 
     utility assets for the benefit of an associate company, 
     unless the Commission determines that the cross-
     subsidization, pledge, or encumbrance would not be harmful.
       ``(5) The Commission shall, by rule, adopt procedures for 
     the expeditious consideration of applications for the 
     approval of dispositions, consolidations, or acquisitions, 
     under this section. Such rules shall identify classes of 
     transactions, or specify criteria for transactions, that 
     normally meet the standards established in paragraph (4). The 
     Commission shall provide expedited review for such 
     transactions. The Commission shall grant or deny any other 
     application for approval of a transaction not later than 180 
     days after the application is filed. If the Commission does 
     not act within 180 days, such application shall be deemed 
     granted unless the Commission finds, based on good cause, 
     that further consideration is required to determine whether 
     the proposed transaction meets the standards of paragraph (4) 
     and issues an order tolling the time for acting on the 
     application for not more than 180 days, at the end of which 
     additional period the Commission shall grant or deny the 
     application.
       ``(6) For purposes of this subsection, the terms `associate 
     company', `holding company', and `holding company system' 
     have the meaning given those terms in the Public Utility 
     Holding Company Act of 2005.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect 6 months after the date of enactment of 
     this Act.

                        Subtitle H--Definitions

     SEC. 1291. DEFINITIONS.

       (a) Commission.--In this title, the term ``Commission'' 
     means the Federal Energy Regulatory Commission.
       (b) Amendment.--Section 3 of the Federal Power Act (16 
     U.S.C. 796) is amended--
       (1) by striking paragraphs (22) and (23) and inserting the 
     following:
       ``(22) Electric utility.--(A) The term `electric utility' 
     means a person or Federal or State agency (including an 
     entity described in section 201(f)) that sells electric 
     energy.
       ``(B) The term `electric utility' includes the Tennessee 
     Valley Authority and each Federal power marketing 
     administration.
       ``(23) Transmitting utility.--The term `transmitting 
     utility' means an entity (including an entity described in 
     section 201(f)) that owns, operates, or controls facilities 
     used for the transmission of electric energy--
       ``(A) in interstate commerce;
       ``(B) for the sale of electric energy at wholesale.''; and
       (2) by adding at the end the following:
       ``(26) Electric cooperative.--The term `electric 
     cooperative' means a cooperatively owned electric utility.
       ``(27) RTO.--The term `Regional Transmission Organization' 
     or `RTO' means an entity of sufficient regional scope 
     approved by the Commission--
       ``(A) to exercise operational or functional control of 
     facilities used for the transmission of electric energy in 
     interstate commerce; and
       ``(B) to ensure nondiscriminatory access to the facilities.
       ``(28) ISO.--The term `Independent System Operator' or 
     `ISO' means an entity approved by the Commission--
       ``(A) to exercise operational or functional control of 
     facilities used for the transmission of electric energy in 
     interstate commerce; and
       ``(B) to ensure nondiscriminatory access to the facilities.
       ``(29) Transmission organization.--The term `Transmission 
     Organization' means a Regional Transmission Organization, 
     Independent System Operator, independent transmission 
     provider, or other transmission organization finally approved 
     by the Commission for the operation of transmission 
     facilities.''.
       (c) Applicability.--Section 201(f) of the Federal Power Act 
     (16 U.S.C. 824(f)) is amended by striking ``political 
     subdivision of a state,'' and inserting ``political 
     subdivision of a State, an electric cooperative that receives 
     financing under the Rural Electrification Act of 1936 (7 
     U.S.C. 901 et seq.) or that sells less than 4,000,000 
     megawatt hours of electricity per year,''.

            Subtitle I--Technical and Conforming Amendments

     SEC. 1295. CONFORMING AMENDMENTS.

       (a) Section 201 of the Federal Power Act (16 U.S.C. 824) is 
     amended--
       (1) in subsection (b)(2)--
       (A) in the first sentence--
       (i) by striking ``The'' and inserting ``Notwithstanding 
     section 201(f), the''; and
       (ii) by striking ``210, 211, and 212'' and inserting 
     ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 
     219, 220, 221, 222, and 223''; and
       (B) in the second sentence--
       (i) by inserting ``or rule'' after ``any order''; and
       (ii) by striking ``210 or 211'' and inserting ``203(a)(2), 
     206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, 
     221, 222, or 223''; and
       (2) in subsection (e), by striking ``210, 211, or 212'' and 
     inserting ``206(e), 206(f), 210, 211, 211A, 212, 215, 216, 
     217, 218, 219, 220, 221, 222, or 223''.
       (b) Section 206 of the Federal Power Act (16 U.S.C. 824e) 
     is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``hearing had'' and inserting ``hearing held''; and
       (2) in the seventh sentence of subsection (b), by striking 
     ``the public utility to make''.
       (c) Section 211 of the Federal Power Act (16 U.S.C. 824j) 
     is amended--
       (1) in subsection (c)--
       (A) by striking ``(2)'';
       (B) by striking ``(A)'' and inserting ``(1)''
       (C) by striking ``(B)'' and inserting ``(2)''; and
       (D) by striking ``termination of modification'' and 
     inserting ``termination or modification''; and
       (2) in the second sentence of subsection (d)(1), by 
     striking ``electric utility'' the second place it appears and 
     inserting ``transmitting utility''.
       (d) Section 315(c) of the Federal Power Act (16 U.S.C. 
     825n(c)) is amended by striking ``subsection'' and inserting 
     ``section''.

                          TITLE XIII--STUDIES

     SEC. 1301. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL 
                   BUILDINGS.

       (a) In General.--The Architect of the Capitol, building on 
     the Master Plan Study for the Capitol complex completed in 
     July 2000, shall commission a study to evaluate the energy 
     infrastructure of the Capitol complex to determine how to 
     augment the infrastructure to become more energy efficient--
       (1) by using unconventional and renewable energy resources; 
     and
       (2) in a manner that would enable the Capitol complex to 
     have reliable utility service in the event of power 
     fluctuations, shortages, or outages.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Architect of the Capitol to carry 
     out this section $2,000,000 for each of fiscal years 2006 
     through 2010.

     SEC. 1302. INCREASED HYDROELECTRIC GENERATION AT EXISTING 
                   FEDERAL FACILITIES.

       (a) Study.--
       (1) In general.--The Secretary and the Secretary of the 
     Interior, in consultation with the Secretary of the Army, 
     shall conduct a study of the potential for increasing 
     electric power production capability, in accordance with 
     applicable law, at federally owned or operated water 
     regulation, storage, and conveyance facilities.
       (2) Contents.--The study under paragraph (1) shall include 
     an identification and detailed description of each facility 
     that is capable, with or without modification, of producing 
     additional hydroelectric power, including an estimate of the 
     potential of the facility to generate hydroelectric power.
       (b) Report.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretaries shall submit to the 
     Committee on Energy and the Committee on Commerce, Resources, 
     Transportation and Infrastructure of the House of 
     Representatives, and the Committee on Energy and Natural 
     Resources of the Senate, a report describing the findings, 
     conclusions, and recommendations of the study under 
     subsection (a).
       (2) Inclusions.--The report under paragraph (1) shall 
     include--
       (A) each identification, description, and estimate under 
     subsection (a)(2);
       (B) a description of any activity that is conducted or 
     under consideration, or that could be considered, to produce 
     additional hydroelectric power at an identified facility;
       (C) a summary of actions taken by the Secretaries before 
     the date on which the study was completed to produce 
     additional hydroelectric power at an identified facility;
       (D) a calculation of--
       (i) the costs of installing, upgrading, modifying, or 
     taking any other action relating to, equipment to produce 
     additional hydroelectric power at an identified facility; and
       (ii) the level of involvement of Federal power customers in 
     the determination of the costs;
       (E) a description of any benefit to be achieved by an 
     installation, upgrade, modification, or other action under 
     subparagraph (D), including a quantified estimate of any 
     additional energy or capacity produced at an identified 
     facility;

[[Page 12479]]

       (F) a description of any action that is planned, is being 
     carried out on the date on which the report is submitted, or 
     might reasonably be considered to increase hydroelectric 
     power production by replacing turbine runners, upgrading or 
     rewinding generators, or constructing pumped storage 
     facilities;
       (G) a description of the effect of increased hydroelectric 
     power production on--
       (i) irrigation;
       (ii) fish;
       (iii) wildlife;
       (iv) Indian land;
       (v) river health;
       (vi) water quality;
       (vii) navigation;
       (viii) recreation;
       (ix) fishing; and
       (x) flood control; and
       (H) any additional recommendations of the Secretaries to 
     increase hydroelectric power production, and reduce costs and 
     improve efficiency, in accordance with applicable law, at 
     federally owned or operated water regulation, storage, and 
     conveyance facilities.

     SEC. 1303. ALASKA NATURAL GAS PIPELINE.

       Not later than 180 days after the date of enactment of this 
     Act, and every 180 days thereafter until the Alaska natural 
     gas pipeline commences operation, the Federal Energy 
     Regulatory Commission shall submit to Congress a report 
     describing--
       (1) the progress made in licensing and constructing the 
     pipeline; and
       (2) any issue impeding that progress.

     SEC. 1304. RENEWABLE ENERGY ON FEDERAL LAND.

       (a) National Academy of Sciences Study.--Not later than 90 
     days after the date of enactment of this Act, the Secretary 
     of the Interior shall enter into a contract with the National 
     Academy of Sciences under which the National Academy of 
     Sciences shall--
       (1) study the potential of developing wind, solar, and 
     ocean energy resources (including tidal, wave, and thermal 
     energy) on Federal land available for those uses under 
     current law and the outer Continental Shelf;
       (2) assess any Federal law (including regulations) relating 
     to the development of those resources that is in existence on 
     the date of enactment of this Act; and
       (3) recommend statutory and regulatory mechanisms for 
     developing those resources.
       (b) Submission to Congress.--Not later than 2 years after 
     the date of enactment of this Act, the Secretary of the 
     Interior shall submit to Congress the results of the study 
     under subsection (a).

     SEC. 1305. COAL BED METHANE STUDY.

       (a) Study.--
       (1) In general.--The Secretary of the Interior shall enter 
     into an arrangement under which the National Academy of 
     Sciences shall conduct a study on the effect of coalbed 
     natural gas production on surface and ground water resources, 
     including ground water aquifiers, in the States of Montana, 
     Wyoming, Colorado, New Mexico, North Dakota, and Utah.
       (2) Matters to be addressed.--The study shall address the 
     effectiveness of--
       (A) the management of coal bed methane produced water;
       (B) the use of best management practices; and
       (C) various production techniques for coal bed methane 
     natural gas in minimizing impacts on water resources.
       (b) Data Analysis.--The study shall analyze available 
     hydrologic, geologic and water quality data, along with--
       (1) production techniques, produced water management 
     techniques, best management practices, and other factors that 
     can mitigate effects of coal bed methane development;
       (2) the costs associated with mitigation techniques;
       (3) effects on surface or ground water resources, including 
     drinking water, associated with surface or subsurface 
     disposal of waters produced during extraction of coal bed 
     methane; and
       (4) any other significant effects on surface or ground 
     water resources associated with production of coal-bed 
     methane.
       (c) Recommendations.--The study shall analyze the 
     effectiveness of current mitigation practices of coal bed 
     methane produced water handling in relation to existing 
     Federal and State laws and regulations, and make 
     recommendations as to changes, if any, to Federal law 
     necessary to address adverse impacts to surface or ground 
     water resources associated with coal bed methane development.
       (d) Completion of Study.--The National Academy of Sciences 
     shall submit the findings and recommendations of the study to 
     the Secretary of the Interior within 12 months after the date 
     of enactment of this Act, and shall upon completion make the 
     results of the study available to the public.
       (e) Report to Congress.--The Secretary of the Interior 
     shall report to the Congress within 6 months after receiving 
     the results of the study on--
       (1) the findings and recommendations of the study;
       (2) the Secretary's agreement or disagreement with each of 
     its findings and recommendations; and
       (3) any recommended changes in funding to address the 
     effects of coal bed methane production on surface and ground 
     water resources.

     SEC. 1306. BACKUP FUEL CAPABILITY STUDY.

       (a) Study.--
       (1) In general.--The Secretary shall conduct a study of the 
     effect of obtaining and maintaining liquid and other fuel 
     backup capability at--
       (A) gas-fired power generation facilities; and
       (B) other gas-fired industrial facilities.
       (2) Contents.--The study under paragraph (1) shall 
     address--
       (A) the costs and benefits of adding a different fuel 
     capability to a power gas-fired power generating or 
     industrial facility, taking into consideration regional 
     differences;
       (B) methods of the Federal Government and State governments 
     to encourage gas-fired power generators and industries to 
     develop the capability to power the facilities using a backup 
     fuel;
       (C) the effect on the supply and cost of natural gas of--
       (i) a balanced portfolio of fuel choices in power 
     generation and industrial applications; and
       (ii) State regulations that permit agencies in the State to 
     carry out policies that encourage the use of other backup 
     fuels in gas-fired power generation; and
       (D) changes required in the Clean Air Act (42 U.S.C. 7401 
     et seq.) to allow natural gas generators to add clean backup 
     fuel capabilities.
       (b) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall submit to 
     Congress a report on the results of the study under 
     subsection (a), including recommendations regarding future 
     activity of the Federal Government relating to backup fuel 
     capability.

     SEC. 1307. INDIAN LAND RIGHTS-OF-WAY.

       (a) Study.--
       (1) In general.--The Secretary and the Secretary of the 
     Interior (referred to in this section as the ``Secretaries'') 
     shall jointly conduct a study of issues regarding energy 
     rights-of-way on tribal land (as defined in section 2601 of 
     the Energy Policy Act of 1992 (as amended by section 503)) 
     (referred to in this section as ``tribal land'').
       (2) Consultation.--In conducting the study under paragraph 
     (1), the Secretaries shall consult with Indian tribes, the 
     energy industry, appropriate governmental entities, and 
     affected businesses and consumers.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretaries shall submit to 
     Congress a report on the findings of the study, including--
       (1) an analysis of historic rates of compensation paid for 
     energy rights-of-way on tribal land;
       (2) recommendations for appropriate standards and 
     procedures for determining fair and appropriate compensation 
     to Indian tribes for grants, expansions, and renewals of 
     energy rights-of-way on tribal land;
       (3) an assessment of the tribal self-determination and 
     sovereignty interests implicated by applications for the 
     grant, expansion, or renewal of energy rights-of-way on 
     tribal land; and
       (4) an analysis of relevant national energy transportation 
     policies relating to grants, expansions, and renewals of 
     energy rights-of-way on tribal land.

     SEC. 1308. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall complete a study 
     to determine the effect that titles III, IV, and V of the 
     Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.) have had 
     during the period beginning on the date of enactment of those 
     titles and ending on the date on which the study begins on--
       (1) the development of alternative fueled vehicle 
     technology;
       (2) the availability of that technology in the market; and
       (3) the cost of alternative fueled vehicles.
       (b) Topics.--In conducting the study under subsection (a), 
     the Secretary shall identify--
       (1) the number of alternative fueled vehicles acquired by 
     fleets or covered persons required to acquire alternative 
     fueled vehicles;
       (2) the quantity, by type, of alternative fuel used in 
     alternative fueled vehicles acquired by fleets or covered 
     persons;
       (3) the quantity of petroleum displaced by the use of 
     alternative fuels in alternative fueled vehicles acquired by 
     fleets or covered persons;
       (4) the direct and indirect costs of compliance with 
     requirements under titles III, IV, and V of the Energy Policy 
     Act of 1992 (42 U.S.C. 13211 et seq.), including--
       (A) vehicle acquisition requirements imposed on fleets or 
     covered persons;
       (B) administrative and recordkeeping expenses;
       (C) fuel and fuel infrastructure costs;
       (D) associated training and employee expenses; and
       (E) any other factors or expenses the Secretary determines 
     to be necessary to compile reliable estimates of the overall 
     costs and benefits of complying with programs under those 
     titles for fleets, covered persons, and the national economy;
       (5) the existence of obstacles preventing compliance with 
     vehicle acquisition requirements and increased use of 
     alternative fuel

[[Page 12480]]

     in alternative fueled vehicles acquired by fleets or covered 
     persons; and
       (6) the projected impact of amendments to the Energy Policy 
     Act of 1992 made by this Act.
       (c) Report.--On the date on which the study under 
     subsection (a) is completed, the Secretary shall submit to 
     Congress a report that--
       (1) describes the results of the study; and
       (2) includes any recommendations of the Secretary for 
     legislative or administrative changes concerning the 
     alternative fueled vehicle requirements under titles III, IV 
     and V of the Energy Policy Act of 1992 (42 U.S.C. 13211 et 
     seq.).

