[House Report 107-162]
[From the U.S. Government Publishing Office]



107th Congress                                            Rept. 107-162
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
            ENERGY ADVANCEMENT AND CONSERVATION ACT OF 2001

                                _______
                                

 July 25, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2587]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2587) to enhance energy conservation, provide 
for security and diversity in the energy supply for the 
American people, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    46
Background and Need for Legislation..............................    46
Hearings.........................................................    49
Committee Consideration..........................................    52
Committee Votes..................................................    52
Committee Oversight Findings.....................................    71
Statement of General Performance Goals and Objectives............    71
New Budget Authority, Entitlement Authority, and Tax Expenditures    71
Committee Cost Estimate..........................................    71
Congressional Budget Office Estimate.............................    71
Federal Mandates Statement.......................................    71
Advisory Committee Statement.....................................    71
Constitutional Authority Statement...............................    71
Applicability to Legislative Branch..............................    71
Exchange of Committee Correspondence.............................    72
Section-by-Section Analysis of the Legislation...................    73
Changes in Existing Law Made by the Bill, as Reported............    91
Additional Views.................................................   135

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

Sec. 101. Authorization of appropriations.

         Subtitle B--Federal Leadership in Energy Conservation

Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal 
energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility 
incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Federal Energy Bank.
Sec. 126. Advanced building efficiency testbed.
Sec. 127. Use of interval data in Federal buildings.
Sec. 128. Review of Energy Savings Performance Contract Program.
Sec. 129. Capitol complex.

                       Subtitle C--State Programs

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

          Subtitle D--Energy Efficiency for Consumer Products

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

                 Subtitle E--Energy Efficient Vehicles

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

                      Subtitle F--Other Provisions

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

                   TITLE II--AUTOMOBILE FUEL ECONOMY

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

                       TITLE III--NUCLEAR ENERGY

                     Subtitle A--General Provisions

Sec. 301. Budget status of Nuclear Waste Fund.
Sec. 302. License period.
Sec. 303. Cost recovery from Government agencies.
Sec. 304. Depleted uranium hexafluoride.
Sec. 305. Nuclear Regulatory Commission meetings.

                Subtitle B--Domestic Uranium Fuel Cycle

Sec. 311. Portsmouth cold standby.
Sec. 312. Paducah funding.
Sec. 313. Research and development.
Sec. 314. Short-term reliability of domestic uranium enrichment 
capacity.
Sec. 315. Cooperative research and development and special 
demonstration projects for the uranium mining industry.
Sec. 316. Maintenance of a viable domestic uranium conversion industry.
Sec. 317. Prohibition of commercial sales of uranium by the United 
States until 2009.
Sec. 318. Paducah decontamination and decommissioning plan.

                     TITLE IV--HYDROELECTRIC ENERGY

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

                          TITLE V--CLEAN COAL

Sec. 501. Short title.
Sec. 502. Findings.

      Subtitle A--Accelerated Clean Coal Power Production Program

Sec. 511. Definitions.
Sec. 512. Cost and performance goals.
Sec. 513. Study.
Sec. 514. Production and generation of coal-based power.
Sec. 515. Authorization of appropriations.
Sec. 516. Clean coal power initiative.
Sec. 517. Financial assistance.

Subtitle B--Credit for Emission Reductions and Efficiency Improvements 
        in Existing Coal-Based Electricity Generation Facilities

Sec. 521. Credit for investment in qualifying clean coal technology.
Sec. 522. Credit for production from a qualifying clean coal technology 
unit.

 Subtitle C--Incentives for Early Commercial Applications of Advanced 
                        Clean Coal Technologies

Sec. 531. Credit for investment in qualifying advanced clean coal 
technology.
Sec. 532. Credit for production from qualifying advanced clean coal 
technology.
Sec. 533. Risk pool for qualifying advanced clean coal technology.

    Subtitle D--Treatment of Certain Governmental and Other Entities

Sec. 541. Credits for certain organizations and governmental units.

                            TITLE VI--FUELS

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

                      TITLE VII--RENEWABLE ENERGY

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

                     TITLE VIII--PIPELINE INTEGRITY

                     Subtitle A--Pipeline Integrity

Sec. 801. Program for pipeline integrity research, development, and 
demonstration.
Sec. 802. Pipeline Integrity Technical Advisory Committee.
Sec. 803. Authorization of appropriations.

                  Subtitle B-Other Pipeline Provisions

Sec. 811. Prohibition on certain pipeline route.
Sec. 812. Historic pipelines.

                   TITLE IX--MISCELLANEOUS PROVISIONS

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

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

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

         Subtitle B--Federal Leadership in Energy Conservation

SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

  (a) Purpose.--Section 542 of the National Energy Conservation Policy 
Act (42 U.S.C. 8252) is amended by inserting ``, and generally to 
promote the production, supply, and marketing of energy efficiency 
products and services and the production, supply, and marketing of 
unconventional and renewable energy resources'' after ``by the Federal 
Government''.
  (b) Energy Management Requirements.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended as follows:
          (1) In subsection (a)(1), by striking ``during the fiscal 
        year 1995'' and all that follows through the end and inserting 
        ``during--
  ``(1) fiscal year 1995 is at least 10 percent;
  ``(2) fiscal year 2000 is at least 20 percent;
  ``(3) fiscal year 2005 is at least 30 percent;
  ``(4) fiscal year 2010 is at least 35 percent;
  ``(5) fiscal year 2015 is at least 40 percent; and
  ``(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its Federal 
buildings in use during fiscal year 1985. To achieve the reductions 
required by this paragraph, an agency shall make maximum practicable 
use of energy efficiency products and services and unconventional and 
renewable energy resources, using guidelines issued by the Secretary 
under subsection (d) of this section.''.
          (2) In subsection (d), by inserting ``Such guidelines shall 
        include appropriate model technical standards for energy 
        efficiency and unconventional and renewable energy resources 
        products and services. Such standards shall reflect, to the 
        extent practicable, evaluation of both currently marketed and 
        potentially marketable products and services that could be used 
        by agencies to improve energy efficiency and increase 
        unconventional and renewable energy resources.'' after 
        ``implementation of this part.''.
          (3) By adding at the end the following new subsection:
  ``(e) Studies.--To assist in developing the guidelines issued by the 
Secretary under subsection (d) and in furtherance of the purposes of 
this section, the Secretary shall conduct studies to identify and 
encourage the production and marketing of energy efficiency products 
and services and unconventional and renewable energy resources. To 
conduct such studies, there are authorized to be appropriated to the 
Secretary $20,000,000 for each of the fiscal years 2003 through 
2010.''.
  (c) Definition.--Section 551 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259) is amended as follows:
          (1) By striking ``and'' at the end of paragraph (8).
          (2) By striking the period at the end of paragraph (9) and 
        inserting ``; and''.
          (3) By adding at the end the following new paragraph:
          ``(10) the term `unconventional and renewable energy 
        resources' includes renewable energy sources, hydrogen, fuel 
        cells, cogeneration, combined heat and power, heat recovery 
        (including by use of a Stirling heat engine), and distributed 
        generation.''.
  (d) Exclusions From Requirement.--The National Energy Conservation 
Policy Act (42 U.S.C. 7201 and following) is amended as follows:
          (1) In section 543(a)--
                  (A) by striking ``(1) Subject to paragraph (2)'' and 
                inserting ``Subject to subsection (c)''; and
                  (B) by striking ``(2) An agency'' and all that 
                follows through ``such exclusion.''.
          (2) By amending subsection (c) of such section 543 to read as 
        follows:
  ``(c) Exclusions.--(1) A Federal building may be excluded from the 
requirements of subsections (a) and (b) only if--
          ``(A) the President declares the building to require 
        exclusion for national security reasons; and
          ``(B) the agency responsible for the building has--
                  ``(i) completed and submitted all federally required 
                energy management reports; and
                  ``(ii) achieved compliance with the energy efficiency 
                requirements of this Act, the Energy Policy Act of 
                1992, Executive Orders, and other Federal law;
                  ``(iii) implemented all practical, life cycle cost-
                effective projects in the excluded building.
  ``(2) The President shall only declare buildings described in 
paragraph (1)(A) to be excluded, not ancillary or nearby facilities 
that are not in themselves national security facilities.''.
          (3) In section 548(b)(1)(A)--
                  (A) by striking ``copy of the''; and
                  (B) by striking ``sections 543(a)(2) and 543(c)(3)'' 
                and inserting ``section 543(c)''.
  (e) Acquisition Requirement.--Section 543(b) of such Act is amended--
          (1) in paragraph (1), by striking ``(1) Not'' and inserting 
        ``(1) Except as provided in paragraph (5), not''; and
          (2) by adding at the end the following new paragraph:
  ``(5)(A)(i) Agencies shall select only Energy Star products when 
available when acquiring energy-using products. For product groups 
where Energy Star labels are not yet available, agencies shall select 
products that are in the upper 25 percent of energy efficiency as 
designated by FEMP. The Secretary of Energy shall develop guidelines 
within 180 days after the enactment of this paragraph for exemptions to 
this section when equivalent products do not exist, are impractical, or 
do not meet the agency mission requirements.
  ``(ii) The Administrator of the General Services Administration and 
the Secretary of Defense (acting through the Defense Logistics Agency), 
with assistance from the Administrator of the Environmental Protection 
Agency and the Secretary of Energy, shall create clear catalogue 
listings that designate Energy Star products in both print and 
electronic formats. After any existing federal inventories are 
exhausted, Administrator of the General Services Administration and the 
Secretary of Defense (acting through the Defense Logistics Agency) 
shall only replace inventories with energy-using products that are 
Energy Star, products that are rated in the top 25 percent of energy 
efficiency, or products that are exempted as designated by FEMP and 
defined in clause (i).
  ``(iii) Agencies shall incorporate energy-efficient criteria 
consistent with Energy Star and other FEMP designated energy efficiency 
levels into all guide specifications and project specifications 
developed for new construction and renovation, as well as into product 
specification language developed for Basic Ordering Agreements, Blanket 
Purchasing Agreements, Government Wide Acquisition Contracts, and all 
other purchasing procedures.
  ``(iv) The legislative branch shall be subject to this subparagraph 
to the same extent and in the same manner as are the Federal agencies 
referred to in section 521(1).
  ``(B) Not later than 6 months after the date of the enactment of this 
paragraph, the Secretary of Energy shall establish guidelines defining 
the circumstances under which an agency shall not be required to comply 
with subparagraph (A). Such circumstances may include the absence of 
Energy Star products, systems, or designs that serve the purpose of the 
agency, issues relating to the compatibility of a product, system, or 
design with existing buildings or equipment, and excessive cost 
compared to other available and appropriate products, systems, or 
designs.
  ``(C) Subparagraph (A) shall apply to agency acquisitions occurring 
on or after October 1, 2002.''.
  (f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is amended by 
adding at the end the following new subsection:
  ``(f) Metering.--(1) By October 1, 2004, all Federal buildings 
including buildings owned by the legislative branch and the Federal 
court system and other energy-using structures shall be metered or 
submetered in accordance with guidelines established by the Secretary 
under paragraph (2).
  ``(2) Not later than 6 months after the date of the enactment of this 
subsection, the Secretary, in consultation with representatives from 
the metering industry, energy services industry, national laboratories, 
colleges of higher education, and federal facilities energy managers, 
shall establish guidelines for agencies to carry out paragraph (1). 
Such guidelines shall take into consideration each of the following:
          ``(A) Cost.
          ``(B) Resources, including personnel, required to maintain, 
        interpret, and report on data so that the meters are 
        continually reviewed.
          ``(C) Energy management potential.
          ``(D) Energy savings.
          ``(E) Utility contract aggregation.
          ``(F) Savings from operations and maintenance.
  ``(3) Any building excluded under subsection (c) shall be 
individually metered or submetered as the Secretary determines 
necessary.''.
  (g) Retention of Energy Savings.--Section 546 of such Act (42 U.S.C. 
8256) is amended by adding at the end the following new subsection:
  ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Such funds may be used only for energy 
efficiency or unconventional and renewable energy resources 
projects.''.
  (h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is amended as 
follows:
          (1) In subsection (a)--
                  (A) by inserting ``in accordance with guidelines 
                established by and'' after ``to the Secretary,'';
                  (B) by striking ``and'' at the end of paragraph (1);
                  (C) by striking the period at the end of paragraph 
                (2) and inserting a semicolon; and
                  (D) by adding at the end the following new 
                paragraphs:
          ``(3) an energy emergency response plan developed by the 
        agency;
          ``(4) the quantity, and a description of, products, systems, 
        and designs acquired by the agency that are not acquired as 
        provided in section 543(b)(5)(A); and
          ``(5) the percentage of the Agency's capital expenditures 
        that are used for energy efficiency and unconventional and 
        renewable energy resources capital improvements.''.
          (2) In subsection (b)--
                  (A) by striking ``and'' at the end of paragraph (3);
                  (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                  (C) by adding at the end the following new paragraph:
          ``(5) all information transmitted to the Secretary under 
        subsection (a).''.
          (3) By amending subsection (c) to read as follows:
  ``(c) Agency Reports to Congress.--Each agency shall annually report 
to the Congress, as part of the agency's annual budget request, on all 
of the agency's activities implementing any Federal energy management 
requirement.''.
  (i) Inspector General Energy Audits.--Section 160(c) of the Energy 
Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by striking ``is 
encouraged to conduct periodic'' and inserting ``shall conduct 
periodic''.
  (j) Federal Energy Management Reviews.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at 
the end the following:
  ``(g) Priority Response Reviews.--Each agency shall--
          ``(1) not later than 9 months after the date of the enactment 
        of this subsection, undertake a comprehensive review of all 
        practicable measures for--
                  ``(A) increasing energy and water conservation, and
                  ``(B) using renewable energy sources; and
          ``(2) not later than 180 days after completing the review, 
        implement measures to achieve not less than 50 percent of the 
        potential efficiency and renewable savings identified in the 
        review.''.

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

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

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

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

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

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

SEC. 125. FEDERAL ENERGY BANK.

  (a) Definitions.--In this section:
          (1) Agency.--The term ``agency'' means each of the following:
                  (A) An Executive agency (as defined in section 105 of 
                title 5, United States Code, except that the term also 
                includes the United States Postal Service and the 
                United States Patent and Trademark Office).
                  (B) Congress and any other entity in the legislative 
                branch.
                  (C) A court and any other entity in the judicial 
                branch.
          (2) Bank.--The term ``Bank'' means the Federal Energy Bank 
        established by subsection (b).
          (3) Energy efficiency project.--The term ``energy efficiency 
        project'' means a project that assists an agency in meeting or 
        exceeding the energy efficiency requirements of--
                  (A) part 3 of title V of the National Energy 
                Conservation Policy Act (42 U.S.C. 8251 et seq.);
                  (B) subtitle F of title I of the Energy Policy Act of 
                1992 and the amendments made by that subtitle (106 
                Stat. 2843); and
                  (C) applicable Executive orders, including Executive 
                Order Nos. 12759 and 13123.
        Such term shall include water conservation and renewable energy 
        projects.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (5) Total utility payments.--The term ``total utility 
        payments'' means payments made to supply electricity, natural 
        gas, water, and any other form of energy to provide the 
        heating, ventilation, air conditioning, lighting, and other 
        energy needs of an agency facility.
  (b) Establishment of Bank.--
          (1) In general.--There is established in the Treasury of the 
        United States a trust fund to be known as the ``Federal Energy 
        Bank'', consisting of--
                  (A) such amounts as are appropriated to the Bank 
                under subsection (f);
                  (B) such amounts as are transferred to the Bank under 
                paragraph (2);
                  (C) such amounts as are repaid to the Bank under 
                subsection (c)(2)(D); and
                  (D) any interest earned on investment of amounts in 
                the Bank under paragraph (3).
          (2) Transfers to bank.--
                  (A) In general.--At the beginning of each of fiscal 
                years 2002, 2003, and 2004, each agency shall transfer 
                to the Secretary of the Treasury, for deposit in the 
                Bank, an amount equal to 5 percent of the total utility 
                payments paid by the agency in the preceding fiscal 
                year.
                  (B) Utilities paid for as part of rental payments.--
                The Secretary shall by regulation establish a formula 
                by which the appropriate portion of a rental payment 
                that covers the cost of utilities shall be considered 
                to be a utility payment for the purposes of 
                subparagraph (A).
          (3) Investment of funds.--The Secretary of the Treasury shall 
        invest such portion of funds in the Bank as is not, in the 
        Secretary's judgment, required to meet current withdrawals. 
        Investments may be made only in interest-bearing obligations of 
        the United States.
  (c) Loans From the Bank.--
          (1) In general.--The Secretary of the Treasury shall transfer 
        from the Bank to the Secretary such amounts as are appropriated 
        to carry out the loan program under paragraph (2).
          (2) Loan program.--
                  (A) In general.--In accordance with subsection (d), 
                the Secretary, in consultation with the Secretary of 
                Defense, Administrator of the General Services 
                Administration and the Office of Administration and 
                Budget within the Executive Office of the President, 
                shall establish a program to loan amounts from the Bank 
                to any agency that submits an application satisfactory 
                to the Secretary in order to finance an energy 
                efficiency project. The Bank is authorized to begin 
                operation in fiscal year 2003 and receive and approve 
                funding for energy efficiency projects subject to 
                funding availability in fiscal year 2003.
                  (B) Performance contracting funding.--The Secretary 
                shall not make a loan under this section for a project 
                for which funding is available and is acceptable to the 
                requesting agency under title VIII of the National 
                Energy Conservation Policy Act (42 U.S.C. 8287 et 
                seq.).
                  (C) Purposes of loan.--
                          (i) In general.--A loan under this section 
                        may be made to pay the costs of--
                                  (I) an energy efficiency project 
                                identification and design of an energy 
                                efficiency project, and energy metering 
                                plans and equipment for purposes of new 
                                and existing building energy systems 
                                and verifications of energy savings of 
                                an energy savings performance contract; 
                                or
                                  (II) development and administration 
                                of an energy savings performance 
                                contract or utility energy service 
                                agreement.
                          (ii) Limitation.--An agency may use not more 
                        than 15 percent of the amount of a loan under 
                        clause (i)(I) to pay the costs of 
                        administration and proposal development 
                        (including data collection and energy surveys).
                  (D) Repayments.--
                          (i) In general.--An agency shall repay to the 
                        Bank the principal amount of the energy 
                        efficiency project loan plus interest at a rate 
                        determined by the President, in consultation 
                        with the Secretary and the Secretary of the 
                        Treasury. The repayment period shall be 10 
                        years in the case of water conservation and 
                        renewable energy projects.
                          (ii) Waiver.--The Secretary may waive the 
                        requirement of clause (i) if the Secretary 
                        determines that payment of interest by an 
                        agency is not required to sustain the needs of 
                        the Bank in making energy efficiency project 
                        loans.
                  (E) Agency energy budgets.--Until a loan is repaid, 
                an agency budget submitted to Congress for a fiscal 
                year shall not be reduced by the value of energy 
                savings accrued as a result of the energy conservation 
                measure implemented with funds from the Bank.
                  (F) Availability of funds.--An agency shall not 
                rescind or reprogram funds made available by this 
                section. Funds loaned to an agency shall be retained by 
                the agency until expended, without regard to fiscal 
                year limitation.
  (d) Selection Criteria.--
          (1) In general.--The Secretary shall establish criteria for 
        the selection of energy efficiency projects to be awarded loans 
        in accordance with paragraph (2).
          (2) Selection criteria.--The Secretary may make loans only 
        for energy efficiency projects that--
                  (A) are technically feasible;
                  (B) are determined to be cost-effective using life 
                cycle cost methods established by the Secretary by 
                regulation;
                  (C) include a measurement and management component 
                to--
                          (i) commission energy savings for new Federal 
                        facilities; and
                          (ii) monitor and improve energy efficiency 
                        management at existing Federal facilities;
                  (D) have a project payback period of 10 years or 
                less; and
                  (E) gives funding priority to projects with the 
                quickest payback and least total cost.
  (e) Reports and Audits.--
          (1) Reports to the secretary.--Not later than 1 year after 
        the installation of an energy efficiency project that has a 
        total cost of more than $1,000,000, and each year thereafter, 
        an agency shall submit to the Secretary a report that--
                  (A) states whether the project meets or fails to meet 
                the energy savings projections for the project; and
                  (B) for each project that fails to meet the energy 
                savings projections, states the reasons for the failure 
                and describes proposed remedies.
          (2) Audits.--The Secretary may audit any energy efficiency 
        project financed with funding from the Bank to assess the 
        project's performance.
          (3) Reports to congress.--At the end of each fiscal year, the 
        Secretary shall submit to the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report on the operations of 
        the Bank, including a statement of the total receipts into the 
        Bank, and the total expenditures from the Bank to each agency.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
2002 through 2008 to carry out this section.

SEC. 126. ADVANCED BUILDING EFFICIENCY TESTBED.

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

SEC. 127. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.

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

SEC. 128. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT PROGRAM.

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

SEC. 129. CAPITOL COMPLEX.

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

                       Subtitle C--State Programs

SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.

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

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

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

SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

  Section 422 of the Energy Conservation and Production Act (42 U.S.C. 
6872) is amended by striking ``for fiscal years 1999 through 2003 such 
sums as may be necessary'' and inserting ``$250,000,000 for fiscal year 
2002, $325,000,000 for fiscal year 2003, $400,000,000 for fiscal year 
2004, and $500,000,000 for fiscal year 2005''.

SEC. 134. LIHEAP.

  (a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is 
amended by striking the first sentence and inserting the following: 
``There are authorized to be appropriated to carry out the provisions 
of this title (other than section 2607A), $3,400,000,000 for each of 
fiscal years 2001 through 2005.''.
  (b) GAO Study.--The Comptroller General of the United States shall 
conduct a study to determine--
          (1) the extent to which Low-Income Home Energy Assistance 
        (LIHEAP) and other government energy subsidies paid to 
        consumers discourage energy conservation and energy efficiency 
        investments; and
          (2) the extent to which the goals of conservation and 
        assistance for low income households could be simultaneously 
        achieved through cash income supplements that do not 
        specifically target energy, thereby maintaining incentives for 
        wise use of expensive forms of energy, or through other means.

SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.

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

          Subtitle D--Energy Efficiency for Consumer Products

SEC. 141. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

  ``(a) In General.--There is established at the Department of Energy 
and the Environmental Protection Agency a program to identify and 
promote energy-efficient products and buildings in order to reduce 
energy consumption, improve energy security, and reduce pollution 
through labeling of products and buildings that meet the highest energy 
efficiency standards. Responsibilities under the program shall be 
divided between the Department of Energy and the Environmental 
Protection Agency consistent with the terms of agreements between the 
two agencies. The Administrator and the Secretary shall--
          ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
          ``(2) work to enhance public awareness of the Energy Star 
        label; and
          ``(3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is authorized to 
be appropriated for fiscal years 2002 through 2006 such sums as may be 
necessary, to remain available until expended.
  ``(b) Study of Certain Products and Buildings.--Within 180 days after 
the date of enactment of this section, the Secretary and the 
Administrator, consistent with the terms of agreements between the two 
agencies, shall determine whether the Energy Star label should be 
extended to additional products and buildings, including the following:
          ``(1) Air cleaners.
          ``(2) Ceiling fans.
          ``(3) Light commercial heating and cooling products.
          ``(4) Reach-in refrigerators and freezers.
          ``(5) Telephony.
          ``(6) Vending machines.
          ``(7) Residential water heaters.
          ``(8) Refrigerated beverage merchandisers.
          ``(9) Commercial ice makers.
          ``(10) School buildings.
          ``(11) Retail buildings.
          ``(12) Health care facilities.
          ``(13) Homes.
          ``(14) Hotels and other commercial lodging facilities.
          ``(15) Restaurants and other food service facilities.
          ``(16) Solar water heaters.
          ``(17) Building-integrated photovoltaic systems.
          ``(18) Reflective pigment coatings.
          ``(19) Windows.
          ``(20) Boilers.
          ``(21) Devices to extend the life of motor vehicle oil.
  ``(c) Cool Roofing.--In determining whether the Energy Star label 
should be extended to roofing products, the Secretary and the 
Administrator shall work with the roofing products industry to 
determine the appropriate solar reflective index of roofing 
products.''.
  (b) Table of Contents Amendment.--The table of contents of the Energy 
Policy and Conservation Act is amended by inserting after the item 
relating to section 324 the following new item:

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

SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.

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

SEC. 143. APPLIANCE STANDARDS.

  (a) Standards for Household Appliances in Standby Mode.--Section 325 
of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended 
by adding at the end the following:
  ``(u) Standby Mode Electric Energy Consumption by Household 
Appliances.--(1) In this subsection:
          ``(A) The term `household appliance' means any device that 
        uses household electric current and operates in a standby mode 
        except digital televisions, digital set top boxes, and digital 
        video recorders.
          ``(B) The term `standby mode' means a mode in which a 
        household appliance consumes the least amount of electric 
        energy that the household appliance is capable of consuming 
        without being completely switched off.
  ``(2)(A) Except as provided in subparagraph (B), a household 
appliance that is manufactured in, or imported for sale in, the United 
States on or after the date that is 2 years after the date of enactment 
of this subsection shall not consume in standby mode more than 1 watt.
  ``(B)(i) A household appliance model that, as of the date of 
enactment of this subsection, is recognized under the Energy Star 
program administered by the Administrator of the Environmental 
Protection Agency and the Secretary shall have until January 1, 2005, 
to meet the standard under subparagraph (A).
  ``(ii) In the case of analog televisions, the Secretary shall 
prescribe, on or after the date that is 2 years after the date of 
enactment of this subsection, in accordance with subsections (o) and 
(p) of section 325, an energy conservation standard that is 
technologically feasible and economically justified under section 
325(o)(2)(A) (in lieu of the 1 watt standard under subparagraph (A)).
  ``(3)(A) A manufacturer or importer of a household appliance may 
submit to the Secretary an application for an exemption of the 
household appliance from the standard under paragraph (2).
  ``(B) The Secretary shall grant an exemption for a household 
appliance for which an application is made under subparagraph (A) if 
the applicant provides evidence showing that, and the Secretary 
determines that--
          ``(i) it is not technically feasible to modify the household 
        appliance to enable the household appliance to meet the 
        standard;
          ``(ii) the standard is incompatible with an energy efficiency 
        standard applicable to the household appliance under another 
        subsection; or
          ``(iii) the cost of electricity that a typical consumer would 
        save in operating the household appliance meeting the standard 
        would not equal the increase in the price of the household 
        appliance that would be attributable to the modifications that 
        would be necessary to enable the household appliance to meet 
        the standard by the earlier of--
                  ``(I) the date that is 7 years after the date of 
                purchase of the household appliance; or
                  ``(II) the end of the useful life of the household 
                appliance.
  ``(C) If the Secretary determines that it is not technically feasible 
to modify a household appliance to meet the standard under paragraph 
(2), the Secretary shall establish a different standard for the 
household appliance in accordance with the criteria under subsection 
(l).
  ``(4)(A) Not later than 1 year after the date of enactment of this 
subsection, the Secretary shall establish a test procedure for 
determining the amount of consumption of power by a household appliance 
operating in standby mode.
  ``(B) In establishing the test procedure, the Secretary shall 
consider--
          ``(i) international test procedures under development;
          ``(ii) test procedures used in connection with the Energy 
        Star program; and
          ``(iii) test procedures used for measuring power consumption 
        in standby mode in other countries.
  ``(5) Further reduction of standby power consumption.--The Secretary 
shall provide technical assistance to manufacturers in achieving 
further reductions in standby mode electric energy consumption by 
household appliances.
  ``(v) Standby Mode Electric Energy Consumption by Digital 
Televisions, Digital Set Top Boxes, and Digital Video Recorders.--The 
Secretary shall initiate on January 1, 2007 a rulemaking to prescribe, 
in accordance with subsections (o) and (p), an energy conservation 
standard of standby mode electric energy consumption by digital 
television sets, digital set top boxes, and digital video recorders. 
The Secretary shall issue a final rule prescribing such standards not 
later than 18 months thereafter. In determining whether a standard 
under this section is technologically feasible and economically 
justified under section 325(o)(2)(A), the Secretary shall consider the 
potential effects on market penetration by digital products covered 
under this section, and shall consider any recommendations by the FCC 
regarding such effects.''.
  (2) Section 325(n)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6295(n)(1)) is amended by striking ``(11), and in paragraphs 
(13) and''.
  (b) Standards for Noncovered Products.--Section 325(m) of the Energy 
Policy and Conservation Act (42 U.S.C. 6295(m)) is amended as follows:
          (1) Inserting ``(1)'' before ``After''.
          (2) Inserting the following at the end:
  (2) ``Not later than one year after the date of enactment of the 
Energy Advancement and Conservation Act of 2001, the Secretary shall 
conduct a rulemaking to determine whether consumer products not 
classified as a covered product under section 322(a)(1) through (18) 
meet the criteria of section 322(b)(1). If the Secretary finds that a 
consumer product not classified as a covered product meets the criteria 
of section 322(b)(1), he shall prescribe, in accordance with 
subsections (o) and (p), an energy conservation standard for such 
consumer product, if such standard is reasonably probable to be 
technologically feasible and economically justified within the meaning 
of subsection (o)(2)(A).''.
  (c) Consumer Education on Energy Efficiency Benefits of Air 
Conditioning, Heating and Ventilation Maintenance.--Section 337 of the 
Energy Policy and Conservation Act (42 U.S.C. 6307) is amended by 
adding the following new subsection after subsection (b):
  ``(c) HVAC Maintenance.--For the purpose of ensuring that installed 
air conditioning and heating systems operate at their maximum rated 
efficiency levels, the Secretary shall, within 180 days of the date of 
enactment of this subsection, develop and implement a public education 
campaign to educate homeowners and small business owners concerning the 
energy savings resulting from regularly scheduled maintenance of air 
conditioning, heating, and ventilating systems. In developing and 
implementing this campaign, the Secretary shall consider support by the 
Department of public education programs sponsored by trade and 
professional or energy efficiency organizations. The public service 
information shall provide sufficient information to allow consumers to 
make informed choices from among professional, licensed (where State or 
local licensing is required) contractors. There are authorized to be 
appropriated to carry out this subsection $5,000,000 for fiscal years 
2002 and 2003 in addition to amounts otherwise appropriated in this 
part.''.
  (d) Efficiency Standards for Furnace Fans, Ceiling Fans, and Cold 
Drink Vending Machines..--
          (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291) is amended by adding the 
        following at the end thereof:
          ``(32) The term `residential furnace fan' means an electric 
        fan installed as part of a furnace for purposes of circulating 
        air through the system air filters, the heat exchangers or 
        heating elements of the furnace, and the duct work.
          ``(33) The terms `residential central air conditioner fan' 
        and `heat pump circulation fan' mean an electric fan installed 
        as part of a central air conditioner or heat pump for purposes 
        of circulating air through the system air filters, the heat 
        exchangers of the air conditioner or heat pump, and the duct 
        work.
          ``(34) The term `suspended ceiling fan' means a fan intended 
        to be mounted to a ceiling outlet box, ceiling building 
        structure, or to a vertical rod suspended from the ceiling, and 
        which as blades which rotate below the ceiling and consists of 
        an electric motor, fan blades (which rotate in a direction 
        parallel to the floor), an optional lighting kit, and one or 
        more electrical controls (integral or remote) governing fan 
        speed and lighting operation.
          ``(35) The term `refrigerated bottled or canned beverage 
        vending machine' means a machine that cools bottled or canned 
        beverages and dispenses them upon payment.''.
          (2) Testing requirements.--Section 323 of the Energy Policy 
        and Conservation Act (42 U.S.C. 6293) is amended by adding the 
        following at the end thereof:
  ``(f) Additional Consumer Products.--The Secretary shall within 18 
months after the date of enactment of this subsection prescribe testing 
requirements for residential furnace fans, residential central air 
conditioner fans, heat pump circulation fans, suspended ceiling fans, 
and refrigerated bottled or canned beverage vending machines. Such 
testing requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
residential furnace fans, residential central air conditioner fans, 
heat pump circulation fans, and suspended ceiling fans, such test 
procedures shall include efficiency at both maximum output and at an 
output no more than 50 percent of the maximum output.''.
          (3) Standards for additional consumer products.--Section 325 
        of the Energy Policy and Conservation Act (42 U.S.C. 6295) is 
        amended by adding the following at the end thereof:
  ``(w) Residential Furnace Fans, Central Air and Heat Pump Circulation 
Fans, Suspended Ceiling Fans, and Vending Machines.--(1) The Secretary 
shall, within 18 months after the date of enactment of this subsection, 
assess the current and projected future market for residential furnace 
fans, residential central air conditioner and heat pump circulation 
fans, suspended ceiling fans, and refrigerated bottled or canned 
beverage vending machines. This assessment shall include an examination 
of the types of products sold, the number of products in use, annual 
sales of these products, energy used by these products sold, the number 
of products in use, annual sales of these products, energy used by 
these products, estimates of the potential energy savings from specific 
technical improvements to these products, and an examination of the 
cost-effectiveness of these improvements. Prior to the end of this time 
period, the Secretary shall hold an initial scoping workshop to discuss 
and receive input to plans for developing minimum efficiency standards 
for these products.
  ``(2) The Secretary shall within 24 months after the date on which 
testing requirements are prescribed by the Secretary pursuant to 
section 323(f), prescribe, by rule, energy conservation standards for 
residential furnace fans, residential central air conditioner and heat 
pump circulation fans, suspended ceiling fans, and refrigerated bottled 
or canned beverage vending machines. In establishing these standards, 
the Secretary shall use the criteria and procedures contained in 
subsections (l) and (m). Any standard prescribed under this section 
shall apply to products manufactured 36 months after the date such rule 
is published.''.
          (4) Labeling.--Section 324(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6294(a)) is amended by adding the 
        following at the end thereof:
  ``(5) The Secretary shall within 6 months after the date on which 
energy conservation standards are prescribed by the Secretary for 
covered products referred to in section 325(w), prescribe, by rule, 
labeling requirements for such products. These requirements shall take 
effect on the same date as the standards prescribed pursuant to section 
325(w).''.
          (5) Covered products.--Section 322(a) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6292(a)) is amended by 
        redesignating paragraph (19) as paragraph (20) and by inserting 
        after paragraph (18) the following:
          ``(19) Beginning on the effective date for standards 
        established pursuant to subsection (v) of section 325, each 
        product referred to in such subsection (v).''.