     SEC. 1309. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE 
                   OF FUEL FOR AUTOMOBILES.

       (a) Study.--
       (1) In general.--Not later than 30 days after the date of 
     the enactment of this Act, the Administrator of the National 
     Highway Traffic Safety Administration shall conduct a study 
     of the feasibility and effects of reducing, by a significant 
     percentage, by model year 2012, the amount of fuel consumed 
     by automobiles.
       (2) Inclusions.--The study under paragraph (1) shall 
     include an examination of--
       (A) the Federal policy 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 the manufacturer produces 
     (including recommendations of alternatives to that policy);
       (B) methods by which automobile manufacturers could 
     contribute toward achieving the reduction described in 
     paragraph (1);
       (C) the potential of using fuel cell technology in motor 
     vehicles to determine the extent to which fuel cell 
     technology contributes to achieving the reduction described 
     in paragraph (1); and
       (D) the effects of the reduction described in paragraph (1) 
     on--
       (i) gasoline supplies;
       (ii) the automobile industry, including sales of 
     automobiles manufactured in the United States;
       (iii) motor vehicle safety;
       (iv) air quality; and
       (v) the consumer price for light duty trucks typically 
     purchased for agricultural purposes, including by providing 
     estimates for price differences for the years 2008 through 
     2012, comparing--

       (I) light duty truck fuel economy if no legislative changes 
     are made to average fuel economy standards; to
       (II) light duty truck fuel economy under the reduction 
     described in paragraph (1).

       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report on the findings, conclusions, and 
     recommendations of the study under subsection (a).

     SEC. 1310. HYBRID DISTRIBUTED POWER SYSTEMS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall develop, and submit to Congress a 
     report on, a strategy for a comprehensive research, 
     development, demonstration, and commercial application 
     program to develop hybrid distributed power systems that 
     combine--
       (1) 1 or more renewable electric power generation 
     technologies of 10 megawatts or less located near the site of 
     electric energy use; and
       (2) nonintermittent electric power generation technologies 
     suitable for use in a distributed power system.

     SEC. 1311. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

       Not later than 2 years after the date of enactment of this 
     section, the Secretary shall transmit to Congress a report 
     that--
       (1) identifies any policies or procedures of a contractor 
     operating a National Laboratory or single-purpose research 
     facility that create disincentives to the temporary or 
     permanent transfer of scientific and technical personnel 
     among the contractor-operated National Laboratories or 
     contractor-operated single-purpose research facilities; and
       (2) provides recommendations for improving interlaboratory 
     exchange of scientific and technical personnel.

     SEC. 1312. NATIONAL ACADEMY OF SCIENCES REPORT.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary shall enter into an arrangement with the 
     National Academy of Sciences for the Academy to--
       (1) conduct a study on--
       (A) the obstacles to accelerating the research, 
     development, demonstration, and commercial application cycle 
     for energy technology; and
       (B) the adequacy of Department policies and procedures for, 
     and oversight of, technology transfer-related disputes 
     between contractors of the Department and the private sector; 
     and
       (2) report to Congress on recommendations developed as a 
     result of the study.

     SEC. 1313. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM 
                   EVALUATION METHODOLOGIES.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall enter into 
     appropriate arrangements with the National Academy of 
     Sciences to investigate and report on the scientific and 
     technical merits of any evaluation methodology currently in 
     use or proposed for use in relation to the scientific and 
     technical programs of the Department by the Secretary or 
     other Federal official.
       (b) Report.--Not later than 180 days after receiving the 
     report of the National Academy of Sciences, the Secretary 
     shall submit to Congress a report, along with any other views 
     or plans of the Secretary with respect to the future use of 
     the evaluation methodology.

     SEC. 1314. TRANSMISSION SYSTEM MONITORING STUDY.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary and the Chairperson of 
     the Federal Energy Regulatory Commission shall conduct a 
     study, and submit to Congress a report, on any action the 
     Secretary determines to be necessary to establish a system 
     that makes available to all transmission system owners and 
     regional transmission organizations in the Eastern and 
     Western Interconnections real-time information on the 
     functional status of all transmission lines within those 
     Interconnections.
       (b) Inclusions.--The study under this section shall 
     include--
       (1) an assessment of any technical method of implementing 
     the information transmission system described in subsection 
     (a); and
       (2) an identification of any action the Secretary and the 
     Chairperson shall carry out to implement the information 
     transmission system.

     SEC. 1315. INTERAGENCY REVIEW OF COMPETITION IN THE WHOLESALE 
                   AND RETAIL MARKETS FOR ELECTRIC ENERGY.

       (a) Task Force.--There is established an inter-agency task 
     force, to be known as the ``Electric Energy Market 
     Competition Task Force'' (referred to in this section as the 
     ``task force''), consisting of 5 members--
       (1) 1 of whom shall be an employee of the Department of 
     Justice, to be appointed by the Attorney General of the 
     United States;
       (2) 1 of whom shall be an employee of the Federal Energy 
     Regulatory Commission, to be appointed by the Chairperson of 
     that Commission;
       (3) 1 of whom shall be an employee of the Federal Trade 
     Commission, to be appointed by the Chairperson of that 
     Commission;
       (4) 1 of whom shall be an employee of the Department, to be 
     appointed by the Secretary; and
       (5) 1 of whom shall be an employee of the Rural Utilities 
     Service, to be appointed by the Secretary of Agriculture.
       (b) Study and Report.--
       (1) Study.--The task force shall conduct a study and 
     analysis of competition within the wholesale and retail 
     market for electric energy in the United States.
       (2) Report.--
       (A) Final report.--Not later than 1 year after the date of 
     enactment of this Act, the task force shall submit to 
     Congress a final report on the findings of the task force 
     under paragraph (1).
       (B) Public comment.--Not later than the date that is 60 
     days before a final report is submitted to Congress under 
     subparagraph (A), the task force shall--
       (i) publish in the Federal Register a draft of the report; 
     and
       (ii) provide an opportunity for public comment on the 
     report.
       (c) Consultation.--In conducting the study under subsection 
     (b), the task force shall consult with and solicit comments 
     from any advisory entity of the task force, the States, 
     representatives of the electric power industry, and the 
     public.

     SEC. 1316. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

       (a) Definition of Economic Dispatch.--In this section, the 
     term ``economic dispatch'' means the operation of a 
     generation facility to produce energy at the lowest cost in 
     order to reliably serve consumers, taking into consideration 
     any operational limit of a generation or transmission 
     facility.
       (b) Study.--The Secretary, in coordination and consultation 
     with the States, shall conduct a study of--
       (1) the procedures currently used by electric utilities to 
     carry out economic dispatch;
       (2) possible revisions to those procedures to improve the 
     ability of nonutility generation resources to offer the 
     output of the resources for sale for inclusion in economic 
     dispatch; and
       (3) the potential benefits to residential, commercial, and 
     industrial electricity consumers, nationally and in each 
     State, of revising economic dispatch procedures to improve 
     the ability of nonutility generation resources to offer the 
     output of the resources for inclusion in economic dispatch.
       (c) Report to Congress and the States.--Not later than 90 
     days after the date of enactment of this Act, and annually 
     thereafter, the Secretary shall submit to Congress and each 
     State a report describing the results of the study under 
     subsection (b), including recommendations of the Secretary 
     for such legislative and administrative actions as the 
     Secretary determines to be appropriate.

     SEC. 1317. STUDY OF RAPID ELECTRICAL GRID RESTORATION.

       (a) Study.--
       (1) In general.--The Secretary shall conduct a study of the 
     benefits of using mobile

[[Page 12481]]

     transformers and mobile substations to rapidly restore 
     electrical service to areas subjected to blackouts as a 
     result of--
       (A) equipment failure;
       (B) natural disasters;
       (C) acts of terrorism; or
       (D) war.
       (2) Contents.--The study under paragraph (1) shall contain 
     an analysis of--
       (A) the feasibility of using mobile transformers and mobile 
     substations to reduce dependence on foreign entities for key 
     elements of the electrical grid system of the United States;
       (B) the feasibility of using mobile transformers and mobile 
     substations to rapidly restore electrical power to--
       (i) military bases;
       (ii) the Federal Government;
       (iii) communications industries;
       (iv) first responders; and
       (v) other critical infrastructures, as determined by the 
     Secretary;
       (C) the quantity of mobile transformers and mobile 
     substations necessary--
       (i) to eliminate dependence on foreign sources for key 
     electrical grid components in the United States;
       (ii) to rapidly deploy technology to fully restore full 
     electrical service to prioritized Governmental functions; and
       (iii) to identify manufacturing sources in existence on the 
     date of enactment of this Act that have previously 
     manufactured specialized mobile transformer or mobile 
     substation products for Federal agencies.
       (b) Report.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     President and Congress a report on the study under subsection 
     (a).
       (2) Inclusion.--The report shall include a description of 
     the results of the analysis under subsection (a)(2).

     SEC. 1318. STUDY OF DISTRIBUTED GENERATION.

       (a) Study.--
       (1) In general.--
       (A) Potential benefits.--The Secretary, in consultation 
     with the Federal Power Commission, shall conduct a study of 
     the potential benefits of cogeneration and small power 
     production.
       (B) Recipients.--The benefits described in subparagraph (A) 
     include benefits that are received directly or indirectly 
     by--
       (i) an electricity distribution or transmission service 
     provider;
       (ii) other customers served by an electricity distribution 
     or transmission service provider; and
       (iii) the general public in the area served by the public 
     utility in which the cogenerator or small power producer is 
     located.
       (2) Inclusions.--The study shall include an analysis of--
       (A) the potential benefits of--
       (i) increased system reliability;
       (ii) improved power quality;
       (iii) the provision of ancillary services;
       (iv) reduction of peak power requirements through onsite 
     generation;
       (v) the provision of reactive power or volt-ampere 
     reactives;
       (vi) an emergency supply of power;
       (vii) offsets to investments in generation, transmission, 
     or distribution facilities that would otherwise be recovered 
     through rates;
       (viii) diminished land use effects and right-of-way 
     acquisition costs; and
       (ix) reducing the vulnerability of a system to terrorism; 
     and
       (B) any rate-related issue that may impede or otherwise 
     discourage the expansion of cogeneration and small power 
     production facilities, including a review of whether rates, 
     rules, or other requirements imposed on the facilities are 
     comparable to rates imposed on customers of the same class 
     that do not have cogeneration or small power production.
       (3) Valuation of benefits.--In carrying out the study, the 
     Secretary shall determine an appropriate method of valuing 
     potential benefits under varying circumstances for individual 
     cogeneration or small power production units.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall--
       (1) complete the study;
       (2) provide an opportunity for public comment on the 
     results of the study; and
       (3) submit to the President and Congress a report 
     describing--
       (A) the results of the study; and
       (B) information relating to the public comments received 
     under paragraph (2).
       (c) Publication.--After submission of the report under 
     subsection (b) to the President and Congress, the Secretary 
     shall publish the report.

     SEC. 1319. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS 
                   STORAGE.

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

     SEC. 1320. NATURAL GAS SUPPLY SHORTAGE REPORT.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on natural gas supplies and demand.
       (b) Purpose.--The purpose of the report under subsection 
     (a) is to develop recommendations for achieving a balance 
     between natural gas supply and demand in order to--
       (1) provide residential consumers with natural gas at 
     reasonable and stable prices;
       (2) accommodate long-term maintenance and growth of 
     domestic natural gas-dependent industrial, manufacturing, and 
     commercial enterprises;
       (3) facilitate the attainment of national ambient air 
     quality standards under the Clean Air Act (43 U.S.C. 7401 et 
     seq.);
       (4) achieve continued progress in reducing the emissions 
     associated with electric power generation; and
       (5) support the development of the preliminary phases of 
     hydrogen-based energy technologies.
       (c) Comprehensive Analysis.--The report shall include a 
     comprehensive analysis of, for the period beginning on 
     January 1, 2004, and ending on December 31, 2015, natural gas 
     supply and demand in the United States, including--
       (1) estimates of annual domestic demand for natural gas, 
     taking into consideration the effect of Federal policies and 
     actions that are likely to increase or decrease the demand 
     for natural gas;
       (2) projections of annual natural gas supplies, from 
     domestic and foreign sources, under Federal policies in 
     existence on the date of enactment of this Act;
       (3) an identification of estimated natural gas supplies 
     that are not available under those Federal policies;
       (4) scenarios for decreasing natural gas demand and 
     increasing natural gas supplies that compare the relative 
     economic and environmental impacts of Federal policies that--
       (A) encourage or require the use of natural gas to meet air 
     quality, carbon dioxide emission reduction, or energy 
     security goals;
       (B) encourage or require the use of energy sources other 
     than natural gas, including coal, nuclear, and renewable 
     sources;
       (C) support technologies to develop alternative sources of 
     natural gas and synthetic gas, including coal gasification 
     technologies;
       (D) encourage or require the use of energy conservation and 
     demand side management practices; and
       (E) affect access to domestic natural gas supplies; and
       (5) recommendations for Federal actions to achieve the 
     purposes described in subsection (b), including 
     recommendations that--
       (A) encourage or require the use of energy sources other 
     than natural gas, including coal, nuclear, and renewable 
     sources;
       (B) encourage or require the use of energy conservation or 
     demand side management practices;
       (C) support technologies for the development of alternative 
     sources of natural gas and synthetic gas, including coal 
     gasification technologies; and
       (D) would improve access to domestic natural gas supplies.
       (d) Consultation.--In preparing the report under subsection 
     (a), the Secretary shall consult with--
       (1) experts in natural gas supply and demand; and
       (2) representatives of--
       (A) State and local governments;
       (B) tribal organizations; and
       (C) consumer and other organizations.
       (e) Hearings.--In preparing the report under subsection 
     (a), the Secretary may hold public hearings and provide other 
     opportunities for public comment, as the Secretary considers 
     appropriate.

     SEC. 1321. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND 
                   DEVELOPMENT PRACTICES.

       (a) Review.--
       (1) In general.--In consultation with affected private 
     surface owners, representatives of the oil and gas industry, 
     and other interested parties, the Secretary of the Interior 
     shall undertake a review of the current

[[Page 12482]]

     policies and practices with respect to management of Federal 
     subsurface oil and gas development activities and the effects 
     of those activities on the privately owned surface.
       (2) Inclusions.--The review shall include--
       (A) a comparison of the rights and responsibilities under 
     existing mineral and land law for the owner of a Federal 
     mineral lease, the private surface owners and the Department;
       (B) a comparison of the surface owner consent provisions in 
     section 714 of the Surface Mining Control and Reclamation Act 
     of 1977 (30 U.S.C. 1304) concerning surface mining of Federal 
     coal deposits and the surface owner consent provisions for 
     oil and gas development, including coalbed methane 
     production;
       (C) an analysis and comparison of existing State laws 
     addressing surface owner protection on split estates in which 
     the surface estate is privately held and the subsurface 
     estate is federally owned, or other split estate situations; 
     and
       (D) recommendations for administrative or legislative 
     action necessary to facilitate reasonable access for Federal 
     oil and gas activities while addressing surface owner 
     concerns and minimizing impacts to private surface.
       (b) Report.--The Secretary of the Interior shall report the 
     results of such review to Congress not later than 180 days 
     after the date of enactment of this Act.

     SEC. 1322. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT 
                   CONFLICTS IN THE POWDER RIVER BASIN.

       (a) Review.--The Secretary of the Interior shall review 
     Federal and State laws in existence on the date of enactment 
     of this Act in order to resolve any conflict relating to the 
     Powder River Basin in Wyoming and Montana between--
       (1) the development of Federal coal; and
       (2) the development of Federal and non-Federal coalbed 
     methane.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of the Interior shall 
     submit to Congress a report that--
       (1) describes methods of resolving a conflict described in 
     subsection (a); and
       (2) identifies a method preferred by the Secretary of the 
     Interior, including proposed legislative language, if any, 
     required to implement the method.

     SEC. 1323. STUDY OF ENERGY EFFICIENCY STANDARDS.

       (a) Study.--The Secretary shall enter into a contract with 
     the National Academy of Sciences under which the National 
     Academy of Sciences, not later than 1 year after the date of 
     enactment of this Act, shall conduct a study of whether the 
     goals of energy efficiency standards are best served--
       (1) by measuring energy consumed, and efficiency 
     improvements, at the site of energy consumption; or
       (2) through the full fuel cycle, beginning at the source of 
     energy production.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the study under subsection (a).

     SEC. 1324. TELECOMMUTING STUDY.

       (a) Definitions.--In this section:
       (1) Federal employee.--The term ``Federal employee'' has 
     the meaning given the term ``employee'' in section 2105 of 
     title 5, United States Code.
       (2) Telecommuting.--The term `telecommuting'' means the 
     performance of work functions using communications 
     technologies, which eliminates or substantially reduces the 
     need to commute to and from traditional worksites.
       (b) Study Required.--The Secretary, in consultation with 
     the Chairperson of the Federal Energy Regulatory Commission, 
     the Director of the Office of Personnel Management, the 
     Administrator of General Services, and the Administrator of 
     National Telecommunications and Information Administration, 
     shall conduct a study of the energy conservation implications 
     of the widespread adoption of telecommuting by Federal 
     employees in the United States.
       (c) Inclusions.--The study under subsection (b) shall 
     include an analysis of the following subjects in relation to 
     the energy saving potential of telecommuting by Federal 
     employees:
       (1) Reductions of energy use and energy costs in commuting 
     and regular office heating, cooling, and other operations.
       (2) Other energy reductions accomplished by telecommuting.
       (3) Existing regulatory barriers that hamper telecommuting, 
     including barriers to broadband telecommunications services 
     deployment.
       (4) Collateral benefits to the environment, family life, 
     and other values.
       (d) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     President and Congress a report on the study under subsection 
     (b), including a description of the results of the analysis 
     of each of subject referred to in subsection (c).

     SEC. 1325. OIL BYPASS FILTRATION TECHNOLOGY.

       The Secretary and the Administrator of the Environmental 
     Protection Agency shall--
       (1) conduct a joint study of the benefits of oil bypass 
     filtration technology in--
       (A) reducing demand for oil; and
       (B) protecting the environment;
       (2) evaluate various products and manufacturers with 
     respect to oil bypass filtration technology; and
       (3) after conducting the evaluation under paragraph (2), 
     examine the feasibility of using oil bypass filtration 
     technology in Federal motor vehicle fleets.

     SEC. 1326. TOTAL INTEGRATED THERMAL SYSTEMS.

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

     SEC. 1327. UNIVERSITY COLLABORATION.

       (a) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report that examines the feasibility of promoting 
     collaborations between large institutions of higher education 
     and small institutions of higher education (as determined by 
     the Secretary) through grants, contracts, and cooperative 
     agreements made by the Secretary for energy projects.
       (b) Consideration.--In preparing the report under 
     subsection (a), the Secretary shall take into consideration 
     the feasibility of providing incentives for including small 
     institutions of higher education (including institutions that 
     primarily serve minorities), as determined by the Secretary, 
     in--
       (1) energy research grants;
       (2) contracts; and
       (3) cooperative agreements.

     SEC. 1328. HYDROGEN PARTICIPATION STUDY.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall submit to Congress a report 
     evaluating methodologies to ensure the widest participation 
     practicable in setting goals and milestones under the 
     hydrogen program of the Department, including international 
     participants.

           TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

     SEC. 1401. DEFINITIONS.

       In this title:
       (1) Commercial technology.--
       (A) In general.--The term ``commercial technology'' means a 
     technology in general use in the commercial marketplace.
       (B) Inclusions.--The term ``commercial technology'' does 
     not include a technology solely by use of the technology in a 
     demonstration project funded by the Department.
       (2) Cost.--The term ``cost'' has the meaning given the term 
     ``cost of a loan guarantee'' within the meaning of section 
     502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5)(C)).
       (3) Eligible project.--The term ``eligible project'' means 
     a project described in section 1403.
       (4) Guarantee.--
       (A) In general.--The term ``guarantee'' has the meaning 
     given the term ``loan guarantee'' in section 502 of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
       (B) Inclusion.--The term ``guarantee'' includes a loan 
     guarantee commitment (as defined in section 502 of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
       (5) Obligation.--The term ``obligation'' means the loan or 
     other debt obligation that is guaranteed under this section.

     SEC. 1402. TERMS AND CONDITIONS.

       (a) In General.--Except for division C of Public Law 108-
     324, the Secretary shall make guarantees under this or any 
     other Act for projects on such terms and conditions as the 
     Secretary determines, after consultation with the Secretary 
     of the Treasury, only in accordance with this section.
       (b) Specific Appropriation or Contribution.--No guarantee 
     shall be made unless--
       (1) an appropriation for the cost has been made; or
       (2) the Secretary has received from the borrower a payment 
     in full for the cost of the obligation and deposited the 
     payment into the Treasury.
       (c) Amount.--Unless otherwise provided by law, a guarantee 
     by the Secretary shall not exceed an amount equal to 80 
     percent of the project cost of the facility that is the 
     subject of the guarantee, as estimated at the time at which 
     the guarantee is issued.
       (d) Repayment.--
       (1) In general.--No guarantee shall be made unless the 
     Secretary determines that there is reasonable prospect of 
     repayment of the principal and interest on the obligation by 
     the borrower.
       (2) Amount.--No guarantee shall be made unless the 
     Secretary determines that the amount of the obligation (when 
     combined with amounts available to the borrower from other 
     sources) will be sufficient to carry out the project.
       (3) Subordination.--The obligation shall be subject to the 
     condition that the obligation is not subordinate to other 
     financing.
       (e) Interest Rate.--An obligation shall bear interest at a 
     rate that does not exceed a level that the Secretary 
     determines appropriate, taking into account the prevailing 
     rate of interest in the private sector for similar loans and 
     risks.

[[Page 12483]]

       (f) Term.--The term of an obligation shall require full 
     repayment over a period not to exceed the lesser of--
       (1) 30 years; or
       (2) 90 percent of the projected useful life of the physical 
     asset to be financed by the obligation (as determined by the 
     Secretary).
       (g) Defaults.--
       (1) Payment by secretary.--
       (A) In general.--If a borrower defaults on the obligation 
     (as defined in regulations promulgated by the Secretary and 
     specified in the guarantee contract), the holder of the 
     guarantee shall have the right to demand payment of the 
     unpaid amount from the Secretary.
       (B) Payment required.--Within such period as may be 
     specified in the guarantee or related agreements, the 
     Secretary shall pay to the holder of the guarantee the unpaid 
     interest on, and unpaid principal of the obligation as to 
     which the borrower has defaulted, unless the Secretary finds 
     that there was no default by the borrower in the payment of 
     interest or principal or that the default has been remedied.
       (C) Forbearance.--Nothing in this subsection precludes any 
     forbearance by the holder of the obligation for the benefit 
     of the borrower which may be agreed upon by the parties to 
     the obligation and approved by the Secretary.
       (2) Subrogation.--
       (A) In general.--If the Secretary makes a payment under 
     paragraph (1), the Secretary shall be subrogated to the 
     rights of the recipient of the payment as specified in the 
     guarantee or related agreements including, where appropriate, 
     the authority (notwithstanding any other provision of law) 
     to--
       (i) complete, maintain, operate, lease, or otherwise 
     dispose of any property acquired pursuant to such guarantee 
     or related agreements; or
       (ii) permit the borrower, pursuant to an agreement with the 
     Secretary, to continue to pursue the purposes of the project 
     if the Secretary determines this to be in the public 
     interest.
       (B) Superiority of rights.--The rights of the Secretary, 
     with respect to any property acquired pursuant to a guarantee 
     or related agreements, shall be superior to the rights of any 
     other person with respect to the property.
       (C) Terms and conditions.--A guarantee agreement shall 
     include such detailed terms and conditions as the Secretary 
     determines appropriate to--
       (i) protect the interests of the United States in the case 
     of default; and
       (ii) have available all the patents and technology 
     necessary for any person selected, including the Secretary, 
     to complete and operate the project.
       (3) Payment of principal and interest by secretary.--With 
     respect to any obligation guaranteed under this section, the 
     Secretary may enter into a contract to pay, and pay, holders 
     of the obligation, for and on behalf of the borrower, from 
     funds appropriated for that purpose, the principal and 
     interest payments which become due and payable on the unpaid 
     balance of the obligation if the Secretary finds that--
       (A)(i) the borrower is unable to meet the payments and is 
     not in default;
       (ii) it is in the public interest to permit the borrower to 
     continue to pursue the purposes of the project; and
       (iii) the probable net benefit to the Federal Government in 
     paying the principal and interest will be greater than that 
     which would result in the event of a default;
       (B) the amount of the payment that the Secretary is 
     authorized to pay shall be no greater than the amount of 
     principal and interest that the borrower is obligated to pay 
     under the agreement being guaranteed; and
       (C) the borrower agrees to reimburse the Secretary for the 
     payment (including interest) on terms and conditions that are 
     satisfactory to the Secretary.
       (4) Action by attorney general.--
       (A) Notification.--If the borrower defaults on an 
     obligation, the Secretary shall notify the Attorney General 
     of the default.
       (B) Recovery.--On notification, the Attorney General shall 
     take such action as is appropriate to recover the unpaid 
     principal and interest due from--
       (i) such assets of the defaulting borrower as are 
     associated with the obligation; or
       (ii) any other security pledged to secure the obligation.
       (h) Fees.--
       (1) In general.--The Secretary shall charge and collect 
     fees for guarantees in amounts the Secretary determines are 
     sufficient to cover applicable administrative expenses.
       (2) Availability.--Fees collected under this subsection 
     shall--
       (A) be deposited by the Secretary into the Treasury; and
       (B) remain available until expended, subject to such other 
     conditions as are contained in annual appropriations Acts.
       (i) Records; Audits.--
       (1) In general.--A recipient of a guarantee shall keep such 
     records and other pertinent documents as the Secretary shall 
     prescribe by regulation, including such records as the 
     Secretary may require to facilitate an effective audit.
       (2) Access.--The Secretary and the Comptroller General of 
     the United States, or their duly authorized representatives, 
     shall have access, for the purpose of audit, to the records 
     and other pertinent documents.
       (j) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all guarantees 
     issued under this section with respect to principal and 
     interest.

     SEC. 1403. ELIGIBLE PROJECTS.

       (a) In General.--The Secretary may make guarantees under 
     this section only for projects that--
       (1) avoid, reduce, or sequester air pollutants or 
     anthropogenic emissions of greenhouse gases; and
       (2) employ new or significantly improved technologies as 
     compared to commercial technologies in service in the United 
     States at the time the guarantee is issued.
       (b) Categories.--Projects from the following categories 
     shall be eligible for a guarantee under this section:
       (1) Renewable energy systems.
       (2) Advanced fossil energy technology (including coal 
     gasification meeting the criteria in subsection (d)).
       (3) Hydrogen fuel cell technology for residential, 
     industrial or -transportation applications.
       (4) Advanced nuclear energy facilities.
       (5) Carbon capture and sequestration practices and 
     technologies, including agricultural and forestry practices 
     that store and sequester carbon.
       (6) Efficient electrical generation, transmission, and 
     distribution -technologies.
       (7) Efficient end-use energy technologies.
       (8) Notwithstanding subsection (a)(2), production 
     facilities for fuel efficient vehicles.
       (c) Gasification Projects.--The Secretary may make 
     guarantees for the following gasification projects:
       (1) Integrated gasification combined cycle projects.--
     Integrated gasification combined cycle plants meeting the 
     emission levels under subsection (d), including--
       (A) projects for the generation of electricity--
       (i) for which, during the term of the guarantee--

       (I) coal, biomass, petroleum coke, or a combination of 
     coal, biomass, and petroleum coke will account for at least 
     65 percent of annual heat input; and
       (II) electricity will account for at least 65 percent of 
     net useful annual energy output;

       (ii) that have a design that is determined by the Secretary 
     to be capable of accommodating the equipment likely to be 
     necessary to capture the carbon dioxide that would otherwise 
     be emitted in flue gas from the plant;
       (iii) that have an assured revenue stream that covers 
     project capital and operating costs (including servicing all 
     debt obligations covered by the guarantee) that is approved 
     by the Secretary and the relevant State public utility 
     commission; and
       (iv) on which construction commences not later than the 
     date that is 3 years after the date of the issuance of the 
     guarantee;
       (B) a project to produce energy from coal (of not more than 
     13,000 Btu/lb and mined in the western United States) using 
     appropriate advanced integrated gasification combined cycle 
     technology that minimizes and offers the potential to 
     sequester carbon dioxide emissions and that--
       (i) may include repowering of existing facilities;
       (ii) may be built in stages;
       (iii) shall have a combined output of at least 100 
     megawatts;
       (iv) shall be located in a western State at an altitude 
     greater than 4,000 feet; and
       (v) shall demonstrate the ability to use coal with an 
     energy content of not more than 9,000 Btu/lb;
       (C) a project located in a taconite-producing region of the 
     United States that is entitled under the law of the State in 
     which the plant is located to enter into a long-term contract 
     approved by a State public utility commission to sell at 
     least 450 megawatts of output to a utility; and
       (D) a facility that--
       (i) generates separate hydrogen-rich (at least 75 percent 
     hydrogen by volume) and carbon monoxide-rich (at least 75 
     percent carbon monoxide by volume) product streams from the 
     gasification of coal; and
       (ii) uses those separate streams to facilitate the 
     production of ultra clean premium fuels through the Fischer-
     Tropsch process.
       (2) Industrial gasification projects.--Facilities that 
     gasify coal, biomass, or petroleum coke in any combination to 
     produce synthesis gas for use as a fuel or feedstock and for 
     which electricity accounts for less than 65 percent of the 
     useful energy output of the facility.
       (d) Emission Levels.--In addition to any other applicable 
     Federal or State emission limitation requirements, a project 
     shall attain at least--
       (1) total sulfur dioxide emissions in flue gas from the 
     project that do not exceed 0.05 lb/mmBTU;
       (2) a 90-percent removal rate (including any fuel 
     pretreatment) of mercury from the coal-derived gas, and any 
     other fuel, combusted by the project;
       (3) total nitrogen oxide emissions in the flue gas from the 
     project that do not exceed 0.08 lb/mmBTU; and

[[Page 12484]]

       (4) total particulate emissions in the flue gas from the 
     project that do not exceed 0.01 lb/mmBTU.
       (e) Qualification of Facilities Receiving Tax Credits.--A 
     project that receives tax credits for clean coal technology 
     shall not be disqualified from receiving a guarantee under 
     this title.

     SEC. 1404. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to provide the cost of guarantees under this title.
                                 ______
                                 
  SA 776. Mr. CHAMBLISS submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

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

            TITLE XV--ARABIA MOUNTAIN NATIONAL HERITAGE AREA

     SEC. 1501. ARABIA MOUNTAIN NATIONAL HERITAGE AREA.