                 Subtitle E--Energy Efficient Vehicles

SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.

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

SEC. 152. RAILROAD EFFICIENCY.

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

SEC. 153. BIODIESEL FUEL USE CREDITS.

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

SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.

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

                      Subtitle F--Other Provisions

SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING 
                    ENERGY TECHNOLOGY.

  (a) In General.--Each Federal agency shall carry out a review of its 
regulations and standards to determine those that act as a barrier to 
market entry for emerging energy-efficient technologies, including, but 
not limited to, fuel cells, combined heat and power, and distributed 
generation (including small-scale renewable energy).
  (b) Report to Congress.--No later than 18 months after the date of 
enactment of this section, each agency shall provide a report to 
Congress and the President detailing all regulatory barriers to 
emerging energy-efficient technologies, along with actions the agency 
intends to take, or has taken, to remove such barriers.
  (c) Periodic Review.--Each agency shall subsequently review its 
regulations and standards in the manner specified in this section no 
less frequently than every 5 years, and report their findings to 
Congress and the President. Such reviews shall include a detailed 
analysis of all agency actions taken to remove existing barriers to 
emerging energy technologies.

SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.

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

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

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

SEC. 164. GAS FLARE STUDY.

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

SEC. 165. TELECOMMUTING STUDY.

  (a) Study Required.--The Secretary, in consultation with Commission, 
and the NTIA, shall conduct a study of the energy conservation 
implications of the widespread adoption of telecommuting in the United 
States.
  (b) Required Subjects of Study.--The study required by subsection (a) 
shall analyze the following subjects in relation to the energy saving 
potential of telecommuting:
          (1) Reductions of energy use and energy costs in commuting 
        and regular office heating, cooling, and other operations.
          (2) Other energy reductions accomplished by telecommuting.
          (3) Existing regulatory barriers that hamper telecommuting, 
        including barriers to broadband telecommunications services 
        deployment.
          (4) Collateral benefits to the environment, family life, and 
        other values.
  (c) Report Required.--The Secretary shall submit to the President and 
the Congress a report on the study required by this section not later 
than 6 months after the date of enactment of this Act. Such report 
shall include a description of the results of the analysis of each of 
the subject described in subsection (b).
  (d) Definitions.--As used in this section:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
          (3) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration of the 
        Department of Commerce.
          (4) Telecommuting.--The term ``telecommuting'' means the 
        performance of work functions using communications 
        technologies, thereby eliminating or substantially reducing the 
        need to commute to and from traditional worksites.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

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

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

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

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

SEC. 203. DUAL FUELED AUTOMOBILES.

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

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

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

``Sec. 32917. Standards for executive agency automobiles

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

SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.

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

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

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

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

  ``(a) Purposes.--The purposes of this section are to complement and 
supplement the requirements of section 303 of this Act that Federal 
fleets, as that term is defined in section 303(b)(3), acquire in the 
aggregate a minimum percentage of alternative fuel vehicles, to 
encourage the manufacture and sale or lease of such vehicles 
nationwide, and to achieve, in the aggregate, a reduction in the amount 
of the petroleum-based fuels (other than the alternative fuels defined 
in this title) used by new light-duty motor vehicles acquired by the 
Federal Government in model years 2004 through 2010 and thereafter.
  ``(b) Implementation.--In furtherance of such purposes, such Federal 
fleets in the aggregate shall reduce the purchase of petroleum-based 
nonalternative fuels for such fleets beginning October 1, 2003, through 
September 30, 2009, from the amount purchased for such fleets over a 
comparable period since enactment of this Act, as determined by the 
Secretary, through the annual purchase, in accordance with section 304, 
and the use of alternative fuels for the light-duty motor vehicles of 
such Federal fleets, so as to achieve levels which reflect total 
reliance by such fleets on the consumptive use of alternative fuels 
consistent with the provisions of section 303(b) of this Act. The 
Secretary shall, within 120 days after the enactment of this section, 
promulgate, in consultation with the Administrator of the General 
Services Administration and the Director of the Office of Management 
and Budget and such other heads of entities referenced in section 303 
within the executive branch as such Director may designate, standards 
for the full and prompt implementation of this section by such 
entities. The Secretary shall monitor compliance with this section and 
such standards by all such fleets and shall report annually to the 
Congress, based on reports by the heads of such fleets, on the extent 
to which the requirements of this section and such standards are being 
achieved. The report shall include information on annual reductions 
achieved of petroleum-based fuels and the problems, if any, encountered 
in acquiring alternative fuels and in requiring their use.''.
          (2) By amending section 304(b) of such Act to read as 
        follows:
  ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary or, as appropriate, the head of each 
Federal fleet subject to the provisions of this section and section 313 
of this Act, such sums as may be necessary to achieve the purposes of 
section 313(a) and the provisions of this section. Such sums shall 
remain available until expended.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end of the items relating to title 
III the following:

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

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

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

                       TITLE III--NUCLEAR ENERGY

                     Subtitle A--General Provisions

SEC. 301. BUDGET STATUS OF NUCLEAR WASTE FUND.

  (a) In General.--Notwithstanding any other provision of law, the 
receipts and disbursements of the Nuclear Waste Fund established under 
section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) 
shall not be counted as new budget authority, outlays, receipts, or 
deficit or surplus for purposes of--
          (1) the budget of the United States Government as submitted 
        by the President;
          (2) the congressional budget; or
          (3) the Balanced Budget and Emergency Deficit Control Act of 
        1985.
  (b) Effect on Paygo Scorecard.--Upon the enactment of this Act, the 
Director of the Office of Management and Budget shall not make any 
estimates of changes in direct spending outlays and receipts under 
section 252(d) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 resulting from the enactment of subsection (a) of this section.

SEC. 302. LICENSE PERIOD.

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

SEC. 303. COST RECOVERY FROM GOVERNMENT AGENCIES.

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

SEC. 304. DEPLETED URANIUM HEXAFLUORIDE.

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

SEC. 305. NUCLEAR REGULATORY COMMISSION MEETINGS.

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

                Subtitle B--Domestic Uranium Fuel Cycle

SEC. 311. PORTSMOUTH COLD STANDBY.

  The Secretary of Energy (in this subtitle referred to as the 
``Secretary'') may use, without need for further appropriations, funds 
from the United States Enrichment Corporation Fund established under 
section 1308 of the Atomic Energy Act of 1954 (other than amounts 
reserved under Public Law 105-204) for the implementation of cold 
standby status at the Portsmouth Gaseous Diffusion Plant, consistent 
with the plan required under section 314(b), in the following amounts:
          (1) $36,000,000 for fiscal year 2002.
          (2) $43,000,000 for fiscal year 2003.
          (3) $43,000,000 for fiscal year 2004.
          (4) $47,000,000 for fiscal year 2005.

SEC. 312. PADUCAH FUNDING.

  The Secretary may use, without need for further appropriations, funds 
from the United States Enrichment Corporation Fund established under 
section 1308 of the Atomic Energy Act of 1954 (other than amounts 
reserved under Public Law 105-204) for the Paducah Gaseous Diffusion 
Plant for activities that do not duplicate the transfer and storage 
operations at the Portsmouth Gaseous Diffusion Plant, $169,000,000 for 
the period encompassing fiscal years 2002 through 2005.

SEC. 313. RESEARCH AND DEVELOPMENT.

  (a) Plan.--Not later than 5 months after the date of the enactment of 
this Act, the Secretary shall transmit to the Congress a detailed 
research and development plan with respect to advanced gas centrifuge 
technology for uranium enrichment.
  (b) Elements.--The plan required under subsection (a) shall--
          (1) identify the technical obstacles to the deployment of an 
        advanced gas centrifuge technology that will be cost 
        competitive with advanced gas centrifuge technologies deployed 
        in other nations, and propose a strategy to overcome those 
        obstacles;
          (2) include plans for the construction of a pilot facility at 
        a Department of Energy-owned Gaseous Diffusion Plant, and for 
        full-scale deployment of advanced gas centrifuge technology, as 
        necessary to move gas centrifuge technology for uranium 
        enrichment from the laboratory to the marketplace, taking into 
        consideration--
                  (A) confirmation of technical performance; and
                  (B) initiation of preliminary plant design and 
                engineering that validates economic projections and 
                considers cost effectiveness, accessibility to 
                infrastructure, turnover activities, schedule, 
                financing mechanisms, and risks of construction;
          (3) provide a process to validate and demonstrate commercial 
        feasibility, if the pilot facility described in paragraph (2) 
        is not constructed;
          (4) set forth a schedule to ensure full-scale deployment, and 
        a strategy to provide a reliable and economical domestic source 
        of uranium enrichment services until such full-scale deployment 
        is completed;
          (5) evaluate the relative merits of full-scale deployment 
        by--
                  (A) private sector companies;
                  (B) a government-owned corporation;
                  (C) a partnership between the private and public 
                sectors; and
                  (D) the Department of Energy,
        using facilities and property at the Portsmouth Gaseous 
        Diffusion Plant or the Paducah Gaseous Diffusion Plant; and
          (6) provide for a competitive process for deployment of the 
        full-scale technology, and assignment of rights to use 
        Department of Energy patents if the Department of Energy does 
        not deploy the technology.
  (c) Public Comment.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall make available a draft 
version of the plan for a public comment period of 30 days.
  (d) Implementation.--One month after the plan is transmitted to the 
Congress under subsection (a), the Secretary shall begin to implement 
the plan.
  (e) Funding.--
          (1) Authorization of appropriations.--For the purposes of 
        implementing the plan developed under this section, the 
        Secretary may use, without need for further appropriations, the 
        following amounts from the United States Enrichment Corporation 
        Fund established under section 1308 of the Atomic Energy Act of 
        1954 (other than amounts reserved under Public Law 105-204):
                  (A) $27,000,000 for fiscal year 2002.
                  (B) $40,000,000 for fiscal year 2003.
                  (C) $58,000,000 for fiscal year 2004.
                  (D) $67,000,000 for fiscal year 2005.
                  (E) $62,000,000 for fiscal year 2006.
          (2) Plan.--The Secretary may use, without need for further 
        appropriations, funds from the United States Enrichment 
        Corporation Fund established under section 1308 of the Atomic 
        Energy Act of 1954 (other than amounts reserved under Public 
        Law 105-204) to pay the costs of developing the plan under this 
        section.

SEC. 314. SHORT-TERM RELIABILITY OF DOMESTIC URANIUM ENRICHMENT 
                    CAPACITY.

  (a) Criteria.--Not later than 4 months after the date of the 
enactment of this Act, the Secretary shall prepare, and make available 
for a 30-day period of public comment, draft criteria for determining 
when the hot restart of facilities at the Portsmouth Gaseous Diffusion 
Plant may be necessary, if supplies of nuclear fuel are disrupted or 
anticipated to be disrupted, to mitigate the impacts on--
          (1) the supply of nuclear fuel to power plants in the United 
        States; and
          (2) uranium enrichment supply contracts with foreign 
        utilities for which the United States Government is liable for 
        performance in the event of nonperformance by the United States 
        Enrichment Corporation or its successors, or where the United 
        States has obligations under Federal law or treaty.
  (b) Plan.--Not later than 6 months after the date of the enactment of 
this Act, the Secretary shall prepare, and make available for a 30-day 
period of public comment, a plan for the hot restart of facilities at 
the Portsmouth Gaseous Diffusion Plant. Such plan shall--
          (1) incorporate the criteria developed under subsection (a);
          (2) provide for uranium enrichment capabilities of up to 
        3,000,000 separative work units per year;
          (3) ensure the capability of producing both higher assay (up 
        to 10 percent U 235) and lower assay (0.7 percent to 4.95 
        percent U 235) fuels;
          (4) include options for the use of the Department of Energy's 
        inventory of natural uranium;
          (5) provide for the retention of sufficient R-114 refrigerant 
        to operate the Portsmouth Gaseous Diffusion Plant for 15 years 
        or until there is equivalent replacement uranium enrichment 
        capacity deployed in the United States; and
          (6) include cost estimates for hot restart and annual 
        operating costs of the facility.
  (c) Transmittal to Congress.--Not later than 8 months after the date 
of the enactment of this Act, the Secretary shall transmit to the 
Congress the plan described in subsection (b), including the criteria 
developed under subsection (a).
  (d) Funding.--The Secretary may use, without need for further 
appropriations, funds from the United States Enrichment Corporation 
Fund established under section 1308 of the Atomic Energy Act of 1954 
(other than amounts reserved under Public Law 105-204) to pay the costs 
of developing the criteria and plan under this section.

SEC. 315. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
                    DEMONSTRATION PROJECTS FOR THE URANIUM MINING 
                    INDUSTRY.

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

SEC. 316. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION INDUSTRY.

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

SEC. 317. PROHIBITION OF COMMERCIAL SALES OF URANIUM BY THE UNITED 
                    STATES UNTIL 2009.

  Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is 
amended by adding at the end the following new subsection:
  ``(g) Prohibition on Sales.--Notwithstanding any other provision of 
law, the United States Government shall not sell or transfer any 
uranium (including natural uranium concentrates, natural uranium 
hexafluoride, enriched uranium, depleted uranium, or uranium in any 
other form) through March 23, 2009 (except sales or transfers for use 
by the Tennessee Valley Authority in relation to the Department of 
Energy's HEU or Tritium programs, or the Department or Energy research 
reactor sales program, or any depleted uranium hexaflouride to be 
transferred to a designated Department of Energy contractor in 
conjunction with the planned construction of the Depleted Uranium 
Hexaflouride conversion plants in Portsmouth, Ohio, and Paducah, 
Kentucky, or for emergency purposes in the event of a disruption in 
supply to end users in the United States). The aggregate of sales or 
transfers of uranium by the United States Government after March 23, 
2009, shall not exceed 3,000,000 pounds U3O8 per 
calendar year.''.

SEC. 318. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.

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

                     TITLE IV--HYDROELECTRIC ENERGY

SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.

  (a) Alternative Mandatory Conditions.--Section 4 of the Federal Power 
Act (16 U.S.C. 797) is amended by adding at the end the following:
  ``(h)(1) Whenever any person applies for a license for any project 
works within any reservation of the United States, and the Secretary of 
the department under whose supervision such reservation falls deems a 
condition to such license to be necessary under the first proviso of 
subsection (e), the license applicant or any other party to the 
licensing proceeding may propose an alternative condition.
  ``(2) Notwithstanding the first proviso of subsection (e), the 
Secretary of the department under whose supervision the reservation 
falls shall accept the proposed alternative condition referred to in 
paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the party 
proposing such alternative condition, that the alternative condition--
          ``(A) provides no less protection for the reservation than 
        provided by the condition deemed necessary by the Secretary; 
        and
          ``(B) will either--
                  ``(i) cost less to implement, or
                  ``(ii) result in improved operation of the project 
                works for electricity production
        as compared to the condition deemed necessary by the Secretary.
  ``(3) Within one year after the enactment of this subsection, each 
Secretary concerned shall, by rule, establish a process to 
expeditiously resolve conflicts arising under this subsection.''.
  (b) Alternative Fishways.--Section 18 of the Federal Power Act (16 
U.S.C. 811) is amended by--
          (1) inserting ``(a)'' before the first sentence; and
          (2) adding at the end the following:
  ``(b)(1) Whenever the Commission shall require a licensee to 
construct, maintain, or operate a fishway prescribed by the Secretary 
of the Interior or the Secretary of Commerce under this section, the 
licensee or any other party to the proceeding may propose an 
alternative to such prescription to construct, maintain, or operate a 
fishway.
  ``(2) Notwithstanding subsection (a), the Secretary of the Interior 
or the Secretary of Commerce, as appropriate, shall accept and 
prescribe, and the Commission shall require, the proposed alternative 
referred to in paragraph (1), if the Secretary of the appropriate 
department determines, based on substantial evidence provided by the 
party proposing such alternative, that the alternative--
          ``(A) will be no less effective than the fishway initially 
        prescribed by the Secretary, and
          ``(B) will either--
                  ``(i) cost less to implement, or
                  ``(ii) result in improved operation of the project 
                works for electricity production
        as compared to the fishway initially prescribed by the 
        Secretary.
  ``(3) Within one year after the enactment of this subsection, the 
Secretary of the Interior and the Secretary of Commerce shall each, by 
rule, establish a process to expeditiously resolve conflicts arising 
under this subsection.''

SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.

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

                          TITLE V--CLEAN COAL

SEC. 501. SHORT TITLE.

  This title may be cited as the ``National Electricity and 
Environmental Improvement Act''.

SEC. 502. FINDINGS.

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

      Subtitle A--Accelerated Clean Coal Power Production Program

SEC. 511. DEFINITIONS.

  In this subtitle:
          (1) Cost and performance goals.--The term ``cost and 
        performance goals'' means the cost and performance goals 
        established under section 512.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 512. COST AND PERFORMANCE GOALS.

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

SEC. 513. STUDY.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, and once every 2 years thereafter through 2016, the 
Secretary, in cooperation with the Secretary of the Interior and the 
Administrator of the Environmental Protection Agency, shall transmit to 
the Congress a report containing the results of a study to--
          (1) identify methods and equipment that, by themselves or in 
        combination with other efforts, may be capable of achieving the 
        cost and performance goals;
          (2) assess the costs that would be incurred by, and the 
        period of time that would be required for, the production of 
        power generation methods and equipment that, by themselves or 
        in combination with other methods and equipment, contribute to 
        the achievement of the cost and performance goals;
          (3) develop recommendations for the Department of Energy, in 
        cooperation with industry, to develop and implement methods and 
        equipment that, by themselves or in combination with other 
        efforts, achieve the production and generation of coal-based 
        power meeting the cost and performance goals; and
          (4) develop recommendations for additional authorities 
        required to achieve the cost and performance goals.
  (b) Expert Advice.--In carrying out this section, the Secretary shall 
give due weight to the expert advice of representatives of the entities 
described in section 512(b).

SEC. 514. PRODUCTION AND GENERATION OF COAL-BASED POWER.

  (a) In General.--The Secretary shall carry out a program to 
facilitate production and generation of coal-based power through 
methods and equipment under--
          (1) this subtitle;
          (2) the Federal Nonnuclear Energy Research and Development 
        Act of 1974 (42 U.S.C. 5901 et seq.);
          (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et 
        seq.); and
          (4) title XIII of the Energy Policy Act of 1992 (42 U.S.C. 
        13331 et seq.).
  (b) Conditions.--The program described in subsection (a) shall be 
designed to achieve the cost and performance goals.

SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out sections 512, 513, and 514, $100,000,000 for 
each of the fiscal years 2002 through 2012, to remain available until 
expended.
  (b) Conditions of Authorization.--The authorization of appropriations 
under subsection (a)--
          (1) shall be in addition to authorizations of appropriations 
        in effect on the date of enactment of this Act; and
          (2) shall not be a cap on Department of Energy fossil energy 
        research and development and clean coal technology 
        appropriations.

SEC. 516. CLEAN COAL POWER INITIATIVE.

  (a) In General.--The Secretary shall establish a clean coal power 
initiative to facilitate the production and generation of power from 
advanced coal-based methods and equipment applicable to new or existing 
power plants, including coproduction plants.
  (b) Requirements.--The methods and equipment to be addressed under 
the initiative--
          (1) shall be methods and equipment that, by themselves or in 
        combination with other methods and equipment, advance 
        efficiency and environmental performance, and increase the 
        supply of power and promote cost competitiveness, well beyond 
        that which is in operation or has been demonstrated as of the 
        date of enactment of this Act; and
          (2) may include methods and equipment that have not 
        previously been envisioned for the production and generation of 
        coal-based power.
  (c) Plan.--Not later than 120 days after the date of enactment of 
this Act, the Secretary shall transmit to Congress a plan to carry out 
subsection (a) that includes a description of--
          (1) the program elements and management structure to be used;
          (2) milestones to be achieved with respect to the production 
        and generation of coal-based power methods and equipment; and
          (3) the activities proposed to be conducted at facilities 
        that serve or are located at new or existing coal-based 
        electric generation units having at least 50 megawatts 
        nameplate rating, including improvements to allow the units to 
        achieve 1 or more of the following:
                  (A) An overall design efficiency improvement of not 
                less than 3 percent as compared with the efficiency of 
                the unit as operated as of the date of enactment of 
                this Act and before any retrofit, repowering, 
                replacement, or installation.
                  (B) A significant improvement in, or new alternative 
                method or equipment to enhance, the environmental 
                performance related to the control of sulfur dioxide, 
                nitrogen oxide, or mercury in a manner that is 
                different and well below the cost of activities at 
                facilities that are in operation or have been in 
                operation as of the date of enactment of this Act.
                  (C) A means of recycling or reusing a significant 
                portion of coal combustion or gasification wastes or 
                byproducts produced by coal-based generating units, 
                excluding practices that are generally available as of 
                the date of enactment of this Act.
                  (D) A means to capture, separate, and reuse or 
                dispose of carbon dioxide that is different and well 
                below the cost of methods and equipment that are in 
                operation or have been in operation as of the date of 
                enactment of this Act.

SEC. 517. FINANCIAL ASSISTANCE.

  (a) In General.--Not later than 180 days after the date on which the 
Secretary transmits to Congress the plan under section 516(c), the 
Secretary shall solicit proposals for projects that serve or are 
located at new or existing facilities designed to achieve 1 or more of 
the levels of performance set forth in section 516(c)(3).
  (b) Project Criteria.--A solicitation under subsection (a) may 
include solicitation of a proposal for a project to demonstrate--
          (1) an overall design efficiency improvement of not less 3 
        percentage points as compared with the efficiency of the unit 
        as operated as of the date of enactment of this Act and with no 
        increase in the potential to emit sulfur dioxide, nitrogen 
        oxide, particulate matter, mercury, or carbon monoxide;
          (2) a reduction of emissions to a level of not more than--
                  (A)(i) in the case of sulfur dioxide--
                          (I) in the case of coal with a potential 
                        combustion concentration sulfur emission of 1.2 
                        or more pounds per million British thermal 
                        units of heat input, 5 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions; or
                          (II) in the case of a coal with a potential 
                        combustion concentration of less than 1.2 
                        pounds of per million British thermal units of 
                        heat input, 15 percent of the potential 
                        combustion concentration of sulfur dioxide 
                        emissions;
                  (ii) in the case of nitrogen oxide--
                          (I) in the case of a boiler other than a 
                        cyclone-fired boiler, emissions of 0.1 pound 
                        per million British thermal units of heat; or
                          (II) in the case of a cyclone-fired boiler, 
                        15 percent of the uncontrolled nitrogen oxide 
                        emissions from the boiler; or
                  (iii) in the case of particulate matter, emissions of 
                0.02 pound per million British thermal units of heat 
                input; or
                  (B) the emission levels for the pollutants identified 
                in subparagraph (A) that are specified in the new 
                source performance standards of the Clean Air Act (42 
                U.S.C. 7411) in effect at the time of construction, 
                installation, or retrofitting of the advanced coal-
                based method or equipment for the category of source if 
                they are lower than the levels specified in 
                subparagraph (A); or
          (3) the production of coal combustion byproducts that are 
        capable of obtaining economic values significantly greater than 
        byproducts produced as of the date of enactment of this Act 
        with no increase in the potential to emit sulfur dioxide, 
        nitrogen oxide, particulate matter, mercury, or carbon 
        monoxide.
  (c) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that are likely to--
          (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
          (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements;
          (3) achieve, in a cost-effective manner, 1 or more of the 
        criteria described in the solicitation; and
          (4) demonstrate methods and equipment that are applicable to 
        25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of enactment of 
        this Act.
  (d) Federal Share.--The Federal share of the cost of a project funded 
under this section shall not exceed 50 percent.
  (e) Funding.--To carry out this section, the Secretary may use any 
unobligated funds available to the Secretary and any funds obligated to 
any project selected under the clean coal technology program that 
become unobligated.

Subtitle B--Credit for Emission Reductions and Efficiency Improvements 
        in Existing Coal-Based Electricity Generation Facilities

SEC. 521. CREDIT FOR INVESTMENT IN QUALIFYING CLEAN COAL TECHNOLOGY.

  (a) Allowance of Qualifying Clean Coal Technology Unit Credit.--
Section 46 of the Internal Revenue Code of 1986 (relating to amount of 
credit) is amended by striking ``and'' at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and inserting ``, 
and'', and by adding at the end the following:
          ``(4) the qualifying clean coal technology unit credit.''.
  (b) Amount of Qualifying Clean Coal Technology Unit Credit.--Subpart 
E of part IV of subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to rules for computing investment credit) is amended 
by inserting after section 48 the following:

``SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT.

  ``(a) In General.--For purposes of section 46, the qualifying clean 
coal technology unit credit for any taxable year is an amount equal to 
10 percent of the qualified investment in a qualifying system of 
continuous emission control for such taxable year.
  ``(b) Qualifying System of Continuous Emission Control.--
          ``(1) In general.--For purposes of subsection (a), the term 
        `qualifying system of continuous emission control' means a 
        system of the taxpayer which--
                  ``(A) serves, is added to, or retrofits an existing 
                coal-based electricity generation unit, the 
                construction, installation, or retrofitting of which is 
                completed by the taxpayer (but only with respect to 
                that portion of the basis which is properly 
                attributable to such construction, installation, or 
                retrofitting),
                  ``(B) reduces the discharge into the atmosphere of 1 
                or more of the following pollutants to not more than--
                          ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million btu of heat 
                        input or greater,
                          ``(ii) 15 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of less than 1.2 lb/million Btu 
                        of heat input,
                          ``(iii) nitrogen oxide emissions of 0.l lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                          ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                          ``(v) particulate emission of 0.02 lb per 
                        million Btu of heat input, and
                          ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in force at the time 
                        of construction, installation or retrofitting 
                        of the qualifying system of continuous emission 
                        control for the category of source if such 
                        level is lower than the levels specified in 
                        clause (i), (ii), (iii), (iv), or (v),
                  ``(C) is depreciable under section 167,
                  ``(D) has a useful life of not less than 4 years, and
                  ``(E) is located in the United States.
          ``(2) Special rule for sale-leasebacks.--For purposes of 
        subparagraph (A) of paragraph (1), in the case of a unit 
        which--
                  ``(A) is originally placed in service by a person, 
                and
                  ``(B) is sold and leased back by such person, or is 
                leased to such person, within 3 months after the date 
                such unit was originally placed in service, for a 
                period of not less than 12 years,
        such unit shall be treated as originally placed in service not 
        earlier than the date on which such property is used under the 
        leaseback (or lease) referred to in subparagraph (B). The 
        preceding sentence shall not apply to any property if the 
        lessee and lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked only with 
        the consent of the Secretary.
  ``(c) Existing Coal-Based Electricity Generation Unit.--For purposes 
of subsection (a), the term `existing coal-based electricity generating 
unit' means, with respect to any taxable year, a steam generator-
turbine unit which uses coal to produce 75 percent or more of its 
output as electricity and was operated commercially before the 
effective date of this section.
  ``(d) Limit on Qualifying Clean Coal Technology Unit Credit.--For 
purposes of subsection (a), the credit shall be applicable to not more 
than the first $100,000,000 of qualifying investment in a qualifying 
system of continuous emission control at any 1 existing coal-based 
electricity generating unit.
  ``(e) Qualified Investment.--For purposes of subsection (a), the term 
`qualified investment' means, with respect to any taxable year, the 
basis of a qualifying system of continuous emission control placed in 
service by the taxpayer during such taxable year.
  ``(f) Qualified Progress Expenditures.--
          ``(1) Increase in qualified investment.--In the case of a 
        taxpayer who has made an election under paragraph (5), the 
        amount of the qualified investment of such taxpayer for the 
        taxable year (determined under subsection (e) without regard to 
        this subsection) shall be increased by an amount equal to the 
        aggregate of each qualified progress expenditure for the 
        taxable year with respect to progress expenditure property.
          ``(2) Progress expenditure property defined.--For purposes of 
        this subsection, the term `progress expenditure property' means 
        any property being constructed by or for the taxpayer and which 
        it is reasonable to believe will qualify as a qualifying system 
        of continuous emission control which is being constructed by or 
        for the taxpayer when it is placed in service.
          ``(3) Qualified progress expenditures defined.--For purposes 
        of this subsection--
                  ``(A) Self-constructed property.--In the case of any 
                self-constructed property, the term `qualified progress 
                expenditures' means the amount which, for purposes of 
                this subpart, is properly chargeable (during such 
                taxable year) to capital account with respect to such 
                property.
                  ``(B) Nonself-constructed property.--In the case of 
                nonself-constructed property, the term `qualified 
                progress expenditures' means the amount paid during the 
                taxable year to another person for the construction of 
                such property.
          ``(4) Other definitions.--For purposes of this subsection--
                  ``(A) Self-constructed property.--The term `self-
                constructed property' means property for which it is 
                reasonable to believe that more than half of the 
                construction expenditures will be made directly by the 
                taxpayer.
                  ``(B) Nonself-constructed property.--The term 
                `nonself-constructed property' means property which is 
                not self-constructed property.
                  ``(C) Construction, etc.--The term `construction' 
                includes reconstruction and erection, and the term 
                `constructed' includes reconstructed and erected.
                  ``(D) Only construction of qualifying system of 
                continuous emission control to be taken into account.--
                Construction shall be taken into account only if, for 
                purposes of this subpart, expenditures therefor are 
                properly chargeable to capital account with respect to 
                the property.
          ``(5) Election.--An election under this subsection may be 
        made at such time and in such manner as the Secretary may by 
        regulations prescribe. Such an election shall apply to the 
        taxable year for which made and to all subsequent taxable 
        years. Such an election, once made, may not be revoked except 
        with the consent of the Secretary.
  ``(g) Coordination With Other Credits.--This section shall not apply 
to any property with respect to which the rehabilitation credit under 
section 47 or the energy credit under section 48 is allowed unless the 
taxpayer elects to waive the application of such credit to such 
property.
  ``(h) Termination.--This section shall not apply with respect to any 
qualified investment made more than 10 years after the effective date 
of this section.''.
  (c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986 
(relating to other special rules) is amended by adding at the end the 
following:
          ``(6) Special rules relating to qualifying system of 
        continuous emission control.--For purposes of applying this 
        subsection in the case of any credit allowable by reason of 
        section 48A, the following shall apply:
                  ``(A) General rule.--In lieu of the amount of the 
                increase in tax under paragraph (1), the increase in 
                tax shall be an amount equal to the investment tax 
                credit allowed under section 38 for all prior taxable 
                years with respect to a qualifying system of continuous 
                emission control (as defined by section 48A(b)(1)) 
                multiplied by a fraction whose numerator is the number 
                of years remaining to fully depreciate under this title 
                the qualifying system of continuous emission control 
                disposed of, and whose denominator is the total number 
                of years over which such unit would otherwise have been 
                subject to depreciation. For purposes of the preceding 
                sentence, the year of disposition of the qualifying 
                system of continuous emission control property shall be 
                treated as a year of remaining depreciation.
                  ``(B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of paragraph 
                (2) shall apply in the case of qualified progress 
                expenditures for a qualifying system of continuous 
                emission control under section 48A, except that the 
                amount of the increase in tax under subparagraph (A) of 
                this paragraph shall be substituted in lieu of the 
                amount described in such paragraph (2).
                  ``(C) Application of paragraph.--This paragraph shall 
                be applied separately with respect to the credit 
                allowed under section 38 regarding a qualifying system 
                of continuous emission control.''.
  (d) Transitional Rule.--Section 39(d) of the Internal Revenue Code of 
1986 (relating to transitional rules) is amended by adding at the end 
the following:
          ``(11) No carryback of section 48a credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying clean coal 
        technology unit credit determined under section 48A may be 
        carried back to a taxable year ending before the date of 
        enactment of section 48A.''.
  (e) Technical Amendments.--
          (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 
        is amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following:
                          ``(iv) the portion of the basis of any 
                        qualifying system of continuous emission 
                        control attributable to any qualified 
                        investment (as defined by section 48A(e)).''.
          (2) Section 50(a)(4) of such Code is amended by striking 
        ``and (2)'' and inserting ``, (2), and (6)''.
          (3) Section 50(c) of such Code is amended by adding at the 
        end the following:
          ``(6) Nonapplication.--Paragraphs (1) and (2) shall not apply 
        to any qualifying clean coal technology unit credit under 
        section 48A.''.
          (4) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following:

                              ``Sec. 48A. Qualifying clean coal 
                                        technology unit credit.''.
  (f) Effective Date.--The amendments made by this section shall apply 
to periods after December 31, 2001, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as in effect on the 
day before the date of enactment of the Revenue Reconciliation Act of 
1990).

SEC. 522. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY 
                    UNIT.

  (a) Credit for Production From a Qualifying Clean Coal Technology 
Unit.--Subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to business related credits) is 
amended by adding at the end the following:

``SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL 
                    TECHNOLOGY UNIT.