       (a) Short Title.--This section may be cited as the ``Arabia 
     Mountain National Heritage Area Act''.
       (b) Findings and Purposes.--
       (1) Findings.--Congress finds the following:
       (A) The Arabia Mountain area contains a variety of natural, 
     cultural, historical, scenic, and recreational resources that 
     together represent distinctive aspects of the heritage of the 
     United States that are worthy of recognition, conservation, 
     interpretation, and continuing use.
       (B) The best methods for managing the resources of the 
     Arabia Mountain area would be through partnerships between 
     public and private entities that combine diverse resources 
     and active communities.
       (C) Davidson-Arabia Mountain Nature Preserve, a 535-acre 
     park in DeKalb County, Georgia--
       (i) protects granite outcrop ecosystems, wetland, and pine 
     and oak forests; and
       (ii) includes federally-protected plant species.
       (D) Panola Mountain, a national natural landmark, located 
     in the 860-acre Panola Mountain State Conservation Park, is a 
     rare example of a pristine granite outcrop.
       (E) The archaeological site at Miners Creek Preserve along 
     the South River contains documented evidence of early human 
     activity.
       (F) The city of Lithonia, Georgia, and related sites of 
     Arabia Mountain and Stone Mountain possess sites that display 
     the history of granite mining as an industry and culture in 
     Georgia, and the impact of that industry on the United 
     States.
       (G) The community of Klondike is eligible for designation 
     as a National Historic District.
       (H) The city of Lithonia has 2 structures listed on the 
     National Register of Historic Places.
       (2) Purposes.--The purposes of this section are as follows:
       (A) To recognize, preserve, promote, interpret, and make 
     available for the benefit of the public the natural, 
     cultural, historical, scenic, and recreational resources in 
     the area that includes Arabia Mountain, Panola Mountain, 
     Miners Creek, and other significant sites and communities.
       (B) To assist the State of Georgia and the counties of 
     DeKalb, Rockdale, and Henry in the State in developing and 
     implementing an integrated cultural, historical, and land 
     resource management program to protect, enhance, and 
     interpret the significant resources within the heritage area.
       (c) Definitions.--In this section:
       (1) Heritage area.--The term ``heritage area'' means the 
     Arabia Mountain National Heritage Area established by 
     subsection (d)(1).
       (2) Management entity.--The term ``management entity'' 
     means the Arabia Mountain Heritage Area Alliance or a 
     successor of the Arabia Mountain Heritage Area Alliance.
       (3) Management plan.--The term ``management plan'' means 
     the management plan for the heritage area developed under 
     subsection (f).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (5) State.--The term ``State'' means the State of Georgia.
       (d) Arabia Mountain National Heritage Area.--
       (1) Establishment.--There is established the Arabia 
     Mountain National Heritage Area in the State.
       (2) Boundaries.--The heritage area shall consist of certain 
     parcels of land in the counties of DeKalb, Rockdale, and 
     Henry in the State, as generally depicted on the map entitled 
     ``Arabia Mountain National Heritage Area'', numbered AMNHA-
     80,000, and dated October 2003.
       (3) Availability of map.--The map shall be on file and 
     available for public inspection in the appropriate offices of 
     the National Park Service.
       (4) Management entity.--The Arabia Mountain Heritage Area 
     Alliance shall be the management entity for the heritage 
     area.
       (e) Authorities and Duties of the Management Entity.--
       (1) Authorities.--For purposes of developing and 
     implementing the management plan, the management entity may--
       (A) make grants to, and enter into cooperative agreements 
     with, the State, political subdivisions of the State, and 
     private organizations;
       (B) hire and compensate staff; and
       (C) enter into contracts for goods and services.
       (2) Duties.--
       (A) Management plan.--
       (i) In general.--The management entity shall develop and 
     submit to the Secretary the management plan.
       (ii) Considerations.--In developing and implementing the 
     management plan, the management entity shall consider the 
     interests of diverse governmental, business, and nonprofit 
     groups within the heritage area.
       (B) Priorities.--The management entity shall give priority 
     to implementing actions described in the management plan, 
     including the following:
       (i) Assisting units of government and nonprofit 
     organizations in preserving resources within the heritage 
     area.
       (ii) Encouraging local governments to adopt land use 
     policies consistent with the management of the heritage area 
     and the goals of the management plan.
       (C) Public meetings.--The management entity shall conduct 
     public meetings at least quarterly on the implementation of 
     the management plan.
       (D) Annual report.--For any year in which Federal funds 
     have been made available under this section, the management 
     entity shall submit to the Secretary an annual report that 
     describes the following:
       (i) The accomplishments of the management entity.
       (ii) The expenses and income of the management entity.
       (E) Audit.--The management entity shall--
       (i) make available to the Secretary for audit all records 
     relating to the expenditure of Federal funds and any matching 
     funds; and
       (ii) require, with respect to all agreements authorizing 
     expenditure of Federal funds by other organizations, that the 
     receiving organizations make available to the Secretary for 
     audit all records concerning the expenditure of those funds.
       (3) Use of federal funds.--
       (A) In general.--The management entity shall not use 
     Federal funds made available under this section to acquire 
     real property or an interest in real property.
       (B) Other sources.--Nothing in this section precludes the 
     management entity from using Federal funds made available 
     under other Federal laws for any purpose for which the funds 
     are authorized to be used.
       (f) Management Plan.--
       (1) In general.--The management entity shall develop a 
     management plan for the heritage area that incorporates an 
     integrated and cooperative approach to protect, interpret, 
     and enhance the natural, cultural, historical, scenic, and 
     recreational resources of the heritage area.
       (2) Basis.--The management plan shall be based on the 
     preferred concept in the document entitled ``Arabia Mountain 
     National Heritage Area Feasibility Study'', dated February 
     28, 2001.
       (3) Consideration of other plans and actions.--The 
     management plan shall--
       (A) take into consideration State and local plans; and
       (B) involve residents, public agencies, and private 
     organizations in the heritage area.
       (4) Requirements.--The management plan shall include the 
     following:
       (A) An inventory of the resources in the heritage area, 
     including--
       (i) a list of property in the heritage area that--

       (I) relates to the purposes of the heritage area; and
       (II) should be preserved, restored, managed, or maintained 
     because of the significance of the property; and

       (ii) an assessment of cultural landscapes within the 
     heritage area.
       (B) Provisions for the protection, interpretation, and 
     enjoyment of the resources of the heritage area consistent 
     with the purposes of this section.
       (C) An interpretation plan for the heritage area.
       (D) A program for implementation of the management plan 
     that includes--
       (i) actions to be carried out by units of government, 
     private organizations, and public-private partnerships to 
     protect the resources of the heritage area; and
       (ii) the identification of existing and potential sources 
     of funding for implementing the plan.
       (E) A description and evaluation of the management entity, 
     including the membership and organizational structure of the 
     management entity.
       (5) Submission to secretary for approval.--
       (A) In general.--Not later than 3 years after the date of 
     the enactment of this Act, the management entity shall submit 
     the management plan to the Secretary for approval.
       (B) Effect of failure to submit.--If a management plan is 
     not submitted to the Secretary by the date specified in 
     subparagraph (A), the Secretary shall not provide any 
     additional funding under this section until such date as a 
     management plan for

[[Page 12485]]

     the heritage area is submitted to the Secretary.
       (6) Approval and disapproval of management plan.--
       (A) In general.--Not later than 90 days after receiving the 
     management plan submitted under paragraph (5), the Secretary, 
     in consultation with the State, shall approve or disapprove 
     the management plan.
       (B) Action following disapproval.--
       (i) Revision.--If the Secretary disapproves a management 
     plan submitted under paragraph (5), the Secretary shall--

       (I) advise the management entity in writing of the reasons 
     for the disapproval;
       (II) make recommendations for revisions to the management 
     plan; and
       (III) allow the management entity to submit to the 
     Secretary revisions to the management plan.

       (ii) Deadline for approval of revision.--Not later than 90 
     days after the date on which a revision is submitted under 
     clause (i)(III), the Secretary shall approve or disapprove 
     the revision.
       (7) Revision of management plan.--
       (A) In general.--After approval by the Secretary of a 
     management plan, the management entity shall periodically--
       (i) review the management plan; and
       (ii) submit to the Secretary, for review and approval by 
     the Secretary, the recommendations of the management entity 
     for any revisions to the management plan that the management 
     entity considers to be appropriate.
       (B) Expenditure of funds.--No funds made available under 
     this section shall be used to implement any revision proposed 
     by the management entity under subparagraph (A)(ii) until the 
     Secretary approves the revision.
       (g) Technical and Financial Assistance.--
       (1) In general.--At the request of the management entity, 
     the Secretary may provide technical and financial assistance 
     to the heritage area to develop and implement the management 
     plan.
       (2) Priority.--In providing assistance under paragraph (1), 
     the Secretary shall give priority to actions that 
     facilitate--
       (A) the conservation of the significant natural, cultural, 
     historical, scenic, and recreational resources that support 
     the purposes of the heritage area; and
       (B) the provision of educational, interpretive, and 
     recreational opportunities that are consistent with the 
     resources and associated values of the heritage area.
       (h) Effect on Certain Authority.--
       (1) Occupational, safety, conservation, and environmental 
     regulation.--Nothing in this section--
       (A) imposes an occupational, safety, conservation, or 
     environmental regulation on the heritage area that is more 
     stringent than the regulations that would be applicable to 
     the land described in subsection (d)(2) but for the 
     establishment of the heritage area by subsection (d)(1); or
       (B) authorizes a Federal agency to promulgate an 
     occupational, safety, conservation, or environmental 
     regulation for the heritage area that is more stringent than 
     the regulations applicable to the land described in 
     subsection (d)(2) as of the date of enactment of this Act, 
     solely as a result of the establishment of the heritage area 
     by subsection (d)(1).
       (2) Land use regulation.--Nothing in this section--
       (A) modifies, enlarges, or diminishes any authority of the 
     Federal Government or a State or local government to regulate 
     any use of land as provided for by law (including 
     regulations) in existence on the date of enactment of this 
     Act; or
       (B) grants powers of zoning or land use to the management 
     entity.
       (i) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $10,000,000, to remain available until 
     expended, of which not more than $1,000,000 may be used in 
     any fiscal year.
       (2) Federal share.--The Federal share of the cost of any 
     project or activity carried out using funds made available 
     under this section shall not exceed 50 percent.
       (j) Termination of Authority.--The authority of the 
     Secretary to make any grant or provide any assistance under 
     this section shall terminate on September 30, 2016.
                                 ______
                                 
  SA 777. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill S. 606, to amend the Clean Air Act to eliminate 
methyl tertiary butyl ether from the United States fuel supply, to 
increase production and use of renewable fuel, and to increase the 
Nation's energy independence, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 24, between lines 5 and 6, insert the following:
       ``(1) Alternative fuel.--The term `alternative fuel' has 
     the meaning given the term in section 301 of the Energy 
     Policy Act of 1992 (42 U.S.C. 13211).
       ``(2) Biomass-derived liquid alternative fuel.--
       ``(A) In general.--The term `biomass-derived liquid 
     alternative fuel' means an alternative fuel, or a blending 
     component for alternate fuel, that--
       ``(i) is derived from cellulosic biomass feedstocks; and
       ``(ii) remains substantially in a liquid phase at room 
     temperature and atmospheric pressure.
       ``(B) Certain liquid alternative fuels.--For any liquid 
     alternative fuel that contains a component that is not 
     derived from a cellulosic biomass feedstock, only the portion 
     of the fuel that is derived from a cellulosic biomass 
     feedstock shall be considered to be a biomass-derived liquid 
     alternative fuel.
       ``(3) Cellulosic biomass feedstock.--The term `cellulosic 
     biomass feedstock' means--
       ``(A) dedicated energy crops and trees;
       ``(B) wood and wood residues;
       ``(C) plants;
       ``(D) grasses;
       ``(E) agricultural residues;
       ``(F) fibers;
       ``(G) animal wastes and other waste materials; and
       ``(H) municipal solid waste.
       On page 24, line 6, strike ``(1)'' and insert ``(4)''.
       On page 24, line 10, strike ``(2)'' and insert ``(5)''.
       On page 24, line 13, strike ``(3)'' and insert ``(6)''.
       On page 31, strike lines 7 and 8 and insert the following:
       ``(f) Conversion Assistance for Cellulosic Biomass Ethanol 
     and Biomass-derived Liquid Alternative Fuels.--
       On page 31, line 11, insert ``and biomass-derived liquid 
     alternative fuels'' after ``ethanol''.
       On page 31, line 14, insert ``and biomass-derived liquid 
     alternative fuels'' after ``ethanol''.
       On page 31, beginning on line 19, strike ``derived from 
     agricultural residues or municipal solid waste''.
                                 ______
                                 
  SA 778. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:
       Strike subsection (a) of section 204 and insert the 
     following:
       (a) Definitions.--
       (1) Cellulosic biomass ethanol.--The term ``cellulosic 
     biomass ethanol'' means ethanol derived from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis, including a cellulosic 
     biomass feedstock.
       (2) Cellulosic biomass-derived liquid alternative fuel.--
       (A) In general.--The term ``cellulosic biomass-derived 
     liquid alternative fuel'' means an alternative fuel (as 
     defined in section 301 of the Energy Policy Act of 1992 (42 
     U.S.C. 13211)), or a blending component for alternate fuel, 
     that--
       (i) is derived from cellulosic biomass feedstock or waste; 
     and
       (ii) remains substantially in a liquid phase at room 
     temperature and atmospheric pressure.
       (B) Certain liquid alternative fuels.--For any liquid 
     alternative fuel that contains a component that is not 
     derived from a cellulosic biomass feedstock or waste, only 
     the portion of the fuel that is derived from a cellulosic 
     biomass feedstock shall be considered to be a biomass-derived 
     liquid alternative fuel.
       (3) Cellulosic biomass feedstock.--The term ``cellulosic 
     biomass feedstock'' means--
       (A) dedicated energy crops and trees;
       (B) wood and wood residues;
       (C) plants;
       (D) grasses;
       (E) agricultural residues;
       (F) fibers;
       (G) animal wastes and other waste materials; and
       (H) municipal solid waste.
       (4) Renewable fuel.--
       (A) In general.--The term ``renewable fuel'' means motor 
     vehicle fuel that--
       (i)(I) is produced from grain, starch, oilseeds, sugar 
     cane, sugar beets, sugar components, tobacco, potatoes, or 
     other biomass; or
       (II) is natural gas produced from a biogas source, 
     including a landfill, sewage waste treatment plant, feedlot, 
     or other place where decaying organic material is found; and
       (ii) is used to replace or reduce the quantity of fossil 
     fuel present in a fuel mixture used to operate a motor 
     vehicle.
       (B) Inclusions.--The term ``renewable fuel'' includes--
       (i) cellulosic biomass ethanol;
       (ii) waste derived ethanol;
       (iii) biodiesel (as defined in section 312(f) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13220(f)); and
       (iv) any blending components derived from renewable fuel, 
     except that only the renewable fuel portion of the blending 
     component shall be considered part of the applicable volume 
     under the renewable fuel program established by this section.
       (5) Small refinery.--The term ``small refinery'' means a 
     refinery for which average aggregate daily crude oil 
     throughput for the calendar year (as determined by dividing 
     the aggregate throughput for the calendar year by the number 
     of days in the calendar year) does not exceed 75,000 barrels.