  ``(a) General Rule.--For purposes of section 38, the qualifying clean 
coal technology production credit of any taxpayer for any taxable year 
is equal to the product of--
          ``(1) the applicable amount of clean coal technology 
        production credit, multiplied by
          ``(2) the kilowatt hours of electricity produced by the 
        taxpayer during such taxable year at a qualifying clean coal 
        technology unit during the 10-year period beginning on the date 
        the unit was returned to service after retrofit, repowering, or 
        replacement.
  ``(b) Applicable Amount.--
          ``(1) In general.--For purposes of this section, the 
        applicable amount of clean coal technology production credit is 
        equal to $0.0034.
          ``(2) Inflation adjustment factor.--For calendar years after 
        2001, the applicable amount of clean coal technology production 
        credit shall be adjusted by multiplying such amount by the 
        inflation adjustment factor for the calendar year in which the 
        amount is applied. If any amount as increased under the 
        preceding sentence is not a multiple of 0.01 cent, such amount 
        shall be rounded to the nearest multiple of 0.01 cent.
  ``(c) Definitions and Special Rules.--For purposes of this section--
          ``(1) Qualifying clean coal technology unit.--The term 
        `qualifying clean coal technology unit' means a unit of the 
        taxpayer which--
                  ``(A) is an existing coal-based electricity 
                generating steam generator-turbine unit,
                  ``(B) has a nameplate capacity rating of not more 
                than 300,000 kilowatts, and
                  ``(C) has been retrofitted, repowered, or replaced 
                with a clean coal technology within 10 years after the 
                effective date of this section.
          ``(2) Clean coal technology.--The term `clean coal 
        technology' means technology which--
                  ``(A) uses coal to produce 50 percent or more of its 
                thermal output as electricity, including advanced 
                pulverized coal or atmospheric fluidized bed 
                combustion, pressurized fluidized bed combustion, 
                integrated gasification combined cycle, or any other 
                technology for the production of electricity,
                  ``(B) has a design heat rate not less than 500 Btu/
                kWh below that of the existing unit before it is 
                retrofit, repowered, or replaced with the qualifying 
                clean coal technology,
                  ``(C) has a maximum design heat rate of not more than 
                9,500 Btu/kWh when the design coal has a heat content 
                of more than 9,000 Btu per pound,
                  ``(D) has a maximum design heat rate of not more than 
                10,500 Btu/kWh when the design coal has a heat content 
                of 9,000 Btu per pound or less, and
                  ``(E) reduces the discharge into the atmosphere of 1 
                or more of the following pollutants to not more than--
                          ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million btu of heat 
                        input or greater,
                          ``(ii) 15 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of less than 1.2 lb/million Btu 
                        of heat input,
                          ``(iii) nitrogen oxide emissions of 0.1 lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                          ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                          ``(v) particulate emissions of 0.02 lb per 
                        million Btu of heat input, and
                          ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in effect at the time 
                        of construction, installation or retrofitting 
                        of the qualifying clean coal technology unit 
                        for the category of source if such level is 
                        lower than the levels specified in clause (i), 
                        (ii), (iii), (iv), or (v).
          ``(3) Application of certain rules.--The rules of paragraphs 
        (3), (4), and (5) of section 45 shall apply.
          ``(4) Inflation adjustment factor.--The term `inflation 
        adjustment factor' means, with respect to a calendar year, a 
        fraction the numerator of which is the GDP implicit price 
        deflator for the preceding calendar year and the denominator of 
        which is the GDP implicit price deflator for the calendar year 
        2001.
          ``(5) GDP implicit price deflator.--The term `GDP implicit 
        price deflator' means the most recent revision of the implicit 
        price deflator for the gross domestic product as computed by 
        the Department of Commerce before March 15 of the calendar 
        year.
  ``(d) Coordination With Other Credits.--This section shall not apply 
to any property with respect to which the qualifying clean coal 
technology unit credit under section 48A is allowed unless the taxpayer 
elects to waive the application of such credit to such property.''.
  (b) Credit Treated as Business Credit.--Section 38(b) of the Internal 
Revenue Code of 1986 is amended by striking ``plus'' at the end of 
paragraph (14), by striking the period at the end of paragraph (15) and 
inserting ``, plus'', and by adding at the end the following:
          ``(16) the qualifying clean coal technology production credit 
        determined under section 45G(a).''.
  (c) Transitional Rule.--Section 39(d) of the Internal Revenue Code of 
1986 (relating to transitional rules), as amended by section 201(d), is 
amended by adding at the end the following:
          ``(12) No carryback of section 45g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying clean coal 
        technology production credit determined under section 45G may 
        be carried back to a taxable year ending before the date of 
        enactment of section 45G.''.
  (d) Clerical Amendment.--The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following:

                              ``Sec. 45G. Credit for production from a 
                                        qualifying clean coal 
                                        technology unit.''.
  (e) Effective Date.--The amendments made by this section shall apply 
to production after the date of enactment of this Act.

 Subtitle C--Incentives for Early Commercial Applications of Advanced 
                        Clean Coal Technologies

SEC. 531. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL 
                    TECHNOLOGY.

  (a) Allowance of Qualifying Advanced Clean Coal Technology Facility 
Credit.--Section 46 of the Internal Revenue Code of 1986 (relating to 
amount of credit), as amended by section 201(a), is amended by striking 
``and'' at the end of paragraph (3), by striking the period at the end 
of paragraph (4) and inserting ``, and'', and by adding at the end the 
following:
          ``(5) the qualifying advanced clean coal technology facility 
        credit.''.
  (b) Amount of Qualifying Advanced Clean Coal Technology Facility 
Credit.--Subpart E of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to rules for computing 
investment credit), as amended by section 521(b), is amended by 
inserting after section 48A the following:

``SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.

  ``(a) In General.--For purposes of section 46, the qualifying 
advanced clean coal technology facility credit for any taxable year is 
an amount equal to 10 percent of the qualified investment in a 
qualifying advanced clean coal technology facility for such taxable 
year.
  ``(b) Qualifying Advanced Clean Coal Technology Facility.--
          ``(1) In general.--For purposes of subsection (a), the term 
        `qualifying advanced clean coal technology facility' means a 
        facility of the taxpayer which--
                  ``(A)(i)(I) original use of which commences with the 
                taxpayer, or
                  ``(II) is a retrofitted or repowered conventional 
                technology facility, the retrofitting or repowering of 
                which is completed by the taxpayer (but only with 
                respect to that portion of the basis which is properly 
                attributable to such retrofitting or repowering), or
                  ``(ii) is acquired through purchase (as defined by 
                section 179(d)(2)),
                  ``(B) is depreciable under section 167,
                  ``(C) has a useful life of not less than 4 years,
                  ``(D) is located in the United States, and
                  ``(E) uses qualifying advanced clean coal technology.
          ``(2) Special rule for sale-leasebacks.--For purposes of 
        subparagraph (A) of paragraph (1), in the case of a facility 
        which--
                  ``(A) is originally placed in service by a person, 
                and
                  ``(B) is sold and leased back by such person, or is 
                leased to such person, within 3 months after the date 
                such facility was originally placed in service, for a 
                period of not less than 12 years,
        such facility shall be treated as originally placed in service 
        not earlier than the date on which such property is used under 
        the leaseback (or lease) referred to in subparagraph (B). The 
        preceding sentence shall not apply to any property if the 
        lessee and lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked only with 
        the consent of the Secretary.
  ``(c) Qualifying Advanced Clean Coal Technology.--For purposes of 
paragraph (1)--
          ``(1) In general.--The term `qualifying advanced clean coal 
        technology' means, with respect to clean coal technology--
                  ``(A) which has--
                          ``(i) multiple applications, with a combined 
                        capacity of not more than 5,000 megawatts 
                        (4,000 megawatts before 2009), of advanced 
                        pulverized coal or atmospheric fluidized bed 
                        combustion technology--
                                  ``(I) installed as a new, retrofit, 
                                or repowering application,
                                  ``(II) operated between 2000 and 
                                2012, and
                                  ``(III) having a design net heat rate 
                                of not more than 9,500 Btu per kilowatt 
                                hour when the design coal has a heat 
                                content of more than 9,000 Btu per 
                                pound, or a design net heat rate of not 
                                more than 9,900 Btu per kilowatt hour 
                                when the design coal has a heat content 
                                of 9,000 Btu per pound or less,
                          ``(ii) multiple applications, with a combined 
                        capacity of not more than 1,000 megawatts (500 
                        megawatts before 2009 and 750 megawatts before 
                        2013), of pressurized fluidized bed combustion 
                        technology--
                                  ``(I) installed as a new, retrofit, 
                                or repowering application,
                                  ``(II) operated between 2000 and 
                                2016, and
                                  ``(III) having a design net heat rate 
                                of not more than 8,400 Btu per kilowatt 
                                hour when the design coal has a heat 
                                content of more than 9,000 Btu per 
                                pound, or a design net heat rate of not 
                                more than 9,900 Btu's per kilowatt hour 
                                when the design coal has a heat content 
                                of 9,000 Btu per pound or less, and
                          ``(iii) multiple applications, with a 
                        combined capacity of not more than 2,000 
                        megawatts (1,000 megawatts before 2009 and 
                        1,500 megawatts before 2013), of integrated 
                        gasification combined cycle technology, with or 
                        without fuel or chemical co-production--
                                  ``(I) installed as a new, retrofit, 
                                or repowering application,
                                  ``(II) operated between 2000 and 
                                2016,
                                  ``(III) having a design net heat rate 
                                of not more than 8,550 Btu per kilowatt 
                                hour when the design coal has a heat 
                                content of more than 9,000 Btu per 
                                pound, or a design net heat rate of not 
                                more than 9,900 Btu per kilowatt hour 
                                when the design coal has a heat content 
                                of 9,000 Btu per pound or less, and
                                  ``(IV) having a net thermal 
                                efficiency on any fuel or chemical co-
                                production of not less than 39 percent 
                                (higher heating value), or
                          ``(iv) multiple applications, with a combined 
                        capacity of not more than 2,000 megawatts 
                        (1,000 megawatts before 2009 and 1,500 
                        megawatts before 2013) of technology for the 
                        production of electricity--
                                  ``(I) installed as a new, retrofit, 
                                or repowering application,
                                  ``(II) operated between 2000 and 
                                2016, and
                                  ``(III) having a carbon emission rate 
                                which is not more than 85 percent of 
                                conventional technology, and
                  ``(B) which reduces the discharge into the atmosphere 
                of 1 or more of the following pollutants to not more 
                than--
                          ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million btu of heat 
                        input or greater,
                          ``(ii) 15 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of less than 1.2 lb/million Btu 
                        of heat input,
                          ``(iii) nitrogen oxide emissions of 0.1 lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                          ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                          ``(v) particulate emissions of 0.02 lb per 
                        million Btu of heat input, and
                          ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in effect at the time 
                        of retrofitting, repowering, or replacement of 
                        the qualifying clean coal technology unit for 
                        the category of source if such level is lower 
                        than the levels specified in clause (i), (ii), 
                        (iii), (iv), or (v).
          ``(2) Exceptions.--Such term shall not include any projects 
        receiving or scheduled to receive funding under the Clean Coal 
        Technology Program, or the Power Plant Improvement administered 
        by the Secretary of the Department of Energy or a Qualifying 
        Clean Coal Technology Unit as defined in section 45G(c)(1).
  ``(d) Clean Coal Technology.--The term `clean coal technology' means 
advanced technology which uses coal to produce 75 percent or more of 
its thermal output as electricity including advanced pulverized coal or 
atmospheric fluidized bed combustion, pressurized fluidized bed 
combustion, integrated gasification combined cycle with or without fuel 
or chemical co-production, and any other technology for the production 
of electricity which exceeds the performance of conventional 
technology.
  ``(e) Conventional Technology.--The term `conventional technology' 
means--
          ``(1) coal-fired combustion technology with a design net heat 
        rate of not less than 9,500 Btu per kilowatt hour (HHV) and a 
        carbon equivalents emission rate of not more than 0.54 pounds 
        of carbon per kilowatt hour when the design coal has a heat 
        content of more than 9,000 Btu per pound,
          ``(2) coal-fired combustion technology with a design net heat 
        rate of not less than 10,500 Btu per kilowatt hour (HHV) and a 
        carbon equivalents emission rate of not more than 0.60 pounds 
        of carbon per kilowatt hour when the design coal has a heat 
        content of 9,000 Btu per pound or less, or
          ``(3) natural gas-fired combustion technology with a design 
        net heat rate of not less than 7,500 Btu per kilowatt hour 
        (HHV) and a carbon equivalents emission rate of not more than 
        0.24 pounds of carbon per kilowatt hour.
  ``(f) Design Net Heat Rate.--The design net heat rate shall be based 
on the design annual heat input to and the design annual net electrical 
output from the qualifying advanced clean coal technology (determined 
without regard to such technology's co-generation of steam).
  ``(g) Selection Criteria.--Selection criteria for qualifying advanced 
clean coal technology facilities--
          ``(1) shall be established by the Secretary of Energy as part 
        of a competitive solicitation,
          ``(2) shall include primary criteria of minimum design net 
        heat rate, maximum design thermal efficiency, environmental 
        performance, and lowest cost to the government, and
          ``(3) shall include supplemental criteria as determined 
        appropriate by the Secretary of Energy.
  ``(h) Qualified Investment.--For purposes of subsection (a), the term 
`qualified investment' means, with respect to any taxable year, the 
basis of a qualifying advanced clean coal technology facility placed in 
service by the taxpayer during such taxable year.
  ``(i) Qualified Progress Expenditures.--
          ``(1) Increase in qualified investment.--In the case of a 
        taxpayer who has made an election under paragraph (5), the 
        amount of the qualified investment of such taxpayer for the 
        taxable year (determined under subsection (c) without regard to 
        this section) shall be increased by an amount equal to the 
        aggregate of each qualified progress expenditure for the 
        taxable year with respect to progress expenditure property.
          ``(2) Progress expenditure property defined.--For purposes of 
        this subsection, the term `progress expenditure property' means 
        any property being constructed by or for the taxpayer and which 
        it is reasonable to believe will qualify as a qualifying 
        advanced clean coal technology facility which is being 
        constructed by or for the taxpayer when it is placed in 
        service.
          ``(3) Qualified progress expenditures defined.--For purposes 
        of this subsection--
                  ``(A) Self-constructed property.--In the case of any 
                self-constructed property, the term `qualified progress 
                expenditures' means the amount which, for purposes of 
                this subpart, is properly chargeable (during such 
                taxable year) to capital account with respect to such 
                property.
                  ``(B) Nonself-constructed property.--In the case of 
                nonself-constructed property, the term `qualified 
                progress expenditures' means the amount paid during the 
                taxable year to another person for the construction of 
                such property.
          ``(4) Other definitions.--For purposes of this subsection--
                  ``(A) Self-constructed property.--The term `self-
                constructed property' means property for which it is 
                reasonable to believe that more than half of the 
                construction expenditures will be made directly by the 
                taxpayer.
                  ``(B) Nonself-constructed property.--The term 
                `nonself-constructed property' means property which is 
                not self-constructed property.
                  ``(C) Construction, etc.--The term `construction' 
                includes reconstruction and erection, and the term 
                `constructed' includes reconstructed and erected.
                  ``(D) Only construction of qualifying advanced clean 
                coal technology facility to be taken into account.--
                Construction shall be taken into account only if, for 
                purposes of this subpart, expenditures therefor are 
                properly chargeable to capital account with respect to 
                the property.
          ``(5) Election.--An election under this subsection may be 
        made at such time and in such manner as the Secretary may by 
        regulations prescribe. Such an election shall apply to the 
        taxable year for which made and to all subsequent taxable 
        years. Such an election, once made, may not be revoked except 
        with the consent of the Secretary.
  ``(j) Coordination With Other Credits.--This section shall not apply 
to any property with respect to which the rehabilitation credit under 
section 47 or the energy credit under section 48 is allowed unless the 
taxpayer elects to waive the application of such credit to such 
property.
  ``(k) Termination.--This section shall not apply with respect to any 
qualified investment made more than 10 years after the effective date 
of this section.''.
  (c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986 
(relating to other special rules), as amended by section 201(c), is 
amended by adding at the end the following:
          ``(7) Special rules relating to qualifying advanced clean 
        coal technology facility.--For purposes of applying this 
        subsection in the case of any credit allowable by reason of 
        section 48B, the following shall apply:
                  ``(A) General rule.--In lieu of the amount of the 
                increase in tax under paragraph (1), the increase in 
                tax shall be an amount equal to the investment tax 
                credit allowed under section 38 for all prior taxable 
                years with respect to a qualifying advanced clean coal 
                technology facility (as defined by section 48B(b)(1)) 
                multiplied by a fraction whose numerator is the number 
                of years remaining to fully depreciate under this title 
                the qualifying advanced clean coal technology facility 
                disposed of, and whose denominator is the total number 
                of years over which such facility would otherwise have 
                been subject to depreciation. For purposes of the 
                preceding sentence, the year of disposition of the 
                qualifying advanced clean coal technology facility 
                property shall be treated as a year of remaining 
                depreciation.
                  ``(B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of paragraph 
                (2) shall apply in the case of qualified progress 
                expenditures for a qualifying advanced clean coal 
                technology facility under section 48B, except that the 
                amount of the increase in tax under subparagraph (A) of 
                this paragraph shall be substituted in lieu of the 
                amount described in such paragraph (2).
                  ``(C) Application of paragraph.--This paragraph shall 
                be applied separately with respect to the credit 
                allowed under section 38 regarding a qualifying 
                advanced clean coal technology facility.''.
  (d) Transitional Rule.--Section 39(d) of the Internal Revenue Code of 
1986 (relating to transitional rules), as amended by section 202(c), is 
amended by adding at the end the following:
          ``(13) No carryback of section 48b credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying advanced clean 
        coal technology facility credit determined under section 48B 
        may be carried back to a taxable year ending before the date of 
        enactment of section 48B.''.
  (e) Technical Amendments.--
          (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986, 
        as amended by section 521(e)(1), is amended by striking ``and'' 
        at the end of clause (iii), by striking the period at the end 
        of clause (iv) and inserting ``, and'', and by adding at the 
        end the following:
                          ``(v) the portion of the basis of any 
                        qualifying advanced clean coal technology 
                        facility attributable to any qualified 
                        investment (as defined by section 48B(c)).''.
          (2) Section 50(a)(4) of such Code, is amended by striking 
        ``and (6)'' and inserting ``(6), and (7)''.
          (3) Section 50(c)(6) of such Code, is amended by inserting 
        ``or any advanced clean coal technology facility credit under 
        section 48B'' after ``section 48A''.
          (4) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code, is amended by inserting 
        after the item relating to section 48A the following:

                              ``Sec. 48B. Qualifying advanced clean 
                                        coal technology facility 
                                        credit.''.
  (f) Effective Date.--The amendments made by this section shall apply 
to periods after December 31, 2001, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as in effect on the 
day before the date of enactment of the Revenue Reconciliation Act of 
1990).

SEC. 532. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL 
                    TECHNOLOGY.

  (a) Credit for Production From Qualifying Advanced Clean Coal 
Technology.--Subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to business related credits), 
as amended by section 522(a), is amended by adding at the end the 
following:

``SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL 
                    TECHNOLOGY.

  ``(a) General Rule.--For purposes of section 38, the qualifying 
advanced clean coal technology production credit of any taxpayer for 
any taxable year is equal to--
          ``(1) the applicable amount of advanced clean coal technology 
        production credit, multiplied by
          ``(2) the sum of--
                  ``(A) the kilowatt hours of electricity, plus
                  ``(B) each 3,413 Btu of fuels or chemicals,
        produced by the taxpayer during such taxable year at a 
        qualifying advanced clean coal technology facility during the 
        10-year period beginning on the date the facility was 
        originally placed in service.
  ``(b) Applicable Amount.--For purposes of this section, the 
applicable amount of advanced clean coal technology production credit 
with respect to production from a qualifying advanced clean coal 
technology facility shall be determined as follows:
          ``(1) Where the design coal has a heat content of more than 
        9,000 Btu per pound:
                  ``(A) In the case of a facility originally placed in 
                service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,400.........         $.0060                $.0038
More than 8,400 but not more         $.0025                $.0010
 than 8,550.
More than 8,550 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                  ``(B) In the case of a facility originally placed in 
                service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,770.........         $.0105                $.0090
More than 7,770 but not more         $.0085                $.0068
 than 8,125.
More than 8,125 but not more         $.0075                $.0055.
 than 8,350.
------------------------------------------------------------------------

                  ``(C) In the case of a facility originally placed in 
                service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,380.........         $.0140                 $.01
More than 7,380 but not more         $.0120                $.0090.
 than 7,720.
------------------------------------------------------------------------

          ``(2) Where the design coal has a heat content of not more 
        than 9,000 Btu per pound:
                  ``(A) In the case of a facility originally placed in 
                service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,500.........         $.0060                $.0038
More than 8,500 but not more         $.0025                $.0010
 than 8,650.
More than 8,650 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                  ``(B) In the case of a facility originally placed in 
                service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,000.........         $.0105                 $.009
More than 8,000 but not more         $.0085                $.0068
 than 8,250.
More than 8,250 but not more         $.0075                $.0055.
 than 8,400.
------------------------------------------------------------------------

                  ``(C) In the case of a facility originally placed in 
                service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,800.........         $.0140                $.0115
More than 7,800 but not more         $.0120                $.0090.
 than 7,950.
------------------------------------------------------------------------

          ``(3) Where the clean coal technology facility is producing 
        fuel or chemicals:
                  ``(A) In the case of a facility originally placed in 
                service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 40.6 percent..         $.0060                $.0038
Less than 40.6 but not less          $.0025                $.0010
 than 40 percent.
Less than 40 but not less            $.0010                $.0010.
 than 39 percent.
------------------------------------------------------------------------

                  ``(B) In the case of a facility originally placed in 
                service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 43.9 percent..         $.0105                 $.009
Less than 43.9 but not less          $.0085                $.0068
 than 42 percent.
Less than 42 but not less            $.0075                $.0055.
 than 40.9 percent.
------------------------------------------------------------------------

                  ``(C) In the case of a facility originally placed in 
                service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 44.2 percent..         $.0140                $.0115
Less than 44.2 but not less          $.0120                $.0090.
 than 43.6 percent.
------------------------------------------------------------------------

  ``(c) Inflation Adjustment Factor.--For calendar years after 2001, 
each amount in paragraphs (1), (2), and (3) shall be adjusted by 
multiplying such amount by the inflation adjustment factor for the 
calendar year in which the amount is applied. If any amount as 
increased under the preceding sentence is not a multiple of 0.01 cent, 
such amount shall be rounded to the nearest multiple of 0.01 cent.
  ``(d) Definitions and Special Rules.--For purposes of this section--
          ``(1) In general.--Any term used in this section which is 
        also used in section 48B shall have the meaning given such term 
        in section 48B.
          ``(2) Applicable rules.--The rules of paragraphs (3), (4), 
        and (5) of section 45 shall apply.
          ``(3) Inflation adjustment factor.--The term `inflation 
        adjustment factor' means, with respect to a calendar year, a 
        fraction the numerator of which is the GDP implicit price 
        deflator for the preceding calendar year and the denominator of 
        which is the GDP implicit price deflator for the calendar year 
        2001.
          ``(4) GDP implicit price deflator.--The term `GDP implicit 
        price deflator' means the most recent revision of the implicit 
        price deflator for the gross domestic product as computed by 
        the Department of Commerce before March 15 of the calendar 
        year.''.
  (b) Credit Treated as Business Credit.--Section 38(b) of the Internal 
Revenue Code of 1986, as amended by section 202(b), is amended by 
striking ``plus'' at the end of paragraph (15), by striking the period 
at the end of paragraph (16) and inserting ``, plus'', and by adding at 
the end the following:
          ``(17) the qualifying advanced clean coal technology 
        production credit determined under section 45H(a).''.
  (c) Transitional Rule.--Section 39(d) of the Internal Revenue Code of 
1986 (relating to transitional rules), as amended by section 301(d), is 
amended by adding at the end the following:
          ``(14) No carryback of section 45h credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying advanced clean 
        coal technology production credit determined under section 45H 
        may be carried back to a taxable year ending before the date of 
        enactment of section 45H.''.
  (d) Clerical Amendment.--The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, 
as amended by section 202(d), is amended by adding at the end the 
following:

                              ``Sec. 45H. Credit for production from 
                                        qualifying advanced clean coal 
                                        technology.''.
  (e) Effective Date.--The amendments made by this section shall apply 
to production after the date of enactment of this Act.

SEC. 533. RISK POOL FOR QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY.

  (a) Establishment.--The Secretary of the Treasury shall establish a 
financial risk pool which shall be available to any United States owner 
of a qualifying advanced clean coal technology which has qualified for 
an advanced clean coal technology production credit (as defined in 
section 45H of the Internal Revenue Code of 1986, as added by section 
302) to offset for the first 3 years of the operation of such 
technology the costs (not to exceed 5 percent of the total cost of 
installation) for modifications resulting from the technology's failure 
to achieve its design performance.
  (b) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to carry out the purposes of 
this section.

    Subtitle D--Treatment of Certain Governmental and Other Entities

SEC. 541. CREDITS FOR CERTAIN ORGANIZATIONS AND GOVERNMENTAL UNITS.

  Section 6401(b) of the Internal Revenue Code of 1986 (relating to 
excessive credits) is amended by adding at the end the following:
          ``(3) Credits for certain organizations and governmental 
        units.--
                  ``(A) Allowance of credits.--Any credit which would 
                be allowable under section 45G, 45H, 48A, or 48B with 
                respect to a facility of an entity whether or not such 
                entity is exempt from tax, shall be treated as a credit 
                allowable under subpart C of part IV of subchapter A of 
                chapter 1 of subtitle A to such entity if such entity 
                is--
                          ``(i) an organization described in section 
                        501(c)(12)(C) and exempt from tax under section 
                        501(a),
                          ``(ii) an organization described in section 
                        1381(a)(2)(C),
                          ``(iii) a public utility (as defined in 
                        section 136(c)(2)(B)),
                          ``(iv) a State, the District of Columbia, or 
                        a possession of the United States, or any 
                        political subdivision thereof, or
                          ``(v) the Tennessee Valley Authority.
                  ``(B) Use of credit.--
                          ``(i) Transfer of credit.--An entity 
                        described in clause (i), (ii), (iii), or (iv) 
                        of subparagraph (A) may assign, trade, sell, or 
                        otherwise transfer any credit allowable to such 
                        entity under subparagraph (A) to any other 
                        person or entity.
                          ``(ii) Use of credit as an offset.--
                        Notwithstanding any other provision of law, in 
                        the case of any entity described in clause (i) 
                        or (ii) of subparagraph (A), any credit 
                        allowable to such entity under subparagraph (A) 
                        may be applied by such entity, without penalty, 
                        as a prepayment of any loan, debt or other 
                        obligation the entity has made, incurred or 
                        guaranteed under the Rural Electrification Act 
                        of 1936 (7 U.S.C. 901 et seq.).
                          ``(iii) Use by tva.--
                                  ``(I) In general.--Notwithstanding 
                                any other provision of law, in the case 
                                of an entity described in subparagraph 
                                (A)(v), any credit allowable under 
                                subparagraph (A) to such entity may be 
                                applied as a credit against the 
                                payments required to be made in any 
                                fiscal year under section 15d(e) of the 
                                Tennessee Valley Authority Act of 1933 
                                (16 U.S.C. 83ln-4(e)) as an annual 
                                return on the appropriations investment 
                                and an annual repayment sum.
                                  ``(II) Treatment of credits.--The 
                                aggregate amount of credits described 
                                in subparagraph (A) shall be treated in 
                                the same manner and to the same extent 
                                as if such credits were a payment in 
                                cash and shall be applied first against 
                                the annual return on the appropriations 
                                investment.
                                  ``(III) Credit carryover.--With 
                                respect to any fiscal year, if the 
                                aggregate amount of the credits 
                                described in subparagraph (A) exceeds 
                                the aggregate amount of payment 
                                obligations described in subclause (I), 
                                the excess amount shall remain 
                                available for application as credits 
                                against the amounts of such payment 
                                obligations in succeeding fiscal years 
                                in the same manner as described in this 
                                clause.
                  ``(C) Credit not income.--Neither a transfer under 
                clause (i) nor a use under clause (ii) of subparagraph 
                (B) of any credit allowable under subparagraph (A) 
                shall result in income for purposes of section 
                501(c)(12).
                  ``(D) Transfer proceeds treated as arising from 
                essential government function.--Any proceeds derived by 
                an entity described in clause (iii) or (iv) of 
                subparagraph (A) from the transfer of any such credit 
                under subparagraph (B)(I) shall be treated as arising 
                from an essential government function.
                  ``(E) Treatment of unrelated persons.--For purposes 
                of this title, sales among and between entities 
                described in clauses (i), (ii), (iii), and (iv) of 
                subparagraph (A) shall be treated as sales between 
                unrelated parties.''.

                            TITLE VI--FUELS

SEC. 601. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.

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

SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.

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

SEC. 603. BOUTIQUE FUELS.

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

SEC. 604. FUNDING FOR MTBE CONTAMINATION.

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

                      TITLE VII--RENEWABLE ENERGY

SEC. 701. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

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

SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.

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

                     TITLE VIII--PIPELINE INTEGRITY

                     Subtitle A--Pipeline Integrity

SEC. 801. PROGRAM FOR PIPELINE INTEGRITY RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION.

  (a) In General.--The Secretary of Transportation, in coordination 
with the Secretary of Energy, and in consultation with the Federal 
Energy Regulatory Commission, shall develop and implement an 
accelerated cooperative program of research, development, and 
demonstration to ensure the integrity of natural gas and hazardous 
liquid pipelines. This program shall include materials inspection 
techniques, risk assessment methodology, and information systems 
surety.
  (b) Purpose.--The purpose of the cooperative research program shall 
be to promote research, development, and demonstration to--
          (1) ensure long-term safety, reliability, and service life 
        for existing pipelines;
          (2) expand capabilities of internal inspection devices to 
        identify and accurately measure defects and anomalies;
          (3) develop inspection techniques for pipelines that cannot 
        accommodate the internal inspection devices;
          (4) develop innovative techniques to measure the structural 
        integrity of pipelines to prevent pipeline failures;
          (5) develop improved materials and coatings for use in 
        pipelines;
          (6) improve the capability, reliability, and practicality of 
        external leak detection devices;
          (7) identify underground environments that might lead to 
        shortened service life;
          (8) enhance safety in pipeline siting and land use;
          (9) minimize the environmental impact of pipelines;
          (10) demonstrate technologies that improve pipeline safety, 
        reliability, and integrity;
          (11) provide risk assessment tools for optimizing risk 
        mitigation strategies; and
          (12) provide highly secure information systems for 
        controlling the operation of pipelines.
    (c) Areas.--In carrying out this subtitle, the Secretary of 
Transportation, in coordination with the Secretary of Energy, shall 
consider research, development, and demonstration on natural gas, crude 
oil, and petroleum product pipelines for--
          (1) early crack, defect, and damage detection, including 
        real-time damage monitoring;
          (2) automated internal pipeline inspection sensor systems;
          (3) land use guidance and set back management along pipeline 
        rights-of-way for communities;
          (4) internal corrosion control;
          (5) corrosion-resistant coatings;
          (6) improved cathodic protection;
          (7) inspection techniques where internal inspection is not 
        feasible, including measurement of structural integrity;
          (8) external leak detection, including portable real-time 
        video imaging technology, and the advancement of computerized 
        control center leak detection systems utilizing real-time 
        remote field data input;
          (9) longer life, high strength, noncorrosive pipeline 
        materials;
          (10) assessing the remaining strength of existing pipes;
          (11) risk and reliability analysis models, to be used to 
        identify safety improvements that could be realized in the near 
        term resulting from analysis of data obtained from a pipeline 
        performance tracking initiative;
          (12) identification, monitoring, and prevention of outside 
        force damage, including satellite surveillance; and
          (13) any other areas necessary to ensuring the public safety 
        and protecting the environment.
  (d) Research, Development, and Demonstration Program Plan.--Within 
240 days after the date of enactment of this Act, the Secretary of 
Transportation, in coordination with the Secretary of Energy, the 
Federal Energy Regulatory Commission, and the Pipeline Integrity 
Technical Advisory Committee, shall prepare and submit to the Congress 
a 5-year program plan to guide activities under this subtitle. In 
preparing the program plan, the Secretary shall consult with 
appropriate representatives of the natural gas, crude oil, and 
petroleum product pipeline industries to select and prioritize 
appropriate project proposals. The Secretary may also seek the advice 
of utilities, manufacturers, institutions of higher learning, Federal 
agencies, the pipeline research institutions, national laboratories, 
State pipeline safety officials, environmental organizations, pipeline 
safety advocates, and professional and technical societies.
  (e) Implementation.--The Secretary of Transportation shall have 
primary responsibility for ensuring the five-year plan provided for in 
subsection (d) is implemented as intended by this subtitle.
  (f) Reports to Congress.--The Secretary of Transportation shall 
report to the Committee on Energy and Commerce and the Committee on 
Transportation and Infrastructure of the House of Representatives, and 
to the Committee on Energy and Natural Resources and the Committee on 
Commerce, Science, and Transportation of the Senate, annually as to the 
status and results to date of the implementation of the program plan. 
The report shall include the activities of the Departments of 
Transportation and Energy, the national laboratories, universities, and 
any other research organizations, including industry research 
organizations.

SEC. 802. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.

  (a) Establishment.--The Secretary of Transportation shall enter into 
appropriate arrangements with the National Academy of Sciences to 
establish and manage the Pipeline Integrity Technical Advisory 
Committee for the purpose of advising the Secretary of Transportation 
and the Secretary of Energy on the development and implementation of 
the five-year research, development, and demonstration program plan 
under section 801(d). The Advisory Committee shall have an ongoing role 
in evaluating the progress and results of the research, development, 
and demonstration carried out under this subtitle.
  (b) Membership.--The National Academy of Sciences shall appoint the 
members of the Pipeline Integrity Technical Advisory Committee after 
consultation with the Secretary of Transportation and the Secretary of 
Energy. The Advisory Committee shall also have 1 member from the 
Federal Energy Regulatory Commission. Members appointed to the Advisory 
Committee should have the necessary qualifications to provide technical 
contributions to the purposes of the Advisory Committee.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization from User Fees.--There are authorized to be 
appropriated to the Secretary of Transportation for carrying out this 
subtitle $3,000,000, which is to be derived from user fees under 
section 60125 of title 49, United States Code, for each of the fiscal 
years 2002 through 2006.
  (b) Detection, Prevention, and Mitigation.--There are authorized to 
be appropriated to the Secretary of Transportation from the Oil Spill 
Liability Trust Fund (26 U.S.C. 9509), $3,000,000 to carry out programs 
for detection, prevention, and mitigation of oil spills authorized in 
this subtitle for each of the fiscal years 2002 through 2006.
  (c) General Authorization.--There are authorized to be appropriated 
to the Secretary of Energy for carrying out this subtitle such sums as 
may be necessary for each of the fiscal years 2002 through 2006.

                 Subtitle B--Other Pipeline Provisions

SEC. 811. PROHIBITION ON CERTAIN PIPELINE ROUTE.

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

SEC. 812. HISTORIC PIPELINES.

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

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.

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

SEC. 902. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.

  (a) Report.--The Secretary of Energy, in consultation with the heads 
of other relevant Federal agencies, shall include in each report under 
section 801(c) of the Department of Energy Organization Act a section 
which evaluates the progress the United States has made toward 
obtaining the goal of not more than 50 percent dependence on foreign 
oil sources by 2010.
  (b) Alternatives.--The information required under this section to be 
included in the reports under section 801(c) of the Department of 
Energy Organization Act shall include a specification of what 
legislative or administrative actions must be implemented to meet this 
goal and set forth a range of options and alternatives with a cost/
benefit analysis for each option or alternative together with an 
estimate of the contribution each option or alternative could make to 
reduce foreign oil imports. The Secretary shall solicit information 
from the public and request information from the Energy Information 
Agency and other agencies to develop the information required under 
this section. The information shall indicate, in detail, options and 
alternatives to--
          (1) increase the use of renewable domestic energy sources, 
        including conventional and nonconventional sources;
          (2) conserve energy resources, including improving 
        efficiencies and decreasing consumption; and
          (3) increase domestic production and use of oil, natural gas, 
        nuclear, and coal, including any actions necessary to provide 
        access to, and transportation of, these energy resources.

SEC. 903. STUDY OF AIRCRAFT EMISSIONS.

  The Administrator of the Environmental Protection Agency, in 
consultation with the Secretary of Transportation shall commence a 
study within 60 days after the enactment of this Act to investigate the 
impact of aircraft emissions at all airports located within areas that 
are considered to be in nonattainment for the national ambient air 
quality standard for ozone. As part of such study, the Administrator 
should investigate all significant factors which may serve to increase 
air emission levels from airports and use the most recent data 
available. Within 180 days of the enactment of this Act, the 
Administrator shall submit a report to the Committee on Energy and 
Commerce of the United States House of Representatives and to the 
Committee on Energy and Natural Resources of the United States Senate 
containing the results of the study and recommendations with respect to 
a plan to maintain comprehensive data on aircraft emissions and methods 
by which such emissions may be reduced in order to assist in the 
attainment of the national ambient air quality standard for ozone.

                          Purpose and Summary

    The purpose of H.R. 2587, the Energy Advancement and 
Conservation Act, is to promote increased energy conservation 
and increase the availability of energy supplies nationwide. 
Recent high prices for energy underscore the importance of a 
comprehensive review of our Nation's energy policies and 
objectives. The Energy Advancement and Conservation Act is the 
first step toward ensuring our Nation's continued welfare and 
security by providing for our long-term energy needs.
    Energy production and environmental protection are non-
exclusive national goals. In recent decades, technological 
advances have made energy development and use more efficient 
and less environmentally harmful. Building on this trend, the 
Energy Advancement and Conservation Act encourages energy 
production and demand reduction by promoting new technology, 
more efficient processes, and improved public awareness.
    The Energy Advancement and Conservation Act addresses a 
wide range of issues related to energy generation, 
transportation, and use. It provides for accelerated market 
penetration for clean coal technologies, streamlined 
reformulated fuel programs, and promotion of energy 
conservation and efficiency, including increased efficiency for 
light trucks. The bill also provides for improvements in the 
hydropower licensing process and will remove barriers to 
expanded use of nuclear energy. Finally, the bill addresses 
several issues related to interstate pipelines, along with a 
number of other, miscellaneous energy-related issues.

                  Background and Need for Legislation

    According to the Energy Information Administration, over 
the next 20 years, growth in U.S. energy consumption will 
increasingly outpace energy production. To meet our Nation's 
projected demands for energy, legislation is needed to 
facilitate further development of new energy supplies and 
better management of energy use. Numerous factors combine to 
increase energy supplies and improve efficiency and 
conservation; these include, among others, technological 
achievement, consumer preference, manufacturer decisions, 
construction design and techniques, and government action at 
the Federal, state and local levels.
    Conservation and increased energy efficiency allow us to 
manage existing energy supplies better. Energy intensity, the 
amount of energy it takes to produce one dollar of gross 
domestic product, has steadily declined in the United States 
over the past three decades. During that period, the economy 
grew by 126 percent, while energy consumption increased by only 
30 percent. Whereas about half of this decline in energy 
intensity is attributable to the switch from a manufacturing to 
a service economy, the other half is attributable to increased 
efficiency. Gains in energy efficiency over the past 30 years 
have largely been a result of advances in technology, along 
with better management practices and better application of 
these new technologies. Consumer choice is a driver of energy 
efficiency, and Federal programs such as Energy Star energy 
labels help consumers make informed purchasing decisions. 
Federal and state governments are large users of energy and 
promoteenergy efficiency by investing in research and procuring 
efficient products. For example, the Energy Policy and Conservation Act 
(EPCA) directs the Secretary of Energy to establish minimum efficiency 
standards for a number of appliances. These programs, and others like 
them, combine to provide for more efficient use of existing energy 
supplies.
    EPCA also directs the Secretary of Transportation to 
establish corporate average fuel economy (CAFE) standards for 
non-passenger automobiles, which include sport utility 
vehicles, vans, pickups, and minivans. As its name implies, the 
CAFE program sets fuel efficiency standards for automobiles. 
CAFE is implemented through regulations promulgated by the 
Secretary of Transportation through the National Highway 
Traffic Safety Administration (NHTSA). The CAFE standard for 
passenger automobiles is set by existing statute at 27.5 mpg. 
By regulation, the Secretary of Transportation has set the CAFE 
standard for non-passenger automobiles (light trucks) at 20.7 
mpg. Compliance with the standards is measured by calculating 
the harmonic average of the fuel economies of a given 
manufacturer's production. For passenger automobiles, 
domestically produced and imported vehicles are measured 
separately. If our Nation is to meet its energy needs in the 
coming decades, we must continue to make advances in energy 
efficiency and conservation.
    Nuclear energy provides 20 percent of the Nation's 
electricity. The Nuclear Regulatory Commission (NRC) has not 
issued a license to construct a new nuclear power plant in 20 
years. As recently as a few years ago, it was thought that most 
of the existing fleet of nuclear reactors would be closed over 
the next 30 years. Recently, however, several companies have 
expressed a renewed interest in extending licenses for existing 
nuclear plants, as well as constructing a new generation of 
advanced nuclear plants that are smaller, cheaper to build, and 
easier to operate.
    There are several areas where legislation is needed to 
facilitate the continued development of nuclear power. These 
include, among others, addressing issues related to the 
disposal of nuclear waste, clarification of NRC licensing 
rules, and providing the NRC additional authority to recover 
fees from Federal licensees. Additionally, domestic uranium 
fuel cycle industries (including uranium mining, uranium 
conversion, and uranium enrichment industries) have come under 
market pressure over the past decade, the result of which 
threatens the viability of the domestic uranium industry. The 
continued development of nuclear power may be determined, in 
part, by the availability of domestic uranium fuel capacity.
    Over the next 15 years, the Federal Energy Regulatory 
Commission (FERC) must consider relicensing more than half of 
our Nation's hydroelectric power projects (roughly 28,000 
megawatts) if those projects are to continue in operation. 
Current law gives states and the Federal resources agencies 
(U.S. Fish and Wildlife Service, U.S. Forest Service, and 
National Marine Fisheries Service) authority to impose 
mandatory conditions on FERC-issued hydroelectric power 
licenses. The number of parties to the licensing process, the 
competing interests and missions, and open-ended proceedings 
often contribute to the time and costs involved in obtaining a 
hydroelectric license from FERC.
    One area identified to improve the licensing process is to 
require agencies to consider alternative conditions proposed by 
a licensee. Current law does not require resources agencies to 
consider alternative conditions that may cost less to implement 
in terms of dollars and energy lost, while providing for 
greater, or at a minimum no less, environmental protection. 
Another area identified for improvement is FERC data collection 
on the time and costs involved in obtaining a new license, 
which will lead to more efficient relicensing procedures.
    The United States currently generates just over half (51 
percent) of its total electric power by burning coal, and 
contains an estimated 25 percent of the world's total 
recoverable reserves of coal. The EIA projects that the United 
States will largely maintain this reliance on coal over the 
next two decades. While coal produces the majority of our 
country's electricity, few companies have plans for building 
new coal-fired electric generation plants. This is due, in 
part, to low natural gas prices over the past few years and 
uncertainty over future environmental requirements and market 
structures for electric power generation. The high capital 
costs and high operating costs of currently available clean 
coal technology made natural gas-fired generation the cost-
effective choice for new power plants in recent years. However, 
recent high natural gas prices and increased projected demand 
for natural gas have some companies reconsidering coal as an 
option. Additional advancesin clean coal technologies are 
needed to ensure that coal remains an affordable source of electricity.
    The Clean Air Act (CAA) generally provides for the 
regulation and registration of fuels and fuel additives. The 
1990 Clean Air Act Amendments (1990 amendments) further 
provided for the creation of reformulated gasoline (RFG) and 
required the sale of this fuel in large urban areas that were 
experiencing the most serious ozone pollution. The CAA 
contemplates that there can be differences in fuels and fuel 
additives sold in different parts of the country. State and 
local governments have enacted their own requirements for fuels 
and fuel additives since the 1990 amendments were enacted. This 
multiplicity of different fuels has been termed the ``boutique 
fuels'' situation, and has been criticized as contributing to 
problems in fuel distribution and price spikes that occur when 
fuel cannot be easily moved from one area to the next. Federal 
legislation is needed to provide for a comprehensive review of 
Federal, state, and local fuel requirements.
    Renewable energy sources currently represent about 8 
percent of our Nation's energy consumption. According to the 
EIA, half of this amount (49 percent) is hydroelectric power, 
and roughly the other half (44 percent) is biomass, mostly 
wood. Solar, wind and geothermal power make up the remainder, 
approximately 0.5 percent of our Nation's energy consumption. 
The Energy Policy Act of 1992 created the Renewable Energy 
Production Incentive (REPI) program to encourage energy 
production from renewable energy projects owned by municipal 
utilities or other non-profit entities that otherwise do not 
qualify for tax incentives for renewable energy production. 
REPI provides direct payment of 1.7 cents per kilowatt-hour to 
qualifying owners for each kilowatt-hour of electricity 
produced at qualifying facilities. Payments are contingent upon 
Congressional funding.
    When implementing REPI, the Department of Energy 
established two tiers of technologies eligible for payment. 
Tier I technologies are paid in full and paid first with 
available funds. Tier II technologies are paid pro rata with 
the remaining funds. Since its inception, the number of REPI 
claims has exceeded available funding. The largest producing 
projects in terms of electric power produced tend to be Tier II 
technologies. The municipal utilities and others eligible for 
payment under this program advocate for removal of the two-
tiered approach.
    Natural gas is the fastest growing source of energy in the 
United States. Much of the demand for natural gas comes from 
new, more efficient turbines used to generate electricity. 
Delivery of natural gas from suppliers to end-users depends on 
a complex nationwide system of pipelines. Pipelines are also 
used to transport oil, refined products, and hazardous liquids 
throughout the country. Ensuring the integrity of our Nation's 
interstate pipelines is important to guaranteeing the 
availability of affordable energy supplies, and the Committee 
intends to consider legislation to improve the safety of 
interstate pipelines in the near future.

                                Hearings

    The Subcommittee on Energy and Air Quality held the first 
in a series of hearings on a comprehensive national energy 
policy on February 28, 2001. The hearing topic was natural gas, 
focusing on ways to increase the supply and availability of 
natural gas to American consumers. The Committee received 
testimony from: The Honorable Curt Herbert, Jr., Chairman, 
Federal Energy Regulatory Commission; Ms. Elizabeth Campbell, 
Energy Information Administration; Mr. Cuba Wadlington, 
President and Chief Executive Officer, Williams Gas Pipeline, 
on behalf of Interstate Natural Gas Association of America; Mr. 
Jerry Jordon, Chairman, Jordon Energy, Incorporated, on behalf 
of Independent Petroleum Association of America; Mr. Richard G. 
Reiten, President and Chief Executive Officer, NW Natural, on 
behalf of the American Gas Association; Mr. Andrew Littlefair, 
President, Pickens Fuel Corporation, on behalf of the Natural 
Gas Vehicle Coalition; Ms. Roberta A. Luxbacher, Vice 
President-Americas, Exxon Mobile Gas Marketing Company, on 
behalf of the Natural Gas Supply Association; Mr. Walker 
Hendrix, Counsel, Kansas Citizens Utility Ratepayers Board; Mr. 
Jack Hilliard, General Manager, Florence Utility, on behalf of 
the American Public Gas Association; Mr. Jas Gill, Vice 
President, Manufacturing, CYTEC Industries, Incorporated, and 
Mr. Patricio Silva, Project Attorney, Natural Resources Defense 
Council.
    The Subcommittee on Energy and Air Quality held the second 
in a series of hearings on a comprehensive national energy 
policy on March 14, 2001. The hearing topic was the future of 
coal power, focusing on advances in clean coal technology. The 
Committee received testimony from: Ms. Mary Hutzler, Director, 
Office of Integrated Analysis and Forecasting, Energy 
Information Agency; U.S. Department of Energy,Mr. Richard 
Abdoo, Chairman, President, and Chief Executive Officer, Wisconsin 
Energy Corporation; Mr. J. Brett Harvey, President and Chief Executive 
Officer, CONSOL Energy Incorporated; Mr. Cecil Roberts, President, 
United Mine Workers of America; Dr. Roe-Hoan Yoon, Director, Virginia 
Center for Coal and Minerals Processing, Virginia Polytechnic Institute 
and State University; Mr. Bill Gregg, Director, Public Service 
Commission of West Virginia; Mr. Edwin Pinero, Director of Program 
Operations, Pennsylvania Department of Environmental Protection; and 
Mr. Armond Cohen, Executive Director, Clean Air Task Force.
    The Subcommittee on Energy and Air Quality held the third 
in a series of hearings on a comprehensive national energy 
policy on March 27, 2001. The hearing topic was nuclear energy, 
focusing on increases in efficiency and safety along with 
decreases in costs in current nuclear generation and the future 
uses of nuclear power for American consumers. The Committee 
received testimony from: The Honorable Pete V. Domenici, U.S. 
Senator; Dr. William D. Travers, Executive Director for 
Operations, U.S. Nuclear Regulatory Commission; Mr. William D. 
Magwood, Director, Office of Nuclear Energy, Science, and 
Technology, U.S. Department of Energy; Ms. Mary J. Hutzler, 
Director, Office of Integrated Analysis and Forecasting, Energy 
Information Administration, U.S. Department of Energy; Mr. C. 
Randy Hutchinson, Senior Vice President, Business Development, 
Entergy Nuclear, on behalf of the Nuclear Energy Institute; Mr. 
A.C. Tollison, Jr., Executive Vice President, Institute of 
Nuclear Power Operations; Mr. Ward Sproat, Vice President of 
International Programs, Exelon Corporation; Mr. John R. 
Longenecker, Longenecker & Associates, Inc.; and Ms. Anna 
Aurilio, Legislative Director, U.S. Public Interest Research 
Group.
    The Subcommittee on Energy and Air Quality held the fourth 
in a series of hearings on a comprehensive national energy 
policy on March 30, 2001. The hearing topic was crude oil and 
refined petroleum products, focusing on ways to increase the 
supply of crude oil and conservation of petroleum products 
through energy efficient technology. The Committee received 
testimony from: Mr. John Cook, Director, Petroleum Products 
Division, Energy Information Administration; Mr. Stephen D. 
Layton, President and Chief Executive Officer, Equinox Oil 
Company; Mr. Gregory C. King, Vice President and General 
Counsel, Valero Energy Corporation; Mr. Peter D'Arco, 
President, SJ Fuels; Mr. Thomas L. Robinson, Chief Executive 
Officer, Robinson Oil Corporation; Mr. Richard Kassel, Senior 
Attorney, Natural Resources Defense Council; and Mr. John Paul 
Pitts, Oil Editor, Midland Reporter Telegram.
    The Subcommittee on Energy and Air Quality held the fifth 
in a series of hearings on a comprehensive national energy 
policy on May 15, 2001. The hearing topic was consumer 
perspectives on energy policy, focusing on the Nation's long-
term energy needs and ways to increase supply to meet new 
demand. The Committee received testimony from: Mr. John Cook, 
Director, Petroleum Products Division, Energy Information 
Administration, U.S. Department of Energy; Mr. Lee Ottenberg, 
President, Ottenberg's Bakery; Mr. James G. Parkel, President-
Elect, American Association of Retired Persons; Mr. Mark 
McCutchen, President and General Manager, Tennessee Energy 
Acquisition Corporation; Mr. Mahlon Anderson, Director, Public 
Affairs, American Automobile Association: Mid-Atlantic; Mr. 
Glen N. Buckley, Chief Economist and Director of Agribusiness, 
CF Industries, Incorporated; and Mr. Johnny Duke, National 
Director, Facilities Management, Kmart Corporation.
    The Subcommittee on Energy and Air Quality held a hearing 
on the National Energy Policy Report of the National Energy 
Policy Development Group on June 13, 2001. The hearing focused 
on President Bush's proposal for a comprehensive approach to 
national energy policy, including reduction of demand and 
conservation of the current energy supply. The Committee 
received testimony from: The Honorable Spencer Abraham, 
Secretary, U.S. Department of Energy.
    The Subcommittee on Energy and Air Quality held the sixth 
in a series of hearings on a comprehensive national energy 
policy on June 22, 2001. The hearing topic was energy 
efficiency and conservation, focusing on ways to improve 
National efforts to accelerate efficiency and conservation. The 
Committee received testimony from: The Honorable David Garman, 
Assistant Secretary for Energy Efficiency and Renewable Energy, 
U.S. Department of Energy; Mr. Frederick H. Hoover, Jr., 
Director, Maryland Energy Administration, on behalf of the 
National Association of State Energy Officials; Mr. Steven 
Nadel, Executive Director, American Council for an Energy-
Efficient Economy; Mr. Mark Wagner, Director, Johnson Controls, 
Incorporated; Dr.Malcolm O'Hagan, President, National 
Electrical Manufacturers Association; Ms. Josephine Cooper, President, 
Alliance of Automobile Manufacturers; Mr. David Nemtzow, President, 
Alliance to Save Energy; Mr. Gary Swofford, Vice President and Chief 
Operating Officer--Delivery, Puget Sound Energy; Mr. Mark Rodgers, 
Chief Executive Officer, SmartSynch, Incorporated; Dr. Dean Peterson, 
Center Leader, Superconductivity Technology Center, Los Alamos National 
Laboratories; Mr. Patricio Silva, Project Attorney, Natural Resources 
Defense Council; and Mr. Jordan Clark, President, United Homeowners 
Association.
    The Subcommittee on Energy and Air Quality held the seventh 
in a series of hearings on a comprehensive national energy 
policy on June 27, 2001. The hearing topic was nuclear energy 
and hydroelectric power and their role in meeting the long-term 
energy needs of the United States. The Committee received 
testimony from: The Honorable Richard A. Meserve, Chairman, 
U.S. Nuclear Regulatory Commission; Mr. William D. Magwood, 
Director, Office of Nuclear Energy, Science, and Technology, 
U.S. Department of Energy; Mr. Marvin Fertel, Senior Vice 
President of Business Operations, Nuclear Energy Institute; Mr. 
Jack Skolds, Chief Operating Officer, Exelon Nuclear; Mr. 
George Davis, Director of Government Programs and Nuclear 
Systems, Westinghouse Electric Company; Mr. Laurence L. Parme, 
General Atomics; Dr. E. Allen Womack, President, BWX 
Technology, Inc., on behalf of Energy Contractors Price 
Anderson Group; Mr. John Quattrocchi, Senior Vice President of 
Underwriting, American Nuclear Insurers; Ms. Anna Aurilio, 
Legislative Director, U.S. Public Interest Research Group; The 
Honorable Curtis L. Hebert, Jr., Chairman, Federal Energy 
Regulatory Commission, accompanied by Mr. J. Mark Robinson, 
Director, Office of Energy Projects, and Ms. Kristina Nygaard, 
Associate Counsel for Energy Projects, Office of General 
Counsel; Mr. Barry Hill, Director, General Accounting Office, 
accompanied by Mr. Charles S. Cotton, Assistant Director and 
Ms. Erin Barlow, Senior Analyst; Mr. John Prescott, Vice 
President of Generation, Idaho Power Company; Ms. S. Elizabeth 
Birnbaum, Director of Government Affairs, American Rivers; and 
Mr. Ronald Shems, Attorney, on behalf of the Vermont Agency of 
Natural Resources.

                        Committee Consideration

    On Tuesday, July 10, Wednesday, July 11, and Thursday, July 
12, 2001, the Subcommittee on Energy and Air Quality met in 
open markup session and approved a committee print, amended, by 
a roll call vote of 29 yeas and 1 nay for Full Committee 
consideration, a quorum being present. On Tuesday, July 17, 
Wednesday, July 18, and Thursday, July 19, 2001, the Full 
Committee met in open markup session and favorably ordered 
reported the committee print, amended, as a clean bill (H.R. 
2587) to be introduced, by a roll call vote of 50 yeas and 5 
nays, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
following are the recorded votes taken on the motion by Mr. 
Tauzin to order H.R. 2587 reported to the House, and on 
amendments offered to the measure, including the names of those 
members voting for and against.



                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held oversight hearings 
and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 2587 is to enhance energy conservation and 
increase the supply of various energy sources for the American 
people.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2587, the Energy Advancement and Conservation Act of 2001, 
would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

  Committee Cost Estimate, Congressional Budget Office Estimate, and 
                       Federal Mandates Statement

    The Congressional Budget Office estimate required pursuant 
to clause 3(c)(3) of rule XIII of the Rules of the House of 
Representatives section 402 of the Congressional Budget Act of 
1974, and the estimate of Federal mandates required pursuant to 
section 423 of the Unfunded Mandates Reform Act were requested 
from the Congressional Budget Office, but were not prepared as 
of the date of filing of this report. The Congressional Budget 
Office estimate and accompanying materials will be contained in 
a supplemental report.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                  Exchange of Committee Correspondence

                          Committee on Energy and Commerce,
                                     Washington, DC, July 25, 2001.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce, House of 
        Representatives, Rayburn House Office Building, Washington, DC.
    Dear Chairman Boehner: Thank you for your letter regarding 
to H.R. 2587, the Energy Advancement and Conservation Act of 
2001.
    I appreciate your willingness not to seek a referral of 
H.S. 2587. I agree that your decision to forgo action on the 
bill will not prejudice the Committee on Education and the 
Workforce with respect to its jurisdictional prerogatives on 
this or similar legislation. Further, I recognize your right to 
request conferees on those provisions within the Committee on 
Education and the Workforce's jurisdiction should they be the 
subject of a House-Senate conference.
    I will include your letter and this response in the 
Committee's report on H.R. 2587, and I look forward to working 
with you as we bring comprehensive energy legislation to the 
Floor.
            Sincerely,
                                     W.J. ``Billy'' Tauzin,
                                                          Chairman.
                                ------                                  


                             Committee on Education
                                         and the Workforce,
                                     Washington, DC, July 24, 2001.
Hon. W.J. (Billy) Tauzin,
Chairman, Committee on Energy and Commerce,
Rayburn HOB, Washington, DC.
    Dear Chairman Tauzin: Thank you for working with me 
regarding H.R. 2587, the Energy Advancement and Conservation 
Act, which was referred to the Committee on the Committee on 
Energy and Commerce, and in addition to the Committees on Ways 
and Means, Science, Transportation and Infrastructure, the 
Budget, and Education and the Workforce. As you know, the 
Committee on Education and Workforce holds a jurisdictional 
interest in this legislation specifically provisions Section 
134 dealing with the Low Income Home Energy Assistance Program 
(LIHEAP); I appreciate your acknowledgment of that 
jurisdictional interest. I understand the desire to have this 
legislation considered expeditiously by the House; hence, I do 
not intend to hold a hearing or markup on this legislation.
    In agreeing to waive consideration by our Committee, I 
would expect you to agree that this procedural route should not 
be construed to prejudice the Committee on Education and the 
Workforce's jurisdictional interest and prerogatives on this or 
any similar legislation and will not be considered as precedent 
for consideration of matters of jurisdictional interest to my 
Committee in the future. I would also expect your support in my 
request to the Speaker for the appointment of conferees from my 
Committee with respect to matters within the jurisdiction of my 
Committee should a conference with the Senate be convened on 
this or similar legislation.
    I would appreciate your including our exchange of letters 
in your Committee's report to accompany H.R. 2587. Again, I 
thank you for working with me in developing this legislation 
and I look forward to working with you on these issues in the 
future.
            Sincerely,
                                              John Boehner,
                                                          Chairman.

             Section-by-Section Analysis of the Legislation


Section 1. Short title and table of contents

    Section 1 designates the act as the ``Energy Advancement 
and Conservation Act of 2001.''

                      Title I--Energy Conservation


  SUBTITLE A--REAUTHORIZATION OF FEDERAL ENERGY CONSERVATION PROGRAMS

Section 101. Authorization of appropriations

    Section 101 reauthorizes existing Federal energy 
conservation programs administered by the Department of Energy, 
including the Federal Energy Management Program (FEMP) and 
various regulatory programs for energy efficient products, 
appliances, and buildings created under the Energy Policy and 
Conservation Act, the Energy Conservation and Production Act, 
the National Energy Conservation Policy Act, and the Energy 
Policy Act of 1992. The section authorizes to be appropriated 
for such programs $950,000,000 for fiscal year 2002, 
$1,000,000,000 for fiscal year 2003, $1,050,000,000 for fiscal 
year 2004, $1,100,000,000 for fiscal year 2005, and 
$1,150,000,000 for fiscal year 2006.

         SUBTITLE B--FEDERAL LEADERSHIP IN ENERGY CONSERVATION

Section 121. Federal facilities and national energy security

    Section 121 expands the purposes of the Federal energy 
management provisions of the National Energy Conservation 
Policy Act (NECPA) to include promoting the production, supply, 
and marketing of energy efficiency products and services and 
renewable energy sources. The section establishes new mandatory 
efficiency requirements for Federal buildings: 35 percent less 
energy consumption by 2010 and 45 percent by 2020, from a 1985 
baseline. The section also provides that unconventional and 
renewable energy resources should be used to help achieve these 
required increases, and requires the Secretary of Energy to 
issue technical standards and conduct studies to facilitate 
implementation of the requirement. Twenty million dollars in 
funding is authorized for such studies for each fiscal year 
2003 through 2010.
    Under NECPA, Federal buildings are exempt from the energy 
consumption reduction requirements under certain circumstances. 
Section 121 modifies the exemption provisions of NECPA to 
providethat a Federal building may be excluded from such 
requirements if the President declares the building to require 
exclusion for national security reasons and the agency responsible for 
the building has: submitted certain reports; otherwise achieved 
compliance with the energy efficiency requirements under applicable 
Federal laws and executive orders; and implemented all practical, life-
cycle cost-effective projects in the excluded building.
    Section 121 also amends NECPA to establish certain 
additional requirements applicable to acquisition of energy 
using products. Specifically, the section requires agencies to 
select available Energy Star products when acquiring new 
energy-using products. When Energy Star labeled products are 
not available, agencies shall select products that are in the 
upper 25 percent of energy efficiency as designated by FEMP. 
The Secretary of Energy is directed to develop guidelines for 
exemptions where the required products are unavailable, 
impractical, or do not meet agency mission requirements. The 
Administrator of the General Services Administration and the 
Secretary of Defense are directed to include Energy Star 
designations in product catalogues and to replace inventories 
with products that meet the requirements of the section or are 
exempted pursuant to the section.
    Agencies are further directed to incorporate Energy Star-
consistent and other FEMP designated energy efficiency levels 
into specifications for new construction and renovation, and in 
certain ordering, purchasing, and acquisition agreements and 
procedures. The Secretary of Energy is directed to establish 
guidelines for exemptions from such requirements. The 
legislative branch shall be subject to the acquisition 
requirements established under this section. Section 121 also 
requires all Federal buildings, including legislative and 
judicial branch buildings, to be metered in accordance with 
guidelines established by the Secretary of Energy.
    This section further amends NECPA to provide that agencies 
may retain funds appropriated for energy use saved as a result 
of energy savings, but such funds may be used only for energy 
efficiency or unconventional and renewable energy resources 
projects. NECPA is also amended to require agencies to report 
certain information to the Secretary of Energy and to Congress 
regarding its energy management activities. Section 121 also 
amends the Energy Policy Act of 1992 (EPAct) to require that 
the inspector general of each agency conduct a periodic energy 
audit of the agency.
    Section 121 further amends NECPA to require each agency to 
undertake a comprehensive priority response review of all 
practicable measures for increasing energy and water 
conservation and using renewable energy sources. The agency 
shall then implement such practicable measures to achieve at 
least half of the potential efficiency and renewable energy 
savings identified in the review.

Section 122. Enhancement and extension of authority relating to Federal 
        energy savings performance contracts

    Section 122 expands the scope of Energy Savings Performance 
Contracts (ESPCs) to include ``replacement facilities'' (i.e., 
new, more efficient buildings) and water conservation measures. 
The section removes the sunset on ESPC authority, which would 
otherwise expire in 2003.

Section 123. Clarification and enhancement of authority to enter 
        utility incentive programs for energy savings

    Section 123 authorizes an agency, in the course of 
exercising its authority to participate in a utility incentive 
program, to enter into contracts for electricity demand 
management, energy efficiency, or water conservation. The 
provision also expands the scope of such authority to include 
contracts for energy savings from replacement facilities and 
water conservation projects. Federal agencies are encouraged to 
participate in state or regional demand management programs 
operated by regional transmission organizations or other 
entities.

Section 124. Federal central air conditioner and heat pump efficiency

    Section 124 requires that certain air conditioning and heat 
pump units acquired by the Federal government meet or exceed 
certain efficiency standards. This section (1) defines the 
minimum standard for air conditioners with cooling capacities 
of less than 65,000 Btu/hour as a Seasonal Energy Efficiency 
Ratio (SEER) of 12.0, and (2) defines the minimum standard for 
heat pumps with cooling capacities less than 65,000 Btu/hour as 
SEER 12, with a Heating Seasonal PerformanceFactor of 7.4. An 
agency shall be exempt from such requirement upon a finding of 
impracticability based upon certain factors.

Section 125. Federal energy bank

    Section 125 establishes a fund within the Federal 
government to provide low-interest loans to Federal agencies to 
pay for energy efficiency and renewable energy projects. 
Funding is provided in part by annual payments into the bank by 
Federal agencies in an amount equal to 5 percent of each 
agency's utility bill for the preceding fiscal year. Loans are 
limited to projects that meet certain criteria, including a 
project payback period of 10 years or less. The section 
authorizes such sums as may be necessary to implement the 
section for fiscal years 2002 through 2008.

Section 126. Advanced building efficiency testbed

    Section 126 directs the Secretary of Energy to establish a 
development, testing, and demonstration program to enable 
innovations in energy efficient building technologies. The 
program shall be carried out by universities that meet certain 
qualifications.

Section 127. Use of interval data in Federal buildings

    Section 127 requires each executive agency to use interval 
energy consumption data in reducing energy consumption in 
Federal buildings.

Section 128. Review of Energy Savings Performance Contract Program

    Section 128 directs the Secretary of Energy to review the 
Energy Savings Performance Contract program to identify 
statutory, regulatory, and administrative obstacles to Federal 
agency utilization of the program. The review shall identify 
areas for increasing program effectiveness, including auditing, 
measurement and verification, accounting, contracting, and 
energy efficiency services. The Secretary shall report findings 
to the House Committee on Energy and Commerce and the Senate 
Committee on Energy and Natural Resources and shall implement 
administrative and regulatory changes to increase program 
flexibility and effectiveness to the extent consistent with 
existing statutory authority.

Section 129. Capitol Complex

    Section 129 requires the Architect of the Capitol to 
commission a study to evaluate the energy infrastructure of the 
Capital Complex to determine how it could become more energy 
efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility 
services in the event of power fluctuations, shortages, or 
outages. Section 129 authorizes for these purposes $2,000,000.

                       SUBTITLE C--STATE PROGRAMS

Section 131. Amendments to State energy programs

    The Energy Policy and Conservation Act required the 
Secretary of Energy to establish guidelines for Governors to 
submit a state energy conservation feasibility report. The 
report details state efforts to achieve recommended statutory 
goals for energy conservation. Subsection (a) of Section 131 
invites the Governors to revisit their energy conservation 
report at least once every three years, and consider regional 
energy conservation opportunities. Subsection (b) establishes 
new recommended state conservation goals of 25 percent improved 
energy efficiency over 1990 levels by 2010. Subsection (c) 
extends and increases the authorization for Federal assistance 
with state energy conservation programs. Funds are authorized 
in the following amounts: $75,000,000 for fiscal year 2002; 
$100,000,000 for fiscal years 2003 and 2004; and $125,000,000 
for fiscal year 2005.

Section 132. Reauthorization of energy conservation program for schools 
        and hospitals

    The Energy Conservation Program for Schools and Hospitals 
establishes guidelines for states to conduct energy audits of 
schools and hospitals, and provides financial assistance to 
implement energy conservation and efficiency measures based on 
those audits. Section 132 extends the authorization for this 
program through 2010.

Section 133. Amendments to Weatherization Assistance Program

    The Weatherization Assistance Program provides grants to 
improvethe energy efficiency of low-income homes. Section 133 
reauthorizes the program at increased funding levels as follows: 
$250,000,000 for fiscal year 2002; $325,000,000 for fiscal year 2003; 
$400,000,000 for fiscal year 2004; and $500,000,000 for fiscal year 
2005.

Section 134. LIHEAP

    The Low Income Home Energy Assistance Program (LIHEAP) 
assists low-income consumers in paying high energy bills. 
Section 134 reauthorizes the program (established under the Low 
Income Home Energy Assistance Act of 1981) at a funding level 
of $3,400,000,000 for each of fiscal years 2001 through 2005, 
representing a 70 percent increase over total LIHEAP funding 
appropriated for fiscal year 2000.