[[Page 12486]]

       (6) Waste.--The term ``waste'' means--
       (A) animal wastes, including poultry fats and poultry 
     wastes, and other waste materials; or
       (B) municipal solid waste (as defined in section 1004 of 
     the Solid Waste Disposal Act (42 U.S.C. 6903)).
       In section 204(j), insert ``or cellulosic biomass-derived 
     liquid alternative fuels'' after ``ethanol'' each place it 
     appears.
       Strike subparagraph (A) of section 209(c)(1) and insert the 
     following:
       (A) to develop not less than 4 different conversion 
     technologies for producing cellulosic biomass ethanol and 
     cellulosic biomass-derived liquid alternative fuel (as 
     defined in section 204(a)); and
                                 ______
                                 
  SA 779. Mr. DOMENICI (for himself, Mr. Thune, Mr. Harkin, Mr. Lugar, 
Mr. Dorgan, Mr. Frist, Mr. Obama, Mr. Grassley, Mr. Bayh, Mr. Bond, Mr. 
Nelson of Nebraska, Mr. Brownback, Mr. Johnson, Mr. Hagel, Mr. Conrad, 
Mr. DeWine, Mr. Dayton, Mr. Talent, Ms. Stabenow, Mr. Coleman, Mr. 
Salazar, and Mr. Durbin) proposed an amendment to the bill H.R. 6, 
Reserved; as follows:

       Beginning on page 135, strike line 10 and all that follows 
     through page 159, line 23, and insert the following:

                       Subtitle B--Reliable Fuels

     SEC. 205. RENEWABLE CONTENT OF GASOLINE.

       (a) In General.--Section 211 of the Clean Air Act (42 
     U.S.C. 7545) is amended--
       (1) by redesignating subsection (o) as subsection (r); and
       (2) by inserting after subsection (n) the following:
       ``(o) Renewable Fuel Program.--
       ``(1) Definitions.--In this section:
       ``(A) Cellulosic biomass ethanol.--The term `cellulosic 
     biomass ethanol' means ethanol derived from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis, including--
       ``(i) dedicated energy crops and trees;
       ``(ii) wood and wood residues;
       ``(iii) plants;
       ``(iv) grasses;
       ``(v) agricultural residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) municipal solid waste.
       ``(B) Renewable fuel.--
       ``(i) In general.--The term `renewable fuel' means motor 
     vehicle fuel that--

       ``(I)(aa) is produced from grain, starch, oilseeds, 
     sugarcane, sugar beets, sugar components, tobacco, potatoes, 
     or other biomass; or
       ``(bb) is natural gas produced from a biogas source, 
     including a landfill, sewage waste treatment plant, feedlot, 
     or other place where decaying organic material is found; and
       ``(II) is used to replace or reduce the quantity of fossil 
     fuel present in a fuel mixture used to operate a motor 
     vehicle.

       ``(ii) Inclusion.--The term `renewable fuel' includes--

       ``(I) cellulosic biomass ethanol; and
       ``(II) biodiesel (as defined in section 312(f) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13220(f))).

       ``(C) Small refinery.--The term `small refinery' means a 
     refinery for which the average aggregate daily crude oil 
     throughput for a calendar year (as determined by dividing the 
     aggregate throughput for the calendar year by the number of 
     days in the calendar year) does not exceed 75,000 barrels.
       ``(2) Renewable fuel program.--
       ``(A) Regulations.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Administrator shall 
     promulgate regulations to ensure that gasoline sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, contains the applicable volume of renewable fuel 
     determined in accordance with subparagraph (B).
       ``(ii) Noncontiguous state opt-in.--

       ``(I) In general.--On the petition of a noncontiguous State 
     or territory, the Administrator may allow the renewable fuel 
     program established under this subsection to apply in the 
     noncontiguous State or territory at the same time or any time 
     after the Administrator promulgates regulations under this 
     subparagraph.
       ``(II) Other actions.--In carrying out this clause, the 
     Administrator may--

       ``(aa) issue or revise regulations under this paragraph;
       ``(bb) establish applicable percentages under paragraph 
     (3);
       ``(cc) provide for the generation of credits under 
     paragraph (5); and
       ``(dd) take such other actions as are necessary to allow 
     for the application of the renewable fuels program in a 
     noncontiguous State or territory.
       ``(iii) Provisions of regulations.--Regardless of the date 
     of promulgation, the regulations promulgated under clause 
     (i)--

       ``(I) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that the requirements of this 
     paragraph are met; but
       ``(II) shall not--

       ``(aa) restrict geographic areas in which renewable fuel 
     may be used; or
       ``(bb) impose any per-gallon obligation for the use of 
     renewable fuel.
       ``(iv) Requirement in case of failure to promulgate 
     regulations.--If the Administrator does not promulgate 
     regulations under clause (i), the percentage of renewable 
     fuel in gasoline sold or dispensed to consumers in the United 
     States, on a volume basis, shall be 3.2 percent for calendar 
     year 2006.
       ``(B) Applicable volume.--
       ``(i) Calendar years 2006 through 2012.--For the purpose of 
     subparagraph (A), the applicable volume for any of calendar 
     years 2006 through 2012 shall be determined in accordance 
     with the following table:

                                    Applicable volume of renewable fuel
``Calendar year:                              (in billions of gallons):
  2006..........................................................4.0....

  2007..........................................................4.7....

  2008..........................................................5.4....

  2009..........................................................6.1....

  2010..........................................................6.8....

  2011..........................................................7.4....

  2012.........................................................8.0.....

       ``(ii) Calendar year 2013 and thereafter.--Subject to 
     clauses (iii) and (iv), for the purposes of subparagraph (A), 
     the applicable volume for calendar year 2013 and each 
     calendar year thereafter shall be determined by the 
     Administrator, in coordination with the Secretary of 
     Agriculture and the Secretary of Energy, based on a review of 
     the implementation of the program during calendar years 2006 
     through 2012, including a review of--

       ``(I) the impact of the use of renewable fuels on the 
     environment, air quality, energy security, job creation, and 
     rural economic development; and
       ``(II) the expected annual rate of future production of 
     renewable fuels, including cellulosic ethanol.

       ``(iii) Minimum quantity derived from cellulosic biomass.--
     For calendar year 2013 and each calendar year thereafter--

       ``(I) the applicable volume referred to in clause (ii) 
     shall contain a minimum of 250,000,000 gallons that are 
     derived from cellulosic biomass; and
       ``(II) the 2.5-to-1 ratio referred to in paragraph (4) 
     shall not apply.

       ``(iv) Minimum applicable volume.--For the purpose of 
     subparagraph (A), the applicable volume for calendar year 
     2013 and each calendar year thereafter shall be not less than 
     the product obtained by multiplying--

       ``(I) the number of gallons of gasoline that the 
     Administrator estimates will be sold or introduced into 
     commerce in the calendar year; and
       ``(II) the ratio that--

       ``(aa) 8,000,000,000 gallons of renewable fuel; bears to
       ``(bb) the number of gallons of gasoline sold or introduced 
     into commerce in calendar year 2012.
       ``(3) Applicable percentages.--
       ``(A) Provision of estimate of volumes of Gasoline sales.--
     Not later than October 31 of each of calendar years 2005 
     through 2011, the Administrator of the Energy Information 
     Administration shall provide to the Administrator of the 
     Environmental Protection Agency an estimate, with respect to 
     the following calendar year, of the volumes of gasoline 
     projected to be sold or introduced into commerce in the 
     United States.
       ``(B) Determination of applicable percentages.--
       ``(i) In general.--Not later than November 30 of each of 
     calendar years 2005 through 2012, based on the estimate 
     provided under subparagraph (A), the Administrator of the 
     Environmental Protection Agency shall determine and publish 
     in the Federal Register, with respect to the following 
     calendar year, the renewable fuel obligation that ensures 
     that the requirements of paragraph (2) are met.
       ``(ii) Required elements.--The renewable fuel obligation 
     determined for a calendar year under clause (i) shall--

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

       ``(C) Adjustments.--In determining the applicable 
     percentage for a calendar year, the Administrator shall make 
     adjustments--
       ``(i) to prevent the imposition of redundant obligations on 
     any person specified in subparagraph (B)(ii)(I); and
       ``(ii) to account for the use of renewable fuel during the 
     previous calendar year by small refineries that are exempt 
     under paragraph (9).
       ``(4) Cellulosic biomass ethanol.--For the purpose of 
     paragraph (2), 1 gallon of cellulosic biomass ethanol shall 
     be considered to be the equivalent of 2.5 gallons of 
     renewable fuel.
       ``(5) Credit program.--
       ``(A) In general.--The regulations promulgated under 
     paragraph (2)(A) shall provide--

[[Page 12487]]

       ``(i) for the generation of an appropriate amount of 
     credits by any person that refines, blends, or imports 
     gasoline that contains a quantity of renewable fuel that is 
     greater than the quantity required under paragraph (2);
       ``(ii) for the generation of an appropriate amount of 
     credits for biodiesel; and
       ``(iii) for the generation of credits by small refineries 
     in accordance with paragraph (9)(C).
       ``(B) Use of credits.--A person that generates credits 
     under subparagraph (A) may use the credits, or transfer all 
     or a portion of the credits to another person, for the 
     purpose of complying with paragraph (2).
       ``(C) Duration of credits.--A credit generated under this 
     paragraph shall be valid to show compliance for the calendar 
     year in which the credit was generated.
       ``(D) Inability to generate or purchase sufficient 
     credits.--The regulations promulgated under paragraph (2)(A) 
     shall include provisions allowing any person that is unable 
     to generate or purchase sufficient credits to meet the 
     requirements of paragraph (2) to carry forward a renewable 
     fuel deficit on condition that the person, in the calendar 
     year following the year in which the renewable fuel deficit 
     is created--
       ``(i) achieves compliance with the renewable fuel 
     requirement under paragraph (2); and
       ``(ii) generates or purchases additional renewable fuel 
     credits to offset the renewable fuel deficit of the previous 
     year.
       ``(6) Seasonal variations in renewable fuel use.--
       ``(A) Study.--For each of calendar years 2006 through 2012, 
     the Administrator of the Energy Information Administration 
     shall conduct a study of renewable fuel blending to determine 
     whether there are excessive seasonal variations in the use of 
     renewable fuel.
       ``(B) Regulation of excessive seasonal variations.--If, for 
     any calendar year, the Administrator of the Energy 
     Information Administration, based on the study under 
     subparagraph (A), makes the determinations specified in 
     subparagraph (C), the Administrator of the Environmental 
     Protection Agency shall promulgate regulations to ensure that 
     35 percent or more of the quantity of renewable fuel 
     necessary to meet the requirements of paragraph (2) is used 
     during each of the 2 periods specified in subparagraph (D) of 
     each subsequent calendar year.
       ``(C) Determinations.--The determinations referred to in 
     subparagraph (B) are that--
       ``(i) less than 35 percent of the quantity of renewable 
     fuel necessary to meet the requirements of paragraph (2) has 
     been used during 1 of the 2 periods specified in subparagraph 
     (D) of the calendar year; and
       ``(ii) a pattern of excessive seasonal variation described 
     in clause (i) will continue in subsequent calendar years.
       ``(D) Periods.--The 2 periods referred to in this paragraph 
     are--
       ``(i) April through September; and
       ``(ii) January through March and October through December.
       ``(E) Exclusion.--Renewable fuel blended or consumed in 
     calendar year 2006 in a State that has received a waiver 
     under section 209(b) shall not be included in the study under 
     subparagraph (A).
       ``(F) State exemption from seasonality requirements.--
     Notwithstanding any other provision of law, the seasonality 
     requirement relating to renewable fuel use established by 
     this paragraph shall not apply to any State that has received 
     a waiver under section 209(b).
       ``(7) Waivers.--
       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     waive the requirements of paragraph (2) in whole or in part 
     on petition by 1 or more States by reducing the national 
     quantity of renewable fuel required under paragraph (2)--
       ``(i) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that 
     implementation of the requirement would severely harm the 
     economy or environment of a State, a region, or the United 
     States; or
       ``(ii) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that there is an 
     inadequate domestic supply.
       ``(B) Petitions for waivers.--The Administrator, in 
     consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall approve or disapprove a State 
     petition for a waiver of the requirements of paragraph (2) 
     within 90 days after the date on which the petition is 
     received by the Administrator.
       ``(C) Termination of waivers.--A waiver granted under 
     subparagraph (A) shall terminate after 1 year, but may be 
     renewed by the Administrator after consultation with the 
     Secretary of Agriculture and the Secretary of Energy.
       ``(8) Study and waiver for initial year of program.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, the Secretary of Energy shall 
     conduct for the Administrator a study assessing whether the 
     renewable fuel requirement under paragraph (2) will likely 
     result in significant adverse impacts on consumers in 2006, 
     on a national, regional, or State basis.
       ``(B) Required evaluations.--The study shall evaluate 
     renewable fuel--
       ``(i) supplies and prices;
       ``(ii) blendstock supplies; and
       ``(iii) supply and distribution system capabilities.
       ``(C) Recommendations by the Secretary.--Based on the 
     results of the study, the Secretary of Energy shall make 
     specific recommendations to the Administrator concerning 
     waiver of the requirements of paragraph (2), in whole or in 
     part, to prevent any adverse impacts described in 
     subparagraph (A).
       ``(D) Waiver.--
       ``(i) In general.--Not later than 270 days after the date 
     of enactment of this paragraph, the Administrator shall, if 
     and to the extent recommended by the Secretary of Energy 
     under subparagraph (C), waive, in whole or in part, the 
     renewable fuel requirement under paragraph (2) by reducing 
     the national quantity of renewable fuel required under 
     paragraph (2) in calendar year 2006.
       ``(ii) No effect on waiver authority.--Clause (i) does not 
     limit the authority of the Administrator to waive the 
     requirements of paragraph (2) in whole, or in part, under 
     paragraph (7).
       ``(9) Small refineries.--
       ``(A) Temporary exemption.--
       ``(i) In general.--The requirements of paragraph (2) shall 
     not apply to small refineries until calendar year 2011.
       ``(ii) Extension of exemption.--

       ``(I) Study by Secretary of Energy.--Not later than 
     December 31, 2008, the Secretary of Energy shall conduct for 
     the Administrator a study to determine whether compliance 
     with the requirements of paragraph (2) would impose a 
     disproportionate economic hardship on small refineries.
       ``(II) Extension of exemption.--In the case of a small 
     refinery that the Secretary of Energy determines under 
     subclause (I) would be subject to a disproportionate economic 
     hardship if required to comply with paragraph (2), the 
     Administrator shall extend the exemption under clause (i) for 
     the small refinery for a period of not less than 2 additional 
     years.

       ``(B) Petitions based on disproportionate economic 
     hardship.--
       ``(i) Extension of exemption.--A small refinery may at any 
     time petition the Administrator for an extension of the 
     exemption under subparagraph (A) for the reason of 
     disproportionate economic hardship.
       ``(ii) Evaluation of petitions.--In evaluating a petition 
     under clause (i), the Administrator, in consultation with the 
     Secretary of Energy, shall consider the findings of the study 
     under subparagraph (A)(ii) and other economic factors.
       ``(iii) Deadline for action on petitions.--The 
     Administrator shall act on any petition submitted by a small 
     refinery for a hardship exemption not later than 90 days 
     after the date of receipt of the petition.
       ``(C) Credit program.--If a small refinery notifies the 
     Administrator that the small refinery waives the exemption 
     under subparagraph (A), the regulations promulgated under 
     paragraph (2)(A) shall provide for the generation of credits 
     by the small refinery under paragraph (5) beginning in the 
     calendar year following the date of notification.
       ``(D) Opt-in for small refineries.--A small refinery shall 
     be subject to the requirements of paragraph (2) if the small 
     refinery notifies the Administrator that the small refinery 
     waives the exemption under subparagraph (A).
       ``(10) Ethanol market concentration analysis.--
       ``(A) Analysis.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, and annually thereafter, the 
     Federal Trade Commission shall perform a market concentration 
     analysis of the ethanol production industry using the 
     Herfindahl-Hirschman Index to determine whether there is 
     sufficient competition among industry participants to avoid 
     price-setting and other anticompetitive behavior.
       ``(ii) Scoring.--For the purpose of scoring under clause 
     (i) using the Herfindahl-Hirschman Index, all marketing 
     arrangements among industry participants shall be considered.
       ``(B) Report.--Not later than December 1, 2005, and 
     annually thereafter, the Federal Trade Commission shall 
     submit to Congress and the Administrator a report on the 
     results of the market concentration analysis performed under 
     subparagraph (A)(i).
       ``(p) Renewable Fuel Safe Harbor.--
       ``(1) In general.--
       ``(A) Safe harbor.--Notwithstanding any other provision of 
     Federal or State law, no renewable fuel (as defined in 
     subsection (o)(1)) used or intended to be used as a motor 
     vehicle fuel, nor any motor vehicle fuel containing renewable 
     fuel, shall be deemed to be defective in design or 
     manufacture by reason of the fact that the fuel is, or 
     contains, renewable fuel, if--
       ``(i) the fuel does not violate a control or prohibition 
     imposed by the Administrator under this section; and
       ``(ii) the manufacturer of the fuel is in compliance with 
     all requests for information under subsection (b).