Section 135. High performance public buildings

    Section 135 establishes within the Department of Energy a 
High Performance Public Buildings Program to make grants to the 
states to assist local governments in constructing and 
renovating buildings to maximize energy efficiency and use of 
renewable energy. Such sums as may be necessary to implement 
the program are authorized for fiscal years 2002 through 2010.

          subtitle d--energy efficiency for consumer products

Section 141. Energy Star program

    The Energy Star Program is a regulatory program previously 
established by administrative actions of the Department of 
Energy and the Environmental Protection Agency to identify and 
promote energy efficient products and buildings. Subsection (a) 
of Section 141 establishes a statutory foundation for continued 
operation of the Energy Star Program and instructs the two 
agencies to further their partnership in promoting and 
designating Energy Star products. Subsection (b) directs the 
Secretary of Energy to determine whether the Energy Star label 
should be extended to cover certain additional products and 
buildings. The section provides that responsibilities under the 
Energy Star Program, including responsibilities for particular 
product categories, shall be allocated consistent with 
agreements between the agencies, such as are currently in place 
but potentially including amendments to such agreements as may 
be necessary or appropriate to carry out the purposes of the 
program.

Section 142. Labeling of energy efficient appliances

    The Energy Policy and Conservation Act requires the Federal 
Trade Commission (FTC) to develop labels with information on 
energy consumption and operating costs for certain consumer 
products. Subsection (a) of Section 142 directs the Secretary 
of Energy to recommend to the FTC additional products for 
labeling, where such labeling is likely to assist consumers in 
making purchasing decisions and is technologically and 
economically feasible. Subsection (b) directs the Commission to 
initiate a rulemaking to label non-covered products if it 
determines that labeling of such products is likely to assist 
consumers in making purchasing decisions and is technologically 
and economically feasible. Subsection (b) also directs the FTC 
to initiate a rulemaking to consider the effectiveness of the 
existing labeling program and to consider changes to the label 
that would improve such effectiveness.

Section 143. Appliance standards

    The Energy Policy and Conservation Act (EPCA) directs the 
Secretary of Energy to establish efficiency standards for 
certain products. Subsection (a) of Section 143 amends EPCA to 
direct the Secretary to establish an efficiency standard for 
standby mode electric energy consumption by certain household 
appliances, with certain exceptions, to take effect 2 years 
from enactment. The standard shall be 1 watt except where the 
product meets certain criteria related to technical 
infeasibility, compatibility with existing energy conservation 
standards, and lack of cost savings compared to increase in 
product price. In the case of analog televisions, a standard 
established by the Secretary of Energy shall apply in lieu of 
the 1 watt standard. In the case of digital televisions, 
digital set top boxes, and digital video recorders, no standard 
is specified and the rulemaking shall commence on January 1, 
2007 and take effect 18 months thereafter.
    Subsection (b) amends EPCA to direct the Secretary to 
conduct a rulemaking to determine whether to establish energy 
conservation standards for non-covered products. If such 
products meet certain criteria, the Secretary shall prescribe a 
standard if such standard isreasonably probable to be 
technologically feasible and economically justified.
    Subsection (c) directs the Secretary of Energy to establish 
an education program to inform the public of the energy savings 
that result from regular maintenance of heating, air 
conditioning and ventilation systems. The Secretary is directed 
to consider supporting public education programs sponsored by 
trade and professional or energy efficiency organizations. Five 
million dollars are authorized to carry out such public 
education programs.
    Subsection (d) amends EPCA to direct the Secretary to 
establish an energy conservation standard for furnace fans, 
central air and heat pump circulation fans, ceilings fans, and 
cold drink vending machines.

                 subtitle e--energy efficient vehicles


Section 151. High occupancy vehicle exception

    Section 151 authorizes States to permit certain hybrid and 
alternative fueled vehicles to operate in high occupancy 
vehicle (HOV) lanes, regardless of the number of passengers. 
The decision as to whether to permit these vehicles to operate 
in HOV lanes is within the discretion of the appropriate state 
authority. This section does not change any current authority 
which states may have to impose restrictions on HOV lane access 
based upon state laws, such as air emissions laws.

Section 152. Railroad efficiency

    Section 152 directs the Secretary of Energy to establish a 
public- private research partnership and a research and test 
center to advance locomotive technologies that increase fuel 
economy and reduce emissions. Funding for these activities are 
authorized as follows: $25,000,000 for fiscal year 2002; 
$30,000,000 for fiscal year 2003; and $35,000,000 for fiscal 
year 2004.

Section 153. Biodiesel fuel use credits

    Section 153 removes a current restriction in the Energy 
Policy Act that prevents credits earned for vehicle fleets 
using biodiesel from being considered a credit under Section 
508 of that Act. Section 153 does not change the existing 
limitation under Section 312(b)(2) of the Energy Policy Act 
that prevents a fleet or covered person from using biodiesel 
credits to satisfy more than 50 percent of the alternative 
fueled vehicle requirements of the Act.

Section 154. Mobile to stationary source trading

    Section 154 directs the Administrator of the Environmental 
Protection Agency to commence a review of the Agency's policies 
regarding the use of mobile to stationary source trading of 
emission credits under the Clean Air Act to determine whether 
such trading can provide additional flexibility in achieving 
and maintaining air quality, and increase the use of 
alternative fuel and advanced technology vehicles.

                      subtitle f--other provisions

Section 161. Review of regulations to eliminate barriers to emerging 
        energy technology

    Section 161 directs each Federal agency to review its 
regulations and standards to identify barriers to market entry 
for emerging energy-efficient technologies. Each agency must 
then report to Congress and the President on such barriers 
identified and actions the agency intends to take to remove 
such barriers. Each agency shall also subsequently conduct a 
similar review and report at least every 5 years.

Section 162. Advanced idle elimination systems

    Section 162 directs the Environmental Protection Agency to 
review mobile source emissions models to ensure they accurately 
reflect the emissions resulting from extended idling of heavy-
duty trucks and other vehicles and to make appropriate changes 
to update such models. Section 162 also directs the Agency to 
commence a review of the appropriate emissions reduction credit 
for use of advanced idle elimination systems and to revise 
associated regulations and guidance as appropriate.

Section 163. Study of benefits and feasibility of oil bypass filtration 
        technology

    Section 163 directs the Secretary of Energy and the 
Administrator of the Environmental Protection Agency to conduct 
a joint study of oil bypass filtration (OBF) technology in 
motor vehicle engines. Section 163 requires that the study 
analyze and quantify the potential benefits of OBF technology 
in terms of reduced demand for oil, and the potential 
environmental benefits of OBF technology in terms of reduced 
waste and air pollution. Section 163 also requires that the 
Secretary and the Administrator examine the feasibility of 
using OBF in the Federal motor vehicle fleet.

Section 164. Gas flare study

    Section 164 directs the Secretary of Energy to conduct a 
study of the economic feasibility of installing small 
cogeneration facilities utilizing excess gas flares at 
petrochemical facilities to provide reduced electricity costs 
to customers living within a certain distance of such 
facilities. The Secretary shall take comments and prepare and 
transmit a report on the results of the study to Congress.

Section 165. Telecommuting study

    Section 165 directs the Secretary of Energy, in 
consultation with the Federal Communications Commission and the 
National Telecommunications and Information Administration (of 
the Department of Commerce) to conduct a study of certain 
energy conservation implications of the widespread adoption of 
telecommuting in the United States, including identification of 
regulatory barriers to telecommuting. The Secretary is directed 
to submit a report on the study to the President and the 
Congress.

                   Title II--Automobile Fuel Economy


Section 201. Average fuel economy standards for non-passenger 
        automobiles

    Section 201 adds a new paragraph to 49 U.S.C. 32902 that 
requires the Secretary of Transportation to set corporate 
average fuel economy (CAFE) standards for light trucks 
manufactured in model years 2004 through 2010 that are 
calculated to ensure that the aggregate amount of gasoline 
projected to be used by such vehicles in those model years is 
at least 5 billion gallons less than the aggregate amount of 
gasoline that would be used by such vehicles in those model 
years under the CAFE standard in place for light trucks in 
model year 2002. As used in this Title, ``non-passenger 
automobiles'' are ``light trucks'' which include sport utility 
vehicles, minivans, vans, and pickup trucks with a gross 
vehicle weight rating of less than 8500 pounds. The mandate in 
this section for the Secretary to increase the fuel economy 
standard for light trucks in order to save an aggregate of at 
least 5 billion gallons of gasoline in model years 2004 through 
2010 is a fuel-savings ``floor,'' not a ``ceiling.'' Nothing in 
this section prevents the Secretary from requiring fuel savings 
in excess of 5 billion gallons. Further, this section makes no 
change to the existing requirement in 49 U.S.C. 32902(a) that, 
at least 18 months before the beginning of each model year, the 
Secretary shall prescribe by regulation ``the maximum feasible 
average fuel economy level that the Secretary decides the 
manufacturers can achieve in that model year'' for light 
trucks. To the extent this section conflicts with this 
requirement, the five billion gallon mandate in this bill shall 
prevail. If a rulemaking directing a fuel economy increase in 
more than one model year is necessary to ensure that the 
required fuel savings are achieved, the Secretary should 
undertake such a rulemaking.

Section 202. Consideration of prescribing different average fuel 
        economy standards for non-passenger automobiles

    Section 202 requires that the Secretary consider the 
potential benefits of establishing a weight-based CAFE system 
for light trucks manufactured in model year 2004, based on 
inertia weight, curb weight, gross vehicle weight rating, or 
other appropriate measure, and of prescribing different fuel 
economy standards for such vehicles that are subject to the 
weight-based system. The Secretary must specifically consider 
the National Academy of Sciences study to be completed pursuant 
to the Department of Transportation Appropriations Act (P.L. 
106-346), and shall evaluate the merits of a weight-based 
system in terms of vehicle safety, energy conservation, 
competitiveness of the automobile industry, and employment in 
the automobile industry. If a weight-based system is 
established by the Secretary for light trucks, then an 
automobile manufacturer may trade credits between and among 
theclasses of light trucks it manufactures.

Section 203. Dual fueled automobiles

    Section 203 extends the sunset date for CAFE credits 
currently available for dual fueled vehicles. Section 203 
extends the maximum 1.2 CAFE credit to model year 2008 and if 
the Secretary, pursuant to existing law and regulation, extends 
the CAFE credit program for an additional four years, the 0.9 
CAFE credit for dual fueled vehicles is extended to 2012.

Section 204. Fuel economy of the Federal fleet of automobiles

    Section 204 replaces the current Federal fleet provisions 
contained in 49 U.S.C. 32917. Section 204 requires that, by 
September 30, 2003, the head of each Federal executive agency 
manage the procurement of vehicles for each agency so that the 
average fuel economy of new vehicles in each executive agency's 
Federal fleet be at least 1 mile per gallon higher than the 
baseline average fuel economy of each executive agency's fleet 
of vehicles that were leased or bought in fiscal year 1999. By 
September 30, 2005, the average fuel economy for each executive 
agency's Federal fleet of vehicles must be at least 3 miles per 
gallon higher than the baseline average fuel economy of the 
Federal fleet of vehicles each executive agency leased or 
bought in fiscal year 1999. This section does not apply to 
vehicles used for combat-related missions, law enforcement 
work, or emergency rescue work.

Section 205. Hybrid vehicles and alternative vehicles

    Section 205 supplements the current requirements in section 
303 of the Energy Policy Act of 1992, which requires 75 percent 
of the new vehicles acquired for a Federal fleet be alternative 
fueled vehicles. Section 205 mandates that of the total number 
of vehicles acquired by a Federal fleet in fiscal years 2004 
and 2005, at least 5 percent of the vehicles, in addition to 
the 75 percent of new vehicle purchases required by existing 
law to be alternative fueled vehicles, be hybrid electric 
vehicles or alternative fueled vehicles. In fiscal year 2006 
and thereafter, the percentage of hybrid electric or 
alternative fueled vehicles increases to 10 percent over and 
above requirements of existing law.

Section 206. Federal fleet petroleum-based nonalternative fuels

    Section 206 adds a new section at the end of Title III of 
the Energy Policy Act of 1992. Section 206 requires that 
Federal fleets of light duty motor vehicles, in the aggregate, 
reduce the purchase of petroleum-based nonalternative fuels 
beginning October 1, 2003, and that by September 30, 2009, 
light duty motor vehicles in Federal fleets use only 
alternative fuels. Within 120 days after the date of enactment 
of this bill, the Secretary, in consultation with the 
Administrator of the General Services Administration and the 
Director of the Office of Management and Budget, along with the 
heads of other executive agencies referenced in section 303, 
shall promulgate standards providing for the full and prompt 
implementation of this requirement. Thereafter, the Secretary 
shall monitor progress made towards achieving the requirements 
of this section and shall report annually to Congress 
concerning compliance. Such sums as are necessary are 
authorized to achieve the purposes of sections 304(b) and 313 
of the Energy Policy Act of 1992.

Section 207. Study of feasibility and effects of reducing use of fuel 
        for automobiles

    Section 207 requires the Secretary of Transportation, 
within 30 days of the date of enactment of this bill, to enter 
into an arrangement with the National Academy of Sciences to 
study the feasibility and effects of reducing, by a significant 
percentage, fuel consumption by automobiles by model year 2010. 
This study must include an examination of, and recommendation 
of alternatives to, the current CAFE program, an examination of 
how automobile makers can contribute toward achieving the 
significant fuel savings, an examination of the potential of 
fuel cell technology in motor vehicles, and how fuel cell 
technology may contribute towards achieving the fuel 
consumption reduction discussed in this section. In addition, 
the study must include an examination of the effects of fuel 
consumption reductions on gasoline supplies, the automobile 
industry, including sales of automobiles manufactured in the 
United States, vehicle safety, and air quality. The report must 
be completed and submitted to the Secretary and to the Congress 
not later than one year after enactment of this bill.

                       Title III--Nuclear Energy


                     SUBTITLE A--GENERAL PROVISIONS

Section 301. Budget status of Nuclear Waste Fund

    Section 301(a) moves the Nuclear Waste Fund off-budget. The 
subsection provides that notwithstanding any other provision of 
law, the receipts and disbursements of the Nuclear Waste Fund 
shall not be counted as new budget authority, outlays, 
receipts, or deficit or surplus for purposes of (1) the budget 
of the United States Government as submitted by the President; 
(2) the Congressional budget; or (3) the Balanced Budget and 
Emergency Deficit Control Act of 1985. This action will protect 
consumers by preventing the diversion of their fees to other 
Federal programs. Section 301(b) prohibits, upon enactment, the 
Director of the Office of Management and Budget from making any 
estimate of the pay-as-you-go effects of subsection 301(a) of 
this section. The requirement to estimate changes in direct 
spending outlays and receipts stems from section 252(d) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
    The Nuclear Waste Policy Act of 1982 established the 
Nuclear Waste Fund with a one mill fee on electricity generated 
and sold by nuclear power plants. The 1982 Act provided that 
these fees were to be used solely for the purpose of the 
nuclear waste program, and included express limitations on use 
of the Fund. Section 302(d) of the 1982 Act provides that ``DOE 
may make expenditures from the Waste Fund * * * only for 
purposes of radioactive waste disposal activities * * *.'' 
Subsection (d) provides a nonexclusive list of some of these 
purposes. Although this list is nonexclusive, it is clear that 
any expenditures from the Nuclear Waste Fund may be made only 
by the Secretary of Energy, and ``only for purposes of 
radioactive waste disposal activities.'' Expenditures of fees 
paid by consumers into the Nuclear Waste Fund for other Federal 
programs would violate the strict limitations in the Nuclear 
Waste Policy Act of 1982, and invite further litigation.
    Moving the Nuclear Waste Fund off-budget restores the 
nuclear waste program to the status Congress intended when it 
enacted the 1982 Act. Section 302(c) of the Act established the 
Nuclear Waste Fund as a separate fund in the Treasury of the 
United States, with dedicated funding sources, the one mill 
fee, the one-time fees on generation and sales preceding April 
7, 1983, and contributions from other Federal agencies that 
dispose of spent fuel and waste in a repository. One reason 
Congress set up the Nuclear Waste Fund as a separate fund with 
dedicated funding sources was to insulate the program from 
competition with other Federal programs for funding. 
Unfortunately, budget laws enacted since the Nuclear Waste 
Policy Act of 1982 have changed the status of the Nuclear Waste 
Fund, forcing the program to compete with other Federal 
programs for funding, despite the fact that the program had 
dedicated revenue sources.
    Since enactment of the Nuclear Waste Policy Act of 1982, 
the Nuclear Waste Fund has accumulated a large balance, 
approximately $9.5 billion at the end of September 2000. This 
is not unexpected. It was anticipated revenues would exceed 
expenditures in the early years of the program, and the balance 
would be used when costs rose sharply during repository 
construction. Unfortunately, because of budget rules it will 
prove difficult to access the balance in the Nuclear Waste Fund 
at a time when revenue requirements are rising.
    Significantly, moving the Nuclear Waste Fund off-budget 
does not result in uncontrolled or unrestricted spending. The 
Secretary may only make expenditures from the Nuclear Waste 
Fund subject to appropriations. Thus, there is no uncontrolled 
or unrestrained spending, and appropriators retain control of 
program expenditures.

Section 302. License period

    Section 302 provides that the initial period of a combined 
construction and operating license for a production or 
utilization facility, as authorized by the Energy Policy Act of 
1992 (P.L. 102-486, 106 Stat. 2776), may not exceed 40 years 
from the date on which the Commission finds that the acceptance 
criteria for such license required under Section 185(b) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2235) have been met. The 
intent of this section is to align the beginning of the 
licensing period with the beginning of the facility's 
operation.

Section 303. Cost recovery from Government agencies

    Section 303 authorizes the Commission to assess and collect 
fees from other Federal agencies in return for services 
rendered by the NRC, rather than recovering these costs through 
the annual fees assessed to allNRC licensees. Existing 
authority in section 161w of the Atomic Energy Act (42 U.S.C. 2235) 
provides for cost recovery only in limited situations. This section 
authorizes full cost recovery for the entire range of services that the 
NRC provides to other Federal agencies. The replacement of section 483a 
with section 9701 is a correction to the proper United State Code 
reference.

Section 304. Depleted uranium hexafluoride

    Section 304 extends spending limitations created in P.L. 
104-205 to ``wall off'' funds for the purposes of implementing 
the final plan to convert depleted uranium hexafluoride at the 
Portsmouth and Paducah Gaseous Diffusion plants from 2002 to 
2005.
    The Committee notes that the schedule for implementing the 
final plan required in P.L. 104-205 has slipped significantly 
and that a contract is not scheduled for award until late in 
calendar year 2001. The Committee urges DOE to consider whether 
compliance with the National Environmental Policy Act can best 
be effectuated through an environmental assessment instead of a 
site specific environmental impact statement, to the extent 
allowed by current regulations.

Section 305. Nuclear Regulatory Commission meetings

    Section 305 is intended to make available to the public, 
upon request, a transcript of discussions involving a quorum of 
NRC Commissioners who gather to discuss official Commission 
business. This provision requires that NRC make a recording of 
such meetings, and provide notice to the public within 15 days 
after such meetings. NRC is required to promptly make a 
transcript available to the public, upon request, to the extent 
that public disclosure of the transcript is not subject to an 
exemption or prohibition under applicable law. A similar 
provision considered and reported by the Committee in H.R. 2531 
in the 106th Congress would have codified the Commission's 1977 
rule implementing the Sunshine Act that required the Commission 
open to the public any meeting of a quorum of the Commissioners 
involving official Commission business. This provision does not 
alter the Commission's new rule, implemented in 1999, which 
allows for certain discussions involving a quorum of 
Commissioners to be conducted outside of the Sunshine Act's 
definition of ``meeting.'' Although this section does not 
impose a specific time limit for response by the Commission, 
the NRC should develop a process for the prompt response to any 
public request for a transcript.

                SUBTITLE B--DOMESTIC URANIUM FUEL CYCLE

Section 311. Portsmouth cold standby

    Section 311 makes available $169 million from the United 
States Enrichment Corporation Fund (USEC Fund) established 
under section 1308 of the Atomic Energy Act of 1954, without 
further appropriations, and at the discretion of the Secretary, 
to maintain the Portsmouth Gaseous Diffusion plant (Portsmouth 
plant) in cold standby, consistent with the hot restart plan 
developed pursuant to Section 314(b), for fiscal years 2002 
through 2005.

Section 312. Paducah funding

    Section 312 makes available $169,000,000 from the USEC 
Fund, without further appropriations, and at the discretion of 
the Secretary, for activities at the Paducah Gaseous Diffusion 
plant (Paducah plant), that do not duplicate the transfer and 
storage operations at the Portsmouth plant, for fiscal years 
2002 through 2005.

Section 313. Research and development

    Section 313 makes available $254,000,000 from the USEC 
fund, without further appropriation, and at the discretion of 
the Secretary, to develop and implement a plan for an advanced 
gas centrifuge technology for uranium enrichment at either the 
Paducah or Portsmouth plants.
    Section 314. Short-term reliability of domestic uranium 
enrichment capacity
    Section 314(a) requires the Secretary to develop draft 
criteria to determine whether the hot restart of the Portsmouth 
plant may be necessary, in order to mitigate against impacts 
associated with disruptions in commercial nuclear fuel supply 
or contract liabilities of the U.S. Government in the event of 
non-performance by USEC, Inc. Section 314(b) requires the 
Secretary to develop a separate plan toeffectuate the hot 
restart of Portsmouth in the event the Secretary were to determine to 
hot restart the Portsmouth plant.

Section 315. Cooperative research and development and special 
        demonstration projects for the uranium by the United States 
        until 2009

    Section 315 authorizes $10,000,000 per year for three years 
beginning in 2002, for cooperative, cost-shared, agreements 
between DOE and domestic uranium producers to develop in situ 
leaching mining technologies, and low cost environmental 
restoration technologies. The funding is also provided for 
competitively selected demonstration projects with domestic 
uranium producers for enhanced production, restoration of well 
fields, and decommissioning and decontamination activities.

Section 316. Maintenance of a viable domestic uranium conversion 
        industry

    Section 316 authorizes $800,000 for the Secretary to 
contract with Converdyn, Inc., the sole domestic uranium 
conversion service provider, for performing research and 
development to improve the environmental and economic 
performance of uranium conversion operations.

Section 317. Prohibition of commercial sales of uranium by the United 
        States until 2009

    Section 317 prohibits DOE from selling or transferring any 
of its uranium inventories, in any form owned by DOE, through 
March 23, 2009, except for emergency supply in the event of a 
disruption in domestic supply and for certain exceptions 
related to current uranium sales or transfer commitments made 
by the Department. Sales after March 23, 2009 are restricted to 
3,000,000 pounds per calendar year.

Section 318. Paducah decontamination and decommissioning plan

    Section 318 requires the Secretary to prepare a plan to 
establish the scope, cost, schedule, sequence of activities, 
and contracting strategy for decontamination and 
decommissioning of surplus facilities and the remediation of 
material storage areas at the Paducah plant. The purpose of the 
plan is to identify and prioritize health and safety risks in 
these areas, and incorporate these factors in a sequence and 
schedule for the plan. The plan also must identify funding 
requirements.

                   Title IV--Hydroelectric Licensing


Section 401. Alternative conditions and fishways

    Section 401 amends Part I of the Federal Power Act (FPA) to 
require that federal resource agencies consider alternatives to 
the mandatory conditions and fishway prescriptions they would 
otherwise impose on hydroelectric power projects during a 
licensing proceeding.
    Section 4(e) of the FPA provides, among other things, that 
licenses issued by the Federal Energy Regulatory Commission 
(FERC) for projects that fall within a reservation are subject 
to and shall contain such conditions as are deemed necessary by 
the Secretary of the Department with jurisdiction over the 
reservation for its protection and utilization. Subsection 
(a)(1) establishes the right of any party to a licensing 
proceeding to propose an alternative to a Secretary's proposed 
condition. Subsection (a)(2) requires the Secretary to adopt an 
alternative if the Secretary determines, based upon substantial 
evidence provided by the party proposing the alternative, that 
the alternative would provide no less protection for the 
reservation than the condition deemed necessary by the 
Secretary and the alternative would either cost less to 
implement or result in improved operation of the project works 
for electricity production. Subsection (a)(3) directs each of 
the relevant Secretaries to establish, within one year from 
enactment, a process within his department for resolving 
disputes arising out of actions taken pursuant to this 
subsection.
    Section 18 of the FPA directs FERC to require a licensee, 
at its own expense, to construct, maintain, and operate such 
fishways as may be prescribed by the relevant Secretary. 
Subsection (b)(1) establishes the right of any party to a 
licensing proceeding to propose an alternative to a 
prescription to construct, maintain, or operate a fishway. 
Subsection (b)(2) requires that the appropriate Secretary 
accept (and FERC subsequently require) an alternative to his 
prescription if the Secretary determines, based upon 
substantial evidence provided by the party proposing the 
alternative, the alternative would be no less effective thanthe 
Secretary's initial fishway prescription and the alternative would 
either cost less to implement or result in improved operation of the 
project works for electricity production. Subsection (b)(3) directs 
each of the relevant Secretaries to establish, within one year from 
enactment, a process within his department for resolving disputes 
arising out of actions taken pursuant to this Subsection.

Section 402. FERC data on hydroelectric licensing

    This section requires the FERC to revise its data 
collection procedures regarding the hydroelectric licensing 
process to provide more complete and accurate information on 
the time and costs involved in the process. In testimony 
received by the Committee, the General Accounting Office (GAO) 
criticized FERC's data collection and management with regard to 
relicensing hydroelectric projects. This section responds to 
the GAO testimony and the Committee directs FERC to reform its 
procedures consistent with the GAO's testimony. Further, the 
Committee intends that the burden for implementing this section 
should fall upon FERC and should not unduly increase the burden 
on licensees to collect and transmit information to FERC. 
Finally, the Committee notes that this provision neither 
constricts nor expands FERC's authorities and responsibilities 
under current law with regard to disclosure of proprietary or 
confidential information.

                          Title V--Clean Coal


Section 501. Short title

    Section 501 provides for the short title of the title as 
the ``National Electricity and Environmental Improvement Act.''

Section 502. Findings

    Section 502 sets forth certain findings concerning clean 
coal technologies.

      Subtitle A--Accelerated Clean Coal Power Production Program

    Subtitle A provides authorization for the Department of 
Energy to develop accelerated programs for the production, 
supply and generation of electrical power by advanced clean 
coal methods and equipment. It also requires DOE to assess the 
use of coal for chemical feedstocks and transportation fuel. 
Under the subtitle, DOE is required to periodically report to 
Congress on methods and equipment that are able to meet cost 
and performance standards and to carry out a program for 
generation of coal-based power that would advance efficiency 
and environmental performance. DOE is further authorized to 
fund projects meeting certain efficiency and environmental 
performance criteria up to a Federal share of 50 percent of the 
cost of the project.

Subtitle B--Credit for Emission Reductions and Efficiency Improvements 
        in Existing Coal-Based Electricity Generation Facilities

    Subtitle B provides tax credits for emission reductions and 
efficiency improvements in existing coal-based generating 
facilities. The subtitle provides a qualifying clean coal 
technology unit credit in an amount equal to 10 percent of the 
qualified investment, up to a limit of $100 million for 
emission control equipment at any one electric generating 
plant. It also establishes a production tax credit for the 
first 10 years of electricity output from existing coal-based 
generating units that are repowered with qualifying systems.

 Subtitle C--Incentives for Early Commercial Applications of Advanced 
                        Clean Coal Technologies

    Subtitle C allows tax credits for electric generation from 
advanced clean coal technology programs. Credit for investment 
under Section 531 is allowed in an amount equal to 10 percent 
of the qualified investment. Credit for production under 
Section 532 is conditioned on the facility design heat rate and 
the year the facility is originally placed in service and is 
available during the first 10 years of operation. In subsequent 
years, the credit is conditioned on improvements in efficiency. 
The subtitle also establishes a risk pool to help defray the 
cost (up to 5 percent of the cost of installation) for any 
modifications necessary to achieve design performance levels 
during the first 3 years of operation.

    Subtitle D--Treatment of Certain Governmental and Other Entities

    Subtitle D creates refundable or offset tax credits for 
electric cooperatives and publicly owned utilities. It also 
establishes an offset against payments required as an annual 
return on appropriations by the Tennessee Valley Authority.

                            Title VI--Fuels


Section 601. Tank draining during transition to summertime RFG

    Section 601 requires the Environmental Protection Agency 
(EPA) to commence a rulemaking regarding the transition to 
high-ozone season reformulated gasoline. EPA must evaluate 
whether the transition to summertime RFG is conducted in a 
manner that minimizes disruptions to the availability and 
affordability of gasoline and maximizes flexibility for 
gasoline storage tanks consistent with the goals of the Clean 
Air Act. If regulatory changes are necessary, EPA must take 
final action and ensure that new regulations are effective and 
implemented at least 60 days before the beginning of the high 
ozone season for next year. EPA may repeal, modify, or take no 
action with respect to such rules consistent with Clean Air Act 
authority.

Section 602. Gasoline blendstock requirements

    Section 602 requires EPA to commence a rulemaking to 
determine whether modifications to the Agency's current 
gasoline blendstock regulations are necessary to facilitate the 
movement of gasoline and gasoline feedstocks among different 
regions throughout the country and to improve the ability of 
petroleum refiners and importers to respond to regional 
gasoline shortages and price increases. EPA is required to 
consider whether subsequent environmental requirements that 
were not in effect at the time these regulations were 
promulgated may have rendered these regulations unnecessary or 
inefficient. If regulatory changes are necessary, EPA must take 
final action and ensure that new regulations are effective and 
implemented at least 60 days before the beginning of the high 
ozone season for next year. EPA may repeal, modify, or take no 
action with respect to such consistent with Clean Air Act 
authority.

Section 603. Boutique fuels

    Section 603 requires EPA and the Department of Energy to 
conduct a joint study of all Federal, state and local fuel 
requirements. This review includes not only the RFG program, 
but the wintertime oxygenated program, diesel fuel and local 
regulations on gasoline volatility. The review will look at the 
price and availability of fuels to the consumer, the effect of 
multiple fuel requirements on the fuel distribution system, the 
effect of multiple fuel requirements on air quality and vehicle 
emissions and the feasibility of developing national or 
regional fuel specifications. Under section 603, EPA and DOE 
are also directed to examine whether new Tier II standards will 
achieve some of the same air quality results as the state RFG 
and state volatility programs. For all section 603 
requirements, EPA and DOE are required to report back to 
Congress in 90 days with recommendations regarding regulatory 
and legislative actions that can be taken to simplify the 
national fuel supply system and reduce costs to the consumer 
while meeting the requirements of the Clean Air Act. These 
recommendations must take into account the necessary lead time 
for refinery and fuel distribution system modifications.

Section 604. Funding for MTBE contamination

    Section 604 authorizes $200,000,000 from the Leaking 
Underground Storage Trust Fund for assessment, corrective 
action, inspection and monitoring activities with respect to 
releases of methyl tertiary butyl ether (MTBE) from underground 
storage tanks.

                      Title VII--Renewable Energy


Section 701. Assessment of renewable energy resources

    Section 701 directs the Secretary of Energy to publish an 
annual assessment by the National Laboratories of all renewable 
energy resources available within the United States. The report 
shall include a detailed inventory of resources and other 
information useful in developing renewable energy resources.

Section 702. Renewable energy production incentive

    Section 702 makes several changes to the Renewable Energy 
Production Incentive (REPI) program established by Section 1212 
of theEnergy Policy Act of 1992. REPI provides for payments of 
1.7 cents per kilowatt-hour to qualifying generators for electricity 
produced from renewable energy sources. Generators are eligible for 
payment during the first 10 years of operation. Under current REPI 
regulations, Tier I technologies (wind, solar, geothermal and closed-
loop biomass) are paid in full and paid first. Tier II technologies 
(typically waste-to-energy technologies) are paid proportionately out 
of the remaining funds. Section 702 eliminates the two-tiered payment 
system, treating all qualifying technologies the same, and expands the 
statutory definition of ``Qualified Renewable Energy Facilities'' to 
include landfill gas technologies. Further, it expands the class of 
eligible payment recipients to include Indian tribal governments. 
Finally, it expands the payments to the next generation of renewable 
energy projects, since the initial 10 year's class of eligible projects 
was due to expire in 2003.

                     Title VIII--Pipeline Integrity


                     subtitle a--pipeline integrity

Section 801. Program for pipeline integrity research, development, and 
        demonstration

    Section 801 directs the Secretary of Transportation, in 
coordination with the Secretary of Energy and in consultation 
with the Federal Energy Regulatory Commission, to develop and 
implement an accelerated cooperative research and development 
program to ensure the integrity of natural gas and hazardous 
liquid pipelines.

Section 802. Pipeline Integrity Technical Advisory Committee

    Section 802 establishes in law a Pipeline Integrity 
Technical Management Council, defines its purposes, and 
provides for appointments to the Council. Subsection (a) 
requires the Secretary of Transportation to arrange with the 
National Academy of Sciences for the establishment and 
management of the Pipeline Integrity Technical Advisory 
Committee and to prepare, along with the Committee, in 
coordination with the Secretary of Energy, and submit to 
Congress a five-year research and development program plan.
    Subsection (b) directs the National Academy of Sciences to 
appoint members to the Pipeline Integrity Technical Advisory 
Committee after consultation with the Secretaries of 
Transportation and Energy. It further provides that the 
Committee's membership shall include at least one member of the 
Federal Energy Regulatory Commission.

Section 803. Authorization of appropriations

    Section 803 authorizes the appropriation of funds in fiscal 
years 2002 through 2006 to carry out the purposes of the 
subtitle. Subsection (a) authorizes the appropriation of 
$3,000,000 annually to the Secretary of Transportation to be 
derived from the collection of pipeline safety user fees. 
Subsection (b) authorizes the appropriation of an additional 
$3,000,000 per year to the Secretary of Transportation from the 
Oil Spill Liability Trust Fund for activities related to 
detection, prevention and mitigation of oil spills. Subsection 
(c) authorizes the Secretary of Energy to expend such sums as 
may be necessary and specifies that the funding be derived from 
general revenues.

                 subtitle b--other pipeline provisions

Section 811. Prohibition on certain pipeline route

    Section 811 will expedite construction of a natural gas 
pipeline from Prudhoe Bay, Alaska, to markets in the United 
States by prohibiting the Federal Energy Regulatory Commission 
(FERC) and other federal agencies from considering further a 
northern alternative to the route designated by the President 
pursuant to the Alaska Natural Gas Transportation Act of 1976 
(ANGTA). By removing from consideration this northern route, 
the Committee expects stakeholders to focus their efforts on 
completing expeditiously the project authorized under ANGTA and 
related legislation.

Section 812. Historic pipelines

    Section 812 amends the Natural Gas Act to provide that a 
natural gas pipelines facility regulated by the Federal Energy 
Regulatory Commission (FERC) is not eligible for inclusion on 
the National Register of Historic Places until the Commission 
has certified the abandonment of the facility pursuant to 
Section 7 of the Act. The language adopted by the Committee 
nullifies the eligibility oftransportation facilities regulated 
by FERC as of the date of enactment, regardless of whether the facility 
previously qualified as eligible for inclusion on the Register.

                   Title IX--Miscellaneous Provisions


Section 901. Waste reduction and use of alternatives

    Section 901 authorizes the Secretary of Energy to make a 
single grant of $275,000 to examine and develop the feasibility 
of burning post-consumer carpet in cement kilns as an 
alternative energy source. Section 901 establishes that the 
purposes of the grant shall include determining: (1) how post 
consumer carpet can be burned without disrupting kiln 
operations; (2) the extent to which overall kiln emissions may 
be reduced; and (3) how this process provides benefits to both 
cement operations and carpet suppliers. Section 901 also 
requires that the grant is to be made to a research-intensive 
institution of higher learning with demonstrated expertise in 
the fields of fiber recycling and logistical modeling of carpet 
waste collection and preparation.

Section 902. Annual report on United States energy independence

    Section 902 of the bill directs the Secretary of Energy, in 
consultation with the heads of other relevant Federal agencies, 
to include in each biannual report, required under section 801 
of the Department of Energy Organization Act, an evaluation of 
the progress of the United States has made towards a goal of 
not more than 50 percent dependence on foreign oil sources by 
2010. The evaluation must identify legislative and 
administrative actions needed to implement the goal, as well as 
certain information on options for meeting the goal, including 
greater use of renewable energy, increased conservation, and 
increased domestic production and use of oil, natural gas, 
nuclear, and coal.

Section 903. Study of aircraft emissions

    Section 903 directs the Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of 
Transportation, to commence a study to investigate the impact 
of aircraft emissions at all airports located within areas that 
are in nonattainment for the national ambient air quality 
standard for ozone. Such areas include large metropolitan 
areas, including New York City. Section 903 requires that, 
within 180 days after enactment of the section, the 
Administrator shall submit a report to the Committee on Energy 
and Commerce and the Senate Committee on Energy and Natural 
Resources containing the results of the study and 
recommendations with respect to a plan to maintain 
comprehensive data on aircraft emissions and methods by which 
such emissions may be reduced in order to assist in the 
attainment of the national air quality standard for ozone.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

ATOMIC ENERGY ACT OF 1954

           *       *       *       *       *       *       *



TITLE I--ATOMIC ENERGY

           *       *       *       *       *       *       *


CHAPTER 10. ATOMIC ENERGY LICENSES

           *       *       *       *       *       *       *


  Sec. 103. Commercial Licenses.--
  a. * * *

           *       *       *       *       *       *       *

  [c. Each such] c. License Period.--
          (1) In general.--Each such license shall be issued 
        for a specified period, as determined by the 
        Commission, depending on the type of activity to be 
        licensed, but not exceeding forty years, and may be 
        renewed upon the expiration of such period.
          (2) Combined licenses.--In the case of a combined 
        construction and operating license issued under section 
        185 b., the initial duration of the license may not 
        exceed 40 years from the date on which the Commission 
        finds, before operation of the facility, that the 
        acceptance criteria required by section 185 b. are met.

           *       *       *       *       *       *       *


                     CHAPTER 14. GENERAL AUTHORITY

  Sec. 161. General Provisions.--In the performance of its 
functions the Commission is authorized to--
          a. * * *

           *       *       *       *       *       *       *

          w. prescribe and collect from any other Government 
        agency, which applies [for or is issued a license for a 
        utilization facility designed to produce electrical or 
        heat energy pursuant to section 103 or 104 b., or which 
        operates any facility regulated or certified under 
        section 1701 or 1702] to the Commission for, or is 
        issued by the Commission, a license or certificate, any 
        fee, charge, or price which it may require, in 
        accordance with the provisions of section [483a] 9701 
        of title 31 of the United States Code or any other 
        law[, of applicants for, or holders of, such licenses 
        or certificates].

           *       *       *       *       *       *       *

                              ----------                              


                          ACT OF JULY 21, 1998

                          (Public Law 105-204)

AN ACT To require the Secretary of Energy to submit to Congress a plan 
 to ensure that all amounts accrued on the books of the United States 
    Enrichment Corporation for the disposition of depleted uranium 
    hexafluoride will be used to treat and recycle depleted uranium 
                             hexafluoride.

SECTION 1. UNITED STATES ENRICHMENT CORPORATION.

  (a) * * *
  (b) Limitation.--Notwithstanding the privatization of the 
United States Enrichment Corporation and notwithstanding any 
other provision of law (including the repeal of chapters 22 
through 26 of the Atomic Energy Act of 1954 (42 U.S.C. 2297 et 
seq.) made by section 3116(a)(1) of the United States 
Enrichment Corporation Privatization Act (104 Stat. 1321-349), 
no amounts described in subsection (a) shall be withdrawn from 
the United States Enrichment Corporation Fund established by 
section 1308 of the Atomic Energy Act of 1954 (42 U.S.C. 2297b-
7) or the Working Capital Account established under section 
1316 of the Atomic Energy Act of 1954 (42 U.S.C. 2297b-15) 
until the date that is 1 year after the date on which the 
President submits to Congress the budget request for fiscal 
year [2002] 2005.

           *       *       *       *       *       *       *

                              ----------                              


               SECTION 3112 OF THE USEC PRIVATIZATION ACT

SEC. 3112. URANIUM TRANSFERS AND SALES.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Prohibition on Sales.--Notwithstanding any other 
provision of law, the United States Government shall not sell 
or transfer any uranium (including natural uranium 
concentrates, natural uranium hexafluoride, enriched uranium, 
depleted uranium, or uranium in any other form) through March 
23, 2009 (except sales or transfers for use by the Tennessee 
Valley Authority in relation to the Department of Energy's HEU 
or Tritium programs, or the Department or Energy research 
reactor sales program, or any depleted uranium hexaflouride to 
be transferred to a designated Department of Energy contractor 
in conjunction with the planned construction of the Depleted 
Uranium Hexaflouride conversion plants in Portsmouth, Ohio, and 
Paducah, Kentucky, or for emergency purposes in the event of a 
disruption in supply to end users in the United States). The 
aggregate of sales or transfers of uranium by the United States 
Government after March 23, 2009, shall not exceed 3,000,000 
pounds U3O8 per calendar year.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL POWER ACT

           *       *       *       *       *       *       *


  Sec. 4. The Commission is hereby authorized and empowered--
  (a) * * *

           *       *       *       *       *       *       *

  (h)(1) Whenever any person applies for a license for any 
project works within any reservation of the United States, and 
the Secretary of the department under whose supervision such 
reservation falls deems a condition to such license to be 
necessary under the first proviso of subsection (e), the 
license applicant or any other party to the licensing 
proceeding may propose an alternative condition.
  (2) Notwithstanding the first proviso of subsection (e), the 
Secretary of the department under whose supervision the 
reservation falls shall accept the proposed alternative 
condition referred to in paragraph (1), and the Commission 
shall include in the license such alternative condition, if the 
Secretary of the appropriate department determines, based on 
substantial evidence provided by the party proposing such 
alternative condition, that the alternative condition--
          (A) provides no less protection for the reservation 
        than provided by the condition deemed necessary by the 
        Secretary; and
          (B) will either--
                  (i) cost less to implement, or
                  (ii) result in improved operation of the 
                project works for electricity production
        as compared to the condition deemed necessary by the 
        Secretary.
  (3) Within one year after the enactment of this subsection, 
each Secretary concerned shall, by rule, establish a process to 
expeditiously resolve conflicts arising under this subsection.

           *       *       *       *       *       *       *

  Sec. 18. (a) The Commission shall require the construction, 
maintenance, and operation by a licensee at its own expense of 
such lights and signals as may be directed by the Secretary of 
the Department in which the Coast Guard is operating, and such 
fishways as may be prescribed by the Secretary of Commerce. The 
operation of any navigation facilities which may be constructed 
as a part of or in connection with any dam or diversion 
structure built under the provisions of this Act, whether at 
the expense of a licensee hereunder or of the United States, 
shall at all times be controlled by such reasonable rules and 
regulations in the interest of navigation, including the 
control of the level of the pool caused by such dam or 
diversion structure as may be made from time to time by the 
Secretary of the Army, and for willful failure to comply with 
any such rule or regulation such licensee shall be deemed 
guilty of a misdemeanor, and upon conviction thereof shall be 
punished as provided in section 316 hereof.
  (b)(1) Whenever the Commission shall require a licensee to 
construct, maintain, or operate a fishway prescribed by the 
Secretary of the Interior or the Secretary of Commerce under 
this section, the licensee or any other party to the proceeding 
may propose an alternative to such prescription to construct, 
maintain, or operate a fishway.
  (2) Notwithstanding subsection (a), the Secretary of the 
Interior or the Secretary of Commerce, as appropriate, shall 
accept and prescribe, and the Commission shall require, the 
proposed alternative referred to in paragraph (1), if the 
Secretary of the appropriate department determines, based on 
substantial evidence provided by the party proposing such 
alternative, that the alternative--
          (A) will be no less effective than the fishway 
        initially prescribed by the Secretary, and
          (B) will either--
                  (i) cost less to implement, or
                  (ii) result in improved operation of the 
                project works for electricity production
        as compared to the fishway initially prescribed by the 
        Secretary.
  (3) Within one year after the enactment of this subsection, 
the Secretary of the Interior and the Secretary of Commerce 
shall each, by rule, establish a process to expeditiously 
resolve conflicts arising under this subsection.

           *       *       *       *       *       *       *

                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

Subtitle A--Income Taxes

           *       *       *       *       *       *       *


CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *


Subchapter A--Determination of Tax Liability

           *       *       *       *       *       *       *


PART IV--CREDITS AGAINST TAX

           *       *       *       *       *       *       *


                  Subpart D--Business Related Credits

        Sec. 38.  General business credit.
     * * * * * * *
        Sec. 45G.  Credit for production from a qualifying clean coal 
                  technology unit.
        Sec. 45H.  Credit for production from qualifying advanced clean 
                  coal technology.
     * * * * * * *

SEC. 38. GENERAL BUSINESS CREDIT.

  (a) * * *
  (b) Current Year Business Credit.--For purposes of this 
subpart, the amount of the current year business credit is the 
sum of the following credits determined for the taxable year:
          (1) * * *

           *       *       *       *       *       *       *

          (14) in the case of an eligible employer (as defined 
        in section 45E(c)), the small employer pension plan 
        startup cost credit determined under section 45E(a), 
        [plus]
          (15) the employer-provided child care credit 
        determined under section 45F[.],
          (16) the qualifying clean coal technology production 
        credit determined under section 45G(a), plus
          (17) the qualifying advanced clean coal technology 
        production credit determined under section 45H(a).

           *       *       *       *       *       *       *


SEC. 39. CARRYBACK AND CARRYFORWARD OF UNUSED CREDITS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Transitional Rules.--
          (1) * * *

           *       *       *       *       *       *       *

          (11) No carryback of section 48a credit before 
        effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to 
        the qualifying clean coal technology unit credit 
        determined under section 48A may be carried back to a 
        taxable year ending before the date of enactment of 
        section 48A.
          (12) No carryback of section 45g credit before 
        effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to 
        the qualifying clean coal technology production credit 
        determined under section 45G may be carried back to a 
        taxable year ending before the date of enactment of 
        section 45G.
          (13) No carryback of section 48b credit before 
        effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to 
        the qualifying advanced clean coal technology facility 
        credit determined under section 48B may be carried back 
        to a taxable year ending before the date of enactment 
        of section 48B.
          (14) No carryback of section 45h credit before 
        effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to 
        the qualifying advanced clean coal technology 
        production credit determined under section 45H may be 
        carried back to a taxable year ending before the date 
        of enactment of section 45H.

           *       *       *       *       *       *       *


SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY 
                    UNIT.

  (a) General Rule.--For purposes of section 38, the qualifying 
clean coal technology production credit of any taxpayer for any 
taxable year is equal to the product of--
          (1) the applicable amount of clean coal technology 
        production credit, multiplied by
          (2) the kilowatt hours of electricity produced by the 
        taxpayer during such taxable year at a qualifying clean 
        coal technology unit during the 10-year period 
        beginning on the date the unit was returned to service 
        after retrofit, repowering, or replacement.
  (b) Applicable Amount.--
          (1) In general.--For purposes of this section, the 
        applicable amount of clean coal technology production 
        credit is equal to $0.0034.
          (2) Inflation adjustment factor.--For calendar years 
        after 2001, the applicable amount of clean coal 
        technology production credit shall be adjusted by 
        multiplying such amount by the inflation adjustment 
        factor for the calendar year in which the amount is 
        applied. If any amount as increased under the preceding 
        sentence is not a multiple of 0.01 cent, such amount 
        shall be rounded to the nearest multiple of 0.01 cent.
  (c) Definitions and Special Rules.--For purposes of this 
section--
          (1) Qualifying clean coal technology unit.--The term 
        ``qualifying clean coal technology unit'' means a unit 
        of the taxpayer which--
                  (A) is an existing coal-based electricity 
                generating steam generator-turbine unit,
                  (B) has a nameplate capacity rating of not 
                more than 300,000 kilowatts, and
                  (C) has been retrofitted, repowered, or 
                replaced with a clean coal technology within 10 
                years after the effective date of this section.
          (2) Clean coal technology.--The term ``clean coal 
        technology'' means technology which--
                  (A) uses coal to produce 50 percent or more 
                of its thermal output as electricity, including 
                advanced pulverized coal or atmospheric 
                fluidized bed combustion, pressurized fluidized 
                bed combustion, integrated gasification 
                combined cycle, or any other technology for the 
                production of electricity,
                  (B) has a design heat rate not less than 500 
                Btu/kWh below that of the existing unit before 
                it is retrofit, repowered, or replaced with the 
                qualifying clean coal technology,
                  (C) has a maximum design heat rate of not 
                more than 9,500 Btu/kWh when the design coal 
                has a heat content of more than 9,000 Btu per 
                pound,
                  (D) has a maximum design heat rate of not 
                more than 10,500 Btu/kWh when the design coal 
                has a heat content of 9,000 Btu per pound or 
                less, and
                  (E) reduces the discharge into the atmosphere 
                of 1 or more of the following pollutants to not 
                more than--
                          (i) 5 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of 1.2 lb/million btu of heat 
                        input or greater,
                          (ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of less than 1.2 lb/million 
                        Btu of heat input,
                          (iii) nitrogen oxide emissions of 0.1 
                        lb per million Btu of heat input from 
                        other than cyclone-fired boilers,
                          (iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-
                        fired boilers,
                          (v) particulate emissions of 0.02 lb 
                        per million Btu of heat input, and
                          (vi) the emission levels specified in 
                        the new source performance standards of 
                        the Clean Air Act (42 U.S.C. 7411) in 
                        effect at the time of construction, 
                        installation or retrofitting of the 
                        qualifying clean coal technology unit 
                        for the category of source if such 
                        level is lower than the levels 
                        specified in clause (i), (ii), (iii), 
                        (iv), or (v).
          (3) Application of certain rules.--The rules of 
        paragraphs (3), (4), and (5) of section 45 shall apply.
          (4) Inflation adjustment factor.--The term 
        ``inflation adjustment factor'' means, with respect to 
        a calendar year, a fraction the numerator of which is 
        the GDP implicit price deflator for the preceding 
        calendar year and the denominator of which is the GDP 
        implicit price deflator for the calendar year 2001.
          (5) GDP implicit price deflator.--The term ``GDP 
        implicit price deflator'' means the most recent 
        revision of the implicit price deflator for the gross 
        domestic product as computed by the Department of 
        Commerce before March 15 of the calendar year.
  (d) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the qualifying 
clean coal technology unit credit under section 48A is allowed 
unless the taxpayer elects to waive the application of such 
credit to such property.

SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL 
                    TECHNOLOGY.

  (a) General Rule.--For purposes of section 38, the qualifying 
advanced clean coal technology production credit of any 
taxpayer for any taxable year is equal to--
          (1) the applicable amount of advanced clean coal 
        technology production credit, multiplied by
          (2) the sum of--
                  (A) the kilowatt hours of electricity, plus
                  (B) each 3,413 Btu of fuels or chemicals,
        produced by the taxpayer during such taxable year at a 
        qualifying advanced clean coal technology facility 
        during the 10-year period beginning on the date the 
        facility was originally placed in service.
  (b) Applicable Amount.--For purposes of this section, the 
applicable amount of advanced clean coal technology production 
credit with respect to production from a qualifying advanced 
clean coal technology facility shall be determined as follows:
          (1) Where the design coal has a heat content of more 
        than 9,000 Btu per pound:
                  (A) In the case of a facility originally 
                placed in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 8,400.........         $.0060                $.0038
More than 8,400 but not more         $.0025                $.0010
 than 8,550.
More than 8,550 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                  (B) In the case of a facility originally 
                placed in service after 2008 and before 2013, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 7,770.........         $.0105                $.0090
More than 7,770 but not more         $.0085                $.0068
 than 8,125.
More than 8,125 but not more         $.0075                $.0055.
 than 8,350.
------------------------------------------------------------------------

                  (C) In the case of a facility originally 
                placed in service after 2012 and before 2017, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 7,380.........         $.0140                 $.01
More than 7,380 but not more         $.0120                $.0090.
 than 7,720.
------------------------------------------------------------------------

          (2) Where the design coal has a heat content of not 
        more than 9,000 Btu per pound:
                  (A) In the case of a facility originally 
                placed in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 8,500.........         $.0060                $.0038
More than 8,500 but not more         $.0025                $.0010
 than 8,650.
More than 8,650 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                  (B) In the case of a facility originally 
                placed in service after 2008 and before 2013, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 8,000.........         $.0105                 $.009
More than 8,000 but not more         $.0085                $.0068
 than 8,250.
More than 8,250 but not more         $.0075                $.0055.
 than 8,400.
------------------------------------------------------------------------

                  (C) In the case of a facility originally 
                placed in service after 2012 and before 2017, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal   For 1st 5 years of     For 2d 5 years of
             to:                  such service          such service
------------------------------------------------------------------------
Not more than 7,800.........         $.0140                $.0115
More than 7,800 but not more         $.0120                $.0090.
 than 7,950.
------------------------------------------------------------------------

          (3) Where the clean coal technology facility is 
        producing fuel or chemicals:
                  (A) In the case of a facility originally 
                placed in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
   The facility design net   -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 40.6 percent..         $.0060                $.0038
Less than 40.6 but not less          $.0025                $.0010
 than 40 percent.
Less than 40 but not less            $.0010                $.0010.
 than 39 percent.
------------------------------------------------------------------------

                  (B) In the case of a facility originally 
                placed in service after 2008 and before 2013, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
   The facility design net   -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 43.9 percent..         $.0105                 $.009
Less than 43.9 but not less          $.0085                $.0068
 than 42 percent.
Less than 42 but not less            $.0075                $.0055.
 than 40.9 percent.
------------------------------------------------------------------------

                  (C) In the case of a facility originally 
                placed in service after 2012 and before 2017, 
                if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
   The facility design net   -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 44.2 percent..         $.0140                $.0115
Less than 44.2 but not less          $.0120                $.0090.
 than 43.6 percent.
------------------------------------------------------------------------

  (c) Inflation Adjustment Factor.--For calendar years after 
2001, each amount in paragraphs (1), (2), and (3) shall be 
adjusted by multiplying such amount by the inflation adjustment 
factor for the calendar year in which the amount is applied. If 
any amount as increased under the preceding sentence is not a 
multiple of 0.01 cent, such amount shall be rounded to the 
nearest multiple of 0.01 cent.
  (d) Definitions and Special Rules.--For purposes of this 
section--
          (1) In general.--Any term used in this section which 
        is also used in section 48B shall have the meaning 
        given such term in section 48B.
          (2) Applicable rules.--The rules of paragraphs (3), 
        (4), and (5) of section 45 shall apply.
          (3) Inflation adjustment factor.--The term 
        ``inflation adjustment factor'' means, with respect to 
        a calendar year, a fraction the numerator of which is 
        the GDP implicit price deflator for the preceding 
        calendar year and the denominator of which is the GDP 
        implicit price deflator for the calendar year 2001.
          (4) GDP implicit price deflator.--The term ``GDP 
        implicit price deflator'' means the most recent 
        revision of the implicit price deflator for the gross 
        domestic product as computed by the Department of 
        Commerce before March 15 of the calendar year.

           *       *       *       *       *       *       *


         Subpart E--Rules for Computing Work Investment Credit

        Sec. 46.  Amount of credit.
     * * * * * * *
        Sec. 48A.  Qualifying clean coal technology unit credit.
        Sec. 48B.  Qualifying advanced clean coal technology facility 
                  credit.

           *       *       *       *       *       *       *


SEC. 46. AMOUNT OF CREDIT.

  For purposes of section 38, the amount of the investment 
credit determined under this section for any taxable year shall 
be the sum of--
          (1) the rehabilitation credit,
          (2) the energy credit, [and]
          (3)the reforestation credit[.],
          (4) the qualifying clean coal technology unit credit, 
        and
          (5) the qualifying advanced clean coal technology 
        facility credit.

           *       *       *       *       *       *       *


SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT.

  (a) In General.--For purposes of section 46, the qualifying 
clean coal technology unit credit for any taxable year is an 
amount equal to 10 percent of the qualified investment in a 
qualifying system of continuous emission control for such 
taxable year.
  (b) Qualifying System of Continuous Emission Control.--
          (1) In general.--For purposes of subsection (a), the 
        term ``qualifying system of continuous emission 
        control'' means a system of the taxpayer which--
                  (A) serves, is added to, or retrofits an 
                existing coal-based electricity generation 
                unit, the construction, installation, or 
                retrofitting of which is completed by the 
                taxpayer (but only with respect to that portion 
                of the basis which is properly attributable to 
                such construction, installation, or 
                retrofitting),
                  (B) reduces the discharge into the atmosphere 
                of 1 or more of the following pollutants to not 
                more than--
                          (i) 5 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of 1.2 lb/million btu of heat 
                        input or greater,
                          (ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of less than 1.2 lb/million 
                        Btu of heat input,
                          (iii) nitrogen oxide emissions of 0.l 
                        lb per million Btu of heat input from 
                        other than cyclone-fired boilers,
                          (iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-
                        fired boilers,
                          (v) particulate emission of 0.02 lb 
                        per million Btu of heat input, and
                          (vi) the emission levels specified in 
                        the new source performance standards of 
                        the Clean Air Act (42 U.S.C. 7411) in 
                        force at the time of construction, 
                        installation or retrofitting of the 
                        qualifying system of continuous 
                        emission control for the category of 
                        source if such level is lower than the 
                        levels specified in clause (i), (ii), 
                        (iii), (iv), or (v),
                  (C) is depreciable under section 167,
                  (D) has a useful life of not less than 4 
                years, and
                  (E) is located in the United States.
          (2) Special rule for sale-leasebacks.--For purposes 
        of subparagraph (A) of paragraph (1), in the case of a 
        unit which--
                  (A) is originally placed in service by a 
                person, and
                  (B) is sold and leased back by such person, 
                or is leased to such person, within 3 months 
                after the date such unit was originally placed 
                in service, for a period of not less than 12 
                years,
        such unit shall be treated as originally placed in 
        service not earlier than the date on which such 
        property is used under the leaseback (or lease) 
        referred to in subparagraph (B). The preceding sentence 
        shall not apply to any property if the lessee and 
        lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked 
        only with the consent of the Secretary.
  (c) Existing Coal-Based Electricity Generation Unit.--For 
purposes of subsection (a), the term ``existing coal-based 
electricity generating unit'' means, with respect to any 
taxable year, a steam generator-turbine unit which uses coal to 
produce 75 percent or more of its output as electricity and was 
operated commercially before the effective date of this 
section.
  (d) Limit on Qualifying Clean Coal Technology Unit Credit.--
For purposes of subsection (a), the credit shall be applicable 
to not more than the first $100,000,000 of qualifying 
investment in a qualifying system of continuous emission 
control at any 1 existing coal-based electricity generating 
unit.
  (e) Qualified Investment.--For purposes of subsection (a), 
the term ``qualified investment'' means, with respect to any 
taxable year, the basis of a qualifying system of continuous 
emission control placed in service by the taxpayer during such 
taxable year.
  (f) Qualified Progress Expenditures.--
          (1) Increase in qualified investment.--In the case of 
        a taxpayer who has made an election under paragraph 
        (5), the amount of the qualified investment of such 
        taxpayer for the taxable year (determined under 
        subsection (e) without regard to this subsection) shall 
        be increased by an amount equal to the aggregate of 
        each qualified progress expenditure for the taxable 
        year with respect to progress expenditure property.
          (2) Progress expenditure property defined.--For 
        purposes of this subsection, the term ``progress 
        expenditure property'' means any property being 
        constructed by or for the taxpayer and which it is 
        reasonable to believe will qualify as a qualifying 
        system of continuous emission control which is being 
        constructed by or for the taxpayer when it is placed in 
        service.
          (3) Qualified progress expenditures defined.--For 
        purposes of this subsection--
                  (A) Self-constructed property.--In the case 
                of any self-constructed property, the term 
                ``qualified progress expenditures'' means the 
                amount which, for purposes of this subpart, is 
                properly chargeable (during such taxable year) 
                to capital account with respect to such 
                property.
                  (B) Nonself-constructed property.--In the 
                case of nonself-constructed property, the term 
                ``qualified progress expenditures'' means the 
                amount paid during the taxable year to another 
                person for the construction of such property.
          (4) Other definitions.--For purposes of this 
        subsection--
                  (A) Self-constructed property.--The term 
                ``self-constructed property'' means property 
                for which it is reasonable to believe that more 
                than half of the construction expenditures will 
                be made directly by the taxpayer.
                  (B) Nonself-constructed property.--The term 
                ``nonself-constructed property'' means property 
                which is not self-constructed property.
                  (C) Construction, etc.--The term 
                ``construction'' includes reconstruction and 
                erection, and the term ``constructed'' includes 
                reconstructed and erected.
                  (D) Only construction of qualifying system of 
                continuous emission control to be taken into 
                account.--Construction shall be taken into 
                account only if, for purposes of this subpart, 
                expenditures therefor are properly chargeable 
                to capital account with respect to the 
                property.
          (5) Election.--An election under this subsection may 
        be made at such time and in such manner as the 
        Secretary may by regulations prescribe. Such an 
        election shall apply to the taxable year for which made 
        and to all subsequent taxable years. Such an election, 
        once made, may not be revoked except with the consent 
        of the Secretary.
  (g) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the rehabilitation 
credit under section 47 or the energy credit under section 48 
is allowed unless the taxpayer elects to waive the application 
of such credit to such property.
  (h) Termination.--This section shall not apply with respect 
to any qualified investment made more than 10 years after the 
effective date of this section.

SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.

  (a) In General.--For purposes of section 46, the qualifying 
advanced clean coal technology facility credit for any taxable 
year is an amount equal to 10 percent of the qualified 
investment in a qualifying advanced clean coal technology 
facility for such taxable year.
  (b) Qualifying Advanced Clean Coal Technology Facility.--
          (1) In general.--For purposes of subsection (a), the 
        term ``qualifying advanced clean coal technology 
        facility'' means a facility of the taxpayer which--
                  (A)(i)(I) original use of which commences 
                with the taxpayer, or
                  (II) is a retrofitted or repowered 
                conventional technology facility, the 
                retrofitting or repowering of which is 
                completed by the taxpayer (but only with 
                respect to that portion of the basis which is 
                properly attributable to such retrofitting or 
                repowering), or
                  (ii) is acquired through purchase (as defined 
                by section 179(d)(2)),
                  (B) is depreciable under section 167,
                  (C) has a useful life of not less than 4 
                years,
                  (D) is located in the United States, and
                  (E) uses qualifying advanced clean coal 
                technology.
          (2) Special rule for sale-leasebacks.--For purposes 
        of subparagraph (A) of paragraph (1), in the case of a 
        facility which--
                  (A) is originally placed in service by a 
                person, and
                  (B) is sold and leased back by such person, 
                or is leased to such person, within 3 months 
                after the date such facility was originally 
                placed in service, for a period of not less 
                than 12 years,
        such facility shall be treated as originally placed in 
        service not earlier than the date on which such 
        property is used under the leaseback (or lease) 
        referred to in subparagraph (B). The preceding sentence 
        shall not apply to any property if the lessee and 
        lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked 
        only with the consent of the Secretary.
  (c) Qualifying Advanced Clean Coal Technology.--For purposes 
of paragraph (1)--
          (1) In general.--The term ``qualifying advanced clean 
        coal technology'' means, with respect to clean coal 
        technology--
                  (A) which has--
                          (i) multiple applications, with a 
                        combined capacity of not more than 
                        5,000 megawatts (4,000 megawatts before 
                        2009), of advanced pulverized coal or 
                        atmospheric fluidized bed combustion 
                        technology--
                                  (I) installed as a new, 
                                retrofit, or repowering 
                                application,
                                  (II) operated between 2000 
                                and 2012, and
                                  (III) having a design net 
                                heat rate of not more than 
                                9,500 Btu per kilowatt hour 
                                when the design coal has a heat 
                                content of more than 9,000 Btu 
                                per pound, or a design net heat 
                                rate of not more than 9,900 Btu 
                                per kilowatt hour when the 
                                design coal has a heat content 
                                of 9,000 Btu per pound or less,
                          (ii) multiple applications, with a 
                        combined capacity of not more than 
                        1,000 megawatts (500 megawatts before 
                        2009 and 750 megawatts before 2013), of 
                        pressurized fluidized bed combustion 
                        technology--
                                  (I) installed as a new, 
                                retrofit, or repowering 
                                application,
                                  (II) operated between 2000 
                                and 2016, and
                                  (III) having a design net 
                                heat rate of not more than 
                                8,400 Btu per kilowatt hour 
                                when the design coal has a heat 
                                content of more than 9,000 Btu 
                                per pound, or a design net heat 
                                rate of not more than 9,900 
                                Btu's per kilowatt hour when 
                                the design coal has a heat 
                                content of 9,000 Btu per pound 
                                or less, and
                          (iii) multiple applications, with a 
                        combined capacity of not more than 
                        2,000 megawatts (1,000 megawatts before 
                        2009 and 1,500 megawatts before 2013), 
                        of integrated gasification combined 
                        cycle technology, with or without fuel 
                        or chemical co-production--
                                  (I) installed as a new, 
                                retrofit, or repowering 
                                application,
                                  (II) operated between 2000 
                                and 2016,
                                  (III) having a design net 
                                heat rate of not more than 
                                8,550 Btu per kilowatt hour 
                                when the design coal has a heat 
                                content of more than 9,000 Btu 
                                per pound, or a design net heat 
                                rate of not more than 9,900 Btu 
                                per kilowatt hour when the 
                                design coal has a heat content 
                                of 9,000 Btu per pound or less, 
                                and
                                  (IV) having a net thermal 
                                efficiency on any fuel or 
                                chemical co-production of not 
                                less than 39 percent (higher 
                                heating value), or
                          (iv) multiple applications, with a 
                        combined capacity of not more than 
                        2,000 megawatts (1,000 megawatts before 
                        2009 and 1,500 megawatts before 2013) 
                        of technology for the production of 
                        electricity--
                                  (I) installed as a new, 
                                retrofit, or repowering 
                                application,
                                  (II) operated between 2000 
                                and 2016, and
                                  (III) having a carbon 
                                emission rate which is not more 
                                than 85 percent of conventional 
                                technology, and
                  (B) which reduces the discharge into the 
                atmosphere of 1 or more of the following 
                pollutants to not more than--
                          (i) 5 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of 1.2 lb/million btu of heat 
                        input or greater,
                          (ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur 
                        emission of less than 1.2 lb/million 
                        Btu of heat input,
                          (iii) nitrogen oxide emissions of 0.1 
                        lb per million Btu of heat input from 
                        other than cyclone-fired boilers,
                          (iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-
                        fired boilers,
                          (v) particulate emissions of 0.02 lb 
                        per million Btu of heat input, and
                          (vi) the emission levels specified in 
                        the new source performance standards of 
                        the Clean Air Act (42 U.S.C. 7411) in 
                        effect at the time of retrofitting, 
                        repowering, or replacement of the 
                        qualifying clean coal technology unit 
                        for the category of source if such 
                        level is lower than the levels 
                        specified in clause (i), (ii), (iii), 
                        (iv), or (v).
          (2) Exceptions.--Such term shall not include any 
        projects receiving or scheduled to receive funding 
        under the Clean Coal Technology Program, or the Power 
        Plant Improvement administered by the Secretary of the 
        Department of Energy or a Qualifying Clean Coal 
        Technology Unit as defined in section 45G(c)(1).
  (d) Clean Coal Technology.--The term ``clean coal 
technology'' means advanced technology which uses coal to 
produce 75 percent or more of its thermal output as electricity 
including advanced pulverized coal or atmospheric fluidized bed 
combustion, pressurized fluidized bed combustion, integrated 
gasification combined cycle with or without fuel or chemical 
co-production, and any other technology for the production of 
electricity which exceeds the performance of conventional 
technology.
  (e) Conventional Technology.--The term ``conventional 
technology'' means--
          (1) coal-fired combustion technology with a design 
        net heat rate of not less than 9,500 Btu per kilowatt 
        hour (HHV) and a carbon equivalents emission rate of 
        not more than 0.54 pounds of carbon per kilowatt hour 
        when the design coal has a heat content of more than 
        9,000 Btu per pound,
          (2) coal-fired combustion technology with a design 
        net heat rate of not less than 10,500 Btu per kilowatt 
        hour (HHV) and a carbon equivalents emission rate of 
        not more than 0.60 pounds of carbon per kilowatt hour 
        when the design coal has a heat content of 9,000 Btu 
        per pound or less, or
          (3) natural gas-fired combustion technology with a 
        design net heat rate of not less than 7,500 Btu per 
        kilowatt hour (HHV) and a carbon equivalents emission 
        rate of not more than 0.24 pounds of carbon per 
        kilowatt hour.
  (f) Design Net Heat Rate.--The design net heat rate shall be 
based on the design annual heat input to and the design annual 
net electrical output from the qualifying advanced clean coal 
technology (determined without regard to such technology's co-
generation of steam).
  (g) Selection Criteria.--Selection criteria for qualifying 
advanced clean coal technology facilities--
          (1) shall be established by the Secretary of Energy 
        as part of a competitive solicitation,
          (2) shall include primary criteria of minimum design 
        net heat rate, maximum design thermal efficiency, 
        environmental performance, and lowest cost to the 
        government, and
          (3) shall include supplemental criteria as determined 
        appropriate by the Secretary of Energy.
  (h) Qualified Investment.--For purposes of subsection (a), 
the term ``qualified investment'' means, with respect to any 
taxable year, the basis of a qualifying advanced clean coal 
technology facility placed in service by the taxpayer during 
such taxable year.
  (i) Qualified Progress Expenditures.--
          (1) Increase in qualified investment.--In the case of 
        a taxpayer who has made an election under paragraph 
        (5), the amount of the qualified investment of such 
        taxpayer for the taxable year (determined under 
        subsection (c) without regard to this section) shall be 
        increased by an amount equal to the aggregate of each 
        qualified progress expenditure for the taxable year 
        with respect to progress expenditure property.
          (2) Progress expenditure property defined.--For 
        purposes of this subsection, the term ``progress 
        expenditure property'' means any property being 
        constructed by or for the taxpayer and which it is 
        reasonable to believe will qualify as a qualifying 
        advanced clean coal technology facility which is being 
        constructed by or for the taxpayer when it is placed in 
        service.
          (3) Qualified progress expenditures defined.--For 
        purposes of this subsection--
                  (A) Self-constructed property.--In the case 
                of any self-constructed property, the term 
                ``qualified progress expenditures'' means the 
                amount which, for purposes of this subpart, is 
                properly chargeable (during such taxable year) 
                to capital account with respect to such 
                property.
                  (B) Nonself-constructed property.--In the 
                case of nonself-constructed property, the term 
                ``qualified progress expenditures'' means the 
                amount paid during the taxable year to another 
                person for the construction of such property.
          (4) Other definitions.--For purposes of this 
        subsection--
                  (A) Self-constructed property.--The term 
                ``self-constructed property'' means property 
                for which it is reasonable to believe that more 
                than half of the construction expenditures will 
                be made directly by the taxpayer.
                  (B) Nonself-constructed property.--The term 
                ``nonself-constructed property'' means property 
                which is not self-constructed property.
                  (C) Construction, etc..--The term 
                ``construction'' includes reconstruction and 
                erection, and the term ``constructed'' includes 
                reconstructed and erected.
                  (D) Only construction of qualifying advanced 
                clean coal technology facility to be taken into 
                account.--Construction shall be taken into 
                account only if, for purposes of this subpart, 
                expenditures therefor are properly chargeable 
                to capital account with respect to the 
                property.
          (5) Election.--An election under this subsection may 
        be made at such time and in such manner as the 
        Secretary may by regulations prescribe. Such an 
        election shall apply to the taxable year for which made 
        and to all subsequent taxable years. Such an election, 
        once made, may not be revoked except with the consent 
        of the Secretary.
  (j) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the rehabilitation 
credit under section 47 or the energy credit under section 48 
is allowed unless the taxpayer elects to waive the application 
of such credit to such property.
  (k) Termination.--This section shall not apply with respect 
to any qualified investment made more than 10 years after the 
effective date of this section.