[[Page 12488]]

       ``(B) Safe harbor not applicable.--In any case in which 
     subparagraph (A) does not apply to a quantity of fuel, the 
     existence of a design defect or manufacturing defect with 
     respect to the fuel shall be determined under otherwise 
     applicable law.
       ``(2) Exception.--This subsection does not apply to ethers.
       ``(3) Applicability.--This subsection applies with respect 
     to all claims filed on or after the date of enactment of this 
     subsection.''.
       (b) Penalties and Enforcement.--Section 211(d) of the Clean 
     Air Act (42 U.S.C. 7545(d)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence, by striking ``or (n)'' each 
     place it appears and inserting ``(n), or (o)''; and
       (B) in the second sentence, by striking ``or (m)'' and 
     inserting ``(m), or (o)''; and
       (2) in the first sentence of paragraph (2), by striking 
     ``and (n)'' each place it appears and inserting ``(n), and 
     (o)''.
       (c) Exclusion From Ethanol Waiver.--Section 211(h) of the 
     Clean Air Act (42 U.S.C. 7545(h)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5) Exclusion from ethanol waiver.--
       ``(A) Promulgation of regulations.--Upon notification, 
     accompanied by supporting documentation, from the Governor of 
     a State that the Reid vapor pressure limitation established 
     by paragraph (4) will increase emissions that contribute to 
     air pollution in any area in the State, the Administrator 
     shall, by regulation, apply, in lieu of the Reid vapor 
     pressure limitation established by paragraph (4), the Reid 
     vapor pressure limitation established by paragraph (1) to all 
     fuel blends containing gasoline and 10 percent denatured 
     anhydrous ethanol that are sold, offered for sale, dispensed, 
     supplied, offered for supply, transported, or introduced into 
     commerce in the area during the high ozone season.
       ``(B) Deadline for promulgation.--The Administrator shall 
     promulgate regulations under subparagraph (A) not later than 
     90 days after the date of receipt of a notification from a 
     Governor under that subparagraph.
       ``(C) Effective date.--
       ``(i) In general.--With respect to an area in a State for 
     which the Governor submits a notification under subparagraph 
     (A), the regulations under that subparagraph shall take 
     effect on the later of--

       ``(I) the first day of the first high ozone season for the 
     area that begins after the date of receipt of the 
     notification; or
       ``(II) 1 year after the date of receipt of the 
     notification.

       ``(ii) Extension of effective date Based on determination 
     of insufficient supply.--

       ``(I) In general.--If, after receipt of a notification with 
     respect to an area from a Governor of a State under 
     subparagraph (A), the Administrator determines, on the 
     Administrator's own motion or on petition of any person and 
     after consultation with the Secretary of Energy, that the 
     promulgation of regulations described in subparagraph (A) 
     would result in an insufficient supply of gasoline in the 
     State, the Administrator, by regulation--

       ``(aa) shall extend the effective date of the regulations 
     under clause (i) with respect to the area for not more than 1 
     year; and
       ``(bb) may renew the extension under item (aa) for 2 
     additional periods, each of which shall not exceed 1 year.

       ``(II) Deadline for action on petitions.--The Administrator 
     shall act on any petition submitted under subclause (I) not 
     later than 180 days after the date of receipt of the 
     petition.''.

     SEC. 206. RENEWABLE FUEL.

       (a) In General.--The Clean Air Act is amended by inserting 
     after section 211 (42 U.S.C. 7411) the following:

     ``SEC. 212. RENEWABLE FUEL.

       ``(a) Definitions.--In this section:
       ``(1) Municipal solid waste.--The term `municipal solid 
     waste' has the meaning given the term `solid waste' in 
     section 1004 of the Solid Waste Disposal Act (42 U.S.C. 
     6903).
       ``(2) RFG State.--The term `RFG State' means a State in 
     which is located 1 or more covered areas (as defined in 
     section 211(k)(10)(D)).
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(b) Survey of Renewable Fuel Market.--
       ``(1) Survey and report.--Not later than December 1, 2006, 
     and annually thereafter, the Administrator shall--
       ``(A) conduct, with respect to each conventional gasoline 
     use area and each reformulated gasoline use area in each 
     State, a survey to determine the market shares of--
       ``(i) conventional gasoline containing ethanol;
       ``(ii) reformulated gasoline containing ethanol;
       ``(iii) conventional gasoline containing renewable fuel; 
     and
       ``(iv) reformulated gasoline containing renewable fuel; and
       ``(B) submit to Congress, and make publicly available, a 
     report on the results of the survey under subparagraph (A).
       ``(2) Recordkeeping and reporting requirements.--
       ``(A) In general.--The Administrator may require any 
     refiner, blender, or importer to keep such records and make 
     such reports as are necessary to ensure that the survey 
     conducted under paragraph (1) is accurate.
       ``(B) Reliance on existing requirements.--To avoid 
     duplicative requirements, in carrying out subparagraph (A), 
     the Administrator shall rely, to the maximum extent 
     practicable, on reporting and recordkeeping requirements in 
     effect on the date of enactment of this section.
       ``(3) Confidentiality.--Activities carried out under this 
     subsection shall be conducted in a manner designed to protect 
     confidentiality of individual responses.
       ``(c)  Cellulosic Biomass Ethanol And Municipal Solid Waste 
     Loan Guarantee Program.--
       ``(1) In general.--Funds may be provided for the cost (as 
     defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661 et seq.)) of loan guarantees issued under section 19 of 
     the Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5919) to carry out commercial demonstration 
     projects for celluosic biomass and sucrose-derived ethanol.
       ``(2) Demonstration projects.--
       ``(A) In general.--The Secretary shall issue loan 
     guarantees under this section to carry out not more than 4 
     projects to commercially demonstrate the feasibility and 
     viability of producing cellulosic biomass ethanol or sucrose-
     derived ethanol, including at least 1 project that uses 
     cereal straw as a feedstock and 1 project that uses municipal 
     solid waste as a feedstock.
       ``(B) Design capacity.--Each project shall have a design 
     capacity to produce at least 30,000,000 gallons of cellulosic 
     biomass ethanol each year.
       ``(3) Applicant assurances.--An applicant for a loan 
     guarantee under this section shall provide assurances, 
     satisfactory to the Secretary, that--
       ``(A) the project design has been validated through the 
     operation of a continuous process facility with a cumulative 
     output of at least 50,000 gallons of ethanol;
       ``(B) the project has been subject to a full technical 
     review;
       ``(C) the project is covered by adequate project 
     performance guarantees;
       ``(D) the project, with the loan guarantee, is economically 
     viable; and
       ``(E) there is a reasonable assurance of repayment of the 
     guaranteed loan.
       ``(4) Limitations.--
       ``(A) Maximum guarantee.--Except as provided in 
     subparagraph (B), notwithstanding section 19(c)(2)(A) of the 
     Federal Nonnuclear Energy Research and Development Act of 
     1974 (42 U.S.C. 5919(c)(2)(A)), a loan guarantee under this 
     section may be issued for up to 80 percent of the estimated 
     cost of a project, but may not exceed $250,000,000 for a 
     project.
       ``(B) Additional guarantees.--
       ``(i) In general.--The Secretary may issue additional loan 
     guarantees for a project to cover up to 80 percent of the 
     excess of actual project cost over estimated project cost but 
     not to exceed 15 percent of the amount of the original 
     guarantee.
       ``(ii) Principal and interest.--Subject to subparagraph 
     (A), the Secretary shall guarantee 100 percent of the 
     principal and interest of a loan made under subparagraph (A).
       ``(5) Equity contributions.--To be eligible for a loan 
     guarantee under this section, an applicant for the loan 
     guarantee shall have binding commitments from equity 
     investors to provide an initial equity contribution of at 
     least 20 percent of the total project cost.
       ``(6) Effect of other laws.--The following provisions are 
     inapplicable to a loan guarantee made under this section:
       ``(A) Subsections (m) and (p) of section 19 of the Federal 
     Nonnuclear Energy Research and Development Act of 1974 (42 
     U.S.C. 5919).
       ``(B) The first, third, and fourth sentences of section 
     19(g)(4) of that Act.
       ``(7) Insufficient amounts.--If the amount made available 
     to carry out this section is insufficient to allow the 
     Secretary to make loan guarantees for 3 projects described in 
     subsection (b), the Secretary shall issue loan guarantees for 
     1 or more qualifying projects under this section in the order 
     in which the applications for the projects are received by 
     the Secretary.
       ``(8) Approval.--An application for a loan guarantee under 
     this section shall be approved or disapproved by the 
     Secretary not later than 90 days after the application is 
     received by the Secretary.
       ``(d) Authorization of Appropriations for Resource 
     Center.--There is authorized to be appropriated, for a 
     resource center to further develop bioconversion technology 
     using low-cost biomass for the production of ethanol at the 
     Center for Biomass-Based Energy at the Mississippi State 
     University and the Oklahoma State University, $4,000,000 for 
     each of fiscal years 2005 through 2007.
       ``(e) Renewable Fuel Production Research and Development 
     Grants.--
       ``(1) In general.--The Administrator shall provide grants 
     for the research into, and development and implementation of, 
     renewable fuel production technologies in RFG States with low 
     rates of ethanol production, including low rates of 
     production of cellulosic biomass ethanol.
       ``(2) Eligibility.--
       ``(A) In general.--The entities eligible to receive a grant 
     under this subsection are

[[Page 12489]]

     academic institutions in RFG States, and consortia made up of 
     combinations of academic institutions, industry, State 
     government agencies, or local government agencies in RFG 
     States, that have proven experience and capabilities with 
     relevant technologies.
       ``(B) Application.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall submit to the 
     Administrator an application in such manner and form, and 
     accompanied by such information, as the Administrator may 
     specify.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2006 through 2010.
       ``(f) Cellulosic Biomass Ethanol Conversion Assistance.--
       ``(1) In general.--The Secretary may provide grants to 
     merchant producers of cellulosic biomass ethanol in the 
     United States to assist the producers in building eligible 
     production facilities described in paragraph (2) for the 
     production of cellulosic biomass ethanol.
       ``(2) Eligible production facilities.--A production 
     facility shall be eligible to receive a grant under this 
     subsection if the production facility--
       ``(A) is located in the United States; and
       ``(B) uses cellulosic biomass feedstocks derived from 
     agricultural residues or municipal solid waste.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection--
       ``(A) $250,000,000 for fiscal year 2005; and
       ``(B) $400,000,000 for fiscal year 2006.''.
       (b) Conforming Amendment.--The table of contents for the 
     Clean Air Act (42 U.S.C. 7401 prec.) is amended by inserting 
     after the item relating to section 211 the following:

``Sec. 212. Renewable fuels''.

     SEC. 207. SURVEY OF RENEWABLE FUELS CONSUMPTION.

       Section 205 of the Department of Energy Organization Act 
     (42 U.S.C. 7135) is amended by adding at the end the 
     following:
       ``(m) Survey of Renewable Fuels Consumption.--
       ``(1) In general.--In order to improve the ability to 
     evaluate the effectiveness of the Nation's renewable fuels 
     mandate, the Administrator shall conduct and publish the 
     results of a survey of renewable fuels consumption in the 
     motor vehicle fuels market in the United States monthly, and 
     in a manner designed to protect the confidentiality of 
     individual responses.
       ``(2) Elements of survey.--In conducting the survey, the 
     Administrator shall collect information retrospectively to 
     1998, on a national basis and a regional basis, including--
       ``(A) the quantity of renewable fuels produced;
       ``(B) the cost of production;
       ``(C) the cost of blending and marketing;
       ``(D) the quantity of renewable fuels blended;
       ``(E) the quantity of renewable fuels imported; and
       ``(F) market price data.''.

                 Subtitle C--Federal Reformulated Fuels

     SEC. 209. SHORT TITLE.

       This subtitle may be cited as the ``Federal Reformulated 
     Fuels Act of 2005''.

     SEC. 210. LEAKING UNDERGROUND STORAGE TANKS.

       (a) Use of LUST Funds for Remediation of Contamination From 
     Ether Fuel Additives.--Section 9003(h) of the Solid Waste 
     Disposal Act (42 U.S.C. 6991b(h)) is amended--
       (1) in paragraph (7)(A)--
       (A) by striking ``paragraphs (1) and (2) of this 
     subsection'' and inserting ``paragraphs (1), (2), and (12)''; 
     and
       (B) by inserting ``and section 9010'' before ``if''; and
       (2) by adding at the end the following:
       ``(12) Remediation of contamination from ether fuel 
     additives.--
       ``(A) In general.--The Administrator and the States may use 
     funds made available under section 9013(1) to carry out 
     corrective actions with respect to a release of methyl 
     tertiary butyl ether or other ether fuel additive that 
     presents a threat to human health, welfare, or the 
     environment.
       ``(B) Applicable authority.--Subparagraph (A) shall be 
     carried out--
       ``(i) in accordance with paragraph (2), except that a 
     release with respect to which a corrective action is carried 
     out under subparagraph (A) shall not be required to be from 
     an underground storage tank; and
       ``(ii) in the case of a State, in accordance with a 
     cooperative agreement entered into by the Administrator and 
     the State under paragraph (7).''.
       (b) Release Prevention and Compliance.--Subtitle I of the 
     Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended 
     by striking section 9010 and inserting the following:

     ``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

       ``Funds made available under section 9013(2) from the 
     Leaking Underground Storage Tank Trust Fund may be used for 
     conducting inspections, or for issuing orders or bringing 
     actions under this subtitle--
       ``(1) by a State (pursuant to section 9003(h)(7)) acting 
     under--
       ``(A) a program approved under section 9004; or
       ``(B) State requirements regulating underground storage 
     tanks that are similar or identical to this subtitle, as 
     determined by the Administrator; and
       ``(2) by the Administrator, acting under this subtitle or a 
     State program approved under section 9004.

     ``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

       ``In addition to amounts made available under section 
     2007(f), there are authorized to be appropriated from the 
     Leaking Underground Storage Tank Trust Fund, notwithstanding 
     section 9508(c)(1) of the Internal Revenue Code of 1986--
       ``(1) to carry out section 9003(h)(12), $200,000,000 for 
     fiscal year 2005, to remain available until expended; and
       ``(2) to carry out section 9010--
       ``(A) $50,000,000 for fiscal year 2005; and
       ``(B) $30,000,000 for fiscal years 2006 through 2010.''.
       (c) Technical Amendments.--
       (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
     prec. 6901) is amended by striking the item relating to 
     section 9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''.

       (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
     U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
     inserting ``substances''.
       (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
     U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) 
     and (d) of this section'' and inserting ``subsections (c) and 
     (d)''.
       (4) Section 9004(a) of the Solid Waste Disposal Act (42 
     U.S.C. 6991c(a)) is amended in the second sentence by 
     striking ``referred to'' and all that follows and inserting 
     ``referred to in subparagraph (A) or (B), or both, of section 
     9001(2).''.
       (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
     6991d) is amended--
       (A) in subsection (a), by striking ``study taking'' and 
     inserting ``study, taking'';
       (B) in subsection (b)(1), by striking ``relevent'' and 
     inserting ``relevant''; and
       (C) in subsection (b)(4), by striking ``Evironmental'' and 
     inserting ``Environmental''.

     SEC. 211. RESTRICTIONS ON THE USE OF MTBE.