           *       *       *       *       *       *       *


SEC. 49. AT-RISK RULES.

  (a) General Rule.--
          (1) Certain nonrecourse financing excluded from 
        credit base.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Credit base defined.--For purposes of 
                this paragraph, the term ``credit base'' 
                means--
                          (i) the portion of the basis of any 
                        qualified rehabilitated building 
                        attributable to qualified 
                        rehabilitation expenditures,
                          (ii) the basis of any energy 
                        property, [and]
                          (iii) the amortizable basis of any 
                        qualified timber property[.],
                          (iv) the portion of the basis of any 
                        qualifying system of continuous 
                        emission control attributable to any 
                        qualified investment (as defined by 
                        section 48A(e)), and
                          (v) the portion of the basis of any 
                        qualifying advanced clean coal 
                        technology facility attributable to any 
                        qualified investment (as defined by 
                        section 48B(c)).

           *       *       *       *       *       *       *


SEC. 50. OTHER SPECIAL RULES.

  (a) Recapture in case of dispositions, etc. --
          (1) * * *

           *       *       *       *       *       *       *

          (4) Subsection not to apply in certain cases.--
        Paragraphs (1) [and (2)], (2), (6), and (7) shall not 
        apply to--
                  (A) * * *

           *       *       *       *       *       *       *

          (6) Special rules relating to qualifying system of 
        continuous emission control.--For purposes of applying 
        this subsection in the case of any credit allowable by 
        reason of section 48A, the following shall apply:
                  (A) General rule.--In lieu of the amount of 
                the increase in tax under paragraph (1), the 
                increase in tax shall be an amount equal to the 
                investment tax credit allowed under section 38 
                for all prior taxable years with respect to a 
                qualifying system of continuous emission 
                control (as defined by section 48A(b)(1)) 
                multiplied by a fraction whose numerator is the 
                number of years remaining to fully depreciate 
                under this title the qualifying system of 
                continuous emission control disposed of, and 
                whose denominator is the total number of years 
                over which such unit would otherwise have been 
                subject to depreciation. For purposes of the 
                preceding sentence, the year of disposition of 
                the qualifying system of continuous emission 
                control property shall be treated as a year of 
                remaining depreciation.
                  (B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of 
                paragraph (2) shall apply in the case of 
                qualified progress expenditures for a 
                qualifying system of continuous emission 
                control under section 48A, except that the 
                amount of the increase in tax under 
                subparagraph (A) of this paragraph shall be 
                substituted in lieu of the amount described in 
                such paragraph (2).
                  (C) Application of paragraph.--This paragraph 
                shall be applied separately with respect to the 
                credit allowed under section 38 regarding a 
                qualifying system of continuous emission 
                control.
          (7) Special rules relating to qualifying advanced 
        clean coal technology facility.--For purposes of 
        applying this subsection in the case of any credit 
        allowable by reason of section 48B, the following shall 
        apply:
                  (A) General rule.--In lieu of the amount of 
                the increase in tax under paragraph (1), the 
                increase in tax shall be an amount equal to the 
                investment tax credit allowed under section 38 
                for all prior taxable years with respect to a 
                qualifying advanced clean coal technology 
                facility (as defined by section 48B(b)(1)) 
                multiplied by a fraction whose numerator is the 
                number of years remaining to fully depreciate 
                under this title the qualifying advanced clean 
                coal technology facility disposed of, and whose 
                denominator is the total number of years over 
                which such facility would otherwise have been 
                subject to depreciation. For purposes of the 
                preceding sentence, the year of disposition of 
                the qualifying advanced clean coal technology 
                facility property shall be treated as a year of 
                remaining depreciation.
                  (B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of 
                paragraph (2) shall apply in the case of 
                qualified progress expenditures for a 
                qualifying advanced clean coal technology 
                facility under section 48B, except that the 
                amount of the increase in tax under 
                subparagraph (A) of this paragraph shall be 
                substituted in lieu of the amount described in 
                such paragraph (2).
                  (C) Application of paragraph.--This paragraph 
                shall be applied separately with respect to the 
                credit allowed under section 38 regarding a 
                qualifying advanced clean coal technology 
                facility.
  (c) Basis Adjustment to Investment Credit Property.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Nonapplication.--Paragraphs (1) and (2) shall not 
        apply to any qualifying clean coal technology unit 
        credit under section 48A or any advanced clean coal 
        technology facility credit under section 48B.

           *       *       *       *       *       *       *


Subtitle F--Procedure and Administration

           *       *       *       *       *       *       *


CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS

           *       *       *       *       *       *       *


Subchapter A--Procedure in General

           *       *       *       *       *       *       *


SEC. 6401. AMOUNTS TREATED AS OVERPAYMENTS.

  (a) * * *
  (b) Excessive Credits.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Credits for certain organizations and 
        governmental units.--
                  (A) Allowance of credits.--Any credit which 
                would be allowable under section 45G, 45H, 48A, 
                or 48B with respect to a facility of an entity 
                whether or not such entity is exempt from tax, 
                shall be treated as a credit allowable under 
                subpart C of part IV of subchapter A of chapter 
                1 of subtitle A to such entity if such entity 
                is--
                          (i) an organization described in 
                        section 501(c)(12)(C) and exempt from 
                        tax under section 501(a),
                          (ii) an organization described in 
                        section 1381(a)(2)(C),
                          (iii) a public utility (as defined in 
                        section 136(c)(2)(B)),
                          (iv) a State, the District of 
                        Columbia, or a possession of the United 
                        States, or any political subdivision 
                        thereof, or
                          (v) the Tennessee Valley Authority.
                  (B) Use of credit.--
                          (i) Transfer of credit.--An entity 
                        described in clause (i), (ii), (iii), 
                        or (iv) of subparagraph (A) may assign, 
                        trade, sell, or otherwise transfer any 
                        credit allowable to such entity under 
                        subparagraph (A) to any other person or 
                        entity.
                          (ii) Use of credit as an offset.--
                        Notwithstanding any other provision of 
                        law, in the case of any entity 
                        described in clause (i) or (ii) of 
                        subparagraph (A), any credit allowable 
                        to such entity under subparagraph (A) 
                        may be applied by such entity, without 
                        penalty, as a prepayment of any loan, 
                        debt or other obligation the entity has 
                        made, incurred or guaranteed under the 
                        Rural Electrification Act of 1936 (7 
                        U.S.C. 901 et seq.).
                          (iii) Use by tva.--
                                  (I) In general.--
                                Notwithstanding any other 
                                provision of law, in the case 
                                of an entity described in 
                                subparagraph (A)(v), any credit 
                                allowable under subparagraph 
                                (A) to such entity may be 
                                applied as a credit against the 
                                payments required to be made in 
                                any fiscal year under section 
                                15d(e) of the Tennessee Valley 
                                Authority Act of 1933 (16 
                                U.S.C. 83ln-4(e)) as an annual 
                                return on the appropriations 
                                investment and an annual 
                                repayment sum.
                                  (II) Treatment of credits.--
                                The aggregate amount of credits 
                                described in subparagraph (A) 
                                shall be treated in the same 
                                manner and to the same extent 
                                as if such credits were a 
                                payment in cash and shall be 
                                applied first against the 
                                annual return on the 
                                appropriations investment.
                                  (III) Credit carryover.--With 
                                respect to any fiscal year, if 
                                the aggregate amount of the 
                                credits described in 
                                subparagraph (A) exceeds the 
                                aggregate amount of payment 
                                obligations described in 
                                subclause (I), the excess 
                                amount shall remain available 
                                for application as credits 
                                against the amounts of such 
                                payment obligations in 
                                succeeding fiscal years in the 
                                same manner as described in 
                                this clause.
                  (C) Credit not income.--Neither a transfer 
                under clause (i) nor a use under clause (ii) of 
                subparagraph (B) of any credit allowable under 
                subparagraph (A) shall result in income for 
                purposes of section 501(c)(12).
                  (D) Transfer proceeds treated as arising from 
                essential government function.--Any proceeds 
                derived by an entity described in clause (iii) 
                or (iv) of subparagraph (A) from the transfer 
                of any such credit under subparagraph (B)(I) 
                shall be treated as arising from an essential 
                government function.
                  (E) Treatment of unrelated persons.--For 
                purposes of this title, sales among and between 
                entities described in clauses (i), (ii), (iii), 
                and (iv) of subparagraph (A) shall be treated 
                as sales between unrelated parties.

           *       *       *       *       *       *       *

                              ----------                              


        SECTION 660 OF THE DEPARTMENT OF ENERGY ORGANIZATION ACT

                    authorization of appropriations

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

           *       *       *       *       *       *       *

                              ----------                              


NATIONAL ENERGY CONSERVATION POLICY ACT

           *       *       *       *       *       *       *


TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *


SEC. 542. PURPOSE.

  It is the purpose of this part to promote the conservation 
and the efficient use of energy and water, and the use of 
renewable energy sources, by the Federal Government , and 
generally to promote the production, supply, and marketing of 
energy efficiency products and services and the production, 
supply, and marketing of unconventional and renewable energy 
resources.

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  (a) Energy Performance Requirement for Federal Buildings.--
[(1) Subject to paragraph (2)] Subject to subsection (c), each 
agency shall apply energy conservation measures to, and shall 
improve the design for the construction of, its Federal 
buildings so that the energy consumption per gross square foot 
of its Federal buildings in use [during the fiscal year 1995 is 
at least 10 percent less than the energy consumption per gross 
square foot of its Federal buildings in use during the fiscal 
year 1985 and so that the energy consumption per gross square 
foot of its Federal buildings in use during the fiscal year 
2000 is at least 20 percent less than the energy consumption 
per gross square foot of its Federal buildings in use during 
fiscal year 1985.] during--
  (1) fiscal year 1995 is at least 10 percent;
  (2) fiscal year 2000 is at least 20 percent;
  (3) fiscal year 2005 is at least 30 percent;
  (4) fiscal year 2010 is at least 35 percent;
  (5) fiscal year 2015 is at least 40 percent; and
  (6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its 
Federal buildings in use during fiscal year 1985. To achieve 
the reductions required by this paragraph, an agency shall make 
maximum practicable use of energy efficiency products and 
services and unconventional and renewable energy resources, 
using guidelines issued by the Secretary under subsection (d) 
of this section.
  [(2) An agency may exclude from the requirements of paragraph 
(1) any building, and the associated energy consumption and 
gross square footage, in which energy intensive activities are 
carried out. Each agency shall identify and list in each report 
made under section 548(a) the buildings designated by it for 
such exclusion.]
  (b) Energy Management Requirement for Federal Agencies.--[(1) 
Not] (1) Except as provided in paragraph (5), not later than 
January 1, 2005, each agency shall, to the maximum extent 
practicable, install in Federal buildings owned by the United 
States all energy and water conservation measures with payback 
periods of less than 10 years, as determined by using the 
methods and procedures developed pursuant to section 544.

           *       *       *       *       *       *       *

  (5)(A)(i) Agencies shall select only Energy Star products 
when available when acquiring energy-using products. For 
product groups where Energy Star labels are not yet available, 
agencies shall select products that are in the upper 25 percent 
of energy efficiency as designated by FEMP. The Secretary of 
Energy shall develop guidelines within 180 days after the 
enactment of this paragraph for exemptions to this section when 
equivalent products do not exist, are impractical, or do not 
meet the agency mission requirements.
  (ii) The Administrator of the General Services Administration 
and the Secretary of Defense (acting through the Defense 
Logistics Agency), with assistance from the Administrator of 
the Environmental Protection Agency and the Secretary of 
Energy, shall create clear catalogue listings that designate 
Energy Star products in both print and electronic formats. 
After any existing federal inventories are exhausted, 
Administrator of the General Services Administration and the 
Secretary of Defense (acting through the Defense Logistics 
Agency) shall only replace inventories with energy-using 
products that are Energy Star, products that are rated in the 
top 25 percent of energy efficiency, or products that are 
exempted as designated by FEMP and defined in clause (i).
  (iii) Agencies shall incorporate energy-efficient criteria 
consistent with Energy Star and other FEMP designated energy 
efficiency levels into all guide specifications and project 
specifications developed for new construction and renovation, 
as well as into product specification language developed for 
Basic Ordering Agreements, Blanket Purchasing Agreements, 
Government Wide Acquisition Contracts, and all other purchasing 
procedures.
  (iv) The legislative branch shall be subject to this 
subparagraph to the same extent and in the same manner as are 
the Federal agencies referred to in section 521(1).
  (B) Not later than 6 months after the date of the enactment 
of this paragraph, the Secretary of Energy shall establish 
guidelines defining the circumstances under which an agency 
shall not be required to comply with subparagraph (A). Such 
circumstances may include the absence of Energy Star products, 
systems, or designs that serve the purpose of the agency, 
issues relating to the compatibility of a product, system, or 
design with existing buildings or equipment, and excessive cost 
compared to other available and appropriate products, systems, 
or designs.
  (C) Subparagraph (A) shall apply to agency acquisitions 
occurring on or after October 1, 2002.
  [(c) Exclusions.--(1) An agency may exclude, from the energy 
consumption requirements for the year 2000 established under 
subsection (a) and the requirements of subsection (b)(1), any 
Federal building or collection of Federal buildings, and the 
associated energy consumption and gross square footage, if the 
head of such agency finds that compliance with such 
requirements would be impractical. A finding of 
impracticability shall be based on the energy intensiveness of 
activities carried out in such Federal buildings or collection 
of Federal buildings, the type and amount of energy consumed, 
the technical feasibility of making the desired changes, and, 
in the cases of the Departments of Defense and Energy, the 
unique character of certain facilities operated by such 
Departments.
  [(2) Each agency shall identify and list, in each report made 
under section 548(a), the Federal buildings designated by it 
for such exclusion. The Secretary shall review such findings 
for consistency with the impracticability standards set forth 
in paragraph (1), and may within 90 days after receipt of the 
findings, reverse a finding of impracticability. In the case of 
any such reversal, the agency shall comply with the energy 
consumption requirements for the building concerned.]
  (c) Exclusions.--(1) A Federal building may be excluded from 
the requirements of subsections (a) and (b) only if--
          (A) the President declares the building to require 
        exclusion for national security reasons; and
          (B) the agency responsible for the building has--
                  (i) completed and submitted all federally 
                required energy management reports; and
                  (ii) achieved compliance with the energy 
                efficiency requirements of this Act, the Energy 
                Policy Act of Executive Orders, and other 
                Federal law;
                  (iii) implemented all practical, life cycle 
                cost-effective projects in the excluded 
                building.
  (2) The President shall only declare buildings described in 
paragraph (1)(A) to be excluded, not ancillary or nearby 
facilities that are not in themselves national security 
facilities.
  (d) Implementation Steps.--The Secretary shall consult with 
the Secretary of Defense and the Administrator of General 
Services in developing guidelines for the implementation of 
this part. Such guidelines shall include appropriate model 
technical standards for energy efficiency and unconventional 
and renewable energy resources products and services. Such 
standards shall reflect, to the extent practicable, evaluation 
of both currently marketed and potentially marketable products 
and services that could be used by agencies to improve energy 
efficiency and increase unconventional and renewable energy 
resources. To meet the requirements of this section, each 
agency shall--
          (1) * * *

           *       *       *       *       *       *       *

  (e) Studies.--To assist in developing the guidelines issued 
by the Secretary under subsection (d) and in furtherance of the 
purposes of this section, the Secretary shall conduct studies 
to identify and encourage the production and marketing of 
energy efficiency products and services and unconventional and 
renewable energy resources. To conduct such studies, there are 
authorized to be appropriated to the Secretary $20,000,000 for 
each of the fiscal years 2003 through 2010.
  (f) Metering.--(1) By October 1, 2004, all Federal buildings 
including buildings owned by the legislative branch and the 
Federal court system and other energy-using structures shall be 
metered or submetered in accordance with guidelines established 
by the Secretary under paragraph (2).
  (2) Not later than 6 months after the date of the enactment 
of this subsection, the Secretary, in consultation with 
representatives from the metering industry, energy services 
industry, national laboratories, colleges of higher education, 
and federal facilities energy managers, shall establish 
guidelines for agencies to carry out paragraph (1). Such 
guidelines shall take into consideration each of the following:
          (A) Cost.
          (B) Resources, including personnel, required to 
        maintain, interpret, and report on data so that the 
        meters are continually reviewed.
          (C) Energy management potential.
          (D) Energy savings.
          (E) Utility contract aggregation.
          (F) Savings from operations and maintenance.
  (3) Any building excluded under subsection (c) shall be 
individually metered or submetered as the Secretary determines 
necessary.
  (g) Priority Response Reviews.--Each agency shall--
          (1) not later than 9 months after the date of the 
        enactment of this subsection, undertake a comprehensive 
        review of all practicable measures for--
                  (A) increasing energy and water conservation, 
                and
                  (B) using renewable energy sources; and
          (2) not later than 180 days after completing the 
        review, implement measures to achieve not less than 50 
        percent of the potential efficiency and renewable 
        savings identified in the review.
  (h) Use of Interval Data in Federal Buildings.--Not later 
than January 1, 2003, each agency shall utilize, to the maximum 
extent practicable, for the purposes of efficient use of energy 
and reduction in the cost of electricity consumed in its 
Federal buildings, interval consumption data that measure on a 
real time or daily basis consumption of electricity in its 
Federal buildings. To meet the requirements of this subsection 
each agency shall prepare and submit at the earliest 
opportunity pursuant to section 548(a) to the Secretary, a plan 
describing how the agency intends to meet such requirements, 
including how it will designate personnel primarily responsible 
for achieving such requirements, and otherwise implement this 
subsection.

           *       *       *       *       *       *       *


SEC. 546. INCENTIVES FOR AGENCIES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Utility Incentive Programs.--(1) * * *

           *       *       *       *       *       *       *

  (3) Each agency is encouraged to enter into negotiations with 
electric, water, and gas utilities to design cost-effective 
demand management and conservation incentive programs to 
address the unique needs of facilities utilized by such agency. 
Such a utility incentive program may include a contract or 
contract term designed to provide for cost-effective 
electricity demand management, energy efficiency, or water 
conservation.

           *       *       *       *       *       *       *

  (6) A utility incentive program may include a contract or 
contract term for a reduction in the energy, from a base cost 
established through a methodology set forth in such a contract, 
that would otherwise be utilized in one or more federally owned 
buildings or other federally owned facilities by reason of the 
construction or operation of one or more replacement buildings 
or facilities, as well as benefits ancillary to the purpose of 
such contract or contract term, including savings resulting 
from reduced costs of operation and maintenance at new or 
additional buildings or facilities when compared with the costs 
of operation and maintenance at existing buildings or 
facilities.
  (7) Federal agencies are encouraged to participate in State 
or regional demand side reduction programs, including those 
operated by wholesale market institutions such as independent 
system operators, regional transmission organizations and other 
entities. The availability of such programs, and the savings 
resulting from such participation, should be included in the 
evaluation of energy options for Federal facilities.

           *       *       *       *       *       *       *

  (e) Retention of Energy Savings.--An agency may retain any 
funds appropriated to that agency for energy expenditures, at 
buildings subject to the requirements of section 543(a) and 
(b), that are not made because of energy savings. Such funds 
may be used only for energy efficiency or unconventional and 
renewable energy resources projects.

           *       *       *       *       *       *       *


SEC. 548. REPORTS.

  (a) Reports to the Secretary.--Each agency shall transmit a 
report to the Secretary, in accordance with guidelines 
established by and at times specified by the Secretary but at 
least annually, with complete information on its activities 
under this part, including information on--
          (1) the agency's progress in achieving the goals 
        established by section 543; [and]
          (2) the procedures being used by the agency pursuant 
        to section 546(a)(2), the number of contracts entered 
        into by such agency under title VIII of this Act, the 
        energy and cost savings that have resulted from such 
        contracts, the use of such cost savings under section 
        546(c), and any problem encountered in entering into 
        such contracts and otherwise implementing section 
        546[.];
          (3) an energy emergency response plan developed by 
        the agency;
          (4) the quantity, and a description of, products, 
        systems, and designs acquired by the agency that are 
        not acquired as provided in section 543(b)(5)(A); and
          (5) the percentage of the agency's capital 
        expenditures that are used for energy efficiency and 
        unconventional and renewable energy resources capital 
        improvements.
  (b) Reports to Congress.--The Secretary shall report, not 
later than April 2 of each year, with respect to each fiscal 
year beginning after the date of the enactment of this 
subsection, to the Congress--
          (1) on all activities carried out under this part and 
        on the progress made toward achievement of the 
        objectives of this part, including--
                  (A) a [copy of the] list of the exclusions 
                made under [sections 543(a)(2) and 543(c)(3)] 
                section 543(c);

           *       *       *       *       *       *       *

          (3) the extent and nature of interagency exchange of 
        information concerning the conservation and efficient 
        utilization of energy; [and]
          (4) the information required under section 161(d) of 
        the Energy Policy Act of 1992[.]; and
          (5) all information transmitted to the Secretary 
        under subsection (a).

           *       *       *       *       *       *       *

  [(c) Other Report.--The Secretary, in consultation with the 
Administrator of General Services, shall--
          [(1) conduct a study and evaluate legal, 
        institutional, and other constraints to connecting 
        buildings owned or leased by the Federal Government to 
        district heating and district cooling systems; and
          [(2) not later than 18 months after the date of the 
        enactment of this subsection, transmit to the Congress 
        a report containing the findings and conclusions of 
        such study, including recommendations for the 
        development of streamlined processes for the 
        consideration of connecting buildings owned or leased 
        by the Federal Government to district heating and 
        cooling systems.]
  (c) Agency Reports to Congress.--Each agency shall annually 
report to the Congress, as part of the agency's annual budget 
request, on all of the agency's activities implementing any 
Federal energy management requirement.

           *       *       *       *       *       *       *


SEC. 551. DEFINITIONS.

  For the purposes of this part--
          (1) * * *

           *       *       *       *       *       *       *

          (8) the term ``renewable energy sources'' includes, 
        but is not limited to, sources such as agriculture and 
        urban waste, geothermal energy, solar energy, and wind 
        energy; [and]
          (9) the term ``Secretary'' means the Secretary of 
        Energy[.]; and
          (10) the term ``unconventional and renewable energy 
        resources'' includes renewable energy sources, 
        hydrogen, fuel cells, cogeneration, combined heat and 
        power, heat recovery (including by use of a Stirling 
        heat engine), and distributed generation.

           *       *       *       *       *       *       *


            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

  (a) In General.--(1) * * *
  (2)(A) * * *

           *       *       *       *       *       *       *

  (C) Federal agencies may incur obligations pursuant to such 
contracts to finance energy or water conservation measures 
provided guaranteed savings exceed the debt service 
requirements.

           *       *       *       *       *       *       *

  (E) A Federal agency shall engage in contracting and auditing 
to implement energy savings performance contracts as necessary 
and appropriate to ensure compliance with the requirements of 
this Act, particularly the energy efficiency requirements of 
section 543.
  (3)(A) In the case of an energy savings contract or energy 
savings performance contract providing for energy savings 
through the construction and operation of one or more buildings 
or facilities to replace one or more existing buildings or 
facilities, benefits ancillary to the purpose of such contract 
under paragraph (1) may include savings resulting from reduced 
costs of operation and maintenance at such replacement 
buildings or facilities when compared with costs of operation 
and maintenance at the buildings or facilities being replaced, 
established through a methodology set forth in the contract.
  (B) Notwithstanding paragraph (2)(B), aggregate annual 
payments by an agency under an energy savings contract or 
energy savings performance contract referred to in subparagraph 
(A) may take into account (through the procedures developed 
pursuant to this section) savings resulting from reduced costs 
of operation and maintenance as described in that subparagraph.

           *       *       *       *       *       *       *

  [(c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2003.]

           *       *       *       *       *       *       *


SEC. 804. DEFINITIONS.

  For purposes of this title, the following definitions apply:
          (1) * * *
          [(2) The term ``energy savings'' means a reduction in 
        the cost of energy, from a base cost established 
        through a methodology set forth in the contract, 
        utilized in an existing federally owned building or 
        buildings or other federally owned facilities as a 
        result of--
                  [(A) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services; or
                  [(B) the increased efficient use of existing 
                energy sources by cogeneration or heat 
                recovery, excluding any cogeneration process 
                for other than a federally owned building or 
                buildings or other federally owned facilities.
          [(3) The terms ``energy savings contract'' and 
        ``energy savings performance contract'' mean a contract 
        which provides for the performance of services for the 
        design, acquisition, installation, testing, operation, 
        and, where appropriate, maintenance and repair, of an 
        identified energy conservation measure or series of 
        measures at one or more locations. Such contracts--
                  [(A) may provide for appropriate software 
                licensing agreements; and
                  [(B) shall, with respect to an agency 
                facility that is a public building as such term 
                is defined in section 13(1) of the Public 
                Buildings Act of 1959 (40 U.S.C. 612(1)), be in 
                compliance with the prospectus requirements and 
                procedures of section 7 of the Public Buildings 
                Act of 1959 (40 U.S.C. 606).
          [(4) The term ``energy conservation measures'' has 
        the meaning given such term in section 551(4).]
          (2)(A) The term ``energy savings'' means a reduction 
        in the cost of energy or water, from a base cost 
        established through a methodology set forth in the 
        contract, used in an existing federally owned building 
        or buildings or other federally owned facilities as a 
        result of--
                  (i) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services;
                  (ii) the increased efficient use of existing 
                energy sources by solar and ground source 
                geothermal resources, cogeneration or heat 
                recovery (including by the use of a Stirling 
                heat engine), excluding any cogeneration 
                process for other than a federally owned 
                building or buildings or other federally owned 
                facilities; or
                  (iii) the increased efficient use of existing 
                water sources.
          (B) The term ``energy savings'' also means, in the 
        case of a replacement building or facility described in 
        section 801(a)(3), a reduction in the cost of energy, 
        from a base cost established through a methodology set 
        forth in the contract, that would otherwise be utilized 
        in one or more existing federally owned buildings or 
        other federally owned facilities by reason of the 
        construction and operation of the replacement building 
        or facility.
          (3) The terms ``energy savings contract'' and 
        ``energy savings performance contract'' mean a contract 
        which provides for--
                  (A) the performance of services for the 
                design, acquisition, installation, testing, 
                operation, and, where appropriate, maintenance 
                and repair, of an identified energy or water 
                conservation measure or series of measures at 
                one or more locations; or
                  (B) energy savings through the construction 
                and operation of one or more buildings or 
                facilities to replace one or more existing 
                buildings or facilities.
          (4) The term ``energy or water conservation measure'' 
        means--
                  (A) an energy conservation measure, as 
                defined in section 551(4) (42 U.S.C. 8259(4)); 
                or
                  (B) a water conservation measure that 
                improves water efficiency, is life cycle cost 
                effective, and involves water conservation, 
                water recycling or reuse, improvements in 
                operation or maintenance efficiencies, retrofit 
                activities, or other related activities, not at 
                a Federal hydroelectric facility.

           *       *       *       *       *       *       *

                              ----------                              


                       ENERGY POLICY ACT OF 1992

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Energy 
Policy Act of 1992''.
  (b) Table of Contents.--

                       TITLE I--ENERGY EFFICIENCY

                          Subtitle A--Buildings

Sec. 101. Building energy efficiency standards.
     * * * * * * *

                  TITLE III--ALTERNATIVE FUELS--GENERAL

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

TITLE I--ENERGY EFFICIENCY

           *       *       *       *       *       *       *


Subtitle F--Federal Agency Energy Management

           *       *       *       *       *       *       *


SEC. 160. INSPECTOR GENERAL REVIEW AND AGENCY ACCOUNTABILITY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Inspector General Review.--Each Inspector General 
established under section 2 of the Inspector General Act of 
1978 (5 U.S.C. App.) [is encouraged to conduct periodic] shall 
conduct periodic reviews of agency compliance with part 3 of 
title V of the National Energy Conservation Policy Act, the 
provisions of this subtitle, and other laws relating to energy 
consumption. Such reviews shall not be inconsistent with the 
performance of the required duties of the Inspector General's 
office.

           *       *       *       *       *       *       *


                 TITLE III--ALTERNATIVE FUELS--GENERAL

SEC. 301. DEFINITIONS.

  For purposes of this title, title IV, and title V (unless 
otherwise specified)--
          (1) * * *

           *       *       *       *       *       *       *

          (13) the term ``motor vehicle'' has the meaning given 
        such term under section 216(2) of the Clean Air Act (42 
        U.S.C. 7550(2)); [and]
          (14) the term ``replacement fuel'' means the portion 
        of any motor fuel that is methanol, ethanol, or other 
        alcohols, natural gas, liquefied petroleum gas, 
        hydrogen, coal derived liquid fuels, fuels (other than 
        alcohol) derived from biological materials, electricity 
        (including electricity from solar energy), ethers, or 
        any other fuel the Secretary determines, by rule, is 
        substantially not petroleum and would yield substantial 
        energy security benefits and substantial environmental 
        benefits[.]; and
  (15) The term ``hybrid vehicle'' means a motor vehicle which 
draws propulsion energy from onboard sources of stored energy 
which are both--
          (A) an internal combustion or heat engine using 
        combustible fuel; and
          (B) a rechargeable energy storage system.

           *       *       *       *       *       *       *


SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.

  (a) * * *
  (b) Percentage Requirements.--(1) Of the total number of 
vehicles acquired by a Federal fleet, at least--
          (A) * * *

           *       *       *       *       *       *       *

shall be alternative fueled vehicles. Of the total number of 
vehicles acquired by a Federal fleet in fiscal years 2004 and 
2005, at least 5 percent of the vehicles in addition to those 
covered by the preceding sentence shall be alternative fueled 
vehicles or hybrid vehicles and in fiscal year 2006 and 
thereafter at least 10 percent of the vehicles in addition to 
those covered by the preceding sentence shall be alternative 
fueled vehicles or hybrid vehicles.