       (a) Findings.--Congress finds that--
       (1) since 1979, methyl tertiary butyl ether (referred to in 
     this section as ``MTBE'') has been used nationwide at low 
     levels in gasoline to replace lead as an octane booster or 
     anti-knocking agent;
       (2) Public Law 101-549 (commonly known as the ``Clean Air 
     Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) 
     established a fuel oxygenate standard under which 
     reformulated gasoline must contain at least 2 percent oxygen 
     by weight;
       (3) at the time of the adoption of the fuel oxygenate 
     standard, Congress was aware that--
       (A) significant use of MTBE could result from the adoption 
     of that standard; and
       (B) the use of MTBE would likely be important to the cost-
     effective implementation of that standard;
       (4) Congress is aware that gasoline and its component 
     additives have leaked from storage tanks, with consequences 
     for water quality;
       (5) the fuel industry responded to the fuel oxygenate 
     standard established by Public Law 101-549 by making 
     substantial investments in--
       (A) MTBE production capacity; and
       (B) systems to deliver MTBE-containing gasoline to the 
     marketplace;
       (6) when leaked or spilled into the environment, MTBE may 
     cause serious problems of drinking water quality;
       (7) in recent years, MTBE has been detected in water 
     sources throughout the United States;
       (8) MTBE can be detected by smell and taste at low 
     concentrations;
       (9) while small quantities of MTBE can render water 
     supplies unpalatable, the precise human health effects of 
     MTBE consumption at low levels are yet unknown as of the date 
     of enactment of this Act;
       (10) in the report entitled ``Achieving Clean Air and Clean 
     Water: The Report of the Blue Ribbon Panel on Oxygenates in 
     Gasoline'' and dated September 1999, Congress was urged--
       (A) to eliminate the fuel oxygenate standard;
       (B) to greatly reduce use of MTBE; and
       (C) to maintain the environmental performance of 
     reformulated gasoline;
       (11) Congress has--
       (A) reconsidered the relative value of MTBE in gasoline; 
     and
       (B) decided to eliminate use of MTBE as a fuel additive;
       (12) the timeline for elimination of use of MTBE as a fuel 
     additive must be established in a manner that achieves an 
     appropriate balance among the goals of--
       (A) environmental protection;
       (B) adequate energy supply; and
       (C) reasonable fuel prices; and
       (13) it is appropriate for Congress to provide some limited 
     transition assistance--

[[Page 12490]]

       (A) to merchant producers of MTBE who produced MTBE in 
     response to a market created by the oxygenate requirement 
     contained in the Clean Air Act (42 U.S.C. 7401 et seq.); and
       (B) for the purpose of mitigating any fuel supply problems 
     that may result from elimination of a widely-used fuel 
     additive.
       (b) Purposes.--The purposes of this section are--
       (1) to eliminate use of MTBE as a fuel oxygenate; and
       (2) to provide assistance to merchant producers of MTBE in 
     making the transition from producing MTBE to producing other 
     fuel additives.
       (c) Authority for Water Quality Protection From Fuels.--
     Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is 
     amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``fuel or fuel additive or'' after 
     ``Administrator any''; and
       (B) by striking ``air pollution which'' and inserting ``air 
     pollution, or water pollution, that'';
       (2) in paragraph (4)(B), by inserting ``or water quality 
     protection,'' after ``emission control,''; and
       (3) by adding at the end the following:
       ``(5) Restrictions on use of MTBE.--
       ``(A) In general.--Subject to subparagraph (E), not later 
     than 4 years after the date of enactment of this paragraph, 
     the use of methyl tertiary butyl ether in motor vehicle fuel 
     in any State other than a State described in subparagraph (C) 
     is prohibited.
       ``(B) Regulations.--The Administrator shall promulgate 
     regulations to effect the prohibition in subparagraph (A).
       ``(C) States that authorize use.--A State described in this 
     subparagraph is a State that submits to the Administrator a 
     notice that the State authorizes use of methyl tertiary butyl 
     ether in motor vehicle fuel sold or used in the State.
       ``(D) Publication of notice.--The Administrator shall 
     publish in the Federal Register each notice submitted by a 
     State under subparagraph (C).
       ``(E) Trace quantities.--In carrying out subparagraph (A), 
     the Administrator may allow trace quantities of methyl 
     tertiary butyl ether, not to exceed 0.5 percent by volume, to 
     be present in motor vehicle fuel in cases that the 
     Administrator determines to be appropriate.
       ``(6) MTBE merchant producer conversion assistance.--
       ``(A) In general.--
       ``(i) Grants.--The Secretary of Energy, in consultation 
     with the Administrator, may make grants to merchant producers 
     of methyl tertiary butyl ether in the United States to assist 
     the producers in the conversion of eligible production 
     facilities described in subparagraph (C) to the production 
     of--

       ``(I) iso-octane or alkylates, unless the Administrator, in 
     consultation with the Secretary of Energy, determines that 
     transition assistance for the production of iso-octane or 
     alkylates is inconsistent with the criteria specified in 
     subparagraph (B); and
       ``(II) any other fuel additive that meets the criteria 
     specified in subparagraph (B).

       ``(B) Criteria.--The criteria referred to in subparagraph 
     (A) are that--
       ``(i) use of the fuel additive is consistent with this 
     subsection;
       ``(ii) the Administrator has not determined that the fuel 
     additive may reasonably be anticipated to endanger public 
     health or the environment;
       ``(iii) the fuel additive has been registered and tested, 
     or is being tested, in accordance with the requirements of 
     this section; and
       ``(iv) the fuel additive will contribute to replacing 
     quantities of motor vehicle fuel rendered unavailable as a 
     result of paragraph (5).
       ``(C) Eligible production facilities.--A production 
     facility shall be eligible to receive a grant under this 
     paragraph if the production facility--
       ``(i) is located in the United States; and
       ``(ii) produced methyl tertiary butyl ether for consumption 
     in nonattainment areas during the period--

       ``(I) beginning on the date of enactment of this paragraph; 
     and
       ``(II) ending on the effective date of the prohibition on 
     the use of methyl tertiary butyl ether under paragraph (5).

       ``(D) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $250,000,000 
     for each of fiscal years 2005 through 2008.''.
       (d) No Effect on Law Concerning State Authority.--The 
     amendments made by subsection (c) have no effect on the law 
     in effect on the day before the date of enactment of this Act 
     concerning the authority of States to limit the use of methyl 
     tertiary butyl ether in motor vehicle fuel.

     SEC. 212. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR 
                   REFORMULATED GASOLINE.

       (a) Elimination.--
       (1) In general.--Section 211(k) of the Clean Air Act (42 
     U.S.C. 7545(k)) is amended--
       (A) in paragraph (2)--
       (i) in the second sentence of subparagraph (A), by striking 
     ``(including the oxygen content requirement contained in 
     subparagraph (B))'';
       (ii) by striking subparagraph (B); and
       (iii) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively;
       (B) in paragraph (3)(A), by striking clause (v); and
       (C) in paragraph (7)--
       (i) in subparagraph (A)--

       (I) by striking clause (i); and
       (II) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively; and

       (ii) in subparagraph (C)--

       (I) by striking clause (ii); and
       (II) by redesignating clause (iii) as clause (ii).

       (2) Applicability.--The amendments made by paragraph (1) 
     apply--
       (A) in the case of a State that has received a waiver under 
     section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)), 
     beginning on the date of enactment of this Act; and
       (B) in the case of any other State, beginning 270 days 
     after the date of enactment of this Act.
       (b) Maintenance of Toxic Air Pollutant Emission 
     Reductions.--Section 211(k)(1) of the Clean Air Act (42 
     U.S.C. 7545(k)(1)) is amended--
       (1) by striking ``Within 1 year after the enactment of the 
     Clean Air Act Amendments of 1990,'' and inserting the 
     following:
       ``(A) In general.--Not later than November 15, 1991,''; and
       (2) by adding at the end the following:
       ``(B) Maintenance of toxic air pollutant emissions 
     reductions from reformulated Gasoline.--
       ``(i) Definition of PADD.--In this subparagraph the term 
     `PADD' means a Petroleum Administration for Defense District.
       ``(ii) Regulations concerning emissions of toxic air 
     pollutants.--Not later than 270 days after the date of 
     enactment of this subparagraph, the Administrator shall 
     establish by regulation, for each refinery or importer (other 
     than a refiner or importer in a State that has received a 
     waiver under section 209(b) with respect to gasoline produced 
     for use in that State), standards for toxic air pollutants 
     from use of the reformulated gasoline produced or distributed 
     by the refiner or importer that maintain the reduction of the 
     average annual aggregate emissions of toxic air pollutants 
     for reformulated gasoline produced or distributed by the 
     refiner or importer during calendar years 2001 and 2002 (as 
     determined on the basis of data collected by the 
     Administrator with respect to the refiner or importer).
       ``(iii) Standards applicable to specific refineries or 
     importers.--

       ``(I) Applicability of standards.--For any calendar year, 
     the standards applicable to a refiner or importer under 
     clause (ii) shall apply to the quantity of gasoline produced 
     or distributed by the refiner or importer in the calendar 
     year only to the extent that the quantity is less than or 
     equal to the average annual quantity of reformulated gasoline 
     produced or distributed by the refiner or importer during 
     calendar years 2001 and 2002.
       ``(II) Applicability of other standards.--For any calendar 
     year, the quantity of gasoline produced or distributed by a 
     refiner or importer that is in excess of the quantity subject 
     to subclause (I) shall be subject to standards for emissions 
     of toxic air pollutants promulgated under subparagraph (A) 
     and paragraph (3)(B).

       ``(iv) Credit program.--The Administrator shall provide for 
     the granting and use of credits for emissions of toxic air 
     pollutants in the same manner as provided in paragraph (7).
       ``(v) Regional protection of toxics reduction baselines.--

       ``(I) In general.--Not later than 60 days after the date of 
     enactment of this subparagraph, and not later than April 1 of 
     each calendar year that begins after that date of enactment, 
     the Administrator shall publish in the Federal Register a 
     report that specifies, with respect to the previous calendar 
     year--

       ``(aa) the quantity of reformulated gasoline produced that 
     is in excess of the average annual quantity of reformulated 
     gasoline produced in 2001 and 2002; and
       ``(bb) the reduction of the average annual aggregate 
     emissions of toxic air pollutants in each PADD, based on 
     retail survey data or data from other appropriate sources.

       ``(II) Effect of failure to maintain aggregate toxics 
     reductions.--If, in any calendar year, the reduction of the 
     average annual aggregate emissions of toxic air pollutants in 
     a PADD fails to meet or exceed the reduction of the average 
     annual aggregate emissions of toxic air pollutants in the 
     PADD in calendar years 2001 and 2002, the Administrator, not 
     later than 90 days after the date of publication of the 
     report for the calendar year under subclause (I), shall--

       ``(aa) identify, to the maximum extent practicable, the 
     reasons for the failure, including the sources, volumes, and 
     characteristics of reformulated gasoline that contributed to 
     the failure; and
       ``(bb) promulgate revisions to the regulations promulgated 
     under clause (ii), to take effect not earlier than 180 days 
     but not later than 270 days after the date of promulgation, 
     to provide that, notwithstanding clause (iii)(II), all 
     reformulated gasoline produced or distributed at each refiner 
     or importer shall meet the standards applicable under clause 
     (iii)(I) beginning not later than April 1 of the calendar 
     year following publication

[[Page 12491]]

     of the report under subclause (I) and in each calendar year 
     thereafter.
       ``(vi) Regulations to control hazardous air pollutants from 
     motor vehicles and motor vehicle fuels.--Not later than July 
     1, 2005, the Administrator shall promulgate final regulations 
     to control hazardous air pollutants from motor vehicles and 
     motor vehicle fuels, as provided for in section 80.1045 of 
     title 40, Code of Federal Regulations (as in effect on the 
     date of enactment of this subparagraph).''.
       (c) Commingling.--
       (1) In general.--Section 211(k) of the Clean Air Act (42 
     U.S.C. 7545(k)) is amended by adding at the end the 
     following:
       ``(11) Commingling.--The regulations under paragraph (1) 
     shall permit the commingling at a retail station of 
     reformulated gasoline containing ethanol and reformulated 
     gasoline that does not contain ethanol if, each time such 
     commingling occurs--
       ``(A) the retailer notifies the Administrator before the 
     commingling, identifying the exact location of the retail 
     station and the specific tank in which the commingling will 
     take place; and
       ``(B) the retailer certifies that the reformulated gasoline 
     resulting from the commingling will meet all applicable 
     requirements for reformulated gasoline, including content and 
     emission performance standards.''.
       (d) Consolidation in Reformulated Gasoline Regulations.--
     Not later than 180 days after the date of enactment of this 
     Act, the Administrator of the Environmental Protection Agency 
     shall revise the reformulated gasoline regulations under 
     subpart D of part 80 of title 40, Code of Federal 
     Regulations, to consolidate the regulations applicable to 
     VOC-Control Regions 1 and 2 under section 80.41 of that title 
     by eliminating the less stringent requirements applicable to 
     gasoline designated for VOC-Control Region 2 and instead 
     applying the more stringent requirements applicable to 
     gasoline designated for VOC-Control Region 1.
       (e) Savings Clause.--
       (1) In general.--Nothing in this section or any amendment 
     made by this section affects or prejudices any legal claim or 
     action with respect to regulations promulgated by the 
     Administrator before the date of enactment of this Act 
     regarding--
       (A) emissions of toxic air pollutants from motor vehicles; 
     or
       (B) the adjustment of standards applicable to a specific 
     refinery or importer made under those regulations.
       (2) Adjustment of standards.--
       (A) Applicability.--The Administrator may apply any 
     adjustments to the standards applicable to a refinery or 
     importer under subparagraph (B)(iii)(I) of section 211(k)(1) 
     of the Clean Air Act (as added by subsection (b)(2)), except 
     that--
       (i) the Administrator shall revise the adjustments to be 
     based only on calendar years 2001 and 2002;
       (ii) any such adjustment shall not be made at a level below 
     the average percentage of reductions of emissions of toxic 
     air pollutants for reformulated gasoline supplied to PADD I 
     during calendar years 2001 and 2002; and
       (iii) in the case of an adjustment based on toxic air 
     pollutant emissions from reformulated gasoline significantly 
     below the national annual average emissions of toxic air 
     pollutants from all reformulated gasoline--

       (I) the Administrator may revise the adjustment to take 
     account of the scope of the prohibition on methyl tertiary 
     butyl ether imposed by paragraph (5) of section 211(c) of the 
     Clean Air Act (as added by section 211(c)); and
       (II) any such adjustment shall require the refiner or 
     importer, to the maximum extent practicable, to maintain the 
     reduction achieved during calendar years 2001 and 2002 in the 
     average annual aggregate emissions of toxic air pollutants 
     from reformulated gasoline produced or distributed by the 
     refiner or importer.

     SEC. 213. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS 
                   AND FUEL ADDITIVES.

       Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
     amended--
       (1) in paragraph (2)--
       (A) by striking ``may also'' and inserting ``shall, on a 
     regular basis,''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) to conduct tests to determine potential public health 
     and environmental effects of the fuel or additive (including 
     carcinogenic, teratogenic, or mutagenic effects); and''; and
       (2) by adding at the end the following:
       ``(4) Study on certain fuel additives and blendstocks.--
       ``(A) In general.--Not later than 2 years after the date of 
     enactment of this paragraph, the Administrator shall--
       ``(i) conduct a study on the effects on public health 
     (including the effects on children, pregnant women, minority 
     or low-income communities, and other sensitive populations), 
     air quality, and water resources of increased use of, and the 
     feasibility of using as substitutes for methyl tertiary butyl 
     ether in gasoline--

       ``(I) ethyl tertiary butyl ether;
       ``(II) tertiary amyl methyl ether;
       ``(III) di-isopropyl ether;
       ``(IV) tertiary butyl alcohol;
       ``(V) other ethers and heavy alcohols, as determined by 
     then Administrator;
       ``(VI) ethanol;
       ``(VII) iso-octane; and
       ``(VIII) alkylates; and

       ``(ii) conduct a study on the effects on public health 
     (including the effects on children, pregnant women, minority 
     or low-income communities, and other sensitive populations), 
     air quality, and water resources of the adjustment for 
     ethanol-blended reformulated gasoline to the volatile organic 
     compounds performance requirements that are applicable under 
     paragraphs (1) and (3) of section 211(k); and
       ``(iii) submit to the Committee on Environment and Public 
     Works of the Senate and the Committee on Energy and Commerce 
     of the House of Representatives a report describing the 
     results of the studies under clauses (i) and (ii).
       ``(B) Contracts for study.--In carrying out this paragraph, 
     the Administrator may enter into 1 or more contracts with 
     nongovernmental entities such as--
       ``(i) the national energy laboratories; and
       ``(ii) institutions of higher education (as defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001)).''.