           *       *       *       *       *       *       *


SEC. 304. REFUELING.

  (a) * * *
  [(b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for carrying out this 
section such sums as may be necessary for fiscal years 1993 
through 1998, to remain available until expended.]
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary or, as appropriate, the head 
of each Federal fleet subject to the provisions of this section 
and section 313 of this Act, such sums as may be necessary to 
achieve the purposes of section 313(a) and the provisions of 
this section. Such sums shall remain available until expended.

           *       *       *       *       *       *       *


SEC. 312. BIODIESEL FUEL USE CREDITS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Credit [Not] a Section 508 Credit.--A credit under this 
section shall [not] be considered a credit under section 508.

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

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

           *       *       *       *       *       *       *


TITLE XII--RENEWABLE ENERGY

           *       *       *       *       *       *       *


SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.

  (a) Incentive Payments.--For electric energy generated and 
sold by a qualified renewable energy facility during the 
incentive period, the Secretary shall make, subject to the 
availability of appropriations, incentive payments to the owner 
or operator of such facility. The amount of such payment made 
to any such owner or operator shall be as determined under 
subsection (e). Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment 
application which establishes that the applicant is eligible to 
receive such payment [and which satisfies such other 
requirements as the Secretary deems necessary. Such application 
shall be in such form, and shall be submitted at such time, as 
the Secretary shall establish.]. The Secretary shall establish 
other procedures necessary for efficient administration of the 
program. The Secretary shall not establish any criteria or 
procedures that have the effect of assigning to proposals a 
higher or lower priority for eligibility or allocation of 
appropriated funds on the basis of the energy source proposed.
  (b) Qualified Renewable Energy Facility.--For purposes of 
this section, a qualified renewable energy facility is a 
facility which is owned by [a State or any political 
subdivision of a State (or an agency, authority, or 
instrumentality of a State or a political subdivision), by any 
corporation or association which is wholly owned, directly or 
indirectly, by one or more of the foregoing, or by a nonprofit 
electrical cooperative] an electricity-generating cooperative 
exempt from taxation under section 501(c)(12) or section 
1381(a)(2)(C) of the Internal Revenue Code of 1986, a public 
utility described in section 115 of such Code, a State, 
Commonwealth, territory, or possession of the United States or 
the District of Columbia, or a political subdivision thereof, 
or an Indian tribal government or subdivision thereof, and 
which generates electric energy for sale in, or affecting, 
interstate commerce using solar, wind, biomass, landfill gas, 
or geothermal energy, except that--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Eligibility Window.--Payments may be made under this 
section only for electricity generated from a qualified 
renewable energy facility first used [during the 10-fiscal year 
period beginning with the first full fiscal year occurring 
after the enactment of this section] before October 1, 2013.
  (d) Payment Period.--A qualified renewable energy facility 
may receive payments under this section for a 10-fiscal year 
period. Such period shall begin with the fiscal year in which 
electricity generated from the facility is first eligible for 
such or in which the Secretary finds that all necessary Federal 
and State authorizations have been obtained to begin 
construction of the facility payments.
  (e) Amount of Payment.--
          (1) In general.--Incentive payments made by the 
        Secretary under this section to the owner or operator 
        of any qualified renewable energy facility shall be 
        based on the number of kilowatt hours of electricity 
        generated by the facility through the use of solar, 
        wind, biomass, landfill gas, or geothermal energy 
        during the payment period referred to in subsection 
        (d). For any facility, the amount of such payment shall 
        be 1.5 cents per kilowatt hour, adjusted as provided in 
        paragraph (2).

           *       *       *       *       *       *       *

  (f) Sunset.--No payment may be made under this section to any 
facility after [the expiration of the 20-fiscal year period 
beginning with the first full fiscal year occurring after the 
enactment of this section] September 30, 2023, and no payment 
may be made under this section to any facility after a payment 
has been made with respect to such facility for a 10-fiscal 
year period.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary for fiscal years [1993, 1994, 
and 1995] 2003 through 2023 such sums as may be necessary to 
carry out the purposes of this section. Funds may be 
appropriated pursuant to this subsection to remain available 
until expended.

           *       *       *       *       *       *       *

                              ----------                              


ENERGY POLICY AND CONSERVATION ACT

           *       *       *       *       *       *       *


                 TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

  Part B--Energy Conservation Program for Consumer Products Other Than 
                               Automobiles

Sec. 321.   Definitions.
     * * * * * * *
Sec. 324A. Energy Star program.

           *       *       *       *       *       *       *


TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *


 Part B--Energy Conservation Program for Consumer Products Other Than 
                              Automobiles

                              definitions

  Sec. 321. For purposes of this part:
          (1) * * *

           *       *       *       *       *       *       *

          (32) The term ``residential furnace fan'' means an 
        electric fan installed as part of a furnace for 
        purposes of circulating air through the system air 
        filters, the heat exchangers or heating elements of the 
        furnace, and the duct work.
          (33) The terms ``residential central air conditioner 
        fan'' and ``heat pump circulation fan'' mean an 
        electric fan installed as part of a central air 
        conditioner or heat pump for purposes of circulating 
        air through the system air filters, the heat exchangers 
        of the air conditioner or heat pump, and the duct work.
          (34) The term ``suspended ceiling fan'' means a fan 
        intended to be mounted to a ceiling outlet box, ceiling 
        building structure, or to a vertical rod suspended from 
        the ceiling, and which as blades which rotate below the 
        ceiling and consists of an electric motor, fan blades 
        (which rotate in a direction parallel to the floor), an 
        optional lighting kit, and one or more electrical 
        controls (integral or remote) governing fan speed and 
        lighting operation.
          (35) The term ``refrigerated bottled or canned 
        beverage vending machine'' means a machine that cools 
        bottled or canned beverages and dispenses them upon 
        payment.

                                coverage

  Sec. 322. (a) In General.--The following consumer products, 
excluding those consumer products designed solely for use in 
recreational vehicles and other mobile equipment, are covered 
products:
          (1) * * *

           *       *       *       *       *       *       *

          (19) Beginning on the effective date for standards 
        established pursuant to subsection (w) of section 325, 
        each product referred to in such subsection (w).
          [(19)] (20) Any other type of consumer product which 
        the Secretary classifies as a covered product under 
        subsection (b).

           *       *       *       *       *       *       *


                            test procedures

  Sec. 323. (a) * * *

           *       *       *       *       *       *       *

  (f) Additional Consumer Products.--The Secretary shall within 
18 months after the date of enactment of this subsection 
prescribe testing requirements for residential furnace fans, 
residential central air conditioner fans, heat pump circulation 
fans, suspended ceiling fans, and refrigerated bottled or 
canned beverage vending machines. Such testing requirements 
shall be based on existing test procedures used in industry to 
the extent practical and reasonable. In the case of residential 
furnace fans, residential central air conditioner fans, heat 
pump circulation fans, and suspended ceiling fans, such test 
procedures shall include efficiency at both maximum output and 
at an output no more than 50 percent of the maximum output.

                                labeling

  Sec. 324. (a) In General.--(1) * * *
  (2)(A) * * *

           *       *       *       *       *       *       *

  (F) Not later than one year after the date of enactment of 
this subparagraph, the Commission shall initiate a rulemaking 
to prescribe labeling rules under this section applicable to 
consumer products that are not covered products if it 
determines that labeling of such products is likely to assist 
consumers in making purchasing decisions and is technologically 
and economically feasible.
  (G) Not later than three months after the date of enactment 
of this subparagraph, the Commission shall initiate a 
rulemaking to consider the effectiveness of the current 
consumer products labeling program in assisting consumers in 
making purchasing decisions and improving energy efficiency and 
to consider changes to the label that would improve the 
effectiveness of the label. Such rulemaking shall be completed 
within 15 months of the date of enactment of this subparagraph.

           *       *       *       *       *       *       *

  (5) The Secretary shall within 6 months after the date on 
which energy conservation standards are prescribed by the 
Secretary for covered products referred to in section 325(w), 
prescribe, by rule, labeling requirements for such products. 
These requirements shall take effect on the same date as the 
standards prescribed pursuant to section 325(w).

           *       *       *       *       *       *       *

  (e) Study of Certain Products.--(1) The Secretary, in 
consultation with the Commission, shall study consumer products 
for which labeling rules under this section have not been 
proposed, in order to determine [(1)] (A) the aggregate energy 
consumption of such products, and [(2)] (B) whether the 
imposition of labeling requirements under this section would be 
feasible and useful to consumers in making purchasing 
decisions. The Secretary shall include the results of such 
study in the annual report under section 338.
  (2) The Secretary shall make recommendations to the 
Commission within 180 days of the date of enactment of this 
paragraph regarding labeling of consumer products that are not 
covered products in accordance with this section, where such 
labeling is likely to assist consumers in making purchasing 
decisions and is technologically and economically feasible.

           *       *       *       *       *       *       *


SEC. 324A. ENERGY STAR PROGRAM.

  (a) In General.--There is established at the Department of 
Energy and the Environmental Protection Agency a program to 
identify and promote energy-efficient products and buildings in 
order to reduce energy consumption, improve energy security, 
and reduce pollution through labeling of products and buildings 
that meet the highest energy efficiency standards. 
Responsibilities under the program shall be divided between the 
Department of Energy and the Environmental Protection Agency 
consistent with the terms of agreements between the two 
agencies. The Administrator and the Secretary shall--
          (1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving 
        energy efficiency and to reduce pollution;
          (2) work to enhance public awareness of the Energy 
        Star label; and
          (3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is 
authorized to be appropriated for fiscal years 2002 through 
2006 such sums as may be necessary, to remain available until 
expended.
  (b) Study of Certain Products and Buildings.--Within 180 days 
after the date of enactment of this section, the Secretary and 
the Administrator, consistent with the terms of agreements 
between the two agencies, shall determine whether the Energy 
Star label should be extended to additional products and 
buildings, including the following:
          (1) Air cleaners.
          (2) Ceiling fans.
          (3) Light commercial heating and cooling products.
          (4) Reach-in refrigerators and freezers.
          (5) Telephony.
          (6) Vending machines.
          (7) Residential water heaters.
          (8) Refrigerated beverage merchandisers.
          (9) Commercial ice makers.
          (10) School buildings.
          (11) Retail buildings.
          (12) Health care facilities.
          (13) Homes.
          (14) Hotels and other commercial lodging facilities.
          (15) Restaurants and other food service facilities.
          (16) Solar water heaters.
          (17) Building-integrated photovoltaic systems.
          (18) Reflective pigment coatings.
          (19) Windows.
          (20) Boilers.
          (21) Devices to extend the life of motor vehicle oil.
  (c) Cool Roofing.--In determining whether the Energy Star 
label should be extended to roofing products, the Secretary and 
the Administrator shall work with the roofing products industry 
to determine the appropriate solar reflective index of roofing 
products.

           *       *       *       *       *       *       *


                     energy conservation standards

  Sec. 325. (a) * * *

           *       *       *       *       *       *       *

  (m) Further Rulemaking.--(1) After issuance of the last final 
rules required under subsections (b) through (i) of this 
section, the Secretary may publish final rules to determine 
whether standards for a covered product should be amended. An 
amendment prescribed under this subsection shall apply to 
products manufactured after a date which is 5 years after--
          (A) * * *

           *       *       *       *       *       *       *

  (2) Not later than one year after the date of enactment of 
the Energy Advancement and Conservation Act of 2001, the 
Secretary shall conduct a rulemaking to determine whether 
consumer products not classified as a covered product under 
section 322(a)(1) through (18) meet the criteria of section 
322(b)(1). If the Secretary finds that a consumer product not 
classified as a covered product meets the criteria of section 
322(b)(1), he shall prescribe, in accordance with subsections 
(o) and (p), an energy conservation standard for such consumer 
product, if such standard is reasonably probable to be 
technologically feasible and economically justified within the 
meaning of subsection (o)(2)(A).
  (n) Petition for an Amended Standard.--(1) With respect to 
each covered product described in paragraphs (1) through [(11), 
and in paragraphs (13) and] (14) of section 322(a), any person 
may petition the Secretary to conduct a rulemaking to determine 
for a covered product if the standards contained either in the 
last final rule required under subsections (b) through (i) of 
this section or in a final rule published under this section 
should be amended.

           *       *       *       *       *       *       *

  (u) Standby Mode Electric Energy Consumption by Household 
Appliances.--(1) In this subsection:
          (A) The term ``household appliance'' means any device 
        that uses household electric current and operates in a 
        standby mode except digital televisions, digital set 
        top boxes, and digital video recorders.
          (B) The term ``standby mode'' means a mode in which a 
        household appliance consumes the least amount of 
        electric energy that the household appliance is capable 
        of consuming without being completely switched off.
  (2)(A) Except as provided in subparagraph (B), a household 
appliance that is manufactured in, or imported for sale in, the 
United States on or after the date that is 2 years after the 
date of enactment of this subsection shall not consume in 
standby mode more than 1 watt.
  (B)(i) A household appliance model that, as of the date of 
enactment of this subsection, is recognized under the Energy 
Star program administered by the Administrator of the 
Environmental Protection Agency and the Secretary shall have 
until January 1, 2005, to meet the standard under subparagraph 
(A).
  (ii) In the case of analog televisions, the Secretary shall 
prescribe, on or after the date that is 2 years after the date 
of enactment of this subsection, in accordance with subsections 
(o) and (p) of section 325, an energy conservation standard 
that is technologically feasible and economically justified 
under section 325(o)(2)(A) (in lieu of the 1 watt standard 
under subparagraph (A)).
  (3)(A) A manufacturer or importer of a household appliance 
may submit to the Secretary an application for an exemption of 
the household appliance from the standard under paragraph (2).
  (B) The Secretary shall grant an exemption for a household 
appliance for which an application is made under subparagraph 
(A) if the applicant provides evidence showing that, and the 
Secretary determines that--
          (i) it is not technically feasible to modify the 
        household appliance to enable the household appliance 
        to meet the standard;
          (ii) the standard is incompatible with an energy 
        efficiency standard applicable to the household 
        appliance under another subsection; or
          (iii) the cost of electricity that a typical consumer 
        would save in operating the household appliance meeting 
        the standard would not equal the increase in the price 
        of the household appliance that would be attributable 
        to the modifications that would be necessary to enable 
        the household appliance to meet the standard by the 
        earlier of--
                  (I) the date that is 7 years after the date 
                of purchase of the household appliance; or
                  (II) the end of the useful life of the 
                household appliance.
  (C) If the Secretary determines that it is not technically 
feasible to modify a household appliance to meet the standard 
under paragraph (2), the Secretary shall establish a different 
standard for the household appliance in accordance with the 
criteria under subsection (l).
  (4)(A) Not later than 1 year after the date of enactment of 
this subsection, the Secretary shall establish a test procedure 
for determining the amount of consumption of power by a 
household appliance operating in standby mode.
  (B) In establishing the test procedure, the Secretary shall 
consider--
          (i) international test procedures under development;
          (ii) test procedures used in connection with the 
        Energy Star program; and
          (iii) test procedures used for measuring power 
        consumption in standby mode in other countries.
  (5) Further reduction of standby power consumption.--The 
Secretary shall provide technical assistance to manufacturers 
in achieving further reductions in standby mode electric energy 
consumption by household appliances.
  (v) Standby Mode Electric Energy Consumption by Digital 
Televisions, Digital Set Top Boxes, and Digital Video 
Recorders.--The Secretary shall initiate on January 1, 2007 a 
rulemaking to prescribe, in accordance with subsections (o) and 
(p), an energy conservation standard of standby mode electric 
energy consumption by digital television sets, digital set top 
boxes, and digital video recorders. The Secretary shall issue a 
final rule prescribing such standards not later than 18 months 
thereafter. In determining whether a standard under this 
section is technologically feasible and economically justified 
under section 325(o)(2)(A), the Secretary shall consider the 
potential effects on market penetration by digital products 
covered under this section, and shall consider any 
recommendations by the FCC regarding such effects.
  (w) Residential Furnace Fans, Central Air and Heat Pump 
Circulation Fans, Suspended Ceiling Fans, and Vending 
Machines.--(1) The Secretary shall, within 18 months after the 
date of enactment of this subsection, assess the current and 
projected future market for residential furnace fans, 
residential central air conditioner and heat pump circulation 
fans, suspended ceiling fans, and refrigerated bottled or 
canned beverage vending machines. This assessment shall include 
an examination of the types of products sold, the number of 
products in use, annual sales of these products, energy used by 
these products sold, the number of products in use, annual 
sales of these products, energy used by these products, 
estimates of the potential energy savings from specific 
technical improvements to these products, and an examination of 
the cost-effectiveness of these improvements. Prior to the end 
of this time period, the Secretary shall hold an initial 
scoping workshop to discuss and receive input to plans for 
developing minimum efficiency standards for these products.
  (2) The Secretary shall within 24 months after the date on 
which testing requirements are prescribed by the Secretary 
pursuant to section 323(f), prescribe, by rule, energy 
conservation standards for residential furnace fans, 
residential central air conditioner and heat pump circulation 
fans, suspended ceiling fans, and refrigerated bottled or 
canned beverage vending machines. In establishing these 
standards, the Secretary shall use the criteria and procedures 
contained in subsections (l) and (m). Any standard prescribed 
under this section shall apply to products manufactured 36 
months after the date such rule is published.

                           Consumer Education

  Sec. 337. (a) * * *

           *       *       *       *       *       *       *

  (c) HVAC Maintenance.--For the purpose of ensuring that 
installed air conditioning and heating systems operate at their 
maximum rated efficiency levels, the Secretary shall, within 
180 days of the date of enactment of this subsection, develop 
and implement a public education campaign to educate homeowners 
and small business owners concerning the energy savings 
resulting from regularly scheduled maintenance of air 
conditioning, heating, and ventilating systems. In developing 
and implementing this campaign, the Secretary shall consider 
support by the Department of public education programs 
sponsored by trade and professional or energy efficiency 
organizations. The public service information shall provide 
sufficient information to allow consumers to make informed 
choices from among professional, licensed (where State or local 
licensing is required) contractors. There are authorized to be 
appropriated to carry out this subsection $5,000,000 for fiscal 
years 2002 and 2003 in addition to amounts otherwise 
appropriated in this part.

           *       *       *       *       *       *       *


Part D--State Energy Conservation Plans

           *       *       *       *       *       *       *


                    STATE ENERGY CONSERVATION PLANS

  Sec. 362. (a) * * *

           *       *       *       *       *       *       *

  (g) The Secretary shall, at least once every three years, 
invite the Governor of each State to review and, if necessary, 
revise the energy conservation plan of such State submitted 
under subsection (b) or (e). Such reviews should consider the 
energy conservation plans of other States within the region, 
and identify opportunities and actions carried out in pursuit 
of common energy conservation goals.

           *       *       *       *       *       *       *


                     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 
October 1, 1991, shall contain a goal, consisting of an 
improvement of 10 percent or more in the efficiency of use of 
energy in the State concerned in the calendar year 2000 as 
compared to the calendar year 1990, and may contain interim 
goals. Each State energy conservation plan with respect to 
which assistance is made available under this part on or after 
the date of the enactment of Energy Advancement and 
Conservation Act of 2001, shall contain a goal, consisting of 
an improvement of 25 percent or more in the efficiency of use 
of energy in the State concerned in the calendar year 2010 as 
compared to the calendar year 1990, and may contain interim 
goals.

           *       *       *       *       *       *       *


                           GENERAL PROVISIONS

  Sec. 365. (a) * * *

           *       *       *       *       *       *       *

  (f) For the purpose of carrying out this part, there are 
authorized to be appropriated [for fiscal years 1999 through 
2003 such sums as may be necessary] $75,000,000 for fiscal year 
2002, $100,000,000 for fiscal years 2003 and 2004, $125,000,000 
for fiscal year 2005.

           *       *       *       *       *       *       *


Part G--Energy Conservation Program for Schools and Hospitals

           *       *       *       *       *       *       *


                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 397. For the purpose of carrying out this part, there 
are authorized to be appropriated for fiscal years 1999 through 
[2003] 2010 such sums as may be necessary.

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 422 OF THE ENERGY CONSERVATION AND PRODUCTION ACT

                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 422. For the purpose of carrying out the weatherization 
program under this part, there are authorized to be 
appropriated [for fiscal years 1999 through 2003 such sums as 
may be necessary] $250,000,000 for fiscal year 2002, 
$325,000,000 for fiscal year 2003, $400,000,000 for fiscal year 
2004, and $500,000,000 for fiscal year 2005.
                              ----------                              


      SECTION 2602 OF THE LOW-INCOME ENERGY ASSISTANCE ACT OF 1981

                     HOME ENERGY GRANTS AUTHORIZED

  Sec. 2602. (a)
  (b) [There are authorized to be appropriated to carry out the 
provisions of this title (other than section 2607A), 
$2,000,000,000 for each of fiscal years 1995 through 1999, such 
sums as may be necessary for each of fiscal years 2000 and 
2001, and $2,000,000,000 for each of fiscal years 2002 through 
2004.] There are authorized to be appropriated to carry out the 
provisions of this title (other than section 2607A), 
$3,400,000,000 for each of fiscal years 2001 through 2005. The 
authorizations of appropriations contained in this subsection 
are subject to the program year provisions of subsection (c).

           *       *       *       *       *       *       *

                              ----------                              


TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


PART C--INFORMATION, STANDARDS, AND REQUIREMENTS

           *       *       *       *       *       *       *


CHAPTER 329--AUTOMOBILE FUEL ECONOMY

           *       *       *       *       *       *       *


Sec. 32902. Average fuel economy standards

  (a) Non-Passenger Automobiles.--(1) At least 18 months before 
the beginning of each model year, the Secretary of 
Transportation shall prescribe by regulation average fuel 
economy standards for automobiles (except passenger 
automobiles) manufactured by a manufacturer in that model year. 
Each standard shall be the maximum feasible average fuel 
economy level that the Secretary decides the manufacturers can 
achieve in that model year. The Secretary may prescribe 
separate standards for different classes of automobiles.
  (2) The Secretary shall prescribe under paragraph (1) average 
fuel economy standards for automobiles (except passenger 
automobiles) manufactured in model years 2004 through 2010 that 
are calculated to ensure that the aggregate amount of gasoline 
projected to be used in those model years by automobiles to 
which the standards apply is at least 5 billion gallons less 
than the aggregate amount of gasoline that would be used in 
those model years by such automobiles if they achieved only the 
fuel economy required under the average fuel economy standard 
that applies under this subsection to automobiles (except 
passenger automobiles) manufactured in model year 2002.

           *       *       *       *       *       *       *


Sec. 32905. Manufacturing incentives for alternative fuel automobiles

  (a) * * *
  (b) Dual Fueled Automobiles.--Except as provided in 
subsection (d) of this section or section 32904(a)(2) of this 
title, for any model of dual fueled automobile manufactured by 
a manufacturer in [model years 1993-2004] model years 1993-
2008, the Administrator of the Environmental Protection Agency 
shall measure the fuel economy for that model by dividing 1.0 
by the sum of--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Gaseous Fuel Dual Fueled Automobiles.--For any model of 
gaseous fuel dual fueled automobile manufactured by a 
manufacturer in [model years 1993-2004] model years 1993-2008, 
the Administrator shall measure the fuel economy for that model 
by dividing 1.0 by the sum of--
          (1) * * *

           *       *       *       *       *       *       *

  (f) Extending Application of Subsections (b) and (d).--[Not 
later than December 31, 2001, the Secretary] Not later than 
December 31, 2005, the Secretary of Transportation shall--
          (1) extend by regulation the application of 
        subsections (b) and (d) of this section for not more 
        than 4 consecutive model years immediately after [model 
        year 2004] model year 2008 and explain the basis on 
        which the extension is granted; or

           *       *       *       *       *       *       *

  (g) Study and Report.--[Not later than September 30, 2000] 
Not later than September 30, 2004, the Secretary of 
Transportation, in consultation with the Secretary of Energy 
and the Administrator, shall complete a study of the success of 
the policy of subsections (b) and (d) of this title, and submit 
to the Committees on Commerce, Science, and Transportation and 
Governmental Affairs of the Senate and the Committee on 
Commerce of the House of Representatives a report on the 
results of the study, including preliminary conclusions on 
whether the application of subsections (b) and (d) should be 
extended for up to 4 more model years. The study and 
conclusions shall consider--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 32906. Maximum fuel economy increase for alternative fuel 
                    automobiles

  (a) Maximum Increases.--(1)(A) For each of [the model years 
1993-2004] model years 1993-2008 for each category of 
automobile (except an electric automobile), the maximum 
increase in average fuel economy for a manufacturer 
attributable to dual fueled automobiles is 1.2 miles a gallon.
  (B) If the application of section 32905(b) and (d) of this 
title is extended under section 32905(f) of this title, for 
each category of automobile (except an electric automobile) the 
maximum increase in average fuel economy for a manufacturer for 
each of [the model years 2005-2008] model years 2009-2012 
attributable to dual fueled automobiles is .9 mile a gallon.

           *       *       *       *       *       *       *


[Sec. 32917. Standards for executive agency automobiles

  [(a) Definition.--In this section, ``executive agency'' has 
the same meaning given that term in section 105 of title 5.
  [(b) Fleet Average Fuel Economy.--(1) The President shall 
prescribe regulations that require passenger automobiles leased 
for at least 60 consecutive days or bought by executive 
agencies in a fiscal year to achieve a fleet average fuel 
economy (determined under paragraph (2) of this subsection) for 
that year of at least the greater of--
          [(A) 18 miles a gallon; or
          [(B) the applicable average fuel economy standard 
        under section 32902(b) or (c) of this title for the 
        model year that includes January 1 of that fiscal year.
  [(2) Fleet average fuel economy is--
          [(A) the total number of passenger automobiles leased 
        for at least 60 consecutive days or bought by executive 
        agencies in a fiscal year (except automobiles designed 
        for combat-related missions, law enforcement work, or 
        emergency rescue work); divided by
          [(B) the sum of the fractions obtained by dividing 
        the number of automobiles of each model leased or 
        bought by the fuel economy of that model.]

Sec. 32917. Standards for executive agency automobiles

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

           *       *       *       *       *       *       *

                              ----------                              


                    SECTION 7 OF THE NATURAL GAS ACT

            EXTENSION OF FACILITIES; ABANDONMENT OF SERVICE

  Sec. 7. (a) * * *

           *       *       *       *       *       *       *

  (i) Notwithstanding the National Historic Preservation Act, a 
transportation facility shall not be eligible for inclusion on 
the National Register of Historic Places until the Commission 
has permitted the abandonment of the transportation facility 
pursuant to subsection (b) of this section.

                            ADDITIONAL VIEWS

    I want to begin my remarks by thanking Chairman Tauzin, 
Ranking Member Dingell, Subcommittee Chairman Barton, and 
Ranking Member Boucher--and their staffs--for putting so much 
time and effort into producing this balanced, bipartisan bill. 
This bill does not do everything that I would like to see done 
in helping our nation to meet the energy demands of the 21st 
Century, but it is a good first step.
    As my colleagues are aware, for a number of years now I 
have focused much of my attention on the need to improve the 
FERC hydroelectric licensing process. As such, I would like to 
say a few words about the hydro licensing provisions in this 
bill.
    Our nation is at an important crossroads regarding its 
hydro policy. We hear so much about the need for clean, 
reliable, cost-efficient energy sources, and yet our nation's 
hydropower resource--our largest renewable, emissions-free 
resource--remains threatened by a dysfunctional licensing 
process. Indeed, the record compiled in oversight and 
legislative hearings on this issue over the previous two 
Congresses demonstrates that legislative reform of the FERC 
hydroelectric relicensing process is needed--now more than 
ever--if our nation is to preserve consumer access to clean, 
reliable and cost-efficient hydropower.
    The relicensing process suffers from dispersed decision-
making authority and an inability to balance competing values. 
The bottom line is that costs, delays, and conflicting mandates 
inherent in the process threaten generation capacity and 
operational flexibility throughout the nation. As we lose 
megawatts and operational flexibility, we must rely on less 
efficient generation sources that both cost more and produce 
greenhouse gas and other emissions.
    Let me be clear. Sections 201 and 202 of the bill will not 
solve all of the problems inherent in the licensing process. 
But if enacted into law, they could be an effective and useful 
tool to encourage innovative approaches to regulations without 
sacrificing important environmental outcomes. In that regard, 
this bill is an important first step.
    But there is much more that needs to be done. I remain 
committed to pursuing more comprehensive hydro licensing 
improvements, such as those contained in my legislation, H.R. 
1832. I am pleased that the majority and minority leadership of 
this Committee have made a commitment to revisit this issue 
later this Congress, and I look forward to working with them to 
that end.
    Before I conclude, I want to express my thanks to 
Congressmen Wynn and Shadegg for their efforts in support of 
hydro licensing reform. In addition, I want to thank Chairman 
Tauzin and Chairman Barton for their leadership in keeping this 
issue, and my legislation, at the forefront of the Committee 
agenda this Congress and in each of the previous Congresses. 
And finally, I want to thank Ranking Member Dingell for his 
good-faith effort over the past year to seek solutions. I have 
long believed that the hydro licensing debate is a search for 
balance--a balance between the vital energy values of 
hydropower and the need to fully protect the environment. It is 
this search for balance that has served this Committee well 
over the last few weeks, and that, I hope, will serve us well 
going forward as we continue to tackle the important energy 
issues before us.
    Mr. Chairman, thank you.

                                                    Edolphus Towns.

                  ADDITIONAL VIEWS OF HON. TOM BARRETT

    I supported the Energy Advancement and Conservation Act. 
The bill as reported by the Energy and Commerce Committee 
includes modest but progressive enhancements to conservation 
and federal energy management programs.
    I am, however, concerned that the Energy and Air Quality 
Subcommittee and the full Energy and Commerce Committee have 
failed to adopt the proposal I offered to promote energy 
efficiency by requiring the federal government to buy energy-
efficient central air conditioners. This common-sense 
provision, adopted as part of the bill's original bipartisan 
Consensus Staff Draft, would direct the federal government to 
lead by example and would demonstrate to our constituents that 
we in Congress really mean what we say about the importance of 
energy conservation.
    The energy efficiency standards I proposed were developed 
as the result of a rulemaking process in the State of 
California. By comparison to standards relying exclusively on 
Seasonal Energy Efficiency Ratio (SEER) measurements, which 
promote efficiency based on seasonal averages, these standards 
offer additional benefits by incorporating Energy Efficiency 
Ratio (EER) values that promote efficiency even during peak 
demand times. This helps to ensure the power grid's reliability 
during peak load times, when demand management is needed most. 
In part because of its conservation and reliability benefits, 
my amendment is endorsed by environmental advocates including 
the Natural Resources Defense Council and the American Council 
for an Energy Efficient Economy.
    California selected these standards based not only on their 
environmental responsibility, but also on their practicality. 
California's analysis indicates that, of approximately 80 air 
conditioner manufacturers examined by the state, about one 
quarter offer models meeting the proposed energy efficiency 
standard. This standard enjoys the support of Goodman 
Manufacturing, which makes air conditioners under several brand 
names, and is confident that American firms can compete in the 
market for energy-efficient air conditioners.
    The proposed standards would save tax dollars in the long 
run, by reducing federal agencies' electricity bills. With 
energy efficiency rebates available from electric power utility 
firms, they may even allow the government to buy more energy-
efficient air conditioners that are also cheaper upfront. I had 
hoped that my colleagues on both sides of the aisle would have 
agreed that it makes more sense to direct our constituents' tax 
dollars toward the provision of government services than toward 
the local power company's bottom line.
    Perhaps most importantly, my amendment would send a clear 
and unmistakable message that we in Congress really mean it 
when we say that we support energy efficiency and conservation. 
By adopting this amendment, the committee could have expressed 
its commitment in the most tangible way possible in a free 
market economy: by voting with our dollars. This approach tells 
the market that America is serious about energy efficiency in a 
way no statement of principle or incentive program could.
    By comparison, the air conditioner energy efficiency 
provision adopted by the Energy and Air Quality Subcommittee is 
at best disappointing and at worse counterproductive. The 
provision adopted with the backing of the Subcommittee's 
leadership would have no meaningful effect in promoting energy 
efficiency. It applies a lower energy efficiency standard than 
the Consensus Staff Draft language, and it applies that 
standard only to very small central air conditioners. The only 
air conditioners covered by the Subcommittee-approved language 
are those with cooling capacities of less than 65,000 BTUs per 
hour. The Chief Architect's Office at the General Services 
Administration confirmed that such air conditioners are not 
commonly used in commercial buildings like federal buildings. 
Consequently, these standards would have almost no practical 
effect.
    Worse yet, by deleting the Consensus Staff Draft language 
in favor of the provision supported by the Subcommittee 
leadership, we are sending a message to environmental advocates 
and manufacturers that we are not serious about energy 
efficiency and conservation. The language adopted at 
subcommittee would apply to federal government buildings an 
efficiency standard that is the same as the standard proposed 
by the Bush Administration for consumer appliances. That 
proposed standard is already the subject of well-founded 
litigation, and it may very likely be struck down by the 
courts. This alarming possibility would mean that we in 
Congress have actually gone out of our way to set an energy 
efficiency standard for federal procurement that trails behind 
the standard applicable to mass-market consumer products. 
Again, I had hoped that my colleagues on both sides of the 
aisle would have agreed that the federal government should be 
setting an example for others to emulate, rather than defining 
our goals based on the lowest common denominator.
    ``The federal government should set a good example of 
conservation by reducing its own energy use'' I could not agree 
more with this sentiment, expressed by President George Bush 
and quoted in the May 4, 2001, Washington Post. The language 
adopted at subcommittee does not live up to this commitment. 
The language I drafted for inclusion in the Consensus Staff 
Draft would offer an opportunity for the federal government to 
demonstrate true leadership.
    I was encouraged that, during full committee consideration 
of the bill, Chairman Tauzin and Ranking Member Dingell offered 
to work together to address these concerns before the bill 
reaches the House floor. I am hopeful that the House will be 
able to consider a bill that would allow Congress to 
demonstrate that we will walk the walk, as well as talk the 
talk, on energy efficiency and conservation.

                                
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