     SEC. 214. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) (as 
     amended by section 205(a)) is amended by inserting after 
     subsection (p) the following:
       ``(q) Analyses of Motor Vehicle Fuel Changes and Emissions 
     Model.--
       ``(1) Anti-backsliding analysis.--
       ``(A) Draft analysis.--Not later than 4 years after the 
     date of enactment of this paragraph, the Administrator shall 
     publish for public comment a draft analysis of the changes in 
     emissions of air pollutants and air quality due to the use of 
     motor vehicle fuel and fuel additives resulting from 
     implementation of the amendments made by the Federal 
     Reformulated Fuels Act of 2005.
       ``(B) Final analysis.--After providing a reasonable 
     opportunity for comment but not later than 5 years after the 
     date of enactment of this paragraph, the Administrator shall 
     publish the analysis in final form.
       ``(2) Emissions model.--For the purposes of this section, 
     not later than 4 years after the date of enactment of this 
     paragraph, the Administrator shall develop and finalize an 
     emissions model that reflects, to the maximum extent 
     practicable, the effects of gasoline characteristics or 
     components on emissions from vehicles in the motor vehicle 
     fleet during calendar year 2007.
       ``(3) Permeation effects study.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Administrator shall conduct 
     a study, and report to Congress the results of the study, on 
     the effects of ethanol content in gasoline on permeation, the 
     process by which fuel molecules migrate through the 
     elastomeric materials (rubber and plastic parts) that make up 
     the fuel and fuel vapor systems of a motor vehicle.
       ``(B) Evaporative emissions.--The study shall include 
     estimates of the increase in total evaporative emissions 
     likely to result from the use of gasoline with ethanol 
     content in a motor vehicle, and the fleet of motor vehicles, 
     due to permeation.''.

     SEC. 215. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE 
                   PROGRAM.

       Section 211(k)(6) of the Clean Air Act (42 U.S.C. 
     7545(k)(6)) is amended--
       (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
     inserting the following:
       ``(6) Opt-in areas.--
       ``(A) Classified areas.--
       ``(i) In general.--Upon'';
       (2) in subparagraph (B), by striking ``(B) If'' and 
     inserting the following:
       ``(ii) Effect of insufficient domestic capacity to produce 
     reformulated Gasoline.--If'';
       (3) in subparagraph (A)(ii) (as redesignated by paragraph 
     (2))--
       (A) in the first sentence, by striking ``subparagraph (A)'' 
     and inserting ``clause (i)''; and
       (B) in the second sentence, by striking ``this paragraph'' 
     and inserting ``this subparagraph''; and
       (4) by adding at the end the following:
       ``(B) Ozone transport Region.--
       ``(i) Application of prohibition.--

       ``(I) In general.--On application of the Governor of a 
     State in the ozone transport region established by section 
     184(a), the Administrator, not later than 180 days after the 
     date of receipt of the application, shall apply the 
     prohibition specified in paragraph (5) to any area in the 
     State (other than an area classified as a marginal, moderate, 
     serious, or severe ozone nonattainment area under subpart 2 
     of part D of title I) unless the Administrator determines 
     under clause (iii) that there is insufficient capacity to 
     supply reformulated gasoline.
       ``(II) Publication of application.--As soon as practicable 
     after the date of receipt of an application under subclause 
     (I), the Administrator shall publish the application in the 
     Federal Register.

       ``(ii) Period of applicability.--Under clause (i), the 
     prohibition specified in paragraph (5) shall apply in a 
     State--

       ``(I) commencing as soon as practicable but not later than 
     2 years after the date of approval by the Administrator of 
     the application of the Governor of the State; and

[[Page 12492]]

       ``(II) ending not earlier than 4 years after the 
     commencement date determined under subclause (I).

       ``(iii) Extension of commencement date Based on 
     insufficient capacity.--

       ``(I) In general.--If, after receipt of an application from 
     a Governor of a State under clause (i), the Administrator 
     determines, on the Administrator's own motion or on petition 
     of any person, after consultation with the Secretary of 
     Energy, that there is insufficient capacity to supply 
     reformulated gasoline, the Administrator, by regulation--

       ``(aa) shall extend the commencement date with respect to 
     the State under clause (ii)(I) for not more than 1 year; and
       ``(bb) may renew the extension under item (aa) for 2 
     additional periods, each of which shall not exceed 1 year.

       ``(II) Deadline for action on petitions.--The Administrator 
     shall act on any petition submitted under subclause (I) not 
     later than 180 days after the date of receipt of the 
     petition.''.

     SEC. 216. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

       Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 
     7545(c)(4)(C)) is amended--
       (1) by striking ``(C) A State'' and inserting the 
     following:
       ``(C) Authority of State to control fuels and fuel 
     additives for reasons of necessity.--
       ``(i) In general.--A State''; and
       (2) by adding at the end the following:
       ``(ii) Enforcement by the Administrator.--In any case in 
     which a State prescribes and enforces a control or 
     prohibition under clause (i), the Administrator, at the 
     request of the State, shall enforce the control or 
     prohibition as if the control or prohibition had been adopted 
     under the other provisions of this section.''.

     SEC. 217. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

       (a) Study.--
       (1) In general.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Energy shall jointly 
     conduct a study of Federal, State, and local requirements 
     concerning motor vehicle fuels, including--
       (A) requirements relating to reformulated gasoline, 
     volatility (measured in Reid vapor pressure), oxygenated 
     fuel, and diesel fuel; and
       (B) other requirements that vary from State to State, 
     region to region, or locality to locality.
       (2) Required elements.--The study shall assess--
       (A) the effect of the variety of requirements described in 
     paragraph (1) on the supply, quality, and price of motor 
     vehicle fuels available to the consumer;
       (B) the effect of the requirements described in paragraph 
     (1) on achievement of--
       (i) national, regional, and local air quality standards and 
     goals; and
       (ii) related environmental and public health protection 
     standards and goals (including the protection of children, 
     pregnant women, minority or low-income communities, and other 
     sensitive populations);
       (C) the effect of Federal, State, and local motor vehicle 
     fuel regulations, including multiple motor vehicle fuel 
     requirements, on--
       (i) domestic refiners;
       (ii) the fuel distribution system; and
       (iii) industry investment in new capacity;
       (D) the effect of the requirements described in paragraph 
     (1) on emissions from vehicles, refiners, and fuel handling 
     facilities;
       (E) the feasibility of developing national or regional 
     motor vehicle fuel slates for the 48 contiguous States that, 
     while protecting and improving air quality at the national, 
     regional, and local levels, could--
       (i) enhance flexibility in the fuel distribution 
     infrastructure and improve fuel fungibility;
       (ii) reduce price volatility and costs to consumers and 
     producers;
       (iii) provide increased liquidity to the gasoline market; 
     and
       (iv) enhance fuel quality, consistency, and supply; and
       (F) the feasibility of providing incentives, and the need 
     for the development of national standards necessary, to 
     promote cleaner burning motor vehicle fuel.
       (b) Report.--
       (1) In general.--Not later than June 1, 2008, the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Energy shall submit to Congress a report on the 
     results of the study conducted under subsection (a).
       (2) Recommendations.--
       (A) In general.--The report shall contain recommendations 
     for legislative and administrative actions that may be 
     taken--
       (i) to improve air quality;
       (ii) to reduce costs to consumers and producers; and
       (iii) to increase supply liquidity.
       (B) Required considerations.--The recommendations under 
     subparagraph (A) shall take into account the need to provide 
     advance notice of required modifications to refinery and fuel 
     distribution systems in order to ensure an adequate supply of 
     motor vehicle fuel in all States.
       (3) Consultation.--In developing the report, the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Energy shall consult with--
       (A) the Governors of the States;
       (B) automobile manufacturers;
       (C) State and local air pollution control regulators;
       (D) public health experts;
       (E) motor vehicle fuel producers and distributors; and
       (F) the public.

     SEC. 218. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

       (a) In General.--Subject to the availability of 
     appropriations under subsection (d), the Administrator of the 
     Environmental Protection Agency shall, in consultation with 
     the Secretary of Agriculture and the Biomass Research and 
     Development Technical Advisory Committee established under 
     section 306 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note), establish a 
     program, to be known as the ``Advanced Biofuel Technologies 
     Program'', to demonstrate advanced technologies for the 
     production of alternative transportation fuels.
       (b) Priority.--In carrying out the program under subsection 
     (a), the Administrator shall give priority to projects that 
     enhance the geographical diversity of alternative fuels 
     production and utilize feedstocks that represent 10 percent 
     or less of ethanol or biodiesel fuel production in the United 
     States during the previous fiscal year.
       (c) Demonstration Projects.--
       (1) In general.--As part of the program under subsection 
     (a), the Administrator shall fund demonstration projects--
       (A) to develop not less than 4 different conversion 
     technologies for producing cellulosic biomass ethanol; and
       (B) to develop not less than 5 technologies for coproducing 
     value-added bioproducts (such as fertilizers, herbicides, and 
     pesticides) resulting from the production of biodiesel fuel.
       (2) Administration.--Demonstration projects under this 
     subsection shall be--
       (A) conducted based on a merit-reviewed, competitive 
     process; and
       (B) subject to the cost-sharing requirements of section 
     1002.
       (d) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this section $110,000,000 for 
     each of fiscal years 2005 through 2009.

     SEC. 219. SUGAR CANE ETHANOL PROGRAM.

       (a) Definition of Program.--In this section, the term 
     ``program'' means the Sugar Cane Ethanol Program established 
     by subsection (b).
       (b) Establishment.--There is established within the 
     Environmental Protection Agency a program to be known as the 
     ``Sugar Cane Ethanol Program''.
       (c) Project.--
       (1) In general.--Subject to the availability of 
     appropriations under subsection (d), in carrying out the 
     program, the Administrator of the Environmental Protection 
     Agency shall establish a project that is--
       (A) carried out in multiple States--
       (i) in each of which is produced cane sugar that is 
     eligible for loans under section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272), or a similar subsequent authority; and
       (ii) at the option of each such State, that have an 
     incentive program that requires the use of ethanol in the 
     State; and
       (B) designed to study the production of ethanol from cane 
     sugar, sugarcane, and sugarcane byproducts.
       (2) Requirements.--A project described in paragraph (1) 
     shall--
       (A) be limited to the production of ethanol in the States 
     of Florida, Louisiana, Texas, and Hawaii in a way similar to 
     the existing program for the processing of corn for ethanol 
     to demonstrate that the process may be applicable to cane 
     sugar, sugarcane, and sugarcane byproducts;
       (B) include information on the ways in which the scale of 
     production may be replicated once the sugar cane industry has 
     located sites for, and constructed, ethanol production 
     facilities; and
       (C) not last more than 3 years.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $36,000,000, to 
     remain available until expended.
                                 ______
                                 
  SA 780. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 135, between lines 22 and 23, insert the following:
       (2) Cellulosic biomass-derived liquid alternative fuel.--
       (A) In general.--The term ``cellulosic biomass-derived 
     liquid alternative fuel'' means an alternative fuel (as 
     defined in section 301 of the Energy Policy Act of 1992 (42 
     U.S.C. 13211)), or a blending component for alternate fuel, 
     that--
       (i) is derived from cellulosic biomass feedstock or waste; 
     and
       (ii) remains substantially in a liquid phase at room 
     temperature and atmospheric pressure.
       (B) Certain liquid alternative fuels.--For any liquid 
     alternative fuel that contains a component that is not 
     derived from a cellulosic biomass feedstock or waste, only 
     the

[[Page 12493]]

     portion of the fuel that is derived from a cellulosic biomass 
     feedstock shall be considered to be a biomass-derived liquid 
     alternative fuel.
       (3) Cellulosic biomass feedstock.--The term ``cellulosic 
     biomass feedstock'' means--
       (A) dedicated energy crops and trees;
       (B) wood and wood residues;
       (C) plants;
       (D) grasses;
       (E) agricultural residues;
       (F) fibers;
       (G) animal wastes and other waste materials; and
       (H) municipal solid waste.
       On page 135, line 23, strike ``(2)'' and insert ``(4)''.
       On page 137, line 1, strike ``(3)'' and insert ``(5)''.
       On page 137, strike lines 7 through 13 and insert the 
     following:
       (6) Waste.--The term ``waste'' means--
       (A) animal wastes, including poultry fats and poultry 
     wastes, and other waste materials; or
       (B) municipal solid waste (as defined in section 1004 of 
     the Solid Waste Disposal Act (42 U.S.C. 6903)).
       On page 150, line 2, insert ``and cellulosic biomass-
     derived liquid alternative fuels'' after ``ethanol''.
       On page 150, line 10, insert ``or cellulosic biomass-
     derived liquid alternative fuels'' after ``ethanol''.
       On page 150, line 13, insert ``or cellulosic biomass-
     derived liquid alternative fuels'' after ``ethanol''.
       On page 150, line 21, insert ``or cellulosic biomass-
     derived liquid alternative fuels'' after ``ethanol''.
       On page 158, strike lines 15 through 17 and insert the 
     following:
       (A) to develop not less than 4 different conversion 
     technologies for producing cellulosic biomass ethanol and 
     cellulosic biomass-derived liquid alternative fuel (as 
     defined in section 204(a)); and
                                 ______
                                 
  SA 781. Mrs. Boxer proposed an amendment to amendment SA 779 proposed 
by Mr. Domenici (for himself, Mr. Thune, Mr. Harkin, Mr. Lugar, Mr. 
Dorgan, Mr. Frist, Mr. Obama, Mr. Grassley, Mr. Bayh, Mr. Bond, Mr. 
Nelson of Nebraska, Mr. Brownback, Mr. Johnson, Mr. Hagel, Mr. Conrad, 
Mr. DeWine, Mrs. Dayton, Mr. Talent, Ms. Stabenow, Mr. Coleman, Mr. 
Salazar, and Mr. Durbin) to the bill H.R. 6, Reserved; as follows:

       Beginning on page 20, strike line 25 and all that follows 
     through page 22, line 3.
                                 ______
                                 
  SA 782. Mr. SCHUMER proposed an amendment to amendment SA 779 
proposed by Mr. Domenici (for himself, Mr. Thune, Mr. Harkin, Mr. 
Lugar, Mr. Dorgan, Mr. Frist, Mr. Obama, Mr. Grassley, Mr. Bayh, Mr. 
Bond, Mr. Nelson of Nebraska, Mr. Brownback, Mr. Johnson, Mr. Hagel, 
Mr. Conrad, Mr. DeWine, Mr. Dayton, Mr. Talent, Ms. Stabenow, Mr. 
Coleman, Mr. Salazar, and Mr. Durbin) to the bill H.R. 6, Reserved; as 
follows:

       Strike subtitle B of the amendment.
                                 ______
                                 
  SA 783. Mr. NELSON of Florida (for himself, Mr. Martinez, Mr. 
Corzine, Mrs. Boxer, Mr. Lautenberg, Mrs. Feinstein, Mr. Kerry, and 
Mrs. Dole) submitted an amendment intended to be proposed by him to the 
bill H.R. 6, Reserved; which was ordered to lie on the table; as 
follows:
       Beginning on page 264, strike line 1 and all that follows 
     through page 265, line 12.

                          ____________________